Day: May 14, 2018

Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC)

Tutorial help on Excel^® and Word functions can be found on the Microsoft^® Office website. There are also additional tutorials via the web offering support for Office products.

Scenario: Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $270,000 in fixed costs currently spent. In addition, Mary is proposing a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary’s ideas but concerned about the effects these changes will have on the break-even point and the margin of safety.

Complete the following:

• Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s ideas are used.
• Compute the margin of safety ratio for current operations and after Mary’s changes are introduced (Round to nearest full percent).
• Prepare a CVP (Cost-Volume-Profit) income statement for current operations and after Mary’s changes are introduced.

Prepare a 700-word informal memo to management addressing Mary’s suggested changes.

• Explain whether Mary’s changes should be adopted. Why or why not? Analyze the above information (three bullet points above) and use this information to support your suggestion.

Show your work in Excel^®.

Complete calculations/computations using Excel^®.

Format your assignment consistent with APA guidelines.

You are the newly hired accountant for The Gift Shop. The owner has just received the December 31, 2008 bank statement and has asked you to prepare the monthly bank reconciliation.

• Write the procedure documentation for the monthly bank reconciliation process in a professional manner.
  • It will be the desktop guide used by others in the event of your absence to prepare the financial statements for The Gift Shop.
  • It may be in the form of a memorandum or as a numbered listing of items, depending on your individual preference.
• Prepare the monthly bank reconciliation for The Gift Shop based on the information provided.

Additional information needed for bank reconciliation preparation follows:

• Cash per the unadjusted trial balance is $12,675.
• Cash balance per the bank statement is $12,780.
• Check #115 has not cleared the bank. It was written for $645.
• A deposit of $1,000 cleared the bank but was not recorded in the general ledger.
• A check for $250 was found in the owner’s desk drawer.
• A deposit of $1,250 was taken to the bank after 2 p.m. on December 31, 2008 and was not posted by the bank until January 1, 2009.
• Errors were noted in the following checks:
  • Check #121 was recorded for $325 but cleared the bank as $320.
  • Check #125 was recorded for $585 but cleared the bank as $600.
  • Bank service charge reported on the bank statement $30.00

Must be done in 2-4 pages

In a recent news article located at http://www.nbcnews.com/business/economy/heres-where-your-federal-income-tax-dollars-go-f654971, NBC News reported that the U.S. Government spends $3.6 trillion per year to fund Social Security, Medicare, homeland defense and safety, education, transportation, and the interest on debt obligations. In spite of the services and benefits that the government provides, many taxpayers dread paying income taxes but consider them a necessary evil. Consequently, there is much debate about the inequities contained within the tax code, due to tax shelters and tax credits provided to some taxpayers which thereby increase the tax burden on others.
Using the Internet or Strayer Library, research one (1) country that has a zero income tax rate.
Write a four to five (4-5) page paper in which you:
Analyze the way in which the one (1) country that you have researched provides services and benefits to its citizens without collecting personal income taxes.
For the country that you have chosen, determine whether or not the U.S. could adopt their taxation model without reducing its total amount of revenue generated by collecting personal income taxes from individuals and business. Justify your response.
Suggest at least two (2) advantages and two (2) disadvantages of the U.S. adopting a zero income tax model. Provide a rationale for your response.
Create a proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model. In your response, provide specific recommendations concerning the following:
The proposed tax base.
Whether or not tax payers at certain income levels should be exempt from taxation.
The primary way in which the IRS would calculate the tax rate in order to ensure that the same level of tax revenue would still be collected.
The primary way in which your plan will achieve equity.
Speculate on the primary way in which the federal government could make up any shortfalls if it does not collect its targeted revenue from personal income taxes, and ascertain the most significant way in which the U.S. Department of the Treasury, through the IRS, can still adhere to its fiscal and monetary policies. Justify your response.
Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Examine the types of taxes imposed at the federal, state, and local levels; the federal tax formula; and the rules for arriving at personal and dependency exemptions.
Analyze the concepts of gross income and distinguish between the economic, accounting, and tax concepts of gross income and strategies to minimize gross income, maximize deductions, and minimize disallowance of deductions
Use technology and information resources to research issues in federal taxation.
Write clearly and concisely about federal taxation using proper writing mechanics.

Purpose of Assignment
Reconciling bank accounts is a good way to help maintain internal controls over cash. With time lags and posting errors it is easy for cash transactions to be omitted, recorded in a different accounting period, or reflect incorrect amounts. This assignment with give you practical experience in reconciling the cash balance as noted on the company books to the bank’s records.
Assignment Steps
Resources: Financial Accounting: Tools for Business Decision Making
Scenario: Daisey Company is a very profitable small business. It has not, however given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and book-keeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations.
The balance per the bank statement on October 31, 2017, was $18,380. Outstanding checks were No. 62 for $140.75, No. 183 for $180, No. 284 for $253.25, No. 862 for $190.71, No. 863 for $226.80, and No. 864 for $165.28. Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Daisey Company by the bank on October 25.
This memorandum has not been recorded by Daisey.
The company’s ledger showed one Cash account with a balance of $21,877.72. The balance included undepositied cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,795.51. He then prepared the following bank reconciliation in an effort to conceal his theft of cash:
Cash balance per books, October 31 $21,877.72
Add: Outstanding checks
No. 862 $190.71
No. 863 226.80
No. 864 165.28 482.79
22,360.51
Less: Undeposited receipts 3,795.51
Unadjusted balance per bank, October 31 18,565.00
Less: Bank credit memorandum 185.00
Cash balance per bank statement, October 31 $18,380.00
Prepare a 1,050-word bank reconciliation report (hint: deduct the amount of the theft from the adjusted balance per books) including the following:
Indicate the three ways that Bret attempted to conceal the theft and the dollar amount involved in each method.
What principles of internal control were violated in this case?

The Beach House Accounting firm needs to adjust its books at the end of the year. The firm’s year end is December 31st. The accountant noted the following transactions:

1. On June 1st, the firm prepaid one year of its rent.
2. On July 1st, the firm received a payment from a client in the amount of $5,000. The client paid $5,000 as a prepayment of the current year accounting fees. At year end, the firm had only completed 75% of the current year’s accounting services for the client.

At December 31st, how much rent expense should the firm record under the cash basis and under the accrual basis? Also, at December 31st, how much revenue should the firm record from the client under the cash basis and under the accrual basis? Explain your answers.

Which basis of accounting more clearly reflects the income and expense of the organization? Why? How might the method of reporting skew the true picture of the year’s record?

Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording business transactions. These activities include computing costs and efficiency gains from new technologies, participating in strategies for mergers and acquisitions, quality management, developing and using information systems to track financial performance, tax strategy, and health care benefits management.

Use the Internet or the Strayer Online database to research career options within the accounting field and accounting job postings in your local area to respond to the questions in the assignment.

Write a one to two (1-2) page paper in which you:

1. Describe at least two (2) career options someone with an accounting education can pursue. Be sure to reference sources such as the Bureau of Labor Statistics and the American Institute of Certified Public Accountants.
2. Describe one (1) researched accounting position, and explain the essential skills that would make a candidate successful in the position. Articulate the primary manner in which the researched accounting positions could add value to the company seeking candidates.
3. Use at least two (2) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.
4. Format your assignment according to the following formatting requirements:
   • Typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
   • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page is not included in the required page length.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.

5-35 Comprehensive Cash Budget (CMA adapted) (LO 4) GrowMaster Products,

a rapidly growing distributor of home gardening equipment, is formulating its plans for

the coming year. Carol Jones, the fi rm’s marketing director, has completed the following sales

forecast.

Month Sales Month Sales

January $ 900,000 July $1,500,000

February $1,000,000 August $1,500,000

March $ 900,000 September $1,600,000

April $1,150,000 October $1,600,000

May $1,250,000 November $1,500,000

June $1,400,000 December $1,700,000

Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for

preparing the cash fl ow projection. He has gathered the following information.

• All sales are made on credit.
• GrowMaster’s excellent record in accounts receivable collection is expected to continue,

with 60 percent of billings collected in the month after sale and the remaining 40 percent

collected two months after the sale.

• Cost of goods sold, GrowMaster’s largest expense, is estimated to equal 40 percent of sales

dollars. Seventy percent of inventory is purchased one month prior to sale and 30 percent

during the month of sale. For example, in April, 30 percent of April cost of goods sold is

purchased and 70 percent of May cost of goods sold is purchased.

• All purchases are made on account. Historically, 75 percent of accounts payable have been

paid during the month of purchase, and the remaining 25 percent in the month f ollowing

purchase.

• Hourly wages and fringe benefi ts, estimated at 30 percent of the current month’s sales, are

paid in the month incurred.

• General and administrative expenses are projected to be $1,550,000 for the year. A breakdown

of the expenses follows. All expenditures are paid monthly throughout the year, with

the exception of property taxes, which are paid in four equal installments at the end of each

quarter.

Salaries and fringe benefi ts $ 324,000

Advertising 372,000

Property taxes 136,000

Insurance 192,000

Utilities 180,000

Depreciation 346,000

Total $1,550,000

• Operating income for the fi rst quarter of the coming year is projected to be $320,000. Grow-

Master is subject to a 40 percent tax rate. The company pays 100 percent of its estimated

taxes in the month following the end of each quarter.

• GrowMaster maintains a minimum cash balance of $50,000. If the cash balance is less than

$50,000 at the end of the month, the company borrows against its 12 percent line of credit

in order to maintain the balance. All borrowings are made at the beginning of the month,

and all repayments are made at the end of the month (in increments of $1,000). Accrued

interest is paid in full with each principal repayment. The projected cash balance on April 1

is $50,000.

 

Required

1. Prepare the cash receipts budget for the second quarter.
2. Prepare the purchases budget for the second quarter.
3. Prepare the cash payments budget for the second quarter.
4. Prepare the cash budget for the second quarter.

 

 

6-30 Comprehensive flexible budgets and variance analysis (LO 1, 2, 3, 4, 5,

6, 7, 8) Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk.

She smiled as her eyes went straight to the bottom line of the report and saw the favorable

variance for operating income, confirming her decision to push the workers to get those last

250 cases off the production line before the end of the month.

But as she glanced over the rest of numbers, Lexi couldn’t help but wonder if there were

errors in some of the line items. She was puzzled how most of the operating expenses could be

higher than the budget since she had worked hard to manage the production line to improve

efficiency and reduce costs. Yet the report, shown below, showed a different story.

Actual Budget Variance

Cases produced and sold 10,250 10,000 250 F

Sales revenue $1,947,500 $1,870,000 $77,500 F

Less variable expenses

Direct material 561,000 550,000 11,000 U

Direct labor 267,650 260,000 7,650 U

Variable manufacturing overhead 285,012 280,000 5,012 U

Variable selling expenses 93,130 90,000 3,130 U

Variable administrative expenses 41,740 40,000 1,740 U

Total variable expenses 1,248,532 1,220,000 28,532 U

Contribution margin 698,968 650,000 48,968 F

Less fi xed expenses

Fixed manufacturing overhead 111,000 110,000 1,000 U

Fixed selling expenses 69,500 70,000 (500 F)

Fixed administrative expenses 129,800 130,000 (200 F)

Total fixed expenses 310,300 310,000 300 U

Operating income $ 388,668 $ 340,000 $48,668 F

Lexi picked up the phone and called Irvin. “Irvin, I don’t get it. We beat the budgeted operating

income for the month, but look at all the unfavorable variances on the operating costs. Can you

help me understand what’s going on?” “Let me look into it and I’ll get back to you,” Irvin replied.

Irvin gathered the following additional information about the month’s performance.

• Direct materials purchased: 102,000 pounds at a total of $561,000
• Direct materials used: 102,000 pounds
• Direct labor hours worked: 26,500 at a total cost of $267,650
• Machine hours used: 40,950

Irvin also found the standard cost card for a case of product.

Standard Price Standard Quantity Standard Cost

Direct materials $5.50 per pound 10 pounds $ 55

Direct labor $10.00 per DLH 2.6 DLH 26

Variable overhead $7.00 per MH 4 MH 28

Fixed overhead $2.75 per MH 4 MH 11

Total standard cost per case $120

Required

1. Calculate the direct materials price variance for the month.
2. Calculate the direct materials quantity variance for the month.
3. Calculate the direct labor rate variance for the month.
4. Calculate the direct labor efficiency variance for the month.
5. Calculate the variable overhead spending variance for the month.
6. Calculate the variable overhead efficiency variance for the month.
7. Calculate the fixed overhead spending variance for the month.
8. Prepare a performance report that will assist Lexi in evaluating her efforts to control

production costs.

1. Based on your review of the performance report you prepared, do you think Lexi did a

good job of controlling production expenses during the month? Why or why not?

Review Whole Foods Market, Inc’s 2010 Annual report, company information and investor information(see the link: Whole Foods Market, Inc. Investor Relations in the webilography) and write a 5-7 page paper following APA guidelines which addresses the following:
Summarize the company’s financial performance for 2010. Do you think they satisfied stockholder expectations? Why or why not?
Explain three business risks or threats that might threaten Whole Foods ability to accomplish their financial goals for the next 3 years. Use examples and references to support your response.
Describe three examples of control activities Whole Foods Market, Inc. could use to minimize these risks.
What is your overall impression of Whole Foods Market, Inc.’s annual report? Is it a financial accounting document or a managerial accounting document? Who is the target audience? Did the annual report present a positive or negative image of the company? Provide support for your responses.
Use the following file naming convention: LastnameFirstInitial_M3_A3.doc. For example, if your name is John Smith, your document will be named SmithJ_M3_A3.doc.

Whole Foods Market, Inc.’s 2010 Annual Report: http://investor.wholefoodsmarket.com/investors/default.aspx

Introduction

In order for organisms to grow, repair, maintain, and reproduce, cells undergo cell division. Sometimes, cells uncontrollably divide, resulting in cancer. In the first part of the Cancer and Cell Division Lab, you will learn about normal cell division and will compare it to cell division that occurs in cancer cells. You will then visit a website to find out more information about cancer. You will learn why it occurs, why it kills, and new treatments that are being tested and used to treat cancer.

Objectives

Explain the process of cancer, the effects on the human body, the various types, and the risk factors involved.
Explain various treatments for cancer.
Explain the various stages of mitosis.

 

 

 

Materials

No extra materials will be required to complete this lab other than internet service.

Directions

Go to the following website:http://www.mhhe.com/biosci/genbio/virtual_labs/BL_23.html_
Follow the steps under the PROCEDURE section.
Type all answers directly on the data sheet.
Select Save As, and save this document using your last name and student ID as the file name.
Upload the data sheet as a .doc, .docx, or .rtf file when you are finished.

While viewing the video, answer the following questions. Total: 8 points

1.In which stage of cell division is the DNA copied? (4 points)

2.During which stage of mitosis do the chromosomes line up in the middle? (4 points)

After viewing the video, click on the Information tab in the bottom right corner. Answer the following questions. Total: 12 points

1.In which of the cancer types listed, are males not at risk of developing? (4 points)

2. Cigarette smoke is a major risk factor for which type of cancer listed? (4 points)

3 The risk for which type of cancer increases after the age of 55? (4 points)

Continue following the directions under the PROCEDURE section, and complete the following table. Total: 40 points

Interphase
Prophase
Metaphase
Anaphase
Telophase
%of Cell Dividing
%of Cells at rest
Normal Lungs

Cancerous Lungs

Normal Stomach

Cancerous Stomach

Normal Ovary

Cancerous Ovary

Continue following the directions under the PROCEDURES section and answer the following questions. Total: 12 points

1.Based on your data and observations, what are some of the differences between normal cells and cancer cells? (4 points)

2.Which type of cancer shows the most aggressive growth? Explain your answer. (4 points)

When studying cell division in tissue samples, scientists often calculate a mitotic index, which is the ratio of dividing cells to the total number of cells in the sample. Scientists often calculate the mitotic index to compare the growth rates of different types of tissue.
3.Which type of tissue would have a higher mitotic index, normal tissue or cancerous tissue? Explain. (4 points)

http://www.cancer.org

Click on Get Expert Information. Scroll down and click Cancer Basics. Read the sections Understanding Cancer, Cancer in the United States and Finding Cancer Information. After reading each of the Cancer Basics sections, go back to the Get Expert Information page and read about each major type of cancer: breast cancer, colon and rectal cancer, lung cancer, prostate cancer and skin cancer. Answer the questions below. Total: 28 points

How many people in the US get cancer each year? (4 points)

What causes cancer? (4 points)

Since there are many different types of cancer, how is cancer named? (4 points)
List two signs or symptoms of breast cancer. (4 points)

Can males develop breast cancer? (4 points)

What is the most common type of cancer? (4 points)

List two ways you could get involved and help fight against cancer. (4 points)

Listed below are several summary statements from the 2010 Census report:
The official poverty rate in 2010 was 15.1 percent—up from 14.3 percent in 2009. This was the third consecutive annual increase in the poverty rate. Since 2007, the poverty rate has increased by 2.6 percentage points, from 12.5 percent to 15.1 percent.
In 2010, 46.2 million people were in poverty, up from 43.6 million in 2009—the fourth consecutive annual increase in the number of people in poverty.
Between 2009 and 2010, the poverty rate increased for non-Hispanic Whites (from 9.4 percent to 9.9 percent), for Blacks (from 25.8 percent to 27.4 percent), and for Hispanics (from 25.3 percent to 26.6 percent). For Asians, the 2010 poverty rate (12.1 percent) was not statistically different from the 2009 poverty rate.
The poverty rate in 2010 (15.1 percent) was the highest poverty rate since 1993 but was 7.3 percentage points lower than the poverty rate in 1959, the first year for which poverty estimates are available.
The number of people in poverty in 2010 (46.2 million) is the largest number in the 52 years for which poverty estimates have been published.
Between 2009 and 2010, the poverty rate increased for children under age 18 (from 20.7 percent to 22.0 percent) and people aged 18 to 64 (from 12.9 percent to 13.7 percent), but was not statistically different for people aged 65 and older (9.0 percent).2
Source: http://www.census.gov/hhes/www/poverty/data/incpovhlth/2010/highlights.html
Tasks:
Select any four of the six summary statements and explain in detail the significance and possible causes of each item.
Be sure to use the economic concepts and polices discussed in your textbook where applicable.
Identify possible economic policies that may explain these items and/or those which could be used to deal with the problems or situations described.

Prepare a 5 page Microsoft Word document that addresses the above tasks and meets APA standards.
Include a summary section in your report that contains 5-7 bullet points identifying your major findings or conclusions of your paper.
All submissions must be original and all resources must be properly acknowledged