Ribeiro Manufacturing Company has four operating divisions. During the first quarter of 2016, the company reported aggregate income from operations of $145,000 and the following divisional results:

See table for division sales, COGS, S&A expenses etc. at: https://www.solutioninn.com/ribeiro-manufacturing-company-has-four-operating-divisions-during-the-first

Discontinuance of any division would save 50% of the fixed costs and expenses for that division.
Top management is very concerned about the unprofitable divisions (III and IV). Consensus is that the company should discontinue one or both of these divisions.
Instructions
(a) Calculate the contribution margin for divisions III and IV.
(b) Prepare an incremental analysis for the possible discontinuance of (1) division III and (2) division IV. What course of action do you recommend for each division?
(c) Prepare a condensed income statement in columns for Ribeiro Manufacturing, assuming division IV is eliminated.
Use the CVP format. Division IV's unavoidable fixed costs are allocated equally to the continuing divisions.
(d) Reconcile the total income from operations of ($145,000) with the total income from operations without division IV.

During the first quarter of 2015, Toronto Dominion Bank (TD) stock cost $45 per share, was expected to yield 4% per year in dividends, and had a risk index of 3.0 per share, while CNA Financial Corp. (CNA) stock cost $40 per share, was expected to yield 2.5% per year in dividends, and had a risk index of 2.0 per share.† You have up to $25,000 to invest in these stocks, and would like to earn at least $760 in dividends over the course of a year. (Assume the dividends to be unchanged for the year.) How many shares (to the nearest tenth of a unit) of each stock should you purchase to meet your requirements and minimize the total risk index for your portfolio?

Toronto Dominion Bank__________ shares

CNA Financial Corp.___________ shares

What is the minimum total risk index? (Round your answer to two decimal places.)

Question 1

Fantastic Fashions has just completed its first quarter of operations. Below are transactions that have not yet been recorded. Prepare the journal entries listed below.

       Jan 1     Pre-tax cash sales amounted to $75,000. HST is collected on all sales at a rate of 13%.

       Jan 15 Signed a three month note for $12,000 to extend amounts owing on account to Trendy Taste Inc. Interest is 6% annually and due at maturity.

       Mar 1     Received the annual property tax bill for $7,500 payable on June 1.

       Apr 1      Paid salaries of $10,000; of this amount $495 is CPP, $178 is EI and $3,465 is for income taxes (record the employer portion as well).

       Apr 15    Paid the note due.

       Apr 29    A customer sued Fantastic Fashions for $200,000. Legal counsel has advised that it is unlikely damages will be awarded.

       Jun 1     Paid the property taxes bill in full.

Question 2

On January 1, Wonder Water borrowed $300,000 for 5 years at 4.5% to finance expansion. Fixed Principal Payments are to be made quarterly beginning Mar 1. Below is an instalment schedule for Wonder Water.

WONDER WATER

INSTALMENT PAYMENT SCHEDULE- FIXED PRINCIPAL PAYMENTS

Instructions

(a) Determine the missing values (round to the nearest dollar).

(b) Prepare the journal entries for the payments made on March 1 and Sept 1.

1. An arrangement has been made with the local bank that if ToyWorks maintains a minimum balance of $20,000 in their bank account, they will be given a line of credit at a preferred rate of 6% per annum. All borrowing is considered to happen on the first day of the month, repayments are on the last day of the month. All borrowings and repayments from the bank should be in multiples of $1,000 and interest must be paid at the end of each month. Interest is calculated on the balance at the beginning of the month, which includes any amounts borrowed that month.

Complete the financing option for the company

1. An arrangement has been made with the local bank that if ToyWorks maintains a minimum balance of $20,000 in their bank account, they will be given a line of credit at a preferred rate of 6% per annum. All borrowing is considered to happen on the first day of the month, repayments are on the last day of the month. All borrowings and repayments from the bank should be in multiples of $1,000 and interest must be paid at the end of each month. Interest is calculated on the balance at the beginning of the month, which includes any amounts borrowed that month.

Complete the financing option for the company

Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $193,000 and the following divisional results.

Analysis reveals the following percentages of variable costs in each division.

Discontinuance of any division would save 50% of the fixed costs and expenses for that division.

Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions should be discontinued.

(a)

Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

b

) Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

C)Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

D) Prepare a columnar condensed income statement for Brislin Company, assuming Division II is eliminated. Division II’s unavoidable fixed costs are allocated equally to the continuing divisions. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)