Questions
Midlands Inc. had a bad year in 2019. For the first time in its history, it...

Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 77,000 units of product: net sales $1,540,000; total costs and expenses $1,964,000; and net loss $424,000. Costs and expenses consisted of the following.

Total

Variable

Fixed

Cost of goods sold $1,299,600 $773,000 $526,600
Selling expenses 513,400 93,000 420,400
Administrative expenses 151,000 58,000 93,000
$1,964,000 $924,000 $1,040,000


Management is considering the following independent alternatives for 2020.

1. Increase unit selling price 25% with no change in costs and expenses.
2. Change the compensation of salespersons from fixed annual salaries totaling $198,000 to total salaries of $38,005 plus a 5% commission on net sales.
3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50.


(a) Compute the break-even point in dollars for 2019.

Break-even point

$Enter the break-even point in dollars rounded to 0 decimal places


(b) Compute the break-even point in dollars under each of the alternative courses of action for 2020.

Break-even point

1. Increase selling price

$Enter a dollar amount

2. Change compensation

$Enter a dollar amount

3. Purchase machinery

$Enter a dollar amount


Which course of action do you recommend?

In: Accounting

For the year 2009, the table below gives the percent of people living below the poverty...

For the year 2009, the table below gives the percent of people living below the poverty line in the 26 states east of the Mississippi River. Answer the following questions based on this data. State Percent Alabama 7.5 Connecticut 7.9 Delaware 14.9 Florida 13.2 Georgia 12.1 Illinois 10.0 Indiana 9.9 Kentucky 11.9 Maine 13.3 Maryland 10.9 Massachusetts 7.9 Michigan 15.8 Mississippi 9.1 State Percent New Hampshire 14.6 New Jersey 8.3 New York 9.1 North Carolina 12.1 Ohio 13.6 Pennsylvania 10.5 Rhode Island 8.2 South Carolina 12.5 Tennessee 10.0 Vermont 7.3 Virginia 10.4 West Virginia 10.5 Wisconsin 16.1 Identify any outliers that exist in the data using the 1.5xIQR rule discussed in the text/PowerPoint Slides. (3 pts.)

In: Statistics and Probability

Jake deposits 5000 at the end of each year in an investment fund earning an annual...

Jake deposits 5000 at the end of each year in an investment fund earning an annual effective interest rate of 11.6%. The interest from this investment fund is paid at the end of each year into a savings account which earns an annual effective interest rate of 2.1%.

Find Jake's combined total accumulated value at the end of 16 years.

In: Finance

Presented below are a number of balance sheet items for Metlock, Inc., for the current year,...

Presented below are a number of balance sheet items for Metlock, Inc., for the current year, 2017.

Goodwill $  129,170 Accumulated Depreciation-Equipment $  292,100
Payroll Taxes Payable 181,761 Inventory 243,970
Bonds payable 304,170 Rent payable (short-term) 49,170
Discount on bonds payable 15,100 Income taxes payable 102,532
Cash 364,170 Rent payable (long-term) 484,170
Land 484,170 Common stock, $1 par value 204,170
Notes receivable 449,870 Preferred stock, $10 par value 154,170
Notes payable (to banks) 269,170 Prepaid expenses 92,090
Accounts payable 494,170 Equipment 1,474,170
Retained earnings ? Debt investments (trading) 125,170
Income taxes receivable 101,800 Accumulated Depreciation-Buildings 270,300
Notes payable (long-term) 1,604,170 Buildings 1,644,170


Prepare a classified balance sheet in good form. Common stock authorized was  400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of debt investments (trading) are the same. (List Current Assets in the order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment.)

METLOCK, INC.
Balance Sheet

choose the accounting periodchoose the accounting period  December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017

Assets

select an opening name for subsection oneselect an opening name for subsection one  Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

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select a closing name for subsection oneselect a closing name for subsection one  Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

$ enter a total amount for subsection one

select an opening name for subsection twoselect an opening name for subsection two  Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

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enter a dollar amount

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select between addition and deductionselect between addition and deduction  AddLess:  enter a balance sheet item

enter a dollar amount

enter a subtotal of the two previous amounts

enter a balance sheet item

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select between addition and deductionselect between addition and deduction  AddLess:  enter a balance sheet item

enter a dollar amount

enter a subtotal of the two previous amounts

enter a total amount for subsection two

select an opening name for subsection threeselect an opening name for subsection three  Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

enter a balance sheet item

enter a dollar amount

select a closing section name for this part of the balance sheetselect a closing section name for this part of the balance sheet  Capital StockCurrent AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity

$ enter a total amount for this part of the balance sheet

Liabilities and Stockholders' Equity

select an opening name for subsection oneselect an opening name for subsection one  Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

enter a balance sheet item

$ enter a dollar amount

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select a closing name for subsection oneselect a closing name for subsection one  Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

$ enter a total amount for subsection one of the second part of the balance sheet

select an opening name for subsection twoselect an opening name for subsection two  Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

enter a balance sheet item

enter a dollar amount

enter a balance sheet item

$ enter a dollar amount

select between addition and deductionselect between addition and deduction  AddLess:  enter a balance sheet item

enter a dollar amount

enter a subtotal of the two previous amounts

enter a balance sheet item

enter a dollar amount

enter a total amount for subsection two of the second part of the balance sheet

select a closing name for section oneselect a closing name for section one  Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

enter a total amount for this section of the balance sheet

select an opening name for section twoselect an opening name for section two  Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

select an opening name for subsection oneselect an opening name for subsection one  Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

enter a balance sheet item

enter a dollar amount

enter a balance sheet item

enter a dollar amount

enter a total amount for subsection one of the second part of the balance sheet

enter a balance sheet item

enter a dollar amount

select a closing name for section twoselect a closing name for section two  Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

enter a total amount for this section of the balance sheet

select a closing name for this part of the balance sheetselect a closing name for this part of the balance sheet  Capital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesRevenuesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

$ enter a total amount for this part of the balance sheet

List of Accounts

In: Accounting

At the end of its first year of operations on December 31, 2018, the Hondo Company...

At the end of its first year of operations on December 31, 2018, the Hondo Company reported the following information for the year: (Assume any deferred tax assets are more likely than not to be realized).

Pretax income for financial reporting purposes

$360,000

Municipal bond interest revenue on State of Texas bonds

12,000

Warranty expense for financial reporting purposes

Warranty repair costs during period

30,000

10,000

Excess of MACRS Depreciation for tax purposes above straight line for financial reporting purposes

36,000

Officer’s life insurance premium expense

4,000

Sales with an accrual basis profit for 2018

Installment basis profit for tax reportable for 2018*

50,000

20,000

Fines for pollution violations

5,000

Subscription revenues received in advance of product delivery

15,000

The income tax rate for current and future years

30%

*Remainder reportable in 2019

Required:

a. Determine taxable income

b. Prepare the income tax journal entr(ies) for the company at the end of 2018 including both current and deferred taxes

c. What was total income tax expense for 2018 and show how it would be presented in the income statement starting with income before taxes for financial reporting purposes.

In: Accounting

The trial balance for Terry’s Auto Shop as of January 1, Year 2, follows:

 

The trial balance for Terry’s Auto Shop as of January 1, Year 2, follows:

Account Titles Debit Credit
Cash $ 14,760        
Inventory   3,170        
Common Stock       $ 7,310  
Retained Earnings         10,620  
Total $ 17,930   $ 17,930  
 


The following events affected the company during the Year 2 accounting period:

Purchased merchandise on account that cost $4,140.

The goods in Event 1 were purchased FOB shipping point with freight cost of $215 cash.

Returned $405 of damaged merchandise for credit on account.

Agreed to keep other damaged merchandise for which the company received an $250 allowance.

Sold merchandise that cost $2,630 for $13,000 cash.

Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $150 cash.

Paid $2,840 on the merchandise purchased in Event 1.

Paid $8,600 cash for operating expenses.

c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.)

Complete this question by entering your answers in the tabs below.

Income Statement

Balance Sheet

Statement of Cash Flows

In: Accounting

Northern Illinois Manufacturing is preparing its budget for the coming year. The first step is to...

Northern Illinois Manufacturing is preparing its budget for the coming year. The first step is to plan for the first quarter of that coming year. Northern Illinois gathered the following information from its managers.

Sales:

Actual unit sates for November

113,500

Actual unit sales for December

103,100

Expected unit sales for January

114,000

Expected unit sales for February

113,500

Expected unit sales for March

116,000

Expected unit sales for April

126,000

Expected unit sales for May

138,500

Unit selling price

$12

Northern Illinois wants to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31 totaled 183,780.

Direct Materials:

The product uses metal, plastic, and rubber. In total, each unit requires 2 pounds of material at an average cost of 0.75 per pound.

Northern Illinois likes to keep 5% of the materials needed for the next month in its ending inventory. Payment for materials is made within 15 days. 50% is paid in the month of purchase and 50% is paid in the month after purchase. Accounts Payable on December 31 totaled $120,595. Raw materials on December 31 totaled 11,295 pounds.

Direct Labor:

Labor requires 12 minutes per unit for completion and is paid at a rate of $18 per hour.

Manufacturing Overhead:

Indirect materials

30 cents per labor hour

Indirect labor

50 cents per labor hour

Utilities

45 cents per labor hour

Maintenance

25 cents per labor hour

Salaries

$52,000 per month

Depreciation

$16,800 per month

Property taxes

$2,675 per month

Insurance

$2,200 per month

Janitorial

$1,800 per month

Selling and Administrative Expenses:

Variable selling and administrative cost per unit is $2.40.

Fixed selling and administrative costs per month are:

Advertising

$15,000 per month

Insurance

$1,400 per month

Salaries

$72,000 per month

Depreciation

$2,500 per month

Other fixed costs

$3,000 per month

Other Information:

The cash balance on December 31 totaled $220,500, but management has decided that it wants to maintain a cash balance of at least $750,000 beginning January 31. Dividends are paid each month at the rate of $2.50 per share for 5,000 shares outstanding. The company has an open line of credit with the First National Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 8% interest. Northern Illinois borrows on the first day of the month and repays on the last day of the month. Reserve repayment, if required, until Northern Illinois can pay the entire amount. A $250,000 equipment purchase is planned for February.

Instructions (Do all parts):

Note: All budgets and schedules should be prepared by month for the first quarter (January, February, and March). Round all figures to the nearest dollar. For labor hours round to whole hours.

a. Prepare a sales budget.

b. Prepare a production budget.

c. Prepare a direct materials budget.

d. Prepare a direct labor budget.

e. Prepare a manufacturing overhead budget.

f. Prepare a selling and administrative budget.

g. Prepare a schedule for expected cash collections from customers.

h. Prepare a schedule for expected payments for materials purchases.

i. Prepare a cash budget.

In: Accounting

Note: This problem is for the 2018 tax year. Logan B. Taylor is a widower whose...

Note: This problem is for the 2018 tax year.

Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2016. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2018, he had the following receipts:

Salary $ 80,000
Interest income—
   Money market account at Omni Bank $300
   Savings account at Boone State Bank 1,100
   City of Springfield general purpose bonds 3,000 4,400
Inheritance from Daniel 60,000
Life insurance proceeds 200,000
Amount from sale of St. Louis lot 80,000
Proceeds from estate sale 9,000
Federal income tax refund (for 2017 tax overpayment) 700

Logan inherited securities worth $60,000 from his uncle, Daniel, who died in 2018. Logan also was the designated beneficiary of an insurance policy on Daniel's life with a maturity value of $200,000. The lot in St. Louis was purchased on May 2, 2013, for $85,000 and held as an investment. As the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5, 2018, for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (e.g., camper, boat, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9,000 he received and has declined or stayed the same in value since Sara and Daniel died.

Logan's expenditures for 2018 include the following:

Medical expenses (including $10,500 for dental) $11,500
Taxes—
   State of Missouri income tax (includes withholdings during 2018) $4,200
       Property taxes on personal residence 4,500 8,700
Interest on home mortgage (Boone State Bank) 5,600
Contribution to church (paid pledges for 2018 and 2019) 4,800

Logan and his dependents are covered by his employer's health insurance policy for all of 2018. However, he is subject to a deductible, and dental care is not included. The $10,500 dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him (see below). Logan normally pledges $2,400 ($200 per month) each year to his church. On December 5, 2018, upon the advice of his pastor, he prepaid his pledge for 2019.

Logan's household, all of whom he supports, includes the following:

Social Security Number Birth Date
Logan Taylor (age 48) 123-45-6787 08/30/1970
Helen Taylor (age 70) 123-45-6780 01/13/1948
Asher Taylor (age 23) 123-45-6783 07/18/1995
Mia Taylor (age 22) 123-45-6784 02/16/1996

Helen receives a modest Social Security benefit. Asher, a son, is a full-time student in dental school and earns $4,500 as a part-time dental assistant. Mia, a daughter, does not work and is engaged to be married.

Federal income tax of $4,500 was withheld from Logan's wages.

Required:
Determine the Federal income tax for 2018 for Logan by providing the following information that be reported on Form 1040, Schedule A Schedule D, and Form 8849. Complete the tax advice letter.

Make realistic assumptions about any missing data.

If Logan has any overpayment on his income tax, he wants the refund sent to him.

Assume that the proper amounts of Social Security and Medicare taxes were withheld.

Enter all amounts as positive numbers.

If an amount box does not require an entry or the answer is zero, enter "0".

When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.

2. Calculate taxable gross income.
$

3. Calculate the total adjustments for AGI.
$

4. Calculate adjusted gross income.
$

5. Calculate the greater of the standard deduction or itemized deductions.
$

6. Calculate total taxable income.
$

7. Calculate the income tax liability.
$

8. Calculate the total tax credits available.
$

9. Calculate total withholding and tax payments.
$

10. Calculate the amount overpaid (refund):
$

11. Calculate the amount of taxes owed:
$

In: Accounting

The DoNotMissSnow Company is evaluating an asset that may increase sales by $120,000 every year for...

The DoNotMissSnow Company is evaluating an asset that may increase sales by $120,000 every year for 4 years. There is no expected change in net operating working capital. The company's cost of capital is 6%. The proposed asset costs $400,000, will require $20,000 to modify for operations, and falls in the 3-year class MACRS for depreciation rates: .33, .45, .15, and .07 for years 1 through 4, respectively. At the end of the 4 years, it is expected that the asset may sell for $30,000. The company's tax rate is 21%. a) What is the initial outlay for this project? b) What are the operating cash flows in Years 1 through 4? c) As part of the terminal cash flow in Year 4, what is the after-tax salvage value of the asset? d) What is the net present value of this proposed asset investment? Should it be accepted or rejected?

In: Finance

. Mr. Smith, a 52-year old patient, is admitted to the coronary care unit with the...

. Mr. Smith, a 52-year old patient, is admitted to the coronary care unit with the diagnosis of acute inferior myocardial infarction. The patient has a history of smoking two packs per day of cigarettes for 35 years, and he drinks a six-pack of beer on weekend nights, but does not drink the rest of the week. He is the sole financial support for his family. He is a consultant for a company and is out of town during week days. Over the past year, Mr. Smith has gained 20 pounds. He is 5 foot 6 inches, weighing 200 pounds. His diet consists mostly of fast food. He rarely exercises. His wife cares for their three teenage children. The eldest son, 17 years of age, totaled the family car when drinking and driving 2 days ago and he is in the local children’s hospital in the intensive care unit in critical condition. Mr. Smith developed chest pain and slumped over in his chair during an argument with his wife about their teenage daughter, who is 15 years of age and wanted to get birth control pills. The wife is in the waiting room while the nurses settle Mr. Smith into his room. The youngest son, 13 years of age, is at a friend’s house. The teenage daughter is staying at the bedside of the critically ill eldest son. The wife blames her eldest son for her husband’s heart attack and told the emergency department nurse that she does not care to see her son at all. (Learning Objectives 6, 10, and 11) What maladaptive responses to stress may have contributed to Mr. Smith’s development of an illness? Based on the case study, what family assessment data may be used to determine coping strategies being currently used by the family in crisis? What nursing interventions should be used to promote effective coping for the patient and his family?

In: Nursing