British Columbia Lumber has a raw lumber division and a finished lumber division. The variable costs are as follows:

Raw lumber division: R100 per 100 m² of raw lumber
Finished lumber division: R125 per 100 m² of finished lumber

Assume that there is no m² loss in processing raw lumber into finished lumber. Raw lumber can be sold at R200 per 100 m². Finished lumber can be sold at R275 per 100 m².

Required:

2.1 Should British Columbia Lumber process raw lumber into its finished form? Show your calculations.

2.2 Assume that internal transfers are made at 110% of variable costs. Will each division maximise its division contribution by adopting the action that is in the best interest of British Columbia Lumber as a whole? Explain.

2.3 Assume that the internal transfers are made at market prices. Will each division maximise its division contribution by adopting the action that is in the best interest of British Columbia Lumber as a whole? Explain.

1. ABC company prepared the following contribution format income statement based on a sales volume of 1,000 unites:

a. Calculate contribution margin per unit, contribution margin ratio, and variable expense ratio. (5 points)

b. What would be the percentage increase in net operating income if sales volume increases by 50%? (5 points)

c. If the selling price increases by 10% and sales volume decreases by 10%, what would be the net operating income? (5 points)

d. What would be the break even point in unit sales if variable expenses per unit increases by 8% and fixed expenses increase by 10%? (5 points)

e. What is the margin of safety percentage? At what “percentage of sale volume decrease” the company would experience zero net operating income? (5 points)

This Comprehensive Problem is to acquaint you with the content of the 2015 financial statements of Home Depot, Inc., and related disclosures, excerpts of which are reproduced in Appendix A of this textbook. (The 2015 financial statements are for the fiscal year ended January 31, 2016.) The problem contains three major parts, which are independent of one another: Part I is designed to familiarize you with the general contents of a company’s financial statements; Part II involves analysis of the company’s liquidity; and Part III analyzes the trend in its profitability. If you work this problem as a group assignment, each group member should be prepared to discuss the group’s findings and conclusions in class. A good starting point for understanding the financial statements of a company such as Home Depot, Inc. , is to understand the accounting policies used in preparing those statements. The first note accompanying the financial statements provides a brief description of the major accounting policies the company used. Most of the areas discussed in this note have been covered in this text. Part I Annual reports include not only comparative financial statements but also other sources of information, such as: - A multiyear summary of financial highlights, a summary of key statistics for the past 5 or 10 years. - Several pages of Notes that accompany the financial statements. - Reports by management and by the independent auditors in which they express their respective responsibilities for the financial statements. Instructions: Answer each of the following questions and explain where in the statements, notes, or other sections of the annual report you located the information used in your answer. a. How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors' conclusions concerning these statements? b. Home Depot, Inc., combines its statement of retained earnings with another financial statement. Where are the details about changes in the amount of retained earnings found? c. Over the three years presented, have the company's annual net cash flows been positive or negative from (1) operating activities, (2) investing activities, and (3) financing activities? Has the company's cash balance increased or decreased during each of these three years? Part II Assume that you are the credit manager of a medium-size supplier of building materials and related products. Home Depot wants to make credit purchases from your company, with payment due in 60 days. Instructions: a. As general background read the first note to the financial statements, "Summary of Significant Accounting Policies." Next, compute the following for the fiscal years ending January 31, 2016 and February 1, 2015 (round percentages to the nearest tenth of 1 percent, and other computations to one decimal place): 1. Current ratio. 2. Quick ratio. 3. Amount of working capital 4. Percentage change in working capital from prior year. 5. Percentage change in cash and cash equivalents from the prior year. b. On the basis, of your analysis of your analysis in part a, does the company's liquidity appear to have increased or decreased during the most recent fiscal year? Explain. c. Other than the ability of Home Depot to pay for its purchases, do you see any major considerations that should enter into your company's decision? Explain? d. Your company assigns each customer one of the four credit ratings listed below. Assign a credit rating to Home Depot, Inc., and write a memorandum explaining your decision. (In your opinion memorandum, you may refer to any of your computations or observations in parts a through c, and to any information contained in the annual report.) POSSIBLE CREDIT RATINGS: A. Outstanding. Little or no risk of inability to pay. For customers in this category, we fill any reasonable order without imposing a credit limit. The customer's credit is reevaluated annually. B. Good. Customer has good debt-paying ability but is assigned a credit limit that is reviewed every 90 days. Orders above the credit limit are accepted only on a cash basis. C. Marginal. Customer appears sound, but credit should be extended only on a 30-day basis and with a relatively low credit limit. Creditworthiness and credit limit are reevaluated every 90 days. D. Unacceptable. Customer does not qualify for credit.

Windsor Company began operations on January 2, 2016. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 9 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows.

Windsor Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned.

Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

List of Accounts

Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016 and 2017.

Cumberland County Senior Services is a non-profit organization devoted to providing essential services to seniors who live in their own homes within the Cumberland County area. Three services are provided for seniors—home nursing, Meals on Wheels, and housekeeping. In the home nursing program, nurses visit seniors on a regular basis to check on their general health and to perform tests ordered by their physicians. The Meals on Wheels program delivers a hot meal once a day to each senior enrolled in the program. The housekeeping service provides weekly housecleaning and maintenance services. Data on revenue and expenses for the past year follow:

*Allocated on the basis of program revenues.

     The head administrator of Cumberland County Senior Services, Judith Ewa, is concerned about the organization’s finances and considers the operating income of $6,400 last year to be razor-thin. (Last year’s results were very similar to the results for previous years and are representative of what would be expected in the future.) She feels that the organization should be building its financial reserves at a more rapid rate in order to prepare for the next inevitable recession. After seeing the above report, Ewa asked for more information about the financial advisability of discontinuing the
housekeeping program.

     The depreciation in the housekeeping category is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. Depreciation charges assume zero salvage value. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided.

Required:

1-a. Compute the change in net operating income for the company as a whole if housekeeping program be discontinued.

1-b. Should the housekeeping program be discontinued?

• Yes

• No

2. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services?

• Yes

• No

HELP NEEDED URGENT

The following are the information for Chun Equipment Co. for 2018. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.)

Required

Prepare a multistep income statement and balance sheet for Chun Equipment Co. for 2018.

Prepare a multistep income statement for Chun Equipment Co. for 2018.

Prepare the balance sheet for Chun Equipment Co. for 2018. (Be sure to list the assets in the order of their liquidity.)

In 2019, Bonita Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Bonita had revenues of $20,500 and expenses other than interest and taxes of $6,700 for 2020. (Assume that the tax rate is 20%.) Throughout 2020, 2,200 shares of common stock were outstanding; none of the bonds was converted or redeemed.

(a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)

(b) Assume the same facts as those assumed for part (a), except that the 60 bonds were issued on September 1, 2020 (rather than in 2019), and none have been converted or redeemed. Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)

(c) Assume the same facts as assumed for part (a), except that 20 of the 60 bonds were actually converted on July 1, 2020. Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)

Required information

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

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

Beech’s managers have made the following additional assumptions and estimates:

1. Estimated sales for July, August, September, and October will be $370,000, $390,000, $380,000, and $400,000, respectively.

2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 45% in the month of sale and 55% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

3. Each month’s ending inventory must equal 20% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

4. Monthly selling and administrative expenses are always $50,000. Each month $7,000 of this total amount is depreciation expense and the remaining $43,000 relates to expenses that are paid in the month they are incurred.

5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Required:

1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30.

3. Prepare an income statement for the quarter ended September 30.

4. Prepare a balance sheet as of September 30.

Describe the Sarbanes-Oxley Act. Why was the act enacted? What is the impact? Do you think it will stop accounting corruption? Why or why not?

Writing assignment 500 words (NO PLAGIARIZE). Please help I know nothing about this topic.

Latestech Equipment Ltd operates an equipment rental business. The equipment has an internal computer that enables remote monitoring of usage:

Casual equipment hire at a rate of $25 per machine hour, with a minimum charge of $200 per day, e.g., if a customer hires a machine on Monday, collecting it at 5.00 p.m. and returns it by 5.00 p.m. Tuesday, after using it for 10 machine hours, the customer will be charged $250, but if the customer used the machine for only 4 hours, the charge would be $200, being the minimum daily charge.

 Extended equipment hire agreement for a fixed fee of $12,000 payable in advance, which entitles the customer to the following:

o possession of the equipment for one year

o use of the equipment for up to 500 machine hours

o additional machine hours are charged at $25 per hour.

The equipment has a useful life of five years.Big Plans Ltd is a customer of Latestech Equipment Ltd. Big Plans Ltd entered into an extended equipment hire agreement on 1 March 20X3. The initial payment of $12,000 was debited to Prepayments. The equipment was used for 200 machine hours in the first four months of the extended hire agreement. Big Plans Ltd’s reporting date is 30 June.

a) Identify the relevant facts in relation to the transaction with Latestech Ltd.

b) What is the major accounting policy issue from the perspective of Big Plans Ltd in relation to the extended equipment hire agreement in preparing the financial statements for the year ended 30 June 20X3?

c) List the accounting standards, interpretations and other pronouncements (such as the Conceptual Framework) that are relevant to the accounting problem described in part b). Identify and describe two principles from these pronouncements.

d) The trainee bookkeeper suggests that $12,000 payment should be treated as an expense in the current period. Propose an alternative accounting policy that differs in terms of definition, recognition or measurement from that suggested by the trainee bookkeeper. In this question you are required to describe the policy only. You are not required to evaluate or justify it (save that for part e)

e) Based on the principles you identified in part c) evaluate

i) the policy suggested by the trainee bookkeeper and

ii) the policy that you suggested in part d) f) Recommend a policy.

g) Prepare a note to describe how the extended hire agreement has been accounted for, and disclosing the amount, if any, included in profit or loss in the current period.

Waterway Industries has equipment with a carrying amount of $2510000. The expected future net cash flows from the equipment are $2545000, and its fair value is $2043000. The equipment is expected to be used in operations in the future. What amount (if any) should Waterway report as an impairment to its equipment? No impairment should be reported. $502000. $467000. $35000.

The following is a partial trial balance for General Lighting Corporation as of December 31, 2021:

There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%.

Required:

1. Prepare a single-step income statement for 2021, including EPS disclosures.

2. Prepare a multiple-step income statement for 2021, including EPS disclosures.

Presented below is Oxford Ltd.’s income statement for 20x5:

How many units must Oxford Ltd. sell in order to generate net income equal to $266223?

(2) On one day a man who claimed to be Dr. Bun, of NoTrue WallPaper Ltd., the expert wallpaper, persuaded Harry to buy the wallpaper for interior decoration. Harry bought 100 rolls wallpaper for HK$50,000 for Susan's apartment. He signed a written contract without bothering to read it. The contract said that NoTrue WallPaper Ltd. would have no liability for any defect in the wallpaper. When Harry used the wallpaper, they are wet and cannot put onto the wall. Harry goes back to NoTrue WallPaper Ltd., but it is already shut down. Harry immediately reported to the police and Consumer Council, but he was told that the man who had sold wallpaper to Harry was a rogue pretending to be Dr. Bun. Advice Harry of his legal position.

(3) Harry completes the first stage of the contracted design work. In reliance on the agreed design, Susan is planning to purchase a European L-shaped sofa made in Spain from iFurniture, a furniture company, for HK$25,000. Susan just see the sofa set from iFurniture's catalogue, she says that she would very much like to view the real sofa but that she is out of town on a five-day business trip and will not be able to view it until she returns. The boss of iFurniture, Lucas says that if another buyer comes forward, he will have to sell the sofa to that buyer. Susan says she will pay HK$2,500 if iFurniture promises not to sell the sofa to another buyer for the next five days. Lucas agrees to this. Analyse whether any contract has been made between the parties and, if so, what are its terms? Refer to the relevant case law to support your answer.

(4) Harry completes the contracted design work, but Susan only pays HKS300,000, instead of the HKS500,000 originally agreed. Advise Harry of his legal position.

2. Income statement

The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm’s gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders.

The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm’s revenues and expenses to the period in which they were incurred, not necessarily when cash was received or paid. Investors and analysts use the information given in the income statement and other financial statements and reports to evaluate the company’s financial performance and condition.

Consider the following scenario:

Green Caterpillar Garden Supplies Inc.’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year.

Complete the Year 2 income statement data for Green Caterpillar, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar.

Given the results of the previous income statement calculations, complete the following statements: