Question & Answer

1.      What do you see as the advantages and disadvantages of the incentive system that Morgan’s is using for sales associates? What impact do you think it is having on the Morgan’s culture? Explain.

On September 30 of last year, Rex received some investment land from Holly as a gift. Holly’s basis was $50,000 and the land was valued at $40,000 at the time of the gift. Holly acquired the land five years ago. What are the amount and character of Rex’s recognized gain (loss) if he sells the land on May 12 this year at the following prices? a. $32,000 b. $70,000 c. $45,000   a. $8,000 short-term capital loss, computed as follows: Description Amount Explanation (1) Amount Realized$32,000 (2) Adjusted Basis 40,000 Rex’s basis is the fair market value of the land at the date of the gift. Gain (Loss) Recognized ($8,000) (1) – (2)

Hull Company’s record of transactions concerning part X for the month of April was as follows. Purchases Sales April 1 (balance on hand) 100 @ $5.00 April 5 300 4 400 @ 5.10 12 200 11 300 @ 5.30 27 800 18 200 @ 5.35 28 150 26 600 @ 5.60 30 200 @ 5.80 Instructions (a) Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry unit costs to the nearest cent. (1) First-in, first-out (FIFO). (2) Last-in, first-out (LIFO). (3) Average-cost. (b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory in (1), (2), and (3) above? (Carry average unit costs to four decimal places.)

Future direction of accounting information Think about the type of work you will perform in your future career.   Required (a)     Give examples of the types of financial and non-financial information you will probably use in your work. (b)     List several methods you could use to produce information that will help predict future operations for your employer or for clients. (c)     What types of continuous learning do you foresee in your career? (d)     Explain why you may need to use creative or innovative ideas in your career.

Explain the general difference between the portfolio composition of private pension funds and public pension funds. (LO6)

For the following taxpayers, determine if they are required to file a tax return in 2024.

A part to be turned in an engine lathe must have a surface finish of 1.6 µm. The part is made of a free-machining aluminum alloy. Cutting speed = 150 m/min, and depth of cut = 4.0 mm. The nose radius on the tool = 0.75 mm. Determine the feed that will achieve the specified surface finish

What will cause people to expect higher rates of inflation? How will expectations of inflation affect the actual rate of inflation?

What are closing entries and why are they necessary?

Explain how the amount of cash payments to suppliers is computed under the direct method.

Dagwood Inc. recently noted that its 4% preferred stock and 4% participating preferred stock, which are both cumulative, have priority as to dividends up to 4% of their par value. Its participating preferred stock participates equally with the common stock in any dividends in excess of 4%. What is meant by the term participating? Cumulative?

There are 19 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. 16.1 The particle size that can pass through a screen is obtained by taking the reciprocal of the mesh count of the screen: (a) true or (b) false? 16.2 For a given weight of metallic powders, the total surface area of the powders is increased by which of the following (two best answers): (a) larger particle size, (b) smaller particle size, (c) higher shape factor, and (d) smaller shape factor? 16.3 As particle size increases, interparticle friction (a) decreases, (b) increases, or (c) remains the same? 16.4 Which of the following powder shapes would tend to have the lowest interparticle friction: (a) acicular, (b) cubic, (c) flakey, (d) spherical, and (e) rounded? 16.5 Which of the following statements is correct in the context of metallic powders (three correct answers): (a) porosity + packing factor = 1.0, (b) packing factor = 1/porosity, (c) packing factor = 1.0 - porosity, (d) packing factor = - porosity, (e) packing factor = bulk density/true density? 16.6 Repressing refers to a pressworking operation used to compress a sintered part in a closed die to achieve closer sizing and better surface finish: (a) true or (b) false? 16.7 Impregnation refers to which of the following (two best answers): (a) filling the pores of the PM part with a molten metal, (b) putting polymers into the pores of a PM part, (c) soaking oil by capillary action into the pores of a PM part, and (d) something that should not happen in a factory? 16.8 In cold isostatic pressing, the mold is most typically made of which one of the following: (a) rubber, (b) sheetmetal, (c) textile, (d) thermosetting polymer, or (e) tool steel? 16.9 Which of the following processes combines pressing and sintering of the metal powders (three best answers): (a) hot isostatic pressing, (b) hot pressing, (c) metal injection molding, (d) pressing and sintering, and (e) spark sintering? 16.10 Which of the following design features would be difficult or impossible to achieve by conventional pressing and sintering (three best answers): (a) outside rounded corners, (b) side holes, (c) threaded holes, (d) vertical stepped holes, and (e) vertical wall thickness of 1/8 inch (3 mm)?

Explain the differences between general and specific knowledge. Give an example of an industry where knowledge is quite general and an example of an industry that requires specific knowledge.

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.

Bloom Corporation had the following 2014 income statement. Sales revenue $200,000 Cost of goods sold 120,000 Gross profi t 80,000 Operating expenses (includes depreciation of $21,000) 50,000 Net income $ 30,000 The following accounts increased during 2014: Accounts Receivable $12,000; Inventory $11,000; Accounts Payable $13,000. Prepare the cash flows from operating activities section of Bloom’s 2014 statement of cash flows using the direct method.

Solve Problem 24.26 only using maximum production rate as the objective rather than minimum piece cost. Use of a spreadsheet calculator is recommended

If two or more firms are charging similar prices, does this imply that collusion is taking place? What evidence would you need to determine the existence of collusion?

What are unemployment taxes?

Dold Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldson’s 2-year, $20,000, zero-interestbearing note. The implied interest rate is 10%. Prepare Dold’s journal entries for the initial transaction, recognition of interest each year, and the collection of $20,000 at maturity.

What abrasive material would one select for grinding a cemented carbide cutting tool?

Loveless Corporation had the following 2014 income statement. Revenues $100,000 Expenses 60,000 $ 40,000 In 2014, Loveless had the following activity in selected accounts. Allowance for Accounts Receivable Doubtful Accounts 1/1/14 20,000 1,200 1/1/14 Revenues 100,000 1,000 Write-offs Write-offs 1,000 1,840 Bad debt expense 90,000 Collections 12/31/14 29,000 2,040 12/31/14 Prepare Loveless’s cash flows from operating activities section of the statement of cash flows using (a) the direct method and (b) the indirect method.

Krauss Company’s income statement for the year ended December 31, 2014, contained the following condensed information. Service revenue $840,000 Operating expenses (excluding depreciation) $624,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 710,000 Income before income taxes 130,000 Income tax expense 40,000 Net income $ 90,000 Krauss’s balance sheet contained the following comparative data at December 31. 2014 2013 Accounts receivable $37,000 $54,000 Accounts payable 41,000 31,000 Income taxes payable 4,000 8,500 (Accounts payable pertains to operating expenses.) Instructions Prepare the operating activities section of the statement of cash flows using the direct method.

* In Problem 42.1, the design specification on the part is: diameter = 6.250 ±0.013 cm. (a) What proportion of parts fall outside the tolerance limits? (b) If the process were adjusted so that its mean diameter = 6.250 cm and the standard deviation remained the same, what proportion of parts would fall outside the tolerance limits?

What is centerless grinding?

Give examples of how the government intervenes to protect the interests of dependants from bad economic decisions taken on their behalf.