Question & Answer

Identify and explain the major steps involved in preparing the statement of cash flows.

How does unearned revenue arise? Why can it be classified properly as a current liability? Give several examples of business activities that result in unearned revenues.

Assume that ACW Corporation has 2024 taxable income of $1,500,000 for purposes of computing the §179 expense. The company acquired the following assets during 2024 (assume no bonus depreciation):

The inspection department in an automobile final assembly plant inspects cars coming off the production line against 55 quality features considered important to customer satisfaction. The department counts the number of defects found per 100 cars, which is the same type of metric used by a national consumer advocate agency. During a one-month period, a total of 16,582 cars rolled off the assembly line. These cars included a total of 6045 defects of the 55 features, which translates to 36.5 defects per 100 cars. In addition, a total of 1955 cars had one or more of the defects during this month. Determine DPMO, DPM, and DUPM in a Six Sigma program for these data and convert each to its corresponding sigma level.

Identify some of the characteristic properties of composite materials.

What is the difference in melting characteristics between a pure metal element and an alloy metal?

What is meant by the term green compact?

Presented below is the trial balance of Thompson Corporation at December 31, 2014.   A physical count of inventory on December 31 resulted in an inventory amount of $64,000; thus, cost of goods sold for 2014 is $645,000. Instructions Prepare a single-step income statement and a retained earnings statement. Assume that the only changes in retained earnings during the current year were from net income and dividends. Thirty thousand shares of common stock were outstanding the entire year.

Normal and abnormal spoilage Franklin Fabrication produces custom-made security doors and gates. Currently two jobs are in process, 359 and 360. During production of Job 359, the supervisor was on holidays and the employees made several errors in cutting the metal pieces for the two doors in the order. The spoiled metal pieces cost $20 each and had zero scrap value. In addition, an order of five gates that had been manufactured for Job 360 required a fine wire mesh that sometimes tore as it was being mounted. Because a similar wire could be used that was much easier to install, the customer had been warned that costs could run over the bid if any difficulty was encountered in installing the wire. One of the gates was spoiled during the process of installing the wire. The cost of the materials and direct labour for the gate was $150. The gate and metal were hauled to the dump and discarded.   Required (a)          Should the spoilage for Job 359 be categorised as normal or abnormal spoilage? Explain. (b)          Should the spoilage for Job 360 be categorised as normal or abnormal spoilage? Explain. (c)           Prepare spoilage journal entries for both jobs.

Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds.  Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe?  What is their average tax rate?  What is their effective tax rate?  What is their current marginal tax rate?

Ethical decision-making timely reporting of sustainability budget problems A dilemma that individuals face is whether to be truthful when it appears that a project is over budget. Being over budget typically means that actual costs exceed budgeted costs or that a planned timeline will not be met. People often delay reporting an over-budget condition either because they believe they can catch up later or because they wish to delay negative repercussions. Unfortunately, information delays prevent managers from responding rapidly and decisively to delays in project timing and cost overruns, leading to additional dissatisfaction and inefficiencies.   Suppose an energy company establishes a budget of professional hours for a particular sustainability audit job. The hours are broken down by audit area with one area being the valuation of ‘clean energy’ inventory and cost of goods sold. During the last year, the audit client adopted new procedures for assigning product costs to individual units. The audit budget includes extra hours for the estimated time needed to document and assess the reasonableness of the new method.   Many factors could cause this part of the audit to be over budget. Consider the following two scenarios: 1.       The client failed to establish appropriate records needed to easily audit the new method, and this part of the audit will require more than the budgeted time to complete. 2.       The auditor assigned to this part of the audit is inexperienced and is unable to complete the work in the budgeted time.   Regardless of the reason for the overage, managers in charge of the audit need to be notified as soon as possible so that they can consider possible ways to realign staff and complete the total job on time. In addition, in the first scenario the audit entity might be able to bill the client for the extra work involved if the audit contract includes a provision for such price adjustments. However, this scenario would most likely require the client to be notified promptly, while the work is still being performed. In the second scenario, the overage may result in a poor performance evaluation, especially if the auditor has similar problems in other audit areas. Yet the overage may be considered reasonable in light of the auditor’s inexperience. Even so, the auditor should be able to accomplish the following: ·           develop alternative estimates of time and resource requirements for a project ·           effectively facilitate and control the project process and take corrective action as needed Therefore, the auditor must quickly recognise an impending overage and formulate appropriate strategies for completing the task as efficiently as possible. The auditor also needs to keep her supervisor apprised of the situation and seek help, when needed.       Required (a)     Have you ever failed to meet a deadline on a group project? If so, what were the reasons for the delay? When and how did you report the delay to your team members? Has someone else ever failed to meet a deadline? Does a failure to meet an agreed-upon deadline create an ethical problem? Why? (b)     Explore the responsibilities, expectations, assumptions, incentives, and consequences for this problem from different perspectives, including: §  the team member who is late §  other team members §  the team’s client. (c)     Draft a policy statement that you could adopt with future team members to handle project delays. How might this policy lead to improved team performance? (d)     Think about your future career. How can you work toward developing your professional responsibility as a member of a work team? (LO 2 and 5)

Why might borrowing rates sometimes rise following a negative demand shock?

1.    As an administrator for a medium sized hospital, you and the board of directors have decided to change the business from a short-term, acute-care facility to a drug dependency hospital. How would you go about executing this strategy?

Identify some of the important properties of fiber-reinforced plastic composite materials

What types of financial institutions finance residential mortgages? What type of financial institution finances the majority of commercial mortgages? (LO1)

Explain how margin requirements can affect the potential return and risk from investing in a stock. What is the maintenance margin? (LO1)

Back Bay Insurance Company negotiated a callable swap involving fixed payments in exchange for floating payments. Assume that interest rates decline consistently up until the swap maturity date. Do you think Back Bay might terminate the swap prior to maturity? Explain. (LO2)

Explain how economic growth affects the valuation of a stock. (LO3)

Balanced scorecard indicators Comment on how the inclusion of environmental and social indicators in a balanced scorecard might contribute to an organisation’s profitability.

Name the various ways in which a workpart can be held in a lathe

Is the incentive structure in the single-move prisoners’ dilemma game in the interests of society?

Compare and contrast the general rule for determining the amount of the charitable contribution if the corporation contributes capital gain property versus ordinary income property.

Compare and contrast the similarities and differences between like-kind exchanges and involuntary conversions for tax purposes.

1. Give two more examples in each category. 2. Would you expect builders and restaurateurs to have the same degree of control over price?

: Send copies of the reports anonymously to the operations manager, who is Taandil’s boss