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.

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.