Prepare a bank reconciliation for Blue Moon Company dated June 30, 2011 3.) Prepare any necessary journal entries based on the following data regarding the bank reconciliation prepared by Bootlegger Company on February 28, 2011. a) Outstanding cheques amount to $650. b) The service charges for February amount to $40. c) Cheque #665 for $3,525 for the cash purchase of office equipment was erroneously recorded by the bookkeeper as $3,552 d) The bank erroneously credited Bootlegger Company’s account for $300 for a deposit made by Bootlegger Company. e) A deposit ticket correctly prepared for $975 appeared on the bank statement as a deposit for $795 f) Cheque #650 for $100 for utilities expense was erroneously recorded by the bookkeeper as $10. g) A customer’s cheque for $250 was returned with the bank statement and stamped NSF. h) Bank balance on Feb.28 was $20,671 i) Cash account showed a balance of $20,254 on Feb. 28
In: Accounting
Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 80,000 direct-labor hours as follows:
| Standard costs per unit (one box of paper): | |||
| Variable overhead (3 direct-labor hours @ $4) | $ | 12 | |
| Fixed overhead (3 direct-labor hours @ $12) | 36 | ||
| Total | $ | 48 | |
During April, 26,000 units were scheduled for production: however, only 20,000 units were actually produced. The following data relate to April.
Actual direct-labor cost incurred was $1,425,000 for 75,000 actual hours of work.
Actual overhead incurred totaled $1,372,500, of which $472,500 was variable and $900,000 was fixed.
Required:
Prepare two exhibits similar to Exhibit 11-6 and Exhibit 11-8, which show the following variances. State whether each variance is favorable or unfavorable, where appropriate.
Variable-overhead spending variance.
Variable-overhead efficiency variance.
Fixed-overhead budget variance.
Fixed-overhead volume variance.
Variable-Overhead Spending and Efficiency Variances. (Select "None" and enter "0" for no effect (i.e., zero variance). Round "Actual Rate" and "Standard Rate" to 2 decimal places.)
| Variable-Overhead Spending And Efficiency Variances | |||||||||||||||||||
| (Hours = Direct-Labor Hours) | |||||||||||||||||||
| (1) | (2) | (3) | (4) | ||||||||||||||||
| Actual Variable Overhead | Projected Variable Overhead | Flexible Budget: Variable Overhead | Variable Overhead Applied To Work-In-Process | ||||||||||||||||
| Actual Qty (AQ) | × | Actual Rate (AVR) | Actual Qty (AQ) | × | Standard Rate (SVR) | Standard Allowed Qty (SQ) | × | Standard Rate (SVR) | Standard Allowed Qty (SQ) | × | Standard Rate (SVR) | ||||||||
| × | × | × | × | ||||||||||||||||
| hours | per hour | hours | per hour | hours | per hour | hours | per hour | ||||||||||||
| Variable-overhead spending variance | Variable-overhead efficiency variance | No difference | |||||||||||||||||
In: Accounting
How do audit committees provide balance? What issues may arise from them? What characteristics should a person on an audit committee have?
In: Accounting
On February 1, 2018, Wolf Inc. issued 10% bonds dated February 1, 2018, with a face amount of $200,000. The bonds sold for $239,588 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Wolf's fiscal year is the calendar year. Wolf uses the effective interest method of amortization.
Required:
1. Prepare the journal entry to record the bond issuance on February 1, 2018.
2. Prepare the entry to record interest on July 31, 2018.
3. Prepare the necessary journal entry on December 31, 2018.
4. Prepare the necessary journal entry on January 31, 2019.
In: Accounting
Purple Company acquired 80 percent of Silver Company's outstanding common stock for $592,000 on January 1, 20X7. On the date of acquisition, the book value and fair value of Silver Company's net assets were equal. Purple Company uses the equity method to account for investments. Trial balance data for Purple and Silver as of January 1, 20X7 are as follows:
| Purple Company | Silver Company | |
|
Assets: Cash |
218,000 |
50,000 |
| Receivables | 130,000 | 74,000 |
| Inventory | 250,000 | 174,000 |
| Investment in Silver Company | 592,000 | |
| Land | 560,000 | 250,000 |
| Depreciable Assets | 1,750,000 | 500,000 |
| Accumulated Depreciation | -1,000,000 | -48,000 |
| Total Assets | 2,500,000 | 1 ,000,000 |
| Liabilities & Stockholders' Equity | ||
| Accounts Payable | 190,000 | 60,000 |
| Bonds Payable | 500,000 | 200,000 |
| Common Stock | 1,250,000 | 500,000 |
| Retained Earnings | 560,000 | 240,000 |
| Total Liabilities & Equity | 2,500,000 | 1,000,000 |
Immediately after acquisition, the consolidation worksheet was completed with all of the appropriate elimination entries (including pre-acquisition accumulated depreciation). The last column of the worksheet showing the consolidated totals has been left blank. Fill in the consolidated totals and identify the account marked with a "?" that will be included on the consolidated balance sheet.
In: Accounting
The City of Ashville operates an internal service fund to provide garage space and repairs for all city-owned-and-operated vehicles. The Central Garage Fund’s preclosing trial balance for the current fiscal year is as follows:
| Debits | Credits | |||||||||
| Cash | $ | 121,100 | ||||||||
| Due from Other Funds | 10,200 | |||||||||
| Inventory of Supplies | 99,000 | |||||||||
| Land | 54,500 | |||||||||
| Building | 275,500 | |||||||||
| Allowance for Depreciation—Building | $ | 22,100 | ||||||||
| Machinery and Equipment | 71,900 | |||||||||
| Allowance for Depreciation—Machinery and Equipment | 13,200 | |||||||||
| Vouchers Payable | 34,000 | |||||||||
| Net Position—Net Investment in Capital Assets | 366,600 | |||||||||
| Net Position—Unrestricted | 196,300 | |||||||||
| $ | 632,200 | $ | 632,200 | |||||||
The following information, not yet reflected in the preclosing figures above, applies to the current fiscal year:
| General Fund | $ | 297,000 | |
| Special Revenue Fund | 139,600 | ||
7. Unpaid interfund receivable balances were as follows:
| Beginning of Year | End of Year | |||||||
| General Fund | $ | 2,800 | $ | 3,300 | ||||
| Special Revenue Fund | 7,400 | 10,200 | ||||||
8. Vouchers payable at year-end were $17,500.
9. Closing entries were prepared for the Central Garage Fund (ignore government-wide closing entry).
Prepare a statement of revenues, expenses, and changes in fund net position for the Central Garage Fund for the period.
In: Accounting
Think about someone you know has thought about having a business. It does not matter a recent thing or a long time ago. The important thing is that you need to identify the following: 1. Do a SWAT analysis for the person's idea ( or your idea) 2. Define the Business Model and target market. 3. Do an analysis of the person (entrepreneur's) personality in relation to commitment, and all the qualities that may be key to take one's ideas to reality. 4. With this information do a recommendation for this idea from the view point of a "Small Business Consultant"stating first steps to follow and value proposition of your services to coach someone through grounding their ideas. Minimum 5 pages.
In: Accounting
Analyzing, Forecasting, and Interpreting Both Income Statement
and Balance Sheet
Following are the income statements and balance sheets of General
Mills, Inc.
| Income Statement, Fiscal Years Ended ($ millions) |
May 29, 2011 | May 30, 2010 |
|---|---|---|
| Net Sales | $ 14,880.2 | $ 14,635.6 |
| Cost of sales | 8,926.7 | 8,835.4 |
| Selling, general and administrative expenses | 3,192.0 | 3,162.7 |
| Divestitures (gain), net | (17.4) | -- |
| Restructuring, impairment, and other exit costs | 4.4 | 31.4 |
| Operating income | 2,774.5 | 2,606.1 |
| Interest, net | 346.3 | 401.6 |
| Earnings before income tax expense and equity in income of affiliates | 2,428.2 | 2,204.5 |
| Income tax expense | 721.1 | 771.2 |
| After-tax earnings from joint ventures | 96.4 | 101.7 |
| Net earnings including noncontrolling interests | 1,803.5 | 1,535.0 |
| Net earnings attributable to noncontrolling interests | 5.2 | 4.5 |
| Net earnings attributable to General Mills | $ 1,798.3 | $ 1,530.5 |
| Balance Sheet ($ millions) |
May 29, 2011 | May 30, 2010 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $ 619.6 | $ 673.2 |
| Receivables | 1,162.3 | 1,041.6 |
| Inventories | 1,609.3 | 1,344.0 |
| Deferred income taxes | 27.3 | 42.7 |
| Prepaid expenses and other current assets | 483.5 | 378.5 |
| Total current assets | 3,902.0 | 3,480.0 |
| Land, buildings and equipment | 3,345.9 | 3,127.7 |
| Goodwill | 6,750.8 | 6,592.8 |
| Other intangible assets | 3,813.3 | 3,715.0 |
| Other assets | 862.5 | 763.4 |
| Total assets | $ 18,674.5 | $ 17,678.9 |
| Liabilities and Equity | ||
| Accounts payable | $ 995.1 | $ 849.5 |
| Current portion of long-term debt | 1,031.3 | 107.3 |
| Notes payable | 311.3 | 1,050.1 |
| Other current liabilities | 1,321.5 | 1,762.2 |
| Total current liabilities | 3,659.2 | 3,769.1 |
| Long-term debt | 5,542.5 | 5,268.5 |
| Deferred income taxes | 1,127.4 | 874.6 |
| Other liabilities | 1,733.2 | 2,118.7 |
| Total liabilities | 12,062.3 | 12,030.9 |
| Stockholders' equity | ||
| Common stock, 754.6 shares issued, $0.10 par value | 75.5 | 75.5 |
| Additional paid-in capital | 1,319.8 | 1,307.1 |
| Retained earnings | 9,191.3 | 8,122.4 |
| Common stock in treasury, at cost, shares of 109.8 and 98.1 | (3,210.3) | (2,615.2) |
| Accumulated other comprehensive loss | (1,010.8) | (1,486.9) |
| Total shareholders' equity | 6,365.5 | 5,402.9 |
| Noncontrolling interests | 246.7 | 245.1 |
| Total equity | 6,612.2 | 5,648.0 |
| Total Liabilities and Equity | $ 18,674.5 | $ 17,678.9 |
Forecast General Mill's fiscal 2012 income statement using the following relations (assume "no change" for accounts not listed). Assume that depreciation and amortization expense is included as part of selling, general and administrative expense ($ millions).
| Net sales growth | 4.0% |
| Cost of sales/Net sales | 60.0% |
| Selling, general and administrative expenses/Net sales | 21.5% |
| Divestitures (gain), net | $-- |
| Restructuring, impairment, and other exit costs | $-- |
| Interest, net | $346.3 |
| Income tax expense/Pretax income | 29.7% |
| After-tax earnings from joint ventures | $96.4 |
| Net earnings attributable to noncontrolling interests/Net earnings before attribution | 0.5% |
Round answers one decimal place.
Do not use negative signs with your answers.
| Income Statement, Fiscal Years Ended ($ millions) | 2012 Estimated |
|---|---|
| Net sales | $Answer
Correct |
| Cost of goods sold | Answer
Correct |
| Selling, general and administrative expenses | Answer
Correct |
| Divestitures (gain), net | Answer
Correct |
| Restructuring, impairment, and other exit costs | Answer
Correct |
| Operating income | Answer
Correct |
| Interest expense | Answer
Correct |
| Earnings before income tax expense and equity in income of affiliates | Answer
Correct |
| Income tax expense | Answer
Correct |
| Equity in income of affiliates | Answer
Correct |
| Net earnings including noncontrolling interests | Answer
Correct |
| Net earnings attributable to noncontrolling interests | Answer
Correct |
| Net earnings attributable to General Mills | $Answer
Correct |
Forecast General Mill's fiscal 2012 balance sheet using the following relations (assume "no change" for accounts not listed). Assume that all capital expenditures are purchases of land, building and equipment, net. ($ millions).
| Receivables/Net sales | 7.8% |
| Inventories/Net sales | 10.8% |
| Deferred income tax/Net sales | 0.2% |
| Prepaid expenses and other current assets/Net sales | 3.2% |
| Other intangible assets | $0 amortization |
| Other Assets/Net sales | 5.8% |
| Accounts payable/Net sales | 6.7% |
| Other current liabilities/Net sales | 8.9% |
| Current portion of long-term debt | $733.6 |
| Deferred income taxes/Net sales | 7.6% |
| Other liabilities/Net sales | 11.6% |
| Noncontrolling interests | * |
| Capital expenditures/Net sales | 4.4% |
| Depreciation/Prior year net PPE | 20.7% |
| Dividends/Net income | 40.6% |
| Current maturities of long-term debt in fiscal 2013 | $733.6 |
| *increase by net income attributable to noncontrolling interests and assume no dividends |
Round answers one decimal place.
Do not use negative signs with your answers.
| Balance Sheet ($ millions) |
2012 Estimated |
|---|---|
| Assets | |
| Cash and cash equivalents | $Answer
Incorrect |
| Receivables | Answer
Correct |
| Inventories | Answer
Correct |
| Deferred income taxes | Answer
Correct |
| Prepaid expenses and other | Answer
Correct |
| Total current assets | Answer
Incorrect |
| Land, buildings, and equipment | Answer
Incorrect |
| Goodwill | Answer
Incorrect |
| Other intangible assets | Answer
Incorrect |
| Other assets | Answer
Correct |
| Total assets | $Answer
Incorrect |
| Liabilities and equity | |
| Accounts payable | $Answer
Correct |
| Current portion of long-term debt | Answer
Correct |
| Notes payable | Answer
Incorrect |
| Other current liabilities | Answer
Correct |
| Total current liabilities | Answer
Incorrect |
| Total long-term debt | Answer
Incorrect |
| Deferred income taxes | Answer
Correct |
| Other liabilities | Answer
Correct |
| Total liabilities | Answer
Incorrect |
| Stockholders equity | |
| Common stock | Answer
Incorrect |
| Additional paid-in capital | Answer
Incorrect |
| Retained earnings | Answer
Incorrect |
| Common stock in treasury | Answer
Incorrect |
| Accumulated other comprehensive loss | Answer
Incorrect |
| Total shareholders' equity | Answer
Incorrect |
| Noncontrolling interests | Answer
Incorrect |
| Total equity | Answer
Incorrect |
| Total liabilities and Equity | $ Answer
Incorrect |
In: Accounting
Following are the financial statements of Target Corporation from its FY2015 annual report.
| Target Corporation | ||||
|---|---|---|---|---|
| Consolidated Statements of Operations | ||||
| 12 Months Ended | ||||
| $millions | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
| Sales | 76,785 | 72,618 | 71,279 | |
| Cost of sales | 54,133 | 51,278 | 50,039 | |
| Gross margin | 22,652 | 21,340 | 21,240 | |
| Selling, general and administrative expenses | 15,280 | 14,676 | 14,465 | |
| Depreciation and amortization | 2,213 | 2,129 | 1,996 | |
| Gain on sale | (620) | - | (319) | |
| Earnings from continuing operations before interest expense & income taxes | 5,779 | 4,535 | 5,170 | |
| Net interest expense | 607 | 882 | 1,049 | |
| Earnings from continuing operations before income taxes | 5,172 | 3,653 | 4,121 | |
| Provision for income taxes | 1,681 | 1,204 | 1,427 | |
| Net earnings from continuing operations | 3,491 | 2,449 | 2,694 | |
| Discontinued operations, net of tax | 42 | (4,085) | (723) | |
| Net earnings (loss) | 3,533 | (1,636) | 1,971 | |
| Target Corporation | |||
|---|---|---|---|
| Consolidated Statements of Financial Position | |||
| $millions | Jan. 30, 2016 | Jan. 31, 2015 | |
| Assets | |||
| Cash and cash equivalents, inc. short-term investments of $3,008 and $1,520 | $4,046 | $2,210 | |
| Inventory | 8,601 | 8,282 | |
| Assets of discontinued operations | 322 | 1,058 | |
| Other current assets | 1,161 | 2,074 | |
| Total current assets | 14,130 | 13,624 | |
| Property and equipment, net | 25,817 | 25,952 | |
| Noncurrent assets of discontinued operations | 75 | 717 | |
| Other noncurrent assets | 840 | 879 | |
| Total assets | $40,862 | $41,172 | |
| Liabilities and Shareholders' investment | |||
| Accounts payable | $7,418 | $7,759 | |
| Accrued expenses and other current liabilities | 4,236 | 3,783 | |
| Current portion of LT debt and other borrowings | 815 | 91 | |
| Liabilities of discontinued operations | 153 | 103 | |
| Total current liabilities | 12,622 | 11,736 | |
| Long-term debt and other borrowings | 11,945 | 12,634 | |
| Deferred income taxes | 823 | 1,160 | |
| Noncurrent liabilities of discontinued operations | 18 | 193 | |
| Other noncurrent liabilities | 1,897 | 1,452 | |
| Total noncurrent liabilities | 14,683 | 15,439 | |
| Shareholders' investment | |||
| Common stock | 50 | 53 | |
| Additional paid-in-capital | 5,348 | 4,899 | |
| Retained earnings | 8,788 | 9,644 | |
| Accumulated other comprehensive loss | |||
| Pension and other benefit liabilities | (588) | (561) | |
| Currency translation adjustment and cash flow hedges | (41) | (38) | |
| Total shareholders' investment | 13,557 | 13,997 | |
| Total liabilities and shareholders' investment | $40,862 | $41,172 | |
We forecast Target's income statement using the following forecast assumptions for both years:
| Sales (growth rate) | 10% |
| Cost of sales/Sales | 70.5% |
| Selling, general and administrative expenses/Sales | 19.9% |
| Depreciation and amortization (% of prior year PPE, net) | 8.4% |
| Net interest expense | No change |
| Provisions for income taxes/Pretax income | 32.5% |
| Assume Target disposes of the net assets from discontinued operations (assets less liabilities) in FY2016 for proceeds of $350 million. | |
Instructions: Forecast Target's fiscal year ended 2016 and 2017 income statements.
Hint: Forecasted FY2016 gain on sale is computed as proceeds from the disposal of net assets from discontinued operations minus net assets from discontinued operations ($350 million - $226 million). Forecast $0 for gain on sale in FY2017.
| Target Corporation | |||
|---|---|---|---|
| Consolidated Statements of Operations | |||
| $ millions | FY2016 Est. | FY2017 Est. | |
| Sales | $Answer
Mark 0.00 out of 1.00 |
$Answer
Mark 0.00 out of 1.00 |
|
| Cost of sales | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Gross margin | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Selling, general and administrative expenses | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Depreciation and amortization | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Gain on sale | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 1.00 out of 1.00 |
|
| Earnings from continuing operations before interest and tax | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Net interest expense | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Earnings from continuing operations before tax | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Provisions for income taxes | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Net earnings | $Answer
Mark 0.00 out of 1.00 |
$Answer
Mark 0.00 out of 1.00 |
|
We forecast Target's financials using the following forecast assumptions for both year:
| Inventory/Sales | 11.7% |
| Other current assets/Sales | 1.6% |
| Other noncurrent assets/Sales | 1.1% |
| Accounts payable/Sales | 10.1% |
| Accrued and other current liabilities/Sales | 5.7% |
| Deferred income taxes/Sales | 1.1% |
| Other noncurrent liabilities/Sales | 2.6% |
| CAPEX/Sales | 1.90% |
| Dividends/Net income | 40.5% |
| Common stock | No change |
| Additional paid-in capital | No change |
| Accumulated other comprehensive loss | No change |
| Current Maturities L-T Debt for 2016 | $751 |
| Current Maturities L-T Debt for 2017 | $2,251 |
| Current Maturities L-T Debt for 2018 | $201 |
|
Assume Target buys back common stock at $2,000 million in FY2016 and retires the stock. (Hint: Retained earnings are reduced by the cost of the stock buy back.) No stock buybacks happen in FY2017. |
|
Instructions: Forecast Target's fiscal year ended 2016 and 2017 balance sheets.
| Target Corporation | |||
|---|---|---|---|
| Consolidated Statements of Financial Position | |||
| $ millions | FY2016 Est. | FY2017 Est. | |
| Assets | |||
| Cash and cash equivalents, inc. short-term investments | $Answer
Mark 0.00 out of 1.00 |
$Answer
Mark 0.00 out of 1.00 |
|
| Inventory | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Other current assets | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Total current assets | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Property and equipment, net | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Other noncurrent assets | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Total assets | $Answer
Mark 0.00 out of 1.00 |
$Answer
Mark 0.00 out of 1.00 |
|
| Liabilities and Shareholders' investment | |||
| Accounts payable | $Answer
Mark 0.00 out of 1.00 |
$Answer
Mark 0.00 out of 1.00 |
|
| Accrued expenses and other current liabilities | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Current portion of LT debt and other borrowings | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Total current liabilities | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Long-term debt and other borrowings | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Deferred income taxes | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Other noncurrent liabilities | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Total noncurrent liabilities | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Shareholders' investment | |||
| Common stock | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Additional paid-in capital | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Retained earnings | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Accumulated other comprehensive loss | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Total shareholders' investment | Answer
Mark 0.00 out of 1.00 |
Answer
Mark 0.00 out of 1.00 |
|
| Total liabilities and shareholders' investment | $Answer
Mark 0.00 out of 1.00 |
$Answer
Mark 0.00 out of 1.00 |
|
In: Accounting
Question text
Reformulating Allowance for Doubtful Accounts and Bad Debt Expense
Merck & Company reported the following from its 2016 financial statements.
| $ millions | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|
| Accounts receivable, net | $7,189 | $6,631 | $6,489 | $7,019 | |
| Allowance for doubtful accounts | 149 | 156 | 168 | 199 |
a. Compute accounts receivable gross for each year.
| $ millions | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|
| Accounts receivable, gross | $Answer
Correct |
$Answer
Correct |
$Answer
Correct |
$Answer
Correct |
b. Determine the percentage of allowance to gross account
receivables for each year.
Round answers to two decimal places (ex: 0.02345 = 2.35%).
| 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|
| % allowance | Answer
Correct |
Answer
Correct |
Answer
Correct |
Answer
Correct |
c. Assume that we want to reformulate the balance sheet and income
statement to reflect a constant percentage of allowance to gross
accounts receivables for each year. Compute the four-year average
and then reformulate the balance sheet and income statements for
each of the four years. Follow the process shown in Analyst
Adjustments 5.2 and assume a tax rate of 35%.
Four- year average of percentage of allowance to gross accounts receivables.
Round answer to two decimal places (ex: 0.02345 = 2.35%)
Answer
Correct
The correct answer is: 2.4
Mark 1.00 out of 1.00
%
Reformulate the balance sheet and income statements.
Use rounded answer above for computations, then round answers to one decimal place.
Use negative signs with answers to indicate the adjustment decreases an account.
| 2013 | 2014 | 2015 | 2016 | ||
|---|---|---|---|---|---|
| Adjusted allowance for doubtful accts. | $Answer
Correct |
$Answer
Correct |
$Answer
Correct |
$Answer
Correct |
|
| Balance Sheets Adjustments | |||||
| Allowance for doubtful accounts | Answer
Correct |
Answer
Incorrect |
Answer
Incorrect |
Answer
Correct |
|
| Accounts receivable, net | Answer
Correct |
Answer
Incorrect |
Answer
Incorrect |
Answer
Correct |
|
| Deferred tax liabilities | Answer
Correct |
Answer
Incorrect |
Answer
Incorrect |
Answer
Correct |
|
| Retained Earnings | Answer
Correct |
Answer
Incorrect |
Answer
Incorrect |
Answer
Correct |
|
| Income Statements Adjustments | |||||
| Bad debts expense | Answer
Correct |
Answer
Incorrect |
Answer
Incorrect |
Answer
Incorrect |
|
| Income tax expense at 35% | Answer
Correct |
Answer
Incorrect |
Answer
Incorrect |
Answer
Incorrect |
|
| Net Income | Answer
Correct |
Answer
Incorrect |
Answer
Incorrect |
Answer
Incorrect |
In: Accounting
|
Mountain Industries operates a Manufacturing Division and an Assembly Division. Both divisions are evaluated as profit centers. Assembly buys components from Manufacturing and assembles them for sale. Manufacturing sells many components to third parties in addition to Assembly. Selected data from the two operations follow: |
| Manufacturing | Assembly | |
| Capacity (units) | 215000 | 115000 |
| Sales price * | $ 108 | $ 375 |
| Variable costs† | $ 48 | $ 150 |
| Fixed costs | $ 10150000 | $ 6150000 |
|
* For Manufacturing, this is the price to third parties. |
|
† For Assembly, this does not include the transfer price paid to Manufacturing. |
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Required: 1. Current production levels in Manufacturing are 115000 units. Assembly requests an additional 21500 units to produce a special order. What transfer price would you recommend? Enter your answer as whole dollars. Do not enter $ or commas. |
2. Suppose Manufacturing is operating at full capacity when Assembly requests an additional 21500 units to produce a special order. What transfer price would you recommend?
3. Suppose Manufacturing is operating at 205000 units when Assembly requests an additional 21500 units to produce a special order. What transfer price would you recommend?
In: Accounting
Cornell Corporation manufactures faucets. Several weeks ago, the firm received a special-order inquiry from Yale, Inc. Yale desires to market a faucet similar to Cornell's model no. 55 and has offered to purchase 3,000 units. The following data are available:
• Cost data for Cornell's model no. 55 faucet: direct materials, $48; direct labor, $30 (2 hours at $15 per hour); and manufacturing overhead, $70 (2 hours at $35 per hour).
• The normal selling price of model no. 55 is $180; however, Yale has offered Cornell only $124 because of the large quantity it is willing to purchase.
• Yale requires a modification of the design that will allow a $7 reduction in direct-material cost.
• Cornell's production supervisor notes that the company will incur $6,433 in additional set-up costs and will have to purchase an $21,700 special device to manufacture these units. The device will be discarded once the special order is completed.
• Total manufacturing overhead costs are applied to production based on direct labor hours. Total budgeted overhead is $840,000. This figure is based on budgeted yearly fixed overhead of $624,000, a budgeted variable overhead of $216,000, and a budgeted activity level of 24,000 direct labor hours.
• Cornell will allocate $8,000 of existing fixed administrative costs to the order as “…part of the cost of doing business.
” Required: A. One of Cornell's staff accountants wants to reject the special order because “financially, it's a loser.” Do you agree with this conclusion if Cornell currently has excess capacity? Show calculations to determine the incremental profit or loss on this special order to support your answer.
B.If Cornell currently has no excess capacity, should the order be rejected? (Assume for part B that Cornell cannot acquire excess capacity via overtime or any other way.) Briefly explain.
In: Accounting
Review Apple Inc.'s financial statements in 2018 10K form and write two paragraphs about Apple's horizontal financial analysis.
In: Accounting
The PC Supply manufactures memory cards that sell to wholesalers for $2.00 each. Variable and fixed costs are as follows: Variable Costs per card Fixed Costs per Month Manufacturing Direct materials $0.30 Direct labor 0.25 Factory overhead 0.25 0.80 Factory overhead $4,000 Selling and admin. 0.15 Selling and admin. 3,000 Total $0.95 Total $7,000 PC Supply produced and sold 10,000 cards during October 2010. There were no beginning or ending inventories.
a. Prepare a contribution income statement for the month of October.
b. Determine PC Supply’s monthly break-even point in units.
c. Determine the effect on monthly profit of a 1,100 unit increase in monthly sales.
d. If PC Supply is subject to an income tax of 28 percent, determine the dollar sales volume is required to earn a monthly after-tax profit of $22,000.
In: Accounting
La Femme Accessories Inc. produces women's handbags. The cost of producing 1,180 handbags is as follows:
| Direct materials | $15,500 |
| Direct labor | 8,400 |
| Factory overhead | 6,400 |
| Total manufacturing cost | $30,300 |
The selling and administrative expenses are $27,400. The management desires a profit equal to 18% of invested assets of $498,000.
If required, round your answers to nearest whole number.
a. Determine the amount of desired profit from
the production and sale of 1,180 handbags.
$
b. Determine the product cost per unit for the
production of 1,180 handbags.
$per unit
c. Determine the product cost markup percentage
for handbags.
%
d. Determine the selling price of handbags. Round your answers to nearest whole value.
| Cost | $per unit |
| Markup | $per unit |
| Selling price | $per unit |
In: Accounting