Question & Answer

The financial statements of P&G are presented in Appendix 5B. The company’s complete annual report, including the notes to the financial statements, can be accessed at the book’s companion website, www.wiley.com/college/kieso. Instructions Refer to P&G’s financial statements and the accompanying notes to answer the following questions. (a) What type of income statement format does P&G use? Indicate why this format might be used to present income statement information. (b) What are P&G’s primary revenue sources? (c) Compute P&G’s gross profit for each of the years 2009–2011. Explain why gross profit decreased in 2011. (d) Why does P&G make a distinction between operating and nonoperating revenue? (e) What financial ratios did P&G choose to report in its “Financial Summary” section covering the years 2001–2011?

What limitations exist for self-employed taxpayers in deducting home office expenses, and how does the taxpayer determine which expenses are deductible and which are not in situations when the overall amount of the home office deduction is limited?

How are small and medium-sized finance companies able to issue commercial paper? Why do some well-known finance companies directly place their commercial paper? (LO2)

Define the terms ‘sustainability’, ‘sustainability management’ and ‘sustainability management accounting’.

Would the stock market be more efficient if insider dealing were made legal?

How does the ILO/OECD definition differ from the economist’s definition? What is the significance of the phrase ‘available for work at current wages’ in the economist’s definition?

Using examples, discuss the conflicts between using the environment as productive resource and as a dump?

An integrated circuit used in a memory module contains 224 memory circuits. Sixteen of these integrated circuits are packaged onto a board to provide a 256 Mbyte memory module. Use Rent's rule, Eq. (34.11), with C = 6.0 and m = 0.12 to determine the approximate number of input/output pins required in each of the integrated circuits.

Determine the shape factor for each of the extrusion die orifice shapes in Figure P19.32.

Discuss why an incentive package might include individual, divisional and        corporate-level performance targets.

Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales of capital stock.

4 A disk-shaped part is to be cast out of aluminum. The diameter of the disk = 500 mm and its thickness = 20 mm. If the mold constant = 2.0 sec/mm2 in Chvorinov's rule, how long will it take the casting to solidify?

Suppose you asked your favorite AI query tool the following question: “Is total income on Form 1040 the same thing as gross income?”  The AI tool provided the following response:   Is the AI response to the question correct?  Explain.

1.       : Suppose that you are the leader of a team that has just been created to develop a new registration process at your college or university. How can you use an understanding of the stages of team development to improve your team’s effectiveness?

What are the functions of the screen pack and breaker plate at the die end of the extruder barrel?

Distortion (warping) is a serious problem in fusion welding, particularly arc welding. What are some of the techniques that can be taken to reduce the incidence and extent of distortion?

Charles has AGI of $50,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances:

The U.S. government intervened to resolve problems in the mortgage markets during the credit crisis. Summarize the advantages and disadvantages of the government intervention during the credit crisis. Should the government intervene when mortgage market conditions are very weak? (LO5)

George and Weezy received $30,200 of Social Security benefits this year ($12,000 for George; $18,200 for Weezy).  They also received $5,000 of interest from jointly owned City of Ranburne Bonds and dividend income. What amount of the Social Security benefits must George and Weezy include in their gross income under the following independent situations? a.       George and Weezy file married joint and receive $8,000 of dividend income from stocks owned by George. b.       George and Weezy file married separate and receive $8,000 of dividend income from stocks owned by George. c.       George and Weezy file married joint and receive $30,000 of dividend income from stocks owned by George. d.     George and Weezy file married joint and receive $15,000 of dividend income from stocks owned by George

1.      : How accurate is Adam Wainwright’s analysis of the situation at Guitarras Torres? Do you think craftsmanship is incompatible with increasing productivity in this company? Why or why not?

For what reasons might the long-run aggregate supply curve be (a) vertical; (b) upward sloping; (c) downward sloping?

1.    : Surveys reveal shifts in social attitudes among younger people related to issues such as same-sex marriage and citizenship for illegal immigrants. How do you think these changing attitudes might affect the manager’s job over the next few years?

If a partner’s outside basis is less than the partnership’s inside basis in distributed assets, how does the partner determine their basis of the distributed assets in an operating distribution?

The designer has specified that a 3/8-16 UNC low-carbon bolt (3/8 in nominal diameter, 16 threads/in) in a certain application should be stressed to its proof stress of 33,000 lb/in2 (see Table 32.2). Determine the maximum torque that should be used if C = 0.25.

Montana Matt’s Golf Inc. was formed on July 1, 2013, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $770,000 cash for Old Master. At the time, Old Master’s balance sheet reported assets of $650,000 and liabilities of $200,000 (thus owners’ equity was $450,000). The fair value of Old Master’s assets is estimated to be $800,000. Included in the assets is the Old Master trade name with a fair value of $10,000 and a copyright on some instructional books with a fair value of $24,000. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years. Instructions (a) Prepare the intangible assets section of Montana Matt’s Golf Inc. at December 31, 2013. How much amortization expense is included in Montana Matt’s income for the year ended December 31, 2013? Show all supporting computations. (b) Prepare the journal entry to record amortization expense for 2014. Prepare the intangible assets section of Montana Matt’s Golf Inc. at December 31, 2014. (No impairments are required to be recorded in 2014.) (c) At the end of 2015, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television (e.g., the Golf Channel), the Old Master reporting unit has been losing money. Its book value is now $500,000. The fair value of the Old Master reporting unit is $420,000. The implied value of goodwill is $90,000. Magilke has collected the following information related to the company’s intangible assets.