Compute the Missing Inventory Values.
The following information was disclosed in the 2012 annual report of The Arcadia Company.

Fill in the missing values.

Revenue Recognition: Sparrow Film Productions (SPF) wished to expand its production facilities so it borrowed $10,000,000 from First National Bank early in 2018. As a condition of making this loan, the bank requires that the business maintain a current ratio of at least 2 to 1. Business has been pretty good in 2018, but the cost of the expansion has brought the current ratio down below the target. In fact, on December 15, Jack Sparrow, the owner of SPF estimates that the year-end current ratio will be only 1.90 to 1. (A little short of the bank's requirements.) Jerry quickly looks through the signed contracts and sees an unpcoming project that will be started and completed in February 2019 for $500,000. Jerry is thinking about recording the $500,000 as revenue in 2018 instead of in 2019. If he does this, the current ratio at the end of 2018 will be above the required current ratio of 2 to 1. Required: 1. Assume Jerry decides to include the $500,000 as 2018 revenue. Journalize the transaction on 12/31 assuming the cash will be collected in February of 2019. 2. Explain why it would be unethical for Jerry to record the February revenue in 2018. Identify the accounting principle(s) relevant to this situation and give the reasons for your conclusion. This part should be 3-4 sentences. 3. Cite all references used including url or page number (even if you use the textbook). 4. If you were advising Jerry, what else could Jerry do to improve his current ratio that would be acceptable under ethical standards? (2-3 sentences)

Discuss any aspect of "Process Costing.

As an audit manager at Gung & Ho, CPAs, you have been scheduled to serve as the discussion leader for an in-office training session on consideration of the internal control structure in a financial statement audit. Gung & Ho's audit practice consists of audits of privately owned companies and not-for-profit organizations.

Required Prepare an outline of comments you plan to make to indicate similarities and differences in how each of the following items is handled under a primarily substantive approach versus a reliance on controls approach.

a. Understand entity-level controls.

b. Understand the flow of transactions.

c. Identify what can go wrong (WCGW) for financial statement assertions.

d. Identify relevant controls to test.

e. Determine preliminary audit strategy.

f. Perform tests of controls.

g. Evaluate audit evidence, assess control risk, and reevaluate audit strategy (if necessary).

h. Report internal control weaknesses to those charged with governance.

Lamonda Corp. uses a job order cost system. On April 1, the accounts had balances as shown in the T-accounts below:

The following transactions occurred during April:

(a) Purchased materials on account at a cost of $136,000.
(b) Requisitioned materials at a cost of $122,000, of which $28,000 was for general factory use.
(c) Recorded factory labor of $155,000, of which $24,000 was indirect.
(d) Incurred other costs:

(e) Applied overhead at a rate equal to 135 percent of direct labor cost.
(f) Completed jobs costing $375,000.
(g) Sold jobs costing $402,000.
(h) Recorded sales revenue of $500,000.

Required:
1. & 2. Post the April transactions to the T-accounts and compute the balance in the accounts at the end of April.



3-a. Compute over- or underapplied manufacturing overhead.



3-b. If the balance in the Manufacturing Overhead account is closed directly to Cost of Goods Sold, will Cost of Goods Sold increase or decrease?

4. Prepare Lamonda’s cost of goods manufactured report for April.



5. Prepare Lamonda’s April income statement. Include any adjustment to Cost of Goods Sold needed to dispose of over- or underapplied manufacturing overhead.

Suppose, three years ago, you purchased a 15-year coupon bond paying 5% interest annually with a face value of $1000. It is now three years later and you just received an interest payment yesterday (the bond matures in exactly twelve years). You look in the paper and the yield on comparable debt is 6%. If you bought it at Par value, did you have a capital gain or loss? Also, if the yield decreased to 4.5%, would you have a capital gain or loss, or could you tell?

Group of answer choices

Capital Gain; Capital Gain                                                      

Capital Gain; Capital Loss

Capital Loss; Capital Loss

none of them

Capital Loss; Capital Gain

La Famiglia Pizzeria provided the following information for the month of October:
a. Sales are budgeted to be $157,000. About 85% of sales is cash; the remainder is on account.
b. La Famiglia expects that, on average, 70% of credit sales will be paid in the month of sale, and 28% will be paid in the following month.
c. Food and supplies purchases, all on account, are expected to be $116,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase.
d. Most of the work is done by the owners, who typically withdraw $6,000 a month from the business as their salary. (Note: The $6,000 is a payment in total to the two owners, not per person.) Various part-time workers cost $7,300 per month. They are paid for their work weekly, so on average 90% of their wages are paid in the month incurred and the remaining 10% in the next month.
e. Utilities average $5,950 per month. Rent on the building is $4,100 per month.
f. Insurance is paid quarterly; the next payment of $1,200 is due in October.
g. September sales were $181,500 and purchases of food and supplies in September equaled $130,000.
h. The cash balance on October 1 is $2,147.
Required:
1. Calculate the cash receipts expected in October.
2. Calculate the cash needed in October to pay for food purchases.
3. Prepare a cash budget for the month of October.

A small but growing manufacturer of business class network routers. They produce two main types of routers, Model A and the more expensive variant, Model B. The company has a capacity of producing 500 Model A routers per month and currently produces 300 routers of that type every month. The routers are sold to small computer stores.

The company’s expenses are given below.

What are the contribution margin and the contribution rate [round to a full number]?

What is the break-even point in units? At their current level of production, how many units above or below the break-even point is company working at? How much profit per month would be earned at the current level of production? At the current level of production what percent of capacity is utilized?

What is the BE volume as a percent of current production [use the rounded number of BE units]? What is the BE volume as a percent of capacity [use the rounded number of BE units]?

Company has decided to increase its production from the current 300 routers per month to 425 routers per month, while at the same time lowering its selling price to $85. How would this change the company’s profit? A chain store wants to purchase additional routers from company on a regular basis. To meet the new demand, company expanded their facility by renting additional space. This increased their total fixed cost by 30% and doubled their capacity to 1200 units. company wants to break-even at 25% of this new capacity. What is the lowest price they can charge per router and still break-even?

Expenses are unit price is provided below.

please provide details. Thank You.

Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 40%. The company’s fixed expenses are $264,000 per year. The company plans to sell 17,000 units this year. Required: 1. What are the variable expenses per unit? 2. Use the equation method: a. What is the break-even point in unit sales and in dollar sales? b. What amount of unit sales and dollar sales is required to earn an annual profit of $70,000? c. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the company’s new break-even point in unit sales and in dollar sales? . 3. Repeat (2) above using the formula method. a. What is the break-even point in unit sales and in dollar sales? b. What amount of unit sales and dollar sales is required to earn an annual profit of $70,000? c. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the company’s new break-even point in unit sales and in dollar sales?

Statement of Stockholders' Equity

The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year ended December 31, 20Y9, are as follows.

Prepare a statement of stockholders’ equity for the year ended December 31, 20Y9.

If an amount is zero or an entry is not required, leave the box blank. Also, if an amount reduces Stockholders' Equity, then add "minus" sign.

Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the following data (in millions) for two recent years:

a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places.

Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2018, the end of the current year, Rowland Company’s accounting clerk prepared the following unadjusted trial balance:

Rowland Company

UNADJUSTED TRIAL BALANCE

August 31, 2018

The data needed to determine year-end adjustments are as follows:

Resource Usage and Supply, Activity Rates, Service Organization

EcoBrite Labs performs tests on water samples supplied by outside companies to ensure that their waste water meets environmental standards. Customers deliver water samples to the lab and receive the lab reports via the Internet. The EcoBrite Labs facility is built and staffed to handle the processing of 100,000 tests per year. The lab facility cost $160,000 to build and is expected to last 10 years and will have no salvage value. Processing equipment cost $250,000 and has a life expectancy of five years and will have no salvage value. Both facility and equipment are depreciated on a straight-line basis. EcoBrite Labs has six salaried laboratory technicians, each of whom is paid $30,000. In addition to the salaries, facility, and equipment, EcoBrite Labs expects to spend $50,000 for chemicals and other supplies (assuming 100,000 tests are performed). Last year, 86,000 tests were performed.

Required:

1. Classify the resources associated with the water testing activity into one of the following types: (1) committed resources and (2) flexible resources.

Committed resources: Lab facility, equipment and technician salaries  
Flexible resources:      Chemicals and supplies

2. Calculate the total annual activity rate for the water testing activity. Break the activity rate into fixed and variable components. (Round your answers to the nearest cent.)

3. Compute the total activity availability, and break this into activity output and unused activity.

4. Calculate the total cost of resources supplied, and break this into the cost of activity used and the cost of unused activity.

Medico Limited intends investing in a project during March 2021. The project is expected to cost R2 500 000 with a five-year useful life, and no residual value. The annual volume of production for the project is estimated at 150 000 units, which can be sold for cash at R12 per unit. Depreciation is expected to be R500 000 per year. Annual cash operating costs are as follows: Variable costs R225 000 Fixed costs R750 000 The cost of capital is 15%. REQUIRED Use the information provided above to calculate the following:

2.1 Net Present Value

2.2 Accounting Rate of Return on average investment (answer expressed to two decimal places)

2.3 Internal Rate of Return, if the net cash flows are R720 000 per year for five years (answer expressed to two decimal places).

Horizontal Analysis of the Income Statement

Income statement data for Winthrop Company for two recent years ended December 31, are as follows:

a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place.

b. The net income for Winthrop Company increased between years. This increase was the combined result of an ___ in sales and  percentage ____ in cost of goods sold. The cost of goods sold increased at a ___ rate than the increase in sales, thus causing the percentage increase in gross profit to be   than the percentage increase in sales.

Discuss your ability to use specialized audit tools including sampling methods. Can you be an effective auditor without using these tools when auditing transaction cycles such as the Revenue Cycle? Explain.