You are the owner of a discount furniture company that has expanded from a rural store in one state to 20 stores across the United States. Discuss at least one reason why your company should think about implementing an enterprise resource planning (ERP) solution. Discuss at least one challenge to implementing an ERP.
In: Operations Management
This is for a hotel project. The first phase is a restaurant and the 2nd phase is the hotel. It will be located on a small island in the Caribbean in the United States Virgin Islands.
In: Operations Management
One of the authors came across an article (USA Today, 2008) that said that on average Americans have visited 16 states in the United States. In a survey of 50 students in her introductory statistics class, she found the average number of states the students had visited to be 9.48 and the standard deviation to be 7.13. The data were not strongly skewed.
1. Identify the observational unit for this study.
a. students
b. Americans
c. number of states
2. Identify the variable of interest and whether it is categorical or quantitative.
a. number of U.S. states visited, categorial
b. number of students, quantitative
c. number of students, categorial
d. number of U.S. states visited, quantitative
3. Regardless of your answer to part (c), state the null and the alternative hypotheses in symbols, to test whether the average number of states all students at the author’s school have visited is different from 16.
a. H0: mu = 16, Ha: mu ≠ 16
b. H0: mu = 16, Ha: mu > 16
c. H0: mu = 16, Ha: mu < 16
4. Using the 2SD approach to find a 95% confidence interval for the average number of states all students at the author’s school have visited. Round to two decimal places
In: Statistics and Probability
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2020, for $187,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Milani purchased an additional 30 percent of Seida for $653,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,100,000 in total. Seida’s January 1, 2021, book value equaled $1,950,000, although land was undervalued by $135,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an eight-year remaining life. During 2021, Seida reported income of $267,000 and declared and paid dividends of $120,000.
Prepare the 2021 journal entries for Milani related to its investment in Seida. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1
Record acquisition of Seida stock.
2
Record the 40% income earned during period by Seida.
3
Record 2021 amortization for trademark excess fair value.
4
Record dividend declaration from Seida.
5
Record collection of dividend from investee.
In: Accounting
On January 1, 2020, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,435,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $920,000, retained earnings of $470,000, and a noncontrolling interest fair value of $615,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing.
During the next two years, Smashing reported the following:
| Net Income | Dividends Declared | Inventory Purchases from Corgan | |||||||
| 2020 | $ | 370,000 | $ | 57,000 | $ | 320,000 | |||
| 2021 | 350,000 | 67,000 | 340,000 | ||||||
Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2020 and 2021, 30 percent of the current year purchases remain in Smashing's inventory.
In: Accounting
On January 1, 2020, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $1,161,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,220,000 and Retained Earnings of $61,000. The acquisition-date fair value of the 10 percent noncontrolling interest was $129,000. QuickPort attributed the $9,000 excess of NetSpeed's fair value over book value to a database with a five-year remaining life.
During the next two years, NetSpeed reported the following:
| Net Income | Dividends Declared | |||||
| 2020 | $ | 12,600 | $ | 1,800 | ||
| 2021 | 18,000 | 1,800 | ||||
On July 1, 2020, QuickPort sold communication equipment to NetSpeed for $15,000. The equipment originally cost $18,500 and had accumulated depreciation of $5,300 and an estimated remaining life of three years at the date of the intra-entity transfer.
In: Accounting
In: Accounting
On January 1, 2020, Ridge Road Company acquired 25 percent of the voting shares of Sauk Trail, Inc., for $3,800,000 in cash. Both companies provide commercial Internet support services but serve markets in different industries. Ridge Road made the investment to gain access to Sauk Trail’s board of directors and thus facilitate future cooperative agreements between the two firms. Ridge Road quickly obtained several seats on Sauk Trail’s board, which gave it the ability to significantly influence Sauk Trail’s operating and investing activities.
The January 1, 2020, carrying amounts and corresponding fair values for Sauk Trail’s assets and liabilities follow:
| Carrying Amount | Fair Value | |||||
| Cash and receivables | $ | 165,000 | $ | 165,000 | ||
| Computing equipment | 5,495,000 | 6,580,000 | ||||
| Patented technology | 155,000 | 4,110,000 | ||||
| Trademark | 205,000 | 2,110,000 | ||||
| Liabilities | (240,000 | ) | (240,000 | ) | ||
Also, as of January 1, 2020, Sauk Trail’s computing equipment had a seven-year remaining estimated useful life. The patented technology was estimated to have a five-year remaining useful life. The trademark's useful life was considered indefinite. Ridge Road attributed to goodwill any unidentified excess cost.
During the next two years, Sauk Trail reported the following net income and dividends:
| Net Income | Dividends Declared | |||||
| 2020 | $ | 1,910,000 | $ | 205,000 | ||
| 2021 | 2,095,000 | 215,000 | ||||
How much of Ridge Road’s $3,800,000 payment for Sauk Trail is attributable to goodwill?
What amount should Ridge Road report for its equity in Sauk Trail’s earnings on its income statements for 2020 and 2021?
What amount should Ridge Road report for its investment in Sauk Trail on its balance sheets at the end of 2020 and 2021?
In: Accounting
On December 31, 2020, Nash Company acquired a computer from Plato Corporation by issuing a $609,000 zero-interest-bearing note, payable in full on December 31, 2024. Nash Company’s credit rating permits it to borrow funds from its several lines of credit at 12%. The computer is expected to have a 5-year life and a $63,000 salvage value.
Prepare the journal entry for the purchase on December 31, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
December 31, 2020 |
|||
Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2021. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
December 31, 2021 |
|||
|
(To record the depreciation.) |
|||
|
December 31, 2021 |
|||
|
(To amortize the discount.) |
|
Schedule of Note Discount Amortization |
|||||
|
|
Debit, Interest Expense Credit, |
Carrying Amount |
|||
| 12/31/20 | $ | $ | |||
| 12/31/21 | |||||
| 12/31/22 | |||||
| 12/31/23 | |||||
| 12/31/24 | |||||
Prepare any necessary adjusting entries relative to depreciation
and amortization on December 31, 2022. (Round answers
to 0 decimal places, e.g. 38,548. If no entry is required, select
"No Entry" for the account titles and enter 0 for the amounts.
Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
December 31, 2022 |
|||
|
(To record the depreciation.) |
|||
|
December 31, 2022 |
|||
|
(To amortize the discount.) |
In: Accounting
On January 1, 2020, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $910,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $770,000, retained earnings of $320,000, and a noncontrolling interest fair value of $390,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing.
During the next two years, Smashing reported the following:
| Net Income | Dividends Declared | Inventory Purchases from Corgan | |||||||
| 2020 | $ | 220,000 | $ | 42,000 | $ | 170,000 | |||
| 2021 | 200,000 | 52,000 | 190,000 | ||||||
Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2020 and 2021, 30 percent of the current year purchases remain in Smashing's inventory.
In: Accounting