Question & Answer

The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as: 1. Operating activity—add to net income. 2. Operating activity—deduct from net income. 3. Investing activity. 4. Financing activity. 5. Reported as significant noncash activity. The transactions are as follows. (a) Issuance of common stock. (h) Payment of cash dividends. (b) Purchase of land and building. (i) Exchange of furniture for office equipment. (c) Redemption of bonds. (j) Purchase of treasury stock. (d) Sale of equipment. (k) Loss on sale of equipment. (e) Depreciation of machinery. (l) Increase in accounts receivable during the year. (f) Amortization of patent. (m) Decrease in accounts payable during the year. (g) Issuance of bonds for plant assets.

Planning} Yong recently paid his accountant $10,000 for elaborate tax planning strategies that exploit the timing strategy.  Assuming this is an election year and there could be a power shift in the White House and Congress, what is a potential risk associated with Yong’s strategies?

In a chemical blanking operation, stock thickness of the aluminum sheet is 0.015 in. The pattern to be cut out of the sheet is a hole pattern, consisting of a matrix of 0.100 in diameter holes. If photochemical machining is used to cut these holes, and contact printing is used to make the resist (maskant) pattern, determine the diameter of the holes that should be used in the pattern.

Do tax-exempt organizations pay tax on dividends received from C corporations? Do tax-exempt organizations pay tax on business income earned? Explain.

1.    : What personal skills do you need to keep your financial backers feeling confident in your new business? Which skills are most useful when you’re dealing with more informal financial sources, such as family and friends, versus receiving funds from stockholders, a bank, or a venture capital firm? Would these considerations affect your financing strategy?

How does anodizing differ from other conversion coatings?

{Planning}Tesha works for a company that pays a year-end bonus in January of each defer the bonus income.  Assume Congress recently passed tax legislation that decreases individual tax rates as of next year.  Does this increase or decrease the benefits of the bonus deferral this year?  What if Congress passed legislation that increased tax rates next year?  Should Tesha ask the company to change its policy this year?  What additional information do you need to answer this question?year (instead of December of the preceding year) to allow employees to

Name some products that represent microsystem technology.

Wilco Corporation has the following account balances at December 31, 2014. Common stock, $5 par value $ 510,000 Treasury stock 90,000 Retained earnings 2,340,000 Paid-in capital in excess of par—common stock 1,320,000 Prepare Wilco’s December 31, 2014, stockholders’ equity section.

Balanced scorecard; strategy map and implementation Terence Smythe, a veterinariant, decided to join a small group of vets so that he no longer has to be on call every night. Practice members share the responsibility of emergencies with other members of the group. In the past, Terrence differentiated his practice by specialising in the treatment of large farm. None of the other vets specialise in large farm animals, but all of them treat some farm animals. Terrences’s son just finished an accounting degree and recommended that the vets group consider implementing a balanced scorecard as they develop the policies and practices for the new group.                                           Required (a)     Explain what each of the four perspectives of the balanced scorecard mean in the context of a vets group. (b)     Recommend several methods the group could use to assess a performance objective of patient satisfaction. (c)     Recommend two measures for each of the four perspectives for the vets group. Explain your recommendations. (d)     Construct a strategy map to reflect the links between the measures selected. Briefly discuss the links.

Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship.  In late December he performed $20,000 of legal services for a client.  Manny typically requires his clients to pay his bills immediately upon receipt.  Assume Manny’s marginal tax rate is 40 percent this year and next year, and that he can earn an after-tax rate of return of 12 percent on his investments.  Should Manny send his client the bill in December or January?

What are some of the principal applications of cemented carbides, such as WC-Co?

Within the current liabilities section, how do you believe the accounts should be listed? Defend your position.

Dakota Conrad owns a parcel of land he would like to sell. Describe the circumstances in which the sale of the land would generate §1231 gain or loss, ordinary gain or loss, or capital gain or loss. Also, describe the circumstances under which Dakota would not be allowed to deduct a loss on the sale.

Balanced scorecard, financial and non-financial measures Dyggur Equipment manufactures and sells heavy equipment used in construction and mining. Customers are contractors who want reliable equipment at a low cost. The entity’s strategy is to provide reliable products at a price lower than its competitors. Management wants to emphasise quick delivery and quick turnaround when equipment needs repair or service so that contractors are not without their equipment often or for long. Dyggur is considering the following performance measures for use in its balanced scorecard.   Required (a)  Categorise each of the following potential balanced scorecard measures as             follows: F    Financial C   Customer I     Internal business process L   Learning and growth   (a)   Manufacturing cycle time per product (b)   Market share (c)   Average ratings on customer satisfaction surveys (d)   Average cost per unit (e)   Economic value added (f)   Percentage of receivables collected (g)   Dollar value of warranty work (h)   Time between order and delivery (i)    Time it takes to repair returned equipment (j)    Number of focus groups for new products (k)   Number of new uses for current products (l)    Number of times new technology is applied to current products (m)  Number of product change suggestions from sales (n)   Number of engineering change orders to improve manufacturing cycle (o)   Revenue growth (p)   Employee training hours (q)   Number of quality improvement suggestions from employees (r)   Number of new customers (s)   Number of repeat customers (t)    Employee turnover rate (u)   Defect rates for manufacturing production (v)   Percentage of error free-rates in: (i)   purchasing (ii)  billing (iii) customer record keeping    (b) Explain how Dyggur would use the scorecard solely as a diagnostic tool.

What is the freeze drying process used to make certain new ceramic powders?

A shaft made of aluminum is 40.0 mm in diameter at room temperature (21°C). Its coefficient of thermal expansion = 24.8 x 10-6 mm/mm per °C. If it must be reduced in size by 0.20 mm in order to be expansion fitted into a hole, determine the temperature to which the shaft must be cooled.

Name some of the abrasive operations available to achieve very good surface finishes

Like mutual funds, commercial banks and stock-owned savings institutions sell shares, but the proceeds received by mutual funds are used in a different way. Explain. (LO1)

n a turning operation on stainless steel with hardness = 200 HB, the cutting speed = 200 m/min, feed = 0.25 mm/rev, and depth of cut = 7.5 mm. How much power will the lathe draw in performing this operation if its mechanical efficiency = 90%. Use Table 21.2 to obtain the appropriate specific energy value

Jada (age 53) and Elijah (age 60) are married, and both are self-employed. In 2024, they participate in a health insurance plan with a $3,000 annual deductible and out-of-pocket maximum of $9,000. The only other health plan they have is a vision insurance plan. Are they eligible to contribute to a health savings account? Why or why not. If so, what is their maximum HSA contribution and deduction?

What are some of the mechanisms by which the alloying elements other than carbon strengthen steel?

Assume Rafael can earn an 8 percent after-tax rate of return.  Would he prefer $1,000 today or $1,500 in five years?    Answer:

Assume TDW Corporation’s (calendar-year-end) has 2024 taxable income of $950,000 for purposes of computing the §179 expense. The company acquired the following assets during 2024:

Recall from Chapter 13 that Hincapie Co. (a specialty bike-accessory manufacturer) is expecting growth in sales of some products targeted to the low-price market. Hincapie is contemplating a preferred stock issue to help finance this expansion in operations. The company is leaning toward participating preferred stock because ownership will not be diluted, but the investors will get an extra dividend if the company does well. The company management wants to be certain that its reporting of this transaction is transparent to its current shareholders and wants you to research the disclosure requirements related to its capital structure. Instructions If your school has a subscription to the FASB Codification, go to http://aaahq.org/ascLogin.cfm to log in and prepare responses to the following. Provide Codification references for your responses. (a) Identify the authoritative literature that addresses disclosure of information about capital structure. (b) Find definitions of the following: (1) Securities. (2) Participation rights. (3) Preferred stock. (c) What information about securities must companies disclose? Discuss how Hincapie should report the proposed preferred stock issue.