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    Les Fleurs: Compute net sales revenue, cost of goods sold and gross profit

    Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases..................... E250,000 Freight In.................. E8,000 Sales discounts............. 4,000 Purchase returns........ 7,000 Inventory Sales.......

    Total after tax net income

    39 Assume the following for your corporation: sales (aka revenue) $250 Cost of goods sold 160 depreciation 35 Interest Expense 20 tax rate = 34% What is the corporation's total after tax net income? a. 23.10 b

    Firm ABC: Computer earning multiplier in four scenarios

    The dividend payout ratio for firm ABC is 60%, k is 13% and the expected growth of dividends is 7%. a) What is the current earnings multiplier? b) You expect the payout ratio to decline to 50%, all else equal. What is the new earnings multiplier? c) With the payout ratio at 60%, the rate of inflation increases 3% while the

    Which is true for purchase vs. pooling method for business combinations?

    A. When comparing the purchase method with the pooling method, which statement is true? -Under the purchase method the acquired company's current year income is included in the acquiring company's income statement, even if the combining takes place on the last day of the fiscal period -under both methods goodwill may be reco

    Operating Proft Margin and EPS.


    Taxation Income Deductibles

    What do you think about a person in a situation where they have had income some years and losses in others? A person has paid taxes in some years on income. Should the losses be deductible if the subjective criteria are not in the taxpayer's favor?

    Company X - Net Income

    Company X is a software company that currently recognizes revenue when the agreement/contract is signed. Company X is considering a more conservative approach by recognizing revenue at the deliver of the product to customer. Therefore, it's considering changing its revenue recognition policy. Days in receivable under curre

    Diluted earnings per share

    During 2009, Falwell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Falwell did not declare or pay any dividends during 2009. Falwell's net income for the year ended December 31, 2009, was $2.5 million. The income t

    Blithe Company purchased 60% of Spirit Company

    Blithe Company purchased 60 percent of Spirit Company's stock for $100,000 on January 1, 2006 when Spirit reported $120,000 of common stock outstanding and retained earnings of $25,000. On December 31, 2008, Blithe reported its investment in Spirit at $126,100 using equity-method accounting for its investment. Blithe received di

    Comprehensive problem: single cycle

    The following transactions pertain to Jones Corporation for 2009. Jan 1. Began operations when the business acquired $50,000 cash from the issue of common stock. Mar. 1 Paid rent for office space for two years, $18,000 cash. Apr. 1 Borrowed $40,000 cash from First National Bank. The note issued had an 8 percent annual

    How S Corporations Treat Hobby Losses

    How does one include a hobby into a S Corporation? And if one shareholder were to include a hobby, I would also assume that all shareholders would have to follow suit for consistency. Intuitively it makes sense that adding a hobby would create a red-flag, but under what context does the red-flag arise?

    Diehl Company: Make or Buy a Component

    Please see attached file. For many years, Diehl Company has produced a small electrical part that it uses in the production of its standard line of diesel tractors. The company's unit product cost for the part, based on a production level of 60,000 parts per year, is as follows: Per Part Total Direct materials $ 4.00

    Solex Company: Sell or Process Further

    Please see attached file. Solex Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $100,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. These sales

    Rice Co - 2 MC

    O7). Use the following information for questions I and II below. Rice Co. purchased machinery that cost $810,000 on January 4, 2006. The entire cost was recorded as an expense. The machinery has a nine-year life and a $54,000 residual value. The error was discovered on December 20, 2008. Ignore income tax considerations. I

    Section 183 Hobby losses: more than one business activity

    I'm curious as to what happens if an individual has two or more hobby-activities that an individual treats as a business. If two or more activities were to incur losses for a year or more, and for the sake of argument-- simultaneously (as even hobby activities may be affected by recessionary downturns); do such losses from two o

    Tax issue identification questions: Explain the issue involved in each scenario

    TAX "ISSUE" IDENTIFICATION QUESTIONS (Try to answer two questions from each chapter). No solutions, please. Just answer without having to actually solve a problem. C9-19 Bob and Kate form the BK Partnership, a general partnership, as equal partners. Bob contributes an office building with a $130,000 FMV and a $95,000 adjust

    Null and Alternate Hypotheses Analysis

    Suppose that wish to test Ho: µ=10 versus Ha: µ>10 at the ∝ = 0.05 significance level. Furthermore, suppose that we observe values of the sample mean and sample standard deviation when n = 40 that do not lead to the rejection of Ho. Is it true that we might reject Ho if we observe the same values of the sample mean and

    Emotional Intelligence and QEMS

    As our world constantly experiences change, our communication-related theories continue to evolve to meet our new realities. Visit the Emotional Intelligence and QEMS Web sites to explore the current theories of emotional intelligence and quantum energy management. 1. Discuss the validity and possible applications of these tw

    Calculate the Partnership Capital Gain Allocated to Gregory

    At December 31, 2005, Lincoln and Ebert were equal partners in a partnership with net assets having a tax basis and fair market value of $150,000. On January 1, 2006, Gregory contributed securities with a fair market value of $75,000 (purchased in 2003 at a cost of $51,000) to become an equal partner in the new firm of Lincoln,

    Amy's Adjusted Basis in Giant Partnership; recognition of gain

    Amy acquired a 50% interest in the Giant Partnership by contributing property with an adjusted basis of $100,000. Amy would recognize a gain if I. The fair market value of the contributed property exceeds its adjusted basis. II. The property is encumbered by a mortgage with a balance of $50,000. Choices - I only, II only,

    Tax benefits of NOLs: carryforward or carryback

    1. How are the tax benefits of net operating losses (NOL) disclosed on financial statements? Which is more beneficial to an organization, an NOL carryforward or an NOL carryback? Why? When would a company decide to forego a carryback? 2. Read an article about taxable and finanical income, or deferred tax assets and liabili

    ACC300: using the accounting formula in analyzing transactions

    Part I Fill in the blanks: Question 1 to 8: In the space provided, classify each as it would be reported on a balance sheet. Use the following code: A -----Asset L -----Liability SE ------ stockholders' equity _____1. Accounts Payable _____2. Accounts Receivable _____3. Buildings _____4. Cash _

    Describe accounting problems with recommendations for NASA

    See attached article for reference. According to NASA's former auditor, PriceWaterhouseCoopers (PWC), NASA's finances are a mess, with major errors in its last financial statements and insufficient documentation. NASA's chief of internal financial management has maintained that the problems resulted from a difficult transitio

    Statistics of Attitudes of Gun Control

    If one study claimed 7 out of 8 people (88%) surveyed stated they were against gun control and another study claimed 800 out of 1600 people (50%) were against gun control, which result would you feel is more accurate in the sense of describing the attitudes of the general population? Explain.