What is a Gap Analysis ? How do you determine the gap between the current situation and the end state goals? What is an end state goal?? What are some tentative possibilities? Please give some examples and site any references if using any.
BE8-1. Included in the December 31 trial balance of Billie Joel Company are the following assets. Cash 190,000 Equipment (net) 1,100,000 Work in process 200,000 Receivable (net) 400,000 Prepaid insurance 41,000 Patents 110,000 Raw material 335,000 Finished Goods 150,000 Prepare the current assets section of the Decembe
Columbo Corporation, a calendar-year corporation, began business in 2003. With the initial capital contributions from its sole shareholder, it purchased a building on March 12 for $250,000. It also purchased the following items for use in the business. Item Purchase Date Acquisition Cost Office Furniture April 1
16. Mossfeet Shoe Company is a single product firm. Mossfeet is predicting that a price increase next year will not cause unit sales to decrease. What effect would this price increase have on the following items for next year? Contribution Break-Even Margin Ratio Point A) Increase Decrease B) Decrease Decrease
20. The following information pertains to Nova Company's Cost-Volume-Profit relationships: Breakeven Point in Units Sold 1,000 Variable Expenses per Unit $500 Total Fixed Costs $150,000 How much will be contributed to Net Operating Income by the 1,001st unit sold? A) $650. B) $500. C) $150. D) $ 0.
Why would a CFO be interested in evaluating the employees and employee compensation plans during a due diligence process?"
6. Club Co. appropriately uses the equity method to account for its investment in Chip Corp. As of the end of 2004, Chip's common stock had suffered a significant decline in market value, which is expected to be recovered over the next several months. How should Club account for the decline in value? A) Club should switch to
Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduce budgets, she must first identify where costs can be cut or reduc
1. Complete liquidation - open transaction ABC,Inc. adopts a plan of complete liquidation on July 3, 10*1 and pursuant to the plan makes the following distributions to Anne Able, its sole shareholders, who has a basis of $26,000 for her stock: July 23,20*1 $9,000 Mar 11,20*2
1. Subsidiary liquidation ABC, Inc. owns 95% of the outstanding capital stock of XYZ, Inc. liquidates pursuant to IRC 332 and distributes property, as follows: To ABC, Inc. FMV $95,000, Basis $40,000 To 5% shareholders FMV $ 5,000, Basis $2,000 Will XYZ,
Proops Company has a weighted-average unit contribution margin of $30 for its two products, Drew and Carey. Expected sales for Proops are 40,000 Drews and60,000 Careys. Fixed expenses are $1,800,000. At the expected sales level, Proops' net income will be:
Parallel Consulting Ltd began 1 Jan 2006 with 200,000 shares of $1 par value common stock outstanding. The stockholders' equity is as follows: - Stockholders' equity Capital stock: Ordinary share, $1 par value, 1,000,000 shares authorized, 200,000 shares issued and outstanding $200,000 Additional paid-in ca
Cashen Co. paid $2,400,000 to purchase all of the common stock of Janex Corp. on January 1, 2001. Janex's reported earnings for 2003 totaled $432,000, and it paid $120,000 in dividends during the year. The amortization of allocations related to the investment was $24,000. Cashen's net income, not including the investment, was
Use the following information to answer Questions 21 and 22. On January 1, 2002, Cale Corp. paid $1,020,000 to purchase Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' e
Reisen Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 10 helicopters makes between 1,000 and 2,000 round-trips per year. The records indicate that a helicopter that has made 1,000 round-trips in the year incurs an average operating cost of $300 per roun
Provide appropriate supporting analysis for your answer choice. Abbey Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $129 Units in beginning inventory 0 Units produced 6,300 Units sold 6,100 Units in ending inventory 200
What would be the cost per equivalent unit for conversion costs for September on the Casting Department's production report?
Maenhout Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below: Units Percentage Complete Beginning work in process inventory
How are the tax benefits of net operating losses (NOL) disclosed on financial statements? Which is more beneficial to an organization, a NOL carry-forward or a NOL carry-back? Why? When would a company decide to forego a carry-back?
Why are there differences between taxable and financial income? What are some examples of permanent and temporary differences? Why do these differences exist? How do they affect the financial statements?
In January 2004, Wilkinson, Inc., acquired 20 percent of the outstanding common stock of Bremm, Inc., for $700,000. This investment gave Wilkinson the ability to exercise significant influence over Bremm. Bremm's assets on that date were recorded at $3,900,000 with liabilities of $900,000. Any excess of cost over book value of t
When should a consolidated entity recognize a goodwill impairment loss? a. If both the market value of a reporting unit and its associated implied goodwill fall below their respective carrying values. b. Whenever the market value of the entity declines significantly. c. If the market value of a reporting unit falls b
I need to identify and describe at least three of the largest variable expenses for Microsoft and Novell, Inc's most recent fiscal years. Explain the financial impact each of those expenses has had on the companies' margins and profitability.
What is the history of the management team of Coca Cola? Have there been acquisitions or divestitures for Coca Cola? What is its financial history of Coca Cola?
Huron Corp. operates in an industry that has a high rate of bad debts. On Dec.31, before any year end adjustments, the balance in Huron's Accounts Receivable acct. was $75,000 and the Allowance for Doubtful Acct. had a balance of $37,500. The year-end balance reported in the statement of financial position for the Allowance for
A firm has 1.5 million shares outstanding. EBIT is $5 million and interest paid is $2 million. If the corporate tax rate is 35%, what is earnings per share? a. $0.50 b. $0.95 c. $1.30 d. $1.70 e. $2.50
Imagine you are the financial manager of a corporation responsible for approving next year's annual operating budget. The Marketing, R&D (Research and Development) and G&A (General & Administrative) departments all submitted expense budgets with annual growth of less than 10%. However, the VP of Sales submitted an expense budget
A financial analyst is examining the relationship between stock prices and earnings per share. She chooses sixteen publicly traded companies at random and records for each the company's current stock price and the company's earnings per share reported for the past 12 months. Her data are given below, with x denoting the earnings
1. According to the constant growth dividend discount model, an increase in the required rate of return of stock will (everything else equal): a. Increase the value of the stock. b. Decrease the value of the stock. c. Not have any effect on the value of the stock. d. May either increase or decrease the value of the st
Marion Manufacturing has the following labor costs: Factory?Gross wages $141,000 Factory?Net wages 118,000 Employer Payroll Taxes Payable 23,000 How much should Marion debit to Factory Labor to record these amounts? At May 31, 2006, Beyonce Inc. has $4,500 in beginning raw materials, $6,000 of direct labor. If manufacturi
Indicate whether each of the following would be reported in the section of financial statements identified as (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense. See attached files for full problem description.