Nautical Creations is one of the largest producers of miniature ships in a bottle. An especially complex part of one of the ships needs special production equipment that is not useful for other products. The company purchased this equipment early in 2016 for $200,000. It is now early in 2020, and the manager of the Model Ships Division, Jeri Finley, is thinking about purchasing new equipment to make this part. The current equipment will last for six more years with zero disposal value at that time. It can be sold immediately for $30,000. The following are last year's total manufacturing costs, when production was 8,800 ships: Direct materials $33,000 Direct labor 30,800 Variable overhead 14,080 Fixed overhead 41,360 Total $119,240 The cost of the new equipment is $145,000. It has a six year useful life with an estimated disposal value at that time of $45,000. The sales representative selling the new equipment stated, "The new equipment will allow direct labor and variable overhead combined to be reduced by a total of $2.15 per unit." Finley thinks this estimate is accurate, but also knows that a higher quality of direct material will be necessary with the new equipment, costing $0.23 more per unit. Fixed overhead costs will decrease by $4,200. Finley expects production to be 9,250 ships in each of the next six years. Assume a discount rate of 5%.

1. What is the difference in net present values if Nautical Creations buys the new equipment instead of keeping their current equipment?

Govt and Nonprofit Accounting

(27.)

Listed below are selected transactions form the City of Watertown Hospital. All amounts are in thousands of dollars.

Transactions:

1. The hospital provided patient services during the year that had standard charges of $12,500. Contractual adjustments awarded to patients under contracts with insurance companies and under government programs totaled $2,000. Uncollectible accounts are expected to be approximately $800.

2. Nursing and other professional salaries paid during the year totaled $2,300.

3. Depreciation for the year was $500 for the building and $900 for the equipment.

4. Medical supplies costing $2,600 were purchased durign the year. The inventory of supplies increased $200 at the beginning of the year to $300 at the year end.

5. The hospital received $4,000 to be used for the purchase of specialized diagnostic equipment.

6. THe hospital received a $500 gift to be used for providing specialized coronary care services to patients.

7. The hosptial purchased $2,000 of diagnostic equipment with the donation received for that purpose.

8. The hospital incurred $400 of operating expenses for the care of coronary patients constient with the purposes of that donation.

9. The hospital issued $5,000 of 20-year, 8% bonds at par at mid-year to finance a new additionf or the hospital.

10. The hospital estimates that malpractice claims against the hospital of $400 will ultimately result in liabilities of $100 that will have to be paid, but probably will not have to be paid uring the next fiscal year.

Requirement: Prepare the journal entires required of a government hospital for these transactions

I found this question to be really difficult, please help if possible, thank you!

1) Which of the statements below is​ FALSE?

A. Project A has a higher y−axis intercept for its NPV profile than mutually exclusive Project B. As long as the profile of Project A is above the profile of Project​ B, Project A will have a higher NPV value for that particular discount rate.

B. Project A has a higher y−axis intercept for its NPV profile than mutually exclusive Project B. As we proceed past the crossover rate to the right on the x−​axis, Project​ B's profile will be above Project​ A's profile.

C.Project A has a higher y−axis intercept for its NPV profile than mutually exclusive Project B. This means that Project A has a lower NPV than Project B when the discount rate is zero.

D. Project A and Project B are mutually exclusive. The two projects intersect in terms of NPV at a discount rate labeled the crossover rate

2) One method a company may use to handle a cash shortfall is to draw cash from savings.

A) True

B) False

3) Harris Electronics bills its clients on the first of the month. For​ example, any sale made in the month of July is billed August 1 and is due September 1. Clients traditionally pay as​ follows: 50% by the end of the first month​ August), 40% by the end of the second month​ (September), 8% by the end of the third month​ (October), and​ 2% default on their bills. What is the dollar value of January billings collected in​ April?

First Quarter Sales -Jan $88,000 Feb $74,000 March $96,000

Second Quarter Sales - April $99,000 May $82,000 June $63,000

A. $29,600

B.$0.00

C.$7,040

D.​$5,920

4) In terms of the​ float, the buyer of a product wants to​ ________ and the seller wants to​ ________.

A. increase the collection​ float; decrease the disbursement float

B. increase the disbursement​ float; decrease the collection float

C. decrease the collection​ float; decrease the disbursement float

D. decrease the disbursement​ float; decrease the collection float

5) Pacific Automotive has a​ $250,000 compensating balance loan with its bank. The terms of the loan call for Pacific to keep​ 10% of the loan as a compensating balance and pay interest at an annual rate of​ 6.50% on the entire amount. If the firm borrows the maximum amount for one​ year, what is the EAR on this​ loan?

A. ​6.50%

B. ​7.39%

C. ​7.22%

D. 6.87%

6) Bestor Bookkeeping has a​ $150,000 compensating balance loan with its bank. The terms of the loan call for Bestor to keep​ 8% of the loan as a compensating balance and pay interest at an annual rate of​ 7.50% on the entire amount. If the firm borrows the maximum amount for one​ year, what is the EAR on this​ loan?

A. ​8.15%

B. ​7.50%

C. ​8.67%

D. 8.35%

7) New York Investments​ (NYI), an investment banking​ firm, has proposed two types of payment plans for the IPO being considered by Albany Exploration. The first is a firm commitment of​ $40,000,000. The second is a best efforts arrangement in which NYI will receive​ $2.00 for every share sold up to a maximum of​ $3,600,000 for the​ 1,800,000 shares being offered. How much money will NYI earn under the firm commitment method if it is able to sell only​ 95% of the offering at a price of​ $25.00 per​ share?

a) $800,000

b) $1,080,000

c) $2,750,000

d) $2,200,000

7) Pacific Motors Inc. plans to issue​ $3,000,000 of commercial paper with a

6−month maturity at​ 98% of par value. What is the​ EAR?

A.​4.08%

B.​4.12%

C.​4.00%

D.2.00%

8) ​Often, in​ bankruptcy, the current managers continue to run the business while it operates under the reorganization​ plan, but the court may also appoint a trustee to oversee the operations and protect the rights of the claimants during this period of time.

True

False

On August 1, 2017, Indigo Corporation issued $504,000, 8%, 10-year bonds at face value. Interest is payable annually on August 1. Indigo’s year-end is December 31.

Prepare a tabular summary to record the following events.

Aug 1 2017 504000(cash) 504000(bonds)

Dec 31 2017 ??????? Need help with this part

Aug 1 2018 -40320 (cash) ???? interest pay and expense ?????? help

Dec 31 2017

Aug 1 2018

There are many components of a 10K filing. Pick three components that you find are the most important and explain why? Can you find them in the annual report as well? If not, why? Take a look at your fellow students responses and provide feedback to others.

You are preparing to discuss borrowing needs with your​ bank's loan officer who asks you to prepare​ pro-forma financial statements. Below are the financial statements for the year just ended. Your sales department is projecting a 21​% increase in sales. Days sales outstanding are expected to improve to 45 days. With respect to inventory and accounts​ payable, assume that purchases will be ​$9 comma 450 comma 100 and cash payments will be ​$8 comma 505 comma 090. The Company expects to invest ​$1 comma 542 comma 000 ​(net of​ depreciation) to expand its storage capacity and achieve scale savings. ​ Accordingly, gross profit margins are expected to be 29​% in the future. Other expenses are expected to remain the same percentage of sales. The retention ratio is 47​%. For ease of​ calculation, assume interest expense remains the same. Prepare​ pro-forma financial statements and determine the amount of borrowing​ needs, which will be reflected in​ long-term debt.​ (round your answers to the nearest​ integer, and fill in all amounts including​ totals; print out the problem to aid working​ it) Cash ​400,000 Sales ​10,000,000 Accounts Receivable ​1,400,000 Cost of Sales ​8,000,000 Inventory ​1,800,000   Gross Profit ​2,000,000   Total current Assets ​3,600,000 Operating Expense ​900,000 Fixed Assets ​1,400,000 EBIT ​1,100,000 Total Assets ​5,000,000 Interest Exp ​100,000 EBT ​1,000,000 Accounts Payable ​1,200,000 Tax​ (30%) ​300,000 ​Long-term Debt ​1,000,000 Net Income ​700,000   Total Debt ​2,200,000 Common Stock ​1,300,000 Retained earnings ​1,500,000   Total Debt and Equity ​5,000,000

Cash   

Sales   

Accounts Receivable   

Cost of Sales    

Inventory    

Gross Profit    

  Total Current Assets    

Operating Expenses   

Fixed Assets   

EBIT  

Total Assets    

Interest Exp   

Accounts Payable   

EBT  

​Long-term Debt    

Tax  

Common Stock    

Net Income   

Retained Earnings   

Total Debt and Equity

Jorgensen High Tech Inc. is a calendar-year, accrual-method taxpayer. At the end of year 1, Jorgensen accrued and deducted the following bonuses for certain employees for financial accounting purposes.

$60,400 for Ken.

$45,300 for Jayne.

$30,200 for Jill.

$15,100 for Justin.

How much of the accrued bonuses can Jorgensen deduct in year 1 under the following alternative scenarios?

b. Jorgensen paid the bonuses to the employees on April 1 of year 2.

c. Jorgensen paid the bonuses to employees on March 1 of year 2, and there is a requirement that the employee must remain employed with Jorgensen on the payment date to receive the bonus.
d. Jorgensen paid the bonuses to employees on March 1 of year 2, and there is a requirement that the employee must remain employed with Jorgensen on the payment date to receive the bonus; if not, the forfeited bonus is reallocated to the other employees.

The Tax Formula for Individuals, Filing Status and Tax Computation (LO 1.3, 1.5, 1.6, 1.7)

Diego, age 28, married Dolores, age 27, in 2017. Their salaries for the year amounted to $47,230 and they had interest income of $3,500. Diego and Dolores' deductions for adjusted gross income amounted to $2,000; their itemized deductions were $11,800; they claimed two exemptions on their return; and, they filed a joint return.

Table for the standard deduction

Click here to access the tax tables.

a. What is the amount of their adjusted gross income?
$

b. In order to minimize taxable income, Diego and Dolores will in the amount of $.

c. What is the amount of their taxable income?
$

d. What is their tax liability for 2017?
$

Find an article about activity-based costing systems. The summary should be approximately 250 words, and the reaction should be approximately 150 words. The summary should describe the major points of the article, and the reaction should demonstrate your interpretation of the article and how you can apply that knowledge. Please provide the link. Do not copy what's already in Chegg.com.

Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $40,000 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 8%. (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. Assume the note indicates that Seneca is to pay Arctic the $40,000 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021.

2. Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2021.

3. Assume instead that Seneca is to pay Arctic the $40,000 due on the note on December 31, 2022. Prepare the journal entry for Arctic to record the sale on January 1, 2021.

4. Assume instead that Arctic does not view the time value of money component of this arrangement to be significant, and that the note indicates that Seneca is to pay Arctic the $40,000 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021.

The financial statements for Castile Products, Inc., are given below:

Account balances at the beginning of the year were: accounts receivable, $230,000; and inventory, $280,000. All sales were on account. Assets at the beginning of the year totaled $1,060,000, and the stockholders’ equity totaled $675,000.

Required:

Compute the following: (For Requirements 1 to 4, enter your percentage answers rounded to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

1. Gross margin percentage.

2. Net profit margin percentage.

3. Return on total assets.

4. Return on equity.

5. Was financial leverage positive or negative for the year?

rev: 06_13_2017_QC_CS-91150

Please use Excel to analyze the statement of cash flows for the table below.

1) What is the correlation between net income and operating cash flow?

2) Explain the trends of cash flow from the table below.

3) What is the free cash flow from the table below?

1. Activity Rates and Activity-Based Product Costing

   Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant:

   	Deluxe	Regular
   Quantity	100,000	800,000
   Selling price	$900	$750
   Unit prime cost	$529	$483

   In addition, the following information was provided so that overhead costs could be assigned to each product:

   Activity Name	Activity Driver	Deluxe	Regular	Activity Cost
   Setups	Number of setups	300	200	$2,150,000
   Machining	Machine hours	100,000	300,000	40,000,000
   Engineering	Engineering hours	50,000	100,000	9,000,000
   Packing	Packing orders	100,000	400,000	250,000

   Required:

   1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent.

   Setups	$ per setup
   Machining	$ per machine hour
   Engineering	$ per engineering hour
   Packing	$ per packing order

   2. Calculate the per-unit product cost for each product. Round your answers to the nearest whole dollar.

   Deluxe	$per unit
   Regular	$per unit

You are employed as an accountant for Innovative Computing. Your company is in the process of signing a large contract with an electronics components supplier. You have a friend who works for the electronics components supplier, and you are aware of the company having trouble paying bills. Explain why you should, or should not report, this to your employer before the purchase.