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Explain financial leverage, tax implications of debt

I need help with the following 3 questions. 1. What are the tax implications of debt financing? Explain the term financial leverage as it relates to debt. 2. What is the difference between Preferred Stock and Common Stock? Why would a company prefer the use of Preferred Stock over Common for long term financing? 3. W

Highland Shortbread: Compute the predetermined overhead rate of the year

Highland Shortbread produces a single product and uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard machine hours. According to the company's flexible budget, the following overhead costs should be incurred at an activity level of 18,000 machine hours (the

Warranties and premiums amounts determined

Ray Charles Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Charles uses two sales promotion techniques- warranties and premiums- to attract customers. Musical instruments and sound equipment are sold with one-year warranty for replacement of parts

Gross Profit

1. On March 1, 2007, Winter Company, entered into a contract to build an apartment building. It is estimated that the building will cost $2,000,000 and will take 3 years to complete. The contract price was $3,000,000. The following information pertains to the construction period. 2004 2005 2006 Costs incurred to date $600,000

Computing Cash Flow

Assume a firm has earnings before depreciation and taxes of $200,000 and no depreciation. It is in a 40 percent tax bracket. a. Compute its cash flow. b. Assume it has $200,000 in depreciation. Recompute its cash flow. c. How large a cash flow benefit did the depreciation provide? d. Would the preside

Question about Cost of Capital

Higgins Office Corp. plans to maintain its optimal capital structure of 40 percent debt, 10 percent preferred stock, and 50 percent common equity indefinitely. The required return on each component source of capital is as follows: debt--8 percent; preferred stock--12 percent; common equity--16 percent. Assuming a 40 percent marg

Accounting

1. Geoff's Golf Clubs is considering purchasing a small firm in the same line of business. The purchase would be financed by the sale of common stock or a bond issue. The financial manager needs to evaluate how the two alternative financing plans will affect the earnings potential of the firm. Total financing required is $4.5 mi

Tax and GAAP Differences

Answer 12 of these questions. Where applicable, show all work/computations, and use examples for partial credit. Format your submission in accordance to APA writing style guidelines. 1. What are some of the major differences between GAAP and income tax accounting? 2. What are all the possible filing statuses? What charact

Questions - Cost Accounting

Questions 2 and 3 I need help with answering the following cost accounting questions. Could you please provide a words count of 200 for each questions. 2. Contrast the primary focus of job order cost accounting and of process cost accounting. 3. What are the similarities between a job order and a process cost system?

ACG230-0903B-20 Introduction to Accounting

Income Statement, Balance Sheet, and paragraph Details: Group Project Doug Maltbee formed a lawn service business as a summer job. To start the business on May 1, he deposited $1,000 in a new bank account in the name of the proprietorship. The $1,000 consisted of a $600 loan from his father and $400 of his own money. Do

Preparing a bank reconciliation

Tom Landry owns a construction business, Landry Supply Co. The following cash information is available for the month of October 2008. As of October 31, the bank statement shows a balance of $13,800. The October 31 unadjusted balance in the Cash account of Landry Supply Co. is $12,700. A review of the bank statement revealed the

Accounting for Pollution Expenditure

Phil Mickelson Company operates several plants at which limestone is processed into quicklime and hydrated lime. The eagle ridge plant, where most of the equipment was installed many years ago, continually deposits a dusty white substance over the surrounding countryside. Citing the unsanitary condition of the neighboring commun

Accounting for Impairments of Intangible Assets

Montana matt's Golf Inc. was formed on July 1st 2006, when Matt Magilke purchased the old master golf company. Old master provides video golf instruction at Kioks in shopping malls. Magilke plans to integrate the instruction business into his golf equipment and access only stores. Magilke paid, $750,000, cash for an old mas

VPN Network Security Issues for ABC Company

Scenario: ABC Company is a small but growing manufacturing company with revenues of approximately $25 million. Until now, the company has had a single headquarters and production facility in a Midwestern city, but it is building a separate sales office on the east coast which will open in a few months. You are the Manager

Charitable Contribution Deduction Computation

Joe Smith paid $500.00 to attend a fund raiser for a qualified charity 100 miles from home. At the fund raiser he purchased a painting at a silent auction for $1000.00. The fair market value of the painting was $250.00 and the dinner was $50.00. While at the fund raiser he met the governor and contributed $500.00 to the governor

Minimizing AGI

Monica, a single taxpayer, purchased 10,000 shares of 1244 stock several years ago at a cost of $20 per share. In November 2007, she received an offer to sell the stock for $12 per share. She has the option of either selling all of the stock now or selling half of the stock now and half of the stock in January of next year. M

Calculate FV of an amount of investments

V=future value 9.85 when: pv=present value is l i=interest rate per period or 10% n=number of periods (n is an exponent) is 24 fv = pv*((1+i)^n) fv = 1*((1+0.1)^24 fv = 9.85 How much would your dollar be worth if you had taken .33 out of your investment at the end of the 12th year?

Overhead Variances for Cedar Key Company

Cedar Key Company produces handmade clamming buckets and sells them to distributors along the gulf coast of Florida. See the attached file. The company incurred $9,400 of actual overhead cost ($8,000 variable, $1400 fixed) in May. Budgeted standard overhead costs for May were $4 of variable overhead costs per direct labor

Total Variance, Spending Variance, & Activity Variance

Alto Clinic uses patient-visits as its measure of activity. The clinic has provided the following report: Excel Table included in attached file. Requirements Prepare the clinic's flexible budget performance report for June. Label each variance as favorable (F) or unfavorable (U). Net Operating

ABC Co. Memo: Establishing a formal Computer Security Policy

Scenario: ABC company is a small but growing manufacturing company with revenues of approximately $25 million. Until now, the company has had a single headquarters and production facility in a Midwestern city, but it is building a separate sales office on the east coast which will open in a few months. You are the Manager

Business-Non Profit Accounting Question: Goldwaithe Township

The recognition of revenue from fines does not necessarily reflect the amount ''earned'' by merely issuing tickets. In August 2008, the last month of its fiscal year, Goldwaithe Township issued $88,000 worth of tickets for parking and traffic violations. Of these, the township collected $45,000. It expects to collect an addit

Mal Co: Computaton of Taxable Income with a reconciling schedule

Computation of taxable income. The records for Mal Co. show this data for 2008: Gross profit on installment sales recorded on the books was $360,000. Gross profit from collections of installment receivables was $270,000. Life insurance on officers was $2,900. Machinery was acquired in January for $300,000. Straight-line

MC problem

The accounting profession requires disaggregated information in the following ways: a. products or services. b. geographic areas. c. major customers. d. all of these.

Accounting changes, Error Corrections, and Prior Period Adjustment

Saluki Company's reported net incomes for 2007 and the previous two years presented: year: 2007 2006 2005 $105,000 $95,000 $780,000 2007's net income was properly determined after giving effect to the following accounting changes, error corrections, etc. which took place during the year.

Production and Manufacturing Cost Data

The Polishing Department of Dimetry Manufacturing Company has the following production and manufacturing cost data for October. Materials are entered at the beginning of the process. Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during