Here are comparative statement data for Crane Company and Sheridan Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.
Crane Company Sheridan Company
2017 2016 2017 2016
Net sales $1,855,000 $596,000
Cost of goods sold 1,063,000 291,000
Operating expenses 265,000 89,000
Interest expense 8,600 3,200
Income tax expense 74,900 35,000
Current assets 534,599 $512,352 136,671 $130,326
Plant assets (net) 863,952 820,000 229,154 206,332
Current liabilities 08,773 124,337 57,971 49,661
Long-term liabilities 186,944 147,600 48,577 41,000
Common stock, $10 par 820,000 820,000 196,800 196,800
Retained earnings 282,834 240,416 62,477 49,197
Prepare a vertical analysis of the 2017 income statement data for Crane Company and Sheridan Company.

Answer:

Please see attached.

Explanation:

Please see attached vertical analysis of the 2017 income statement data for Crane company and Sheridan company.

Note: The percent for each company - Crane and Sheridan is arrived at by dividing each item( expense or income) by sales multiplied by 100.

For instance for Crane, the percentage for Gross profit is = ($792,000 / $1,855,000 ) × 100

= 42.7%

A diet is to contain at least 3640 mg vitamin C, 2190 mg Calcium, and 2170 calories every day. Two foods, a dairy-based meal and a vegan option are to fulfill these requirements. Each ounce of the dairy-based meal provides 40 mg vitamin C, 30 mg Calcium, and 10 calories. Each ounce of the vegan option provides 60 mg vitamin C, 30 mg Calcium, and 50 calories. If the dairy-based meal costs $0.21 per ounce and the vegan option costs $0.27 per ounce.

Required:
a. How many ounces of each food should be purchased to minimize costs?
b. What is that minimum cost (per day)?

Bird Corp.'s trademark was licensed to Brian Co. for royalties of 15% of the sales of the trademarked items. Royalties are payable semiannually on March 15 for sales in July through December of the prior year, and on September 15 for sales in January through June of the same year. Bird received the following royalties from Brian:
March 15 September 15
20X4 $5,000 $7,500
20X5 6,000 8,500
Brian estimated that the sales of the trademarked items would total $30,000 for July through December 20X5. In Bird's 20X5 Income Statement, the royalty revenue should be:______.
a. $13,000.
b. $14,500.
c. $19,000.
d. $20,500.

In its first year of business, Borden Corporation had sales of $2,020,000 and cost of goods sold of $1,210,000. Borden expects returns in the following year to equal 6% of sales. The adjusting entry or entries to record the expected sales returns is (are):

You pay your neighbor $100 in exchange for the used washing machine she is selling. Your neighbor puts that $100 into her pocket and takes her family out to the movies and a nice dinner at the end of the week. She still has $20 left after this outing and decides to put the remaining $20 into her savings account. This is an example of:

Question 5
1 pts
The optimal level of inflation is not zero
True
False

The transactions listed below are typical of those involving Amalgamated Textiles and American Fashions. Amalgamated is a wholesale merchandiser and American Fashions is a retail merchandiser. Assume all sales of merchandise from Amalgamated to American Fashions are made with terms n/60, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31.

Amalgamated sold merchandise to American Fashions at a selling price of $230,000. The merchandise had cost Amalgamated $175,000. Two days later, American Fashions returned goods that had been sold to the company at a price of $20,000 and complained to Amalgamated that some of the remaining merchandise differed from what American Fashions had ordered. Amalgamated agreed to give an allowance of $5,000 to American Fashions. The goods returned by American Fashions had cost Amalgamated $15,270. Just three days later, American Fashions paid Amalgamated, which settled all amounts owed.

Required:
a. Indicate the effect (direction and amount) of each transaction on the Inventory balance of Readers' Corner.
b. Prepare the journal entries that Readers’ Corner would record and show any computations.

Yesterday, Casey received a cable company ad for bundled TV, telephone, and Internet service that cost appreciably more than what she is currently paying. At the same time, she received a notice from her utility company that summer rates would be increasing. Her schoolbooks are costing almost twice what they cost last year, and yesterday, gasoline cost her 30 cents more per gallon than it did last week. As she ponders the situation, she can't help but wonder how prices could be rising when so many people have lost their jobs and are cutting back on expenditures. She is certain that this situation characterizes her economics professor's description of stagflation.

a. True
b. False

Linder Corporation invested $70,000 cash in marketable securities on September 1. On September 7 the company sold $10,000 of these investments for $15,000. On September 28 Linder sold $6,000 of the securities for $4,000.

Required:
a. Record the purchase of marketable securities on September 1.
b. Record the sale of marketable securities on September 7.
c. Record the additional sale of marketable securities on September 28.
d. Record the necessary month end fair value adjustment on September 30. The market price for Linder Corporation's remaining unsold securities was $58,000.

The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.
Accounts Debit Credit
Cash $12,000
Accounts Receivable 150,000
Prepaid Rent 6,000
Supplies 30,000
Equipment 400,000
Accumulated Depreciation $135,000
Accounts Payable 12,000
Salaries Payable 11,000
Interest Payable 5,000
Notes Payable (due in two years) 40,000
Common Stock 300,000
Retained Earnings 60,000
Service Revenue 500,000
Salaries Expense 400,000
Rent Expense 20,000
Depreciation Expense 40,000
Interest Expense 5,000
Totals $1,063,000 $1,063,000
Accounts Debit Credit
Service Revenue 500,000
Salaries Expense 400,000
Rent Expense 20,000
Depreciation Expense 40,000
Interest Expense 5,000
Total $1,063,000 $1,063,000
Required:
1. Prepare an income statement for the year ended December 31, 2021.
2. Prepare a statement of stockholders' equity for the year ended December 31, 2021, assuming no common stock was issued during 2021.
3. Prepare a classified balance sheet as of December 31, 2021.

Assignment 3 Suggested Length: 750 to 1000 words Ethical Theories to Apply: Golden Rule and Virtue Ethics

1. Task You work in the Ethics Department for ABC Company (ABC). Your department is dedicated to advising its employees about their ethical obligations in the corporate setting. You are an internal consultant who provides advice and most importantly, recommendations for action to employees of the firm. All communications you receive in this capacity are confidential. Luke, an employee of ABC, comes to you with the following scenario and asks for your advice. He wants to fully consider the situation. Your task is to advise and recommend a course of action based on the specified ethical lenses and facts as given. Below are the facts that Luke provides to you. ***** Luke has been asked to work on a project that involves developing land recently purchased by ABC to build an adult entertainment retail store. According to the plan, the land is located on the corner of the neighborhood where Owen, Luke’s brother, lives. Luke knows that as soon as the plans for the store are made public, property values for the surrounding neighborhood will decrease significantly. ABC plans to publicly announce the project one month from today. Luke is concerned about his obligations of confidentiality to his company. However, Luke is also very close to Owen, who recently told Luke that he received an offer to sell his house at an "okay" price given the current real estate market. Owen is considering selling but hasn’t made any final decision yet. He wonders if he might get a better offer a few years from now when the real estate market improves. What is the ethical issue, why is this an issue, and what should Luke do about it?

***** For assignment 3, prepare a memo, setting out your analysis and recommendations, that considers ONLY the following two theories: Golden Rule and Virtue Ethics.

Nanjones Company manufactures a line of products distributed nationally through wholesalers. Presented below are planned manufacturing data for the year and actual data for November of the current year. The company applies overhead based on planned machine hours using a predetermined annual rate.


Planning Data

Annual November

Fixed manufacturing overhead $1,200,000 $100,000
Variable manufacturing overhead 2,400,000 220,000
Direct labor hours 48,000 4,000
Machine hours 240,000 20,000

Data for November

Direct labor hours (actual) 4,200
Direct labor hours (plan based on output) 4,000
Machine hours (actual) 21,600
Machine hours (plan based on output) 21,000
Fixed manufacturing overhead $101,200
Variable manufacturing overhead $214,000


The fixed overhead volume variance for November was

a. $1,200 unfavorable.
b. $5,000 favorable.
c. $5,000 unfavorable.
d. $10,000 favorable.

Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc and Michelle also paid $2,500 of qualifying moving expenses, and Marc paid alimony to a prior spouse in the amount of $1,500. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year.

a) What is Marc and Michelle’s gross income?

b) What is Marc and Michelle’s adjusted gross income?

c) What is the total amount of Marc and Michelle’s deductions from AGI?

d) What is Marc and Michelle’s taxable income?

e) What is Marc and Michelle’s taxes payable or refund due for the year? (Use the tax rate schedules.)

f) Complete the first two pages of Marc and Michelle’s Form 1040 (use 2015 forms if 2016 forms are unavailable).

So you want to finance a car for $4,840. Let’s say we offer you a 4.5% interest rate on a 2-year loan and 6% on a 5-year loan. Enter this info into the calculator to see your monthly and total cost by loan term.
Financing Amount
$4840
Correct
Interest Rate on 2-Year Loan
Interest Rate on 5-Year Loan

Which franchise model do automobile dealerships usually follow?

Consider a simple example economy where there are two goods, coconuts and restaurant meals (coconut-based). There are two firms. A coconut producer collects and sells 10 million coconuts at $2.00 each. The firm pays $5 million in wages, $0.5 million in interest on an old loan, and $1.5 million in taxes to the government. We also know that 4 million coconuts are sold to the public for consumption, and 6 million coconuts are sold to the restaurant firm, which uses them to prepare meals. The restaurant sells $30 million in meals. The restaurant pays $4 million in wages and the government $3 million in taxes. The government supplies security and accounting services and employs only labor, and government workers are paid $5.5 million, collected in taxed by the government. Finally, consumers pay $1 million in taxes to the government in addition to the taxes paid by the two firms.

Required:
a. Compute GDP for this simple economy using the product approach.
b. Compute GDP for this simple economy using the expenditure approach.
c. Compute GDP for this simple economy using the income approach.
d. Now, suppose that the coconut producer cannot sell 1 million coconuts during the course of the year. These are collected coconuts that are not sold to the public (assume that sales to the other firm, the restaurant, remain the same).
e. How does this new piece of information affect your calculations in the expenditure approach? Explain.

Many assets provide a series of cash inflows over time; and many obligations require a series of payments. When the payments are equal and are made at fixed intervals, the series is an annuity. There are three types of annuities: (1) __________ (2)_________, and (3) __________-. One can find an annuity's future and present values, the interest rate built into annuity contracts, and the length of time it takes to reach a financial goal using an annuity.

Federated Fabrications leased a tooling machine on January 1, 2021, for a three-year period ending December 31, 2023. The lease agreement specified annual payments of $48,000 beginning with the first payment at the beginning of the lease, and each December 31 through 2022. The company had the option to purchase the machine on December 30, 2023, for $57,000 when its fair value was expected to be $72,000, a sufficient difference that exercise seems reasonably certain. The machine's estimated useful life was six years with no salvage value. Federated was aware that the lessor’s implicit rate of return was 10%.

Required:
a. Calculate the amount Federated should record as a right-of-use asset and lease liability for this finance lease.
b. Prepare an amortization schedule that describes the pattern of interest expense for Federated over the lease term.
c. Prepare the appropriate entries for Federated from the beginning of the lease through the end of the lease term.

Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the New York Stock Exchange. In this transaction, __________ is a financial instrument, __________ is a financial institution, and __________ represents a financial market.

Martinez Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.

Projected Benefit Obligation Plan Assets Value
2019 $2,340,000 $2,223,000
2020 2,808,000 2,925,000
2021 3,451,500 3,042,000
2022 4,212,000 3,510,000

The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows:

2019, $327,600 loss; 2020, $105,300 loss; 2021, $12,870 loss; and 2022, $29,250 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)

Required:
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.

Year Minimum Amortization of Loss
2013 $
2014 $
2015 $
2016 $

The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021:

Penske Stanza
Revenues $(842,000 ) $(568,000 )
Cost of goods sold 299,700 142,000
Depreciation expense 207,000 304,000
Investment income Not given 0
Dividends declared 80,000 60,000
Retained earnings, 1/1/21 (668,000 ) (222,000 )
Current assets 572,000 566,000
Copyrights 1,076,000 449,500
Royalty agreements 604,000 1,180,000
Investment in Stanza Not given 0
Liabilities (546,000 ) (1,631,500 )
Common stock (600,000 )($20 par) (200,000 ) ($10 par)
Additional paid-in capital 150,000 80,000


On January 1, 2013, Penske acquired all of Stanza's outstanding stock for $680,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition copyrights (with a six-year remaining life) have a $440,000 book value but a fair value of $560,000.

a. As of December 31,2013, what is the consolidated copyrights balance?
b. For the year ending December 31,2013, what is consolidated net income?
c. As of December 31,2013, what is the consolidated retained earnings balance?
d. As of December 31,2013, what is the consolidated balance to be reported for goodwill?

Question 5 of 10
Why do business often add fees to their invoices?
O A. To help pay for business expenses
B. To attract new customers
C. To reward customers' for their loyalty
D. To make more profit than their competitors

Presented below is information from Headland Computers Incorporated.
July 1 Sold $22,600 of computers to Robertson Company with terms 3/15, n/60. Headland uses the gross method to record cash discounts. Headland estimates allowances of $1,334 will be honored on these sales.
10 Headland received payment from Robertson for the full amount owed from the July transactions.
17 Sold $256,100 in computers and peripherals to The Clark Store with terms of 2/10, n/30.
30 The Clark Store paid Headland for its purchase of July 17.

You are preparing the financial statements for the Johnson family. To begin with you just want to identify each line and indicate where it will be going (e.g. Balance Sheet, Income Statement). Just write Balance Sheet and or Income statement next to each line.

Home Value $549,000
Joint Savings balance $5,400
Tom's 2014 Salary Before Taxes was $78,000
Kate's 2014 Salary Before Taxes was $84,000
Fed income taxes, state income taxes and FICA combined totaled $46,120 (paid)
2014 property taxes were $14,000 (paid)
Mortgage $300,000
House Payment plus insurance per month $2400
Kate bought Microsoft stock in 2012 and they still own it. It's worth $40,0000
Tom's 401k at work has several mutual funds worth a total of $120,000
Tom has a 2002 VW GTI worth about $3,000
Kate has a 2013 Audi S6 worth about $35,000
Car loan on Audi totals is $25,000
Car Payment is $1583
Car insurance for 2014 was $2000 (paid)
Credit Card Balance $4,000
Tom's monthly contribution o his 401k is $1,000
Joint Checing account balance $1,200

In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $194.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $76 million at the end of 2022. Taxable income is $760 million. Prepare the appropriate journal entry to record income taxes Iin 2022.
Transaction General Journal Debit Credit
Income tax expense
Deferred tax asset
Income taxes payable 340.0

Kim Co. purchased goods with a list price of $175,000, subject to trade discounts of 20% and 10%, with no cash discounts allowable. How much should Kim Co. record as the cost of these goods

If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:

In 2013, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:
Basic research to develop the technology $ 2,000,000
Engineering design work 680,000
Development of a prototype device 300,000
Acquisition of equipment 60,000
Testing and modification of the prototype 200,000
Legal and other fees for patent application on the new
communication system 40,000
Legal fees for successful defense of the new patent 20,000
Total $ 3,300,000
The equipment will be used on this and other research projects. Depreciation on the equipment for 2013 is $10,000.
During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.
Required:
Prepare correcting entries that reflect the appropriate treatment of the expenditures.
1. Record the correcting entry to expense R&D costs incorrectly capitalized
2. Record the correcting entry to capitalize the cost of equipment incorrectly capitalized as a patent.
3. Record the correcting entry to record depreciation on equipment used in R&D projects.

a. On December 31, Gina receives a distribution of $140,000 cash in liquidation of her partnership interest. Nothing is stated in the partnership agreement about goodwill. Gina's outside basis for the partnership interest immediately before the distribution is $90,000. (1) How much is Gina's recognized gain from the distribution

FlanCrest Enterprises is a mid-sized auto supply company that manufactures electronic components for cars. It has approximately 200 employees, with about 150 working on the production line. Its primary customer is Widespread Motors, a large international auto manufacturer. Widespread Motors primarily sells their cars based on price, aiming to make the prices as low as possible in any particular market segment. The cars may not have as many features, but still operate and cost less than those of their competitors. FlanCrest, under the direction of Widespread, has been asked to reduce the price of its electronic components for the next order due to competitive pressure in the market for Widespread's best-selling car. To cut its prices and keep its biggest customer, FlanCrest announces that they will be eliminating the popular community college tuition reimbursement program and eliminating all overtime for production workers.
Which of the below choices most accurately describes the new HR strategy at FlanCrest Enterprises?
a. Commitment, because they are demonstrating commitment to the development of their workforce
b. Control, because they are attempting to control employees within the workplace
c. Commitment, because they are demonstrating commitment to their key customers
d. Control, because they are attempting to minimize labor costs

Theresa works as a Risk Management Specialist for an investment corporation. Which best describes her educational pathway?

A. an associate’s degree, then a bachelor’s degree
B. a master’s degree, then vocational school
C. vocational school, then an associate’s degree
D. a bachelor’s degree, then a master’s degree