15.30 Note: This exercise requires a computer and statistical software. The data mentioned below can be found in several formats on your Premium Website under "Chapter datasets".

For the top law firms in the world in terms of profit per equity partner, data file XR15012 lists the number of equity partners and the gross revenue ($ millions) for the most recent fiscal year. Given these data, determine the least-squares equation for predicting gross revenue on the basis of the number of equity partners, then interpret its slope. (SOURCE: law.com, August 8, 2009.)

Please round your answers to 1 decimal place.

a. The point estimate for gross revenue when there are 200 equity partners is $ million

b. For an individual law firm having 200 equity partners, the lower bound of the 90% prediction interval for gross revenue is $ million

c. For an individual law firm having 200 equity partners, the upper bound of the 90% prediction interval for gross revenue is $ million

c. For all law firms having 200 equity partners, the lower bound of the 90% confidence interval for their mean gross revenue is $ million.

d. For all law firms having 200 equity partners, the upper bound of the 90% confidence interval for their mean gross revenue is $ million.

Interpreting the Accounts Receivable Footnote
Hewlett-Packard Company reports the following in its 2015 10-K report.

Footnotes to the company's 10-K provide the following additional information relating to its allowance for doubtful accounts.

(a) What is the gross amount of accounts receivables for Hewlett-Packard in fiscal 2015 and 2014?

(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2015 and 2014? (Round your answers to two decimal places.)

home / study / business / finance / finance questions and answers / problem 1 tallahassee clinic projected the following budget information for 2018: total ffs ...

Your question has been answered

Let us know if you got a helpful answer. Rate this answer

Question: Problem 1 Tallahassee Clinic projected the following budget information for 2018: Total FFS V...

Problem 1

Tallahassee Clinic projected the following budget information for 2018:

Construct Tallahassee Clinic’s static operating budget for 2018. (See Exhibit 8.3, page 283. Note that there are four components that need to be included: Volume Assumptions, Revenue Assumptions, Cost Assumptions, and the Pro Forma Profit and Loss or P&L projected Statement.)

Revenue Assumptions

Blue Cross Reimbursement                   900,000           (90,000 x 0.4 x 25)

Celtic Insurance Co Reimbursement      1,080,000        (90,000 x 0.6 x 20)

Total Revenue                                      $1,980,000

Cost Assumptions

Variable Expenses        

            Labor                                       1,200,000        (48,000 x 25)

            Supplies                                   150,000           (100,000 x 1.5)

            Total Variable Expense              1,350,000

            Fixed Costs                               500,000

Pro Forma Profit and Loss (P&L) Statement:

Revenue:

FFS 1,980,000

Costs:

Variable Costs 1,350,000

Contribution Margin 630,000

Fixed Costs 500,000

Projected Profit 130,000

Problem 2

Refer to Problem 1 above. Tallahassee Clinic’s actual results for 2018 are shown in the table below:

a. Construct Tallahassee Clinic’s flexible budget for 2018 and actual operating results for 2018. (Hint: place the three budgets side by side. See Exhibits 8.4 and 8.5).

b. What is the profit variance?

c. Wat is the revenue variance?

d. What is the cost variance?

e. Focus on the revenue side. What is the volume variance?

f. Focus on the revenue side. What is the price variance?

g. Focus on the cost side. What is the volume variance?

h. Focus on the cost side. What is the management variance?

I NEED PROBLEM 2 ANSWERED......SENT PROBLEM 1 FOR REFERENCE, IT ALREADY HAS THE ANSWERS. THANK YOU

1)     In the short run, the:

a. firm has complete flexibility with respect to input use.

b.availability of all inputs is fixed.

c.operating period is longer than the planning period.

d.availability of at least one input is fixed.

2)     Point elasticity measures elasticity:

a. over a given range of a function.

b. at a spot on a function.

c. over a given range along a function.

d.before non-price effects.

3)     If the slope of a long-run total cost function decreases as output increases, the firm's underlying production    function exhibits:

a. constant returns to scale.

b. decreasing returns to scale.

c. decreasing returns to a factor input.

d. increasing returns to scale.        

4)     The vigor of competition always decreases with a fall in:

a. product differentiation.

b. barriers to entry.

c. the level of available information.

d. the number of competitors.

5)     In the short run, a monopolist will:

a. shut down if price equals average total cost.

b. shut down if price is less than average total cost.

c. shut down if price is less than average variable cost.

d. never shut down.

6)     With elastic demand, a price increase will:

a. decrease marginal revenue.

b. decrease total revenue.

c. increase total revenue.

d. decrease marginal revenue and total revenue.

7)     In competitive market equilibrium, the firm's:

a. MR = MC and P > AR

b. MR = MC and P > AC

c. AR = AC and MR > MC

d. P = MR = AR = AC = MC

8)     A government policy that addresses market failures caused by positive externalities is:

a. patent grants.

b. subsidies for pollution reduction.

c. tax policy.

d. the establishment of operating controls.

9)     A production function describes the relation between output and:

a. technical progress.

b. one input.

c. total cost.

d. all inputs.

10) When the cross-price elasticity = 3:

a. demand rises by 3% with a 1% increase in the price of X.

b. the quantity demanded rises by 3% with a 1% increase in the price of X.

c. the quantity demanded rises by 1% with a 3% increase in the price of X.

d. demand rises by 1% with a 3% increase in the price of X.

11) Marginal profit equals average profit when:

a. marginal profit is maximized.

b. average profit is maximized.

c. marginal profit equals marginal cost.

d. the profit minimizing output is produced.

12) When the cross-price elasticity = 3:

a. demand rises by 3% with a 1% increase in the price of X.

b. the quantity demanded rises by 3% with a 1% increase in the price of X.

c. the quantity demanded rises by 1% with a 3% increase in the price of X.

d. demand rises by 1% with a 3% increase in the price of X.

13) A firm will maximize profits by employing the quantity of each input where the marginal:

a. revenue product of each input equals its price.

b. revenue equals the price of each input.

c. product of each input is equal.

d. product of each input equals its price.

Q1. Which of the following statements is true? [1 mark]

1. Alpha Co owes its employees $5,000 at the year-end on Dec 31, 2014. Payment of the employees’ wages on Jan 3, 2015 will include a debit to wages expense, and credits to wages payable and cash.

2. Beta Co. purchased $5,000 worth of supplies in August and recorded the purchase in the Supplies account. On Dec 31, the fiscal year-end, $3,200 of the supplies remained. The Dec 31, year-end adjusting entry would include a debit of $2,800 to Supplies.

3. On June 30, Gamma Co. received $15,000 cash as a down payment on a 12-month consulting contract. Gamma recorded cash and recognized an appropriate liability. At year end on Dec 31, Gamma will debit consulting revenue for $7,500.

4. On Sept 1, Delta Co. paid $9,000 for a six-month insurance policy, debiting prepaid insurance. After making the appropriate adjusting entry on Dec 31, the prepaid insurance account would have a balance of $6,000.

5. On August 31, 2014, a company signed a $10,000 12 month, note payable bearing 6% interest pa. The company’s Dec 31, year-end adjusting entry should include a credit of $200 to interest payable.

Q2. Which of the following statements is true? [1 mark]

1. The 4 steps in closing are, close; (1) credit balances in revenue accounts to Income Summary; (2) credit balances in expense accounts to Income Summary; (3) Income Summary to Owner's Capital; (4) Withdrawals to Owner's Capital.

B.     Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the withdrawals account to owner's capital.  

C.     Closing entries are required at the end of each accounting period to close all ledger accounts.

D.     Asset, liability, and revenue accounts are not closed while a company continues in business.

E.     The income summary account is used during the adjusting process to hold revenue, expenses, and withdrawals, before the net difference is added to or subtracted from the owner’s capital.

Q3. Which of the following statements is false? [1 mark]

1. The cash basis of accounting recognizes revenues when cash is received from customers.
2. The accrual basis of accounting recognizes expenses when they are incurred.
3. The cash basis of accounting requires adjustments to match expenses with revenues.
4. The accrual basis of accounting recognizes revenue when it is earned.
5. The cash basis of accounting recognizes expenses when cash is paid.
   

Q4. Which of the following is true? [1 mark]

1. When total debits equal the total credits in a trial balance it guarantees no errors were made.
2. Matching principle requires expenses to be recorded in the same accounting period as they are incurred.
3. Closing entries are necessary so that owner's capital will begin each period with a zero balance.
4. The last 4 steps in the accounting cycle include analyzing, journalizing, posting, and preparing a trial balance.
5. Temporary accounts accumulate financial data related to one period. Temporary accounts include revenue, expenses, accumulated depreciation, and withdrawals.

I need give me example in every step. Do not use Excel. Thank you.

On January 1,2018, Vidalia Company accepted a 14 % note, dated January 1, 2018 with a face amount of $ 2,480,000 in exchange for cash. The note is due in 10 years. For notes of similar risk and​ maturity, the market interest rate is 16 %Interest is paid each December 31.

Requirement a.   Determine the present value of the note at January ​1,2018. (Use the present value and future value​ tables, a financial​ calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula​ method, use factor amounts rounded to five decimal​ places, X.XXXXX. Round intermediary currency computations and your final answers to the nearest whole​ dollar.)

Solution:

The present value of the note receivable is $ (.............)

Requirement b. Prepare the journal entry at the issuance of the note. Before recording journal​ entry, first calculate the discount on notes receivable using the below formula.

Solution:

Now, record the journal entry for issuance of the note. In this journal​ entry, we will increase notes receivable account and decrease cash and discount on notes receivable accounts. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

Requirement c. Prepare the journal entry to record the interest revenue for the first 2 years.

The discount represents deferred interest revenue to be earned over the life of the note. Companies amortize the discount to interest

revenue over the loan term using the effective interest method. There are two primary effects of the discount amortization.

-To determine the interest revenue each​ period, we construct an amortization table using the effective interest rate method. The amortization table will show us the effective interest for each​ period, the discount amortization​ (the difference between the effective interest for the period and the interest​ received), and the amortized cost​ (the prior amortized cost balance plus the current discount​ amortization). Use the table headings as a guide to walk you through the calculations. The opening amortized cost balance and the annual interest revenue amounts that you have previously calculated have been entered for you. Go ahead and complete the amortization table for the first year. ​(Round all amounts you enter into the amortization table to the nearest whole dollar and enter all amounts as positive​ numbers.)

Solution:

Use the amortized cost balance you calculated at the end of the first year to determine the effective​ interest, discount​ amortization, and updated amortized cost for the second year. ​(Round all amounts you enter into the amortization table to the nearest whole dollar and enter all amounts as positive​ numbers.)

Solution:

-Begin by preparing the journal entry to record interest income for the first year.

​-Now, prepare the journal entry to record the interest revenue for December 31, 2019. Review the December ​31,2019

Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Account Title Debits Credits Cash 31,400 Accounts receivable 40,200 Supplies 1,600 Inventory 60,200 Notes receivable 20,200 Interest receivable 0 Prepaid rent 1,000 Prepaid insurance 6,200 Office equipment 80,800 Accumulated depreciation 30,300 Accounts payable 31,200 Salaries payable 0 Notes payable 50,200 Interest payable 0 Deferred sales revenue 2,100 Common stock 61,400 Retained earnings 29,000 Dividends 4,200 Sales revenue 147,000 Interest revenue 0 Cost of goods sold 71,000 Salaries expense 19,000 Rent expense 11,100 Depreciation expense 0 Interest expense 0 Supplies expense 1,200 Insurance expense 0 Advertising expense 3,100 Totals 351,200 351,200 Information necessary to prepare the year-end adjusting entries appears below. Depreciation on the office equipment for the year is $10,100. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $800. On October 1, 2021, Pastina borrowed $50,200 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years. On March 1, 2021, the company lent a supplier $20,200 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022. On April 1, 2021, the company paid an insurance company $6,200 for a one-year fire insurance policy. The entire $6,200 was debited to prepaid insurance. $500 of supplies remained on hand at December 31, 2021. A customer paid Pastina $2,100 in December for 800 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. On December 1, 2021, $1,000 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $500 per month. The entire amount was debited to prepaid rent. Prepare an adjusted trial balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below.

Information necessary to prepare the year-end adjusting entries appears below.

1. Depreciation on the office equipment for the year is $10,900.
2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $1,200.
3. On October 1, 2021, Pastina borrowed $51,800 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.
4. On March 1, 2021, the company lent a supplier $21,800 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.
5. On April 1, 2021, the company paid an insurance company $7,800 for a one-year fire insurance policy. The entire $7,800 was debited to prepaid insurance.
6. $740 of supplies remained on hand at December 31, 2021.
7. A customer paid Pastina $2,900 in December for 1,200 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
8. On December 1, 2021, $1,800 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $900 per month. The entire amount was debited to prepaid rent.

rev: 09_14_2019_QC_CS-180268, 10_11_2019_QC_CS-184133

Problem 2-4 (Algo) Part 6

6. Prepare a post-closing trial balance

Customer A. Smith owed Stonebridge Electronics $325. On April 27, 2016, Stonebridge determined this account receivable to be uncollectible and wrote off the account. The company uses the direct write-off method. On July 15, 2016, Stonebridge received a check for $325 from the customer. How should the July 15, 2016 transaction be recorded?

Group of answer choices

Flag this Question

Question 152.5 pts

Which of the following is the correct formula to calculate inventory turnover?

Group of answer choices

Inventory turnover = Cost of goods sold / Average merchandise inventory

Inventory turnover = Cost of goods sold × Average merchandise inventory

Inventory turnover = Cost of goods sold + Average merchandise inventory

Inventory turnover = Cost of goods sold - Average merchandise inventory

Flag this Question

Question 162.5 pts

The ending merchandise inventory for the current year is overstated by $25,000. What effect will this error have on the following year's net income?

Group of answer choices

The net income will be overstated by $50,000.

The net income will be overstated by $25,000.

The net income will be understated by $25,000.

The net income will be understated by $50,000.

Flag this Question

Question 172.5 pts

Which of the following is added to operating income to arrive at net income?

Group of answer choices

sales revenue

cost of goods sold

interest revenue

operating expenses

Flag this Question

Question 182.5 pts

The goal of reporting realistic figures and never overstating assets or net income applies to the ________.

Group of answer choices

conservatism principle

materiality concept

disclosure principle

consistency principle

Flag this Question

Question 192.5 pts

In a good internal control system, which of the following sets of documents is required for proper approval of a payment to a supplier?

Group of answer choices

a journal entry, a supplier invoice, and a description of the goods being purchased

a receiving report, an invoice, and a purchase order

a purchase order, a journal entry, and a price catalog

a supplier invoice, a bill of lading, and the supplier's financial statements

Sun Corporation received a charter that authorized the issuance of 96,000 shares of $3 par common stock and 22,000 shares of $75 par, 4 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 14,400 shares of the $3 par common stock for $5 per share. 12 Sold 2,200 shares of the 4 percent preferred stock for $85 per share. Apr. 5 Sold 19,200 shares of the $3 par common stock for $7 per share. Dec. 31 During the year, earned $314,200 in cash revenue and paid $240,000 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. 31 Closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,300 shares of the $75 par preferred stock for $95 per share. May 5 Purchased 600 shares of the common stock as treasury stock at $6 per share. Dec. 31 During the year, earned $249,600 in cash revenues and paid $175,600 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock. 31 Closed revenue, expense, and dividend accounts to the retained earnings account.

Required
a. Prepare journal entries for these transactions for Year 1 and Year 2 and post them to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answer to the nearest dollar amount. Select "12/31 cl." for all the closing entries.)
  

• 1

  Sold 14,400 shares of the $3 par common stock for $5 per share.

• 2

  Sold 2,200 shares of the 4 percent preferred stock for $85 per share.

• 3

  Sold 19,200 shares of the $3 par common stock for $7 per share.

• 4

  Record cash revenue earned.

• 5

  Record payment for operating expenses.

• 6

  Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2.

• 7

  Record the closing entry for service revenue.

• 8

  Record the closing entry for operating expenses.

• 9

  Record the closing entry for dividends.

• 10

  Paid the cash dividend declared on December 31, Year 1.

• 11

  Sold 3,300 shares of the $75 par preferred stock for $95 per share.

• 12

  Purchased 600 shares of the common stock as treasury stock at $6 per share.

• 13

  Record cash revenue earned.

• 14

  Record payment for operating expenses.

• 15

  Declared the annual dividend on the preferred stock and a $0.75 per share dividend on the common stock.

• 16

  Record the closing entry for revenue accounts.

• 17

  Record the closing entry for operating expenses.

• 18

  Record the closing entry for dividends.

6