Farm Fresh Produce Co. sells produce wholesale to local groceries on account. The accounts receivable department had the following information on December 31, 2009:

Total Credit sales $400,000.00

Balance of allowance for doubtful accounts ($950.00)

Bad debt as a percentage of credit sales 0.50%

Days Past Due Amount J

J Company 34 5,000.00

H Company 74 950.00

L Company 18 32,000.00

T Company 22 4,350.00

F Company 61 2,000.00

B Company 145 1,750.00

Age Class Percentage Uncollectible

0-30 2%

30-60 5%

60-90 12%

90-120 20%

120+ 75%

Instructions:

1. Create an aging of receivable report and determine the allowance for doubtful accounts.

2. Determine the allowance for doubtful accounts based on the percentage of sales method.

3. Illustrate the effects on the accounts and financial statements using both methods.

4. Illustrate the effects on the accounts and financial statements assuming Farm Fresh Produce Co. wrote off the balance of T Company on April 3, 2010.

5. Illustrate the effects on the accounts and financial statements assuming that T Company paid off its account on May 22, 2010.

Norther Leasing Corp. has the following standards for one unit of product:

The predetermined OH rates were developed using a practical capacity of 6,000 units per year. Production is assumed to occur evenly throughout the year.

During May 2010, the company produced 525 units. Actual data for May 2010 are as follows:

Direct material purchased: 45,000 pounds X $5.92 per pound

Direct material used: 43,020 pounds (all from May’s purchases)

Total labor cost: $24,955 for 1,550 hour

Variable overhead incurred: $43,750 for 800 hours of machine time

Fixed overhead incurred: $22,800 for 800 hours of machine time

Required: Calculate the following:

a) Variable overhead Cost

b) Variable overhead expenditure variance

c) Variable efficiency variances

d) Fixed overhead cost

e) Fixed overhead expenditure

f) Fixed volume variances

Real Gross Domestic Product (Real GDP), inflation rate and unemployment are important indicators in measuring the economic performance of a country. In this assignment, you are required to choose a country and explain its economic performance.

1. First, you will have to find and compile the data of Real GDP, unemployment rate and inflation rate from 1980 to 2010 for the chosen country.
2. Based on the data from question (a), draw a table to show the data for the three variables. Draw also a line graph for Real GDP and the second line graph that shows the unemployment rate and inflation rate (both variables in the same second line graph).
3. Explain the country's macroeconomic experience of economic growth rate (based on Real GDP data), unemployment and inflation between 1980 and 2010. Your explanation can also include policies implemented by the government and/or central bank of the country to increase economic growth rate and to remedy unemployment and inflation, if any, or any other relevant information for the three variables.

Additional information:

• Each group must consist of 3-4 members.
• All data are available in http://databank.worldbank.org/. e.g
  • Real GDP = Gross Domestic Product (Constant price USD)
  • Inflation rate = % Changes in Consumer Price Index (CPI)
  • Unemployment rate = % of Unemployment (Total labour force)

On May 5, 2009, Lloyd purchased a machine for $84,000. The estimated life of the machine was 10 years,

with an estimated residual value of $10,000. The service life in terms of “output” is estimated at 8,000 hours

of operation. SHOW ALL WORKING

1. Refer to the above data. Assume Lloyd uses straight-line depreciation with the half-year convention. Depreciation expense to be recognized in 2009 (the year of purchase) is: a. $7,400. b $8,400. c $3,700.d Some other amount.

2. Refer to the data above. Assume Lloyd uses 200%-declining-balance depreciation with the half-year convention. Depreciation expense to be recognized in 2010 (the second year of ownership) is:

a $8,400.b $13,120. c $15,120. d Some other amount.

3 Refer to the data above. Assume Lloyd uses 150%-declining-balance depreciation with the half-year convention. Depreciation expense to be recognized in 2009 (the year of purchase) is:

a $8,400. b $6,300. c $12,600. d Some other amount.

4 Refer to the data above. Assume Lloyd uses the units-of-output method and that the machine was in operation for 1,000 hours in 2009 and 1,800 hours in 2010. The book value of the machine at December 31,2010 is:

a $48,100. b $58,100. c $25,900. d Some other amount

Answer the following questions using the annual report of Colgate in Appendix A. Required: a. For 2009, 2010, and 2011 identify Colgate’s (1) tax payment/obligation if it paid the statutory tax rate, (2) tax provision made in the books, and (3) the actual tax payment/obligation. Broadly quantify how Colgate’s statutory tax payment differs from its actual tax payment. Also explain why these differences occur. b. What is Colgate’s effective tax rate for each of the three years? Why is it different from its statutory tax rate? Explain at least one of these differences in detail. c. What is Colgate’s tax provision? Why is it different from its tax obligation/payment? d. You are in the process of forecasting Colgate’s income for the next year. What tax rate would you apply to your forecast and why? (Come up with a rate if possible.) e. Examine Colgate’s deferred tax assets and liabilities. Explain why they arise in general. Provide a detailed explanation of how at least two of the deferred assets/liabilities arise and “guess” at the approximate duration over which these assets/liabilities are expected to reverse. f. Examine the “movement” in the deferred tax assets/liabilities between 2011 and 2010 and explain the major changes.

Please answer the following questions based on the given graph

(1) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(2) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) On average, the number of passengers of domestic flights increase by ________each year, keeping all else equal.

(3)Create a GrowthModel  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(4)Create a Growth Model  for passengers on Domestic flights. (To two decimal places) On average, the number of passengers of domestic flights increase by ________percent each year, keeping all else equal.

(5) Based on R-squared which model is better for predicting passengers of domestic flights?
Time Series (Trend) Model
Growth Model

1. By January 2014 the US population had grown to 317.3 million and the US Federal Debt was a reported $17.3 trillion. Calculate the January 2014 Federal Debt per capita and use the calculation in a meaningful sentence.

2. From class we learned that in 2010 the federal debt (in millions) was $13,561,623 and the population of the U.S. was 309 million. Use these values to compute the federal debt per capita in 2010.

3. In 1980, a Domino’s large pizza cost $4.99. What would be the cost of that pizza in 1995 dollars?

4. In 1986, a certain model of car cost $13,000. What would be the cost of that car in 2012 dollars? How does this compare to the actual cost of a typical new car in 2012?

5. According to a NY Times article on December 13, 2009, the average selling price of a 32” LCD TV was $600. What would be the cost of that same TV in 2015 dollars?

6. In 2009, the price of a package of crayons was $2.80. If it was the year 1988, what would the price be?

7. Use the chart below to answer: Using the starting value of $112 in 1995, which year was a better price when considering inflation? 2000, 2007 or 2011? (Assume that 1995 is a fair value for the goods and services.)

Discussion Questions:

1. Discuss the different types of unemployment that exist in the economy.
2. Explain what is participation rate in the labor force?
3. How much does the labor force participation rate affect the unemployment rate?
4. Do you think one type of unemployment is worse than others and why?
5. What can governments do to assist in reducing this type of unemployment?

Calculations:

1. Table 1.0 below provides nominal GDP, real GDP and GDP deflator data.

(a)            Complete Table 1.0

(b)             What is the base year for the GDP deflator?

(c)             Calculate the percentage change in nominal GDP, real GDP, and the GDP deflator between 2014 and 2015.

(d)            Was the increase in nominal GDP due mostly to an increase in real GDP or to an increase in the price level?            

TABLE 1.0

2. Consider the following data on Canadian GDP:

                                NOMINAL GDP                             GDP DEFLATOR

YEAR             (IN BILLIONS)                (BASE YEAR 2010)

2011                              $725                                         101.2                                          

2012                               $762                                             102.4

a.            What was the growth rate of nominal income between 2011 and 2012? (Note: The growth rate is the percentage change from one period to the next.)

b.            What was the growth rate of the GDP deflator between 2011 and 2012?

c.            What was real income in 2011 measured in 2010 prices?

d.            What was real income in 2012 measured in 2010 prices?

e.            What was the growth rate of real income between 2011 and 2012?

f.            Was the growth rate of nominal income higher or lower than the growth rate of real income? Explain.

3. Suppose that the residents of Wolfgang spend all of their income on cauliflower, broccoli, and carrots. In 2014 they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50. In 2015 they buy 75 heads of cauliflower for $225, 80 bunches of broccoli for $120, and 500 carrots for $100. If the base year is 2014, what is the CPI in both years? What is the inflation rate in 2015?

**answer all question thoroughly for good rating**

Experiment 2 Diffusion - Concentration Gradients and Membrane Permeability Experiment Inventory

Materials 10 mL 1% Glucose Solution, C6H12O6 4 mL 1% Iodine-Potassium Iodide (IKI) 5 mL Liquid Starch, C6H10O5 4 Glucose Test Strips 4 Small Rubber Bands (Latex Warning: Handle with gloves on if allergic.) *Permanent Marker *Water *Scissors *Paper Towels *Stopwatch/Timer

Labware (5) 100 mL Beakers 6 Pipettes Ruler 100 mL Graduated Cylinder **15.0 cm Dialysis Tubing

**Be sure to measure and cut only the length you need for this experiment. Reserve the remainder for later experiments.

lab

EXPERIMENT DIFFUSION – CONCENTRATION GRADIENTS AND MEMBRANE PERMEABILITY **In this experiment, you will dialyze a solution of glucose and starch to observe the effect of a selectively permeable membrane on the diffusion of these molecules. To assess the movement of these molecules, you will use indicators. An indicator is a substance that changes color when in the presence of the substance it indicates. You will be using an indicator to test for the presence of starch and glucose. Attention! • Do not allow the open end of the dialysis tubing to fall into the beaker. If it does, remove the tube and rinse thoroughly with water before refilling it with the starch/glucose solution and replacing the tubing to the beaker. • Dialysis tubing must be soaked in water before you will be able to open it up to create the dialysis “bag.” Follow these directions for this experiment:

1. Soak the tubing in a beaker of water for 10 minutes. 2. Place the dialysis tubing between your thumb and forefinger, and rub the two digits together in a shearing manner. This motion should open up the “tube” so that you can fill it with the different solutions. • If you make a mistake, the dialysis tubing can be rinsed and used again. • You may need to reuse beakers throughout this experiment. When this is the case, clean beakers between uses.

PROCEDURE 1. Measure and pour 50 mL of water into a 100 mL beaker using the 100 mL graduated cylinder. 2. Label this beaker “water.” Cut a piece of dialysis tubing 15 cm long. Submerge the dialysis tubing in the water for at least 10 minutes. 3. Measure and pour 82 mL of water into a second 100 mL beaker using the 100 mL graduated cylinder. Label this beaker “dialysis.” This is the beaker you will put the filled dialysis bag into in Step 10. 4. Make the glucose/starch mixture. Use a graduated pipette to add 5 mL of glucose solution to a third 100 mL beaker and label it “dialysis bag solution.” Use a different graduated pipette to add 5 mL of starch solution to the same beaker. Mix by pipetting the solution up and down six times. 5. Using the same pipette that you used to mix the dialysis bag solution, remove 2 mL of the dialysis bag solution and place it in a clean beaker. Label this beaker “positive control.” This sample will serve as your positive control for glucose and starch. a. Dip one of the glucose test strips into the 2 mL of glucose/starch solution in the fourth beaker. After 1 minute has passed, record the final color of the glucose test strip in Table 2. This is your positive control for glucose. b. Use a pipette to transfer approximately 0.5 mL of IKI into the 2 mL of glucose/starch solution in the fourth beaker. After 1 minute has passed, record the final color of the glucose/starch solution in the beaker in Table 2. This is your positive control for starch. 6. Using a clean pipette, remove 2 mL of water from the “dialysis” beaker and place it in a clean beaker. Label this beaker “negative control.” This sample will serve as your negative controls for glucose and starch. a. Dip one of the glucose test strips into the 2 mL of water in the beaker. After 1 minute has passed, record the final color of the glucose test strip in Table 2. This is your negative control for glucose. b. Use a pipette to transfer approximately 0.5 mL of IKI into the 2 mL in the beaker. After 1 minute has passed, record the final color of the water in the beaker in Table 2. This is your negative control for starch. Note: The color results of these controls determine the indicator reagent key. You must use these results to interpret the rest of your results. 7. After at least 10 minutes have passed, remove the dialysis tube, and close one end by folding over 3.0 cm of one end (bottom). Fold it again, and secure with a rubber band (use two rubber bands if necessary). 8. Test to make sure the closed end of the dialysis tube will not allow the solution to leak out. Dry off the outside of the dialysis tube bag the paper towels. To open the dialysis tubing, use your thumb and pointer finger to rub the tubing between your fingers. Then, add a small amount of water to the bag and examine the rubber band seal for the leakage. Note: Be sure to remove the water from the inside of the bag before continuing. 9. Using the same pipette that was used to mix the glucose-starch solution in Step 4, transfer 8 mL of the dialysis bag solution beaker to the prepared dialysis bag. 10. Place the filled dialysis bag in the “Dialysis” beaker, leaving the open end draped over the edge of the beaker as shown in Figure 7. 11. Allow the solution to sit for 60 minutes. Clean and dry all materials except the beaker holding the dialysis bag. 12.After the solution has diffused for 60 minutes, remove the dialysis bag from the beaker, and empty the contents of the bag into a clean, dry beaker. Label the beaker “final dialysis bag solution.” 13. Test the final dialysis bag solution for the presence of glucose by dipping one glucose test strip into the dialysis bag. Wait 1 minute before reading the results of the test strip. Record your results for the presence of glucose in Table 3. Figure 7: Step 10 reference. 14.Test for the presence of starch by adding 2 mL IKI. After 1 minute has passed, record the final color in Table 3. 15. Use a pipette to transfer 8 mL of the water in the beaker to a clean beaker. Label this beaker “final dialysis beaker solution.” Test the beaker water for the presence of glucose by dipping one glucose test strip into the beaker. Wait 1 minute before reading the results of the test strip, and record the results in Table 3. 16.Test for the presence of starch by adding 2 mL of IKI to the beaker water. Record the final color of the beaker solution in Table 3.

Diffusion Concentration Gradients and Membrane Permeability

Data Tables

Table: Indicator Reagent Data

Table: Diffusion of Starch and Glucose Over Time

Questions

1. State your hypothesis.
2. Why is it necessary to have positive and negative controls in this experiment?
3. Draw a diagram of the experimental set-up. Use arrows to depict the movement of each substance in the dialysis bag and the beaker.
4. Which substance(s) crossed the dialysis membrane? Support your response with data-based evidence.
5. Which molecules remained inside of the dialysis bag?
6. Did all of the molecules diffuse out of the bag into the beaker? Why or why not?

Reflection (Discuss what you have learned by doing this experiment. How have your ideas changed? Do you have any new questions? What connections did you make between the lab and lecture?):

Question 2
A department at Venta Technology has prepared the following report for 2020. This department has recently faced severe competitive pressures, which has resulted in falling sales and profits over the last 3 years.

Summarised data from the management accounts
Budgeted profit and loss account for 12 months

A new customer has placed an order for 10,000 units at £60 per unit. The current capacity of the factory is 90,000 units.

Note 1. Cost of goods sold includes fixed costs of £500,000. All other costs are variable.

Note 2. If the order is accepted there will be additional fixed costs of £50,000. Staff will receive a bonus of £10,000 if the order is completed on time.

Note 3. Sales commission is 10% of sales and is included in the total cost of £800,000. The sales commission on the new order is only 5%. All other costs are fixed

Required:

1. Advise managers whether or not the order will increase the department’s profits.

2. Calculate the minimum price the company should accept for the order.  

3. Assume that the company will lose 10% of current sales if the order is accepted. What is the lost contribution if the company loses 10% of current sales?           

4. Identify and evaluate what additional information management need about existing and potential customers before finally accepting or rejecting the order.   (14⅓ marks)