Why are inventories and prepaid expenses excluded in computing the acid-test ratio?

Imagine that you are a leader of a company that wants to change to more of a B corporation. However, many of the current employees have been with the company for over five years and have established a culture that may not be in line with your new vision. Your job is to analyze your own leadership style and what changes you will need to make to see your vision become reality. You will also need to investigate other companies and how they changed their corporate culture.

Flexible Budget for Selling and Administrative Expenses for a Service Company

Morningside Technologies Inc. uses flexible budgets that are based on the following data:

Prepare a flexible selling and administrative expenses budget for April for sales volumes of $110,000, $140,000, and $165,000. Enter all amounts as positive numbers.

Kubin Company’s relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.40 Direct labor $ 4.40 Variable manufacturing overhead $ 1.90 Fixed manufacturing overhead $ 5.40 Fixed selling expense $ 3.90 Fixed administrative expense $ 2.90 Sales commissions $ 1.40 Variable administrative expense $ 0.90 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 15,500 units? b. What is the total indirect manufacturing cost incurred to make 15,500 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 15,500 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? 3. Assume the cost object is the company’s various sales representatives. Furthermore, assume that the company spent $44,950 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives’ compensation. a. When the company sells 15,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 15,500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

Bonita Corp. has 150,240 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,210,400. Additional transactions not considered in the $1,210,400 are as follows.

Analyze the above information and prepare an income statement for the year 2017, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 38% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.)

Depreciation by Three Methods; Partial Years Razar Sharp Company purchased equipment on July 1, 2014, for $70,200. The equipment was expected to have a useful life of three years, or 6,480 operating hours, and a residual value of $2,160. The equipment was used for 1,200 hours during 2014, 2,300 hours in 2015, 1,900 hours in 2016, and 1,080 hours in 2017.

Required: Determine the amount of depreciation expense for the years ended December 31, 2014, 2015, 2016, and 2017, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.

Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.

a. Straight-line method Year Amount 2014 $ 2015 $ 2016 $ 2017 $

b. Units-of-output method Year Amount 2014 $ 2015 $ 2016 $ 2017 $

c. Double-declining-balance method Year Amount 2014 $ 2015 $ 2016 $ 2017 $

Roy Reds Ltd is a Manufacturing Company.The Following Ledger account balances were extracted from the books of the company for the year ended December 31,2004

stocks as at January1,2004:

Raw materials$40000,Partly manufactured good (WIP) $50000,Finished Goods $37000

Stocks as at December 31,2004:

Raw Materials $30000,Partly Manufactured goods (WIP) $60000 Finished Goods $45000

Other balances:

Purchases of raw materials$136000,freight and carriage on raw materials $5000,production workers salary $170000,Rent and Rates$8000,Gas and Fuel $15000,office workers pay $20000,Depreciation of productive machinery and plant $10000,sales $550000

Notes:

Rent and rates,gas and fuel must be apportioned 60% to factory and 40% to office.

Required:

Prepare the Manufacturing,Trading and Profit and loss Accounts for the period ending 31December 2004(clearly indicate the following in your answer)

1 Prime Cost

2 Factory Overheads

3 Cost of Production

4 Gross Profit

5 Net Profit

Record the transactions in a journal, transfer the journal entries to T-accounts, compute closing amounts for the T-accounts, and construct a balance sheet to answer the question.

Jan 25. Borrow $52,000 from a bank
Jan 26. Purchase equipment for $48,000 in cash
Jan 27. Issue $85,000 in stock

What is the final amount in Total Assets?

Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, how much income should each report from SleepEZ for 2018 under both the daily allocation and the specific identification allocation method? Refer to the following table for the timing of SleepEZ’s income.

(Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

a. There are no sales of SleepEZ stock during the year.

b. On April 4, 2018, Blinkin sells his shares to Nod.

c. On April 4, 2018, Winkin and Nod each sell their shares to Blinkin.

The partnership of Hendrick, Mitchum, and Redding has the following account balances:

This partnership is being liquidated. Hendrick and Mitchum are each entitled to 40 percent of all profits and losses with the remaining 20 percent going to Redding.

1. What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance?

2. How should the $31,000 cash that is presently available in excess of liabilities be distributed?

3. If the noncash assets are sold for a total of $75,000, what is the minimum amount of cash that Hendrick could receive?

In year 0, Javens Inc. sold machinery with a fair market value of $630,000 to Chris. The machinery’s original basis was $493,920 and Javens’s accumulated depreciation on the machinery was $73,000, so its adjusted basis to Javens was $420,920. Chris paid Javens $63,000 immediately (in year 0) and provided a note to Javens indicating that Chris would pay Javens $94,500 a year for six years beginning in year 1.

1. What is the amount and character of the gain that Javens will recognize in year 0?
2. What amount and character of the gain will Javens recognize in years 1 through 6?

explain the relationship between sampling evidence, materiality and desired level? Accounting auditing.

An example is the Higher risk of material misstatement the more evidence we need The lower the materiality amount the higher the sample size

Dana intends to invest $66,000 in either a treasury bond or a corporate bond. The Treasury Bond yields 5 percent before tax and the corporate bond yields 6 percent before tax.

A) Assuming dana's federal marginal rate is 24 percent and her marginal state rate is 5 percent, which of the two options should she choose? Assume the Dana itemizes deductions

Corporate bonds

Treasury Bonds

A2) How much interest after-tax would Dana earn by investing in the corporate bond?

B) if she were to move to another state were her marginal state rate would be 10 percent, which of the two options should she choose? Assume that Dana itemizes deductions

Corporate Bonds

Treasury Bond

B2) how much interest after-tax would Dana earn by investing in the corporate bond as per requirement B)?

Alton Inc. is working at full production capacity producing 26,000 units of a unique product. Manufacturing costs per unit for the product are as follows: Direct materials $ 10 Direct labor 9 Manufacturing overhead 11 Total manufacturing cost per unit $ 30 The per-unit manufacturing overhead cost is based on a $5 variable cost per unit and $156,000 fixed costs. The nonmanufacturing costs, all variable, are $8 per unit, and the sales price is $45 per unit. Sports Headquarters Company (SHC) has asked Alton to produce 6,500 units of a modification of the new product. This modification would require the same manufacturing processes. However, because of the nature of the proposed sale, the estimated nonmanufacturing costs per unit are only $4 (not $8). Alton would sell the modified product to SHC for $35 per unit.

Required: Suppose that Alton Inc. had been working at less than full capacity to produce 21,400 units of the product when SHC made the offer. What is the minimum price per unit that Alton should accept for the modified product under these conditions?