A dialysis clinic offers two services hemiodialysis(HD) and peridoneal dialysis (PD). HD requires patients to come to the clinic three time a week to receive treatment. PD allows patients to administer their own treatment daily in their own homes. The profit analysis of the two services follows: Total HD PD Revenue
1. From the perspective of an accountant, what are your priorities about the accounting information system performance? How are these priorities related to the accounting internal control, the system components and the processes of developing the system? 2. What are the drawbacks of poorly documented systems?
1. Machain Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's cost formula for variable overhead cost is $2.90 per machine hour. The actual variable overhead cost for the month was $15,270. The original budget for the month was based on 5,000 machine hours. The compa
Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: a. Timber rights on a track of land were purchased for $720,000 on July 11. The stand of timber is estimated a 2,250,000 board feet. During the current year, 600,000 board feet of timber were
16. Yehle Inc. regularly uses material YS1E and currently has in stock 460 liters of the material for which it paid $2,530 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $4.55 per liter. New stocks of the material can be purchased on the open market for $5.45 per liter, bu
1.) A total of 6850 kilograms of raw material was purchased at a total cost of $21,920. The material price variance was $1370 favorable. The standard price per kilogram for the raw material must be: A) $0.20 B) $3.00 C) $3.20 D) $3.40 2.) Merle Corporation applies manufacturing overhead to products on the basis of s
Reported sales of $2.4 million. Variable costs are 80% of sales and fixed costs are $160,000. The firm has a 35% tax rate and interest expense is $120,000. If EPS is $3.75, what would the sales level have to change to before EPS would fall below $3.00? Answer: $2.2 million I need the calculation in order to comput
CVP Analysis - break even. The current selling price is $15 per unit. Variable expenses are $9 per units, and fixed expenses total $27,000 per month. A. Calculate the break even point expressed in terms of total sales dollars and sales volume.
Under what circumstances would a call on a bond be exercised by a corporation? What is the purpose of a deferred call?
Alex, a single taxpayer, has a salary of $100,000. He incurred & paid the following expenses during the year: Medical expenses $5000 Alimony $24,000 Charitable contribution $2000 Casualty loss (after $100 floor) $1000 Mortgage interest on personal residence $4500 State income taxes $4200 Mov
Bob, who is single had AGI of $400,000 in 2006. He incurred the following expenses & losses during the year. Medical expenses before 7.5% of AGI limitation $39,500 State & local income taxes $5,200 Real Estate taxes $4,400 Home mortgage interest
For 2006, Jon & Betty Smith file a joint return with AGI of $240,000. Their itemized deductions are the following: Medical expenses before AGI floor $23000 Casualty loss (not covered by insurance) before statutory floors $26,000 Interest on home mortgage $10,000 Interest on credit cards $800 Property taxes on home $13,000
Janet, (single) has the following items for 2006: - Salary $140000 - Home mortgage interest $10,000 A hurricane completely destroyed her duplex during the current year. She lived in half of the duplex & rented the other half. She paid $400,000 for the duplex & has taken $80,000 of cost recovery on the rental portion. It w
John Doeber borrowed $125,000 to buy a house. His loan cost was 11% and he promised o repay the loan in 15 equal annual payments. How much are the annual payments? A) $3,633 B) $9,250 C) $13,113 D) $17,383
Introduction to Managerial Accounting Review Questions Chapter 7 1. Which of the following might be included as a disbursement on a cash budget? A) A Above B) B Above C) C Above D) D Above 2. Thirty percent of Sharp Company's sales are for cash and 70% are on account. Sixty percent of the account sales
Multi-National Enterprises (MNE) operates in two countries, X and Y, with tax rates of 40% and 10%, respectively. Production costs are exactly the same in each country. The following summarizes the operating data for the two subsidiaries. (All data have been converted to dollars to simplify the example.) Subsidiary In Country
Cost Volume Profit Analysis You are considering the purchase of a hotel with 20 rooms. If you buy it ,the fixed costs are expected to be $200,000 per year. The variable costs of renting a room for one night include $20 for maid service and $5 for utilities and other costs. Assume no taxes. a If you expect to rent the rooms
Rose Bowl sells tickets for $100 per person and has a capacity of 100,000 people. Each person buys on average $20 of food and trinkets. The cost of providing the food, trinkets, guards, ticket saleperson and clean up is $10 per person. The fixed cost of renting the Rose Bowl and paying the teams is $10,000,000. Television pays $
7. When can the NPV and the IRR methods of evaluating investment projects provide contradictory results? (b) How can this arise? (c) Which method should then be used? Why? 15. In what ways the higher interest rates in the United States than abroad interfere with the international competitiveness of U.S. firms? 8. Problem 8
Given the following errors: The bank recorded a deposit of $200 as $2,000. The company's bookkeeper mistakenly recorded a deposit of $530 as $350. The company's bookkeeper mistakenly recorded a payment of $250 received from a customer as $25 on the bank deposit slip. The bank caught the error and made the deposit for the
Audry, age 38 and single, earned a salary of $59,000. She had interest income of $1,600 and had a $2,000 long-term capital loss from the sale of a stock investment. Audry incurred the following employment-related expenses during the year: Transportation $55,800 Meals $2,800 Lodging $4
During the current year, Jacob's personal residence, some of the contents, and his car were damaged or destroyed b a fire. Information with respect to the damaged and destroyed assets is as follows: Asset Adjusted Balance FMV Before FMV After Insurance Recovery Home $300,000 $400,000 $350,000
It has been a busy day. Three new clients have dropped off their tax information. Ann has just moved to California from Tennessee. You notice that she sold her home in Tennessee eight months after moving to California. She had owned the home for a little over three years. She rented the home after moving. Originally, she had
1. The cost of fire insurance for a manufacturing plant is generally considered to be a: a. product cost. b. period cost. c. variable cost. d. all of the above. 2. An opportunity cost is: a. the difference in total costs which results from selecting one alternative instead of another. b. the benefit forgone by selec
A seller generally records sales a the full invoice price, but the buyer often records purchases at net cost. Explain the logic of the buyer and seller recording the transaction at different amounts.
Bonnie purchased a new business asset (5-year property) on 03/10/06, at a cost of $20,000. She also purchased a new business asset (7-year property) on 11/20/06 at a cost of $13,000. Bonnie did not elect straight-line recovery. Determine the cost recovery deduction for 2006 these assets? David owns a warehouse that is used in
Calculate the after-tax cost of debt under each of the following conditions; A. Interest rate, 13 percent; tax rate, 0 percent B. Interest rate, 13 percent; tax rate, 20 percent C. Interest rate, 13 percent; tax rate, 35 percent.
Currently, your only funding for your business has come from your rich relative. What is the risk involved in this financing situation? What is the risk involved in other financing situations (e.g., selling bonds, issuing stock, venture capital, and debt and equity financing)? Using the Library and other Internet resources, i
Preparing a Flexible Budget (LOI) An incomplete flexible budget for overhead is given below for AutoPutz, Gmbh, a German company that owns and operates a large automatic carwash facility near Koln. The German currency is the euro, which is denoted by E. See attached file for full problem description. AUTOPUTZ, GMB
Foreign Earned income and housing exclusion. See attached file for full problem description.