Patricia, a CPA, is the new controller for a small construction company, Domingo Builders, that employs 75 people. The company specializes in custom homes greater than 3,500 square feet. The demand for large custom homes has significantly decreased because of the downturn in the economy. As a result of economic conditions their target market is dwindling, significantly affecting the company’s finances.

The ability to collect an outstanding receivable that is significant and material is in doubt. Prior to year-end Patricia discusses the outstanding receivable with the CEO. Patricia believes that the company owing the outstanding receivable will not last for another year. Patricia believes that the allowance for uncollectible accounts must be adjusted to a value that is reasonably realizable. The CEO disagrees.

The CEO is concerned that if the allowance adjustments are made, then Domingo will not look financially sound. Additionally, the CEO is concerned about the opinion that the auditor may provide as a result of the allowance adjustment. Anything less than a “clean opinion” would jeopardize Domingo’s ability to secure a much-needed bank loan. If the company cannot secure the loan next year, then Domingo might be out of business too.  

The CEO urges Patricia to ignore the allowance adjustment. After all, it is not certain that the outstanding receivable will be uncollectible; the company has not filed for bankruptcy. The CEO believes that Domingo can just weather the storm and will recover from the economic downturn. “I know business will pick up”.

Patricia reflects on what can be done. From her previous experience in public accounting, Patricia reflects on the audit process and information that she thinks the auditors would need to know.

Yellowstone Mining Company had total depletable capitalized costs of $665,000 for a mine acquired in early 2019. It was estimated that the mine contained 950,000 tons of recoverable ore when production began. During 2019, 47,500 tons were mined, and 174,800 tons were mined in 2020. Required: 1. Compute the depletion expense in 2019 and 2020 for financial accounting purposes. 2-a. In 2019, 47,500 tons of ore were sold for $475,000. For tax purposes, operating expenses of the mine were $600,000. The taxpayer may deduct either cost depletion or percentage depletion, which for the type ore produced is 8 percent of production sold from the mine. (Assume, however, that percentage depletion is limited to the amount of net income from the property.) What would be the amount of percentage depletion allowable in 2019? 2-b. What would be the amount of cost depletion allowable for tax purposes in 2019, assuming that capitalized mineral costs are the same for tax purposes as for financial accounting purposes? 2-c. What will be the amount of depletion based on cost that the company could deduct on its tax return in 2020 if it deducts percentage depletion in 2019? 2-d. Suppose that in the first three years of the mine’s life, the company took percentage depletion totaling $820,000. In the fifth year of the mine’s life, production proceeds were $5,300,000. How much percentage depletion could the company deduct in the fifth year, considering allowable percentage depletion rate is 8%?

BTN 19-4 Assume that you are preparing for a second interview with a manufacturing company. The company is impressed with your credentials, but it has several qualified applicants. You anticipate that in this second interview, you must show what you offer over other candidates. You learn the company is not satisfied with the timeliness of its information and its inventory management. The company manufactures custom-order holiday decorations and display items. To show your abilities, you plan to recommend that the company use a job order accounting system.

Required

In preparation for the interview, prepare notes outlining the following:

Your recommendation and why it is suitable for this company.

A general description of the documents that the proposed system requires.

How the documents in part 2 facilitate the operation of the job order accounting system.

A major Fortune 500 company (nonregulated) acquired a small company for $1B three years ago. When the parent company purchased this organization, it paid a 50% premium (of the then stock price) and recorded about 35% of the purchase price as goodwill. The amount of goodwill remains a significant asset on the company’s books and records.

The subsidiary company is about to announce in a press release that, because of competitive pressures in the market place, it needs to reduce its current year forecasted sales and net income by 30% and 40& respectively. The company’s executives believe this decrease will continue in future years. The CEO of the company asked you to prepare a paper explaining to the board of directors and executive management what type of complications this would have on the company’s books and records.

1. What promulgated accounting literature should the company follow? Explain your rationale.

1. On January 1, 2020, Blossom Ltd. had 498,000 common shares outstanding. During 2020, it had the following transactions that affected the common share account:

The company’s year end is December 31.Determine the weighted average number of shares outstanding as at December 31, 2020. (Round answer to 0 decimal places, e.g. 5,275.)

Assume that Blossom earned net income of $3,000,000 during 2020. In addition, it had 80,000 of 7%, $100 par, non-convertible, non–cumulative preferred shares outstanding for the entire year. Because of liquidity limitations, however, the company did not declare and pay a preferred dividend in 2020.

Calculate earnings per share for 2020, using the weighted average number of shares determined above. (Round answer to 2 decimal places, e.g. 15.25.)

Assume that Blossom earned net income of $3,000,000 during 2020. In addition, it had 80,000 of 7%, $100 par, non-convertible, non–cumulative preferred shares outstanding for the entire year. Because of liquidity limitations, however, the company did not declare and pay a preferred dividend in 2020. Assume that net income included a loss from discontinued operations of $400,000, net of applicable income taxes.

Calculate earnings per share for 2020. (Round answers to 2 decimal places, e.g. 15.25.)

Use the five-step decision-making process discussed in Chapter 1 to analyze the following situations and recommend a course of action. (Choose one case only)
1- You work part-time evenings and weekends as a real estate salesperson. You also work full-time for an IT consulting group. When ordering business cards for your real estate business, you decided to include your full-time work email address. As a result, you frequently find yourself receiving and sending emails related to your real estate work from your computer at your IT consulting job. You try to limit this activity to your lunch hour, but there are often urgent messages that require an immediate reply. Lately the number of such emails is increasing. Sometimes you worry what would happen if your manager found out about this activity, but cutting off the flow of emails from your clients could have a serious impact on your ability to serve them and earn commissions. What should you do?
2- The daughter of the firm’s CEO is scheduled to participate in a job interview for an entry level position in the IT organization next week. You are a second-year employee in your firm’s IT organization who will participate in the interview process. You will be one of three people who will interview her to form an assessment and make a group decision about whether or not she will be offered the position. How do you handle this situation?
Notes:
The five-step is :
( Problem definition -Identify alternative -Choose alternative-Develop implementation-Evaluate the result)
answer by using your own words please ..
the name of course is "Professional Computing Issues"

A European company is importing (purchasing) $600,000 of goods in one year. The current spot price is $1.23/€. Risk free rates in the US and Eurozone are 4% and 3%, respectively. The forward rate is $1.20/€. Your CEO wants to implement a money market hedge. This involves borrowing in one currency to purchase the other currency (which you will then invest for one year). What is the amount you are borrowing? Once the money market hedge is finalized a year later, was this hedge more favorable than a forward hedge?

Watching Amazon Flows

Seattle- Market gurus warn us of companies with losses and rising debt. one of those companies, however, is Amazon.com the largest U.S. Internet retailer. Jeff Bezos, founder and CEO of Amazon, started the company in his garage. "The first initial start-up capital for Amazon.com came primarily from my parents, and they invested a large fraction of their life savings," recalls Jeff. "My dad's first question was, 'What's the Internet?'... He wasn't making a bet on this company or this concept. He was making a bet on his son."
Jeff has grown Amazon from an online bookstore into one of the world's largest online retail stores to compete with the likes of Walmart and Target. Amazon's income and liabilities for the past four years follow:

($ millions) 2011 2012 2013 2014
Net Income $631 $(39) $274 $(241)
Liabilities 17,521 24,363 30,413 43,764

Interestingly, while Amazon reports negative income and rising debt, the market sees the company in a positive light. Financial publications such as Forbes named Amazon the 6th "Most Innovative Company in the World" and ranked it as the 13th "World's Most Valuable Brand."
Given Amazon's losses and debt levels, is the market failing to incorporate this? Is there something else that the market is focusing on?
Lets dig a bit deeper. Amazon's financial statement reveal rising sales, narly doubling over the past four years. Although costs exceed slaes in two of the recent four years, the growth in revenues foretells a positive future. Further, Amazon has pursued sizeable investments in research and development --to the tune of $9 billion in 2014 alone, which could yield large future payoffs. Finally, there are its cash flows, which are depicted here:

($ millions) 2011 2012 2013 2014
Operating CF $3903 $4180 $5475 $6842
Investing CF (1930) (3595) (4276) (5065)
Financing CF (482) 2259 (539) 4432

Akey here is its operating cash flows, which have increased 75% over the past four years... an impressive trend! In addition, its large investing cash outflows are what we expect from a growth company. Also, its relatively small financing cash inflows suggest that much of its expansion is self-funded (a positive finding).
It is clear that analysis of Amazon requires examination and interpretation of its cash flows. Moreover, while there is risk in investing in a company with high research and development outlays, the market often sees such outlays as a precursor to sales and income growth. While only the future can reveal the success or failure of such cash outlays, it is clear that the market utilizes cash flow numbers in predicting the future and for stock valuation. "We earn trust with customers over time," insists Jeff. "And that actually does mazimize free cash flow over the long term."

Review the chapter's opener involving Amazon.com and its founder, Jeff Bezos. (UP ABOVE)

Requred

1. In a business such as Amazon, monitoring cash flow is always a priority. Even though Amazon now has billions in annual sales and sometimes earns a positive net income, explain how cash flow can lag behind net income.

2. Amazon is a publicly traded corporation. What are potential sources of financing for its future expansion?

Watching Amazon Flows

Seattle- Market gurus warn us of companies with losses and rising debt. one of those companies, however, is Amazon.com the largest U.S. Internet retailer. Jeff Bezos, founder and CEO of Amazon, started the company in his garage. "The first initial start-up capital for Amazon.com came primarily from my parents, and they invested a large fraction of their life savings," recalls Jeff. "My dad's first question was, 'What's the Internet?'... He wasn't making a bet on this company or this concept. He was making a bet on his son."

Jeff has grown Amazon from an online bookstore into one of the world's largest online retail stores to compete with the likes of Walmart and Target. Amazon's income and liabilities for the past four years follow:

($ millions) 2011 2012 2013 2014
Net Income $631 $(39) $274 $(241)
Liabilities 17,521 24,363 30,413 43,764

Interestingly, while Amazon reports negative income and rising debt, the market sees the company in a positive light. Financial publications such as Forbes named Amazon the 6th "Most Innovative Company in the World" and ranked it as the 13th "World's Most Valuable Brand."

Given Amazon's losses and debt levels, is the market failing to incorporate this? Is there something else that the market is focusing on?

Lets dig a bit deeper. Amazon's financial statement reveal rising sales, narly doubling over the past four years. Although costs exceed slaes in two of the recent four years, the growth in revenues foretells a positive future. Further, Amazon has pursued sizeable investments in research and development --to the tune of $9 billion in 2014 alone, which could yield large future payoffs. Finally, there are its cash flows, which are depicted here:

($ millions) 2011 2012 2013 2014
Operating CF $3903 $4180 $5475 $6842
Investing CF (1930) (3595) (4276) (5065)
Financing CF (482) 2259 (539) 4432

A key here is its operating cash flows, which have increased 75% over the past four years... an impressive trend! In addition, its large investing cash outflows are what we expect from a growth company. Also, its relatively small financing cash inflows suggest that much of its expansion is self-funded (a positive finding).

It is clear that analysis of Amazon requires examination and interpretation of its cash flows. Moreover, while there is risk in investing in a company with high research and development outlays, the market often sees such outlays as a precursor to sales and income growth. While only the future can reveal the success or failure of such cash outlays, it is clear that the market utilizes cash flow numbers in predicting the future and for stock valuation. "We earn trust with customers over time," insists Jeff. "And that actually does mazimize free cash flow over the long term."

Review the chapter's opener involving Amazon.com and its founder, Jeff Bezos. (UP ABOVE)

Requred

1. In a business such as Amazon, monitoring cash flow is always a priority. Even though Amazon now has billions in annual sales and sometimes earns a positive net income, explain how cash flow can lag behind net income.

2. Amazon is a publicly traded corporation. What are potential sources of financing for its future expansion?

Instructions

In this interview project, you will research and determine 10 questions that you would use in an interview and an expected response from each of the interview questions. Start by setting up the scenario for a job that the person being interviewed would be applying for. You can make it up, look up a job advertisement online, or in a newspaper. Include that advertisement in your submission. Research and find 10 appropriate questions to ask in the interview. You will need to cite your resources so be sure to keep the information from any website that you use in your notes. Respond to each of the interview questions with what response you would expect as the interviewer.