On December 31, 2023, Ainsworth, Inc., had 600 million shares of common stock outstanding. Twenty million shares of 8%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2024. On April 30, 2024, Ainsworth purchased 30 million shares of its common stock as treasury stock. Twelve million treasury shares were sold on August 31. Ainsworth issued a 5% common stock dividend on June 12, 2024. No cash dividends were declared in 2024. For the year ended December 31, 2024, Ainsworth reported a net loss of $140 million, including an after-tax loss from discontinued operations of $400 million. Required: 1. Determine Ainsworth’s net loss per share for the year ended December 31, 2024. 2. Determine the per share amount of income or loss from continuing operations for the year ended December 31, 2024. 3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth’s 2024 and 2023 comparative income statements. Assume EPS was reported in 2023 as $0.75, based on net income (no discontinued operations) of $450 million and a weighted-average number of common shares of 600 million
> Portions of the financial statements for Parnell Company are provided below. Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Parnell Company using the direct method. 2. Prepare the cash flows from
> The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Microsoft Corporation. Required: Prepare the cash flows from operating activities section of the statement of cash flows (direct me
> Mondale Winery depreciates its equipment using the group method. The cost of equipment purchased in 2024 totaled $425,000. The estimated residual value of the equipment was $40,000 and the group depreciation rate was determined to be 18%. (1) What is the
> The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe Computers. Required: 1. Calculate each of the following amounts for Mike Roe Computers: a. Cash received from customers du
> Comparative balance sheets for 2024 and 2023 and a statement of income for 2024 are given below for Meta globalize Industries. Additional information from the accounting records of Meta globalize also is provided Additional information from the accountin
> The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dud’s accounting records is provided also. Additional information from the accounting rec
> The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for National Inferable Company. Additional information from NIC’s accounting records is provided also. Additional information from the
> Refer to the data provided in the P 21–11 for Arduous Company. Required: Prepare the statement of cash flows for Arduous Company. Use the T-account method to assist in your analysis.
> Refer to the data provided in the P 21–5 for Meta globalize Industries. Required: Prepare the statement of cash flows for Meta globalize Industries. Use the T-account method to assist in your analysis.
> Refer to the data provided in the P 21–4 for Dux Company. Required: Prepare the statement of cash flows for Dux Company. Use the T-account method to assist in your analysis.
> Refer to the data provided in the P 21–11 for Arduous Company. Required: Prepare the statement of cash flows for Arduous Company using the indirect method.
> Refer to the data provided in the P 21–5 for Meta globalize Industries. Required: Prepare the statement of cash flows for Meta globalize Industries using the indirect method.
> Refer to the data provided in the P 21–4 for Dux Company. Required: Prepare the statement of cash flows for Dux Company using the indirect method.
> On December 31, 2024, management of Jines Construction committed to a plan for selling an office building and its related equipment. Both are available for immediate sale. The building has a book value of $800,000 and a fair value of $900,000. The equipm
> Digital Telephony issued 10% bonds, dated January 1, with a face amount of $32 million on January 1, 2024. The bonds mature in 2034 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and D
> The comparative balance sheets for 2024 and 2023 are given below for Surmise Company. Net income for 2024 was $50 million. Required: Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2024. Use the indirect method to p
> Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2024 and 2023, and the increases or decreases in each account from 2023 to 2024. Also presented is selected income statement information for the year ended December 31, 2024
> The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Wright Company. Additional information from Wright’s accounting records is provided also. Additional information from the accounti
> At the beginning of 2024, Wagner Implements undertook a variety of changes in accounting methods, corrected several errors, and instituted new accounting policies. Required: Indicate for each item 1 to 10 below the type of change and the reporting appro
> Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2024 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 25% in all years. Any tax eff
> In 2024, the William Jesse Company purchased land containing a mineral mine for $1,600,000. Additional costs of $600,000 were incurred to develop the mine. Geologists estimated that 400,000 tons of ore would be extracted. After the ore is removed, the la
> During 2022 and 2023, Faulkner Manufacturing used the sum-of-the-years’-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes. At the beginning of 2024, Faulkner decided to change
> Fantasy Fashions had used the LIFO method of costing inventories, but at the beginning of 2024 decided to change to the FIFO method. The inventory as reported at the end of 2023 using LIFO would have been $20 million higher using FIFO. Retained earnings
> The Straws-Morris Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1985. In 2024, the company decided to change to the average cost method. Data for 2024 are as follows: Additional Informati
> On July 15, 2024, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000 and $325,000, respectively. On the date of the sale, the book value of the patent was $120,000, and the book value of the equipment was $400,000 (co
> Shown below are net income amounts as they would be determined by Roberti Steel Company by each of three different inventory costing methods ($ in thousands). Required: 1. Assume that Roberti used FIFO before 2024, and then in 2024 decided to switch to a
> The Cochin Company has used the LIFO method of accounting for inventory during its first two years of operation, 2022 and 2023. At the beginning of 2024, Cochin decided to change to the average cost method for both tax and financial reporting purposes. T
> The CARES Act allows some companies to (1) save more taxes and (2) obtain those savings faster. How does the Act enable those benefits?
> George Young Industries (GYI) acquired industrial robots at the beginning of 2022 and added them to the company’s assembly process. During 2024, management became aware that the $1 million cost of the equipment was inadvertently recorde
> What are the primary ways in which the CARES Act changed accounting for the tax effects of NOLs?
> You are internal auditor for Shannon Supplies, Inc., and are reviewing the company’s preliminary financial statements. The statements, prepared after making the adjusting entries, but before closing entries for the year ended December 3
> Conrad Playground Supply underwent a restructuring in 2024. The company conducted a thorough internal audit, during which the following facts were discovered. The audit occurred during 2024 before any adjusting entries or closing entries are prepared. a.
> Suppose the Environmental Protection Agency is in the process of investigating Ozone Ruination Limited for possible environmental damage but has not proposed a penalty as of December 31, 2020, the company’s fiscal year-end. Describe the two-step process
> Whaley Distributors is a wholesale distributor of electronic components. Financial statements for the years ended December 31, 2022 and 2023, reported the following amounts and subtotals ($ in millions): In 2024, the following situations occurred or came
> What transactions are included in income from continuing operations? Briefly explain why it is important to segregate income from continuing operations from other transactions affecting net income.
> Funseth Farms Inc. purchased a tractor in 2021 at a cost of $30,000. The tractor was sold for $3,000 in 2024. Depreciation recorded through the disposal date totaled $26,000. (1) Prepare the journal entry to record the sale. (2) Now assume the tractor wa
> Williams-Santana Inc. is a manufacturer of high-tech industrial parts that was started in 2009 by two talented engineers with little business training. In 2024, the company was acquired by one of its major customers. As part of an internal audit, the fol
> What are the three main types of sustainability disclosures? How can those disclosures provide information to shareholders and stakeholders?
> Williams-Santana Inc. is a manufacturer of high-tech industrial parts that was started in 2012 by two talented engineers with little business training. In 2024, the company was acquired by one of its major customers. As part of an internal audit, the fol
> How does IFRS differ from current U.S. GAAP with respect to accounting for impairments?
> The Collins Corporation purchased office equipment at the beginning of 2022 and capitalized a cost of $2,000,000. This cost included the following expenditures: The company estimated an eight-year useful life for the equipment. No residual value is antic
> Answer Q 12–26 but assume that the investment is classified as AFS.
> You have been hired as the new controller for the Ralston Company. Shortly after joining the company in 2024, you discover the following errors related to the 2022 and 2023 financial statements: a. Inventory at 12/31/2022 was understated by $6,000. b. In
> When market rates of interest rise after a fixed-rate security is purchased, the value of the now-below-market, fixed-interest payments declines, so the market value of the investment falls. How would that drop in fair value be reflected in the investmen
> The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2024. At December 31, 2023, inventories were $120,000 (average cost basis) and were $124,000 a year earlier.
> Northwest Carburetor Company established a fund in 2021 to accumulate money for a new plant scheduled for construction in 2024. How should this special purpose fund be reported in Northwest’s balance sheet?
> Refer to the situation described in BE 11–2. Calculate depreciation expense for 2024 and 2025 using sum-of-theyears’- digits, assuming the equipment was purchased on (1) January 1, 2024, and (2) March 31, 2024.
> Comparative Statements of Retained Earnings for Renderer Corporation were reported as follows for the fiscal years ending December 31, 2022, 2023, and 2024. No preferred stock or potential common shares were outstanding during any of the periods shown.
> Superior Company owns 40% of the outstanding stock of Bernard Company. During 2024, Bernard paid a $100,000 cash dividend on its common shares. What effect did this dividend have on Superior’s 2024 financial statements?
> LCI Cable Company grants 1 million performance stock options to key executives at January 1, 2024. The options entitle executives to receive 1 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four
> If merchandise inventory is understated at the end of 2023, and the error is not discovered, how will net income be affected in 2024?
> JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL granted options to key officers on January 1, 2024. The options permit
> Southeast Steel, Inc., changed from the FIFO inventory costing method to the LIFO method during 2024. How would this change likely be reported in the 2024 comparative financial statements?
> Walters Audio Visual, Inc., offers a stock option plan to its regional managers. On January 1, 2024, 40 million options were granted for 40 million $1 par common shares. The exercise price is the market price on the grant date, $8 per share. Options cann
> Sugar baker Designs Inc. changed from the FIFO inventory costing method to the average cost method during 2024. Which items from the 2023 financial statements should be restated on the basis of the average cost method when reported in the 2024 comparativ
> Refer to the situation described in P 19–2. Assume Partner prepares its financial statements using International Financial Reporting Standards (IFRS). Required: Determine the compensation expense related to the options to be recorded each year, 2024–202
> Refer to the situation described in BE 11–2. Assume the equipment was purchased on March 31, 2024, instead of January 1. Calculate depreciation expense for 2024 and 2025 using each of the following depreciation methods: (1) straight line, (2) double-decl
> Refer to the situation described in P 19–2. Assume Partner measures the fair value of all options on January 1, 2024, to be $4.50 per option using a single weighted-average expected life of the options assumption. Required: 1. Determine the compensation
> Partner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2024, the company issued 400,000 executive stock options permitting executives to buy 400,000 shares of Partner stock f
> Witter House is a calendar-year firm with 300 million common shares outstanding throughout 2024 and 2025. As part of its executive compensation plan, at January 1, 2023, the company had issued 30 million executive stock options permitting executives to b
> At January 1, 2024, M. E. Gaynor Corporation had outstanding the following securities: The following additional information is available: ∙ On September 1, 2024, M. E. Gaynor sold 72 million additional shares of common stock. â
> On January 1, 2024, Daewoo Industries had outstanding 440,000 common shares ($l par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock ($100 par), convertible into 40,000 common shares. On October 1, 2024, Daewoo
> At December 31, 2024, the financial statements of Hollingsworth Industries included the following: Required: Compute basic and diluted EPS for the year ended December 31, 2024.
> Al capture Company reported a net income of $150,000 in 2024. The weighted-average number of common shares outstanding for 2024 was 40,000. The average stock price for 2024 was $33. Assume an income tax rate of 25%. Required: For each of the following i
> Information from the financial statements of Park-Rao Industries included the following at December 31, 2024: Park-Rao’s net income for the year ended December 31, 2024, is $520 million. The income tax rate is 25%. Park-Raoâ€
> On December 31, 2023, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400
> On December 31, 2023, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. ∙ Dow issued a 4% common stock dividend on May 15 and paid ca
> Refer to the situation described in BE 11–20. Assume that SCC’s fair value of $40 million approximates fair value less costs to sell and that the present value of SCC’s estimated future cash flows is $41 million. If Web- Helper prepares its financial sta
> On December 31, 2023, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. ∙ Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $4
> Comparative Statements of Shareholders’ Equity for Locke Inter technology Corporation were reported as follows for the fiscal years ending December 31, 2022, 2023, and 2024. Required: Infer from the statements the events and transactio
> On October 15, 2023, the board of directors of Martinez Materials Corporation approved a stock option plan for key executives. On January 1, 2024, 20 million stock options were granted, exercisable for 20 million shares of Martinez’s $1 par common stock.
> U.S. Metallurgical Inc. reported the following balances in its financial statements and disclosure notes at December 31, 2023. U.S.M.’s actuary determined that 2024 service cost is $60,000. Both the expected and actual rate of return on
> A partially completed pension spreadsheet showing the relationships among the elements that constitute Carney, Inc.’s defined benefit pension plan follows. Six years earlier, Carney revised its pension formula and recalculated benefits
> Herring Wholesale Company has a defined benefit pension plan. On January 1, 2024, the following pension related data were available The rate of return on plan assets during 2024 was 9%, although it was expected to be 10%. The actuary revised assumptions
> Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of retur
> Sachs Brands’ defined benefit pension plan specifies annual retirement benefits equal to 1.6% × service year’s ×final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2010 and is expected to retire a
> Sachs Brands’ defined benefit pension plan specifies annual retirement benefits equal to 1.6% × service year’s × final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2010 and is expected to retire
> Sachs Brands’ defined benefit pension plan specifies annual retirement benefits equal to 1.6% × service year’s × final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2010 and is expected to retire
> Refer to the situation described in BE 11–20. Assume that the fair value of SCC is $44 million instead of $40 million. What amount of impairment loss should WebHelper report in its income statement?
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2019, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available under the Investor Relations link at the company’s website (www.target.com)
> Use Solver to create Answer and Sensitivity Reports for question 17 at the end of Chapter 2 and answer the following questions: a. How much excess wiring and testing capacity exists in the optimal solution? b. What is the company’s total profit if it has
> Use the multiplicative seasonal technique for stationary data to model the data. Use Solver to determine the optimal values of a and b. a. What are the optimal values of a and b? b. Prepare a line graph comparing the predictions from this method against
> The CitruSun Corporation ships frozen orange juice concentrate from processing plants in Eustis and Clermont to distributors in Miami, Orlando, and Tallahassee. Each plant can produce 20 tons of concentrate each week. The company has just received orders
> Use the additive seasonal technique for stationary data to model the data. Use Solver to determine the optimal values of a and b. a. What are the optimal values of a and b? b. Prepare a line graph comparing the predictions from this method against the or
> Implement the following LP model in a spreadsheet. Use Solver to solve the problem and create a Sensitivity Report. Use this information to answer the following questions: a. What is the smallest value the objective function coefficient for X3 can assum
> Implement the following LP model in a spreadsheet. Use Solver to solve the problem and create a Sensitivity Report. Use this information to answer the following questions: a. Which of the constraints are binding at the optimal solution? b. Is the optima
> Consider the following constraint, where S is a slack variable: 3X1 1 4X2 2 S 5 12 a. What was the original constraint before the slack variable was included? b. What value of S is associated with each of the following points: i) X1 = 5, X2 = 0 ii) X1
> Consider the following constraint, where S is a slack variable: a. What was the original constraint before the slack variable was included? b. What value of S is associated with each of the following points: i) X1 = 2, X2 = 2 ii) X1 = 8, X2 = 0 iii) X
> Consider the following LP problem: a. Use slack variables to rewrite this problem so that all its constraints are equal-to constraints. b. Identify the different sets of basic variables that might be used to obtain a solution to the problem. c. Of the p
> Implement the following LP problem in a spreadsheet. Use Solver to solve the problem and create a Sensitivity Report. Use this information to answer the following questions: a. What range of values can the objective function coefficient for variable X1
> Computers and word processors notwithstanding, the art of writing by hand recently entered a boom era. People are buying fountain pens again, and mechanical pencils are becoming more popular than ever. Joe Script, the president and CEO of Parket Sisters,
> Consider the following LP problem: a. Use slack variables to rewrite this problem so that all its constraints are equal-to constraints. b. Identify the different sets of basic variables that might be used to obtain a solution to the problem. c. Of the p
> Consider the following LP problem: MAX: 4X1 1 2X2 Subject to: 2X1 1 4X2 # 20 3X1 1 5X2 # 15 X1, X2 $ 0 a. Use slack variables to rewrite this problem so that all its constraints are equal-to constraints. b. Identify the different sets of basic variable
> Refer to question 42 at the end of Chapter 3 and answer the following questions: a. Create a Spider Plot to summarize what happens to the optimal total profit as the total storage capacity increases from 300,000 cf to 400,000 cf in 10,000 cf increments.
> Use Solver to create a Sensitivity Report for question 37 at the end of Chapter 3 and answer the following questions. a. Is the solution degenerate? b. Is the solution unique? c. How much can the profit per ton on commodity one decrease before the optima
> Use Solver to create a Sensitivity Report for question 35 at the end of Chapter 3 and answer the following questions. a. Is the solution degenerate? b. Is the solution unique? c. How much should the recycler be willing to pay to acquire more cardboard? d
> CaroliNet is a satellite TV service provider for residential customers in the state of North Carolina. The company is planning to expand and offer satellite TV service in South Carolina as well. The company wants to establish a set of service hubs throug
> Use Solver to create a Sensitivity Report for question 34 at the end of Chapter 3 and answer the following questions: a. Is the solution unique? b. If Sentry wants to increase their production capacity in order to meet more of the demand for their produc
> The Embassy Lodge hotel chain wants to compare its brand efficiency to that of its major competitors using DEA. Embassy collected the following data reported in industry trade publications. Embassy views customers’ perceptions of satisf
