Could use some help on the following accounting questions: Poin Company recently incurred the following costs: 1. Purchase price of land and dilapidated building 280,000 2. Real estate broker's commission 14,000 3. Net demolition costs of dilapidated building 42,000 4. Excavation costs for ne
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Q1- Linda operates a drug-running operation. Which of the following expenses she incurs can reduce taxable income? a. Bribes paid to border guards. b. Salaries to employees. c. Price paid for drugs purchased for resale. d. Kickbacks to police. e. Rent on an office. f. Depreciation on office furniture and equipment. g. Ten
What is the major distinction between revenues and gains? What is the major distinction between expenses and losses? and what is the basis for distinguishing between operating and non-operating items?
Can you think of a product and/or service that would characterize elastic demand? Inelastic demand?
Overhead analysis. Armstrong Corporation uses standard costing. The following information is for 2004: Static-budget machine-hours 33,000 Fixed overhead budget cost $4,950,000 Fixed overhead actual cost $4,500,000 Variable overhead actual cost $96,000,000 Variable overhead rate per machine-hour $300 Actual machine-h
The net income of Simon and Hobbs, a department store, decreased sharply during 2000. Carol Simon, owner of the store, anticipates the need for a bank loan in 2001. Late in 2000, Simon instructs the store's accountant to record a $10,000 sale of furniture to the Simon family, even though the goods will not be shipped from the ma
1. Go to http://www.annualreports.com/ 2. Enter your company's name in the Search by Company Name field. Choose Proctor & Gamble 3. Click Search. 4. Click the hyperlink that appears with your company's name. Open the PDF or HTML version of the annual report. Read the letter to shareholders from the CEO or chairman
Smooth Brew manufactures cappuccino makers. For the first eight months of 2006, the company reported the following operating results while operating at 80% of plant capacity: Sales (120,000) $6,000,000 Cost of Goods Sold 3,600,000 Gross profit 2,400,000 Operating Expenses 1,800,000 Net income $ 600,000 An ana
Escher Skateboards has been manufacturing its own wheels for its skateboards. The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 30% or direct labor cost. The direct materials and direct labor cost per unit to make the wheels are $1.50 and 1.80, resp
Harrison Clothiers' stock currently sells for $20 a share. It just paid a dividend of $1 a share (D= 1.00) The dividend is expected to grow at a constant rate of 6% a year. What stock price is expected 1 year from now? What is the required rate of return?
A farmer near Bloomington owns a combine and uses it ti provide harvesting service to other farmers. He receives revenue of $40,000 a year, plus the avoidance of $2,000 in fees he would have to pay someone else to harvest his wheat if he did not own the machine. Fuel and repairs are $10,000 a year and the farmer does not have another profitable use for the time he spends harvesting wheat. Unfortunately, the existing combine is worn out and fully DEPRECIATED. It can be sold for its $1,000 spare parts value, but a dealer will allow $5,000 as a trade in allowance on a new $100,000 combine. The new combine will last for a estimated 10 years , after which it will have a negligible salvage value. The farmer is in a 28percent tax bracket and requires 10 percent after tax return on investments. IS THE NEW COMBINE AN ATTRACTIVE INVESTMENT? (assume January 1 installation)
A farmer near Bloomington owns a combine and uses it ti provide harvesting service to other farmers. He receives revenue of $40,000 a year, plus the avoidance of $2,000 in fees he would have to pay someone else to harvest his wheat if he did not own the machine. Fuel and repairs are $10,000 a year and the farmer does not have a
5.The following forecasts of earnings per share (EPS) and dividend per share (DPS) were made at the end of 2007 for Company ABC: 2008E 2008E 2009E Next Three Years EPS 4.35 5.23 Growth at 11% DPS 0.55 0.68 Growth at 11% The book value of ABC's common equity at the end of 2007 was $13.89 per share. Please use t
An analyst makes the following forecasts of cash flows for a firm with $2 billion of debt at the end of 2006 (in millions of dollars): 2007 2008 2009 Cash flow from operations $1,460 $1,680 $1,780 Cash investment $ 580 $ 585 $ 805 The free cash flow will grow at a rate of 4% per year after 2009. The
Olivo Company manufactures products that it sells for $33 each. Variable costs are $22 per unit, and annual fixed costs are $454,900. Use the EQUATION METHOD to calculate the sales in units that will result in a $28,000 profit. (selling price/unit) x (# of units) = (variable rate/unit) x (# of units) + total fixed costs +
Ronnie Cat Inc., produces and sells electric lawn mowers for $270 each. The variable costs of each mower total $165 while total monthly fixed costs are $19,950. Current monthly sales are $101,250. The company is considering a proposal that will increase the selling price by 5.55%, increase total fixed costs by 50% and increase unit sales to x units per month. Required. 1.) Compute the company's current break-even point in units and dollars. 2.) Compute the company's break-even point in units and dollars under the proposal. 3.) Would you recommend the company accept the proposal.
Ronnie Cat Inc., produces and sells electric lawn mowers for $270 each. The variable costs of each mower total $165 while total monthly fixed costs are $19,950. Current monthly sales are $101,250. The company is considering a proposal that will increase the selling price by 5.55%, increase total fixed costs by 50% and increase u
Question 12: A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10. The revised EOQ is: a) three times as large b) one-third as large c) nine times as large d) one-ninth as large e) cannot be determined Please select the right answer and explain how you have calculated it
Norton's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following unit data apply: Model X Model Y Model Z Selling Price $80 $90 $100 Direct Materials
Please see the attached file. 1) Compute the budgeted manufacturing overhead rate for 2004. 2) Compute the under-or over-allocated manufacturing overhead of Zaf Radiator in 2004. Dispose of this amount using a) Write-off Cost of Goods Sold b) Proration based on ending balances (before proration) in Work i
Please see the attachment. 3. After examining the records of AIS Consultants Incorp., you determined the following end-of-year amounts: 2006 2005 Credit Sales 200,000 160,000 Accounts Receivable 45,000 40,000 Allowance for Bad Debt 2,000 1,000 AIS Consultants uses the percentage-of-sales method to estimate bad deb
Please see the attachment. 1. (8pts) Match as many of the descriptions as possible with one of the terms. If no match is possible, answer "7." Place the number to the right of the letter below. a. Reports the major classes of operating cash receipts and payments of an entity during a period b. Investing and financin
GIVE FEW EXAMPLES OF HOW A BUSINESS MIGHT PROTECT ITSELF AGAINST UNCOLLECTED ACCOUNTS AND WHAT PROTECTION METHODS ARE REALLY WORTH THE EXPENSE. PLEASE GIVE A FEW EXAMPLES FOR EACH.
1. An improvement made to a machine increased its fair market value and its production capacity by 25% without extending the machine's useful life. The cost of the improvement should be ...... (expensed, debited to accumulated depreciation, capitalized in the machine account, allocated between accumulated depreciation and the
BMS Inc Selected Financial Data December 31, 2007 Current assets 150,000 Current liabilities 100,000 Inventories 50,000 Accounts receivable 40,000 Net sales 900,000 COGS 675,000 Current ratio: Quick ratio: Average collection period: Inventory turnover: Explain
If the supply/demand for a product are given by: Supply: p = 1/6q^2; demand p = -1/6q^2 +36 Where p is the price and q is quantity. What is the equilibrium price?
How to calculate manufacturing overhead budget and sales budget? Zeller Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $12 and $25, respectively. Because of the intense competition Zeller faces, management budgets sales semiannually. Its projections for the
Based on the analysis of the last six months' sales, your boss notices that sales of beef products are declining in your chain's restaurants. As beef entrée sales decline, so do profits. Fearing beef sales have declined due to several newspaper stories reporting E.coli contamination discovered at area grocery stores, he sugge
Company's current return on equity is 14%. It pays out one half of earnings as cash dividends (payout ratio = .5). Current book value per share is $50. Book value per share will grow as the company reinvests earnings. Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE
Not-for-profit entities usually receive minimal - if any - revenue from traditional sources like sales. Discuss the accounting issues that arise because of this.
Please help answer the following question regarding accounting. Provide at least 200 words. Can you describe for me the two major constraints inherent in the presentation of accounting information and the significance they play in financial accounting?
The controller for Tulsa Photographic Supply company has established the following activity cost pool and cost drivers Activity cost pool budgeted overhead cost machine setup................. $250,000 Material handling.............. 75,000 Hazardous waste control........ 25,000 Qu