Mosl financial advisory providing financial service to the customers.it has 4 advisor who each expect to work 2000 hour per year chargable.and each salary is 90,000 per year.now company employes 2 more Admin staff whose all together(combine salary )is 110,000 per year.other estimated cost for the year is like,(non- salary costs) rent - 30,000,Advertisement - 2,000,client palce travelling cost 10,000,cost of accomodation when vist client 8,000,mobile cost 7,000.

Mosl has allocating costs to each client the chargeable hours spent on each client and charging clent using a single cost rate for all costs based on chargeable hours. same rate using when preparing quatation for the new client.

mosl reviewed their and conclude that they have three diffrent kind of client group.

calculate:

single rate cost used to allocate cost.what will be allocated cost for each 3 client group under the current method?

calculate cost allocated to each client group using the activity based system allocation cost.

You have been promoted to Assistant Director of your Laboratory Department. One of your first assignments is to prepare a recommendation for the replacement of one of your Coulter Counters.

Your Department Director has asked that you work with the Financial staff in preparing this recommendation. Upon contacting the financial staff they tell you that their department has lost a number of analysts and ask if you could help in preparing the analysis since you are a recent graduate of SHU. You tell them that you are well versed in Capital Decision making and would be able to complete the analysis for them and submit to your Department Director.

You decide to prepare a Net Present Value Analysis and begin the discussions with your staff. They emphasize to you the importance of replacing the existing equipment due to quality and safety concerns for the patient. You first plan on completing a Time Line and from the discussion with the staff plan on incorporating the following assumptions in your analysis:

Assumptions to use:

Time Line for 5 years

Initial cost of equipment $3000000

Additional volume from increased efficiency 1000 test per month

Average reimbursement per test is $50

Cost of supplies will be reduced by $2000 per month

The existing equipment is fully depreciated

The only other expense is the depreciation for the new equipment and it is a non cash item

The financial staff tells you to use 5% as your Cost of Capital

What would be the NPV for your analysis?

Problem 10-9 Interest capitalization; specific interest method [LO10-7]

On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019.

Expenditures on the project were as follows:

On January 1, 2018, the company obtained a $3,900,000 construction loan with a 12% interest rate. The loan was outstanding all of 2018 and 2019. The company’s other interest-bearing debt included two long-term notes of $6,000,000 and $9,000,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2018 and 2019. Interest is paid annually on all debt. The company’s fiscal year-end is December 31.

Required:
1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interest method.
2. What is the total cost of the building?
3. Calculate the amount of interest expense that will appear in the 2018 and 2019 income statements.

On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019.

Expenditures on the project were as follows:

On January 1, 2018, the company obtained a $3 million construction loan with a 14% interest rate. The loan was outstanding all of 2018 and 2019. The company’s other interest-bearing debt included two long-term notes of $6,000,000 and $8,000,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2018 and 2019. Interest is paid annually on all debt. The company’s fiscal year-end is December 31. Assume the $3 million loan is not specifically tied to construction of the building.

Required:
1. Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the weighted-average method.
2. What is the total cost of the building?
3. Calculate the amount of interest expense that will appear in the 2018 and 2019 income statements.

The human resources department needs to forecast the number of sexual harassement investigations for the entire company. The data for several months is supplied below. Be careful since the data is listed beginning with the most recent. The forecasting method to be used here is the 4 month weighted moving average adjusting for seasonality where the weights, starting with the most recent time period, are 0.4, 0.3, 0.2, 0.1. Again, you must find the seasonality factors for the data. Please round your forecast to the nearest whole number.

Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2018, the company issues $1,810,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.

Required:

1. If the market interest rate is 7%, the bonds will issue at $1,810,000. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. If the market interest rate is 8%, the bonds will issue at $1,687,008. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. If the market interest rate is 6%, the bonds will issue at $1,944,641. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The accounting department needs to forecast the profit for a subsidiary. The data for several months is supplied below. Be careful since the data is listed beginning with the most recent. The forecasting method to be used here is exponential smoothing with trend accounting for seasonality given a smoothing constant (alpha) of 0.69, a trend smoothing constant (delta) of 0.3, a previous trend amount, seasonally adjusted, of 65, and a previous seasonal forecast of 582. Please round your forecast to the nearest whole number.

Assume that I’M GOING TO ACE THE FINAL Inc. uses the indirect method to determine cash flows. Indicate how each item below is classified on the statement of cash flows as either an operating activity, investing activity, financing activity, or non-cash investing and financing activity and identify whether each item would be Added or Subtracted.

Payment of accounts payable, i.e. a reduction of accounts payable:                            [ Select ]                       ["Operating", "Investing", "Financing", "Non-Cash"]         ;                            [ Select ]                       ["Added", "Subtracted", "N/A"]      

The retirement of bonds payable with cash:                             [ Select ]                       ["Operating", "Investing", "Financing", "Non-Cash"]         ;                            [ Select ]                       ["Added", "Subtracted", "N/A"]      

Interest paid on a note, i.e. a reduction of interest payable:                            [ Select ]                       ["Operating", "Investing", "Financing", "Non-Cash"]         ;                            [ Select ]                       ["Added", "Subtracted", "N/A"]      

Acquisition of a building by issuing common stock:                            [ Select ]                       ["Operating", "Investing", "Financing", "Non-Cash"]         ;                            [ Select ]                       ["Added", "Subtracted", "N/A"]      

Common Stock issued for cash:                            [ Select ]                       ["Operating", "Investing", "Financing", "Non-Cash"]         ;                            [ Select ]                       ["Added", "Subtracted", "N/A"]      

Sale of machinery for cash:                            [ Select ]                       ["Operating", "Investing", "Financing", "Non-Cash"]         ;                            [ Select ]                       ["Added", "Subtracted", "N/A"]      

Issuance of a stock dividend:                            [ Select ]                       ["Operating", "Investing", "Financing", "Non-Cash"]         ;                            [ Select ]                       ["Added", "Subtracted", "N/A"]      

Using supplies that were purchased previously, i.e. a reduction of supplies: