The following information is available for Ryan Corporation: Assets at cost - $160,000 (5 year life, straight-line depreciation and purchased 4 years ago); NBV - $32,000 while UCC is $47,000 with a CCA rate – 30%; meals and entertainment recorded in the books - $10,000; golf dues paid - $2,500; accounting income - $90,000. Based on this information and a tax rate of 45%, what is taxable income?

114,508

115,400

104,508

51,930

As a recently hired MBA intern, you are working in a consulting capacity to provide an analysis for Al Dente's Italian Restaurant. A financial income Statement is presented below: Sales $2,698,000 Cost of sales (all variable) $1,557,563 Gross Margin $1,140,438 Operating expenses: Variable $277,975 Fixed $213,675 Total operating expenses: $491,650 Administative expenses (all fixed) $564,375 Net operating income $84,413 This income statement presents the sales, expenses and pre-tax operating income for a local eating facility. At Al Dente, the average meal cost for lunches and dinners are $20 and $40 respectively. Al Dente serves both lunch and dinner 300 days per year and serves twice as many lunches as dinners.

4. The owner of the restaurant is thinking of increasing sales through additional advertising, which she will incur as an administrative expense. The proposed additional advertising campaign will cost $25,000. She anticipates that the additional advertising expense will result in an additional 6 lunches and 3 dinners on average, per day. Illustrate the impact on NOI assuming the changes above (hint: show a revised CM statement). Hint: for this type of ‘whatif’, compare the additional contribution margin impact on NOI given the change in units and change in fixed costs.

1- Incremental Analysis:

Explain two (2) examples of unavoidable costs for a sample business decision for a company.

2- Master Budget Terms:

List and explain three (3) benefits of budgeting for a company.

3- Additional Budget Terms:

Explain how to compute a flexible budget performance report.

... Reconciliations required to yield government-wide financial statements from fund financial statements and preparation of financial statements                                                   
The City of Jackson Hole is preparing its government-wide financial statements for the year. Its accountant must prepare a number of journal entries to recognize assets and liabilities previously omitted from the fund financial statements and to recognize revenues and expenses for the year under accrual accounting that were not recognized under the current financial resources measurement focus and the modified accrual basis of accounting used to prepare the Statement of Revenues, Expenditures, and Changes in Fund Balances for its funds.

a. Prepare the journal entries for the required reconciliations to recognize the following in the government-wide financial statements (all amounts in $1,000s):

1. Recognize Capital Assets of $968,320 as of the beginning of the year.
2. Record Depreciation Expense of $48,416 for the year and reverse Expenditures of $58,099 for Capital Outlays during the year.
3. Recognize $7,000 of Bonds Payable as of the beginning of the year.
4. Reverse Other Financing Sources of $2,000 and Expenditures—Debt Payments of $700 relating to increases and decreases in the bond liability during the year.
5. Reverse Deferred Revenue of $132,600 as of the beginning of the year.
6. Reverse $6,630 of Deferred Revenue recognized during the year.
7. Recognize Compensated Absences of $19,366 as of the beginning of the year and an increase in that liability of $968 during the year.
8. Recognize $20 of Accrued Interest Payable as of the beginning of the year and an increase in that liability of $33 during the year.
9. Recognize a liability of $26,629 relating to the City’s landfill as of the beginning of the year. The estimate for this liability did not change during the year.

On 31 December 2018, the accounting records in Ahmed’s Company showed the following information:

                                                                                          (in Dirhams)

Prepare the Income Statement AND Balance Sheet for year ended December 31, 2018

Problem 3

Ms. Lisa has recently joined PT KFC as staff in the finance team. Although still relatively young, she is already very mature in managing her own financial matters. She has already developed a solid plan to cover for her long term financial needs. She is confident that by following her plan she will not be worried of her future financial condition during her old age.

Ms. Lisa borrowed $90,000 for her own business loan from her colleague and she must repay him at 4% annual rate of interest. She should repay her loan for the next 5 years. The loan is amortized into five equal, end-of-year payments.

1. Calculate the annual, end-of-year loan payment.
2. Prepare an amortization schedule showing the interest and principal breakdown of each loan payments.

James Corporation is planning to issue bonds with a face value of $508,500 and a coupon rate of 6 percent. The bonds mature in 7 years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)

Required:

Compute the issue (sale) price on January 1 of this year for each of the following independent cases:

a. Case A: Market interest rate (annual): 4 percent.

Issue Price:

b. Case B: Market interest rate (annual): 6 percent.

Issue price:

c. Case C: Market interest rate (annual): 8.5 percent.

Issue price

On January 1, 2020, Bramble Corp. had 85,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred:

Net income for 2020 amounted to $989,000.

Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

In May, one of the processing departments at Messerli Corporation had beginning work in process inventory of $31,000 and ending work in process inventory of $52,000. During the month, $165,000 of costs were added to production and the cost of units transferred out from the department was $144,000. The company uses the FIFO method in its process costing system. In the department’s cost reconciliation report for May, the total cost to be accounted for would be: Multiple Choice $361,000 $196,000 $392,000 $83,000

At December 31, 2020, the available-for-sale debt portfolio for Crane, Inc. is as follows.

On January 20, 2021, Crane, Inc. sold security A for $16,100. The sale proceeds are net of brokerage fees.

Crane, Inc. reports net income in 2020 of $124,000 and in 2021 of $147,000. Total holding gains (including any realized holding gain or loss) equal $43,000 in 2021.

Prepare a statement of comprehensive income for 2020, starting with net income.

Prepare a statement of comprehensive income for 2021, starting with net income.

CRANE, INC
Statement of Comprehensive Income
                                                                      For the Year Ended December 31, 2021For the Month Ended December 31, 2021December 31, 2021

                                                                      Comprehensive IncomeNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainsUnrealized Holding Loss

$

                                                                      Comprehensive IncomeNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainsUnrealized Holding Loss

                                                                      Comprehensive IncomeNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainsUnrealized Holding Loss

$

                                                                      Add Less:                                                                       Comprehensive IncomeNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainsUnrealized Holding Loss

                                                                      Comprehensive IncomeNet IncomeOther Comprehensive IncomeReclassification Adjustment for Gain Included in Net IncomeReclassification Adjustment for Loss Included in Net IncomeUnrealized Holding GainsUnrealized Holding Loss

$

                                                                      Current Period Other Comprehensive income accumulated Other Comprehensive IncomeBeginning Balance, January 1, 2021Ending Balance, December 31, 2021Amount Reclassified from Accumulated Other Comprehensive IncomeUnrealized Holding Gains

                                                                      Beginning Balance, January 1, 2021Amount Reclassified from Accumulated Other Comprehensive IncomeCurrent Period Other Comprehensive incomeEnding Balance, December 31, 2021Accumulated Other Comprehensive IncomeUnrealized Holding Gains

$

                                                                      Accumulated Other Comprehensive IncomeCurrent Period Other Comprehensive income amount Reclassified from Accumulated Other Comprehensive IncomeEnding Balance, December 31, 2021Beginning Balance, January 1, 2021Unrealized Holding Gains

$

                                                                      Beginning Balance, January 1, 2021Unrealized Holding GainsAccumulated Other Comprehensive IncomeAmount Reclassified from Accumulated Other Comprehensive IncomeEnding Balance, December 31, 2021Current Period Other Comprehensive income

                                                                      Accumulated Other Comprehensive IncomeEnding Balance, December 31, 2021Unrealized Holding GainsAmount Reclassified from Accumulated Other Comprehensive IncomeBeginning Balance, January 1, 2021Current Period Other Comprehensive income

                                                                      Amount Reclassified from Accumulated Other Comprehensive IncomeEnding Balance, December 31, 2021Current Period Other Comprehensive income accumulated Other Comprehensive IncomeBeginning Balance, January 1, 2021Unrealized Holding Gains

$

1. Today corporations are required to send their stockholders an annual report. Assume that you are a prospective investor trying to decide if you should invest in a specific corporation. What type of information is contained in an annual report that would help you decide if this is the right investment for you?
2. Why are current assets listed before fixed assets on the balance sheet?
3. What are the differences between managerial accounting and financial accounting? From a career standpoint, which type do you prefer and why?
4. Write the accounting equation. Then define each term.

Cheryl Montoya picked up the phone and called her boss, Wes Chan, the vice president of marketing at Piedmont Fasteners Corporation: “Wes, I’m not sure how to go about answering the questions that came up at the meeting with the president yesterday.”

"What's the problem?"

“The president wanted to know the break-even point for each of the company’s products, but I am having trouble figuring them out.”

“I’m sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting at 9:00.”

Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. Data concerning these products appear below:

Total fixed expenses are $257,000 per year.

All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable numbers of customers.

The company has an extremely effective lean production system, so there are no beginning or ending work in process or finished goods inventories.

Required:  

1. What is the company’s overall break-even point in dollar sales? (Round CM ratio to 4 decimal places and final answer to the nearest whole dollar.)

2. Of the total fixed expenses of $257,000, $17,500 could be avoided if the Velcro product is dropped, $103,200 if the Metal product is dropped, and $77,600 if the Nylon product is dropped. The remaining fixed expenses of $58,700 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely.

a. What is the break-even point in unit sales for each product? (Do not round intermediate calculations.)

b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? (Do not round intermediate calculations.)

Financial data for Windsor, Inc. for last year appear below:

C. Windor's CFO has heard about EVA and is curious about whether it might be a better measure to use for evaluating division managers. Windsor's long term debt trades at book value, with interest rate of 10% while its equity has a market value of $1,200,000. The company's cost of equity is 12%. Windsor's income tax rate is 40%. Calculate each of the following components of EVA for the company, as well as the final EVA figure:

a. Weighted average cost of capital

b. Investment, as measured for EVA calculations

Why are the long-lived assets and inventory assertions of existence said to have an inherent risk of material misstatement that is higher than that of the account payable?