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What is the cash flow after tax using the CFAT formula?

Revenues increase by 400,000, cash operating expenses increase by 180,000, and depreciation increases by 45,000. The tax rate is 34%. a) Calculate the cash flow after tax using the formula that CFAT is operating cash flows after tax plus the depreciation tax shield. b) Calculate the cash flow after tax using the formula that C

Cost accounting: Activity based costing.

Alpha manufacturing produces two types of entry doors and standard. The assignment basis for the support costs has been direct labor dollars. For 2008 alpha complied the following data for the two products: deluxe Standard sales units 50,000

Detailed Explanation to Accounting questions

Solve sample problems. * credit will be given. due date today around 6PM Circle the one best answer. 1. The ACE Company has five plants nationwide that cost $100 million. The current market value of the plants is $500 million. The plants will be recorded and reported as assets at a. $100 million. b. $600 million. c. $4

Costing accounting for Ballpark Concessions

Ballpark Concessions currently sells hot dogs. During a typical month, the stand reports an operating income of $9,000 with sales of $50,000, fixed costs of $21,000, and variable costs of $0.64 per hot dog. (The selling price per hot dog should be calculated given the information.) Next year, the company plans to start se

Determining Cash Balance for Clint Eastwood Co

E7-1 (Determining Cash Balance) The controller for Clint Eastwood Co. is attempting to determine the amount of cash to be reported on its December 31, 2007, balance sheet. The following information is provided. 1. Commercial savings account of $600,000 and a commercial checking account balance of $900,000 are held at First

Identifying Variances in Budgets

Well you made it and you have hung up your shingle that your are a CPA and are prepared to take on new clients. You sit down at your desk, turn on your shiny new Dell Laptop with wireless connection, take a sip of your steamy hot Starbucks Coffee and gaze at that beautiful shiny new wooden desk (that set you back $1000). Just

Effect of Information on Journal Entries

With the provided balance sheet of Johnson Corporation as of 12/31/2007 and the relevant data for 2008: 1. Record the effects of the information given and provide in journal entry form. 2. Prepare an income statement, statement of retained earnings, and a balance sheet for year ending December 31, 2008. Johnson Corporatio

Volume and Contribution Margin

Under the assumptions used in cost-volume-profit analysis, as volume increases: A. fixed costs increase in proportion to the increase in volume. B. variable costs per unit remain the same. C. fixed costs per unit remain the same. D. variable costs per unit increase in proportion to the increase in

The Equity Method of Accounting for Investments

On January 1, 2008, acme co, is considering purchasing a 40 percent ownership interest in PC co, a privately held enterprise for $700,000. PHC predicts its profit will be $185,000 in 2008, projects a 10 percent annual increase in profits in each of the next four years, and expects to pay a steady annual dividend of $30,000 for t

Question about Taxable Income & Tax Liability

D&D, Inc. reported the following results for 2007. Calculate D&D's taxable income and resulting tax liability using the tax rates given. Sales $20,000,000 Cost of sales $8,000,000 Operating expenses $1,000,000

Key West Company: Memo Help

I have the answers for the problems, I just need help with a 800 word memo. I've tried but am having really problems putting it into words. Please help me. ------- DATE : September 18, 2009 TO : John Smith Audit Partner [Name of Audit Firm] FROM : [Your Name] Auditor-in-Charge Audit Team Key We

Bank reconciliation, accounting

1. What's bank reconciliation? Is it important to reconcile books on a regular basis? What are the steps? Please prepare bank reconciliation for the following scenario: Prepare a July 31 bank reconciliation statement and the resulting journal entries for the Simmons Company. The July 31 bank statement indicated a cash balan

Cost tracing, cost allocations; Manufacturing acocunting methods

#1 Well that glorious day has arrived and you have opened up your owned beautiful business consulting practice in that new tower located on the corner of 56th Street and Lexington, New York City!!! Who would have believed the day that you were sitting on top of the world. You unlock the doors and await that first client.

Practice question 2 - University Level

Please assist with practice question. Please show step by step. The ledger of Piper Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit Credit Debit Credit Prepaid Insurance 3,600.00 Supplies 2,80

Business Schools: 10 Variables and Formulation of Ranking

See attached file. 8. In a recent ranking of top graduate business schools in the United States published by U.S. News & World Report, data were provided on a number of attributes of recognized graduate programs. Specifically, the following variables were considered by U.S. News & World Report in establishing its overall ran

Theoretical Foundation of Accounting Principles

During the past several years, the Financial Accounting Standards Board has attempted to strengthen the theoretical foundation for the development of accounting principles. Two of the most important results of this attempt are the Conceptual Framework Project and the Emerging Issues Task Force. During this same period, the FASB

Measures of Central Tendency

You must decide which group to choose. Consider at least two measures of central tendency and at least one measure of dispersion for each group and use those to make your choice. Be sure to justify your choice with at least one page of discussion and analysis. Can you base a decision on the information provided and the measu

Explain financial leverage, tax implications of debt

I need help with the following 3 questions. 1. What are the tax implications of debt financing? Explain the term financial leverage as it relates to debt. 2. What is the difference between Preferred Stock and Common Stock? Why would a company prefer the use of Preferred Stock over Common for long term financing? 3. W

Highland Shortbread: Compute the predetermined overhead rate of the year

Highland Shortbread produces a single product and uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard machine hours. According to the company's flexible budget, the following overhead costs should be incurred at an activity level of 18,000 machine hours (the

Warranties and premiums amounts determined

Ray Charles Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Charles uses two sales promotion techniques- warranties and premiums- to attract customers. Musical instruments and sound equipment are sold with one-year warranty for replacement of parts

Gross Profit

1. On March 1, 2007, Winter Company, entered into a contract to build an apartment building. It is estimated that the building will cost $2,000,000 and will take 3 years to complete. The contract price was $3,000,000. The following information pertains to the construction period. 2004 2005 2006 Costs incurred to date $600,000

Tax and GAAP Differences

Answer 12 of these questions. Where applicable, show all work/computations, and use examples for partial credit. Format your submission in accordance to APA writing style guidelines. 1. What are some of the major differences between GAAP and income tax accounting? 2. What are all the possible filing statuses? What charact

Questions - Cost Accounting

Questions 2 and 3 I need help with answering the following cost accounting questions. Could you please provide a words count of 200 for each questions. 2. Contrast the primary focus of job order cost accounting and of process cost accounting. 3. What are the similarities between a job order and a process cost system?

Preparing a bank reconciliation

Tom Landry owns a construction business, Landry Supply Co. The following cash information is available for the month of October 2008. As of October 31, the bank statement shows a balance of $13,800. The October 31 unadjusted balance in the Cash account of Landry Supply Co. is $12,700. A review of the bank statement revealed the

Accounting for Pollution Expenditure

Phil Mickelson Company operates several plants at which limestone is processed into quicklime and hydrated lime. The eagle ridge plant, where most of the equipment was installed many years ago, continually deposits a dusty white substance over the surrounding countryside. Citing the unsanitary condition of the neighboring commun

Minimizing AGI

Monica, a single taxpayer, purchased 10,000 shares of 1244 stock several years ago at a cost of $20 per share. In November 2007, she received an offer to sell the stock for $12 per share. She has the option of either selling all of the stock now or selling half of the stock now and half of the stock in January of next year. M