Question & Answer

A hot rolling mill has rolls of diameter = 24 in. It can exert a maximum force = 400,000 lb. The mill has a maximum horsepower = 100 hp. It is desired to reduce a 1.5 in thick plate by the maximumpossible draft in one pass. The starting plate is 10 in wide. In the heated condition, the work material has a strength coefficient = 20,000 lb/in2 and a strain hardening exponent = zero. Determine (a) maximum possible draft, (b) associated true strain, and (c) maximum speed of the rolls for the operation

Describe the accounting entry for a stock dividend, if any. Describe the accounting entry for a stock split, if any.

Prepare a memorandum containing responses to the following items. (a) Describe the cost flow assumptions used in average-cost, FIFO, and LIFO methods of inventory valuation. (b) Distinguish between weighted-average-cost and moving-average-cost for inventory costing purposes. (c) Identify the effects on both the balance sheet and the income statement of using the LIFO method instead of the FIFO method for inventory costing purposes over a substantial time period when purchase prices of inventoriable items are rising. State why these effects take place.

Explain hedge funds’ motivation to rely on expert networks in recent years. (LO4)

Threshold Concept 15)  1. How might cumulative causation work at the level of an individual firm that is losing market share? (Threshold Concept 15)  2. Are there any market forces that work against cumulative causation? For instance, how might markets help to arrest the decline of a depressed region in the economy and slow down the expansion of a booming region?

In which country in Figure 11.5 would you expect to find the highest proportion of poor people? Describe how income is distributed in the two cases.

Andrews Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2014 are as follows. Future Employee Years of Service Jim 3 Paul 4 Nancy 5 Dave 6 Kathy 6 On January 1, 2014, the company amended its pension plan, increasing its projected benefit obligation by $72,000. Instructions Compute the amount of prior service cost amortization for the years 2014 through 2019 using the years-ofservice method, setting up appropriate schedules.

Direct and indirect costs; and cost driver selection         LO2,3 Venture Buses operates throughout the south-eastern suburbs of Melbourne, with its depot located in Cheltenham. Every day, fuel is delivered and stored in tanks located in the depot. This fuel is used by all the buses and administration vehicles. The accountant has been requested to develop a system to assign the cost to the different vehicles in the depot. He has asked your assistance in coming up with a way to identify the fuel costs. Required (a) From the perspective of the depot, is the cost of fuel a direct or indirect cost? (b) From the perspective of the vehicles attached to the depot, can the cost be classified as either direct or indirect?  Briefly explain. (c) What system would be required to have the cost classified as direct?  (d) If the accountant decided to go with an indirect cost classification, how could the cost be allocated? (e) Identify some factors that would determine which method would be the best for the assignment of fuel costs to the vehicles.

Use the information from BE7-2, assuming Restin Co. uses the net method to account for cash discounts. Prepare the required journal entries for Restin Co.

1.      : Do the clinical trials in the United States. Even though it will certainly be more expensive and time-consuming, you’ll feel as if you’re living up to the part of the Hippocratic oath that instructs you to “prescribe regimens for the good of my patients according to my ability and my judgment and never do harm to anyone.”

In a turning operation on plain carbon steel whose Brinell hardness = 275 HB, the cutting speed is set at 200 m/min and depth of cut = 6.0 mm. The lathe motor is rated at 25 kW, and its mechanical efficiency = 90%. Using the appropriate specific energy value from Table 21.2, determine the maximum feed that can be set for this operation. Use of a spreadsheet calculator is recommended for the iterative calculations required in this problem.

Statements of Financial Accounting Concepts set forth financial accounting and reporting objectives and fundamentals that will be used by the Financial Accounting Standards Board in developing standards. Concepts Statement No. 6 defines various elements of financial statements. Instructions Answer the following questions based on SFAC No. 6. (a) Define and discuss the term “equity.” (b) What transactions or events change owners’ equity? (c) Define “investments by owners” and provide examples of this type of transaction. What financial statement element other than equity is typically affected by owner investments? (d) Define “distributions to owners” and provide examples of this type of transaction. What financial statement element other than equity is typically affected by distributions? (e) What are examples of changes within owners’ equity that do not change the total amount of owners’ equity?

resented below are a number of balance sheet items for Montoya, Inc., for the current year, 2014. Goodwill $ 125,000 Accumulated depreciation—equipment $ 292,000 Payroll taxes payable 177,591 Inventory 239,800 Bonds payable 300,000 Rent payable (short-term) 45,000 Discount on bonds payable 15,000 Income taxes payable 98,362 Cash 360,000 Rent payable (long-term) 480,000 Land 480,000 Common stock, $1 par value 200,000 Notes receivable 445,700 Preferred stock, $10 par value 150,000 Notes payable (to banks) 265,000 Prepaid expenses 87,920 Accounts payable 490,000 Equipment 1,470,000 Retained earnings ? Equity investments (trading) 121,000 Income taxes receivable 97,630 Accumulated depreciation—buildings 270,200 Notes payable (long-term) 1,600,000 Buildings 1,640,000 Instructions Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of equity investments (trading) are the same.

Why is it necessary to convert accrual-based net income to a cash basis when preparing a statement of cash flows?

Aldina has identified conflicting authorities that address her research question.  How should she evaluate these authorities to make a conclusion?

Identify two key influences on the nature of a management accounting system.

Why did Lehman Brothers experience financial problems during the credit crisis? (LO5)

Strategic plans; balanced scorecard measures for not-for-profit entity You have been invited by a classmate to help found a new not-for-profit organisation named Students Care. The organisation’s purpose is to provide scholarship money for children in Africa who have become orphans because of the AIDS epidemic. The organisation will operate only on campus, and the target donors are students. Suppose a wealthy businesswoman has offered to coordinate distribution of the scholarship funds to needy students, but wants to see a business plan for the organisation that describes the organisational vision and lists the core competencies, strategies, and operating plans.   Required (a)     Explain what each item on businesswoman’s list means. For each item, provide a possible example for Students Care. (b)     Consider the perspective of internal business processes. Your classmate wants to measure the number of hours per week that volunteers spend collecting donations, but you believe it should be dollars collected per volunteer hour spent in collection, measured on a weekly basis. Give one advantage and one disadvantage for each measure. (c)     You have had difficulty determining a measure of learning and growth, but a campus association recently organised a series of short workshops on improving student fundraising activities, as well as other aspects of governing student entities. Discuss the advantages and disadvantages of using the number of Students Care volunteers attending workshops as a measure for this perspective. (d)     Outline how the use of a strategy map might have been useful in the balanced scorecard process.

Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $38,000. Purchases since January 1 were $72,000; freight-in, $3,400; purchase returns and allowances, $2,400. Sales are made at 331/3% above cost and totaled $100,000 to March 9. Goods costing $10,900 were left undamaged by the fire; remaining goods were destroyed. Instructions (a) Compute the cost of goods destroyed. (b) Compute the cost of goods destroyed, assuming that the gross profit is 331/3% of sales.

What are the sources of pressure that change and influencethe development of GAAP?

On September 1, 2014, Sands Company sold at 104 (plus accrued interest) 4,000 of its 9%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Sands Company bonds. Interest is payable on December 1 and June 1. Bond issue costs of $30,000 were incurred. Instructions Prepare in general journal format the entry to record the issuance of the bonds.

What are the requirements for a taxpayer to make a deductible contribution to a traditional IRA? Why do the tax laws impose these restrictions?

Many investors that purchased the mortgage-backed securities just before the credit crisis believed that they were misled because these securities were riskier than they thought. Who was at fault? (LO5)

1. A key policy objective of the UK Coalition government, achieved in April 2014, was to raise the personal income tax allowance to £10 000. This has been accompanied by the gradual removal of the same allowance from those earning over £100 000 (see Table 11.3). Evaluate these policies. 2. What would the effects be of cuts in (i) the basic rate of tax; (ii) the top rate of tax? 3. What tax changes (whether up or down) will have a positive incentive effect and also redistribute incomes more equally?

Why are particles and flakes members of the same basic class of reinforcing material?