Georgia, Inc. bought 30% of Carolina Company on January 1, 2016 for $225,000. The equity method was used. No amortization was required. In 2016, Carolina shipped to Georgia merchandise with a cost of $12,000 and a selling price of $15,600. One-third of the merchandise remained in Georgia's inventory at year-end and was sold in 2017. In 2017, Carolina received merchandise from Georgia, who recorded a gross profit of $18,000 on the sale. One-fourth of the merchandise remainded in ending inventory, Carolina reported net income of $50,000 in 2016 and $62,000 in 2017. Dividends of $8,000 were paid to Georgia each year. Prepare all equity method entries for 2016 and 2017.

You purchased XYZ stock at the closing price on December 31, 2015, and sold it after the dividend had been paid at the closing price on January 26, 2016. Given the following Price and Dividend data for XYZ, your dividend yield for this period is closest to ______________ and your capital gains rate (yield) for this period is closest to _______________________.

On July 1, 2012, Okin Company purchased equipment for $280,000; the estimated useful life was 10 years and the expected salvage value was $25,000. Straight-line depreciation is used. On July 1, 2016, economic factors cause the market value of the equipment to decrease to $90,000. On this date, Okin evaluates if the equipment is impaired and estimates future cash flows relating to the use and disposal of the equipment to be $125,000.

a. Is the equipment impaired at July 1, 2016?

b. If the equipment is impaired at July 1, 2016, calculate the amount of the impairment loss.
Impairment loss = $

c. If the equipment is impaired at July 1, 2016, prepare the journal entry to record the impairment loss.

During 2017​, Grant receives a $45,000 salary and has no deductions for AGI. In 2016​, Grant had a $5,500 STCL available and no other capital losses or capital gains. Consider the following sales. An automobile purchased in 2012 for $11,200 and held for personal use is sold for $8,000. On April​ 10, 2017​, stock held for investment is sold for $32,000. The stock was acquired on November​ 20, 2016​, for $16,000. Salary? Net short-term capital gain (loss)? Net long-term capital gain (loss)? and total AGI? Assume that the 2016 STCL of $5,500 is before Grant has taken any capital loss deduction in 2016.

Simon Company owns 40% of the outstanding voting common stock of Nixon Corp. and has the ability to significantly influence Nixon Corp.’s operations. During 2016 Simon had sold inventory costing $35,000 to Nixon for $50,000. All but 25% of that inventory had been sold to outsiders by Nixon Corp. by then end of fiscal year 2016. What amount of unrealized intra-entity inventory profit should be deferred by Simon Company in 2016? What is the journal entry that Simon company would make to record this deferral of profit? What journal entry does Simon Company make when the remaining inventory is sold in 2016?

Aiello, Inc. had the following inventory in fiscal 2016.

Beginning Inventory, January 1, 2016: 130 units @ $15.00
Purchase 200 units @ $18.00
Purchase 50 units @ $13.50
Purchase 110 units @ $15.75

Total units sold during the month is 370.

a) Compute the company’s cost of goods sold and ending inventory for fiscal 2016 assuming the company used FIFO

b) Compute the company’s cost of goods sold and ending inventory for fiscal 2016 assuming the company used LIFO methods of accounting for inventory

c) Calculate the LIFO reserve that would be reported in the company's books if using LIFO.

On January 1, 2016, Learned, Inc., issued $70 million face amount of 20-year, 14% stated rate bonds when market interest rates were 16%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2035. Assuming Learned, Inc. uses the effective (compound) interest method, what would be the total interest expense for 2016? Hint: you will need to calculate interest expense as of June 30, 2016 and then December 31, 2016 to determine the total interest expense for the year. Be sure to round your answer to the nearest dollar.

Financial Analysis Project

Requirements:

You will use the Financial Statements for

Coke

and

Pepsi

as provided on their websites to

complete the following analysis:

1.

Calculate the current ratio and quick ratio for both companies for 2016 and 2017. Write

a paragraph describing what these ratios indicate about the liquidity of Pepsi and Coke

in 2016 compared to 2017. Write a paragraph describing what these ratios indicate

about the liquidity of Pepsi compared to Coke for both years. Which company seems to

be more liquid? What are the advantages and disadvantages of liquidity?

2.

Calculate the accounts receivable turnover and days sales in receivables for both

companies for 2016 and 2017. Write a paragraph comparing 2016 with 2017 and Coke

with Pepsi using these two ratios to indicate the effectiveness of their accounts

receivable collection. Which of the two seems to be doing a better job with receivables?

How does this collection process affect the overall success of the company.

3.

Calculate inventory turnover and days in inventory for both companies for 2016 and

2017. Write a paragraph comparing 2016 with 2017 and Coke with Pepsi using these

two ratios to indicate how they manage their inventory. Which one of the two companies

has a better approach to inventory management? Why? What are the problems that

come with poor inventory management?

4.

Calculate the gross margin, profit margin and return on investment for both companies

for 2016 and 2017. Explain in a paragraph what these ratios show about each

company’s profitability compared to the year before and compared to each other.

Indicate which company shows the best prospects for future profits and explain in detail

why you think the ratios support your observation.

5.

Prepare a vertical analysis or same size income statement and balance sheet for Pepsi

and Coca Cola for 2016 and 2017. Write a paragraph highlighting what you learn from

the percentages of sales or total assets calculated from the financial statements. Write

also about the comparison between 2016 and 2017 and between Coke and Pepsi.

6.

Compare Pepsi’s income statement for 2016 with their income statement for 2017 –

calculate the change in dollars and percent for all of the revenues and expenses. What

do the changes indicate about Pepsi’s success in 2016 relative to 2017? Do the same

comparison for Coke’s income statement. What do the changes indicate about Coke’s

improvement or lack thereof between 2016 and 2017? With this comparison of both

companies over time now compare Coke vs. Pepsi and explain why one company is

better than the other.

7.

Based on all of your calculations and observations described above, make a

recommendation as to which company would be a better investment. Give the reasons

for your conclusion.

Design one simple experiment to verify graphene sheet is a good electric conductor.

What is the subject's importance of picket fence free fall experiment to physics and the world?