Posts

Showing posts from April, 2013
Image
2. (TCO 6) Pacific Airlines has three service departments; ticketing, baggage handling, and aircraft maintenance. Costs of these departments are allocated to two revenue producing departments, domestic and international flights. Costs for the service departments are not separated into fixed and variable and the totals are as follows: Ticketing $4,000,000 Baggage handling $2,000,000 Aircraft maintenance $6,000,000 Air miles are as follows: Domestic 5,000,000 International 20,000,000 (a) Allocate the service department costs based on air miles. (b) Evaluate World Airlines use of air miles as a basis for allocation. Do you think the cause-and-effect relationship is strong? (c) Suggest alternative methods to allocate the service department costs. (TCO 10) Gina's Boutique makes custom jewelry. One item, the guru necklace, is a best seller and sales in units for the first quarter are as follows: January 100,000 units February 150,000 units March 180,000 units Desi
Image
Partner investments; journal entries. The LP partnership was formed on January 1, 19X7, by investments from Bill Levy and Marv Parcells. Levy contributed $30,000 cash and $80,000 of land. Parcells contributed cash of $50,000 and equipment with a value of $20,000. a. Prepare the journal entries needed to record the investments of Levy and Parcells. 2. Payroll accounting. Assume that the following tax rates and payroll information pertain to Brookhaven Publishing: • Social Security taxes: 6% on the first $55,000 earned • Medicare taxes: 1.5% on the first $130,000 earned • Federal income taxes withheld from wages: $7,500 • State income taxes: 5% of gross earnings • Insurance withholdings: 1% of gross earnings • State unemployment taxes: 5.4% on the first $7,000 earned • Federal unemployment taxes: 0.8% on the first $7,000 earned The company incurred a salary expense of $50,000 during February. All employees had earned less than $5,000 by month-end. a. Prepare the necessary
Image
A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 45% of sales. Indirect incremental costs are estimated at $95,000 a year. The project requires a new plant that will cost a total of $1,500,000, which will be a depreciated straight line over the next 5 years. The new line will also require an additional net investment in inventory and receivables in the amount of $200,000. Assume there is no need for additional investment in building the land for the project. The firm's marginal tax rate is 35%, and its cost of capital is 10%. To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at financial values. PASSWORD : SHIV
Image
1) The Arizona Bay Corporation sells on credit terms of net 25. Its accounts are, on average, 11 days past due. Required: If annual credit sales are $8 million, what is the company’s balance sheet amount in accounts receivable? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) Average accounts receivables ??? 2) Your neighbor goes to the post office once a month and picks up two checks, one for $11,000 and one for $6,000. The larger check takes 5 days to clear after it is deposited; the smaller one takes 7 days. Assume 30 days per month. Required: (a) What is the total float for the month? (Do not include the dollar sign ($).) Total float $ ??? (b) What is the average daily float? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) Average daily float $ ??? (c) What are the average daily receipts and weighted average delay? (Do not include the dollar sign ($). Roun

TopLiance Corporation sells home appliances. It has over 50 sales agents across multiple states

Image
TopLiance Corporation sells home appliances. It has over 50 sales agents across multiple states. The company has decided to implement an online sales program. The new Internet-based sales program is expected to increase the sales volume and enhance the profit margin. You are asked to head the project team, and you are expected to generate a 3 – 5-page project plan that includes the following: A Project Charter •project title •date of authorization •project manager's name •brief scope statement •planned approach for managing the project •assign tasks and responsibilities •sign-off section Project Timeline PASSWORD:- SHIV
Image
Question 1 of 20 5.0 Points When TV advertisements report that “2 out of 3 dentists surveyed indicated they would recommend Brand X toothpaste to their patients,” an informed consumer may question the conclusion because: A. the results were incorrectly computed. B. dentists were not really surveyed. C. the conclusion does not include the total number of dentists surveyed. D. the conclusion is not illustrated with a graph. Reset Selection Mark for Review What's This? Question 2 of 20 5.0 Points The main purpose of descriptive statistics is to: A. summarize data in a useful and informative manner. B. make inferences about a population. C. determine if the data adequately represents the population. D. gather or collect data. Reset Selection Mark for Review What's This? Question 3 of 20 5.0 Points A poll of 1,000 voters used to predict the outcome of a statewide election is an example of: A. descriptive statistics. B. continuous variable measuremen
Image
1) Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2010: April May June Credit sales $338,200 $352,440 $389,820 Credit purchases 130,830 156,195 178,450 Cash disbursements Wages, taxes, and expenses 35,380 42,910 44,770 Interest 10,150 10,150 10,150 Equipment purchases 73,870 80,990 0 The company predicts that 4 percent of its credit sales will never be collected, 33 percent of its sales will be collected in the month of the sale, and the remaining 63 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2010, credit sales were $186,900, and credit purchases were $138,840. Required: Using this information, complete the following cas
Image
(TCO 7) Elliot’s Escargots sells commercial and home snail extraction tools and serving pieces. Currently, the snail extraction line of products takes up approximately 50 percent of the company’s retail floor space. The CEO of Elliot’s wants to decide if the company should continue offering snail extraction tools or focus only on serving pieces. If the snail extraction tools are dropped, salaries and other direct fixed costs can be avoided and serving piece sales would increase by 13 percent. Allocated fixed costs are assigned based on relative sales. Snail Extraction Serving Tools Pieces Total Sales $1,200,000 $800,000 $2,000,000 Less Cost of goods sold 700,000 500,000 1,200,000 Contribution margin $500,000 $300,000 $800,000 Less direct fixed costs: Salaries 175,000 175,000 350,000 Other 60,000 60,000 120,000 Less allocated fixed costs: Rent 14,118 9,882 24,000 Insurance 3,529 2,471 6,000 Cleaning 4,117 2,883 7,000 Executive salary 76,470 53,530 130,000
Image
We are considering the introduction of a new product. Currently we are in the 34% tax bracket with a 15% discount rate. This project is expected to last five years and then, because this is somewhat of a fad project, it will be terminated. The following information describes the new project: Cost of new plant and equipment: $ 7,900,000 Shipping and installation costs: $ 100,000 Unit sales: Year Units Sold 1 70,000 2 120,000 3 140,000 4 80,000 5 60,000 Sales price per unit: $300/unit in years 1–4 and $260/unit in year 5. Variable cost per unit: $180/unit Annual fixed costs: $200,000 per year Working capital requirements: There will be an initial working capital requirement of $100,000 just to get production started. For each year, the total investment in net working capital will be equal to 10% of the dollar value of sales for that year. Thus, the investment in working capital will increase during years 1 through 3, then decrease in year 4. Finally,
Image
Fill in the table using the following information. Assets required for operation: $10,000 Firm A uses only equity financing Firm B uses 30% debt with a 6% interest rate and 70% equity Firm C uses 50% debt with a 10% interest rate and 50% equity Firm D uses 50% preferred stock financing with a dividend rate of 10% and 50% equity financing Earnings before interest and taxes: $1,000 A B C D A A AA B C D Debt $ $ $ $ Preferred stock Common stock Earnings before interest and taxes Interest expense Earnings before taxes Taxes (40% of earnings) Preferred stock dividends Net earnings Return on common stock What happens to the return on the stockholders’ investment as the amount of debt increases? Why is the rate of interest greater in case C? Why is the return lower when the firm uses preferred stock instead of debt? Why does the use of preferred stock involve less risk for the firm than a comparable use of debt financing? AFTER PAYMENT ENTER PAS
Image
(Predetermined Overhead Rate) For 2013, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour. The firm’s 2013 expected annual capacity is $78,000 direct labor hours, to be incurred evenly each month. Making one unit of the company product requires 1.5 direct labor hours. a. Determine the total overhead to be applied per unit of product in 2013. b. Prepare journal entries to record the application of overhead to Work in process inventory and the incurrence of $128,550 of actual overhead in January 2013, when 6,390 direct labor hours were worked. c. Given the actual direct labor hours in (b), how many units would you have expected to be produced in January. (Under applied or over applied overhead) At the end of 2013, Jackson Tank Company’s account showed a $66,000 credit balance in manufacturing overhead control. In addition, the company had the following account balances: Work in process inventory $384,000 Finished Goods Inventory $96,000 C
Image
1. Determine the cash inflows and outflows for each year. 2. Evaluate the capital project by calculating the following metrics: a. net present value (NPV) b. internal rate of return (IRR) c. modified internal rate of return (MIRR) d. payback period e.discounted payback period 3.Indicate whether the project is acceptable, assuming Jiranna has a corporate policy of not accepting projects that take more than 3.5 years to pay for themselves, and assuming an 11% cost of capital. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Nurse Triage Salaries $523,800 $549,990 $577,490 $606,364 $636,682 $668,516 Forecasted ER Cost Reductions $400,000 $800,000 $848,000 $900,577 $955,512 $1,013,798 New IT Specialist's Salary $150,000 $154,500 $159,135 $163,909 $168,826 $173,891 Costs of Facility Renovations $30,000 $- $- $- $- $- Necessary Capital Equipment Purchases $117,000 $3,510 $3,510 $3,510 $3,510 $3,510 Net Cash Flow: Present Values of Net Cash Flows: Net Present Value: IRR: MIRR: Payback Period (#
Image
   1) A company can take several steps to improve the quality of its marketing intelligence. If the company purchases competitive products for study, attends open houses and trade shows, and reads competitors’ published reports and stockholder information, the company is using ________ to improve the quality of its marketing intelligence.   A. customer feedback systems B. external networks C. advisory panels D. intermediaries E. sales force surrogates   2) Total customer satisfaction is the general feeling of pleasure or disappointment that results from comparing perceived performance to expectations. To achieve total customer satisfaction, organizations need to_____________. A. Lower prices B. Manage customer experiences C. Lower expectations D. Spend more money