Question: Nemo’s Spas began 2018 with cash

> Tri County Communications, Inc., has the following stockholders’ equity: Requirements 1. Assume the preferred stock is cumulative. Compute the amount of dividends to preferred and common shareholders for 2018 and 2019 if total dividen

> Below are net sales and net income data for a five-year period. Requirements 1. Compute trend percentages for net sales and net income for the five-year period, using year 1 as the base year. Round to the nearest percent. 2. Which grew faster during th

> Trudeau’s Marine, Inc., reported the following selected amounts in its financial statements for the year ended December 31, 2018: Requirement 1. Determine the following for Trudeau’s Marine, Inc., during 2018: a. Co

> The charter for Zealax, Inc., authorizes the company to issue 250,000 shares of $3, no-par preferred stock and 950,000 shares of common stock with $8 par value. During its start-up phase, Zealax, Inc., completed the following transactions: Requirements

> The income statement and additional data of Amalgamated Services, Inc., follow: Additional data: a. Collections from customers are $9,000 more than sales. b. Payments to suppliers are $3,000 more than the sum of cost of goods sold plus advertising expe

> Assume that Pembrook Industries, Inc., has the following data: Net income for 2018 ......................................................................................... $ 104,000 Total stockholder’s equity, 12/31/2018................................

> Century Communications, Inc., began 2018 with 290,000 shares of $1 par common stock issued and outstanding. Beginning Paid-in Capital in Excess of Par—Common was $580,000, and retained earnings was $730,000. In February 2018, Century Communications, Inc.

> At December 31, 2017, Gertner Corp. reported the following stockholders’ equity: During 2018, Gertner Corp. completed these transactions and events in this order: a. Sold 1,300 shares of treasury stock for $42 per share; the cost of t

> Tsongas Manufacturing Co. has the following selected account balances at July 31, 2018: Requirements 1. Prepare the stockholders’ equity section of the company’s balance sheet.

> The financial statements of Motion Auto Repair, Inc., include the following items: Requirement 1. Compute the following ratios for the current year: (a) current ratio, (b) quick ratio, (c) cash conversion cycle, (d) accounts receivable turnover, (e

> Buckeye, Inc., reported the following on its balance sheet at December 31, 2018: 1. Assume Buckeye, Inc., issued all of its stock during 2018 in one transaction. Journalize the company’s issuance of the stock for cash. 2. Was Buckeye,

> Prepare a comparative common-size income statement for P. Donnelly, Inc., using the 2018 and 2017 data of E12-22B. Round percentages to the nearest tenth of a percent. E12-22B: Below is the comparative income statement of P. Donnelly, Inc. Requirement

> The income statement and additional data of Amalgamated Services, Inc., follow: Additional data: a. Acquisition of fixed assets totaled $115,000. Of this amount, $85,000 was paid in cash; a $30,000 note payable was signed for the remainder. b. Proceeds

> Pilgrim Canopies, Inc., reported the following selected amounts in its financial statements for the year ended December 31, 2018: Requirement 1. Determine the following for Pilgrim Canopies, Inc., during 2018: a. Collections from customers b. Payments

> The income statement and additional data of Consolidated Services, Inc., follow: Additional data: a. Collections from customers are $5,000 more than sales. b. Payments to suppliers are $3,000 more than the sum of cost of goods sold plus advertising exp

> The stockholders’ equity for Lakeside Marina, Inc., on December 31, 2017, follows: On January 31, 2018, the market price of Lakeside Marina’s common stock was $20 per share and the company distributed a 10 percent st

> The following elements of stockholders’ equity are adapted from the balance sheet of Sanders Corporation: Requirement 1. Compute the dividends to preferred and common shareholders for 2019 if total dividends are $40,000 in 2019.

> H&K Telecom, Inc., has the following stockholders’ equity: Requirement 1. Assume the preferred stock is cumulative. Compute the amount of dividends to preferred and common shareholders for 2018 and 2019 if total dividends are $15,

> Consider the following comparative income statement and additional balance sheet data for Caitlin Richardson Fashions, Inc. Additional data follow: Requirements 1. For 2017 and 2018, compute the five ratios that measure how a business is investing it

> Compute the following items for the statement of cash flows: 1. The beginning and ending Retained Earnings balances are $52,000 and $73,000, respectively. Net income for the period is $97,000. How much are cash dividends? 2. The beginning and ending net

> The charter for Zelkin, Inc., authorizes the company to issue 200,000 shares of $3, nopar preferred stock and 900,000 shares of common stock with $1 par value. During its start-up phase, Zelkin, Inc., completed the following transactions: Requirements

> The 2018 accounting records of Sullivan, Inc., showed the following: Cash, $14,400; Accounts Receivable, Net, $5,600; Inventory, $23,200; Prepaid Expenses, $2,400; Plant and Equipment, Net, $34,400. Construct a vertical analysis of the asset section of S

> The income statement and additional data of Consolidated Services, Inc., follow: Additional data: a. Acquisition of fixed assets totaled $117,000. Of this amount, $103,000 was paid in cash; a $14,000 note payable was signed for the remainder. b. Procee

> Natalie’s Cleaning, Inc., requested that you perform a vertical analysis of its balance sheet to determine the component percentages of its assets, liabilities, and stockholders’ equity. Round to the nearest tenth of a

> The accounting records of Perry & Associates, Inc., reveal: Net Income ........................................................................................................... $25,000 Depreciation Expense..............................................

> Below is the comparative income statement of Variline, Inc. Requirements 1. Prepare a horizontal analysis of the comparative income statement of Variline, Inc. Round percentage changes to the nearest tenth of a percent. 2. Why did net income increase b

> What were the dollar and percentage changes in Rozzi’s Gift Shop’s net working capital during 2017 and 2018? Is this trend favorable or unfavorable?

> This case focuses on the cash flows of Columbia Sportswear. Recall that inflows and outflows of cash are classified as operating activities, investing activities, or financing activities. The statement of cash flows presents cash flows from each of these

> Crane Corporation was in the process of completing the financial statements for the latest fiscal year. Susan Randal, Crane’s CEO, was reviewing the comparative financial statements and expressed some concerns. In comparing the current year’s income stat

> This problem continues our accounting for Fitness Equipment Doctor, Inc., from Chapter 9. Fitness Equipment Doctor, Inc., has been authorized to sell 100,000 shares of $5 par value common stock and 40,000 shares of $10 par, 15% preferred stock. During th

> In Chapter 11, we prepared a cash flow statement for Fitness Equipment Doctor, Inc. Now, we will analyze Fitness Equipment Doctor, Inc.’s financial statements using the tools we learned in this chapter. Following are Fitness Equipment D

> In this problem, we continue our accounting for Fitness Equipment Doctor, Inc., from Chapter 10. Fitness Equipment Doctor, Inc., is now in its second year of operations. Assume the comparative balance sheet for Fitness Equipment Doctor, Inc., at May 31,

> Sullivan Corp. issued stock above par on July 31. Answer the following questions about Sullivan Corp. 1. Sullivan Corp. received $6 million for the issuance of its stock. The par value of the Sullivan Corp. stock was only $4.5 million. Was the excess amo

> Let’s look again at Dick’s Sporting Goods (Dick’s). Think about Dick’s. How did Dick’s get the money to fund its operations? Return to Dick’s Annual Report and review the financial statements (see the Continuing Financial Statement Analysis Problem in Ch

> Let’s consider Dick’s Sporting Goods (Dick’s) again. Think about Dick’s. How much cash does Dick’s have? What are the sources and uses of Dick’s cash? Return to Dick’s Annual Report and look at the company’s financial statements (see the Continuing Finan

> Let’s look at Dick’s Sporting Goods (Dick’s) one last time. Think about Dick’s and how everything you’ve learned comes together. Think about accountants reporting what Dick’s has, where it got its money, and what it has been doing to create value. Is Dic

> This exercise continues the accounting for Sensations Salon, Inc., from the Continuing Exercise in Chapter 10. Assume Sensations Salon, Inc., had the following comparative balance sheet at the end of 2019, its second year of operations. Requirement 1.

> This exercise continues our accounting for Sensations Salon, Inc., from Chapter 9. In this exercise, we account for the declaration and issuance of a cash dividend by Sensations Salon, Inc. On November 5, 2018, Sensations Salon, Inc., declared a $5,000 c

> Prepare a paper outlining the importance of the statement of cash flows, the details of what is included in each of the three sections of the statement, and how it provides a link between the income statement and the balance sheet.

> Following are selected financial data for your client for the current year and corresponding data for the client’s industry: Requirement 1. Write a memo to your client comparing his or her business to the industry averages, and explai

> Using the information from S12-8, a market price of $34 per share, and 50,000 and 60,000 shares of common stock outstanding in 2017 and 2018, respectively, compute the following for 2018. Round answers to two decimal places. 1. Earnings per share 2. Pric

> The 2018 financial statements for Inland Supply, Inc., show total assets of $572,000, total liabilities of $322,500, net sales of $1,276,000, net income of $191,400, income from operations of $227,600, cost of goods sold of $743,600, dividends of $24,600

> In addition to the information from S12-6, assume that cash on the 2018 balance sheet was $14,000 and current liabilities totaled $25,000. Compute the following ratios for 2018: 1. Current ratio 2. Quick ratio 3. Cash conversion cycle (round to whole day

> The 2017 and 2018 balance sheets for Flores, Inc., showed net accounts receivable of $13,000 and $17,000, respectively; inventory of $12,000 and $9,000, respectively; and accounts payable of $6,000 and $8,000, respectively. The company’s 2018 income stat

> Identify which question each of the ratios below helps answer. 1. Is the business a going concern? 2. How is the business earning a net income or loss? 3. Where is the business getting its money? Can it pay its debt obligations? 4. How is the business in

> You just got off the telephone with one of your clients, who wants to start a new business as a corporation. His question to you concerned the different types of stock that can be issued to the potential stockholders of this new corporation. You explaine

> Match the terms on the right with their definitions on the left: 1. Tells whether a company can pay all its current liabilities if they become due immediately 2. Measures a company’s success in using assets to earn income 3. The practice of comparing a c

> Wolfe, Inc., had net sales of $212,000 and cost of goods sold of $128,000 in 2016; net sales of $263,000 and cost of goods sold of $161,000 in 2017; and net sales of $325,000 and cost of goods sold of $200,000 in 2018. 1. Find the percentage of increase

> In 2018, common stockholders received $6 per share in annual dividends. The market price per share for common stock was $24. Compute the dividend yield for common stock.

> Use the statement of stockholders’ equity in Exhibit 10-8 to answer the following questions: 1. Make journal entries to record the declaration and payment of cash dividends during 2018. 2. How much cash did the issuance of common stock

> Trident Equipment’s accountants assembled the following data for the year ended April 30, 2018. Prepare Trident Equipment’s statement of cash flows for the year ended April 30, 2018, using the indirect method. The ca

> Use the Inland Medical Supply, Inc., data in S11-10 to compute the following amounts for 2018: 1. Borrowing or payment of long-term notes payable, assuming Inland had only one long-term note payable transaction during the year 2. Issuance of common stock

> Use the Inland Medical Supply, Inc., data in S11-10 to compute the amount of fixed assets acquired by Inland Medical Supply, Inc., assuming Inland sold no fixed assets in 2018. S11-10: Inland Medical Supply, Inc., reported the following financial statem

> Inland Medical Supply, Inc., reported the following financial statements for 2018: Requirement 1. Use the information in Inland Medical Supply, Inc.’s financial statements to compute the following: a. Collections from customers b. Pa

> Juarez Equipment, Inc., assembled the following data related to its cash transactions for the year ended June 30, 2018: Payment of dividends.......................................................................................... $ 16,000 Proceeds from

> You manage a small but growing business, like the Bold City Brewery. However, unlike the Bold City Brewery, your business has numerous stockholders. The company just completed its fiscal year, and the annual meeting is just a few weeks away. Your company

> The accounting records for Haskins Steel, Inc., for the year ended June 30, 2018, contain the following information: a. Purchase of fixed assets for cash, $97,400 b. Proceeds from issuance of common stock, $45,000 c. Payment of dividends, $47,400 d. Coll

> The 2018 comparative balance sheet and income statement of Bone Appetit Pet Supply, Inc., are: Bone Appetit Pet Supply, Inc., had no noncash investing and financing transactions during 2018. During the year, Bone Appetit Pet Supply, Inc., sold no land

> Data from the comparative balance sheet of Stevenson Building Materials, Inc., at July 31, 2018, follow: Stevenson Building Materials, Inc.’s transactions during the year ended July 31, 2018, included: Requirements 1. Prepare Steven

> Bannen Office Machines, Inc.’s accountants assembled the following selected data for the year ended December 31, 2018: Requirement 1. Prepare Bannen Office Machines, Inc.’s statement of cash flows using the indirect

> The balance sheet of Avery Hardware, Inc., at December 31, 2017, reported 700,000 shares of $3 par common stock authorized, with 95,000 shares issued and outstanding. Paid-in Capital in Excess of Par—Common had a balance of $320,000. Re

> Ralston Sports Corporation completed the following selected transactions during 2018: Requirement 1. Record the transactions in the journal.

> Zeranski Consulting, Inc., has 12,000 shares of $5.00, no-par preferred stock and 60,000 shares of no-par common stock outstanding for 2016–2018. Zeranski declared and paid the following dividends during a three-year period: 2016, $23,000; 2017, $115,000

> Cascade Inn, Inc., included the following stockholders’ equity on its year-end balance sheet at December 31, 2018: Requirements 1. Identify the different issues of stock Cascade Inn, Inc., has outstanding. 2. Give the two entries to r

> Cutter Furniture, Inc., was organized in 2017. At December 31, 2017, Cutter Furniture, Inc.’s balance sheet reported the following stockholders’ equity Requirement Answer the following questions and make journal entr

> You have been hired as an investment analyst at McNeice Securities, Inc. It is your job to recommend investments for your client. You have the following information for two different companies. Write a memo to your client recommending the company you b

> You own a business like the Bold City Brewery. You just returned from a meeting with your bank loan officer, and you were a little taken aback by his comments. You’ve been doing business with this bank for a number of years, and the off

> Identify whether each of the following items would be classified as: • Income from continuing operations (C) • Income from discontinued operations (D) _______ a. $12,000 insurance proceeds on a fully depreciated piece of equipment that was lost in a hurr

> For a skewed distribution, what is the minimum percentage of the observations that will lie within 2 standard deviations of the mean based on Chebyshev’s rule? a) 68% b) 75% c) 95% d) 99.7% 16. For a skewed distribution, what is the minimum percentage of

> The heights of four fifth grade students are 58, 56, 60 and 62 inches. What are the mean, median and standard deviation of this dataset, and the standard deviation of the new dataset by adding 2 to each number, i.e., 60, 58, 62, 64? a) 59, 58, 2.58 and 4

> Which of the following descriptive measure is not a statistic? a) Sample mean b) Population mean µ c) Sample standard deviation s d) Sample variance s2 e) Sample median 5. To study the impact of advertising on various market segments, marke

> The payoffs of a decision analysis problem are the payments to decision makers. 2. When it is uncertain which of the states of nature will occur and also the probability of each state of nature occurring is unknown, the scenario is referred to as decisio

> Reengineering is the approach to revise or redo the engineering design of a product in response to customer complaints.

> Chi-square goodness-of-fit tests are always one-tailed tests. 2. A chi-square goodness-of-fit test can be used as an alternative to z-test for population proportions if there are only two classifications. 3. A chi-square test of independence can be used

> In a one-way ANOVA the total variance is portioned into the variance due to treatments and the variance due to error. 2. A repeated measures design is a special case of the randomized block design.

> To test if the means of two populations are different, we test the significance of the difference between two sample means. 2. The distribution of the difference between two sample means may be considered to be normally distributed only if the two popula

> What is the relative frequency of type B in the previous question? a) 0.25 b) 0.35 c) 0.5 d) 0.64 29. In sciences and technology, use of pie charts is limited compared to other types of graphs such as a histogram, because __________. a) It is difficult

> A null hypothesis must always include the equality sign. 2. If the result of a hypothesis test is statistically significant, it must be considered a substantive result. 3. The null hypothesis is rejected if the p-value (i.e., the probability of getting a

> A statistic taken from a sample that is used to estimate a population parameter is called a point estimate. 2. An interval estimate is a range of values around the point estimate. 3. The width of the confidence interval does not depend on the desired le

> Systematic sampling is an example of random sampling which is often used because of its convenience and ease of administration. 2. Missing data and recording errors are examples of sampling error. 3. If a population is normal distributed, the means of th

> An exponential distribution, which is continuous, is closely related to the Poisson distribution, which is discrete.

> Binomial distribution applies only to experiments in which the trials are done with replacement or successive trials are independent. 2. A hypergeometric distribution is used in situations where the sampling is done from an infinite population and the s

> If two events with non-zero probabilities are mutually exclusive, they cannot be statistically independent. 2. The probability of the union of two events is always equal to the sum of the marginal probabilities of two independent events. 3. The joint pro

> An advantage of the median instead of using mean as the measure of central tendency is that it is not affected by extremely large or extremely small values in the data set. 2. The median and the second quartile of a data set are always equal. 3. Dependin

> Frequency distribution is a summary of data presented in the form of class intervals and frequencies. 2. Data that have been organized into a frequency distribution are called ungrouped data. 3. The sum of the frequencies of a grouped data set is always

> Virtually every area of business uses statistics in decision making. 2. The highest level of data measurement is the ratio-level measurement. 3. Since statistics deals with primarily with facts and figures, ethical considerations do not play any role in

> One strategy that can be used in making decisions under risk is the ___________. a) Expected monetary value approach b) Maximax risk criterion c) Minmax risk strategy d) Minimax regret strategy e) Maximax regret strategy 26. In a capacity expansion decis

> A histogram is vertical bar chart on an X-Y plane, in which the labels along horizontal (or X) axis represent the class end points and the bars along the vertical (or Y) axis show the ____. a) Class width b) Class range c) Class frequency d) Class mid-

> An approach to decision making under uncertainty that is based on a weighted combination of the maximum and the minimum payoffs from each alternative is called the _____________. a) Maximin criterion b) Maximax criterion c) Hurwicz criterion d) Minimax r

> The payoffs of a decision analysis problem are_______________________. a) The various choices or options available to the decision maker in any given problem situation. b) The occurrences of nature that can happen after a decision is made that can affect

> Consider two products, A and B. The quality of A is determined by the characteristic, its weight. The quality of B is determined by the characteristic, whether it is acceptable or not. Which of the following statements is true? a) Quality characteristics

> Many times in the implementation of quality improvement techniques, it is useful to explore the relationship between two numerical variables (e.g., the strength of steel bars and the carbon content of steel). A graphical mechanism to explore such relatio

> A major stumbling block to studying and implementing quality improvement methodologies is that __________. a) Quality is a hindrance to production b) Quality means different things to different people c) Customers care about price and not quality d) Prod

> Consider the data set in the table below, use the Wilcoxon Matched-Pairs Signed-Ranks Test to calculate the test statistic, and the test statistic is __________. a) 28 b) 24 c) 4 d) −24 22. The nonparametric alternative to the one-way

> In the Mann-Whitney U test using two large samples (i.e., size greater than 10), the decision to reject the null hypothesis that the two populations are identical versus the alternative hypothesis that they are not identical is taken by __________. a) Ca

> The administrator of a large university wants to test if students elected to a large student council were randomly selected from its two campuses, east (E) and west (W). A sequence of 26 consecutive students sampled showed the following pattern: E E E E

> The test used to analyze the frequencies of two variables with multiple categories to determine whether the two variables are independent is __________. a) The F-test b) The chi-square goodness-of-fit test c) The chi-square test of independence d) Binomi

> A business analyst wants to use the chi-square goodness-of-fit test if a uniform distribution is a good fit for the following observed frequencies in eight categories along a single dimension. The desired level of significance is 0.05. The correct decis

> Given a small dataset: 2.3, 7.1, 6.3, 5.8, 4.2, what is the range for this data? a) 1.9 b) 2.5 c) 4.8 d) 2.3 10. A useful tool for grouping data is __________. a) A frequency distribution b) Group dynamics c) Segmentation d) Constructive statistics 11

> A firm believes that the distribution of the economic class of its customers is 25%, 50%, and 25% in the three possible categories (i.e., lower income class, middle-income class, or upper income class). To test if this belief is true, data from a random