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Advanced Accounting - Cale Corp. and Kaltop Co

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

Estimating A Cost Function Using The High-Low Method

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

Questions on: variable costing, absorption costing

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

Tax benefits of net operating losses

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?

Taxable and financial income

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?

The Equity Method of Accounting for Investments

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

Goodwill and Other Intangible Assets

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

Largest Variable Expenses for Microsoft and Novell, Inc

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.

Coca-Cola Corporate Overview

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?

Revenue and Monetary Assets

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

What is EPS?

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

Expense budgets - R&D and G&A

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

Analyzing Stock Based on EPS

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

Healthcare Economics MCQs

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 & Beyonce Inc.

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

T/F - MC Accounting Questions

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.

EOQ - Economic (Optimum) Ordering Quantity

Green Thumb Garden Centers sell 240,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,200 bags. Each bag costs Green Thumb $4, inventory carrying costs are 20 percent, and the cost of placing an order with the firm's supplier is $25. A) What is the economic ordering quantity?


BJ Motors has annual average purchases of $200,000 and an ending accounts payable balance of $36,000. How long, on average, does the company take to pay for its purchases?


Your client is the 100% shareholder of company X. Company Y wishes to acquire all of company X. Your client has asked you for your advice whether he should merge his company with Y and accept some stock in the new entity and cash, or accept a cash price for his company. What is your advice and why?

Cost Accounting

Please answer all twenty-six questions, providing detailed explanations for each answer. 1. Cross Functional Decision Making: A) Brings together individuals from diverse functions and backgrounds in order to generate innovative solutions to problems. B) Brings together individuals from different industries to benchma

Calculate: Refunding of Bonds

Scenario: The Bowman Corporation has $20 million bond obligation outstanding, which it is considering refunding. Though the bonds were initially issued at 12 percent, the interest rates on similar issues have declined to 10.5 percent. The bonds were originally issued for 20 years and have 15 years remaining. The new issue would

Unemployment calculation

Suppose the following data describes a nation's population: Year 1 Year 2 Population 150 million 225 million Labor Force 120 million 180 million Unemployment rate 7% 5% a) How many are unemployed each year? Year 1______ Year 2 ______ b) How many are employed each year? Year 1__

Price and efficiency variances

Peterson Foods manufactures pumpkin scones. For January 2007, it budgeted to purchase and use 15,000 pounds of pumpkin at $0.89 a pound. It budgets for 60,000 pumpkin scones. Actual purchases and usage for January 2007 were 16,000 pounds at $0.82 a pound. Actual output was 60,800 pumpkin scones. 1. Compute the flexibl

Minimize current year tax liability

Becky graduated from a Midwestern college in 2000 and began work as a marketing manager trainee for a large consumer products company. Becky had never prepared her own tax return before, but she was determined to do it for the first time. Becky got all pertinent information together, and it appears as follows: Data on two W

Determining one year return for xyz company's stock

Supposed xyz company's stock is selling for $80.00 today. I am expecting a dividend of $3.00 next year and I plan to sell the stock for $95.00 one year from now. Calculate the one-year return on PDQ stock.

Accounting Questions

2) INSTRUCTIONS: Solve the following problems and record the answers in the Answers column. 0. If total direct labor costs are $100,000 for 25,000 units of production, the per-unit direct labor cost is 1-3. Fixed costs for Flag Stamp Co. are $250,000. The selling price per unit is $20.00, and variable costs are $15.00.

Accounting Fill in the Blanks

0. The manner in which a cost changes as a related activity changes is known as 1. In terms of cost behavior, direct materials and labor costs are generally classified as 2. The range of sales or production activity over which the behavior of the cost is of interest to management is called the 3. The activity that is