Explore BrainMass

# Accounting

### Identify the bottleneck

Deb Samson is the owner of a company that produces glass products, suh as shower doors, table tops, and specialty windows for recreational vehicles. The process involves cutting glass into the proper shape, smoothing the edges, heat treating, and packaging. The cutting process is automated and very rapid; two minutes are requi

### Incremental Analysis

If an incremental analysis looks like this: Reject Accept Net Income Order Order Increase(Decrease) Revenues Costs Net Income How do I go about solving this problem? Do I need to worry about Margin per unit/dollars? Carter Co

### EBIT and EPS Calculations for Mattel

If Mattel engaged in a capital acquisition program that expected to improve EBIT by 10% in 2004. How do I calculate the EBIT/EPS for debt financing. How do I calculate the EBIT/EPS for equity financing. Based on the above calculations what would be the best capital structure. Please explain and let me know where to f

### Accounting problems

Determine the missing amounts... Please see attached for full question.

### Elasticity of demand: Making cookies example

Can you help me get started with this assignment? Income increase from 13000 to 17000. Cookies demand increased by 15% and the demand for peanut butter chips decreased by 10%. I have to calculate the income demand for the cookies and the peanut butter chips. How do I begin to solve this problem?

### Transfer pricing

SportCo, Inc. is a multidivisional company that produces and sells athletic equipment. Division 1 produces components for a variety of products, while Division 2 assembles the components and packages the finished product. Both divisions are free to buy and sell internally or externally. For a particular soccer ball, the cost

### Textron Industries: residual income, ROI, evaluate a plant expansion opportunity

Lakeesha Roberts is a successful division manager for Textron Industries. Her division's ROI currently is 22%. Roberts is evaluating a plant expansion opportunity that is expected to produce an annual income of \$500,000 and require an investment of \$3,000,000. The corporation's cost of capital is 12%. a. If Roberts' perfo

### Evaluating a Business: Andre's Hair Styling

Andre has asked you to evaluate his business, Andre's Hair Styling. 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. Assume that the only

### EBIT and Leverage

EBIT and Leverage. Big Apple, Inc., has no debt outstanding and a total market value of \$80,000. Earnings before interest and taxes, EBIT, are projected to be \$10,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be

### Duval Corporation: Calculating Higher EPS and Break-Even EBIT

Break-Even EBIT. Duval Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Duval would have 600,000 shares of stock outstanding. Under Plan II, there would be 300,000 shares of stock outstanding and \$10 million in debt outstanding. The interest rat

### Calculating the Coefficient of Variation and Standard Deviation

Please help with the following problems. Provide step by step calculations for each. Year Stock A's Returns (rA) Stock B's Returns (rB) 2000 -18% 14.5 2001 33 21.8 2002 15 30.5 2003 -0.5

### Bodger Ltd: calculate break-even point, profit levels

Bodger Ltd. has been in the business of buying and selling washing machines for some years, but has decided to look at the possiblity of manufacturing its own brand... (a) Calculate, to the nearest whole number, the break-even point in units and in value for options 2 and 3. (b)Calculate which of the three options is most

### Financing foreign operations - tax considerations

Please work problems; formula and showing how to solve problem is most important (so I can see how to solve similar problems). Thanks Suppose Navistar's Canadian subsidiary sells 1,500 trucks monthly to the French affiliate at a transfer price of \$27,000 per unit. Assume that the Canadian and French marginal tax rates on co

### 1. What is the adjusted cash balance in the September 30 bank reconciliation? 2. The book value of an asset in the plant and equipment category is: 3. Which of the following best describes the relationship between revenue and retained earnings? 4. If the return on total assets is substantially above the cost of borrowing, common stockholders will: 5. The presence of fixed costs in manufacturing overhead causes the actual amount of manufacturing overhead per unit of output to vary depending on the actual production volume attained.

The Cash account in the ledger of Home-Builders Co. shows a balance of \$16,526 at September 30. The bank statement, however, shows a balance of \$20,900 at the same date. The only reconciling items consist of a bank service charge of \$6, a large number of outstanding checks totaling \$5,930, and a deposit in transit. 1. Refer t

### Taxes; Life Insurance; Family Maintenance Fund; Needs Approach

Sue and Tom Wright are assistant professors at the local university. They each take home about \$40,000 per year after taxes. Sue is 37 years of age, and Tom is 35. Their two children, Mike and Karen, are 13 and 11. Were either one to die, they estimate that the remaining family members would need about 75% of the present comb

### Calculate the Standard and Actual Quantities and Variances

On May 1, 2003 Goodman Company began the manufacture of a new mechanical device known as "Dandy'. The company installed cost system in accounting for manufacturing costs. The standard cost for a unit of "Dandy' are as follows: Raw Materials 6 lbs @ \$1 per lb. \$6.00 DL 1 hour @ \$4/ hr 4.00 OH

### Compute: DM, DL, Variable OH, and Fixed OH variances

The controller of a company which manufactures home-permanent kits has just received the following final production reports and cost figures for the month of May: Standard Costs: DM: 4 ounces @ \$.50/ounce------------------------------- \$2.00 DL: 1/10 of an hour @ \$7.50/hour-------------------------- .75 VOH: 1/10 * \$15

### Compute DM, DL and OH (4-WAY).

Mayol Company produces widgets with following standard costs per unit: DM (3 lb @ 70/lb)---- \$2.10 DL (2 hrs @ \$3.50/hrs)---\$7.00 Variable OH (2 hrs @ \$.50/hr)---1.00 Fixed OH (2 hours @ \$2.50/hr)---5.00 Normal monthly production is 7,100 units. During August, the company manufactured 6,950 units. 25,000 lbs of DM wer

### Juno, Inc and Mayo, Inc: Return on Investment, return on Sales; Capital Turnover;

Use the following to answer questions 27-29. The following information regarding Juno, Inc. is available: SALES \$1,000,000 COST OF GOODS SOLD 600,000 OPERATING EXPENSES 300,000 OPERATING INCO

### Delta Co: Operating Income; Cash Flow Increase; Variable Costing Procedures

Delta Co. follows a policy of allocating all common costs equally among its profit centers. A partial responsibility income statement for a typical month is shown below: Profit Profit Profit

1. In the year-end financial statements, the Manufacturing Overhead account should have: a. A debit balance, representing overhead on hand and available for use. b. A credit balance, representing accumulated depreciation and amounts owed to suppliers of overhead items. c. Either a debit or a credit balance, depending upon

### BUSINES ANALYSIS/ACCOUNTING

Use the following to answer questions 1-4: Shown below are selected data from the balance sheet of Ames Hardware, a small retail store (dollar amounts are in thousands): Cash \$20 Accounts receivable 100 Inventory 195 Total assets 450 Current liabilities 150 Non-current liabilities 120 1. Refer to the above data. Ames' d

1. Newby Corporation's 2000 net income is smaller than net cash flow from operating activities. Which of the following would not be an explanation of why net income is smaller than net cash flow from operating activities? a. Newby paid dividends to shareholders during 2000. b. Newby's accounts payable increased during 2000.

1. Tandem Corporation issued 200,000 shares of \$2 par value capital stock at date of incorporation for cash at a price of \$7 per share. During the first year of operations, the company earned \$80,000 and declared a dividend of \$25,000. At the end of this first year of operations, the balance of the Common Stock account is:

### Tax factors

Using the case below, please help with the following questions: What tax factors are relevant to Whelan Pharmaceuticlas in deciding where to manufacture Varex? Which country is favored in site selection? What are the non tax factors? Should the sourcing committee choose Ireland or continental Europe? Where should Whe

Use the following to answer questions 1-2. The following information is from the manufacturing budget and budgeted financial statements of Pinecove Industries: Direct materials inventory, 1/1 \$104,000 Direct materials inventory, 12/31 128,000 Direct materials budgeted for use during year 400,000 Accounts payable to supplie

### Business analysis: Baker Company, Boggs Corporation, Stellar Corporation

1. Baker Company manufactures and sells 20,000 units of product X per month. Each unit of product X sells for \$15 and has a contribution margin of \$4. If product X is discontinued, \$56,000 in fixed monthly overhead costs would be eliminated and there would be no effect on the sales volume of Baker Company's other products. I