ACC 543 EDU The learning interface/acc543edudotcom

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• ACC 543 EDU The learning interface/acc543edudotco
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ACC 543 EDU The learning interface
ACC 543 Aspects of Employment and Environment
Paper and PowerPoint (UOP) FOR MORE CLASSES
VISIT www.acc543edu.com Aspects of Employment
and Environment Paper and PowerPoint You are an
accountant at a small accounting firm. One of
your clients is looking to open a small
river-rafting business. Your client will run the
business operations from a mobile home office on
a piece of land on the riverbank. Your client
must decide the best location to start this
business and has asked you to explain the
accounting advantages of choosing the best
location. Your client is also wondering if the
business should build a permanent structure on
the land, or use the mobile home they already
own. Additionally, your client wants to know the
insurance implications of this decision. How
would the insurance implications of the location
decision change the companys risks and how might
your client use insurance to better manage those
risks? As a team, conduct research on three
locations and select a location that your client
will use to start this business.
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ACC 543 EDU The learning interface
ACC 543 Capital Budget Recommendation (UOP) FOR
MORE CLASSES VISIT www.acc543edu.com Capital
Budget Recommendation Guillermo Furniture, a
company that manufactures midgrade and high-end
sofas, has just hired you as an accountant. The
owner, Guillermo Navallez, has assigned you the
tasks of determining which decisions provide the
greatest returns. Read the Guillermo Furniture
Scenario and review the Guillermo Furniture Data
Sheets on your student Web site. Enter your name
in cell A3 of the Income Information tab in the
Guillermo Furniture Data Sheets. Submit the exact
name you entered to your instructor. Obtain the
number that is shown as a result for total assets
on the Assets, Liabilities, and Equity In tab.
Submit the number for total assets to your
instructor. Differentiate among the various
capital budget evaluation techniques. Explain how
these different techniques would help you make
your recommendation to Guillermo. Recommend a
course of action based on a capital budget
evaluation technique and include present value
calculations as part of your recommendation.
Submit your assignment as an attachment of no
more than 1,050 words.
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ACC 543 EDU The learning interface
ACC 543 Entire Course (UOP) FOR MORE CLASSES
VISIT www.acc543edu.com ACC 543 Flexible Budgets
Team Paper ACC 543 Capital Budget
Recommendation ACC 543 Aspects of Employment and
Environment Paper and PowerPoint ACC 543 Exercise
24-1 Net Present Value/Present Value Index ACC
543 Exercise 24-8A Determining the Internal Rate
of Return ACC 543 Exercise 24-6A Determining Net
Present Value ACC 543 Exercise 24-5B Purchase of
Popcorn Machine ACC 543 Exercise 24-5A
Determining net present value ACC 543 Exercise
24-4A Determining the present value of an
annuity ACC 543 Exercise 24-3A Present Value
Analysis ACC 543 Exercise 22-6A Using a flexible
budget to accommodate market uncertainty ACC 543
Exercise 19-24A Assessing Simultaneous Changes
in CVP Relationships ACC 543 Exercise 18-17B
Process Cost System Cost of Production Report ACC
543 Exercise 22-6A Using a flexible budget to
accommodate market uncertainty
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ACC 543 EDU The learning interface
ACC 543 Exercise 15-6B (UOP) FOR MORE CLASSES
VISIT www.acc543edu.com Exercise 15-6B Fixed
versus variable cost behavior Professional Chairs
Corporation produces ergonomically designed
chairs favored by architects. The company
normally produces and sells from 5,000 to 8,000
chairs per year. The following cost data apply to
various production activity levels. Required a.
Complete the preceding table by filling in the
missing amounts for the levels of activity shown
in the first row of the table. b. Explain why the
total cost per chair decreases as the number of
chairs increases
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ACC 543 EDU The learning interface
ACC 543 Exercise 15-12B (UOP) FOR MORE CLASSES
VISIT www.acc543edu.com Exercise 15-12B Effect
of cost structure on projected profits Logan and
Martin compete in the same market. The following
budgeted income statements illustrate their cost
structures. Required a. Assume that Logan can
lure all 80 customers away from Martin by
lowering its sales price to 75 per customer.
Reconstruct Logans income statement based on 160
customers. b. Assume that Martin can lure all 80
customers away from Logan by lowering its sales
price to 75 per customer. Reconstruct Martins
income statement based on 160 customers. c. Why
does the price-cutting strategy increase Logans
profits but result in a net loss for Martin?
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ACC 543 EDU The learning interface
ACC 543 Exercise 15-17A Identifying Cost Behavior
(UOP) FOR MORE CLASSES VISIT www.acc543edu.com E
xercise 15-17A Identifying Cost Behavior
Identify the following costs as fixed or
variable. Costs related to plane trips between
San Diego, California, and Orlando, Florida,
follow. Pilots are paid on a per trip basis. a.
Pilots salaries relative to the number of trips
flown. b. Depreciation relative to the number of
planes in service. c. Cost of refreshments
relative to the number of passengers. d. Pilots
salaries relative to the number of passengers on
a particular trip. e. Cost of a maintenance check
relative to the number of passengers on a
particular trip. f. Fuel costs relative to the
number of trips. National Union Bank operates
several branch offices in grocery stores. Each
branch employs a supervisor and two tellers. g.
Tellers salaries relative to the number of
tellers in a particular district. h. Supplies
cost relative to the number of transactions
processed in a particular branch. i. Tellers
salaries relative to the number of customers
served at a particular branch. j. Supervisors
salaries relative to the number of branches
operated..
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ACC 543 EDU The learning interface
ACC 543 Exercise 16-9A (UOP) FOR MORE CLASSES
VISIT www.acc543edu.com Exercise 16-9A Mimosa
Corporation expects to incur indirect overhead
costs of 72,000 per month and direct
manufacturing costs of 11 per unit. The expected
production activity for the first four months of
2007 is as follows. Required a. Calculate a
predetermined overhead rate based on the number
of units of product expected to be made during
the first four months of the year. b. Allocate
overhead costs to each month using the overhead
rate computed in Requirement a. c. Calculate the
total cost per unit for each month using the
overhead allocated in Requirement b.
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ACC 543 EDU The learning interface
ACC 543 Exercise 18-17A (UOP) FOR MORE CLASSES
VISIT www.acc543edu.com Exercise 18-17A Hamby
Company had 250 units of product in its work in
process inventory at the beginning of the period
and started 2,000 additional units during the
period. At the end of the period, 750 units were
in work in process inventory. The ending work in
process inventory was estimated to be 60 percent
complete. The cost of work in process inventory
at the beginning of the period was 3,420, and
27,000 of product costs was added during the
period
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ACC 543 EDU The learning interface
ACC 543 Exercise 18-17B Process Cost System Cost
of Production Report (UOP) FOR MORE CLASSES
VISIT www.acc543edu.com Exercise 18-17B Process
Cost System Cost of Production Report At the
beginning of 2004, Dozier Company had 1,800 units
of product in its work in process inventory, and
it started 19,200 additional units of product
during the year. At the end of the year, 6,000
units of product were in the work in process
inventory. The ending work in process inventory
was estimated to be 50 percent complete. The cost
of work in process inventory at the beginning of
the period was 9,000, and 108,000 of product
costs was added during the period. Required
Prepare a cost of production report showing the
following. a. The number of equivalent units of
production. b. The product cost per equivalent
unit. c. The total cost allocated between the
ending Work in Process Inventory and Finished
Goods Inventory accounts.
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ACC 543 EDU The learning interface
ACC 543 Exercise 19-24A Assessing Simultaneous
Changes in CVP Relationships (UOP) FOR MORE
CLASSES VISIT www.acc543edu.com Exercise 19-24A
Assessing Simultaneous Changes in CVP
Relationships Green Shades Inc. (GSI) sells
hammocks variable costs are 75 each, and the
hammocks are sold for 125 each. GSI incurs
250,000 of fixed operating expenses annually.
Required a. Determine the sales volume in units
and dollars required to attain a 50,000 profit.
Verify your answer by preparing an income
statement using the contribution margin format.
b. GSI is considering implementing a quality
improvement program. The program will require a
10 increase in the variable cost per unit. To
inform its customers of the quality improvements,
the company plans to spend an additional 20,000
for advertising. Assuming that the improvement
program will increase sales to a level that is
3,000 units above the amount computed in
Requirement a, should GSI proceed with plans to
improve product quality? Support your answer by
preparing a budgeted income statement. c.
Determine the new break-even point in units and
sales dollars as well as the margin of safety
percentage, assuming that the quality improvement
program is implemented.
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ACC 543 EDU The learning interface
ACC 543 Exercise 22-6A Using a flexible budget to
accommodate market uncertainty (UOP) FOR MORE
CLASSES VISIT www.acc543edu.com Exercise 22-6A
Using a flexible budget to accommodate market
uncertainty According to its original plan, Katta
Consulting Services Company would charge its
customers for service at 200 per hour in 2006.
The company president expects consulting services
provided to customers to reach 40,000 hours at
that rate. The marketing manager, however, argues
that actual results may range from 35,000 hours
to 45,000 hours because of market uncertainty.
Kattas standard variable cost is 90 per hour,
and its standard fixed cost is 3,000,0
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ACC 543 EDU The learning interface
ACC 543 Exercise 24-1 Net Present Value/Present
Value Index (UOP) FOR MORE CLASSES VISIT
www.acc543edu.com Exercise 24-1 Net Present
Value/Present Value Index The management team at
Savage Corporation is evaluating two alternative
capital investment opportunities. The first
alternative, modernizing the companys current
machinery, costs 45,000. Management estimates
the modernization project will reduce annual net
cash outflows by 12,500 per year for the next
five years. The second alternative, purchasing a
new machine, costs 56,500. The new machine is
expected to have a five-year useful life and a
4,000 salvage value. Management estimates the
new machine will generate cash inflows of 15,000
per year. Savages cost of capital is 10.
Required a. Determine the present value of the
cash flow savings expected from the modernization
program. b. Determine the net present value of
the modernization project. c. Determine the net
present value of investing in the new machine. d.
Use a present value index to determine which
investment alternative will yield the higher rate
of return.
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ACC 543 EDU The learning interface
ACC 543 Exercise 24-3A Present Value Analysis
(UOP) FOR MORE CLASSES VISIT www.acc543edu.com E
xercise 24-3A Present Value Analysis Ginger
Smalley expects to receive a 300,000 cash
benefit when she retires five years from today.
Ms. Smalleys employer has offered an early
retirement incentive by agreeing to pay her
180,000 today if she agrees to retire
immediately. Ms. Smalley desires to earn a rate
of return of 12 percent. Required a. Assuming
that the retirement benefit is the only
consideration in making the retirement decision,
should Ms. Smalley accept her employers offer?
b. Identify the factors that cause the present
value of the retirement benefit to be less than
300,000.
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ACC 543 EDU The learning interface
ACC 543 Exercise 24-4A Determining the present
value of an annuity (UOP) FOR MORE CLASSES VISIT
www.acc543edu.com Exercise 24-4A Determining the
present value of an annuity The dean of the
School of Social Science is trying to decide
whether to purchase a copy machine to place in
the lobby of the building. The machine would add
to student convenience, but the dean feels
compelled to earn an 8 percent return on the
investment of funds. Estimates of cash inflows
from copy machines that have been placed in other
university buildings indicate that the copy
machine would probably produce incremental cash
inflows of approximately 8,000 per year. The
machine is expected to have a three-year useful
life with a zero salvage value. Required a. Use
Present Value Table 1 in Appendix A to determine
the maximum amount of cash the dean should be
willing to pay for a copy machine. b. Use Present
Value Table 2 in Appendix A to determine the
maximum amount of cash the dean should be willing
to pay for a copy machine. c. Explain the
consistency or lack of consistency in the answers
to Requirements a b.
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ACC 543 EDU The learning interface
ACC 543 Exercise 24-5A Determining net present
value (UOP) FOR MORE CLASSES VISIT
www.acc543edu.com Exercise 24-5A Determining net
present value Transit Shuttle Inc. is considering
investing in two new vans that are expected to
generate combined cash inflows of 20,000 per
year. The vans combined purchase price is
65,000. The expected life and salvage value of
each are four years and 15,000, respectively.
Transit Shuttle has an average cost of capital of
14 percent. Required a. Calculate the net present
value of the investment opportunity. b. Indicate
whether the investment opportunity is expected to
earn a return that is above or below the cost of
capital and whether it should be accepted.
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ACC 543 EDU The learning interface
ACC 543 Exercise 24-5B Purchase of Popcorn
Machine (UOP) FOR MORE CLASSES VISIT
www.acc543edu.com Exercise 24-5B Purchase of
Popcorn Machine Heidi Kahn, manager of the Grand
Music Hall, is considering the opportunity to
expand the companys concession revenues.
Specifically, she is considering whether to
install a popcorn machine. Based on market
research, she believes that the machine could
produce incremental cash inflows of 1,600 per
year. The purchase price of the machine is
5,000. It is expected to have a useful life of
three years and a 1,000 salvage value. Ms. Kahn
has established a desired rate of return of 16
percent.
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ACC 543 EDU The learning interface
ACC 543 Exercise 24-6A Determining Net Present
Value (UOP) FOR MORE CLASSES VISIT
www.acc543edu.com Exercise 24-6A Determining
Net Present Value Travis Vintor is seeking
part-time employment while he attends school. He
is considering purchasing technical equipment
that will enable him to start a small training
services company that will offer tutorial
services over the Internet. Travis expects demand
for the service to grow rapidly in the first two
years of operation as customers learn about the
availability of the Internet assistance.
Thereafter, he expects demand to stabilize. The
following table presents the expected cash flows.
In addition to these cash flows, Mr. Vintor
expects to pay 8,400 for the equipment. He also
expects to pay 1,440 for a major overhaul and
updating of the equipment at the end of the
second year of operation.
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ACC 543 EDU The learning interface
ACC 543 Exercise 24-8A Determining the Internal
Rate of Return (UOP) FOR MORE CLASSES VISIT
www.acc543edu.com Exercise 24-8A Determining
the Internal Rate of Return Medina Manufacturing
Company has an opportunity to purchase some
technologically advanced equipment that will
reduce the companys cash outflow for operating
expenses by 1,280,000 per year. The cost of the
equipment is 6,186,530.56. Medina expects it to
have a 10-year useful life and a zero salvage
value. The company has established an investment
opportunity hurdle rate of 15 percent and uses
the straight-line method for depreciation.
Required a. Calculate the internal rate of return
of the investment opportunity. b. Indicate
whether the investment opportunity should be
accepted.
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ACC 543 EDU The learning interface
ACC 543 Flexible Budgets Team Paper (UOP) FOR
MORE CLASSES VISIT www.acc543edu.com Flexible
Budgets Team Paper Write a paper of no more than
1,050 words in which you discuss flexible
budgets. Explain the relationship between fixed
and variable costs used in a flexible budget.
Discuss the differences between static and
flexible budgets and how a flexible budget lends
itself to a cost-volume-profit analysis. Format
your paper consistent with APA guidelines
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ACC 543 EDU The learning interface