Macgiver brass is a brass plating firm with sales of 8

Assignment Help Accounting Basics
Reference no: EM13454402

MacGiver Brass is a brass plating firm with sales of $8 million and profits before taxes of $625,000. MacGiver has a loan outstanding at its local bank for working capital purposes. As the loan officer reviewing MacGiver's loan application, you are charged with making a recommendation as to whether the $608,000 loan should be renewed for another year. Upon reviewing MacGiver's most recent annual report, you find the following footnote: Under-absorbed overhead of $462,000 was prorated to inventories (2/3) and cost of goods sold (1/3). Required: a. How should you evaluate MacGiver's annual report in light of this footnote? In particular, how does this footnote affect your recommendation regarding the loan? b. In preparing for your meeting with MacGiver's president and chief financial officer, what questions do you want to ask regarding this footnote?

Reference no: EM13454402

Questions Cloud

When he receives a customers cheque for less than the full : advanced radio repairs make all sales on account. cash receipts arrive by mail. james opens the envelopes and separates
Is a wap required for all tsdfs which agency must approve : 1.is a wap required for all tsdfs? which agency must approve the wap as part of the permit application? what are the
What was the total financial and social impact of the 2008 : what was the total financial and social impact of the 2008 ice storm on eastern canada and north eastern united
Estimate the amount of the unadjusted cash balance per : the following data apply to superior auto supply inc. for may 2012.1.balance per the bank on may 31 8000.2.deposits in
Macgiver brass is a brass plating firm with sales of 8 : macgiver brass is a brass plating firm with sales of 8 million and profits before taxes of 625000. macgiver has a loan
The half-life of carbon 14 is 5700 years this is commonly : the half-life of carbon 14 is 5700 years. this is commonly used to date cultural artifacts such as fire pits eaten
What kind of organism is a sponge animal or plant any : a sponge is an animal with three different types of cells. it is an aquatic invertebrate that has no true tissues or
Explain how you impact environment do you think you impact : describe your final carbon footprint. classify where most of the carbon you generate comes from. considering all you
The case of the oily rags outside of the citys fleet : the case scenario assignments for this class will be found in unit iv scenarios 1 and 2 and unit viii scenarios 3 and

Reviews

Write a Review

Accounting Basics Questions & Answers

  Corporate and partnership forms of organization

What is the difference in the percentage of the firm's pre-tax income that investors actually receive and can spend under the corporate and partnership forms of organization?

  Amount report as extraordinary losses

Fleming Company has the following items: write-down of inventories, $240,000; loss on disposal of Sports Division, $370,000; and loss due to an expropriation, $226,000. Ignoring income taxes, what total amount should Fleming Company report as extr..

  Determining the relevant cost

The resale value of the existing stock of the material is 5.45 per liter. New stocks of the material can be readily purchased for 6.20 per liter. What is the relevant cost of the 880 liters of the raw material when deciding how much to bid on the ..

  Balance sheet of a manufacturing company

Which one of the following does not appear on the balance sheet of a manufacturing company?

  Net operating income evaluation

The marketing manager has recommended that the selling price be increased by 25%, with an expected decrease of only 8% in unit sales. What would be the company's net operating income if the marketing manager's recommendation is adopted?

  Alternative minimum taxable income

Tanver Corporation, a calendar year corporation, has alternative minimum taxable income of $7 million in 2010 (before adjustment for adjusted current earnings). If Tanver's adjusted current earnings is $16 million, its tentative minimum tax for 20..

  South western federal taxation exercises

Discuss the key factors that should be considered when determining whether an item should be expensed. Speculate how Joe Carter arrived at his decision to expense the carpets replaced in the apartments.

  Automating the insertion process

A manual insertion process takes 30 minutes and eight pounds of material to produce a product. Automating the insertion process requires 15 minutes of machine time and 7.5 pounds of material.

  Olds company declares chapter 7 bankruptcy the following

olds company declares chapter 7 bankruptcy. the following are the asset and liability book values at that time

  What are the retained earnings

Rockwell Corporation had a net income of $150,000 for the year ending 2009. The company decided to payout 40% of earnings per share as a dividend. Rockwell has 120,000 shares issued and outstanding. What are the retained earnings for the 2009?

  Local currency of the foreign subsidiary

When the local currency of the foreign subsidiary is the functional currency, a foreign subsidiary's inventory carried at cost would be converted to U.S. dollars by:

  Revenue to cover the fraud

You are told that a company has a 20% profit margin and the discovered fraud has caused $1,400,000 more needed revenue to cover the fraud. How much was stolen? A. $280,000. B. $560,000. C. $1,400,000. D. $7,000,000. E. Some other amount.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd