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Which one of the following is fixed cost ?
a) Depreciation of fixed assets b) exerduty c) cost of advertising d) sals tax
Problem 4.
A room operation had an average room rate of P480.00 in the first year, P440.00 in year two, and P530.00 in year three. You are to establish an index trend starting with the average room rate for first year and determine the index trend numbers for year two and year three.
Problem 2.
A restaurant owner expressed concern regarding the changes in cash, credit card receivables, food and beverage inventories accounts in the months of July and August of the current year. He wants you to show him the peso changes and the percentage of change for each of these accounts using comparative analysis.
July
August
Cash
P 8,880
P 7,104
Credit card receivables
1,240
1,984
Food inventories
4,480
6,272
Beverage inventories
2,220
1,887
Total current assets
P 16,820
P 17,247
Problem 3.
After being shown the comparative analysis (Problem 2), the owner now wants to see a common-size (vertical) analysis. Using the same data from Problem 2, prepare a common-size analysis for July and August.
Problem 1.
Foxtail Hotel
Comparative Statement of Comprehensive Income
Years Ended December 31, 2019 and 2020
2019
2020
Total Revenue
P 410,000
P 373,000
Expenses:
Cost of goods sold
202,000
188,000
Selling and general expenses
98,000
93,000
Interest expenses
7,000
4,000
Income tax expenses
42,000
37,000
Total Expenses
P 349,000
P 322,000
Net Income
P 61,000
P 51,000
Requirements:
1. Prepare a horizontal analysis. Round percentage changes to the nearest one-tenth percent (three decimal places).
2. Why did net income decrease by a higher percentage than total revenues decreased during 2020?
3. The cash account of JM Company has a beginning balance of P129,937.50. Its year-end balance stands at P254,925. The table below shows the summarized transactions from the cash account of JM Company.
Cash received from customers P 725,175.00
Payments to suppliers 300,547.50
Payments for other operating expenses 58,850.00
Salaries paid 19,992.50
Purchase of equipment 253,000.00
Sale of delivery equipment 6,875.00
Proceeds from sale of computer equipment 47,762.50
Withdrawals of owners 229,350.00
Proceeds from bank loan 82,500.00
Contributions of owners 137.500.00
Interest paid 8,085.00
Requirements:
1. How much is cash flow from operating activities?
2. How much is cash flow from investing activities?
3. How much is cash flow from financing activities?
4. Is JM Company’s statement of cash flows reconciles with the balance of the cash account as of the end of the year? Show your computation.
2. Below are the cash transactions of Malaysia Trading for December 31, 2019:
Cash payment to suppliers of goods and services P 65,000
Cash receipts from rendering of services 130,000
Payment to owners 13,000
Proceeds from bank loans 65,000
Proceeds from cash investment of owners 299,000
Payment for acquisition of equipment 26,000
Cash at the beginning of the year 260,000
Requirements:
1. How much is cash flow from operating activities?
2. How much is cash flow from investing activities?
3. How much is cash flow from financing activities?
4. How much is the net increase or decrease in cash for the year?
5. How much is cash as of December 31, 2019.
1. Below are the cash transactions of Kenya Co. for December 31, 2019:
Cash payment to suppliers of goods and services P 25,000
Cash receipts from rendering of services 50.000
Payment to owners 5,000
Proceeds from bank loans 25,000
Proceeds from cash investment of owners 115,000
Payment for acquisition of equipment 100,000
Cash at the beginning of the year 1,000,000
Requirements:
1. How much is cash flow from operating activities?
2. How much is cash flow from investing activities?
3. How much is cash flow from financing activities?
4. How much is the net increase or decrease in cash for the year?
5. How much is cash as of December 31, 2019.
Jenny has a bank balance of $550 at the start of the week. During the week the following transactions occur.
Day 1
She sells goods on credit for $876
Day 2
She receives a cheque for $400 from a credit customer
Day 3
She purchases office equipment with a list price of $1,000 but receives a 10% discount for paying immediately by cheque
How much does Jenny have in the bank at the end of the week?
On April 1,2020 John’s construction company purchased equipment costing 68,000 the equipment is estimated to have a nine year useful life with no salvage value calculate the amount of the adjustment at the December 31, 2020 year end
Marko Corporation has several assets for classification as biological assets. After reviewing the data gathered shown in the image, how much should Marko report as net gain from change in fair value of biological assets for the quarter? Cocoa pods kept Cows and Cocoa Trees in storage for Sheep the whole period Cost P300,000 P400,000 Carrying Value, April 1, 2020 800,000 900,000 P 200,000 Increase or (decrease) in value from price change (40,000) (50,000) 20,000 Increase or (decrease) in value from physical change 100,000 180,000 50,000
