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

The following income statement and information about changes in noncash current assets and current liabilities are reported.

SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales $ 2,177,000 Cost of goods sold 1,066,730 Gross profit 1,110,270 Operating expenses Salaries expense $ 298,249 Depreciation expense 52,248 Rent expense 58,779 Amortization expenses–Patents 6,531 Utilities expense 23,947 439,754 670,516 Gain on sale of equipment 8,708 Net income $ 679,224 Changes in current asset and current liability accounts for the year that relate to operations follow. Accounts receivable $ 31,350 increase Accounts payable $ 12,175 decrease Inventory 11,400 increase Salaries payable 1,200 decrease Required: Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Creative Computing sells a tablet computer called the Protab. The $920 sales price of a Protab Package includes the following: One Protab computer. A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. A coupon to purchase a Creative Probook e-book reader for $400, a price that represents a 50% discount from the regular Probook price of $800. It is expected that 25% of the discount coupons will be utilized. A coupon to purchase a one-year extended warranty for $60. Customers can buy the extended warranty for $60 at other times as well. Creative estimates that 35% of customers will purchase an extended warranty. Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but estimates that if it did so, a Protab alone would sell for $900. All Protab sales are made in cash. Required: 1. & 2. Indicated below whether each item is a separate performance obligation and allocate the transaction price of 90,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 90,000 Protab Packages (ignore any sales of extended warranties).

The Timberland Lumber Company had the following historical accounting data, per 100 board feet, concerning one of its products in the Sawmill Division:

The historical data is based on an average volume per period of 20,000 board feet. The shelving is normally transferred internally from the Sawmill Division to the Finishing Division. Timberland may also sell the shelving externally for $90 per 100 board feet. The divisions are taxed at identical rates.

Which of the following transfer pricing methods would lead to the highest Finishing Division income if 10,000 board feet are produced and transferred in entirety this period from Sawmill to Finishing?

Nash Company sells one product. Presented below is information for January for Nash Company.

Jan. 1 Inventory 122 units at $4 each

4 Sale 101 units at $8 each

11 Purchase 164 units at $6 each

13 Sale 132 units at $9 each

20 Purchase 169 units at $6 each

27 Sale 106 units at $10 each

Nash uses the FIFO cost flow assumption. All purchases and sales are on account.

1. Assume Nash uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 116 units.

- Compute gross profit using the periodic system.     Gross profit=?

2. Assume Nash uses a perpetual system. Prepare all necessary journal entries.

- Compute gross profit using the periodic system.       Gross profit=?

Could explain more about how to calculate on part 2 about how to record sale and how to record the cost of inventory?

The following information is related to Buffalo Company for 2017.

Buffalo Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Buffalo sold the wholesale operations to Rogers Company. During 2017, there were 490,600 shares of common stock outstanding all year.

Prepare a multistep income statement.

Campbell Boot Co. sells men’s, women’s, and children’s boots. For each type of boot sold, it operates a separate department that has its own manager. The manager of the men’s department has a sales staff of nine employees, the manager of the women’s department has six employees, and the manager of the children’s department has three employees. All departments are housed in a single store. In recent years, the children’s department has operated at a net loss and is expected to continue to do so. Last year’s income statements follow:

Required

1. a. Calculate the contribution margin. Determine whether to eliminate the children’s department.

2. b-1. Calculate the net income for the company as a whole with the children's department.

3. b-2. Confirm the conclusion you reached in Requirement a by preparing income statements for the company as a whole with and without the children’s department.

4. c. Eliminating the children’s department would increase space available to display men’s and women’s boots. Suppose management estimates that a wider selection of adult boots would increase the store’s net earnings by $36,000. Would this information affect the decision that you made in Requirement a?

Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 1,100,000 Paid-in capital in excess of par value, common stock 70,000 Retained earnings 400,000 Total stockholders' equity $ 1,570,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 4,000 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,500 of its treasury shares at $24 cash per share. Aug. 22 Sold 2,500 of its treasury shares at $17 cash per share. Sept. 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. Oct. 28 Paid the dividend declared on September 5. Dec. 31 Closed the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required: 1. Prepare journal entries to record each of these transactions for 2017.

2. Prepare a statement of retained earnings for the year ended December 31, 2017.

3. Prepare the stockholders' equity section of the company’s balance sheet as of December 31, 2017.

The required report or statements in the general purpose federal financial report that addresses forward-looking information regarding the possible effects of currently known demands, risks, and uncertainties, and trends in the federal entity is (are):

Question 7 options:

The statement of activities required by SFAS No. 117 for health care entities subject to its jurisdiction must display changes for the period in which of the following categories of net assets?

Question 10 options:

Are public and private colleges and universities required to report depreciation expense in their financial statements?

Question 25 options:

An audit of a government, conducted in accordance with generally accepted auditing standards (GAAS), includes

Question 24 options:

All of the following are examples of acts or policies that are uniform across the United Stated for not-for-profit organizations except:

Question 14 options:

1) A company has variable costs of $24.50, total fixed costs of $20,500,000 and plans to sell its product for $38.00. In 2018 it sold 2,200,000 units of product.

Required: a) breakeven in units and dollars; b) assume management wants to earn $14,000,000 in operating income, how many units must be sold; c) assume income tax rates are 22% of pre-tax income and management wants to earn $16,000,000 after tax- how many units are required; d) for 2018 what is the margin of safety in dollars and percentage; e) what is the operating leverage in 2018; f) the production manager wants to automate production and lower variable costs by $2 per unit and spend an additional $3,500,000 fixed costs per year- is this more profitable?

g) The sales manager wants to drop prices by $2 per unit and spend an added $250,000 on advertising, while volume increase by 160,000 units- is this more profitable?

Mertz Company employs a job cost system. As of January 1, 2019, its records showed the following inventory balances:

The work in process inventory consisted of two jobs:

Summarized below are the production and sales data for the company for 2019:

1.      Materials purchased $95,000
2.      Materials requisitioned: direct materials for Job No. 378, $16,000; for Job No. 379, $32,000; and Job No. 380, $36,000; supplies (indirect materials) requisitioned, $4,500.
3.      Factory payroll distributed: direct labor to Job No. 378, $30,000; to Job No. 379, $45,000; and to Job No.380, $60,000; indirect labor, $15,000
4.      Manufacturing overhead is assigned to work in process at $0.50 per dollar of direct labor (the same rate as in 2018)

5.      Job Nos. 378 and 379 were completed
6.      Factory indirect costs (other than indirect labor and indirect materials); depreciation, $7,000; heat, light, and power, $3,000; and miscellaneous, $5,000.
7.      Sales for the year amounted to $320,000; cost of goods sold, $197,000.

Required:

Use T-accounts to illustrate the journal entries for the above summarized transactions.

The outstanding share capital of Marginal Utility Corporation consists of 6,000 preferred shares with a book value of $420,000 and 22,000 common shares with a book value of $220,000. The preferred shares carry a dividend of $6 per share and have a $70 stated value.

Required:

Assuming that the company has retained earnings of $340,000 that is to be entirely paid out in dividends and that preferred dividends were not paid during the two years preceding the current year, state how much each class of shares should receive under each of the following conditions:

1. The preferred shares are non-cumulative and non-participating.
2. The preferred shares are cumulative and non-participating.
3. The preferred shares are cumulative and participating.

The Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the coming year. He is also trying to determine how the company’s profits might be increased in the coming year. This problem asks you to use cost-volume-profit concepts to help Waterways understand contribution margins of some of its products and decide whether to mass-produce any of them.

Waterways markets a simple water control and timer that it mass-produces. Last year, the company sold 721,000 units at an average selling price of $3.50 per unit. The variable costs were $1,766,450, and the fixed costs were $529,935.

-Contribution of margin Ratio= 30%

-Break Even point in Units=504,700

-Break Even Point in dollars=1,766,450

(A)What is the margin of safety, both in dollars and as a ratio? (Round ratio to 0 decimal places, e.g. 25%.)

(B)If management wanted to increase its income from this product by 10%, how many additional units would have to be sold to reach this income level?

(C)If sales increase by 51,000 units and the cost behaviors do not change, how much will income increase on this product?

On January 2, 2011, Blueman Corporation was incorporated in the province of Ontario. It was authorized to issue an unlimited number of no-par value common shares, and 25,000 shares of no-par, $8, cumulative and non-participating preferred.   During 2011, the firm completed the following transactions:

Jan 8        Accepted subscriptions for 34,000 common shares at $12 per share. Down payment received on the subscribed shares was 50%.

Jan 30      Issued 10,000 preferred shares in exchange for the following assets: machinery with a fair market value of $50,000, a factory with a fair market value of $200,000, and land with an appraised value of $120,000.

Mar 15      Machinery with a fair market value of $85,000 was donated to the company.

Apr 25      Collected the balance of the subscriptions receivable on only 30,000 shares and issued common shares. A customer defaulted on the last payment on a subscription for 4,000 shares. The company policy is to issue the proportion paid up to date for customers that default.

June 30    Purchased 2,200 common shares at $18 per share. The shares were retired.

Dec 31     Declared sufficient cash dividends to allow a $1 per share dividend for outstanding common shares. The dividend is payable on January 10, 2012, to shareholders of record on January 5, 2012.

Dec 31     Closed the income summary to retained earnings. The income for the period was $225,000.

Required:

1. ( Prepare the journal entries to record the above transactions.
2. (Prepare the shareholders’ equity section of the balance sheet for Blueman Corporation at December 31, 2011.