Question 1 - Alpha Company has the following account balances information for fiscal year 2015 & 2016 (all balances are normal):
|
Alpha Company
|
|
December 31
|
|
Accounts
|
2016
|
2015
|
|
Merchandise Inventory
|
$1,200,000
|
$800,000
|
|
Office Supplies
|
25,000
|
20,000
|
|
Sales
|
3,000,000
|
2,500,000
|
|
Cost of Goods Sold
|
2,000,000
|
1,600,000
|
|
Freight Out
|
15,000
|
10,000
|
What is the FY 2016 inventory turnover ratio? Enter the answer as a number rounded to one decimal place followed by a space and the word times. (Example 1.123 would be entered 1.1 times)
Question 2 - The following are selected account balances for Charlie Company's operations for the FY ended December 31, 2016. (All balances are normal):
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Accounts
|
Amount
|
|
Net Sales
|
$100,500
|
|
Administrative Expenses
|
22,000
|
|
Selling Expenses
|
12,000
|
|
Cost of Goods Sold
|
46,000
|
|
Interest Expense
|
2,000
|
|
Income Tax Expense
|
1,000
|
|
Prepaid Expenses
|
$5,000
|
|
Interest Receivable
|
$1,000
|
What is the Net Profit on Sales ratio for the year 2016? (Enter the value as a percentage rounded to one decimal place. Example, 0.105134 would be entered as 10.5%)
Question 3 - The following is a partial Adjusted Trial Balance for Alpha Company for the month:
|
Alpha Company
|
|
Adjusted Trial Balance (partial)
|
|
January 31, 2016
|
|
Accounts
|
Debit
|
Credit
|
|
Inventory
|
$2,750
|
|
|
Sales
|
|
$12,500
|
|
Sales Discounts
|
200
|
|
|
Sales Returns & Allowances
|
1,200
|
|
|
Purchases
|
4,000
|
|
|
Purchases Discounts
|
|
150
|
|
Purchase Returns & Allowances
|
|
450
|
|
Freight In
|
50
|
|
|
Advertising Expense
|
150
|
|
|
Depreciation Expense
|
145
|
|
|
Freight Out
|
70
|
|
|
Income Tax Expense
|
500
|
|
|
Salaries Expense
|
500
|
|
|
Utilities Expense
|
100
|
|
Additionally, Inventory for December 31, 2015 was $2,700. Prepare a multiple-step income statement.
What amount should Alpha Company report on a Multi-Step Income Statement for the following items:
1. Net Sales
2. Cost of Goods Available for Sales
3. Gross Profit
4. General & Administrative Expenses
5. Income before Taxes
Question 4 - Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016:
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Date
|
Activity
|
Quantity
|
Unit Price
|
|
5/1
|
Beginning Inventory
|
175
|
$10
|
|
5/5
|
Purchase
|
200
|
$12
|
|
5/15
|
Purchase
|
300
|
$15
|
|
5/25
|
Purchase
|
150
|
$16
|
Sales were 545 units at $25. Using the FIFO method, determine the dollar values following for the month of May:
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold
Question 5 - Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: (Round all per unit calculations to the nearest penny.)
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Date
|
Activity
|
Quantity
|
Unit Price
|
|
5/1
|
Beginning Inventory
|
100
|
$10.10
|
|
5/5
|
Purchase
|
200
|
$11.15
|
|
5/15
|
Purchase
|
300
|
$13.00
|
|
5/25
|
Purchase
|
150
|
$15.00
|
Sales were 545 units at $25.00. Using weighted-average method, determine the dollar values following for the month of May: (Enter only whole dollar values.)
1. Ending Inventory
2. Cost of Goods Available for Sale
3. Cost of Goods Sold