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- Download: http://solutionzip.com/downloads/bu330-accounting-for-managers/
- BU330 Accounting for Managers
- Part 1:
- Factoring resource constraints into product mix decisions
- Rose Incorporated manufactures two types of vases, small and large. The following per-unit data are available.
- Small Vase Large Vase
- Sale price $60 $100
- Variable costs $35 $60
- Machine hours required for 1 vase 1 2
- Total fixed costs are $600,000, and Rose Incorporated can sell a maximum of 25,000 units of each type of vase annually. Machine hour capacity is 50,000 hours per year.
- a. Determine the contribution margin per unit for each type of vase.
- b. Determine the contribution margin per machine hour for each type of vase.
- c. Determine the number of units of each style of vase that Rose Incorporated should produce to maximize operating income.
- d. What is the dollar amount of the maximum operating income as calculated in C above?
- Part 2:
- Financial Statement Analysis
- The following information relates to Harris Corporation.
- Account Current year Prior year
- Net sales (all credit) $520,125 $499,500
- Cost of goods sold $375,960 $353,600
- Gross profit $144,165 $145,900
- Income from operations $ 95,500 $ 79,900
- Interest expense $ 23,500 $ 19,500
- Net income $ 57,600 $ 51,600
- Cash $ 30,600 $ 15,900
- Accounts receivable, net $ 33,800 $ 23,200
- Inventory $ 42,000 $ 30,300
- Prepaid expenses $ 2,000 $ 1,500
- Total current assets $ 108,400 $ 70,900
- Total long-term assets $ 62,000 $ 38,000
- Total current liabilities $ 46,000 $ 41,600
- Total long-term liabilities $ 20,000 $ 22,700
- Common stock, no par,
- 3,000 shares, value $50/share $ 30,000 $ 30,000
- Required:
- a. What is the acid-test ratio for the current year?
- b. What is the inventory turnover for the current year?
- c. What is days’ sales in receivables for the current year?
- d. What is the book value per share of common stock for the current year?
- e. What is the price-earnings ratio for the current year?
- f. What is the rate of return on total assets for the current year?
- g. What is the times-interest-earned ratio for the current year?
- h. What is the current ratio for the current year?
- Download: http://solutionzip.com/downloads/bu330-accounting-for-managers/
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