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Administration and Accounting Departments

I have been running my own business for the last 15 years and I have BS degree in accounting. Because of my business management experience and accounting education, as a partner of a newly established business consulting firm, the consulting has appointed me be the manager for the administrative and accounting departments. I

Partnership Basis in Land

Betty's basis in her partnership interest is $90,000 and she receives distributions of $35,000 cash and inventory (basis to the partnership of $22,000 and a fair market value of $28,000). No land is distributed. (A) How much gain or loss, if any, must Betty recognize as a result of the distribution. (B) What basis will Betty

Variance Analysis for Materials and Labour Costs

Based on the following: Direct materials: Standard price per pound: $9 Actual price per pound: $8 Price variance: $20,000 F Total of direct-material variances: $2,000 F Direct labor: Actual hours worked: 40,000 Actual rate per hour: $15 Efficiency variance: $28,000 F

Net realizable value method

Here, two or more units of the software are sold as a single package. Managers at Software For You are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows: Stand-Alone Selling Price

Contribution Margin

Aromatic Coffee, Inc., sells two types of coffee, Colombian and Blue Mountain. The monthly budget for U.S. coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the U.S. market. The following information is provided for March:

Operating Income and Transfer Price

The Mill Flow Company has two divisions. The Cutting Division prepares timber at its sawmills. The Assembly Division prepares the cut lumber into finished wood for the furniture industry. No inventories exist in either division at the beginning of 20x3. During the year, the Cutting Division prepared 60,000 cords of wood at a cos

ROI Analysis for Mikey Co.

Mikey Co. group managers are evaluated annually with bonuses awarded based on ROI. In the previous fiscal year, Mikey produced 12% return on investments. This year Mikey is considering an investment that will assist in future growth in the Cooper group. Relevant data is as follows: Cooper


ABC Company has developed the following standard costs for its product Product 1 cost element:Standard Quantity x Standard Price = Unit Standard Cost Direct Materials 3 pounds x $2 = $6 Direct Labor 2 hours x $8 = $16 Manufacturing Overhead2 hours x $4 = $8 Total = $30 ABC Company expected to produce 20,000 units of

Full accounting for one month operation

Sally Brown has decided to go to business for herself by running the company Tapes 4 You. Tape 4 You will rent tapes, DVDs, VCRs, and DVD players. In addition, it will also rent video games and the necessary machinery. Finally, a small amount of inventory will be kept on hand of VCRs and DVD players for sale. The following trans

Rate of return on gross book value

The asset section of the January 1, 20X9, balance sheet of Junction Company has only one machine (and nothing else) which was acquired on January 1, 20X5. The machine's original cost was $500,000, and the estimated life was determined to be 10 years. The estimated residual value was zero, and the straight-line method of deprecia

Variable and Fixed Costs

Express Company has the capacity to produce 100,000 juicers per month. They are currently producing and selling 80,000 juicers. The cost of producing 80,000 juicers is $1,200,000 (800,000 variable and $400,000 fixed). The juicers are normally sold directly to retailers at @ $25 each. Express has an offer from Apple Company (fo

Accounting Information System

1. If AIS (Accounting Information Systems) are so vital to business success, why do so many businesses have problems in this area? 2. What opportunities has the advent of business use of the Internet created for AIS development? 3. Do external individuals who interact with the organization have a right to know what infor

Finance-Related Multiple Choice Problems

Please help with the following problems. A) Why do annual reports include more than 1 year of the balance sheet and statements of income and cash flows? Is it... 1) SEC requires only 1 year's data or... 2) Financial statements for only 1 year would have no reference point for indicating changes in a company's fin

Accounting Operation Costs

Problem 1 Muscle Beach Current Operating Data MegeMuscle PowerGym ProForce Selling price per unit $140 $200 $290 Contribution margin per unit 42 77 58 Monthly sales volume-units 3,000 2,000 1,000 Fixed expenses per month Total of $320,000 a. Calculate the contribution margin ratio of each product b. Calculate t

Accounting Depreciation and fixed assets

Monumental Products Corp. had recently purchased a new machinery at a cost of $450,000. Management estimates that the equipment will have a useful life of 15 years and no salvage value at the end of the period. If the straight-line depreciation method is used for financial reporting, calculate the following: A) Annual dep

Tax Saving Strategy

1. Allan and Sarah are not married. Sarah has a low income but Allan has a high income. a. How might a loan from Sarah to Allan be advantageous to them? b. How might it be advantageous for Allan to rent something from Sarah? 2. Allan and Sarah are married. Allan passes away and Sarah is the sole beneficiary of Allan'

Describe the operating cycle and the cash cycle.

Describe the operating cycle and the cash cycle. What are the differences between them? When you analyze a company's financial health, what kind of ratios would you review? (please list top 3 financial ratios you would consider the most important and which would provide you with a clear idea on the financial status of the co

Warranty Expenses

Cannon Bly is a sales manager for an automobile dealership. He earns a bonus each year based on revenue for the number of autos sold in the year less related warranty expenses. Actual warranty expenses have varied over the prior 10 years from a low of 3% of an automobile's selling price to a high of 10%. In the past, Bly has ten

Financial Comparison Between Google and Yahoo

In terms of Google and Yahooo: Estimate the five operating expenses for each of the past three fiscal years, and evaluate what operating leverage, if any, was applied each year. Explain the functions of intermediaries and financial regulatory bodies with the company.

Accounting Equation

Compute the missing amounts for companies A, B, and C. A B C Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$45,000 $ 4,500 $18,000 Accounts receivable . . . . . . . . . . . . . . . . . . . .10,000 10,000 14,000 Land and buildings . . . . . . . . . . . . . . . . . .

identified data for a typical month

An ABC team at Drug's 'R' US, a pharmaceutical company, identified these data for a typical month (Please see attachment) Please disregard requirements in attachment instead please use the following requirements thank you: You will be calculating unit costs for products A and B using both traditional and activity-based cos

Tax Problem

HOPE Scholarship Credit and Lifetime Learning Credit. John and Mary, a married couple who file a joint return, have two dependent children in college, Jeff and Brooke. Jeff attends Pepper College, a private, liberal arts college, and Brooke attends State U. During the calendar year 2006, Jeff was a sophomore during the Spring

Profit amount after a year of investing

Using Microsoft Excel, calculate the total amount you will receive in a year if you invest $1,000 now (assuming the interest rate is 8% per annum) at: a. yearly compounding b. semiannually compounding c. quarterly compounding d. daily compounding

Calculate the score for Gary Mall and Belt Line

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites. Factor Weight Gary Mall Belt Line Affluence of local population .20

Net income and breakeven point calculation

What should a company expect their net income to be if their units sold increases by 10,000 units given the following information? What would their breakeven sales point be? Sold 60,000 units this year. Sales $120,000 Direct Labor 6,000 Indirect Labor

Financial Accounting

True/False 1. Accounts receivable are the result of cash and credit sales. 2. Under the direct write-off method, no attempt is made to match bad debts expense to sales revenues in the same accounting period. 3. Allowance for Doubtful Accounts is debited under the direct write-off meth

Bonds Payable

23. Entries for bonds payable. (20 points) Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Titus Co.: March 1 Issued $800,000 face value Titus Co. second mortgage, 8% bonds for $872,160, including accrued interest. Interest is payable semiannually on

Accounting Information Systems

How can data modeling tools such as an E-R diagram help identify inconsistencies early on in the data modeling process? How can the data modeling process encourage accountants and other users to get more involved in database design? What techniques might an auditor employ to evaluate the reliability and integrity of an accoun