Max company makes plastic bottles for the coke bottling company. During the month of May Max produced $150,500 bottles for Coke operating at 60% capacity. Max company reported the following results of its operations:

Sales: $7,525,000

Cost of Goods Sold: $4,000,000

Selling, general and Adm. Expenses :$2,000,000

Net income: $1,525,000

Fixed costs for the period were cost of goods Sold $990,000 and selling General and Administration Expenses $43500

For the month of June, Max company has received a special order to produce $80,000 bottles for Pepsi Bottling Company. Variable Selling, General and Administrative Expenses would increase $2 per bottle because the special courier needed for shipping. Variable cost of Goods sold would decrease $0.50 per bottle because Pepsi would supply its own labels.

Fixed Cost of Goods sold would increase $1 per bottle because a special label placing machine would need to be rented for the month. Pepsi its willing to pay $37 per bottle.

What are the relevant revenues?

What are the relevant costs?

If the order is accepted, what is the overall impact on net income?

Should Max accept the special order?

What non-financial factors should Max consider in making its decision?

Define, briefly explain how it works and affect the treasury cash management and give examples of the following:

Cash Concentration

Positive Pay

Liquidity Management

Availability Float

Factoring

Debt risk

Account analysis

Earnings credit rate

Short-term financing

Long-term financing

Average Rate of Return—Cost Savings

Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $104,000 with a $9,000 residual value and a five-year life. The equipment will replace one employee who has an average wage of $33,590 per year. In addition, the equipment will have operating and energy costs of $10,070 per year.

Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent.
%_____________________

1. Washington Corp. (WC) has the capacity to produce 20,000 fax machines per year. WC currently produces and sells 14,000 units per year. The fax machines normally sell for $200 each. Modem Products has offered to buy 4,000 fax machines from WC for $100 each. Unit-level costs associated with manufacturing the fax machines are $50 each for direct labor, $30 each for unit direct materials, and $10 each for unit variable overhead cost. Allocated product-level cost are $12 each and allocated facility-sustaining costs are $16.2 each. Should WC accept the special offer?

   	a.	Reject, profit will decrease by 10,000 if WC accepted this special order.
   	b.	Accept, profit will increase by 440,000 if WC accepted this special order.
   	c.	Reject, profit will decrease by 40,000 if WC accepted this special order.
   	d.	Accept, profit will increase by 40,000 if WC accepted this special order.

Exercise 9-20 Recording Bonds at a Premium and a Discount On January 1, 2012, Hampton, Inc. issues $3,000,000 of 5-year, 10% bonds with interest payable on July 1 and January 1. Hampton prepares financial statements on December 31 and amortizes any discount or premium using the straight-line method. Required: Hide a. Prepare all journal entries necessary in 2012 assuming the bonds were issued at 96. For a compound entries, if an amount box does not require an entry, leave it blank. If required, round to the nearest dollar. b. Prepare all journal entries necessary in 2012 assuming the bonds were issued at 103. For a compound entries, if an amount box does not require an entry, leave it blank. If required, round to the nearest dollar.

No Hand Writing or Pictures (Tax Accounting):

1, Explain the different concepts of income from accounting, economics and taxation perspectives Explain the different concepts of income from accounting, economics and taxation perspectives .

2. What is the difference between deductions for and deductions from adjusted gross income AGI under US tax law? Give two examples of each deduction.

3. To make income taxable, income must be realized and recognized. Explain in your own words the difference between income realization and income recognition, then provide a short numerical example to indicate the difference.

Whirly Corporation’s contribution format income statement for the most recent month is shown below:

Required:

(Consider each case independently):

1. What would be the revised net operating income per month if the sales volume increases by 50 units?

2. What would be the revised net operating income per month if the sales volume decreases by 50 units?

3. What would be the revised net operating income per month if the sales volume is 6,300 units?

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows:

* $3 per unit variable; $254,000 fixed each year.

The company’s $35 unit product cost is computed as follows:

Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.

Production and cost data for the first two years of operatons are:

Required:

1. Using variable costing, what is the unit product cost for both years?

2. What is the variable costing net operating income in Year 1 and in Year 2?

3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

Exercise 19-18 EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options exercised [LO19-5, 19-6, 19-7, 19-8]

On December 31, 2017, Berclair Inc. had 400 million shares of common stock and 8 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 60 million shares of its common stock as treasury stock. Berclair issued a 6% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $400 million.

Also outstanding at December 31 were 45 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2017, for 45 million common shares at an exercise price of $50 per share. During 2018, the market price of the common shares averaged $75 per share.

The options were exercised on September 1, 2018.

Required:

Compute Berclair’s basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

The pretax financial income (or loss) figures for Concord Company are as follows.

Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 20% tax rate for the remaining years.

Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

MS KP MM Corporation is a manufacturer that produces cosmetics. The following information has been taken from the company’s production, sales, and cost records for the just completed year: Production in units 100,000 Sales in units ? Ending finished goods Inventory in units ? Sales in Rupees Rs 2,000,000 Costs : Other selling and administrative expenses Rs 40,000 Other factory overhead costs Rs 22,000 Selling and administrative salaries Rs 240,000 Maintenance Factory Rs 50,000 Utilities factory Rs 60,000 Building Rent (Production Uses 80% of the Space; administrative and sales offices use the rest) Rs 100,000 Royalty paid for use of Production patent, Rs 0.5 per unit produced) ? Rent for special production equipment, Rs 5000 per year plus Rs 0.2 per unit produced) ? Insurance factory equipment Rs 20,000 Cleaning supplies, factory Rs 10,000 Depreciation Factory Rs 18,000 Advertising cost Rs 600,000 Direct labor Rs 80,000 Indirect labor Rs 20,000 Property taxes, factory Rs 10,000 Raw material purchased Rs 200,000 Inventories Beginning of year End of year Finished goods Rs. 0 ? Work in process Rs 50,000 Rs 60,000 Raw materials Rs 20,000 Rs 10,000 The finished goods inventory is being carried at the average unit production cost for the year. The selling price of the product is Rs 32 per unit. Required: A. Prepare a Cost of Goods Manufactured Statement for the year. (2.5 Marks) B. Compute the number of units and cost of units in the finished goods inventory at the end of the year. C. Prepare an Income Statement for the year under Absorption costing Method. (2.5 Marks) D. Compute the following cost: i. Prime cost ii. Conversion cost iii. Inventoriable cost iv. Non-Manufacturing cost E. Prepare T accounts of the following i. Work in process ii. Finished goods

Please Answers urgent and proper. This is my paper matter

30

Paceheco Corporation uses the weighted-average method in its process costing system. The Molding Department is the second department in its production process. The data below summarize the department’s operations in January.

The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $35,358 and a total of $560,054 in conversion costs were incurred in the department during January. The cost per equivalent unit for conversion costs for January in the Molding Department is closest to:

Multiple Choice

• $9.607

• $9.787

• $9.808

• $8.563

ABC Energy Corp. (the “Company”), an SEC registrant, operates three manufacturing facilities in the United States. The Company manufactures various household cleaning products at each facility, which are sold to retail customers. The U.S. government granted the Company emission allowances (EAs) of varying useable years (i.e., the years in which the allowance may be used) to be used between 2015 and 2030. Upon receipt of the EAs, the Company recorded the EAs as intangible assets with a cost basis of zero, in accordance with the Federal Energy Regulatory Commission (FERC) accounting guidance for EAs. The Company has a fiscal year end of December 31.

As background, in an effort to control or reduce the emission of pollutants and greenhouse gases, governing bodies typically issue rights or EAs to entities to emit a specified level of pollutants. Each individual EA has a useable year designation. EAs with the same useable year designation are fungible and can be used by any party to satisfy pollution control obligations. Entities can choose to buy EAs from, and sell EAs to, other entities. Such transactions are typically initiated through a broker. At the end of a compliance period, participating entities are required to either (1) deliver to the governing bodies EAs sufficient to offset the entity's actual emissions or (2) pay a fine. The Company currently emits a significant amount of greenhouse gases because of its antiquated manufacturing facilities. The Company plans to upgrade its facilities in 2024, which will decrease greenhouse gas emissions to a very low level. On the basis of the timing of the upgrade, the Company currently anticipates a need for additional EAs in fiscal years 2020–2024.

However, upon completion of the upgrade, the Company believes it will have excess EAs in fiscal years subsequent to 2024 because of reduced emissions as a result of the upgrade. The Company currently has forecasted the updates to its facilities will cost approximately $15 million. As the Company operates in a capital intensive industry, analysts and investors focus on a number of important ratios and measures, including working capital, capital expenditures, cash flows from operations, and free cash flow. As a result, the board of directors and management provide forward-looking guidance on these ratios and measures and expend great effort managing these results in light of the Company’s operational needs. The Company entered into the following two separate transactions in fiscal year 2020, which will impact the Company’s results as presented in the statement of cash flows, which the Company prepares under the indirect method.

          1. To meet its need for additional EAs in fiscal years 2020–2024, on April 2,         2020, the Company spent $6.5 million to purchase EAs with a useable year of       2023 from XYZ Manufacturing Corp.

2. In an effort to offset the costs of the April 2, 2019, purchase of 2023 EAs, the Company sold EAs with a useable year of 2026 to DEF Chemical Corp. for $5 million.

Required:

1. What is the appropriate classification in the statement of cash flows in the Company’s December 31, 2020, financial statements for its purchase of 2023 EAs from XYZ Manufacturing Corp.?

2. What is the appropriate classification in the statement of cash flows in the Company’s December 31, 2020, financial statements for its sale of 2026 EAs to DEF Chemical Corp.?

3. Should these cash flows be reported at gross amounts or net amounts in the 2020 statement of cash flows?

Be sure to cite appropriate authoritative support for your answer from the Accounting Standards Codification.