The following balance sheet information is provided for Greene Company for Year 2: Assets Cash$7000 Accounts receivable 13,150 Inventory 15,500 Prepaid expenses 2300 Plant and equipment, net of depreciation 20,200 Land 14,100 Total assets$72,250 Liabilities and Stockholders' Equity Accounts payable$3210 Salaries payable 7530 Bonds payable (Due in ten years) 15,500 Common stock, no par 13,000 Retained earnings 33,010 Total liabilities and stockholders' equity$72,250 What is the company's quick (acid-test) ratio? (Round your answer to 2 decimal places.)
<img src="https://sciemce.com/files/4/ppg__10830191709__f1q28g1.jpg" alt="" style="vertical-align: 0.0px;" height="387" width="594" /><img src="https://sciemce.com/files/4/ppg__10830191709__f1q28g2.jpg" alt="" style="vertical-align: 0.0px;" height="404" width="612" />Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 4 years with no salvage value at the end of the 4 years. Ataxia's internal rate of return on this equipment is 6%. Ataxia's discount rate is also 6%. The payback period on this equipment is closest to (Ignore income taxes.):Use Exhibit 13B-1 and Exhibit 13B-2 above to determine the appropriate discount factor(s).
Vervet County levies a real property tax based on the following schedule. RateAssessed value3%$-0- to $250,000+ 1%$250,001 and above Which of the following statements is false?
One company's practice is to provide bonuses to salespeople who exceed their sales targets. Which of the following advantages of budgeting enables the company to establish its recognition program?
The board of directors for a nongovernmental not-for-profit organization decided to designate $20,000 each year for the next three years to fund a special research project it was planning to conduct at the end of the three-year period. How would these board-designated resources be reported on the statement of financial position?
Jay has a tax basis of $14,000 in his partnership interest at the beginning of the partnership tax year. The following amounts of partnership debt were allocated to Jay and are included in his beginning-of-the-year tax basis: (1) recourse debt-$3,000, (2) qualified nonrecourse debt-$1,000, and (3) nonrecourse debt-$500. There were no changes to the debt allocated to Jay during the tax year. If Jay is allocated a $15,000 loss for the current year, how much of the loss will be suspended under the tax basis and at-risk limitations?
The Simon Company acquired equipment three years ago at a cost of $125,000. Two years later the equipment sustained impairment in value. At the time of the impairment, the fair value of the equipment was $25,000 and the carrying value was $50,000. The entry to record the impairment would be:
Sail Away, a cruise industry magazine, collected $480,000 in subscription revenue in May. Each subscriber will receive an issue of the magazine for each of the next 12 months, beginning with the June issue. The company uses the accrual basis of
Using the T-account approach to preparing the statement of cash flows, an increase in Accounts Payable would appear on the debit side of the Cash account.
In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was$52,000 Accounts payable decreased by 18,000 Accounts receivable increased by 25,000 Inventories increased by 5,000 Cash dividends paid were 14,000 Depreciation expense was 20,000 Net cash provided by operating activities was:
Moscone Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 78,000 labor-hours. The estimated variable manufacturing overhead was $9.99 per labor-hour and the estimated total fixed manufacturing overhead was $985,920.Required:Compute the company's predetermined overhead rate.
As part of effective IT planning in systems development life cycle, a return on investment (ROI) calculation may be performed as part of the economic feasibility analysis. Often, many of the benefits from a new information system may be intangible benefits (e.g. system is easier to use or system enhances customer service, etc.) that are hard to quantify in an income statement. What are some intangible benefits of a state-of-the-art course registration system at your college or university?
Easton Company makes and sells scooters. Easton incurred the following costs in its most recent fiscal year: Cost Items Appearing on the Income StatementMaterials cost ($10 per unit)Depreciation on manufacturing equipmentCompany president's salarySalaries of administrative personnelLabor cost ($4 per unit)Research and development costsAdvertising costs (150,000 per year)Real estate taxes on factoryShipping and handling ($0.15 per unit)Inspection costsEaston can currently purchase the scooters it makes from Weston Company. If the company purchases the scooters, Easton would still continue to use its own logo, sales staff, and advertising programs. If Easton outsources the scooters to Weston, which of the following costs would be relevant to the outsourcing decision?
Ryner Corporation is considering three investment projects: S, T, and U. Project S would require an investment of $20,000, Project T of $69,000, and Project U of $83,000. No other cash outflows would be involved. The present value of the cash inflows would be $23,200 for Project S, $77,970 for Project T, and $94,620 for Project U. Rank the projects according to the profitability index, from most profitable to least profitable. (Ignore income taxes.)
Which of the following must be proven by the plaintiff in a case against a CPA under the Section 11 liability provisions of the Securities Act of 1933?