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. Hair shampoo used on all
The man-hour estimate for test and evaluation was based on using expert opinion to come up with optimistic, pessimistic and most likely positions. This resulted in a triangular distribution with a minimum estimate of 425 hours, a most likely estimate of 500 hours, and an expected maximum of no more than 650 hours. Calculate the
When the present value analysis of a proposed investment results in an indication the proposal has a rate of return greater than the cost of capital, the investment may not be made because: a. the quantitive analysis indicates that it should not be made b. management assessment of qualitatitve factors overrides the quantitiv
The sensitivity and importance of payroll and payroll information cannot be overstated. The managing and protecting of this information deserves and has the attention of any number of managers within an organization. Most everyone has experienced or has heard of situations where either payroll information has been stolen or some
Under IFRS, a sponsoring company must consolidate a special purpose entity (SPE): a) when the company is the primary beneficiary of SPE b) only if the company has a > 50% interest in theSPE c) if the company controls the SPE d) when the company has voting rights that are disproportionate to its economic interest
Whether recognized or unrecognized in an entity's financial statements, disclosure of the fair values of the entity's financial instruments is required when: It is practicable to / Aggregated fair values estimate those values / are material to the entity a no
1)What is the difference between two types of line-item budgeting approaches: incremental budgeting and zero-based budgeting? Which of the two approaches is more widely used by governments? Which do you think is more beneficial in developing realistic budgets? 2)"The sole objective of budgeting in a governmental entity is to
Under the disclosure provisions of SFAS No.123, the estimated stock option expense for 2006 would be $15,500 for W Co.. When the company records this expense: A) retained earnings account has no effect B) the equity on b/s has no effect C) the total assets increase by 15,500 D) the capital decreases by 15,500
I need help with the attached question. Thank you! Which one is not correct in the context of tax accounting: Deferred tax liability might result when tax expense on an income statement is less than tax payment based on the tax code. Corporate income tax is an expense, not a distribution of the profits to the government
Please help with the attached question. To reduce agency cost, accounting should provide the information for management stewardship. Then, which item can be more directly related to the management stewardship information? A) goodwill impairment loss B) projected benefit obligation C) employee stock option expense D) gai
Which one is the least possible item in MD&A? A) market sales trend B) discussion for the accounting policy change C) detail information for the executive comparison D) the effect of oil price on the firm's performance.
1. E16-4 Sell or process further? Mizzou Mining Company mines an iron ore called Alpha. During the month of December, 400,000 tons of Alpha were mined and processed at a cost of $742,500. As the Alpha ore is mined, it is processed into Delta and Pi, where 60% of the Alpha output becomes Delta and 40% becomes Pi. Each produ
1) Describe this Basic Type of Business Formation: Partnership 2) Explain the Following Consequences of the type of Business Organization: - Tax Implications - Legal Implications - Accounting Implications, such as: SOX and FASB.
Based on financial statements from three differernt companies, why is Google a good company to invest in?
Which of the following statements correctly describes the proper accounting for non-monetary exchanges that are deemed to have commercial substance? a) It defers any gains and losses b) It defers losses to the extent of any gains c) It recognizes gains and losses immediately d) It defers gains and recognizes losses immedia
What is the Definition of the "High Quality of Earnings"? Why is this important in an organization? What is the Definition of "Sustainable Income"?
Please see attachment. 1. Polly Enterprises manufactures lamps that normally sell for $75 each. There are 300 defective lamps in inventory, which cost $55 each to manufacture. These defective units can be sold as-is for $20 each, or they can be processed further for a cost of $45 each and then sold for the normal selling pric
Consider the following scenario: The Ski Pro 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 h
The control environment sets the tone of the organization. It is the foundation for all other components of internal control. It provides discipline and structure. Control environment factors include the integrity, ethical values, and competence of the company's people. Personnel policies and practices also come under the co
Intrepid Inc. declared a $1,000,000 cash dividend. It currently has 15,000 shares of 6%, $100 par value cumulative preferred stock outstanding. It is one year in arrears on its preferred stock. How much cash will Intrepid distribute to the common stockholders? a. $910,000 b. $1,000,000 c. $180,000 d. $820,000
A fire occurred in March 2014 at Lincoln Lumber, Inc., causing damage to nearby properties. By May of 2014, no claims had yet been asserted against Lincoln. However, Lincoln's management and legal counsel concluded that it was reasonably possible that Lincoln would be held responsible for negligence, and that $1,000,000 would be
Donald Corporation owns machinery with a book value of $670,000. It is estimated that the machinery will generate future cash flows of $560,000. The machinery has a fair value of $520,000. Donald should recognize a loss on impairment of a. $150,000 b. $110,000 c. $40,000 d. $ -0-
On April 1, 2004, Norcross Corporation purchased a new machine for $550,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $25,000. The company has recorded monthly depreciation using the straight-line method. On August 1, 2013, the machine was sold for
1. On February 10, 2013, Rims Corporation purchased a parcel of land as a factory site for $250,000. An old building on the property was demolished, and construction began on a new building which was completed on September 30, 2013. Salvaged materials resulting from the demolition were sold for $10,000. Costs incurred during thi
Prepare a comprehensive checklist for evaluating internal controls for a company (real or fictitious). Apply the checklist to outline phases of the control evaluation "Comprehensive" means a complete checklist. You must include company-level controls, significant processes, major classes of transactions, and significant accoun
Good Co. had a net loss of $75,000 from merchandising operations in 2010. Jane owns Good Co. and works 20 hours a week in the business. She has a large amount of income from other sources and is in the 35% marginal tax bracket. Would Jane's tax situation be better if Good Co. were a proprietorship or a C corporation?
Bob Smith purchased 30 shares of XYZ stock on April 30, 2010 for $210, and on September 1, 2010, he purchased 90 additional shares for $900. On November 8, 2010, he sold 48 shares, which could not be specifically identified, for $576, and on December 15, 2010, he sold another 25 shares for $50. What is his recognized gain or los
3. Mathew Murphy, single, sold his home that he had owned for 20 years for $670,000. He purchased it for $110,000 and made $40,000 of capital improvements on the home during his time of ownership. (a) How much gain is excluded? How much is recognized? (b) If Mathew purchased another home for $420,000, how much is excluded an
The following absorption costing income statement and additional data are available from the accounting records of Bernon Co. for the month ended May 31, 2007. During the accounting period, 17,000 units were manufactured and sold at a price of $60 per unit. There were no beginning inventories.
Define the challenges of teamwork when all participants do not contribute? Please provide two references.