Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
T. Young, controller for Retail Industries, was reviewing production cost reports for the year. One amount in these reports continued to bother him - advertising. During the year, the company had instituted an expensive advertising campaign to sell some of its slower-moving products. It was still too early to tell whether the advertising campaign was successful. There had been much internal debate as how to report advertising cost. The vice president of finance argued that advertising costs should be reported as a cost of production,just like direct materials and direct labor. He therefore recommended that this cost be identified as manufacturing overhead and reported as part of inventory costs until sold. Others disagreed. T. Young believed that this cost should be reported as an expense of the current period, so as not to overstate net income. Others argued that it should be reported as prepaid advertising and reported as a current asset. The president finally had to decide the issue. He argued that these costs should be reported as inventory. His arguments were practical ones. He noted that the company was experiencing financial difficulty and expensing this amount in the current period might jeopardize a planned bond offering. Also, by reporting the advertising costs as inventory rather than as prepaid advertising, less attention would be directed to it by the financial community.
Instructions:
a. Who are the stakeholders in this situation?
b. What are the ethical issues involved in this situation?
c. What would you do if you were T. Young?
The tax rate is 40%. What is the initial investment outlay? Round your answer to the nearest cent.
programmed instruction pi is a method of self-paced learning managed by both the trainee and the learning system.
Swimkids is a swimsuit manufacturer. They sell swim suits at a selling price is $30 per unit. Swimkids variable costs are $18 per unit. Fixed costs are $86,500. Swimkids expects sales of $265,300 next year. What is Swimkids's margin of safety?
Calculate the amount of stocks, bonds and cash equivalents in his portfolio today.
If the operating profit is $400,000 per year, what IRR will Burger Master realize on its investment, to the nearest 0.1%?
Calculate the price, and BEY of a treasury bill which matures in 181 days, has a face value of $10,000, and is currently being quoted at a bank discount yield of 2.32%.
A 13% semiannual coupon bond matures in 6 years. The bond has a face value of $1,000 and is currently trading at $1,174. Calculate the bond's current yield and
The characteristic of B2B markets that is most opposite of B2C markets is the concept of derived and fluctuating demand.
a. What are the APRs for the three investment options? b. What are the EARs of the three investments and which investment option(s) should you choose?
What steps can you take today to improve or maintain your credit score? How might you adjust your approach when you begin working in your desired career?
What is cost of capital, and how does it relate to capital budgeting?
Draw a T-account for the extended warranty liability, record the activity disclosed above in that account, and explain how the entries represent an application of the matching principle.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd