Given the following information:

Other information:

• The manufacturer uses FIFO.
• All Variable costs are direct costs

Required:

1. Prepare an income statement for the Current Year based on Variable Costing.

2. Prepare an income statement for the Current Year based on Absorption Costing.

3. Reconcile the difference in Net Income between Variable Costing and Absorption Costing for the current year.

4. Near the very end of the fiscal year, the production manager noted that if Net Income increases by $200 they will get a big bonus. How can the production manager increase Net income using Absorption costing even though no additional units will be produced?

The balance sheet data below for Randolph Company for two recent years.

Required:

a. Using horizontal analysis, show the percentage change for each balance sheet item using Year 1 as a base year. If required, round percentage to one decimal place. If required, use the minus sign to indicate decreases in amounts and percents (negative values).

b. Using vertical analysis, prepare a comparative balance sheet. If required, round your answers to one decimal place.

A company has increasing accounts receivable, increasing inventory and decreasing accounts payables year over year on the balance sheet.  Which of the following is correct about the impact operating cash flow?

On July 1, Year 1, Danzer Industries Inc. issued $1,300,000 of 9-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $1,226,906. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Required:

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. If an amount box does not require an entry, leave it blank.

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2. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank.

a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. (Round your answer to the nearest dollar.)

How often do solar eclipses occur? a) approx. once a year b) approx. twice a year

PROJECT CASH FLOW

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project:

The company has a 40% tax rate, and its WACC is 11%.

Write out your answers completely. For example, 13 million should be entered as 13,000,000.

1. What is the project's cash flow for the first year (t = 1)? Round your answer to the nearest dollar.
   $
2. 
   
3. If this project would cannibalize other projects by $1 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar.
   The firm's project's cash flow would now be $ .
4. 
   
5. Ignore part b. If the tax rate dropped to 30%, how would that change your answer to part a? Round your answer to the nearest dollar.
   The firm's project's cash flow would -Select-increase or decrease Item 3 by $

Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 5%, paid annually. Today, the debt is selling at $1,140. If the firm’s tax bracket is 21%, what is its percentage cost of debt? Assume a face value of $1,000

The following data is provided for the S&P 500 Index:

Refer to the information above. Calculate the 20-year arithmetic average annual rate of return on the S&P 500 Index.

Question 22 options:

Apple employed Bobby in Year 1. Bobby earned $5,100 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $110,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom’s federal income tax withholding amount is $900 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee.

Required
a. Answer the following questions.
1. What is Bobby's net pay per month?
2. What amount does Bobby pay monthly in FICA payroll taxes?
3. What is the total payroll tax expense for Apple for January Year 1? February Year 1? March Year 1? December Year 1?
b. Assume that instead of $5,100 per month Bobby earned $9,600 per month. Answer the following questions.
1. What is Bobby net pay per month?
2. What amount does Bobby pay monthly in FICA payroll taxes?
3. What is the total payroll tax expense for Apple for January Year 1? February Year 1? March Year 1? December Year 1?

The following bond investment transactions were completed during a recent year by Starks Company:

Required:

Journalize the entries for the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.

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JOURNAL

ACCOUNTING EQUATION