Q3. In thrift banks in USA, the structure of income has been changed because the intermediation role is no longer the main source of income, discuss this statement and explain the structure of income of banks in Saudi Arabia. Accounting for Financial Institution

Forensic Audits. Present arguments that you believe a forensic audit will never become an accepted fraud detection practice.

Problem B, Cash Flow CWH (unrelated to Problem A) provides you with comparative statements of financial position and some additional information. Using the indirect method, calculate cash flow from operating activities. Then as best you can, calculate cash inflow/outflow from Investing activities and from Financing activities (you’ll need to make assumptions, you do not have complete information and it isn’t available).

12/31/19 12/31/2020

Cash .................................................................. $ 5,000 $ 17,000

Accounts receivable .......................................... 35,000 45,000

Inventory........................................................... 75,000 63,000

Total current assets ........................................... 115,000 125,000

Land .................................................................. 100,000 100,000

Buildings........................................................... 5,000,000 5,000,000

Equipment......................................................... 12,000,000 21,000,000

Accumulated Depreciation................................ (4,000,000) (4,750,000)

Net PP&E.......................................................... 13,100,000 21,350,000

Patents............................................................... 7,000,000 5,800,000

Total Assets....................................................... $20,215,000 $27,275,000

Accounts payable .............................................. $ 21,000 $ 45,000

Accrued expenses.............................................. 25,000 60,000

Income taxes payable........................................ 12,000 35,000

Total current liabilities...................................... 58,000 140,000

Long term debt.................................................. 12,000,000 16,000,000

Common stock .................................................. 1,500,000 2,000,000

Retained earnings.............................................. 6,657,000 9,135,000

Total Liabilities and Equity .............................. $20,215,000 $27,275,000

[NOTE: I have posted an Excel spreadsheet with the above information for your use, if you wish. If you do that, please just cut and paste a copy into your word submission. Make sure it’s readable, probably need to format the page as landscape format, not portrait.]

Additional information provided:

• Net income = $2,600,000

• Dividends were declared and paid during the year.

• Depreciation expense = $750,000

• Make reasonable assumptions as need be.

Required:

1. Calculate cash flow from operating activities, showing your complete calculation. The number alone is not sufficient.

2. Calculate cash provided by/used in investing activities (you’ll need to make some assumptions).

3. Calculate cash provided by /used in financing activities (again, you’ll need to make some assumptions)

4. Show that the sum of the three cash flow numbers is equal to the change in cash.

Accounting 2

E13-17 Compute earnings per share under different assumptions:

At December 31, 2014 Millwood Corporation has 2,000 shares of $100 par value, 8% preferred stock outstanding and 100,000 shares of $10 par value common stock issues. Millwoods net income for the year is $241,000.

Instructions: Compute the earnings per share of common stock under the following independent situations:

a. The dividend to preferred stockholders was declared. There has been no change in the number of shares of common stock outstanding during the year.

b. The dividend to preferred stockholders was not declared. The preferred stock is cumulative. Millwood held 10,000 shares of treasury stock throughout the year.

I reviewed the previous answers to this question. Part a I understand, but part b. there are conflictual answers on your webstite. Can you show me part b step by step and explain cumulative

18. Blue Inc. Utilizes a Periodic LIFO inventory method. They make the following purchases and sales.

August 3rd: Purchases 100 units at $20 per unit

August 10th: Purchases 150 units at $25 per unit

August 15th: Sells 125 units at $45 per unit

August 23rd: Purchases 50 units at $35 per unit

August 30th: Sells 75 units at $55 per unit

What is the value of Blue Inc. inventory at the end of August assuming they started with no inventory?

1. $2,000

2. $3,000

3. $8,000

4. $2,500

Question 2

19. Red Corp. utilizes a periodic FIFO inventory method. They make the following purchases and sales

January 7th: Purchases 3,000 units at $50 per unit

January 10th: Sells 100 units at $75 per unit

January 15th: Purchases 175 units at $60 per unit

January 22nd: Sells 250 Units at $85 per unit

January 26th: Sells 50 units at $95 per unit

What was COGS for Red Corp during the month of january assuming they started with no inventory?

1. $4,500

2. $ 21,000

3. $21,750

4. $33,500

Question 3

20. Orange LLC. utilizes a periodic weighted average inventory method. They make the following purchases and sales

May 2nd: Purchases 100 units at $15 per unit

May 7th: Sells 75 units at $35 per unit

May 12th: Purchases 125 units at $25 per unit

May 25th: Sells 75 units at $45 per unit

What was Orange LLC. COGS for the month of may assuming they did not have any initial inventory?

1. $2,569.44

2. $ 4,111.11

3. $ 4,625.00

4. $3.083.33

Question 4

22. Pink Co. purchases 40 units of inventory at $50 per unit. After having the inventory on hand for a period of time, they find the Net Realizable value of each unit to be $65 . What will Pink Co. record for the total value of the inventory?

1. $600

2. $ 2,000

3. $ 3,250

4. $2,600

8 Purchased 8 units BG90 plasma televisions from Mega Tech at $1,496 each (includes 10% GST), Purchase #331, Supplier Inv#216.

10 - Made a cash sale to Hypertronics, Invoice #3595 for the following items:

• 2 units BG90 plasma televisions for $2,310 each (includes 10% GST)
• 11 units BlueBerry phones for $1,320 each (includes 10% GST).

Received Cheque No. 654 for $19,140 from this customer. Note that MYOB automatically assigns ID #CR000005 to this cash receipt.

13Received a purchase order from Turbo Tech, Customer PO#9579, Invoice #3596. The following items are required to be shipped by 23 January 2020:

• 6 units BG90 plasma televisions at $2,310 each (includes 10% GST)
• 9 units Swish Phones at $2,750 each, (includes 10% GST).

15-Purchased 6 units ZII game consoles from Mega Tech for a list price of $1,210 each (includes 10% GST), Purchase #332, Supplier Inv#424. Issued Cheque No. 4034 for the full payment of this purchase.

15--Issued Cheque No. 4035 for $7,700 (includes 10% GST) to pay ZNG Property Group for three month's worth of rent in advance.

17--Sold merchandise on credit to Radio Hut, Invoice #3597. The items sold were:

• 7 units BlueBerry phones for $1,320 each (includes 10% GST)
• 2 units ZII game consoles for $1,870 each (includes 10% GST).

17--Ordered 9 units Swish Phones for $1,782 each (includes 10% GST), from Pony, Purchase #333, Supplier Inv#SO646.

19--Received 9 units Swish Phones, Purchase #333. These items were ordered from Pony for $1,782 each (includes 10% GST), Supplier Inv#SO646.

general journal and general ledger?

Suppose Dave is a junior manager of Hollywood Gym at NYC. There are 1000 members to be acquired. Monthly membership fee is $25, monthly variable cost (including retention cost) is $10 and acquisition cost is $30. The membership renewal data for the past several years shows average monthly retention rate is 80%.

The company executive provides some limited budget for a new marketing campaign. According to Dave’s estimation, it costs $3/month to increase the monthly retention rate by 10% (thus upto 88%) by giving them coupons and gifts.   

Therefore, within the limitation of the marketing budget, he can either A) spend $3 per person per month to increase the retention rate to 88%, or B) acquire 10% more new members.

Which would you recommend to Dave between A) and B)?

1) Use the following formula (annual discount rate=10%).


??? =
(??????? −???????? ????) ×(1+???????? ????) (1+???????? ???? −????????? ????)
−??????????? ????


※ The CLV formula above looks different from that in the lecture slide. Why?


2) Compute CLV for 1-year horizon (12 months) and compare the result with that in 1). In this case, please use Excel.

Arensky Company uses normal costing to account for overhead in its job costing system. There are 2 departments in the company: Designing and Machining. The Designing Dept. is labor intensive; the Machining Dept. is machine intensive. (OH= Overhead; DLH= Direct Labor Hours; MH= Machine Hours.) The budget for 2019 is as follows:

Designing   Machining

Est. OH $2,000,000 $5,600,000

Est DLH 40,000 Hours 10,000 Hours

Est MH. 20,000 Hours 70,000 Hours

Actual Results are as follows:

Designing Machining

Actual OH $2,100,000 $5,650,000

Actual DLH 41,500 Hours 11,000 Hours

Actual MH 19,800 Hours 72,000 Hours

A. Using the most logical allocation base, Calculate the OH Allocation rate for each department. Be sure to state your final answer in proper units.

B. For Each Department, Calculate How much OH is Allocated

C. For Each Department, Give the journal entry to record-over or under-allocated overhead

D. Why is Normal Costing Method preferred to the Actual Costing Method.

Each unit requires 0.25 hour of direct labor.

Required:

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Create a comparing table for managerial and financial acoounting on the positions you concider the most important. Supply your choice with explanations.

John and Tara Smith are married and have lived in the same home for over 20 years. John's uncle Tim, who is 64 years old, has lived with the Smiths since March of this year. Tim is searching for employment but has been unable to find any—his gross income for the year is $2,000. Tim used all $2,000 toward his own support. The Smiths provided the rest of Tim's support by providing him with lodging valued at $5,000 and food valued at $2,200. Assume the original facts except that Tim earned $10,000 and used all the funds for his own support. Assume the original facts except that Tim is a friend of the family and not John's uncle

Competency

Evaluate the threats and risks associated with accounting information systems.

Scenario Information

BeGood Baking Supply is a small bakery supply company formed as a closely held corporation. The company supplies raw baking materials, paper goods, and equipment to restaurants and bakeries in three states in the upper mid-west. Most of its business, however, is located in a large metropolitan area. BeGood wants to increase its presence in the region and serve five states. In fact, the owners of BeGood would like 75% of their business to come from throughout the region rather than the current metropolitan area. In order to do this, the owners understand they must diversify offerings and lines of business.

Currently, BeGood has a phone center where customer orders are taken; these orders are then sent to shipping where the order is filled in its large warehouse and shipped within four days. BeGood outsources its shipping to a local trucking company. Once the order ships, all paperwork goes to the accounting department where it is entered into the accounting system. BeGood still uses the same accounting system it has used since the inception of the company. All aging of receivables and other analysis is done using Excel spreadsheets. Purchasing and tracking of inventory are done solely by the warehouse manager. Invoices for inventory purchasing are sent to the accounting department when goods are received.

The owners at BeGood are wondering how they can utilize an online presence and further automate its systems in order to facilitate its growth and diversify its business. The owners may also like to expand into the retail business.

You have been hired as a full-time staff accountant at BeGood Baking Supply, and have been given the task of evaluating and recommending a viable accounting information system for the accounting and financial data of BeGood in order to facilitate expansion and diversification. As you begin your research, you realize that many departments are involved in the information system, and communication is key.

Instructions

As part of the BeGood AIS assessment, you must address risks, threats, and controls in compliance with the COSO framework. You know the external auditor will also want this information, so you decide to document it now. In preparation for the company external audit, you prepare the following documentation to assist the audit team in starting their work:

1. Document a new AIS with a flowchart that will address the size and scope of BeGood in its current form.
2. List at least three vulnerabilities and appropriate control measures to manage the vulnerabilities for each function (department) within the flowchart.
3. Devise controls based on threats in a general ledger reporting system.
4. Evaluate at least one security policy or procedure that would minimize threats and risks.

QUESTION 1

The inventory records of Frost Company for the years 2016 and 2017 reveal the cost and market of the January 1, 2016, inventory to be $125,000. On December 31, 2016, the cost of inventory was $130,000, while the market value was only $128,000. The December 31, 2017, market value of inventory was $140,000, and the cost was only $135,000. Frost uses a perpetual inventory system.

general journal

Assume Frost uses the allowance method and a perpetual inventory system.