Utease Corporation: COMPREHENSIVE PROBLEM 6: Utease Corporation Utease Corporation Utease Corporation Utease Corporation Utease Corporation

Financial and Managerial Accounting
Williams Haka Bettner

COMPREHENSIVE PROBLEM 6 (CP6): Utease Corporation

Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows:

AND SO ON

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The Gilster Company: COMPREHENSIVE PROBLEM 5: The Gilster Company The Gilster Company The Gilster Company

Financial and Managerial Accounting
Williams Haka Bettner

COMPREHENSIVE PROBLEM 5 (CP5): The Gilster Company

The Gilster Company, a machine tooling firm, has several plants. One plant located in St. Falls, Minnesota, uses a job order costing system for its batch production processes.

AND SO ON

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The Home Depot, Inc: COMPREHENSIVE PROBLEM 4 : The Home Depot, Inc The Home Depot, Inc The Home Depot, Inc The Home Depot, Inc The Home Depot, Inc

Financial and Managerial Accounting
Williams Haka Bettner

COMPREHENSIVE PROBLEM 4 (CP4): The Home Depot, Inc

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Instructions: Answer each of the following questions and briefly explain where in the statements, notes, or other sections of the annual report you located the information used in your answer.

a. How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors' conclusions concerning these statements?
b. Home Depot combines its statement of retained earnings with another financial statement. Where are details about changes in the amount of retained earnings fund?
c. Over the three years presented, have the company's annual net cash flows been positive or negative from 1) operating activities, 2) investing activities, and 3) financing activities? Has the company's cash balance increased or decreased during each of these three years?

Part II

Home Depot wants to make credit purchases from your company, with payment due in 60 days assuming you are a credit manager of a medium sized supplier.

a. read the first note to the financial statements, "Summary of Significant Accounting Policies". Compute the following for the fiscal years ending feb. 3, 2008, and jan. 28, 2007 (round percentages to the nearest tenth of 1 percent, and other computations to one decimal place):
1. Current Ratio
2. Quick Ratio
3. Amount of Working Capital
4. Percentage change in working capital from the prior year
5. Percentage change in cash and cash equivalents from the prior year.

B. Based upon your analysis in part a, does teh company's liquidity appear to have increased or decreased during the most recent fiscal year? Explain.

C. Other than the ability of Home Depot to pay for it's purchases, do you see any major considerations that should enter into your company's decision? Explain.

D. Your company assigns each customer one of the four credit ratings listed below. Assign a credit rating to Home Depot and write a memorandum explaining your decision.

Possible Credit Ratings:

A- Outstanding
B- Good
C- Marginal
D- Unacceptable

Part III
a. compute the following for the fiscal years ending Feb. 3, 2008 and jan. 28, 2007 (round percentages to the nearest tenth):

1. percentage change in net sales (relative to the prior year)
2. Percentage change in net earnings
3. Gross profit rate.
4. Net income as a percentage of sales.
5. Return on average total assets.
6. Return on average total equity.

B. Write a statement that describes your conclusion(s) concerning rends in Home Depot's profitability during the period covered in your analysis in part a above2009, following these guidelines:

AND SO ON

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Guitar Universe, Inc: COMPREHENSIVE PROBLEM 2: Guitar Universe, Inc

Financial and Managerial Accounting
Williams Haka Bettner

COMPREHENSIVE PROBLEM 2 (CP2): Guitar Universe, Inc

Guitar Universe, Inc., is a popular source of musical instruments for professional and amateur musicians. The company's accountants make necessary adjusting entries monthly, and they make all closing entries annually. Guitar Universe is growing rapidly and prides itself on having no long-term liabilities.

The company has provided the following trial balance dated December 31, 2009:

AND SO ON

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McMinn Retail, Inc: COMPREHENSIVE PROBLEM 3: McMinn Retail, Inc

Financial and Managerial Accounting
Williams Haka Bettner

COMPREHENSIVE PROBLEM 3 (CP3): McMinn Retail, Inc

McMinn Retail, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2009. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the “normal” balance for that account. (Hint: The “normal” balance is the same as the debit or credit side that increases the account.)

Instructions

1. Prepare an income statement for the year ended December 31, 2009, which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than cost of goods sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share.
2. Prepare a statement of retained earnings for the year ending December 31, 2009.
3. Prepare a statement of financial position (balance sheet) as of December 31, 2009, following these guidelines:

AND SO ON

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