On the document attached, there are questions that I need to prepare before class. I really don't understand anything and I'm struggling a lot. I just want to know what I need to do and how I can answer those questions. I'm not sure what the procedure is on this website since it's the first time I use but if you end up answering the questions on the document, can you include an explanation please because I want to understand so that I can apply it on different cases and not just copy the work.

Thanks!

Case Studies Preparation As we discussed in class, for next week (November 29) you have to prepare the \"Merrimack\" and \"Chemalite\" case studies from the syllabus package. You have to be prepared to discuss in class the 2 documents and to answer to the following questions (counting for 5% of the final mark): Questions Case Study 1 (Merrimack Tractors ) 1. Prepare a pro-forma income statement for Merrimack Tractors and Mowers, Inc. (MTM) for 2008, assuming there are no changes in accounting policies, and the company sells 10,000 units per quarter, at a price of $2,000 per unit, with sales general and administration costs the same as in 2007. 2. How would that pro-forma change if the sales were 5,000 in the 1st quarter, 20,000 in the 2nd, 10,000 in the 3rd and 5,000 in the 4th quarter? 3. If MTM were to adopt FIFO as of Jan. 1st 2008, how would this affect the financial statements (Balance sheet, Income statement and Cash-flow statement)? Assume sales are 10,000 units per quarter. 4. Is it ethical to change accounting practices? When? What for? 5. How would you explain the change from LIFO to FIFO in the notes to the financial statements? How would you argue for the change? Questions Case Study 2 (Chemalite ) 1. Please make the journal and general ledger entries that correspond to the events that occurred in the first semester of 2003. Pay special attention to: Alexander's stock (given to him in exchange for his patent). Legal & other costs related with the incorporation of the company. 2. Is Mr. Larson's concern justified? 3. Please make the journal and general ledger entries that correspond to the events that occurred in the second semester of 2003. Pay special attention to: How to account for the prototype costs. Is it an asset? An expense? How to treat advertising. How to treat direct manufacturing labor and how to treat manufacturing related overhead. How should corporate salaries be treated? How shall the loan be shown? 4. Calculate the Cost of the Goods Sold in the year. 5. What shall be done with the patent? 6. Prepare the financial statements for the year, closing the books for 2003. (The financial statements for 2003 include the Balance Statement as of Dec. 31st 2003, the Income Statement for the year ending on Dec 31st 2003). Case Studies Preparation As we discussed in class, for next week (November 29) you have to prepare the \"Merrimack\" and \"Chemalite\" case studies from the syllabus package. You have to be prepared to discuss in class the 2 documents and to answer to the following questions (counting for 5% of the final mark): Questions Case Study 1 (Merrimack Tractors ) 1. Prepare a pro-forma income statement for Merrimack Tractors and Mowers, Inc. (MTM) for 2008, assuming there are no changes in accounting policies, and the company sells 10,000 units per quarter, at a price of $2,000 per unit, with sales general and administration costs the same as in 2007. 2. How would that pro-forma change if the sales were 5,000 in the 1st quarter, 20,000 in the 2nd, 10,000 in the 3rd and 5,000 in the 4th quarter? 3. If MTM were to adopt FIFO as of Jan. 1st 2008, how would this affect the financial statements (Balance sheet, Income statement and Cash-flow statement)? Assume sales are 10,000 units per quarter. 4. Is it ethical to change accounting practices? When? What for? 5. How would you explain the change from LIFO to FIFO in the notes to the financial statements? How would you argue for the change? Questions Case Study 2 (Chemalite ) 1. Please make the journal and general ledger entries that correspond to the events that occurred in the first semester of 2003. Pay special attention to: Alexander's stock (given to him in exchange for his patent). Legal & other costs related with the incorporation of the company. 2. Is Mr. Larson's concern justified? 3. Please make the journal and general ledger entries that correspond to the events that occurred in the second semester of 2003. Pay special attention to: How to account for the prototype costs. Is it an asset? An expense? How to treat advertising. How to treat direct manufacturing labor and how to treat manufacturing related overhead. How should corporate salaries be treated? How shall the loan be shown? 4. Calculate the Cost of the Goods Sold in the year. 5. What shall be done with the patent? 6. Prepare the financial statements for the year, closing the books for 2003. (The financial statements for 2003 include the Balance Statement as of Dec. 31st 2003, the Income Statement for the year ending on Dec 31st 2003)