Category Archives: ACC 560 (NEW)

ACC 560 Week 9 Homework Chapter 13 (E13-4, E13-6, E13-7 and P13-1A) NEW

ACC 560 Week 9 Homework Chapter 13 (E13-4, E13-6, E13-7 and P13-1A) NEW

Chapter 13: Statement of Cash Flows

ACC 560 Week 9 Chapter 13 Exercises 4, 6, and 7; Problem 1
E13-4
Gutierrez Company reported net income of $225,000 for 2017. Gutierrez also reported depreciation expense of $45,000 and a loss of $5,000 on the disposal of equipment. The comparative balance sheet shows a decrease in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $4,000 decrease in prepaid expenses.
Instructions
Prepare the operating activities section of the statement of cash flows for 2017. Use the indirect method.

E13-6
the three accounts shown below appear in the general ledger of Herrick Corp. during 2017.
Equipment
Date                                                                  Debit               Credit              Balance
Jan.      1          Balance                                                                                                160,000
July      31        Purchase of equipment                                    70,000                                                 230,000
Sept.    2          Cost of equipment constructed                        53,000                                                 283,000
Nov.    10        Cost of equipment sold                                                            49,000                         234,000
Accumulated Depreciation—Equipment
Date                                                                              Debit   Credit              Balance
Jan.      1          Balance                                                                                                71,000
Nov.    10        Accumulated depreciation on equipment sold             30,000                                     41,000
Dec.     31        Depreciation for year                                                   28,000                         69,000
Retained Earnings
Date                                                                              Debit   Credit              Balance
Jan.      1          Balance                                                                                                105,000
Aug.     23        Dividends (cash)                                              14,000                                     91,000
Dec.     31        Net income                                                                  77,000                         168,000

Instructions

From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on disposal of equipment was $7,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $53,000.

E13-7
Rojas Corporation’s comparative balance sheets are presented below.
ROJAS CORPORATION
Comparative Balance Sheets
December 31
2017                2016
Cash                                                                                                    $14,300         $10,700
Accounts receivable                                                                            21,200           23,400
Land                                                                                                    20,000           26,000
Buildings                                                                                             70,000           70,000
Accumulated depreciation—buildings                                                          (15,000)           (10,000)
________        _________
Total                                                                                                    $110,500       $120,100
Accounts payable                                                                                $12,370         $31,100
Common stock                                                                                                75,000           69,000
Retained earnings                                                                                23,130           20,000
_________      _________
Total                                                                                                    $110,500       $120,100

Instructions

a. Prepare a statement of cash flows for 2017 using the indirect method.
b. Compute free cash flow.

P13-1A
You are provided with the following transactions that took place during a recent fiscal year.

(a)        Recorded depreciation expense on the plant assets.
(b)        Recorded and paid interest expense.
(c)        Recorded cash proceeds from a disposal of plant assets.
(d)        Acquired land by issuing common stock.
(e)        Paid a cash dividend to preferred stockholders.
(f)        Paid a cash dividend to common stockholders.
(g)        Recorded cash sales.
(h)        Recorded sales on account.
(i)         Purchased inventory for cash.
(j)         Purchased inventory on account.

Instructions

Complete the table indicating whether each item (1) affects operating (O) activities, investing (I) activities, financing (F) activities, or is a noncash (NC) transaction reported in a separate schedule, and (2) represents a cash inflow or cash outflow or has no cash flow effect. Assume use of the indirect approach.

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ACC 560 Week 9 DQ Cash Flow Statements and Cash Hoards NEW

ACC 560 Week 9 DQ Cash Flow Statements and Cash Hoards NEW

“Cash Flow Statements and Cash Hoards” Please respond to the following:
Apple Inc. and Microsoft Corp. are identified as companies that have accumulated substantial sums of cash. Microsoft and Apple increased dividend payouts and acquired treasury stock to return some of the excess cash to shareholders. Use the Internet and/or Strayer Learning Resource Center to identify one (1) additional large company which is currently accumulating a cash hoard. Next, evaluate how the company identified in your research can use the cash flow statement to project efficient uses of the cash hoard it has accumulated.
Suggest at least two (2) advantages and two (2) disadvantages of companies accumulating cash hoards. Provide a rationale for your suggestion.

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ACC 560 Week 9 Assignment 2 Johnson Controls Capital Investments (2 Papers) NEW

ACC 560 Week 9 Assignment 2 Johnson Controls Capital Investments (2 Papers) NEW

 

This Tutorial contains 2 Different Papers

Visit the Website of Johnson Controls Inc., located at http://www.johnsoncontrols.com, and review its 2012 financial forecasts. According to the forecasts, Johnson Controls will increase capital investments to approximately $1.7 billion. More than 70% of the company’s capital expenditures in 2012 are associated with growth and margin expansion opportunities.

Write a five to six (5-6) page paper in which you:

1.Suggest a methodology to supplement the traditional methods for evaluating the capital investments of Johnson Controls in the emerging markets to reduce risk providing a rationale of how risk will be reduced.
2.Assess the potential impact of inflation on planned capital investments in China and examine approaches for an accurate evaluation of the investments. Suggest how this knowledge may impact management’s decisions.
•Contrast the modifications you would make in evaluating the projects to increase internal capacity in North America to evaluating expansion projects in the global market and how this information will impact the decisions made related to expansion.
4.Examine the benefits of using sensitivity analysis in evaluating the projects for Johnson Controls and how this approach can provide a competitive advantage for the company.
5.Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:

•Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
•Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:

•Plan and evaluate capital investments.
•Use technology and information resources to research issues in managerial accounting.
•Write clearly and concisely about managerial accounting using proper writing mechanics.
Click here to view the grading rubric.

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ACC 560 Week 8 Quiz 6 (Chapter 11) NEW

ACC 560 Week 8 Quiz 6 (Chapter 11) NEW

Question 1

If actual direct materials costs are greater than standard direct materials costs, it means that
Question 2

The standard direct materials quantity does not include allowances for
Question 3

Marburg Co. expects direct materials cost of $6 per unit for 100,000 units (a total of $600,000 of direct materials costs). Marburg’s standard direct materials cost and budgeted direct materials cost is

Question 4

If the labor quantity variance is unfavorable and the cause is inefficient use of direct labor, the responsibility rests with the
Question 5

A managerial accountant
1. does not participate in the standard setting process.
2. provides knowledge of cost behaviors in the standard setting process.
3. provides input of historical costs to the standard setting process.
Question 6

Using standard costs
Question 7

An unfavorable materials quantity variance would occur if
Question 8

Hofburg’s standard quantities for 1 unit of product include 2 pounds of materials and 1.5 labor hours. The standard rates are $2 per pound and $7 per hour. The standard overhead rate is $8 per direct labor hour. The total standard cost of Hofburg’s product is
Question 9

Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However, the plastic actually cost $80 per yard. The company actually made 3,900 units, although it had planned to make only 3,300 units. Total yards used for production were 3,960. How much is the total materials variance?
Question 10

Unfavorable materials price and quantity variances are generally the responsibility of the
Price Quantity.

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ACC 560 Week 8 Homework Chapter 12 (E12-3, E12-5, E12-8) NEW

ACC 560 Week 8 Homework Chapter 12 (E12-3, E12-5, E12-8) NEW

 

Chapter 12: Planning for Capital Investments
E12-3
Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million; six months ago, Hillsong spent $55,000 to keep it operational. The existing sewing machine can be sold today for $250,000. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years 1 to 7:
Year 1             $390,000
2          400,000
3          411,000
4          426,000
5          434,000
6          435,000
7          436,000
The new sewing machine would be depreciated according to the declining-balance method at a rate of 20%. The salvage value is expected to be $400,000. This new equipment would require maintenance costs of $100,000 at the end of the fifth year. The cost of capital is 9%.
Instructions
Use the net present value method to determine whether Hillsong should purchase the new machine to replace the existing machine, and state the reason for your conclusion.

E12-5
Bruno Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $430,000. The company believes that with this new machine it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $101,000 for the next 6 years. Management requires a 10% rate of return on all new investments.

Instructions

Calculate the internal rate of return on this new machine. Should the investment be accepted?

E12-8
Pierre’s Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $300,000. A new salon will normally generate annual revenues of $70,000, with annual expenses (including depreciation) of $41,500. At the end of 15 years the salon will have a salvage value of $80,000.

Instructions

Calculate the annual rate of return on the project.

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ACC 560 Week 8 DQ Investments in Global Markets NEW

ACC 560 Week 8 DQ Investments in Global Markets NEW

“Investments in Global Markets” Please respond to the following:
Use the Internet and/or Strayer Learning Resource Center to research capital investments in global markets. Next, analyze the main factors that an organization should consider in determining the required rate of return for evaluating projects in global markets and the impact that this will have on decision making.
Imagine that you are the Chief Financial Officer (CFO) of a U.S.-based international manufacturing company. Propose two (2) actions that you would take in order to defend the difference in the required rate of return for your company on similar projects in an established market as compared to the same investment in an emerging market. Provide a rationale for your response.

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ACC 560 Week 7 Quiz 5 (Chapter 9 and Chapter 10) NEW

ACC 560 Week 7 Quiz 5 (Chapter 9 and Chapter 10) NEW

 

Question 1

The production budget shows expected unit sales are 100,000. The required production units are 104,000. What are the beginning and desired ending finished goods units, respectively?

Question 2

Which of the following is not a proper match-up?
Question 3

If a company has adopted continuous budgeting, the budget will show plans for
Question 4

Which of the following is not an operating budget?
Question 5

A master budget consists of
Question 6

A static budget
Question 7

In developing a flexible budget within a relevant range of activity,

Question 8

A major element in budgetary control is

Question 9

Shane Industries prepared a fixed budget of 60,000 direct labor hours, with estimated overhead costs of $300,000 for variable overhead and $90,000 for fixed overhead. Shane then prepared a flexible budget at 57,000 labor hours. How much is total overhead costs at this level of activity?

Question 10
A cost center

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ACC 560 Week 7 Homework Chapter 11 (E11-3, E11-6, E11-12, P11-2A) NEW

ACC 560 Week 7 Homework Chapter 11 (E11-3, E11-6, E11-12, P11-2A) NEW

Chapter 11: Standard Costs and Balanced Scorecard

E11-3
Stefani Company has gathered the following information about its product. Direct materials. Each unit of product contains 4.5 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.5 pounds. Materials cost $5 per pound, but Stefani always takes the 2% cash discount all of its suppliers offer. Freight costs average $0.25 per pound. Direct labor. Each unit requires 2 hours of labor. Setup, cleanup, and downtime average 0.4 hours per unit. The average hourly pay rate of Stefani’s employees is $12. Payroll taxes and fringe benefits are an additional $3 per hour. Manufacturing overhead. Overhead is applied at a rate of $7 per direct labor hour.
Instructions
a. Compute Stefani’s total standard cost per unit.

E11-6
Lewis Company’s standard labor cost of producing one unit of Product DD is 4 hours at the rate of $12.00 per hour. During August, 40,600 hours of labor are incurred at a cost of $12.15 per hour to produce 10,000 units of Product DD.
Instructions
a. Compute the total labor variance.
b. Compute the labor price and quantity variances.
c. Repeat (b), assuming the standard is 4.1 hours of direct labor at $12.25 per hour.

E11-12
Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $850,000 comprised of $250,000 of variable costs and $600,000 of fixed costs. Byrd applies overhead on the basis of direct labor hours.
During the current year, Byrd produced 95,000 putters, worked 94,000 direct labor hours, and incurred variable overhead costs of $256,000 and fixed overhead costs of $600,000.
Instructions
a. Compute the predetermined variable overhead rate and the predetermined fixed overhead rate.
b. Compute the applied overhead for Byrd for the year.
c. Compute the total overhead variance.

P11-2A
Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017.
Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.
Instructions
a. Compute all of the variances for (1) direct materials and (2) direct labor.
b. Compute the total overhead variance.

 

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ACC 560 Week 7 DQ Variance Analysis and Balanced Scorecards NEW

ACC 560 Week 7 DQ Variance Analysis and Balanced Scorecards NEW

Week 6 details: Variance Analysis and Balanced Scorecards” Please respond to the following:
Use the Internet and/or Strayer Learning Resource Center to research a company that has implemented a balanced scorecard system for evaluating performance. Suggest at least two (2) variance measures the identified company can employ in a balanced scorecard performance evaluation system, and examine how the company can use these variances to improve performance.
Examine the main reasons service companies are more sensitive to labor and price variances, as compared to material price variances, and determine the importance of companies managing these variances in relation to sustaining profitability

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ACC 560 Week 6 Quiz 4 (Chapters 7 and 8) NEW

ACC 560 Week 6 Quiz 4 (Chapters 7 and 8) NEW

 

Question 1

In March 2016, Wheels ‘N Spokes repairs a bicycle that takes two hours to repair and uses parts of $240. The bill for this repair would be

Question 2
In cost-plus pricing, the target selling price is computed as

Question 3
The labor charge per hour in time-and-material pricing includes all of the following

Question 4
A company that is a price taker would most likely use which of the following methods?
Question 5

The desired ROI per unit is calculated by
Question 6

A company is contemplating the acceptance of a special order. The order would not affect regular sales and could be filled without exceeding plant capacity. However, a new stamping machine would have to be purchased in order to stamp the customer’s name on the product. Which of the following is likely?
Question 7

Which statement is true concerning the decision rule on whether to make or buy?
Question 8
The opportunity cost of an alternate course of action that is relevant to a make-or-buy decision is

Question 9
Martin Company incurred the following costs for 70,000 units:
Variable costs $420,000
Fixed costs 392,000
Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping.
If Martin wants to earn $6,000 on the order, what should the unit price be?

Question 10
Incremental analysis is most useful

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