Explain how to compute the operating indicator analysis.

Room for DebateDebate 1-1

Which Body Should Set Accounting Standards in the United States?

Team Debate:

Team 1:Argue that the SEC should set accounting standards in the United States.

Team 2:Argue that the FASB should set accounting standards in the United States.

Explain what factors contributed to the development of The French Fur Trade in Wisconsin

The following information is available for the first three years of operations for Wildhorse Company: 1. Year Taxable Income 2020 $610,000 2021 460,000 2022 510,000 2. On January 2, 2020, heavy equipment costing $710,000 was purchased. The equipment had a life of 5 years and no salvage value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below: Tax Depreciation 2020 2021 2022 2023 Total $234,300 $319,500 $106,500 $49,700 $710,000 3. On January 2, 2021, $333,000 was collected in advance for rental of a building for a three-year period. The entire $333,000 was reported as taxable income in 2021, but $222,000 of the $333,000 was reported as unearned revenue at December 31, 2021 for book purposes. 4. The enacted tax rates are 20% for all years.

a-Prepare a schedule comparing depreciation for financial reporting and tax purposes.

b-Prepare a schedule of future taxable and (deductible) amounts at the end of 2021.

c-Prepare a schedule of the deferred tax (asset) and liability at the end of 2021.

d-Compute the net deferred tax expense (benefit) for 2021.

f-Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2021.

How can I improve my thesis for an essay for higher education as I only scored 20/40 in this assignment

They say I Say thesis

Although Henry Bienen has some compelling reasons regarding pursuing higher education in debate “is college for everyone” but we should study the current job market before we consider higher education. While many technical jobs require hands-on experience with interview skills but higher education might not include proper curriculum to handle such necessities for job security in the future.

Distinguish between the terms ‘wealth’ and ‘profit’.

Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year follows:

The company’s selling and administrative expenses consist of $307,500 per year in fixed expenses and $4 per unit sold in variable expenses. The $23 unit product cost given above is computed as follows:

Required:

1. Redo the company’s income statement in the contribution format using variable costing.

2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above.

variable costing net operating income ____

________________ ___________

absorption costing net operating income _____

The following are two independent situations.

Situation 1

Whoo Cosmetics acquired 12% of the 200,000 shares of common stock of Loreal Fashion at a total cost of $15 per share on Oct. 18, 2018. On Oct. 30, Loreal declared and paid $60,000 cash dividend to all stockholders. On December 31, Loreal reported net income of $122,000 for the year. At December 31, the market price of Loreal Fashion was $12 per share.

Situation 2

Peach Republic Group obtained significant influence over Old Army Corporation by buying 35% of Old Army’s 40,000 outstanding shares of common stock at a total cost of $16 per share on January 1, 2018. On June 15, Old Army declared and paid cash dividends of $58,000. On December 31, Old Army reported a net income of $100,000 for the year.

Prepare all the necessary journal entries in 2018 for Whoo Cosmetics and Peach Republic Group.

On December 1, 2018, Folks Wagon Company adopted a stock-option plan that granted options to key executives to purchase 50,000 shares of the company’s $10 par value common stock. The options were granted on January 1, 2019, and were exercisable 3 years after the date of grant if the grantee was still an employee of the company. The options expired 5 years from the date of grant. The option price was set at $35, and the fair value option-pricing model determines the total compensation expense to be $450,000.

All of the options were exercised during the year 2022: 20,000 on February 23 when the market price was $46, and 30,000 on August 8 when the market price was $85 a share.

a. Prepare the journal entries relating to the stock option plan for the years 2019, 2020, and 2021. Assume that the employee performs services equally in 2019, 2020, and 2021.

b. Prepare the journal entries that record the two events of exercising the options in 2022.

On January 5, 2018, Parker Corporation received a charter granting the right to issue 6,000 shares of $100 par value, 7% cumulative and nonparticipating preferred stock, and 60,000 shares of $10 par value common stock. It then completed these transactions:

Jan. 15th. Issued 40,000 shares of common stock at $18 per share.

Feb. 22nd. Issued to Martinez Corp. 3,000 shares of preferred stock for the following assets: equipment with a fair value of $30,000; a factory building with a fair value of $60,000; and land with an appraised value of $170,000.

July 23rd. Purchased 2,000 shares of common stock at $20 per share.

Oct. 10th. Sold the 2,000 treasury shares at $15 per share.

Dec. 31st. Declared a $0.30 per share cash dividend on the common stock and declared the preferred dividend.

Prepare all the necessary journal entries for the transactions listed above for Parker Corporation.

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:

The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 20Y2 are as follows:

ACCOUNT Land

ACCOUNT Buildings

ACCOUNT Accumulated Depreciation––Buildings

ACCOUNT Equipment

ACCOUNT Accumulated Depreciation ––Equipment

ACCOUNT Bonds Payable

ACCOUNT Common Stock $25 par

ACCOUNT Paid-In Capital in Excess of Par––Common Stock

ACCOUNT Retained Earnings

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows.

Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold.

Barbara Cheney, Pittman’s controller, has just prepared the company’s budgeted income statement for next year as follows:

*Primarily depreciation on storage facilities.

As Barbara handed the statement to Karl Vecci, Pittman’s president, she commented, “I went ahead and used the agents’ 15% commission rate in completing these statements, but we’ve just learned that they refuse to handle our products next year unless we increase the commission rate to 20%.”

“That’s the last straw,” Karl replied angrily. “Those agents have been demanding more and more, and this time they’ve gone too far. How can they possibly defend a 20% commission rate?”

“They claim that after paying for advertising, travel, and the other costs of promotion, there’s nothing left over for profit,” replied Barbara.

“I say it’s just plain robbery,” retorted Karl. “And I also say it’s time we dumped those guys and got our own sales force. Can you get your people to work up some cost figures for us to look at?”

“We’ve already worked them up,” said Barbara. “Several companies we know about pay a 7.5% commission to their own salespeople, along with a small salary. Of course, we would have to handle all promotion costs, too. We figure our fixed expenses would increase by $2,550,000 per year, but that would be more than offset by the $3,400,000 (20% × $17,000,000) that we would avoid on agents’ commissions.”

The breakdown of the $2,550,000 cost follows:

“Super,” replied Karl. “And I noticed that the $2,550,000 equals what we’re paying the agents under the old 15% commission rate.”

“It’s even better than that,” explained Barbara. “We can actually save $78,200 a year because that’s what we’re paying our auditors to check out the agents’ reports. So our overall administrative expenses would be less.”

“Pull all of these numbers together and we’ll show them to the executive committee tomorrow,” said Karl. “With the approval of the committee, we can move on the matter immediately.”

Required:

1. Compute Pittman Company’s break-even point in dollar sales for next year assuming:

a. The agents’ commission rate remains unchanged at 15%.

b. The agents’ commission rate is increased to 20%.

c. The company employs its own sales force.

2. Assume that Pittman Company decides to continue selling through agents and pays the 20% commission rate. Determine the dollar sales that would be required to generate the same net income as contained in the budgeted income statement for next year.

3. Determine the dollar sales at which net income would be equal regardless of whether Pittman Company sells through agents (at a 20% commission rate) or employs its own sales force.

4. Compute the degree of operating leverage that the company would expect to have at the end of next year assuming:

a. The agents’ commission rate remains unchanged at 15%.

b. The agents’ commission rate is increased to 20%.

c. The company employs its own sales force.

Use income before income taxes in your operating leverage computation.

Determine the dollar sales at which net income would be equal regardless of whether Pittman Company sells through agents (at a 20% commission rate) or employs its own sales force. (Do not round intermediate calculations.)

Compute the degree of operating leverage that the company would expect to have at the end of next year assuming: (Use income before income taxes in your operating leverage computation.) (Round your answers to 2 decimal places.)

During the month, a company enters into the following transactions:

• Borrows $8,750 of cash from the bank by signing a formal agreement to repay the loan in 2 years.
• Buys $6,900 of new equipment on account.
• Pays off $4,900 of accounts payable.
• Pays off $2,450 of notes payable.

Required:

1. Show the effect of these transactions on the basic accounting equation.

2. Prepare the journal entries that would be used to record the transactions.

You are invited to design a vehicle identification number (VIN) system for the vehicles sold in the U.S.

The VIN number should reflect: a. the vehicle’s make, model, and model year; b. the country, state/province, and assembly plant where the vehicle is built; c. the sequence number of the vehicle.

Please EXPLAIN your design of this VIN number system with appropriate examples.