Question & Answer

RNA Inc. manufactures a variety of consumer products. The company’s founders have run the company for 30 years and are now interested in retiring. Consequently, they are seeking a purchaser who will continue its operations, and a group of investors, Morgan Inc., is looking into the acquisition of RNA. To evaluate its financial stability and operating efficiency, RNA was requested to provide the latest financial statements and selected financial ratios. Summary information provided by RNA is as follows.     Instructions (a) Calculate a new set of ratios for the fiscal year 2015 for RNA based on the financial statements presented. (b) Explain the analytical use of each of the six ratios presented, describing what the investors can learn about RNA’s financial stability and operating efficiency. (c) Identify two limitations of ratio analysis.

1.      : How might the state control the accuracy of principals who are conducting teacher evaluations? Explain.

Wayne Rogers, an administrator at a major university, recently said, “I’ve got some CDs in my IRA, which I set up to beat the IRS.” As elsewhere, in the world of accounting and finance, it often helps to be fluent in abbreviations and acronyms. Instructions Presented below is a list of common accounting acronyms. Identify the term for which each acronym stands, and provide a brief definition of each term. (a) AICPA (e) FAF (i) CPA (b) CAP (f) FASAC (j) FASB (c) ARB (g) SOP (k) SEC (d) APB (h) GAAP (l) IASB

Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $24,500. In addition, Jose incurred the following expenses before using the van: shipping costs of $650; paint to match the other fleet vehicles at a cost of $1,000; registration costs of $3,200, which included $3,000 of sales tax and an annual registration fee of $200; wash and detailing for $50; and an engine tune-up for $250. What is Jose’s cost basis for the delivery van?

Based on the video about micrometers, explain the primary factor that makes an English micrometer different from a metric micrometer.

Describe the accounting for the issuance for cash of nopar value common stock at a price in excess of the stated value of the common stock.

Support or refute the following statement: Investors can avoid all types of risk by purchasing a mutual fund that contains only Treasury bonds. (LO2)

Melissa recently paid $400 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $250 fee to register for the conference, $300 per night for three nights’ lodging, $200 for meals, and $150 for cab fare.

The part shown in Figure P16.13 is to be pressed of iron powders using a compaction pressure of 75,000 lb/in2 . Dimensions are inches. Determine (a) the most appropriate pressing direction, (b) the required press tonnage to perform this operation, and (c) the final weight of the part if the porosity is 10%. Assume shrinkage during sintering can be neglected.

1. The following table shows data for a monopsonist employer. Fill in the missing figures. How many workers should the firm employ if it wishes to maximise profits? 2. Will a monopsony typically also be a monopoly? Try to think of some examples of monopsonists that are not monopolists, and monopolists that are not monopsonists.

How does a weak dollar affect U.S. inflation? Explain. (LO2)

1.       : Describe the elements of the communication model in Exhibit 17.2. Give an example of each part of the model as it exists in the classroom during communication between teacher and students.

In 2024, Carson is claimed as a dependent on his parents’ tax return. His parents report taxable income of $200,000 (married filing jointly). Carson’s parents provided most of his support. What is Carson’s tax liability for the year in each of the following alternative circumstances?

JB Corporation is a C corporation owned 80 percent by Jacob and 20 percent by Bauer.  Jacob would like JB to make an S election, but Bauer is opposed to the idea.  Can JB elect to be taxed as an S corporation without Bauer’s consent?  Explain.

When a taxpayer sells an asset, what is the difference between realized and recognized gain or loss on the sale?

Rex and Felix are the sole shareholders of the Dogs and Cats Corporation (DCC). After several years of operations using the accrual method, they decided to liquidate the corporation and operate the business as a partnership. Rex has a tax basis in his shares of $60,000 and Felix has a tax basis in his shares of $20,000. Rex and Felix hired a lawyer to draw up the legal papers to dissolve the corporation, but they need some tax advice from you, their trusted accountant. DCC’s tax accounting balance sheet at the date of liquidation is as follows:  AssetsTax BasisFMV Cash$30,000$30,000 Accounts receivable 10,000 10,000 Inventory 10,000 20,000 Equipment 30,000 20,000 Building 15,000 30,000 Land   5,000   40,000     Total assets $100,000 $150,000   Liabilities Accounts payable $5,000 Mortgage payable - Building 10,000 Mortgage payable - Land 10,000 Total liabilities $25,000   Stockholders’ Equity Common stock - Rex (80%)$100,000 Common stock - Felix (20%) 25,000   Total shareholders’ equity$125,000   Required: a) Compute the gain or loss recognized by Rex, Felix, and DCC on a complete liquidation of the corporation assuming each shareholder receives a pro rata distribution of the corporation’s assets and assumes a pro rata amount of the liabilities.

Why will investment affect both actual (short-term) growth and the long-term growth in potential output? What will be the implications if these two effects differ in magnitude?

Ekiya, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in wages. Assume Ekiya has no dependents. Ekiya deducts the standard deduction instead of itemized deductions, she is not eligible for the qualified business income deduction.   a. What is the amount of Ekiya’s after-tax compensation (ignore payroll taxes)?

Is a corporation’s choice of its tax year independent from its year-end for financial accounting purposes?

Explain whether a corporation’s assumption of shareholder liabilities will always constitute boot in a §351 transaction.

What policy prescriptions do the neoclassical and endogenous growth theories offer policy makers who are looking to raise their country’s long-run growth rate?

Evergreen Corporation (calendar-year-end) acquired the following assets during the current year:

What is the purpose of the statement of cash flows? What information does it provide?

Describe the appeal and the difficulties of investing in a franchise as a route to small business ownership.

What are the most common metals used in die casting?