Craig owns a home with a replacement cost of $200,000 that is subject to a $100,000 mortgage held by First Federal as the mortgagee. Craig has the home insured for $160,000 under the HO-3 policy, and First Federal is named as mortgagee under the Mortgage Clause. Assume there is a covered fire loss to the dwelling in the amount of $50,000. To whom would the loss be paid?

Hyrkas Corporation's most recent balance sheet and income statement appear below:

Dividends on common stock during Year 2 totaled $39 thousand. The market price of common stock at the end of Year 2 was $14.40 per share.

Required:

Compute the following for Year 2:

a. Gross margin percentage. (Round your answer to 1 decimal place.)

b. Earnings per share. (Round your answer to 2 decimal places.)

c. Price-earnings ratio. (Do not round intermediate calculations. Round your answer to 1 decimal place.)

d. Dividend payout ratio. (Do not round intermediate calculations. Round your "Percentage" answer to 1 decimal place.)

e. Dividend yield ratio. (Round your "Percentage" answer to 2 decimal places.)

f. Return on total assets. (Do not round intermediate calculations. Round your "Percentage" answer to 2 decimal places.)

g. Return on equity. (Round your "Percentage" answer to 2 decimal places.)

h. Book value per share. (Round your answer to 2 decimal places.)

i. Working capital. (Input your answer in thousands of dollars.)

j. Current ratio. (Round your answer to 2 decimal places.)

k. Acid-test (quick) ratio. (Round your answer to 2 decimal places.)

l. Accounts receivable turnover. (Round your answer to 2 decimal places.)

m. Average collection period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)

n. Inventory turnover. (Round your answer to 2 decimal places.)

o. Average sale period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)

p. Times interest earned ratio. (Round your answer to 2 decimal places.)

q. Debt-to-equity ratio. (Round your answer to 2 decimal places.)

Burns Corporation's net income last year was $96,500. Changes in the company's balance sheet accounts for the year appear below:

The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,100.

Required:

a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.)

b. Prepare the investing activities section of the company's statement of cash flows for the year.

c. Prepare the financing activities section of the company's statement of cash flows for the year.

Assigned (800 words) to write by my own word about Activity-based accounting (ABC): its concept, how to implement it, its advantages and disadvantages.( no Plagiarism)

On 5/2/20, Anna Company purchased $100,000 of the 9%, 10-year bonds of Dexter Corporation for $106,247, which provides an 8% return on annual interest payments made every 5/ Anna does not intend to hold the bonds until maturity, but will hold them for longer than a year. The market value of the bonds at 12/31/20 is $106,100 and at 12/31/21 is $106,000. On 3/1/22, Anna sells the bonds for $105,950. What journal entries will Anna make in 2020 and 2021 to appropriately record these transactions and to report this investment on the year-end financial statements and on 3/1/22 to record the sale of the investment?

Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 102,000 kilometers during a year, the average operating cost is 11.3 cents per kilometer. If a truck is driven only 68,000 kilometers during a year, the average operating cost increases to 12.9 cents per kilometer.

Required:

1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks.

2. Express the variable and fixed costs in the form Y = a + bX.

3. If a truck were driven 85,000 kilometers during a year, what total operating cost would you expect to be incurred?

Southern Corporation began operations in January 2019 and purchased a machine for $120,000 at that time. Southern uses straight-line depreciation over a four-year period for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2019, 30% in 2020, and 20% in 2021. Pretax accounting income for 2020 – which is the SECOND year of using this machine – is $150,000, which includes interest revenue of $20,000 from municipal bonds. The enacted tax rate is 30% for all years. There are no other differences between accounting and taxable income.

Prepare the JE for 2020

Holly Sportsballs has three product lines in its retail stores: soccer balls, baseballs, and tennis balls. Results of the fourth quarter are presented below:

                                                           Soccer Balls      Baseballs       Tennis Balls          Total

Units sold                                         1,000               2,000               2,000               5,000

Revenue                                      $22,000           $40,000           $23,000           $85,000

Variable departmental costs          15,000             22,000             12,000             49,000

Direct fixed costs                             1,000               3,000               2,000               6,000

Allocated fixed costs                        8,000               8,000               8,000           28,000

Net income (loss)                         $ (2,000)          $ 7,000           $ 1,000           $ 6,000

The allocated fixed costs cannot be avoided. There will be no changes in the demand of individual products caused by changes in other product lines.

Instructions

What will happen to profits if Holly Sportsballs discontinues the Soccer Balls product line?

1. In a manufacturing firm, which are the most important accounts to analyze for liquidity problems?

a. Cash account on the balance sheet

b. Cash, Accruals, Prepaid, and Accounts Receivable

c. Notes Payable, Cash, and Accounts Payable

d. Accounts Receivable, Inventory, and Accounts Payable

2. Golf Inc. and Golfanatics Corp. are close competitors. Last year, both had the same level of cost of goods sold, but Golf Inc. turned its inventory over five times during the year, whereas Golfanatics turned its inventory over every 65 days. If the objective is to keep low inventory, which of the following is true?

- Golf Inc., did a better job because its inventory turnover was lower

- Golfanatics did a better job because its inventory turnover was higher

- Golf Inc., did a better job because its day sales in inventory was lower

- Golf Inc., did a better job because its level of inventory was lower was lower

For each item, select the appropriate fundamental principle. Some principles will be used more than once, but each item has only one principle as its answer.

The Organization of the Petroleum Exporting Countries (OPEC) is a group of oil producers that have entered into an agreement aimed at controlling the world supply of oil. They behave like a monopolist, seeking to maximize profits by restricting output and increasing price. Suppose that the inverse demand curve for oil over the next five years is P = 165 − 2.5Q, where Q is millions of barrels per day. OPEC’s marginal cost is $15/barrel, or C(Q) = 15Q.

a. What is OPEC’s profit-maximizing level of output? What is the price of oil?

b. Business consultants believe that maximizing short-run profit is counterproductive for OPEC in the long run. They suggest that high oil prices push consumers to conserve energy and find cheaper alternatives. High oil prices also lead to innovation and new competition that increases the overall supply of oil in the future. It is estimated that demand will stay the same if oil prices stabilize at around $65/barrel or below, and if oil price exceeds $65/barrel then demand in the long run (over a second five-year period) will decrease to P = 135 − 2.5Q. Suggest what OPEC should do if their goal is to maximize total profit over the next 10 years.

Zena Company’s financial records showed the following selected items for 2015:

Advertising receipts

$650,000

Land rental revenues

$520,000

Interest paid on borrowings

$100,000

Wage expense

$190,000

Zena follows the accrual basis of accounting. The following balances were taken from Zena’s balance sheets:

12-31-14

12-31-15

Advertising receivables

20,000

25,000

Prepaid advertising costs

50,000

44,000

Unearned land rental revenue

46,000

53,000

Unearned advertising

30,000

38,000

Wages payable

34,000

25,000

Interest payable

60,000

70,000

a.

What were advertising-related revenues for 2015?

b.

What was interest expense for 2015?

c.

How much cash was paid out for wages and salaries during 2015?

d.

How much cash was collected for land rentals during 2015?

Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building:

An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.5 and $1.5 million, respectively. Shortly after acquisition, Samtech spent $100,000 to construct a parking lot and $58,000 for landscaping.

Required:
1. Determine the initial valuation of each asset Samtech acquired in these transactions.
2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $430,000 and the salvaged materials were sold for $6,500. In addition, Samtech spent $97,000 clearing and grading the land in preparation for the construction of a new building.
  

College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor-hours. A group of company employees recommended that CSC switch to activity-based costing and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for Year 5 for each activity center.

In addition, management estimated 2,000 direct labor-hours for year 5.

Assume that the following cost driver volumes occurred in February, year 5.

Direct labor costs were $20 per hour.

Required:

a. Compute a predetermined overhead rate for year 5 for each cost driver recommended by the employees. Also compute a predetermined rate using direct labor-hours as the allocation base.
b. Compute the production costs for each product for February using direct labor-hours as the allocation base and the predetermined rate computed in requirement a.
c. Compute the production costs for each product for February using the cost drivers recommended by the employees and the predetermined rates computed in requirement a. (Note: Do not assume that total overhead applied to products in February will be the same for activity-based costing as it was for the labor-hour-based allocation.)