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ch of the following would NOT be considered an inventoriable productcost in an automated manufacturing environment?

rent paid on the production facilities

wages paid to the factory machine operators

depreciation on the equipment in the factory

delivery charges paid for finished goods shipped to customers

2)An inflow of cash from an investing activity would be ________.

assuming a long term debt
selling a piece of equipment
issuing common stock

receiving cash for sales to customers on account

3)Which of the following statements does NOT accurately describe the information provided by the statement of cash flows?

provide managers with a tool to assess if cash flows are sufficient to meet operational demands
provide information relevant to the decision to make cash distributions to owners of the company
provide a format for calculating net income on the accrual basis of accounting

4)What is the current ratio for Company A calculated using the following Balance Sheet?

Company A

Balance Sheet

December 31, 2010

Assets

Cash

$29,000

Accounts receivable (net)

114,000

Inventory

113,000

Prepaid expenses

6,000

Long-term investments

18,000

Net property, plant, and equipment

507,000

Total assets

$787,000

Liabilities and equity

Accounts payable

$73,000

Note payable

358,000

Common stock

186,000

Retained earnings

170,000

Total liabilities and equity $787,000

3.59
1.96
1.42
1.83

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Casey Durgan
Casey DurganLv2
30 Sep 2019

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PROBLEM 14-8 Classification of Transactions (L014-1] Below are several transactions that took place in Seneca Company last year a. Paid suppliers for inventory purchases. b. Bought equipment for cash. c. Paid cash to repurchase its own stock. d. Collected cash from customers. e. Paid wages to employees. f. Equipment was sold for cash. g. Common stock was sold for cash to investors. h. Cash dividends were declared and paid. i. A long-term loan was made to a supplier. j. Income taxes were paid to the government. k. Interest was paid to a lender. 1. Bonds were retired by paying the principal amount due. Required: Prepare an answer sheet with the following headings: Activity Investing Transaction Operating Financing Cash Inflow Cash Outflow Etc. Enter the transactions above on your answer sheet and indicate how each of them would be clas- sified on a statement of cash flows. As appropriate, place an X in the Operating, Investing, or Financing column. Also, place on X in the Cash Inflow or Cash Outflow column.

Effect of product versus period costs on financial statements HoenManufacturing Company experienced the following accounting eventsduring its first year of operation. With the exception of theadjusting entries for depreciation, all transactions are cashtransactions.
1. Acquired $ 50,000 cash by issuing common stock.
2. Paid $ 8,000 for the materials used to make products, all ofwhich were started and completed during the year.
3. Paid salaries of $ 4,400 to selling and administrativeemployees.
4. Paid wages of $ 7,000 to production workers.
5. Paid $ 9,600 for furniture used in selling and administrativeoffices. The furniture was acquired on January 1. It had a $ 1,600estimated salvage value and a four- year useful life.
6. Paid $ 13,000 for manufacturing equipment. The equipment wasacquired on January 1. It had a $ 1,000 estimated salvage value anda three- year useful life.
7. Sold inventory to customers for $ 25,000 that had cost $ 14,000to make.
Required Explain how these events would affect the balance sheet,income statement, and statement of cash flows by recording them ina horizontal financial statements model as indicated here. Thefirst event is recorded as an example. In the Cash Flow column,indicate whether the amounts represent financing activities ( FA),investing activities ( IA), or operating activities ( OA).
Hoen Manufacturing Company experienced the following accountingevents during its first year of operation. With the exception ofthe adjusting entries for depreciation, all transactions are cashtransactions.

1. Acquired $50,000 cash by issuing common stock.
2.Paid $8,000 for the materials used to make products, all of whichwere started and completed during the year.
3.Paid salaries of $ 4,400 to selling and administrativeemployees.
4.Paid wages of $7,000 to production workers.
5.Paid $ 9,600 for furniture used in selling and administrativeoffices. The furniture was acquired on January 1. It had a $1,600estimated salvage value and a four- year useful life.
6.Paid $13,000 for manufacturing equipment. The equipment wasacquired on January 1. It had a $1,000 estimated salvage value anda three- year useful life.
7.Sold inventory to customers for $25,000 that had cost $14,000 tomake

Required

Explain how these events would affect the balance sheet, incomestatement, and statement of cash flows by recording them in ahorizontal financial statements model as indicated here. The firstevent is recorded as an example. In the Cash Flow column, indicatewhether the amounts represent financing activities (FA), investingactivities (IA), or operating activities (OA).

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