C 7 - Internal Control & Cash 1. Which one of the following is NOT a main purpose of internal control? a. Safeguard a company's assets from employee theft and unauthorized use. b. Enhance the accuracy and reliability of a company's accounting records. c. Prevent insider trading 2. Which one of the following is NOT a r
6. Ace Company's retained earnings account on 1.1.11 was a debit balance of $10,000. During 2012, the company had a net income of $50,000. The 1.1.12 balance of the account was $20,000. What amount of cash dividends was declared during the year? See the attached file.
The total assets of Perez Company were $1,950,000 at the beginning of the year and $1,830,000 at the end of the year. The company reported net income of $225,000 and interest expense of $30,000 during the year. The company's income tax rate was 30%. What was the company's return on total assets for the year? How may this inform
Please help with the following problem. Please provide step by step calculations. Sinatra Company reported $540,000 in sales on account last year. The company's accounts receivable balance increased from $30,000 at the beginning of the year to $54,000 at the end of the year. What was the company's average collection period (
An election is being held to fill three seats on the board of directors of a firm in which you hold stock. The company has 5,800 shares outstanding. If the election is conducted under cumulative voting and you own 300 shares, how many more shares must you buy to be assured of earning a seat on the board?
What are the elements of negligence? How does an intentional tort differ from negligence? Provide examples. How does the strict liability doctrine apply to the practice of accounting? Provide examples.
A publicly traded company needs to replace its accounting information system (AIS) within the next 18 months. The company has funding and resources to handle the replacement, so cost is not a concern. The company has several choices: a. Purchase an off-the shelf accounting system from Oracle (PeopleSoft Enterprise Financial
Winnepeg Corporation is concerned about managing its operating assets and liabilities efficiently. Inventories have an average age of 110 days, and accounts receivable have an average age of 50 days. Accounts payable are paid approximately 40 days after they arise. The firm has annual sales of $36 million, its cost of goods sold
Carbide Corporation is examining its operating cash management. One of the options the firm is considering is a zero-balance account (ZBA). The firm's bank is offering a ZBA with monthly charges of $1,500, and the bank estimates that the firm can expect to earn 8% on its short-term investments. Determine the minimum average
Describe the role of managerial accounting in your current or former place of business.
NPC developed its overhead application rate from the annual budget. The budget is based on an expected total output of 720,000 units requiring 3,600,000 machine hours. The company is able to schedule production uniformly throughout the year. A total of 66,000 units requiring 315,000 machine hours were produced during May. Actua
Investing transactions that do not directly and immediately affect cash are: included in the statement of cash flows. not reported anywhere in the financial statements reported separately on a supplemental schedule to the statement of cash flows. reported separately on the balance sheet. The FASB decided that the al
Transparency and Disclosure: A company's overall policy for controlling and disseminating inside information must meet the standards for transparency and disclosure. However, if a company is in a highly competitive industry "where it has a close rival competing on price, quality, and service". (1) What would the company's sp
Jupiter Company incurred the following costs. 1. Sales tax on factory machinery purchased $ 5,000 2. Painting of and lettering on truck immediately upon purchase 700 3. Cost of paving parking lot for new building constructed 17,900 4. Real estate broker's commission on land purchased 3,500 5. Insurance premium paid for fi
Public Budgeting-What are the criticisms of the property tax system? What are tax expenditures & how do tax expenditures affect taxpayers?
What are the criticisms of the property tax system? What are tax expenditures & how do tax expenditures affect taxpayers?
11) Company A's revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, return on investment will be _____. A. 75% B. 93.75% C. 18.75% D. 46.88% 12) When the variable costing method is used, fixed factory overhea
Choosing Business-Segment Disclosures What factors are considered when a firm chooses segmental information disclosures? Consider the article "Cola Wars: Going Global" (Cespedes, 2009). Next, using outside sources that you may seek and your professional experience, concisely answering the following questions: (A7.1) If you we
Orange Corporation would like to transfer excess cash to its sole shareholder, Danielle, who is also an employee. Danielle is in the 28% tax bracket, and Orange is in the 34% bracket. Because Danielles contribution to the business is substantial, Orange believes that a $50,000 bonus in the current year is reasonable compensation
Whether compensation paid to a corporate employees is reasonable is a question of fact to be determined from the surrounding circumstances. How would the resolutions of this problem be affected by each of the following factors? a. The employee owns no stock but is the mother in law of the sole shareholder. b. The shareholde
In determining Blue Corporations current E &P for 2011, how should taxable income be adjusted as a resullt of the following transactions? a. A captiol loss carryover from 2010, fully used in 2011. b. Nondeductible meal expenses in 2011. c. Interest on municipal bonds received in 2011. d. Nondeductible lobbying expenses i
What factors affect the tax treatment of corporate distributions?
Give two examples of how management of a(n) organization(s) has instituted control processes that appear to be adversely affecting the organization(s). Give two examples of how management of a(n) organization(s) has instituted control processes that appear to be contributing to the overall well-being of the organization.
1. The records of Nepomuzeno, Inc. provided the following information 2012 2013 2014 2015 Pretax income 90,000 92,000 95,000 98,000 Taxable income 63,000 101,000 104,000 107,000 Income Tax rate 30% for all years The above amounts include only two temporary differences;
MCA handles several daily commuter flights. The budget officer compiled the following data regarding airport costs and activity over the past years: Month Flights originating at MCA (000) Airport cost January....................................11............................................
The management of Bayside Company is considering whether one of the department's in its retail store should be eliminated. The contribution margin in the department is $150,000 per year. Fixed expenses allocated to the department are $130,000 per year. It is estimated that$120,000 of these fixed expenses will be eliminated if the department is discontinued. Which costs are irrelevant to this decision? If the department is eliminated, what will be the impact on the company's overall net operating income?
5. The management of Bayside Company is considering whether one of the department's in its retail store should be eliminated. The contribution margin in the department is $150,000 per year. Fixed expenses allocated to the department are $130,000 per year. It is estimated that$120,000 of these fixed expenses will be eliminated if
Please help with the following problem. A divisional manager receives a bonus based on 10% of the residual income from the division. During the current year, the division reported revenues of $1,000,000 and expenses of $500,000. The division had $2,000,000 in average operating assets. The minimum required rate of return for
The following data are available for the Northwestern Division of Dempsey, Inc. and the single product it makes. Average operating assets $3,000,000 Annual fixed costs 560,000 Unit selling price 40 Variable cost per unit 24 How many units must the division sell each year to achieve an ROI of 16%?
1. The following data are available for the Northwestern Division of Dempsey, Inc. and the single product it makes. Average operating assets $3,000,000 Annual fixed costs 560,000 Unit selling price 40 Variable cost per unit 24 How many units must the division sell each year to achieve an ROI of 16%?
Problem 9-48 The Philips Company is preparing a cash receipts schedule for the first quarter of 2005. Sales for November and December 2004 are expected to be $33,000 and $55,000, respectively. Budgeted sales for the first quarter of 2005 are presented here. The Philips Company Sales Budget For Quarter Ended March 31, 2005
Early in January 2010, Tellco, Inc. acquired a new machine and incurred $100,000 of interest, installation , and overhead costs that should have been capitalized but were expensed. The company earned net operating income of $1,000,000 on average total assets of $8,000,000 for 2010. Assume that the total cost of the new machine w
Hughes Satellite Corp. manufactures satellite dishes used in residential and commercial applications. For each unit the following costs apply: $50 for direct materials, $100 for direct labor, and $60 for variable overhead. The company's annual fixed overhead cost is $750,000; it uses expected capacity of 12,500 units produce