Inherent risk at the financial statement level relates to (a) business and operating-related risks and (b) financial reporting risks. The Professional Judgment in Context feature “Risks Associated with Financial Statement Misstatements”. Operations e..
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An investor has two options to choose from a)$7000 after 1 year b)$10000 after 3 years.assuming the discount rate of 9% which alternative he should opt for?
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On February 1, 2016, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of $60 million. The bonds mature on January 31, 2020 (4 years). The market yield for bonds of similar risk and maturity was 10%. Determine the price of ..
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Calistoga Produce estimates bad debt expense at 0.30% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $474,000 and $1,640, respectively, at December 31, 2012.
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On January 1, 2015, Boston Enterprises issues bonds that have a $1,750,000 par value, mature in 20 years, and pay 10% interest semiannually on June 30 and December 31. The bonds are sold at par. Prepare journal entries to record (a) the issuance of b..
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Sproles Inc. manufactures a variety of products. Variable costing net operating income was $132,000 last year and its inventory decreased by 4,250 units. Fixed manufacturing overhead cost was $16 per unit. What was the absorption costing net operatin..
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The comparative statements of Osborne Company are presented here. OSBORNE COMPANY Income Statements For the Years Ended December 31 2014 2013 Net sales $1,895,647 $1,755,607 Cost of goods sold 1,063,647 1,011,107 Gross profit 832,000 744,500 Selling ..
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Creswell Corporation's fixed monthly expenses are $29,000 and its contribution margin ratio is 56%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $..
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JJ Motors Inc. employs 39 sales personnel to market its line of luxury automobiles. The average car sells for $17,000, and a 7 percent commission is paid to the salesperson. The amount of total monthly car sales at which JJ Motors would be indifferen..
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Larsen Company purchased 13,500 shares of Warner Company for $162,000 plus a broker's fee of $4,400. Warner Company has a total of 67,500 shares of common stock outstanding and it is presumed the Larsen Company will have a significant influence over ..
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Stackhouse Industries has a new project available that requires an initial investment of $4.5 million. The project will provide unlevered cash flows of $675,000 per year for the next 20 years. The company will finance the project with a debt-to-value..
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Assume a 3 year $100,000 bond with an 11% stated rate and a 9% effective rate was sold for $105,063. Interest is paid annually. What is the interest expense in the first year of bond? What is the cash coupon payment in year 3? Prepare all of year 3 j..
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