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Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2017.BRECKER INC.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2017 AND 201612/31/17 12/31/16Cash $6,000 $7,000Accounts receivable 62,000 51,000Short-term debt investments (available-for-sale) 35,000 18,000Inventory 40,000 60,000Prepaid rent 5,000 4,000Equipment 154,000 130,000Accumulated depreciationequipment (35,000 ) (25,000 )Copyrights 46,000 50,000Total assets $313,000 $295,000Accounts payable $46,000 $40,000Income taxes payable 4,000 6,000Salaries and wages payable 8,000 4,000Short-term loans payable 8,000 10,000Long-term loans payable 60,000 69,000Common stock, $10 par 100,000 100,000Contributed capital, common stock 30,000 30,000Retained earnings 57,000 36,000Total liabilities & stockholders equity $313,000 $295,000BRECKER INC.INCOME STATEMENTFOR THE YEAR ENDING DECEMBER 31, 2017Sales revenue $338,150Cost of goods sold 175,000Gross profit 163,150Operating expenses 120,000Operating income 43,150Interest expense $11,400Gain on sale of equipment 2,000 9,400Income before tax 33,750Income tax expense 6,750Net income 27000Additional information:1. Dividends in the amount of $6,000 were declared and paid during 2017.2. Depreciation expense and amortization expense are included in operating expenses.3. No unrealized gains or losses have occurred on the investments during the year.4. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2017.Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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Owen wants to contribute cash or capital gain property or stock to a charitable organization this year. Assume his adjusted gross income for the year will be $150,000 and that he only plans to make one of the following donations. If he contributes $100,000 cash to a public charity, he can deduct $ __________ this year. If he contributes property that is worth $80,000 to a public charity, he can deduct $ ___________ . Or, if he contributes publicly traded stock with a FMV of $60,000 and a basis of $40,000 to a private non-operating foundation, he can deduct $ __________ this year.
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On June 15, a US firm is planning to import Mexican caviar worth Pesos 2 million due on July 15 (one month later). The firm decides to hedge its payables position by using September peso futures. The spot rate on June 15 is US$ 0.0630 / peso and the September futures price on June 15 is at $0.0665 per peso. One month late on July 15, the spot rate is $0.0570 / peso while the September futures price is $0.0615 / peso. Assume contract size is 2 million pesos.Required:1. What is the gain or loss from the futures hedge?
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An external competitor to Construction (from another island) is offering to build the new homes for $1300 each. Here are facts about the each of the projects (incline, bridge, campground, new home) Construction is considering: Revenue Variable Cost Incline $1,400 $600 Bridge $1,500 $950 Campground $2,700 $1,200 New Home ? $700Island Evaluations only wants to hire one company to build all five homes. In other words, either Construction (internal) will build all five, or the competitor (from another island) will build all five new homes. Island Evaluations plans on selling the homes to new tenants for $2,500 each.a) What is the minimum transfer price (per home) that Construction would be willing to accept?b) What is the maximum transfer price (per home) Island Evaluations would be willing to accept?
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Kristen Lu purchased a used automobile for $16,750 at the beginning of last year and incurred the following operating costs: Depreciation ($16,750 5 years) $3,350 Insurance $1,700 Garage rent $900 Automobile tax and license $450 Variable operating cost $0.06 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $3,350. The car is kept in a garage for a monthly fee.Required:a. Kristen drove the car 16,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.)b. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What costs above are relevant in this decision?
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Park Corporation is planning to issue bonds with a face value of $750,000 and a coupon rate of 7.5 percent. The bonds mature in 4 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. Required:1. Provide the journal entry to record the issuance of the bonds.2. Provide the journal entry to record the interest payment on June 30 and December 31 of this year.3. What bonds payable amount will Claire report on this year's December 31 balance sheet?
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During 2022 Concord Corporation had sales on account of $596000, cash sales of $235000, and collections on account of $342000. In addition, they collected $9200 which had been written off as uncollectible in 2021. As a result of these transactions the change in the accounts receivable balance from the beginning of the year to the end of the year indicates a:_______
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P & G Auto Parts sells parts to AAA Car Repair during 2021. P&G offers rebates of 3% on purchases up to $80,000 and 6% on purchases above $80,000 if the customers purchases for the year exceed $300,000. In the past, AAA normally purchases $400,000 in parts during a calendar year. On March 25, 2021, AAA Car Repair purchased $90,000 of parts. Required:1. The journal entry to record the purchase includes a ____________.
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The following table contains statements that provide some analysis of policies that address globalization. Categorize each of these statements as either positive or normative. 1. Statement Positive Normative In the past decade, U.S. companies have outsourced millions of jobs overseas.2. Companies that outsource jobs are acting immorally.3. If the U.S. government were to institute higher tariffs on imports, companies would stop outsourcing jobs.4. The U.S. government should institute higher tariffs on imports.
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Friends International is an NGO that fosters greater cultural awareness and understanding by arranging for people of different backgrounds to spend time in other countries and cultures. On January 1, 2014 they purchased $80,000 of open airline tickets in advance that can be used for a variety of destinations. Using the accrual method, build the entry to record the use of $40,000 of these tickets on March 15, 2014 for multiple passengers on a flight from New York to Kigali, Rwanda.
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If an email message is going _________of the organization, the writer should include a salutation that can simply state the individual's name.Options:1) Inside2) Outside3) Inside and Outside4) All of the Above
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the money supply may expand by less than the amount predicted by the money multiplier if :
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Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 4 pounds at $8 per pound $ 32 Direct labor: 2 hours at $16 per hour 32 Variable overhead: 2 hours at $6 per hour 12 Total standard cost per unit $ 76 The planning budget for March was based on producing and selling 32,000 units. However, during March the company actually produced and sold 37,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.40 per pound. All of this material was used in production. b. Direct laborers worked 67,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $422,100.Required:1. What raw materials cost would be included in the company's planning budget for March?2. What raw materials cost would be included in the company's flexible budget for March?3. What is the materials price variance for March?4. What is the materials quantity variance for March?
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Phelps Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,200,000 for 50,000 shares. Kulikowski Inc declared and paid an 50.85 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $730,000 for 2021. The fair value of Kulikowski's stock was $27 per share at December 31, 2021Required:a. Prepare the journal entries for Jayce Phelps inc. for 2020 and 2021, assuming that Phelps cannot exercise significant influence over Kulkowski.b. Prepare the journal entries for Jayce Phelps Inc. for 2020 and 2021, assuming that Phelps can exercise significant influence over Kulikowski.c. At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2021? What is the total net income reported in 2021 under each of these methods?
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In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows. Budget Actual Indirect materials $14,000 $13,500 Indirect labor 19,000 19,500 Utilities 10,000 10,500 Supervision 4,000 4,000 All costs are controllable by the department manager.Required:1. Prepare a responsibility report for April for the cost center.
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A deficit in a nations current account means:A. it must limit the flow of foreign capital investmentB. it must have a deficit in its financial account as wellC. it must increase interest rates to attract foreign investmentD. there must be a surplus in its financial accountE. there must be more exports than imports for the nation.
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Employers are generally allowed to deduct reasonable compensation paid to employees, but the level of deductible compensation is limited to a maximum of $ ________ for the CEO, CFO, and the next three highest paid officers of publicly traded corporations unless certain exceptions are met.
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Photo Co. operates four film developing plants in upstate New York. The four plants are identical. They employ the same production technology, process the same mix, and buy raw materials from the same companies at the same prices. Wage rates are also the same at four plants. In reviewing the operating results for December, the newly hired assistant controller, Mike, became quite confused over the numbers. Plant A Plant B Plant C Plant DNumber of Rolls processed 50,000 55,000 60,000 65,000Revenue ($000s) $500 $550 $600 $650Less: Variable costs (195) (242) (300) (298) (352)Fixed costs (300) (300) (300) (300) Profit (loss) $5 $8 $2 $2 Mike remembered from his Accounting class that as volume increases, the average fixed cost per unit falls, and so Mike expected Plant D to be more profitable that Plants A and B. But numbers show just the opposite. Required: 1. Write a concise memo to Mike to help him understand what is going on and to eliminate his confusion.Justify your points with appropriate calculations.
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On June 1, 2018, Perfect Performance Cell Phones sold $ 17,000 of merchandise to Ashton Trucking Company on account. Ashton fell on hard times and on July 15 paid only $ 6,000 of the account receivable. After repeated attempts to collect, Perfect Performance finally wrote off its accounts receivable from Ashton on September 5. Six months later, March 5, 2019, Perfect Performance received Ashton's check for $ 11,000 with a note apologizing for the late payment.Requirements:1. Journalize the transactions for High Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold.2. What are some limitations that High Performance will encounter when using the direct write-off method?
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Which of the following statements is (are) true regarding product costing? (A) Individual product costs are relevant for managerial decision-making but irrelevant for preparing the financial statements. (B) A common decision facing managers is determining the price at which to sell their products or provide their services.
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Large-scale integrated (LSI) circuit chips are made in one department of an electronics firm. These chips are incorporated into analog devices that are then encased in epoxy. The yield is not particularly good for LSI manufacture, so the AQL specified by that department is 20% while the LTPD acceptable by the assembly department is 52%. Assume the company is willing to accept a consumer's risk of 10 percent and a producer's risk of 5 percent.A. Find the sample size. B. How would you tell someone to do the test?
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Eastport Inc. was organized on June 5, 2018. It was authorized to issue 380,000 shares of $11 par common stock and 25,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Eastport Inc.:1. Issued 15,000 shares of common stock for $12 per share.2. Issued 5,000 shares of the class A preferred stock for $51 per share.3. Issued 60,000 shares of common stock for $15 per share.Required:a. Prepare general journal entries for these transactions.b. Prepare the stockholders' equity section of the balance sheet immediately after these transactions.
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How do states with no personal income tax raise money for public services?
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Producers' surplus is __________.O the difference between the price a seller receives for a good and the price a buyer pays for the good. O equal to price times quantity sold. O equal to the seller's minimum price and the buyer's maximum price. O the difference between the price a seller receives for a good and the minimum price for which he would have sold the good. O the difference between the price a buyer pays for a good and the highest price he would have paid for the good.
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