Question

In: Accounting

1) Consider the following information for Executive Electronics: 12/31/2017 12/31/2018 Total assets $12,650,000 $12,100,000 Noninterest-bearing current...

1)

Consider the following information for Executive Electronics:
12/31/2017 12/31/2018
Total assets $12,650,000 $12,100,000
Noninterest-bearing current liabilities 550,000 572,000
Net income 770,000 880,000
Interest expense 2,310,000 330,000
Tax rate 40% 40%
Required rate of return 10% 12%

(a)

Evaluate the company in terms of residual income (RI), which is equivalent to EVA since there are no adjustments for accounting distortions. (Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).)
2017 2018
Residual income $ $

2)

Crown Jewelry produced 1,500 rings during March. The standard cost of each ounce of gold used in a ring is $1,000 per ounce. The standard quantity of material for each ring is a 0.5 ounce of gold per ring. The cost of gold purchased and used in March was $788,480 at $1,024 per ounce. Determine the material price variance and the material quantity variance for March. Indicate whether each variance is favorable or unfavorable. (Enter all variances as a positive number.)

Material price variance:

Material quantity variance:   

Solutions

Expert Solution

Answer

..


Related Solutions

Consider the following for Executive Electronics Total Assets: 2017- 12,650,000 and 2018- 12,100,000 Noninterest-bearing current liabilities:...
Consider the following for Executive Electronics Total Assets: 2017- 12,650,000 and 2018- 12,100,000 Noninterest-bearing current liabilities: 2017-550,000 and 2018- 572,000 Net income: 2017- 770,000 and 2018- 880,000 Interest Expense: 2017- $2,310,000 and 2018- 330,000 Tax Rate: 2017- 40% and 2018-40% Required rate of return: 2017- 10% and 2018-12% Evaluate the company in terms of residual income (RI) which is equivalent to EVA since there are nonadjustments for accounting distortions. Residual income 2017: Residual income 2018:
T. P. Jarmon Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash $15,000 $14,000...
T. P. Jarmon Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash $15,000 $14,000 Marketable securities 6,000 6,200 Accounts receivable 42,000 33,000 Inventory 51,000 84,000 Prepaid rent 1,200 1,100 Total current assets $115,200 $138,300 Net plant and equipment $286,000 $270,000 Total assets $401,200 $408,300 Liabilities and Equity 2017 2018 Accounts payable $48,000 $57,000 Accruals 6,000 5,000 Notes payable 15,000 13,000 Total current liabilities $69,000 $75,000 Long-term debt $160,000 $150,000 Common stockholders' equity $172,200 $183,300 Total liabilities and equity...
Historical Ratios Projected Ratios 12/31/2014 12/31/2015 12/31/2016 12/31/2017 4/1/2018 Current Ratio 1.161 0.833 Current Ratio 0.951...
Historical Ratios Projected Ratios 12/31/2014 12/31/2015 12/31/2016 12/31/2017 4/1/2018 Current Ratio 1.161 0.833 Current Ratio 0.951 0.964 0.613 Quick Ratio 0.522 0.426 Quick Ratio 0.46 0.466 0.294 Total Debt-to-Total-Assets Ratio 0.73 0.804 Debt-to-Total-Assets Ratio 0.85 0.832 0.865 Total Debt-to-Equity Ratio 2.82 4.306 Debt-to-Equity Ratio 5.976 4.962 6.525 Times-Interest-Earned Ratio 16.618 13.359 Times-Interest-Earned Ratio 14.376 15.802 16.776 Question: What do the ratios calculated communicate about the financial strengths and weaknesses of Hershey? Question: Based on your calculations, would you invest in...
The following information is computed from Katy Inc.'s annual report for 2018. 2018   2017 Current assets...
The following information is computed from Katy Inc.'s annual report for 2018. 2018   2017 Current assets $ 2,731,020 $ 2,364,916 Property and equipment, net 10,960,286 8,516,833 Intangible assets, at cost less applicable    amortization     294,775       255,919   $13,986,081   $11,137,668   Current liabilities $ 3,168,123 $ 2,210,735 Deferred federal income taxes 160,000 26,000 Mortgage note payable 456,000 - Stockholders' equity 10,201,958     8,900,933   $13,986,081   $11,137,668   Net sales $33,410,599 $25,804,285 Cost of goods sold (30,168,715) (23,159,745) Selling and administrative expense (2,000,000) (1,500,000) Interest expense (216,936) (39,456)...
Below are comparative balance sheets for Tigger Inc. at December 31, 2018 and 2017: 12/31/2018 12/31/2017...
Below are comparative balance sheets for Tigger Inc. at December 31, 2018 and 2017: 12/31/2018 12/31/2017 Cash $ 21,900 $ 10,000 Accounts receivables (net)     50,000    45,000 Inventory     64,000    70,000 Land     0    32,000 Plant assets 580,000 560,000 Accumulated depreciation (103,000) (100,000) $612,900 $617,000 Accounts payable $ 90,000 $ 93,000 Salaries payable      8,000      4,000 Dividends payable 1,700 2,300 Payable for general & admin expenses    18,000    10,000 Income tax payable      9,050     ...
Data for Tropical Enterprises? follows: 2019 2018 2017 Total Current Assets $400,000 $300,000 $250,000 Total Current...
Data for Tropical Enterprises? follows: 2019 2018 2017 Total Current Assets $400,000 $300,000 $250,000 Total Current Liabilities 190,000 150,000 125,000 Compute the dollar amount of change and the percentage of change in Tropical ?Enterprises's working capital each year during 2019 and 2018. What do the calculated changes? indicate? Begin by selecting the formula to compute the working? capital, the dollar amount of change and the percentage of change in Tropical ?Enterprises' working capital. Working capital =__________________________________ Dollar amount of change...
Your Name, Inc. Balance Sheet 12/31/2017                         Current Assets          &nbs
Your Name, Inc. Balance Sheet 12/31/2017                         Current Assets                                     Cash                                                    $18,000                                     Marketable Securities (Short-term)        2,000                                     Accounts Receivable                           14,000                                         Allowance for Bad Debt                 (2,000)                                     Inventory                                            15,000                                     Prepaid Insurance                                   5,000                                        Total Current Assets                        $52,000                         Property, Plant, and Equipment                                     Land                                                    $30,000                                     Building                                              150,000                                         Accumulated Dep. – Building        (45,000)                                     Equipment                                           100,000                                         Accumulated Dep. - Equipment     (20,000)                                        Total PPE                                         $215,000                                    ...
ALL THE INFORMATION I HAVE IS STATED BELOW! 1.Statement of Cash Flows. Assets 31/12/2017 31/12/2016 Cash...
ALL THE INFORMATION I HAVE IS STATED BELOW! 1.Statement of Cash Flows. Assets 31/12/2017 31/12/2016 Cash $81,000 $54,000 Accounts receivable, net $79,500 $85,500 Inventory $241,500 $184,500 Land $270,000 $427,500 Building $450,000 $450,000 Accumulated depreciation—building ($112,500) ($90,000) Equipment $2,347,500 $1,350,000 Accumulated depreciation—equipment ($265,500) ($211,500) Total of Assets $3,091,500 $2,250,000 Liabilities & Equity Accounts payable $303,000 $225,000 Bonds payable $675,000 $0 Capital stock, $10 par $1,875,000 $1,875,000 Retained earnings $238,500 $150,000 Total of Liabilities & Equity $3,091,500 $2,250,000 Additional Data: 1. Net...
Darwin Company, a manufacturer, has provided the following information pertaining to its assets and liabilities: 12/31/2018...
Darwin Company, a manufacturer, has provided the following information pertaining to its assets and liabilities: 12/31/2018 12/31/2019 Account receivable $10,000 $4,000 Inventory $11,000 $12,000 Prepaid insurance $4,000 $7,000 Wage payable $3,000 $4,000 Unearned revenue $4,000 $2,000 In addition, Darwin also reported that its net income in 2019 was $10,000 and the depreciation expense in 2019 was $5,000. (1) How much was Darwin’s cash flow from operating activities in 2019? (8 points) Suppose Darwin Company has also provided the following information...
2020/12/31 2019/12/31 Current Assets: Cash $6,100 $7,100 Accounts Receivable 61,500 51,000 Inventory 44,800 63,900 Total Current...
2020/12/31 2019/12/31 Current Assets: Cash $6,100 $7,100 Accounts Receivable 61,500 51,000 Inventory 44,800 63,900 Total Current Assets 112,400 122,000 Property, Plant, and Equipment 155,200 129,900 Less: Accumulated Depreciation (35,200) (24,800) Land 80,600 67,700 Total Assets $313,000 $294,800 Current Liabilities: Accounts Payable 45,800 39,800 Wages Payable 12,000 9,900 Long Term Notes Payable 68,100 78,800 Total Liabilities 125,900 128,500 Stockholders' Equity: Common Stock 130,000 130,000 Retained Earnings 57,100 36,300 Total Stockholders' Equity 187,100 166,300 Total Liabilities & Stockholders' Equity $313,000 $294,800 Sales...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT