158_714_second test 2a

158_714_second test 2a - 1 THE 2005 SPRING ACCOUNTING TRIBE...

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1 THE 2005 SPRING ACCOUNTING TRIBE The Second Scrimmage Rules: No cheating ______________________________________ Name ______________________________ PID _________________ Campus Version 1 The following data is for Bella Corporation: Balance Balance
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12/31/05 12/31/04 Cash 20,000 50,000 Accounts Receivable 50,000 35,000 Inventory 50,000 94,000 Equipment 250,000 200,000 Accumulated Depreciation 25,000 20,000 Land 100,000 Accounts Payable 40,000 60,000 Wages Payable 15,000 9,000 Taxes Payable 10,000 30,000 Long-Term Note Payable 90,000 100,000 Common Stock ($1 each) 110,000 50,000 Retained Earnings 180,000 110,000 Sales 1,000,000 Cost of Goods Sold 600,000 Wage Expense 210,000 Rent Expense 48,000 Office Expenses 19,000 Depreciation Expense 18,000 Interest Expense 10,000 Income Tax Expense 20,000 Gain on Sale of Equipment 5,000 The land was acquired on April 1, 2005 by exchanging 50,000 shares of common stock worth $50,000 and cash for the balance of the purchase price. The additional common stock (other than that issued for the purchase of the land) was sold on October 1st for $1 per share. The company sold a piece of equipment during the year that cost $20,000 and had accumulated depreciation of $13,000 for a gain of $5,000. The retained earnings balance for both years is after all closing entries have been made. During 2005, the 2004 taxes payable were paid and ½ of the 2005 taxes were paid. The company’s tax rate is 20% The market price per share at Dec 31, 2005 was $50. The Note Payable requires payments of $10,000 principal plus interest at 10% on December 31 st of each year of each year. Prepare, in good form, a statement of cash flow for 2005 (100 points)
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Prepare, in good form, an income statement for 2005 (50 points)
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Multiple Choice ( 5 points each) Using the data from Bella Corporation, answer questions 1-6 (Be careful to note which year the question is asking about). Answers, to be correct, must be within 10%). ____1) What are the Total Current Liabilities at 12/31/04 ? A. $ 69,000 B. $ 99,000 C. $119,000 D. $109,000 E. None of the above __ ___2) What was the debt to equity ratio at the end of 20x4 ? A. 53.00% B. 100%
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C. 33.15% D. 55.43% E. None of these __ ___3) What was the inventory turn for 20x5 ? A. 6.94 Times B. 8.33 Times C. 13.89 Times D. 10.64 Times E. Some other number ____4) What was the book value per share at the end of 20x5 ? A. $ 4.38 B. $ 3.42 C. $ 4.15 D. $ 2.64 E. Some other number 5) Assume the company earned $100,000 for the year ended 12/31/05, what was the ROE? A.
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158_714_second test 2a - 1 THE 2005 SPRING ACCOUNTING TRIBE...

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