Arndt, Inc., reported the following for 2018 and 2019 ($ in millions): 2018 2019 Revenues $ 996 $ 1,031 Expenses 784 824 Pretax accounting income (income statement) $ 212 $ 207 Taxable income (tax return) $ 210 $ 230 Tax rate: 40% Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2018 for $60 million. The cost is tax deductible in 2018. Expenses include $3 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $36 million and $48 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $28 million ($10 million collected in 2017 but not recognized as revenue until 2018) and $36 million, respectively. Hint: View this as two temporary differences—one reversing in 2018; one originating in 2018. 2018 expenses included a $22 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2019. During 2017, accounting income included an estimated loss of $5 million from having accrued a loss contingency. The loss was paid in 2018 at which time it is tax deductible. At January 1, 2018, Arndt had a deferred tax asset of $7 million and no deferred tax liability. 6. Suppose that during 2019, tax legislation was passed that will lower Arndt’s effective tax rate to 30% beginning in 2020. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2019.

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Arndt, Inc., reported the following for 2018 and 2019 ($ in millions):

1. Expenses each year include $20 million from a two-year casualty insurance policy purchased in 2018 for $40 million. The cost is tax deductible in 2018.
2. Expenses include $2 million insurance premiums each year for life insurance on key executives.
3. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2018 and 2019 were $26 million and $31 million, respectively. Subscriptions included in 2018 and 2019 financial reporting revenues were $18 million ($7 million collected in 2017 but not recognized as revenue until 2018) and $26 million, respectively. Hint: View this as two temporary differences—one reversing in 2018; one originating in 2018.
4. 2018 expenses included a $15 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold in 2019.
5. During 2017, accounting income included an estimated loss of $4 million from having accrued a loss contingency. The loss was paid in 2018 at which time it is tax deductible.
6. At January 1, 2018, Arndt had a deferred tax asset of $4 million and no deferred tax liability.

6. Suppose that during 2019, tax legislation was passed that will lower Arndt’s effective tax rate to 35% beginning in 2020. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for 2019.

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with a refund liability of $340,000. During 2018, Halifax sold merchandise on account for $11,900,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $580,000 in sales for credit, with $321,000 of those being returns of merchandise sold prior to 2018, and the rest being merchandise sold during 2018. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year.

Required:

1. Prepare entries to (a) record actual returns in 2018 of merchandise that was sold prior to 2018; (b) record actual returns in 2018 of merchandise that was sold during 2018; and (c) adjust the refund liability to its appropriate balance at year end.
2. What is the amount of the year-end refund liability after the adjusting entry is recorded?

1.Record the actual sales return of merchandise sold prior to 2018.

Refund Liability

Accounts Receivable

2. Record the cost of merchandise returned for goods sold prior to 2018.

Inventory

Inventory - Estimate returns

3. Record the actual sales return of merchandise sold during 2018.

Sales Returns

Accounts Receivable

4. Record the cost of merchandise returned for goods sold during 2018.

Inventory

Cost of goods sold

5. Record the year-end adjusting entry for estimated returns

Sales Returns

Refund Liability

6. Record the adjusting entry for the estimated return of merchandise to inventory.

Inventory- Estimated returns

Cost of goods sold

2. Ending Balance of the year end refund liability after adjusting is recorded?

A manufacturing area needs to forecast workhours. This is a slightly different project. The data for several months is supplied below. Beside each of the actual numbers in black, the forecast is provided in red. The goal is to calculate three stats on the data: MAD, MAPE, and the tracking signal. Be careful since the data is listed beginning with the most recent. Please round to two decimal places. For MAPE, please convert to a percentage before rounding. Do not enter the percent sign.

What is the non-profit sector and what is it's importance in the United States? What is the present size and scope? List 3-5 key trends in the non-profit sector that have changed in the last decade. What are the present recommendations on key policy issues for the non-profit sector to continue to strengthen its impact on key issues in the United States?

In a study conducted of proctored and non- proctored algebra tests, researches obtained the following results:

Proctored: n=30, x=74.30, s= 12.87

Non Proctored: n=32, x= 74.26, s= 18.15

Use 0.01 to test the claim that students taking non proctored tests get a higher mean that those taking proctored tests.

Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2018, the company decided to switch to the average cost method. Data for 2018 are as follows: Beginning inventory, FIFO (5,500 units @ $26) $ 143,000 Purchases: 5,500 units @ $32 $ 176,000 4,000 units @ $36 144,000 320,000 Cost of goods available for sale $ 463,000 Sales for 2018 (9,000 units @ $72) $ 648,000 Additional Information: The company's effective income tax rate is 40% for all years. If the company had used the average cost method prior to 2018, ending inventory for 2017 would have been $115,000. 6,000 units remained in inventory at the end of 2018. Required: 1. Ignoring income taxes, prepare the 2018 journal entry to adjust the accounts to reflect the average cost method. 2. What is the effect of the change in methods on 2018 net income?

Table 1: GDP Country X: 2017

Table 2: GDP Country X: 2018

1. You are interested in calculating real GDP growth in Country X. (Use Table 1 and 2 to answer the following.)

a. Calculate the Laspeyres Quantity Index (from 2017 to 2018)

b. Calculate the Paasche Quantity Index (from 2017 to 2018)

c. Calculate the Fisher Quantity Index (from 2017 to 2018)

2. You are interested in calculating real GDP growth in Country X. (Use Table 1 and 2 to answer the following.)

a. Calculate the Laspeyres Price Index (from 2017 to 2018)

b. Calculate the Paasche Price Index (from 2017 to 2018)

c. Calculate the Fisher Price Index (from 2017 to 2018)

Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee’s operations and decision making. On January 1, 2018, the balance in the Investment in Lindman account is $336,000. Amortization associated with this acquisition is $17,100 per year. In 2018, Lindman earns an income of $126,000 and declares cash dividends of $31,500. Previously, in 2017, Lindman had sold inventory costing $31,800 to Matthew for $53,000. Matthew consumed all but 25 percent of this merchandise during 2017 and used the rest during 2018. Lindman sold additional inventory costing $39,200 to Matthew for $70,000 in 2018. Matthew did not consume 40 percent of these 2018 purchases from Lindman until 2019.

What amount of equity method income would Matthew recognize in 2018 from its ownership interest in Lindman?

What is the equity method balance in the Investment in Lindman account at the end of 2018?

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 6% bonds, dated January 1, on January 1, 2018. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $64 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $70 million.

Required:

1. Record Fuzzy Monkey’s investment on bonds on January 1, 2018.

2. Record the interest revenue on June 30, 2018.

3. Record the interest revenue on December 31, 2018.

4. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet?

5. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment?