Given the extreme health risks, should marketers stop selling cigarettes even though they are legal and demanded by consumers? Should cigarette marketers continue to use marketing tactics that are...
1. Evaluate Nikes response to societal and consumer concerns about its contract manufacturing. 2. What are the challenges facing Nike in the future? Phil Knight and his University of Oregon track...
The Farm-4-Less Tractor Company produces a grain combine (GC) in addition to both a large (LT) and small size tractor (SM). Its production manager desires to produce to customer demand using a mixed...
A. Thomas Magnum began operations as a private investigator on January 1, 2008. The trial balance columns of the Balance Sheet worksheet for Thomas Magnum, P.I. at March 31 are as follows. Other...
At the beginning of July, CD City has a balance in inventory of $3,400. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $2,300,...
(Basic Pension Worksheet) The following facts apply to the pension plan of Boudreau Inc. for the year 2010. Using the preceding data, compute pension expense for the year 2010, as part of your...
Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $469,000. The asset is expected to have a service life of 12 years and a salvage value of $40,000. Instructions (a) Compute...
1. What aspects of Becos benefits program are likely to appeal to Robert? Explain. 2. In todays work environment, what addition benefits might be more attractive to Robert? Explain.
The Rentz Corporation is attempting to determine the optimal level of current assets for the coming year. Management expects sales to increase to approximately $2 million as a result of an asset...
A comparative balance sheet and income statement for Eaton Company follow: During 2008, the company sold some equipment for $18 that had cost $30 and on which there was accumulated depreciation of...
The Soft Toys Company has collected information on fixed and variable costs for four potential plant locations. a. Plot the total cost curves for the four plant locations on a single graph. b....
McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $13,000...
Entrepreneurs Consultants, a state agency, was established to provide consulting services to small businesses. It maintains only a single general fund and accounts for its activities on a modied...
Team Spirit Calendars imprints calendars with college names. The company has fixed expenses of $ 1,095,000 each month plus variable expenses of $ 6.50 per carton of calendars. Of the variable...
Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) y = $0 + $5x Direct labor (variable) y = $0 + $14x Overhead...
1. Could a company even plan for this type of situation? If yes, how? If not, why not? 2. Would goals be useful in this type of situation? What types of goals might a manufacturing company like BMW...
Shannon Corp. had the following balances in receivable accounts at October 31, 2014 (in thousands): Allowance for Doubtful Accounts $52; Accounts Receivable $2,910; Other Receivables $189; Notes...
The year-end adjusted trial balance of Aggies Corporation included the following account balances: Retained Earnings, $230,000; Service Revenue, $900,000; Salaries Expense, $390,000; Rent Expense,...
The following T-accounts represent November activity. Additional Data Materials of $113,600 were purchased during the month, and the balance in the Materials Inventory account increased by $11,000. ...
Selected financial data for Squid Company are as follows: Required a. Compute the following for 2009, 2008, and 2007: 1. Net profit margin 2. Return on assets 3. Total asset turnover 4. DuPont...
Nestl reports beginning raw materials inventory of 3,243 and ending raw materials inventory of 3,904 (both numbers in millions of Swiss francs). If Nestl purchased 16,200 (in millions of Swiss...
Cameron Bly is a sales manager for an automobile dealership. He earns a bonus each year based on revenue from the number of autos sold in the year less related warranty expenses. Actual warranty...
CVP analysis, income taxes The Express Banquet has two restaurants that are open 24-hours a day. Fixed costs for the two restaurants together total $459,000 per year. Service varies from a cup of...
Lame Specialties manufactures, among other things, woolen blankets for the athletic teams of the two local high schools. The company sews the blankets from fabric and sews on a logo patch purchased...
On January 1, 2014, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $372,000. Stinsons book value on that date consisted of common stock of $100,000 and...
(Three Differences, Compute Taxable Income, Entry for Taxes) Havaci Company reports pretax financial income of $80,000 for 2010. The following items cause taxable income to be different than pretax...
Fair Value Option Presented below is selected information related to the financial instruments of Dawson Company at December 31, 2010. This is Dawson Company's first year of operations. (a) Dawson...
Arnold Palmer Hospital one of the nations top hospitals dedicated to serving women and children is a large business with over 2,000 employees working in a 431-bed facility totaling 676,000 square...
The following control procedures are used in Mendy Langs Boutique Shoppe for cash disbursements. 1. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner....
a. Identify the physical control weaknesses depicted in the flowchart for Problem 2. INTERNAL CONTROLS AND FLOWCHART ANALYSIS b. Describe the IT controls that should be in place in thissystem. Sales...
The following information is from the trial balance of Mills Manufacturing Company: Required 1. Manufacturing organizations use asset accounts that are not needed by retail organizations. a. List the...
Best Drugs is a distributor of pharmaceutical products. Its ABC system has five activities: Activity Area Cost Driver Rate in 2013 1. Order processing .........$ 42 per order 2. Line-item ordering...
Following are several decisions that the auditor must make in an audit of a nonpublic company. Letters indicate alternative conclusions that could be made. Required a. Identify the sequence in which...
Maxtor Technology incurred the following costs during the year related to the creation of a new type of personal computer monitor: Salaries ................................ $220,000 Depreciation on...
Ford 10-K a. What are the key cash and liquid asset accounts for Ford? What types of marketable securities does Ford possess? b. What are the critical accounting policies for these accounts? c. What...
1. Of the five global product and communications strategies, which best describes 7-Eleven's approach? 2. On a scale of one to five, to what degree does 7-Eleven adapt its offering in each global...
Supply the missing data in the following cases. Each case is independent of the others. Case 2 3 Direct materials. $6,000 $4,500 $5,000 $3,000 Direct labor... S7,000 $4,000 $3,000 Manufacturing...
Sharp Company has $15,000 to invest. The company is trying to decide between two alternative uses of the funds as follows: Sharp Company uses a 16% discount rate. Required: (Ignore income taxes.)...
Refer to the information in BE312. In BE312, Midshipmen Company borrows $15,000 from Falcon Company on July 1, 2015. Midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on June...
Jason Wu operates Exclusive Limousines, a fleet of 10 limousines used for weddings, proms, and business events in Washington, D. C. Wu charges customers a flat fee of $ 250 per car taken on contract...
The stockholders' equity section of Lachlin Corporation's balance sheet at December 31 is presented here. Instructions From a review of the stockholders' equity section, answer the following...
Zhou Bicycle Company ( ZBC), located in Seattle, is a wholesale distributor of bicycles and bicycle parts. Formed in 1981 by University of Washington Professor Yong- Pin Zhou, the firms primary...
FruTee Corp. makes irrigation sprinkler systems for fruit tree nurseries. FruTees new controller can find only the following partial information for the past year: Compute the unknown values. List...
Ridgecrest Electric manufactures electric motors. It competes and plans to grow by selling high- quality motors at a low price and by delivering them to customers quickly after receiving customers...
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The...
The following information is available for Shanika Company for 2014: Instructions 1. Prepare the 2014 statement of cost of goods manufactured. 2. Prepare the 2014 incomestatement. Inventories...
The following two items appeared on the Internet concerning the GAAP requirement to expense stock options. WASHINGTON, D.C.February 17, 2005 Congressman David Dreier (RCA), Chairman of the House...
Cusick Department Store is located near the Village Shopping Mall. At the end of the company??s calendar year on December 31, 2012, the following accounts appeared in two of its trial balances....
Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has total current assets of $920,000 and total current liabilities of $640,000. As...
1. What do you think about this pairing-up idea? Would you be comfortable with such an arrangement? Why or why not? 2. What personality traits would be most needed for this type of work arrangement?...
On February 15, 2013, the Town of Hillsboro police chiefs administrative assistant is preparing a purchase order to place an order for a new computer. The computer is estimated to cost $1,500. Prior...
Uhura Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. Other data:1. The balance in prepaid insurance is a one-year premium paid on...
Jack and Jill have just had their first child. If college is expected to cost $150,000 per year in 18 years, how much should the couple begin depositing annually at the end of each year to accumulate...
Annual Adjustments Palmer Industries prepares annual financial statements and adjusts its accounts only at the end of the year. The following information is available for the year ended December 31,...
Shelby Company produces three products: product X, product Y, and product Z. Data concerning the three products follow (per unit): Demand for the company's products is very strong, with far more...
The adjusted trial balance of Anderson Cooper Co. as of December 31, 2008, contains the following. Instructions (a) Prepare an income statement. (b) Prepare a statement of retained earnings. (c)...
Jennifer Lopez opened a school for administrative skills called Lopez Office Training and completed the following transactions: a. Contributed the following assets to the business: Cash ...........
Danner Corporation and London Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe tracing devices. Each company depreciates its plant assets using the...
Elizabeth Soltis owns and operates Aunt Ibby's Styling Salon. A year-end work sheet is provided on the next page. Using this information, prepare adjusting entries, financial statements, and closing...
The following transactions apply to Comfort Mattress Sales for 2010. 1. The business was started when the company received $30,000 from the issue of common stock. 2. Purchased mattress inventory of...
Forda Lumber Company owns a 7,000-acre tract of timber purchased in 2000 at a cost of $1,300 per acre. At the time of purchase, the land was estimated to have a value of $300 per acre without the...
Gilliland Airlines is considering two alternatives for the financing of a purchase of a fleet of airplanes. These two alternatives are: 1. Issue 90,000 shares of common stock at $30 per share. (Cash...
Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (8 pounds at $2.50 per pound) ........ $20 Direct labor (3...
Internal Indexes?Dollar-Value LIFO Presented below is information related to Kaisson Corporation for the last 3 years. Compute the ending inventories under the dollar-value LIFO method for 2009,...
Duval Co. issues four- year bonds with a $ 100,000 par value on June 1, 2013, at a price of $ 95,948. The annual contract rate is 7%, and interest is paid semiannually on November 30 and May 31. 1....
The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: 2014 July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, 2014, at a market...
Workplace Products Inc., a wholesaler of office products, was organized on February 1 of the current year, with an authorization of 10,000 shares of preferred 2% stock, $120 par and 250,000 shares of...
Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Tanek is currently...
An assembly line requires two components: gadjits and widjits. Gadjits are produced by center 1 and widjits by center 2. Each Unit of the end item, called a jit-together, requires 3 gadjits and 2...
Use the three-stage model of creativity to analyze Blakelys decision making. What can you learn from her story that might help you be more creative in the future?
Westex Products is a wholesale distributor of industrial cleaning products. When the treasurer of Westex Products approached the companys bank late in the current year seeking short-tern financing,...
On October 3, 2018, Regal Company purchased $3,600 of supplies on account. In Regal's chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21. A. Journalize the...
You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your office, drops a consultant's report on your desk, and...
1. Should this plan be extended to pressers in the other stores? 2. Should other employees (cleaner/spotters, counter people) be put on a similar plan? Why? Why not? If so, how, exactly? 3. Is there...
Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $70,000...
Assume the United States is an importer of televisions and there are no trade restrictions. U.S. consumers buy 1 million televisions per year, of which 400,000 are produced domestically and 600,000...
Linton Company purchased a delivery truck for $34,000 on January 1, 2015. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life...
Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2010. The annual reporting period ends December 31. The trial balance on January 1, 2012,...
Allison Corporation acquired 90 percent of Bretton on January 1, 2016. Of Bretton's total acquisition- date fair value, $60,000 was allocated to undervalued equipment (with a 10-year remaining life)...
When the first Pizza Hut opened its doors back in 1958, it offered consumers one style of pizza: its Original Thin Crust Pizza. Since its modest beginnings, Pizza Hut has established itself as the...
Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl's Doll Shop. Business has been good, but Koehl has frequently run out of cash. This has necessitated late...
Inventoriable Costs Presented below is a list of items that may or may not be reported as inventory in a companys December 31 balance sheet. 1. Goods sold on an installment basis (bad debts can be...
Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,800,000 on March 1, $1,200,000 on June 1, and $3,000,000 on December...
Accounting for Patents, Franchises, and R&D Devon Harris Company has provided information on intangible assets as follows. A patent was purchased from Bradtke Company for $2,500,000 on January 1,...
Conan OBrien Logging and Lumber Company owns 3,000 acres of timberland on the north side of Mount Leno, which was purchased in 2000 at a cost of $550 per acre. In 2012, OBrien began selectively...
The French government announced plans to convert state-owned power firms EDF and GDF into separate limited companies that operate in geographically distinct markets. BBC News reported that Frances...
Value chain and classification of costs, fast food restaurant Burger King, a hamburger fast food restaurant, incurs the following costs: a. Cost of oil for the deep fryer. b. Wages of the counter...
For each of the following, specify whether the foreign direct investment is horizontal or vertical; in addition, describe whether that investment represents an FDI inflow or outflow from the...
As the accountant for Monroe Trucking Company, you are preparing the company's annual return, Form 940 and Schedule A. Use the following information to complete Form 940 and Schedule A on pages 5-48...
Prepare any necessary adjusting entries at December 31, 2015, for Melbourn Companys year-end financial statements for each of the following separate transactions and events. 1. Melbourn Company...
All-Star Automotive Company experienced the following accounting events during 2016: 1. Performed services for $25,000 cash. 2. Purchased land for $6,000 cash. 3. Hired an accountant to keep the...
Indicate whether the following statements are true or false. If the statement is false, explain why. a. If a firm repurchases its stock in the open market, the shareholders who tender the stock are...
Marcus Tube, a manufacturer of high-quality aluminum tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 3% per year,...
Ortiz Companys manufacturing overhead budget shows total variable costs of $198,000 and total fixed costs of $162,000. Total production in units is expected to be 150,000. It takes 20 minutes to make...
Integrative Case 1.1 introduced the industry economics of coffee shops and the business strategy of Starbucks to compete in this industry. Exhibit 1.26 presents balance sheets for Starbucks for the...
Use the following adjusted trial balance of Wilson Trucking Company to prepare the (1) Income statement and (2) Statement of owners equity, for the year ended December 31, 2013. The K. Wilson,...
A new furnace for your small factory will cost $27,000 a year to install and will require ongoing maintenance expenditures of $1,500 a year. But it is far more fuel- efficient than your old furnace...
Identify how the effectiveness of Ritz-Carltons Mystique program might be measured several years later.
Party Wagon, Inc., provides musical entertainment at weddings, dances, and various other functions. The company performs adjusting entries monthly, but prepares closing entries annually on December...
Kasten Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls....