Minden Company manufactures a high-quality wooden birdhouse that sells for $25
per unit. Variable costs are $12 per unit, and fixed costs total $210,000. The
company sold 30,000 birdhouses to customers during 2020. The president of
Minden Company believes the following changes should be made in 2021:

1. the selling price of the birdhouse should be reduced by 20%

2. increase advertising by $33,000

Assume these changes are made. Calculate the number of units Minden Company
must sell in 2021 in order to earn a net income that is 40% larger than the
net income earned in 2020.

I'm sorry for posting this, I just wanted to make sure I got the right answer before I posted this homework. Kind of tricked me up a little.

Three different companies each purchased trucks on January 1, 2018, for $74,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 80,000 miles in 2018, 60,000 miles in 2019, 45,000 miles in 2020, and 70,000 miles in 2021. Each of the three companies earned $63,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation.

Answer each of the following questions. Ignore the effects of income taxes.

5. Which company will report the lowest amount of cash flow from operating activities on the 2020 statement of cash flows?

Swifty Corporation has 2,000 shares of 10%, $130 par value preferred stock outstanding at December 31, 2020. At December 31, 2020, the company declared a $140,000 cash dividend. Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios.

1. The preferred stock is noncumulative, and the company has not missed any dividends in previous years.

The dividend paid to preferred stockholders $

The dividend paid to common stockholders $

2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years.

The dividend paid to preferred stockholders $

The dividend paid to common stockholders $

3. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years.

The dividend paid to preferred stockholders $

The dividend paid to common stockholders $

Purple Co. began business on January 1, 2020. The following items caused the only differences between pretax financial income and taxable income.

1. On January 2, 2020, heavy equipment costing $800,000 was purchased. The equipment had a life of 4 years and no salvage value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below:

                                                      Tax Depreciation                                        

              2020              2021                 2022                   2023                Total    

            $360,000         $180,000          $140,000          $120,000          $800,000

2. On January 2, 2020, $360,000 was collected in advance for rental of a building for a two-year period. The entire $360,000 was reported as taxable income in 2020, but $180,000 of the $360,000 was reported as unearned revenue at December 31, 2020 for book purposes.

3. In 2020, the company had an accounts receivable of $420,000 for goods that had been delivered to the customer in 2020. It will be collected in 2021.

4. Purple Co. deducts insurance expense of $210,000 for tax purposes in 2020, but the expense is not yet recognized for accounting purposes. In 2021, 2022, and 2023, no insurance expense will be deducted for tax purposes, but $70,000 of insurance expense will be reported for accounting purposes in each of these years.

The enacted tax rates existing at December 31, 2021 are:

2020                 20%                             2022                 30%

            2021                20%                              2023                30%

                                                                        2024                30%

Instructions:

1. For items 1)-4), indicate whether it involves a deferred tax asset, deferred tax liability, or permanent difference.

1):                    2):                    3):                    4):                    

Purple’s taxable income for 2020 was $900,000. Prepare the journal entry to record income tax expense, deferred taxes, and the income taxes payable for 2020. Show your work.

How would you calculate the below for the biomedical company Resmed within the year of 2019-2020?

- Liquidity

- Leverage

- Profitability

- Market Value

Topic: Global Source Health Care

Summary:

Background

Sales Strategy
Global Source presents itself as an international recruitment specialist while offering domestic travel staffing as an add on service.
This strategy is currently ineffective.
Allocating Resources
Three Options:
Continue aggressive account acquisition
Penetrate existing accounts
Cross-selling existing accounts
Penetrate Existing Accounts
Cross-Selling Existing Accounts
Continue Aggressive Account Acquisition
Cold-calling hospitals, continue current sales strategy
Global Source Healthcare: Allocating Sales Resources
What Should Global Source Do?
Up-selling to current accounts
Pros
Cons
High staffing margins 50-60%
Cons:
- Too much competition
- Too little staff
- Takes away effort from
competitive advantage
- VA is only large business prospect.
Help entrench Global Source in current accounts
Maximize revenue potential from each client
Pros:
- VA owns network of 163 hospitals
- Excellent reference account
Complex process that many hospitals are unfamiliar with
Clients need to be educated on benefits of international recruitment
Easy to up-sell existing international recruitment clients on domestic staffing
Client relationships are already fragile
How is the Sales Strategy ineffective?
Competitive Advantage in international staffing of nurses
Competition has difficulty understanding local dynamics of India market
Untapped India market
Easily replaced as a vendor for domestic staffing
International Versus Domestic Staffing Breakdown
Shamail Siddiqi - CEO
International
Domestic
Many hospitals did not seem comfortable dealing with one company for international and domestic staffing
Global Source does not have a competitive edge as a company
People responsible for international staffing had nothing to gain by negotiating better billing rates for domestic staff.
- Founder of Global Source Health Care
- Saw an opportunity in International sourcing for healthcare companies

- Aligned themselves with a CGFNS test-preparation company in Bangalore to insource Indian nurses
Very competitive market
Low staffing margins 10-15%
Pros

Cons
Hospitals hesitant to bring on new staffing companies.
Global Source is secondary vendor in marketplace for domestic staffing, and can easily be replaced.
Not enough expenses or resources to recruit large international staffing.
Established a strategic alliance with a CGFNS test-preparation company in Bangalore
Global Source
- Limited sales personnel and budget
- Healthcare staffing company
- Domestic and international services
- First international
- Forced into both due to lack of funding

Questions: I just need you guys to help me answer the following question please.

What are the primary intangible elements of the Global Source Healthcare service the salespeople should emphasize?

With the domestic market experiencing problems, should Global Source move to an exclusive focus on international service?

Why or why not?

On January 1, 2020, Ivanhoe Company has the following defined benefit pension plan balances.

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $506,000 are created. Other data related to the pension plan are as follows.

1.Prepare a pension worksheet for the pension plan for 2020 and 2021. (Enter all amounts as positive.)

2. For 2021, prepare the journal entry to record pension-related amounts

On January 1, 2020, Sage Company has the following defined benefit pension plan balances.

Projected benefit obligation$4,571,000

Fair value of plan assets4,210,000

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $492,000 are created. Other data related to the pension plan are as follows.

2020

2021

Service cost

$152,000 $179,000

Prior service cost amortization

0 89,000

Contributions (funding) to the plan

236,000 285,000

Benefits paid

198,000 275,000

Actual return on plan assets

252,600 261,000

Expected rate of return on assets

6% 8%

Q. Prepare a pension worksheet for the pension plan for 2020 and 2021

Q. For 2021, prepare the journal entry to record pension-related amounts.

Mac Leasing Company (lessor) and Ash Corporation (lessee) signed a four-year lease on January 1, 2020. The underlying asset has an estimated life of six years, and the property reverts to Mac at the end of the lease term. Lease payments of $34,577 are payable on January 1 of each year and were set to yield Mac a return of 8%, which was known to Ash. The estimated residual value at the end of the lease term is $29,000 and is guaranteed by Ash Corporation. Ash expects the estimated residual value at the end of the lease term to be $29,000. The lease contains no purchase option.

a) Prepare an amortization schedule of the lease liability.

b)Prepare the entries for Ash Company for 2020.

c)Let’s now assume that Ash Corporation expects the estimated residual value at the end of the lease term to be $10,150 instead. Prepare the entries for Ash Corporation for 2020.