BE2-4 Becky Sherrick's regular hourly wage rate is $14, and she receives an hourly rate of $21 for work in excess of 40 hours. During a January pay period, Becky works 45 hours. Becky's federal income tax withholding is $95, her FICA tax withheld is $53.20, and she has no voluntary deductions. Compute Becky Sherrick's gross e
Construct a p-chart for 95 percent confidence (1.96) and plot each of the months. If the next three months show crime incidence in this area as: What comments can you make regarding the crime rate?
The state and local police department are trying to analyze crime rates so they can shift their patrols from decreasing-rate areas to areas where rates are increasing. The city and county have been geographically segmented into areas containing 5,000 residences. The police recognize that not all crimes and offenses are reported:
Illinois Power & Heat just spend $5 million repairing one of its electrical generating stations that was damaged by a tornado. The loss was uninsured. Management has asked the public service commission for approval to treat the $5 million as an asset for rate-making purpose rather than as an allowed expense. What difference w
I would like to know what the problem means by *Compute the amount of overhead to be allocated to each product under activity-based costing*. Isn't it the amount of overhead already calculate? (See attached file for full problem description)
Identify each of the following expenditures as chargeable to (a) Land, (b) Land Improvements, (c) Buildings, (d) Machinery and Equipment, or (e) other account.
Question 13: Identify each of the following expenditures as chargeable to (a) Land, (b) Land Improvements, (c) Buildings, (d) Machinery and Equipment, or (e) other account. (1) Cost of paving parking area for employees and customers. (2) Insurance during construction of building. (3) Interest incurred on loan du
1. As a general rule, the maturity of assets should be matched with the maturity of the financing. When (if ever) do you think financial managers should deviate from this principle? 2. In theory, stock price is based on the present value of future cash flows. Could you use this principle to explain the stock price of a start-
Hale's TV Productions has acquired a script for a pilot episode of a new television show. A competitor has heard of the script, and offered Hale $100,000 for the script and rights to the series concept. If Hale decides to produce the pilot and market the series themselves, they'll face after-tax production costs of $100,000.
(Computation of Bond Liability) Lance Armstrong Inc. manufactures cycling equipment. Recently the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise fund
(Assumptions, Principles, and Constraints) Presented below are assumptions, principles, and constraints: 1. Economic entity assumption 5. Historical cost principle 9. Materiality 2. Going concern assumption 6. Matching principle 10. Industry practices 3. Monetary unit assumption 7. Full disclosure principle 11. Con
On December 31,2003, Bercalir, Inc. had 200,000,000 shares of common stock and 3,000,000 shares of 9%, $100 par, value cumulative preferred stock issued and outstanding. There were no preferred dividends in mrears as of January I, 2004. On March I, 2004, Bercalir purchased 24,000,000 shares of its common stock as treasuIy stock.
Abnormal earnings are: AEt= Actual earning t-Required or "normal" earnings t Which may be expressed as Aet= NOPAT t- (r x BVt-1) Where NOPAT is the firm's net operating profit after taxes, r is the cost of equity capital and BV t-1. Required: Solve the following problems: 1. If NOPAT is $5,000, r=15%, and BVt-1 is $50
Organet Stamping Company manufactures a variety of products made of plastic and aluminum components. During winter months, substantially all production capacity is devoted to lawn sprinklers for the following spring and summer seasons. Other products are manufactures during the remainder of the year. Because a variety of pro
You have been asked to prepare an analysis of the overhead costs in the order processing department of a mail order company like Lillian Vernon Corporation. As an initial step, you prepare a summary of some events that bear on overhead for the most recent period. the variable overhead flexible-budget variance was $5000 unfavorab
DIVISION ______________________________________ X Y Z Invested capital $2,000,000
(See attached file for full problem description) --- CASES 7-61 Bevans Company makes two products, product X and product Y. Bevans has produced product X for many years without generating any hazardous wastes. Recently, Bevans developed product Y, which is superior to product X in many respects. However, production of prod
Accounting is an information and measurement system that?
4. Oliver and Wendell are the two equal shareholders of Holmes Inc, an S corporation. It made an S election in its first year of operations. Each shareholder has a $10,000 basis in his stock at the beginning of the year. The corporation has $56,000 of net income from operations for the year and made a cash distribution of $80,00
How to calculate return on assets ? annual sales $5,000,000 with a net after tax margin of 5% and a sales to assets ratio of 4
What are some ways to manage your float and how do we measure float?
The Mussina Chemical Company produced three joint products at a joint cost of $117,000. These products were processed further and sold as follows. Chemical product Sales Additional processing Costs A $230,000 $190,000 B
See attached file for full problem description. --- John Ralph owns The Ralph Construction Company (RCC), a C corporation with a September 30, year end. For ten years RCC constructed special-purpose buildings and reported revenues on the percentage-of-completion method. John also owns Construction Equipment, Inc. (CE). CE
(See attached file for full problem description) --- Its income statement is as follows: Sales $2,628,000 Cost of Goods Sold 1,600,000 Gross Profit $1,028,000 Operating expenses: Selling expenses $300,000 Administrative expenses 400,000 Total operating expenses 700,000 Income from
SportsCards Inc. manufactures baseball cards sold in packs of 10 in drugstores and grocery stores throughout the country. It is the second leading firm in an industry with four major firms. SportsCards has been approached by Zip Cereal Inc., which would like to order a special edition of cards to use as a promotion with it new c
(See attached file for full problem description) --- Following is a list of products to be analyzed by value analysis: Classroom desk Bookends Mousetrap Electric Fan Backpack-style book toter Bike handlebars Fireplace grate Bike lock Coaster on which to set drinks Lamp part shown at the right (pic show the part (bla
Banbury Coporation offered to acquire the business operated by Luttrell Inc., in a type C reorganiztion. In addition to it business, Luttrell owns residential rental property ($420,000 FMV and $270,000 adjusted basis) that Banbury does not want. According to the reorganization plan, Banbury will issue voting stock in exchange
The Northern Division of the Kimball Company reported the following data for last year: Sales 800,000 Operating expenses 690,000 Stockholders' equity 250,000 Average operating assets 400,000 Minimum required rate of return 14% Reference: 12-10 The return on investment last year for the Northern D
You have decided to buy a new automobile, and have been gathering information about the purchase price. The manufacturer's website shows a "list price" of $24,500, which includes all of your preferred options- leather trim, CD player, and so on. You have also consulted the "blue book" guide to car prices and found that the ave
12. Scott and associates Inc, is an accounting firm that has three new clients. Project leaders will be assigned to the three clients. Based on the different backgrounds and experience of the leaders, the various leader-client assignments differ in terms of projected completion times. The possible assignments and the estimated
Please describe the interrelationships between 1. Income statement 2. Statement of Changes in Stockholders equity 3. Statement of cash flow 4. Balance sheet
Sounds Electronics, Inc produces a battery-operated tape recorder at plants located in Martinsville, NC, Plymouth, Ny and Franklin, Missouri. The unit transportation cost for shipments from the three plants to distribution centers in Chicago, Dallas, and New York are as follows To From Chicago Dallas New York Martinsvill