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The following calendar year-end data is taken from the December 31, 2011, adjusted trial balance and other records of Firethorn Furniture.

Advertising expense $22,250
Depreciation expense — Office equipment 10,440
Depreciation expense — Selling equipment 12,125
Depreciation expense — Factory equipment 37,400
Factory supervision 123,500
Factory supplies used 8,060
Factory utilities 39,500
Raw materials, December 31, 2010 42,375
Raw materials, December 31, 2011 72,430
Goods in process, December 31, 2010 14,500
Goods in process, December 31, 2011 16,100
Finished goods, December 31, 2010 179,200
Finished goods, December 31, 2011 143,750
Direct labor $ 564,500
Income taxes expense 138,700
Indirect labor 61,000
Miscellaneous production costs 10,440
Office salaries expense 72,875
Raw materials purchases 896,375
Rent expense — Office space 25,625
Rent expense — Selling space 29,000
Rent expense — Factory building 95,500
Maintenance expense — Factory equipment 32,375
Sales 5,002,000
Sales discounts 59,375
Sales salaries expense 297,300

1. Prepare the company’s 2011 manufacturing statement.
2. Prepare the company’s 2011 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.

Analysis Component
3. Calculate the (a) inventory turnover, defined as cost of goods sold divided by average inventory, and (b) days’ sales in inventory, defined as 365 times ending inventory divided by cost of goods sold, for both its raw materials inventory and its finished goods inventory. (To compute turnover and days’ sales in inventory for raw materials, use raw materials used rather than cost of goods sold.) Discuss some possible reasons for differences between these ratios for the two types of inventories. Round answers to one decimal place.


An expectant father paces back and forth, producing the position-versus-time graph shown in Figure 2--25. Without performing a calculation, indicate whether the father's velocity is positive, negative, or zero on each of the following segments of the graph: A.


Step 1
1 of 2

To calculate the magnitude of the velocity we have to calculate the graph of the line at point A. To calculate the slope we have the endpoints of the line as (0,0) and (1,2) from the graph shown. Now we get the average velocity

V avg= Total distance Total time= slope=2010=2 m/s\begin{align*} V_{\text{ avg}}&=\dfrac{\text{ Total distance}}{\text{ Total time}}=\text{ slope}\\ &=\dfrac{2-0}{1-0}\tag{\textcolor{#4257b2}{the slope between points $(x_1,y_1)$ and $(x_2,y_2)$ would be $\dfrac{y_2-y_1}{x_2-x_1}$}}\\ &=2 \text{ m/s} \end{align*}

Hence, the velocity at point A will be 2 m/s.

Now the answer from the part (a) says that velocity should be positive and the calculated we have is positive. So, it is cross-verified.

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