Required information

[The following information applies to the questions displayed below.]

Wally’s Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows: Cash $ 20,870 Unearned Revenue (30 units) $ 5,100 Accounts Receivable $ 11,900 Accounts Payable (Jan Rent) $ 2,800 Allowance for Doubtful Accounts $ (1,650) Notes Payable $ 13,500 Inventory (35 units) $ 2,975 Contributed Capital $ 6,500 Retained Earnings – Feb 1, 2012 $ 6,195 • WWC establishes a policy that it will sell inventory at $165 per unit. • In January, WWC received a $5,100 advance for 30 units, as reflected in Unearned Revenue. • WWC’s February 1 inventory balance consisted of 35 units at a total cost of $2,975. • WWC’s note payable accrues interest at a 12% annual rate. • WWC will use the FIFO inventory method and record COGS on a perpetual basis. February Transactions 02/01 Included in WWC’s February 1 Accounts Receivable balance is a $1,300 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,300 balance to a note, and Kit Kat signs a 6-month note, at 12% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012. 02/02 WWC paid a $800 insurance premium covering the month of February. The amount paid is recorded directly as an expense. 02/05 An additional 190 units of inventory are purchased on account by WWC for $14,250 – terms 2/15, n30. 02/05 WWC paid Federal Express $380 to have the 190 units of inventory delivered overnight. Delivery occurred on 02/06. 02/10 Sales of 160 units of inventory occurred during the period of 02/07 – 02/10. The sales terms are 2/10, net 30. 02/15 The 30 units that were paid for in advance and recorded in January are delivered to the customer. 02/15 25 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase. 02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $2,300. 02/17 Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs. 02/18 Wrote off a customer’s account in the amount of $1,750. 02/19 $5,600 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense. 02/19 Collected $9,500 of customers’ Accounts Receivable. Of the $9,500, the discount was taken by customers on $6,500 of account balances; therefore WWC received less than $9,500. 02/26 WWC recovered $550 cash from the customer whose account had previously been written off (see 02/18). 02/27 A $700 utility bill for February arrived. It is due on March 15 and will be paid then. 02/28 WWC declared and paid a $950 cash dividend. Adjusting Entries: 02/29 Record the $2,300 employee salary that is owed but will be paid March 1. 02/29 WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts. 02/29 Record February interest expense accrued on the note payable. 02/29 Record one month’s interest earned Kit Kat’s note (see 02/01).

NEEDED JOURNAL ENTRIES: Feb 15. Record the 25 units of inventory returned Feb 29. WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts.

Sam Walton and John Walton are two brothers who run their father’s 20-year-old business “Walton Brothers
Auto Solutions”. They have two divisions in their business. Sam looks after the workshop, where they service
new and used cars. Second division of business is retail of automotive parts, which is looked after by John.
Retail shop is located just 20 minutes away from car service workshop. Both sites are located in Sunshine
suburb of Melbourne. From last 2-3 years their business has been growing at a very fast pace.
Their business continues to use traditional means of reporting and heavily relies on paper based reporting
mechanism. However, as business is expanding fast so it is becoming difficult to keep up with the pace of
reporting requirements, need of timely information primarily in relation to costing, pricing and sales revenue for
their business. Margaret Jones is their bookkeeper; she spends considerable time for just maintaining the
books and journalising transactions in a traditional way. Many a times payments to suppliers are delayed and
payments from customers are not received by due date. On some occasions customers do not make payment
and Walton Brothers do not even chase all overdue payments in a timely manner due to using traditional
recording and reporting mechanism. In last couple of years business revenue has grown by more than 80%,
which then lead to increase in many expenses and other costs. Walton Brothers are facing cash flow issues
and are finding it hard to maintain a reputation of reliable operators.
Margaret advised Walton Brothers that they needed to improve their accounting systems and not using
computerised accounting software was one of the issues.

REQUIREMENTS
• Conduct an online research and suggest at least two accounting software that they can use. For both
software answer the followings:
o Explain how it will solve current problem
o Explain strengths and any weaknesses
o Explain cost to purchase and implement (software and hardware cost both)
o How is using a Accounting software different from using existing traditional Accounting
techniques

• Explain if any other computer based programme can be used to substantiate Accounting software’s. If,
yes how can they be more effective then using the Accounting software for daily Accounting processes
within an organisation.

Required information

Exercise 6-4A Calculate inventory amounts when costs are rising (LO6-3)

[The following information applies to the questions displayed below.]

During the year, TRC Corporation has the following inventory transactions.

For the entire year, the company sells 432 units of inventory for $62 each.

Exercise 6-4A Part 3

3. Using weighted-average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Average Cost per unit" to 4 decimal places and all other answers to the nearest whole number.)

Case - 20.1. Malcolm as Tax Czar

Malcolm Middle has just been appointed the Tax Czar and is convinced that the leasing business is just a way for companies to avoid paying taxes. He has hired the Higher Consulting Firm to evaluate the cash flow effects to both the lessee and the lessor in financial leases. Mr. Middle wants to determine if there is any loss of tax revenue to the government.

The Higher Consulting Firm is using an example to analyze the taxes associated with a lease decision. The example has the following:

1. The cost of the asset is $1.25 million. The lessor will have to buy the asset to lease it to the lessee.

2. The cost of capital for both companies is 10 percent.

3. The annual cash flows (before tax) generated by the asset is $500,000, regardless of who uses the asset.

4. To acquire the asset, the company will make annual interest payments at the end of each year and

repay the principal of $1.25 million at the end of the 5th year (just like a bond).

5. Maintenance and insurance costs = $0.

6. The economic life of the asset, which is equal to the term of the lease, is 5 years.

7. Depreciation of $250,000 is claimed at the end of each year (for convenience we are assuming straight line).

8. Annual lease payments made at the end of the year are $300,000.

9. The tax rate of both lessee and lessor is 40 percent, and both companies make sufficient income to claim any tax benefits.

A. Complete the following table assuming the company buys the asset instead of leasing it.

Company Buys Asset Instead of Leasing

Year 1   Year 2   Year 3   Year 4   Year 5 Principal Repayment

Cash flow from asset

Interest payments

Lease payments

Depreciation

Tax payment

After-tax cash flows

B. Complete the following table assuming the company uses a financial lease instead of buying the asset. For simplicity, assume that the entire lease payment is treated as a financing charge (like interest).

Company Uses Financial Lease Instead of Buying (Lessee)

Year 1   Year 2   Year 3   Year 4   Year 5 Principal Repayment

Cash flow from asset

Interest payments

Lease payments

Depreciation

Tax payment

After-tax cash flows

C. Complete the following table for the lessor in the financial lease. For simplicity, assume that the entire lease payment is treated as a financing charge (like interest).

Lessor in Financial Lease

Year 1 Year 2 Year 3 Year 4 Year 5 Principal Repayment

Cash flow from asset

Interest payments

Lease payments

Depreciation

Tax payment

After-tax cash flow

D. Are Mr. Middle’s suspicions about loss of tax revenue correct?

E. How could companies gain from leasing activities? In other words, why would a lessor lease the asset to the operating company rather than use the asset itself?

My topic is Netflix

II. Explore the supply and demand conditions for your firm’s product.

a) Evaluate trends in demand over time and explain their impact on the industry and the firm. You should consider including annual sales figures for the product your firm sells.

b) Analyze information and data related to the demand and supply for your firm’s product(s) to support your recommendation for the firm’s actions. Remember to include a graphical representation of the data and information used in your analysis.

III. Examine the price elasticity of demand for the product(s) your firm sells.

a) Analyze the available data and information, such as pricing and the availability of substitutes, and justify how you determine the price elasticity of demand for your firm’s product.

b) Explain the factors that affect consumer responsiveness to price changes for this product, using the concept of price elasticity of demand as your guide.

c) Assess how the price elasticity of demand impacts the firm’s pricing decisions and revenue growth

References:

DATAMONITOR: Netflix, Inc. (2010). Netflix Inc. SWOT Analysis, 1–9

Lev-Ram, M. (2019). ONCE UPON A TIME AT NETFLIX. (cover story). Fortune, 180(4), 74–83.

Nobody Knows What Television Is Anymore. (2019). Reason, 51(7), 58.

Please I posted a question for 3days and haven't receive any response. Please below is the question; The previous solutions provided are incorrect.

Candy producer Jim’s Jellybeans have customers all over the world. To be able to meet demand, the company has been forced to operate 15 separate warehouses across the globe. Lately, however, development in IT and warehouse automation has created new possibilities for Jim’s Jellybeans. The cost of the current operation is (for the whole company):

Transportation: $1 000 000
Stock keeping: $15 000 000
Cost for tied-up capital: $2 000 000
The company is faced with three alternatives:

Alternative 1: Automate picking. This means that each warehouse will be 30% more expensive (stock keeping cost) due to new equipment etc. But it also means that the order to delivery lead-time for each warehouse will decrease by as much as 60%. The reduced lead time lets the company reduce the number of warehouses to 10. As a result of this, transportation cost will double.

Alternative 2: Automate everything. Here, the number of warehouses are reduced to 5. The remaining warehouses are heavily automated and stock keeping cost is increased by 70% for these. Transportation cost increases by 500%.

Alternative 3: Do nothing. Keep the current system intact.

Na. What is the cost for tied-up capital for alternative 1?
Nb. What is the cost for tied-up capital for alternative 2?
Nc. What is the total cost for alternative 1?
Nd. What is the total cost for alternative 2?
Ne. What is the total cost for alternative 3?

Skyblue Pty Ltd is a large private company that manufactures special reinforced concrete and other products used in the construction of airport runways and heavy use motor vehicle freeways. During the course of the audit for the year ended 30 June 2020, the government announced that it intends to scrap its proposed third runway project. You know that Skyblue Pty Ltd’s projections include a major share of the work expected to flow from this project.

The company has been experiencing some cash flow difficulties, although this is not unusual in the industry. Management has recently fully extended their overdraft facility in order to pay day-to-day expenses such as wages and salaries. The audit partner is concerned that the company may be facing going concern problems, but the managing director maintains that future capital expenditure can be cut back to alleviate the going concern issue. In addition, surplus assets can be sold to the growing Asian market and long-term debt can be rescheduled if necessary.

Required:

(a) Give examples of three other possible mitigating factors that have not yet been mentioned.

(b) What evidence should you obtain with respect to management’s representation about the various mitigating factors presented in question 6 and identified in part (a) above? (

(c) The engagement partner has decided to qualify the financial report on the basis of uncertainty as to going concern. However, the managing director argues that, as the company is privately held and all the shareholders are involved in the business, going concern problems should not be viewed as seriously as if the company was publicly listed and, therefore, an unqualified report should be signed. How would you respond to the managing director’s comments?

(d) What would be the impact on the audit of a comfort letter from a related company promising to provide financial support in the event that Skyblue Pty Ltd was unable to meet its debts?