Seth Erkenbeck, a recent college graduate, has just completed the basic format to be used in preparing the statement of cash flows (indirect method) for ATM Software Developers. All amounts are in thousands (000s).

Portions of the financial statements for Peach Computer are provided below.

$$\text{PEACH COMPUTER}\\ \text{Income Statement}\\ \text{For the year ended December 31, 2018}\\ \begin{matrix} \text{Net sales} & \text{ } & \text{$\$ 2,050,000$}\\ \text{Expenses:} & \text{ } & \text{ }\\ \text{Cost of goods sold} & \text{$\$ 1,150,000$} & \text{ }\\ \text{Operating expenses} & \text{$660,000$} & \text{ }\\ \text{Depreciation expense} & \text{$60,000$} & \text{ }\\ \text{Income tax expense} & \underline{50,000} & \text{ }\\ \text{Total expenses} & \text{ } & \underline{1,920,000}\\ \text{Net income} & \text{ } & \underline{\underline{\$ 130,000}}\\ \end{matrix}$$

$$\text{PEACH COMPUTER}\\ \text{Selected Balance Sheet Data}\\ \text{December 31}\\ \begin{matrix} \text{ } & \text{2018} & \text{2017} & \text{Increase (I) or Decrease (D)}\\ \hline \text{Cash} & \text{$\$ 112,000$} & \text{$\$ 90,000$} & \text{$\$ 22,000\ (I)$}\\ \text{Accounts receivable} & \text{$46,000$} & \text{$54,000$} & \text{$8,000\ (D)$}\\ \text{Inventory} & \text{$85,000$} & \text{$60,000$} & \text{$25,000\ (I)$}\\ \text{Prepaid rent} & \text{$4,000$} & \text{$7,000$} & \text{$3,000\ (D)$}\\ \text{Accounts payable} & \text{$55,000$} & \text{$42,000$} & \text{$13,000\ (I)$}\\ \text{Income tax payable} & \text{$6,000$} & \text{$15,000$} & \text{$9,000\ (D)$}\\ \end{matrix}$$

Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method.

On January 1, 2018, the general ledger of Grand Finale Fireworks includes the following account balances:

$$\begin{matrix} \text{Accounts} & \text{Debit} & \text{Credit}\\ \hline \text{Cash} & \text{$\$ 42,700$} & \text{ }\\ \text{Accounts Receivable} & \text{$44,500$} & \text{ }\\ \text{Supplies} & \text{$7,500$} & \text{ }\\ \text{Equipment} & \text{$64,000$} & \text{ }\\ \text{Accumulated Depreciation} & \text{ } & \text{$\$ 9,000$}\\ \text{Accounts Payable} & \text{ } & \text{$14,600$}\\ \text{Common Stock, $\$ 1$ par value} & \text{ } & \text{$10,000$}\\ \text{Additional Paid-in Capital} & \text{ } & \text{$80,000$}\\ \text{Retained Earnings} & \text{\_\_\_\_\_} & \underline{45,100}\\ \text{Totals} & \underline{\underline{\$ 158,700}} & \underline{\underline{\$ 158,700}}\\ \end{matrix}$$

During January 2018, the following transactions occur:

$$\begin{matrix} \text{January 2} & \text{Issue an additional $2,000$ shares of $\$ 1$ par value common stock for $\$ 40,000$ .}\\ \text{January 9} & \text{Provide services to customers on account, $\$ 14,300$ .}\\ \text{January 10} & \text{Purchase additional supplies on account, $\$ 4,900$ .}\\ \text{January 12} & \text{Repurchase $1,000$ shares of treasury stock for $\$ 18$ per share.}\\ \text{January 15} & \text{Pay cash on accounts payable, $\$ 16,500$ .}\\ \text{January 21} & \text{Provide services to customers for cash, $\$ 49,100$ .}\\ \text{January 22} & \text{Receive cash on accounts receivable, $\$ 16,600 .$}\\ \text{January 29} & \text{Declare a cash dividend of $\$ 0.30$ per share to all shares outstanding on January 29. The dividend is payable on February 15.}\\ \text{January 30} & \text{Reissue 600 shares of treasury stock for $\$ 20$ per share.}\\ \text{January 31} & \text{Pay cash for salaries during January, $\$ 42,000$ .}\\ \end{matrix}$$

1. Record each of the transactions listed above. 2. Record adjusting entries on January 31. a. Unpaid utilities for the month of January are $6,200. b. Supplies at the end of January total$5,100. c. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a service life of three years and a residual value of $10,000. d. Accrued income taxes at the end of January are$2,000. 3. Prepare an adjusted trial balance as of January 31, 2018, after updating beginning balances (above) for transactions during January (Requirement 1) and adjusting entries at the end of January (Requirement 2). 4. Prepare a multiple-step income statement for the period ended January 31, 2018. 5. Prepare a classified balance sheet as of January 31, 2018. 6. Record closing entries. 7. Analyze the following for Grand Finale Fireworks: a. Calculate the return on equity for the month of January. If the average return on equity for the industry for January is 2.5%, is the company more or less profitable than other companies in the same industry? b. How many shares of common stock are outstanding as of January 31, 2018? c. Calculate earnings per share for the month of January.

Wolfpack Construction has the following account balances at the end of the year.

$$\begin{array}{lr} \text{Accounts} & \text{Balances}\\ \hline \text{Equipment} & \text{$\$ 26,000$}\\ \text{Accounts payable} & \text{$3,000$}\\ \text{Salaries expense} & \text{$33,000$}\\ \text{Common stock} & \text{$11,000$}\\ \text{Land} & \text{$18,000$}\\ \text{Notes payable} & \text{$20,000$}\\ \text{Service revenue} & \text{$39,000$}\\ \text{Cash} & \text{$6,000$}\\ \text{Retained earnings} & \text{?}\\ \end{array}$$

Required: Use only the appropriate accounts to prepare a balance sheet.

The return on investment (ROI) from education is typically the highest for: A-A high school graduate B-A college applicant C-Someone with a 2-year (Associate) degree D-Someone with a 4-year (Bachelor’s) degree

For each sentence below, cross out the incorrect verb and write the corrected form above it. Since she still is undecided, had your sister ever considered going out of state for college?

Lisa has a scholarship that pays for 75% of her tuition for all four years she attends college. What is the total amount the scholarship is worth if Lisa's classes cost $12,000 per year?

Suppose you wanted to develop or create favorable attitudes among college students toward volunteering for Habitat for Humanity. Would you focus first on the affective, cognitive, or behavioral component? Explain why.

Geoff and Max are college roommates. Geoff can clean their apartment in 2.5 hours and Max can clean their apartment in 3.25 hours. How long will it take Max and Geoff to clean their apartment together?

Tuition How much summer earnings must a college student deposit on August $31$ to have $\$ 3000$ for tuition and fees on December $31$ of the same year if the investment earns $6 \%$ simple interest?

a. How do the major political parties select their presidential candidates? b. What is the purpose of nominating conventions? c. Do you think the electoral college is a fair method of choosing the president? Why or why not?

An educational organization is planning to analyze the study habits of college freshmen. A professor at Harvard University volunteers to have his class take the survey. Can you list some disadvantages of surveying this way?

How much must you deposit today into the following accounts in order to have a $\$ 120,000$ college fund in $15$ years? Assume no additional deposits are made.

An $\mathrm{APR}$ of $3.5 \%$, compounded monthly

Determine whether an observational study or an experimental study was used.
A study using college students was conducted to see if the percentage of males who pay for a date was equal to the percentage of females who pay for a date.