American Laser, Inc., reported the following account balances on January 1. The company entered into the following transactions during the year. Jan. 15 Issued 5,000 shares of $1 par common stock for...

Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan?s Social Security number is 111-11-1112, and Freida?s is...

Steven Edwards has had difficulties throughout the audit of Kingston Catering. The company is a long-standing client of the audit firm and there have been no problems in the past. However, four...

Information concerning the capital structure of the Petrock Corporation is as follows: During 20X1, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred...

You are considering an option to purchase or rent a single residential property. You can rent it for $2,000 per month and the owner would be responsible for maintenance, property insurance, and...

Zang Services Inc. accounts for the lease of a truck. The lease includes a residual value guarantee at the end of the lease term of $16,000. Zang estimates that the likelihood that the residual value...

On September 1, 2019, Conboy Construction signed a contract with Venuti Enterprises to construct a new corporate headquarters and parking garage on land that Venuti owns. Conboy determines that...

On January 1, 20X0, Vick Company purchased a trademark for $400,000, which had an estimated useful life of 16 years. On January 1, 20X4, Vick paid $60,000 for legal fees in a successful defense of...

The bookkeeper for Garfield Corp. has prepared the following statement of financial position as at July 31, 2020: The following additional information is provided: 1. Cash includes $1,200 in a petty...

Use the data in JTRAIN98 to answer this question. The variable unem98 is a binary variable indicating whether a worker was unemployed in 1998. It can be used to measure the effectiveness of the job...

Which is the opposite of incurring an expense? a. Incurring an opportunity cost b. Incurring a fixed cost c. Incurring a mixed cost d. Incurring a step cost

The ice cream store Cool Stuff sells exotic ice creams, including Tropical Cream and Green Mango. Cool Stuff has been varying the prices of these two flavors over the past 12 weeks and has recorded...

Coach has been described as a textbook lesson on how to revitalize a brand. The same could be said for Burberry, the British fashion goods company discussed in Chapter 1. Locate some articles about...

Presented below is financial information related to the 2020 operations of Sea Legs Cruise Company. Maintenance and repairs expense ............$ 95,000 Utilities expense...

The audit senior on the audit of Frankel Factors is preparing the audit plan for the year ended June 30, 2016. The following notes relate to the payroll application system that went live on January...

The Hickory Company manufactures wooden desks. Management schedules overtime every weekend to reduce the backlog on the most popular models. The automatic routing machine is used to cut certain types...

Patterson Shirt Company sells on credit and manages its own receivables. Average experience for the past three years has been the following: The owner of Patterson is considering whether to accept...

Hatami and Partners completed the fieldwork for the December 31, 2020, audit of Harbinger Corporation on March 1, 2021. The financial statements and auditors report were issued and mailed to...

Capistrano Corporation, whose reporting currency is the franc (F), establishes a foreign subsidiary, whose reporting currency is the escudo (E). On January 1, Year 1, Capistrano contributes Cash of...

Bosco Company adopted the dollar-value LIFO retail method at the beginning of 2021. Information for 2021 and 2022 is as follows, with certain data intentionally omitted: Required: Determine the...

While reading a recent issue of Health & Fitness, a trade journal, Brandon Wilde noticed an ad for equipment he had been seeking for use in his business. The ad offered oxygen therapy equipment under...

Mushi Heavy Industries manufactures primarily heavy machinery and drilling installations for mining, oil wells, and other similar industries. The vice-president of the transport division, newly...

The equity sections from the 2020 and 2021 balance sheets of Fab-Form Industries Inc. appeared as follows: Fab-Form Industries Inc. Equity Section of the Balance Sheet December 31, 2020 Contributed...

The County of Maxnell decides to create a waste management department and offer its services to the public for a fee. As a result, county officials plan to account for this activity as an enterprise...

The beginning inventory for Rhodes Co. and data on purchases and sales for a three-month period are shown in Problem 7-1B. Data From Problem 7-1B. The beginning inventory of merchandise at Dunne Co....

The Sports Club is a private club with facilities for seven different sports, and also has a general fitness training area. The clubs premises include a lounge and a restaurant, and a space that is...

Drums, bins, boxes, and other containers that are used in the petroleum industry are sold by Holden Inc. One of the company's products is a heavy-duty, environmentally friendly, corrosion-resistant...

On August 31, 2018, Chickasaw Industries issued $25 million of its 30-year, 6% convertible bonds dated August 31, priced to yield 5%. The bonds are convertible at the option of the investors into...

Find point estimates for the mean and standard deviation of the Months Customer data in the Credit Risk Data file. Draw five random samples of sizes 50 and 250 from the data using the Sampling tool....

Using transactions listed in P2-2 for Restart Technology Services indicate the effects of each transaction on the liquidity metric Cash and profitability metric Net Income Cash Basis. Data from P2-2...

Pathfinder College is a small liberal arts college that wants to improve its admissions process. In particular, too many of its incoming freshmen have failed to graduate for a variety of reasons,...

Janna White sat in her office, perplexed. Two days previously, she had been given responsibility to lead a team on a project that would have a significant impact on the investment decision under...

If t i 1 > t i 2 what is the market consensus forecast about the one-year forward rate one year from now? Is this rate above or below todays one-year interest rate? Explain.

One concern expressed by Mr. Dyke is that the English national team may be suffering because fewer English players can develop in the English Premier League. Jrgen Klinsmann, coach of the U.S....

The NOI for a small income property is expected to be $150,000 for the first year. Financing will be based on a 1.2 DCR applied to the first year NOI, will have a 10 percent interest rate, and will...

In the capital budgeting model in Figure 6.5, investment 4 is tied for the largest ROI, but it is not selected in the optimal solution. How much NPV will be lost if Tatham is forced to select...

Barbara Lynch is the product manager for a line of skiwear produced by HeathCo Industries and privately branded for sale under several different names, including Northern Slopes and Jacque Monri. A...

Given that Madrigal Pharmaceuticals was up by 516 percent for 2017, why didnt all investors hold Madrigal?

Assume the same facts as in E17-5. On July 1, 2019, the customer realizes that she needs less data in her wireless plan and downgrades to the unlimited talk and 2 GB data plan for the remaining term...

Organic Market, a grocery store, purchased supplies for $12,000 cash on July 1, 2020. As of December 31, 2020, $7,000 had been used and $5,000 of supplies had not been used. Organic Market prepares...

Oakridge Leasing Corporation signs an agreement on January 1, 2020, to lease equipment to LeBlanc Limited. Oakridge and LeBlanc follow ASPE. The following information relates to the agreement. 1. The...

Matusek Corporation has been experiencing a higher than expected number of warranty claims in the current year, due mainly to less than ideal product design. For this reason, the warranty expense...

In 20X2, ABBA Fabrics, Inc., elected to change its method of valuing inventory to the weighted average cost (WAC) method, whereas in all prior years inventory was valued using the last-in, firstout...

Student researchers at Hope College conducted an experiment to determine whether students memorize material better if they are taking notes on paper using handwriting as opposed to taking notes on a...

Ryan Ross (111-11-1112), Oscar Omega (222-22-2222), Clark Carey (333-33-3333), and Kim Kardigan (444-44-4444) are equal active members in ROCK the Ages LLC. ROCK serves as agents and managers for...

Vera Bradley, Inc. (VRA) is a leading designer, producer, and retailer of fashion handbags, accessories, and travel items for women. Income statements for two recent years for Vera Bradley are as...

1. Does Tims conclusion make sense to you, i.e. do you agree with it? What specific information could Perfection Call Center provide moving forward that would demonstrate to new clients that...

Theres a saying in the business world that nothing fails like success. Take Gap, for example. How can a fashion retailer that was once the source for wardrobe staples such as chinos and white...

Using Table 6-2 as a guide, compare and contrast predictive and prescriptive analytics. How might these be used in an audit? Or a continuous audit? Table 6-2 Example CAATS Analytic Type Example Audit...

The comparative financial statements of Sunset Pools, Inc., for 2020, 2019, and 2018 included the following select data: Requirements 1. Compute the following ratios for 2020 and 2019: a. Current...

Portage Corporation began 2018 owing notes payable of $4.0 million. During 2018, Portage borrowed $1.9 million on notes payable and paid off $1.7 million of notes payable from prior years. Interest...

Samantha A. Cranston, age 37, is single and lives with her dependent mother at 426 Grouse Avenue, Allentown, PA 18105. Her Social Security number is 111-21-1113. 1. Samantha is a licensed...

You work for a private wealth management firm that follows an "external investment" model, whereby it decides which outside managers it should recommend to clients. One mutual fund that is a...

Brady Sports began operations on January 2, 2020. The following stock record card for footballs was taken from the records at the end of the year. A physical inventory on December 31, 2020, reveals...

Assume that in addition to estimating its ending inventory by the retail method, Harmony Co. of Exercise 6-13 also took a physical inventory at the marked selling prices of the inventory items at the...

Candy Craze purchased and installed a machine on January 1, 2020, at a total cost of $296,800. Straight-line depreciation was taken each year for four years, based on the assumption of a seven-year...

Bryan Trucking Corporation began business on January 1, 20X1, and consists of the parent entity, domiciled and operating in Country X, and a subsidiary operating in Country Y. Bryan is required, as a...

BJ's Wholesale Club Holdings, Inc. provides the following description of its revenue recognition policies for membership fees and its reward program. Performance Obligations: The Company identifies...

1. Can you imagine any risks or dangers that Western companies might face in pursuing base of the pyramid strategies? 2. Is there anything that Western companies might learn from base of the pyramid...

The North Valley Real Estate data reports information on the homes sold last year. Adam Marty recently joined North Valley Real Estate and was assigned twenty homes to market and show. When he was...

Lannion and Co. is engaged in providing and marketing a standard advice service. Summarised results for the past two months reveal the following: There were no price changes of any description during...

The Income Statement section of the Johnson Company worksheet for the year ended December 31, 2019, has $199,000 recorded in the Debit column and $215,345 in the Credit column on the line for the...

Airdrie Lanes preferred shares pay an annual dividend of $1.20, payable on a quarterly basis. Current yields of similar risk preferred shares are 3 percent. What is the price of each preferred share?

On January 1, 2017, assume that Turner Construction Company agreed to construct an observatory for Dartmouth College for $120 million. Dartmouth College must pay $60 million upon signing and $30...

Suppose the demand (in thousands) for a toaster is given by 100p 2 , where p is the price in dollars charged for the toaster. a. If the variable cost of producing a toaster is $10, what price...

Abigail contributes land with an adjusted basis of $56,000 and a fair market value of $58,000 to Blair and Partners, a partnership. Abigail receives a 50% interest in Blair. What is Blairs basis in...

Richard and Christine McCarthy have a 19-year-old son (born 10/2/99; Social Security number 555-55-1212), Jack, who is a full-time student at the University of Key West. Years ago, the McCarthys...

The partners who own Jefferson Rafts Co. wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated as Jefferson Rafts, Inc. The charter from the state...

Boston Beanery, a U.S.-based company, establishes a branch in Great Britain in January of Year 1, when the exchange rate is US$1.30 per British pound (). During Year 1, the British branch generates...

The scene: John and Marsha hold hands in a cozy French restaurant in downtown Manhattan, several years before the mini-case in Chapter 9. Marsha is a futures-market trader. John manages a $250...

The Shome Corporation, a firm in the 21 percent marginal tax bracket with a 15 percent required rate of return or cost of capital, is considering a new project. The project involves the introduction...

Huddart Company gave a creditor a 90-day. 8% note payable for $7.200 on December 16. a. Prepare the journal entry to record the year-end December 31st accounting adjustment Huddart must make. (Round...

On January 1, 2024, Power Ltd. issued bonds with a maturity value of $5 million for $4,797,000, when the market rate of interest was 8%. The bonds have a contractual interest rate of 7% and mature on...

Jerry Stevenson is the manager of a travel agency. He wants to build a model that can predict whether or not a customer will travel within the next year. He has compiled a data set that contains the...

Refer to the scenario described in Problem 2-1A. Problem 2.1 obias Eaden started a sole proprietorship named Sky High Ads. A customers message can be displayed on an airplane banner across the city....

Satellite World was founded in 2017 to apply a new technology for efficiently transmitting closed-circuit (cable) television signals without the need for an in-ground cable. The company earned a...

Sadie Hawkins owns The Education Supply Center, a small store that sells educational supplies. Hawkins recently approached the local bank for a loan to finance a planned expansion of her store....

An investor is considering five possible investment strategies. The investor cares only about the expected payoff and possibly the variance of each strategy. The following table shows the payoffs...

Glimmer Pools purchased $50,000 of 7% AKL bonds on January 1, 2018, at a price of 104.2 when the market rate of interest was 6%. Glimmer intends to hold the bonds until their maturity date of January...

An FI holds a 15-year, $10 million par value bond that is priced at 104 with a yield to maturity of 7 percent. The bond has a duration of eight years and the FI plans to sell it after two months. The...

1. Explain the following concepts in the context of the case and how it relates to individual and organizational factors that contribute to fraud: Rationalizations for unethical actions. Stakeholder...

Described below are three independent and unrelated situations involving accounting changes. Each change occurs during 2021 before any adjusting entries or closing entries are prepared. a. On...

Tru Developers, Inc., sells plots of land for industrial development. Tru recognizes income for financial reporting purposes in the year it sells the plots. For some of the plots sold this year, Tru...

Jared Payne owns Payne?s Sneaker Shop. (Balances as of March 1 are provided for the accounts receivable and general ledger accounts as follows: Durant, $250 Dr.; Lanham, $550 Dr.; Pry, $800 Dr.;...

Suppose you are the sole shareholder of a bank with deposits of $1,200,000 and assets of $1,000,000. There is no reserve requirement. Your liability in the bank is limited by law to your investment...

Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year: V. Hoffman (general office...

The records of Eaton Aviation include the following accounts for inventory of aviation parts at July 31 of the current year: Requirements 1. Prepare a partial income statement through gross profit...

Thompson Turf Trimmers, Inc., reported the following financial statements for 2018: Calculate the following investing cash flows; enter all amounts in thousands. a. Acquisitions of plant assets (all...

Shanken Corp. issued a 30-year, 5.9 percent semiannual bond three years ago. The bond currently sells for 106 percent of its face value. The companys tax rate is 22 percent. a. What is the pretax...

Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $68, and the book value per share is $8. The company also has two bond issues outstanding. The first bond...

For the current year ending December 31, Fromm Industries expects fixed costs of $930,000, a unit variable cost of $53, and a unit selling price of $63. a. Compute the anticipated break-even sales...

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2017, were inventory, $48,900; total assets, $189,400;...

On January 1, 20X1, Railcar Leasing Inc. (the lessor) purchased 10 used boxcars from Railroad Equipment Consolidators at a price of $8,749,520. Railcar leased the boxcars to the Reading Railroad...

Although the company has already established medical and retirement plan benefits, Toni Prevosti wants to consider other benefits to attract employees. As the companys accountant, you have been...

Lawrence M. Clarke, Inc., was the general contractor for construction of a portion of a sanitary sewer system in Billings, Michigan. Clarke accepted Kim Draeger's proposal to do the work for a...

Jericho Vehicles manufactures special-purpose all-terrain vehicles primarily for the military and government agencies in Canada and for foreign governments. The company is planning to bid on a new...

1. What are the three phases in the IT strategic planning process? Describe the steps in each phase. 2. Intel formulates a two-to-five-year strategic plan. Given this time frame, why is the plan...

You have been given the following return information for two mutual funds (Papa and Mama), the market index, and the risk-free rate. Calculate the Sharpe ratio, Treynor ratio, Jensens alpha,...

The following auditors report was drafted by a staff accountant of Nathan and Matthew, CPAs, at the completion of the audit of the comparative financial statements of Monterey for the years ended...

For each of the following scenarios, indicate whether or not independence-related SEC rules are being violated, assuming that the audit entity is a public company. Briefly explain why or why not. a....