1.  XYZ Company, a manufacturer of computer peripheries, assembles a particular product line at a wholly owned facility in Singapore. The product is designed at XYZ’s headquarters in the United States, but the different components used in the assembly process are manufactured throughout Asia and shipped to Singapore for final assembly. Some of the components are manufactured in multiple locations, so the customer can actually designate where XYZ should source the components. The final product is assembled in Singapore and then shipped via Emery Freight to customers throughout Asia. XYZ Singapore does not buy any components from the United States, but it invoices all of the components purchased from Asian suppliers in U.S. dollars. In addition, it sells the product to Asian customers in U.S. dollars. However, all of its expenses in Singapore are paid in Singapore dollars. Most of the key marketing decisions are made by the U.S. marketing staff, although the Singapore staff acts as a liaison with Emery Freight personnel and deals with the local workers, most of whom come from Sri Lanka on short-term work visas.

     XYZ prefers to translate the results of their Singapore subsidiary into dollars using the current rate method. What is the advantage to XYZ of using the current rate method? As their auditor, what do you think of their decision? If their decision is wrong and they should be using the temporal method, is it possible for them to change?

You are a nonprofit manager and you are preparing for the upcoming fiscal year. You are in charge of leading the budget process for the organization. Briefly describe how you would start to prepare the organization’s budget. What considerations would you need to take into account? Who would you involve in the process? What are the timeline and key activities of the budget process? Once your budget is developed, what steps would you take to ensure the organization is on track to meet its budget?

Preparing a Budget

o Describe the key steps you would take to prepare your nonprofit organization’s budget. Cite at least one academic source to support your response.

o Discuss the considerations that you would need to take into account when preparing the nonprofit organization’s budget. Cite at least one academic source to support your response.

o Describe individuals involved in the budgeting process. o Outline the budgeting process timeline and key activities.

 Ongoing

o Describe the steps you would take to ensure the organization is on track to meet its budget.

Process Co has two divisions, A and B. Division A produces three types of chemicals: products L, M and S, using a common process. Each of the products can either be sold by Division A to the external market at split-off point (after the common process is complete) or can be transferred to Division B for individual further processing into products LX, MX and SX.

In November 20X1, which is a typical month, Division A’s output was as follows:

Product             Kg

     L               1,200

     M              1,400

     S               1,800

The market selling prices per kg for the products, both at split-off point and after further processing, are as follows:

                         $                            $

     L               5.60        LX            6.70

     M              6.50        MX           7.90

     S               6.10        SX           6.80

The specific costs for each of the individual further processes are:

Variable cost of $0.50 per kg of LX

Variable cost of $0.70 per kg of MX

Variable cost of $0.80 per kg of SX

Further processing leads to a normal loss of 5% at the beginning of the process for each of the products being processed.

Required

1. Calculate and conclude whether any of the products should be further processed in Division B in order to optimise the profit for the company as a whole.

It has been suggested that Division A should transfer products L and M to Division B for further processing, in order to optimise the profit of the company as a whole. Divisions A and B are both investment centres and all transfers from Division A to Division B would be made using the actual marginal cost. As a result, if Division A were to make the transfers as suggested, their divisional profits would be much lower than if it were to sell both products externally at split-off point. Division B’s profits, however, would be much higher.

Required

       (b) Discuss the issues arising from this suggested approach to transfer pricing.

3. A student comes up with a new ratio to measure performance: she calls it profit
ratio: ROCE/WACC
o What does it measure? Interpret it.
o Do you consider it a good performance measure? Explain.
o Can you think of a better name for it? Why?

On March 31, 2018, the Herzog Company purchased a factory complete with machinery and equipment. The allocation of the total purchase price of $960,000 to the various types of assets along with estimated useful lives and residual values are as follows:

On June 29, 2019, machinery included in the March 31, 2018, purchase that cost $96,000 was sold for $76,000. Herzog uses the straight-line depreciation method for buildings and machinery and the sum-of-the-years'-digits method for equipment. Partial-year depreciation is calculated based on the number of months an asset is in service.

Required:

1. Compute depreciation expense on the building, machinery, and equipment for 2018.
2. Prepare the journal entries to record the depreciation on the machinery sold on June 29, 2019, and the sale of machinery.
3. Compute depreciation expense on the building, remaining machinery, and equipment for 2019.

Audit - audit procedures

After getting the lists and totals of inventory with market value or value-at-cost of greater than $10,000, what audit procedure would you complete next? What risk and management assertion are you addressing with your proposed audit procedure?

Transactions; Financial Statements

On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:

1. Opened a business bank account with a deposit of $25,000 from personal funds.
2. Purchased office supplies on account, $2,530.
3. Paid creditor on account, $1,600.
4. Earned sales commissions, receiving cash, $25,850.
5. Paid rent on office and equipment for the month, $5,070.
6. Withdrew cash for personal use, $8,000.
7. Paid automobile expenses (including rental charge) for the month, $2,430, and miscellaneous expenses, $1,160.
8. Paid office salaries, $3,050.
9. Determined that the cost of supplies on hand was $850; therefore, the cost of supplies used was $1,680.

Required:

1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. If required, enter negative values as negative numbers.

repare an income statement for July.

Feedback

2. An income statement reports the revenues and expenses. When revenues are larger than the expenses, the difference is net income.

Prepare a statement of owner's equity for July. If an amount is zero, enter "0".

Feedback

3. Follow Example Exercise 1-5. Recall that the statement of owner's equity considers beginning owner capital, additional investments of the owner and net income for the year and withdrawals to calculate the ending capital. The net income from the income statement is needed to complete the statement of owner's equity.

Prepare a balance sheet as of July 31.

prepare statement of cash flow: Sales revenue $454,707 Sales discount $56,240 Sales return and allowance $5,687 Beginning inventory $251,890 Purchases $511,692 Ending inventory $628,122 Operating expenses, including depreciation of $46,500 $58,910 Income tax expense $27,280 Interest expense $4,730 Loss on disposal of plant assets $7,500

On January 2, 2013, Illinois Corporation issued 200,000 new shares of its $5 par value common stock valued at $19 a share for all of North Dakota Company's outstanding common shares. The fair value and book value of North Dakota's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2013 is as follows: Illionois North Dakota

Cash $150,000 $240,000

Inventories 320,000 800,000

Other current assets 500,000 1,000,000

Land 350,000 500,000

Property, plant & equipment 4,000,000 3,000,000

Total Assets $5,320,000 $5,540,000

Accounts payable $1,000,000 $600,000

Notes payable 1,300,000 1,320,000

Common stock, $5 par 2,000,000 1,000,000

Additional paid-in capital 1,000,000 200,000

Retained earnings 20,000 2,420,000

Total Liabilities & Equities $5,320,000 $5,540,000

Prepare a consolidated balance sheet for Illinois Corporation immediately after the business combination.

I need to do a solvency ratio analysis. The company I have chosen for this is Lyft. Can someone help me with this? How do I upload the financial statement?

C4-2 From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial Statements and Closing Journal Entries (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4-1, LO 4-2, LO 4-3, LO 4-4, LO 4-5, LO 4-6]

[The following information applies to the questions displayed below.]

Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify):

Transactions and events during 2018 (summarized in thousands of dollars) follow:

1. Borrowed $13 cash on March 1 using a short-term note.
2. Purchased land on March 2 for future building site; paid cash, $7.
3. Issued additional shares of common stock on April 3 for $31.
4. Purchased software on July 4, $12 cash.
5. Purchased supplies on account on October 5 for future use, $17.
6. Paid accounts payable on November 6, $14.
7. Signed a $30 service contract on November 7 to start February 1, 2019.
8. Recorded revenues of $176 on December 8, including $48 on credit and $128 collected in cash.
1. Recognized salaries and wages expense on December 9, $93 paid in cash.
10. Collected accounts receivable on December 10, $32.

Data for adjusting journal entries as of December 31:

11. Unrecorded amortization for the year on software, $8.

50. Supplies counted on December 31, 2018, $11.

1000. Depreciation for the year on the equipment, $7.
14. Interest of $2 to accrue on notes payable.
15. Salaries and wages earned but not yet paid or recorded, $11.
16. Income tax for the year was $9. It will be paid in 2019.

C4-2 Part 3

3. Prepare an unadjusted trial balance. (Enter your answers in thousands of dollars.)

This year Jack intends to file a married-joint return. Jack received $173,400 of salary and paid $8,600 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,550 and $35,100 of alimony to his ex-wife, Diane, who divorced him in 2012. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Suppose that Jack also reported income of $10,900 from a half share of profits from a partnership. Disregard any potential self-employment taxes on this income. What AGI would Jack report under these circumstances?

Part 2: Problem Solving - Consolidated Financials Assume that on 1/1/X0, a parent company acquires a 70% interest in its subsidiary for a price at $480,000 over book value. The excess is assigned as follows: Asset Fair Value Useful Life Patent $320,000 8 years Goodwill 160,000 Indefinite 70% of the goodwill is allocated to the parent. Included in the attached Excel spreadsheet are the pre-consolidation financial statements for both the parent and the subsidiary.