• Q : Transactions engaged in by a services company....
    Accounting Basics :

    Problem: Listed below are six transactions engaged in by a services company. For each transaction, give the effect on the accounts, using the format in the example.

  • Q : Determining the type of business entity....
    Accounting Basics :

    In determining the type of business entity to use (that is, a sole proprietorship, a partnership, or a C corporation), what factors would you emphasize to a client?

  • Q : Alternatives on a total-annual-cost basis....
    Accounting Basics :

    The president asks you to compare the alternatives on a total-annual-cost basis and on a per-unit basis for annual needs of 60,000 units.  Which alternative is more attractive?

  • Q : Break-even analysis be used by management....
    Accounting Basics :

    Problem: Can you please explain some of the potential ways that break-even analysis can be used by management to make better decisions. What is the break-even analysis anyway, and how would it contr

  • Q : Variable and fixed costs problem....
    Accounting Basics :

    Solutions Corporation has offered to supply 20,000 units of R2 at a price of $13.00 per unit. If Network accepts the offer, all of the variable costs and $30,000 of the fixed costs will be eliminate

  • Q : Why statement of cash flows provides useful information....
    Accounting Basics :

    Problem: Explain why the statement of cash flows provides useful information that goes beyond income statement and balance sheet data.

  • Q : Depreciation-property taxes-insurance-supervisory salaries....
    Accounting Basics :

    Another manufacturer has offered to sell the same part to Eaton for $20 each. The fixed overhead consists of depreciation, property taxes, insurance & supervisory salaries.

  • Q : Disadvantage of the corporate form....
    Accounting Basics :

    Serrie and Al and their two daughters have operated a business out of their home for years and are thinking about incorporating. They would like to avoid the "double taxation" of corporate income. W

  • Q : Beginning or ending inventories-variable and mixed selling....
    Accounting Basics :

    What were both the variable & mixed  selling and admin.expenses for Nov.? I have no idea as to how to determine these #’s.

  • Q : Remaining costs-labor time....
    Accounting Basics :

    According to Lyon's specs. the special order requires less expensive raw materials which will only cost FF 32.5 per case.  Mgt. has estimated that the remaining costs, labor time, and machine t

  • Q : Department vision statement to the o-t strategies....
    Accounting Basics :

    Link the Coors Operation and Technology (O&T) department vision statement to the O&T strategies or "supply chain guiding principles." Are there any gaps?

  • Q : Determine the annual break-even point....
    Accounting Basics :

    1) Find the contribution margin per haircut. Assume that the barbers' compensation is a fixed cost. 2) Determine the annual break-even point, in number of haircuts.

  • Q : Prepare income statements under variable costing....
    Accounting Basics :

    Prepare income statements under variable costing for the year ended December 31, 2004. Show all work.

  • Q : Trend analysis for business applications....
    Accounting Basics :

    Problem: Besides accountants, who uses trend analysis for business applications? Why are they used?

  • Q : Computing short-term and long-term gains....
    Accounting Basics :

    On the date of sale, Dylan had no hot assets, so Ms. Sack's entire $33,500 gain was capital gain. How much of the gain is short term and how much is long term?

  • Q : Describing a liquidating distribution to a partner....
    Accounting Basics :

    Each of the following independent cases describes a liquidating distribution to a partner. Compute the partner's recognized gain or loss and basis in any property received.

  • Q : Was a taxable asset acquisition....
    Accounting Basics :

    What is Charlton's book basis and tax basis in the real estate assuming that the acquisition: (1) Was a taxable asset acquisition? (2) Was a type C reorganization?

  • Q : Tax income with respect to the abc stock....
    Accounting Basics :

    (1) Does Jessup have a difference in its book and tax income with respect to the ABC stock? (2) Next year, Jessup sells the 13,000 ABC shares for $105,250 cash. Does this transaction result in a book/

  • Q : Corresponding cash flow to shareholders....
    Accounting Basics :

    Can Porter declare a taxable dividend without any corresponding cash flow to its shareholders? What would be the tax consequences of such a dividend to Mr. and Mr. Porter?

  • Q : Bonds as a safe investment....
    Accounting Basics :

    People tend to think of long term bonds as a safe investment where their principal is never at risk. Are there cases related to the issues question where that might not be true? What would they be?

  • Q : Comparing two different capital structures....
    Accounting Basics :

    Duval Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Duval would have 600,000 shares of stock outstanding.

  • Q : Calculate the percentage changes in eps....
    Accounting Basics :

    Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. Also, calculate the percentage changes in EPS when the economy expands or enters a recession.

  • Q : Corporate actions of cash....
    Accounting Basics :

    Indicate the impact of the following corporate actions of cash, whether it would: I = increase, D = decrease, N = no change occurs.

  • Q : Working capital and current ratio....
    Accounting Basics :

    Dividends of $50,000 were declared and paid in 2000. Compute the following: Current ratio at end of 1999 ___________to 1 Current ratio at end of 2000 ____________to 1 Working capital at end of 1999 $_

  • Q : Strategy to minimize the payroll tax....
    Accounting Basics :

    The purpose of this odd payment schedule is to avoid Social Security tax on Mr. Whit's base salary in alternating years. Will this strategy to minimize his payroll tax actually work?

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