Question 1
Needing Help ASAP: Question #1 The Financial Accounting Standard's Board has created the Codification in order to put together topically, in a single location the authoritative guidance for US GAAP. REQUIRED: 1. Explain how the Codification improves financial accounting research since the time it was inaugurated in September 2009. 2. Explain what additional documents that professional accountants should use in addition to the Codification. List at least one circumstance when these additional documents should be used. Question #2 Certain company disclosures about its financial reporting practices are required by US GAAP. REQUIRED: 1. Select one of the areas studied in this class: Extraordinary and Discontinued Items; Sale leasebacks; Leases; Intangible Assets, Liquidation Basis of Accounting. Explain how this topic appears in financial statements under GAAP -- recognition, measurement, and disclosure. Explain what investors can learn about a company by attending to company disclosures of its financial reporting practices in the area you selected. 2. Name one improvement in US GAAP financial reporting that you would recommend for the benefit of investors and creditors in one of the five areas studied ( Extraordinary and Discontinued Items; Sale leasebacks; Leases; Intangible Assets, Liquidation Basis of Accounting). Provide a clear description of the improvement and support your recommendation. Question #3 You are the controller for ABC Company, and your company has just had its initial transaction in an area entirely new to the company. Provide a list of the steps you would undertake in order to decide on the appropriate financial reporting for this transaction. Question #4 You have read at least eight different articles from the professional accounting literature during the first half of this course. Select one article and explain how the article addressed each of the following: 1. What is the research question addressed in the article? 2. How will this article impact your understanding of or practice of financial reporting? Question #5 Companies are both a primary source of financial information about their financial reporting and a potentially biased provider of that information. REQUIRED 1. Explain the difference between primary sources of information and secondary sources of information. 2. What is the role of secondary sources of financial information? Identify at least two secondary sources, and discuss their advantages and disadvantages compared to company SEC filings. 3. If you suspect that a company has poor quality reported earnings, explain how would you investigate the company and its financial reporting to assess the quality of their reported earnings.
Question 2
Assignment 2: Creating Your Dream Job In this assignment, you get the chance to create your dream job and to build its compensation plan and appraisal performance. Write a six to eight (6-8) paper paper in which you: Create a job description and specifications for your dream job. Design a compensation and benefits package related to your dream job. Rationalize your compensation and benefits package. Be sure to indicate the research and considerations that went into the design of the compensation and benefits package. Imagine this is the only position of its kind in the organization. From this perspective, design a performance appraisal program to assess your job performance. Rationalize your performance appraisal program. Be sure to indicate the research and considerations that went into the design of the performance appraisal program. Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources. 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 or school-specific 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 cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are: Discuss job analysis, job descriptions, and specifications. Analyze various techniques, considerations, and designs of employee compensation programs. Analyze various techniques, considerations, and designs of performance appraisal programs. Use technology and information resources to research issues in human resource management. Write clearly and concisely about human resource management using proper writing mechanics.
Question 3
Case 8-4 Scorebroads, Electronic Displays, ETC. Excel format - please show formulas (assignment attached) Daktronics? included this statement in its 2005 annual report: Years Ended April 30, 2005 May 1, 2004 May 3, 2003 Net sales $230,346 $209,907 $177,764 Cost of goods sold 157,137 137,436 118,633 Gross profit 73,209 72,471 59,131 Operating expenses: Selling 32,840 27,305 24,966 General and administrative 10,434 9,510 7,422 Product design and development 10,499 8,126 6,918 53,773 44,941 39,306 Operating income 19,436 27,530 19,825 Nonoperating income (expense): Interest income 1,453 1,014 694 Interest expense (211) (478) (897) Other income (expense), net 768 586 974 Income before income taxes and minority interest 21,446 28,652 20,596 Income tax expense 5,786 10,907 8,107 Income before minority interest 15,660 17,745 12,489 Minority interest in income of subsidiary ? (18) (31) Net income $ 15,660 $ 17,727 $ 12,458 Earnings per share: Basic $ 0.83 $ 0.95 $ 0.68 Diluted $ 0.78 $ 0.89 $ 0.64 Daktronics, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share data) April 30, May 1, Assets 2005 2004 Current Assets: Cash and cash equivalents $ 15,961 $ 12,255 Marketable securities 8,105 4,001 Accounts receivable, less allowance for doubtful accounts 23,762 28,686 April 30, May 1, 2005 2004 Current maturities of long-term receivables 5,196 3,771 Inventories 24,612 16,604 Costs and estimated earnings in excess of billings 15,301 12,862 Prepaid expenses and other 1,725 905 Deferred income taxes 5,076 4,375 Income taxes receivable 1,812 813 Rental equipment available for sale 2,733 2,706 Total current assets 104,283 86,978 Property and equipment, net 31,053 25,096 Advertising rights, net 1,722 1,415 Long-term receivables, less current maturities 9,900 10,267 Goodwill 2,621 1,411 Intangible and other assets 1,101 920 Deferred income taxes 782 149 $151,462 $126,236 Liabilities and Shareholders? Equity Current Liabilities: Notes payable, bank $ 79 $ 214 Accounts payable 17,121 12,586 Accrued expenses and warranty obligations 10,973 9,911 Current maturities of long-term debt 909 1,181 Current maturities of long-term marketing obligations 304 115 Billings in excess of costs and estimated earnings 5,463 6,761 Customer deposits 4,164 2,829 Deferred maintenance revenue 2,983 1,700 Total current liabilities 41,996 35,297 Long-term debt, less current maturities 171 1,148 Long-term marketing obligations, less current maturities 595 350 Deferred income 1,357 1,134 Deferred income taxes 3,433 2,043 5,556 4,675 Shareholders? Equity: Common stock, no par value, authorized 60,000,000 shares; 19,165,369 and 18,886,492 shares issued at April 30, 2005 and May 1, 2004, respectively 17,739 16,406 Additional paid-in capital 2,684 2,274 Retained earnings 83,337 67,677 Treasury stock, at cost, 19,680 shares (9) (9) Accumulated other comprehensive income (loss) 159 (84) 103,910 86,264 $151,462 $126,236 Required a. Compute the following for 2005 and 2004: 1. Net profit margin 2. Total asset turnover (use year-end assets) 3. Return on assets (use year-end assets) 4. Operating income margin 5. Return on operating assets (use year-end assets) 6. Sales to fixed assets (use year-end fixed assets) 7. Return on investment (use year-end balance sheet accounts) 8. Return on total equity (use year-end equity) 9. Return on common equity (use year-end common equity) 10. Gross profit margin b. Comment on the trends in (a).
Question 4
"(TCO1) The two types of accounting are:____ and _____ (Points: 5) profit and nonprofit. financial and managerial. internal and external. bookkeeping and decision-oriented. 2. (TCO2) A company purchased inventory on account. This transaction increased assets and: (Points: 5) increased equity increased liabilities increased revenues decreased assets 3. (TCO1) Which of the following statements is FALSE? (Points: 5) reliable data may be supported by objective evidence. the informed opinion of owners is an important source of objective evidence. an independent appraisal, conducted by a licensed professional, is usually considered reliable. reliable data are verifiable. 4. (TCO2) A company purchased office supplies for cash. This transaction ______________________. (Points: 5) increased assets and decreased assets. increased assest and increased liabilities. increased assets and increased revenues. decreased assets and decreased liabilities. 5. (TCO2) Which type of account is increased when a company records a debt? (Points: 5) expense retained earnings liability none of the above are correct. 6. (TCO2) A trial balance has which of the following features? (Points: 5) totals for balance sheet accounts only totals for income statement accounts only totals for all accounts listed in the general ledger both A and B are correct 7. (TCO3) A company started the year with $400 of supplies. During the year the company purchased additional supplies costing $1,600. There were $800 of supplies on hand at the end of the year. An adjusted trial balance prepared at the end of the accounting period will show the which of the following balance in Supplies: (Points: 5) $1,400. $800. $600. $0. 8. (TCO3) The book value of an asset is computed as: (Points: 5) the cost of a plant asset less accumulated depreciation. the cost of a plant asset plus accumulated depreciation. depreciation expense plus accumulated depreciation. the cost of a plant asset less depreciation expense. 9. (TCO5) Differences between the amount of cash reported on a company?s bank statement and the balance in the company?s Cash account before the bank reconciliation are primarily due to: (Points: 5) errors in the accounting process by the company. errors made by the bank. differences between the cash basis and accrual basis of accounting. timing difference in recording transactions. 10. (TCO5) Under the allowance method, the entry to reinstate an account previously written off: (Points: 5) increases total assets. increases net income and increases total assets. decreases net income and increases total assets. has no effect on net income or total assets. 11. (TCO5) Portia Incorporated uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,000,000, and management estimates 2% will be uncollectible. Allowance for Uncollectible Accounts prior to adjustment has a debit balance of $1,900. The amount of expense reported on the income statement and the balance in Allowance for Uncollectible accounts, respectively, will be: (Points: 5) $41,900 and $40,000. $40,000 and $38,100. $38,100 and 40,000. $40,000 and $41,900. 12. (TCO5) If the Maturity Value of a 210 day note is $63,500 and the interest is $3,500, based on 10%, what is the principal of this note? (Points: 5) $ 3,500 $ 6,000 $63,500 $60,000 13. (TCO4) Deciding on which inventory method a company should use affects: (Points: 5) the profits to be reported. the income taxes to be paid. the values of ratios reported from the balance sheet. all of the above. 14. (TCO4) A company whose inventory consists of very unique items would probably use which inventory method? (Points: 5) first-in, first-out last-in, first-out specific unit cost weighted-average of only the unique items (TCO4) Which inventory method produces the highest net income in a time of rising costs? (Points: 5) FIFO. Average Cost. LIFO. KIFO. 2. (TCO6) All expenditures to repair and renovate an existing building for its intended use are charged to: (Points: 5) land. land improvements. land improvements expense. building. 3. (TCO6) Which of the following statements is false? (Points: 5) depreciation is a process of subjective valuation. depreciation is a non-cash expense. accumulated depreciation represents a growing amount of cash to be used to replace the existing asset. accumulated depreciation is that portion of a plant asset?s cost that has been recorded previously as an expense. 4. (TCO6) On January 10, 2006, Maxim Corporation acquired equipment for $124,000. The estimated life of the equipment is 3 years or 24,000 hours. The estimated residual value is $10,000. What is the balance of Accumulated Depreciation on December 31, 2007, if Baldwin Corporation uses the asset 5,500 hours in 2006 and 4,500 hours in 2007? (Points: 5) $76,000 $61,218 $52,083 $47,500 5. (TCO6) Valtrex Inc. sells a major plant asset. (Points: 5) depreciation expense should be recorded through the date of sale. the book value of the asset should be credited to the asset account. no gain should be recognized if depreciation expense was taken on the asset before the asset was sold. a loss should be recognized, but not a gain, if depreciation expense was taken on the asset before the asset was sold. 6. (TCO6) Current liabilities fall into two categories which are referred to as: (Points: 5) liabilities of a known amount and estimated liabilities. contingent liabilities and noncontingent liabilities. contingent liabilities and contra-liabilities. unearned liabilities and accrued liabilities. 7. (TCO7) In a corporation, the two-basic sources of stockholders' equity are: (Points: 5) donated capital and contributed capital. par value and no-par value stock. preferred stock and common stock. paid-in capital and retained earnings. 8. (TCO7) When 100 shares of $10 par value Common Stock are sold at $53 per share, Paid-in Capital in Excess of Par value?Common will: (Points: 5) increase $1,000. increase $4,300. increase $5,300. not be affected. 9. (TCO7) The number of shares of treasury stock plus the number of shares outstanding equals the number of shares: (Points: 5) authorized that have not been issued. authorized. issued. issued that have not been reacquired by the company. 10. (TCO2) Consider the following transactions: I. Owners invested $8,000 cash to begin the business II. Provided services for cash, $6,000 III. Provided services on account, $4,000 IV. Paid cash for expenses, $7,500 How much cash does the business have? (Points: 5) $2,500 $4,500 $6,500 $10,500 (TCO5) Your friend, Jacob, has opened a movie theater. Jacob states that he does not have time to develop and implement a system of internal controls. a. Provide Jacob with the objectives of a system of internal control. b. Explain to Jacob why he should develop a system of internal control. (Points: 10) 2. (TCO6) Credit Company incurred the following costs in acquiring plant assets: purchased land for a $50,000 down payment and signed a $100,000 note payable for the balance delinquent property tax of $2,500 and legal fees of $1,500 $5,000 to remove an unwanted building architect fee of $2,000 for the design of a building constructed an office building at a cost of $500,000 interest cost on construction loan for the building, $20,000 $7,500 for fencing, $4,000 for landscaping, and $5,000 for lighting Determine the cost of the land, land improvements, and building. (Points: 20) 3. (TCO2) List the steps in the Accounting Cycle. (Points: 20) (TCO6) Block Company issued a $20,000, 10-year Bond on 7/1/2008, when the Market Interest Rate was 6.5%. Assume that the accounting year of Block Company ends on December 31. Journalize the following transactions. a. Issuance of the Bond on 7/1/2008 b. Accrual of the Interest Expense on 12/31/2008 c. Payment of Interest on 1/1/2009 d. Payment of the Bond at Maturity (Points: 20) 2. (TCO7) The Cosmo Company was started by issuing 800 shares of $10 par value stock at an average market price of $20 per share. The company repurchased 100 shares at a market price of $15 per share. The company later sold 50 shares at a market price of $25 per share. At the end of the first year of operations the company has $2,600 of retained earnings in addition to its contributed capital. Prepare the equity section of the balance sheet for Cosmo Company. (Points: 20) 3. (TCO1) The following information has been obtained from the accounting records of Sandy Shores Enterprises. Prepare the operating section of the statement of cash flows for Sandy Shores Enterprises for the year ended December 31, 2007, using the indirect method. Principal payments on long-term debt $50,000 Increase in accounts payable 24,300 Acquisition of equipment by issuing long-term note payable 70,000 Amortization expense 18,700 Proceeds from sale of investments, not including a $5,100 gain 49,100 Increase in accounts receivable 8,700 Cash payments to purchase plant assets 62,000 Decrease in accrued liabilities 60,300 Payment of cash dividends 64,500 Proceeds from sale of plant assets, not including a $7,400 loss 22,600 Net income 174,100 Depreciation expense 35,500 Proceeds from issuance of common stock 300,000 Increase in inventory 71,400 Bonds payable converted into common stock 130,000 Decrease in prepaid expenses 12,800 Cash balance: December 31, 2006 52,500 Cash balance: December 31, 2007 373,000 (Points: 20) 4. (TCO 1) The income statement for the OverUnder Company for the year ended December 31, 2007, appears below. Sales 670,000 Costs of goods sold 390,000 Gross profit 280,000 Expenses 180,000* Net income $100,000 *Includes $25,000 of interest expense and $20,000 of income tax expense. Additional information: a. Common stock outstanding on January 1, 2007, was 50,000 shares. On July 1, 2007, 10,000 more shares were issued. b. The market price of OverUnder's stock was $18 at the end of 2007. c. Cash dividends of $35,000 were paid, $5,000 of which were paid to preferred stockholders. Part 1: Compute the following ratios for 2007 (show your work): a. Earnings per share. b. Price-earnings. c. Times interest earned. Part 2: Please explain the meaning of these ratios and the results you have calculated. (Points: 20) (TCO6) Block Company issued a $20,000, 10-year Bond on 7/1/2008, when the Market Interest Rate was 6.5%. Assume that the accounting year of Block Company ends on December 31. Journalize the following transactions. a. Issuance of the Bond on 7/1/2008 b. Accrual of the Interest Expense on 12/31/2008 c. Payment of Interest on 1/1/2009 d. Payment of the Bond at Maturity (Points: 20) 2. (TCO7) The Cosmo Company was started by issuing 800 shares of $10 par value stock at an average market price of $20 per share. The company repurchased 100 shares at a market price of $15 per share. The company later sold 50 shares at a market price of $25 per share. At the end of the first year of operations the company has $2,600 of retained earnings in addition to its contributed capital. Prepare the equity section of the balance sheet for Cosmo Company. (Points: 20) 3. (TCO1) The following information has been obtained from the accounting records of Sandy Shores Enterprises. Prepare the operating section of the statement of cash flows for Sandy Shores Enterprises for the year ended December 31, 2007, using the indirect method. Principal payments on long-term debt $50,000 Increase in accounts payable 24,300 Acquisition of equipment by issuing long-term note payable 70,000 Amortization expense 18,700 Proceeds from sale of investments, not including a $5,100 gain 49,100 Increase in accounts receivable 8,700 Cash payments to purchase plant assets 62,000 Decrease in accrued liabilities 60,300 Payment of cash dividends 64,500 Proceeds from sale of plant assets, not including a $7,400 loss 22,600 Net income 174,100 Depreciation expense 35,500 Proceeds from issuance of common stock 300,000 Increase in inventory 71,400 Bonds payable converted into common stock 130,000 Decrease in prepaid expenses 12,800 Cash balance: December 31, 2006 52,500 Cash balance: December 31, 2007 373,000 (Points: 20) 4. (TCO 1) The income statement for the OverUnder Company for the year ended December 31, 2007, appears below. Sales 670,000 Costs of goods sold 390,000 Gross profit 280,000 Expenses 180,000* Net income $100,000 *Includes $25,000 of interest expense and $20,000 of income tax expense. Additional information: a. Common stock outstanding on January 1, 2007, was 50,000 shares. On July 1, 2007, 10,000 more shares were issued. b. The market price of OverUnder's stock was $18 at the end of 2007. c. Cash dividends of $35,000 were paid, $5,000 of which were paid to preferred stockholders. Part 1: Compute the following ratios for 2007 (show your work): a. Earnings per share. b. Price-earnings. c. Times interest earned. Part 2: Please explain the meaning of these ratios and the results you have calculated. (Points: 20)
Question 5
Use the spreadsheet provided to complete this assignment. Kite Corporation, a merchandiser, recently completed its calendar-year 2011 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheets and income statement follow. Additional Information on Year 2011 Transactions: 1. The loss on the cash sale of equipment was $2,100 (details in b). 2. Sold equipment costing $51,000, with accumulated depreciation of $20,850, for $28,050 cash. 3. Purchased equipment costing $113,250 by paying $38,250 cash and signing a long-term note payable for the balance. 4. Borrowed $6,000 cash by signing a short-term note payable. 5. Paid $45,000 cash to reduce the long-term notes payable. 6. Issued 3,000 shares of common stock for $11 cash per share. 7. Declared and paid cash dividends of $63,000. Required: 1. Use the attached Excel spreadsheet to prepare a complete statement of cash flows; report its operating activities using the indirect method. 2. Disclose any noncash investing and financing activities in a note. I have attached the Kite company The company's balance sheets and income statement in the document named kite company
