Question 1
1. Using only the information presented on the Consolidated Balance Sheets and Consolidated Statements of Operation, answer the following questions: a. Assume that all sales (use ?Net Sales?) are made on account. Were there more credit sales or cash collections of credit sales during 2010? b. Assume that all inventory purchases?which you must calculate?are made on account, and further assume that inventory is the only transaction which Amazon.com pays for on credit. Was there a greater amount of purchases or cash payments made on account during 2010? Requirement 1: Create two T-Accounts?one for Accounts Receivable (A/R) and another for Accounts Payable (A/P)?to calculate your answers. For the purposes of this question, assume that the balance sheet amount for ?Accounts receivable, net and other? is the actual balance of Accounts Receivable at the end of each year. 2. Refer to information in Note 1?Description of Business and Accounting Policies in the Notes to the Consolidated Financial Statements related to Accounts Receivable. a. Does Amazon.com account for the possibility that some customers or vendors may not fully pay for previous purchases on credit? If so, how? If not, why not? b. Assume that all receivables are ?Accounts Receivable? (i.e., there are no ?other? or ?vendor? receivables). How is the amount reported on the balance sheet different from the ending balance of ?Accounts Receivable? in a given year (Hint: there is a keyword that should tip you off)? Calculate the actual ending balance of ?Accounts Receivable? in 2010 and 2009. c. Suppose that in 2011, Amazon.com receives cash payments for customer purchases made on account in prior periods totaling $1,600 million. Evaluate how well the managers of Amazon.com accounted for the possibility that some customers may not fully pay for purchases made on credit. That is, did the managers of Amazon.com overestimate or underestimate how much they would actually receive from customers and vendors for previous purchases on account? Requirement 2: Briefly answer each question with no more than 2-3 sentences each. If necessary, you may use appropriate T-accounts (e.g., Accounts Receivable) to help explain your responses. 3. Refer to information in Note 1?Description of Business and Accounting Policies and Note 3?Fixed Assets in the Notes to the Consolidated Financial Statements. a. What method of depreciation does Amazon.com use, and why isn?t ?Depreciation Expense? on the income statement? b. Note that each class of assets has a separate ?Accumulated Depreciation? contra-asset account. Further assume that Depreciation Expense related to the ?Technology and Infrastructure? class of assets for 2010 is $292 million. What other transaction related to this class of assets must have happened in 2008? Requirement 3: Briefly answer questions (a) and (b) above. In addition, draw a T-account (you will need to determine which account to analyze in order to answer the above question!) to support your response to question (b), highlighting the amount of the additional transaction. 4. Refer to the summarization of the legal proceedings in Note 6?Commitments and Contingencies. a. Why is it necessary to disclose this information in the footnotes? b. In most cases, there are no specifications regarding how an individual lawsuit against Amazon.com may have a monetary impact in the future, but the suits are discussed at length. Therefore, what is the relative likelihood that these cases will result in a ruling that is unfavorable for Amazon.com? c. Suppose that one lawsuit filed against Amazon.com was settled on November 13, 2010 (the first cash payment is made some time during 2011). Amazon.com was compelled to pay the claimant for infringement damages of $600 million in equal installments over the next three years. How should Amazon.com account for this outcome? How could this impact the financial position of Amazon.com? Requirement 4: Briefly answer questions (a) and (b). Recall that there are specific criteria relating to disclosing contingent liabilities. For question (c), specify how this scenario would impact the 2010 Statement of Operations. In addition, how would this outcome change the 2010 Balance Sheet? What amounts would be added to which section the balance sheet, and how would they be classified? Finally, how would this event alter the liquidity of Amazon.com (you do not need to show calculations?just explain)? 5. Refer to the Consolidated Balance Sheet and Note 1?Description of Business and Accounting Policies as they relate to investment activities. The notes clearly specify how Amazon.com accounts for various investing activities. a. On the Balance Sheet, which line items include Short-term investments? Which line item includes Equity-method investments? b. Assume that ?Marketable Securities? on the balance sheet contain investments that are accounted for as trading securities. The ending balance in 2009 is $2,922 million. Suppose that during 2009, Amazon.com sells off $1,000 million of these investments, and purchases additional investments at a cost of $1,218. What other transaction or adjustment should have occurred to arrive at the ending balance of $4,985 million? Requirement 5: Answer question (a) briefly. For question (b), create a T-Account for the marketable securities. Clearly label the beginning and ending balances and the effects of Amazon.com?s transactions during 2010 on this account. 6. Refer to the Consolidated Balance Sheet and Consolidated Statement of Cash Flows for 2010. Note that no shares of preferred stock have been issued. a. Suppose that during 2010, Amazon.com?s Board of Directors decided to issue preferred stock (100 million shares of $100 par, $7 preferred stock) in 2011 to raise additional capital. What impact would this have on the 2011 Statement of Cash Flows? b. Given the company?s debt position, not including the cash received from issuance of the preferred stock, would this be a sound business decision for Amazon.com?s managers? Requirement 6: For questions in part (a), calculate the amount of the preferred stock dividend; how would this impact Cash Flows Provided (Used) by Operating, Investing, and/or Financing activities? For question (b), compute the company?s liquidity using the Quick Ratio as of the end of 2010. Given this ratio, would issuing the preferred stock be a good decision? 7. Refer to the Consolidated Statements of Operations for 2008, 2009, and 2010. a. In Microsoft Excel or a similar program, replicate the following line items: Net Sales, Gross Profit, Income from Operations, and Net Income for all three years, but add an additional column after each year. In the additional column, perform a vertical analysis of these income line items of Amazon.com. In 2010, what percent of revenue is retained by Amazon.com after (i) reselling its products; (ii) accounting for necessary and ongoing business activities; and (iii) after all business activities? How do the results of operations in 2010?that is, these various income line items?compare to the operations of previous years? b. Assume Wal-Mart, Inc., a competitor of Amazon.com, reports the following results of operations. How do the two companies compare? Requirement 7: For (a), first present your replication and vertical analysis of Amazon.com, Inc. for all three years. In one sentence, indicate the percent of revenue retained for each of the three income specifications for 2008. In 1-2 additional sentences, explain whether operations have significantly changed over the three years. For requirement (b), prepare a Common Size comparison of Amazon.com and Wal-Mart. Explain some possible causes of the differences in Gross Profit and Net Income. 8. Refer to the Consolidated Financial Statements and the Notes to the Consolidated Financial Statements. Requirement 8: Refer to the list of qualitative/enhancing characteristics and underlying principles of accounting below (right-hand column). For each, identify one item contained within the Consolidated Financial Statements or Notes to the Consolidated Financial Statements of Amazon.com that follows these characteristics or principles. These items may include: (a) specific account names; (b) accounting treatments; (c) specific notes; or (d) parts of the financial statements themselves, such as the format, heading, etc. For example, Accounts Receivable follows the Revenue principle because Amazon.com recognizes revenue when it is earned, not necessarily when Cash is received (you may not use this example as one of your answers). Accounting Information Characteristics/Principles Followed 1 Reliability 2 Relevance 3 Time Period Concept 4 Consistency 5 Matching Principle 6 Revenue Principle 7 Conservatism Principle 8 Full Disclosure Principle,Hope this is a better copy,This is a proper copy of the instructions
Question 2
Marketing research Read the following attachment (pdf) and answer the following 9 questions. 1. what is the target population? 2. what population parameter is being estimated, and what statistic is being calculated? 3. what sampling frames were used in each of the two studies? 4. what type of sampling procedure was employed in the study conducted by Toade & Associates? Explain the basis of your determination. 5. do you believe the sampling procedure employed in the Toade study was appropriate given the objective of measuring the senator's overall job approval rating? Desribe your reasoning in detail. 6. what type of sampling procedure was employed in the study conducted by the research firm on behalf of Senator Newton? Explain the basis of your determination. 7. do you believe the sampling procedure employed in the study conducted for Senator Newton was appropriate given the objective of measuring the senator's overall job approval rating? Describe your reasoning in detail. 8. which of the two studies do you believe produced the numbers that are more trustworthy? Explain why you have drawn this conclusion. 9. design a sampling plan that could be used in a new study that you believe would provide the fairest way to resolve this case. Describe in detail your reasoning for proposing this method of sampling.
Question 3
I need WACC and NPV over five year period calculations on Excel attach information,Here is another file and requirements,This is a programmatic assessment. The Ongko Furniture Store Analysis gives students the opportunity to analyze information and apply capital budgeting techniques to arrive at the best solution. Students should use information given to them through the scenario and the concepts they have learned, up to this point, to perform a decision analysis to create the best alternative to solve the current situation in the given scenario. Resource Required Ch. 8, 9, & 10 in Corporate Financial Management The paper effectively and appropriately provides the following: ? A sensitivity analysis ? The optimal weighted average cost of capital (WACC) ? A discussion on the use of multiple valuation techniques in reducing risks ? The net present value (NPV) of future cash flows for each of the alternatives he paper is 1,050 to 1,750 words in length. ? The paper provides sufficient background on the topic and previews major points. ? The content is logical, it flows, and it reviews the major points. Formatting or layout and graphics are pleasing to the eye (font, colors, spacing). ? Rules of grammar, usage, and punctuation are followed, and spelling is correct. ? APA formatting is followed.
Question 4
1. Conversion costs in a process cost system include: (Points : 2) Direct materials and direct labor. Direct labor and manufacturing overhead. Direct materials and manufacturing overhead. Manufacturing overhead and selling, general & administrative expenses. 2. The costs of operating a regional warehouse is an example of a: (Points : 2) Customer unit-level cost. Customer batch-level cost. Customer-sustaining cost. Distribution-channel cost. 3. Firms should use a process costing system when they produce products that: (Points : 2) Are semi-homogeneous. Pass through a series of manufacturing processes. Pass through only one department. Have small batch sizes. 4. Which one of the following is a high value-added activity? (Points : 2) Set up. Rework. Repair. Storage. Processing. 5. The sum of units transferred out and ending inventory units, assuming no spoilage, determines the: (Points : 2) Units completed during the period. Units spoiled. Units transferred in during the period. Units accounted for. 6. For job costing in service industries, overhead costs are usually applied to jobs based on: (Points : 2) Factory overhead. Indirect labor. Indirect materials. Direct labor-hours or dollars. Direct materials. 7. Activity-based costing (ABC) differs from other costing approaches in its: (Points : 2) Incorporating customer needs. Complexity in implementation. Focus on operational excellence. Use of cost objects. Recognition of the causal relationship. 8. With the increase in competition over the past several years, traditional cost accounting systems have become less common in product costing because (Points : 2) They use volume-based cost drivers. They use structural cost drivers. They use executional cost drivers. They use indirect cost drivers. 9. Which of the following characteristics applies to process costing but not to job costing? (Points : 2) Identifiable batches of production. Average costs. Equivalent units. Application of overhead. 10. An adaptation of ABC costing that simplifies ABC by assigning resource costs directly to cost objects is called: (Points : 2) Activity analysis Multistage ABC Time-Driven ABC Resource Consumption Accounting Customer profitability analysis 11. The major limitation of volume-based costing systems is the use of volume-based: (Points : 2) Criteria. Standards. Rates. Variances. Restrictions. 12. Roussey Co. had the following information for the month of June: Work-in-Progress Inventory ? 6/1 2,000 Units Units Transferred In 10,000 Units Work-in-Progress Inventory ? 6/30 3,000 Units Beginning work-in-process inventory is 30 percent complete as to conversion. Ending work-in-process inventory is 40 percent complete as to conversion. Materials are added at the end of the process. How many units were completed in June? (Points : 2) 12,000. 10,000. 9,600. 9,000. 7,000. 13. Freight charges based on number of units shipped to customers is a: (Points : 2) Customer unit-level cost. Customer batch-level cost. Customer-sustaining cost. Distribution-channel cost. Sales-level cost. 14. A Production Cost Report summarizes all except: (Points : 2) The physical units of a department. The equivalent units of a department. The costs incurred during the period. The costs assigned to both units completed and ending work-in-process inventories. The budgeted labor and overhead application rates. 15. From the industries listed below, which one is most likely to use process costing in accounting for production costs? (Points : 2) Printing shop. Accounting firm. Electrical contractor. Steel mill. 16. In an organization that makes furniture, which of the following is a high value-added activity? (Points : 2) Using direct materials in production. Inspecting production. Storing finished goods inventory. Moving work-in-process inventory between work stations. Reworking the product to repair defects. 17. A time ticket: (Points : 2) Shows the time an employee worked on each job, pay rate, and total cost chargeable to each job. Shows the time that a department's employees worked on all jobs, the pay rate of each employee, and the total cost chargeable to each job. Shows the time an employee worked on each job and the total cost chargeable to each job only. Shows the time an employee worked on each job only. 18. Which of the following is an example of a high-value-added activity? (Points : 2) Shipping the customer's order. Scheduling the customer order for production. Inspecting goods to ensure the right quantity is being shipped. E-mailing a customer to assure that a complaint will be resolved expeditiously. 19. Oregonian Fisheries Inc. processes king salmon for various distributors. Two departments are involved ? processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2010 are provided below: Percent Completed Tons of King Salmon Materials Conversion Work-in-Progress Inventory ? 6/1 1,800 90 80 Work-in-Progress Inventory ? 6/30 2,800 60 40 Started Processing During June 7,800 Total equivalent units for conversion under the weighted-average method are calculated to be: (Points : 2) 6,860 equivalent units. 8,480 equivalent units. 6,480 equivalent units. 7,440 equivalent units. 7,920 equivalent units. 20. Jackson Inc. listed the following data for 2010: Budgeted Factory Overhead $1,300,000 Budgeted Direct Labor Hours 82,000 Budgeted Machine Hours 41,000 Actual Factory Overhead 1,201,000 Actual Direct Labor Hours 86,300 Actual Machine Hours 39,400 Round calculations to two significant digits. Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2010 is: (Points : 2) $27.40 per machine hour. $29.38 per machine hour. $31.71 per machine hour. $33.50 per machine hour. $37.41 per machine hour. 21. Customer equity is a type of analysis used to: (Points : 2) Assess the ethical practices of each salesperson-customer relationship. Assess the current profit potential of a customer. Assess the long term profit potential of a customer. Assess the current profit potential of all the firm's customers. Assess the long term profit potential of all the firm's customers. 22. In a process costing system, the cost of abnormal spoilage should be: (Points : 2) Prorated between units transferred out and ending inventory. Included in the cost of units transferred out. Treated as a loss in the period incurred. Ignored in the period incurred. 23. Normal spoilage is defined as: (Points : 2) Spoilage that occurs under efficient operations. Scrap. Uncontrollable waste as a result of a special production run. Spoilage that arises under inefficient operations. Controllable spoilage. 24. The journal entry to record incurred direct labor would include a credit to: (Points : 2) Work-in-Process Inventory. Accrued Payroll. Factory Overhead. Materials Inventory. Finished Goods Inventory. 25. Which of the following is most likely to be the cost driver for the packaging and shipping activity? (Points : 2) Number of setups. Number of components. Number of orders. Hours of testing. Number of production runs.
Question 5
1. A 10-column spreadsheet used to draft a company's unadjusted trial balance, adjusting entries, adjusted trial balance and financial statements and which is an optional tool in the accounting process is a(n): (Points : 2) Adjusted trial balance Work sheet Post-closing trial balance Unadjusted trial balance General ledger 2. Based on the following information, determine the current assets, assuming all accounts have a normal balance? Cash $ 6,754 Dividends $ 2,000 Accounts receivable $ 13,733 Consulting fees earned $ 13,718 Office supplies $ 2,625 Rent expense $ 3,673 Land $ 37,153 Salaries expense $ 6,642 Office equipment $ 14,535 Telephone expense $ 560 Accounts payable $ 6,463 Miscellaneous expense $ 280 Common stock $ 54,490 Retained Earnings ? (Points : 2) $74,800 $37,647 $60,265 $23,112 3. A company pays each of its two office employees each Friday at the rate of $100 per day each for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is: (Points : 2) Debit Unpaid Salaries $600 and credit Salaries Payable $600 Debit Salaries Expense $400 and credit Salaries Payable $400 Debit Salaries Expense $600 and credit Salaries Payable $600 Debit Salaries Payable $400 and credit Salaries Expense $400 4. On January 1, Able Company purchased equipment costing $135,000 with an estimated salvage value of $10,500, and an estimated useful life of five years. What is the amount that should be recorded as depreciation on December 31? (Points : 2) $27,000 $24,900 $29,100 $135,000 5. Which of the following accounts would not be on the post closing trial balance? (Points : 2) Accounts Payable Accounts Receivable Common Stock Dividends Retained Earnings 6. A company's Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period? (Points : 2) $2,700 $2,900 $3,300 $3,500 $3,700 7. On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: (Points : 2) Debit Prepaid Insurance, $1,800; credit Cash, $1,800 Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440 Debit Prepaid Insurance, $360; credit Insurance Expense, $360 Debit Insurance Expense, $360; credit Prepaid Insurance, $360 Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440 8. A classified balance sheet: (Points : 2) Measures a company's ability to pay its bills on time Organizes assets and liabilities into important subgroups Presents revenues, expenses and net income Reports operating, investing and financing activities Reports the effect of profit and dividends on retained earnings 9. A company purchased a new truck at a cost of $42,000 on July 1, 2011. The truck is estimated to have a useful life of 6 years and a salvage value of $3,000. How much depreciation expense will be recorded for the truck for the year ended December 31, 2011? (Points : 2) $3,250 $3,500 $4,000 $6,500 $7,000 10. Unearned revenue is reported on the financial statements as: (Points : 2) A revenue on the balance sheet A liability on the balance sheet An unearned revenue on the income statement An asset on the balance sheet An operating activity on the statement of cash flows 11. Based on the following information, what would be the beginning balance in the Retained Earnings Account, assuming all accounts have a normal balance? Cash $ 6,754 Dividends $ 2,000 Accounts receivable $ 13,733 Consulting fees earned $ 13,718 Office supplies $ 2,625 Rent expense $ 3,673 Land $ 37,153 Salaries expense $ 6,642 Office equipment $ 14,535 Telephone expense $ 560 Accounts payable $ 6,463 Miscellaneous expense $ 280 Common stock $ 54,490 Retained Earnings ? (Points : 2) $0 $13,718 $13,155 $13,284 12. A trial balance prepared after adjustments have been recorded is called a(n): (Points : 2) Balance sheet Adjusted trial balance Unadjusted trial balance Classified balance sheet Unclassified balance sheet 13. On April 1, 2011, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2011? (Points : 2) $1,350 $450 $1,012.50 $337.50 $37.50 14. A company earned $2,000 in net income for October. Its net sales for October were $10,000. Its profit margin is: (Points : 2) 2% 20% 200% 500% $8,000 15. The Retained Earnings account has a credit balance of $17,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800 and dividends are $9,000, what is the ending balance in the Retained Earnings account after all closing entries are made? (Points : 2) $8,000 $15,400 $23,400 $17,000 $32,400 16. A post-closing trial balance includes: (Points : 2) All ledger accounts with balances, none of which can be temporary accounts All ledger accounts with balances, none of which can be permanent accounts All ledger accounts with balances, which include some temporary and some permanent accounts Only revenue and expense accounts Only asset accounts 17. Financial statements are typically prepared in the following order: (Points : 2) Balance sheet, statement of retained earnings, income statement Statement of retained earnings, balance sheet, income statement Income statement, balance sheet, statement of retained earnings Income statement, statement of retained earnings, balance sheet 18. The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is: (Points : 2) Cash basis accounting The matching principle The time period principle Accrual basis accounting Revenue basis accounting 19. On June 30, 2011, Apricot Co. paid $5,000 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31, 2011 for Apricot would include: (Points : 2) A debit to an expense for $1,250 A debit to a prepaid expense for $1,250 A credit to an expense for $3,750 A debit to a prepaid expense for $3,750 A credit to a liability for $1,250 20. An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n): (Points : 2) Accrued expense Contra account Accrued revenue Intangible asset Adjunct account 21. The adjusted trial balance contains information pertaining to: (Points : 2) Asset accounts only Balance sheet accounts only Income statement accounts only All general ledger accounts Revenue accounts only 22. Which of the following identifies the proper order of the accounting cycle? (Points : 2) Analyze, Journalize, Unadjusted Trial Balance Analyze, Post, Unadjusted Trial Balance Journalize, Post, Adjusted Trial Balance Unadjusted Trial Balance, Adjusted Trial Balance, Close Adjusted Trial Balance, Adjustments, Financial Statements 23. A company had no office supplies available at the beginning of the year. During the year, the company purchased $250 worth of office supplies. On December 31, $75 worth of office supplies remained. How much should the company report as office supplies expense for the year? (Points : 2) $75 $125 $175 $250 $325 24. The difference between the cost of an asset and the accumulated depreciation for that asset is called (Points : 2) Depreciation Expense Unearned Depreciation Prepaid Depreciation Depreciation Value Book Value 25. A company shows a $600 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired insurance of $200. This adjusting entry results in: (Points : 2) $200 less in net income $200 more in net income $200 difference between the debit and credit columns of the Unadjusted Trial Balance $200 of prepaid insurance An error in the financial statements
