A CPA has been asked to audit the financial statements of a publicly held company for the first time. All preliminary verbal discussions and inquiries among the CPA, the company, the predecessor auditor, and all other necessary parties have been com- pleted. The CPA is now preparing an engagement letter.

1. Special Deductions and Limitations (LO 11.3)

   Fisafolia Corporation has gross income from operations of $426,600 and operating expenses of $362,610 for 2018. The corporation also has $42,660 in dividends from publicly traded domestic corporations in which the ownership percentage was 45%.

   Below is the Dividends Received Deduction table to use for this problem.
   

   Percent Ownership 2018 Dividends Received Percentage Less than 20 percent 50% 20 percent or more, but less   than 80 percent 65% 80 percent or more 100%

   If require, round final answers to the nearest dollar.

   a. Calculate the corporation's dividends received deduction for 2018.
   $

   b. Assume that instead of $426,600, Fisafolia Corporation has gross income from operations of $319,950.

   Calculate the corporation's dividends received deduction for 2018.
   $

   c. Assume that instead of $426,600, Fisafolia Corporation has gross income from operations of $350,000. Calculate the corporation’s dividends received deduction for 2018.
   $

Information need from Case 3 for the year end December 31, 2007 need for this question.

Total sales revenue: $639,111

Food operations sales revenue: $458,602 and Beverage operations sales revenue: $180,509

Average check for food and beverages: $9.59 Average check for food: $6.88 Average check for beverages: $2.71

In the case at the end of Chapter 3, you calculated the average food and beverage check for the 4C Company’s 84-seat restaurant in Year 2004. The restaurant was open for 52 weeks, 6 days a week for lunch, and 5 days a week for dinner. An analysis of sales checks indicated that the average turnover was 1.5 times for lunch and 1.25 times for dinner. Lunch contributes about 45 percent of total sales revenue and dinner, 55 percent. Total beverage sales revenue is 20 percent at lunch and 80 percent at dinner. a. Calculate the average lunch and average dinner checks for food and beverages.

This is how I think you solve the question. Is this correct?

Ave Lunch Check = (45% * $639,111) / (84 seats * 1.5 * 312days) = $7.3158 then of this $7.3158, 20% is from beverage sales and 80% is from food sales therefore:

Average lunch beverage check = $7.3158 * .2 = $1.46

Average lunch food check = $7.3158 * .8 = $5.85

Ave Dinner check = (55% * $639,111) / (84 seats * 1.25 * 260days) = $12.87586 then of this $12.87586, 80% is from beverage sales and 20% is from food sales therefore:

Average dinner beverage check = $12.87586 * .8 = $10.30

Average lunch food check = $12.87586 * .2 = $2.57

Question 1. How many statements are true? (A) 0 (B) 1 (C) 2 (D) 3 (E) 4

Statement 1. Scheduled receipts are future receipts of past order releases

Statement 2. The MPS contains the GR of the end -item.

Statement 3. The POR is the inventory policy of the MRP

Statement 4. MRP minimizes cost.

Part 2. Questions 2,3,4.

Consider the end-item weekly MRPs for May 1 with Qd missing in each MRP. Match the correct MRP with the proper lot size discipline.

[10 marks] In the UK’s market for cars, demand D is given by D = 120 − 3p where p is the price of cars. The supply of cars is given by S = 3p. Define a competitive equilibrium for this market and find the equilibrium price of cars and the quantity traded. Draw a graph of these supply and demand functions (putting p on the “y-axis”) and illustrate the equilibrium outcome on that graph. b) [8 marks] Suppose the demand for cars also depends on the [exogenous] price of petrol p P . Specifically suppose the demand for cars is now D = 120 − 3p − 6p P the supply of cars remains at S = 3p. Find the equilibrium price of cars and the quantity traded. Use a graph of the supply and demand for cars to explain how an increase in the price of petrol affects the market outcome. c) [7 marks] Given the [exogenous] price of petrol p P , show the car market generates sales revenues R = 3[p P ] 2 − 120p P + 1200. Sketch a graph of sales revenue R as a function of the price of petrol. [You may assume the price of petrol does not exceed 20]

This example was previously posted, but how did we come up with a Q1 result of 28.5 and a Q3 result of 123.3 for the question below? I am wondering where I went wrong here, as the results to this question have already been posted. The results I have are Q1 of 29 and Q3 of 121 with a median of 69. I have IQR as 92 and for outliers I have -109 for lower limit and 259 for upper limit. I am wondering how we came up with 28.5 for Q1 and 123.3 for Q3. Once I understand this, then figuring out IQR and outlier limits makes sense.

Hospital - Infections

You will be presented with five transactions, and for each transaction, you will be asked to identify the appropriate accounting element and the change for each element. These transactions will be presented separately.

1.

For each of the descriptions below about The Company, identify the appropriate accounting element(s) and what direction they are moving. Note: There will be two questions for every description.

The Company paid $500 (a) in cash for (b) telephone services used the previous month.

a) Accounting Element:(pick one) (Asset, Liability, Common stock, Revenue, Expense, Dividend)/ Direction of Movement:(pick one) ( Increasing, decreasing)

b)Accounting Element:(pick one) (Asset, Liability, Common stock, Revenue, Expense, Dividend)/ Direction of Movement:(pick one) ( Increasing, decreasing)

2.

For each of the descriptions below about The Company, identify the appropriate accounting element(s) and what direction they are moving. Note: There will be two questions for every description.

One of the owners (a) received more stock for contributing (b) equipment worth $25,000 to The Company.

a) Accounting Element:(pick one) (Asset, Liability, Common stock, Revenue, Expense, Dividend)/ Direction of Movement:(pick one) ( Increasing, decreasing)

b)Accounting Element:(pick one) (Asset, Liability, Common stock, Revenue, Expense, Dividend)/ Direction of Movement:(pick one) ( Increasing, decreasing)

3.

For each of the descriptions below about The Company, identify the appropriate accounting element(s) and what direction they are moving. Note: There will be two questions for every description.

The Company (a) provided services to customers for $50,000 (b) in cash.

a) Accounting Element:(pick one) (Asset, Liability, Common stock, Revenue, Expense, Dividend)/ Direction of Movement:(pick one) ( Increasing, decreasing)

b)Accounting Element:(pick one) (Asset, Liability, Common stock, Revenue, Expense, Dividend)/ Direction of Movement:(pick one) ( Increasing, decreasing)

4.

For each of the descriptions below about The Company, identify the appropriate accounting element(s) and what direction they are moving. Note: There will be two questions for every description.

The Company (a) owes an attorney $1,000 for (b) legal services previously received.

a) Accounting Element:(pick one) (Asset, Liability, Common stock, Revenue, Expense, Dividend)/ Direction of Movement:(pick one) ( Increasing, decreasing)

b)Accounting Element:(pick one) (Asset, Liability, Common stock, Revenue, Expense, Dividend)/ Direction of Movement:(pick one) ( Increasing, decreasing)

5.

For each of the descriptions below about The Company, identify the appropriate accounting element(s) and what direction they are moving. Note: There will be two questions for every description.

The Company (a) purchased inventory costing $200,000, they will (b) pay their supplier next month.

a) Accounting Element:(pick one) (Asset, Liability, Common stock, Revenue, Expense, Dividend)/ Direction of Movement:(pick one) ( Increasing, decreasing)

b)Accounting Element:(pick one) (Asset, Liability, Common stock, Revenue, Expense, Dividend)/ Direction of Movement:(pick one) ( Increasing, decreasing)

1)Lantz Company has provided the following information:

Cash sales totaled $200,000.

Credit sales totaled $480,000.

Cash collections from customers for services yet to be provided totaled $80,000.

A $16,000 loss from the sale of property and equipment occurred.

Interest income was $7,800.

Interest expense was $18,000.

Supplies expense was $300,000.

Rent expense for the store was $30,000.

Wages expense was $40,000.

Other operating expenses totaled $70,000.

Unearned revenue was 4,900.

What is the amount of Lantz’s income before income taxes?

2)

During 2016, Sensa Corporation incurred operating expenses amounting to $150,000 of which $90,000 was paid in cash; the balance will be paid during 2017. Which of the following is correct for the 2016 year-end balance sheet?

Stockholders' equity decreases $150,000, assets decrease $90,000, and liabilities increase $60,000.

Assets decrease $150,000, liabilities increase $60,000, and stockholders' equity decreases $150,000.

Stockholders' equity decreases $90,000 and assets decrease $90,000.

Assets decrease $150,000 and stockholders' equity decreases $150,000.

3)On December 31, 2016, Krug Company reported total liabilities of $190,000 prior to the following adjusting entries:

Depreciation expense: $41,000;

Accrued sales revenue: $39,000;

Accrued expenses: $28,000;

Used insurance: $7,000; the insurance was initially recorded as prepaid.

Rent revenue earned: $5,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.

How much are Krug's total liabilities after the adjusting entries?

$213,000.

$190,000.

$174,000.

$231,000.

4Lantz Company has provided the following information:

Cash sales totaled $370,000.

Credit sales totaled $497,000.

Cash collections from customers for services yet to be provided totaled $97,000.

A $22,000 loss from the sale of property and equipment occurred.

Interest income was $9,500.

Interest expense was $19,700.

Supplies expense was $440,000.

Rent expense for the store was $36,000.

Wages expense was $57,000.

Other operating expenses totaled $87,000.

Unearned revenue was $3,000.

What is the amount of Lantz’s income from operations (operating income)?

rev: 09_18_2017_QC_CS-100581

$184,800

$206,800

$225,000

$314,000

5)Top Company's 2016 sales revenue was $160,000 and 2015 sales revenue was $140,000. Top's total assets as of December 31, 2016 were $210,000 and total assets as of January 1, 2016 were $190,000. What is Top's total asset turnover ratio?

.79

.76

.85

.80

Background:

Australia’s “two strikes” rule empowers shareholders to vote on a board spill if the remuneration report of a public company receives 25% or more dissenting votes for two consecutive years. “Say on pay” legislation has been introduced in several countries but the Australian version is unique.

Required:

Now based on your findings in Question (3) of your submitted group assignment, use the chosen Australian publicly listed company to:

1. Evaluate the Australia’s “two strikes” rule. You are required to consider and analyse BOTH the potential benefits and unintended consequences (e.g., negative impact or limitations) of the “two strikes” rule.

On November 1, 2017, Splish Brothers Inc. had the following account balances. The company uses the perpetual inventory method.