practice exam questions! correct answers get thumbs ! help is really appreicated. many thanks in advance

w Tableau DA 9-3: Mini-Case, Analyzing warranty liabilities LO P4 We are hired as consultants to assist Arctica Co. In accounting for its warranty expenses. Arctica offers a one-year warranty covering parts on each snowmobile it sells. The following Tableau Dashboard is provided to assist us. Estimated Warranty Expense vs. Actual Warranty Claims $25,000 $20,000 Actual Warranty Claims Estimated Warranty Expense $15,000 $10,000 $5,000 so 4 Years Ago 3 Years Ago 2 Years Ago 1 Year Ago Current Year Sales by Model Estimated Warranty Expense Percentage by Model 8% 8 4 Years Ago 3 Years Ago 2 Years Ago 1 Year Ago Estimated Warranty Expense Percentage by Model Current Year Sales by Model 8% Book 6% Puma rint 5% Jag ences 496 396 296 Lynx 196 096 Puma Jag Lynx tableau 1. Looking at past years, does it appear that Arctica has usually underestimated or overestimated its warranty liabilities? 2. How would we suggest Arctica change its estimates of warranty liabilities in future periods? 3. Management tells us that Arctica plans to keep estimated warranty expense percentages to a minimum next year. Why might management want to keep these percentages low? 4. Alternatively, assume management informs us that Arctica had a great year and has very high net income. However, management is now concerned about high taxes, which are calculated as a percentage of net income. What might management try to do to lower Arctica's taxes? Lynx 1% 096 Jag Lynx Puma 4 tableau SPE 1. Looking at past years, does it appear that Arctica has usually underestimated or overestimated its warranty liabilities? 2. How would we suggest Arctica change its estimates of warranty liabilities in future periods? 3. Management tells us that Arctica plans to keep estimated warranty expense percentages to a minimum next year. Why might management want to keep these percentages low? 4. Alternatively, assume management Informs us that Arctica had a great year and has very high net income. However, management is now concerned about high taxes, which are calculated as a percentage of net income. What might management try to do to lower Arctica's taxes? 1. 2 Looking at past years, does it appear that Arctica has usually underestimated or overestimated its warranty abilities? How would we suggest Arctica change its estimates warranty liabilities in future periods? Why might management want to keep these percentages low? What might management try to do to lower Arctica's taxes? 3. 4. Next > 8 of 9 $ million Net income Income taxes Interest expense Current yar $48351 15,738 2.323 Apple One Year Two Year Prior Prior $45,682 $53,394 15,685 19,121 1,456 733 Current Year 12,662 14.531 109 Google One Year Two Years Prior 19,478 16,348 4,672 3,303 124 104 Required: 1. Compute times interest earned for the three years' data shown for each company. 2. In the current year, and using times interest earned, which company appears better able to pay interest obligations? 3. In the current year, and using times interest earned, is the company in a good or bad position to pay interest obligations for (6) Apple, and (b) Google? Assume an industry average of 10. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 In the current year, and using times interest earned, which company appears better able to pay interest obligations? Which company appears better able to pay interest obligations? Next 9 of 9 2:32 1,456 1723 1 109 4,672 124 3,303 104 Required: 1. Compute times interest earned for the three years' data shown for each company. 2. In the current year, and using times interest earned, which company appears better able to pay interest obligations? 3. In the current year, and using times interest earned, is the company in a good or bad position to pay interest obligations for (4) Apple, and (b) Google? Assume an industry average of 10. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 In the current year, and using times interest earned, is the company in a good or bad position to pay Interest obligations for (a) Apple, and (b) Google? Assume an industry average of 10. Is the company in a good or bad position to pay Interest obligations: a. Apple b Google 8 of 9 $ million Net income Income taxes Interest expense Current yar $48351 15,738 2.323 Apple One Year Two Year Prior Prior $45,682 $53,394 15,685 19,121 1,456 733 Current Year 12,662 14.531 109 Google One Year Two Years Prior 19,478 16,348 4,672 3,303 124 104 Required: 1. Compute times interest earned for the three years' data shown for each company. 2. In the current year, and using times interest earned, which company appears better able to pay interest obligations? 3. In the current year, and using times interest earned, is the company in a good or bad position to pay interest obligations for (6) Apple, and (b) Google? Assume an industry average of 10. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 In the current year, and using times interest earned, which company appears better able to pay interest obligations? Which company appears better able to pay interest obligations? Next 9 of 9 2:32 1,456 1723 1 109 4,672 124 3,303 104 Required: 1. Compute times interest earned for the three years' data shown for each company. 2. In the current year, and using times interest earned, which company appears better able to pay interest obligations? 3. In the current year, and using times interest earned, is the company in a good or bad position to pay interest obligations for (4) Apple, and (b) Google? Assume an industry average of 10. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 In the current year, and using times interest earned, is the company in a good or bad position to pay Interest obligations for (a) Apple, and (b) Google? Assume an industry average of 10. Is the company in a good or bad position to pay Interest obligations: a. Apple b Google