Question: Wick Corporation has a Mexican subsidiary that

> Juniper Corp. makes three models of insulated thermos. Juniper has $400,000 in total revenue and total variable costs of $240,000. Its sales mix is given below: Required: 1. Calculate the (overall) weighted-average contribution margin ratio. 2. Determine

> Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy’s costs for the most recent month. Required: Determine each of the following for Noteworthy: 1. Total produ

> Refer to the information in E6–20 for Tiago. Suppose the product mix has shifted to 40/30/30. Required: 1. Determine the new weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must

> Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Required: 1. Determine the weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break eve

> On the graph presented, match each element to its appropriate description. Element: Point A Area G Area C Line H Line I Area B Area F Axis E Axis D Description: 1. Break-even point 2. Number of units of activity 3. Loss zone 4. Total cost 5. Total revenu

> Refer to the information presented in E6–18 for Biscayne’s Rent-A-Ride. Required: 1. Determine Biscayne’s new break-even point in each of the following independent scenarios: a. Product mix is 40/60.

> Biscayne’s Rent-A-Ride rents two models of automobiles: the standard and the deluxe. Information follows: Biscayne’s total fixed cost is $18,500 per month. Required: 1. Determine the contribution margin per rental day

> Tommy’s Tile Service is planning on purchasing new tile cleaning equipment that will improve their ability to remove tough stains from ceramic tiles. The company’s contribution margin is 30 percent and its current break-even point is $250,000 in sales re

> Refer to the information in E6–15 for Remo Company and Angelo Inc. Required: 1. Calculate each company’s degree of operating leverage. 2. Explain why companies with the same total sales and net operating income can hav

> Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income statements for the two companies showing their different cost structures: Required: 1. Briefly describe the similarities and diff

> Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Required: 1. Calculate Lobster Trap’s break-even sales dollars before and after automation.

> Dublin Company and Gary Corp. have degrees of operating leverage of 4.5 and 2.7, respectively. Both companies have net income of $80,000. Required: 1. Without performing any calculations, discuss what the degrees of operating leverage tell us about the t

> Blockett Company makes automobile sunshades and incurs the costs listed in the table below. Required: Use an X to categorize each of the following costs. You may have more than one X for each item.

> Refer to the information regarding Dana’s Ribbon World in E6–11. Required: 1. Suppose Dana’s would like to generate a profit of $800. Determine how many rosettes it must sell to achieve this target pr

> Dana’s Ribbon World makes award rosettes. Following is information about the company: Required: 1. Determine how many rosettes Dana’s must sell to break even. 2. Calculate the break-even point in sales dollars. 3. Prep

> Last month, Laredo Company sold 450 units for $25 each. During the month, fixed costs were $2,520 and variable costs were $9 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in

> Suppose your sister works for a small real estate office as a receptionist. Her employer might be forced to lay off several employees. The employer explained that the company was not “breaking even” and that layoffs would start next month unless things c

> Refer to the information in E5–7 regarding Mountain Dental. Required: 1. Perform a least-squares regression using Mountain’s activity and cost information and state the linear cost equation (y = a + bx). 2. Explain wha

> Refer to the information in E5–7 regarding Mountain Dental. Required: 1. Create a scattergraph using Mountain’s activity and cost information and draw a line on the graph that you believe has the best fit. 2. Using thi

> Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity

> Morning Dove Company’s owner, Sylvester, believes that he can sell 2,000 birdbaths during the month of April and has predicted a net operating income of $6,820 as shown in the following contribution margin statement: Required: Explain t

> Refer to the information for Morning Dove Company in E5–4. Suppose it sells each birdbath for $25. Required: 1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. 2. Prepare a contribution margi

> Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0 to 1,500 units, and monthly production costs for the production of 500 units follow. Morning Dove

> The following information is available for Wonderway, Inc., for 2018: Required: Calculate each of the following costs for Wonderway: 1. Direct labor. 2. Manufacturing overhead. 3. Prime cost. 4. Conversion cost. 5. Total manufacturing cost. 6. Period exp

> Match each of the following graphs to the correct cost behavior. Cost Behavior 1. Variable cost per unit. 2. Total variable cost. 3. Fixed cost per unit. 4. Total fixed cost. 5. Total mixed cost.

> Tempe Office Services and Supplies (TOSS) provides various products and services in the Tempe Research Park, home to numerous high-tech and bio-tech companies. Making color copies is one of its most popular and profitable services. The controller perform

> The following information pertains to the first year of operation for Crystal Cold Coolers Inc.: Required: Prepare Crystal Cold’s full absorption costing income statement and variable costing income statement for the year.

> Your friend, Manuel Rodriguez, has been working as a staff accountant for Williams Company, a small local manufacturing company. His job responsibilities to date have entailed several aspects of financial accounting: preparing monthly financial statement

> Bethany Link delivers parts for several local auto parts stores. She charges clients $0.75 per mile driven. She has determined that if she drives 2,100 miles in a month, her average operating cost is $0.55 per mile. If Bethany drives 4,200 miles in a mon

> Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has determined that if she drives 3,300 miles in a month, her total operating cost is $875. If she drives 4,400 miles in a month, her total operatin

> Steve Silversmith produces unique and exclusive sterling silver rings, pendants, buckles, and chains. Steve pays one supervisor to oversee the work performed by several part-time silversmiths. He pays each silversmith to work 20 hours per week or 40 hou

> Refer to the information presented in E5–17 for Riverside. Each of the following scenarios is a variation of Riverside’s original data. Required: Prepare Riverside’s contribution margin income stateme

> Starcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cup. During the cup promotion, customers would pay an extra $1.00 for the reusable cup and would receive a 25 percent discount each

> Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Required: 1. Complete the preceding table. 2. Identify three costs that would be classified as fixed costs and three that would be classified as variable costs for Rivers

> For each of the following independent cases (A through E), compute the missing values in the table:

> Suppose you are a sales manager for Books on Wheels, Inc., which makes rolling book carts often used by libraries. The company is considering adding a new product aimed at university students. The new product will be a small, collapsible, wheeled tote

> Weir Company (a fictional company) uses straight-line depreciation for its property, plant, andequipment, which, stated at cost, consisted of the following: Weir’s depreciation expenses for 20X1 and 20X0 were $55,000 and $50,000, respec

> Kobe Company began constructing a building for its own use in February 20X1. During 20X1, Kobe incurred interest of $70,000 on specific construction debt and $15,000 on other borrowings. Interest computed on the weighted-average amount of accumulated exp

> Clay Company started construction on a new office building on January 1, 20X1, and it movedinto the finished building on July 1, 20X2. Of the building’s $2,500,000 total cost, $2,000,000was incurred in 20X1 evenly throughout the year. Clay’s incremental

> The income statement and statement of cash flows for ABC Equipment Company for 20X1 areprovided below. Supplemental Information: Other current liabilities represent obligations for general and administrative expenses. Required: Derive a direct method p

> Rosario Company’s International Division reported the following results: The constant currency growth rate for 20X2 represents what the year-over-year sales growth versus 20X1 would have been if exchange rates had not changed from 20X1

> Lindy, a calendar-year U.S. corporation, bought inventory items from a supplier in Germany on November 5, 20X1, for 100,000 euros, when the spot exchange rate was $1.40 per euro. At Lindy’s December 31, 20X1, year-end, the spot exchange rate was $1.38. O

> A wholly owned subsidiary of Ward Inc. has certain expense accounts for the year ended December 31, 20X3, stated in local currency units (LCUs) as follows: The exchange rates at various dates are as follows: Assume that the LCU is the subsidiaryâ&#

> On September 1, 20X1, Cano & Company, a U.S. corporation, sold merchandise to a foreign firm for 250,000 euros. Terms of the sale require payment in euros on February 1, 20X2. On September 1, 20X1, the spot exchange rate was $1.30 per euro. At Cano’s yea

> The CEO of Crawford, Inc., evaluates financial statement information for four distinct operating segments: Television stations, Television entertainment production, Movie entertainment production, and Merchandise sales. The Television stations segment ea

> The CEO of Mannix, Inc., evaluates financial statement information for five distinct operating segments: Appliances, Heathcare, Transportation, Financial services, and Other stuff. Operating profit for each segment follows: Required: Explain which of Ma

> Refer to the information about Clear One Communications in Case C2-2 from Chapter 2. Required: Obtain the Form 10-K Clear One filed with the SEC on August 18, 2005. (Go to www.sec.gov and select “Filings” and then “Search for Company Filings.” Search fo

> The CEO of Lannister, Inc., evaluates financial statement information for five distinct operating segments: Hardware sales, Consulting, Hardware servicing, Financing, and Rising technology. Revenue and assets for the segments expressed as percentages of

> United Company has two foreign subsidiaries, Cancorp and Britcorp. Cancorp operates in Canada and Britcorp operates in the United Kingdom. Both companies are 100% owned by United Company and their financial statements are translated into U.S. dollars usi

> On December 31, 20X1, the Stockholders’ Equity section of Mercedes Corporation was as follows: On March 1, 20X2, the board of directors declared a 10% stock dividend and accordingly issued 900 additional shares. The stockâ€&#

> Newton Corporation was organized on January 1, 20X1. On that date, it issued 200,000 shares of its $10 par value common stock at $15 per share (400,000 shares were authorized). During the period from January 1, 20X1, through December 31, 20X3, Newton rep

> Warren Corporation was organized on January 1, 20X1, with an authorization of 500,000 shares of common stock ($5 par value per share). During 20X1, the company had the following capital transactions: Required: What should be the balance in the Additional

> Forever Yours, Inc., a manufacturer of wedding rings, issued two financial instruments at the beginning of 20X1: a $10 million, 40-year bond that pays interest at the rate of 11% annually and 10,000 shares of $100 preferred stock that pays a dividend of

> The stockholders’ equity section of Peter Corporation’s balance sheet at December 31, 20X1, follows: On January 2, 20X2, Peter purchased and retired 100,000 shares of its stock for $1,800,000. Required: What is the ba

> On July 1, 20X1, Amos Corporation granted nontransferable, nonqualified stock options to certain key employees as additional compensation. The options permit the purchase of 20,000 shares of Amos’s $1 par common stock at a price of $32 per share. On the

> Information concerning the capital structure of the Petrock Corporation is as follows: During 20X1, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shar

> Refer to the salesforce.com financial statement excerpts given below to answer the questions. On January 31, 2019, the price of salesforce.com stock was $151.97, and there were 770 million shares of common stock outstanding. The price of its stock on Jan

> Fountain Inc. has 5,000,000 shares of common stock outstanding on January 1, 20X1. It issued an additional 1,000,000 shares of common stock on April 1, 20X1, and 500,000 more on July 1, 20X1. On October 1, 20X1, Fountain issued 10,000 convertible bonds;

> Tam Company’s net income for the year ending December 31, 20X1, was $10,000. During the year, Tam declared and paid $1,000 cash dividends on preferred stock and $1,750 cash dividends on common stock. At December 31, 20X1, the company had 12,000 shares of

> Effective April 27, 20X1, Dorr Corporation’s shareholders approved a two-for-one split of the company’s common stock and an increase in authorized common shares from 100,000 shares (par value of $20 per share) to 200,0

> The Retained earnings account for Nathan Corporation had a credit balance of $800,000 at the end of 20X0. Selected transactions during 20X1 follow: a. Net income was $130,000. b. Cash dividends declared were $60,000. c. Repurchased 100 shares of Nathan C

> Mason Manufacturing had 600,000 shares of common stock outstanding and 150,000 shares of $100 par value preferred stock outstanding January 1, 20X1. An additional 120,000 shares of common stock were issued on August 1 and 24,000 common shares were repurc

> On April 30, 20X1, Pound Corp. acquired for cash all 200,000 shares of the outstanding common stock of Shake Corp. for $20 per share. At April 30, 20X1, Shake’s balance sheet showed net assets with a $3,000,000 book value. On that date, the fair value o

> Sage Inc. bought 40% of Adams Corporation’s outstanding common stock on January 2, 20X1, for $400,000. The carrying amount of Adams’s net assets at the purchase date totaled $900,000. Fair values and carrying amounts were the same for all items except fo

> In January 20X1, Harold Corporation acquired 20% of Otis Company’s outstanding common stock for $400,000. This investment gave Harold the ability to exercise significant influence over Otis. The book value of Otis’s net assets was $1,500,000. The excess

> Information related to Jones Company’s portfolio of trading securities at December 31, 20X1, follows: Amortized cost of securities……………………………..$340,000 Gross unrealized gains (cumulative)………………… 8,000 Gross unrealized losses (cumulative)………………... 52,000

> The following data pertain to Tyne Company’s investments in marketable equity securities. (Assume that all securities were held throughout 20X0 and 20X1.) Required: 1. What amount should Tyne report as unrealized holding gain (loss) in

> Cephalon Inc. issued $750 million of zero-coupon convertible notes. Because the notes were issued at par, meaning that Cephalon received $750 million cash for the notes, they have a zero yield-to-maturity. Settlement in cash upon conversion is not permit

> Kramden Corporation acquired Norton Company several years ago for $500 million. Goodwill of $100 million was recognized on the transaction. Through 20X0, no goodwill impairment charges have been taken. At December 31, 20X1, the carrying value of Norton,

> Theo Corporation has the following sales and expenses in 20X1, excluding any amounts related to its investment in Caratini Corporation. Next to Theo’s amounts are the 20X1 sales and expenses for Caratini Corporation. There is no excess

> Massie Corporation has an investment in the common stock of Witzmann Corporation. Massie acquired its investment at Witzmann’s book value, so there was no excess cost associated with the investment. In 20X1, Witzmann reported $50 million of net income an

> Mills Corporation owns 90% of Morrow Corporation, and there is no excess cost associated with Mills ’s investment in Morrow. During 20X1, Mills reported in the income statement in its “Parent Only” financial statements, in which the investment in Morrow

> The following is an excerpt from the 2018 Form 10-K of Walgreens Boots Alliance, Inc. (Walgreens). It provides summary income statement data about the companies in which Walgreens has an equity method investment, as well as showing the amount of equity m

> The following were excerpted from Coca-Cola’s 2018 Form 10-K: THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (EXCERPT) THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (EXCERPTâ€&#1

> On January 1, 20X1, Chesapeake Corporation issued common stock with a fair value of $810,000 in exchange for 90% of Dear don Corporation’s common stock. Following are the January 1, 20X1, separate balance sheets of Chesapeake and Dear d

> On January 5, 20X1, Alpha Inc. acquired 80% of the outstanding voting shares of Beta Inc. for $2,000,000 cash. Following are the separate balance sheets for the two companies immediately after the stock purchase, as well as fair value information regardi

> On July 1, 20X1, Pushway Corporation issued 100,000 shares of common stock in exchange for all of Stroker Company’s common stock. The Pushway stock issued had a market value of $500,000 on the date of the exchange. Following are the Jul

> Pate Corp. owns 80% of Strange Inc.’s common stock. During 20X1, Pate sold inventory to Strange for $600,000 on the same terms as sales made to outside customers. Strange sold the entire inventory purchased from Pate by the end of 20X1.

> Groupe Casino is a French multinational company that operates more than 9,000 multiform at retail stores—hypermarkets, supermarkets, discount stores, convenience stores, and restaurants— throughout the world. It has tw

> Founded on January 1, 20X1, Gehl Company had the following passive investments in equity securities at the end of 20X1 and 20X2: Required: If the company recorded a $4,000 debit to its Fair value adjustment account as its 20X2 fair value adjustment, wha

> Stone has provided the following information on its available-for-sale securities: Amortized cost as of 12/31/X1……………………………………$170,000 Unrealized gain as of 12/31/X1……………………………………….4,000 Unrealized losses as of 12/31/X1……………………………………26,000 Net realized g

> On January 1, 20X1, Pack Corp. acquired all of Slam Corp.’s common stock for $500,000. On that date, the fair values of Slam’s net assets equaled their book values of $400,000. During 20X1, Slam paid cash dividends of

> On January 1, 20X1, Pitt Company acquired an 80% investment in Saxe Company. The acquisition cost was equal to Pitt’s equity in Saxe’s recorded net assets at that date. On January 1, 20X1, Pitt and Saxe had retained earnings of $500,000 and $100,000, res

> On April 1, 20X1, Dart Company paid $620,000 for all issued and outstanding common stock of Wall Corporation in a transaction properly accounted for under the acquisition method. Wall’s recorded assets and liabilities on April 1, 20X1,

> First Solar, Inc., designs and manufactures photovoltaic (PV) solar modules with an advanced thin film semiconductor technology; develops, designs, and constructs PV solar power systems that primarily use the modules it manufactures; and provides operati

> On January 1, 20X1, LeMoyne Construction Company signs a contract to build an office building for Franklin Corporation for $10 million. Franklin remits $1 million to LeMoyne upon signing the contract, $5 million when the foundation and all outside compon

> Lyft, Inc., is an app-based ridesharing service. Users request rides via their smart phones and drivers, using their own cars, respond to the requests via the system. Lyft collects the fares from riders and remits the payments due to drivers, keeping a f

> Mystery Technologies, Inc., a hypothetical company, is a leading manufacturer of bar-code scanners and related information technology whose stock is traded on the New York Stock Exchange. In 20X3, the SEC filed allegations that during the previous five-y

> Corrpro Companies, Inc., founded in 1984, provides corrosion control–related services, systems, equipment, and materials to the infrastructure, environmental, and energy markets. Corrpro’s products and services include

> Etsy, Inc., provides a technology platform aimed at allowing sellers to turn their creative passions into economic opportunities. Presented below are excerpts from its December 31, 2018 Form 10-K. Sources of Liquidity In March 2018, we issued $345.0 mill

> The following is selected information from Bob Touret, Inc.’s financial statements. Solve for the missing amounts for each of the five years. You may have to use some numbers from the year before or the year after to solve for certain c

> Following is selected information from the balance sheet for Flaps Inc. Solve for the missing amounts for each of the five years.

> The following is the pre closing trial balance of Ralph Retailers, Inc.: The following additional information is provided: a. The company paid a salary advance of $5,000 to one of its employees, a total that was debited to the Salaries expense account. T

> a. On January 1, 20X1, Frances Corporation started doing business and the owners contributed $200,000 capital in cash. b. The company paid $24,000 to cover the rent for the office space for the 24-month period from January 1, 20X1, to December 31, 20X2.

> The following income statement and balance sheet information is available for the operating segments of Bogart, Inc. The segments do not sell goods or services to one another. The Flynn and Cagney segments have similar economic characteristics, products,

> Refer to the facts in problem P18-7. Required: 1. Translate Mavrogenes’s 20X1 Income Statement into U.S. dollars using the temporal method. 2. Translate Mavrogenes’s 20X1 Statement of Retained Earnings into U.S. dollars using the temporal method. 3. Tra

> Mavrogenes Corporation is a wholly owned Canadian subsidiary of a U.S. parent company. Mavrogenes was formed on January 1, 20X1, when the parent invested C$40 million and Mavrogenes issued 100 shares of common stock. The following are Mavrogenesâ&#

> Refer to Darvish Company in problem P18-5. Use the same information, except assume Cubbie translates Darvish’s financial statements into U.S. dollars using the temporal method. Required: 1. What is the amount of Darvish’s translation exposure at Decembe

> Darvish Company is a European subsidiary of Cubbie Corporation, a U.S. company. Darvish had the following balance sheet at December 31, 20X1: There are no differences between local GAAP and U.S. GAAP for Darvish. Cubbie Translates Darvishâ€&#1

> Neville Company decides at the beginning of 20X3 to adopt the FIFO method of inventory valuation. It had used the LIFO method for financial reporting since its inception on January 1, 20X1, and had maintained records that are sufficient to retrospectivel