Accrual and cash basis
Jeremy is a calendar-year taxpayer who sometimes leases his business equipment to local organizations. He recorded the following receipts this year. Indicate the extent to which these payments are taxable income to Jeremy this year if Jeremy is (1) a cash-method taxpayer and (2) an accrual-method taxpayer. (Leave no answers blank. Enter zero if applicable.)
Q-1Following is the Balance sheet of Punita, Rashi and Seema who are sharing profits in the ratio2:1:2 as on 31stMarch, 2013.Liabilities Rs. Assets Rs. Creditors Bill PayablePunita’s capitalRashi’s capitalSeema’s capital38,0002,0001,44,00092,0001,24,0004,00,000BuildingsStockDebtorsCash at bank Profit and Loss2,40,00065,00030,0005,00060,0004,00,000 Punita died on 30th September 2013. She had withdrawn Rs 40000 from her capital on 1 July2013.According to the partnership agreement, she was entitled to interest on capital @ 8% p.a. Her share of Profit till the date of death was to be calculated on the basis of the average profits of the last three years. Goodwill was tube calculated on the basis of Three times of the average profits of the last four years. The profit for the year ended2009-10, 2010-11 and 2011-12 were Rs 30000,70000 and 80000 respectively. Pass Necessary Journal Entries.
Krutch, Inc., is a vertically integrated manufacturer and retailer of golf clubs and accessories (gloves, shoes, bags, etc.). Krewatch maintains separate financial reporting systems for each of its facilities. The company experienced the following events in 2017:
1. After several years of production problems at the accessories manufacturing plant, Krewatch sold the plant to an investor group headed by a former manager at the plant.
2. Krewatch incurred restructuring costs of $12,562,990 when it eliminated a layer of middle management.
3. Krewatch extinguished $200 million in 30-year bonds issued 18 years ago. Krewatch recognized a gain on this transaction.
4. Krewatch changed its method of accounting for inventory from FIFO to the average cost method. Sufficient information was available to determine the effect of this change on prior years’ earnings numbers.
5. Due to technological advances in golf club manufacturing, management determined that production equipment would need to be upgraded more frequently than in the past. Consequently, the useful lives of equipment for depreciation purposes were reduced.
6. The company wrote off inventory that was not saleable.
7. Equipment was sold at a loss.
For each event, (1) identify the appropriate reporting treatment from the following list (consider each event to be material), and (2) indicate whether it would be included in income from continuing operations, would appear on the income statement below that subtotal, or would require retrospective application.
a. Change in accounting estimate.
b. Change in accounting principle.
c. Discontinued operation.
d. Unusual or infrequently occurring item.
Assume the role of Marcus/Mary Carter. In a business memo, answer the following questions, directing your responses to Mr. and Mrs. Kim. Keep your answers succinct. Your memo should be approximately two to three pages (including tables), single-spaced. 1. Given Mr. and Mrs. Kim’s level of financial sophistication, provide an explanation to them regarding Mrs. Kim’s original statement. Are they really 34% ahead of the industry average? Why or why not? Make sure to focus on your audience. This memo should be directed to Mr. and Mrs. Kim to help them understand the situation. 2. Compare their financials to the industry averages (Exhibit 2) and provide an analysis of the Larkin Motel (based on industry averages or other information). Be specific and provide support. If you need to make assumptions, do so, but make sure to include them in your explanation. 3. What recommendations do you have for the Larkin Motel? 4. What additional information, if any, would be helpful in order to make more specific conclusions? Why? Case Tips: • You may analyze this case in any way you like. Ratio analysis may provide additional insight beyond a simple comparison to industry averages. You will need to decide which ratios may provide the most helpful information. • There are several different ways to categorize expenses or to analyze the data. Regardless of how you approach it, make sure to have a reason for your approach. • Make sure to include a discussion around depreciation in your memo (i.e. provide an explanation to Mr. and Mrs. Kim about how this non-cash item impacts their organization, even if they do not see its impact in their bank account). • Make sure to analyze the comparison data itself. Does it make sense to use all of it for comparison with the Larkin Motel? Should portions of it be removed or ignored? Make sure to provide explanations for any conclusions.
When should S&H recognize the revenue and the expense? How much expense should be recognized? S&H Green Stamps In the 1950’s and 1960’s supermarkets gave customers “green stamps” for every dollar of purchases at the grocery store. These stamps could then be redeemed by the customers for merchandise at an S&H warehouse. Basically, the company (Sperry and Hutchinson) provided the stamps to the grocers who didn’t have to pay for the stamps until the month after they were given out to customers. Unused stamps could be returned to the supplier. The customer would collect the stamps in a book until enough stamps had accumulated. The customer would then visit S&H’s warehouse and redeem merchandise (e.g. a TV, a basketball, a set of kitchen towels) for a specified number of filled stamp books.
Activity Based Costing.
1.Provide a comprehensive definition of the method.
2.Who uses or should use it and why?
3.What are the benefits of using it?
4.Are there any drawbacks or limitations? Explain in detail.
Follow APA guidelines, References
write a 3-page paper about a product that u will write a pitch about
in the pitch, you must include the following:
1. Description of the product
2. Cost structure (price, margin, breakeven point)
4.value of your company
5. Budget (1 year by quarter. sales and production)
all of the above topics must be included in details
I need free plagiarism
due Monday midnight 07-03-2016
please read the question carefully and answer
As you are aware, over the past year our stock price has more than doubled, on a risk adjusted basis, with no appreciable change in capital structure or financial performance. You may recall that our last successful product launch was more than five years ago and the market for it has reached saturation, i.e., growth follows GDP growth. Because of the weak economic conditions, we have curtailed R&D expenditures over the past four years and we have no successor product in the pipeline. Is there any reason for us to be concerned about the current increase in our market capitalization?
Be sure to frame your response using the discounted cash flow model as a starting point for your analysis. The maximum length of your report should not exceed two pages
you can use this book as reference
Investment Banking: Valuation, Leveraged Buyouts and
Mergers & Acquisitions,
Joshua Rosenbaum and Joshua Pearl,
Wiley & Sons, Finance Series, 2013.
In a 4-5-page paper, please include the following:
Explain the different types of costs (variable, fixed, sunk, opportunity, direct, indirect).
Give 1-2 examples of each type of cost and explain how these costs will be applied during the manufacturing process.
Conclude your paper by describing the importance of these costs in managerial accounting.
Be sure that the paper has no spelling or grammatical errors.
A part is produced in lots of 1.400 units. It is assembled from 2 components worth $40 toll. The value ad d in production (for labor and variable overhead) is $30 per unit, bringing total costs per completed unit to $70. The average lead time for the part is 4 weeks and annual demand is 3,600 units, based 50 business weeks per year How many units of the part are held, on average, in cycle inventory? units. (Enter your response integer) (Enter your response What is the dollar value of this inventory? S integer) b. How many units of the part are held, on average, in pipeline inventory? units. (Enter your response as an integer) percent completed. Thus, half the labor and variable overhead cost has been added, bringing the unit cost to $56, or $40 +330/2.) the dollar value of this inventory? (Hint: Assume that the typical part in pipeline inventory is 5 What The dollar value of the inventory is S (Enter your response as an integer)
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