THIS IS ALL THE SAME QUESTION WITH DIFFERENT PARTS. I HAVE ANSWERED AND GIVEN TH
ID: 2337672 • Letter: T
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THIS IS ALL THE SAME QUESTION WITH DIFFERENT PARTS. I HAVE ANSWERED AND GIVEN THE NUMBERS BELOW IN THE PICTURES FOR PART ONE BELOW. YOU NEED TO USE PART ONE TO ANSWER PART TWO AND SO ON. THERE ARE FOUR PARTS AND I AM NEEDING HELP WITH PARTS 2, 3, and 4. I HAVE EACH PART MARKED AT THE TOP ON TGE PICTURE. THANKS.
Part One
Part Two
Part Three
Part Four
Use this information for the questions IE-9 through IE-12 IThe following information applies to the questions displayed below Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows: Endless Mountain Company Balance Sheet December 31, 2016 Assets Current assets Cash Accounts receivable (net) Raw materials inventory (4,500 yards) Finished goods inventory (1,500 units) s 46,200 260,000 11,250 32.250 $ 349,700 Total current assets Plant and equipment Buildings and equipment 900.000 Accumulated depreciation Plant and equipment, net Total assets 608,000 $ 957,700 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 158,000 Stockholders' equity Common stock Retained earnings 419,800 379,900 Total stockholders' equity Total liabilities and stockholders equity 799.700 5 957,700Explanation / Answer
2 Required 1 Net Cash provided by operating activities $333,041 We can calculate the net cash provided by operating activities by preparing cash flow from indirect method Required 2 Endless Mountain Company Budgeted Statement of Cash flows For the year ended December 31, 2017 Operating Activities Budgeted Net Income $260,376 Adjustments to convert net income to a cash basis Depreciation $112,000 Net income after adjustment for non cash items $372,376 Changes in Working Capital Decrease in Accounts Receivable 60000 Increase in Raw Material Inventory -1500 Increase in Finished Goods Inventory -10107 Decrease in Accounts Payable -87728 Net cash flow generated/Used from operating activity $333,041 Investing Activities 0 Financing Activities Dividend Paid -60000 Net cash flow generated/Used from financing activity -60000 Net cash flow generated/Used during the year $273,041 Beginning Cash Balance $46,200 Ending cash Balance $319,241 3 Required 1 Working Capital Current Assets - Current Liabilities (574321-70272) 504049 Current Ratio Current Assets/Current Liabilities 574321/70272 8.172828 Required 2 Accounts Receivable Turnover Sales/Accounts Receivable* 2848000/200000 14.24 Average collection period 365/Accounts Receivable turnover 365/14.24 25.63 days Inventory turnover Cost of Goods Sold/Inventory* 1998732/42357 47.19 Average Sale period 365/Inventory turnover 365/47.18 7.74 days Operating Cycle Inventory Period + Accounts Receivable period 25.63+7.74 33.37 days Required 3 Times interest earned ratio Earnings before interest and tax/Interest 260376-9642/9642 26.00 Equity Multiplier Total Assets/Stockholders equity* 1070348/1000076 1.07 Required 4 Net Profit margin percentage Net Income/Sales 260376/2848000 9.14% Return on Equity Net Income/Shareholders Equity* 260376/1000076 26.04% Alternatively, we can use average of 2 years to calculate the ratio, here we can taken only one year data Required 5 1 Working Capital Increase Current Ratio Increase 2 Accounts Receivable Turnover Increase Average collection period Decrease Inventory turnover Increase Average Sale period Decrease 3 Times interest earned ratio Increase Equity Multiplier Decrease 4 Net Profit margin percentage Increase Return on Equity Increase 4 Required 2 Sales $2,848,000 Variable Expenses Direct Materials (10.50*89000) 934500 Direct Labor (4.50*89000) 400500 Variable manufacturing cost (0.25*3*89000) 66750 Variable selling and administrative expense (1.25*89000) 111250 Contribution Margin $1,335,000 Fixed Expenses Fixed Manufacturing Cost 600000 Fixed selling and administrative expenses 468000 Interest 9642 Net Income $257,358
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