Exercise 2-9 (Part Level Submission) Crane, Inc., has collected the following information on its cost of electricity: Machine Hours Total Electricity Costs January 500 $230 February 540 $280 March 340 $190 April 430 $200 May 640 $260 June 690 $330 July 300 $160 August 500 $250 September 220 $100 October 730 $320 November 820 $340 December 600 $300 Collapse question part (a) Correct answer. Your answer is correct. Using the high-low method, compute the variable cost of electricity per machine hour. (Round unit cost to 2 decimal places, e.g. 52.75.) Variable cost $Entry field with correct answer 0.4 per machine hour Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO VIDEO Attempts: 1 of 2 used Collapse question part (b) Incorrect answer. Your answer is incorrect. Try again. Compute the total fixed cost of electricity. (Round answer to 2 decimal places, e.g. 52.75.) Fixed cost $Entry field with incorrect answer 0.40 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO VIDEO Attempts: 2 of 2 used Collapse question part (c) Correct answer. Your answer is correct. Represent the electricity cost function in equation form. (Round answers to 2 decimal places, e.g. 52.75.) Total cost = $Entry field with correct answer 0.4 × MH + $Entry field with correct answer 12 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO VIDEO Attempts: 2 of 2 used Collapse question part (d) What is the expected electricity cost when 730 machine hours are used? (Round answer to 2 decimal places, e.g. 52.75.) Total cost $
In: Accounting
The following are Wildhorse Corp.’s comparative balance sheet accounts at December 31, 2017 and 2016, with a column showing the increase (decrease) from 2016 to 2017.
|
COMPARATIVE BALANCE SHEETS |
|||||||||
|
2017 |
2016 |
Increase |
|||||||
| Cash |
$811,100 |
$702,700 |
$108,400 |
||||||
| Accounts receivable |
1,139,100 |
1,176,000 |
(36,900 |
) |
|||||
| Inventory |
1,847,000 |
1,704,500 |
142,500 |
||||||
| Property, plant, and equipment |
3,317,700 |
2,945,400 |
372,300 |
||||||
| Accumulated depreciation |
(1,158,000 |
) |
(1,048,400 |
) |
(109,600 |
) |
|||
| Investment in Myers Co. |
312,200 |
274,000 |
38,200 |
||||||
| Loan receivable |
250,000 |
— |
250,000 |
||||||
| Total assets |
$6,519,100 |
$5,754,200 |
$764,900 |
||||||
| Accounts payable |
$1,010,900 |
$960,700 |
$50,200 |
||||||
| Income taxes payable |
29,900 |
50,500 |
(20,600 |
) |
|||||
| Dividends payable |
80,600 |
100,700 |
(20,100 |
) |
|||||
| Lease liabililty |
432,100 |
— |
432,100 |
||||||
| Common stock, $1 par |
500,000 |
500,000 |
— |
||||||
| Paid-in capital in excess of par—common stock |
1,499,300 |
1,499,300 |
— |
||||||
| Retained earnings |
2,966,300 |
2,643,000 |
323,300 |
||||||
| Total liabilities and stockholders’ equity |
$6,519,100 |
$5,754,200 |
$764,900 |
||||||
Additional information:
| 1. | On December 31, 2016, Wildhorse acquired 25% of Myers Co.’s common stock for $274,000. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,096,000. Myers reported income of $152,800 for the year ended December 31, 2017. No dividend was paid on Myers’s common stock during the year. | |
| 2. | During 2017, Wildhorse loaned $332,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $82,200, plus interest at 10%, on December 31, 2017. | |
| 3. | On January 2, 2017, Wildhorse sold equipment costing $59,800, with a carrying amount of $38,000, for $40,100 cash. | |
| 4. | On December 31, 2017, Wildhorse entered into a capital lease for an office building. The present value of the annual rental payments is $432,100, which equals the fair value of the building. Wildhorse made the first rental payment of $60,300 when due on January 2, 2018. | |
| 5. | Net income for 2017 was $403,900. | |
| 6. | Wildhorse declared and paid the following cash dividends for 2017 and 2016. |
|
2017 |
2016 |
|||
| Declared | December 15, 2017 | December 15, 2016 | ||
| Paid | February 28, 2018 | February 28, 2017 | ||
| Amount | $80,600 | $100,700 |
Prepare a statement of cash flows for Wildhorse Corp. for the year
ended December 31, 2017, using the indirect method.
(Show amounts that decrease cash flow with either a -
sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
In: Accounting
CASE STUDY USING EXCEL SPREADSHEET You work for Theo Walcott Tours Ltd which provide tourists and visitors with ‘experiences’ of Perth and its surrounds. Your manager is currently investigating introducing another product, which are ‘Luxury’ helicopter rides over beautiful bushland. Each trip would be 50km in total. Your manager wants you to use cost-volume-profit analysis in order to help assess the plan’s feasibility. She provides you with the following estimated data: Selling price per trip: $600 (total for 3 customers – trips only run with 3 customers) Costs: Fuel: $50 per trip Walcott ‘goodie bag’ per customer: $40 Helicopter rental per month: $20,000 Insurance per month (unlimited trips): $1,000 Pilot costs: $5,000 per month plus $100 per trip Maintenance costs are difficult to estimate but data from a similar company in a different location shows that these monthly costs were $11,000 when 5,000 kms were flown and $5000 when 1,500 kms were flown. ACCM 4100 Management Accounting 1 Trimester 2, 2020: Individual Excel Assignment REQUIRED: Calculate the following: 1) The Break-even point in trips per month 2) The Break-even point in dollars of revenue per month 3) Assuming a profit after tax requirement from the Helicopter trip business of $120,000 per year and a tax rate of 30%, calculate: a) Trips required per month to obtain target profit b) Revenue required per month to obtain target profit Your manager has requested that the spreadsheet is easy to use for ‘What-if’ analysis – so she would like to be able to change some of the inputs to see the impact on the calculations above – for example, if the Helicopter were able to be rented more cheaply or the selling price was increased.
In: Accounting
Prepare Journal Entries, Ledger, T- Accounts, Trial Balance, Income Statement, and Balance Sheet
The following are transactions of Samantha Payapag Advertising Company for the month of July 2013
July 3 Samantha Payapag invested 500,000 in the business.
July 5 Bought for cash, advertising supplies costing 80,000. Paid rental of the office, 7,300
July 9 Bought delivery truck from MJ Idos Trading, 350,000 on credit
July 12 Received 43,000 cash as advertising income
July 13 Bought furniture & fixtures, 32,000 in cash
July 17 Took 3,200 cash for personal purposes
July 18 Billed Bernalyn Galvez for the advertising service rendered to promote her product to the market, 10,000
July 23 Paid salaries of the employees, 15,000. Billed Zaldy Co. for the advertising service rendered, 4,000
July 24 Collected 1/2 of the amount Bernalyn Galvez owed to the company
July 26 Purchased another truck amounting to 120,000 from Edwina Motor, Inc. on credit
July 27 Paid MJ Idos Trading 230,000 as partial settlement of the account
July 30 Paid utility expense for the month
In: Accounting
For the just completed year, Hanna Company had net income of $134,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows:
| December 31 | ||||
| End of Year |
Beginning of Year | |||
| Current assets: | ||||
| Cash and cash equivalents | $ | 61,000 | $ | 83,000 |
| Accounts receivable | $ | 166,000 | $ | 196,000 |
| Inventory | $ | 435,000 | $ | 367,000 |
| Prepaid expenses | $ | 11,500 | $ | 13,800 |
| Current liabilities: | ||||
| Accounts payable | $ | 356,000 | $ | 392,000 |
| Accrued liabilities | $ | 8,000 | $ | 12,700 |
| Income taxes payable | $ | 38,000 | $ | 33,000 |
The Accumulated Depreciation account had total credits of $58,000 during the year. Hanna Company did not record any gains or losses during the year.
The company’s income statement for the year appears below:
| Sales | $ | 1,080,000 | |
| Cost of goods sold | 600,000 | ||
| Gross margin | 480,000 | ||
| Selling and administrative expenses | 310,000 | ||
| Income before taxes | 170,000 | ||
| Income taxes | 36,000 | ||
| Net income | $ | 134,000 | |
Required:
Using the direct method, convert the company's income statement to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.)
In: Accounting
Compare and contrast for-profit and not-for-profit corporate structures based on the information available from a balance sheet and an income statement? Fundamentally, what are the differences?
This is a list of the questions that needed to be answered but needed help with the one above
Why are balance sheets important to healthcare organization finance and what area of the balance sheet would you consider the most critical?
Comparing organizational costs, which costs does nursing administration have little control over and why? Which costs would be most important if you are expanding your services and considering quality improvement measures?
Compare and contrast for-profit and not-for-profit corporate structures based on the information available from a balance sheet and an income statement? Fundamentally, what are the differences?
Goodwill and patents are considered what types of assets? Give detailed examples and explain.
Compare and contrast assets which are the essential economic lifeblood of a healthcare organization's stability. Give detailed examples and explain.
In: Accounting
The number of X-rays taken and X-ray costs over the last nine months in a hospital are given below:
Month X-Rays Taken X-Ray Costs
January 6,250 $28,000
February 7,000 $29,000
March 5,000 $23,000
April 4,250 $20,000
May 4,500 $22,000
June 3,000 $17,000
July 3,750 $18,000
August 5,500 $24,000
September 6,750 $28,500
Using the high-low method, what is the hospital’s estimated monthly fixed X-ray cost?
In: Accounting
Break-Even Sales Under Present and Proposed Conditions
Howard Industries Inc., operating at full capacity, sold 64,000 units at a price of $45 per unit during the current year. Its income statement is as follows:
| Sales | $2,880,000 | ||
| Cost of goods sold | (1,400,000) | ||
| Gross profit | $1,480,000 | ||
| Expenses: | |||
| Selling expenses | $400,000 | ||
| Administrative expenses | 387,500 | ||
| Total expenses | (787,500) | ||
| Operating income | $692,500 |
The division of costs between variable and fixed is as follows:
| Variable | Fixed | |||
| Cost of goods sold | 75% | 25% | ||
| Selling expenses | 60% | 40% | ||
| Administrative expenses | 80% | 20% | ||
Management is considering a plant expansion program for the following year that will permit an increase of $900,000 in yearly sales. The expansion will increase fixed costs by $212,500 but will not affect the relationship between sales and variable costs.
Required:
1. Determine the total fixed costs and the total variable costs for the current year.
| Total variable costs | $ |
| Total fixed costs | $ |
2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
| Unit variable cost | $ |
| Unit contribution margin | $ |
3. Compute the break-even sales (units) for the
current year.
units
4. Compute the break-even sales (units) under
the proposed program for the following year.
units
5. Determine the amount of sales (units) that
would be necessary under the proposed program to realize the
$692,500 of operating income that was earned in the current
year.
units
6. Determine the maximum operating income
possible with the expanded plant.
$
7. If the proposal is accepted and sales remain
at the current level, what will the operating income or loss be for
the following year?
$
8. Based on the data given, would you recommend accepting the proposal?
In: Accounting
Europa Publications, Inc. specializes in reference books that keep abreast of the rapidly changing political and economic issues in Europe. The results of the company’s operations during the prior year are given in the following table. All units produced during the year were sold. (Ignore income taxes.)
|
Sales revenue |
$ |
1,200,000 |
|
|
Manufacturing costs: |
|||
|
Fixed |
283,000 |
||
|
Variable |
616,000 |
||
|
Selling costs: |
|||
|
Fixed |
24,000 |
||
|
Variable |
54,000 |
||
|
Administrative costs: |
|||
|
Fixed |
64,000 |
||
|
Variable |
19,000 |
||
Required:
1-a. Prepare a traditional income statement for the company.
1-b. Prepare a contribution income statement for the company.
2. What is the firm’s operating leverage for the sales volume generated during the prior year?
3. Suppose sales revenue increases by 12 percent. What will be the percentage increase in net income?
4. Which income statement would an operating manager use to answer requirement (3)?
Req. 1A
|
||||||||||||||||||||||||||||||||||
Req. 1B
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Req. 2
What is the firm’s operating leverage for the sales volume generated during the prior year? (Round your answer to 2 decimal places.)
|
Req. 3
Suppose sales revenue increases by 12 percent. What will be the percentage increase in net income? (Do not round intermediate calculations. Round your answer to 1 decimal place.)
|
Req. 4
Which income statement would an operating manager use to answer requirement (3)?
|
In: Accounting
In: Accounting
Manufacturing Income Statement, Statement of Cost of Goods Manufactured
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December:
| On Company |
Off Company |
|||
| Materials inventory, December 1 | $57,740 | $75,060 | ||
| Materials inventory, December 31 | (a) | 84,820 | ||
| Materials purchased | 146,660 | (a) | ||
| Cost of direct materials used in production | 154,740 | (b) | ||
| Direct labor | 217,680 | 168,890 | ||
| Factory overhead | 67,560 | 84,070 | ||
| Total manufacturing costs incurred in December | (b) | 485,640 | ||
| Total manufacturing costs | 550,840 | 550,840 | ||
| Work in process inventory, December 1 | 110,860 | 180,890 | ||
| Work in process inventory, December 31 | 93,540 | (c) | ||
| Cost of goods manufactured | (c) | 481,130 | ||
| Finished goods inventory, December 1 | 97,580 | 84,070 | ||
| Finished goods inventory, December 31 | 102,200 | (d) | ||
| Sales | 851,090 | 750,600 | ||
| Cost of goods sold | (d) | 485,640 | ||
| Gross profit | (e) | (e) | ||
| Operating expenses | 110,860 | (f) | ||
| Net income | (f) | 166,630 | ||
Required:
1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
| Letter | On Company | Off Company |
| a. | $ | $ |
| b. | $ | $ |
| c. | $ | $ |
| d. | $ | $ |
| e. | $ | $ |
| f. | $ | $ |
2. Prepare On Company's statement of cost of goods manufactured for December.
| On Company | |||
| Statement of Cost of Goods Manufactured | |||
| For the Month Ended December 31 | |||
| $ | |||
| Direct materials: | |||
| $ | |||
| $ | |||
| $ | |||
| Total manufacturing costs incurred during December | |||
| Total manufacturing costs | $ | ||
| $ | |||
3. Prepare On Company's income statement for December.
| On Company | ||
| Income Statement | ||
| For the Month Ended December 31 | ||
| $ | ||
| Cost of goods sold: | ||
| $ | ||
| $ | ||
| $ | ||
| $ | ||
In: Accounting
At the beginning of the current season on April 1, the ledger of Kokott Pro Shop showed Cash $3,000; Inventory $4,000; and Common Stock $7,000. These transactions occurred during April 2019.
Apr. 5Purchased golf bags, clubs, and balls on account from Hogan Co. $1,200, FOB shipping point, terms 2/10, n/60.
7Paid freight on Hogan Co. purchases $50.
9Received credit from Hogan Co. for merchandise returned $100.
10Sold merchandise on account to customers $600, terms n/30.
12Purchased golf shoes, sweaters, and other accessories on account from Duffer Sportswear $450, terms 1/10, n/30.
14Paid Hogan Co. in full.
17Received credit from Duffer Sportswear for merchandise returned $50.
20Made sales on account to customers $600, terms n/30.
21Paid Duffer Sportswear in full.
27Granted credit to customers for clothing that had flaws $35.
30Received payments on account from customers $600.
-PREPARE A TRIAL BALANCE ON APRIL 30 ,2019 DEBITS AND CREDITS
In: Accounting
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Units to be produced | 9,000 | 12,000 | 11,000 | 10,000 |
In addition, 15,750 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $5,600.
Each unit requires 7 grams of raw material that costs $1.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 8,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $15.50 per hour.
Required:
1-a. Prepare the company’s direct materials budget for the upcoming fiscal year. (Round "Unit cost of raw materials" answers to 2 decimal places.) Please also insert the year column after Quarter 4
| Required production in units of finished goods | Quarter 1 | Quarter 2 | Quarter 3 | Quarter4 |
| Units of Raw Materials Needed to meet production | ||||
| Units of Raw Materials needed per unit finished goods | ||||
| Add desired Units of ending raw material | ||||
| Total Units of raw material needed | ||||
| ? | ||||
| Units of raw material to be purchased | ||||
| Unit cost of raw material | ||||
| Cost of raw material to be purchased | ||||
*The chart ends after cost of raw materials to be purchased*
1-b. Prepare a schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year.
| Beg. Balance Account Payable | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year | |
| 1st Quarter Purchases | ||||||
| 2nd Quarter Purchases | ||||||
| 3rd Quarter Purchases | ||||||
| 4th Quarter Purchases | ||||||
| Total cash disbursement |
2. Prepare the company’s direct labor budget for the upcoming
fiscal year, assuming that the direct labor workforce is adjusted
each quarter to match the number of hours required to produce the
forecasted number of units produced. (Round "Direct
labor-hours per unit" and "Direct labor cost per hour" answers to 2
decimal places.) Please also add the year column next to
it. Thank you!
| Required Production in units | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 |
| Direct Labor Hours per unit | ||||
| Total Direct Labor cost per hour | ||||
| Direct Labor Cost per hour | ||||
| Total Direct Labor Cost |
In: Accounting
This week, let's talk about investments andinvestment risk. In class with you today are individuals with various experience in investing - some may be seasoned professionals, while others may have very little experience. Either case is perfect okay because we all approach investing, risk, and return differently.
When you invest your money, you have to consider a basic risk-return tradeoff. The risk-return tradeoff is the balance between the desire for the lowest possible risk and the highest possible returns. In general, low levels of uncertainty (low risk) are associated with low potential returns and high levels of uncertainty (high risk) are associated with high potential returns (link).
In: Accounting
what is the difference between audit risk and engagement risk? Accounting Audit. a couple of paragraphs
explain the occurrence and completeness assertions? and how does failure to meet each of those two assertions affect the financial statements? these are two of the eight management assertions. Accounting auditing
list the three objectives of internal control and the five components of internal control and a very brief description of the five components.
What are the management assertion and its definitions?
In: Accounting