Question 2 [20 Marks]

You are provided with the following information. Conduct an ABC analysis, categorising each item of stock appropriately. (80% = A, 15% = B, 5%=C

>Prepare t-accounts for cash, A/R, the allowance for DA, Income statement

>Prepare journal entries for each situation

>Find net accounts receivable

-Nonprofit organization begins 2019 with a balance in A/R of $14,000.

-The company has an allowance for doubtful accounts beginning balance of 2000.

-During 2019, the company has credit sales of $300,000.

-Bad debt expense is 2% of credit sales.

-Cash collections of A/R are $290,000.

-Accounts written off were 4500 for the year.

Table 12.22 gives the gold medal times for every other Summer Olympics for the women’s 100-meter freestyle (swimming).

Table 12.22

Estimate for the next Summer Olympics 2019. __________     Do you think this is a good estimate? _____ (2 points)

    Why or why not?

g. Does it appear that a line is the best way to fit the data? Why or why not?

h. Are there any outliers in the data?

i. Based on these results, what would be the probate fees and taxes for an estate that does not have any assets?

j. What is the slope of the least-squares (best-fit) line? Interpret the slope

Given the following 4 alternatives, the best alternative using the incremental ROR analysis at MARR= 13% is:

Group of answer choices

Alt. 1

Alt. 2

Alt. 3

Alt. 4

Required: Advise Newtech as to the GST implications for the following transactions:

An IT development firm, Newtech, which is registered for GST, undertakes the following transactions for the GST period (where GST applies, prices are GST inclusive):

• Purchases of fresh fruit from a major supermarket for the staff room: $1000.
• Purchase of a new laptop from a major department store: $2000.
• Payment of staff salaries: $300,000.
• Payment of water utilities bill: $500.
• Sales of services: $600,000.

subject principles of income tax

John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit $X every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account?

Kelly Owns a Condo in Wisconsin. During the year, Kelly uses the condo a total of 25 days. The condo is also rented out for a total of 75 days and generates rental income of $14,000. Kelly incurs the following expenses:

Mortgage Interest: $5000
Property Taxes: $2400
Utilities: $2000
Insurance: $1000
Depreciation: $10500

Using the IRS method of allocating expenses, the amount of depreciation that Tamara may take with respect to the rental property will be:

A) $1050
B) $5074
C) $6200
D) $10500

Two identical firms compete in a Bertrand duopoly. The firms produce identical products at the same constant marginal cost of MC = $10. There are 2000 identical consumers, each with the same reservation price of $30 for a single unit of the product (and $0 for any additional units). Under all of the standard assumptions made for the Bertrand model, the equilibrium prices would be Group of answer choices $10 for both firms $30 for both firms $50 for both firms $10 for one firm, $30 for the other firm