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Accounting

The balance of a cash account

Your current assets consist of cash, accounts receivable, and inventory. Total current liabilities equal $200,000. The average collection period is 20 days on average daily credit sales of $2,500. The current ratio is 1.3 and the quick ratio is 0.625. What is the balance in the cash account? $75,000 $65,000

Accounting - Rich Novelty Company and Finney Inc.

Rich Novelty Company identified the following ctivities in its production and support operations. Classify each of these activities as either value-added or non-value added. a. machine setup d. moving work in process b. design engineering e. inspecting and testing c. storing inventory

Economic Order Quantity (EOQ), Ordering Costs, and Average Cycle Stock

Monthly demand for an inventory item currently averages 160 units. The annual carrying cost is $10 per unit. Ordering cost is $60 per order. This information applies to all of the questions on this page. Find the EOQ. Please show the formula (with values) you used. 2.Suppose instead of using the EOQ, we decide to use Q

New Hampshire Rafting Company

I recommended that my client open their rafting company in the state of New Hampshire. However, I first need some information on the following: 1. The type of insurance needed for a rafting business 2. The type of insurance needed for mobile home used in business. 3. Any other insurance issues that the client might find imp

Determine the pre determined overhead cost from the given data.

Determine the pre determined overhead cost from the given data. Winkle, Kotter, and Zale is a small law firm that contains 10 partners and 10 support persons. The firm employs a job-order costing system to accumulate costs chargeable to each client, and it is organized into two departments-the Research and Documents Department

Preparing ABC Analysis Report

Information attached in spreadsheet As You Like It Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to tr

concept of depreciation as used in accounting

28) Which of the following most accurately reflects the concept of depreciation as used in accounting? A. The process of charging the decline in value of an economic resource to income in the period in which the benefit occurred. B. An accounting concept that allocates the portion of an asset used up during the year to the

Earnings Quality

In our real life, the value of assets cannot be estimated perfectly because we can't be certain for the future cash flows that the asset generates and also we can't be certain for the discount rate. Because of the uncertainty for the future cash flows and the discount rate, we cannot complete the balance sheet if we do have the

Fundamental Accounting Model, Debit/Credit,T-Account

Need help answering questions and need example to get full understanding. 1. What is the fundamental accounting model? 2. Explain what debit and credit mean? 3. What is a journal entry? 4. What is a T-account? What is its purpose?

How are costs defined?

We learned about other types of cost classifications, such as differential costs, sunk costs, and opportunity costs. How are these types of costs defined? How could these concepts be used in managerial decision making? Please provide an example.

Accounts Payable of Symphony Stores

Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system. Debit Credit Accounts receivable-trade

Earnings Trends and normative theory/education

Evaluate how research and normative theory impacts accounting education today and the likely impact that more research may have on the accounting profession. While research evidence indicates that historical cost valuation methods are often irrelevant discuss why the accounting profession has a difficult time moving away fr

Operating income-Fabre Company

Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12. Costs for last year were as follows: Direct materials 25,000 Direct labor 35,000 Variable factory overhead 12,000 Fixed factory overhead 37,000 Variable selling expense 9,000 Fixed selling expense 7,500 Fixed ad

Rising Healthcare Costs

The portion of gross domestic product that is created by the health care industry is growing faster than any other sector. What are three reasons for the unique increase in health care costs? Why are these factors contributing to the rising cost of health care?

Zinc Faucets, Flower City Cartridges, Changing Standards

Changing Standards The empirical evidence reveals that firms change their standard prices and standard quantities during the fiscal year. Most firms have the following policy, ?We set our standards before the fiscal year begins and we NEVER, NEVER change them during the year (except when we have to).? Required: a. Eva

Division A of Hoover Inc. transfers its product to Division B. Calculate the minimum transfer price division A should charge for internal transfers and the maximum price division B is willing to pay.

Division A of Hoover Inc. transfers its product to Division B. Division B can either buy the item internally or externally (cost = $75 each). Division A has just completed its annual cost update as follows: Direct material $25.00 Direct labor 18.75 Variable manufacturing overhead 6.25 Fixed manufacturing overhead

Equivalent Units of Production of Soft N' Dry Towel and Tissue Company

The Converting Department of Soft N' Dry Towel and Tissue Company had 920 units in work in process at the beginning of the period, which were 75% complete. During the period, 16,200 units were completed and transferred to the Packing Department. There were 960 units in process at the end of the period, which were 25% complete. D

Classroom-Based Learning Experience

Think about a best classroom-based learning experience and list the things that made it such a good experience. Then, think about of a worst classroom-based experience and list the factors that made it such a bad experience.

An Analysis of Business Simulations

Do an Internet search to identify the types of games and business simulations that are available. Select one and provide a description and an analysis of it. Discuss the learning content objectives.

Calculating Net Income: A Formula Analysis

Please help me understand and explain this problem: NI = [U * (P-VCu)] - FC Example: We own a small ice cream shop. What are the variables in this equation? How is variable cost defined and what might be some variable costs for our ice cream shop? How is fixed costs defined and what might be some fixed costs for our i

The Magrath Company

Magrath Company has an operating cycle of less than one year and provides credit terms for all of its customers, On April 1, 2011, the comany factored, without recourse, some of its accounts receivable. Magrath transferred the receivables to a financial institution, and will have no further accociation with the receivables. M

Access the IASB home page on the Internet

Access the IASB home page on the Internet. The web address is www.iasb.org. Answer the following question. 1. Describe the mission of the IASB? 2. The IASB has how many board members? 3. Who is the current chairman of the IASB? 4. Where is the IASB located?

Taxpayer A sells a parcel of undeveloped real property to B

Taxpayer A sells a parcel of undeveloped real property to Taxpayer B for $100,000. A receives a promissory note with a face amount of $100,000 bearing adequate interest. However, due to the solvency of B, the note has a value at the time of receipt of only $60,000. When must Taxpayer A recognize income if A does not use the inst

Marta and Luka: gain or loss

Marta and Luka exchanged like-kind equipment under I.R.C. Sec. 1031 on December 31, 2010. Marta gave up equipment worth $100,000, with an adjusted basis of $60,000. Luke gave up equipment worth $70,000, with an adjusted basis of $65,000; as well as stock worth $30,000 that had a basis of $15,000. a. Calculate Marta's realized

Real Property or Personal Property

How does the state of New Hampshire define real property? How does they define personal property? Does a mobile home owned by a client qualify as real property or personal property for each state? What difference to the client would it be if it were classified as either?

FASB Codification System

- What is the FASB Codification System and what is its purpose? - What are the nine content areas located in the FASB Codification System? What types of items are located under each content area?

What is the impact on the net income, total profit margin and cash flow?

Brandywine Homecare, a not-for-profit business, had revenues of 12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was 1.5 million. All revenues collected in cash during the year and all expenses other than depreciation were paid in cash. Suppose the change had halved

Shirt Company purchase new cutting machine: maximum spend

Shirt Company wants to purchase a new cutting machine for its sewing plant. The investment is expected to generate annual cash inflows of $300,000. The required rate of return is 12% and the current machine is expected to last for four years. What is the maximum dollar amount Shirt Company would be willing to spend for the ma

Swiss Cleaning Manufacturing ROI residual income divisions

26. THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 26 THROUGH 28. The Swiss Cleaning Manufacturing Company, Inc. manufactures home cleaning products. The company has two divisions, Bleach and Cleanser. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The fo