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Accounting

How to record loss contingencies

For loss contingencies, if they are material, you must either disclose them or report them against income - what are the rules on when to record vs when a footnote is needed?

Ackert Company Estimate of Current Stock Price

The Ackert Company's last dividend was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%. What is the best estimate of the current stock price? a. $37.05 b. $38.16 c. $39.30 d. $40.48

This posting addresses preferred stockholders claim on asset

Preferred stockholders hold a claim on assets that: has priority over the claims of both common stockholders and bondholders. has priority over the claims of neither common stockholders nor bondholders. has priority over the claims of common stockholders, but not bondholders has priority over the

Product Cost Distortion and Product Pricing

Sounds Fine, Inc. manufactures two models of stereo speakers. Cost estimates for the two models for the coming year are as follows: Basic Model Advanced Model Direct Material ................... $160 $260 Direct Labo

Jarmon Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail is a multimillion-dollar company started by Peter Never immediately after he failed to finish his first accounting course. The company's motto is "We Never-Fail to Deliver Your Package on Time."

Jarmon Airlines is a small airline that occasionally carries overload shipments for the overnight delivery company Never-Fail is a multimillion-dollar company started by Peter Never immediately after he failed to finish his first accounting course. The company's motto is "We Never-Fail to Deliver Your Package on Time." When Ne

depreciation and capital assets

Zinc inc. is considering the acquisition of a new processing line. The processor can be purchased for $3,750,000. It will cost $165,000 to ship and $85,250 to install the processor. A recently completed feasibility study that was performed at a cost of $65,000 indicated that the processor would produce a positive NPV. Studies ha

How do you compute the variance for Second, Inc.?

See attach file. SECOND, INC. HAD THE FOLLOWING STANDARD COST CARD FOR ITS PRODUCT A: DIRECT MATERIALS 2 LBS @ $4.00 PER POUND $ 8.00 DIRECT LABOR 4 HOURS @ $8.00 PER HOUR. 32.00 VARIABLE OVERHEAD 4 LABOR HOURS @ $5.00 PER LABOR HOUR 20.00 FIXED OVERHEAD 4 LABOR HOURS @ $6.00* PER LABOR

Cost allocation of food services at a hospital

Community General Hospital has a Food Services Department that provides meals for all patients in the hospital. Budgeted and actual meals served for the month just ended are: Meals Served Budgeted Actual Pediatrics Department 31,

Flexible Overhead Budget, Report and Responsibilty Report

Hay's Corporation is continuing its budget preparations. Hay's had the following static budget and overhead costs for March. Hay's Corporation Hay's Corporation Manufacturing Overhead Budget (Static) Manufacturing Overhead Costs (Actual) For the Month of March For the Month of March Budgete

Problem 13-8 Make or Buy

Hill Bicycle Manufacturing company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Hill produces and sells only 6,000 bikes per year. Due to the low volume of activity, Hill could buy the handlebars for $28 each; they cost $32 to make. The followin

Cause-and-Effect vs. Correlation

Cause-and-Effect vs. Correlation Introduction: A cost function is a mathematical description of how costs change. An important issue in estimating a cost function is determining whether a cause-and-effect relationship exists between the level of activity and the costs related to that level of activity. Task(s): Expla

Managerial Accounting - Qualitative factors

Background Information ? Capital budgeting and other types of relevant cost decisions attempt to quantify all of the inflows and outflows associated with choosing a particular course of action. However, sometimes firms fail to recognize some of the more obscure factors associated with these decisions. These factors are sometime

Basic Flexible Buget questions

8-25 Basic Flexible Budget The superintendent of police of the city of Rollag is attempting to predict the costs of operating a fleet of police cars. Among the items of concern are fuel, $.21 per mile, and depreciation, $6,000 per car per year. The manager is preparing a flexible budget for the coming year. Prepare the flexi

Here is a company (S&S) that Ashton Fleming has to analyze the accounts payable processes. The problem is asking to prepare a context diagram and a level 0 DFD (data flow diagram) to accounts payable and a document flowchart to document account payable processing.

Here is a company (S&S) that Ashton Fleming has to analyze the accounts payable processes. The problem is asking to prepare a context diagram and a level 0 DFD (data flow diagram) to accounts payable and a document flowchart to document account payable processing. Ashton Fleming has decided to analyze the accounts payable pr

The Happy Valley Utility Company uses turnaround documents in its computerized customer accounting system. Meter readers are provided with preprinted computer forms, each containing the account number, name, address, and previous meter readings.

The Happy Valley Utility Company uses turnaround documents in its computerized customer accounting system. Meter readers are provided with preprinted computer forms, each containing the account number, name, address, and previous meter readings. Each form also contains a formatted area in which the customer's current meter readi

Accounting for Managers

U5A1 problem 1 ZXC Firm has the following information to determine Predetermine overhead rate for Standard Costing: Estimated total manufacturing overhead costs $1,000,000 Estimated total amount of the allocation base at the level of projected activity

S Corporation vs C Corporation.

From a tax and nontax perspective, what are the advantages and disadvantages of S corporation status versus regular C corporation status?

Boyne University Case Analysis

Please see attachment for full case. Boyne 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 addit

Calculations for Intangible Assets

Based on the information below, compute the total amount to be reported for intangible assets on the balance sheet for the end of the year. How do I treat intangible assets for items not to be included; how do I report? Organization costs 24,000 Trademarks 15,000 Discounts on bonds payable 35,000 Exc

Enron's use of accounting practices

"The primary motivators for Enron's accounting and financial transactions were to keep income, and cash flow up and inflated and liabilities off the books". Is this the 'purpose' of accounting and finance, to keep income up, etc? Are the negative issues now associated with accounting due to accounting itself? What about ac

Weighted average shares calculation example

I have the following question that every time I compute the earnings per share, I keep coming up with two different answers. I'm trying to figure out what I am doing wrong: The following information is available for a corporation: January 1, 2011 Shares outstanding 1,250,000

Bad Debt and Uncollectible Accounts

The following information relates to a company's accounts receivable: accounts receivable balance at the beginning of the year, $300,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivables written off during the year, $16,000

Dividends on preferred and common stock

If you have $800,000 of 8% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share, and no dividends have been paid or declared during 2009 and 2010. Then as of December 31, 2011, it is desired to distribute $488,000 in dividends, how how much will the preferred and common stockholde

Managerial Accounting Business Questions

Managerial accounting questions 1. Explain the difference between fixed and variable costs. 2. Explain whether you agree with the statement "All variable costs are controllable while all fixed costs are uncontrollable". 3. Explain the difference between direct and indirect costs. Do you agree that all variable costs ar

Material Price and Quantity Variance

Below is a question in which I found the answers for #1 a&b however I'm confused on how to determine requirement 2 the material price variance and material quantity variance. I seem to be calculating the wrong figures Thanks for your help Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company