[SOLVED] Assume McCormack Tire, Inc., completed the

> Let’s think about Dick’s Sporting Goods (Dick’s) again. Think about accountants reporting what Dick’s has, where Dick’s got its money, and what Dick’s has been doing to create value. Is Dick’s earning net income or loss? What resources did Dick’s need to

> At the end of 2018, Zepher Corp. had total assets of $331,500 and total liabilities of $164,300. Included in the assets were property, plant, and equipment with a cost of $237,600, and accumulated depreciation of $114,800. Also included in the assets wer

> Mesa Transport is a large trucking company. Mesa Transport uses the units of production (UOP) method to depreciate its trucks. In 2015, Mesa Transport acquired a Mack truck costing $330,000, with a useful life of 10 years or 900,000 miles. Estimated resi

> Assume that Branson Corporationâs comparative balance sheet reported these amounts: Requirement 1. Assume that on January 1, 2018, Branson sold one-eighth of its plant and equipment for $60,500 cash. Journalize this transaction for Br

> On January 2, 2018, Trendz Lighting purchased showroom fixtures for $20,000 cash, expecting the fixtures to remain in service for four years. Trendz Lighting has depreciated the fixtures on a straight-line basis, with zero residual value. On March 31, 20

> Cool Rays Tanning Salon bought three tanning beds in a $15,000 lump-sum purchase. An independent appraiser valued the tanning beds: Tanning Bed ………………………… Appraised Value 1 …………………………………………………….. $ 3,900 2 ………………………………………………………… 5,400 3 …………………………………………

> Rodriguez Transfer manufactures conveyor belts. Early in the month of July, Rodriguez Transfer constructed its own building at a cost of $980,000 (for materials, labor, and overhead). Rodriguez Transfer paid cash for the construction costs. Rodriguez Tra

> The following are selected data for Simpson Equipment, Inc., for the current year: Sales ............................................................................ $782,000 Net income …..................................................................

> At the end of 2018, Crawford Corp. had total assets of $321,800 and total liabilities of $183,400. Included in the assets were property, plant, and equipment, with a cost of $242,000, and accumulated depreciation of $116,000. Also included in the assets

> Rabito Corp. aggressively acquires other companies. Assume that Rabito Corp. purchased Loring, Inc., for $1,500,000 cash. The market value of Loring’s assets is $2,200,000, and it has liabilities with a market value of $825,000. Requirements 1. Compute

> Part 1. Morris Printing manufactures high-speed printers. Morris Printing recently paid $300,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only eigh

> Let’s look at Dick’s Sporting Goods (Dick’s), the largest retailer of sporting goods in the United States. Think about Dick’s, all its stakeholders, what products it sells, and how and where it sells its products. Think about all the employees who work f

> Assume that Hart Corporationâs comparative balance sheet reported these amounts: Requirement 1. Assume that on January 1, 2018, Hart sold one-tenth of its plant and equipment for $56,000 cash. Journalize this transaction for Hart.

> On January 2, 2018, Evergreen Lighting purchased showroom fixtures for $18,000 cash, expecting the fixtures to remain in service for 5 years. Evergreen Lighting has depreciated the fixtures on a straight-line basis, with zero residual value. On August 2,

> Westwood Tanning Salon bought three tanning beds in a $19,000 lump-sum purchase. An independent appraiser valued the tanning beds as follows: Tanning Bed ………………… Appraised Value 1 …………………………………………….… $6,300 2 …..………………………………………….… 5,250 3 …..……………………………

> Whelan Transfer manufactures conveyor belts. Early in August 2018, Whelan Transfer constructed its own building at a cost of $910,000 (for materials, labor, and overhead). Whelan Transfer paid cash for the construction costs. Whelan Transfer also paid $7

> Mackay Industries, Inc., purchased land, paying $80,000 cash as a down payment and signing a $160,000 note payable for the balance. In addition, Mackay Industries, Inc., paid delinquent property tax of $4,300, title insurance costing $3,100, and a $7,800

> Tri-State Equipment reported the following items on July 31, 2018 (last yearâs amounts are also given as needed): Requirements 1. Compute Tri-State Equipmentâs (a) quick ratio, (b) current ratio, and (c) accounts rec

> Consider the following data: Requirements 1. Calculate the quick assets and the quick ratio for each company. 2. Calculate the current ratio for each company. 3. Which company should be concerned about its liquidity?

> Jitterz Coffee Supply, Inc., sells on account. When a customer account becomes four months old, Jitterz Coffee Supply, Inc., converts the account to a note receivable. During 2018, Jitterz Coffee Supply completed these transactions: Requirement 1. Reco

> Journalize the following transactions of Cramer Art Supply, Inc., which ends its accounting year on September 30:

> On July 31, 2018, Virginia State Bank loaned $175,000 to Swanson Paint, Inc., on a one-year, 7 percent note. Requirements 1. Compute the interest on the note for the years ended December 31, 2018, and December 31, 2019. Round interest calculations to th

> Let’s examine Dick’s Sporting Goods (Dick’s) again. Think about Dick’s. What liabilities might Dick’s need to finance its operations? Return to Dick’s Annual Report and look at the financial statements (see the Continuing Financial Statement Analysis Pro

> Inland Paving, Inc., uses the allowance method to account for uncollectible accounts. On December 31, 2018, Allowance for Uncollectible Accounts has a $725 credit balance. Journalize the year-end adjusting entry for uncollectible accounts assuming the fo

> On March 31, 2018, the Accounts Receivable balance of Dunham Manufacturing, Inc., is $173,000. The Allowance for Uncollectible Accounts has a $1,650 credit balance. Dunham Manufacturing, Inc., prepares the following aging schedule for its accounts recei

> Beckett Appliance Repair, Inc., ended December 2017 with Accounts Receivable of $2,400 and a debit balance of $175 in Allowance for Uncollectible Accounts. During January 2018, Beckett Appliance Repair, Inc., completed the following transactions: Requi

> Advantage Electronics, Inc., uses the direct write-off method to account for bad debts. Record the following transactions that occurred during the year:

> Information from Greyâs Photography, Inc., Cash account as well as the July bank statement are presented next. Check 210 was written for $500 to pay salaries expense. Requirements 1. Prepare the bank reconciliation on July 31. 2. Pr

> Caseyâs Construction, Inc.âs checkbook lists the following: Caseyâs Construction, Inc.âs September bank statement shows the following: Requirements 1. Prepare Caseyâ&

> Calculate the answers for the missing data:

> Lakota Equipment reported the following items on December 31, 2018 (last yearâs amounts are also given as needed): Requirements 1. Compute Lakota Equipmentâs (a) quick ratio, (b) current ratio, and (c) accounts recei

> Consider the following data: Requirements 1. Calculate the quick assets and the quick ratio for each company (round your final answers to two decimal places). 2. Calculate the current ratio for each company (round your final answers to two decimal plac

> Valley Hardware Supply, Inc., sells on account. When a customer account becomes four months old, Valley Hardware Supply converts the account to a note receivable. During 2018, Valley Hardware Supply completed these transactions: Requirement 1. Record t

> Let’s look at Dick’s Sporting Goods (Dick’s) some more. Think about Dick’s. What assets did Dick’s need to operate? Return to Dick’s Annual Report (see the Continuing Financial Statement Analysis Problem in Chapter 2 for instructions on how to access the

> Journalize the following transactions of Lawn Pro, Inc., which ends its accounting year on September 30:

> On April 30, 2018, Seattle First National Bank loaned $100,000 to Pugliese Produce, Inc., on a one-year, 8 percent note. Requirements 1. Compute the interest on the note for the years ended December 31, 2018, and December 31, 2019. Round interest calcul

> River City Supply, Inc., uses the allowance method to account for uncollectible accounts. On December 31, 2018, Allowance for Uncollectible Accounts has a $375 credit balance. Journalize the year-end adjusting entry for uncollectible accounts, assuming t

> On December 31, 2018, the Accounts Receivable balance of TDS Distribution, Inc., is $194,000. The Allowance for Uncollectible Accounts has a $1,200 credit balance. TDS Distribution, Inc., prepares the following aging schedule for its accounts receivable:

> DJâs Auto Repair, Inc., ended December 2017 with Accounts Receivable of $8,500 and a credit balance of $275 in Allowance for Uncollectible Accounts. During January 2018, DJâs Auto Repair, Inc., completed the following

> Ellison Heating and Air Conditioning, Inc., uses the direct write-off method to account for bad debts. Record the following transactions that occurred during the year:

> Information from DT Photographyâs Cash account as well as the January bank statement are presented next. Check 210 was written for $310 to pay salaries expense. Requirements 1. Prepare the bank reconciliation on January 31. 2. Prepa

> Cryerâs Produce, Inc.âs checkbook lists the following: Cryersâs Produce, Inc.âs November bank statement shows the following: Requirements 1. Prepare Cryerâs Pro

> Calculate the answers for the missing data:

> Juliaâs Jungle, Inc., has the following information as of August 31, 2018: Requirements 1. Compute the rate of inventory turnover for Juliaâs Jungle, Inc., for the year ended August 31, 2018. Round the result to two

> Let’s continue our examination of Dick’s Sporting Goods (Dick’s). Return to Dick’s Annual Report (see the Continuing Financial Statement Analysis Problem in Chapter 2 for instructions on how to access the Annual Report). Now answer the following question

> Tune Time, Inc., sells and installs audio equipment. Tune Time, Inc.’s entire inventory was destroyed during a recent fire that occurred at its warehouse. Tune Time, Inc.’s accounting records reflect the following information: Beginning Inventory ………………

> Jacobâs Upholstery, Inc., reported the following comparative income statements for the years ended September 30, 2018, and September 30, 2017. During 2018, Jacobâs Upholstery, Inc., discovered that the 2017 ending in

> Parts Plus, Inc., had the following FIFO perpetual inventory record for one of its inventory items at September 30, the end of the fiscal year. A physical count of the inventory performed at yearâs end revealed $83.25 (nine items) of

> Eagle Resources, Inc., has the following account balances at October 31, 2018. The inventory balance was determined using FIFO. Eagle Resources, Inc., has determined that the replacement cost (current market value) of the October 31, 2018, ending inven

> Refer to the data for The Bike Hub, Inc., in E5-31B. Requirements 1. Compute the cost of ending inventory under FIFO. 2. Compute the cost of ending inventory under LIFO. 3. Which method results in a higher cost of ending inventory? E5-31B: Assume The B

> Assume The Bike Hub, Inc., bought and sold a line of comfort bikes during July as follows: The Bike Hub, Inc., uses a perpetual inventory system. Requirements 1. Compute the cost of goods sold under FIFO. 2. Compute the cost of goods sold under LIFO.

> Refer to the data for E5-28B. However, instead of the FIFO method, assume Tee Time, Inc., uses the average cost method. Requirements 1. Prepare a perpetual inventory record for the putters on the average cost basis to determine the cost of ending invent

> Refer to the data for E5-28B. However, instead of the FIFO method, assume Tee Time, Inc., uses the LIFO method. Requirements 1. Prepare a perpetual inventory record for the putters on the LIFO basis to determine the cost of ending inventory and cost of

> Tee Time, Inc., carries a line of monogrammed putters. Tee Time uses the FIFO method and a perpetual inventory system. The sale price of each putter is $170. Company records indicate the following activity for putters for the month of January: Requirem

> Let’s resume our examination of Dick’s Sporting Goods (Dick’s). Return to Dick’s Annual Report (see the Continuing Financial Statement Analysis Problem in Chapter 2 for instructions on how to access the Annual Report). Now answer the following questions:

> Brava Landscaping, Inc., completed the following transactions during its first month of operations for January 2018: a. Gabrielle Brava invested $8,500 cash and a truck valued at $16,000 to start Brava Landscaping, Inc.; the business issued common stock

> The price of a car you want is $42,000 today. Its price is expected to increase by $1000 each year. You now have $25,000 in an investment account, which is earning 10% per year. How many years will it be before you have enough to buy the car without borr

> The PW of five independent projects have been calculated at an MARR of 12% per year. Select the best combination at a capital investment limit of (a) $25,000, (b) $49,000, and (c) unlimited.

> The chief engineer at Clean Water Engineering has established a capital investment limit of $710,000 for next year for projects related to concentrate management. (a) Select any or all of the following independent projects, using a MARR of 10% per year.

> Dwayne has four independent vendor proposals to contract the nationwide oil recycling services for the Ford Corporation manufacturing plants. All combinations are acceptable, except that vendors B and C cannot both be chosen. Revenue sharing of recycled

> A financial services consulting company bought an office building for $900,000. The company has 10 professional staff members. Monthly expenses for salaries, utilities, grounds maintenance, etc. are $1.1 million. The average billing rate per professional

> Feng Seawater Desalination Systems has established a capital investment limit of $800,000 for next year for projects that target improved recovery of highly brackish groundwater. All projects have a 4-year life and the MARR is 10% per year. (a) Select a

> Determine which of the following independent projects should be selected for investment if a maximum of $240,000 is available and the MARR is 10% per year. Use the PW method to evaluate mutually exclusive bundles to perform your analysis.

> If the market interest rate is 12% per year and the inflation rate is 5% per year, the number of future dollars in year 7 that will be equivalent to $2000 now is best represented by the equation: (a) Future dollar amount = 2000(1 + 0.198)7 (b) Future dol

> The cost of a well-equipped F-150 truck was $29,350 three years ago. If the cost increased only by the inflation rate and the price today is $33,015, the inflation rate over the 3-year period was closest to: (a) 3% (b) 4% (c) 5% (d) 6%

> When the market interest rate is less than the real interest rate, then: (a) The inflated interest rate is higher than the real interest rate (b) The real interest rate is zero (c) A deflationary condition exists (d) An inflationary condition exists

> At what electricity cost would the following alternatives just break even? (a) Alternatives 1 and 2, (b) alternatives 1 and 3, (c) alternatives 1 and 4.

> In order to convert inflated dollars into constant value dollars, it is necessary to: (a) Divide by (1 + if )n (b) Divide by (1 + f )n (c) Divide by (1 + i)n (d) Multiply by (1 + f )n

> When all future cash flows are expressed in then current dollars, the rate that should be used to find the present worth is the: (a) Real MARR (b) Inflation rate (c) Inflated interest rate (d) Real interest rate

> For a real interest rate of 12% per year and an inflation rate of 7% per year, the market interest rate per year is closest to: (a) 5.7% (b) 7% (c) 12% (d) 19.8%

> Assume you save $6000 each year starting this year until your planned retirement 40 years from now. The buying power of the money in terms of today’s dollars at the market interest rate of 10% per year and inflation rate of 5% per year is closest to: (a)

> An industrial robot with a controller, teach pendants, and job-specific peripherals has an initial cost of $85,000 now, and the future cost will increase exactly by the inflation rate. The cost of a similar robot 3 years from now at a market interest rat

> For a real interest rate of 1% per month and an inflation rate of 1% per month, the nominal inflated interest rate per year is closest to: (a) 1% (b) 2% (c) 24% (d) 24.12%

> You expect to receive an inheritance of $50,000 six years from now. Its present worth at a real interest rate of 4% per year and an inflation rate of 3% per year is closest to: (a) $27,600 (b) $29,800 (c) $33,100 (d) $50,000

> An investment of $1000 was made 25 years ago. The amount available 10 years from now at the market interest rate of 5% per year and an inflation rate of 2% per year is closest to: (a) $3085 (b) $5430 (c) $5515 (d) $35,000

> Two methods to control newly discovered poisonous weeds in bar-ditches on the sides of county roads in New Farmendale are under consideration. Method A involves use of a 20-year life lining at an initial cost of $14,000 and an annual maintenance cost of

> The cost of equipment to apply epoxy paint to a warehouse floor is $1400. Materials and supplies (masking tape, surface repair material, solvents, cleanup supplies, etc.) will cost $2.03 per ft2. Alternatively, a contractor can be hired annually to do th

> If the cost of electricity decreased to 8 ¢∕kWh, which alternative would be the most cost-effective?

> Ma Bryan sells homemade preserves. The profit relation for the following estimates at a quantity that is 10% above breakeven is closest to: Fixed cost = $500,000 per year Cost per 100 units = $200 Revenue per 100 units = $250 (a) Profit = 200(11,000) − 2

> A mixing process for laboratory-grade sodium phosphate has an estimated first cost of $320,000 with annual costs of $40,000. Income is expected to be $98,000 per year. At a MARR of 20% per year, the payback period is closest to: (a) 3 years (b) 15 years

> A wireless monitored process has fixed cost of $40,000 per year and variable cost of $30 per unit. An IoT-based process using “Internet of Things” technology has fixed costs of $80,000 per year. If the two processes break even at a production level of 40

> A jalapeno canning company is faced with a make/ buy decision. Cardboard shipping cartons can be purchased for $0.60 each or made in-house. If manufactured, two machines will be required. Machine X will cost $20,000 and have a life of 6 years with a $200

> The pieces of equipment required to place 160 cubic yards of concrete in 1 day by experienced workmen are two gasoline engine vibrators and one concrete pump. If the vibrators cost $76 per day and the concrete pump costs $580 per day, the variable cost o

> Revcon Products has two subcontractor bids to automate a composite winding process. Process A will have fixed costs of $42,000 per year and will require two workers at $80 per day each. Together, these workers can generate 100 units. Process B will have

> You saw that there was a gasoline price war going on in a small town 27 miles from where you live (54 miles round trip), so you are thinking about driving there to fill the tank in your pick-up truck, which gets 18 miles per gallon. You think it will tak

> A milling process is accomplished using either method X or Y. Method X has fixed costs of $10,000 per year with a variable cost of $50 per unit. Method Y is an automated process with a fixed cost of $5,000 per year and a variable cost of only $30 per uni

> For the following two AW relations, the breakeven point QBE in miles per year is closest to: AW1 =−23,000(A/P,10%,10) + 4000(A/F,10%,10)− 5000 − 4X AW2 = −8,000(A/P,10%,4) − 2000 − 6X (a) 1984 (b) 1224 (c) 1090 (d) 655

> An automobile leasing company has a contract with a new car dealer to do major repairs for $720 per car. The leasing company estimates that for $400,000, it could buy equipment to service their own cars at a cost of $300 per car. If the equipment will ha

> If hardness removal were to be discontinued at the treatment plant, which alternative would be the most cost-effective?

> In linear breakeven analysis, if process A has a variable cost of $45 per unit and process B has a variable cost of $31 per unit, which alternative would be preferred if the breakeven point is 7400 units and production is expected to be 6200 units? (a) P

> The independent projects shown below are under consideration for possible implementation by Renishaw, Inc. If the companyâs MARR is 14% per year and it uses the IROR method of capital budgeting, the projects it should select under a bud

> All of the following are true when formulating mutually exclusive bundles of independent projects, except: (a) One of the bundles is the do-nothing project. (b) A bundle may consist of only one project. (c) The capital limit may be exceeded as long as it

> All of the following are correct when a capital budgeting problem is solved using the 0-1 integer linear programming model, except: (a) Partial investment in a project is acceptable. (b) The objective is to maximize the present worth of the investments.

> The National Potato Cooperative purchased a deskinning machine last year for $150,000. Revenue for the first year was $50,000. Over the total estimated life of 8 years, use a spreadsheet to estimate the remaining equivalent annual revenues (years 2 throu

> Mid-Valley Industrial Extension Service, a state-sponsored agency, provides water quality sampling services to all business and industrial firms in a 10-county region. Last month, the service purchased all necessary lab equipment for full in-house testin

> Wilson Partners manufactures thermocouples for remote temperature monitoring of electronics applications. The current system has a fixed cost of $400,000 per year and a variable cost of $10 per unit. Wilson sells the units for $14 each. A newly proposed

> A possible disadvantage of the ABC method is: (a) It does not allocate costs to the way production work occurs (b) It is more expensive to operate than a traditional allocation system (c) It does not help understand the economic impact of management deci

> If the efficiency of the sludge recirculation pump were reduced from 90% to 70%, would the net savings difference between alternatives 3 and 4 increase, decrease, or stay the same?

Question: Assume McCormack Tire, Inc., completed the