Get Expert Solutions to Accounting Questions at Homeworknest.com in 2hours!

Accounting Questions – Get Expert Solutions at Homeworknest.com in 5 hours!

Quiz 1.

Analyzing the Airline Industry C 3. Divide into groups. Assume your group is analyzing the fate of the larger airlines, such as United and American. You have the following information: a. Between 1999 and now, the long-term debt, including lease obligations, of the largest airlines more than doubled. b. The price of fuel has increased by one-third. c. Passenger loads are only now getting back to pre-9/11 levels. d. Severe price competition from discount airlines exists. Identify the ratios that you consider most important to consider in assessing the future of the large airlines and discuss the effect of each of the above factors on the ratios. Be prepared to present all or part of your findings in class.

Quiz 2.

Using Investors’ Services C 2. Go to the website for Moody’s Investors Service. Click on “ratings,” which will show revisions of debt ratings issued by Moody’s in the past few days. Choose a rating that has been upgraded or downgraded and read the short press announcement related to it. What reasons does Moody’s give for the change in rating? What is Moody’s assessment of the future of the company or institution? What financial performance measures are mentioned in the article? Summarize your findings and be prepared to share them in class.

 

Quiz 3.

ffect of a One-Time Item on a Loan Decision C 5. Apple a Day, Inc., and Unforgettable Edibles, Inc. are food catering businesses that operate in the same metropolitan area. Their customers include Fortune 500 companies, regional firms, and individuals. The two firms reported similar profit margins for the current year, and both base bonuses for managers on the achievement of a target profit margin and return on equity. Each firm has submitted a loan request to you, a loan officer for City National Bank. They have provided you with the following information:

 

Quiz 4.

Comparison of International Companies’ Operating Cycles C 4. Ratio analysis enables one to compare the performance of companies whose financial statements are presented in different currencies. Selected data from 2006 for two large pharmaceutical companies—one American, Pfizer, Inc., and one Swiss, Roche—are presented next (in millions).15

For each company, calculate the receivable turnover, days’ sales uncollected, inventory turnover, days’ inventory on hand, payables turnover, and days’ payable. Then determine the operating cycle and days of financing required for each company. (Accounts receivable in 2005 were $9,103 for Pfizer and SF7,698 for Roche. Inventories in 2005 were $5,478 for Pfizer and SF5,041 for Roche. Accounts payable in 2005 were $2,073 for Pfizer and SF2,373 for Roche.) Prepare a memo containing your analysis of the operating cycles of these companies.

 

Quiz 5.

Do you think it is acceptable to change the bonus targets for executives during the year if the year turns out to be not as successful as planned? What if an unexpected, world-shaking event occurs and has a negative effect on business, such as 9/11 had on the airline industry? What are three standards of comparison? Which of these might justify changing the bonus targets during the year?

Quiz 6.

Executive Compensation C 1. Executive compensation is often based on meeting certain targets for revenue growth, earnings, earnings per share, return on assets, or other performance measures. But what if performance is not living up to expectations? Some companies are simply changing the targets. For instance, Sun Microsystems’ proxy as quoted in the Wall Street Journal states that “due to economic challenges experienced during the last fiscal year, our earnings per share and revenues are significantly below plan. As such, the Bonus Plan was amended to reduce the target bonus to 50% of the original plan and base the target bonus solely on the third and fourth quarters.”14 Sun Microsystems was not alone. Other companies, such as AT&T Wireless, Estee Lauder, and UST, also lowered targets for executive bonuses.

Quiz 7.

Comprehensive Ratio Analysis of Two Companies P 10. Caitlin Cleary is considering an investment in the common stock of a chain of souvenir stores. She has narrowed her choice to two companies, Dover Corporation and Calais Corporation, whose income statements and balance sheets are presented here. During the year, Dover Corporation paid a total of $50,000 in dividends. The market price per share of its stock is currently $60. In comparison, Calais Corporation paid a total of $114,000 in dividends, and the current market price of its stock is $76 per share. Dover Corporation had net cash flows from operations of $271,500 and net capital expenditures of $625,000. Calais Corporation had net cash flows from operations of $492,500 and net capital expenditures of $1,050,000. Information for prior years is not readily available. Assume that all notes payable are current liabilities and all bonds payable are long-term liabilities and that there is no change in inventory.

Quiz 8.

Compare the two companies by inserting the ratio calculations from 1 through 5 in a table with the following column headings: Ratio, Name, Dover, Calais, and Company with More Favorable Ratio. Indicate in the last column which company had the more favorable ratio in each case.

 

Quiz 9.

James Smith, 45 years old, is new to your practice. This is your first

meeting with him, and you would like to ask him some questions

regarding his medication/health history. During the course of your

conversation you learn that he has a history of coronary heart

disease and is currently taking a baby aspirin each day. He takes

acetaminophen for general aches and pains. He also likes to have a

glass of wine with dinner each night and does not mind a few beers

when he is watching football. During the course of his examination

you and the dentist find two cavities, which are filled that day. Mr.

Smith is experiencing some mild pain after the procedure.

  1. What is the rationale for using acetaminophen instead of an

NSAID to treat Mr. Smith’s pain?

  1. What dose and duration of therapy should be recommended

for Mr. Smith?

  1. At what doses does hepatotoxicity occur with

acetaminophen?

  1. How can Mr. Smith avoid acetaminophen toxicity?
  2. Compare and contrast acetaminophen to aspirin in terms of

pharmacology, adverse effects, and therapeutic effects.

224

  1. What is the role of aspirin in the prevention of heart attack

or stroke?

  1. Are any dental concerns associated with low-dose aspirin

therapy?

  1. Can Mr. Smith take a drug like ibuprofen?
  2. What should be said to Mr. Smith during a counseling

session regarding acetaminophen?

 

Quiz 10.

Kellogg Company has its headquarters in Battle Creek, Michigan. The company manufactures and sells ready-to-eat breakfast cereals and convenience foods including cookies, toaster pastries, and cereal bars.

Selected data from Kellogg Company’s recent annual report follows (dollar amounts in millions).

Current Year Prior Year 2 Years Ago
Sales $14,580 $14,792 $14,197
Gross profit % 34.73 41.26 38.28
Operating profit 1,024 2,837 1,562
Net cash flow less capital expenditures 1,211 1,170 1,225
Net earnings 633 1,808 961

In its annual reports, Kellogg Company has indicated that it plans to achieve sustainability of its operating results with operating principles that emphasize profit-rich, sustainable sales growth, as well as cash flow and return on invested capital. Kellogg believes its steady earnings growth, strong cash flow, and continued investment during a multi-year period demonstrates the strength and flexibility of its business model.

Instructions

  1. Compute the percentage change in sales, operating profit, net cash flow less capital expenditures, and net earnings from year to year for the years presented.
  2. Evaluate Kellogg’s performance. Which trend seems most favorable? Which trend seems least favorable? What are the implications of these trends for Kellogg’s sustainable performance objectives? Explain.

 

 

Quiz 11.

Presented below is income statement information of the Schefter Corporation for the year ended December 31, 2021.

Sales revenue            $492,000                Cost of goods sold                 284,000
Salaries expense           80,000                 Insurance expense                  12,000
Interest revenue             6,000                 Interest expense                       4,000
Advertising expense     10,000                Income tax expense               30,000
Gain on sale of investments 8,000         Depreciation expense            20,000

Prepare the necessary closing entries at December 31, 2021.

 

 

Quiz 12.

Choose the correct.Rouge Company’s $250,000 net income for the quarter ended September 30 included the following after-tax items:
∙ A $20,000 cumulative effect loss resulting from a change in inventory valuation method made
on September 1.
∙ $0 of the $60,000 annual property taxes paid on February 1.
For the quarter ended September 30, the amount of net income that Rouge should report is
a. $235,000
b. $250,000
c. $255,000
d. $270,000

 

Quiz 13.

Analyzing profitability

Sampler Company sells two products, Sigma and Zeta, with a sales mix of 70% and 30%, respectively, Sigma has a contribution margin per unit of $26, and Zeta has a contribution margin per unit of $21. The company sold 700 total units in September. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin for the company.

 

Quiz 14.

 

The following are a series of unrelated situations.

  1. Halen Company’s unadjusted trial balance at December 31, 2020, included the following accounts.
Debit Credit
Accounts receivable $53,000
Allowance for doubtful accounts 4,000
Net sales $1,200,000

Halen Company estimates its bad debt expense to be 7% of gross accounts receivable. Determine its bad debt expense for 2020.

  1. An analysis and aging of Stuart Corp. accounts receivable at December 31, 2020, disclosed the following.
Amounts estimated to be uncollectible $ 180,000
Accounts receivable 1,750,000
Allowance for doubtful accounts (per books)  125,000

What is the net amount expected to be collected of Stuart’s receivables at December 31, 2020?

  1. Shore Co. provides for doubtful accounts based on 4% of gross accounts receivable, The following data are available for 2020.
Credit sales during 2020 $4,400,000
Bad debt expense 57,000
Allowance for doubtful accounts 1/1/20 17,000
Collection of accounts written off in prior years
(customer credit was reestablished)
8,000
Customer accounts written off as uncollectible
during 2020
30,000

What is the balance in Allowance for Doubtful Accounts at December 31, 2020?

  1. At the end of its first year of operations, December 31, 2020, Darden Inc. reported the following information.
Accounts receivable, net of allowance for doubtful accounts $950,000
Customer accounts written off as uncollectible during 2020 24,000
Bad debt expense for 2020 84,000

What should be the balance in accounts receivable at December 31, 2020, before subtracting the allowance for doubtful accounts?

  1. The following accounts were taken from Bullock Inc.’s trial balance at December 31, 2020.
Debit Credit
Net credit sales $750,000
Allowance for doubtful accounts $ 14,000
Accounts receivable  310,000

If doubtful accounts are 3% of accounts receivable, determine the bad debt expense to be reported for 2020.

Instructions

Answer the questions relating to each of the five independent situations as requested.

 

 

Quiz 15.

Journalizing the alternative treatment of deferred revenues

On September 1, 2018, Salem Landscaping collected $24,000 in advance from customers for landscaping services. The service revenue will be earned monthly over the 12-month period ending August 31, 2019.

Requirements

Journalize the entry on September 1 by using the alternative treatment of deferred revenues.

Record the December 31, 2018 adjusting entry.

 

Quiz 16.

Included in Outkast Company’s December 31, 2020, trial balance are the following accounts: Prepaid Rent $5,200, Debt Investments (to be held to maturity until 2023) $56,000, Unearned Fees $17,000, Land (held for investment) $39,000, and Notes Receivable (long-term) $42,000. Prepare the long-term investments section of the balance sheet.

 

Quiz 17.

Product Cost Method of Product Pricing

La Femme Accessories Inc. produces women's handbags. The cost of producing 1,100 handbags is as follows:

Direct materials $14,600
Direct labor 7,400
Factory overhead 6,400
Total manufacturing cost $28,400

The selling and administrative expenses are $28,700. The management desires a profit equal to 14% of invested assets of $498,000.

If required, round your answers to nearest whole number.\

Determine the selling price of handbags. Round your answers to nearest whole value.

Cost $per unit
Markup $per unit
Selling price $per unit

 

 

Quiz 18.

On August 3, Sonar Sales decides to establish a $275 petty cash fund to relieve the burden on Accounting.

(a) Journalize the establishment of this fund.*
(b) On August 11, the petty cash fund has receipts for mail and postage of $124.75, contributions and donations of $53.25, meals and entertainment of $63.85, and $32.75 in the ending cash balance. Journalize the replenishment of the fund.*
(c) On August 12, Sonar Sales decides to increase petty cash to $400. Journalize this transaction.*
*Refer to the Chart of Accounts for exact wording of account titles.

 

 

Quiz 19.

  1. The trend of PepsiCo’s stock price and price/earnings (P/E) ratio for the seven years shown.
  2. PepsiCo’s prospects, including developments likely to affect the company’s future.
  3. Trend Analysis E 7. Using 2006 as the base year, prepare a trend analysis of the following data, and tell whether the situation shown by the trends is favorable or unfavorable. (Round your answers to one decimal place.)

Ace My Homework, AceMyHomework com, AceMyHomework Shutdown, AceMyHomework to Homeworknest.com, and Calculus Engineering Questions, Best Homework Help Website, Best website for college Asignments Help, Cheap Assignments Help, Chinese student Homework Help, College Lifestyle, College Math Help, College professor, College Professors, College roommates, CouponLx, CouponLx Homework Nest, Covid-19 Homework tests, Exam day, Exam stress, Fall Semester, Free Books with All college Subject Assignment Answers, Free Homework Help, Group project, Homework during lockdown, Homework EBooks 2020, Homework Help, Homework Help App, Homework help on Google, Homework Study music On YouTube, Introverted students, Math is Fun, Math Org Forums, Memory techniques, New semester, Online tools, Online tutor, Online Tutoring, Online Tutors, Operations Management, Permutations, PHD thesis topics, PHD Thesis Writer, Procrastination, Productivity, Reading list, Resume boosting jobs, School and Work, School and work balance, Sociology Questions, Spring Semester, Student budget, Study apps, Study Break, Study Tips, Summer Break, Summer course, Summer job, website for hmeworkhelp like coursemerit, website for hmeworkhelp like ninjaessays, website for hmeworkhelp like studypool, Website for Homework Help Like AceMyHomework, website similar to AceMyHomework.com, write my essay

Quiz 20.

On June 1, Guitar Magazine collected cash of $51,000 on future annual subscriptions starting on July 1.

Requirements

  1. Journalize the transaction to record the collection of cash on June 1.
  2. Journalize the transaction required at December 31, the magazine’s year-end, assuming no revenue earned has been recorded. (Round adjustment to the nearest whole dollar.)

 

 

Published by

Support

My background is in engineering, IT and business. I am a chief operative and co-founder of Homework Nest (www.homeworknest.com). I am committed to oversee homework nest to give its clients value for money. Success is my drive. Good Grades is Our Collective Goal!

Leave a Reply

Your email address will not be published. Required fields are marked *