# 10

Question 1

Choose the one alternative that best completes the statement or answers the question. Solve the problem.

Prepare a balance sheet for Mullen’s Hardware for December 31 of last year. The company assets are cash \$15,000, accounts receivable \$21,000, and merchandise inventory \$95,000. The liabilities are accounts payable \$12,000 and wages payable \$17,000. The owner’s capital is \$102,000.

Mullen’s Hardware Balance Sheet

Total assets: \$131,000

Total liabilities: \$29,000

Total liabilities and owner’s equity: \$131,000

Mullen’s Hardware Balance Sheet

Total assets: \$131,000

Total liabilities: \$12,000

Total liabilities and owner’s equity: \$131,000

Mullen’s Hardware Balance Sheet

Total assets: \$95,000

Total liabilities: \$12,000

Total liabilities and owner’s equity: \$102,000

Mullen’s Hardware Balance Sheet

Total assets: \$131,000

Total liabilities: \$17,000

Total liabilities and owner’s equity: \$17,000

10 points

Question 2

Solve the problem. Express answers as a percent rounded to the nearest tenth.

Complete a vertical analysis on the balance sheet for Mullen’s Hardware for December 31 of last year. The company assets are cash \$11,000, accounts receivable \$40,000, and merchandise inventory \$96,000. The liabilities are accounts payable \$19,000 and wages payable \$25,000. The owner’s capital is \$103,000.

Mullen’s Hardware Balance Sheet

Cash: 7.5%

Accounts receivable: 27.2%

Merchandise inventory: 65.3%

Total assets: 100%

Accounts payable: 43.2%

Wages payable: 17.0%

Total liabilities: 29.9%

Mullen’s capital: 70.1%

Total liabilities and owner’s equity: 100%

Mullen’s Hardware Balance Sheet

Cash: 7.5%

Accounts receivable: 27.2%

Merchandise inventory: 65.3%

Total assets: 100%

Accounts payable: 12.9%

Wages payable: 56.8%

Total liabilities: 29.9%

Mullen’s capital: 70.1%

Total liabilities and owner’s equity: 100%

Mullen’s Hardware Balance Sheet

Cash: 7.5%

Accounts receivable: 27.2%

Merchandise inventory: 65.3%

Total assets: 100%

Accounts payable: 12.9%

Wages payable: 17.0%

Total liabilities: 29.9%

Mullen’s capital: 70.1%

Total liabilities and owner’s equity: 100%

Mullen’s Hardware Balance Sheet

Cash: 7.5%

Accounts receivable: 27.2%

Merchandise inventory: 65.3%

Total assets: 100%

Accounts payable: 43.2%

Wages payable: 56.8%

Total liabilities: 100%

Mullen’s capital: 70.1%

Total liabilities and owner’s equity: 100%

10 points

Question 3

Solve the problem. Express answers as a percent rounded to the nearest tenth.

Complete a vertical analysis  on the balance sheet for Jake’s Janitorial Service for December 31 of last year. The company assets are cash \$20,000, accounts receivable \$48,000, merchandise inventory \$89,000, and equipment \$82,000. The liabilities are accounts payable \$13,000, wages payable \$16,000, and mortgage note payable \$77,000. The owner’s capital is \$133,000.

Jake’s Janitorial Service Balance Sheet

Cash: 8.4%

Accounts receivable: 20.1%

Merchandise inventory: 37.2%

Equipment: 34.3%

Total assets: 100%

Accounts payable: 12.3%

Wages payable: 15.1%

Mortgage note payable: 32.2%

Total liabilities: 44.4%

Jake’s capital: 55.6%

Total liabilities and owner’s equity: 100%

Jake’s Janitorial Service Balance Sheet

Cash: 8.4%

Accounts receivable: 20.1%

Merchandise inventory: 37.2%

Equipment: 34.3%

Total assets: 100%

Accounts payable: 5.4%

Wages payable: 6.7%

Mortgage note payable: 72.6%

Total liabilities: 44.4%

Jake’s capital: 55.6%

Total liabilities and owner’s equity: 100%

Jake’s Janitorial Service Balance Sheet

Cash: 8.4%

Accounts receivable: 20.1%

Merchandise inventory: 37.2%

Equipment: 34.3%

Total assets: 100%

Accounts payable: 12.3%

Wages payable: 15.1%

Mortgage note payable: 72.6%

Total liabilities: 100%

Jake’s capital: 55.6%

Total liabilities and owner’s equity: 100%

Jake’s Janitorial Service Balance Sheet

Cash: 8.4%

Accounts receivable: 20.1%

Merchandise inventory: 37.2%

Equipment: 34.3%

Total assets: 100%

Accounts payable: 5.4%

Wages payable: 6.7%

Mortgage note payable: 32.2%

Total liabilities: 44.4%

Jake’s capital: 55.6%

Total liabilities and owner’s equity: 100%

10 points

Question 4

Solve the problem.

For the month ending June 30, TriCounty Nursery has net sales of \$251,000, cost of goods sold of \$99,000, and operating expenses of \$70,000. Find the gross profit and net income.

gross profit: \$152,000; net income: \$82,000

gross profit: \$72,100; net income: \$29,000

gross profit: \$82,000; net income: \$152,000

gross profit: \$152,000; net income: \$29,000

10 points

Question 5

Solve the problem.

For the month ending December 31, MidState Machinery had gross sales of \$4,207,000, returns of \$68,800, cost of beginning inventory \$502,000, cost of purchases \$1,484,000, cost of ending inventory \$570,000, total operating expenses \$135,900. Find the net sales and cost of goods sold.

net sales: \$4,207,000; cost of goods sold: \$1,416,000

net sales: \$4,138,200; cost of goods sold: \$1,416,000

net sales: \$4,138,200; cost of goods sold: \$135,900

net sales: \$4,138,200; cost of goods sold: \$2,716,300

10 points

Question 6

Solve the problem. Express answers as a percent rounded to the nearest tenth.

The Garden Shop had a cost of goods sold of \$108,000, operating expenses of \$49,000, and net sales of \$272,000. Find the cost of goods sold percent of net sales and operating expenses percent of net sales.

cost of goods sold percent of net sales: 39.7%, operating expenses percent of net sales: 21.7%

cost of goods sold percent of net sales: 21.7%, operating expenses percent of net sales: 39.7%

cost of goods sold percent of net sales: 18.0%, operating expenses percent of net sales: 39.7%

cost of goods sold percent of net sales: 39.7%, operating expenses percent of net sales: 18.0%

10 points

Question 7

Solve the problem. Express answers as a percent rounded to the nearest tenth.

Speedy Cleaning Service had a cost of beginning inventory of \$40,000, net sales of \$222,000, and gross sales of \$401,000. Find the beginning inventory percent of net sales and gross sales percent of net sales.

beginning inventory percent of net sales: 180.6%, gross sales percent of net sales: 18.0%

beginning inventory percent of net sales: 18.0%, gross sales percent of net sales: 180.6%

beginning inventory percent of net sales: 65.3%, gross sales percent of net sales: 18.0%

beginning inventory percent of net sales: 18.0%, gross sales percent of net sales: 65.3%

10 points

Question 8

Solve the problem. Round to the nearest tenth.

Find the percent increase (or decrease) in net sales from last year to this year for the income statement.

10.6% decrease

10.6% increase

10.3% increase

10.3% decrease

10 points

Question 9

Solve the problem. Round to the nearest tenth.

Find the percent increase (or decrease) in cost of goods sold from last year to this year for the income statement.

50.8% increase

7.4% decrease

50.8% decrease

7.4% increase

10 points

Question 10

Solve the problem.

Prepare a balance sheet for Jake’s Janitorial Service for December 31 of last year. The company assets are cash \$16,000, accounts receivable \$58,000, merchandise inventory \$50,000, and equipment \$97,000. The liabilities are accounts payable \$23,000, wages payable \$22,000, and mortgage note payable \$87,000. The owner’s capital is \$89,000.

Jake’s Janitorial Service Balance Sheet

Total assets: \$221,000

Total liabilities: \$110,000

Total liabilities and owner’s equity: \$89,000

Jake’s Janitorial Service Balance Sheet

Total assets: \$221,000

Total liabilities: \$132,000

Total liabilities and owner’s equity: \$89,000

Jake’s Janitorial Service Balance Sheet

Total assets: \$221,000

Total liabilities: \$132,000

Total liabilities and owner’s equity: \$221,000

Jake’s Janitorial Service Balance Sheet

Total assets: \$124,000

Total liabilities: \$132,000

Total liabilities and owner’s equity: \$89,000

#### What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but you proved you are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 11***| Rating: ⭐⭐⭐⭐⭐
"This company is the best there is. They saved me so many times, I cannot even keep count. Now I recommend it to all my friends, and none of them have complained about it. The writers here are excellent."