Question 4: 10 marks, 10% of the subject. Use complete sentences. In your work as an accountant you advise a client, Avon Pty. Ltd. (Avon), on various matters. Avon entered into a $500,000 one year contract in June 2016 with Central Queensland University (a registered Research Service Provider) to undertake research and development for Avon. The contract was to run from July 2016 to June 2017. Avon wants your advice about tax offsets and how this expense could be treated by the ATO in the 2016-17 tax year.

Computing Straight-Line and Double-Declining-Balance Depreciation
On January 2, 2016, Fischer Company purchases a machine that manufactures a part for one of its key products. The machine cost $529,200 and is estimated to have a useful life of six years, with an expected salvage value of $45,000.

Compute depreciation expense for 2016 and 2017 for the following depreciation methods.
a. Straight-line.
b. Double-declining balance.

need help solving this problem thank you

INSTRUCTIONS: Answer the subsequent set of questions to solve the "Goal" of this problem. We recommend you write out your answer to compare to the particular questions as you go along.

SETUP: As shown in the figure, a box of mass m is attached to a light string that is wrapped around a cylindrical spool of radius R and mass M. The spool is suspended from the ceiling. Then, the box is released from rest a distance h above the floor.

FIGURE:

GOAL: Determine an expression for the amount of time it takes for the box to reach the floor
PART A - Totalinitial energy

We will start with energy conservation to solve this problem. Take the floor as our vertical "zero".

After removing all components that either cancel or equal "0", what does the total INITIAL energy look like?

(A1) K i only

(A2) K r o t i only

(A3) U g r a v i only

(A4) W o t h e ronly

(A5) K i + K r o t i

(A6) K i + K r o t i + U g r a v i

(A7) K i + K r o t i + U g r a v i + W o t h e r

(A8) K i + U g r a v i

Group of answer choices

A1

A2

A3

A4

A5

A6

A7

A8

PART B - Total final energy

Following the same outline as previous, after removing all components that do not change or that equal "0", what does the total FINAL energy look like?

(B1) K f only

(B2) K r o t f only

(B3) U g r a v f only

(B4) W o t h e r only

(B5) K f + K r o t f

(B6) K f + K r o t f + U g r a v f

(B7) K f + K r o t f + U g r a v f + W o t h e r

Marigold Company began operations on January 2, 2016. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 9 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual Hourly Wage Rate Vacation Days Used by Each Employee Sick Days Used by Each Employee 2016 2017 2016 2017 2016 2017 $11 $12 0 8 5 6 Marigold Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned. Part 1 Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2016 (To accrue the expense and liability for vacations) (To accrue the expense and liability for sick pay) (To record payment for compensated time when used by employees) 2017 (To accrue the expense and liability for vacations) (To accrue the expense and liability for sick pay)

1. The return on assets ratio tells us the profit generated by each dollar in assets. You will want to compare this ratio to Choice Hotels' historical performance and to Marriott International to understand if it is an acceptable ratio. Is the return on assets ratio acceptable? Why or why not?

2. Which of the above ratios would you use to determine which company, Choice Hotels or Marriott International, is more attractive for an acquisition? Why?

3. Based on the financial statement analysis, earnings per share analysis, budgeting ratios, and the above profitability ratios, which company would you invest in and why?

1. Given the selling price and the quantity consumed of two products A and B in 2 different years as follows:

Product Base Year Current Year P0 Q0 P0 Qn Pn Q0 Pn Qn Price P0 Quantity Q0 Price Pn Quantity Qn

A 11 109 15 137

B 61 134 75 167

S:

(a) Calculate the summation values in above table. (fill in the table)

(b) Simple Aggregate Index = =

(c) Weighted Aggregate Index = =

(d) Laspeyres Price Index = =

(e) Laspeyres Quantity Index = =

(f) Paasche Price Index = =

(g) Paasche Quantity Index = =

Question 2

Given the selling price and quantity consumed of three products X, Y and Z in different years as follows:

2016 2017

Products Price ($) Quantity (kg) Price ($) Quantity (kg)

X 6 152 9 106

Y 14 92 16 146

Z 21 62 19 186

Use 2016 as the base year:

a. find the Simple Aggregate Price Index in 2016 and 2017;

b. find the Weighted Aggregate Price Index in 2016 and 2017;

c. find the Laspeyres Price Index in 2016 and 2017;

d. find the Paasche Quantity Index in 2016 and 2017.

Correct the answers to 2 decimal places.

Exercise 2-11

Suppose the following data were taken from the 2017 and 2016 financial statements of American Eagle Outfitters. (All numbers, including share data, are in thousands.)

(a)

Calculate the current ratio for each year. (Round answers to 2 decimal places, e.g. 15.25.)

(b)

Calculate earnings per share for each year. (Round answers to 2 decimal places, e.g. 15.25.)

(c)

Calculate the debt to assets ratio for each year. (Round answers to 1 decimal place, e.g. 29.5%.)

(d)

Calculate the free cash flow for each year. (Enter amounts in thousands. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Assuming Titan had 70 customers in 2015 and 80 customers in 2016,

1. calculate the operating income of Titan for 2015 and 2016;

Particulars                                                                   2015                                         2016

Revenue; 800*450;900*430                                   360,000                                 387,000

Direct Material Cost 3200*35;3300*35                112,000                                 115,500

Conversion Cost                                                      1,800,000                               1,650,000

Selling and Customer Service cost                         495,000                                   495,000

Total Cost                                                              2,407,000                                     2,260,500

Profit/Loss                                                            (2,047,000)                                 (1,873,500)

Suppose that during 2016, the overall market for AllPads grew 3%. The decrease in the selling price of the AllPad and increase in market share (that is, sales increases greater than 3%) are the result of Titan’s strategic actions.

1. Calculate how much of the change in operating income from 2015 to 2016 is due to the industry market size factor, product differentiation, and cost leadership. How does this relate to Titan’s strategy and its success in implementation? Explain.