You are the Accountant for Duke Street, Inc. and your boss asks you to provide the bank with a profit forecast for the coming year. Sales and profitability have both been trending downward over the last five years. Technological advancements have made the current product less attractive. Duke has developed a new product consistent with their perceptions of consumer behavior. The company is requesting a loan from the bank to launch the new product; the loan is very necessary. The forecast that you provide to the bank will determine whether or not the bank issues the much needed loan.

Your boss is convinced that profits will be at least $500,000 – anything less than $500,000 and the bank will not approve the loan. Your analysis indicates three possible outcomes:

Outcome 1: If sales of the new product are extraordinary, then profits will exceed $500,000.

Outcome 2: If sales of the new product are modest, then the profits will be $100,000. This is most likely to occur.

Outcome 3: If the sales of the new product fail, then the company will experience a loss of $600,000

If the bank does not grant the loan, then the new product will not launch and bankruptcy is a real possibility for the company.

REQUIRED:

Include at least two sources, appropriately cited and referenced.

NOTE: The following questions are not in any particular order. ORGANIZE your discussion in a logical manner.

Discuss the ethical implications and demonstrate your decision-making processes for the above scenario. Below are questions that may help guide your discussion. The questions are a guide (a sentence or two answering each question is insufficient). You should provide a well-organized thoughtful discussion of the ethical situation and the business/organizational problem that the company faces.   

What ethical dilemma does the accountant face?

What business problem(s) does the company have?

Who are the potential stakeholders and how might they be affected by the decision of the accountant?

What choices does the accountant have? Evaluate the choices, i.e. who benefits or who is hurt by the choice(s).

What action would you recommend, i.e. how do you believe the business problem should be resolved? How should the ethical dilemma be resolved?

Going forward, what should the company do regarding organizational ethics?  

Shown below is activity for one of the products of Weasel:

January 1 balance, 220 units at $50 for a total of $11,000

Purchases: January 10-200 units at $42

                     January 20-500 units at $55

Sales: January 12-350 units

             January 28-425 units

a. Compute the ending inventory and cost of goods sold assuming Weasel uses FIFO.

b. Compute the ending inventory and cost of goods sold assuming Weasel uses LIFO and perpetual inventory system.

c. Compute the ending inventory and cost of goods sold assuming Weasel uses average cost and a perpetual inventory system.

d. Compute the ending inventory and cost of goods sold assuming Weasel uses LIFO and a periodic inventory system.

e. Compute the ending inventory and costs of goods sold assuming Weasel uses average cost and periodic inventory system.

Please Show all Work

Slide 22-12

Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company’s fiscal year-end. The 2017 balance sheet disclosed the following:

Current assets;

          Receivables, net of allowance for uncollectible accounts of $33,000                $447,000

During 2018, credit sales were $1,765,000, cash collections from customers $1,845,000, and $38,000 in accounts receivable were written off. In addition, $3,300 was collected from a customer whose account was written off in 2017. An aging of accounts receivable at December 31, 2018, reveals the following:

Required:

1. Prepare summary journal entries to account for the 2018 write-offs and the collection of the receivable previously written off.
2. Prepare the year-end adjusting entry for bad debts according to each of the following situations:

1. Bad debt expense is estimated to be 4% of credit sales for the year.
2. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable.
3. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable.

3. For situations (a)-(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2018 balance sheet?

Complete the following questions by entering your answers below.

1. Prepare summary journal entries to account for the 2018 write-offs and the collection of the receivable previously written off. (If no entry is required for a transaction/event, write “No journal entry required” in the first account title.

1. Record accounts receivable written off during the year 2018.
2. Record entry to reinstate an account receivable previously written off.
3. Record collection of an account receivable previously written off.

2. Prepare the year-end adjusting entry for bad debts.

1. Bad debt expense is estimated to be 4% of credit sales for the year.
2. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable.
3. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable.

Note: Enter debits before credits.

Net account receivable reported

a.______________________

b.______________________

c.______________________

rake Corporation is reviewing an investment proposal. The initial cost and estimates of the book value of the investment at the end of each year, the net cash flows for each year, and the net income for each year are presented in the schedule below. All cash flows are assumed to take place at the end of the year. The salvage value of the investment at the end of each year is equal to its book value. There would be no salvage value at the end of the investment’s life. Investment Proposal Year Initial Cost and Book Value Annual Cash Flows Annual Net Income 0 $105,600 1 69,300 $44,900 $8,600 2 42,500 40,600 13,800 3 20,600 35,200 13,300 4 6,700 29,600 15,700 5 0 24,200 17,500 Drake Corporation uses an 11% target rate of return for new investment proposals. Click here to view PV table. (a) What is the cash payback period for this proposal? (Round answer to 2 decimal places, e.g. 10.50.) Cash payback period years (b) What is the annual rate of return for the investment? (Round answer to 2 decimal places, e.g. 10.50.) Annual rate of return for the investment % (c) What is the net present value of the investment? (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value $

On January 1, 2018, Instaform, Inc., issued 14% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2037 (20 years). The market yield for bonds of similar risk and maturity is 16%. Interest is paid semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1-a. Determine the price of the bonds at January 1, 2018.
1-b. Prepare the journal entry to record their issuance by Instaform.
2-a. Assume the market rate was 12%. Determine the price of the bonds at January 1, 2018.
2-b. Assume the market rate was 12%. Prepare the journal entry to record their issuance by Instaform.
3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.

• Req 1A
• Req 1B
• Req 2A
• Req 2B
• Req 3

Determine the price of the bonds at January 1, 2018. (Enter your answer in whole dollars.)

2B

repare the journal entry to record their issuance by Instaform. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

2A

Assume the market rate was 12%. Determine the price of the bonds at January 1, 2018. (Enter your answer in whole dollars.)

2B

ransaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

3

Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

On September 1, 2016, Carolina Electronics Company has 1,000 Blu-ray players ready for sale. On October 1, 2016, 870 are sold, on account, at $125 each with a 1-year assurance-type warranty. Carolina estimates that the warranty cost on each Blu-ray player sold will probably average $8 per unit. During the final 3 months of 2016, Carolina incurred warranty costs of $3,800, and in 2017 warranty costs were $3,160. Required: 1. Prepare the journal entries for the preceding transactions. 2. Show how the preceding items would be reported on the December 31, 2016, balance sheet. 3. Prepare the journal entries for the preceding transactions using the modified cash basis method. 4. Next Level Which method produces the better measure of income? Why?

Based on your understanding of how chains are managed, would you agree or disagree that an outlet of a large department store chain should be treated as an investment center? What about the maintenance department within that outlet? What about a single department within the store?

what is the business model of Indian oil corporation?

The Sweater Company produces sweaters. The company buys raw wool on the market and processes it into wool yarn from which the sweaters are woven. One spindle of wool yarn is required to produce one sweater. The costs and revenues associated with the sweaters are given below:

                                                                                         Per Sweater

Originally, all of the wool yard was used to produce sweaters, but in recent years a market has developed for the wool yarn itself. The yarn is purchased by other companies for use in production of wool blankets and other wool products. Since the development of the market for the wool yarn, a continuing dispute has existed in the Sweater Company as to whether the yarn should be sold simply as yarn or processed into sweaters. Current cost and revenue data on the yarn are given below:

                                                                                          Per Spindle

The market for sweaters is temporarily depressed, due to unusually warm weather. This has made it necessary for the company to discount the selling price of the sweaters to P30 from the normal P40 price. Since the market for wool yarn has remained strong, the dispute has again surfaced over whether the yarn should be sold outright rather than processed into sweaters. The sales manager thinks that the production of sweaters should be discontinued; she is upset about having to sell sweaters at a P2,50 loss when the yarn could be sold for a P4.00 profit. However, the production superintendent is equally upset at the suggestion that he close down a large portion of the factory, He argues that the company is in the sweater business, not the yarn business, and that the company should focus on its core strength.

Due to the nature of the production process, virtually all of the manufacturing overhead costs are fixed and would not be affected even if sweaters were discontinued. Manufacturing overhead is assigned to products on the basis of 150% of direct labor cost.

Would you recommend that the wool yearn be sold outright or processed into sweaters?

a. Sold outright because profit would decrease by P2.50 per sweater

b. Processed into sweaters because profit would increase by P6.20 per sweater

c. Processed further because profit would increase by P0.80 per sweater

d. Processed into sweaters because profit would increase by P2.20 per sweater

How much fixed overhead per unit is relevant to the production of sweaters?

a. P5.40

b. P8.70

c. P14.10

d. P0

In 2018, Susan (44 years old) is a highly successful architect and is covered by an employee-sponsored plan. Her husband, Dan (47 years old), however, is a Ph.D. student and unemployed. Compute the maximum deductible IRA contribution for each spouse in the following alternative situations.

a. Susan’s salary and the couple’s AGI before any IRA contribution deductions is $193,000. The couple files a joint tax return.

b. Susan’s salary and the couple’s AGI before any IRA contribution deductions is $123,000. The couple files a joint tax return.

c. Susan’s salary and the couple’s AGI before any IRA contribution deductions is $83,000. The couple files a joint tax return.

d. Susan’s salary and her AGI before the IRA contribution deduction is $83,000. Dan reports $5,000 of AGI before the IRA contribution deduction (earned income). The couple files separate tax returns.

Its Cultural intelligence needed?

Give an example of success or failure at the international level

1. On January 1, 2014, Giamartino, Inc. issues a 4-year bond with a face value of $100,000. The semi-annual interest payments of $6,000 are due July 1 and January 1 of each year.

What is the present value of the bond on the date of issuance?

The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December 31, 2019, the firm's general ledger contained the accounts and balances that appear below.

ADJUSTMENTS

a.–b. Merchandise inventory on December 31, 2019, is $12,821.

3. During 2019, the firm had net credit sales of $40,000; the firm estimates that 0.7 percent of these sales will result in uncollectible accounts.
4. On December 31, 2019, an inventory of the supplies showed that items costing $300 were on hand.
5. On October 1, 2019, the firm signed a six-month advertising contract for $900 with a local newspaper and paid the full amount in advance.
6. On January 2, 2018, the firm purchased store equipment for $8,400. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $650.
7. On January 2, 2018, the firm purchased office equipment for $1,900. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $250.
8. On December 31, 2019, the firm owed salaries of $1,880 that will not be paid until 2020.
9. On December 31, 2019, the firm owed the employer’s social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $1,880 of accrued wages.
10. On December 31, 2019, the firm owed federal unemployment tax (assume 0.6 percent) and state unemployment tax (assume 5.4 percent) on the entire $1,880 of accrued wages.

Required:

1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 2019.
2. Enter the adjustments above in the Adjustments section of the worksheet.
3. Complete the worksheet.

Analyze:
By what amount were the assets of the business affected by adjustments?

Ralph Rover is a small company that manufactures special heavy equipment for use in under water oil fields. The line workers are specially trained and earn $35/hour. The company uses job order costing and applies manufacturing overhead on the basis of labor hours. At the beginning of the month, the following estimates were made:

Estimated Manufacturing Overhead Costs -              $360,000

Estimated Direct Labor Hours -                                          900

Beginning balances for inventory accounts were as follows:

            Raw Materials -                                  $30,000

            Work in Process -                               $61,000 Job 411

            Finished Goods -                                 $290,000 Job 410

The following transactions took place during the month (all purchases and services were acquired on account):

1. $355,000 in raw materials were purchased
2. Direct materials were requisitioned for use in Job 412, $60,000.
3. Direct materials were requisitioned for use in Job 413, $90,000.
4. The factory incurred $45,000 in utility bills.
5. Headquarters incurred $15,000 in utility bills.
6. The record for Job 411 indicated that 200 labor hours were used.
7. The record for Job 412 indicated that 335 labor hours were used.
8. The record for Job 413 indicated that 390 labor hours were used.
9. Jobs 411, 412 and 413 were completed during the month.
10. Job 410, 411 and 413 were sold during the month for $1,100,000.
11. Factory janitor salaries for the month were $5,000.
12. The factory managers’ salaries totaled $160,000.
13. Indirect materials requisitioned totaled $35,000.
14. $100,000 of depreciation on the factory equipment was accrued this month.
15. Advertising costs for the month were $85,000.

Use MS Excel to show t-accounts or journal entries (your choice) to record the previous transactions. Also answer the following 8 questions in the spreadsheet. Then upload the file to question.

1. How much overhead was allocated to job 412? __________________________
2. What is the Cost of Goods Manufactured? _______________________________
3. What is the Cost of Goods Sold (before adjusting entries)? ____________________
4. What is the period cost? ____________________________
5. How much product cost will show up on the final income statement? __________
6. How much overhead was actually incurred this period?___________________________
7. What is the net income for the period? _________________________________
8. What is the ending balance for the Finished Goods account? ________________