EOQ. The Trektronics store begins each month with 740 phasers in stock

EOQ. The Trektronics store begins each month with 740 phasers in stock. This stockis depleted each month and

reordered. If the carrying cost per phaser is $26 per year and the fixed cost is $340, what is the total carrying cost? What is the restocking cost? Should the company increase or decrease its order size? Describe tan optimal inventory policy for the company in terms of order size and order frequency.

 
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Given the following financial data, compute the return on assets and return on equity:

Given the following financial data, compute the return on assets and return on equity: net income/sales = 8%,

sales/total assets = 2.5X, and debt/total assets = 15%.

 
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(TCO 9) D Trucking uses the accrual method of accounting.

(TCO 9) D Trucking uses the accrual method of accounting. Below is a reconciliation of D Trucking’s allowance for

bad debts for the current year.

Beginning allowance for bad debts $61,150
Actual write-offs of accounts receivable during the year (70,000)
Addition to allowance 90,500
Ending allowance for bad debts  $69,650

Considering the difference between the GAAP and the tax rules for accounting for bad debts, calculate D Trucking’s temporary excess of taxable income over book income. (Points : 30)

 
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TCO 8) During the audit of Mr. and Mrs. Greenwood’s income tax return

TCO 8) During the audit of Mr. and Mrs. Greenwood’s income tax return, the revenue agent concluded that the

couple had claimed a $26,300 deduction that was not allowed by law. The improper deduction reduced the couple’s tax by $19,205. The Greenwood’s total tax deficiency was $13,890.

Compute the penalty that the IRS agent can impose if the agent concludes that the improper deduction was attributable to negligence.

Compute the penalty that the IRS agent can impose if the agent concludes that the improper deduction was attributable to fraud. (Points : 30)

 
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