Required: 1. Intangible assets will mean what adjustment in the EVA calculation? 2. The unusual loss will mean what adjustment in the EVA calculation? 3. Calculate the EVA.
Q: Outrigger Leisure Products sells 2,000 kayaks per year at a price of $450 per unit. Outrigger sells…
A: A variable cost is one that varies according to the amount of production or the quantity of services…
Q: general journal adjusting entry on December 31, 2021
A: Depreciation refers to the reduction in the value of the fixed asset recorded in the books in a…
Q: Prepare the journal entries to record Bass' tax provision for each of the first two quarters of…
A: Provisions 1st Quarter - 675000*42% = 283500 2nd Quarter - 710000*42% = 298200 Reversal =…
Q: Provide the missing data in the following table for a distributor of martial arts products: (Round…
A: Formula: Margin = Net operating income / Sales Turnover = Sales / Average operating assets ROI = Net…
Q: Dearth Company issued 100,000 ordinary shares. Of these, 5,000 shares were held as treasury on…
A: Ordinary shares are the shares issued to ordinary shareholders by the company. Whereas, treasury…
Q: An example of a CSR initiative focused on the social performance aspect of the triple bottom line…
A: CSR refers to corporate social responsibility. It is a self rules and legislation implemented by the…
Q: Waterway Industries had 200000 shares of common stock, 19300 shares of convertible preferred stock,…
A: Diluted Earnings Per Share: The diluted earnings per share (diluted EPS) of a corporation is…
Q: Rodriguez Company pays $352,755 for real estate with land, land improvements, and a building. Land…
A: A Journal entry is a primary entry that records the financial transactions initially. The…
Q: This is your first month working as a bookkeeper and you notice a discrepancy when trying to…
A: The process of documenting vital company transactions in a recording system is known as bookkeeping.…
Q: Explain why depreciation and interest should not be included as costs in a discounted cash flow…
A: The company makes several investments and an evaluation of investment is necessary. Therefore, the…
Q: ABC Company has two departments and uses a job-order costing system. ABC applies overhead in…
A: Cost of goods manufactured: Cost of goods manufactured means total manufacturing costs; including…
Q: What is the maximum term of the measurement period?
A: Given If the initial accounting for a business combination is incomplete by the end of the reporting…
Q: QUESTION 9 If you invest $5100 per year in a stock that grows at rate of 6% per year, how much will…
A: Time value of money means the worth of money today is more than the value of money in the future.
Q: Saved Income statements and balance sheets data for Virtual Gaming Systems are provided below.…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: .The statement of financial affairs is prepared Select one: a.in order to bring clarity to the…
A: The purpose of statements of affairs is to show the current financial position of the company. It…
Q: A piece of equipment in the 5-year MACRS asset class is being considered that ma- The equipment…
A: Break even point unit is minimum number of pinballs necessary to recover the fixed cost of each…
Q: Assume that Barb City acquires $2,000 of inventory on May 1, 2022, having held no inventory…
A: Inventory is a type of asset that is sold in company operations. Inventory may not be available for…
Q: If a firm changes how they account for long-term contracts, what will be the proper accounting…
A: When accounting for a long-term construction contract for which revenue is recognized over time…
Q: Make-or-Buy Decision Somerset Computer Company has been purchasing carrying cases for its portable…
A: Differential analysis is done to select between one or more alternatives, the benefit of one or more…
Q: Mongelli Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The…
A: Solution: Budgeted variable overhead cost at 90 guests = $234 + $315= $549 Budgeted variable…
Q: Rory Company has an old machine with a book value ot $77000 and a remaning tve year usee. Rory is…
A: In keep or Replace analysis, Revenues and costs of Keeping the old Asset should be compared with…
Q: Based on the rules issued by the FASB, mandatorily redeemable preferred stock has to be classified…
A: Mandatorily Redeemable preferred stock is the preferred stock which will be redeemed in future.
Q: On a statement of financial affairs, a company's liabilities should be valued at Select one: a.the…
A: Solution: Liabilities are present obligation of company as a result of past event that requires…
Q: Explain theimportance oftransfer pricing
A: Transfer Pricing- Transfer pricing refers to the rate at which one unit of an organization sells…
Q: Item 7 Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The…
A: Inventory means the amount of stock which is held for used in production or for resale purpose.…
Q: When raw materials are requisitioned and placed into production, the Raw Materials Inventory account…
A: Soluiton: Cost placed into production such as direct materials, direct labor and applied are debited…
Q: Everdeen Company sells computers for P20,000 eachand also gives each customer a 3-year warranty that…
A: Warranty is a form of assurance being given by the seller to the buyer that in case product will…
Q: ividend distributions: (200,000) Required: a. Compute the combined tax cost for Xenon and Ms. Xie.…
A: The Combined Tax Rate is the highest combined federal, state, and local income tax rates applicable…
Q: Average age of inventory of PETRON STATEMENT OF FINANCIAL POSITION AND INCOME STATEMENT OF 3…
A: Average age of inventory means the number of days the company will take to sell its inventory. The…
Q: 8c. A large profitable corporation is considering a capital investment of $50,000. The equipment has…
A: The fee charged by the government from the individuals and various business entities on the income…
Q: Presented are the income statements of Clyton and Garner heavy equipment manufacturing companies for…
A: Common size financial statement means where every item of income statement is shown in percentage by…
Q: Entries for Issuing No-Par Stock On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash…
A: Preferred stock means the amount raised against which dividend is given to stock holder but after…
Q: uired: 1. Compute the profit-linked productivity measure. By how much did profits increase due to…
A: Productivity measures are undertaken to improve the overall profitability in an entity, these…
Q: A 50-y
A: The taxable total income of the individual taxpayer includes the income earned by the respective…
Q: Wages paid to factory staff is an example of indirect cost
A: Indirect Labor: The term "labor" refers to the overall amount of personnel and skill necessary to…
Q: Depreciation is based on the fair value of assets. An impairment loss occurs if the carrying value…
A: GIVEN Depreciation is based on the fair value of assets. An impairment loss occurs if…
Q: According to Ian Redpath and Bob Lickwar, what is the purpose of the IRS 1444 letter/notice?
A: Introduction Economic impact payments are Coronavirus aid, relief, it provides payments up to $1,200…
Q: QUESTION 11 Snowberry Corporation had a net increase in Retained Eamings of $182.000 for the year.…
A: The net income earned during the year will be aggregate of increase in the balance of retained…
Q: In the ABC partnership (to which D seeks admittance), the capital balances of A, B, and C, who share…
A: Estimated amount to be invested by D for a 20% interest = Total capital of the partnership after…
Q: rdinary shares with P50 par value for a combined cash amount of P11,000,000. The market value of the…
A: Shareholders also invest money in the company and in return they become the owners in proportion to…
Q: On July 8, Action Co. issued an $80,000, 6%, 90-day note payable to Scanlon Co. Assuming a 360-day…
A: The note is the liability on which a specific percentage of interest has to be paid over the…
Q: In 2022, ABC Company sold inventory costing P150,000 to its 80%-owned subsidiary for P210,000. A…
A: Consolidated Financial statements present assets, liabilities, equities , income , expenses etc of…
Q: Inventory taken by the owner of the entity for personal use, will affect which of the following…
A: Periodic inventory system is the system of accounting in which inventory is calculated at the end of…
Q: Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: c. A large profitable corporation is considering a capital investment of $50,000. The equipment has…
A: Tax refers to a charge which is payable by a business entity or an individual on the income earned…
Q: 1. Whitman is the:
A: The taxable total income of the individual taxpayer includes the income earned by the respective…
Q: The following transactions are for Sheridan Company. On December 3, Sheridan Company sold $613,400…
A: Net cash received = Net accounts receivables - Discount allowed where, Discount allowed = Net…
Q: In the ABC partnership (to which D seeks admittance), the capital balances of A, B, and C, who share…
A: Partnership is an agreement between two or more partners where partners are agreed to work together…
Q: Presented below is selected information related to Blue Co. for the month of January 2022. Ending…
A: Ending inventory are overstated by $800 ($23,710 - $22,910)
Q: Question 16 Increasing the sales price will increase the contribution margin per unit. True False
A: Variable costing: It implies to a method of accounting where only variable costs are assigned to the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Solomon Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division. BOWMAN DIVISION Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 107,280 Cost of goods sold 58,875 Gross margin 48,405 Operating expenses Selling expenses (2,680 ) Depreciation expense (4,135 ) Operating income 41,590 Nonoperating item Loss on sale of land (4,000 ) Net income $ 37,590 BOWMAN DIVISION Balance Sheet As of December 31, Year 2 Assets Cash $ 12,532 Accounts receivable 40,316 Merchandise inventory 36,900 Equipment less accumulated depreciation 90,288 Nonoperating assets 9,600 Total assets $ 189,636 Liabilities Accounts payable $ 9,447 Notes payable 67,000 Stockholders’ equity Common stock 70,000 Retained earnings 43,189 Total liabilities and stockholder's…Global Imex has two divisions; one located at Accra and the other in Takoradi.The following is an extract from the annual report for the 2010 financial year ACCRA TAKORADI Profit Before Depreciation 450,000 620,000 Depreciation 120,000 130,000 Non Current Assets 1,200,000 1,300,000 Current Assets 750,000 1,000,000 Current Liabilities 350,000 400,000 Cost of Capital is 20% Required (i) Using Return on Investment (ROI) and Residual Income, comment on the performance of the divisions.(ii) The Takoradi branch intends to sell one of the non-current assets with book value of GH¢120,000. This asset generates a profit of GH¢60,000. Accra also wants to acquire another asset costing GH¢90,000 that will generate a profit of GH¢40,000. To what extent will the decisions affect the performance of the divisions?During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. B. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?
- The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year. A. Determine the operating income (loss) (dollars) for each year. B. Determine the operating income (percentage) for each year. C. The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the return on investment. Was the decision to invest additional assets in the company successful? Explain. D. Assuming an 8% cost of capital, calculate the residual income for each year. Explain how this compares to your findings in part C.Lousiville Inc. reported the following financial data for one of its divisions for the year; average invested assets of $490,000; sales of $990,000; and income of $113,000. The investment turnover is: Multiple Choice 2.02. 21.30. 433.60. 49.50. 11.40.Davis Corporation reported the following financial data for one of its divisions for the year; average assets of $540,000; sales of $1,069,200; and income of $241,100. The investment turnover is: Multiple Choice 22.3. 50.5. 1.98. 447.6. 11.3.
- The following are financial data taken from the annual report of Foundotos Company: Year 2 $134,448 51,981 37,154 57,504 Net sales Gross property, plant and equipment Accumulated depreciation Intangible assets (net) A. Calculate the following ratios for Year 1 and Year 2: 1. Fixed asset turnover 2. Accumulated depreciation divided-by-gross fixed assets B. What do the trends in these ratios reveal about Foundotos? Year 1 $130,060 47,744 34,180 36,276Easy Company provided the following statement of financial position at year-end and income statement for the current year: Current assets 130,000 Property, plant and equipment 500,000 Goodwill 100,000 Investment in associate 70,000 Total assets 80,000 Current liabilities 90,000 Noncurrent liabilities 60,000 Share capital 400,000 Retained earnings 250,000 Total liabilities and equity 800,000 Revenue 1,800,000 Cost of goods sold -1,200,000 Gross profit 600,000 Other income 60,000 Distribution cost -200,000 Administrative expenses -100,000 Other expenses -50,000 Finance cost -60,000 Share in profit of associate 10,000 Income before tax 260,000 Income tax expense -90,000 Net income 170,000 * The entity is organized for management purposes into three major operating segments, namely furniture, stationery and computer products. There are other smaller operating segments. External sales Furniture 800,000stationary 500,000computer products 400,000other segment 100,000 intersegment…Easy Company provided the following statement of financial position at year-end and income statement for the current year: Current assets 130,000 Property, plant and equipment 500,000 Goodwill 100,000 Investment in associate 70,000 Total assets 80,000 Current liabilities 90,000 Noncurrent liabilities 60,000 Share capital 400,000 Retained earnings 250,000 Total liabilities and equity 800,000 Revenue 1,800,000 Cost of goods sold -1,200,000 Gross profit 600,000 Other income 60,000 Distribution cost -200,000 Administrative expenses -100,000 Other expenses -50,000 Finance cost -60,000 Share in profit of associate 10,000 Income before tax 260,000 Income tax expense -90,000 Net income 170,000 * The entity is organized for management purposes into three major operating segments, namely furniture, stationery and computer products. There are other smaller operating segments. External sales Furniture 800,000stationary 500,000computer products 400,000other segment 100,000 intersegment…
- Determining Missing Items from Computations Data for the North, South, East and West divisions of Free Bird Company are as follows: Sales Income from Operations Invested Assets Return on Investment Profit Margin Investment Turnover North $860,000 (a) (b) 17.5% 7.0% (c) South (d) $51,300 (e) (f) 4.5% 3.8 East $1,020,000 (g) $680,000 15.0% (h) (i) West $1,120,000 $89,600 $560,000 (j) (k) (l) a. Determine the missing items, identifying each by the letters (a) through (l). If required, round percents and investment turnover to one decimal place. a. $ b. $ c. d. $ e. $ f. % g. $ h. % i. j. % k. % l. b. Determine the residual income for each division, assuming that the minimum acceptable rate of return established by management is 12%. Division Residual Income North Division $ South Division $ East Division $ West Division $…Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $950,000 $228,000 (a) 13% (b) (c) $550,000 (d) (e) (f) $60,500 $27,500 $350,000 (g) 14% (h) $38,500 (i) $260,000 $52,000 (j) 12% (k) (l) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number. a. fill in the blank 1% b. $fill in the blank 2 c. $fill in the blank 3 d. $fill in the blank 4 e. fill in the blank 5% f. fill in the blank 6% g. $fill in the blank 7 h. fill in the blank 8% i. $fill in the blank 9 j. fill in the blank 10% k. $fill in the…Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $925,000 $185,000 (a) 15% (b) (c) $775,000 (d) (e) (f) $93,000 $23,250 $450,000 (g) 18% (h) $58,500 (i) $610,000 $97,600 (j) 12% (k) (l) Determine the missing values, identifying each item by the appropriate letter. a. fill in the blank 1% b. $fill in the blank 2 c. $fill in the blank 3 d. $fill in the blank 4 e. fill in the blank 5% f. fill in the blank 6% g. $fill in the blank 7 h. fill in the blank 8% i. $fill in the blank 9 j. fill in the blank 10% k. $fill in the blank 11 l. $fill in the blank 12
