Expert Answer :Using the following selected items from the compar

Solved by verified expert :Pleas show work.QUESTION #1Using the following selected items from the comparative balance sheet of Anders Company, illustrate horizontal and vertical analysis.December 31, 2009 December 31, 2008Accounts Receivable $ 900,000 $ 600,000Inventory 975,000 750,000Total Assets 4,000,000 2,500,000QUESTION #2The financial statements of Dobson Company appear below:DOBSON COMPANYComparative Balance SheetDecember 31,Assets 2009 2008Cash……………………………………………………………………………………… $ 35,000 $ 40,000Short-term investments…………………………………………………………… 15,000 60,000Accounts receivable (net)………………………………………………………… 50,000 30,000Inventory……………………………………………………………………………….. 50,000 70,000Property, plant and equipment (net)………………………………………….. 250,000 300,000Total assets ……………………………………………………………………… $400,000 $500,000Liabilities and stockholders’ equityAccounts payable…………………………………………………………………… $ 10,000 $ 30,000Short-term notes payable………………………………………………………… 40,000 90,000Bonds payable……………………………………………………………………….. 88,000 160,000Common stock………………………………………………………………………. 160,000 145,000Retained earnings…………………………………………………………………… 102,000 75,000Total liabilities and stockholders’ equity………………………………… $400,000 $500,000DOBSON COMPANYIncome StatementFor the Year Ended December 31, 2009Net sales……………………………………………………………………………….. $360,000Cost of goods sold………………………………………………………………….. 198,000Gross profit……………………………………………………………………………. 162,000ExpensesInterest expense……………………………………………………………….. $12,000Selling expenses……………………………………………………………….. 40,000Administrative expenses…………………………………………………….. 59,000Total expenses…………………………………………………………….. 111,000Income before income taxes……………………………………………………. 51,000Income tax expense……………………………………………………………….. 15,000Net income……………………………………………………………………………. $ 36,000Additional information:a. Cash dividends of $9,000 were declared and paid in 2009.b. Weighted-average number of shares of common stock outstanding during 2009 was 30,000 shares.c. Market value of common stock on December 31, 2009, was $21 per share.InstructionsUsing the financial statements and additional information, compute the following ratios for Coulter Company for 2009. Show all computations.Computations1. Current ratio _________.2. Return on common stockholders’ equity _________.3. Price-earnings ratio _________.4. Acid-test ratio _________.5. Receivables turnover _________.6. Times interest earned _________.7. Profit margin _________.8. Days in inventory _________.9. Payout ratio _________.10. Return on assets _________.QUESTION #3Gumble Corporation had income from continuing operations of $300,000 for the year ended December 31, 2008. It also had the following items (before income taxes):1. Extraordinary flood loss of $150,000.2. Loss of $60,000 on discontinuance of a division.All items are subject to income taxes at a 30% tax rate.InstructionsPrepare a partial income statement, beginning with income from continuing operations.QUESTION #4Presented below is a list of costs and expenses incurred in the factory by Nu-Way Corporation, a manufacturer of recreational vehicles.____ 1. Property taxes on the factory land____ 2. Nails and glue used in production____ 3. Cabinet maker’s wages____ 4. Factory supervisors salaries____ 5. Metal used in manufacturing____ 6. Depreciation on factory machines____ 7. Factory utilities____ 8. Carpeting for the recreational vehicles____ 9. Property taxes on the factory building____ 10. Insurance on factory equipmentInstructionsClassify the above items into the following categories:DM Direct MaterialsDL Direct LaborMO Manufacturing OverheadQUESTION #5For each item, identify all applicable cost labels. Use the following code in your answer:1 Product Cost2 Period Costa. Advertising _________b. Direct materials used _________c. Sales salaries _________d. Indirect factory labor _________e. Repairs to office equipment _________f. Factory manager’s salary _________g. Direct labor used _________h. Indirect materials _________QUESTION #6Among the items that Gentry Print Shop accounts for are the following:1. Direct labor _________2. Office supplies used _________3. Depreciation on printing machines _________4. Finished goods inventory, 12/31 _________5. Raw materials inventory, 1/1 _________6. Cost of goods manufactured _________7. Work in process, 1/1 _________8. Office supplies inventory, 12/31 _________9. Indirect labor _________10. Heat and electricity for the print shop _________Gentry Print Shop prepares the following schedule and financial statements on a yearly basis:(a) Cost of goods manufactured schedule.(b) Income statement.(c) Balance sheet.InstructionsFor each item, indicate by using the appropriate letter(s) the schedule and/or financial statements in which the item will appear.QUESTION #7From the account balances listed below, prepare a schedule of cost of goods manufactured for Timmons Manufacturing Company for the month ended December 31, 2008.Account BalancesFinished Goods Inventory, December 31 $42,000Factory Supervisory Salaries 12,000Income Tax Expense 18,000Raw Materials Inventory, December 1 12,000Work In Process Inventory, December 31 25,000Sales Salaries Expense 14,000Factory Depreciation Expense 8,000Finished Goods Inventory, December 1 35,000Raw Materials Purchases 95,000Work In Process Inventory, December 1 30,000Factory Utilities Expense 4,000Direct Labor 70,000Raw Materials Inventory, December 31 19,000Sales Returns and Allowances 5,000Indirect Labor 21,000QUESTION #8Listed below are selected items for Klugman Company at December 31, 2008.Finished goods inventory $35,000 Short-term investments $28,000Cash 20,000 Raw materials inventory 12,000Prepaid expenses 2,000 Work in process inventory 18,000Accounts receivable 4,000 Supplies 500InstructionsPrepare the current assets section of the balance sheet. (Include a complete heading.)QUESTION #9Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June.June 1 Purchased raw materials for $20,000 on account.8 Raw materials requisitioned by production:Direct materials $8,000Indirect materials 1,00015 Paid factory utilities, $2,100 and repairs for factory equipment, $3,000.25 Incurred $84,000 of factory labor.25 Time tickets indicated the following:Direct Labor (5,000 hrs $12 per hr) = $60,000Indirect Labor (3,000 hrs $8 per hr) = 24,000$84,000QUESTION #10Martin Co. applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year are as follows:Actual manufacturing overhead $118,000Estimated manufacturing overhead $110,000Direct labor hours incurred 4,800Direct labor hours estimated 5,000Compute the predetermined overhead rate AND the amount of applied manufacturing overhead.