You are considering two assets with the following characteristics. E(R1) = 0:15 E(1) = 0:10 w1 = 0:5 E(R2) = 0:20 E(2) = 0:20 w2 = 0:5 Compute the mean and standard deviation of two portfolios if...
Alaw firm specializes in the issuance of insurance policies covering large commercial real estate projects. The projects fall into two categories: shopping centers, and medical complexes. The typical...
Econo Company, an electronics repair store, prepared the unadjusted trial balance shown below at the end of its first year of operations. For preparing the adjusting entries, the following data were...
On December 31, 2017, Ling Co. estimated that 2% of its net sales of $450,000 will become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Accounts. On May 11,...
The D.J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on terms of 3/10, net 90, and it currently pays on the 10th day...
For each of the unrelated transactions described below, present the entry(ies) required to record each transaction. 1. Coyle Corp. issued $10,000,000 par value 10% convertible bonds at 99. If the...
Prescott, Inc., manufactures bookcases and uses an activity-based costing system. Prescotts activity areas and related data follow: Prescott produced two styles of bookcases in October: the standard...
This trial balance of Swisher Co. does not balance. Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors: 1....
Explain how flexibility in production systems relates to the forecast horizon and forecast accuracy.
At December 31, 2017, the trial balance of Darby Company contained the following amounts before adjustment. Instructions (a) Based on the information given, which method of accounting for bad debts...
MNLogs harvested logs (with no inputs from other companies) from its prop¬erty in northern Minnesota. It sold these logs to MNLumber for $1,500 and MNLumber cut and planed the logs into lumber....
Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $325,000. The system can be sold today for $200,000. It is being depreciated...
Pirates Incorporated had the following balances at the beginning of September. The following transactions occur in September. September 1 Provide services to customers for cash, $4,700. September 2...
Webb Solutions, Inc. has the following financial structure: Accounts payable ..........$ 500,000 Short-term debt .......... 250,000 Current liabilities .......... $ 750,000 Long-term debt .............
(Amortization of Accumulated OCI Balances) Keeton Company sponsors a defined-benefit pension plan for its 600 employees. The company's actuary provided the following information about the plan. The...
Michael Bolton Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Instructions From the information above, determine the amount of...
Consider the following account balances (in thousands) for the Peterson Company: Required 1. Prepare a schedule for the cost of goods manufactured for 2014. 2. Revenues for 2014 were $ 310 million....
Management accounting should not fit the straitjacket of financial accounting? Explain and give an example.
Define halo error. How can halo error inhibit selecting the best strategies to pursue?
An information systems consultant who lives in Dallas must spend the majority of the month of March onsite with a client in San Diego. Her travel schedule for the month is as follows: Leave Dallas...
1. What symptom(s) in this case suggest that something has gone wrong? 2. What are the main causes of these symptoms? 3. What actions should Vtements executives take to correct these problems?...
Anchovy acquired 90 percent of Yelton on January 1, 2013. Of Yeltons total acquisition-date fair value, $60,000 was allocated to undervalued equipment (with a 10-year remaining life) and $80,000 was...
FIFO, LIFO, and Average Cost Inventory Esplanade Company was formed on December 1, 2009. The following information is available from Esplanades inventory records for Product BAP. Units Unit Cost...
M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of...
Lindas Boards sells a snowboard, Xpert,that is popular with snowboard enthusiasts. Information relating to Lindas purchases of Xpert snowboards during September is shown below. During the same month,...
Gardi Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category...
Mila Fashion in New York operates three departments: Men's, Women's, and Accessories. Mila Fashion allocates all fixed expenses (unavoidable building depreciation and utilities) based on each...
Presented below are Rook Companys monthly manufacturing cost data related to its tablet computer product. (a) Utilities for manufacturing equipment ....... $116,000 (b) Raw material (CPU, chips,...
Access the FASB Codification at asc.fasb.org/home to conduct research using the Codification Research System to prepare responses to the following items. Provide Codification references for your...
Derivative Transaction On January 2, 2010, Jones Company purchases a call option for $300 on Merchant common stock. The call option gives Jones the option to buy 1,000 shares of Merchant at a strike...
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy:...
The comparative balance sheets of Nike, Inc. are presented here. Instructions(a) Prepare a horizontal analysis of the balance sheet data for Nike using 2006 as a base.(Show the amount of increase or...
Inventory information for Part 311 of Monique Aaron Corp. discloses the following information for the month of June. June 1 Balance 300 units .... @ $10 11 Purchased 800 units .... @ $12 20 Purchased...
Name four areas that are significant to improving labor productivity.
Since Jack believes that Work Center 3 is his bottleneck, he has asked you to do the following: (a) Calculate the percentage of planned output needed to complete the planned inputs (planned input +...
(Long-Term Debt Disclosure) At December 31, 2010, Redmond Company has outstanding three long-term debt issues. The first is a $2,000,000 note payable which matures June 30, 2013. The second is a...
Effective-Interest versus Straight-Line Bond Amortization on January 1, 2010, Morgan Company acquires $300,000 of Nicklaus, Inc., 9% bonds at a price of $278,384. The interest is payable each...
Standard-costing method. Ozumo?s Gardening makes several different kinds of mulch. Its busy period is in the summer months. In August, the controller suddenly quit due to a stress-related disorder He...
Panther Corporation appeared to be experiencing a good year. Sales in the first quarter were one-third ahead of last year, and the sales department predicted that this rate would continue throughout...
In manufacturing its products, Trevano Corp. adds all direct material at the beginning of the production process. The companys direct labor and overhead are considered to be continuously at the same...
1. Given the early stage of the business, should the Network Collie management team even be considering an exit at this time? Why or why not? 2. If a company acquires Network Collie, what are they...
Horizon Outfitters Company includes in its trial balance for December 31 an item for Accounts Receivable $789,000. This balance consists of the following items: Due from regular...
Bulloch County never has allowed liquor to be sold in restaurants. However, in three months, county residents are scheduled to vote on a referendum to allow liquor to be sold by the drink. Currently,...
Current assets for two different companies at calendar year- end 2013 are listed here. One is a manufacturer, Salomon Skis Mfg., and the other, Sun Fresh Foods, is a grocery distribution company. (1)...
Neve Commercial Bank is the only bank in the town of York, Pennsylvania. On a typical Friday, averages of 10 customers per hour arrive at the bank to transact business. There is currently one teller...
Gordon & Moore, CPAs, were the auditors of Fox & Company, a brokerage firm. Gordon & Moore examined and reported on the financial statements of Fox, which were filed with the Securities and Exchange...
Horatio Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. Instructions (a) Compute the missing amounts. Show...
Refer to Problem 1.13. The pay will be $8 per hour for employees. Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an increase in his investment. This...
In January 2014, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc., for $700,000. This investment gave Domingo the ability to exercise significant influence over...
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room...
Listed below are the transactions of Yasunari Kawabata, D.D.S., for the month of September. Sept. 1 Kawabata begins practice as a dentist and invests $20,000 cash. 2 Purchases dental equipment on...
Waylander Coatings Company purchased waterproofing equipment on January 6, 2013, for $320,000. The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a...
ProBuilder has the following June 30, 2016, fiscal-year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable, $10,000. Of the $10,000 of receivables, $2,000 are within...
Bad Debts'Aging Puckett, Inc. includes the following account among its trade receivables. Age the balance and specify any items that apparently require particular attention atyear-end. Alstott Co....
All businesses are involved in three types of activitiesfinancing, investing, and operating. Listed below are the names and descriptions of companies in several different industries. Abitibi...
Evaluate Intels more recent marketing efforts. Did they lose something by dropping the Intel Inside tagline or not?
Liz Rogers just closed a $10,000 business loan that is to be repaid in three equal, annual, end-of-year payments. The interest rate on the loan is 13%. As part of her firms detailed financial...
The unadjusted trial balance of PS Music as of July 31, 2014, along with the adjustment data for the two months ended July 31, 2014, are shown below. Based upon the adjustment data, the adjusted...
Baldwin Inc. is an athletic footware company that began operations on January 1, 2014. The following transactions relate to debt investments acquired by Baldwin Inc., which has a fiscal year ending...
Annie Zhao is using attributes sampling in testing controls over sales transactions. She is testing five attributes related to sales invoices using an ARO of 5% (confidence level of 95%), and zero...
Mr. and Mrs. Ward typically vote oppositely in elections and so their votes "cancel each other out." They each gain two units of utility from a vote for their positions (and lose two units of utility...
On January 10, Allison Milo uses her Crawford Co. credit card to purchase merchandise from Crawford Co. for $1,700. On February 10, Milo is billed for the amount due of $1,700. On February 12, Milo...
These are selected 2014 transactions for Amarista Corporation: Jan. 1 Purchased a copyright for $120,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1...
Frevert purchased a new piece of equipment to be used in its new facility. The $370,000 piece of equipment was purchased with a $50,000 down payment and with cash received through the issuance of a...
1. What challenges does Coach face relative to pricing its vast product line? 2. Based on principles from the chapter, explain how price affects customer perceptions of the Coach brand. 3. How has...
Aulman Inc. has a number of divisions, including a Furniture Division and a Motel Division. The Motel Division owns and operates a line of budget motels located along major highways. Each year, the...
Garden depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: The companys beginning cash balance for...
What is your opinion of Gap Internationals having a code of conduct for its suppliers? What would Milton Friedman say? Contrast his view with Archie Carrolls view.
The Pelletier Corporation has just discovered that it will not have enough warehouse space for the next five months. The additional warehouse space requirements for this period are: To cover its...
Bond Yields Ngata Corp. issued 12-year bonds 2 years ago at a coupon rate of 9.2 percent. The bonds make semiannual payments. If these bonds currently sell for 104 percent of par value, what is the...
Adams Corporation is considering four average-risk projects with the following costs and rates of return: The company estimates that it can issue debt at a rate of r d = 10%, and its tax rate is 30%....
On January 1, 2017, Geffrey Corporation had the following stockholders equity accounts. Common Stock ($20 par value, 60,000 shares issued and outstanding).. $1,200,000 Paid-in Capital in Excess of...
Terminator Inc. provides on-site residential pest extermination services. The company has several mobile teams who are dispatched from a central location in company-owned trucks. The company uses the...
The Fly Right Travel Agency was organized on January 1, 2010, by Joe Kirkpatrick. Joe is a good manager but a poor accountant. From the trial balance prepared by a parttime bookkeeper, Joe prepared...
Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared...
Since its inception, Eco Plastics Company has been revolutionizing plastic and trying to do its part to save the environment. Ecos founder, Marion Cosby, developed a biodegradable plastic that her...
Multiple Choice Questions 1. A parent company buys bonds on the open market that had been previously issued by its subsidiary. The price paid by the parent is less than the book value of the bonds on...
Klose Outfitters Inc. believes that its optimal capital structure consists of 60% common equity and 40% debt, and its tax rate is 40%. Klose must raise additional capital to fund its upcoming...
I-mart is a discount optical shop that can fill most prescription orders in around 1 hour. The management is analyzing the processes at the store. There currently is one person assigned to each task...
Mechum River Anglers, a division of Old Dominion Travel, offers two types of guided fly fishing tours, Basic and Deluxe. Operating income for each tour type in 2014 is as follows: The equipment has a...
Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $3 per labor-hour. Strawberry and vanilla flavors are produced in...
Due to erratic sales of its sole product - a high -capacity battery for laptop; computers PEM, Inc., has been experiencing difficulty for some time. The companys contribution format income statement...
Upton Corporation has the following transactions during August of the current year. Indicate (a) the basic analysis and (b) the debitcredit analysis illustrated on pages 121126. Aug. 1.Issues shares...
Latona Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Latona showed Cash of $5,000 and Owners Capital of $5,000. May 1...
1. What suggestions would you give Jim to help Airspace lower its operating costs? 2. How would you help Airspace implement those plans? 3. What constraints can you identify that would prevent...
The contribution margin income statement of Westlake Coffee for February follows: Westlake coffee sells three small coffees for every large coffee. A small coffee sells for $ 3.00, with a variable...
1. Name at least three ways that Shu could automate her asset management. Suggest at least one option for retirement savings, general savings, and general convenience. 2. What major factors should...
Novak Corporation is preparing its 2010 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each...
The following project is at the end of its sixth week. Find the cost and schedule variances. Also find the CPI, SPI, ETC, and EAC for theproject. Pre- Duration BudgetActual (wks) Cost () Copete...
During 2013, Matti Conners, president of Maggert Company, was paid a semimonthly salary of $5,200. Compute the amount of FICA taxes that should be withheld fromher: OASDI HI a. 9th paycheck S b. 22nd...
The investment committee of Sentry Insurance Co. is evaluating two projects, office expansion and upgrade to computer servers. The projects have different useful lives, but each requires an...
Williams Optical Inc. is considering a new just-in-time product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 40 units. The...
(Securities and Exchange Commission) The U.S. Securities and Exchange Commission (SEC) was created in 1934 and consists of five commissioners and a large professional staff. The SEC professional...
Maurice Browne recorded the following times assembling a watch. Determent (a) The average time (b) The normal time (c) The standard time taken by him, using a performance rating of 95% and a personal...
The Smelting Department of Kiner Company has the following production data for November. Beginning work in process 2,000 units that are 100% complete as to materials and 20% complete as to conversion...
The T-accounts for Equipment and the related Accumulated Depreciation Equipment for Ada Company at the end of 2014 are shown here. In addition, Ada Companys income statement reported a loss on...
Do you think that Starbucks has grown rapidly because of its ethical and socially responsible activities or because it provides products and an environment that customers want? Starbucks was founded...
The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2011, included the following income accounts: The trial balance does not include the accrual for...
The annual salaries paid each of the officers of Perez, Inc., follow. The officers are paid semimonthly on the 15th and the last day of the month. Compute the FICA taxes to be withheld from each...
Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31, 2014: Customer Amount Kim Abel ..... $ 21,550 Lee Drake .... 33,925 Jenny...