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Accounting

Special Decisions

How do managers go about making segment or product line elimination decisions?

Variable Cost Element, Fixed Cost Element & Total Overhead

Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs (in Japanese yen, denoted ¥) at high and low levels of activity for recent

Managerial Accounting - Cost Accounting

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $800 and the variable cost per cup of coffee served is $.67. Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated levels of activity for a cof

Exchange lacking commercial substance

Equipment that cost $66,000 and has accumulated depreciation of $30,000 is exchanged for equipment with a fair value of $48,000 and $12,000 cash is received. The exchange lacked commercial substance. The gain to be recognized from the exchange is a. $4,800 gain. b. $6,000 gain. c. $18,000 gain. d. $24,000 gain. The new

payables, collections, manufacturing costs

1. Wateredge Corporation has budgeted a total of $361,800 in costs and expenses for the upcoming quarter. Of this amount, $45,000 represents depreciation expense and $7,300 represents the expiration of prepayments. Wateredge's current payables balance is $265,000 at the beginning of the quarter. Budgeted payments on current paya

Accounting: reporting earnings per share

During the fiscal year ended September 30, 2011, Worrell, Inc., had a 2-for-1 stock split and a 5% stock dividend. In its annual report for 2011, the company reported earnings per share for the year ended September 30, 2010, on a restated basis, of $0.60. Calculate the originally reported earnings per share for the year ende

Tax treatment: gambling debt

Joe owes willy $5,000 from an old gambling debt. Discuss the tax treatment for the $5,000 to both Joe and Willy.

taxable sources of income

The instructions accompanying the Federal income tax return (Form 1040) provide examples of items that must be included in gross income, but do not list all possible types of income subject to tax. Would these instructions be improved if they included a complete listing of taxable sources of income? Indicate the source of your o

Alternative Income Statements and Decision Making

Question 1: What are some examples of how alternative income statements are used in decision making? What are the two types of approaches in using alternative income statements? What is cost behavior and how does it impact a financial analysis? What processes does your company or a previous employer use to analyze cost behavior

Net income and earnings per share calculation

During the year ended December 31, 2011, Gluco, Inc., split its stock on a 3-for-1 basis. In its annual report for 2010, the firm reported net income of $3,703,920 for 2010, with an average 268,400 shares of common stock outstanding for that year. There was no preferred stock. Required: (a) What amount of net income for 20

Calculate Cash Sources or Cash Uses

** Please see the attached file for the complete problem details ** For each of the items, calculate the cash sources or cash uses that should be recognized on the statement of cash flows for the year ended December 31, 2010.

Calculating Basic Earnings per Share: Ringemup Inc. Example

Ringemup, Inc., had net income of $473,400 for its fiscal year ended October 31, 2010. During the year the company had outstanding 38,000 shares of $4.50, $50 par value preferred stock, and 105,000 shares of common stock. Required: Calculate the basic earnings per share of common stock for fiscal 2010. (Round your answer t

Calculate gross profit

A. Calculate the gross profit ratio for each of the past three years. b. Assume that Intel's net revenues for the first four months of 2009 totaled $12.6 billion. Using the 2008 gross profit ratio from above, calculate an estimated cost of goods sold and gross profit for the four months. See attachment for data and detail

Calculating gross profit from installment sales - Charter Corporation

Calculating Gross Profit from Installment Sales Charter Corporation, which began business in 2011, appropriately uses the installment sales method of accounting for its installment sales. The following data was obtained for sales made during 2011 and 2012: 2011 2012 Installment sales 362,000 345,000

Operating Income, Profitability & Estimating Operating Cost

Handy-Man Services is a repair-service company specializing in small household jobs. Each client pays a fixed monthly service fee based on the number of rooms in the house. Records are kept on the time and material costs used for each repair. The following profitability data apply to five customers:

Kranbrack Corporation

M.K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company's earnings would grow by 20% this year. Unfortunately, sales have been less than expected for the year, and Gallant

Accounting for self-constructed assets for Trooper Medical Labs

Troopers Medical Labs, Inc. began operations 5 years ago producing stetrics, a new type of instrument it hoped to sell to doctors, dentists, and hospitals. The demand for stetrics far exceeded initial expectations, and the company was unable to produce enough to meet demand. The company was manufacturing its product on equip

Contribution Margin and Risk

1- Controllable margin is used as a refined measure of strategic business unit reporting that is best described as: A. Margins reported to strategic business unit managers related to revenues and costs specifically within the managers' control and responsibility. B. Contribution margin net of controllable fixed costs (those co

Weighted-Average Method for Accounting

Please see the attached file. Boxes underlined in yellow require an answer as well as a formula for the answer using the information provided. Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is add

Indicate whether expenditure should be Capitalized or Expensed

For each of the following items, indicate whether the expenditure should be capitalized (C) or expensed (E) in the period incurred. (a) Improvement (b) Replacement of a minor broken part on a machine. (c) Expenditure that increases the useful life of an existing asset. (d) Expenditure that increases the efficiency and effe

External-Reporting Purposes

In the United States, about one in every four companies uses variable costing for internal reporting purposes. These companies must make adjustments to these reports for external-reporting purposes. Explain what these adjustments are and why they need to be made.

Activity-Based Costing

Activity-Based Costing. Frumerville Hospital has always determined the full cost of serving patients by accounting for the direct and indirect costs of all hospital operations. The hospital uses the step-down method of allocating indirect costs: The costs of nonrevenue producing departments are allocated in sequence

Elected officials

Concerns over the recognition, administrative, and operational lags as well as the concern that discretionary fiscal policy is subject to political biases have caused some economists to believe Congress and the president should do nothing in the face of a recession. Even if they are correct, is it realistic to expect the public

Calculate dividends paid

On January 1, 2010, Metco, Inc., had 264,000 shares of $2 par value common stock issued and outstanding. On March 15, 2010, Metco, Inc., purchased for its treasury 3,100 shares of its common stock at a price of $39.00 per share. On August 10, 2010, 640 of these treasury shares were sold for $45.00 per share. Metco's directors de