H & R Manufacturing Corporation provided the following cost data for its most recent fiscal year end. The company manufactured 100,000 units of its product during the past fiscal year. Beginning work-in-process inventory $70,000 Ending work-in-process inventory 90,000 Beginning finished goods inventory 124,000 Endin
See attached file for full problem description. E1: The decisions that follow were made by the management of Shanahan Shoe Company. Indicate whether each decision pertains primarily to (a) cash flow management, (b) profitability management, (c) choice of inventory system, or (d) control of merchandise operations. 1. Decide
The following data is available for Osman Corp. for the current year: Beginning inventory of goods in process 12,000 units 60% completed Ending inventory of goods in process 18,000 units 30% completed Units completed and transferred to finished goods during the year 144,000 units (se
A chain of appliance stores, APP Corporation, purchases inventory with a net price of $500,000 each day. The company purchases the inventory under the credit terms of 2/15, net 40. APP always takes the discount, but takes the full 15 days to pay its bills. What is the average accounts payable for APP?
E19-4 (Three Differences, Compute Taxable Income, Entry for Taxes) Zurich Company reports pretax financial income of $70,000 for 2004. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $16,000. 2
Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: Per Unit Data Selling price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overh
Assume that Rf = 5 percent and Km = 10.5 percent. Compute Kj for the following betas. 1. 0.6 2. 1.3 3. 1.9
See the attached file. The Riverston plant produces sheet metal shell casings for electronic equipment for one large customer. The shell casings are manufactured on a computerized, numerically controlled (NC) machine that cuts, drills, and bends the metal to form the shell casings for the electronic equipment. Two different s
The manufacturing division of Coltson Inc. produces and sells 100,000 widgets. Half of the widgets are sold externally at $150 per unit, and the other half are sold internally at variable manufacturing costs plus 10 percent. Coltson uses variable costing to evaluate the manufacturing division. The following summarizes the cos
Gibson & Sons, an appliance manufacturer, computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $1,200,000, but 25 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $2.40. How many uni
Mr. Katz is in the widget business. He currently sells 2 million widgets a year at $4 each. His variable cost to produce the widgets is $3 per unit, and he has $1,500,000 in fixed costs. His sales-to-assets ratio is four times, and 40 percent of his assets are financed with 9 percent debt, with the balance financed by common st
Information concerning Haerhpin Corporation's intangibles is as follows: 1: On January 1, 2004, Haerhpin signed an agreement to operate as a franchisee of Hsian copy services Inc. for initial franchise fees of #75,000. Of this amount, $15,000 was paid when the agreement was signed, and the balance is payable in 4 annual payme
MESMER ANALYTIC, A BIOTECHNOLOGY FIRM, FLOATED AN INITIAL PUBLIC OFFERING OF 2,000,000 SHARES AT A PRICE OF $5.00 PER SHARE. THE FIRM'S OWNER HELD 60 PERCENT OF THE COMPANY'S $1.00 PAR VALUE AUTHORIZED AND ISSUED STOCK FOLLOWING THE PUBLIC OFFERING. ONE MONTH AFTER THE IPO, THE FIRM'S BOARD OF DIRECTORS DECLARED A ONE-TIME DIV
1. Which of the following is not an example of a decision or informed judgment that a potential investor would make from accounting information? A) Future profitability based on past profitability. B) Probability of success of a new product development. C) A forecast of dividend
Hasterson has a five-day workweek and pays salaries of $70,000 each Friday. 1. Make the adjusting entry required on July 31, assuming that August 1 falls on a Wednesday. 2. Make the entry to pay the salaries on August 3. (Could you check the attachment to see if I have entered the journal correctly?)
1. I am not sure as how to explain the problems (put into words) 2. I am not sure if I had to do any graphing. Can you help me? Part A The market portfolio is assumed to be composed of two securities, Investment X and Y as shown below. Determine based on the information given the Average return, Standard Deviation and
(See attached file for full problem description) --- EXERCISE 2-10 Varying Predetermined Overhead Rates (LO3, LO5) Javadi Company makes a composting bin that is subject to wide seasonal variations in demand. Unit Product costs are computed on a quarterly basis by dividing each quarter's manufacturing costs ( materials, labo
Prepare the adjusting entry in journal form: Attached --- E3: Green Mountain Company of Montpelier, Vermont, publishes a monthly magazine featuring local restaurant reviews and upcoming social, cultural, and sporting events. Subscribers pay for subscriptions either one year or two years in advance. Cash received from subscri
Circle the best answer: 7. Equipment was purchased for $100,000 and has a book value of $44,000 and a depreciable cost of $76,000. The estimated salvage value is a. $44,000. b. $56,000. c. $32,000. d. $24,000. 8. Anway Company has total cash register receipts of $7,980. This total includes a 5% sales tax. The
Prepare the necessary journal entries to record the following transactions in 2003 for Shula Company. March 1 Exchanged old store equipment and $80,000 cash for new store equipment. The old store equipment originally cost $96,000 and had a book value of $64,000 on the date of exchange. The old store equipment had a fair marke
What questions might you want answered to assist you believing that estimation of warranty liability is a science and not a number that management can estimate? What do you think a company should do if the new product is having greater than anticipated warranty expenses?
P12-3 (Accounting for Franchise, Patents, and Trade Name) Information concerning Haerhpin Corporation's intangible assets is as follows. 1. On January 1, 2004, Haerhpin signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $75,000. Of this amount, $15,000 was paid when the
Highland Cable Company is considering an expansion of its facilities. Its current income statement is as follows: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000,000 Less: Variable expense (50% of sales) . . . . . . . 2,000,000 Fixed expense . . . . . . . . . . . . . . . . . . . . . . .... 1,500
A6). Set up T account and record each transaction. Determine the balance of the account. May 2 - Norman started a computer programming business; Norman's programming Service, by investing $5,000 May 5 - Purchased a computer for $2,500 in cash May 7 - purchased supplies on credit for $300 May 19 - received cash for programm
Case Study#2 The XYZ Company Katharine Rally is the vice president of operations for the XYZ Company. She oversees operations at a plant that manufactures components for hydraulic systems. Katharine is concerned about the plant's present production capability. She has reduced the decision situation to three alternatives
The fundamental accounting equation can be applied to your personal finances. For each of the following transactions, show how the accounting equation would be kept in balance. Example: Paid for semester's tuition (decrease assets: cash account; decrease owners' equity: expense account increases). 1. Took out a school lo
(See attached file for full problem description) Using excel, please solve the following: Frieda Millstone and her family live in Roanoke, VA and they are planning an auto vacation across Virginia, their ultimate destination being Washington DC. The family has developed the following network of possible routes and cities
A production analyst evaluates different levels of automation for quality control inspection of whole-kernel cut corn. Option 1 is to assign a number of employees along the conveyor belt to inspect the corn kernels manually as they go by and pick out small and off-colored kernels. Option 2 involves using fewer employees who only
The following are summary cash flow statements for three roughly equal size companies. A B C Cash flow from operating activities $100 $(100) $(100) Cash flow from investing activitie
Many corporate acquisitions result in losses to the acquiring firms' stockholders. Accordingly, why do firms purchase other corporations? Are they simply paying too much for the acquired corporation? A co-worker asks your opinion. Specifically state the reasons for your argument.