Selected information taken from the financial statements of Fordstar Co. for the year ended December 31, 2010, follows: Net cash provided by operations...$98,000 Cost of goods sold.........................$310,000 Selling, general, and administrative expenses...$124,000 Accounts Payable....$90,000 Extraordinary loss from
Define what it is meant by internal control. Provide a minimum of three examples. It is the end of the accounting period, and your boss asks you to help determine the inventory balance to place in the company's balance sheet. Explain which physical quantities of inventory that you will include, and which you will exclude.
1. The FASB's standard-setting process includes, in the correct order: Exposure draft, research, discussion memorandum, SFAS. Research, exposure draft, discussion memorandum, SFAS. Research, discussion memorandum, exposure draft, SFAS. Discussion memorandum, research, exposure draft, SFAS.
1. Accounting standard setting has been characterized as a political process. Discuss this proposition giving an example. 2. Explain how management's discussion and analysis of its operations and liquidity may be helpful to investors. 3. In a recent press release, Foot Locker Inc. reported that its fiscal first-quarter net
Sacks manufactures embroidered jackets. The company prepares flexible budgets and uses a standar cost system to control manufacturing costs. The following standar unit cost of a jacket is based on the static budget volume of 14,000 jackets per month. -Direct Materials (3.0 sq. ft x $4.00 per sq.ft)
Hector P. Wastre,l a careless employee, left some combustible materials near an open flame in Salter Company's plant. The resulting explosion and fire destroyed the entire plant and administrative offices. Justin, the company's controller and Constance, the operations manager were able to save only a few bits of information as
Scenario You have recently obtained a new position as a manager of an international accounting firm, Smith, Lindsey, and Lueders, CPA (SLL). SLL is primarily an auditing firm. Part of your duties will be to analyze the current state of accounting with an emphasis on the international environment. An additional responsibility
From the Internal Revenue Service website (www.irs.gov). Click on the "Business" tab, then the "Corporations" link. Find the link to "S Corporations" and read the information provided by the IRS. Answer the following question: Explain the reasoning behind the need for the S Corporation provisions in the IRS Tax Code and
As of March 11, 2007, Swanson Group, Ltd. had 300,000 shares of 10$ par value common stock authorized and 185,000 shares issued. There were 6,000 shares of treasury stock that had been purchased by the firm at an average cost of 12$. The market value of the stock on March 11, 2007, was 22$ a. how many shares of common stock
A) Someone in the 36 percent tax bracket can earn 9 percent annually on her investment in a tax-exempt IRA account. What will be the value of a one time $10,000 investment in 5 years? 10 years? 20 years? b) Suppose the preceding 9 percent is taxable rather then tax-deferred and the taxes are paid annually. What will be the
Yarman Inc. began business on January 1, 2008. Its pretax financial income for the first 2 years was as follows: 2008 $240,000 2009 560,000 The following items caused the only differences between pretax financial income and taxable income. 1. In 2008, the company collected $180,000 of rent; of this amount, $60,000 was
Question 1 Stacy purchased a stock last year and sold it today for $3 a share more than her purchase price. She received a total of $0.75 in dividends. Which one of the following statements is correct in relation to this investment? A. The dividend yield is expressed as a percentage of the selling price. B. The capital gai
Should Fair Value Accounting be required in the preparation of US GAAP financial statement? Included in your response should be a discussion of the definition of fair value accounting and the benefits and the disadvantages of the use of fair value accounting. Finally, you are required to draw a conclusion by answering the stated
Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same? a. A reduction in expenses. b. An increase in net operating income. c. An increase in operating assets. d. An increase in sales.
Fixed cost per unit increases as activity decreases and decreases as activity increases. True or False
Which of the following costs at a manufacturing company would be treated as a product cost under the variable costing method? a) direct material cost b) property taxes on the factory bldg c) sales manager's salary d) all of the above
Imai Draperies makes custom draperies for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools. Overhead costs: Production overhead . . . . $240,000 Office expense . . . .
How much total overhead cost is expected to be allocated to unframed, steel, and wood frames? Unframed prints 80,000 units direct material print $12. Steel framed 15,000 units direct material print $16. Frame $4. Wood frame 7,000 units direct material print $20 frame $6 Matt Direct labor Unfra
ABC Corporation purchased new machinery for $600,000. It paid $60,000 down and financed the balance for 3 years at 10% interest. The equipment was put into service on January 1st, 2001. At that time, the useful life was estimated as 10 years with a $90,000 salvage value. Straight line depreciation method was selected for bot
1. Wages paid to the factory maintenance supervisor are considered an example of: Direct Labor - yes, Period Cost - yes Direct Labor - yes, Period Cost - No Direct Labor - no , Period Cost - yes Direct Labor - no , Period Cost - no 2. Machinery Depreciation on a manufacturi
Please determine the change in cash to the Investing activities based upon the following cash flow statement. Please explain your answer. I only noticed the fixed assets, but not sure about the securities. Assets 12/31/2012 12/31/2011 Cash $87,000 $79,000 $8,000 Inventory $30,000 $44,000 $(14,000) Secu
Financial data for Joal de Paris Inc for last year is as follows (see attachment) The company paid dividends of $15,000 last year. The "Investment in Buisson, SA on the balance sheet represents an investment in stock of another company. 1. Compute the company's margin, turnover, and ROI for last year. 2. The board of direc
The certification of being a CPA means that they have been tested and met certain industry criteria (education and experience) to qualify as "experts" in the field of accounting. But, the CPA designation is primarily used to verify the accounting records for external parties. What would be the equivalent internal designation a
Exercise 1 You have a mine with the following characteristics: 2010 depletion expense: Cost of natural resources less residual value $ 9,000,000 Land improvementsâ?"roads 975,000 Total cost to be depleted $ 9,975,000 Estimated tons of ore 3,000,000 Depletion cost per tonâ?"$9,975,000/3,000,000=
Explain the difference between evaluating, reporting, and testing internal controls for public and nonpublic companies. Under what circumstances would you attempt or not attempt to apply the standards for public companies to nonpublic companies and why?
Q. What is the change in cash due to operating activities? Evergreen Inc. Comparative balance sheets December 31, 2012 Assets12/31/2012 12/31/2011 Cash $357,000 $312,000 Accounts receivable $80,000 $83,000 Inventory $213,000 $199,000 Prepaid expenses $25,000 $21,000 Fixed assets $463,000 $419,000 Accumulat
Questions to be answered are: 1) What are the four basic requirements for a plan to qualify under section 401(a) of the I.R.C.? (2) What is meant by the term 'qualified deferred compensation' for income tax purposes, and for whom is it most often used? (3) At what time is the employer allowed to take a deduction for i
Faulk Company has a joint process, which produces three products, X, Y, and Z. Each product may be sold at spli-'off or processed further and then sold. Joint processing costs for a year amount to $30,000. Other relevant data are as follows: Separabl
Explain the parts of a decision tree. What are some benefits of using decision trees? In what ways can decision trees be used for business decisions? Name some real-world examples.
The Balakrishnan Corporation began business on January 1, 2000 to produce and sell a single product. Reported operating income figures under both absorption and variable costing for the first 4 years of operation are as follows: Absorption costing 2000: $80,000 2001: 70,000 2002: 50,000 2003: 40,000 Variable costing 2