Financial Accounting

Your company has purchased a large new trucktractor for over-the-road use (asset

Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $185000. With additional options costing $13000, the cost bas…

Your company has recently decided to change its method of depreciating long-term

Your company has recently decided to change its method of depreciating long-term assets to be consistent with major competitors. Your company has always used the straight-line met…

Your company has recently implemented a share buy-back program which allows for

Your company has recently implemented a share buy-back program which allows for the repurchase of three million shares over the next two years. Your CEO has indicated that the dec…

Your company in the Midwest has corn and grain warehouses in Kansas City, Omaha

Your company in the Midwest has corn and grain warehouses in Kansas City, Omaha and Des Moine. You ship commodities to your food mills in Chicago, St. Louis and Cincinnati. The ma…

Your company is about to release a new product. They are unsure of what to expec

Your company is about to release a new product. They are unsure of what to expect for Sales or Annual Costs. They believe one of 3 possible Annual Sales figures will occur, at the…

Your company is considering a project that will cost $1 million. The project wil

Your company is considering a project that will cost $1 million. The project will generate after-tax cash flows of $250,000 per year for 7 years. The WACC is 15%, and the firm’s t…

Your company is considering buying back some of its stock. You are assigned the

Your company is considering buying back some of its stock. You are assigned the task of correctly assessing the value of the company so that the company can make a rational decisi…

Your company is considering expanding its warehouse facility in Memphis, Tenness

Your company is considering expanding its warehouse facility in Memphis, Tennessee. The expansion will cost $50,000 and will be depreciated as a 7-year MACRS asset for ten years. …

Your company is considering replacing an old steel cutting machine with a new on

Your company is considering replacing an old steel cutting machine with a new one. Two months ago, you sent the company engineer to a training seminar demonstrating the new machin…

Your company is considering the following investment: Investment required: $600,

Your company is considering the following investment: Investment required: $600,000,000 Annual Gross Operating Revenue: $280,000,000 Annual Operating Costs: $90,000,000 Salvage af…

Your company is considering the purchase of a secondhand scanning microscope at

Your company is considering the purchase of a secondhand scanning microscope at a cost of $10,500 with an estimated salvage value of $500 and a projected useful life of 4 years. D…

Your company is considering the replacement of an old delivery van with a new on

Your company is considering the replacement of an old delivery van with a new one that is more efficient. The old van cost $30,000 when it was purchased 5 years ago. The old van i…

Your company is considering two mutually exclusive projects. X1 and X2; also con

Your company is considering two mutually exclusive projects. X1 and X2; also considered are 2 projects, Y and Z. Independant of the X projects and each other. The project costs an…

Your company is considering two potential new investments: Project B and Project

Your company is considering two potential new investments: Project B and Project C. Each is a four-year project. The forecast cash flows for each project are shown below. The proj…

Your company is out of cash at the end of 2014. You have a credit line from whic

Your company is out of cash at the end of 2014. You have a credit line from which you can borrow throughout the year. You have calculated you capital cash flows will be –984,000 f…

Your company is planning on expanding their current facility to increase the man

Your company is planning on expanding their current facility to increase the manufacturing of their products. The total cost is expected to be $100,000, and the company has decide…

Your company is set to release the next version of a polpular video game. The co

Your company is set to release the next version of a polpular video game. The company expects revenues of $100,000 during the first year, with reductions of $20,000 per year in ye…

Your company is trying to determine whether to spend $500,000 in process improve

Your company is trying to determine whether to spend $500,000 in process improvements.The projected savings increase in time as given in table 1.The alternative is to do nothing a…

Your company issues a 5-year bond with a face value of $10,000 and a stated inte

Your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 7%. The market interest rate is 5%. The issue price of the bond is calculated as: A) t…

Your company makes dice. In order to make dice they buy blocks of wood from vari

Your company makes dice. In order to make dice they buy blocks of wood from various wood companies. Each pair of dice requires 2 blocks of wood. This month the following occurred:…

Your company plans to produce a product for two more years and then to shut down

Your company plans to produce a product for two more years and then to shut down production. You are considering replacing an old machine used in production with a new machine. Th…

Your company prepares financial statements only once a year. In accounting for u

Your company prepares financial statements only once a year. In accounting for uncollectible accounts it uses the allowance method. For the most recent year give general journal e…

Your company prepares financial statements only once a year. In accounting for u

Your company prepares financial statements only once a year. In accounting for uncollectible accounts it uses the allowance method. For the most recent year give general journal e…

Your company prepares financial statements only once a year. In accounting for u

Your company prepares financial statements only once a year.  In accounting for uncollectible accounts it uses the allowance method. For the most recent year give general journal …

Your company produces a basic potato chip. There are three main processes used i

Your company produces a basic potato chip. There are three main processes used in the chips. The first process washes and peels the potatoes. The second process slices and fries t…

Your company purchased an asset with a total cost of $300,000. The asset creates

Your company purchased an asset with a total cost of $300,000. The asset creates small items used to help produce computer elements. The asset has an expected useful production li…

Your company recently assigned you to a the City of Chesterton and provided you

Your company recently assigned you to a the City of Chesterton and provided you with the following information for the year ended June 30, 2008: Expenses: Revenues: 300,000 Requir…

Your company sponsors a 401(k) plan into which you deposit 10 percent of your $6

Your company sponsors a 401(k) plan into which you deposit 10 percent of your $65,000 annual income. Your company matches 50 percent of the first 5 percent of your earnings. You e…

Your company uses a popular expense reporting system that includes an audit of t

Your company uses a popular expense reporting system that includes an audit of the expenses by the vendor of the reporting system. The vendor’s auditors send you a report saying t…

Your company uses special journals and an average cost perpetual inventory syste

Your company uses special journals and an average cost perpetual inventory system. Enter the following transactions into the relevant journal. Each box must be completed - if ther…

Your company wants to do a comparison between the current traditional costing sy

Your company wants to do a comparison between the current traditional costing system and the newly developed ABC system.   200 units were completed during the month. Associated co…

Your company wants to invest 11,500$ . Project cash flows are 4000, 3000, , 2000

Your company wants to invest 11,500$ . Project cash flows are 4000, 3000, , 2000, 3000, 5000 over 5 years .. Portray with a cash flow diagram. Knowing your company borrowed the mo…

Your company wishes to borrow $800,000 for 90 days in order to make a large purc

Your company wishes to borrow $800,000 for 90 days in order to make a large purchase of some equipment. The manufacturer of the equipment is giving you a good deal and you think t…

Your company wishes to borrow $800,000 for 90 days in order to make a large purc

Your company wishes to borrow $800,000 for 90 days in order to make a large purchase of some equipment. The manufacturer of the equipment is giving you a good deal and you think t…

Your company, Acme Computer, is considering a new project whose data are shown b

Your company, Acme Computer, is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the MACRS rates for such property…

Your company, CSUS Inc., is considering a new project whose data are shown below

Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the accelerated rates for such property are 33%…

Your company, Dawgs “R” Us, is evaluating a new project involving the purchase o

Your company, Dawgs “R” Us, is evaluating a new project involving the purchase of a new oven to bake your hotdog buns. If purchased, the new oven will replace your existing oven, …

Your comparison of the gross margin percent for Jones Drugs for the years 2008 t

Your comparison of the gross margin percent for Jones Drugs for the years 2008 through 2011 indicates a significant decline. This is shown by the following information: 2011 2010 …

Your consulting firm was just granted an exclusive contract for Vanda-Laye Corpo

Your consulting firm was just granted an exclusive contract for Vanda-Laye Corporation. You now must decide your pricing policy. The firm will encounter no fixed costs, and all re…

Your consulting services have been requested by the CEO of a large international

Your consulting services have been requested by the CEO of a large international corporation. The CEO is concerned about ethical issues surrounding corporate governance from a glo…

Your consulting services have been requested by the CEO of a large international

Your consulting services have been requested by the CEO of a large international corporation. The CEO is concerned about ethical issues surrounding corporate governance from a glo…

Your cookie company is growing but not as rapidly as you would like. You are exp

Your cookie company is growing but not as rapidly as you would like. You are exploring producing products for businesses. During a recent conversation with the owner of a local ca…

Your cost in a product is $80 per unit. Sales would like to sell the product for

Your cost in a product is $80 per unit. Sales would like to sell the product for $ 100.00 per unit. What is the percent markup based on cost? Your company is considering two alter…

Your department has performed 20,000 procedures during the first six months (Jan

Your department has performed 20,000 procedures during the first six months (January–June) of 20X1. Spending during that period of time was $210,000 for fixed expense items and $1…

Your department is in preliminary planning stages for a project that will cost $

Your department is in preliminary planning stages for a project that will cost $451,000 late next year and is anticipated to return annual benefits of $75,000 for 10 years after t…

Your division is considering two investment projects, each of which requires an

Your division is considering two investment projects, each of which requires an up-front expenditure of $25 million. You estimate that the cost of capital is 10% and that the inve…

Your employer has a Monday–Friday workweek; the 5-day payroll totals $20,000 eac

Your employer has a Monday–Friday workweek; the 5-day payroll totals $20,000 each week. In 20X1, December 31 is a Thursday. Just before closing the books, you realize that no adju…

Your employer has a Monday–Friday workweek; the 5-day payroll totals $35,000 eac

Your employer has a Monday–Friday workweek; the 5-day payroll totals $35,000 each week. In 20X2, December 31 is a Tuesday. One of your assistants made the adjusting entry by debit…

Your employer uses a career average formula to determine 5 Points retirement pay

Your employer uses a career average formula to determine 5 Points retirement payments to its employees. The annual retirement payout is 3 percent of the employees' career average …

Your employer, a large MNC, has asked you to assess its transaction exposure. It

Your employer, a large MNC, has asked you to assess its transaction exposure. Its projected cash flows are as follows for the next year: Currency Total Inflow Total Outflow St (US…