Accrual accounting matches revenue with expenses, however accruals can be used to manipulate income and expenses. In the Forbes Magazine article, “Cash Doesn’t Lie,” written by Daniel Fisher, the author discusses the use of negative accruals, changes to estimates and recognizing income before it is earned. Read the article and then:
a. Discuss the use of each of these three techniques and their
effect on current and future earnings reporting.
b. How should changes of accounting estimates that significantly
affect income be reported? Should they be regarded as a change in
accounting principle?
c. Research revenue recognition and discuss the accounting rules
violated that brought down the company Sunbeam.
PLEASE PROVIDE NEW DETAIL ANSWERS TO EACH QUESTION AND PLEASE NO HAND WRITTEN ANSWERS.
In: Accounting
For this assignment, you will select an article from a print or online news source that addresses economic issues or problems in an editorial fashion (you can also use political cartoons or memes that are presented as providing factual information). Using the tools of analysis, you should briefly (1-2 paragraphs) summarize the article, and then analyze and critique the article. You must critique the article and not merely summarize it. Your paper should be well-written and should reflect your current knowledge of economic theory (as limited as it is). (Hint: A good starting point is to identify the assumptions of the author.)
You may select and article of your choice about an economic issues or problem
Please provide the source/article chosen
In: Economics
The accompanying data on x = current density (mA/cm2) and y = rate of deposition (µm/min) appeared in an article. Do you agree with the claim by the article's author that "a linear relationship was obtained from the tin-lead rate of deposition as a function of current density"?
| x | 20 | 40 | 60 | 80 |
| y | 0.29 | 1.10 | 1.76 | 2.07 |
Find the value of r2. (Round your answer to
three decimal places.)
r2 =
Explain your reasoning.
The very high value of r2 denies the author's claim.
The very low value of r2 confirms the author's claim.
The very high value of r2 confirms the author's claim.
The very low value of r2 denies the author's claim.
In: Math
I would like to know about the larger picture, current state and future prospects of the sequence of papers that were written by Sheldon Katz and Cumrun Vafa on F-theory. (Freddy Cachazo was also a co-author in many of these papers)
I guess the same is also known as "geometric engineering". (Kindly explain if that is not the same)
There have been recent works on F-theory by Cumrum Vafa, Jonathan Heckman and others.
I would like to know of how this recent work fits in with the earlier work by Katz and Vafa and where do people see this pursuit to be going and what does the community think of its future prospects.
Are these Katz-Vafa works a prospective field for beginning grad students?
In: Physics
Faith and income is becoming an important issue among certain religious groups. Pastors like Joel Osteen believe that your self-worth is tied to your net worth($). Others like Rick Warren, (The Purpose Driven Life author) feel it is baloney and prefer to focus on themes from the Sermon on the Mount.
For more background,check out: http://www.time.com
search article: DOES GOD WANT YOU TO BE RICH
As the gap between the haves and have nots continues to widen in the USA, is it easier for a wealthy person or a low income person to find belief and live religious values. Another way to describe this question: are wealthy people more likely to be religious than poor people. Or it makes no difference???/
In: Psychology
A new bridge is to be constructed over the East River in New York City. Two structural possibilities exist: the support could be in the shape of a parabola or the support could be in the shape of a semi-ellipse.
The space between the supports needs to be 1050 feet.
The height at the center of the arch needs to be 350 feet. Determine the equation of a parabola with these characteristics. (Hint: Place the vertex of the parabola at the origin to simplify calculations).
Part 1
a. What is your equation for the parabola? An empty tanker, 520 feet wide and 260 feet high needs to pass beneath the bridge.
b. Can the tanker pass under this bridge? Justify your answer. Determine the equation of a semi-ellipse with the same characteristics. (Hint: Place the center of the semi-ellipse at the origin to simplify calculations)
Part 2
a. What is the equation for the semi-ellipse? Show the work required to determine the equation.
b. Will the tanker (520 feet wide and 260 feet high) be able to pass under this bridge? Justify your answer.
Part 3
a. If the river were to flood and rise 10 feet, how would the channel widths and the clearances of the two bridges be affected? Explain, using numbers, how the width of the channel would be affected for each bridge.
b. With all things considered, which bridge design would you choose? Explain your reasoning.
In: Civil Engineering
Gutek, Levine, and Ornstein, Foundations of Education, Chapters 1-6.
Discuss how public education is paid for in Tennessee: (1) Local support (name the taxes), (2) state support (name the taxes) and (3) federal support (name the taxes).
In: Operations Management
Complex Balance Sheet
Presented below is the unaudited balance sheet as of December 31, 2016, prepared by Zeus Manufacturing Corporation's bookkeeper.
| Zeus Manufacturing Corporation Balance Sheet for the Year Ended December 31, 2016 |
||||
| Assets | Liabilities and Shareholders' Equity | |||
| Cash | $225,000 | Accounts payable | $133,800 | |
| Accounts receivable (net) | 345,700 | Mortgage payable | 900,000 | |
| Inventories | 560,000 | Notes payable | 500,000 | |
| Prepaid income taxes | 40,000 | Lawsuit liability | 80,000 | |
| Investments | 57,700 | Income taxes payable | 61,200 | |
| Land | 450,000 | Deferred tax liability | 28,000 | |
| Building | 1,750,000 | Accumulated depreciation | 420,000 | |
| Machinery and equipment | 1,964,000 | Total Liabilities | $2,123,000 | |
| Goodwill | 37,000 | Common stock, $50 par; 40,000 shares issued | $2,231,000 | |
| Total Assets | $5,429,400 | Retained earnings | 1,075,400 | |
| Total Shareholders' Equity | $3,306,400 | |||
| Total Liabilities and Shareholders' Equity | $5,429,400 | |||
Your company has been engaged to perform an audit, during which you discover the following information:
Checks totaling $14,000 in payment of accounts payable were mailed on December 31, 2016, but were not recorded until 2017. Late in December 2016, the bank returned a customer's $2,000 check marked "NSF," but no entry was made. Cash includes $100,000 restricted for building purposes.
Included in accounts receivable is a $30,000 note due on December 31, 2019, from Zeus's president.
During 2016, Zeus purchased 500 shares of common stock of a major corporation that supplies Zeus with raw materials. Total cost of this stock was $51,300, and fair value on December 31, 2016, was $47,000. The decline in fair value is considered temporary. Zeus plans to hold these shares indefinitely.
Treasury stock was recorded at cost when Zeus purchased 200 of its own shares for $32 per share in May 2016. This amount is included in investments.
On December 31, 2016, Zeus borrowed $500,000 from a bank in exchange for a 10% note payable, maturing December 31, 2021. Equal principal payments are due December 31 of each year beginning in 2017. This note is collateralized by a $250,000 tract of land acquired as a potential future building site, which is included in land.
The mortgage payable requires $50,000 principal payments, plus interest, at the end of each month. Payments were made on January 31 and February 28, 2017. The balance of this mortgage was due June 30, 2017. On March 1, 2017, prior to issuance of the audited financial statements, Zeus consummated a noncancelable agreement with the lender to refinance this mortgage. The new terms require $100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2018. The final payment is due February 28, 2025.
The lawsuit liability will be paid in 2017.
Of the total deferred tax liability, $5,000 is considered a current liability.
The current income tax expense reported in Zeus's 2016 income statement was $61,200.
The company was authorized to issue 100,000 shares of $50 par value common stock.
Required:
Prepare a corrected classified balance sheet as of December 31, 2016.
In: Accounting
The following information is available for Shanika Company for 2016:
|
Inventories |
January 1 |
December 31 |
| Materials | $ 77,350 | $ 95,550 |
| Work in process | 109,200 | 96,200 |
| Finished goods | 113,750 | 100,100 |
|
December 31 |
|
| Advertising expense | $ 68,250 |
| Depreciation expense-office equipment | 22,750 |
| Depreciation expense-factory equipment | 14,560 |
| Direct labor | 186,550 |
| Heat, light, and power-factory | 5,850 |
| Indirect labor | 23,660 |
| Materials purchased | 123,500 |
| Office salaries expense | 77,350 |
| Property taxes-factory | 4,095 |
| Property taxes-headquarters building | 13,650 |
| Rent expense-factory | 6,825 |
| Sales | 864,500 |
| Sales salaries expense | 136,500 |
| Supplies-factory | 3,250 |
| Miscellaneous costs-factory | 4,420 |
| Required: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A. | Prepare the 2016 statement of cost of goods manufactured.* | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| B. | Prepare the 2016 income statement.*
|
In: Accounting
John Ranton, president and founder of Running Mate, could hardly contain his excitement over the operating results for his company's second year of operations. Running Mate is an online retailer of a GPS running watch that records distance, time, speed, heart rate, and a number of other statistics. Ranton's company does not manufacture the watches, but instead purchases them directly from the manufacturer based in China and resells them through its online shopping site.
During the first two years of operation, Ranton decided to hold the selling price of the watch constant at $100 per unit in an effort to attract business. He was also able to negotiate a deal with the supplier to hold Running Mates cost per watch constant at $80 per unit for the two years.
Operating expenses for each of the first two years of operation consist only of advertising expenses and the salaries paid to the website designer/administrator and the company's book keeper. Because Ranton is busy with his numerous other business ventures, the bookkeeper also looks after the day-to-day operations of Running Mate and has sole signing authority to make expenditures on the company's behalf. To motivate his website designer to create a web site that is easy to use and appealing to customers, Ranton decided to pay her a commission equal to 1% of annual sales in both 2015 and 2016. The salaries paid to the website administra tor and the bookkeeper were the same in both years and totalled $92,000. Annual advertising expenses of $8,000 were also the same in both years.
After reviewing the operating results for 2015 (shown below). Ranton roughly calculated the expected sales and expenses for 2016 based on anticipated sales of 10.000 watches at a price of $100 per unit and a cost of $80 per unit. He calculated expected operating expenses in 2016 based on the 2015 cost per unit of $13.75 ($ 1100008000 Based on his calculations (shown below). Ranton expected a 25% improvement in 2016 operating income, in keeping with the increase in unit sales. So, when Running Mate's bookkeeper provided Ranton with the actual results shown below for 2016, he was thrilled. Operating income had improved 50% compared to 2015 on sales growth of 25%.
Sales (units)..
Sales.....
Cost of goods sold.......
Gross margin.
Operating expenses............
Operating income..................................................
2015
8,000 $800.000 640,000
160000 $
50.000
2016
Expected
10,000 $1,000.000 800.000 200.000 137,500 $ 62,500
Actual
10.000 $1.000.000 800.000 125,000 $ 75,000
Ranton has always been an entrepreneur at heart but has no formal training in financial accounting or management accounting. He has always had the bookkeeper prepare annual financial statements.
Required:
1.
2.
Explain the nature of the error made by Ranton when calculating expected operating income for 2016.
Based on the information provided in the case, recalculate the expected results for 2016.
For Ranton's benefit. provide details on the specific items included in operating expenses (advertising, salaries, and commissions). Based on your calculations of the expected results for 2016, are the actual results for 2016 as good as Ranton originally thought? Explain.
In: Accounting