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AO3 principal of accounting assinment 4

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solution


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Question;The following information is;given for Tripp Company, which uses the indirect method.;Net;income $20,000;Depreciation;expense 3,000;Increase;in accounts receivable 2,000;Payment;of dividends 2,000;Proceeds;from sale of equipment 6,000;Increase;in accounts payable 4,000;Decrease;in inventory 3,000;From the information provided;answer the following questions;a) The cash flow from operating;activities is ________.;b) The cash flow from investing;activities is ________.;c) The cash flow from financing;activities is ________.;Part B;Selected;data for Stick's Design are given as of December 31, Year 1 and Year 2 (rounded;to the nearest hundredth).;Year 2 Year 1;Net Credit Sales $25,000 $30,000;Cost of Goods Sold 16,000 18,000;Net Income 2,000 2,800;Cash 5,000 900;Accounts Receivable 3,000 2,000;Inventory 2,000 3,600;Current Liabilities 6,000 5,000;Required;Compute the following;a.;Current ratio for Year 2.;b.;Acid-test ratio for Year 2.;c.;Accounts receivable turnover for Year 2.;d.;Average collection period for Year 2.;e.;Inventory turnover for Year 2.;Part C;Prepare an income statement;showing departmental contribution margin based on the following;Dept.;X Dept. Y Rent Expense;Space;(square feet) 17,500 35,000;Net;Sales $60,000 $ 40,000;Cost;of Goods Sold 18,000 16,000;Rent Expense;(allocated based on square feet) $2,700;Dept.;X Dept. Y Total;Part D;From the following transactions;prepare the appropriate general journal entries for the month of April.;1. Raw materials costing $60,000;were issued from the storeroom.;2. Direct labor of $53,000 was;charged to production.;3. Indirect labor costs of;$17,000 were incurred.;4. Overhead was applied at the;rate of 40% of direct labor dollars.;5. Completed products costing;$42,000 were transferred to finished goods.;6. Products costing $32,000 were;sold.

 

Paper#43149 | Written in 18-Jul-2015

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