Management Accounting Sample Questions for in class Quiz-1 1.The year 2022 has been a great one for Excel Nightclub, which managed to earn $50,000 in net income. Therefore, the board decided to declare and pay dividends by year end. The balance of Retained Earning was $110,000 in 2021 and $120,000 in 2022. How much dividends were paid in 2022? 110,000 + 50,000 – Div = 120,000 therefore, Div = $40,000 2.business had net increase of $40,000 in its cash account in 2022. If net cash provided by operating activities was $60,000 and net cash provided by financing activities was $30,000, how much cash was used for investing activities? 60,000+30,000+IA = 40,000 Therefore, IA = - $50,000 3.The following information pertains to Bush Brew Pub for the fiscal year 2022. cash provided (used) by investing activities. Purchase of equipment: $30,000 Sale of long-term investments: 12,000 Increase in accounts payable: 6,000 Repayment of loan payable: 15,000 Depreciation of equipment: 7,000 Decrease in A/R: $20,000 Net Income: $30,000 Payment of dividends: $10,000 a. How much was net cash flow in operating activities? 30,000 + 7,000 +6,000 +20,000=$63,000 b. How much was net cash flows in Investing activities? -30,000 +12,000 = – $18,000 c. How much was net cash flows in Financing activities? -15,000 -10,000 =-$25,000 d. How much was the net cash flows in 2022? 63,000 -18,000 – 25,000 = +$20,000 4.The following is part of the balance sheet for a business in 2022: Equipment: $50,000 Less: ACC-DEP: (10,000) Land: $30,000 a. How mush is the cost of equipment? $50,000 b. How much is the book value of equipment? $40,000 c. How much is the cost of the land? $30,000 d. How much is the book value of the land? $30,000 e. If they sell the equipment for $45,000, will they gain or loss? How much? Gain for $5,000 5. The following is part of a comparative balance sheet for a business: 2021 2022 Equipment $120,000 $100,000 ACC-DEP $20,000 $22,000.00 During the year 2022, equipment depreciated for $5,000. If there was a $2,000 loss on the sale of equipment, how much have they sold the equipment? Cost of equipment sold: $ 120,000-100,000=$20,000 ACC-DEP of equipment sold: 20,000+5,000 – 22,000 = $3,000 Book Value of equipment sold = 20,000 -3,000 = $17,000 Equipment was sold for 17,000 – 2,000 = $15,000 6. A hotel has 250 rooms available for sale. Last year the hotel sold 73,000 rooms, and had $8,760,000 rooms revenue. a. What was the hotel’s occupancy percentage last year? b. What was the hotel’s ADR last year? c. What was the hotel’s RevPAR last year? a. (73,000)/(250*365)= 80% b. (8,760,000)/(250*0.80*365)=$120 c. (8,760,000)/(250*365)= $96 7. Last night a hotel achieved an ADR of $240 and total rooms revenue of $48,000. The hotel has 250 rooms available for sale. What was the hotel’s occupancy percentage last night? 48,000/240=200 rooms sold 200/250=80% 8. Last night a hotel achieved an ADR of $150 and total rooms revenue of $21,000. The hotel has 250 rooms available for sale, but 20 were out-of-order last night. What was the hotel’s RevPAR last night? (21,000)/(250-20)=$91.30 9. Last year a 400-room hotel had rooms department costs of $2,277,600, and achieved a 78% occupancy. What was the hotel’s CPOR for rooms department costs? 2,277,600/(400*0.78*365)= $20 10. n January, a restaurant had a beginning food inventory of $80,000, made purchases of $240,000 and had an ending inventory of $50,000. Employee meal costs for the month were $10,000. Food revenue for the month of February was $800,000. What was the restaurant’s cost of food sold and food cost percentage for the month of January? Cost of Food Sold = 80,000+240,000-50,000-10,000=$260,000 260,000/800,000=32.5% 11. In March, a restaurant achieved food sales of $800,000 and beverage sales of $200,000. The restaurant achieved a 30% food cost and a 15% beverage cost. What was the restaurant’s overall gross profit ratio? Cost of food: 0.30 * 800,000=$240,000 GM of food: 800,000-240,000=$560,000 Cost of Beverage: 0.15*200,000=$30,000 GM of Beverage=200,000-30,000=$170,000 There are other ways to answer this question. Total Sales: 800,000+200,000=$1,000,000 Total GM = 560,000+170,000=$730,000 GM %= 730,000/1,000,000=73% 12. This January, a restaurant achieved a food cost percentage of 30%. Last January the restaurant achieved a food cost percentage of 25%. What was the percentage change in the restaurant’s food cost percentage this year when compared to last year? (30-25)/25=20% increase 13. A restaurant has 50 seats and opens for dinner 5 days a week, 5 hours per evening. The restaurant’s annual revenue is $650,000, and its seat turnover is 3. How much is its average check? (650,000)/(50*3*5*52)=$16.67 14. A hotel is open 365 days per year. It has 125 rooms available for sale. Last year the hotel sold 34,450 rooms. What was the hotel’s occupancy percentage last year? (34,450) / (125 * 365) =75.51% 15. Last night a hotel achieved an ADR of $220.00 and total rooms revenue of $66,000. The hotel has 400 rooms available for sale. What was the hotel’s occupancy percentage last night? (66,000) / (220) = 300 rooms sold 300 / 400 = 75% 16. Last night a hotel achieved an ADR of $120.00 and total rooms revenue of $18,000. The hotel has 400 rooms available for sale, but 25 were out-of-order last night. What was the OCC%? What was the hotel’s RevPAR last night? 18,000 / 120 = 150 rooms sold RevPAR= 18,000/(375)=$48 OCC%= (150) / (400-25) = 40% 17. Last year a 500-room hotel was open for 365 days, had rooms department costs of $2,409,000, and achieved a 75% occupancy. What was the hotel’s CPOR for rooms department costs? # of rooms sold in a year= 75% * 500 * 365=136,875 CPOR = (2,409,000) / (136,875) = $17.60 18. In February, a restaurant had a beginning inventory of $85,000, made purchases of $235,000 and had an ending inventory of $70,000. Employee meal costs for the month were $12,000. Food revenue for the month of February was $800,000. What was the restaurant’s food cost percentage for the month of February? Cost of Food Sold = 85,000 + 235,000 – 70,000 – 12,000 = $238,000 238,000 / 800,000 =29.75% 19. This January, a restaurant achieved a food cost percentage of 28%. Last January the restaurant achieved a food cost percentage of 26%. What was the percentage change in the restaurant’s food cost percentage this year when compared to last year? (new – Old) / (Old) = (0.28 – 0.26) / (0.26) =7.69% 20. A restaurant has 80 seats and opens for dinner 6 days a week, 5 hours per evening. If the restaurant’s annual revenue is $870,000, and the seat turnover of this restaurant is 2.5, how much is its average check? (870,000) / (80 * 2.5* 6 * 52) = $13.94