12. Which of the following is a change in accounting principle? a. A change in the estimated service life of machinery b. A change from FIFO to LIFO c. A change from straight-line to double-declining balance d. A change from FIFO to LIFO and a change from straight-line to double-declini
For several years, a number of Food Lion, Inc., grocery stores were unprofitable. The company closed, and continues to close, some of these locations. It is apparent that the company will not be able to recover the cost of the assets associated with the closed stores. Thus, the current value of these impaired assets must be w
Garth Brooks Specialty Company, a division of Fresh Horses Inc., manufactures three models of gear shift components for bicycles that are sold to bicycle manufacturers, retailers, and catalog outlets. Since beginning operations in 1975, Brooks has used normal absorption costing and has assumed a first-in, first-out cost flow in
14. Actual results might differ from the static budget because _____. a. sales and other cost-driver activities were not the same as originally forecasted b. revenues or variable costs per unit of activity were not as expected c. fixed costs per period were not as expected d. all of these answers are correct  15. Effect
Assume that the tax law allows individuals to claim an itemized deduction for the cost of music lessons for the taxpayer or any member of his family. Instead of this deduction, individuals may claim the first 1000 of the cost as a nonrefundable tax credit (no carry forward or carry back of any excess credit). In each of the foll
Discuss how the following transactions would fit into the accounting equation. Fitness Solutions sold 1,250 of its $600 annual memberships to its fitness centers in 2006. Fitness Solutions earned $400,000 in revenues from providing the services of a personal trainer. Fitness Solutions reported $850,000 in sales from sell
Congratulations! You just graduated with a business degree and accepted a new position with the investigative unit of the FBI's white-collar crimes division. You are a leader on a team of law enforcement investigators called to examine alleged accounting fraud at Fitness Solutions. Fitness Solutions, headquartered in Dallas,
Details: Your friend, Don Jones, has provided you with the following information about his new home inspection business, which he is operating as a sole proprietorship. Using the accounting equation, analyze and report Don's business transactions for the months of September, October and November. Since Don is planning to do his
1. Lynam Company's fixed budget for the 1st quarter of calendar year 2007 revealed the following. Prepare flexible budgets that show variable costs per unit, fixed costs, and 3 different flexible budgets for sale volumes of 6,000, 7,000 and 8,000 units. Sales (7,000 units) $2,800,000 Cost of Goods
Firm D has a net income of $27,900, sales of $390,000, and a average total assets of $465,000. Calculate the firm's margin, turnover, and ROI Firm E has net income of $75,000, sales of $1,250,000, and ROI of 15% Calculate the firm's turnover and average total assets. Firm F has ROI of 12.6%, average total assets of $1,73
Please see the attached case study and answer the following: 1. Compute 2004 income for Parque Corporation using the FIFO inventory flow assumption. Ignore income taxes. 2. Did Parque Corporation really earn a profit from its operating activities in 2004? 3. Given the circumstances described, what risks exist that coul
The president of Jeanette Corporation is in a dilemma regarding which inventory method (LIFO or FIFO) to use. The controller of Jeanette Corporation provides the following list of factors that should be considered before making a choice. 1. Jeanette Corporation has borrowed money during the current month and has entered into a
1. A business organized as a corporation A) is not a separate legal entity in most states. B) requires that stockholders be personally liable for the debts of the business. C) is owned by its stockholders. D) has tax advantages over a proprietorship or partnership. 2. A business organized as a separate legal
Quick-Rite Company manufactures computers. The following cost information for the manufacture of one computer has been compiled: Direct Materials $48 Direct Labor $64 Variable manufacturing overhead $36 Variable selling & administrative expenses $12 Fixed manufactu
KX Corporation makes stools and tables. The company can sell as many stools and/or tables as it can produce, buts machine-hour capacity is limited. Revenue and cost data for each unit are given as follows: Stool Table Selling Price
Cecil Company presently has three product lines: papers, stamps and computer ribbons. The company is profitable overall but is considering discontinuing the stamp line because of losses from that line. Current data on the stamp line is as follows: Sales Revenue $27000 Variable Costs $19000 Direct Avoidable F
Can you help me understand this question? Hildes Dairy is considering adding a new line to their already profitable business. Market research indicates that sales revenue for the new line would be $30,000 for 25,000 units. Variable costs for the new product would be $0.85 per unit. Additional direct (avoidable) fixed costs wo
When using the scattergraph method to analyze mixed costs, the slope of the resulting line represents the: a) variable cost per unit b) fixed cost c) opportunity cost per unit d) total variable cost e) none of the above
For the year, Express Graphics forecasts cash receipts of $430,000 and cash disbursements of $405,000. The beginning cash balance is $21,000. If express maintains a minimum cash balance of $50,000, how much must the company borrow? a) 4000 b) 25000 c) 46000 d) 54000
Determer Enterprises has budgeted sales in units for the next four months as follows: February 6800 units March 5400 units April 7200 units May 4600 units Determer's product sells for $20 each. Experience has shown that 10% of the company's sales are cash sales. Th
EEC currently uses a basic standard cost system. Management knows very little about other concepts of costing and the benefits of having multiple costing methods. Your superior has asked that you and your team put together a presentation to management explaining various costing concepts as it relates to EEC. As an EEC corpor
Please see attached. Thrifty Co. reported net income of $465,000 for its fiscal year ended January 31, 2009. At the beginning of that fiscal year, 200,000 shares of common stock were outstanding. On October 31, 2008, an additional 60,000 shares were issued. No other changes in common shares outstanding occurred during the yea
McDonald (In millions of USD) 2008 2007 2006 Net sales $23,522.40 $ 22,786.60 $20,895.20 Acct Recv 931.20 1,053.80 806.90 2008 23522.40/(1053.80+931.20)/2 = 23522.4/1985 =23.70 times or 15 days 2007 22786.6/(1053.80+806.9)/2= 22786.6/930.35=24.50 times or 15 days" now to compare it to Burger King (BKC) 2008
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.......
Can you help me get started with this assignment? Paul, Janie, and Kyla, incorporate their perspective businesses and form Blue Corporation. On April 1 of the current year, Paul exchanges his property (the basis of 50,000 and value of 150,000) for 150 shares in Blue Corp. On May 15, Janie exchanges her property (the basis of
Can you help me with these three problems? 1. Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (8,400 units) $764,400 Variable expenses 445,200 Contribution margin 319,200 Fixed expenses 250,900 Net operating income
I am trying to figure out how to compute the net cash provided by operating activities and how to explain why the net cash provided by operating activities is greater than the net income? The company had net earnings of 2,408 million in the first fiscal year ending January 28...the following info is in millions year end
In a father-son-grandson business combination, which of the following is true? a) The father company always must have its realized income computed first. b) The computation of a company's realized income has not effect on the realized income of other companies within a business combination c) A father-son-grandson configura
The Green Giant has a 5% profit margin and a 40% dividend payout ratio. The total asset turnover is 1.40 and the equity multiplier is 1.50. What is the sustainable rate of growth? A. 6.30% B. 6.53% C. 6.72% D. 6.80% E. 6.83%
Bet'r Bilt Toys just purchased some MACRS 5-year property at a cost of $230,000. Which of the following will correctly give you the book value of this equipment at the end of year 2? MACRS 5-Year property Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.5