The distinction between exchange and nonexchange revenues is not always obvious. You are the independent auditor of various governments. You have been asked for your advice on how the following transactions should be accounted for and reported. Characteristic of each transaction is ambiguity as to whether it is an exchange or a
Sales of a product are influenced by the salesperson's level of education and gender, as well as consumer income, ethnicity, and wealth. a. Formulate this statement as a multiple regression model (form only, without parameter estimation). b. Specify dummy variables. c. If the effects of consumer income and wealth are no
Questions and worksheet attached. E6: Sales Mix Decision Grady Enterprises manufactures three computer games. They are called Rising Star, Ghost Master, and Road Warrior. The product line data are as follows: Rising Star Ghost Master Road Warrior Current Unit sales demand 20,000 30,000 18,000 Machine Hours
AAA Auto Parts produces mufflers that sell for $75 each. Variable costs are $25, and fixed costs are $25,000. 1. Compute the break-even point in units. 2. Compute the break-even in sales. 3. Find the sales (in units) needed for a before tax profit of $35,000. (Hint: look at the profit as a part of the fixed cost.) 4. U
For each of the following situations, indicate whether the organization should recognize the described contributed services as revenue (offset by a corresponding expense). Briefly justify your response or identify key issues. 3. The Taconic Music Festival, a performing arts association, needed new practice facilities. The
Changes in sales can cause changes in profits. Would the profit change associated with sales changes be larger or smaller if a firm increased its operating leverage? Explain your answer.
The Landis Corporation had 2008 Sales of 100 millions. The balance sheet item that vary directly with sales and the profit margin are as follows : Cash 5% Accounts receivable 15% Inventory 25% Net Fix Assets 40% Accounts Payable 15% Accruals 10% Profit Margin after taxes 6% The dividend pay out rate is 50% of earnin
Http://ci.alamogordo.nm.us/Assets/COA+Document/Finance/Annual+Financial+Statement+FY08.pdf Using the above CAFR answer the following questions: 1. Were any of the government's enterprise funds "profitable" during the year? If so, what has the government done with the "earnings"? Has it transferred them to the general f
1. Incremental Analysis - Consider the production cost information for Santiago's salsa. The company is currently producing and selling 250,000 jars of salsa annually. The jars sell for $4.00 each. The company is considering the price to $3.70. Support this action will increase sales to 300,000 jars. Santiago's Salsa Pro
The CEO of 1995 Auto Sales also is part owner/CEO of Collins-Pine. Collins-Pine (CP) is a wood products company with a very distinct culture of stewardship for the land it manages. When harvesting materials, care is taken to leave the forest canopy intact so regeneration is a natural occurrence. People are valued and treated wit
The future of mobile business depends on finding ways to combine wireless technologies and the Internet. To be successful, these applications must use the most convenient features of both wireless and Internet technologies. In about 300 words, outline a revenue model for a business that sells frequently updated restaurant review
A company has projected the following quarterly sales amounts for the coming year: Sales Q1=$840 Q2=$780 Q3=$950 Q4=$870 A) Accounts receivable at the beginning of the year are $340. They have a 45 day collection period. Calculate the cash collections in each of the four quarters: Beginning Receivables Sales Cash Col
Accounting: What the Numbers Mean, 8th edition; Marshall, McManus and Viele, Irwin McGraw-Hill Problem 7.24 parts A through D. Unearned revenues---subscription fees Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $50 in advance for a one year subscription. Dur
Beginning and ending accounts receivable are $76,000 and $42,000, respectively. Sales for the period total $384,000, of which $40,000 was directly for cash. How much cash was collected from making sales and collecting accounts receivable?
Ducker Industries' projected sales for the first six months of 2004 are given below: Table 1 Jan. $200,000 April $400,000 Feb. $240,000 May $320,000 March $280,000 June $320,000 ? 25% of sales is collected in cash at the time of the sale, 50% is collected in the month following the sale, and th
Millennium Corp, Inc. has a base level of sales of 150,000 units. Sales price per unit is $10.00 and variable cost per unit is $6.50. Total annual operating fixed costs are $155,000, and the annual interest expense is $90,000. (For consistency with answers below, carry all calculations to two decimals.) a) What is base level
LaRussa Inc. is preparing its annual budgets for the year ending December 31, 2011. Accounting assistants furnish the data shown below. Product Product JB 50 JB 60 Sales budget: Anticipated volume in units
Craig received a cash distribution of $50,000 in liquidation of half of his one-fourth interest in White Family Partners. His tax basis in his partnership interest prior to the distribution was $35,000. The distribution was not a disproportionate distribution and the partnership had no liabilities. A. How much gain or loss mu
I am not sure where to start with this problem... If you were to draw a scatter plot of the number of women in the work force versus number of Christmas trees sold in the United States annually between 1930 and the present, you would find a strong positive correlation. Why do you think this would be true? Does one cause t
Optical Supply Company offers credit terms of 2/10, net 60. If Optical Supply is considering a change in its credit terms to one of those indicated, explain whether the change should increase or decrease sales. (a) 2/10, net 30, (b) net 60, (c) 3/15, net 60, (d) 2/10, net 30, 30 extra.
Optical Supply Company offers credit terms of 2/10, net 60. If Optical Supply is considering a change in its credit terms to one of those indicated below, explain whether the change should increase or decrease sales. (a) 2/10, net 30 (b) net 60 (c) 3/15, net 60 (d) 2/10, net 30, 30 extra.
1) A company is trying to determine the optimal level of advertising expenditures. Based upon past experience and test markets, please find below the relationship between sales revenue and advertising expenditures. The average gross margin percent (gross margin/revenue) is shown in parentheses for that level of sales. The margi
Lamar Lumber Company has sales of $10 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $2 million. What is Lamar's DSO, what would it be if all customers paid on time, and how much capital would be released if Lamar could take actions that led to on-time payments?
Which of the following terms addresses the problem when introducing a new product line could steal sales away from an existing product line? a. Enhancement b. Cannibalization c. Payback d. Discounting e. None of the above
Light City sells its network browsing software for $20 per copy to computer software distributors and allows its customers 1 month to pay their bills. The cost of the software is $13.50 per copy. The industry is very new and unsettled, however, and the probability that a new customer granted credit will go bankrupt within the ne
Is there generally a set amount of time that items are placed in consignment with another company or does it just stay in their stock until sold. And if there is a time frame for the items what happens if the items are not sold within that time frame. Will the company holding the items be charged finance charges on these items
At December 31, 2007, S's had 1,000 gift certificates outstanding, which had been sold to customers during 2007 for $50 each. S's operates on a gross margin of 60% of its sales. What amount of revenue pertaining to the 1,000 outstanding gift certificates should be deferred at December 31, 2007? a. $0. b. $20,000. c. $30,000.
Locust Software sells computer training packages to its business customers at a price of $101. The cost of production (in present value terms) is $96. Locust sells its packages on terms of net 30 and estimates that about 7 percent of all orders will be uncollectible. An order comes in for 20 units. The interest rate is 1 percent
Smith Company sells a single product at a selling price of $30 per unit. Variable costs are $12 per unit and fixed costs are $41,400. Smith's break even point in either units or sales dollars is: a) 1,380 units b) $69,000 c) 3,450 units d) $207,000 e) none of the above
InterClean, Inc. has just merged with EnviroTech and, as a result, has taken on a new strategic direction. The company will no longer sell only cleaning products, but will also provide full- service cleaning solutions for organizations in the health care industry. As a midlevel sales manager, select new members for your sales te