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Accounting

Golden Gate Construction Associates

Golden Gate Construction Associates, a real estate developer and building contractor in San Francisco, has two sources of long-term capital: debt and equity. The cost to Golden Gate of issuing debt is the after-tax cost of the interest payments on the debt, taking into account the fact that the interest payments are tax deducti

Suburban Lifestyles ROI residual income

Suburban Lifestyles, Inc. has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers' lots. Suburban Lifestyles expanded into the precut housing market when it acquired Fairmont Company, one of its suppliers. In this market, various types of lumber are precut into

division's ROI

Explain three ways a Division manager could improve the division's ROI. Use numbers to illustrate these possibilities.

This post addresses Closet Inc. and passive activity losses.

Scenario: Let's say for example, Closet, Inc. was a closely held C corporation involved in the real estate rental business in 2010. The company had $3.5 million in passive activity losses. In 2011, Closet, Inc. elected to be taxed as an S corporation, and the company sold a number of rental properties. Can Closet, Inc. c

Sarah Goldberg

Sarah Goldberg, the company's CEO, has been concerned about the consistent losses with their newest location and is considering elminating it. Should Big Kahuna elminate the Park Lane location? Why or why not? Answer A. The Park Lane location should be kept open because its unavoidable expenses would cause the company to e

Common sizing horizontal vertical analysis: questions

QUESTIONS ____Which of the categories shows the largest percentage increase from the base period to 2011? ____Which of the categories shows the smallest percentage increase from the base period to 2011? ____What overall assessment can be made from the trend analysis regarding Gleason Company? ____If the current trend conti

Price variance

The Elm Institute makes portable tents for hikers. Their tents have a standard materials usage of 4 yards of cloth per tent at $7.00 per yard. During the month, 2,400 yards of cloth were purchased at $7.30 per yard. Production for the month produced 550 tents and used 2,100 yards of cloth. Please compute the materials price vari

Profit

Laurie Kahala just received an opportunity to lease and install a self-photo booth at a local mall. The booth would allow people to sit down, swipe their credit cards and take a set of ten high quality photos in one sitting. The combined lease (some payable to the mall, and the rest to company that owns the photo booth) would b

What is the target price per unit?

Travis Corporation sells a product for $100 per unit. Its market share is 32 percent. The market share can be increased to 40 percent with a reduction in price to $87. The product is currently earning a profit of $23 per unit. The president of Travis Corporation feels that the company needs to maintain the same profit level per

Units Currently Sold: Travis Corporation

Travis Corporation sells a product for $100 per unit. Its market share is 32 percent. The market share can be increased to 40 percent with a reduction in price to $87. The product is currently earning a profit of $23 per unit. The president of Travis Corporation feels that the company needs to maintain the same profit level per

Legality of Oral Agreements

I need some help with the following scenario: Gray Fabricating Co. and Pine Corp agreed orally that Pine would custom manufature a processor for Gray at a price of $80,000. After Pine completed the work at a cost of $60,000, Gray notified Pine that the processor was no longer needed. Pine is holding the processor and has req

Factors Affecting Break-Even Point

Discuss how the following affects the break-even point: - Increase or decrease in unit sales price - Increase or decrease in variable cost per unit - Increase or decrease in fixed costs

Practice Problem for Accounting

1. Marcus Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $141.30 per unit. Sales Volume (units) 6,000 7,000 Cost of Sales $347,400 $405,300 Selling & Admi

Planning a Sample for a Test of Subsequent Cash Receipts

Which of the following would be a consideration in planning a sample for a test of subsequent cash receipts? a) preliminary judgments about materiality levels b) The amount of bad debt write-offs in the prior year c) The size of the intercompany receivable balance d) The auditor's allowable risk of assessing control risk i

SLP. Lewis Company Special Order Decision.

I need help developing this SLP. Also I attached the previous one just in case is need it to develop this one since it looks like it is a continuation from the previous one.

Ratios: Profit, Current, Debt to Equity

What three ratios would you use to analyze a company and why would you select those three? Please explain, use examples, and give me references for further research.

Overhead Allocation Using Different Cost Pools

1. If Premier maintains its rule about dropping products with a mark-on below 25%, which additional products, if any, will it drop? 2. If you decide to drop additional product(s), recalculate the allocation rate for the new product mix. Keep repeating Question 1 until you reach a conclusion. What is that conclusion? Is there a

Functions and Operations of Investment Banks

Need to examine the functions & operations of investment banks in the U.S. economy and discuss two financial services provided by investment banks. Identify two types of securities that investment bank syndicates sell high, globally. Is it beneficial to search for the best available investment bank or should a firm stay loyal

Accounting Assistance

1. What is meant by the net realizable value for accounts receivable? 2. What is aging of accounts receivable, and how is it used to account for uncollectible accounts? 3. How is the accounts receivable turnover computed? What information does this ratio provide? 4. Describe what is meant by the term "goodwill." 5.

Politics and Economic Growth

I'm just looking for someone's opinion on the following question: The third and fourth year of presidential terms have higher average rates of real growth than the first and second years. Do you think this is a coincidence or is it a reflection of political reality that politicians are more concerned about re-election than ab

corporate taxation

1.Can the sec 1244 stock be preferred stock? 2.How low can the S corp owner set his own salary? 3.How are distributions taxed under an S corp? 4.Can an S corp owner forgo a salary for a distribution? 5.Is rental income considered active income? 6.How are C corporations different from and similar to S corporations? 7.Descri

Glen and Michael are equal partners in Trout Enterprises

Glen and Michael are equal partners in Trout Enterprises, a calendar year partnership. During the year, Trout Enterprises had gross income of $400,000 and operating expenses of $220,000. In addition, the partnership sold land that had been held for investment purposes for a long-term capital gain of $100,000. During the year, Gl

joint costs at split off: NRV or physical-measures method

Assume that your company operates a joint-production process that generates three main products and one by-product. If you allocate joint costs only for financial reporting, would you ever care whether you use the NRV or the physical-measures method? Explain.

Break-Even Point/Targeted Profit

Since break-even focuses on making zero profit, is it of value in determining how many units must be sold to make a targeted profit? if so, what is it. I'm struggling to understand this. Examples would be great as references. Also, how can a change in the sales mix change the break-even point?