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Illustration 8.1 states the six principles of control (below). How do you think these principles of controls apply any organization. Ø Establishment of responsibility Ø Segregation of duties Ø Documentation procedures Ø Physical, mechanical, and electronic controls Ø Independent int

A Discussion On EBIT-EPS Calculations

Moon and Chittenden are considering a new Internet venture to sell used textbooks. The project requires $300,000 in financing. Two alternatives have been proposed. Plan 1 (Common equity financing). Sell 30, 000 shares of stock at a net price of $10 per share. Plan 2 (Debt equity financing). Sell a combination of 15,000 sha

McFrugal, Inc. - Leverage and EPS

McFrugal, Inc. has expected sales of $20 million. Fixed operating costs are $2.5 million, and the variable cost ratio is 65 percent. McFrugal has outstanding a $12 million, 8 percent bank loan. The firm also has outstanding 1 million shares of common stock ($1 par value). McFrugal's tax rate is 40 percent. a. What is McFrugal

Ivan Rice is a new accountant with Wertz Company.

P-2. Ivan Rice is a new accountant with Wertz Company. Wertz purchased merchandise on account for $6,000. The credit terms are 2/10, n/30. Ivan has talked with the company's banker and knows that he could earn 10% on any money invested in the company's savings account. Instructions (a) Should Ivan pay the invoice within t

Theory of Constraints

Question: Taylor company produces two industrial cleansers that use the same liquid chemical input: pocolimpio and maslimpio. Pocolimpio uses two quarts of the chemical for every unit produced, and maslimpio uses five quarts. Currently, Taylor has 6,000 quarts of the material in inventory. All of the material is imported. For

Gallup Corporation

Instructions: Prepare a schedule showing a vertical analysis for 2009 and 2008. ***See attached word document please GALLUP CORPORATION Operating Data 2009 2008 Sales $750,000 $600,000 Cost of goods sold 465,000 390,000 Selling expenses 120,000 72,000 Administrative expenses 60,000 54,000 Income tax expense 33,00

Analyzing accounting data

Explain, Show along with how and why this transaction fits into accounting equation. Looking at this it would make no sense that it would equal out in the books? SEPT 1-SIGNED UP FOR CLASS AT COLLEGE. COST 1,000.00. PUT THIS ON BUSINESS CREDIT CARD SEPT 20-TRANSFERRED 2,500 FROM PERSONAL SAVINGS TO BUSINESS CHECKING SE

Wyalusing and Fairmont: Return on Investment and Residual Income

Wyalusing Industries manufactured prefabricated house. They expanded into pre-cut housing when it acquired Fairmont. Wyalusing uses ROI as a performance measure with investment defined as average productive assets. Management bonuses are based in part of the return on investment (ROI). All investments are expected to earn a mini

Accounting Manager - Financials

I have just purchased a small mfg. company that does not have an accounting manager. We Mfg. 3 to 5 products from raw materials to the finished product. I have hired two (2) two year accounting graduates to work in the accounting dept. One will be the accounting manager and the other will be the assistant and complete othe

Ratios: Common Size and Trend Percents

This file contains examples in the preparation and calculation of financial ratios; both - common size percents and trend percents for the Bluegrass Corporation. Examples which can used to calculate relevant financial ratios for any company.

Return on Investment and Residual Income - Westwood Inc

Westwood Inc. is a decentralized organization with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company's Office Products Division for the most recent year are given below: Sales

Case analysis - Texas Instruments and HP

Hello I am preparing for an exam and my instructor indicated it will be very familiar to this article. I am hoping an OTA can help me interpret the case. I have to answer the following question and give an in-depth analysis. Given the difference in strategy between the two firms within the case , what would you expect woul

Income Tax Expense, Investment Revenue, and Tax Liabilities

1. For its first year of operations Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income 300,000 Permanent difference (15,000) 285,000 Temporary difference - depreciation (20,000

Who must file a tax return in 2007?

A) Ben, age 19, a full-time college student, he is claimed as a dependent by his parents. He earned $5,400 wages during the year. b) Anita, age 12, is claimed as a dependent by her parents. She earned interest income of $1,200 during the year. c) Earl, age 16, is claimed as a dependent by his parents. He earned wages o

Compute taxable income for Marjory

Compute the taxable income for 2007 for Marjory on the basis of the following information. Marjory is married but has not seen or heard from her husband since 2005. Salary $6,000 Interest on bonds issued by city of Independence (MO) 2,000 Interest on CD issued by Hivernia Natio

Minimum Price & Transfer Price Questions

Allied Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Allied then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate

Addressing Accounting Policies

Accounting Principle Board (APB) Opinion No. 22 and the Emerging Issues Task Force (EITF) have both addressed the disclosure of accounting polices. If you should examine the requirements mandated by the APB Opinion No. 22. Also, the list and summarize the supplemental guidance issues addressed by the Emerging Issues Task Forc


1. Prepare report showing budgeted and actual costs for patients. Show variances. Working with spending variances and efficiency variance. Medical assistants 1580 patients $14.00 per hour standard wage -- each asst. expected to spend 30 minutes w/ patient Assistants total 840 hours @ average pay rate of $15.50 Ans

Error Corrections and Accounting Changes - Patricia Voga Company

P22-3 (Error Corrections and Accounting Changes) Patricia Voga Company is in the process of adjusting and correcting its books at the end of 2008. In reviewing its records, the following information is compiled. 1. Voga has failed to accrue sales commissions payable at the end of each of the last 2 years, as follows. Decembe

The standards for one carton of Special Soap are as follows

Please see the problem below and provide the answer to "e" and "f" only. Thank you The standards for ONE carton of Special Soap are as follows: Direct materials ....................................... 4 lbs. @ $ 5.10/lb. Direct labor ............................................ 3 hrs @ $10.50/hr. Variable Overhead

Automobile Support Company

Required: a. What are the objectives for a standard system? How are these objectives being met and not met with the current system? b. Prepare a set of recommendations for changes in the system. What implementation issues will be raised by your recommendations?

Use the expanded accounting equation to compute the missing quantity.

Accounting: Concepts and Applications, 9eChapter 2: Financial Statements ISBN: 0324187564 Author: W. Steve Albrecht, James D. Stice, Earl K. Stice, Monte R. Swain Citation Generator Practice 2-14 Expanded Accounting Equation For the following four cases, use the expanded accounting equation to compute the missing

Future Taxable Amounts and Deferred Taxes

I have a problem on future taxable amounts and deferred taxes and I am totally lost. The information is attached. I don't know where to begin the calculations. I need some help with this problem. The following information is available for a corporation for 2006. 1. Exess of tax depreciation over book depreciation, $40,00

Manufacturing overhead budget and budget income statement

Problem 1 Prepare a manufacturing overhead budget For Savage Inc. variable manufacturing overhead cost are expected to be $20,000 in the first quarter of 2005 with $2,000 increments in each of the remaining three quarters. Fixed overhead cost are estimated to be $35,000 in each quarter. Instructions Prepare the manufa