Question & Answer

Identify the inputs to the MRP processor in material requirements planning.

Harriet and Harry Combs (both 37 years old) are married and both want to contribute to a Roth IRA. In the current year, their AGI before any IRA contribution deductions is $50,000. Harriet earned $46,000 and Harry earned $4,000. a. How much can Harriet contribute to her Roth IRA if they file a joint return? b. How much can Harriet contribute if she files a separate return? c. How much can Harry contribute to his Roth IRA if they file separately?

1.15     Cost reduction; value chain analysis Budget Cupboards produces kitchen and bathroom cupboards that incorporate unusual functions, such as specialty drawers for knives and kitchen tools, and kitchen appliance holders that pop up from under the counter top. Competition in this industry has recently increased. Budget’s management wants to cut costs for its basic cupboard models and then cut prices using the structure of the table as shown.   Required (a)          The following table lists potential areas for cost reduction. Two potential cost reductions are provided for the first area listed (design phase). For each of the remaining areas, identify two potential ways that Budget Cupboard’s management could reduce costs. (b)     Budget does not currently use value chain analysis. Describe several advantages of using value chain analysis.

Have unemployment rates generally risen or fallen over the decades or is there no discernible pattern? Does the answer vary by country?

What is off-balance-sheet financing? Why might a company be interested in using off-balance-sheet financing?

Explain how and why the use of ROI for performance evaluation can cause managers to make decisions that could be harmful to an entity in the long run.

List the key statutory requirements that must be met before a corporate formation is tax-deferred under §351.

Indicate how unrealized holding gains and losses should be reported for investments classified as trading and held for-collection.

On January 1, 2013, when its $30 par value common stock was selling for $80 per share, Plato Corp. issued $10,000,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation’s common stock. The debentures were issued for $10,800,000. The present value of the bond payments at the time of issuance was $8,500,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2014, the corporation’s $30 par value common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2015, when the corporation’s $15 par value common stock was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses the straightline method for amortizing any bond discounts or premiums. Instructions (a) Prepare in general journal form the entry to record the original issuance of the convertible debentures. (b) Prepare in general journal form the entry to record the exercise of the conversion option, using the book value method  Show supporting computations in good form.

Explain the dilemma of stock analysts who work for securities firms and assign ratings to large corporations. Why might they prefer not to assign low ratings to weak but large corporations? (LO6)

Determine the helix angle A such that the screw pitch p is equal to the screw diameter D. This is called the \"square\" angle in plastics extrusion - the angle that provides a flight advance equal to one diameter for each rotation of the screw.

Is the value of a money market fund or a bond fund more susceptible to rising interest rates? Explain. (LO3)

Davis Corporation is a medium-sized manufacturer of paperboard containers and boxes. The corporation sponsors a noncontributory, defined benefit pension plan that covers its 250 employees. Sid Cole has recently been hired as president of Davis Corporation. While reviewing last year’s financial statements with Carol Dilbeck, controller, Cole expressed confusion about several of the items in the footnote to the financial statements relating to the pension plan. In part, the footnote reads as follows. Note J. The company has a defined benefit pension plan covering substantially all of its employees. The benefits are based on years of service and the employee’s compensation during the last four years of employment. The company’s funding policy is to contribute annually the maximum amount allowed under the federal tax code. Contributions are intended to provide for benefits expected to be earned in the future as well as those earned to date. The net periodic pension expense on Davis Corporation’s comparative income statement was $72,000 in 2014 and $57,680 in 2013. The following are selected figures from the plan’s funded status and amounts recognized in the Davis Corporation’s Statement of Financial Position at December 31, 2014 ($000 omitted). Actuarial present value of benefi t obligations: Accumulated benefi t obligation (including vested benefi ts of $636) $ (870) Projected benefi t obligation $(1,200) Plan assets at fair value 1,050 Projected benefi t obligation in excess of plan assets $ (150) Given that Davis Corporation’s work force has been stable for the last 6 years, Cole could not understand the increase in the net periodic pension expense. Dilbeck explained that the net periodic pension expense consists of several elements, some of which may increase or decrease the net expense. Instructions (a) The determination of the net periodic pension expense is a function of five elements. List and briefly describe each of the elements. (b) Describe the major difference and the major similarity between the accumulated benefit obligation and the projected benefit obligation. (c) (1) Explain why pension gains and losses are not recognized on the income statement in the period in which they arise. (2) Briefly describe how pension gains and losses are recognized.

Presented below is selected information related to the financial instruments of Dawson Company at December 31, 2014. This is Dawson Company’s first year of operations. Carrying Fair Value Amount (at December 31) Investment in debt securities (intent is to hold to maturity) $ 40,000 $ 41,000 Investment in Chen Company stock 800,000 910,000 Bonds payable 220,000 195,000 Instructions (a) Dawson elects to use the fair value option whenever possible. Assuming that Dawson’s net income is $100,000 in 2014 before reporting any securities gains or losses, determine Dawson’s net income for 2014. (b) Record the journal entry, if any, necessary at December 31, 2014, to record the fair value option for the bonds payable.

Illustrate on a diagram similar to Figure 7.4 what would happen in the long run if price were initially below PL.

Name the four subsystems in a RAM EDM process.

Chaz Corporation has taxable income in 2024 of $1,312,000 for purposes of computing the §179 expense and acquired the following assets during the year:

What is the difference between bulk micromachining and surface micromachining?

Assume the same information as in IFRS14-5, except that the bonds were issued at 84.95 to yield 12%. Prepare the journal entries to record (a) the issuance of the bonds, (b) the payment of interest and related amortization on July 1, 2014, and (c) the accrual of interest and the related amortization on December 31, 2014. (Round to the nearest dollar.)

In terms of the UK economy, are the following net injections, net withdrawals or neither? If there is uncertainty, explain your assumptions. (a)  Firms are forced to take a cut in profits in order to give a pay rise. (b)  Firms spend money on research. (c)  The government increases personal tax allowances. (d)  The general public invests more money in banks and building societies. (e)  UK investors earn higher dividends on overseas investments. (f)   The government purchases US military aircraft. (g)  People draw on their savings to finance holidays abroad. (h)  People draw on their savings to finance holidays in the UK. (i)   The government runs a budget deficit (spends more than it receives in tax revenues) and finances it by borrowing from the general public. (j)   The government runs a budget deficit and finances it through new money created by the central bank.

A 3/8-24 UNF nut and bolt (3/8 in nominal diameter, 24 threads/in) are inserted through a hole in two stacked steel plates. They are tightened so the plates are clamped together with a force of 1000 lb. The torque coefficient is 0.20. (a) What is the torque required to tighten them? (b) What is the resulting stress in the bolt?

1.    Why would small business ownership have great appeal to immigrants, women, and people of color?

Was a ‘hard Brexit’ (reverting to WTO rules and negotiating bilateral trade deals) necessarily an inferior alternative for the UK to remaining in the European single market or, at least, in the customs union?

Prior to 2014, Heberling Inc. excluded manufacturing overhead costs from work in process and finished goods inventory. These costs have been expensed as incurred. In 2014, the company decided to change its accounting methods for manufacturing inventories to full costing by including these costs as product costs. Assuming that these costs are material, how should this change be reflected in the financial statements for 2013 and 2014?

A large steel sand casting shows the characteristic signs of penetration defect: a surface consisting of a mixture of sand and metal. (a) What steps can be taken to correct the defect? (b) What other possible defects might result from taking each of these steps?