Exercise 122 (Part Level Submission)
The following information is available for Irwin Company for 2018:
Net Income$118,00010,000Unrealized holding gain arising during the period on available-for-sale debt securities31,000Reclassification adjustment for gains included in net income8,500
Determine other comprehensive income for 2018.
Other comprehensive income$_____
Exercise 12-8
Sandhill Company has provided information on intangible assets as follows.
A patent was purchased from Ford Company for $2,555,000 on January 1, 2016. Sandhill estimated the remaining useful life of the patent to be 10 years. The patent was carried in Ford’s accounting records at a net book value of $2,036,000 when Ford sold it to Sandhill.
During 2017, a franchise was purchased from Polo Company for $532,000. In addition, 7% of revenue from the franchise must be paid to Polo. Revenue from the franchise for 2017 was $2,690,000. Sandhill estimates the useful life of the franchise to be 10 years and takes a full year’s amortization in the year of purchase.
Sandhill incurred research and development costs in 2017 as follows.
Materials and equipment$138,400
Personnel189,700
Indirect costs104,100
$432,200
Sandhill estimates that these costs will be recouped by December 31, 2020. The materials and equipment purchased have no alternative uses.
On January 1, 2017, because of recent events in the field, Sandhill estimates that the remaining life of the patent purchased on January 1, 2016, is only 5 years from January 1, 2017.
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EXERCISE 12-1. Explain why, in the calculation of EVA, the profit measure used (NOPAT) excludes interest expense. EXERCISE 12-5. Responsibility Centers A major software company has established customer service centers in India, Ireland, and Israel to provide support to its U.S. customers with foreign operations. The prices that the company charges for software reflect estimated costs in operating the centers (i.e., there is no separate charge for service). EXERCISE 12-9. Calculating Residual Income [LO 4, 6] For fiscal year 2015, Katherine’s Department Store had net income of $6,000,000. Interest expense was $2,250,000, and the company’s tax rate on income was 40 percent. Total assets were $80,000,000, and noninterest-bearing current liabilities were $6,700,000. The company’s cost of capital (required rate of return) is 10 percent.Required: Calculate NOPAT, invested capital, and residual income for Katherine’s Department Store and comment on the company’s profitability.EXERCISE 12-15. Customer-Focused Measures for a Balanced Scorecard [LO 7, 9] Major’s Fitness Club operates a 20,000-square-foot facility in Dallas. For the coming year, the company is considering development of a balanced scorecard.Required: Help the company by identifying three customer-focused measures that can be used on the balanced scorecard. Discuss the key items related to a successful balanced scorecard.
Exercise 119
Agee Corporation acquired a 30% interest in Trent Company on January 1, 2018, for $480,000. At that time, Trent had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2018, Trent paid cash dividends of $150,000 and thereafter declared and issued a 5% common stock dividend when the fair value was $2 per share. Trent’s net income for 2018 was $350,000. What is the balance in Agee’s equity investment account at the end of 2018?
Balance in equity investment account is
For the picture below, how do you draw the arrows that represent the wind patterns that we would expect to happen?
EXERCISE 14 PROBLEMS – PARTIThe two maps shown are pressure maps for the United States ( pressure is shown in millibars ) . Thetop map ( a ) shows the isobars at an altitude of 2500 meters ( 8000 feet ) . The bottom map ( b ) showsthe surface pressure .On each map , use a colored pencil to draw 1 centimeter ( / 2 inch ) long arrows to show the windpattern you would expect to observe . Align the arrows in their proper relationship to the isobarsUse 8 to 12 arrows for each map . Remember , in the upper atmosphere all wind is geostrophic ,whereas near the surface , none is geostrophic .8980ogg704708gto( a ) Upper AtmospherePressure(HteaFROWN70764020-+02440081020)TookFood( b ) SurfaceHPressure81Copyright @ 2017 Pearson Education , Inc .
exercise 14-1 (Multiple choice)
1. To prepare common size statements, what do you do to the financial statement data elements? a. Convert them to amounts per capita
b. Present them on a single page
c. Show them as percentages of 100
d. Convert them to percentage change data
2. Which of the following is considered an asset in computing the quick ratio?
a. Supplies inventory
b. Prepaid insurance
c. Investments in long- term bonds
d. Certificates of deposit purchased with an original maturity of 30 days
3. Which of the following belongs in the numerator when computing the budgetary cushion of a municipal government?
a. Infrastructure assets
b. Unassigned fund balance
c. Proceeds of bonds issued for capital construction purposes
d. Restricted fund balance
4. In computing the program services ratio, which of these expenses would not be considered part of the program service expenses?
a. Donated services of an administrative nature, such as legal fees
b. Depreciation of equipment used by a program
c. Expenses of a program financed from temporarily restricted funds
d. Donated services applicable to a program
5. What does the number of days revenue in a hospital’s receivables reveal? a. Its bad debts expense for the year
b. The amount of its charity services
c. Its accounts receivable collection efficiency
d. The amount of its net patient service revenue
6. O verlapping debt is which of the following?
a. General obligation debt sold to finance the capital assets of Enterprise Funds
b. Debt sold by a public authority on behalf of a primary government
c. The proportionate share of debt issued by other governmental units that provide services to the citizens of the government
d. The portion of total debt issued by a government that is due in future years
7. What does the funded ratio show?
a. The portion of bonds payable that has been set aside in a debt service reserve fund
b. The portion of the pension benefit obligation that is covered by assets available for pension benefits
c. The portion of the future cost of fixed assets that is financed by a new bond issue
d. The portion of the current year’s tax levy collected during the year
E15-9
E15- 14.Using the following information, prepare a trial balance for the Bilello Electric Repair Company as of June 30, 2013, grouping together the asset, liability, equity, revenue, and expense accounts.Accumulated depreciation truck and tools…… $ 4,800Accounts receivable …………… 1,200Truck and tools …………….. 24,000Cash ………………… 4,000Utilities expense …………… 1,000Depreciation expense truck and tools……. 2,400Electrical supplies inventory ………… 3,000Joe Bilello, Withdrawals ………….. 55,000Joe Bilello, Capital ……………. 6,300Electrical supplies expense ………… 4,000Service revenue …………….. 68,000Rent expense ……………… 3,000Notes payable……………… 20,000Truck expense……………… 1,500
E15-9
e15-9 (recognizing assets liabilities revenues and expense accounts) base on the following data, calculate the net income for the period and the balance in the account for Nuno Texeira, Capital after the closing entry has been posted.
Cash …………………………………$12,000
account receivable …………….15,000
prepaid rent………………………. 1,000
ironworking equipment ………..30,000
accumulated depreciation, equipment…..9,000
account payable………………….5,000
note payable to bank…………..10,000
Nuno texeira capital…………….25,000
service revenue……………………30,000
depreciation expense……………3,0000
rent expense……………………….. 6,000
salary expense………………………14,000
Exercise 13-3On December 31, 2014, Hattie McDaniel Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2015. On January 21, 2015, the company issued 25,000 shares of its common stock for $38 per share, receiving $950,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2015, the proceeds from the stock sale, supplemented by an additional $250,000 cash, are used to liquidate the $1,200,000 debt. The December 31, 2014, balance sheet is issued on February 23, 2015.Show how the $1,200,000 of short-term debt should be presented on the December 31, 2014, balance sheet. (Enter account name only and do not provide descriptive information.)Hatttie McDaniel CompanyPartial Balance SheetDecember 31, 2014 :
if someone can help me with this problem it would help me alot for this class thank you.
Exercise 13-7 Net Present Value Analysis of Two Alternatives [LO13-2] Perit Industries has $175,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternativesare: Project A Project 13 Cost of equipment required $175,000 $ 0Working capital investment required $ 0 $175,000Annual cash inflows $ 27,000 $ 44,000Salvage value of equipment in six years $ 8,800 $ 0Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discountrate is 15%. Click here to view Exhibit 133-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. (Enter negative values with a minus sign.)2. Compute the net present value of Project B. (Enter negative values with a minus sign.)3. Which investment alternative (if either) would you recommend that the company accept? Net present value project A 2. Net present value project B 3 Which investment alternative (if either) would you’ recommend that the company accept?
Exercise 13-2 An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Conard Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.(a) Payment of interest on notes payable (h) Issuance of capital stock(b) Exchange of land for patent. (i) Amortization of patent.(c) Sale of building at book value. (j) Issuance of bonds for land.(d) Payment of dividends. (k) Purchase of land. (e) Depreciation. (l) Conversion of bonds into(f) Receipt of dividends on investment common stock. in stock. (m) Loss on sale of land. (g) Receipt of interest on notes receivable. (n) Retirement of bond. InstructionsIndicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity.Exercise 13-5 The current sections of Leach Inc.’s balance sheets at December 31, 2010 and 2011, are presented here.Leach’s net income for 2011 was $153,000. Depreciation expense was $24,000.2011 2010Current assets Cash $105,000 $99,000 Accounts receivable 110,000 89,000Inventory 158,000 172,000Prepaid expenses 27,000 22,000Total current assests $400,000 $382,000 Current liabilites Accrued expenses payable $15,000 $5,000 Accounts payable 85,000 92,000Total current liabilities $100,000 $97,000 InstructionsPrepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31,2011, using the indirect method.Exercise 13-7 Willingham Corporation’s comparative balance sheets are presented below.WILLNGHAM CORPORATIONComparative Balance SheetsDecember 312011 2010Cash $14,300 $10,700 Accounts receivable 21,200 23,400Land 20,000 26,000Building 70,000 70,000Accumulated depreciation -15,000 -10,000Total $110,500 $120,100 Accounts payable $12,370 $31,100 Common stock 75,000 69,000Retained earnings 23,130 20,000Total $110,500 $120,100 Additional information:1. Net income was $22,630. Dividends declared and paid were $19,5000.2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $4,900.Instructions(a) Prepare a statement of cash flows for 2011 using the indirect method.(b) Compute free cash flow.”
Exercise 13-12: Solitaire
11-22, 11-23,
13-12,
15-3, 15-4, 15-14, 21-20, 27-18
Recall from Exercise 11-22 that author A has a 1/9
probability of winning a game of solitaire.
a.
How many games does author A have to play
before you can use the CLT to reasonably
approximate the sampling distribution of
the sample proportion of wins for author A?
Explain.
b.
Repeat part a for author B, who has a 1/6
probability of winning a game of solitaire.
c.
Suppose that author B beats author A 80%
of the time at a different card game. How
many games do they have to play for the
CLT to reasonably approximate the sampling
distribution of the sample proportion of wins
for author B? Explain.
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