Ratio Analysis Memo for Riordan Manufacturing, Inc. By Teri N. Owens University of Phoenix XACC/291 STEVEN GERMAN November 23, 2014 * Liquidity ratios 1. Current ratio $14,524,790 / $2,750,057 = 5.3% 2. Acid-Test $5,605,347 / 2,750,057 = 2.03 3. Receivables turnover 12564004 / 2669824.5 = 4.7 times 4. Inventory turnover 56,534,254 / 8,517,203 = 6.6 * Profitability ratios 5.
To get the gross amounts we add the total amount of reserve for obsolete inventory ($20,129 for 2007 and $17,315 for 2006)) to the net Inventories for ’06 and ’07. iii. What portion of the reserve for obsolete inventory do you think attributable to each of the three types of inventory held by Callaway? Total = $20,129.00; Raw Materials Inventory= ; Work-in-Process Inventory= ; Finished Goods Inventory= . d. Recreate the journal entries Callaway prepared to record the activity in the reserve for obsolete inventory account during 2007 (in thousands).
What amounts should be considered product and period costs respectively for the first year of coverage? Product Period → $1,176 $504 $3,528 $1,512 $5,040 $0 $2,352 $1,008 Annual insurance expense = $5,040 ÷ 3 = $1,680 Portion applicable to product cost = 0.70 × $1,680 = $1,176 Portion applicable to period cost = 0.30 × $1,680 = $504 Gambarini Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly
1. a) Assuming that Fastfit goes ahead with its plans to have an e-commerce site, identify two physical locations, from where customers can enter their orders to the ecommerce site and b) For each of the locations that you mentioned, identify the technologies (cover the areas of software, hardware and networks) that a customer would need (at the location) to accomplish this activity? (use a table); Physical Location | Technologies Required | | Hardware | Software | Network | Home | * Personal Computer (Desktop) * Laptop * Modem | Operating Software such as Windows, Web Browsing Capability Security software such as (McAfee, Ad-Aware) | Access to the internet | Office | * Office Computer (Desktop) * Laptop * Modem | Operating Software such as Windows, Web Browsing Capability Security software such as (McAfee, Ad-Aware) | Access to the internet(Wi-Fi) | Customers do not need any additional software and hardware to order online. Customers can pay the product cost by entering their credit card number. So there is no need of any hardware and software in order to make payment online. 2. a) What technology components (cover the categories of software, hardware and networks) do we need at FastFit to interact with our customers on the web?
Notes Payable | 12000 | | Interest Payable | 9000 | | Total Current Liabilities | 58500 | | Long Term Liabilities | | | Notes Payable | 28000 | | Total Liabilities | | 86500 | Stockholder's Equity | | | Common Stock | 205500 | | Retained Earnings - December 31 | 97400 | | Total Stockholder's Equity | | 302900 | Total Liabilities & Stockholder's Equity | | 389400 | Elker Fashions Incorporated Closing Entries For Year Ended December 31, 2008 Date | Account Title & Explanation | Debit | Credit | 31-Dec | Merchandise Inventory - December 31 | 80000 | | | Sales | 865800 | | | Purchase Discounts | 16400 | | | Income Summary | | 962200 | | (To record ending inventory and close accounts with credit balances) | | | | | | | 31-Dec | Income Summary | 860100 | | | Depreciation Expense - Buildings | | 12000 | | Depreciation Expense - Equipment | | 10000 | | Gas & Oil Expense | | 7600 | | Salary Expense | | 70700 | | Utilities Expense | | 11400 | | Repair Expense | | 5900 | | Insurance Expense | | 3500 | | Sales Discounts | | 6100 | | Purchases | | 720000
Income Statement figures for the most recent fiscal year Cost of goods sold Amount | Percentage of total revenue | $47,860,000,000 | 68.50% ($47,860,000,000/$69,865,000,000) | Reference: Consolidated Statements of Operations, Form 10-K, Page 31. Reference: Footnote 3 - Cost of Sales and Selling, General and Administrative Expenses, Form 10-K, Page 35. Reference: Footnote 11 –Inventory, Form 10-K, Page 42. Gross profit Amount | Percentage of total revenue | $22,005,000,000 ($69,865,000,000 - $47,860,000,000) | 31.50% ($22,005,000,000/$69,865,000,000)
For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour. Expense January February March Power: Cost 1,546 1,485 1,697 Total Revenue Hours 329 316 361 Cost per Revenue Hour $4.70 $4.70 $4.70 Hourly Personnel: Cost 7,896 7,584 8,664 Total Revenue Hours 329 316 361 Cost per Revenue Hour $24.00 $24.00 $24.00 Total Cost per Revenue Hours = $4.70 + $24.00 = $28.70 3. Create a contribution margin income statement for Salem Data Services. Assume that intracompany usage is 205 hours. Assume commercial use is at the March level.
1. Analysis of stockholders' equity Star Corporation issued both common and preferred stock during 20X6. The stockholders' equity sections of the company's balance sheets at the end of 20X6 and 20X5 follow: 20X6 20X5 Preferred stock, $100 par value, 10% $580,000 $500,000 Common stock, $10 par value 2,350,000 1,750,000 Paid-in capital in excess of par value Preferred 24,000 — Common 4,620,000 3,600,000 Retained earnings 8,470,000 6,920,000 Total stockholders' equity $16,044,000 $12,770,000 a. Compute the number of preferred shares that were issued during 20X6. b. Calculate the average issue price of the common stock sold in 20X6.
| | | | (40-50 min.) P 12-42B Req. 1 Georgia Optical Corporation | Balance Sheet | December 31, 2012 | ASSETS | LIABILITIES | Current assets: | | Current liabilities: | | Cash | $ 49,000 | Accounts payable | $ 33,000 | Accounts receivable, net | 107,000 | Accrued liabilities payable | 15,000 | Inventory | 106,000 | Dividends payable | 6,000 | Prepaid expenses | 14,000 | Total current liabilities | $54,000 | Total current assets | $276,000 | Long-term liabilities: | | | | Long-term note payable | 103,000 | Long-term assets: | | Total liabilities | 157,000 | Property, plant, and | | | | equipment, net | 277,000 | STOCKHOLDERS’ EQUITY | | | | Paid-in capital: | | Intangible assets: | | Preferred stock, 5%, $14 par, 50,000 shares | | Goodwill | 61,000 | authorized, 7,000 shares issued | 98,000 | | | Common stock, $4 par, 125,000 shares | | | | authorized, 25,000 shares issued | 100,000
Net initial investment outlay is $302,040. (Cost of new system + Installation) + (Proceeds from old equipment + Tax on proceeds + Removal cost) = Total cost + NCF (old) = 303,000 +-960 2. Tax depreciation savings = (36% tax rate) x (depreciation of each year) Depreciation for each year based on MACRS 5-year (Wikipedia) 3. Incremental cash flows = (Deprn. Tax savings + A.T. cost savings) each year [pic]2.