Balance Sheet Preparation From the following data, prepare a classified balance sheet for Simon Company at December 31, 2006. Spreadsheet Accounts payable $62,500 Accounts receivable 123,000 Buildings 418,500 Owners' equity, 1/1/06 210,000 Cash 179,750 Distributions to owners during 2006 21,750 S
I have an Accounting II problem that is asking me to estimate the cost of the merchandise inventory of San Lucas Company on December 31 by the gross profit method. The data shows only the cost column and I need to figure out the retail column. However, I do not know how to figure out the retail side. One I get the first coupl
It is payday at ET Ice Cream and you need to ensure that the correct payroll and tax adjustments are made to the company books. In a typical payroll entry taxes are withheld from employees pay and must be paid to various state agencies. Identify the payroll and tax adjustments to be made. Identify the agencies to which ta
Wynne Corp. and its divisions are engaged solely in manufacturing operations. The following data (consistent with prior years' data) pertain to the industries in which operations were conducted for the year ended December 31, 2004. Revenue Profit Assets 1 2/
A) Price elasticity of demand is telling us about the slope of the demand curve. Price elasticity of demand is asking: Is the demand curve really steep or even vertical (inelastic) where a large price change will have very little effect on the quantity demanded? Is the demand curve really flat or horizontal (elastic) where a
Using the following accounting elements: assets, liabilities, owners' equity, capital stock, retained earnings, revenues, expenses, and dividends. Which of these elements are increased by a debit entry, and which are increased by a credit entry? Give a transaction for each item that would result in a net increase in its balance
QED Electronics Company had the following transactions during April while conducting its television and stereo repair business. 1. A new repair truck was purchased for $19,000. 2. Parts with a cost of $1,600 were received and used during April. 3. Service revenue for the month was $33,400, but only $20,500 was cash sales.
Determine the amount of total assets, current assets, and noncurrent assets at the end of the period, given the following data: Current liability, ending balance $50,000 Current ratio, ending 1:6:1 Owners' equity, beginning balance $120,000 Inventory, beginning balance $ 35,000 Purchases during the period
A firm sells 25,000 widgets annually that it purchases from a widget supplier for $10 each. It costs the firm $62.50 in administrative costs to place an order for the widgets and, on the average, costs $0.50 in carrying costs to maintain a widget in inventory. What is the optimal quantity of widgets to be purchased in ea
Please help with the following problem. When using discounted cash flow analysis to value an asset, explain why it is important to measure the risk of the asset and to associate an expected return with that risk measure.
John Right, an analyst with Stock Pickers Inc., claims: "It is not worth my time to develop detailed forecasts of sales growth, profit margins, et cetera, to make earnings projections. I can be almost as accurate, at virtually no cost, using the random walk model to forecast earnings." What is the random walk model? Do you agree
Which of the following types of businesses do you expect to show a high of degree of seasonality in quarterly earnings? Explain why. Supermarket Pharmaceutical Company Software Company Auto Manufacturer Clothing Retailer
How does government involvement in standard setting affect investor confidence? This paper answers this question with a thorough history on the accounting standards setting process.
In your own words, based on experience in business, add your explanation. Thanks. A) Are microeconomic conditions influenced a lot or a little by the macroeconomic conditions? And visa versa? B) Do you think that managers manage differently if they are at a for-profit verses and not-for-profit company? C) Some t
1) Design a simulation of a business situation by preparing a table based on the Monte Carlo model for machine breakdown repair. 2) How does the simulation work and how was the data for the probabilty distribution obtained?
Dolce Refinery, Inc. processes coconuts. Coconuts are processed in batches. A batch of coconuts costs $60 to buy from farmers and $13 to crush in the company's plant. Two intermediate products, coconut fiber and coconut oil, emerge from the crushing process. The coconut fiber can be sold as is for $29 or processed further for $1
Greene Enterprises prepares monthly departmental reports in an effort to control its operating costs. Each department has a manager to whom the report is addressed and who is held responsible for the operating results in his or her department. The report made to Department D for October follows: Budgeted Actual Sales
Watson Company pays a bonus to any of its five division managers who increase their percentage of income to sales over that of the year before. The manager of Division A is displeased because of the results of operations of the line for the current year. The division showed a decrease in net income percentage, as follows:
One basic investing tenet is that prices appreciate to reflect the earnings power of a stock. Fast growing stocks should therefore outperform slow growing stocks. Suppose we classify stocks into 2 categories today: high growth stocks and low growth stocks. We can then form two groups of stocks that have the same beta - a grou
JDS & Associate is a local public accounting firm. Its job costing system has a sing cost category (i.e. professional labor) and a single indirect cost pool (i.e. Audit Support Services) where all other operating costs are accumulated. Professional accountants on each job allocate both direct and indirect costs to individual job
Draft a memo to upper management detailing the benefits available to Accounting employees. Include health insurance, time off, retirement/savings plan, and one other work/life benefit. Explain to management the primary strategic consideration involved in managing the proposed benefits program. Identify an additional strategic
PLEASE REFER TO WORD.DOC FOR PROPERLY FORMATTED PROBLEM AND SET OF QUESTIONS Gigantic, Inc. manufactures three products for the computer industry: Gizmoz (product G): annual sales, 8,000 units Thangz (product T): annual sales, 15,000 units Whatziz (product W): annual sales, 4,000 units The company uses a tradit
Tribeca Company manufactures a variety of products. The following data pertain to the company's operations over the last two years: Variable costing net operating income, last year $82,700 Variable costing net operating income, this year $87,800 Increase in ending inventory, last year 900 Decrease
Part A. Gorvin Industries makes 100,000 units per year of a part called a BINC gasket for use in one of its products. Data concerning the unit production costs of the BINC gasket follow: Direct materials $0.15 Direct labor 0.10 Variable manufacturing overhead 0.13 Fixe
ABC Co. at the end of 2007, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 750,000 Estimated litigation expense 1,000,000
Has the global business environment created needs that can no longer be addressed by the existing concept framework?
Many industries have excess capacity. Among them are the airline and telecommunications industries, as well as several manufacturing industries, such as steel, aluminum, and aircraft manufacturing. Some management accountants argue that absorption costing provides an incentive to continue producing goods for inventory,
ABC Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2008 $ 900,000 Tax exempt interest (75,000) Originating tempo
What are the pros and cons of a S corporation vs. a C corporation.
You recently received the following note from the production supervisor of the company where you serve as controller. "I don't understand these crazy variable-overhead efficiency variances. My employees are very careful in their use of electricity and manufacturing supplies, and we use very little indirect labor. What are