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Question: Nakashima Gallery had the follo
Your objective is to provide an overview of the Clarity Project.
According to the Journal of Accountancy:
The AICPA Auditing Standards Board (ASB) has aligned its agenda with the International
Auditing and Assurance Standards Board (IAASB) in the Clarity
Business Law questionlfcontract law
Ken, a research chemist, has been promised a fellowship with a stipend of $10,000 to do research on
synthetic fuel oil. Under the terms of the fellowship, Ken is free to use the money as he sees fit. Ken
decides to buil
Chap. 1 Overview of Corporate Finance
Corporate Finance the study of the relationship between business decisions and the value of the
stock in business.
Financial Management Decisions
The financial manager must be concerned with three basi
E.J. Dionne: Why do Americans hate politics?
Agents of socialization
Causes of political polarization
Chapter 7 Interest Rates and Bond Valuation
7.1 Bonds and Bond Valuation
When a corporation or government wishes to borrow money from the public on a long-term basis. It
usually does so by issuing or selling debt securities that are generically called bon
Politicsis about who gets what, when and how; a process of determining how power
and resources are distributed in society without recourse to violence.
Powerthe ability to get other to do what you want.
Power is the ability to get people to do what they
People are risk averse, they will only put money at risk if they expect to earn more.
The required return depends on the risk of the investment. The greater the risk, the greater is the
Two central lessons from the study of market history
Chapter 8 Stock Valuation
Common Stock Valuation
A share of common stock is more difficult to value than a bond for three reasons:
1. Promised cash flows are not usually known in advance
2. Common stock has no maturity
3. There is no way to easily observe
Understanding Work Teams
Why have teams become so popular?
Flexible and responsive to change
Can quickly assemble, deploy, refocus, and disband
Effective means for management to
facilitate employee participation in operating d
The word capital LTD
The issue at hand: Valuing fixed assets What is it worth
New project cost $100m.
Q: Should we go for it? Is it worth > $100m? Yes
10. Making Capital Investment Decisions
1. Project Cash Flows
The effect of taking a project is to change the firms overall cash flows today and in the future. To
evaluate a proposed investment, we must consider these changes in the firms cash flows and t
1. What fixed monthly cost and hourly rate should George use to estimate electricity expense
for the upcoming year?
Variable Cost per hour:
($7200 - $4200) / (1200 - 300)
= $3000 / 900
= $3.33 Per hour
$7200 - (1200 * $3.33)
= $7200 - $4000
Schedule of Cost of Goods Manufactured
Cost of Goods Manufactured Schedule
For the Year Ending December 31, 2001
Raw Materials Inventory, Jan. 1
Purchases of Raw Materials
1. Calculate the unit COGS under both absorption and variable costing.
Direct Material- Absorption cost, $10.00 Variable Cost $10.00
Direct Labor- Absorption cost, $5.00 Variable Cost $5.00
Variable Manufacturing overhead- Absorption cost, $3.13 Variable
Direct labor Costs
Total estimated overhead costs are $240,000. Overhead cost allocated to the machining activity cost
pool is $140,000, and $100,000 is allocated
a. How many VCRs must be sold each year for the firm to break even?
Selling price per unit
Less Variable Cost
Contribution per unit
Breakeven point = Fixed costs/ Contribution per unit
630,000/ 90= 7,000
7,000 VCRs need
1. When output volume increases, do variable costs per unit increase, decrease, or stay the
same within the relevant range of activity? Explain
Variable costs per unit will stay the same because each unit consumes the same am
On December 31, 2012, Central Freight reported an allowance for uncollectible
accounts of $15,300. During 2013, Central wrote off $17,000 in accounts receivable.
Included in the write-off was Roskoff Corp.'s account in the amount of $750. Roskoff
1. What are the major advantages of the indirect method of reporting cash
flows from operating activities?
Indirect method reports the necessary adjustments to reconcile net income to net cash
provided or used by operating ac
2. a. William tells Carol that he paid $150,000 for his farm in 2008, and that he believes it is
worth twice that at the present time. Relying upon these statements, Carol buys the farm from
William for $225,000. William did pay $150,000 for th
Chapter 13 Discussion Assignment
1. What is the difference between a stock dividend and a
Stock dividend declared by a corporations directors, is a
distribution of additional shares of the corporations own
stock to its stockholders without th
1. What is the difference between comparitive financial statements and
common-size comparitive statements?
Comparative financial statement is comparing amounts for two or more successive
period often helps in analyzing financial statements. It
1. In consideration of $1,800 paid to him by Joyce, Hill gave Joyce a written option to
purchase his house for $180,000 on or before April 1. Prior to April 1, Hill verbally agreed to
extend the option until July 1. On May 18, Hill, Known to Jo
1. What is the major difference between managerial accounting and financial
Companies accumulate, process, and report financial accounting and managerial
accounting information for different groups of decision makes. Financial
3. While driving his car in Virginia, Carpe Diem, a resident of North Carolina, Struck Butt, a
resident of Alaska. As a result of the accident, Butt suffered more than 480,000 in medical
expenses. Butt would like to know if he personally serves
ACC 102 Module Exam I, Chapter 10 and 13 2012
1. A company purchased a truck on October 1 of the current year at a cost of $40,000. The truck is expected to last six
years and has a salvage value of $2,200. The company's annual accounting period ends on D
Exam 4: Chapters 18 and 22
1. For each of the characteristics below, identify whether it is a focus of financial
accounting or managerial accounting. Use the letter F to identify financial
accounting and M to id
Chapter 10 Discussion Assignment
1. Are the amounts at which fixed assets are reported in the
balance sheet their approximate market values as of the
balance sheet date? Explain.
Fixed assets are tangible assets used in a companys
operations that have a u