Suzy is a 14 year old with pulmonary fibrosis. This disease causes progressive scarring of the lungs and therefore, reduced inspiratory volumes and chronic hypoxemia. Suzy is very inquisitive. Due to her disease, she knows that when she breathes in, her lungs help to bring oxygen into her blood, and when she breathes out, she gets rid of carbon dioxide from her blood. At her appointment today, you note that she has cyanosis (blue coloration) and clubbing in her fingers and toes – symptoms of hypoxemia. When Suzy asks why her fingers and toes look the way they do, you tell her that she is not getting enough oxygen to them. This answer does not satisfy Suzy! She then asks:
1. “How EXACTLY does oxygen get into my blood and carbon dioxide get out of my blood when I breathe?” (How do I oxygenate my blood?)
2. “And how does the oxygen get from my blood into my toes and fingers so they won’t turn blue?” (How do I oxygenate my tissues?)
Be thorough (or Suzy will just keep asking “how…why?” She is annoying like that!)
For both 1 and 2: Be sure you describe the events in the correct sequence. Your answer should include the how each gas’s partial pressure affects its diffusion, and the chemical reactions that occur within the blood during gas exchange.
3. Concerned, the doctor asks you to determine Suzy’s inspiratory reserve volume (IRV). Using a spirometer, you measure her tidal volume (TV) at 100 mL, expiatory reserve volume (ERV) at 800 mL, and her vital capacity (VC) at 1100 mL. What is her inspiratory reserve volume?
4. Finally, you treat Suzy by giving oxygen via a mask. Explain why this would be helpful in oxygenating her blood even though her inspiratory volumes are reduced.
In: Anatomy and Physiology
Katie is a shareholder in Engineers One, a civil engineering company. This year, Katie's share of the net business income from Engineers. One is $200,000. Assume that Katie's allocation of wages paid by Engineers One to it's employees is $300,000 and her allocation of Engineers One's qualified property is $150,000 (unadjusted basis of equipment , all purchased within the past three years) Assume Katie, has no other business income, no capital gains or qualified dividends, and that her taxable income before the deduction for qualified business income is $400,000.
Required:
a. Calculate Katie's deductions for qualified business income.
b. Assume the same facts as earlier, except Katie's net business income from Engineers One is $400,000 and taxable income before the deductable for qualified business income is $350,000.
In: Accounting
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||
| Total cash receipts | $ | 340,000 | $ | 460,000 | $ | 390,000 | $ | 410,000 |
| Total cash disbursements | $ | 386,000 | $ | 356,000 | $ | 346,000 | $ | 366,000 |
The company’s beginning cash balance for the upcoming fiscal year
will be $24,000. The company requires a minimum cash balance of
$10,000 and may borrow any amount needed from a local bank at a
quarterly interest rate of 3%. The company may borrow any amount at
the beginning of any quarter and may repay its loans, or any part
of its loans, at the end of any quarter. Interest payments are due
on any principal at the time it is repaid. For simplicity, assume
that interest is not compounded.
Required:
Prepare the company’s cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.)
In: Accounting
In: Finance
Presented below are a number of balance sheet items for Teal,
Inc., for the current year, 2017.
| Goodwill | $ 127,870 | Accumulated Depreciation-Equipment | $ 292,320 | |||
| Payroll Taxes Payable | 180,461 | Inventory | 242,670 | |||
| Bonds payable | 302,870 | Rent payable (short-term) | 47,870 | |||
| Discount on bonds payable | 15,320 | Income taxes payable | 101,232 | |||
| Cash | 362,870 | Rent payable (long-term) | 482,870 | |||
| Land | 482,870 | Common stock, $1 par value | 202,870 | |||
| Notes receivable | 448,570 | Preferred stock, $10 par value | 152,870 | |||
| Notes payable (to banks) | 267,870 | Prepaid expenses | 90,790 | |||
| Accounts payable | 492,870 | Equipment | 1,472,870 | |||
| Retained earnings | ? | Debt investments (trading) | 123,870 | |||
| Income taxes receivable | 100,500 | Accumulated Depreciation-Buildings | 270,520 | |||
| Notes payable (long-term) | 1,602,870 | Buildings | 1,642,870 |
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.
In: Accounting
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 76,000 units of product:
net sales $1,520,000; total costs and expenses $1,780,000; and net
loss $260,000. Costs and expenses consisted of the
following.
|
Total |
Variable |
Fixed |
||||
|---|---|---|---|---|---|---|
| Cost of goods sold | $1,115,600 | $611,000 | $504,600 | |||
| Selling expenses | 515,400 | 93,000 | 422,400 | |||
| Administrative expenses | 149,000 | 56,000 | 93,000 | |||
| $1,780,000 | $760,000 | $1,020,000 |
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 $199,000 to total salaries of $35,980 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. (Round contribution margin ratio to 4 decimal
places e.g. 0.2512 and final answer to 0 decimal places, e.g.
2,510.)
| 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.
(Round contribution margin ratio to 3 decimal places
e.g. 0.251 and final answers to 0 decimal places, e.g.
2,510.)
|
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? Select an
option
Alternative 1Alternative 2Alternative 3
In: Accounting
In: Mechanical Engineering
The Hale Company is currently working on its cash budget for the coming year. The following information is available:
Projected sales for the coming year:
|
Month |
Projected Sales |
|
January |
$850,000 |
|
February |
750,000 |
|
March |
730,000 |
|
April |
850,000 |
|
May |
830,000 |
|
June |
750,000 |
|
July |
900,000 |
The collection history of the Hale Company has been as follows:
20% of sales are collected in the month of the sale.
60% of the sales are collected in the month following the sale.
12% of the sales are collected in the 2nd month following the sale.
5% of the sales are collected in the 3rd month following the sale.
The following information regarding costs is available:
The cost of goods sold is 54% of sales
Items for sale are purchased in the month of the sale.
80% of accounts payable are paid in the month following when the cost is incurred.
20% of accounts payable are paid in the 2nd month following when the cost is incurred.
Wages are 28% of sales and are paid currently
Annual general and administrative costs are $1,411,200 and are incurred evenly throughout the year.
Annual property taxes are $14,000 and are paid semi annually in June and October.
A $10,000 cash capital purchase will be made in April.
The beginning cash balance in April is expected to be $47,000. The Hale Company has a policy of maintaining a minimum cash balance of $45,000. The company has an arrangement with a local bank for a line of credit that carries a 10% annual interest rate. If the ending monthly balance falls below $45,000, the company will borrow against the line of credit so that the minimum balance can be maintained. If the company has borrowed against the line of credit and a cash balance is expected to be above $45,000 at the end of a particular month, then repayments will be made bringing the cash balance down to $45,000. Interest on the line of credit is paid monthly. Assume that all line of credit transactions occur on the last day of the month.
Required:
Prepare a cash budget for the Hale Company for the 2nd quarter of the year. Include April, May, June, and a quarter total in your budget.
In: Accounting
The Duncan Company has just completed a number of budgets for the coming year. The cost of goods manufactured schedule, the proforma income statement and the balance sheet still have to be completed. The following information is available:
Prior year Balance Sheet:
|
Cash |
$35,000 |
Accounts Payable |
$98,000 |
|
Accounts Receivable |
45,000 |
Other Current Liabilities |
39,000 |
|
Materials Inventory |
35,000 |
Income Taxes Payable |
21,000 |
|
WIP Inventory |
25,000 |
||
|
Finished Goods Inventory |
32,000 |
Long-Term Debt |
250,000 |
|
Prepaid Expenses |
15,000 |
||
|
Plant and Equipment |
450,000 |
Common Stock |
100,000 |
|
Accumulated Depreciation |
(120,000) |
Retained Earnings |
27,000 |
|
Other Assets |
18,000 |
||
|
Total Assets |
$535,000 |
Total Liab. & Equity |
$535,000 |
Information from recent budgets for the coming year:
1. Projected sales are $1,800,000 (12,690 units)
2. Projected direct material purchases are $500,000
3. Projected direct material usage is $495,000
4. Projected direct labor expense is $400,000
5. Projected overhead is $380,000
6. Projected selling expenses are $120,000
7. Projected administrative expenses are $300,000
8. Projected cash collections are $1,785,000
9. Projected payments for materials (accounts payable) are
$520,000
10. Projected payments for other operating expenses (other current
liabilities) are $1,130,000
11. Projected depreciation expense is $55,000 and is already included in mfg overhead
Additional information that is available:
1. The expected tax rate is 35%
2. The company is planning a stock issue of $25,000
3. Income taxes are paid 3 months after the year-end
4. The company anticipates purchasing a new patent for $10,000 during the year.
5. WIP inventory is expected to decrease by $2,000
6. Finished goods inventory is expected to increase by $8,000
7. Due to insurance rate increases, it is expected that prepaid expenses will increase by $3,000
Investment information:
1. A purchase of additional equipment for $75,000 is expected on
January 1st.
2. The purchase will be made using $50,000 cash and long-term debt
will be increased by $25,000
Long-Term Debt information:
1. All long-term debt will have an 8% annual rate.
2. A payment of $50,000 including BOTH principle and interest will be made on December 31st.
Required: Prepare a cost of goods manufactured schedule, a proforma income statement and proforma balance sheet.
In: Accounting
Percent of Sales Method
At the end of the current year, Accounts Receivable has a balance of $895,000; Allowance for Doubtful Accounts has a credit balance of $8,000; and sales for the year total $4,030,000. Bad debt expense is estimated at 1/4 of 1% of sales.
1. Determine the amount of the adjusting entry for uncollectible accounts. $
2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful Accounts $ Bad Debt Expense $
3. Determine the net realizable value of accounts receivable. $
In: Accounting