lota Inc, an electronics retailer, just finished its first year of operations and is in the process of preparing its December 31, 2018 balance sheet. indicate that the account names and dollar amount If any) that lota would report within the current and long-term liabilities sections of its balance sheet at December 31, 2018 as a result of each transaction described below. If no liability should be recorded leave the item blank.

Question 1.

1a) On October 1, 2018 lota issued $ 8,000,000 of notes payable. The notes pay 6% interest each September 30^th and mature is installments. The first $1,000,000 installment is due September 30, 2019. List the current liability associated with this transaction.

Question 2.

1b). On October 1, 2018 lota issued $ 8,000,000 of notes payable. The notes pay 6% interest each September 30^th and mature in installments. The first $1,000,000 installment is due September 30, 2019. List long-term liabilities associated with this transaction.

Question 3.

2a) On December 31, 2018, lota issued a $ 1,400,000 short term note payable with a 5% rate of interest that due on May 31, 2019. Lota intends to refinance the note using a $900,000 long term loan from an existing line of credit that it will repay in three years. List the current liability associated with this transaction.

Question 4.

2b) On December 31, 2018, lota issued a $ 1,400,000 short term note payable with a 5% rate of interest that due on May 31, 2019. Lota intends to refinance the note using a $900,000 long term loan from an existing line of credit that it will repay in three years. List long-term liabilities associated with this transaction.

Question 5.

3. Lota sold $ 10,000 of gift cards during the first quarter of 2018 and an additional $5,000 of gift cards during the fourth quarter of 2018. By December 31, 2018, $7,000 of the gift cards sold during the first quarter had been redeemed and $3,000 of gift cards sold during the fourth quarter had been redeemed. Lota considers its gift cards to be broken after 6 months.

List the current liability associated with this transaction.

Question 6.

4. During 2018, lota sold 600 laptops for $500 each. All laptops come with a 1-year original warranty. Lota estimated warranty costs will be 3% of sales. By December 31, 2018 lota had spent $2,00 to fix or replace computer cover warranty. Lota collects a 5% sales tax on all laptops sold. Which will be remitted to the government in 2019?

[The following information applies to the questions displayed below.]

Jenna began the year with a tax basis of $30,000 in her partnership interest. Her share of partnership debt consists of $11,000 of recourse debt and $14,000 of nonrecourse debt at the beginning of the year and $11,000 of recourse debt and $18,000 of nonrecourse debt at the end of the year. During the year, she was allocated $50,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership and she has $7,000 of passive income from other sources.

a. How much of Jenna’s loss is limited by her tax basis?

b. How much of Jenna’s loss is limited by her at-risk amount?

c. How much of Jenna’s loss is limited by the passive activity loss rules?

                PROJECT A           PROJECT B

Initial Outlay      -50000   -70000

Inflow year 1      12000    13000

Inflow year 2      12000    13000

Inflow year 3      12000    13000

Inflow year 4      12000    13000

Inflow year 5      12000    13000

Inflow year 6      12000    13000

​​(​NPV, ​PI, and IRR calculations​) You are considering two independent​ projects, project A and project B. The initial cash outlay associated with project A is ​$50000​, and the initial cash outlay associated with project B is ​$70000. The required rate of return on both projects is 10 percent. The expected annual free cash inflows from each project are in the chart above.... Calculate the NPV​, PI​, and IRR for each project and indicate if the project should be accepted.

Equiptment with a ten-year estimated useful life and no slavage value is sold at the end of the third year of its useful life. How would using the striaght-line method of depreciation instead of the double-declining balance method of depreciation affact the gain on the sale of the equiptment?

1. . A project will return 15% with certainty one year from now. The initial investment is $5,000. The appropriate marginal tax rate is 42%. The equivalent tax-exempt bond yields 4% and the equivalent taxable bond yields 8%. What is the NPV of this project?
2. Consider a project with a single cash flow of $1000 which will occur 10 years from now. There is no initial cost. The cost of capital is 15%. In this case, is it worse to commit a 10% error in estimating the cash flow, or to commit a 10% error in estimating the cost of capital?

1. What is the return on total assets (assuming a 30% tax rate)? (Round percentage answer to 1 decimal place. i.e., 0.123 should be considered as 12.3%)

2. What is the return on equity? (Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%)

3. What is the book value per share at the end of this year? (Round your answer to 2 decimal places.)

4. What is the average collection period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.)

5. What is the equity multiplier? (Round your answer to 2 decimal places.)

6. What is the debt-to-equity ratio at the end of this year? (Round your answer to 2 decimal places.)

7. What is the times interest earned ratio? (Round your answer to 1 decimal place.)

8. What is the total asset turnover? (Round your answer to 2 decimal places.)

9. What is the company’s operating cycle? (Round your intermediate and final answers to 2 decimal places.)

10. What is the average sale period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.)

Please Answer all the questions.

Last year, a soft drink manufacturer had 20% of the market. In order to increase their portion of the market, the manufacturer has introduced a new flavor in their soft drinks. A sample of 400 individuals participated in the taste test and 96 indicated that they like the taste.

Suppose that the manufacturer is interested in determining if more than 20% of the population will like the new soft drink. State the null and alternative hypotheses.  

Find the standard error of the proportion

Find the critical value associated with a 2.5% significance level for this test.

se the critical value approach and determine whether the null hypothesis stated in ‘a’ above should be rejected or not at the 2.5% significance level.

1.

West Company estimates that overhead costs for the next year will be $3,300,000 for indirect labor and $900,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 96,000 machine hours are planned for this next year, what is the company's plantwide overhead rate?

Multiple Choice

$0.0229 per machine hour.

$34.38 per machine hour.

$43.75 per machine hour.

$9.38 per machine hour.

$0.1067 per machine hour.

2.

K Company estimates that overhead costs for the next year will be $3,800,000 for indirect labor and $970,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 106,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate?

Multiple Choice

$0.02 per direct labor hour.

$45.00 per direct labor hour.

$35.85 per direct labor hour.

$9.15 per direct labor hour.

$0.11 per direct labor hour.

3.

A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

Annual production and sales level of Product A1 is 9,180 units, and the annual production and sales level of Product B2 is 23,010 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing?

Multiple Choice

$7.43

$8.33

$10.00

$12.81

$4.41

4.

ake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 566,667 units are expected to be produced taking .75 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?

rev: 09_11_2017_QC_CS-99527

Multiple Choice

$11.57 per unit

$8.17 per unit

$5.61 per unit

$12.43 per unit

$10.89 per unit

5.

Flannigan Company manufactures and sells a single product that sells for $540 per unit; variable costs are $324. Annual fixed costs are $836,000. Current sales volume is $4,290,000. Compute the contribution margin per unit.

Multiple Choice

$540.

$324.

$240.

$230.

$216.

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $97 per unit, and variable expenses are $67 per unit. Fixed expenses are $834,000 per year. The present annual sales volume (at the $97 selling price) is 25,700 units.

Required:

1. What is the present yearly net operating income or loss?

2. What is the present break-even point in unit sales and in dollar sales?

3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?

4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?