Questions from Accounting Principles

Q: Sunn Co. manufactures a single product that sells for $180

Sunn Co. manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The company’s annual fixed costs are $562,500. Compute (a) contribution margin per unit,...

Q: Match the definitions 1 through 6 with the phrase a through f

Match the definitions 1 through 6 with the phrase a through f. 1. Helps determine financing needs. 2. The usual starting point in the master budget process. 3. A report that shows predicted revenues a...

Q: Use the following comparative figures for Apple and Google. /

Use the following comparative figures for Apple and Google. Required 1. Compute the basic EPS for each company using these data. 2. Compute the dividend yield for each company using these data. 3. Com...

Q: Zisk Co. purchases direct materials on credit. Budgeted purchases are

Zisk Co. purchases direct materials on credit. Budgeted purchases are April, $80,000; May, $110,000; and June, $120,000. Cash payments for purchases are: 70% in the month of purchase and 30% in the fi...

Q: Motors Corp. manufactures motors for dirt bikes. The company requires

Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement at a cost of 2% inter...

Q: Fortune Inc. is preparing its master budget for the first quarter

Fortune Inc. is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are budgeted at 150,000 for the first quarter. Cost o...

Q: Walker Company prepares monthly budgets. Company policy is to end each

Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 15% of budgeted unit sales for the following month. Budgeted sales and merchandise purc...

Q: Ahmed Company purchases all merchandise on credit. It recently budgeted the

Ahmed Company purchases all merchandise on credit. It recently budgeted the month-end accounts payable balances below. Cash payments on accounts payable during each month are expected to be June, $1,4...

Q: Lamonte Co. reports the following budgeted December 31 adjusted trial balance

Lamonte Co. reports the following budgeted December 31 adjusted trial balance. Prepare the budgeted income statement for the current year ended December 31. Ignore income taxes.

Q: Use the budgeted information in Exercise 22-28, and the

Use the budgeted information in Exercise 22-28, and the ending year balance of Retained Earnings of $78,000 on December 31, to prepare Lamonte Co.’s budgeted balance sheet as of December 31.