Alice and Bill plan to go into business together. They anticipate losses in the first two or three years, which they would like to use to offset income from other sources. They also are concerned about exposing their personal assets to business liabilities. Advise Alice and Bill as to what business form would best meet their
1. Why do we have different methods of depreciation that a company can use? 2. Which accounting method provides the lowest net income? 3. Will computerized systems allow you to enter a transaction out of balance? 4. Why is it important to have some uniformity in financial statements? Please include references for the a
Utility costs at one of Dwayne Corporation's factories are listed below: Machine Hours Utility Cost February 4.221 $ 39.308 March 4.268 39.573 April 4.234 39.392 May
Mr. Zimmerman sold assets on an installment plan. Please determine Mr. Zimmerman's gross income for 2010 based upon the following information: Year Installment Sales Gross Profit 2010 Collections 2008 $200,000 $50,000 $25,000 2009 $300,000
No. of Outstanding share before issue = 4,000,000 No. of Outstanding share after issue 4,000,000 + 500,000 = 4,500,000 (500k shares issued @ 31 per share) EPS before issue = $1.75 ; EPS after issue = $1.56 If the 500,000 shares can only be issues at $31 per share and the company can earn 6% on the net proceeds, shoul
Highlight the items which are classified as fixed cost? - Depreciation of assembly line facilities at ford - Shipping costs from an Amazon distribution center - The cost of hardware installed on sailboats - Recurring advertising costs by a physician's office - Wages paid to temporary personnel - Insurance on factory assemb
Which of the following statements is not true regarding the goal of financial management? The goal of maximizing the value per share of existing stock is relevant to all organizations. A way of aligning management goals to shareholder's interest is to tie managerial compensation to the market value of the firm
The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information: ? Sales were at $450,000, all for cash. ? Merchandise inventory on October 31 was $200,000. ? The cash balance on November 1 was $18,000. ? Selling and administrative expenses are budgeted at $60,000 for
1) Both nondeductible contributions to a traditional IRA and contributions to a Roth IRA are similar in the sense that neither provides a tax deduction at the date of contribution. Which of the two types would be most advantageous to taxpayers, and why? 2) Your client is about to establish his own business and hire at least 1
For which of the following decisions are sunk costs relevant? a. the decision to keep an old machine or buy a new one b. the decision to sell a product at the split-off point or after futher processing. C. the decision to accept or reject a special offer D. All of these E. none of these
The following information is available on Company A: Sales..$900,000 Net Operating income $36,000 Stockholder's equity.$100,000 Average operating assets..$180,000 Minimum required rate of return 15% Company's A residual income is?
Part J88 is used in one of Quinney Corporation's products. The company makes 3,000 units of this part each year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Direct materials--$7.70 per unit Direct labor--$6.00 per unit Variable manufacturing overhead $8.00
Procter & Gamble Company is a Cincinnati-based company that produces household products under brand names such as Gillette, Bounty, Crest, Folgers, and Tide. The company's 2006 income statement showed the following (in millions): Net sales $68,222 Costs of product sold
1. Prepare a summary of what you consider to be the TOP 5 major characteristics of each type of business entity. 2. Prepare a summary isolating what you think are the TOP 5 differences between any of the business entities.
Below is all necessary information needed to answer my following questions. Recently completed 2009 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash
Marilyn, a business executive who lives and works in Cleveland, accepts a temporary out-of-town assignment in Atlanta for a period of ten months. Marilyn leaves her husband and children in Cleveland and rents an apartment in Atlanta during the ten-month period. Marilyn incurs the following expenses, none of which are reimburs
See attached files. E7-12 Parent purchases subsidiary bonds P7-4 Compute separate and consolidated items E8-9 Acquisition with goodwill E8-10 Sale of an non-controlling interest E8-13 Subsidiary issues additional shares Text book is advanced accounting - instructor reviews copy - tenth edition authors Floyd Beams, Jo
Montana Matt's Golf Inc. was formed on July 1, 2009, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instruction business into his golf equipment and accessory stores. Magilke paid $770,000 cash for Old Master. At
4. Mercer has three product lines in its retail stores: books, videos, and music. Results of the fourth quarter are presented below: Books Music Videos Total Units sold 1,000 2,000 2,000 5,000 Revenue $22,000 $40,000 $23,000 $85,000 Variable departmental costs 17,000 22,000 12,000 51,000 Direct fixed c
See the attached file. 3. Coyle Company manufactured 6,000 units of a component part that is used in its product and incurred the following costs: Direct materials $35,000 Direct labor 15,000 Variable manufacturing overhead 10,000 Fixed manufacturing overhead 20,000 $80,000 Another company has offered to sell
2. Badden Company needs a cash budget for the month of April, 2006. The company's controller has provided you with the following information and assumptions: a. The April 1, 2006 cash balance is expected to be $11,000. b. All sales are on account. Credit sales are collected over a three-month period--50 percent in the month of
1. Tom and Linda are married taxpayers who file a joint return. They have itemized deductions of $11,750 and four exemptions. Assuming an adjusted gross income of $40,000, what is their taxable income for 2010? 2. Compute Marie's taxable income for 2010, assuming she is single and claims two dependent children. Her adjuste
Given the long tax history of this country, why do you think our tax laws need to be tweaked on a continual basis? Would a flat tax solve the problem or create a new one?
Absorption Income versus Contribution Margin Income Can you give specific benefits to be derived from using the information from computing gross profit on sales as opposed to contribution margin? Is net income always going to be the same regardless of the accounting approach? Why don't we use the contribution margin format
Please help with questions in the following attachment. 1. Company A begins business this year making airplane propellers. At the end of 2005, 750,000 lbs. of raw materials has been with 400,000 propellers produced. The total value of these propellers was $450,000. The material costs were $200,000 with the rest being co
See attached. Split off Point and Estimated net realizable value Raw materials are put into production in Department X, and at the end of processing in this department, 3 products appear. Product A is sold at the split-off point with no further processing. Products B and C require further proces
There have been some discussions about the possibility of IRS applying only a flat tax rate in the future to every individual's income in order to calculate the individual's share of income tax. Share your opinion about this plan with class and explain why you do or do not like this plan.
** Please see the attached file for the requisite financial statements ** SAC has developed revolutionary manufacturing techniques utilizing its new spark plug manufacturing technology to offer special-order spark plugs for the auto racing industry. The company is currently using process costing for its spark plugs but is con
The Princeton Company uses flexible budgets and a standard cost system. â?¢ Direct-labor costs incurred, 12,000 hours, $150,000 â?¢ Variable-overhead costs incurred, $37,000 â?¢ Fixed-overhead flexible-budget variance, $1,600, favorable â?¢ Finished units produced, 1,800 â?¢ Fixed-overhead costs incu
In its most recent financial statements, Newhouse Inc reported 50 million of net income and 810 million of retained earnings. The previous retained earnings were 780 million. How much in dividends was paid to shareholders during the year? The Talley Corporation had a taxable income of 365,000 from operations after all operati