A company has a margin of safety of 25%, a contribution margin ratio 30%, and sales of $1,000,000. (a) What was the break-even point? (b) What was the operating income? (c) If neither the relationship between variable costs and sales nor the amount of fixed costs is expected to change in the next year, how much additional ope
Product J is one of the many products manufactured and sold by Gooble Company. An income statement by product line for the past year indicated a net loss for Product J of $7,250. This net loss resulted from sales of $265,000, cost of goods sold of $186,500, and operating expenses of $85,750. It is estimated that 30% of the cost
Presented here is an aging schedule for Zimmerman Company. Please see attachment. Customer Total Not Yet Due Number of Days Past Due 1â?"30 31â?"60 61â?"90 Over 90 Aaron $22,000 $12,000 $10,000 Barry 40,000 40,000 C
1. Foxworthy, Inc. is a manufacturer with a calendar accounting year. A physical inventory is taken on January 1, and any items not in inventory are charged to cost of goods sold. The current year is 2010 and all transaction occur in 2010 unless otherwise specified. a. In late September, Foxworthy signed a $3,500,000 contrac
Dana purchased as asset from her brother for $15,000. Her brother's basis was $20,000. If Dana sells the asset to an unrelated party for $12,000, she will recognize. A: ($___)Loss). B:($___)Loss. C:-0- D($___)Loss
Dan in Florida wants to trade Liz in New York: Dan's rental property is worth $350,000. Dan's adjusted basis is $200,000. Liz's rental property is worth $650,000 and has a $250,000 mortgage that will be assumed by Dan. Dan will also give Liz $50,000 in cash at closing. Liz's adjusted basis is $400,000. What
The factory overhead costs (maintenance department) are allocated to products based on the number of hours of maintenance use by each product line. The maintenance department has fixed costs of 500,000 and variable costs of 25 per hour of maintenance provided. The variable costs include the salaries of the maintenance workers. M
What irregularities should a fraud examiner look for in the accounts payable area of a firm?
What irregularities should a fraud examiner look for in areas within a firm where physical cash is used?
An irate student complained the the cost of textbooks was too high. He randomly surveyed 26 other students and found that the mean amount of money spent for textbooks was $121.60. If the standard deviation of the population was $6.36, find the best point estimate and the 90% confidence interval of the true mean.
The average thickness of books on a library shelf is 8.3 centimenters. The standard deviation is 0.6 centimeter. If 20% of the books are oversized, find the minimum thickness of the oversized books on the library shelf. Assume the variable is normally distributed.
The average height of a certain age group of people is 53 inches. The standard deviation is 4 inches. If the variable is normally distributed, find the probability that a selected individual's height will be what?
PROBLEM ATTACHED IN THE FILE. Foulds Company makes 10,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: An outside supplier has offered to sell the company all of these parts it needs for $42.30 a unit. If the company accepts this offer, the fa
Geballe Industries is a division of a major corporation. Last year the division had total sales of $21,420,000, net operating income of $2,270,520, and average operating assets of $6,000,000. The company's minimum required rate of return is 10%. Question What is the division's margin? What is the division's turnover? W
The table below shows the differences in accounting treatments for goodwill in three selected countries. Accounting for goodwill in selected countries United States - No-to expense immediately; No-to charge to equity; No*-tax deductible Canada - No-to expense immediately; No-to char
The management of Wallingford MicroBrew is considering the purchase of an automated bottling machine for $93,500. The machine would replace an old piece of equipment that costs $43,000 per year to operate. The new machine would cost $13,000 per year to operate. The old machine currently in use could be sold now for a scrap value
City University, a nonprofit college, is required by the Board of Regents to transfer $500,000 from its General Fund to its Sinking Fund at the end of each year. On December 31st, City University transfers $350,000 in cash. Show how city University would record this transaction. Please show the impact on both funds and the fu
Acme Manufacturing is a decentralized corporation. Divisions are treated as investment centers. In recent years, Acme has been running about 11% ROA for the corporation as a whole, and has a cost of capital of 9%. One of their most profitable divisions is Turner Products, which last year had ROA of 17% ($1,700,000 operating i
Issa Company manufactures a personal computer designed for use in schools and markets it under its own label. Issa has the capacity to produce 25,000 units a year but is currently producing and selling only 15,000 units a year. The computerââ?¬â?¢s normal selling price is $1,600 per unit with no volume discounts. The unit-l
Last year the return on total assets in Jeffrey Company was 8.5%. The total assets were 2.9 million at the beginning of the year and 3.1 million at the end of the year. The tax rate was 30%, interest expense totaled $110 thousand, and sales were $5.2 million. Net income for the year was: A) $145,000 B) $222,000 C) $33
Two products, IF and RI, emerge from a joint process. Product IF has been allocated $25,300 of the total joint costs of $46,000. A total of 2,000 units of product IF are produced from the joint process. Product IF can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of
Average operating assets are $110,000 and net operating income is $23,100. The company invests $25,000 in new assets for a project that will increase net operating income by $4,750. What is the return on investment (ROI) of the new project? A) 21% B) 19% C) 18.5% D) 20%
23- Clampett, Inc. (an S corporation) previously operated as a C corporation. Distributions from Clampett, Inc. are deemed to be paid in the following order: A. The AAA account, prior C corporation earnings and profit, shareholder's remaining stock basis B. Shareholder's remaining stock basis, the AAA account, prior
9- Beth's business purchased only one asset during the current year. It placed in service machinery (7-year property) on December 1 with a basis of $50,000. Calculate the maximum depreciation expense (ignoring Section 179 or bonus expensing) 10- Ilene rents her second home. During 2009, Ilene reported a net loss of $15,000 fr
3- Jaime recently found a "favorable" trial level court opinion directly on point for her tax question. Which trial level court would he prefer to have issued the opinion? 4- Sam saved diligently for his college education by putting part of his pay into U.S. Series EE saving bonds. Sam purchased the bonds for $6,500, and this
Current assets as of Dec 1 Cash Basis 45000 FMV 45000 AR Basis 15000 FMV 30000 Inventory Basis 81000 FMV 120000 On Dec 1 I have terminated my partnership interest of which I am 1/3 partnership in and received 15000 cash 10000 FMV Accounts receivable 40000 Inventory FMV I have 40000 basis in the company prior to di
Should a company's accounting department be centralized or decentralized? Why? The first sentecse should be a thesis which answers the question directly.
Explain the impact of occupational fraud and abuse on the company. Explain the four potential corruption schemes to be aware of within the company?
An individual taxpayer sells some used assets in a garage sale. Why are none of the proceeds taxable in most situations? What usually constitutes evidence of a "sale" of property for tax purposes? What is the difference between a "worthless security" and "1244 stock"? How is it possible to have a casualty gain from t
Assume that you are a CPA working for an accounting firm. Please respond to the following: Discuss the advice you give to your clients regarding: o Planning for Retirement o Planning for Children's Education o Disability Planning