The following are selected transactions of Graves Company. Graves prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Ally Company, $30,000, terms 2/10, n/30....
During 2010, George Winston Corporation spent $170,000 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2010,...
Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as a raw material by manufacturers of plastic goods around the U. S. SP currently operates four manufacturing centers in...
What are the advantages and disadvantages of Wahoos Fish Tacos slow growth philosophy of franchise expansion?
ShurShot Sports Inc. manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2014, the company reported the following operating results while operating at...
Henderson Supermarkets (HS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities and their...
Capital budgeting methods, no income taxes. City Hospital, a non-profit organization, estimates that it can save $28,000 a year in cash operating costs for the next 10 years if it buys a...
1. Do you believe that the diagnosis and resulting profile prepared by Management Analysis Corporation were necessary steps in the process of finding a potentially successful group of general...
1. Set up 3-sigma control limits with the given data. 2. Is the process in control? Why? 3. Based on your analysis, do you think the problem is the new computer system or something else? 4. What...
You are a part-time financial advisor. A client is considering an investment in common stock of a waste recycling firm. One motivation is a rumor the client heard that the company made huge...
Bus and subway ridership for summer months in London, England, is believed to be tied heavily to the number of tourists visiting the city. During the past 12 years, the following data have been...
Aaron Lynch Company has the following balances in selected accounts on December 31, 2014. Service Revenue ........$40,000 Insurance Expense...... 2,700 Supplies Expense ....... 2,450 All the accounts...
Suppose Nordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for the year ending January 30, 2014. For the year, net sales were...
Picasso Restoration Company completed the following selected transactions during May 2014: May 1. Established a petty cash fund of $800. 10. The cash sales for the day, according to the cash register...
Organizations typically have limits to how much change they can absorb. As a manager, what signs would you look for that might suggest your organization has exceeded its capacity to change?
Paul derives utility only from CDs and DVDs. His utility function is U = C D a. Sketch Pauls indifference curves for U = 5, U = 10, and U = 20. b. Suppose Paul has $200 to spend and that CDs cost $5...
Surfs Up, a manufacturer of surfing supplies and training equipment, has the following selected data ($ in millions): Based on these amounts, calculate the following ratios for 2015: 1. Debt to...
a. A friend of yours, Grace, wants to purchase a house in five years. To save for the house, Grace decides to deposit $112,000 in a savings account on January 1 of this year. The savings account will...
What limits the usefulness to managers of fixed budget performance reports?
1. What evidence was presented in this case that the staff members from different units at Tymco might have become better acquainted. 2. What should Maria do next to improve the chances that the home...
John Sullivan started a business. During the first month (February 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets = Liabilities +...
Moath Company reports the following for the month of June. Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO (2) LIFO. (b) Which costing method gives...
Dr. Kristine Cohen opened a medical practice specializing in physical therapy. During the first month of operation (July), the business, titled Dr. Kristine Cohen, Professional Corporation (PC),...
Why is the life cycle curve often S shaped?
Cost of Bank Loans Del Hawley, owner of Hawleys Hardware, is negotiating with First City Bank for a 1-year loan of $50,000. First City has offered Hawley the following alternatives. Calculate the...
Develop a WBS for a local stage play. Be sure to identify the deliverables and organizational units (people) responsible. How would you code your system? Give an example of the work packages in one...
On July 1, 2008, Agincourt Inc. made two sales. 1. It sold land having a fair market value of $700,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,101,460....
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $110,100 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.8% and SUTA...
Here are selected 2014 transactions of Cleland Corporation. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $62,000 and had a useful life of 10 years with...
Jones Enterprises was started when it acquired $6,000 cash from creditors and $10,000 from owners. The company immediately purchased land that cost $12,000. Required a. Record the events under an...
Tax Agency Fund. The county collector of Lincoln County is responsible for collecting all property taxes levied by funds and governments within the boundaries of the county. To reimburse the county...
Harris Systems specializes in servers for workgroup, e-commerce, and ERP applications. The companys original job costing system has two direct cost categories: direct materials and direct labor....
The Willow River Mining Company mines and ships coal. It has experienced the following demand for coal during the past eight years: Year Coat Sales (tons) 1 ...........4260 2 ...........4510 3...
Busch Corporation has an existing loan in the amount of $4.5 million with an annual interest rate of 5.5%. The company provides an internal company-prepared financial statement to the bank under the...
1. Is seasonal exponential smoothing the best model for forecasting Urban Run athletic wear? Why? 2. Explain what has happened to the data for Urban Run. What are the consequences of continuing to...
Rachel Robertson wishes to use mean-per-unit sampling to evaluate the reasonableness of the book value of the accounts receivable of Smith, Inc. Smith has 10,000 accounts receivable accounts with a...
Fernandez Corporation purchased a truck at the beginning of 2012 for $50,000. The truck is estimated to have a salvage value of $2,000 and a useful life of 160,000 miles. It was driven 23,000 miles...
Regis Clothiers can borrow from its bank at 17 percent to take a cash discount. The terms of the cash discount are 3/19, net 45. Should the firm borrow the funds?
State Bank's balance sheet is listed below. Market yields and durations (in years) are in parenthesis, and amounts are in millions. a. What is the repricing gap if the planning period is six months?...
Gator Co. invested $1,000,000 in Demo Co. for 25% of its outstanding stock. Demo Co. pays out 40% of net income in dividends each year.InstructionsUse the information in the following T-account for...
White Woods manufactures jewelry boxes. The primary materials (wood, brass, and glass) and direct labor are traced directly to the products. Manufacturing overhead costs are allocated based on...
What would efficient revenue management imply for the pricing of the Cowboys Stadium parking lot on typical game days? How about for the Super Bowl? How about for the many smaller events that fill...
Gemini, Inc., an all-equity firm, is considering a $1.7 million investment that will be depreciated according to the straight-line method over its four-year life. The project is expected to generate...
REH Corporations most recent dividend was $3 per share, its expected annual rate of dividend growth is 5%, and the required return is now 15%. A variety of proposals are being considered by...
1. What alternatives does the Pastorius family have to resolve their conflict? 2. What operations management principles would apply to running a microbrewery? When Tom Pastorius opened Penn Brewery...
Joe Jones wants to establish a construction fund (or sinking fund) to pay for a new bowling alley he is having built. Construction of the bowling alley is expected to take six months and cost...
On March 31, Dower Publishing discounted a $30,000 note at a local bank. The note was dated February 28 and required the payment of the principal amount and interest at 6% on May 31. The bank's...
1. Arrows up or down: Outsourcing _____ production costs and _____ consumer prices. 2. In the first three months of 2004, the number of jobs moving to another state was _____ (larger/smaller) than...
Southern Markets, Inc., is considering the use of ABC analysis to focus on the most critical SKUs in its inventory. Currently, there are approximately 20,000 different SKUs with a total dollar usage...
Imagine a simple economy with only two people: Augustus and Livia. a. Let the social welfare function be W = UL + UA where U L and U A are the utilities of Livia and Augustus, respectively. Graph the...
Southwest Tours Co. is travel agency. The nine transactions recorded by Southwest Tours during May 2012, its first month of operations, are indicated in the following T accounts: Indicate for each...
Two months ago, the owner of a car dealership (and a current football star) significantly changed his sales managers compensation plan. Under the old plan, the manager was paid a salary of $6,000 per...
Runcke Motor Company manufactures automobiles. During September 2011 the company purchased 5,000 head lamps at a cost of $9 per lamp. Runcke withdrew 4,650 lamps from the warehouse during the month....
1. Would a lab experiment or a field experiment be more valid in determining whether Tooheys could cause a normal beer consumer to become intoxicated? Explain. 2. Describe an alternate research...
The May transactions of Hanschu Corporation were as follows. May 4 Paid $700 due for supplies previously purchased on account. 7 Performed advisory services on account for $6,800. 8 Purchased...
Sanchez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2007 is as follows: The equipment has a zero disposal value. In a...
(a) What is the par or stated value of Coca-Colas and PepsiCos common or capital stock? (b) What percentage of authorized shares was issued by Coca-Cola at December 31, 2007, and by PepsiCo at...
Contrast the prime law for projects, Never surprise the boss, with the corporate adage Bad news never travels up.
The Cakebread Candy Company presents the following data for October: During the month, the firm purchased 49,000 pounds of materials for $127,500. Wages earned were $214,000. Compute the labor and...
According to a summary of the payroll of Bailik Co., $880,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $40,000 was subject to state and federal unemployment taxes....
Phil Collins Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $34,460. These building lots were...
Norman Company's income statement for the year ended December 31, 2010, contained the following condensed information. Norman's balance sheet contained the following comparative data at December 31....
What is the one greatest strength of a pluralistic society? What is the one greatest weakness? Do these characteristics work for or against business?
Terminator, Inc. manufactures a motorcycle part in lots of 250 units. The raw materials cost for the part is $150, and the value added in manufacturing unit from its components is $300, for a total...
Notes Receivable with Unrealistic Interest Rate On December 31, 2009, Hurly Co. performed environmental consulting services for Cascade Co. Cascade was short of cash, and Hurly Co. agreed to accept a...
The Murdock Corporation reported the following balance sheet data for 2009 and 2008. Additional information for 2009: (1.) Sold available-for-sale securities costing $69,500 for $74,000. (2.)...
Sylvestor Systems borrows $110,000 cash on May 15, 2015, by signing a 60-day, 12% note. 1. On what date does this note mature? 2. Suppose the face value of the note equals $110,000, the principal of...
Accounting for Franchise, Patents, and Trade Name Information concerning Sandro Corporations intangible assets is as follows. 1. On January 1, 2010, Sandro signed an agreement to operate as a...
In alphabetical order below are current asset items for Dieker Companys balance sheet at December 31, 2010. Prepare the current assets section (including a complete heading). Accounts receivable...
Weber Company purchases $45,000 of raw materials on account, and it incurs $60,000 of factory labor costs. Journalize the two transactions on March 31 assuming the labor costs are not paid until...
Transvaal Mining Tools Ltd. of South Africa makes specialty tools used in the mining industry. The company uses an activity-based costing system for internal decision-making purposes. The company has...
On November 1, 2014, the account balances of Samone Equipment Repair, Inc. were as follows. During November, the following summary transactions were completed. Nov. 8 Paid $1,500 for salaries due...
Kohl's Corporation's 7.25% bonds due in 2029 were reported as selling for 115.948. Were the bonds selling at a premium or at a discount? Why is Kohl's able to sell its bonds at this price?
The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Raw material purchases ................................ $ 175,000 Direct labor...
Sol Pine borrows $5,000 for one year at 13 percent interest. What is the effective rate of interest if the loan is discounted?
Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication...
The income statement for Arbor Vitae Golf Club for the month ending July 31 shows Service Revenue $16,400, Salaries and Wages Expense $8,400, Maintenance and Repairs Expense $2,500, and Net Income...
I am going to focus on the customers of my business and leave cost-allocation issues to my accountant. Do you agree with this comment by a division president? Why?
Choosing cost drivers, activity-based costing, activity-based management. Annie Warbucks runs a dance studio with childcare and adult fitness classes. Annies budget for the upcoming year is as...
The following events took place for Air Temp Manufacturing Company during January, the first month of its operations as a producer of digital thermometers: a. Purchased $68,000 of materials. b. Used...
LaSalle Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1 and July 1 with the following results. June 1: Cash in fund $1.75....
1. Why did NIBCO decide to purchase an ERP system? 2. Describe the pros and cons of a Big Bang approach, versus a less risky rollout strategy. If you had been the IS head at NIBCO, what approach...
Capitalization of Interest McPherson Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2010....
Cost of goods manufactured. Consider the following account balances (in thousands) for the Canseco Company: If you want to use Excel to solve this problem, go to the Excel lab at...
Assume that Ocean King Products sells three varieties of canned seafood with the following prices and costs: The sales mix (in cases) is 40 percent Variety 1, 35 percent Variety 2, and 25 percent...
Merry Olde Games produces croquet sets. The company makes fixed monthly payments to the local utility based on the previous years electrical usage. Any difference between actual and expected usage is...
Oscar Geer, a mid-level product manager for Theresa's Shoes, thinks his company should switch from LIFO to FIFO. He says, "My bonus is based on net income. If we switch it will increase net income...
Explain why managing productivity is important in operations management.
A beginning accounting student tried to complete a work sheet for Joyce Lee's Tax Service. The following adjusting entries were to have been analyzed and entered onto the work sheet. The work sheet...
Santana Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin, plant. The following costs are budgeted for the first quarters operations. Machine setup, indirect materials ........ $...
Diamond Jims makes and sells class rings for local schools. Operating information is as follows: Selling price per ring ........... $600 Variable cost per ring Rings and stones ........... $220 Sales...
Arlin Fabrication Company produces tools on a job order basis. During May, two jobs were completed, and the following costs were incurred: Other factory costs for the month totaled $16,800. Factory...
Peng Plasma is a privately held Chinese business. It specializes in the manufacture of plasma cutting torches. Over the past eight years it has held the Chinese renminbi price of the PT350 cutting...
Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:...
1. What factors should Perkins and Balkin consider when setting the wage for the purchasing agent position? What resources are available for them to consult when establishing this wage? 2. Suggest...
At August 31, Pratt Company has a cash balance per books of $9,500 and the following additional data from the bank statement: charge for printing Pratt Company checks $35, interest earned on checking...
Residents of Mill River have fond memories of ice skating at a local park. An artist has captured the experience in a drawing and is hoping to reproduce it and sell framed copies to current and...
1. A company has an inventory of 1,250 assorted parts for a line of missiles that has been discontinued. The inventory cost is $ 76,000. The parts can be either (a) remachined at total additional...
Madison Seniors Care Center is a nonprofit organization that provides a variety of health services to the elderly. The center is organized into a number of departments, one of which is the...
Italian Stallion has the following transactions during the year related to stockholders equity. February 1 Issues 6,000 shares of no-par common stock for $16 per share. May 15 Issues 700 shares of...