Get an AnswerEarnings announcements by companies are closely followed by, and frequently result in, share price revisions. Two issues should come to mind. First, earnings announcements concern past periods, If the market values stocks based on expectations of the future, why are numbers summarizing past performance relevant? Second, these announcements concern accounting earnings. Going to chapter 2 in the Ross text, such earnings may have little to do with cash flow – so, again, why are they relevant?Smart Writing ServicesOctober 25, 2017 7:56 amOctober 25, 2017
Get an AnswerClassify the following events as mostly systematic or mostly unsystematic and tell us why. Is the distinction clear in each case? a) Short term interest rates increase unexpectedly b) The interest rate a company pays on its short term debt borrowing is increased by its bank. c) Oil prices unexpectedly decline d) An oil tanker ruptures, creating a large oil spill e) A manufacturer loses a multimillion dollar product liability suit f) A Supreme Court decision substantially broadens producer liability for injuries suffered by product users.Smart Writing ServicesOctober 25, 2017 7:56 amOctober 25, 2017
Get an AnswerPearce Manufacturing Inc. incurred the following costs in February: Direct Labor $40,000 Indirect Labor $15,000 Administrative Salaries $8,000 Raw materials purchased $10,000 Indirect materials used $4,000 Advertising Costs $1,000 Factory Rent $4,000 Factory Depreciation $2,000 Administrative Rent $3,000 Administrative Depreciation $1,000 In addtion,the following information is also available Beginning / Ending Raw Materials $2,000 / $4,000 Work-in-process $25,000 / $18,000 Finished Goods $4,000 / $12,000 Number of units produced 10,000 units Number of units sold (sales price of $25 per unit) 9,000 units A) Calculate total period costs. B) Calculate raw material used. C) Calculate cost of goods manufactured.Smart Writing ServicesOctober 25, 2017 7:56 amOctober 25, 2017
Get an AnswerExtreme Sport, Inc. uses the allowance method to account for bad debits. During 2010, the company recorded $560,000 in credit sales. At the end of 2010 before adjustments, account balances were accounts receivable $180,00, and allowance for uncollectable accounts ($900), If bad debt expense is estimated to be 3% of credit sales, how much bad debts expense will be on that year-end income statement?Smart Writing ServicesOctober 25, 2017 7:56 amOctober 25, 2017
Get an AnswerA company started the year with accounts receivable of $15,00 and an allowance for uncollectable accounts of $(1,500). During the year, sales (all account) were $110,000 and cash collections for sales amounted to $105,000. Also, $1,000 worth of uncollectable accounts were specifically identified and written off. Then, at year-end, the company estimated that 10% of ending accounts receivable would be collected. A. What amount will be shown on the year-end income statement for bad debt expense? B. What is the balance in the allowance for uncollectable accounts after all adjustments have been made?Smart Writing ServicesOctober 25, 2017 7:56 amOctober 25, 2017
Get an AnswerRoss Company had the following balances: Receivables, net (December 31, 2010) $200,000 Receivables, net (December, 2009) $250,000 Sales (all credit) (December 31, 2010) $1,600,000 Sales (all credit) (December 31, 2009) $1,000,000 a. Calculate the accounts receivable turnover ratio for 2010. b. Calculate the average number of days to collect.Smart Writing ServicesOctober 25, 2017 7:56 amOctober 25, 2017
Get an AnswerYou have started a business that has now been going for a couple of years. Due to the increased volume in sales, you have started noticing more bad debt and want to use the allowance method for estimating bad debt. Would you use the percentage of sales method or the percentage of accounts receivable method and why?Smart Writing ServicesOctober 25, 2017 7:56 amOctober 25, 2017
Get an AnswerQuality and price equals value. When purchasing a car, does a BMW 500 series that costs $42,000 have more value than a Ford Taurus that cost $25,000? Or, in the mind of the consumer, could they have equal value?Smart Writing ServicesOctober 25, 2017 7:56 amOctober 25, 2017
Get an AnswerBuiness and Finance Analyse and interpret financial statements from the perspectives of different stakeholders Critically analyse the issues and debates concerning the financing and investment decisions of firmsSmart Writing ServicesOctober 25, 2017 7:56 amOctober 25, 2017
Get an AnswerThe company’s CEO just returned from a seminar on management accounting and some new tools that can be used to assist in management of the business. One of the new tools she learned about is referred to as contribution format income statements. It is time for the accounting department to prepare the month-end income statement. In the past, the standard format income statement, as shown below, has been used. But for the first time, the CEO has asked that the contribution format be used instead. While most of the different expense categories are easy to analyze, the utility expense seems to display characteristics of both variable costs and fixed costs. To help prepare this income statement format, the accounting department collected data from the past 12 months. This data included actual utility costs as compared to each month’s business volume. Some of it is shown below. History of Utility Expenses Utility Costs Comment January $10,000 closed the entire month for repairs February $11,000 produced 5,000 widgets March $10,600 produced 3,000 widgets April $11,600 produced 8,000 widgets Submit 1 Excel file including the following information: • Even when the plant was shut down for a month, what was the utility expense that month? • In February, what was the amount of utilities that was fixed, and what portion was variable? • Based on the rest of the data, what is the variable portion of utility costs per unit in February? • If June’s expected units produced are 9,000, what would the expected utility costs be? Show your calculations. o Prepare a contribution format income statement: o use this month’s standard formatted income statement below o use the History of Utility Expenses provided o show as many calculations as possibleSmart Writing ServicesOctober 25, 2017 7:56 amOctober 25, 2017
