USA Airlines uses the following performance measures. Classify each of the performance measures below into the most likely balanced Scorecard perspective it relates to. Select your answers using C(customer), P (internal process), / (innovation and growth), or F(financial). 1. Percentage of late flights 2. Cost of leasing airport gates 3. Employee satisfaction survey ratings 4. Percentage of waste recycled 5. Number of reports of mishandled or lost baggage 6. Operating cash flow 7. Employee diversity training sessions completed 8. Accidents or safety incidents per mile flown 9. Percentage of on-time departures 10. Average ticket price 11. Percentage of ground crew trained 12. Time airplane is on ground between flights 13. On-time flight percentage 14. Net income

Answer: please see explanation column

Explanation: Classifying performance measures, we have

1. Percentage of late flights ------Customer, C

2. Cost of leasing airport gates ----Financial, F

3. Employee satisfaction survey ratings----P (internal process)

4. Percentage of waste recycled-----Innovation and Growth, I

5. Number of reports of mishandled or lost baggage ----Customer, C

6. Operating cash flow------Financial, F

7. Employee diversity training sessions completed-----Innovation and Growth, I

8. Accidents or safety incidents per mile flown---- -P (internal process)

9. Percentage of on-time departures----Customer, C

10. Average ticket price----Financial, F

11. Percentage of ground crew trained------Innovation and Growth, I

12. Time airplane is on ground between flights------P (internal process)

13. On-time flight percentage---Customer, C-

14. Net income-----Financial, F

Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. (If an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)(a) Purchased $173 of supplies for cash.(b) Recorded an adjusting entry to record use of $49 of the above supplies.(c) Made sales of $1,271, all on account.(e) Received $738 from customers in payment of their accounts. Purchased equipment for cash, $2,518.(f) Recorded depreciation of building for period used, $743.

Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $3,600,000 par value, mature in four years, and pay 7% interest semiannually on June 30 and December 31.

Required:
a. Record the entry for the issuance of bonds for cash on January 1.
b. Record the entry for the first semiannual interest payment and the second semiannual interest payment.
c. Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).

A factory machine was purchased for $393000 on January 1, 2018. It was estimated that it would have a $74000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 30000 hours in the 5 years. The company ran the machine for 3900 actual hours in 2018.
Required:
1. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2018 would be ________.
A) $51090.
B) $41470.
C) $82940.
D) $74000.

On December 1, 2020, Concord Corporation acquired new equipment in exchange for old equipment that it had acquired in 2017. The old equipment was purchased for $216000 and had a book value of $83720. On the date of the exchange, the old equipment had a fair value of $91000. In addition, Concord paid $286000 cash for the new equipment, which had a list price of $386000. The exchange lacked commercial substance. At what amount should Concord record the new equipment for financial accounting purposes?

You are considering adding a new food product to your store for resale. You are certain that, in a month, minimum demand for the product will be 5 units, while maximum demand will be 8 units. (Unfortunately, the new product has a one-month shelf life and is considered to be waste at the end of the month.) You will pay $70/unit for this new product while you plan to sell the product at $100 ($30/unit profit). The estimated demand for this new product in any given month is 5 units (p=0.2), 6 units (p=0.2), 7 units (p=0.4), and 8 units (p=0.2).
Required:
1. Using EMV analysis, how many units of the new product should be purchased for resale?

1. Assuming that crowding out is not an issue, if Congress increases business taxes at the same time that the Federal Reserve conducts an open market sale, output and price level are likely to change in which of the following ways?
Output / Price Level
A. Increase / Decrease.
B. Decrease / Increase
C. Indeterminate / Decrease.
D. Decrease / Indeterminate.
E. Decrease / Decrease.
2. The election of a new president resulted in a significant increase in business confidence regarding the economy. How will this new confidence impact the loanable funds market in the short run?
Demand for Loanable Funds / Real Interest Rate
A. Increase / Increase.
B. Increase / Decrease.
C. Increase / No Change.
D. Decrease / Decrease.
E. Decrease / Increase
3. When a bank’s excess reserves increase by $375 after $500 was deposited in the bank, the reserve requirement must be
a. 10 percent.
b. 15 percent.
c. 20 percent.
d. 25 percent.
e. 30 percent.

What's the total resistance of a circuit that contains three 30 Ω resistors connected in series

The information listed below refers to the employees of Lemonica Company for the year ended December 31, 2016. The wages are separated into the quarters in which they were paid to the individual employees.NameSocial Security #1st Qtr.2nd Qtr.3rd Qtr.4th Qtr.TotalRobert G. Cramer . . . . . . . . . . . .000-00-0001$ 5,800$ 5,000$ 5,000$ 5,200$ 21,000Daniel M. English (Foreman) . . .000-00-000313,00013,40013,40013,40053,200Ruth A. Small . . . . . . . . . . . . . . .000-00-19982,0002,3002,3002,4009,000Harry B. Klaus. . . . . . . . . . . . . . .000-00-741311,60011,70011,70011,70046,700Kenneth N. George (Manager) . .000-00-652313,60014,00014,50015,00057,100Mavis R. Jones . . . . . . . . . . . . . .000-00-67891,6001,7001,700-0-5,000Marshall T. McCoy. . . . . . . . . . .000-00-333411,40011,400-0--0-22,800Bertram A. Gompers (President) .000-00-101424,50025,00025,50026,300101,300Arthur S. Rooks. . . . . . . . . . . . . .000-00-7277-0-7001,7001,7004,100Mary R. Bastian . . . . . . . . . . . . .000-00-81118,0008,2008,2008,20032,600Klaus C. Werner . . . . . . . . . . . . .000-00-26232,3002,5002,5002,5009,800Kathy T. Tyler . . . . . . . . . . . . . . .000-00-3534-0--0-11,30011,70023,000Totals . . . . . . . . . . . . . . . . . . . .$93,800$95,900$97,800$98,100$385,600For 2016, State D’s contribution rate for Lemonica Company, based on the experience-rating system of the state, was 2.8% of the first $7,000 of each employee’s earnings. The state tax returns are due one month after the end of each calendar quarter. During 2016, the company paid $2,214.80 of contributions to State D’s unemployment fund. Employer’s phone number: (613) 555-0029. Employer’s State D reporting number: 00596.Using the forms supplied on pages 5-42 to 5-44, complete the following for 2016:a. Date and amount of the FUTA tax payment for the fourth quarter of 2016 (State D is not a credit reduction state). Tax Payment: Date _____________ Amount $____________b. Employer’s Report for Unemployment Compensation, State D—4th quarter only. Item 1 is the number of employees employed in the pay period that includes the 12th of each month in the quarter. For Lemonica Company, the number of employees is eight in October, seven in November, and eight in December. All employees earned 13 credit weeks during the last quarter except for Rooks (8) and Tyler (9).c. Employer’s Annual Federal Unemployment (FUTA) Tax Return—Form 940Indicate on each form the date that the form should be submitted and the amount of money that must be paid. The president of the company prepares and signs all tax forms.

a. "The choice of strategy for a multinational firm must depend on a comparison of the benefits of that strategy (in terms of value creation) with the costs of implementing it (as defined by organizational architecture necessary for implementation). On this basis, it may be logical for some firms to pursue a localization strategy, others a global or international strategy, and still others a transnational strategy." Is this statement correct? Why or why not?

A company is considering the purchase of new equipment for $96,000. The projected annual net cash flows are $37,700. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 8% return on investment. The present value of an annuity of $1 for various periods follows: Period Present value of an annuity of $1 at 8% 1 0.9259 2 1.7833 3 2.5771 What is the net present value of this machine assuming all cash flows occur at year-end

Under ideal conditions inflation should not have any blurring effect on price signals. If wages and prices are rising at a constant 20% then individuals should be able to adjust their expectations accordingly. For example, if the price of bread increased by 20% and the price of the input flour also rose by 20%, the sellers should know that the real price of bread has not changed. The market equilibrium quantity and price has not changed. Why does inflation in the real world result in shortages and surpluses?

Metlock Industries acquired two copyrights during 2020. One copyright related to a textbook that was developed internally at a cost of $9,300. This textbook is estimated to have a useful life of 3 years from September 1, 2020, the date it was published. The second copyright (a history research textbook) was purchased from University Press on December 1, 2020, for $40,000. This textbook has an indefinite useful life.
Required:
a) How should these two copyrights be reported on Metlock’s balance sheet as of December 31, 2020?

On February 1, 2014, Nelson Corporation purchased a parcel of land as a factory site for $280,000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2014. Costs incurred during this period are listed below: Demolition of old building $ 20,000 Architect's fees 35,000 Legal fees for title investigation and purchase contract 5,000 Construction costs 1,340,000 (Salvaged materials resulting from demolition were sold for $10,000.)
Nelson should record the cost of the land and new building, respectively, as

Matt and Sarah are selling their home and moving to a new neighborhood. Sarah is going to start college in the fall. She did NOT attend college after high school and is now embarking on her degree. Matt was injured recently in a motorcycle accident and the couple has some very high medical expenses that are coming due. They have considered liquidating their traditional IRAs in order to cover some of these costs. Which types of expenditures can they make from funds in their IRAs without incurring a 10% penalty for early withdrawal?

J&E Enterprisesi s considering and investment which produces no cash flows for the first year. In the second year, the cash inflow is $47,000. This inflow will increase to $198,000 and then $226,000 for the following two years, respectively, before ceasing permanently. The initial investment will cost $318,000. The firm requires a 15.5 percent rate of return and has a required discounted payback period of three years. Should the project be accepted. Why or why not?



Year Cash flow Discounted cash flo Cumulative cash flo

1 $0 $0.00 $0.00
2 $47,000 $35,321.72 $35,231.72
3 $198,000 $128,504.77 $163,736.49
4 $226,000 $126,993.21 $290,729.70

Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
Inputs Standard Quantity or Hours Standard Price or Rate
per Unit of Output
Direct materials
7.60 liters $ 7.20 per liter
Direct labor 0.60 hours 23.70 per hour
Variable manufacturing overhead 0.60 hours $ 6.10 per hour
The company has reported the following actual results for the product for September:
Actual output 9,800 units
Raw materials purchased 75,200 liters
Actual cost of raw materials purchased $ 564,500
Raw materials used in production 74,500 liters
Actual direct labor-hours 5,500 hours
Actual direct labor cost $ 135,302
Actual variable overhead cost $ 29,314
Required:
a. Compute the materials price variance for September.
b. Compute the materials quantity variance for September.
c. Compute the labor rate variance for September.
d. Compute the labor efficiency variance for September.
e. Compute the variable overhead rate variance for September.
f. Compute the variable overhead efficiency variance for September.

Use the following information to create an income statement and balance sheet.

Accounts Payable 250,000
Accounts Receivable 230,000
Cash 370,000
Common Stock 100,000
Costs 430,000
Depreciation Expense 40,000
Dividends 73,800
Goodwill 170,000
Interest Expense 60,000
Inventory 80,000
Land 499,770
Line of credit (used) 150,000
Long Term Loan 400,000
Paid in Surplus 225,000
Preferred Stock 75,000

The R&D division of Piqua Chemical Corp. has just developed a chemical for sterilizing the vicious Brazilian "killer bees" which are invading Mexico and the southern United States. The president of the company is anxious to get the chemical on the market to boost the company’s profits. He believes his job is in jeopardy because of decreasing sales and profits. The company has an opportunity to sell this chemical in Central American countries, where the laws are much more relaxed than in the United States. The director of Piqua’s R&D division strongly recommends further testing in the laboratory for side-effects of this chemical on other insects, birds, animals, plants, and even humans. He cautions the president, "We could be sued from all sides if the chemical has tragic side-effects that we didn’t even test for in the labs." The president answers, "We can’t wait an additional year for your lab tests. We can avoid losses from such lawsuits by establishing a separate wholly-owned corporation to shield Piqua Corp. from such lawsuits. We can’t lose any more than our investment in the new corporation, and we’ll invest in just the patent covering this chemical. We’ll reap the benefits if the chemical works and is safe, and avoid the losses from lawsuits if it’s a disaster." The following week, Piqua creates a new wholly-owned corporation called Finlay Inc., sells the chemical patent to it for $10, and watches the spraying begin.Instructions: 1. Who are the stakeholders in this situation? 2. Are the president's motives and actions ethical? 3. Can Piqua shield itself against losses of Finlay Inc.?

In its first year of operations, Gomes Company recognized $28,000 in service revenue, $6,000 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from customers. The company incurred operating expenses of $15, 800. Of these expenses, $12,000 were paid in cash; $3, 800 was still owed on account at year-end. In addition, Gomes prepaid $2, 400 for insurance coverage that would not be used until the second year of operations.
(a) Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the basis of accounting.
(b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers?

How can managers leverage on components of organizational behavior to maximize business success

Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (8 pounds at $2.40 per pound) $19.20 Direct labor (5 hours at $12.00 per hour) $60.00 During the month of April, the company manufactures 260 units and incurs the following actual costs. Direct materials purchased and used (2,400 pounds) $6,240 Direct labor (1,310 hours) $15,458 Compute the total, price, and quantity variances for materials and labor. Total materials variance $enter a dollar amount select an option Materials price variance $enter a dollar amount select an option Materials quantity variance $enter a dollar amount select an option Total labor variance $enter a dollar amount select an option Labor price variance $enter a dollar amount select an option Labor quantity variance $enter a dollar amount

Whispering Winds Corp. took a physical inventory on December 31 and determined that goods costing $213,000 were on hand. Not included in the physical count were $35,000 of goods purchased from Coronado Industries, FOB, shipping point, and $26,500 of goods sold to Sunland Company for $31,000, FOB destination. Both the Coronado purchase and the Sunland sale were in transit at year-end.
Required:
1. What amount should Whispering Winds report as its December 31 inventory?

Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [LO6-1, LO6-3, LO6-5, LO6-6, LO6-7]Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per UnitSales$640,000 $40 Variable expenses 448,000 28 Contribution margin 192,000 $12 Fixed expenses 145,200 Net operating income$46,800 Required:1. What is the monthly break-even point in unit sales and in dollar sales?2. Without resorting to computations, what is the total contribution margin at the break-even point?3-a. How many units would have to be sold each month to attain a target profit of $75,600?3-b. Verify your answer by preparing a contribution format income statement at the target sales level.4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.5. What is the company’s CM ratio? If sales increase by $96,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

The following transactions occurred during March 2013 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.




1. Issued 30,000 shares of common stock in exchange for $300,000 in cash.
2.
Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed.

3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
5. Paid $5,000 in rent on the warehouse building for the month of March.
6.
Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2013.

7. Paid $70,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Recorded depreciation expense of $1,000 for the month on the equipment.



Required:
Analyze each transaction and show the effect of each on the accounting equation for a corporation. (Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.)

ASSETS = Liabilities + Paid-in Capital + Retained Earnings

1

2

3

4

5

6

7

8

9

A and B Companies have been operating separately for five years. Each company has a minimal amount of liabilities and a simple capital structure consisting solely of voting common stock. In exchange for 40 percent of its voting stock, A Company acquires 80 percent of the common stock of B Company. This is a "tax-free" stock-for-stock exchange for tax purposes. B Company’s identifiable assets have a total net fair market value of $800,000 and a total net book value of $580,000. The fair market value of the A stock used in the exchange is $700,000, and the fair value of the noncontrolling interest is $175,000.
Required:
1. The goodwill reported following the acquisition would be _____________.

Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinate the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These financial instruments can be categorized on the basis of their issuers, maturity, risk, and other factors. Identify the financial instruments based on the following descriptions.

a. Backed by the US government, these financial instruments are fixed-rate debt securities with a maturity of more than one year. They are considered default free but are subject to interest rate risk.
b. Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk.
c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.
d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.

Which of the following instruments are traded in the capital markets? Check all that apply.
a. Common stocks
b. Corporate bonds
c. Preferred stocks
d. Certificates of deposit
e. Long-term bank loans

On January 1, 2018, Ogleby Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Ogleby to make annual payments of $180,000 at the beginning of each year for five years with title passing to Ogleby at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Ogleby uses the straight-line method of depreciation for all of its fixed assets. Ogleby accordingly accounts for this lease transaction as a finance lease. The minimum lease payments were determined to have a present value of $750,578 at an effective interest rate of 10%.

With respect to this lease, for 2018 Ogleby should record

a. rent expense of $180,000.

b. interest expense of $57,058 and amortization expense of $150,116.

c. interest expense of $57,058 and amortization expense of $107,225.

d. interest expense of $90,000 and amortization expense of $181,956

Show all work including formulas

Ashley Robertson works for MRK all year and earns a monthly salary of $ 11,900. There is no overtime pay. Ashley​'s income tax withholding rate is 20 % of gross pay. In addition to payroll​ taxes, Ashley elects to contribute 2% monthly to United Way. MRK also deducts $ 125 monthly for​ co-payment of the health insurance premium. As of September​ 30, Ashley had $ 107,100 of cumulative earnings.
Required:
1. Compute Ashley​'s net pay for October. ​(Round all amounts to the nearest​ cent.) Withholding deductions: Net (take-home) pay
2. Journalize the accrual of salaries expense and the payment related to the employment of Ashley Robertson.

Portable Pet Care, Inc., a mobile veterinary clinic, is planning for the future. The company owners (two seasoned veterinarians) have brought together the vice president of marketing and the director of information systems to talk about their expansion campaign, "We come to you!" The talks are in the preliminary stages, so there is no need to concern the finance team at this time because cash flow is currently not a problem. True or false?

On July 31, 2020, Cullumber Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction begun immediately and was completed on November 1, 2020. To help finance construction, on July 31 Cullumber issued a $324,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $216,000 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Cullumber made a final $108,000 payment to Minsk. Other than the note to Netherlands, Cullumber’s only outstanding liability at December 31, 2020, is a $29,500, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31.Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2020.