INTERMEDIATE ACCOUNTING II/ Intermediate Accounting, Spiceland/Sepe/Nelson Re: Judgment Case 18-5 Requirement 1. The two alternatives Alcoa has for accounting for the repurchase of it’s shares are: 1) The shares can be formally retired. 2) The shares can be named treasury stock Either way, total shareholders’ equity remains the same. Cash is used to repurchase common stock so the effect is to reduce both cash and shareholders’ equity. This choice does, however, affect how individual shareholders’ accounts are reported in the balance sheet.
Industry Stock out rate of 8% 2. 50% customers choose not to buy in case of stock outs 3. Annual revenues of $800M 4. Gross margin of 50% Exhibit 2 depicts the impact of the consolidation of the warehouse operations. In this case, the only cost saving is approximately $500k.
Comparing the gross sales forecast to actual sales, this results in a loss of $309,445 in 2006 and $420,445 in 2007. [pic] Now, use the data in Table 1 and regression analysis, to compute the loss for Kwik Lube stations during the last two years. How accurate can results claim to be? |(untitled) Summary | |Measure |Value | |Error Measures | | |Bias (Mean Error) |0 | |MAD (Mean Absolute Deviation) |29611.49 | |MSE (Mean Squared Error) |1284291000 | |Standard Error (denom=n-2-0=6) |41381.01 | |MAPE (Mean Absolute Percent Error) |.03 | |Regression line | | |Dpndnt var, Y = 89527.02 | | |+ 2.78 * X1 | | |Statistics | | |Correlation coefficient |.99 | |Coefficient of determination (r^2) |.97 | Was it worth $30,000 to perform the marketing research that obtained the data in Table 1? If you were trying to determine if the return on the investment of $30,000 was worth the monetary loss alone, the answer is no.
According to the text, the exception amount for active owners is phased out as income increases: the $25,000 maximum exception amount is phased out by 50 cents for every dollar the taxpayer’s adjusted gross income (before considering the rental loss) exceeds $100,000. 120,000-100,000*.5= 10,000 phase out 25,000-10,000= 15,000 total deductible loss; Alexa can still deduct the $2,400 because her loss is less than the 15,000. New AGI 120,000-2,400= $117,600 d. Assume that Alexa’s AGI from other sources is $200,000. This consists of $150,000 salary, $10,000 of dividends, and $25,000 of
What is most revealing about this analysis is that the impact of decrease in GDP seems to be decreasing over time. In Chart 2 the scatter plot shows the output growth and the change in unemployment from 1949 to 2006. The points for 2003 through 2006 all reside far beneath lie the estimated regression line. Across this time period, the relationship between unemployment and GDP growth was nearly zero. This fact contradicts the normal functioning of Okun’s law that would normally display a negative correlation between unemployment and GDP.
Two accounts that had been written off as uncollectible in 2005 were collected in 2006. One account for $2,108 was $1,566 was made by the Hollowell Company on another account that originally had amounted to $2,486. The controller would be paid in full because reliable reports were circulating that the trustee in bankruptcy for the Hollowell Company the dollar. 5. The Allowance for Bad Debts was adjusted to equal 3% of the balance in Accounts Receivable at the end of the yea Questions: 1.
The equal probability of the copier breaking down before or after is the average time between breakdowns. So z^2/36 = 1/2. Solving gives z = 4.243 weeks. The uniform distribution for the number of copies sold per day, standard number of copies sold will be the average of the high and low estimates, which is 5000 copies per day. At 10 cents each, the expected revenue of $500 per day, and the amount will be lost while the copier is broken.
This can make the financial statements misleading. Both methods are way of recording transactions the only difference is when the number hits a company’s bottom line. An account may use the cash basis accounting when the company’s is small and the books are kept on the actual flow of cash coming in and out. This is used normally with a company with no inventory or a sole proprietor. They typically use this method because it requires fewer journal entries for closing an accounting period and creating financial statements.
It will be depreciated under MACRS using a 5-year recovery period. At the end of 5 years, the machine can be sold to net $400,000 before taxes. If this machine is acquired, it is anticipated that the following current account changes would result. Cash + $25,000 Accounts Receivable + 120,000 Inventories - 20,000 Accounts Payable + 35,000 Press B – This press is not as sophisticated as press A. It costs $640,000 and requires $20,000 in
The LM curve would not be applicable seeing as though the decision to reduce the federal funds is a monetary policy affect the IS curve solely. It would no longer be an upward sloping curve because of the reduction of interest rates has not increased the