The following information is available for year 1 for Pepper Products: Sales revenue (210,000 units) $ 3,150,000 Manufacturing costs Materials $ 168,000 Variable cash costs 142,400 Fixed cash costs 337,600 Depreciation (fixed) 989,000 Marketing and administrative costs Marketing (variable, cash) 422,400 Marketing depreciation 149,600 Administrative (fixed, cash) 509,200 Administrative depreciation 64,800 Total costs $ 2,783,000 Operating profits $ 367,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to fall by 4 percent, but prices are expected to rise by 18 percent. Material costs per unit are expected to increase by 10 percent. Other unit variable manufacturing costs are expected to decrease by 9 percent per unit. Fixed cash costs are expected to increase by 5 percent. Variable marketing costs will change with unit volume. Administrative cash costs are expected to increase by 5 percent. Inventories are kept at zero. Pepper Products operates on a cash basis. Required: Estimate the cash from operations expected in year 2. (Do not round intermediate calculations.)

The following information is available for year 1 for Pepper Products: Sales revenue (300,000 units) $ 8,100,000 Manufacturing costs Materials $ 478,000 Variable cash costs 406,000 Fixed cash costs 935,000 Depreciation (fixed) 2,851,000 Marketing and administrative costs Marketing (variable, cash) 1,205,000 Marketing depreciation 428,000 Administrative (fixed, cash) 1,456,000 Administrative depreciation 213,000 Total costs $ 7,972,000 Operating profits $ 128,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to fall by 6 percent, but prices are expected to rise by 16 percent. Material costs per unit are expected to increase by 9 percent. Other unit variable manufacturing costs are expected to decrease by 7 percent per unit. Fixed cash costs are expected to increase by 5 percent. Variable marketing costs will change with unit volume. Administrative cash costs are expected to increase by 2 percent. Inventories are kept at zero. Pepper Products operates on a cash basis. Required: Prepare a budgeted income statement for year 2. (Do not round intermediate calculations.)

Mamas & Papas, Inc. issues 7%, 10-year bonds with a face amount of $80,000 for $74,564 on January 1, 2020. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31.

1. Record the bond issue in the journal.

2. Record in the journal the first interest payment on June 30, 2020.

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 2015 for $200,000. It is now early in 2019, 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 8,600 ships: Direct materials $33,970 Direct labor 31,390 Variable overhead 14,190 Fixed overhead 37,840 Total $117,390 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 $40,000. 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 $1.90 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 $4,800. Finley expects production to be 9,050 ships in each of the next six years. Assume a discount rate of 3%. REQUIRED 1. What is the difference in net present values if Nautical Creations buys the new equipment instead of keeping their current equipment?

1.

At the beginning of the current year, Trenton Company's total assets were $274,000 and its total liabilities were $188,000. During the year, the company reported total revenues of $119,000, total expenses of $89,000 and owner withdrawals of $18,000. There were no other changes in owner's capital during the year and total assets at the end of the year were $286,000. Trenton Company's debt ratio at the end of the current year is:

• 52.1%.

• 1.52%.

• 34.3%.

• 65.7%.

• 68.6%.

2.

Joe Jackson opened Jackson's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:

1. Jackson invested $38,000 cash in the business.
2. Jackson contributed $113,000 of equipment to the business.
3. The company paid $3,300 cash to rent office space for the month of March.
4. The company received $29,000 cash for repair services provided during March.
5. The company paid $7,500 for salaries for the month of March.
6. The company provided $4,300 of services to customers on account.
7. The company paid cash of $1,800 for utilities for the month of March.
8. The company received $4,400 cash in advance from a customer for repair services to be provided in April.
9. Jackson withdrew $6,300 for his personal use from the company.

Based on this information, net income for March would be:

• $6,600.

• $26,500.

• $7,100.

• $20,700.

• $26,400.

Georgia Orchards produced a good crop of peaches this year. After preparing the following income statement, the company is concerned about the net loss on its No. 3 peaches.

In preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. The company’s delivery cost records show that $31,200 of the $69,300 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,100 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery.

Problem 09-5AC Part 1

Required:
1. Prepare reports showing cost allocations on a sales value basis to the three grades of peaches. Separate the delivery costs into the amounts directly identifiable with each grade. Then allocate any shared delivery costs on the basis of the relative sales value of each grade. (Do not round intermediate calculations.)

• What occurrences do not result in deductible casualty losses according to the IRS in addition to those listed in the text?
• What occurrences do not result in deductible theft losses according to the IRS in addition to those listed in the text?
• At the same time it is explaining the occurrences that do not result in deductible casualty or theft losses, the IRS states that deductible losses can result from two specific occurrences that would seem to fall into the “nondeductible” category. Briefly describe these provisions.

What do publication do I need to cite

Miller Cereals is a small milling company that makes a single brand of cereal. Recently, a business school intern recommended that the company introduce a second cereal in order to “diversify the product portfolio.” Currently, the company shows an operating profit that is 20 percent of sales. With the single product, other costs were twice the cost of rent.

The intern estimated that the incremental profit of the new cereal would only be 7.5 percent of the incremental revenue, but it would still add to total profit. On his last day, the intern told Miller’s marketing manager that his analysis was on the company laptop in a spreadsheet with a file name, NewProduct.xlsx. The intern then left for a 12-month walkabout in the outback of Australia and cannot be reached.

When the marketing manager opened the file, it was corrupted and could not be opened. She then found an early (incomplete) copy on the company’s backup server. The incomplete spreadsheet is shown as follows. The marketing manager then called a cost management accountant in the controller’s office and asked for help in reconstructing the analysis.

Required:

As the management accountant, fill in the blank cells. (Do not round intermediate calculations. Round your final answers to the nearest whole number. Enter all amounts as positive values.)

Miller Cereals

Projected Income Statement

For One Year

Schedule of Cost of Goods Manufactured and Sold
At December 31,2016, the end of its fiscal year, Kelly Metal Products Corporation collected the following data for 2016

Prepare a schedule of cost of goods manufactured and sold for Kelly Metal Products Corporation for the year ended December 31,2016, assuming that there were no other manufacturing overhead items than those listed above.

Do not use negative signs with any of your answers.

Bank Organizer ​Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the​ customer's bank. The​company's operating budget for September 2017 included these​ data:

The budgeted amounts for September 2017 ​were:

The actual results for September 2017 were as​ follows:

The executive vice president of the company observed that the operating income for September was much lower than​ anticipated, despite a​ higher-than-budgeted selling price and a​ lower-than-budgeted variable cost per unit. As the​ company's management​ accountant, you have been asked to provide explanations for the disappointing September results. Bank Organizer develops its flexible budget on the basis of budgeted​ per-output-unit revenue and​ per-output-unit variable costs without detailed analysis of budgeted inputs.

1. For this and the next 3 question. New York Waste (NYW) is considering refunding a $50,000,000, annual payment, 14.5% coupon, 30-year bond issue that was issued 5 years ago. It has been amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market. A call premium of 14% would be required to retire the old bonds, and flotation costs on the new issue would be $3 million. The company's marginal tax rate is 40%. The new bonds would be issued when the old bonds are called. Calculate the initial cost of the refunding?

   		$5,049,939
   		$5,315,725
   		$5,595,500
   		$5,890,000
   		$6,200,000
   		None of the above

2. Calculate the after-tax annual INTEREST SAVINGS if the refunding takes place.

   		$664,050
   		$699,000
   		$768,900
   		$849,000
   		$930,369
   		None of the above

3. The amortization of flotation costs reduces taxes and thus provides an annual cash flow. Calculate the net increase or decrease in the annual flotation cost tax savings if refunding takes place.

   		$8,000
   		$6,480
   		$7,200
   		$8,800
   		$9,680
   		None of the above

4. What is the NPV if the bonds are refunded today?

   		$1,746,987
   		$1,838,933
   		$1,935,719
   		$2,037,599
   		$3,785,322
   		None of the above

1. Single Plantwide Rate and Activity-Based Costing

   Whirlpool Corporation conducted an activity-based costing study of its Evansville, Indiana, plant in order to identify its most profitable products. Assume that we select three representative refrigerators (out of 333): one low-, one medium-, and one high-volume refrigerator. Additionally, we assume the following activity-base information for each of the three refrigerators:

   Three Representative Refrigerators	Number of Machine Hours		Number of Setups		Number of Sales Orders		Number of Units
   Refrigerator—Low Volume	120		21		63		600
   Refrigerator—Medium Volume	310		20		140		1,550
   Refrigerator—High Volume	960		14		210		4,800

   Prior to conducting the study, the factory overhead allocation was based on a single machine hour rate. The machine hour rate was $600 per hour. After conducting the activity-based costing study, assume that three activities were used to allocate the factory overhead. The new activity rate information is assumed to be as follows:

   	Machining Activity		Setup Activity		Sales Order Processing Activity
   Activity rate	$580		$900		$200

   a. Complete the following table, using the single machine hour rate to determine the per-unit factory overhead for each refrigerator (Column A) and the three activity-based rates to determine the activity-based factory overhead per unit (Column B). Finally, compute the percent change in per-unit allocation from the single to activity-based rate methods (Column C).

   If required, round all per unit answers to the nearest cent. Round percents to one decimal place. For column C, use the minus sign to indicate a negative or decrease.

   	Column A	Column B	Column C
   Product Volume Class	Single Rate Overhead Allocation Per Unit	ABC Overhead Allocation Per Unit	Percent Change in Allocation
   Low	$	$	%
   Medium	$	$	%
   High	$	$	%

   
   b. Why is the traditional overhead rate per machine hour greater under the single rate method than under the activity-based method?

   The machine hour rate is greater under the single rate method than under the activity-based method because 100% of the factory overhead is is allocated by machine hours under the single rate method. However, only a portion of the factory overhead is allocated under the machine rate method using activity-based costing. The remaining factory overhead is allocated using the . Thus, the numerator for for determining the machine hour rate under activity-based costing must be less than the numerator under the single machine hour rate method.

   c. Interpret Column C in your table from part (A).

   Column C indicates that under activity-based costing the low-volume product has a per-unit cost than calculated under the single rate method. In contrast, under activity-based costing the high-volume product has a per-unit cost than calculated under the single rate method. This result will occur when there are activities that occur in proportions different from their volumes. In this case, volume products have setups and sales orders occurring in higher proportions of total setups and sales orders than their proportion of machine hours to total machine hours. The opposite is the case for the volume product. Thus, the lower-volume products are produced and ordered in batch sizes compared to the higher-volume product. This implies that Whirlpool may wish to simplify its product line by eliminating some of the volume products or by attempting to reduce the overall cost of setup and sales order processing activities.

he president of the retailer Prime Products has just approached the company’s bank with a request for a $49,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used:

1. On April 1, the start of the loan period, the cash balance will be $38,500. Accounts receivable on April 1 will total $148,400, of which $127,200 will be collected during April and $16,960 will be collected during May. The remainder will be uncollectible.

2. Past experience shows that 30% of a month’s sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the three-month period follow:

3. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $186,000.

4. In preparing the cash budget, assume that the $49,000 loan will be made in April and repaid in June. Interest on the loan will total $840.

Required:

1. Calculate the expected cash collections for April, May, and June, and for the three months in total.

2. Prepare a cash budget, by month and in total, for the three-month period.

Connolly Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017 ​, it budgeted to manufacture and sell 3 comma 100 tires at a variable cost of $ 73 per tire and total fixed costs of $ 53 comma 500 . The budgeted selling price was $ 116 per tire. Actual results in August 2017 were 3 comma 000 tires manufactured and sold at a selling price of $ 119 per tire. The actual total variable costs were $ 240 comma 000 ​, and the actual total fixed costs were $ 50 comma 500 . Read the requirements LOADING... . Requirement 1. Prepare a performance report that uses a flexible budget and a static budget. Begin with the actual​ results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable.​ (For variances with a​ $0 balance, make sure to enter​ "0" in the appropriate field. If the variance is​ zero, do not select a​ label.) Actual Results Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Flexible-Budget Flexible Variances Budget Sales-Volume Static Variances Budget Requirement 2. Comment on the results in requirement 1. The total static-budget variance in operating income is $ There is a(n) total flexible-budget variance and a(n) sales-volume variance. The sales-volume variance arises solely because actual units manufactured and sold were than the budgeted 3,100 units. The flexible-budget variance in operating income is due primarily to the in unit variable costs. Choose from any list or enter any number in the input fields and then continue to the next question.