Presented below are several facts related to ABC Company. Assume that no mention of these facts was made in the financial statements and the related notes. Your job is to determine the appropriate accounting treatment and disclosure to the notes to the financial statements. You must be specific on what details should be included to the notes of the financial statements.

1. It is probable the contingency will result in a $100,00 loss, but it is reasonably possible the loss could be $500,000.
2. Equipment purchases of $275,000 were partly financed during the year through the issuance of a $150,000 notes payable. The company offset the equipment against the notes payable and reported plant assets at $125,000.
3. ABC Company has reported its ending inventory at $2,500,000 in the financial statements. No other information related to inventories is presented in the financial statements and related notes.
4. ABC company changed its method of valuing inventories from weighted-average to FIFO. No mention of this change was made in the financial statements.

1. An individual who is eligible to be claimed as a dependent on another's return and has $1,000 of earned income may claim a standard deduction of $1,350.

1. True

   False

1. Andres and Lakeisha are married and file jointly. Andres is 72 years old and in good health. Lakeisha is 62 years old and blind. What amount of standard deduction can Andres and Lakeisha claim in 2019?

   		$27,700.
   		$25,700.
   		$27,000.
   		$25,850.
   		None of the choices are correct.

1. Angelena files as a head of household. In 2019, she reported $53,450 of taxable income, including a $10,000 qualified dividend. What is her gross tax liability, rounded to the nearest whole dollar amount? (Use the Tax rate schedules, long-term capital gains tax brackets.)

   		$5,042
   		$4,937
   		$6,437
   		$6,137

1. Assuming the kiddie tax applies, what amount of a child's income is subject to the kiddie tax?

   		The net unearned income
   		Taxable income less the standard deduction
   		All of the unearned income
   		All of the child's income

Internal Rate of Return

A project is estimated to cost $537,280 and provide annual net cash flows of $73,000 for 10 years.

Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above.

A comparative balance sheet and an income statement for Burgess Company are given below:

Burgess also provided the following information:

1. The company sold equipment that had an original cost of $30 million and accumulated depreciation of $16 million. The cash proceeds from the sale were $16 million. The gain on the sale was $2 million.

2. The company did not issue any new bonds during the year.

3. The company paid a cash dividend during the year.

4. The company did not complete any common stock transactions during the year.

Required:

Using the indirect method, prepare a statement of cash flows for the year. (Enter your answers in millions not in dollars. List any deduction in cash and cash outflows as negative amounts.)

Joyner Company’s income statement for Year 2 follows:

Its balance sheet amounts at the end of Years 1 and 2 are as follows:

Equipment that had cost $30,500 and on which there was accumulated depreciation of $11,400 was sold during Year 2 for $25,100. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock.

Required:

1. Using the indirect method, compute the net cash provided by/used in operating activities for Year 2.

2. Prepare a statement of cash flows for Year 2.

3. Compute the free cash flow for Year 2.

Using the indirect method, compute the net cash provided by/used in operating activities for Year 2. (List any deduction in cash outflows as negative amounts.)

Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.)

compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.)

Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently, each of its five salespeople earns a 12% commission on the units they sell for $100 each, plus a fixed salary of $41,100 per person. Glade hopes that by increasing commissions to 17% and decreasing each salesperson’s salary to $21,700, sales will increase because salespeople will be more motivated. Currently, sales are 17,000 units. Glade’s other fixed costs, NOT including the salespeople’s salaries, total $595,000. Glade’s other variable costs, NOT including commissions, total $16 per unit.  

a. What is the current profit?

b. What is the current break-even point in units? (Round your answer to the nearest whole number.)

  

c. What would the break-even point in units be if commissions are increased and salaries decreased? (Round your answer to the nearest whole number.)

d. If sales increase by 9,000 units, what will profit be under the new plan?

e. At what sales level would Glade be indifferent between the lower-commission plan and the higher-commission plan?

Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6.80, and each clock sells for $17.00. The company’s fixed costs total $7,446.    

How many units must Juniper sell to earn a profit of at least $6,834?

Explain why it is important for the board of directors to have a mixture of executive and non-executive members.

Given the following information for Nugget Corporation, answer the questions below.

November December January February March Sales $300,000 $250,000 $275,000 $325,000 $350,000

Cash collected in month of sale 10% Credit collections: Collected in month of sale 10% Collected in month following the sale 75% Collected in second month following the sale 15%

Each question should have one amount in the answer field.

You must format your answers as follows: $x,xxx

1 Total collections from cash sales for the quarter ending March 31, 2018.

2 Total collections from credit sales for the quarter ending March 31, 2018.

Bank Reconciliation The Chicago Scooter Company's bank statement for the month of June indicated a balance of $10,500. The company's cash account in the general ledger showed a balance of $8,670 on June 30. Other relevant information includes the following:

1. Deposits in transit on June 30 total $7,800.
2. The bank statement shows a debit memorandum for a check printing charge of $60.
3. Check number 160 payable to Simon Company was recorded in the accounting records for $372 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $54 credit balance and the check to them should have been $426.
4. Outstanding checks as of June 30 totaled $8,700.
5. Check No. 176 was correctly written and paid by the bank for $609. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $735.
6. The bank returned a NSF check in the amount of $1,026.
7. The bank included a credit memorandum for $1,890 representing a collection of a customer's note. The principle portion was $1,800 and the interest portion was $90. The interest had not been accrued.

Required
a. Prepare the June bank reconciliation for Chicago Scooter Company.
b. Prepare any necessary adjusting entries.

aura Drake wishes to estimate the value of an asset expected to provide cash inflows of

$ 3 comma 500$3,500

for each of the next 4 years and

​$14 comma 77114,771

in 5 years. Her research indicates that she must earn

44​%

on​ low-risk assets,

88​%

on​ average-risk assets, and

1616​%

on​ high-risk assets.

a.  Determine what is the most Laura should pay for the asset if it is classified as​ (1) low-risk,​ (2) average-risk, and​ (3) high-risk.

b.  Suppose Laura is unable to assess the risk of the asset and wants to be certain​ she's making a good deal. On the basis of your findings in part

a​,

what is the most she should​ pay? Why?

c. All else being the​ same, what effect does increasing risk have on the value of an​ asset? Explain in light of your findings in part

a.

a. ​ (1) The most Laura should pay for the asset if it is classified as​ low-risk is

​$nothing.

​(Round to the nearest​ cent.)

​(2) The most Laura should pay for the asset if it is classified as​ average-risk is

​$nothing.

​ (Round to the nearest​ cent.)

​(3) The most Laura should pay for the asset if it is classified as​ high-risk is

​$nothing.

​(Round to the nearest​ cent.)

b.  Suppose Laura is unable to assess the risk of the asset and wants to be certain​ she's making a good deal. On the basis of your findings in part

a​,

the most she should pay is

​$nothing.

​(Round to the nearest​ cent.)

c. All else being the​ same, what effect does increasing risk have on the value of an​ asset? Explain in light of your findings in part

a.

​(Select the best answer​ below.)

A.

By increasing the risk of cash flows received from an​ asset, the required rate of return​increases, which increases the value of the asset.

B.

By increasing the risk of cash flows received from an​ asset, the required rate of return​increases, which reduces the value of the asset.

C.

By increasing the risk of cash flows received from an​ asset, the required rate of return​decreases, which reduces the value of the asset.

The Landers Corporation needs to raise $1.60 million of debt on a 5-year issue. If it places the bonds privately, the interest rate will be 10 percent. Thirty thousand dollars in out-of-pocket costs will be incurred. For a public issue, the interest rate will be 11 percent, and the underwriting spread will be 2 percent. There will be $140,000 in out-of-pocket costs. Assume interest on the debt is paid semiannually, and the debt will be outstanding for the full 5-year period, at which time it will be repaid. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a. For each plan, compare the net amount of funds initially available—inflow—to the present value of future payments of interest and principal to determine net present value. Assume the stated discount rate is 16 percent annually. Use 8.00 percent semiannually throughout the analysis. (Disregard taxes.) (Assume the $1.60 million needed includes the underwriting costs. Input your present value of future payments answers as negative values. Do not round intermediate calculations and round your answers to 2 decimal places.)
  

Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $215,500, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of $3 million is received from sale of the assets?

Distribution of proceeds on liquidation:

Distribution to general creditors:

The remaining $ will go to the common stockholders.

what is the flowchart in RAPTOR for the following:

Write a program that allows a tax accountant to compute personal income tax. Your program will ask for a filing status (0 for single, 1 for married filing jointly, 2 for married filing separately) and a taxable income. The program will compute the tax. Please use the following chart to find the tax rate to use to compute the tax:  (0) Single: o $0 - $33,950 --> 10% o $33,951 - $171,550 --> 25% o $171,551 + --> 33%  (1) Married Filing Jointly: o $0 - $67,900 --> 10% o $67,901 - $208,850 --> 25% o $208,850 + --> 33%  (2) Married Filing Separately: o $0 - $38,950 --> 10% o $38,951 - $104,425 --> 25% o $104,426 + --> 33% The program should run and allow for as many entries as the tax accountant wants to enter. It will process the personal income tax for each person as well as calculate the average income tax for all the individuals entered. The program

Need Income Statement Need Statement of Retained Earnings, Balance Sheet, Closing Entries

ABC Corporation Unadjusted Trial Balance December 31, 2016 Debit Credit Cash 759,444 Accounts receivable 442,120 Allowance for doubtful accounts - Inventory Allowance to Reduce Inventory to NRV - Purchases 247,000 Prepaid insurance 6,750 Land 88,000 Building 37,500 Accumulated depreciation: building 1,150 Equipment 21,600 Accumulated depreciation: equipment 9,000 Patent 50,000 Accounts payable 88,851 Notes payable 40,000 Income taxes payable 99,000 Unearned rent revenue 13,500 Bonds Payable 700,000 Premium on Bonds Payable 56,774 Common stock 125,000 PIC In Excess of Par-Common Stock 40,000 Retained earnings Treasury stock 20,000 Dividends 28,000 Sales Revenue 790,000 Advertising expense 9,240 Wages expense 62,150 Office expense 28,500 Depreciation expense 10,150 Utilities expense 33,571 Insurance expense 20,250 Income taxes expense 99,000 $1,963,275 $1,963,275

ABC Corporation Adjusted Trial Balance December 31, 2016 Debit Credit Cash 875,444 Accounts Receivable 442,120 Inventory 100,000 Purchases - - Pre-Paid Insurance 4,500 Land 88,000 Allowance for Doubtful Accounts 75,000 Allowance to reduce Inventory to NRV - Bonds Payable $695,271 Premium on Bonds Payable 56,774 Building 37,500 Accumilated Deprication-Building 1,265 Equipment 21,600 Accumilated Deprication-Equipment 9,900 Patent 45,000 Account Payable 88,851 Notes Payable 40,000 Income Tax Payable 99,000 Unearned Rent Revenue 9,000 Common Stock 135,000 Retained Earnings - Dividends 28,000 PIC in Excess of Par - Common Stock 130,000 Sales Revenue 790,000 Advertising Expense 9,240 Wages Expense 67,150 Office Expense 28,500 Deprication Expense 11,165 Utilities Expense 33,571 Treasury Stock 10,000 Insurance Expense 22,500 Income Tax Expense 99,000 Rent Revenue 4,500 Wages Payable 5,000 Interest Expense 30,571 Interest Payable 35,300 Loss on Impairment 5,000 Cost of Goods Sold 147,000 Bad Debt Expense 75,000 PIC from Treasury Stock 6,000 Total 2,180,861 2,180,861

can't be completed until Income Statement is done, Income before Income Taxes

Corporate taxes are due in four estimated quarterly payments on April 15, June 15, September 15, and December 15. However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full on the return's March 15, 2017 due date. ABC's income tax rate is 35%. The entire year's income tax expense was estimated at the beginning of 2016 to be $108,000, so January through November income tax expense recognized amounts to $99,000 (11/12 months). Since we are assuming estimates are not made during the year, the balance in Income taxes payable represents income tax accrued for January through November. Assume no deferred tax assets or deferred tax liabilities. Based on the income before income taxes figure from the income statement, calculate and record December's income tax expense adjustment so that the entire year's tax expense is correct (i.e. the difference between total income tax expense and the amount already accrued through November).

Some Figures to help out along the way -Check figure 1: Income from operations = $395,874. -Check figure 2: Income before income taxes = $361,403. -Check figure 3: Total Current Assets at 12/31/16 = $1,343,664. -Check figure 4: Retained Earnings at 12/31/16 = $206,912. -Check figure 5: Total Stockholders' Equity at 12/31/16 = $467,912. -Check figure 6: Total Liabilities at 12/31/16 = $1,056,687. If your need anything else please let me know