CHAPTER 1: INTRODUCTION
1. Based on the following, compute total owners' equity.
Total noncurrent liabilities
CHAPTER 10: DIVISIONAL PERFORMANCE
1. The following information is available about the status and operations of A-Klop
Company, which has a minimum required ROI of 15%. ANSWER EACH ITEM
INDEPENDENTLY OF THE OTHERS.
CHAPTER 9: RESPONSIBILITY
1. The following data are for Billings Stores, which has two stores and one service
Percentage of services used in current year
Expected long-term use of services
CHAPTER 8: CAPITAL BUDGETING
1. Stockholm Company is considering the sale of a machine with the following
Remaining useful life
Annual straight-line depreciation
Current market value
CHAPTER 6: OPERATIONAL AND
1. Ballan Inc. estimates its units sales for the coming months to be as follows:
Ballan maintains inventory at budgete
CHAPTER 4: ACTIVITY-BASED COSTING
1. Scottso Enterprises incurs $300,000 in manufacturing overhead costs each month.
The company has been allocating overhead to individual product lines based on
direct labor hours.
CHAPTER 5: SHORT-TERM DECISIONS
AND ACCOUNTING INFORMATION
1. Wilson Company expects the following results, without considering any of the
changes described below.
CHAPTER 2: PROFIT PLANNING
1. Foris Company's product sells for $16 and has a variable cost per unit of $12. Fixed
costs are $120,000.
a. Compute the break-even point in dollars.
b. Compute the number of units Foris must sell to earn a $30,000 pr
CHAPTER 7: CAPITAL BUDGETING
1. An investment opportunity costing $180,000 is expected to yield net cash flows of
$60,000 annually for five years.
a. Find the NPV of the investment at a cutoff rate of 12%.
b. Find the payback peri
CHAPTER 3: COST ANALYSIS
1. Carlson Company incurred $170,000 in overhead costs making 12,000 units in
March. It made 15,000 units and incurred $188,000 in overhead costs in April.
a. Compute the variable component of overhead cost.
b. Find the f