Explain under what circumstances a net operating loss of a partnership can be carried over and applied against income of a partner even after the 20-year carryover period provided for net operating loss carryovers has expired.
In: Accounting
Do some research to find the 2018 balance sheets for Macy’s and Nordstrom online. For each company, navigate to the company’s website, then scroll down to investors or investor relations, 2018 annual report, and locate their 2018 balance sheet.
Identify and describe the company’s three most significant accounts in the following areas:
How do these two retailer’s balance sheets compare? Which company do you feel is healthier?
In: Accounting
Developing a Master Budget for a Manufacturing
Organization
Jacobs Incorporated manufactures a product with a selling price of
$50 per unit. Units and monthly cost data follow:
| Variable: | |
| Selling and administrative |
$ 4 per unit sold |
| Direct materials | $ 10 per unit manufactured |
| Direct labor | $ 10 per unit manufactured |
| Variable manufacturing overhead | $ 5 per unit manufactured |
| Fixed: | |
| Selling and administrative |
$15,000 per month |
| Manufacturing (including depreciation of $ 10,000) |
30,000 per month |
Jacobs pays all bills in the month incurred. All sales are on account with 50 percent collected the month of sale and the balance collected the following month. There are no sales discounts or bad debts. Jacobs desires to maintain an ending finished goods inventory equal to 20 percent of the following month's sales and a raw materials inventory equal to 10 percent of the following month's production. January 1, 2014, inventories are in line with these policies. Actual unit sales for December and budgeted unit sales for January, February, and March of 2014 are as follows:
| JACOBS INCORPORATED Sales Budget For the Months of January, February, and March 2014 |
||||
|---|---|---|---|---|
| Month | December | January | February | March |
| Sales - Units | 6,250 | 5,000 | 10,000 | 8,000 |
| Sales - Dollars | $312,500 | $250,000 | $500,000 | $400,000 |
Additional information:
NOTE: For the entire problem - do not use any negative signs with your answers unless appropriate for net income(loss) or ending balance.
(a) A production budget for January and February.
| Jacobs Incorporated Production Budget For the Months of January and February 2014 |
|||
|---|---|---|---|
| January | February | March | |
| Requirements for current sales | Answer | Answer | Answer |
| Desired ending inventory | Answer | Answer | |
| Total requirements | Answer | Answer | |
| Less beginning inventory | Answer | Answer | |
| Production requirements | Answer | Answer | |
(b) A purchases budget in units for January.
| Jacobs Incorporated Purchases Budget For the Month of January 2014 |
||
|---|---|---|
| January | February | |
| Current requirements (units) | Answer | Answer |
| Desired ending inventory | Answer | |
| Total requirements | Answer | |
| Less beginning inventory | Answer | |
| Purchases (units) | Answer | |
| Purchases (dollars at $10 each) | $Answer | |
(c) A manufacturing cost budget for January.
| Jacobs Incorporated Manufacturing Cost Budget For the Month of January 2014 |
|
|---|---|
| Variable costs | |
| Direct materials | $Answer |
| Direct labor | Answer |
| Variable manufacturing overhead | Answer |
| Total variable costs | Answer |
| Fixed manufacturing overhead | Answer |
| Total manufacturing overhead | $Answer |
(d) A cash budget for January.
| Jacobs Incorporated Cash Budget For the Month of January 2014 |
||
|---|---|---|
| Beginning balance | $Answer | |
| Receipts: | ||
| December sales | $Answer | |
| January sales | Answer | Answer |
| Total cash available | Answer | |
| Disbursements: | ||
| Purchases | Answer | |
| Direct labor | Answer | |
| Variable manufacturing overhead | Answer | |
| Fixed manufacturing overhead (exclude depreciation) | Answer | |
| Variable selling and administrative | Answer | |
| Fixed selling and administrative | Answer | |
| Dividend | Answer | Answer |
| Ending Balance | $Answer | |
(e) A budgeted contribution income statement for January.
| Jacobs Incorporated Budgeted Contribution Income Statement For the Month of January 2014 |
||
|---|---|---|
| Sales | $Answer | |
| Less variable costs: | ||
| Cost of goods sold | $Answer | |
| Selling and administrative | Answer | Answer |
| Contribution | Answer | |
| Less fixed costs: | ||
| Manufacturing overhead | Answer | |
| Selling and administrative | Answer | Answer |
| Net income | $Answer | |
In: Accounting
Access the EDGAR database (SEC.gov) and obtain the July 2018 form 10K filing (for the year ended May 31, 2018) for NIKE, Inc. Prepare a table that reports the gross margin ratios for NIKE, using the revenues and cost of goods sold data from NIKE's income statement for each of it's most recent three years. Analyze and comment on trend in its gross margin ratio. Use complete sentences and good grammar. Feel free to access the Management Discussion and Analysis in the 10K to see if management had anything to say about the trend. Earn 10 points if you complete all elements of the assignment. You may comment on another students submission but you are not required to do so.
In: Accounting
Minden Company is a wholesale distributor of premium European chocolates. The company’s balance sheet as of April 30 is given below:
| Minden Company Balance Sheet April 30 |
||
| Assets | ||
| Cash | $ | 9,400 |
| Accounts receivable | 78,500 | |
| Inventory | 44,000 | |
| Buildings and equipment, net of depreciation | 221,000 | |
| Total assets | $ | 352,900 |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable | $ | 72,000 |
| Note payable | 19,700 | |
| Common stock | 180,000 | |
| Retained earnings | 81,200 | |
| Total liabilities and stockholders’ equity | $ | 352,900 |
The company is in the process of preparing a budget for May and has assembled the following data:
Sales are budgeted at $256,000 for May. Of these sales, $76,800 will be for cash; the remainder will be credit sales. One-half of a month’s credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May.
Purchases of inventory are expected to total $188,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the April 30 accounts payable to suppliers will be paid during May.
The May 31 inventory balance is budgeted at $83,000.
Selling and administrative expenses for May are budgeted at $91,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,000 for the month.
The note payable on the April 30 balance sheet will be paid during May, with $435 in interest. (All of the interest relates to May.)
New refrigerating equipment costing $7,000 will be purchased for cash during May.
During May, the company will borrow $23,100 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.
Required:
1. Calculate the expected cash collections from customers for May.
2. Calculate the expected cash disbursements for merchandise purchases for May.
3. Prepare a cash budget for May.
4. Prepare a budgeted income statement for May.
5. Prepare a budgeted balance sheet as of May 31.
In: Accounting
In: Accounting
Orange Corp. has two divisions: Fruit and Flower. The following
information for the past year is available for each division:
| Fruit Division | Flower Division | ||||
| Sales revenue | $ | 1,020,000 | $ | 1,530,000 | |
| Cost of goods sold and operating expenses | 765,000 | 1,147,500 | |||
| Net operating income | $ | 255,000 | $ | 382,500 | |
| Average invested assets | $ | 2,550,000 | $ | 2,250,000 | |
Orange has established a hurdle rate of 8 percent.
Required:
1-a. Compute each division’s return on investment
(ROI) and residual income for last year.
1-b. Determine which manager seems to be
performing better.
2. Suppose Orange is investing in new technology
that will increase each division’s operating income by $132,000.
The total investment required is $2,100,000, which will be split
evenly between the two divisions. Calculate the ROI and residual
income for each division after the investment is made.
3. Determine whether both managers will support
the investment.
In: Accounting
1. Flexible Budget for Assembly Department
Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department:
| Direct labor per filing cabinet | 30 minutes |
| Supervisor salaries | $123,000 per month |
| Depreciation | $16,000 per month |
| Direct labor rate | $18 per hour |
Prepare a flexible budget for 10,000, 13,000, and 15,000 filing cabinets for the month of March in the Assembly Department similar to Exhibit 5. Enter all amounts as positive numbers.
| Cabinaire Inc. | |||
| Assembly Department Budget | |||
| Month Ending March 31 (assumed data) | |||
| Units of production | 10,000 | 13,000 | 15,000 |
| Variable cost: | |||
| $ | $ | $ | |
| Total variable cost | $ | $ | $ |
| Fixed cost: | |||
| $ | $ | $ | |
| Total fixed cost | $ | $ | $ |
| Total department costs | $ | $ | $ |
2.
Production Budget
Weightless Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows:
| Bath Scale | Gym Scale | |||
| East Region unit sales | 23,800 | 36,900 | ||
| West Region unit sales | 25,700 | 27,000 | ||
| Total | 49,500 | 63,900 | ||
The finished goods inventory estimated for October 1, for the Bath and Gym scale models is 1,800 and 2,600 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 1,300 and 2,800 units, respectively.
Prepare a production budget for the small and large scales for the month ended October 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
| Weightless Inc. | ||
| Production Budget | ||
| For the Month Ending October 31 | ||
| Units Bath Scale | Units Gym Scale | |
| Total | ||
| Total units to be produced | ||
3.
Sales and Production Budgets
Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget:
| Rumble | Thunder | ||
| Estimated inventory (units), June 1 | 288 | 84 | |
| Desired inventory (units), June 30 | 331 | 73 | |
| Expected sales volume (units): | |||
| Midwest Region | 3,750 | 3,300 | |
| South Region | 5,700 | 6,450 | |
| Unit sales price | $130 | $200 |
a. Prepare a sales budget.
| Sonic Inc. | |||
| Sales Budget | |||
| For the Month Ending June 30 | |||
| Product and Area | Unit Sales Volume | Unit Selling Price | Total Sales |
| Model: Rumble | |||
| Midwest Region | $ | $ | |
| South Region | |||
| Total | $ | ||
| Model: Thunder | |||
| Midwest Region | $ | $ | |
| South Region | |||
| Total | $ | ||
| Total revenue from sales | $ | ||
b. Prepare a production budget. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
| Sonic Inc. | ||
| Production Budget | ||
| For the Month Ending June 30 | ||
| Units Rumble | Units Thunder | |
| Total | ||
| Total units to be produced | ||
In: Accounting
Hickory Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:
| Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Expected Activity | ||
| Machining | Machine-hours | $ | 238,800 | 12,000 | MHs |
| Machine setups | Number of setups | $ | 93,100 | 190 | setups |
| Production design | Number of products | $ | 83,000 | 2 | products |
| General factory | Direct labor-hours | $ | 373,500 | 14,400 | DLHs |
| Activity Measure | Product Y | Product Z | |||
| Machine-hours | 6,900 | 5,100 | |||
| Number of setups | 40 | 150 | |||
| Number of products | 1 | 1 | |||
| Direct labor-hours | 7,900 | 6,500 | |||
1. What is the company’s plantwide overhead rate
2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?
3. What is the activity rate for the Machining activity cost pool?
4. What is the activity rate for the Machine Setups activity cost pool?
5. What is the activity rate for the Product Design activity cost pool?
6. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)
9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.)
10.
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.)
11.
Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).)
12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).)
13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).)
14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34)).
15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).)
In: Accounting
Special-Order Decision
Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $9.00. The new customer is geographically separated from Smooth Move's other customers, and existing sales will not be affected. Smooth Move normally produces 95,000 units but plans to produce and sell only 65,000 in the coming year. The normal sales price is $15 per unit. Unit cost information is as follows:
| Direct materials | $3.10 |
| Direct labor | 2.25 |
| Variable overhead | 1.15 |
| Fixed overhead | 1.80 |
| Total | $8.30 |
If Smooth Move accepts the order, no fixed manufacturing activities will be affected because there is sufficient excess capacity.
Required:
1. What are the alternatives for Smooth
Move?
Accept or reject the special order
2. CONCEPTUAL CONNECTION: Should Smooth Move
accept the special order?
Yes
By how much will profit increase or decrease if the order is
accepted?
Increase $
3. CONCEPTUAL CONNECTION: Briefly explain the significance of the statement in the exercise that “existing sales will not be affected” (by the special sale).
It indicates that there will be no product-line cannibalization; in other words, there is sufficient excess capacity such that the acceptance of the special sales will not decrease Smooth Move’s regular sales.
In: Accounting
Hipster Company applies overhead based on direct labor hours. At the beginning of the year January 1, Hipster estimates Overhead cost to be $450,000 and Direct Labor hours to be 90,000. During January, Jones has 6,700 actual direct labor hours.
31. Refer to Figure 5-1
What is the predetermined overhead rate?
|
a. |
$6 per direct labor hour |
|
b. |
$5 per direct labor hour |
|
c. |
$4 per machine hour |
|
d. |
$44,000 |
|
e. |
none of these |
32. Refer to Figure 5-1. What is the amount of overhead applied for January?
|
a. |
$40,200 |
|
b. |
$66,000 |
|
c. |
$44,000 |
|
d. |
$33,500 |
|
e. |
$480,000 |
33. Refer to Figure 5-1. If the actual overhead for January is $41,000, what is the overhead variance and is it overapplied or underapplied?
|
a. |
$800 underapplied |
|
b. |
$800 overapplied |
|
c. |
$7,500 underapplied |
|
d. |
$3,000 overapplied |
|
e. |
none of these |
In: Accounting
pictou pallets manufatures shipping pallets at two plants and distributes them to three strategically located warehouses.
Plant 1 is capable of producing 8000 pallets per year and plant 2 is capable of producing 5000 pallets per year.
Warehouse A requires 4500 pallets, warehouse b requires 3000 pallets, and warehouse c requires 4000 pallets per year.
the cost of shipping one pallet from each plant to each warehouse are listed below:
(eg. the cost of shipping from plant 1 to warehouse A is $1.10 per pallet)
| plant | warehouse a | warehouse b | warehouse c |
| 1 | $1.10 | $1.40 | $1.25 |
| 2 | $1.20 | $0.95 | $1.00 |
a) find the optimal shipping schedule to minimize shipping costs.
B) would the shipping schedule change if the cost of shipping from plant 1 to warehouse A increased by $0.30 to $1.40? explain
C) how much would the shipping charges change if plant 2's capacity were decreased by 100 pallets?
d) would the same hold for another decrease of 100 pallets?
E) the optimal shipping schedule has no pallets shipped from plant 1 to warehouse b. What change in shipping cost along this route would make such shipments worthwhile.
Please solve in Excel
In: Accounting
Warnerwoods Company uses a perpetual inventory system. It
entered into the following purchases and sales transactions for
March.
| Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||
| Mar. | 1 | Beginning inventory | 160 | units | @ $52.20 per unit | |||||||
| Mar. | 5 | Purchase | 255 | units | @ $57.20 per unit | |||||||
| Mar. | 9 | Sales | 320 | units | @ $87.20 per unit | |||||||
| Mar. | 18 | Purchase | 115 | units | @ $62.20 per unit | |||||||
| Mar. | 25 | Purchase | 210 | units | @ $64.20 per unit | |||||||
| Mar. | 29 | Sales | 190 | units | @ $97.20 per unit | |||||||
| Totals | 740 | units | 510 | units | ||||||||
Compute the cost assigned to ending inventory using LIFO.
|
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In: Accounting
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:
| April | May | June | Total | |
| Budgeted sales (all on account) | $480,000 | $680,000 | $260,000 | $1,420,000 |
From past experience, the company has learned that 30% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $410,000, and March sales totaled $440,000.
Required:
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
2. What is the accounts receivable balance on June 30th?
In: Accounting
he direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
| Budgeted direct labor-hours | 11,200 | 9,800 | 10,100 | 10,900 |
The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $6.00 per direct labor-hour and its total fixed manufacturing overhead is $80,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $20,000 per quarter.
Required:
1. Prepare the company’s manufacturing overhead budget for the upcoming fiscal year.
2. Compute the company’s predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.
In: Accounting