Exercise 6-21B Complete the accounting cycle using inventory transactions (LO6-2, 6-3, 6-5, 6-6, 6-7)

[The following information applies to the questions displayed below.]

On January 1, Year 1, the general ledger of a company includes the following account balances:

The $40,000 beginning balance of inventory consists of 400 units, each costing $100. During January Year 1, the company had the following inventory transactions:

The following information is available on January 31, Year 1.

1. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
2. The company estimates future uncollectible accounts. The company determines $5,000 of accounts receivable on January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
3. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.
4. Accrued income taxes at the end of January are $13,300.

Exercise 6-21B Part 3

a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
b. At the end of January, $5,000 of accounts receivable are past due, and the company estimates that 35% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected.
c. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.
d. Accrued income taxes at the end of January are $13,300.
  

3. Prepare an adjusted trial balance as of January 31, Year 1.

adjusted trial balance

income statement

balance sheet

inventory turnover ratio

gross profit ration is %

A consumer advocacy group received a tip that an air conditioning company has been charging female customers more than male customers. The group's statistical expert decides examine this question at the α=0.10α=0.10 level of significance, by looking at the difference in mean charges between a random sample of female customers and a random sample of male customers. Let μFμF represent the average charges for female customers and μMμM represent the average charges for male customers.(Round your results to three decimal places)

Which would be correct hypotheses for this test?

• H0:μF−μM=0    H1:μF−μM≠0
• H0:μF−μM= 0 :H1:μF−μM<0
• H0:μF−μM=0 H1:μF−μM>0
• HO:μF−μM>0 H1:μF−μM<0

If we are going to test this using a confidence interval, which confidence interval should we construct?

• 80%
• 60%
• 90%
• 95%

A random sample of 33 female customers were charged an average of $915, with a standard deviation of $8. A random sample of 52 male customers were charged an average of $903, with a standard deviation of $17. Construct the confidence interval:

_____________ < μF−μ  < ____________________

Which is the correct result:

• 0 is contained in the confidence interval, so we Do not Reject the Null Hypothesis
• 0 is not contained in the confidence interval, so we Reject the Null Hypothesis
• 0 is not contained in the confidence interval, so we Do not Reject the Null Hypothesis
• 0 is contained in the confidence interval, so we Reject the Null Hypothesis

Which would be the appropriate conclusion?

• There is significant evidence to suggest that the company is charging its female customers more than its male customers.
• There is not significant evidence to suggest that the company is charging its female customers more than its male customers.

A consumer advocacy group received a tip that an air conditioning company has been charging female customers more than male customers. The group's statistical expert decides examine this question at the α=0.10α=0.10 level of significance, by looking at the difference in mean charges between a random sample of female customers and a random sample of male customers. Let μFμF represent the average charges for female customers and μMμM represent the average charges for male customers.(Round your results to three decimal places)

Which would be correct hypotheses for this test?

• H0:μF−μM=0    H1:μF−μM≠0
• H0:μF−μM= 0 :H1:μF−μM<0
• H0:μF−μM=0 H1:μF−μM>0
• HO:μF−μM>0 H1:μF−μM<0

If we are going to test this using a confidence interval, which confidence interval should we construct?

• 80%
• 60%
• 90%
• 95%

A random sample of 33 female customers were charged an average of $915, with a standard deviation of $8. A random sample of 52 male customers were charged an average of $903, with a standard deviation of $17. Construct the confidence interval:

_____________ < μF−μ  < ____________________

Which is the correct result:

• 0 is contained in the confidence interval, so we Do not Reject the Null Hypothesis
• 0 is not contained in the confidence interval, so we Reject the Null Hypothesis
• 0 is not contained in the confidence interval, so we Do not Reject the Null Hypothesis
• 0 is contained in the confidence interval, so we Reject the Null Hypothesis

Which would be the appropriate conclusion?

• There is significant evidence to suggest that the company is charging its female customers more than its male customers.
• There is not significant evidence to suggest that the company is charging its female customers more than its male customers.

• For the company Tesla I need a Company Description - including brief company history and background, current customers
• For marketing class

32) Which of the following statements are TRUE regarding the impact of a dividend issuance compared to a share repurchase on the three financial statements?

a) Both a dividend issuance and a share repurchase will change the company’s Earnings per Share (EPS), since dividends affect earnings and repurchased shares affect the company’s share count.

b) A share repurchase is better for both the company and shareholders because no taxes are paid on repurchased shares, whereas taxes are always paid on dividends issued.

c) Both a share repurchase and a dividend issuance will show up within the Cash Flow from Financing section of the Cash Flow Statement.

d) Both a dividend issuance and a share repurchase will reduce the Equity line item on a company’s Balance Sheet.

e) While a share repurchase reduces the Treasury Stock line item within Equity, a dividend issuance reduces Accumulated Other Comprehensive Income (AOCI), since AOCI represents the company’s saved-up, after-tax earnings.

42) Suppose that you have built a PP&E Schedule.. Which of the following conditions might you check to verify that you are using reasonable assumptions?

a) CapEx as a % of Revenue should almost always be rising over time for a high-growth company like this one.

b) The CapEx annual growth rate should be in-line with historical growth rates, perhaps declining modestly each year as the company grows.

c) Particularly if a company is growing quickly, CapEx as a % of Revenue will often exceed Depreciation as a % of Revenue.

d) In the long-term, Total CapEx should always equal Total Depreciation because the company’s Net PP&E balance should not be changing.

e) CapEx as a % of Revenue should be falling over time because companies have lower re-investment needs as their businesses grow.

47) Suppose that you are analyzing a high-growth software company, such as the one we have been using in these examples. This company, despite its high growth, also has high margins and is generating significant Free Cash Flow.

Which of the following answer choices represent the BEST ways for this company to spend its excess Free Cash Flow if it wants to maximize its valuation?

a) Return capital to investors in the form of dividends or share repurchases, as doing so will likely boost the value of the company’s shares.

b) Substantially increase spending on Working Capital or Capital Expenditures, as both items are essential for software companies to grow.

c) Spend more on sales & marketing to win bigger customers and boost the average customer value.

d) Acquire related companies if the market is highly fragmented and there are target companies with reasonable valuations.

Roberds Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:

In March, the school budgeted for 1,770 students and 74 courses. The school's income statement showing the actual results for the month appears below:

Required:

Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for March. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

The following transactions occur for the Wolfpack Shoe Company during the month of June:

1. Provide services to customers for $24,000 and receive cash.

2. Purchase office supplies on account for $14,000.

3. Pay $5,800 in salaries to employees for work performed during the month.

3. Post the transactions to T-accounts. Assume the opening balance in each of the accounts is zero.
  

[The following information applies to the questions displayed below.] O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 29 Direct labor $ 18 Variable manufacturing overhead $ 4 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 560,000 Fixed selling and administrative expenses $ 180,000 During its first year of operations, O’Brien produced 96,000 units and sold 77,000 units. During its second year of operations, it produced 82,000 units and sold 96,000 units. In its third year, O’Brien produced 87,000 units and sold 82,000 units. The selling price of the company’s product is $74 per unit. 3. Assume the company uses absorption costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first): a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3.

A grocery store manager did a study to look at the relationship between the amount of time (in minutes) customers spend in the store and the amount of money (in dollars) they spend. The results of the survey are shown below. Time 14 12 27 14 12 11 11 30 22 Money 65 24 79 61 48 32 55 114 77

y=6.95+3.22x

Interpret the y-intercept in the context of the question:

• The average amount of money spent is predicted to be $6.95.
• If a customer spends no time at the store, then that customer will spend $6.95.
• The y-intercept has no practical meaning for this study. <<<<<<<Correct Answer>>>>>
• The best prediction for a customer who doesn't spend any time at the store is that the customer will spend $6.95.

I know the answer but do not understand the process, please explain

On January 1, 2021, the general ledger of Big Blast Fireworks included the following account balances:

The $47,000 beginning balance of inventory consists of 470 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions:

The following information is available on January 31, 2021.

1. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
2. At the end of January, $5,700 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected.
3. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.
4. Accrued income taxes at the end of January are $14,000.

* Question (1): I have done most of the journal entries but I need help with:

1- Journal entry on 19 Jan for COGS and Inventory.

2- Journal entry on 27 Jan for allowance for uncollectible account and accounts receivable.

3- Journal entry on 31 Jan for COGS and Inventory.

4- Journal entry on 31 Jan for Bad debt expense and allowance for uncollectible account.

* Question (2): Using the information from the requirements above, complete the 'Analysis'. (Enter your Inventory Turnover ratio and gross profit ratio value in one decimal place.)