Identify the $ value impact from the errors below on ending inventory, revenue, net income and ending retained earnings in the current year. Identify if the errors are an overstatement or an understatement. Each scenario is an independent case, the year end is December 31.

$1,500 of goods held on consignment were included in the inventory count and recorded in the purchases account.

Merchandise received during the year costing $4,600 was missed in the inventory count and therefore not included in ending inventory.

Included in the physical count were inventory items billed to a customer f.o.b. shipping point on December 31, 2020. These tools had a cost of $37,000 and were billed at $57,000. The shipment was on our loading dock waiting to be picked up by the common carrier.

Goods in transit with a cost of $1,000 shipped FOB destination by the supplier were recorded as a purchase but were excluded from ending inventory.

You can use the following template for each scenario:

Current year
Beginning Inventory

+ Purchases

= Available goods

- Ending Inventory

Cost of Goods Sold



Sales

- Cost of Goods Sold

Net Income



R/E, beg

+ Net Income

R/E, end

What are the pros and cons of using a revenue share strategy while placing slot machines on a casino floor?

1. Does the US Government have a spending problem, a revenue problem or both? Why or Why not?
2. Let's look at spending...what is the breakdown of the federal budget (where does the money go)? What proportion is discretionary vs. non-discretionary? Where is the majority of the spending growth taken place?
3. Given the spending growth (where it is taken place), what does this indicate regarding the role of the federal government?
4. What do you make of the US Government's deficits and overall debt from an economic perspective? This might include any consequences (good or bad) that you see. (Back up your thoughts with data.)

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 6 percentage points, while selling expenses by 3 percentage points, and administrative expenses by 2 percentage points. Thus, net income as a percent of sales by 3 percentage points.

Suppose the government raises its revenue by a net tax of 20 percent on income, t = 0.2, the marginal propensity to consume out of disposable income is 0.75, the marginal propensity to import is 0.06, and the government has an outstanding public debt of 800. In addition, the autonomous expenditure in households, business and foreign sectors (C + I + X - IM) is 340 and government expenditure is 340.

Note: Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places.

a) What is the public debt ratio?

Public debt ratio = 0%

b) Now, suppose the government increases its expenditures by 100 to provide additional funding for national defense. What is the size of the outstanding public debt after the increase in government expenditure, assuming the economy has reached its new equilibrium national income in one year?

New public debt = 0

c) What is the debt ratio after the increase in government expenditure and equilibrium income?

New public debt ratio = 0%

CAN YOU PLEASE ANSWER THESE USING EXCEL

To the Internal Revenue Service, the reasonableness of total itemized deductions depends on the taxpayer’s adjusted gross income.   Large deductions, which include charity and medical deductions, are more reasonable for taxpayers with large adjusted gross incomes.   If a taxpayer claims larger than average itemized deductions for a given level of income, the chances of an IRS audit are increased.   Data (in thousands of dollars) on adjusted gross income and the average or reasonable amount of itemized deductions follow:

a.)        Develop a scatter diagram for these data with adjusted gross income as the independent variable.

            b.)        Use the least squares method to develop the estimated regression equation.

c.)        Estimate a reasonable level of total itemized deductions for a taxpayer with an adjusted gross income of $52,500.   If this taxpayer claimed itemized deductions of $20,400, would the IRS agent’s request for an audit appear justified?   Explain.

d.) Write the regression equation

e.) Interpret the regression constant and regression coefficient

f.) Forecast a value for the dependent variable, test the significant of the regression coefficient at an alpha level of .05, test the overall significant of the regression model, and interpret the coefficient of determination.

The following information for the year 2019 is provided by Tromben Ltd:

Question 1 – Identification of types of costs

From the information provided, calculate the following costs:

Question 2 – Calculation of OH rates

Assume Tromben Ltd increased the total indirect costs to $1,572,000.

Calculate the total overhead rates using:

1. DL hours as the cost driver
2. Machine hours as the cost driver

Question 3 – Calculation of cost and price charged for a job

The company has received an inquiry about a sophisticated product which is estimated to take 84 direct labour hours and 12 machine hours. This product requires two components at a cost of $80 each plus other materials costing $140.

Required:

1. What would be the cost of this job, AND
2. What would be the price (charge to the client) if the firm applies 75% mark-up on cost:

• Assuming the firm used DL hours as the cost driver
• Assuming the firm used machine hours as the cost drive

3. Why are the prices charged to the customer for the same product different? Explain in one sentence.

Required: For each of the following independent items, indicate when revenue should be recognized.For each of the following independent items, indicate when revenue should be recognized.

Questions:

e. Growing, harvesting, and marketing of Christmas trees; the production cycle is ten years.

f. Building houses in a subdivision, when the project will take two years to complete and each house must be individually sold by the contractor. The contractor owns each house until title is transferred to the new owner.
g. Building houses in a subdivision, when the project will take two years to complete and the contractor is building the houses under a contract from the local government. The local government owns the land and the homes as they are constructed.

h. Selling undeveloped lots for future retirement homes in a western province, with very low down payment and long-term payment contracts.

i. Sale of a two-year parking permit by a parking garage, with one-half the sale price received at the time of the sale, and the remainder to be received in equal monthly payments over the period of the permit.

j. A fixed-price contract with the government to design and build a prototype of a space arm; the costs to complete the project cannot be reliably estimated. The government owns the arm throughout the contract.

k. A silver-mining company produces one million ounces of silver but stores the silver in a vault and waits for silver prices to increase.

What is the flexible budget? Include in your post an explanation of how sales revenue, variable costs and fixed costs are calculated for the flexible budget. Also, explain the master budget variance, volume variance and flexible budget variance.

Suppose a ski resort bases revenue projections on the assumption that an average skier skis four times per year. To evaluate the validity of this assumption, a random sample of 63 skiers is drawn and each is asked to report the number of times he or she skied last year. The sample average is 4.38 times. Assuming the population standard deviation is 2 times, can we infer at a 10% significance level that the resort’s assumption is wrong?

a) Set the null and alternative hypotheses.
b) Calculate a test statistic, select a rejection region, draw a conclusion, and interpret this conclusion.
c) Calculate a 90% confidence interval for the population mean.
d) Repeat the test in part (b) using the p-value method.