Question & Answer

Five jobs are waiting to be scheduled on a machine. For order A, the remaining process time = 5 days, and the due date is day 8. For order B, the remaining process time = 7 days, and the due date is day 16. For order C, the remaining process time = 11 days, and the due date is day 22. For order D, the remaining process time = 9 days, and the due date is day 31. For order E, the remaining process time = 10 days, and the due date is day 26. Determine a production schedulebased on (a) shortest processing time, (b) earliest due date, (c) critical ratio, and (d) least slack time. All times are listed in days.

Rodriguez Corporation includes the following items in its liabilities at December 31, 2014. 1. Notes payable, $25,000,000, due June 30, 2015. 2. Deposits from customers on equipment ordered by them from Rodriguez, $6,250,000. 3. Salaries and wages payable, $3,750,000, due January 14, 2015. Instructions Indicate in what circumstances, if any, each of the three liabilities above would be excluded from current liabilities.

Explain how cash-basis accounting for pension plans differs from accrual-basis accounting for pension plans. Why is cash-basis accounting generally considered unacceptable for pension plan accounting?

Differentiate between an originating temporary difference and a reversing difference.

At January 1, 2014, Hennein Company had plan assets of $280,000 and a projected benefit obligation of the same amount. During 2014, service cost was $27,500, the settlement rate was 10%, actual and expected return on plan assets were $25,000, contributions were $20,000, and benefits paid were $17,500. Prepare a pension worksheet for Hennein Company for 2014.

A hot upset forging operation is performed in an open die. The initial size of the workpart is: Do = 25 mm, and ho = 50 mm. The part is upset to a diameter = 50 mm. The work metal at this elevated temperature yields at 85 MPa (n = 0). Coefficient of friction at the die-work interface = 0.40. Determine (a) final height of the part, and (b) maximum force in the operation.

Explain each of the following terms: authorized ordinary shares, unissued ordinary shares, issued ordinary shares, outstanding ordinary shares, and treasury shares

How does austenite differ from ferrite?

The federal income tax scores very high on the economy criterion because the current IRS budget is relatively low compared to the costs of a typical collection agency.”  Explain why this statement may be considered wrong.

Explain how purchasers of financial futures contracts can offset their position. How is their gain or loss determined? What is the maximum loss to a purchaser of a futures contract? (LO1)

Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2014. On May 1, Tomba issued 30,000 shares. (a) Compute the weighted-average number of shares outstanding if the 30,000 shares were issued for cash. (b) Compute the weighted-average number of shares outstanding if the 30,000 shares were issued in a stock dividend.

What is a private pension plan? How does a contributory pension plan differ from a noncontributory plan?

At December 31, 2014, Redmond Company has outstanding three long-term debt issues. The first is a $2,000,000 note payable which matures June 30, 2017. The second is a$6,000,000 bond issue which matures September 30, 2018. The third is a $12,500,000 sinking fund debenture with annual sinking fund payments of $2,500,000 in each of the years 2016 through 2020. Instructions Prepare the required note disclosure for the long-term debt at December 31, 2014.

Why are specific energy values so much higher in grinding than in traditional machining processes such as milling?

At December 31, 2014, Fell Corporation had a deferred tax liability of $680,000, resulting from future taxable amounts of $2,000,000 and an enacted tax rate of 34%. In May 2015, a new income tax act is signed into law that raises the tax rate to 40% for 2015 and future years. Prepare the journal entry for Fell to adjust the deferred tax liability.

There are 16 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage score on the quiz is based on the total number of correct answers. 17.1 The following equipment is used for crushing and grinding of minerals in the preparation of traditional ceramics raw materials. Which of the pieces listed is used for grinding (two correct answers): (a) ball mill, (b) hammer mill, (c) jaw crusher, (d) roll crusher, and (e) roller mill? 17.2 Which one of the following compounds becomes a plastic and formable material when mixed with suitable proportions of water: (a) aluminum oxide, (b) hydrogen oxide, (c) hydrous aluminum silicate, or (d) silicon dioxide? 17.3 At which one of the following water contents does clay become a suitably plastic material for the traditional ceramics plastic forming processes: (a) 5%, (b) 10%, (c) 20%, or (d) 40%? 17.4 Which of the following processes are not plastic forming methods used in the shaping of traditional ceramics (three correct answers): (a) dry pressing, (b) extrusion, (c) jangling, (d) jiggering, (e) jolleying, (f) slip casting, and (g) spinning? 17.5 The term green piece in ceramics refers to a part that has been shaped but not yet fired: (a) true or (b) false? 17.6 In the final product made of a polycrystalline new ceramic material, strength increases with grain size: (a) true or (b) false? 17.7 Which one of the following processes for the new ceramic materials accomplishes shaping and sintering simultaneously: (a) doctor-blade process, (b) freeze drying, (c) hot pressing, (d) injection molding, or (e) isostatic pressing? 17.8 Which of the following are the purposes of finishing operations used for parts made of the new ceramics (two best answers): (a) apply a surface coating, (b) electroplate the surface, (c) improve surface finish, (d) increase dimensional accuracy, and (e) work harden the surface? 17.9 Which of the following terms describes what a cemented carbide is (one best answer): (a) ceramic, (b) cermet, (c) composite, (d) metal, (e) new ceramic, or (f) traditional ceramic? 17.10 Which of the following geometric features should be avoided if possible in the design of structural components made of new ceramics (three best answers): (a) deep holes, (b) rounded inside corners, (c) rounded outside corners, (d) sharp edges, (e) thick sections, and (f) threads?

McNabb Company spent $190,000 developing a new process, $45,000 in legal fees to obtain a patent, and $91,000 to market the process that was patented, all in the year 2014. How should these costs be accounted for in 2014?

Identifiable assets for the seven industry segments of Foley Corporation are: Penley $500 Cheng $200 Konami 550 Takuhi 150 KSC 250 Molina 475 Red Moon 400 Based only on the identifiable assets test, which industry segments are reportable?

Why is it desirable to use a worksheet when preparing a statement of cash flows? Is a worksheet required to prepare a statement of cash flows?

Included in Outkast Company’s December 31, 2014, trial balance are the following accounts: Prepaid Rent $5,200; Debt Investments (trading) $56,000; Unearned Fees $17,000; Land (held for investment) $39,000; Notes Receivable (long-term) $42,000. Prepare the long-term investments section of the balance sheet.

Presented below are three models for setting GAAP. 1. The purely political approach, where national legislative action decrees GAAP. 2. The private, professional approach, where GAAP is set and enforced by private professional actions only. 3. The public/private mixed approach, where GAAP is basically set by private-sector bodies that behave as though they were public agencies and whose standards to a great extent are enforced through governmental agencies. Instructions (a) Which of these three models best describes standard-setting in the United States? Comment on your answer. (b) Why do companies, financial analysts, labor unions, industry trade associations, and others take such an active interest in standard-setting? (c) Cite an example of a group other than the FASB that attempts to establish accounting standards. Speculate as to why another group might wish to set its own standards.

Data for the Vince Gill Company are presented in E23-3. Instructions Prepare the operating activities section of the statement of cash flows using the direct method.

Do all investment projects generate significant spillovers

In this model, where the country is a price taker and faces a horizontal supply curve (the small country assumption), is any of the cost of the tariff borne by the overseas suppliers?

Aero Inc. had the following balance sheet at December 31, 2013.   During 2014, the following occurred. 1. Aero liquidated its available-for-sale investment portfolio at a loss of $5,000. 2. A tract of land was purchased for $38,000. 3. An additional $30,000 in common stock was issued at par. 4. Dividends totaling $10,000 were declared and paid to stockholders. 5. Net income for 2014 was $35,000, including $12,000 in depreciation expense. 6. Land was purchased through the issuance of $30,000 in additional bonds. 7. At December 31, 2014, Cash was $70,200, Accounts Receivable was $42,000, and Accounts Payable was $40,000. Instructions (a) Prepare a statement of cash flows for the year 2014 for Aero. (b) Prepare the unclassified balance sheet as it would appear at December 31, 2014. (c) Compute Aero’s free cash flow and current cash debt coverage for 2014. (d) Use the analysis of Aero to illustrate how information in the balance sheet and statement of cash flows helps the user of the financial statements.