c) Prepare all the journal entries for Kingdom for 2012. Assume a calendar year fiscal year. Correct Answer: The lease is a sales-type lease because: (1) the lease term exceeds 75% of the asset’s estimated economic life, (2) collectibility of payments is reasonably assured and there are no further costs to be incurred, and (3) Kingdom Leasing Inc. realized
Although the customers only needed the shipment the following year, this would be a way to exceed the targeted budget. Instead of offering the customers an early discount for receiving the merchandise earlier, Campbell sent the merchandise and reported the sales to be included in the financial reports. As a result of this procedure, the reported sales for the fourth quarter exceeded the budgeted amount with $80,000.00. The actual sales revenue for the year was over with $14,000.00. The internal auditors questioned why the two shipments were done before December 31, since the requested dates were in the following year.
2) The sales budget calculates how much the company will spend to produce the required number of units. The president should do further consideration in terms of capital and labor costs. Does company have an adequate capital to produce the required number of units? And if the answer is no, they should look for other alternatives such as borrowing and others. 3) The sales budget is to estimate the profitability.
There is only a 1.28% chance that b = 0, which is better than the 10 percent level required by the marketing director. d. The exact level of significance of is 0.0927. There is a 9.27% chance that rivals’ spending on advertising does not affect Vanguard’s sales (i.e., b = 0), which is just barely better than the 10 percent level required by the marketing director. e. About 78 percent of the variation in sales remains unexplained. Find additional explanatory variables that have a significant affect on S. The manager might try adding the price of its detergent and the
Operating expenses- total operating expenses had declined in period 8 of $1,273,867 and have had a projection n the budget for period 9 of $1,026,483. This is unrealistic due to the fact that sales were anticipated to increase. The utilities and services have also been duplicated within the budget for operating expenses. It is listed under Facility/General operations cost then under expense. This duplication should be deleted as it is not necessary.
There is an inverse relationship between the number of tents inspected and the inspection cost per unit. Since the total inspection cost is fixed, the cost per unit will increase as the number of tents inspected decreases. Similarly, the cost per unit will decrease as the number of tents inspected increases. C. The inspector’s salary is an indirect cost. Since it is not related to the number of units inspected, it cannot be traced to any particular unit.
Financial Analysis- Task 5 A. 1. Some key points of the company’s financial picture that could impact the bank officer’s decision are as follows: while there is an increase in gross profits from year 12 to 13, there is a decrease from year 13 to 14, also while the payroll and executive compensations steadily increases from year 12 to 14, advertising basically decreases, and services and utilities continue to increase as well as expenses in general. The operating income also has a major decrease from year 12 to 14, which is not good for the company as it indicates what is available to the company before a few other items need to be paid, such as preferred stock dividends and income taxes, which needs to be increasing for the company, not
One of our major goals this year is to avoid expenses. That is why there is a 10 percent reduction in personnel and administration cost. In order for us to be effective cost must be avoided. Advertising was not chosen due to the cap put onto the publications/public information expenses. We cannot afford and will not be approved for extra advertising without research that proves that this advertising will increase revenues more than the cost.
Therefore, it is nearly the same in every company. The bonuses as a percentage of base salaries also shows that. The jobs with low base salaries have the bonus percentage higher than the high base jobs to motivate employees who have lower wages. 3. I saw no value of stock options in the website.
“Back when there was twelve people paying in to support one it was fine, but now when you have three people paying in to support one, what do you do; raise taxes or cut benefits? (Lowery, Jarrod)” The two answers to fix Social Security will hurt some people. For example, if taxes was raised my generation would probably never see the benefits of Social Security because they would be cut out due to the tax prices being raised. If benefits were lowered then that would affect the older generation, because they would not be able to pay for the bills they may receive when Social Security is the only income that they receive in their household. Studies show that people eighty and older Social Security provides seventy percent of their income.