<p>Please check my work: Thank you</p> <p> </p> <p>2. Motorcycle Manufactur
ID: 2385632 • Letter: #
Question
<p>Please check my work: Thank you</p><p> </p>
<p>2. Motorcycle Manufacturers, Inc. projected sales of 76,000 machines for 2010. The estimated January 1, 2010, inventory is 6,500 units, and the desired December 31, 2010, inventory is 7,000 units. What is the budgeted production (in units) for 2010?<br /><br />a. 75,500<br />b. 66,000<br /><span>c.</span> 76,500<br />d. 65,000<br />Answer: c</p>
<p>Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 98,000 units, and desired ending inventory is 80,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.</p>
<p> </p>
<p>Material A   .50 lb. per unit @ $ .60 per pound</p>
<p>Material B 1.00 lb. per unit @ $1.70 per pound</p>
<p>Material C 1.20 lb. per unit @ $1.00 per pound</p>
<p> </p>
<p>6.        The dollar amount of direct material B used in production during the year is:</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="18" valign="top">
<p><span>a.</span></p>
</td>
<td width="405" valign="top">
<p>$1,057,400   (640,000 +80,000-98,000 =622,000 x1x1.7= $1,057,400</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>b.</p>
</td>
<td width="405" valign="top">
<p>$1,193,400</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>c.</p>
</td>
<td width="405" valign="top">
<p>$1,026,800</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>d.</p>
</td>
<td width="405" valign="top">
<p>$1,224,000</p>
</td>
</tr>
</tbody>
</table>
<p>7.        The dollar amount of direct material C used in production during the year is:</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="18" valign="top">
<p><span>a.</span></p>
</td>
<td width="405" valign="top">
<p>$746,400  (640,000 +80,000-98,000 =622,000 x1.2x1= $764,400)</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>b.</p>
</td>
<td width="405" valign="top">
<p>$724,800</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>c.</p>
</td>
<td width="405" valign="top">
<p>$824,400</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>d.</p>
</td>
<td width="405" valign="top">
<p>$758,160</p>
</td>
</tr>
</tbody>
</table>
<p>8.        Production and sales estimates for March for the Robin Co. are as follows:</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="360" valign="top">
<p>Estimated inventory (units), March 1</p>
</td>
<td width="72">
<p>18,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Desired inventory (unit), March 31</p>
</td>
<td width="72">
<p>20,300</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p> </p>
</td>
<td width="72">
<p> </p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Expected sales volume (units):</p>
</td>
<td width="72">
<p> </p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>  Area M</p>
</td>
<td width="72">
<p>7,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>  Area L</p>
</td>
<td width="72">
<p>8,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>  Area O</p>
</td>
<td width="72">
<p>9,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Unit sales price</p>
</td>
<td width="72">
<p>$15</p>
</td>
</tr>
</tbody>
</table>
<p> </p>
<p>The number of units expected to be manufactured in March is:</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="18" valign="top">
<p>a.</p>
</td>
<td width="405" valign="top">
<p>22,000  </p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>b.</p>
</td>
<td width="405" valign="top">
<p>1,800</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>c.</p>
</td>
<td width="405" valign="top">
<p>26,300</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p><span>d.</span></p>
</td>
<td width="405" valign="top">
<p>21,700   (7,000+8,000+9,000= 22,000 – (20,300-18,00) = 21,700)</p>
</td>
</tr>
</tbody>
</table>
<p>9.        The budget that summarizes future plans for the acquisition of fixed assets is the:</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="18" valign="top">
<p>a.</p>
</td>
<td width="405" valign="top">
<p>direct materials purchases budget</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>b.</p>
</td>
<td width="405" valign="top">
<p>production budget</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>c.</p>
</td>
<td width="405" valign="top">
<p>sales budget</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p><span>d.</span></p>
</td>
<td width="405" valign="top">
<p>capital expenditures budget</p>
<p>Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $260,000, $350,000, and $400,000, respectively, for September, October, and November. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale, 20% in the month following the sale, and the remainder in the following month.</p>
</td>
</tr>
</tbody>
</table>
<p>10.      The cash collections in September from accounts receivable are:</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="18" valign="top">
<p>a.</p>
</td>
<td width="405" valign="top">
<p>$223,600</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p><span>b.</span></p>
</td>
<td width="405" valign="top">
<p>$145,600</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>c.</p>
</td>
<td width="405" valign="top">
<p>$192,000</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>d.</p>
</td>
<td width="405" valign="top">
<p>$168,000</p>
</td>
</tr>
</tbody>
</table>
<p>11.      An analysis in which all the components of an income statement are expressed as a percentage of net sales is called</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="18" valign="top">
<p><span>a.</span></p>
</td>
<td width="405" valign="top">
<p>vertical analysis</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>b.</p>
</td>
<td width="405" valign="top">
<p>horizontal analysis</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>c.</p>
</td>
<td width="405" valign="top">
<p>liquidity analysis</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>d.</p>
</td>
<td width="405" valign="top">
<p>common-size analysis</p>
</td>
</tr>
</tbody>
</table>
<p>12.      One reason that a common-size statement is a useful tool in financial analysis is that it enables the user to</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="18" valign="top">
<p>a.</p>
</td>
<td width="405" valign="top">
<p>Judge the relative potential of two companies of similar size in different industries.</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>b.</p>
</td>
<td width="405" valign="top">
<p>Determine which companies in a single industry are of the same value.</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>c.</p>
</td>
<td width="405" valign="top">
<p>Determine which companies in a single industry are of the same size.</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p><span>d.</span></p>
</td>
<td width="405" valign="top">
<p>Make a better comparison of two companies of different sizes in the same industry.</p>
</td>
</tr>
</tbody>
</table>
<p>13.      Horizontal analysis is a technique for evaluating financial statement data</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="18" valign="top">
<p>a.</p>
</td>
<td width="405" valign="top">
<p>For one period of time.</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p><span>b.</span></p>
</td>
<td width="405" valign="top">
<p><span>Over a period of time.</span></p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>c.</p>
</td>
<td width="405" valign="top">
<p>On a certain date.</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>d.</p>
</td>
<td width="405" valign="top">
<p>As it may appear in the future.</p>
</td>
</tr>
</tbody>
</table>
<p>14.      Assume the following sales data for a company:</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="48" valign="top">
<p> </p>
</td>
<td width="107" valign="top">
<p>2010</p>
</td>
<td width="120" valign="top">
<p>$1,017,000</p>
</td>
</tr>
<tr>
<td width="48" valign="top">
<p> </p>
</td>
<td width="107" valign="top">
<p>2009</p>
</td>
<td width="120" valign="top">
<p>565,000</p>
<p> </p>
</td>
</tr>
</tbody>
</table>
<p>What is the percentage increase in sales from 2009 to 2010?</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="18" valign="top">
<p>a.</p>
</td>
<td width="405" valign="top">
<p>100%</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p><span>b.</span></p>
</td>
<td width="405" valign="top">
<p><span>80%  (1,017,000 -565,000 = 452,000 /565,000 = .8 =80%)</span></p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>c.</p>
</td>
<td width="405" valign="top">
<p>180%</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>d.</p>
</td>
<td width="405" valign="top">
<p>44.4%</p>
<p>........................................................................</p>
</td>
</tr>
</tbody>
</table>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="360" valign="top">
<p>Accounts payable</p>
</td>
<td width="36" valign="top">
<p>$  30,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Accounts receivable</p>
</td>
<td width="36" valign="top">
<p>65,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Accrued liabilities</p>
</td>
<td width="36" valign="top">
<p>7,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Cash</p>
</td>
<td width="36" valign="top">
<p>20,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Intangible assets</p>
</td>
<td width="36" valign="top">
<p>40,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Inventory</p>
</td>
<td width="36" valign="top">
<p>72,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Long-term investments</p>
</td>
<td width="36" valign="top">
<p>100,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Long-term liabilities</p>
</td>
<td width="36" valign="top">
<p>75,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Marketable securities</p>
</td>
<td width="36" valign="top">
<p>36,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Notes payable (short-term)</p>
</td>
<td width="36" valign="top">
<p>20,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Property, plant, and equipment</p>
</td>
<td width="36" valign="top">
<p>625,000</p>
</td>
</tr>
<tr>
<td width="360" valign="top">
<p>Prepaid expenses</p>
</td>
<td width="36" valign="top">
<p>2,000</p>
</td>
</tr>
</tbody>
</table>
<p> </p>
<p>   15.   Based on the above data, what is the amount of quick assets?</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="20" valign="top">
<p>a.</p>
</td>
<td width="441" valign="top">
<p>$163,000</p>
</td>
</tr>
<tr>
<td width="20" valign="top">
<p>b.</p>
</td>
<td width="441" valign="top">
<p>$195,000</p>
</td>
</tr>
<tr>
<td width="20" valign="top">
<p><span>c.</span></p>
</td>
<td width="441" valign="top">
<p>$121,000 ( <span>20,000 + 65,000 + 72,000 + 36,000 + 2,000 = 195,000then 195,000 - 72,000 - 2000 = <span>121,000)</span></span></p>
</td>
</tr>
<tr>
<td width="20" valign="top">
<p>d.</p>
</td>
<td width="441" valign="top">
<p>$56,000</p>
</td>
</tr>
</tbody>
</table>
<p>16.      Based on the above data, what is the amount of working capital?</p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="18" valign="top">
<p>a.</p>
</td>
<td width="405" valign="top">
<p>$238,000</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p><span>b.</span></p>
</td>
<td width="405" valign="top">
<p><span>$138,000</span></p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>c.</p>
</td>
<td width="405" valign="top">
<p>$178,000</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>d.</p>
</td>
<td width="405" valign="top">
<p>$64,000</p>
</td>
</tr>
</tbody>
</table>
<p>17.      An acceleration, in the collection of receivables will tend to cause the accounts receivable turnover to </p>
<table border="0" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td width="18" valign="top">
<p>a.</p>
</td>
<td width="399" valign="top">
<p>decrease</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p><span>b.</span></p>
</td>
<td width="399" valign="top">
<p>remain the same</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>c.</p>
</td>
<td width="399" valign="top">
<p>either increase or decrease</p>
</td>
</tr>
<tr>
<td width="18" valign="top">
<p>d.</p>
</td>
<td width="399" valign="top">
<p>increase</p>
</td>
</tr>
</tbody>
</table>
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