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    Calculating Collection Float

    Lock Boxes. Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She forecasts that 400 payments a day will be made to lock boxes with an average payment size of $2,000. The bank's charge for operating the lock boxes is $.40 a check. The interest rate is .015 percent per day.

    Should the company invest money in one or two of these projects? Which ones?

    Here is the project: Spend $200,000 to increase plant capacity for Product B. The new capacity will cause profits to increase by $200,000 per year in the first year. The sales forecast is estimated to be 80% accurate. The other project is Upgrade the MIS system for the company. There is a 100% certainty I will have manpower s

    The Pacific Company Manufactures a Single Product

    Use the following to answer question 22: The Pacific Company manufactures a single product. The following data relate to the year just completed: Variable cost per unit: Production $43 Selling and administrative $15 Fixed costs in total: Production $145,000 Selling and adminis

    Overhead Budgeting

    Use the following to answer questions 12-13: The Culver Company is preparing its Manufacturing Overhead Budget for the third quarter of the year. Budgeted variable factory overhead is $3.00 per unit produced; budgeted fixed factory overhead is $75,000 per month, with $16,000 of this amount being factory depreciation. 12. I

    Variance Analysis

    Spacely Sprockets 2001 Budget Executive Summary File: SGMU M:MSMFin642Spacely-Budget.xls Last Revised: 12/17/01 Prepared by: Tom Gruber General Budget calls for reasonable increases in sales, prices and expenses except for labor. We have to keep overtime under control to return to profitability. Sales Set re

    Variance Analysis

    Westport Furniture 2001 Budget Executive Summary General To hit Mr. Westports profit goal of $70000, our 2001 budget is very aggressive in expense reductions (especially in direct labor) and somewhat optimistic on revenue given the pressure from plastic tables. Margin widens 5% points from 28% to 33%. Sales We have fo

    Death Spiral for Insurance Companies Profitability

    An insurance company has the following profitability analysis of its services: Life Insurance Auto Insurance Home Insurance Revenues $5,000,000 $10,000,000 $3,000,000 Commissions (1,000,000) (2,000,000) (600,000) Payments (3,000,000) (7,300,000) (2,000,000) Fixed Costs (500,000)

    Choosing Performance Measures

    The president of the Canby Insurance Company has just read an article on the balanced scorecard. A company has a balanced scorecard when there is a set of performance measures that reflect the diverse interests and goals of all the stakeholders (shareholders, customers, employees, and society) of the organization. Presently, Can

    Indirect cost rate per truck trip budgeted costs

    14-19 Fruit juice, inc. processes orange juice as its East Miami plant and grapefruit juice at its West Miami plant. It purchases oranges and grapefruit from growers' cooperatives in the Orlando area. It owns its own trucking fleet. It takes the same mileage to go to each Miami plant from Orlando. The trucking fleet is run as a

    Walters Company: incremental monthly revenue, accounting for joint costs

    This problem is titled Processing Further. # 2 Walters Company is considering producing 120,000 pounds of paperclips and 140,000 pounds of staples each month from their current production of grade A and Grade B wiring. The following are the expenditures to date: Jan 1 $100,000 Bulk steel purchase Jan 2 - Feb 15 $150,0

    Accounting Equation Chart

    The balance sheet at 12/31/04 and 12/31/05 show the following: Current Assets Long Term Assets C Liabilities LT Liabilities Owners Equity 04 ? ? $360,000 ? ? 05 ? $750,000 ? ?

    Stock valuation: Company ABC

    Company ABC's earnings and dividends will grow at 6% during the next five years. Its growth will stop after year 5. In year 6 and afterward, it will pay out all earnings as dividends. Assume next year's EPS is $10 and the dividend is $5 and the market capitalization rate is 9%. What is ABC's stock price?

    Solving a residual income equation (what is the right formula)?

    A google search has left me still confused as to what the "right" residual income equation is: http://swoba.hhs.se/hastba/abs/hastba1999_010.htm Help please: kindly write all the CALCULATIONS IN an EXCEL SPREADSHEET, so I can follow and better understand exactly what goes into a firm price's calcuation and a residual income c

    Liabliity of Accounting firms that go bottm up in 1 yr after clean audit.

    Due to frequency of corporate scandals in the US, there have been many efforts toward restructuring. Evaluate proposal of: Accounting firms should be liable to pay stock holders if they give a company a clean audit and it goes bankrupt in one year. Opinion with refrences to back up stated opinion if possible.

    Capitalization Vs. Expensing

    What are the fundamental issues surrounding capitalization vs expensing? What approach does management seem to prefer and why? Which approach do you think auditors seem to prefer?

    Accounting Information Systems

    The Financial Accounting Standards Board (FASB) indicated that the traditional accounting information system design actually constrained standard setting in FASB Statement 95, "A Statement of Cash Flows." The Board received 450 comment letters, most from bank lending officers-accounting information users-who favored requiring th

    Tax Loss Carry Forward

    The Clark Corporation desires to expand. It is considering a cash purchase of Kent Enterprises for $3 million. Kent has a $700,000 tax loss carry forward that could be used immediately by the Clark Corporation, which is paying taxes at the rate of 30%. Kent will provide the $420, 000 per year in cash flow (after tax income pl

    Make or Buy

    The Minnetonka Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis. After considerable research, a cross-country ski line has been developed. Because of the c

    Planning and Budgeting

    Andre has asked you to evaluate his business, Andre's Hair Stylling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on al

    Net income and Return assets

    Shiloh Networking is considering expansion into a new product line. Assets to support expansion will cost $500,000. It is estimated that Shiloh can generate $1,200,000 in annual sales, with a 6 percent profit margin. What would net income and return on assets (investment) be for the year?

    Overhead under Job-Order Costing in a Service Organization

    PPGV provides auditing services to midmarket clients. PPGV developed the following estimates for the current year. A. Compute the predetermined overhead rate based on: 1. direct labor hours 2. direct labor cost B. Compute the amount of overhead that would have been applied to each of these jobs using various overhead rate

    Make or Buy

    Using Excel goal seek and solver please help me with this problem The Minnetonka Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis. After considerable

    Overhead Problems

    Equations and theories behind solving for overhead for companies Tortolla Company is a manufacturing firm that uses a job-order costing system. The company uses machine hours to apply overhead to work in process. On January 1, Tortolla's management estimated that it would incur $700,000 in manufacturing overhead costs an