What assets are not in the Quick Ratio that are in the Current Ratio? What makes these assets different? Please explain

Compare planning budgets vs flexible budgets.

Be thorough in describing what each is, and the differences between them. Conclude with what the best use is for each.

1) Briefly explain what are the advantages and disadvantages of shared leadership?

1. The local police department is considering two types of sidearms for its officers. The Glock 40 costs $400 apiece and has a life of 4 years. The other option is a Sauer 45 that costs $800 and has a 12-year life. The Sauer pistol has a residual value of $200 at the end of its 12-year service life. Determine the better choice using the PW method and a study period of 8 years. The department uses a MARR of 5%.
2. Three different methods can be used for recovering by-product heavy metals from a manufacturing site’s liquid waste. The investment costs and incomes associated with each method are shown below. Assuming all methods have a 10-year life and the company’s MARR is 10% per year, determine which method should be selected using Annual Worth Analysis.

3. 	Method 1	Method 2	Method 3
   First Cost, $	20,000	18,000	25,000
   Salvage Value, $	1,000	3,000	1,500
   Annual Income, $	5,000	5,000	7,000

1. Over what period should the following be included as an expense in the income statement?

(a) The interest paid on a five-year corporate bond.

(b) The cost of a truck with an estimated fifteen-year economic life.

(c) The annual bonus earned by chief executive officers and paid in the following year.

(d) The one-time premium paid on a 10-year insurance policy.

(e) What basic accounting concepts do your answers reflect?

Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 40,000 speaker sets:

Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $18.00 per set; annual fixed costs are anticipated to be $1,986,000. (In the following requirements, ignore income taxes.)

Required:

1. Calculate the company’s current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States.
2. Determine the break-even point in speaker sets if operations are shifted to Mexico.
3. Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States.

1. If variable costs remain constant, by how much must fixed costs change?
2. If fixed costs remain constant, by how much must unit variable cost change?

4. Determine the impact (increase, decrease, or no effect) of the following operating changes.

Calculate the company’s current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States. (Do not round intermediate calculations and round your final answers to nearest whole dollar.)

Calculate the company’s current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States. (Do not round intermediate calculations and round your final answers to nearest whole dollar.)

Determine the break-even point in speaker sets if operations are shifted to Mexico. (Do not round intermediate calculationsand round your final answer up to nearest whole number.)

• Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States.

  a. If variable costs remain constant, by how much must fixed costs change? (Round your intermediate unit calculations to the nearest whole number and round your final answers to the nearest whole dollar.)

  b. If fixed costs remain constant, by how much must unit variable cost change? (Round your intermediate unit calculations to the nearest whole number and round your final answer to 2 decimal places.)

  Show less

  	a. Fixed costs not attempted by not attempted b. Variable costs not attempted by not attempted per unit

• Determine the impact (increase, decrease, or no effect) of the following operating changes.

  	a. Effect of an increase in direct material costs on the break-even point. not attempted b. Effect of an increase in fixed administrative costs on the unit contribution margin. not attempted c. Effect of an increase in the unit contribution margin on net income. not attempted d. Effect of a decrease in the number of units sold on the break-even point. not attempted

Is the 2018 IASB Framework useful in its present form?

Accounting standards and regulations should aim to state how all situations should be dealt with. Discuss.

If you were to develop an accounting conceptual framework from scratch, where would you start and how would you structure it?

Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on March 28 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $820,000. San Antonio paid $210,000 and signed a noninterest-bearing note requiring the company to pay the remaining $610,000 on March 28, 2020. An interest rate of 6% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $21,000 were paid at closing.
   
During April, the old building was demolished at a cost of $71,000, and an additional $51,000 was paid to clear and grade the land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

San Antonio borrowed $3,000,000 at 6% on May 1 to help finance construction. This loan, plus interest, will be paid in 2019. The company also had the following debt outstanding throughout 2018:

In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $610,000. The fair values of the equipment and the furniture and fixtures were $426,000 and $284,000, respectively. In December, San Antonio paid a contractor $290,000 for the construction of parking lots and for landscaping.
  
Required:
1. Determine the initial values of the various assets that San Antonio acquired or constructed during 2018. The company uses the specific interest method to determine the amount of interest capitalized on the building construction.
2. How much interest expense will San Antonio report in its 2018 income statement?

The following selected data were taken from the accounting records of Metcalf Manufacturing. The company uses direct-labor hours as its cost driver for overhead costs.

March’s costs consisted of machine supplies ($296,400), depreciation ($32,500), and plant maintenance ($570,100). These costs exhibit the following respective behavior: variable, fixed, and semivariable.

The manufacturing overhead figures presented in the preceding table do not include Metcalf’s supervisory labor cost, which is step-fixed in nature. For volume levels of less than 15,000 hours, supervisory labor amounts to $77,500. The cost is $155,000 from 15,000–29,999 hours and $232,500 when activity reaches 30,000 hours or more.

Required:

1. Determine the machine supplies cost and depreciation for January.

2. Using the high-low method, analyze Metcalf’s plant maintenance cost and calculate the monthly fixed portion and the variable cost per direct-labor hour.

3. Assume that present cost behavior patterns continue into the latter half of the year. Estimate the total amount of manufacturing overhead the company can expect in November if 29,900 direct-labor hours are worked.

1-

Determine the machine supplies cost and depreciation for January.

• Using the high-low method, analyze Metcalf’s plant maintenance cost and calculate the monthly fixed portion and the variable cost per direct-labor hour. (Round your "Variable cost per hour" answer to 2 decimal places.)

  	Variable cost per hour Fixed cost per month

• Assume that present cost behavior patterns continue into the latter half of the year. Estimate the total amount of manufacturing overhead the company can expect in November if 29,900 direct-labor hours are worked.

  	Manufacturing overhead cost

Compute the following ratios for 2015:

(a) Current ratio=

Working Capital=

(b) Acid-test ratio=

(c)Accounts receivable turnover=

Average Collection Period (Average Days to Collect)=

(d) Inventory turnover=

Days in inventory (Average Days to Sell)=

Operating Cycle = Average Days to Sell + Average Days to Collect

'(e ) Profit Margin =

(f) Asset turnover =

(g) Return on Assets =

Background Information Note the following:

• Acme Corporation is a publicly listed company

• ACME’s Fiscal year end is December 31

• In addition to the cash account being reconcile here; ACME has a separate Revolving Credit account.

  This is a revolving credit facility where interest is accrued on the average balance outstanding during the month. The interest amount is required to be paid on a monthly basis. The correct is amount calculated and taken from the account automatically by the bank.

• The facility has an annual interest rate of 4%

• Management has set-out in the Financial Statements that the average balance outstanding in this

  revolving credit facility is normally at around $ 150,000.

• The Audit Committee has also informed the Partner that the CRA audited ACME in the previous year

  and levied a penalty of $50,000 and has informed the Board that they plan continue their audit in the new year.

  Required

  Part 1

1. a) From the information provided in EXHIBIT A, perform and document a Bank Reconciliation. - 20 marks

2. b) From the Background info. provided above, identify potential errors and disclosure requirements - 5 marks

Part 2

1. a) Identify the financial assertions relating to the Cash account addressed by the Bank Reconciliation and explain how. – 5 marks

2. b) Identify what type of activity the Bank Reconciliation is. – 5 marks

3. c) Identify the 6 possible characteristics (of the activity above) and which apply to the Bank Rec. – 5 marks

BONUS
How would the Auditor test the identified characteristics. – 4 marks

EXHIBIT A

Clayton Company bought real estate, on which there was an old office building, for $300,000. It paid $50,000 in cash as a down payment and signed a 10% mortgage for the remainder. It immediately had the old building razed at a net cost of $35,000. Attorneys were paid $6,000 in connection with the land purchase and an additional $3,000 in connection with permits and zoning variances necessary for Patton's new office building. $20,000 was paid for excavation for the basement of the new building, $1,400,000 was paid for construction of the new building, and $75,000 was paid for a parking lot and necessary walkways and driveways.

1. The new office building should be recorded at a

. $1,400,000. b. $1,423,000. c. $1,420,000. d. $1,458,000.

2. Land should be recorded at a cost of

a. $335,000. b. $341,000. c. $364,000. d. $361,000

3. Mac Creamy Bakery purchased machinery for $60,000 eight years ago. It was expected to have a useful life of ten years, no salvage value, and was depreciated using the straight-line method. At the end of its eighth year of use, it was retired from service and given to a junk dealer. The entry to record the retirement includes a

a. debit to Loss on Disposal for $12,000. b. credit to Depreciation Expense for $6,000. c. debit to Machinery for $60,000. d. credit to Accumulated Depreciation—Machinery for $48,000.

4. Which of the following should not be included in the plant assets (property, plant, and equipment) classification?

a. Land on which warehouse sits b. Building housing corporate headquarters c. Parking lot used by visitors d. All of the above should be included

5. Salvage (residual) value is deducted in the computation of depreciation expense in all of the following methods with the exception of

a. straight-line. b. units-of-activity. c. declining-balance. d. All of the above include a deduction of salvage value.

6. When recording exchanges of assets that have commercial substance,

a. both gains and losses are recognized immediately. b. the gain or loss on the old asset is the difference between its cost and its fair market value. c. gains are treated as increases in the cost of the new asset. d. none of the above.

7. The cost of a patent should be amortized over

a. 20 years. b. the shorter of its legal life or its useful life. c. the longer of its legal life or its useful life. d. its useful life

8. On June 30, 2015, Fox Enterprises sold equipment with an original cost of $495,000 for $200,000. The equipment was purchased January 1, 2014, and was depreciated using the straight-line method assuming a five-year useful life and $45,000 salvage value. The necessary entries for 2015 include a

a. debit to Accumulated Depreciation—Equipment for $90,000. b. credit to Gain on Sale of Equipment for $160,000. c. credit to Cash for $200,000. d. debit to Depreciation Expense for $45,000

Complete the Following Problems (Show All Calculations)

9. Milan Company purchased land and an office building on March 1 for a combined cash price of $1,600,000. The land had a cost of $940,000 and the building had a book value of $200,000 on the seller's books. The land and building had fair market values of $1,040,000 and $560,000, respectively on March 1. Milan made the following entry at acquisition: Land ........................................................................................... 940,000 Building ...................................................................................... 1,000,000 Gain on Purchase .............................................................. 140,000 Accumulated Depreciation ................................................. 200,000 Cash .................................................................................. 1,600,000

In the space below, prepare the correct entry for the acquisition.

10. Northern Company bought machinery on January 1, 2009 at a cost of $500,000. The machinery had an estimated life of ten years and salvage value of $50,000. On January 1, 2011, Northern estimates that the machinery will have a life of only five more years and a $60,000 salvage value. Northern uses straight-line depreciation. Compute the revised annual depreciation.

11. Bagley Company bought equipment on July 1, 2014 at a total cost of $500,000. The equipment has an estimated useful life of 5 years and salvage value of $100,000. Bagley uses the double-declining-balance method of depreciation. Compute depreciation for 2013 and 2014.

12. Westlake Construction gave up a used crane and $224,000 cash for a new crane. The old crane cost $336,000, had $126,000 of accumulated depreciation, and a fair market value of $238,000. The exchange had commercial substance. In recording this exchange, the new crane should be recorded at

Assignment 1.

Nonpersonnel expenses: you have been tasked with computing baseline budget targets for the upcoming budget cycle. Using table 12.2 as your starting point, make the following adjustments.

TABLE 12.2

1. Solar panels have been installed with an expected 5% decrease in utility cost, for a savings of about $7,611.

2. The inspection program was started in FY 2014 and had funding for three fourths of the year. All of the start-up costs were incurred in FY 2014. The annualized value of the inspection supplies for the remaining one fourth of the year is $81,899.

3. Inflation is expected to be 2% expect for utilities, which will see no increase, and for leased space, which contract will have a 3% inflationary increase.

4. The number of service unites will not change

5. All departments are expected to achieve a 1% improvement in efficiency on all lines of cost and in all programs.

6. Budget baselines are not given out with cents, so round to the nearest dollar.

Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2013 through 2016 except for differences in depreciation on an operational asset. The asset cost $160,000 and is depreciated for income tax purposes in the following amounts:

Asset Building #1    Building #2 Equipment

This assignment has no beginning student file. You are to create Rosey’s fixed

asset depreciation worksheets from a blank worksheet using the straight-line depreciation method and based on the information in the preceding table. No summary sheet is required. Individual assets must show depreciation over their entire useful life. Follow the text examples for formatting. Label each worksheet Building #1 SL, Building #2 SL, and Equipment SL. In the same workbook, create Rosey’s fixed asset depreciation worksheets using the double declining balance method and based on the same table. No summary sheet is required. Individual assets must show depreciation over their entire useful life. Follow the text examples for formatting. Label each worksheet Building #1 DDB, Building #2 DDB, and Equipment DDB. In the same workbook, create Rosey’s fixed asset depreciation worksheets using the sum-of-the-year’s-digits method and based on the same table. No summary sheet is required. Individual assets must show depreciation over theirentire useful life. Follow the text examples for formatting. Label each worksheet Building #1 SYD, Building #2 SYD, and Equipment SYD. In the same workbook, you should now create a chart of each asset’s depre- ciation that compares the straight-line, double declining balance, and sum-of- the-year’s-digits methods of calculating depreciation. Label each worksheet Building #1 Chart, Building #2 Chart, and Equipment Chart. Choose any line chart and chart layout that you like.

Show Your Work (Formulas in excel)