Use the following information to answer question 30 and 31. 2016

Revenues 12000

COGS 4000

SG&A 2000

Depreciation 500

Operating Income 5,500

Debt 20,000

30. Assume this is a cyclical company. In the last recession sales fell 15%. Assume that in 2016 COGS was 75% variable. Fill in the chart below for your downside case.

31. Assume the biggest risk to this company is price declines of the product it sells. Assume the last time this happened the price declined 20%. Fill in the chart below for your downside case.

Revenues

COGS

SG&A

Depreciation

Operating Income

Debt

Please answer 31.

Titan Football Manufacturing had the following operating results for 2016: sales = $19,810; cost of goods sold = $13,950; depreciation expense = $2,340; interest expense = $330; dividends paid = $580. At the beginning of the year, net fixed assets were $15,300, current assets were $2,970, and current liabilities were $2,040. At the end of the year, net fixed assets were $18,140, current assets were $3,340, and current liabilities were $2,130. The tax rate for 2016 was 30 percent. What is the operating cash flow? Cash flow from assets? Cash flow to creditors? and Cash flow to stockholders? Net income?

Waylander Coatings Company purchased waterproofing equipment on January 6, 2015, for $320,000. The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of $35,000. The equipment was used for 7,200 hours during 2015, 6,400 hours in 2016, 4,400 hours in 2017, and 2,000 hours in 2018.

1. Determine the amount of depreciation expense for the years ended December 31, 2015, 2016, 2017, and 2018, by (a) the straight-line method, (b) the units-of-output method, and (c) the double- declining-balance method. Also determine the total depreciation expense for the four years by each method.

Aber Company manufactures one product. On December 31, 2016, Aber adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $900,000. Inventory data are as follows: Year Inventory at year-end prices Price index (base year 2016) 2017 $1,260,000 1.05 2018 1,840,000 1.15 2019 1,900,000 1.25 Compute the inventory at December 31, 2017, 2018, and 2019, using the dollar-value LIFO method for each year. Inventory at December 31, 2017 $ Inventory at December 31, 2018 $ Inventory at December 31, 2019 $

Exercise 18-3

The comparative condensed balance sheets of Gurley Corporation are presented below.

(a)

Prepare a horizontal analysis of the balance sheet data for Gurley Corporation using 2016 as a base

Below are the reported profits and losses of Amherst Company for the past several years along with their tax rates on income reported.

                                Income                                                 Tax rate
2012                       $100,000                                              30%
2013                       $ 20,000                                               30%
2014                       $100,000                                              40%
2015                       $(350,000)                                           40%
2016                       $75,000 30%
2017                       unknown 30%

Amherst elects to use both carry back and carry forward procedures with no valuation allowance and strongly anticipates future profits to recover losses.

Record the tax effect of the above in 2015.

                                                                                                                                                Dr.                          Cr.

Show the income tax section and loss section of the income statement for 2015.

Record the tax effect of the above in 2016.
                                                                                                                                                Dr.                          Cr.

Equipment1 was purchased at the beginning of the year 2016 for $50,000 cash. No salvage/residual value. Straight-line depreciation is used over a 10-year life.

Equipment2 was also purchased at the beginning of the year for 550,000 (no salvage) 10 year life. We decided to use SL method. The equipment2 required a $5,000 repair by year-end.

Equipment3 was purchased on 6/1 for 100,000 (20,000 salvage value)., 10 year life. We decided to use SYD as a depreciation method. At 12/31/2016 it required a capital improvements of $40,000 which we signed a note to pay in 9 months.

Prepare Journal entries for all transactions

Political polling relies heavily on sampling techniques, which allow us to make inferences about an entire population based on only a portion of the population. However, the "Brexit" referendum in the United Kingdom and several elections in the United States since 2016 have called into question the accuracy of much political polling

1. What explains the inaccuracy of many pre-election polling data since 2016? Provide specific case examples.

2. What statistical techniques could be used to improve the accuracy of polling?

3. Has the value of political polling diminished? What is your personal perception of political polling?

Equipment1 was purchased at the beginning of the year 2016 for $50,000 cash. No salvage/residual value. Straight-line depreciation is used over a 10-year life.

Equipment2 was also purchased at the beginning of the year for 550,000 (no salvage) 10 year life. We decided to use SL method. The equipment2 required a $5,000 repair by year-end.

Equipment3 was purchased on 6/1 for 100,000 (20,000 salvage value)., 10 year life. We decided to use SYD as a depreciation method. At 12/31/2016 it required a capital improvements of $40,000 which we signed a note to pay in 9 months.

Prepare Journal entries for all transactions