On December 31, 2017, Dow Steel Corporation had 660,000 shares of common stock and 36,000 shares of 10%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $460,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2018.

On February 28, 2018, Dow sold 56,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2018, was $2,400,000. The income tax rate is 40%.
  
Required:
Compute Dow's earnings per share for the year ended December 31, 2018. (Do not round intermediate calculations. Enter your answers in thousands.)

At the end of its first year of operations on December 31, 2018, the Skyway Company reported taxable income of $30,000 and a pretax financial loss of $40,000. Differences between taxable income and pretax financial income included:Environmental fine from the EPA = $20,000Warranty costs expensed for accounting purposes in excess of cash paid for warranty costs = $50,000(Those warranty costs are expected to be paid in 2019.) The enacted tax rates for 2018 and 2019 are 30% and 34%, respectively.REQUIRED:(a) Prepare the income tax journal entry for the Skyway Company on December 31, 2018, assuming that it is more likely than not the deferred tax asset will be realized.(b) Prepare the income tax journal entry for the Skyway Company on December 31, 2018, assuming that it is more likely than not that 40% of the deferred tax asset will not be realized.

The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2018, the allowance account had a credit balance of $75,000. Credit sales for 2018 totaled $2,400,000 and the year-end accounts receivable balance was $490,000. During this year, $73,000 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal year ends on December 31.

Required:
1. Does this situation describe a loss contingency?
2. What is the bad debt expense that Manda Panda should report in its 2018 income statement?
3. Prepare the appropriate journal entry to record the contingency.
4. Complete the table below to calculate the net realizable value Manda Panda should report in its 2018 balance sheet.

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $110 million of 10% bonds, dated January 1, on January 1, 2018. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 12%. The price paid for the bonds was $94 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $100 million. Required: 1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). 4. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet? 5. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment?

The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2018, the allowance account had a credit balance of $75,000. Credit sales for 2018 totaled $2,400,000 and the year-end accounts receivable balance was $490,000. During this year, $73,000 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal year ends on December 31.

Required:
1. Does this situation describe a loss contingency?
2. What is the bad debt expense that Manda Panda should report in its 2018 income statement?
3. Prepare the appropriate journal entry to record the contingency.
4. Complete the table below to calculate the net realizable value Manda Panda should report in its 2018 balance sheet.

Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $183,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $651,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,020,000 in total. Seida's January 1, 2018 book value equaled $1,870,000, although land was undervalued by $136,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an 8-year remaining life. During 2018, Seida reported income of $315,000 and declared and paid dividends of $106,000. Prepare the 2018 journal entries for Milani related to its investment in Seida.

On December 31, 2017, when its accounts receivable were $270,000 and its account Allowance for Doubtful Accounts had an unadjusted debit balance of $1,800, Canarie Corp. estimated that $15,100 of its accounts receivable would become uncollectible, and it recorded the bad debts adjusting entry. On May 11, 2018, Canarie determined that Fei Ya Cheng’s account was uncollectible and wrote off $1,700. On November 12, 2018, Cheng paid the amount previously written off. Prepare the required journal entries to record each of the above transactions. What is the carrying amount of the receivables on (1) December 31, 2017; (2) May 11, 2018; and (3) November 12, 2018, assuming that the total amount of accounts receivable of $270,000 is unchanged on each of these three dates except for any changes recorded above

Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2018. At January 1, 2018, the corporation had outstanding 85.0 million common shares, $2.5 par per share.

Required:
1. Prepare the journal entries to record the transactions that affected Brenner-Jude's retained earnings during 2018 based on the information provided.
2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2018.

You are the loan manager for a local commercial bank and was approached by the management of Intel Corp.for a $150,000 loan to be used in the expansion of its business.  You requested and have received the following financial information to be used as the basis for your decision:

A. Please calculate the Times Interest Earned ratio for FY 2017, 2018, and 2019.

Formula:   EBIT + Interest Expense + Income Tax Expense

Interest Expense

B. Based on your calculation in (A), was the ratio good or bad between FY 2017 to FY 2018, and between FY 2018 to FY 2019? Please explain in two paragraphs.

The MBA 802 Company reported 2018 net income of $9 million and depreciation of $3.5 million. The top part of the MBA802’s 2017 and 2018 balance sheets is listed as follows (in millions of dollars).

                                                                2017      2018                  

Current assets:                                                                                                                                                                       

   Cash                                                       $18                 $30  

   Accounts receivable                                 20                   24   

   Inventory                                                  10                   11      

               Total Current Assets:                  $48                 $65

Current Liabilities:

Accrued wages and taxes                    $    5                $11

Accounts payable                                     25                  29                   

Other Accrued Liabilities                          18                  25                     

                 Total Current Liabilities:           $48                $65           

What is the 2018 net cash flow from operating activities for the MBA802 Company? (Display the answer as noted below - If you calculated the answer as being $12.3 million, input the answer in the following format  12.3)