Part 1: If you were sponsoring a project, would you want to be updated in terms of cost and schedule variance or cost and performance indexes? Why?
Part 2: Give two examples of why a project might be terminated early for cause and two examples of why a project might be terminated early for convenience.
In: Nursing
On May 1, 2013, Peat Co. purchased all of Sorbet Ltd.’s issued common shares for $630,000. At the acquisition date, Sorbet’s financial statements included the following balances:
Share capital $400,000
Retained earnings 210,000
Goodwill 10,000
At the acquisition date, Sorbet’s identifiable assets and liabilities were equal to their fair values, except in the case of inventory that had a book value of $80,000 and a fair value of $86,000, and equipment that had a book value of $360,000 and a fair value of $370,000. The equipment was originally purchased for $480,000. At the acquisition date, the equipment had a remaining useful life of 5 years and was amortized using the straight-line method. All the inventory that Sorbet had on hand at the acquisition date was sold by October 2013. Sorbet’s goodwill has not shown indications of impairment. Both Peat and Sorbet have April 30th year-ends and did not have any intercompany sales with each other.
The financial statements for Peat and Sorbet at April 30, 2015 are presented on the following pages.
Statement of Financial Position
April 30, 2015
Peat Co. Sorbet Ltd.
Assets:
Current assets:
Cash $ 52,000 $ 161,600
Accounts receivable 100,000 80,000
Inventory 120,000 170,000
272,000 411,600
Non-current assets:
Equipment, net 558,000 368,000
Furniture and fixtures, net 51,000 51,600
Investment in Sorbet Ltd. 630,000 -
Goodwill ___-___ 10,000
1,239,000 429,600
Total assets $ 1,511,000 $ 841,200
Liabilities and shareholders’ equity:
Current liabilities:
Accounts payable $ 69,000 $ 19,600
Non-current liabilities:
Loan payable 22,000 32,000
Total liabilities 91,000 51,600
Shareholders’ equity:
Share capital 1,000,000 400,000
Retained earnings 420,000 389,600
1,420,000 789,600
Total liabilities and shareholders’ equity $ 1,511,000 $ 841,200
Condensed Statement of Income
For the year ended April 30, 2015
Peat Co. Sorbet Ltd.
Sales $ 250,000 $ 180,000
Expenses 170,000 130,000
Net income $ 80,000 $ 50,000
Statement of Changes in Equity
For the year ended April 30, 2015
Peat Co. Sorbet Ltd.
Share capital $ 1,000,000 $ 400,000
Retained earnings, May 1, 2014 340,000 339.600
Net income 80,000 50,000
Retained earnings, April 30, 2015 420,000 389,600
Total shareholders’ equity $ 1,420,000 $ 789,600
Required:
Prepare Peat’s consolidated financial statements for April 30, 2015. Ignore income taxes.
In: Accounting
1. Explain one of the causes of the American Revolution, and its impact on one foreign nation.
2. Analyze how the U.S. Constitution overcame the weaknesses of the Articles of Confederation.
3. Explain the impact of the Mexican War on American expansionism.
In: Economics
Some historians argue that the Mexican American War of 1846-1848 led directly to the American Civil War of 1861-1865. In a well written and thorough essay, I would like you to lay out the reasons for this argument.
In: Economics
Which of the following transactions does not affect the total assets of Joseph & Co?
| a. |
A bill is received for the telephone service used by Joseph & Co. during the past month. |
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| b. |
Cash dividends are paid by Joseph & Co. |
|
| c. |
Customers are billed for sales made on credit by Joseph & Co. |
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| d. |
A new computer is purchased on credit by Joseph & Co. |
In: Accounting
4. (20) A stoichiometric mixture of CO and O2 enters a reactor at 100 oC. CO2, CO and O2 leave the reactor in chemical equilibrium at 1527 oC and 2 atm. Calculate the partial pressures of CO2, CO and O2 in the products.
CO + ½ O2 = CO2: ΔGo373K = -250.8 kJ
CO + ½ O2 = CO2: ΔGo1800K = -127.4 kJ
In: Other
Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows:
| October | November | December | |||||||
| Cash sales | $ | 120,000 | $ | 99,000 | $ | 97,000 | |||
| Credit sales | 120,000 | 118,800 | 106,700 | ||||||
| Total | $ | 240,000 | $ | 217,800 | $ | 203,700 | |||
Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale; the remaining 40% are collected in the month following the month of sale. Customers are granted a 1.5% discount for payment within 10 days of billing. Approximately 75% of collectible credit sales take advantage of the cash discount.
Inventory purchases each month are 100% of the cost of the following month’s projected sales. (The gross profit rate for Timpco is approximately 30%.) All merchandise purchases are made on credit, with 20% paid in the month of purchase and the remainder paid in the following month. No cash discounts for early payment are in effect.
Required:
1. Calculate the budgeted total cash receipts for November and December. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)
2. Calculate budgeted cash disbursements for November and December (budgeted total sales for January of the coming year equals $193,000).
In: Accounting
impco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows:
| October | November | December | |||||||
| Cash sales | $ | 140,000 | $ | 115,000 | $ | 105,000 | |||
| Credit sales | 140,000 | 138,000 | 115,500 | ||||||
| Total | $ | 280,000 | $ | 253,000 | $ | 220,500 | |||
Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale; the remaining 40% are collected in the month following the month of sale. Customers are granted a 1.5% discount for payment within 10 days of billing. Approximately 75% of collectible credit sales take advantage of the cash discount.
Inventory purchases each month are 100% of the cost of the following month’s projected sales. (The gross profit rate for Timpco is approximately 30%.) All merchandise purchases are made on credit, with 20% paid in the month of purchase and the remainder paid in the following month. No cash discounts for early payment are in effect.
Required:
1. Calculate the budgeted total cash receipts for November and December. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)
2. Calculate budgeted cash disbursements for November and December (budgeted total sales for January of the coming year equals $205,000).
In: Accounting
Early in 2014, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2014 and was completed on December 31, 2014. Dobbs made the following payments to Kiner, Inc. during 2014:
Date Payment
June 1, 2014 $6,000,000
August 31, 2014 9,000,000
December 31, 2014 7,500,000
In order to help finance the construction, Dobbs issued the following during 2014:
1. $5,000,000 of 10-year, 9% bonds payable, issued at par on May 31, 2014, with interest payable annually on May 31.
2. 1,000,000 shares of no-par common stock, issued at $10 per share on October 1, 2014.
In addition to the 9% bonds payable, the only debt outstanding during 2014 was a $1,250,000, 12% note payable dated January 1, 2010 and due January 1, 2020, with interest payable annually on January 1.
Instructions
Compute the amounts of each of the following:
1. Weighted-average accumulated expenditures qualifying for capitalization of interest cost.
2. Avoidable interest incurred during 2014.
3. Total amount of interest cost to be capitalized during 2014.
In: Accounting
Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows: October November December Cash sales $ 105,000 $ 87,000 $ 91,000 Credit sales 105,000 104,400 100,100 Total $ 210,000 $ 191,400 $ 191,100 Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale; the remaining 40% are collected in the month following the month of sale. Customers are granted a 1.5% discount for payment within 10 days of billing. Approximately 75% of collectible credit sales take advantage of the cash discount. Inventory purchases each month are 100% of the cost of the following month’s projected sales. (The gross profit rate for Timpco is approximately 30%.) All merchandise purchases are made on credit, with 20% paid in the month of purchase and the remainder paid in the following month. No cash discounts for early payment are in effect. Required: 1. Calculate the budgeted total cash receipts for November and December. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) 2. Calculate budgeted cash disbursements for November and December (budgeted total sales for January of the coming year equals $184,000).
In: Accounting