accounting for merchandise inventoryobtain the annual reports of as many companies 738636

Copyright © 2014 Pearson Canada Inc.Group Projects – Chapter 6:Accounting for Merchandise InventoryObtain the annual reports of as many companies as you have team members—one company per team member. Most companies post their financial statements on their websites, or you can get the reports from Required1. Identify the inventory method used by each company. 2. Compute each company’s gross margin percentage and rate of inventory turnover for the most recent two years.3. For the industries of the companies you are analyzing, obtain the industry averages for gross margin percentage and inventory turnover from Robert Morris Associates, Annual Statement Studies or Dun and Bradstreet, Industry Norms and Key Business Ratios. 4. How well does each of your companies compare to the average for the industry? What insight about your companies can you glean from these ratios?

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Group Projects – Chapter 6: Accounting for Merchandise Inventory Obtain the annual reports of as many companies as you have team members—one company per team member. Most companies post their financial statements on their websites, or you can get the reports from Required 1. Identify the inventory method used by each company. 2. Compute each company’s gross margin percentage and rate of inventory turnover for the most recent two years. 3. For the industries of the companies you are analyzing, obtain the industry averages for gross margin percentage and inventory turnover from Robert Morris Associates, Annual Statement Studies or Dun and Bradstreet, Industry Norms and Key Business Ratios. 4. How well does each of your companies compare to the average for the industry? What insight about your companies can you glean from these ratios? Copyright © 2014 Pearson Canada Inc.


harper acquires 40 percent of the outstanding voting stock of kinman company on janu 738683

Harper acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2014, for $243,700 in cash. The book value of Kinman’s net assets on that date was $460,000, although one of the company’s buildings, with a $74,200 carrying amount, was actually worth $118,450. This building had a 10 year remaining life. Kinman owned a royalty agreement with a 20 year remaining life that was undervalued by $105,000.

Kinman sold inventory with an original cost of $126,000 to Harper during 2014 at a price of $180,000. Harper still held $20,400 (transfer price) of this amount in inventory as of December 31, 2014. These goods are to be sold to outside parties during 2015.

Kinman reported a $50,600 net loss and a $28,300 other comprehensive loss for 2014, The company still manages to declare a $18,000 cash dividend during the year.

During 2015, Kinman reported a $57,800 net income and declared cash dividend of $20,000. It made additional inventory sales of $134,000 to Harper during the period. The original cost of the merchandise was $83,750. All but 30 percent of this inventory had been resold to outside parties by the end of the 2015 fiscal year.

hi there i got a management accounting assignment to do can you help me with this my 738696

  • Brinkers’ Bicycle Shop: A Special Order Decision

Your analysis should include the following steps, to the extent logical and possible, given the character of the case:

  • Identify and describe or explain the problem that the managers of the organization in question are encountering. What has happened to make the managers realize that the problem has arisen? What is the likely cause of the problem? Why is the problem important?
  • Analyze the problem, using tools and concepts that we have been studying, as well as your general business and management knowledge. Analyze the situation from a quantitative perspective, using the data available in the case, and from operational, qualitative and strategic perspectives. Use diagrams/tables to conduct your analysis and to report your findings. Your analysis should show that you can use these tools and concepts and the language of management accounting correctly and articulately.
  • Draw conclusions regarding the nature of the problem and possible solutions, and develop recommendations for the managers in question.

Write a memorandum to the organization’s managers that summarizes your analysis, findings and recommendations. The memo should contain:

  • An introductory paragraph which explains the purpose of the memo and summarizes the analysis that you have conducted, your findings and your recommendations.
  • One or more paragraphs that describe and explain in some detail the problem(s) that you have identified, the analysis that you have conducted, your findings and conclusions, and your recommendations. If you have made any assumptions in conducting your analysis, be sure to state them clearly and to justify them. Also, be certain to describe any limitations of your analysis, for example, data which is not available but would be useful.
  • The memo itself should only be a few pages. Attach one or more appendices that include diagrams and tables, for example, your spreadsheet analysis, to support your analysis and conclusions. Present and number the diagrams/tables in the order in which you refer to them in the body of your memo.
  • The memo and appendices should have professional tones and writing styles and must be typed.
  • This offer is the greatest thing that’s happened to us since we started this business!”

    Hans “Five speed” Brinker, founding partner, Brinkers’ Bicycle Shop

    “Just slow down a minute, Five … there could be a lot more to this decision than first meets the eye …”

    Wilbur Brinker, founding partner, Brinkers’ Bicycle Shop

    Hans and Wilbur Brinker turned their passion for tinkering with bikes, building customized bicycles, and racing into their own bicycle shop just two years ago. They currently produce: a standard model five speed bicycle for amateur touring and racing, customized versions of that bicycle for more serious racers, and customized mountain and sand bikes. The standard model has become well known for its value, that is, for its high quality and reasonable price. It now accounts for nearly half of the shop’s monthly sales. The following table contains details regarding the standard model’s sales, costs and revenues.

    The Brinkers also provide high quality, reasonably priced customization and repair services. The Brinkers’ monthly sales are finally generating enough contribution margin to cover the shop’s fixed costs and leave a small but reliable positive net operating income. In fact, the Brinkers are doing so well that they are on the verge of needing more shop and storage space. The business next door is willing to rent them a suitable space for $600 per month.

    The Brinkers currently employ one full time employee, Orville Quinn, to assist in organizing parts before assembling bicycles, assembling the bicycles themselves, and testing newly assembled bicycles for performance quality, as well as serving customers. In addition to collaborating with customers on their bicycles’ designs, Quinn takes orders and takes customers for trial rides. Brinkers employ Quinn for eight hours per day, 25 days per month, at $15 per hour. On average, it takes about four hours to carry out all of these activities for a given sale, so Quinn can be considered able to assemble and test about two bicycles per day.

    As evident from the quotes above, Five speed and Wilbur Brinker are beginning to discuss an offer that they have just received from a small, local retail chain of sporting goods stores, Sports City. Sports City would like to purchase fifty of the standard model five speed bicycle per month under a three month contract for $200 per bike. The bikes would be produced in three colors unique to Sports City and bear the Sports City logo. Sports City, in turn, would sell the bikes in their stores for $250 each. If the bikes sell well, Sports City will likely offer the Brinkers a second six month contract for 75 bicycles per month under the similar terms.

    Should the Brinkers accept this offer right away? What quantitative factors and what operational, qualitative or strategic factors should Five speed and Wilbur take into account in making this decision?

    Imagine that you are a summer intern working for the Brinkers. Please conduct an analysis of this situation and develop a recommendation for the Brinkers. Then write a memorandum to Hans and Wilbur Brinker in which you characterize the problem that they are encountering and identify its causes, summarize the analysis that you have conducted, and make your recommendation. Please support your analysis with pertinent tables or exhibits.


read the following articles as well as any other published pieces that describe the 738122

Read the following articles as well as any other published pieces that describe the work of the ac countant in bankruptcy cases:

“Restructuring for a Positive Return,” CMA Mana g ement, December 2005/January 2006. “Alternatives to Bankruptcy Liquidation,” A g en c y Sale s , February 2005.

“Management Accounting—How a Workout Specialist Operates,” J ournal of Accountan c y ,

January 1992.

“Fresh start Reporting: An Opportunity for Debtor Companies Emerging from Bankruptcy,”

American Bankrupt c y J ournal , July/August 2009.

“Statements of Financial Affairs and Schedules as a Corporate X Ray,” American Bankrupt c y

Institute J ournal , March 2010.

“Fresh Start Accounting Becomes Part of the Daily Financial Intake,” American Bankrupt c y

Institute J ournal , February 2010.

“Assisting Troubled Business Clients: A Midsize Dilemma for CPAs,” J ournal of Accountan c y ,

March 2008.

“Stanford Business School Research: Financial Statements Are Still Valuable Tools for Pre dicting Bankruptcy,” Business Wi r e , May 12, 2006.

Requi r ed

Write a report describing the services that an accountant can perform during a corporate bank ruptcy. Include activities to be carried out prior to filing a petition and thereafter.

read the following article titled government names 250 carbon tax paying firms and a 736962

Submission Date:

Weighting: Instructions:

ACC307–Accounting Theory

6 Dec 2014 before 4.00 pm
The assignment is worth 40% of the total unit weight.

  1. Students are required to complete three case studies.

  2. Your answer must be both uploaded to Moodle in word file and

    handed over a printed copy with signed coversheet.

  3. You need to support your answers with appropriate Harvard / APA

    style references where necessary.

  4. Only include information in your appendixes that has been

    directly referred to in the body of your document.

  5. Include a title/cover page containing the subject title and code and

    the name, student id numbers.

  6. Please save the document as ACC307AT1_first name_Surename

    _Student Number Eg:ACC307AT1_John_Smith_20140000


Case Study 1 (1000 words)

Read the following article titled“Government names 250 carbon tax paying firms”and answer the following questions:

  1. Whichtheoryofregulationcanbeusedtoexplainthegovernment’scarbontaxpolicy?

  2. Do you think Independent MP Rob Oakeshotthas been “captured” by businesses in rejecting a

    floor price on carbon?

  3. Which theory of regulation can be used to explain the actions of Former NSW premier Kristina

    Keneally to urge Prime Minister Julia Gillard to dump the carbon tax policy?

Companies such as ALCOA, BHP Billiton, Boral and La Trobe University are among about 250 companies that will pay the carbon tax when it is introduced on July 1.

The Clean Energy Regulator has today published an initial list of 250 ”liable entities” that will face the $23 per tonne tax. However, a further 80 companies have also notified that they are likely to face the new tax in the 2012 2013 financial year.

It says these companies and facilities will account for more than 95 per cent of emissions covered by the carbon price mechanism. The list will continually be updated.

Other entities listed by the regulator today include the Brisbane City Council, BlueScope Steel, the City of Armadale, Rio Tinto and Thales.

The government has been estimating that about 500 companies would pay the carbon tax.

“I think we’ll come in underneath 500 but it is a matter for the regulator to determine,” Climate Change Minister Greg Combet said.

Mr Combet said the initial list was based on greenhouse emissions reporting by companies over the last four to five years.

Oakeshott threat

This comes as Independent MP Rob Oakeshott is threatening to block a key element of the government’s carbon scheme.

Mr Oakeshott was a member of the multi party committee that developed the scheme but says he wants the floor price on carbon scrapped because it will harm business.

The Member for Lyne said he may vote against regulations to introduce a floor price because he wanted businesses to have the flexibility to buy cheaper carbon permits overseas when the emissions trading scheme is introduced.

“It is certainly one of the options, as is reconvening the multi party climate change committee and trying to renegotiate some of the aspects,” he told the ABC.

The carbon tax is due to come in on July 1. It will operate at a fixed price for three years before moving to an emissions trading scheme in 2015. But even then, there will be a floor price to limit how low it can go until 2018.

Mr Combet said he spoke to Mr Oakeshott about his position last night and they would continue with discussions, but that the independent’s views were no surprise.

”This has been his position,” Mr Combet told reporters in Canberra.

Government names 250 carbon tax paying firms


”His view was always that the sooner we get to a fully flexible price the better.”

Future issue

Prime Minister Julia Gillard said that the floor price was a question for the future.
”Making a regulation about a price floor will happen at some time in the future,” she told reporters in Melbourne today.

”We are consulting on how to do the floor price and there’s certainly no rush in that process.”

But the Greens argue scrapping the floor price would hurt both business certainty and action on climate change.

“Speculation about disallowing the floor price regulations sends a strong signal of uncertainty to business and, because of that, I will be asking Mr Oakeshott to reaffirm his commitment to the climate package as negotiated,” Greens leader Christine Milne said in a statement this afternoon.

“Mr Oakeshott understands that the Climate Change Committee negotiated a package as a whole where each element has impacts on all others.”

The week the government had faced continued criticism of the carbon tax from both the Coalition and Labor members.

Former NSW premier Kristina Keneally who went to the state election last year in support of the carbon tax urged Ms Gillard to dump or “dial back” the tax in a bid to save herself at the next election.

by Judith Ireland, Sydney Morning Herald, May 4 2012

Case Study 2 (1000 words)

Sustainability on mining forum agenda

Read the article “Sustainability on mining forum agenda” and use both Legitimacy Theory and Stakeholder Theory to explain why the gold mining industry will emphasise the sustainability issue in the forum.

A forum starting in Western Australian gold mining city Kalgoorlie today will examine the importance of sustainability within the resources industry.

The inaugural Sustainable Mining Conference will hear from a number of gold mining industry representatives over three days.

Forum chairman Morrie Goodz says the aim is to develop plans to ensure the long term future of the mining sector and maximise benefits to both companies and the community.

“This is done by careful planning and communication between all the stakeholders,” he said.

From ABC news, August 17, 2010.


Case Study 3 (1000 words)

Read the article ‘Life’s sweet: $4m for CSR chief’ and answer the following questions:

  1. ApplyingAgentTheoryandPositiveAccountingTheory,explainhowdidCSRprovideboth short term and long term incentives to the executives and make sure their interests is aligned with those of shareholders?

  2. A large component of Mr Brennan’s remuneration package is holding CSR shares. What problems are associated with this reward scheme in Mr Brennan’s case?

  3. On July 12011, a ‘two strikes’law came into effect. This law is designed to hold directors accountable for executive salaries and bonuses. It means an entire company board can face re election if shareholders disagree with how much executives are being paid.

CPA Australia made a submission to the Australian government and suggested introducing a ‘two strikes’ test as a replaceable rule to give greater discretion to its application.

Evaluate the role of the new legislation, the Australian government, CPA Australia from a critical perspective.

Life’s sweet: $4m for CSR chief

CSR chief executive and managing director Alec Brennan has been rewarded for boosting earnings with a hefty 43 per cent pay rise this year to $4.1 million, up from $2.9 million in 2004.

Mr Brennan received $1.16 million in salary, $715,000 in short term bonuses and $1.6 million in long term incentives for the full year ending 31 March, compared with his total package of $2.9 million last year, which included $600,000 in shirt term incentives and 393,018 in long term bonuses.

Mr Brennan, who joined the sugar, building and construction materials company in 1969, hadincreased the company’s net income by 79 per cent to $287 million.

The earnings lift came as sugar demand soared in Asia where a two year drought in India and Thailand hot sugar crops and helped drive up raw sugar prices. Sugar earnings more than doubled to $89.8 million from $37.6 million a year ago.

Mr Brenan became managing director in 2003 after the company split with cement producer Rinker, leaving CSR with sugar, building materials and aluminium business.

At the time of the demerger CSR’s market capitalisation was $ 1.5 billion. In two years it was frownto more than $2.2 billion.

Mark Ebbinghaus of UBS said CSR had performed strongly in a challenging market for the building materials company which also faced volatile sugar prices.

‘Mr Brennan’s performance has exceeded expectations. He is known for running the business verytightly and is respected as a long sighted chief executive.’

The company explained that the majority of Mr Brennan’s remuneration is ‘dependent on increasing shareholder value’.


‘Short term incentive rewards performance in a given year– CSR’ net profit before significant items was up 25.3 per cent $201 million (including significant items it was up 79 per cent to $287 million). Cash flow was also up 10.5 per cent to $321 million and dividend increased to 12c from 11c. Alec has chosen to acquire CSR shares with his total short term incentive of $715,000 for the year.

‘A long term incentive of 750,000 shares (1.6 million) was purchased during the year as CSR’s totalshareholder return (share price plus dividend) was in the top quartile of companies in the ASX 200 accumulation index.’

The company stressed that all shares purchased under the incentive scheme were bought on marketand ‘therefore not dilutive to shareholders’.

Mr Brennan now had 3.1 million CSR shares.CRS’s shares rose 1c to close at $2.6 yesterday.The Australian, 16 June 2005



questions on fund t ransactions aic p a adapted the following information relates to 733869

Questions on Fund T ransactions [AIC P A Adapted]

The following information relates to Dane City during its fiscal year ended December 31, 20X2:

1. On October 31, 20X2, to finance the construction of a city hall annex, Dane issued 8 percent,

10 year general obligation bonds at their face value of $600,000. Construction expenditures during the period equaled $364,000.

2. Dane reported $109,000 from hotel room taxes restricted for tourist promotion in a special rev enue fund. The fund paid $81,000 for general promotions and $22,000 for a motor vehicle.

3. Dane transferred 20X2 general fund revenues of $104,500 to a debt service fund and used them to repay $100,000 of 9 percent, 15 year term bonds and to pay $4,500 of interest. The bonds were used to acquire a citizens’ center.

4. At December 31, 20X2, as a consequence of past services, city firefighters had accumulated entitlements for compensated absences of $86,000. General fund resources available at Decem ber 31, 20X2, are expected to be used to settle $17,000 of this amount, and $69,000 is expected to be paid out of future general fund resources.

5. At December 31, 20X2, Dane was responsible for $83,000 of outstanding general fund encum brances, including the $8,000 for supplies in the following table.

6. Dane uses the purchases method to account for supplies. The following information relates to supplies:


$ 39,000



Encumbrances outstanding—1/1/X2




Purchase orders during 20X2


Amount credited to vouchers payable during 20X2



For items 1 through 10, determine the amounts based solely on the preceding information.

1. What is the amount of 20X2 general fund transfers out?

2. How much should be reported in 20X2 as general fund liabilities from entitlements for compensated absences?

3. What is the 20X2 assigned amount of the general fund balance?

4. What is the 20X2 capital projects fund balance?

5. What is the 20X2 fund balance on the special revenue fund for tourist promotion?

6. What is the amount of 20X2 debt service fund expenditures?

7. What amount should be included in the government wide financial statements for the cost of long term assets acquired in 20X2?

8. What amount stemming from the 20X2 transactions and events decreased the long term debt liabilities reported in the government wide financial statements?

9. Using the purchases method, what is the amount of 20X2 supplies expenditures?

10. What was the total amount of 20X2 supplies encumbrances?

a describe and interpret how the recent five year trend in the components of r0ce de 732468

a. Describe and interpret how the recent five year trend in the components of R0CE, determine the R0CE for both Nike and Reebok.

b. Recommend a ‘buy’ on one of these companies based on your analysis. Support your recommendation with reference to your analysis in part (a.).

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Mini Case 1: While you are an analyst at Investment Counselors Inc., the senior portfolio manager at your firm makes a decision to increase sporting goods apparel manufacturer stocks in the firm’s managed funds. You are assigned to recommend one stock as an initial investment to meet this long run objective. You diligently analyze and evaluate all communication stocks and narrow, the decision to two athletic shoe manufacturing companies: Nike and Reebok. The senior portfolio manager requests that you analyze the internal sources of earnings growth for each company. You decide to disaggregate and evaluate the internal growth components for each company to explain any trends in your variable of interest, return on common equity. You identify the key components driving ROCE and develop the following spread sheet: Nike?Year 5?Year 4?Year 3?Year 2?Year 1??Return on equity (ROCE)?21.6%?12.1%?18.1%?17.8%?18.5%??Return on net operating assets (RN0A)?19.2%?15.5%?14.2%?13.4%?13.3%??Financial leverage (LEV)?14.4%?24.8%?32.8%?41.3%?46.0%??Sales growth?14.55%?8.13%?4.26%?5.49%?2.49%??Gross profit margin?42.9%?41.0%?39.3%?39.0%?39.9%??SG&A expense/Sales?32.7%?31.9%?31.4%?30.6%?31.5%??N0PAT/Sales?7.8%?7.1%?7.0%?6.6%?6.8%??NOA turnover?2.44?2.19?2.03?2.02?1.96??Receivables turnover?5.83?5.50?5.78?5.95?5.79??Average collection period?62.62?66.33?63.19?61.37?63.09??Inventory turnover?4.45?4.37?4.29?4.03?4.13??Average inventory days outstanding?82.07?83.50?85.04?90.54?88.37??Long term operating asset turnover?6.56?5.46?4.67?4.47?4.18??Accounts payable turnover?10.48?11.72?12.83?11.86?10.62??Average payable days outstanding?34.84?31.13?28.46?30.78?34.36?????????Reebok???????Return on equity (R0CE)?15.7%?15.1%?15.0%?13.4%?1.9%??Return on net operating assets (RN0A)?12.7%?12.3%?12.1%?10.1%?7.9%??Financial leverage (LEV)?36.7%?44.5%?53.8%?78.8%?101.0%??Sales growth?11.43%?4.51%?4.45%? 1.19%? 10.07%??Gross profit margin?38.4%?38.3%?36.7%?37.9%?38.5%??SG&A…




charter corporation which began business in 2013 appropriately uses the installment 695902

Charter Corporation, which began business in 2013, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales during 2013 and 2014:

2013 2014
Installment sales$360,000$350,000
Cost of installment sales234,000245,000
Cash collections on installment sales during:


Prepare summary journal entries for 2013 and 2014 to account for the installment sales and cash collections. The company uses the perpetual inventory system.

should i throw the stock warrants away a stock warrant entitles the owner to buy a s 692550

Should I Throw the Stock Warrants Away?

A stock warrant entitles the owner to buy a specified number of shares of stock at a specified price. Landon Davis owns 1,000 stock warrants. Each warrant entitles him to buy one share of Plum Street Company common stock for $50. The current market price of a share of Plum Street common is $40. Because the warrant price is higher than the current market price, Landon has decided that his warrants are worthless and is going to throw them away. Do the warrants have any value? How would you explain to Landon the factors that influence the value of a stock warrant?