Why is it important for a company to maintain a good record-keeping systems?

As a tax planner your ethical responsibility is to advise a company about the business records they need to keep as it ensure a sound audit trail. List the business records that you would advise the company to keep.

Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $216,000 in additional credit sales, 14 percent are likely to be uncollectible. The company will also incur $16,400 in additional collection expense. Production and marketing costs represent 72 percent of sales. The firm is in a 20 percent tax bracket and has a receivables turnover of five times. No other asset buildup will be required to service the new customers. The firm has a 8 percent desired return.  



b-2. Calculate the return on incremental investment if 17 percent of the new sales prove to be uncollectible. (Input your answer as a percent rounded to 2 decimal places.)
  

     

b-3. Should credit be extended if 17 percent of the new sales prove uncollectible?
  

  

c-1. Calculate the return on incremental investment if the receivables turnover drops to 1.6, and 14 percent of the accounts are uncollectible. (Input your answer as a percent rounded to 2 decimal places.)
  

   

c-2. Should credit be extended if the receivables turnover drops to 1.6, and 14 percent of the accounts are uncollectible?
  

Mears Production Company makes several products and sells them for an average price of $90. Mears' accountant is considering two different approaches to estimating the firm's total monthly cost function, 1) account analysis, and 2) high-low. In both cases, she used units of production as the independent variable. For the account analysis approach, she developed the cost function by analyzing each cost item in June, when production was 1,550 units. The following are the results of that analysis:

For the high-low method, she developed the cost function using the data from June above and data from August, when production was 2,350 units and total costs were $41,263.

After developing the two cost functions, the accountant used them to make predictions for the month of December, when production was expected to be 1,725 units.

REQUIRED [ROUND UNIT COSTS TO THE NEAREST CENT AND TOTAL COSTS TO THE NEAREST DOLLAR.]

Part A (5 tries; 5 points)
1. Using account analysis, what was the accountant's estimate of total fixed costs for December?   

2. Using account analysis, what was the accountant's estimate of total variable costs for December? (This is the main one I need help with)

Part B (5 tries; 5 points)
1. Using the high-low method, what was the accountant's estimate of total fixed costs for December?   

2. Using the high-low method, what was the accountant's estimate of variable costs per unit for December?   

Kaune Food Products Company manufactures canned mixed nuts with an average manufacturing cost of $50 per case (a case contains 24 cans of nuts). Kaune sold 158,000 cases last year to the following three classes of customer:

The supermarkets require special labeling on each can costing $0.03 per can. They order through electronic data interchange (EDI), which costs Kaune about $56,000 annually in operating expenses and depreciation. Kaune delivers the nuts to the stores and stocks them on the shelves. This distribution costs $41,000 per year.

The small grocers order in smaller lots that require special picking and packing in the factory; the special handling adds $20 to the cost of each case sold. Sales commissions to the independent jobbers who sell Kaune products to the grocers average 6 percent of sales. Bad debts expense amounts to 7 percent of sales.

Convenience stores also require special handling that costs $25 per case. In addition, Kaune is required to co-pay advertising costs with the convenience stores at a cost of $18,000 per year. Frequent stops are made to each convenience store by Kaune delivery trucks at a cost of $30,000 per year.

Required:

1. Calculate the total cost per case for each of the three customer classes. Round intermediate calculations and final answers to four decimal places. Use the rounded values for subsequent requirements.

2. Using the costs from Requirement 1, calculate the profit per case per customer class. Round intermediate computations to four decimal places and final answers to two decimal places.

Does the cost analysis support the charging of different prices?

3. What if Kaune charged the average price per case to all customer classes? How would that affect the profit percentages?

Which of the following is/are true about FUTA obligations? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

• FUTA is subject to a 5.4 percent reduction based on employer and state factors.unanswered
• FUTA applies to all companies.unanswered
• FUTA is subject to a $7,000 wage base per employee.unanswered
• FUTA is an employer-only tax.

Write a report for a university tutor describing the production process.

Advise the financial management strategies the business followed that assisted optimum tax position?

As an accountant what organisational policy and procedures you must follow in relation to the preparation of tax documents of a company ?

As a part of the document management process what would you do to ensure that your tax return satisfies the compliance requirements?

Based on your finding above what is the BAS lodgement due dates of a company ?

Explain one type of stock or hybrid (something between debt and stock) debt/equity security that a company uses to generate capital (you are addressing stock from the standpoint of equity, not as an investment).  Do not include basic common or preferred stock.  Variants of these are permitted though.  Note no duplication is allowed.  If you post a similar security as another student, credit will be given to the person who first posts.  Be sure to indicate accounting treatment, advantages & disadvantages of the security to each the issuer and the investor. 

Explain one type of bond to the group.  Examples (all usable, but no duplication) are junk bonds, mortgage bonds, bonds with sinking funds, equipment trust certificate, debentures, etc.  What advantages and disadvantages to each the issuer and the investor?

Cost of Goods Sold Budget

Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 23,400 barrels of oil for purchase in June for $70 per barrel. Direct labor budgeted in the chemical process was $180,200 for June. Factory overhead was budgeted at $294,800 during June. The inventories on June 1 were estimated to be:

The desired inventories on June 30 were:

Use the preceding information to prepare a cost of goods sold budget for June. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Key learnings - Perform research and reflect upon what happened to include some ideas or recommendations on what could have been done to reduce the severity and global impact of the 2008 crisis. Consider some key risks and related impact. Consider who was responsible, or who should have been more responsible (i.e. financial institutions, government, central banks, households, businesses).

Krepps Corporation produces a single product. Last year, Krepps manufactured 27,540 units and sold 22,200 units. Production costs for the year were as follows:

Sales totaled $1,098,900 for the year, variable selling and administrative expenses totaled $115,440, and fixed selling and administrative expenses totaled $176,256. There was no beginning inventory. Assume that direct labor is a variable cost.

Under variable costing, the company's net operating income for the year would be:

The following data relate to direct materials costs for February:

Materials cost per yard: standard, $1.90; actual, $2.05
Standard yards per unit: standard, 4.69 yards; actual, 5.05 yards
Units of production: 9,500

Calculate the direct materials price variance.

a.$6,683.25 favorable

b.$1,425.00 unfavorable

c.$7,196.25 favorable

d.$7,196.25 unfavorable

Payroll may seem like an easy area to review however there are many items to review for this function. Please share your thoughts on auditing payroll and payroll accruals, etc. How would you approach this and what are specific areas/items you would want to verify?