Accounting Quiz Solution

Accounting Quiz Solution - INTRODUCTION TO BUSINESS M...

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Unformatted text preview: INTRODUCTION TO BUSINESS M ACCOUNTiNG QUIZ ADMiN. 11005130?) WINTER 2010 PROF; Peter Koppel Quiz Dumiion: 1 ham 20 minutes instructions: 1.) Answer each questien in {he space providad. 2.) Show ail of your werk. 3.) Use of a calculator i3 permitmd; memory must be erased. QUESTION #1 QUESTION #2 QUESTION #3 QUESTION #4 QUESTION #5 TOTAL {K LAST NAME: (1316386 prim) Vi éfgimfiz FERST NAME: {pleasa prim} STUBENT NEEfiBER: Questian I: Breakeven W631: Anaiygis Yau are gixsen the faiigwing data: Mammy lease expefise 589808.813 Seiling price per unit $18130 Wages per 11:11? pmduced $3.50 Annual saiaries 31253388136 Annuai rent expanse $14,400.08 Gverhead cos? per unit praduced $5.50 Raw materials cast pfif unit produced $4.69 a) How many units need {0 be preduced to 31:16.35: breakeven? (I 0 marks) 3?: €15; fl _. ; W 23% *éfiiffi , v r r if} fi§§gfi g; éégw 5»: Q ioyg: {33%; W émwgfijiw “:1 9 in? i“ “a”; C A K ale? 5%“ $33; flfwéwiiém i373» fig 34?» :1 6%: E 511%; 2&5: 5% b) Using Q16 above inforrnati0n2 draw a breakeven diaam and properly lab€1 all appropriate points. (5 marks) @245? uésg O V, 3 " gag E $3? g (2:. 7 3:1 (:5, L§§33$§€§ CE} v iémm @ma% agfi %% c} If variabie aegis increase £3}; 26% anti the seiiing prise increases by 43%, whai are {he campany’s annuai fixed C031??? {3 marks} w M, a f? f“! ( M ,, “fl ' my, ‘65 5 mafia a» ‘7‘» "a. «Iv 5 s «w. "a; «9% $52?“ {"2 Ekk “gm W E :«éi flaw; A Question 2: Economic Order Quantity You are given tha fellewing data far the ABC Cmporatian: Cost per unit: $180.00 Ammal demand far good: ’iSGfiGf} units Cost $0 glass an order: $43.00 Ariana} cosi ti} carry inventory: 18% a) Giwn the abeve data? what is the Economic Qrder Quantity? (4 marks} b) If ABC Cameratien decides to order in 10 equal insiailments instead of using the E.O.Q., what would be the annual costs to the company? (8 marks) Swag @wfifi k 6% “3% L @fifi g g z as: “§ 9f ’ » ,, / Ar ‘ 6a - 3 41,3 ” r f z g f L! 9% M“ Wm W r 4‘ AWMMMMWMWMVW _ , w/WM.,.MJ c) If ABC 11363 the Eccnomic Ordar Quantity, whatr weuld be the annual costs to the campany‘? {8 marks) é E; at» “WM/Wafi/Iswm H A? fi-M-MWMM Questicm 3: Balance Shset Prepare a balancg sheet far DE}? Corporatien as :3? December 31 3 233%? using 2316 ibilewing appmpriaie informaiian. {20 marks) _ W Cash $142, 509 *1 Retained Earnings $249§ega figsefui Life of building 10 years if; Imes‘imems $1,4993508 Vfiegaid 6x13613363 $131,660 ,' ~ ‘ V Camera Stock $5,005,000 V Land $1,480,,fii3i} 5 Taxes E’ayable $450389 xvi Goodwill $249,090 accamts payabie $190,09G '25: Baildings $1G?{300,£}G{} 3*; WageS payabie $1,4GGgGQG zgi’ghhyies, receivabie Emlfifii} "JMarketabie securities $131 12309 glnwgegaflmrigs _ $1,986JQQQQN gNotes payable $65,686 ' :11 w H ‘3??? 3"“? :stefui life of equipment 10 years V8653? Payable $850§009 News payable (due in 2018) 7,450,000 3«5533,;(2{3:313:13 reggiygfiwfifiwégggm ‘9' Interest Payabie $50,601:} {XMqugipfififfiw Wm 39030903} ‘5 Age of equipment as of Dec. 31/ {)6 6 years M WMWWM a; Age of buildings as of Dec, 31/96 3 years x“ g u {3% itflgégm 52325:: i} 9:» ‘ s ?‘%~§xm¢ 3 Hag} a? z y 7 3 3‘31 A %Q E i: {3 “Egg éfié W22} § "fig: age; agar; fag) 2, M?“ g ’- § _ “‘“r magi} 23:3 3% gfi? 353%; @535} “my; gs Qyfifi 2 my; £ fig? £32733 3 5% W?“§'§¢:5 {$23391}- fi‘ _ $52; 22 iii}? g C flgQ¥§ ém :1? ~52 a; ’ g i a C35); ‘3); gift“? W WWW WW [A i a”; 3; mi 2 g {Ema 3% mi; 5:2 “X; “W ----w~szfww Questien 4: Income Statement “3501; are given the faliowiflg data. Prepare an Inc-01130 Siatement for XYZ Corparaiion fer the year @0000 December 31? 2005. H Tax rate 25% a? Sales returns $1,000,000 ‘0" 160333 Sales $20,000,000 0:300, 1., 2005 Envenmry $1,475,000 gig Other Expenseg $300,000 ‘ ii 7" ‘: ' ‘ “it? ""1"":1‘! £12012: expense $180, 0 i 111g ’ a ,V :1” Other Inceme $700,000 (20 marks} EIf?urcl’laseé; $400,000 Delivery Expense $15,000 Adventisng Expense $220,000 ’WWWWW 0" Dec. 31, 2005 Inventory $300,000 E’fSalarieg Expense $500003000 “Cammissiens $1 ,400,000 Visage Expense 32200000 03¢; fgiyéigfi $000000 2: {'3 0:30:03 73.5% 0. g 03$?“ £00000 i“? g 00$: Mi @033 y?» ‘5: 505300 $30,735:; 0, 3 E ,0 0, WM W: s» {1% 50 3?"; K» ff“ - :s g a i i“ may fWK Questien 5: Accounting Raties Given the {chewing data, prepare the ratios as required as 0f December 31, 2003. Please 5110?? the femuia fer each ratie as part ofyeur answer (20 marks} Taxes Payable 700,000 Acets. PayabIe 500,000 Aeeeents reeeivabie 3,000,000 Mki. Securities 700,000 Sales 28,000,000 Common Sieek 8,000,000 Retained Earnings 1,500,000 Net income 4,000,000 Notes ?ayable 3,000,000 Inventory (Dec.31,"05) 5,000,000 Invent;le (3311,}, ’0‘?) 2,000,000 Purchases 10,000,000 Sales Expense 450,000 Cash 2,000,000 Prepaid expenses 540,000 a) Inventory Turnover ( ; #52 i “' 1 , / r W m, I , (fit, I ,i z; 5 3 _ x » «Z; 1 $322, , 1:; E: {agig ’ w ' _ Mg ; b) Acid Test (Quick) Ratio {1,0 ,, m- £fie€ e ,aee, ‘3, gigng 35 "3m , g , 3‘“ » Lg am WNW, f K c) Average Collection Peried (AIR Turnover) , “a “we, , e * ‘ A . we xx]; e WWW (1%} Reign} er; ineestment 5”“; ’g f g L“? {5:62 “wifi " "W «W -,. 3 E“ E, i, éfiéy a ...
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This note was uploaded on 12/09/2010 for the course TELFER ADM 1300 taught by Professor Peterkoppel during the Spring '10 term at University of Ottawa.

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Accounting Quiz Solution - INTRODUCTION TO BUSINESS M...

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