Financial Analysis: Unlocking Insights for Academic

Published: 11 months ago

Financial Analysis: Unlocking Insights for Academic

1. Payroll practitioners should be familiar with the different types of non-statutory deductions....

Payroll practitioners should be familiar with the different types of non-statutory deductions. List the four types of non-statutory deductions discussed in the material and give two examples for each. -150-200 words

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Chapter Non-Statutory Deductions 5 Learning Objectives: Upon completion of this chapter, you should be able to: 1. define and prioritize the five categories of deductions: ? statutory ? legal ? union ? company-compulsory ? voluntary 2. describe the payroll compliance requirements of the following deductions: ? statutory ? legal ? union ? company-compulsory ? voluntary 3. calculate net pay Communication Objective: Upon completion of this chapter, you should be able to write a memo to confidentially advise an employee of the requirement to garnish their wages. © The Canadian Payroll Association – Payroll Fundamentals 1 5-1 Vs 11.0Chapter 5 Non-Statutory Deductions Chapter Contents Introduction ........................................................................................................................ 5-3  Types of Deductions .......................................................................................................... 5-3  Legal Deductions ........................................................................................................... 5-4  Union Deductions ........................................................................................................ 5-12  Company-Compulsory Deductions .............................................................................. 5-13  Voluntary Deductions .................................................................................................. 5-19  Content Review ............................................................................................................ 5-22  Review Questions ........................................................................................................ 5-24  Net Pay Calculation Examples ......................................................................................... 5-29  Review Question...

2. Jorgansen Lighting, Inc., manufactures heavy-duty street

Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data:



The company’s fixed manufacturing overhead per unit was constant at $560 for all three years.

Required:

1. Determine each year? s absorption costing net operating income. Present your answer in the form of a reconciliation report as shown in Exhibit 7—4.

2. In Year 4, the company’s variable costing net operating income was $984,400 and its absorption costing net operating income was $1,012,400. Did inventories increase or decrease during Year 4? How much fixed manufacturing overhead cost was deferred or released from inventory during Year4?

3. The form listing the titles and balances of the accounts in the ledger on a given date is the

The form listing the titles and balances of the accounts in the ledger on a given date is the:

A. income statement.

B. balance sheet.

C. statement of owner’s equity.

D. trial balance.

4. 1. State any three factors that indicate the continued growth in data warehousing and business...

1. State any three factors that indicate the continued growth in data warehousing and business intelligence. Can you think of some examples?

2. Why do data warehouses continue to grow in size, storing huge amounts of data? Give any three reasons.

5. Mr A Roy gives the following information relating to his income and expenditures for the year ended.

Mr A Roy gives the following information relating to his income and expenditures for the year ended 31.12.2014 : ~

From the following particulars, calculate the ‘Net Income’ of Sri Tapas Roy, an eminent Chartered Accountant for the year

6. A bakery producing cakes, biscuits and breads should be treated as 1.Joint product

A bakery producing cakes, biscuits and breads should be treated as

1.Joint product

2.Main product

3.By-product

4.Co-product

7. At the beginning of 2012, Mazzaro Company acquired equipment costing $120,000. It was estimated that...

At the beginning of 2012, Mazzaro Company acquired equipment costing $120,000. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $12,000 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year.

During 2014 (the third year of the equipment"s life), the company"s engineers reconsidered their expectations, and estimated that the equipment"s useful life would probably be 7 years (in total) instead of 6 years. The estimated salvage value was not changed at that time. However, during 2017 the estimated salvage value was reduced to $5,000.

Instructions

Indicate how much depreciation expense should be recorded each year for this equipment, by completing the following table.

8. Clooney Corp. establishes a petty cash fund for $200 and issues a credit card to its office manag...

Clooney Corp. establishes a petty cash fund for $200 and issues a credit card to its office manager. By the end of the month, employees made one expenditure from the petty cash fund (entertainment, $25) and three expenditures with the credit card (postage, $47; delivery, $72; supplies expense, $37).

Record all employee expenditures, and record the entry to replenish the petty cash fund. The credit card balance will be paid later.

9. Which of the following is not a perspective of the Balanced Scorecard? a. Learning and growth..

Which of the following is not a perspective of the Balanced Scorecard?

a. Learning and growth (infrastructure)

b. Internal business process

c. Customer

d. Nonfinancial

e. All of these are perspectives of the Balanced

Scorecard.

The number of units of output that can be produced in a given period of time is called

a. velocity.

b. cycle time.

c. manufacturing cycle efficiency.

d. theoretical cycle time.

e. theoretical MCE.

10. importance of scheme of work in teaching

importance of scheme of work in teaching

11. White Company has two departments, Cutting and Finishing. The company uses a job-order costing syste

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutt 6,000 hing 30,000 5,000 $ 366,000 Fi Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 48,000 $ 264,000 $ 2.00 4.00 Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Finishing 20 Direct labor-hours Direct materials $500 $108 $310 $ 360 Direct labor cost Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. . Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide redetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given below. Required 2 Required 3 Required 1 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. (Round intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total manufacturing cost $ C Required 1 Required 3

12. White Company has two departments, Cutting and Finishing. The company uses a job-order costing...

13. Which of the following statements would least likely appear in an auditor’s engagement letter?

Which of the following statements would least likely appear in an auditor’s engagement letter?

a. Fees for our services are based on our regular per diem rates, plus travel and other out-of-pocket expenses.

b. During the course of our audit we may observe opportunities for economy in, or improved controls over, your operations.

c. Our engagement is subject to the risk that material misstatements or fraud, if they exist, will not be detected.

d. After performing our preliminary analytical procedures we will discuss with you the other procedures we consider necessary to complete the engagement.

14. Which ONE of the following is the main problem with using non-probability sampling techniques? a)...

Which ONE of the following is the main problem with using non-probability sampling techniques?

a)The expense.b)The results are never representative.c)Human judgement error.d)Informants can refuse to participate.

15. 51. Cost-volume-profit relationships that are curvilinear may be analyzed linearly by considering...

51. Cost-volume-profit relationships that are curvilinear may be analyzed linearly by considering only

a. fixed and mixed costs.

b. relevant fixed costs.

c. relevant variable costs.

d. a relevant range of volume.

52. After the level of volume exceeds the break-even point

a. the contribution margin ratio increases.

b. the total contribution margin exceeds the total fixed costs.

c. total fixed costs per unit will remain constant.

d. the total contribution margin will turn from negative to positive.

53. Which of the following will decrease the break-even point?

Decrease in Increase in direct Increase in

fixed cost labor cost selling price

a. yes yes yes

b. yes no yes

c. yes no no

d. no yes no

54. At the break-even point, fixed costs are always

a. less than the contribution margin.

b. equal to the contribution margin.

c. more than the contribution margin.

d. more than the variable cost.

55. The method of cost accounting that lends itself to break-even analysis is

a. variable.

b. standard.

c. absolute.

d. absorption.

56. Given the following notation, what is the break-even sales level in units?

SP = selling price per unit, FC = total fixed cost, VC = variable cost per unit

a. SP/(FC/VC)

b. FC/(VC/SP)

c. VC/(SP – FC)

d. FC/(SP – VC)

57. Consider the equation X = Sales – [(CM/Sales) × (Sales)]. What is X?

a. net income

b. fixed costs

c. contribution margin

d. variable costs

58. If a firm’s net income does not change as its volume changes, the firm(‘s)

a. must be in the service industry.

b. must have no fixed costs.

c. sales price must equal $0.

d. sales price must equal its variable costs.

59. Break-even analysis assumes over the relevant range that

a. total variable costs are linear.

b. fixed costs per unit are constant.

c. total variable costs are nonlinear.

d. total revenue is nonlinear.

60. To compute the break-even point in units, which of the following formulas is used?

a. FC/CM per unit

b. FC/CM ratio

c. CM/CM ratio

d. (FC+VC)/CM ratio

16. ABC corporation has got a demand for particular part at 10,000 units per year. The cost per unit is

ABC corporation has got a demand for particular part at 10,000 units per year. The cost per unit is #2 and it costs #36 to place an order and to process the delivery. The inventory carrying cost is estimated at 9 percent of average inventory investment. Determine; (i) Economic order quantity (ii) Optimum number of orders to be placed per annum (iii) Minimum total cost of inventory per annum

17. The trial balance columns of the worksheet for Warren Roofing at March 31, 2017, are as follows. ...

The trial balance columns of the worksheet for Warren Roofing at March 31, 2017, are as follows. Other data: 1. A physical count reveals only $600 of roofing supplies on hand. 2. Depreciation for March is $253. 3. Unearned revenue amounted to $210 at March 31. 4. Accrued salaries are $800.

18. 5. Which is the process of getting activities completed efficiently and effectively with and through

5. Which is the process of getting activities completed efficiently and effectively with and through other people? (a) Supervision (b) Leading (C) Management (d) Controlling 6. Wasting resources is considered to be an example of (a) Ineffectiveness (b) Inefficiency (C) Effectiveness (d) Efficiency 7. Effectiveness is synonymous with (a) Cost minimization (b) Resource control (C) Goal attainment (d) Efficiency 8. The French industrialist who first identified the basic management functions is (a) Weber (b) Taylor (c) Herzberg (d) Fayol 9. Which of the following management functions from the mid-1950s is no longer included in the basic functions of management? (a) Staffing (b) Leading (c) Controlling (d) Planning 10. According to Mintzberg’s management roles, which roles are those that involve people and other duties that are ceremonial and symbolic in nature? (a) Informational (b) Interpersonal (c) Technical (d) Decisional 11. All of the following are examples of informational roles according to Mintzberg except: (a) Spokesperson (b) Disseminator (C) Liaison (d) Monitor

19. Which of the following is not one of the sections of a cash budget?

Which of the following is not one of the sections of a cash budget?

(a) Cash receipts section.

(b) Cash disbursements section.

(c) Financing section.

(d) Cash from operations section.

20. I just need the answer to the part 5 and part 8 I just need the answer to the part 5 and part 8 I ju

Comprehensive Problem 1 Part 1: The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The chart of accounts for Kelly Consulting is shown below: 11 Cash 32 Retained Earnings 12 Accounts Receivable 33 Dividends 14 Supplies 41 Fees Earned 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 21 Accounts Payable 55 Insurance Expense 22 Salaries Payable 59 Miscellaneous Expense 23 Unearned Fees 31 Common Stock The post-closing trial balance as of April 30, 2018, is shown below: Kelly Consulting Post-Closing Trial Balance April 30, 2018 Credit Cash Account No. 11 12 14 Debit 22,100 3,400 1,350 3,200 1,500 14,500 Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Office Equipment Accumulated Depreciation Accounts Payable Salaries Payable 15 330 800 Unearned Fees 120 2,500 30,000 Common Stock Retained Earnings 12,300 46,050 46,050 Comprehensive Problem 1 Part 2 and Part 3: The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete part 1 before completing parts 2 and 3. Part 2: Using the attached spreadsheet, post the journal entries from part 1 to a ledger of four-column accounts. Part 3: Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank. Kelly Consulting Unadjusted Trial Balance May 31, 2018 Debit Balances Credit Balances Account Title Cash 44,195 Accounts Receivable 8,080 Supplies ? 2,085 3,200 Prepaid Rent Prepaid Insurance ? Office Equipment 1,500 14,500 Accumulated Depreciation 330 Accounts Payable 895 ? Salaries Payable Unearned Fees 7,000 Common Stock 42,300 Retained Earnings 42,300 Dividends 10,500 Fees Earned 36,210 1,380 Salary Expense Rent Expense ? Supplies Expense Depreciation Expense ? Insurance Expense Miscellaneous Expense 1,295 86,735 86,735 Comprehensive Problem 1 Part 4 and Part 6: The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete parts 1, 2 and 3 before completing parts 4 and 6. Please note that part 5 is optional. Part 4: At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during May is $275. b. Supplies on hand on May 31 are $715. C. Depreciation of office equipment for May is $330. d. Accrued receptionist salary on May 31 is $325. e. Rent expired during May is $1,600. f. Unearned fees on May 31 are $3,210. Part 6: Journalize the adjusting entries. Then, post the entries to the attached spreadsheet from part 2. a. Insurance expired during May is $275. Post. Ref. Credit Date Account Name May 31 Insurance Expense ? Debit 275 C Prepaid Insurance ? 275 Credit b. Supplies on hand on May 31 are $715. Date Account Name Post. Ref. May 31 Supplies Expense Supplies Debit 1,370 L 1,370 c. Depreciation of office equipment for May is $330. Date Account Name Post Debit Credit 31 29 330 Depreciation Expense Accumulated Depreciation ? 330 Credit d. Accrued receptionist salary on May 31 is $325. Date Account Name Post. Ref. May 31 Salary Expense Salaries Payable Debit 325 C 325 Credit e. Rent expired during May is $1,600. Date Account Name Post. Ref. May 31 Rent Expense Prepaid Rent Debit 1,600 D 1,600 f. Unearned fees on May 31 are $3,210. Comprehensive Problem 1 Part 5: Work Sheet The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete parts 1, 2, 3, 4 before completing part 5. Part 5: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet using the following adjustment data. a. Insurance expired during May is $275. b. Supplies on hand on May 31 are 5715. c. Depreciation of office equipment for May is $330. d. Accrued receptionist salary on May 31 is $325. e. Rent expired during May is $1,600. f. Unearned fees on May 31 are $3,210. If an amount box does not require an entry, leave it blank or enter "o". Kelly Consulting End-of-Period Spreadsheet (Work Sheet) For the Month Ended May 31, 2048 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Unadjusted Trial Balance Debit Credit Income Statement Debit Credit Balance Sheet Debit Credit Account Title Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Office Equipment Accum. Depreciation Accounts Payable Salaries Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Earned Salary Expense Rent Expense Supplies Expense Depreciation Expense Insurance Expense Miscellaneous Expense Comprehensive Problem 1 Part 7: The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete parts 1, 2, 3, 4, and 6 before completing part 7. Part 5 is optional. Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank. Kelly Consulting Adjusted Trial Balance May 31, 2048 Debit Balances Credit Balances Account Title Cash Accounts Receivable Supplies ? Prepaid Rent 44,195 8,080 7151 1,600 1,225 14,500 Prepaid Insurance Office Equipment 660 Accumulated Depreciation Accounts Payable Salaries Payable 895 325 Unearned Fees 3,210 42,300 Common Stock Retained Earnings ? 10,500 x Fees Earned | 40,000 Salary Expense ? Rent Expense Supplies Expense V Depreciation Expense Insurance Expense Miscellaneous Expense 1,705 1,600 1,370 330 275 1,295 87,390 L 87,390 Feedback Comprehensive Problem 1 Part 8: The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. NOTE: You must complete parts 1, 2, 3, 4, 6 and 7 before completing part 8. Part 5 is optional. Prepare an income statement. Kelly Consulting Income Statement For the Month Ended May 31, 2018 Expenses: Prepare a statement of stockholders' equity. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Kelly Consulting Statement of Stockholders' Equity For the Month Ended May 31, 2018 Common Stock Retained Earnings Total Prepare a balance sheet. Kelly Consulting Balance Sheet May 31, 2018 Liabilities Current liabilities: Assets Current assets: Total liabilities Total current assets Property, plant, and equipment: Stockholders' Equity Total property, plant, and equipment Total stockholders' equity Total liabilities and stockholders' equity Total assets