AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $34 per job, and the actual mobile lab operating expenses for February were $9,640. The company expected to work 150 jobs in February, but actually worked 152 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February

Consider two manufacturing companies of electrical devices with identical business fundamentals. Everything is the same for these two companies (same operations, same economic fundamentals, same suppliers, same customers and same managers). The only difference is in the way the two companies choose to report their
financials.
Company A follows a conservative financial reporting strategy by choosing accounting policies that report the lowest revenue and assets and the highest expense and liabilities.
Company B follows an aggressive financial reporting strategy by choosing accounting policies that report the highest revenue and assets and the lowest expense and liabilities.
Required:
(a) Explain how you can discover information that one company is being conservative in financial reporting and the other company is being aggressive in
financial reporting. You are required to give specific examples that are directly relevant to the context of these two companies being manufacturing companies of electrical devices.
(b) Explain how you could use this newly discovered information that a company is conservative or aggressive in reporting in active investing.

Using the degree of operating leverage, calculate the change in profit caused by a 14 percent increase in sales revenue. (Round your intermediate values to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%.)). I NEED THIS RIGHT BADLY!!

Colah Company purchased $1,400,000 of Jackson, Inc., 7% bonds at par on July 1, 2021, with interest paid semi-annually. Colah determined that it should account for the bonds as an available-for-sale investment. At December 31, 2021, the Jackson bonds had a fair value of $1,640,000. Colah sold the Jackson bonds on July 1, 2022 for $1,260,000.

Required:
1. Prepare Colah’s journal entries for the following transactions:

1. The purchase of the Jackson bonds on July 1.
2. Interest revenue for the last half of 2021.
3. Any year-end 2021 adjusting entries.
4. Interest revenue for the first half of 2022.
5. Any entries necessary upon sale of the Jackson bonds on July 1, 2022, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale.

2. Complete the following table to show the effect of the Jackson bonds on Colah’s net income, other comprehensive income, and comprehensive income for 2021, 2022, and cumulatively over 2021 and 2022.

Prepare Business Model Canvas for your business(Business Plan: Start of an “E-Commerce” for the Central Asia). This must be a maximum 2 pages submission – YOUR BMC should answer the following 1.KEY PARTNERS(list your partners if the project is to implemented in Central Asia ) 2. Key Activities (describe your key activities) 3. Value Proposition ( insert your value proposition ) 4.CUSTOMER RELATIONSHIPS (describe how you plan to establish and manage the relationship between the customer and your brand ) 5.CUSTOMER SEGMENTS (describe your target customer segment ) 6.KEY RESOURCES(list the key resources available to you ) 7.CHANNELS (describe 1) how you plan to acquire customers, 2) how you plan to deliver your value proposition to them and 3) how you plan to communicate with your customers ) 8.COST STRUCTURE(Describe your cost structure ) 9. Revenue streams(describe your revenue streams)

Problem 1-1A

Fredonia Repair Inc. was started on May 1. A summary of May transactions is presented below.

1. Stockholders invested $15,500 cash in the business in exchange for common stock.

2. Purchased equipment for $5,500 cash.

3. Paid $200 cash for May office rent.

4. Paid $600 cash for supplies.

5. Incurred $300 of advertising costs in the Beacon News on account.

6. Received $5,000 in cash from customers for repair service.

7. Declared and paid a $1,000 cash dividend.

8. Paid part-time employee salaries $1,000.

9. Paid utility bills $140.

10. Performed repair services worth $990 on account.

11. Collected cash of $140 for services billed in transaction (10).

Part 1.

Prepare a tabular analysis of the transactions. Revenue is called Service Revenue.

Part 2.

From an analysis of the Retained Earnings columns, compute the net income or net loss for May.

2. The Larson Company prepared the following income statement using the cash basis of
accounting:

THE LARSON COMPANY
Income Statement, Cash Basis
Year Ended December 31, 2017
Service revenue $460,000
Expenses 220,000
Profit $240,000

Additional data:
1. Service revenue includes $40,000 collected from a customer for whom services
were provided in 2016, and who was billed in 2016.
2. There are an additional $15,000 of expenses that were incurred on account, for
which payment will not be made until 2018.
3. Depreciation on a company automobile for the year amounted to $7,000. This
amount is not included in the expenses above.
4. On December 1, 2017, paid $1,600 for two months' rent (December and January).
This amount is included in the expenses above.

Instructions
a) Prepare Larson's income statement on the accrual basis in conformity with
generally accepted accounting principles. Show calculations and explain each change.
b) Explain which basis (cash or accrual) provides a better measure of profit.

1. The condensed income statement of the Holiday Inn (HI) in the Excel file, please use the information to answer the following questions:

1. Compute the CMR for each department (Room, Food, & Other). (3 points)
2. Compute the HI's weighted CMR. Please use the simple way to calculate the CMRw, which is using the total revenue and total variable costs (1 points)
3. Compute the HI's breakeven point. (1 point)
4. If the HI want to make $500,000 of net income, what must the rooms department sales equal? (5 points)

   The condensed income statement of the Holiday Inn (HI) is as follows:
   	Revenue	VC	FC	NI
   Room	$        1,000,000	$      200,000	$      100,000	$      700,000
   Food	$           500,000	$      200,000	$      100,000	$      200,000
   Other	$           300,000	$      100,000	$        50,000	$      150,000
   Total department income				$   1,050,000
   Other Variable expenses*				$      100,000
   Other Fixed Costs**				$      600,000
   Pretax income				$      350,000
   Income taxes				$        70,000
   Net income				$      280,000
   * Rent (10%of room sales)
   ** Includes depreciation and amortization of $150,000

Ethics Case：

President Franklin D. Roosevelt once said, “I am wholly unable to figure out the amount of tax,” and wrote to the Federal Commissioner of Revenue, “may I ask that [the agency] let me know the amount of the balance due.” When a friend of FDR was ordered to pay $420,000 in tax penalties, the President called the Commissioner within earshot of reporters and told him to cut the penalties to $3,000. One listener, journalist David Brinkley, recalled years later: “Nobody seemed to think it was news or very interesting.” Evaluate the President’s comments and actions as if you were a Tax Professional.

1. Explain what is the Federal Commissioner of Revenue?

2. Explain whether it is Legal for a president to ask the commissioner to cut penalties today? Please focus on the legality only and not make your response a political argument.

3. Explain whether it is Ethical for a president to ask the commissioner to cut penalties today? Please focus on the ethics only and not make your response a political argument.