Question & Answer

Production rate for a certain assembled product is 47.5 units per hour. The total assembly work content time = 32 minutes of direct manual labor. The line operates at 95% uptime. Ten workstations have two workers on opposite sides of the line so that both sides of the product can be worked on simultaneously. The remaining stations have one worker. Repositioning time lost by each worker is 0.2 min/cycle. It is known that the number of workers on the line is two more than the number required for perfect balance. Determine (a) number of workers, (b) number of workstations, (c) the balancing efficiency, and (d) average manning level.

Compare the relative merits of increased road fuel taxes, electronic road pricing and tolls as means of reducing urban traffic congestion.

1.    : Imagine yourself in a situation of being encouraged by colleagues to inflate your expense account. What factors do you think would influence your decision? Explain.

How will competition between growth-maximising firms benefit the consumer?

Where can authoritative IFRS guidance related to intangible assets be found?

Campbell’s tax return was audited because they failed to report on their tax return interest they earned.  What IRS audit selection method identified their tax return?

Irene is disabled and receives payments from a number of sources. The interest payments are from bonds that Irene purchased over past years and a disability insurance policy that Irene purchased herself. Calculate Irene’s gross income.

Willow Corp. (a calendar-year C corporation) reported taxable income before the net operating loss deduction (NOL) in the amount of $100,000 in 2024. Willow had an NOL carryover of $90,000 to 2024 How much tax will Willow Corp. pay for 2024, what is its NOL carryover to 2025, and when will the NOL expire under the following assumptions?

Which countries’ merchandise trade had fallen as a percentage of GDP between the 2000s and the 2010s? Explain why.

(1)   For each of the following citations identify the type of authority (statutory, administrative, or judicial) and explain the citation.   a.       Reg. Sec. 1.111-1(b)

Orthogonal cutting is performed on a metal whose mass specific heat = 1.0 J/g-C, density = 2.9 g/cm3 , and thermal diffusivity = 0.8 cm2 /s. The cutting speed is 4.5 m/s, uncut chip thickness is 0.25 mm, and width of cut is 2.2 mm. The cutting force is measured at 1170 N. Using Cook's equation, determine the cutting temperature if the ambient temperature = 22°C.

Explain the meaning and use of implied volatility. (LO4)

During a recent management meeting at Sunset Consulting Services, a team member questioned why the costing system had multiple indirect cost pools given it would be easier just to have one.  Provide a brief response to explain why the business has adopted multiple indirect costs pools.

Linear, stepwise linear, and piecewise linear cost functions (a)          Total fixed costs are $10 000 per week and the variable cost per unit is $8. Write the algebraic expression for the cost function and graph it. What are the assumptions of the cost function? (b)          Total fixed costs are $25 000 per week up to 2000 units a week and then jump up to $35 000 per week. The variable cost per unit is $8. Write the algebraic expression for the cost function and graph it. (c)           The average cost to produce 10,000 units is $45 and the average cost to produce 12 000 units is $44. Estimate the average cost to produce 15 000 units. (d)          The total cost function for Hot Dog Days, a hot dog cart business in Centennial Park, is TC = $5000 + 45% ´ total revenues. Estimate the total cost for a month when total revenues are $10 000.

When the COVID-19 epidemic struck unexpectedly at the end of 2019, company closures and instructions to stay at home severely disrupted the economy. Write a short essay outlining how COVID-19 has affected the growth and use of fintech. Do you think this terrible episode had a positive effect on the growth and use of fintech, or did it generate more problems than fintech could solve?

Midwest Health Club (MHC) offers one-year memberships. Membership fees are due in full at the beginning of the individual membership period. As an incentive to new customers, MHC advertised that any customers not satisfied for any reason could receive a refund of the remaining portion of unused membership fees. As a result of this policy, Richard Nies, corporate controller, recognized revenue ratably over the life of the membership. MHC is in the process of preparing its year-end financial statements. Rachel Avery, MHC’s treasurer, is concerned about the company’s lackluster performance this year. She reviews the financial statements Nies prepared and tells Nies to recognize membership revenue when the fees are received. Instructions Answer the following questions. (a) What are the ethical issues involved? (b) What should Nies do?

In robot programming, what is the difference between powered leadthrough and manual leadthrough?

Metro Corp. traded building A for building B. Metro originally purchased building A for $50,000, and building A’s adjusted basis was $25,000 at the time of the exchange. What is Metro’s realized gain or loss, recognized gain or loss, and adjusted basis in building B in each of the following alternative scenarios?  a.  The fair market value of building A and of building B is $40,000 at the time of the exchange. The exchange does not qualify as a like-kind exchange. b.  The fair market value of building A and of building B is $40,000. The exchange qualifies as a like-kind exchange c. The fair market value of building A is $35,000, and building B is valued at $40,000. Metro exchanges building A and $5,000 cash for building B. building A and building B are like-kind property. d. The fair market value of building A is $45,000, and Metro trades building A for building B valued at $40,000 and $5,000 cash. Building A and building B are like-kind property.

Englehart Co. provides the following information about its postretirement benefit plan for the year 2014. Service cost $ 90,000 Prior service cost amortization 3,000 Contribution to the plan 56,000 Actual and expected return on plan assets 62,000 Benefi ts paid 40,000 Plan assets at January 1, 2014 710,000 Accumulated postretirement benefi t obligation at January 1, 2014 760,000 Accumulated OCI (PSC) at January 1, 2014 100,000 Dr. Discount rate 9% Instructions Compute the postretirement benefit expense for 2014.

On July 31, 2014, Mexico Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division of Mexico. Conchita reported the following balance sheet at the time of the acquisition. It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,750,000. Over the next 6 months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2014, Conchita reports the following balance sheet information. It is determined that the fair value of the Conchita Division is $1,850,000. The recorded amount for Conchita’s net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value $150,000 above the carrying value. Instructions (a) Compute the amount of goodwill recognized, if any, on July 31, 2014. (b) Determine the impairment loss, if any, to be recorded on December 31, 2014. (c) Assume that fair value of the Conchita Division is $1,600,000 instead of $1,850,000. Determine the impairment loss, if any, to be recorded on December 31, 2014. (d) Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement. Salaries and Other Expenses Number Employee (excluding Building of Projects Benefits Depreciation Charges) Completed projects with long-term benefits 15 $ 90,000 $50,000 Abandoned projects or projects that benefit the current period 10 65,000 15,000 Projects in process—results indeterminate 5 40,000 12,000 Total 30 $195,000 $77,000 Current assets $ 800,000 Current liabilities $ 600,000 Noncurrent assets 2,700,000 Long-term liabilities 500,000 Total assets $3,500,000 Stockholders’ equity 2,400,000 Total liabilities and stockholders’ equity $3,500,000 Current assets $ 450,000 Noncurrent assets (including goodwill recognized in purchase) 2,400,000 Current liabilities (700,000) Long-term liabilities (500,000) Net assets $1,650,000

What type of earnings per share presentation is required in a complex capital structure?

Will speculators buy or sell Treasury bond futures contracts if they expect interest rates to increase? Explain. (LO2)

Presented below is financial information for two different companies. Alatorre Company Eduardo Company Sales revenue $90,000 (d) Sales returns and allowances (a) $ 5,000 Net sales 81,000 95,000 Cost of goods sold 56,000 (e) Gross profi t (b) 38,000 Operating expenses 15,000 23,000 Net income (c) Instructions Compute the missing amounts.

Describe a lockup provision and explain why it might be required by the lead underwriter. (LO3)

Tremaine would like to organize UTA as either an S Corporation or a C corporation. In either form, the entity will generate a 9 percent annual before-tax return on a $1,000,000 investment. Tremaine’s marginal income tax rate is 37 percent, and his tax rate on dividends and capital gains is 23.8 percent (including the net investment income tax). If Tremaine organizes UTA as an S corporation, he will be allowed to claim the deduction for qualified business income. Also, because Tremaine will participate in UTA’s business activities, the income from UTA will not be subject to the net investment income tax. Assume that UTA will pay out 25 percent of its after-tax earnings every year as a dividend if it is formed as a C corporation.   a. How much cash after taxes would Tremaine receive from his investment in the first year if UTA is organized as either an S corporation or as a C corporation?  b. What is the overall tax rate on UTA’s income in the first year if UTA is organized as an S corporation or as a C corporation? c. What is the overall tax rate on UTA’s income in the first year if it is organized as an S corporation, but UTA’s income is not qualified business income? d. What is the overall tax rate on UTA’s income if it is organized as an S corporation, UTA’s income is not qualified business income, and Tremaine is a passive investor in UTA?