prepare responses to Group A problems PA 2-1 GROUP A PROBLEMS

prepare responses to Group A problems PA 2-1 GROUP A PROBLEMS Available with McGraw-HillÂ’s Homework Manager PA2-1 Determining Financial Statement Effects of Various Transactions Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It has a small service department that repairs customersÂ’ trains for a fee. The company has been in business for five years. At the end of the most recent year, 2005, the accounting records reflected total assets of $500,000 and total liabilities of $200,000. During the current year, 2006, the following summarized events occurred: a. Issued additional shares of stock for $100,000 cash. b. Borrowed $120,000 cash from the bank and signed a 10-year note. c. Built an addition on the factory for $200,000 and paid cash to the contractor. d. Purchased equipment for the new addition for $30,000, paying $3,000 in cash and signing a note due in six months for the balance. e. Returned a $3,000 piece of equipment, from d, because it proved to be defective; received a reduction of the note payable. LO1-LO5 COACHÂ’S CORNER You wonÂ’t need different accounts to record the transactions described below, so have a quick look at the ones listed before you start to answer this question. f. Three different accounts are affected. g. Does PPC owe anything to its new president for the year ended December 31, 2006? h. What does PPC give up and take back? LO1, LO2, LO5 excel Phillips−Libby−Libby: Fundamentals of Financial Accounting 2. Reporting Investing and Financing Results on the Balance Sheet Text © The McGraw−Hill Companies, 2005 chapter 2 Reporting Investing and Financing Results on the Balance Sheet f. Purchased a delivery truck (equipment) for $10,000; paid $5,000 cash and signed a ninemonth note for the remainder. g. At the end of 2006, lent $2,000 cash to the company president, Jennifer Mallard, who signed a note due in one year. h. A stockholder sold $5,000 of his capital stock in Mallard Incorporated to his neighbor. Required: 1. Complete the spreadsheet that follows, using plus ( ) for increases and minus ( ) for decreases for each account. The first transaction is used as an example. Assets Liabilities StockholdersÂ’ Equity Notes Notes Contributed Retained Cash Receivable Equipment Building Payable Capital Earnings (a) 100,000 100,000 2. Did you include event h in the spreadsheet? Why or why not? 3. Based on beginning balances plus the completed spreadsheet, provide the following amounts (show computations): a. Total assets at the end of the year. b. Total liabilities at the end of the year. c. Total stockholdersÂ’ equity at the end of the year. 4. As of December 31, 2006, has the financing for MIÂ’s investment in assets primarily come from liabilities or stockholdersÂ’ equity?

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FIN/200 week seven assignment loan scenarios Q. 2 p. 246 Delilah’s Haircuts--ANSWER KEY

FIN/200 week seven assignment loan scenarios Q. 2 p. 246 Delilah’s Haircuts




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The manager in Lansing has been stealing from the company

The manager in Lansing has been stealing from the company. To cover the theft, he understates the amount of the outstanding checks on the monthly bank reconciliation. As a result, each monthly bank reconciliation appears to balance. However, the balance sheet reports more cash then OÂ’Conner actually has in the bank.


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The Jaffar Company produces lawn mowers and is considering to shift to activity-based costing.

The Jaffar Company produces lawn mowers and is considering to shift to activity-based costing. Its controller, Orville Flattengartner, is interested in using a recent order for 100 mowers sold to Davis Lawn and Garder to compare traditional costing with activity-based costing. The costs for this order consist of direct materials of $4,000, purchased parts of $10,000, 120 direct labor hours at an average direct labor pay rate of $20 per hour, and a manufacturing overhead rate of 150% of direct labor costs.

In addition, Orville has collected the following information:

Activity Activity Cost Rate Cost Driver Level
Parts production $5 per machine hour 200 machine hours
Assembly $10 per direct labor hour 120 direct labor hours
Packaging & shipping $15 per unit 100 units
Work cell setup $100 per setup 3 setups

Required:

1) (10 pts) Using the traditional costing approach, a) compute the total production costs and b) product unit cost for the order

2) (10 pts) Using activity-based costing, a)compute the total production costs and b) product unit cost for the order.

3) (5 pts) What is the difference between the product unit cost using the traditional method versus the activity-based costing method? Which method do you think is the better representation of "true costs"? Why?

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The Jaffar Company produces lawn mowers and is considering to shift to activity-based costing.

The Jaffar Company produces lawn mowers and is considering to shift to activity-based costing. Its controller, Orville Flattengartner, is interested in using a recent order for 100 mowers sold to Davis Lawn and Garder to compare traditional costing with activity-based costing. The costs for this order consist of direct materials of $4,000, purchased parts of $10,000, 120 direct labor hours at an average direct labor pay rate of $20 per hour, and a manufacturing overhead rate of 150% of direct labor costs.
In addition, Orville has collected the following information:

Activity Activity Cost Rate Cost Driver Level
Parts production $5 per machine hour 200 machine hours
Assembly $10 per direct labor hour 120 direct labor hours
Packaging & shipping $15 per unit 100 units
Work cell setup $100 per setup 3 setups

Required:
1) (10 pts) Using the traditional costing approach, a) compute the total production costs and b) product unit cost for the order
2) (10 pts) Using activity-based costing, a)compute the total production costs and b) product unit cost for the order.
3) (5 pts) What is the difference between the product unit cost using the traditional method versus the activity-based costing method? Which method do you think is the better representation of "true costs"? Why?

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The manager in Lansing has been stealing from the company

The manager in Lansing has been stealing from the company. To cover the theft, he understates the amount of the outstanding checks on the monthly bank reconciliation. As a result, each monthly bank reconciliation appears to balance. However, the balance sheet reports more cash then OÂ’Conner actually has in the bank.


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ACC 250 week 1 checkpoint and assignment

ACC 250 week 1 checkpoint and assignment
I need these two assignment
Checkpoint Choosing Accounting software
Assignment Accounting software memo




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FIN 324 Week 3 Practice Exercise 2-14 (Ch. 2) of Accounting Concepts and Applications, Exercises 2-25, 2-27

Resource: Accounting Concepts and Applications • Prepare answers to the following exercises: o Practice Exercise 2-14 (Ch. 2) of Accounting Concepts and Applications o Exercises 2-25, 2-27—Part 1—2-32, 2-29, and 2-33 (Ch. 2) of Accounting Concepts and Applications


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P20-4A--Haas Company prepares monthly cash budgets

P20-4A



Haas Company prepares monthly cash budgets. Relevant data from operating
January February
Sales $350,000 $400,000
Direct materials purchases 110,000 130,000
Direct labor 90,000 100,000
Manufacturing overhead 70,000 75,000
Selling and administrative expenses 79,000 86,000
Problems: Set A
1039

Prepare sales, production,
direct materials, direct labor,
and income statement
budgets.

Prepare sales and production
budgets and compute cost
per unit under two plans.
(SO 3, 4)
Prepare cash budget for
2 months.
(SO 5)
All sales are on account. Collections are expected to be 50% in the month of sale, 30%
in the first month following the sale, and 20% in the second month following the sale.
Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase,
and the balance due is paid in the month following the purchase. All other items
above are paid in the month incurred except for selling and administrative expenses that
include $1,000 of depreciation per month.
Other data:
1. Credit sales: November 2010, $260,000; December 2010, $320,000.
2. Purchases of direct materials: December 2010, $100,000.
3. Other receipts: January—Collection of December 31, 2010, notes receivable $15,000;
February—Proceeds from sale of securities $6,000.
4. Other disbursements: February—Withdrawal of $5,000 cash for personal use of
owner, Dewey Yaeger.
The company’s cash balance on January 1, 2011, is expected to be $60,000. The company
wants to maintain a minimum cash balance of $50,000.
Instructions
(a) Prepare schedules for (1) expected collections from customers and (2) expected payments
for direct materials purchases.
(b) Prepare a cash budget for January and February in columnar form.


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E3-4 The Cutting Department of Behan Manufacturing has the following production and cost data for July

The Cutting Department of Behan Manufacturing has the following production and cost data for July..
Thank you in advance
Production Costs
1. Transferred out 9,000 units. Beginning work in process $ –0–
2. Started 1,000 units that are 40% Materials 45,000
complete as to conversion Labor 14,940
costs and 100% complete as Manufacturing overhead 18,900
to materials at July 31.


Materials are entered at the beginning of the process. Conversion costs are incurred uniformly
during the process.
Instructions
(a) Determine the equivalent units of production for (1) materials and (2) conversion
costs.
(b) Compute unit costs and prepare a cost reconciliation schedule.

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P7-3A Presented below are the assumptions, principles, and constraints

P7-3A Presented below are the assumptions, principles, and constraints used in this chapter. 1. Economic entity assumption 2. Going concern assumption 3. Monetary unit assumption 4. Time period assumption 5. Full disclosure principle 6. Revenue recognition principle 7. Matching principle 8. Cost principle 9 Materiality 10. Conservatism Identify the accounting assumption, principle, or constraint that describes each situation below. Do not use more than once. (a) Assets are not stated at their liquidation value. (Do not use cost principle.) (b) The death of the president is not recorded in the accounts. (c) Pencil sharpeners are expensed when purchased. (d) Depreciation is recorded in the accounts over the life of an asset. (Do not use the going concern assumption.) (e) Each entity is kept as a unit distinct from its owner or owners. (f) Reporting must be done at defined intervals. (g) Revenue is recorded at the point of sale. (h) When in doubt, it is better to understate rather than overstate net income. (i) All important information related to inventories is presented in the footnotes or in the financial statements.

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FIN 324 Week 3 Practice Exercise 2-14 (Ch. 2) of Accounting Concepts and Applications, Exercises 2-25, 2-27

Resource: Accounting Concepts and Applications • Prepare answers to the following exercises: o Practice Exercise 2-14 (Ch. 2) of Accounting Concepts and Applications o Exercises 2-25, 2-27—Part 1—2-32, 2-29, and 2-33 (Ch. 2) of Accounting Concepts and Applications




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ACC 400 WEEK 3 BE 10-1, BYP10-1, BYP 11-10---ANSWER KEY

ACC 400 WEEK 3 BE 10-1, BYP10-1, BYP 11-10

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AC Speed Corporation Excel spreadsheets

This is for the completed December 31, 2008 year-end AC Speed Corporation Excel spreadsheets. This includes full details, including:
General Ledger, Chart of Accounts, and Trial Balance tab
Sales, Cash Payments, Cash Receipts, Purchases, and General Journal as well as the Materials Summary tab
General Ledger Balance Sheet Accounts tab
General Ledger Income Statement Accounts tab
Trial Balance tab
Financial Statements tab including Income Statement, Statement of Retained Earnings, and Balance Sheet
Budget Data Input Sheet for 2009


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Distinguished Scholar Project Unit 4

Consider the following scenario: John buys a house for $150,000 and takes out a five year adjustable rate mortgage with a beginning rate of 6%. He makes annual payments rather than monthly payments.






Unfortunately for John, interest rates go up by 1% for each of the five years of his loan (Year 1 is 6%, Year 2 is 7%, Year 3 is 8%, Year 4 is 9%, Year 5 is 10%).






Calculate the amount of John's payment over the life of his loan. Compare these findings if he would have taken out a fix rate loan for the same period at 7.5%. Which do you think is the better deal?

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Mini Case on page 329-330,Caledonia Products

The major written assignment for the course is a Final Project. The purpose of the Final Project is for you to culminate the learning achieved in the course by describing your understanding and application of knowledge in the field of finance through the analysis of a mini case. From the Mini Case on page 329-330, parts "a" to "d," summarize your analysis in a concise management statement not to exceed a total of 1,200 words. For parts "e" to "k," use formulas to calculate the ratios and format the cells to insert a comma if there is more than three numbers. Round to the nearest whole number. Clearly label your analysis and your conclusions in not more than 500 words.
Writing the Final Project
The Project:
• Must include a cover page that includes:
o Student’s name
o Course name and number
o Title of paper
o Instructor’s name
o Date submitted
• Must include an introductory paragraph with a succinct thesis statement.
• Must address the topic of the paper with critical thought.
• Must conclude with a restatement of the thesis and a conclusion paragraph.
• Must use APA style as outlined in the approved APA style guide to document all sources.
• Must include a Reference Page that is completed according to APA style as outlined in the approved APA style guide.
Problem 1-Case below
MINI CASE
It’s been 2 months since you took a position as an assistant financial analyst at Caledonia Products. Although your boss has been pleased with your work, he is still a bit hesitant about unleashing you without supervision. Your next assignment involves both the calculation of the cash flows associated with a new investment under consideration and the evaluation of several mutually exclusive projects. Given your lack of tenure at Caledonia, you have been asked not only to provide a recommendation but also to respond to a number of questions aimed at judging your understanding of the capital-budgeting process. The memorandum you received outlining your assignment follows:
To: The Assistant Financial Analyst
From: Mr. V. Morrison, CEO, Caledonia Products
Re: Cash Flow Analysis and Capital Rationing

We are considering the introduction of a new product. Currently we are in the 34 percent marginal tax bracket with a 15 percent required rate of return or cost of capital. This project is expected to last 5 years and then, because this is somewhat of a fad product, be terminated. The following information describes the new project:





________________________________________________________________
Cost of new plant and equipment $7,900,000
Shipping and installation costs $ 100,000
Unit sales
YEAR UNITS SOLD
1 70,000
2 120,000
3 140,000
4 80,000
5 60,000
Sales price per unit $300/unit in years 1 through 4, $260/unit in year 5
Variable cost per unit $180/unit
Annual fixed costs $200,000

Working-capital requirements There will be an initial working-capital requirement of
$100,000 just to get production started. For each year, the total investment in net working capital will be equal to 10% of the dollar value of sales for that year. Thus, the investment in working capital will increase during years 1 through 3, then decrease in year 4. Finally, all working capital is liquidated at the termination of the project at the end of year 5.
The depreciation method Use the simplified straight-line method over 5 years. Assume that the plant and equipment will have no salvage value after _________________________________5 years. ______________________________________

a) Should Caledonia focus on cash flows or accounting profits in making its capital-budgeting decisions? Should the company be interested in incremental cash flows, incremental profits, total free cash flows, or total profits?
b) How does depreciation affect free cash flows?
c) How do sunk costs affect the determination of cash flows?
d) What is the project’s initial outlay?
e) What are the differential cash flows over the project’s life?
f) What is the terminal cash flow?
g) Draw a cash flow diagram for this project.
h) What is the present value?
i) What is the internal rate of return?
j) Should the project be accepted? Why or why not?
k) In capital budgeting, risk can be measured from three perspectives. What are those three measures of a project’s risk?

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Survey of Accounting - Acc121 P1-1 Aloha Travel Service - Financial Statements--ANSWER KEY

P1-1 The amounts of the assets and liabilities of Aloha Travel Service at November 30, 2008, the end
of the current year, and its revenue and expenses for the year are listed below. Th e retained earnings
were $140,000, and the capital stock was $60,000 at December 1, 2007, the beginning of the
current year. Dividends of $120,000 were paid during the current year.

Accounts payable $ 48,800
Accounts receivable 125,400
Cash 212,200
Fees earned 1,052,800
Miscellaneous expense 11,800
Rent expense 151,200
Supplies 13,400
Supplies expense 28,400
Taxes expense 22,400
Utilities expense 90,000
Wages expense 526,800

Instructions
1. Prepare an income statement for the current year ended November 30, 2008.
2. Prepare a retained earnings statement for the current year ended November 30, 2008.
3. Prepare a balance sheet as of November 30, 2008.

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Survey of Accounting - Acc121 P1-2 La Jolla Realty

P1-2 The financial statements at the end of La Jolla Realty’s first month of operations are shown below.

LA JOLLA REALTY

Income Statement
For the Month Ended April 30, 2008
Fees earned $56,400
Operating expenses:
Wages expense $ (a)
Rent expense 5,760
Supplies expense 4,800
Utilities expense 3,240
Miscellaneous expense 1,980
Total operating expenses 28,680
Net income $ (b)

LA JOLLA REALTY
Retained Earnings Statement
For the Month Ended April 30, 2008
Net income for April $ (c)
Less dividends (d)
Retained earnings, April 30, 2008 $ (e)

LA JOLLA REALTY
Balance Sheet
April 30, 2008
Assets
Cash $35,400
Supplies 2,400
Land (f)
Total assets $ (g)
Liabilities
Accounts payable $ 2,880
Stockholders’ Equity
Capital stock $ (h)
Retained earnings (i) (j)
Total liabilities and stockholders’ equity $ (k)

LA JOLLA REALTY
Statement of Cash Flows
For the Month Ended April 30, 2008
Cash flows from operating activities:
Cash received from customers $ (l)
Deduct cash payments for expenses and payments to creditors 28,200
Net cash flows from operating activities $ (m)
Cash flows from investing activities:
Cash payments for acquisition of land 86,400
Cash flows from financing activities:
Cash received from issuing capital stock $108,000
Deduct dividends 14,400
Net cash flows from financing activities (n)
Net cash flow and April 30, 2008 cash balance $ (o)

Instructions
1. Would you classify a realty business like La Jolla Realty as a manufacturing, merchandising,
or service business?
2. By analyzing the interrelationships between the fi nancial statements, determine the proper
amounts for (a) through (o).

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ACC 250 week 1 checkpoint and assignment

ACC 250 week 1 checkpoint and assignment
I need these two assignment
Checkpoint Choosing Accounting software
Assignment Accounting software memo

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ACC 250 Week 1-Checkpoint - Choosing Accounting Software

ACC 250
Checkpoint: choosing accounting software
Write a 200-300 word response to the above article.
Identify the different types of accounting software.
Provide the names of the different software programs for each type of software.
Determine which companies might use each type of software.

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FIN 324 Week 2---ANSWER KEY

FIN324 • Resource: Accounting Concepts and Applications • Prepare answers to the following questions and exercises: o Discussion Questions 5 and 7 (Ch. 1) of Accounting Concepts and Applications o Practice Exercises 3-1, 3-2, 3-11, 3-12, 3-17—related to 3-11 and 3-12—and 3-19—related to 3-17 (Ch. 3) of Accounting Concepts and Applications o Exercise 3-34 (Ch. 3) of Accounting Concepts and Applications o Discussion Questions 7, 9, 15, and 16 (Ch. 4) of Accounting Concepts and Applications

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Survey of Accounting - P3-1 and P3-2 Emerald Healthcare Inc--ANSWER KEY

Survey of Accounting - P3-1 and P3-2 Emerald Healthcare Inc

address Problem P3-1 & P3-2

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Kyle, Inc. instituted a new process in October. During that month, 18,000 units

Kyle, Inc. instituted a new process in October. During that month, 18,000 units were started in Department A. Of those units, 2,000 were lost in the process, 12,000 were transfered to Department B, and 4,000 remained in work in process at October 31. The work in process at October 31 was 100% complete as to material cost and 15% complete as to conversion costs. Material costs of $78,400 and conversion costs of $52,920 were charged to Department A in October. Determine the total cost transferred to Department B. Label each answer clearly and show all your work.


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The Byrnew Corporation is a manufacturer of a chronograph wristwatch and uses the weighted-average method of process costing

The Byrnew Corporation is a manufacturer of a chronograph wristwatch and uses the weighted-average method of process costing. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 70 percent fo direct labor cost. There was no finished goods inventory at the beginning of the current year. The ending inventory is 40 percent complete as tolabor and overhead. A review of the inventory cost records shows the following information: Units Material Conversion Work in process, Jan 1 (80% complete as to labor and overhead) 100,000 $350,000 $510,000 Units started 500,000 $700,000 $1,428,000 Units completed 550,000 Prepare the following schedules as of December 31 of the current year. Label answears clearly and show work: a. Equivalent units of production using the weighted-average method b.Unit costs of production of materials, labor, and overhead c. Costof the finished goods inventory and work in process inventory


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One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000

One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?


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(Present value) What is the present value of the following future amounts?

(Present value) What is the present value of the following future amounts? $800 to be received 10 years from now discounted back to the present at 10 percent $300 to be received 5 years from now discounted back to the present at 5 percent $1,000 to be received 8 years from now discounted back to the present at 3 percent $1,000 to be received 8 years from now discounted back to the present at 20 percent (Compound annuity) What is the accumulated sum of each of the following streams of payments? $500 a year for 10 years compounded annually at 5 percent $100 a year for 5 years compounded annually at 10 percent $35 a year for 7 years compounded annually at 7 percent $25 a year for 3 years compounded annually at 2 percent (Present value of an annuity) What is the present value of the following annuities? $2,500 a year for 10 years discounted back to the present at 7 percent $70 a year for 3 years discounted back to the present at 3 percent $280 a year for 7 years discounted back to the present at 6 percent $500 a year for 10 years discounted back to the present at 10 percent

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Scully Corporation's comparative balance sheet are presented below 2010

Scully Corporation's comparative balance sheet are presented below 2010 2009 Cash $14,300 $10,700 Accounts receivable 21,200 23,400 Land 20,000 26,000 Building 70,000 70,000 Accumulated depreciation (15,000) (10,000) Total $110,500 $120,100 Accounts payable $12,370 $31,100 Common stock 75,000 69,000 Retained earnings 23,130 20,000 Total $110,500 $120,100 Additional information: 1) Net income was $22,630. Dividends declared and paid were $19,500. 2) All other changes in noncurrent account balances had a direct effect on cash flows, except the changes in accumulated depreciation. The land was sold for $4,900. Instructions: A) Prepare a statement of cash flows for 2010 using the indirect method. B) Compute free cash flow.

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Prepare a vertical analysis of the 2009 income statement data for Douglas Company and Maulder Company

Prepare a vertical analysis of the 2009 income statement data for Douglas Company and Maulder Company in columnar form.
(b) Comment on the relative profitability of the companies by computing the return on assets and the return on common stockholders' equity ratios for both companies.( I said you have the same book that i have it,s chapter 15)


Instructions
Compute the following ratios for 2009.
(a) Current.
(b) Acid-test.
(c) Receivables turnover.
(d) Inventory turnover.
(e) Profit margin.
(f) Asset turnover.
(g) Return on assets.
(h) Return on common stockholders' equity.
(i) Earnings per share.
(j) Price-earnings.
(k) Payout.
(l) Debt to total assets.
(m) Times interest earned.

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FIN 200 Capstone Checkpoint present value, future value, and annuity due complete problems 8,9, and 22

FIN 200 Capstone Checkpoint present value, future value, and annuity due complete problems 8,9, and 22


Capstone Checkpoint present value, future value, and annuity due
complete problems 8,9, and 22 on pg 279-280 of fin200 ch. 9

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Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for a price of $1034.74

Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for a price of $1034.74.
(a) What is the bond yield to maturity (expressed as an APR with semiannual compounding)?
(b) If the bond's yield to maturity changes to 9% APR, what will the bond's price be?



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AC SPEED CORPORATION

This is for the completed December 31, 2008 year-end AC Speed Corporation Excel spreadsheets. This includes full details, including:
General Ledger, Chart of Accounts, and Trial Balance tab
Sales, Cash Payments, Cash Receipts, Purchases, and General Journal as well as the Materials Summary tab
General Ledger Balance Sheet Accounts tab
General Ledger Income Statement Accounts tab
Trial Balance tab
Financial Statements tab including Income Statement, Statement of Retained Earnings, and Balance Sheet
Budget Data Input Sheet for 2009

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Managerial Accounting ch 14 quiz

13.
Which one of the following would most likely be considered a mixed cost?
A) Cost of using a copy machine
B) Direct labor
C) Supervisory salaries
D) Direct materials
14.
Which of the following costs are variable?
Cost 2,000 Units 2,500 Units
1 $100,000 $125,000
2 40,000 75,000
3 80,000 100,000
4 60,000 60,000


A) 1 and 2
B) 1, 2 and 3
C) 1 and 3
D) 1 and 4
15.
What is a relevant range of activity?
A) The geographical locations in which the company operates
B) The activity level at which profits are maximized
C) The levels of activity over which the company expects to operate
D) The level of activity in which all costs are constant
16.
Which one of the following statements is correct?
A) Most companies operate at 100% capacity.
B) Very few companies operate at 100% of capacity.
C) Companies operating at 100% are always more profitable than those who do not.
D) Companies that operate at more than 100% capacity experience larger contribution margins than companies operating at less than capacity.
17.
Which one of the following is an assumption of CVP analysis?
A) Sales in units remains constant.
B) All costs are variable.
C) The change in beginning and ending inventories is reflected in the analysis.
D) The behavior of costs and revenues are linear within the relevant range.
18.
Which of the following is an underlying assumption of CVP analysis?
A) Factors other than changes in activity may affect costs.
B) Cost classifications are reasonably accurate.
C) Increases in inventories cause increase in total fixed costs.
D) Unit costs remain the same over the relevant range.
19.
Which one of the following is correct concerning contribution margin?
A) It is calculated by subtracting product variable costs from sales.
B) It excludes selling costs from its calculation.
C) It is calculated by subtracting total manufacturing costs from sales revenue.
D) It equals sales revenue minus total variable costs.
20.
Which one of the following is not an acceptable way to express contribution margin?
A) Sales minus variable costs
B) Sales minus unit costs
C) Unit selling price minus unit variable costs
D) Contribution margin per unit divided by unit selling price

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P14-4A -- for the fiscal year ended June 30, 2010. The following data were taken from the records of Stellar Manufacturing Company

P14-4A


for the fiscal year ended June 30, 2010.


The following data were taken from the records of Stellar Manufacturing Company






Raw Materials Factory Insurance $ 4,600


Inventory 7/1/09 $ 48,000 Factory Machinery


Raw Materials Depreciation 16,000


Inventory 6/30/10 39,600 Factory Utilities 27,600


Finished Goods Office Utilities Expense 8,650


Inventory 7/1/09 96,000 Sales 554,000


Finished Goods Sales Discounts 4,200


Inventory 6/30/10 95,900 Plant Manager’s Salary 29,000


Work in Process Factory Property Taxes 9,600


Inventory 7/1/09 19,800 Factory Repairs 1,400


Work in Process Raw Materials Purchases 96,400


Inventory 6/30/10 18,600 Cash 32,000


Direct Labor 149,250


Indirect Labor 24,460


Accounts Receivable 27,000


Instructions


(a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were


direct materials.)


(b) Prepare an income statement through gross profit.


(c) Prepare the current assets section of the balance sheet at June 30, 2010.




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P14-2A October 2010. For the preceding 3 years Copa

P14-2A
October 2010. For the preceding 3 years Copa had been a retailer of stereo systems.
After a thorough survey of stereo system markets, Copa decided to turn its retail store
into a stereo equipment factory.
Raw materials cost for a stereo system will total $74 per unit. Workers on the production
lines are on average paid $12 per hour. A stereo system usually takes 5 hours to
complete. In addition, the rent on the equipment used to assemble stereo systems amounts
to $4,900 per month. Indirect materials cost $5 per system. A supervisor was hired to
oversee production; her monthly salary is $3,000.
Factory janitorial costs are $1,300 monthly. Advertising costs for the stereo system
will be $8,500 per month. The factory building depreciation expense is $7,200 per year.
Property taxes on the factory building will be $9,000 per year.
Copa Company, a manufacturer of stereo systems, started its production in
Instructions
(a) Prepare an answer sheet with the following column headings.
DL $78,000
MO $17,050
(a) DM $96,200
Product Costs
PC $ 8,500
Cost Direct Direct Manufacturing Period
Item Materials Labor Overhead Costs
Assuming that Copa manufactures, on average, 1,300 stereo systems per month, enter
each cost item on your answer sheet, placing the dollar amount per month under
the appropriate headings. Total the dollar amounts in each of the columns.
(b) Compute the cost to produce one stereo system.

Here's the SOLUTION

A retailer has 100.00 in cash, 300,000 in accounts recievable

BA320 Business Final Exam


7. A retailer has 100.00 in cash, 300,000 in accounts recievable, 500,000 in inventory, 200,000 in marketable securities, and 800,000 in total current liabilities. What is its current ratio?


18. A 60 percent markup at retail equals what markup at cost?


26. A retailer offers an option credit account to its customers, interest is charged at 15 percent per year. If a consumers buys $400 in merchandise on january 1 and receives the bill January 15, how much must the consumer remit to pay the account in full?


32. A firms ending retail book value of inventory is 30,000. A physical inventory (a retail) shows a balue of 24,250. If the retailers cost complement is .8, what is the ending inventory value at cost?

Here's the SOLUTION

8-B1 Summary Performance Reports

8-B1 Summary Performance Reports






Consider the following data for Tax Preparation Services, a firm much like H&R Block:






• Static budget data: sales, 2,500 clients at $350 each; variable costs, $250 per client; fixed


costs, $150,000.


• Actual results at actual prices: sales, 3,100 clients at $360 per client; variable costs, $800,000;


fixed costs, $159,500.






1. Prepare a summary performance report


2. Fill in the blanks:


Static-budget operating income $ —


Variances


Sales-activity variances $ —


Flexible-budget variances — —


Actual operating income $

Here's the SOLUTION

P2-2 (CPU COMPUTER SERVICES) AND P2-3 (CARAVAN SERVICES, INC.)

P2-2 (CPU COMPUTER SERVICES) AND P2-3 (CARAVAN SERVICES, INC.)

Here's the SOLUTION

Selby Hinkle is the sole stockholder and operator of Osaka, a motivational consulting business

Questions and Exercises 2

1. Provide an example of a transaction that affects (a) only one element of the accounting equation, (b) two elements of the accounting equation, (c) three elements of the accounting equation.

2. Ex 2-5

3. Ex 2-10

4. Ex 2-17

5. Ex 2-18

6. Ex 2-19

7. Ex 2-20

EX2
Selby Hinkle is the sole stockholder and operator of Osaka, a motivational consulting business. At the end of its accounting period, December 31, 2007, Osaka has assets of $800,000 and liabilities of $375,000. Using the accounting equation and sonsidering each case independently, determine the following.

A. Stockholder's equity, as of December 31,2007

b. Stockholder's equity as of December 31, 2008 assuming that assets increased by $125,000 and liabilities increased by $60,000 during 2008.

c. Stockholders equity, as of December 31, 2008 assuming the assets decreased by $100,00 and liabilities increased by $40,000 during 2008.

d. Stockholders equity, as of December 31, 20008, assuming that assets increased by $80,000 and liabilities decreased by $200,000 during 2008

e. Net income (or net loss) during 2008, assuming that as of December 30, 2008, assets were $910,000, liabilities ere $400,000 and there were no dividents and no additional caital stock as issued.

Ex10

Juniper delivery service had the following selected transactions during May:

1. Received cash from inssuance of capital stock, $50,000
2. Received cash for providing delivery services, $18,000
3. Paid advertising expense, $1,000
4. Billed customers for delivery services, $35,000
5. Pruchased supplies for cash, $2,100
6. Paid creditors, $2,000
7. Paid rent for May, $2,000
8 Received cash from customers on account, $16,700
9. determined that the cost of supplies on hand was $1,200;therefore $900 of supplies had been used during the month.
10. Paid dividends, $1500

Idicate the effect of each transation on the accounting equation by listing the numbers identifying the transactions , (1) through (10), in a vertical column, and inserting at the right of each number the appropriate letter from the following list;

a. Increase in an asset, decrease in another asset.
b. increase in an asset, increase in a liability.
c. increase in an asset, increase in stockholders equity
d. Decrease in an asset, decrease in a liability
e. Decrease in an asset, decrease in stockholders equity


EX17

After its first month of operation, the following amounts were taken from the accouting records of Sandcastle Realty Inc. As of June 30, 2009

Capital Stock $18,000
Cash $38,700
Dividends $7,200
Interest expense $3,600
Land $66,600
Miscellaneous expense $4,500
Notes Payable $54,000
Rent expense $10,800
retained earnings 0
Salaries expense $16,200
Sales commissions $89,100
Utilities expense $13,500

Prepare an income statement for the monthe ending June 30, 2009

Net income will end up being $40,500


EX18

Using the financial data shown in Exercise 2-17 for Sandcastle Realty Inc, prepare a retained earnings statement for the monthe ending June 30, 2009


EX 19

Using the financial data shown in Exercise 2-17 for Sandcastle Realty Inc. prepare a balance sheet as of June 30, 2009

Ex20

Using tge financial data shown in Exercise 2-17 for Sandcastle Realty Inc. prepare a statement of cash flows for the month ending June 30, 2009


Here's the SOLUTION

ACC 225 Assignment: Internal Control and Bank Reconciliations

Resource: Fundamental Accounting Principles, pp. 335 & 336
Complete Quick Study question 8-6 on p. 335 and Exercises 8-3 & 8-4 on p. 336.


Assignment: Internal Control and Bank Reconciliations

Resources: Fundamental Accounting Principles, pp. 338 & 339
Complete Problems 8-1A, & 8-4A (including the Analysis Component) on pp. 338–339. When responding to the cases in 8-1A, think critically about each case. Identify the principles of internal control that has been violated and provide an explanation of why you think that principle has been violated. Identify the consequences of the actions described in the cases. Make a recommendation for what the business should do to ensure adherence to principles of internal control.

Complete Problem 8-2B on p. 341.



Use the spreadsheet in Appendix B available on the student Web site to complete Problem 8-4A. Use the tabs labeled SP08-04A and Given P08-04A
Capstone Discussion QuestioN
A major network is launching a reality program called The Accountant. A group of recent accounting graduates will be competing for a spot in a national accounting firm. What would make someone a good candidate for The Accountant? Describe three challenges the candidates must complete on the program, using as much detail as you can.

The challenges must test contestants’ skill in challenges related to topics covered in this course. Be creative. Describe how the challenge will test the contestant’s accounting skills and knowledge as well as the skills the contestant must have to complete each challenge successfully.

Project: Comprehensive Problem-Perpetual
Resources: Appendix A, Fundamental Accounting Principles, p. 301, and Appendix C

Complete the Comprehensive Problem-Perpetual. In this project, follow the steps of the accounting cycle to process given transactions in a business environment. Then, synthesize special journals, a trial balance, financial statements, and a post-closing trial balance.

Use the spreadsheet in Appendix C available on the student Web site to complete the problems. Use the tabs labeled P07C and Given P07C.

Here's the SOLUTION

Shelton Engineering completed the following transactions in the month of June

Shelton Engineering completed the following transactions in the month of June.

a. Shania Shelton, the owner, invested $105,000 cash, office equipment with a value of $6,000, and

$45,000 of drafting equipment to launch the business.

b. Purchased land worth $54,000 for an office by paying $5,400 cash and signing a long-term note

payable for $48,600.

c. Purchased a portable building with $75,000 cash and moved it onto the land acquired in b.

d. Paid $6,000 cash for the premium on an 18-month insurance policy.

e. Completed and delivered a set of plans for a client and collected $5,700 cash.

f. Purchased $22,500 of additional drafting equipment by paying $10,500 cash and signing a longterm

note payable for $12,000.

g. Completed $12,000 of engineering services for a client. This amount is to be received in 30 days.

h. Purchased $2,250 of additional office equipment on credit.

i. Completed engineering services for $18,000 on credit.

j. Received a bill for rent of equipment that was used on a recently completed job. The $1,200 rent

must be paid within 30 days.

k. Collected $7,200 cash in partial payment from the client described in transaction g.

l. Paid $1,500 cash for wages to a drafting assistant.

m. Paid $2,250 cash to settle the account payable created in transaction h.

n. Paid $675 cash for minor repairs to the drafting equipment.

o. Shelton withdrew $9,360 cash for personal use.

p. Paid $1,500 cash for wages to a drafting assistant.

q. Paid $3,000 cash for advertisements in the local newspaper during



1. Prepare general journal entries to record these transactions (use the account titles listed in

part 2).

2. Open the following accounts—their account numbers are in parentheses (use the balance column

format): Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163);

Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable

(250); S. Shelton, Capital (301); S. Shelton, Withdrawals (302); Engineering Fees Earned (402);

Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs

Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after

each posting.

3. Prepare a trial balance as of the end of this month’s operations.



Here's the SOLUTION

A point is 1 percent of the amount of the loan

1. A point is 1 percent of the amount of the loan. (Points: 2)
True
False


2. The total of all the monthly payments plus the amount of the mortgage is equal to the total cost of interest. (Points: 2)
True
False


3. A mortgage of $80,000.00 with 2 points means the borrower must pay $800.00 at the loan closing. (Points: 2)
True
False


4. Not all mortgages are paid on a monthly basis. (Points: 2)
True
False


5. Monthly payments are the fastest way to pay off a home mortgage. (Points: 2)
True
False


6. Amortization is a means of computing how much of each monthly payment is applied to the outstanding principal. (Points: 2)
True
False


7. Land or anything permanently attached to the land is termed: (Points: 2)
collateral
FNMA
real property
personal property
none of the above


8. A variable rate mortgage means: (Points: 2)
payments will be larger than on a fixed rate mortgage
the interest rate can change
the interest rate is fixed for the first five years
the interest rate cannot change
none of the above


9. Donald purchased a home for $250,000.00. He put down 25 percent of the purchase price. The mortgage was at a rate of 5.50% for 30 years. By using Table 12-1 in the textbook, what were his monthly payments? (Points: 2)
$1,056.00
$1,240.00
$1,065.00
$1,420.00
none of the above


10. Brian bought a new ranch style home for $180,000.00. Brian made a 30 percent down payment. Assuming a rate of 6.5% on a 30 year mortgage, Brian's monthly payment is: (Use the tables in the textbook.) (Points: 2)
$1,783.80
$1,982.00
$594.60
$796.32
none of the above


11. Bill took out a $125,000.00 mortgage on a lake house. The bank charged 2 points at the closing. The points amounted to: (Points: 2)
$5,000.00
$2,500.00
$750.00
$7,500.00
none of the above


12. "One point" represents: (Points: 2)
1 percent of the amount borrowed.
1 payment per month.
1 additional percent for every $10,000 borrowed.
1 percent per month additional charge.
none of the above


13. The repayment of a loan in equal installments that are applied to principal and interest over a specific period of time is called: (Points: 2)
amortization
adjustable rate mortgage
conventional mortgage
constant mortgage
none of the above


14. An amortization schedule shows the: (Points: 2)
payment broken down into principal and interest
increase in the principal
balance of interest outstanding
increase in the loan outstanding
none of the above


15. Chuck purchased a home in Texas for $240,000.00. He made a down payment of 20 percent and obtained a mortgage for 25 years at 6%. What amount of his first payment of $1,236.48 applied to interest? (Points: 2)
$276.48
$1,236.48
$960.00
$136.00
none of the above

Here's the SOLUTION

ACC400 WEEK 3 BE10-1, BYP10-1, BYP11-10

ACCC400, wk3:
BE10-1
BYP10-1
BYP11-10

Here's the SOLUTION

ACC 225 WEEK 7 DQ 1 AND DQ 2 AND CheckPoint: Internal Control and Bank Reconciliations

WEEK 7
Read Ch. 7 & 8 of Fundamental Accounting Principles.
Discussion Question 1
Megagrocer is a grocery chain that operates five stores. The stores are supplied with produce, meat, dairy, and dry goods by six separate vendors. In addition to the stores, Megagrocer maintains an ecommerce site through which customers may order and pay for groceries. The groceries are packed and delivered to customers from one of the five stores in a Megagrocer van by that store’s personnel. Think about the accounting information systems that Megagrocer might use.

What types of source documents might be collected by Megagrocer to be processed by its accounting information systems?
Why are those documents important?

Discussion Question 2

Choose a popular merchandise or service company. How might the company use accounting information systems? In what ways do these systems benefit the company? In what ways might the systems be challenging for the company?

CheckPoint: Accounting Information Systems and Special Journals


Resource: Fundamental Accounting Principles, pp. 289, 290, & 291
Complete Quick Study questions 7-1 & 7-3 on p. 289 and Exercises 7-1, 7-4, 7-7, & 7-10 on pp. 290–291.

. CheckPoint: Internal Control and Bank Reconciliations

Here's the SOLUTION

Baruk Industries has no cash and debt obligation of $36 million

Chapter 16


2. Baruk Industries has no cash and debt obligation of $36 million that is now due. The market value of Baruk’s assets is $81 million, and the firm has no other liabilities. Assume perfect capital markets.


a. Suppose Baruk has 10 million shares outstanding. What is Baruk’s current share price?


b. How many new shares must Baruk issue to raise the capital needed to pay its debt obligations?


c. After repaying the debt, what will Baruk’s share price be?












7. You have received two job offers. Firm A offers to pay you $85,000 per year for two years. Firm B offers to pay you $90,000 for two years. Both jobs are equivalent. Suppose that firm A’s contract is certain, but that firm B has 50% chance of going bankrupt at the end of the year. In that event, it will cancel your contract and pay you the lowest amount possible for you not to quit. If you did quit, you expect you could find a new job paying $85,000 per year, but you would be unemployed for 3 month while you search for it.






a. Say you took the job at firm B, what is the least firm B can pay you next year in order to match what you would earn if you quit?


b. Given you answer to part (b), and assuming your cost of capital is 5%, which offer pays you a higher present value of your expected wage?


c. Based on this example, discuss one reason why firms with a higher risk of bankruptcy may need to offer higher wages to attract employees






14. Marpor Industries has no debt and expects to generate free cash flows of $16 million each year. Marpor believes that if permanently increases its level of debt to $40 million, the risk of financial distress may cause it to lose some customers and receive less favorable terms from its suppliers. As result, Marpor’s expected free cash flows with debt will be only $15 million per year. Suppose Marpor’s tax rate is 35%, the risk-free rate is 5%, the expected return of the market is 15%, and the beta of Marpor’s free cash flows is 1.10 (with or without leverage)


a. estimate Marpor’s value without leverage


b. estimate Marpor’s value with the new leverage










21. You own your own firm, and you want to raise $30 million to fund an expansion. Currently you own 100% of the firms equity, and the firm has no debt. To raise the $30 million solely though equity, you will need to sell two-thirds of the firm. However, you would prefer to maintain at least 50% equity stake in the firm to retain control.






a. If you borrow $20 million, what fraction of the equity will you need to raise the remaining $10 million? (assume perfect capital markets)


b. What is the smallest amount you can borrow to raise the $30 million without giving up control? (assume perfect capital markets)

Here's the SOLUTION

ACC 225 Week 7 Quick Study questions QS 7-1 and QS 7-3 and Exercises 7-1, 7-4, 7-7, and 7-10

ACC 225 Week 7 Quick Study questions QS 7-1 and QS 7-3 and Exercises 7-1, 7-4, 7-7, and 7-10


Complete Quick Study questions QS 7-1 and QS 7-3 on p. 289, and Exercises 7-1, 7-4, 7-7, and 7-10 on p. 290-291. Place the letter of each system principle in the blank next to its best description.
A. Control principle D. Flexibility principle
B. Relevance principle E. Cost-benefit principle
C. Compatibility principle
1. The principle prescribes the accounting information system to change in response to technological
advances and competitive pressures.
2. The principle prescribes the accounting information system to help monitor activities.
3. The principle prescribes the accounting information system to provide timely information
for effective decision making.
4. The principle prescribes the accounting information system to adapt to the unique characteristics
of the company.
5. The principle that affects all other accounting information system principles.

Here's the SOLUTION

Corporate Finance Chapter 12 and 13

Problem 2

Suppose the Market portfolio has and expected return of 10% and a volatility of 20%, while Microsoft’s stock has a volatility of 30%

1. Given its higher volatility, should we expect Microsoft to have and equity cost of capital that is higher than 10%
2. What would have to be true for Microsoft’s equity cost of capital to be equal to 10%

Problem 5

Suppose you are holding a market portfolio, and have invested $12,000 in stock C

1. How much have you invested in stock A
2. How many shares of stock B do you hold
3. If the price of stock C suddenly drops to $4 per share, what trades would you need to make to maintain a market portfolio?

Stock	Price/Share ($)	Numbers of Shares Outstanding (millions)
A	10	10
B	20	12
C	8	3
D	50	1
E	45	20

Chapter 13 questions

1. Assume that the CAPM is a good description of stock price returns.  The market expected return is 7% with 10% volatility and the risk free rate is 3%.  New news arrives that does not change any of these numbers but it does change the expected return of the following stocks:

	Expected return	Volatility	BETA
GREEN LEAF	12%	20%	1.5
NAT SAM	10%	40%	1.8
HANBEL	9%	30%	0.75
REBECCA AUTO	6%	35%	1.2

1. At current market prices, which stocks represent buying opportunities?
2. On which stocks should you put a sell order in

8.  Why Does CAPM imply that investors should trade very rarely?

Here's the SOLUTION

HUM 130 Week 5 DAY 7 --Judaism Presentation

HUM 130 Week 5 DAY 7 --Judaism Presentation

Here's the SOLUTION

ACC400 FINAL EXAM

FINAL EXAM: ACC/400


The condensed financial statements of Westward Corporation for 2009 and 2008 are presented below.
Instructions
1. Compute the following listed ratios for 2009 and 2008 showing supporting calculations. (5.2 points)
a. Current ratio
b. Debt to total Assets
c. Times interest earned
d. Inventory turnover
e. Profit margin ratio
f. Return on common stockholders' equity
g. Return on assets
2. Perform horizontal and vertical analysis on Westward’s financial statements, show your results. (3.0 points)
3. Assess the financial performance of Westward, given the analysis tools used in questions 1 and 2 above. (5.3 points)
4. If the company wanted to perform industry comparison analysis, what references would you recommend it use? (1.5 points)
FINAL EXAM: ACC/400
The condensed financial statements of Westward Corporation for 2009 and 2008 are presented below.
Instructions
1. Compute the following listed ratios for 2009 and 2008 showing supporting calculations. (5.2 points)
a. Current ratio
b. Debt to total Assets
c. Times interest earned
d. Inventory turnover
e. Profit margin ratio
f. Return on common stockholders' equity
g. Return on assets
2. Perform horizontal and vertical analysis on Westward’s financial statements, show your results. (3.0 points)
3. Assess the financial performance of Westward, given the analysis tools used in questions 1 and 2 above. (5.3 points)
4. If the company wanted to perform industry comparison analysis, what references would you recommend it use? (1.5 points)

Here's the SOLUTION

FIN 200 WEEK 4 Checkpoint Break Even Analysis.

Fin 200 Wk 4 Checkpoint Break Even Analysis.


Problem 1 on pg. 141 Ch. 5
Gateway Appliances toaster sells for $20/unit and the variable cost to produce them is $15. Gateway estimates fixed costs are $80,000.
A) Compute break- even analysis in units.
B) Fill in the table below in dollars to illustrate the break-even point has been achieved.
Sales_________________
Fixed Cost______________________
Total Variable Cost______________________
Net proftit(loss)___________________________


This is what I got but don’t know if it is right.


$80,000/$20=16,000-$15=$15,984( needed to sell to break even)
$20-$15= $5
$80,000/$5=
$80,000/$20-15=
16
Sales=$20/unit
Fixed Cost= $80,000
Total Variable Cost=$15/unit
Net Profit=15,984


Is this right or wrong and why.

Here's the SOLUTION

XECO/212--week 2 CheckPoint: Price Elasticity and Supply and Demand Short Answer Quiz

XECO/212--week 2 CheckPoint: Price Elasticity and Supply and Demand Short Answer Quiz




CheckPoint: Price Elasticity and Supply and Demand Short Answer Quiz


Complete the Price Elasticity and Supply and Demand Short Answer Quiz in Appendix B.
Post your completed chart as an attachment

Here's the SOLUTION

XECO/212--week 4 Assignment: Maximizing Profits in Market Structures Paper

XECO/212--week 4 Assignment: Maximizing Profits in Market Structures Paper

Assignment: Maximizing Profits in Market Structures Paper

Consider competitive markets, monopolies, and oligopolies. What role does each of these play in an economy?
Write a 1,050- to 1400-word paper on Market Structures and Maximizing Profits. Address:

What are the characteristics of each market structure?
How is price determined in each market structure in terms of maximizing profits?
How is output determined in each market structure in terms of maximizing profits?
What are the barriers to entry, if any?
What role does each market structure play in the economy?

Format your paper according to APA (6th Edition) guidelines.
Post your assignment as an attachment.

Here's the SOLUTION

RES341 WEEK 5 Individual Assignment: Using Probability Distribution in Research Simulation

Individual Assignment: Using Probability Distribution in Research Simulation

Resource: Using Probability Distribution in Research simulation

Complete the Using Probability Distribution in Research simulation located on your student website. During the third cycle of the simulation, you need to make a decision about buying machinery. The stakeholders in the simulation have different opinions as to the proper course of action the organization should take.

Write a 350-word memo to the stakeholders in the simulation.

Explain the decisions you made in the third cycle of the simulation.

State the reasons for your decision and include an explanation of why you did not follow the recommendations of the stakeholders.

Here's the SOLUTION

RES341 WEEK 5--Individual Assignment: Exercises From the E-Text Chapter Exercises 8.46 and 8.62

Individual Assignment: Exercises From the E-Text


Resources: Ch. 8 Applied Statistics in Business and Economics
Prepare answers to the following exercises in Ch. 8 of Applied Statistics in Business and Economics:


Chapter Review questions 5 and 6
Chapter Exercises 8.46 and 8.62

Here's the SOLUTION

XACC 280 WEEK 8 CHECKPOINT

xacc 280 week 8 checkpoint regulatory bodies, in 250 to 300 words what are the major regulator;y bodies and their functions

Here's the SOLUTION

HUM 130 Week 5 DAY 7 --Judaism Presentation

HUM 130 Week 5 DAY 7 --Judaism Presentation

Here's the SOLUTION

ACC/226 CheckPoint:Classifyingand Preparing Payroll Entries Exercises 11-1 and.11-7

ACC/226
Exercises 11-1 and 11-7 on pp. 451–452 of Fundamental Accounting Principles

Here's the SOLUTION

Cyrus Brown Manufacturing (CBM)

Please read the relevant parts of your textbook which refer to cash flow and financial planning.
To avoid any uncertainty regarding his business' financing needs at the time when such needs may arise, Cyrus Brown wants to develop a Cash Budget for his latest venture- Cyrus Brown Manufacturing (CBM). He has estimated the following sales forecast for CBM over the next nine months:
March 2004 $250,000
April 275,000
May 320,000
June 450,000
July 575,000
August 700,000
September 825,000
October 350,000
November 285,000
He has also gathered the following collection estimates regarding the forecast sales: Collection within the month of sale, 10%; collection the month following sales, 65%, and collection the second month following sales, 25%. Payments for direct manufacturing costs like raw materials and labor are made during the month that follows the one in which such costs have been incurred. These costs are estimated as follows:
March 2004 $187,500
April 206,250
May 240,000
June 337,500
July 431,250
August 525,000
September 618,750
October 262,500
Administrative salaries will approximately amount to $35,000 a month; lease payments around $15,000 a month; depreciation charges, 15,000 a month; a one-time new plant investment in the amount of $95,000 is expected to be incurred and paid in June; income tax payments estimated to be around $ 55,000 will be due in both June and September; and finally, miscellaneous costs are estimated to be around $10,000 a month. Cash on hand on March 1 will be around $50,000; and a minimum cash balance of $50,000 shall be on hand at all times.
Prepare a monthly cash budget for Cyrus Brown Manufacturing for the nine month period, March through November.
Based on your findings in part a, will the company need any outside financing?
What is the minimum line of credit that CBM will need?
What do you think of CBM's cash position during the budget period? Do you see any concerns for the company in this regard?
If you were a bank manager would you want CBM as your client? Why or why not?

Here's the SOLUTION

A1. (Calculating the WACC) The required return on debt is 8%

Chapter 8

A1. (Calculating the WACC) The required return on debt is 8%, the required return on equity
is 14%, and the marginal tax rate is 40%. If the firm is financed 70% equity and 30% debt,
what is the weighted average cost of capital?

A4. (Estimating the WACC with three sources of capital) Eschevarria Research has the capital
structure given here. If Eschevarria's tax rate is 30%, what is its WACC?
BOOK VALUE MARKET VALUE BEFORE-TAX COST
Bonds $1,000 $1,000 8%
Preferred stock 400 300 9%
Common stock 600 1,700 14%
Chapter 9
A4. (Investment criteria) An investment of $100 returns exactly $100 in one year. The cost of
capital is 10%.
a. What are the payback, NPV, and IRR for this investment?
b. Is this a profitable investment?

A5. (Investment criteria) Compute the NPV, IRR, and payback period for the following investment.
The cost of capital is 10%.
YEAR 0 1 2 3
Cash flow -200,000 100,000 100,000 150,000


Chapter 10

A1. (Net income and net cash flows) Julie Stansfield has a bicycle rental shop with annual revenues
of $200,000. Cash operating expenses for rent, labor, and utilities are $70,000.
Depreciation is $40,000. Julie's tax rate is 40%.
a. What should be Julie's net income?
b. What is her net cash flow?


A2. (MACRS depreciation) Modigliani Jet Ski Company has purchased several firm cars for a
total of $150,000. They are classed as five-year property.
a. What is the annual depreciation charge for these assets?
b. If Modigliani's marginal tax rate is 40%, what is the annual depreciation tax shield?
c. Discounted at 8%, what is the present value of the depreciation tax shields?

Here's the SOLUTION

(Cash conversion cycle) Dennis Lasser has collected some information

1.(Cash conversion cycle) Dennis Lasser has collected some information about a food whole-sale in order to estimate its cash conversion cycle. The accumulated information is given. What will Dennis find the cash conversion cycle to be?

Inventory = 10X Inventory conversion period = 365/10 = 36.5 days
Receivables turnover = 20X Receivables collection period = 365/20 = 18.25 days
Payables turnover = 25X Payables deferral period = 365/25 = 14.6 days

2. (Cost of bank loan) A bank loan agreement calls for an interest rate equal to prime rate plus 1%. If prime rate averages 9% and non-interest-earning compensating balances equal to 10% of the loan must be maintained, what are the APR and the APY of the loan assuming annual payments?

3.(NPV) of granting credit) A credit sale of $15,000 has a 95% probability of being repaid in two months and a 5% probability of a complete default. If the investment in the sale is $12,000 and the opportunity cost of funds is 15% per year, what is the NPV of granting credit?
4. (Economic order quantity) Knoxville Accountants LLP consumes 100,000 packets of plain copier paper annually. The usage is roughly constant throughout the year. The carrying cost of this inventory is $2.00 per unit average inventory per year. The ordering and delivery cost is a fixed $100 per order.
a. What is the economic order quantity?
b. How many orders will be placed per year using the EOQ?
c. What is the average inventory level?
d. What is the total annual inventory cost?

Here's the SOLUTION

10-1A (Allocate payments and receipts to fixed asset accounts)

(Allocate payments and receipts to fixed asset accounts)

The following payments and receipts are related to land, land improvements, and buildings acquitted for use in a wholesale ceramic business. The receipts are identified by an asterisk.


a. Fee paid to attorney for title search… $3,000
b. Cost of real estate acquired as a plant site: Land…. 325,00
Building .. 75,000
c. Delinquent real estate taxes on property, assumed by purchaser… 10,000
d. Special assessment paid to city for extension of water main to property,,, 12,800
e. Cost of razing and removing building… 3,900
f. Proceeds from sale of salvage materials from old building… 4,000*
g. Cost of filling and grading land… 17,500
h. Architect’s and engineers fees for plans and supervision…40,000
i. Premium on one-year insurance policy during construction… 4,800
j. Cost of trees and shrubbery planted… 9.000
k. Money borrowed to pay building contractor… 800,000*
l. Cost of paving parking lot to be used by customers…15,000
m. Cost of repairing windstorm damage during construction… 2,000
n. Cost of repairing vandalism damage during construction… 2,500
o. Cost of floodlights on parking lot… 1,100
p. Interest incurred on building loan during construction… 42,000
q. Payment to building contractor for new building… 915,000
r. Proceeds from insurance company for windstorm and vandalism damage…4,000*
s. Refund of premium on insurance policy (i) canceled after 11 months… 400*




Instructions
1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicate receipts by asterisk. Identify each item by letter and list the amounts in columnar form, as follows:

Land Other
Item Land Improvements Building Accounts
2. Determine the amount debited to Land, Land Improvements, and Building.
3. The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation.

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P1-2 The financial statements at the end of La Jolla Realty’s

P1-2 The financial statements at the end of La Jolla Realty’s first month of operations are shown below.


LA JOLLA REALTY


Income Statement
For the Month Ended April 30, 2008
Fees earned $56,400
Operating expenses:
Wages expense $ (a)
Rent expense 5,760
Supplies expense 4,800
Utilities expense 3,240
Miscellaneous expense 1,980
Total operating expenses 28,680
Net income $ (b)


LA JOLLA REALTY
Retained Earnings Statement
For the Month Ended April 30, 2008
Net income for April $ (c)
Less dividends (d)
Retained earnings, April 30, 2008 $ (e)


LA JOLLA REALTY
Balance Sheet
April 30, 2008
Assets
Cash $35,400
Supplies 2,400
Land (f)
Total assets $ (g)
Liabilities
Accounts payable $ 2,880
Stockholders’ Equity
Capital stock $ (h)
Retained earnings (i) (j)
Total liabilities and stockholders’ equity $ (k)


LA JOLLA REALTY
Statement of Cash Flows
For the Month Ended April 30, 2008
Cash flows from operating activities:
Cash received from customers $ (l)
Deduct cash payments for expenses and payments to creditors 28,200
Net cash flows from operating activities $ (m)
Cash flows from investing activities:
Cash payments for acquisition of land 86,400
Cash flows from financing activities:
Cash received from issuing capital stock $108,000
Deduct dividends 14,400
Net cash flows from financing activities (n)
Net cash flow and April 30, 2008 cash balance $ (o)


Instructions
1. Would you classify a realty business like La Jolla Realty as a manufacturing, merchandising,
or service business?
2. By analyzing the interrelationships between the fi nancial statements, determine the proper
amounts for (a) through (o).

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