1. Management makes many judgements and estimates in preparing accounts, some of which will have a significant effect on the reported results and financial position. Give examples of estimates and assumptions could be reported in consolidated financial statements.

The receivables allowance reduces the reported trade receivables balance to reflect uncertainties over collectability. Explain the concept of allowances for irrecoverable receivable and describes the allowances for receivables information which could be given in annual report.

3-IAS 16 Property, Plant and Equipment sets out the requirements for the recognition of the assets, the determination of their carrying amounts, and the depreciation charges and impairment losses in relation to them. Discuss the importance of two models under IAS 16 PPE and Identify the depreciation methods

1-A stakeholder is a party that has an interest in a company and can either affect or be affected by the business. Discuss at least two types of stakeholder

1. PEST analysis (political, economic, socio-cultural and technological) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Give examples and discuss the impact of each of the elements in the PEST analysis

Fuji Limited (“Fuji”) manufactures and sells dairy products made of soya beans. One of its main business is supplying packaged doufu to supermarket chains in Hong Kong. The sales and cost data of package doufu are as follows:
Unit selling price $20
Unit variable cost $10
Total fixed cost $200,000
Breakeven sales $400,000 or 20,000 units
Average monthly sales 30,000 units
Fuji’s raw material supplier has just announced a price increase in soya beans due to severe supply shortage. The higher cost is expected to increase the variable cost of packaged doufu by $3 per unit.
The Management is considering the following two independent options:
1 Increase unit selling price by $3 and sales volume is expected to decrease by 15%.
2 Invest in a new machine to semi-automate the production process; this will reduce the existing variable costs by 15%, increase the fixed cost by 30% and increased both the sales volume and selling price by 5%.
Required:
a Prepare a cost-volume-profit (CVP) income statement for each of the option.
b Based on your answer in (a), advise the management which option is a better choice. Explain your answers.

Lamplighter Company, the lessor, agrees to lease equipment to Tilson Company, the lessee, beginning January 1, 2016. The lease terms, provisions, and related events are as follows:

Required:

selling price implied by the lease is $148443.65.

I need help with the boxes that don't have green check marks in them.

Turner Ltd has determined that its construction division is a cash-generating unit (CGU). The carrying amounts of the net assets for this division as at 300/6/18 are as follows:

- Land has afir value less cost of disposal of 250 000 (as at 30/6/18)

- was determined on 30/6/18 that the CGU's fair value less cost of disposal was 896 000 and its value in use 912 000.

- at 30/6/19, Turner Ltd, because of a reversal of the indicators leading to the impairment, assessed the recoverable amount of the CGU to be 70 000 more than the carrying amount of the unit. As a result, Turner Ltd recognised a reversal of the impairment loss.

- As at 30/6/18, prior to impairment, depreciation was charged on the machinery at 45 000 p.a. and on the buildings at 15 000 p.a. After impairment, the new depreciaton was revised to 33 000 p.a. for the machinery and 25 000 p.a. for the buildings.

- The land has a fair value less costs of disposal of 280 000 (as at 30/6/19)

a) provide the appropriate journal entry for Turner ltd in relation to the impairment testing on 30/6/18. show all workings and calculations

b) provide the appropriate journal entry for Turner ltd in relation to the impairment reversal on 30/6/19. show all workings and calculations

The following information is available for the preparation of the government-wide financial statements for the City of Northern Pines for the year ended June 30, 2017:

From the previous information, prepare a Statement of Activities for the City of Northern Pines for the year ended June 30, 2017. Northern Pines has no component units. (Negative amounts should be indicated by a minus sign).

11-30 Relevant Cost Exercises Each of the following situations is independent:
a. Make or Buy Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Walters
is considering an offer from a subcontractor to provide 2,000 units of product OP89 for $120,000.
If Terry does not purchase these parts from the subcontractor, it must continue to produce them
in-house with these costs:

Cost per Unit
Direct materials $28
Direct labor 18
Variable overhead 16
Allocated fixed overhead 4

Required
1. What is the relevant cost (per unit, rounded to 2 decimal places) to make the product internally?
2. What is the estimated increase or decrease in short-term operating profit of producing the product
internally versus purchasing the product from a supplier? (Round your answer to nearest whole dollar.)
3. What strategic considerations likely bear on this make-vs.-buy decision?

b. Disposal of Assets A company has an inventory of 2,000 different parts for a line of cars that
has been discontinued. The net book value (NBV) of this inventory is $50,000. The parts can be
either re-machined at a total additional cost of $25,000 and then sold for $30,000, or the parts can
be sold as-is for $2,500.
Required What should the company do? Include both financial and strategic considerations.

c. Asset Replacement An uninsured boat costing $90,000 was wrecked the first day it was used.
It can be either sold as-is for $9,000 cash and replaced with a similar boat costing $92,000 or
rebuilt for $75,000 and be brand new as far as operating characteristics and looks are concerned.

Required What should be done? Include a consideration of both financial and strategic factors.

d. Profit from Processing Further Deaton Corporation manufactures products A, B, and C from
a joint process. Joint costs are allocated on the basis of relative sales value of the products at the
split-off point. Additional information for Deaton Corporation follows:

A B C Total
Units produced 12,000 8,000 4,000 24,000
Joint costs $144,000 $ 60,000 $36,000 $240,000
Sales value before additional processing 240,000 100,000 60,000 . 400,000
Additional costs for further processing 28,000 20,000 12,000 60,000
Sales value if processed further 280,000 120,000 . 70,000 470,000
Final PDF to printer

Required
1. Define the following terms: joint production process, joint production costs, separable processing costs,
and split-off point.
2. What is the impact on short-term operating income of processing each of the three products (A, B,
and C) beyond the split-off point? Round each answer to nearest whole dollar.
3. Why do accountants allocate joint/common costs to individual products in a joint manufacturing process?

e. Make vs. Buy (Sourcing Decision) Eggers Company needs 20,000 units of a part to use in
producing one of its products. If Eggers buys the part from McMillan Company for $90 instead
of making it, Eggers will not use the released facilities in another manufacturing activity.
Forty percent of the fixed overhead will continue irrespective of CEO Donald Mickey’s decision.
The cost data are as follows:

Cost to make the part:
Direct materials $35
Direct labor 16
Variable overhead 24
Fixed overhead . 20
$95

Required
1. Determine which alternative is more attractive to Eggers, and by what amount.
2. What strategic factors might bear upon the ultimate decision?

f. Short-Term Product-Mix Decision DVD Production Company produces two basic types of
video games, Flash and Clash. Pertinent data for DVD Production Company follow:

*Based on direct labor hours: 4 direct labor hours (DLHs) per unit of Flash and 2 DLHs per
unit of Clash.

Flash Clash
Sales price $250 $140
Costs
Direct materials 50 . 25
Direct labor (@ $25/hr.) 100 50
Variable factory overhead* 50 25
Fixed factory overhead* 20 10
Marketing costs (all fixed) 10 10
Total costs $230 $120
Operating profit $ 20 $ 20

The DVD game craze is at its height so that either Flash or Clash alone can be sold to keep the plant
operating at full capacity. However, labor capacity in the plant is insufficient to meet the combined
demand for both games. Flash and Clash are processed through the same production departments.
Required
1. What is the meaning and importance of the statement that “Flash and Clash are processed through the
same production departments”?
2. Which of the two products should be produced? Briefly explain your answer.

g. Special-Order Pricing Barry’s Bar-B-Que is a popular lunch time spot. Barry is conscientious
about the quality of his meals, and he has a regular crowd of 600 patrons for his $5 lunch. His variable
cost for each meal is about $2, and he figures his fixed costs, on a daily basis, are about $1,200. From
time to time, bus-tour groups with 50 patrons stop by. He has welcomed them because he has capacity
to seat 700 diners in the average lunch period, and his cooking and wait staff can easily handle the
additional load. The tour operator generally pays for the entire group on a single check to save the wait
staff and cashier the additional time. Due to competitive conditions in the tour business, the operator
is now asking Barry to lower the price to $3.50 per meal for each of the 50 bus-tour members.
Required
1. What is the incremental profit (loss) per bus-tour meal? Should Barry accept the bus-tour offer?
2. What if the tour company were willing to guarantee 200 patrons (or four bus loads) at least once a month
for $3.00 per meal? What is the incremental profit (loss) for each meal? Is the offer financially attractive?

o As a financial accountant, determine the best type of income statement a retailer should use. Defend your suggestion.

o Analyze the different inventory valuation methods discussed in the textbook. Based on your analysis, recommend the most accurate valuation method that reflects current economic conditions. Provide a rationale for your recommendation.

Patrick and Lydia are a couple with their daughter Nina, who has just turned 2. They live in Norfolk. Lydia has been working part-time after her maternity leave (20 hours per week) and could carry on doing so until Nina is in primary school. However, Lydia is reconsidering and is looking into going back to a full-time job now rather than in 3 years’ time. Patrick is a full-time librarian and works 40 hours per week. Nina currently attends a nursery part-time (25h per week) for £125 per week (paid for all 52 weeks). She would attend nursery full-time for double the price if Lydia took the full-time job (at 40 hours per week). Lydia currently earns £8,600 per year (same amount after income tax and national insurance) and Patrick, £20,000 (£17,135.84 after tax and national insurance). If Lydia takes the full-time job (which involves changing role), her gross earnings will increase to £18,000 (£15,775.84 after tax and national insurance). Lydia also receives child benefit for Nina, equating to £1076.40 per year.

2.1 Using the Tax credit calculator, calculate the couple’s total tax credit entitlement and their net household income after childcare costs in each option.

2.2 Explain which option is more favourable in the short-term and what factors contribute to this being the case.

A department has an initial markup of 64%. Planned sales for April are $10,000 and $12,000 for May. The desired stock-to-sales ratio for April is 7.0 and 6.5 for May. Planned markdowns for April are $3,000, and $4,000 for May. Calculate the planned April purchases at retail and at cost.

I already know the answers just need to know how to get there.

Answers= $21,000 at retail, $7560 at cost

Jennson ltd manufactures one product only. the car model T6, the standard cost of which the following

Direct Material 16 ,Direct Labour 8 ,Variable Production Overhead 8 ,Fixed Production Overhead 10 , Total cost = 42

The fixed production overhead figure per unit has been based on a budgeted normal output of 30,000 units per annum It is expected that fixed overheads are incurred evenly over the year The actual fixed production overheads for July were £34,000. Selling, distribution and administration expenses are:

Variable 10% of the sales value - Fixed £240,000 per annum

The selling price is £70 per unit and in July the number of units produced and sold were

Units Production 3.000

Sales 2.400

There were no opening stocks in July.

You are required to: (a) Prepare profit statements for July using: Variable (marginal) costing and Absorption costing

(b) Present a reconciliation of the profit figures in your answer to (a) and explain the reasons for any differences between the two profit statements

Comparative balance sheet accounts of Pina Company are presented below. PINA COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances 2017 2016 Cash $69,500 $50,900 Accounts Receivable 153,400 131,000 Inventory 75,300 60,900 Debt investments (available-for-sale) 54,800 85,600 Equipment 70,300 48,300 Buildings 143,900 143,900 Land 40,000 24,900 Totals $607,200 $545,500 Credit Balances Allowance for Doubtful Accounts $10,100 $7,900 Accumulated Depreciation—Equipment 20,800 14,000 Accumulated Depreciation—Buildings 36,900 27,700 Accounts Payable 66,500 59,600 Income Taxes Payable 11,900 10,100 Long-Term Notes Payable 62,000 70,000 Common Stock 310,000 260,000 Retained Earnings 89,000 96,200 Totals $607,200 $545,500

Additional data: 1. Equipment that cost $10,000 and was 60% depreciated was sold in 2017. 2. Cash dividends were declared and paid during the year. 3. Common stock was issued in exchange for land. 4. Investments that cost $34,700 were sold during the year. 5. There were no write-offs of uncollectible accounts during the year. Pina’s 2017 income statement is as follows. Sales revenue $946,900 Less: Cost of goods sold 602,300 Gross profit 344,600 Less: Operating expenses (includes depreciation expense and bad debt expense) 248,400 Income from operations 96,200 Other revenues and expenses Gain on sale of investments $14,900 Loss on sale of equipment (3,000 ) 11,900 Income before taxes 108,100 Income taxes 45,100 Net income $63,000

(a) Compute net cash provided by operating activities under the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net cash flow from operating activities $

(b) Prepare a statement of cash flows using the indirect method.