ABC is considering relaxing its credit standards. It expects the proposal will increase sales by 20% from $10 million. The ACP will increase from 35 to 50 days, and bad debts are expected to increase from 2% of sales to 7%. Variable costs are 60% of sales and fixed cost are $2.5 million a year. The opportunity cost is 16%. Assum
Please see attached question. A company produces the follow incomplete information regarding actual and budgeted direct material and production: Budgeted Actual Units produced 1,500 UNITS ? units Material used 6,000 kg 6,640 kg Price pad per kg $? $2.10 The following variances are known Material p
Please see attachment. Question 4 Blastoff Inc. manufactures sophisticated products used in the agriculture industry. The company has been approached by a customer who wants to buy 400 identical products at $200 per unit over the next 12 months. The data in respect of the production of each individual unit is as follows:
"The banking sector does need to have assistance because their failures affect the whole economic sector. These institutions will need to provide capital when the economy eventually changes from a recession to expansion. This in turn will need funding from the banks. This also affects people on a personal level. People will
The president of JMorgan has equipment for producing subassemblies is worn out, the decision need to be made quickly, if the company should rent new equipment and continue to make its subassemblies internally or whether it should discontinue production of its subassemblies and purchase them from an outside supplier Alternativ
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $100 Units in beginning inventory $0 Units produced $2,400 Units sold $2,100 Units in ending inventory $300 Variable cost per unit: Direct materials $31
1) In an income statement prepared using the variable costing method, fixed selling and administrative expenses would: a) be used in the computation of the contribution margin. b) be used in the computation of net operating income but not in the computation of the contribution margin c) be treated the same as
Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number of annual units sold of 1000. Item: Raw Materials (cost for hamburgers) Total Annual Cost: 650
Tess Corp acquires a 25% interest in Gardean Co. on Jan 1, 2004, for $550,000. At that time, Gardean had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2004, Gardean paid cash dividends of $330,000 and thereafter declared and issued a 5% common stock dividend when the market value was $3 per share. Ga
4. Evan Company manufactures and sells several products, one of which is called a slip differential. The company normally sells 30,000 units of the slip differential each month. At this activity level, unit costs are Direct materials $4 Direct labor 3 Variable manufacturing overhead 4 Fixed manufacturing over
Vaughn Corporation had net operating income of $380,000 and average operating assets of $2,000,000. The corporation requires a return on investment of 18%. Show all calculations supporting your responses! Required : a.Calculate the company's return on investment (ROI) and residual income (RI). b.Vaughn Corporation is
On Feb 1, 2004, one of the huge warehouses of RME Fireworks Company exploded. Windows in houses and other buildings within a one-mile radius of the explosion were severely damaged, and a number of people were injured. As of feb 15, 2004 (when the Dec 31, 2003, financial statements were completed and sent to the publisher for pri
On May 31, 2004, Porter Company paid $2,100,000 to acquire all of the common stock of Dryer Corporation, which became a division of Porter. Dryer reported the following balance sheet at the time of the acquisition: Current assets $500,000 current liabilities $400,000 noncurrent assets $1,800,000 long-term li
Assume that the following data relative to Eddy company for 2004 is available: Net Income: $1,400,000 Transactions in Common shares change cumulative 1/1/04, beginning number 500,000 3/1/04 (60,000) 440,000 6/1/04
SetAttached Problem. 3. The Stanley Company produces and markets two product lines: Racquets and Gloves. The following data were gathered on activities during the third quarter: Racquets Gloves Sales in units 1,000 5,000 Sales price per unit $100 $40 Variable production costs per unit $20 $8 Traceab
Attached Problem. 2. The Sterling Company uses a standard cost system in which manufacturing overhead costs are applied to the units of the company's single product on the basis of direct labor-hours (DLHs). The standard cost card for the product follows: Standard Cost Card-per unit of product: Direct materials, 4 yards
Adjusting Entries: Unearned rent at 1/1/06 was $3,300 and at 12/31/06 was $9,000. The records indicate cash receipts from rental sources during 2006 amounted to $40,000, all of which was credited to the Unearned Rent Account. You are to prepare the missing adjusting entry. For each journal entry write Dr for debit and Cr for cre
Quiz 15-4 Value of Tax Shields. Establishment Industries borrows $550 million at an interest rate of 6.2 percent. It expects to maintain this debt level into the far future. What is the present value of interest tax shields? Establishment will pay tax at an effective rate of 30 percent. Enter interest rate and tax rate as
Royal Dutch Petro (RDP) is considering a new equipment purchase that would replace some existing equipment. The old equipment has a Book Value (BV) of $400 thousand and RDP estimates that the equipment could be sold for ONLY $150 thousand. What is the After Tax Salvage Value (ATSV) of the old equipment that RDP should use in t
Please help with the following problem with step by step calculations. West Corporations was $50,000 which it plans to invest in marketable securities. The corporation is choosing between the following three equally risky securities: Alachua county tax-free municipal bonds yielding 6 percent; Exxon bonds yielding 9.5 percent
Standard cost problems I need help on please. 1.) Lido Company's standard and actual costs per unit for the most recent period, during which 500 units were actually produced, are given below: Standard Actual Materials Standard: 2 feet at $1.50 per foot $3.00 Actual: 1.9 feet at $1.60 per foot $3.04 Direct
XYZ Company has several products lines, all related to sports. The managers want you to determine whether they can save from dropping product A. If they drop this product they could recover the investment in receivable and inventory related to the line and pay off debt of $100,000 that bears 12% interest. The related data to
Hanna Company has to evaluate two products (A&B). The following data pertains to these products. Product A Product B Selling price per unit $60 $80 Variable cost per unit $40 $50 Total fixed costs 20000 30000 Find the quantities to be sold from each product to make you indifferent to choose Product A or Product B
Anna & Anna Corporation is a small table manufacturing company operating in the north of Puerto Rico. Managers estimate the following costs per unit (one table) Direct material (DM) $45.00 Direct labor (DL) $20.00 Variable manufacturing overhead(VMO) $24.00 Variable administrative expenses (VAE) $25.00 Monthly fixed
SAC has developed revolutionary manufacturing techniques utilizing its new spark plug manufacturing technology to offer special-order spark plugs for the auto racing industry. The company is currently using process costing for its spark plugs but is considering using job order costing for the new specialty spark plugs. How does
1. British Prime Minister Lady Thatcher proposed a poll tax that levied an equal amount of tax on each citizen regardless of his or her income. This tax was repealed after a brief trial period. Why do you think this tax was unpopular? Discuss the pros and cons of the tax and arrive at a conclusive answer.
Need help in preparing a 850 word document stating the accounting equation. Explain and define all components of the equation and provide examples of each. Please list references and do not copy word for word. Thank you.
You are the information systems auditor for PQR Preschools Pty Ltd. Over the course of the last internal audit, you have become suspicious that somebody in the Payroll department has been modifying electronic payroll data. You are to write a one-page memo to the payroll manager, Mr. Greg Grunter, informing him of you intention t
As SAC's corporate business financial analyst, you will need to have a clear understanding of the different types of costs (variable, fixed, and mixed) that the company carries. Review SAC's journal activity. Identify and define the variable, fixed, and mixed costs. Next, determine what affect a sales volume increase or decrease
Acme Company has to evaluate two products (A&B). The following data pertains to these products. Product A Product B Selling price per unit $60 $80 Variable cost per unit $40 $50 Total fixed costs 20000 30000 Find the quantities to be sold from each product to make you indifferent to choose Product A or Product B Ca