Question 1
Can anyone assist with the following assignment. Following are the requirements and steps for the Week 3 assignment. 1 Complete the 2006% of sales calculations. 2005 % of sales has been calculated as an example. 2 Answer this question: why is the % of sales for sales 100%? We will now step through each assumption provided in the New Strategic Initiative Assumptions Memo (the original). For each assumption, please indicate which line items on the income statement and balance sheet would be directly impacted by the assumption. Line item reference numbers are provided in Column B of the historical statements. Assumption 1 has been completed as an example. Assumption Income Statement Line Item(s) directly impacted. Balance Sheet Line Item (s) directly impacted. 3 Assume inflation of 4% on expenses, not including depreciation and taxes. This is in addition to the IS 2,3.4,5,6,7,11 None This is in addition to the new initiative's costs.. 4 Assume the following regarding variables versus fixed-nature-of-income-statement operating expenses for the existing business: a. 80% of wage benefits is variable and 20% is fixed. b. 100% of fuel expenses, purchased transportation, and operating supplies is variable. c. 100% of operating taxes is fixed. d. 20% of insurance and claims is fixed; the balance is variable. e. Assume depreciation, even with new expenditures, is fixed as the retirement of written-off assets, equaling new equipment. 5 There will be new spending areas reflected on future budgets to reflect added satellite warehouse costs and space rental and costs of running the locations. a. In the first year, add $10 million of inflation, space rental, and operating costs at 25% of revenues from the new initiative. b. In the second year, add $10 million space rental, with inflation at the same variable percentage of sales. c. In the third year, add $7.5 million of the variable percentage of sales. 6 In marketing, budget accounts have been added for new incurred costs. We will continue our present promotion and launch a new program, with the assistance of our marketing partner, the ABC Marketing Agency. They will advise us on the type, frequency, and content of new messages. Assume 100% of the existing budget is fixed with respect to volume along with new expenses. We expect incremental expenses, with $5 million of inflation in the first three years. 7 Our existing sales force, comprised of four national account managers, will call on clients such as Wal-Mart?, Sears?, and Best Buy?. Existing expenses are assumed to be 100% fixed in relation to revenue. To tap into specialized markets, our strategy is aimed at adding four industry-specific managers, each with a salary base of $50,000 and 2% commission of generated revenues. 8 The human resources budget will not change substantially aside from added hiring, recruiting, training, and drug testing fees. Assume 10% of expenses is fixed; the balance is variable with volume. 9 Assume current assets and liabilities are variable. Expect an addition of $10 million to operating property, spent in the first year. Our payment to vendors, suppliers, and taxes will be in thirty-day terms. We expect all payments to be in sixty-day terms. 10 Assume revenue growth from our existing business will grow at 8% versus 10% in past years. Our new strategy, however, adds incremental consulting revenues of $3.5, $4.5, and $6.5 million in the first, second, and third years. New warehousing will add revenue of $10, $30, and $40 million in the first, second, and third years. All new revenue will be subject to commissions for industry-specific managers. 11 Using 2006 data, calculate the current ratio. 12 Using 2006 data, calculate the profit percentage 13 Using 2006 data, calculate the debt to asset ratio 14 Explain how EFN can be calculated using the income statement and balance sheet. 15 Complete the 2007 pro forma statements (income statement and balance sheet) using the following guidelines: Sales increase 10% from 2006. Use line items 5 and 9 to determine which expenses are variable (change with sales) and which are fixed. 16 Does Huffman need to borrow money? That would be your EFN calculation
Question 2
ACC115 ? 72L EXAM 3 CH 5&6 NAME: DATE: SCORE /100 Part 1: Matching: 15 Points 1. Negative balance employers 2. Household employers 3. Title XII advances 4. Form 940 5. Voluntary contributions 6. Payroll register 7. Payroll taxes 8. Garnishment 9. Pay cards 10. Disposable earnings A. Extra state unemployment contributions in addition to employers? regular SUTA tax payments B. Annual Federal Unemployment Tax Return C. Borrowings from federal government to pay unemployment compensation benefits D. Employees whose reserve account has been charged with more benefits paid out than contributions made E. Pay FUTA tax with Schedule H of Form 1040 F. Debit card-based accounts G. Legal procedure by which a portion of a person?s wages must be withheld for payment of a debt H. Expense account for FICA, FUTA and SUTA taxes on the Employer I. Earnings remaining after withholding for income taxes and for other amounts required by law J. Provides information needed in preparing the journal entries for payroll Part 2: True or False 20 Points 1.The federal unemployment tax is imposed on employers, and thus, is not deducted from employees?wages 2.Educational assistance payments to workers are considered nontaxable wages for unemployment purposes 3.For the purpose of the FUTA tax, members of partnerships are considered employees 4.FUTA coverage does not include service of any nature performed outside the United States by a citizen of the United States for an American employer 5.The location of the employee?s residence is the primary factor to be considered in determining coverage of an employee who works in more than one state 6.A bonus paid as remuneration for services is not considered taxable wages for unemployment tax purposes even if the employee has not exceeded the taxable wage base 7.In the case of an employee who changes jobs during the year, only the first employer must pay FUTA tax on that employee?s earnings 8.The maximum credit that can be applied to the FUTA tax because of SUTA contributions is 5.4%. 9.If an employer pays a SUTA tax of 2.0%, the total credit that can be claimed against the FUTA tax is 2.0% 10.If the employer pays all of the state unemployment contributions after the filing date for Form 940, the maximum credit that can be claimed against the FUTA tax is 90% of 6.2% 11.Employee contributions made on a pretax basis to a cafeteria plan are included in total payments on Form 940 and then deducted as exempt payments 12.The payments of FUTA taxes are included with the payments of FICA and FIT taxes and are paid as one lump sum 13.If an employer?s FUTA tax liability for the 1st quarter is $935, no payment is required for the 1st quarter 14.If a business has ceased operations during the year, as long as the payments of the FUTA taxes have been made, a Form 940 does not need to be completed for that year 15.Form 940 mailed by the due date is timely filed even if received by the IRS after the due date. 16.In certain circumstances, a FUTA tax payment can be remitted with Form 940. 17.All of the states allow employers to make voluntary contributions into their state unemployment funds so that a lower tax contribution rate would be assigned 18.Employers have to pay a FUTA tax on only the first $3,500 of each part-time employee?s earnings (1/2 of the full $7,000 limit) 19.Voluntary contributions by employers into a state?s unemployment fund in order to receive a reduced unemployment compensation rate are not permitted by all states 20.Form 940 can also be used to file an amended return Part 3: Multiple Choice 20 Points 1. Carmen Gaetano worked 46 hours during this payweek. He is paid time-and-a-half for hours over 40 and his pay rate is $17.90/hour. What was his overtime premium pay for this workweek? a. $107.40 b. $161.10 c. $50.70 d. $53.70 e. $26.85 2. The employee?s earnings record provides information for each of the following except: a. completing Forms W-2. b. completing the journal entry to record the payroll. c. determining when the accumulated wages of an employee reach cutoff levels. d. preparing reports required by state unemployment compensation laws. e. preparing the payroll register. 3. Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday? a. Payroll Taxes b. Federal Income Taxes Payable c. Wages Expense d. Salaries Payable e. None of the above 4. Which of the following accounts is an expense account in which an employer records the FICA, FUTA, and SUTA taxes? a. Wages Expense b. Payroll Taxes c. SUTA Taxes Payable d. Salaries Payable e. None of the above 5. The entry to deposit FICA taxes and federal income taxes withheld involves all of the following accounts except: a. Payroll Taxes. b. FICA Taxes Payable?OASDI. c. FICA Taxes Payable?HI. d. Employees FIT Payable. e. Cash. 6. Which of the following is not an expense of the employer? a. FUTA tax b. FICA tax?HI c. FICA tax?OASDI d. SUTA tax e. Union dues withheld 7. When recording the deposit of FUTA taxes owed, the proper entry is: a. FUTA Tax Expense Cash b. Payroll Taxes Cash c. Payroll Taxes FUTA Taxes Payable d. FUTA Taxes Payable Cash e. FUTA Tax Expense FUTA Taxes Payable 8. The entry made at the end of the accounting period to record wages incurred but unpaid is: a. Wages Expense Wages Payable b. Wages Expense FICA Taxes Payable?OASDI FICA Taxes Payable?HI FIT Payable Wages Payable c. Wages Payable Cash d. Wages Expense Cash e. Wages Expense Payroll Taxes Wages Payroll 9. Which of the following items would require an adjusting entry at the end of each accounting period? a. Garnishment for child support payments b. Withholdings for a 401(k) plan c. Vacation pay earned by employees d. Union dues withheld e. None of the above 10. In recording the monthly adjusting entry for accrued wages at the end of the accounting period, the amount of the adjustment would usually be determined by: a. collecting the timesheets for the days accrued. b. using the same amount as the prior month?s adjustment. c. using the wages of the salaried workers only. d. a percentage of the previous week?s gross payroll. e. a percentage of the previous week?s net payroll. Part 4: Journal Entries 15 Points The totals from the first payroll of the year are shown below. Total FICA FICA FIT State Union Net Earnings OASDI HI W/H Tax Dues Pay $36,195.10 $2,244.10 $524.83 $6,515.00 $361.95 $500.00 $26,049.22 1. Journalize the entry to record the payroll. 2. Journalize the entry to record the employer?s payroll taxes (assume a SUTA rate of 3.7%). Part 5: Unemployment Taxes 15 Points Niemann Company has a SUTA tax rate of 7.1%. The taxable payroll for the year for FUTA and SUTA is $82,600. (a) The amount of FUTA tax for the year is (b) The amount of SUTA tax for the year is Part 6: 15 Points John Gercke is an employee of The Woolson Company. During the first part of the year, he earned $6,800 while working in State A. For the remainder of the year, the company transferred him to State B where he earned $16,500. The Woolson Company?s tax rate in State A is 4.2%, and in State B it is 3.15% on the first $7,000. Assuming that reciprocal arrangements exist between the two states, determine the SUTA tax that the company paid to: (a) State A (b) State B
Question 3
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.,I am able to provide the book we are using if that would be of assistance.
Question 4
At the beginning of the current period, Huang Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $9,000 (credit). During the period, it had net credit sales of $800,000 and collections of $743,000. It wrote off as uncollectible accounts receivable of $7,000. However, a $4,000 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,000 at the end of the period. Instructions (a) Prepare the entries to record sales and collections during the period. (b) Prepare the entry to record the write-off of uncollectible accounts during the period. (c) Prepare the entries to record the recovery of the uncollectible account during the period. (d) Prepare the entry to record bad debts expense for the period. (e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. (f) What is the net realizable value of the receivables at the end of the period?,At the beginning of the current period, Huang Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $9,000 (credit). During the period, it had net credit sales of $800,000 and collections of $743,000. It wrote off as uncollectible accounts receivable of $7,000. However, a $4,000 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,000 at the end of the period. Instructions (a) Prepare the entries to record sales and collections during the period. (b) Prepare the entry to record the write-off of uncollectible accounts during the period. (c) Prepare the entries to record the recovery of the uncollectible account during the period. (d) Prepare the entry to record bad debts expense for the period. (e) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. (f) What is the net realizable value of the receivables at the end of the period?,Did you get my last message?,How much time do you think you will need? Not trying to rush...I would like to know for future references. Thanks,Thanks I got it!!! Question: What does the "Dr" represent in the Solution?
Question 5
What conclusions can be drawn from the following article? (At least 250 words) Order Just About Anything from Amazon at a Reasonable Price Online retail pioneer Amazon.com has built a profitable $24.5 billion business by paying close attention to pricing details. Founded as a web-based bookstore with discount prices, Amazon has since expanded into dozens of product categories and countries. The company never stops investigating in technology to upgrade its sites, systems, and offerings. Although hefty high-tech costs are a drag on profit margins, they are essential to Amazon?s strategy of attracting customers and keeping them loyal by making the shopping experience easy, fast, and fun. One hallmark of Amazon?s pricing is its long-running offer of free shipping for orders of $25 or more. Because shoppers know they are saving money, they are more inclined to keep shopping even after they reach the $25 order threshold to qualify for shipping. Free shipping has helped Amazon build sales over the years, but it has also added to the company?s cost and cut into profits. In the wake of Amazon?s success with free shipping, L.L. Bean and others have tested free shipping with no minimum purchase requirement during some holiday periods. But making free shipping pay off is tricky, notes a marketing executive at L.L. Bean: ?It is expensive to so, and it is easy to lose a lot of money doing it.? Amazon is earning significant profits from serving as an online storefront for other marketers (and consumers) to sell their products. Every time a customer buys something from a seller participating in the Amazon Marketplace, Amazon collects a fee. The margins are especially attractive in this fast growing part of the business because Amazon does not pay to buy or store any inventory, and the cost of posting items for others is extremely low now that the electronic storefront is up and running. All-digital products like electronic books, music, movies, and games are lucrative because they entail no inventory or shipping costs. This is why Amazon is moving aggressively into digital content and related products. Its popular Kindle, first introduced in 2007, is an e-book reader that wirelessly connects to the Internet so customers can download an electronic book, newspaper, or magazine in seconds. Initially, Amazon priced the Kindle higher than the Sony Reader, its main competitor at the time. Despite the high price, demand outstripped supply for a time, and Amazon struggled to increase output. As Barnes & Noble and others began offering their own e-book readers, Amazon lowered the price and poured on the promotion to keep up the Kindle?s sales momentum. The Kindle has created a controversy over e-book pricing. When Amazon first launched the Kindle, it priced most best-selling e-books at only $9.99 each, with a few priced even lower. Publishers fumed, because the hard-cover price of these books was considerably higher. The situation changed in early 2010, as Apple prepared to debut its iPad tablet computer. Apple was trumpeting the iPad?s capabilities as an e-book reader and making deals with publishers to carry downloadable digital content. Under pressure from the publishers and faced with a new level of competition from Apple?s much-anticipated device, Amazon took a step back from its digital discounting. It listened to the publishers and raised the retail price of many digital best-sellers by a few dollars but retained the $9.99 price for selected e-books. Today, Kindle customers can buy and instantly download more than 450,000 books. ?Our vision is to have every book that has ever been in print available in less than 60 seconds,? says Amazon founder Jeff Bezos. The Kindle has become Amazon?s best-selling product and dramatically increased sales of electronic books, magazines, and similar products. In fact, when Amazon offers the same book in printed and digital format, it sells 6 digital downloads for every 10 physical units. Multiply the savings in shipping costs alone, and it?s easy to see why Amazon has put so much emphasis on electronic delivery of books and other content. Looking ahead, Amazon will be paying close attention to the pricing of rival gadgets and the way digital content is being priced. Although it?s now the undisputed leader in electronic book sales, that market share is likely to erode little by little as more customers are offered the opportunity to buy and download more books from additional sources.
