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Accounting

Contribution Margin of G+ Company

G+ Company is a division of GHI Company. This data pertains to G+ division. Sales amounted to $800,000. Cost of sales is 60% of sales. Other direct expenses of the division amount to 15% of sales. Allocated expenses are $90,000. Interest amounts to 10% of long-term debt. Taxes are 30% of income. Total assets are $500,000

Reducing variable production costs

A company estimates that spending $29,500 in employee training will result in reducing variable production costs by 6%. Production and sales amount to 4,400 units. Selling price is $200 per unit and total product cost is $150 - 60% of which is variable cost. What is the advantage / disadvantage of this action?

Future Taxable Amounts and Deferred Taxes

I have a problem on future taxable amounts and deferred taxes and I am totally lost. The information is attached. I don't know where to begin the calculations. I need some help with this problem. The following information is available for a corporation for 2006. 1. Exess of tax depreciation over book depreciation, $40,00

Recommendations for Investments

Bernie and Pam Britten are a young married couple beginning careers and establishing a household. They will each make about $50,000 next year and will have accumulated about $40,000 to invest. They now rent an apartment but are considering purchasing a condominium for $100,000. If they do, a down payment of $10,000 will be requi

Qualifying a Sales Lead for TeleReach

You have been assigned to a TeleReach client account that sells technology supplies for any type of printers or computers. The qualifier on the account is a minimum of either 25 PCs or 10 laser printers. Who would you ask and how would you ask a question(s) in order to find out if the company you are calling is qualified or not?

Manufacturing overhead budget and budget income statement

Problem 1 Prepare a manufacturing overhead budget For Savage Inc. variable manufacturing overhead cost are expected to be $20,000 in the first quarter of 2005 with $2,000 increments in each of the remaining three quarters. Fixed overhead cost are estimated to be $35,000 in each quarter. Instructions Prepare the manufa

Deferred tax liability .

BE19-10. Terminator Corporation has a cumulative temporary difference of $630,000 at December 31,2007. This difference will reserve as follows: 2008, $42,000; 2009, $294,000; and 2010, $294,000. Enacted tax rates are 34%, for 2008 and 2009, and 40 % for 2010. Compute the amount Terminator should report as a deferred tax liabilit

Potential Money Supply Increase And Process of Creation

Assume the banking system is in reserve equilibrium. The Fed conducts an open market purchase of Treasury securities in the amount of $1 billion. The reserve requirement against deposits is 10%. Identify the potential amount of the money supply increase as a consequence of the Fed's action and describe fully how money is crea

Walter Industries Case Study: Assets & Sales Questions

Walter Industries has $5 billion in sales and $1.7 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity. a. What level of sales could Walter Industries have obtained if it had been operating at full capacity? b. What is Walter's target fixed assets/sales ratio? c. If Walter's s

Book Value of Retained Earning

The value of Retained Earnings reflected on the Balance Sheet, then, reflects the total of all earnings retained since company inception. A question for you, is the book value of Retained Earnings the value that the company has the option to pay out as current dividends? Why or Why not? Please include references.

Savings Comparison: Contribution or Interest Earned

36. Last year, you deposit $25,000 into a retirement savings account at a fixed rate of 7.5 %. Today, you could earn a fixed rate of 8% on a similar type account. However, your rate is fixed and cannot be adjusted. How much less could you have deposited last year if you could have earned a fixed rate of 8% and still have

How will the income effect of a fall in wages affect hours worked?

1. How will the income effect of a fall in wages affect hours worked? 2. How will the substitution effect of a fall in wages affect hours worked? Explain your answers using concepts from the reading assignment as well as your personal experiences. What conflicts may exist between a firm's desire to maximize profits and

Important information about budgeted gross revenue

The company performs tune-ups on standard diesel engines, Using the following information, compute the budgeted gross revenue for the period. gross revenue per tune $180 tune-up capacity per day 13 number of working days in period 76 historical occupancy rate* 65% *This refers to the rate at which the companie

The answer to Leverage

The Sosa Company produces baseball gloves. The company's income statement for 2004 is as follows: SOSA COMPANY Income Statement For the Year Ended December 31, 2004 Sales (20,000 gloves at $60 each) $1,200,000 Less: Variable costs (20,000 gloves at $20) 400,000 Fixed costs 600,000 Earnings before interest and taxes (EBIT

Expected Cash Collections and Disbursements Schedules

I really am not sure how to go about doing any of this problem. I guess figuring out the percentages would be the most help. So I can figure out the total amount for the collections. The "actual sales" part in the question is also throwing me off. Like I said any help would be great. All sales at Bell Company are made on cre

A Not-for-Profit Organization Receives a Restricted Gift

Provide examples of resources that are temporarily restricted as to: (a) purpose; (b) time; and (c) the occurrence of a specific event. Provide an example of permanently restricted resources. A not-for-profit organization receives a restricted gift. When, and in which type of fund, should it recognize the revenue? When, and

Effect of financial reporting on business operations

I just need an informal response that explains the reasoning behind this. I know it's required to be reported and affects the valuation of a company and forecasting profit but beyond that, I'd like to know the effects this info has on operations specifically. The question: In the U.S.A., publicly traded companies must repo

Employee Embezzlement via Cash

Please can you provide me with some background information on the risks inherent in the transaction cycle. I just need to have some information so I can continue researching this topic. Attached is the case study. Thanks,

Duffy Corporation: Stockholders' Equity

Duffy Corporation has these accounts at December 31: Common Stock, $10 par; 5,000 shares issued, $50,000; Paid-in Capital in Excess of Par Value $18,000; Retained Earnings $32,000; and Treasury Stock - Common, 500 shares, $12,000. Prepare the stockholders' equity section of the balance sheet.