In 3-4 paragraphs, explain why it is important to study health care finance specifically, versus business finance in general. What is the difference?

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Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company’s balance sheets and income statement follow.

Additional Information on Year 2017 Transactions

1. Purchased equipment for $36,000 cash.
2. Issued 12,000 shares of common stock for $5 cash per share.
3. Declared and paid $89,000 in cash dividends.

Required:
Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Answer is not complete.

Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows:

Keller has monthly overhead of $10,424, which is divided into the following cost pools:

The company has also compiled the following information about the chosen cost drivers:

Required:
1. Suppose Keller uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.)

2. Calculate the production cost per unit for each of Keller’s products under a traditional costing system.(Round your intermediate calculations and final answers to 2 decimal places.)

3. Calculate Keller’s gross margin per unit for each product under the traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.)

4. Select the appropriate cost driver for each cost pool and calculate the activity rates if Keller wanted to implement an ABC system. (Round your answers to 2 decimal places.)

5. Assuming an ABC system, assign overhead costs to each product based on activity demands.(Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.)

6. Calculate the production cost per unit for each of Keller’s products with an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.)

7. Calculate Keller’s gross margin per unit for each product under an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.)

8. Compare the gross margin per unit of each product under the traditional system and ABC. (Round your answers to 2 decimal places.)

Maintenance cost at high level of activity_________

Y =_____ +______X

Total Factory overhead cost____

The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $10,000 of common stock for cash. Recognized $210,000 of service revenue earned on account. Collected $162,000 from accounts receivable. Paid operating expenses of $125,000. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 1 percent of sales on account. The following transactions apply to Jova for Year 2: Recognized $320,000 of service revenue on account. Collected $335,000 from accounts receivable. Determined that $2,150 of the accounts receivable were uncollectible and wrote them off. Collected $800 of an account that had previously been written off. Paid $205,000 cash for operating expenses. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 0.5 percent of sales on account. Required Complete the following requirements for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2. c. Organize the transaction data in accounts under an accounting equation for each year.

QUESTION 17

1. What is the best description of how assets and liabilities of a subsidiary are shown in consolidation, when the acquirer bought stock in steps, occurring over several years?

   	a.	They are shown based on the book values on the subsidiary’s books
   	b.	They are shown based on fair value as of the latest date stock was acquired, as long as the acquirer has significant influence, adjusted for amortization
   	c.	They are shown based on fair value as of the time the acquirer first obtained significant influence, adjusted for amortization
   	d.	They are shown based on fair value as of the time the acquirer first obtained control, adjusted for amortization

Lady Gaga is 30 and already worried about her future. She wants to make sure that she’ll be able to keep up with the life standard she got used to – at the end of the day, she was born this way and wants to die this way, too. She has couple of goals that she wants to achieve after she retires. First, she wants to be able to withdraw $150,000 each month to cover her clothing and make-up expenses for 15 years after she stops singing and retires at the age of 65. Second, she wants to be able to donate $3,000,000 to St. Jude Children’s Hospital at the age of 75. Lastly, the year she retires, she also wants to buy a house in Honolulu, HI that costs $7,500,000 today, with the price being estimated to increase by 1% each year.
a. If she can earn 15% compounded monthly on her retirement account, how much does she need to deposit into her account each month until retirement to achieve her goals?
b. What if she decides to save $40,000 each month for the first 10 years, then not to save for 15 years, and to go back to saving and investing for the last 10 years before retirement – how much would she then need to save every month for the last 10 years to achieve the same goals?

1. Explain whether past costs play any role in relevant costing decisions.
2. Discuss whether depreciation on an existing asset is always relevant or irrelevant in decision making.
3. Explain whether the salary of the supervisor of an assembly line with excess capacity is an example of relevant or irrelevant future cost for an accept-or-reject decision.
4. Can direct materials ever be irrelevant in a ‘make’ or ‘buy’ decision? Explain.
5. Specific Water Company produces water bottles. It has been asked by a large retail shop to supply water bottles which would be libelled in the name of the retail shop. The retail shop would pay Specific Water Company a price of $25 per bottle. However, its regular price is $26. If Specific Water Company agrees to sell water bottles to the retail shop at a price of $25, what type of relevant costing decision would you call this? Is it possible to make net benefit (earnings) by selling at a price lower than the regular price? What other reasons might motivate to sell at a price below regular price?

Juno Corporation had ordinary taxable income of $167,000 in the current year before consideration of any of the following property transactions. It sold two blocks of stock held for investment. One yielded a short-term capital gain of $8,000 and the other a long-term capital loss of $14,000. In addition, Juno sold four pieces of machinery for $30,000. It purchased the machines three years ago for $80,000 and claimed $35,000 of depreciation deductions. Juno also sold a building for $400,000 that it had purchased fifteen years ago for $390,000. The depreciation deductions up to the date of sale for the building were $108,000.

Determine the amount and character of each gain or loss from the property transactions and Juno Corporation’s taxable income for the current year.

How would your answers to (a) change if Juno were a single individual with no dependents and $14,000 of itemized deductions instead of a corporation?

How would your answers to (b) change if Juno has $550,000 of ordinary taxable income?

1. Subsidiary Company reported the following net income and dividends for the years indicated:

Parent acquired 75% of Subsidiary’s common stock on January 1, 20X6. On that date, the fair value of Sub’s net assets was equal to the book value. Parent uses the equity method in accounting for its ownership in Sub and reported a balance of $259,800 in its investment account on December 31, 20X8.

1. What amount did Parent pay to acquire Subsidiary’s shares?

2. What was the fair value of Sub’s net assets on January 1, 20X6?

3. What amount will be assigned to the NCI shareholders in the consolidated balance sheet prepared at December 31, 20X8?

12.Calculating EACYou are evaluating two different silicon wafer milling machines. The Techron I costs $265,000, has a 3-year life, and has pretax operating costs of $41,000 per year. The Techron II costs $330,000, has a 5-year life, and has pretax operating costs 196 of $52,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $25,000. If your tax rate is 21 percent and your discount rate is 9 percent, compute the EAC for both machines. Which do you prefer? Why?

13.Cost-Cutting ProposalsStarset Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $670,000 is estimated to result in $245,000 in annual pretax cost savings. The press falls in the 5-year MACRS class, and it will have a salvage value at the end of the project of $55,000. The press also requires an initial investment in spare parts inventory of $20,000, along with an additional $2,500 in inventory for each succeeding year of the project. If the shop’s tax rate is 23 percent and the discount rate is 8 percent, should the company buy and install the machine press?

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The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 25,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $60,100 consisted of $44,800 of direct materials costs and $15,300 of conversion costs.

During the month, the forming department started 300,000 units. At the end of the month, the forming department had 30,000 units in ending inventory, 80% complete as to materials and 30% complete as to conversion. Units completed in the forming department are transferred to the painting department.

Cost information for the forming department is as follows:

Assume that Fields uses the FIFO method of process costing.

1. Calculate the equivalent units of production for the forming department.

2. Calculate the costs per equivalent unit of production for the forming department. (Round your answers to 2 decimal places.)

The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $10,000 of common stock for cash. Recognized $210,000 of service revenue earned on account. Collected $162,000 from accounts receivable. Paid operating expenses of $125,000. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 1 percent of sales on account. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Year 1.

a._____ T or F  Certificates of deposit,commercial paper and U.S. Treasury Bills with original maturity of 3 months or less are examples of highly liquid investments and are classified as cash equivalents. (if false, identify and correct error)

b. _____ T or F  Depreciation expense reduces operating income in the Income Statement, but does not require the use of cash. It is reported in the Statement of Cash Flow, within the Financing Activities section, as a separately stated item: addition to net income (if false, identify and correct error)