Use the data in the table below to set up short-run X-bar and R charts using the DNOM approach. The nominal dimensions for each part are TA = 50, TB = 75, TC = 60, TD = 100, and TE = 125.

A company has the capacity to generate a revenue of $3,000,000 a year. The break even revenue is $2,000,000 a year. From the breakeven point every $100 extra revenue generates $40 extra profit and every $100 decrease in revenue results in $40 extra loss. The costs consist of fixed cost , variable costs which are linear related to the revenue. 1-calculate the fix cost 2-calcualte the variable cost at revenue of $1,500,000 a year. The company decides to purchase another machine, which results in an increase of capacity to 4,000,000 a year. The fixed cost of this expansion is 200,000 a year, and the variable costs are 40$ for 100% revenue. The normal revenues is 4,000,000 a year, and the actual revenues is also $4,000,000. 3- calculate the breakeven point after the expansion. 4- calculate the full cost per dollar revenue after the expansion

Prepare a Statement of Cash Flows for Kitten Mittens on the following page for the year ended December 31, 2004. Use the indirect method to calculate cash flows from operations.

The  Balance  sheet and Income Statement for "KittenMittens" for the year ending December 31, 2004, are

as follows:                                                                                                                                    

Kitten Mittens Comparative Balance Sheets

Assets

December 31, 2003 December 31, 2004

Current Assets:

Liabilities and Equity

Current Liabilities :

Total Liabilities                                                                                                                                                                                                                                 and Stockholders' Equity $1,647,500 $2,076,000

QUESTION CONTINUES ON FOLLOWING PAGE

Kitten Mittens

Income Statement

For year ended December 31, 2004

- Kitten Mittens purchased $500,000 of new equipment during 2004. The new equipment replaced old equipment,whichwassoldfor$144,000 in cash. As indicated on the income statement, the sale of equipment resulted in a loss of $38,000.

- Dividends were declared and paid to common stockholders during the year.

- No new debt was issued and no land was sold during 2004.

Required:

Prepare a Statement of Cash Flows for Kitten Mittens on the following page for the year ended December 31, 2004. Use the indirect method to calculate cash flows from operations.

Princeton, Inc. maintained average inventory of $26,248 for the year 2004. Recently managers at Princeton discovered that inventory sits on the shelf for approximately 60 days before being sold. What it the cost of goods sold (COGS) for the Princeton, Inc. for 2004? (Assume 360 days a year).

4 . Individual Problems 22-1

Suppose that a paper mill “feeds” a downstream box mill. For the downstream mill, the marginal profitability of producing boxes declines with volume. For example, the first unit of boxes increases earnings by $30, the second by $27, the third by $24, and so on, until the tenth unit increases profit by just $3.

The cost the upstream mill incurs for producing enough paper (one “unit” of paper) to make one unit of boxes is $9.50.

Assume the two mills operate as separate profit centers, and the paper mill sets the price of paper. It follows that the marginal profitability of boxes represents the highest price that the box division would be willing to pay the paper division for boxes.. Furthermore, assume that fixed costs are $0 for the paper mill.

The following table summarizes the quantity, total revenue, and marginal costs from the perspective of the paper mill for selling paper to the box mill at various prices.

In the following table, fill in the marginal revenue, total cost, and total profit for the paper mill when selling paper to the box mill at each given price.

If the paper mill sets the price of paper to sell to the box mill, it will set a price of (_____ ) and sell (______) units of paper to the box mill. Profits will be(_____)

for the paper mill. Companywide  profits will be(______). (Hint: Recall that the prices in the table represent the marginal profitability of each unit of paper, or box, to the box mill.)

Suppose the paper mill is forced to transfer paper to the box mill at marginal cost ($9.50).

In this case, the box mill will demand(_____) units of paper. This leads to companywide profits of (_____).

.

On January 1, 2017, Novak Company acquires $320,000 of Spiderman Products, Inc., 8% bonds at a price of $296,540. Interest is received on January 1 of each year, and the bonds mature on January 1, 2020. The investment will provide Novak Company a 11% yield. The bonds are classified as held-to-maturity.

Instructions

(a)  

Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method.

(b)  

Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method.

(c)  

Prepare the journal entry for the interest revenue and discount amortization under the straight-line method at December 31, 2018.

(d)  

Prepare the journal entry for the interest revenue and discount amortization under the effective-interest method at December 31, 2018.

You are a junior accountant, recently employed by RM Resources Ltd., a public company traded on the Toronto Stock Exchange. The company is based in Alberta and it operates two divisions: an oil and gas exploration division, and a heavy equipment manufacturing division. The company is aggressively pursuing overseas partners who could provide further financing to expand operations into Asia.

You arrive at work on a Monday morning in early January, 2019 and receive the following email:

To: Junior Accountant

From: Controller

Re: Preparation for annual audit

I am preparing the working papers for the December 31, 2018 year-end audit to present to the company’s auditors when they arrive late next week. In reviewing the draft financial statements and other information, I have identified a number of issues that need to be addressed:

1. Inventory Errors: in reviewing the documentation obtained during the December 31, 2018 inventory count for the heavy equipment division, I discovered a number of errors. The details are provided below.

1. We received an invoice from a supplier on January 3, 2019 for goods purchased with a cost of $61,000. This invoice was entered into our accounts payable system on that date. The goods were shipped by the supplier on December 26, 2018 and were received by us on January 3, 2019. The invoice terms were 2/10, n30, FOB shipping. These goods were a special order for one of our customers, and we sold the goods to the customer on January 7, 2019 for $93,000. These goods were not included in the December 31 inventory count. What are the key financial reporting issues? Where possible. What is the potential impact of the issue on the balance sheet and income statement, and explain why an adjustment is required? If there are areas where judgment is involved, or the accounting treatment is not clear. What are the alternatives that are available and factors that need to be considered in choosing an alternative?

The Asian GardenAsian Garden​, a local Thai​ restaurant, expects sales to be $780,000 in January. Its average customer restaurant bill is $65. Only 20% of the restaurant bills are paid with​ cash; 50% are paid with credit cards and 30% with debit cards. The transaction fees charged by the credit and debit card issuers are as​ follows:

The Red Fusion​, a local Thai​ restaurant, expects sales to be $ 300 comma 000 in January. Its average customer restaurant bill is $ 25. Only 40 % of the restaurant bills are paid with​ cash; 30 % are paid with credit cards and 30 % with debit cards. The transaction fees charged by the credit and debit card issuers are as​ follows:
Credit​ cards: $ 0.25 per transaction​ + 5 % of the amount charged
Debit​ cards: $ 0.45 per transaction​ + 4 % of the amount charged

How much of the total sales revenue is expected to be paid in​ cash?
2.
How many customer transactions does the company expect in​ January?
3.
How much of the total sales revenue is expected to be paid with credit​ cards?
4.
How many customer transactions will be paid for by customers using credit​ cards?
5.
When budgeting for​ January's operating​ expenses, how much should the restaurant expect to incur in credit card transaction​ fees?
6.
How much of the total sales revenue is expected to be paid with debit​ cards?
7.
How many customer transactions will be paid for by customers using debit​ cards?
8.
When budgeting for​ January's operating​ expenses, how much should the restaurant expect to incur in debit card transaction​ fees?
9.
How much money will be deposited in the​ restaurant's bank account during the month of January related to credit and debit card​ sales? Assume the credit and debit card issuers deposit the funds on the same day the transactions occur at the restaurant​ (there is no processing​ delay).
10.
What is the total amount of money that the restaurant expects to deposit in its bank account during the month of January from​ cash, credit​ card, and debit card​ sales? Again assume the credit and debit card issuers deposit the funds on the same day that the transaction occurs.

The Arm & Hammer^® product—sodium bicarbonate—was introduced in the US in 1846 as “baking soda.” For the next 100 years, Arm & Hammer^® was a staple in the typical American home.

Church & Dwight Company, a publically traded company, is the parent company of the Arm & Hammer^® product line. Although originally used only for baking purposes, the company has leveraged the other key attributes of basic baking soda (cleaning and deodorizing benefits) into numerous applications.

The first Arm & Hammer^® detergent was introduced as early as 1970. In 1972, the product benefits expanded to use inside the refrigerator and freezer to eliminate odors. By 2005, the Arm & Hammer^® product line included laundry detergent, carpet deodorizers, Dental Care^® products, cat litter, Clear Balance^® pool maintenance tablets; and CleanShower^® for the bathroom.

In addition, line filling was accomplished through acquisitions of companies like USA Detergents, Carter-Wallace, Inc., and Orange Glo International. These acquired product lines allowed Arm & Hammer^® to expand their product line further into the personal care and household product segments.

In 1995, Church & Dwight Co., Inc. reported annual sales of $600 million. Their 2007 annual report reflects annual sales of $2.22 billion—40% of which is generated by Arm & Hammer products. Church & Dwight Company divides their product lines into three segments: consumer domestic, consumer international, and special product division (B2B). In 2007, consumer domestic (of which Arm & Hammer^® is the major player) generated 71% of total revenues. Wal-Mart, Arm & Hammer’s^® leading retailer, produced 22% of total consumer domestic revenues.

Level 1: Qualitative Questions

1.   What is the core benefit of Arm & Hammer^® products?

2.   Would you consider Arm & Hammer^® to have a “full-line product strategy?”

3.   Would you consider Arm & Hammer products to be in direct competition with those offered by Proctor & Gamble? Why?

Level 2: Quantitative Questions

1.         In dollars, how important is the Wal-Mart relationship to the Arm & Hammer^® segment of Church & Dwight’s annual sales?

2.         Some marketing gurus warn that line expansions can dilute the brand. Do you feel this should be a concern for Arm & Hammer?