Wilcox Electronics uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal as illustrated in this chapter. Wilcox recently completed...
Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2010, the following accounts were included in stockholders equity. Preferred...
Sam and Suzy Sizeman need to prepare a cash budget for the last quarter of 2013 to make sure they can cover their expenditures during the period. Sam and Suzy have been preparing budgets for the past...
Presented below is information related to Gonzales Corporation for the month of January 2008. Instructions Prepare the necessary closingentries. Cost of goods sold $208,000 alary expense Freight-out...
Setterstrom Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1 and July 1 with the following results. June 1: Cash in fund $1.75....
Since its inception, the PCAOB has been criticized by many parties. Summarize the principal complaints that have been directed at the PCAOB. Do you believe this criticism is justified? Explain. What...
1. What are the costs to other stakeholders in society beyond those that Reuters included? How would these costs be estimated? 2. Has the cost of lost reputation been included by Reuters? If no, how...
1. What benefits of entrepreneurship does Sara Blakely appear to have attained? 2. Is the desire to earn an income a key motivator for Blakely? Explain your answer. 3. What was Blakelys opportunity...
At December 31, 2012, Rivera Corporation reported the following plant assets During 2013, the following selected cash transactions occurred.Apr. 1 Purchased land for $2,200,000.May 1 Sold equipment...
Maulder Corporation has income from continuing operations of $290,000 for the year ended December 31, 2014. It also has the following items (before considering income taxes). 1. An extraordinary loss...
How do decisions concerning span of management, the use of committees, and coordination techniques affect organizational structure?
1. China has the most comparative advantages in producing apparel. Free trade theory implies that retailers should import clothing from the most efficient country. Given this, and potential drawbacks...
Gerry Jacobs, a financial analyst for Best Value Supermarkets, has prepared the following sales and cash disbursement estimates for the period August through December of the current year. Ninety...
Barneys Antique Shop has annual credit sales of $1,620,000 and an accounts receivable balance of $157,500. Calculate the average collection period (use 360 days in a year).
Assume a bank loan requires an interest payment of $85 per year and a principal payment of $1,000 at the end of the loans eight-year life. a. How much could this loan be sold for to another bank if...
The accountant for Teresa's Dress Shop prepared the following cash budget. Teresa's desires to maintain a cash cushion of $14,000 at the end of each month. Funds are assumed to be borrowed and repaid...
Jason Armstrong started a business called Campus Delivery Service. After the first month of operations, the trial balance as of November 30, 20--, is as shown on the next page. REQUIRED 1. Analyze...
Heavenly Sounds Corp., an electric guitar retailer, was organized by Mickey Blessing, John Frey, and Nancy Stein. The charter authorized 750,000 shares of common stock with a par of $20. The...
Selected accounts from Murrays Furniture Stores adjusted trial balance as of June 30, 2014, the end of the fiscal year, follow. Required 1. Prepare a multistep income statement for Murrays....
The Howell Company has prepared a sales budget of 43,000 finished units for a 3-month period. The company has an inventory of 11,000 units of finished goods on hand at December 31 and has a target...
Singleton Supplies Corporation (SSC) manufactures medical products for hospitals, clinics, and nursing homes. SSC may introduce a new type of X-ray scanner designed to identify certain types of...
Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The companys current assets, current liabilities, and sales have been reported as...
The comparative statements of Lucille Company are presented here. All sales were on account. Net cash provided by operating activities for 2012 was $220,000. Capital expenditures were $136,000, and...
W. C. Sanders, owner of Fort Engines, a producer of heavy-duty snow blower engines, needs to develop an aggregate plan for the coming year. The company currently uses 20 individuals working 160...
Neuro Instruments uses a manufacturing costing system with one direct-cost category (direct materials) and three indirect-cost categories: a. Setup, production order, and materials-handling costs...
The following expenditures (in thousands) relating to plant assets were made by Lee Jung Ltd. during the first 2 months of 2017. 1. Paid W5,000 of accrued taxes at time plant site was acquired. 2....
Cost-Volume-Profit Analysis and Return on Investment (ROl) posters.com is a small Internet retailer of high-quality posters. The company has $1,000,000 in operating assets and fixed expenses of...
Meena Chavan Corp.s computer chip production process yields DRAM chips with an average life of 1,800 hours and = 100 hours. The tolerance upper and lower specification limits are 2,400 hours and...
1. Analyze the behavior of each party from the perspective of the Six Pillars of Character. Assess the personal responsibility of Ed Giles and Sue Regas for the relationship that developed between...
a. Construct a personal income statement for the Humperdinck family using the following information: salaries, $42,000; mortgage payment, $7,980; food, $2,400; interest income, $150; transportation,...
Zaire Electronics can make either of two investments at time 0. Assuming a required rate of return of 14 percent, determine for each project (a) The payback period. (b) The net present value . (c)...
Flexible budget Brabham enterprises manufactures tires for the Formula l motor racing circuit. For August 2009, it budgeted to manufacture and sell 3000 tires at a variable cost of $ 74 per tire and...
Firms should formulate and implement strategies from an environmental perspective. List eight ways firms can do this.
Multiple-Choice Questions 1. In a make-or-buy decision, a. The company must choose between expanding or dropping a product line. b. The company must choose between accepting or rejecting a special...
On December 1, 2015, Liang Chemical provides services to a customer for $90,000. In payment for the services, the customer signs a three-year, 10% note. The face amount is due at the end of the third...
Pargo Company is preparing its budgeted income statement for 2017. Relevant data pertaining to its sales, production, and direct materials budgets can be found in In addition, Pargo budgets 0.3 hours...
Par Corporation acquired a 90 percent interest in Sag Corporation's outstanding voting common stock on January 1, 2011, for $630,000 cash. The stockholders' equity of Sag on this date consisted of...
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...
ACM is an electronics component manufacturer that has been located in Singapore since 1991, supplying original equipment manufacturers (OEMs) with quality components. In the past several years, ACM...
Ehrlich Co. began business on January 2, 2013. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the...
1. List IKEAs external and internal challenges. Looking at IKEAs challenges, which ones do you think pose the greatest threat? Why? How would you address the challenges? 2. Walmart entered a period...
Hrubec Products, Inc., operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of pulp follow: Hrubec Products...
Lukow Products is investigating the purchase of a piece of automated equipment that will save $400,000 each year in direct labor and inventory carrying costs. This equipment costs $2,500,000 and is...
Georgia Orchards produced a good crop of peaches this year. After preparing the following income statement, the company believes it should have given its No. 3 peaches to charity and saved its...
1. Use the value chain and competitive forces models to evaluate the impact of the Internet on book publishers and book retail stores such as B& N. 2. How are B& N and the book publishers changing...
Cole Corporation issued $400,000, 7%, 20-year bonds on January 1, 2014, for $360,727. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1....
Mark Johnson saves a fixed percentage of his salary at the end of each year. This year he saved $1500. For the next 5 years, he expects his salary to increase at an 8% annual rate, and he plans to...
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,...
1. Do Sanders, Ono, and Lyons have the right to challenge the annual picnics value in communicating the corporate culture values? 2. How would company management at Exterior Lighting know whether the...
The adjusted trial balance of Ravine Corporation at December 31, 2014, includes the following accounts: Retained Earnings $17,200; Dividends $6,000; Service Revenue $32,000; Salaries and Wages...
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...
1. How did Hastings change his use of communications in sending and receiving messages from Pure Software to Netflix? 2. How did Hastings change his use of feedback from Pure Software to Netflix? 3....
A consulting engineer has been engaged to advise a town how best to proceed with the construction of a 200,000 m3 water supply reservoir. Since only 120,000 m3 of storage will be required for the...
Explain the similarities and differences between NPV, PI, and EVA.
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....
Bill and Hillary produce food and clothing. In an hour, Bill can produce 1 unit of food or 1 unit of clothing, while Hillary can produce 2 units of food or 3 units of clothing. They each work 10...
Assume Kader Company has the following reported amounts: Sales revenue $510,000, Sales returns and allowances $15,000, Cost of goods sold $330,000, and Operating expenses $110,000. Compute the...
Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 2014, were as follows: Jan. 3. Issued a check to establish a petty cash fund of $4,500. Feb. 26....
As a buyer for a discount retail chain, you find yourself caught in a maelstrom. Just last month, your chain began selling an economy- priced line of clothing endorsed by a famous movie star. To be...
Assume that on January 1, 2011, Kimberly-Clark Corp. signs a 10-year non-cancelable lease agreement to lease a storage building from Trevino Storage Company. The following information pertains to...
Discuss how a development in a corporations natural and societal environments can affect the corporation through its task environment.
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...
1. What forms of interpersonal power does Larry Ellison use and how does he use them? 2. How do the two faces of power relate to Larry Ellisons actions? 3. Does Larry Ellison use power ethically?...
Pine Village needs some additional recreation fields. Construction will cost $225,000 and annual O&M expenses are $85,000. The city council estimates that the value of added youth leagues is about...
Condensed balance sheet and income statement data for Jernigan Corporation are presented here. Additional information: 1. The market price of Jernigans common stock was $7.00, $7.50, and $8.50 for...
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....
Selected worksheet data for Rosa Company are presented below. Instructions (a) Fill in the missing amounts. (b) Prepare the adjusting entries that weremade. Adjusted Trial Balance Account Titles...
Cassi Taxpayer (SSN 412-34-5670) who is single, has a home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the tax year 2014: Gross...
Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit...
Payroll Tax Entries Cedarville Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period,...
Identify ways in which the internationalization of business affects businesses in your community.
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...
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...
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...
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...
(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....
Presented below is selected information related to Garryowen Company at December 31, 2015. Garryowen reports financial information monthly. Accounts Payable .......... $ 3,000 Cash ...................
Suppose the price of a sweater is $15. Julias benefit from purchasing each additional sweater is given in the table below. Julia gets the most benefit from the first sweater and less benefit from...
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...
The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover of 6 times, total current assets of $810,000, and cash and marketable securities of $120,000. What were...
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...
Granger Products recorded the following transactions for the just-completed month. The company had no beginning inventories: a. $75,000 in raw materials was purchased for cash. b. $73,000 in raw...
Audiophonics Limited manufactures and sells high-quality and durable ear buds for use with personal electronics that are custom moulded to each customers ear. Cost data for the product follow:...
Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck...
Radon Homes current EPS is $6.50. It was $4.42 five years ago. The company pays out 40% of its earnings as dividends, and the stock sells for $36. a. Calculate the historical growth rate in earnings....
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...
Discuss ways a regional bank could use the Internet effectively to recruit loan officer professionals.
The accounting firm of Coopers & Andersen is conducting a benchmarking survey to assess the satisfaction level of its clients versus clients served by competing accounting firms. The clients are...
Assume a year has passed and XYZ has improved security by applying a number of controls. Using the information from Exercise 3 and the following table, calculate the post-control ARO and ALE for each...
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-...
Diane Bernick has opened Bernicks Consulting. Journalize the following transactions that occurred during January of the current year. Use the following journal pages: January 110, page 1, and January...
Tony Masasi started his own consulting firm, Masasi Company, on June 1, 2010. The trial balance at June 30 is shown below. In addition to those accounts listed on the trial balance, the chart 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 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...
(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,...
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...
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...
Review and justify the placement of the seven types of conflicts into the nine cells of Table 4-1 . Categories of Comflict Parties-at-Interest Project team Authority Interpersonal Goals Schedules...
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?