ProblemThe Quilting Pad is a retail store that sells materials for.docx

ProblemThe Quilting Pad is a retail store that sells materials for
custom quilts. The store has a quilting room where quilters
gather to sew and visit.The store's inventory consists of bolts of
fabrics, spools of thread, and trays of various batting and
backing material. Customers generally select what they need,
and pay for what they use. The retail price of goods is clearly
marked on the bolts, spools, and trays. The Quilting Pad has
virtually no problem with theft or shortages of inventory.It is
virtually impossible to track inventory in any detailed fashion.
The store simply marks up all goods by a constant percentage.
The mark up formula has been consistently applied to all items
in inventory for many years.The Quilting Pad uses the retail
inventory technique. Following is information for
20X7:Beginning inventory at cost$ 46,800Beginning inventory
at retail78,000Cost of purchases of inventory during the
year230,000At the end of the year, the Quilting Pad's inventory
was physically counted and it was determined that $100,000 was
the retail value of goods on hand.Calculate the cost to retail
percentage by analyzing the beginning inventory data. Apply
the retail method to estimate the sales and gross profit for
20X7.
&R&"Myriad Web Pro,Bold"&20B-08.10
B-08.10
WorksheetThe cost to retail percentage is __________.The
following analysis shows that sales of__________ were matched
with cost of sales of _____________. This results in gross
profit of _______________.At Cost
(___% of retail)At RetailBeginning inventory$ 46,800$
78,000Purchases*230,000-Goods available for sale$ -$ -
Sales--Ending inventory**$ -$ 100,000*Purchases at retail
=**Ending inventory at cost =
&L&"Myriad Web Pro,Bold"&12Name:
Date: Section: &R&"Myriad Web

Pro,Bold"&20B-08.10
B-08.10
THREE APPROACHES TO FINANCIAL ANALYSIS
For this assignment, please answer the following questions
using complete sentences. Be sure to answer all parts of the
questions completely.
1. What is vertical analysis? Why would it be useful to use in
financial analysis?
2. What is horizontal analysis? Why would it be useful to use in
financial analysis?
3. Why are ratios used in financial analysis?
4. How are these three approaches to financial analysis
different? Why can't you rely on a single method?
Your initial thesis and outline for your course project paper are
due this module. Your outline will be the skeleton from which
you will write your project. Your outline should contain an idea
for your introduction, thesis, and at least two sections of a body
comprised of an analysis of how the organization or company
you chose measures the effectiveness or results of their health
care and an analysis of how they use their data for quality
improvement. An idea for a conclusion should come at the end.
For further background on thesis statements and outlines, click
the following linked document.
· Thesis and Outline
My Company Selection Assignment is below to use as
reference
The health care company that I chose for my research paper is
the Mayo Clinic. It is a non-profit worldwide organization with
dozens of locations in several states. Its major campuses are
located in Rochester, MD; Scottsdale, and Phoenix AZ; and

Jacksonville, FL. It was founded
in 1889 and the current President is John H. Noseworthy, M.D.
The reason why I selected this company is because it is a
well-known and respected company. The Mayo Clinic in
Minnesota has been recognized as one of the best hospitals in
the nation for 2015-2016 by U.S. News & World Report. (Mayo
Clinic, 2016)
The Mayo Clinic website says they measure their results
by looking at outcome measures, process measures, patient
satisfaction and quality rankings. (Mayo Clinic, 2016) Outcome
results are measures that are result oriented. Some of the
outcome results include the mortality rate, readmission rates,
patient safety indicators and transplant quality indicators. The
processes results are used to evaluate if the specific process
provide effective and timely care. Patient satisfaction asses the
quality of care services offered to both inpatient and outpatient
results by asking the patients questions.
References
Mayo Clinic (2016). About Mayo Clinic. Retrieved from
http://www.mayoclinic.org/
For this assignment, you will perform ratio analysis in order to
compare two companies in the health care industry:
· Johnson & Johnson (JNJ)
· Pfizer (PFE)
In order to perform this analysis, you will need to select 4 ratios
that you would like to evaluate and then find the values of the
same 4 ratios for each company.
The Internet has a number of websites which provide financial

profiles of publically traded companies. Many of these will
provide financial ratios that have already been calculated for
you. Examples include MSN Money, Yahoo Finance, CNN
Money, MarketWatch.com.
1. Lookup the financial profiles for the healthcare companies
above (JNJ and PFE), then find their values for each of the 4
ratios you selected. Detailed instructions for using MSN Money
are provided below; however, other sites will have the ratios as
well.
· Go to MSN Money in your browser, you need to type in the
company name or ticker symbol (e.g. PFE) in order to find the
company information.
· With the company data displayed, scroll down to the
Fundamentals on the left side of the page. This section contains
already calculated ratios that you can use. Be sure to click on
all of the fundamentals listed (not just the key statistics, but
growth, profitability, etc.) to find numerous ratios that you can
use.
2. Once you have the ratios values for each company, provide
your own analysis of what the ratios are showing and how the
companies compare to each other. Based on the ratios, which of
the companies do you think is stronger financially and why?
ProblemAurora Wedding Gowns was burglarized in May of
20X5. It is unclear how many dresses were stolen. Aurora and
its insurance company are currently working to estimate the
dollar value of the stolen goods in order to reach a financial
settlement under the existing property insurance policy.Aurora's
tax return prepared at the end of 20X4 revealed that the
company ended 20X4 with a total inventory of $189,000.
Aurora uses the same inventory accounting methods for tax and
accounting purposes.The insurance company has contacted
Aurora's suppliers and confirmed Aurora's claim that purchases
for 20X5, prior to the date of the burglary, were $376,000. All
inventory was purchased, FOB destination.20X5 Sales taxes

collected by Aurora and remitted to the state, prior to the date
of the theft, were $48,000. The sales tax rate is 6% of sales.An
inventory was taken immediately after the burglary and the cost
of dresses in stock was $123,000.Aurora consistently sells
dresses at a gross profit margin of 45%.Use the gross profit
method to estimate the dollar value of stolen dresses.
B-08.09
WorksheetSales*Cost of goods soldGross profit* Sales =
$48,000/.06 =Beginning inventoryPlus: PurchasesCost of goods
available for saleLess: Ending inventory before theftCost of
goods sold
Pro,Bold"&20B-08.09
B-08.09
ProblemCarson's Camera Store has a number of video recording
cameras in stock. All units are priced to provide a normal profit
margin of $150. Some of these units are quite old. Carson's
has concluded that some "lower-of-cost-or-market" adjustments
may be needed, and has gathered the following unit pricing
data:Beta CamCorder, $900 cost, $950 replacement cost, $300
selling price
VHS CamCorder, $800 cost, $250 replacement cost, $500
selling price
DVD CamCorder, $400 cost, $375 replacement cost, $400
selling price
Blu-Ray CamCorder, $600 cost, $750 replacement cost, $800
selling price(a)What unit value should be attached to each type
of camera, assuming item-by-item application of the lower-of-
cost-or-market rule?(b)Assuming an item-by-item application of
the lower-of-cost-or-market rule, what journal entry is needed
to reduce the Beta CamCorder? 11 such units remain in
stock.(c)As a general rule, is the item-by-item approach

required? Is the item-by-item approach the most
"conservative?"(d)If an item of inventory is written down, but
subsequently recovers in value during a subsequent year, can it
be written back up?
B-08.08
Worksheet(a)BetaVHSDVDBLU-RAYCostVs.
"Market":Replacement costNet realizable valueNRV less normal
profit marginVALUE TO REPORT(b)Loss Due to Decline in
Market Value of InventoryInventoryTo record decline in value
of Beta inventory(Note: Some companies will establish an
allowance account rather than actually reducing the inventory
account.)(c)(d)
Pro,Bold"&20B-08.08
B-08.08
ProblemB. J. Stewart Furniture Company had the following
transactions relating to the purchase and sale of leather sofas.
There was no beginning inventory.Purchased 100 units on
account at $1,000 per unit
Sold 75 units for cash at $2,000 per unit
Customers returned 3 defective units for cash refunds
Stewart returned the 3 defective units to its supplier for credit
on account(a)Assuming Stewart uses a periodic inventory
system, what journal entries would be needed to record the
preceding activity?(b)Assuming Stewart uses a periodic
inventory system, show the calculation of gross profit. You
may assume that Stewart conducted a physical count of ending
inventory and confirmed that 25 were still on hand.(c)Assuming
Stewart uses a perpetual inventory system, what journal entries
would be needed to record the preceding activity?(d)Assuming
Stewart uses a perpetual inventory system, show the calculation
of gross profit. If Stewart uses a perpetual system, would there

be any need to perform a periodic physical count of leather
sofas on hand?
B-08.06
Worksheet(a)GENERAL
JOURNAL DateAccountsDebitCredit(b)(c)GENERAL
JOURNAL DateAccountsDebitCredit(d)
Pro,Bold"&20B-08.06
B-08.06
ProblemPatti Devine owns Devine Decorating. One of her most
popular items is the Remind-a-Chime digital clock. This
programmable clock issues "voice-based" reminders of
important events like birthdays, anniversaries, etc.Following is
the Remind-a-Clock inventory activity for January. The clocks
on hand at January 1 had a unit cost of
$140.DatePurchasesSalesUnits on Hand1-Jan405-Jan60 units @
$150 each10016-Jan70 units @ $255 each3023-Jan90 units @
$170 each12028-Jan55 units @ $295 each65(a)If Devine uses
the first-in, first-out (FIFO) inventory method (periodic
approach), what values would be assigned to ending inventory
and cost of goods sold? How much is gross profit?(b)If Devine
uses the last-in, first-out (LIFO) inventory method (periodic
and cost of goods sold? How much is gross profit?(c)If Devine
uses the weighted-average inventory method (periodic
and cost of goods sold? How much is gross profit?
B-08.04
Worksheet(a)FIFOBeginning inventory$ -Plus: Purchases-
Cost of goods available for sale$ -Less: Ending inventory-
Cost of goods sold$ -Sales$ -Cost of goods sold-Gross

profit$ -(b)LIFOBeginning inventory$ -Plus: Purchases-Cost
of goods available for sale$ -Less: Ending inventory-Cost of
goods sold$ -Sales$ -Cost of goods sold-Gross profit$ -
(c)Weighted-averageBeginning inventory$ -Plus: Purchases-
Cost of goods available for sale$ -Less: Ending inventory-
Cost of goods sold$ -Sales$ -Cost of goods sold-Gross
profit$ -
Pro,Bold"&20B-08.04
B-08.04
ProblemWangming Lu Energy Company builds specially
designed blades for generators used in wind energy farming
operations. The company started the year with the following
accounts receivable position:Accounts receivable$
10,500,000Less: Allowance for uncollectibles(320,500)$
10,179,500During the year, a customer, Windy Point Power
Company, was devastated by an unusually severe storm. At that
time, Wangming concluded that it was highly unlikely that
Windy Point would ever be able to pay its outstanding balance
of $150,000. This account was written off against the
allowance account. Much later in the year, Windy Point was
rescued by a group of investors who offered to pay $90,000
toward the unpaid balance, provided Wangming would
permanently forgive the other $60,000 and resume selling
product to Windy Point. Wangming agreed, and has since
resumed doing business with Windy Point.During the year, sales
on account amounted to $25,689,000. Collections on account
totaled $21,300,500 (excluding the Windy Point
collection).During the year, accounts written-off (not including
the Windy Point transaction) were $123,000. At year's end, a
detailed analysis of accounts receivable was performed, and it
was concluded that the allowance account should contain a
balance of $475,000.(a)Prepare summary journal entries:To

record the write-off of the Windy Point receivableTo restore the
portion of the Windy Point receivable that was collectedTo
record the collection of the Windy Point receivableTo record
sales on accountTo record collections on accountTo record the
write-off of accountsTo establish the correct balance in the
allowance for uncollectibles(b)Prepare a table including column
headings for Accounts Receivable, Allowance for
Uncollectibles, Net Realizable Value, and Uncollectible
Accounts Expense. Show how each entry from part (a) impacts
these components. The first one is done as an example on the
preprinted worksheet.
&R&"Myriad Web Pro,Bold"&20I-07.03
I-07.03
Worksheet(a)(a)GENERAL
JOURNALDateAccountsDebitCreditTo record the write-off of
the Windy Point receivableTo restore the portion of the Windy
Point receivable that was collectedTo record the collection of
the Windy Point receivableTo record sales on accountTo record
collections on accountTo record the write-off of accountsTo
establish the correct balance in the allowance
Pro,Bold"&20I-07.03(a)
I-07.03(a)
Worksheet(b)(b)ACCOUNTS RECEIVABLEALLOWANCE
FOR UNCOLLECTIBLESNET REALIZABLE
VALUEUNCOLLECTIBLE ACCOUNTS EXPENSETo record
the write-off of the Windy Point receivable$ (150,000)$
(150,000)$ -$ -To restore the portion of the Windy Point
receivable that was collectedTo record the collection of the
Windy Point receivableTo record sales on accountTo record
collections on accountTo record the write-off of accountsTo
establish the correct balance in the allowance for uncollectibles

Pro,Bold"&20I-07.03(b)
I-07.03(b)
ProblemWiggins Corporation utilizes an accounting software
package that is capable of producing a detailed aging of
outstanding accounts receivable. Following is the aging
schedule as of December 31, 20X2.AGEAMOUNT
OUTSTANDING0 to 30 days$ 1,200,00031 to 60
days700,00061 to 120 days200,000Over 120 days25,000Casper
Wiggins has owned and operated Wiggins Corporation for many
years and has a very good sense of the probability of collection
of outstanding receivables, based on an aging analysis. The
following table reveals the likelihood of
collection:AGEPROBABILITY OF COLLECTION0 to 30
days98%31 to 60 days90%61 to 120 days75%Over 120
days50%(a)Prepare an aging analysis and show how accounts
receivable and the related allowance for uncollectibles should
appear on the balance sheet at December 31.(b)Prepare the
necessary journal entry to update the allowance for
uncollectibles, assuming the balance prior to preparing the
aging was a $15,000 credit.(c)Prepare the necessary journal
entry to update the allowance for uncollectibles, assuming the
balance prior to preparing the aging was a $5,000 debit. How
could the allowance account have contained a debit balance?
B-07.05
Worksheet(a)(a)AGEBALANCEESTIMATED %
UNCOLLECTIBLEESTIMATED AMOUNT
UNCOLLECTIBLE0 to 30 days31 to 60 days61 to 120 daysOver
120 daysAccounts ReceivableLess: Allowance for
Uncollectible Accounts$ -
Pro,Bold"&20B-07.05(a)

B-07.05(a)
Worksheet(b)(b)GENERAL
JOURNAL DateAccountsDebitCreditDec. 31(c)GENERAL
JOURNAL DateAccountsDebitCreditDec. 31
Pro,Bold"&20B-07.05(b,c)
B-07.05(b,c)
ProblemBiscay Bay Boats established a petty cash fund for
minor day-to-day expenses. Following are activities related to
this fund. Prepare the necessary journal entries for petty
cash.(1)Established a $500 petty cash fund by writing a check to
"cash," cashing the check, and placing the proceeds in a petty
cash box entrusted to Herman Jones as custodian.(2)At the end
of the month, the petty cash fund contained remaining cash of
$127, and receipts for $65 postage, $123 office supplies, and
$180 gasoline for company vehicles. Herman is not sure why
the fund is short $5. A check payable to cash in the amount of
$373 was prepared, and the funds were placed into the
box.(3)At the end of the next month, the petty cash fund
contained remaining cash of $35, and receipts for $265 postage,
$160 office supplies, and $40 gasoline for company vehicles. A
check payable to cash in the amount of $715 was prepared, and
the funds were placed into the box. This amount reimburses the
fund and increases its balance to $750.
B-06.05
WorksheetGENERAL JOURNALDateAccountsDebitCredit#1To
establish a $500 petty cash fund#2To record expenses and
replenishment of petty cash#3To record expenses and
replenishment/increase to petty cash

Pro,Bold"&20B-06.05
B-06.05
ProblemDaniel Scott is an audit manager with the accounting
firm of Nelson & Riley, CPAs. As part of the routine audit
procedures for one of the firm's clients, Daniel instructed
Wanda Mullins, a newly hired staff auditor, to obtain a bank
statement directly from the client's bank and prepare an
independent reconciliation of the Cash account. Wanda did a
great job and presented Daniel with the following
reconciliation. Daniel has now forwarded this document
directly to you, with a request that you prepare proposed
adjusting entries that need to be recorded by the client.Ending
balance per bank statement$ 67,700.98Add: Deposits in
transit13,444.12Deduct: Outstanding checks#12221$
16,887.34#123278,550.50#12329132.74(25,570.58)Correct cash
balance$ 55,574.52Ending balance per company records$
52,148.55Add:Payment from customer via ETF*$
3,445.99Interest earnings566.884,012.87Deduct:Reject
customer credit card/charge back466.90Service
charges120.00(586.90)Correct cash balance$ 55,574.52*This
payment has yet to be recorded as revenue by the company.
B-06.04
WorksheetGENERAL JOURNALDateAccountsDebitCreditTo
record adjustments necessitated by bank reconciliation
Pro,Bold"&20B-06.04
B-06.04
ProblemDine-Corp International publishes ratings and reviews
of the world's finest restaurants. Following are facts you need
to prepare Dine-Corp's March bank reconciliation:Balance per
company records at end of month$ 72,644.12Bank service

charge for the month44.00NSF check returned with bank
statement1,440.66Note collected by the bank during the
month45,000.00Outstanding checks at month
end31,553.57Interest on note collected during the
month4,500.00Balance per bank at end of
month144,223.99Deposit in transit at month end7,989.04
B-06.03
WorksheetEnding balance per bank statement$
144,223.99Add:- 0Deduct:- 0Correct cash balance$ - 0Ending
balance per company records$ 72,644.12Add:$ - 0- 0-
0Deduct:- 0- 0- 0Correct cash balance$ - 0
Pro,Bold"&20B-06.03
B-06.03
ProblemHanna Sports is a retailer that specializes in athletic
equipment. The corporate strategy is to focus on towns with a
population of less than 25,000 people, thereby avoiding head-
to-head competition with large retail chains. Following is
Hanna's adjusted trial balance for the year 20X7. Hanna's
ending inventory is $525,525.HANNA SPORTS
CORPORATIONAdjusted Trial BalanceAs of December 31,
20X7DebitsCreditsCash$ 644,909$ -Accounts
receivable333,654-Inventory, Jan. 1433,477-Equipment488,765-
Accumulated depreciation-144,895Accounts payable-
111,888Loan payable-500,900Capital stock-250,000Retained
earnings, Jan. 1-322,433Dividends25,000-Sales-3,665,667Sales
discounts23,112-Sales returns and allowances144,367-
Purchases2,198,560-Purchase discounts-114,432Purchase
returns and allowances-26,341Freight-in73,091-Selling
expenses185,312-Rent expense262,000-Interest expense60,400-
Salaries expense200,700-Depreciation expense63,209-$
5,136,556$ 5,136,556(a)Prepare a comprehensive income

statement.(b)Prepare closing entries.
I-05.03
Worksheet(a)HANNA SPORTS CORPORATIONIncome
StatementFor the Year Ending December 31,
20X7RevenuesCost of goods soldGross profitExpensesNet
income
Pro,Bold"&20I-05.03(a)
I-05.03(a)
Worksheet(b)GENERAL JOURNAL
PageDateAccountsDebitCreditDec. 31To close income statement
accounts with a credit balance, and establish ending inventory
balanceDec. 31To close income statement accounts with a debit
balance, and remove the beginning inventory balanceDec. 31To
close Income Summary to Retained EarningsDec. 31To close
Dividends to Retained Earnings
Pro,Bold"&20I-05.03(b)
I-05.03(b)
ProblemTic Toc Clock Shop reported the following
merchandising-related transactions during June. Tic Tock
Clock Shop records all purchases "gross" and credit terms are
precisely followed on both purchases and sales.
Prepare journal entries to record each transaction.3-
JunPurchased $4,000 of clocks on account from Swiss Time,
F.O.B. destination, terms 1/10, n/30.5-JunSold a $1,500 clock to
Janci Holgren on account, terms 2/10, n/eom. The customer
picked up the clock from the shop.9-JunPaid the amount due for
the purchase of June 3.11-JunPurchased $8,000 of clocks on

account from Melbourne Clockworks, F.O.B. shipping point,
terms 2/10, n/30. Freight charges of $460 were prepaid by
Melbourne and added to the invoice. No discount is permitted
on the freight charges.19-JunSold a $3,500 clock on account,
terms 2/10, n/eom. Tic Toc sold the clock F.O.B. destination,
and paid the freight charges of $330.23-JunThe customer of
June 19 called to report that the clock was received damaged.
An agreement was reached to reduce the invoice by 20%.27-
JunPaid Melbourne Clockworks for the purchase of June 11.27-
JunJanci Holgren paid for the purchase of June 5.28-JunThe
customer of June 19 paid the balance due.
I-05.01
WorksheetGENERAL
JOURNALPageDateAccountsDebitCredit3-JunPurchased clocks
on account, terms 1/10,n/305-JunSold clock on account, terms
2/10, n/eom9-JunPaid for the puchase of June 3, taking the 1%
discount11-JunPurchased clocks on account, 2/10,n/30, F.O.B.
shipping point19-JunSold clock on account, 2/10, n/eom, F.O.B.
destination23-JunReduced balance due from customer on
account of damageGENERAL
JOURNALPageDateAccountsDebitCredit27-JunPaid the full
amount due for the purchase of June 1127-JunCollected the
amount due for the sale on June 528-JunCollected remaining
amount for June 19 sale, less 2% discount
Pro,Bold"&20I-05.01
B-05.01(a)
ProblemInteriors With Oohs and Aahs sells custom home décor.
Following is the corporation's income statement. Use this
statement to prepare closing entries. No dividends were
declared during the period.INTERIORS WITH OOHS AND
AAHSIncome StatementFor the Year Ending December 31,

20X4RevenuesSales$ 887,654Less:Sales discounts$
4,667Sales returns and allowances9,88014,547Net sales$
873,107Cost of goods soldBeginning inventory, Jan. 1$
182,343Add:Purchases$ 593,356Freight-in21,090$
614,446Less:Purchase discounts$ 3,501Purchase returns &
allowances19,00922,510Net purchases591,936Goods available
for sale$ 774,279Less: Ending inventory, Dec. 31199,055Cost
of goods sold575,224Gross profit$ 297,883ExpensesSalaries$
188,000Insurance9,152Utilities7,760Freight-
out2,434Depreciation13,773221,119Net income$ 76,764
B-05.08
WorksheetGENERAL JOURNAL
PageDateAccountsDebitCreditDec. 31Dec. 31Dec. 31
Pro,Bold"&20B-05.08
B-05.08

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