Team _________________________
Member(s) absent _______________
In-Class Case #2A
Chapter 2
Use the following information to prepare a bank reconciliation.
Check register—June
Date
Check paid to
June 1
D.C. Manufacturing
June 8
G.B. Manufacturing
June 10
Allservice Photo
June 22
L.E. Publisher
June 25
B.T. Tools
June 28
R.C. Construction
June 30
L. Bros.
Check #
6141
6142
6143
6144
6145
6146
6147
Amount
$237.50
12.45
89.93
447.50
386.84
289.35
2,250.00
Additional information in the accounting records:
Beginning cash balance
$4,258.93
Add: 3 deposits made during June
7,676.17 (one deposit was made June 30)
Less: 7 checks written during June
3,713.57
Ending cash balance
$8,221.53
Bank Statement—June
Date
Activity
June 1
June 5
June 11
June 25
June 26
June 30
June 30
June 30
June 30
June 30
Check #6140
Check #6141
Check #6142
Check #6144
Deposit
Check #6145
Deposit
NSF check
Service charge
Interest earned
Increase
Decrease
$1,420.00
237.50
120.45
447.50
$1,507.06
386.84
1,458.55
525.00
5.50
8.61
Balance
$5,678.93
4,258.93
4,021.43
3,900.98
3,453.48
4,960.54
4,573.70
6,032.25
5,507.25
5,501.75
5,510.36
Additional information in the bank records:
1.
Check #6140 was a reconciling item in the May bank reconciliation.
2.
All checks and deposits are correctly recorded in the bank records.
1
Team _____________________________
Member(s) absent ___________________
In-Class Case #2B
Chapter 2
Use the information shown below adapted from Hewlett-Packard’s 2008 annual
report (in millions) to calculate the following ratios for 2008:
1.
2.
3.
4.
5.
6.
7.
Return on investment
Quick
Return on owners’ equity
Gross margin
Accounts receivable turnover and days in the collection cycle
Inventory turnover and days in the selling cycle
Accounts payable turnover and days in the payment cycle
Cash and cash equivalents
Short-term investments
Accounts receivable, net
Inventories
Other current (nonliquid) assets
Long-term assets
Total assets
2008
$ 10,153
93
19,242
7,879
14,361
61,603
$113,331
2007
$11,293
152
15,927
8,033
11,997
41,297
$88,699
Accounts payable
Other current liabilities
Long-term liabilities
$14,138
38,801
21,450
$11,787
27,473
10,913
Stockholders’ equity
$38,942
$38,526
Sales
Cost of revenue
Gross margin
Operating expenses
Earnings from operations
$118,364
89,592
$ 28,772
18,299
$ 10,473
2