On 12/31/18, Company ABC buys 100 share in Walmart for $93.15. The following is a list of share prices for Walmart throughout 2019:

Assuming that ABC classifies the investment as a trading security, what will be the value that it reports on its 12/31/19 balance sheet, the gain/loss that it reports on its Q4 2019 incomes statement, and the gain/loss that it reports on its incomes statement for the year ended 12/31/19?

Question 3 options:

Mikeco wants to prevent an un-friendly take over and on 3/15/18 purchase 1,500,000 shares of its' common stock on the NYSE for $25 per share. The take over failed and on 8/23/18 Mikeco sold 1,000,000 shares of the stock it purchased on 3/15/18 for 32 per shear. On 12/28/18 Mikeco sold and additional 200,000 shears of its' Treasury Stock for 22 per share.

a. Required: Make all the required entries to record the information given above.

On 8/1/18 Allico Inc.s' board of directors declared a .20 cash dividend on all of its common stock.  The ex-dividend date was 8/27/18 and the date of record was 8/31/18.  The date of payment was 9/15/18.  On 8/1/18, Allico Inc. had 16,000,000 shares of common stock authorized with 7,000,000 issued and 500,000 shares held as treasurary stock.

b. Required: Make all the required entries to record the information given above.

On 3/15/18 DomCo Inc. issued 500,000 shares of $8.00 par value preferred stock. The company received $20 per share for the stock. On 3/31/18 company issued 1,000,000 shares of no par value common stock for $35 per share.

c. Required: Make the required Journal entries for both 3/15/18 and 3/31/18 for the issuance of both preferred and common stock.

The Kimm Company had the following assets and liabilities on the dates indicated.
Kimm began business on January 1, 2013, with an investment of $600,000 (60,000 shares, par value = $10).

1. In 2013, Kimm paid $50,000 dividends and no additional investment was made. Other comprehensive income was $1,000
2. In 2014, Kimm paid $100,000 dividends, additional investment of $200,000 (20,000 shares, par value = $10) was made by shareholders on September 1, 2014. Other comprehensive income (loss) was $(2,000).
3. In 2015, Kimm had zero dividends and no additional investment was made. Other comprehensive income (loss) was $(500,000).

P1. Determine net income in 2013, 2014 and 2015. (Show work clearly)

P2. Determine basic earnings per share in 2013, 2014 and 2015. (Show work clearly)

P3. Determine comprehensive income in 2013, 2014 and 2015. (Show work clearly)

P4. Determine the balance of retained earnings at the end of 2015. (Show work clearly)

P5. Determine the balance of common stock at the end of 2015. (Show work clearly)

P6. Determine the balance of accumulated other comprehensive income at the end of 2015. (Show work clearly)

Hint : Use Equity = CS +RE+AOCI, along with A = L + E. No preferred stock (thus no preferred div, net income to common stockholders = net income)

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:

Required:
Using calculations based on a periodic inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using each of the following cost flow methods.

Determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method. (Round cost per unit to 2 decimal places.)

Determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the LIFO method. (Round cost per unit to 2 decimal places.)

Determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the Average cost method. (Round cost per unit to 2 decimal places.)

You are a financial manager for Zoom Corp., which manufactures bicycles. In the most recent fiscal year,

Zoom manufactured and sold 20,000 bicycles. Wheels, seats, and brake calipers are three components of

the bicycles currently manufactured by Zoom. Three different vendors have proposed to provide those

components to Zoom, and quoted prices (including shipping) for their delivery. Your task is to determine

which, if any, of these proposals should be accepted.

Prepare a make vs. buy incremental analysis for each possible course of action in an Excel worksheet. Your

grade will be based on the correctness of your answers, as well as the use of Excel. That is, where possible,

you should use formulas to get your answers, rather than keyed-in values. See your instructor for help with

Excel basics if you need it.

In a Word document, prepare a memo stating which of the proposals you suggest accepting, as well as the

basis for your conclusions. Also identify any nonfinancial factors you should consider before accepting any

of the outsourcing proposals.

Below is cost data for Zoom's production of wheels, seats, and calipers. Outside suppliers have offered to

provide wheels for $7.26, seats for $7.76, and calipers for $2.56 per piece. Both wheels and seats are branded

with the Zoom logo, and that logo will need to be added at the Zoom factory at a cost of $0.50 each for any

of these components that are outsourced. For all three components, 75% of the fixed costs are avoidable, and

will be eliminated if the component's production is outsourced. In addition, seats and calipers are both

produced out of the same small factory space. If both seats and calipers were outsourced, Zoom could lease

the space out and increase net income by $6,000 per year, while eliminating all fixed costs for the two

components.

Wheels

Seats

Calipers

Cost category

Direct materials

$138,000

$54,500

$90,500

Direct labor

97,000

71,500

41,500

Variable overhead

21,000

14,000

16,000

Fixed overhead

58,600

36,600

31,400

Total cost

$314,600

$176,600

$179,400

Units produced

40,000

20,000

80,000

Cost per unit

$7.87

$8.83

$2.24

Hints: Prepare incremental analyses for each component separately. Make wheels vs. buy wheels, etc. Since

there are additional implications to outsourcing both seats and calipers, do a make vs. buy analysis assuming

both are outsourced. A correct solution, then, will likely have at least four incremental analyses.

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Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

Required:

1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.

  

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Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.

Required:

1. Calculate ending inventory and cost of goods sold at October 31, using the specific identification method. The October 4 sale consists of purses from beginning inventory, the October 13 sale consists of one purse from beginning inventory and two purses from the October 10 purchase, and the October 28 sale consists of three purses from the October 10 purchase and four purses from the October 20 purchase.

what is the ending inventory?

what is cost of good sold?

  

On January 2, 2018, Baltimore Company purchased 18,000 shares of the stock of Towson Company at $12 per share. Baltimore obtained significant influence as the purchase represents a 35% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $19,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $55,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased to $18 per share at the end of the year. Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018. (Round to the nearest dollar.)

The following data relate to the operations of love Company, a wholesale distributor of consumer goods:

1. The gross margin is 25% of sales.

2. Actual and budgeted sales data:

3. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales.

4. Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold.

5. One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory.

6. Monthly expenses are as follows: commissions, 12% of sales; rent, $4,000 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $783 per month (includes depreciation on new assets).

7. Equipment costing $3,200 will be purchased for cash in April.

8. Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Required:

Using the preceding data:

Prepare a balance sheet as of June 30.

Discuss 3 risks and 3 benefits of cloud-based computing especially as it relates to the expenditure cycle of an organization.

Question (a): Prior to liquidating their partnership, Perkins and Brooks had capital accounts of $46,000 and $74,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $144,000. The partnership had $5,000 of liabilities. Perkins and Brooks share income and losses equally. Determine the amount received by Brooks as a final distribution from liquidation of the partnership.

Question (b): Steve Conyers and Chelsy Poodle formed a partnership, dividing income as follows: Annual salary allowance to Poodle of $170,500. Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Conyers and Poodle, 1:2. Conyers and Poodle had $77,600 and $75,000, respectively, in their January 1 capital balances. Net income for the year was $310,000. How much is distributed to Conyers and Poodle?

Question (c): On January 1, 2016, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, 2016, the cost of the available-for-sale securities was $84,200, and the fair value was $77,810.

Derek and Meagan Jacoby recently graduated from State University and Derek accepted a job in business consulting while Meagan accepted a job in computer programming. Meagan inherited $75,000 from her grandfather who recently passed away. The couple is debating whether they should buy or rent a home. They located a rental home that meets their needs. The monthly rent is $2,250. They also found a three-bedroom home that would cost $475,000 to purchase. The Jacobys could use Meagan’s inheritance for a down payment on the home. Thus, they would need to borrow $400,000 to acquire the home. They have the option of paying 2 discount points to receive a fixed interest rate of 4.50 percent on the loan or paying no points and receiving a fixed interest rate of 5.75 percent for a 30-year fixed loan.

Though anything could happen, the couple expects to live in the home for no more than five years before relocating to a different region of the country. Derek and Meagan don’t have any school-related debt, so they will save the $75,000 if they don’t purchase a home. Also, consider the following information:

• The couple’s marginal tax rate is 24 percent.
• Regardless of whether they buy or rent, the couple will itemize their deductions.
• If they buy, the Jacobys would purchase and move into the home on January 1, 2018.
• If they buy the home, the property taxes for the year are $3,600.
• Disregard loan-related fees not mentioned above.
• If the couple does not buy a home, they will put their money into their savings account where they earn 5 percent annual interest.
• Assume that all unstated costs are equal between the buy and rent option.

Required: Help the Jacobys with their decisions by answering the following questions: (Leave no answer blank. Enter zero if applicable.)

a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from the savings account in your analysis.)

b. What is the approximate break-even point in years for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money.) (Do not round intermediate calculations. Round your final answer to 1 decimal place.)

c. What is the after-tax cost (in interest and property taxes) of living in the home for 2018? Assume that the Jacobys' interest rate is 5.75 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year.

d. Assume that on March 1, 2018, the Jacobys sold their home for $525,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $400,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $300,000. Assume they make interest-only payments on the loan.

Required:

1. d1. What gain or loss do the Jacobys realize and recognize on the sale of their home?
2. d2. What amount of taxes must they pay on the gain, if any?

There are different methods you could use for accounting for inventories. In a period where the raw material or merchandise inventory prices are INCREASING, which method would be most appropriate in order to minimize your taxable income

Jack is the only shareholder of XYZ Corporation. At year-end, XYZ had $200 of current year earnings and profits and $600 of accumulated earnings and profits. If XYZ distributes cash of $200 to Jack, what is Jack’s tax liability on the dividend, if any? Assume Jack has a basis of $10 in XYZ shares. How does this result change if XYZ only has $50 of current earnings and profits and $100 of accumulated earnings and profits?

Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that the thought process can be examined. Make effective use of comments to convey your thought process as well. No hard coding of solutions. Submit a single MS Excel file for grading.