1. From the below information, calculate the final balance to be carried forward in your check stubs as of the end of October.
Oct. 1 beginning balance $1,200.50
Oct. 8 deposit $300.00
Oct. 12 checks written to bloom company $382.65
Oct. 16 deposit $400.00
Oct. 28 checks written to flex company $185.99
Oct. 31 checks written to Ryan company $88.92
2. Use the information below to determine the values of A, B, C, and D.
Chain discount 18/12
Net price EQ rate (A)
Single EQ rate (B)
Amount of trade discount (C)
Net price (D)
3. A truck costing $25,000 with a residual value of $5,000 was purchased by ram corporation. The truck’s estimated life is 10 years. What is the book value at the end of year 2 using the declining-balance method? Assume a depreciation rate of twice the straight-line rate.
4. Last year’s sales at Mel’s Cinema totaled $144,600. This year’s sales should increase by 1/3. How much should sales increase by, and what will sales be in the New Year?
5. A furniture company produced five times as many beds on shift 2 as it did on shift 1. If a total of 240 beds were produced, how many were produced on each shift?
6. US Airways has a net income of $60,000 before taxes. It’s expected that 45% of the net income will go to federal and state taxes. How much will US Airways have left?
7. Sullivan’s Handbags marks up its bags at 45% of the selling price. Pat Sullivan saw a bag at a trade show that she would sell to her customers for $85.00. What is the most she could pay for the bag and still retain the 45% markup of the selling price?
8. Amy Koy met Pat Quin on September 8 at Queen Bank. After talking with Pat, Amy decided she would like to consider a $9,000 loan at 10 and a half percent to be repaid on February 17 of the next year on exact interest. Calculate the amount that Amy would pay at maturity under this assumption. Round all answers to the nearest cent.
9. On May 12, Bob Campbell accepted a $5,000 note in granting a time extension of a bill for goods bought by Rick Ween. Terms of the note were 8%for 120 days. On July 8, Bob needed to raise cash and discounted the note at Rick’s bank at a discount rate of 9%. Calculate Bob’s proceeds using ordinary interest.
10. The asset turnover of Jerry’s Sleepshop is 3.2. Jerry’s total assets are $32,000. What were Jerry’s net sales?
11. Moore Supermarket began the year with 300 boxes of oat flake cereal with a unit cost of $1.89. During the year, the following additional purchases were made:
May 1 200 boxes@ $2.10/each
June 1 400 boxes @ $2.20/each
August 1 250 boxes @ $2.40/each
At the end of the year, Moore had 475 boxes of oat flakes on the shelf and in the back room. Assuming LIFO calculated the (a) cost of ending inventory and (b) cost of goods sold.
12. Total sales for ApplianceCenter were $205,000 for the week. These sales included a 6% sales tax. What were the actual sales?
13. Joe Rossen opened a pizza shop. He insured his shop for $90,000 for fire. What is his insurance premium if the rate per $100 is $0.83?