Read the Frantek, Inc. case (Case C10-10). Write a 150 word paper in your own words recommendations as to how Frantek should resolve issues relating to revenue recognition, inventory valuation, and liability recognition and classification. Case 10 - 10 FRANTEK, INC. Revenue Recognition, Inventory Valuation, and Liability R
1) If the Allowance for uncollectible Accounts has a credit balance of $900 at the end of the current year(prior to adjustment). An analysis of the accounts in the customers Ledger indicates uncollectible accounts of $16,000. The adjusting entry would require a debit to: A) uncollectible account expense for $15,100 B) unco
27. Acme Corporation (a U.S. company located in Sarasota, Florida) has the following import/export transactions in 2004: March 1 Bought inventory costing 50,000 pesos on credit. May 1 Sold 60 percent of the inventory for 45,000 pesos on credit. August 1 Collected 40,000 pesos from customers. September 1 Paid 30,000 pe
Assume that Product Z is made of two units of A and four units of B. A is made of three units of C and four D. D is made of two units of E. Lead times for purchase or fabrication of each unit to final assembly are: Z takes two weeks; A, B, C, and D take one week each; and E takes three weeks. Fifty units are required in Period 1
28. Asphalt acquired 70 percent of Broadway on June 11, 1993. Based on the purchase price, an intangible of $300,000 was recognized and is being amortized at the rate of $10,000 per year. The 2004 financial statements are as follows: Asphalt Broadway Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Describe a JIT principle used at a past or present workplace or one with which you are personally familiar. Focus on the key areas of JIT. Have the results been positive or negative? Detail what improvements or changes would result in a more effective program. Objective: Evaluate the quality control tools used to analyze and
Relationships within Periodic Inventory Systems This exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts. A net loss in the righ
Piggly Wiggly Grocery Store 1. What is the physical flow of merchandise into the store, and what documents are used in connection with this flow? 2. What documents are prepared when merchandise is sold? 3. Does the store keep perpetual inventory records? If so, does it keep the records in units only, or does it keep t
1. What is the physical flow of merchandise into the store, and what documents are used in connection with this flow? 2. What documents are prepared when merchandise is sold? 3. How are financial statements generated for this store? 4. What method does the company use to cost its inventory for financial statements?
Retail Research Activity Imagine if you had a local retail business-a grocery, clothing, book, music, or appliance store-and answer the following questions: ? What is the physical flow of merchandise into the store, and what documents are used in connection with this flow? ? What documents are prepared when merchandise i
Use any data to answer the following question: Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: ? Sales are budgeted at $XXX for November, $YYY for December, and $ZZZ for January. ? Collections are expected to be
(See attached file for full problem description) --- BRIEF EXERCISE 1-1 Classifying manufacturing Costs (LO1) Your required bout, INC., assembles custom built sailboats form components supplied by various manufacturers. The company is very small and its assembly shop and retail store are housed in a Gig Harbor, Washin
1. In the +, -, 0 set of statements, I said assume the firm is a "going concern.' What is meant by the term "going concern?" 2. Assuming a current ratio of more than 1:1, what causes the current ratio to increase? 3. We all know what "window dressing is," from the +, -, 0 problem explain how a firm can "window dress'
Standard Pump Corporation recently won a $14 million contract with the U.S. Navy to supply 2000 custom-designed submersible pumps over a period of four months. The contract calls for the delivery of 200 pumps at the end of May, 600 pumps at the end of June, 600 pumps at the end of July, and 600 pumps at the end of August. Standa
Using Excel, Determine the following: The Western Jeans Company purchases denim from Cumberland Textile Mills. The Western Jeans Company uses 35,000 yards of denim per year to make jeans. The cost of ordering denim from the textile company is $500 per order. It costs Western $0.35 per yard annually to hold a yard of denim
Hayes Electronics assumes with certainty that the ordering cost is $450 per order and the inventory carrying cost is $170 per unit per year. However, the inventory model parameters are frequently only estimates that are subject to some degree of uncertainty. Consider four cases of variation in the model parameters as follows:
Please help me study by answering the following: Wedbing Corp has an opportunity to embark on an extensive one-year project requiring a total outlay of $ 10,000,000 over the course of the undertaking. Their cost of capital is only 5.75% at this time and should remain stable throughout the duration of the project. Wedbing has
A store has collected the following information on one of its products (10 pts): Demand = 10,000 units/year Standard deviation of weekly demand = 25 units Ordering costs = $30/order Holding costs = $4/unit/year Cycle-service level = 95% (z for 90% = 1.28) Lead time = 2 weeks Number of weeks per year = 5
2. One unit of A is made of two units of B, three units of C, and two units of D. B is composed of one unit of E and two units of F. C is made of two units of F and on unit of D. E is made of two units of D. Items, A, C, D, and F have one-week lead times; B and E have lead times of two weeks. Lot-for-lot (L4L) lot sizing is used
What are the financial problems which poor inventory management can cause in a HCO? What are the appropriate solutions to resolve or prevent such problems? In your response, please reference the material from McLean, Robert A. (2003). Financial Management in Health Care Organizations (2nd ed.). Albany, NY: Delmar Publishers.
A manufacturer of wooden furniture carries in its warehouse only one type of inventory: lumber. Following are various costs that may or may not be associated with the inventory: (see chart in attached file) a. What is the inventory carry cost rate (I) for the total inventory stored? b. What is the average cost of proce
A beer distributor reorders when a stock item drops to a reorder point. Reorder points include statistical safety stocks with the service level set at 95%. For MGD beer, the forecast usage for the next 2 weeks is 500 cases and the standard deviation of demand has been 137 cases (for 2 week period) Purchase lead time is one week
(See attached file for full problem description) --- A company produces and stocks computer printers in its finished-goods warehouse. These 'demand during lead time' (DDLT) historical data are believed to be representative of future demand for one printer model: Actual DDLT Frequency Actual DDLT Frequency 0-29 0 70-79 0
Aretail company begins operations late in 2000 by purchasing $600,000of merchandise. There are no sales in 2000. During 2001 additional merchandise of $3,000,000 is purchased .Operating expenses(excluding management bonuses)are $400,000 and sales are $600,000. The management compensation agreement provides for incentive bonuses
Could someone just check our figures? We were confused on using the average inventory for the inventory conversion period. All we had was a value for inventories.
Of the inventory items listed below, which would probably be class A items if an associate organzied the list by ABC analysis? Item # Quantity per year Unit Price 109 6 $1,000.00 083
All sales of Dunn's Building Supplies (DBS) are made on credit. Sales are billed twice monthly on the tenth of the month for the last half of the prior month's sales and on the twentieth of the month for the first half of the current month's sales. The terms of all sales are 2/10, net 30. Based on past experience, the collecti
You keep looking over the financials to see where your analysis is wrong- but you can't see any problems-it just looks like inventory is getting larger and larger, but you know that you haven't seen growth in the levels of inventory that the financials seem to be indicating. You start to wonder, as the controller of the company
Scott Corporation, a furniture store, was formed on January 1, 20x8, when Scott issued its no-par common stock for $300,000. Early in January, Scott made the following cash payments: A. $150,000 for equipment B. $120,000 for inventory (1,000 pieces of furniture) C. $20,000 for 20x8 rent on a store building In February,
Please arrange the following stock items into Logical A,B, or C classes. Part Number Last Year Demand Unit Price N2 18000 $ 14.00 N3 300 300.00 N6