o As a financial accountant, determine the best type of income statement a retailer should use. Defend your suggestion.

o Analyze the different inventory valuation methods discussed in the textbook. Based on your analysis, recommend the most accurate valuation method that reflects current economic conditions. Provide a rationale for your recommendation.

Patrick and Lydia are a couple with their daughter Nina, who has just turned 2. They live in Norfolk. Lydia has been working part-time after her maternity leave (20 hours per week) and could carry on doing so until Nina is in primary school. However, Lydia is reconsidering and is looking into going back to a full-time job now rather than in 3 years’ time. Patrick is a full-time librarian and works 40 hours per week. Nina currently attends a nursery part-time (25h per week) for £125 per week (paid for all 52 weeks). She would attend nursery full-time for double the price if Lydia took the full-time job (at 40 hours per week). Lydia currently earns £8,600 per year (same amount after income tax and national insurance) and Patrick, £20,000 (£17,135.84 after tax and national insurance). If Lydia takes the full-time job (which involves changing role), her gross earnings will increase to £18,000 (£15,775.84 after tax and national insurance). Lydia also receives child benefit for Nina, equating to £1076.40 per year.

2.1 Using the Tax credit calculator, calculate the couple’s total tax credit entitlement and their net household income after childcare costs in each option.

2.2 Explain which option is more favourable in the short-term and what factors contribute to this being the case.

A department has an initial markup of 64%. Planned sales for April are $10,000 and $12,000 for May. The desired stock-to-sales ratio for April is 7.0 and 6.5 for May. Planned markdowns for April are $3,000, and $4,000 for May. Calculate the planned April purchases at retail and at cost.

I already know the answers just need to know how to get there.

Answers= $21,000 at retail, $7560 at cost

Jennson ltd manufactures one product only. the car model T6, the standard cost of which the following

Direct Material 16 ,Direct Labour 8 ,Variable Production Overhead 8 ,Fixed Production Overhead 10 , Total cost = 42

The fixed production overhead figure per unit has been based on a budgeted normal output of 30,000 units per annum It is expected that fixed overheads are incurred evenly over the year The actual fixed production overheads for July were £34,000. Selling, distribution and administration expenses are:

Variable 10% of the sales value - Fixed £240,000 per annum

The selling price is £70 per unit and in July the number of units produced and sold were

Units Production 3.000

Sales 2.400

There were no opening stocks in July.

You are required to: (a) Prepare profit statements for July using: Variable (marginal) costing and Absorption costing

(b) Present a reconciliation of the profit figures in your answer to (a) and explain the reasons for any differences between the two profit statements

Comparative balance sheet accounts of Pina Company are presented below. PINA COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 Debit Balances 2017 2016 Cash $69,500 $50,900 Accounts Receivable 153,400 131,000 Inventory 75,300 60,900 Debt investments (available-for-sale) 54,800 85,600 Equipment 70,300 48,300 Buildings 143,900 143,900 Land 40,000 24,900 Totals $607,200 $545,500 Credit Balances Allowance for Doubtful Accounts $10,100 $7,900 Accumulated Depreciation—Equipment 20,800 14,000 Accumulated Depreciation—Buildings 36,900 27,700 Accounts Payable 66,500 59,600 Income Taxes Payable 11,900 10,100 Long-Term Notes Payable 62,000 70,000 Common Stock 310,000 260,000 Retained Earnings 89,000 96,200 Totals $607,200 $545,500

Additional data: 1. Equipment that cost $10,000 and was 60% depreciated was sold in 2017. 2. Cash dividends were declared and paid during the year. 3. Common stock was issued in exchange for land. 4. Investments that cost $34,700 were sold during the year. 5. There were no write-offs of uncollectible accounts during the year. Pina’s 2017 income statement is as follows. Sales revenue $946,900 Less: Cost of goods sold 602,300 Gross profit 344,600 Less: Operating expenses (includes depreciation expense and bad debt expense) 248,400 Income from operations 96,200 Other revenues and expenses Gain on sale of investments $14,900 Loss on sale of equipment (3,000 ) 11,900 Income before taxes 108,100 Income taxes 45,100 Net income $63,000

(a) Compute net cash provided by operating activities under the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net cash flow from operating activities $

(b) Prepare a statement of cash flows using the indirect method.

1) Which inventory method is best to use in accordance to the accounting principles? Is it FIFO or AVCO and why ? Pls give examples including numerical answers.

2) Explain the fundamental characteristics of accounting information in a lay man's terms and also the conceptual framework

50. How does a business measure the cost of property, plant and equipment?

1. List three examples of items paid to the purchaser that is part of the total cost of land?    
2. A piece of machinery equipment has a purchase price of $10,000. We also paid $1,000 commission, $1,200 for sales tax, and $300 for repair work from damaged when unloading. What is the amount to be debited to the Equipment account?
   

.

50. What is depreciation and how is it computed?

1. Use the following information regarding a piece of equipment to answer the following questions:

                        Cost of machine is $20,000
                   Useful life is 4 years or 15,000 machine hours
                   Residual value is $5,000

1. What is the depreciation expense for the first year using the straight-line method?
   
   
   

Assume the equipment was used 3,000 hour the first year of operations. What is the depreciation expense for the first year based on machine hours using the units of production method?

What are the four purposes of cost allocation?

Why should budgeted cost rates, rather than actual cost rates, be used for allocating the variable costs of service departments?

Admire is a retail company that sells specialized gardening products. The company is considering opening a new store on October 1, Year1. As budget coordinator, you have been asked to prepare a master budget for the first 3 months of the company’s operation. You have gathered the following information:

October sales are estimated to be $300000 of which 45 percent will be cash and the remainder will be on credit. The company expects all sales to increase at the rate of 20 percent per month for November and December. Sales in January Year 2 are expected to be $250000.

The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale.

Prepare a sales budget and a schedule of cash receipts using these facts and your excel template. Check your answers here before moving to the next part, by completing the cells requested in the chart below.

The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month’s cost of goods sold. (Ending inventory for December is based on budgeted January Year2 sales.)

Assume that all inventory purchases are made on account (on credit). The company pays 80 percent of accounts payable in the month of purchase and the remaining amount in the following month.

In excel, prepare an inventory purchases budget and a cash payments budget for inventory purchases. Use the check figures below before you continue.

Budgeted selling and administrative expenses per month follow.

• Salary expense (fixed): $ 28200
• Sales commissions:  5 percent of Sales
• Supplies expense:   2 percent of Sales
• Utilities (fixed): $2600              
• Depreciation on store equipment (fixed)*:   You compute    
• Rent (fixed) $ 11000          
• Miscellaneous (fixed): $ 3500      

*The capital expenditures budget indicates that the company will spend $182400 on October 1 for store fixtures, which are expected to have a $24000 residual value and a 36 month useful life.

Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred.

In excel, prepare the selling and administrative expenses budget and the cash payments budget for selling and administrative expenses. Check the key figures below.

Admire issued common stock for $50000 on October 5.

A dividend of $28000 was paid on December 15.

The company borrows and repays funds in increments of $1,000 on the last day of the month. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $16000 cash cushion.   

Prepare a cash budget on your excel template. Check key figure below.

Use your excel spreadsheet , completed as part of Question 1, to complete the following budgets for Admire Company.

Budget h. Income statement for the quarter ended December 21, Year1.

Budget i. Balance sheet as of December 31, Year1.

Income statement

Input expenses as negatives. Use a minus sign in front of the number.

Balance Sheet

Enter any contra-assets as negative numbers. Use a minus sign.

South Sea Baubles has the following (incomplete) balance sheet and income statement.

a&b. What is shareholders’ equity in 2015 and 2016? (Enter your answers in millions.)

c&d. What is net working capital in 2015 and 2016? (Enter your answers in millions.)

e. What are taxes paid in 2016? Assume the firm pays taxes equal to 35% of taxable income. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

f. What is cash provided by operations during 2016? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

g. Net fixed assets increased from $800 million to $900 million during 2016. What must have been South Sea’s grossinvestment in fixed assets during 2016? (Enter your answer in millions.)

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Question17of20Total17 of 20

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies.

For years, Worley believed that the 8% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:

Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $36,000 to buy from manufacturers):

Required:

1. Compute the total revenue that Worley would receive from University and Memorial.

2. Compute the activity rate for each activity cost pool.

3. Compute the total activity costs that would be assigned to University and Memorial.

4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $36,000 cost of goods sold that Worley incurred serving each hospital.)

Describe the role of scenario analysis within the discipline of risk management. (10)

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 320 shares of preferred stock and 4,200 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2021:

Donnie Hilfiger has the following beginning balances in its stockholders’ equity accounts on January 1, 2021: Preferred Stock, $320; Common Stock, $42; Additional Paid-in Capital, $77,000; and Retained Earnings, $30,900. Net income for the year ended December 31, 2021, is $11,200.

Required:

1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

2. Select whether each of the following transactions increases ( + ) or decreases ( − ) total assets, total liabilities, and total stockholders' equity. (If none of the categories apply for a particular item, leave the cell blank.)

On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 27,000, $18 par, common shares. The market price of the common stock is $47 on this date.

Required:
1. 2. & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Required information [The following information applies to the questions displayed below.] Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations. May 1 G. Gram invested $44,500 cash in the company in exchange for its common stock. 1 The company rented a furnished office and paid $2,200 cash for May’s rent. 3 The company purchased $4,590 of office equipment on credit. 5 The company paid $730 cash for this month’s cleaning services. 8 The company provided consulting services for a client and immediately collected $5,200 cash. 12 The company provided $2,500 of consulting services for a client on credit. 15 The company paid $790 cash for an assistant’s salary for the first half of this month. 20 The company received $2,500 cash payment for the services provided on May 12. 22 The company provided $3,600 of consulting services on credit. 25 The company received $3,600 cash payment for the services provided on May 22. 26 The company paid $4,590 cash for the office equipment purchased on May 3. 27 The company purchased $80 of advertising in this month’s (May) local paper on credit; cash payment is due June 1. 28 The company paid $790 cash for an assistant’s salary for the second half of this month. 30 The company paid $300 cash for this month’s telephone bill. 30 The company paid $300 cash for this month’s utilities. 31 The company paid $1,600 cash in dividends to the owner (sole shareholder). 2.1. Prepare income statement for May. 2.2. Prepare statement of retained earnings for May. 2.3. Prepare Balance Sheet for May 31. 3. Prepare statement of cash flows for May. (Cash outflows should be indicated with a minus sign.)