Question & Answer

What are the implications of Regulation FD? (LO4)

2 A bearing of simple geometry is to be pressed out of bronze powders, using a compacting pressure of 207 MPa. The outside diameter = 44 mm, the inside diameter = 22 mm, and the length of the bearing = 25 mm. What is the required press tonnage to perform this operation?

What are the possible disadvantages of vertical mergers?

Is it possible for a taxpayer who pays AMT to have a marginal tax rate higher than the stated AMT rate?  Explain.

Presented below are a number of independent situations. Instructions For each individual situation, determine the amount that should be reported as cash. If the item(s) is not reported as cash, explain the rationale. 1. Checking account balance $925,000; certificate of deposit $1,400,000; cash advance to subsidiary of $980,000; utility deposit paid to gas company $180. 2. Checking account balance $600,000; an overdraft in special checking account at same bank as normal checking account of $17,000; cash held in a bond sinking fund $200,000; petty cash fund $300; coins and currency on hand $1,350. 3. Checking account balance $590,000; postdated check from customer $11,000; cash restricted due to maintaining compensating balance requirement of $100,000; certified check from customer $9,800; postage stamps on hand $620. 4. Checking account balance at bank $37,000; money market balance at mutual fund (has checking privileges) $48,000; NSF check received from customer $800. 5. Checking account balance $700,000; cash restricted for future plant expansion $500,000; short-term Treasury bills $180,000; cash advance received from customer $900 (not included in checking account balance); cash advance of $7,000 to company executive, payable on demand; refundable deposit of $26,000 paid to federal government to guarantee performance on construction contract.

Aluminum has a density of 2.70 g/cm3 at room temperature (20°C). Determine its density at 650°C, using data in Table 4.1 as a reference.

What is the Guerin process?

Certain changes in joint configuration are usually made to improve the strength of brazed joints. What are some of these changes?

How do two taxpayers determine who has priority to claim a person as a dependent if the person is a qualifying child of both taxpayers when neither

A slab milling operation is performed on the top surface of a steel rectangular workpiece 12.0 in long by 2.5 in wide. The helical milling cutter, which has a 3.0 in diameter and ten teeth, is set up to overhang the width of the part on both sides. Cutting speed is 125 ft/min, feed is 0.006 in/tooth, and depth of cut = 0.300 in. Determine (a) the actual machining time to make one pass across the surface and (b) the maximum metal removal rate during the cut. (c) If an additional approach distance of 0.5 in is provided at the beginning of the pass (before cutting begins), and an overtravel distance is provided at the end of the pass equal to the cutter radius plus 0.5 in, what is the duration of the feed motion

Under what circumstances would a rise in income tax act as (a) a disincentive and (b) an incentive to effort?

In terms of the broad definition of money, would a deposit account passbook count as money?

You are the vice president of finance of Sandy Alomar Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2014. These schedules appear below. Sales Cost of Gross ($5 per unit) Goods Sold Margin Schedule 1 $150,000 $124,900 $25,100 Schedule 2 150,000 129,400 20,600 The computation of cost of goods sold in each schedule is based on the following data. Cost Total Units per Unit Cost Beginning inventory, January 1 10,000 $4.00 $40,000 Purchase, January 10 8,000 4.20 33,600 Purchase, January 30 6,000 4.25 25,500 Purchase, February 11 9,000 4.30 38,700 Purchase, March 17 11,000 4.40 48,400 Jane Torville, the president of the corporation, cannot understand how two different gross margins can be computed from the same set of data. As the vice president of finance, you have explained to Ms. Torville that the two schedules are based on different assumptions concerning the flow of inventory costs, i.e., FIFO and LIFO. Schedules 1 and 2 were not necessarily prepared in this sequence of cost flow assumptions. Instructions Prepare two separate schedules computing cost of goods sold and supporting schedules showing the composition of the ending inventory under both cost flow assumptions.

1.       : Studies have suggested that extroverts contribute less to teams and are poor listeners, yet other studies suggest that they are more likely to earn six-figure incomes. Discuss why you think this might be the case.

Repeat the analysis undertaken in Figure 20.5 to consider the possible subsequent effects following a period of demand-pull deflation.

1.       : Discuss some of the potential positive and negative aspects of sending digital nudges to managers via e-mail or text messages. What do you see as the most important ways for managers to use this technology?

Is the character of partnership income/gains and expenses/losses determined at the partnership or partner level? Why?

Name some of the elements that have the greatest effect on the hardenability of steel.

Dean Kastner is 78 years old and lives by himself in an apartment in Chicago.Dean’s gross income for the year is $2,500.Dean’s support is provided as follows:Himself (5 percent, his daughters Camille (25 percent) and Rachel (30 percent), his son Zander (5 percent), his friend Frankie (15 percent), and his niece Sharon (20 percent).

Suppose the hole in Problem 26.10 were to be cut using EDM rather than ECM. Using a discharge current = 20 amps (which would be typical for EDM), how long would it take to cut the hole? From Table 4.1, the melting temperature of iron is 2802°F.

In the previous problem, propose a way of scheduling to meet the weekly demand if there were four machines instead of three.

How would you set about judging whether an industry had a genuine case for infant/senile industry protection?

At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the year:

At December 31, 2013, Stacy McGill Corporation reported current assets of $370,000 and current liabilities of $200,000. The following items may have been recorded incorrectly. 1. Goods purchased costing $22,000 were shipped f.o.b. shipping point by a supplier on December 28. McGill received and recorded the invoice on December 29, 2013, but the goods were not included in McGill’s physical count of inventory because they were not received until January 4, 2014. 2. Goods purchased costing $15,000 were shipped f.o.b. destination by a supplier on December 26. McGill received and recorded the invoice on December 31, but the goods were not included in McGill’s 2013 physical count of inventory because they were not received until January 2, 2014. 3. Goods held on consignment from Claudia Kishi Company were included in McGill’s December 31, 2013, physical count of inventory at $13,000. 4. Freight-in of $3,000 was debited to advertising expense on December 28, 2013. Instructions (a) Compute the current ratio based on McGill’s balance sheet. (b) Recompute the current ratio after corrections are made. (c) By what amount will income (before taxes) be adjusted up or down as a result of the corrections?

Late in 2011, Joan Seceda and four other investors took the chain of Becker Department Stores private, and the company has just completed its third year of operations under the ownership of the investment group. Andrea Selig, controller of Becker Department Stores, is in the process of preparing the year-end financial statements. Based on the preliminary financial statements, Seceda has expressed concern over inventory shortages, and she has asked Selig to determine whether an abnormal amount of theft and breakage has occurred. The accounting records of Becker Department Stores contain the following amounts on November 30, 2014, the end of the fiscal year. Cost Retail Beginning inventory $ 68,000 $100,000 Purchases 255,000 400,000 Net markups 50,000 Net markdowns 110,000 Sales revenue 320,000 According to the November 30, 2014, physical inventory, the actual inventory at retail is $115,000. Instructions (a) Describe the circumstances under which the retail inventory method would be applied and the advantages of using the retail inventory method. (b) Assuming that prices have been stable, calculate the value, at cost, of Becker Department Stores’ ending inventory using the last-in, first-out (LIFO) retail method. Be sure to furnish supporting calculations. (c) Estimate the amount of shortage, at retail, that has occurred at Becker Department Stores during the year ended November 30, 2014. (d) Complications in the retail method can be caused by such items as (1) freight-in costs, (2) purchase returns and allowances, (3) sales returns and allowances, and (4) employee discounts. Explain how each of these four special items is handled in the retail inventory method.