Bagwell's net income for the year ended December 31, Year 2 was
$199,000. Information from Bagwell's comparative balance sheets is
given below. Compute the cash received from the sale of its common
stock during Year 2.
| At December 31 | Year 2 | Year 1 | ||||
| Common Stock, $5 par value | $ | 514,000 | $ | 462,600 | ||
| Paid-in capital in excess of par | 962,000 | 865,600 | ||||
| Retained earnings | 702,000 | 594,600 | ||||
Multiple Choice
$51,400.
$199,000.
$107,400.
$96,400.
$147,800.
Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 197,000 in October, 205,500 in November, and 202,000 in December. Glaston assigns variable overhead at a rate of $0.80 per unit of production. Fixed overhead equals $154,000 per month. Compute the total budgeted overhead that would appear on the factory overhead budget for month of October.
Multiple Choice
$351,000.
$154,000.
$157,600.
$318,400.
$311,600.
In: Accounting
Suppose a 10-year zero-coupon bond (zero) is trading spot at 6% and a 20-year zero is trading spot at 8%. We know that the 10 year forward rate for a 10 year zero must be 0.1004 (annual compounding). All are risk free. If the rates are not 0.1004 for the forward you can make a free profit by using arbitrage.
Suppose you have $0 dollars today but are allowed to sell and buy $100,000 worth of zero coupon bonds (and commit to the forward 10 year zero coupon bond using any cash you have - or need to reborrow - after 10 years from your initial trades).
(a) What trades do you execute if the forward rate is 9% - report your profit.
(b) What trades do you execute if the forward rate is 11% - report your profit.
(c) Comment on why the forward rate must be 10.04% in light of your results.
In: Accounting
13. Accelerated Solutions has the following data for the year
ended December 31, Year 1:
|
Accounts receivable (January 1, Year 1) |
$ 350,000 |
|
Credit sales |
1,200,000 |
|
Collections from credit customers |
850,000 |
|
Customer accounts written off as uncollected |
10,000 |
|
Allowance for doubtful accounts (January 1, Year 1) |
35,000 |
|
Estimated uncollected accounts based on an aging analysis (December 31, Year 1) |
50,000 |
Refer to Accelerated Solutions. If the aging approach is used to estimate bad debts, what is the balance in the allowance for doubtful accounts after the bad debt expense adjustment?
|
|
a. |
$10,000 |
|
|
b. |
$15,000 |
|
|
c. |
$25,000 |
|
|
d. |
$50,000 |
|
14. MicroScan Technologies reported the following
information:
|
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|
Refer to MicroScan Technologies. How much cash was received for interest during Year 2?
|
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|
15. AT&U Company has the following data for the year ended
December 31, Year 1:
|
||||||||||||
|
Refer to AT&U Company. If the company estimates its bad debt to be 2% of net credit sales, what will be the balance in the allowance for doubtful accounts after the adjustment for bad debt expense?
|
|
In: Accounting
Juanita earns $56,000 a year before-tax, spends $31,500 per year on consumption, and saves the rest at the end of the year. She also has $14,400 in her savings account. She wants to retire in 25 years with a million dollars. Her average tax rate is 25%, and her marginal tax rate is 35%. What before-tax rate of return does she need to make on her investments in order to achieve her goal?
a. 8.99%
b. 13.71%
c. 5.13%
d. 6.49%
e. None of the above.
In: Accounting
Atlanta Tours Company entered into a five-year lease on January 1, Year 1, with Duck Boats, Inc. for a customized duck boat. Duck Boats, Inc. will provide a vehicle to Atlanta Tours Company with the words "Gone with the Wind" carved into the sides. Following are the terms of the lease arrangement.
•Fair value of the wagon at the inception of the lease is $10,000
•There is an eight-year estimated economic life
•Estimated (unguaranteed) residual value is $3,500. Atlanta Tours Company does not absorb any gains or losses in fluctuations of the fair value of the residual value.
•Annual lease payments of $2,000 are due on January 1 of each year. The implicit interest rate in the lease is 6 percent.
•There is an option to purchase at end of lease term for $4,000.
•The lease is noncancelable and may not be extended.
Required:
1.Discuss whether Atlanta Tours Company should classify this lease as an operating lease or as a finance lease under (a) IFRS and (b) U.S. GAAP.
2.Discuss your reasoning. Do not forget to include proper APA formatting and citation where necessary.
In: Accounting
Forten Company's current year income statement, comparative
balance sheets, and additional information follow. For the year,
(1) all sales are credit sales, (2) all credits to Accounts
Receivable reflect cash receipts from customers, (3) all purchases
of inventory are on credit, (4) all debits to Accounts Payable
reflect cash payments for inventory, and (5) Other Expenses are
paid in advance and are initially debited to Prepaid
Expenses.
| FORTEN COMPANY Comparative Balance Sheets December 31 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year | Prior Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash | $ | 60,400 | $ | 80,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts receivable | 76,340 | 57,625 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory | 286,156 | 258,800 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepaid expenses | 1,280 | 2,035 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total current assets | 424,176 | 398,960 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment | 150,500 | 115,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accum. depreciation—Equipment | (40,125 | ) | (49,500 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 534,551 | $ | 464,460 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities and Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts payable | $ | 60,141 | $ | 125,175 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term notes payable | 12,100 | 7,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total current liabilities | 72,241 | 132,575 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term notes payable | 61,500 | 55,750 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 133,741 | 188,325 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stock, $5 par value | 173,250 | 157,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Paid-in capital in excess of par, common stock | 48,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retained earnings | 179,560 | 118,885 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 534,551 | $ | 464,460 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Problem 16-4AA Indirect: Cash flows spreadsheet LO P4 Required: |
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In: Accounting
A forty-five-year-old man with a three-year history of cardiovascular disease has entered the hospital with a stroke that has paralyzed his right side and caused him to aspirate food of any consistency. His mental status is clouded and there is disagreement as to whether or not he has decisional capacity. His language capacity is only “yes” and “no,” and his responses are inconsistent. The attending physician is convinced that the patient has lost decisional capacity while two family members are equally convinced that he has decisional capacity. The patient’s wife and two other children are ambivalent about his competency to make decisions. The prognosis for recovery of safe swallowing and speech approaches zero because of the dense damage to the cerebral cortex visible on brain imaging. Two neurological consultants have verified that recovery is likely to be minimal and that permanent, severe disability will be the outcome.
The patient does not have an advance directive. The patient’s wife
says that they never did discuss his preferences about
life-sustaining treatment. She is convinced that he would not want
to live in this disabled condition, but is uncertain whether to
request the placement of a feeding tube. Two of her four adult
children are strongly opposed to the tube placement, while the
other two insist that not to do so would be to “kill our father.”
The patient’s wife is torn between these two positions, but finally
requests that the tube be placed.
The attending physician and the rest of the treatment team are
opposed to placing the feeding tube. Their argument is that the
patient has “minimal consciousness” and will not improve. They
define this as a futile situation with no reasonable expectation of
recovery. Furthermore, two nurses claim that during previous
hospitalizations for episodes of cardiovascular events the patient
told them that he would not want to be sustained by artificial
means — not by ventilators, renal dialysis, or tube feeding. It is
their position that the patient has expressed his preference to not
be kept alive in a futile situation.
The family requests an ethics consultation.
1. The family is divided over whether or not their husband/father should be placed on a feeding tube.
If the husband is deemed competent, who makes the final decision? _________
If not competent, who is the husbands’ official surrogate? ___________
The burdens the treatment (feeding tube) imposes should not be a consideration for the adult children? True_________ False _________
Ethics committees play an advisory role? True _______ False______
Ethics committees act as advocates for the healthcare team? True______ False ________
Decisions of ethics committee are legally binding? True____ False____
Please briefly answer/discuss the following:
The judgment of futility should be a conclusion of a communications process, not a beginning. How would you propose beginning the communication process with the family in this case?
First consider, what is the purpose of an ethics committee?
What information should be shared?
Who should be present?
What alternatives are on the table in this case?
Should the nurses’ statements be considered?
As part of the healthcare team, what is your goal in participating in the discussion?
In: Nursing
|
GIOJ is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs at high and low levels of activity for recent years are given below: |
|
Level of Activity |
|||||
| Low | High | ||||
| Direct labor-hours | 48,300 | 64,400 | |||
| Total factory overhead costs | $ | 269,360 | $ | 304,780 | |
|
The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 48,300-hour level of activity as follows: |
| Indirect materials (variable) | $ | 86,940 |
| Rent (fixed) | 134,000 | |
| Maintenance (mixed) | 48,420 | |
| Total factory overhead costs | $ | 269,360 |
|
To have data available for planning, the company wants to break down the maintenance cost into its variable and fixed cost elements. |
| Required: |
| 1. |
Estimate how much of the $304,780 factory overhead cost at the high level of activity consists of maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $304,780 consists of indirect materials and rent. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) |
| 2. |
Using the high-low method, estimate a cost formula for maintenance. (Do not round intermediate calculations.) |
| 3. |
What total factory overhead costs would you expect the company to incur at an operating level of 53,130 direct labor-hours? (Do not round intermediate calculations.) |
In: Accounting
Gerry pays $W to buy a ten-year annuity with end-of-year payments of $1,400. This purchase price allows her to replace her capital by means of a savings account that has an annual effective interest rate of 3% and also to earn an overall annual yield of 6% for the ten years of the annuity. Find W.? The answer is 9508.9. Please show steps to the answer without use of excel.
In: Finance
Jan is a 75-year old woman who has lost significant weight in the last year. She has complaints of anorexia and joint pain. She states she just doesn’t feel like eating sometimes. She has had significant constipation causing hemorrhoids and states it is very difficult to stool.
- What other medical history is necessary in order to effectively treat Jan?
- What education might be helpful?
- What are complications you might consider?
- What therapies might benefit Jan's health?
In: Nursing