1.The results of a popular shoe company named Rocky Ltd is as follows:

Product A: Sales=2,50,000,

PV ratio=50%

Product B: Sales=4,00,000,

PV ratio=40%

Product C: Sales=6,00,000,

PV ratio=30%

Overheads-fixed at 5,02,200

Board of Directors wants a detailed statement of amount of loss and recommendation of sales in each of the products as well in total sales while maintaining same sales mix which will eliminate the loss.

2.Apex Ltd acquired 10 percent of Santa Corporation on January 1, 2017, for $186,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Apex purchased an additional 30 percent of Santa for $661,000 which resulted in significant influence over Santa. On that date, the fair value of Santa's common stock was $2,030,000 in total. Santa's January 1, 2018 book value equaled $1,880,000, although land was undervalued by $135,000.

Any additional excess fair value over Santa's book value was attributable to a trademark with an 8-year remaining life. During 2018, Santa's reported income of $345,000 and declared and paid dividends of $100,000.

Prepare the 2018 journal entries for Apex related to its investment in Santa.

3.Robert Inc. has 6.7 million shares of common stock outstanding. The current market price of the common stock is $76 per share rights-on. The company's net income this year is $23.50 million. A rights offering has been announced in which 670,000 new shares will be sold at $70.50 per share. The subscription price plus nine rights is needed to buy one of the new shares.

a.What are the earnings per share and price-earnings ratio before the new shares are sold via the rights offering?(Do not round intermediate calculations and round your answers to 2 decimal places.)

Earnings per share

Price-earnings ratio

b.What would the earnings per share be immediately after the rights offering? What would the price-earnings ratio be immediately after the rights offering? (Assume there is no change in the market value of the stock, except for the change when the stock begins trading ex-rights.)(Do not round intermediate calculations and round your answers to 2 decimal places.)

Earnings per share

Price-earnings ratio

4.Bravo Inc. reports the following beginning inventory and purchases for 2020:

Beginning inventory 400 @ $12 each= $4,800

Inventory purchased 600 @ $14 each=8,400

Cost of goods available 1,000 units= $13,200

Bravo Inc. sells 600 of these units in 2020.

Compute its cost of goods sold for 2020 and the ending inventory reported on its 2020 balance sheet under each of the following inventory costing methods:

FIFO

LIFO

Average cost Method

5.State and explain whether the following statements are valid or not valid:

A. Target costing ignores non-value added activities

B. Target costing is not applicable to a monopoly market

6.A company has a product named Crunch and it has a profit volume ratio of 28%.

Fixed operating costs directly attributable to product Kio during the 2nd quarter of theyear 2018-19 is 2,80,000.

Calculate:

Sales revenue required to achieve a quarterly profit of 70,000.