Provide A Professional Application Of Two Inventory Control Models (an ABC Model And A
Provide a professional application of two inventory control models (an ABC model and a Quantity Discount Model). In addition, please provide a one paragraph description to the application and a one paragraph conclusion to the application.
M Corporation Reported 2018 Book Net Income Of $185,000. The Following Items Were Included
M Corporation reported 2018 book net income of $185,000. The following items were included in book income for 2018: State A income tax expense $ 15,000 State B income tax expense $ 5,000 Federal income tax expense $49,000 Book depreciation expense $ 18,000 Municipal bond interest income $ 10,000 US government obligation interest income $ 12,000 Dividends received from 5% owned US co. $ 8,000 Separately, M Corporation computed federal tax depreciation of $26,000. 1. M Corporation computed state tax depreciation of $23,000. M is only taxable in States A and B. All investment income, including interest and dividend income is earned in State A. State A allows exclusion for interest earned on federal obligations, taxes all municipal interest and disallows all deductions for state income taxes .State A has not adopted federal depreciation methods and does not recognize the dividends received deduction. State A apportions taxable income based on the average of three factors- payroll, property, and sales. M Corporation has 60% of its payroll, 40% of its property, and 20 % of its sales in State A. Based on the above information; compute M’s state 2018 taxable income in State A.
Maria Cupcakes After Her Graduation, Maria Decided To Start Her New Cupcakes Shop In
Maria Cupcakes After her graduation, Maria decided to start her new Cupcakes Shop in a fast growing Area. As a source of initial cost financing, she received a loan of 400KEGP at interest rate of 15%, to be paid over 4 years. Fixed Costs per Month Staff salaries: 25,000 Rental fees: 65,000 Expected demand and costs per Piece Variable Costs (Expenses Only) per Unit: 3 EGP Expected Average number of Sold Units/Day: 200 pieces (Expected Growth rate of 20% y/y). Based on her pricing strategy, Maria set a price of 35 EGP/pc. Vanilla Cupcakes- Bill of Materials- Y1 Ingredient Qty Unit of Measure Plain 25 G Sugar 100 G Eggs 1 Piece Vanilla Extract 4 Teaspoon Baking Powder 2 Teaspoon Milk 50 G Key Assumptions Year 1 Prices Ingredient Price Unit of Measure Currency Plain 10 KG EGP Sugar 1 KG USD Large Eggs 2 Pc EGP Vanilla Extract 2 Teaspoon EGP Baking Powder 2 Teaspoon EGP Milk 11 KG EGP 1USD:18EGP § Inflation Rate:25% § Working Days/year: 300 Days § Rental fees increasing by 5 % y/y (5 years contract ) § Material prices increasing 10% y/y “ For Materials purchased in local Currency” § Starting year 4, Maria is planning to have a new Recipe. Vanilla Cupcakes- Bill of Materials- Y4 Ingredient Qty Unit of Measure Plain 20 G Sugar 100 G large Eggs 1 Piece Vanilla Extract 3 Teaspoon Baking Powder 2 Teaspoon Milk 50 G In 40 mins, help Maria to assess the following; • CM % in Y1. • Required volume to Achieve 50,000 EGP Net in profit in year1. • Profit
Three Entrepreneurs Were Looking To Start A New Brewpub Near Sacramento, California, Called Roseville
Three entrepreneurs were looking to start a new brewpub near Sacramento, California, called Roseville Brewing Company (RBC). Brewpubs provide two products to customers—food from the restaurant segment and freshly brewed beer from the beer production segment. Both segments are typically in the same building, which allows customers to see the beer-brewing process. After months of research, the owners created a financial model that showed the following projections for the first year of operations. Sales Beer sales $ 856,800 Food sales 979,200 Other sales 204,000 Total sales $ 2,040,000 Less cost of sales 475,320 Gross margin $ 1,564,680 Less marketing and administrative expenses 1,138,800 Operating profit $ 425,880 In the process of pursuing capital through private investors and financial institutions, RBC was approached with several questions. The following represents a sample of the more common questions asked: What is the break-even point? What sales dollars will be required to make $230,000? To make $540,000? Is the product mix reasonable? (Beer tends to have a higher contribution margin ratio than food, and therefore product mix assumptions are critical to profit projections.) What happens to operating profit if the product mix shifts? How will changes in price affect operating profit? How much does a pint of beer cost to produce? It became clear to the owners of RBC that the initial financial model was not adequate for answering these types of questions. After further research, RBC created another financial model that provided the following information for the first year of operations. Sales Beer sales (42% of total sales) $ 856,800 Food sales (48% of total sales) 979,200 Other sales (10% of total sales) 204,000 Total sales $ 2,040,000 Variable Costs Beer (12% of beer sales) $ 102,816 Food (32% of food sales) 313,344 Other (29% of other sales) 59,160 Wages of employees (22% of sales) 448,800 Supplies (3% of sales) 61,200 Utilities (5% of sales) 102,000 Other: credit card, misc. (2% of sales) 40,800 Total variable costs $ 1,128,120 Contribution margin $ 911,880 Fixed Costs Salaries: manager, chef, brewer $ 139,000 Maintenance 27,000 Advertising 14,000 Other: cleaning, menus, misc 36,000 Insurance and accounting 39,000 Property taxes 19,000 Depreciation 86,000 Debt service (interest on debt) 126,000 Total fixed costs $ 486,000 Operating profit $ 425,880 Required: Perform a sensitivity analysis by answering the following questions: a. What is the break-even point in sales dollars for RBC? b. What is the margin of safety for RBC? c. What sales dollars would be required to achieve an operating profit of $230,000? $540,000?
Hank Started A New Business, Hank’s Donut World (HW For Short), In June Of
Hank started a new business, Hank’s Donut World (HW for short), in June of last year. He has requested your advice on the following specific tax matters associated with HW’s first year of operations. Hank has estimated HW’s income for the first year as follows: (Do not round intermediate calculations.) Revenue: Donut sales $ 252,000 Catering revenues 71,550 $ 323,550 Expenditures: Donut supplies $ 124,240 Catering expense 27,910 Salaries to shop employees 52,500 Rent expense 40,050 Accident insurance premiums 8,400 Other business expenditures 6,850 – 259,950 Net Income $ 63,600 HW operates as a sole proprietorship and Hank reports on a calendar year. Hank uses the cash method of accounting and plans to do the same with HW (HW has no inventory of donuts because unsold donuts are not salable). HW does not purchase donut supplies on credit nor does it generally make sales on credit. Hank has provided the following details for specific first-year transactions. A small minority of HW clients complained about the catering service. To mitigate these complaints, Hank’s policy is to refund dissatisfied clients 50 percent of the catering fee. By the end of the first year, only two HW clients had complained but had not yet been paid refunds. The expected refunds amount to $1,700, and Hank reduced the reported catering fees for the first year to reflect the expected refund. In the first year, HW received a $6,750 payment from a client for catering a monthly breakfast for 30 consecutive months beginning in December. Because the payment didn’t relate to last year, Hank excluded the entire amount when he calculated catering revenues. In July, HW paid $1,500 to ADMAN Co. for an advertising campaign to distribute fliers advertising HW’s catering service. Unfortunately, this campaign violated a city code restricting advertising by fliers, and the city fined HW $250 for the violation. HW paid the fine, and Hank included the fine and the cost of the campaign in “other business” expenditures. In July, HW also paid $8,400 for a 24-month insurance policy that covers HW for accidents and casualties beginning on August 1 of the first year. Hank deducted the entire $8,400 as accident insurance premiums. On May of the first year, Hank signed a contract to lease the HW donut shop for 10 months. In conjunction with the contract, Hank paid $2,000 as a damage deposit and $8,050 for rent ($805 per month). Hank explained that the damage deposit was refundable at the end of the lease. At this time, Hank also paid $30,000 to lease kitchen equipment for 24 months ($1,250 per month). Both leases began on June 1 of the first year. In his estimate, Hank deducted these amounts ($40,050 in total) as rent expense. Hank signed a contract hiring WEGO Catering to help cater breakfasts. At year-end, WEGO asked Hank to hold the last catering payment for the year, $9,250, until after January 1 (apparently because WEGO didn’t want to report the income on its tax return). The last check was delivered to WEGO in January after the end of the first year. However, because the payment related to the first year of operations, Hank included the $9,250 in last year’s catering expense. Hank believes that the key to the success of HW has been hiring Jimbo Jones to supervise the donut production and manage the shop. Because Jimbo is such an important employee, HW purchased a “key-employee” term-life insurance policy on his life. HW paid a $5,100 premium for this policy and it will pay HW a $40,000 death benefit if Jimbo passes away any time during the next 12 months. The term of the policy began on September 1 of last year and this payment was included in “other business” expenditures. In the first year, HW catered a large breakfast event to celebrate the city’s anniversary.The city agreed to pay $7,100 for the event, but Hank forgot to notify the city of the outstanding bill until January of this year. When he mailed the bill in January, Hank decided to discount the charge to $5,500. On the bill, Hank thanked the mayor and the city council for their patronage and asked them to “send a little more business our way.” This bill is not reflected in Hank’s estimate of HW’s income for the first year of operations. Required: a. Hank files his personal tax return on a calendar year, but he has not yet filed last year’s personal tax return nor has he filed a tax return reporting HW’s results for the first year of operations. Explain when Hank should file the tax return for HW and calculate the amount of taxable income generated by HW last year. b. Determine the taxable income that HW will generate if Hank chooses to account for the business under the accrual method.
The Preclosing Trial Balance At December 31, 20X1, For Lone Wolf’s General Fund
The preclosing trial balance at December 31, 20X1, for Lone Wolf’s general fund follows. Debit Credit Cash $ 100,000 Property Taxes Receivable—Delinquent 115,200 Allowance for Uncollectibles—Delinquent $ 7,100 Due from Other Funds 14,400 Vouchers Payable 66,000 Due to Other Funds 8,500 Fund Balance—Unassigned 118,000 Property Tax Revenue 1,145,000 Miscellaneous Revenue 43,000 Expenditures 1,130,000 Other Financing Uses—Transfer Out 28,000 Estimated Revenues Control 1,231,000 Appropriations Control 1,145,000 Estimated Other Financing Uses—Transfer Out 28,000 Encumbrances 37,000 Budgetary Fund Balance—Assigned for Encumbrances 37,000 Budgetary Fund Balance—Unassigned 58,000 Total $ 2,655,600 $ 2,655,600 Lone Wolf uses the purchase method of accounting for inventories and the lapsing method of accounting for encumbrances. Prepare the closing entries for the general fund. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) b. Prepare a general fund–only balance sheet at December 31, 20X1. (Follow the same sequence shown in the problem statement to select the appropriate answers. Amounts to be deducted should be indicated with minus sign.)
E17-11 Statement Of Revenues, Expenditures, And Changes In Fund Balance LO 17-7 The Preclosing
E17-11 Statement of Revenues, Expenditures, and Changes in Fund Balance LO 17-7 The preclosing trial balance at December 31, 20X1, for Lone Wolf’s general fund follows. Debit Credit Cash $ 92,000 Property Taxes Receivable—Delinquent 123,100 Allowance for Uncollectibles—Delinquent $ 7,400 Due from Other Funds 14,900 Vouchers Payable 62,000 Due to Other Funds 8,600 Fund Balance—Unassigned 124,000 Property Tax Revenue 1,145,000 Miscellaneous Revenue 35,000 Expenditures 1,135,000 Other Financing Uses—Transfer Out 17,000 Estimated Revenues Control 1,212,000 Appropriations Control 1,150,000 Estimated Other Financing Uses—Transfer Out 17,000 Encumbrances 39,000 Budgetary Fund Balance—Assigned for Encumbrances 39,000 Budgetary Fund Balance—Unassigned 45,000 Total $ 2,633,000 $ 2,633,000 Lone Wolf uses the purchase method of accounting for inventories and the lapsing method of accounting for encumbrances. Assume that the balances on December 31, 20X0, were as follows: Fund Balance—Assigned for Encumbrances $ 30,000 Fund Balance—Unassigned 94,000 Required: Prepare a general fund–only statement of revenues, expenditures, and changes in fund balance for fiscal 20X1.
During 20X8, The Following Transfers And Transactions Between Funds Took Place In The
During 20X8, the following transfers and transactions between funds took place in the City of Matthew. 1. On March 1, a $12,600 transfer was made from the general fund to establish a building maintenance internal service fund. Matthew uses transfer accounts for this type of transfer. 2. On April 1, the general fund made an $12,100, six-month loan to the building maintenance service fund. 3. On April 15, $2,480 was transferred from the general fund to the debt service fund to pay interest. 4. On May 5, Matthew’s transportation service fund billed the general fund $900 for April services. Required: a. Prepare journal entries and appropriate closing entries for the general fund involved that should be recorded at the time of each transfer or transaction. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) b. Prepare journal entries and appropriate closing entries for the other fund involved that should be recorded at the time of each transfer or transaction. (Select the appropriate fund for each situation. If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
The Following Is A List Of Selected Account Balances In The Unrestricted Operating
The following is a list of selected account balances in the unrestricted operating fund for Pleasant School: Debit Credit Unrestricted Net Assets, July 1, 20X1 $ 450,000 Tuition
E20-2 Recovery Analysis For A Chapter 11 Reorganization LO 20-2 The Plan Of Reorganizing
E20-2 Recovery Analysis for a Chapter 11 Reorganization LO 20-2 The plan of reorganizing for Taylor Companies, Inc., was approved by the court, stockholders, and creditors on December 31, 20X1. The plan calls for a general restructuring of all of Taylor’s debt. The company’s liability and capital accounts on December 31, 20X1, are as follows: Accounts Payable (postpetition) $ 30,600 Liabilities Subject to Compromise: Accounts Payable 80,200 Notes Payable, 9%, unsecured 150,300 Interest Payable 36,400 Bonds Payable, 10% 200,000 Common Stock, $1 par 101,100 Additional Paid-In Capital 200,200 Retained Earnings (deficit) (179,000 ) Total $ 619,800 A total of $30,600 of accounts payable has been incurred since the company filed its petition for relief under Chapter 11. No other liabilities have been incurred since the petition was filed. No payments have been made on the liabilities subject to the compromise that existed on the petition date. Under the terms of the reorganization plan: 1. The accounts payable creditors existing at the date the petition was filed agree to accept $72,982 of net accounts receivable in full settlement of their claims. 2. The holders of the 9 percent notes payable of $150,300 plus $16,400 of interest payable agree to accept land having a fair value of $121,743 and a book value of $85,900. 3. The holders of the 10 percent bonds payable of $200,000 plus $20,000 of interest payable agree to cancel accrued interest of $15,000, accept cash payment of the remaining $5,000 of interest, and accept a secured interest in the company’s equipment in exchange for extending the term of the bonds for an additional year at no interest. 4. The common shareholders agree to reduce the deficit by changing the stock’s par value to $2 per share and eliminating any remaining deficit after recognition of all gains or losses from the debt restructuring transactions specified in the plan of reorganization. The deficit will be eliminated by reducing additional paid-in capital. Required: a. Prepare a recovery analysis for the plan of reorganization, concluding with the total recovery of each liability and capital component of Taylor Companies. (Amounts to be deducted should be indicated with minus sign.) b. Prepare the journal entries to account for the discharge of the debt and the restructuring of the common equity in fulfillment of the plan of reorganization. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
Question 1 Tax Effect Accounting (60 Marks) Camberwell Services Ltd. Had A Before-tax Profit
Question 1 Tax effect accounting (60 marks) Camberwell Services Ltd. had a before-tax profit as reported on its Statement of Comprehensive Income of $400,493 for the year ended 30 June 2019. The following revenue and expenses were included in that statement: $ Rent revenue 30,000 Government grant 10,000 Bad debt expense 60,000 Depreciation – building 8,000 Depreciation – plant 50,000 Depreciation – motor vehicles 55,000 Employee benefit expense 75,000 Office supplies expense 15,000 Entertainment expenses 18,000 Interest revenue 36,000 An extract from the company’s draft Statement of Financial Position for 2019 and 2018 showed the following assets and liabilities, with the current deferred tax asset and liability balance to be determined: 2019 2018 Assets Cash 80,000 85,000 Inventory 170,000 155,000 Interest receivable 40,000 20,000 Trade receivable 500,000 480,000 Provision for bad and doubtful debts (55,000) (40,000) Office supplies 25,000 22,000 Land * 750,000 650,000 Building 300,000 300,000 Accumulated depreciation – building (148,000) (140,000) Plant 500,000 500,000 Accumulated depreciation – plant (260,000) (210,000) Motor Vehicles 165,000 165,000 Accumulated depreciation – motor vehicles (132,000) (115,500) Goodwill 70,000 70,000 Deferred tax asset ? 40,500 Liabilities Trade payables 290,000 260,000 Provision for employee benefits 100,000 75,000 Rent received in advance 25,000 20,000 Deferred tax liability ? 38,100 Additional information a. Depreciation of buildings and entertainment expenses are not recognised tax deductions. b. The start-up government grant is not treated as assessable income by the Australian Taxation Office. c. Office supplies are claimed as a deduction when purchased. $15,000 of supplies were expensed (used) during the year. d. Land, which had originally cost $650,000 was revalued in 2019. e. Accumulated depreciation of the plant for tax purposes was $315,000 at 30 June 2018 and depreciation for tax purposes for the year ended 30 June 2019 amounted to $75,000. f. Accumulated depreciation of motor vehicles for tax purposes was $46,200 at 30 June 2018 and depreciation for tax purposes for the year ended 30 June 2019 amounted to $33,000. g. In the previous year, Camberwell Services Ltd made a tax loss of $29,630 and recognised a deferred tax asset in respect of this loss. h. The company pays tax in quarterly instalments. The following payments were made during the year ended 30 June 2019: ◦ 28 July 2018 (final payment for 30 June 2018) $22,500 ◦ 28 October (first payment for 30 June 2019) $31,420 ◦ 28 February (second payment for 30 June 2019) $30,380 ◦ 28 April (third payment for 30 June 2019) $31,750 i. the tax rate for the year ended 30 June 2019 was 30%, and no tax-related journal entries, other than for revaluation of land, have been recorded for the year ended 30 June 2019. j. Assume the tax balances as at 30 June 2018 are correct. Required: 1. Prepare the current tax worksheet to calculate the current tax liability for the year ended 30 June 2019 (show all working). (25 Marks) 2. Prepare the deferred tax worksheet to calculate the deferred tax asset and liability balances and adjustments for the year ended 30 June 2019. Include all accounts and net balances where appropriate. Show workings where required. (32 Marks) 3. Prepare the journal entries to recognise the current tax liability, deferred tax assets, and liabilities at 30 June 2019. (3 Marks)
On The 1 July, 2016 Johnson Ltd Acquired All The Shares In Mason Ltd
On the 1 July, 2016 Johnson Ltd acquired all the shares in Mason Ltd (cum div.), for $3,200,000. Equity at that date was: $ Share Capital 1,750,000 General Reserve 700,000 Retained Earnings 900,000 Dividend Payable 80,000 At acquisition date, all the identifiable assets and liabilities of Mason Ltd were recorded at amounts equal to fair value except for: Carrying Amount Fair Value $ $ Inventory 900,000 950,000 Land 1,400,000 1,600,000 Plant (accumulated depreciation $1,260,000) 2,340,000 2,210,000 Johnson Ltd also identified a $75,000 contingent liability for a pending court ruling on patent infringements, which was recognised as a provision for consolidation purposes. Additional information regarding the acquired assets and liabilities. 1. The revalued inventory was all sold in August 2016. 2. The plant had a remaining useful life of 13 years and was still retained as at 30 June 2019. Depreciation is calculated on a straight-line basis. 3. Mason Ltd settled the patent infringement case on 25 January 2019 for $90,000. Additional information regarding the intragroup transactions. Transactions for the financial year 2016-2017: a. On 31 March 2017, Johnson Ltd sold machinery, with a carrying value of $435,000, to Mason Ltd for $471,250. The plant, which had a useful life of ten years, was purchased for $600,000. The remaining useful life of the plant was seven years and three months (7.25 years). Transactions for the financial year 2017-2018: a. Mason Ltd sold Inventory to Johnson Ltd for $17,000, which included a mark-up of 25%. As of 30 June 2018, 40% of that inventory was still held by Johnson Ltd. b. Johnson Ltd sold some plant, with a carrying amount of $12,000, to Mason Ltd for $8,000 on 31 December 2017. The remaining useful life of the plant was six years. Transactions for the financial year 2018-2019: a. Inventory still on hand as at 30 June 2018, was all on sold by Johnson Ltd in August 2018. b. Inventory worth $90,000 that was sold by Johnson Ltd to Mason Ltd for $120,000 during June 2019 was still on hand as at 30 June 2019. c. Mason Ltd also sold Johnson Ltd inventory for $55,000, at a mark-up of 25%. Only 20% of that inventory had been sold outside the group by 30 June 2019. d. On 1 October 2018 Johnson Ltd provided Mason Ltd with a loan for $200,000, on an interest-only basis for two years. The interest rate applicable to the loan was 5% per year. Interest is due on the last day of each quarter and paid by the 15th of the following month. Loan repayments will not commence until 2020. e. During 2019 Johnson Ltd provided management consulting services to Mason Ltd. The amount due as at 30 June was $115,000. f. Johnson Ltd recognises dividends when declared. g. Both Johnson Ltd and Mason Ltd revalued post-acquisition equipment assets as at 30 June 2018. The tax rate for the entities is 30%, and all depreciation is on a straight-line basis. A consolidation worksheet has been partially prepared using the 30 June 2019 draft trial income statement and statement of financial position of Johnson Ltd and Mason Ltd as follows: Johnson Ltd Mason Ltd Sales Revenue 4,200,000 1,400,000 Cost of goods sold (1,750,000) (490,000) Other operating expenses (210,000) (105,000) Other revenue 245,000 87,500 Operating Profit 2,485,000 892,500 Income tax expense (700,000) (750,000) Profit after tax 1,785,000 542,500 Retained Earnings – 1 July 2018 3,500,000 1,200,000 Dividend paid (300,000) (60,000) Dividend declared (400,000) (80,000) Retained earnings – 30 June 2019 4,585,000 1,602,500 Share Capital 14,000,000 1,750,000 Asset revaluation surplus 35,000 10,500 General Reserve 900,000 Total Equity 18,620,000 4,263,000 Current Liabilities Trade and other payable 350,000 297,500 Non-current liabilities Deferred tax liability 130,000 24,500 Loans 2,100,000 375,000 Loan from Johnson Ltd 200,000 Total non-current liabilities 2,230,000 599,500 Total Liabilities 2,580,000 897,000 Total Liabilities and Equity 21,200,000 5,160,000 Current Assets Cash 925,000 87,500 Trade and other receivables 535,500 219,000 Impairment – trade receivables (10,500) (6,500) Inventory 2,100,000 985,000 Total current assets 3,550,000 1,285,000 Non-current assets Land 5,340,000 1,400,000 Plant 11,466,000 4,079,000 Accumulated depreciation – Plant (3,276,000) (1,944,000) Equipment 615,000 207,000 Accumulated depreciation – Equipment (165,000) (42,000) Loan to Mason Ltd 200,000 Investment in Mason Ltd 3,120,000 Deferred tax asset 350,000 175,000 Total non-current assets 17,650,000 3,875,000 Total assets 21,200,000 5,160,000 Required: 1. Determine the gain on bargain purchase or goodwill as at acquisition date. (4 marks) 2. Prepare the consolidation journal entries for Johnson Ltd immediately after acquisition on 1 July 2016. (10 marks) 3. Prepare the consolidation journal entries for Johnson Ltd as at 30 June 2017. (17 marks) 4. Prepare the pre-acquisition entries only as at 30 June 2018. (5 marks) 5. Prepare the consolidation journal entries for Johnson Ltd as at 30 June 2019. (34 marks) 6. Prepare the consolidation worksheet for the preparation of the consolidated financial statements for the year ended 30 June 2019. (20 marks) Expert Answer
I Only Need F And G Answered. I Received Full Credit On The Other
I only need F and G answered. I received full credit on the other letters but cannot seem to figure out the last two. Thanks
Turner, Roth, And Lowe Are Partners Who Share Income And Loss In A 1:4:5
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $140,400; total liabilities, $90,000; Turner, Capital, $3,700; Roth, Capital, $14,600; and Lowe, Capital, $32,100. Cash received from selling the assets was sufficient to repay all but $34,000 to the creditors. Amount to be Repaid to Partnership Assume that the Turner, Roth, and Lowe partnership is a limited partnership. Turner and Roth are general partners and Lowe is a limited partner. How much should each partner contribute to cover the remaining capital deficiency of $34,000? (Do not round intermediate calculations. Losses and deficits amounts to be deducted should be entered with a minus sign.) Calculate Gain (Loss) on Sale of Assets Turner Roth Lowe Total Initial capital balances $3,700 $14,600 $32,100 $50,400 Allocation of gains (losses) 1/10 4/10 5/10 0 Capital balances after gains (losses) $50,400
Some Theorist Contend That Companies That Create Pollition Should Report Cost Of That Pollution
some theorist contend that companies that create pollition should report cost of that pollution in income statements. they argue that such companies are indirectly subsidized as the cost of pollition is borne by society while only production cost are shown in the income statement. thus, the product sells for less that would be necessary if all costs were included. my mission is to explain how the concepts of relevance and faithful representation relte to this issue. its for a discussion board, it requires me about a 500 words answer.
Financial Statement Analysis Case RAGATZ, INC. 2017 (,000) Current Liabilities $ 554,114 Convertible Subordinated
Financial Statement Analysis Case RAGATZ, INC. 2017 (,000) Current liabilities $ 554,114 Convertible subordinated debt $ 648,020 Total liabilities $ 1,228,313 Stockholders’ equity $ 176,413 Net income $ 58,333 Analysts attempting to compare Ragatz to drug companies that issue debt with detachable warrants may face a challenge due to differences in accounting for convertible debt. INSTRUCTIONS Compute the following ratios for Ragatz, Inc. (Assume that year-end balances approximate annual averages.) (1) Return on assets. (2) Return on common stock equity. (3) Debt to assets ratio. Briefly discuss the operating performance and financial position of Ragatz. Industry averages for these ratios in 2017 were ROA 3.5%; return on equity 16%; and debt to assets 75%. Based on this analysis, would you make an investment in the company’s 5% convertible bonds? Explain. Assume you want to compare Ragatz to an IFRS company like Merck (which issues nonconvertible debt with detachable warrants). Assuming that the fair value of the equity component of Ragatz’s convertible bonds is $150,000, how would you adjust the analysis above to make valid comparisons between Ragatz and Merck?
On 1 January 2016 Anderson Ltd Acquired 85% Of The Equity Of Trinity Ltd
On 1 January 2016 Anderson Ltd acquired 85% of the equity of Trinity Ltd at a cost of $430,000. $ Share Capital 300,000 General Reserve 50,000 Retained Earnings 90,000 At this date, Trinity Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the following assets: Carrying amount Fair value $ $ Inventory 45,000 50,000 Plant (accumulated depreciation $300,000) 200,000 220,000 Additional information in relation to the acquisition a. All the inventory on hand at 1 January 2016 was sold by 31 December 2016. b. The plant has a remaining useful life of 12 years and will be depreciated on a straight-line basis. c. In December 2017 Anderson Ltd impaired the goodwill from the acquisition of Trinity Ltd by $10,000. A further impairment of $16,125 was made in December 2018. d. Trinity Ltd transferred $30,000 from its pre-acquisition retained earnings to the General reserve account, in December 2018. e. The tax rate is 30% Additional information regarding intragroup and other transactions Transactions for the 2016 financial year a. Trinity Ltd’s after-tax profit was $34,000. b. There were no intragroup transactions during the period. Transactions for the 2017 financial year a. Trinity Ltd’s after-tax profit was $30,000. b. In November 2017, Trinity Ltd sold inventory to Anderson Ltd for $27,000, and all inventory was still on hand as of 31 December 2017. The sale price included a 20% mark-up on the cost of sales. Transactions for the 2018 financial year a. Trinity Ltd’s after-tax profit was $33,000. b. Anderson Ltd on sold all the remaining inventory from December 2017 by the end of February 2018. c. Anderson Ltd sold inventory to Trinity Ltd that had cost $7,800 for $ 9,000. As of 31 December 2018, 20% of that inventory was still held by Trinity Ltd. d. On 1 January 2018, Trinity Ltd sold a piece of equipment to Anderson Ltd for $15,000. The carrying value for Trinity Ltd was $12,000. The remaining useful life of the equipment is five years. Anderson Ltd continued to depreciate the equipment on a straight-line basis. e. During 2018, Trinity Ltd revalued land acquired post-acquisition by $40,000. The financial information of both companies on 31 December 2018 has been uploaded to a consolidating worksheet as follows: Anderson Ltd Trinity Ltd Sales Revenue 80,000 20,000 Cost of Sales (20,000) (8,000) Other Expenses (12,000) (6,000) Other revenue 31,000 8,500 Operating Profit 79,000 14,500 Income tax expense (17,000) (3,500) Profit after tax 62,000 11,000 Retained earnings – 1 July 2018 200,000 160,000 Dividends declared (40,000) (8,000) Retained earnings – 30 June 2019 222,000 163,000 Share Capital 800,000 300,000 General Reserve 80,000 Asset revaluation surplus – 1 July 2018 64,000 Revaluation of assets 28,000 Asset revaluation surplus – 30 June 2019 64,000 28,000 Total equity 1,086,000 571,000 Current Liabilities Trade and other payable 21,000 8,000 Non-current liabilities Loans 120,000 55,000 Deferred tax liability 12,000 Total non-current liabilities 120,000 67,000 Total Liabilities 141,000 75,000 Total liabilities and equity 1,227,000 646,000 Current assets Cash 10,000 7,000 Trade and other receivables 40,000 48,000 Inventory 95,000 80,000 Total current assets 145,000 135,000 Non-current assets Land 300,000 221,000 Plant 600,000 500,000 Accumulated depreciation
Presented Below Is Information Related To The Operations Of Cuddle Bear Company. (a) Complete
Presented below is information related to the operations of Cuddle Bear Company. (a) Complete the Horizontal
Description GeneralProducts Inc. Is Incorporated In Nevada, USA On Jan 1st 2013 To Take
Description GeneralProducts Inc. is incorporated in Nevada, USA on Jan 1st 2013 to take over a local retail chain. The objective of the company is to supply goods of everyday use to customers at the most competitive prices. GeneralProducts has established a chain of stores throughout USA. The retail operations of the company are so designed that customers can shop seamlessly in stores and online. Balance Sheet of GeneralProducts Inc. on December 31, 2015 ASSETS Current Assets Cash and Cash Equivalent 11,980 Accounts Receivables 20,520 Inventory 317,060 Inventory of Premiums (@0.10 per premium) 660 Total Current Assets 350,220 LONG TERM ASSETS Investments 66,775 Property Plant and Equipment 750,000 Less Accumulated Depreciation 90,000 660,000 Total Long Term Assets 726,775 INTANGIBLE ASSETS Trade Marks 190,000 Total Assets 1,266,995 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities Accounts Payable 50,772 Liability for Premiums and Coupons 550 5% Short Term Notes Payable due on March 31, 2016 8,000 Accrued Interest on 6% Bonds Payable 3,000 Total Current Liabilities 62,272 6% Bonds Payable due 2020 100,000 Unamortized Discount on Bonds Payable 6,732 93,268 Total Liabilities 155,540 Stockholder’s Equity Common Stock 125,000 shares, par value $1 authorized 100,000 shares issued and outstanding 130,000 Paid in Capital in Excess of Par 946,000 Retained Earnings 35,455 Total Stockholders’ Equity 1,111,455 Total Liabilities and Stockholders’ Equity 1,266,995 GeneralProducts provides us financial and business related data for 2016 below. Trades Marks were acquired for $200,000 in 2015.Estimated useful at the time of acquisition was 20 years There was a litigation brought out by a competitor against the Trade Mark. GeneralProducts could successfully defend this litigation at a cost of $ 45,000. New useful life of Trade Mark is estimated to be 25 years from the date of acquisition. All sales are on credit and total $ 940,560. COGS are $780,650. Included in the total sales of $940,560 are the sales of GeneralProducts brand 6000 soap powder boxes GeneralProducts includes one coupon in every soap powder box. Customers can redeem 4 coupons for one Kitchen utensil. Based on past experience 60% of the coupons are redeemed by customers. During 2016 3,400 coupons were redeemed. Purchase of premiums during 2016 total 1,000 premiums @ $1.10 each on credit. 6% Bonds Payable are issued on Jan 1 2015 to yield 8% interest. Interest is paid semi-annualy on Jan 1st and June 30th. General Products can redeem these Bonds any time after June 30,2016 @ 101. To take advantage of lower interest rates and to finance the redemption of 6% Bonds on Sept.1st 2016, GeneralProducts issued 5%Bonds in the face value of $100,000 to yield 6% The maturity period of these 5% Bonds is 10 years and interest is paid semi-annually on 1st Jan and 30th June. The proceeds from the issue of 5% Bonds are used to redeem 6% Bonds Payable @ 101 on Sept.1st 2016. Selling Administrative Expenses excluding depreciation are $87,345. PP
Montoure Company Uses A Periodic Inventory System. It Entered Into The Following Calendar-year Purchases
Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 630 units @ $50.00 per unit Feb. 10 Purchase 415 units @ $47.00 per unit Mar. 13 Purchase 215 units @ $32.00 per unit Mar. 15 Sales 815 units @ $80.00 per unit Aug. 21 Purchase 130 units @ $55.00 per unit Sept. 5 Purchase 530 units @ $51.00 per unit Sept. 10 Sales 660 units @ $80.00 per unit Totals 1,920 units 1,475 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification units sold consist of 630 units from beginning inventory, 285 from the February 10 purchase, 215 from the March 13 purchase, 65 from the August 21 purchase, and 280 from the September 5 purchase. (Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.) 4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.)
Cruz Company Uses LIFO For Inventory Costing And Reports The Following Financial Data. It
Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison purposes. 2017 2016 LIFO inventory $ 300 $ 250 LIFO cost of goods sold 880 820 FIFO inventory 370 275 FIFO cost of goods sold 835 — Current assets (using LIFO) 360 330 Current liabilities 165 145 1. Compute its current ratio, inventory turnover, and days’ sales in inventory for 2017 using (a) LIFO numbers and (b) FIFO numbers. (Round your answers to 1 decimal place.)
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