Questions from General Accounting


Q: A company that manufactures recreational pedal boats has approached Mike Cichanowski to

A company that manufactures recreational pedal boats has approached Mike Cichanowski to ask if he would be interested in using Current Designs’ rotomold expertise and equipment to pr...

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Q: Luang Company is considering the purchase of a new machine. Its

Luang Company is considering the purchase of a new machine. Its invoice price is $122,000, freight charges are estimated to be $3,000, and installation costs are expected to be $5,000. Salvage value o...

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Q: Hawke Skateboards is considering building a new plant. Bob Skerritt,

Hawke Skateboards is considering building a new plant. Bob Skerritt, the company’s marketing manager, is an enthusiastic supporter of the new plant. Lucy Liu, the companyâ€...

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Q: Tecumseh Products Company has its headquarters in Tecumseh, Michigan. It

Tecumseh Products Company has its headquarters in Tecumseh, Michigan. It describes itself as “a global multinational corporation producing mechanical and electrical components essential to industries...

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Q: Campbell Soup Company is an international provider of soup products. Management

Campbell Soup Company is an international provider of soup products. Management is very interested in continuing to grow the company in its core business, while “spinning off” those businesses that ar...

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Q: ShurShot Sports Inc. manufactures basketballs for the National Basketball Association (

ShurShot Sports Inc. manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2014, the company reported the following operating results while operating at 80%...

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Q: The management of Shatner Manufacturing Company is trying to decide whether to

The management of Shatner Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called CISCO, is a component of the compan...

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Q: Marsh Industries had sales in 2013 of $6,400,

Marsh Industries had sales in 2013 of $6,400,000 and gross profit of $1,100,000. Management is considering two alternative budget plans to increase its gross profit in 2014. Plan A would increase the...

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Q: Presented below is information related to the Southern Division of Lumber,

Presented below is information related to the Southern Division of Lumber, Inc. Contribution margin …………………………………………. $1,200,000 Controllable margin ……………………………………………$ 800,000 Average operating asset...

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Q: Last year (2013), Richter Condos installed a mechanized elevator for

Last year (2013), Richter Condos installed a mechanized elevator for its tenants. The owner of the company, Ron Richter, recently returned from an industry equipment exhibition where he watched a comp...

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