Comparative financial statement data for Duran Corporation and Kiepert

Comparative financial statement data for duran

This preview shows page 6 - 7 out of 7 pages.

6.Comparative financial statement data for Duran Corporation and Kiepert Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2012.Requirements: (a) Comment on the relative profitability of the companies by computing the net income and earnings per share for each company for 2012.(b) Comment on the relative liquidity of the companies by computing working capital and the current ratios for each company for 2012.(c) Comment on the relative solvency of the companies by computing the debt to total assets ratio and the free cash flow for each company for2012.7.ABC Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period.July 1-Established petty cash fund by writing a check on STT Bank for $205.00July 15-Replenished the petty cash fund by writing a check for $201.20. On this date, the fund consisted of $3.80 in cash and the following petty cash receipts: freight-out $92.10, postage expense $40.80, entertainment expense $48.80, and miscellaneous expense $18.23.July 31-Replenished the petty cash fund by writing a check for $197.00. At this date, the fund consisted of $8.00 in cash and the following petty cash receipts: freight-out $80.30, charitable contributions expense $45.10, postage expense $34.30, and miscellaneous expense $37.30.
Image of page 6
Aug. 15-Replenished the petty cash fund by writing a check for $191.10. On this date, the fund consisted of $13.90 in cash and the following petty cash receipts: freight-out $77.00, entertainment expense $41.10, postage expense $34.20, and miscellaneous expense $40.20.Aug. 16-Increased the amount of the petty cash fund to $305.00 by writing a check for $100.00.Aug. 31- Replenished petty cash fund by writing a check for $287.10. On this date, the fund consisted of $17.90 in cash and the following petty cash receipts: postage expense $138.20, travel expense $96.10, and freight-out $51.40.Journalize the petty cash transactions.8.The ledger of Custer Company has the following work in process account.Work in process- Painting5/1Balance 3,5905/31Transferred out 5/31Materials 5,1605/31Labor 2,7405/31Overhead 1,3805/31Balance Production records show that there were 400 units in the beginning inventory, 30% complete, 1,400 units started, and 1,500 units transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Requirements: 1. How many units are in process at May 31?2. What is the unit materials cost for May?3. What is the unit conversion cost for May?4. What is the total cost of units transferred out in May? 5. What is the cost of the May 31 inventory? ? ?
Image of page 7

You've reached the end of your free preview.

Want to read all 7 pages?

  • Summer '17
  • javed
  • Business, Income Statement, petty cash fund, Harris Co., Rivera Sportswear

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture