Pina Colada Corp. had the following long-term receivable account balances at December 31, 2016.

Transactions during 2017 and other information relating to Pina's long-term receivables were as follows:

Determine the amount of interest income that should be reported in 2017. (Do not round intermediate calculations. Round answers to 0 decimal places, e.g. 8,971.)

Determine the portion of the note and any interest that should be reported in current assets at December 31, 2017.

Determine the portion of the note that should be reported as a long-term investment at December 31, 2017.

Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Pina's statement of financial position at December 31, 2017.

Determine the total interest income from the long-term receivables that would appear on Pina's income statement for the year ended December 31, 2017.

Total interest income for year ended 12/31/17

1. The following are errors or fraud and other irregularities that have occurred in Fresh Foods Grocery Store Ltd., a wholesale and retail grocery company.

   1. The incorrect price was used on sales invoices for billing shipments to customers because the incorrect price was entered into a computer file.

   2. A vendor’s invoice was paid twice for the same shipment. The second payment arose because the vendor sent a duplicate copy of the original two weeks after the payment was due.

   3. Employees in the receiving department stole some sides of beef. When a shipment of meat was received, the receiving department filled out a receiving report and forwarded it to the accounting department for the amount of goods actually received. At that time, two sides of beef were put in an employee’s pickup truck rather than in the storage freezer.

   4. During the physical count of inventory of the retail grocery, one counter wrote down the wrong description of several products and miscounted the quantity.

   5. A salesperson sold several hundred kilograms of lamb at a price below cost because she did not know that the cost of lamb had increased in the past week.

   6. On the last day of the year, a truckload of beef was set aside for shipment but was not shipped. Because it was still on hand, it was counted as inventory. The shipping document was dated the last day of the year, so it was also included as a current-year sale.

Required

1. For each error or fraud and other irregularity, identify one or more types of controls that were absent.

2. For each error or fraud and other irregularity, identify the objectives that have not been met.

3. For each error or fraud and other irregularity, suggest a control to correct the deficiency.

describe an effective accounting informaion system and explain managements role in it

Please explain about Purchases Discounts and Purchases Returns and Allowances. Please indicate the purpose of these accounts. Do they appear on the Financial Statements?

2. Please explain about Sales Discounts. Why are they necessary? Does this account appear on the Financial Statements?

3. How are sales to customers using credit cards recorded?

4. Please create an example of an Income Statement for a merchandising business.

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 10%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $110 to purchase these supplies.

For years, Worley believed that the 10% 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 $39,000 to buy from manufacturers):

Required:

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

2. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $39,000 cost of goods sold that Worley incurred serving each hospital.)

Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patents. Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is requesting a $530,000 long-term loan from Gulfport State Bank, $115,000 of which will be used to bolster the Cash account and $415,000 of which will be used to modernize equipment. The company’s financial statements for the two most recent years follow:

During the past year, the company introduced several new product lines and raised the selling prices on a number of old product lines in order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several new territories. Sales terms are 3/10, n/30. All sales are on account.

Required:

1. To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and last year:

a. The amount of working capital.

b. The current ratio.

c. The acid-test ratio.

d. The average collection period. (The accounts receivable at the beginning of last year totaled $280,000.)

e. The average sale period. (The inventory at the beginning of last year totaled $530,000.)

f. The operating cycle.

g. The total asset turnover. (The total assets at the beginning of last year were $2,510,000.)

h. The debt-to-equity ratio.

i. The times interest earned ratio.

j. The equity multiplier. (The total stockholders’ equity at the beginning of last year totaled $1,361,000.)

2. For both this year and last year:

a. Present the balance sheet in common-size format.

b. Present the income statement in common-size format down through net income.

NB: Please I need all parts to be answered

For public companies, Section 301 of the Sarbanes-Oxley Act has specific requirements for the composition and duties of the audit committee. Describe three of those requirements.

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 9%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $109 to purchase these supplies.

For years, Worley believed that the 9% 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 $33,000 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 $33,000 cost of goods sold that Worley incurred serving each hospital.)

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.