Hau Lee Furniture, Inc., described in Example 1 of this chapter, finds its current profit of $ 10,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for...

Below are the financial statements for two firms, Time Warner and Walt Disney, for 2012 and 2013. a. How did Time Warner's profit margins change from 2012 to 2013? To what would you attribute the...

The adjusted trial balance of Cavamanlis Co. as of December 31, 2012, contains the following. Instructions(a) Prepare an income statement.(b) Prepare a statement of retained earnings.(c) Prepare a...

Ethical Issue: What is puffery, and how can it be justified in marketing messages? Consider the following: Dr. Phil calls himself Americas most trusted relationship counselor. Rush Limbaugh claims to...

Horizon Cellular manufactures cell phones for exclusive use in its communication network. Management must select a circuit board supplier for a new phone soon to be introduced to the market. The...

Actual demand for a product for the past three months was Three months ago ............. 400 units Two months ago ............. 350 units Last month ............. 325 units a. Using a simple three-...

(Multiple Choice) 1. In a bank reconciliation, an EFT cash payment is a. added to the bank balance. b. deducted from the book balance. c. added to the book balance. d. deducted from the bank balance....

In early January 2015, NewTech purchases computer equipment for $154,000 to use in operating activities for the next four years. It estimates the equipments salvage value at $25,000. Prepare a table...

Windom College, a not-for-prot institution, engaged in the following transactions during its scal year ending June 30, 2014. Prepare appropriate journal entries, indicating the types of funds (by...

Berstler Construction Company began operations in 2012. Construction activity for the first year is shown below. All contracts are with different customers, and any work remaining at December 31,...

In Part I of the case, you performed preliminary analytical procedures for Pinnacle. The purpose of Part II is to identify factors influencing risks and the relationship of risks to audit evidence....

Refer to the data for the Ferre Publishing Company in Exercise 4B3. In Exercise 4B3, The Ferre Publishing Company has three service departments and two operating departments. Selected data from a...

Assume the following scenarios. Scenario 1: During 2015, IBM provides consulting services on its mainframe computer for $11,000 on account. The customer does not pay for those services until 2016....

You are the audit manager for Ken- Ron Enterprises. Your firm has been the entitys auditor for 15 years. Your firm normally uses a range of 3% to 5% of income before taxes to calculate overall...

Identify ways in which the internationalization of business affects businesses in your community.

Given Targets current situation, what recommendations would you make to Steinhafel for his companys future? When you hear the term discount retail, two names that usually come to mind: Walmart and...

1. Critics of CRAs assert that they are too intrusive, ineffective, and unnecessary and that they can cause as many problems as they solve. Identify the specific reasons and examples that might...

Burke Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2...

Beacon Company is considering automating its production facility. The initial investment in automation would be $15 million, and the equipment has a useful life of 10 years with a residual value of...

Sheryl Crow Equipment Company sold 500 Rollomatics during 2008 at $6,000 each. During 2008, Crow spent $20,000 servicing the 2-year warranties that accompany the Rollomatic. All applicable...

On January 1, 2014, Primo Corporation had the following stockholders equity accounts. Common Stock ($10 par value, 75,000 shares issued and outstanding) .....$750,000 Paid-in Capital in Excess of...

The inverse demand for a homogeneous- product Stackelberg duopoly is P 16,000 4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 4,000QL and CF (QF) = 6,000QF. a....

Marty and Jean are married and have 4-year-old twins. Jean is going to school full-time for 9 months of the year, and Marty earns $45,000. The twins are in day care so Jean can go to school while...

Sarasota Company has a credit balance of $2,200 in Allowance for Doubtful Accounts before adjustment. The estimated uncollectibles under the percentage- of-receivables basis is $5,100. Prepare the...

Leoni Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2010. The terms provide for semiannual installment payments...

Assume that you recently received your MBA and now work as assistant to the CFO of a relatively large corporation. Your boss has asked you to prepare a financial forecast for the coming year, using...

CVP analysis, margin of safety Suppose Doral Corp.s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Required 1. Compute the contribution margin percentage. 2. Compute the selling...

The Farmers American Bank of Leesburg is planning to install a new computerized accounts system. Bank management has determined the activities required to complete the project, the precedence...

Why are pipelines unknown to many individuals? Do you think the pipelines should advertise to change this?

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?...

Janssen Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Janssens ledger showed Cash of $8,000 and Common Stock of $8,000. May 1...

Presented below is selected information related to Garryowen Company at December 31, 2015. Garryowen reports financial information monthly. Accounts Payable .......... $ 3,000 Cash ...................

Cedar Grove Industries produces and sells a cell phone-operated home security control. Information regarding the costs and sales of security controls during May 2017 are provided below. Unit selling...

(Entries for Zero-Interest-Bearing Notes) On January 1, 2011, McLean Company makes the two following acquisitions. 1. Purchases land having a fair market value of $300,000 by issuing a 5-year,...

Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires a series of three processes. Materials are entered at the beginning of the Filling process. The...

Garnett Printing Corp. uses a job order cost system.The following data summarize the operations related to the first quarter??s production.1. Materials purchased on account $192,000, and factory...

Consider an 8% coupon bond selling for $953.10 with 3 years until maturity making annual coupon payments. The interest rates in the next 3 years will be, with certainty, r1 = 8%, r2 = 10%, and r3 =...

Use the following information for Palmer Co. to compute inventory turnover for 2013 and 2012, and its days sales in inventory at December 31, 2013 and 2012. ( Round answers to one decimal.) Comment...

The adjusted trial balance for Martell Bowling Alley at December 31, 2014, contains the accounts shown on page 198. Instructions (a) Prepare a classified balance sheet; assume that $22,000 of the...

In Problem 34 in Chapter 1, when Tracy McCoy wakes up Saturday morning, she remembers that she promised the PTA she would make some cakes and/or homemade bread for its bake sale that afternoon....

Bank Reconciliation and Adjusting Entries the cash account of Aguilar Co. showed a ledger balance of $3,969.85 on June 30, 2010. The bank statement as of that date showed a balance of $4,150. Upon...

The following is a list of activities that companies perform in relation to their receivables. 1. Selling receivables to a factor. 2. Reviewing company ratings in The Dun and Bradstreet Reference...

The comparative financial statements prepared at December 31, 2012, for Prince Company showed the following summarized data: *One-third was credit sales. During 2012, cash dividends amounting to...

1. Draw a network diagram for this project. Identify all the paths through the network diagram. 2. Simulate the completion of this project 1000 times assuming that activity times follow a triangular...

On December 1, Marzion Electronics Ltd. has three DVD players left in stock. All areidentical all are priced to sell at $150. One of the three DVD players left in stock, withserial #1012, was...

Selected account balances for Hulse Company at January 1, 2014, are presented below. Accounts Payable ........ $14,000 Accounts Receivable ....... 22,000 Cash ............... 17,000 Inventory...

Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay2 chip, will take two years to develop. However, because other chip manufacturers will be able...

Below is a list of activities for Purple Cow Incorporated. Required: For each activity, indicate the impact on the accounting equation. After doing so for all transactions, ensure that the accounting...

Record Sales Gross and Net On June 3, Bolton Company sold to Arquette Company merchandise having a sale price of $2,000 with terms of 2/10, n/60 f.o.b. shipping point. An invoice totaling $90, terms...

Describe the governmental activities of a state or local government and identify the measurement focus and basis of accounting used in accounting and financial reporting for these activities.

Suppose you are a systems analyst developing a detailed test plan. Explain the testing strategies you will use in your plan. Will you use live or simulated data?

Mandy Feng employs Jay Johnson at a salary of $35,000 a year. Feng is subject to employer Social Security taxes at a rate of 6.2% and Medicare taxes at a rate of 1.45% on Johnson's salary. In...

Management at the Kerby Corporation has determined the following aggregated demand schedule (in units): An employee can produce an average of 10 units per month. Each worker on the payroll costs...

The December 31, 2015, adjusted trial balance for Fightin Blue Hens Corporation is presented below. Required: 1. Prepare an income statement for the year ended December 31, 2015. 2. Prepare a...

Pamcar Industries sells IT equipment, specialising in printers and faxes. The following statement reflects the contribution margin of each activity, and overall profit levels. Required: a. Calculate...

Ebersoll Mining has $6 million in sales, its ROE is 12%, and its total assets turnover is 3.2. The company is 50% equity financed. What is its net income?

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2011 ($ in 000s): In addition, during the year the company completed the disposal of its plastics...

What makes social media social isits give and take, says Jeff Gerst ofBolin Marketing, who manages theCarmex social media properties. Bygive Gerst is referring to the feedbackconsumers send on social...

Stan Baiman owns a catering company that prepares food and beverages for banquets and parties. For a standard party the cost on a per-person basis is as follows: Food and beverages ........... $ 30...

Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the...

Vincent Yarwood practices medicine under the business title Vincent Yarwood, M.D. During July, the medical practice completed the following transactions: Jul. 1 Yarwood contributed $68,000 cash to...

Theres no reason for me to get excited about the choice between the weighted-average and FIFO methods in my process-costing system. I have long term contracts with my materials suppliers at fixed...

Latta Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Latta Corp. requests you as its independent CPA to convert...

Closing down divisions. Belmont Corporation has four operating divisions. The budgeted revenues and expenses for each division for 2011 follows: Further analysis of costs reveals the following...

Floras Fabulous Fountains (FFF) top product is its Model A. Using the information given, draw the product structure tree for the ModelA. Usage Lead Immediate per Time Beginning Parent Parent (weeks)...

What categories of constraints to project plan implementation are noted in the chapter? Explain each of them.

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...

Henri of Henris French Cuisine (HFC), a chain of twelve restaurants, is trying to decide if it makes sense to outsource the purchasing function. Currently, Henri employs two buyers at an annual fixed...

Presented below is a partially completed Statement of Activities for a homeless shelter. Complete the Statement of Activities by filling in the amounts that would appear in each of the shaded areas....

Participants in a training course are often asked to evaluate the course by means of a questionnaire. What are the pros and cons of this approach? Are there better ways of evaluating a course?

Consider trade relations between the United States and Mexico. Assume that the leaders of the two countries believe the payoffs to alternative trade policies are as follows: a. What is the dominant...

James Mayaguez engaged in the following activities in establishing his photography studio, Picture This!: 1. Opened a bank account in the name of Picture This! and deposited $8,000 of his own money...

On June 1, 20--, a depreciable asset was acquired for $6,840. The asset has an estimated useful life of six years (72 months) and no salvage value . Using the straight-line depreciation method,...

Kolton Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $23,800....

On January 1, 2014, the ledger of Hiatt Company contained these liability accounts. Accounts Payable.......... $42,500 Sales Taxes Payable........ 6,600 Unearned Service Revenue..... 19,000 During...

Suppose the two countries we considered in the numerical example on pages 166169 were to integrate their automobile market with a third country, which has an annual market for 3.75 million...

The manager of the greeting card section of Harveys department store is considering her order for a particular line of holiday cards. The cost of each box of cards is $3; each box will be sold for $5...

Lena Holden began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Holden (the owner) completed these transactions: a. Owner invested...

The following are the financial statements of Nosker Company. Additional data: 1. Dividends declared and paid were $20,000. 2. During the year equipment was sold for $8,500 cash. This equipment cost...

For a recent 2-year period, the balance sheet of Franklin Company showed the following stockholders' equity data at December 31 in millions. (a) Answer the following questions. (1) What is the par...

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...

a. 1. The statement is entitled Consolidated Balance Sheets.'' What does it mean to have a consolidate balance sheet? 2. For subsidiaries where control is present, does Kellogg have 100% ownership?...

1. What issues should systems analysts and programmers discuss before they proceed with the project? 2. As a systems analyst on this project, how would you describe your primary responsibilities, and...

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...

Sally Stanford is buying an automobile that costs $12,000. She will pay $2000 immediately and the remaining $10,000 in four annual end-of-year principal payments of $2500 each. In addition to the...

Purchasing Department cost drivers, activity-based costing, simple regression analysis. Fashion Flair operates a chain of 10 retail department stores. Each department store makes its own purchasing...

The trial balance of Robbie Gould Co. shown below 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...

The following balance sheet was prepared for Jared Corporation as of December 31, 2011. The following additional information relates to the December 31, 2011, balance sheet. (a) Cash includes $4,000...

Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2013 are: All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first...

Naylor Company had $210,000 of net income in 2013 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per unit data...

Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it...

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,...

Abernathy Corporation was organized on January 1, 2010. It is authorized to issue 10,000 shares of 8%, $50 par value preferred stock, and 500,000 shares of no par common stock with a stated value of...

Maher Inc. reported income from continuing operations before taxes during 2012 of $790,000. Additional transactions occurring in 2012 but not considered in the $790,000 are as follows. 1. The...

Capital budget methods, no income taxes Riverbend Company runs hardware stores in a tristate area. Riverbends management estimates that if it invests $250,000 in a new computer system, it can save...

Elston Corporation had the following stockholders' equity accounts on January 1, 2014: Common Stock ($5 par) $400,000, Paid-in Capital in Excess of Par- Common Stock $200,000, and Retained Earnings...

Irrigate Smart Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On February 17 of the current year, Irrigate Smart Inc. reacquired 50,000 shares of its common...

Jayzee Company manufactures a variety of products in a variety of departments and evaluates departments and departmental managers by comparing actual cost and output relative to the budget....

Gross Profit Method Zidek Corp. requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $38,000. Purchases since January 1 were $92,000; freight-in,...

A Juliet Burke, a former professional tennis star, operates Juliets Tennis Shop at the Mitchell Lake Resort. At the beginning of the current season, the ledger of Juliets Tennis Shop showed Cash...