Master College Concepts with Expert Q&A and Solutions

Ski Powder Resort ends its fiscal year on April 30. The business adjusts its accounts monthly, but closes them only at year-end (April 30). The resort's busy season is from December 1 through March 31. Adrian Pride, the resort's chief financial officer, keeps a close watch on Lift Ticket Revenue and Cash. The balances of these accounts at the end of each of the last five months are as follows:November 30 - Lift ticket revenue = $26000, Cash = $8000December 31 - Lift ticket revenue = $200,000, Cash = $63000January 31 - Lift ticket revenue = $680,000, Cash = $67,000February 28 - Lift ticket revenue = $760000, Cash = $97,000March 31 - Lift ticket revenue = $880,000, Cash = $110,000Mr. Pride prepares income statements and balance sheets for the resort. Assuming they are prepared for:a. The month ended February 28.1. Indicate what amount will be shown in the statements for Lift Ticket Revenue?b. The entire "busy season to date" that is, December 1 through March 31.1. Indicate what amounts will be shown in the statements for Lift Ticket Revenue.
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Before World War I, $20.75 was needed to buy one ounce of gold. If, at the same time, one ounce of gold could be purchased in France for , what was the exchange rate between French francs and U.S. dollars? The implied French franc/US dollar exchange rate is FF________$The implied US dollar/French franc exchange rate is $ ________. (Round to four decimal places.)
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According to its original plan, Topeka Consulting Services Company plans to charge its customers for service at $120 per hour in Year 2. The company president expects consulting services provided to customers to reach 45,000 hours at that rate. The marketing manager, however, argues that actual results may range from 40,000 hours to 50,000 hours because of market uncertainty. Topeka's standard variable cost is $45 per hour, and its standard fixed cost is $1,350,000. Required:Develop flexible budgets based on the assumptions of service levels at 40,000 hours, 45,000 hours, and 50,000 hours.
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A tank with it's insulation not fully in tact has a volume of 0.07 cubic meters. Initially the tank contains 0.02 kg of helium at 105 kPa. The tank is filled with helium from a supply line at 1000 kPa and 50 Celsius. The filling process ends when the pressure of helium in the tank reaches the supply line pressure, at which time the temperature of the helium in the tank is 430 K. Determine the following: a. Initial temperature of the helium in the tank. b. The amount of mass added to the tank. c. The change in energy inside the tank. d. The heat loss from the tank a.
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Firms use economic analyses to better understand the overall outlook for the economy and how economic changes will impact the firm.a. Trueb. False
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At December 31, 2018, Oldman Engineerings liabilities included the following:$6 million of outstanding bonds that mature in 2025, but which are currently callable by bondholders. However, because current market interest rates are much higher than the coupon rate on the bonds, the bondholders are not expected exercise the call option.A $2 million mortgage on its manufacturing building, which is due in June of 2019. However, on January 28th, before the issuance of 2018 financial statements, Oldman refinanced this mortgage by making a down payment of $400k and taking out a new mortgage for $1.6 million.A $1.2 million note payable from the companys bank which is due on March 31, 2019. The note is secured by the companys inventory and accounts receivable. The company expects to refinance this note, but has not yet started the process to do so.For each of the liabilities above, show how the amount would be classified in the December 2018 balance sheet: Current Liability Non-Current Liabilitya.b.c.
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Jasper Furnishings has $300 million in sales. The company expects that its sales will increase 12% this year. Jasper's CFO uses a simple linear regression to forecast the company's inventory level for a given level of projected sales. On the basis of recent history, the estimated relationship between inventories and sales (in millions of dollars) is as follows:Inventories=$25+0.125(Sales). Given the estimated sales forecast and the estimated relationship between inventories and sales, what are your forecasts of the companys year-end inventory level and its inventory turnover ratio?
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A food development company is interested in making on-the-go powder-based snacks in which consumers can "just add water" before eating. During market tests there are complaints that the powder does not dissolve well in water.If you were a food scientist, how might you modify the formula so that it will more easily dissolve in water? Provide your answer in 1-2 complete sentences.
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Among adults twenty-one years of age and older, roughly half are college graduates. Despite having a much higher rate of colleges and universities per capita than European countries; the U.S. has a lower rate of college graduation per capita. Every U.S. state has at least twenty colleges or universities within its borders. Among adults twenty-one years of age and older, roughly one in four is a college graduate. Although the U.S. has a lower number of colleges and universities per capita than Europe, it has a much higher rate of college graduation per capita.a. Trueb. False
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The General Fund of the City of Davis Fort has a total fund balance of $1,500,000 as of its fiscal year-end, December 31, 2019. Please review the following additional information regarding its General Fund activities and determine how much fund balance should be classified as nonspendable, restricted, committed, assigned, and unassigned. Show the calculations necessary for making the fund balance determinations. a. The balance sheet of the City of Davis Fort showed $200,000 of inventory on December 31, 2019. b. The highest level of decision making authority for the city (the city council) passed an ordinance that any royalty payments received from oil production on city property must be used for city park maintenance. At year-end, the city had not spent $150,000 of the oil royalty proceeds that it had received.
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Crane Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $1,280 (including freight) from Catlin Publishers, terms 2/10, n/30. 3. Sold books on account to Garfunkel Bookstore for $1,400. The cost of the merchandise sold was $800. 6. Received $80 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full. 15. Received payment in full from Garfunkel Bookstore. 17. Sold books on account to Bell Tower for $1,100, terms of 2/10, n/30. The cost of the merchandise sold was $950. 20. Purchased books on account for $800 from Priceless Book Publishers, terms 1/15, n/30. 24. Received payment in full, less discount from Bell Tower. 26. Paid Priceless Book Publishers in full. 28. Sold books on account to General Bookstore for $1,550. The cost of the merchandise sold was $800. 30. Granted General Bookstore $200 credit for books returned costing $70.Required:Journalize the transactions for the month of June for Powell Warehouse, using a perpetual inventory system
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The community of Artic natives does not deserve special recompense for our companys use of their indigenous lands. They accuse us of exploiting the land and disrespecting the natural habitat. But their own hunting practices involve the slaughter of seals. Imagine if you were clubbed to death in such a way! Doesnt the thought of their suffering break your heart?a. Does it commit a fallacy?b. Does it commit an appeal to pity fallacy?
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Cinci Co. leased equipment for its entire 10-year useful life, agreeing to pay $50,000 at the start of the lease term on December 31, Year 1, and $50,000 annually on each December 31 for the next 9 years. The present value on December 31, Year 1, of the ten lease payments was $337,951. The interest rate for both the lessee and the lessor was 10%. The December 31, Year 1, present value of the lease payments using Allen's incremental borrowing rate of 12% was $298,500. Allen made timely first and second lease payments. Required:What amount should Allen report as capital lease liability in its December 31, Year 2, balance sheet?
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A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.39 a minute for daytime calls and $.19 a minute for evening calls. Plan B has a charge of $.49 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 225 minutes of calls allowed per month and a charge of $.36 per minute beyond that, day or evening.Required:a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month. b. If the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal?c. Suppose that the agent expects both daytime and evening calls. At what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans A and B?
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Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Suppose that Schell has conducted further research into its overhead and potential cost drivers. As a result, the company has compiled the following detailed information, breaking total overhead into three cost pools: Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Standard Floor Mat Line Quantity/Amount Consumed by Deluxe Floor Mat Line Material handling Number of moves $3,750 30 moves 70 moves Quality control Number of inspections $13,860 400 inspections 600 inspections Machine maintenance Number of machine hours $21,450 4,150 machine hours 3,000 machine hoursRequired :a. Calculate the activity rates for each cost pool assuming Schell uses an ABC system.b. Calculate the amount of overhead that Schell will assign to the Standard floor mat line.c. Determine the amount of overhead Schell will assign to the Deluxe product line.
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The Greeson Clothes Company produced 25,000 units during June of the current year. The Cutting Department used 6,380 direct labor hours at an actual rate of $10.90 per hour. The Sewing Department used 9,875 direct labor hours at an actual rate of $11.12 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $11.00. The standard labor time for the Cutting and Sewing departments is 0.25 hour and 0.4 hour per unit, respectively.a. Determine the direct labor rate variance, direct labor time variance and total direct labor cost variance for the Cutting Department and Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Cutting Department Sewing DepartmentRate variance $ SelectFavorableUnfavorableItem 2 $ SelectFavorableUnfavorableItem 4Time variance $ SelectFavorableUnfavorableItem 6 $ SelectFavorableUnfavorableItem 8Total direct labor cost variance $ SelectFavorableUnfavorableItem 10 $SelectFavorableUnfavorableItem 12
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The following statements contains some analysis of policies that address the death penalty. Categorize each statement as positive or normative. a. Killing people is bad. b. By executing convicted murderers, the government may deter potential murderers and, therefore, decrease the murder rate. c. It is immoral for the government to kill people. d. The government should not execute anyone, even murderers.
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Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit within 90 days. In 2014, Thomas shipped and billed book titles totaling $660,000. Collections, net of return credits, during the year totaled $605,934. he company spent $255,453 acquiring the books that it shipped a. Using accrual accounting and the preceding values, show the firm's net profit for the past year b. Using cash accounting and the preceding values, show the firm's net cash flow for the past year c. Which of these statements is more useful to the financil manager? Why?
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Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is considering two methods for producing special-purpose Lego parts. Method 1 will have an initial cost of $360,000, an annual operating cost of $130,000, and a life of 3 years. Method 2 will have an initial cost of $760,000, an operating cost of $130,000 per year, and a 6-year life. Assume 13% salvage values for both methods. Lego uses an MARR of 13% per year.Required:a. Which method should it select on the basis of a present worth analysis? b. If the evaluation is incorrectly performed using the respective life estimates of 3 and 6 years, will Lego make a correct or incorrect economic decision? Explain your answer.
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Which of the following constitutes constructive receipt in 2019? a. A check received on December 29, 2019. The check was postdated January 5, 2026. b. A check received on January 4, 2020. It had been mailed on December 29, 2019. c. Arent check, received on December 31, 2019, by the manager of an apartment complex. The manager normally collects rent for the owner who is out of town. d. A salary check received at 5:30 p.m. on December 31, 2019, after all banks are closed. e. A paycheck received on December 26, 2019. The check was not honored by the bank because the employer's account did not have sufficient funds.
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Write the journal entries for the following transaction of Amy's publishing company in September 2020:On September 30th, Amy's publishing company delivered the advertising pamphlets to the customer according to the contract. The direct cost of producing these pamphlets is $2,000 and is recorded as inventory on the balance sheet of Amy's publishing company. We will deal with how to recognize the inventory cost for a manufacturing company later in the class. The payment will be received in 30 days in the amount of $5000. The receipts of the full payment is reasonably assured.
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The following are selected transactions that may affect stockholders equity.1. Recorded accrued interest earned on a note receivable.2. Declared a cash dividend.3. Declared and distributed a stock split.4. Approved a retained earnings restriction.5. Recorded the expiration of insurance coverage that was previously recorded as prepaid insurance.6. Paid the cash dividend declared in item 2 above.7. Recorded accrued interest expense on a note payable.8. Declared a stock dividend.9. Distributed the stock dividend declared in item 8.In the following table, indicate the effect each of the nine transactions has on the financial statement elements listed.Item Assets Liabilities Stockholders Equity Paid-in Capital Retained Earnings Net Income1. The following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effect2. The following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effect3. The following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effect4. The following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effect5. The following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effect6. The following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effect7. The following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effect8. The following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effect9. The following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effectThe following are selected transactions that may a DecreaseIncreaseNo effect
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Moby Enterprises reports the following information for 2019. ($ numbers are totals for 2019, not per unit) Selling price per unit $800 Beginning and ending balances of Work in Process Inventory 0 Beginning balance of Finished Goods Inventory (50 units) $28,750 Units produced 90 Units sold 100 Direct material used (variable) $12,000 Direct labor used (variable) $28,000 Manufacturing overhead (variable) $4,550 Manufacturing overhead (fixed) $10,800 Selling and admn. expenses: sales commission (variable) $4,000 fixed $10,000 Notes: Moby uses FIFO for maintaining its finished goods inventory account. The Beginning Finished Goods Inventory balance of $28,750 consists of $24,250 in variable manufacturing costs and $4,500 of fixed manufacturing overhead. REQUIRED: Part 1. Compute the following for 2019 using absorption costing: a. Total Manufacturing Costs b. Cost-of-Goods-Manufactured c. Per unit cost of production d. Ending balance of Finished Goods Inventory (in units and dollars) e. Cost-of-goods sold f. Gross Margin g. Net Income Part 2. Identify clearly how the fixed manufacturing overhead (both that in the opening inventory and that incurred in 2019) has moved.
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For each of the following independent situations, prepare journal entries to record the initial transaction on December 31 and the adjustment required on January 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a. Magnificent Magazines received $8.400 on December 31, 2018, for subscription services related to magazines that will be published and distributed in January through December 2019 b. Walker Window Washing paid $840 cash for supplies on December 31, 2018. As of January 31, 2019, $140 of these supplies had been used up. c. Indoor Raceway received $2,100 on December 31, 2018, from race participants for providing services for three reces. One race Is held in January 31, 2019, and the other two will be held in March 2019
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