AO3 principal of accounting assinment 4

AO3 principal of accounting assinment 4

Question
	
The following information is
given for Tripp Company, which uses the indirect method.


















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Net
income $20,000



Depreciation
expense 3,000



Increase
in accounts receivable 2,000






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Payment
of dividends 2,000



Proceeds
from sale of equipment 6,000



Increase
in accounts payable 4,000



Decrease
in inventory 3,000






From the information provided,
answer the following questions:






a) The cash flow from operating
activities is ________.



b) The cash flow from investing
activities is ________.



c) The cash flow from financing
activities is ________.
















Part B:






Selected
data for Stick's Design are given as of December 31, Year 1 and Year 2 (rounded
to the nearest hundredth).






 Year 2 Year 1



Net Credit Sales $25,000 $30,000



Cost of Goods Sold 16,000 18,000



Net Income 2,000 2,800



Cash 5,000 900



Accounts Receivable 3,000 2,000



Inventory 2,000 3,600



Current Liabilities 6,000 5,000






Required:
Compute the following:



a.
________ Current ratio for Year 2.



b.
________ Acid-test ratio for Year 2.



c.
________ Accounts receivable turnover for Year 2.



d.
________ Average collection period for Year 2.



e.
________ Inventory turnover for Year 2.
















Part C:






Prepare an income statement
showing departmental contribution margin based on the following:






 Dept.
X Dept. Y Rent Expense



Space
(square feet) 17,500 35,000



Net
Sales $60,000 $ 40,000



Cost
of Goods Sold 18,000 16,000



Rent Expense
(allocated based on square feet) $2,700









 Dept.
X Dept. Y Total













Part D: 






From the following transactions,
prepare the appropriate general journal entries for the month of April.






1. Raw materials costing $60,000
were issued from the storeroom.



2. Direct labor of $53,000 was
charged to production.



3. Indirect labor costs of
$17,000 were incurred.



4. Overhead was applied at the
rate of 40% of direct labor dollars.



5. Completed products costing
$42,000 were transferred to finished goods.



6. Products costing $32,000 were
sold.