During 2007 and 2008 Stator reported Net Income of $25,000 and $15,000 and paid dividends $10,000 and $12,000, respectively. Rotor uses the equity method a. What amount of differential will be amortized annually b. What will be the balance in the investment account on Dec 31, 2007? c. What amount of investment income will be reported by Rotor for the year 2007?
ACC 291 Final Exam Question Answers Multiple Choice Question 86 An aging of a company's accounts receivable indicates that $4,500 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a • debit to Bad Debt Expense for $4,500. • debit to Bad Debt Expense for $3,300. • credit to Allowance for Doubtful Accounts for $4,500. • debit to Allowance for Doubtful Accounts for $3,300.
Use the cost information Jennifer has assembled to construct a forecast of cost of goods sold and operating expenses for 2004 through 2009. Assume first that the Bernoulli will be introduced, with its new cost structure, one year from now, and then calculate a cost forecast assuming that the $18 million is not provided for development of the new product. 3. Using the information developed for Questions 1 and 2, develop a discounted cash flow analysis for the Bernoulli division for 2004 through 2009. Working's board has asked for net present value and internal rate of the return when making decisions in the past.
The calculations illustrated on the next pages will refer to the Balance Sheet and Income Statement which follow. Balance Sheet 2004 2005 2004 2005 Assets USD USD Liabilities and Equity USD USD Current Assets Current Liabilities Notes payable 9 800 10 700 Cash 12 165 18 380 Accounts payable 21 500 24 350 Accounts Recievable 8 620 11 182 Total Current Liabilities 31 300 35 050 Inventory 18 140 24 894 Total Current Assets 38 925 54 456 Long-Term Liabilities LT debt 53 000 61 000 Total liabilities 84 300 96 050 Net Fixed Assets 105 000 134 000 Owner's equity New equity 0 10 000 Retained Earnings 59 625 82 406 Total equity 59 625 92 406 Total Assets 143 925 188 456 Total Liab. and Equity 143 925 188 456 Income Statement 2004 2005 USD USD Sales 165 390,0 201 600,0 COGS 84 310,0 106 450,0 Depreciation 23 800,0 26 900,0 Selling and adm. Exp 16 580,0 21 640,0 EBIT 40 700,0 46 610,0 Interest paid 5 180,0 5 930,0 EBT 35 520,0 40 680,0 Taxes 7 104,0 8 136,0 Net income 28 416,0 32 544,0 Dividends paid 8 524,8 9 763,2 Addition to RE 19 891,2 22 780,8 Operating Cash Flow measures the cash flows generated by the firm's main operations. Operating Cash Flow can be determined as follows: Operating Cash Flow= EBIT + Depreciation-Taxes (Ross, Westerfield, Jaffe, 2006). Then, using the figures from the company’s Balance sheet and Income statement we’ll find the Sunset Board’s Operating Cash
Answer: ORDER_NUM | ORDER_DATE | CUSTOMER_NUM | CUSTOMER_NAME | 21608 | 10/20/2007 | 148 | Al's Appliance and Sport | 21610 | 10/20/2007 | 356 | Ferguson's | 21613 | 10/21/2007 | 408 | The Everything Shop | 21614 | 10/21/2007 | 282 | Brookings Direct | 21617 | 10/23/2007 | 608 | Johnson's Department Store | 21619 | 10/23/2007 | 148 | Al's Appliance and Sport | 21623 | 10/23/2007 | 608 | Johnson's Department Store | 8. For each order placed on October 21, 2007, list the order number, customer number, and customer name. Answer: ORDER_NUM | CUSTOMER_NUM | CUSTOMER_NAME | 21613 | 408 | The Everything Shop | 21614 | 282 | Brookings Direct | 9. List the sales rep number and name for
When taxes are considered, the effective costs are affected by interest paid and the amortization of points on the loan. This analysis will require you to compare only before-tax costs. Bloomberg.com provides a mortgage calculator that allows you to compare the effective costs on alternative mortgages. You are considering three alternatives for a $250,000 mortgage. Assume that the mortgage will start in December, 2002.
Which of the following accounts is NOT used with the GROSS method of recording sales? a. Sales Discounts b. Sales c. Accounts Receivable d. Sales Discounts Lost PAGE 2 For the following set of questions, use the information below from the Perry Co. 1995 income statement: Purchases $85,000 Transportation-In 1,200 Inventory, January 1, 1995 16,500 Inventory, December 31, 1995 18,800 Purchase Returns & Allowances 1,400 4. The amount that Perry would report as Cost of Goods Purchased in its 1995 income statement is: a.
“The 2009 HHS Poverty Guidelines.” Accessed July 19, 2009b. http://aspe.hhs.gov/POVERTY/09poverty.shtml. U.S. Department of Labor. Bureau of Labor Statistics. “Business Employment Dynamics Size Class Data: Questions and Answers.” December 15, 2005a.
3) A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a A. credit to Accumulated Depreciation 4) Presenting consolidated financial statements this year when statements of individual companies were presented last year is an accounting change that should be reported by restating the financial statements of all prior periods presented. 13) If a short-term obligation is excluded from current liabilities because of refinancing, the footnote to the financial statements describing this event should include all of the following information EXCEPT: the number of financing institutions that refused to refinance the debt, if any 14) Stock dividends distributable should be classified on the balance sheet as an item of stockholders' equity. 15) Which of the following items is a current liability? A long-term debt maturing currently, which is to be paid with cash in a sinking fund b.
The principal payment on a loan due in the next 12 months C. The balloon portion of long-term debt D. An example of a significant noncash transaction E. None of these 41) The accounting equation is A. Debits = Credits B. Assets = Liabilities + Owners’ Equity C. Revenues - Cost of Goods Sold = Gross Margin D. Recording all expenses incurred in generating the revenues of the period E. The same as the book value 42) The reason you need to have an Allowance for Doubtful Accounts is A. so your debits = your credits. B. it is one of the Laws of the Universe. C. to confuse and bewilder accounting students. D. adherence to the matching principle requires it.