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Questions

On February 1, 2018, Wolf Inc. issued 10% bonds dated February 1, 2018, with a face...

On February 1, 2018, Wolf Inc. issued 10% bonds dated February 1, 2018, with a face amount of $200,000. The bonds sold for $239,588 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Wolf's fiscal year is the calendar year. Wolf uses the effective interest method of amortization.

Required:

1. Prepare the journal entry to record the bond issuance on February 1, 2018.

2. Prepare the entry to record interest on July 31, 2018.

3. Prepare the necessary journal entry on December 31, 2018.

4. Prepare the necessary journal entry on January 31, 2019.

In: Accounting

Purple Company acquired 80 percent of Silver Company's outstanding common stock for $592,000 on January 1,...

Purple Company acquired 80 percent of Silver Company's outstanding common stock for $592,000 on January 1, 20X7. On the date of acquisition, the book value and fair value of Silver Company's net assets were equal. Purple Company uses the equity method to account for investments. Trial balance data for Purple and Silver as of January 1, 20X7 are as follows:

	Purple Company	Silver Company
	Purple Company	Silver Company
Assets: Cash	218,000	50,000
Receivables	130,000	74,000
Inventory	250,000	174,000
Investment in Silver Company	592,000
Land	560,000	250,000
Depreciable Assets	1,750,000	500,000
Accumulated Depreciation	-1,000,000	-48,000
Total Assets	2,500,000	1 ,000,000
Liabilities & Stockholders' Equity

Accounts Payable	190,000	60,000
Bonds Payable	500,000	200,000
Common Stock	1,250,000	500,000
Retained Earnings	560,000	240,000
Total Liabilities & Equity	2,500,000	1,000,000

Immediately after acquisition, the consolidation worksheet was completed with all of the appropriate elimination entries (including pre-acquisition accumulated depreciation). The last column of the worksheet showing the consolidated totals has been left blank. Fill in the consolidated totals and identify the account marked with a "?" that will be included on the consolidated balance sheet.

In: Accounting

The City of Ashville operates an internal service fund to provide garage space and repairs for...

The City of Ashville operates an internal service fund to provide garage space and repairs for all city-owned-and-operated vehicles. The Central Garage Fund’s preclosing trial balance for the current fiscal year is as follows:

	Debits		Credits
Cash	$	121,100
Due from Other Funds		10,200
Inventory of Supplies		99,000
Land		54,500
Building		275,500
Allowance for Depreciation—Building			$	22,100
Machinery and Equipment		71,900
Allowance for Depreciation—Machinery and Equipment				13,200
Vouchers Payable				34,000
Net Position—Net Investment in Capital Assets				366,600
Net Position—Unrestricted				196,300
	$	632,200	$	632,200

The following information, not yet reflected in the preclosing figures above, applies to the current fiscal year:

Supplies were purchased on account for $101,300; the perpetual inventory method is used.
The cost of supplies used during the year was $121,100. A physical count taken as of that date showed materials and supplies on hand totaled $79,200 at cost.
Salaries and wages paid to employees totaled $258,400, including related costs.
Billings totaling $33,000 were received from the enterprise fund for utility charges. The Central Garage Fund paid $29,700 of the amount owed. (At the government-wide level, record the payable amount as Internal Balances.)
Depreciation of the building was recorded in the amount of $10,900; depreciation of the machinery and equipment amounted to $9,900.
Billings to other departments for services provided to them were as follows:


General Fund	$	297,000
Special Revenue Fund		139,600

7. Unpaid interfund receivable balances were as follows:

	Beginning of Year		End of Year
General Fund	$	2,800	$	3,300
Special Revenue Fund		7,400		10,200

8. Vouchers payable at year-end were $17,500.

9. Closing entries were prepared for the Central Garage Fund (ignore government-wide closing entry).

Prepare a statement of revenues, expenses, and changes in fund net position for the Central Garage Fund for the period.

In: Accounting

Think about someone you know has thought about having a business. It does not matter a...

Think about someone you know has thought about having a business. It does not matter a recent thing or a long time ago. The important thing is that you need to identify the following: 1. Do a SWAT analysis for the person's idea ( or your idea) 2. Define the Business Model and target market. 3. Do an analysis of the person (entrepreneur's) personality in relation to commitment, and all the qualities that may be key to take one's ideas to reality. 4. With this information do a recommendation for this idea from the view point of a "Small Business Consultant"stating first steps to follow and value proposition of your services to coach someone through grounding their ideas. Minimum 5 pages.

In: Accounting

Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet Following are the income statements and...

Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet
Following are the income statements and balance sheets of General Mills, Inc.

Income Statement, Fiscal Years Ended ($ millions)	May 29, 2011	May 30, 2010
Net Sales	$ 14,880.2	$ 14,635.6
Cost of sales	8,926.7	8,835.4
Selling, general and administrative expenses	3,192.0	3,162.7
Divestitures (gain), net	(17.4)	--
Restructuring, impairment, and other exit costs	4.4	31.4
Operating income	2,774.5	2,606.1
Interest, net	346.3	401.6
Earnings before income tax expense and equity in income of affiliates	2,428.2	2,204.5
Income tax expense	721.1	771.2
After-tax earnings from joint ventures	96.4	101.7
Net earnings including noncontrolling interests	1,803.5	1,535.0
Net earnings attributable to noncontrolling interests	5.2	4.5
Net earnings attributable to General Mills	$ 1,798.3	$ 1,530.5

Balance Sheet ($ millions)	May 29, 2011	May 30, 2010
Assets
Cash and cash equivalents	$ 619.6	$ 673.2
Receivables	1,162.3	1,041.6
Inventories	1,609.3	1,344.0
Deferred income taxes	27.3	42.7
Prepaid expenses and other current assets	483.5	378.5
Total current assets	3,902.0	3,480.0
Land, buildings and equipment	3,345.9	3,127.7
Goodwill	6,750.8	6,592.8
Other intangible assets	3,813.3	3,715.0
Other assets	862.5	763.4
Total assets	$ 18,674.5	$ 17,678.9
Liabilities and Equity
Accounts payable	$ 995.1	$ 849.5
Current portion of long-term debt	1,031.3	107.3
Notes payable	311.3	1,050.1
Other current liabilities	1,321.5	1,762.2
Total current liabilities	3,659.2	3,769.1
Long-term debt	5,542.5	5,268.5
Deferred income taxes	1,127.4	874.6
Other liabilities	1,733.2	2,118.7
Total liabilities	12,062.3	12,030.9
Stockholders' equity
Common stock, 754.6 shares issued, $0.10 par value	75.5	75.5
Additional paid-in capital	1,319.8	1,307.1
Retained earnings	9,191.3	8,122.4
Common stock in treasury, at cost, shares of 109.8 and 98.1	(3,210.3)	(2,615.2)
Accumulated other comprehensive loss	(1,010.8)	(1,486.9)
Total shareholders' equity	6,365.5	5,402.9
Noncontrolling interests	246.7	245.1
Total equity	6,612.2	5,648.0
Total Liabilities and Equity	$ 18,674.5	$ 17,678.9

Forecast General Mill's fiscal 2012 income statement using the following relations (assume "no change" for accounts not listed). Assume that depreciation and amortization expense is included as part of selling, general and administrative expense ($ millions).

Net sales growth	4.0%
Cost of sales/Net sales	60.0%
Selling, general and administrative expenses/Net sales	21.5%
Divestitures (gain), net	$--
Restructuring, impairment, and other exit costs	$--
Interest, net	$346.3
Income tax expense/Pretax income	29.7%
After-tax earnings from joint ventures	$96.4
Net earnings attributable to noncontrolling interests/Net earnings before attribution	0.5%

Round answers one decimal place.
Do not use negative signs with your answers.

Income Statement, Fiscal Years Ended ($ millions)	2012 Estimated
Net sales	$Answer Correct Mark 1.00 out of 1.00
Cost of goods sold	Answer Correct Mark 1.00 out of 1.00
Selling, general and administrative expenses	Answer Correct Mark 1.00 out of 1.00
Divestitures (gain), net	Answer Correct Mark 1.00 out of 1.00
Restructuring, impairment, and other exit costs	Answer Correct Mark 1.00 out of 1.00
Operating income	Answer Correct Mark 1.00 out of 1.00
Interest expense	Answer Correct Mark 1.00 out of 1.00
Earnings before income tax expense and equity in income of affiliates	Answer Correct Mark 1.00 out of 1.00
Income tax expense	Answer Correct Mark 1.00 out of 1.00
Equity in income of affiliates	Answer Correct Mark 1.00 out of 1.00
Net earnings including noncontrolling interests	Answer Correct Mark 1.00 out of 1.00
Net earnings attributable to noncontrolling interests	Answer Correct Mark 1.00 out of 1.00
Net earnings attributable to General Mills	$Answer Correct Mark 1.00 out of 1.00

Forecast General Mill's fiscal 2012 balance sheet using the following relations (assume "no change" for accounts not listed). Assume that all capital expenditures are purchases of land, building and equipment, net. ($ millions).


Receivables/Net sales	7.8%
Inventories/Net sales	10.8%
Deferred income tax/Net sales	0.2%
Prepaid expenses and other current assets/Net sales	3.2%
Other intangible assets	$0 amortization
Other Assets/Net sales	5.8%
Accounts payable/Net sales	6.7%
Other current liabilities/Net sales	8.9%
Current portion of long-term debt	$733.6
Deferred income taxes/Net sales	7.6%
Other liabilities/Net sales	11.6%
Noncontrolling interests	*
Capital expenditures/Net sales	4.4%
Depreciation/Prior year net PPE	20.7%
Dividends/Net income	40.6%
Current maturities of long-term debt in fiscal 2013	$733.6
*increase by net income attributable to noncontrolling interests and assume no dividends

Round answers one decimal place.
Do not use negative signs with your answers.

Balance Sheet ($ millions)	2012 Estimated
Assets
Cash and cash equivalents	$Answer Incorrect Mark 0.00 out of 1.00
Receivables	Answer Correct Mark 1.00 out of 1.00
Inventories	Answer Correct Mark 1.00 out of 1.00
Deferred income taxes	Answer Correct Mark 1.00 out of 1.00
Prepaid expenses and other	Answer Correct Mark 1.00 out of 1.00
Total current assets	Answer Incorrect Mark 0.00 out of 1.00
Land, buildings, and equipment	Answer Incorrect Mark 0.00 out of 1.00
Goodwill	Answer Incorrect Mark 0.00 out of 1.00
Other intangible assets	Answer Incorrect Mark 0.00 out of 1.00
Other assets	Answer Correct Mark 1.00 out of 1.00
Total assets	$Answer Incorrect Mark 0.00 out of 1.00
Liabilities and equity
Accounts payable	$Answer Correct Mark 1.00 out of 1.00
Current portion of long-term debt	Answer Correct Mark 1.00 out of 1.00
Notes payable	Answer Incorrect Mark 0.00 out of 1.00
Other current liabilities	Answer Correct Mark 1.00 out of 1.00
Total current liabilities	Answer Incorrect Mark 0.00 out of 1.00
Total long-term debt	Answer Incorrect Mark 0.00 out of 1.00
Deferred income taxes	Answer Correct Mark 1.00 out of 1.00
Other liabilities	Answer Correct Mark 1.00 out of 1.00
Total liabilities	Answer Incorrect Mark 0.00 out of 1.00
Stockholders equity
Common stock	Answer Incorrect Mark 0.00 out of 1.00
Additional paid-in capital	Answer Incorrect Mark 0.00 out of 1.00
Retained earnings	Answer Incorrect Mark 0.00 out of 1.00
Common stock in treasury	Answer Incorrect Mark 0.00 out of 1.00
Accumulated other comprehensive loss	Answer Incorrect Mark 0.00 out of 1.00
Total shareholders' equity	Answer Incorrect Mark 0.00 out of 1.00
Noncontrolling interests	Answer Incorrect Mark 0.00 out of 1.00
Total equity	Answer Incorrect Mark 0.00 out of 1.00
Total liabilities and Equity	$ Answer Incorrect Mark 0.00 out of 1.00

In: Accounting

Following are the financial statements of Target Corporation from its FY2015 annual report. Target Corporation Consolidated...

Following are the financial statements of Target Corporation from its FY2015 annual report.

Target Corporation
Consolidated Statements of Operations
	12 Months Ended
$millions	Jan. 30, 2016	Jan. 31, 2015	Feb. 01, 2014
Sales	76,785	72,618	71,279
Cost of sales	54,133	51,278	50,039
Gross margin	22,652	21,340	21,240
Selling, general and administrative expenses	15,280	14,676	14,465
Depreciation and amortization	2,213	2,129	1,996
Gain on sale	(620)	-	(319)
Earnings from continuing operations before interest expense & income taxes	5,779	4,535	5,170
Net interest expense	607	882	1,049
Earnings from continuing operations before income taxes	5,172	3,653	4,121
Provision for income taxes	1,681	1,204	1,427
Net earnings from continuing operations	3,491	2,449	2,694
Discontinued operations, net of tax	42	(4,085)	(723)
Net earnings (loss)	3,533	(1,636)	1,971

Target Corporation
Consolidated Statements of Financial Position
$millions	Jan. 30, 2016	Jan. 31, 2015
Assets
Cash and cash equivalents, inc. short-term investments of $3,008 and $1,520	$4,046	$2,210
Inventory	8,601	8,282
Assets of discontinued operations	322	1,058
Other current assets	1,161	2,074
Total current assets	14,130	13,624
Property and equipment, net	25,817	25,952
Noncurrent assets of discontinued operations	75	717
Other noncurrent assets	840	879
Total assets	$40,862	$41,172
Liabilities and Shareholders' investment
Accounts payable	$7,418	$7,759
Accrued expenses and other current liabilities	4,236	3,783
Current portion of LT debt and other borrowings	815	91
Liabilities of discontinued operations	153	103
Total current liabilities	12,622	11,736
Long-term debt and other borrowings	11,945	12,634
Deferred income taxes	823	1,160
Noncurrent liabilities of discontinued operations	18	193
Other noncurrent liabilities	1,897	1,452
Total noncurrent liabilities	14,683	15,439
Shareholders' investment
Common stock	50	53
Additional paid-in-capital	5,348	4,899
Retained earnings	8,788	9,644
Accumulated other comprehensive loss
Pension and other benefit liabilities	(588)	(561)
Currency translation adjustment and cash flow hedges	(41)	(38)
Total shareholders' investment	13,557	13,997
Total liabilities and shareholders' investment	$40,862	$41,172

We forecast Target's income statement using the following forecast assumptions for both years:

Sales (growth rate)	10%
Cost of sales/Sales	70.5%
Selling, general and administrative expenses/Sales	19.9%
Depreciation and amortization (% of prior year PPE, net)	8.4%
Net interest expense	No change
Provisions for income taxes/Pretax income	32.5%
Assume Target disposes of the net assets from discontinued operations (assets less liabilities) in FY2016 for proceeds of $350 million.

Instructions: Forecast Target's fiscal year ended 2016 and 2017 income statements.

Use the same forecasting assumptions for both years.
Round forecasts to $ millions.
Use rounded figures for subsequent forecast calculations.
Do not use negative signs with your answers in the income statement.

Hint: Forecasted FY2016 gain on sale is computed as proceeds from the disposal of net assets from discontinued operations minus net assets from discontinued operations ($350 million - $226 million). Forecast $0 for gain on sale in FY2017.

Target Corporation
Consolidated Statements of Operations
$ millions	FY2016 Est.	FY2017 Est.
Sales	$Answer Mark 0.00 out of 1.00	$Answer Mark 0.00 out of 1.00
Cost of sales	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Gross margin	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Selling, general and administrative expenses	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Depreciation and amortization	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Gain on sale	Answer Mark 0.00 out of 1.00	Answer Mark 1.00 out of 1.00
Earnings from continuing operations before interest and tax	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Net interest expense	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Earnings from continuing operations before tax	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Provisions for income taxes	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Net earnings	$Answer Mark 0.00 out of 1.00	$Answer Mark 0.00 out of 1.00

We forecast Target's financials using the following forecast assumptions for both year:

Inventory/Sales	11.7%
Other current assets/Sales	1.6%
Other noncurrent assets/Sales	1.1%
Accounts payable/Sales	10.1%
Accrued and other current liabilities/Sales	5.7%
Deferred income taxes/Sales	1.1%
Other noncurrent liabilities/Sales	2.6%
CAPEX/Sales	1.90%
Dividends/Net income	40.5%
Common stock	No change
Additional paid-in capital	No change
Accumulated other comprehensive loss	No change
Current Maturities L-T Debt for 2016	$751
Current Maturities L-T Debt for 2017	$2,251
Current Maturities L-T Debt for 2018	$201
Assume Target buys back common stock at $2,000 million in FY2016 and retires the stock. (Hint: Retained earnings are reduced by the cost of the stock buy back.) No stock buybacks happen in FY2017.

Instructions: Forecast Target's fiscal year ended 2016 and 2017 balance sheets.

Use the same forecasting assumptions for both years.
Round forecasts to $ millions.
Use rounded figures for subsequent forecast calculations.
Do not use negative signs with your answers in the income statement.

Target Corporation
Consolidated Statements of Financial Position
$ millions	FY2016 Est.	FY2017 Est.
Assets
Cash and cash equivalents, inc. short-term investments	$Answer Mark 0.00 out of 1.00	$Answer Mark 0.00 out of 1.00
Inventory	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Other current assets	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Total current assets	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Property and equipment, net	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Other noncurrent assets	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Total assets	$Answer Mark 0.00 out of 1.00	$Answer Mark 0.00 out of 1.00
Liabilities and Shareholders' investment
Accounts payable	$Answer Mark 0.00 out of 1.00	$Answer Mark 0.00 out of 1.00
Accrued expenses and other current liabilities	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Current portion of LT debt and other borrowings	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Total current liabilities	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Long-term debt and other borrowings	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Deferred income taxes	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Other noncurrent liabilities	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Total noncurrent liabilities	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Shareholders' investment
Common stock	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Additional paid-in capital	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Retained earnings	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Accumulated other comprehensive loss	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Total shareholders' investment	Answer Mark 0.00 out of 1.00	Answer Mark 0.00 out of 1.00
Total liabilities and shareholders' investment	$Answer Mark 0.00 out of 1.00	$Answer Mark 0.00 out of 1.00

In: Accounting

Question text Reformulating Allowance for Doubtful Accounts and Bad Debt Expense Merck & Company reported the...

Question text

Reformulating Allowance for Doubtful Accounts and Bad Debt Expense

Merck & Company reported the following from its 2016 financial statements.

$ millions		2013	2014	2015	2016
Accounts receivable, net		$7,189	$6,631	$6,489	$7,019
Allowance for doubtful accounts		149	156	168	199

a. Compute accounts receivable gross for each year.

$ millions		2013	2014	2015	2016
Accounts receivable, gross		$Answer Correct The correct answer is: 7338 Mark 1.00 out of 1.00	$Answer Correct The correct answer is: 6787 Mark 1.00 out of 1.00	$Answer Correct The correct answer is: 6657 Mark 1.00 out of 1.00	$Answer Correct The correct answer is: 7218 Mark 1.00 out of 1.00

b. Determine the percentage of allowance to gross account receivables for each year.

Round answers to two decimal places (ex: 0.02345 = 2.35%).

	2013	2014	2015	2016
% allowance	Answer Correct The correct answer is: 2.03 Mark 1.00 out of 1.00 %	Answer Correct The correct answer is: 2.3 Mark 1.00 out of 1.00 %	Answer Correct The correct answer is: 2.52 Mark 1.00 out of 1.00 %	Answer Correct The correct answer is: 2.76 Mark 1.00 out of 1.00 %

c. Assume that we want to reformulate the balance sheet and income statement to reflect a constant percentage of allowance to gross accounts receivables for each year. Compute the four-year average and then reformulate the balance sheet and income statements for each of the four years. Follow the process shown in Analyst Adjustments 5.2 and assume a tax rate of 35%.

Four- year average of percentage of allowance to gross accounts receivables.

Round answer to two decimal places (ex: 0.02345 = 2.35%)

Answer

Correct
The correct answer is: 2.4
Mark 1.00 out of 1.00

%

Reformulate the balance sheet and income statements.

Use rounded answer above for computations, then round answers to one decimal place.
Use negative signs with answers to indicate the adjustment decreases an account.

	2013	2014	2015	2016
Adjusted allowance for doubtful accts.	$Answer Correct The correct answer is: 176.1 Mark 1.00 out of 1.00	$Answer Correct The correct answer is: 162.9 Mark 1.00 out of 1.00	$Answer Correct The correct answer is: 159.8 Mark 1.00 out of 1.00	$Answer Correct The correct answer is: 173.2 Mark 1.00 out of 1.00

Balance Sheets Adjustments
Allowance for doubtful accounts	Answer Correct The correct answer is: 27.1 Mark 1.00 out of 1.00	Answer Incorrect The correct answer is: 34 Mark 0.00 out of 1.00	Answer Incorrect The correct answer is: 25.8 Mark 0.00 out of 1.00	Answer Correct The correct answer is: 0 Mark 1.00 out of 1.00
Accounts receivable, net	Answer Correct The correct answer is: -27.1 Mark 1.00 out of 1.00	Answer Incorrect The correct answer is: -34 Mark 0.00 out of 1.00	Answer Incorrect The correct answer is: -25.8 Mark 0.00 out of 1.00	Answer Correct The correct answer is: 0 Mark 1.00 out of 1.00
Deferred tax liabilities	Answer Correct The correct answer is: -9.5 Mark 1.00 out of 1.00	Answer Incorrect The correct answer is: -11.9 Mark 0.00 out of 1.00	Answer Incorrect The correct answer is: -9 Mark 0.00 out of 1.00	Answer Correct The correct answer is: 0 Mark 1.00 out of 1.00
Retained Earnings	Answer Correct The correct answer is: -17.6 Mark 1.00 out of 1.00	Answer Incorrect The correct answer is: -22.1 Mark 0.00 out of 1.00	Answer Incorrect The correct answer is: -16.8 Mark 0.00 out of 1.00	Answer Correct The correct answer is: 0 Mark 1.00 out of 1.00

Income Statements Adjustments
Bad debts expense	Answer Correct The correct answer is: 27.1 Mark 1.00 out of 1.00	Answer Incorrect The correct answer is: 6.9 Mark 0.00 out of 1.00	Answer Incorrect The correct answer is: -8.2 Mark 0.00 out of 1.00	Answer Incorrect The correct answer is: -25.8 Mark 0.00 out of 1.00
Income tax expense at 35%	Answer Correct The correct answer is: -9.5 Mark 1.00 out of 1.00	Answer Incorrect The correct answer is: -2.4 Mark 0.00 out of 1.00	Answer Incorrect The correct answer is: 2.9 Mark 0.00 out of 1.00	Answer Incorrect The correct answer is: 9 Mark 0.00 out of 1.00
Net Income	Answer Correct The correct answer is: -17.6 Mark 1.00 out of 1.00	Answer Incorrect The correct answer is: -4.5 Mark 0.00 out of 1.00	Answer Incorrect The correct answer is: 5.3 Mark 0.00 out of 1.00	Answer Incorrect The correct answer is: 16.8 Mark 0.00 out of 1.00

In: Accounting

Mountain Industries operates a Manufacturing Division and an Assembly Division. Both divisions are evaluated as profit...

Mountain Industries operates a Manufacturing Division and an Assembly Division. Both divisions are evaluated as profit centers. Assembly buys components from Manufacturing and assembles them for sale. Manufacturing sells many components to third parties in addition to Assembly. Selected data from the two operations follow:

	Manufacturing	Assembly
Capacity (units)	215000	115000
Sales price *	$ 108	$ 375
Variable costs^†	$ 48	$ 150
Fixed costs	$ 10150000	$ 6150000

* For Manufacturing, this is the price to third parties.

^† For Assembly, this does not include the transfer price paid to Manufacturing.

Required:

1. Current production levels in Manufacturing are 115000 units. Assembly requests an additional 21500 units to produce a special order. What transfer price would you recommend?

Enter your answer as whole dollars. Do not enter $ or commas.

2. Suppose Manufacturing is operating at full capacity when Assembly requests an additional 21500 units to produce a special order. What transfer price would you recommend?

3. Suppose Manufacturing is operating at 205000 units when Assembly requests an additional 21500 units to produce a special order. What transfer price would you recommend?

In: Accounting

Cornell Corporation manufactures faucets. Several weeks ago, the firm received a special-order inquiry from Yale, Inc....

Cornell Corporation manufactures faucets. Several weeks ago, the firm received a special-order inquiry from Yale, Inc. Yale desires to market a faucet similar to Cornell's model no. 55 and has offered to purchase 3,000 units. The following data are available:

• Cost data for Cornell's model no. 55 faucet: direct materials, $48; direct labor, $30 (2 hours at $15 per hour); and manufacturing overhead, $70 (2 hours at $35 per hour).

• The normal selling price of model no. 55 is $180; however, Yale has offered Cornell only $124 because of the large quantity it is willing to purchase.

• Yale requires a modification of the design that will allow a $7 reduction in direct-material cost.

• Cornell's production supervisor notes that the company will incur $6,433 in additional set-up costs and will have to purchase an $21,700 special device to manufacture these units. The device will be discarded once the special order is completed.

• Total manufacturing overhead costs are applied to production based on direct labor hours. Total budgeted overhead is $840,000. This figure is based on budgeted yearly fixed overhead of $624,000, a budgeted variable overhead of $216,000, and a budgeted activity level of 24,000 direct labor hours.

• Cornell will allocate $8,000 of existing fixed administrative costs to the order as “…part of the cost of doing business.

” Required: A. One of Cornell's staff accountants wants to reject the special order because “financially, it's a loser.” Do you agree with this conclusion if Cornell currently has excess capacity? Show calculations to determine the incremental profit or loss on this special order to support your answer.

B.If Cornell currently has no excess capacity, should the order be rejected? (Assume for part B that Cornell cannot acquire excess capacity via overtime or any other way.) Briefly explain.

In: Accounting

Review Apple Inc.'s financial statements in 2018 10K form and write two paragraphs about Apple's horizontal...

Review Apple Inc.'s financial statements in 2018 10K form and write two paragraphs about Apple's horizontal financial analysis.

In: Accounting

The PC Supply manufactures memory cards that sell to wholesalers for $2.00 each. Variable and fixed...

The PC Supply manufactures memory cards that sell to wholesalers for $2.00 each. Variable and fixed costs are as follows: Variable Costs per card Fixed Costs per Month Manufacturing Direct materials $0.30 Direct labor 0.25 Factory overhead 0.25 0.80 Factory overhead $4,000 Selling and admin. 0.15 Selling and admin. 3,000 Total $0.95 Total $7,000 PC Supply produced and sold 10,000 cards during October 2010. There were no beginning or ending inventories.

a. Prepare a contribution income statement for the month of October.

b. Determine PC Supply’s monthly break-even point in units.

c. Determine the effect on monthly profit of a 1,100 unit increase in monthly sales.

d. If PC Supply is subject to an income tax of 28 percent, determine the dollar sales volume is required to earn a monthly after-tax profit of $22,000.

In: Accounting

La Femme Accessories Inc. produces women's handbags. The cost of producing 1,180 handbags is as follows:...

La Femme Accessories Inc. produces women's handbags. The cost of producing 1,180 handbags is as follows:

Direct materials	$15,500
Direct labor	8,400
Factory overhead	6,400
Total manufacturing cost	$30,300

The selling and administrative expenses are $27,400. The management desires a profit equal to 18% of invested assets of $498,000.

If required, round your answers to nearest whole number.

a. Determine the amount of desired profit from the production and sale of 1,180 handbags.
$

b. Determine the product cost per unit for the production of 1,180 handbags.
$per unit

c. Determine the product cost markup percentage for handbags.
%

d. Determine the selling price of handbags. Round your answers to nearest whole value.

Cost	$per unit
Markup	$per unit
Selling price	$per unit

In: Accounting

On January 1, 20X8 , Bond Corporation acquired 80 percent of Gale Company's voting stock. On...

On January 1, 20X8 , Bond Corporation acquired 80 percent of Gale Company's voting stock. On the date of acquisition, the book value and fair value of Gale's net assets were equal. Bond uses the equity method of accounting for its ownership of Gale, and includes the amount of accumulated depreciation prior to acquisition in its elimination entries on the consolidation worksheet.

On December 31, 20X8, the trial balances of the two companies are as follows :

Item	Debit	Credit	Debit	Credit
Current Assets	538,000		127,000
Depreciable Assets	950,000		428,000
Investment in Gale Co.	298,400
Depreciation Expense	185,000		12,000
Other Expenses	550,000		62,000
Dividends Declared	300,000		40,000
Accumulated Depreciation		284,000		50,000
Current Liabilities		250,000		105,000
Long-Term Debt		220,000		27,000
Common Stock		328,600		133,000
Retained Earnings		750,000		119,000
Sales		860,000		235,000
Income from Gale Co.	128,800
	2,692,600	2,692,600	669,000	669,000

a)   What amount did Bond Corporation pay for its investment in Gale Company on January 1, 20X8?
b)   Prepare the elimination entries required to prepare the consolidated financial statements as of December 31, 20X8.
c)   Determine the amount reported on the consolidated financial statements as of December 31, 20X8 for retained earnings .
d)   Determine the amount reported on the consolidated financial statements as of December 31, 20X8 for depreciable assets.

In: Accounting

Cliffhangers Company had the following product information for March 2019: Selling Price $149 per unit Direct...

Cliffhangers Company had the following product information for March 2019:

Selling Price $149 per unit
Direct Materials $35 per unit
Direct Labor $29 per unit
Variable Manufacturing Overhead $13 per unit

Variable selling $6 per unit

Fixed Manufacturing Overhead . $129,000

Fixed Selling $164,000
Production 5,800 units
Sales (units) 4,400 units

REQUIRED:

What is the product cost per unit under absorption costing?
What is the product cost per unit under variable costing?
Prepare an income statement using absorption costing.
Prepare an income statement using variable costing.

In: Accounting

What are two methods of conducting business in the U.S. Compare the tax advantages and disadvantages....

What are two methods of conducting business in the U.S. Compare the tax advantages and disadvantages. Provide examples to support the advantages and disadvantages identified.

In: Accounting