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Financial & Managerial Accounting problem.

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A condensed balance sheet for Bradford Corporation Prepared at the end of the year appears as follows:
Assets Liabilities & Stockholders' Equity
Cash........................................... $ 95,000 Notes payable (due in
Accounts receivable............... 155,000 6 months)........................... $ 40,000
Inventory................................. 270,000 Accounts payable.................. 110,000
Prepaid expenses................... 60,000 Long-term liabilities............. 360,000
Plant & equipment (net)....... 570,000 Capital stock, $ 5 par............ 300,000
Other assets............................. 90,000 Retained earnings................. 430,000
Total.......................................... $ 1,240,000 Total........................................ $ 1,240,000

During the year the company earned a gross profit of $ 1,116,000 on sales of $ 2,950,000. Accounts receivable, inventory and plant assets remained almost constant in amount throughout the year.
Compute the following:
a. Current ratio.
b. Quick ratio.
c. Working capital.
d. Debt ratio.
e. Accounts receivable turnover (all sales were on credit).
f. Inventory turnover.
g. Book value per share of capital stock.

Please see attached file for the formatted chart.

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Financial & Managerial Accounting problem
A condensed balance sheet for Bradford Corporation Prepared at the end of the year appears as follows:
Assets Liabilities & Stockholders' Equity
Cash........................................... $ 95,000 Notes payable (due in
Accounts receivable............... 155,000 6 months)........................... $ 40,000
Inventory................................. 270,000 Accounts payable.................. 110,000
Prepaid expenses................... 60,000 Long-term ...

Solution Summary

Solution helps in estimating Accounts receivable turnover and other ratios. Includes Excel file.

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BYP2-1 Managerial Accounting/ Job Costing

BYP2.1 Du Page Products Company uses a job order cost system. For a number of months
there has been an ongoing rift between the sales department and the production
department concerning a special.order product, TC.1. TC.1 is a seasonal product
that is manufactured in batches of 1,000 units. TC.1 is sold at cost plus a markup
of 40% of cost.
The sales department is unhappy because fluctuating unit production costs
significantly affect selling prices. Sales personnel complain that this has caused
excessive customer complaints and the loss of considerable orders for TC.1.
The production department maintains that each job order must be fully costed on
the basis of the costs incurred during the period in which the goods are produced.
Production personnel maintain that the only real solution to the problem is for the
sales department to increase sales in the slack periods.
Sandra Devona, president of the company, asks you as the company accountant
to collect quarterly data for the past year on TC.1. From the cost accounting system,
you accumulate the following production quantity and cost data.

Quarter
Costs 1 2 3 4
Direct materials $100,000 $220,000 $80,000 $200,000
Direct labor 60,000 132,000 48,000 120,000
Manufacturing 105,000 123,000 97,000 125,000
overhead
Total 265,000 475,000 225,000 445,000 225,000

Production in 5 11 4 10
batches
(per
batch)

Unit cost (per $53,000 $43,182 $56,250 $44,500
batch)

Instructions
With the class divided into groups, answer the following questions.
a. What manufacturing cost element is responsible for the fluctuating unit costs?
Why?
b. What is your recommended solution to the problem of fluctuating unit costs?
c. Restate the quarterly data on the basis of your recommended solution.

The problem is located in Chapter 2.

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