Question: Develop an opportunity loss table for the

> Livesey Company has signed a long-term contract to build a new basketball arena. The total revenue related to the contract is $120 million. Estimated costs for building the arena are $40 million in the first year and $30 million in both the second and th

> Describe the immediate recognition approach for unrecognized actuarial gains and losses.

> Morlan Corporation is preparing its December 31, 2012, financial statements. Two events that occurred between December 31, 2012, and March 10, 2013, when the statements were authorized for issue, are described below. 1. A liability, estimated at $160,000

> On January 1, 2012, Adams Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Adams to make annual payments of $9,968 at the beginning of each year, starting January 1, 2012. The machine has an estimated usefu

> The asset-liability approach for recording deferred income taxes is an integral part of generally accepted accounting principles. Instructions (a) Indicate whether each of the following independent situations should be treated as a temporary difference

> Ashley Company is a young and growing producer of electronic measuring instruments and technical equipment. You have been retained by Ashley to advise it in the preparation of a statement of cash flows using the indirect method. For the fiscal year ended

> Listed below and on the next page are three independent, unrelated sets of facts relating to accounting changes. Situation 1 Sanford Company is in the process of having its first audit. The company has used the cash basis of accounting for revenue recog

> On January 1, Santiago Company, a lessee, entered into three noncancelable leases for brand-new equipment, Lease L, Lease M, and Lease N. None of the three leases transfers ownership of the equipment to Santiago at the end of the lease term. For each of

> On March 1, 2012, Chance Company entered into a contract to build an apartment building. It is estimated that the building will cost $2,000,000 and will take 3 years to complete. The contract price was $3,000,000. The following information pertains to th

> Penn Company is in the process of adjusting and correcting its books at the end of 2012. In reviewing its records, the following information is compiled. 1. Penn has failed to accrue sales commissions payable at the end of each of the last 2 years, as fo

> Bradburn Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Bradburn and is its current president. The company has been successful, but it current

> Mortonson Company has not yet prepared a formal statement of cash flows for the 2012 fiscal year. Comparative balance sheets as of December 31, 2011 and 2012, and a statement of income and retained earnings for the year ended December 31, 2012, are prese

> The following information has been obtained for the Gocker Corporation. 1. Prior to 2012, taxable income and pretax financial income were identical. 2. Pretax financial income is $1,700,000 in 2012 and $1,400,000 in 2013. 3. On January 1, 2012, equipment

> Brennan Corporation began 2012 with a $90,000 balance in the Deferred Tax Liability account. At the end of 2012, the related cumulative temporary difference amounts to $350,000, and it will reverse evenly over the next 2 years. Pretax accounting income f

> The following information is available for the pension plan of Radcliffe Company for the year 2012. Actual and expected return on plan assets ………………………….……………………. $ 15,000 Benefits paid to retirees …………………………………………………………………………….. 40,000 Contributions (fu

> LaGreca Company is involved in four separate industries. The following information is available for each of the four industries. Instructions Determine which of the operating segments are reportable based on the: (a) Revenue test. (b) Operating profit

> Ramirez Co. decides at the beginning of 2012 to adopt the FIFO method of inventory valuation. Ramirez had used the LIFO method for financial reporting since its inception on January 1, 2010, and had maintained records adequate to apply the FIFO method re

> Assume that on January 1, 2012, Kimberly-Clark Corp. signs a 10-year noncancelable lease agreement to lease a storage building from Trevino Storage Company. The following information pertains to this lease agreement. 1. The agreement requires equal renta

> Using the information in E20-2, prepare a pension worksheet inserting January 1, 2012, balances, showing December 31, 2012, balances, and the journal entry recording pension expense. In E20-2 Veldre Company provides the following information about its d

> The income statement of Rodriquez Company is shown below. Additional information: 1. Accounts receivable decreased $310,000 during the year. 2. Prepaid expenses increased $170,000 during the year. 3. Accounts payable to suppliers of merchandise decreas

> At January 1, 2012, Beaty Company had plan assets of $280,000 and a projected benefit obligation of the same amount. During 2012, service cost was $27,500, the settlement rate was 10%, actual and expected return on plan assets were $25,000, contributions

> Morlan Corporation is preparing its December 31, 2012, financial statements. Two events that occurred between December 31, 2012, and March 10, 2013, when the statements were issued, are described below. 1. A liability, estimated at $160,000 at December 3

> Using the information from BE19-2, assume this is the only difference between Oxford’s pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable, and show how t

> What is the revenue recognition principle?

> Identify the two recognized lease-accounting methods for lessees and distinguish between them.

> Manual Company sells goods to Nolan Company during 2012. It offers Nolan the following rebates based on total sales to Nolan. If total sales to Nolan are 10,000 units, it will grant a rebate of 2%. If it sells up to 20,000 units, it will grant a rebate o

> How should cash flows from purchases, sales, and maturities of available-for-sale securities be classified and reported in the statement of cash flows?

> What are the quantitative thresholds that would require a public company to report separately information about an operating segment?

> What reporting requirements does retrospective application require?

> What information should a lessee disclose about its capital leases in its financial statements and footnotes?

> If an employer has a defined benefit pension plan, what components would make up its net periodic pension cost?

> A company wishes to conduct business in a foreign country that attracts businesses by granting “holidays” from income taxes for a certain period of time. Would the company have to disclose this “holiday” to the SEC? If so, what information must be disclo

> Is the installment-sales method of recognizing revenue generally acceptable? Why or why not?

> IFRS prohibits the use of the completed-contract method in accounting for long-term contracts. If revenues and costs are difficult to estimate, how must companies account for long-term contracts?

> In this simulation, you are asked to address questions related to the accounting for leases. Prepare responses to all parts. (Round amounts to the nearest cent.) KWW_Professional_Simulation Accounting for Leases Time Remaining 1 hour 40 minutes Unap

> Wertz Construction Company decided at the beginning of 2012 to change from the completed contract method to the percentage-of-completion method for financial reporting purposes. The company will continue to use the completed-contract method for tax purpo

> Access the glossary (“Master Glossary”) to answer the following. (a) What is a deferred tax asset? (b) What is taxable income? (c) What is the definition of valuation allowance? (d) What is a deferred tax liability?

> Ray Bond, from Problem 1-16, is trying to find a new supplier that will reduce his variable cost of production to $15 per unit. If he was able to succeed in reducing this cost, what would the break-even point be? Problem 1-16: Ray Bond sells handcrafte

> Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for $50. The cost to rent a booth at the fair is $150. How many of these must Ray sell to break even?

> Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of using the equipment is $

> A card is drawn from a standard deck of playing cards. For each of the following pairs of events, indicate if the events are mutually exclusive, and indicate if the events are exhaustive. (a) Draw a spade and draw a club. (b) Draw a face card and draw a

> The Webster Manufacturing Company produces a popular type of serving cart. This product, the SL72, is made from the following parts: 1 unit of part A, 1 unit of part B, and 1 unit of subassembly C. Each subassembly C is made up of 2 units of part D, 4 un

> Jerry Smith is thinking about opening a bicycle shop in his hometown. Jerry loves to take his own bike on 50-mile trips with his friends, but he believes that any small business should be started only if there is a good chance of making a profit. Jerry c

> A group of medical professionals is considering the construction of a private clinic. If the medical demand is high (i.e., there is a favorable market for the clinic), the physicians could realize a net profit of $100,000. If the market is not favorable,

> Refer to Problem 3-33 for details about the game of roulette. Another bet in a roulette game is called a “straight up” bet, which means that the player is betting that the winning number will be the number that she chose. In a game with 0 and 00, there i

> Megley Cheese Company is a small manufacturer of several different cheese products. One of the products is a cheese spread that is sold to retail outlets. Jason Megley must decide how many cases of cheese spread to manufacture each month. The probability

> Today’s Electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Phyllis Weinberger, who is responsible for advising the president of Today’s Ele

> What is the variance, and what does it measure? How is it computed for a discrete probability distribution?

> Allen Young has always been proud of his personal investment strategies and has done very well over the past several years. He invests primarily in the stock market. Over the past several months, however, Allen has become very concerned about the stock m

> Kenneth Brown is the principal owner of Brown Oil, Inc. After quitting his university teaching job, Ken has been able to increase his annual salary by a factor of over 100. At the present time, Ken is forced to consider purchasing some more equipment for

> The computer output given below is for Problem 7-31. Use this to answer the following questions. Problem 7-31: Consider the following LP problem: Maximize profit = 5X + 6 Y subject to 2X + Y ≤ 120 2X + 3Y ≤ 240 X, Y ≥ 0 (a) How much coul

> Teresa Granger is the manager of Chicago Cheese, which produces cheese spreads and other cheese-related products. E-Z Spread Cheese is a product that has always been popular. The probability of sales, in cases, is as follows: A case of E-Z Spread Chees

> Use the F table in Appendix D to find the value of F for the upper 1% of the F distribution with The F table in Appendix D: Continue to next page… // // (a) df1 = 15, df2 = 6 (b) df1 = 12, df2 = 8 (c) df1 = 3, df2 = 5 (d) df1 = 9, df2 =

> Use the F table in Appendix D to find the value of F for the upper 5% of the F distribution with The F table in Appendix D: Continue to next page… // // (a) df1 = 5, df2 = 10 (b) df1 = 8, df2 = 7 (c) df1 = 3, df2 = 5 (d) df1 = 10, df2 =

> Examine the LP formulation in Problem 7-29. The problem’s second constraint reads 6X + 4Y ≤ 24 hours 1time available on machine 22 If the firm decides that 36 hours of time can be made available on machine 2 (namely, an additional 12 hours) at an additio

> Georgia Products offers the following discount schedule for its 4- by 8-foot sheets of good-quality plywood: ORDER UNIT COST ($) 9 sheets or less ………………………………….. 18.00 10 to 50 sheets …………………………………… 17.50 More than 50 sheets …………………………… 17.25 Home S

> Graphically analyze the following problem: Maximize profit = $4X + $6Y subject to X + 2Y ≤ 8 hours 6X + 4Y ≤ 24 hours (a) What is the optimal solution? (b) If the first constraint is altered to X + 3Y ≤ 8, does the feasible region or optimal

> What is the expected value, and what does it measure? How is it computed for a discrete probability distribution?

> For the data in Problem 5-44, develop an exponential smoothing model with a smoothing constant of 0.3. Using the MSE, compare this with the model in Problem 5-44. Problem 5-44: The following table gives the average monthly exchange rate between the U.S.

> The following table gives the average monthly exchange rate between the U.S. dollar and the euro for 2009. It shows that 1 euro was equivalent to 1.289 U.S. dollars in January 2009. Develop a trend line that could be used to predict the exchange rate for

> Cars arrive at Carla’s Muffler Shop for repair work at an average of 3 per hour, following an exponential distribution. (a) What is the expected time between arrivals? (b) What is the variance of the time between arrivals?

> Using the data in Problem 2-43, determine the probability of more than 3 visits for emergency room service on any given day. Problem 2-43: Patients arrive at the emergency room of Costa Valley Hospital at an average of 5 per day. The demand for emergen

> Jan Gentry is the owner of a small company that produces electric scissors used to cut fabric. The annual demand is 8,000 scissors, and Jan produces the scissors in batches. On average, Jan can produce 150 scissors per day, and during the production proc

> Annual demand for the Dobbs model airplane kit is 80,000 units. Albert Dobbs, president of Dobbs’ Terrific Toys, controls one of the largest toy companies in Nevada. He estimates that the ordering cost is $40 per order. The carrying cost is $7 per unit p

> Shoe Shine is a local retail shoe store located on the north side of Centerville. Annual demand for a popular sandal is 500 pairs, and John Dirk, the owner of Shoe Shine, has been in the habit of ordering 100 pairs at a time. John estimates that the orde

> Ken Ramsing has been in the lumber business for most of his life. Ken’s biggest competitor is Pacific Woods. Through many years of experience, Ken knows that the ordering cost for an order of plywood is $25 and that the carrying cost is 25% of the unit c

> Linda Lechner is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60. Furthermore, the standard deviation for BX-5 was 7. Linda would like to maintain a 90% service level

> Barbara Bright is the purchasing agent for West Valve Company. West Valve sells industrial valves and fluid control devices. One of the most popular valves is the Western, which has an annual demand of 4,000 units. The cost of each valve is $90, and the

> John Smith has developed the following forecasting model: Ŷ = 36 + 4.3X1 where Ŷ = demand for K10 air conditioners X1 = the outside temperature (℉) (a) Forecast the demand for K10 when the temperature is 70℉. (b) What is the demand for a temperature of 8

> Jim Overstreet, inventory control manager for Itex, receives wheel bearings from Wheel-Rite, a small producer of metal parts. Unfortunately, Wheel-Rite can produce only 500 wheel bearings per day. Itex sreceives 10,000 wheel bearings from Wheel-Rite each

> Annual rainfall plays an important role in corn agriculture. The drought of 2011 literally affected corn prices for years. Given the following data, build a model and predict the harvest for 2016 given that the total rainfall was 6.45 inches. Critique yo

> Trowbridge Manufacturing produces cases for personal computers and other electronic equipment. The quality control inspector for this company believes that a particular process is out of control. Normally, only 5% of all cases are deemed defective due to

> If 10% of all disk drives produced on an assembly line are defective, what is the probability that there will be exactly one defect in a random sample of 5 of these? What is the probability that there will be no defects in a random sample of 5?

> Gary Schwartz is the top salesman for his company. Records indicate that he makes a sale on 70% of his sales calls. If he calls on four potential clients, what is the probability that he makes exactly 3 sales? What is the probability that he makes exactl

> It takes approximately eight working days for an order of number 6 screws to arrive once the order has been placed. (Refer to Problem 6-20.) The demand for number 6 screws is fairly constant, and on average, Lila has observed that her brother’s hardware

> Use a 3-year moving average forecasting model to forecast the sales of Cool-Man air conditioners (see Problem 5-22). Problem 5-22: Sales of Cool-Man air conditioners have grown steadily during the past 5 years: The sales manager had predicted, before

> Sales of Cool-Man air conditioners have grown steadily during the past 5 years: The sales manager had predicted, before the business started, that year 1’s sales would be 410 air conditioners. Using exponential smoothing with a weight

> Develop a trend line for the demand for fertilizer in Problem 5-17, using any computer software. Problem 5-17: Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table. Develop a 3-ye

> Use the data in Problem 4-22 and develop a regression model to predict selling price based on the square footage, number of bedrooms, and age. Use this to predict the selling price of a 10-year-old, 2,000-square-foot house with three bedrooms. Problem 4

> Refer to the Trowbridge Manufacturing example in Problem 2-35. The quality control inspection procedure is to select 6 items, and if there are 0 or 1 defective cases in the group of 6, the process is said to be in control. If the number of defects is mor

> Use the data in Problem 4-26 to develop a multiple linear regression model. How does this compare with each of the models in Problem 4-26? Problem 4-26: A sample of 20 automobiles was taken, and the miles per gallon (MPG), horsepower, and total weight w

> A sample of 20 automobiles was taken, and the miles per gallon (MPG), horsepower, and total weight were recorded. Develop a linear regression model to predict MPG, using horsepower as the only independent variable. Develop another model with weight as th

> Using computer software, find the least-squares regression line for the data in Problem 4-13. Based on the F test, is there a statistically significant relationship between the first test grade and the final average in the course? Problem 4-13: Students

> A couple of entrepreneurial business students at State University decided to put their education into practice by developing a tutoring company for business students. While private tutoring was offered, it was determined that group tutoring before tests

> Golden Age Retirement Planners specializes in providing financial advice for people planning for a comfortable retirement. The company offers seminars on the important topic of retirement planning. For a typical seminar, the room rental at a hotel is $1,

> Mysti Farris (see Problem 1-20) believes that there is a high probability that 120 pool cues can be sold if the selling price is appropriately set. What selling price would cause the break-even point to be 120? Problem 1-20: Farris Billiard Supply sell

> Mysti Farris (see Problem 1-20) is considering raising the selling price of each cue to $50 instead of $40. If this is done while the costs remain the same, what would the new break-even point be? What would the total revenue be at this break-even point?

> Farris Billiard Supply sells all types of billiard equipment and is considering manufacturing its own brand of pool cues. Mysti Farris, the production manager, is currently investigating the production of a standard house pool cue that should be very pop

> Katherine D’Ann, from Problem 1-18, has become concerned that sales may fall, as the team is on a terrible losing streak and attendance has fallen off. In fact, Katherine believes that she will sell only 500 programs for the next game. If it was possible

> Katherine D’Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee that is paid t

> Solve the following LP problem using the corner point graphical method. At the optimal solution, calculate the slack for each constraint: Maximize profit = 4X + 4Y subject to 3X + 5Y ≤ 150 X - 2Y ≤ 10 5X + 3Y ≤ 150 X,

> Use exponential smoothing with a smoothing constant of 0.3 to forecast the demand for fertilizer given in Problem 5-17. Assume that last period’s forecast for year 1 is 5,000 bags to begin the procedure. Would you prefer to use the expo

> In Problems 5-17 and 5-18, three different forecasts were developed for the demand for fertilizer. These three forecasts are a 3-year moving average, a weighted moving average, and a trend line. Which one would you use? Explain your answer. Problem 5-17

> Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table. Develop a 3-year moving average to forecast sales. Then estimate demand again with a weighted moving average in which sales in

> Using MAD, determine whether the forecast in Problem 5-15 or the forecast in the section concerning Wallace Garden Supply is more accurate. Problem 5-15: Develop a 4-month moving average forecast for Wallace Garden Supply, and compute the MAD. A 3-month

> Develop a 4-month moving average forecast for Wallace Garden Supply, and compute the MAD. A 3-month moving average forecast was developed in the section on moving averages in Table 5.2. Table 5.2: ΜΟΝΤΗ ACTUAL SHED SALES 3-MONTH MOVING AVERAGE Janu

> The closing stock price for each of two stocks was recorded over a 12-month period. The closing price for the Dow Jones Industrial Average (DJIA) was also recorded over this same time period. These values are shown in the following table: (a) Develop a

> The number of victories (W), earned run average (ERA), runs scored (R), batting average (AVG), and on-base percentage (OBP) for each team in the American League in the 2012 season are provided in the following table. The ERA is one measure of the effecti

> In 2012, the total payroll for the New York Yankees was almost $200 million, while the total payroll for the Oakland Athletics (a team known for using baseball analytics or saber metrics) was about $55 million, less than one-third of the Yankeesâ&#

> A sample of nine public universities and nine private universities was taken. The total cost for the year (including room and board) and the median SAT score (maximum total is 2400) at each school were recorded. It was felt that schools with higher media