Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,100 per month plus $0.07 per car washed. The company expected to wash 8,100 cars in August and to collect an average of $6.70 per car washed.

The actual operating results for August appear below.

Required:

Compute the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,000 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 per car washed.

The actual operating results for August appear below.

Required:

Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Roadrunner Co. is building a waste landfill in the desert near Phoenix, AZ. Roadrunner estimates that this landfill will be in operation for 4 years, will cost $175,000,000 to build, and will generate $600 million in revenues during its useful life. Federal law requires that Roadrunner decommission and decontaminate the site at the end of its useful life. A team of engineers has studied the decontamination procedure and has estimated that Roadrunner will have to spend $20,000,000 on the decommissioning process when the landfill is shut down four years from now. Roadrunner's credit-adjusted risk-free rate of interest is 10%; the PV factor for 4 periods at 10% equals 0.683013.

Required:

• In accordance with U.S. GAAP, how should Roadrunner Co. account for the costs associated with the decommissioning process? Prepare the journal entry required and prepare an amortization table for the asset retirement obligation.

• How are the costs associated with the decommissioning process reflected on the income statement? Explain how this accounting treatment improves the matching process.

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company’s expected costs:

For example, electricity costs are $1,950 per month plus $0.20 per car washed. The company expects to wash 8,500 cars in October and to collect an average of $6.40 per car washed.

Auto Lavage’s actual level of activity was 8,600 cars. The actual revenues and expenses for October are given below:

Required:
1. Prepare a flexible budget performance report for October. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,500 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company’s expected costs:

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 per car washed.

The actual operating results for August appear below.

Required:

Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Trevor’s furniture company accounts’ information for 2019 is as follows:

near-cash is $500, the amount of money that customers currently owe to the com-
pany for goods that were purchased on credit is $10,000, the amount of accounts

payable is $9,000. Products in inventory are worth $40,000, accumulated deprecia-
tion is 15% of total gross fixed assets. Lands, buildings and equipment were valued

$126,000. 5-Year Debt is $22,950, common stock is $26,000 and retained earnings
at the end of the year is $31,058. Gross profit is $64,000. Fixed cash operating
expenses, variable operating expenses and depreciation are $21,000, $16,000 and

$15,000 respectively. Interest expenses are $6,000 and the tax rate is 21%. Addi-
tionally, regarding stock, the paid in capital in excess of par is $0.75 per common

stock. The number of common stock is 74,000. On the other hand, the cost of
goods sold is half as much as sales. The preferred stock dividend rate is 2% for a
face-value stock value of $9,000. A short-term bank loan of $3,000 is going to be
paid o↵ next month. Finally, promised bonuses for employees (to be paid o↵ soon)
accrue $1,092.

(a) Construct the income statement for this company.
(b) Construct the balance-sheet statement for this company.
(c) Calculate the current ratio and ROE.

Trevor’s furniture company accounts’ information for 2019 is as follows:

near-cash is $500, the amount of money that customers currently owe to the com-
pany for goods that were purchased on credit is $10,000, the amount of accounts

payable is $9,000. Products in inventory are worth $40,000, accumulated deprecia-
tion is 15% of total gross fixed assets. Lands, buildings and equipment were valued

$126,000. 5-Year Debt is $22,950, common stock is $26,000 and retained earnings
at the end of the year is $31,058. Gross profit is $64,000. Fixed cash operating
expenses, variable operating expenses and depreciation are $21,000, $16,000 and

$15,000 respectively. Interest expenses are $6,000 and the tax rate is 21%. Addi-
tionally, regarding stock, the paid in capital in excess of par is $0.75 per common

stock. The number of common stock is 74,000. On the other hand, the cost of
goods sold is half as much as sales. The preferred stock dividend rate is 2% for a
face-value stock value of $9,000. A short-term bank loan of $3,000 is going to be
paid o↵ next month. Finally, promised bonuses for employees (to be paid o↵ soon)
accrue $1,092.
(a) Construct the income statement for this company.
(b) Construct the balance-sheet statement for this company.
(c) Calculate the current ratio and ROE.

In a high-energy collision between a cosmic-ray particle and a particle near the top of Earth's atmosphere, 104 km above sea level, a pion is created.The pion has a total energy E of 1.92 × 10⁵ MeV and is traveling vertically downward. In the pion's rest frame, the pion decays 35.0 ns after its creation. At what altitude above sea level, as measured from Earth's reference frame, does the decay occur? The rest energy of a pion is 139.6 MeV.