Problem 12-88B (Algorithmic)
Using Common Size Statements

Groff Graphics Company owns and operates a small chain of sportswear stores located near colleges and universities. Groff has experienced significant growth in recent years. The following data are available for Groff:

Required:

1. Calculate how much Groff's sales, net income, and assets have grown during these 3 years. Round your answers to the nearest whole percent.

2. Explain how Groff has financed the increase in assets.

Groff financed its asset growth through an increase in retained earnings and an increase in current liabilities.

3. Conceptual Connection: Is Groff's liquidity is adequate?
Yes

4. Conceptual Connection: Why is interest expense growing?

Because short-term notes payable is increasing.

5. If Groff's sales grow by 25% in 2020, what would you expect net income to be? Round your answer to the nearest dollar. Use your answer in the following calculations.
$

6. If Groff's assets must grow by 25% to support the 25% sales increase and if 50% of net income is paid in dividends, how much capital must Groff raise in 2020? Round your answer to the nearest cent.
$

Using Common Size Statements

Groff Graphics Company owns and operates a small chain of sportswear stores located near colleges and universities. Groff has experienced significant growth in recent years. The following data are available for Groff:

Required:

1. Calculate how much Groff's sales, net income, and assets have grown during these 3 years. Round your answers to the nearest whole percent.

2. Explain how Groff has financed the increase in assets.

Groff financed its asset growth through an increase in retained earnings and an increase in current liabilities.

3. Conceptual Connection: Is Groff's liquidity is adequate?
Yes

4. Conceptual Connection: Why is interest expense growing?

Because short-term notes payable is increasing.

5. If Groff's sales grow by 25% in 2020, what would you expect net income to be? Round your answer to the nearest dollar. Use your answer in the following calculations.
$

6. If Groff's assets must grow by 25% to support the 25% sales increase and if 50% of net income is paid in dividends, how much capital must Groff raise in 2020? Round your answer to the nearest cent.
$

Inventory Costing Methods-Periodic Method Spangler Company is a retailer that uses the periodic inventory system.

March

1 Beginning inventory 110 units of Product M @ $1,590 total cost

6 Purchased 210 units of Product M @ $3,600 total cost

10 Purchased 160 units of Product M @ $3,000 total cost

15 Sold 190 units of Product M

Calculate the March cost of goods sold and the ending inventory at March 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Do not round until your final answers. Round your final answers to the nearest dollar.

A. First-in, first-out Ending Inventory

Cost of Goods Sold

B. Last-in, first-out Ending Inventory

Cost of Goods Sold

C. Weighted-average cost Ending Inventory

Cost of Goods Sold

1. The financial statements of Michelle Company included these items.

                                Marketing costs                                                      P128, 000

                                Direct labor costs                                                    P320, 000

                                Administrative costs                                               P94, 000

                                Direct materials used                                             P385, 000

                                Fixed factory overhead costs                                 P285, 000

                                Variable factory overhead costs                             P175, 000

1. Prime cost
2. Conversion cost
3. Total product cost
4. Total period cost

2. The following data are available for Smith Corporation for the year ending December 31, 2009

                                                                                                January 1                                                 December 31

Inventories                                             

                Materials                                                                P100, 000                                                P150, 000

                Work in process                                                      P180, 000                                                P128, 000

                Finished Goods                                                       P90, 000                                                  P110, 000

Direct labor cost                                                                                                                                     P290, 000

Materials purchased                                                                                                                               P320, 000

Factory overhead – applied at 120% of direct labor cost

1. Direct materials used
2. Total manufacturing cost
3. Cost of good manufactured
4. Cost of goods sold

Fremont, which uses the high-low method, reported total costs of $10.40 per unit at its lowest production level, 5,000 units. When production tripled to its highest level, the total cost per unit dropped to $6.40. Fremont would estimate its total fixed cost as:    

$6.40

$30,000

$52,000

$16.80

For PYTHON

You come into the fast food restaurant with a friend. Each of you orders separately, but everything will appear on one receipt. Print the total per cost person and the total of the receipt. Calculate the sales tax and print the total cost assuming the following prices:

Fries are $3.50

Burger are $5.00

Drinks are $1.00

Sales tax rate is 7.25%

Mickey Mouse Lets You Ride "for Free" At Disney World

• Walt Disney World Theme Parks offer visitors a wide variety of ticket choices.
• The one thing these ticket options have in common is that they entail a fixed entrance fee and allow customers to take as many rides as they want at no additional charge.
• For instance, by purchasing a 1-Day ticket for about $66, a customer gains unlimited access to the park of her choice for one day.
  • Wouldn't Disney earn higher profits if it charged visitors, say, $11, each time they went on a ride?

• Remember to research the topic.

BUSINESS TRAVEL EXPENSES An executive of Trident Communications recently traveled to London, Paris, and Rome. She  paid $280, $330, and $260 per night for lodging in London, Paris, and Rome, respectively, and his hotel bills totaled $4060. She spent $130, $140, and $110 per day for his meals in London, Paris, and Rome, respectively, and his expenses for meals totaled $1800. If she spent as many days in London as she did in Paris and Rome combined, how many days did she stay in each city? Solve using Gauz Jordan method.

Consider a taxi stand where inter-arrival times of the taxis and the customers are both exponential with means of 0.5 and 1 minutes, respectively. Stand has 3 spots that taxis can park while waiting for the arriving customers. Arriving taxis leaves the stand when all the spots are occupied. Similarly, arriving customers are also lost when there is no taxi in the stand.

a. Model this system as a birth and death process by defining the state and the state space, and drawing the rate diagram.
b. Compute the steady-state probabilities.
c. What is the expected number of taxis waiting at the stand in the long run?

Consider a taxi stand where inter-arrival times of the taxis and the customers are both exponential with means of 0.5 and 1 minutes, respectively. Stand has 3 spots that taxis can park while waiting for the arriving customers. Arriving taxis leaves the stand when all the spots are occupied. Similarly, arriving customers are also lost when there is no taxi in the stand.

a. Model this system as a birth and death process by defining the state and the state space, and drawing the rate diagram.

b. Compute the steady-state probabilities.

c. What is the expected number of taxis waiting at the stand in the long run?