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Accounting

Effect of large transaction; Compute Global's EBIT, income, P/E

1. Suppose your firm receives a $5 million order on the last day of the year. The customer picks up the entire order the same day and pays $1 million in upfront in cash; you also issue a bill for the customer to pay the remaining balance of $4 million within 30 days. Suppose your firms tax rate is 0 (ignore taxes). Determine the

Taxation: How many dependency exemptions may Tony claim in 200x

Tony supports the following individuals during 200x: Miranda, his former mother-in-law who lives in her own home and has no gross income; his cousin, Jeff, age 23, who is a full-time student, earns $7,000 during the year, and lives with Tony all year long; and Matt, age 22, who is Tony's brother, is a full-time student who live

Deep Discount Bonds - Husky Enterprises

Husky Enterprises recently sold an issue of 10-year maturity bonds. The bonds were sold at a deep discount price of $615 each. After flotation costs, Husky received $604.50 each. The bonds have a $1,000 maturity value and pay $50 interest at the end of each year. Compute the after-tax cost of debt for these bonds if Huskys margi

Compute Value of Equity, Net Income, Retained Earnings

See the attached file. 2-1 Total Assets Use the following information, compute total assets. Equipment . . . . . . . . . . . . . . . $10,000 Accounts payable . . . . . . . . ....... 900 Capital stock . . . . . . . . . . . . .... 1,500 Cash . . . . . . . . . . . . . . . . . . ....... 800 Loan payable . . . . .

Analyze Jill's investment in Aromatics bonds

Jill invested 25,000 in the bonds of industrial Aromatics Inc. She held them for 13 months, at the end of which she sold them for 26, 746. During the period of ownership she received 2,000 in interest. Calculate the pretax and after tax HPR on Jill's investment. Assume that she is in the 31% ordinary tax bracket (federal and sta

Describe products involved in all 3 sectors of the economy

1- Describe a scenario for the production and consumption of a product that involves all three sectors of an economy. Explain what each sector contributes to the transactions and what each sector receives. Which sector benefits the most from the transactions involved and why? 2- Give an example of a real world market t

Accounting: Plant assets, Depreciation, Prepaid insurance, interest on a note

1. A main accounting issue for plant assets is: A) Computing the cost of the plant assets. B) Matching the costs of plant assets against revenues for the periods they benefit. C) Accounting for repairs and improvements to plant assets. D) The disposal of plant assets. E) All of the above. 2. Nelson Company purcha

Questions Involving Sales and Production

Sell or process further (adapted from CMA exam) The department of Biggs Company is considering a proposal to install a third production department within its exiting factory building. With the company's present production setup, 200.000 pounds per year of direct materials pass through Department 1 to Produce 100,000 pounds each

Waldo and Company: Transfer pricing in a service business

Waldo and Company, LLP, is a partnership that provides public accounting services. Waldo has three offices located in New Orleans, Baton Rouge, and Lafayette. Each of the offices employs approximately 30 professional accountants who are hired by and work solely for the office to which they are assigned. The offices are run indep

Break even analysis : Academic response

If a firm has a break even point of 20,000 units and the contribution margin on the firm's single product is $3.00 per unit and fixed costs are $60,000, what will be the firm's net income be at sales of 30,000 units.

Determining Price per Share and Profit: Example Problem

a. You overheard a dealer for Teldar Paper's stock saying that the bid and ask for Teldar were 23:19 AND 23:47, respectively. if you were looking to sell 100 shares of Teldar to the dealer, at what price per share could you sell them? b. If your friend Jimmy wants to buy 100 shares of Teldar from the dealer, at what price pe

Michigan Mining and Manufacturing has a debt obligation

Michigan Mining and Manufacturing has a debt obligation of $100 million and assets with a value of $90 million. This debt must be paid off very shortly. When this happens, the value of the debt will be $90 million and the value of equity will be $0. Prior to paying off the debt, MMM has an opportunity to make a high-risk investm

Accounting for intangible assets

Mia-Tora Company purchased a fast-food resturant for $1,400,000. the fair market values of the assets purchased were as follows. No liabilities were assumed. Equipment $320,000 Land $200,000 Building $ 650,000 Franchise (5-year life) $100,000 Required: Calculate the amount of goodwill purchased.

Change in Accounting Principles and Financial Statements

BE13- 1 On June 30 Rojas Corporation discontinued its operations in Mexico. On September 1 Rojas disposed of the Mexico facility at a pretax loss of $ 480,000. The applicable tax rate is 25%. Show the discontinued operations section of Rojas's income statement. BE13- 3 On January 1, 2007, Cannon Inc. changed from the LIFO met

Price per Share of a No Growth Firm

Company X is a no growth firm. It is expected to provide a constant earnings per share of $30. If all earnings are paid out as dividends and the required rate of return on equity is 15%, calculate the current price per share for the stock. a) $45 b) $100 c) $150 d) $200 e) Not enough information to answer the question f)

PVGO: Compute the capitalized value of EPS in a no-growth policy

Presume the per share PVGO of a firm's common stock is computed as $44, and the firm's current market price is $56. This implies that the capitalized value of the earnings per share the firm is expected to generate under a no-growth policy is: a) $12 b) $44 c) $50 d) $56 e) $100

Journal Entries Necessary for Accounts

See the attached file. 1. On July 23, Plitt Company factored $300,000 in accounts receivable for cash of $280,000. The factor withheld 7 percent of the cash proceeds to allow for possible customer returns. An allowance for doubtful accounts of $13,000 had previously been established by Plitt in relation to these accounts.

Business Entities in NY

Describe a business entity regulations in the NY state. talk about: a. Identify the business formation code(s) in NY state. b. Identify the address of your state's corporation commission. c. Describe the process for obtaining an "annual filing report" that has already been filed for a corporation currently registered

Retained earnings reports

The following information is based on 2006 account balances: Total reported income since incorporation $1,500,000 Total cash dividends paid ($800,000) Cumulative effect of changes in accounting principle ($120,000) Total stock dividends distributed ($200,000) Correction of an error, recorded Jan 1 2006 $66,000 What sho

Calculate variable overhead efficiency and spending variance: apply overhead

Company B's production budget for the year ended December 31, 2005 was based on 10,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $90,000 for the year, and the fixed overhead rate was estimated to be $6.00 per unit. Both fixed and variable overhead are assigned to the pro

Explain why accounting has a broader role including managerial accounting tasks

Congratulations! You have been hired by Claire's Antiques as its new accountant. Since Claire's Antiques is a small company, you will responsible for all of its accounting functions related to financial and managerial accounting. You are explaining your new role to your friend. After explaining what you do, she expressed sur