On January 1, 2018, Sledge had common stock of $160,000 and retained earnings of $300,000. During that year, Sledge reported sales of $170,000, cost of goods sold of $90,000, and operating expenses of $44,000.

On January 1, 2016, Percy, Inc., acquired 70 percent of Sledge's outstanding voting stock. At that date, $64,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $24,000 to an undervalued building (with a 10-year remaining life).

In 2017, Sledge sold inventory costing $10,450 to Percy for $19,000. Of this merchandise, Percy continued to hold $9,000 at year-end. During 2018, Sledge transferred inventory costing $14,400 to Percy for $24,000. Percy still held half of these items at year-end.

On January 1, 2017, Percy sold equipment to Sledge for $14,000. This asset originally cost $20,000 but had a January 1, 2017, book value of $9,800. At the time of transfer, the equipment's remaining life was estimated to be five years.

Percy has properly applied the equity method to the investment in Sledge.

1. Prepare worksheet entries to consolidate these two companies as of December 31, 2018.
2. Compute the net income attributable to the noncontrolling interest for 2018.

Hartman, Inc. has prepared the following comparative balance sheets for 2017 and 2018:

                                                                                                          2018                      2017      

         Cash                                                                                    $   282,000             $  153,000

         Accounts receivable                                                                 139,000                 117,000

         Inventory                                                                                   150,000                 180,000

         Prepaid expenses                                                                      18,000                   27,000

         Plant assets                                                                           1,295,000              1,050,000

         Accumulated depreciation                                                       (450,000)              (375,000)

         Patent                                                                                       153,000                 174,000

                                                                                                      $1,587,000            $1,326,000

         Accounts payable                                                                $   153,000            $   168,000

         Accrued liabilities                                                                       60,000                   42,000

         Mortgage payable                                                                          —                     450,000

         Preferred stock                                                                         525,000                      —

         Additional paid-in capital—preferred                                       120,000                      —

         Common stock                                                                         600,000                 600,000

         Retained earnings                                                                    129,000                   66,000

                                                                                                      $1,587,000            $1,326,000

1.   The Accumulated Depreciation account has been credited only for the depreciation expense for the period.

2.   The Retained Earnings account has been charged for dividends of $138,000 and credited for the net income for the year.

      The income statement for 2018 is as follows:

Sales revenue                                     $1,980,000

Cost of sales                                         1,089,000

Gross profit                                              891,000

Operating expenses                                690,000

Net income                                         $   201,000

Instructions

(a)    From the information above, prepare a statement of cash flows (indirect method) for Hartman, Inc. for the year ended December 31, 2018.

(b)    From the information above, prepare a schedule of cash provided by operating activities using the direct method.

On January 1, 2017, Fro-Yo Inc. began offering customers a cash rebate of $5.00 if the customer mails in 10 proof-of-purchase labels from its frozen yogurt containers. Based on historical experience, the company estimates that 20% of the labels will be redeemed. During 2017, the company sold 5,000,000 frozen yogurt containers at $1, cash, per container. From these sales, 800,000 labels were redeemed in 2017, 150,000 labels were redeemed in 2018, and the remaining labels were never redeemed.

Required:

On December 1, 2016, Insto Photo Company purchased merchandise, invoice price $23,000, and issued a 6%, 120-day note to Ringo Chemicals Company. Insto uses the calendar year as its fiscal year and uses the perpetual inventory system.

ABC Corporation purchased a land for P500,000 during 2017 and chooses the revaluation model in accounting for its land . The following information relates to that land , which is the only land asset owned by the company , December 31, 2017- Fair value P520,000. Dec 31, ,2018- Fair Value P470,000. December 31 , 2019- Fair Value P510,000.a) What is the amount of unrealized gain on revaluation-land for the year 2017?_______. b.) How much is the accumulated other comprehensive income for the year 2017 to be recognized in the balance sheet?_____accumulated other comprehensive income. c) What is the amount of unrealized gain on realization -land for the year 2018?_____D.)How much is the impairement loss for the year 2018?____impairement loss. e)How much is the accumulated other comprehensive income for the year 2018 to be recognized in the balance sheet?____.f)How much is the recovery of impairement loss and revaluation gain on land for the year 2019?____.g) What is the amount of unrealized gain on revaluation-land for the year 2019?h)If the land was sold on January 10,2020 for Php 515,000 How much is the gain on sale of land?_____.i)How much is the accumulated other comprehensive income to be recycledto the retained earrnings as a result of the gain on sale of land?_____

Gary Farmer had the following sales of business property during the 2018 tax year:

1. Sold land acquired on December 3, 2007, at a cost of $24,000, for $37,000 on January 5, 2018. The cost of selling the land was $500, and there was no depreciation allowable or capital improvements made to the asset over the life of the asset.
2. Sold a business computer with an adjusted basis of $20,700 that was acquired on April 5, 2015. The original cost was $25,875, and accumulated depreciation was $5,175. The computer was sold on May 2, 2018, for $14,000, resulting in a $6,700 loss.
3. Sold equipment on July 22, 2018 for gross proceeds of $16,000. The equipment was acquired on October 21, 2017 at a cost of $25,000 and accumulated depreciation was $4,300 at the time of the sale. Gary used an equipment broker on this sale and paid a sales commission of $1,600.

Calculate Gary’s net gain or loss and determine the character as either capital or ordinary (ignore any depreciation recapture).

The land and computer  are Section 1231 properties, resulting in a net Section 1231 gain  of $. This is treated as a net long-term capital gain . The equipment  is treated as an ordinary asset . As such it results in an ordinary loss  of $._______________

Goehler, Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2017, at an amount in excess of Kenneth's fair value. On that date, Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life). Goehler has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life). On December 31, 2018, Goehler has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000.

18) If Goehler applies the equity method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

A) $1,104,000.

B) $1,080,000.

C) $1,468,000.

D) $1,475,000.

E) $1,100,000.

19) If Goehler applies the partial equity method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

A) $1,475,000.

B) $1,080,000.

C) $1,468,000.

D) $1,100,000.

E) $1,104,000.

20) If Goehler applies the initial value method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

A) $1,080,000.

B) $1,104,000.

C) $1,475,000.

D) $1,100,000.

E) $1,468,000.

Please show works, Thanks!

Woodmier Lawn Products introduced a new line of commercial sprinklers in 2017 that carry a one-year warranty against manufacturer’s defects. Because this was the first product for which the company offered a warranty, trade publications were consulted to determine the experience of others in the industry. Based on that experience, warranty costs were expected to approximate 3% of sales. Sales of the sprinklers in 2017 were $2,850,000. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product:

  
In late 2018, the company's claims experience was evaluated and it was determined that claims were far more than expected—4% of sales rather than 3%.

Required:
1. Assuming sales of the sprinklers in 2018 were $3,950,000 and warranty expenditures in 2018 totaled $98,500, prepare any journal entries related to the warranty.
2. Assuming sales of the sprinklers were discontinued after 2017, prepare any journal entries in 2018 related to the warranty.

QUESTION 52

1. The XYZ Corporation reported the following balance sheet data for 2018 and 2017:
   

   ​	2018	2017
   Cash	$60,375	$22,955
   Available-for-sale debt securities	​	​
   (not cash equivalents)	15,500	85,000
   Accounts receivable	91,000	68,250
   Inventory	165,000	145,000
   Prepaid insurance	1,500	2,000
   Land, buildings, and equipment	1,260,000	1,125,000
   Accumulated depreciation	(610,000)	(572,000)
   Total assets	$983,375	$876,205
   Accounts payable	$70,340	$148,670
   Salaries payable	20,000	24,500
   Notes payable (current)	25,000	75,000
   Bonds payable	200,000	0
   Common stock	300,000	300,000
   Retained earnings	368,035	328,035
   Total liabilities and shareholders' equity	$983,375	$876,205

   
   Additional information for 2018:
   (1.) Sold available-for-sale debt securities costing $69,500 for $74,000.
   (2.) Equipment costing $20,000 with a book value of $5,000 was sold for $6,000.
   (3.) Issued 6% bonds payable at face value, $200,000.
   (4.) Purchased new equipment for $155,000 cash.
   (5.) Paid cash dividends of $20,000.
   (6.) Net income was $50,000.
   
   Required:
     
   Prepare a statement of cash flows for 2018 in good form using the indirect method for cash flows from operating activities. USE Worksheet Provide in class.

1. Take the Starbucks balance sheet (2018) and calculate the % of each account to the total of that section of the balance sheet (cash as a % of total assets, ST investments as a % of total assets......., then A/P as a % total of total liabilities, etc) Do this for all categories under assets, liability and equity. Perform the calculations on 2018 only.

2. What is the accounting equation for Starbucks as of 2017 and 2018?

3. What is the value (market cap) of Starbucks at Sep. 30, 2018?

For ALL of the following DO NOT GIVE ME JUST DEFINITIONS. It must be explained in the context of and using specifically the Starbucks financial results/statements, .

4. What are inventories? (minimum 100 words)

4a. What is the difference between Long-term and short-term investments? (minimum 100 words)

4b.What is the difference between accounts payable and accrued liabilities? (minumum 100 words)

4c. What is deferred revenues? Why is it a liability? (minimum 100 words)

4d. What is the difference between common and preferred stock (this is not on the Starbucks balance sheet thus reference to the book) - minimum 100 words.

4e. What is additional paid-in-capital? (minimum 100 words).

4f. What is retained earnings. (minimum 100 words)

Misha Enterprises, a rapidly growing call center in Northeast Michigan, services clients across the United States. Businesses contract with Misha to provide external outbound calls in the following areas: customer satisfaction surveys, marketing research surveys, and fundraising for non-profit organizations. Misha was established in 1992 by Anela Ainsley, who founded the business in her basement. It expanded rapidly and moved to its current location in 1997. Fortunately, because of its niche market and responsiveness to its customer base, Misha has not been negatively impacted by the current trend of outsourcing call center activities to international companies.

Middle Management Turnover

Misha uses a part-time, multi-shift hourly workforce for outbound calling. Misha has had good success hiring its hourly workforce. Both name recognition and its status as one of a handful of employers in the area has created a candidate pool of hourly workers who have a tendency to remain in their positions for a long time.

But Misha has not been as successful hiring call center managers. The company requires its managers to be degreed professionals with call center experience, but the nearest university is 150 miles away. As a result, Misha usually recruits candidates from larger cities who desire a rural lifestyle, as well as Misha employees who left the area to complete a bachelors degree and have since returned to the area.

The call center is managed by Chauncey LaBrad, the general manager, who is skilled at selling contracts and gaining new business. He's also responsible for all profit and loss and cash flow for Misha, as well as overseeing operations. He reports directly to the owner, Anela, with whom he has worked for more than 10 years.

The two call center managers, Helen Kenjor and Linda Kamis, report directly to Chauncey. Turnover is high for this call center management position. Chauncey has told Anela that he thinks the requirements for a bachelors degree and call center experience are unnecessary for the position. In fact, he has told Anela, “If I knew Helen was working on her MBA, I never would have hired her.”

Anela has decided to enter into other business ventures and dedicate more of her time to racing horses, so she is frequently out of the office. She founded the organization on the principals of providing a high level of service to clients while remaining profitable, and when she was in the office daily, Misha retained a growth of 10% per year. Under Chauncey’s direction, however,

Misha is growing at just 2% per year. Worse yet, in addition to having trouble retaining call center managers, Chauncey also is unable to retain sales employees.

Skill Disparities

Over the years, Misha has had to hire additional employees as the organization has grown. In addition to hiring more help, the company has invested in technology with predictive dialers and a sales database that is both a customer service management tool for tracking contacts and preferences, and a statistical reporting tool. While Misha’s managers can operate the sales software, some of its tenured employees struggle with it. Admittedly, Misha brought the software when it was recruiting a new call center manager, so the training was not as thorough as originally planned. As a result, the tenured employees have exceptional customer service experience but are unable to log information in the database accurately. They remember client preferences and characteristics by making personal, handwritten notes.

This customer information is not shared with other employees, which has been problematic, but not disastrous. The tenured employees have a tendency to share their notes with each other, but do not share with employees who were hired within the past three years. This occurs because they simply have not formed strong relationships with the newer employees. Because they remain connected to a headset all day, talking to clients, they have little time to socialize with their colleagues like they did back in the day when they were manually dialing the phone.

The newly hired employees are more technically savvy and have taken ownership of learning the database software. They see the value in the software and keep all of their notes in the database. They are able to pull reports to help them manage their time and can calculate their bonus potential on a real-time basis, which keeps them motivated. These employees have established an instantaneous competency in system utilization despite the fact that they have had no training. But while these employees have exceptional software competencies, they lack customer service experience.

An example of their deficient customer service skills was recently brought to light when a newly- hired employee, who was soliciting donations, told a telemarketing prospect:

Unfortunately, I do not have the time to listen to the story about your child’s first day of school. I have to make more calls because my job is on the line if I do not make 50 calls by the end of the evening. I am sure you understand. Did you want to renew your contribution of $100 from last year?

While this employee received appropriate disciplinary action, the exchange is indicative of the type of customer service problems that exist among the employees who were hired during the past three years.

Write a letter in block format or a memo (select the correct format, per BCOM) and address it to Anela Ainsley. (This should not be a recap of your team meeting or a letter to me.) In the document, provide a brief description of the problems. Identify the facts and discuss the key problems. Consider the following before making recommendations:

· How should Anela Ainsley handle the managerial employee turnover problem? On what do you base this suggestion?

· How would you design training, and how would you test whether the training was successful, considering the disparity of skills in the workforce?

· What can be done to help the employees build rapport so the “tenured” vs. “newly hired” divisions are less obvious?

In the closing cite the benefits of your recommendations in a succinct, truthful and tactful manner. Also keep in mind that since you are consulting, you wish to land future business from Misha Enterprises. So be sure to establish your credibility for future projects through your skillful analysis and solutions.