After reading the Graham, Campbell, and Rajgopal article, you might get the implication for the motivation of voluntary disclosure. Why does the article suggest that managers’ earnings guidance can destroy the firm’ value?

Because the preparation of the guidance is costly

The earnings guidance can increase agency cost by discouraging managers from focusing on long-term value increase

The guidance is generally not accurate, and make confusions in the market

None of the above

Baur Company has 21,000 shares of $10 par value, 8% preferred stock and 500,000 shares of $1 par value common stock outstanding. As of December 31, 2018, it had $900,000 of Retained earnings. On December 31, 2018, the Board of Directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared in 2016 and 2017 and no dividends were in arrears prior to 2016. The company is considering the following options.

Option 1 The preferred stock is noncumulative and the dividend for 2018 would be $30,000.

Option 2 The preferred stock is cumulative and the dividends would be $30,000.

Option 3 The preferred stock is cumulative and the dividends would be $75,000.

Required: For each scenario, determine the dollar amount of dividends that would be paid to each class of stockholder.

Define the following as they pertain to dividend distribution: a. Date of declaration b. Date of record c. Date of payment

On which of these dates (date of declaration, date of record or date of payment) would a company NOT make a journal entry?

Lance has two adult children from a previous marriage. He has gifted them money for the past three years from his separate bank account and his wife has consented to split the gifts each year. Lance made gifts to his children as follows:

2016: Gifts of $60,000 to each child

2017: Gifts of $40,000 to each child

2018: Gifts of $50,000 to each child

1. What is the amount of Lance’s total taxable gifts?

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 $

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.

Additional information:

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).)

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.

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

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:

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:

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.)

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.

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?

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:

The division of costs between variable and fixed is as follows:

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.

2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.

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?

1. In favor of the proposal because of the reduction in break-even point.
2. In favor of the proposal because of the possibility of increasing operating income.
3. In favor of the proposal because of the increase in break-even point.
4. Reject the proposal because if future sales remain at the current level, the operating income will increase.
5. Reject the proposal because the sales necessary to maintain the current operating income would be below the current year sales.

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.)

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)?

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:

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

2. Prepare On Company's statement of cost of goods manufactured for December.

3. Prepare On Company's income statement for December.