Math 2 - Speech or Presentation Example

PRINCIPLES of ACCOUNTING I November 15-16, 2008 MICHAEL J. MOTES, CPA ACCT 220 Fall 2008 Page of 4 Exam Two Online WebTycho Part s:There are no explanations required for any General Journal entries. Your WebTycho Exam II Part I solution must be posted to your Individual Student Assignment folder no later than midnight on November 16, 2008. You may attach either a Microsoft Word, Excel or an Adobe Acrobat PDF file with your solution.Page 2 of 4 Exam Two Online WebTycho Part 1Q-1: Points = 5 : Elton-Company.1.a.

mjmIncome-StatementFor-the-Year-Ended-December 31, 2007Net sales$1,200,000Cost of goods sold660,000 Gross Profit540,000Operating Expenses Selling expenses45,000 Administrative expenses234,000 Total Operating Expenses279,000Operating Income261,000Non-operating income (expenses) Dividend revenue38,000 Interest expense(58,000) Loss from employee strike(233,000) Total Non-Operating Income (Expenses)(253,000)Net Income$8,000Page 3 of 4 Exam Two Online WebTycho Part 1Q-2: Points = 10 : a. Inventory turnover for Total Inventory for the following years (round to the nearest tenth). 2003 = 9.4 2002 = 10.

0 2001 = 6.5 2000 = 5.4 1999 = 5.0b. In the year 2001 there was a significant change in the inventory turnover. Use the Boston Beer Company 2001 Annual report provided in Exam Two conference to determine the cause and provide a brief explanation.The significant change was due to the big drop (about 41%) in total inventories from 2000 to 2001. The decrease was more than enough to cover the 3% decrease in cost of goods sold, resulting to a lower denominator (average inventories). According to the 2001 annual report, the drop in the inventory level was due to a $3.

2 million inventory loss, recorded as cost of goods sold. resulting from the cancellation of several hop future contracts. The same report also disclosed that the “transactions were deemed necessary in order to bring hop inventory levels and future contracts into balance with the Company’s current brewing volume and hop usage, as the Company did not believe that these hop inventories and future hop contracts would be used by the Company within the foreseeable future”.Page 4 of 4 Exam Two Online WebTycho Part 1Q-3: Points = 5 : General-Journal-for-Walsh-Company.1.a.

mjmDateAccountDebitCreditDec. 31, Freight in19.402007Postage40.00Miscellaneous 18.00Meals25.00Due from petty cashier2.00 Petty Cash Fund104.40To book expenses incurred through the petty cash fund.Petty Cash Fund104.40 Cash104.40To book replenishment of petty cashfund.Dec. 31,Petty Cash Fund100.002007 Cash100.00To book the increase in the petty cash fund from $200 to $300.