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A03 Principles of Accounting II assisgnment 8

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Question;ASSIGNMENT 08;A03 Principles of Accounting II;Part A (5 points each for a possible;total of 15 points);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;(1);The;cash flow from operating activities is ________.;(2);The;cash flow from investing activities is ________.;(3);The;cash flow from financing activities is ________.Part B (5 points each for a possible;total of 25 points);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;Compute the following;(1);Current ratio for Year 2.;(2);Acid-test ratio for Year 2.;(3);Accounts receivable turnover for Year;2.;(4);Average collection period for Year 2.;(5);Inventory turnover for Year 2.Part C (30 points);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

 

Paper#51302 | Written in 18-Jul-2015

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