• Q : The contribution margin ratio....
    Accounting Basics :

    Bailey Company sells 25,424 units at $15.00 per unit. Variable costs are $8.00 per unit, and fixed costs are $8.00. The contribution margin ratio and the unit contribution margin, (rounding to two

  • Q : How the interest is tax exempt....
    Accounting Basics :

    Taxpayer Y, who has a 30 percent marginal tax rate, invested $65,000 in a bond that pays 8% annual interest. Compute Y's annual cash net flow from this investment assuming that the interest is tax e

  • Q : What are the january cash collections from sales....
    Accounting Basics :

    O'Neill Co. has $296,467 in accounts receivable on January 1. Budgeted sales for January are $835,975. O'Neill expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on accou

  • Q : What would be the amount of interest expense....
    Accounting Basics :

    A lease agreement calls for quarterly lease payments of $5,600 over a 15-year lease term, with the first payment at July 1, the lease’s inception. The interest rate is 12%.

  • Q : How would the investments be ranked....
    Accounting Basics :

    Using the project profitability index, how would the above investments be ranked (highest to lowest)?Fonics Corporation is considering the following three competing investment proposals:

  • Q : What is the dollar amount of direct material....
    Accounting Basics :

    Win Corporation sells a single product. Budgeted sales for the year are anticipated to be 675,521 units, estimated beginning inventory is 104,612 units.

  • Q : An agreement with its bank to maintain....
    Accounting Basics :

    Southern Company is preparing a cash budget for April. The company has $12,000 cash at the beginning of April and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during April.

  • Q : How much will operating income change....
    Accounting Basics :

    Salter Inc.'s unit selling price is $51, the unit variable costs are $32, fixed costs are $115,315, and current sales are 9,505 units. How much will operating income change if sales increase by 5,7

  • Q : Prepare a statement of partnership liqudation....
    Accounting Basics :

    Partners share net income and losses in the ratio of 3:2:1 between May 7-30 the noncash assests were sold for $150,000 the liabilities were paid and the remaining cash was distributed to the partner

  • Q : Determine the depletion cost per board foot....
    Accounting Basics :

    Conan O'Brien Logging and Lumber Company owns 3,300 acres of timberland on the north side of Mount Leno, which was purchased in 2000 at a cost of $650 per acre. In 2012.

  • Q : What is the number of shares that should be used....
    Accounting Basics :

    Terry Corporation had 300,000 shares of common stock outstanding at December 31, 2010. In addition, it had 90,000 stock options outstanding, which had been granted to certain executives.

  • Q : Calculate company sales revenue and prepare an accrual....
    Accounting Basics :

    Charlie Driver has $35,000 saves and has decided to attend college, taking courses in marketing and retailing. To help pay his tuition and living expenses, he contracted with a mobile catering compa

  • Q : What does the earnings per common share amount....
    Accounting Basics :

    At December 31, 2011 and 2010, Miley Corp. had 180,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding.

  • Q : Shares of common stock issued....
    Accounting Basics :

    Didde Co. had 300,000 shares of common stock issued and outstanding at December 31, 2010. No common stock was issued during 2011. On January 1, 2011.

  • Q : Contract to provide exclusive limo services....
    Accounting Basics :

    Sleek Ride, a company providing limo services, has a December 31 year-end date. For Sleek Ride, the following transactions occurred during the ?rst 10 days of June.

  • Q : What is the total amount of dividends that will be paid....
    Accounting Basics :

    Occidental Produce Company has 40,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $0.01 par value; the preferred stock is 4% non-cumulativ

  • Q : The value at the date of the additional....
    Accounting Basics :

    Company A subsequently sold another 3,000 shares of its stock at $50 per share. Company A used the $150,000 proceeds to acquire 10% of the outstanding voting stock of Company S held by the NCI.

  • Q : Compute the depreciation charge....
    Accounting Basics :

    Wenner Furnace Corp. purchased machinery for $421,290 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $22,650, production of 362,400 units, and working

  • Q : Explain why it is necessary to use preliminary stage....
    Accounting Basics :

    Glaser Health Products of Ranier Falls, Georgia, is organized functionally into three divisions: Operations, Sales, and Administrative. Purchasing, receiving, materials and production control, manu

  • Q : The value at the date of the additional....
    Accounting Basics :

    Show the calculations and journal entries to record Company A's initial investment in Company S under the fair-value method of accounting for NCI.

  • Q : What is the original cost of the auto....
    Accounting Basics :

    Stevens purchased an auto on Jan 1, 2001. On December 31, 2003 the accummulated depreciation account has a balance of $7,500. If the auto is considered fully depreciated on December 31, 2004, and i

  • Q : Explain why the owners investment and revenues increased....
    Accounting Basics :

    Explain why the owner's investment and revenues increased owner's equity, while withdrawls and expenses decreased owner's equity.

  • Q : What method would you use to test an individual....
    Accounting Basics :

    You are auditing the accounts receivable balance of a cable television provider. Individual accounts receivables tend to be similar in amount to each other and cover one or two months of service ch

  • Q : What will be the effect on total stockholders equity....
    Accounting Basics :

    A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity?

  • Q : What are the u.s. tax consequences....
    Accounting Basics :

    Finco is a wholly owned Finnish manufacturing subsidiary of Winco, a domestic corporation that manufactures and markets residential window products throughout the world.

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