cawley company s small motor division manufactures a number of small motors used in 1124780

Cawley Company’s Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Cawley then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis. Fixed cost per unit $4.62 Variable cost per unit 8.37 Selling price per unit 29.13 Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. (Enter your answers to 2 decimal places, e.g. 10.50.) $ Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division. (Enter your answers to 2 decimal places, e.g. 10.50.) $

comparative analysis case the coca cola company and pepsico inc instructions go to t 738935

Comparative Analysis Case

The Coca-Cola Company and PepsiCo, Inc.

Instructions

Go to the book’s companion website and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo, Inc.

(a) Which company had the greater percentage increase in total assets from 2010 to 2011?

(b) Using the Selected Financial Data section of these two companies, determine their 5-year average growth rates related to net sales and income from continuing operations.

(c) Which company had more depreciation and amortization expense for 2011? Provide a rationale as to why there is a difference in these amounts between the two companies.

scenario allen manesfield jenny winters and john jacobsen have been discussing a per 962350

Scenario

Allen Manesfield, Jenny Winters, and John Jacobsen have been discussing a persistent and irritating production problem. The three are employed by Honley Medical, which spe- cializes in the production of medical products and has three divisions: the IV Products Divi- sion, the Critical Care Monitoring Division, and the Specialty Products Division. Allen, Jenny, and John are associated with the IV Products DivisionAc€??Allen as the senior production engi- neer, Jenny as the marketing manager, and John as the divisional controller. The three constitute the divisionAc€?cs capital acquisitions committee, with Allen serving as the chair.

The IV Products Division produces intra- venous needles (IVs) of five different sizes. During one stage of the manufacturing process, the needle is inserted into a plastic hub and bonded using epoxy glue. According to Jenny, the epoxy glue was causing the divi- sion all kinds of problems. In many cases, the epoxy wasnAc€?ct bonding correctly. The rejects were high, and the division was receiving a large number of complaints from its cus- tomers. Corrective action was needed to avoid losing sales.

One possibility was to use induction weld- ing in lieu of epoxy bonding. In induction welding, the needles are inserted into the plastic hub, and an RF generator is used to heat the needles. The RF generator works on the same principle as a microwave oven. As the needles get hot, the plastic melts, and the needles are bonded. Switching to induction welding would require an investment in RF generators and the associated tooling. But induction welding promised to reduce the cost of direct materials, eliminating the need to

buy and use epoxy. Savings of direct labor costs were also predicted because the welding process is much more automated. Adding to these savings were the avoidance of daily clean-up costs and the reduction in rejects.

Several questions in the committee arose concerning this capital acquisition decision: Would the investment increase the value of the firm? Would it earn at least the rate of return required by the company? How long would it take the firm to recover the invest- ment given the predicted savings? After dis- cussion and analysis, the committee concluded that the investment was justified based on the savings associated with the new system. Using the predicted savings, the committee presented headquarters with a formal net present value analysis showing that the welding system was economically superior to the epoxy system and an analysis confirming that the expected return was greater than the divisionAc€?cs cost of capital. Based on these analyses, headquarters approved the purchase of the new system.

Questions to Think About

1. What role, if any, should qualitative factors play in capital budgeting decisions?

2. How do we measure the financial benefits of long-term investments?

3. Why are cash flows important for assessing the financial merits of an investment?

4. What role do taxes and inflation play in assessing cash flows?

5. Should the cash flows of intangible factors be estimated?

prepare the required adjusting journal entry for each situation 782264

Prepare the required adjusting journal entry for each situation as of December 31, 2010.
See the last page for the unadjusted account balances shown in T-accounts.

(a) Suppose Deana’s had received a $1,800 shipment of supplies in September 2010. When counting the supplies on December 31, 2010, Deana’s found only $800 worth of supplies on hand.

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ACC241- Practice Set (4 parts) HANDOUT 4 – 1 ADJUSTING ENTRIES AND ?POSTING TO T-ACCOUNTS Prepare the required adjusting journal entry for each situation as of December 31, 2010. See the last page for the unadjusted account balances shown in T-accounts. (a) Suppose Deana’s had received a $1,800 shipment of supplies in September 2010. When counting the supplies on December 31, 2010, Deana’s found only $800 worth of supplies on hand. Debit and credit the accounts affected.??Dec. 31?????2010??????? Ensure the equation still balances and debits = credits.??Assets?=?Liabilities?+?Stockholders’ Equity????????????? (b) Suppose Deana’s had paid $12,000 for six months’ rent on November 1, 2010. As of December, 31, 2010, two months’ (November & December) prepaid rent has expired. Debit and credit the accounts affected.??Dec. 31?????2010??????? Ensure the equation still balances and debits = credits.??Assets?=?Liabilities?+?Stockholders’ Equity????????????? (c) Suppose Deana’s had paid $6,000 for one year’s insurance on June 1, 2010. Debit and credit the accounts affected.??Dec. 31?????2010??????? Ensure the equation still balances and debits = credits.??Assets?=?Liabilities?+?Stockholders’ Equity????????????? HANDOUT 4 – 1, continued (d) The company had acquired Property, Plant & Equipment costing $40,000 on January 1, 2010. Suppose that the depreciation on this Equipment was calculated to be $2,000 for 2010. Debit and credit the accounts affected.?????????????? Ensure the equation still balances and debits = credits.??Assets?=?Liabilities?+?Stockholders’ Equity????????????? (e) On December 1, 2010, the company had sold $500 in gift certificates for decorating services to a customer. On December 31, 2010, the accountant received an envelope containing $400 worth of redeemed gift certificates, not yet recorded in the company’s books. Debit and credit the accounts affected.??Dec. 31?????2010??????? Ensure the equation still balances and debits =…

Attachments:

work in process inventory january 1 find out the missing part using accounting stand 739939

Work in process inventory, January 1 38,400

Raw Materials:

Raw materials inventory 8,000

Raw materials purchases 64,000

Cost of raw materials 72,000

Less raw materials Dec 31 **,***

Cost of Raw Materials Used

Direct Labor 160,000.00

Manufacturing Overhead:

Indirect labor 3,200.00

Heat light and power 1,600.00

Total Manufacturing Overhead 4800.00

Total Manufacturing Cost ***,***

Total cost of work in process during period ***

Less work in progress inventory ***

Cost of goods manufactured ****

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Work in process inventory, January 1 38,400 Raw Materials: Raw materials inventory 8,000 Raw materials purchases 64,000 Cost of raw materials 72,000 Less raw materials Dec 31 **,*** Cost of Raw Materials Used Direct Labor 160,000.00 Manufacturing Overhead: Indirect labor 3,200.00 Heat light and power 1,600.00 Total Manufacturing Overhead 4800.00 Total Manufacturing Cost ***,*** Total cost of work in process during period *** Less work in progress inventory *** Cost of goods manufactured ****

i am going to post the arcadia work sheet so you will have a better understanding fo 1038916

I am going to post the Arcadia work sheet so you will have a better understanding for my question: Arcadia Hospital Income Statement YTD Dec 31, 2005 (Dollars in Millions) Operating Revenues 2005 % of rev Budget Over/(Under) Patient revenues 500 550 less: Allowance for doubtful accounts 13 14 equals Net patient revenues 488 536 Other Income: Investments 75 60 Misc 5 0 Total Operating Revenue 568 100.00% 596 Operating expenses: Wages 200 35.24% 180 Taxes & Benefits 75 13.22% 70 Temporary/Contract Labor 5 0.88% 0 Medical/surgical supplies 25 4.41% 30 Other misc supplies 5 0.88% 5 Dues/subscriptions 3 0.53% 3 Transcription expense 10 1.76% 15 Leases & rentals 50 8.81% 45 Malpractice Insurance 75 13.22% 70 Other Insurance 30 5.29% 32 Professional Fees 20 3.52% 20 Utilities 15 2.64% 10 Maintenance & Repairs 15 2.64% 10 Depreciation/Amortization 7 1.23% 7 Interest Expense 1 0.18% 1 Total Operating Expenses 536 94.45% 498 Net Income 32 5.55% 98 Given what I placed above, I do not understand how to determine the revenue variance. I just need an explanation on how one figures this out. I have read the chapter and looked at several websites, but all I need is a general understanding so I can complete this and answer the given questions. Thank you.

calculate each division 8217 s ri interpret your results calculate each division 821 1260639

Calculate each division’s RI. Interpret your results.

Calculate each division’s EVA. Interpret your results.

Complete the performance evaluation report for this subunit (round to two dec- imal places).

Q43. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit?

Which items should be investigated if part of management’s decision criteria is to investigate all variances equal to or exceeding $5,000 and exceeding 10% (both criteria must be met)?

Q45. Should only unfavorable variances be investigated? Explain.

Is it possible that the variances are due to a higher-than-expected sales vol- ume? Explain.

Q47. Will management place equal weight on each of the $5,000 variances? Explain.

Which balanced scorecard perspective is being addressed through this perfor- mance report? In your opinion, is this performance report a lead or a lag indica- tor? Explain.

Q49. List one key performance indicator for the three other balanced scorecard per- spectives. Make sure to indicate which perspective is being addressed by the indi- cators you list. Are they lead or lag indicators? Explain.

Q50. Calculate the company’s profit margin. Interpret your results.

Calculate the company’s asset turnover. Interpret your results.

Q52. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results.

Calculate the company’s RI. Interpret your results.

Q54. Calculate the company’s EVA. Interpret your results.

Calculate each division’s profit margin. Interpret your results.

Calculate each division’s asset turnover. Interpret your results.

Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results.

Q58. Calculate each division’s RI. Interpret your results and offer a recommendation for any division with negative RI.

Calculate each division’s EVA. Interpret your results.

Describe some of the factors that management considers when setting its mini- mum target rate of return.

Q60. Complete the performance evaluation report for this subunit (round to two dec- imal places).

Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit?

Q62. Which items should be investigated if part of management’s decision criteria is to investigate all variances equal to or exceeding $10,000 and exceeding 10% (both criteria must be met)?

Should only unfavorable variances be investigated? Explain.

Q64. Is it possible that the variances are due to a higher-than-expected sales volume? Explain.

Will management place equal weight on each of the $10,000 variances? Explain.

Which balanced scorecard perspective is being addressed through this perfor- mance report? In your opinion, is this performance report a lead or a lag indica- tor? Explain.

Q67. List one key performance indicator for the three other balanced scorecard per- spectives. Make sure to indicate which perspective is being addressed by the indi- cators you list. Are they lead or lag indicators? Explain.

Calculate the company’s profit margin. Interpret your results.

Calculate the company’s asset turnover. Interpret your results.

Q70. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results.

Calculate the company’s RI. Interpret your results.

Calculate the company’s EVA. Interpret your results.

Calculate each division’s profit margin. Interpret your results.

Q74. Calculate each division’s asset turnover. Interpret your results.

Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results.

Calculate each division’s RI. Interpret your results and offer a recommendation for any division with negative RI.

Q77. Calculate each division’s EVA. Interpret your results.

Describe some of the factors that management considers when setting its mini- mum target rate of return.

Calculate Lawlor’s profit margin for 2013.

Calculate Draper’s profit margin, asset turnover, and EVA for 2013.

Q81. What are the two product segments? Gather data about each segment’s net sales, operating income, and identifiable assets.

Calculate ROI for each segment.

Which segment has the highest ROI? Explain why.

If you were on the top management team and could allocate extra funds to only one divi- sion, which division would you choose? Why?

Q85. Irwin has identified a supplier, Cheap Paper, that can provide paper products at a 10% cost reduction. The paper quality is not the same as that of the current paper used in produc- tion. If Irwin uses the supplier, he will certainly achieve his personal bonus goals; however, other company goals may be in jeopardy. Identify the key performance issues at risk and recommend a plan of action for Irwin.

Q86. If an asset has either too long a useful life or too high an estimated salvage value, what happens, from an accounting perspective, when that asset is worn out and has to be dis- posed of?

Q87. Do the rules of GAAP (generally accepted accounting principles) mandate specific lives for different types of assets? What is the role of the outside auditor in evaluating the reason- ableness of depreciation lives and salvage values?

Q88. Develop a list of key performance indicators for the product.

money limited began the construction of a new building on the 1 february 20×5 constr 776670

Money Limited began the construction of a new building on the 1 February 20X5. Construction costs incurred in 20X5 were paid for as follows:

 

C

On 1February

500 000

On 1 July

600 000

On 1November

800000

The construction of the building ended on the 1 December 20X5 when the building was complete and ready for its intended use. This building is to be depreciated over 10 years to a nil residual value using the straight-line method.

The construction was financed by a loan of Cl 900 000 from Cash Limited. The loan was raised on 1 January 20X5 specifically to facilitate the construction of the building. The interest rate is 25% per annum. There were no capital repayments during the year. Surplus funds were invested at 20% per annum. The interest is compounded annually.

The building is a qualifying asset for the purposes of IAS 23.

Required:

a) Calculate the amount of borrowing costs that are eligible for capitalization during the year ended 31December 20X5.

b) Calculate the depreciation for the year ended 31December 20X5.

c) Calculate the carrying amount of the buildings as at 31 December 20X5.

the following is a list of activities that companies perform in relation to their re 761795

The following is a list of activities that companies perform in relation to their receivables.

  1. Selling receivables to a factor.

  2. Reviewing company ratings in The Dun and Bradstreet Reference Book of American Business.

  3. Collecting information on competitorsAc€?c payment period policies.

  4. Preparing monthly accounts receivable aging schedule and investigating problem accounts.

  5. Calculating the accounts receivable turnover and average collection period.

    Instructions:

    Match each of the activities listed above with a purpose of the activity listed below.

  6. Determine to whom to extend credit.

  7. Establish a payment period.

  8. Monitor collections.

  9. Evaluate the liquidity of receivables.

  10. Accelerate cash receipts from receivable when necessary.

larryac cs building supplies lbs is a locally owned and operated hardware store lbs 762239

LarryAc€?cs Building Supplies (LBS) is a locally owned and operated hardware store. LBS uses a perpetual inventory system.

The following transactions (summarized) have been selected from 2013:
  
a. Sold merchandise for cash (cost of merchandise $241,350). $ 530,000
b.

Received merchandise returned by customers as unsatisfactory (but in perfect condition),
for cash refund (original cost of merchandise $2,300).

3,600
c. Sold merchandise (costing $3,960) to a customer, on account with terms 2/10, n/30. 6,600
d. Collected half of the balance owed by the customer in (c) within the discount period. 3,234
e. Granted an allowance to the customer in (c). 1,150
Required:
1.

Compute Sales Revenue, Net Sales, and Gross Profit for LBS.

What is the Sales Revenue, Net Sales and Gross profit?