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    Installment-Sales Method and Cost Recovery

    I am having problems completing the rest of the assignments similar to this problem. I just need to get in the ballpark. I will figure the rest out. I want to use this problem as a template for my test next week. I believe I will have several questions on the test for this problem. I am not comfortable with the concept. 15. (

    Accounting /business

    1. Calculating Ratios. Here are simplified financial statements of Phone Corporation from a recent year: INCOME STATEMENT INCOME STATEMENT (fi (figur gures in millions of dollars) es in millions of dollars) Net sales 13,193 Cost of goo

    Depreciation & book value of equipment

    Reds Co equipment account has a balance of $833,000 at 1/1/05. The related accumulated depreciation account was $239,000 on 12/31/05. During 2005, the following post-acquisition events involving the equipment occurred: a) allocated cost of the equipment used during 2005 in a systematic manner $94,000 b) equipment (A/D=

    Compute the Total Amounts Recorded

    On 11/3/05, Reds Co was the winning bidder at the local auction. The winning bid was $115,000 for a collection of stuff to be used in the business. The following values were obtained on this same date from an independent appraiser for the items won: Equipment $29,000 Furniture $30,000 Machines $46,000 Tools $35

    Valuation allowance for a tax loss

    What are some of the positive and negative evidence used to establish the need for a valuation allowance for a tax loss carryforward and what are the effects of the valuation allowance on the free cash flow forecast? I cant find any information on this anywhere. Please be specific with this. I need to understand it.

    EBIT-EPS analysis

    Reliable Gearing currently is all-equity financed. It has 10,000 share of equity outstanding, selling at $100 a share. The firm is considering a capital restructuring. The low-debt plan calls for a debt issue of $200,000 with the proceeds used to buy back stock. The high-debt plan would exchange $400,000 of debt for equity. The

    Split-off point & pay back period

    Use the following to answer question 89: Dowchow Company makes two products from a common input. Joint processing costs up to the split-off point total $38,400 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-of

    Throughput time

    Ricric Corporation has provided the following data for one of its products: Process time 3 days Queue time 4 days Inspection time 0.7 days Move time 0.3 days Wait time 9 days 73. The throughput time for this operation would be: A) 8 days. C) 17 days. B) 3 days. D) 7.7 days.

    The tax savings from the depreciation tax shield in year 4 would be

    72. Suppose a machine that costs $80,000 has a useful life of 10 years. Also suppose that depreciation on the machine is $8,000 for tax purposes in year 4. The tax rate is 40%. The tax savings from the depreciation tax shield in year 4 would be: A) $4,800 inflow. C) $4,800 outflow. B) $3,200 inflow. D) $3,200 outflow.

    Conversion costs

    55. Narver Company uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below: Percentage Unit complete Beginning work

    Overhead

    65. Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates: Dept. A Dept. B Direct labor cost $56,0

    Cash Outflow

    (Ignore income taxes in this problem.) The Finney Company is reviewing the possibility of remodeling one of its showrooms and buying some new equipment to improve sales operations. The remodeling would cost $120,000 now and the useful life of the project is 10 years. Additional working capital needed immediately for this project

    Unit costs

    54. Golden, Inc., has been manufacturing 5,000 units of Part 10541 which is used in one of its products. At this level of production, the unit product cost of Part 10541 is as follows: Direct materials $ 2 Direct labor $ 8 Variable manufacturing overh

    Overhead Costs

    53. Reddy Company has the following cost formulas for overhead: Cost Cost Formula Indirect materials $2,000 plus $0.40 per machine hour Maintenance $1,500 plus $0.60 per machine hour Machine setup

    Impact of discontinuance on net operating income

    Gata company plans to discontinue a department that has a $48,000 contribution margin and $96,000 of fixed costs. Of these fixed costs, $42,000 cannot be avoided. What would be the effect of this discontinuance on Gata's overall net operating income? A) Increase of $48,000 C) Increase of $6,000 B) Decrease

    Income and Profits

    Please help with the following problem. Use the following to answer questions 42-43: The following is Addison Corporation's contribution format income statement for last month: Sales $1,000,000 Less variable expenses 700,000 Contribution margin 300,000 Less fix

    Variance Analysis

    Please help with parts e, and k in the attached problem. --- The ABC Company has an automated production process, and production activity is quantified in terms of machine hours. It uses a standard-costing system. The annual static budget for 20x6 called for 6,000 units to be produced, requiring 30,000 machine hours. The

    Calculate the after-tax net cash outflow...

    31. A company had tax-deductible cash expenses of $650,000 last year and the tax rate was 30%. The after-tax net cash outflow for these expenses was: A) $195,000. C) $650,000. B) $455,000. D) $390,000.

    Net operating income for Green Company

    30. Green Company produces 1,000 parts per year, which are used in the assembly of one of its products. The unit product cost of these parts is: Variable manufacturing cost $12 Fixed manufacturing cost 9 Unit product cost $21 The part can be purchased from an outside supplier at $20 per unit. If the par

    Litton Company: Variable Manufacturing Overhead

    Use the following to answer question 24: The Litton Company has established standards as follows: Direct material 3 lbs. @ $4/lb. = $12 per unit Direct labor 2 hrs. @ $8/hr. = $16 per unit Variable manuf. Overhead 2 hrs. @ $5/hr. = $10 per unit Actual production figures for the past year are given below. The company rec

    Northern Division of Smith Co: Compute Residual income

    The Northern Division of the Smith Company had average operating assets totaling $150,000 last year. If the minimum required rate of return is 12%, and if last year's net operating income at Northern was $20,000, then the residual income for Northern last year was: A) $20,000. C) $5,000. B) $l8,000. D) $2,000.

    Calculate the EOQ/ELS for Raw Material LRM and Finished Product CLM

    You have just met with the Director of Purchasing. He has been attempting to reduce his costs by placing fewer, but larger, orders for raw materials. You suspect that his department's actions have been contributing to your organization's high DOS. Your assignment is to calculate the EOQ/ELS for the following two cases. Include

    Sales Tax Calculation

    Padres Co. sells goods subject to a state tax of 5%. State law requires that the amount of sales tax collected during the month be remitted by the end of the following month. At the time of a sale, Padres Co credits the sales account for both the amount of sales revenue and sales tax. Sales tax, when paid, is then debited to

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