Accounting

Deficiencies of the Static Planning Budget To illustrate the difference between a static planning budget and a flexible budget, consider Rick’s Hairstyling, an upscale hairstyling salon located in Beverly Hills that is owned and managed by Rick Manzi. The salon has very loyal customers—many of whom are associated with the film industry. Recently Rick has […]

What should be the carrying value of Sullivan’s inventory if the company prepares its financial statements according to International Financial Reporting Standards?   Cinnamon Buns Co. (CBC) started 2011 with $52,000 of merchandise on hand. During 2011, $280,000 in merchandise was purchased on account with credit terms of 2/10 n/30. All discounts were taken. Purchases were all made

ACCOUNTING INFORMATION SYSTEMS 2 1.   Cendant Corporation’s results for the year ended December 31, 2011, include the following material items: Sales revenue $6,200,000 Cost of goods sold 3,800,000 Selling and administrative expenses 1,300,000 Loss on sale of investments 200,000 Loss on discontinued operations 500,000 Loss on expropriation (unusual and infrequent event) 800,000 Restructuring costs 80,000

IN BUSINESS: WHY DO COMPANIES NEED FLEXIBLE BUDGETS? The difficulty of accurately predicting future financial performance can be readily understood by reading the annual report of any publicly traded company. For example Nucor Corporation, a steel manufacturer headquartered in Charlotte, North Carolina, cites numerous reasons why its actual results may differ from expectations, including the following:

What would be the balance in income tax payable at the end of the year?  Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system. What

 Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system. What would Symphony report as total assets?   [removed]A. $2,338 [removed]B. $2,318 [removed]C. $2,303 [removed]D. $2,323   22.   The full

Chapter 9 Flexible Budgets and Performance Analysis LEARNING OBJECTIVES After studying  Chapter 9 , you should be able to: · LO1 Prepare a flexible budget. · LO2 Prepare a report showing activity variances. · LO3 Prepare a report showing revenue and spending variances. · LO4 Prepare a performance report that combines activity variances and revenue and spending variances. · LO5 Prepare a flexible budget with more than one cost

ACCOUNTING INFORMATION SYSTEMS 1 1.   Cal Farms reported supplies expense of $2,000,000 this year. The supplies account decreased by $200,000 during the year to an ending balance of $400,000. What was the cost of supplies the Cal Farms purchased during the year?   [removed]A. $1,600,000 [removed]B. $2,200,000 [removed]C. $1,800,000 [removed]D. $2,400,000   2.   Listed below are account balances (in $millions) taken from the

Required Assignment 2—Manufacturing Budget Analysis Tom Emory and Jim Morris strolled back to their plant from the administrative offices of Ferguson & Son Manufacturing Company. Tom is manager of the machine shop in the company’s factory; Jim is manager of the equipment maintenance department. The men had just attended the monthly performance evaluation meeting for

Problem 5 Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:   Budgeted Actual  Sales (15,000     pools)…………………………….. $240,000 $240,000 Less variable expenses: Variable cost of goods     sold*………………. 57,900 74,210 Variable selling     expenses…………………. 18,000 18,000 Total variable     expense………………………….. 75,900