B. C. D. 2 4. A summary of Max Company’s December 31, 2009, accounts receivable aging schedule is presented below: Age Group 0 - 60 days 61 - 90 days 91 - 120 days over 120 days Amount $60,000 22,000 3,000 1,000 Estimated Percentage Uncollectible 0.5% 1% 10% 50% On January 1, 2009, the allowance for uncollectible accounts had a credit balance of $1,000. During 2009, $950 of accounts receivable were written off as uncollectible. What is Max Company’s uncollectible accounts expense for 2009? A.
True False The job cost sheet is used in both job-order and process costing. True False Byklea Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 200 units. The costs and percentage completion of these units in beginning inventory were: A total of 7,000 units were started and 6,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 90% complete with respect to materials and 45% complete with respect to conversion costs.
4. Norton Co., a U.S. corporation, sold inventory on December 1, 2011, with payment of 10,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows: What amount of foreign exchange gain or loss should be recorded on January 30? A. $1,516 gain.
The compensation expense for 2011 will be (Round off turnover calculations to three decimal places and answer to the nearest dollar.) ** $77,468 | $80,022 | $82,575 | $160,043 | 4. On January 1, 2010, Wilson Corporation granted Emelia Walker, its president, a compensatory stock option plan to purchase 8,000 shares of Wilson's $10 par common stock. The option price is $25 per share and the option has a fair value of $7 per option, which is exercisable on January 1, 2014, after four years of service. How much compensation expense should Wilson recognize on December 31, 2010?
Part (b) Calculate the seasonal forecast of sales for February of Year 3. Part (c) Which forecast do you think is most accurate and why? 11. Question : (TCO 6) Davis Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project A Project B Initial Investment $800,000 $650,000 Annual Net Income $50,000 45,000 Annual Cash Inflow $220,000 $200,000 Salvage Value $0 $0 Estimated Useful Life 5 years 4 years The company requires a 10% rate of return on all new investments.
Fair value = 4.0 million x 3.3 = 13,200,000 P = A/ (1+nr) =4 million / (1 + 4 x .05) = 4 million / 1.2 = 3.3 Impairment value = fair value minus book value = 13,200,000 - -4,000,000 = 17,200,000 B) Repeat part A but instead assume that (1) the estimated remaining useful life is 10 years, (2) the estimated annual cash flows $2,720,000 per year, and (3) the appropriate discount rate is 6%. The impairment loss value that should be reported for the five stores at the end of fiscal 2011 is $4,624,064,000,000 Carrying amount = 36 million – (10 x 10 million) = (-64 million) - book value Undiscounted expected cash flow = 10 x 2,720,000 = 27,200,000 for all years. Fair value = 2,720,000 x 1,700,000 = 4,624,000,000,000 P= A / (1 + nr) =2,720,000 / (1 + 10 x .06) = 2,720,000 / 1.6 = 1,700,000 Impairment value = fair value – book value = 4,624,000,000,000 - -64 million = 4,624,064,000,000 Analysis Assume that you are a financial analyst and you participate in a conference call with Electroboy management in early 2012 (before Electroboy closes the books on fiscal 2011). During the conference call, you learn that management is considering selling the five stores, but the sale won’t likely be completed until the second quarter of fiscal 2012.
Other costs include repair and maintenance, sales and production expenses. Regular monthly expenses are estimated at $1,415.74 for paying the employee salaries and other regular business expenses. The Business is expected to generate $136,000.00 in the first year and gross profit is expected to be $107,011.20. Customers. There is an average of 1,395,000 tax returns filed in Iowa every year (Average Refund by State).
The Starr Co. just paid a dividend of $1.55 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely. Investors require a return of 14 percent on the stock. a. What is the current price?
What is the total amount of profit for your IBM investment? 2. Calculating Rate of Return. Assume that at the beginning of the year, you purchase an investment for $8,000 that pays $100 annual income. Also assume the investment’s value has decreased to $7,400 by the end of the year.
Required: Compute the company's predetermined overhead rate for the recently completed year Solution: Predetermined overhead rate = Estimated total fixed manufacturing overhead/ Labor hours + estimated variable manufacturing overhead = $584,320/32,000 + $7.17 = $25.43 (TCO C) Enciso Corporation is preparing its cash budget for November. The budgeted beginning cash balance is $31,000. Budgeted cash receipts total $135,000 and budgeted cash disbursements total $141,000. The desired ending cash balance is $50,000. The company can borrow up to $100,000 at any time from a local bank, with interest not due until the following month.