Gray, Stone, and Lawson open an accounting practice on January 1, 2016, in San Diego, California, to be operated as a partnership. Gray and Stone will serve as the senior partners because of their years of experience. To establish the business, Gray, Stone, and Lawson contribute cash and other properties valued at $420,000, $390,000, and $195,000, respectively. An articles of partnership agreement is drawn up. It has the following stipulations:

Personal drawings are allowed annually up to an amount equal to 10 percent of the beginning capital balance for the year.

Profits and losses are allocated according to the following plan:

A salary allowance is credited to each partner in an amount equal to $7 per billable hour worked by that individual during the year.

Interest is credited to the partners’ capital accounts at the rate of 12 percent of the average monthly balance for the year (computed without regard for current income or drawings).

An annual bonus is to be credited to Gray and Stone. Each bonus is to be 10 percent of net income after subtracting the bonus, the salary allowance, and the interest. Also included in the agreement is the provision that there will be no bonus if there is a net loss or if salary and interest result in a negative remainder of net income to be distributed.

Any remaining partnership profit or loss is to be divided evenly among all partners.

Because of financial shortfalls encountered in getting the business started, Gray invests an additional $9,400 on May 1, 2016. On January 1, 2017, the partners allow Monet to buy into the partnership. Monet contributes cash directly to the business in an amount equal to a 20 percent interest in the book value of the partnership property subsequent to this contribution. The partnership agreement as to splitting profits and losses is not altered upon Monet’s entrance into the firm; the general provisions continue to be applicable.

The billable hours for the partners during the first three years of operation follow:

The partnership reports net income for 2016 through 2018 as follows:

Each partner withdraws the maximum allowable amount each year.

A. Determine the allocation of income for 2016, 2017, 2018 (1 chart for each)

B. prepare in appropriate form a statment of partners capital for the year ending dec. 31 2018

Statement of Cash Flows (Direct Method) The Sweet Company’s income statement and comparative balance sheets as of December 31 of 2016 and 2015 are presented below:

During the year, Sweet Company sold equipment for $27,000 cash that originally cost $57,000 and had $46,000 accumulated depreciation. New equipment was purchased for cash. Bonds payable and common stock were issued for cash. Cash dividends of $30,000 were declared and paid. At the end of the year, shares of treasury stock were purchased for cash. Accounts payable relate to merchandise purchases.

Required
a. Compute the change in cash that occurred during 2016.
b. Prepare a statement of cash flows using the direct method.

a. Change in Cash during 2016 $Answer AnswerIncreaseDecrease

b. Use a negative sign with cash outflow answers.

For 2016, Indigo Company initiated a sales promotion campaign that included the expenditure of an additional $39,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:

Income Statement

1. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages to one decimal place. Enter all amounts as positive numbers.

Final Question

2. Comment on the significant relationships revealed by the vertical analysis prepared in (1).

The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales by 2 percentage points. The sales promotion campaign appears to have been . While selling expenses as a percent of sales slightly, the cost was more than made up for by sales.

For 2016, Indigo Company initiated a sales promotion campaign that included the expenditure of an additional $39,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:

Income Statement

1. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages to one decimal place. Enter all amounts as positive numbers.

Final Question

2. Comment on the significant relationships revealed by the vertical analysis prepared in (1).

The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales by 2 percentage points. The sales promotion campaign appears to have been . While selling expenses as a percent of sales slightly, the cost was more than made up for by sales.

MERMED Inc. is a medical device manufacturer.

The company’s headquarters is located in Houston, Texas. It is a global leader in developing, manufacturing, selling and servicing diagnostic imaging and therapeutic medical devices used to diagnose and treat cardiovascular and other diseases. MERMED earned $300 million of revenue in 2015, while employing more than 10,000 people worldwide. One of it’s manufacturing plants is located in Dingle, Co. Kerry, Ireland. Tom Jones is the plant manager at the Dingle facility.

The Dingle site runs 12 hour shifts, 7 days a week. It has 1000 employees. It manufactures a variety of of medical devices (including Class III devices). A number of it's products are sold in the US and European markets. The facility has a Quality Management System in place. Their Quality Management System is in compliance with ISO 13485:2016 and 21 CFR 820. Their facility is frequently audited by Notified Bodies and the FDA.

The site was recently audited by corporate. The corporate auditing team were checking the site's compliance with ISO 13485:2016 and 21 CFR 820. The auditors found a number of potential non-conformances to  ISO 13485:2016 and 21 CFR 820.

You must complete 4 tasks (for each of the 5 incidents/questions):

1.   Review each of these potential non-conformances (5 incidents in total)

2. Determine if they are non-conformances against the requirements of the ISO13485:2016 AND 21 CFR 820.

3. If they are non-compliances, write down the specific clause numbers in ISO 13485:2016 AND specific section number of 21 CFR 820 which is applicable (write down the main clause/section in each regulation that the non-compliance is against).

Note:  ISO 13485:2016 and 21 CFR 820 are available in the "Additional Resources" section, under the section heading "Quality Systems Regulations (EU and US)" (contained within Section A Medical Device Regulatory Affairs).

4. Briefly EXPLAIN your decision in 100-170 words.

QUESTION 4

The operation of a weighing scale (equipments ID 186749) was reviewed by the inspector in the Box Packing section. The weighing scale was in use during the current shift. The operating procedure (SOP18654) for the scale states that it must be calibrated at the beginning and end of each shift. The operating procedure states that that the calibration of the scales is recorded in a log book(Calibration Log for ID 186749 ). The inspector asked to review this log book. The maintenance technician who was interviewed said that the log book was held by the maintenance technician on the night shift and he always kept it in his desk drawer which was locked.

1. On January 1, 2015, Reno Inc. purchased a machine for $150,000. The machine has an estimated five year life, and no residual value. Double declining balance depreciation has been used for financial statement reporting and CCA for income tax reporting. Effective January 1, 2018, Reno decided to change to straight-line depreciation for this machine, and treated the change as a change in accounting policy. For calendar 2018, Reno’s pre-tax income before depreciation on this asset is $125,000. Their income tax rate has been 30% for many years. What net income should Reno report for calendar 2018? a 95000 b 85820 c 66500 d 45500

2. On January 2, 2015, Beaver Corp. purchased machinery for $135,000. The entire cost was incorrectly recorded as an expense. The machinery has a nine-year life and a $9,000 residual value. Beaver uses straight-line depreciation for all its plant assets. The error was not discovered until May 1, 2017, and the appropriate corrections were made. Ignore income tax considerations. Before the corrections were made, retained earnings was understated by a. 135000 b. 121000 c. 107000 d. 93000

3. Minor Corp. purchased a machine on January 1, 2014, for $600,000. The machine is being depreciated on a straight-line basis, using an estimated useful life of six years and no residual value. On January 1, 2017, Minor determined, as a result of additional information, that the machine had an estimated useful life of eight years from the date of acquisition with no residual value. An accounting change was made in 2017 to reflect this additional information. What is the amount of depreciation expense on this machine that should be reported in Minor's income statement for calendar 2017? a.150000 b.120000 c. 75000 c. 60000

4. Fairfax Inc. began operations on January 1, 2016. Financial statements for 2016 and 2017 contained the following errors:

i Ending Inventory Dec 31, 2016 : 33000 too high 2017 39000 too low ii Depreciation Expense 2016 21000 too high iii Insurance Expense 2016 15000 too low ; 2017 15000 too high iv Prepaid Insurance 2016 15000 too high

In addition, on December 31, 2017 fully depreciated equipment was sold for $7,200, but the sale was not recorded until 2018. No corrections have been made for any of the errors. Ignore income tax considerations. The total effect of the errors on Fairfax's 2017 net income is a.Understated by $94200 b.Understated by $61200 c.Overstated by 28800 d.Overstated by 49800

Statement of Cash Flows (Direct Method) The Sweet Company’s income statement and comparative balance sheets as of December 31 of 2016 and 2015 are presented below:

During the year, Sweet Company sold equipment for $27,000 cash that originally cost $57,000 and had $46,000 accumulated depreciation. New equipment was purchased for cash. Bonds payable and common stock were issued for cash. Cash dividends of $30,000 were declared and paid. At the end of the year, shares of treasury stock were purchased for cash. Accounts payable relate to merchandise purchases.

Required
a. Compute the change in cash that occurred during 2016.
b. Prepare a statement of cash flows using the direct method.

a. Change in Cash during 2016 $Answer Answer Increase Decrease

b. Use a negative sign with cash outflow answers.

What is your percent difference from the manufacturer’s claim for the aspirin content? Explain how our method may have led to such a difference. (Among other things, consider how the solutions were prepared and the difference between the pure ASA solutions and those prepared from the tablet.) ! Discuss two ways to improve the experiment.

In this experiment, 0.100 g of caffeine is dissolved in 4.0 mL of water. The caffeine is extracted from the aqueous solution three times with 2.0-mL portions of methylene chloride. Calculate the total amount of caffeine that can be extracted into the three portions of methylene chloride. Caffeine has a distribution coefficient of 4.6, between methylene chloride and water.

In this experiment, 0.170 g of caffeine is dissolved in 10.0 mL of water. The caffeine is extracted from the aqueous solution three times with 5.0-mL portions of methylene chloride. Calculate the total amount of caffeine that can be extracted into the three portions of methylene chloride. Caffeine has a distribution coefficient of 4.6 between methylene chloride and water.