Accounting

Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. Calculate payments to suppliers assuming a 90-day payables period (Round your answers to 2 decimal places, e.g., 32.16.) Calculate payments to suppliers assuming a 60-day payables period (Round your answers to 2 decimal places, e.g., 32.16.)

Business, Accounting / By

EXPERT ANSWER Answer a) If payment is made immediatiely Q1 Q2 Q3 Q4 Payment of Accounts 273.00 261.00 291.00 298.80 Working Working Q1 Q2 Q3 Q4 Projected sale for Next Quarter [a] 910 870 970 996 Percentage of Purchase [b] 30% 30% 30% 30% Purchase [c = a*b] 273.00 261.00 291.00 298.80 Payment of Accounts …

Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. Calculate payments to suppliers assuming a 90-day payables period (Round your answers to 2 decimal places, e.g., 32.16.) Calculate payments to suppliers assuming a 60-day payables period (Round your answers to 2 decimal places, e.g., 32.16.) Read More »

Rustic Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Middleton Home and Garden Expo. The exhibit will cost the company $15,000 for space. At the show, Rustic Interiors will present a slide show on a laptop, pass out brochures that were printed previously (the company printed more than needed), and show its portfolio of previous jobs.

Business, Accounting / By

Rustic Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Middleton Home and Garden Expo. The exhibit will cost the company $15,000 for space. At the show, Rustic Interiors …

Rustic Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Middleton Home and Garden Expo. The exhibit will cost the company $15,000 for space. At the show, Rustic Interiors will present a slide show on a laptop, pass out brochures that were printed previously (the company printed more than needed), and show its portfolio of previous jobs. Read More »

The standard cost of Product B manufactured by Pharrell Company includes three units of direct materials at $5.00 per unit. During June, 29,000 units of direct materials are purchased at a cost of $4.70 per unit, and 29,000 units of direct materials are used to produce 9, 400 units of Product B. Instructions (a) Compute the total materials variance and tin-;>> and quantity variances. (b) Repeat (a), assuming the purchase price is $5.15 and the quantity purchased and used is 28,000 units.

Business, Accounting / By

EXPERT ANSWER

Gonzales, CPA, is the auditor for a manufacturing company with a balance sheet that includes the entry “Property, plant, and equipment.” Gonzales has been asked by the company’s management if audit adjustments or reclassifications are required for the following material items that have been included in or excluded from “Property, plant, and equipment”:

Business, Accounting / By

ACCOUNTING MAJOR – AUDIT CASE (AUDITING THE FINANCING/INVESTING PROCESS : VARIOUS ASSET ACCOUNTS Gonzales, CPA, is the auditor for a manufacturing company with a balance sheet that includes the entry “Property, plant, and equipment.” Gonzales has been asked by the company’s management if audit adjustments or reclassifications are required for the following material items that …

Gonzales, CPA, is the auditor for a manufacturing company with a balance sheet that includes the entry “Property, plant, and equipment.” Gonzales has been asked by the company’s management if audit adjustments or reclassifications are required for the following material items that have been included in or excluded from “Property, plant, and equipment”: Read More »

Question 3: The following trial balance of The Shire Golf Club was extracted from the books as on31 December 20X3: DESCRIPTION DEBITE CREDITE Clubhouse 142000 Equipment 18600 Profits from raffles 6508 Subscriptions received 183400 Wages of bar staff 29200 Bar stock 1 january 2003 9400 Bar purchases and sales 41300 84600 Greenkeepers wages 21500 Golf professionals salary 37000 General expenses Cash at bank Accumulated fund at 1st January 2003 29326 303834 303834 910 3924 Notes: a) Bar purchases and sales were on cash basis. Bar stocks at 31 december 2003 were valued at 6410. b) Subscriptions paid in advance by members at 31 december 2003 amounted at 1870. c) Provided for depreciation 2400. Required: 1. Draw up the bar trading accounting for the year ended 31 december 2003. 2. Draw up the income and expenditure account for the year ended 31 december 2003 and a balance sheet as at 31 December 2003

Business, Accounting / By

EXPERT ANSWER

BQC’s marketing department estimates sales of 20,000 units annually if units sell for a price of $2000 each, therefore annual sales are estimated at $40 million.Additional manufacturing capacity is needed which BQC can acquire by purchasing an existing building at a cost of $12 million. The building will be bought and paid for on December 31, 2020.

Business, Accounting / By

BQC’s marketing department estimates sales of 20,000 units annually if units sell for a price of $2000 each, therefore annual sales are estimated at $40 million.Additional manufacturing capacity is needed which BQC can acquire by purchasing an existing building at a cost of $12 million. The building will be bought and paid for on December …

BQC’s marketing department estimates sales of 20,000 units annually if units sell for a price of $2000 each, therefore annual sales are estimated at $40 million.Additional manufacturing capacity is needed which BQC can acquire by purchasing an existing building at a cost of $12 million. The building will be bought and paid for on December 31, 2020. Read More »

An asset costs $825,000 and will be depreciated in a straight-line manner over its three-year life. It will have no salvage value. The corporate tax rate is 22 percent and the appropriate interest rate is 7 percent.

Business, Accounting / By

An asset costs $825,000 and will be depreciated in a straight-line manner over its three-year life. It will have no salvage value. The corporate tax rate is 22 percent and the appropriate interest rate is 7 percent. a. What would the lease payment have to be to make both the lessor and lessee indifferent about …

An asset costs $825,000 and will be depreciated in a straight-line manner over its three-year life. It will have no salvage value. The corporate tax rate is 22 percent and the appropriate interest rate is 7 percent. Read More »

Golden Gate Windsurfing Inc. is considering a project to expand its current operation. Given the following information and assuming straight-line depreciation to zero:What is the net present value of this project?Should Golden Gate Windsurfing Inc. accept the project and why?

Business, Accounting / By

Golden Gate Windsurfing Inc. is considering a project to expand its current operation. Given the following information and assuming straight-line depreciation to zero:What is the net present value of this project?Should Golden Gate Windsurfing Inc. accept the project and why? EXPERT ANSWER

led cost that is incre e of a fixed cost that is not incremen EXERCISE 7-2. ILO 1] Jordan Walken owns an Washington. Her accountant has prep below. (Jordan’s two lines are music devices the accountant allocated all common assistants, utilities, and other common costs based on relative sales (rounded eason: “Each product line needs to cover its share of common costs d operates an electronics store in Seattle duct line income statement that is reproduced and accessories.) In preparing the income statement s0) nethod (27o) ared a pro costs, including rent, Jordan’s salary and the salary of her two In light of this report, Jordan is considering eliminating accessories and concentrating solely on the sale of music devices (although, she does not expect an increase in music device sales) only Music Devices Accessories lo Total Sales $970,000 705,000 265,000 43,000 $150,000 $1,120,000 825,000 295,000 Cost of merchandise Gross margin Rent Salaries Utilities 30,000 50,000 32,000 7,000 6,000 293,000 $ 2,000 6,000 1,000 41,000 11,000) 252,000 Total $13,000 Income before taxes Analyze the effect on profit of dropping accessories. Then write a paragraph explaining the role of common costs in your analysis and how allocation of common costs can lead to the cost allocation death spiral. REQUIRED

Business, Accounting / By

EXPERT ANSWER Incremental Revenue -150000 Incremental savings: 120000 Incremental decrease in profit if the ‘accessories’ product line is dropped -30000 New profit = Original operating income +/- Change in operating income = New profit(loss) = 2000 – 30000 -28000 Dropping the accessories product line will result in a drop in operating income for the entire …

led cost that is incre e of a fixed cost that is not incremen EXERCISE 7-2. ILO 1] Jordan Walken owns an Washington. Her accountant has prep below. (Jordan’s two lines are music devices the accountant allocated all common assistants, utilities, and other common costs based on relative sales (rounded eason: “Each product line needs to cover its share of common costs d operates an electronics store in Seattle duct line income statement that is reproduced and accessories.) In preparing the income statement s0) nethod (27o) ared a pro costs, including rent, Jordan’s salary and the salary of her two In light of this report, Jordan is considering eliminating accessories and concentrating solely on the sale of music devices (although, she does not expect an increase in music device sales) only Music Devices Accessories lo Total Sales $970,000 705,000 265,000 43,000 $150,000 $1,120,000 825,000 295,000 Cost of merchandise Gross margin Rent Salaries Utilities 30,000 50,000 32,000 7,000 6,000 293,000 $ 2,000 6,000 1,000 41,000 11,000) 252,000 Total $13,000 Income before taxes Analyze the effect on profit of dropping accessories. Then write a paragraph explaining the role of common costs in your analysis and how allocation of common costs can lead to the cost allocation death spiral. REQUIRED Read More »

Pegasus Telecommunications Ltd (PTL) is considering rolling out a new cable Internet service, PTL is a taxable publicly listed corporation operating in Australia. PTL’s management is in the process of analyzing the project using the NPV method, and as a junior analyst you have been asked to gather the relevant information. For each of the following items explain briefly (no more than 1 sentence) why that item is or is not relevant to the NPV computation

Business, Accounting / By

Pegasus Telecommunications Ltd (PTL) is considering rolling out a new cable Internet service, PTL is a taxable publicly listed corporation operating in Australia. PTL’s management is in the process of analyzing the project using the NPV method, and as a junior analyst you have been asked to gather the relevant information. For each of the …

Pegasus Telecommunications Ltd (PTL) is considering rolling out a new cable Internet service, PTL is a taxable publicly listed corporation operating in Australia. PTL’s management is in the process of analyzing the project using the NPV method, and as a junior analyst you have been asked to gather the relevant information. For each of the following items explain briefly (no more than 1 sentence) why that item is or is not relevant to the NPV computation Read More »