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Topic: The Risk Procurement Brings
Question 1: Develop a list of procurement requirements that this project might include.
Question 2: Identify what items will be purchased and what items may need to be contracted.
Question 3: How can a contract strategy be used in this situation?
R1. At April 30, the accountant for the restaurant determines that the current replacement cost of the ending inventory is $515. Make any adjusting entry needed to apply the lower-of-cost-or market rule. Inventory would be reported on the balance she..
Prepare a consolidated statement of comprehensive income for the year ended 31/12/20X2 and a statement of financial position as at that date.
Flip Company purchased a refrigerated delivery truck for $65,000 on April 1, 2016. The plan is to use the truck for 4 years and then replace it. At the end of it’s useful life the truck is expected to have a salvage value of $10,000. Prepare the depr..
At 1/1/12 Rain Corp has 80,000 in accumulated E&P. They incur a deficit in current E&P of (50,000) for the tax year 2012. On 4/1/12 Rain Corp distributes 40,000 to its sole shareholder Nancy. Nancy’s basis at 1/1/12 in the corporation is 25,000. How ..
Swanson and Associates presently leases a copy machine under an agreement that calls for a fixed fee each month and a charge for each copy made. Swanson made 7,000 copies and paid a total of $360 in March; in May, the firm paid $280 for 5,000 copies...
Three years ago, Irene and Julie formed Hummingbird Corporation. Each transferred property to Hummingbird in exchange for 50 shares of its stock. In the current year, Jaime transfers property worth $600,000 (basis of $90,000) for 50 shares (a one-thi..
Dacosta Company had only one job in process on May 1. The job had been charged with $1,800 of direct materials, $6,966 of direct labor, and $9,936 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overh..
A firm has a profit margin of 15 percent on sales of $20,000,000. If the firm has total debt of $7,500,000, total assets of $22,500,000, what is the firm’s Return on Equity [ROE]?
ABC Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. ABC expects to produce and sell 60,000 units at a price of $20 per unit. How much is the break-even point in units..
At the end of the current year, Accounts Receivable has a balance of $750,000; Allowance for Doubtful Accounts has a credit balance of $11,250; and net sales for the year total $4,150,000.
Assume Kinsey elects any available additional first-year depreciation. The maximum depreciation allowed for 2019 is and for 2020 is
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2014 sales forecast is as follows. Quarter HD-240 1 5,500 2 7,330 3 8,470 4 10,330 The January 1, 2014, inventory of HD-240 is 2,200 units. Sales in the first quarter ..
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