With the expansion of international business and global capital markets, the business community have shown an increased interest in single high-quality accounting standards. do you agree?

Tony's Tire and Auto Repair has two divisions split up by region—a Southern Division and a Northern Division. The following segmented income statement is for the most recent fiscal year ended December 31:

Tony's Tire and Auto Repair
Segmented Income Statements

Tony's Tire and Auto Repair
Segmented Balance Sheet Statements

1. Calculate average operating assets for each division. (Hint: Land held for sale is not an operating asset.)
2. Calculate ROI for each division.
3. What does the ROI tell you about each division at Tony's Tire and Auto Repair?
4. Assuming the cost of capital is 6%, calculate residual income (RI) for each division. How should this information be used to evaluate each division manager?
5. Assuming the cost of capital is still 6% and that management wants to make three adjustments to calculate EVA, apply the following adjustments:
   • Adjustment 1: Marketing costs will be capitalized and amortized over several years. On the balance sheet, average operating assets will increase by the unamortized amount of $73,500 for the Southern Division and $2,940,000 for the Northern Division. On the income statement, marketing expense for the year will be added back to operating income; marketing amortization expense for 1 year will be deducted. Assume that marketing amortization expense for the year is $31,500 for the Southern Division and $1,260,000 for the Northern Division. No adjustments will be made for previous years' marketing expenditures.
   • Adjustment 2: Land held for sale is not an operating asset and thus is deducted from average operating assets.
   • Adjustment 3: All current liabilities are noninterest bearing and thus are deducted from average operating assets.
6. Calculate EVA for each division.
7. What does the EVA show for each division?

When production of a product is started you know a % of those are going to fail and be returned to the store which you will have to credit your customer for. When you are spreading out the cost, do you add a set % to your part cost knowing that you are going to have some that fail in the field?

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 6%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $106 to purchase these supplies.

For years, Worley believed that the 6% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:

Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $38,000 to buy from manufacturers):

Required:

1. Compute the total revenue that Worley would receive from University and Memorial.

2. Compute the activity rate for each activity cost pool.

3. Compute the total activity costs that would be assigned to University and Memorial.

4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $38,000 cost of goods sold that Worley incurred serving each hospital.)

Fenny owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients, prepares bills, and performs other work-related tasks. The home office is 350 square feet and the entire house is 4,000 square feet. Fenny incurred the following home-related expenses during the year. Unless indicated otherwise, assume Fenny uses the actual expense method to compute home office expenses.

A. What amount of each of these expenses is allocated to the home office?

B. What are the total amounts of tier 1, tier 2, and tier 3 expenses, respectively, allocated to the home office?

C. If Fenny reported $2,500 of Schedule C net income before the home office expense deduction, what is the amount of her home office expense deduction and what home office expenses, if any, would she carry over to next year?

D. What is the total amount of from AGI deductions relating to the home that Fenny may deduct in the current year?

E. Assuming Fenny reported $2,500 of Schedule C income before the home office expense deduction, complete Form 8829 for Fenny’s home office expense deduction. Also assume the value of the home is $550,000 and the adjusted basis of the home (exclusive of land) is $514,821.

F. Assume that Fenny uses the simplified method for computing home office expenses. If Fenny reported $2,500 of Schedule C net income before the home office expense deduction, what is the amount of her home office expense deduction and what home office expenses, if any, would she carry over to next year?

Calculate for Movit Manufacturing in Problem 1 the financial ratios listed in the table below. Using these ratios and those provided for 2014 and 2015, conduct a short analysis of Movit’s financial health.

John West plc used cars has always hired students from the local university to wash the cars on the lot. John West is considering the purchase of an automatic car wash that would be used in place of the students. The following information has been gathered by John West's accountant to help him make a decision on the purchase:

a) Payments to students for washing cars total R15 000 per year at present.

b) The car wash would cost R21 000 installed, and it would have a 10 year useful life. John West uses straight line depreciation on all assets. The car wash would have a negligible salvage value in 10 years.

c) Annual out-of-pocket costs associated with the car wash would be: wages of students to operate the wash, keep the soap bin full and so forth, R6 300; utilites, R1 800; and insurance and maintenance , R900.

d) John West now earns a return of 20% on the funds invested in his inventory of used cars. He feels that he would have to earn an equivalent rate on the car wash for the purchase to be attractive.

Required:

1) Determine the annual savings that would be realized in cash operating costs if the car wash was purchased.

2) Calculate the simple rate of return promised by the car wash, (Hint: Note that this is a cost reduction project.) Will John West accept this project if he expects a 20% return?

3) Calculate the payback period on the car wash. John West (who has a reputation for being something of a penny-pincher) will not purchase any equipment unless it has a payback of four years or less. Will he purchase the car wash equipment?

4) Calculate ( to the nearest whole percent) the internal rate of return promised by the car wash. Based on this calculation, does it appear that the simple rate of return would normally be an accurate guide in investment decisions?

1. The cost per equivalent unit of direct materials and conversion in the Bottling Department of Beverages on Jolt Company is $0.80 and $0.20, respectively. The equivalent units to be assigned costs are as follows:

   	Equivalent Units
   	Direct Materials	Conversion
   Inventory in process, beginning of period	0	2,650
   Started and completed during the period	55,430	55,430
   Transferred out of Bottling (completed)	55,430	58,080
   Inventory in process, end of period	3,160	2,600
   Total units to be assigned costs	58,590	60,680

   The beginning work in process inventory had a cost of $3,640. Determine the cost of completed and transferred out production and the ending work in process inventory. Round answers to nearest whole dollar.

   Completed and transferred out production	$
   Inventory in process, ending	$

1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

3. Prepare an income statement.

Prepare an income statement.

Please use Microsoft excel. Using a Nested Loop, what is the equation to solve for letter grade

What is target costIng? Please provide an in-depth explanation of its benefits to an organization. More specifically, the aerospace industry.

Martinez Co. is building a new hockey arena at a cost of $2,690,000. It received a downpayment of $550,000 from local businesses to support the project, and now needs to borrow $2,140,000 to complete the project. It therefore decides to issue $2,140,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 11%.

- Prepare the journal entry to record the issuance of the bonds on January 1, 2016.

- Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method.

- Assume that on July 1, 2019, Martinez Co. redeems half of the bonds at a cost of $1,173,900 plus accrued interest. Prepare the journal entry to record this redemption.

1. Apple, Inc. has approximately $178 billion dollars in cash. Recently, they paid a quarterly cash dividend of approximately $0.52 per share. Do you think management is justified in keeping that large amount of cash rather than paying out a larger dividend?

2. Think of a business you would like to start, or maybe you already have one. Discuss the best way to finance your working capital and why.

3.  If you were to start a business, what mix of equity to debt would you be comfortable with and why?

please put the number by the answers. Thanks.