Prepare a complete statement of cash flows; report its operating activities using the direct method. Forten Company, a merchandiser, recently completed its calendar-year 2008 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchase
1. Zeta Company sells men's sports coat. The average sales price is $475 the average cost per code is $225. Fixed costs are $4,220,000. If Zeta sells 25,000 coats, the contribution margin will be: a. $7,655,000 b. $5,625,000 c. $2,030,000 d. $6,250,000 5. The following information was drawn from th
A. STONES Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Miles Driven Total Cost January 8,000 $ 15,850 March 8,500 $ 16,800 February 7,500 14,900 April 8,200
The controller for Canandaigua Vineyards, Inc. has predicted the following costs at various levels of wine output. (See attached) The company's marketing manager has predicted the following prices for the firm's fine wines at various levels of sales. (See attached) 1. Calculate the unit costs of wine production and s
1.) Which of the following costs typically include both fixed and variable components? (a) Direct materials (b) Direct labor (c) Factory overhead (d) None of the above 2.) Mitchell Company has total current assets of $45,000 including inventory of $10,000, and current liabilities of $21,000. The company's working capita
The current credit terms: net 1/30 net 50. Half of our current customers take the cash discount and pay on the 30th day, whereas the other half pass the discount and pay on the 50th day. The tax rate and pre-tax required rate of return of our company are 30% and 12%, respectively. Now my proposed new credit policy: To tigh
For each of the following unrelated transactions, list the accounts that will be debited and credited. (a) Borrowed cash from the bank. (b) Provided services on account. (c) Paid cash for office supplies. (d) Collected cash due on accounts receivable. (e) Paid cash dividends to stockholders.
King Company has two departments, assembly and finishing. Consider the following data for the Assembly Department: Units Percent Direct Direct Complete Material Labor Overhead Total Beginn
JPB Group is a consulting firm specializing in mergers and acquisitions. In addition to the three partners, the firm employs nine consultants who work directly with clients. The average budgeted compensation for the twelve professionals is $130,000. Each consultant is budgeted at 1,600 billable hours per year. All professional l
Please help answer the following problems. Provide detailed solutions. On Jan 1 2005, J Company purchased equipment for 95,000. J co. paid 2,000 to have the machine installed. The equipment is expected to have a 5 year useful life and a salvage of 7,000. A.) Compute the depreciation expense for 2005 and 2006 using straigh
1.) Poxahatche Products provided the following selected information about its consumer products devision for 2007: Desired ROI=10% Net Income=$150,000 Residual Income=$50,000 Based on this information, the division's investment amount was: A.) $700,000 B.) $1,000,000 C.) $4,000,000 D.) $20,000,000 2.) Picard Com
Can you talk about or discuss factors that may have motivated defendants to commit fraud within Adelphia Communcations?
Calculate the break-even for a Widget company given the following information: Sales Price Variable Cost per unit Fixed Costs Widgets $800 $550 $77,000 Problem 2 Based upon the information needed in problem 1, how many widgets must be produced to earn a profit of $50,000?
Elegance Company makes fine jewelry that it sells to department stores throughout the United States. Elegance is trying to decide which of two bracelets to manufacture. Elegance has a labor contract that prohibits the company from laying off workers freely. Cost data pertaining to the two choices follow.
A manufacturer makes a single product. When comparing this year's income statement with last year's, why is net income different for the same level of sales: Cost have not changed at all, but income has. What was done right this year? The statements, both prepared using absorption costing, look like this:
I need to identify at least on recent FASB position/proposal/pronouncement which would be of particular interest to the Cola industry, specifically Pepsi or Coca-Cola. I don't need a great deal of information, only to get me started so I may further research. Thank you.
In the Scott Fane opinion, Justice O'Connor alluded to "incremental commercialization" within professions. Identify examples of incremental commercialization within the public accounting profession in recent years. How, if at all, has an increasing emphasis on the commercial aspects of public accounting affected the profession?
Meg and Walt are going to be married in three months. Meg has owned and lived in her home for 42 years, and Walt has owned and occupied his home for 35 years. They both have listed their homes for sale. They anticipate the sales results will be as follows: Meg's *Selling price $450K *Selling expenses $40K *Adjusted basis $
Biro Manufacturing started 2005 with the following account balances. Cash 800 Raw Materials Inventory 960 Work in Process Inventory 640 Finished Goods Inventory (320 inits @ $5)
Pike Skatedboard Co. makes specialized skatedboards. Pike seeks to be the leader in designs for skateboards and produces designs in lot sizes of 1,000 units Pike uses job order costing in conjunction with normal costing to measure and assign unit cost. The following information is provided regarding the company's two product
Identify normal balances for listed accounts in the first group. Indicate whether debit or credit is required for the second group. Indicate agreement or disagreement in third group of accounts.
Indicate whether debit or credit decreases the normal balance of each of the following accounts: office supplies-repair services revenue-interest payable-accounts receivable-salaries expenses-owner capital-prepaid insurance-buildings-interest revenue-owner withdrawals-unearned revenue-accounts payable. Identify whether a de
Importance of Manufacturing Overhead Allocation The percentages of product costs comprised by direct materials, direct labor, and manufacturing overhead for three companies are as follows: Company A Company B Company C Direct materials . . . . . . . . . . . . . .
1.) The accounting records disclosed the following cost information for 2007: Direct materials $30,000 Direct labor $40,000 Fixed Manufacturing Overhead $50,000 Variable Manufacturing Overhead $10,000 Assume the company produced 10,000 units of in
In their review of the public accounting profession, Lou Harris and Associates warn that an audit report too often is viewed as a "certificate of health" for a company: The report states: The most serious consequences stemming from such a misunderstanding are that the independent auditor can quickly be portrayed as the force
Sarah owns undeveloped land (basis of $350K) held as an investment. On October 7, 2006, she exchanges the land with her 27-year-old daughter, Ellen for other undeveloped land also to be held as an investment. The appraised value of Ellen's land is $500K. a. On February 15, 2007, Sarah sells the land to Jeff, a real estate
Rocky Industries; Wisconsin Rentals; Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting. Which of the following general entries will RH Consu
1. Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include a A. Debit to Telephone expense for $300 B. Credit to Accounts Payable for $300. C. Debit to Cash for $300 D. Credit to Telephone Expense for $300 E. Debit
Practically every line of Kevin and Janet's form 1040 can be used for tax planning. They had total income of $98,771 and paid federal income tax of $6,838 or 7%. Additionally, Kevin had income from his business of $48,040 and paid self-employment tax of $7,001 or 15%. Explain how Kevin and Janet took advantage of existing IR
Assuming that Neasha elects to use the carryback provision what after tax net income (loss) is reported in 2007?
I Part: 2) Revenue Recognize: The revenue recognition principle provides that revenue is recognized when: 1- It is realized, 2- It is earned. Explain when revenues are a realized , b) realizable, and c) earned. II Part: Neasha Corporation reported the following results for its first three years of operation:
Dividends and Taxes: Investors require an after-tax rate of return of 10 percent on their stock investments. Assume that the tax rate on dividends is 30 percent while capital gains escape taxation. A firm will pay a $2 per share dividend 1 year from now, after which it is expected to sell at a price of $20. a. Find the c
Cabigas Company manufactures two products, Product C and Product D. The company estimated it would incur $167,140 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor hours. Data concerning the current period's operations appear below: