Sunday 11 November 2012







Instructions































 



































To complete the homework assignments in the templates provided:



















1.

The question is provided for each problem. You may need to refer to your textbook for additional information in a few cases.



















2.

You will enter the required information into the shaded cells.




















3.

The cells are coded:























a.

T  requires a text answer.























b.

C  requires a calculation. You cannot perform the operation on a calculator and then type the answer in the cell. You will enter the calculation in the cell, and only the final answer will show in the cell. I will be able to review your calculation and correct, if necessary.
















c.

F  requires a number only. In some problems, a “Step 1” is added to help you solve the problem.




















4.

Name your assignment file as "lastnamefirstinitial-FINC650-Week#", and submit by midnight EST, Day 7.







































 


Problem 1-2:  Users of Accounting Information and Their Needs



 










 


Havre Company would like to buy a building and equipment to produce a new product line.  Information about Havre is more useful to some people involved in the project than to others.

Complete the following chart by identifying the information listed with the user’s need to know the information.  Identify the information as one of the following: a. Need to know, b. Helpful to know, or c. Not necessary to know

 


 


 


 










 


1.

Amount of current debt, repayment schedule, and interest rate

 

 


2.

Fair market value of the building

 

 

 

 

 


3.

Condition of the roof and heating and cooling, electrical, and plumbing systems

 


4.

Total cost of the building, improvements, and equipment to set up production

 

 


5.

Expected sales from the new product, variable production costs, and related selling costs

 










 




Users of Information

 

 

 

 


 




Management

 

Stockholders

 

Banker


 



1.

T

 

T

 

T


 



2.

T

 

T

 

T


 



3.

T

 

T

 

T


 



4.

T

 

T

 

T


 



5.

T

 

T

 

T


 










 












Problem 1-5: Income Statement, Statement of Retained Earnings, and Balance Sheet




General Instructions









1. The following worksheet may be used to complete the exercise/problem.





    You may need to refer to your textbook for additional information.






2. The blue cells are for data entry. Enter text in the T cells, figures in the F cells, calculations in C cells











P1-5


















The following list, in alphabetical order, shows the various items that regularly appear on the financial



statements of Maple Park Theatres Corp. The amounts shown for balance sheet items are balances



as of September 30, 2012 (with the exception of retained earnings, which is the balance on



September 1, 2012); and the amounts shown for income statement items are balances for the month



ended September 30, 2012.

 

 

 

 

 

 



 

 

 

 

 

 

 



Accounts payable

 

 $    17,600

 

 

 

 



Accounts receivable

 

        6,410

 

 

 

 



Advertising expense

 

       14,500

 

 

 

 



Buildings

 

       60,000

 

 

 

 



Capital stock

 

       50,000

 

 

 

 



Cash

 

       15,230

 

 

 

 



Concessions revenue

 

       60,300

 

 

 

 



Cost of concessions sold

 

       23,450

 

 

 

 



Dividends paid during the month

 

        8,400

 

 

 

 



Furniture and fixtures

 

       34,000

 

 

 

 



Land

 

       26,000

 

 

 

 



Notes payable

 

       20,000

 

 

 

 



Projection equipment

 

       25,000

 

 

 

 



Rent expense—movies

 

       50,600

 

 

 

 



Retained earnings

 

       73,780

 

 

 

 



Salaries and wages expense

 

       46,490

 

 

 

 



Ticket sales

 

       95,100

 

 

 

 



Water, gas, and electricity

 

        6,700

 

 

 

 












Required


















1. Prepare an income statement for the month ended September 30, 2012.














MAPLE PARK THEATRES CORP.






INCOME STATEMENT






FOR THE MONTH ENDED SEPTEMBER 30, 2012















Revenues:









T


 F







T


 F







Total revenues



 C









 






Expenses:









T


 F







T


 F







T


 F







T


 F







T


 F







Total expenses



 C






Net income



 C















2. Prepare a statement of retained earnings for the month ended September 30, 2012.













MAPLE PARK THEATRES CORP.






STATEMENT OF RETAINED EARNINGS






FOR THE MONTH ENDED SEPTEMBER 30, 2012















Beginning balance, September 1, 2012



 F






T



 F






T



 F






Ending balance, September 30, 2012



 C















3. Prepare a balance sheet at September 30, 2012







Note: Classify Assets and Liabilities in the order of Liquidity















MAPLE PARK THEATRES CORP.






BALANCE SHEET






SEPTEMBER 30, 2012















Assets







T



 F






T



 F






T



 F






T



 F






T



 F






T



 F






Total assets



 C















    Liabilities and Stockholders' Equity







T



 F






T



 F






T



 F






T



 F






Total liabilities and stockholders' equity



 C















4. You have $1,000 to invest. On the basis of the statements you prepared, would you use it to buy

 



stock in Maple Park? Explain. What other information would you want before making a



final decision?

 

 

 

 

 

 












T


























The following items, in alphabetical order, are available from the records of Walker Corporation as of December 31, 2012 and 2011:





 

12/31/12

12/31/11



Accounts payable

8400

5200



Accounts receivable

27830

35770



Cash

20200

19450



Cleaning supplies

450

700



Interest payable

0

1200



Inventory

24600

26200



Marketable securities

6250

5020



Note payable, due in six months

0

12000



Prepaid rent

3600

4800



Taxes payable

1450

1230



Wages payable

1200

1600



 

 

 



1. Calculate the following as of December 31, 2012 and 2011:



a.     Working capital

 

 



b.     Current ratio

 

 



 

 

 



2. On the basis of your answers to (1), comment on the company’s relative liquidity at the beginning and end of the year.  Explain the change in the company’s liquidity from the beginning to the end of 2012.





 

 

 


1a.

STEP 1:





Current Assets

FY2012

FY2011



T

F

F



T

F

F



T

F

F



T

F

F



T

F

F



T

F

F



TOTAL

C

C








Current Liabilities

FY2012

FY2011



T

F

F



T

F

F



T

F

F



T

F

F



T

F

F



TOTAL

C

C



STEP 2:





Working Capital

C

C







1b.

Current Ratio

C

C












2.

T





Problem 2-7: Multiple-Step Income Statements and Profit Margin





Refer to the list of income statement items in Problem 2-6 (provided below).  Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative.

 



 



 



 

 

 

Advertising expense

1500

 

 



 

 

 

Commissions expense

2415

 

 



 

 

 

Cost of goods sold

29200

 

 



 

 

 

Depreciation expense-office building

2900

 

 



 

 

 

Income tax expense

1540

 

 



 

 

 

Insurance expense-salesperson’s auto

2250

 

 



 

 

 

Interest Expense

1400

 

 



 

 

 

Interest revenue

1340

 

 



 

 

 

Rent revenue

6700

 

 



 

 

 

Salaries and wages expense-office

12560

 

 



 

 

 

Sales revenue

48300

 

 



 

 

 

Supplies expense-office

890

 

 



 

 

 

 

 

 

 



 

1.

Prepare a multiple-step income statement for the year ended December 31, 2012.



 

2.

What advantages do you see in this form for the income statement?

 



 

3.

Compute Shaw’s profit margin.

 

 

 



 

4.

Comment on Shaw’s profitability.  What other factors need to be taken into account to assess Shaw’s profitability ?





















1. Multiple-step income statement






SHAW CORPORATION


INCOME STATEMENT


FOR THE MONTH ENDED DECEMBER 31, 2012


Sales




F




Cost of goods sold


F




Gross profit




C



Operating expenses:







Selling expenses:








Advertising

F







Commissions

F







Insurance—salesperson’s auto

F






Total selling expenses


C





General and administrative expenses:








Depreciation—office building

F







Salaries and wages—office

F







Supplies—office

F






Total general and administrative expenses


C




Total operating expenses



C



Loss from operations



C



Other revenues and expenses:







Interest expense

F






Interest revenue

F






Rent revenue

F





Excess of other revenues over other expenses



C



Income before taxes



C



Income tax expense



F



Net income




C



 

 

 

 

 

 

 

 




















2. Advantages: T












3. Profit Margin Formula

Calculation





T

C














4. Profitability Comments: T






















































 










 










 










 










 










 










 










 










 










 










 










 










 










 










 










 










 










 










 










 










 






















 

 



CLICK HERE TO GET THE ANSWER !!!! Instructions To complete the homework assignments in the templates provided: 1. The question is provided for each problem. You may need to refer to your textbook for additional information in a few cases. 2. You will enter the required information into the shaded cells. 3. The cells are coded: a. T requires a text answer. b. C requires a calculation. You cannot perform the operation on a calculator and then type the answer in the cell. You will enter the calculation in the cell, and only the final answer will show in the cell. I will be able to review your calculation and correct, if necessary. c. F requires a number only. In some problems, a “Step 1” is added to help you solve the problem. 4. Name your assignment file as "lastnamefirstinitial-FINC650-Week#", and submit by midnight EST, Day 7. Problem 1-2: Users of Accounting Information and Their Needs Havre Company would like to buy a building and equipment to produce a new product line. Information about Havre is more useful to some people involved in the project than to others. Complete the following chart by identifying the information listed with the user’s need to know the information. Identify the information as one of the following: a. Need to know, b. Helpful to know, or c. Not necessary to know 1. Amount of current debt, repayment schedule, and interest rate 2. Fair market value of the building 3. Condition of the roof and heating and cooling, electrical, and plumbing systems 4. Total cost of the building, improvements, and equipment to set up production 5. Expected sales from the new product, variable production costs, and related selling costs Users of Information Management Stockholders Banker 1. T T T 2. T T T 3. T T T 4. T T T 5. T T T Problem 1-5: Income Statement, Statement of Retained Earnings, and Balance Sheet General Instructions 1. The following worksheet may be used to complete the exercise/problem. You may need to refer to your textbook for additional information. 2. The blue cells are for data entry. Enter text in the T cells, figures in the F cells, calculations in C cells P1-5 The following list, in alphabetical order, shows the various items that regularly appear on the financial statements of Maple Park Theatres Corp. The amounts shown for balance sheet items are balances as of September 30, 2012 (with the exception of retained earnings, which is the balance on September 1, 2012); and the amounts shown for income statement items are balances for the month ended September 30, 2012. Accounts payable $ 17,600 Accounts receivable 6,410 Advertising expense 14,500 Buildings 60,000 Capital stock 50,000 Cash 15,230 Concessions revenue 60,300 Cost of concessions sold 23,450 Dividends paid during the month 8,400 Furniture and fixtures 34,000 Land 26,000 Notes payable 20,000 Projection equipment 25,000 Rent expense—movies 50,600 Retained earnings 73,780 Salaries and wages expense 46,490 Ticket sales 95,100 Water, gas, and electricity 6,700 Required 1. Prepare an income statement for the month ended September 30, 2012. MAPLE PARK THEATRES CORP. INCOME STATEMENT FOR THE MONTH ENDED SEPTEMBER 30, 2012 Revenues: T F T F Total revenues C Expenses: T F T F T F T F T F Total expenses C Net income C 2. Prepare a statement of retained earnings for the month ended September 30, 2012. MAPLE PARK THEATRES CORP. STATEMENT OF RETAINED EARNINGS FOR THE MONTH ENDED SEPTEMBER 30, 2012 Beginning balance, September 1, 2012 F T F T F Ending balance, September 30, 2012 C 3. Prepare a balance sheet at September 30, 2012 Note: Classify Assets and Liabilities in the order of Liquidity MAPLE PARK THEATRES CORP. BALANCE SHEET SEPTEMBER 30, 2012 Assets T F T F T F T F T F T F Total assets C Liabilities and Stockholders' Equity T F T F T F T F Total liabilities and stockholders' equity C 4. You have $1,000 to invest. On the basis of the statements you prepared, would you use it to buy stock in Maple Park? Explain. What other information would you want before making a final decision? T The following items, in alphabetical order, are available from the records of Walker Corporation as of December 31, 2012 and 2011: 12/31/12 12/31/11 Accounts payable 8400 5200 Accounts receivable 27830 35770 Cash 20200 19450 Cleaning supplies 450 700 Interest payable 0 1200 Inventory 24600 26200 Marketable securities 6250 5020 Note payable, due in six months 0 12000 Prepaid rent 3600 4800 Taxes payable 1450 1230 Wages payable 1200 1600 1. Calculate the following as of December 31, 2012 and 2011: a. Working capital b. Current ratio 2. On the basis of your answers to (1), comment on the company’s relative liquidity at the beginning and end of the year. Explain the change in the company’s liquidity from the beginning to the end of 2012. 1a. STEP 1: Current Assets FY2012 FY2011 T F F T F F T F F T F F T F F T F F TOTAL C C Current Liabilities FY2012 FY2011 T F F T F F T F F T F F T F F TOTAL C C STEP 2: Working Capital C C 1b. Current Ratio C C 2. T Problem 2-7: Multiple-Step Income Statements and Profit Margin Refer to the list of income statement items in Problem 2-6 (provided below). Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative. Advertising expense 1500 Commissions expense 2415 Cost of goods sold 29200 Depreciation expense-office building 2900 Income tax expense 1540 Insurance expense-salesperson’s auto 2250 Interest Expense 1400 Interest revenue 1340 Rent revenue 6700 Salaries and wages expense-office 12560 Sales revenue 48300 Supplies expense-office 890 1. Prepare a multiple-step income statement for the year ended December 31, 2012. 2. What advantages do you see in this form for the income statement? 3. Compute Shaw’s profit margin. 4. Comment on Shaw’s profitability. What other factors need to be taken into account to assess Shaw’s profitability ? 1. Multiple-step income statement SHAW CORPORATION INCOME STATEMENT FOR THE MONTH ENDED DECEMBER 31, 2012 Sales F Cost of goods sold F Gross profit C Operating expenses: Selling expenses: Advertising F Commissions F Insurance—salesperson’s auto F Total selling expenses C General and administrative expenses: Depreciation—office building F Salaries and wages—office F Supplies—office F Total general and administrative expenses C Total operating expenses C Loss from operations C Other revenues and expenses: Interest expense F Interest revenue F Rent revenue F Excess of other revenues over other expenses C Income before taxes C Income tax expense F Net income C 2. Advantages: T 3. Profit Margin Formula Calculation T C 4. Profitability Comments: T CLICK HERE TO GET THE ANSWER !!!!







Instructions































 



































To complete the homework assignments in the templates provided:



















1.

The question is provided for each problem. You may need to refer to your textbook for additional information in a few cases.



















2.

You will enter the required information into the shaded cells.




















3.

The cells are coded:























a.

T  requires a text answer.























b.

C  requires a calculation. You cannot perform the operation on a calculator and then type the answer in the cell. You will enter the calculation in the cell, and only the final answer will show in the cell. I will be able to review your calculation and correct, if necessary.
















c.

F  requires a number only. In some problems, a “Step 1” is added to help you solve the problem.




















4.

Name your assignment file as "lastnamefirstinitial-FINC650-Week#", and submit by midnight EST, Day 7.







































 


Problem 1-2:  Users of Accounting Information and Their Needs



 










 


Havre Company would like to buy a building and equipment to produce a new product line.  Information about Havre is more useful to some people involved in the project than to others.

Complete the following chart by identifying the information listed with the user’s need to know the information.  Identify the information as one of the following: a. Need to know, b. Helpful to know, or c. Not necessary to know

 


 


 


 










 


1.

Amount of current debt, repayment schedule, and interest rate

 

 


2.

Fair market value of the building

 

 

 

 

 


3.

Condition of the roof and heating and cooling, electrical, and plumbing systems

 


4.

Total cost of the building, improvements, and equipment to set up production

 

 


5.

Expected sales from the new product, variable production costs, and related selling costs

 










 




Users of Information

 

 

 

 


 




Management

 

Stockholders

 

Banker


 



1.

T

 

T

 

T


 



2.

T

 

T

 

T


 



3.

T

 

T

 

T


 



4.

T

 

T

 

T


 



5.

T

 

T

 

T


 










 












Problem 1-5: Income Statement, Statement of Retained Earnings, and Balance Sheet




General Instructions









1. The following worksheet may be used to complete the exercise/problem.





    You may need to refer to your textbook for additional information.






2. The blue cells are for data entry. Enter text in the T cells, figures in the F cells, calculations in C cells











P1-5


















The following list, in alphabetical order, shows the various items that regularly appear on the financial



statements of Maple Park Theatres Corp. The amounts shown for balance sheet items are balances



as of September 30, 2012 (with the exception of retained earnings, which is the balance on



September 1, 2012); and the amounts shown for income statement items are balances for the month



ended September 30, 2012.

 

 

 

 

 

 



 

 

 

 

 

 

 



Accounts payable

 

 $    17,600

 

 

 

 



Accounts receivable

 

        6,410

 

 

 

 



Advertising expense

 

       14,500

 

 

 

 



Buildings

 

       60,000

 

 

 

 



Capital stock

 

       50,000

 

 

 

 



Cash

 

       15,230

 

 

 

 



Concessions revenue

 

       60,300

 

 

 

 



Cost of concessions sold

 

       23,450

 

 

 

 



Dividends paid during the month

 

        8,400

 

 

 

 



Furniture and fixtures

 

       34,000

 

 

 

 



Land

 

       26,000

 

 

 

 



Notes payable

 

       20,000

 

 

 

 



Projection equipment

 

       25,000

 

 

 

 



Rent expense—movies

 

       50,600

 

 

 

 



Retained earnings

 

       73,780

 

 

 

 



Salaries and wages expense

 

       46,490

 

 

 

 



Ticket sales

 

       95,100

 

 

 

 



Water, gas, and electricity

 

        6,700

 

 

 

 












Required


















1. Prepare an income statement for the month ended September 30, 2012.














MAPLE PARK THEATRES CORP.






INCOME STATEMENT






FOR THE MONTH ENDED SEPTEMBER 30, 2012















Revenues:









T


 F







T


 F







Total revenues



 C









 






Expenses:









T


 F







T


 F







T


 F







T


 F







T


 F







Total expenses



 C






Net income



 C















2. Prepare a statement of retained earnings for the month ended September 30, 2012.













MAPLE PARK THEATRES CORP.






STATEMENT OF RETAINED EARNINGS






FOR THE MONTH ENDED SEPTEMBER 30, 2012















Beginning balance, September 1, 2012



 F






T



 F






T



 F






Ending balance, September 30, 2012



 C















3. Prepare a balance sheet at September 30, 2012







Note: Classify Assets and Liabilities in the order of Liquidity















MAPLE PARK THEATRES CORP.






BALANCE SHEET






SEPTEMBER 30, 2012















Assets







T



 F






T



 F






T



 F






T



 F






T



 F






T



 F






Total assets



 C















    Liabilities and Stockholders' Equity







T



 F






T



 F






T



 F






T



 F






Total liabilities and stockholders' equity



 C















4. You have $1,000 to invest. On the basis of the statements you prepared, would you use it to buy

 



stock in Maple Park? Explain. What other information would you want before making a



final decision?

 

 

 

 

 

 












T


























The following items, in alphabetical order, are available from the records of Walker Corporation as of December 31, 2012 and 2011:





 

12/31/12

12/31/11



Accounts payable

8400

5200



Accounts receivable

27830

35770



Cash

20200

19450



Cleaning supplies

450

700



Interest payable

0

1200



Inventory

24600

26200



Marketable securities

6250

5020



Note payable, due in six months

0

12000



Prepaid rent

3600

4800



Taxes payable

1450

1230



Wages payable

1200

1600



 

 

 



1. Calculate the following as of December 31, 2012 and 2011:



a.     Working capital

 

 



b.     Current ratio

 

 



 

 

 



2. On the basis of your answers to (1), comment on the company’s relative liquidity at the beginning and end of the year.  Explain the change in the company’s liquidity from the beginning to the end of 2012.





 

 

 


1a.

STEP 1:





Current Assets

FY2012

FY2011



T

F

F



T

F

F



T

F

F



T

F

F



T

F

F



T

F

F



TOTAL

C

C








Current Liabilities

FY2012

FY2011



T

F

F



T

F

F



T

F

F



T

F

F



T

F

F



TOTAL

C

C



STEP 2:





Working Capital

C

C







1b.

Current Ratio

C

C












2.

T





Problem 2-7: Multiple-Step Income Statements and Profit Margin





Refer to the list of income statement items in Problem 2-6 (provided below).  Assume that Shaw Corporation classifies all operating expenses into two categories: (1) selling and (2) general and administrative.

 



 



 



 

 

 

Advertising expense

1500

 

 



 

 

 

Commissions expense

2415

 

 



 

 

 

Cost of goods sold

29200

 

 



 

 

 

Depreciation expense-office building

2900

 

 



 

 

 

Income tax expense

1540

 

 



 

 

 

Insurance expense-salesperson’s auto

2250

 

 



 

 

 

Interest Expense

1400

 

 



 

 

 

Interest revenue

1340

 

 



 

 

 

Rent revenue

6700

 

 



 

 

 

Salaries and wages expense-office

12560

 

 



 

 

 

Sales revenue

48300

 

 



 

 

 

Supplies expense-office

890

 

 



 

 

 

 

 

 

 



 

1.

Prepare a multiple-step income statement for the year ended December 31, 2012.



 

2.

What advantages do you see in this form for the income statement?

 



 

3.

Compute Shaw’s profit margin.

 

 

 



 

4.

Comment on Shaw’s profitability.  What other factors need to be taken into account to assess Shaw’s profitability ?





















1. Multiple-step income statement






SHAW CORPORATION


INCOME STATEMENT


FOR THE MONTH ENDED DECEMBER 31, 2012


Sales




F




Cost of goods sold


F




Gross profit




C



Operating expenses:







Selling expenses:








Advertising

F







Commissions

F







Insurance—salesperson’s auto

F






Total selling expenses


C





General and administrative expenses:








Depreciation—office building

F







Salaries and wages—office

F







Supplies—office

F






Total general and administrative expenses


C




Total operating expenses



C



Loss from operations



C



Other revenues and expenses:







Interest expense

F






Interest revenue

F






Rent revenue

F





Excess of other revenues over other expenses



C



Income before taxes



C



Income tax expense



F



Net income




C



 

 

 

 

 

 

 

 




















2. Advantages: T












3. Profit Margin Formula

Calculation





T

C














4. Profitability Comments: T






















































 










 










 










 










 










 










 










 










 










 










 










 










 










 










 










 










 










 










 










 










 






















 

 



CLICK HERE TO GET THE ANSWER !!!!

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