ACC1000_Exam2_V1_Spring2022

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School

Babson College *

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Course

1000

Subject

Accounting

Date

Apr 3, 2024

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pdf

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Uploaded by DrFangCapybara40

Name___________________________________ Section Time (Circle One): 9.45AM / 1.15PM / 3.00PM ACC 1000 Monday, April 4, 2022 (04/04/2022) Exam II ‐ Blanchette (Version 1) Exam 2 ‐ Attachot (Version 1) Instructions:  You have 1 hour and 30 minutes to complete the test.  This test is closed ‐ book and closed ‐ notes.  Please write legibly.  You may use a calculator, but please write down all your calculations so that I can understand how you arrive at your answers.  Please take off all smart electronic devices such as Apple Watch, etc.  Be sure you label accounts with specific titles, and indicate increases and decreases clearly.  MAKE SURE YOU HAVE COMPLETED ALL SECTIONS OF THE EXAM. THE EXAM IS DOUBLE ‐ SIDED. Part 1: Statement of Cash Flow Preparation 27 points Part 2: Statement of Cash Flow Analysis 8 points Part 3: Financial Ratio Analysis 55 points Part 4: Business Model 10 points Total 100 points I pledge my honor that I have neither received nor provided unauthorized assistance during the completion of this work. Signature: _________________________________________________

Name___________________________________ Page 2 THIS PAGE IS INTENTIONALLY LEFT BLANK

Name___________________________________ Page 3 PART 1: Statement of Cash Flow Preparation (27 Points) Prepare a statement of cash flow for the Year 2021 using the indirect method with the income statement and the comparative balance sheet provided on Page 4. Provide your answer on the following page. *** READ BELOW *** SPECIAL INSTRUCTIONS for PART 1 and PART 2 While it is NOT required that you complete Part 1 and Part 2 of the exam first, you are required do Part 1 and 2 in order. You must complete Part 1 and turn it in, in order to receive additional data from the faculty to complete Part 2. Regardless of how you choose to proceed with your exam, we recommend that you turn in your Part 1 AT LEAST 15 MINUTES BEFORE the exam end time. This will allow you to have at least 15 minutes to answer questions in Part 2. *** READ ABOVE ***

Name___________________________________ Page 4 PART 1: Statement of Cash Flow Preparation (Continued) INCOME STATEMENT 2021 Revenue 650,000 $ Cost of Goods Sold 273,000 Gross Profit 377,000 Operating Expenses: SG&A Expenses 162,500 Depreciation Expense 70,200 Amortization Expense 3,100 Operating Income 141,200 Interest Expense 7,300 Income Before Taxes 133,900 Tax Expense 28,100 Net Income 105,800 $ BALANCE SHEET 2021 2020 Change Cash 168,200 $ 62,300 $ 105,900 Accounts Receivable 53,400 48,100 5,300 Short ‐ Term Marketable Securities 13,000 11,700 1,300 Inventory 33,700 30,300 3,400 Current Assets 268,300 152,400 115,900 Property, Plant and Equipment 780,000 702,000 78,000 Accumulated depreciation (312,000) (241,800) (70,200) Property, Plant and Equipment, net 468,000 460,200 7,800 Intangibles, net 19,500 15,600 3,900 Total assets 755,800 $ 628,200 $ 127,600 Liabilities 2021 2020 Change Accounts Payable 33,700 $ 30,300 $ 3,400 Short ‐ Term Notes Payable 13,700 12,300 1,400 Accrued Liabilities 6,300 5,700 600 Current Liabilities 53,700 48,300 5,400 Long ‐ Term Notes Payable 162,500 146,300 16,200 Equity Common Stock 214,500 193,100 21,400 Retained Earnings 325,100 240,500 84,600 Total Equity 539,600 433,600 106,000 Total Liabilities & Stockholder's Equity 755,800 $ 628,200 $ 127,600 Assets Liabilities & Stockholder's Equity

Name___________________________________ Page 5 PART 1: Statement of Cash Flow Preparation (Continued) Use the space on this page to prepare a Statement of Cash flow (SCF). Clearly identify each section of SCF and each item. Use proper labeling and formatting.

Name___________________________________ Page 6 PART 2: Statement of Cash Flow Analysis (8 Points) *** READ BELOW *** SPECIAL INSTRUCTIONS for PART 1 and PART 2 When you complete your answer to Part 1 (SCF Preparation), please do the following: 1. Tear off Page 1 through Page 6 from the exam 2. Place them on the top left or right corner of your desk (whichever one close to the walking aisle) 3. Raise your hand to get the faculty’s attention 4. The faculty will collect the first six pages from you and provide you with additional information for you to complete Part 2 of the exam. *** READ ABOVE ***

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