Interest Expenses must be included in the cash flow statement using indirect method?If yes, in which column?
In: Accounting
What are some unwritten rules for auditors and accountants who plan to engage in forensic accounting and fraud examination, as relates to evaluating the internal controls.
In: Accounting
No phot or handwriting (managerial accounting)
You are also required to compare the Flexible Budget with your Actual Results showing the Variance in a tabular form.
In: Accounting
No handwriting or photo (tax accounting)
a-Explain the different concepts of income from accounting, economics and taxation perspectives
b-What is the difference between deductions for and deductions from adjusted gross income AGI under US tax law? Give two examples of each deduction
In: Accounting
What are the two most common measures of cash?
A. Cash position and accounts payable
B. Cash (and cash equivalents) and cash flow from operations
C. Accounts receivable and working capital
D. Earnings per share and dividends per share
In: Accounting
No handwriting and photo (managerial accounting)
a-To makes 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
b-Illustrate the concept of ROI with a suitable numerical example. How ROI is different from Residual Income? Explain in your own words
In: Accounting
What does cash on hand measure?
A. The value at which an asset is carried on the company’s financial “books” and shown on the Balance Sheet.
B. The cash generated by a company’s core operations.
C. Highly liquid assets, such as money market funds or government bonds, that are easily converted into cash within 90 days without risk of a change in value.
D. Cash on hand measures the amount of available cash and low-risk, liquid cash-like assets you can convert to cash in 90 days or less.
In: Accounting
No handwriting or photo (tax accounting)
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
In: Accounting
On February 1, 2018, Arrow Construction Company entered into a
three-year construction contract to build a bridge for a price of
$8,075,000. During 2018, costs of $2,030,000 were incurred, with
estimated costs of $4,030,000 yet to be incurred. Billings of
$2,536,000 were sent, and cash collected was $2,280,000.
In 2019, costs incurred were $2,536,000 with remaining costs
estimated to be $3,645,000. 2019 billings were $2,786,000, and
$2,505,000 cash was collected. The project was completed in 2020
after additional costs of $3,830,000 were incurred. The company’s
fiscal year-end is December 31. This project does not qualify for
revenue recognition over time.
Required:
1. Calculate the amount of revenue and gross
profit or loss to be recognized in each of the three years.
2a. Prepare journal entries for 2018 to record the
transactions described (credit "various accounts" for construction
costs incurred).
2b. Prepare journal entries for 2019 to record the
transactions described (credit "various accounts" for construction
costs incurred).
3a. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2018.
3b. Prepare a partial balance sheet to show the
presentation of the project as of December 31, 2019.
In: Accounting
Timmins Company of Emporia, Kansas, spreads herbicides and
applies liquid fertilizer for local farmers. On May 31, 2020, the
company’s Cash account per its general ledger showed a balance of
$6,100.50.
The bank statement from Emporia State Bank on that date showed the
following balance.
| Emporia State Bank | |||||||
| Checks and Debits | Deposits and Credits | Daily Balance | |||||
| XXX | XXX | 5-31 | 7,209.60 | ||||
A comparison of the details on the bank statement with the details
in the Cash account revealed the following facts.
| 1. | The statement included a debit memo of $50 for the printing of additional company checks. | ||
| 2. | Cash sales of $983.36 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $1,043.36. The bank credited Timmins Company for the correct amount. | ||
| 3. | Outstanding checks at May 31 totaled $53.55, and deposits in transit were $1,830.45. | ||
| 4. | On May 18, the company issued check No. 1181 for $671 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Timmins Company for $617. | ||
| 5. | $3,900 was collected by the bank for Timmins Company on May 31 through electronic funds transfer. | ||
| 6. | Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $480 that was incorrectly charged to Timmins Company by the bank. | ||
| 7. |
On May 31, the bank statement showed an NSF charge of $370 for a check issued by Sara Ballard, a customer, to Timmins Company on account. Prepare the bank reconciliation at May 31, 2020. (List items that increase cash balance first.) |
In: Accounting
| 2018 | 2017 | 2016 | 2015 | 2014 | Average | ||
| Sales | A | 4.22% | 2.22% | 2.40% | 6.99% | 3.96% | |
| B | 6.53% | 6.30% | 4.23% | 11.91% | 7.25% | ||
| C | -0.56% | -0.34% | 3.58% | 9.17% | 2.96% | ||
| Gross Profit | A | 4.01% | 3.26% | 3.84% | 5.77% | 4.22% | |
| B | 5.88% | 8.71% | 3.13% | 11.18% | 7.23% | ||
| C | 0.96% | 0.97% | 1.14% | 8.75% | 2.96% | ||
| Net Income | A | -26.02% | 45.85% | 56.18% | 1.17% | 19.30% | |
| B | -23.31% | 78.39% | 4.34% | 9.36% | 17.20% | ||
| C | -8.99% | 0.76% | -2.70% | 5.69% | -1.31% | ||
| Total Assets | A | 2.67% | 9.17% | 1.48% | 6.16% | 4.87% | |
| B | 2.89% | 19.85% | 11.54% | 10.86% | 11.29% | ||
| C | 3.81% | 1.32% | 7.57% | 13.79% | 6.62% | ||
| Total Liabilities/Debt | A | 78.09% | 76.92% | 79.15% | 79.12% | 76.39% | 77.93% |
| B | 76.10% | 77.34% | 80.09% | 77.10% | 76.74% | 77.47% | |
| C | 74.89% | 77.26% | 77.53% | 75.42% | 75.33% | 76.09% | |
| Total Equity | A | 21.91% | 23.08% | 20.85% | 20.88% | 23.61% | 22.07% |
| B | 23.67% | 22.36% | 19.59% | 22.34% | 22.87% | 22.17% | |
| C | 25.11% | 22.74% | 22.74% | 24.58% | 24.67% | 23.97% | |
Make a conclusion about A's performance in comparison to B's and C's
In: Accounting
Consider the following information regarding the performance of a money manager in a recent month. The table presents the actual return of each sector of the manager’s portfolio in column (1), the fraction of the portfolio allocated to each sector in column (2), the benchmark or neutral sector allocations in column (3), and the returns of sector indexes in column (4). (1) Actual Return (2) Actual Weight (3) Benchmark Weight (4) Index Return Equity 2.8% 0.40 0.30 2.9% (S&P 500) Bonds 1.1 0.40 0.50 1.8 (Aggregate Bond Index) Cash 0.9 0.20 0.20 0.9 a-1. What was the manager’s return in the month? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Manager’s return 0.36 % a-2. What was her over or underperformance? (Input the value as positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.) % b. What was the contribution of security selection to relative performance? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Contribution of security selection % c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Contribution of asset allocation %
In: Accounting
Dollar-Value LIFO Retail
Johns Company adopts the dollar-value LIFO retail inventory method on January 1, 2016. The following information for 2016 is obtained from Johns' records:
| Cost | Retail | |
|---|---|---|
| Inventory, January 1, 2016 | $20,000 | $29,000 |
| Purchases | 60,000 | 92,000 |
| Net additional markups | — | 1,000 |
| Net markdowns | — | 3,000 |
| Sales | — | 75,000 |
The price index on January 1, 2016, was 100, and on December 31, 2016, it was 110.
Required:
Compute the cost of the inventory on December 31, 2016. Round the cost-to-retail ratio to three decimal places.
| JOHNS COMPANY | ||
| Calculation of cost of inventory using Dollar-Value LIFO | ||
| December 31, 2016 | ||
| Cost | Retail | |
| Beginning inventory | $20,000 | $29,000 |
| Purchases | 60,000 | $92,000 |
| Add: Markups (net) | 1,000 | |
| Less: Markdowns (net) | (3000) | |
| $90,000 | ||
| Goods available for sale | $80,000 | $119,000 |
| Less: Sales | 75,000 | |
| Ending inventory at retail | $44,000 | |
| Ending inventory at cost | $ ? | |
In: Accounting
Kitchen Magician, Inc. has assembled the following data pertaining to its two most popular products.
| Blender | Electric Mixer | ||||||
| Direct material | $ | 22 | $ | 32 | |||
| Direct labor | 15 | 43 | |||||
| Manufacturing overhead @ $54 per machine hour | 54 | 108 | |||||
| Cost if purchased from an outside supplier | 75 | 146 | |||||
| Annual demand (units) | 38,000 | 45,000 | |||||
Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $27. Kitchen Magician’s management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers.
Required:
If 80,000 machine hours are available, and management desires to follow an optimal strategy, how many units of each product should the firm manufacture? How many units of each product should be purchased?
|
With all other things constant, if management is able to reduce the direct material for an electric mixer to $22 per unit, how many units of each product should be manufactured? Purchased?
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In: Accounting