You have the following information for Van Gogh Inc. for the month ended October 31, 2017. Van Gogh uses a periodic method for inventory. Instructions (a) Calculate (i) Ending inventory , (ii) Cost...
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...
McDonalds did very well during the recession in the late 2000s. With the economy turning around for the better, should McDonalds change its strategy? Why or why not?
In Wayne Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing...
Fred Nappa is planning to take a wine-tasting tour through Italy this summer. The tour will cost 2,750 euros () and includes transportation, hotels, and a guide. Fred estimates that round-trip...
You and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the...
On January 1, 2014, the ledger of Shumway Company contains the following liability accounts. Accounts Payable ........... $52,000 Sales Taxes Payable ........... 5,800 Unearned Service Revenue...
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...
Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued $35,000,000 of five-year, 12% bonds at a market (effective) interest rate of 10%, with interest...
1. In the context of KS Cleaners, critically evaluate the availability of any prerequisites to implementing a performance management process. 2. Discuss your plans for developing formal job...
Revenue Recognition on Marina Sales with Discounts Taylor Marina has 300 available slips that rent for $800 per season. Payments must be made in full at the start of the boating season, April 1,...
Each of the following items must be considered in preparing a statement of cash flows (indirect method) for Turbulent Indigo Inc. for the year ended December 31, 2014. a) Plant assets that had cost...
Melissa Adduci has prepared the following list of statements about depreciation. 1. Depreciation is a process of asset valuation, not cost allocation. 2. Depreciation provides for the proper matching...
Freight car loadings over a 12-year period at a busy port are as follows: a. Determine a linear trend line for expected freight car loadings. b. Use the trend equation to predict expected loadings...
At January 1, 2010, Beidler Company reported retained earnings of $2,000,000. In 2010, Beidler discovered that 2009 depreciation expense was understated by $400,000. In 2010, net income was $900,000...
Ratio Computation and Analysis; Liquidity) as loan analyst for Madison Bank, you have been presented the following information. Each of these companies has requested a loan of $50,000 for 6 months...
Comparative statement data for Farris Company and Ratzlaff Company, two competitors, appear below. All balance sheet data are as of December 31, 2015, and December 31, 2014. Instructions (a) Prepare...
Kirk Van Houten, who has been married for 23years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30-year wedding anniversary. Assume that the cost of the ring...
Altugs Coffee Shop decides to install an automatic coffee vending machine outside one of its stores to reduce the number of people standing in line inside. Mehmet Altug charges $ 3.50 per cup....
You are engaged to audit the Ferrick Corporation for the year ended December 31, 2013. Only merchandise shipped by the Ferrick Corporation to customers up to and including December 30, 2013, has been...
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 comparative condensed balance sheets of Conard Corporation are presented below. Instructions(a) Prepare a horizontal analysis of the balance sheet data for Conard Corporation using 2010 as a...
Parry Company has accounts receivable of $95,400 at March 31, 2012. An analysis of the accounts shows these amounts. Credit terms are 2/10, n/30. At March 31, 2012, there is a $2,100 credit balance...
Gayles Glassworks makes glass flanges for scientific use. Materials cost $1 per flange, and the glass blowers are paid a wage rate of $28 per hour. A glass blower blows 10 flanges per hour. Fixed...
What should Mr. Rutland do? Include the following issues: Budget: acquiring adequate resources Philanthropic organizations Governmental agencies Donations Memberships Visitors Budget:...
Multiple Choice Questions The following items apply to determining sample sizes using random sampling from large populations for attributes sampling. Select the most appropriate response for each...
A company produces two products, A and B, which have profits of $9 and $7, respectively. Each unit of product must be processed on two assembly lines, where the required production times are as...
The following information is available for Sedona, Inc., as of May 31, 2014: a. Cash on the books as of May 31 amounted to $42,754.16. Cash on the bank statement for the same date was $52,351.46. b....
1. Is there a difference between aggressive accounting and earnings management? Would the motivation for using the techniques described in this case influence whether they should be labeled as...
On May 1, 2017, Richardson Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $900 in advance...
Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin paying dividends,...
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...
Blundell Biotech is a U.S.-based biotechnology company with operations and earnings in a number of foreign countries. The company's profits by subsidiary, in local currency (in millions), are shown...
Using the audit risk model, state the effect on control risk, inherent risk, acceptable audit risk, and planned evidence for each of the following independent events. In each of the events a to j,...
Askew Company uses a periodic inventory system. The June 30, 2011, year-end trial balance for the company contained the following information: In addition, you determine that the June 30, 2011,...
Carmel Rugs is holding a 2-week carpet sale at Jeans Club, a local warehouse store. Carmel Rugs plans to sell carpets for $ 1,000 each. The company will purchase the carpets from a local distributor...
Jackie Remmers Travel Agency purchased land for $85,000 cash on December 10, 2014. At December 31, 2014, the lands value has increased to $93,000. What amount should be reported for land on Jackie...
Questions 1 through 8 are typically found in questionnaires used by auditors to obtain an understanding of internal control in the acquisition and payment cycle. In using the questionnaire for a...
Suppose the government borrows $20 billion more next year than this year. a. Use a supply-and-demand diagram to analyze this policy. Does the interest rate rise or fall? b. What happens to...
Dont ship air and dont ship water are the bases of some important supply chain strategies. What do these statements really mean? What are the related strategies? How do these strategies help?
A firm purchased some equipment at a very favorable price of $30,000. The equipment resulted in an annual net saving of $1000 per year during the 8 years it was used. At the end of 8 years, the...
Lance Prating is the controller of the Colorado Springs manufacturing facility of Advance Macro, Incorporated. Among the many reports that must be fi led with corporate headquarters is the annual...
The Central Valley Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: Management has decided that the most appropriate inventory costs are...
On January 1, 2014, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $980,000 in cash and other consideration. At the acquisition date, Smashing...
Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2015. Other cash flow information: Additional investments by stockholders $ 34,000 Cash paid to...
On March 31, 2018, Chow Brothers, Inc., bought 10% of KT Manufacturing's capital stock for $50 million. KT's net income for the year ended December 31, 2018, was $80 million. The fair value of the...
WACC and Optimal Capital Structure Elliott Athletics is trying to determine its optimal capital structure, which now consists of only debt and common equity. The firm does not currently use preferred...
Jenek Corporation had the following transactions pertaining to debt investments. Jan. 1 Purchased 50 9%, $1,000 Leeds Co. bonds for $50,000 cash. Interest is payable semiannually on July 1 and...
The following data are the actual results for Marvelous Marshmallow Company for October. Actual output ............. 9,000 cases Actual variable overhead .......... $405,000 Actual fixed overhead...
Gina Vitale has just contracted to sell a small parcel of land that she inherited a few years ago. The buyer is willing to pay $24,000 at the closing of the transaction or will pay the amounts shown...
Using the flowchart for Problem 8 of a purchases system, identify six major control weaknesses in the system. Discuss and classify each weakness in accordance with SAS 78/COSO.
Green City Builders' balance sheet data at May 31, 2016, and June 30, 2016, follow: For each of the following situations with regard to common stock and dividends of a corporation, compute the amount...
Java Source, Inc. (JSI), is a processor and distributor of a variety of blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for resale. JSI...
Bailey Cleaners has the following balance sheet items. Accounts payable ........Accounts receivable Cash ...........Notes payable Equipment ..........Salaries and wages payable Supplies...
Rocky Mountain Sounds Corp., an electric guitar retailer, was organized by Cathy Dewitt, Melody Leimbach, and Mario Torres. The charter authorized 250,000 shares of common stock with a par of $40....
Maria Juarez is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred. April 1 Invested $40,000 cash. 1 Hired a...
Kinnion Medical Clinic has budgeted the following cash flows. Kinnion Medical had a cash balance of $8,000 on January 1. The company desires to maintain a cash cushion of $5,000. Funds are assumed to...
Kitchen Kings Toledo plant manufactures three product lines, all multi-burner, ceramic cook tops. The plants three product models are the Regular (REG). the Advanced (ADV), and the Gourmet (GMT)....
On March 12, Medical Waste Services provides services on account to Grace Hospital for $11,000, terms 2/10, n/30. Grace pays for those services on March 20. Required: For Medical Waste Services,...
Cost data for Tiwana Manufacturing Company for the month ended May 31, 2014, are as follows: a. Prepare a cost of goods manufactured statement for May 2014. b. Determine the cost of goods sold for...
Diez Company produces sporting equipment, including leather footballs. Identify each of the following costs as direct or indirect. The cost object is a football produced by Diez. 1. Electricity used...
Kelly, age 35, is a single parent and has a one-year-old son. She earns $45,000 annually as a marketing analyst. Her employer provides group life insurance in the amount of twice the employees...
Bedard Corporation reported net income of $300,000 in 2010 and had 200,000 shares of common stock outstanding throughout the year. Also outstanding all year were 45,000 options to purchase common...
Do you think expectancy theory is too complex for direct use in organizational settings? Why or why not?
The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The companys present...
1. As DIY Stores built its online presence, how well did it organize around its core capabilities? 2. DIY Stores is a large national chain. What impact did its size have on its agility? 3. How could...
1. How do the four characteristics of services apply to Airbnb? How does Airbnb deal with each characteristic? 2. Apply the service profit chain concept to Airbnb. 3. How does Airbnb differentiate...
Mullet Technologies is considering whether or not to refund a $75 million, 12 percent coupon 30-year bond issue that was sold 5 years ago. It is amortizing $5 million of flotation costs on the 12...
Bloom Corporation had the following 2010 income statement. The following accounts increased during 2010: accounts receivable $12,000; inventory $11,000; accounts payable $13,000. Prepare the cash...
Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A's production is much more labor intensive than that of Model B. Model B is also...
Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixed cost to be $500.00 and its variable cost to be $0.50 per unit. Selling price is expected to...
Farr Co. elects to use the percentage-of-sales basis in 2014 to record bad debt expense. It estimates that 2% of net credit sales will become uncollectible. Sales revenues are $800,000 for 2014,...
The BackPack Company produces a line of backpacks. The manager, Jill Nicholas, is interested in using a level aggregate plan. Inventories and back orders will be used to handle demand fluctuations....
Brittany Callihan sold stock (basis of $184,000) to her son, Ridge, for $160,000, the fair market value. a. What are the tax consequences to Brittany? b. What are the tax consequences to Ridge if he...
Archer Inc. issued $4,000,000 par value, 7% convertible bonds at 99 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Prepare the journal entry to record...
Presented on the following pages are partial financial statements for the City of Shenandoah, including: Fiscal year 2012: A. Total Governmental Funds: Balance Sheet Statement of Revenues,...
1. Evaluate the criteria FEL uses to assign managers to project teams. What efficiencies do these criteria create? What are the resulting problems? 2. Why is it even more important that project team...
Multiple-Choice Questions 1. A business owner makes 1,000 items a day. Each day he or she contributes eight hours to produce those items. If hired, elsewhere he or she could have earned $250 an hour....
Krauss Leasing Company signs a lease agreement on January 1, 2011, to lease electronic equipment to Stewart Company. The term of the non-cancelable lease is 2 years, and payments are required at the...
Thornton Computer Timeshare Company entered into the following transactions during May 2012. 1. Purchased computer terminals for $20,000 from Digital Equipment on account. 2. Paid $4,000 cash for May...
Buzzrite, a retailer of casual clothes, ended the current year with annual sales (at cost) of $48 million. During the year the inventory of apparel turned over six times. For the next year, Buzzrite...
1. Why didnt this team receive the RFP at the same time the larger consulting firms did? 2. Why is this team being considered as a candidate to submit a proposal? 3. What should Maggie, Paul, and...
Which is the most effective piece of legislation for enforcing ethical business practices: FCPA, FSGO, SOX, or Dodd-Frank? Explain your answer.
(Retained Earnings Statement) Eddie Zambrano Corporation began operations on January 1, 2001. During its first 3 years of operations, Zambrano reported net income and declared dividends as follows....
Asset Retirement Obligation Bassinger Company purchases an oil tanker depot on January 1, 2010, at a cost of $600,000. Bassinger expects to operate the depot for 10 years, at which time it is legally...
John Neff owns and operates Waikiki Surf Shop. A year-end trial balance. Year-end adjustment data for the Waikiki Surf Shop are shown below. (a and b) A physical count shows merchandise inventory...
Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that aremissing. 2006 2007 2008 $290,000 $ $410,000 Sales Sales returns Net sales...
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Rent expense and salaries expense are equally divided between selling activities and the general and...
The Hickory Cabinet and Furniture Company produces sofas, tables, and chairs at its plant in Greensboro, North Carolina. The plant uses three main resources to make furniturewood, upholstery, and...
1. In what way(s) has Ken Frazier demonstrated his effectiveness as a crisis leader? 2. Given our discussion on the distinction between a traditional and learning organization, what type of...
Transfer of Receivables with Recourse Gringo Corporation factors $250,000 of accounts receivable with Winkler Financing, Inc. on a with recourse basis. Winkler financing will collect the receivables....
Changing a culture from one that rewards secrecy to one that is more transparent (especially in a crisis) appears to be difficult. Why? Toyota is an extremely successful automaker that has built a...
Comparative statement of financial position accounts of Sharpe Company are presented below. Additional data: 1. Equipment that cost $10,000 and was 60% depreciated was sold in 2010. 2. Cash dividends...
Yoshi Company completed the following transactions and events involving its delivery trucks. 2012 Jan. 1 Paid $ 20,515 cash plus $ 1,485 in sales tax for a new delivery truck estimated to have a...
We saw in the chapter opener that some colleges and private companies have launched online courses that anyone with an Internet connection can take. The most successful of these massive open online...
Maese Industries Inc. has warrants outstanding that permit the holders to purchase 1 share of stock per warrant at a price of $25. a. Calculate the exercise value of the firms warrants if the common...
Adjusting Entries) 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...
The bookkeeper of Greener Landscaping, Inc., prepared the companys balance sheet while the accountant was ill. The balance sheet contains numerous errors. In particular, the bookkeeper knew that the...
Lisa Vozniak started her own business, We Do Windows. She offers interior and exterior window cleaning for local area residents. Lisa rents a garage to store her tools and cleaning supplies and has a...
The Great North Woods Clothing Company is a mail-order company that processes thousands of mail and telephone orders each week. They have a customer service number to handle customer order problems,...