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Danner Corporation reported net sales

Danner Corporation reported net sales

Question
	

1. Danner Corporation reported net sales of $600,000, $680,000, and $800,000 in the years 2011, 2012, and 2013, respectively. If 2011 is the base year, what percentage do 2013 sales represent of the base?


2. Richards, Inc. has the following income statement (in millions):
RICHARDS, INC.
Income Statement
For the Year Ended December 31, 2012
Net Sales $180
Cost of Goods Sold 60
Gross Profit 120
Operating Expenses 75
Net Income $ 45


Using vertical analysis, what percentage is assigned to net income?

Columbia Southern MBA 5101 Unit III Assignment

Columbia Southern MBA 5101 Unit III Assignment

Question
	Unit III Assignment 
 
PowerPoint Presentation 
 
Review both Milton Friedman's “Traditional View of Business Responsibility” (p. 72) and Archie Carroll's “Four 
Responsibilities of Business” (p. 72-73) in the textbook, and develop an understanding of their ethical principles. You are 
also welcome and encouraged to research them using outside sources. You are to compare the two theories and create a 
PowerPoint presentation on your comparative study. Your PowerPoint presentation should include the following elements: 
 
? Slide 1: Title page 
? Slides 2-3: A summary of Milton Friedman's main points 
? Slides 4-5: A summary of Archie Carroll's main points 
? Slide 6: Which principles would you like implemented at your current place of work (or where you wish to work in 
the future), and why? 
? Slides 7-8: Provide two detailed examples of organizations where you believe that Friedman's theories are 
applied. 
? Slides 9-10: Provide two detailed examples of organizations where you believe that Carroll's theories are applied. 
? Slide 11: List of sources using APA guidelines

Please help with my finance homework?

Please help with my finance homework?

Question
	
Page 1
1. (TCO 4) Which of the following is true regarding the evaluation of projects? (Points : 4)

sunk costs should be included

erosion effects should be considered

financing costs need to be included

opportunity costs are irrelevant
2. (TCO 4) There are several disadvantages to the payback method, among them: (Points : 4)

payback ignores cash flows beyond the cutoff.

payback can be used in conjunction with time adjusted methods of evaluation.

payback is easy to use and to understand.

none of the above is a disadvantage.
3. (TCO 3 and 4) You can ensure that an investment is expected to create value for (Points : 4)

have a PI equal to zero.

produce negative rates of return.

have positive AARs.

have positive IRRs.

have positive NPVs.
4. (TCO 3 and 4) Portman's is considering adding a new product to its lineup. This product is expected to generate sales for three years, after which time the product will be discontinued. What is the project's net present value, if the firm wants to earn a 12 percent rate of return?
Year	0	1	2	3

Cash flow	-$62,000	$10,730	$20,190	$40,340 (Points : 4)

$7,611.08

$6,795.61

$1,084.41

$4,862.07

$9,682.26
5. (TCO 4) Leward Manufacturing is spending $115,000 to update its equipment. This is necessary if the firm wishes to be competitive in the marketplace and provide a wide array of product models. The company estimates that these updates will improve its cash inflows by $27,500 a year, for eight years. What is the payback period? (Points : 4)

4.18 years

5.82 years

6.62 years

7.79 years

This project never pays back
6. (TCO 4) Ignoring the option to expand: (Points : 4)

overestimates the internal rate of return on a project.

ignores the possibility that a negative net present value project might be positive, given changes over time.

ignores the possibility that one variable is the primary source of the forecasting risk associated with a project.

underestimates the net present value of a project.
7. (TCO 4) ____________, refers to the situation a firm faces when it has positive net present value projects, but cannot obtain financing for those projects. (Points : 4)

capital planning.

soft rationing.

capital rationing.

hard rationing.

a sunk cause.
8. (TCO 4) ABC Cameras is considering an investment that will have a cost of $10,000 and the following cash flows: $6,000 in year 1, $4,000 in year 2 and $3,000 in year 3. Assume the cost of capital is 10%. Which of the following is true regarding this investment? (Points : 4)

The net present value of the project is approximately $1,011

This project should be accepted because it has a negative net present value

This project’s payback period is 10 years or more

All of the above are true
9. (TCO 4) Assume Company X plans to invest $60,000 in new computers. Using Tables 9.6 and 9.7 of your textbook (Page 277), which is the second year depreciation amount under MACRS? (Points : 4)

$12,000

$19,200

$19,800

None of the above
10. (TCO 1 and 4) Assume a project has earnings before depreciation and taxes of $120,000, depreciation of $40,000, and that the firm has a 30 percent tax bracket. What are the after-tax cash flows for the project? (Points : 4)

$56,000

$96,000

a loss of $21,000

none of these
11. (TCO 8) Which of the following statements is true regarding systematic risk? (Points : 4)

is diversifiable

is the total risk associated with surprise events

it is measured by beta

it is measured by standard deviation
12. (TCO 8) Which statement is true regarding risk? (Points : 4)

the expected return is usually the same as the actual return

a key to assess risk is determining how much risk an investment adds to a portfolio

risks can always be decreased or mitigated by the financial manager

the higher the risk, the lower the return investors require for the investment
13. (TCO 8) The stock of Hobby Town has an expected return of 8.8 percent. Given the information below, what is the expected return on this stock if the economy is normal?

State of Economy	Probability of State of Economy	Rate of Return

Recession	.10	-.09

Normal	.70	?

Boom	.20	.26 (Points : 4)

3.86 percent

4.42 percent
6.43 percent

7.28 percent

8.21 percent
14. (TCO 8) You own a portfolio that consists of $8,000 in stock A, $4,600 in stock B, $13,000 in stock C, and $5,500 in stock D. What is the portfolio weight of stock D? (Points : 4)

17.68 percent

17.91 percent

18.42 percent

19.07 percent

19.46 percent
15. (TCO 8) Stock A has an expected return of 14 percent and a beta of 1.3. Stock B has an expected return of 10 percent and a beta of .9. Both stocks have the same reward-to-risk ratio. What is the risk-free rate? (Points : 4)

1.0 percent

1.8 percent

2.3 percent

2.5 percent

3.1 percent
---------------------------------------------------------------------------------------------
Page 2
1. (TCO 8) If the financial markets are strong form efficient, then: (Points : 4)

only the most talented analysts can determine the true value of a security.

only company insiders have a marketplace advantage.

technical analysis provides the best tool to gain a marketplace advantage.

no one person has an advantage in the marketplace.

every security offers the same rate of return.
2. (TCO 5) Royal Petroleum Co. can buy a piece of equipment that can be financed with debt at an after-tax cost of 8 percent and common equity at a cost of 20 percent. Assume debt and common equity each represent 50 percent of the firm's capital structure. What is the weighted average cost of capital? (Points : 4)

between 4% and 10%

between 11 and 12%

between 12 and 13%

exactly 14%

more than 14%
3. (TCO 5, 6 and 7) An issue of common stock's most recent dividend is $3.75. Its growth rate is eight percent. What is its price if the market's rate of return is 16 percent? (Points : 4)

$25.01

$46.88

$50.63

none of these
4. (TCO 5, 6 and 7) Which of the following is true regarding the cost of debt? (Points : 4)

It is the return that the firm’s creditors demand on new borrowing.

It is always equal to the weighted cost of capital.

An appropriate method to compute the cost of debt is using the coupon rate of current bonds outstanding.

All of the above are true.
5. (TCO 5) Which of the following is true regarding the cost of retained earnings? (Points : 4)

it is irrelevant to the WACC

requires new funds to be raised

need to be adjusted for the flotation costs

have a cost, which is the opportunity cost associated with stockholder funds
6. (TCO 4) A project has the following cash flows. What is the internal rate of return?
Year	0	1	2	3

Cash flow	-$520,000	$112,900	$367,200	$204,600 (Points : 4)

less than 10%

approximately 14%

more than 16%

more than 18% but less than 20%
7. (TCO 5, 6 and 7) Which one of the following is a correct statement regarding a firm's weighted average cost of capital (WACC)? (Points : 4)

the WACC can be used as the required return for all new projects.

the WACC of a leveraged firm will decrease when the tax rate decreases.

an increase in the market risk premium will tend to decrease a firm's WACC.

the WACC is a starting point for the subjective approach to setting discount rates.

a reduction in the risk level of a firm will tend to increase the firm's WACC.
8. (TCO 5, 6 and 7) The preferred stock of Blue Sky Air pays an annual dividend of $7.25 a share and sells for $54 a
 share. The tax rate is 35 percent. What is the firm's cost of preferred stock? (Points : 4)

8.56 percent

9.32 percent

11.85 percent

13.43 percent

14.47 percent
9. (TCO 2) Which one of the following statements is true concerning a bankruptcy? (Points : 4)

a Chapter 7 bankruptcy is a reorganization proceeding.

a "prepack" is intended to shorten the time a firm spends in bankruptcy.

the absolute priority rule applies to both Chapter 7 and Chapter 11 bankruptcy proceedings, and must be adhered to by the courts.

creditors cannot force a firm into bankruptcy, even though they might like to do so.

a reorganization plan, can only be approved if the firm's creditors all agree with the plan.
10. (TCO 5) Which of the following statements is true regarding the cost of capital? (Points : 4)

All other being equal, it is preferable to use market value weights than book value weights

The WACC is the most appropriate discount rate for all projects.

Should not include the cost of retained earnings.

Depends primarily on the source of the funds, not the use.
11. (TCO 2) Select any actions that do not affect the cash account. (Points : 4)

Goods are sold cash

An interest payment on a notes payable is made

A payment due is received from a client

Dividends are paid to shareholders

Inventory is purchased and paid for with credit
12. (TCO 2) Which of the following statements is true? (Points : 4)

The optimal credit policy minimizes the total cost of granting credit.

Firms should avoid offering credit at all cost.

An increase in a firm's average collection period generally indicates that an increased number of customers are taking advantage of the cash discount.

Character, refers to the ability of a firm to meet its credit obligations out its operating cash flows.

The optimal credit policy, is the policy that produces the largest amount of sales for a firm.
13. (TCO 2) All else constant, a decrease in the accounts receivable period will: (Points : 4)

lengthen the accounts payable period.

shorten the inventory period.

lengthen the operating cycle.

shorten the cash cycle.

shorten the accounts payable period.
14. (TCO 2) Highland, Inc. has the following estimated quarterly sales for next year. The accounts receivable period is 30 days. How much does the firm expect to collect in the fourth quarter? Assume that each month has 30 days.
Q1	Q2	Q3	Q4

Sales	$3,200	$4,500	$4,400	$2,900 (Points : 4)

$3,250

$3,400

$3,600

$3,750

$3,900
15. (TCO 1) Which one of the following actions best matches the primary goal of financial management? (Points : 4)

increasing the net, working capital while lowering the long-term asset requirements

improving the operating efficiency, thereby increasing the market value of the stock

increasing the firm’s market share

reducing fixed costs and increasing variable costs

increasing the liquidity of the firm by transferring short-term debt into long-term debt
---------------------------------------------------------------------------------------------
Page 3
1. (TCO 1) Which of the following are capital structure concerns?
I. how to obtain short-term financing

II. the company's financing mix

III. the cost of funds

IV. how and where to raise money (Points : 4)

I and II

I, II and III

II, III and IV

I, III and IV

All of the above
2. (TCO 1) Market values reflect which of the following: (Points : 4)

The amount someone is willing to pay today for an asset.

The value of the asset based on generally-accepted accounting principles.

The asset’s historical cost.

A and B only

None of the above
3. (TCO 1) Use the following tax table to answer this question:
Taxable Income	Tax Rate

$0-	$50,000	15%

$50,001-	75,000	25

$75,001-	100,000	34

$100,001-	335,000	39

$335,001-	10,000,000	34
Riddell, Inc. earned $144,320 in taxable income for the year. How much tax does the company owe on this income? (Points : 4)

$39,535

$49,069

$51,285

$56,285

$78,535
4. (TCO 3) Regional Bank offers you an APR of 19 percent compounded semiannually, and Local Bank offers you an EAR of 20.10 percent for a new automobile loan. You should choose ______________ because its _______ is lower. (Points : 4)

Regional Bank, APR

Local Bank, EAR

Regional Bank, EAR

Local Bank, APR
5. (TCO 3) You deposited $8,000 in your bank account today. Which of the following will increase the future value of your deposit, assuming that all interest is reinvested? Assume the interest rate is a positive value. Select all that apply: (Points : 4)

a decrease in the interest rate

increasing the initial amount of your deposit

decreasing the frequency of the interest payments

extending the length of the investment period
6. (TCO 3) Thirteen years from now, you will be inheriting $30,000. What is this inheritance worth to you today, if you can earn four percent interest compounded annually? (Points : 4)

$18,017.22

$20,741.87

$23,190.98

$26,359.88

$28,846.15
7. (TCO 3) The new home that you want to buy costs $249,500. You plan to make a cash down payment of 20 percent and finance the balance over 10 years at 6.75 percent. What will be the amount of your monthly mortgage payment? (Points : 4)

$2,291.89

$2,809.10

$3,287.46

$3,412.67

$4,145.68
8. (TCO 3) Which type of loan is comparable to the present value of a future lump sum? (Points : 4)

effective annual rate

amortized

interest-only

annual percentage

pure discount
9. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest. The bonds mature in 25 years. What is the current price of the bond if the YTM is 13 percent? Assume annual payments. (Points : 4)

$1078

$1085

$927

$1000
10. (TCO 6) The market where new securities are offered is called the _____ market. (Points : 4)

primary

main

secondary

principal

dealer
11. (TCO 7) A taxpaying, levered firm's optimal capital structure: (Points : 4)

is 100 percent equity financing.

consists of equal amounts of debt and equity financing.

is the mixture of debt and equity financing that minimizes the firm's aftertax cost of debt.

is the mixture of debt and equity financing that minimizes the weighted average cost of capital.

is 100 percent debt financing.
12. (TCO 3) SmithKline Company's bonds are currently selling for $1,157.75 per $1000 par-value bond. The bonds have a 10 percent coupon rate and will mature in 10 years. What is the approximate yield to maturity? (Points : 4)

6.96%

7.69%

11.0%

12.1%
13. (TCO 8) Which of the following is true regarding bonds? (Points : 4)

Bonds do not carry default risk.

Bonds are not sensitive to changes in the interest rates.

Moody’s and Standard and Poor’s provide information regarding a bond’s interest rate risk.

Municipal bonds are not free of default risk.

None of the above is true
14. (TCO 8) Which one of the following bonds is the most sensitive to interest rate movements? (Points : 4)

zero-coupon, five year

seven percent annual coupon, five year

zero-coupon, 10 year

five percent semi-annual coupon, 10 year

five percent annual coupon, 10 year
15. (TCO 6) Star Industries has one bond issue outstanding. An indenture provision prohibits the firm from redeeming the bonds during the first two years. This provision is referred to as a _____ provision. (Points : 4)

deferred call

market

liquidity


debenture

sinking fund
---------------------------------------------------------------------------------------------
Page 4
1. (TCO 6) Which of the following is true regarding income bonds? (Points : 4)

Are relatively uncommon

Can be exchanged for a fixed number of shares at maturity only

Can be exchanged for a fixed number of shares before maturity

Allow the holder to require the issuer to buy the bond back
2. (TCO 6 and 7) The term debenture refers to (Points : 4)

long-term, secured debt.

long-term, unsecured debt.

the after-acquired property clause.

a document covering the specific terms of the debt issue.
3. (TCO 6) Company A has a bond outstanding with $90 annual interest payment, a market price of $820, and a maturity date in five years. Assume the par value to be $1,000. What is the bond's current yield? (Points : 4)

9%

14%

11%

Cannot be determined

None of the above
4. (TCO 2) Which one of the following practices will reduce a firm's collection float? (Points : 4)

utilizing zero-balance accounts

depositing checks weekly, rather than daily

requiring all customers pay by check, rather than with cash

installing a lockbox system
paying all bills five days sooner
5. (TCO 2) Storage and tracking costs, insurance and taxes, and losses due to theft are examples of: (Points : 4)

Inventory depletion costs

Sunk costs

Carrying costs

Shortage costs
6. (TCO 1) Recent announcements of massive layoffs have increased stock prices for certain companies. Critics argue that this reaction encourages companies to fire employees. Do you agree or disagree? (Points : 10)
7. (TCO 4) What are sunk costs? Provide at least two real-life examples of sunk costs for a project. Should sunk costs be included as incremental cash flows? Why or why not? Explain your rationale. (Points : 10)
8. (TCO 8) What is the difference between business risk and financial risk? If Company A has a higher business risk than Company B, should its cost of capital be higher? Why or why not? Explain your rationale. (Points : 10)
9. (TCO 2) What are the costs associated with extending (or not extending) a credit policy to customers? (Points : 10)
10. (TCO 6 and 7) How can you calculate the cost of debt? What methods can you use? Provide at least two examples. (Points : 10)

Mathematics Questions

Mathematics Questions

Question
	Write the detail step by step solution of 16 questions from the book I attached in PDF file.
Excluding questions below:
1.1.8
1.3.9
1.7.4
1.10.10
2.1.9
2.1.10
2.6.11
3.3.13
3.5.6(b)
4.1.5(a)
4.4.15
5.2.8
7.1.7(a)
7.2.6
	
,

		Attachments
		
 (4969.1 KB)

Finance!!!!!!!!!!!!

Finance!!!!!!!!!!!!

Question
	
1. What are some actions that companies have taken to make takeovers more difficult to achieve?
2. Which is better for a stock? Current dividends or growth? Please explain your answer.
3. How would you figure out whether or not a stock is a "good buy"?
4. Provide an unique example of a publicly traded preferred stock. Who issued the stock? Why would someone want to purchase this preferred stock instead of another form of security issued by the same firm?

Chapters 1-6 – Principles of Accounting II

Chapters 1-6 – Principles of Accounting II

Question
	


Chapters 1-6 
Principles of Accounting II



1. Maintenance costs at a Tierce Corporation factory are listed below:



Machine - Hours


Maintenance Cost


January


4,198


$ 60,787


February


4,161


$ 60,545


March


4,114


$ 59,859


April


4,156


$ 55,785


May


4,177


$ 60,650


June


4,135


$ 59,670


July


4,190


$ 60,726


August


4,169


$ 60,546


September


4,068


$ 59,352






Management believes that maintenance cost is a mixed cost that depends on machine-hours. Using the 
high-low method to estimate the variable and fixed components of this cost, these estimates would be 
closest to:






$6.54 per machine-hour; $33,332 per month








$13.42 per machine-hour; $55,785 per month








$11.04 per machine-hour; $14,441 per month








$11.04 per machine-hour; $15,876 per month










2.




Sperberg Corporation's operating leverage is 4.8. If the company's sales increase by 13.75%, its net 
operating income should increase by about:






13.75%




4.80%




57.05%




66.00%






3.





The following partially completed T-accounts summarize transactions for Fabatz 
Company during the year:


Raw Materials




---





---



Beg Bal


1,650




8,800




8,800












Work in Process




---





---



Beg Bal


2,800




22,100




7,650








8,200








4,800












Finished Goods




---





---



Beg Bal


6,400




23,300




22,100












Manufacturing Overhead




---





---





1,150




4,800




2,500








1,700












Wages and Salaries Payable




---





---





13,700


Beg Bal


1,250










13,700






Cost of Goods Sold




---





---





23,300











The manufacturing overhead was:




$550 underapplied




$1,700 overapplied




$550 overapplied




$1,700 underapplied






4.






Candice Corporation has decided to introduce a new product. The product can be manufactured using 
either a capital-intensive or labor-intensive method. The manufacturing method will not affect the quality 
or sales of the product. The estimated manufacturing costs of the two methods are as follows:








Capital-


Labor-Intensive





Intensive


Variable manufacturing cost per unit




$


14.00






$


17.60




Fixed manufacturing cost per year




$


2,524,000






$


1,382,400




---







The company's market research department has recommended an introductory selling price of $30 per 
unit for the new product. The annual fixed selling and administrative expenses of the new product are 
$500,000. The variable selling and administrative expenses are $2 per unit regardless of how the new 
product is manufactured.






Required:


a.


Calculate the break-even point in units if Candice Corporation uses the (Do not round intermediate 
calculations.):








Break-even point 
in units


Capital-intensive manufacturing method




Labor-intensive manufacturing method




---







b.


Determine the unit sales volume at which the net operating income is the same for the two 
manufacturing methods. (Do not round intermediate calculations. Round your answer to the 
nearest whole number.)






Sales volume








c.


Assuming sales of 310,000 units, what is the degree of operating leverage if the company uses 
the: (Do not round intermediate calculations. Round your answers to 2 decimal places.)








Degree of operating 
leverage


Capital-intensive manufacturing method




Labor-intensive manufacturing method




---







d.


What is your recommendation to management concerning which manufacturing method should be 
used, if the sales volume is in excess of the one calculated under Requirement (b)?










Labor-intensive manufacturing method




Capital-intensive manufacturing method










5.


Ermoin Inc. uses the FIFO method in its process costing system. The following data concern the 
operations of the company's first processing department for a recent month.


















Work in process, beginning:












Units in process






1,300






Percent complete with respect to materials






80


%







Percent complete with respect to conversion






20


%




Costs in the beginning inventory:












Materials cost




$


3,040






Conversion cost




$


5,165


















Units started into production during the month






16,800






Units completed and transferred out






16,800


















Costs added to production during the month:












Materials cost




$


113,960






Conversion cost




$


507,900


















Work in process, ending:












Units in process






1,300






Percent complete with respect to materials






40


%




Percent complete with respect to conversion






30


%




---







Required:






Using the FIFO method:






a.


Determine the equivalent units of production for materials and conversion costs.








Materials


Conversion


Equivalent units of production






---







b.


Determine the cost per equivalent unit for materials and conversion costs. (Round your answers to 
2 decimal places.)








Materials


Conversion


Cost per equivalent unit


$


$


---







c.


Determine the cost of ending work in process inventory. (Round your intermediate calculations to 
2 decimal places and final answer to the nearest dollar amount.)






Cost of ending work in process inventory


$






d.


Determine the cost of units transferred out of the department during the month. (Round your 
intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)






Cost of units transferred out


$






6.


Erkkila Inc. reports that at an activity level of 8,100 machine-hours in a month, its total variable inspection 
cost is $231,579 and its total fixed inspection cost is $196,830.




What would be the total variable inspection cost at an activity level of 8,300 machine-hours in a month?





Assume that this level of activity is within the relevant range. (Do not round your intermediate 
calculations. Round your final answer to nearest whole dollar.)






$231,579




$201,690




$428,409




$237,297






7.


Mannarelli Corporation uses the FIFO method in its process costing system. Operating data for the 
Casting Department for the month of September appear below:








Units


Percent Complete 
with Respect to 
Conversion


Beginning work in process inventory


30,000


20%


Transferred in from the prior department during September


121,000




Ending work in process inventory


40,000


90%






According to the company's records, the conversion cost in beginning work in process inventory was 
$17,260 at the beginning of September. Additional conversion costs of $542,568 were incurred in the 
department during the month.




The cost per equivalent unit for conversion costs for September is closest to (Round off to three decimal 
places.):






$4.484




$3.707




$3.654




$3.848






8.


Budget data for the Bidwell Company are as follows:






Sales (130,000 units)






$1,300,000


Expenses:


Fixed


Variable




Raw materials




$ 390,000




Direct labor




260,000




Overhead


$ 130,000


195,000




Selling and administrative


143,000


65,000




Total expenses


$ 273,000


$ 910,000


1,183,000





Net operating income






$ 117,000






The number of units Bidwell would have to sell to earn a net operating income of $195,000 is:






130,000 units




91,000 units




156,000 units




195,000 units






9.


Wilson Company has a process costing system. The Assembly Department had the following costs for 
May:








Materials


Labor & Overhead


Work in process inventory, May 1


$ 64,000


$ 51,000


Costs added during May


$ 238,000


$ 119,000






Assume that Wilson uses the weighted-average method and that for May the company computed 17,000 
equivalent units for labor and overhead. The cost per equivalent unit for labor and overhead for the 
month would have been:






$10.00




$21.00




$7.00




$3.00






10.


DeAnne Company produces a single product. The company's variable costing income statement 
for August appears below:


DeAnne Company 
Income statement 
For the month ended August 31


Sales ($19 per unit)


$798,000


Variable expenses:




Variable cost of goods sold


378,000


Variable selling expense


84,000


Total variable expenses


462,000


Contribution margin


336,000


Fixed expenses:







Fixed manufacturing


111,000


Fixed selling and administrative


37,000


Total fixed expenses


148,000


Net operating income


$188,000





The company produced 37,000 units in August and the beginning inventory consisted of 10,000 
units. Variable production costs per unit and total fixed costs have remained constant over the 
past several months. 
The value of the company's inventory on August 31 under the absorption costing method is (Do 
not round your intermediate calculations.):




$45,000




$60,000




$74,405




$70,000






11.


Carr Company produces a single product. During the past year, Carr manufactured 43,000 units 
and sold 29,000 units. Production costs for the year were as follows:


Fixed manufacturing overhead


$ 430,000


Variable manufacturing overhead


$ 548,250


Direct labor


$ 361,200


Direct materials


$ 464,400





Sales totaled $2,233,000, variable selling expenses totaled $438,600, and fixed selling and 
administrative expenses totaled $188,000. There were no units in beginning inventory. Assume 
that direct labor is a variable cost. 
Under absorption costing, the ending inventory for the year would be valued at (Do not round 
your intermediate calculations.):




$678,059




$788,509




$587,300




$753,997






12.



Hickory Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. 
The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing 
an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. 
The following additional information is available for the company as a whole and for Products Y and 
Z: (The total estimated overhead cost may not agree with the sum of allocated overhead costs to 
each product.)






Activity Cost Pool


Activity Measure


Estimated 
Overhead 
Cost


Expected Activity


Machining


Machine-hours


$


213,400


11,000


MHs


Machine setups


Number of setups


$


61,600


140


setups


Production design


Number of products


$


78,000


2


products


General factory


Direct labor-hours


$


244,000


10,000


DLHs


---







Activity Measure


Product Y


Product Z


Machining


6,400


4,600


Number of setups


60


80


Number of products


1


1


Direct labor-hours


7,400


2,600


---







Required:


What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)






Machining activity cost pool


$ per MH






13.


Tsuchiya Corporation manufactures a variety of products. Last year, the company's variable 
costing net operating income was $78,500. Fixed manufacturing overhead costs deferred in 
inventory under absorption costing amounted to $48,000. What was the absorption costing net 
operating income last year?




$48,000




$126,500




$30,500




$78,500






14.


Smith Company sells a single product at a selling price of $30 per unit. Variable expenses are $12 per 
unit and fixed expenses are $62,100. Smith's break-even point is:






10,350 units







3,450 units




2,070 units




5,175 units






15.


On April 1, Stelter Corporation had $38,000 of raw materials on hand. During the month, the company 
purchased an additional $64,000 of raw materials. During April, $74,000 of raw materials were 
requisitioned from the storeroom for use in production. These raw materials included both direct and 
indirect materials. The indirect materials totaled $7,400. Prepare journal entries to record these events. 
Use those journal entries to answer the following question:





The credits to the Work in Process account as a consequence of the raw materials transactions in 
April total:




65,700




74,000




0




64,000






16.


Temblador Corporation purchased a machine 7 years ago for $342,500 when it launched product E26T. 
Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by 
a new model 330 machine costing $346,500 or by a new model 230 machine costing $308,500. 
Management has decided to buy the model 230 machine. It has less capacity than the model 330 
machine, but its capacity is sufficient to continue making product E26T. Management also considered, 
but rejected, the alternative of dropping product E26T and not replacing the old machine. If that were 
done, the $308,500 invested in the new machine could instead have been invested in a project that 
would have returned a total of $308,500.





In making the decision to invest in the model 230 machine, the opportunity cost was:




$342,500




$409,500




$346,500




$308,500






17.



The following production and average cost data for two levels of monthly production volume have been 
supplied by a company that produces a single product:






Production volume


1,000 units


2,000 units


Direct materials


$ 67.70 per unit


$ 67.70 per unit


Direct labor


$ 67.00 per unit


$ 67.00 per unit


Manufacturing overhead


$ 93.60 per unit


$ 66.90 per unit






The best estimate of the total monthly fixed manufacturing cost is (Do not round your intermediate 
calculations. Round your final answer to nearest whole dollar.):






$133,800




$53,400




$93,600




$224,300






18.


A manufacturing company that produces a single product has provided the following data concerning its most recent 
month of operations:



Units in beginning inventory


0


Units produced


8,000


Units sold


7,800


Units in ending inventory


200






Variable costs per unit:




Direct materials


$47


Direct labor


$45


Variable manufacturing overhead


$13


Variable selling and administrative


$10


Fixed costs:




Fixed manufacturing overhead


$276,000


Fixed selling and administrative


$88,000





What is the absorption costing unit product cost for the month? (Round your intermediate calculations to whole dollar 
value.)




$105




$140




$115




$150






19.



The following data were taken from the accounting records of Abacus Company which uses the FIFO 
method in its process costing system:






Beginning work in process inventory:


31,000 units (materials 100% complete, labor and overhead 
55% complete)


Started in process during the period:


102,000 units


Ending work in process inventory:


41,000 units (materials 100% complete, labor and overhead 
65% complete)





The equivalent units are:




Material, 102,000 units; labor and overhead, 101,600 units




Material, 117,450 units; labor and overhead, 113,750 units




Material, 73,150 units; labor and overhead, 74,700 units




Material, 133,000 units; labor and overhead, 118,650 units






20.


The following partially completed T-accounts summarize transactions for Fabatz Company 
during the year:


Raw Materials




---





---



Beg Bal


3,000




8,400




10,400












Work in Process




---





---



Beg Bal


4,400




23,700




7,400








10,900








6,900












Finished Goods




---





---



Beg Bal


8,000




24,900




23,700












Manufacturing Overhead




---





---





2,100




6,900




4,100








3,300












Wages and Salaries Payable




---





---





16,300


Beg Bal


2,600













12,800






Cost of Goods Sold




---





---





24,900











The manufacturing overhead applied was:




6,900




4,100




3,300




16,100






21.


Job 731 was recently completed. The following data have been recorded on its job cost sheet:



Direct materials


$


3,291




Direct labor-hours




78


labor-hours


Direct labor wage rate


$


13


per labor-
hour


Machine-hours




138


machine-
hours






The company applies manufacturing overhead on the basis of machine-hours. The predetermined 
overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for 
Job 731 would be:






$4,305




$6,237




$3,318




$5,397






22.


The activity in Nolan Company's Blending Department for the month of April is given below:








Number of 
units


Labor and 
overhead 
percent complete


Work in process inventory, April 1


24,000


40%


Started into process during the month


82,000




Work in process inventory, April 30


26,000


50%







All materials are added at the beginning of processing in the Blending Department.




The equivalent units for material for the month, using the FIFO method, are:






91,600 units




106,000 units




82,000 units




108,000 units






23.


During April, Division D of Carney Company had a segment margin ratio of 15%, a variable expense ratio of 60% of 
sales, and traceable fixed expenses of $33,000. Division D's sales were closest to:




$49,500




$220,000




$73,333




$132,000






24.


During the month of September, direct labor cost totaled $12,000 and direct labor cost was 40% of prime 
cost. If total manufacturing costs during September were $76,000, the manufacturing overhead was:






$30,000




$64,000




$46,000




$18,000






25.


Gangwer Corporation produces a single product and has the following cost structure:






Number of units produced each year


7,200


Variable costs per unit:




Direct materials


$49


Direct labor


$19


Variable manufacturing overhead


$11


Variable selling and administrative expense


$7


Fixed costs per year:







Fixed manufacturing overhead


$266,400


Fixed selling and administrative expense


$187,200






The absorption costing unit product cost is (Do not round your intermediate calculations.):






$37.0




$86.0




$123.0




$116.0






26.


The Donaldson Company uses a job-order costing system. The following data were recorded for 
July:




July 1


Added During July




Work in Process


---



Job Number


Inventory


Direct Materials


Direct Labor


475


$


1,150


$


430


$


230


476


$


650


$


630


$


830


477


$


830


$


650


$


1,150


478


$


630


$


850


$


1,650






Overhead is applied to jobs at the rate of 90% of direct materials cost. Jobs 475, 477, and 478 were 
completed during July and transferred to finished goods. Jobs 475 and 478 have been delivered to the 
customer. Donaldson's Work in Process inventory balance on July 31 was:






$2,677




$2,110




$5,829




$3,054






27.


Compton Company uses a predetermined overhead rate in applying overhead to production orders on a 
labor cost basis in Department A and on a machine-hours basis in Department B. At the beginning of the 
most recently completed year, the company made the following estimates:








Dept.A


Dept.B


Direct labor cost


$


63,000


$


40,000


Manufacturing overhead


$


80,010


$


68,450


Direct labor-hours




8,700




9,700


Machine-hours




4,700




18,500





What predetermined overhead rate would be used in Department A and Department B, 
respectively?




79% and $4.12




79% and $7.06




79% and $3.70




127% and $3.70






28.


Rothe Company manufactures and sells a single product that it sells for $90 per unit and has a 
contribution margin ratio of 35%. The company's fixed expenses are $54,900. If Rothe desires a monthly 
target net operating income equal to 15% of sales, the amount of sales in units will have to be 
(rounded):






1,220 units




1,743 units




4,067 units




3,050 units






29.


Gambarini Corporation is a wholesaler that sells a single product. Management has provided the 
following cost data for two levels of monthly sales volume. The company sells the product for $199.00 
per unit.






Sales volume (units)


6,000


7,000


Cost of goods sold


$ 522,600



$ 609,700



Selling and administrative costs


$ 636,600



$ 660,400







The best estimate of the total monthly fixed cost is (Do not round your intermediate calculations. Round 
your final answer to nearest whole dollar.):






$ 493,800




$ 1,159,200




$ 1,214,650




$ 1,270,100







30.


During February, Degan Inc. transferred $55,000 from Work in Process to Finished Goods and recorded 
a Cost of Goods Sold of $60,000 (assume there was enough beginning balance in the Finished goods 
inventory account). The journal entries to record these transactions would include a:






credit to Cost of Goods Sold of $60,000




credit to Finished Goods of $55,000




debit to Finished Goods of $60,000




credit to Work in Process of $55,000

A student wants to examine the relationship between anxiety for an examine

A student wants to examine the relationship between anxiety for an examine

Question
	
A student wants to examine the relationship between anxiety for an examine and the number of hours studied. The data is as follows:
Student Anxiety Scores
5
10
5
11
12
4
3
2
6
1
Study hours
1
6
2
8
5
1
4
6
5
2
1. Why is a correlation the most appropriate statistic?
2.what is the null and alternate hypothesis?
3. What is the correlation between student anxiety scores and number of study hours? Select alpha and interpret your findings. Make sure to note whether it is significant or not and what the effect size is.
4. How would you interpret this?
5. What is the probability of a type I error? What does this mean.?
6. How would you use this same information but set it up in a way that allows you to conduct a t-test? An ANOVA?

accounts data bank

accounts data bank

Question
	
36. Estimated gross profit rates may be used to
estimate a company's cost of goods sold and its ending inventory for: 

A. quarterly but not for annual financial statements.

B. both quarterly and annual financial statements.

C. neither quarterly nor annual financial statements.

D. annual but not for quarterly financial statements.



 



37. Davis Company uses LIFO for all of its inventories.
During its second quarter of 2009, Davis experienced a LIFO liquidation. Davis
fully expects to replace the liquidated inventory in the early part of the
third quarter. How should Davis report the inventory temporarily liquidated on
its income statement for the second quarter? 

A. Cost of goods sold for the second quarter should include the
acquisition cost of the goods temporarily liquidated.

B. Cost of goods sold for the second quarter should include the expected
replacement cost of the goods temporarily liquidated.

C. Cost of goods sold for the second quarter should not include the
expected replacement cost of the goods temporarily liquidated.

D. Cost of goods sold for the second quarter is not affected by the
temporary liquidation of LIFO inventory.



 







38. How would a company report a change in an
accounting principle made on the last day of the third quarter? 

A. Retrospective application to all pre-change interim periods reported.

B. No change is required.

C. Apply to current and prospective interim periods only.

D. Apply to prospective interim periods only.



 



39. Missoula Corporation disposed of one of its
segments in the second quarter and incurred a gain from disposal of
discontinued segment of $600,000, net of taxes. What is the effect of this gain
from disposal of discontinued segment? 

A. Increase net income from operations for the year by $600,000.

B. Increase second quarter net income by $600,000.

C. Increase each quarter's net income by $150,000.

D. Increase each of the last three quarters' net income by $200,000.



 



40. Frahm Company incurred a first quarter operating
loss before income tax effect of $4,000,000. This is a normal occurrence for
Frahm because of seasonal fluctuations. Experience has demonstrated the income
earned during the remaining quarters far exceeds the first quarter losses each
year. Frahm estimates its annual income tax rate will be 30 percent. What net
loss should Frahm report for the first quarter? 

A. $4,000,000

B. $2,800,000

C. $700,000

D. $0



 



41. The income tax expense applicable to the second
quarter's income statement is determined by: 

A. dividing the estimated annual income tax expense by four and allocating
the amount to the second quarter.

B. multiplying the effective income tax rate times the income before tax
for the second quarter.

C. subtracting the income tax expense applicable to the first quarter from
the income tax expense applicable to the first two quarters.

D. subtracting the income tax liability applicable to the first quarter
from the income tax liability applicable to the first two quarters.



 







42. Which of the following are established by FASB 131
as "enterprisewide disclosure" standards to provide more information
about the risks to a company?

I. Information about dominant industry segments.

II. Information about major customers.

III. Information about geographic areas 

A. Both II and III

B. Both I and III

C. Both I and II

D. I, II, and II



 



43. FASB 131 uses a(n) ______ approach to the
definition of segments. 

A. line of business

B. entity approach

C. portfolio

D. management



 



 





Essay Questions

Question and Response

Question and Response

Question
	1. Instructions to Class: Complete the Main Conference and two responses.

1. Main Conference: Respond to the following question: How are ethnocentrism and language related? Linguist George Lakoff offers the concept of “frames” to explain the conflict between Democrats and Republicans. How does this relate to the Sapir-Whorf hypothesis? 
• When drafting your answer be sure to follow the grading rubric (below) 
You are expected to 
• contribute to each conference within the time frame posted 
• 300-500 words 
• respond to your classmates, both to advance the discussion and to deepen your understanding of the topic 
• read the assigned materials in advance?these are to be informed discussions, and your postings should help further each one 
• check your submissions for correct spelling and grammar 
• cite all of your sources fully and accurately, including page numbers 
 
2. Write a response to each of the following items below.

a) Ethnocentrism and language are related because language is a representation of culture and it’s possible for culture to exhibit ethnocentrism. The text states that symbolic actions all play a role in organizing and making concrete a particular view of the world. And ethnocentrism is just thinking that your particular views are correct or better when compared to other cultural views of the world. Therefore a ethnocentric culture bias to, or more so to, a particular culture should display certain linguistic attributes that exemplify those preconceptions. For example in chapter 6 it is reveled that language can be used to construct identity of others, groups from which people want to separate themselves from. Furthermore, The text points out that rivalries between Hutu and Tutsi are referred to as “tribal conflicts”, and not conflicts between Basques and Spaniards. The reference of “tribal conflicts” imposes an ethnocentric view towards these groups. Its as if their style of legislation is primitive and unsophisticated instead of judicious and vindicated. 

George Lakoffs notion of frames is a slight variation of the Sapir-Whorf hypothesis. Sapir-Whorf hypothesis states that language shapes the way we see the world whereas, George Lakoffs states that its “frames” or mental structures that shape the way we see the world. For example, Lakoff states that conservative politics are based on a strict-father concept, and that the goal is to produce children that grow to become self-reliant. This is the “frame” to which conservative politic place around the idea of a family and that anything that doesn’t fit within that frame is wrong, e.g., same-sex marriage. Under Lakoffs thought cultural metaphors can reveal something about how speakers of a language conceptualize their world. For example sayings such as “time is money” and “war on drugs” give some insight into the Western culture. Both Lakoffs and Sapir-Whorf are ways we try to understand others along with ourselves. 

b) "If you don't understand the language, how could you ever understand the practice?"
I don't completely agree with this. Sure knowing the language helps you understand certain practices, but it's not completely necessary. You can read about practices and understand them, like all the examples in the Robbins text book. The Wari cannibals, and virgin test's in Turkey, or cock fighting. 
Or if someone translates or explains something to you. Like AOB/ICR class when you first arrive here. For example, It's considered very disrespectful to stick chopsticks up right in a bowl of rice, because to honor the dead here, they offer rice by sticking the chop sticks straight up in a bowl of rice. When you do this out in town at a resturaunt and the Japanese people see it, it reminds them of death, or even specific loved ones. The proper thing to do is use a chop stick holder or prop the chop sticks on the side of your plate, or lay them across the bowl. I don't speak the language and I both understand and respect this custom.
Yes, I think understanding the language and physically speaking to the person who practices it is probably the most reliable sorce, but it's not the only sorce. I mean isn't that what Anthropology is all about? Anthropogogists study a people or culture group and write about. Other's read about it to get a better understanding of the culture. 
That being said, there is a difference between understanding a practice and actually participating or accepting that practice as ok. I think when condoning or condeming a certain practice is where language, culture, and ethonocentrism comes in to play, but you don't necessarily have to understand the language in order to understand the practice. 















Students are expected to 
• contribute to each conference within the time frame posted 
• respond to your classmates, both to advance the discussion and to deepen your understanding of the topic 
• read the assigned materials in advance?these are to be informed discussions, and your postings should help further each one 
• check your submissions for correct spelling and grammar 
• cite all of your sources fully and accurately, including page numbers 
Your participation grade will cover both your original posting and your responses to at least two classmates' postings. 
Conferences will be graded as follows: 
Original Response 
Dimension Good
A and B Level Posts
100-80 points Acceptable
C Level Posts
70-79 points Unacceptable
D and F Level Posts
60-0 points 
Content
Contribution Posts information that is factually correct; shows full development of concept or thought. Repeats but does not add substantive information to the discussion. Posts information that is off-topic, incorrect, or irrelevant to discussion. 
References & Support Incorporates references from course material as well as personal experience Uses personal experience, but no references to readings or research. Includes no references or supporting experience. 
Classmate Replies 
Dimension Good
A and B Level Posts
100-80 points Acceptable
C Level Posts
70-79 points Unacceptable
D and F Level Posts
60-0 points 
Follow-Up Postings Elaborates on an existing posting with further comment or observation. Posts shallow contribution to discussion (e.g., agrees or disagrees); does not enrich discussion. Posts no follow-up responses to others. 
Content
Contribution Posts information that is factually correct; shows full development of concept or thought. Repeats but does not add substantive information to the discussion. Posts information that is off-topic, incorrect, or irrelevant to discussion. 
References & Support Incorporates references from course material as well as personal experience Uses personal experience, but no references to readings or research. Includes no references or supporting experience. 
 

Examples: 
Sample A-Level Original Response: 
Discussion Question:Module 3, Commentary 4 discusses how “stratified societies institutionalize inequality”. Although many of the social classes that once existed in Japan (for example, “warriors” and “townspeople”) are no longer recognized, the Burakumin continue to be discriminated against. Furthermore, those perceived to be non-Japanese (for example, Debito Arudou) are also discriminated against. Like the United States, inequality and social stratification are prevalent in Japan. 
In light of the class material, why do you think humans are so eager to classify one another in ways that promote inequalities? Provide specific examples from the course material to support your position.
 
Student Original Response:In stratified societies people are organized by social class. Humans tend to create these separations to create a hierarchy. In many societies this is done to create order but in others, as in the example from the Module explains, this can be done to enforce control For example, according to the Module, “Mundurucu men use force to c
ontrol their women, as do men in many other societies today.” 
In the United States the greatest division is in socioeconomic status. We are divided into upper, middle and lower class. Access to education in lower classes is more difficult than in other classes. Schools in less affluent areas are not as productive and, if you have the resources, those in higher classes can pay to send their children to better schools, which maintains this division. 
The module provided a “Think about it” question regarding Warren Buffet. Buffet said that, upon his death, his billions will be donated to charity rather than given to his children because they “already had more advantages than 99.9 percent of the people in the world. This is a good example of the inherent advantages of socioeconomic status in U.S. culture. 
There is also division within races. I grew up in a majority African American area and there was a division between light skinned and dark skinned. The lighter you were the more likely you were to receive advantages. In Spike Lee’s movie “School Daze” this was a major theme. The dark skinned women were called Jigaboos, a derogatory term. 
Thinking about the reading, I think the reason humans are so eager to classify one another in ways that promote inequality is because people want to protect their (real or imagined) resources and status. Warren Buffet is an exception to this in that he does not plan on leaving his wealth to his children. African Americans who divide themselves based on skin color see lighter skin coinciding with those who generally control the wealth and resources in society (white people) and therefore are attempting to align themselves with that group. 
Feedback: This post would receive a grade of 93 points. It is well-written and well-thought out. It incorporates the course material and demonstrates an understanding of the Module. It could be an even stronger post if more specific examples from the course material were included and if some of the other statements, for example, the statement about light-skinned and dark-skinned African Americans, were supported by either the course material or other academic sources. 
Sample A-Level Classmate Reply: 
Student Classmate Reply: To your point about Barack Obama, I think there are several factors that led to his name being a controversy but it, in my opinion, all boils down to the fact that he is different-he has a funny name, he spent part of his childhood overseas and, more importantly, he did not let what others thought of him define what he thought of himself and what he believed he could accomplish. As he said several times throughout his campaign - no where on Earth is his story even possible. 
As the current Module has shown, differences are often not embraced and the person/people who are different are made to feel bad for being different. This often has to do with access to resources. One possible reason for the controversy surrounding Barack Obama could be that he does not fit into the stereotype of those who have traditionally controlled the wealth and power in this country. This is similar to the post [name] made about light-skinned African Americans discriminating against dark-skinned African Americans. 
I think that because the world we live in is truly global and we begin to see and learn more of other people, cultures and their differences we will all begin to embrace these differences and learn from them rather than persecuting others because they are not like us. 
Feedback: This is a very good post and would receive a grade of 90 points. This post demonstrates an analysis of both the course material as well as the classmate's reply. It also demonstrates critical thinking and advances the conversation. It would be a stronger post if more specific examples from the course material were incorporated. Reference is made to the current Module but, what aspects of the current Module support the statements made? 
 
What makes these A-level responses? 
Incorporate the course material: the students express thoughts and opinions in light of the course material. They incorporate what has been learned in the Module into their answers to support their statements.

Demonstrate analysis and critical thinking skills: the students demonstrate that they thought critically about the main discussion question as well as their classmates' replies and offer an analysis by expanding on their statements which are supported by information from their own personal experience and the course material.