You are given the following information for Hendrix Guitars, Inc. Profit margin 6.3 % Total asset turnover 1.75 Total debt ratio .35 Payout ratio 30 % Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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Budgeted fixed costs for the year were $1,000,000. Actual fixed costs for th year were $1,100,000.

Variable costs were budgeted as $10 per kilowatt-hour. The actual total variable costs were
$2,200,000.

1. Calculate the amount of power costs that would be allocated to each o the three locations using
a single rate based on budgeted costs.
2. Calculate the amount of power costs that would be allocated to each o the three locations using
a dual rate method based on budgeted costs for fixed and actual costs for variable.

Variable costing versus absorption costing. The Garvis Company uses an absorption-costing system based on standard costs. Variable manufacturing cost consists of direct material cost of $4.50 per unit and other variable manufacturing costs of $1.50 per unit. The standard production rate is 20 units per machine-hour. Total budgeted and actual fixed manufacturing overhead costs are $840,000. Fixed manufacturing overhead is allocated at $14 per machine-hour based on fixed manufacturing costs of $840,000÷60,000$840,000÷60,000 machine-hours, which is the level Garvis uses as its denominator level.
The selling price is $10 per unit. Variable operating (nonmanufacturing) cost, which is driven by units sold, is $2 per unit. Fixed operating (nonmanufacturing) costs are $240,000. Beginning inventory in 2017 is 60,000 units; ending inventory is 80,000 units. Sales in 2017 are 1,080,000 units.
The same standard unit costs persisted throughout 2016 and 2017. For simplicity, assume that there are no price, spending, or efficiency variances.

Prepare an income statement for 2017 assuming that the production-volume variance is written off at year-end as an adjustment to cost of goods sold.
Required
The president has heard about variable costing. She asks you to recast the 2017 statement as it would appear under variable costing.
Explain the difference in operating income as calculated in requirements 1 and 2.
Graph how fixed manufacturing overhead is accounted for under absorption costing. That is, there will be two lines: one for the budgeted fixed manufacturing overhead (which is equal to the actual fixed manufacturing overhead in this case) and one for the fixed manufacturing overhead allocated. Show the production-volume variance in the graph.
Critics have claimed that a widely used accounting system has led to undesirable buildups of inventory levels. (a) Is variable costing or absorption costing more likely to lead to such buildups? Why? (b) What can managers do to counteract undesirable inventory buildups?

Perry Company purchased 100% of Starling Company on 1/1/20X1. At the date of acquisition, the following differences existed:

Starling had a 20-year loan for $500,000. The fair value of the loan was $540,000.

Starling had an unrecorded Patent with an estimated remaining life of 5 years. The fair value of the patent was $800,000.

Any other differences between book value and fair value were attributable o goodwill.

At 12/31/20X4, Starling still had the loan and patent that existed at the date of acquisition. The following balances are on the separate company's records (4 years have passed). Both accounts are normal balances.

Perry. Starling. Mathematical Total

Patents. 150,000. -0- 150,000

Loans payable 350,000. 580,000. 930,000

In the year ended 12/31/20X4, Starling reports net income of $820,000 on its separate income statement.

1. On its separate income statement, what will Perry report as equity in income of Starling for the year ended 12/31/20X4?

2. What will be the balance in the Patents account on the consolidated balance sheet at 12/31/20X4?

3. What will be the balance in the Loans payable account on the consolidated balance sheet at 12/31/20X4?

Question 2 Below is the Trial Balance of Marks Supermarket as at 31 March 2010. Dr Cr Pula Pula Purchases and sales 328 000 960 000 Inventory at 1 April 2009 60 000 10% Debenture 400 000 Accounts receivables/ payables 100 000 80 000 Cash/Bank 68 000 Retained profit at 1 April 2009 620 000 General reserve 80 000 Advertisement 50 000 Audit fees 24 000 Interim dividend 30 000 Debenture interest 20 000 General expenses 84 000 Building at cost 800 000 Provision for depreciation(building) 60 000 Plant at cost 1 600 000 Provision for depreciation ( Plant) 380 000 Ordinary shares of P10 each 600 000 8% preference share capital 200 000 Wages and salaries (administration) 100 000 Salesmen salaries 60 000 Carriage inwards 16 000 Rent and rates 40 000 Total 3 380 000 3 380 000 Additional information: 1. Property, plant and equipment to be depreciated as follows: Buildings at 5% using straight line method, Plant at 10% using reducing balance method. All depreciation for the year was to be charged to administration. 2. The amount of inventory as at 31 March 2010 was P80 000. 3. An amount of P58 000 was to be provided for taxation for the year ended 31 March 2010. 4. Rent paid in advance amounted to P16 400. 5. General expenses were to be allocated as follows: 2/3 to administration and 1/3 to distribution. 6. An amount of P80 000 was to be transferred to general reserve. 7. A 10% final dividend on ordinary shares was declared. 8. Preference dividend has not yet been paid. Required to prepare the following financial statements for Marks Supermarket: a) Statement of comprehensive income( income statement) for the year ended 31 March 2010 b) Statement of Changes in Equity for the year ended 31 March 2010 c) Statement of financial position (Balance Sheet) as at 31 March 2010

Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposes during the year. Alexa’s AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income.

Assume that in addition to renting the condo for 100 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $30,000 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo. Answer the following questions:

Note that the home is considered to be a nonresidence with rental use.

a. What is the total amount of for AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

b. What is the total amount of from AGI deductions relating to the condo that Alexa may deduct in the current year? Assume she uses the IRS method of allocating expenses between rental and personal days. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

c. Would Alexa be better or worse off after taxes in the current year if she uses the Tax Court method of allocating expenses?

Better off

Worse off

3. Zee Company issued 1000 P1 ordinary shares at P1.50 per share. The shares were to be paid for as follows: 50 thebe on application, 70 thebe (including premium) on allotment and 30 on call. 1500 applications were received and allotment was made pro rata to the applicants. The balance of application money was applied to the allotment, no cash being refunded. All instalments were received on the due dates. Prepare relevant accounts to record the above issue of shares.

How does the IRS tax code affect the economic activity?

What are the journal entries for the following transaction?

A company entered into a two-year loan of $20,000,000, with a 20% interest rate payable semi-annually April 1 and October 1 with no principal due until maturity. The debt is convertible into shares of common stock at $1.50 per share. The company incurred $1,5000,000 in financing costs, paid to the issuer.

2. Handbag Ltd issued 2000 ordinary shares of P5 at an issue price of P8. Payment for the shares was made as follows: On application P2, on allotment P4 (including share premium), on first call P1 and on second call P1. Applications were received for 2000.All the instalments were received on due dates. Prepare relevant accounts to record the above issue of shares.

1. An arrangement has been made with the local bank that if ToyWorks maintains a minimum balance of $20,000 in their bank account, they will be given a line of credit at a preferred rate of 6% per annum. All borrowing is considered to happen on the first day of the month, repayments are on the last day of the month. All borrowings and repayments from the bank should be in multiples of $1,000 and interest must be paid at the end of each month. Interest is calculated on the balance at the beginning of the month, which includes any amounts borrowed that month.

Complete the financing option for the company

my assignment is to determine the type of investment (debt or equity) for a publicly traded company. I also need to speculate on what the investments are and how they are classified. I don't know how to find these answers looking at the company (The Clorox Company) balance sheet. How do I answer these question just looking at the balance sheet?

Thank you

Discuss the impact of quality control on product quality, on production cost, and product pricing

You are the Manager of Financial Reporting for your company. Your company is facing a number of reporting challenges as a result of an acquisition, COVID-19 and other activities. Although the CFO makes the final decision on accounting standard applications, the CFO relies heavily on your expertise (acquired in the Aurora University MSA program) and your years of research and experience.

In a meeting (brainstorming session), a list of potential reporting issues is developed and are listed below. You have been asked to select the three you feel may be most important and prepare a memo to be reviewed and to guide proper accounting treatment for each.

Your memo should include:

Organization-Appears neat and organized; logical; no spelling or grammar errors; guides the reader to the point(s).

Facts/Issues-States area being reviewed and identifies importance (“issue”) to a company.

Applicable Literature-Identifies all applicable literature. It is properly linked to the issue noted above. Citations are to adequate depth that it represents support, not the start of a new search.  Please remember, some areas have guidance in more than one area of ASC. Some topics have conflicting direction. These should all be identified.

Remember as you prepare your memo to be complete but concise.  Like most executives, the CFO has the attention span of an ant. Your goal is to get the key points summarize and supported, having a significant impact on the decision-making process.

Here is the list of topics developed in the brainstorming session:

1. Balance Sheet classifications
2. Valuation of Assets and Liabilities in an acquisition
3. Valuation accounts
4. Impairment of long-term assets
5. Contingent liabilities
6. Non-recurring items
7. Cash flow impact of refinancing
8. Related party transactions
9. Revenue recognition-over time (maintenance agreement)
10. Principal/Agent definition

You can answer any three BUT your answers must be in numerical order (eg. 4, 7, 10). DO NOT submit your answers out of order (eg. 7, 4 , 9).

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.85 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $347,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 400 square foot carpet-cleaning job at the Flying N ranch—a 53-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N ranch was $95.40 (400 square feet @ $23.85 per hundred square feet). Calculate the customer margin earned on this job.

Complete this question by entering your answers in the tabs below.

• Required 1
• Prepare the first-stage allocation of costs to the activity cost pools

• 	Cleaning Job Carpets Travel to Jobs Support Other Total Wages $0 Cleaning supplies 0 Cleaning equipment depreciation 0 Vehicle expenses 0 Office expenses 0 President’s compensation 0 Total cost $0 $0 $0 $0 $0

• Required 2

• Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)

  	Activity Cost Pool Activity Rate Cleaning carpets per hundred square feet Travel to jobs per mile Job support per job

• Required 3

• The company recently completed a 400 square foot carpet-cleaning job at the Flying N ranch—a 53-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.)

  	Cost of the job

• Required 4

• The revenue from the Flying N ranch was $95.40 (4 hundred square feet @ $23.85 per hundred square feet). Calculate the customer margin earned on this job. (Round your intermediate calculations and final answers to 2 decimal places.)

  	Customer margin