Final\u00a0 Part 2\t\t\t\t\t\t\t\t\tQuestion 1\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA manager of a cost center is evaluated mainly on\t\t\t\t\t\t\t\t\tQuestion 2 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tBogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%.\t\t\t\t\t\u00a0\t\t\t\t\tSales \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 $ 1,400,000\t\t\t\t\tControllable margin \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 160,000\t\t\t\t\tTotal average assets \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 4,000,000\t\t\t\t\tFixed costs \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0100,000\t\t\t\t\t\u00a0\t\t\t\t\tWhat is the ROI for the year?\t\t\t\t\t\t\t\t\tQuestion 3 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tRatios are used as tools in financial analysis\t\t\t\t\t\t\t\t\tQuestion 4 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich of the following is not typically a characteristic experienced by a company during the growth phase of the corporate life cycle?\t\t\t\t\t\t\t\t\tQuestion 5\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA master budget consists of\t\t\t\t\t\t\t\t\tQuestion 6 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe date on which a cash dividend becomes a binding legal obligation is on the\t\t\t\t\t\t\t\t\tQuestion 7 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tIf there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 410,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?\t\t\t\t\t\t\t\t\tQuestion 8 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tAll of the following statements regarding changes in accounting principles are true except which of the following?\t\t\t\t\t\t\t\t\tQuestion 9 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tOn the basis of the budget reports,\t\t\t\t\t\t\t\t\tQuestion 10 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tHolden Packaging Corporation began business in 2014 by issuing 80,000 shares of $5 par common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2014 balance sheet, Holden Packaging would report\t\t\t\t\t\t\t\t\tQuestion 11 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe primary purpose of the statement of cash flows is to\t\t\t\t\t\t\t\t\tQuestion 12\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tCochran Corporation, Inc. has the following income statement (in millions):\t\t\t\t\t\t\t\t\tCOCHRAN CORPORATION, INC.\t\t\t\t\t\t\t\t\tIncome Statement\t\t\t\t\t\t\t\t\tFor the Year Ended December 31, 2014\t\t\t\t\t\t\t\t\t\t\t\t\t\tNet Sales \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd $240\t\t\t\t\tCost of Goods Sold \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 80\t\t\t\t\tGross Profit \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0160\t\t\t\t\tOperating Expenses \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 65\t\t\t\t\tNet Income \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 $\u00a0 95\t\t\t\t\t\u00a0\t\t\t\t\tUsing vertical analysis, what percentage is assigned to net income?\t\t\t\t\t\t\t\t\tQuestion 13\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures.\t\t\t\t\t\u00a0\t\t\t\t\tTotal asset \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0 $400,000\t\t\t\t\tStockholders’ equity”\ufffdcommon \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0 200,000\t\t\t\t\tTotal stockholders’ equity\u00a0\u00a0\u00a0\u00a0 \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0280,000\t\t\t\t\tSales revenue \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 120,000\t\t\t\t\tNet income \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd 25,000\t\t\t\t\tNumber of shares of common stock \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 8,000\t\t\t\t\tCommon dividends \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 9,000\t\t\t\t\tPreferred dividends \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0 6,000\t\t\t\t\t\u00a0\t\t\t\t\tWhat is Marsh’s payout ratio?\t\t\t\t\t\t\t\t\tQuestion 14 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA flexible budget\t\t\t\t\t\t\t\t\tQuestion 15 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA comparison with other companies that provides insight into a company’s competitive position is most commonly known as which of the following types of comparisons?\t\t\t\t\t\t\t\t\tQuestion 16\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tAssume the following sales data for a company:\t\t\t\t\t\u00a0\t\t\t\t\t2015 \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 $910,000\t\t\t\t\t2014 \ufffd \ufffd \ufffd \ufffd \u00a0\u00a0\u00a0\u00a0$770,000\t\t\t\t\t2013 \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0 700,000\t\t\t\t\t\u00a0\t\t\t\t\tIf 2013 is the base year, what is the percentage increase in sales from 2013 to 2014?\t\t\t\t\t\t\t\t\tQuestion 17 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tLaser Performance Inc. has the following information available (amount in thousands).\t\t\t\t\t\u00a0\t\t\t\t\tNet Income\u00a0\u00a0\u00a0 \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0$30,000\t\t\t\t\tAverage Total Liabilities \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 80,000\t\t\t\t\tAverage Current Liabilities \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd 36,000\t\t\t\t\tCash Provided by Operations \ufffd \ufffd \ufffd \ufffd \ufffd 48,000\t\t\t\t\tCash Sales \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0 130,000\t\t\t\t\tCapital Expenditures \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0 22,000\t\t\t\t\tDividends Paid \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd 6,000\t\t\t\t\t\u00a0\t\t\t\t\tWhat is the current cash debt coverage?\t\t\t\t\t\t\t\t\tQuestion 18\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich of the following income statement figures would probably be the best indicator of a company’s future performance?\t\t\t\t\t\t\t\t\tQuestion 19 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich one of the following is not a benefit of budgeting?\t\t\t\t\t\t\t\t\tQuestion 20\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe single most important output in preparing financial budgets is the\t\t\t\t\t\t\t\t\tQuestion 21 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tZoum Corporation had the following transactions during 2014:\t\t\t\t\t\u00a0\t\t\t\t\t1 – Issued $125,000 of par value common stock for cash.\t\t\t\t\t2 – Recorded and paid wages expense of $60,000.\t\t\t\t\t3 – Acquired land by issuing common stock of par value $50,000.\t\t\t\t\t4 – Declared and paid a cash dividend of $10,000.\t\t\t\t\t5 – Sold a long-term investment (cost $3,000) for cash of $3,000.\t\t\t\t\t6 – Recorded cash sales of $400,000.\t\t\t\t\t7 – Bought inventory for cash of $160,000.\t\t\t\t\t8 – Acquired an investment in Zynga stock for cash of $21,000.\t\t\t\t\t9 – Converted bonds payable to common stock in the amount of $500,000.\t\t\t\t\t10 – Repaid a 6 year note payable in the amount of $220,000.\t\t\t\t\t\u00a0\t\t\t\t\tWhat is the net cash provided by operating activities?\t\t\t\t\t\t\t\t\tQuestion 22\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA critical factor in budgeting for a service firm is to\t\t\t\t\t\t\t\t\tQuestion 23 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tIf the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to\t\t\t\t\t\t\t\t\tQuestion 24 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich one of the following items is not necessary in preparing a statement of cash flows?\t\t\t\t\t\t\t\t\tQuestion 25 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tQuincy Corp. earned controllable margin of $500,000 on sales of $6,400,000. The division had average operating assets of $5,200,000. The company requires a return on investment of at least 8%. How much is residual income?<\/p>\n","protected":false},"excerpt":{"rendered":"
Final\u00a0 Part 2 Question 1 \u00a0 A manager of a cost center is evaluated mainly on Question 2 \u00a0 Bogey Co. recorded operating data for its Cheap division for the year. Bogey requires its return to be 10%. \u00a0 Sales Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200186","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200186"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200186\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}