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Name: 1. (20 points) On a typical day, ABC company writes checks totaling $4,000. These checks clear in 10 days. Simultaneously, the company receives $1.700 for its Accounts Receivable, and the cash is available in 2 days on average. a. Calculate the disbursement, the collection and the net floats. b. Interpret the result. (15 points) Classify each transaction in the first three columns by its correct cash flow activity. Put"+" if activities increase cash flow, otherwise 2. Types of activity Operating Investing Financing ExI) Issued common stock for cash Ex2) Paid on Account Payable a. Declared a cash dividend b. Issued a bond payable c. Purchase land on credit d. Sold a machine at book value e. Increase in Accounts Receivable 3. (30 points) inston Corporation has the following selected assets and labilities. Corporation Cash Accounts Receivable Inventory Land Building Goodwill Accounts Payable Salaries Payable Taxes Payable Mortgage Payable Common Stock Retained Earnings $15,000 $20,000 $37,000 $70,000 $190,000 $26,000 $13,000 $7,000 $19,000 $80,000 $100,000 $82,000 Determine the company's net working capital, current ratio and quick ratio. (20 points) Demand deposits maintained by a firm to compensate a bank for services provided, credit lines, or loans. A $100,000 loan at 5% stated interest rate for 1 year with a required $150,000 compensating balance. Calculate the simple interest amount, and Discount interest rate. 4. (20 points) The Krafts invest $3,000 at 5% compounded annually. Determine after how many years their investment will be worth a minimum of $10,000. 5. 6. (50 points) Jan's Dance Studio, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The studio's year-end adjusted irial balance dated 12/31/2015, appears below (Bear in mind, the balance shown for Retained Earnings was last updated on 12/31/2014) Prepare an income statement, statement of retained carnings and Balance Sheet with the proper heading, dated December 31, 2015 Cash. . . . $171,100 9,400 3,000 7,200 500 . 18,000 Prepaid studio rent. Supplies .. Equipment.. Accumulated depreciation: equipment S 7,200 Notes payable 10,000 3,200 4,000 6,000 8,800 Income taxes payable . . . 100,000 40,000 6,000 165,000 3,900 1,900 500 1,800 900 23,000 Insurance expense.... Interest expense... $344,200 $344,200 ve guy ons wers

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