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"Be careful with that coffee!" Your roommate is staring in disbelief at the papers in front of her. "This was my contribution to our team project," she moaned. "When you spilled your coffee, it splashed on this page. Now I can't recognize some of these numbers, and Craig has my source documents."Knowing how important this afternoon's presentation is to your roommate, you're eager to see what can be done. "Let me see that," you offer. "I think we can figure this out." The statement of cash flows and income statement are intact. The reconciliation schedule and the comparative balance sheets are coffee casualties.
Required:
1. Determine the missing amounts.
2. Reconstruct the reconciliation of net income to cash flows from operating activities (operating cash flows using the indirect method).
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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