The following information relates to the Jimmy Johnson Company.

                                    Ending Inventory                    Ending Inventory

Date     At Base-Year Cost At Current Year Cost Price Index

___________________________________________________________________________________________

12/31/15 (base)                 $68,400                                  $68,400                                    1.00

12/31/16                            $91,600                                 $122,744                                   1.34

12/31/17                            $89,800                                 $132,904                                   1.48

Using dollar-value LIFO, 2016 ending inventory is?

Using dollar-value LIFO, 2017 ending inventory is?

What is the change in inventory in base-year prices in 2016 (i.e., comparing 2016 ending inventory to 2015 ending inventory, what is the change in base-year, not current year, prices)?

What is the change in inventory in base-year prices in 2017 (i.e., comparing 2017 ending inventory to 2016 ending inventory, what is the change in base-year, not current year, prices)?

Including the base-year of $68,400, how many layers are there at the end of 2017? (Hint: Any negative changes in inventory should be a correction to a previous layer, not a new layer.)?

The following information was extracted from Mathis Corporation's 2016 annual report:

Common stock
Shares outstanding 12/31/15 90 million
New shares issued 04/01/16 10 million
Shares outstanding 12/31/16 100 million

Preferred stock
$10 par, 10%, convertible into 2 shares of common stock, shares outstanding 50 million

Options
1 million options, each to purchase one common share at $50 per share

Market price of stock
Average for year $75
Beginning of year $70
End of year $78

Preferred dividends paid $50,000,000
Net income for 2016 $350,000,000

Required:
A. Calculate basic earnings per share for 2016? (5 points)
B. What is diluted earnings per share for 2016? (5 points)
C. What does EPS mean? (3 points)
C. What does "antidilutive securities" mean? (3 points)

Please show calculations.

2. (20 pts) Wellcraft Company purchased a machine on January 1, 2015 for $625,000. The machine has a four year useful life and a salvage value of $25,000. The machine was depreciated using sum of the years digits. On January 1, 2017, two years later, it was determined they should have used straight line depreciation and decided to change to straight line. The useful life was also extended by two years, and the salvage value was reduced to $15,000. Profit for 2015 was $800,000 and for 2016 was $900,000 using sum of the years’ digits depreciation. Prior to depreciation expense in 2017, profits were $200,000.

A. Determine the correct profits for 2015, 2016, 2017

B. Assume Wellcraft used the completed contract method for 2016 but switched to percent of completion in 2017.

                                                                        2016                              2017

Profits under completed contract          $400,000                       $450,000
Profits under percent of completion      $650,000                       $580,000

C. Sean Kowalski, CEO, is paid a bonus of 1% of profits each year. Determine his bonus paid to him in 2017.

Managers at marc Corp. are concerned that the company’s costs of production have gone wild. The chief financial officer brings you the following historic data:

marc corp selling price is $80 per unit

Use Excel. Using the High-low method:

Estimate the company’s cost formula.

Estimate the total cost of producing 1,200 units.

Calculate the breakeven point in dollar sales.

Prepare the contribution format income statement when 1,200 units are sold.

Compute the degree of operating leverage when 1,200 units are sold. Compute Net operating income if sales increased 120 units above this level.

Deferred Tax Calculations (Appendix) Wyhowski Inc. reported income from operations, before taxes, for 2015-2017 as follows: 2015 $402,000 2016 460,000 2017 539,000 When calculating income, Wyhowski deducted depreciation on plant equipment. The equipment was purchased January 1, 2015, at a cost of $167,000. The equipment is expected to last three years and have a(n) $14,000 salvage value. Wyhowski uses straight-line depreciation for book purposes. For tax purposes, depreciation on the equipment is $96,000 in 2015, $38,000 in 2016, and $19,000 in 2017. Wyhowski's tax rate is 35%. Required: Enter all amounts as positive numbers. 1. How much did Wyhowski pay in income tax each year? If required, round all calculations to the nearest dollar. Year Taxes Paid 2015 $ 15,750 2016 $ 2017 $ 2. How much income tax expense did Wyhowski record each year? Year Income Tax Expense 2015 $ 2016 $ 2017 $

On May 8, 2015, Jett Company (a U.S. company) made a credit sale to Lopez (a Mexican company). The terms of the sale required Lopez to pay 1,340,000 pesos on February 10, 2016. Jett prepares quarterly financial statements on March 31, June 30, September 30, and December 31. The exchange rates for pesos during the time the receivable is outstanding follow.

Compute the foreign exchange gain or loss that Jett should report on each of its quarterly statements for the last three quarters of 2015 and the first quarter of 2016

Compute the amount reported on Jett's balance sheets at the end of its last three quarters

1) Thomas Company receives information that requires the company to increase its expectations of uncollectible accounts receivable.

Which of the following does not occur on the company’s financial statements?

Group of answer choices

A) Bad debt expense is increased

B) Accounts receivables (gross) is reduced

C) Net income is reduced

D) The allowance account is increased

E) None of the above

2)

On its 2016 income statement, Abbott Laboratories reported research and development expense of $1,422,000,000.

Which of the following statements must be true?

Group of answer choices

A) Abbott Laboratories spent $1,422,000,000 in cash to develop new products and improve old products.

B) Research and development expense reduced Abbott Laboratories 2016 pre-tax income by $1,422,000,000.

C) Abbott Laboratories capitalized at least $1,422,000,000 of research and development costs in 2016.

D) The $1,422,000,000 included amortized research and development costs from prior years that were not previously expensed, because Abbott Laboratories incurs such expenses each year.

3.

The 2016 financial statements of Willamette Valley Vineyards, Inc. include the following footnote:

The average useful life of Willamette’s depreciable assets at the end of fiscal 2016 is:

A) 14.2 years

B) 19.6 years

C) 2.4 years

D) 21.7 years

E) None of the above

3.2 Problem you will be responsible for completing the accounting cycle from adjusting entries to post-closing trial balance. Below is the unadjusted trial balance for Walton Anvils as of December 31, 2016, and the data for the adjustments. There is also an Excel Template for this problem that you may download and use (or you may use your own). Walton Anvils Unadjusted Trial Balance December 31, 2016 Balance Account Title Debt Credit Cash $ 16,900.00 Accounts Receivable 17,500 Prepaid Rent 2,500 Office Supplies 1,900 Equipment 23,000 Accumulated Depreciation - Equipment $ 7,000.00 Accounts Payable 6,200.00 Salaries Payable Unearned Revenue 5,600.00 Common Stock 28,000.00 Retained Earnings 1,600.00 Dividends 4,500 Service Revenue 20,800.00 Salaries Expense 2,900 Rent Expense Depreciation Expense - Equipment Supplies Expense Total $ 69,200.00 $ 69,200.00 Adjustment Data a. Unearned revenue still unearned at December 31, 2016 $1,800 b. Prepaid rent still in force at December 31, 2016 $2,300 c. Office supplies used $1,400 d. Depreciation $380 e. Accrued Salaries Expense at December 31, 2016 $210 Requirements Open T-accounts using the balances in the unadjusted trial balance. Complete the worksheet for the year ended December 31, 2016. Prepare the adjusting entries and post to the T-accounts. Prepare the adjusted trial balance. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form. Prepare the closing entries and post to the T-accounts. Prepare a post-closing trial balance. Calculate the current ratio for the company

The following trial balance before adjustments is for Snowcrest Ltd. on December 31, 2016:

Data for adjusting entries:

1.As at December 31, 2016, 80% of the wages that had been paid in advance to the salespeople had been earned.

2.A count of the supplies at year end revealed that $600 of supplies were still on hand.

3.Depreciation on the equipment for 2016 was $1,000.

4.The unearned revenue was advance receipts for future deliveries of goods. By December 31, 2016, two thirds of these deliveries had been made.

5.The bank loan was a six-month loan taken out on October 1, 2016. The interest rate on the loan is 9%, but the interest is not due to be paid until the note is repaid on April 1, 2017.

6.Salaries owed at year end and not yet recorded were $500.

7.The rent expense figure includes $600 paid in advance for January 2017.

8.Income tax for the year should be calculated using a tax rate of 25%. (Hint: After you finish the other adjusting entries, determine the income before income tax and then calculate the tax as 25% of this amount.)

Required

Prepare the adjusting entries for the year 2016.

(Comparing Cash versus Accrual Reports) The Professional Persons Association of Middleton is a nonprofit organization that is subject to the provisions of Audits of Certain Nonprofit Organizations. That dues for members are $40 per year; the fiscal year ends on August 31. Prior to September 1, 2015, 410 members had paid their dues for the year ended August 31, 2016. Prior to September 1, 2016, 457 members had paid their dues for the year ended August 31, 2017; one of these died suddenly on August 30, 2016, and the governing board decided to return his check to his widow. During the fiscal year ended on August 31, 2016, 36 other members died; 15 members were dropped for nonpayment of dues; and 1 member was expelled – no dues refunds were made to the estates of the 36 decedents; a $20 refund was made to the person expelled. Offsetting these membership decreases, 123 new members joined in fiscal 2016; membership as of September 1, 2015, had been 2,980 persons. Members admitted during a year are charged dues for the full year.

The association has reported membership dues revenue on the cash basis in prior years. You bring to the attention of the governing board the requirement that financial statements should be on the accrual basis, unless cash basis statements are not materially different. Since you are so knowledgeable, the board asks you to compute membership dues revenue for fiscal 2016 on both the cash basis and the accrual basis and to report to them the amount on each basis and your conclusion as to whether the difference between the two is material.

(457 memebers are other than 2,980 persons.)