Why do we keep a petty cash fund. What do we debit and credit when we replenish it?

How does a bank reconciliation help us control cash?

Portions of the financial statements for Peach Computer are provided below.

Required:

Prepare the operating activities section of the statement of cash flows for Peach Computer using the DIRECTmethod. (List cash outflows as negative amounts.)

A.) If you make quarterly payments of$331.00 into an ordinary annuity earning an annual interest rate of 5.47%, how much will be in the account after 4 years?

B.) If you make monthly payments of $464.00 into an ordinary annuity earning an annual interest rate of 7.4% compounded monthly, how much will you have in the account after 5 years? After 9 years?

C.) In 3 years Harry and Sally would like to have $26,000.00 for a down payment on a house. How much should they deposit each month into an account paying 8% compounded monthly?

Betty DeRose, Inc. operates two departments, the handling department and
the packaging department. During April, the handling department reported
the following information:

                                           % complete      % complete
                                units         DM           conversion 
work in process, April 1        18,000        38%             71%
units started during April      80,000
work in process, April 30       44,000        82%             47%

The cost of beginning work in process and the costs added during April
were as follows:

                                 DM         Conversion       Total cost
work in process, April 1      $ 51,764       $152,477         $204,241
costs added during April       191,452        232,125          423,577
total costs                    243,216        384,602          627,818

Calculate the total cost of the handling department's work in process
inventory at April 30 using the FIFO process costing method.

Diego Company manufactures one product that is sold for $76 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 47,000 units and sold 42,000 units.

The company sold 32,000 units in the East region and 10,000 units in the West region. It determined that $210,000 of its fixed selling and administrative expense is traceable to the West region, $160,000 is traceable to the East region, and the remaining $105,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

1. What is the company’s total gross margin under absorption costing? What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?

2. If the sales volumes in the East and West regions had been reversed, what would be the company’s overall break-even point in unit sales? What would have been the company’s variable costing net operating income (loss) if it had produced and sold 42,000 units? You do not need to perform any calculations to answer this question.

3.  Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions.

4. Assume the West region invests $37,000 in a new advertising campaign in Year 2 that increases its unit sales by 20%. If all else remains constant, what would be the profit impact of pursuing the advertising campaign?

If the analyst does not have the security permissions to access the data directly, then a data request form is required. There are a number of fields that the analyst is required to complete. What fields are necessary in a data request form? Who needs to be included in the routing of this form? Explain the form and the approval process you would recommend.

Adapted from Richardson, V. J., Teeter, R., & Terrell, K. (n.d.). Data analytics for accounting. Problems [TA1] [VP2]

Explain how Morrison Pump Company could implement an activity-based costing (ABC) system. When you are deciding on a company to use, consider the costs and benefits in implementing an ABC system. In your post, provide some background information about your company. Explain what it produces and identify the activities that would drive costs. Discuss the cost pools that it would use. Recommend the process it would need to go through to implement ABC in the company. http://www.morrisonpump.com/

As the controller of Lynbrook Securities, Inc., you were asked to evaluate a potential bond issuance to raise funds to expand the company’s operations. Lynbrook is considering issuing a $2 million, 5-year, 6 percent bonds payable on January 1, 2021. Interest would be payable semiannually on June 30 and December 31. Bond discounts and premiums would be amortized using the straight-line method. Requirement:

a. Prepare an amortization table for each of the 10 semiannual periods, under the following assumptions:

1. The bonds were issued at 99. (round to the nearest dollar)

2. The bonds were issued at 103. (round to the nearest dollar)

b. Prepare the journal entry to record the issuance of the bonds on January 1, 2021 if Lynbrook issued the bonds at 103.

c. Prepare the following journal entries necessary if the bonds were issued at 99:

i. Issuance of the bonds on January 1, 2021.

ii. Record the semiannual bond payment on June 30, 2021.

iii. Record the semiannual bond payment on December 31, 2021.

Managers at Wager Fabricating Company are reviewing the economic feasibility of manufacturing a part that the currently purchases from a supplier. Forecasted annual demand for the part is 3200 units. Wagner operates 250 days per year.

Wagner's financial analysts have established a cost of capital of 14% for the use of funds for investments within the company. In addition, over the past year $600,000 was the average investment in the company's inventory. Accounting information shows that a total of $24,000 was spent on taxes and insurance related to the company's inventory. In addition, an estimated $9000 was lost due to inventory shrinkage, which included damaged goods as well as pilferage. A remaining $15,000 was spent on warehouse overhead, including utility expenses for heating and lighting.

An analysis of the purchasing operation shows that approximately two hours are required to process and coordinate an order for the part regardless of the quantity ordered. Purchasing salaries average $28 per hour, including employee benefits. In addition, a detailed analysis of 125 orders showed that $2375 was spent on telephone, paper, and postage directly related to the ordering process.

A one-week lead time is required to obtain the part from the supplier. An analysis of demand during the lead time shows it is approximately normally distributed with a mean of 64 units and a standard deviation of 10 units. Service-level guidelines indicate that one stock-out per year is acceptable.

Currently, the company has a contract to purchase the part from a supplier at a cost of $18 per unit. However, over the past few months, the company's production capacity has been expanded. As a result, excess capacity is now available in certain production departments, and the company is considering the alternative of producing the parts itself.

Forecasted utilization of equipment shows that production capacity will be available for the part being considered. The production capacity is available at the rate of 1000 units per month, with up to five months of production time available. Management believes that with a two-week lead time, schedules can be arranged so that the part can be produced whenever needed. The demand during the two-week lead time is approximately normally distributed, with a mean of 128 units and a standard deviation of 20 units. Product costs are expected to be $17 per part.

A concern of management is that setup costs will be substantial. The total cost of labor and lost production time is estimated to be $50 per hour, and a full eight-hour shift will be needed to set up the equipment for producing the part.

Managerial Report

Develop a report for management of Wagner Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself. Include the following factors in your report:

1. An analysis of the holding costs, including the appropriate annual holding cost rate

2. An analysis of ordering costs, including the appropriate cost per order from the supplier

3. An analysis of setup costs for the production operation

4. A development of the inventory policy for the following two alternatives:

a. Ordering a fixed quantity Q from the supplier

b. Ordering a fixed quantity Q from in-plant production

5. Include the following in the policies of parts 4(a) and 4(b):

a. Optimal quantity Q*

b. Number of order or production runs per year

c. Cycle time

d. Reorder point

e. Amount of safety stock

f. Expected maximum inventory

g. Average inventory

h. Annual holding cost

i. Annual ordering cost

j. Annual cost of units purchased or manufactured

k. Total annual cost of the purchase policy and the total annual cost of the production policy

6. Make a recommendation as to whether the company should purchase or manufacture the part. What savings are associated with your recommendation as compared with the other alternative?

The management of Quest Media Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows:

The radio station requires an investment of $827,950, while the TV station requires an investment of $1,852,570. No residual value is expected from either project.

Required:

1a. Compute the net present value for each project. Use a rate of 10% and the present value of an annuity of $1 in the table above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest whole dollar.

1b. Compute a present value index for each project. If required, round your answers to two decimal places.

2. Determine the internal rate of return for each project by (a) computing a present value factor for an annuity of $1 and (b) using the present value of an annuity of $1 in the table above. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest whole percent.

3. The net present value, present value index, and internal rate of return all indicate that the (radio station / TV station) is a better financial opportunity compared to the (radio station / TV station), although both investments meet the minimum return criterion of 10%.

Continental Railroad Company is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows:

Required:

1. Assuming that the desired rate of return is 12%, prepare a net present value analysis for each proposal. Use the present value of $1 table above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest dollar.

2. Determine a present value index for each proposal. If required, round your answers to two decimal places.

3. The (maintenance equipment / ramp facilities / computer network) has the largest present value index. Although (maintenance equipment / ramp facilities / computer network) has the largest net present value, it returns less present value per dollar invested than does the (maintenance equipment / ramp facilities / computer network), as revealed by the present value indexes. The present value index for the (maintenance equipment / ramp facilities / computer network) is less than 1, indicating that it does not meet the minimum rate of return standard.

How is blockchain useful for accounting information systems (AIS)?

Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows:

Each project requires an investment of $275,000. A rate of 12% has been selected for the net present value analysis.

Required:

1a. Compute the cash payback period for each project.

1b. Compute the net present value. Use the present value of $1 table above. If required, round to the nearest dollar.

2. Because of the timing of the receipt of the net cash flows, the (plant expansion / retail store expansion) offers a higher (net present value / net cash flow).

The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows:

Each project requires an investment of $540,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 10% for purposes of the net present value analysis.

Required:

1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place.

1b. Compute the net present value for each investment. Use the present value of $1 table above. If required, use the minus sign to indicate a negative net present value.

2. Prepare a brief report for the capital investment committee, advising it on the relative merits of the two investments.

The front-end loader has a (smaller / larger) net present value because cash flows occur (earlier / later) in time compared to the greenhouse. Thus, if only one of the two projects can be accepted, the (front-end loader / greenhouse) would be the more attractive.