As an employee, write an internal memo to your manager addressing the following: Suggest several ways (other than raising prices) a medical practice can maximize the
contribution margin per unit of this limiting resource. identify the factor that you believe is most likelyto limit potential output capacity

Research should be memo and  should include the following five sections:

(1) Facts, (2) Issue, (3) Authorities, (4) Conclusion, and (5) Analysis.

Scenario. Mary and John were married during the years at issue (i.e., years 2014, 2015, and 2016). They separated in 2016 and divorced in 2017 after nearly 20 years of marriage. At the time Mary filed her petition, she resided in Maryland. She holds a high school diploma and attended the University of Delaware for six months, taking noncredit courses in the data processing. While married, Mary and John owned the marital home, two rental properties and a farm. As having a large blended family, they owned a large van in addition to two pickup trucks and an Oldsmobile Cutlass, which John described as a "classic car". They took family vacations each year, including trips to Bermuda and Mexico. They enjoyed camping, and throughout the years they purchased several campers, which they used on family camping trips every few months. John owned VIP Builders, which was the primary source of the family's income. Established in the early 1990s, VIP Builders is a home improvement company focusing on residential remodeling. A carpenter by trade, John operated the business, but he did not have the bookkeeping background to maintain the company's records. He hired Mary to be the company's bookkeeper and office manager. Their relationship blossomed, and they eventually wed. Mary was VIP Builders' bookkeeper/office manager for approximately 20 years, including the years at issue. She developed and maintained the accounting program used by the business. Her duties included: (1) managing the company's financial records, bank accounts, and American Express credit card account; (2) managing the company's "end of the month check run", which reconciled all charge accounts that VIP Builders had from its vendors, roofing suppliers, lumber yards, plumbing supply houses, and other subcontractors; (3) reconciling the company's bank and credit card statements; (4) managing the accounts payable and accounts receivable; (5) tracking inventory; and (6) managing the company's payroll. To these ends, Mary had the authority to write and sign checks on behalf of VIP Builders, deposit money into the company's accounts, and prepare checks and receipts for the business. Mary was familiar with VIP Builders' clients and knew, or at least could have learned, the amounts they paid the company. Before becoming VIP Builders' bookkeeper, she had other experience in accounting. When Mary managed VIP Builders' finances, her duties included the end-of-year accounting for the company. She reviewed the company's books and provided information and documents to the company's certified public accountant (C.P.A.), Joe Taigi, who prepared Mary and John's joint tax returns. Mary also met and interacted with Mr. Taigi during the years involved. She admitted to "booking things wrong" for VIP Builders and was advised that she had done so by Mr. Taigi. 2 For 2014 Mary and John's joint returns underreported income attributable to VIP Builders; for 2015 the returns underreported income and overstated expenses attributable to VIP Builders. The IRS made no adjustments with respect to VIP Builders for 2016. In addition to working for VIP Builders, Mary operated a horse care and boarding business on the farm that she and John owned. She exclusively controlled the business, and under her stewardship, the business' income for each of the years involved was underreported. All adjustments made by the IRS for 2016 were due to underreported income with respect to the horse care and boarding business. Mary wrote checks drawn on VIP Builders' bank account to herself, and she used the VIP Builders' American Express credit card to pay horse care and boarding business and household expenses. Mary was given the joint income tax returns for 2014, 2015, and 2016 before they were filed, but she did not review them before signing them. Mary was not a victim of spousal abuse or domestic violence during the years involved. The IRS tries to collect the joint tax liabilities of years 2014-2016 from Mary. Instruction: Provide your advice to Mary who is appealing the case.

On December 31, 2018, Rhone-Metro Industries leased equipment to Western Soya Co. for a four-year period ending December 31, 2022, at which time possession of the leased asset will revert back to Rhone-Metro. The equipment cost Rhone-Metro $607,484 and has an expected useful life of six years. Its normal sales price is $607,484. The lessee-guaranteed residual value at December 31, 2022, is $25,000. Equal payments under the lease are $160,000 and are due on December 31 of each year. The first payment was made on December 31, 2018. Western Soya’s incremental borrowing rate is 8%. Western Soya knows the interest rate implicit in the lease payments is 6%. Both companies use straight-line depreciation. Use (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

1. Show how Rhone-Metro calculated the $160,000 annual lease payments.
2. How should this lease be classified (a) by Western Soya Co. (the lessee) and (b) by Rhone-Metro Industries (the lessor)?
3. Prepare the appropriate entries for both Western Soya Co. and Rhone-Metro on December 31, 2018.
4. Prepare an amortization schedule(s) describing the pattern of interest over the lease term for the lessee and the lessor.
5. Prepare all appropriate entries for both Western Soya and Rhone-Metro on December 31, 2019 (the second lease payment and depreciation).
6. Prepare the appropriate entries for both Western Soya and Rhone-Metro on December 31, 2022 assuming the equipment is returned to Rhone-Metro and the actual residual value on that date is $1,500.

Assignment

Wanda comes to you because she is discouraged and needs to talk. Her parents have heard she is thinking of expanding her business and even possibly taking out a second mortgage on her home to fund the expansion. They have never been overly supportive of her business, but as long as it seemed like a “hobby,” they didn’t have much to say. Recently Wanda’s mother called and expressed strong reservations about Wanda taking such a large step. This made a big impression on Wanda. She tells you that she doesn’t want her business to cause a rift in the family. Perhaps she should take her parents’ advice and just forget expanding the business. Moreover, she doesn’t understand why her parents aren’t as excited about the prospects for the business as she is.

Your Task

You decide that you are going to take matters into your own hands and go directly to the source of the problem, Wanda’s mother! In this assignment you will write a letter to Wanda’s mother and explain to her the positive characteristics of entrepreneurs Wanda is exhibiting and how you know she will be successful. You can compare Wanda’s start-up of Salty Pawz to other more well-known entrepreneurs who took a risk and succeeded, or you can recount your own experiences with an entrepreneur you know personally. The key is that Wanda’s mother understands that (1) it is not unusual for people to see things differently than the entrepreneur and (2) Wanda possesses many of the characteristics shared by successful entrepreneurs.

Q1) The Buffet Company produces and sells Parrot-head t-shirts. Income statements for two activity levels are provided below:

Required:

1. Identify the mixed expenses.
2. Use the high-low method to separate the mixed costs into variable and fixed components.
3. Prepare a contribution margin income statement at the 50,000 unit level.

__________________________________________________________________________________________________________________________

Q2) The Mean Cleaning Machine (MCM) Company and the Acme Cleaning Service provide janitorial services to commercial and residential customers in a major metropolitan area. MCM pays its employees $10 per hour for commercial jobs and $12.50 per hour for residential jobs. Acme pays its workers salaries. Acme’s total labor costs run $200,000 per year. Both companies charge their commercial customers an average of $15 per hour and the residential customers $25 per hour.

Required:

1. Prepare a contribution margin income statement for each company assuming they provide 15,000 hours of service to commercial customers and 4,000 hours of service to residential customers during the period and incurred no other expenses than those mentioned above.
2. A new service has recently entered the market specializing in residential cleaning at substantial lower rates. Both MCM and Ace are contemplating getting out of the residential business. Prepare a contribution margin income statement for each company assuming they do exit the residential business.
3. Which company will fare better if the residential business is eliminated? Why?

Campbell Manufacturing Company uses two departments to make its products. Department I is a cutting department that is machine intensive and uses very few employees. Machines cut and form parts and then place the finished parts on a conveyor belt that carries them to Department II, where they are assembled into finished goods. The assembly department is labor intensive and requires many workers to assemble parts into finished goods. The company’s manufacturing facility incurs two significant overhead costs: employee fringe benefits and utility costs. The annual costs of fringe benefits are $264,000 and utility costs are $192,000. The typical consumption patterns for the two departments are as follows:

The supervisor of each department receives a bonus based on how well the department controls costs. The company’s current policy requires using a single allocation base (machine hours or labor hours) to allocate the total overhead cost of $456,000.

Required

1. Assume that you are the supervisor of Department I. Choose the allocation base that would minimize your department’s share of the total overhead cost. Calculate the amount of overhead that would be allocated to both departments using the base that you selected.

2. Assume that you are the supervisor of Department II. Choose the allocation base that would minimize your department’s share of the total overhead cost. Calculate the amount of overhead that would be allocated to both departments using the base that you selected.

3. Assume that you are the plant manager and have the authority to change the company’s overhead allocation policy. Formulate an overhead allocation policy that would be fair to the supervisors of both Department I and Department II. Compute the overhead allocations for each department using your policy.

4. 	Department Allocated Cost I II Total

5. 	Department Allocated Cost I II Total

6. 	Costs Department I Department II Fringe benefits Utility Total

7. 	Costs Department I Department II Fringe benefits Utility Total

Explain why Ford would be violating U.S. GAAP if it recognized all related revenue at the time cash was received from customers, rather than recording any as deferred

On January 1, 2017, Sheridan Company purchased  9% bonds having a maturity value of $ 290,000, for $ 313,782.32. The bonds provide the bondholders with a  7% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Sheridan Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

a. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

b. Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)

c. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2017. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

d. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2018. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

FIFO versus LIFO: Ratio Analysis

Presented below are the financial statements of two companies that are identical in every respect except the method of valuing their inventories. The method of valuing inventory is LIFO for the LIFO Company and FIFO for the FIFO Company.

Required
Using the two sets of financial statements, calculate the ratios below for each firm. Ignore the effect of taxes (i.e., assume zero taxes for both firms).

Round all answers to nearest one decimal place, except for 10. Earnings per share (example for percentage ratios: 0.2345 = 23.5%).
Round Earnings per share two decimal places.

Presented below are the financial statements of two companies that are identical in every respect except the method of valuing their inventories. The method of valuing inventory is LIFO for the LIFO Company and FIFO for the FIFO Company.

On January 1, 2011, Garner issued 10-year $200,000 face value, 6% bonds at par. Each $1,000 bond is convertible into 30 shares of Garner $2, par value, ordinary shares. Interest on the bonds is paid annually on December 31. The market rate for Garner’s non-convertible debt is 9%. The company has had 10,000 ordinary shares (and no preference shares) outstanding throughout its life. None of the bonds have been converted as of the end of 2012. (Ignore all tax effects.)Accounting(a) Prepare the journal entry Garner would have made on January 1, 2011, to record the issuance of the bonds and prepare an amortization table for the first three years of the bonds.(b) Garner’s net income in 2012 was $30,000 and was $27,000 in 2011. Compute basic and diluted earnings per share for Garner for 2012 and 2011.(c) Assume that all of the holders of Garner’s convertible bonds convert their bonds to shares on January 2, 2013, when Garner’s shares are trading at $32 per share. Garner pays $50 per bond to induce bondholders to convert. Prepare the journal entry to record the conversion, using the book value method.AnalysisShow how Garner Company will report income and EPS for 2012 and 2011. Briefly discuss the importance of IFRS for EPS to analysts evaluating companies based on price-earnings ratios. Consider comparisons for a company over time, as well as comparisons between companies at a point in time.PrinciplesIn order to converge U.S. GAAP and IFRS, U.S. standard-setters (the FASB) are considering whether the equity element of a convertible bond should be reported as equity. Describe how the journal entry you made in part (a) above would differ under U.S. GAAP. In terms of the accounting principles discussed in Chapter 2, what does IFRS for convertible debt accomplish that U.S. GAAP potentially sacrifices? What does U.S. GAAP for convertible debt accomplish that IFRS potentially sacrifices?

A variation on cost-plus pricing is time-and-material pricing. Under this approach, two pricing rates are set. Explain where this approach is used and identify the steps involved in time-and-material pricing. Also explain what the material loading charge covers and how it is expressed.

On January 1, 2017, Buffalo Company purchased  12% bonds, having a maturity value of $ 304,000, for $ 327,047.70. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Buffalo Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.

(Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal X Proposal Y Proposal Z Initial investment $52,000 $52,000 $52,000 Cash flow from operations Year 1 50,000 26,000 52,000 Year 2 2,000 26,000 Year 3 27,000 27,000 Disinvestment 0 0 0 Life (years) 3 years 3 years 1 year (a) Select the best investment proposal using the payback period, the accounting rate of return on initial investment, and the net present value criteria. Assume that the organization's cost of capital is 10 percent. Round accounting rate of return four decimal places. Round net present value to the nearest whole number. Use negative signs with your answers, when appropriate. Proposal X Proposal Y Proposal Z Best proposal Payback period (years) Answer 2 Answer 2 Answer 1 Answer Accounting rate of return Answer 0.173 Answer 0.5065 Answer 0.1 Answer Net present value Answer 15,393 Answer 13,409 Answer (4,732) Answer (b) Factors explaining the differences in rankings include all of the following except: The net present value method considers the cost of capital while the payback method does not discount future cash flows. Net present value considers the timing of cash flows while payback considers only total cash flows. While the accounting rate of return explicitly considers the cost of the asset as part of annual depreciation the net present value method considers the cost of the asset as part of the initial investment. The accounting rate of return considers profitability while payback only considers the time required to recover the investment. Mark 1.00 out of 1.00

On January 1, 2017, Brussels enterprises issue bonds at par dated January 1, 2017, that have $3,300,000 par value, mature in 4 years and pay 10% interest semiannually on June 30 and December 31

1) Record the entry for the issuance of bonds for cash on January wa1, 2017

2) record the entry for the first semiannual interest payment on June 30, 2017

3) Record the entry for the second semiannual interest payment on December 31, 2017

4) record the entry for the maturity of the bonds on december 31, 2020.

The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 4,000 sets per year. Annual cost data at full capacity follow: Direct labor $ 90,000 Advertising $ 99,000 Factory supervision $ 74,000 Property taxes, factory building $ 20,000 Sales commissions $ 55,000 Insurance, factory $ 6,000 Depreciation, administrative office equipment $ 3,000 Lease cost, factory equipment $ 14,000 Indirect materials, factory $ 20,000 Depreciation, factory building $ 101,000 Administrative office supplies (billing) $ 4,000 Administrative office salaries $ 112,000 Direct materials used (wood, bolts, etc.) $ 426,000 Utilities, factory $ 43,000 Required: 1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as variable or fixed with respect to the number of units produced and sold; and second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect.) 2. Compute the average product cost of one patio set. 3. Assume that production drops to only 1,000 sets annually. Would you expect the average product cost per set to increase, decrease, or remain unchanged?