QUESTION 1 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

QUESTION 1

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

1.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

1.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

1.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

1.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

1.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

1.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

1.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