Business
Yukelson Company owns the building occupied by its administrative office. The office building was reflected in the accounts at the end of last year as follows: a, Cost when acquired $412,500 b. Accumulated depreciation (based on straight-line depreciation, an estimated life of 50 years, and a $37,500 residual value) 60,000During January of this year, on the basis of a careful study, management decided that the total estimated useful life should be changed to 30 years (instead of 50) and the residual value reduced to $22,500 (from $30,000). The depreciation method will not change. Required: 1. Compute the annual depreciation expense prior to the change in estimates. 2. Compute the annual depreciation expense after the change in estimates. 3. What will be the net effect of changing estimates on the balance sheet, net income, and cash flows for the year?
The Crunchy Granola Company is a diversified food company that specializes in all natural foods. The company has three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 20Y7, are as follows: Cereal Division Snack Cake Division Retail Bakeries Division Sales $25,000,000 $8,000,000 $9,750,000 Cost of goods sold 16,670,000 5,575,000 6,795,000 Operating expenses 7,330,000 1,945,000 2,272,500 Invested assets 10,000,000 4,000,000 6,500,000The management of The Crunchy Granola Company is evaluating each division as a basis for planning a future expansion of operations.Required:1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department charges.2. Using the DuPont formula for rate of return on investment, compute the profit margin, investment turnover, and rate of return on investment for each division.3. If available funds permit the expansion of operations of only one division, which of the divisions would you recommend for expansion?
Bob lives in Detroit and runs a business that sells boats. In an average year, he receives $851,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totaling $281,000. He owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Bob does not operate this boat business, he can work as an accountant, receive an annual salary of $34,000 with no additional monetary costs, and rent out his showroom at the $71,000 per year rate. No other costs are incurred in running this boat business.Identify each of Bob's costs in the following table as either an implicit cost or an explicit cost of selling boats.Implicit CostExplicit CostThe salary Bob could earn if he worked as an accountantThe wholesale cost for the boats that Bob pays the manufacturerThe rental income Bob could receive if he chose to rent out his showroomThe wages and utility bills that Bob paysComplete the following table by determining Bob's accounting and economic profit of his boat business.Profit(Dollars)Accounting ProfitEconomic Profit
Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $380,000, variable expenses of $205,000, and traceable fixed expenses of $45,000. During the same month, the West business segment had sales revenues of $1,050,000, variable expenses of $536,000, and traceable fixed expenses of $201,000. The common fixed expenses totaled $310,000 and were allocated as follows: $155,000 to the East business segment and $155,000 to the West business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:____________. a. $205,000 b. $130,000 c. $(23,000) d. $(20,000)
Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31.Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $76,860 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.All 3 question are need to find the first interest payment The only difference between 3 is the rate is one below, one higher, one are equal. No need to find the issuance bonds. Because I already had that one done.Please and solve for thefirst interest payment with the steps that would be wonderful, thanksRecord bond issue and related semiannual interest (L04) Pretzelmania, Inc., issues 796, 10-year bonds with a face amount of $70,000 for $70,000 on January 1 2015. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31 1. & 2. Record the bond issue and first interest payment on June 30, 2015. (If no entry is required for a transaction event, select "No journal entry required" in the first account field.) view transaction list view general journal Date General Journal Debit Credit January 01, 2015 Cash 70,000 Bonds payable 70,000 June 30, 2015 Interest expense Bonds payable Cash value: 3.33 points Brief Exercise 9-6 Record bond issue and related semiannual interest (L04) Pretzelmania, Inc., issues 796, 15-year bonds with a face amount of $70,000 for $63.948 on January 1 2015. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31 1. & 2. Record the bond issue and first interest payment on June 30, 2015. (If no entry is required for a transaction event, select "No journal entry required" in the first account field.) view transaction list view general journal Date General Journal Debit Credit January 01, 2015 Cash 63,948 Bonds payable 63,948 June 30, 2015 Interest expense Bonds payable Cash value: 3.34 points Brief Exercise 9-7 Record bond issue and related semiannual interest (L04) Pretzelmania, Inc., issues 796, 15-year bonds with a face amount of $70,000 for $76.860 on January 1 2015. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31 1. & 2. Record the bond issue and first interest payment on June 30, 2015. (lf no entry is required for a transaction event, select "No journal entry required" in the first account field.) view transaction list view general journal Date General Journal Debit Credit January 01, 2015 Cash 76,860 Bonds payable 76,860 June 30, 2015 Interest expense Bonds payable Cash
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units.Expected annual production was:Year 1 2,000 unitsYear 2 3,000 unitsYear 3 2,000 unitsYear 4 2,000 unitsYear 5 1,000 units1. Complete the cost column of a depreciation schedule for each of the alternative methods.a. Straight-line Income Statement Balance SheetYear Depreciation Expense Cost Accumulated Depreciation Book ValueAt acquisition $25,0001 $4,400 $25,000 $4,400 20,6002 4,400 8,800 16,2003 4,400 13,200 11,8004 4,400 17,600 7,4005 4,400 22,000 3,000b. Units-of-production Income Statement Balance SheetYear Depreciation Expense Cost Accumulated Depreciation Book ValueAt acquisition $25,0001 $4,400 $25,000 $4,400 20,6002 6,600 11,000 14,0003 4,400 15,400 9,6004 4,400 19,800 5,2005 2,200 22,000 3,000c. Double-declining-balanceIncome Statement Balance SheetYear Depreciation Expense Cost Accumulated Depreciation Book ValueAt acquisition $25,0001 $10,000 $25,000 $10,000 15,0002 6,000 16,000 9,0003 3,600 19,600 5,4004 2,160 21,760 3,2405 240 22,000 3,000
Match each of the following example with the control method that is or should be used by entering the letter of the example in the answer space next to the correct control method.a. Police work is changing. More and more police departments today are implementing community policing practices: working with the public to create a safer environment for all. For this reason, performance evaluations for police officers are starting to include criteria such as helpfulness and friendliness, which are measures of actions, not outcomes.b. Sam writes for a living and loves it. He writes every daysometimes working on his blog, sometimes on a novel, but always putting something on paper. He learned about perseverance in his college success class, and now he sets aside four hours a day just for writing, regardless of what other activities he may have planned.c. Lifeguards may seem to have an easy life, but the work is really very difficult. All lifeguards have to receive specialized training and be prepared to jump into action at a moments notice if an emergency arises. Professional lifeguards use a paramilitary structure (chief, captain, lieutenant, sergeant, and two levels of lifeguards) so that there is only one person giving orders in the event of an emergency.d. Speed is the name of the game when you are picking applesthe more you pick, the more you get paid. Gustavo receives $13 per box. He and his coworkers know that if they pick fewer than five boxes a day, they will be asked to leave the orchard.1. Bureaucratic control2. Behavior control3. Output control4. Normative control