Question: Here are incomplete financial statements for

> Joshua Hill, Bates & Hill Fabricators’ production manager, has just completed the company’s production budget for the first quarter (see Exercise 5-11). Each brick requires 15 minutes to produce, and Joshua expects to pay workers $20 per direct labor hou

> Rider Auto has developed the following production plan for its new auto part. Each unit passes through two departments before completion. The company has developed the following direct labor standards: Required: Prepare the direct labor budget for the th

> Marcy Jones, Bates & Hill Fabricators’ purchasing manager, has just received the company’s production budget for the first quarter (see Exercise 5-11). Each brick requires 5 pounds of clay, and Marcy expects to pay $0.40 per pound of clay in the coming y

> Mackenzie Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted sales, Mackenzie has developed the following budgeted production for the coming year. Each gallon of window cleaner requires 100 oun

> Rider Auto has developed the following production plan for its new auto part. Each unit contains four pounds of raw material. The desired raw materials ending inventory is 40% of the next month’s production needs, plus an additional 100

> After working for three different companies in ten years, Martin Long decided that he just wasn’t cut out to be someone else’s employee. For the next four years, he saved 25% of his salary and then opened his own graphic design firm. He intends to target

> High Flyers manufactures competition stunt kites. In November, Jerry Box prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month’s budgeted sales. Follo

> Bates & Hill Fabricators’ marketing department has identified the following monthly expenses that will be needed to support the company’s sales and administrative functions (see Exercise 5-8). In addition to these monthly expenses, the company will pay a

> Mark Newton has just opened a gourmet coffee bar, the first of its kind in Fountain, North Carolina. You are Mark’s accountant. On a recent visit to the store, you asked how the budget was coming along. Mark replied that since there was no history of gou

> Miller Manufacturing makes several different products for the mountain biking enthusiast. In an extremely competitive market, Miller has assumed a strong position by stressing cost control. Several years ago, the company implemented a standard cost syste

> Joseph A. Knab distributes men’s suits in the Southwest. The following information was gathered to prepare the budget for the third quarter. Suits are budgeted to sell for an average price of $225. Unit sales are expected to be as follo

> (Data set from “Café Data,” Concetta A. DePaolo and David F. Robinson, Journal of Statistics Education Volume 19, Number 1 (2011) used by permission of the authors.) The Peppy Paladin Café is an experiential learning lab at a state university in the Mid

> Refer to Problem 4-28. Reference from Problem 4-28: ErgoFurn, Inc. manufactures ergonomically designed computer furniture. ErgoFurn uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: On Nove

> Refer to Problem 4-26. Reference from Problem 4-26: Paladin Parabolics Company produces high-quality microscopes for education and health care uses. The company uses a job order costing system. Because the microscopes’ optics require s

> ErgoFurn, Inc. manufactures ergonomically designed computer furniture. ErgoFurn uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: On November 30, ErgoFurn’s Raw Materials I

> E. Cain, Ltd. produces decorative lamps in several styles and finishes. The company uses a job order costing system to accumulate product costs. Because much of the production process is automated, E. Cain, Ltd. has selected machine hours as its overhead

> Macon Vitamins sells a variety of vitamins and herbal supplements to small health food stores. Macon purchases the vitamins and supplements from leading manufacturers. Identify each of the following costs incurred by Macon Vitamins in terms of its cost b

> Harker Company manufactures automobile components for the worldwide market. The company has three large production facilities in Virginia, New Jersey, and California, which have been operating for many years. Brett Harker, vice president of production, b

> All businesses are involved in three types of activities—financing, investing, and operating. Listed below are the names and descriptions of companies in several different industries. Abitibi Consolidated Inc.—manufacturer and marketer of newsprint Cal S

> Classify each item as an asset, liability, common stock, revenue, or expense. (a) Issuance of ownership shares. (b) Land purchased. (c) Amounts owed to suppliers. (d) Bonds payable. (e) Amount earned from selling a product. (f) Cost of advertising.

> Columbia Sportswear Company’s fi nancial statements are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C. Instructions (a) Based on the information in these financial statements, determine the following for each

> The accounting equation is Assets = Liabilities + Stock- holders’ Equity. Appendix A, at the end of this textbook, reproduces Apple’s financial statements. Replacing words in the equation with dollar amounts, what is Apple’s accounting equation at Septem

> What types of information are presented in the notes to the financial statements?

> Why is it important for financial statements to receive an unqualified auditor’s opinion?

> What is the purpose of the management discussion and analysis section (MD&A)?

> The annual report provides financial information in a variety of formats, including the following. Management discussion and analysis (MD&A) Financial statements Notes to the financial statements Auditor’s opinion Instructions For each of the following,

> How are each of the following financial statements interrelated? (a) Retained earnings statement and income statement. (b) Retained earnings statement and balance sheet. (c) Balance sheet and statement of cash flows.

> The summaries of data from the balance sheet, income statement, and retained earnings statement for two corporations, Walco Corporation and Gunther Enterprises, are presented as follows for 2017. Instructions Determine the missing amounts. Assume all ch

> Which of these items are liabilities of White Glove Cleaning Service? (a) Cash. (b) Accounts payable. (c) Dividends. (d) Accounts receivable. (e) Supplies. (f) Equipment. (g) Salaries and wages payable. (h) Service revenue. (i) Rent expense.

> Suppose the following items were taken from the balance sheet of Nike, Inc. (All dollars are in millions.) Instructions Perform each of the following. (a) Classify each of these items as an asset, liability, or stockholders’ equity, an

> (a) Define the terms assets, liabilities, and stockholders’ equity. (b) What items affect stockholders’ equity?

> Match each of the following forms of business organization with a set of characteristics: sole proprietorship (SP), partnership (P), corporation (C). (a) _____ Shared control, tax advantages, increased skills and resources. (b) _____ Simple to set up and

> Wayne Holtz is the bookkeeper for Beeson Company. Wayne has been trying to get the balance sheet of Beeson Company to balance. It fi nally balanced, but now he’s not sure it is correct. Instructions Prepare a correct balance sheet.

> What is the basic accounting equation?

> Suppose the following data are derived from the 2017 financial statements of Southwest Airlines. (All dollars are in millions.) Southwest has a December 31 year-end. Cash balance, January 1, 2017…………………………….$1,390 Cash paid for repayment of debt………………………

> What is retained earnings? What items increase the balance in retained earnings? What items decrease the balance in retained earnings?

> Although Clif Bar & Company is not a public company, it does share its financial information with its employees as part of its open-book management approach. Further, although it does not publicly share its fi nancial information, it does provide a diffe

> What are the three main categories of the statement of cash flows? Why do you think these categories were chosen?

> This information is for Williams Corporation for the year ended December 31, 2017. Cash received from lenders……………………..$20,000 Cash received from customers…………………..50,000 Cash paid for new equipment……………………28,000 Cash dividends paid……………………..…………..8,000

> Which is not a required part of an annual report of a publicly traded company? (a) Statement of cash flows. (b) Notes to the financial statements. (c) Management discussion and analysis. (d) All of these are required.

> What is the primary purpose of the statement of cash flows?

> Kellogg Company is the world’s leading producer of ready-to-eat cereal and a leading producer of grain-based convenience foods such as frozen waffl es and cereal bars. Suppose the following items were taken from its 2017 income statemen

> What are the three basic forms of business organizations?

> Indicate whether each of these items is an asset (A), a liability (L), or part of stock- holders’ equity (SE). (a) Accounts receivable. (b) Salaries and wages payable. (c) Equipment. (d) Supplies. (e) Common stock. (f) Notes payable.

> A company’s net income appears directly on the income statement and the retained earnings statement, and it is included indirectly in the company’s balance sheet.” Do you agree? Explain.

> Otay Lakes Park is a private camping ground near the Mount Miguel Recreation Area. It has compiled the following financial information as of December 31, 2017. Service revenue (from camping fees)……………………..$132,000 Dividends……………………..……………………..………………$9,00

> Some people are tempted to make their finances look worse to get financial aid. Companies sometimes also manage their financial numbers in order to accomplish certain goals. Earnings management is the planned timing of revenues, expenses, gains, and loss

> At the beginning of the year, Morales Company had total assets of $800,000 and total liabilities of $500,000. (Treat each item independently.) (a) If total assets increased $150,000 during the year and total liabilities decreased $80,000, what is the amo

> Why would a bank want to monitor the dividend payment practices of the corporations to which it lends money?

> Rules governing the investment practices of individual certified public accountants prohibit them from investing in the stock of a company that their firm audits. The Securities and Exchange Commission (SEC) became concerned that some accountants were vi

> Marci Ling is the bookkeeper for Samco Company, Inc. Marci has been trying to get the company’s balance sheet to balance. She finally got it to balance, but she still isn’t sure that it is correct. Instructions Explai

> Listed here are some items found in the financial statements of Finzelberg. Indicate in which financial statement(s) each item would appear. (a) Service revenue. (b) Equipment. (c) Advertising expense. (d) Accounts receivable. (e) Common stock. (f) Inter

> Presented below are five independent situations. (a) Three physics professors at MIT have formed a business to improve the speed of information transfer over the Internet for stock exchange transactions. Each has contributed an equal amount of cash and k

> The following items and amounts were taken from Lonyear Inc.’s 2017 income statement and balance sheet. Instructions (a) In each, case, identify on the blank line whether the item is an asset (A), liability (L), stockholdersâ&#12

> Indicate which statement you would examine to find each of the following items: Income statement (IS), balance sheet (BS), retained earnings statement (RES), or statement of cash flows (SCF). (a) Revenue during the period. (b) Supplies on hand at the end

> What are the three main types of business activity? Give examples of each activity.

> Consider each of the following independent situations. (a) The retained earnings statement of Lee Corporation shows dividends of $68,000, while net income for the year was $75,000. (b) The statement of cash flows for Steele Corporation shows that cash pr

> Sylvia Ayala recently accepted a job in the production department at Apple. Before she starts work, she decides to review the company’s annual report to better understand its operations. The content and organization of corporate annual reports have becom

> Eskimo Pie Corporation markets a broad range of frozen treats, including its famous Eskimo Pie ice cream bars. The following items were taken from a recent income statement and balance sheet. In each case, identify whether the item would appear on the ba

> Who are the external users of accounting data? Give examples.

> Presented here is information for Zheng Inc. for 2017. Retained earnings, January 1 ……………………..$130,000 Service revenue……………………..……………………400,000 Total expenses……………………..……………………..175,000 Dividends……………………..…………………………….65,000 Instructions Prepare the 2017

> The June 22, 2011, issue of the Wall Street Journal Online includes an article by Michael Rapoport entitled “Auditors Urged to Tell More.” It provides an interesting discussion of the possible expanding role of CPAs. Instructions Read the article and ans

> Purpose: Identify summary information about companies. This information includes basic descriptions of the company’s location, activities, industry, financial health, and financial performance. Steps 1. Type in a company name, or use the index to find co

> Here is a list of words or phrases discussed in this chapter: 1. Corporation 2. Creditor 3. Accounts receivable 4. Partnership 5. Stockholder 6. Common stock 7. Accounts payable 8. Auditor’s opinion Instructions Match each word or phrase with the best d

> Who are the internal users of accounting data? How does accounting provide relevant data to the internal users?

> Micado Corporation was formed on January 1, 2017. At December 31, 2017, Miko Liu, the president and sole stockholder, decided to prepare a balance sheet, which appeared as follows. Miko willingly admits that she is not an accountant by training. She is

> Suppose the following information was taken from the 2017 financial statements of pharmaceutical giant Merck and Co. (All dollar amounts are in millions.) Retained earnings, January 1, 2017……………………..$43,698.8 Cost of goods sold……………………..………………………..9,018.

> Presented below are a number of transactions. Determine whether each transaction affects common stock (C), dividends (D), revenues (R), expenses (E), or does not affect stockholders’ equity (NSE). Provide titles for the revenues and expenses. (a) Costs i

> “Accounting is ingrained in our society and is vital to our economic system.” Do you agree? Explain.

> Presented below is selected financial information for Rojo Corporation for December 31, 2017. Inventory $ 25,000 Cash paid to purchase equipment ………………$ 12,000 Cash paid to suppliers …………………………………104,000 Equipment 40,000 Buildings ………………………200,000 Servic

> This information relates to Benser Co. for the year 2017. Retained earnings, January 1, 2017……..$67,000 Advertising expense…………………………….1,800 Dividends……………………..…………………….6,000 Rent expense……………………..………………..10,400 Service revenue……………………..…………….58,000 Util

> Xerox was not having a particularly pleasant year. The company’s stock price had already fallen in the previous year from $60 per share to $30. Just when it seemed things couldn’t get worse, Xerox’s s

> Indicate whether each of the following items is most closely associated with the management discussion and analysis (MD&A), the notes to the financial statements, or the auditor’s report. (a) Description of ability to pay near-term obligations. (b) Unqua

> Gray Corporation began operations on January 1, 2017. The following information is available for Gray Corporation on December 31, 2017. Accounts payable…………………$ 5,000 Notes payable………………………$ 7,000 Accounts receivable…………………2,000 Rent expense…………………………1

> Identify each of the following organizational characteristics with the business organizational form or forms with which it is associated. (a) Easier to transfer ownership. (b) Easier to raise funds. (c) More owner control. (d) Tax advantages. (e) No pers

> Indicate in which part of the statement of cash flows each item would appear: Operating activities (O), investing activities (I), or financing activities (F). (a) _____ Cash received from customers. (b) _____ Cash paid to stockholders (dividends). (c) __

> What are the advantages to a business of being formed as a partnership or sole proprietorship? What are the disadvantages?

> On June 1, 2017, Elite Service Co. was started with an initial investment in the company of $22,100 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first m

> The financial statements of Louis Vuitton are presented in Appendix F. Instructions for accessing and using the company’s complete annual report, including the notes to its financial statements, are also provided in Appendix F. Instructions Visit Louis V

> The Bonita Vista Golf & Country Club details the following accounts in its financial statements. Accounts payable _____ Accounts receivable _____ Equipment _____ Sales revenue

> Amazon.com, Inc.’s fi nancial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions (a) Based on the information contained in these financial statements, determine the following fo

> Match each of the following types of evaluation with one of the listed users of accounting information. 1. Trying to determine whether the company complied with tax laws. 2. Trying to determine whether the company can pay its obligations. 3. Trying to de

> What are the advantages to a business of being formed as a corporation? What are the disadvantages?

> Financial decisions often place heavier emphasis on one type of financial statement over the others. Consider each of the following hypothetical situations independently. (a) The North Face is considering extending credit to a new customer. The terms of

> What is the benefit of a single set of high-quality accounting standards?

> The financial statements of Apple Inc. for 2014 are presented in Appendix A. Instructions Refer to Apple’s financial statements and answer the following questions. (a) What were Apple’s total assets at September 27, 2014? At September 28, 2013? (b) How m

> What are the three time estimates used with PERT?

> What are dummy activities? Why are they used in activity on arrow= (AOA) project networks?

> Define earliest start, earliest finish, latest finish, and latest start times.

> In December, General Motors produced 6,600 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor-hour during that month. 300 laborers were employed at the plant that month. a) How many hou

> Describe how expected activity times and variances can be computed in a PERT network.

> What is the use of Gantt charts in project management?

> What are some of the questions that can be answered with PERT and CPM?

> How can we determine the probability that a project will be completed by a certain date? What assumptions are made in this computation?

> What is the difference between the waterfall approach and agile project management?

> Name some of the widely used project management software programs.

> How the variance of the total project is computed in PERT?

> Would a project manager ever consider crashing a noncritical activity in a project network? Explain convincingly.

> Students are sometimes confused by the concept of critical path, and want to believe that it is the shortest path through a network. Convincingly explain why this is not so.

> What would a project manager have to do to crash an activity?