Instructions: a. The following is the scenario you should consider when answering: General Electric Corporation and Tyco International are both classified as "conglomerates" (having many diversified business lines). General Electric has pursued a conservative growth strategy by focusing on being the number one or number
Define: 0. Merchandise Inventory?net increase 1. Retained Earnings?debit for stock dividends distributed 2. Common Stock?credit for issuance at par for cash 3. Bonds Payable?debit for redemption of bonds 4. Office Supplies?net decrease 5. Accounts Receivable?net decrease 6. Retained Earnings?debit for n
See attached file for full problem description. 0. The statement that reports a firm's major cash inflows and outflows for a period is the 1-2. What are the two alternative methods of reporting operating activities in the statement of cash flows? 1. 2. 3-8. Indicate the section of the statement of cash flows (i
For the following lists of costs, indicate by the appropriate letter which category of activities each cost applies to : unit level (U), batch level (B), product line (P), or facility support (F): a. Machine fine-tuning adjustment cost (required after the production of each unit) b. Salary of vice president of finance c.
A company sells lawnmowers for $895 each. The variable cost per lawnmower is $520. The company's monthly fixed costs are $84,500. Using the C-V-P equation, compute the amount of profit the company will have for a month in which the company sells 375 lawnmowers.
1-CA11-3 Situation1 The controller's point would be valid if the depreciation method in use during the period of inactivity is the activity method. By this method, depreciation is based on the output produced or input measure. Since during the strike period the equipment was idle, there would then be no output of the equipment
See attached file for full problem description. 1. Today, Leila Lee, the manager of Technology Abounds, needs to make a decision on whether or not to outsource the Widget department. She needs to analyze the income statement and balance sheets for Technology Abounds' department to discover whether or not the Widget Departmen
A majority interest taxable year is the taxable year of one or more partners that own more than 50 percent of partnership capital and profits. If a partnership does not have a majority interest taxable year, a principal partner taxable year, or a natural business year, it must use the taxable year resulting in the least aggre
1. Unreasonable compensation can be reclassified as a nondeductible dividend payment to the shareholder. 2. The corporation cannot deduct as a business expense interest payments to creditors who are also shareholders. 3. The IRS determines that compensation is unreasonable by comparing how much is paid by similar corpo
VOLUNTARY SECTOR MUST BE VIGILANT IN GUARDING ITS INDEPENDENCE Posted on 03/12/2003 A call for the voluntary sector to maintain its independence from Government and preserve its freedom to experiment and be creative comes today from the Chief Executive of the Carnegie UK Trust, John Naylor. Writing in the Trust's Annual Rep
B&T Auto Parts Store. See attached file for full problem description. 1. Why is the lack of a partnership agreement causing such problems for Terry and Bob? 2. Discuss the validity of the two positions: a) 50-50 sharing b) 1/3-2/3 sharing and the factors that help decide which is the correct position. 3. There was a c
1. A characteristic of a fixed asset is that it is: a. intangible b. used in the operations of a business c. held for sale in the ordinary course of the business d. not currently used in the business but held for future use 2. Which of the following is included in the cost of constructing a building? a. interest on
1. Do you think that credits and other tax incentives actually cause companies to change economic behavior to utilize these tax provisions? Are they important to the economy? 2. Is the idea of an Alternative Minimum Tax (AMT) fair? Why or why not? Has the AMT worked in the manner in which it was originally intended?
E11-1 Castlevania Corporation purchased a truck at eh beginning of 2007 for $42,000 The truck is estimated to have a salvage value of $2,000 and a useful life of 160,000 miles. It was driven 23,000 miles in 2007 and 31,000 miles in 2008. Compute depreciation expense for 2007 and 2008. E11-3 (depreciation computation S
E10-18 (Nonmonetary Exchanges) Cannondlae Company purchased an electric wax melter on April 30,2008, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase . List price of new melter............................................. ..15,800 Cash paid ........................
2. With the seeming multitude of cost classifications, how does an organization precisely identify which costs belong where? How does an organization determine how costs behave? Consider payroll costs?what really drives them? Are there different drivers for different employees?
Assume a firm has declared a 20% stock dividend on its 1 million shares of outstanding $5 par value common stock. If the market value of the stock at the date of the stock dividend is $14 per share and the retained earnings account balance before the stock dividend was $7,600,000, what is the retained earnings account balance
1. Mr.Trevor expects to accumulate assets valued at $3 million during his lifetime and wishes to leave his estate to his six children. Based on family history, he expects to live until 2040 at age 75. a. So that his estate will pay zero estate tax after the unified credit, at what age will Mr. Trevor need to begin making annua
The most recently published statement of consolidated earnings of National Industries, Inc., appears as follows: NATIONAL INDUSTRIES, INC. Statement of Consolidated Earnings For the Year Ended March 31, 2004 Net Sales $38,041,200 Other revenue
Sidman's products' stock is currently selling for $60 per share. The firm is expected to earn $5.40 per share this year and to pay a year-end dividend of $3.60. a. If investors require a 9 percent return what rate of growth must be expected for Sidman? b. If Sidman reinvests earnings in projects with an average return eq
Although many business entities either prefer or are required to use the accrual method of accounting, there are certain businesses where cash basis works best. Give four examples when cash basis is an appropriate method of accounting.
Financial statement information about four different companies is as follows. Karma Molly McCain Bodie Company Company Company Company January 1, 2006 Assets $ 89,000 $110,000 (g) $170,000 Liabilities
P9-4) Gross Profit Method: David Hasselholf Company lost most of its inventory in a fire in December just before the year end physical inventory was taken. Corporate records disclose the following. Inventory ......................80000 Purchases.....................280000 Purchases return..............28000
Jim Bo's currently has annual cash revenues of $240,000 and annual operating expenses of $185,000 including $35,000 in depreciation. The firm's marginal tax rate is 40 percent. A new cutting machine can be purchased for $120,000 that will increase revenues by $50,000 per year while operating expenses would increase to $205,000,
Need help with answering the following two questions: 1) What are the security concerns with wireless and microwave technology? 2) Is a cashless society possible? Practical? Desirable? Please explain in detail.
An ABC team at Drugs 'R Us, a pharmaceutical company, identified these data for a typical month: Activity Activity Cost in a Volume in a Activity/Resource Cost-Driver Base Typical Month Typical Month 1. Unit Level 1.1 Acquire and use material Number of units $ 60,000
Our cost per jet in terms of materials is 1.00 per and the labor is .50. Our total annual overhead is estimated to be $20000 and our overhead seems to be related to the number of jets we produce. Can you work me up the total costs for our order of 70 jets? Which system is a better choice between a job or a process cost accou
You have finally decided that this is the year that you purchase that exotic car (Aston Martin Vanquish (007's car), Porsche Carrerra GT, Bentley Continental etc...etc.). But your spouse (Salma Hayak or Brad Pitt depending on who you are) insists that you must decide on the maximum purchase price you can afford before you ever
I am interested in finding information on strategies that a corporation could develop in order to meet the three year financial plan to double it sales.
Mr. Tucker owns investment land (690,000 fmv and $228,000 adjusted basis) that he is interested in selling. Several prospective purchasers have offered to pay cash, but Mr. Tucker wants to avoid recognizing his entire gain in the year of sale. Accordingly, he is considering selling the land to the Tucker Family Corporation in re