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Accounting

Purchasing a New Television

Assume you want to purchase a new TV. Your current TV was purchased 3 years ago for $200. You have gathered the following information about the two models in final consideration: Factors Xenabox 1000 BigScreen 1050 Screen Size 32 inch 32 inch Picture Quality Great

Deferred Tax Assets

A company reports deferred tax assets of $200 M. * Describe how deferred tax assets relating to accruals arise * Explain how deferred tax assets relating to loss carry forwards arise * A company reports an increase of its deferred tax asset valuation allowance of $3 M in 2012. How does this affect income?

Comprehensive Variance Analysis for Turner Corporation

Turner Corporation produces overdrive transmission parts for several small specialty automobile companies. Prior to founding the firm, Benson Turner, the company's president, had an illustrious stock-car-racing career. After several serious injuries, Benson's family convinced him that it was time to retire from the sport and pur

Exercise 9.2 Calculate Earned Revenues 9.5 Gross Profit

Exercise 9.2 Calculate Earned Revenues Kirkland Theater sells season tickets for six events at a price of $180. In pricing the tickets, the planners assigned the leadoff event a value of $45 because the program was an expensive symphony orchestra. The last five events were priced equally; 1,200 season tickets were sold for

Business Combinations and Consolidation Promulgations

Many companies choose to combine or consolidate their companies when they see an opportunity for economic growth. This arrangement could be a joint venture, merger, combination, or a consolidation. While these terms seem similar, they have very different meanings when it comes to financial reporting. Companies will often choose

Creating the Lowest Overall Combined Tax Liability

Mary (Who is single with no dependants and who does not itemize) owns 100% of Beezer Tweezer Co, which is organized as a C-Corporation. Beezer Tweezer has $400,000 of taxable income in 2011 and Mary has $34,500 of outside taxable income before any wage compensation from Beezer Tweezer. Assuming reasonable compensation for Mary's

How to calculate return on investment (ROI)

Frazier Company's revenues are $300 on invested capital of $240. Expenses are currently 84% of sales. If Frazier Company can reduce its expenses to 70% of sales, return on investment will be ________.

Accounting Questions Pertaining to the CPA

A. Which of the following is not a purpose of the Sarbanes-Oxley Act? 1. Regulate the auditors of public companies 2. Ensure the adherence of relevant laws and regulations 3. Enhance corporate reporting and disclosure 4. Clarify sound corporate governance I would said that the answer here is 3 - corporate reporting and disc

Accounting Research Methodology

Please explain to me the accounting research methodologies of deductive, inductive and pragmatic research methods. Give me some examples to reinforce these methods.

Cash flows from operating, investing, and financing activities

The following information is available from Gray Co.'s accounting records for the year ended December 31, 2010 (amounts in million): Cash dividends declared and paid - $350 Retirement of bonds payable at maturity - $200 Interest and taxes paid - $150 Proceeds of common stock issued - $550 Proceeds from the sale of land -

Accounts Payable Calculations and Discounts

You work in the Accounts Payable Department in a small company. One of your duties is to determine payment dates for invoices to take advantage of discounts offered by vendors. You then file the invoices by payment date in a tickler file. You check the tickler file each day to see what invoices should be paid in the next couple

Overhead Cost Calculation for an Individual Lawyer

A lawyer allocates overhead costs based on his hours working with different clients. The lawyer expects to have $200,000 in overhead during the year and expects to work on clients' cases for 2,000 hours during the year. In addition, he wants to pay himself $50 per hour for working with clients. The lawyer, however, does not bill

Annual Increase in Income Realized

Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues. If this value could be reduced to 50 days, what annual increase in income would your firm realize if the increase in cash could be invested at 7.5 percent? A. $20.0 million B. $1.5 million C. $1.875 million D. Non

Forensic Accounting: Cash Disbursements

Cash Disbursements. Please respond to the following: -Estimate the effects of falsifying records, diverting cash to ghost employees, and duplicating expenses on a small, midsize, and large business. -Choose a small, midsize, or large business and put safeguards into place.

Computing EVA and Comparing Performance

A company that uses EVA reported the following results for 20X4 and 20X5 (in millions): ..............................................20X4............20X5 Pretax operating Income.......5,698...........5,700 Cash Taxes...........................1,676...........1,600 Average adjusted invested capital was $20,308 million in

Ending owner's equity of a business

2) Determine the ending owner's equity of a business having a beginning owner's equity of$10,227, additional investments of $4,533, withdrawals of $1,210, and revenue of $8,254, and expenses before adjustment amounted to $273. The adjustments totaled $6,291. Explain your answer (in 300 words). $____________

Penelope, Mark, and John Entity Selection

After 20+ years of working for other firms, Penelope (Enrolled Agent, age 41), Mark (CPA, age 43) and John (CVA, age 65) want to leave the firms they are currently employed by and become their own bosses. Penelope specializes in Taxes, Mark is the Auditor and John is a Business Valuation expert. There are so many options avai

Predetermined Overhead Rate and Applied Overhead

1. Amanda Bitsworth manufactures votive candles. Overhead is applied to products on the basis of direct labor hours. Last year, total overhead costs were expected to be $85,000. Actual overhead costs totaled $63,000 for 6,500 actual hours. At the end of the year, overhead was under-applied by $4,000. A) Calculate the predeter

Residual Income Long Beach Pharmaceutical Company

Long Beach Pharmaceutical Company has two divisions, which reported the following results for the most recent year. Division I Division II Income $900,000 $200,000 Average invested capital $6,000,000 $1,000,000 ROI

Lockhart Products Absorbtion: Versus Variable Costing

Lockhart Products produces a single product. During 2009 the company incurred the following costs: Variable product costs= $8/ per unit Variable period costs= $2/ per unit Total fixed product costs= $21,000 Total fixed period costs= $10,000 Lockhart had no units in beginning inventory. During 2009, 6,000 units were prod

Memo for CFO Indicating Outcome of Tax Changes

JIM currently uses the calendar year as its financial and tax annual accounting period. Because of the seasonality of sales, management wants to change to a fiscal year beginning April 1st through March 31st. You have been asked to review the tax law criteria for making this change. Write a memo to your CFO: - indicating th

Total Manufacturing Costs: Horatio Ltd.

Scenario: Horatio Ltd. uses job order costing to measure and track product costs. Horatio has determined that machine hours drive its manufacturing overhead costs. During the month of June, the following data were available for Product #80: Direct Labor 350 hours at $10 per hour Direct Materials= 40 square yards at $25/yard

Predetermined and Applied Overhead Rates: Ganzalez Inc.

Ganzalez, Inc., manufactures stereo speakers in two factories: one in Vandalia, Illinois and another in Modesto, California. The Vandalia factory uses DL$ for its overhead rate and the Modesto factory uses machine-hours (MHs) for its overhead rate. Information related to both plants for last year is presented below: Vandalia

Absorption & Contribution Statement: Mr. Rosen, Jokkmok Industries

Mr. Rosen is the manager of a division of Jokkmok Industries. He is one of several managers being considered for the position of CEO, as the current CEO is retiring in a year. All divisions use standard absorption costing. The division has the capacity to produce 50,000 units a quarter and quarterly fixed overhead amounts to

The Number of Pillows to Sell to Make a Certain Gross Profit

Questions 4-5 are based on the following information. Dreamland Pillow Company sells the "Old Softy" model for $20 each. One pillow requires two pounds of raw material and one hour of direct labor to manufacture. Raw material costs $3 per pound and direct production labor is paid $4 per hour. Fixed supervisory costs are $2,

Account/Business Analysis/Financial Reporting MCQs

UNIT-3 2) To compute FICA-OASDI tax to be withheld: A) use net earnings and Form W-4. B) use gross earnings, number of allowances, and marital status. C) use the net earnings and number of allowances. D) None of these answers are correct. 4) Wendy Nelson works 48 hours as a graphic designer. Compute her weekly pay.

Calculating Tax Liability, Marginal Rate, Effective Tax Rates

Williams Inc reports total net income of $130,000 during 2012. This includes $10,000 of income from 5.5% Orange County municipal bonds. Thus the Corporation's taxable income is equal to $120,000. a) What is William's tax liability for 2012? b) What are William's marginal, average and effective tax rates, respectively? c) I

Variance and Control Purposes

If it is to be most useful for control purposes, what variance should be reported to the supervisor responsible for the number of pounds of corn syrup used in the manufacture of candy bar? a) Raw material price variance, expressed in cents per pound. b) Raw material usage variance, expressed as a total cost for the month. c