During the course of a​ year, the labor force consists of the same 963963 people. Of​ these, 1515 lack skills that employers desire and hence remain unemployed throughout the year. At the same​ time, every month during the​ year, 3939 different people become​ unemployed, and 3939 other different people who were unemployed find jobs. There is no cyclical unemployment.

For 2016, Clapton Company reported a decline in net income. At the end of the year, S. Hand, the president, is presented with the following condensed comparative income statement:

Prepare a comparative income statement with horizontal analysis for the two-year period, using 2015 as the base year. Use the minus sign to indicate an amount or percent decrease. If required, round percentages to one decimal place.

Assume that XYZ company was started a year ago. As they are trying to figure out how to account for the uncollectible accounts, they are unsure of which method to use. If you recall in your principles class, it was broken down in to the Allowance Method and the Direct Write-Off Method. This book breaks the Allowance Method into two areas: 1. The sales revenue approach; and 2. The gross accounts receivable approach. There are not sure which method to use: 1. The sales revenue approach; 2. The gross accounts receivable approach; or 3. The direct write off method approach.

You have been hired to answer these specific questions: 1. Explain to them the difference among these three methods and which method you recommend and explain specifically why you would recommend that method. 2. Discuss the importance of making sure the accounts receivable reflects the correct balance and what the net realizable value is.

"Compute the depreciation each year of a machine that costs $30,000 to purchase and $5,300 to install with 10 years of life. Use DDB method (multiplier = 2) switching to straight line depreciation when appropriate. Assume a salvage value of $0. How much should be depreciated in year 9?"

Eleanor needs $40,000 a year to live on in retirement net of the income she will receive. She will be retiring in 22 years and is funding for a 25-year retirement. The inflation rate is expected to be 3.5 percent a year and the after-tax return on her investments 6 percent.

a) How much will she fall short to at the beginning of the retirement period?

b) What lump sum will she need at the beginning of the retirement period?

c) What is the required yearly savings?

Information for Entity A for the year ended December 31, 2019 ($ in millions):

  

Show work.

A. Prepare the appropriate journal entry to record income taxes. Show work where possible.

For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement:

Question not attempted.

What is the outlook for consumer demand over the next year? Are the signals mixed or strong? Explain.

Is the residential real estate slump over? What is the outlook for autos?

Is consumer confidence strong today? By what measure?

[The following information applies to the questions displayed below.]

At the beginning of Year 2, the Redd Company had the following balances in its accounts:

During Year 2, the company experienced the following events:

1. Purchased inventory that cost $11,200 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $800 were paid in cash.
2. Returned $600 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
3. Paid the amount due on its account payable to Ross Company within the cash discount period.
4. Sold inventory that had cost $8,000 for $13,500 on account, under terms 2/10, n/45.
5. Received merchandise returned from a customer. The merchandise originally cost $1,200 and was sold to the customer for $2,100 cash. The customer was paid $2,100 cash for the returned merchandise.
6. Delivered goods FOB destination in Event 4. Freight costs of $800 were paid in cash.
7. Collected the amount due on the account receivable within the discount period.
8. Sold the land for $3,500.
9. Recognized accrued interest income of $500.
10. Took a physical count indicating that $6,500 of inventory was on hand at the end of the accounting period. (Hint: Determine the current balance in the inventory account before calculating the amount of the inventory write down.)

Post the beginning balances and the events to the T-accounts

A company is evaluating the replacement of an old machine with a new one. Last year, the company hired a consultant to conduct a feasibility study about this replacement project, which cost them $500,000 at that time. The consulting fees were expensed last year.
The old machine was purchased 2 years ago for $3 million and was being depreciated using MACRS 5-year class (20%, 32%, 19.2%, 11.52%, 11.52% and 5.76%). The old machine can be sold for $1 million at this time. If the old machine is not replaced, it can be sold for $400,000 four years from now.
The replacement machine has a cost of $2 million, an estimated useful life of 4 years. This machine will be depreciated using straight-line method to 0 salvage value. The replacement machine would permit an output expansion, so sales would rise by $1 million per year; even so, the new machine’s much greater efficiency would cause operating expenses to decline by $250,000 per year. The new machine would require that inventories be increased by $1 million, but accounts payable and accrued expenses would simultaneously increase by $500,000 and 200,000 respectively. The interest expense on the debt component of the capital required for this project will be $250,000 annually. The new machine can be sold for $50,000 at the end of 4 years to another company.
The company’s marginal federal-plus-state tax rate is 40%, and its WACC is 12%.
What is the CF1 (The cash flow to be used in NPV calculation)?
What is the CF4 (The cash flow to be used in NPV calculation)?
What is the NPV of the project?