Refer to the information in S10-7 and prepare a worksheet that uses formulas to reproduce the bond discount amortization schedule shown for simplified effective-interest amortization in Chapter Supplement 10C. Display both the completed spreadsheet and a “formulas revealed” (Ctrl ~) version of it Data from S10-7: Assume the authors of a popular introductory accounting text have hired you to create spreadsheets that will calculate bond discount amortization schedules like those shown in this chapter. As usual, you e-mail your friend Owen for some guidance. Much to your disappointment, you receive an auto-reply message from Owen indicating that he’s gone skiing in New Zealand. After a bit of panicking, you realize you can refer to Owen’s previous e-mail messages for spreadsheet advice that will help you complete this task. From his advice for Chapter 9, you decide to create a data input section for the stated interest rate, market interest rate, face value, issue price, and years to maturity. The spreadsheet file also will have a separate amortization schedule worksheet that contains only formulas, references to the cells in the data input section, and references to other cells in the amortization schedule. All amounts will be rounded to the nearest dollar (using the Round function in Excel), which means the discount amortization in the final year might be off a few dollars (unless you use the IF function in Excel to eliminate any remaining discount in the final year of the bond’s life, in the same way that Owen showed in Chapter 9 for declining-balance depreciation).
> Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $15. At the start of January 2018, VGC’s income statement accounts had zero balances and its balance sheet accoun
> Fit for Life (FFL) operates a fitness center and snack lounge. The following is a partial list of FFL transactions during its year ended December 31. FFL adjusts its records only at year-end. Required: 1. Calculate the cost of goods sold on January 8,
> Grid Iron Prep Inc. (GIPI) is a service business incorporated in January of the current year to provide personal training for athletes aspiring to play college football. The following transactions occurred during the month ended January 31. a. GIPI issue
> On January 1, Pulse Recording Studio (PRS) had the following account balances. The following transactions occurred during January. a. Received $2,500 cash on 1/1 from customers on account for recording services completed in December. b. Wrote checks o
> Nicole’s Getaway Spa (NGS) continues to grow and develop. Nicole is now evaluating a computerized accounting system and needs your help in understanding how source documents inform accounting processes. She also needs some help reconcil
> Assume it is now December 31, 2018, and Nicole has just completed her first year of operations at Nicole’s Getaway Spa. After looking through her trial balance, she noticed that there are some items that have either not been recorded or are no longer up-
> Starting in May, Nicole has decided that she has everything she needs to open her doors to customers. To keep up with competition, Nicole has added gift certificates and has started to advertise her company more to keep her business going in the long ter
> CC2-1 Accounting for the Establishment of a Business Nicole has decided that she is going to start her business, Nicole’s Getaway Spa (NGS). A lot has to be done when starting a new business. Here are some transactions that have occurred prior to April 3
> Nicole Mackisey is thinking of forming her own spa business, Nicole’s Getaway Spa (NGS). Nicole expects that she and two family members will each contribute $10,000 to the business and receive 1,000 shares each. Nicole forecasts the following amounts for
> Looking back over the last few years, it is clear that Nicole Mackisey has accomplished a lot running her business, Nicole’s Getaway Spa (NGS). Nicole is curious about her company’s performance as she compares its fina
> What is gross profit? How is the gross profit percentage computed? Illustrate its calculation and interpretation assuming Net Sales is $100,000 and Cost of Goods Sold is $60,000.
> During a recent year, Nicole’s Getaway Spa (NGS) reported net income of $2,300. The company reported the following activities: a. Increase in inventory of $400. b. Depreciation of $3,000. c. Increase of $2,170 in prepaid expenses. d. Payments of $4,600 o
> CC11-1 Accounting for Equity Financing Nicole has been financing Nicole’s Getaway Spa (NGS) using equity financing. Currently NGS has authorized 100,000 no-par preferred shares and 200,000 $2 par common shares. Outstanding shares include 50,000 preferred
> Nicole thinks that her business, Nicole’s Getaway Spa (NGS), is doing really well and she is planning a large expansion. With such a large expansion, Nicole will need to finance some of it using debt. She signed a one-year note payable with the bank for
> Nicole’s Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $7,000. The estimated useful life was five years and the residual value was $500. A
> The following transactions occurred over the months of September to December at Nicole’s Getaway Spa (NGS). Required: 1. Prepare journal entries for each of the transactions. Assume a perpetual inventory system. 2. Estimate the Allow
> In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she could manage a si
> Nicole’s Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aromatherapy items. Nicole uses a perpetual inven
> You are one of three stockholders who own and operate Mary’s Maid Service. The company has been operating for seven years. One of the other stockholders has prepared the company’s annual financial statements. Recently, you proposed the financial statemen
> Complete this case involving Adelphia Communications, which your instructor may access from and make available to you in the Connect eBook. By completing the requirements of this case, which ask you to explain how accounting concepts apply to Adelphia’s
> As a team, select an industry to analyze. Reuters provides lists of industries in the online stock screener at stockscreener.us.reuters.com/Stock/US. Another source is csimarket.com. Each group member should access the annual report (or Form 10-K filed w
> Why is revenue from selling a product/service bundle allocated between the product and service
> Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2106 for The Home Depot runs from February 1, 2016, to January 29, 2017. Fiscal 2016 for Lowe’s runs from January 30, 2016,
> Answer the following questions by referring to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. As with many retail companies, The Hom
> Enter the account names and dollar amounts from the comparative balance sheets in Exhibit 13.1 into a worksheet in a spreadsheet file. Create a second copy of the worksheet in the same spreadsheet file. Required: 1. To the right of the comparative num
> Speedy Company uses the double-declining-balance method to depreciate its property, plant, and equipment and Turtle Company uses the straight-line method. The two companies are exactly alike except for the difference in depreciation methods. Required:
> Capital Investments Corporation (CIC) requested a sizable loan from First Federal Bank to acquire a large piece of land for future expansion. CIC reported current assets of $1,900,000 (including $430,000 in cash) and current liabilities of $1,075,000. Fi
> This case is available online in the Connect eBook. To complete this case, you will consider the negative effects of auditors (a) failing to identify going-concern problems that exist and (b) reporting going-concern problems that do not exist.
> As a team, select an industry to analyze. Using your web browser, each team member should access the annual report or 10-K for one publicly traded company in the industry, with each member selecting a different company. (See S1-3 in Chapter 1 for a descr
> Lumber Liquidators, Inc., competes with Lowe’s in product lines such as hardwood flooring, moldings, and noise-reducing underlay. The two companies reported the following financial results in fiscal 2016: Required: 1. Calculate the di
> Compute the following three ratios for The Home Depot’s year ended January 29, 2017: (i) fixed asset turnover, (ii) days to sell, and (iii) debt-to-assets. To calculate the ratios, use the Fiscal 2016 financial statements of The Home Depot in Appendix A
> Change the amounts for selected balance sheet accounts in the spreadsheets created for either S12-7 or S12-8 to calculate the net cash flows from operating activities if, just before the current year-end, the company’s management took the actions listed
> Explain the difference between Sales Revenue (gross) and Net Sales.
> Refer to the information presented in S12-7. Required: Complete the same requirements, except use the direct method only. You’ve recently been hired by B2B Consultants to provide financial advisory services to small business manager
> You’ve recently been hired by B2B Consultants to provide financial advisory services to small business managers. B2B’s clients often need advice on how to improve their operating cash flows and, given your accounting b
> QuickServe, a chain of convenience stores, was experiencing some serious cash flow difficulties because of rapid growth. The company did not generate sufficient cash from operating activities to finance its new stores, and creditors were not willing to l
> This case is available online in the Connect eBook. To complete this case, you will evaluate two alternatives for increasing a sports club’s reported operating cash flows.
> This case is based on a cash flow reporting fraud at Enron. The case is available online in the Connect eBook. To complete this case, you will evaluate the statement of cash flow effects of misclassifying a loan as a sale.
> As a team, select an industry to analyze. Using your web browser, each team member should access the annual report or 10-K for one publicly traded company in the industry, with each member selecting a different company. (See S1-3 in Chapter 1 for a descr
> Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. Fiscal 2016 for Lowe’s runs from January 30, 2016,
> Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further explanation.) Required: 1. Which of the two basic re
> Using a web search engine such as Google, find either an earnings or dividend announcement for two different companies. Using a source such as bigcharts.com, determine the closing stock price for each company for each day during the five business days be
> You have retired after a long and successful career as a business executive and now spend a good portion of your time managing your retirement portfolio. You are considering three basic investment alternatives. You can invest in (1) corporate bonds payin
> In response to the weak economy, your company’s sales force is urging you, the sales manager, to change sales terms from 1/10, n/30 to 2/30, n/60. Explain what these terms mean and how this switch could increase or decrease your company’s profits.
> You are the president of a very successful Internet company that has had a remarkably profitable year. You have determined that the company has more than $10 million in cash generated by operating activities not needed in the business. You are thinking a
> Activision became a public company with an initial public offering of stock on June 9, 1983, at $12 per share. In June 2002, Activision issued 7.5 million additional shares to the public at approximately $33 per share in a seasoned new issue. In October
> As a team, select an industry to analyze. Using your web browser, each team member should access the annual report or 10-K for one publicly traded company in the industry, with each member selecting a different company. (See S1-3 in Chapter 1 for a descr
> Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. Fiscal 2016 for Lowe’s runs from January 30, 2016,
> Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further explanation.) Required: 1. As of January 29, 2017, h
> Refer to the information in S10-7 and prepare a worksheet that uses formulas to reproduce the effective-interest bond discount amortization schedule shown in Chapter Supplement 10B. Display both the completed spreadsheet and a “formulas revealed” (Ctrl ~
> Assume the authors of a popular introductory accounting text have hired you to create spreadsheets that will calculate bond discount amortization schedules like those shown in this chapter. As usual, you e-mail your friend Owen for some guidance. Much to
> Assume you work as an assistant to the chief financial officer (CFO) of Fashions First, Inc. The CFO reminds you that the fiscal year-end is only two weeks away and that he is looking to you to ensure the company stays in compliance with its loan covenan
> Assume you are a portfolio manager for a large insurance company. The majority of the money you manage is from retired school teachers who depend on the income you earn on their investments. You have invested a significant amount of money in the bonds of
> What is a sales discount? Use 2/30, n/45 in your explanation.
> Many retired people invest a significant portion of their money in bonds of corporations because of their relatively low level of risk. During the 1980s, significant inflation caused some interest rates to rise to as high as 15 percent. Retired people wh
> As a team, select an industry to analyze. Using your web browser, each team member should access the annual report or 10-K for one publicly traded company in the industry, with each member selecting a different company. (See S1-3 in Chapter 1 for a descr
> Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. Fiscal 2016 for Lowe’s runs from January 30, 2016,
> Refer to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. See S1-1 for further explanation.) Required: 1. Calculate and express as
> To make some extra money, you’ve started preparing templates of business forms and schedules for others to download from the Internet (for a small fee). After relevant information is entered into each template, it automatically performs
> As an aspiring financial analyst, you have applied to a major Wall Street firm for a summer job. To screen potential applicants, the firm provides you a short case study and asks you to evaluate the financial success of two hypothetical companies that st
> Assume you are one of three members of the accounting staff working for a small, private company. At the beginning of this year, the company expanded into a new industry by acquiring equipment that will be used to make several new lines of products. The
> This case is based on a cost capitalization fraud at WorldCom. The case is available online in the Connect eBook. To complete this case, you will identify information that suggests certain costs are not appropriately capitalized and you will calculate th
> As a team, select an industry to analyze. Using your web browser, each team member should access the annual report or 10-K for one publicly traded company in the industry, with each member selecting a different company. (See S1-3 in Chapter 1 for a descr
> Refer to the financial statements of The Home Depot in Appendix A and Lowe’s in Appendix B at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. Fiscal 2016 for Lowe’s runs from January 30, 2016,
> What is the distinction between Sales Returns and Sales Allowances?
> What are the purposes of (a) the balance sheet, (b) the income statement, (c) the statement of retained earnings, and (d) the statement of cash flows?
> Explain the concept of the time value of money.
> Solve the following linear programming model graphically: minimize Z = 8x1 + 6x2 subject to 4x1 + 2x2 Ú 20 - 6x1 + 4x2 … 12 x1 + x2 Ú 6 x1, x2 Ú 0
> For Problem 22, a. Explain the effect on the optimal solution of changing the daily pay for a permanent claims processor from $64 to $54. b. Explain the effect of changing the daily pay for a temporary claims processor from $42 to $36. c. What would be t
> Universal Claims Processors processes insurance claims for large national insurance companies. Most claim processing is done by a large pool of computer operators, some of whom are permanent and some of whom are temporary. A permanent operator can proces
> InProblem20, if the constraint x1≥8 is changed to x1≤8, what effect does this have on the feasible solution space and the optimal solution?
> Solve the following linear programming model graphically: maximize Z = 6.5x1 + 10x2 subject to 2x1 + 4x2 … 40 x1 + x2 … 15 x1 Ú 8 x1, x2 Ú 0
> The Munchies Cereal Company makes a cereal from several ingredients. Two of the ingredients, oats and rice, provide vitamins A and B. The company wants to know how many ounces of oats and rice it should include in each box of cereal to meet the minimum r
> Transform the model in Problem 18 into standard form, and indicate the value of the slack variables at each corner point solution.
> Solve the following linear programming model graphically:
> In Problem 16: a. If Amelia works 35 hours weekly, will she make more money? b. If the admissions office reduces Amelia’s wage to £8 per hour, and restaurant raises the wage to £9 per hour, and Amelia works up to 25 hours at the restaurant, will these ch
> Amelia wants to do a part time job during her spring break. She has two jobs now—one in an admissions office and the other in a nearby restaurant. She does not want to work for more than 40 hours per week. She believes that working in the restaurant is e
> Hannah Byers and Kathleen Taylor are considering the possibility of teaching swimming to kids during the summer. A local swim club opens its pool at noon each day, so it is available to rent during the morning. The cost of renting the pool during the 10-
> In Problem 14, what would be the effect on the optimal solution if the available labor were increased from 200 to 240 hours?
> A clothier makes coats and slacks. The two resources required are wool cloth and labor. The clothier has 150 square yards of wool and 200 hours of labor available. Each coat requires 3 square yards of wool and 10 hours of labor, whereas each pair of slac
> In Problem 11: a. The maximum demand for bracelets is 4. If the store produces the optimal number of bracelets and necklaces, will the maximum demand for bracelets be met? If not, by how much will it be missed? b. What profit for a necklace would result
> In Problem 11, explain the effect on the optimal solution of increasing the profit on a bracelet from $400 to $600. What will be the effect of changing the platinum requirement for a necklace from 2 ounces to 3 ounces?
> A jewelry store makes necklaces and bracelets from gold and platinum. The store has 18 ounces of gold and 20 ounces of platinum. Each necklace requires 3 ounces of gold and 2 ounces of platinum, whereas each bracelet requires 2 ounces of gold and 4 ounce
> The Elixer Drug Company produces a drug from two ingredients. Each ingredient contains the same three antibiotics, in different proportions. One gram of ingredient 1 contributes 3 units, and 1 gram of ingredient 2 contributes 1 unit of antibiotic 1; the
> In Problem 40 in Chapter 1, when Tracy McCoy wakes up Saturday morning, she remembers that she promised the PTA she would make some cakes and/or homemade bread for its bake sale that afternoon. However, she does not have time to go to the store to get in
> Solve the following linear programming model graphically and explain the solution result:
> Solve the following linear programming model graphically and explain the solution result: maximize Z = 60x1 + 90x2 subject to 60x1 + 30x2 … 1,500 100x1 + 100x2 Ú 6,000 x2 Ú 30 x1, x2 Ú 0
> Solve the following linear programming model graphically and explain the solution result: minimize Z = +3,000x1 + 1,000x2 subject to 60x1 + 20x2 Ú 1,200 10x1 + 10x2 Ú 400 40x1 + 160x2 Ú 2,400 x1, x2 Ú 0
> Annie Russell, a student at Tech, plans to open a hot dog stand inside Tech’s football stadium during home games. There are seven home games scheduled for the upcoming season. She must pay the Tech athletic department a vendor’s fee of $3,000 for the sea
> In Problem 56: a. If the fraternity buys a larger warming oven that has 25 shelves with the same shelf dimensions, for an additional $2,000, how much would they increase profit? b. If they could increase their budget to $1,500 per game, how much would th
> The Beta Upsilon Sigma honorary business fraternity at Tech wants to open a food booth at the football stadium for the upcoming season as a project to raise money to tutor students in management science courses. There will be six home games in the season
> In Problem 54: a. If Starbright Coffee Shop could get 1 more pound of coffee, which one should it be? What would be the effect on sales of getting 1 more pound of this coffee? Would it benefit the shop to increase its brewing capacity from 30 gallons to
> Starbright Coffee Shop at the Galleria Mall serves two coffee blends it brews on a daily basis, Pomona and Coastal. Each is a blend of three high-quality coffees from Colombia, Kenya, and Indonesia. The coffee shop has 6 pounds of each of these coffees a
> In Problem 52, if Professor Smith could hire Brad or Sarah to work 1 additional hour, which should she choose? What would be the effect of hiring the selected graduate assistant for 1 additional hour?
> Professor Smith teaches two sections of business statistics, which combined will result in 120 final exams to be graded. Professor Smith has two graduate assistants, Brad and Sarah, who will grade the final exams. There is a 3-day period between the time
> Janet Lopez is establishing an investment portfolio that will include stock and bond funds. She has $720,000 to invest, and she does not want the portfolio to include more than 65% stocks. The average annual return for the stock fund she plans to invest
> In Problem 49, the Chinese shipper would like to gain more shipping orders from Xara because it’s a prestigious company and would enhance the shipper’s reputation. It has therefore made the following proposals to Xara: a. Would Xara give the Chinese ship
> Xara Stores in the United States imports the designer-inspired clothes it sells from suppliers in China and Brazil. Xara estimates that it will have 45 orders in a year, and it must arrange to transport orders (in less-than-full containers) by container
> Suppose that in Problem 47, it turns out that twice as many guests prefer wine as beer. Will the Robinsons have enough wine with the amount they ordered in the Problem 47 solution? How much waste will there be with the solution in Problem 47?
> In problem 20, the production process for making pizzas that Benny’s Big Slice Pizza uses is very labor intensive. Benny is considering a more automated process design that requires the purchase of additional equipment that will increase annual fixed cos
