Required information

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On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:

During January 2021, the following transactions occur:

7. Analyze how well 3D Family Fireworks manages its receivables:

a-1. Calculate the receivables turnover ratio for the month of January (Hint: For the numerator, use total services provided to customers on account). (Round your final answer to 1 decimal place.)

a-2. If the industry average of the receivables turnover ratios for the month of January is 4.2 times, is the company collecting cash from customers more or less efficiently than other companies in the same industry?

• More

• Less

b-1. Calculate the ratio of Allowance for Uncollectible Accounts to Accounts Receivable at the end of January.

b-2. Based on a comparison of this ratio to the same ratio at the beginning of January, does the company expect an improvement or worsening in cash collections from customers on credit sales?

• Improvement

• Worsening

INSTRUCTIONS: THE OWNER IS IVETTE MARTINEZ AND IS DEDICATED TO GIVING BUSINESS CONSULTATIONS. THE BUSINESS STARTED IN THE MONTH OF OCTOBER OF THE CURRENT YEAR.

1. ANALYZE THE FOLLOWING TRANSACTIONS IN THE TABLE OF THE SIMPLE EQUATION.

2. PREPARE THE TRANSACTIONS IN A JOURNAL.

3. TRANSFER THE TRANSACTIONS TO THE RELEVANT T ACCOUNTS.

4. PREPARE THE TRIAL BALANCE OF THE COMPANY CALLED FREE CONSULTATIONS.

TRANSACTIONS:

1. MARTINEZ INVESTED $60,000 IN HER COMPANY.

2. MADE A LOAN TO BANCO SANTANDER FOR $10,000.

3. PAID $150 FOR THE ELECTRICITY BILL OF THE COMPANY.

4. PAID $500 THE MONTH OF OCTOBER OF THE BANK LOAN

5. GAVE $2,500 FOR SERVICES ON ACCOUNT TO THE CLIENTE MARIA VEGA.

6. PURCHASED A COMPUTER FROM WALMART FOR THE TOTAL OF $2,500 ON ACCOUNT.

7. MARTINEZ WITHDREW $500 FOR PERSONAL USE.

8. RECEIVED $1,500 FOR SERVICES GIVEN.

9. PAID $100 FOR AN ADVERTISEMENT OF THE COMPANY.

10. RECEIVED $500 FROM MARIA VEGA AS A PAYMENT FOR HER ACCOUNT.

CHART OF ACCOUNTS

CASH 1001

ACCOUNTS RECEIVABLE 1002

OFFICE EQUIPMENT 1003

ACCOUNTS PAYABLE 2001

NOTES PAYABLE 2002

MARTINEZ CAPITAL 3001

MARTINEZ DRAWINGS 3002

SERVICE REVENUE 4001

UTILITIES EXPENSE 5001

ADVERTISING EXPENSE 5002

1. Which of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions?

Group of answer choices

FASB (Financial Accounting Standards Board)

D. FDIC (Federal Deposit Insurance Corporation)

IRS (Internal Revenue Service)

SEC (Securities and Exchange Commission)

2. Which of the following breaks down company financial information into specific time spans, and can cover a month, quarter, half-year, or full year?

Group of answer choices

accounting period

monthly period

fiscal period

yearly period
3. Which type of adjustment occurs when cash is either collected or paid, but the related income or expense is not reportable in the current period?

Group of answer choices

deferral

estimate

cull

accrual

The Gatson manufacturing company has estimated the following components for a new product. Fixed cost = $50,000 Material cost per unit = $2.15 Labor cost per unit = $2.00 Revenue per unit = $7.50 Round your answer to the nearest whole number.

1. Using a spreadsheet model, what will be the resulting profit if the company decides to make 70,000 units of the new product?

2. Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit is zero. Vary production volume from 0 to 100,000 in increments of 10,000. In which interval of production volume does breakeven occur?

3. Using the appropriate Excel tool, find the exact breakeven point.

Please show how to solve all problems using Excel.

The Gatson manufacturing company has estimated the following components for a new product. Fixed cost = $50,000 Material cost per unit = $2.15 Labor cost per unit = $2.00 Revenue per unit = $7.50 Round your answer to the nearest whole number.

1. Using a spreadsheet model, what will be the resulting profit if the company decides to make 70,000 units of the new product?

2. Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit is zero. Vary production volume from 0 to 100,000 in increments of 10,000. In which interval of production volume does breakeven occur?

3. Using the appropriate Excel tool, find the exact breakeven point.

Please show how to solve all problems using Excel.

A manufacturer of an external hard disc provided the information that when the price per external hard disk is RM89, then 1 million hard disc will sell. When the price of each hard disc is RM79, then 3 million hard disc will sell. The cost of producing and selling ? million hard disc is ?(?) = 19? + 156.25. a) Find a linear demand function where ? is the number of millions of hard discs sold and ? is the price of each hard disc in RM. b) What is the company’s revenue function for this hard disc? c) What is the company’s profit function? d) How many hard discs must be produced and sold so that the company will have a maximum profit? e) What is the price of hard disc when the company is maximizing their profit? (1 mark)

Debit

Cash 10,600

Accounts receivable 145,000

Prepaid rent 6.500 Inventory 27,000

Equipment 325,000

Costs of goods sold 190,000

Salaries expense 125,000

Rent expense 18,000

Depreciation expense 25.000

Interest expense 3.200

Advertising expense 1.700

Totals 877000

Credit

Accumulated depreciation-equipment 130,000

Accounts payable 35,000

Notes payable-due in three months 32,000

Salaries payable 4,000

Interest payable 1,000

Common stock 230,000

Retained earnings 45,000

Sales revenue 400,000

Totals 877000

3) Prepare the closing entries for China Tea Company for the year ended December 31, 2018.

4) Prepare an income statement for China Tea Company for the year ended December 31, 2018.

Golden Manufacturing Company started operations by acquiring $142,000 cash from the issue of common stock. On January 1, 2018, the company purchased equipment that cost $132,000 cash, had an expected useful life of five years, and had an estimated salvage value of $13,200. Golden Manufacturing earned $94,700 and $68,080 of cash revenue during 2018 and 2019, respectively. Golden Manufacturing uses double-declining-balance depreciation.

Required

1. Record the purchase in a horizontal statements model.

1. b-1. Prepare an income statements for 2018 and 2019. Use a vertical statements format.

1. b-2. Prepare a balance sheets for 2018 and 2019. Use a vertical statements format.

1. b-3. Prepare a statements of cash flows for 2018 and 2019. Use a vertical statements format.

QUESTION 3: CASE STUDY 3 (10%)

Cole Property Management Company

Cole Property Management Company received a bill for RM103, 500 with payment terms 3/20, n/30. Samantha Cole, the owner of the company, knows that she will not have enough money in her business checking account to pay the bill within 10 days and take the early payment discount. In fact, assume that she has nothing in her account, not a single penny. Samantha has a good credit, so her bank is willing to lend her all the money to pay the bill in 20 days. They charge an interest rate of 8% and they use ordinary simple interest.

1)Assume that on exactly the day that the bill is due (n/30), Samantha will have collected enough money from the renters and buyers in her apartment units to pay either the invoice or a loan.

2)What should she do, borrow the money from the bank or pay the invoice on the 30^th day when she has money in her account?