AO3 principal of accounting assinment 4

$16.00

Description

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.

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