Question 1
1.A firm has the following information at December 31, 2007: Cash 10,000 A/R 80,000 Inventory 90,000 A/P 160,000 Bonds Payable (long term) 400,000 Common Stock (Outstanding Shares 1,000) 20,000 Retained Earnings 180,000 Fixed Assets 580,000 Net Income $25,000 Dividends Paid $10,000 Market Per Share Price $50 a. Prepare a balance sheet for December 31, 2007 based on the above information: b. Calculate the current ratio: How would you interpret this ratio? c. Calculate the quick ratio: How would you interpret this ratio? d. Would you extend credit to this company on a short term basis? Why or why not? e. Calculate the earnings per share. f. Calculate the Price to Earnings Ratio: How would you interpret this ratio? g. What was the balance of retained earnings at the beginning of the year? 2.Use the following tax rates to work the problem and assume the business has taxable income of $126,000. Taxable Income Tax Rate $ 0 - 50,000 15% 50,001 - 75,000 25% 75,001 - 100,000 34% 100,001 - 335,000 39% a. How much does the business owe in taxes? b. What is the average tax rate paid? c. What is the marginal tax rate for the business? d. How much additional tax would the business owe on $5,000 more of income? 3. Use the following information to answer the questions that follow: Bayside Inc. 2005 Income Statement ($ in thousands) Net sales $5,680 Less: Cost of goods sold 4,060 Less: Depreciation 420 Earnings before interest and taxes 1,200 Less: Interest paid 30 Taxable Income $1,170 Less: Taxes 410 Net income $ 760 Bayside, Inc. 2004 and 2005 Balance Sheets ($ in thousands) 2004 2005 2004 2005 Cash $ 70 $ 180 Accounts payable $1,350 $1,170 Accounts rec. 980 840 Long-term debt 720 500 Inventory 1,560 1,990 Common stock 3,200 3,500 Total $2,610 $3,010 Retained earnings 940 1,200 Net fixed assets 3,600 3,360 Total assets $6,210 $6,370 Total liabilities & equity $6,210 $6,370 Calculate the following: for 2005 only (Show your work). Give a short assessment of why you think the calculated ratio is good or bad. Sometimes you may have a hard time making that determination. Phrase your answer then to show that you understand the calculation. a. Current Ratio (3 points) b. Quick Ratio (3 points) c. Total Asset Turnover (3 points) d. Inventory Turnover and Average Days (3 points) e. Receivables Turnover and Days Sales in Receivables (3 points) f. Total Debt Ratio (3 points) g. Debt to Equity Ratio (3 points) h. Profit Margin (3 points) i. Return on Assets (3 points) j. Return on Equity (3 points) Additional Information at the end of 2005: Fair Market Value of the Stock $190 per share Number of Common Shares Outstanding 100,000 Dividends paid during 2005 - $4 per share k. Calculate the earnings per share (3 points) l. What is the Price to Earnings ratio? (3 points) 4. XYZ company has the following information in the liability and equity section of the balance sheet: Total Liabilities $ 500,000,000 Common Stock $ 10,000,000 Retained Earnings $1,000,000,000 Total Shareholder Equity $1,010,000,000 Total Liab and Equity $1,510,000,000 Additional Information: Total Common Shares Outstanding 500,000 Dividends per share for the year $1 Net Income for the year 20,000,000 Fair market value per share $210 Based on the information provided, should the shareholders be happy? Explain and substantiate your answer in detail. Hint: Calculating the ROA, ROE, Debt to Equity, and PE ratios as well as Earnings Per Share will help you come up with an answer. Make sure you look closely at Retained Earnings. 5. Find the most recent balance sheet and income statement for a Gorman Rupp Company (12-31-2010). You should use the balance sheet contained in the companies annual report. Answer the following questions: Balance Sheet Date: a. What is the amount of retained earnings at 12-31-10? (2 points) b. How many common shares are outstanding at the end of 2010? (2 Points) c. What is the total maket value of the company at 12-31-10? (2 Points) d. How leveraged is the company in terms of debt at 12-31-10? Explain your answer. (4 Points) e. What is the Price to Earnings ratio at 12-31-10? Is this a good ratio for the company? Explain. (4 points)
Question 2
You are engaged in your first audit of Pesky Pest Control Pty Ltd for the year ended 30 June 2012. The company began doing business in July of the previous year and provides pest control services for industrial enterprises. Additional information is as follows: The office staff consists of a bookkeeper, a typist and the president, Mike Feld. In addition, the company employs 15 service representatives on an hourly basis who are assigned to individual territories to make both monthly and emergency visits to customers? premises. The service representatives submit weekly time reports, which include the customer?s name and the time devoted to each customer. Time charges for emergency visits are shown separately from regular monthly visits on the reports. As part of your evaluation you note the following:- 1) Pesky Pet requires customers are required to sign annual contracts which are prenumbered and prepared in duplicate. The original is filed in numerical order by contract anniversary date and the copy is given to the customer. The contract entitles the customer to pest control services once each month. Emergency visits are billed separately. 2) Fees for monthly services are payable in advance?quarterly, semi-annually or annually?and recorded on the books as ?income from services? when the cash is received. All payments areby cheques received by mail. 3) Prenumbered invoices for contract renewals are prepared in triplicate from information in the contract file. The original invoice is sent to the customer 30 days prior to the due date of payment, the duplicate copy is filed chronologically by due date and the triplicate copy is filed alphabetically by customer name. If payment is not received by 10 days after the due date, a cancellation notice is sent to the customer, and a copy of the notice is attached to the customer?s contract. The bookkeeper notifies the service representatives of all contract cancellations and reinstatements, and requires written acknowledgment of receipt of such notices. Mike Feld approves all cancellations and reinstatements of contracts. 4) Prenumbered invoices for emergency services are prepared weekly from information shown on the service representative?s time reports. The customer is billed at 300 per cent of the service representative?s hourly rate. These invoices, prepared in triplicate and distributed as shown above, are recorded on the books as ?income from services? at the billing date. Payment is due 30 days after the invoice date. 5) All remittances are received by the typist, who prepares a daily list of collections and stamps a restrictive endorsement on the cheques. A copy of the list is forwarded with the cheques to the bookkeeper, who posts the date and amount of each cheque received on the copies of the invoice in both the alphabetical and the chronological files. After posting, the copy of the invoice is transferred from the chronological file to the daily cash receipts binder, which serves as a subsidiary record for the cash receipts book. The bookkeeper totals the amounts of all remittances received, posts this total to the cash receipts book and attaches the daily remittance tapes to the paid invoices in the daily cash receipts binder. 6) The bookkeeper prepares a daily bank deposit slip and compares the total with the total amount shown on the daily remittance tapes. All remittances are deposited in the bank the day they are received. (Cash receipts from sources other than services need not be considered). 7) The financial report is prepared on an accrual basis. Required:- i)Identify at least four key controls and indicate the tests of controls you would use to examine the revenue from services account for the year ended 30 June 2012. ii)Identify any inherent concerns that you would have about the controls, that might cause you place less reliance on controls even if the test of controls appear adequate.
Question 3
The federal unemployment surtax of 0.2 percent expired on June 30, 2011. Because of the probability that the surtax will be reinstated, the authors, for this edition, have assumed in the end-of-chapter problems that the surtax will be reinstated, resulting in a gross FUTA tax of 6.2% and a net tax of 0.8%. 5-2A LO 3,4. Peyton Company?s payroll for the year is $737,910. Of this amount, $472,120 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Peyton Company?s state is 2.9% on the first $7,000 of each employee?s earnings. 5-4A LO 3,4. Due to its experience rating, Ianelli, Inc., is required to pay unemployment taxes on its payroll as follows: 1. Under SUTA for Illinois on taxable payroll of $18,000, the contribution rate is 4%. 2. Under SUTA for Iowa on taxable payroll of $24,000, the contribution rate is 2.65%. 3. Under SUTA for Ohio on taxable payroll of $79,000, the contribution rate is 2.9%. 4. Under FUTA, the taxable payroll is $103,500. 5-14A LO 2,3,4. Marlene Grady and Pauline Monroe are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year: V. Hoffman (general office worker). . $1,700 per month A. Drugan (saleswoman) . . . . . . . . . . $15,000 per year G. Beiter (stock clerk) . . . . . . . . . . . . $180 per week S. Egan (deliveryman) . . . . . . . . . . . . $220 per week B. Lin (cleaning and maintenance, part-time). . . . . . . . . . . . . . . . . . . . $160 per week Grady and Monroe are each paid a weekly salary allowance of $950. The doll shop is located in a state that requires unemployment compensation contributions of employers of one or more individuals. The company is subject to state contributions at a rate of 3.1% for wages not in excess of $8,100. Compute each of the following amounts based upon the 41st weekly payroll period for the week ending October 12, 2012:
Question 4
Li Company produces large quantities of a standardized product. The following information is available for its production activities for January. Raw materials Factory overhead incurred Beginning inventory $ 26,000 Indirect materials used $ 81,500 Raw materials purchased (on credit) 255,000 Indirect labor used 50,000 Direct materials used (172,000 ) Other overhead costs 159,308 Indirect materials used (81,500 ) Total factory overhead incurred $ 290,808 Ending Inventory $ 27,500 Factory overhead applied Factory payroll (140% of direct labor cost) Direct labor used $ 207,720 Total factory overhead applied $ 290,808 Indirect labor used 50,000 Total payroll cost (paid in cash) $ 257,720 Additional information about units and costs of production activities follows. Units Costs Beginning goods in process inventory 2,200 Beginning goods in process inventory Started 30,000 Direct materials $ 3,500 Ending goods in process inventory 5,900 Direct labor 3,225 Factory overhead 4,515 $ 11,240 Status of ending goods in process inventory Direct materials added 172,000 Materials?Percent complete 50 % Direct labor added 207,720 Labor and overhead?Percent complete 65 % Overhead applied (140% of direct labor) 290,808 Total costs $ 681,768 Ending goods in process inventory $ 82,128 During January, 55,000 units of finished goods are sold for $50 cash each. Cost information regarding finished goods follows. Beginning finished goods inventory $ 155,000 Cost transferred in 599,640 Cost of goods sold (612,500 ) Ending finished goods inventory $ 142,140 6. value: 10 points Required: 1(a) Prepare journal entry dated January 31 to record the purchase of raw materials. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 31 1(b) Prepare journal entry dated January 31 to record the direct materials usage. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 31 1(c) Prepare journal entry dated January 31 to record the indirect materials usage. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 31 1(d) Prepare journal entry dated January 31 to record the factory payroll costs. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 31 1(e) Prepare journal entry dated January 31 to record the direct labor costs used in production. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 31 1(f) Prepare journal entry dated January 31 to record the indirect labor costs. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 31 1(g) Prepare journal entry dated January 31 to record the other overhead costs?credit Other Accounts. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 31 1(h) Prepare journal entry dated January 31 to record the overhead applied. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 31 1(i) Prepare journal entry dated January 31 to record the goods transferred to finished goods. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 31 1(j) Prepare journal entries dated January 31 to record the sale of finished goods. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 31
Question 5
Agency: Department of Labor Assignment 4: Evaluation of Agency?s Human Resources Management As a consultant, you need to develop an in-depth analysis and evaluation of the selected agency?s human resources management system and processes and then provide recommendations for improvement. Therefore, you will conduct interviews with agency representatives and research related academic sources and Websites. The analysis will be read by the VP of Accounts and Client Support as well as by the leaders of the agency for whom you are working. Write a five to six (5-6) page paper in which you: 1.Analyze three to four (3-4) of the major components of the agency?s human resource system, processes, and performance evaluation plan for hiring and retaining a diversified workforce. (Title this section Human Resource Processes.) 2.Analyze and describe the implications impacting the agency?s current employment trend, growth, and delivery of its products and services. (Title this section Implications of Human Resource Workforce.) 3.Recommend two to three (2-3) managerial and professional skills and competencies required to improve the agency?s workforce by explaining each recommendation, providing reasons each recommendation would bring about improvement, providing two to three (2-3) ways the agency could implement programs in preparation for those skills not visible within the agency?s workforce as a method of promotion and advancement for current employees. (Title this section Succession Planning for Human Resource Management.) 4.Describe the consultant position you are performing by (a) giving it a title; (b) explaining two to three (2-3) major specifications required of the job and how each will be measured in a performance evaluation; and by (c) explaining two to three (2-3) ways this position will be used within the various departments of the agency and for meeting the specific goals / objectives of the agency. (This job description will be provided to the Agency Director who has requested it. As a resource, you are to use the Dictionary of Occupational Titles, located at http://www.occupationalinfo.org/ and published by the U. S. Department of Labor located at www.usajobs.gov. (Title this section Job Analysis and Design.) 5.Provide proof of one to two (1-2) interviews submitting the completed interview form with a list of questions for and responses from each interviewee. (Put this in the Appendix under Interview Forms.) 6.Provide four to five (4-5) relevant and credible outside resources that support the content of this assignment. (Include no more than one (1) non-government Website.) Your assignment must follow these formatting requirements: ?Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA format. Check with your professor for any additional instructions. ?Include a cover page containing the title of the assignment, the student?s name, the professor?s name, the course title, and the date. The sections must have appropriate titles. The cover page, reference page, and appendix pages are not included in the required assignment page length. The assignment must be submitted as a Microsoft Word document. The specific course learning outcomes associated with this assignment are: ?Recommend ways to improve specific areas of public administration. ?Analyze the major components of the system, processes, and methods for effective human resource management in the public sector. ?Assess external organizational and employee conditions, trends, and implications of these factors for human resource management of the private sector. ?Use technology and information resources to research issues in public administration. ?Write clearly and concisely about public administration using proper writing mechanics. Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills, using the following rubric. Click here to view the grading rubric.
