Select the best answer for the following questions. Each question is worth 5 points Question 1 (5 points) Using the selected data below, calculate the net cash provided by operating activities: Net income $240,000

Multiple Choice Questions

Select the best answer for the following questions. Each question is worth 5 points

Question 1 (5 points)

Using the selected data below, calculate the net cash provided by operating activities:

Net income	$240,000
Increase in accounts receivable	$15,000
Increase in accounts payable	$12,000
Gain on the sale of equipment	$8,000
Depreciation expense	$18,000
Purchase of new delivery truck	$35,000

Question 1 options:

	$247,000
	$250,000
	$255,000
	$263,000

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Question 2 (5 points)

Using the selected data below, calculate the net cash provided or (used) by investing activities:

Net income	$180,000
Depreciation expense	$16,000
Gain on the sale of equipment	$10,000
Cash proceeds on sale of equipment	$12,000
Purchase of new delivery truck	$35,000

Question 2 options:

	$157,000
	($13,000)
	($23,000)
	$3,000

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Question 3 (5 points)

A company had an accounts receivable balance of $425,000 at the beginning of the year and $500,000 at the end of the year. The total credit sales during the year were $3,600,000. What was the average collection period in days (round to nearest number of days)?

Question 3 options:

	43 days
	47 days
	51 days
	53 days

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Question 4 (5 points)

A Corporation has 250,000 shares of $10 par common stock issued and outstanding. AA Corporation also has 50,000 shares of $100, 6% par cumulative preferred stock. In 2016, AA had net income of $3,500,000. The number of shares of both common and preferred stock has not changed during the year, and the preferred stock dividends were paid at the end of 2015. What are the common earnings per share (EPS) for 2016? Round to the nearest cent.

Question 4 options:

	$1.40
	$14.00
	$12.80
	$13.73

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Question 5 (5 points)

At the beginning of the year, Bell Corporation’s balance sheet showed total assets of $14,000,000, and at the end of the year, the total assets had grown to $16,000,000. Bell had net income of $2,000,000 based on sales of $30,000,000. What was the total asset turnover for Bell? Round to two decimal places.

Question 5 options:

	$0.50
	$1.87
	$2.14
	$2.00

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Question 6 (5 points)

A manufacturing company allocates overhead at a fixed rate of $65 per hour based on direct labor hours. During the month, total overhead incurred was $280,000, and the total direct labor hours work was 4,000. Job number 5-23 had 50 hours of direct labor. What is the amount of overhead allocated to job 5-23?

Question 6 options:

	$3,000
	$3,250
	$3,500
	$3,750

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Question 7 (5 points)

Bargain Discounter Inc. is a merchandiser that had inventory at the beginning of the year of $840,000. It made purchases of $1,550,000 and had returns and allowances on purchases of $50,000. Ending inventory was $880,000. Total cost of goods sold was $1,460,000. What was the goods available for sale amount?

Question 7 options:

	$2,340,000
	$620,000
	$2,290,000
	$2,390,000

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Question 8 (5 points)

Ace Widget Company is a process manufacturer. The company budgeted 11,500 direct labor hours but had actual direct labor hours of 12,000. The company produced 60,000 equivalent units, spending $300,000 on material. Labor rate is $15 per hour, and overhead is applied at a rate of $25 per direct labor hour. What is the total manufacturing cost per unit? Round to the closest cent.

Question 8 options:

	$11.92
	$15
	$12.67
	$13

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Question 9 (5 points)

The assembly department had beginning work in process of 18,000 units, ending work in process of 22,000 units, and units transferred out of 58,000 units. What was the number of units started or transferred in?

Question 9 options:

	58,000
	62,000
	66,000
	70,000

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Question 10 (5 points)

Cabot Corp. is a job lot manufacturer. The budget for the month of May calls for 7,000 direct labor hours to be worked. Budgeted overhead is $84,000 with a predetermined rate of $12 per hour. Overhead is applied based on actual direct hours worked. Actual direct hours were 7,200 and actual overhead spending was $83,000. What was the under applied or over applied overhead for the month of May? Over applied is shown as a negative number.

Question 10 options:

	$3,400
	$2,400
	($2,400)
	($3,400)

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Problems

For this part of the quiz, you will be uploading your work through an answer sheet. The instructions for how to upload your answer sheet are provided below.

Question 11 (50 points)

Problem 1 (10 POINTS) Apollo Manufacturing produces a basic cellphone as a contract manufacturer. Overhead is applied at a rate of $42 per direct labor hour. The direct labor rate is $18 per hour. In March, there was no beginning or ending work in process, and the assembly department produced 20,000 finished phones. The materials cost was $120,000, and there were 2,500 direct labor hours worked during the month. Actual overhead spending was $103,400 during the month. Calculate the total cost of production in the month of March and the cost per unit for each phone produced. Determine if overhead was over applied or under applied and by what amount.

Problem 2 (10 POINTS) Mega Manufacturing produces wooden chairs. The cutting department produces all of the component parts and transfers the parts to the assembly department. The assembly department had no work in process at the beginning of the month and had two jobs started during the month. Since materials are transferred in, all materials are charged to each job at the beginning of the job. The materials cost is $17.50 per chair. Assembly time is 20 minutes per chair and the direct labor rate is $15 per hour. Overhead is charged to a job only when a job is completed and ready to transfer to finished goods. The overhead is applied on a per-chair basis at a rate of $6 per chair. Job No. 1 was for 1,000 chairs, and it was started and completed during the month. Job No. 2 was for 1,500 chairs, and it was 60% complete at month end. Calculate the costs to complete Job No. 1 and the unit cost per chair. Calculate the costs charged as of month’s end and the equivalent units of production for Job No. 2.

Problem 3 (15 POINTS) Presented below is an income statement, with the past two years’ results presented:   2016 2015 Revenue $4,200,000 $4,000,000 Cost of goods sold $2,910,000 $2,800,000 Gross profit $1,290,000 $1,200,000 Selling cost $280,000 $250,000 Administrative cost $140,000 $120,000 Operating profit $870,000 $830,000 Interest expense $78,000 $80,000 Income before taxes $792,000 $750,000 Income taxes $277,200 $262,500 Net income $514,800 $487,500 Prepare a vertical analysis of both 2016 and 2015. Display percentages to 3 decimal places (.654 = 65.4%). Discuss any line items from the income statement that may warrant further investigation from management.

Problem 4 (15 POINTS) Presented below is a balance sheet for the last two years:   2016 2015 Cash  $118,000 $115,000 Accounts receivable $98,000 $ 77,000 Short-term investments $60,000 $65,000 Current assets $276,000 $257,000 Equipment, net of depreciation  $220,000 $205,000 Land $75,000 $75,000 Total assets $571,000 $537,000       Accounts payable $72,000 $96,000 Wages payable $4,000 $3,000 Short-term revolving bank loan $85,000 $50,000 Current liabilities $161,000   $149,000 Long-term debt $128,000 $132,000 Total liabilities $289,000 $281,000 Common stock $100,000 $100,000 Prepare a horizontal analysis. Display percentages to 3 decimal places (.654 = 65.4%). Discuss any line items from the balance sheet that may warrant further investigation from management.

 

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