Question: Access the March 31, 2014, filing of

> Both the budget process and budgets themselves can impact management actions, both positively and negatively. For instance, a common practice among not-for-profit organizations and government agencies is for management to spend any amounts remaining in a

> One source of cash savings for a company is improved management of inventory. To illustrate, assume that Apple and Google both have $1 billion per month in sales of one model of smartphone in Canada, and both forecast this level of sales per month for th

> Financial statements often serve as a starting point in formulating budgets. Review Apple’s financial statements in Appendix A to determine its cash paid for acquisitions of property, plant, and equipment in the current year and the budgeted cash needed

> Access and review Samsung’s website (www.samsung.com) to answer the following questions. Required 1. Do you believe that Samsung’s managers use single product CVP analysis or multiproduct break-even analysis? Explain. 2. How does the addition of a new p

> Multiproduct break-even analysis is often viewed differently when actually applied in practice. You are to visit a local fast-food restaurant and count the number of items on the menu. To apply multiproduct break-even analysis to the restaurant, similar

> Fast Yeti Custom Tees, launched by entrepreneurs Reid Lyle, Jordan Roudenis, and Ryan Montgomery, produces apparel products. The company has a diverse product line of T-shirts, hats, and polo shirts. Required 1. Identify at least two fixed costs that wi

> A local movie theater owner explains to you that ticket sales on weekends and evenings are strong, but attendance during the weekdays, Monday through Thursday, is poor. The owner proposes to offer a contract to the local grade school to show educational

> Access and review the entrepreneurial information at Business Owner’s Toolkit [Toolkit.com]. Access and review its New Business Cash Needs Checklist (or similar worksheets related to controls of cash and costs) under the “Start Up” link. (Look under the

> Labor costs of an auto repair mechanic are seldom based on actual hours worked. Instead, the amount paid a mechanic is based on an industry average of time estimated to complete a repair job. The repair shop bills the customer for the industry average am

> Both Apple and Google sell electronic devices like phones and computers, and each of these companies has a different product mix. Required 1. Assume the following data are available for both companies. Compute each company’s break-even point in unit sal

> Apple offers extended service contracts that provide repair coverage for its products. As you complete the following requirements, assume that Apple’s repair services department uses many of the company’s existing resources such as its facilities, repair

> Samsung, Apple, and Google are competitors in the global marketplace. Selected data for Samsung follow. Required 1. Review the discussion of the importance of the cost of goods sold divided by total expenses ratio in BTN 20-2. Compute the cost of goods

> In process costing, the process is analyzed first and then a unit measure is computed in the form of equivalent units for direct materials, conversion (direct labor and overhead), and both types of costs combined. The same analysis applies to both manufa

> This chapter’s opener featured Nick Nicolay and his company Kar’s Nuts. Required 1. Kar’s Nuts uses three processes: roasting, blending, and packaging. What are some benefits of using separate process cost summary reports for each process? 2. Nick tries

> The purpose of this team activity is to ensure that each team member understands process operations and the related accounting entries. Find the activities and flows identified in Exhibit 20.14 with numbers 1 – 10. Pick a member of the

> Many companies acquire software to help them monitor and control their costs and as an aid to their accounting systems. One company that supplies such software is proDacapo (prodacapo.com). There are many other such vendors. Access proDacapo’s website, c

> You hire a new assistant production manager whose prior experience is with a company that produced goods to order. Your company engages in continuous production of homogeneous products that go through various production processes. Your new assistant e-ma

> Many accounting and accounting-related professionals are skilled in financial analysis, but most are not skilled in manufacturing. This is especially the case for process manufacturing environments (for example, a bottling plant or chemical factory). To

> Manufacturers such as Apple and Google usually work to maintain a high-quality and lowcost operation. One ratio routinely computed for this assessment is the cost of goods sold divided by total expenses. A decline in this ratio can mean that the company

> Apple reports in notes to its financial statements that, in addition to its products sold, it includes the following costs (among others) in cost of sales: customer shipping and handling expenses and warranty expenses. Required 1. Why do you believe App

> Apple and Samsung are competitors in the global marketplace. Apple’s and Samsung’s financial statements are in Appendix A. Required 1. Determine the change in Apple’s and Samsung’s inventories for the most recent year reported. Then identify the impact

> Job order costing is frequently used by home builders. Required 1. You (or your team) are to prepare a job cost sheet for a single-family home under construction. List four items of both direct materials and direct labor. Explain how you think overhead

> Refer to the chapter opener regarding Quintin Middleton and his company, Middleton Made Knives. All successful businesses track their costs, and it is especially important for start-up businesses to monitor and control costs. Required 1. Assume that Mid

> Many contractors work on custom jobs that require a job order costing system. Required Access the website AMSI.com; click on “Construction Management Software,” and then on “starbuilder.” Prepare a one-page memorandum for the CEO of a construction compa

> Assume that you are preparing for a second interview with a manufacturing company. The company is impressed with your credentials but has indicated that it has several qualified applicants. You anticipate that in this second interview, you must show what

> An accounting professional requires at least two skill sets. The first is to be technically competent. Knowing how to capture, manage, and report information is a necessary skill. Second, the ability to assess manager and employee actions and biases for

> Manufacturers and merchandisers can apply just-in-time (JIT) to their inventory management. Both Apple and Google want to know the impact of a JIT inventory system for their operating cash flows. Review each company’s statement of cash flows in Appendix

> Apple’s financial statements and notes in Appendix A provide evidence of growth potential in its sales. Required 1. Identify at least two types of costs that will predictably increase as a percent of sales with growth in sales. 2. Explain why you believ

> Access Samsung’s 2013 annual report from its website (www.samsung.com). Like Apple, Samsung offers warranties on its products. Required 1. Access and read footnote 18, “Provisions,” included in Samsung’s 2013 annual report. What amount of warranty expen

> Visit your favorite fast-food restaurant. Observe its business operations. Required 1. Describe all business activities from the time a customer arrives to the time that customer departs. 2. List all costs you can identify with the separate activities d

> Eden Full of SunSaluter must understand manufacturing costs to effectively operate and succeed as a profitable and efficient business. Required 1. What are the three main categories of manufacturing costs Eden must monitor and control? Provide examples

> The following calendar-year information is taken from the December 31, 2015, adjusted trial balance and other records of Dahlia Company. Required 1. Each team member is to be responsible for computing one of the following amounts. You are not to duplic

> Managerial accounting professionals follow a code of ethics. As a member of the Institute of Management Accountants, the managerial accountant must comply with Standards of Ethical Conduct. Required 1. Identify, print, and read the Statement of Ethical

> Write a one-page memorandum to a prospective college student about salary expectations for graduates in business. Compare and contrast the expected salaries for accounting (including different subfields such as public, corporate, tax, audit, and so forth

> Assume that you are the managerial accountant at Infostore, a manufacturer of hard drives, CDs, and DVDs. Its reporting year-end is December 31. The chief financial officer is concerned about having enough cash to pay the expected income tax bill because

> Both Apple and Google have audit committees as part of their boards of directors. Access each company’s website (investor.apple.com or investor.google.com) and read about the purpose of the audit committee. Required 1. From Apple’s website, select Leade

> Managerial accounting is more than recording, maintaining, and reporting financial results. Managerial accountants must provide managers with both financial and nonfinancial information including estimates, projections, and forecasts. An important estima

> Samsung (www.Samsung.com), which is a leading manufacturer of consumer electronic products, along with Apple and Google, are competitors in the global marketplace. Key figures for Samsung follow (in KRW millions). Required 1. Compute common-size percen

> You are to devise an investment strategy to enable you to accumulate $1,000,000 by age 65. Start by making some assumptions about your salary. Next compute the percent of your salary that you will be able to save each year. If you will receive any lump-s

> Assume that David and Tom Gardner of The Motley Fool (Fool.com) have impressed you since you first heard of their rather improbable rise to prominence in financial circles. You learn of a staff opening at The Motley Fool and decide to apply for it. Your

> A team approach to learning financial statement analysis is often useful. Required 1. Each team should write a description of horizontal and vertical analysis that all team members agree with and understand. Illustrate each description with an example.

> Access the February 21, 2014, filing of the December 31, 2013, 10-K report of The Hershey Company (ticker HSY) at www.SEC.gov and complete the following requirements. Required Compute or identify the following profitability ratios of Hershey for its yea

> As Beacon Company controller, you are responsible for informing the board of directors about its financial activities. At the board meeting, you present the following information. After the meeting, the company’s CEO holds a press con

> Key figures for Apple and Google follow. Required 1. Compute common-size percents for each of the companies using the data provided. (Round percents to one decimal.) 2. Which company retains a higher portion of cumulative net income in the company? 3.

> Refer to Apple’s financial statements in Appendix A to answer the following. 1. Using fiscal 2011 as the base year, compute trend percents for fiscal years 2011, 2012, and 2013 for net sales, cost of sales, operating income, other income (expense) net, p

> Visit The Motley Fool’s website (Fool.com). Enter the Fool’s School (at Fool.com/School). Identify and select the link “How to Value Stocks.” (This site might ask you to register with your email address; registration had been free and did grant access to

> Jenna and Matt Wilder are completing their second year operating Mountain High, a downhill C1 A1 ski area and resort. Mountain High reports a net loss of $(10,000) for its second year, which includes an $85,000 extraordinary loss from fire. This past yea

> Review the chapter’s opener involving LSTN and its entrepreneurial owner, Bridget Hilton. Required 1. In a business such as LSTN, monitoring cash flow is always a priority. Even though it is off to a successful start and is growing with a positive net i

> Team members are to coordinate and independently answer one question within each of the following three sections. Team members should then report to the team and confirm or correct teammates’ answers. 1. Answer one of the following questions about the st

> Your friend, Diana Wood, recently completed the second year of her business and just received annual financial statements from her accountant. Wood finds the income statement and balance sheet informative but does not understand the statement of cash flo

> Katie Murphy is preparing for a meeting with her banker. Her business is finishing its fourth year of operations. In the first year, it had negative cash flows from operations. In the second and third years, cash flows from operations were positive. Howe

> Key figures for Apple and Google follow. Required 1. Compute the recent two years’ cash flow on total assets ratios for Apple and Google. 2. What does the cash flow on total assets ratio measure? 3. Which company has the highest cash

> Key comparative information for Samsung (www.Samsung.com), which is a leading manufacturer of electronic consumer products, follows. Required 1. Compute the recent two years’ cash flow on total assets ratio for Samsung. 2. How does Sa

> Refer to Apple’s financial statements in Appendix A to answer the following. 1. Is Apple’s statement of cash flows prepared under the direct method or the indirect method? How do you know? 2. For each fiscal year 2013, 2012, and 2011, is the amount of ca

> Samsung, Apple, and Google are competitors in the global marketplace. Following are selected data from each company. Required 1. Compute Samsung’s return on total assets, and its components of profit margin and total asset turnover, f

> Refer to the opening feature in this chapter about Hannah Davis and her company, BANGS. Assume that the company must acquire the Japanese rights to the website BANGS, which will then be branded with its shoes for sale in Japan. Assume the company acquire

> Access the July 30, 2013, 10-K filing (for year-end June 30, 2013) of Microsoft (MSFT) at www.SEC.gov. Review its note 4, “Investments.” Required 1. How does the “cost-basis” total amount for its investments as of June 30, 2013, compare to the prior yea

> Assume that you are Jolee Company’s accountant. Company owner Mary Jolee has reviewed the 2015 financial statements you prepared and questions the $6,000 loss reported on the sale of its investment in Kemper Co. common stock. Jolee acquired 50,000 shares

> Kasey Hartman is the controller for Wholemart Company, which has numerous long-term investments in debt securities. Wholemart’s investments are mainly in five-year bonds. Hartman is preparing its year-end financial statements. In accounting for long-term

> Key figures for Apple and Google follow. Required 1. Compute return on total assets for Apple and Google for the two most recent years. 2. Separate the return on total assets computed in part 1 into its components for both companies and both years acco

> Refer to Apple’s financial statements in Appendix A to answer the following. 1. Are its financial statements consolidated? How can you tell? 2. What is the amount of comprehensive income for the year ended September 28, 2013? 3. Does it have any foreign

> Samsung (www.Samsung.com), Apple, and Google are competitors in the global marketplace. Selected results from these companies follow. Required 1. Compute Samsung’s debt-to-equity ratio for the current year and the prior year. 2. Use t

> Matthew Clough is the founder of Stone 1 Cloth. Assume that his company currently has $250,000 in equity, and he is considering a $100,000 expansion to meet increased demand. The $100,000 expansion would yield $16,000 in additional annual income before i

> Break into teams and complete the following requirements related to effective interest amortization for a premium bond. 1. Each team member is to independently prepare a blank table with proper headings for amortization of a bond premium. When all have f

> Access the March 27, 2014, filing of the 10-K report of Home Depot for the year ended February 2, 2014, from www.SEC.gov (Ticker: HD). Refer to Home Depot’s balance sheet, including its note 3 (on debt). Required 1. Identify Home Depot’s long-term liabi

> Your business associate mentions that she is considering investing in corporate bonds currently selling at a premium. She says that since the bonds are selling at a premium, they are highly valued and her investment will yield more than the going rate of

> Traverse County needs a new county government building that would cost $10 million. The politicians feel that voters will not approve a municipal bond issue to fund the building since it would increase taxes. They opt to have a state bank issue $10 milli

> Key figures for Apple and Google follow. Required 1. Compute the debt-to-equity ratios for Apple and Google for both the current year and the prior year. 2. Use the ratios you computed in part 1 to determine which company’s financing

> Refer to Apple’s financial statements in Appendix A to answer the following. 1. Identify the items, if any, that make up Apple’s long-term debt as reported on its balance sheet at September 28, 2013. 2. Assume that Apple has $100 million in convertible d

> Assume that Alibaba Group decides to launch a new website to market discount bookkeeping services to consumers. This chain, named Aladin, requires $500,000 of start-up capital. The founder contributes $375,000 of personal assets in return for 15,000 shar

> This activity requires teamwork to reinforce understanding of accounting for treasury stock. 1. Write a brief team statement (a) generalizing what happens to a corporation’s financial position when it engages in a stock “buyback” and (b) identifying reas

> Access the February 24, 2014, filing of the 2013 calendar-year 10-K report of McDonald’s, (ticker MCD) from www.SEC.gov. Required 1. Review McDonald’s balance sheet and identify how many classes of stock it has issued. 2. What are the par values, number

> Harriet Moore is an accountant for New World Pharmaceuticals. Her duties include tracking research and development spending in the new product development division. Over the course of the past six months, Harriet has noticed that a great deal of funds ha

> Key comparative figures for Apple and Google follow. Required 1. Compute the book value per common share for each company using these data. 2. Compute the basic EPS for each company using these data. 3. Compute the dividend yield for each company using

> Refer to Apple’s financial statements in Appendix A to answer the following. 1. How many shares of common stock are issued and outstanding at September 28, 2013, and September 29, 2012? How do these numbers compare with the basic weighted-average common

> Financial information for Samsung (www.Samsung.com) follows (drawn from its financial statements and footnotes): Required 1. Compute book value per share for Samsung. 2. Compute earnings per share (EPS) for Samsung. 3. Compare Samsungâ€&#153

> Access Samsung’s website http://www.samsung.com/us/aboutsamsung/corporateprofile/ history06.html and research the company’s history. Also, review its 1938 to 1970 history at http://en. wikipedia.org/wiki/Samsung. 1. Byung-Chull Lee, the founder, organize

> Daniel Blake and Craig Martineau are founding partners of their company, EcoScraps, LLC. Assume that Daniel and Craig decide to expand their business with the help of general partners. Required 1. What details should Daniel, Craig, and their future part

> This activity requires teamwork to reinforce understanding of accounting for partnerships. Required 1. Assume that Baker, Warner, and Rice form the BWR Partnership by making capital contributions of $200,000, $300,000, and $500,000, respectively. BWR pr

> Access the January 14, 2014, filing of the 2013 10-K of Advanced BioEnergy, LLC (look for the unconsolidated statements, on pages 64–66 of the 10-K filing). This company’s business consists of producing ethanol and co-products, including wet, modified, a

> Assume that you are studying for an upcoming accounting exam with a good friend. Your friend says that she has a solid understanding of general partnerships but is less sure that she understands organizations that combine certain characteristics of partn

> Doctors Mobey, Oak, and Chesterfield have been in a group practice for several years. Mobey and Oak are family practice physicians, and Chesterfield is a general surgeon. Chesterfield receives many referrals for surgery from his family practice partners.

> Over the years Apple and Google have evolved into large corporations. Today it is difficult to imagine them as fledgling start-ups. Research each company’s history online. Required 1. In what year was each company first organized/started as a business?

> Business Solutions’s second quarter 2016 fixed budget performance report for its computer furniture operations follows. The $156,000 budgeted expenses include $108,000 in variable expenses for desks and $18,000 in variable expenses for

> Take a step back in time and imagine Apple in its infancy as a company. The year is 1976, and Steve Wozniak, Steve Jobs, and Ron Wayne are the organizing partners. Required 1. Read the history of Apple from 1976 to 1980 at http://en.wikipedia.org/wiki/A

> What expenses are likely to decrease during retirement?

> What are the three assets you should review on a regular basis during retirement?

> How would you purchase a closed-end fund? An exchange-traded fund?

> In the table below, indicate the typical charges for each type of mutual fund fee and when the fee is assessed. Fee…………………………………………………… Typical Charge Load fund…………………………………………. No load fund……………………………………. Contingent deferred sales load………… Management fe

> What is the net asset value (NAV) for a mutual fund that has assets totaling $730 million, liabilities totaling $10 million, and 24 million shares outstanding?

> In your own words, describe the difference between an investor and a speculator.

> The value of Mike Jackson’s shares in the New Frontiers Technology fund is $11,400. The management fee for this particular fund is 0.80 percent of the total asset value. Calculate the management fee Mike must pay this year.

> Mary Canfield purchased shares in the New Dimensions Global Growth fund. This fund doesn’t charge a front-end load, but it does charge a contingent deferred sales load of 4 percent for any withdrawals during the first five years. If Mary withdraws $7,5

> Jim Johansen noticed that a corporation he is considering investing in is about to pay a quarterly dividend. The record date is Thursday, March 15. In order for Jim to receive this quarterly dividend, what is the last date that he could purchase stock

> During the four quarters for 2015, the Browns received two quarterly dividend payments of $0.18, one quarterly payment of $0.20, and one quarterly payment of $0.22. If they owned 300 shares of stock, what was their total dividend income for 2015?

> This chapter explored a number of different classifications or types of mutual funds. a. Based on your age and current financial situation, which type of mutual fund seems appropriate for your investment needs? Explain your answer. b. As people get cl

> Jamie and Peter Dawson own 220 shares of Duke Energy common stock. Duke Energy's quarterly dividend is $0.28 per share. What is the amount of the dividend check the Dawson couple will receive for this quarter?

> In 2014, Joshua gave $14,000 worth of Microsoft stock to his son. In 2015, the Microsoft shares are worth $23,000. What was the gift tax in 2014?

> You have $100,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly. How many dollars in withdrawals per month would reduce this nest egg to zero in 20 years? How many dollars per month can you withdraw for as long as y

> Gene and Dixie, husband and wife (ages 35 and 32), both work. They have an adjusted gross income of $50,000 in 2014, and they are filing a joint income tax return. Both have an employer-provided retirement plan at work. What is the maximum IRA contribut