(c) Concise Limited makes a component for one of the engines that it builds. It uses, on average, 2,000 of these components, steadily throughout the year. The component costs $16 per unit to make and it costs an additional $320 to setup the production process each time a batch of components is made. The holding cost per unit is 10% of the unit production cost. The company makes these components at a rate of 200 per week, and the factory is open for 50 weeks per annum. Calculate the Economic Batch Quantity EBQ. (d) List and explain seven key purposes of a budgeting system. (e) Briefly explain any four (4) approaches to budgeting

Amy, a single individual and sole shareholder of Brown Corporation, sold all of the Brown stock for $30,000. Amy's stock basis was $150,000. She had owned the stock for 3 years. Brown Corporation meets the Section 1244 requirements. 1) How much of an ordinary loss does Amy have? 2) How much of a capital loss does Amy have? 3) Do your answers above change if Amy is married? Explain how.

Given the following information:     

                                                                 Budget       Actual               

Units produced                                     20,000      22,000    

Materials (kg)                                         80,000      96,000                

Direct Labour (Hours)                         290,000     343,000                 

Material Costs                                    $800,000                    ?                

Direct Labour Costs                         $3,850,000     $4,557,800             

Variable Overhead Costs                $3,500,000     $4,400,000

Fixed Overhead Costs                      $1,600,000     $1,610,000

Other Information

Overhead is Allocated on Direct Labour Hours

During the year 99,000 kg of materials were purchased for $800,000

Beginning Inventory:  none

Ending Inventory:     3,000 kg

Required:

Prepare a flexible budget

Calculate the following variances

1. Material Rate
2. Material Efficiency
3. Labour Price            
4. Labour Efficiency
5. Variable Overhead Rate
6. Variable Overhead Efficiency
7. Fixed Overhead Rate
8. Fixed Overhead Production Volume

A client that has been allocating Overhead just based on Square Footage in the Plant and office. For example, if the purchasing department uses 100 square feet to a total of 1000 sq feet, they will get 10% of overhead allocated to the purchasing department. A recently added employee discussed ABC accounting for overhead allocation. My question is, what might be one advantage over all of the new work required? The costs do not change.

On December 31, 2017, Ainsworth, Inc., had 820 million shares of common stock outstanding. Thirty three million shares of 6%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2018. On April 30, 2018, Ainsworth purchased 30 million shares of its common stock as treasury stock. Twelve million treasury shares were sold on August 31. Ainsworth issued a 5% common stock dividend on June 12, 2018. No cash dividends were declared in 2018. For the year ended December 31, 2018, Ainsworth reported a net loss of $205 million, including an after-tax loss from discontinued operations of $530 million. Required: 1. Compute Ainsworth's net loss per share for the year ended December 31, 2018. 2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2018. 3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2018 and 2017 comparative income statements. Assume EPS was reported in 2017 as $0.75, based on net income (no discontinued operations) of $615 million and a weighted-average number of common shares of 820 million.

Identify the financial statements that need to be reformatted and the new classifications arising from the reformatting. Explain why financial statements need to be reformatted.

(c) Concise Limited makes a component for one of the engines that it builds. It uses, on average, 2,000 of these components, steadily throughout the year. The component costs $16 per unit to make and it costs an additional $320 to setup the production process each time a batch of components is made. The holding cost per unit is 10% of the unit production cost. The company makes these components at a rate of 200 per week, and the factory is open for 50 weeks per annum. Calculate the Economic Batch Quantity EBQ. (d) List and explain seven key purposes of a budgeting system. (e) Briefly explain any four (4) approaches to budgeting

DIRECTIONS: Summarize these notes

The Current Ratio measures a firm’s ability to pay off its short-term obligations. It is calculated as follows: Current Ratio = Current Assets/Current liabilities Ideally, current ratio of 2 is desirable. Current ratio for both Lockheed Martin and Raytheon is less than 2. Moving from 2016 to 2017, the current ratio for both the companies improves indicating increase in current assets or decrease in current liabilities or both. For Lockheed Martin the current ratio improves from 1.2 to 1.38 and for Raytheon it moves from 1.54 to 1.66. Between the two companies, Raytheon is better placed as it has higher current ratios in both 2016 and 2017. Quick Ratio measures a firm's ability to meet current liabilities with its most liquid assets. It is calculated as: Quick Ratio = Current Assets excluding inventories/Current liabilities A quick ratio above 1 is considered safe as liabilities can be safely paid back using liquid assets. Raytheon's quick ratio in 2016 and 2017 is 1.35 and 1.49. The company is well poised. Its quick ratio is improving year to year. Quick ratio less than 1 indicates that the firm cannot fully pay back its liabilities with its most liquid assets. Lockheed Martin has quick ratio of 0.80 and 0.91 in 2016 and 2017. This is a worrisome situation for Lockheed Martin. Even though the quick ratio is improving, it is still less than 1. Raytheon is in a better position than Lockheed Martin as far as liquidity is concerned. From the above ratios, it can be observed that Lockheed is better in terms of asset turnover meaning that it is more efficient in using its assets. Whereas, Raytheon fairs a lot better in terms of converting its account receivables into cash. Raytheon takes about 17 days to do so which contrasts with Lockheed's 60 days. Based on Net Profit Margin, Lockheed Martin performs better than Raytheon as Lockheed Martin’s was 11.22% whereas Raytheon’s was just 7.98% only. Higher Net Profit Margin implies that the firm generates more net profit from each dollar sales it makes. Based on Total Assets turnover, Lockheed Martin performs better than Raytheon as Lockheed Martin’s was .98 whereas Raytheon was just .83. Higher total asset turnover implies that the firm generates more revenue from each dollar asset it has invested in the firm. Based on equity multiplier, Equity multiplier does not always explain about firm’s profitability. Instead, it explains the ratio of total assets of the firm versus total equity for the respective period. Higher the ratio, lower the firm’s dependency on equity capital and vice-versa. Lockheed Martin’s equity multiplier of 21.03 implies that the firm depends very less on its equity capital when compared to Raytheon.

Define

Define

(a)Negotiated transfer pricing method

(b)Marketing based transfer pricing method

Effect of each method on the divisional performance

Exercise 12-5 The following information is available for Splish Brothers Inc. for the year ended December 31, 2017. Beginning cash balance $ 47,835 Accounts payable decrease 3,933 Depreciation expense 172,206 Accounts receivable increase 8,717 Inventory increase 11,693 Net income 301,998 Cash received for sale of land at book value 37,205 Cash dividends paid 12,756 Income taxes payable increase 4,996 Cash used to purchase building 307,207 Cash used to purchase treasury stock 27,638 Cash received from issuing bonds 212,600 Prepare a statement of cash flows 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).) Splish Brothers Inc. Statement of Cash Flows—Indirect Method $ Adjustments to reconcile net income to $ $

Explain the concept of benchmarking with respect to the analysis and interpretation of profit. Discuss the advantages and disadvantages of the different ways of monitoring profit.

ACCT 301

ASSIGNMENT 4

1. You are required to prepare a Direct Material Budget for the second quarter (April to June) by considering a manufacturing company operating in Saudi Arabia as a sample study.                                                                          (4marks)

2. You are required to prepare the Sales price variance and Revenue sales quantity variance by taking any of your choice Saudi based company and suggest the suitable reasons for the variances.                                                              (3marks)

3. You are required to allot the support department cost to operations department by taking any Saudi based operating company.                            (3marks)

The two discussion questions for this week are as follows:

1. In thinking about overcoming the negative publicity and securities fraud fines related to revenue fraud, some companies succeed and move on, while others fail following the fraud. What forces might influence corporate “survivability” in the face of financial reporting fraud related to revenue?
2. How would you feel entrusting the care of your elderly relative to a company that was previously involved in fraudulent financial reporting?
   1. Would you be able to trust that company to care for your relative?
   2. Do you think that the company has moved on and is now a reliable caregiver that you could trust?