Here are comparative balance sheets for Velo Company.

Additional information:

Prepare a statement of cash flows for 2017 using the indirect method.

Discuss the applicability of the first and third general standards of GAAS to accounting and auditing research.

Starbucks is a coffee company—a big coffee company. During a 10-year period, the number of Starbucks locations in China grew from 24 to over 1,000. The following is adapted from Starbucks’s annual report for the year ended October 2, 2016, and dollars are reported in millions.

Assume that the following events occurred in the following quarter, which ended December 31, 2016. Dollars are in millions.

1. Paid $1,350 cash for additional intangible assets.
2. Issued additional shares of common stock for $10,700 in cash.
3. Purchased equipment; paid $4,700 in cash and signed additional long-term loans for $9,600.
4. Paid $870 cash for accounts payable owed at October 2.
5. Conducted negotiations to purchase a coffee farm, which is expected to cost $8,600.

4. Summarize the journal entry effects from part 3 using T-accounts. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Each response should be about one paragraph long, describing the justification for your decision.

Costco Wholesale sells a yearly Executive Membership on April 1st, and receives $120 in cash from the customer. The contract states that the membership is not refundable, unless the member relocates to an area in which there is not a Costco within 20 miles. Are the revenue recognition criteria met or not met? Why or why not?

NutraLabs, Inc., leased a protein analyzer to Werner Chemical, Inc., on September 30, 2018. NutraLabs manufactured the machine at a cost of $5 million. The five-year lease agreement calls for Werner to make quarterly lease payments of $391,548, payable each September 30, December 31, March 31, June 30, with the first payment at September 30, 2018. NutraLabs’ implicit interest rate is 12%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which NutraLabs is “selling” the equipment (present value of the lease payments) at September 30, 2018 2. What pretax amounts related to the lease would NutraLabs report in its balance sheet at December 31, 2018? 3. What pretax amounts related to the lease would NutraLabs report in its income statement for the year ended December 31, 2018? 4. What pretax amounts related to the lease would NutraLabs report in its statement of cash flows for the year ended December 31, 2018?

compute horizontal analysis - HP Inc.

base year 2018

In 2016, Makkah Corporation bought land for as a site for its new factory facility that was planned to be built in 2016. The following information related to the land and the factory building:

1. Purchase cost of the land                                                        $400,000
2. Closing cost                                                                                30,000
3. Assumption of lien on the land                                                 100,000
4. Cleaning and draining cost for the land                                     60,000
5. Demolition and removal of an old building on the land             70,000
6. Sale of salvaged material from the old building                         18,000
7. Land permanent improvements                                                  60,000
8. Costs of walkways, fences, and parking lots                             80,000
9. Building permit fees                                                                  24,000
10. Architectural design costs                                                           58,000
11. Excavation costs                                                                         72,000
12. Construction costs of the new building                                    570,000

Requirements:

1. What was the cost of the land that should be recognized on Makkah’s balance sheet on Dec 31, 2016?
2. If the new building was completed in 2016, what was the cost of the building that should be recognized on Makkah’s book at the end of 2016 (ignore any depreciation)?

Keeton Company sponsors a defined benefit pension plan for its 600 employees. The company’s actuary provided the following information about the plan.

The average remaining service life per employee is 10.5 years. The service cost component of net periodic pension expense for employee services rendered amounted to $400,000 in 2017 and $475,000 in 2018. The accumulated OCI (PSC) on January 1, 2017, was $1,260,000. No benefits have been paid.

Correct answer iconYour answer is correct.

Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2017 and 2018.

Prepare a schedule which reflects the amount of accumulated OCI (G/L) to be amortized as a component of pension expense for 2017 and 2018.

Determine the total amount of pension expense to be recognized by Keeton Company in 2017 and 2018.

Determine the amount of sales (units) that would be necessary under

Break-Even Sales Under Present and Proposed Conditions

Darby Company, operating at full capacity, sold 126,900 units at a price of $126 per unit during the current year. Its income statement for the current year is as follows:

The division of costs between fixed and variable is as follows:

Management is considering a plant expansion program that will permit an increase of $1,260,000 in yearly sales. The expansion will increase fixed costs by $126,000, but will not affect the relationship between sales and variable costs.

6. Determine the maximum income from operations possible with the expanded plant. Enter the final answer rounded to the nearest dollar.
$

7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? Enter the final answer rounded to the nearest dollar.
$

Determining missing items in return and residual income computations

Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes:

Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number.

You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below.

The company sells many styles of earrings, but all are sold for the same price—$16 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):

The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month.

Suppliers are paid $4.60 for a pair of earrings. One-half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. Only 20% of a month’s sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible.

Monthly operating expenses for the company are given below:

Insurance is paid on an annual basis, in November of each year.

The company plans to purchase $19,000 in new equipment during May and $46,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $19,500 each quarter, payable in the first month of the following quarter.

The company’s balance sheet as of March 31 is given below:

The company maintains a minimum cash balance of $56,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.

The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $56,000 in cash.

Required:

Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules:

1. a. A sales budget, by month and in total.

    b. A schedule of expected cash collections, by month and in total.

    c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.

    d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.

2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $56,000.

3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach.

4. A budgeted balance sheet as of June 30.

Sunshine Co. Ltd. is a manufacturing company. It manufactures 2 products, known as ‘A’ and ‘Z’. The following information is given for the year 2017: -
The standard direct materials and direct labour used for each product is as follows:
‘A’ ‘Z’
Material 1 10 units 8 units
Material 2 5 units 9 units
Direct Labour 10 hours 15 hours
Standard direct materials and direct labour costs:
($)
Material 1 8.20 per unit
Material 2 17.00 per unit
Direct Labour 14.00 per hour

ICLBAT/JANUARY 2019
4

Other important data is as follows for the year 2017:
Direct material
Material 1 Material 2
Opening inventory (units) 9,000 8,500
Closing inventory required (units) 10,000 2,000

Finished product
‘A’ ‘Z’
Forecast sales (units) 8,500 1,600
Selling price per unit $ 500 $ 660
Ending inventory required (units) 2,000 100
Beginning inventory (units) 200 90

Required:
Prepare the following budgets for the year 2017: -
(a) Sales budget

(b) Production budget

(c) Direct materials usage budget

(d) Direct materials purchase budget

(e) Direct labour budget

20-3 20-16 Cost of Production Report

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

1. Direct materials and conversion equivalent units of production for August
2. Direct materials and conversion costs per equivalent unit for August
3. Cost of goods finished during August
4. Cost of work in process at August 31

If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.