MBA560 Financial and Managerial Accounting Module 5 Test (2 Problems)

MBA560 Financial and Managerial Accounting
Module 5 Test (2 Problems)

Problem 1.
The following information applies to Barnhart Company: Assets Cash 5,000 Accounts Receivable 12,000 Inventory 15,000 Plant and equipment, net of depreciation 20,000 Land 18,000 Total Assets 70,000 Liabilities & Stockholders' Equity Accounts payable 4,000 Salaries payable 9,000 Bonds payable (due 2020) 11,000 Capital stock, 20 no par 22,000 Retained earnings 24,000 Total Liabilities & Stockholders' Equity 70,000 Additional information: Net Credit Sales = $220,000 Beginning Accounts Receivable = $10,000

Required:
1) Compute Barnhart's:
a) Quick ratio
b) Current ratio
c) Working capital
d) Accounts receivable turnover
e) Average days to collect receivables

Problem 2.
The Jiffy Manufacturing Company started operations in 2012 when it acquired $100,000 from its owners. During the year, the company incurred the following costs: Raw materials used 40,000 Labor 50,000 Overhead 20,000 Selling & Administrative costs 30,000 The company placed 12,000 units into production, completed 10,000 units, and sold 8,000 units. The average selling price was $17 per unit.

Required:
1) Prepare a schedule of cost of goods manufactured and sold for the year ended December 31, 2012.
2) Prepare an income statement for the year ended December 31, 2012.
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