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Accounting

Lockboxes

Bird's Eye Treehouses, Inc., a Kentucky company, has determined that a majority of its customers are located in the Pennsylvania area. It therefore is considering using a lockbox system offered by a bank located in Pittsburgh. The bank has estimated that use of the system will reduce collection time by two days. Based on the fol

Generating Operating Income

Moon company sells product Q at $6 a unit. In 2000 fixed costs are expected to be $200,000 and variable cost are estimated at $4 a unit. How many units of Product Q must Moon sell to generate operating income of $40,000?

Adjustments to the Earnings Per Share

In calculating earnings per share, the equivalent number of convertible preferred shares are added as an adjustment to the denominator (number of shares outstanding). If the preferred shares are cumulative, which amount should then be added as an adjustment to the numerator (net earnings)? a) Annual preferred dividend, b) Ann

Special promotion- expects of a 1 cent sale.

See attached file. The management of Rocko's Pizzeria is considering a special promotion for the last two weeks of October, which is normally a low demand period. The special promotion would involve selling two medium pizzas for the price of one, plus 1 cent. The medium pizza normally sells for $ 12.99 and has variable expen

The Effects on the Accounting Equation

Jane Dow opens an apartment-location business near a college campus. She has a sole proprietorship. During the first month of operation, she has the following transactions. Note the effect on the accounting equation (credits/debits) for each. Be sure to list each specific account impacted: a. She invests $35,000 of personal

Evaluting an overhead report

Bill Jones, Superintended of Griggs Company's Milling Department, is very happy with his performance report for the past month. The report follows: Griggs Company Overhead Performance Report-Milling Department Actual Budget Variance Machine hours 30,000 35,000 Variable manufacturing overhead: Indirect labor

Applied Costs and Overhead Rate

Hightower INC., of Aberdeen, Scotland, produces a single produce and uses a standard cost system to help control cost. Manufacturing overhead is applied to production on the basis of standard machine-hours. Please see the attached documents to see the company's flexible budget. Based on their budget the overhead costs should be

Preparing an overhead Performance Report

Don's company has a comprehensive budgeting system in operation for several years. Feelings vary among the managers as to the value and benefit of the system. The line supervisors are very happy with the reports being prepared on their performance, but upper management often expresses dissatisfaction over the reports being prepa

Adjusting Accounts

This should be an easy fix for anyone with accounting experience. I have two attachments. The first attachment is called problem and that will guide you. The second attachment is the same template used in a very similar question but with different numbers and company name. Make the necessary changes on the excel sheet using the

Calculate: Long-term Financing and Total Debt

At year-end 2007, total assets for Bertin, Inc. were 1.2 million and accounts payable were $375,000. Sales, which in 2007 were $2.5 million, are expected to increase by 25% in 2008. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Bertin typically uses no current liabilities

A tutorial that explains how to calculate the Equilibrium price of a product, cross price elasticity of demand, Income elasticity of Demand and Elasticity of Demand. The tutorial also explains how to determine the exogenous and endogenous variables in a function.

1. Suppose the market demand curve for a Product is given by Q = 250 - 5P and the market supply curve is given by Q = -50 + 25P. 1. What are the equilibrium price and quantity in this market? 2. At the market equilibrium, what is the price elasticity of demand? 3. Suppose the price in this market is $8. What is the amou

Tax provision problem

This is a discussion question about tax provisions. A paragraph will be enough. Please explain the solution in your own words. If there is a tax provision pending before Congress that will negatively effect a transaction of a client, what would you advise your client to do? In this environment, I would advise my client to

Acc Multiple choice questions

1. Which of the following is the most appropriate and modern definition of accounting? A) The information system that identifies, records, and communicates the economic events of an organization to interested users B) A means of collecting information C) The interconnected network of subsystems ne

Accounting Multiple choice practice questions

Practice questions to study for my final Attached you will find practice questions to be answered True or False and multiple choice questions that will help me study for my final exam. Please help me completing these practice problems so that I can get ready for my final exam thank you.I need this paper in order to study this

Accounting reporting criteria

The historical cost vs fair market value relating to national and international companies. There are four components. 1. Defining historical cost 2. Defining fair market value 3. historical cost vs. fairmarket value ( based on accounting reporting criteria) 4. comparing and contrasting accounting reporting criteria of a co

3 problems

Items 8-A1, 8-A3, and 8-26 (circled). Please show all work/calculations. Any questions you may have will get quick responses. thanks! 8-A1 Flexible and Static Budgets Burton Transportation Company's general manager reports quarterly to the company president on the firm's operating performance. The company uses a budget

How would you advise Dr. White to prepare for reduced budgets?

Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or redu

Solving a Forward Rate Problem

The prices of two Treasury Bills are P1 = 98.05, P2 = 96.00. The bond with price P1 matures in 3 months, the bond with price P2 matures in 6 months. All bonds have maturity value of $100. There is an active forward market for delivery in three months of Treasury Bills with three months to maturity. What is the forward rate today

What % of the portfolio should be invested in treasury bills?

You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of treasury bills that pay 5% and a risky portfolio, P, constructed with 2 risky securities X and Y. The weight of X and Y in portfolio, P, are 60% and 40% respectively. X has an expected rate of return of 14% and Y has an expecte

Accounting Standards: Example Problem

To hope there would be one set of international accounting standards seems vague. From what I read, the US has a very complicated system in comparison to the international systems. To adopt international accounting standards means to some extent a lowering the US standards. What would you say?

Manufacturing Methods

Candice Company has decided to introduce a new product. The new product can be manufactured by either a capital intensive method or labor intensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows. Capital Intensive Labor In

IRS Case Study

Can please help me start the answer to the following case study? I:15-64 A client, Mal Manley, fills out his client questionnaire for the previous year and on it provides information for the preparation of his individual income tax return. The IRS has never audited Mal's returns. Mal reports that he made over 100 relatively s

Discussion Question

A taxpayer receives a $40,000 capital gains distribution in December from a mutual fund. Assuming no estimated tax payments were made during the year and his only withholdings were from his W-2, what can the taxpayer do to avoid an underpayment penalty? How can this taxpayer avoid this situation in future years?

Advantages, disadvantages of Cost Centre managers or Profit Centre managers

Your Company operates in 25 countries around the world and have diverse products, service and business portfolio. Your are looking at ways to maximise profits for your company as a whole and as such, you are investigating different ways to measure the performance of individual managers who each have responsibility for one part

Cost of land vs. building

(Cost of Land vs. Building) Field Company purchased a warehouse in a downtown district where land values are rapidly increasing. Adolph Phillips, controller, and Wilma Smith, financial vice-president, are trying to allocate the cost of the purchase between the land and the building. Noting that depreciation can be taken only on