Enlighten on how can one conduct sensitivity analysis by using CVP analysis, what is the relevance in managerial decision making?

Exercise 4-13 At December 31, 2016, Grouper Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 107,710 shares $10,771,000 Common stock, $5 par, 4,024,000 shares 20,120,000 During 2017, Grouper did not issue any additional common stock. The following also occurred during 2017. Income from continuing operations before taxes $21,850,000 Discontinued operations (loss before taxes) $3,295,000 Preferred dividends declared $1,077,100 Common dividends declared $2,380,000 Effective tax rate 35 % Compute earnings per share data as it should appear in the 2017 income statement of Grouper Corporation. (Round answers to 2 decimal places, e.g. 1.48.)

The following balance sheet, which has some weaknesses in terminology and classification, has been prepared by an inexperienced accountant and submitted to you for review:

Required:
Prepare a classified balance sheet in proper form. Make any necessary corrections.

(1)        The standard costs of wooden ducks on wheels, for the CURRENT year, for 5 mm board and for cutting are as follows:-

            5 mm board: 0.2 sq. metre at £4.50 per sq. metre.

            Cutters: 1.5 minutes at £7.20 per hour.

In the most recent period, 120 wooden ducks on wheels were produced.

25 sq. metres of 5 mm board were requisitioned from stores at a total cost of £110.

            2.75 hours were recorded for cutters at a total cost of £22.

            Required

(a)        Calculate the material price variance and material usage variance for 5 mm board

(ii)        Calculate the wage rate variance and labour efficiency variance for cutters

Suggest possible reasons for the variances calculated.

(2)        Given standard cost per unit:

            Direct materials (4 kg. @ 75p per kg)

            Direct labour (2 hrs @ £1.60 per hr)

            Actual details are:

            Calculate:        Material and labour variances.

1.Carlson, a citizen and resident of Denmark, is a commodities dealer operating in Copenhagen. During the tax year, Carlson, by e-mail from her home office, purchased several carloads of wheat. She took title to the wheat in Minneapolis. The wheat was sold to the government of India, FOB New York City, where the wheat was placed aboard a Liberian flag vessel. Carlson has never been to the United States. While she has occasionally purchased U.S. commodities in the past, this is her sole transaction in the United States during the current year. Does she have any potential U.S. income tax liability? 5. Rosario, a corporation organized in Argentina, sells consumer products to retailers in the main cities of that country. Rosario has no office in the United States.

2.Rosario sales representatives in Argentina send orders to a purchasing agent in New York. The purchasing agent purchases the products from U.S. manufacturers in Rosario’s name. The products are shipped to Miami and delivered to vessels bound for Argentina. Orders are accepted in Argentina. Title to the goods is transferred to customers at the port of destination. However, the customers have agreed contractually to insure against all losses attributable to shipwreck, fire and accident while the goods are in transit. The Argentine customers make payment to an account maintained by Rosario in Switzerland. Does Rosario have any liability for U.S. taxes? Would your answer differ if the purchasing agent is properly characterized as an “independent agent”?

eBookCalculator Effect of Proposals on Divisional Performance A condensed income statement for the Jet Ski Division of Amazing Rides Inc. for the year ended December 31, 20Y2, is as follows: Sales $3,720,000 Cost of goods sold (2,666,600) Gross profit $ 1,053,400 Operating expenses (607,000) Operating income $ 446,400 Invested assets $3,100,000 Assume that the Jet Ski Division received no charges from service departments. The president of Amazing Rides has indicated that the division’s rate of return on a $3,100,000 investment must be increased to at least 16.8% by the end of the next year if operations are to continue. The division manager is considering the following three proposals: Proposal 1: Transfer equipment with a book value of $620,000 to other divisions at no gain or loss and lease similar equipment. The annual lease payments would exceed the amount of depreciation expense on the old equipment by $111,600. This increase in expense would be included as part of the cost of goods sold. Sales would remain unchanged. Proposal 2: Purchase new and more efficient machining equipment and thereby reduce the cost of goods sold by $409,200. Sales would remain unchanged, and the old equipment, which has no remaining book value, would be scrapped at no gain or loss. The new equipment would increase invested assets by an additional $1,550,000 for the year. Proposal 3: Reduce invested assets by discontinuing the tandem jet ski line. This action would eliminate sales of $658,800, cost of goods sold of $440,200, and operating expenses of $193,800. Assets of $1,569,500 would be transferred to other divisions at no gain or loss. Required: 1. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment for the Jet Ski Division for the past year. For investment turnover and ROI, round to one decimal place. Jet Ski Division Profit margin % Investment turnover ROI % Feedback 2. Prepare condensed estimated income statements and compute the invested assets for each proposal. Amazing Rides Inc.-Jet Ski Division Estimated Income Statements For the Year Ended December 31, 20Y2 Proposal 1 Proposal 2 Proposal 3 Sales $ $ $ Cost of goods sold Gross profit $ $ $ Operating expenses Operating income $ $ $ Invested assets $ $ $ Feedback 3. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment for each proposal. Round interim calculations (including previously calculated) and final answer to one decimal place. Profit margin Investment turnover ROI Proposal 1: % % Proposal 2: % % Proposal 3: % % 4. Select whether each of the three proposals would meet the required 16.8% return on investment. Proposal 1: No Proposal 2: Yes Proposal 3: Yes 5. If the Jet Ski Division were in an industry where the profit margin could not be increased, how much would the investment turnover have to increase to meet the president's required 16.8% return on investment? Round intermediate calculations to two decimal places and your final answer to one decimal place. %

Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $430,000 for a standard production run that generates 200,000 pints of Smooth Skin and 170,000 pints of Silken Skin. Smooth Skin sells for $4.00 per pint, while Silken Skin sells for $5.20 per pint. (Do not round intermediate calculations. Round final answers to nearest whole dollar amounts.)

Required: 1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method?

2. If no separable costs are incurred after the split-off point, how much of the joint cost of each production run is allocated to Silken Skin using the physical measure method?

3. If separable processing costs beyond the split-off point are $1.40 per pint for Smooth Skin and $1.40 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method?

4. If separable processing costs beyond the split-off point are $1.40 per pint for Smooth Skin and $1.40 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Smooth Skin using a physical measure method?

[The following information applies to the questions displayed below.]

Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to penetrate some of the country's rural regions. The company expects to distribute 450,000 cases of products in Brazil next month. The controller has classified operating costs (excluding costs of the distributed product) as follows:

Although overhead costs were related to revenues throughout the company, the experience in Brazil suggested to the managers that they should incorporate information from a published index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business.

Following instructions from the corporate offices, the controller's office in Brazil collected the following information for monthly operations from last year:

These data are considered representative for both past and future operations in Brazil.

Determine the variable cost per case assuming that 450,000 cases will be shipped next month based on the controller's analysis of accounts. (round your answer to 2 decimal places).

VARIABLE COST PER CASE _______?_____

Prepare an estimate of operating costs

ESTIMATE OF OPERATING COST _________?_________

Use the high-low method to compute an estimate of operating costs assuming that,450,000 cases will be shipped next month. (Round variable cost to 5 decimal places. Round
intermediate calculations and final answer to the nearest whole dollar amount).

ESTIMATE OF OPERATING COST    _____?__________

Enter the regression coefficients. (Round "Cases" to 5 decimal places.)

INTERCEPT _____?______
CASES ____?_______

Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a simple regression
of operating costs on cases shipped. (Round variable costs per unit to 5 decimal places. Round the intercept and final answer to the nearest
whole dollar amount)

ESTIMATE OF OPERATING COST    _____?___________

Enter the regression coefficients. (Round "Cases" to 5 decimal places and "Price Index" to 5 decimal places.)

INTERCEPT    _______?__________
CASES    _______?__________
PRICE INDEX _________?________

Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a multiple regression
of operating costs on cases shipped and the price level. Assume a price level of 146 for next month. (Round "Cases" and "Price Index" to 5 decimals
places. Round the final answer to the nearest whole dollar amount.

ESTIMATE OF OPERATING COST    ________?______________

Question 6: The following selected information is from Imagine Corporation’s partial aging schedule at the end of August:

Number of Days Outstanding:   Accounts Receivable:   Estimated Percentage Uncollectible: Estimated Uncollectible Accounts

0-30 days $280, 000 1%

31-60 days $90,000 3%

61-90 days $45,000 10%

Over 90 days $18,000 15%

Total: $433,000

The unadjusted balance in Allowance for Doubtful Accounts is a debit of $4,300.

Required

(a) Complete the aging schedule and calculate the total estimated uncollectible accounts from the above information.

(b) Prepare the adjusting journal entry to record the bad debts for the month using the information determined in part (a)

(c) In September, management determined that $4,200 of the outstanding receivables were uncollectible. Prepare the journal entry to write off the uncollectible amount.

(d) Imagine Corporation subsequently collected $2,300 of the $4,200 that was determined to be uncollectible in part (c). Prepare the journal entry(ies) to record the collection.

After several months of planning, Denise Murphy started a property management business for

the for the properties that its owners invest called ABC Property Management (“ABC”). The

following events occurred during its first month:

1. On May 1, Murphy started the firm, investing $3,000 cash and $15,000 of equipment.
2. On May 2, ABC paid $600 cash for furniture for the shop.
3. On May 3, ABC paid $500 cash to rent space in a strip mall for May.
4. On May 4, ABC purchased $1,200 of equipment on credit for the shop (using a long-term note payable).
5. On May 5, ABC opened for business. Cash received from services provided in the first week and a half of business (ended May 15) is $825.
6. On May 15, it provided $100 of property management services on account (invoiced).
7. On May 17, it received a $100 check for services previously rendered on account.
8. On May 17, it paid $125 to an assistant for work during the store opening.
9. Cash received from services provided during the second half of May is $930.
10. On May 31, it paid an $400 installment toward principal on the note payable entered into on May 4.
11. On May 31, it paid $900 cash dividends to Murphy.

1. Set-up T-accounts for each of the accounts and post the journal entries completed in Homework 2 to those T-accounts (Please note it is the same Problem as in Homework 2).
2. Prepare a simplified balance sheet and income statement.

Some nonfinancial factors included in capital investment decisions are more important now than they were 20-25 years ago. Give some examples of the types of nonfinancial factors that managers would consider more important in today's capital investment decisions than they were in the past.

The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:

The following additional information is taken from the records:

1. Land was sold for $45.
2. Equipment was acquired for cash.
3. There were no disposals of equipment during the year.
4. The common stock was issued for cash.
5. There was a $139 credit to Retained Earnings for net income.
6. There was a $43 debit to Retained Earnings for cash dividends declared.

a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

b. Was Olson-Jones Industries Inc.’s net cash flow from operations more or less than net income?

Amortization and Impairment Testing of Identifiable Intangible Assets

During the year ended July 30, 2016, Cisco Systems, Inc. acquired the following identifiable intangible assets through its purchase of two companies (in thousands):

Cisco acquired Lancope, Inc. in December 2015, and Jasper Technologies, Inc. in March 2016. Cisco separately tests identifiable intangibles acquired from each company for impairment, and collects the following information to conduct impairment tests at the end of fiscal 2016 (in thousands):

Required

a. Calculate amortization expense for the above identifiable intangibles for fiscal 2016. Intangibles are amortized on a straight-line basis starting in the month following acquisition.

• Round answers to the nearest whole number.
• Enter answers in thousands.

b. Calculate impairment losses for fiscal 2016.

• Round answers to the nearest whole number.
• Enter answers in thousands.

c. Determine the amounts reported on Cisco’s fiscal 2016 balance sheet for technology, customer relationships, and in-process R&D.

• Round answers to the nearest whole number.
• Enter answers in thousands.

Statement: I do not need to know accounting. I can hire an accountant.

Problem statement: If you do not know accounting, how do you know your business is performed effectively?

Open ended questions:

The impact of disruptive technologies on

1. accounting education, how should you as a business and technology student adapt? (100-500 words)
2. accounting practice, how should you as a business and technology student get ready for working? (100-500 words)
3. business practice, how should business can get ready for the technologies change? (100-500 words)