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# Accounting

### What is the difference between buying and making?

Ellen currently makes part y-7 which is used to make a lawnmower they manufacture and sell. Following are the costs to make the product. They use 10,000 parts a year. Direct Material \$12 Direct Labor 18 Variable Overhead 6 Fixed Overhead is \$80,000 Of the \$80,000, \$50,000 is avoidable

### 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

### FASB Asset/liability Approach to record taxes

Please provide your professional opinion on the following: Do you think that the asset/liability approach used by the FASB to record taxes is valid? Why or why not.

### 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

### Job Order costing for Snappy Company; Activity based costing for Anfuso Corp

See the attached file. Snappy Company, estimated the following for 2009: Manufacturing Overhead \$100,000 Direct Labor hours 40,000 At year end (12/31/2009), actual DLH = 45,000 And actual overhead costs were \$110,250. A. Compute the overhead application rate for 2009.

### 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

### Intercompany transactions: why use them, what are types? Upstream and downstream.

Why would a company engage in intercompany transactions? What are some types of intercompany transactions? What is the difference between upstream and downstream intercompany transactions? Why is it important to know the difference?

### How does an encumbrance affect expenses and expenditures?

How does an encumbrance affect expenses and expenditures?

### 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

### Calculate the stock price for a no growth firm, all earnings paid out in dividends

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)

### 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

### What is fund equity, and how does it compare to net assets?

What is fund equity, and how does it compare to net assets?

### 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.

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

### Thompson Construction: Using the Eichleay Formula, propose an equitable adjustment.

THOMPSON CONSTRUCTION Thompson Construction has a contract to remodel two Government warehouses for use as modern office space. The \$900,000 contract was on March 1, with completion scheduled for 240 days after contract award. For 150 days, work proceeded as expected. Thompson completed work on Warehouse 1 and began work on Wa