• Q : Net cash used in investing....
    Accounting Basics :

    In Motley 2011 statement of cash flows, net cash used in investing should be:

  • Q : What was the break-even point....
    Accounting Basics :

    Last year Easton Company reoprted sales of $720,000, a contribution margin ratio of 30% and a net loss of $24,000. Based on this information,  what was the break-even point ?

  • Q : Net cash used in investing....
    Accounting Basics :

    In Motley 2011 statement of cash flows, net cash used in investing should be:

  • Q : What would be the impact on the net income....
    Accounting Basics :

    What could management do to reduce the overhead costs assigned to these video projectors? What would be the impact on the net income of reducing overhead assigned to the video projectors?

  • Q : Prepare journal entry to distribute remaining cash partners....
    Accounting Basics :

    The BlueFin Partnership agrees to dissolve. The remaining cash balance after liquidating partnership assets and liabilities is $60,000. The final capital account balances are: Smith, $30,000; Nagy,

  • Q : What is the return on equity....
    Accounting Basics :

    Webster & Jones has net income of $49,200, sales of $936,800, a capital intensity ratio of 0.74, and an equity multiplier of 1.5. What is the return on equity?

  • Q : Calculate the amount of interest capitalized for 2011....
    Accounting Basics :

    On January 2, 2011, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2012.

  • Q : Estimated cost of the merchandise inventory....
    Accounting Basics :

    On the basis of the following data, what is the estimated cost of the merchandise inventory on May 31 using the retail method?

  • Q : What is the amount of the distribution....
    Accounting Basics :

    Beane Office Equipment, Inc. distributed $5,000 in cash plus land with an adjusted basis of $90,000 and a fair market value of $75,000 to its sole shareholder. The land was subject to a $40,000 mort

  • Q : Setting a price fo the special order....
    Accounting Basics :

    What other factors might the general manager want to consider in setting a price fo the special order?

  • Q : Amount of overhead debited to work in process inventory....
    Accounting Basics :

    For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $350,000 of factory labor costs are incurred of which $100,000 is indirect labor. Actual overhead i

  • Q : Straight-line method of depreciation used on scanner....
    Accounting Basics :

    On January 2, 2011, Kinnaird Hospital purchased a $100,000 special radiology scanner from Faital Inc. The scanner has a useful life of 5 years and will have no disposal value at the end of its usefu

  • Q : What is the npv of each project....
    Accounting Basics :

    Assume the expected return on the market portfolio is 15% and the riskless return is 9%. Also assume that all of the projects listed here are perpetuities with annual cash flows (in $) and betas as

  • Q : Eliminated in the consolidation process....
    Accounting Basics :

    The inventory cost Yukon $260,000 and was sold to Ontario for $390,000. Ontario still had $60,000 of the goods in its inventory at the end of the year. The amount of unrealized intercompany profit t

  • Q : What cost for wood should have been incurred....
    Accounting Basics :

    The company's standards for one chopping board are 2.5 board feet of hardwood, at a cost of $1.80 per board foot.

  • Q : Target after-tax net income....
    Accounting Basics :

    Apollo Company management targets an annual after-tax income of $840,000. The company is subject to a 20% income tax rate. Assume that fixed costs remain at $630,000. Compute the (1) unit sales to e

  • Q : Contribution margin and breakeven....
    Accounting Basics :

    Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company’s annual fixed costs are $630,000.

  • Q : Prepare a single-step income statement for 2010....
    Accounting Basics :

    The following information was taken from the records of Gibson Inc. for the year 2010. Income tax applicable to income from continuing operations $119,000;

  • Q : Considered an extraordinary item....
    Accounting Basics :

    Which of the following items is not likely to be considered an extraordinary item?

  • Q : Postbalance sheet date audit procedures....
    Accounting Basics :

    Subsequent to the date of the financial statements as part of her postbalance sheet date audit procedures, a CPA learned of heavy damage to one of the client's two plants due to a recent fire; the l

  • Q : What is the amount of ending inventory on december 31....
    Accounting Basics :

    A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the aver

  • Q : Materials price variance....
    Accounting Basics :

    An examination of the cost records of the Williams Furniture Company reveals that the materials price variance is favorable but the materials quantity variance is unfavorable by a substantial amount

  • Q : What is net present value of the proposed new assembly line....
    Accounting Basics :

    SCC Bhd needs $4 million to built a new assembly line. The target debt to equity ratio is 1.0. It is expected to generate after tax cashflow of $500,000 per tear forever.

  • Q : Problem based on equity multiplier....
    Accounting Basics :

    Manufacturer A has a profit margin of 2.0%, an asset turnover of 1.7 and an equity multiplier of 4.9. Manufacturer B has a profit margin of 2.3%, an asset turnover of 1.1 and an equity multiplier of

  • Q : What amount could be claimed....
    Accounting Basics :

    what amount could be claimed on Welch's 2009 income tax return for medical expenses?  

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