• Q : How many of each product line must....
    Accounting Basics :

    You examine the financial statements of a firm and find that for every unit of Product Y sold, the firm sells 1.5 units of product X. The sales price and variable cost per unit for Product X are $10

  • Q : What is the net benefit or net loss of dropping....
    Accounting Basics :

    Swanton Company currently sells 3 products and details of revenues and costs are given below. The company is thinking of discontinuing the production of paper clip holders.

  • Q : What is the amount of dicks recognized gain or loss....
    Accounting Basics :

    In 2011 dick, even and fran form triton corporation dick contributes land a capital asset having a $50,000 FMV in exchange for 50 shares of triton stock. He purchased the land in 2009 for $60,000.

  • Q : Differently on the tax return and in the accounting records....
    Accounting Basics :

    Frey corporation income statement for the year ended december 31,2005, shows pretax income of $1,000,000. the following items are treated differently on the tax return and in the accounting records.

  • Q : How the new production process is implemented....
    Accounting Basics :

    Prestopino's management is trying to analyze the effect of a proposed new production process on its working capital investment.

  • Q : Explain depreciation of equipment....
    Accounting Basics :

    How is the first graph the correct answer for letter d?Depreciation of equipment, where the amount is computed by the straight line method.

  • Q : What is the shares used to compute diluted eps....
    Accounting Basics :

    At Dec. 31,2010 had 7,000 shares of c/s issued and oustanding. April 1,2011 an additional 1,000 shares of c/s were issued and on July 1, 500 more shares were issued. Oct.1,2007 issued $10,000.

  • Q : .what would dso be if all customers paid on time....
    Accounting Basics :

    Lamar Lumber Company has sales of $9 million per year, all on credit terms calling for payment within 30 days; and its accounts receivable are $2.25 million.

  • Q : What is the shares used in computing beps....
    Accounting Basics :

    2,500,000 shares of c/s outstanding on Dec. 31, 2009. Additional 500,000 shares of c/s were issued on April 1, 2010 and 250,000 more on July 1, 2010. On Oct. 1, 2010 issued 5,000 $1000 face value, 7

  • Q : How much cash would be freed-up....
    Accounting Basics :

    If Primrose could lower its inventories and receivables by 9% each and increase its payables by 9%, all without affecting sales or cost of goods sold, what would be the new CCC?

  • Q : What would the amounts shown as ending inventory....
    Accounting Basics :

    If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what would the amounts shown as ending inventory in 1, 2, and 3 above be?

  • Q : What is the diluted eps....
    Accounting Basics :

    200,000 shares of c/s issued and outstanding at Dec. 31, 2009. July 1, 2010 issued a 10% stock dividend. Unexercised stock options to purchase 40,000 shares of c/s at $20 per share were outstanding

  • Q : Application of the treasury stock method....
    Accounting Basics :

    Warrants exercisable at $20 each to obtain 20,000 shares of c/s were outstanding during a period when the average and year-end market price of the c/s was $25.

  • Q : What of shares should be used in computing diluted....
    Accounting Basics :

    Issued and outstanding 150,000 shares of c/s at Dec. 31, 2009. July 1, 2010 issued an additional 25,000 shares of c/s for cash. Had unexercised stock options to purchase 20,000 shares of c/s at $15.

  • Q : What shares should be used in computing beps....
    Accounting Basics :

    Dec. 31, 2010, 600,000 shares of c/s issued and outstanding. Issued a 10% stock on dividend on July 1, 2011, on Oct.1,2011 reacquired 48,000 shares of iis c/s. What # of shares should be used in co

  • Q : What factors would influence mullets decision to refund....
    Accounting Basics :

    Mullet technologies whether or not to refund a $75 million, 12 % coupon, 30-year bond issue that was sold 5 years ago. It is amortization $5 million of flotation cost of the 12 % bonds over the issu

  • Q : How to demonstrate the dependency relations....
    Accounting Basics :

    A Network Diagram is a directional graph consisting of activity nodes and connections to demonstrate the dependency relations between these activities for a complete project.

  • Q : Dividends were declared on either....
    Accounting Basics :

    Dec. 31, 2010 and Dec. 31, 2009 had 200,000 shares of c/s and 20,000 shares of 5%, $100 par value cumulative p/s outstanding. No dividends were declared on either the p/s or c/s in 2010 or 2009. Fo

  • Q : Determine the taxable portion of the social security benefit....
    Accounting Basics :

    Dan and Diana file a joint return. Dan earned $31,000 during the year before losing his job. Diana received Social Security benefits of $5,000.

  • Q : What is tammy basis in the residence....
    Accounting Basics :

    As a result of their divorce, Fred agrees to pay alimony to Tammy of $20,000 per year. The payments are to cease in the event of Fred's or Tammy's death or in the event of Tammy's remarriage.

  • Q : How management could use variance analysis....
    Accounting Basics :

    The plant manager decides that what is needed is an objective appraisal of what should be done. He hires June Collins of Collins and Collins, CPAs. June recommends that the Charlotte plant should us

  • Q : What tax issues should larry art gallery consider....
    Accounting Basics :

    Customers often come to Larry looking for special pieces. In order to meet customer needs, Larry often accepts orders and then travels looking for the desired item, which he purchases and delivers t

  • Q : What is the cost of goods sold using the absorption....
    Accounting Basics :

    Digital Edge Inc. assembles and sells MP3 players. The company began operations on May 1, 2010, and operated at 100% of capacity during the first month. The following data summarize the results for

  • Q : What is the amount of inventory to be reported....
    Accounting Basics :

    A business using the retail method of inventory costing determines that merchandise inventory at retail is $375,000. If the ratio of cost to retail price is 60%, what is the amount of inventory to b

  • Q : Identify the relevant tax issues for ella....
    Accounting Basics :

    Ella owns 60% of the stock of Peach, Inc. The stock has declined in value since she purchased it five years ago. She is going to sell 5% of the stock to a relative.

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