Search here for Tutorials

A1. (Bond Valuation) A $1,000 Face Value Bond Has A Remaining Maturity Of 10 Years And A Required Return Of 9%. The Bond's Coupon Rate Is 7.4%. What Is The Fair Value Of This Bond?

A1. (Bond Valuation) A $1,000 Face Value Bond Has A Remaining Maturity Of 10 Years And A

Corporate Financial Management (3rd Edition): Emery, Douglas R., Finnerty, John D., & Stowe, John D. (2007)
Individual assignment: Text Problem Set: Chapter 5, Problems

A1. (Bond Valuation)

A1. (Bond Valuation) A $1,000 Face Value Bond Has A Remaining Maturity Of 10 Years And A Required Return Of 9%. The Bond's Coupon Rate Is 7.4%. What Is The Fair Value Of This Bond?
                                                         CLICK HERE FOR SOLUTION
Labels: ,

A2. (Comparing borrowing costs) Stephens Security has two financing alternatives


Corporate Financial Management (3rd Edition): Emery, Douglas R., Finnerty, John D., & Stowe, John D. (2007)
Individual assignment: Text Problem Set IV: Chapter 20, Problems

A2 Stephens Security
A2. (Comparing borrowing costs) Stephens Security has two financing alternatives:
(1) A publicly placed $50 million bond issue. Issuance costs are $1 million, the bond has a 9% coupon paid semiannually, and the bond has a 20-year life.
(2) A $50 million private placement with a large pension fund. Issuance costs are $500,000, the bond has a 9.25% annual coupon, and the bond has a 20-year life. Which alternative has the lower cost (annual percentage yield)?
                                                      CLICK HERE FOR SOLUTION
Labels:

B1. (Choosing Financial Targets) Bixton Company's new chief financial officer is evaluating Bixton's capital structure. She is concerned that the firm might be underleveraged, even though the firm has larger-than-average research and development and foreign tax credits when compared to other firms in its industry. Her staff prepared the industry comparison shown here.

B1. (Choosing Financial Targets) Bixton Company's new chief financial officer is evaluating Bixton's

Corporate Financial Management (3rd Edition): Emery, Douglas R., Finnerty, John D., & Stowe, John D. (2007)
Individual assignment: Text Problem Set IV: Chapter 17, Problems
B1. (Choosing Financial Targets)

B1. Bixton Company's
a. Bixton's objective is to achieve a credit standing that falls, in the words of the chief financial officer, "comfortably within the ‘A' range." What target range would you recommend for each of the three credit measures?

b. Before settling on these target ranges, what other factors should Bixton's chief financial officer consider?

c. Before deciding whether the target ranges are really appropriate for Bixton in its current financial situation, what key issues specific to Bixton must the chief financial officer resolve?

Rating Category        Fixed Charge Coverage Funds from operation/total debt  Long term debt/capitalization
Aa                            4.00-5.25x                    60%-80%                                  17-23%
A                              3.00-4.30                     45-65                                         22-32
Baa                          1.95-3.40                      35-55                                         30-41
                                                      CLICK HERE FOR SOLUTION
Labels:

A1. (Net Income and Net Cash Flows) Julie Stansfield has a bicycle rental shop with annual revenues of $200,000. Cash operating expenses for rent, labor, and utilities are $70,000. Depreciation is $40,000. Julie's tax rate is 40%.

A1. (Net Income and Net Cash Flows) Julie Stansfield has a bicycle rental shop with annual revenues

Corporate Financial Management (3rd Edition): Emery, Douglas R., Finnerty, John D., & Stowe, John D. (2007)
Individual assignment: Text Problem Set IV: Chapter 10, Problems

A1. (Net Income and Net Cash Flows)

A1. Julie Stansfield

A1. (Net Income and Net Cash Flows) Julie Stansfield has a bicycle rental shop with annual revenues of $200,000. Cash operating expenses for rent, labor, and utilities are $70,000. Depreciation is $40,000. Julie's tax rate is 40%.
a. What should be Julie's net income?
b. What is her net cash flow?
                                                     CLICK HERE FOR SOLUTION
Labels:

A5. (Investment criteria) Compute the NPV, IRR, and payback period for the following investment. The cost of capital is 10%.

A5. (Investment criteria) Compute the NPV, IRR, and payback period for the following investment.

Corporate Financial Management (3rd Edition): Emery, Douglas R., Finnerty, John D., & Stowe, John D. (2007)
Individual assignment: Text Problem Set IV: Chapter 9, Problems
A5. Compute the NPV

A5. (Investment criteria) Compute the NPV, IRR, and payback period for the following investment. The cost of capital is 10%.

YEAR         0                     1                      2                     3
Cash flow  -200,000     100,000          100,000           150,000
                                                       CLICK HERE FOR SOLUTION
Labels: ,

A4.(Investment Criteria)An investment of $100 returns exactly $100 in one year. The cost of capital is 10%.

A4.(Investment Criteria)An investment of $100 returns exactly $100 in one year. The cost of capital is

Corporate Financial Management (3rd Edition): Emery, Douglas R., Finnerty, John D., & Stowe, John D. (2007)
Individual assignment: Text Problem Set IV: Chapter 9, Problems

A4.(Investment Criteria)
A4. An investment of $100

a. What are the payback, NPV, and IRR for this investment?
b. Is this a profitable investment?

                                                      CLICK HERE FOR SOLUTION
Labels:

(Calculating the WACC) The required return on debt is 8%, the required return on equity is 14%, and the marginal tax rate is 40%. If the firm is financed 70% equity and 30% debt, what is the weighted average cost of capital?

(Calculating the WACC) The required return on debt is 8%, the required return on equity is 14%, and the marginal tax rate is 40%. If the firm is financed 70% equity and 30% debt, what is the weighted average cost of capital?
                                                     CLICK HERE FOR SOLUTION
Labels:

AA4. (Estimating the WACC with three sources of capital) Eschevarria Research has the capital structure given here. If Eschevarria’s tax rate is 30%, what is its WACC?


                                   Book value          Market value        Before tax cost of capital
Bonds                         $1,000                 $1,000                 8%
Preferred stock           400                      300                      9%
Common stock           600                      1,700                   14%
                                                        CLICK HERE FOR SOLUTION
Labels:

ACC 281 week 4 P11-1A On January 1, 2008, the ledger of Mane Company contains the following liability accounts.


Financial Accounting Transaction Analysis: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

ACC 281 Week Four Solution Learning Team Assignment

Prepare current liability entries, adjusting entries, and current liabilities section.

P11-1A On January 1, 2008, the ledger of Mane Company contains the following liability accounts.

During January the following selected transactions occurred.
Jan 5 sold merchandise for cash totaling $22,680, which includes 8% sales taxes.
12 Provided services for customers who had made advance payments of $10,000. (Credit Service Revenue)
14 Paid state revenue department for sales taxes collected in December 2007($7,700).
20 Sold 800 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1-year warranty.
21 Borrowed $18,000 from UCLA Bank on a 3-month, 8%, $18,000 note.
25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes.

Instructions
(a) Journalize the January transactions.
(b) Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7% of sales of the new product(Hint: Use on third of a month for the UCLA Bank note.)
(c) Prepare the current liabilities section of the balance sheet at January 31, 2008. assume no change in accounts payable.
                                                       CLICK HERE FOR SOLUTION
Labels:

ACC 281 P10-3A On January 1, 2008, Pele Company purchased the following two machines for use in its production process


Financial Accounting Transaction Analysis: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

ACC 281 Week Three
Learning Team Assignment

P10-3A Compute depreciation under different methods.

On January 1, 2008, Pele Company purchased the following two machines for use in its production process.
Machine A: The cash price of this machine was $38,000. Related expenditures included: sales tax $1,700, shipping costs $150, insurance during shipping $80, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Pele estimates that the useful life of the machine is 5 years with a $5,000 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used.

Machine B: The recorded cost of this machine was $160,000. Pele estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period.

Instructions
(a) Prepare the following for Machine A.
(1) The journal entry to record its purchase on January 1, 2008.
(2) The journal entry to record annual depreciation at December 31, 2008.
(b) Calculate the amount of depreciation expense that Pele should record for machine B each year of its useful life under the following assumptions.
(1) Pele uses the straight-line method of depreciation.
(2) Pele uses the declining-balance method. The rate used is twice the straight-line rate.
(3) Pele uses the units-of-activity method and estimates that the useful life of the machine is 125,000 units. Actual usage is as follows: 2008, 45,000 units; 2009, 35,000 units; 2010, 25,000 units; 2011, 20,000 units.
(c) Which method used to calculate depreciation on machine B reports the highest amount of depreciation expense in year 1 (2008)? The highest amount in year 4 (2011)? The highest total amount over the 4-year period?
                                                     CLICK HERE FOR SOLUTION
Labels: , ,

ACC 281 E10-13 Herzogg Company, organized in 2008, has the following transactions related to intangible assets.


Financial Accounting Transaction Analysis: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

ACC 281 Week Three
Individual Assignment

E10-13 Herzogg Company, organized in 2008, has the following transactions related to intangible assets. 1/2/08 Purchased patent (7-year life) $560,000 4/1/08 Goodwill purchased (indefinite life) 360,000 7/1/08 10-year franchise; expiration date 7/1/2018 440,000 9/1/08 Research and development costs 185,000 Instructions Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2008, recording any necessary amortization and reporting all intangible asset balances accurately as of that date.
                                                    CLICK HERE FOR SOLUTION

ACC 281 The ledger of Hixson Company at the end of the current year shows accounts receivable 120,000


ACC 281 E9-3 Journalize entries to record allowance for doubtful accounts using two different bases.

ACC 281 Week Three
Individual Assignment ACC 281

Financial Accounting Transaction Analysis: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)
Individual Assignment

E9-3 Journalize entries to record allowance for doubtful accounts using two different bases.

E9-3 The ledger of Hixson Company at the end of the current year shows accounts receivable 120,000, sales 840,000 and sales returns and allowance 30,000.

Instructions
A) If Hixson uses the direct write off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Hixson determines that fells 1.400 balance is uncollectible.

B) If allowance for doubtful accounts has a credit balance of 2,100 in the trial balance journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1 % of net sales, and (2) 10 % of accounts receivable

C) If allowance for doubtful accounts has a debit balance of $200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable.
                                                     CLICK HERE FOR SOLUTION
Labels:

XACC 280 Week 6 Julie Molony opened Julie’s Maids Cleaning Service Inc. on July 1, 2008. During July, the company


XACC 280 Week 6

Financial Accounting Concepts and Principles: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

3. Assignment: Comprehensive Problem
• Complete the Comprehensive Problem on pp. 189–190 of Financial Accounting.
• Use the templates in Appendix G to complete the problem; complete all six tabs.
• Post the completed Appendix G as an attachment.
• Due Date: Day 6 [post to your Individual forum]

July 1 Issued $14,000 of common stock for $14,000 cash.
1 Purchased a used truck for $10,000, paying $3,000 cash and the balance on account.
3 Purchased cleaning supplies for $800 on account.
5 Paid $1,800 on a one-year insurance policy, effective July 1.
12 Billed customers $3,800 for cleaning services.
18 Paid $1,000 of amount owed on truck, and $400 of amount owed on cleaning supplies.
20 Paid $1,600 for employee salaries.
21 Collected $1,400 from customers billed on July 12.
25 Billed customers $1,500 for cleaning services.
31 Paid gas and oil for the month on the truck, $400.
31 Paid a $600 cash dividend.                                   CLICK HERE FOR SOLUTION


The chart of accounts for Julie’s Maids Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries Expense.

Instructions
(a) Journalize and post the July transactions. Use page J1 for the journal.

(b) Prepare a trial balance at July 31 on a worksheet.

(c) Enter the following adjustments on the worksheet, and complete the worksheet.
(1) Earned but unbilled fees at July 31 were $1,300.
(2) Depreciation on equipment for the month was $200.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows $100 of cleaning supplies on hand at July 31.
(5) Accrued but unpaid employee salaries were $500.

(d) Prepare the income statement and a retained earnings statement for July, and a classified balance sheet at July 31, 2008.

(e) Journalize and post the adjusting entries. Use page J2 for the journal.

(f ) Journalize and post the closing entries, and complete the closing process. Use page J3 for the journal.

(g) Prepare a post-closing trial balance at July 31.
                                                       CLICK HERE FOR SOLUTION
Labels:

XACC 280 E4-1 The trial balance columns of the worksheet for Briscoe Company at June 30, 2008, are as follows:


XACC 280 Week 4 BRISCOE COMPANY
 
Financial Accounting Concepts and Principles: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

2. Assignment: Preparing a Financial Statement Worksheet
Complete E4-1 on pp. 176–177 of Financial Accounting.
Use the template in Appendix E to complete the 10-column worksheet.
Post the completed worksheet as an attachment.


BRISCOE COMPANY
Worksheet
For the Month Ended June 30, 2008
Trial Balance
Account Titles Dr. Cr.
Cash $2,320
Accounts Receivable 2,440
Supplies 1,880
Accounts Payable $1,120
Unearned Revenue 240
Common Stock 3,600
Service Revenue 2,400
Salaries Expense 560
Miscellaneous Expense 160
$7,360 $7,360

Other data:
1. A physical count reveals $300 of supplies on hand.
2. $100 of the unearned revenue is still unearned at month-end.
3. Accrued salaries are $280.

Instructions
Enter the trial balance on a worksheet and complete the worksheet.
                                                         CLICK HERE FOR SOUTION
Labels:

XACC 280 Week 3 P3-1A MASASI COMPANY, INC. Trial Balance June 30, 2008 Account Number Debit Credit 101


Financial Accounting Concepts and Principles: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

XACC 280 Week 3

4. CheckPoint: Adjusting Entries, Posting, and Preparing an Adjusted Trial Balance
Complete parts a, b and c of P3-1A on pp. 128–129 of Financial Accounting.

Use the templates in Appendix D. Complete all three tabs.

Post the completed Appendix D as an attachment.

P3-1A MASASI COMPANY, INC.                                    CLICK HERE FOR SOLUTION
P3-1A MASASI COMPANY, INC. Trial Balance June 30, 2008 Account Number Debit Credit 101 Cash $ 7,150 112 Accounts Receivable 6,000 126 Supplies 2,000 130 Prepaid Insurance 3,000 157 Office Equipment 15,000 201 Accounts Payable $ 4,500 209 Unearned Service Revenue 4,000 311 Common Stock 21,750 400 Service Revenue 7,900 726 Salaries Expense 4,000 729 Rent Expense 1,000 Total $38,150 Total $38,150 In addition to those accounts listed on the trial balance, the chart of accounts for Masasi Company,Inc. also contains the following accounts and account numbers:No. 158 Accumulated Depreciation—Office Equipment, No. 212 Salaries Payable,No. 244 Utilities Payable,No. 631 Supplies Expense,No. 711 Depreciation Expense,No. 722 Insurance Expense, and No. 732 Utilities Expense. Other data: 1. Supplies on hand at June 30 are $600. 2. A utility bill for $150 has not been recorded and will not be paid until next month. 3. The insurance policy is for a year. 4. $2,500 of unearned service revenue has been earned at the end of the month. 5. Salaries of $2,000 are accrued at June 30. 6. The office equipment has a 5-year life with no salvage value. It is being depreciated at $250 per month for 60 months. 7. Invoices representing $1,000 of services performed during the month have not been recorded as of June 30. Instructions (a) Prepare the adjusting entries for the month of June. Use J3 as the page number for your journal. (b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column. (c) Prepare an adjusted trial balance at June 30, 2008.
                                                   CLICK HERE FOR SOLUTION
Labels: ,

XACC 280 XACC 280 Week 2 P2-2A Jane Kent is a licensed CPA. During the first month of operations of her business, Jane Kent, Inc., the following events and transactions occurred.


Financial Accounting Concepts and Principles: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

XACC 280 Week 2

2. Assignment: Journalizing, Posting and Preparing a Trial Balance

Complete P2-2A on p. 81 of Financial Accounting, using the templates in Appendix C for your answers. Each part of the problem corresponds to one tab in Appendix C. Complete all three tabs of Appendix C.

P2-2A Jane Kent is a licensed CPA. During the first month of operations of her business, Jane Kent, Inc., the following events and transactions occurred. May 1 Stockholders invested $25,000 cash in exchange for common stock. 2 Hired a secretary-receptionist at a salary of $2,000 per month. 3 Purchased $2,500 of supplies on account from Read Supply Company. 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed client $2,100 for services provided. 12 Received $3,500 advance on a management consulting engagement. 17 Received cash of $1,200 for services completed for H. Arnold Co. 31 Paid secretary-receptionist $2,000 salary for the month. 31 Paid 40% of balance due Read Supply Company. Jane uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies,No. 201 Accounts Payable,No. 205 Unearned Revenue,No. 311 Common Stock,No. 400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense
                                                        CLICK HERE FOR SOLUTION
Labels:

ACC 280 / XACC 280 E10-13 Herzogg Company, organized in 2008, has the following transactions related to intangible assets.


Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

ACC 280 E10-13 Herzogg Company
XACC 280 E10-13 Herzogg Company

E10-13 Herzogg Company, organized in 2008, has the following transactions related to intangible assets. 1/2/08 Purchased patent (7-year life) $560,000 4/1/08 Goodwill purchased (indefinite life) 360,000 7/1/08 10-year franchise; expiration date 7/1/2018 440,000 9/1/08 Research and development costs 185,000 Instructions Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2008, recording any necessary amortization and reporting all intangible asset balances accurately as of that date.
                                                       CLICK HERE FOR SOLUTION
Labels:

FIN 370 Week 5 A firm’s current balance sheet is as follows. a. What is the firm’s weighted-average cost of capital


Basic Finance: An Introduction to Financial Institutions, Investments, and Management by Mayo
Axia College of University of Phoenix (UoP)

FIN 370 Week 5                                                                                  CLICK HERE FOR SOLUTION


Text Problem 3 A firm’s current balance sheet is as follows:

A firm’s current balance sheet is as follows:
Assets $100 Debt $10
Equity $90

a. What is the firm’s weighted-average cost of capital at various combinations of debt and equity; given the following information? Show work.

Debt/Assets After-Tax Cost of Debt Cost of Equity Cost of Capital
0% 8% 12% ?
10% 8% 12% ?
20% 8% 12% ?
30% 8% 13% ?
40% 9% 14% ?
50% 10% 15% ?
60% 12% 16% ?

b. Construct a pro forma balance sheet that indicates the firm’s optimal capital structure. Compare this balance sheet with the firm’s current balance sheet. What course of action should the firm take?
Assets $100 Debt $?
Equity $?

c. As a firm initially substitutes debt for equity financing, what happens to the cost of capital, and why?

d. If a firm uses too much debt financing, why does the cost of capital rise?
                                                      CLICK HERE FOR SOLUTION
Labels:

XACC 280 P10-5A At December 31, 2008, Jimenez Company reported the following as plant assets.

ACC 280 P10-5A At December 31, 2008, Jimenez Company reported the following as plant assets.

Homework help of ACC 280 P10-5A At December 31, 2008, Jimenez Company reported
Homework tutorial in ACC 280 P10-5A At December 31, 2008, Jimenez Company reported
Homework solution of ACC 280 P10-5A At December 31, 2008, Jimenez Company reported

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)


Land $ 4,000,000
Buildings $28,500,000
Less: Accumulated depreciation—buildings 12,100,000 16,400,000
Equipment 48,000,000
Less: Accumulated depreciation—equipment 5,000,000 43,000,000
Total plant assets $63,400,000

During 2009, the following selected cash transactions occurred.
April 1 Purchased land for $2,130,000.
May 1 Sold equipment that cost $780,000 when purchased on January 1, 2005. The equipment was sold for $450,000.
June 1 Sold land purchased on June 1, 1999, for $1,500,000.The land cost $400,000.
July 1 Purchased equipment for $2,000,000.
Dec. 31 Retired equipment that cost $500,000 when purchased on December 31, 1999. No salvage value was received.

Instructions
(a) Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year life and no salvage value. The equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement.
(b) Record adjusting entries for depreciation for 2009. (c) Prepare the plant assets section of Jimenez’s balance sheet at December 31, 2009.
                                                         CLICK HERE FOR SOLUTION
Labels:

XACC 280 E10-9 Presented below are selected transactions at Ingles Company for 2008. Jan. 1

ACC 280 E10-9 Presented below are selected transactions at Ingles Company for 2008. Jan. 1 Retired

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)
                                                                                                        CLICK HERE FOR SOLUTION


Homework help in ACC 280 E10-9 Presented below are selected transactions at Ingles Company for
Homework tutorial of ACC 280 E10-9 Presented below are selected transactions at Ingles Company
Homework solution of ACC 280 E10-9 Presented below are selected transactions at Ingles Company

E10-9 Presented below are selected transactions at Ingles Company for 2008. Jan. 1 Retired a piece of machinery that was purchased on January 1, 1998.The machine cost $62,000 on that date. It had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2005.The computer cost $40,000. It had a useful life of 5 years with no salvage value. The computer was sold for $14,000. Dec. 31 Discarded a delivery truck that was purchased on January 1, 2004. The truck cost $39,000. It was depreciated based on a 6-year useful life with a $3,000 salvage value. Instructions Journalize entries for disposal of plant assets. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on assets disposed of. Ingles Company uses straight-line depreciation. (Assume depreciation is up to date as of December 31, 2007.)
                                                    CLICK HERE FOR SOLUTION
Labels:

XACC 280 E10-7 Brainiac Company purchased a delivery truck for $30,000 on January 1, 2008.The

ACC 280 E10-7 Brainiac Company purchased a delivery truck for $30,000 on January 1, 2008.The XACC 280 E10-7 Brainiac Company purchased a delivery truck for $30,000 on January 1, 2008.The

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

Homework help in ACC 280 E10-7 Brainiac Company
Homework tutorial of ACC 280 E10-7 Brainiac Company
Homework solution of XACC 280 E10-7 Brainiac Company            CLICK HERE FOR SOLUTION

E10-7 Brainiac Company purchased a delivery truck for $30,000 on January 1, 2008.The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2008 and 12,000 in 2009.

Instructions
Compute depreciation using different methods
(a) Compute depreciation expense for 2008 and 2009 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining balance method.
(b) Assume that Brainiac uses the straight-line method.
(1) Prepare the journal entry to record 2008 depreciation.
(2) Show how the truck would be reported in the December 31, 2008, balance sheet.
                                                    CLICK HERE FOR SOLUTION
Labels:

ACC 280 E10-13 Herzogg Company, organized in 2008, has the following transactions related to

ACC 280 E10-13 Herzogg Company, organized in 2008, has the following transactions related to

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

homework Help in ACC 280 Exercise 10-13
homework tutorial 0f XACC 280 Exercise 10-13
homeworksolution of XACC 280 Exercise 10-13

Exercise 10-13 Herzogg Company, organized in 2008, has the following transactions related to intangible assets.
1/2/08 Purchased patent (7-year life) $560,000                                  CLICK HERE FOR SOLUTION
4/1/08 Goodwill purchased (indefinite life) 360,000
7/1/08 10-year franchise; expiration date 7/1/2018 440,000
9/1/08 Research and development costs 185,000

Instructions
Prepare the necessary entries to record these intangibles.
All costs incurred were for cash.
Make the adjusting entries as of December 31, 2008, recording any necessary amortization and reporting all intangible asset balances accurately as of that date.
                                                       CLICK HERE FOR SOLUTION
Labels:

XACC 280 Exercise 10-2 Trudy Company incurred the following costs.

ACC 280 Exercise 10-2 Trudy Company incurred the following costs.

ACC 280 E10-2

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)                        CLICK HERE FOR SOLUTION


Homework Help in ACC 280 E10-2 Trudy Company
Homework tutorial of XACC 280 E10-2 Trudy Company
Homework solution of XACC 280 E10-2 Trudy Company

Exercise 10-2 Trudy Company incurred the following costs.
1. Sales tax on factory machinery purchased $5,000
2. Painting of and lettering on truck immediately upon purchase 700
3. Installation and testing of factory machinery 2,000
4. Real estate broker’s commission on land purchased 3,500
5. Insurance premium paid for first year’s insurance on new truck 880
6. Cost of landscaping on property purchased 7,200
7. Cost of paving parking lot for new building constructed 17,900
8. Cost of clearing, draining, and filling land 13,300
9. Architect’s fees on self-constructed building 10,000

Instructions
Indicate to which account Trudy would debit each of the costs
                                                       CLICK HERE FOR SOLUTION
Labels:

XACC 280 E15-11 Scully Corporation’s comparative balance sheets are presented below

ACC 280 E15-11 Scully Corporation’s comparative balance sheets are presented below.

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008).
Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

Homework Help XACC 280 E15-11 Scully Corporation’s
Homework solution XACC 280 E15-11 Scully Corporation’s
Homework tutorials XACC 280 E15-11 Scully Corporation’s

E15-11 Scully Corporation’s comparative balance sheets are presented below.

SCULLY CORPORATION                                                                  CLICK HERE FOR SOLUTION
Balance Sheets
December 31
2008 2007
Cash $ 4,300 $ 3,700
Accounts receivable 21,200 23,400
Inventory 10,000 7,000
Land 20,000 26,000
Building 70,000 70,000
Accumulated depreciation (15,000) (10,000)
Total $110,500 $120,100

Accounts payable $ 12,370 $ 31,100
Common stock 75,000 69,000
Retained earnings 23,130 20,000
Total $110,500 $120,100

Scully’s 2008 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.

Instructions
Compute the following ratios for 2008.
(a) Current ratio.
(b) Acid-test ratio.
(c) Receivables turnover.
(d) Inventory turnover.
(e) Profit margin.
(f) Asset turnover.
(g) Return on assets.
(h) Return on common stockholders’ equity.
(i) Debt to total assets ratio.
                                                    CLICK HERE FOR SOLUTION
Labels:

XACC 280 Exercise 15-9 The income statement for Christensen, Inc., appears below

ACC 280 Exercise 15-9 The income statement for Christensen, Inc., appears below
XACC 280 Exercise 15-9 The income statement for Christensen, Inc., appears below

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008).
Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

Homework Help XACC 280 E15-9 The income statement for Christensen, Inc
Homework tutorial ACC 280 E15-9 The income statement for Christensen, Inc
Homework solution XACC 280 E15-9 The income statement for Christensen, Inc

Exercise 15-9
Exercise 15-9 The income statement for Christensen, Inc., appears below

CHRISTENEN, INC.                                                                 CLICK HERE FOR SOLUTION
Income Statement
For the Year Ended December 31, 2011

Sales $400,000
Cost of goods sold 230,000
Gross profit 170,000
Expenses ( include $16,000 interest & $24,000,income taxes) 105,000
Net income 65,000

Additional information:
1. The weighted-average common shares outstanding in 2008 were 30,000 shares.
2. The market price of Christensen. Inc. stock was $13 in 2008.
3. Cash dividends of $26,000 were paid, $ 5,000 of which were to preferred stockholders.

Compute the following ratios for 2011.
a. Earnings per share.
b. Price-earnings
c. Payout.
d. Times interest earned
                                                    CLICK HERE FOR SOLUTION
Labels: ,

XACC 280 E15-7 Bennis Company has the following comparative balance sheet


XACC 280 E15-7 Bennis Company has the following comparative balance sheet

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008).
Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)

Homework tutorial E15-7 Bennis Company
Homework Help in ACC 280 E15-7 Bennis Company
Homework solution of XACC 280 E15-7 Bennis Company

XACC 280
ACC 280

E15-7 Bennis Company has the following comparative balance sheet data.    CLICK HERE FOR SOLUTION


BENNIS COMPANY
Balance Sheets
December 31 2009 2008
Cash $ 15,000 $ 30,000
Receivables (net) 70,000 60,000
Inventories 60,000 50,000
Plant assets (net) 200,000 180,000 $345,000 $320,000
Accounts payable $50,000 $60,000
Mortgage payable (15%) 100,000 100,000
Common stock, $10 par 140,000 120,000
Retained earnings 55,000 40,000 $345,000 $320,000

Additional information for 2009:
1. Net income was $25,000.
2. Sales on account were $410,000. Sales returns and allowances were $20,000.
3. Cost of goods sold was $198,000.

Instructions
Compute the following ratios at December 31, 2009.
(a) Current.
(b) Acid-test.
(c) Receivables turnover.
(d) Inventory turnover
                                                    CLICK HERE FOR SOLUTION
Labels:

FIN 200 2-27,28, 29 Prepare a statement of cash flows for the Crosby Corporation


Complete Problems 27, 28, and 29 on pp. 51-53.

Fin 200 Week 1 TUTORIAL cash flows for the Crosby Corporation
Fin 200 Week 1 SOLUTION cash flows for the Crosby Corporation
Fin 200 Week 1 ANSWER cash flows for the Crosby Corporation

Foundations of Financial Management: Block Hirt Danielsen
Introduction to Finance: Harvesting the Money Tree
Axia College of University of Phoenix (UoP)

FIN 200 2-27,28, 29 Crosby Corporation

Cash Flow Preparation
Resource: Ch. 2 of Foundations of Financial Management
Problems 27, 28, and 29 on pp. 51-53.

27 Prepare a statement of cash flows for the Crosby Corporation

CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 2008                               CLICK HERE FOR SOLUTION



Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,200,000
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,000
Gross profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,000
Selling and administrative expense . . . . . . . . . . . . . . . . . . . . 420,000
Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330,000
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Earnings before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240,000
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000

CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 2008

Earnings after taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,000
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Earnings available to common stockholders . . . . . . . . . . . . . $ 150,000
Common shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . 120,000
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.25

CROSBY CORPORATION
Income Statement
For the Year Ended December 31, 2008

Earnings after taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,000
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Earnings available to common stockholders . . . . . . . . . . . . . $ 150,000
Common shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . 120,000
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.25

Statement of Retained Earnings
For the Year Ended December 31, 2008
Retained earnings, balance, January 1, 2008 . . . . . . . . . . . . . . . . . . . . $500,000
Add: Earnings available to common stockholders, 2008 . . . . . . . . . . 150,000
Deduct: Cash dividends declared and paid in 2008 . . . . . . . . . . . . . 50,000
Retained earnings, balance, December 31, 2008 . . . . . . . . . . . . . . . . . $600,000

Comparative Balance Sheets
For 2007 and 2008
Year-End Year-End
2007 2008                                                                                                 CLICK HERE FOR SOLUTION


Assets
Current assets:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 70,000 $100,000
Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 350,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410,000 430,000
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 30,000
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830,000 910,000
Investments (long-term securities) . . . . . . . . . . . . . . . . . . . 80,000 70,000
Plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,400,000
Less: Accumulated depreciation . . . . . . . . . . . . . . . . . . . 1,000,000 1,150,000
Net plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,250,000
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,910,000 $2,230,000

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000 $ 440,000
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 400,000
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 50,000
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 720,000 890,000

Long-term liabilities:
Bonds payable, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 120,000
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 790,000 1,010,000

Stockholders’ equity:
Preferred stock, $100 per value . . . . . . . . . . . . . . . . . . . . . . 90,000 90,000
Common stock, $1 par value . . . . . . . . . . . . . . . . . . . . . . . . 120,000 120,000
Capital paid in excess of par . . . . . . . . . . . . . . . . . . . . . . . . 410,000 410,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 600,000
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . 1,120,000 1,220,000
Total liabilities and stockholders’ equity . . . . . . . . . . . . . . $1,910,000 $2,230,000

28. Describe the general relationship between net income and net cash flows from operating activities for the firm.

29. Has the buildup in plant and equipment been financed in a satisfactory manner? Briefly discuss.
                                                    CLICK HERE FOR SOLUTION
Labels: , ,

A companies balance sheet has 3 components on the right side. Based on the information below, determine the firms WACC


a. there are 10000 shares of preferred stock, purchased at a price of $90; the preferred stock pays a 10% annual dividend and has a face value of $100/share [hint: determine the preferred shareholders expected return and the total market value. Plug into WACC formula after doing parts b and c]

b. there are 100,000 common shares outstanding; while the par value is $1/share, the shares were actually purchased for $2/share and shareholders expect them to pay $.50/share for the next dividend and the dividends will continue to grow 4%/yr [hint: determine expected return of common shareholders and total market value of common shares; then plug info into WACC formula]

c. there are 1000, $1000 face value, 5% semi-annual coupon 30 year bonds. The bonds just sold for $900. [hint: first determine the bonds YTM; then determine the market value of the bonds]

d. determine WACC using WACC formula after first determining the % of total market value than each of the 3 components above represent. The corporate tax rate is 40%
                                                      CLICK HERE FOR SOLUTION

The Fashion Shoe Company operates a chain of women’s shoe shops around the country. The shops carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold (in addition to a small basic salary) in order to encourage them to be aggressive in their sales efforts.


The following worksheet contains cost and revenue data for Shop 48 and is typical of the company’s many outlets:
Per Pair of Shoes
Selling price $ 30.00
Variable expenses:
Invoice cost $ 13.50
Sales commission 4.50
Total variable expenses $ 18.00

Annual Fixed expenses:
Advertising $ 30,000
Rent 20,000
Salaries 100,000
Total fixed expenses  $ 150,000                                                          CLICK HERE FOR SOLUTION


1. Calculate the annual break-even point in dollar sales and in unit sales for Shop 48.

2. Prepare a CVP graph showing cost and revenue data for Shop 48 from zero shoes up to 17,000 pairs of shoes sold each year. Clearly indicate the break-even point on the graph.

3. If 12,000 pairs of shoes are sold in a year, what would be Shop 48's net operating income or loss?

4. The company is considering paying the store manager of Shop 48 an incentive commission of Shop 48 an incentive commission of 75 cents per pair of shoes (in addition to the salesperson's commission). If this change is made, what will be the new break-even point in dollar sales and in unit sales?

5. Refer to the original data. As an alternative to (4) above, the company is considering paying the store manager 50 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be the shop's net operating income or loss if 15,000 pairs of shoes are sold?

6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $31,500 annually. If this change is made, what will be the new break-even point in dollar sales and in unit sales for Shop 48? Would you recommend that the change be made? Explain."
                                                      CLICK HERE FOR SOLUTION
Labels:

Company A has WACC 10%. The firm follows a policy of adding or subtracting 3% to adjust for the risk of projects (classified as average, high, and low risk). Which of these mutually exclusive projects would you accept under this policy?


Project A Project B Project C
(low risk) (high risk) (average risk)
CFO -50 -120 -75
CF1 65 150 100
CF2 30 175 100
CF3 25 190 100
                                                   CLICK HERE FOR SOLUTION
Labels:

What is the standard deviation of the following scenario, given that the expected value is $100? State Probability NPV GOOD 0.25 150$ Neutral .50 100$ Bad 0.25 50$

What is the standard deviation of the following scenario, given that the expected value is $100? State Probability NPV GOOD 0.25 150$ Neutral .50 100$ Bad 0.25 50$

                                                         CLICK HERE FOR SOLUTION

FIN 200 W2 P3-34. Using the financial statements for the Goodyear Calendar Company, calculate the 13 basic ratios Computing all the ratios


Fin 200 Week 2 CheckPoint: Financial Ratios Goodyear Calendar Company Solution
Fin 200 Week 2 CheckPoint: Financial Ratios Goodyear Calendar Company Tutorial
Fin 200 Week 2 CheckPoint: Financial Ratios Goodyear Calendar Company Answer
Complete Problem 34 on p. 84.

Introduction to Finance: Harvesting the Money Tree
Resource: Ch. 3 of Foundations of Financial Management
Axia College of University of Phoenix (UoP)
Block-Hirt-Danielsen: Foundations of Financial Management, 13th Edition

II. Financial Analysis and Planning

3. Financial Analysis                                                                       CLICK HERE FOR SOLUTION

34. Using the financial statements for the Goodyear Calendar Company, calculate the 13 basic ratios found in the chapter. Computing all the ratios (LO2)
Block-Hirt-Danielsen:
Foundations of Financial Management, 13th Edition II. Financial Analysis and Planning 3. Financial Analysis
Chapter 3 Financial Analysis 85

GOODYEAR CALENDAR COMPANY

Balance Sheet
December 31, 2008
Assets

Current assets:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,000
Marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,000
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 370,000
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000
Less: Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . (100,000)
Net plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 350,000
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 760,000

GOODYEAR CALENDAR COMPANY
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 90,000
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Accrued taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000
Long-term liabilities:
Bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,000
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280,000

Stockholders' equity
Preferred stock, $100 par value . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Common stock, $1 par value . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Capital paid in excess of par . . . . . . . . . . . . . . . . . . . . . . . . . . 230,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . 480,000
Total liabilities and stockholders' equity . . . . . . . . . . . . . . . . . . . . $ 760,000

GOODYEAR CALENDAR COMPANY
Income Statement
For the Year Ending December 31, 2008
Sales (on credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000,000
Less: Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,000
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000
Less: Selling and administrative expenses . . . . . . . . . . . . . . . 400,000*
Operating profit (EBIT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Less: Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Earnings before taxes (EBT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280,000
Less: Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,000
Earnings after taxes (EAT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 168,000
*Includes $10,000 in lease payments.
                                                                                                           CLICK HERE FOR SOLUTION
Labels:
Subscribe to: Posts (Atom)