Question 1
Deliverable Length: Word document of 700?1,000 words with attached Excel spreadsheet showing calculations Library Research Assignment Research a publicly held company of your choice, and access the company's Web page on the Internet to read its most recent annual report. The annual report is typically found in an "Investor Relations" or "Company Information" section within the company's Web site. Using the company's financial statements, perform a complete 2-year financial statement analysis addressing liquidity, efficiency, debt, profitability, and market measures as well as a common-size income statement and balance sheet along with a practical narrative. This analysis should not only include the calculation of the required ratios, but an assessment of the firm?s health in each area and a summary of the findings with regards to the overall health of the firm. All related findings, conclusions, and recommendations should be supported with sound financial analysis principles and be properly sourced. Liquidity Measures Current ratio [current assets / current liabilities] Quick ratio-acid test [(current assets ? inventory) / current liabilities] Net working capital to total assets [net working capital / total assets] Efficiency Measures Collection period [accounts receivable / average daily sales] Inventory turnover [cost of goods sold / ending inventory] Fixed asset turnover [sales / net fixed assets] Debt (Leverage) Measures Debt-to-asset ratio [total liabilities / total assets] Debt-to-equity ratio [total liabilities / total stockholder equity] Times-interest-earned (TIE) ratio [EBIT / interest] Profitability Measures Gross profit margin [gross profit / sales] Operating profit margin [EBIT / sales] Net profit margin [net income / sales] Return on assets (ROA) [net income / total assets] Return on equity (ROE) [net income / total stockholder equity] Market-Based Measures Earnings per share (EPS) [earnings available to common stockholders / common shares outstanding] Price-to-earnings ratio (P/E) [stock price / earnings per share] Market to book [market value of common stock / total stockholder equity] Please submit your assignment.
Question 2
1. On December 31, 2013, Gifts Galore, Inc. appropriately changed its inventory valuation method from weighted-average cost to FIFO method for financial statement and income tax purposes. The change will result in a $3,600,000 increase in the beginning inventory at January 1, 2013. Assume a 35% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is (Points : 5) a) $0. b) $1,260,000. c) $3,600,000. d) $2,340,000.XXXXXX 2. As of January 1, 2011, Survival Industries, Inc. purchased a boat at a cost of $400,000. When purchased, the company was using the double-declining depreciation method. Key info on the asset at time of purchase is the following. Estimated useful life is 8 years. Residual Value is $0. At the beginning of 2014, the CFO decided to change to straight-line depreciation method. Compute the depreciation expense for 2014. (Points : 5) a) $50,000 b) $80,750XXXXXX c) $33,750 d) $16,875 3. (TCO E) Mystical Corporation found the following errors in their year-end financial statements. As of Dec. 2012 As of Dec. 2013 Ending Inventory $32,000 understated $46,000 overstated Depreciation Exp. $7,000 understated On December 31, 2013, a fully depreciated machine was sold for $35,000 but the sale was not recorded until January 15, 2014 when the cash was received. In 2012, a three-year insurance premium was prepaid for $45,000 of which the entire amount was expensed in the first year. There were no other errors or corrections. Ignore any tax considerations. What is the total net effect of errors on Mystical's 2013 net income? (Points : 5) a) Retained earnings understated by $29,000 b) Retained earnings understated by $4,000 c) Retained earnings understated by $-3,000XXXXXX d) Retained earnings overstated by $18,000 4. (The four types of accounting changes, including error correction, are I. change in accounting principle; II. change in accounting estimate; III. change in reporting entity; and IV. error correction. Required: The following are a series of situations. Indicate the type of change. 1 Change from presenting nonconsolidated to consolidated financial statements 2 Change in expected recovery of an account receivable 3 Change due to charging a new asset directly to an expense account 4 Change from expensing to capitalizing certain costs, due to a change in periods benefited 5 Change in both estimate and acceptable accounting principles 6 Change from FIFO to LIFO inventory procedures 7 Change due to failure to recognize an accrued (uncollected) revenue 8 Change in amortization period for an intangible asset 9 Change from straight-line to sum-of-the-years'-digits method of depreciation 10 Changing the companies included in combined financial statements 11 Change in the loss rate on warranty costs 12 Change due to failure to recognize and accrue income 13 Change in residual value of a depreciable plant asset 14 Change in life of a depreciable plant asset 15 Change due to understatement of inventory (Points : 15) 1. change in reporting entity 2 Change in Accounting estimate 3. Error correction 4. Change in accounting estimate8. 5. Change in accounting estimate 6. Change in accounting principle 7. Error correction 8. Change in accounting estimate 9. Change in accounting estimate 10. Change in reporting entity 11. Change in the accounting estimate 12. Error Correction 13. Change in accounting estimate 14 Change in accounting estimate 15 Error correction
Question 3
Question Details John Martin (social security number 123-45-6783) and Stan Mitchell (social security number 123-45-6784) are 55% and 45% owners of Ram, Inc. (12-3456785), a small textile manufacturing company located at 1011 Wright Avenue, Kannapolis, NC 28083) The company's first S election was made January 1, 1982. The following information was taken from the income statement for 2008. Other income (active) 380 Interest Income (taxable) 267 Gross sales 1,376,214 Beginning inventory 7,607 Direct labor 303,102 Direct materials purchased 278,143 Direct other costs 149,356 Ending inventory 13,467 Taxes 39,235 Contribution to United fund 445 Contribution to Senator Browns Campaign 5,000 Fines on illegal activities 34 Life insurance premiums (the Corporation is beneficiary) 98 Compensation to shareholder Officers (proportionate to Ownership) 34,934 Salaries and wages 62,103 Interest expenses 17,222 Repairs 16,106 Depreciation 16,154 Advertising 3,246 Pension plan contributors 6,000 Employee benefit programs 2,875 Other deductions 63,784 Jan 1,2008 Dec 31, 2008 Cash 47,840 ? AR 93,100 153,136 Inventories 7,607 13,467 Prepaid expenses 10,333 7,582 Loans to shareholders 313 727 Buildings and trucks 138,203 244,348 Accumulated depreciation (84,235) ? Land 1,809 16,513 Life insurance 11,566 18,344 Total assets 226,536 414,970 Jan 1,2008 Dec 31,2008 AP 52,404 82,963 Notes payable (less than 1 year) 5,122 8,989 Loans from shareholders 155,751 191,967 Notes payable (more than 1 year) 21,821 33,835 Loan on life insurance 5,312 16,206 Capital stock 1,003 1,003 Paid-in capital 9,559 9,559 Retained earnings (8,314) ? Accumulated adjustments account 0 ? Other adjustments account 0 ? Treasury stock (16,122) (16,122) Total liabilities and capital 226,536 414,970 Ram's accounting firm provides the following additional information. Distributions to shareholders 290,000 AMT depreciation adjustment (1,075) AMT preference, interest on private activity bonds 11,070 Using the above information, prepare a complete form 1120S and a Schedule K-1 for John Martin (596 Lane Street, Kannapolis, NC 28083) If any information is missing, make realistic assumptions and list them. find the missing number in the comparative balance sheet . Using H&R Block TaxCut Book federal taxation 2010page E- 13 and 14,The professor gave us check figures your answers match his except he gave us a check figure for Schedule M-1 Line 4 of $390,016. Nothing was recorded on your calculations.,The lastest is Wednesday 10/12/2011
Question 4
I have done second 9-9 hoping it's right... need to be on this temple Problem 9-1 and 9-9 P9-1 (Various Inventory Issues) The following independent situations relate to inventory accounting. 1 Jag Co. purchased goods with a list price of $150,000, subject to trade discounts of 20% and 10% with no cash discounts allowable. How much should Jag Co. record as the cost of these goods? 2 Francis Company's inventory of $1,100,000 at December 31, 2008, was based on a physical count of goods priced at cost and before any year-end adjustments relating to the following items. a. Goods shipped f.o.b. shipping point on December 24, 2008, from a vendor at an invoice cost of $69,000 to Francis Company were received on January 4, 2009. b. The physical count included $29,000 of goods billed to Sakic Corp. f.o.b. shipping point on December 31, 2008. The carrier picked up these goods on January 3, 2009. What amount should Francis report as inventory on its balance sheet? 3 Mark Messier Corp. had 1,500 units of part M.O. on hand May 1, 2008, costing $21 each. Purchases of part M.O. during May were as follows. A physical count on May 31, 2008, shows 2,100 units of part M.O. on hand. Using the FIFO method, what is the cost of part M.O. inventory at May 31, 2008? Using the LIFO method, what is the inventory cost? Using the average-cost method, what is the inventory cost? 4 Forsberg Company adopted the dollar-value LIFO method on January 1, 2008 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO. 12/31/2009 256,000 286,720 112 Using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2009? 5 Eric Lindros Inc., a retail store chain, had the following information in its general ledger for the year 2009. What is Lindros' inventoriable cost for 2009? (LO 3,4,7) Instructions Answer each of the questions about inventories and explain your answers. (Warfield 470-471) Warfield, Terry D.. Intermediate Accounting: Principles and Analysis, 2nd Edition. John Wiley & Sons, 11/2007. . P9-9 (Lower-of-Cost-or-Market) Grant Wood Company manufactures desks. Most of the company's desks are standard models and are sold on the basis of catalog prices. At December 31, 2008, the following finished desks appear in the company's inventory. The 2008 catalog was in effect through November 2008, and the 2009 catalog is effective as of December 1, 2008. All catalog prices are net of the usual discounts. Generally, the company attempts to obtain a 20% gross margin on selling price and has usually been successful in doing so. (LO 9) Instructions At what amount should each of the four desks appear in the company's December 31, 2008, inventory, assuming that the company has adopted a lower-of-FIFO-cost-or-market approach for valuation of inventories on an individual-item basis? (Warfield 474) Warfield, Terry D.. Intermediate Accounting: Principles and Analysis, 2nd Edition. John Wiley & Sons, 11/2007. Attachments Preview: cf_u05a2_Template.doc Download Attachment Inventory Issues Template PROBLEM 9-1 1. 2. 3. Because no date was associated with the units issued or sold, the periodic (rather than perpetual) inventory method must be assumed. FIFO... Inventory Issues Template PROBLEM 9-1 1. 2. 3. Because no date was associated with the units issued or sold, the periodic (rather than perpetual) inventory method must be assumed. FIFO inventory cost: LIFO inventory cost: Average-cost: Totals Ending inventory 1 Inventory Issues Template PROBLEM 9-1 (Continued) 4. Computation of price indexes: 12/31/08 12/31/09 Dollar-value LIFO inventory 12/31/08: Dollar-value LIFO inventory Dollar-value LIFO inventory 12/31/09: Dollar-value LIFO inventory 2 Inventory Issues Template PROBLEM 9-1 (Continued) 5. The inventoriable costs for 2009 are: Inventoriable cost............................................................................ Note: Freight-out is a selling expense. Interest on notes payable is a period expense. Neither is an inventoriable cost. PROBLEM 9-9 Lower of Replacement Designate Cost or Item Cost Cost Ceiling* Floor** d Market Market A 470 460 450 350 460 450 B 450 430 480 372 440 430 C 830 610 900 720 610 640 D 960 1000 1050 810 1000 960 According to lower cost approach, comparing cost and market, which is less has to be reported, so A B C D $ $ $ $ 450 430 640 960 3 Inventory Issues Template *Ceiling = 2009 catalog selling price less sales commissions and estimated other cost of disposal. **Floor = Ceiling less (20% X 2009 catalog selling price) 4 View Full Attachment Show more Problem 9-1 and 9-9.doc.docx Download Attachment Problem91and99 P91(VariousInventoryIssues)Thefollowingindependentsituationsrelatetoinventory accounting. 1 JagCo.purchasedgoodswithalistpriceof$150,000,subjecttotradediscountsof20%... Problem91and99 P91(VariousInventoryIssues)Thefollowingindependentsituationsrelatetoinventory accounting. 1 JagCo.purchasedgoodswithalistpriceof$150,000,subjecttotradediscountsof20% and10%withnocashdiscountsallowable.HowmuchshouldJagCo.recordasthecostof thesegoods? 2 FrancisCompany'sinventoryof$1,100,000atDecember31,2008,wasbasedona physicalcountofgoodspricedatcostandbeforeanyyearendadjustmentsrelatingtothe followingitems. a. Goodsshippedf.o.b.shippingpointonDecember24,2008,fromavendoratan invoicecostof$69,000toFrancisCompanywerereceivedonJanuary4,2009. b. Thephysicalcountincluded$29,000ofgoodsbilledtoSakicCorp.f.o.b. shippingpointonDecember31,2008.ThecarrierpickedupthesegoodsonJanuary3, 2009. WhatamountshouldFrancisreportasinventoryonitsbalancesheet? 3 MarkMessierCorp.had1,500unitsofpartM.O.onhandMay1,2008,costing$21each. PurchasesofpartM.O.duringMaywereasfollows. AphysicalcountonMay31,2008,shows2,100unitsofpartM.O.onhand.Usingthe FIFOmethod,whatisthecostofpartM.O.inventoryatMay31,2008?UsingtheLIFO method,whatistheinventorycost?Usingtheaveragecostmethod,whatistheinventory cost? 4 ForsbergCompanyadoptedthedollarvalueLIFOmethodonJanuary1,2008(using internalpriceindexesandmultiplepools).Thefollowingdataareavailableforinventory poolAforthe2yearsfollowingadoptionofLIFO. 12/31/2009256,000286,720112 UsingthedollarvalueLIFOmethod,atwhatamountshouldtheinventorybereportedat December31,2009? 5 EricLindrosInc.,aretailstorechain,hadthefollowinginformationinitsgeneralledger fortheyear2009. WhatisLindros'inventoriablecostfor2009? (LO3,4,7) Instructions Answereachofthequestionsaboutinventoriesandexplainyouranswers. (Warfield470471) Warfield,TerryD..IntermediateAccounting:PrinciplesandAnalysis,2ndEdition.JohnWiley &Sons,11/2007.. P99(LowerofCostorMarket)GrantWoodCompanymanufacturesdesks.Mostofthe company'sdesksarestandardmodelsandaresoldonthebasisofcatalogprices.At December31,2008,thefollowingfinisheddesksappearinthecompany'sinventory. The2008catalogwasineffectthroughNovember2008,andthe2009catalogiseffectiveas ofDecember1,2008.Allcatalogpricesarenetoftheusualdiscounts.Generally,the companyattemptstoobtaina20%grossmarginonsellingpriceandhasusuallybeen successfulindoingso. (LO9) Instructions Atwhatamountshouldeachofthefourdesksappearinthecompany'sDecember31,2008, inventory,assumingthatthecompanyhasadoptedalowerofFIFOcostormarketapproach forvaluationofinventoriesonanindividualitembasis? (Warfield474) Warfield,TerryD..IntermediateAccounting:PrinciplesandAnalysis,2ndEdition.JohnWiley &Sons,11/2007.. View Full Attachment Show more Additional Requirements Level of Detail: Show all work
Question 5
The objective of this project is to research and prepare a paper on a current issue involving casinos and gamming within the United States or Canada. The scope of the paper should follow an event or events that are of importance within this field. Some relevant topics that can be chosen are as follows: The development and impact of off shore or riverboat gaming. The current state and development of casinos on a particular American Indian reservation or reservations. The current economic climate and development in Las Vegas or Atlantic City. The growth of gaming in Mississippi. The personal economic and social costs of gaming. The growth of online gaming and its legal issues. Crime and gambling. Current issues within local or State gaming issues. The popularity of poker. The popularity of video gaming machines. The future of gaming employment. You may select one of these or one of your own topics in relation to casinos and gaming. Some other guidelines for this paper are as follows: Papers must be at least 10 and not more than 15 pages in length, 12 point font, double spaced, not including cover page and reference page. APA format and citations are required, as are a cover and reference page. Please include at least six solid references.
