Question & Answer

Cruise Industries purchased $10,800 of merchandise on February 1, 2014, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,500 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. Instructions (a) Assuming that Cruise uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (b) Assuming that Cruise uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (c) At what amount would the purchase on February 1 be recorded if the net method were used?

Explain how finance companies benefit from offering consumers a credit card. (LO2)

Assume that the economy is at potential output and the natural rate of unemployment and that inflation is at the target rate set for the central bank by the government. In each of the following scenarios apply the integrated EAPC, DAD/DAS and IS/MP framework to analyse the economy’s adjustment path. (a) A temporary fall in aggregate demand under the assumption that inflationary expectations remain anchored. (b) A temporary fall in aggregate demand where inflationary expectations are based on the rate of inflation in the previous period. (c) A temporary positive supply shock where inflationary expectations are based on the rate of inflation in the previous period.

The financial statements of ConAgra Foods, Inc.’s 2012 annual report disclose the following information. (in millions) May 27, 2012 May 29, 2011 May 30, 2010 Inventories $1,870 $1,803 $1,598 Fiscal Year 2012 2011 Net sales $13,263 $12,303 Cost of goods sold 10,436 9,390 Net income 474 818 Instructions Compute ConAgra’s (a) inventory turnover and (b) the average days to sell inventory for 2012 and 2011.

Define nominal surface.

What is a programmable logic controller?

Would redistributing incomes from the rich to the poor reduce the overall problem of scarcity?

Clydesdale Corporation has a cumulative temporary difference related to depreciation of $580,000 at December 31, 2014. This difference will reverse as follows: 2015, $42,000; 2016, $244,000; and 2017, $294,000. Enacted tax rates are 34% for 2015 and 2016, and 40% for 2017. Compute the amount Clydesdale should report as a deferred tax liability at December 31, 2014.

There are 19 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Eachcorrect answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage score on the quiz is based on the total number of correct answers. 5.1 A tolerance is which one of the following: (a) clearance between a shaft and a mating hole, (b) measurement error, (c) total permissible variation from a specified dimension, or (d) variation in manufacturing? 5.2 Which of the following two geometric terms have the same meaning: (a) circularity, (b) concentricity, (c) cylindricity, and (d) roundness? 5.3 A surface plate is most typically made of which one of the following materials: (a) aluminum oxide ceramic, (b) cast iron, (c) granite, (d) hard polymers, or (e) stainless steel? 5.4 An outside micrometer would be appropriate for measuring which of the following (two correct answers): (a) hole depth, (b) hole diameter, (c) part length, (d) shaft diameter, and (e) surface roughness? 5.5 In a GO/NO-GO gage, which one of the following best describes the function of the GO gage: (a) checks limit of maximum tolerance, (b) checks maximum material condition, (c) checks maximum size, (d) checks minimum material condition, or (e) checks minimum size? 5.6 Which of the following are likely to be GO/NO-GO gages (three correct answers): (a) gage blocks, (b) limit gage, (c) master gage, (d) plug gage, and (e) snap gage? 5.7 Surface texture includes which of the following characteristics of a surface (three correct answers): (a) deviations from the nominal surface, (b) feed marks of the tool that produced the surface, (c) hardness variations, (d) oil films, and (e) surface cracks? 5.8 Surface texture is included within the scope of surface integrity: (a) true or (b) false? 5.9 Thermal energy is normally associated with which of the following changes in the altered layer (three best answers): (a) cracks, (b) hardness variations, (c) heat affected zone, (d) plastic deformation, (e) recrystallization, or (f) voids? 5.10 Which one of the following manufacturing processes will likely result in the best surface finish: (a) arc welding, (b) grinding, (c) machining, (d) sand casting, or (e) sawing? 5.11 Which one of the following manufacturing processes will likely result in the worst surface finish: (a) cold rolling, (b) grinding, (c) machining, (d) sand casting, or (e) sawing?

Using IS/LM/BP analysis, trace through the effect of (a) a deflationary fiscal policy and (b) a deflationary monetary policy under (i) a fixed exchange rate; (ii) a free-floating exchange rate.

Monat Company has grown rapidly since its founding in 2004. To instill loyalty in its employees, Monat is contemplating establishment of a defined benefit plan. Monat knows that lenders and potential investors will pay close attention to the impact of the pension plan on the company’s financial statements, particularly any gains or losses that develop in the plan. Monat has asked you to conduct some research on the accounting for gains and losses in a defined benefit plan. 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) Briefly describe how pension gains and losses are accounted for. (b) Explain the rationale behind the accounting method described in part (a). (c) What is the related pension asset or liability that will show up on the balance sheet? When will each of these situations occur?

Why is the price inelasticity of demand for private car transport a problem when formulating a policy for the reduction of traffic congestion? What could be done to change the price elasticity of demand in a desirable direction?

How do money market funds differ from other types of mutual funds in terms of how they use the money invested by shareholders? Which securities do MMFs invest in most often? How can an MMF accommodate shareholders who wish to sell their shares when the amount of proceeds received from selling new shares is less than the amount needed to cover the withdrawals? (LO3)

What layer material is produced by thermal oxidation in IC fabrication?

0 A riser in the shape of a sphere is to be designed for a sand casting mold. The casting is a rectangular plate, with length = 200 mm, width = 100 mm, and thickness = 18 mm. If the total solidification time of the casting itself is known to be 3.5 min, determine the diameter of the riser so that it will take 25% longer for the riser to solidify

How are tax credits and tax deductions similar?  How are they dissimilar?

Assume that you are looking for a job and are offered two. One is more enjoyable, but pays less. How would you make a rational choice between the two jobs?

When a U.S. taxpayer pays income taxes to a foreign government, what options does the taxpayer have when determining how to treat the expenditure on their U.S. individual income tax return?

The Volcker Rule is intended to prevent banks from engaging in proprietary trading. Write a short essay offering your opinion on whether banks should be allowed to engage in proprietary trading.

Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2014. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2014, Bogues uses the equipment for 525 hours and the equipment produces 1,000 units. Instructions Compute depreciation expense under each of the following methods. Bogues is on a calendar-year basis ending December 31. (a) Straight-line method for 2014. (b) Activity method (units of output) for 2014. (c) Activity method (working hours) for 2014. (d) Sum-of-the-years’-digits method for 2016. (e) Double-declining-balance method for 2015.

Explain the circumstances under which an increase in pensions and child benefit would (a) increase national income; (b) leave national income unaffected; (c) decrease national income.

Compare and contrast computing the depreciation deduction for tangible personal property versus computing the depreciation deduction for real property under both the regular tax and alternative tax systems.

{Research} Last year Acme paid Ralph $15,000 to install a new air-conditioning unit at its headquarters building.  The air conditioner did not function properly, and this year Acme requested that Ralph return the payment.  Because Ralph could not repair one critical part in the unit, he refunded the cost of the repair, $5,000, to Acme. a.       Is Ralph required to include the $15,000 payment he received last year in his gross income from last year? b.       What are the tax implications of the repayment if Ralph was in the 35 percent tax bracket when he received the $15,000 payment from Acme, but was in the 28 percent tax bracket when he refunded $5,000 to Acme? c.       How would you answer part b. if Ralph refunded $2,500 to Acme and not $5,000?

List the basic steps in the traditional ceramics processing sequence.

This year Jorge received a refund of property taxes that he deducted on his tax return last year. Jorge is not sure whether he should include the refund in his gross income. What would you tell him?