EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $570 budgeted price and $280 budgeted variable cost. Each billable hour of staff time has a budgeted price of $140 and a budgeted variable cost of $90. For the most recent year, the partnership budget called for 8,800 billable partner-hours and 32,700 staff-hours. Actual results were as follows:

Required:

a. Compute the sales price variance. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

b. Compute the total sales activity variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

c. Compute the total sales mix variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

d. Compute the total sales quantity variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Serial Problem Business Solutions LO P2, P3

The December 31, 2019, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2019) follows.
  

Required:
1. Record the closing entries as of December 31, 2019.
2. Prepare a post-closing trial balance as of December 31, 2019.

E5.16  

(Preparation of Partial Statement of Cash Flows—Operating Activities)

(LO 8, 9) The statement of income of Kneale Transport Inc. for the year ended December 31, 2020, reported the following condensed information:

Kneale's statement of financial position included the following comparative data at December 31:

Additional information:

Operating expenses include $70,000 in depreciation expense. The company follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows.

Instructions

a.  

Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, using the

• 1.indirect method and

• 2.direct method.

b.  

From the perspective of an external user of Kneale Transport's financial statements, discuss the usefulness of the statement of cash flows prepared using either the indirect or the direct method.

Given LBO Parameters and Assumptions

• Abraaj Capital purchases Hepsiburada (HB) for 7.0x Forward 12 months (FTM) EBITDA at the end of Year 0.
• The debt-to-equity ratio for the LBO acquisition will be 70:30.
• Assume the weighted average interest rate on debt to be 12%.
• HB expects to reach $900 million in sales revenue with an EBITDA margin of 10% in Year 1.
• Revenue is expected to increase by 20% year-over-year (y-o-y).
• EBITDA margins are expected to remain flat during the term of the investment.
• Capital expenditures are expected to equal 5% of sales each year.
• Operating working capital is expected to increase by $10 million each year.
• Depreciation is expected to equal $40 million each year.
• Assume a constant tax rate of 20%.
• Abraaj exits the target investment after Year 5 at the same EBITDA multiple used at entry (5.0x FTM EBITDA).
• Assume all debt pay-down occurs at the moment of sale at the end of Year 5 (this eliminates the iterative/circular dependency between debt pay-down/cash balances and interest expense in a computer-based LBO model).

1. What is the purchase price of HB?
   1. USD 450 million
   2. USD 550 million
   3. USD 630 million
   4. USD 700 million
   5. None of the above

We need to solve without of Excel.

Zinco Corp is a sporting goods store located in Washington State. At the end of the company’s calendar year on December 31, 2019, the following accounts appeared in two of its trial balances.

Instructions

(a) Prepare a multiple-step income statement, an owner’s equity statement, and a classified balance sheet. $25,000 of the mortgage payable is due for payment next year.

(b) Journalize the adjusting entries that were made.

(c) Journalize the closing entries that are necessary.

No formats were given, just what I posted above

One of the tasks you face as a manager, especially if your organization makes frequent business transactions, is that of preparing a budget. A budget is a tool used for planning and controlling your financial resources. It is a guideline for your future plan of action, expressed in financial terms within a set period of time. A budget does not have to be complex. However, it should support the strategic plan for the organization. We will need resources to achieve our goals and objectives.

Imagine you are the healthcare administrator for Baptist Healthcare Services (BHS) Inc. Forthis project, focus on the operating budget. An operating budget shows the Baptist Healthcare Services (BHS) Inc., projected revenue and associated expenses for an upcoming period—usually the next year. An operating budget starts with revenue, and then shows each expense type. This includes variable costs, or the costs that vary with sales, such as the cost of raw materials and production labor. The operating budget includes fixed costs, such as the monthly rent on office space or the monthly payment for a photocopier lease. The budget also includes operating expenses, such as interest on business loans, and the non-cash expense of depreciation. These items enable the company to compute its projected net income and net profit percentage.

• Using the information provided develop a one-year operating budget using excel for the Baptist Healthcare Services (BHS) Inc., which will include operating revenues and expenses.

Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation:

Events Affecting Year 1

1. Provided $26,830 of cleaning services on account.
2. Collected $21,464 cash from accounts receivable.
3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

Events Affecting Year 2

1. Wrote off a $201 account receivable that was determined to be uncollectible.
2. Provided $31,311 of cleaning services on account.
3. Collected $27,710 cash from accounts receivable.
4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

Required
a. Organize the transaction data in accounts under an accounting equation.
b. Determine the following amounts:

1. (1) Net income for Year 1.
2. (2) Net cash flow from operating activities for Year 1.
3. (3) Balance of accounts receivable at the end of Year 1.
4. (4) Net realizable value of accounts receivable at the end of Year 1.

c. Determine the following amounts:

1. (1) Net income for Year 2.
2. (2) Net cash flow from operating activities for Year 2.
3. (3) Balance of accounts receivable at the end of Year 2.
4. (4) Net realizable value of accounts receivable at the end of Year 2.

PRACTICAL QUESTION                                                                                         

Tiger Construction Ltd signs a contract on 1 May 2018 to build a theme park. The construction is scheduled to commence on 1 July 2018 and the estimated date of completion is 30 June 2021. The total contract price is $5m and the cost of the park is initially estimated at $4.5m. The following data relates to the construction period:

Assume that cost (an input measure) is used as the basis for assessing progress on the construction contract.

Required

Determine the percentage of completion for 2019, 2020 and 2021.               

Calculate revenue and gross profit for 2019, 2020 and 2021.                           

Using the percentage of completion method, provide the journal entries for 2019, 2020 and 2021.                                                                                                              

PRACTICAL QUESTION                                                                                         

Tiger Construction Ltd signs a contract on 1 May 2018 to build a theme park. The construction is scheduled to commence on 1 July 2018 and the estimated date of completion is 30 June 2021. The total contract price is $5m and the cost of the park is initially estimated at $4.5m. The following data relates to the construction period:

Assume that cost (an input measure) is used as the basis for assessing progress on the construction contract.

Required

Determine the percentage of completion for 2019, 2020 and 2021.               

Calculate revenue and gross profit for 2019, 2020 and 2021.                           

Using the percentage of completion method, provide the journal entries for 2019, 2020 and 2021.                                                                                                              

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made. The pizzeria’s cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.60 Kitchen staff $ 6,170 Utilities $ 740 $ 0.60 Delivery person $ 3.40 Delivery vehicle $ 760 $ 1.60 Equipment depreciation $ 504 Rent $ 2,130 Miscellaneous $ 860 $ 0.20 In November, the pizzeria budgeted for 1,950 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 2,050 Deliveries 170 Revenue $ 41,680 Pizza ingredients $ 9,550 Kitchen staff $ 6,110 Utilities $ 950 Delivery person $ 578 Delivery vehicle $ 1,012 Equipment depreciation $ 504 Rent $ 2,130 Miscellaneous $ 868 Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)