In 1913, Andrew Carnegie's net worth was approximately $475 million. In 2018, Mark Zuckerberg’s net worth was $58 billion. One dollar ($1) in January of 1913 has the same buying power as $25.76 in September of 2018.

What is the real wealth for Andrew Carnegie in 1913?

a. 2.5b units of goods and services

b. 1.5b units of goods and services

c. 768m units of goods and services

d. 475m units of goods and services

e. 2.25b units of goods and services

What is the real wealth for Mark Zuckerberg in 2018?

a. 2.25b units of goods and services

b. 1.5b units of goods and services

c. 768m units of goods and services

d. 475m units of goods and services

e. 4.25b units of goods and services

Who is the wealthier of the two?

A. Andrew Carnegie

B. Mark Zuckerberg

Tamarisk Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Pretax Income (Loss) Tax Rate 2018 $128,000 17 % 2019 118,000 17 % 2020 (290,000 ) 19 % 2021 306,000 19 % The tax rates listed were all enacted by the beginning of 2018. Collapse question part

(a) Prepare the journal entries for the years 2018–2021 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the loss carryforward, assuming that at the end of 2020 the benefits of the loss carryforward are judged more likely than not to be realized in the future.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0)

Broussard Skateboard's sales are expected to increase by 15% from $7.8 million in 2018 to $8.97 million in 2019. Its assets totaled $2 million at the end of 2018.
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2018, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 75%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.

Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2018 is available: Aug.1 Inventory on hand—6,500 units; cost $7.90 each. 8 Purchased 24,000 units for $6.90 each. 14 Sold 18,000 units for $13.40 each. 18 Purchased 13,000 units for $6.40 each. 25 Sold 17,000 units for $12.40 each. 31 Inventory on hand—8,500 units. Required: Determine the inventory balance Altira would report in its August 31, 2018, balance sheet and the cost of goods sold it would report in its August 2018 income statement using each of the following cost flow methods: FIFO,LIFO, Average cost

Assume that in 2017, The Shallonz Corporation reported net income of $143 million, and paid dividends totaling $36.5 million throughout the year. Their net income has been growing at about 5% per year for some time, but it is expected to grow by 20% in 2018. Growth is expected to return to the normal 5% the following year and thereafter. It has also been estimated that the company will need about $52 million in funds for capital expenditures in 2018. The company is financed with 70% equity. What will be the company’s payout ratio if it follows a pure residual dividend policy in 2018? What would the payout ratio be if instead they allowed the dividends to grow at the same rate as the long-term growth rate in income? What would you recommend they do? Please explain exactly why.

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2018 ($ in 000s):

In addition, during the year the company completed the disposal of its plastics business and incurred a loss from operations of $2.5 million and a gain on disposal of the component’s assets of $3.8 million. 600,000 shares of common stock were outstanding throughout 2018. Income tax expense has not yet been recorded. The income tax rate is 40% on all items of income (loss).

Required:
Prepare a multiple-step income statement for 2018, including EPS disclosures.

On January 1, 2018, NFB Visual Aids issued $780,000 of its 20-year, 8% bonds. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2018, the fair value of the bonds was $650,000 as determined by their market value in the over-the-counter market. General (risk-free) interest rates did not change during 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required: 1-a. Determine the price of the bonds at January 1, 2018. 1-b to 4. Prepare the necessary Journal entries.

On January 1, 2018, Instaform, Inc., issued 10% bonds with a face amount of $58 million, dated January 1. The bonds mature in 2037 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually.

Required:
1-a. Determine the price of the bonds at January 1, 2018.
1-b. Prepare the journal entry to record their issuance by Instaform.
2-a. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2018.
2-b. Assume the market rate was 9%. Prepare the journal entry to record their issuance by Instaform.
3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.

Samson Equipment Ltd. is a company that manufactures an abdominal exerciser called The Ab Rippler. The following information is for three of the company's activities in 2018:

                                                                   Rate per Output unit/Batch

                                                       Static                                   Actual

Activity          Activity Level   Cost Driver           Budget          Cost

Manufacturing    Output unit Machine hours         $0.90         $1.05

Inspecting               Batch       Inspection hours    $15.00         12.50

Packaging               Batch       Packaging hours      $5.50         $5.25

The output measure is the number of units produced.

                                                                                 Static       Actual

                                                                                Budget      Amount

Number of units produced                                     40,000        44,400

Number of machine hours                                     16,000        14,800

Batch size in terms of units produced:

      Inspection                                                                5                 4

      Packaging                                                              20               25

Required:

a.    Calculate the flexible-budget variance for each activity in 2018.

b.   Calculate the price and efficiency variances for each activity in 2018.

Income Statement
For Year Ended December 31, 2018

Sales revenue $97,200

Expenses  

Cost of goods sold 42,000

Depreciation expense 12,000

Salaries expense 18,000

Rent expense 9,000

Insurance expense 3,800

Interest expense 3,600

Utilities expense 2,800

Net income $6,000

Prepare the cash flows from operating activities section only of the company’s 2018 statement of cash flows using the direct method.