Reference no: EM132452337
Problem 1 - For the FY 2016, Alpha Company's balance sheet included the following current items: cash $40,000, accounts receivable $160,000, inventories $100,000, prepaid expenses $20,000, accounts payable $90,000, and accrued expenses $70,000. Use this information to determine the:
1. Quick Ratio
2. Current Ratio
2. Working Capital
Problem 2 - For the FY 2016, Alpha Company had net sales of $950,000 and net income of $55,000, paid income taxes of $25,000, and had before tax interest expense of $10,000. Use this information to determine the:
1. Times Interest Earned Ratio
2. Profit Margin
Problem 3 - The following financial information is for Alpha Corporation are for the fiscal years ending 2017 & 2016 (all balances are normal):
|
Item/Account
|
2017
|
2016
|
|
Accounts Receivable
|
$9,800
|
$9,400
|
|
Inventory
|
25,000
|
16,000
|
|
Net Sales (all credit)
|
80,000
|
71,000
|
|
Cost of Goods Sold
|
49,000
|
52,000
|
|
Net Income
|
7,200
|
6,900
|
Use this information to determine for FY 2017:
1. The inventory turnover ratio
2. Number of days of inventory
3. Gross Profit Margin
4. Profit Margin
Problem 4 - The following financial information is for Alpha Corporation are for the fiscal years ending 2017 & 2016 (all balances are normal):
|
Item/Account
|
2017
|
2016
|
|
Accounts Receivable
|
$9,800
|
$9,400
|
|
Inventory
|
20,000
|
16,000
|
|
Net Sales (all credit)
|
72,000
|
71,000
|
|
Cost of Goods Sold
|
54,000
|
52,000
|
|
Net Income
|
7,200
|
6,900
|
Use this information to determine for FY 2017:
1. The accounts receivable turnover ratio
2. Average collection period accounts receivable
3. Gross Profit Margin
4. Profit Margin
Problem 5 - Alpha's net accounts receivable were $500,000 at December 31, 2015, and $600,000 at December 31, 2016. Net cash sales for 2016 were $200,000. The accounts receivable turnover for 2016 was 5.0. Use this information to determine the Fiscal Year 2016:
1. Total Net Sales
2. Total Net Credit Sales
Problem 6 - The following financial information is for Alpha Corporation are for the fiscal years ending 2017 & 2016 (all balances are normal):
|
Item/Account
|
2017
|
2016
|
|
Cash
|
$26,000
|
$16,000
|
|
Accounts Receivable
|
40,000
|
50,000
|
|
Inventory
|
30,000
|
22,000
|
|
Current Liabilities
|
76,000
|
42,000
|
|
Net Sales (all credit)
|
390,000
|
360,000
|
|
Cost of Goods Sold
|
250,000
|
260,000
|
Use this information to determine for FY 2017:
1. The inventory turnover ratio
2. Number of days of inventory
3. Gross Profit Margin
Problem 7 - The following financial information is for Alpha Corporation are for the fiscal years ending 2017 & 2016 (all balances are normal):
|
Item/Account
|
2017
|
2016
|
|
Cash
|
$26,000
|
$16,000
|
|
Accounts Receivable
|
40,000
|
50,000
|
|
Inventory
|
30,000
|
22,000
|
|
Current Liabilities
|
76,000
|
42,000
|
|
Net Sales (all credit)
|
390,000
|
360,000
|
|
Cost of Goods Sold
|
260,000
|
250,000
|
Use this information to determine for FY 2017:
1. The Accounts Receivable turnover ratio
2. Average Accounts Receivable collection period
3. Gross Profit Margin
Problem 8 - The following financial information is for Alpha Corporation are for the fiscal years ending 2017 & 2016 (all balances are normal):
|
Item/Account
|
2017
|
2016
|
|
Cash
|
$26,000
|
$16,000
|
|
Accounts Receivable
|
40,000
|
50,000
|
|
Inventory
|
30,000
|
22,000
|
|
Current Liabilities
|
76,000
|
42,000
|
|
Net Sales (all credit)
|
390,000
|
360,000
|
|
Cost of Goods Sold
|
260,000
|
250,000
|
Use this information to determine the quick ratio for FY 2017?
Problem 9 - The following financial information is for Alpha Corporation are for the fiscal years ending 2017 & 2016 (all balances are normal):
|
Item/Account
|
2017
|
2016
|
|
Cash
|
$26,000
|
$16,000
|
|
Accounts Receivable
|
40,000
|
50,000
|
|
Inventory
|
30,000
|
22,000
|
|
Current Liabilities
|
50,000
|
42,000
|
|
Net Sales (all credit)
|
390,000
|
360,000
|
|
Cost of Goods Sold
|
260,000
|
250,000
|
Use this information to determine for FY 2017:
1. The Current Ratio
2. Working Capital
Problem 10 - Alpha's Company's Fiscal Year 2017 Statement of Cash Flows reflected information that cash provided by operating activities was $800,000. The following additional information was provided:
|
Depreciation Expense
|
$380,000
|
|
Common Stock Dividends
|
200,000
|
|
Accounts Receivable increase
|
110,000
|
|
Accounts Payable decrease
|
60,000
|
Use this information and determine Alpha Company's the Net Income (Net Loss) the 2017 Fiscal Year.
Problem 11 - Alpha's Company's Fiscal Year 2017 Statement of Cash Flows reflected information that cash provided by operating activities was $800,000. The Fiscal Year 12/31/17 Balance Sheet showed the value of Retained Earnings to be $625,000. The following additional information was provided:
|
Depreciation Expense
|
$380,000
|
|
Common Stock Dividends
|
200,000
|
|
Accounts Receivable increase
|
110,000
|
|
Accounts Payable decrease
|
60,000
|
Use this information and determine Alpha Company's:
a. The Net Income (Net Loss) the 2017 Fiscal Year.
b. The beginning balance for Retained Earnings.
Problem 12 - The following information is related to Alpha Company's fiscal year 2017.
Income Statement:
Net Income $3,000,000
Depreciation Expense 500,000
Gain on Sale of Plant Assets 25,000
Interest Expense 5,000
Balance Sheet - 12/31/17: Increase (Decrease)
Accounts Payable ($40,000)
Plant Assets - Purchased 250,000
Plant Assets - Disposals (100,000)
Additional Information:
Common Stock exchanged for outstanding Long Term Notes Payable of $125,000
Dividends paid were $30,000
Use this information to prepare a partial Statement of Cash Flows for Alpha Company. Prepare only the section related to Cash Flows from Operating Activities.
Problem 13 - The following information is related to Alpha Company's fiscal year 2017.
Income Statement:
Net Income $3,000,000
Depreciation Expense 500,000
Gain on Sale of Plant Assets 50,000
Interest Expense 5,000
Balance Sheet - 12/31/17: Increase (Decrease)
Accounts Payable ($40,000)
Plant Assets - Purchased 250,000
Plant Assets - Disposals (100,000)
Additional Information:
Common Stock exchanged for outstanding Long Term Notes Payable of $125,000
Dividends paid were $30,000
Use this information to determine Alpha Company's Net Cash Flows from Investing Activities.
Problem 14 - The following information is related to Alpha Company's fiscal year 2017.
Income Statement:
Net Income $3,000,000
Depreciation Expense 500,000
Gain on Sale of Plant Assets 50,000
Interest Expense 5,000
Balance Sheet - 12/31/17: Increase (Decrease)
Accounts Payable ($40,000)
Plant Assets - Purchased 250,000
Plant Assets - Disposals (100,000)
Additional Information:
Common Stock exchanged for outstanding Long Term Notes Payable of $145,000
Dividends paid were $25,000
Use this information to determine Alpha Company's Net Cash Flows from Financing Activities.