a. Rory Inc. is a manufacturer of windows. Rory primarily sells to residential builders who take delivery of windows only when the house is at the stage at which the windows can be immediately installed. Consequently, builders will order the total number of windows in the various shape and size needed for an entire season. The builder will be invoiced as the order is completed and the windows put into a separate section of the warehouse and tagged with the customer name. But the windows will not be delivered until requested by the customer. The completed order is held in Rory's warehouse and shipped as the requests are received. Payment is made 60 days after the invoice date.

b.Heckiner Inc, manufacture customized equipment used in the paper packing industry, Customers can pick from a variety of "sections" to build a customized piece of machinery.It takes nine months to build these machines. However, even though the machines are"customized" they can be easily modified at any time during the production phase for another customer.since the section are standard and easily disassembled if required. The contract outlines which standard sections will be required and how they will be assembled for the final machine. the amount of consideration to be paid. and that the customer will take the title on delivering and inspection of the machinery. Payment is due after delivery and inspection.

c. Nevo Corp, develops customized software for clients related to inventory, management. Noro started with the customer specifications and then writes the software based on these requirements. it takes about 18 months to complete the project from concept and specifications through programming, debugging, and testing. Included in the contract are installation, on-site testing, training, and two year's upgrade and service9which certain milestone are achieved. A contract outlines the specification for the software, a project plan for installation, testing, training, upgrade and service agreements separately to the customer, but installation, testing, and training are not offered separately since these are customized to the specific customer's software.

For each situation, asset the five steps and determine when revenue is recognized and how costs and payment.

AugRealElectronics is a midsized electronics manufacturer. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded over 70 years ago. Over the years, the company has expanded, and it is now a reputable manufacturer of various specialty electronic items.  You, a recent business school graduate, have been hired by the company in its finance department.

One of the major revenue-producing items manufactured by AugReal is a smart phone. AugReal currently has one smart phone model on the market and sales have been excellent. The smart phone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smart phone has limited features in comparison with newer models. AugReal spent $750,000 to develop a prototype for a new smart phone that has all the features of the existing one but adds new features such as Pokémonluring and capturing. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new smart phone.

AugReal can manufacture the new smart phone for $205 each in variable costs. Fixed costs for the operation are estimated to run $5.1 million per year. The estimated sales volume is 64,000, 106,000, 87,000, 78,000, and 54,000 per year for the next five years, respectively, and no sales after the fifth year. The unit price of the new smart phone will be $485. The necessary equipment can be purchased for $34.5 million and will be depreciated on a seven-year MACRS schedule (see Table 6.3, p. 175).  It is believed the value of the equipment in five years will be $5.5 million.

Net working capital for the smart phones will be 20 percent of sales and will occur with the timing of the cash flows for the year (i.e., there is no initial outlay for NWC). Changes in NWC will thus first occur in Year 1 with the first year's sales. AugReal has a 35 percent corporate tax rate and a required return of 12 percent.

Shelly has asked you to prepare a report that answers the following questions:

QUESTIONS

1. What is the payback period of the project?
2. What is the profitability index of the project?
3. What is the IRR of the project?
4. What is the NPV of the project?
5. Should AugReal produce the new smart phone?

REPORT STYLE

            Remember that your boss is a smart business person, but she is not a financial analyst like you.  You should lead her through the logic of your analysis to your conclusions. Be sure your report is accurate and professional:  your job (grade) is on the line!

The report should be single-spaced within paragraphs and double spaced between paragraphs.  Use headings for major sections.  Include page numbers.  Use Times 12-point font.  Pay attention to grammar and writing style.  Write your report in third person, active voice.  Include Excel Worksheet Objects as tables in the body of your report that show the numbers involved in your analysis.  Include a memo to your boss as the cover/transmittal page.  The memo should present your primary conclusions in a bullet list.  

Your submission should be a single Word document (maximum of 6 pages) uploaded into Canvas.  I will use the attached rubric in the grading process.  “Paste object” to put your cash flows from Excel into your Word file. This allows me to simply click on your tables to see the match behind your calculations.  DO NOT USE EXCEL LIKE A TYPEWRITER.  That is, let Excel do the calculations.  Don’t do the calculations with pen and paper or a calculator and then simply type in the numbers into an Excel sheet.  I want to see that you can use Excel for this assignment and that you understand the concept of pasting an object rather than a picture from Excel to Word.  Failure to use Excel in the manner described will result in a significant grade penalty (50%?) even if your numbers are technically correct.

Sam’s Electronics Universe has discovered and investigated a kickback fraud perpetrated by its purchasing agent. The fraud lasted eight months and cost the company $2 million in excess inventory purchases. The perpetrator personally benefited by receiving kickbacks of $780,000. Your boss wants to seek restitution of what the company has lost, but is worried about the ramifications of a trial and its effect on your company’s image in the market. She is trying to decide if she should pursue remedies through a civil trial, or turn the case over to the district attorney to prosecute the perpetrator criminally.

The defendants have retained Daren as an expert witness in a recent fraud case. He will be providing information concerning the defendant’s activities, explaining why the defendant’s activities are in accordance with generally accepted accounting principles (GAAP) and normal business practice. Throughout the litigation process, Daren has been completely honest with the attorneys in his deposition and any other correspondence. Daren believes that the activities of the defendant have been in accordance with GAAP. The case continues and is brought to trial. A few days before Daren is called to testify in the trial, he discovers some new documents and information, which could possibly represent fraudulent behavior by the defendant.

Questions:

1. What ethical issues does Daren face in the light of this new information he has received?
2. What concerns should Daren have?
3. What are some possible actions Daren could take?

You can choose anything you want.

Please do fast you can.

Please provide an original post AND please reply to at least one classmate's post around one of the topics from this week, explaining a topic to the class, discussing a problem that you found particularly difficult, or expanding on something that you learned. To get full points you should have a thoughtful topic or response. You must complete both parts to get full credit. Please see below for an example of a strong discussion post and reply.

Learning Objectives: CHAPTER 1

1. Explain why accounting is the language of business
2. Explain and apply underlying accounting concepts, assumptions, and principles
3. Apply the accounting equation to business organizations
4. Evaluate business operations through the financial statements
5. Construct financial statements and analyze the relationships among them
6. Evaluate business decisions ethically

Learning Objectives: CHAPTER 2

1. Explain what a transaction is
2. Define “account” and list and differentiate between different types of accounts
3. Show the impact of business transactions on the accounting equation
4. Analyze the impact of business transactions on accounts
5. Record (journalize and post) transactions in the books
6. Construct and use a trial balance

EXAMPLE OF WHAT I'M LOOKING FOR:

One thing I found challenging was the credits and debits concept from chapter two and matching them up, (common stock would be a cash debit and stock credit). Once I got it down it was one of those "why didn't it make sense to me sooner" moments but at the time I didn't understand and would switch things. How I approached the chapter was really to make sure I understood all the terms, ie notes payable, accounts receivable, etc. Being able to understand them without going back to the textbook made the process a bit faster and overall easier. Another thing was really taking advantage of the internet and that if there was something in the textbook I didn't understand, looking it up on Google and going through different websites and tutorials. While going through the problems I made sure to take as thorough notes as I could with information that I knew would help me moving forward, targeting the problems that were difficult for me. Being able to go back and read through something that was written in a way that made the most sense to me as an individual definitely proved helpful. I also Skyped a friend who is currently enrolled in a financial accounting class and we would work through problems together.

On July 1, 2020, Davis Corp. issued 10-year, 800 Bonds, Par Value $1,000 each, Bonds carry 10% coupon rate, with interest payable semi-annually on January 1 and July 1. The bonds were issued for $ 908,722. On January 2, 2022, Davis offered to buy back the bonds at 103. Forty percent (40%) of the bondholders accepted the offer. Davis uses the effective-interest method of amortizing premium or discount.

Instructions

a)     Prepare the journal entry to record the bond issuance.

b)     Prepare the adjusting entry at December 31, 2020, the end of the fiscal year and the payment on Jan 1, 2021

c)     What is the interest amount Davis will report for the year ended Dec 31, 2021.

d) What is the total cost of borrowing over the life of the bond?

e) Show the proper presentation for the Bonds on the Statement of Financial Position (Balance sheet) for Davis co. as of Dec 31, 2021.  

f)      Prepare the entry to record the retirement of the bonds for the 40% who accept the offer on January 2, 2022.

Round all values to the nearest dollar. ( Hint: you need to calculate the EIR)

Addison Manufacturing holds a large portfolio of debt securities as an investment. The fair value of the portfolio is greater than its original cost, even though some debt securities have decreased in value. Sam Beresford, the financial vice president, and Angie Nielson, the controller, are near year-end in the process of classifying for the first time this securities portfolio in accordance with GAAP. Beresford wants to classify those securities that have increased in value during the period as trading securities in order to increase net income this year. He wants to classify all the securities that have decreased in value as held-to-maturity.

Nielson disagrees. She wants to classify those debt securities that have decreased in value as trading securities and those that have increased in value as held-to-maturity. She contends that the company is having a good earnings year and that recognizing the losses will help to smooth the income this year. As a result, the company will have built-in gains for future periods when the company may not be as profitable.

Instructions

Answer the following questions.

(a)  

Will classifying the portfolio as each proposes actually have the effect on earnings that each says it will?

(b)  

Is there anything unethical in what each of them proposes? Who are the stakeholders affected by their proposals?

(c)  

Assume that Beresford and Nielson properly classify the entire portfolio into trading, available-for-sale, and held-to-maturity categories. But then each proposes to sell just before year-end the securities with gains or with losses, as the case may be, to accomplish their effect on earnings. Is this unethical?

Golf Guide is seeking new customers through both direct mail and magazine ads. In a recent period, Golf Guide spent $25,277 on direct mail and spent $34,173 on golf magazine ads. The company gained 548 new customers through its direct mail and gained 805 new customers through its magazine ads. Calculate the overall cost per customer acquired for the combined program of direct mail and magazine ads. (Rounding: nearest penny.)

show step by step how you got the answer.

P23-8B (L03,6,8) (SCF—Direct and Indirect Methods) Comparative balance sheet accounts of Hamblin Company are impresented below. Additional data: 1. Equipment that cost $20,000 and was 40% depreciated was sold in 2017. 2. Cash dividends were declared and paid during the year. 3. Common stock was issued in exchange for land. 4. Investments that cost $25,000 were sold during the year. 5. There were no write-offs of uncollectible accounts during the year. Hamblin’s 2017 income statement is as follows. Instructions (a) Compute net cash provided by operating activities under the direct method. (b) Prepare a statement of cash flows using the indirect method. HAMBLIN COMPANY COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31 2017 2016 Debit Balances Cash $ 60,000 $ 71,500 Investments (available-for-sale) 30,000 55,000 Accounts receivable 152,000 136,000 Inventory 118,000 84,000 Land 50,000 15,000 Buidings 160,000 160,000 Equipment 60,000 41,500 Total assets $630,000 $563,000 Totals Credit Balances Allowance for doubtful accounts $ 6,000 $ 3,000 Accumulated depreciation-buildings 40,000 32,000 Accumulated depreciation -equipment 24,000 18,500 Accounts payable 102,000 95,000 Income taxes payable 13,000 8,000 Long-term notes payable 65,000 80,000 Common stock 295,000 236,500 Retained earnings 85,000 90,000 Totals $630,000 $563,000 Sales $750,000 Less: Cost of goods sold 480,000 Gross profi t 270,000 Less: Operating expenses (includes depreciation expense and bad debt expense) 145,000 Income from operations 125,000 Other revenues and expenses Gain on sale of investments $7,000 Loss on sale of equipment (4,000) 3,000 Income before taxes 128,000 Income taxes 52,000 Net income 76,000

answer question #3 The Glory Mountain State Ski Area The Glory Mountain State Ski Area – owned and managed by a state public authority - expects to attract 292,500 skier days during the coming ski season. A skier day represents one skier at the mountain for one day. In addition to a $2,000,000 per year subsidy provided by the state, Glory currently earns its revenue from three sources: lift ticket sales, ski lessons, and food sales in the mountain’s lodges. Forty-five percent of the customers come to the mountain on weekends and pay an average of $60 per day to ski. The remaining 55 percent of the skiers come during the week and pay an average of $45 per day for a lift ticket. On average, 10 percent of the people who visit Glory take ski lessons. An average person taking lessons pays $80 for each lesson. Management also estimates that each skier spends an average of $4 per day on food. Food costs average 40 percent of total food revenue. Glory’s central management staff is paid $1,800,000 per year. The remainder of Glory’s staff is seasonal and is paid on an hourly basis. The table below shows the number of employees by job title, the number of days they work on average, their hourly wages, and the number of hours they work each day. Only ski instructors and patrol costs vary with skier days. Benefits add 30 percent to direct salary costs for all workers including management. Equipment costs and usage are also shown in the table below. For equipment, number refers to the number of pieces of equipment. Equipment costs depend on the number of days the area is open during the season. The hourly fuel cost represents the cost of fuel to operate the equipment for each hour they are open. Number Days Worked Hours Worked Hourly Wage Instructors & Ski Patrol 275 100 7 $20.00 Lift Attendants, Maintenance & Grooming 140 130 10 $18.00 Kitchen Staff 50 130 8 $12.00 Equipment & Fuel Costs 60 130 6 $65.00 Insurance costs are $15,000 per day for each of the 130 days the area expects to be open. Energy costs are $2,240,000 per year and are based on the number of days the area is open. Neither energy nor insurance costs vary based on skier days. Question 1: You are the Glory Mountain State Ski Area’s finance manager. Area Manager Dan Finn has asked you to prepare a base operating budget for the ski area for the coming fiscal year and to show the impact a 5 percent reduction in the number of skier days would have on Glory’s operating results. In planning for the next season, the State Regional Development Authority, which manages the state’s five ski areas, is considering installing a 15-megawatt wind turbine at the top of Glory Mountain. If they do, the ski area will reduce its energy bill by almost 25 percent or $560,000 per year for the next 15 years. It will cost Glory $4,100,000 to complete the environmental assessments, do the necessary engineering studies, and install the turbine. In addition, the ski area will have to invest $750,000 at the end of the seventh year to overhaul the bearings and replace some time-critical components. For depreciation purposes, the wind turbine has a useful life of 10 years with no residual value. Glory uses straight-line depreciation. Question 2: The state uses an 8 percent cost of capital for its ski areas. Based on purely financial analysis, should the state install the turbine? In addition, the snowmaking equipment in the Bear Mountain section of Glory Mountain has been in service for nearly 15 years and has reached the end of its useful life. It will have to be replaced before the next ski season. Management has narrowed its decision down to two options: Big Mouth Snow Guns with a useful life of 15 years and the Whisper Quiet Snowmaking System with a useful life of 10 years. The Big Mouth system will cost Glory $850,000 to acquire and $35,000 per year to operate, while the Whisper Quiet system would only cost $600,000 and $50,000 per year to operate. If the Big Mouth equipment is chosen, there will be no change in Glory’s other operating costs. If the Whisper Quiet system is purchased, Glory’s annual fuel and equipment costs will increase by $15,000. Regardless of the option Glory chooses, the snowmaking system chosen will be depreciated over ten years with an assumed 5 percent residual value. Glory uses straight-line depreciation. Question 3: Based on Glory’s 8 percent cost of capital, which system should management choose? Glory Mountain has never offered any type of day care for younger children of skiing families. Given the changing demographics of its patrons, Dan Finn thinks that the Mountain needs to offer those services. Erika Fossett, Glory’s director of operations, has worked up a proposal for what she is calling the Glory Kids’ Center. She wants it to provide combined day care and ski lessons for children between the ages of 3 and 7. The center would be run by a director who will earn $60,000 per year plus benefits. For every 10 children using the Kids’ Center, the center will employ one full-time instructor. That instructor will provide both day care and skiing instruction. Each instructor will earn $25 per hour including benefits. The center will provide 8 hours of care per day. Instructors will only be paid for the hours the children are at the center. The children are fed lunch and a snack at a cost of $10 per child per day. Supplies for activities the children will be engaged in when they are not skiing will cost an average of $10 per child. Glory plans to charge $70 per day per child. Question 4: As Glory’s finance manager, you have been asked to evaluate the fiscal feasibility of running Glory Kids’ Center. Your first question is how many children will have to be at the center on an average day for it to be profitable on a stand-alone basis. Erika Fossett believes that the Kids’ Center will add 6 percent to overall skier days, and families with children between 3 and 7 will account for 10 percent of total skier days including the expected increase in volume. On average, families with children between 3 and 7 will enroll .25 children in the center each day they ski. She expects to employ an average of 6 instructors each day the ski area is open. Question 5: Prepare a special-purpose budget for the Glory Kids’ Center. Do not include the incremental lift ticket revenue from the expected increase in the volume of skier days in your estimate. After completing these analyses, Dan Finn asks you to update the budget to include the impact of installing the wind turbine, replacing the snowmaking equipment and operating the Glory Kids’ Center. In addition, Glory will have to issue a $6,000,000 bond to finance the acquisition of the equipment. The coupon rate on the bond will be 5 percent. It will require Glory to pay interest every six months and to repay the full $6 million of principal in 20 years. The bonds will be issued on the first day of Glory’s fiscal year, and all equipment will be put in service that same day. Question 6: Using the base budget from Question 1 as a starting point, prepare a revised budget for Glory that incorporates all of these initiatives. At the end of the season, bad weather caused the mountain to be open for only 115 days with an average of 2,600 people per day and an average price per lift ticket of $50.50. Question 7: Starting with the revised budget, calculate the following lift ticket revenue variances and indicate whether they were favorable or unfavorable. Be sure to add up the flexible (partial) variances and check to make sure that sum equals the total variance. a. Glory’s total lift ticket revenue variance for the ski season b. the portion of the lift ticket revenue variance that was due to volume of days c. the portion of the lift ticket revenue variance that was due to quantity of skiers per day d. the portion of the lift ticket revenue variance that was due to price

answer question #1

The Glory Mountain State Ski Area The Glory Mountain State Ski Area – owned and managed by a state public authority - expects to attract 292,500 skier days during the coming ski season. A skier day represents one skier at the mountain for one day. In addition to a $2,000,000 per year subsidy provided by the state, Glory currently earns its revenue from three sources: lift ticket sales, ski lessons, and food sales in the mountain’s lodges. Forty-five percent of the customers come to the mountain on weekends and pay an average of $60 per day to ski. The remaining 55 percent of the skiers come during the week and pay an average of $45 per day for a lift ticket. On average, 10 percent of the people who visit Glory take ski lessons. An average person taking lessons pays $80 for each lesson. Management also estimates that each skier spends an average of $4 per day on food. Food costs average 40 percent of total food revenue. Glory’s central management staff is paid $1,800,000 per year. The remainder of Glory’s staff is seasonal and is paid on an hourly basis. The table below shows the number of employees by job title, the number of days they work on average, their hourly wages, and the number of hours they work each day. Only ski instructors and patrol costs vary with skier days. Benefits add 30 percent to direct salary costs for all workers including management. Equipment costs and usage are also shown in the table below. For equipment, number refers to the number of pieces of equipment. Equipment costs depend on the number of days the area is open during the season. The hourly fuel cost represents the cost of fuel to operate the equipment for each hour they are open. Number Days Worked Hours Worked Hourly Wage Instructors & Ski Patrol 275 100 7 $20.00 Lift Attendants, Maintenance & Grooming 140 130 10 $18.00 Kitchen Staff 50 130 8 $12.00 Equipment & Fuel Costs 60 130 6 $65.00 Insurance costs are $15,000 per day for each of the 130 days the area expects to be open. Energy costs are $2,240,000 per year and are based on the number of days the area is open. Neither energy nor insurance costs vary based on skier days. Question 1: You are the Glory Mountain State Ski Area’s finance manager. Area Manager Dan Finn has asked you to prepare a base operating budget for the ski area for the coming fiscal year and to show the impact a 5 percent reduction in the number of skier days would have on Glory’s operating results. In planning for the next season, the State Regional Development Authority, which manages the state’s five ski areas, is considering installing a 15-megawatt wind turbine at the top of Glory Mountain. If they do, the ski area will reduce its energy bill by almost 25 percent or $560,000 per year for the next 15 years. It will cost Glory $4,100,000 to complete the environmental assessments, do the necessary engineering studies, and install the turbine. In addition, the ski area will have to invest $750,000 at the end of the seventh year to overhaul the bearings and replace some time-critical components. For depreciation purposes, the wind turbine has a useful life of 10 years with no residual value. Glory uses straight-line depreciation. Question 2: The state uses an 8 percent cost of capital for its ski areas. Based on purely financial analysis, should the state install the turbine? In addition, the snowmaking equipment in the Bear Mountain section of Glory Mountain has been in service for nearly 15 years and has reached the end of its useful life. It will have to be replaced before the next ski season. Management has narrowed its decision down to two options: Big Mouth Snow Guns with a useful life of 15 years and the Whisper Quiet Snowmaking System with a useful life of 10 years. The Big Mouth system will cost Glory $850,000 to acquire and $35,000 per year to operate, while the Whisper Quiet system would only cost $600,000 and $50,000 per year to operate. If the Big Mouth equipment is chosen, there will be no change in Glory’s other operating costs. If the Whisper Quiet system is purchased, Glory’s annual fuel and equipment costs will increase by $15,000. Regardless of the option Glory chooses, the snowmaking system chosen will be depreciated over ten years with an assumed 5 percent residual value. Glory uses straight-line depreciation. Question 3: Based on Glory’s 8 percent cost of capital, which system should management choose? Glory Mountain has never offered any type of day care for younger children of skiing families. Given the changing demographics of its patrons, Dan Finn thinks that the Mountain needs to offer those services. Erika Fossett, Glory’s director of operations, has worked up a proposal for what she is calling the Glory Kids’ Center. She wants it to provide combined day care and ski lessons for children between the ages of 3 and 7. The center would be run by a director who will earn $60,000 per year plus benefits. For every 10 children using the Kids’ Center, the center will employ one full-time instructor. That instructor will provide both day care and skiing instruction. Each instructor will earn $25 per hour including benefits. The center will provide 8 hours of care per day. Instructors will only be paid for the hours the children are at the center. The children are fed lunch and a snack at a cost of $10 per child per day. Supplies for activities the children will be engaged in when they are not skiing will cost an average of $10 per child. Glory plans to charge $70 per day per child. Question 4: As Glory’s finance manager, you have been asked to evaluate the fiscal feasibility of running Glory Kids’ Center. Your first question is how many children will have to be at the center on an average day for it to be profitable on a stand-alone basis. Erika Fossett believes that the Kids’ Center will add 6 percent to overall skier days, and families with children between 3 and 7 will account for 10 percent of total skier days including the expected increase in volume. On average, families with children between 3 and 7 will enroll .25 children in the center each day they ski. She expects to employ an average of 6 instructors each day the ski area is open. Question 5: Prepare a special-purpose budget for the Glory Kids’ Center. Do not include the incremental lift ticket revenue from the expected increase in the volume of skier days in your estimate. After completing these analyses, Dan Finn asks you to update the budget to include the impact of installing the wind turbine, replacing the snowmaking equipment and operating the Glory Kids’ Center. In addition, Glory will have to issue a $6,000,000 bond to finance the acquisition of the equipment. The coupon rate on the bond will be 5 percent. It will require Glory to pay interest every six months and to repay the full $6 million of principal in 20 years. The bonds will be issued on the first day of Glory’s fiscal year, and all equipment will be put in service that same day. Question 6: Using the base budget from Question 1 as a starting point, prepare a revised budget for Glory that incorporates all of these initiatives. At the end of the season, bad weather caused the mountain to be open for only 115 days with an average of 2,600 people per day and an average price per lift ticket of $50.50. Question 7: Starting with the revised budget, calculate the following lift ticket revenue variances and indicate whether they were favorable or unfavorable. Be sure to add up the flexible (partial) variances and check to make sure that sum equals the total variance. a. Glory’s total lift ticket revenue variance for the ski season b. the portion of the lift ticket revenue variance that was due to volume of days c. the portion of the lift ticket revenue variance that was due to quantity of skiers per day d. the portion of the lift ticket revenue variance that was due to price

ABC Corporation purchased a land for P500,000 during 2017 and chooses the revaluation model in accounting for its land . The following information relates to that land , which is the only land asset owned by the company , December 31, 2017- Fair value P520,000. Dec 31, ,2018- Fair Value P470,000. December 31 , 2019- Fair Value P510,000.a) What is the amount of unrealized gain on revaluation-land for the year 2017?_______. b.) How much is the accumulated other comprehensive income for the year 2017 to be recognized in the balance sheet?_____accumulated other comprehensive income. c) What is the amount of unrealized gain on realization -land for the year 2018?_____D.)How much is the impairement loss for the year 2018?____impairement loss. e)How much is the accumulated other comprehensive income for the year 2018 to be recognized in the balance sheet?____.f)How much is the recovery of impairement loss and revaluation gain on land for the year 2019?____.g) What is the amount of unrealized gain on revaluation-land for the year 2019?h)If the land was sold on January 10,2020 for Php 515,000 How much is the gain on sale of land?_____.i)How much is the accumulated other comprehensive income to be recycledto the retained earrnings as a result of the gain on sale of land?_____

Last month, Laredo Company sold 580 units for $90 each. During the month, fixed costs were $3,330 and variable costs were $9 per unit.

Required:

1. Determine the unit contribution margin and contribution margin ratio.

2. Calculate the break-even point in units and sales dollars.

3. Compute Laredo’s margin of safety in units and as a percentage of sales.

Write a 1 page recommendation for the pricing strategy necessary to successfully market your health care product or service. Be sure to include an estimate of the costs associated with the product or service, and the profits that are expected with the recommended pricing. You will need to make some “educated estimates” to complete this assignment; please follow a format like this to demonstrate that your recommended pricing will result in profits: New Product Per Unit 20,000 units (1st year sales forecast) Suggested retail price $100.00 $2,000,000 Cost to retailer ** $50.00 $1,000,000 Retailer margin $50.00 $1,000,000 Cost of Goods Sold Components/raw materials $10.00 $200,000 Labor $10.00 $200,000 Overhead $5.00 $100,000 Marketing costs $7.00 $140,000 Manufacturer profit $18.00 $360,000 ** “Cost to retailer” is the same as Manufacturer’s sales revenue New Service Per Day 200 days per year (1st year sales forecast) Service Charges** $250.00 $500,000 Cost of Goods Sold Labor $100.00 $200,000 Materials $20.00 $40,000 Overhead $30.00 $60,000 Marketing costs $10.00 $20,000 Service provider profit $90.00 $180,000 ** Service Charge is the expected sales revenue from the new service As a starting point to estimating costs, visit Bplans and search for a sample plan in a similar line of business to the one you are proposing. Look for the “Pro Forma Profit and Loss” chart within the Financial Plan section of the business plan, and make note of the expected costs in relation to forecasted sales. You can also do an Internet search for “income statement – (insert your product or service here)” and review the samples that you find. Within this section draft, please demonstrate your grasp of the marketing terminology and concepts related to pricing strategy. For example, it would be appropriate to identify whether you have chosen a penetration, skimming, or followership price strategy, and why you believe that strategy is appropriate.

Novak Corporation’s charter authorized issuance of 110,000 shares of $10 par value common stock and 49,300 shares of $50 preferred stock. The following transactions involving the issuance of shares of stock were completed. Each transaction is independent of the others. 1. Issued a $10,700, 9% bond payable at par and gave as a bonus one share of preferred stock, which at that time was selling for $97 a share. 2. Issued 480 shares of common stock for equipment. The equipment had been appraised at $7,500; the seller’s book value was $5,700. The most recent market price of the common stock is $16 a share. 3. Issued 373 shares of common and 107 shares of preferred for a lump sum amounting to $9,800. The common had been selling at $14 and the preferred at $67. 4. Issued 180 shares of common and 51 shares of preferred for equipment. The common had a fair value of $16 per share; the equipment has a fair value of $6,900.