Horizon Corporation manufactures personal computers. The company began operations in 2016 and reported profits for the years 2016 through 2019. Due primarily to increased competition and price slashing in the industry, 2020’s income statement reported a loss of $20 million. Just before the end of the 2021 fiscal year, a memo from the company’s chief financial officer to Jim Fielding, the company controller, included the following comments:
If we don’t do something about the large number of unsold computers already manufactured, our auditors will require us to write them off. The resulting loss for 2021 will cause a violation of our debt covenants and force the company into bankruptcy. I suggest that you ship half of our inventory to J.A. Sales in Nevada. I know the company’s president and he will accept the merchandise and acknowledge the shipment as a purchase. We can record the sale in 2021 which will boost profits to an acceptable level. The J.A. Sales will simply return the merchandise in 2022 after the financial statements have been issued.
In: Accounting
On behalf of our tax, financial advisory and medical service
clients, we thank you again for taking the time to review our
accounting processes. Our business continues to grow despite the
impact that COVID-19 is having on our economy. In fact, the sound
and reliable guidance that you and particularly members of ACC 331
provided to address previous concerns is needed more now than ever
before.
Based on your experience and insight, please help us identify six
recent scams (occurring after March 1, 2020) directly related to
medicine (COVID-19) or the stimulus check payment process, and
state what we should or can do to avoid becoming a victim.
Specifically, for each scam, identify (1) a specific target group
or person (e.g. the elderly, retirees or anyone), (2) specific
action steps taken by the scammer(s) or fraudster(s) and (3) what
we could do to avoid becoming a victim.
For each scam, try to address parts (1), (2) and (3) by limiting
your answer to 100 words.
In: Accounting
Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2020, and December 31, 2019.
Duke Company | Lord Company | |||||||
|---|---|---|---|---|---|---|---|---|
2020 | 2019 | 2020 | 2019 | |||||
| Net sales | $1,878,000 | $559,000 | ||||||
| Cost of goods sold | 1,100,508 | 296,829 | ||||||
| Operating expenses | 261,042 | 79,937 | ||||||
| Interest expense | 9,390 | 4,472 | ||||||
| Income tax expense | 54,462 | 6,149 | ||||||
| Current assets | 329,000 | $312,100 | 83,200 | $78,300 | ||||
| Plant assets (net) | 519,900 | 501,200 | 139,800 | 124,200 | ||||
| Current liabilities | 65,400 | 74,800 | 34,200 | 29,600 | ||||
| Long-term liabilities | 108,800 | 90,400 | 30,200 | 26,000 | ||||
| Common stock, $10 par | 499,500 | 499,500 | 120,500 | 120,500 | ||||
| Retained earnings | 175,200 | 148,600 | 38,100 | 26,400 | ||||
(a)
Prepare a vertical analysis of the 2020 income statement data for Duke Company and Lord Company. (Round percentages to 1 decimal place, e.g. 12.1%.)
Condensed Income Statement | |||||||
|---|---|---|---|---|---|---|---|
Duke Company | Lord Company | ||||||
Dollars | Percent | Dollars | Percent | ||||
select an income statement item Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues | $enter a dollar amount | enter a percentage number rounded to 1 decimal place % | $enter a dollar amount | enter a percentage number rounded to 1 decimal place % | |||
select an income statement item Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues | enter a dollar amount | enter a percentage number rounded to 1 decimal place % | enter a dollar amount | enter a percentage number rounded to 1 decimal place % | |||
select a summarizing line for the first part Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues | enter a total amount for the first part | enter total percentages rounded to 1 decimal place % | enter a total amount for the first part | enter total percentages rounded to 1 decimal place % | |||
select an income statement item Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues | enter a dollar amount | enter a percentage number rounded to 1 decimal place % | enter a dollar amount | enter a percentage number rounded to 1 decimal place % | |||
select a summarizing line for the second part Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues | enter a total amount for the second part | enter total percentages rounded to 1 decimal place % | enter a total amount for the second part | enter total percentages rounded to 1 decimal place % | |||
select an opening name for the third part Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues | |||||||
select an income statement item Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues | enter a dollar amount | enter a percentage number rounded to 1 decimal place % | enter a dollar amount | enter a percentage number rounded to 1 decimal place % | |||
select a summarizing line for the third part Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues | enter a total amount for all three parts | enter total percentages rounded to 1 decimal place % | enter a total amount for all three parts | enter total percentages rounded to 1 decimal place % | |||
select an income statement item Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues | enter a dollar amount | enter a percentage number rounded to 1 decimal place % | enter a dollar amount | enter a percentage number rounded to 1 decimal place % | |||
select a closing name for this statement Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues | $enter a total net income or loss amount | enter total percentages rounded to 1 decimal place % | $enter a total net income or loss amount | enter total percentages rounded to 1 decimal place % | |||
In: Accounting
In: Physics
In: Advanced Math
This probability question from my physics class is confusing me, any explanation really appreciated!
An analogy: a child with blocks and constraints on physical systems. A certain child's room is partitioned into 100 squares. His toy box in the corner is exactly one square in size and contains some number of blocks. When he plays with the toys, he tends to throw them around and evenly scatter them about the room.
a) Assume that there are now three blocks (red, green, and blue). Also assume that all three blocks can fit on one square. How many accessible states are there for this system, if they are all in the toy box, lid is closed, and the lid is locked in the closed position? (All the other constraints imposed in the story still apply.)
b) What is the total number of accessible microstates for this system, if the toy -box lid is opened?
c) If the boy plays for a long time with all the blocks (and randomly leaves them in the toy box or on one of the floor squares), what is the probability of finding the red block in the toy box, the blue box on square #15, and the green block on square #75? Explain how you determined this result.
d) Again, after a long time, what is the probability of finding the red block in the toy box independently of where the blue and green blocks are?
e) How would probability in (d) change if we asked for it after the boy had been playing for only 15 seconds? Explain why.
f) Explain what condition must be satisfied to say that a system is equally likely to be in any of its accessible microstates.
In: Statistics and Probability
9.
In a small open economy if exports equal $16 billion and imports equals $19 billion, then there is a trade ________ and ________ net capital outflows.
a. deficit; negative
b. surplus; positive
c. surplus; negative
d. deficit; positive
10.
Costco chooses to pay its workers a median salary of $20 an hour, even though the federal minimum wage is currently set at $7.25 an hour. This would be an example of:
a. efficiency wage theory.
b. adverse selection
c. irrational wage theory
d. wage fund theory
e. collective bargaining
In: Economics
Discussion Questions
1.What would you recommend to union workers whose employer is
threatening to close down
unless they agree to wage decreases or other concessions?
2.Is there some alternative to cutting wages or closing down? What
is it?
3.Union workers often feel that the company is bluffing when it
threatens to close. How can such
doubts be settled so that more open negotiations can take
place?
4.Does government have a right to interfere with organizations
(i.e., union and employer) that have
already negotiated a collective agreement and force them to
renegotiate?
In: Finance
The data (3-2 WeightLoss (Links to an external site.)) shows the results of a weight-loss contest sponsored by a local newspaper. Participants were encouraged to compete over a one-month period. Was there a significant weight loss? That is, TEST at the 1% level of significance if the mean weights after the contest are lower than the weights before the contest? Use “After” as Population 1 and “Before” as Population 2.
| Name | After | Before |
| Michael M. | 202.5 | 217 |
| Tracy S. | 178 | 188 |
| Gregg G. | 210 | 225 |
| Boydea P. | 157 | 168 |
| Donna I. | 169 | 178 |
| Elizabeth C. | 173.5 | 182 |
| Carole K. | 163.5 | 174.5 |
| Candace G. | 153 | 161.5 |
| Jo Anne M. | 170.5 | 177.5 |
| Willis B. | 336 | 358.5 |
| Marilyn S. | 174 | 181 |
| Tim B. | 197.5 | 210 |
In: Statistics and Probability
The Management of a large company is debating an investment. Management projects the investment will earn $100,000 annually. In addition, the investment will require the company to purchase $600,000 in assets. Management’s decision is summarized in the following chart:
|
Before Investment |
After Investment |
|
|
Operating income |
600,000 |
700,000 |
|
Average operating assets |
3,000,000 |
3,600,000 |
Required:
1. Assume Management is evaluated based on growth in the company’s ROI. Compute the Return on Investment for the company before and after the investment. Would you recommend management make the investment?
2. Assume Management is evaluated based on growth in the company’s residual income. The company’s required rate of return is 15%. Compute the company’s residual income before and after the investment. Would you recommend Gentry make the investment?
3. Give at least one advantage and one disadvantage of using measures like ROI and residual income to evaluate company performance.
In: Accounting