problem 1 the following information applies to barnhart company problem 2 the jiffy 500834

Problem 1. The following information applies to Barnhart Company:

Assets

Cash 5,000

Accounts Receivable 12000

Inventory 15,000

Plant and equipment, net of depreciation 20,000

Land 18,000

Total Assets 70,000

Liabilities & Stockholders’ Equity

Accounts payable 4,000

Salaries payable 9,000

Bonds payable (due 2020) 11,000

Capital stock, 20 no par 22,000

Retained earnings 24,000

Total Liabilities & Stockholders’ Equity 70,000

Additional information:

Net Credit Sales = $220,000

Beginning Accounts Receivable = $10,000

Required:

1) Compute Barnhart’s:

a) Quick ratio

b) Current ratio

c) Working capital

d) Accounts receivable turnover

e) Average days to collect receivables

Problem 2. The Jiffy Manufacturing Company started operations in 2012 when it acquired $100,000 from its owners. During the year, the company incurred the following costs:

Raw materials used $ 40,000

Labor 50,000

Overhead 20,000

Selling & Administrative costs 30,000

The company placed 12,000 units into production, completed 10,000 units, and sold 8,000 units. The average selling price was $17 per unit.

Required:

1) Prepare a schedule of cost of goods manufactured and sold for the year ended December 31, 2012.

2) Prepare an income statement for the year ended December 31, 2012.