Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,100 per month plus $0.07 per car washed. The company expected to wash 8,200 cars in August and to collect an average of $6.60 per car washed. The company actually washed 8,300 cars.

The actual operating results for August appear below.

Compute the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Problem 6-24 Companywide and Segment Break-Even Analysis; Decision Making [LO6-4, LO6-5] Toxaway Company is a merchandiser that segments its business into two divisions—Commercial and Residential. The company’s accounting intern was asked to prepare segmented income statements that the company’s divisional managers could use to calculate their break-even points and make decisions. She took the prior month’s companywide income statement and prepared the absorption format segmented income statement shown below:

Total Company Commercial Residential Sales $ 840,000 $ 280,000 $ 560,000 Cost of goods sold 557,200 154,000 403,200 Gross margin 282,800 126,000 156,800 Selling and administrative expenses 264,000 116,000 148,000 Net operating income $ 18,800 $ 10,000 $ 8,800 In preparing these statements, the intern determined that Toxaway’s only variable selling and administrative expense is a 10% sales commission on all sales. The company’s total fixed expenses include $78,000 of common fixed expenses that would continue to be incurred even if the Commercial or Residential segments are discontinued, $62,000 of fixed expenses that would be avoided if the Commercial segment is dropped, and $40,000 of fixed expenses that would be avoided if the Residential segment is dropped. Required: 1. Do you agree with the intern’s decision to use an absorption format for her segmented income statement? 2. Based on a review of the intern’s segmented income statement. a. How much of the company’s common fixed expenses did she allocate to the Commercial and Residential segments? b. Which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercial and Residential segments: (a) sales, (b) cost of goods sold, or (c) gross margin? 3. Do you agree with the intern’s decision to allocate the common fixed expenses to the Commercial and Residential segments? 4. Redo the intern’s segmented income statement using the contribution format. 5. Compute the companywide break-even point in dollar sales. 6. Compute the break-even point in dollar sales for the Commercial Division and for the Residential Division. 7. Assume the company decided to pay its sales representatives in the Commercial and Residential Divisions a total monthly salary of $17,000 and $34,000, respectively, and to lower its companywide sales commission percentage from 10% to 5%. Calculate the new break-even point in dollar sales for the Commercial Division and the Residential Division.

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expected to wash 8,300 cars in August and to collect an average of $6.50 per car washed.

The actual operating results for August appear below.

Compute the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

The equity sections from Marshall Group’s 2016 and 2017 year-end balance sheets follow.

The following transactions and events affected its equity during year 2017.

General Ledger tab - Prepare journal entries for each transaction.

Cash Dividends tab - Calculate the amount of each cash dividend

Stock Dividend tab - Calculate the amount of retained earnings to be capitalized.

Of which are these are operating, investing, financing, and non-cash activities? Purchase of furniture for cash, deprecation expense, new long-term loan for operations, proceeds from sale of land, change in accounts payable, gain on sale of building, issuance of long-term notes payable, and conversion of bonds payable to common stock.

The budget process is often iterative and may involve a first, second, and even third round of discussions and updates with department managers/senior management. Given this situation, what could we do from an organizational standpoint to effectively keep track of all these changes and why is it important to build a flexible budget template?

5. Discuss the topic of the following federal tax forms:

a. 990 –

b. Schedule SE –

c. Form W-2 –

6. Identify the topic of the following Treasury Regulations, Revenue Rulings or Revenue Procedures:

a. Reg. § 301.6333-1 –

b. Treas. Reg. 1.482-7(b)(1)(iii). -

c. Rev. Proc. 89–14, 1989–1 C.B. 814 -

7. Apply your knowledge of tax law, to other areas of the United States Code, given that sometimes an accountant might need to access other parts of the United States law:

   a. 15 U.S.C., chapter 2B, section 78j-1(b)(1) -

b. 31 U.S.C., subtitle B, chapter X -

c. Title 18, chapter 31, section 664 -

Beacon Company is considering automating its production facility. The initial investment in automation would be $8.04 million, and the equipment has a useful life of 6 years with a residual value of $1,140,000. The company will use straight-line depreciation. Beacon could expect a production increase of 41,000 units per year and a reduction of 20 percent in the labor cost per unit.         

Required:
1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.)

1-b. Does Beacon Company favor automation?

        

3. Determine the project's payback period. (Round your answer to 2 decimal places.)

Payback period = ???

4. Using a discount rate of 13 percent, calculate the net present value (NPV) of the proposed investment. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Enter the answer in whole dollar. Round the final answer to nearest whole dollars.)

Net Present Value = ????
    
5. Recalculate the NPV using a 8% discount rate. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Enter the answer in whole dollar. Round the final answer to nearest whole dollars.)

Net Present Value = ???

what are the three levels of influence that an investor can have over an investee company? what is the appropriate accounting treatment for each level of influence?

A company is hoping to expand its facilities but needs capital to do so. In an effort to position itself for expansion in 3 years, the company will direct half of its profits into investments in a continuous manner. The company's profits for the past 5 years are shown in the table. The company's current yearly profit is $1,160,000. (The current year corresponds to t = 0.)

Profit over the Past Five Years

Consider the following profit scenarios and answer the questions.

(a) The profit for the next 3 years follows the trend shown in the table.
(i) Write the quadratic function that describes the flow of the company's investments. (Align the input such that 5 years ago corresponds to t = −5. Round all numerical values to three decimal places.)
R(t) = ______thousand dollars

(ii) Calculate the capital the company will have saved after 3 years of investing at 6.4% annual interest compounded continuously. (Round your answer to three decimal places.)
$ _____thousand
(b) The profit increases each year for the next 3 years by the same percentage that it increased in the current year.(i) Write the function that describes the flow of the company's investments. (Round all numerical values to three decimal places.)
R(t) = ______ thousand dollars

(ii) Calculate the capital the company will have saved after 3 years of investing at 6.4% annual interest compounded continuously. (Round your answer to three decimal places.)
$ ______ thousand
(c) The profit remains constant at the current year's level.(i) Write the function that describes the flow of the company's investments.
R(t) = ______thousand dollars

(ii) Calculate the capital the company will have saved after 3 years of investing at 6.4% annual interest compounded continuously. (Round your answer to three decimal places.)
$ _____ thousand
(d) The profit increases each year for the next 3 years by the same fixed amount that it increased this year.(i) Write the function that describes the flow of the company's investments.
R(t) = ______thousand dollars

(ii) Calculate the capital the company will have saved after 3 years of investing at 6.4% annual interest compounded continuously. (Round your answer to three decimal places.)
$_______   thousand

Goodwill - General Electric: What is the controversial about GE $23 billion write off

Is the case of General Motors a perfect example of goodwill impairment

1- Assume that the following data relative to Rice Company for 2020 is available

Net Income $3,984,000:

Transactions in Common Shares Change Cumulative

Jan. 1,2020 Beginning number 650,000

Apr. 1,2020 Purchase of treasury shares (50,000) 600,000

June 1,2020 100% stock dividend 600,000 1,200,000

Dec 1,2020 Issuance of shares 200,000 1,400,000

5% Cumulative Preferred Stock:

$1,000,000 sold at par on January  1,2020 convertible into 200,000 shares of common stock

Stock options:

Exercisable at the option of $30 per share. Average market price in 2020, $35 and there were 60,000 options outstanding since 2017.

(A) compute the basic earnings per share for 2020. (round to the nearest penny)

(B) compute the diluted earnings per share for 2020. (round to the nearest penny)

ashton, inc.has the following cost data for product x: direct materials $43 per unit direct labor 58 per unit variable manufacturing overhead 11 fixed manufacturing overhead 15,000 per year. calculate the unit product cost using absorption costing and variable costing when production is 500 units , 1000 units, and 1500 units. select the labels and enter the amounts to compute the unit product cost using absorption costing (if a box is not used in the table, leave the box empty. do not select alabel or enter a zero.)

Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno’s monthly manufacturing cost and other expense data are as follows.

Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns.

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Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 15.25.)