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    What is the utilization of the repair shop?

    A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each, and only 400 trucks were repaired. What is the utilization of

    Calculate the efficiency of a repair shop.

    A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each, and only 400 trucks were repaired. What is the efficiency of

    Accounting Profit :Break -even

    Consider the following information for a big-screen television distributor: Sales price per TV $1,500 Variable costs per TV $1,100 Fixed costs per year $120,000 Depreciation per year $20,000 Tax rate 35% How many units must the distributor sell in a given year to break-even (in terms of accounti

    Investments - Net Income/Cash Flow

    The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. Cash flows are in $ thousands and the corporate tax rate is 34 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the

    Sales to achieve target income

    How would you calculate total sales to achieve a given net income using fixed cost and a variable cost which is expressed as a percentage of sales? i.e.: Fixed cost $35,000 Variable cost are 30% of sales (Are we to assume sale = 100%?) Net Income $50,000

    Net income and breakeven point calculation

    What should a company expect their net income to be if their units sold increases by 10,000 units given the following information? What would their breakeven sales point be? Sold 60,000 units this year. Sales $120,000 Direct Labor 6,000 Indirect Labor

    Financial Accounting

    True/False 1. Accounts receivable are the result of cash and credit sales. 2. Under the direct write-off method, no attempt is made to match bad debts expense to sales revenues in the same accounting period. 3. Allowance for Doubtful Accounts is debited under the direct write-off meth

    Calculation of Overhead Cost

    If given a total manufacturing cost of $130,000. Direct labor cost was $40,000, indirect labor cost was $20,000. Raw materials were purchased at $35,000, if the begining raw materials inventory was $0 and the ending raw materials inventory was $5,000, what is the overhead cost?

    Accounting for a Patent

    In early January 2005, Lerner Corporation applied for a patent, incurring legal costs of $50,000. In January 2006, Lerner incurred $9,000 of legal fees in a successful defense of its patent. Instructions (a) Compute 2005 amortization, 12/31/05 carrying value, 2006 amortization, and 12/31/06 carrying value if the company amor

    Bonds Payable

    23. Entries for bonds payable. (20 points) Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Titus Co.: March 1 Issued $800,000 face value Titus Co. second mortgage, 8% bonds for $872,160, including accrued interest. Interest is payable semiannually on

    Accounting Information Systems

    How can data modeling tools such as an E-R diagram help identify inconsistencies early on in the data modeling process? How can the data modeling process encourage accountants and other users to get more involved in database design? What techniques might an auditor employ to evaluate the reliability and integrity of an accoun

    Calculating Pre-Tax Net Profit

    A reliable source has told you Johnson Company's stock price will increase from where it is now at $22.50 at an undetermined point over the coming 5 months. For $310.25 now you could buy a 5-month call option which lets you buy 100 shares at $25/share. Suppose you purchase that option for $310.25 and Johnson's stock price does i

    Linear Programming: The Simplex Method

    Captain John's Yachts, Inc., located in Fort Lauderdale, FL, rents three types of oceangoing boats: sailboats, cabin cruisers, and Captain Jon's favorite, the luxury yachts. Captain John advertises his boats with his famous "you rent - we pilot" slogan, which means that they company supplies the captain and crew for each rente

    Oversight Board

    The Associated Press article, "Oversight Board a Way to Report Wrongdoing, "states:" Corporate oversight boards, created amid the accounting scandals, are encouraging people to come forward with information by making it easier for company employees and others to report tips and complaints" (p. 1). 1. Present an argument in fa

    Manergerial Accounting - compares and contrasts

    1. Compare and contrast a cost-plus pricing strategy to a target pricing strategy. 2. Discuss the effects of cost behavior on selection of appropriate cost drivers. 3. What is the basic premise behind activity-based costing systems? What is an activity? Describe how ABC systems work. 4. Describe the budgeting proce

    Accounting: Journal Entries

    A: Prepare the journal entry to record each separate transaction. (a) On March 1, DVD Co. issues 44,500 shares of $4 par value common stock for $255,000 cash. (b) On April 1, GT Co. issues no-par value common stock for $50,000 cash. (c) On April 6, MTV issues 2,000 shares of $20 par value common stock for $35,000 of inventory

    Accounting Equations and Methods

    1. Discuss the expansion of the basic accounting equation to include revenues and expenses. Discuss and illustrate how this expanded accounting equation stays in balance after every transaction and whether the rigorous rules of accounting necessarily mean there is only one numerical answer. Explain. 2. Describe the accounting

    Case Analysis?Time and Billing System

    File contains a paper which answers such questions as whether and automated time and billing system can drastically improve a company's efficacy with regard to its record keeping as well as the timeliness and accuracy of delivery, which are the most pressing, and challenging problems at present for a professional service agency.

    Calculating Income for Acme Consulting

    Acme Consulting has the following operating data for last year. Revenues $175,000 Supplies Expense $45,000 Salaries $70,000 Rent Expense $1,500 Accounts Payable $8,000 Administrative Expense $6,000 Cash collections from prior year's sales $10,000 What is income before tax?

    Accounting Problems - variable costs, journal entries and break even points

    Du Page Company manufactures a nutrient, Everlife, through two manufacturing processes: Blending and Packaging. All materials are entered at the beginning of each process. On August 1, 2005, inventories consisted of Raw Materials $5,000, Work in Process?Blending $0, Work in Process?Packaging $3,945, and Finished Goods $7,500. Th

    Transferring Land to Corporation: Tax Impacts & Security

    Several entrepreneurs plan to form a corporation for purposes of constructing a housing development. Randall will be contributing the land for the project and wants more security than shareholder status provides. He is contemplating two possibilities: receive corporate bonds for his land, or take out a mortgage on the land b

    Tax Issues for Incorporation to provide some ownership to daughter Margaret.

    Nancy and her daughter, Margaret, have been working together in a business called The Floral Shop. Nancy formed the business in 1990 as a sole proprietorship. Because Nancy was well known and liked in the community before starting the business, the business has been very successful. It currently has assets with a fair market va

    Tax Issues for Bonuses in a Seasonal Business

    In January, Don and Steve each invested $ 100,000 of cash to form a corporation to conduct business as a retail golf equipment store. On January 5, they paid Bill, an attorney, to draft the corporate charter, file the necessary forms with the state, and write the bylaws. They leased a building and began to acquire inventory,

    Tax Effect of Capital Loss Claim

    5. Kathy owns all the stock in Eagle Corporation. Eagle Corporation reports on a calendar year basis. During the 2006, Kathy incurs a $ 25,000 long term capital loss, and Eagle Corporation incurs a $ 25,000 long term capital loss. Compare the treatment of these transactions on the tax returns of Kathy and Eagle.

    Individual Income for S Corporation

    3. Harry is the sole shareholder of Purple Corporation, which is an S Corporation. Purple earned net operating income of $ 60,000 during the year and had a net capital loss of $ 8,000. Harry withdrew $ 30,000 of the profit from the corporation. How much income must Harry report on his individual income tax return for the year?

    Sole Proprietorship and C Corporation

    Lucille owns a sole proprietorship and Mabel is the sole shareholder of a C corporation. Each business sustained a $20,000 loss and a $7,000 capital loss for the year. How will these losses affect the taxable income of the two owners when they file their individual income tax returns?

    Individual Income from a C Corporation

    1. George owns a sole proprietorship and Mike is the sole shareholder of a C Corporation. During 2006 both businesses make a profit of $ 75,000 and neither owner withdraws any funds from his business during 2006. How much income must George and Mike report on their individual income tax returns for year 2006?

    Expenditures and Encumbrances

    What is the difference between expenditures and encumbrances? What are the differences between reserve for encumbrances and encumbrances?

    Business problem :Activity based costing

    Chapter 22: (Exercises 22-2, and 22-3) Allocating Unit-Level, Batch-Level, and Product Line Manufacturing, Overhead Costs, Solar Salt Company has two divisions. Gross margin computations for these two divisions for 2006 are given below. Agricultural Products

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