Question 1

The total liabilities of a company from the balance sheet are found to be $30.78 M. If the equity is stated as $40.15 M, the asset of the company is $9.37.

Accepted Answer

A) True 
 B)False  False

Question 2

Given the data for two products being made at Putnam Manufacturing, determine:
A) Overhead expenses based on labor cost for each of the two products.
B) Manufacturing cost of each product.
 $$\begin{array} { | c | c | c | } 
\hline & \text { Stardard } & \text { Deluxe } \
\hline \text { \# of urits produced / year } & 500,000 & 40,000 \
\hline \text { Labor cost } / \text { unit } & \$ 100 & \$ 180 \
\hline \text { Material cost } / \text { urit } & \$ 250 & \$ 320 \
\hline
\end{array}$$

Accepted Answer

A) $108.68M

Question 3

Case Study 17
Given: The financial data below for Tech Engineering in 2016. 
 $$\begin{array} { | l | l | } 
\hline \text { Category } & \begin{array} { l } 
\text { Dollar } \
\text { Amount }
\end{array} \
\hline \text { Cash } & \$ 800,000 \
\hline \text { Accounts receivable } & 1,000,000 \
\hline \text { Inventories } & 600,000 \
\hline \text { Intangibles } & 100,000 \
\hline \text { Accounts payable } & 650,000 \
\hline \text { Accrued Expenses } & 180,000 \
\hline
\end{array}$$
-Compute the current ratio from the financial data provided.

Accepted Answer

A)  1.57 
B)  3.01 
C)  2.72 
D)  1.78 
A)  1.57 
B)  3.01 
C)  2.72 
D)  1.78 B

Question 4

Case Study 17
Given: The financial data below for Tech Engineering in 2016. 
 $$\begin{array} { | l | l | } 
\hline \text { Category } & \begin{array} { l } 
\text { Dollar } \
\text { Amount }
\end{array} \
\hline \text { Cash } & \$ 800,000 \
\hline \text { Accounts receivable } & 1,000,000 \
\hline \text { Inventories } & 600,000 \
\hline \text { Intangibles } & 100,000 \
\hline \text { Accounts payable } & 650,000 \
\hline \text { Accrued Expenses } & 180,000 \
\hline
\end{array}$$
-Determine the working capital for the company.

Accepted Answer

A)  $1,470,000 
B)  $1,570,000 
C)  $1,670,000 
D)  None of these 
A)  $1,470,000 
B)  $1,570,000 
C)  $1,670,000 
D)  None of these

Question 5

This is classified as current asset for accounting purposes.

Accepted Answer

A)  Equipment 
B)  Land 
C)  Buildings 
D)  Finished goods Inventories 
A)  Equipment 
B)  Land 
C)  Buildings 
D)  Finished goods Inventories

Question 6

The total overhead expenses for a company are $10 M. The total labor cost for the whole company is $18 M. If a particular product has a direct labor of $3.6 M then the overhead expenses for this product is $6.4 M if overhead is based on direct labor costs.

Accepted Answer

A) True 
 B)False

Question 7

An example of indirect costs in manufacturing engineered products is salaries of design engineers.

Accepted Answer

A) True 
 B)False

Question 8

Case Study 17
Given: The financial data below for Tech Engineering in 2016. 
 $$\begin{array} { | l | l | } 
\hline \text { Category } & \begin{array} { l } 
\text { Dollar } \
\text { Amount }
\end{array} \
\hline \text { Cash } & \$ 800,000 \
\hline \text { Accounts receivable } & 1,000,000 \
\hline \text { Inventories } & 600,000 \
\hline \text { Intangibles } & 100,000 \
\hline \text { Accounts payable } & 650,000 \
\hline \text { Accrued Expenses } & 180,000 \
\hline
\end{array}$$
-What is the acid-test ratio for the company in 2016?

Accepted Answer

A)  2.17 
B)  1.61 
C)  1.21 
D)  None of these 
A)  2.17 
B)  1.61 
C)  1.21 
D)  None of these

The total liabilities of a company from the balance sheet are found to be $30.78 M. If the equity is stated as $40.15 M, the asset of the company is $9.37.

Case Study 17 Given: The financial data below for Tech Engineering in 2016. Category Dollar Amount Cash \ 800,000 Accounts receivable 1,000,000 Inventories 600,000 Intangibles 100,000 Accounts payable 650,000 Accrued Expenses 180,000 -Compute the current ratio from the financial data provided.

Case Study 17 Given: The financial data below for Tech Engineering in 2016. Category Dollar Amount Cash \ 800,000 Accounts receivable 1,000,000 Inventories 600,000 Intangibles 100,000 Accounts payable 650,000 Accrued Expenses 180,000 -Determine the working capital for the company.

This is classified as current asset for accounting purposes.

The total overhead expenses for a company are $10 M. The total labor cost for the whole company is $18 M. If a particular product has a direct labor of $3.6 M then the overhead expenses for this product is $6.4 M if overhead is based on direct labor costs.

An example of indirect costs in manufacturing engineered products is salaries of design engineers.

Case Study 17 Given: The financial data below for Tech Engineering in 2016. Category Dollar Amount Cash \ 800,000 Accounts receivable 1,000,000 Inventories 600,000 Intangibles 100,000 Accounts payable 650,000 Accrued Expenses 180,000 -What is the acid-test ratio for the company in 2016?

Making Economic Decisions

Estimating Engineering Costs and Benefits

Interest and Equivalence

Equivalence for Repeated Cash Flows

Present Worth Analysis

Annual Cash Flow Analysis

Rate of Return Analysis

Choosing the Best Alternative

Other Analysis Techniques

Uncertainty in Future Events

Depreciation

Income Taxes for Corporations

Replacement Analysis

Inflation and Price Change

Selection of a Minimum Attractive Rate of Return

Economic Analysis in the Public Sector

Filters

Exam 17: Accounting and Engineering Economy

The total liabilities of a company from the balance sheet are found to be $30.78 M. If the equity is stated as $40.15 M, the asset of the company is $9.37.

Case Study 17 Given: The financial data below for Tech Engineering in 2016. Category Dollar Amount Cash \ 800,000 Accounts receivable 1,000,000 Inventories 600,000 Intangibles 100,000 Accounts payable 650,000 Accrued Expenses 180,000 -Compute the current ratio from the financial data provided.

Case Study 17 Given: The financial data below for Tech Engineering in 2016. Category Dollar Amount Cash \ 800,000 Accounts receivable 1,000,000 Inventories 600,000 Intangibles 100,000 Accounts payable 650,000 Accrued Expenses 180,000 -Determine the working capital for the company.

This is classified as current asset for accounting purposes.

The total overhead expenses for a company are $10 M. The total labor cost for the whole company is $18 M. If a particular product has a direct labor of $3.6 M then the overhead expenses for this product is $6.4 M if overhead is based on direct labor costs.

An example of indirect costs in manufacturing engineered products is salaries of design engineers.

Case Study 17 Given: The financial data below for Tech Engineering in 2016. Category Dollar Amount Cash \ 800,000 Accounts receivable 1,000,000 Inventories 600,000 Intangibles 100,000 Accounts payable 650,000 Accrued Expenses 180,000 -What is the acid-test ratio for the company in 2016?

Making Economic Decisions

Estimating Engineering Costs and Benefits

Interest and Equivalence

Equivalence for Repeated Cash Flows

Present Worth Analysis

Annual Cash Flow Analysis

Rate of Return Analysis

Choosing the Best Alternative

Other Analysis Techniques

Uncertainty in Future Events

Depreciation

Income Taxes for Corporations

Replacement Analysis

Inflation and Price Change

Selection of a Minimum Attractive Rate of Return

Economic Analysis in the Public Sector

Filters