Question 1
Case study for Accounting due tomorrow at 3pm can you take a look at this and help to complete the missing items,Hi, I don't see all of the missing parts of this there appears to be no evaluations in e it says not only tables but a written explination of this. for C,D and E c. A summary of each financial statement i. Take each statement and state the key parts in words. Tell a story from each of the financial statements. For example, for the income statement, the story starts like, ?Total Revenues in 2010 were $10 billion, while Cost of Goods Sold were $8 billion, leaving a gross profit margin of $2 billion, or 20 percent of total revenues?.After taking out interest and taxes from EBIT, the net income was $0.5 billion, or 5 percent of total revenues.? d. Ratio calculation (five major types of ratios, See Chapter 3) i. Organization this section based on the FIVE types of ratios listed in the text book. Calculate the ratios from the financial statements in part c above using Excel or your calculator and present them in a table. e. Comparison of ratios with industry averages (find industry averages online) i. Find industry financial ratios online (eg. Yahoo.com) and compare your corporation?s ratios to these industry ratios. ii. Present your results following the five types of ratios discussed in part d. iii. A table with both corporation and industry ratios is required. You must also compare the ratios in words. Do NOT just give me a table. Thank you,can you tell me when this will be reevaluated,Thank you,Around how long I am under a missed deadline, so I only have an extention for about 2 more hours. Can you tell me how long, because that is a big section not answered.
Question 2
ICM manufactures and sells metal shelving. It began operations on January 1, 2002. Costs incurred for 2002 are as follows (V stands for variable; F stands for fixed): Direct materials costs $140,000 V Direct manufacturing labour costs 30,000 V Plant energy costs 5,000 V Indirect manufacturing labour costs 10,000 V Indirect manufacturing labour costs 16,000 F Other indirect manufacturing costs 8,000 V Other indirect manufacturing costs 24,000 F Marketing, distribution, and customer ? service costs 122,850 V Marketing, distribution, and customer ? service costs 40,000 F Administrative costs 50,000 F Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution and customer-service costs are variable with respect to units sold. Inventory data are: Beginning Ending January 1, 2002 December 31, 2002 Direct materials 0 kg 2,000 kg Work in process 0 units 0 units Finished goods 0 units ? units Production in 2002 was 100,000 units. Two kilograms are used to make one unit of finished product. Revenues in 2002 were $436,800. The selling price per unit and the purchase price per kilogram of direct materials were stable throughout the year. The company?s ending inventory of finished goods is carried at the average unit manufacturing costs for 2002. Finished goods inventory at December 31, 2002 was $20,970. Required: (show your calculations) 1. Direct materials inventory, total cost, December 31, 2002. 2. Finished goods inventory, total units, December 31, 2002. 3. Selling price per unit, 2002. 4. Operating income, 2002.
Question 3
Nic Saybin Enterprises Accounting Department collects all pertinent monthly operating data. Selected data are presented below for the current month. From the data provided, please provide Saybin Enterprises Management with a flexible budget analysis to see how costs were controlled. Actual Costs Incurred Static Budget Activity level (in units) 754,009 746,500 Variable Costs: Indirect materials $328,897 $325,640 Utilities $174,332 $171,890 Fixed Costs: General and administrative $237,985 $244,908 Rent $135,500 $135,000 (TCO D) McMullen Co. manufactures automatic door openers. The company uses 15,000 electronic hinges per year as a component in the assembly of the openers. You have been engaged by McMullen to assist with an evaluation of whether the company should continue producing the hinges or purchase them from an outside vendor. The Accounting Department provided the following detail regarding the annual cost to produce electronic hinges: Direct materials $54,000 Direct labor 60,000 Variable manufacturing overhead 36,000 Fixed manufacturing overhead 90,000 Total costs $240,000 The Procurement Department provided the following supplier pricing: Supplier A price per hinge $11.00 Supplier B price per hinge $10.75 Supplier C price per hinge $10.50 The supplier pricing was obtained in response to a formal request for proposal (RFP). Procurement has determined these suppliers meet McMullen's technical specifications and quality requirements. If McMullen stops producing the part internally, 10% of the fixed manufacturing overhead would be eliminated. Required: Prepare a make-or-buy analysis showing the annual advantage or disadvantage of accepting an outside supplier's offer. (TCO E) Topple Company produces a single product. Operating data for the company and its absorption costing income statement for the last year are presented below: Units in beginning inventory 2,000 Units produced 9,000 Units sold 10,000 Sales $100,000 Less cost of goods sold: Beginning inventory 12,000 Add cost of goods manufactured 54,000 Goods available for sale 66,000 Less ending inventory 6,000 Cost of goods sold 60,000 Gross margin 40,000 Less selling and admin. expenses 28,000 Net operating income $12,000 Variable manufacturing costs are $4 per unit. Fixed factory overhead totals $18,000 for the year. This overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were $1 per unit sold. Required: Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements. TCO A) The following data (in thousands of dollars) have been taken from the accounting records of the Maroon Corporation for the just-completed year. Sales 1,200 Raw materials inventory, beginning 25 Raw materials inventory, ending 50 Purchases of raw materials 180 Direct labor 230 Manufacturing overhead 250 Administrative expenses 400 Selling expenses 200 Work-in-process inventory, beginning 150 Work-in-process inventory, ending 120 Finished goods inventory, beginning 100 Finished goods inventory, ending 110 Use the above data to prepare (in thousands of dollars) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year. In addition, what is the impact on the financial statements if the ending finished goods inventory is overstated or understated? Carter Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below. Work in process, beginning: Units in beginning work-in-process inventory 400 Materials costs $6,900 Conversion costs $2,500 Percentage complete for materials 80% Percentage complete for conversion 15% Units started into production during the month 6,000 Units transferred to the next department during the month 5,800 Materials costs added during the month $112,500 Conversion costs added during the month $210,300 Ending work in process: Units in ending work-in-process inventory 1,400 Percentage complete for materials 70% Percentage complete for conversion 40% Required: Calculate the equivalent units for materials (using the weighted-average method) for the month in the first processing department. (TCO G) (Ignore income taxes in this problem.) Five years ago, the City of Paranoya spent $30,000 to purchase a computerized radar system called W.A.S.T.E. (Watching Aliens Sent To Earth). Recently, a sales rep from W.A.S.T.E. Radar Company told the city manager about a new and improved radar system that can be purchased for $50,000. The rep also told the manager that the company would give the city $10,000 in trade on the old system. The new system will last 10 years. The old system will also last that long but only if a $4,000 upgrade is done in 5 years. The manager assembled the following information to use in the decision regarding which system is more desirable: Old System New System Cost of radar system $30,000 $50,000 Current salvage value $10,000 - Salvage value in 10 years $5,000 $8,000 Annual operating costs $34,000 $29,000 Upgrade required in 5 years $4,000 - Discount rate 14% 14% Required: (a) What is the City of Paranoya's net present value for the decision described above? Use the total cost approach. (b) Should the City of Paranoya purchase the new system or keep the old system? TCO B) Madlem, Inc., produces and sells a single product whose selling price is $240.00 per unit and whose variable expense is $86.40 per unit. The company's fixed expense is $720,384 per month. Required: Determine the monthly break-even in either unit or total dollar sales. Show your work!
Question 4
Use Bank of America (BA) 2012 annual report to answer the following questions: 1. What are the types of deposits that BA uses to obtain most of its funds? 2. What are the main uses of funds by BA? 3. Summarize any statements made by BA in its annual report about how recent or potential regulations will affect its performance. 4. Is BA attempting to or involved with offering securities services? If so, explain how? 5. Is BA attempting to or involved with offering insurance services? If so, explain how? 6. Assess BA?s balance sheet as well as any comments in its annual report about the gap between its rate-sensitive assets and its rate-sensitive liabilities. Does BA have a positive gap or a negative gap? 7. What methods does BA use to reduce its gap and therefore reduce its exposure to interest rate risk? 8. Summarize any statements made by BA in its annual report about how it attempts to limit its exposure to credit risk on the loans it provides. 9. What is BA?s interest income as a percentage of its total assets? 10. What is BA?s interest expenses as a percentage of its total assets? 11. What is BA?s net interest margin? 12. What is BA?s noninterest income as a percentage of its total assets? 13. What is BA?s noninterest expenses (excluding the addition to loan loss reserves) as a percentage of tis total assets? 14. What is BA?s addition to loan loss reserves as a percentage of its total assets? 15. What is BA?s return on assets? What is BA?s return on equity? 16. Identify BA?s income statement items that would be affected if interest rates rise in the next year, and explain how they would be affected. 17. Identify BA?s income statement items that would be affected if U.S. economic conditions deteriorate, and explain how they would be affected.
Question 5
I need all answers in 1hr and 30 minutes 1. Generally speaking, when ranking two mutually exclusive investments with different initial amounts, management should give first priority to the project: (Points : 2) That generates cash flows for the longer period of time. Whose net after-tax cash flows equal the initial investment outlay. That has the greater accounting rate of return (ARR). Whose cash flows vary the least. That has the greater profitability index (PI). 2. When the internal rate of return (IRR) method and the net present value (NPV) method do not yield the same recommendation for the same investment project, the technique normally selected is: (Points : 2) IRR, because all reinvestment of funds occurs at the rate of the cost of capital and because it takes into consideration the relative size of the initial investment. NPV, because it takes into consideration the relative size of the initial investment. IRR, because all reinvestment of funds occurs at the discount rate that will make the NPV of the project equal to zero. NPV, because all reinvestment of funds occurs at the discount rate that will make the NPV of the project equal to zero. 3. Which one of the following is most descriptive of strategic analysis? (Points : 2) Quantitative. Customer focus. Short-term focus. Individual product focus. Not linked to the firm's strategy. 4. The excess of the present value of future cash flows over the initial investment outlay for a project is the: (Points : 2) Internal rate of return (IRR) of the project. Modified internal rate of return (MIRR) on the project. Book (accounting) rate of return for the project. Net present value (NPV) of the project. Modified internal rate of return (MIRR) of the project. 5. The internal rate of return for an investment: (Points : 2) Frequently results in positive net present value on attractive projects. Generally coincides with the company's discount rate. Disregards discounted cash flows. On mutually exclusive projects may produce different project rankings than the net present value (NPV) method. Would tend to be reduced if a company used an accelerated method of depreciation for tax purposes rather than the straight-line (SL) method. 6. Which of the following is not one of the four general classes of real options? (Points : 2) Expansion option. Exercise option. Abandonment option. Investment-timing option (e.g., delay) 7. The value chain analysis used in connection with the make or buy decision often leads a firm to make use of: (Points : 2) Activity-based costing. Cost-volume profit analysis. Outsourcing activities. Relevant cost-based pricing. 8. The opportunity cost of making a component part in a factory with no excess capacity is the: (Points : 2) Variable manufacturing cost of the component. Fixed manufacturing cost of the component. Total manufacturing cost of the component. Cost of the production given up in order to manufacture the component. Net benefit foregone from the best alternative use of the capacity required. 9. The opportunity cost of making a component part in a factory with excess capacity for which there is no alternative use is: (Points : 2) The variable manufacturing cost of the component. The total manufacturing cost of the component. The total variable cost of the component. The fixed manufacturing cost of the component. Zero. 10. Which one of the following is the estimated rate (i.e., percentage) that makes the discounted present value of future cash flows equal to the initial investment? (Points : 2) Weighted-average cost of capital (WACC). Modified internal rate of return (MIRR). Book (accounting) rate of return. Internal rate of return (IRR). Accounting rate of return (ARR), after tax. 11. To make a special order decision, managers need critical information about all the following except: (Points : 2) Relevant costs. Prior period operating costs. Any opportunity costs. The strategic, competitive environment of the firm. 12. A decision bias is an inherent tendency of most decision makers that leads to incorrect decisions. An example of decision bias is: (Points : 2) Failure to consider all relevant costs. Failure to properly identify sunk costs as irrelevant. Failure to consider opportunity cost. Failure to adjust for the time value of money. 13. The capital budgeting method(s) that is (are) most likely to provide consistency between data for capital budgeting and data for subsequent performance evaluation is (are) the: (Points : 2) Payback period. Discounted cash flow (DCF) methods. Book (i.e., accounting) rate of return method. Discounted payback period. Cash-flow proxy method. 14. A truck, costing $25,000 and uninsured, was wrecked the very first day it was used. It can either be disposed of for $5,000 cash and be replaced with a similar truck costing $27,000, or rebuilt for $20,000 and be brand new as far as operating characteristics and looks are concerned. The best choice provides a net savings of: (Points : 2) $2,000. $5,000. $7,000. $12,000. 15. Which one of the following is correct for determining relevant costs? (Points : 2) Differential. Integrative. Long-term focus. Subjective. Opportunistic. 16. During the sales life cycle, which is an example of what happens during the introduction phase? (Points : 2) Sales and price decline, as do the number of competitors. Sales continue to increase but at a decreasing rate. The number of competitors and product variety decline. Sales increase rapidly along with an increase in product variety. Sales rise slowly as customers become aware of the new product or service. Product variety is limited. 17. If inventories in a business using a standard cost system are insignificant, the firm would be justified (in a practical sense) by disposing of variances each year: (Points : 2) As an adjustment to the finished goods inventory only. As an adjustment to cost of goods sold only. As adjustments to both inventory accounts and the cost of goods sold for the period. As a special item (gain or loss) on the income statement for the period. As an adjustment to the work-in-process (WIP) inventory only. 18. Which of the following is a common type of value engineering in which the performance and cost of each major function or feature of the product is examined? (Points : 2) Cost analysis. Variable design engineering. Cost-based value engineering. Functional analysis. 19. Which of the following is a theory of constraints (TOC) measure of product profitability that equals price less materials cost, including all purchased components and materials handling costs? (Points : 2) Takt time. Throughput margin. Profitability margin. Price analysis. 20. One important short-term goal for a company is to earn the projected operating income for the period. Attainment of this goal is measured by comparing the actual operating income to the: (Points : 2) Flexible-budget operating income. Prior period's operating income. The income reflected in the company's balanced scorecard. Master budget operating income. Industry average operating income. 21. The difference between the actual fixed overhead cost incurred during a period and the budgeted fixed overhead cost for the period is the: (Points : 2) Fixed overhead efficiency variance. Fixed overhead production-volume variance. Fixed overhead spending variance. Fixed overhead rate variance. Fixed overhead sales-volume variance. 22. _________________________ is an important first step in value engineering because it identifies critical consumer preferences that will define the product's desired functionality. (Points : 2) Consumer analysis Sales force analysis Design analysis R&D analysis Market place analysis 23. During the sales life cycle, which is an example of what happens during the maturity phase? (Points : 2) Sales and price decline, as do the number of competitors. Sales continue to increase but at a decreasing rate. The number of competitors and product variety decline. Sales increase rapidly along with an increase in product variety. Sales rise slowly as customers become aware of the new product or service. Product variety is limited. 24. Which of the following statements about the standard variable factory overhead application rate is true? (Points : 2) The rate is a function of the denominator volume chosen. The rate is used for cost-control, but not product-costing purposes. The rate is used for product-costing, but not cost-control purposes. The same rate is used for both product-costing and cost-control purposes. Generally speaking, the rate will be independent of the allocation base chosen to apply overhead. 25. In September, Larson Inc. sold 40,000 units of its only product for $240,000 and incurred a total cost of $225,000, of which $25,000 is fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U. The total number of budgeted units reflected in the master budget for September was: (Points : 2) 36,000 units. 40,000 units. 45,000 units. 48,000 units. 50,000 units. 26. Which of the following are computer-based databases that include comprehensive information about the firm's cost drivers? (Points : 2) Cost tables. Cost databases. Cost driver tables. Excel tables. 27. In a standard cost system, an unfavorable production-volume variance would result if: (Points : 2) There is an unfavorable labor efficiency variance. There is an unfavorable labor rate variance. Actual production is less than the "denominator volume." There is an unfavorable manufacturing overhead spending variance. Actual fixed overhead costs are greater than budgeted fixed overhead costs. 28. An organization subject to intense competitive pressures would most likely use: (Points : 2) Ideal standards for its operations. Real standards for its operations. Caution in even using standards. A mix of types of standards. 29. Concurrent engineering relies on an integrated approach, in which the engineering/design process takes place throughout the cost life cycle using cross-functional teams. Strategically, this concurrent approach should give a firm all of the following except: (Points : 2) Flexibility in refining its design. Ability to quickly incorporate customer suggestions. Cost savings because of time saved. More detailed analysis of product functionality. 30. An organization planned to use $82 of material per unit of output, but it actually used $80 per unit. During this period, the company planned to make 1,200 units, but actually produced only 1,000 units. The flexible budget amount for materials is: (Points : 2) $80,000. $82,000. $96,000. $98,400. 31. In management compensation, the use of the balanced scorecard achieves: (Points : 2) Fairness. Alignment of manager's incentives and the organization's strategy. The desired ethical environment. Revenue generation and cost control. A specific non-financial measurement. 32. The stock option form of bonus payments to managers usually: (Points : 2) Motivates well even in extended market downturns. Can lose some motivation because of the delay in reward. Focuses on the short-term. Is not consistent with shareholder interests. 33. Due in part to the failure of many banks in 2008, executive compensation is getting increased oversight by: (Points : 2) Audit committees of corporate boards Top management Compensation committees of corporate boards Banking regulators and corporate compensation committees Banking regulators such as the SEC 34. The value stream income statement can be compared to: (Points : 2) Value chain analysis. The contribution income statement. A streamlined production process. A streamlined accounting system. 35. There is a current tax for the manager when which of the following types of compensation is received? (Points : 2) Qualified stock options Nonqualified stock options Deferred bonus Current bonus 36. A strategic business unit (SBU) consists of a well-defined set of controllable operating activities over/about which the SBU manager is: (Points : 2) Knowledgeable. Responsible for strategy. Responsible for strategy and execution. Responsible for strategy, execution, and performance. 37. Bonus payment options include all of the following except: (Points : 2) Perks. Current bonus. Deferred bonus. Stock options. Performance shares. 38. Economic value added is calculated from: (Points : 2) Average total assets, current liabilities, net income, and the cost of capital. EVA net income and EVA invested capital. Net income, cost of capital, and net assets. Net income and the cost of capital. EVA net income, the cost of capital, and EVA invested capital. 39. The balanced scorecard measures the SBU's performance in all of the following areas except: (Points : 2) Learning and growth. Managerial performance. Customer satisfaction. Internal business processes. Accounting and tax compliance. 40. Table Inc. planned and manufactured 250,000 units of its single product in 2010, its first year of operations. Variable manufacturing costs were $30 per unit of production. Planned and actual fixed manufacturing costs were $500,000. Marketing and administrative costs (all fixed) were $300,000 in 2010. Table Inc. sold 200,000 units of product in 2010 at $50 per unit. Variable costing operating income for 2010 is calculated to be: (Points : 2) $1,000,000. $3,200,000. $3,300,000. $4,200,000. 41. Of most relevance in deciding how or which costs should be assigned to an SBU is the degree of: (Points : 2) Avoidability. Causality. Controllability. Reliability. 42. Compensation plans for high-level managers and executives are usually explained in the firm's: (Points : 2) Management Discussion and Analysis (MD&A). Income Statement. Notes to the Financial Statements. Proxy Statement. 43. Risk aversion by managers should be recognized when revising compensation plans because: (Points : 2) Compensation mix (salary, bonus) can influence a manager's risk aversion. Most companies want risk averse managers. Most companies want risk taking managers. It costs less to pay risk averse managers. 44. Which one of the following items is not a measure of a company's liquidity? (Points : 2) Accounts receivable turnover. Return on equity. Quick ratio. Cash flow ratio. Day's sales in inventory. 45. For production and support departments, a method of implementing cost centers that is output-oriented is the: (Points : 2) Budget slack method. Cost shifting approach. Outsourcing approach. Discretionary-cost method. Engineered-cost approach. 46. If fairness only is considered, unit managers prefer: (Points : 2) Not to be evaluated. A subjective measure. A single, objective measure. A firm-wide pool over a unit-based pool. A unit-based pool over a firm-wide pool. 47. There is a common concern today that executive compensation in the U. S. is: (Points : 2) Not adequately linked to strategic performance measures Ineffective as a performance incentive Not properly disclosed to the IRS Varies too greatly from industry to industry 48. There is a current tax deduction for the firm for which of the following types of compensation? (Points : 2) Qualified stock options. Nonqualified stock options. Deferred bonus. Current bonus. Performance shares. 49. An increase in the market price of a company's common stock will immediately affect its: (Points : 2) Stock return. Debt to equity ratio. Earnings per share. Economic value added. Return on common stockholders' equity. 50. Performance evaluation in most firms is applied at: (Points : 2) Many different levels from top management down to individual production and sales employees. All levels of production, but only top levels of sales. Top and mid-management levels only. Lower and mid-management levels only. The mid-management level only.
