Olivia’s Outdoor Essentials produces gear for climbing, hiking, and camping. Last month, Olivia reported the following: Beginning Work in Process Inventory: $20,000 Ending Work in Process Inventory: $25,000 Beginning Finished Goods Inventory: $15,000 Ending Finished Goods Inventory: $13,000 Direct Labor: $60,000 Beginning Raw Materials Inventory: $20,000 New Raw Materials Purchased: $48,000 Ending Raw Materials Inventory: $10,000 Indirect Materials Used: $8,000 Indirect Labor: $10,000 Other Applied Manufacturing Overhead: $30,000

Required:

a. What was the Manufacturing Costs for the period?

b. What was the Cost of Goods Manufactured for the period?

c. What was the Cost of Goods Sold for the period?

Fairness of the Federal Estate Tax"

• Based on the information contained in the textbook, several arguments exist for the repeal of the estate tax. Using the Strayer Library or an Internet search, find an article from within the last three (3) years that makes a case for or against repealing estate taxes. Provide the link to the article, as well as a summary of its key ideas. Finally, share whether you agree or disagree with the concepts in the article. Justify your response.
• need to discussion

Discuss "Overhead Costs" and the difficulty it causes when dealing with manufacturing costs.

Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.

Ending Inventory=

Cost of Goods Sold=

2. Using FIFO, calculate ending inventory and cost of goods sold at October 31.

Ending Inventory=

Cost of Goods Sold=

3. Using LIFO, calculate ending inventory and cost of goods sold at October 31.

Ending Inventory=

Cost of Goods Sold=

4. Using weighted-average cost, calculate ending inventory and cost of goods sold at October 31. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Ending Inventory=

Cost of Goods Sold=

You have decided to open three snow cone stands for the summer, have hired college kids, and are using cash registers as outlined (you have a key to the cash register at each location, and so does the lead employee for each shift). You want to make sure that the sales are properly controlled. In your initial post, write a list of procedures for employees when ringing in sales and giving change, and then articulate the role of the lead employee at the end of the day.

During 2019 Canada Computer Company sold computers for $100,000 which includes a 2-year warranty. Warranties sold separately for $70,000 that requires the company to perform periodic services and to replace defective parts. In 2020, Canada Computer Company incurred actual warranty costs relative to 2019 computer sales of $5,000 for parts and $12,000 for labor.                                                                                            

Instructions

(a) Using the revenue warranty approach, prepare the entries to reflect the above transactions for 2019 and 2020. assuming Canada co. earn any unearned warranties equally over warranty life.

(b) The transactions of part (a) create what balance under current liabilities in the Dec 31, 2019 balance sheet?

38) Trent Corp. issued $800,000 of 8%, 5-year bonds at 102 on January 1, 2017. The straight-line method of amortization is used and the bonds pay interest annually on January 1. The amount of bond interest expense that Trent should report on its December 31, 2017, income statement is

Select one:

a. $60,800.

b. $67,200.

c. $65,280.

d. $64,000.

Solomon Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows:

Assume Solomon needs to allocate two major overhead costs ($70,600 of employee fringe benefits and $29,540 of indirect materials costs) among the three jobs.

Required

Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. (Round "Allocation rate" to 2 decimal places.)

Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.55 (given its target capital structure). Vandell has $8.71 million in debt that trades at par and pays an 7.7% interest rate. Vandell’s free cash flow (FCF0) is $1 million per year and is expected to grow at a constant rate of 5% a year. Both Vandell and Hastings pay a 40% combined federal and state tax rate. The risk-free rate of interest is 3% and the market risk premium is 7%. Hastings Corporation estimates that if it acquires Vandell Corporation, synergies will cause Vandell’s free cash flows to be $2.3 million, $3.0 million, $3.4 million, and $3.73 million at Years 1 through 4, respectively, after which the free cash flows will grow at a constant 5% rate. Hastings plans to assume Vandell’s $8.71 million in debt (which has an 7.7% interest rate) and raise additional debt financing at the time of the acquisition. Hastings estimates that interest payments will be $1.5 million each year for Years 1, 2, and 3. After Year 3, a target capital structure of 30% debt will be maintained. Interest at Year 4 will be $1.440 million, after which the interest and the tax shield will grow at 5%.

Indicate the range of possible prices that Hastings could bid for each share of Vandell common stock in an acquisition. Round your answers to the nearest cent. Do not round intermediate calculations. The bid for each share should range between $ per share and $ per share.

Goodfellow & Perkins gained a new client, Brookwood Pines Hospital (BPH), a private, not-for-profit hospital. The fiscal year-end for Brookwood Pines is June 30. You are performing the audit for the 2023 fiscal year-end.

The healthcare industry can be very complicated, especially in the area of billing for services provided. BPH contracts with private physician groups who use the hospital facilities, equipment, and nursing staff to treat patients. The physicians in the private group are not employees of the hospital; they are simply using the hospital facilities to treat patients. For example, a group of urologists have their own practice, separate from the hospital, where they treat patients. If one of the patients needs a surgical procedure that must be done at a hospital, then the attending urologist will approve the paperwork required to admit the patient to BPH. BPH offers inducements to the urologists so they will refer patients to BPH rather than a competing hospital. One of the inducements BPH offers is free office space in the hospital for the doctors to use when they are treating patients in the hospital.

After the doctor and hospital services are provided to the patient, the patient and/or the patient’s insurance company is billed. The doctor will bill for the services he or she provided, and the hospital will bill for the use of hospital facilities and staff. Doctors and hospitals bill using a coding system that is standardized across the healthcare industry and consists of three main code sets: ICD, CPT, and HCPCS. Using a coding system is more efficient and data-friendly compared to writing a narrative about the procedures performed. However, the coding system is very complex, with thousands of different codes for medical procedures and diagnoses. To complicate matters even more, for patients who are covered by government-sponsored Medicare or Medicaid, doctors and hospitals must adhere to complicated government regulations surrounding billings to Medicare and Medicaid.

As healthcare costs continue to rise each year, BPH administrators struggle to maintain consistent profitability. They look for ways to keep costs low and also to collect from patients and insurance companies as quickly as possible. In addition, BPH must have a strong risk management team to handle unique situations that may occur in hospitals such as malpractice lawsuits and periodic inspections by the state department of health and hospitals. Negative publicity for BPH could lead to decreased revenues if physicians decide to contract with a competing hospital.

You are completing the planning of the audit of accounts payable and payments system. A prenumbered voucher is used to record all payables. An IT application control performs the following procedures:

Given the information you have collected above about internal controls in the purchases process:

1.Evaluation: Evaluate the quality of internal controls for each assertion related to purchase transactions.

2. Analysis: For assertions where internal controls are determined to be strong, design appropriate tests of controls to test the assertion. You may assume that IT general controls have previously been tested and found effective.

3 Analysis and evaluation: For assertions where internal controls are weak, prepare a recommendation to management identifying the weakness, the risk of misstatement associated with the weakness, and a recommended control to correct the weaknesses.

The following business transactions were completed by Rialto Theatre Corporation from January 1 to 31, 2019.

1. Received and deposited in a bank account $500,000 for capital stock.
2. Purchased the Twin City Drive-In Theatre for $1,000,000, allocated as follows: land $300,000; buildings $375,000; equipment $325,000. Paid $400,000 in cash and gave a mortgage note for the remainder.
3. Entered into a contract for the operation of the refreshment stand concession at a rental of 10% of the concessionaire’s sales, with a guaranteed minimum of $5,000 a month, payable in advance. Received cash of $5,000 as the advance payment for January.
4. Paid premiums for property and casualty insurance policies, $30,000.
5. Purchased supplies, $7,500 and equipment, $14,500, on account.
6. Paid for January billboard and newspaper advertising, $6,500.
7. Cash received from admission for the first week, $34,000.
8. Paid miscellaneous expense, $2,200.
1. Paid semimonthly wages, $24,000.
10. Cash received for admission for the second week, $36,000.
11. Paid miscellaneous expense, $1,750.
50. Paid cash to creditors on account, $20,900.
1000. Cash received for admissions for the third week, $41,500.
14. Purchased supplies for cash, $1,700.
15. Paid for advertising leaflets for June, $1,500.
16. Recorded invoice of $45,000 for rental of film for January. Payment is due on February.
17. Paid electricity and water bills, $6,000.
18. Paid semimonthly wages, $24,500.
19. Cash received from admissions for the fourth week of the month, $37,000.
20. Recorded additional amount owed by the concessionaire for the month of January; sales for the month totaled $55,000. Rental charges in excess of the advance payment of $5,000 are not due and payable until February.

Prepare the financial statements (including the trial balance) and calculate the Acid Test Ratio, the Assets Turnover Ratio and the Return on Equity for Rialto Theatre Company for January 2019.

A firm has been experiencing low profitability in recent years. Perform an analysis of the firm's financial position using the DuPont equation. The firm has no lease payments but has a $1 million sinking fund payment on its debt. The most recent industry average ratios and the firm's financial statements are as follows:

^aCalculation is based on a 365-day year.

1. Calculate the following ratios. Do not round intermediate calculations. Round your answers to two decimal places.

   	Firm	Industry Average
   Current ratio	x	4.30x
   Debt to total capital	%	18.23%
   Times interest earned	x	5.57x
   EBITDA coverage	x	8.66x
   Inventory turnover	x	9.42x
   Days sales outstanding	days	31.46 days
   Fixed assets turnover	x	6.14x
   Total assets turnover	x	2.90x
   Profit margin	%	3.28%
   Return on total assets	%	10.42%
   Return on common equity	%	15.03%
   Return on invested capital	%	13.79%

2. Construct a DuPont equation for the firm and the industry. Do not round intermediate calculations. Round your answers to two decimal places.

   	Firm	Industry
   Profit margin	%	3.28%
   Total assets turnover	x	2.90x
   Equity multiplier	x	x

3. Do the balance sheet accounts or the income statement figures seem to be primarily responsible for the low profits?
   -Select-IIIIIIIVVItem 17
   1. Analysis of the extended Du Pont equation and the set of ratios shows that the turnover ratio of sales to assets is quite low; however, its profit margin compares favorably with the industry average. Either sales should be lower given the present level of assets, or the firm is carrying less assets than it needs to support its sales.
   2. Analysis of the extended Du Pont equation and the set of ratios shows that most of the Asset Management ratios are below the averages. Either assets should be higher given the present level of sales, or the firm is carrying less assets than it needs to support its sales.
   3. The low ROE for the firm is due to the fact that the firm is utilizing more debt than the average firm in the industry and the low ROA is mainly a result of an excess investment in assets.
   4. The low ROE for the firm is due to the fact that the firm is utilizing less debt than the average firm in the industry and the low ROA is mainly a result of an lower than average investment in assets.
   5. Analysis of the extended Du Pont equation and the set of ratios shows that the turnover ratio of sales to assets is quite low; however, its profit margin compares favorably with the industry average. Either sales should be higher given the present level of assets, or the firm is carrying more assets than it needs to support its sales.
      
4. Which specific accounts seem to be most out of line relative to other firms in the industry?
   -Select-IIIIIIIVVItem 18
   1. The accounts which seem to be most out of line include the following ratios: Inventory Turnover, Days Sales Outstanding, Fixed Asset Turnover, Profit Margin, and Return on Equity.
   2. The accounts which seem to be most out of line include the following ratios: Inventory Turnover, Days Sales Outstanding, Total Asset Turnover, Return on Assets, and Return on Equity.
   3. The accounts which seem to be most out of line include the following ratios: Current, EBITDA Coverage, Inventory Turnover, Days Sales Outstanding, and Return on Equity.
   4. The accounts which seem to be most out of line include the following ratios: Debt to Total Capital, Inventory Turnover, Total Asset Turnover, Return on Assets, and Profit Margin.
   5. The accounts which seem to be most out of line include the following ratios: Times Interest Earned, Total Asset Turnover, Profit Margin, Return on Assets, and Return on Equity.
      
5. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis?
   -Select-IIIIIIIVVItem 19
   1. If the firm had sharp seasonal sales patterns, or if it grew rapidly during the year, many ratios would most likely be distorted.
   2. It is more important to adjust the debt ratio than the inventory turnover ratio to account for any seasonal fluctuations.
   3. Seasonal sales patterns would most likely affect the profitability ratios, with little effect on asset management ratios. Rapid growth would not substantially affect your analysis.
   4. Rapid growth would most likely affect the coverage ratios, with little effect on asset management ratios. Seasonal sales patterns would not substantially affect your analysis.
   5. Seasonal sales patterns would most likely affect the liquidity ratios, with little effect on asset management ratios. Rapid growth would not substantially affect your analysis.
      
   
   How might you correct for such potential problems?
   -Select-IIIIIIIVVItem 20
   1. It is possible to correct for such problems by comparing the calculated ratios to the ratios of firms in the same industry group over an extended period.
   2. There is no need to correct for these potential problems since you are comparing the calculated ratios to the ratios of firms in the same industry group.
   3. It is possible to correct for such problems by insuring that all firms in the same industry group are using the same accounting techniques.
   4. It is possible to correct for such problems by using average rather than end-of-period financial statement information.
   5. It is possible to correct for such problems by comparing the calculated ratios to the ratios of firms in a different line of business.

A list of accounts for Maple Inc. at 12/31/2017 follows:

Accounts Receivable $2,359 Advertising Expense 4,510

Buildings and Equipment, Net 55,550

Capital Stock 50,000 Cash 590

Depreciation Expense 2,300 Dividends 6,000

Income Tax Expense 3,200 Income Tax Payable 3,200

Interest Receivable 100 Inventory: January 1, 2017 6,400

Inventory: December 31, 2017 7,500 Land 20,000

Net purchases 39,400 Retained Earnings, January 1, 2017 32,550

Salaries Expense 25,600 Salaries Payable 650

Net sales 83,584 Transportation-In 375

Utilities Expense 3,600

MAPLE INC. BALANCE SHEET AT DECEMBER 31, 2017

Assets Current assets:

Cash $ T $ T $ T $

Total current assets F

Property, plant, and equipment: T $ T $

Total property, plant, and equipment F

Total assets F Liabilities

Current liabilities: T $ T $

Total liabilities F Stockholders' Equity T $ T $

Total stockholders' equity F

Total liabilities and stockholders' equity F

what are some of the things that all three firms offer to motivate new employees

Record the following transactions for the month of January of a small finishing retailer, balance off all the accounts, and then extract a trial balance as at 31 January 20X8: 20X8

Jan 1 Started in business with £10,500 cash.

2 Put £9,000 of the cash into a bank account.

3 Bought goods for cash £550.

4 Bought goods on credit from: T Dry £800; F Hood £930; M Smith £160; G Low £510.

5 Bought stationery on credit from Buttons Ltd £89.

6 Sold goods on credit to: R Tong £170; L Fish £240; M Singh £326; A Tom £204.

8 Paid rent by cheque £220.

10 Bought fixtures on credit from Chiefs Ltd £610.

11 Paid salaries in cash £790.

14 Returned goods to: F Hood £30; M Smith £42.

15 Bought van by cheque £6,500.

16 Received loan from B Barclay by cheque £2,000.

18 Goods returned to us by: R Tong £5; M Singh £20.

21 Cash sales £145.

24 Sold goods on credit to: L Fish £130; A Tom £410; R Pleat £158.

26 We paid the following by cheque: F Hood £900; M Smith £118.

29 Received cheques from: R Pleat £158; L Fish £370.

30 Received a further loan from B Barclay by cash £500.

30 Received £614 cash from A Tom.