Question 29
Flounder Corp. had $100,000 of 7%, $20 par value preferred stock and 12,000 shares of $25 par
value common stock outstanding throughout 2017.
Assuming that total dividends declared in 2017 were $64,000, and that the preferred stock is not
cumulative but is fully participating, common stockholders should receive 2017 dividends of what
amount?
Common stockholders should receive
$
Assuming that total dividends declared in 2017 were $64,000, and that the preferred stock is fully
participating and cumulative with preferred dividends in arrears for 2016, preferred stockholders
should receive 2017 dividends totaling what amount?
Preferred stockholders should receive
$
Assuming that total dividends declared in 2017 were $30,000, that the preferred stock is
cumulative, nonparticipating, and was issued on January 1, 2016, and that $5,000 of preferred dividends were declared and paid in 2016, the common stockholders should receive 2017 dividends totaling what amount? Common stockholders should receive

Windsor Company began operations on January 1, 2016, adopting the conventional retail inventory system. None of the company’s merchandise was marked down in 2016 and, because there was no beginning inventory, its ending inventory for 2016 of $37,300 would have been the same under either the conventional retail system or the LIFO retail system.

On December 31, 2017, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2017, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level.

Determine the cost of the 2017 ending inventory under both

(a) the conventional retail method=

(b) the LIFO retail method=

Accounting for uncollectible accounts using the allowance method (percent-of-receivables) and reporting receivables on the balance sheet

At January 1, 2016, Carl's Garage had Accounts Receivable of $ 34,000 and Allowance for Bad Debts had a credit balance of $ 3,000. During the year, Carl's Garage recorded the following:

a.   Sales of $189,000 ($165,000 on account; $ 24,000 for cash).
b.   Collections on account, $ 133,000.
c.   Write-offs of uncollectible receivables, $ 2,800.

Requirements
1.   Journalize Carl’s transactions that occurred during 2016. The company uses the allowance method.
2.   Post Carl’s transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts.
3.   Journalize Carl’s adjustment to record bad debts expense assuming Carl estimates bad debts as 1% of receivables. Post the adjustment to the appropriate T- accounts.
4.   Show how Carl's Garage will report net accounts receivable on its December 31, 2016 balance sheet.

For a recent 2-year period, the balance sheet of Grouper Company showed the following stockholders’ equity data at December 31 (in millions).

(a) Answer the following questions.

(1) What is the par value of the common stock? (Round par value to 2 decimal places, e.g. $3.15.)

(2) What is the cost per share of treasury stock at December 31, 2017, and at December 31, 2016?

(b) Prepare the stockholders’ equity section at December 31, 2017.

What actions taken by the Bank of Canada in 2015 and 2016 would you expect to have influenced real GDP growth in 2018? Explain how those policy actions would transmit to real GDP. In 2015 and 2016, the Bank of Canada kept the overnight rate low. This policy would transmit to real GDP by all of the following except ______

A. an increase in net exports

B. an increase in investment

C. an increase in consumption expenditure

D. an increase in short-run aggregate supply

Draw a graph of aggregate demand and aggregate supply to illustrate your answer to the previous question. The graph shows the aggregate demand curve and the short-run aggregate supply in Canada in 2016. Suppose the Bank of Canada keeps the overnight rate low, which lowers the real interest rate and stimlates the economy. Draw a curve to show the Bank's desired effect. Label it. Draw a point at the new equilibrium price level and new equilibrium real GDP.

Question 2: Manufacturing Statement and Income Statement

Lake Ltd.’s accounting department provided following financial information:

Required: prepare a statement of Cost of Goods Manufactured and an Income Statement for Lake Ltd. for the year ended 30^th June 2017. You can prepare the statements in an Excel spreadsheet then paste into Word.

What is the cash flow of the firm, or CF(A), for 2017?