Financial & Managerial 15e Check Figures

Chapter 1 No check figures required. Problem material is qualitative in nature. Chapter 2 Solutions to Problem Set A Problem 2.1A Problem 2.2A Problem 2.3A Problem 2.4A Problem 2.5A Problem 2.6A Problem 2.7A Problem 2.8A Problem 2.9A Total assets = $1,010,300; Total liabilities = $720,300 Issued capital stock for $15,000 (part e). Ending cash balance = $41,250 Ending cash balance = $77,600 Total assets = $553,080; Total liabilities = $215,850 Total assets = $901,470; Total liabilities = $422,050 Total assets (8/3) = $236,700; Total liabilities (8/3) = $91,000 Total assets (10/6) = $173,590; Total liabilities (10/6) = $88,000 Total assets = $51,500; Total liabilities = $23,100

Problem 2.10A Total assets = $114,735; Total liabilities = $106,200 Solutions to Problem Set B Problem 2.1B Problem 2.2B Problem 2.3B Problem 2.4B Problem 2.5B Problem 2.6B Problem 2.7B Problem 2.8B Problem 2.9B Total assets = $614,000; Total liabilities = $261,600 Issued capital stock for $10,000 (part e). Ending cash balance = $50,000 Ending cash balance = $27,600 Total assets = $630,250; Total liabilities = $141,250 Total assets = $226,700; Total liabilities = $79,000 Total assets (7/5) = $213,300; Total liabilities (7/5) = $49,700 Total assets (10/6) = $211,900; Total liabilities (10/6) = $58,000 Total assets = $56,400; Total liabilities = $23,000

Problem 2.10B Total assets = $115,900; Total liabilities = $102,500

Chapter 3 Solutions to Problem Set A Problem 3.1A Problem 3.2A Problem 3.3A Problem 3.4A Problem 3.5A Problem 3.6A Problem 3.7A Problem 3.8A Liabilities (Accounts Payable) increased (credited) $8,000 on 2/18. Debit Accounts Payable $100 on 8/5. Debit Advertising Expense $165 on 9/14. Total stockholders equity (6/30) = $63,990 Total assets (5/31) = $579,400 Debit column total of trial balance (7/31) = $3,550 Debit column total of trial balance (6/30) = $19,300 The first error listed understates (U) Owners Equity.

Solutions to Problem Set B Problem 3.1B Problem 3.2B Problem 3.3B Problem 3.4B Problem 3.5B Problem 3.6B Problem 3.7B Problem 3.8B Liabilities (Accounts Payable) increased (credited) $11,000 on 4/12. Debit Accounts Payable $100 on 6/5. Debit Advertising Expense $320 on 10/12. Total stockholders equity (3/31) = $85,670 Total assets (8/31) = $625,800 Debit column total of trial balance (2/28) = $4,805 Debit column total of trial balance (3/31) = $24,300 The first error listed understates (U) Owners Equity.

Chapter 4 Solutions to Problem Set A Problem 4.1A Problem 4.2A Problem 4.3A Problem 4.4A Problem 4.5A Problem 4.6A Problem 4.7A Problem 4.8A Adjusting entry (4): Debit Depreciation Expense: Carts, $1,000. Adjusting entry (7): Debit Unearned Camper Revenue, $900. Adjusting entry (4): Credit Passenger Revenue Earned, $75,000. Adjusting entry (1): Credit Prepaid Film Rental, $15,200. Adjusting entry (3): Credit Unexpired Insurance, $300. Adjusting entry (5): Credit Climbing Supplies, $2,900. Net Income for the year ended 12/31 = $27,720 Owners Equity is understated (U) as a result of transaction g.

Solutions to Problem Set B Problem 4.1B Problem 4.2B Problem 4.3B Problem 4.4B Problem 4.5B Problem 4.6B Problem 4.7B Problem 4.8B Adjusting entry (5): Debit Interest Expense, $400. Adjusting entry (7): Debit Unearned Camper Revenue, $1,500. Adjusting entry (4): Credit Unexpired Insurance, $240. Adjusting entry (7): Credit Salaries Payable, $2,200. Adjusting entry (3): Credit Unexpired Insurance, $400. Adjusting entry (4): Credit Office Supplies, $1,720. Net Income for the year ended 12/31 = $10,205 Owners Equity is overstated (O) as a result of transaction g.

Chapter 5 Solutions to Problem Set A Problem 5.1A Problem 5.2A Problem 5.3A Problem 5.4A Problem 5.5A Problem 5.6A Problem 5.7A Problem 5.8A Retained earnings on 12/31 = $21,000 Total assets on 12/31 = $113,400 Net loss for the year ended 12/31 = $31,240 Net income for the quarter ended 9/30 = $20,600 Total assets on 12/31 = $65,525 Total debit column of the adjusted balance = $252,690 Total debit column of the adjusted balance = $371,430 End of year current ratio = 1.07:1

Solutions to Problem Set B Problem 5.1B Problem 5.2B Problem 5.3B Problem 5.4B Problem 5.5B Problem 5.6B Problem 5.7B Problem 5.8B Retained earnings on 12/31 = $33,300 Total assets on 12/31 = $124,400 Net loss for the year ended 12/31 = $31,600 Net income for the quarter ended 9/30 = $28,300 Total assets on 12/31 = $442,450 Total debit column of the adjusted balance = $113,355 Total debit column of the adjusted balance = $633,250 End of year current ratio = 1.71:1

Chapter 6 Solutions to Problem Set A Problem 6.1A Problem 6.2A Problem 6.3A Problem 6.4A Problem 6.5A Problem 6.6A Problem 6.7A Problem 6.8A Gross profit for year ended 12/31 = $327,968 Net income for the year ended 12/31 = $12,000 Change in net sales during the most recent year = 6% Debit Cost of Goods Sold $294 on 6/15 (part a.1). Debit Cost of Goods Sold $6,000 on 2/9 (part a). Inventory is overstated by $14,700 (part a.2). Gross profit is $350,000 (part a). Gross profit is $3,900 (part g).

Solutions to Problem Set B Problem 6.1B Problem 6.2B Problem 6.3B Problem 6.4B Problem 6.5B Problem 6.6B Problem 6.7B Problem 6.8B Gross profit for year ended 12/31 = $698,500 Net income for the year ended 12/31 = $33,970 Change in net sales during the most recent year = 4.9% Debit Cost of Goods Sold $686 on 5/11 (part a.1). Debit Cost of Goods Sold $6,000 on 10/12 (part a). Inventory is overstated by $7,350 (part a.2). Gross profit is $50,000 (part a). Gross profit is $18,000 (part h).

Chapter 7 Solutions to Problem Set A Problem 7.1A Problem 7.2A Problem 7.3A Problem 7.4A Problem 7.5A Problem 7.6A Problem 7.7A Problem 7.8A Adjusted cash balance on 7/31 = $129,714 Correct adjusted cash balance on 11/30 = $15,745 Debit Uncollectible Accounts Expense $25,500 on 12/31. Debit Uncollectible Accounts Expense $160,000 on 12/31. Debit Loss on Sale of Investments $6,060 on 8/7 (part b). Credit Interest Revenue $3,125 on 6/1 (part a). Credit Interest Revenue $250 on 12/31 (part c). Cash and cash equivalents on 12/31 (part b) = $171,460

Solutions to Problem Set B Problem 7.1B Problem 7.2B Problem 7.3B Problem 7.4B Problem 7.5B Problem 7.6B Problem 7.7B Problem 7.8B Adjusted cash balance on 11/30 = $7,745 Correct adjusted cash balance on 4/30 = $16,730 Debit Uncollectible Accounts Expense $44,600 on 12/31. Debit Uncollectible Accounts Expense $141,000 on 12/31. Debit Loss on Sale of Investments $5,020 on 4/20 (part b). Credit Interest Revenue $4,200 on 8/1 (part a). Credit Interest Revenue $360 on 12/31 (part c). Cash and cash equivalents on 12/31 (part b) = $263,500

Chapter 8 Solutions to Problem Set A Problem 8.1A Problem 8.2A Problem 8.3A Problem 8.4A Problem 8.5A Problem 8.6A Problem 8.7A Problem 8.8A Debit Cost of Goods Sold $30,200 on 1/15 (part a, FIFO method). Inventory balance on 9/30 (LIFO method) = $20,250 Inventory balance on 9/30 (FIFO method) = $20,300 Debit Cost of Goods Sold $1,560 (part a, LIFO method). Inventory balance (FIFO method) = $6,710 Gross profit percentage in most recent year = 36% Estimated ending inventory (part a) = $52,800 Gross profit rate (LIFO method) = 24.6%

Solutions to Problem Set B Problem 8.1B Problem 8.2B Problem 8.3B Problem 8.4B Problem 8.5B Problem 8.6B Problem 8.7B Problem 8.8B Debit Cost of Goods Sold $14,600 on 1/22 (part a, FIFO method). Inventory balance on 6/30 (LIFO method) = $57,500 Inventory balance on 6/30 (FIFO method) = $58,300 Debit Cost of Goods Sold $120 (part a, LIFO method). Inventory balance (FIFO method) = $2,180 Gross profit percentage in most recent year = 32% Estimated ending inventory (part a) = $44,000 Gross profit rate (LIFO method) = 39.3%

Chapter 9 Solutions to Problem Set A Problem 9.1A Problem 9.2A Problem 9.3A Problem 9.4A Problem 9.5A Problem 9.6A Problem 9.7A Problem 9.8A Debit Depreciation Expense: Computing Equipment $27,100 (part d). Depreciation Expense, 2008 = $20,736 (200% declining-balance) Depreciation Expense, 2011 = $1,068 (150% declining-balance) Credit Gain on Sale of Plant Assets on 4/1, $550,000. Operating expense (part e). Estimated goodwill of Joes Garage (part a) = $1,085,000 Accumulated depreciation (part b) = $12,800 Amortization of patent (part b) = $15,000

Solutions to Problem Set B Problem 9.1B Problem 9.2B Problem 9.3B Problem 9.4B Problem 9.5B Problem 9.6B Problem 9.7B Problem 9.8B Debit Depreciation Expense: Equipment $3,860 (part d). Depreciation Expense, 2008 = $57,600 (200% declining-balance) Depreciation Expense, 2011 = $1,415 (150% declining-balance) Credit Gain on Sale of Plant Assets on 3/3, $320,000. Intangible asset (part d). Estimated goodwill of Carnies (part a) = $1,600,000 Accumulated depreciation (part b) = $7,000 Amortization of patent (part b) = $13,333

Chapter 10 Solutions to Problem Set A Problem 10.1A Income statement, transaction a: increase expenses; decrease net income. Problem 10.2A Total current liabilities = $381,000 Problem 10.3A Debit Interest Expense on 12/31, $6,428. Problem 10.4A Debit Interest Expense on 11/1, $10,797. Problem 10.5A Debit Bond Interest Expense on 12/31, $166,667. Problem 10.6A Debit Bond Interest Expense on 12/31, $2,693,334 (part a.1). Problem 10.7A Total liabilities (part a) = $1,088,620 Problem 10.8A Total liabilities (part a) = $1,576,000 Solutions to Problem Set B Problem 10.1B Income statement, transaction a: increase expenses; decrease net income. Problem 10.2B Total current liabilities = $381,000 Problem 10.3B Debit Interest Expense on 12/31, $1,050. Problem 10.4B Debit Interest Expense on 11/1, $1,000. Problem 10.5B Debit Bond Interest Expense on 12/31, $25,000. Problem 10.6B Debit Bond Interest Expense on 12/31, $203,333 (part a.1). Problem 10.7B Total liabilities (part a) = $881,580 Problem 10.8B Total liabilities (part a) = $1,540,500

Chapter 11 Solutions to Problem Set A Problem 11.1A Total stockholders equity on 12/31 = $3,805,000 Problem 11.2A Total stockholders equity on 12/31 = $8,210,000 Problem 11.3A Total stockholders equity on 12/31 = $2,452,000 Problem 11.4A Debit Land on 6/4, $225,000. Problem 11.5A Book value per share (part g) = $26.27 Problem 11.6A Total paid-in capital (part c) = $180,329 Problem 11.7A No check figures given. Problem 11.8A Total stockholders equity = $590,000 Problem 11.9A Total stockholders equity = $6,695,000 Solutions to Problem Set B Problem 11.1B Total stockholders equity on 12/31 = $2,902,000 Problem 11.2B Total stockholders equity on 12/31 = $7,900,000 Problem 11.3B Total stockholders equity on 12/31 = $4,463,000 Problem 11.4B Debit Dividends (Preferred Stock) on 7/5, $20,000. Problem 11.5B Book value per share (part g) = $8.09 Problem 11.6B Total paid-in capital (part c) = $136,400 Problem 11.7B No check figures given. Problem 11.8B Total stockholders equity = $840,000 Problem 11.9B Total stockholders equity = $7,051,440

Chapter 12 Solutions to Problem Set A Problem 12.1A Net income = $14,260,000 Problem 12.2A Ending Retained Earnings on 12/31 (part b) = $7,625,000 Problem 12.3A Ending Retained Earnings on 12/31 (part b) = $2,305,000 Problem 12.4A Total stockholders equity at 12/31 = $1,293,600 Problem 12.5A Total stockholders equity at 12/31 = $4,760,300 Problem 12.6A Total stockholders equity at 12/31 (part b) = $8,792,800 Problem 12.7A Total stockholders equity decreased (part a.1). Problem 12.8A Total stockholders equity at 12/31 (part b) = $5,914,000 Problem 12.9A Net loss = $18,301 Solutions to Problem Set B Problem 12.1B Net income = $9,340,000 Problem 12.2B Ending Retained Earnings on 12/31 (part b) = $23,055,000 Problem 12.3B Ending Retained Earnings on 12/31 (part b) = $6,358,000 Problem 12.4B Total stockholders equity at 12/31 = $438,000 Problem 12.5B Total stockholders equity at 12/31 = $3,960,000 Problem 12.6B Total stockholders equity at 12/31 (part b) = $9,228,925 Problem 12.7B Total stockholders equity increased (part a.4). Problem 12.8B Total stockholders equity at 12/31 (part b) = $2,136,800 Problem 12.9B Net loss = $16,220

Chapter 13 Solutions to Problem Set A Problem 13.1A Net cash flow from operating activities (part a) = $275,000 Problem 13.2A Net cash flow used in investing activities (part a) = ($39,000) Problem 13.3A Net cash flow used in investing activities (part a) = ($25,000) Problem 13.4A Net cash flow from operating activities (part a) = $336,000 Problem 13.5A Net cash flow from operating activities = $336,000 Problem 13.6A Net cash flow from operating activities (part a) = $350,000 Problem 13.7A Net decrease in cash for the year = $43,000 Problem 13.8A Net increase in cash for the year = $50,000 Solutions to Problem Set B Problem 13.1B Net cash flow from operating activities (part a) = $735,000 Problem 13.2B Net cash flow used in investing activities (part a) = ($91,000) Problem 13.3B Net cash flow used in investing activities (part a) = ($35,000) Problem 13.4B Net cash flow from operating activities (part a) = $935,000 Problem 13.5B Net cash flow from operating activities = $935,000 Problem 13.6B Net cash flow from operating activities (part a) = $923,000 Problem 13.7B Net cash flow used in operating activities (part a) = ($158,000) Problem 13.8B Net increase in cash for the year = $38,000

Chapter 14 Solutions to Problem Set A Problem 14.1A Industry average net income as a percentage of sales = 4% Problem 14.2A Net income for most recent year (part d) = $172,800 Problem 14.3A Total current liabilities = $229,670 Problem 14.4A Current ratio = 0.82:1 Problem 14.5A Current ratio = 3:1 Problem 14.6A Return on assets = 10.5% Problem 14.7A Current ratio (end of year) = 3.09:1 Problem 14.8A Inventory turnover = 4.68 times Problem 14.9A Current ratio (Another World) = 2:1 Solutions to Problem Set B Problem 14.1B Bathrooms, Inc. net income as a percentage of sales = 17% Problem 14.2B Net income for most recent year (part d) = $150,000 Problem 14.3B Total current liabilities = $225,200 Problem 14.4B Current ratio = 0.69:1 Problem 14.5B Current ratio = 2.95:1 Problem 14.6B Return on assets = 8.1% Problem 14.7B Current ratio (end of year) = 1.09:1 Problem 14.8B Inventory turnover = 7.14 times Problem 14.9B Current ratio (That Star) = 2.64:1

Chapter 15 Solutions to Problem Set A Problem 15.1A Profit in kr (part a) = kr 3,740 Problem 15.2A Debit Inventory $2,549,000 on 11/12. Problem 15.3A Gross profit = $303.00 (if C$ = $0.75) Problem 15.4A Profit per unit (Malaysia) = 175.40 Ringgits Problem 15.5A No check figures given. Problem 15.6A Debit Accounts Receivable (Bank of England) $997,425 on 11/9. Problem 15.7A No check figures given. Problem 15.8A Percentage of sales in 2007 (part b) = 9.57% Solutions to Problem Set B Problem 15.1B Profit in kr (part a) = kr 8,375 Problem 15.2B Debit Inventory $3,000,000 on 12/1. Problem 15.3B Gross profit = $228.50 (if C$ = $0.70) Problem 15.4B Profit per unit (Malaysia) = 181.50 Ringgits Problem 15.5B No check figures given. Problem 15.6B Debit Accounts Receivable (British Vibes) $320,000 on 11/15. Problem 15.7B No check figures given.

Chapter 16 Solutions to Problem Set A Problem 16.1A Ending finished goods inventory (part a) = $78,000 Problem 16.2A Cost of goods sold (part c) = $2,880,000 Problem 16.3A Total manufacturing costs (part e) = $613,400 Problem 16.4A Cost of finished goods manufactured (part f) = $951,000 Problem 16.5A Cost of goods sold (part a) = $1,000,600 Problem 16.6A Cost of goods sold (part a) = $827,985 Problem 16.7A Cost of goods sold (part c) = $1,110,000 Problem 16.8A Cost of finished goods manufactured (part a) = $383,500 Solutions to Problem Set B Problem 16.1B Ending finished goods inventory (part a) = $90,000 Problem 16.2B Cost of goods sold (part c) = $2,400,000 Problem 16.3B Overhead rate (part e) = 150% Problem 16.4B Total cost charged to work in process (part f) = $994,000 Problem 16.5B Cost of goods sold (part a) = $1,049,000 Problem 16.6B Cost of goods sold (part a) = $979,450 Problem 16.7B Cost of goods sold (part c) = $1,016,000 Problem 16.8B Cost of finished goods manufactured (part a) = $376,000

Chapter 17 Solutions to Problem Set A Problem 17.1A Debit Work in Process Inventory $34,500 (part b). Problem 17.2A Debit Work in Process Inventory $56,200 (part b). Problem 17.3A Application rate based on machine hours (part a) = $35 per MH Problem 17.4A Debit Cost of Goods Sold $11,000 (part c). Problem 17.5A Total cost of Job 2 (part b.2) = $7,210 Problem 17.6A Inspection costs allocated to Bitrite (part c) = $16,000 Problem 17.7A Repair costs allocated to A3B4 (part b) = $2,500 Problem 17.8A Total costs allocated to Basic Chunks (using ABC) = $125,370 Solutions to Problem Set B Problem 17.1B Debit Work in Process Inventory $57,000 (part b). Problem 17.2B Debit Work in Process Inventory $98,000 (part b). Problem 17.3B Application rate based on machine hours (part a) = $20 per MH Problem 17.4B Debit Cost of Goods Sold $33,000 (part c). Problem 17.5B Total cost of Job 2 (part b.2) = $196 Problem 17.6B Inspection costs allocated to Caltrate (part c) = $750,000 Problem 17.7B Setup costs allocated to boots (part b) = $31,250 Problem 17.8B Total costs allocated to Tabby Treat (using ABC) = $167,780

Chapter 18 Solutions to Problem Set A Problem 18.1A Units started and completed in July (part b) = 2,100 Problem 18.2A Cost per unit (part a.1) = $45 Problem 18.3A Cost per unit of direct materials = $61.50 Problem 18.4A Debit Work in Process: Mixing Dept. $12,600 (part a) Problem 18.5A Cost per unit of conversion (part b) = $4 Problem 18.6A Cost per unit of direct materials = $3 Problem 18.7A Cost per unit of direct materials (part a) = $14 Problem 18.8A Cost per unit of conversion (part a) = $8 Solutions to Problem Set B Problem 18.1B Units started and completed in April (part b) = 2,400 Problem 18.2B Cost per unit (part a.1) = $49 Problem 18.3B Cost per unit of direct materials = $112 Problem 18.4B Debit Work in Process: Mixing Dept. $120,000 (part a) Problem 18.5B Cost per unit of conversion (part b) = $7 Problem 18.6B Cost per unit of direct materials = $4 Problem 18.7B Cost per unit of direct materials (part a) = $18 Problem 18.8B Cost per unit of conversion (part a) = $6

Chapter 19 Solutions to Problem Set A Problem 19.1A Value-added time (part d) = 25 days Problem 19.2A Target cost (part a) = $187 Problem 19.3A Target cost (part a) = $6.40 Problem 19.4A Year 1 total quality costs (part a) = $88,400 Problem 19.5A No check figures given. Problem 19.6A Profit increase (part b) = $455,000 Problem 19.7A Total non-value added costs (part b) = $25,750 Problem 19.8A No check figures given. Solutions to Problem Set B Problem 19.1B Value-added time (part d) = 60 days Problem 19.2B Target cost (part a) = $90 Problem 19.3B Target cost (part a) = $8.20 Problem 19.4B Year 1 total quality costs (part a) = $96,000

Chapter 20 Solutions to Problem Set A Problem 20.1A Required sales price (part a) = $100 Problem 20.2A Sales per unit (part a) = $105 Problem 20.3A Total fixed costs = $225,000 Problem 20.4A Contribution margin ratio (part a) = 40% Problem 20.5A Contribution margin per unit (part a) = $0.45 Problem 20.6A Contribution margin per unit (part b) = $37 Problem 20.7A Clownfish operating income (part a) = $186,750 Problem 20.8A Monthly break-even in sales volume (part b) = $945,000 Solutions to Problem Set B Problem 20.1B Required sales price (part a) = $140 Problem 20.2B Sales per unit (part a) = $67 Problem 20.3B Total fixed costs = $149,940 Problem 20.4B Contribution margin ratio (part a) = 40% Problem 20.5B Contribution margin per unit (part a) = $2 Problem 20.6B Contribution margin per unit (part b) = $8.80 Problem 20.7B Cod operating income (part a) = $214,000 Problem 20.8B Monthly break-even in sales volume (part b) = $1,200,000

Chapter 21 Solutions to Problem Set A Problem 21.1A Expected increase in operating income (part a) = $250,000 Problem 21.2A Benefit of buying motors (part b) = $157,500 Problem 21.3A Benefit of buying thermostats (part b) = $26,000 Problem 21.4A Contribution margin per MH Model 100 (part a) = $31 Problem 21.5A Sunk costs (part b) = $450,000 Problem 21.6A Benefit of selling to foreign buyer (part a) = $1,100,000 Problem 21.7A Benefit to process into Sea Powder (part a) = $1,000 Problem 21.8A No check figures given. Solutions to Problem Set B Problem 21.1B Expected increase in operating income (part a) = $225,000 Problem 21.2B Benefit of buying motors (part b) = $305,000 Problem 21.3B Benefit of buying switches (part b) = $149,000 Problem 21.4B Contribution margin per MH Model B (part a) = $39 Problem 21.5B Sunk costs (part b) = $150,000 Problem 21.6B Benefit of selling to foreign buyer (part a) = $1,360,000 Problem 21.7B Benefit to process into Mint Powder (part a) = $10,000 Problem 21.8B Contribution margin per DLH Gloves (part a) = $15

Chapter 22 Solutions to Problem Set A Problem 22.1A Product responsibility margin Bottled Water (part a) = $125,000 Problem 22.2A Product responsibility margin Jewelry Line (part a) = $160,000 Problem 22.3A Division responsibility margin Commercial Sales (part a) = $330,000 Problem 22.4A Division responsibility margin FasTrack (part a) = $160,000 Problem 22.5A Expected responsibility margin increase Product B (part a) = $800 Problem 22.6A Increased sales required (part c) = $16,000 Problem 22.7A Contribution margin Motor Division (part a) = $3,300,000 Problem 22.8A Operating profit Green Division (part a) = $70,000 Solutions to Problem Set B Problem 22.1B Product responsibility margin Zippers (part a) = $18,000 Problem 22.2B Product responsibility margin Bag Line (part a) = $150,000 Problem 22.3B Division responsibility margin Deluxe Division (part a) = $500,000 Problem 22.4B Division responsibility margin Economy (part a) = $260,000 Problem 22.5B Expected responsibility margin increase Product C (part a) = $4,500 Problem 22.6B Increased sales required (part c) = $10,000 Problem 22.7B Contribution margin Motor Division (part a) = $5,400,000 Problem 22.8B Operating profit Frame Division (part a) = $66,500

Chapter 23 Solutions to Problem Set A Problem 23.1A Ending finished goods inventory (part c) = $770,000 Problem 23.2A Ending finished goods inventory (part c) = $780,000 Problem 23.3A Ending cash balance = $46,800 Problem 23.4A Payments on current payables (part b) = $330,000 Problem 23.5A Budgeted income (part a) = $5,655 Problem 23.6A Ending September cash (part a) = $162,500 Problem 23.7A Operating income over budget (part a) = $178,500 Problem 23.8A Total manufacturing costs under budget (part a) = $27,000 Solutions to Problem Set B Problem 23.1B Ending finished goods inventory (part c) = $646,750 Problem 23.2B Ending finished goods inventory (part c) = $1,140,000 Problem 23.3B Ending cash balance = $93,950 Problem 23.4B Payments on current payables (part b) = $427,000 Problem 23.5B Budgeted income (part a) = $16,500 Problem 23.6B Ending September cash (part a) = $376,800 Problem 23.7B Operating income over budget (part a) = $2,360,000 Problem 23.8B Total manufacturing costs under budget (part a) = $55,000

Chapter 24 Solutions to Problem Set A Problem 24.1A Debit Work in Process Inventory $8,700 (part c). Problem 24.2A Materials price variance (part a) = $3,075 favorable Problem 24.3A Debit Finished Goods Inventory $270,000 (part b). Problem 24.4A Labor rate variance (part b) = $1,100 favorable Problem 24.5A Labor efficiency variance (part b) = $7,200 unfavorable Problem 24.6A Overhead spending variance (part c) = $600 unfavorable Problem 24.7A Overhead volume variance (part a) = $3,000 unfavorable Problem 24.8A Material used in June (part a) = 8,200 pounds Problem 24.9A Actual price (part a) = $0.30 per square foot Solutions to Problem Set B Problem 24.1B Debit Work in Process Inventory $8,400 (part c). Problem 24.2B Materials price variance (part a) = $20,500 favorable Problem 24.3B Debit Finished Goods Inventory $300,000 (part b). Problem 24.4B Labor rate variance (part b) = $625 favorable Problem 24.5B Labor efficiency variance (part b) = $4,500 unfavorable Problem 24.6B Overhead spending variance (part c) = $260 favorable Problem 24.7B Overhead volume variance (part a) = $2,000 unfavorable Problem 24.8B Material used in June (part a) = 1,500 pounds Problem 24.9B Actual price (part a) = $0.24 per square foot

Chapter 25 Solutions to Problem Set A Problem 25.1A ROI Empire Hotel (part a) = 17.14% Problem 25.2A No check figures given. Problem 25.3A Managers bonus (part b) = $41,000 Problem 25.4A United States ROI Year 2 (part a) = 12.8% Problem 25.5A Operating Income Project A-1 (part d) = $21,150 Problem 25.6A No check figures given. Problem 25.7A No check figures given. Problem 25.8A No check figures given. Problem 25.9A ROI (part a) = 15% Solutions to Problem Set B Problem 25.1B ROI Golf Courses (part a) = 40% Problem 25.2B No check figures given. Problem 25.3B Managers bonus (part b) = $34,500 Problem 25.4B United States ROI Year 2 (part a) = 23.58% Problem 25.5B Operating Income Project A-2 (part d) = $32,400 Problem 25.6B No check figures given. Problem 25.7B No check figures given. Problem 25.8B No check figures given. Problem 25.9B ROI (part a) = 18.35%

Chapter 26 Solutions to Problem Set A Problem 26.1A Payback period (part c) = 2.3 years Problem 26.2A Return on average investment Proposal 1 (part a) = 16.7% Problem 26.3A Payback period Proposal B (part a) = 3.7 years Problem 26.4A Net present value Proposal B (part a) = ($10,845) Problem 26.5A Net present value Proposal A (part a) = ($30,000) Problem 26.6A Net present value (part c) = $16,950 Problem 26.7A Net present value (part c) = $1,350 Problem 26.8A Net present value chair lift (part c) = $19,720 Problem 26.9A Net present value software bank installation (part c) = $24,880

Solutions to Problem Set B Problem 26.1B Payback period (part c) = 1.25 years Problem 26.2B Return on average investment Proposal 1 (part a) = 20% Problem 26.3B Payback period Proposal B (part a) = 4.3 years Problem 26.4B Net present value Proposal B (part a) = ($4,620) Problem 26.5B Net present value Proposal A (part a) = ($25,600) Problem 26.6B Net present value (part c) = $256,973 Problem 26.7B Net present value (part c) = ($276,713) Problem 26.8B Net present value chair lift (part c) = $33,760 Problem 26.9B Net present value memory stick (part c) = $365,200