As an accountant for Lee Company, your supervisor gave you the following calculations of the gross profit for the first quarter:

Alternative           Sales ($50 per unit)                  Cost of goods sold                      Gross Profit

    A                       $500,000                                 $200,000                                    $300,000

    B                       $500,000                                  228,000                                     272,000

    C                        500,000                                  213,333                                      286,667

The three alternative cost flow assumptions are FIFO, average, and LIFO (the alternatives are not necessarily presented in this sequence). Lee uses the periodic inventory system. The computation of the cost of goods sold under each alternative is based on the following:

                                                 Units                   Cost/Unit

Inventory, January 1                    12,000                      $20

Purchase, January 10                   4,000                      21

Purchase, February 15                  6,000                     22

Purchase, March 10                      8,000                     23

Required: Prepare schedules computing the ending inventory (in units and dollars) and proving the cost of goods sold shown here under each of the three alternatives.

On October 1, 2018, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. Rey adopts the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements on December 31, 2018. The company’s initial chart of accounts follows.

Required:

1. Prepare journal entries to record each of the above transactions for Business Solutions.
2. Post journal entries from requirement 1 to the general ledger accounts.
3. Prepare a trial balance as of the end of November.

Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions):

Balance sheet information is as follows:

The average liabilities, average stockholders’ equity, and average total assets are as follows:

X

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Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions):

Balance sheet information is as follows:

The average liabilities, average stockholders’ equity, and average total assets are as follows:

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Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions):

Balance sheet information is as follows:

The average liabilities, average stockholders’ equity, and average total assets are as follows:

X

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Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions):

Balance sheet information is as follows:

The average liabilities, average stockholders’ equity, and average total assets are as follows:

X

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The following T-accounts represent September activity.

Required:

Compute the missing amounts indicated by the letters (a) through (i).

On July 1, 2017, Novak Inc. made two sales. 1. It sold land having a fair value of $905,690 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,326,027. The land is carried on Novak's books at a cost of $594,100. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $408,280 (interest payable annually). Novak Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 10% interest. Record the two journal entries that should be recorded by Novak Inc. for the sales transactions above that took place on July 1, 2017.

An assessment as to whether (or not) the behaviour of the regulator in introducing the exposure draft can be explained by public interest theory.

An outline of the views presented in the comments letters which highlights the areas of agreement and disagreement with the exposure draft.

An application of each of the theories of regulation (public interest, private interest and capture) to the comments letters and a justification as to which theory(ies) best explains the comments.

answer the following

1) The tax valuation allowance is:

2)In the calculation of pension expense, how does the expected return on plan assets affect net income and other comprehensive income?

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $46,900; total assets, $239,400; common stock, $88,000; and retained earnings, $44,140.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $449,600 Cost of goods sold 296,850 Gross profit 152,750 Operating expenses 99,500 Interest expense 4,000 Income before taxes 49,250 Income taxes 19,840 Net income $29,410 CABOT CORPORATION Balance Sheet December 31, 2017 Assets Liabilities and Equity Cash $18,000 Accounts payable $17,500 Short-term investments 8,800 Accrued wages payable 4,800 Accounts receivable, net 33,800 Income taxes payable 3,300 Notes receivable (trade)* 5,000 Merchandise inventory 40,150 Long-term note payable, secured by mortgage on plant assets 70,400 Prepaid expenses 2,500 Common stock 88,000 Plant assets, net 149,300 Retained earnings 73,550 Total assets $257,550 Total liabilities and equity $257,550 * These are short-term notes receivable arising from customer (trade) sales. compute the following: (6)debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity

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 four more years with zero disposal value at that time. It can be sold immediately for $40,000. The following are last year's total manufacturing costs, when production was 8,600 ships:

The cost of the new equipment is $140,000. It has a four year useful life with an estimated disposal value at that time of $35,000. 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 $2.20 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 $0.17 more per unit. Fixed overhead costs will increase by $4,700.

Finley expects production to be 9,150 ships in each of the next four 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?

the following answers i have already tried and came out to be wrong:-

469551.98

433413.86

18343.7

18343

18344

Companies file for bankruptcy protection more often than not due to cash problems. We know from studying accrual accounting that profits and cash flow most often have different timing. Comment on how the income statement and the cash flow statement are connected. Do you feel both statements provide sufficient information for internal managers and external investors to make good decisions? Provide support for your response.

Your grade is calculated based on your personal response to the discussion topics AND responses to at least two classmates. Your discussion post and responses to classmates must be substantive. As a guideline, your discussion should be 3 - 4 paragraphs comprised of 5 -7 sentences per paragraph. Your responses to classmates should each be 2 -3 paragraphs with 5-7 sentences per paragraph.

Exercise 21-21 Overhead controllable and volume variances; overhead variance report LO P3 James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead budget: Operating Levels Overhead Budget 80% Production in units 8,000 Standard direct labor hours 30,000 Budgeted overhead Variable overhead costs Indirect materials $ 21,000 Indirect labor 30,000 Power 7,200 Maintenance 4,800 Total variable costs 63,000 Fixed overhead costs Rent of factory building 17,000 Depreciation—Machinery 11,400 Supervisory salaries 25,600 Total fixed costs 54,000 Total overhead costs $ 117,000 During May, the company operated at 90% capacity (9,000 units) and incurred the following actual overhead costs: Overhead Costs Indirect materials $ 21,000 Indirect labor 33,550 Power 8,100 Maintenance 6,210 Rent of factory building 17,000 Depreciation—Machinery 11,400 Supervisory salaries 28,500 Total actual overhead costs $ 125,760 1. Compute the overhead controllable variance. 2. Compute the overhead volume variance. 3. Prepare an overhead variance report at the actual activity level of 9,000 units.

On January 2, 2015, the S. H. Park Company (Park) installed a new $84,000 special molding machine for producing a new product. The product and the machine have an expected life of three years. The machines expected disposal value (amount machine can be sold for) at the end of three years is zero. S. H. Park Company paid cash when the equipment was delivered. Park paid for this machinery via bank transfer. On January 3, 2015, Kimiyo Lee, a salesperson for BT Machine and Tool (BT), tells Park: “I wish I had known earlier of your purchase plans. I can supply you with a technically superior machine for $99,000. Lee indicated the machine just purchased can be sold for $16,000. Lee guaranteed that there machine will save S. H. Park $35,000 per year in cash operating costs. This machine will have no disposal value at the end of three years.” Assume all costs are cost of sales. Park examines some technical data. Park is confident of Lee’s claims. However, Park contends, “I’m locked in now. My alternatives are clear: (a) disposal will result in a loss, (b) keeping and using the ‘old’ equipment avoids such a loss. I have brains enough to avoid a loss when my other alternative is recognizing a loss. We’ve got to use that equipment until we get our money out of it.” The annual operating costs of the old machine are $60,000 all paid in cash. This does not include depreciation. The new machine operating costs will be $25,000 which will be paid in cash. Sales, all in cash, are projected to be $850,000 per year. Annual cash expenses related to sales are $350,000 for material, $250,000 for labor and $150,000 for other operating expenses regardless of this decision. Assume that the equipment in question is the company’s only fixed asset. Ignore income taxes and the time value of money. Any cash payments for the machines occurred in 2015 coinciding with the purchase of the equipment. Should Park dispose of the “old-old” machine (stay the course) or should Park acquire new machine’s (New-New) from Lee? Using the template, prepare income statements as they would appear in each of the next three years under both alternatives. Assume straight-line depreciation over a three year period. What is the cumulative increase or decrease in net income for the three years for each alternative? Prepare statements of cash receipts and disbursements as they would appear in each of the next three years under both alternatives. Assume straight-line depreciation over a three year period. What is the total cumulative increase or decrease in cash for the three years for each alternative? If you were the sales person (Kimiyo Lee), how would respond to Mr. Park so as to get him to purchase your product? Using the provided information, if possible, prepare an alternative analysis which provides a similar result. Regardless of the financial analysis, what factors which effect or influence the decision to replace the equipment or stay with old (new) machine

On January 1, 2018, the general ledger of Freedom Fireworks includes the following account balances:

The following information is available on January 31, 2018.

1. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $26,000.
2. The company estimates future uncollectible accounts. The company determines $5,000 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable ending balance shown in the general ledger to start your calculations.) Record the estimated bad debt expense.
3. Unpaid salaries at the end of January are $28,100. (Recognize that salaries are owed, but have not been paid yet.)
4. Accrue income taxes at the end of January are $10,000. (Recognize that income taxes are due, but have not been paid yet.)

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $55,900; total assets, $249,400; common stock, $87,000; and retained earnings, $40,778.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 453,600 Cost of goods sold 297,750 Gross profit 155,850 Operating expenses 99,000 Interest expense 4,900 Income before taxes 51,950 Income taxes 20,928 Net income $ 31,022 CABOT CORPORATION Balance Sheet December 31, 2017 Assets Liabilities and Equity Cash $ 14,000 Accounts payable $ 17,500 Short-term investments 9,000 Accrued wages payable 3,600 Accounts receivable, net 34,000 Income taxes payable 4,400 Notes receivable (trade)* 5,500 Merchandise inventory 40,150 Long-term note payable, secured by mortgage on plant assets 70,400 Prepaid expenses 2,750 Common stock 87,000 Plant assets, net 149,300 Retained earnings 71,800 Total assets $ 254,700 Total liabilities and equity $ 254,700 * These are short-term notes receivable arising from customer (trade) sales. Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.)

Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics:

It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. If required round the answers to nearest whole number.

a. Compute the break-even number of seats sold on a single round-trip flight for the overall product, E. Assume that the overall product is 10% business class and 90% economy class seats.

b. How many business class and economy class seats would be sold at the break-even point?