Explore BrainMass


Critiquing a Report; Preparing Spending Variances

Farrar University offers an extensive continuing education program in many cities throughout the state. For the convenience of its faculty and administrative staff and to save costs, the university operates a motor pool. The motor pool operated with 20 vehicles until February, when an additional automobile was acquired at the re

recording sales tax for large and small merchants

A state requires large merchants (i.e., those with sales over a specified dollar amount) to report and remit their sales taxes within fifteen days of the end of each month. It requires small' merchants to report and remit their taxes within fifteen days of the end of each quarter. In January 2012, large merchants remitted sal

Absorption Costing Approach to Cost-Plus

The Economists' Approach to Pricing; Absorption Costing Approach to Cost-Plus Pricing Software Solutions, Inc., was started by two young software engineers to market SpamBlocker, a software application they had written that screens incoming e-mail messages and eliminates unsolicited mass mailings. Sales of the software have

Expenditures vs Expenses

(Expenditures Vs Expenses) Family Services, a small social service nonprofit agency, began operation on January 1, 20X1, with $40,000 cash and $150,000 woth of equipment, on which $60,000 was owed on a note to City Bank. The equipment was expected to have a remaining useful life of 15 years with so nalbage value. During its fir

Analyze the four eras of business

Analyze the four eras of business and make a prediction for what the next era will be like. Explain the rationale behind your prediction.

Calculate the Firm's Predetermined and Actual Overhead Rates


Prepare Financial Statements Regimes

1. a. Prepare separate financial statements reporting net income and return on sales for Aerospace and Electronics after the move where the expected lower fixed SGA of $3 million is allocated to the two divisions using: (1). Revenues as the allocation base. (2). Manufacturing cost as the allocation base. (3). Manufacturin

Making Good Use of Out-of-State Relatives, dependency exemptions

Making Good Use of Out-of-State Relatives. Please respond to the following: (The fact that a use tax has been implemented in order to prevent the avoidance of a sales tax indicates that the loss of revenue is recognized.) Discuss how common you believe this scenario may be and give example(s) to support your answer. - As a C

Obligations of Bonds, Characteristics of Corporation

Describe the two major obligations incurred by a company when bonds are issued. Magda and Helga are discussing how the market price of a bond is determined. Magda believes that the market price of a bond is solely a function of the amount of the principal payment at the end of the term of a bond. Is she right? Discuss. A s

Schick Technologies

Answer the following four questions for the attached case on Schick Technologies.

Contracts and Edits

Would it ever be beneficial for an accountant to include ethical standards in a contract? Explain.

Accounting and the US Economic System

Accounting is ingrained in our society and it is vital to our economic system in the U.S. How does this fit with your perception of accounting? Justify your response with examples.

An accounting magazine sells 50,000 copies a month

An accounting magazine sells 50,000 copies a month. The total variable costs are $40,000 and fixed costs are $20,000. An additional one-off storage cost of $2,000 is incurred if production exceeds 55,000 units. A management accountant then makes suggestions about which production run to use. On behalf of the management acc

XYZ COMPANY P16-24 Continue or discontinue a segment?

P16-24 Continue or discontinue a segment? [LO 2, 3]. Please see attachment for questions. P16-24 Continue or discontinue a segment? [LO 2, 3] The segmented income statement for XYZ Company for the year ended December 31, 2010, follows: XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2010 To

Addressing Reserves and Income Smoothing

Income smoothing can certainly assist organizations in achieving certain goals. Inappropriately using reserve accounts could be considered unethical as well. How would management explain their actions related to income smoothing and using reserve accounts to their accountants/auditors while they are performing their examinations

Assets required to start an auto parts store

In the spotlight about FedEx Corporation, you get a feel for the amount of investment in assets and the resulting liabilities that are required to operate a competitive corporation. Even small businesses require plant, property and equipment to compete and normally rely on some form of debt to finance itself. Let's start up a co

Accounting Journal Entries

On January 1, Flory Company issued $300,000, 8%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1. Prepare journal entries to record the following events. The issuance of the bonds. Date Account/Description Debit Credit Jan. 1 The payment of interest on July 1, assuming no previ

Snazzy Jeans, Inc. manufactures designer jeans

Snazzy Jeans, Inc. manufactures designer jeans. The company uses standard costing and has developed the following information about standards for its product. Materials: 2 yards per unit; $10 per yard Labor: 0.25 DL hour per unit; $11 per hour During October, the company experienced an unanticipated spike in demand and

Liquidity Growth and Income Statements

1) Construct the Current Assets section of the Balance Sheet from the following: Sales (Credit) 1,250,000 Gross Profit ( 15% of Sales ) Inventory Turnover 20x Current Liabilities 225,000 Working Capital -75,000 Average Collection Period 27 days 2) Give

Computing EPS Balance Sheets

The Shareholders' Equity section of Holiday Roads Company's balance sheet shows: 31/12/2010 31/12/2011 Preferred dividend, $200 par value, 5% dividend, 20,000 shares issued and outstanding $4,000,000 $4,000,000 Common stock,

Recording Cash and Stock Dividends

The stockholders' equity section of Warm Ways Inc's balance sheet at January 1, 2011, shows: Preferred dividend, $100 par value, 10% dividend, 50,000 shares issued and outstanding $5,000,000 Common stock, $6 par value, 1 million shares issued and outstanding

Cash estimations for a capital expenditure analysis

Determine (quantify) how much, if any, costs should be included in cash estimations for a capital expenditure analysis for the following situations. Explain your answers. EACH SITUATION IS INDEPENDENT OF THE OTHERS. If you can, use Excel spreadsheet to show the formula. Problem 1: Keystone Cops, a consulting firm, is assis

Net Income, Cash Flow, and EVA

Last year Cole Furnances had $5 million in operating income (EBIT). The company had a net depreciation expense of $1 million and an interest expense of $1 million; its corporate tax rate was 40%. The company has $14 million in operating current assets and $4 million in operating current liabilites; it has $15 million in net plan

What is the Company's Net Income?

Please address the problem in step by step process showing how you formulated the answer. Question: The Moore Corporation has operating income (EBIT) of $750.000. The company's depreciation expense is $200.000. Moore is 100% equity financed, and it faces a 40% tax rate. What is the company's net income? What is its net cas