a) Who are the key stakeholders accounting and finance teams communicate with? How does the communication change if a company is privately held vs public?
b) How does a classified income statement and balance sheet allow us to interpret a company's results? What are some key metrics or KPI's we would be interested in?
In: Accounting
The following details are for questions 24–26. Each individual question will appear below the details.
The Not-too-tough company started its operation in 2018. Its balance sheet for December 31, 2018, showed the following account balances (there were no other accounts listed, numbers are in thousands):
|
Assets |
2019 |
|
Cash and cash equivalents |
400 |
|
Inventory |
59 |
|
Accounts receivable |
90 |
|
Property, plants, and equipment |
100 |
|
Less: accumulated depreciation |
(10) |
|
Property and equipment – net |
90 |
|
Prepaid rent |
0 |
|
Total Assets |
639 |
|
Liabilities and Equity |
2019 |
|
Accounts payable |
50 |
|
Advance from customers |
40 |
|
Wages payables |
6 |
|
Paid-in capital |
350 |
|
Retained earnings |
193 |
|
Total Liabilities and Shareholders’ Equity |
639 |
During 2019 the following transactions occurred:
Rent for 24 months, starting January 1, 2019, in the amount of $48, was paid in cash.
On July 31, 2019, the company enters into a new labor contract with the employees’ union that calls for a $15 increase in wages, effective February 1, 2020.
Sales, all on credit, were $850. Collections from customers were $720.
In addition to the transactions described in item 3 above, products were shipped to the customer who paid $40 in advance (see December 31, 2018 balances). The selling price was $120, and the customer will pay the balance in early 2020.
The company purchased $550 worth of inventory, on account. Payments on accounts payable were $470.
Based on a physical count, inventory balance as of December 31, 2019 was $85. The market value of these inventories was $90.
The employees earned $54 as wages. Cash wage payments to employees were $57.
Depreciation for the year equals $15.
A dividend of $55 was declared and paid during 2019.
Question
Prepare the Balance Sheet, Income Statement and Cash Flow from operations using the indirect method.
Type your answer in the text box below. Present the answer as a list and don't worry about left or right indentation.
In: Accounting
In: Finance
Imagine you are the assistant controller in charge of general ledger accounting at Linbarger Company. Your company has a large loan from an insurance company. The loan agreement requires that the company’s cash account balance be maintained at $200,000 or more, as reported monthly. At June 30, the cash balance is $80,000. You give this update to Lisa Infante, the financial vice president. Lisa is nervous and instructs you to keep the cash receipts book open for one additional day for purposes of the June 30 report to the insurance company. Lisa says, “If we don’t get that cash balance over $200,000, we’ll default on our loan agreement. They could close us down, put us all out of our jobs!” Lisa continues, “I talked to Oconto Distributors (one of Linbarger’s largest customers) this morning. They said they sent us a check for $150,000 yesterday. We should receive it tomorrow. If we include just that one check in our cash balance, we’ll be in the clear. It’s in the mail!”
Questions
What is the accounting problem that the Linbarger Company faces?
What are the ethical considerations in this case? Provide rationale for why these are ethical considerations.
What are the negative impacts that can happen if you do not follow Lisa Infante’s instructions to wait one more day to post the balance?
Who will be negatively impacted if you do comply? Provide a rationale for why these individuals will be impacted.
What is one alternative that you could pursue in this scenario? Support your recommendations with information you learned in this class.
In: Accounting
Many part-time or evening MBA students have their tuition paid for by their employer. Is an MBA education firm-specific or general training? Given your answer, how do you explain this practice? What arrangements or contractual terms do you predict that such firms will try to impose in these cases?
In: Economics
In a simple random sample of 1600 young people, 86% had earned a high school diploma. Complete parts a through d below. a. What is the standard error for this estimate of the percentage of all young people who earned a high school diploma? .0096 nothing (Round to four decimal places as needed.) b. Find the margin of error, using a 95% confidence level, for estimating the percentage of all young people who earned a high school diploma. nothing% (Round to one decimal place as needed.) c. Report the 95% confidence interval for the percentage of all young people who earned a high school diploma. left parenthesis nothing % comma nothing % right parenthesis (Round to one decimal place as needed.) d. Suppose that in the past, 80% of all young people earned high school diplomas. Does the confidence interval you found in part c support or refute the claim that the percentage of young people who earn high school diplomas has increased? Explain. A. The interval does not support this claim. This is because 80% is not in the interval, and all values are above 80%. B. The interval supports this claim. This is because 80% is not in the interval, and all values are above 80%. C. The interval does not support this claim. This is because 80% is in the interval. D. The interval supports this claim. This is because 80% is in the interva
In: Statistics and Probability
Arthur Baxter, a manager in records retention for SWC Company, has ordered seven laptop computers for his department, even though he only has five employees. In addition to each laptop, he ordered extra copies of several software programs. When the equipment arrives, Baxter sends one of the extra laptops to his son who is a freshman at Eastern University and sells three of the original software packages to friends. What offenses could Baxter be charged with and why?
In: Accounting
Alumni donations are an important source of revenue for college and universities. If administrators could determine the factors that could lead to increases in the percentage of alumni who make a donation, they might be able to implement policies that could lead to increased revenues. Research shows that students who are more satisfied with their contact with teachers are more likely to graduate. As a result, one might suspect that smaller class sizes and lower student-faculty ratios might lead to a higher percentage of satisfied graduates, which in turn might lead to increases in the percentage of alumni who make a donation. Table 15.13 shows data for 48 national universities (America’s Best Colleges, Year 2000 Edition). The column labeled Graduation Rate is the percentage of students who initially enrolled at the university and graduated. The column labeled % of Classes Under 20 shows the percentage of classes offered with fewer than 20 students. The column labeled Student-Faculty Ratio is the number of students enrolled divided by the total number of faculty. Finally, the column labeled alumni Giving Rate is the percentage of alumni that made a donation to the university.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1. Use methods of descriptive statistics to summarize the data. 2. Develop an estimated simple linear regression model that can be used to predict the alumni giving rate, given the graduation rate. Discuss your findings. 3. Develop an estimated multiple linear regression model that could be used to predict the alumni giving rate using the Graduation Rate, % of Classes Under 20, and Student / Faculty Ratio as independent variables. Discuss your findings. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
4. Based on the results in parts 2 and 3, do you believe another regression model may be more appropriate? Estimate this model, and discuss your results. 5. What conclusions and recommendations can you derive from your analysis? What universities are achieving a substantially higher alumni giving rate than would be expected, given their Graduation Rate, % of Classes Under 20, and Student / Faculty Ratio? What universities are achieving a substantially lower alumni giving rate than would be expected, given their Graduation Rate, % of Classes Under 20, and Student / Faculty Ratio? What other independent variables could be included in the model? Please show most of your work using Excel Data Analysis Toolpak. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In: Statistics and Probability
Joyce is a single, cash-method taxpayer. On April 11, 2017, Joyce paid $ 120 state income taxes with her 2016 state income tax return. During 2017, Joyce had $ 1 comma 600 in state income taxes withheld. On April 13, 2018, Joyce paid $ 200 with her 2017 state tax return. During 2018, she had $ 2 comma 100 in state income taxes withheld from her paycheck. Upon filing her 2018 tax return on April 15, 2019, she received a refund of $ 450 for excess state income taxes withheld. Joyce had total AGI in 2018 and 2019 of $ 51 comma 000 and $ 53 comma 500, respectively. In 2018, Joyce also paid $ 10 comma 500 in qualified residence interest. ..(Click the icon to view the standard deduction schedule.). Requirement a. What is the amount of state income taxes Joyce may include as an itemized deduction for 2017? First select the appropriate labels and then calculate the 2017 itemized deduction for state income taxes. (If an input field is not used in the table leave the input field(s) empty; do not select a label or enter a zero.) 2017 itemized deduction for state income taxes
| STANDARD DEDUCTION | |||||||||||
| Filing Status | |||||||||||
| Married individuals filing joint returns and surviving spouses | $24,000 | ||||||||||
| Heads of households | 18,000 | ||||||||||
| Unmarried individuals (other than surviving spouses and heads of households) | 12,000 | ||||||||||
| Married individuals filing separate returns | 12,000 | ||||||||||
| Additional standard deduction for the aged and the blind | |||||||||||
| Individual who is married and surviving spouses | 1,300 | * | |||||||||
| Individual who is unmarried and not a surviving spouse | 1,600 | * | |||||||||
| Taxpayer claimed as dependent on another taxpayer’s return: Greater of (1) earned income plus $350 or (2) $1,050. | |||||||||||
| * These amounts are $2,600 and $3,200, respectively, for a taxpayer who is both aged and blind. | |||||||||||
In: Accounting
1. The system of using a monetary unit, such as the US dollar, to value the transaction is known as which of the following?
a. monetary measurement concept
d. separate entity concept
c. going concern assumption
d. time period assumption
2. Which of these statements is false?
a. Liabilities – Equity = Assets
b. Assets = Liabilities + Equity
c. Assets – Liabilities = Equity
d. Liabilities = Assets – Equity
3. Which of the following principles matches expenses with associated revenues in the period in which the revenues were generated?
a. expense recognition (matching) principle
b. revenue recognition principle
c. cost principle
d. full disclosure principle
4. Which of the following is the principle that a company must recognize revenue in the period in which it is earned; it is not considered earned until a product or service has been provided?
a. revenue recognition principle
b. expense recognition (matching) principle
c. cost principle
d. full disclosure principle
In: Accounting