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:
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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,
Accounting Problems - ABC Corporation prepared the following reconciliation for its first year of operations
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
The following information describes a product expected to be produced and sold by Hadley Company: Required: (a) Calculate the contribution margin ratio. (b) Calculate the break-even point in dollar sales. (c) What dollar amount of sales would be necessary to achieve a pretax income of $120,000?
Please help answer the following and provide references: 1. Can anyone explain why pension accounting is totally at the whim of the corporation? Given that they are free to select their anticipated growth on investment, it seems this figure could be jockeyed to suit the balance sheet. 2. I would like to have more clari
You just graduated from XYZ University. You have applied for a job with the prestigious Abacus Management Consulting Corp. There are many qualified candidates; in order to narrow down the field the firm has assigned each applicant the following hypothetical case: Required: Supply the requested comments in each of the fo
8. Hoover Industries Cash Flow (in millions) CASH RECEIVED FROM: Customers $ 1,800 Interest on investments 200 Sale of land 5,100 Sale of capital stock 600 Issuance of debt securities 2,000 CASH PAID FOR: Interest on debt $ 300 Income tax 80 Debt principal reduction 1,500 Purchase of equipment 3,000 P
How does absorption costing differ from variable costing? Why does it matter? If cost accounting serves internal purposes more than external, why do ethics matter in the development of the system? In job-order costing, how would an organization develop and evaluate standard costs? Why is materiality an issue in cost acc
Monrad Corporation uses variable costing for internal reporting purposes. Its preadjusted trial balance for the year ended December 31 shows: Cost of goods sold (at variable cost) $750,000 Finished goods inventory (at variable cost) 75,000 Nonvariable product costs 462,000
How would the following events (reported this year) affect your forecasts of a firm's future net income? An asset write-down A merger or acquisition The sale of a major division The initiation of dividend payments
On January 1,2006 , Entriste Co. purchased at par 12% bonds having a maturity value of $300,000. They are dated on Jan 1, 2006, and mature Jan 1. 2011, with interest receivable Dec 31st of each year. The bonds are classified in the held to maturity category. a) prepare journal entry at the date of the bond purchase b) pr
See attached file for full problem description. The following calendar year information about the Tahoma Corporation is available on December 31: The company applies overhead on the basis of 125% of direct labor costs. Calculate the amount of over- or underapplied overhead.
Burtis Company produces a number of products. In 2002, the selling price of Product A, whose sales are normally 10,000 units per year, was calculated as follows: Unit Costs Direct Material Costs.............................$ 4.00 Direct labor costs............................
What's the difference between physical presence nexus and economic nexus?
This post contains a formatted MS Excel file containing an example of the calculations Goodwill and Other Intangible Asset valuation.
According to SFAS 142, "Goodwill and Other Intangible Assets," if no legal, regulatory, contractual, competitive, economic, or other factors limit the life of an intangible asset, the asset's cost is allocated to expense over which of the following? a.20 years. b.20 years with an annual impairment review. c.infinitely d.
Can one of you help me please answer the following question: See attached 1- Intel reports the following information on its stock options incentive programs in its December 31, 2001 financial statement footnotes The company's stock option plans are accounted for under the intrinsic value recognition and measurement princ
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occuring during the ski season and in the summer. Month
On July 1, 2004, an interest payment date, $60,000 of ABC Co. bonds were converted into 1,200 shares of ABC Co. common stock each having a par value of $45 and a market value of $54. There is $2,400 unamortized discount on the bonds. Using the book value method, Risen would record a. no change in paid-in capital in excess of
In the following situations, indicate whether the taxpayer qualifies as a head of household. a. Allen is divorced from his wife. He maintains a household for himself and his dependent mother. b. Beth is divorced from her husband. She maintains a home for herself and supports an elderly aunt who lives in a retirement home.
What is the information commonly used to assess the creditworthiness of a client?