Question 1
Below is the income statement and balance sheet of Closely Held Corporation. From this information prepare a statement of cash flows for the year ended September 30, 2005. Income Statement for year ended September 30, (in thousands) 2004 2005 Revenues $500,000 $512,000 Cost of Sales (395,000) (404,480) Gross Margin 105,000 107,520 Selling and Administrative (60,000) (61,440) Income before interest and taxes 45,000 46,080 Interest expense (9,900) (12,320) Income before income taxes 35,100 33,760 Income tax (12,812) (12,322) Net income $ 22,289 $ 21,438 Balance Sheet as of September 30, (in thousands) 2004 2005 Change Assets Current Assets Cash and equivalents $ 10,000 $ 10,240 $ 240 Accounts receivable 40,000 48,640 8,640 Inventories 39,500 56,627 17,127 Prepaid expenses 10,000 11,000 1,000 Total Current Assets 99,500 126,507 27,007 Property, plant, and equipment 390,000 411,000 21,000 Accumulated depreciation (233,000) (250,000) (17,000) P, P & E net 157,000 161,000 4,000 Other Assets, net amortization 27,000 26,000 (1,000) Total Assets $283,500 $313,507 $ 30,007 Liabilities and Shareholders? Equity Current Liabilities Current portion of long-term debt $ 12,000 $ 13,000 $ 1,000 Notes payable 30,000 31,000 1,000 Accounts payable 39,500 42,450 2,950 Accrued liabilities 21,569 18,000 (3,569) Income taxes payable 8,900 9,500 600 Total Current Liabilities 111,969 113,950 1,981 Long-term debt 87,000 99,000 12,000 Non-current deferred income tax 10,000 9,070 (30) Other non-current liabilities 4,340 5,000 660 Shareholders? Equity Common stock ? Class A 3,000 3,500 500 Capital in excess of par 21,000 26,000 5,000 Retained earnings 46,191 56,087 9,896 Total Shareholders? Equity 70,191 85,587 15,396 Total Liabilities and Equity $283,500 $313,507 $ 30,007
Question 2
"Jefferson County General Fund began the year 2012 with the following account balances: Cash Debit 132348 Taxes Recievable Debit 47220 Allowance for uncollectible taxes Credit 500 Supplies Debit 660 Budgetary fund balance reserve for encumbrances Credit 4800 deferred Property taxes credit 22000 Wages Payable credit 970 Fund Balance Credit 151958 Totals 180228 180228 during 2012 Jefferson experiaenced the following transactions: 1. The budget was passed by the county commission, providing estimated revenues of 250000 and appropriations of 180000 and estimated other financing uses of 40000. classify expenditures in the general fund as either general government or capital outlay. make entries directly to these and the individual revenue accounts; do not use subsidiary ledgers. 2. The encumbrances outstanding at Dec 31 2011 were reestablished. 3. The deferred revenue at Dec 31 2011 is recognized as revenue in the current period. 4. Property Taxes in the amount of 260000 were levied by the county. It was estimated 0.5% will be uncollectible. 5. Property tax collections totaled 247000. Accounts totaling 950 were written off as uncollectible. 6. Encumbrances were issued for supplies in the amount of 36000 7. supplies in the amount of 39800 were received. Jefferson county records supplies as an asset when aquired . The related encumbrances for these items totaled 40000 and included the 4800 encumbered last year. The county paid 35650 on accounts payable during the year. 8. the county contracted to have alarm systems (capital assets) installed in the administration building at a cost of 46600. The systems were installed and the amount was paid. 9. Paid wages totaling 131970 including the amount payable at the end of 2011.(there were for general government operations.) 10. Paid other general government operating items of 7600. 11. The general fund transferred 38500 to the debt service fund in anticipation of bond interest and principle payments. 12. Wages earned but unpaid at the end of the year amounted to 2200 13. supplies of 250 were on hand at the end of the year (Supplies are used for general government operations. 14. A review of property taxes received indicates that 17500 of the outstanding balances would likely be collected more than 60 days after year-end and should be deferred. Required use the attached Excel template. A seperate tab is provided in Excel for each of these steps: a. Prepare journal entries to record the information described in the items 1 to 14. b. Post these entries to T-Accounts c. Prepare closing journal entries; psot to the T-Accounts prov ided. classify fund balances assuming there are no restricted or committed net resources and the only assigned net resources are the outstanding encumbrances. d. Prepare a statement of Revenues, Expenditures and Changes in Fund Balance for the General fund for the year ending 2012. Use Excel forumulas to calculate the cells shaded in blue. e. Prepare a Balance sheet for eht general fund as of Dec 31 2012. Use Excel formula to calculate the cells shaded in blue. ",any help would be appreciated even it just verifying that what i have is correct. If the excel docs are too much then just the journal entries for the 1-14... would be appreciated.
Question 3
(SCF?Direct and Indirect Methods from Comparative Financial Statements) Chapman Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative statement of financial position and income statement for Chapman as of May 31, 2010, are shown on the next page. The company is preparing its statement of cash flows. Chapman Company Comparative Statement of Financial Position As of May 31 2010 2009 Current assets Cash $ 28,250 $ 20,000 Accounts receivable 75,000 58,000 Merchandise inventory 220,000 250,000 Prepaid expenses 9,000 7,000 Total current assets 332,250 335,000 Plant assets Plant assets 600,000 502,000 Less: Accumulated depreciation 150,000 125,000 Net plant assets 450,000 377,000 Total assets $782,250 $712,000 Current liabilities Accounts payable $123,000 $115,000 Salaries payable 47,250 72,000 Interest payable 27,000 25,000 Total current liabilities 197,250 212,000 Long-term debt Bonds payable 70,000 100,000 Total liabilities 267,250 312,000 Shareholders' equity Common stock, $10 par 370,000 280,000 Retained earnings 145,000 120,000 Total shareholders' equity 515,000 400,000 Total liabilities and shareholders' equity $782,250 $712,000 Chapman Company Income Statement For the Year Ended May 31, 2010 Sales $1,255,250 Cost of merchandise sold 722,000 Gross profit 533,250 Expenses Salary expense 252,100 Interest expense 75,000 Other expenses 8,150 Depreciation expense 25,000 Total expenses 360,250 Operating income 173,000 Income tax expense 43,000 Net income $ 130,000 The following is additional information concerning Chapman's transactions during the year ended May 31, 2010. 1. All sales during the year were made on account. 2. All merchandise was purchased on account, comprising the total accounts payable account. 3. Plant assets costing $98,000 were purchased by paying $28,000 in cash and issuing 7,000 shares of stock. 4. The ?other expenses? are related to prepaid items. 5. All income taxes incurred during the year were paid during the year. 6. In order to supplement its cash, Chapman issued 2,000 shares of common stock at par value. 7. There were no penalties assessed for the retirement of bonds. 8. Cash dividends of $105,000 were declared and paid at the end of the fiscal year. Instructions (a) Compare and contrast the direct method and the indirect method for reporting cash flows from operating activities. (b) Prepare a statement of cash flows for Chapman Company for the year ended May 31, 2010, using the direct method. Be sure to support the statement with appropriate calculations. (A reconciliation of net income to net cash provided is not required.) (c) Using the indirect method, calculate only the net cash flow from operating activities for Chapman Company for the year ended May 31, 2010.
Question 4
ACCT555 - Course Project Smackey Dog Foods Inc.?Scenario Summary Smackey Dog Foods Inc. started in the kitchen of Sarah, Kim, and Jillian?s family home in the suburbs of Chicago. The three sisters initially bought the ingredients for their natural dog food recipes from the local grocery store. They used their dogs and the neighborhood dogs as their taste testers. Their dog food products were so good, the local kennels and veterinary offices were glad to distribute the sisters' products to their customers. Local demand increased significantly. Local pet stores and small grocery stores discovered the products and became distributors. The sisters moved the expanding business into a larger facility and hired a few more workers. Although their competitors? sales were flat or declining, Smackey Dog Food Inc.?s sales were on a vertical climb! Sales were so good last year that the sisters opened a boutique division named Best Boy Gourmet, specializing in freshly manufactured, one-serving packages meant for consumption no later than 3 days after production. They sell this product at three times the cost of their other products and by special order only through their new website. Demand is high, but waste has been an issue. Sarah is the president and general manager of the operation. Sarah has been very proactive in growing the business. She has met with her banker to discuss expanding the facilities and equipment with another $150,000 loan. Their first loan for $150,000 was secured by the industrial-size food production equipment purchased with the loan. The banker now demands an audit of the corporate financial statements before releasing another loan to the company. Sarah has offered to place the corporate account receivables up as collateral to secure the second loan. Based on revenue projections by her sister Jillian?s sales team, Sarah believes that the company will not have trouble paying down the loan in a short period of time. Kim manages the production operations. She oversees the inventory, production, and shipment of dog food products. The Best Boy Gourmet line has taken almost all of her attention lately. The winter holidays are approaching, and sales demand based on forecasts from the sales force are higher than ever. Attaining fresh, raw ingredients is more difficult in the winter months. If any of the fresh ingredients are delayed, production comes to a standstill. There has been significant inventory waste as a result. Kim?s assistant, Henry, monitors the production and shipment of Smackey Dog Food?s regular line of product. Henry takes pride in his work and is involved in every facet of the operation. With only one other warehouse employee to help, Henry personally is involved in preparing and approving all inventory records. Henry ensures that very little finished inventory sits in the warehouse. However, the shipping dock always seems to be full of returned dog food that should be restocked. When Kim asks him about it, Henry laughs and tells her that "first in, first out" applies to dog food returns as well. Kim smiles and just accepts that answer. Jillian is not very good at understanding accounting. The sisters placed Jillian in charge of sales. She manages a sales team of 12 salesmen in Illinois, Indiana, and Wisconsin. Her fear of flying and poor driving skills limit her ability to get around to the areas outside of Chicago. As a result, she has placed a lot of faith in her sales team. The sales team complained last year that they did not like waiting for their commissions until after bookkeeping calculated the actual revenues. In order to keep their spirits fired up, Jillian has her sales people project what their sales will be in the upcoming quarter, and she pays commissions in advance on those projections. The sales team loves her, and Jillian loves their approval. Jillian has noticed that the projections typically are off by 11% on average. The employees of Smackey Dog Food Inc. all own dogs. It was a hiring requirement on the job application. One employee was fired when it was discovered she never owned a dog when she was hired. A lawsuit is pending by the fired employee. At this time, the receivables represent 29% of the corporate assets. The Chicago retail chain Pup Stores Co. is Smackey Dog Food?s largest buyer. It alone represents 31% of overall sales and usually pays within 30 days. However, Pup Stores is facing a major lawsuit from an animal rights group. The legal fees are eating into the company's cash reserves, and it is facing some store closures. The accounts receivable aging indicates that 38% of the receivables are 30 days or less. Twenty-two percent are 31?60 days. Twenty-one percent of the receivables are 61?90 days old. Ten percent are 90?120 days. The remaining receivables are older than 120 days. Sarah has not written off any of the receivables, nor will she. Sales are projected to steadily grow at 16% next year if the company does not expand its facilities. With the expansion, sales are projected to rise 26%, with the most significant jump in the last quarter after expansion is completed and holiday sales pick up. Your Role You and your firm, Keller CPAs, have never audited a dog food manufacturer. Although it is late in the year to be accepting a new calendar-year-end audit, you need the work and have the time to devote to the audit before your 2-week ski vacation in February. You begin the audit process just prior to year-end by sending your audit manager, Pete, and two audit staffers, Ben and Maureen, out to the client. They spend time assessing the client and planning the audit. During the first month of field work after year-end, Ben and Maureen note that the dog food bags piled high on the docks are marked ?Returned.? One employee is seen throwing bags of the premium Best Boy Gourmet dog food into the dumpster in the morning and pulling it out and throwing it into Henry?s car during the employee lunch hour. Pete?s new best friend, Alan, was married to Smackey Dog Food Inc.?s owner, Kim, 4 years ago. Alan is also good friends with the banker from whom Sarah is seeking the loan. Pete is unaware of the relationship. Pete has talked about some of the details of the audit to Alan over a few beers. Required : During our course, each of you will prepare one short (five to seven pages, double-spaced) paper based on the Smackey Dog Food Inc. case facts above. The purpose of the project is to move you beyond the black letter into the actual practical application of legal principles in real-life situations. The project case is due at any point before the end of Week 7. It serves to highlight the importance of audit opinions and reports. This project gives you an opportunity to conduct certain audit procedures and determine the course of action regarding the audit. Note : You are being graded on analyzing issues you identify in the project case, in addition to responding to the questions listed in the YD_Activity (see link below) Use the YD_Activity document to answer the questions related to this scenario. Although this project is introduced in Week 1, it will not be due until Week 7, so you will be able to work on this throughout the course.
Question 5
Please answer the following questions. The entire answer is limited to four pages. Answers should be well-organized and grammatically correct. 1. Choose a brand that you think is weak in the minds of customers. What is the brand? Who is the target market? Why do you think this is a weak brand? How would you attempt to build (or rebuild) this brand? 2. You will undoubtedly be asked to develop a social media strategy once you get established in a marketing career path. Choose a retailer who desperately needs help with their social media strategy. Describe the product assortment/target market. What is wrong with their current approach? Clearly state the primary objectives underlying your recommended social media strategy. Discuss and justify the components of the social media strategy. How will you evaluate the effectiveness of this strategy in achieving these objectives? 3. A large part of this course has been focused on the Marketing Issues & Challenges team project. At the core of the MIC project is a detailed marketing plan. Now, you have been asked to provide guidance?specific guidance?to your new employer on how to approach marketing planning, what elements are necessary to include in a good marketing plan, and what cautions or concerns you have about developing and utilizing marketing plans. Please include some great sources of secondary information and provide your insight on when primary data collection is needed. Based on your experience with the MIC project, what is the one biggest obstacle to overcome when developing a workable marketing plan? 4. Marketing managers do a lot: develop market strategies and plans; capture marketing insights; connect with customers; build strong brands; shape market offering; deliver value; communicate value; create long-term growth, etc. Please choose two of these tasks. Provide a specific example for each of these two tasks that demonstrate these tasks being performed effectively; i.e., ?best practices.? Justify why these are great example. [This is not necessary-but, if it helps to make your points, include documentation; e.g., reference to an article, and advertisement, the website URL, etc.] 5. Briefly explain how concepts (e.g., customer satisfaction and retention) and marketing metrics (e.g., customer lifetime value); will help you in your educational career, professional career and /or life?
