In: Statistics and Probability
Jack and Jills, a retail business, has supplied the following information in relation to their actual sales in 2017 and planned sales for the first quarter of 2018.
Cash Credit Total
$ $ $
2017 Actual Sales for November 25,000 25,000 50,000
December 35,000 40,000 75,000
2018 Estimated Sales for January 15,000 20,000 35,000
February 18,000 30,000 48,000
March 22,000 40,000 62,000
Past records indicate that expected receipts collected from debtors will be:
60% in the month of sale
40% in the month following the sale
TASK
In: Accounting
QUESTION 23
According to SFAS No. 141 on business combinations:
| a. |
Either method can be used, but goodwill is recorded as a nonrecurring item |
|
| b. |
Goodwill is now outlawed |
|
| c. |
The purchase method must be used now for all acquisitions |
|
| d. |
The pooling of interests method must be used now for all acquisitions |
1 points
QUESTION 24
U.S. Steel recently acquired Marathon Oil. This is an example of a(n):
| a. |
Push-down merger |
|
| b. |
Conglomerate merger |
|
| c. |
Horizontal merger |
|
| d. |
Vertical merger |
1 points
QUESTION 25
In the first quarter 2002, AOL-Time Warner wrote off $54 billion related to their recent merger. This was because:
| a. |
The merger was restated as a pooling of interests based on SFAS No. 141 |
|
| b. |
Impaired goodwill was written off based on SFAS No. 142 |
|
| c. |
Of normal amortization of goodwill for the year |
|
| d. |
All goodwill was written off, because goodwill is no longer an asset according to SFAS No. 142 |
In: Finance
Jack and Jills, a retail business, has supplied the following information in relation to their actual sales in 2017 and planned sales for the first quarter of 2018.
Cash Credit Total
$ $ $
2017 Actual Sales for November 25,000 25,000 50,000
December 35,000 40,000 75,000
2018 Estimated Sales for January 15,000 20,000 35,000
February 18,000 30,000 48,000
March 22,000 40,000 62,000
Past records indicate that expected receipts collected from debtors will be:
60% in the month of sale
40% in the month following the sale
TASK
In: Accounting
Vu Hung is the assistant chief accountant at Lim Company, a
manufacturer of computer chips and cellular phones. The company
currently has total sales of $20 million. It is the end of the
first quarter. Vu is hurriedly trying to prepare a general ledger
trial balance so that quarterly financial statements
can be prepared and released to management and regulatory agencies.
The credits on the trial balance add up to $1,000 more than the
debits.
In order to meet the 4:00 p.m. deadline, Vu decides to force the
debits and credits into balance by adding the amount of the
difference to the Equipment account. She chose Equipment because it
is one of the larger account balances. Proportionally, it will be
the least misstated. She believes that the difference will not
affect anyone's decisions. She wishes that she had more time to
find the error, but realizes that the financial statements
are already late.
Instructions
(a) Who are the stakeholders
in this situation?
(b) What are the ethical issues involved?
(c) What are Vu's alternatives?
In: Accounting
5. ABC Company is preparing their master budget and is preparing a schedule of expected cash collections from sales for the first quarter of 2019. They expect sales in January to be $400,000, February to be $300,000, and March to be $500,000. !0% of the sales will be paid for in cash. The remainder will be charged on account. From past experience, the company knows their customers take 3 months to pay their bills in total, with 40% of a month’s sales on account collected in the month of sale, another 50% collected in the month following sale, and the remaining 10% are collected in the second month following sale. All credit sales are collected. The amount of credit sales in October 2018 totaled $600,000, November 2018 totaled $700,000, and December 2018 totaled $800,000.
January February
Show your work:
In: Accounting
In the last quarter of 2007, a group of 64 mutual funds had a mean return of 2.1% with a standard deviation of 6.5%. If a normal model can be used to model them, what percent of the funds would you expect to be in each region? Use the 68-95-99.7 rule to approximate the probabilities rather than using technology to find the values more precisely. Be sure to draw a picture first. a) Returns of negative 4.4% or less b) Returns of 2.1% or less c) Returns between negative 10.9% and 15.1% d) Returns of more than 21.6% a) The expected percentage of returns that are negative 4.4% or less is nothing %. (Type an integer or a decimal.) b) The expected percentage of returns that are 2.1% or less is nothing %. (Type an integer or a decimal.) c) The expected percentage of returns that are between negative 10.9% and 15.1% is nothing %. (Type an integer or a decimal.) d) The expected percentage of returns that are 21.6% or more is nothing %. (Type an integer or a decimal.)
In: Statistics and Probability
Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production.
1.Materials purchased on account $192,000, and factory wages incurred $87,300.
2.Materials requisitioned and factory labor used by job:
| Job Number | Materials | Factory Labor |
|---|---|---|
| A20 | $?35,240 | $18,000 |
| A21 | ??42,920 | ?22,000 |
| A22 | ??36,100 | ?15,000 |
| A23 | ??39,270 | ?25,000 |
| General factory use | ???4,470 | ??7,300 |
| $158,000 | $87,300 |
3.Manufacturing overhead costs incurred on account $49,500.
4.Depreciation on factory equipment $14,550.
5.Depreciation on the company's office building was $14,300.
6.Manufacturing overhead rate is 90% of direct labor cost.
7.Jobs completed during the quarter: A20, A21, and A23.
Instructions
Prepare entries to record the operations summarized above. (Prepare a schedule showing the individual cost elements and total cost for each job in item 7.)
In: Accounting
Two examples of massively mismanaged projects are TAURUS and the “Big Dig.” The first, formally called the London Stock Exchange Automation Project, cost $575 million before it was finally abandoned. Although most IT projects have a reputation for cost overruns, delays, and under performance, TAURUS set a new standard. But even TAURUS paled next to the biggest, most expensive public works project in U.S. history—Boston’s 15-year-long Central Artery/Tunnel Project. Called the Big Dig, this was perhaps the poorest and most felonious case of project mismanagement in decades. From a starting $2 billion budget to a final price tag of $15 billion, the Big Dig cost more than the Panama Canal, Hoover Dam, or Interstate 95, the 1,919-mile highway between Maine and Florida.
Questions 1. Explain why it faced such problems.
2. How and why do project managers allow such massive endeavors to fall into such a state?
3. What do you think are the causes?
In: Operations Management
Monty Corp. uses the periodic inventory system and had 150 units in beginning inventory at a total cost of $15,000. The company purchased 300 units at a total cost of $39,000. At the end of the year, Monty had 80 units in ending inventory.
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.)
|
FIFO |
LIFO |
Average-cost |
||||
| The cost of the ending inventory |
$ |
$ |
$ |
|||
| The cost of goods sold |
$ |
$ |
$ |
Which cost flow method would result in the highest net income?
Which cost flow method would result in inventories approximating current cost in the balance sheet?
Which cost flow method would result in Monty paying the least taxes in the first year?
In: Accounting