1. Cost-Volume-Profits and Vending Machines Riccardo Food Services Company operates and services soft drink vending machines located in restaurants, gas stations, and factories in four southeastern states. The machines are rented from the manufacture. In addition, Riccardo must rent the space occupied by its machines. The follo
Dinesh Patel is the sales manager of Davidson Enterprises, a very profitable distributor of office furniture to local businesses. A recent economic downturn has created an extremely tight cash position, and the company has been hurt by the bankruptcy of two key customers. In late October, anticipating an economic recovery,
Tiger Corp purchases 1,200,000 units per year of one component. The fixed cost per order is $25. The annual carrying cost of the item is 27% of its $2 cost. a) Determine the EOQ under each of the following conditions: (1) no changes, (2) order cost of zero, and (3) carrying cost of zero. b) What do your answers illustrate
Jasmine Scents has been given two competing offers for short term financing. Both offers are for borrowing $15000 for 1 year. The first offer is a discount loan at 8%, the second offer is for interest to be paid at maturity at a stated interest rate of 9%. Calculate the effective annual rates for each loan and indicate which loa
Belltown Athletic Supply (BAS) makes game jerseys for athletic teams. The F.C. Kitsap soccer club has offered to buy 100 jerseys for the teams in its league for $15 per jersey. The team price for such jerseys normally is $18, an 80% markup over BAS's purchase price of $10 per jersey. BAS adds a nmae and number to each jersey at
The Skill Craft Appliance Company has two products: a plain mixer and a fancy mixer. The plain mixer sells for 464 and has a variable cost of $48. The fancy mixer sells for $100 and has a variable cost of $70. 1. compute contribution margins and contribution-margin ratios for plain and fancy mixers. 2. The demand is for more
The Monroe Company has budgeted sales for the year as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 sales in unit 10,000 12,000 14,000 16,000 The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in un
I need help understanding this question: Acmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year: September $850,000 October $900,000 November $810,000 December $780,000 At Acmal, 25% of raw materials purchases are normally paid for in the month
Phillip developed hip problems and was unable to climb the stairs to reach his second-floor bedroom. His physician advised him to add a first-floor bedroom to his home. The cost of constructing the room was $32,000. The increase in the value of the residence as a result of the room addition was determined to be $17,000. In addi
Please read the attached article (Increasing the Relevance of Undergraduate Accounting Education) and discuss how to improve undergraduate accounting education.
See attach files. A company had the following information: The ending balance in the Retained Earnings account is: $61,000 $63,000 $65,000 $74,000 Table 16-1 Referring to Tables 16-1 and 16-2, the cash paid for patents by Silver Company in 20X6 was: $0 $12,000 $2,400
During the year, Kirk travels from Trenton to Oslo (Norway) on business. His time was spent as follows: 2 days travel (one day each way), 2 days business, and 2 days personal. His expenses for the trip were as follows (meals and lodging reflect only the business portion): Air fare $3,300 Lodging 900 Meals and entertainment
E12-16 (Accounting for R&D Costs) Leontyne Price Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2006 the company expends $325,000 on a research project, but by the end of 2006 it is impossible to determine whether any benefit will be derived from it. Instructions
Goria Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $133.60 per unit. Sales volume(units) 4,000 5,000 Cost of sales $383,600 $479,500 Selling
Jupiter Corporation manufactures skateboards. Several weeks ago, the firm received a special-order inquiry from Venus, Inc. Venus desires to market a skateboard similar to one of Jupiter's and has offered to purchase 11,000 units if the order can be completed in three months. The cost data for Jupiter's model no. 43 skateboard f
The company is deciding whether to invest in a certain capital investment. The investment requires an initial outlay of $55,000 and annual payments of $12,000 made at the end of the year for five years. The company's discount rate is 14%. What is the present value of cash outflows related to this investment?
Antioch Extraction, which mines ore, uses a calendar year for both financial-reporting and tax purposes. The following selected costs were incurred in December, the low point of activity, when 1,500 tons of ore were extracted: Straight line depression 25,000 Charitable contributions 11,000 (incurred only in December)
Problem 1. Rio Bus Tours has incurred the following bus maintenance costs during the recenttourist season. (The real is Brazil's national monetary unit. On the day this exercise was written, the real was equivalent in .4378 US dollar.) Month Miles traveled by the us Cost Nov 8,500 11,400 real Dec 10,600 11,600
Statutory employees: a. Report their expenses on Form 2106. b. Include common law employees. c. Are subject to income tax withholdings. d. Claim their expenses as deductions for AGI. e. None of the above. Felicia works as an auditor for a large major CPA firm. During the months of October and November of each year, she i
Newdex has net income of $2,500,000 and 1,000,000 shares outstanding. It needs to raise $3,610,000 in funds for a new asset. Its investment banker plans to sell an issue of common stock to the public for $40, less a spread of 5%. How much must Newdex's aftertax income increase to prevent dilution of EPS? a) $40,000 b0 $237,5
See the attached file for the question and table.
Toni adds $3,000 to her savings on the first day of each year. Tim adds $3,000 to his savings on the last day of each year. They both earn a 9% rate of return. What is the difference in their savings account balances at the end of thirty years? The choices follow: $35,822.73 $36,803.03 $38,911.21
What are the tax consequences to a corporation that is liquidated? Provide an example.
EAR versus APR Big Dom's Pawn Shop charges an interest rate of 16 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers. (Do not include the percent sign (%). Round your answers to 2 decimal places, e.g. 32.16.) What rate should the shop report? percent What is the effect
1. Brady Company sells imported goods made in India. One product it sells is a wooden music box. The music box cost Bray $65, and Brady charges its customers a price of $250. Brady's cost of capital is 12%. On average, an entire year elapses between the time Brady pays for a music box and the time Brady collects the cash fr
Compare and contrast maximizing profit and maximizing shareholder wealth. List comparisons and list contrasts for discussion. Use examples from financial websites which indicate ways companies are maximizing profit and/or shareholder wealth.
3-38 Alimony. As a result of their divorce, Fred agrees to pay alimony to Tammy of $20,000 per year. The payments are to cease in the event of Fred's or Tammy's death or in the event of Tammy's remarriage. In addition, Tammy is to receive their residence, which cost them $100,000 but is worth $140,000. a. Does the fact tha
Tri-Star Productions, Inc. is evaluating two different operating structures which are described below. The firm has annual interest expense of $250, common shares outstanding of 1,000, and a tax rate of 40 percent. Fixed Costs Price per Unit Variable C
Why do small companies allow only one signature approval on checks?
25. Red Tide County contributed two acres of land worth $500,000 to Misty Inc. in exchange for its commitment to develop a landfill. Which of the following is a true statement concerning this transaction? A. Misty must issue stock to the county in exchange for the land. B. The corporation's basis in the land is zero. C. The