5. Jasper Corp, has the following Stockholders’ Equity account balances and activity for Year 2.

Earnings per share =         __________________ / ___________________* = ________

* Compute Denominator: Weighted average common shares outstanding

Did performance improve in Year 2 as compared to Year 1? _________________Why?

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 36,000 Rets per year. Costs associated with this level of production and sales are given below:

The Rets normally sell for $50 each. Fixed manufacturing overhead is $324,000 per year within the range of 30,000 through 36,000 Rets per year.

Required:

1. Assume that due to a recession, Polaski Company expects to sell only 30,000 Rets through regular channels next year. A large retail chain has offered to purchase 6,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company would have to purchase a special machine to engrave the retail chain’s name on the 6,000 units. This machine would cost $12,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the special order? (Round your intermediate calculations to 2 decimal places.)

2. Refer to the original data. Assume again that Polaski Company expects to sell only 30,000 Rets through regular channels next year. The U.S. Army would like to make a one-time-only purchase of 6,000 Rets. The Army would pay a fixed fee of $1.80 per Ret, and it would reimburse Polaski Company for all costs of production (variable and fixed) associated with the units. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. What is the financial advantage (disadvantage) of accepting the U.S. Army's special order?

3. Assume the same situation as described in (2) above, except that the company expects to sell 36,000 Rets through regular channels next year. Thus, accepting the U.S. Army’s order would require giving up regular sales of 6,000 Rets. Given this new information, what is the financial advantage (disadvantage) of accepting the U.S. Army's special order?

Find the present value of an annuity due that pays $1,600.00 at the beginning of each quarter for 4 years, if interest is earned at a rate of 4%, compounded quarterly.

The present value is $___ (Round to 2 decimal places.)

Forecast Sales Volume and Sales Budget

For 20Y6, Raphael Frame Company prepared the sales budget that follows.

At the end of December 20Y6, the following unit sales data were reported for the year:

For the year ending December 31, 20Y7, unit sales are expected to follow the patterns established during the year ending December 31, 20Y6. The unit selling price for the 8" × 10" frame is expected to increase to $17 and the unit selling price for the 12" × 16" frame is expected to increase to $32, effective January 1, 20Y7.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y6, over budget.

Enter any decreases beginning with a minus (-) sign.

2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y7, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y7.

Enter any decreases beginning with a minus (-) sign. Round budgeted units to the nearest whole unit.

3.  Prepare a sales budget for the year ending December 31, 20Y7.

On “Bring Your Children to Work Day” at Wing Corporation, Susan Gills, a Wing employee, brought her ten-year-old daughter to work. ACE was installing Wing’s new computer system on that day. After installation, when Susan attempted to adjust the monitor connected to her new computer, she inadvertently knocked the monitor off the desk and onto the floor. The screen shattered causing a shard of glass to strike the child’s toe resulting in four stitches. Susan has blamed the installer, ACE, for placing the monitor in a dangerous position near the back edge of her desk. The damages to this point have been minimal as Susan drove her child to their physician and paid the $20 copay for an office visit. Yet, the Gills family has sued ACE for the following:

Likely future plastic surgery $ 5,000 Emotional distress to Child 500,000 Emotional distress to Susan 1,200,000 Total $1,705,000

ACE’s lawyers believe that this case, with the possible exception of the plastic surgery (for which the HMO won’t pay), is frivolous. ACE has no insurance to cover this sort of liability. If this case goes to court, ACE’s on staff attorneys will handle the case. To eliminate any possible bad press from this case, ACE’s lawyers suggested settling for a “nuisance value” of $10,000. The family rejected this offer out of hand and asked for $200,000 to settle this out of court. ACE has decided, at least at this point, to refuse any further settlement offer.

In the lawyer’s letter to you, ACE’s lawyers indicated that they believe that ACE has “just and meritorious defense available” to fight this case. Furthermore, ACE’s legal counsel for the case indicated that while she agrees that this case is largely frivolous, litigation involving a young child is somewhat of a gamble and that making a definite prediction on the outcome of the case is impossible. In the end she believes the judgment will likely be $5,000 for the plastic surgery. What entry or disclosure, if any, is necessary in this circumstance?   

Also what standard would go along with this?

Scroll down to complete all parts of this task. For each of the following independent situations, select from the option list provided the appropriate effect, if any, on Company A's December 31, Year 3, financial statements. Each choice may be used once, more than once, or not at all. Situation Effect 1. On December 31, Year 3, Company A incurred a probable loss that can be reasonably estimated between $50,000 and $300,000. No amount within the range appears to be a better estimate than any other. Accrual of a liability of $50,000 2. The occurrence of a gain contingency is probable and its amount can be reasonably estimated as $300,000. Disclosure in the notes but not an accrual 3. On December 1, Year 3, one of Company A's customers filed a lawsuit against the company. Company A's management concludes that $300,000 is the reliable estimate of the costs that would result from the unfavorable ruling against the company. The company's management and legal counsel agree that the likelihood of an unfavorable ruling is remote. Neither an accrual nor a disclosure 4. On December 1, Year 3, one of Company A's employees sued the company for damages caused by unsafe working conditions. At the end of Year 3, management concludes that it is probable Company A will be held liable for damages, and that $300,000 would be a reasonable estimate of the amount to be paid to the employee to settle the lawsuit. Company A's $1 million comprehensive liability insurance policy has a $50,000 deductible clause. Accrual of a liability of $50,000 5. On December 31, Year 3, Company A's management and legal counsel agree that it is probable that the company will have to pay $300,000 to settle a lawsuit against the company. Accrual of a liability of $300,000 6. On December 31, Year 3, Company A's management and legal counsel conclude that it is reasonably possible that Company A will be held liable in a lawsuit that was brought by the local government for environmental damages, and that the reasonable estimate of the amount the company will need to pay to settle the suit is between $50,000 and $300,000.

Riggs Company purchases sails and produces sailboats. It currently produces 1,250 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Riggs purchases sails at $263 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $93.89 for direct materials, $81.18 for direct labor, and $90 for overhead. The $90 overhead includes $78,400 of annual fixed overhead that is allocated using normal capacity. The president of Riggs has come to you for advice. “It would cost me $265.07 to make the sails,” she says, “but only $263 to buy them. Should I continue buying them, or have I missed something?” Prepare a per unit analysis of the differential costs. (Round answers to 2 decimal places, e.g. 15.75. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

The Ombudsman Foundation is a private not-for-profit organization providing training in dispute resolution and conflict management. The Foundation had the following preclosing trial balance at December 31, 2017, the end of its fiscal year:

Required:
a. Prepare closing entries for the year-end, using separate entries for each net asset classification.
b. Prepare a Statement of Activities for the year ended December 31, 2017.
c. Prepare a Statement of Financial Position as of December 31, 2017.
  

The end of period spreadsheet is useful in preparing an Adjusted Trial Balance from which the three Financial Statements can be prepared. Please indicate the results in the adjusted Trial Balance under the following circumstances. Please provide an example.

a. An account has a debit balance. The adjustment requires a credit to that account. The debit amount is higher than the credit amount. Is the result in the Adjusted Trial Balance a debit or credit? Please provide an example.

b. An account has a debit balance. The adjustment requires a credit to that account. The credit amount is higher than the debit amount. Is the result in the Adjusted Trial Balance a debit or credit? Please provide an example.

c. An account has a credit balance. The adjustment requires a credit to that account. Is the result in the Adjusted Trial Balance a debit or credit? Please provide an example.

d. An account has a debit balance. The adjustment requires a debit to the account. The debit amount is higher. Is the result in the Adjusted Trial Balance a debit or credit? Please provide and example.

Sheridan Company has delivery equipment that cost $56,800 and has been depreciated $24,300.

Record entries for the disposal under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Aztec, a manufacturer of hard board and fiber cement sidings and panels, purchased
equipment for its new product line 9 years ago at a cost of $43,000. The asset has a
market value of $17,700, if it were sold now. The current asset is expected to provide
adequate services for another 3 years, given that the annual maintenance costs of $7250 is
provided. It is estimated that, if the current asset is continued in service, its final market
value will be $9600 three years from now. However, due to changing customer needs, a
new piece of machinery is being considered for the product line. The company can
purchase the new equipment at a cost of $51,000 and a $540 salvage value at the end of
15-year economic life. The new equipment has annual maintenance costs of $5250. The
SL method with a 15-years life and zero market value is used to write off both assets.
Determine whether replacement now is economical based on an after-tax annual worth
analysis with an effective tax rate of 38% and an after-tax MARR of 2% per year.

when entering transactions into cash and credit journal systems, what entries need to take place?

• Use the Internet to research financial statements of a manufacturing company. Analyze the cost components of the primary manufacturing process and examine the significance of cost behavior analysis to the company. Evaluate the value of using cost behavior analysis to management.
• Examine the elements of the cost-volume-profit (CVP) income statement and provide your opinion on the benefits of its use for decision making by the management of the company researched over traditional income statements under generally accepted accounting principles (GAAP)

Required information

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

On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:

During January 2021, the following transactions occur:

3. Prepare an adjusted trial balance as of January 31, 2021.