GRADED PROJECTDirections: Be sure to make an electronic copy of your answer before submittingit to Ashworth College for grading. Unless otherwise stated, answer in completesentences, and be sure to use correct English spelling and grammar. Sourcesmust be cited in APA format. Your response should be a minimum of one(1) single-spaced page to a maximum of two (2) pages in length; refer to theAssignment Format page for specific format requirements.Assignment Details: This assignment will include the four-part graded projectdescribed below and 20 multiple choice exam questions covering this lesson,Manufacturing Accounting. The combined project and exam portions of thisAssignment total 100 points.You should complete your work for this project at this time and submit it with theexam questions (available at the Assignments tool).Part A (2 points each for a possible total of 6 points)The following information is given for Tripp Company, which uses the indirect method.Net income $20,000Depreciation expense 3,000Increase in accounts receivable 2,000Payment of dividends 2,000Proceeds from sale of equipment 6,000Increase in accounts payable 4,000Decrease in inventory 3,000From the information provided, answer the following questions:1. The cash flow from operating activities is ________.2. The cash flow from investing activities is ________.3. The cash flow from financing activities is ________.PRINCIPLES OF ACCOUNTING 2 135Part B (2 points each for a possible total of 10 points)Selected data for Sticks Design are given as of December 31, Year 1 and Year 2 (rounded to the nearest hundredth). Year 2 Year 1Net Credit Sales $25,000 $30,000Cost of Goods Sold 16,000 18,000Net Income 2,000 2,800Cash 5,000 900Accounts Receivable 3,000 2,000Inventory 2,000 3,600Current Liabilities 6,000 5,000Compute the following:1. Current ratio for Year 22. Acid-test ratio for Year 23. Accounts receivable turnover for Year 24. Average collection period for Year 25. Inventory turnover for Year 2Part C (10 points)Prepare an income statement showing departmental contribution margin based on the following: Dept. X Dept. Y Rent ExpenseSpace (square feet) 17,500 35,000Net Sales $60,000 $40,000Cost of Goods Sold 18,000 16,000Rent Expense (allocated based on square feet) $2,700136 PRINCIPLES OF ACCOUNTING 2Part D (4 points each for a possible total of 24 points)From the following transactions, prepare the appropriate general journal entries for the month of April.1. Raw materials costing $60,000 were issued from the storeroom.2. Direct labor of $53,000 was charged to production.3. Indirect labor costs of $17,000 were incurred.4. Overhead was applied at the rate of 40% of direct labor dollars.5. Completed products costing $42,000 were transferred to finished goods.6. Products costing $32,000 were sold.PROJECT UPLOADOnce youve completed this assignment, login to the student portal at https://students.ashworthcollege.edu. To log in, youll need the username andpassword that you received via email. From the Student Portal page, enter yourusername and password (Figure 1). Then click Login.Figure 1PRINCIPLES OF ACCOUNTING 2 137