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mid1key07f - FM 67 W I. l) Pension Expense/Minimum...

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Unformatted text preview: FM 67 W I. l) Pension Expense/Minimum Liability Entries 1991 x 1992 (D Service Cost. ch 4 @ Interest Cost 152®(ISZOX10%) 140®(1752x8%) “D Interest Offset a (11'5) %40x1.02x12%) ‘ ' (133) (1084x1.02x12%) n9 Actuarial G/L I (24mg ‘ (17)* - 5‘ Adoption 33 12) 33 (@0/12) ® 6, Amendment 0 ' _ 2 (’0/9) '7 Transition 0 a 0 x5 ‘3? ND 263 a (Q ‘ E53 W9 PBO© Ron? 1992 10L - 31L** 329G Total * Actuarial G/L Beg. Unrec. Act. G/L Less: Corridor - - 175(1752x10%) Excess - 154G ARSL 9 @47 Amortization 17G 7 '7 ** Return on Assets = Actual Ret. - Expected Ret'. = 84 -115 = 31L. r Wtfl" \ m W" M Pension ense/fi 246 263 - _ Pre " /AcCrued 36 57 J,/C,§sh . 210 320 ‘ P-M . (‘0 33’. @ (HE/LE (5 AA) 0% C3A9MWMNEWCGA4§ {haw WWW-flu" uu‘LHd LOCAwa m1in Sflcuehuow (iwm Cum»! oFflfz— N D MM SW‘TAAWW Qua/km \(W; (mum-m— gflowl HQ m Wt. 011% COMMHfiJ-HJ‘ {NCGMI WW1 . “(I GIG/Wt? Surety; pk. gum, «n, unrateoémgg 94M. Qawcr: WT S'DLL «WW (0 'Urm 9W GMPOMW V553 Lgmw @2 (MW—Mk (5th: (Line-Mmo m 0m, (I0 M?@ {Lng not me "tote ‘ _ , Car V160 (76°; r769 “ 11. Revenue Recognition: kw?” -' 0 1" U 4., . “Way A) Three A 1' Recogm s s not complete. 2. Recognize half of ember revenue from year 2 si lf of the earnings process . is complete (% of comtion). ' ’ ‘ 3. Recognize all member revenue I " 1mmediately because the earnings process is “virtually” complete. ' _ :1 r ' I -Fees are prepaid and estimable. “1 point in earnings process is ‘ a , _ o _ (rifle/,4, life A} 1 “languid [a {,g t 2. Advertisin the deliv venue: Recognize revenue as hits occur of the user to the web page) C) See der for answer. mefionstmcfion: 1) Profit (Loss) per year: _ 1995 , '1996 1997 Cum Costs _ 350,000 2 640 000 4 300,000 Total Est. Costs - 3,500,000 4,400,000 4,300,000 % Complete = ' / 10% 60% 100% .l/f‘ Contract Price ' 4,000,000 4,000,000 4 000,000 t“ Total Est. Costs ' ' - 3,500,000 ,. 4,400,000 - 4,30000 Total Profit 500,000 Ctr.) (400,000)(5) (300,000)@) * % Complete ’ x 10°46) x 100%*@ x 100% ) Profit to Date 50,000 (400,000) (300,000)@ 7 Profit Already Rec. - 0 — 50,0006) - (400,000) Current Profit 50,000 ~ (450,000) 100,000@//’ 0 to (l; ‘ (tr 3 *Since a loss is projected in 1996, the oggall loss must be reggnized immecflately: ,,,,,,,,,,,,,,, E, I .- W,/// l ((9009on ‘/ 3V0, ‘J (‘3', "C‘GQE (3"3‘13'" h" (“a k3fl¢<fié> 21 23c: )7é0;%,‘ ‘3 ‘3 1‘ IMF/T cm a 57294: t seat-om Eeeoeoeatia‘) /;///:\ itawf‘ was (or /- - = ) , ‘ Kffl.‘\/v-.l\’b i i, / ' MM, 0 0m / I 2) Balance Sheet Impact: 1995 1996 1997 , Cash 400,000 5‘7 2,900,000 6) 3,500,000 (D - (A? L5“ 00 . 7 - A/R “ 200,00 L (100,000) 0 500,000 (3 Q]? cu: 40000067 2240,0000) 4000,0000) Less: Billings (600,000)Q ' (2,800,000)@ (4,000,000) 0? y/«Net C1? (Liab) - ' (200,000) (560,000) 7 0 ' 3) Differences with complete ontract method: / "-1995: No profit would _ recognized; CIP would e $350,000 , , -1996: A loss of $400,0g3 would take place (not $450,000); the balancgieet would be ' I” b the same. I -1997: Same as %@5completion method. 4 Differences between % of com letion and com leted contract: P _ p -% of completion: 3 _ -Focus on earn gs process Nw Coalqu ‘tmw ' (LN “4-s— “UH: -Recognize profit during completion of project I -Provid-es better understanding of business gm mama Nut 'Prcceuamg @ -C0mpleted contract: ,5 l, - -Focus on revenue rechition rule " -No profit recognized until completion of project -Conservative 6) xéérégfifig // 5/9 /(‘\\>(,J V \. - UT “(full-7) (‘ _ 4 \ tau-.Efiia,i_ p»»//* qL i / Cl/r / CKH, (J3 ' 2,306.50» L (pflou'otw , \ Hit 30.9000) @bfiou, 0 a 0:) \ . \ \ \ x .— VMM’M .w/_#- 1"." h.) #1 _. @® CE Q (T W5 W Peuum Empwe Ta 9606611 flficmumk S‘va (5wf‘vfiflj C. mm" Fag-k m. pLu‘ITEAES(l—OYA«JT1’ Fausfiapmmfia 7 " I LONGCUx K ‘I @ ‘ M6, JMooTH ownrzmg: EKflF/Ugfi; fffiaagg 55 fmwymo mum 7mm ( c AJHA'L G. A Tu Am) + L‘QSSGJ Arm tkfiga‘m Cahmcr 7 11p _. _ 69 NE" “Mm?” 0m» “Ma fa u); DmDT ow. (Lear w 3M»; .i @ ® WHY Tm. Na‘a YUM. Tu CoNSaOExL 6“. w Mwmflwmw 7’@ ONLY (“L DUTg‘DR 0“ A’QCQMNIMR (142.16g LCu/UMDM) 0F mum Mm “PM?” 6) K— SuG STMTJA‘,’ $66.5 LL43 (Bug, {MA—DE. A/Jo EEESQHIMLL'IEZ .7 I @ no. MEMNO “I D?- WMH \3 MTV A_7TAPJ©\—E‘~.Af uJKLLm A ' ’5 SOHO QamA-cr LQLLW awowé T14: §Amcmcag To 1m: Agmwm (Immua Ur») Ga; (Limouwfa Dacf’fi‘i NoT GE‘s/C. (7) “(WW-AW: CMVLETL "TD MFLLLT m ‘AMMNT ma. fiffiufl( CAM/(NU A’ume Q/LHMDM. Mm 6) @l‘ C“>‘1’C‘CT “(9‘77 OF IM-mmn 0 Am" WJ-wflyfiflx—V Mramm 77%: W ./ if MMflM’flfii. {Tl—5 W506 fluF/T c473 (7515 } @Wfl f/‘VCE (“N—Lana; {J [Wang]: Raf-.16.} :ck '7 AWN“.- oTt‘gfigfrfia x- GA"); {Mm 7, EL ,3 war NM“ (guard War .1 ¥ .- . 3 (WV/71%? v) M?“ um (“magma Yeerx 6P°Z¢ ...
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mid1key07f - FM 67 W I. l) Pension Expense/Minimum...

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