"MBA from" US university founder "Finland" company acquired 2020 CEO interview questions

Questions

Based on information given in the attached Excel document, 1. Prepare journal entries and adjusting entries...

Based on information given in the attached Excel document, 1. Prepare journal entries and adjusting entries for September 2019 for your company. 2. Set up T-accounts and post your journal entries and adjusting entries to T-accounts. 3. Prepare your company’s pre-closing trial balance, as of September 30, 2019. 4. Prepare an income statement, in a good format, for the month of September 2019 for your company. 5. Prepare a statement of retained earnings, in a good format, for the same period. 6. Prepare a balance sheet, in a good format, as of September 30, 2019 for your company. 7. Prepare closing entries and a post-closing trial balance, as of September 30, 2019.

Description of the Business Activity:

1. You, the owner(s), contributed $1,000 cash to the business on September 1. 2. On September 1, your company borrowed $21,000 from a local bank, on a 10% note for 5 years. The interest would be paid semi-annually on each March 1 and September 1. 3. On September 1, your company paid $900 fees to local government agencies for business licenses and permits, for a period of one year. 4. On September 1, your company acquired a mobil cart, a business sign, and some other equipment for a total of $4,200 (all paid in cash). You estimated that the lifetime of these PP&E was 2 years with a residual value of $200. 5. On September 1, your company also paid $1,500 for its annual insurance, starting September 1. 6. During September, your company acquired merchandise, totaled $35,000. At the time of purchases, 70% of the merchandise was acquired on account. Your company promised to pay the remaining balances in 20 days. 7. For merchandise purchases in Transaction 6, toward the end of September, your company also paid in cash, an additional 20% of the total merchandise prices to its suppliers. 8. During September, your company delivered merchandise and earned $50,000 sales revenue, of which 30% was on credit. Cost, to your company, of the merchandise sold, was $27,000. 9. On September 26, your company also signed a sales contract with a customer, Mini-Soda Company to deliver a total of $5,000 merchandise on October 7, 2019. Your company collected $2,000 cash in advance from this customer on September 26. 10. By the end of September, your company collected 50% of its accounts receivables from various customers from the abovementioned Transaction 8. 11. By the end of September, your company incurred and paid a total of $8,000 in cash for its other selling expenses (including advertising, marketing, payroll, cart transportation, trailer rental, etc.).

Additional Information:

12. Your company incurred monthly interest expense on its debt borrowing as described in Transaction 2. 13. At the end of September, your prepayment, from Transaction 3, on business licenses and permits expired for the month. 14. As described in Transaction 4, your company's PP&E had an estimated life of 2 years with a $200 residual value. Your company used the straight-line depreciation method. 15. At the end of September, your prepayment, from Transaction 5, on insurance expired for the month. 16. At the end of September, your company estimated 10% of its outstanding accounts receivables as possible uncollectible. 17. The income tax rate was 20% for your company, which would be paid in March 2020.

In: Accounting

Problem 23-01 The following are Flounder Corp.’s comparative balance sheet accounts at December 31, 2020 and...

Problem 23-01

The following are Flounder Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS
	*2020*		2019		Increase (Decrease)
Cash	$812,400		$700,100		$112,300
Accounts receivable	1,135,500		1,158,500		(23,000	)
Inventory	1,844,800		1,713,900		130,900
Property, plant, and equipment	3,316,600		2,964,200		352,400
Accumulated depreciation	(1,160,900	)	(1,040,300	)	(120,600	)
Investment in Myers Co.	309,500		274,000		35,500
Loan receivable	250,500		—		250,500
Total assets	$6,508,400		$5,770,400		$738,000

Accounts payable	$1,015,400		$955,000		$60,400
Income taxes payable	29,900		50,300		(20,400	)
Dividends payable	79,600		100,500		(20,900	)
Lease liabililty	412,000		—		412,000
Common stock, $1 par	500,000		500,000		—
Paid-in capital in excess of par—common stock	1,511,500		1,511,500		—
Retained earnings	2,960,000		2,653,100		306,900
Total liabilities and stockholders’ equity	$6,508,400		$5,770,400		$738,000

Additional information:

1.		On December 31, 2019, Flounder acquired 25% of Myers Co.’s common stock for $274,000. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,096,000. Myers reported income of $142,000 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2.		During 2020, Flounder loaned $312,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $61,700, plus interest at 10%, on December 31, 2020.
3.		On January 2, 2020, Flounder sold equipment costing $59,600, with a carrying amount of $37,700, for $40,200 cash.
4.		On December 31, 2020, Flounder entered into a capital lease for an office building. The present value of the annual rental payments is $412,000, which equals the fair value of the building. Flounder made the first rental payment of $59,700 when due on January 2, 2021.
5.		Net income for 2020 was $386,500.
6.		Flounder declared and paid the following cash dividends for 2020 and 2019.

	*2020*	2019
Declared	December 15, 2020	December 15, 2019
Paid	February 28, 2021	February 28, 2020
Amount	$79,600	$100,500

Prepare a statement of cash flows for Flounder Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

In: Accounting

Problem 23-01 The following are Kingbird Corp.’s comparative balance sheet accounts at December 31, 2020 and...

Problem 23-01

The following are Kingbird Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS
	*2020*		2019		Increase (Decrease)
Cash	$821,300		$694,000		$127,300
Accounts receivable	1,124,400		1,158,200		(33,800	)
Inventory	1,852,600		1,702,600		150,000
Property, plant, and equipment	3,300,400		2,951,400		349,000
Accumulated depreciation	(1,174,500	)	(1,048,100	)	(126,400	)
Investment in Myers Co.	312,300		273,800		38,500
Loan receivable	250,100		—		250,100
Total assets	$6,486,600		$5,731,900		$754,700

Accounts payable	$1,019,600		$959,800		$59,800
Income taxes payable	29,800		50,100		(20,300	)
Dividends payable	79,400		99,100		(19,700	)
Lease liabililty	408,500		—		408,500
Common stock, $1 par	500,000		500,000		—
Paid-in capital in excess of par—common stock	1,504,000		1,504,000		—
Retained earnings	2,945,300		2,618,900		326,400
Total liabilities and stockholders’ equity	$6,486,600		$5,731,900		$754,700

Additional information:

1.		On December 31, 2019, Kingbird acquired 25% of Myers Co.’s common stock for $273,800. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,095,200. Myers reported income of $154,000 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2.		During 2020, Kingbird loaned $309,100 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $59,000, plus interest at 10%, on December 31, 2020.
3.		On January 2, 2020, Kingbird sold equipment costing $59,500, with a carrying amount of $38,400, for $39,900 cash.
4.		On December 31, 2020, Kingbird entered into a capital lease for an office building. The present value of the annual rental payments is $408,500, which equals the fair value of the building. Kingbird made the first rental payment of $59,800 when due on January 2, 2021.
5.		Net income for 2020 was $405,800.
6.		Kingbird declared and paid the following cash dividends for 2020 and 2019.

	*2020*	2019
Declared	December 15, 2020	December 15, 2019
Paid	February 28, 2021	February 28, 2020
Amount	$79,400	$99,100

Prepare a statement of cash flows for Kingbird Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

In: Accounting

Problem 23-01 Your answer is partially correct. Try again. The following are Marigold Corp.’s comparative balance...

Problem 23-01


	Your answer is partially correct. Try again.

The following are Marigold Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS
	*2020*		2019		Increase (Decrease)
Cash	$810,600		$701,400		$109,200
Accounts receivable	1,135,300		1,156,300		(21,000	)
Inventory	1,850,800		1,708,800		142,000
Property, plant, and equipment	3,318,800		2,955,300		363,500
Accumulated depreciation	(1,164,400	)	(1,035,600	)	(128,800	)
Investment in Myers Co.	307,400		277,400		30,000
Loan receivable	248,800		—		248,800
Total assets	$6,507,300		$5,763,600		$743,700

Accounts payable	$1,015,700		$949,200		$66,500
Income taxes payable	30,200		50,000		(19,800	)
Dividends payable	79,500		100,400		(20,900	)
Lease liabililty	423,200		—		423,200
Common stock, $1 par	500,000		500,000		—
Paid-in capital in excess of par—common stock	1,499,000		1,499,000		—
Retained earnings	2,959,700		2,665,000		294,700
Total liabilities and stockholders’ equity	$6,507,300		$5,763,600		$743,700

Additional information:

1.		On December 31, 2019, Marigold acquired 25% of Myers Co.’s common stock for $277,400. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,109,600. Myers reported income of $120,000 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2.		During 2020, Marigold loaned $323,600 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $74,800, plus interest at 10%, on December 31, 2020.
3.		On January 2, 2020, Marigold sold equipment costing $59,700, with a carrying amount of $37,700, for $39,900 cash.
4.		On December 31, 2020, Marigold entered into a capital lease for an office building. The present value of the annual rental payments is $423,200, which equals the fair value of the building. Marigold made the first rental payment of $60,000 when due on January 2, 2021.
5.		Net income for 2020 was $374,200.
6.		Marigold declared and paid the following cash dividends for 2020 and 2019.

	*2020*	2019
Declared	December 15, 2020	December 15, 2019
Paid	February 28, 2021	February 28, 2020
Amount	$79,500	$100,400

Prepare a statement of cash flows for Marigold Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

In: Accounting

The following are Flounder Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with...

The following are Flounder Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS
	*2020*		2019		Increase (Decrease)
Cash	$822,600		$700,100		$122,500
Accounts receivable	1,139,300		1,157,900		(18,600	)
Inventory	1,835,600		1,726,700		108,900
Property, plant, and equipment	3,276,300		2,980,900		295,400
Accumulated depreciation	(1,165,600	)	(1,047,400	)	(118,200	)
Investment in Myers Co.	312,200		272,500		39,700
Loan receivable	251,900		—		251,900
Total assets	$6,472,300		$5,790,700		$681,600

Accounts payable	$1,016,000		$949,400		$66,600
Income taxes payable	30,200		49,700		(19,500	)
Dividends payable	79,200		99,100		(19,900	)
Lease liabililty	355,000		—		355,000
Common stock, $1 par	500,000		500,000		—
Paid-in capital in excess of par—common stock	1,501,300		1,501,300		—
Retained earnings	2,990,600		2,691,200		299,400
Total liabilities and stockholders’ equity	$6,472,300		$5,790,700		$681,600

Additional information:

1.		On December 31, 2019, Flounder acquired 25% of Myers Co.’s common stock for $272,500. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,090,000. Myers reported income of $158,800 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2.		During 2020, Flounder loaned $255,500 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $3,600, plus interest at 10%, on December 31, 2020.
3.		On January 2, 2020, Flounder sold equipment costing $59,600, with a carrying amount of $37,800, for $39,900 cash.
4.		On December 31, 2020, Flounder entered into a capital lease for an office building. The present value of the annual rental payments is $355,000, which equals the fair value of the building. Flounder made the first rental payment of $60,100 when due on January 2, 2021.
5.		Net income for 2020 was $378,600.
6.		Flounder declared and paid the following cash dividends for 2020 and 2019.

	*2020*	2019
Declared	December 15, 2020	December 15, 2019
Paid	February 28, 2021	February 28, 2020
Amount	$79,200	$99,100

Prepare a statement of cash flows for Flounder Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

In: Accounting

The following are Waterway Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with...

The following are Waterway Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

COMPARATIVE BALANCE SHEETS
	*2020*		2019		Increase (Decrease)
Cash	$807,900		$696,100		$111,800
Accounts receivable	1,130,100		1,166,300		(36,200	)
Inventory	1,850,400		1,707,300		143,100
Property, plant, and equipment	3,324,100		2,995,100		329,000
Accumulated depreciation	(1,163,100	)	(1,032,700	)	(130,400	)
Investment in Myers Co.	308,700		277,600		31,100
Loan receivable	250,800		—		250,800
Total assets	$6,508,900		$5,809,700		$699,200

Accounts payable	$1,019,400		$949,200		$70,200
Income taxes payable	30,100		50,300		(20,200	)
Dividends payable	79,800		99,100		(19,300	)
Lease liabililty	389,500		—		389,500
Common stock, $1 par	500,000		500,000		—
Paid-in capital in excess of par—common stock	1,499,000		1,499,000		—
Retained earnings	2,991,100		2,712,100		279,000
Total liabilities and stockholders’ equity	$6,508,900		$5,809,700		$699,200

Additional information:

1.		On December 31, 2019, Waterway acquired 25% of Myers Co.’s common stock for $277,600. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,110,400. Myers reported income of $124,400 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year.
2.		During 2020, Waterway loaned $289,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $38,400, plus interest at 10%, on December 31, 2020.
3.		On January 2, 2020, Waterway sold equipment costing $60,500, with a carrying amount of $38,400, for $39,800 cash.
4.		On December 31, 2020, Waterway entered into a capital lease for an office building. The present value of the annual rental payments is $389,500, which equals the fair value of the building. Waterway made the first rental payment of $60,100 when due on January 2, 2021.
5.		Net income for 2020 was $358,800.
6.		Waterway declared and paid the following cash dividends for 2020 and 2019.

	*2020*	2019
Declared	December 15, 2020	December 15, 2019
Paid	February 28, 2021	February 28, 2020
Amount	$79,800	$99,100

Prepare a statement of cash flows for Waterway Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

WATERWAY CORP. Statement of Cash Flows

In: Accounting

Find and briefly describe a real-life example of essential government intervention in an essentially market at...

Find and briefly describe a real-life example of essential government intervention in an essentially market at any time previously anywhere in the world, which is similar to the US Federal Reserve's rate cut decision. Did that intervention produce its intended results? How can that example be used to inform the stated aims of the rate cut decision (2020)?

With your own words, do not copy-paste from the internet.

In: Economics

Individual Case Study 2 Master Budget, Cash Budget and Budgeted Income Statement After two years study...

Individual Case Study 2 Master Budget, Cash Budget and Budgeted Income Statement

After two years study at UCW, you finally graduate and start a job as Junior accountant at All About The Beard Inc.(AATB). Your manager is responsible for the national distribution of men grooming sets. Because of the new fashion style among current generation, the company has grown rapidly, and the prompt growth forces the management team to improve their efficiency and manage their production effectively.

You have just been given responsibility for all planning and budgeting of the entire men grooming set division. Today is your first day, you have just given an assignment to prepare master budget for the manager, who needs to present the budget and discuss the financial objectives with the shareholders tomorrow. During your job interview, you clearly stated that you gained managerial accounting knowledge and hand on experience during your MBA study.

Your first assignment is to prepare a master budget for the next fiscal year, starting October 1, 2020. The office manager brought a pile of files on your desk including the past sale records, product information, manufacture schedule and supplier pricing list. Now, you realized that you should have pay more attention during the lecture rather than checking your social media page. Now, you don’t know where to start. Fortunately, you remember that you still kept a copy spreadsheet of the master budget template in your computer from the accounting course during your MBA study.

Note: The company desires a minimum ending cash balance each quarter on $35,000. The beard grooming products are sold to retailers for $20 each and the sales have been stagnant due to the Covid-19. However, the marketing department has been positive toward the end of the year due to season change and upcoming holiday. The marketing department has just sent you their forecasted quarter sales and marketing budget.

Quarter

2020 Q4

2021 Q1

2021 Q2

2021 Q3

2021 Q4

2022 Q1

Sales in Unit

30,000

35,000

40,000

65000

68000

70,000

Marketing Expenses

$35,000

$20,000

$45,000

The increased sales volume before and during June and January is due to Father’s Day and holidays with AATB being a favorite. Ending finished goods inventories are supposed to be equal to 20% of the next quarter’s sales in units. AATB currently does its own assembly production in house. Each unit consists of 3 shaves and the cost of each is $1.50. Each unit needs 0.10 labour hour from assemble to finish package. The hourly pay rate to the assembling workers is $15 per hour. The production manager also required desired direct material ending inventory to 30% of the next quarter production.

Purchases are paid for in the following manner: 50% in the quarter of the purchase and the remaining 50% paid in the quarter following the purchase. All sales to the distributors are made on credit terms with no discount (for now), and payable within 15 days. The AATB has determined that only 50% of sales are collected by the end of the quarter in which the sale occurred. An additional 30% is collected in the quarter following the sale, and the remaining 20% is collected in the second quarter following the sale. Bad debts have been negligible, supporting the credit terms as favorable.

Below is a display of the AATB division monthly manufacture overhead and selling and administrative expenses:

Manufacture Overhead

Variable:

Indirect labour $0.5 per labour hour

Indirect Materials $0.2 per labour hour

Fixed:

Wages and Salaries $2,000 per month

Utilities $1,500 per month

Insurance $2,000 per month

Depreciation $2,000 per month

Selling and Administrative

Variable:

Sales Commissions $1 per unit

Fixed (Monthly) :

Wages and Salaries $22,000

Utilities $6,000

Insurance $1,200

Depreciation $1,500

Miscellaneous $3,000

Labour, Manufacture Overhead, and Selling and Administrative expenses are all paid during the month, in cash, with the exception of depreciation (of course). AATB will make a purchase of a parcel of land during the first quarter of 2021 for $22,500 cash. AATB contributes to the corporate dividend at a rate of $12,000 each quarter, payable in the first month of the following quarter. AATB’s balance sheet at the end of the third quarter is shown below:

Assets

Cash $14,000

Accounts receivable ($48,000 sales in Q2 and $152,000 in Q3 this year ) $200,000

Liabilities

Accounts payable $85,700

An agreement with Bank of the West allows AATB to borrow in increments of $1,000 at the beginning of each month, up to a total loan amount of $550,000. The interest rate on these loans is 12% annually (pretty high considering market rates) but the interest is not compounded, meaning this is simple interest only.

Required:

Prepare a master budget for twelve months from Oct, 2020 to Oct, 2021. Include the following budget schedules and financial statements:

1) Master Budget

2) Cash Budget. Show the cash budget by month and in total.

3) Budgeted Income statement

In: Accounting

Identifiable Intangibles and Goodwill, U.S. GAAP International Foods, a U.S. company, acquired two companies in 2019....

Identifiable Intangibles and Goodwill, U.S. GAAP

International Foods, a U.S. company, acquired two companies in 2019. As a result, its consolidated financial statements include the following acquired intangibles:

Intangible Asset	Date of Acquisition	Fair Value at Date of Acquisition	Useful Life
Customer relationships	January 1, 2019	$4,000,000	4 years
Favorable leaseholds	June 30, 2019	8,000,000	5 years
Brand names	June 30, 2019	18,000,000	Indefinite
Goodwill	January 1, 2019	500,000,000	Indefinite

Goodwill was assigned to the following reporting units:

Asia	$100,000,000
South America	150,000,000
Europe	250,000,000
Total	$500,000,000

It is now December 31, 2020, the end of International Foods’ accounting year. No impairment losses were reported on any intangibles in 2019. Assume that International Foods bypasses the qualitative option for impairment testing of goodwill and indefinite-life intangibles. Additional information at December 31, 2020 is as follows:

Intangible Asset	Sum of Future Expected Undiscounted Cash Flows	Sum of Future Expected Discounted Cash Flows
Customer relationships	$1,200,000	$900,000
Favorable leaseholds	6,000,000	4,400,000
Brand names	14,000,000	7,000,000

Reporting Unit	Unit Carrying Value	Unit Fair Value
Asia	$300,000,000	$400,000,000
South America	200,000,000	350,000,000
Europe	600,000,000	500,000,000

Required

Compute 2020 amortization expense and impairment losses on the above intangibles, following U.S. GAAP.

Enter answers in millions, using decimal places when applicable.

(in millions)
Amortization expense - identifiable intangibles	$Answer
Impairment losses - identifiable intangibles	Answer
Goodwill impairment loss	Answer
Total	$Answer

In: Accounting

select any company that you would like to work for and b) decide the position you...

select any company that you would like to work for and b) decide the position you want to apply for (salesperson, in marketing, trainee, Intern, etc.), then prepare:

c) A post interview email.

In: Operations Management