Ma101 Week 7 Quiz Question 1: Choose The One Alternative Tha

Ma101 Week 7 Quizquestion 1choose The One Alternative That Best Compl

Solve the problem. Prepare a balance sheet for Mullen's Hardware for December 31 of last year. The company assets are cash $15,000, accounts receivable $21,000, and merchandise inventory $95,000. The liabilities are accounts payable $12,000 and wages payable $17,000. The owner's capital is $102,000. Based on these figures, select the correct balance sheet presentation:

  • The assets total $131,000, liabilities total $29,000, and total liabilities and owner's equity total $131,000.
  • The assets total $131,000, liabilities total $12,000, and total liabilities and owner's equity total $131,000.
  • The assets total $95,000, liabilities total $12,000, and owner's capital is $102,000 with total liabilities and owner’s equity at $102,000.
  • The assets total $131,000, liabilities total $17,000, and total liabilities and owner’s equity are $17,000.

Solve the next problem. Conduct a vertical analysis on the balance sheet for Mullen's Hardware for December 31 of last year. The company’s assets are cash $11,000, accounts receivable $40,000, and merchandise inventory $96,000. Liabilities include accounts payable $19,000 and wages payable $25,000. The owner's capital is $103,000. Choose the correct percentage distribution of assets and liabilities:

  • Cash: 7.5%, Accounts receivable: 27.2%, Merchandise inventory: 65.3%; Liabilities: Accounts payable 12.9%, Wages payable 17.0%, Total liabilities 29.9%; Owner's capital 70.1%.
  • Cash: 7.5%, Accounts receivable: 27.2%, Merchandise inventory: 65.3%; Liabilities: Accounts payable 43.2%, Wages payable 56.8%, Total liabilities 100%; Owner's capital 70.1%.
  • Cash: 7.5%, Accounts receivable: 27.2%, Merchandise inventory: 65.3%; Liabilities: Accounts payable 12.9%, Wages payable 17.0%, Total liabilities 29.9%; Owner's capital 70.1%.
  • Cash: 7.5%, Accounts receivable: 27.2%, Merchandise inventory: 65.3%; Liabilities: Accounts payable 12.9%, Wages payable 56.8%, Total liabilities 100%; Owner's capital 70.1%.

Proceed to evaluate Jake's Janitorial Service with a vertical analysis. The assets are cash $20,000, accounts receivable $48,000, merchandise inventory $89,000, and equipment $82,000. The liabilities include accounts payable $13,000, wages payable $16,000, and mortgage note payable $77,000. The owner’s capital is $133,000. Select the correct percentage breakdown:

  • Cash: 8.4%, Accounts receivable: 20.1%, Merchandise inventory: 37.2%, Equipment: 34.3%; Liabilities: Accounts payable 12.3%, Wages payable 15.1%, Mortgage note payable 32.2%; Total liabilities 44.4%; Owner's capital 55.6%.
  • Cash: 8.4%, Accounts receivable: 20.1%, Merchandise inventory: 37.2%, Equipment: 34.3%; Liabilities: Accounts payable 5.4%, Wages payable 6.7%, Mortgage note payable 72.6%; Total liabilities 44.4%; Owner's capital 55.6%.
  • Cash: 8.4%, Accounts receivable: 20.1%, Merchandise inventory: 37.2%, Equipment: 34.3%; Liabilities: Accounts payable 12.3%, Wages payable 15.1%, Mortgage note payable 32.2%; Total liabilities 44.4%; Owner's capital 55.6%.
  • Cash: 8.4%, Accounts receivable: 20.1%, Merchandise inventory: 37.2%, Equipment: 34.3%; Liabilities: Accounts payable 12.3%, Wages payable 15.1%, Mortgage note payable 72.6%; Total liabilities 100%; Owner's capital 55.6%.

Considering TriCounty Nursery's financial data for one month: net sales of $251,000, COGS of $99,000, and operating expenses of $70,000. Calculate the gross profit and net income:

  • Gross profit: $152,000; Net income: $82,000.
  • Gross profit: $72,100; Net income: $29,000.
  • Gross profit: $82,000; Net income: $152,000.
  • Gross profit: $152,000; Net income: $29,000.

Next, evaluate MidState Machinery's sales data: gross sales $4,207,000, returns $68,800, beginning inventory cost $502,000, purchases cost $1,484,000, ending inventory $570,000, and expenses $135,900. Determine net sales and COGS:

  • Net sales: $4,138,200; COGS: $1,416,000.
  • Net sales: $4,138,200; COGS: $2,716,000.
  • Net sales: $4,138,200; COGS: $135,900.
  • Net sales: $4,207,000; COGS: $1,416,000.

Calculate the percentages for the Garden Shop: COGS of $108,000, operating expenses $49,000, and net sales of $272,000. Find the percentage of COGS and operating expenses relative to net sales, rounded to the nearest tenth:

  • Cost of goods sold: 39.7%, Operating expenses: 21.7%.
  • Cost of goods sold: 21.7%, Operating expenses: 39.7%.
  • Cost of goods sold: 18.0%, Operating expenses: 39.7%.
  • Cost of goods sold: 39.7%, Operating expenses: 18.0%.

Compute the beginning inventory percentage of net sales and gross sales percentage of net sales for Speedy Cleaning Service, with beginning inventory of $40,000, net sales of $222,000, and gross sales of $401,000:

  • Beginning inventory: 18.0%; Gross sales: 180.6%.
  • Beginning inventory: 180.6%; Gross sales: 18.0%.
  • Beginning inventory: 65.3%; Gross sales: 18.0%.
  • Beginning inventory: 18.0%; Gross sales: 65.3%.

Finally, analyze the year-over-year change in net sales: last year’s net sales vs. this year’s. Calculate the percent change based on data provided:

  • 10.6% decrease.
  • 10.6% increase.
  • 10.3% increase.
  • 10.3% decrease.

Similarly, for cost of goods sold, determine the percent increase or decrease year over year:

  • 50.8% increase.
  • 7.4% decrease.
  • 50.8% decrease.
  • 7.4% increase.

Lastly, prepare a balance sheet for Jake's Janitorial Service as of December 31 of last year. Assets include cash $16,000, accounts receivable $58,000, merchandise inventory $50,000, and equipment $97,000. Liabilities are accounts payable $23,000, wages payable $22,000, and mortgage note payable $87,000. Owner’s capital is $89,000. Select the correct presentation:

  • Total assets: $221,000; Total liabilities: $110,000; Total liabilities and owner’s equity: $89,000.
  • Total assets: $221,000; Total liabilities: $132,000; Total liabilities and owner’s equity: $89,000.
  • Total assets: $221,000; Total liabilities: $132,000; Total liabilities and owner’s equity: $221,000.
  • Total assets: $124,000; Total liabilities: $132,000; Total liabilities and owner’s equity: $89,000.

Paper For Above instruction

... (The full detailed analysis and calculations follow, carefully addressing each problem, with comprehensive explanations, calculations, and critical analysis based on accounting principles.)

References

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  • Kaplan, R. S., & Norton, D. P. (2004). Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Harvard Business Review, 82(7-8), 52-63.

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