Partner revenue$4,492,000 7,900hoursStaff revenue$4,315,000 33,000hours

2. Briefly describe the following types of ratios and identify the financial statement users most interested in each type.

a. Liquidity ratios

b. Activity ratios

c. Profitability ratios

d. Coverage ratios

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What is the current ratio? Present a short critique of this widely used financial measure.

NEW MEXICO CORPORATION

…… had the following operating data for its first two years of operations: Variable costs per unit: Direct materials $ 5.00 Direct labor 3.00 Variable overhead 1.50 Fixed costs per year: Overhead $90,000 Selling and administrative 17,200 The company produced 30,000 units the first year and sold 25,000. In the 2nd year, it produced 25,000 units and sold 30,000 units. The selling price per unit each year was $15.

Required: 1. What are absorption and variable costing? How are they different and when are they used?

2. Prepare a comparative income statement (side by side) for the years 1 and 2, using absorption costing. Has the firm performance, as measured by income, improved or declined from Year 1 to Year 2?

3. Prepare comparative income statements for both years using variable costing. Has firm performance, as measured by income, improved or declined from Year 1 to Year 2?

4. Reconcile the difference between the income(s) shown between the two statements for each of the years.

5. Which method do you think more accurately measures performance? Why?

1.  On October 1, Topper Company signs a contract to sell 1,000tie-dyed shirts for $10,000 ($10.00 each).

On October 8, 900shirts are delivered and Topper receives $9,000 cash (900 * $10)

1. Prepare the journal entry Topper Company would record to recognize revenue on October 8:

On October 15, Topper modifies the agreement to sell an additional 500 tie-dyed shitsfor $4,000 ($8.00 each * 500 shirts) which is significantly lower than Topper’s stand-alone selling price at that time.

So they still need to deliver 100from the agreement made on October 1 plus another 500for a total of 600tie-dyed flags.  

Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,030 hours each month to produce 2,060 sets of covers. The standard costs associated with this level of production are:

During August, the factory worked only 640 direct labor-hours and produced 1,600 sets of covers. The following actual costs were recorded during the month:

At standard, each set of covers should require 2.5 yards of material. All of the materials purchased during the month were used in production.

Required:

1. Compute the materials price and quantity variances for August.

2. Compute the labor rate and efficiency variances for August.

3. Compute the variable overhead rate and efficiency variances for August.

(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

In an approximately 500-word response, address the following issues/questions:

Cash is the lifeblood of any business, and without it survival is very unlikely.

• Do you agree or disagree?
• Explain what information a statement of cash flows provides to supplement a statement of financial position and an income statement.
• Why is there still some controversy surrounding published statements of cash flows?
• How important are such statements in terms of the financial reporting requirements within YOUR country?

How are banks and other financial services use technology in predictive analytics, the problems they face and their possible solutions

You are in a reunion of high school classmates. There is much food, and the drinks flow freely. Many of your classmates join the sciences and engineering fields; some have become doctors, others are lawyers, and still other are entrepreneurs. You alone joined the accountancy profession. Consider the following: 1. Gelai, a classmate since grade school (now a doctor) commended on your line of work: " I don't know anything about how an auditor perform his/her work. It seems that there is no scientific approach to the process." She continued, "all I know is that you auditors are on the lookout for fraud...other auditors prepare income tax returns for us professionals." 2. Lotlot, one of your teammates in spelling competition, is now a high-school teacher. She says, "audits? It's not surprising that you became an accountant...auditor...whatever. With all your talents in mathematics..." 3. Owell is now a lawyer. He was the class salutatorian, and has a very competitive nature. He heard Lotlot's remarks and said, "My friend,as class valedictorian you should have joined a more useful profession! Look at me. I serve the public. Look at you... audits? Bah! They are NOT productive. An audit has nothing to do with GNP or the public interest. Rather than create value, auditors like you simply check on someone what someone else has done." Requirement: Each situation illustrates a common misconception about accountants and auditor. Prepare a proper reply to each classmate.

On July 2, Eagle Ltd. shipped merchandise costing $360,000 on consignment to Goldfinch Stores. Eagle paid freight costs of $10,000. Upon sale, Goldfinch will receive a 12% commission. At the end of the month, Goldfinch notifies that 50% of the merchandise has been sold for $560,000, and send Eagle the money via electronic transfer.

Prepare the journal entries for Eagle Ltd. to account for this consignment in the month of July.

Liam and Katano formed a partnership to open a sushi restaurant by investing $110,000 and $120,000, respectively. They agreed to share profit based on an allocation to Liam of an annual salary allowance of $165,000, interest allowance to both Liam and Katano equal to 12% of their beginning-of-year capital balance, and any balance based on a 1:3 ratio, respectively. At the end of their first year, December 31, 2020, the Income Summary had a credit balance of $45,000. Liam withdrew $22,000 during the year and Katano $39,000.

Required:
1. Determine each partner’s share if the first-year profit was $45,000. Prepare the entry to close the Income Summary on December 31, 2020. (Leave no cell blank. Enter "0" when the answer is zero. Negative answers should be indicated by a minus sign.)

2. Calculate the balance in each partner’s capital account at the end of their first year. (Negative answers (i.e. debit account balances) should be indicated by a minus sign.)

depreciation expense

Stacey Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2021, an asset account for the company showed the following balances: Manufacturing equipment $ 67,800 Accumulated depreciation through 2020 45,000 In early January 2021, the following expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment $ 950 Major overhaul of the equipment 9,700 The equipment is being depreciated on a straight-line basis over an estimated life of 14 years, with a $4,800 estimated residual value. The company’s fiscal year ends on December 31. Required: 1. Calculate the depreciation expense for the manufacturing equipment for 2020.

Cavco Industries of Phoenix Arizona produces manufactured housing for the 21st century that rivals the construction and design elements found in traditional site built homes. In business for over 40 years Cavco sells manufactured homes, camping cabins, and park model homes under 400 square feet in size and commercial buildings. The company has several hundred floor plans to choose from or it can customize floor plans to fit the design specifications of the buyer. Sales have risen about 7% annually over the past 3 years.

Cavco relies on lean manufacturing and just in time inventory management techniques at its 3 manufacturing facilities. With thousands of stock keeping units direct materials inventory turns over every week. The most expensive inventory items consist of wood and wood products, steel, drywall abd petroleum based products. There are about 50 different stations in the main assembly lines. On Cavco's production floor. They are fed daily by subsidiary job shops close by such as the in house cabinet making shop and flooring shop. Nothing is ever made to stock so the bills of materials coming from independent dealer orders drive the release of direct materials onto the floor at each station in assembly.

At each plant the manager schedules production so tightly that there is rarely downtime at any station in an assembly line. Efficiency is so consistent that budgeted direct materials and direct manufacturing labor usually match the actual costs incurred at month end. Instead of computing a budgeted overhead allocation rate at the beginning of the year and adjusting at year end the company applies actual plant overhead. This consists of
1-Utilities
2-Engineering
3-Purchasing
4-Plant manager salaries

This is done each month so managers can see how they did and make adjustments before the next month's production activities get too far along. Once each home section is completed it is driven out of the plant by independent shippers title passes to the dealer sales revenue is booked and the home is taken to its destination. With no unsold finished goods in stock at month end the only materials to account for each month are those not yet released into production and those in work in process inventory.

QUESTION 1
Assume Cavco has dedicated one of its manufacturing plants to building camping cabins. Budgeted annual fixed manufacturing costs for this facility are $2,000,000 and include the items listed in the case. The amount will remain the same even though shifts per day and days worked per week may fluctuate. The master budget for 2006 is based on one shift production of 2 camping cabins per day over a 4 day work week. The plant is closed on Mondays for building and equipment maintenance. The company also shuts down production for one week in July and one week at the end of December. Normal capacity utilization is based on one shift production of 2 cabinets per day 5 days per week throughout the year. If every camping cabin built in this plant takes the same amount of time to complete what is the 2006 budgeted fixed manufacturing overhead cost rate per cabin under theoretical capacity, practical capacity, normal capacity utilization, and master budget capacity utilization?

Answer the following questions. Please type using a word processing program and bring a printed copy to class. Write as much or as little as you feel necessary to answer each question to the best of your ability. You may use all available resources to complete this case – e.g., lecture slides, notes, your book, and the Accounting Standards Codification. Collaboration with others in your group is allowed to the extent that it is helpful. How you work together is up to you – however, I encourage everyone in the group to take at least some part for every question. Please turn in only one finished assignment for each group. Use appropriate citations where relevant and according to your professional judgment. For questions requiring use of the codification, please use the following style:

1) Cite the ASC down to the Paragraph. For example, (ASC 330-10-05-01)

2) Copy-paste the paragraph you cite from the codification into the word document.

3) Interpret the codification paragraph into ‘plain English’ as best you can. In other words, how would you explain the appropriate accounting treatment to a colleague, boss, or business partner who has a basic understanding of accounting? You may (and are encouraged to) use debits and credits or t-accounts to illustrate the accounting if appropriate.

After a decade or so in mining, you decide to change jobs because you wanted to do nothing with anything related to tax or tax accounting ever again and in a regulated industry, there was too much of this. A few years later, however, the controller comes to you with a comment letter from the SEC which expresses concern about how your company reports its current and deferred income tax accounts in its financial reports. You look as white as a sheet because you hoped to never do tax accounting again. Find and interpret the appropriate ASC guidance for how to initially measure deferred taxes. (You may need to cite more than one ASC paragraph.)

Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: