Identify a company that has implemented, Lean and report a significant quantitative measure of improvement.

Identify a company that has implemented, Six Sigma and report a significant quantitative measure of improvement.

Identify a company that has implemented, Lean Six Sigma and report a significant quantitative measure of improvement.

E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3 Skip to question [The following information applies to the questions displayed below.] Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost Inventory, December 31, prior year 2,800 $ 13 For the current year: Purchase, April 11 8,960 14 Purchase, June 1 7,850 19 Sales ($52 each) 10,960 Operating expenses (excluding income tax expense) $ 189,000 E7-7 Part 2 2. Compute the difference between the pretax income and the ending inventory amount for the two cases.

1) A business purchases equipment in exchange for a note payable. This transaction results in

A) a debit to Notes Payable and a credit to Equipment B) an increase in liabilities C) no journal entry because no cash has been paid D) a debit to Equipment and a credit to Accounts Payable

2) Accumulated Depreciation is a(n) ________ account and carries a normal ________ balance.

A) liability; credit B) revenue; debit C) contra asset; credit D) expense; debit

3) Anthony Delivery Service has a weekly payroll of $35,000. December 31 falls on Tuesday and Anthony will pay its employees the following Monday (January 6) for the previous full week. Assume that Anthony has a five-day workweek and has an unadjusted balance in Salaries Expense of $885,000 at December 31. What is the December 31 balance of Salaries Expense after adjusting entries are recorded and posted?

A) $920,000 B) $906,000 C) $899,000 D) $885,000

4) The balances of select accounts of McMurray, Inc. as of December 31, 2018 are given below:
Notes Payable Nshort-term $1,300 Salaries Payable 3,000 Notes Payable Nlong-term 24,000 Accounts Payable 3,300 Unearned Revenue 1,000 Interest Payable 2,400
The Unearned Revenue is the amount of cash received for services to be rendered in January 2019. Interest Payable will be paid on February 5, 2019. What are the total long-term liabilities shown on the balance sheet at December 31, 2018?

A) $4,300 B) $24,000 C) $1,300 D) $3,000

5) A merchandiser reports sales revenue of $25,000 and sales discounts forfeited of $1,500. The merchandiser uses a perpetual inventory system. The first entry in the closing process would include _____.

A) a debit to Income Summary for $25,000 B) a debit to Income Summary for $26,500 C) a credit to Income Summary for $26,500 D) a credit to Income Summary for $25,000

6) Which of the following inventory valuation methods should be used for unique items?

A) first-in, first-out B) weighted-average C) specific identification D) last-in, first-out

nswer the following questions:

1. The launch of a new product is under consideration. Its unit variable costs will be £30 and it is estimated that incremental fixed costs of £250,000 will be incurred if production is commenced. Forecast sales are 50,000 units. At what level of price for the new product will the organisation break even? If the actual planned selling price is £48 per unit, what will be the organisation’s margin of safety?
   
2. The following information is about two organisations, A and B.

• Which firm has higher operating gearing?
• What is the expected net income of both firms?
• What would expected net income be for both firms if sales were a) 140,000 units and b) 180,000 units?
• Which firm is facing more risk in terms of its current sales predictions?

Be sure to demonstrate your numerical workings.

The net income reported on the income statement of CamilloX Inc. for the current year was $150,000. Depreciation recorded on equipment and building amounted to $45,000 for the year.  Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Safe Inc. is a service firm that sells home security systems, which it installs and maintains. After the sales force makes initial contact with a new customer and completes the sale, setting up the new service requires two processes: (1) a home visit where the equipment is physically installed and (2) the remote connection from off-site at corporate headquarters. Given the different levels of skill and work required, Safe Inc. tracks costs separately for the Installation and Connection processes. Nevertheless, given the relative simplicity of these processes, Safe Inc. tracks them both on a single product cost report with one direct materials category for the equipment and two conversion cost categories for installation and connection services. Assume that all home installations are completed the same day they are started. After installation, there is sometimes a delay of up to two days before the remote connection is completed. However, in the ideal situation, both the home installation and connection are completed on the same day. What is Safe Inc.’s ending Cost of Contracts Completed and Incomplete Contracts for July, assuming it uses the FIFO costing method? Page 2 * The sales team closed 2,050 new security contracts during July. * Safe Inc. pays its suppliers $400, on average, to purchase one security system. However, the price experiences some variation due to fluctuations in suppliers cost of raw materials. * On average, the installation of each system requires approximately 3 labor hours and establishing and testing the connection requires 2 labor hours. However, Safe Inc. does encounter some variation across employees. * Labor and overhead costs for installation is approximately $20/hour. * Labor and overhead costs for connection costs approximately $35/hour. * Assume that the contracts outstanding at the beginning of July include $1,206 for equipment and $179 of installation costs. * Also assume that Safe Inc. actually incurs $816,270 for new equipment installed during July plus $119,652 of installation costs and $147,825 of connection-related costs. * At the beginning of July, Safe Inc. had 95 incomplete sales contracts. Of these incomplete contracts, 92 were awaiting both installation and connection and 3 had been installed but were still awaiting connection. * At the end of July, Safe Inc. had 120 incomplete sales contracts. Of these incomplete contracts, 114 jobs were awaiting both installation and connection and 6 jobs had been installed but were still awaiting connection.

2019 (Adjustment a) Dec. 31 Uncollectible Accounts Expense 4,290.00 Allowance for Doubtful Accounts 4,290.00 To record estimated loss from Uncollectible accounts based on 0.6% of net credit sales, $715,000 (Adjustment b) 31 Supplies Expense 3,700.00 Supplies 3,700.00 To record supplies used during the year (Adjustment c) 31 Insurance Expense 1,050.00 Prepaid Insurance 1,050.00 To record expired insurance on 1-year $4,200 policy purchased on Oct. 1 (Adjustment d) 31 Depreciation. Exp.—Store Equipment 13,300.00 Accum. Depreciation—Store Equip. 13,300.00 To record depreciation (Adjustment e) 31 Salaries Expense—Office 1,800.00 Salaries Payable 1,800.00 To record accrued salaries for Dec. 29–31 (Adjustment f) 31 Payroll Taxes Expense 137.70 Social Security Tax Payable 111.60 Medicare Tax Payable 26.10 To record accrued payroll taxes on accrued salaries: social security, 6.2% × 1,800 = $111.60; Medicare, 1.45% × 1,800 = $26.10 (Adjustment g) 31 Interest Expense 100.00 Interest Payable 100.00 To record accrued interest on a 4-month, 6% trade note payable dated Nov. 1: $10,000 × 0.06 × 2/12 = $100.00 (Adjustment h) 31 Interest Receivable 234.00 Interest Income 234.00 To record interest earned on 6-month, 8% note receivable dated Oct. 1: $7,800 × 0.12 × 3/12 = $234.00

Examine the above adjusting entries and determine which ones should be reversed. Show the reversing entries that should be recorded in the general journal as of January 1, 2020. (Record the entries in the order given. Round your answers to 2 decimal places.

The children's department of a major department store had $615,000 in merchandise at the beginning of the year During the year, $836,000 purchases were made. Assuming the yearend inventory was $573,200, what is the cost of goods sold? What was the total amount of merchandise available for sale?

According to the results, compare and contrast the cost elements associated with a retailer (or service-based business) and a manufacturer? What additional product costs must be recognized within a manufacturer? What additional factors must be recognized by a company that uses a JIT inventory system?

Net Present Value Method

The following data are accumulated by Paxton Company in evaluating the purchase of $98,100 of equipment, having a four-year useful life:

a. Assuming that the desired rate of return is 10%, determine the net present value for the proposal. Use the table of the present value of $1 presented above. If required, round to the nearest dollar. If required, use the minus sign to indicate a negative net present value.

b. Would management be likely to look with favor on the proposal? Yes or No

The net present value indicates that the return on the proposal is __________  than the minimum desired rate of return of 10%.

PIEPKORN MANUFACTURING WORKING CAPITAL MANAGEMENT, PART 1

You have recently been hired by Piepkorn Manufacturing to work in its newly established treasury department. Piepkorn Manufacturing is a small company that produces cardboard boxes in a variety of sizes. Gary Piepkorn, the owner of the company, works primarily in the sales and production areas. Currently, the company puts all receivables in one shoe box and all payables in another. Because of the disorganized system, the finance area needs work, and that's what you've been brought in to do. The company currently has a cash balance of $154,000 and plans to purchase new box folding machinery in the fourth quarter at a cost of $325,000. The purchase of the machinery will be made with cash because of the discount offered. The company's policy is to maintain a target cash balance of $100,000. All sales are in cash and all purchases are made on credit. Gary Piepkorn has projected the following gross sales for each of the next four quarters:

Gross sales for the first quarter of next year are projected at $908,000. Piepkorn typically orders 50 percent of next quarter's projected gross sales in the current quarter, and suppliers are typically paid in 53 days. Wages, taxes, and other costs run about 30 percent of gross sales. The company has a quarterly interest payment of $115,000 on its long-term debt. The company uses a local bank for its short-term financial needs. It pays 1.5 percent per quarter on all short-term borrowing and maintains a money market account that pays 1 percent per quarter on all short-term deposits. Gary has asked you to prepare a cash budget and short-term financial plan for the company under the current policies. He has also asked you to prepare additional plans based on changes in several inputs.

QUESTIONS

a. Use the numbers given to complete the cash budget and short-term financial plan.

b. Rework the cash budget and short-term financial plan assuming Piepkorn changes to a target balance of $80,000.

The Dawg corporation owns 13% of Company A and 23% of Company B. Dividends received from Company A were $104,000 and from Company B were $243,000. If Dawg's "adjusted" taxable income is $2,000,000, calculate Dawg's taxable income after including the dividend information.

Problem 20-6

Indigo Inc. has sponsored a noncontributory, defined benefit pension plan for its employees since 1994. Prior to 2017, cumulative net pension expense recognized equaled cumulative contributions to the plan. Other relevant information about the pension plan on January 1, 2017, is as follows.

1. The company has 200 employees. All these employees are expected to receive benefits under the plan. The average remaining service life per employee is 12 years.

2. The projected benefit obligation amounted to $4,952,000 and the fair value of pension plan assets was $3,032,000. The market-related asset value was also $3,032,000. Unrecognized prior service cost was $1,920,000.

On December 31, 2017, the projected benefit obligation and the accumulated benefit obligation were $4,907,000 and $4,064,000, respectively. The fair value of the pension plan assets amounted to $4,133,000 at the end of the year. A 10% settlement rate and a 10% expected asset return rate were used in the actuarial present value computations in the pension plan. The present value of benefits attributed by the pension benefit formula to employee service in 2017 amounted to $201,000. The employer’s contribution to the plan assets amounted to $762,000 in 2017. This problem assumes no payment of pension benefits.

Prepare a schedule, based on the average remaining life per employee, showing the prior service cost that would be amortized as a component of pension expense for 2017, 2018, and 2019. Compute pension expense for the year 2017. Compute pension expense for the year 2017.

Prepare the journal entries required to report the accounting for the company’s pension plan for 2017.

Required information

Schedules of Expected Cash Collections and Disbursements; Income Statement; Balance Sheet [LO8-2, LO8-4, LO8-9, LO8-10]

[The following information applies to the questions displayed below.]

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

Exercise 8-12

Beech’s managers have made the following additional assumptions and estimates:

1. Estimated sales for July, August, September, and October will be $250,000, $270,000, $260,000, and $280,000, respectively.

2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

3. Each month’s ending inventory must equal 30% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

4. Monthly selling and administrative expenses are always $46,000. Each month $5,000 of this total amount is depreciation expense and the remaining $41,000 relates to expenses that are paid in the month they are incurred.

5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Required:

1. Prepare a schedule of expected cash collections for July, August, and September.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September.

3. Prepare an income statement for the quarter ended September 30.

4. Prepare a balance sheet as of September 30.

With alternative choice decisions, managers seek to choose the alternative most likely to accomplish the objectives of the organization. In addition to ROI, discuss other business objectives that may be important in the choice of the best alternative.

When the computerised information system is significant,the auditor should obtain an understanding of the environment and whether it may influence the various risks involved. Required:

(a) Explain five(5)internal control characteristic in a computerised environment

(b) Discuss any five(5) problems encountered by an auditor in computerised environment

(c) Identify an two(2) audit objectives in a computerised system