Exacto Company reported the following net income and dividends for the years indicated:
Year Net Income Dividends
20X5 $35,000 $12,000
20X6 45,000 20,000
20X7 30,000 14,000
True Corporation acquired 75 percent of Exacto’s common stock on January 1, 20X5. On that date, the fair value of Exacto’s net assets was equal to the book value. True uses the equity method in accounting for its ownership in Exacto and reported a balance of $259,800 in its investment account on December 31, 20X7.
Required
a. What amount did True pay when it purchased Exacto’s shares?
b. What was the fair value of Exacto’s net assets on January 1, 20X5?
c. What amount was assigned to the NCI shareholders on January 1, 20X5?
d. What amount will be assigned to the NCI shareholders in the consolidated balance sheet pre-pared at December 31, 20x7?

Answer:

A. $211,800

B. $282,400

C. $70,600

D. $ 86,600

Explanation :

A. Calculation for the amount that True pay when it purchased

Balance in investment account, December 31, 20x7$259,800

Cumulative earnings since acquisition$110,000

(35,000+45,000+30,000)

Less Cumulative dividends since acquisition(46,000)

(12,000+20,000+14,000)

Total $64,000

(110,000-46,000)

Proportion of stock held by True Corporationx 0.75

Total amount debited to Investment account(48,000)

(0.75*64,000)

Purchase amount on January 1, 20X5 $211,800

(259,000-48,000)

B. Calculation for fair value of Exacto’s net assets on January 1, 20X5

True Corporation’s Purchase amount $211,800

÷True Corp.’s percentage 0.75

Fair Value of Exacto Company’s Net Assets $282,400

C. Calculation for the amount that was assigned to the NCI shareholders on January 1, 20X5

Fair Value of Exacto Company’s Net Asset$282,400

× Exacto Company’s percentage 0.25

(100%-75%)

NCI’s portion $70,600

D. Calculation for the amount that will be assigned to the NCI shareholders

True Corp’s investment balance$259,800

÷True Corp’s percentage0.75

=Fair Value of Exacto’s Net Assets 20X7 $346,400

×Exacto Company’s percentage 0.25

(100%-75%)

NCI’s Portion, December 31, 20X7 $ 86,600

($346,400×0.25)

X Corporation reported the following data for the month of August: Inventories: Beginning Ending Raw materials $36,000 $24,000 Work in process $23,000 $17,000 Finished goods $37,000 $55,000 Additional information: Budgeted manufacturing overhead cost $672,000 Budgeted direct labor cost $1,680,000 Raw materials purchased $79,000 Manufacturing overhead cost incurred $51,975 Indirect materials included in manufacturing overhead cost incurred $8,000 Manufacturing overhead cost applied to Work in Process using direct labor cost 37800 Job #82 started in August Direct materials used $4,000 Direct labor cost $6,000 Round your answers to the nearest dollar. Fill in the blank without $ or comma or period, e.g., 12345 What was Job# 82's total manufacturing cost in August using normal costing?

Item1 Time Remaining 2 hours 44 minutes 44 seconds02:44:44 Item 1Item 1 Time Remaining 2 hours 44 minutes 44 seconds02:44:44 On April 1, Garcia Publishing Company received $19,080 from Otisco, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year

Azule Co. manufactures in two sequential processes, cutting and binding. The two departments report the information below for a recent month. Cutting Binding Beginning work in process Transferred in from cutting dept. $ 1,250 Direct materials $ 1,070 2,766 Conversion 3,400 3,350 Costs added during March Direct materials $ 10,140 $ 9,456 Conversion 11,100 18,725 Transferred in from cutting dept. 17,110 Transferred to finished goods 33,000 Determine the ending balances in the Work in Process Inventory accounts of each department.

Selected information from Green Co.'s accounting records and financial statements is as follows:
Gain an sale of 1 Proceeds fron sales to custoners and s 12,802 21,s0a Purchase of Black, Inc. bonds (face amount $205,) 367,a0 Amortization of bond discount Cash dividends declared Cash dividends paid 4,800 98,000 72,800 157,600 Proceeds from sales of Green Co. comon stock
What are the net cash flows from financing activities that will be reported in the statement of cash flows? (Enter net cesh outflows with a minus sign.)

Suppose that the experiment to toss a balanced coin three times independently. Define the following events
• A is the event of getting at least one head
• B is the event of getting exactly two heads and one tail
• C is the event of getting all three coins with the same side

Please answer I have exam tomorrow and I don’t know how I answer

Last week, an investigative reporter for a major metropolitan newspaper discovered that the doctors conducting clinical trials of a new cancer treatment drug are also the principal shareholders in Cancer Solutions Inc. (CSI). CSI is the company developing and attempting to market the drug. Upon being interviewed by federal authorities, the doctors acknowledged their conflict of interest but reported that they were sold the shares at a 75% discount by CSI's chief financial officer. The CFO was concerned that CSI might not be able to meet its annual performance objectives and in turn pay his anticipated multimillion-dollar bonus.
Does an agency conflict exist between CSI's CFO and the company's shareholders?
a. Yes; CSI's CFO engaged in unethical conduct to manipulate the firm's short-term earnings and improve the likelihood of receiving his annual bonus.
b. Yes; the shares should not have been sold at a 75% discount, which is price discrimination.
c. No; professionals, such as doctors and professional money managers, would not participate in unethical activities.
d. No; in general, shareholders are satisfied with company officers engaging in any type of legal or illegal activity to ensure the chances of them receiving greater dividend payments.
Which of the following actions will help ease agency conflicts and better align managers' objectives with the firm's shareholder wealth?
a. Pay the manager a combination of salary and stock options (phased in over several years) that reward him or her for consistently increasing shareholder wealth.
b. Pay the manager a large base salary with a huge stock option package that matures on a single date.
Amalgamated Metals Corporation's stockholders are mostly individual investors, and there is relatively little institutional ownership. If several pension and mutual funds were to take large positions in Amalgamated Metals Corporation's stock, direct shareholder intervention would be___________ likely to motivate the firm's management.

1. (30 points) Please elaborate what will happen to Net Earnings to Sales and Net Earnings to Total Book Assets when you observe these trends. (a) and (b) are separate unrelated circumstances. a) Sales increased by a total of 30% in the prior three years, while Days of Sales in Inventories increased also by 30% in each of these three years. Costs of Goods Sold to Sales remained constant. b) Gross property, plant, and equipment increased by a total of 30% during the prior three years. Operating and administrative expense increased relative to sales by 30% in the prior three years. Sales remained constant. Costs of goods sold to sales remained constant. ANSWER:

Which of these is a risk in introducing a new product in the market?
A.
Consumers demand more of your product.
B.
Consumers do not find your product good enough to shift loyalty.
C.
Consumers expect you to come up with another product variant soon enough.
D.
Consumers value your new product more than the old variant.

Preparing a Process Costing Production Report (Weighted-Average Method) [LO 3-2, 3-3, 3-4]
Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information:
Units Costs
Beginning work in process (27% complete) 36,000
Direct materials $ 48,000
Conversion cost 105,000
Total cost of beginning work in process $ 153,000
Number of units started 74,000
Number of units completed and transferred to finished goods ?
Ending work in process (52% complete) 89,000
Current period costs
Direct materials $ 91,000
Conversion cost 161,000
Total current period costs $ 252,000
Required:
1 & 2. Using the weighted-average method of process costing, complete each of the following steps:
a. Reconcile the number of physical units worked on during the period.
b. Calculate the number of equivalent units.
c. Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.)
d. Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 decimal places and round your final answers to the nearest whole dollar amount.)

The number of cases of merlot wine sold by the Connor Owen winery in an eight-year period is as follows:
YEAR CASES OF MERLOT WINE
2005 281
2006 367
2007 409
2008 467
2009 369
2010 511
2011 421
2012 387
Using an exponential smoothing model with an alpha value of 0.20, estimate the smoothed value calculated as of the end of 2012. Use the average demand for 2005 through 2007 as your initial forecast for 2008, and then smooth the forecast forward to 2012. (Round your intermediate calculations and final answer to the nearest whole number.)

Spaceley’s Sprockets has just developed a new product. George Jetson, the Head of Product Development, feels that the product is a winner, but he also feels it would be an even better product if waited six more months for further development before launching. Unfortunately, Spaceley’s closest competitor, Cogsley Cogs, has a similar product in the development pipeline. George feels that if he launches the product now to get a head start on Cogsley, he has a 50% chance of achieving a high level of sales, a 30% chance of a medium level of sales, and a 20% chance of a low level of sales. If he waits, he has a 30% chance of a high level of sales, and a 70% chance of a medium level of sales, with no chance of a low level of sales. High sales represents 100,000 units, medium sales represents 65,000 units, and low sales represents 10,000 units. If his objective is to maximize his expected number of units sold, what should George do and how many units would he be expected to sell

You are planning to save for retirement over the next 25 years. To do this, you will invest $730 per month in a stock account and $330 per month in a bond account. The return of the stock account is expected to be 9.3 percent, and the bond account will pay 5.3 percent. When you retire, you will combine your money into an account with a return of 6.3 percent. How much can you withdraw each month from your account assuming a 20-year withdrawal period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Beloit Co. is a manufacturer of mini-doughnut machine makers. Early in 2015 a customer asked Beloit to quote a price for a custom-designed doughnut machine to be delivered by the end of 2015. Once purchased, the customer intends to place the machine in service in January 2016 and will use it for four years. The expected annual operating net cash flow is estimated to be $120,000. The expected salvage value of the equipment at the end of four years is about 10% of the initial purchase price. To expect a 15% required rate of return on investment, what would be the maximum amount that should be spent on purchasing the doughnut machine

TeleGlobal is an American firm producing TV sets. TeleGlobal imports TV set components from Taiwan and assemb them domestically. Suppose that in the United States, a TV set sells for $500 and that 80% of the TV set's value comes from the value of the imported components. The United States imposes a 30% tariff on TV sets and a 10% tariff on the TV set's components. Assume that costs of producing components are the same in the United States a Taiwan. Based on the information provided, the effective rate of protection that TeleGlobal receives from the tariff is:__________.
a. -17.5%
b. 70.0%
c. 110.0%
d. 24.4%
e. 47.5%

For the next fiscal​ year, you forecast net income of and ending assets of . Your​ firm's payout ratio is Your beginning​ stockholders' equity is and your beginning total liabilities are . Your​ non-debt liabilities such as accounts payable are forecasted to increase by . Assume your beginning debt is . What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your​ debt-equity ratio​ constant? The Tax Cuts and Jobs Act of 2017 temporarily allows​ 100% bonus depreciation​ (effectively expensing capital​ expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The amount of equity to issue will be

Bruce Church, Inc. is a company engaged in extensive commercial farming in Arizona and California. A provision of the Arizona Fruit and Vegetable Standardization Act requires that all cantaloupes grown in Arizona "be packed in regular compact arrangement in closed standard containers approved by the supervisor." Arizona, through its agent Pike, issued an order prohibiting Bruce Church from transporting uncrated cantaloupes from its range in Parker, Arizona, to nearby Blythe, California, for packing and processing. It would take many months and $200,000 for Bruce Church to construct a processing plan int Parker. Further, Bruce Church had $700,000 worth of cantaloupes ready for transportation. Bruce Church filed suit in federal district court challenging the constitutionality of the Arizona statutory provision on shipping cantaloupes. The court issued an injunction (essentially saying the statute was not constitutional) against the enforcement of the act on the grounds that it was an undue hardship on interstate commerce. Answer the following questions: 1. What is the Commerce Clause? 2. Will the Arizona regulation withstand Commerce Clause scrutiny? Why or why not?

eck Manufacturing reports the following information in T-account form for 2019. Raw Materials Inventory Begin. Inv. 10,300 Purchases 47,500 Avail. for use 57,800 DM used 51,000 End. Inv. 6,800 Work in Process Inventory Begin. Inv. 17,000 DM used 51,000 Direct labor 34,500 Overhead 64,000 Manuf. costs 166,500 Cost of goods manuf. 153,000 End. Inv. 13,500 Finished Goods Inventory Begin. Inv. 20,200 Cost of goods manuf. 153,000 Avail. for sale 173,200 Cost of Goods Sold 152,300 End. Inv. 20,900 Required: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.

Candlewood LLC started business on August 1, and it adopted a calendar tax year. During the year, Candlewood incurred $10,950 in legal fees for drafting the LLC's operating agreement and $5,475 in accounting fees for tax advice of an organizational nature, for a total of $16,425 of organizational costs. Candlewood also incurred $22,000 of preopening advertising expenses and $31,000 of salaries and training costs for new employees before opening for business, for a total of $53,000 of startup costs. The LLC wants to take the largest deduction available for these costs. If required, round any division to six decimal places and use in subsequent computations. Round your final answers to the nearest dollar. How much can Candlewood deduct as organizational expenses

Kiner Co. computed an overhead rate for machining costs ($520000) of $5 per machine hour. Machining costs are driven by machine hours. If computed based on direct labor hours, the overhead rate for machining costs would be $10 per direct labor hour. The company produces two products, Cape and Chap. Cape requires 62400 machine hours and 20000 direct labor hours, while Chap requires 41600 machine hours and 30000 direct labor hours. Using activity-based costing, machining costs assigned to each product is

Modern Flooring is considering a new product line. The new line would require $134,000 of fixed assets and net working capital of $24,000. The firm will apply straight-line depreciation to a zero salvage value over three years. The new line is expected to produce an operating cash flow of $35,000 the first year with that amount decreasing by 10 percent annually for two years before the new line will be discontinued. The fixed assets can be sold for $25,000 at the end of the project and all net working capital will be recovered. What is the net present value of the new line at a discount rate of 11.5 percent and a tax rate of 35 percent

According to the Western Digital Corporation FY 2017 10K, (WDC) On May 12, 2016, we completed the acquisition of SanDisk dated October 21, 2015. The aggregate purchase price of the Merger was $15.59 billion. In connection with the Merger, we entered into new debt facilities aggregating approximately $18.09 billion in principal to finance a portion of the purchase price related to the Merger. Shifts in market demands that WDC sought to overcome through the financed merger include ____, _____, and ____. Complete the sentence by selecting the single best available answer from those presented below.

Who designed the Parthenon?

The following is a portion of the current assets section of the balance sheets of Avanti's, Inc., at December 31, 2020 and 2019: 12/31/20 12/31/19 Accounts receivable, less allowance for bad debts of $9,887 and $17,439, respectively $173,948 $239,842
Required:
a. If $11,722 of accounts receivable were written off during 2020, what was the amount of bad debts expense recognized for the year? (Hint Use a T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown) Bad debt xpemse
b. The December 31, 2020, Allowance account balance includes $3,094 for a past due account that is not likely to be collected. This account has not been written off (1) If it had been written off, will there be any effect of the write-off on the working capital at December 31, 2020?

Financial Statements of a Manufacturing Firm The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes: Purchased $598,700 of materials Used $514,900 of direct materials in production Incurred $444,000 of direct labor wages Applied factory overhead at a rate of 70% of direct labor cost Transferred $1,218,900 of work in process to finished goods Sold goods with a cost of $1,185,400 Sold goods for $2,121,900 Incurred $509,700 of selling expenses Incurred $189,700 of administrative expenses a. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Focault Inc. Income Statement For the Month Ended July 31, 20Y2 $ $ Selling and administrative expenses: $ Total selling and administrative expenses $ b. Determine the inventory balances at the end of the first month of operations. Materials inventory, July 31 $ Work in process inventory, July 31 $ Finished goods inventory, July 31 $

Jamie's Motor Home Sales currently sells 1,100 Class A motor homes, 2,200 Class C motor homes, and 2,800 pop-up trailers each year. Jamie is considering adding a mid-range camper and expects that if she does so she can sell 1,500 of them. However, if the new camper is added, Jamie expects that her Class A sales will decline to 850 units while the Class C camper sales decline to 2,000. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $140,000 each. Class C homes are priced at $59,500 and the pop-ups sell for $5,000 each. The new mid-range camper will sell for $42,900. What is the erosion cost of adding the mid-range camper

What happens when the price of a good increases

A company makes bicycles. It produces 850 bicycles a month. It buys the tires for bicycles from a supplier at a cost of Rs.60 per tire. The company’s inventory carrying cost is estimated to be 15% of cost and the ordering is Rs.90 per order. Compute EOQ.
A: 639 tires

B: 522 tires

C: 580 tires

D: 621 tires

From the information given in the question above , Calculate number of orders to be made per year.

A: 35 orders

B: 39 orders

C: 37 orders

D: 32 orders

​

You have $25.36 in your account. You make deposits of $36 and $78 and make a withdrawal of $61.24. How much is in the account?

4. Which of the following are NOT typical characters used in a commercial by a company marketing to teenagers?
A Popular Radio DJs
B Current Hip-Hop Artists
C Popular Classical Musicians
D Popular Professional Athletes

Allocation is the distribution of a good or service.


True

False