g skills regarding screening and preference methods to decide on the best system for the company. Your boss is a little old-school, and when you mention some of the things you learned in managerial accounting, he says, “Discounted c
Q: At the end of the first pay period of the year, Sofia earned $5,700 of salary. Withholdings from…
A: Net pay is the amount if money that remains distributable to a worker after deductions from gross…
Q: A private accountant is an accountant whose services may be hired on a fee basis by individuals or…
A: A private accountant is educated to execute business transactions like billings and accounts…
Q: Please calculate capital allowance using declining balance method with the following information:…
A: In the context of the given question, we compute the allowances at the rate applying to the…
Q: Unruh, Grey, and Carter are partners with capital balances of P80,000, P200,000, and…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: What are the ethical and legal implications of using accounting practices such as the book-and-hold…
A: Corporate earnings are the profits of a corporation after all expenditures have been paid. Earnings…
Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note:…
A: solution introduction This problem is related to the compound interest The payment is made at the…
Q: Assume Rabbit Corporation (calendar year end) has 2021 taxable income of $500,000 for purposes of…
A: Depreciation is considered as the method of allocating the cost of tangible asset over its useful…
Q: E-QMMay 50.2012 a fady manugacturing engineer loaned 5, 000 in fhe pank fr the expainon of'her…
A: Ordinary simple interest is calculated as under: = (Principal × Rate × Time) ÷ 100
Q: The FICA tax rates for the self-employed are: a.6.2% (OASDI) and 2.9% (HI). b.6.2% (OASDI) and 1.45%…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: A company declared a cash dividend on its common stock in December 2020, payable in January 2021.…
A: GIVEN A company declared a cash dividend on its common stock in December 2020, payable in January…
Q: The following information is available for Zhang Company: Units Item Beginning inventory 100 First…
A: Solution... Cost of goods available for sale = $2,840 Units available for sale = 500
Q: At December 31, 2020 and 2021, Funk & Noble Corporation had outstanding 1,000 million shares of…
A: Formula: Earnings per share = (Net Income - Preferred dividends) / No. of common shares outstanding…
Q: Harlander Corporation leased industrial equipment to American Manufacturing on January 1, 2019. The…
A: A loan amortization schedule is a comprehensive table of periodic loan payments that shows the…
Q: An auditor reads management's commentary included in a county's comprehensive annual financial…
A: Ans. In the above case mentioned, the auditor determines that the financial statements do not…
Q: PT Angkasa which is located at Jalan Angkasa Pura No.234 Jakarta, on May 1, 2019 established a petty…
A: Petty cash fund: Petty cash fund is a type of fund maintained by a company for the purpose of…
Q: Tart Restaurant Holdings, Incorporated began the year with a retained earnings balance of $950,000.…
A: Solution.. Retained earnings at the beginning = $950,000 Net loss = $20,000 Dividend = $14,000…
Q: Required: 4. Problem 4 - How much cash will go to the first rank creditors? 5. Problem 4 - How much…
A: We are given the balance sheet of Jody, Kane and Lark as on May 1, 2016 just before liquidation. The…
Q: Tuao, employs Amelia Rodriquez as Branch Manager and Mary Gonzales as her sales assistant. The…
A: Internal control is a process, performed by a board of directors of business, management and other…
Q: cations established the following standard price and costs for a hardcover picture book that the…
A: Flexible budget is always prepared for actual units Formula = Actual units * standard variable…
Q: Harrison Co. purchases 5,000 of the 50,000 outstanding ordinary shares of Taylor, Inc for £500,000…
A: Formula: Ending investment value = Beginning Investment value + Net income - Dividends
Q: Missing information for BL For each independent case, fill in the missing figures. Case A Case B…
A: Concept of Labour Variances
Q: On January 1, 2021, Flour D Company acquired for P1,200,000 the entireP1,000,000 12% bond issue of…
A: Bond Valuation For the case of investment of Bond which can be determined whether the bond is issued…
Q: A corporation existing in fact but not in law Choices; De facto corporation De jure corporation…
A: De facto corporation refers to the existence of the company in reality but not recognised by law. De…
Q: How should a "gain" from the sale of treasury stock be reflected when using the cost method of…
A: ANSWER It will be recorded as a paid-in capital from treasury stock. Although the company made a…
Q: What is the tax liability (as a percentage of taxable income) if the customary deductions are taken…
A: Taxable income is the income on which a corporation have to pay tax to the government as per the tax…
Q: Prepare journal entries to record each of the following transactions of a merchandising company. The…
A: Date General Journal Debit Credit Nov'5 Inventory (1,500 units X $ 40 per unit) $ 60,000…
Q: Following particulars have been obtained from the accounts of a company. i) Remuneration of Managing…
A: Net profit for calculation of managerial remuneration is calculated by adjusting all the items…
Q: )How much is the investment balance to be presented byJJCin December 31, 2023? d)How much is the…
A: On January 1, 2022, JJC acquired 30% of Chiyo Company’s voting shares for P10,000,000. Half of the…
Q: KAM Limited manufactures two type of machine: Agro and Farm. The weekly production is 1,500 units of…
A: ABC or Activity Based Costing Method is a method of allocation of production overheads cost among…
Q: Smith Wesson Net income $10,000 $100,000 Net sales 50,000 400,000 Calculate the profit margin ratio…
A: Lets understand the basics. Profit margin is a margin generated from the sales. It is a comparison…
Q: Problems 827 Wal-Mart Stores, Inc. Target Corporation Total assets Total stockholders' equity…
A: Solution:- a)1-Calculation of Current ratio as follows under:-
Q: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is…
A: Straight Line Method is a method where the Depreciable cost of an Assets is charged uniformly over…
Q: esaki Express, a national package delivery service, charges a base price for overnight delivery of…
A: Here the accounting concept of costing will have to be considered. Shipping charges will include…
Q: The COVID-24 Food Kitchen provides hot meals to homeless and low-income individuals and families. It…
A: Non-profit organization are those business entities who work for the betterment of the society by…
Q: Farmington Corporation began the year with a retained earnings balance of $20,000. The company paid…
A: Introduction: Retained Earnings: Retained Earnings are share holders funds. Part of profit is…
Q: A company reports the following beginning inventory and two purchases for the month of January. On…
A: Under Perpetual LIFO Method, value of ending inventory is calculated assuming that latest bought…
Q: A certain marble mine property has an estimated life of 30 years at a projected annual output of…
A: Present Value- The present value of a sum of future money at a given rate of interest is the current…
Q: The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common…
A: For producing any additional product, only variable production cost per unit is incurred. So in case…
Q: Sheridan Corporation, an amusement park, is considering a capital investment in a ne exhibit would…
A: Capital Investment Capital investment is the expenditure of funds to support a company's long-term…
Q: Diego Company paid $186,000 cash to acquire a group of items consisting of land appraised at $53,000…
A: Formula: Cost allocated to Land = Total amount paid x Appraisal value of Land / Total Appraisal…
Q: In 7 years Harry and Sally would like to have $20,000 for a down payment on a house. How much should…
A: A down payment seems to be a monetary payment made at the start of a purchase deal. It is frequently…
Q: Presented below are relevant extracts from Tank Corporation’s statement of financial position as of…
A: The following important points explain the adjustment to be done to arrive at the required adjusted…
Q: Denver, Incorporated, has sales of $27 million, total assets of $24.9 million, and total debt of…
A: Formula: Profit margin = Net income / Sales value
Q: (a) All non-current assets accounts. (b) Accumulated depreciation accounts for both assets. (c)…
A: Accumulated depreciation is the depreciation which have been a cumulative balance of depreciation…
Q: Lindy Company's auditor discovered several errors. No errors were corrected during 2020. The errors…
A: Prepaid insurance means the insurance amount is paid in advance. Adjustment of prepaid insurance…
Q: You decide to start selling Stress Relief Aromatherapy Eucalyptus and Spearmint Candles. The label…
A: Copyrights are the assets which are intangible in nature and gives the right to the owner to use it…
Q: d. Assets minus liabilities. e. The financial statement indicating the profitability of the business…
A: Solution:- d) Discussion of term Asset minus Liabilities as follows under:-
Q: Subscription receivable and other receivables from sale of shares which are collectible currently…
A: Given statement Subscription receivable and other receivables from sale of shares which are…
Q: 1.Suppose a construction company has an inventory of 1 million board ft of lumber purchased as…
A: Inventory means the amount of stock which is held for used in production or for resale purpose.…
Q: Schedule M-1, Reconciliation of Income per Books With Income per Return, reconciles financial net…
A: Schedule M-1 is the section of Form 1065 - U.S. Return of Partnership Income where the entity…
You begin a new job at Cabrera Medical Supplies. The company is considering a new accounting system, with an initial investment of about half a million dollars for new software and hardware. You are excited for the opportunity to apply your
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose that a company called Futuristics, Inc hires you to work in Supply Cha Management. Your new manager sets up a meeting to discuss the Surfers, Inc. account. The meeting opens with the manager stating, "I just reviewed the financial report on Surfers, Inc. It really doesn't cost much to serve them, does i Which of the following would be an appropriate response to the manager's statement? Traditional accounting methods are perfect to help us make decisions about serving the Surfers, Inc. account Activity-based costing would be better to report the Surfers, Inc. results to the financial community Traditional cost accounting gives us a good measure for comparing by customer Activity-based costing could better show us how much it really costs to serve Surfers, Inc. Activity-based costing takes depreciation into account to enable us to know when to replace machineryYou have joined the companies finance team couple of months ago and went through a series of on job rotation and training. Today, the team welcomes a new member and your supervisor asks you take care of the new employee’s onboarding to the team. In particular, your supervisor asks you to tackle the following issues: 1. Describe the cash flows between a firm and its stakeholders. 2. The three fundamental decisions the finance team is concerned with, and how do they affect the firm’s balance sheet? 3. Explain why profit maximization is not the best goal for a company. What is an appropriate goal? 4. What are some of the external and internal factors that affect a firm’s stock price? What is the difference between these two types of factors? 5. Identify the sources of agency costs. What are some ways a company can control these costs? 6. Give an example of a conflict of interest in a business setting, other than the one involving the real estate agent discussed in the text.Consider the following conversation between Leonard Bryner, president and manager of a firm engaged in job manufacturing, and Chuck Davis, certified management accountant, the firms controller. Leonard: Chuck, as you know, our firm has been losing market share over the past 3 years. We have been losing more and more bids, and I dont understand why. At first, I thought that other firms were undercutting simply to gain business, but after examining some of the public financial reports, I believe that they are making a reasonable rate of return. I am beginning to believe that our costs and costing methods are at fault. Chuck: I cant agree with that. We have good control over our costs. Like most firms in our industry, we use a normal job-costing system. I really dont see any significant waste in the plant. Leonard: After talking with some other managers at a recent industrial convention, Im not so sure that waste by itself is the issue. They talked about activity-based management, activity-based costing, and continuous improvement. They mentioned the use of something called activity drivers to assign overhead. They claimed that these new procedures can help to produce more efficiency in manufacturing, better control of overhead, and more accurate product costing. A big deal was made of eliminating activities that added no value. Maybe our bids are too high because these other firms have found ways to decrease their overhead costs and to increase the accuracy of their product costing. Chuck: I doubt it. For one thing, I dont see how we can increase product-costing accuracy. So many of our costs are indirect costs. Furthermore, everyone uses some measure of production activity to assign overhead costs. I imagine that what they are calling activity drivers is just some new buzzword for measures of production volume. Fads in costing come and go. I wouldnt worry about it. Ill bet that our problems with decreasing sales are temporary. You might recall that we experienced a similar problem about 12 years agoit was 2 years before it straightened out. Required: 1. Do you agree or disagree with Chuck Davis and the advice that he gave Leonard Bryner? Explain. 2. Was there anything wrong or unethical in the behavior that Chuck Davis displayed? Explain your reasoning. 3. Do you think that Chuck was well informedthat he was aware of the accounting implications of ABC and that he knew what was meant by cost drivers? Should he have been well informed? Review (in Chapter 1) the first category of the Statement of Ethical Professional Practice for management accountants. Do any of these standards apply in Chucks case?
- Your answer is partially correct. As a new intern for the local branch office of a national brokerage firm, you are excited to get an assignment that allows you to use your accounting expertise. Your supervisor provides you with the spreadsheet below, which contains data for the most recent quarter for three companies that the firm has been recommending to its clients as "buys." Each of the companies' returns on assets has outperformed their industry cohorts in the past. But, given recent challenges in their markets, there is concern that the companies may experience operating challenges and lower earnings. (All numbers in millions, except return on assets.) Company Sprint Nextel Washington Mutual E* Trade Financial Fair Value of Company $36,351 11,582 Loss on Impairment Account Titles and Explanation Goodwill 1,628 eTextbook and Medial Book Value (Net Assets Including Goodwill) $51,201 23,941 4,024 Carrying Value of Goodwill $30,618 9,052 2,015 (c) Estimate the amount of goodwill…Assume that you have finished your MBA program and have applied for a position in the Financial Accounting Department of a large multinational company. The company is struggling with its accounting reporting matters and several accounting reports are under regulatory scrutiny. In the interview board, the recruitment committee members have asked you the following questions. What have you learnt in the BUS 505 course relating to financial accounting? How you can contribute the Financial Accounting Department of this company if you are recruited?You work as an accountant for a small land development company that desperately needs additionalfinancing to continue in business. The president of your company is meeting with the manager of alocal bank at the end of the month to try to obtain this financing. The president has approached youwith two ideas to improve the company’s reported financial position. First, he claims that because abig part of the company’s value comes from its knowledgeable and dedicated employees, you shouldreport their “Intellectual Abilities” as an asset on the balance sheet. Second, he claims that by reporting the company’s land on the balance sheet at its cost, rather than the much higher amount that realestate appraisers say it’s really worth, the company is understating the true value of its assets.Required:1. Thinking back to Chapter 1, why do you think the president is so concerned with the amountof assets reported on the balance sheet?2. What accounting concept introduced in Chapter 2 relates to the…
- Assume you are the management accountant for the Foleo Group. James and Leon have called you and the CFO into a meeting to discuss concerns they have with the number of SliFones that are being returned by customers under warranty. They have pulled some numbers from the accounting system and elsewhere regarding not only the warranty costs, but also other expenses associated with the quality of the phones for the current year. The directors have handed you the below costs and asked you to look into why faulty SliFones are being returned by customers. \table[[Quality Activity,\table[[Cost of Quality],[Activity]]],[Testing phones during production processes,$25,000This is an individual assignment. Everyone needs to work on the firm that your team chooses [prefer simple business] for your industry analysis. Follow my class video, do the following: 1. compute your company's free cash flow for the past 3 years. This requires you to compute each of the components in the FCF. Compare your FCF for the most recent year to that reported from the barchart website. Are you close? Explain why you cannot get close to it. Note for MSFT that I did in class, deferred tax is a big deal, it may not be a problem for you. NOPAT = EBIT - tax. Either find the line for tax, or do tax = EBT-NI. Also check their cash flow statement and that should give you a clue of what to include. 2. do a free cash flow model to value your stock for next year. Is your price close to the current stock price? If not, what could be the reason? 3. do a sensitivity table by varying terminal growth g and the WACC. Upload your excel file with a sheet explaining your results. Always…Psst – Have some ideas? You’re in charge of accounting at a small company. Your boss stopped you in the hallway and asks you for your thoughts. It’s been a rough year and the financial statements aren’t going to look great. Is there something you can do or suggest to make things look better? Your boss has heard about companies that ‘cook the books’ or do other things to make things better. Maybe you could do the same?
- Assume that you have finished your MBA program and have applied for a position in the Financial Accounting Department of a large multinational company. The company is struggling with its accounting reporting matters and several accounting reports are under regulatory scrutiny. In theinterview board, the recruitment committee members have asked you the following questions. i. How can you contribute the Financial Accounting Department of this company if you are recruited?Bernice Mountaindog was glad to be back at Sea Shore Salt. Employees were treated well. When she had asked a year ago for a leave of absence to complete her degree in finance, top management promptly agreed. When she returned with a honors degree, she was promoted form administrative assistant (she had been secretary to Joe-Bob Brinepool, the president) to treasury analyst.Bernice thought the company’s prospect were good. Sure, table salt was a mature business, but Sea Shore Salt had grown steadily at the expense of its less well known competitors. The company’s brand name was an important advantage, despite the difficulty most customers had in pronouncing it rapidly.Bernice started work on January 2, 2009. The first 2 weeks went smoothly. Then Mr. Brinepool’s cost of capital to other managers. The memo came as a surprise to Bernice, so she stayed late to prepare for the questions that would surely come the next day. The company’s bank charged interest at current market rates, and the…Consider the following conversation between Gary Means, manager of a division that produces industrial machinery, and his controller, Donna Simpson, a certified management accountant and certified public accountant: Gary: Donna, we have a real problem. Our operating cash is too low, and we are in desperate need of a loan. As you know, our financial position is marginal, and we need to show as much income as possibleand our assets need bolstering as well. Donna: I understand the problem, but I dont see what can be done at this point. This is the last week of the fiscal year, and it looks like well report income just slightly above breakeven. Gary: I know all this. What we need is some creative accounting. I have an idea that might help us, and I wanted to see if you would go along with it. We have 200 partially finished machines in process, about 20% complete. That compares with the 1,000 units that we completed and sold during the year. When you computed the per-unit cost, you used 1,040 equivalent units, giving us a manufacturing cost of 1,500 per unit. That per-unit cost gives us cost of goods sold equal to 1.5 million and ending work in process worth 60,000. The presence of the work in process gives us a chance to improve our financial position. If we report the units in work in process as 80% complete, this will increase our equivalent units to 1,160. This, in turn, will decrease our unit cost to about 1,345 and cost of goods sold to 1.345 million. The value of our work in process will increase to 215,200. With those financial stats, the loan would be a cinch. Donna: Gary, I dont know. What youre suggesting is risky. It wouldnt take much auditing skill to catch this one. Gary: You dont have to worry about that. The auditors wont be here for at least 6 to 8 more weeks. By that time, we can have those partially completed units completed and sold. I can bury the labor cost by having some of our more loyal workers work overtime for some bonuses. The overtime will never be reported. And, as you know, bonuses come out of the corporate budget and are assigned to overheadnext years overhead. Donna, this will work. If we look good and get the loan to boot, corporate headquarters will treat us well. If we dont do this, we could lose our jobs. Required: 1. Should Donna agree to Garys proposal? Why or why not? To assist in deciding, review the corporate code of ethics standards described in Chapter 1. Do any apply? 2. Assume that Donna refuses to cooperate and that Gary accepts this decision and drops the matter. Does Donna have any obligation to report the divisional managers behavior to a superior? Explain. 3. Assume that Donna refuses to cooperate; however, Gary insists that the changes be made. Now what should she do? What would you do? 4. Suppose that Donna is 63 and that the prospects for employment elsewhere are bleak. Assume again that Gary insists that the changes be made. Donna also knows that his supervisor, the owner of the company, is his father-in-law. Under these circumstances, would your recommendations for Donna differ?
