A 7-year project is expected to generate annual sales of 10,400 units at a price of $91 per unit and a variable cost of $62 per unit. The equipment necessary for the project will cost $437,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $265,000 per year and the tax rate is 35 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price?

The stockholders’ equity section of Grouper Inc. at the beginning of the current year appears below.

During the current year, the following transactions occurred.

Prepare the stockholders’ equity section of the balance sheet at the end of the current year. Assume that retained earnings at the end of the current year is $824,000.

The following information was taken from the records of Skysong Inc. for the year 2017: Income tax applicable to income from continuing operations $174,148; income tax applicable to loss on discontinued operations $28,322, and unrealized holding gain on available-for-sale securities (net of tax) $18,000.

Shares outstanding during 2017 were 105,300.

Prepare a single-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Note: This problem is for the 2018 tax year. Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2016. Alfred and Beulah will file a joint return for 2018. Alfred's Social Security number is 111-11-1112. Beulah's Social Security number is 123-45-6789, and she adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304. Alfred was divorced from Sarah Old in March 2016. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2018. In addition, in January 2018, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788. Alfred's salary for 2018 is $150,000, and his employer, Cherry, Inc. (Federal I.D. No. 98-7654321), provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes. Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives a salary of $42,000 in 2018. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes. Beulah has $500 in qualified dividends on Yellow Corporation stock she inherited. Alfred and Beulah receive a $1,900 refund on their 2017 state income taxes. They itemized deductions on their 2017 Federal income tax return (total of $15,000). Alfred and Beulah pay $4,500 interest and $1,450 property taxes on their personal residence in 2018. Their charitable contributions total $2,400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Both spouses had health insurance for all months of 2018 and do not want to contribute to the Presidential Election Campaign. Required: Compute Alfred and Beulah's net tax payable (or refund due) for 2018, on a joint return, by providing the following information that would be reported on Form 1040, Schedule A, and Schedule B. Enter all amounts as positive numbers. If is zero, enter "0". Make realistic assumptions about any missing data. If required round your final answers to the nearest dollar.

The following information pertains to the City of Williamson for 2017, its first year of legal existence. For convenience, assume that all transactions are for the general fund, which has three separate functions: general government, public safety, and health and sanitation. Receipts: Property taxes $414,000 Franchise taxes 43,000 Charges for general government services 6,200 Charges for public safety services 4,300 Charges for health and sanitation services 47,800 Issued long-term note payable 314,000 Receivables at end of year: Property taxes (90% estimated to be collectible) 100,800 Payments: Salary: General government 60,200 Public safety 32,800 Health and sanitation 20,200 Rent: General government 16,300 Public safety 21,000 Health and sanitation 3,900 Maintenance: General government 27,600 Public safety 5,700 Health and sanitation 11,500 Insurance: General government 8,400 Public safety ($3,800 still prepaid at end of year) 15,300 Health and sanitation 15,700 Interest on debt 25,120 Principal payment on debt 6,280 Storage shed 194,000 Equipment 120,000 Supplies (20% still held) (public safety) 16,600 Investments 92,000 Ordered but not received: Equipment 16,500 Due in one month at end of year: Salaries: General government 4,500 Public safety 8,400 Health and sanitation 9,300 Compensated absences (such as vacations and sick days) are legally owed to general government workers at year-end total $19,500. These amounts will not be taken by the employees until so late in 2018 that the payment is not viewed as requiring 2017 current financial resources. The city received a piece of art this year as a donation. It is valued at $23,900. It will be used for general government purposes. There are no eligibility requirements. The city chose not to capitalize this property. The general government uses the storage shed that was acquired this year. It is being depreciated over 10 years using the straight-line method with no salvage value. The city uses the equipment for health and sanitation and depreciates it using the straight-line method over five years with no salvage value. The investments are valued at $109,900 at the end of the year. For the equipment that has been ordered but not yet received, the City Council (the highest decision-making body in the government) has voted to honor the commitment when the equipment is received. a-1. Prepare a statement of activities for governmental activities for December 31, 2017. a-2. Prepare a statement of net position for governmental activities for December 31, 2017. b-1. Prepare a statement of revenues, expenditures, and other changes in fund balances for the general fund as of December 31, 2017. Assume that the city applies the consumption method. b-2. Prepare a balance sheet for the general fund as of December 31, 2017. Assume that the city applies the consumption method.

At the beginning of Year 2, the Redd Company had the following balances in its accounts:

During Year 2, the company experienced the following events:

1. Purchased inventory that cost $5,500 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $500 were paid in cash.
2. Returned $350 of the inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
3. Paid the amount due on its account payable to Ross Company within the cash discount period.
4. Sold inventory that had cost $6,000 for $9,000 on account, under terms 2/10, n/45.
5. Received merchandise returned from a customer. The merchandise originally cost $500 and was sold to the customer for $800 cash. The customer was paid $800 cash for the returned merchandise.
6. Delivered goods FOB destination in Event 4. Freight costs of $600 were paid in cash.
7. Collected the amount due on the account receivable within the discount period.
8. Took a physical count indicating that $1,700 of inventory was on hand at the end of the accounting period.

c-1. Prepare a multistep income statement.
c-2. Prepare a statement of changes in stockholders’ equity.
c-3. Prepare a balance sheet.
c-4. Prepare a statement of cash flows.

put each of these in Schedule.

Knitpix Products is a division of Parker Textiles Inc. During the coming year, it expects to earn income Of $310,000 based on sales of $3.45 million; without any new investments, the division will have average operating assets of $3 million. The division is considering a capital investment project—adding knitting machines to produce gaiters— that requires an additional investment of $600,000 and increases net income by $57,500 (sales would increase by $575,000). If made, the investment would increase beginning operating assets by $600,000 and ending operating assets by $400,000.

Assume that the actual cost of capital for the company is 7 percent.

Required:

1. Compute the ROl for the division without the investment.

2. Compute the margin and turnover ratios without the investment. Show that the product of the margin and turnover ratios equals the ROI computed in Requirement 1.

3. Compute the ROI for the division with the new investment. Do you think the divisional manager will approve the investment?

4. Compute the margin and turnover ratios for the division with the new investment. Compare these with the old ratios.

5. Compute the EVA of the division with and without the investment. Should the manager decide to make the knitting machine investment?

An income statement for the first year of operations for Patti Company appears below:

Additional information:

1. Accounts payable, end of year, $13,000.

2. Salaries payable, end of year, $8,450.

3. Inventories, end of year, $26,000.

4. Accounts receivable, end of year, $32,500.

Required:

Use the direct approach to calculate the cash provided (used) by operating activities for Patti Company. (Net cash outflows and amounts to be deducted should be indicated by a minus sign.)