Required information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 92,500 $ 69,000 Accounts receivable, net 102,500 76,000 Inventory 88,800 124,000 Prepaid expenses 6,900 10,400 Total current assets 290,700 279,400 Equipment 149,000 140,000 Accum. depreciation—Equipment (39,500 ) (21,500 ) Total assets $ 400,200 $ 397,900 Liabilities and Equity Accounts payable $ 50,000 $ 67,500 Wages payable 8,500 20,000 Income taxes payable 5,900 8,800 Total current liabilities 64,400 96,300 Notes payable (long term) 55,000 85,000 Total liabilities 119,400 181,300 Equity Common stock, $5 par value 270,000 185,000 Retained earnings 10,800 31,600 Total liabilities and equity $ 400,200 $ 397,900 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales $ 803,000 Cost of goods sold 436,000 Gross profit 367,000 Operating expenses Depreciation expense $ 83,600 Other expenses 92,000 Total operating expenses 175,600 191,400 Other gains (losses) Gain on sale of equipment 4,500 Income before taxes 195,900 Income taxes expense 46,390 Net income $ 149,510 Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $82,600 cash. Received cash for the sale of equipment that had cost $73,600, yielding a $4,500 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit. rev: 12_05_2017_QC_CS-111198 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017.

Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $178,000. The appraised fair market value of the warehouse was $105,750, and the appraised value of the land was $199,750

a.) What is Bob’s basis in the warehouse and in the land?

b.) What would be Bob’s basis in the warehouse and in the land if the appraised value of the warehouse is $90,750, and the appraised value of the land is $214,750?

c.) Which appraisal would Bob likely prefer?

• Appraised value in part (a)

• Appraised value in part (b)

Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventories:

The following additional information describes the company’s manufacturing activities for June:

1. Compute the (a) cost of products transferred from weaving to sewing, (b) cost of products transferred from sewing to finished goods, and (c) cost of goods sold.
2. Prepare journal entries dated June 30 to record (a) goods transferred from weaving to sewing, (b) goods transferred from sewing to finished goods, and (c) sale of finished goods.

Stuart Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail, Inc. Never-Fail is a multimillion-dollar company started by Wes Never immediately after he failed to finish his first accounting course. The company’s motto is “We Never-Fail to Deliver Your Package on Time.” When Never-Fail has more freight than it can deliver, it pays Stuart to carry the excess. Stuart contracts with independent pilots to fly its planes on a per-trip basis. Stuart recently purchased an airplane that cost the company $6,375,000. The plane has an estimated useful life of 25,500,000 miles and a zero salvage value. During the first week in January, Stuart flew two trips. The first trip was a round trip flight from Chicago to San Francisco, for which Stuart paid $260 for the pilot and $210 for fuel. The second flight was a round trip from Chicago to New York. For this trip, it paid $210 for the pilot and $105 for fuel. The round trip between Chicago and San Francisco is approximately 4,600 miles and the round trip between Chicago and New York is 1,400 miles.

Required

1. Select if the costs mentioned below are direct or indirect.

2. Determine the total cost of each trip.

Total cost: Chicago to San Francisco

Chicago to NY

Intermediate Accounting II

1. United Health Group leased a life support machine on January 1, 2018, for a three-year period ending December 31, 2020. The lease agreement specified annual payments of $144,000 beginning with the first payment at the beginning of the lease, and each December 31 through 2019. The company had the option to purchase the machine on December 30, 2020, for $180,000 when its fair value was expected to be $240,000, a sufficient difference that exercise seems reasonably certain. The machine's estimated useful life was six years with no salvage value. United Health was aware that the lessor's implicit rate of return was 12%.

Required:

Round your answers to the nearest whole dollar amounts.

1.          Calculate the amount United Health should record as a right-of-use asset and lease liability for this finance lease.
2.          Prepare the appropriate journal entries for United Health from the beginning of the lease through the second payment (12/31/18).

Make or Buy

Smith Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:

Direct materials                            $ 1

Direct labor                                     10

Variable overhead                             5

Fixed overhead                                 8

Total                                              $24

Funkhouser Company has contacted Smith with an offer to sell it 5,000 of the subassemblies for $20 each. If Funkhouser makes the subassemblies, $5 of the fixed overhead per unit will be allocated to other products.

Required:

a.   Should Smith make or buy the subassemblies? Explain your answer. What would be the impact on Net Income? (Make table)

b.   What if Smith could rent the space currently used to manufacture the subassemblies for $15,000. What should they do now? What is the impact on Net Income? (Make table)

c.   What other factors should Smith consider in making this decision?

Grant Company leased machinery to Tim Company on July 1, 2015, for a ten-year period expiring June 30, 2025. Equal annual payments under the lease are $150,000 and are due on July 1 of each year. The first payment was made on July 1, 2013. The rate of interest used by Grant and Tim is 9%. The cash selling price of the machinery is $1,050,000 and the cost of the machinery on Grant's accounting records was $930,000. Prepare all of Grant's 2015 journal entries to this lease assuming that it is defined as a sales-type lease.

The ledger of Cheyenne Corp. on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared.

An analysis of the accounts shows the following.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

in context to internationalization of business explain the concept of franchising and strategic alliances

The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:

The income statement for the year ended December 31, 20Y6, is as follows:

Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows:

1. Equipment and land were acquired for cash.
2. There were no disposals of equipment during the year.
3. The investments were sold for $64,410 cash.
4. The common stock was issued for cash.
5. There was a $17,000 debit to Retained Earnings for cash dividends declared.

Required:

Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Intermediate Accounting II

On January 1, 2018, Duncan-Lang Services, Inc. a computer software training firm, leased several computers under a two-year operating lease agreement from Neble Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $40,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by Neble at a cost of $360,000 and were expected to have a useful life of five years with no residual value. Appropriate adjusting entries are recorded at the end of each quarter.

Required: Prepare the appropriate journal entries for both (a) the lessee and (b) the lessor from the beginning of the lease through the end of 2018. Round your answers to the nearest whole dollar amounts.

Towing Company has budgeted sales for the next six months as follows: Sales for Cash Sales on Account May $42,000 $257,000 June $37,000 $243,000 July $29,000 $238,000 August $48,000 $251,000 September $52,000 $269,000 October $45,000 $263,000 On average, 32% of the sales on account are collected in the month of sale, 40% are collected in the month following sale, 16% are collected in the second month following sale, 9% are collected in the third month following sale, and the remaining 3% is collected four months after the month of sale. Calculate Towing Company's budgeted accounts receivable at October 31.

Decision Making and relevant factors:

You have an opportunity to choose a flight for your upcoming spring break trip to Hawaii. After a lot of thought and research, you have narrowed your options to four different flights. If there are no delays, each should you to your destination on time. It is important to arrive on tim, since you have to meet a but at a specific time to take you and other students to your final destination. If any of the flights are late, arranging for alternative transportation will be difficult. Basic info. About each flight is as follow:

What are the relevant factors affecting your choice of flight? Explain.

Southside Company manufactures three products from a common input in a joint processing operation. What is the financial advantage (disadvantage) of further processing each of the products beyond the split off point.  Round each answer to the nearest whole dollar and include the $ sign and any necessary commas. Only answers in this format will be accepted.

Product Selling Price Annual Output

A $6 / lb 1,000 lbs

B $8 / lb 3,000 lbs

C $5 / gal 2,000 gallons

Further Processing requires no special facilities. Additional costs and selling price are given below:

Product Additional Processing Costs Selling Price

A $13,000 $20 / lb

B $80,000 $13 / lb

C $63,000 $32 / gal

Product A additional CM =

Product A additional cost =

Product A Advantage/Disadvantage =

Product A sell or process further =

Product B additional CM =

Product B additional cost =

Product B Advantage/Disadvantage =

Product B sell or process further =

Product C additional CM =

Product C additional cost =

Product C Advantage/Disadvantage =

Product C sell or process further =

Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $256,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 3 years, and it requires a 8% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the table provided.)

Required:
1. Determine the payback period for this investment.
2. Determine the break-even time for this investment.
3. Determine the net present value for this investment.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)

• Required 1
• Required 2

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)

• Required 1
• Required 2

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)

• Required 1
• Required 2

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.)

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

Determine the net present value for this investment.

• Required 2
• Required 3