Perrson Company makes two types of backpacks. Data for the company's activity during a typical month are presented below: School Hiker Model Model Sales units 40,000 40,000 Selling price per unit $6 $18 Variable expense per unit
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Aero Company currently has net income of $3 million and 1.5 million common shares outstanding which sell for $20 per share. Aero has decided to issue new stock to raise $4,000,000 to expand its operations. Aero's investment banker will sell the new shares for $18 per share with a spread of 7%. There will be a $60,000 registratio
The Elite Corporation usually manufactures towels for the retail department store industry. It is considering whether or not to accept a special order on terms which differ from its normal pricing policy. The firm is highly automated and has a maximum production capacity of 40,000 towels per month and its actual current prod
What production combination will produce the greatest profit for the firm? Justify your choice. See attached file. The HighTech Corporation manufactures sound systems for the retail market. It makes two product lines: super model and deluxe model. Annual cost and production information is summarized below:
Assuming that direct labor is a variable cost, the primary difference between the absorption and variable costing is that: A. variable costing treats only direct materials and direct labor as product cost while absorption costing treats direct materials, direct labor, and the variable portion of manufacturing overhead as prod
Gandy Company has 5,000 obsolete desk lamps that are carried in inventory at a manufacturing cost of $50,000. If the lamps are reworked for $20,000, they could be sold for $35,000. Alternatively, the lamps could be sold for $8,000 for scrap. In a decision model analyzing these alternatives, the sunk cost would be: A. $8,000
A contract is awarded to the privately owned company that you work for. It will require the company to submit it's audited financial statements. Audits and audited financial statements are not familiar to the company's owner. Design a report for the owner as the Controller, and explain the work of independent CPAs, auditing stan
Our office orders 60 memory sticks at a time. The carrying cost is 40% of the $10 unit cost. And the annual demand is about 240 a year. What is the EOQ?
See the attached file. Make a Decision Introduction: You are the accountant of Selcom News, a local cable provider who offers services such as weekly TV guides and local-area information on weather, restaurants, and movie theaters to its subscribers. However, its main revenue is from the fees charged from its subsc
LTD is a diversified manufacturing company with a decentralized management structure. Each major division is treated as a profit center. One of the divisions is Taif, a chemical plant that produces a single product, XY. In recent years, the entire annual output of 400,000 tons of XY has been sold to another division, LA Ind,
Please help with the following problem involving dividend irrelevance. Dividend Irrelevance. You own 2,000 shares of patriot Corporation, which is about to raise its dividend from $.75 to $1.00 per share. The share price is currently $100. You would prefer that the dividend remain at its current level.
See pdf file attached Problem 13-2A: Calculation and analysis of trend percents L.O. A1, P1 Selected comparative financial statements of Haroun Company follow: HAROUN COMPANY Comparative Income Statements ($000) For Years Ended December 31, 2009-2003 2009 2008 2007 2006 2005 2004 2003 Sales $ 1,694 $ 1,496 $ 1,370 $ 1
1. Our office orders 60 reams of paper at a time. The carrying cost is 40% of the $10 unit cost and that annual demand is about 240 reams per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal? 2. Our office is facing an ordering relating to purchasi
Can you please help with some True/False and Multiple questions for an accounting class specializing in Business Taxation. My school is located in Minnesota so all US GAAP, etc would apply. 1. Dew-Drop Trust had a $10,000 of dividend income and a $7,000 capital gain for the year. The trust is a simple trust. Under state law b
The warrants of Integra Life Sciences allow the holder to buy a share of stock at $11.75 and are selling for $2.85. The stock price is currently $8.50. To what price must the stock go for the warrant purchaser to at least be assured of breaking even?
Do you think intangible assets and/or long-term liabilities may appear on your employer organization's balance sheet? Please include an explanation to support your answer.
What is the accounting equation? What does it tell you? Why does it have to balance? What happens if the equation does not balance? How does technology play a role in this?
James is a 50% partner in JL Partnership. James sells land at a loss of $20,000 to the partnership. Do you agree that James's loss involving the sale of the land to the partnership should be disallowed on his Form 1040? Why or why not?
Answer question in the attached file.
1. Lyle and Kaye James are married, have two minor children, Jessica age 8 and Jerron age 4, and are filing a joint tax return in the current year. They are both employed. Lyle and Kaye, ages 38 and 37, respectively, have combined salaries of $240,000, from which $42,000 of federal income tax and $10,000 of state income tax are
Acme Company performance bonus for Fred Riley. Comment on the effectiveness of the bonus plan used by Acme.
Acme Company manufactures a variety of industrial products which are sold throughout the country. Fred Riley has been manager the Eastern Branch of Acme Company for the past three years. Starting in year 2, he was able to qualify for a $50,000 annual bonus for meeting a target growth rate of 10% of gross sales. Income stateme
I need help figuring out the practice problems attached. Please show work were needed. Thanks so much for your help! Practice Problems Week 5 1. Managerial accounting information A) pertains to the entity as a whole and is highly aggregated. B) must be prepared according to generally accepted accounting principles
I am having problems with the following 5 accounting problems. Can you help me? I have attached my information to assist you. Thank you in advance for your assistance! Answer the five questions. Question #5, can be submitted in an in an Excel file. All other responses should be contained in a single Word file. Maximum leng
Question 34: Alaric Corporation recently sold equipment for $35,500. The equipment was purchased five years ago for $127,000. The accumulated depreciation on the equipment on the date of sale was $78,000. Alaric uses the indirect method to prepare its statement of cash flows. What net effect will this sale have on the investing
Question 33: Hanna Corporation's most recent balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $ 55 $ 44 Accounts receivable 55 50 Inventory 73 64 Plant and equipment 641 450 Accumulated depreciation ( 331) ( 345) Total assets $493
Please help with the following problem. Provide a simple solution for each. Ferrar Corporation has two major business segments - Consumer and Commercial. Data for the segment and for the company for March appear below: Sales revenues, Consumer $681,000 Sales revenues, Commercial $300,000 Variable expenses, Consu
Question 19: J Corporation has two divisions. Division A has a contribution margin of $79,200 and Division B has a contribution margin of $130,000. If total traceable fixed costs are $71,500 and total common fixed costs are $32,500, what is J Corporation's net operating income? $114,200 $93,200 $111,200
Question 17: (2 points) Ferrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March appear below: Sales revenues, Consumer $695,000 Sales revenues, Commercial $292,000 Variable expenses, Consumer $392,000 Variable expenses, Commercial $13
Question 15: (2 points) Recht Corporation's summary flexible budget for two levels of activity appears below: Cost Formula (per machine-hour) Activity (in machine-hours) 1,190 1,290 Total variable overhead cost $9.2 $ 10,948 $ 11,868 Total fixed overhead cost 18,088 18,088 Total overhead cost $29,0
See the attached file. Question 12: Asper Corporation has provided the following data for February. Denominator level of activity 7,200 machine-hours Budgeted fixed overhead costs $271,420 Fixed portion of the predetermined overhead rate $33.7 per machine-hour Actual level of activity 7,400 machine-hours Standard