Assignment 6 (final assignment)_Due Monday May 7 at 11 pm

(Textbook: Chapter7, 13, 14)

Please upload your typed answers on Moodle

Please answer the following question from end of Chapter 7:

PE 7-5, PE7-6, PE7-7, PE7-8, PE7-9, PE7-10, PE7-11, E7-34, E 7-35

Please answer the following question from end of Chapter 13:

PE 13-12, E 13-22, E13-31

Please answer the following question from end of Chapter 14:

E14-33, E14-40, E14-42, E14-54

Chapter 7

7-5

250 tables on account for $150 each

Perpetual Inventory:
Inventory….37, 500
Accounts Payable…37,500

Periodic Inventory:
Purchases…37, 500
Accounts Payable…37,500

7-6

$920 in shipping costs for purchases in 7-5

Perpetual Inventory:
Inventory….920
Cash…920
Periodic Inventory:
Freight In…920
 Cash…920

7-7

20 tables returned
Perpetual Inventory:
Accounts Payable…3000
Inventory…….3000

Periodic Inventory:
Accounts Payable…3000
Purchase Return…3000

7-8

Perpetual Inventory:
Accounts Payable…34,500
Inventory…690
Cash………33,810
Periodic Inventory:
Accounts Payable…34,500
Purchase Discount…690
Cash………………..33,810

7-9

Sold 70 tables on account for $200 each

Perpetual Inventory:

Accounts Receivable…14,000
Revenue……………..14,000
CoGS…………………10,500
Inventory……………..10,500

Periodic Inventory:

Accounts Receivable…14,000
Revenue…………….14,000
7-10

Perpetual Inventory:
Sales Returns…1200
Accounts Receivable…1200
Inventory……..900
Cost of Goods Sold….900

Periodic Inventory:
Sales Returns…1200
Accounts Receivable…1200

7-11

?????

7-34

Calculate CoGS and ending inventory balances for November using FIFO/LIFO

FIFO: 3600 ring a 1200 ring b 1650 ring c

CoGS = 3600+1200+1650 = 6450
Ending Inventory Balance= Total inventory – CoGS + new purchases = 19650-6450 + (4*600 +
2*450 + 5*300) = 18000

LIFO: 6*650 ring a 3*450 + 350 ring b 8*250 ring c

CoGS: 7600
Ending Inventory Balance = 19650-7600+5800 = 17850

7-35

a. FIFO:
CoGS: 54000
Ending Inventory: 96100
b. LIFO
CoGS: 63500
Ending Inventory: 86600
c. Average Cost
CoGS: 57730.76
Ending Inventory: 92369

Chapter 13

13-12

Net Income ()
+Noncash Expenses ()
-gains from non-operating activities ()
+loss from non-operating activities ()
+Decrease in noncash current assets
-Increase in noncash current assets
+Increase in current liabilities
-Decrease in current liabilities
= Operating Activities Cash Flow

5909
+4503
-32500
-386
-4540
+355
(26659)
13-22
+48750 Net increases in cash
13-31
Net increase +146500

Chapter 14

14-33

Compute the following:

1. Debt ratio = (Total liabilities/Total assets) = 51000/126000
2. Current ratio = (Current assets/Current liabilities) = 36000/28000
3. Return on sales = (Net income/Sales) = 17000/300000
4. Asset turnover = (Sales / Total or average assets) = 300000/126000
5. Return on equity = (Net income/Owners equity) = 17000/75000
6. Price-earnings ratio = (Market share price / EPS (net income/# of outstanding shares)) = ???

14-40

1. CoGS = 60,000
2. NI = 125,000
3. OE = 60,000
4. IT = ???
14-42

1. RoE
2010 = .16
2011 = .34
2012 = .58

2. RoS
2010 = .02
2011 = .04
2012 = .07

3. Asset Turnover
2010 = 4
2011 = 4.44
2012 = 4.5

4. Assets-to-equity
2010 = 2
2011 = 1.8
2012 = 1.83

14-54

1. Cashflow/net income ratio

2011 = 1.78
2012 = 3.06

2. Cash Flow Adequacy ratio

2011 = .95
2012 = .86