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    Simple cash flow

    The ability to manage cash flow is essential for businesses. Many small businesses fail because they are unable to manage the ups and downs of periodic cash flows. Listed below are items that a corporation gave up in order to receive cash. For each item listed in the first column, describe the effect on the elements of each

    Taxation & Research Memorandum

    The Pima and Southern Railroad (PSRR) is a small railroad operating in rural Arizona. It exists by carrying freight to remote areas of the southwest. This year the PSRR needs to replace a 30-mile section of its track. The PSRR has bids from a contractor to replace the track for the following amounts: Cost of new track.....

    Perception of Detection

    Creating a perception of detection can act as a deterrent to fraud. What are some ways companies attempt to create such a perception?

    Reducing overhead costs

    Find an (2013) article based on a search of "reducing overhead costs". Summarize the article.

    Performance Measures, Transfer Pricing

    1. Mario and Lucy opened an ice cream shop in Kissimmee. Their goal is to maximize profit and to make the business appealing to customers. The cream shop was a big success, so they decide to open an ice cream shop in many cities including Orlando. They hire Luis to manage the shop in Orlando. Mario and Lucy are considering di

    Transition of Cost Centers to Profit Centers

    'Wireless Inc., provides a variety of telecommunications services to residential and commercial customers from its massive campus-like headquarters in suburban Orlando. For a number of years the firm's maintenance group has been organized as a cost center, rendering services free of charge to the company's user departments (sal

    Cost Behavior, High-low Method, Pricing Decision

    Since the clinic is brand new, it has no experience to go on. Carlos decided to operate the clinic for two months before determining how much to charge per hour on an ongoing basis. As a temporary measure, the clinic adopted an hourly charge of $25, half the amount charged by Fonseca, Ruiz, and Dunn for professional services. T

    Calculate Efficiency Variances

    Assume that you manage your local marble slab creamery ice cream parlour. In addition to selling ice cream cones, you make large batches of few flavours of milk shakes to sell throughout the day. Your parlour is chosen to test the company's "Made-For-You" system. The system allows patrons to customize their milk shakes by choosi

    Purchase Evaluation of Depreciated Capital

    On June 3 of the current year, Eric, Florence, and George form Wildcat Corporation and transfer the following items: Eric Land $200,000 $50,000 500 Florence Equipment -0- 25,000 250 George Legal services -0- 25,000 250 Eric purchased the land (a capital asset) five years ago for $200,000. Florence purchased the equipment

    Deductions

    There is a significant amount of gray area when interpreting tax regulations. There are several resources available to assist tax preparers in addressing these issues, such as the AICPA's "Statements on Standards for Tax Services." You are asked by a new client to include an unsubstantiated amount as a deduction that will mak

    Relationships of audits

    In comparing services that auditors provide, you will notice a variety of both services and topics they cover. The last slide above in the Audit PowerPoint gives factors that contribute to fraud in companies. Notice that since the Sarbanes-Oxley Act in 2001, fraud from lack of internal controls has decreased dramatically. How

    Equity Securities Entries: Capriati Corp

    AE17-11 Journal entries for equity securities for Capriati Corp in 2012, their first year of business, including unrealized gains or losses in 2012: 2012: Jan 15: Purchased 13,500 shares of Gonzalez Company's stock at $50.25 per share and commission of $2,970. Apr 1: Purchased 7,500 shares of Belmont Co.'s stock at $78.00

    Gregory Inc: Fair Value and Equity Method Compared

    AE17-16 (Fair Value and Equity Method Compared)   Gregory Inc. acquired 20% of the outstanding common stock of Handerson Inc. on December 31, 2012. The purchase price was $1,260,000 for 50,000 shares. Handerson Inc. declared and paid an $0.88 per share cash dividend on June 30 and on December 31, 2013. Handerson reported net

    Gator Co: Equity method of reporting Investment in Subsidiary

    AE17-13 (Equity Method)   Gator Co. invested $1,120,000 in Demo Co. for 25% of its outstanding stock. Demo Co. pays out 40% of net income in dividends each year.   Use the information in the following T-account for the investment in Demo to answer the following questions.   Investment in Demo Co.   1,120,000

    Jones Company: JE for call options, unrealized holding gains

    AE17-22 (Call Option) On January 2, 2012, Jones Company purchases a call option for $420 on Merchant common stock. The call option gives Jones the option to buy 1,000 shares of Merchant at a strike price of $50 per share. The market price of a Merchant share is $50 on January 2, 2012 (the intrinsic value is therefore $0). On

    FASB: Liabilities, Equity, Revenue, Expenses

    The goal of this research assignment is to become more familiar with the FASB Accounting Standards Codification website, as you will be using it in future chapters to find the answers to Research Exercises and Cases that reflect situations often arising in practice. Please answer the following 3 multi-part questions that are di

    Business memo: Winnie Manufacturing Company

    You have recently been hired as accounting staff at Winnie Manufacturing Company. The company is preparing its December 31, 2012 financial statements and there were a number of unusual transactions that occurred during the past year. The accounting department needs to determine the appropriate Income Statement classification f

    Applications to Attend a Special Program

    I have to fill out an application to attend a special program that gives students opportunities to attend workshops and possibly get an internship and I am having trouble with a question. What is the best way to answer this question? Give me an example of tough problem you could not solve. What was tough about it, what did

    CPA Responsibility

    Molly, a CPA in public practice is on the board of directors of a local bank. One of Molly's clients has a $100,000 ninety day loan from the bank. Molly, while preparing the clients tax return finds that the client's revenues from their business is down significantly. Any further deterioration may very well result in the clie

    Constructing a Gantt chart for activities

    1, 3, 5 and 7 1. construct a Gantt chart for the following set of activities and indicate the project completion time: activity activity predecessor time(weeks) 1 5 2 4 3 1

    Crystal, Incorporated: Acquisition Cost, Goodwill, Net Asset Book Value

    Crystal, Incorporated acquired 100 percent of the assets and liabilities of Design, Inc. by issuing its common stock in a business combination. At the time of the combination, the fair values of Design's net assets and Crystal's common stock were $440,000 and $410,000, respectively; the book value of Design's net assets was $320

    Costs associated with risk

    Amanda and Chris McDermott own a small business, Plastic Dollars, that produces and maintains stored value cards for retailers. Most of the cards they sell are gift cards, such as those available in various restaurants and stores. They just started their business two years ago, but this year they hope to sell about four million

    Internal Control Case Scenario

    The Popkin Umbrella Manufacturing Company maintains an inventory of miscellaneous supplies (e.g., pen, pencils, paper, floppy disks, and envelopes) for its clerical workers. The company stores these supplies on shelves at the back of the office facility, easily accessible to all company employees. The company's accountant,

    Variance analysis in the service industry

    17. Detailed variance analysis. The following are planned and actual revenues for Cutting Edge Surgery Center. Because they are one of four surgery centers in the community, the administrator is concerned with his rates in relation to those of his competitors. Planned Actual Surgical volume 1,500 1,700 Gift shop reven

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