Get college assignment help at uniessay writers Problem 16-3 FA Thead, Head Accountant, is reviewing his company’s investment in a cement plant. The company paid 30,000,000 five years ago to acquire the plant. Now top management is considering an opportunity tations before he decides its fate The company’s discount rate for present value.computations is 9% Expected and actual cash flows follow. Year 1 o00,000 Year 2 9,840,000 Year 3 Year 5 8,400,000 Year 4 Expected 9,960,000 ,120,000 9,840 REQUIRED Compute the net present value of the expected cash flows as of the beginning of the investment f the beginning of the investment. 2. Compute the net present value of the actual cash flows as What do you conclude from this postaudit? Set up a mini table of present value factors to make your calculations easier.
7. Mutt Corp provided the following 2018 information: $100,000 10,000 27% 22% Pretax Financial Income Advance rent received from tenant 2018 tax rate Future years’ tax rate How much will be reported as total income tax expense on Mutt’s 2018 income statement? a. $29,700 b. $27,500 c. $31,900 d. $27,000
King’s Motors Limited specialises in selling automotive accessories and uses perpetual inventory system. The business provides the following records for one of its products, leather car seat covers, for the month of May. All amounts have been indicated GST 9.22 exclusive Beginning inventory 70 units @ $100 each Bought 250 units@ $110 Sold 260 units @ $300 each May 1 May 3 May 8 May May 15 May 27 May 30 Sold 30 units @ $350 each Bought 100 units @ $120 each Bought 150 units @ $140 each Sold 120 units @ $360 each Requi Determine the ending inventory, cost of goods sold and profit figure following costing methods: (i) d: at 31 May 2014 under the FIFO perpetual inventory costing method (ii) LIFO perpetual inventory costing method (iii) Moving average perpetual inventory costing method (IV) Specific identification inventory costing method: the 8 May sales were from beginning inventory and the remainder was from the 3 May purchases, the 9 May sales were from 3 May purchases and the 30 May sales were from the 27 May purchases. All your workings must be shown clearly. dieates the
Your answer is partially correct. Try again Bridgeport Warehouse distributes hardback books to retail stores and extends credit to all of its customers. During the month of June, the following merchandising transactions occurred. Purchased books on account for $1,855 from Catlin Publishers June 1 Sold books on account to Garfunkel Bookstore for $1,450. The cost of the merchandise sold was $750. 3 6 Received $55 credit for books returned to Catlin Publishers. Paid Catlin Publishers in full Received payment in full from Garfunkel Bookstore. 15 Sold books on account to Bell Tower for $1,450. The cost of the merchandise sold was $700. 17 Purchased books on account for $750 from Priceless Book Publishers. 20 Received payment in full from Bell Tower. 24 Paid Priceless Book Publishers in full. 26 Sold books on account to General Bookstore for $2,050. The cost of the merchandise sold was $970 28 Granted General Bookstore $240 credit for books returned costing $70. 30 Prepare a tabular summary to record the transactions for the month of June for Bridgeport Warehouse using a perpetual inventory system. (Enter negative amounts using eithera negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Stockholders’ Equity Assets Liabilities Retained Earnings Common Stock Cash Accts. Rec. Inv. Accts. Pay. Rev. Exp. June 1 1855 185 Sales revenue 3 1450 1450 -750 Cost of goods sold -750 6 -55 -55 -1800 -1800 x x 15 Sales revenue x x goods sold Cost X x 20 24 x x x 26 Sales revenue 28 x goods sold Cost x Sales returns
Questions: What are the auditor’s responsibilities for events that arise after the date of the audit report? 1 2. List some of the steps that the audit team should take regarding this situation Since it looks like fraud has been discovered, what does this mean about the 3. client’s internal controls? What about the substantive procedures previously completed for this year or prior years? C
Wo methods? Richard Company began operations in 2017, determines its ending inventory at cost and at lower of cost or net realizable value, on an individual-item basis. The company uses allowance account to record the inventory write-down to net realizable value under the cost of good sold method. The information on inventory is as below: (1) Ending inventory Date Cost Net Realizable Value $325,000 370,000 12/31/17 $350,000 12/31/18 400,000 (2) There were 2,000 units of product X on hand at December 31, 2017. The accountant found that Product X was incorrectly valued at $39 per unit for reporting purposes, but all 2,000 units were sold in 2018. Details on relevant per-unit data for product X: $41 Cost 55 Selling price Cost to sell Normal profit 18 Requirements: 1. Prepare the journal entries required at December 31, 2017, and December 31, 2018 2. What was balance for allowance of product X recorded at 31/12/20172 What is the correct balance for allowance of the product X? 3. Compute the effect of the error on net income for 2017 and the effect on net income for 2018, and indicate the direction of the misstatement for each year.
The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statenent For the year ended December 31, 2021 $2, 470, 000 5, 500 Net sales Gain on sale of land 2, 475, 500 Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Incone tax expense Total expenses $1, 585, 000 602. 000 20. 000 21, 000 67, 000 2, 295, 000 $ 180, 500 Net incone VIRTUAL GAMING SYSTEIS Balance Sheets December 31 2021 2020 Assets Cur rent assets $ 158, 680 72. 300 140, 500 $101, 660 87, 000 132, 000 5. 040 Cash Accounts receivable Inventory Prepaid rent Long-tem assets Irvestments Land Equipnent Accunul at ed depreciation 3, 220 192, 000 208, 500 110, 000 257, 000 224, 000 207, 000 (103, 500) $796, 200 (123, 500) Total assets $ 875, 700 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term 1iabilities Not es parable Stockholders equity Common stock Ret ained eaminge $ 28. 500 $ 05, 000 3, 900 27, 800 2, 700 30, 500 255, 000 238, 000 317, 000 243, 500 270. 000 170, 000 $ 796, 200 Tot al liabilities and stockholder: equity $ 875. 700 Saved Current liabilities Accounts payable Interest payable Income tax payable Long-tem liabilities: Notes payable Stockholders equity Conmon stock Ret ained eamings $28, 600 $ 85, 000 2, 700 30, 500 3, 900 27, 800 255 000 238, 000 317, 000 243. 500 270, 000 170, 000 $875, 700 $ 796, 200 Tot al liabilities and stockholders’ equity Additional Information for 2021: 1. Purchase additional investment in stocks for $82.000 2 Sell land costing $48,500 for $54,000, resulting in a $5,500 gain on sale of land. 3. Purchase $17,000 in equipment by issuing a $17,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $107,000. 5. Issue common stock for $47000. Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List casi outflows and any decrease in cash as negative amounts.) VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Net income 180,500 Adjustments to reconcile net income to net cash fows from operating activities Gain (on sale of land) Depreciation expense (5,500) 20,000: Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Decrease in accounts payable Increase in interest payable Decrease in income tax payable
Archambeau Products Company manufactures office furniture. Recently, the company decided to develop a formal cost accounting system and classify all costs into three categories. Categorize each of the following items as being appropriate for (1) cost tracing to the finished furniture, (2) cost allocation of an indirect manufacturing cost to the finished furniture as a nonmanufacturing item. Problem 1 (10 points) (3) or Cost Tracing Nonmanu- Cost Item facturing Allocation Carpenter wages Depreciation – office building Glue for assembly Lathe department supervisor Lathe depreciation Lathe maintenance Lathe operator wages Lumber Samples for trade shows Metal brackets for drawers Factory washroom supplies
Get college assignment help at uniessay writers General Ledger Accounts Title Debit Credit Cash 468,236,170 Accounts Receivable 47,294,000 Allowance for Bad Debts 1,181,880 Inventory 13,556,530 Notes Receivable 400,000 Accumulated Depreciation 74,937,000 Equipment 114,940,000 Buildings 1,000,000 Land 2,914,300 Patents 180,000 Accumulated Amortization 53,000 Interest Receivable 4,666 Prepaid Insurance Expense Accounts Payable 10,000 95,550,000 Unearned Rent Revenue Common Stock 120,006,500 APIC-Common Stock 266,266,500 Retained Earnings 73,230,000 65,421,000 10,000 Sales Revenue Rent Revenue 4,666 Interest Revenue Loss on Sale of Equipment Cost of Goods Sold 19,600,000 Depreciation Expense
Answer the following questions using the information below The following information is for Banett Corporation: Product X: Revenue $10.00 $2.50 Variable Cost Product Y: Revenue $15.00 Variable Cost $5.00 $50,000 Total fixed costs What is the breakeven point assuming the sales mix consists of two units of Product X and one unit of Product Y? O A. 2,000 units of Y and 4,000 units of X O B. 1,000 units of Y and 2,000 units of X O C. 2,013 units of Y and 4,025 units of X O D. 1,013 units of Y and 2,025 units of X
a. Standard price $ 6.80 per pound b. per pound pounds C d.
dy awsuy xoeu il i pue spjay upa aui ui aqunu Aue jajua 9/ dns dx3 pal: dx3 dV pu: leide qen Equity apuo eun u ou o es e uo uoesue a 0 ns oq ajep aes aup suosen oy sol to sue unok o soJ8z Aue Jaque jou ogl soup uosde nok Joj sexoq JOMSUE uesse t o d oogenbe bugunooe a to pga s Buzeue ee ta ano uj aouejeq aup n an uo uon a a sMOBO eun uOpesuen pea io n9 en uo uoesuen eun u bUiuuiBaq ‘oug e je uogpesuen auo AgeobogouoJup suaa oun 0zjeuy asuedxg dg spuopjaiG AIg penquauo uo oaa w o d squnoood/N pesn suogew saasaned Jo ubjs snu an unooe Kira Steinbeck opened a medical practice. During July, the first month of operation, the business, titled Kira Steinbeck, MD, experienced the following events: E1-29 (similar to) Question Help 4 of 6 (4 complete) Homework: Chapter 1 Assignment HW Score: 38.27 % , 2.3 of 6 1 Assignment HW Score: 4 of 6 (4 complete) Quring July, the first month of operation the business titled Kira Steinbeck MD, experienced the fol More Info bllows the t er boxes a separate lances. E v= Divid Jul 6 Received a contribution of $75.000 from Steinbeck and opened a bank account in the name of K Steinbeck, MD. The corporation issued common stock to Steinbeck 9 Paid $58.000 cash for land 12 Purchased medical supplies for $2,500 on account. 15 Officially opened for business 20 Paid cash expenses: employees’ salaries, $1,500; office rent $1,300, utilities, $350 31 Earned service revenue for the month. $8.000, receiving cash 31 Paid $1.700 on account Print Done elds Clear All X
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$614,400 $614,400 Assigned fund balance consists of outstanding encumbrances. Required Prepare the budget entry that was made at January 1,2020. b. Calculate the balance in fund balance-unassigned on December 31, 2019. Prepare the required closing entries at year-end d. Prepare the general fund statement of revenues, expenditures, and changes in fund balances for 2020. Prepare the general fund balance sheet at December 31, 2020. C. e P10.12 General Fund-Entries and Financial Statements Below are the July 1, 2019 balances for the general fund of Montana County. The county’s fiscal year ends June 30. LO Credit Debit Cash… Taxes receivable. Allowance for uncollectible taxes. Due from special revenue fund $120,000 22,500 $14,000 15,000 Inventories.. 7,500 Accounts payable. Fund balance-nonspendable. Fund balance-assigned.. Fund balance-unassigned 7,500 7,500 3,000 133,000 Totals $165,000 $165,000 State and Local Governments: Introduction and General Fund Transactions Montana County uses the purchases method for inventories, and the GAAP budgetary basis for encum- brances outstanding at year-end. Assigned fund balance consists of outstanding encumbrances. The begin- ning balance for taxes receivable are uncollected 2019 taxes. The following events occurred in fiscal 2020 1. Passed the 2020 budget, consisting of expected revenues from property taxes, fees and licenses of $370,500, expected state grants of $40,000, estimated expenditures of $370,000 , and expected trans fers out of $50,00o. Accrued the state grants 2. Levied property taxes of $300,000, of which 5 percent are estimated to be uncollectible. Collected $280,000 of these taxes. 3. Received $25,000 in state grants 4. Collected $10,000 in 2019 taxes; wrote off the remainder. 5. Transferred $50,000 to the special revenue fund. 6. Received $65,000 in cash for fees and licenses. 7. Received the inventories connected with purchase orders outstanding The bill was $3,200 8. Paid $8,000 to the capital projects fund, as a temporary loan. 9. Received $12,000 from the special revenue fund as partial repayment of a loan made in fiscal 2019 10. Purchased inventories of $45,000 on account. 11. Made other expenditures of $320,000 during the year. Purchase orders outstanding at year-end total $1,600 12. Total accounts payable paid in fiscal 2020 amounted to $367,000. Included are amounts related to expenditures and inventory purchases. 13. Inventories on hand at year-end total $6,000 14. Of the fiscal 2020 taxes uncollected at year-end, $8,000 are expected to be collected within 60 days. as of the end of fiscal 2019 Required Prepare entries necessary at the beginning of the year to record the budget and make any other neces- sary adjustments or accruals. b. a. Prepare entries necessary to record the events of the year and any year-end adjustments Prepare the necessary closing entries for June 30, 2020. d. C. Present, in good form, the statement of revenues, expenditures and changes in fund balances for Montana County for fiscal 2020. Include a reconciliation of beginning and ending fund balances. Present, in good form, the balance sheet for the general fund of Montana County for June 30, 2020. e. 13 Capital Asset and Debt Transactions: Modified Accrual and Full Accrual Accounting A major difference between modified accrual accounting used for the general fund and full accrual accounting
Required: Prepare a complete statement of cash flows using a spreadsheet; report Its operating activitles using the Indlrect method (Enter all amounts as positive values.) Answer is not complete. FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes December 31, 2016 December 31, 2017 Debit Credit Balance sheet-debit 67,900 17.800 S Cash 85.500 21,265 29,850 Accounts receivable 62,825 83,890 203,800 293,050 Inventory Prapaid expenses 805 82875 2,135 1,330 Equipment 120,000 108,375 145,500 592.276 534,060 Balance sheet-credit 42,825 42.125S 67,534 32,750 Accumulated depreciation-Equipment 52,000 132,675 65,141 Accounts payable 5.200 Short-term notes payable 8,400 13.600 54.375 56,125 Long-term notes payable 60,750 59.000 24,500 49.500 Common stock, $5 par value 162,250 186,750 Paid-in capital in excess of par value, common stock 40,500 175,880 592,276 110,175 Retained earnings 117,985 534,080 52,500 Statament of cash flows Operating activities Net income 110,175 21.265 Increase in accounts receivable 29.358 Increase in inventory 805 Decrease in prepaid expenses 67,534 Decrease in accounts payable 32,750 Depreciation expense Loss on sale of equipment 17,125 Investing activities Receipt from sale of equipment 23,825 54,000 Payment to purchase equipment Financing activities 5.200 Borrowed on short-term note 58.125 Payment on long-tem ncte 74,000 Issued common stock for cash 52.500 Payment of cash dividends Non cash investing and financing activities Purchase of equipment financed by long-term note payable 54,375 641,460 713,435 Required: Prepare a complete statement of cash flows; report Its operating actlivitles according to the direct method (Amounts to be deducted should be Indicated witha minus sign.) FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities 0 Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of vear Additional Information on Year 2017 Transactlons a. Purchased equipment for $49,500 cash. b. Issued 12,800 shares of common stock for $5 cash per share. c. Declared and paid $97,000 In cash dividends. Required: Prepare a complete statement of cash flows; report its cash flows from operating activitles according to the dlirect method. (Amounts to be deducted should be Indicated with a minus sign.) GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities 0 0 Cash flows from financing activities 0 Net increase (decrease) in cash Cash balance at Cash balance at end of year 0 of
Problem 11 (10 points) Supply the missing data for each of the following proposals: Proposal A Initial investment Proposal B Proposal C (a) $226,000 $62,900 Annual net cash inflow $60,000 (e) (c) Life, in years 10 10 6 Salvage value $0 $10,000 $0 Payback period in years 5.65 (d) (b) (f) nternal rate of return 24% 12%
Problem 10 (10 points) The Sarasota Corporation manufactures two types of vacuum cleaners, the Victor for nmercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2012 were as follows Static Budget Number sold Contribution margin Total House Mate 20,000 $3,000,000 $4,500,000 Victor 25,000 5,000 $1,500,000 Actual Results umber sold Contribution margin Victor Total 32,000 $3,920,000 $5,200,000 House-Mate 4,000 $1,280,000 What is the contribution margin for the flexible budget? A) $1,200,000 B) $4,200,000 C) $5,200,000 D) $5,400,000 What is the total static-budget variance in terms of the contribution margin? A) $900,000 favorable B) $700,000 favorable C) $200,000 unfavorable D) $360,000 unfavorable What is the total flexible-budget variance in terms of the contribution margin? A) $900,000 favorable B) $700,000 favorable C) $200,000 unfavorable D) $360,000 unfavorable What is the total sales-volume variance in terms of the contribution margin? A) $900,000 favorable B) $1,260,000 favorable C) $200,000 unfavorable D) $360,000 unfavorable What is the total sales-quantity variance in terms of the contribution margin? A) $200,000 unfavorable B) $900,000 favorable C) $360,000 unfavorable D) $1,260,000 favorable AACSB: Analytical skills What is the total sales-mix variance in terms of the contribution margin? A) $200,000 unfavorable B) $360,000 unfavorable C) $900,000 favorable D) $1,260,000 favorable
4) Which of the following is NOT an appropriate term for the required rate of return? A) discount rate B) hurdle rate C) cost of capital D) All of these answers are correct. 5) Which of the following results of the net present value method in capital budgeting is the LEAST acceptable? A) S(5,000) B) S(7,000) C) $(15,000) D) $0 6) The definition of an annuity is: A) similar to the definition of a life insurance policy B) a series of equal cash flows at intervals C) an investment product whose funds are invested in the stock market D) Both A and B are correct. 7) The net present value method focuses on: A) cash inflows B) accrual-accounting net income C) cash outflows D) Both A and C are correct. 8) If the net present value for a project is zero or positive, this means that the: A) project should be accepted B) project should not be accepted C) expected rate of return is below the required rate of return D) Both A and C are correct.
Problem 9 (10 points Aswer the following questions using the information below Jonesville Hospital has been considering the purchase of a new x-ray machine. The existing achi iN operable for five more years and will have a zero disposal price. If the machine is sdisposed now, it may be sold for $90,000. The new machine will cost $650,000 and an will reduee he average amount of time required to take the x-rays and will allow an additional cash investment in working capital of $20,000 will be required. The new machine additional r business to be done at the hospital, The investment is expected to net S60,000 in additional cash inflows during the year of acquisition and $230,000 each additional of use. The new machine has a five-year life, and zero disposal value. These cash tlows wvill generally occur throughout the year and are recognized at the end of each year. Income taxes are not considered in this problem. The working capital investment will not be recovered at the end of the asset’s life. 1) What is the net present value of the investment, as 12% Would the hospital want to purchase the nessuming the required rate of return is machine? 2) What is the net present value of the investment, assuming the required rate of return is 20%? Would the hospital want to purchase the new machine? 3) In using the net present value method, only projects with a zero or positive net present value are acceptable because: Problem 9 (10 points) Answer the following questions using the information below: Jonesville Hospital has been considering the purchase of a new x-ray machine. The existing machine is operable for five more years and will have a zero disposal price. If the machine is disposed now, it may be sold for $90,000. The new machine will cost $650,000 and an additional cash investment in working capital of $20,000 will be required. The new machine will reduce the average amount of time required to take the x-rays and will allow an additional amount of business to be done at the hospital. The investment is expected to net 360,000 in additional cash inflows during the year of acquisition and $230,000 each additional year of use. The new machine has a five-year life, and zero disposal value. These cash flows will generally occur throughout the year and are recognized at the end of each year. Income taxes are not considered in this problem. The working capital investment will not be recovered at the end of the asset’s life. 1) What is the net present value of the investment, assuming the required rate of return 1S 12%? Would the hospital want to purchase the new machine? 2) What is the net present value of the investment, assuming the required rate of return is 20%? Would the hospital want to purchase the new machine? 3) In using the net present value method, only projects with a zero or positive net present value are acceptable because:
The post Question: Problem 16-3 FA Thead, Head Accountant, Is Reviewing His Company’s Investment In A Cement Plant. The Company Paid 30,000,000 Five Years Ago To Acquire The Plant. Now Top Management Is Considering An Opportunity Tations Before He Decides Its Fate The Company’s Discount Rate For Present Value.computations Is 9% Expected And Actual Cash Flows Follow. Year … appeared first on uniessay writers.