|
Hrubec Products, Inc., operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of pulp follow: |
| Selling price | $20 | |
| Expenses: | ||
| Variable | $11 | |
|
Fixed (based on a capacity of 104,000 tons per year) |
6 | 17 |
| Net operating income | $3 | |
|
Hrubec Products has just acquired a small company that manufactures paper cartons. This company will be treated as a division of Hrubec with full profit responsibility. The newly formed Carton Division is currently purchasing 30,000 tons of pulp per year from a supplier at a cost of $20 per ton, less a 10% purchase discount. Hrubec’s president is anxious for the Carton Division to begin purchasing its pulp from the Pulp Division if an acceptable transfer price can be worked out. |
| Required: | |
|
For (1) and (2) below, assume that the Pulp Division can sell
all of its pulp to outside customers |
| 1-a. | What is the minimum transfer price for Carton Division? |
| 1-b. |
What is the maximum transfer price that Pulp Division is ready to pay? (Round your answer to 2 decimal places.) |
| 1-c. |
Are the managers of the Carton and Pulp Divisions likely to
voluntarily agree to a transfer |
||||
|
| 2. |
If the Pulp Division meets the price that the Carton Division is currently paying to its supplier and sells 30,000 tons of pulp to the Carton Division each year, what will be the effect on the profits of the Pulp Division, the Carton Division, and the company as a whole? |
|
For (3)-(6) below, assume that the Pulp Division is currently selling only 65,000 tons of pulp each year to outside customers at the stated $20 price. |
| 3a. |
What is the minimum transfer price for Pulp Division? |
| 3-b. |
What is the range of transfer price the manager's of both divisions should agree? (Round your answers to 2 decimal places.) |
| 3-c. |
Are the managers of the Carton and Pulp Divisions likely to
voluntarily agree to a transfer |
||||
|
| 4-a. |
Suppose that the Carton Division’s outside supplier drops its
price (net of the purchase discount) |
||||
|
| 4-b. |
How much potential profit will the Pulp Division lose if the $16 price is not met? |
| 5. |
Refer to (4) above. If the Pulp Division refuses to meet the $16 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company as a whole? |
||||
|
| 6. |
Refer to (4) above. Assume that due to inflexible management policies, the Carton Division is required to purchase 30,000 tons of pulp each year from the Pulp Division at $20 per ton. What will be the effect on the profits of the company as a whole? |
In: Accounting
|
Hrubec Products, Inc., operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of pulp follow: |
| Selling price | $22 | |
| Expenses: | ||
| Variable | $13 | |
|
Fixed (based on a capacity of 100,000 tons per year) |
6 | 19 |
| Net operating income | $3 | |
|
Hrubec Products has just acquired a small company that manufactures paper cartons. This company will be treated as a division of Hrubec with full profit responsibility. The newly formed Carton Division is currently purchasing 34,000 tons of pulp per year from a supplier at a cost of $22 per ton, less a 10% purchase discount. Hrubec’s president is anxious for the Carton Division to begin purchasing its pulp from the Pulp Division if an acceptable transfer price can be worked out. |
| Required: | |
|
For (1) and (2) below, assume that the Pulp Division can sell
all of its pulp to outside customers |
| 1-a. | What is the minimum transfer price for Carton Division? |
| 1-b. |
What is the maximum transfer price that Pulp Division is ready to pay? (Round your answer to 2 decimal places.) |
| 1-c. |
Are the managers of the Carton and Pulp Divisions likely to
voluntarily agree to a transfer |
||||
|
| 2. |
If the Pulp Division meets the price that the Carton Division is currently paying to its supplier and sells 34,000 tons of pulp to the Carton Division each year, what will be the effect on the profits of the Pulp Division, the Carton Division, and the company as a whole? |
|
For (3)-(6) below, assume that the Pulp Division is currently selling only 58,000 tons of pulp each year to outside customers at the stated $22 price. |
| 3a. |
What is the minimum transfer price for Pulp Division? |
| 3-b. |
What is the range of transfer price the manager's of both divisions should agree? (Round your answers to 2 decimal places.) |
| 3-c. |
Are the managers of the Carton and Pulp Divisions likely to
voluntarily agree to a transfer |
||||
|
| 4-a. |
Suppose that the Carton Division’s outside supplier drops its
price (net of the purchase discount) |
||||
|
| 4-b. |
How much potential profit will the Pulp Division lose if the $18 price is not met? |
| 5. |
Refer to (4) above. If the Pulp Division refuses to meet the $18 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company as a whole? |
||||
|
| 6. |
Refer to (4) above. Assume that due to inflexible management policies, the Carton Division is required to purchase 34,000 tons of pulp each year from the Pulp Division at $22 per ton. What will be the effect on the profits of the company as a whole? |
In: Accounting
Energy diagram for an atom contains an excited electron at n = 4 level (see below table). Calculate the longest wavelength of light that is emitted.
Answer must be in meters!
| Energy Level (n) | Energy |
| n=1 |
1.13 x 10-27 J |
| n=2 | 2.05 x 10-27 J |
| n=3 | 2.40 x 10-27 J |
| n=4 | 2.99 x 10-27 J |
| n=5 | 3.97 x 10-26 J |
Please thoroughly explain every step and equation as I've been attempting this question for hours and still do not understand.
In: Chemistry
|
Tesla Inc. |
|||||||
|
Consolidated Balance Sheets |
|||||||
|
(in thousands, except per share data) |
31 Dec '17 |
31 Dec '16 |
31 Dec '15 |
31 Dec '14 |
31 Dec '13 |
31 Dec '12 |
31 Dec '11 |
|
Total assets |
28,655 |
22,664 |
8,068 |
5,831 |
2,417 |
1,114 |
713 |
|
Total current assets |
6,571 |
6,260 |
2,782 |
3,180 |
1,266 |
525 |
373 |
|
Cash and cash equivalents |
3,368 |
3,393 |
1,197 |
1,906 |
846 |
202 |
255 |
|
Short-term marketable securities |
-- |
-- |
-- |
-- |
-- |
-- |
25 |
|
Restricted cash and marketable securities |
155 |
106 |
23 |
18 |
3 |
19 |
23 |
|
Accounts receivable |
515 |
499 |
169 |
227 |
49 |
27 |
10 |
|
Inventory |
2,264 |
2,067 |
1,278 |
954 |
340 |
269 |
50 |
|
Prepaid expenses and other current assets |
268 |
194 |
116 |
76 |
28 |
8 |
9 |
|
Operating lease vehicles, net |
4,117 |
3,134 |
1,791 |
767 |
382 |
10 |
12 |
|
Solar energy systems, leased and to be leased, net |
6,347 |
5,920 |
0 |
-- |
-- |
-- |
-- |
|
Property, plant and equipment, net |
10,028 |
5,983 |
3,403 |
1,829 |
738 |
552 |
298 |
|
Intangible assets, net |
422 |
376 |
13 |
-- |
-- |
-- |
-- |
|
Intangible assets, net excluding goodwill |
362 |
||||||
|
Goodwill |
60 |
||||||
|
MyPower customer notes receivable, net of current portion |
457 |
506 |
0 |
-- |
-- |
-- |
-- |
|
Restricted cash |
442 |
268 |
32 |
11 |
6 |
5 |
8 |
|
Other assets, net |
273 |
217 |
47 |
43 |
24 |
22 |
22 |
|
Total liabilities and stockholders equity |
28,655 |
22,664 |
8,068 |
5,831 |
2,417 |
1,114 |
713 |
|
Total liabilities |
23,023 |
16,750 |
6,937 |
4,861 |
1,750 |
989 |
489 |
|
Total current liabilities |
7,675 |
5,827 |
2,811 |
2,107 |
675 |
539 |
191 |
|
Accounts payable and accrued liabilities |
4,122 |
3,070 |
1,339 |
1,047 |
412 |
343 |
88 |
|
Accounts payable |
2,390 |
1,860 |
916 |
778 |
304 |
303 |
56 |
|
Accrued liabilities |
1,731 |
1,210 |
423 |
269 |
108 |
40 |
32 |
|
Deferred revenue |
1,015 |
763 |
424 |
192 |
92 |
2 |
2 |
|
Capital lease obligations |
-- |
-- |
-- |
8 |
4 |
1 |
|
|
Resale value guarantees |
797 |
180 |
137 |
0 |
-- |
-- |
-- |
|
Customer deposits |
854 |
664 |
283 |
258 |
163 |
139 |
92 |
|
Convertible senior notes and other debt |
-- |
-- |
-- |
0 |
0 |
-- |
|
|
Current portion of long-term debt and capital leases |
897 |
1,150 |
628 |
611 |
-- |
51 |
8 |
|
Current portion of long-term debt and capital leases excluding current portion of solar bonds issued to related parties |
797 |
984 |
628 |
611 |
-- |
51 |
8 |
|
Current portion of solar bonds issued to related parties |
100 |
166 |
0 |
-- |
-- |
-- |
-- |
|
Long-term debt and capital leases |
9,418 |
5,970 |
2,021 |
1,819 |
586 |
401 |
268 |
|
Long-term debt and capital leases, net of current portion |
9,416 |
5,860 |
2,021 |
-- |
-- |
401 |
-- |
|
Convertible senior notes and other debt |
3 |
10 |
0 |
-- |
586 |
0 |
-- |
|
Solar bonds issued to related parties, net of current portion |
0 |
99 |
0 |
-- |
-- |
-- |
-- |
|
Common stock warrant liability |
-- |
-- |
-- |
-- |
11 |
9 |
|
|
Capital lease obligations - non current |
-- |
-- |
-- |
-- |
13 |
10 |
3 |
|
Deferred revenue - non current |
1,178 |
852 |
446 |
292 |
181 |
3 |
3 |
|
Capital lease obligations |
|||||||
|
Other long-term liabilities |
4,752 |
4,102 |
1,659 |
643 |
294 |
25 |
15 |
|
Resale value guarantees |
2,309 |
2,210 |
1,294 |
488 |
236 |
0 |
-- |
|
Other long-term liabilities excluding resale value guarantees |
2,443 |
1,891 |
365 |
155 |
58 |
25 |
15 |
|
Redeemable noncontrolling interests in subsidiaries |
398 |
367 |
0 |
-- |
-- |
-- |
-- |
|
Convertible senior notes |
0 |
9 |
47 |
58 |
0 |
-- |
-- |
|
Total stockholders equity |
4.237 |
4,753 |
1,084 |
912 |
667 |
125 |
224 |
|
Preferred stock |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Common stock |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Additional paid-in capital |
9,178 |
7,774 |
3,409 |
2,345 |
1,807 |
1,190 |
893 |
|
Accumulated deficit |
-4,941 |
-3,021 |
-2,326 |
-1,434 |
-1,140 |
-1,066 |
-669 |
|
Accumulated other comprehensive loss |
33 |
-24 |
-4 |
-0 |
-- |
-- |
-0 |
|
Accumulated deficit excluding accumulated other comprehensive loss |
-4,977 |
-2,997 |
-2,322 |
-1,434 |
-- |
-- |
-669 |
|
Noncontrolling interests in subsidiaries |
997 |
785 |
0 |
-- |
-- |
-- |
-- |
|
Tesla, Inc. |
|||||||||
|
Consolidated Statements of Operations |
|||||||||
|
(in thousands, except per share data) |
31 Dec ‘17 |
31 Dec '16 |
31 Dec '15 |
31 Dec '14 |
31 Dec '13 |
31 Dec '12 |
31 Dec '11 |
31 Dec '10 |
|
|
Total revenues |
11,759 |
7,000 |
4,046 |
3,198 |
2,014 |
413 |
204 |
117 |
|
|
Total automotive revenue |
9,641 |
6,351 |
3,741 |
3,007 |
1,922 |
386 |
149 |
97 |
|
|
Automotive |
9,641 |
6,351 |
3,741 |
3,007 |
1,922 |
386 |
149 |
97 |
|
|
Automotive excluding automotive leasing |
8,535 |
5,589 |
3,432 |
2,874 |
-- |
-- |
-- |
-- |
|
|
Automotive leasing |
1,107 |
762 |
309 |
133 |
-- |
-- |
-- |
-- |
|
|
Services and other |
2,117 |
649 |
305 |
191 |
92 |
28 |
56 |
20 |
|
|
Energy generation and storage |
1,116 |
181 |
14 |
4 |
-- |
-- |
-- |
-- |
|
|
Services and other excluding energy generation and other |
1,001 |
468 |
291 |
187 |
-- |
-- |
-- |
-- |
|
|
Total cost of revenues |
-9,536 |
-5,401 |
-3,123 |
-2,317 |
-1,557 |
-383 |
-143 |
-86 |
|
|
Total automotive cost of revenues |
-7,433 |
-4,750 |
-2,823 |
-2,146 |
-1,483 |
-372 |
-115 |
-80 |
|
|
Automotive |
-7,433 |
-4,750 |
-2,823 |
-2,146 |
-1,483 |
-372 |
-115 |
-80 |
|
|
Automotive excluding automotive leasing |
-6,724 |
-4,268 |
-2,640 |
-2,058 |
-- |
-- |
-- |
-- |
|
|
Automotive leasing |
-708 |
-482 |
-183 |
-87 |
-- |
-- |
-- |
-- |
|
|
Services and other |
-2,104 |
-651 |
-299 |
-171 |
-74 |
-12 |
-27 |
-6 |
|
|
Energy generation and storage |
-875 |
-178 |
-12 |
-4 |
-- |
-- |
-- |
-- |
|
|
Services and other excluding energy generation and storage |
-1,229 |
-472 |
-287 |
-167 |
-- |
-- |
-- |
-- |
|
|
Gross profit |
2,222 |
1,599 |
924 |
882 |
456 |
30 |
62 |
31 |
|
|
Total operating expenses |
-3,855 |
-2,267 |
-1,640 |
-1,068 |
-518 |
-424 |
-313 |
-178 |
|
|
Research and development |
-1,378 |
-834 |
-718 |
-465 |
-232 |
-274 |
-209 |
-93 |
|
|
Selling, general and administrative |
-2,477 |
-1,432 |
-922 |
-604 |
-286 |
-150 |
-104 |
-85 |
|
|
Loss from operations |
-1,632 |
-667 |
-717 |
-187 |
-61 |
-394 |
-251 |
-147 |
|
|
Interest income |
20 |
9 |
2 |
1 |
0 |
0 |
0 |
0 |
|
|
Interest expense |
-471 |
-199 |
-119 |
-101 |
-33 |
-0 |
-0 |
-1 |
|
|
Other income / expense, net |
-125 |
111 |
-42 |
2 |
23 |
-2 |
-3 |
-7 |
|
|
Loss / income before income taxes |
-2,209 |
-746 |
-876 |
-285 |
-71 |
-396 |
-254 |
-154 |
|
|
Provision for income taxes |
-32 |
-27 |
-13 |
-9 |
-3 |
-0 |
-0 |
-0 |
|
|
Net loss / income |
-2,241 |
-773 |
-889 |
-294 |
-74 |
-396 |
-254 |
-154 |
|
|
Net income / loss attributable to noncontrolling interests and redeemable noncontrolling interest |
279 |
98 |
0 |
0 |
-- |
-- |
-- |
-- |
|
|
Net income / loss attributable to common stockholders |
-1,961 |
-675 |
-889 |
-294 |
-74 |
-396 |
-254 |
-154 |
|
|
Per share |
|||||||||
|
Basic |
-11.83 |
-4.68 |
-6.93 |
-2.36 |
-0.62 |
-3.69 |
-2.53 |
-3.04 |
|
|
Diluted |
-11.83 |
-4.68 |
-6.93 |
-2.36 |
-0.62 |
-3.69 |
-2.53 |
-3.04 |
|
|
Weighted average shares |
|||||||||
|
Basic |
165.8 |
144.2 |
128.2 |
124.5 |
119.4 |
107.3 |
100.4 |
50.7 |
|
|
Diluted |
165.8 |
144.2 |
128.2 |
124.5 |
119.4 |
107.3 |
100.4 |
50.7 |
|
Income statement:
Did Sales of Tesla increase (decrease) in the last 3 years of operations? Provide specific amounts and percentage.
Did Net Income of Tesla increase (decrease) in the last 3 years of operations? Provide specific amounts and percentage.
In your opinion, what business activities were responsible for sales growth (decline)?
Do income statements of your company have Cost of Goods Sold? (Hint: Often companies use different terminology when they report COGS, for example Cost of Revenues).
What percentage of Sales does COGS constitute?
Did this percentage increase (decrease) in the last three years of the operations?
Why do you think this happen?
List three other major expenses (after COGS) of the company.
What percentage of sales do they constitute?
Did these percentage increase (decrease) in the last three years of operations?
In your opinion, what business activities were responsible for observed dynamics?
Do you think this was beneficial (detrimental) for your business?
In: Accounting
You are setting up a corporate flight department for an oil exploration company that will be operating its business jets globally to transport executives, employees, guests, and customers at the company's expense in support of its work. The company is purchasing 3 new business jets, using secured financing from Global Bank Corp. The company's initial areas of operation will focus on North Africa, the Middle East, and Indonesia.
Describe in detail the aircraft insurance you will purchase for the operation, explaining your reasoning clearly.
In: Operations Management
Using C++
There are number of cable company in southern California which offer number of services
for customers. This company have two types of customers:
Residential and business. There are two rates for calculating a cable bill: one for Residential customers and one for business customers.
For residential customers the following rates apply:
For business customers the following rates apply:
Input:
The customer’s account number,
Customer code
Number of premium channels
And in case of business customers, number of basic service connections
What to deliver (output) Customers’ account number and the billing amount
Run your program for the given data:
Enter customer code: R or r (Residential) or B or b (Business) B
Enter number of service connections 16
Enter number of premium channels 8
Display total billing amount:
Run for residential customers:
R
Test your program for 12 premium channels.
flow chart, pseudo code are required for every projects and activities.
In: Computer Science
Based on the following, Please answer the following, Thanks!
Imagine you are a human resources professional working at a prominent global company. There have been recent concerns regarding how the organization has been conducting business in the global market, and it has tasked you with identifying problems and recommending solutions. You will analyze information from the case study Nimble Storage: Scaling Talent Strategy Amidst Hyper-Growth for how the organization’s business practices have aligned with more geocentric perspectives, identifying potential gaps in its current practices. You will then make a series of recommendations directed to leadership for addressing identified gaps and ensuring a successful transition regarding your proposed changes.
Introduction:
The Nimble Storage is a hybrid growing data storage System Company situated in Silicon Valley. The CEO of the company is Suresh Vasudevan, and the Vice President of the HR department is Paul Whitney. The company's purpose of developing the hybrid system, which is used in flash memory (It is a storage memory that leads to rapid access to random data) and hard disk to increase the performance of the company at the competitive prices offered to the customers in order to give the efficient and the flash storage platform.
The case analyzes the past performance of the company and the talented hiring of the personnel by Whitney, where the founder and CEO of the company plan to transfer the storage world into the hybrid storage system and wanted to achieve the goal to make a billion dollar company within three years. For this purpose, Suresh Vasudevan aimed to focus on both short term and long term key people initiative to measure the results. The company decided to launch the new leadership program named "LEAD" for the sustainable future growth of the company and also effects on the people initiatives to go forward in future.
The objective of the case is to make quantitative and qualitative analysis by identifying the issues, providing solutions to the problems, and providing an alternative for the growth and evaluating and choosing the best alternative and provide an implementation plan.
Define the issues/Problem statement:
The company has finished its second full fiscal year of storage on January 31, 2013, which provided the great opportunity for reproducing its core values, reviewed the success over the last years and also the strong personnel who made it possible. The company always aims to deliver the world’s most efficient way of data storage by target the broad range of enterprise applications with the goal of optimizing in many factors such as performance efficiency, capacity efficiency, data protection and dramatic simplicity.
Problems/Issues and its solutions:
In order to stabilize the performance, the company faced many potential problems and issues in producing the product and also HR-related issues faced by Whitney.
The first problem was related to the health of the customers' network that led to the unusual high temperature in the data center. The company is now organizing the data center in order to convince the customers to the belief that will help to solve the range of problems in one single platform.
The second problem was the business team was not effective due to lack of motivation and employee turnover, it as one of the biggest challenge that company was facing in last nine months. So, the business wanted to improve its values by making the business by conducting two ways process with the two-sided as the same coin. It would result in the powerful feedback and result oriented of employees, which will result in employee retention and run the business with the order of framework and program perspective.
The company was facing the hiring issue as they wanted to maintain its culture and status quo, the company needed to change the paid time off/personal time off PTO policy in fifteen days, the company wanted to increase the length of services, and they tested the idea but not preferred by the company. Therefore, the employees wanted a favor, and the company made the PTO flexible and unlimited sick leaves and holidays for employee retention.
Suresh Vasudevan had talked about the cultural openness and transparency in sharing the information to the tons of people via any social website, such as Facebook and Google. The company estimates that the openness will be challenging to measure as the hidden information would be exposed publicly.
Questions;
Based on the following, Please answer the following, Thanks!
Imagine you are a human resources professional working at a prominent global company. There have been recent concerns regarding how the organization has been conducting business in the global market, and it has tasked you with identifying problems and recommending solutions. You will analyze information from the case study Nimble Storage: Scaling Talent Strategy Amidst Hyper-Growth for how the organization’s business practices have aligned with more geocentric perspectives, identifying potential gaps in its current practices. You will then make a series of recommendations directed to leadership for addressing identified gaps and ensuring a successful transition regarding your proposed changes.
Introduction:
The Nimble Storage is a hybrid growing data storage System Company situated in Silicon Valley. The CEO of the company is Suresh Vasudevan, and the Vice President of the HR department is Paul Whitney. The company's purpose of developing the hybrid system, which is used in flash memory (It is a storage memory that leads to rapid access to random data) and hard disk to increase the performance of the company at the competitive prices offered to the customers in order to give the efficient and the flash storage platform.
The case analyzes the past performance of the company and the talented hiring of the personnel by Whitney, where the founder and CEO of the company plan to transfer the storage world into the hybrid storage system and wanted to achieve the goal to make a billion dollar company within three years. For this purpose, Suresh Vasudevan aimed to focus on both short term and long term key people initiative to measure the results. The company decided to launch the new leadership program named "LEAD" for the sustainable future growth of the company and also effects on the people initiatives to go forward in future.
The objective of the case is to make quantitative and qualitative analysis by identifying the issues, providing solutions to the problems, and providing an alternative for the growth and evaluating and choosing the best alternative and provide an implementation plan.
Define the issues/Problem statement:
The company has finished its second full fiscal year of storage on January 31, 2013, which provided the great opportunity for reproducing its core values, reviewed the success over the last years and also the strong personnel who made it possible. The company always aims to deliver the world’s most efficient way of data storage by target the broad range of enterprise applications with the goal of optimizing in many factors such as performance efficiency, capacity efficiency, data protection and dramatic simplicity.
Problems/Issues and its solutions:
In order to stabilize the performance, the company faced many potential problems and issues in producing the product and also HR-related issues faced by Whitney.
The first problem was related to the health of the customers' network that led to the unusual high temperature in the data center. The company is now organizing the data center in order to convince the customers to the belief that will help to solve the range of problems in one single platform.
The second problem was the business team was not effective due to lack of motivation and employee turnover, it as one of the biggest challenge that company was facing in last nine months. So, the business wanted to improve its values by making the business by conducting two ways process with the two-sided as the same coin. It would result in the powerful feedback and result oriented of employees, which will result in employee retention and run the business with the order of framework and program perspective.
The company was facing the hiring issue as they wanted to maintain its culture and status quo, the company needed to change the paid time off/personal time off PTO policy in fifteen days, the company wanted to increase the length of services, and they tested the idea but not preferred by the company. Therefore, the employees wanted a favor, and the company made the PTO flexible and unlimited sick leaves and holidays for employee retention.
Suresh Vasudevan had talked about the cultural openness and transparency in sharing the information to the tons of people via any social website, such as Facebook and Google. The company estimates that the openness will be challenging to measure as the hidden information would be exposed publicly.
Questions;
G. Determine critical success factors for the organization for transitioning from an ethnocentric approach to a geocentric focus and achieving potential gains. What critical success factors must be considered when making such a transition? How do those critical success factors help achieve those potential gains?
H. Analyze global political trends for potential risk events regarding human resource management that the organization might have to consider in the future.
In: Operations Management
Tony Rich Inc. reported income from continuing operations before taxes during 2008 of $790,000. Additional transactions occurring in 2008 but not considered in the $790,000 are as follows.
1. The corporation experienced an uninsured flood loss (extraordinary) in the amount of $80,000 during the year. The tax rate on this item is 46%.
2. At the beginning of 2006, the corporation purchased a machine for $54,000 (salvage value of $9,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2006, 2007, and 2008 but failed to deduct the salvage value in computing the depreciation base.
3. Sale of securities held as a part of its portfolio resulted in a loss of $57,000 (pretax).
4. When its president died, the corporation realized $110,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $46,000 (the gain is nontaxable).
5. The corporation disposed of its recreational division at a loss of $115,000 before taxes. Assume that this transaction meets the criteria for discontinued operations.
6. The corporation decided to change its method of inventory pricing from average cost to the FIFO method. The effect of this change on prior years is to increase 2006 income by $60,000 and decrease 2007 income by $20,000 before taxes. The FIFO method has been used for 2008. The tax rate on these items is 40%.
Instructions
Prepare an income statement for the year 2008 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement. Common shares outstanding for the year are 80,000 shares. (Assume a tax rate of 30% on all items, unless indicated otherwise.)
In: Accounting
Tony Rich Inc. reported income from continuing operations before taxes during 2008 of $790,000. Additional transactions occurring in 2008 but not considered in the $790,000 are as follows.
1. The corporation experienced an uninsured flood loss (extraordinary) in the amount of $80,000 during the year. The tax rate on this item is 46%.
2. At the beginning of 2006, the corporation purchased a machine for $54,000 (salvage value of $9,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2006, 2007, and 2008 but failed to deduct the salvage value in computing the depreciation base.
3. Sale of securities held as a part of its portfolio resulted in a loss of $57,000 (pretax).
4. When its president died, the corporation realized $110,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $46,000 (the gain is nontaxable).
5. The corporation disposed of its recreational division at a loss of $115,000 before taxes. Assume that this transaction meets the criteria for discontinued operations.
6. The corporation decided to change its method of inventory pricing from average cost to the FIFO method. The effect of this change on prior years is to increase 2006 income by $60,000 and decrease 2007 income by $20,000 before taxes. The FIFO method has been used for 2008. The tax rate on these items is 40%.
Instructions
Prepare an income statement for the year 2008 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement. Common shares outstanding for the year are 80,000 shares. (Assume a tax rate of 30% on all items, unless indicated otherwise.)
In: Accounting
On January 1, 2020, Marigold Company purchased 12% bonds having a maturity value of $270,000, for $290,470.00. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Marigold Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.
1.Prepare the journal entry at the date of the bond purchase.
2.Prepare a bond amortization schedule.
3.Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020.
4.Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021.
In: Accounting