Chapter 5:
1. Lewis Inc. had the following information taken from various accounts for 2015:
What was Lewis Inc.'s net revenues in 2015?
$368,000.
$434,000.
$383,000.
$437,000.
2. On July 8, Ray Inc. sold 100 printers to Office Rental Company at $600 eac
CASH BUDGET
HOMEWORK HANDOUT PROBLEM
Modern Company has developed the following estimates for the month of July:
Cash Sales
Credit Sales
Depreciation Expense
Wages
Merchandise Purchases
Various Expenses
$20,000
10,000
3,000
4,000
6,000
5,000
Modern Compan
Spartan Technology Company
CH:12-30
Total initial investment compared to present value of cash flows.
Initial investment:
Land and equipmentWorking CapitalInitial investment-
$120,000
$55,000
$175,000
When figuring out the present value of cash flows, we
Block 15e
Pr 12-1
Problem 12-1 Cash flow [LO2]
Assume a corporation has earnings before depreciation and taxes of $90,000, depreciation of $40,000, and that it is in
a 30 percent tax bracket. Compute its cash flow using the following format. (Input all an
Block 15e
Pr 11-3
Problem 11-3 Effect of discount rate [LO3]
A brilliant young scientist is killed in a plane crash. It is anticipated that he could have earned
$240,000 a year for the next 50 years. The attorney for the plaintiffs estate argues that the
Block 15e
Pr 10-2
Problem 10-2 Bond value [LO3]
Midland Oil has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 25 years. Use
Appendix B and Appendix D for an approximate answer but calculate your final answer using the
Block 15e
Pr 9-1
Problem 9-1 Future value [LO2]
You invest $3,000 for three years at 12 percent.
a. What is the value of your investment after one year? Multiply $3,000 1.12.
b. What is the value of your investment after two years? Multiply your answer to
Block 15e
Pr 8-1
Problem 8-1 Cash discount [LO1]
Compute the cost of not taking the following cash discounts. (Use a 360-day year. Do not round intermediate
calculations. Input your final answers as a percent rounded to 2 decimal places.)
All input values
Block 15e
Pr 7-1
Problem 7-1 Cost-benefit analysis of cash management [LO2]
City Farm Insurance has collection centers across the country to speed up collections. The company also makes its
disbursements from remote disbursement centers so the firm's chec
Block 15e
Pr 8-1
Problem 8-1 Cash discount [LO1]
Compute the cost of not taking the following cash discounts. (Use a 360-day year. Do not round intermediate
calculations. Input your final answers as a percent rounded to 2 decimal places.)
All input values
CPA REVIEW SCHOOL OF THE PHILIPPINES
Manila
MANAGEMENT ADVISORY SERVICES
RELEVANT COSTING
THEORY
1. In the development of accounting data for decision-making, relevant costs are
A. Historical costs which are the best available basis for estimating future
MANAGEMENT INFORMATION SYSTEM
1.
A.
B.
C.
D.
Accounting systems are designed to
analyze and interpret information
allow managers to manage by exception
provide information required to support decisions
record and report business transactions
2. Which is n
CPA REVIEW SCHOOL OF THE PHILIPPINES
Manila
MANAGEMENT ADVISORY SERVICES
FINANCIAL STATEMENT ANALYSIS
THEORY
1. When a balance sheet amount is related to an income statement amount in computing a ratio,
a. The income statement amount should be converted t