Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows:

1. The inventory at January 1, 2016, had a retail value of $37,000 and a cost of $30,090 based on the conventional retail method.
2. Transactions during 2016 were as follows:

Sales to employees are recorded net of discounts.

3. The retail value of the December 31, 2017, inventory was $68,850, the cost-to-retail percentage for 2017 under the LIFO retail method was 70%, and the appropriate price index was 102% of the January 1, 2017, price level.
4. The retail value of the December 31, 2018, inventory was $40,950, the cost-to-retail percentage for 2018 under the LIFO retail method was 69%, and the appropriate price index was 105% of the January 1, 2017, price level.

Required:
1. Estimate ending inventory for 2016 using the conventional retail method.
2. Estimate ending inventory for 2016 assuming Raleigh Department Store used the LIFO retail method.
3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2017. Estimating ending inventory for 2017 and 2018.

Below is an alphabetical listing of all the accounts for T.O.'s Dance studio on 12/31/11. Assume all adjustments have been made and all balances are "normal." Accounts payable 3,000 Accounts receivable 8,000 accumulated depreciation-Equip. 3,000 Contributed capital 2,000 Cash 5,000 Depreciation expense 1,000 Dividends declared 1,000 Equipment 9,000 Income Tax expense 1,000 Income Taxes Payable 1,000 Service Revenue 18,000 Rent Expense 2,000 Retained Earnings(as of 1/1/11) 3,000 Unearned Revenue 1,000 wage expenses 4,000. Now prepare an Income Statement in good form for T.O.'s Dance Studio. Also prepare closing entries for T.O.'s Dance studio, Prepare The Statement of Retained Earnings for T.O.'s Dance Studio , & lastly Prepare the Classified Balance Sheet for T.O.'s Dance Studio.

Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows.

The cost to sell for each product consists of a 10 percent sales commission. The normal profit percentage for each product is 35 percent of the selling price.

Required:
1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products.
2a. Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory.
2b. Assuming inventory write-downs are usual business practice for Forester, record any necessary year-end adjusting entry.

1. Which of the following statement is FALSE?

a. The difference between the static budget and the flexible budget is the sale-volume variance.

b. The difference between allocated and budgeted overhead is the production volume variance

c. The amount of variable overhead allocated equals toe flexible budget amount

d. The production volume variance arises for both fixed and variable overhead cost

2.Flexible-budget variance measure:

a. What the costs and revenues should have been for the budgeted number of the outputs.

b. the differences between budgeted expenditures and actual expenditure for the budgeted number of outputs

c.the difference between budgeted and actual variable costs.

d. the difference between expected expenditures for the actual number of outputs and the actual expenditures for the actual number of outputs

e. what the costs and revenues should have been for the static budgeted number of outputs

Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018 year-end inventory is as follows:

Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.
2. Assuming that the company reports an inventory write-down as a line item in the income statement, for each of the LCNRV applications determine the amount of the loss.

Diaz Company issued $101,000 face value of bonds on January 1, 2018. The bonds had a 8 percent stated rate of interest and a ten-year term. Interest is paid in cash annually, beginning December 31, 2018. The bonds were issued at 99. The straight-line method is used for amortization.

Required

1. Use a financial statements model like the one shown below to demonstrate how (1) the January 1, 2018, bond issue and (2) the December 31, 2018, recognition of interest expense, including the amortization of the discount and the cash payment, affect the company’s financial statements.

2. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, 2018.

3. Determine the amount of interest expense reported on the 2018 income statement.

4. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, 2019.

5. Determine the amount of interest expense reported on the 2019 income statement.

[The following information applies to the questions displayed below.]
  
The adjusted trial balance for Chiara Company as of December 31, 2017, follows.

Required:
1(a) Prepare the income statement for the year ended December 31, 2017.
1(b) Prepare the statement of retained earnings for the year ended December 31, 2017.
1(c) Prepare Chiara Company's balance sheet as of December 31, 2017.

Prepare the income statement for the year ended December 31, 2017.

Prepare the statement of retained earnings for the year ended December 31, 2017.

Prepare Chiara Company's balance sheet as of December 31, 2017.

Haggerty Company pays its salaried employees monthly on the last day of each month. The annual salary payroll for 2015 follows. Compute the following for the payroll of December 31:

If an amount is zero, enter "0". Round your answers to the nearest cent.

The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company’s present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives:

At the end of three years, the fleet could be sold for one-half of the original purchase price.

Riteway Ad Agency’s required rate of return is 16%.

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.

Required:    

1. What is the net present value of the cash flows associated with the purchase alternative?

2. What is the net present value of the cash flows associated with the lease alternative?

3. Which alternative should the company accept?

Describe what is meant by asset impairment and identify the sources of inherent risks related to asset

impairment.

Problem 1-39 (Static) Cost Data for Managerial Purposes (LO 1-3)

Imperial Devices (ID) has offered to supply the state government with one model of its security screening device at “cost plus 20 percent.” ID operates a manufacturing plant that can produce 66,000 devices per year, but it normally produces 60,000. The costs to produce 60,000 devices follow:

Based on these data, company management expects to receive $522 (= $435 × 120 percent) per monitor for those sold on this contract. After completing 500 monitors, the company sent a bill (invoice) to the government for $261,000 (= 500 monitors × $522 per monitor).

The president of the company received a call from a state auditor, who stated that the per monitor cost should be:

Therefore, the price per monitor should be $324 (= $270 × 120 percent). The state government ignored marketing costs because the contract bypassed the usual selling channels.

Required:

For each of the four situations, calculate the cost basis per device based on the information shown above. (Round intermediate calculations and final answers to 2 decimal places.)

Options:

1. Only the differential production costs could be considered as the cost basis.
2. The total cost per device for normal production of 60,000 devices could be used as the cost basis.
3. The total cost per device for production of 66,000 devices, excluding marketing costs, could be used as the cost basis.
4. The total cost per device for production of 66,000 devices, including marketing costs, could be used as the cost basis.

25.65% is Google’s Long Term Assets as % of Total Assets 2018.

70.82% is Walmart’s Long Term Assets as % of Total Assets 2018.

-What are the possible reasons for the difference in Long Term Assets value between the two companies?

-Which company has the stronger asset turnover in 2018?  What does Asset turnover indicate?

It was determined that a shipment on Dec 29 from BGA to Hubba Bubba Corp. arrived at Hubba Bubba on Jan 2. Hubba Bubba purchased from BGA 100,000 lbs of bubble gum for a sales price of $4.00 per lb. Cost of the product was $2.00 per lb. Terms were FOB Shipping Point. Payment terms Net 30. BGA billed the company on account, including the required 5% sales tax which was added to the invoice to Hubba Bubba. Record this transaction on the journal.

What tax and nontax advantages and disadvantages accrue when an acquiring corporation purchases all of a target​ corporation's stock for cash and subsequently liquidates the target​ corporation?

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Select the advantages of purchasing all of the target​ corporation's stock for cash and subsequently liquidating the target corporation into the acquiring corporation.​ (Select all that​ apply.)

A. The acquiring corporation assumes the tax attributes of the target corporation.

B. The target corporation pays a​ tax, however the​ shareholders' receive the distribution as a​ tax-free distribution.

C. The only tax cost incurred to accomplish the transaction is that the target​ corporation's shareholders must recognize​ gain/loss on the sale of their target corporation stock.

D. No tax cost is incurred in the transfer of the assets from the target corporation to the acquiring corporation.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Select the disadvantages of purchasing all of the target​ corporation's stock for cash and subsequently liquidating the target corporation into the acquiring corporation.​ (Select all that​ apply.)

A. A Sec. 338 election can be used to​ step-up the​ assets' inside​ bases, however this generally involves tax on the gain from the deemed Sec. 338 sale.

B. The acquiring corporation does not obtain a​ stepped-up basis in the acquired assets.

C. Tax is incurred in the transfer of the assets from the target corporation to the acquiring corporation.

D. The stock basis​ "loss" cannot be deducted for five​ years, and therefore does not provide a current benefit to the acquiring corporation.

Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 10 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively.

Use the NPV decision rule to evaluate these projects; which one(s) should it be accepted or rejected?