Homework Help for Accounting

Maximum effectiveness and efficiency are reached when the leanphilosophy is used by both manufacturers and their suppliers. TrueFalse

Please answer the questions below:

1. Sam quit a $30,000-a-year job with a local heating and airconditioning firm to go into business for himself. After his firstyear in business, his accountant showed him an income statementthat indicated Sam’s firm had a profit of $40,000. During this yearSam had drawn a salary of $20,000.
a) What was Sam’s accounting profit, his entrepreneurial profit,and his opportunity cost?
b) Explain the difference between accounting and entrepreneurialprofit.

2. You are going to open a business making custom cabinets. Youcan sell each cabinet for $80. It takes a cabinet-makerapproximately 45 minutes to make one cabinet. Each cabinet-makerworks an eight-hour day, earning $18 per hour. Each cabinet willuse $25 in raw materials. You usually produce cabinets 20 days amonth and can employ two cabinet-makers. You estimate that yourfixed costs are $5,000 per month.
a) What is your contribution margin?
b) How many cabinets must you make each month to break even?
c) What is your total monthly revenue if you want to earn a $2,000profit?

3. Jane James owns an appliance store. She normally receives$50,000 worth of appliances per month. She does not like to owepeople money and always pays her bills on the day she receives theinvoice. Someone told her that if she delayed payment, she couldactually increase her profit because the money would be earninginterest in her account. She went through her bills and found thatshe actually had an additional ten days, on average to pay herinvoices. She also found that she was earning 5 percent interest onthe money she had in her money market savings account.
a) If she delayed payment by ten days, how much additional interestwould she earn for the year?
b) Explain how this problem represents a disbursement float.

4. Larry’s Lawn Equipment Company gives terms of 2/10, n/30.Larry has annual credit sales of $500,000 and average accountsreceivable of $60,000.

a) What is Larry’s accounts receivable turnover?

b) What is Larry’s average daily collection?

c) What is the relationship between the terms that Larry isgiving and his average daily collection?

Now calculate the following If Larry has accounts receivable of$100,000 rather than $60,000:

a) What is Larry’s accounts receivable turnover?
b) What is Larry’s average collection period?
c) What should Larry do, if anything?

As a student studying abroad and taking full advantage of travelopportunities. How could you plan your travels to maximize foreigncurrency translation as you cross borders while minimizing yourpersonal tax burden? Do you think such an undertaking would orwould not be worthwhile?

How exactly might the Statement of Cash Flows be used toevaluate the performance of a company? What might the Statement ofCash Flows show
us that could not be accomplished strictly through a review of theother financials? explain in detailed

What if a company had board members who worked in a publiccompany? Would these board members encourage SOX controls?

Classic British Sports Cars, Inc. specializes in maintaining andrestoring sports cars from the 1960s and relies on a flexiblebudget. For January, 2012, the company projected that its revenuewould be $100,000 based on 500 repair jobs at an average cost of$300 and 50 restoration jobs at an average cost of $2,000. Actualrevenue for January was $268,000. Is that a favorable orunfavorable variance? What different factors could account for thatvariance? How should the company adjust its projections as a resultof this variance?

Problem 3 (TRUE/FALSE questions). Please answer whether astatement is true or false, and explain your answer (6 pointseach).

1. Growth and cash flows are generally negativelycorrelated.

2. The EVA model discounts future EVAs bycost of equity.

3. The dividend discount model, like other discountmodels, uses discounting to value an enterprise.

Employees commonly earn wages that are yet to be paid at the end of a year. Should their wages be recognized as expenses in the period that the work is performed or when the wages are paid?

what four general factors would u use to evaluate howto price the bundled products?

In the balanced scorecard, the financial perspective addresseswhich of the following questions? "To achieve our mission, how willwe sustain our ability to change and improve?" "To succeedfinancially, how should we appear to our shareholders?" "To satisfyour shareholders and customers, in what business process must weexcel?" "To achieve our mission, how should we appear to ourcustomers?"

Hi,
I have a general question in regards to after reporting dayadjustments. I'm getting a bit confused as to what I have to do.For example, I have a provision or warranty that wasn't recognisedon 30 june 2010 at the end of the reporting period and itsdiscovered in Jan 2011 and is material. This adjustment relatesonly to the 2010 period and not any prior periods. I realise thisis an adjusting entry, but I'm kind of confused about how to dothis. Do I change the previous periods accounts or put a note inthe previous period. Any help is appreciated and sorry if it's astupid question.