FINANCIAL ACCOUNTING FINAL EXAM

1. Indicate which statement you would examine the fine each of the following items: income statement, balance sheet, retained earnings statement, or statement of cash flows

3. SciTronics had a total of $112, 000 (75,000+20,000+7,000+10,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) 16,000 (26,000-10,000)

c) Compute for 2005 and 2004 the (1) debt to total assets and (2) times interest earned ratio.

During November, purchases of direct materials were $18,000. Direct labor and factory overhead costs were $20,000 and $28,000, respectively.

Chapter 03: Financial Accounting Exercise 03-02: Basic Financial Accounting Process Single Company Code Version 1 Rev: 01/03/2011

The following expenditures relating to plant assets were made by Spaulding Company during the first 2 months of 2011 (determine cost of the plant acquisitions).

INVESTools should definitely capitalize these expenses. The practice of not capitalizing these expenses has led to routine recording of net losses

Consolidated Statements of Income (in thousands) 2003 2004 2005 Revenue Net sales Cost of goods sold Gross profit/(loss) Gross margin Operating expenses Sales and marketing Engineering and product development General and administrative Total operating expenses Operating income/loss Other income/expense Interest income/expense Other income/(expense) Income before provision for income taxes Income taxes Net income/(loss) Net margin 61,529 41,072 20,457 33.2% 64,063 43,155 20,908 32.6% 60,144 45,835 14,309 23.8%

14) If a government uses a perpetual inventory system for its General Fund and there is an inventory overage at the end of the year, the inventory

[1] What is the amount of property and equipment on the balance sheet for the two most recent years? What is the amount of depreciation expense? What amounts are on the cash flow statement for the most recent year that relate to depreciation, gains and sales of property and equipment, and purchases and sale of property of equipment? What amounts are permitted for inclusion in the capitalized

Adjusted operating expenses went up by $312 million, or 4.8% compared to 2014. Adjusted operating income became $1.8 billion which is higher by 3.4%. $116 million was for adjusted interest expense. Adjusted net earnings were $1.1 billion, an increase of $66 million, or 6.4%, compared to the same period last year.

Expected sales for the upcoming year are $4,100,000. Costs of goods sold are 65% of sales and other operating expenses are $850,000. The interest rate on ABC’s short-term debt is 10% per annum.

Prepare an income statement and balance sheet in good form. For each statement, use a

Earning from Continuing Operations Total Other Earning/Expenses Net - - - Earnings Before Interest And Taxes 848 (284) 1,933 Interest Expense - 3 44 Earning Before Tax 848 (287) 1,889 Earning Tax Expense (70) (50) (80) Interest (270)

Financial Information Pro-forma income statements Period Ending 31-Dec-2015 31-Dec-2016 31-Dec-2017 Total Revenue 11,39 8,52 9,16 Cost of Revenue 1,68 1,29 91 Gross Profit 9,71 7,23 8,25 Operating Expenses Research Development - - - Selling General and Administrative 8,598 7,122 6,167 Non Recurring - - - Others 264 392 155 Total Operating Expenses - - - Operating Earning or Loss 848 (284) 1,933