On July 31, 2012, Mexico Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division of Mexico. Conchita reported the following balance sheet at the...

Images.com is a small Internet retailer of high-quality posters. The company has $800,000 in operating assets and fixed expenses of $160,000 per year. With this level of operating assets and fixed...

Pantanal, Inc., manufactures car seats in a local factory. For costing purposes, it uses a first-in, first-out (FIFO) process costing system. The factory has three departments: Molding, Assembling,...

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...

Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began in 2011 and was completed in 2012. Data relating to the contract are summarized...

1. Calculate some key profitability, activity, leverage, liquidity, and market ratios for Apple and BlackBerry over time. 2. Conduct a dynamic firm profitability analysis over time (fiscal years 2008...

The information listed below refers to the employees of Lemonica Company for the year ended December 31, 2016. The wages are separated into the quarters in which they were paid to the individual...

Kobe Company has a factory machine with a book value of $90,000 and a remaining useful life of 5 years. It can be sold for $30,000. A new machine is available at a cost of $300,000. This machine will...

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...

On January 29, Quality Marble Inc., a marble contractor, issued for cash 75,000 shares of $10 par common stock at $23, and on May 31, it issued for cash 100,000 shares of $4 par preferred stock at...

The materials handling manager of a manufacturing company is trying to forecast the cost of maintaining for the companys fleet of over the road tractors. The manager believes that the cost of...

Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The...

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...

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...

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...

Graser Trucking has $12 billion in assets, and its tax rate is 40%. Its basic earning power (BEP) ratio is 15%, and its return on assets (ROA) is 5%. What is its times-interest-earned (TIE) ratio?

Power Brite Painting Company specializes in refurbishing exterior painted surfaces that have been hard hit by humidity and insect debris. It uses a special technique, called pressure cleaning, before...

Review the Comprehensive Annual Financial Report (CAFR) that you obtained. 1. How does the government classify its governmental expenditures, by function or by object? Are the classifications...

The Wall Street Journal reported that Juniper Networks, Inc.a maker of company network equipmentplans to offer its more than 1,000 employees the opportunity to reprice their stock options. Junipers...

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...

JFK Corp. factors $300,000 of accounts receivable with LBJ Finance Corporation on a without recourse basis on July 1, 2008. The receivables records are transferred to LBJ Finance, which will receive...

The town barber shop can accommodate 35 customers per day. The manager has determined that if two additional barbers are hired, the shop can accommodate 80 customers per day. What are the design and...

1. Do the clinical trials in Albania. Youll be able to bring the drug to market faster and cheaper, which will be good for AH Biotechs employees and investors and good for the millions of people who...

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...

1. Why had Sony been successful in the past (e.g., with the introduction of the Walkman, PlayStation, the CD, and the VAIO computer line)? 2. What was Mr. Ideis assessment of strategic alliances...

As a study aid, your classmate Pascal Adams has prepared the following list of statements about decision-making and incremental analysis. 1. The first step in managements decision-making process is,...

Calculate the after-tax return of a 4.65 percent, 20-year, A-rated corporate bond for an investor in the 15 percent marginal tax bracket. Compare this yield to that of a 3.25 percent, 20-year,...

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...

The Alpine House, Inc., is a large retailer of winter sports equipment. An income statement for the companys Ski Department for a recent quarter is presented below: Skis sell, on the average, for...

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...

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...

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...

Boyle's Home Center, a retailing company, has two departments, Bath and Kitchen. The company's most recent monthly contribution format income statement follows: A study indicates that $370,000 of the...

A firm has a tax burden ratio of .75, a leverage ratio of 1.25, an interest burden of .6, and a return on sales of 10%. The firm generates $2.40 in sales per dollar of assets. What is the firms ROE?

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...

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...

PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units. The utilities and maintenance costs...

On August 31, 2015, the general ledger of The Dean Acting Academy shows a balance for cash of $7,944. Cash receipts yet to be deposited into the checking account total $3,338, and checks written by...

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),...

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...

The following information pertains to the Davenport plant for the month of May (all materials are added at the beginning of the process): Required Compute the cost per equivalent unit for materials...

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...

1. Given the facts of this case, is it possible for Brenda and Martin to reach a satisfactory result? Explain. 2. How could an organization go about identifying and measuring the personal...

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...

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.)...

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...

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...

Complete the table below and plot the EAC as a function of time. What are yourconclusions? Cumulative Cost, in Thousands Variance S Week BCWS BCWP ACWP Schedule Cost EAC 50 70 90 120 130 140 165 200...

Cook Company estimates that 360,000 direct labor hours will be worked during the coming year, 2012, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data, shown on...

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...

Did Enrons bankers, auditors, and attorneys contribute to Enrons demise? If so, what was their contribution? Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant...

The manager of Wongs Food Express estimates operating costs for the year will total $300,000 for fixed costs. a. Find the break-even point in sales dollars with a contribution margin ratio of 40...

Thirteen students entered the business program at Sante Fe College 2 years ago. The following table indicates what each student scored on the high school SAT math exam and their grade- point averages...

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...

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...

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...

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...

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...

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...

What limits the usefulness to managers of fixed budget performance reports?

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...

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...

A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner's home, follows. INSTRUCTIONS 1. Record balances as of December 31 in the ledger accounts. 2....

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?

Contrast the prime law for projects, Never surprise the boss, with the corporate adage Bad news never travels up.

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...

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?

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...

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...

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May: Instructions 1. For both companies, determine the...

Why is the life cycle curve often S shaped?

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...

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...

Maxwell Communications was organized on December 1 of the current year and had the following account balances at December 31, listed in tabular form: Early in January, the following transactions were...

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...

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....

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...

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...

An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear trend equation is Ft = 124 + 2 t, and...

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...

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...

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...

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...

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...

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...

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...

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....

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,...

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...

Flexible-budget and sales volume variances. Marron, Inc. produces the basic fillings used in many popular frozen desserts and treatsvanilla and chocolate ice creams, puddings, meringues, and fudge....

A machine at the Pacific Fruit Company fills boxes with raisins. The labeled weight of the boxes is 9 ounces. The company wants to construct an R-chart to monitor the filling process and make sure...

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...

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...

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...

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...

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?

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...