Flow of Costs and Income Statement

Technology Accessories Inc. is a designer, manufacturer, and distributor of accessories for consumer electronic products. Early in 20Y3, the company began production of a leather cover for tablet computers, called the iLeather. The cover is made of stitched leather with a velvet interior and fits snugly around most tablet computers. In January, $762,000 was spent on developing marketing and advertising materials. For the first six months of 20Y3, the company spent an additional $1,405,000 promoting the iLeather. The product was ready for manufacture on January 21, 20Y3.

Technology Accessories Inc. uses a job order cost system to accumulate costs for the iLeather. Direct materials unit costs for the iLeather are as follows:

Leather$10.00

Velvet5.00

Packaging0.40

Total$15.40

The actual production process for the iLeather is fairly straightforward. First, leather is brought to a cutting and stitching machine. The machine cuts the leather and stitches an exterior edge into the product. The machine requires one hour per 130 iLeathers.

After the iLeather is cut and stitched, it is brought to assembly, where assembly personnel affix the velvet interior and pack the iLeather for shipping. The direct labor cost for this work is $0.50 per unit.

The completed packages are then sold to retail outlets through a sales force. The sales force is compensated by a 20% commission on the wholesale price for all sales.

Total completed production was 500,000 units during the year. Other information is as follows:

Number of iLeather units sold in 20Y3460,000

Wholesale price per unit$40

Factory overhead cost is applied to jobs at the rate of $1,300 per machine hour. There were an additional 20,000 cut and stitched iLeathers waiting to be assembled on December 31, 20Y3.

In your computations, if required, round interim per unit costs to two decimal places and final answers to the nearest whole dollar.

Required:

1. Prepare an annual income statement for the iLeather product.

Technology Accessories Inc.

Income Statement

For the Year Ended December 31, 20Y3

Sales $

Cost of Goods Sold

Gross Profit $

Selling Expenses:

Salespersons Commissions $

Advertising Design

Advertising Expenses

Total Selling Expenses

Operating income $

Feedback

1.

a. Calculate the sales revenue.

b. Calculate the manufacturing cost per unit (direct and indirect costs).

c. Assign all the manufacturing costs per unit to the number of units sold.

2. Determine the balances in the finished goods and work in process inventories for the iLeather product on December 31, 20Y3.

Finished Goods$

Work in Process$

and Sons Ltd are considering expanding their operations. Several alternative strategies are being discussed for financing this expansion. The latest balance sheet of the company as t 31 December 2015 is as follows: and Sons Ltd Balance sheet at 31 December 2015 K K Non-Current assets Land and buildings 40,000 Plant and equipment 90,000 130,000 Current assets Inventory 50,000 Debtors 40,000 Cash 5,000 95,000 Creditors: amounts falling due within one year 25,000 Net current assets 70,000 Total assets less current liabilities 200,000 Creditors: amounts falling due within one year: 12% loan repayable 2021 90,000 110,000 Share capital and reserves K 8% cumulative preference shares of K1 each 30,000 Ordinary shares of K1 each 50,000 Income statement 30,000 110,000 The board of directors has identified the following possible alternative ways of obtaining the additional K50,000 required during the following year.: (a) Issue additional ordinary shares (b) Issue additional 8 per cent preference shares. (c) Raise an additional long-term loan at 12 per cent. Discuss the company’s existing capital structure in terms of its gearing, and examine the advantages and disadvantages of each alternative method of financing its expansion plan.

Required:

1. Identify how format of the above classified balance sheet provides useful information (1 mark)
2. Identify at least three differences in balance sheet reporting between British and U.S. firms as shown in the above balance sheet. (1.5 mark)
3. Calculate at least three financial ratios by using the information available in the above format of balance sheet (1.5 mark).

Presented below is the classified balance sheet for one of businesses:

Required:

1. Identify how format of the above classified balance sheet provides useful information.
2. Identify at least three differences in balance sheet reporting between British and U.S. firms as shown in the above balance sheet. .

3.Calculate at least three financial ratios by using the information available in the above format of balance sheet .

1. If the interest rate is rising and stock prices are simultaneously rising, then according to the fundamental theory of stock pricing

Write a C++ program, falling.cpp, that inputs a distance in meters from the user and computes the amount of time for the object falling from that distance to hit the ground and the velocity of the object just before impact. Air resistance is discounted (assumed to fall in a vacuum).

To compute the time, use the formula: t = Square Root (2d / g)

where d is the distance in meters and g is the acceleration due to gravity on earth (use 9.807 meters/sec2). The time is measured in seconds.

To compute the velocity, use the formula:
v = Square Root (2dg)
The velocity is measured in meters per second.

You are required to write the following functions:

// Computes the amount of time for an object to fall to the // ground given the distance to fall as a parameter. The // time is returned (computeTime does not print anything). double computeTime (double distance);

// Computes the final velocity of an object falling to the // ground given the distance to fall as a parameter. The // velocity is returned (computeVelocity does not print // anything).

double computeVelocity (double distance);

// print prints its three parameters with labels.
// Print does not return a value.
void print (double distance, double time, double velocity);

Sample run:

Enter the distance: 100

Distance: 100.00 meters Time: 4.52 seconds
Velocity: 44.29 meters/second

Double values should be printed with two digits after the decimal.

In Ontario, the HST rate is 13 percent, in Alberta there is only GST of 5 percent. For which of the following transactions will the rate charged be 5 percent? Question 6 options:

A. An Ontario registrant ships a product to a recipient in Alberta.

B. An Ontario registrant sells a product to a resident of Alberta who is visiting Ontario.

C. An Alberta registrant ships a product to a recipient in Ontario.

D. A writer located in Alberta produces a book for a publisher located in Ontario and receives payment from the Ontario office.

The term "supply" as used in the Excise Tax Act would include all of the following except: Question 7 options:

A. The sale of a car by a car dealership.

B. The provision of engineering services by an engineering firm.

C. A trade of hairdressing services provided in exchange for tax advice.

D. The provision of employment services by an employee to their employer.

question 3: John’s Rooms is a new business which started on January 1, 2016. Its sales during its first four quarters of operation were as follows: Quarter Sales 1 - $13,000 2 - 18,000 3 - 24,000 4 - 27,000 On what date will John’s Rooms have to begin collecting GST? Question 3 options A. The date in the second quarter on which cumulative sales total $30,000. B. July 1, 2016. C. August 1, 2016. D. September 1, 2016.

Question 4: How does the Canadian government compensate for the regressive nature of the GST? Question 4 options: A. By allowing an exemption from the tax for lower income individuals. B. By ensuring that items purchased more frequently by lower income individuals are not subject to the tax. C. By providing lower income individuals with GST refunds. D. By providing a refundable GST tax credit that is available to lower income individuals.

Question 5: Kevin Knight, a lawyer, is a sole practitioner in the province of Ontario. The HST rate in Ontario is 13 percent. Kevin has requested that you advise him on what his HST remittance should be for the October to December quarter. Details of transactions, excluding HST, between October and December are: Revenues $30,000 Expenses: Salaries $ 7,000 Proprietor’s drawings 11,000 Office supplies 500 Rent 3,000 The HST that is to be remitted for the October to December quarter is: Question 5 options: A. $1,105. B. $2,535. C. $3,445. D. $3,835. E. None of the above.

Redistribution of wealth, through tax and spending policies that aim to reduce economic inequalities.

: True False

Explain how deficit spending could be a burden to future generations. (Three reasons) Chapter 14

23. Describe the interaction between the multiplier and accelerator following an increase in government spending.（30 marks）