Question & Answer

Use the information for Lockard Company given in BE11-2. (a) Compute 2014 depreciation expense using the sum-of-the-years’-digits method. (b) Compute 2014 depreciation expense using the sum-of-the-years’-digits method, assuming the machinery was purchased on April 1, 2014

If total convergence were achieved, would harmonisation of policies follow automatically?

What is the difference between favorable and unfavorable book-tax differences?

For the copper-nickel phase diagram in Figure 6.2, find the compositions of the liquid and solid phases for a nominal composition of 70% Ni and 30% Cu at 1371°C (2500°F).

In robot programming, what is the difference between powered leadthrough and manual leadthrough?

Look through the costs and benefits that we identified from the completion of the internal market. Do the same costs and benefits arise from the enlarged EU of 27 members?

Compare the main sources and uses of funds for finance companies, insurance companies, and pension funds. (LO3)

What is a terminal block?

If a firm has a typically shaped average cost curve and sets prices 10 per cent above average cost, what will its supply curve look like?

Identify a major technical problem in tube bending?

What are recourse and nonrecourse liabilities, and how is each generally allocated to partners?

Describe cost depletion and percentage depletion. Why is the percentage depletion method permitted?

What is dip brazing?

Ballard Co. reported $145,000 of net income for 2014. The accountant, in preparing the statement of cash flows, noted the following items occurring during 2014 that might affect cash flows from operating activities. 1. Ballard purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share. 2. Ballard sold 100 shares of IBM common at $200 per share. The acquisition cost of these shares was $145 per share. This investment was shown on Ballard’s December 31, 2013, balance sheet as an available-for-sale security. 3. Ballard revised its estimate for bad debts. Before 2014, Ballard’s bad debt expense was 1% of its net sales. In 2014, this percentage was increased to 2%. Net sales for 2014 were $500,000, and net accounts receivable decreased by $12,000 during 2014. 4. Ballard issued 500 shares of its $10 par common stock for a patent. The market price of the shares on the date of the transaction was $23 per share. 5. Depreciation expense is $39,000. 6. Ballard Co. holds 40% of the Nirvana Company’s common stock as a long-term investment. Nirvana Company reported $27,000 of net income for 2014. 7. Nirvana Company paid a total of $2,000 of cash dividends to all investees in 2014. 8. Ballard declared a 10% stock dividend. One thousand shares of $10 par common stock were distributed. The market price at date of issuance was $20 per share. Instructions Prepare a schedule that shows the net cash flow from operating activities using the indirect method. Assume no items other than those listed above affected the computation of 2014 net cash flow from operating activities.

On October 1, 2014, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National Bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Chung and Seneca.

In 2014, Ghostbusters Corp. spent $420,000 for “goodwill” visits by sales personnel to key customers. The purpose of these visits was to build a solid, friendly relationship for the future and to gain insight into the problems and needs of the companies served. How should this expenditure be reported?

There are 18 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. 1.1 Which of the following industries are classified as secondary industries (three correct answers): (a) beverages (b) financial services, (c) fishing, (d) mining, (e) power utilities, (f) publishing, and (g) transportation? 1.2 Mining is classified in which one of the following industry categories: (a) agricultural industry, (b) manufacturing industry, (c) primary industry, (d) secondary industry, (e) service industry, or (f) tertiary industry? Answer. (c). 1.3 Inventions of the Industrial Revolution include which one of the following: (a) automobile, (b) cannon, (c) printing press, (d) steam engine, or (e) sword? 1.4 Ferrous metals include which of the following (two correct answers): (a) aluminum, (b) cast iron, (c) copper, (d) gold, and (e) steel? 1.5 Which one of the following engineering materials is defined as a compound containing metallic and nonmetallic elements: (a) ceramic, (b) composite, (c) metal, or (d) polymer? 1.6 Which of the following processes start with a material that is in a fluid or semifluid state and solidifies the material in a cavity (two best answers): (a) casting, (b) forging, (c) machining, (d) molding, (e) pressing, and (f) turning? 1.7 Particulate processing of metals and ceramics involves which of the following steps (two best answers): (a) adhesive bonding, (b) deformation, (c) forging, (d) material removal, (e) melting, (f) pressing, and (g) sintering? 1.8 Deformation processes include which of the following (two correct answers): (a) casting, (b) drilling, (c) extrusion, (d) forging, (e) milling, (f) painting, and (g) sintering? 1.9 Which one of the following is a machine used to perform extrusion: (a) forge hammer, (b) milling machine, (c) rolling mill, (d) press, (e) torch? 1.10 High-volume production of assembled products is most closely associated with which one of the following layout types: (a) cellular layout, (b) fixed position layout, (c) process layout, or (d) product layout?   1.11 A production planning and control department accomplishes which of the following functions in its role of providing manufacturing support (two best answers): (a) designs and orders machine tools, (b) develops corporate strategic plans, (c) orders materials and purchased parts, (d) performs quality inspections, and (e) schedules the order of products on a machine?

For each of the following situations, indicate how much the taxpayer is required to include in gross income and explain your answer:

Why are revenue and expense accounts called temporary or nominal accounts?

Comparative balance sheet accounts of Marcus Inc. are presented below. MARCUS INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2014 AND 2013 December 31 Debit Accounts 2014 2013 Cash $ 42,000 $ 33,750 Accounts Receivable 70,500 60,000 Inventory 30,000 24,000 Investments (available-for-sale) 22,250 38,500 Machinery 30,000 18,750 Buildings 67,500 56,250 Land 7,500 7,500 $269,750 $238,750 Credit Accounts Allowance for Doubtful Accounts $ 2,250 $ 1,500 Accumulated Depreciation—Machinery 5,625 2,250 Accumulated Depreciation—Buildings 13,500 9,000 Accounts Payable 35,000 24,750 Accrued Payables 3,375 2,625 Long-Term Notes Payable 21,000 31,000 Common Stock, no-par 150,000 125,000 Retained Earnings 39,000 42,625 $269,750 $238,750 Additional data (ignoring taxes): 1. Net income for the year was $42,500. 2. Cash dividends declared and paid during the year were $21,125. 3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. 4. Investments that cost $25,000 were sold during the year for $28,750. 5. Machinery that cost $3,750, on which $750 of depreciation had accumulated, was sold for $2,200. Marcus’s 2014 income statement follows (ignoring taxes). Sales revenue $540,000 Less: Cost of goods sold 380,000 Gross margin 160,000 Less: Operating expenses (includes $8,625 depreciation and $5,400 bad debts) 120,450 Income from operations 39,550 Other: Gain on sale of investments $3,750 Loss on sale of machinery (800) 2,950 Net income $ 42,500 Instructions (a) Compute net cash flow from operating activities using the direct method. (b) Prepare a statement of cash flows using the indirect method.

: Identify specific benefits and limitations of planning.

What is the difference between dry pressing and semi-dry pressing of traditional ceramic parts?

Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment for $13,200. During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman shares were selling for $34.50 per share. Prepare Fairbanks’ journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment.

Identify some of the common alloying elements other than carbon in low alloy steels.

Derive the equation for average flow stress, Eq. (18.2) in the text