Exercise 12-5 Net Cash Provided by Operating Activities [LO12-2]

Code needed in C++, make changes to the file provided (18-1, has 3 files)

Chapter 18 Stacks and Queues

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capacity is just 5

1. push 6 numbers on the stack

2. catch the overflow error in a catch block

3. pop one element, which means your capacity is now down to 4

4. push the element that was rejected earlier

5. verify your entire stack by popping to show the new numbers.

IntStack.h

#include <memory>

using namespace std;

class IntStack

{

unique_ptr<int[]>stackArray;

int capacity;

int top;

public:

// Constructor

IntStack(int capacity);

// Member functions

void push(int value);

void pop(int &value);

bool isEmpty() const;

// Stack Exceptions

class Overflow {};

class Underflow {};

};

IntStack.cpp

ZOOM

#include "intstack.h"

//************************************

// Constructor *

//************************************

IntStack::IntStack(int capacity)

{

stackArray = make_unique<int[]>(capacity);

this->capacity = capacity;

top = 0;

}

//***********************************

// Adds a value to the stack *

//***********************************

void IntStack::push(int value)

{

if (top == capacity) throw IntStack::Overflow();

stackArray[top] = value;

top++;

}

//****************************************

// Determines whether the stack is empty *

//****************************************

bool IntStack::isEmpty() const

{

return top == 0;

}

//************************************************

// Removes a value from the stack and returns it *

//************************************************

void IntStack::pop(int &value)

{

if (isEmpty()) throw IntStack::Underflow();

top--;

value = stackArray[top];

}

pr18-01.cpp

// This program illustrates the IntStack class.

#include "intstack.h"

#include <iostream>

using namespace std;

int main()

{

IntStack stack(5);

int values[] = { 5, 10, 15, 20, 25 };

int value;

cout << "Pushing...\n";

for (int k = 0; k < 5; k++)

{

cout << values[k] << " ";

stack.push(values[k]);

}

cout << "\nPopping...\n";

while (!stack.isEmpty())

{

stack.pop(value);

cout << value << " ";

}

cout << endl;

return 0;

}

E10-5 Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Assets, Hurdle Rate on Each [LO 10-4, 10-5]

Solano Company has sales of $780,000, cost of goods sold of $510,000, other operating expenses of $38,000, average invested assets of $2,300,000, and a hurdle rate of 12 percent.


Required:
1. Determine Solano’s return on investment (ROI), investment turnover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROI and Profit Margin percentage answer to the nearest 2 decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Investment Turnover answer to 4 decimal places.)

2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.) (Enter your ROI percentage answers to 2 decimal places, (i.e., 0.1234 should be entered as 12.34%.))

   a. Company sales and cost of goods sold increase by 30 percent.      

        

  b. Operating expenses decrease by $12,000.        
      
        

c. Operating expenses increase by 10 percent.

       

  d. Average invested assets increase by $440,000.

  e. Solano changes its hurdle rate to 18 percent.

Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2018 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 40% in all years. Any tax effects should be adjusted through the deferred tax liability account.

Fleming Home Products introduced a new line of commercial awnings in 2017 that carry a one-year warranty against manufacturer’s defects. Based on industry experience, warranty costs were expected to approximate 2% of sales. Sales of the awnings in 2017 were $4,200,000. Accordingly, warranty expense and a warranty liability of $84,000 were recorded in 2017. In late 2018, the company’s claims experience was evaluated and it was determined that claims were far fewer than expected: 1% of sales rather than 2%. Sales of the awnings in 2018 were $4,700,000, and warranty expenditures in 2018 totaled $106,925.

On December 30, 2014, Rival Industries acquired its office building at a cost of $1,140,000. It was depreciated on a straight-line basis assuming a useful life of 40 years and no salvage value. However, plans were finalized in 2018 to relocate the company headquarters at the end of 2022. The vacated office building will have a salvage value at that time of $770,000.

Hobbs-Barto Merchandising, Inc., changed inventory cost methods to LIFO from FIFO at the end of 2018 for both financial statement and income tax purposes. Under FIFO, the inventory at January 1, 2018, is $760,000.

At the beginning of 2015, the Hoffman Group purchased office equipment at a cost of $407,000. Its useful life was estimated to be 10 years with no salvage value. The equipment was depreciated by the sum-of-the-years’-digits method. On January 1, 2018, the company changed to the straight-line method.

In November 2016, the State of Minnesota filed suit against Huggins Manufacturing Company, seeking penalties for violations of clean air laws. When the financial statements were issued in 2017, Huggins had not reached a settlement with state authorities, but legal counsel advised Huggins that it was probable the company would have to pay $270,000 in penalties. Accordingly, the following entry was recorded:

Late in 2018, a settlement was reached with state authorities to pay a total of $427,000 in penalties.

At the beginning of 2018, Jantzen Specialties, which uses the sum-of-the-years’-digits method, changed to the straight-line method for newly acquired buildings and equipment. The change increased current year net earnings by $522,000.

Required:
For each situation:
1. Identify the type of change.
2. Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described.
  

The following changes took place last year in Pavolik Company’s balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 5 D Accounts payable $ 35 I Accounts receivable $ 110 I Accrued liabilities $ 4 D Inventory $ 70 D Income taxes payable $ 8 I Prepaid expenses $ 9 I Bonds payable $ 150 I Long-term investments $ 6 D Common stock $ 80 D Property, plant, and equipment $ 185 I Retained earnings $ 54 I Accumulated depreciation $ 60 I D = Decrease; I = Increase. Long-term investments that cost the company $6 were sold during the year for $16 and land that cost $15 was sold for $9. In addition, the company declared and paid $30 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock. The company’s income statement for the year follows: Sales $ 700 Cost of goods sold 400 Gross margin 300 Selling and administrative expenses 184 Net operating income 116 Nonoperating items: Loss on sale of land $ (6 ) Gain on sale of investments 10 4 Income before taxes 120 Income taxes 36 Net income $ 84 The company’s beginning cash balance was $90 and its ending balance was $85. Required: 1. Use the indirect method to determine the net cash provided by operating activities for the year. 2. Prepare a statement of cash flows for the year.

Discuss two hardware devices from 10 years ago that have become obsolete. Explain how changes in technology contributed to each item’s obsolescence. Provide specific examples to illustrate your ideas.

Think about current hardware commonly used in organizations and predict which device may be obsolete 10 years from now. Justify your selection using reasons, facts, and examples.

The following changes took place last year in Pavolik Company’s balance sheet accounts:

D = Decrease; I = Increase.

Long-term investments that cost the company $13 were sold during the year for $23 and land that cost $22 was sold for $16. In addition, the company declared and paid $30 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock.

The company’s income statement for the year follows:

The company’s beginning cash balance was $111 and its ending balance was $99.

Required:

Use the direct method to convert the company's income statement to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.)

CAN YOU PLEASE PROVIDE ME WITH STEP BY STEP SOLUTIONS PLEASE AND THANK YOU!

Described below are three independent and unrelated situations involving accounting changes. Each change occurs during 2018 before any adjusting entries or closing entries are prepared. On December 30, 2014, Rival Industries acquired its office building at a cost of $11,400,000. It has been depreciated on a straight-line basis assuming a useful life of 40 years and no residual value. Early in 2018, the estimate of useful life was revised to 28 years in total with no change in residual value. At the beginning of 2014, the Hoffman Group purchased office equipment at a cost of $612,000. Its useful life was estimated to be 8 years with no residual value. The equipment has been depreciated by the sum-of-the-years’-digits method. On January 1, 2018, the company changed to the straight-line method. At the beginning of 2018, Jantzen Specialties, which uses the sum-of-the-years’-digits method, changed to the straight-line method for newly acquired buildings and equipment. The change increased current year net income by $585,000. Required: 1. Identify the type of change. 2. Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described. (Ignore income tax effects.)

Described below are three independent and unrelated situations involving accounting changes. Each change occurs during 2021 before any adjusting entries or closing entries are prepared.

1. On December 30, 2017, Rival Industries acquired its office building at a cost of $12,000,000. It has been depreciated on a straight-line basis assuming a useful life of 40 years and no residual value. Early in 2021, the estimate of useful life was revised to 28 years in total with no change in residual value.
2. At the beginning of 2017, the Hoffman Group purchased office equipment at a cost of $275,000. Its useful life was estimated to be 10 years with no residual value. The equipment has been depreciated by the straight-line method. On January 1, 2021, the company changed to the double-declining-balance method.
3. At the beginning of 2021, Jantzen Specialties, which uses the straight-line method, changed to the double-declining-balance method for newly acquired vehicles. The change decreased current year net income by $645,000

Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2021 related to the situation described. (Ignore income tax effects.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1) Part A: How do we measure labor productivity? How do changes in labor productivity affect the U.S. standard of living? Does an increase in labor productivity always leads to an increase in standard of living, explain?

Part B:  According to the life-cycle hypothesis, what is the typical pattern of saving and spending for an individual over his or her lifetime? What impact does this pattern have on the saving rate in the overall economy?