Managerial accounting 515
Midterm Exam
You will have 2 ½ hours to complete the exam. The exam is open note and open book, everything but open conversation. There are nine (9) problems worth 30 points each. Take your time. You cannot stop and restart the exam.
You will not need a proctor for the exam.
You will need to know how to calculate the following:
Product costs
Period costs
Variable costs
Fixed costs
High-low method
Prepare a contribution format income statement
Prepare a traditional format income statement
Schedule of cost of goods sold
Compute the company's predetermined overhead rate.
Unit product costs
Prepare a Schedule of Cost of Goods Manufactured
Prepare a Schedule of Cost of Goods Sold
Weighted Average method
Construct a cost reconciliation
Compute the following items:
a. Unit contribution margin.
b. Contribution margin ratio.
c. Break-even in dollar sales.
d. Margin of safety percentage
Net operating income
Break-even points
How change in selling price affects income
How change in expenses affects net income
Target profit
Margin of Safety
Degree of operating leverage
Sales mix shifts
Absorption costing
Variable costing
Segmented income statement
Free cash flow
Statement of Cash Flows
Compute the following for Year:
a. Working capital.
b. Current ratio.
c. Acid-test ratio.
d. Accounts receivable turnover.
e. Average collection period.
f. Inventory turnover.
g. Average sale period.
Compute the following for Year:
a. Earnings per share (of common stock).
b. Price-earnings ratio.
c. Dividend payout ratio.
d. Dividend yield ratio.
e. Return on total assets.
f. Return on common stockholders' equity.
g. Book value per share.
Comparative and common-size analyses of the company’s performance for the two years presented.
Average collection period
Inventory turnover
Return on common stock equity
You will have 2 ½ hours to complete the exam. The exam is open note and open book, everything but open conversation. There are nine (9) problems worth 30 points each. Take your time. You cannot stop and restart the exam.
You will not need a proctor for the exam.
You will need to know how to calculate the following:
Product costs
Period costs
Variable costs
Fixed costs
High-low method
Prepare a contribution format income statement
Prepare a traditional format income statement
Schedule of cost of goods sold
Compute the company's predetermined overhead rate.
Unit product costs
Prepare a Schedule of Cost of Goods Manufactured
Prepare a Schedule of Cost of Goods Sold
Weighted Average method
Construct a cost reconciliation
Compute the following items:
a. Unit contribution margin.
b. Contribution margin ratio.
c. Break-even in dollar sales.
d. Margin of safety percentage
Net operating income
Break-even points
How change in selling price affects income
How change in expenses affects net income
Target profit
Margin of Safety
Degree of operating leverage
Sales mix shifts
Absorption costing
Variable costing
Segmented income statement
Free cash flow
Statement of Cash Flows
Compute the following for Year:
a. Working capital.
b. Current ratio.
c. Acid-test ratio.
d. Accounts receivable turnover.
e. Average collection period.
f. Inventory turnover.
g. Average sale period.
Compute the following for Year:
a. Earnings per share (of common stock).
b. Price-earnings ratio.
c. Dividend payout ratio.
d. Dividend yield ratio.
e. Return on total assets.
f. Return on common stockholders' equity.
g. Book value per share.
Comparative and common-size analyses of the company’s performance for the two years presented.
Average collection period
Inventory turnover
Return on common stock equity