The Coffee Shop around the Corner (CS) is famous for its fresh-made muffins. Hank, the owner of CS, knows that the demand for muffins depends very much on the time of the day: The demand is high in the morning decreases in the afternoon hours and is at its lowest in the evening. Hank is having trouble deciding how many muffins to make for each period of the day. He asked you to help him forecast the demand. If you do a good job in forecasting the demand for tomorrow, Hank will pay you to do this job on a recurring basis. The following is the demand data Hank collected in the past three days:
Day 1 2 3
Period Morning Afternoon Evening Morning Afternoon Evening Morning Afternoon Evening
Demand 37 25 9 48 28 14 53 33 17
Using a 5-period moving average, forecast the morning, afternoon and evening demand for muffins on day 4.

Answer:

The Coffee Shop around the Corner (CS)

5-period Moving Average Forecast of Demand

Day 4        Based on Average   Educated Guess

Morning            29.8                       41

Afternoon         29.8                       30

Evening            30.8                        19

Explanation:

a) Data and Calculations:

Day 1           Demand    5-period Moving

                                           Average

Morning           37

Afternoon       25

Evening            9

Day 2

Morning         48

Afternoon      28                     29.4

Evening          14                     24.8

Day 3

Morning        53                     30.4

Afternoon     33                     35.2

Evening         17                     29.0

Day 4

Morning                                29.8

Afternoon                             29.8

Evening                                30.8

b) Given that for the past three days, coffee demand in the evenings had not exceeded 20, we can tweak the evening demand to less than 20 and carry the remainder to the morning when demand is always high.  In that case, the demand on day 4 may read more like, Morning 41, Afternoon 30, and Evening 19.

The August 31 balance shown on the bank statement is $9,813.

a. There is a deposit in transit of $1,263 at August 31.
b. Outstanding checks at August 31 totaled $1,877.
c. Interest credited to the account during August but not recorded on the company's books amounted to $116.
d. A bank charge of $35 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
e. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $626 had been recorded as a disbursement of $373. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,371.

Required:
Prepare a bank reconciliation as of August 31 from the above information.

Hugh has the choice between investing in a City of Heflin bond at 4.80 percent or investing in a Surething Inc. bond at 7.25 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, what interest rate does Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds

A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position test material has a defective content on the average of 0.04. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position is $9. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of $10 each when they are detected in final product testing.

Required:
a. If the inspector position is eliminated, what will the hourly cost of defects be?
b. Should this inspection position be eliminated?
c. What is the cost to inspect each unit?
d. Is there benefit (or loss) from the current inspection process? How much?

Use the following information to answer this question.
Bayside, Inc. 2010 Income Statement ($ in thousands)
Net sales $ 5,970
Less: Cost of goods sold 4,320
Less: Depreciation 340
Earnings before interest and taxes 1,310
Less: Interest paid 33
Taxable Income $ 1,277
Less: Taxes 447
Net income $ 830
Bayside, Inc. 2009 and 2010 Balance Sheets ($ in thousands)
2009 2010 2009 2010
Cash $ 90 $195 Accounts payable $ 1,480 $ 1,455
Accounts rec. 980 820 Long-term debt 770 570
Inventory 1,585 2,020 Common stock $ 3,205 $ 3,240
Total $ 2,655 $ 3,035 Retained earnings 840 1,090
Net fixed assets3,640 3,320
Total assets $ 6,295 $ 6,355 Total liab. & equity $ 6,295 $ 6,355
How many dollars of sales are being generated from every dollar of fixed assets? (use 2010 values)
a. $1.72
b. $0.94
c. $0.95
d. $1.64
e. $1.80

Which of the following types of insurance allows individuals to keep a former employer's group coverage for a set period of time?
COBRA
Individual health insurance
Hospital indemnity policy
Group health insurance

Some firms pool overhead into a single plantwide overhead pool, while others accumulate overhead costs into manufacturing departments, each of which has an overhead cost pool and overhead cost application rate. Which approach is likely to provide more accurate cost numbers for cost estimating, pricing, and performance evaluation?

Every day, Josephine buys coffee and lottery tickets. She has a budget of $12. The coffee at the bodega she goes to costs $0.75 and lottery tickets are $1.50 each. Which equation represents Josephine's budget constraint?​

what is Amazon's current price-to-book value?

Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.2 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 7% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end.

Required:
a. Prepare the journal entries on October 1, 2021, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank.
2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and (b) Midwest Bank.
3. Prepare the journal entries on September 30, 2021, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank.

a. A ______ of accounts is a list of all accounts a company uses, not including account balances. b. The ______ is a record containing all accounts used by a company, including account balances. c. A(n) ______ describes transcations entering an accounting system, such as a purchase order. d. Increases and decreases in a specific asset, liability,

you have $26,605.46 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $270,000. you expect to earn 10% annually on the account. how many years will it take to reach your goal? do not round intermediate calculations. round your answer to the nearest whole number.

Adams Company has two products: A and B. The annual production and sales of Product A is 2,300 units and of Product B is 1,700 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $105,475.
The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:
Total Estimated
Overhead
Costs Expected Activity
Product A Product B Total
Activity 1 $32,592 1,600 1,200 2,800
Activity 2 18,564 2,300 800 3,100
General Factory54,319 690 1,020 1,710
Total $105,475
(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.)
The overhead cost per unit of Product B under the traditional costing system is closest to:________.
a. $20.30
b. $14.62
c. $16.71
d. $37.01

The following balance sheet for the Hubbard Corporation was prepared by the company:

HUBBARD CORPORATION
Balance Sheet
At December 31, 2021
Assets
Buildings $754,000
Land 262,000
Cash 64,000
Accounts receivable (net) 128,000
Inventory 248,000
Machinery 284,000
Patent (net) 104,000
Investment in equity securities 68,000
Total assets $1,912,000

Liabilities and Shareholders' Equity
Accounts payable $219,000
Accumulated depreciation 259,000
Notes payable 508,000
Appreciation of inventory 84,000
Common stock (authorized and issued
104,000 shares of no par stock) 416,000
Retained earnings 426,000
Total liabilities and shareholders' equity $1,912,000

Additional information:
The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $54,000 but, due to a significant increase in market value, is listed at $128,000. The increase in the land account was credited to retained earnings. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $24,000 of which will be sold in the coming year. The remainder will be held indefinitely. Notes payable are all long term. However, a $140,000 note requires an installment payment of $35,000 due in the coming year. Inventory is recorded at current resale value. The original cost of the inventory is $164,000.

Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2018.

As a long-term investment at the beginning of the 2018 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 16 million shares for $68 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $52 million and distributed cash dividends of $.75 per share. At the end of the year, the fair value of the shares is $64 million.Required: Prepare the appropriate journal entries from the purchase through the end of the year.

A farmer in Germany can use his land to produce corn or wheat. Suppose he can produce 1 million bushels of corn if it devotes all of its land to corn or 10 million bushels of wheat if it devotes all time to wheat. Plot the PPF with corn on the vertical access and wheat on the horizontal axis. What is the opportunity cost of a bushel of corn

Markel entered into a contract with Jaylin to paint a portrait for her in consideration of $600. This contract was freely negotiated. There was nothing in the terms of the agreement about when Markel had to start on the portrait or how long it should take him to finish. It took Markel a long time to complete the portrait, almost 18 months. Which of the following is true of this contract?

a. It must be in writing because it took longer than one year to complete.
b. It must be in writing because it was for more than $500.
c. It is a unilateral contract.
d. The contract need not be in writing.

The following information is available for Robstown Corporation for 20Y8:
Inventories
January 1
December 31
Materials $77,250 $93,600
Work in process 108,800 96,700
Finished goods 112,500 108,400
December 31
Advertising expense $ 67,800
Depreciation expense-office equipment 23,000
Depreciation expense-factory equipment 14,600
Direct labor 186,100
Heat, light, and power-factory 5,550
Indirect labor 23,800
Materials purchased 123,800
Office salaries expense 78,300
Property taxes-factory 4,145
Property taxes-office building 13,800
Rent expense-factory 6,550
Sales 861,500
Sales salaries expense 138,500
Supplies-factory 4,750
Miscellaneous costs-factory 4,420
a. Prepare the 20Y8 statement of cost of goods manufactured. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Robstown Corporation
Statement of Cost of Goods Manufactured
1
2
Direct materials:
3
4
5
6
7
8
9
Factory overhead:
10
11
12
13
14
15
16
17
18
19
20
21
b. Prepare the 20Y8 income statement. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive.
Robstown Corporation
Income Statement
1
2
Cost of goods sold:
3
4
5
6
7
8
9
Operating expenses:
10
Administrative expenses:
11
12
13
14
Selling expenses:
15
16
17
18

Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred:

Apr.
1 Stockholders invested $18,000 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $375 per week, payable monthly.
2 Paid office rent for the month $900.
3 Purchased architectural supplies on account from Burmingham Company $1,300.
10 Completed blueprints on a carport and billed client $1,900 for services.
11 Received $700 cash advance from M. Jason to design a new home.
20 Received $2,800 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,500.
30 Paid $300 to Burmingham Company for accounts payable due.

Required:
Journalize the transactions.

What may make a small business loan challenging to obtain? List at least two potential obstacles.

Suppose the market for hamburgers is unregulated. That is, hamburger prices are free to adjust based on the forces of supply and demand. If a shortage exists in the hamburger market, then the current price must be ________than the equilibrium price. For the market to reach equilibrium, you would expect _______.
If a shortage exists in the hamburger market, then the current price must be a)higher b)lower than the equilibrium price. For the market to reach equilibrium, you would expect:__________
a) buyers to offer higher prices
b) sellers to offer lower prices
c) persistent excess demand

Smith Corporation has provided the following information: Cash sales totaled $135,000. Credit sales totaled $289,000. Cash collections from customers for services yet to be provided totaled $48,000. An $10,000 gain from the sale of property and equipment occurred. Interest income totaled $8,700. How much of these items were included in operating income

ABC Company has elected to adopt the dollar-value LIFO inventory method when the inventory is valued at $125,000. The adoption takes place as of January 1, 20X1 when the entire inventory represents a single pool. ABC Company determined that the inventory at December 31, 20X1 was $144,375 at current year cost and $131,250 at base year cost using a relevant price index of 1.10. The inventory at December 31, 20X1 under dollar value LIFO is

The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled steel was $1.8 million for the first 4 years. An effective energy conservation program resulted in a reduced cost of $1.77 million in year 5, and $1.74 million in year 6, and amounts decreasing by $30,000 each year through year 10. What is the present worth of the pumping costs in year 0 at an interest rate of 12% per year?

The following information is for Punta Company for July: Factory overhead costs were applied to jobs at the predetermined rate of $51.50 per labor hour. Job S incurred 6,265 labor hours; Job T used 4,365 labor hours. Job S was shipped to customers during July. Job T was still in process at the end of July. The overapplied or underapplied overhead to the Cost of Goods Sold account was closed at the end of July. Factory utilities, factory depreciation, and factory insurance incurred are summarized as follows: Utilities $ 16,950 Depreciation 49,500 Insurance 19,800 Total $ 86,250 f. Direct materials and indirect materials used are as follows: Job S Job T Total Material A $ 33,000 $ 75,750 $ 108,750 Material B 14,700 37,700 52,400 Subtotal $ 47,700 $ 113,450 $ 161,150 Indirect materials 215,500 Total $ 376,650 g. Direct labor incurred for the two jobs and indirect labor are as follows: Job S $ 64,500 Job T 54,000 Indirect labor 151,000 Total $ 269,500
Required:
1. Calculate the total manufacturing cost for Job S and Job T for July. (Round your intermediate calculations and final answers to 2 decimal places.)
2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment.?

Waterway Industries provided the following information on selected transactions during 2021: Dividends paid to preferred stockholders $ 510000 Loans made to affiliated corporations 1400000 Proceeds from issuing bonds 1550000 Proceeds from issuing preferred stock 2090000 Proceeds from sale of equipment 795000 Purchases of inventories 2350000 Purchase of land by issuing bonds 590000 Purchases of treasury stock 1180000 The net cash provided (used) by financing activities during 2021 is

The production possibilities frontier will shift outward
A.
if resources are used to produce consumption goods.
B.
if production occurs outside the production possibilities frontier.
C.
if resources are not used in production.
D.
.if resources are not used to produce capital goods
E.
.if technological advances occur

You have received two bids from outside companies to conduct guest satisfaction surveys for you. You want at least 320 responses. Company A charges $3,200 + $6 per respondent. Company B charges $4,000 + $3 per respondent. Which company will cost you less?

a) Company A
b) Company B

A manufacturing plant that assembles television sets has variable output volume from 200 sets to 350 sets a day. The building for both manufacturing and warehousing has an area of 80,000 square feet. It employs about 250 people. It produces all of the components that go into the assembly. An example for variable cost in this plant is ___________________. Group of answer choices building cost equipment cost labor cost property taxes

Inventories: March 1 March 31 Raw material $18,000 $15,000 Work in process 9,000 6,000 Finished goods 27,000 36,000 Additional information for March: Raw material purchased $42,000 Direct labor payroll $30,000 Direct labor rate per hour $7.50 Overhead rate per direct labor hour $10.00 Refer to Crawford Enterprises. For March, conversion cost incurred was

Use the following information available as of December 31 to prepare an income statement for the year and a balance sheet for Goldie Company.
Fees for services performed during the year, $123,000
Accounts payable, $17,800
Accounts receivable, $17,400
Miscellaneous expenses for the year, $9,000
Supplies on hand, $3,300
Notes payable, $25,000
Interest expense on the note for the year, $3,700
Equipment, $92,700
Cash on hand, $11,600
Salaries expense for the year, $71,500
Supplies expense for the year, $8,500
Rent expense for the year, $11,100
Common stock that has been issued, $55,000
Retained earnings at the end of the year, $27,200