AC 202 Study guide 12.14,15, 16

AC 202 Study guide 12.14,15, 16 - MONTGOMERY COLLEGE...

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MONTGOMERY COLLEGE Business, Science, Mathematics and Technology Division Germantown Campus AC 202 Principles of Accounting II Chapters 12, 14, & 15 Review sheet 1. Condensed financial data for Vytech Corporation are given below. VYTECH CORPORATION Comparative Balance Sheet December 31 2 Assets Cash $ 78, Accounts receivable 39, Inventory 100, Land 720, Equipment 488, Accumulated depreciation (45,0 Total assets $1,380, Liabilities and Stockholders' Equity Accounts payable $ 52, Accrued expenses payable 21, Bonds payable 575, Common stock 674, Retained earnings 58, Total liabilities and stockholders' equity $1,380, Additional information for 2005: 1. A cash dividend of $15,000 was declared and paid during the year. 2. Additional equipment was purchased for cash. 3. Land was acquired by issuing common stock. 4. Operating expenses include depreciation expense. 5. Accounts payable pertain to purchases of merchandise. 6. Accrued expenses payable pertain to operating expenses exclusive of depreciation. (Make sure to compute depreciation expense) Instructions: Prepare a statement of cash flows for 2005 using the indirect method. 1. Which of the following would not be included in the operating activities section of a statement of cash flows? A) Cash inflows from returns on loans (i.e., interest)
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B) Cash inflows from returns on equity securities (i.e., dividends) C) Cash outflows to governments for taxes D) Cash outflows to reacquire treasury stock 2. Which of the following combinations presents correct examples of liquidity, solvency and profitability ratios respectively? Liquidity Solvency A) Inventory turnover Times interest earned Inve B) Current ratio Debt to total assets Inve C) Receivables turnover Times interest earned Ret D) Quick ratio Return on assets 3. All of the following are profitability ratios except the A) asset turnover ratio. B) times interest earned ratio. C) price earnings ratio. D) payout ratio. 4. Period costs would include A) direct labor. B) direct materials. C) indirect manufacturing costs. D) selling and administrative costs. Use the following to answer questions 9-12: Raw materials inventory, January 1 $ 10,000 Raw materials inventory, December 31 15,000 Work in process, January 1 9,000 Work in process, December 31 5,000 Finished goods, January 1 16,000 Finished goods, December 31 20,000 Raw materials purchases 600,000 Direct labor 230,000 Factory utilities 75,000 Indirect labor 25,000 Factory depreciation 200,000 Selling and administrative expenses 210,000 5. Direct materials used is
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A) $630,000. B) $610,000. C) $600,000. D) $595,000 6. Assume your answer to question 6 above is $600,000. Total manufacturing costs equal A) $1,130,000. B) $1,127,000 c) $1,030,000. D) $1,340,000. 7.
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This note was uploaded on 11/08/2011 for the course AC 201 taught by Professor Peterson during the Fall '11 term at Montgomery College.

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AC 202 Study guide 12.14,15, 16 - MONTGOMERY COLLEGE...

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