151. On the basis of the following data for Larson Co. for the year ending December 31, 2011 and the preceding year ended December 31, 2010, prepare a statement of cash flows.  Use the indirect method of reporting cash flows from operating activities.  In addition to the balance sheet data, assume that:Equipment costing $125,000 was purchased for cash.  Equipment costing $85,000 with accumulated depreciation of […]

  147. Bonavita Inc. is considering a capital investment proposal that costs $227,500 and has an estimated life of four years and no residual value. The estimated net cash flows are as follows:  Year Net Cash Flow 1 $97,500 2 $80,000 3 $60,000 4 $40,000     The minimum desired rate of return for net present value analysis is 10%. The present value of $1 at […]

  11) What is the amount of fixed overhead allocated to production? A) $51,060 B) $50,500 C) $50,600 D) $55,500 12) What is the fixed overhead spending variance? A) $560 unfavorable B) $100 favorable C) $100 unfavorable D) $560 favorable   Answer the following questions using the information below:   Sport-in Corporation manufactured 10,000 golf bags during April. The following fixed overhead data pertain to […]

  76.Two investment centers at Marshman Corporation have the following current-year income and asset data:  InvestmentCenter AInvestmentCenter B Investment center income$415,000$525,000 Investment center average invested assets$2,400,000$1,950,000 The return on investment (ROI) for Investment Center B is:     A. 371.4% B. 26.9% C. 24.1% D. 39.2% E. 21.7% 77.A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expense totaled $50,000 for […]

  75. A subsidiary ledger:  A. Includes transactions not covered by special journals. B. Is a listing of all of the accounts of a business. C. Is a listing of individual accounts and amounts with a common characteristic. D. Is also called a general ledger. E. Is also called a special journal. 76. A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n):  A. Controlling account. […]

  45.Design Services is organized as a limited partnership, with Miko Toori as one of its partners. Miko’s capital account began the year with a balance of $35,000. During the year, Miko’s share of the partnership income was $7,500, and Miko received $4,000 in distributions from the partnership. What is Miko’s partner return on equity?    A.10.2% B.22.7% C.19.5% D.20.4% E.21.4% 46.The following information is available […]

  Multiple Choice Questions  67.The costs of bringing a corporation into existence, including legal fees, promoter fees, and amounts paid to obtain a charter are called:    A.Minimum legal capital. B.Stock subscriptions. C.Organization expenses. D.Selling expenses. E.Prepaid fees. 68.The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is called a:    A.Preemptive right. B.Proxy right. C.Right to […]

    71. Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called:A. Administrative expensesB. Nonmanufacturing costsC. Sunk costsD. Factory overheadE. Preproduction costs     72. Materials that are used in support of the production process but […]

  5.2   Multiple-Choice Questions 1) In which of the following aspects does audit differ from compilation or review? A) An audit gives reasonable level of assurance to the users, whereas a compilation or review does not give any level of assurance to the users. B) An audit requires an understanding of the entity’s internal controls and assessment of fraud risk, whereas a compilation or review […]

  Learning Objective 8-6   1) Team Shirts issued 20,000 shares of stock for $20 per share. This transaction increased Cash $400,000 and increased ________ $400,000. A) Paid-in capital B) Retained earnings C) Additional paid-in capital D) Treasury stock   2) Team Shirts issued 20,000 shares of $2 par value stock for $20 per share. This transaction increased Cash $400,000 and increased Common stock ________. […]