42. A corporation reported cash of $28,200 and total assets of $467,000 on its b

Question

42. A corporation reported cash of $28,200 and total assets of $467,000 on its balance sheet. Its common-size percent for cash equals:

Multiple Choice

6.04%.

60.40%.

1656%.

16.56%.

100.00%.

43. Zhang Company reported Cost of goods sold of $845,000, beginning Inventory of $39,200 and ending Inventory of $47,300. The average Inventory amount is:

Multiple Choice

$86,500.

$8,100.

$47,300.

$43,250.

$39,200.

44. Chang Industries has 1,200 defective units of product that have already cost $13.20 each to produce. A salvage company will purchase the defective units as they are for $4.20 each. Chang's production manager reports that the defects can be corrected for $6.80 per unit, enabling them to be sold at their regular market price of $19.40. The incremental income or loss on reworking the units is:

Multiple Choice

$8,160 loss.

$18,240 income.

$15,120 income.

$10,080 income.

$10,080 loss.

45. On its December 31, 2017, balance sheet, Calgary Industries reports equipment of $400,000 and accumulated depreciation of $80,000. During 2018, the company plans to purchase additional equipment costing $86,000 and expects depreciation expense of $33,000. Additionally, it plans to dispose of equipment that originally cost $45,000 and had accumulated depreciation of $6,200. The balances for equipment and accumulated depreciation, respectively, on the December 31, 2018 budgeted balance sheet are:

Multiple Choice

$441,000; $106,800.

$441,000; $113,000.

$486,000; $113,000.

$355,000; $80,000.

$486,000; $106,800.

Explanation / Answer

42 Common-size percent for cash = (28200/467000)= 6.04% 43 Average Inventory = (39200+47300)/2= 43250 44 Incremental income or loss = 1200*(19.4-4.2-6.8)= 10080 Income 45 Balances for equipment = 400000+86000-45000= 441000 Balance for accumulated depreciation=80000+33000-6200= 106800

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