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Accounting

Liquidity of Short term assets; related to debt paying ability

It is proposed at a stockholders' meeting that the firm slow its rate of payments on accounts payable in order to make more funds available for operations. It is contended that this procedure will enable the firm to expand inventory, which will in turn enable the firm to generate more sales. Comment on this propsosal.

2 questions

An entry for depreciation has what effect on the financial statements: a) increases assets and decreases liabilities. b) decreases net income and increases assets. c) increases expenses and decreases assets d) decreeases assets and increases liabilities The primary difference between deferred and accrued expense

Accounting and Internal Controls Multiple Choice Problem Set

Internal Control CheckPoint SE1: Ann Mogen owns a gourmet coffee shop. Identify four ways in which good internal controls can help her operate her business. SE2: Schell Company is a men's clothing store. Indicate whether each of the following components of internal control is part of the: a. control environment b. risk

Fraud question/analysis

Pacific Corporation conducted its operations in San Diego, California. It was a dominant player in the surfboard industry. Pacific was started in the late 1900's, and its customers were remarkably loyal. The mom-and-pop shop was steadily growing in an industry continually saturated by thousands of start ups. The loyalty of i

What formulas would I use to solve the following?

A company estimates that to build a new company it would cost $300 million in present value terms or they could purchase an existing company. The book value of the company's they are looking at purchasing has assets of $200 million and its EBIT is $40 million. Similar companies are selling around 10 times current earnings. The

Inflation, Taxes, and Pensions

An asset is acquired at a cost of $10,000 with a five-year life and no anticipated salvage value. Straight-line depreciation is considered appropriate. The asset was acquired on January 2, 2000. Price indexes for the five years are: First, prepare data for each given year. Second, answer the questions below.

After tax-rates of return

Compare the after-tax rates of return for a corporate investor from the following two investments: A twenty-year, corporate bond that sells for par and offers a 9% coupon versus an investment in preferred stock that sells for $40.00 per share and pays a $2.40 dividend. The corporation has a 35% tax rate

Accounting review question

How would you determine how much EBIT could fall before a company would be unable to make interest payments out of operating income?

Question about portfolio variance

The CEO wants an update on risk and feels believes the best way to do this is to discuss the relationship between risk and return and explain it in the context of the company's cost of capital. Here is the information that we have: The company's beta is 1.2. The risk-free rate is 3%. The required market return is 8%.

Classification of Accounts/Accounting concepts

(See attached file for full problem description) --- E1 The lettered items below represent a classification scheme for the concepts of financial accounting. Match each number term with the letter of the category in which it belongs. a. Decision makers (users of accounting information) b. Business activities or entitie

OVERSEAS INHERITANCE

I have an inheritance in Lebanon that is estimated around 200,000 (between cash and property). It was from my uncle who have no children. I know that inheritance of such a small amount is not taxable in the US, but what if the inheritance is from another country, like Lebanon? Does it make a difference? How about the fact that i

Problem Set

Please answer the questions on the sheet provided. I have attached the balance sheet and income statement. --- 1. Refer to the financial statements to answer the following questions. Work all problems out on this page. Show work. How profitable was ABC Company when comparing their Gross Margin to total sales?

Installment Sales Method for Temporary Difference

Gators Corp. sold an investment on an installment basis. The total gain of $60,000 was reported for financial reporting purposes in the period of sale. The company qualifies to use the installment sales method for tax purposes. The installment period is 3 years; one-third of the sale price is collected in the period of sale. The

Jill's Wigs Inc.

Jill's Wigs Inc. had the following balance sheet last year: Cash $800 Accounts Payable $350 Accounts receivable 450 Accrued wages 150 Inventory 950 Notes Payable 2000 Net fix

Keller Best Manufacturing: Total Contribution Margin

Keller Best Manufacturing produces a single product. The following data pertain to the company's last operating month: **TABLE INCLUDED IN ATTACHMENT** Questions: 1. What was the total Contribution Margin for the month using the variable costing approach? 2. What was the Gross Margin for the month under the absorption

Accounting problems

Question 17 Mystic Trolling, Inc., has just purchased a new fishing boat for $5,000 cash. The entry that Mustic Trolling will record includes a a. debit to Boat-Fishing; credit to Cash. b. debit to Cash; credit to Boat-Fishing. c. debit to Boat-fishing; credit to Accounts Payable. d. debit to Ca

MBA

VALUATION OF COMMON STOCK: Spendex Corporation currently (time 0) pays a dividend of $1 per share on its common stock. Dividends are expected to grow at 10 percent per year for the next three years, then at 8 percent per year in the following two years, after which the growth in dividends should remain constant at 5 percent. A

MBA

MUTUALLY EXCLUSIVE INVESTMENTS HAVING UNEQUAL LIVES: Palmer, Inc. is considering two mutually exclusive investments that would expand its capacity to produce golf clubs. The firm requires a 15 percent rate of return on its capital investments and has determined that the projects have the following net cash flow streams. Y

Business / Managerial Accounting - Please select ONLY: a,b,c, or d.

................................................................................................... Business / Managerial Accounting - Please select ONLY: a,b,c, or d. ................................................................................................... * Which benefit of performance measurement is realized

Business / Managerial Accounting - Please select ONLY: a,b,c, or d.

................................................................................................... Business / Managerial Accounting - Please select ONLY: a,b,c, or d. ................................................................................................... * Flexible budgets can be constructed to help managers

Business / Managerial Accounting - Please select ONLY: a,b,c, or d.

................................................................................................... Business / Managerial Accounting - Please select ONLY: a,b,c, or d. ................................................................................................... * Which of the following actions will cause the breakev

Business / Managerial Accounting - Please select ONLY: a,b,c, or d.

................................................................................................... Business / Managerial Accounting - Please select ONLY: a,b,c, or d. ................................................................................................... At an activity level of 20,000 units produced, fixed cost

Business Transactions that Affect the Accounting Equation

For each of the following items, give an example of a business transaction that has the described effect on the accounting equation: 1. Increase an asset and increase a liability. 2. Increase one asset and decrease another asset. 3. Decrease an asset and decrease owner's equity. 4. Decrease an asset and decrease a liab

Financial accounting problem

See the attachment. Intercompany Transfers 28. Asphalt acquired 70 percent of Broadway on June 11, 1993. Based on the purchase price, an intangible of $300,000 was recognized and is being amortized at the rate of $10,000 per year. The 2004 financial statements are as follows: Asphalt Broadway Sales . . . . .

Income Tax Accounting Scenarios

23. On July 1, 2004, Marco purchased an option to buy 1,000 shares of Surfing, Inc. at $40 per share. He purchased the option for $3,000. It was to remain in effect for five months. The market experienced a decline during the latter part of the year, so Marco decided to let the option lapse as of December 1, 2004. On his 2

Income Tax Accounting

1. Francois purchases land for $100,000. He incurs legal fees of $1,000 associated with the purchase. He subsequently incurs additional legal fees of $6,500 in having the land rezoned from agricultural to residential. He subdivides the land and installs streets and sewers at a cost of $200,000. What is Francois's basis for t

Business: Managerial Accounting III - [one day]

H & R Manufacturing Corporation provided the following cost data for its most recent fiscal year end. The company manufactured 100,000 units of its product during the past fiscal year. Beginning work-in-process inventory $70,000 Ending work-in-process inventory 90,000 Beginning finished goods inventory 124,000 Endin

Merchandising Operations (Accounting)

See attached file for full problem description. E1: The decisions that follow were made by the management of Shanahan Shoe Company. Indicate whether each decision pertains primarily to (a) cash flow management, (b) profitability management, (c) choice of inventory system, or (d) control of merchandise operations. 1. Decide

What is the minimum price per unit on the special order for Dockwiller Inc.?

Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: Per Unit Data Selling price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overh