Morton Forms
Morton Forms is a Canadian controlled private corporation owned by Viola Morton. For the
taxation year ended December 31, 2016, Ms. Morton’s daughter, Linda, who works in the
business, has calculated a Net Income for Morton Forms of $576,183. In calculating this figure,
Linda used generally accepted accounting principles.
Linda has produced the following Income Statement for the year ended December 31, 2016:
Morton Forms Inc.
Income Statement Year ending December 31, 2016
Sales $ 7,578,903
Cost of Goods Sold 5,468,752
Gross Profit 2,110,151
Expenses
General and Admin $ 852,000
Amortization Expense 550,000
Interest 8,500 1,410,500
Operating Income 699,651
Other Income:
Loss on Disposal of Intangible Assets (17,000)
Interest Income 110,532
Income before income taxes 793,183
Income Taxes
Current 182,000
Future 35,000 217,000
Net Income $ 576,183
During your review of Linda’s work and last year’s tax return for the corporation, you have made
the following notes:
1. In the accounting records, the Allowance for Doubtful Accounts was $25,000 at
December 31, 2016, and $20,000 at December 31, 2105. During 2016, the company
had actual write-offs of $11,750. As a result, the accounting Bad Debt Expense was
$16,750. This amount is included in General and Admin expenses on the Income
statement.
2. A review of the listing of receivables (for tax purposes), indicates that the actual items
that may be uncollectible total $15,000 at December 31, 2106. In 2015, the company
deducted a reserve for bad debits of $13,000 for tax purposes.
3. General and Admin Expenses include:
a) Donations to registered charities 27,000
b) Accrued Bonuses – Accrued Sept 1, 2016. Paid June 15, 2017 78,000
Meals and entertainment costs:
c) $1,000 per month for premium membership at golf club for Viola 12,000
d) $200 per month for membership at golf club for salespeople 2,400
e) Meals while entertaining clients 32,000
f) Food costs for Viola’s personal chef for her meals at home 5,000
g) Annual summer BBQ for all staff 6,000
h) Sponsorship of local baseball team where company name is
prominently displayed on front of jersey 15,000
i) Advertising in a US trade magazine directed at US clients 100,000
j) New software purchased October 1, 2016. ($13,000 for applications
and $25,000 for systems) 38,000
k) Accounting and legal fees for amended to the articles of
incorporation 6,000
l) Costs to attend annual convention of finger knitters in Thailand.
While at the convention, Viola was sure to hand out business cards
and talk to other attendees about her business with the intention of
claiming the convention as a business expense. 17,000
4. Interest expense consists of the following:
a) Interest expense – operations 5,000
b) Penalty and interest for late and insufficient instalment payments 2,000
c) Interest on late payment of municipal property taxes 1,500
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Mortgages Are Securities Used To Finance Real Estate Purchases That Originate Fr
/in Uncategorized /by developerMortgages are securities used to finance real estate purchases that originate from various financial institutions. Analyze how financial institutions are affected by interest rate fluctuations.Evaluate the relationship between mortgage rates and long-term government security rates.At least 2 paragraphs please.
A mortgage is a transaction when the owner pledges his/her right to the property to thelender as a security for a loan. Hence the rates on these mortgages depend on the loantenure, the size of…
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Morton Company Needs To Pay A Supplier S Invoice Of 60 000 And Wants To Take A C
/in Uncategorized /by developerMorton Company needs to pay a supplier’s invoice of $60,000 and wants to take a cash discount of 2/10, net 40. The firm can borrow the money for 30 days at 11% per annum with a 9% compensating balance. Assume a 360-day year. The amount Morton Company must borrow to pay the supplier within the discount period and cover the compensating balance is
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Morton Financial Must Decide On The Percentage Of Available Funds To Commit To E
/in Uncategorized /by developerMorton Financial must decide on the percentage of available funds to commit to each of two investments, referred to as A and B, over the next four periods. The following table shows the amount of new funds available for each of the four periods, as well as the cash expenditure required for each investment (negative values) or the cash income from the investment (positive values). The data shown (in thousands of dollars) reflect the amount of expenditure or income if 100% of the funds available in any period are invested in either A or B. For example, if Morton decides to invest 100% of the funds available in any period in investment A, it will incur cash expenditures of $1000 in period 1, $800 in period 2, $200 in period 3, and income of $200 in period 4. Note, however, if Morton made the decision to invest 80% in investment A, the cash expenditures or income would be 80% of the values shown: B -1000 -800 -800 -500 -200 -300 200 300 The amount of funds available in any period is the sum of the new investment funds for period, the new loan funds, the savings from the previous period, the cash income from investment A, and the cash income from investment B. The funds available in any period can be used to pay the loan and interest from the previous period, placed in savings, used to pay the cash expenditures for investment A, or used to pay the cash expenditures for investment B. Assume an interest rate of 10% per period for saving and an interest rate of 18% per period on borrowed funds. At the end of period 4, investment A is expected to have a cash value of $3200 (assuming a 100% investment in A), and investment B is expected to have a cash value of $2500 (assuming a 100% investment in B). Additional income and expenses at the end of period 4 will be income from savings in period 4 less the repayment of the period 4 loan plus interest. If no more than $200 can be borrowed in any period, determine the proportions of investments A and B and the amount of savings and borrowing in each period that will maximize the cash value for the firm at the end of the four periods. Formulate and solve the model
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Morton Forms Morton Forms Is A Canadian Controlled Private Corporation Owned By
/in Uncategorized /by developerMorton Forms
Morton Forms is a Canadian controlled private corporation owned by Viola Morton. For the
taxation year ended December 31, 2016, Ms. Morton’s daughter, Linda, who works in the
business, has calculated a Net Income for Morton Forms of $576,183. In calculating this figure,
Linda used generally accepted accounting principles.
Linda has produced the following Income Statement for the year ended December 31, 2016:
Morton Forms Inc.
Income Statement Year ending December 31, 2016
Sales $ 7,578,903
Cost of Goods Sold 5,468,752
Gross Profit 2,110,151
Expenses
General and Admin $ 852,000
Amortization Expense 550,000
Interest 8,500 1,410,500
Operating Income 699,651
Other Income:
Loss on Disposal of Intangible Assets (17,000)
Interest Income 110,532
Income before income taxes 793,183
Income Taxes
Current 182,000
Future 35,000 217,000
Net Income $ 576,183
During your review of Linda’s work and last year’s tax return for the corporation, you have made
the following notes:
1. In the accounting records, the Allowance for Doubtful Accounts was $25,000 at
December 31, 2016, and $20,000 at December 31, 2105. During 2016, the company
had actual write-offs of $11,750. As a result, the accounting Bad Debt Expense was
$16,750. This amount is included in General and Admin expenses on the Income
statement.
2. A review of the listing of receivables (for tax purposes), indicates that the actual items
that may be uncollectible total $15,000 at December 31, 2106. In 2015, the company
deducted a reserve for bad debits of $13,000 for tax purposes.
3. General and Admin Expenses include:
a) Donations to registered charities 27,000
b) Accrued Bonuses – Accrued Sept 1, 2016. Paid June 15, 2017 78,000
Meals and entertainment costs:
c) $1,000 per month for premium membership at golf club for Viola 12,000
d) $200 per month for membership at golf club for salespeople 2,400
e) Meals while entertaining clients 32,000
f) Food costs for Viola’s personal chef for her meals at home 5,000
g) Annual summer BBQ for all staff 6,000
h) Sponsorship of local baseball team where company name is
prominently displayed on front of jersey 15,000
i) Advertising in a US trade magazine directed at US clients 100,000
j) New software purchased October 1, 2016. ($13,000 for applications
and $25,000 for systems) 38,000
k) Accounting and legal fees for amended to the articles of
incorporation 6,000
l) Costs to attend annual convention of finger knitters in Thailand.
While at the convention, Viola was sure to hand out business cards
and talk to other attendees about her business with the intention of
claiming the convention as a business expense. 17,000
4. Interest expense consists of the following:
a) Interest expense – operations 5,000
b) Penalty and interest for late and insufficient instalment payments 2,000
c) Interest on late payment of municipal property taxes 1,500
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Mortons Forms To Be Completed In The Place Of The Assigned Question Ap6 5 Br
/in Uncategorized /by developerMortons Forms – to be completed in the place of the assigned question – AP6-5 (Brown’sForms) at noted in the Lesson NotesMorton Forms is a proprietorship owned by Viola Morton. For the taxation year endedDecember 31, 2015, Ms. Morton’s daughter, Linda, who works in the business, has calculated aNet Income for Morton Forms of $193,200. In calculating this figure, Linda used generallyaccepted accounting principles.Other Information:1. During the year, Morton Forms spend $18,900 for landscaping the grounds around itsVancouver office. In accordance with generally accepted accounting principles, this amountwas treated as a capital expenditure. As the work was done late in the year, no amortizationwas deducted for the current year.2. The following items were included in the accounting expenses:a) Amortization Expense $69,300b) Cost of sponsoring local baseballteams 7,200c) Reserve for future inventoryobsolescence 15,000d) Advertising on a foreign televisionstation (directed at a Canadianmarket)9,600e) Advertising circulars (only ¼distributed) 12,400f) Business meals and entertainment 22,000g) Charitable donations 31,900h) Loss from theft 16,200i) Interest paid on building mortgage 24,200j) Appraisal costs on land to be sold 4,200k) Damages resulting from breach ofcontract 3,8003. Also included in the accounting expenses were $4,000 in fees paid to Linda’s 16 year old sonfor creating and maintaining the web site of Morton Forms. In pricing this work, Viola foundthat it would cost at least $8,000 to obtain the equivalent services from an outside consultant.4. Maximum CCA has been determined to be $94,200 for the taxation year ended December31, 2015.5. As the business is unincorporated, no taxes were deducted in calculating net income.Required:Calculate the minimum net business income for Morton forms that will be included in ViolaMorton’s tax return for the year ending December 31, 2015. Indicate your rationale for thetreatment of all information given. Include page references to your text for support of youranalyses.
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Moshim Azam 2 Page Essay On Defense Budget Terms
/in Uncategorized /by developerFor your fourth paper, the article needs to address the important defense budget terms, such as Budget Authority, outlays, and obligations.
The journals must be research oriented, such as those found in http://www.au.af.mil/au/aul/periodicals/dodelecj.htm
or related journals.
This means the article should cite references and have a bibliography at the end of the article.
After reading the article, you should prepare a one to two page paper discussing the article and provide a summary to the professor. Include your bibliography and put into APA format. I want to see some of your own thoughts as you conclude the paper.
Write a two page paper, plus the title page and a reference page.
Instructions:
•Written communication: Written communication is free of errors that detract from the overall message. •APA formatting: Resources and citations are formatted according to APA (6th edition) style and formatting. •Length of paper: typed, double-spaced pages with no less than a two page paper. •Font and font size: Times New Roman, 12 point.
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Mosser Corporation Common Stock Paid 2 08 In Dividends Last Year And Is Expected
/in Uncategorized /by developerMosser Corporation common stock paid $2.08 in dividends last year and is expected to grow indefinitely at an annual 7 percent rate. What is the value of the stock if you require a return of 13 percent?
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Most About This Course Do You Feel That The Assignment Provide An Appropriate In
/in Uncategorized /by developerWhat did you enjoy the most about this course ?
Do you feel that the assignment provide an appropriate introduction to programming/ Engineering/ IT / Business technologies? How this course changed the way that you think about Technology, how it it created, and how it implemented?
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Most Car Engines Need At Least 87 Octane To Avoid Knocking Or Pinging Terms Used
/in Uncategorized /by developerMost car engines need at least 87 octane to avoid”knocking” or”pinging,” terms used to describe the pre-ignition that can happen when a fuel’s octane is too low. An engineer is designing an experiment to raise the octane of anethanol-based fuel. From previous studies, she thinks that with 8 experimental runs, she will have a power of 0.90 to detect a real increase of 3 points in the mean octane. Complete parts a) and b) below.
a) If the actual increase is only 1 point and all other things remain equal, will the power be increased or decreased?
A. The power will remain constant, since the probability of correctly detecting the increased will remain the same.
B. The power will reman constant, since the probability of incorrectly detecting the increased will remain the same.
C. The power will be increased, since the probability of incorrectly detecting the increased will be lower.
D. The power will be increased, since the probability of incorrectly detecting the increased will be greater.
E. The power will be decreased, since the probability of incorrectly detecting the increased will be greater.
F. The power will be decreased, since the probability of incorrectly detecting the increased will be lower.
b) If she wants the power to be the same, but she is interested in detecting an increase of only 1 point, what will she need to do?
A. She will use a larger sample size to keep the power the same
B. She will redesign the experiment, this time using a different type of fuel
C. She will reduce alpha while maximizing the power
D. She will use a smaller sample size to keep the power the same
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Most Cd Music Has Two Channels Calculate The Data Rate In Kbps For Each Channel
/in Uncategorized /by developerMost CD music has two channels. Calculate the data rate, in kbps, for each channel of CD music based on its sampling rate and bit depth. If CD music (two channels) is converted to MP3 files at 256 kbps, what is the compression ratio? Show your work.
Sampe Rate:Digital breaks things like time up into little measurements called ticks, where tick is similar toticking of a second hand. The rate of these ticks is measured in hertz. A 1Mhz…
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"