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42. Transactions On June 1 of the current year, Chad Wilson established abusiness to manage rental prope
Transactions On June 1 of the current year, Chad Wilson established abusiness to manage rental property. He completed the followingtransactions during June: Opened a business bank account with a deposit of $30,000 frompersonal funds. Purchased office supplies on account, $1,800. Received cash from fees earned for managing rental property,$10,000. Paid rent on office and equipment for the month, $4,500. Paid creditors on account, $1,250. Billed customers for fees earned for managing rental property,$16,800. Paid automobile expenses (including rental charges) for themonth, $750, and miscellaneous expenses, $980. Paid office salaries, $4,000. Determined that the cost of supplies on hand was $680;therefore, the cost of supplies used was $1,120. Withdrew cash for personal use, $7,500. Required: 1. Indicate the effect of each transaction andthe balances after each transaction:
For those boxes in which no entry is required, leave the boxblank.
For those boxes in which you must enter subtractive or negativenumbers use a minus sign. (Example: -300) 2. Owner’s equity is the right of owners to theassets of the business. These rights are increasedby owner’s investments and revenues and decreasedby owner’s withdrawals and expenses. 3. Determine the net income for June.
$ 4. June’s transactions (a-j) increased ordecreased Chad Wilson’s capital to?
Increased to $ . . .
43. Excerpts from Stealth Company's December 31, 2018 and 2017, financial statements are presented be...
Excerpts from Stealth Company's December 31, 2018 and 2017, financial statements are presented below:
2018 | 2017 | |
Accounts receivable | $40,000 | $36,000 |
Inventory | 28,000 | 35,000 |
Net sales | 190,000 | 186,000 |
Cost of goods sold | 114,000 | 108,000 |
Total assets | 425,000 | 405,000 |
Total stockholders’ equity | 240,000 | 225,000 |
Net income | 32,500 | 28,000 |
Stealth Company's 2018 average days in inventory is (round intermediate calculations to two decimal places and final answer to one decimal place):
A) 100.8 days.
B) 89.7 days.
C) 92.2 days.
D) 60.5 days.
44. The following accounts and balances were drawn from the records of Barker Company at December 31,...
The following accounts and balances were drawn from the records of Barker Company at December 31, 2016: Supplies $ 650 Beginning retained earnings $ 18,000 Cash flow from investing act. (7,500) Cash flow from financing act. 5,100 Prepaid insurance 2,200 Rent expense 2,300 Service revenue 78,000 Dividends 5,000 Other operating expenses 43,000 Cash 11,200 Supplies expense 200 Accounts receivable 18,000 Insurance expense 1,100 Prepaid rent 4,900 Beginning common stock 1,000 Unearned revenue 7,500 Cash flow from operating act. 7,400 Land 39,000 Common stock issued 5,200 Accounts payable 17,850 Required a. Use the accounts and balances from Barker Company to construct an income statement. b. Use the accounts and balances from Barker Company to construct statement of changes in stockholders' equity. c. Use the accounts and balances from Barker Comapny to construct balance sheet. d. Use the accounts and balances from Barker Comapny to construct statement of cash flows (show only totals for each activity on the statement of cash flows . (Amounts to be deducted and cash outflows should be indicated with a minus sign.)
45. Micrium, a computer chip manufacturing company, sells its products to its distributors for onward...
Micrium, a computer chip manufacturing company, sells its products to its distributors for onward sales to the ultimate customers. Due to frequent fluctuations in the market prices for these goods, Micrium has a “price protection” clause in the distributor agreement that entitles it to raise additional billings in case of upward price movement. Another clause in the distributor’s agreement is that Micrium can at any time reduce its inventory by buying back goods at the cost at which it sold the goods to the distributor. Distributors pay for the goods within 60 days from the sale of goods to them. When should Micrium recognize revenue on sale of goods to the distributors?
(a) When the goods are sold to the distributors.
(b) When the distributors pay to Micrium the cost of the goods (i.e., after 60 days of the sale of goods to the distributors).
(c) When goods are sold to the distributor provided estimated additional revenue is also booked under the “protection clause” based on past experience.
(d) When the distributor sells goods to the ultimate customers and there is no uncertainty with respect to the “price protection” clause or the buyback of goods.
46. PROJECT AND RISK ANALYSIS As a financial analyst, you must evaluate a proposed project to produce...
PROJECT AND RISK ANALYSIS As a financial analyst, you must evaluate a proposed project to produce printer cartridges. The equipment would cost $55,000, plus $10,000 for installation. Annual sales would be 4,000 units at a price of $50 per cartridge, and the project’s life would be 3 years. Current assets would increase by $5,000 and payables by $3,000. At the end of 3 years, the equipment could be sold for $10,000. Depreciation would be based on the MACRS 3-year class; so the applicable depreciation rates would be 33%, 45%, 15%, and 7%. Variable costs (VC) would be 70% of sales revenues, fixed costs excluding depreciation would be $30,000 per year, the marginal tax rate is 40%, and the corporate WACC is 11%.
a. What is the required investment, that is, the Year 0 project cash flow?
b. What are the annual depreciation charges?
c. What are the project’s annual net cash flows?
d. If the project is of average risk, what is its NPV? Should it be accepted?
e. Suppose management is uncertain about the exact unit sales. What would the project’s
NPV be if unit sales turned out to be 20% below forecast but other inputs were as forecasted? Would this change the decision? Explain.
f. The CFO asks you to do a scenario analysis using these inputs:
| Probability | Unit Sales | VC% |
Best case | 25.00% | 4,800 | 65% |
Base case | 50 | 4,000 | 70 |
Worst case | 25 | 3,200 | 75 |
Other variables are unchanged. What are the expected NPV, its standard deviation, and the coefficient of variation?
g. The firm’s project CVs generally range from 1.0 to 1.5. A 3% risk premium is added to the WACC if the initial CV exceeds 1.5, and the WACC is reduced by 0.5% if the CV is 0.75 or less. Then a revised NPV is calculated. What WACC should be used for this project? What are the revised values for the expected NPV, standard deviation, and coefficient of variation? Would you recommend that the project be accepted? Why or why not?
47. Champion Contractors completed the following transactions and events involving the purchase and o...
Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business. 2014 Jan. 1 Paid $250,000 cash plus $10,000 in sales tax and $1,600 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $25,000 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $4,000 to enclose the cab and install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,200. Dec. 31 Recorded annual straight-line depreciation on the loader. 2015 Jan. 1 Paid $4,100 to overhaul the loader’s engine, which increased the loader’s estimated useful life by two years. Feb. 17 Paid $1,025 to repair the loader after the operator backed it into a tree. Dec. 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events.
48. 108.Benson Inc.'s accounting records[u1] [u2] reflect the following inventories: Dec. 31, 2016Dec. 31,...
108.Benson Inc.'s accounting records reflect the following inventories:
Dec. 31, 2016Dec. 31, 2017
Raw materials inventory$ 80,000$ 64,000
Work in process inventory104,000116,000
Finished goods inventory100,00092,000
During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000.
How much raw materials were transferred to production during 2017 for Benson?
a.$1,386,000
b.$1,466,000
c.$1,450,000
d.$1,434,000
109.Benson Inc.'s accounting records reflect the following inventories:
Dec. 31, 2016Dec. 31, 2017
Raw materials inventory$ 80,000$ 64,000
Work in process inventory104,000116,000
Finished goods inventory100,00092,000
During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000.
How much is total manufacturing costs incurred during 2017 for Benson?
a.$1,864,000
b.$1,876,000
c.$1,860,000
d.$1,872,000
110.Benson Inc.'s accounting records reflect the following inventories:
Dec. 31, 2016Dec. 31, 2017
Raw materials inventory$ 80,000$ 64,000
Work in process inventory104,000116,000
Finished goods inventory100,00092,000
During 2017, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000.
Assume Benson’s cost of goods manufactured for 2017 amounted to $1,660,000. How much would it report as cost of goods sold for the year?
a.$1,668,000
b.$1,568,000
c.$1,760,000
d.$1,652,000
111.Walker Company reported the following year-end information:
Beginning work in process inventory $ 46,000
Beginning raw materials inventory24,000
Ending work in process inventory50,000
Ending raw materials inventory20,000
Raw materials purchased830,000
Direct labor440,000
Manufacturing overhead100,000
How much is Walker’s cost of goods manufactured for the year?
a.$834,000
b.$1,374,000
c.$1,370,000
d.$1,378,000
112.Ogleby Inc.'s accounting records reflect the following inventories:
Dec. 31, 2016Dec. 31, 2017
Raw materials inventory$120,000$ 96,000
Work in process inventory156,000174,000
Finished goods inventory150,000138,000
During 2017, Ogleby purchased $980,000 of raw materials, incurred direct labor costs of $175,000, and incurred manufacturing overhead totaling $224,000.
How much is total manufacturing costs incurred during 2017 for Ogleby?
a.$1,385,000
b.$1,403,000
c.$1,379,000
d.$1,415,000
113.Ogleby Inc.'s accounting records reflect the following inventories:
Dec. 31, 2016Dec. 31, 2017
Raw materials inventory$120,000$ 96,000
Work in process inventory156,000174,000
Finished goods inventory150,000138,000
During 2017, Ogleby purchased $980,000 of raw materials, incurred direct labor costs of $175,000, and incurred manufacturing overhead totaling $224,000.
How much would Ogleby Manufacturing report as cost of goods manufactured for 2017?
a.$1,229,000
b.$1,397,000
c.$1,391,000
d.$1,385,000
114.Wasson Company reported the following year-end information:
Beginning work in process inventory $ 35,000
Beginning raw materials inventory18,000
Ending work in process inventory38,000
Ending raw materials inventory15,000
Raw materials purchased560,000
Direct labor210,000
Manufacturing overhead120,000
How much is Wasson’s total cost of work in process for the year?
a.$925,000
b.$893,000
c.$890,000
d.$928,000
115.Edmiston Company reported the following year-end information: beginning work in process inventory, $80,000; cost of goods manufactured, $750,000; beginning finished goods inventory, $50,000; ending work in process inventory, $70,000; and ending finished goods inventory, $40,000. How much is Edmiston’s cost of goods sold for the year?
a.$750,000
b.$760,000
c.$740,000
d.$770,000
116.Using the following information, compute the direct materials used.
Raw materials inventory, January 1$ 20,000
Raw materials inventory, December 3140,000
Work in process, January 118,000
Work in process, December 3112,000
Finished goods, January 140,000
Finished goods, December 3132,000
Raw materials purchases1,700,000
Direct labor760,000
Factory utilities150,000
Indirect labor50,000
Factory depreciation400,000
Operating expenses420,000
a.$1,760,000.
b.$1,720,000.
c.$1,700,000.
d.$1,680,000.
117.Assuming that the direct materials used are $1,700,000, compute the total manufacturing costs using the following information.
Raw materials inventory, January 1$ 20,000
Raw materials inventory, December 3140,000
Work in process, January 118,000
Work in process, December 3112,000
Finished goods, January 140,000
Finished goods, December 3132,000
Raw materials purchases1,700,000
Direct labor760,000
Factory utilities150,000
Indirect labor50,000
Factory depreciation400,000
Operating expenses420,000
a.$3,060,000.
b.$3,066,000.
c.$2,860,000.
d.$3,480,000.
49. Which of the following is not one of the three basic activities of a manager?
Which of the following is not one of the three basic activities of a manager?
A) Planning
B) Controlling
C) Directing and motivating
D) Compiling management accounting reports
50. Hi, The question is called FNSTPB401 – Complete business activity and instalment activity...
Hi, The assignment is called FNSTPB401 – Complete business activity and instalment activity statements.I have attached the Assignment let me known if you need the learning content for each topic
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FNSTPB401 Complete business activity and instalment activity statements ASSESSMENT GUIDE
ASSESSMENT INFORMATION for students Throughout your training we are committed to your learning by providing a training and assessment framework that ensures the knowledge gained through training is translated into practical on the job improvements. You are going to be assessed for: Your skills and knowledge using written and observation activities that apply to the workplace. Your ability to apply your learning. Your ability to recognise common principles and actively use these on the job. All your assessment and training is provided as a positive learning tool. Your assessor will guide your learning and provide feedback on your responses to the assessment materials until you have been deemed competent in this unit. HOW YOU WILL BE ASSESSED The process we follow is known as competency-based assessment. This means that evidence of your current skills and knowledge will be measured against national standards of best practice, not against the learning you have undertaken either recently or in the past. Some of the assessment will be concerned with how you apply your skills and knowledge in the workplace, and some in the training room as required by each unit. The assessment tasks have been designed to enable you to demonstrate the required skills and knowledge and produce the critical evidence to successfully demonstrate competency at the required standard. Your assessor will ensure that you are ready for assessment and will explain the assessment process. Your assessment tasks will outline the evidence to be collected and how it will be collected, for example; a written activity, case study, or demonstration and observation. The assessor will also have determined if you have any special needs to be considered during assessment. Changes can be made to the way assessment is undertaken to account for special needs and this is called making Reasonable Adjustment.
What if I...