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Accounting Miscellaneous Problems

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Question;8. Royce Company is considering the purchase of some new equipment that will cost the company $180000. The equipment is estimated to have a 3 year life and no savage value. The equipment is expected to generate the cash inflows described below over the life of the equipment. Royce?s cost of capital is 10%Cash inflows in year 1 $110000Cash inflows in year 2 $105000Cash inflows in year 3 $95000The NPV of the investment in the equipment is:9. Companies acquire funds from three sources. Which of the following is not one of the sources?- Owners Contributions- Earnings generated by the company- Debt- Bankruptcy10. Sage, Rosemary and Thyme are partners in the Music Company. Their partnership income sharing agreement provides that Sage and Thyme are to receive salary allowances of $29700 and $16800 respectively and that any remaining income or loss is to be divided equally among all partners. If the company?s income was $39000, Thyme?s share would be:11. Boston Corp. just issued 10000 shares of $par value common stock for $9 per share. The journal entry to record this transaction is:12. The journal entry to record the declaration of a cash dividend is: 13. Julia Enterprises owns some equipment with an original cost of $120800 and accumulated depreciation of $50800. If the equipment is sold for $78500 in cash, the entry to record this event is:14. The journal entry to record a payment on an installment note would look like:15. Robinson Industries purchased a copier system with a cost of $57000 and a salvage of $5000. It was expected that the copier would last for four years. Calculate the depreciation expense at the end of year 1 using straight line method:16. Comprehensive income includes all of the following except:17. Which of the following statement is true? Earnings per share 18. Match each of the following accounts to its proper balance sheet classifications. USE OOE for other owner?s equity items that are not contributed capital or retained earnings1. Goodwill2. Mortgage Payable3. Benefit Pension Plans4. Bonds, Payable due within one year5. Deferred Charges6. Investment in Kolinchak, Inc.7. Accounts Receivables8. Mining Property9. Treasury Stock10. Common stockOL: Other LiabilitiesPPE: Property Plant and Equipment: CL: Current Liabilities: INT: Intangibles: INV: Investments: CC: Contributed Capitals: CA: Current Asset: LTL: Long- Term Liabilities: OOE: Other Owner?s Equity: OA: Other Assets:20. The total of the operating, investing and financing sections of the Statement of Cash Flows is equal to the change in cash from one Balance sheet date to another is true21. Which of the following is not the primary purpose of the statement of cash flows?22. A variety of transactions follow: Identify each transaction as on operating, investing, financing event1. Purchases a building for $1200002. Sold $50000 of common stock3. Borrowed $50000 on a long term notes payable4. Collected $67000 on accounts receivable5. Paid $20000 on accounts payable6. Sold $100000 of land and building23. Wolff enterprises generated $657830 of cash flows from operating activities, used $55670 of cash flows in its investing activities and received $32540 of cash flows from financing activities during the fiscal year. Its weighted average common shares outstanding were $500000 ad it has no preferred stock. What is Wolf?s cash flow per share?24. If sales for 2012 and 2011 were $924000 and $880000, respectively then the percentage change shown in a horizontal analysis would be:25. Krishna Imports has total shareholders? equity of $1298000 on September 30. The company issues only no-par common stock and had 300000 shares outstanding on that date. During the fiscal year September 30, the company earned net income of $186600 and paid dividends totaling $67800. The stock was selling for $15 per share. Compute the Earnings per share

 

Paper#41936 | Written in 18-Jul-2015

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