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    Accounting help

    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. Assume that the only se

    Centel Corporation: disclosure in annual report. Is it a liability?

    The following appeared in Centel Corporation's annual report: "In December, an investor in the Argo group Inc (TAGI) filed suit against a subsidiary of the company for damages from alleged breach of fiduciary duty and negligence related to the bankruptcy of a subsidiary of TAGI. The company cannot predict the ultimate outco

    Accounting for market values

    Accounting for market values. Mrs. Rosewood recently approached her bank manager and requested a loan for her business, Flowers Ltd. After viewing Flowers' financial information, the bank manager made the following estimates concerning Flowers, Ltd: Unrecorded Goodwill $300,000 The market value of inventories, capital asset

    Common Stock Holder's Liquidation

    White and Wong, Inc. has had financial difficulty and is being liquidated by the Federal Bankruptcy Court. The firm has a liquidation value of $1,000,000 --- $400,000 from the fixed assets that served as collateral for the mortgage bonds and $600,000 from all other assets (all prior claims have been satisfied). The firm's curr

    ABC Costing Problem

    A company produces two types of leather purses: standard and handcrafted Both purses use equipment for cutting and stitching. The equipment also has the capability of creating standard designs. The standard purses use only these standard designs. They are all of the same size to accommodate the design features of the equipme

    Miller-Orr Model

    In the Miller-Orr Model, which is NOT true ______ When the cash balance falls to zero, the amount coverted from maretable securities to cash is the amount represented by the upper limit or When the cash balance reaches the upper limit, an amount equal to the return point minus the upper limit is converted to marketabl

    A Weakness of the Percent-of-Sales Method

    A weakness of the percent-of-sales method to preparing a proforma income statement is ________ (a) the assumption that the value of certain accounts can be forced to take on desired levels (b) the assumption that the firm faces linear total revenue and total operating cost functions (c) the assumption that the firm's p

    Earnings History

    A firm has had the following earnings history over the last 5 years: year Earnings per share 1999 $2.50 1998 $2.00 1997 $1.75 1996 $1.25 1995

    Long-term debt

    The inexpensive nature of long-term debt in a firm's capital structure is due to the fact that _________ the equity holders are the true owners of the firm, equity capital has a fixed return, creditors have a higher position in the priority of claims, or dividend payments are tax-deductible I believe - creditors have a

    Remaining earnings after satisfying oblications

    After satisfying oblications to creditors, the government, and preferred stockholders, any remaining earnings will most likely be allocated to any of the following "EXCEPT" _________ common shareholders as cash dividends, common shareholders as stock dividends, retained by the firm for future investment, or a combination

    Dividend Tax Rate Reduction

    What are the changes that Bush enacted to how dividends are taxed and how will this policy affect corporate profitability?

    Risk-adjusted discount rates

    In adjusting for risk, which of the following is - "TRUE" - about the risk adjusted discount rate and/or the certainly equivalent methods _____________ (a) The risk-adjusted discount rate allows for the use of varied costs of capital, enabling the large multi-divisional firm to incorporate differing levels of divisional ri

    Risk-free rates are noted.

    The amount by which the required discount rate exceeds the risk-free rate is called ______ the opportunity cost, the risk premium, the risk equivalent, or the excess risk

    Accounting scenario/ I am having trouble 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 research, a cross-country ski line has been developed. Because of the c

    depreciation values tax effects

    A Corporation is selling an existing asset for $1,700. The asset, when purchased, cost $10,000, was being depreciated under MACRS using a five-year recovery period, and has been depreciated for four full years. If the assumed tax rate is 40 percent on the ordinary income and capital gains, the tax effect of this transaction is

    Absorption Versus Variable

    1. What is this company's break even sales point (in units)? 2. What does this company's absorption costing income statement look like? 3. What does this company's variable costing income statement look like? *(For company's numbers as they apply to the questions please see attachment)

    Why market price changes with interest rate

    The market price of outstanding issues often varies from par (face value) because ______ the maturity data has changed, the coupon rate has changed, the market rate of interest has changed, or old bonds sell for less than new bonds I believe - the market rate of interest has changed is the answer - please advise answer

    Preferred Stock

    Preferred Stock is valued as if it were _____ a fixed income obligation, a bond, a perpetuity, or a common stock I believe the answer is - a fixed income obligation - please advise answer & why - thanks!

    Risk-Free Rate Adjustment

    A change in the risk-free rate would NOT be due to ___________ an international trade embargo, a change in Federal Reserve policy, foriegn competition in the firm's product market area, or none of these

    Providing a large endowment for the ballet

    A person plans to make a one-time endowment that would provide the ballet with $150,000 per year into perpetuity. The rate of interest is expected to be 5 percent for all future time periods. How large must the endowment be ____ $300,000, $3,000,000, $750,000, or $1,428,571 Please answer & show work - thanks!

    Accounting-Break-even analysis+

    I need to better understand how to calculate these questions and find a break-even analysis. Lava Rocks has fixed cost of $75,000 per month. Each model has the following identifiable sales price and variable material costs respectively. Kona $6,500 $2,600 Hilo $3,900 $1,950 Paris $4,200 $1,890 When Lava Rocks sells a b

    OD Problem

    OD Practice Problem - Johnson and Johnson's Life for Life. ** (See attachment for full background and questions) **

    Growth Rate of Dividends

    The first year someone owned stock they received $1.71 per share and in the fifth year they received $2.89 per share. What was the growth rate of the dividends over the five year period _____ 7 %, 14%, 12%, or 5%

    Total Asset Turnover

    A firm with a total asset turnover lower than the industry standard and a current ratio which meets the industry standard may have ______. excessive fixed assets, excessive inventory, excessive accounts receivable, or excessive debt please advise answer & why - thanks!

    Net Profit & Cash Flow

    A firm has just ended the calendar year making a sale in the amount of $150,000 of merchandise purchased during the year at a total cost of $112,500. Although the firm paid full for the merchandise during the year, it has yet to collect at year end from the customer. The net profit and cash flow for the year are _____ $0

    ROI & ROS for Randall Company Distribution

    The following applies to both parts: Randall Company makes & distributes outdoor play equipment. Last year its sales were $12,000,000, nte income was $3,000,000, and the assets used were $15,000,000. 1) Asset turnover, the productivity component of return on investment, is ____ 20%, 80%, 25%, or 125% 2) Ret

    Formula AP-SP

    The best label for formula (AP - SP) AQ is the _____. use variance, price variance, total cost variance, or efficiency variance please advise answer & why - thanks!

    Formula AQ-SQ

    The best label for formula (AQ-SQ) SP is the _____. use variance, price variance, total cost variance, or wage rate variance please advise answer & why - thanks!

    Favorable Efficiency Variance

    The favorable efficiency variance for direct labor inidicates that _____. a lower wage rate than expected was paid for direct labor, a higher wage rate than expected was paid for dircet labor, less direct labor hours were used during production than expected for actual output, or more direct labor hours were used during pr

    Capacity Constraint

    In the service sector, ________ rather than machines usually represent(s) the capacity constraint, which underscores the importance of budgeting even in nonmanufacturing organizations. people, knowledge, familiarity with processes, or potential for sales

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