Please see the attached file for the case study to answer the following: 1. Critically evaluate which of the 5 projects the CFO should accept. The answer should explain and where appropriate illustrate how each of the following considerations influenced your decision: a. NPV an IRR b. Size of the project c. Cannibalizatio
Interim reporting: A. What are accounting issues related to reporting quarterly? B. What problem does quarterly (interim) reporting create for income taxes? C. What does GAAP require? D. Research attempts to predict next year's income from interim reports, but rarely with success. What is it so hard to pred
If you were a small business owner, would you implement an activity-based costing system? What potential benefits or pitfalls do you foresee? Give an example of an activity based costing system.
Please help me with this problem. Prill Co has the following: Current Assets:.....................year 1...............year 2 Cash and marketable securities 160,000 ....150,000 Accounts receivable, net .......175,000... ....170,000 Inventory ..........................140,000 .............150,000 Total current assets ....
Exercise 1-9) Zoya Arbiser, regional manager of Gold Medal Sports Shops, is reviewing the results of 15 stores in her region. Store managers are moved annually. Each store manager's income is very dependent on the direct contribution margin of that store. For the past year, Store 9 has been managed by a person who has operate
1. For what kinds of companies is financial slack most valuable? Are there situations in which financial slack should be reduced by borrowing and paying out the proceeds to the stockholders? 2. Describe some alternative measures of a firm's overall performance. What are their advantages and disadvantages? In each case discuss
The ledger of Duggan Rental Agency On March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. An analysis of the accounts shows the following. 1. The equipment depreciates $250 per month. 2. One-third of the unearned rent was recognized as during the quarter. 3
Prepare a correct trial balance. (Note it may be necessary to add one or more accounts to the trial balance.) The ledger of Duggan Rental Agency On March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. An analysis of the accounts shows the following. 1. The e
Intermediate Accounting E-3-5 Adjusting entries. It may be necessary to add one or more accounts to the trial balance. E-3-8 Adjusting entries. Prepare the adjusting entries as august 31, 2014
1. Compare typical compensation and incentive arrangements for (a) top management, for example, the CEO or CFO, and (b) plant or division managers. What are the chief differences 2. Suppose that East Corporation has issued voting and nonvoting stock. Investors hope that holders of the voting stock will use their power to vote o
1. Explain how each of the following actions or problems can distort or disrupt the capital budgeting process. a. Overoptimism by project sponsors. b. Inconsistent forecasts of industry and macroeconomic variables. c. Capital budgeting organized solely as a bottom-up process. 2. New-model commercial airplanes are much mo
CMA Canada's 2020 Vision document states, "major activities that will define the management accountant's role in 2020....include strategic risk management that identifies and responds to threats, challenges and opportunities; forward-looking financial and performance management fueled by: a. technology-enabled data analysis appl
Special Order - Short Term Decisions Consider a firm that has a capacity of 100,000 units. They cannot change this capacity in the short run. A potential customer has requested a special order of 10,000 units (one-time order) at a price of $24 each. There is no sales commission on this order since a sales rep was not invol
If you were an investor with a bunch of money, would you invest in Wal-Mart? How do you think it will be doing in the future? Why?
Investors go to great lengths so that they can predict the future of a stock and also analyze the present performance. Sometimes they end up making just what someone else would make that came in and said "I have a feeling about this company". If we could truly predict stock price, that would change the whole nature of the mark
When a firm uses cost of capital to evaluate all projects, it would overestimate the value of high risk projects. The cost of capital is usually an estimate of return for average-risk projects. When evaluating high risk projects, firm should discount the project cash flows with a higher cost of capital. An example is Microsoft a
1. Find a low-risk stock - Walmart or Kellogg would be a good candidate but any are welcome. Use monthly returns for the most recent three years to confirm that the beta is less than 1.0. Now estimate the annual standard deviation for the stock and the S&P index, and the correlation between the returns on the stock and the i
I need help with a self-review study questions. This is the text we are using. Thomas P. Edmonds, Bor-Yi Tsay, and Phillip R. Olds., Fundamental Managerial Accounting Concepts, 6th ed., McGraw-Hill Erwin (2011). The CFO of Advo Corporation is considering two investment opportunities. The self-study review problems on
The mixing department is the third department in MZS Inc. factory. During January, there were 4,000 units of beginning inventory in the mixing department, and 60,000 units were transferred in from the prior process. There were 8,000 units in ending inventory. The transferred in cost in the beginning inventory was $170,000, and $
Please show your steps so I know where I am making my mistakes. See attached file.
I am having problems understanding how to complete break even analysis with the attached problem. I can't understand how to build or answer the questions of the assignment. Can you help?
Review financial statements for two years for Apple and Microsoft. Make a comparison of the following items and note trends. - Revenues - Cost of good sold - Accounts receivable - Accounts payable - Inventory Discuss and interpret the changes over the two-year period. Which company is the best performer and why? How is t
Record the following simple transactions in the Debt Service Fund of Ledford County. 1. The county issued $50,000,000 of refunding bonds at par to provide most of the financing to refund $60,000,000 of outstanding bonds. 2. The county transferred $5,000,000 from the General Fund to the fund from which the outstanding bonds ar
1. Balanced Scorecard Balanced scorecard is one of those management fads that will disappear several years in the future. In addition, managerial accounting should be about the numbers and not subjective criteria. Please support or refute the above statements. 2. Allocation of Costs, or Not Information technology costs are
All solutions must be in Excel Format; please show how solutions were derived. Please see attached.
1. How does the accounting write-off of design and development costs as current expenses affect managers' incentives to incur these costs? 2. Explain the importance of separation of duties to a system of internal controls. 3. Explain inventory overstatement. A merchandising company has asked you to advise it on how to de
Multinational corporations can use transfer pricing to adjust costs in transactions involving the transactions between divisions in different countries. There may be a tax consequence. Is this ethical ? Is this good business?
Rossi /Company has the following projected account balances for June 30, 20x9. Accounts payable: $60,000 Accounts receivable:$120,000 Depreciation, factory: $24,000 Inventories (5/31 & 5/30): $180,000 Direct materials used: $210,000 Office Salaries: $92,000 Insurance, factory: $4,000 Plant Wages: $140,000 Bonds Payab
The bookkeeper for Lowell's Country Music Bar left this incomplete balance sheet. Lowell's working capital is 90,000 and its debt to assets ratio is 40 percent. Complete the balance sheet by supplying the missing amounts. (see attached)
Please provide some ideas for discussion about managerial accounting and how GAAP statements are not sufficient.