• Q : Pay-back period for the machine....
    Accounting Basics :

    A company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000 and which is expected to reduce operating costs by $20,000 each year. The payback period for t

  • Q : Statement of cash flows prepared under indirect process....
    Accounting Basics :

    An increase in the plant and equipment account of $100,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as:

  • Q : Cash-flows prepared under the indirect method....
    Accounting Basics :

    An increase in the bonds payable account of $200,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as:

  • Q : Company return on total assets for the year....
    Accounting Basics :

    Braverman Company's net income last year was $75,000 and its interest expense was $10,000. Total assets at the beginning of the year were $650,000 and total assets at the end of the year were $610,0

  • Q : Prepaid expenses and inventories....
    Accounting Basics :

    The company has no prepaid expenses and inventories remained unchanged during the year. Based on these data, the company's inventory turnover ratio for the year was closest to:

  • Q : Company accounts receivable turnover....
    Accounting Basics :

    Frantic Company had $130,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000. The company's accounts rece

  • Q : Company average collection period....
    Accounting Basics :

    Granger Company had $180,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $18,000. The company's average colle

  • Q : How direct costs of special fund raising events....
    Accounting Basics :

    Explain or illustrate how the direct costs of these special fund raising events atre to be reported. Also, may these nongovernment organizations report the special event using the net method?

  • Q : Income from operations before service department....
    Accounting Basics :

    Income from operations for division K is 120,000, and income from operations before service department charge is 975,000 therefore:

  • Q : Debt securities acquired by a corporation....
    Accounting Basics :

    Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses and are included as other comprehensive income and as a separate component of stoc

  • Q : Record the treasury stock transactions basics....
    Accounting Basics :

    King Co. issued 100,000 shares of $10 par common stock for $1,200,000. King acquired 8,000 shares of its own common stock at $15 per share. Three months later King sold 4,000 of these shares at $19

  • Q : Record the sale of the shares....
    Accounting Basics :

    The market value of Gannon's common stock was $24 per share at December 31, 2006, and $25 per share at December 31, 2007. The cost method is used to record treasury stock transactions. What account(

  • Q : Journal entry to record the reacquisition of the stock....
    Accounting Basics :

    On September 1, 2008, Zelner Company reacquired 12,000 shares of its $10 par value common stock for $15 per share. Zelner uses the cost method to account for treasury stock. The journal entry to rec

  • Q : Total paid-in capital amounted....
    Accounting Basics :

    At the end of the Adler's first year, total paid-in capital amounted to:

  • Q : Allocation to the common stock....
    Accounting Basics :

    Bleeker Company issued 10,000 shares of its $5 par value common stock having a market value of $25 per share and 15,000 shares of its $15 par value preferred stock having a market value of $20 per s

  • Q : Cost-benefit analysis of cash management....
    Accounting Basics :

    Cost-benefit analysis of cash management City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement cent

  • Q : Calculate the weighted average cost of capital....
    Accounting Basics :

    The book value of a group's outstanding debt is $60 million. the debt is trading at 120% of book value and is priced to yield 12%. the 5 million outstanding shares of business stock are trading at $

  • Q : Income statement from the investment....
    Accounting Basics :

    Menke uses straight-line amortization. Ignoring income taxes, the amount reported in Menke's 2010 income statement from this investment should be ??

  • Q : Evaluate the cash conversion cycle....
    Accounting Basics :

    What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18 mill

  • Q : Determining the rate of return for an investor....
    Accounting Basics :

    What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19?

  • Q : What debt-equity ratio should be used....
    Accounting Basics :

    A firm has an expected return on equity of 16% and an after-tax cost of debt of 8%. What debt-equity ratio should be used in order to keep the WACC at 12%?

  • Q : Entity balance sheet showed total assets....
    Accounting Basics :

    On January 31, an entity's balance sheet showed total assets of $750 and liabilities of $250. Owners' equity at January 31 was:

  • Q : Potential investor-accounting information....
    Accounting Basics :

    Which of the following is not an example of a decision or informed judgment that a potential investor would make from accounting information?

  • Q : What are the cash flows associated with the machine....
    Accounting Basics :

    Sussman Industries purchased drilling machine for $50000 and paid cash. Sussman expects to use the machine for ten year after which it will have no value. It will be depreciated straight-line over t

  • Q : Materials price variance-materials quantity variance....
    Accounting Basics :

    Break down the difference computed in (1) above into a materials price variance and a materials quantity variance.

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