High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:

Management is anxious to assess the profitability of the new camp cot during the month of May.

Required:

1. Assume that the company uses absorption costing.

a. Determine the unit product cost.

b. Prepare an income statement for May.

2. Assume that the company uses variable costing.

a. Determine the unit product cost.

b. Prepare a contribution format income statement for May.

Dividends Per Share

Sandpiper Company has 30,000 shares of cumulative preferred 3% stock, $150 par and 50,000 shares of $20 par common stock. The following amounts were distributed as dividends:

Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.

[The following information applies to the questions displayed below.]    Concord Corp. completed the following transactions in 2014, the first year of operation: 1. Issued 32,000 shares of $20 par common stock for $30 per share. 2. Issued 4,900 shares of $54 par, 8 percent, preferred stock at $56 per share. 3. Paid the annual cash dividend to preferred shareholders. 4. Issued a 5 percent stock dividend on the common stock. The market value at the dividend declaration date was $43 per share. 5. Later that year, issued a 2-for-1 split on the 33,600 shares of outstanding common stock. 6. Earned $250,700 of cash revenues and paid $131,000 of cash operating expenses. References Section Break Problem 8-22 Recording and reporting stock dividends LO 8-4, 8-6, 8- 7 Problem 8-22 Part b b. Prepare the stockholders’ equity section of the balance sheet at the end of 2014.

Utilizing the CAFR obtained for City of Jackson in MS, review the governmental fund financial statements and related data and government-wide financial statements. Note particularly these items:

1. Statement of Activities at the Government-wide Level. What is the most costly governmental function or program operated by the government? Do any of the functions/programs have net revenue? How much of the cost of governmental activities was borne by taxpayers in the form of general revenues? Did the entity increase or decrease its governmental activities unrestricted net position this year? Did the entity increase or decrease its business-type activities unrestricted net position this year?
2. Statement of Revenues, Expenditures, and Changes in Fund Balances for Governmental Funds.
   1. Revenues. What system of classification of revenues is used in the governmental fund financial statements? List the three most important sources of General Fund revenues and the most important source of revenue for each major governmental fund. Does the reporting entity depend on any single source for as much as one-third of its General Fund revenues? What proportion of revenues is derived from property taxes? Do the notes clearly indicate recognition criteria for primary revenue sources?

Are charts, graphs, or tables included in the statistical section of the CAFR that show the changes over time in reliance on each revenue source? What have been the trends in revenue sources over time?

2. Expenditures. What level of classification of expenditures is used in the governmental fund financial statements (e.g., fund, function or program, organization unit, activity, character, object)? List the three largest categories of General Fund expenditures; list the largest category of expenditure of each major governmental fund.

Are charts, tables, or graphs presented in the statistical section of the CAFR to show the trend of General Fund expenditures, by category, for a period of 10 years? What has been the trend in expenditure categories? How does the trend in expenditures compare to the trend in revenues? Is expenditure data related to nonfinancial measures such as population of the government or workload statistics (e.g., tons of solid waste removed or number of miles of street constructed)?

2. 3. Other Financing Sources (Uses). Are other financing sources and uses reported in a separate section of the statement of revenues, expenditures, and changes in fund balances, below the revenues and expenditures sections? Do the line items indicate the nature of each financing source or use?
   4. Special or Extraordinary Items. Are any special or extraordinary items listed? What note disclosures are provided to help explain the items?
3. Budgetary Comparison Schedule or Statement. Does the government present budgetary comparisons as a basic governmental fund financial statement or as required supplementary information (RSI) immediately following the notes to the financial statements? Is the budgetary comparison title a schedule rather than a statement? Does the budgetary comparison present the original budget and the final amended budget? Does the budgetary schedule present actual data using the budgetary basis of accounting? Has the government presented one or more variance columns? Does the CAFR indicate that budgetary reporting practices differ from GAAP reporting practices? If so, does it explain how the practices differ?

[The following information applies to the questions displayed below.] Concord Corp. completed the following transactions in 2014, the first year of operation: 1. Issued 32,000 shares of $20 par common stock for $30 per share. 2. Issued 4,900 shares of $54 par, 8 percent, preferred stock at $56 per share. 3. Paid the annual cash dividend to preferred shareholders. 4. Issued a 5 percent stock dividend on the common stock. The market value at the dividend declaration date was $43 per share. 5. Later that year, issued a 2-for-1 split on the 33,600 shares of outstanding common stock. 6. Earned $250,700 of cash revenues and paid $131,000 of cash operating expenses.

Required a. Record each of these events in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA) and net change in cash (NC). Use NA to indicate that an element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.)

Please answer question in its entirety.

Five Measures of Solvency or Profitability

The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:

Income before income tax was $230,000, and income taxes were $33,900 for the current year. Cash dividends paid on common stock during the current year totaled $66,780. The common stock was selling for $90 per share at the end of the year.

Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required.

Problem 1

Chapter 7: Your hospital has applied for certification as a level 1 stroke center. It is critical that the following project is completed before the next Joint Commission survey in 18 weeks. Project activity times are listed in the table below.

1. Draw the network diagram and identify the project paths.
2. What is the project completion time and total project costs if only normal times are used?
3. Determine the minimum cost-schedule for this project.
4. What is the difference in total project costs between the earliest completion time of the project using normal times and the minimum cost-schedule you derived in part b?

1. It has come to your attention that someone in the company has not been consistent in entering financial data – some years are missing the relative percentage change or the net profit as presented below in Table 1.  You are required to calculate the Relative Percentage Change in the company for the blanks below and the Net Profit for the other blanks.

Show all working out below including the formula used for each year and include the completed table here.

               Table 1: Net Profit ($) per financial year

2. Using Excel, create a column chartof the Net Profit calculated in part (a) for the years 2010-2019. For full marks, label the axis and provide an appropriate title.

(c) Using Excel, create a Sparkling of the Relative Percentage Change calculated in part (a) for the years 2011-2019. For full marks, use the Sparkling options to mark if there are any negative values and include a horizontal axis to easily visualise changes. The sparkline should be included here however you will also use it in the report body text.

The following information relates to the Zipo Company. Compute both basic and diluted EPS for Zipo Company. Hint: solving this problem is very similar to the steps used to solve the “comprehensive example” problem in the Appendix to the chapter. All supporting calculations are to be turned in with the solution. Student groups are encouraged to meet in the classroom during the scheduled class time to work together. Each student is to turn in his/her solution.

1. The Company’s net income for the year was $50,000.

2. The weighted-average number of common shares outstanding is 10,000 shares.

3. The income tax rate is a flat 40%.

4. Series A Options to purchase 1,000 shares of common stock at $8 per share were outstanding all year.

5. Series B Options to purchase 2,000 shares of common stock at $13 per share were outstanding all year.

6. The average market price of common stock during the year was $10.

7. The Company had two hundred 7% convertible bonds outstanding the entire year. Each $1,000 bond converts into 40 common shares. The bonds had been issued at par and no bonds were converted during the year.

8. The Company had 1,000 shares of $100 par value, 4% convertible cumulative preferred stock issued and outstanding the entire year. Each preferred share is convertible into 1.25 shares of common stock. The preferred stock was issued at par value and no shares were converted during the year.

9. The Company had 1,000 shares of $100 par value, 6% non-cumulative, nonconvertible preferred stock issued and outstanding the entire year. The preferred stock was issued at par value.

10. All required preferred dividends were declared and paid during the year as well as a $2 per share dividend to the common stock.

On January 2, 2011, Winstead & Company purchased 1,100,000 shares of the Secrest Company for $32.0 million. The investment represented 40 percent of the outstanding common shares of The Secrest Company. During 2011, Secrest reported net earnings of $1.05 per share and paid a cash dividend of $0.35 per share.

During 2012, Secrest reported net earnings of $1.5 per share and paid a cash dividend of $0.4 per share. Calculate the book value of Winstead's investment in Secrest as of December 31, 2011, and December 31, 2012.

P18-3

Eloisa corporation applies IFRS. Information about Eloisa corporation income before income tax of 633,000 for its year ended December 31 2017 includes:

1. CCA reported on the 2017 tax return exceeded depreciation reported on the income statement by 100,000$. This difference plus the 150,000 accumulated taxable temporary differences at jan 1 2017 is expected to reverse in equal amounts over the 4 year period from 2018-2021.
2. Dividends received from taxable Canadian corporation were 15,000$.
3. Rent collected in advance and included in taxable income as at December 31 2016 totalled 60,000$ for a 3 year period. OF THIS AMUNT, 40,000$ was reported as unearned for book purpose at December 31 2017. Eloisa reports unearned revenue as a current liability if it will be recognized in income within 12 months from the balance sheet date. Eloisa paid 2,880$ interest penalty for late income tax instalments. The interest penalty is not deductible for income tax purpose at any time.
4. Equipment was disposed during the year for 90,000$. The equipment had a cost of 105,00$ and accumulated depreciation to the rate of disposal of 37,000$. The total proceeds on the sale of these assets reduced the CCA class, in other words no gain or loss reported.
5. Eloisa recognized a 75,000$ loss on impairment of a long term investment whose value was considered impaired. He income tax act permits the loss to be deducted only when the investment is sold and the loss is actually realize. The investment was accounted for at amortized cost.
6. The tax rates are 30% for 2017 and 25% for 2018 and subsequent years. These rates have been enacted and known for the past 2 years.

A) calculate the balance in the deferred tax asset or deferred tax liability account at December 31 2016

A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,108.

a) Using effective-interest amortization, how much interest expense will be recognized in 2017?

b) Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2017 balance sheet?

c) Using straight-line amortization, what is the carrying value of the bonds on December 31, 2018?

d) What is interest expense for 2018, using straight-line amortization?

Six Measures of Solvency or Profitability

The following data were taken from the financial statements of Gates Inc. for the current fiscal year.

Assuming that total assets were $5,459,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.

When central banks publish data about BOP, what other analytical data do central banks present?

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2018 ($ in 000s): sales revenue, $18,300; cost of goods sold, $7,700; selling expenses, $1,450; general and administrative expenses, $950; interest revenue, $230; interest expense, $320. Income taxes have not yet been recorded. The company’s income tax rate is 20% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2018 ($ in 000s). All transactions are material in amount.

1. Investments were sold during the year at a loss of $370. Schembri also had unrealized gains of $470 for the year on investments.
2. One of the company’s factories was closed during the year. Restructuring costs incurred were $1,800.
3. During the year, Schembri completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP. The division had incurred a loss from operations of $710 in 2018 prior to the sale, and its assets were sold at a gain of $1,700.
4. In 2018, the company’s accountant discovered that depreciation expense in 2017 for the office building was understated by $350.
5. Negative foreign currency translation adjustment for the year totaled $420.

Required:
1. Prepare Schembri’s single, continuous multiple-step statement of comprehensive income for 2018, including earnings per share disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 200,000 shares were issued on July 1, 2018.
2. Prepare a separate statement of comprehensive income for 2018.