Question: Refer to the consolidated balance sheets on

> Flagstaff Co. has actual sales for July and August and forecast sales for September, October, November, and December as follows: Actual: July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $73,500 August . . . . .

> Osage Inc. has actual sales for June and July and forecast sales for August, September, October, and November as follows: Actual: June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,150 units July . . . . . . . . . . .

> Each gallon of Old Guard, a popular aftershave lotion, requires 6 ounces of ocean scent. Budgeted production of Old Guard for the first three quarters of 2010 is: Management’s policy is to have on hand at the end of every quarter enoug

> Pelican Co. is forecasting sales of 40,300 units of product for October. To make one unit of finished product, 10 pounds of raw materials are required. Actual beginning and desired ending inventories of raw materials and finished goods are: Required: a

> A friend has $4,800 that has been saved from her part-time job. She will need her money, plus any interest earned on it, in six months and has asked for your help in deciding whether to put the money in a bank savings account at 5.5% interest or to lend

> For each of the following costs, check the columns that most likely apply (both variable and fixed might apply for some costs). Product Costs Direct Indirect Period Variable Fixed Wages of assembly-line workers Depreciation of plant equipment Glue a

> Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Business Function Cost Item Answer 1. Labor time to repair products under warranty 2. TV commercial spots a. Research and d

> Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Business Function Cost Item Answer a. Research and development b. Design c. Production d. Marketing e. Distribution f. Cust

> SAS® is a world leader in business analytics software, delivering breakthrough technology to transform the way organizations do business. For SAS the mission is to empower organizations around the world with superior software, solutions, and services and

> Intel Corporation provides access to its annual reports online at www.intel.com. The annual reports are found in the “About Intel/Investor Relations/Financials and Filings” area of its Web site. Locate the following information in the annual reports prov

> Olympia Productions, Inc., makes award medallions that are attached to ribbons. Each medallion requires 18 inches of ribbon. The sales forecast for February is 8,000 medallions. Estimated beginning inventories and desired ending inventories for February

> Custom Granite, Inc., uses an absorption cost system for accumulating product cost. The following data are available for the past year: • Raw materials purchases totaled $480,000. • Direct labor costs incurred for the

> Determine each of the following missing amounts: Firm A Firm B Firm C Beginning raw materials inventory.. $ 17,000 $ ? $ 42,000 Purchases of raw materials during the year Raw materials available for use Ending raw materials inventory Cost of raw mat

> Riveria Co. makes and sells a single product. The current selling price is $32 per unit. Variable expenses are $20 per unit, and fixed expenses total $43,200 per month. Sales volume for May totaled 4,100 units. Required: a. Calculate operating income fo

> The following summarized data (amounts in millions) are taken from the September 27, 2008, and September 29, 2007, comparative financial statements of Apple Inc. , a manufacturer of personal computers, portable digital music players, and mobile communica

> Body Sculpture, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here: Required: a. Calculate the contribution margin ratio of each product. b. Calculate the firm’s overall co

> Nautical Canvas Co. currently makes and sells two models of a boat cover. Data applicable to the current operation are summarized in the following columns labeled Current Operation. Management is considering adding a Value model to its current Luxury and

> Camden Metal Co. makes a single product that sells for $84.00 per unit. Variable costs are $54.00 per unit, and fixed costs total $120,000 per month. Required: a. Calculate the number of units that must be sold each month for the firm to break even. b.

> Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit, and fixed expenses total $27,000 per month. Required: (Unless otherwise stated, consider each requirement separately.) a. Calcul

> Presented here is the income statement for Edwards Co. for February: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $80,000 Cost of goods sold . . . . . . . . . . . . . . . .

> Presented here is the income statement for Big Surf, Inc., for the month of May: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65,000 Cost of goods sold . . . . . . . . . .

> A cost analyst for Stamper Manufacturing Co. has assembled the following data about the Model 24 stamp pad: The piece of sheet metal from which five pad cases can be made costs $0.24. This amount is based on the number of sheets in a 4,200-pound bundle o

> Shown here is an income statement in the traditional format for a firm with a sales volume of 20,000 units. Cost formulas also are shown: Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

> A department of Alpha Co. incurred the following costs for the month of September. Variable costs, and the variable portion of mixed costs, are a function of the number of units of activity: Activity level in units . . . . . . . . . . . . . . . . . . .

> Ozark, Inc., produces small-scale replicas of vintage automobiles for collectors and museums. Finished products are built on a 1/20 scale of originals. The firm’s income statement showed the following: Revenues (2,400 units) . . . . . . . . . . . . . .

> The management of Rocko’s Pizzeria is considering a special promotion for the last two weeks of October, which is normally a relatively low-demand period. The special promotion would involve selling two medium pizzas for the price of one, plus 1 cent. Th

> Kimber Co. is in the process of liquidating and going out of business. The firm’s accountant has provided the following balance sheet and additional information: It is estimated that all but 12% of the accounts receivable can be colle

> Sam and Denny’s ice cream shop charges $2.50 for a cone. Variable expenses are $0.80 per cone, and fixed costs total $3,200 per month. A “sweetheart” promotion is being planned for the second week of February. During this week, a person buying a cone at

> Meyers Corp. has annual revenues of $450,000, an average contribution margin ratio of 35%, and fixed expenses of $175,000. Required: a. Management is considering adding a new product to the company’s product line. The new item will have $9.75 of variabl

> Jackman, Inc. makes and sells many consumer products. The firm’s average contribution margin ratio is 30 percent. Management is considering adding a new product that will require an additional $21,000 per month of fixed expenses and will have variable ex

> Calculate the missing amounts for each of the following firms: Units Sold Selling Variable Costs Contribution per Unit Operating Income (Loss) Fixed Price Margin Costs Firm A Firm B $12.00 $25,200 5,600 16,800 $20,300 84,500 $ 43,180 (13,500) $22.20

> Calculate the missing amounts for each of the following firms: Contribution Variable Fixed Margin Ratio Operating Income (Loss) Sales Costs Costs Firm A $320,000 ? 32% ? $ 38,300 Firm B $465,050 ? $118,000 71,950 Firm C 134,000 ? 26% 36,700 Firm D 5

> Kiel Center’s sales are all made on account. The firm’s collection experience has been that 35% of a month’s sales are collected in the month the sale is made, 55% are collected in the month following the sale, and 8% are collected in the second month fo

> The following information provides the amount of cost incurred in May for the cost items indicated. During May 16,000 units of the firm’s single product were manufactured. Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

> Terry estimates that the costs of insurance, license, and depreciation to operate his car total $430 per month and that the gas, oil, and maintenance costs are 80 cents per mile. Terry also estimates that, on average, he drives his car 2,000 miles per mo

> For each of the following costs, check the column(s) that most likely apply: Cost Variable Fixed Raw materials Staples used to secure packed boxes of product Plant janitors' wages Order processing clerks' wages Advertising expenses Production worker

> For each of the following costs, check the column(s) that most likely apply: Cost Variable Fixed Wages of assembly-line workers Depreciation-plant equipment Glue and thread Shipping costs Raw materials handling costs Salary of public relations manag

> High Tech, Inc., and Old Time Co. compete within the same industry and had the following operating results in 2010: Required: a. Calculate the break-even point for each firm in terms of revenue. b. What observations can you draw by examining the break-

> a. Prepare a personal balance sheet for yourself as of today. Work at identifying your assets and liabilities; use rough estimates for amounts. b. Prepare a projected income statement for yourself for the current semester. Work at identifying your revenu

> The concept of financial leverage was introduced in Chapter 7 and expanded on in Chapter 11. In Exercise 7.15 you were asked to describe the risks associated with financial leverage. You should now review the solution provided for this problem at www.mhh

> Tommy Appleton is in charge of arranging the “attitude adjustment” period and dinner for the monthly meetings of the local chapter of the Management Accountants Association. Tommy is negotiating with a new restaurant that would like to have the group’s b

> Assume you are a sales representative for Sweet Tooth Candy Company. One of your customers is interested in buying some candy that will be given to the members of a high school Substance Abuse Awareness Club. The club members will be marching in a commun

> You have recently been engaged by Dominic’s Italian Cafe to evaluate the financial impact of adding gourmet pizza items to the menu. A survey of the clientele indicates that demand for the product exists at an average selling price of $18 per pizza. Fixe

> Canada Printing Group, Inc. (CPGI), has recently begun the process of acquiring small to medium-size local and regional printing firms across the country to facilitate its corporate strategy of becoming the low-cost provider of graphic arts and printing

> This problem is based on the 2008 annual report of Intel Corporation in the appendix. Required: a. Compute the following profitability measures for the year ended December 27, 2008: 1. Return on investment, based on net income (perform a DuPont analysis

> Presented here are summarized data from the balance sheets and income statements of Wiper, Inc.: Required: a. Calculate return on investment, based on net income and average total assets, for 2011 and 2010. Show both margin and turnover in your calcula

> Selected balance sheet accounts for Tibbetts Company on September 30, 2010, are as follows: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,000 Marketable securities. . . . . . . . . . . . . . . . . . . . . . . . .

> Assume that the current ratio for Arch Company is 2.0, its acid-test ratio is 1.5, and its working capital is $300,000. Answer each of the following questions independently, always referring to the original information. a. How much does the firm have in

> Required: Prepare a common size balance sheet at December 27, 2008, using the following captions: Total current assets Property, plant, and equipment (net) Marketable equity securities and other long-term investments Goodwill and other long-term assets T

> Selected data from the September 27, 2008, and September 29, 2007, consolidated balance sheets and income statements for the years then ended for Apple Inc. follow. All amounts are reported in millions. Required: a. Calculate the amount of Appleâ

> Listed here are a number of financial statement captions. Indicate in the spaces to the right of each caption the category of each item and the financial statement(s) on which the item can usually be found. Use the following abbreviations: a/

> Look forward to the day when you will have accumulated $5,000, and assume that you have decided to invest that hard-earned money in the common stock of a publicly owned corporation. What data about that company will you be most interested in, and how wil

> Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it, and provide an explanation for your answer. Use + for increase, - for decrease, and (NE) for no effect. Assume that current assets exceed cur

> The Office of Management and Budget provides access to the budget of the United States government at its Web site: www.gpoaccess.gov/usbudget/citizensguide.html. “A Citizen’s Guide to the Federal Budget” provides information about the budget and the budg

> Aussie Corp. manufactures rugby jerseys for collegiate sports teams and sells its merchandise through university bookstores. Required: Identify a specific item in the company’s manufacturing, selling, or administrative processes for which the cost would

> Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it, and provide an explanation for your answer. Use + for increase, - for decrease, and (NE) for no effect. Assume that current assets exceed cur

> If your library has a common stock investment advisory service such as Moody’s Handbook of Common Stocks or online access to an investment advisory service such as Value Line Research Center: Historical Reports, use one of those sources to locate a repor

> You should also review the solution to Case 4.26 on the Web site for this text at www.mhhe.com/marshall9e before attempting to complete this case.) Case 4.26: Gerrard Construction Co. is an excavation contractor. The following summarized data (in thous

> Partially completed financial statements for Whittaker, Inc., follow: WHITTAKER, INC. Income Statement For the Year Ended December 31, 2011 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

> The annual reports of the Coca-Cola Co. and PepsiCo, Inc., indicate the following for the year ended December 31, 2008 (amounts in millions): Required: a. Calculate ROI and ROE for each company for 2008. (Hint: You will need to calculate some of the nu

> This problem is based on the 2008 annual report of Intel Corporation in the appendix. Find in the Selected Financial Data (also known as the Five-Year Financial Summary), or calculate, the following data: a. Net revenues in 2005. b. Cost of goods sold in

> This problem is based on the 2008 annual report of Intel Corporation in the appendix. Find in the Selected Financial Data (also known as the Five-Year Financial Summary), or calculate, the following data: a. Percentage of R&D relative to net revenues in

> Required: a. For the year ended December 31, 2009, Finco, Inc. reported earnings per share of $3.12. During 2010 the company had a 3-for-1 stock split. Calculate the 2009 earnings per share that will be reported in Finco’s 2010 annual report for comparat

> Following are selected data from the November 30, 2008, and November 25, 2007, consolidated balance sheets and income statements for the years then ended for Levi Strauss & Co. and Subsidiaries. All amounts are reported in thousands. Required: Calc

> To what extent is the auditors’ opinion an indicator of a company’s future financial success and future cash dividends to stockholders?

> Richards, Inc. incurred the following costs during May: Raw materials used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 662,000 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 1,304,000 Manufactur

> It is impossible for an auditor to “guarantee” that a company’s financial statements are free of all error because the cost to the company to achieve absolute accuracy (even if that were possible) and the cost of the auditor’s verification would be prohi

> Refer to the “Corporate Governance & Ethics” disclosures provided under the “Investor Relations” link on Intel Corporation’s Web site. Identify the principal topics covered in those disclosures. Are there other topics that you believe would be appropriat

> During the fiscal year ended September 30, 2011, Worrell, Inc., had a 2-for-1 stock split and a 5% stock dividend. In its annual report for 2011, the company reported earnings per share for the year ended September 30, 2010, on a restated basis, of $0.60

> Find and read management’s statement of responsibility in the annual report that you obtained either as a result of completing Exercise 1.1 or otherwise. Identify the principal topics covered in that statement. Are there other topics that you believe wou

> Refer to the Intel Corporation annual report for 2008 in the appendix or to the most recent full annual report that you have downloaded from Intel’s Web site. Find and scan the financial review (notes to consolidated financial statements). Read the indep

> McDonald’s Corp McDonald’s conducts operations worldwide and is managed in three primary geographic segments: America, Europe, and Asia/Pacific, Middle East and Africa (APMEA). A hybrid geographic/corporate segment (&a

> Following is a statement of cash flows (indirect method) for Hartford, Inc., for the year ended December 31, 2011. Also shown is a partially completed comparative balance sheet as of December 31, 2011 and 2010: HARTFORD, INC. Statement of Cash Flows For

> The following information is available from Gray Co.’s accounting records for the year ended December 31, 2010 (amounts in millions): Cash dividends declared and paid. . . . . . . . . . . . . . . . . . . . . . . . . $ 350 Retirement of bonds payable at

> The following information is available from Bromfield Co.’s accounting records for the year ended December 31, 2010 (amounts in millions): Cash dividends declared and paid. . . . . . . . . . . . . . . . . . . . . . . . . $ 340 Interest and taxes paid .

> Following is a partially completed balance sheet for Epsico, Inc., at December 31, 2010, together with comparative data for the year ended December 31, 2009. From the statement of cash flows for the year ended December 31, 2010, you determine the followi

> Milan, Inc. manufactures digital voice recorders. During 2010, total costs associated with manufacturing 208,000 of the new MV-5253 model (introduced this year) were as follows: Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

> The financial statements of Simon Co. include the following items (amounts in thousands): For the Year Ended December 31, Income Statement 2011 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

> Franklin Co. has experienced gross profit ratios for 2010, 2009, and 2008 of 33%, 30%, and 31%, respectively. On April 3, 2011, the firm’s plant and all of its inventory were destroyed by a tornado. Accounting records for 2011, which were available becau

> The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2010: Selling, general, and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 51,000 Accounts

> The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2010: Net cash provided by fi nancing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $112,000 Div

> Freedom Co. purchased a new machine on July 2, 2010, at a total installed cost of $44,000. The machine has an estimated life of five years and an estimated salvage value of $6,000. Required: a. Calculate the depreciation expense for each year of the ass

> Early in January 2010, Tellco, Inc. acquired a new machine and incurred $100,000 of interest, installation, and overhead costs that should have been capitalized but were expensed. The company earned net operating income of $1,000,000 on average total ass

> During the first month of its current fiscal year, Green Co. incurred repair costs of $20,000 on a machine that had five years of remaining depreciable life. The repair cost was inappropriately capitalized. Green Co. reported operating income of $160,000

> Renter Co. acquired the use of a machine by agreeing to pay the manufacturer of the machine $900 per year for 10 years. At the time the lease was signed, the interest rate for a 10-year loan was 12%. Required: a. Use the appropriate factor from Table 6-

> Prepare an answer sheet with the following column headings. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the accou

> Prepare an answer sheet with the column headings that follow. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the acc

> Trout Pro Co. manufactures fishing equipment. During 2010, total costs associated with manufacturing 35,000 fly-cast fishing rods (a new product introduced this year) were as follows: Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . .

> Goodwill arises when one firm acquires the net assets of another firm and pays more for those net assets than their current fair market value. Suppose that Target Co. had operating income of $90,000 and net assets with a fair market value of $300,000. Ta

> Assume that fast-food restaurants generally provide an ROI of 15%, but that such a restaurant near a college campus has an ROI of 18% because its relatively large volume of business generates an above-average turnover (sales ∕ assets). The replacement va

> Using a present value table, your calculator, or a computer program present value function, verify that the present value of $100,000 to be received in five years at an interest rate of 16%, compounded annually, is $47,610. Calculate the present value of

> Using a present value table, your calculator, or a computer program present value function, calculate the present value of a. A car down payment of $3,000 that will be required in two years, assuming an interest rate of 10%. b. A lottery prize of $6 mil

> The information presented here represents selected data from the December 31, 2010, balance sheets and income statements for the year then ended for three firms: Required: Calculate the missing amounts for each firm. Firm A Firm B Firm C Total asse

> Kleener Co. acquired a new delivery truck at the beginning of its current fiscal year. The truck cost $26,000 and has an estimated useful life of four years and an estimated salvage value of $4,000. Required: a. Calculate depreciation expense for each y

> Millco, Inc., acquired a machine that cost $240,000 early in 2010. The machine is expected to last for eight years, and its estimated salvage value at the end of its life is $24,000. Required: a. Using straight-line depreciation, calculate the depreciat

> Assume that a company chooses an accelerated method of calculating depreciation expense for financial statement reporting purposes for an asset with a five-year life. Required: State the effect (higher, lower, no effect) of accelerated depreciation rela

> Alpha, Inc., and Beta Co. are sheet metal processors that supply component parts for consumer product manufacturers. Alpha, Inc., has been in business since 1980 and is operating in its original plant facilities. Much of its equipment was acquired in the

> For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers. a. $400 for repairing damage that resulted from the careless unloading of a new machine. b. $14,00

> Galva set Industries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three man

> For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded. Explain your answers. a. $15,000 annual cost of routine repair and maintenance expenditures for a fleet of delivery vehi