Stucki Holdings Corp. incurred the following expenditures: $3,400 cost to replace the transmission in a company-owned vehicle; $16,700 cost of annual property insurance on the company’s production facilities; $14,100 cost to develop and register a design patent; $62,500 cost to add a security and monitoring system to the company’s distribution center; $700 cost to repair paint damage on a company-owned vehicle caused by normal wear and tear.
Required:
Which, if any, of these expenditures should be capitalized?

Solution :

1. Nature : Cost to replace the transmission in the company owned vehicle    --- $3,400

Remarks : It is a capital expenditure as the benefit of the transmission is more than 1 year.

2. Nature : cost of annual property insurance on the company’s production facilities ---- $16,700

Remarks : Insurance is considered as an annual expense of the company and the benefits of the company. It is available only for the year of insurance and therefore it is a revenue expense.

3. Nature : cost to develop and register a design patent  --- $14,100

Remark : This expense should be capitalized as the benefits of the design is received for a longer period of time.

4. Nature :  cost to add a security and monitoring system to the company’s distribution center  --- $62,500

Remark : This expense should be capitalized as the benefits of the security as well as the monitoring is received  for more than 1 year.

5. Nature : cost to repair paint damage on a company-owned vehicle caused by normal wear and tear  --- $700

Remark : It is regular and is a maintenance expense. So this expense will not be capitalized.

Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

For a market to be competitive:______.
a. each buyer and seller is small, relative to the whole market; no single decision maker has any influence over the market price.
b. the price must be a fair price.
c. sellers should have substantial pricing power.
d. all you need are many buyers and many sellers

Russell Preston delivers parts for several local auto parts stores. He charges clients $0.75 per mile driven. Russell has determined that if he drives 3,000 miles in a month, his average operating cost is $0.55 per mile. If he drives 4,000 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $600 + $0.35 per mile.

On January 1, 2019, Brooks Inc. borrows $90,000 from a bank and signs a 5% installment note requiring four annual payments of $25,381. The first installment payment is made on December 31.

Required:
Write down the necessary journal entry

An unfunded pension liability is reported on the balance sheet as a(n) a.current liability or a long-term liability, depending upon when the pension liability is to be paid. b.long-term liability. c.current liability. d.owners' equity.

Ellen Co. has offered their customers a 1% discount off the amount owed if they pay within 15 days of receiving their bill. Handler Company owed Ellen Co. $2,185 as of May 1st and paid Ellen Co. on May 7th. How much cash did Handler Company send to Ellen Co. on May 7th?

A successful lease agreement is created so that both the lessee and lessor reap some benefits. Tax and depreciation write-offs are some critical reasons for leasing, but there are several other qualitative reasons for leasing. Below are two situations in which a firm must decide whether to lease or to buy a particular asset. Based on your understanding of the advantages to leasing from a qualitative perspective, what is the firm likely to do in each situation—lease or buy? Assume all other quantitative factors remain constant.

Compnay #1:
Win Jet Corp. is a private-jet charter company. Due to increased demand during the summer, it needs to add three more jets to its fleet. Win Jet is more likely to ___________
Compnay #2:
Kiran owns a medium-sized printing business. She owns three one-color (black) printers and needs a color printer for volume print production. She wants to keep the operating expenses related to the color printer low, so she should ____________ a color printer.

Gentle Ben's Bar and Restaurant uses 6,700 quart bottles of an imported wine each year. The effervescent wine costs $4 per bottle and is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $25 each time an order is placed, and holding costs are 15 percent of the purchase price. It takes three weeks for an order to arrive. Weekly demand is 134 bottles (closed two weeks per year) with a standard deviation of 30 bottles. Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability.

Required:
a. What is the economic quantity for Ben to order? (Round your answer to the nearest whole number.)
b. At what inventory level should he place an order? (Round your answer to the nearest whole number.)

A pre-determined overhead rate includes:_____.
a. estimated total manufacturing overhead cost in the numerator.
b. only the fixed portion of the estimated manufacturing overhead cost in the numerator.
c. only the variable portion of the estimated manufacturing overhead cost in the numerator.
d. estimated total manufacturing overhead cost in the denominator.

Use following information to answer Q31-Q35
A firm produces output according to the following function: q = f(L,K) = L0.5K0.5 . The cost of labor is $4 per hour and the rental cost of capital is $12 per hour. The production function exhibits
A. constant returns to scale.
B. increasing returns to scale.
C. decreasing retums to scale.
D. increasing returns to scale for small levels of output, then constant retums to scale, and eventually decreasing returns to scale as output increases,

Garson, Inc. produces three products... Garson, Inc. produces three products. Data concerning the selling prices and unit costs of the three products appear below:
Product
F G H
Selling price $100 $ 80 $110
Variable costs $60 $50 $65
Fixed costs $10 $5 $7
Milling machine time (minutes) 10 6 5
Fixed costs are applied to the products on the basis of direct labor hours. Demand for the three products exceeds the company's productive capacity. The milling machine is the constraint, with only 2,800 minutes of milling machine time available this week.
Required:
a. Given the milling machine constraint, which product should be emphasized?
b. Assuming that there is still unfilled demand for the product that the company should emphasize in part (a) above, up to how much should the company be willing to pay for an additional hour of milling machine time?

Bo decides to establish a fund that it will use 10 years from now to replace an aging production facility. The company will make a $100,000 initial contribution to the fund and plans to make quarterly contributions of $50,000 beginning in three months. The fund earns 12%, compounded quarterly. What will be the value of the fund 10 years from now

By offering more generous unemployment insurance programs, European countries can expect Group of answer choices longer periods of unemployment for their workers. shorter periods of unemployment for their workers. workers to gain new skills quickly in response to fluctuations in the labor market. to pay less in taxes than in the United States.

Xlon Co budgets a seling price of $ 86 per unit , varlable costs of $ 34 per unit , and total fixed costs of $ 286,000 . During June , the company produced and sold 12,400 units and incurred actual variable costs of $ 367,000 and actual fixed costs of $ 301,000 . Actual sales for June were $ 1,100,000 . Prepare a flexible budget report showing variances between budgeted and actual results . List variable and fixed expenses separately . ( Indicate the effect of each variance by selecting for favorable , unfavorable , and no variance )

On August 4, Armstrong Trucking, Inc., paid $4,500 to replace the engine in one of its trucks.

Required:
Write the necessary journal entry.

how nike meet the needs of their customers ?​

Following is selected financial information from General Mills Inc. for its fiscal year ended May 27, 2018 ($ millions). Cost of goods sold (COGS) $14,438.1 Cash from operating activities $3,977.4 Cash from investing activities (12,159.6) Noncash assets, end of year 42,315.0 Cash, end of year 558.6 Cash from financing activities* 7,668.2 Income tax expense 80.2 Total assets, beginning of year 30,537.6 Revenue 22,036.6 Total liabilities, end of year** 33,784.2 Total expenses, other than COGS 4,490.1 Stockholders' equity, end of year 9,089.4 and income tax * Cash from financing activities includes the effects of foreign exchange rate fluctuations. ** Total liabilities includes redeemable interest. a. Prepare the income statement for the year ended May 27, 2018. Note: Do not use negative signs with any of your answers. General Mills Income Statement ($ millions) For the year ended May 27, 2018 Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer b. Prepare the balance sheet as of May 27, 2018. General Mills Balance Sheet ($ millions) May 27, 2018 Answer Answer Answer Answer Answer Answer Answer

The collective strength of the five forces can help determine
a. what specific strategy each industry participant should pursue.
b. the strengths and weaknesses of each company in the industry.
c. if companies in the industry can reasonably expect to earn decent profits.
d. a broad view of the industry's macro-environment.

The Orange Lily Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $2,880 for six months of advertising. Orange Lily Law Firm recorded $2,880 in the Prepaid Advertising account.

Required:
If Orange Lily Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for the two months ending February 28?

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $82,650 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts.

Cash $15,200 Cash dividends $460
Accounts receivable 12,410 Consulting revenue 12,410
Office supplies 1,770 Rent expense 2,140
Land 46,080 Salaries expense 5,300
Office equipment 16,450 Telephone expense 750
Accounts payable 6,060 Miscellaneous expenses 560
Common stock 82,650

Required:
Using the above information prepare an October income statement for the business.

Use the following abbreviations to indicate the journal in which you would record transactions a through n.

a. Cash purchase of merchandise inventory
b. Collection of dividend revenue earned on an investment
c. Prepayment of insurance
d. Borrowing money on a long-term note payable
e. Purchase of equipment on account
f. Cost of goods sold along with a credit sale
g. Cash sale of merchandise inventory
h. Payment of rent
i. Depreciation of computer equipment
j. Purchase of merchandise inventory on account
k. Collection of accounts receivable
l. Expiration of prepaid insurance
m. Sale on account
n. Payment on account

Clem is married and is a skilled carpenter. Clem’s wife, Wanda, works part-time as a substitute grade school teacher. Determine the amount of Clem’s expenses that are deductible for AGI this year (if any) under the following independent circumstances:___________a) Clem is self-employed and this year he incurred $525 in expenses for tools and supplies related to his job. Since neither were covered by a qualified health plan, Wanda paid health insurance premiums of $3,600 to provide coverage for herself and Clem (not through an exchange).b) Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred expenses of $1,250 in utilities and $780 in depreciation.c) Clem paid self-employment tax of $15,300 (the employer portion is $7,650), and Wanda had $3,000 of Social Security taxes withheld from her pay.d) Clem paid $45 to rent a safe deposit box to store his coin collection. Clem has collected coins intermittently since he was a boy, and he expects to sell his collection when he retires.

The adjusted trial balance of Parsons Company at December 31, 2020, includes the following accounts: Common Stock $15,600, Dividends $7,000, Service Revenue $37,000, Salaries and Wages Expense $16,000, Insurance Expense $2,000, Rent Expense $4,000, Supplies Expense $1,500, and Depreciation Expense $1,300.

Required:
Prepare an income statement for the year.

A machine having a first cost of $20,000 is expected to save $1500 in thefirst year of operation, and the savings should increase by $200 every year until (and including) the ninth year, thereafter the savings will decrease by $150 until (and including) the 16th year.

Using equivalent uniform annual worth, is this machine economical? Assume a MARR of 9%.

Hurdzan, Inc., has a 30-day average collection period and wants to maintain a minimum cash balance of $20 million, which is what the company currently has on hand. The company currently has a receivables balance of $196 million and has developed the following sales and cash disbursement budgets (in millions):

Q1 Q2 Q3 Q4
Sales $441 $513 $594 $558
Total cash disbursement 368 465 720 456


Required:
Wrtie down cash budget for the company.

Swifty Corporation began the year with retained earnings of $102000. During 2022, the company issued $80000 of common stock for cash. The company recorded revenues of $743000, expenses of $672000, and paid dividends of $40000. What was Swifty's net income for the year 2022

Suppose that Dmitri, an economist from a research institute in Texas, and Frances, an economist from a public television program, are arguing over saving incentives. The following dialogue shows an excerpt from their debate: Frances: I think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain an improvement in living standards. Dmitri: I think a switch from the income tax to a consumption tax would bring growth in living standards. Frances: You really think households would change their saving behavior enough in response to this to make a difference.Because I don't. The disagreement between these economists is most likely due to _____. Depite their differences, with which proposition are two economists chosen at random most likely to agree? A. Employers should not be restricted from outsourcing work to foreign nations. B. Central banks should focus more on maintaining low unemployment than on maintaining low inflation. C. Business managers can raise profit more easily by reducing costs than by raising revenue.

A firm currently produces 1000 units of output and has total costs of $15,000 and fixed cost of $3,000. What is the firm’s average variable costs?

During the month of March, Harley's Computer Services made purchases on account totaling $43,500. Also during the month of March, Harley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March?
a. $6,600
b. $75,900
c. $83,900
d. $91,900

The prepaid insurance account had a beginning balance of $8,540 and was debited for $530 for premiums paid during the year. Journalize the adjusting entry required at the end of the year, assuming the amount of unexpired insurance related to future periods is $6,010.