Chickadee Ski Club-Matt (ARR)

Happy Trails, Inc., is a popular family resort just outside Yellowstone National Park. Summeris the resort’s busy season, but guests typically pay a deposit at least six months in advanceto guarantee their reservations.The resort is currently seeking new investment capital in order to expand operations. Themore profitable Happy Trails appears to be, the more interest it will generate from potentialinvestors. Ed Grimm, an accountant employed by the resort, has been asked by his boss toinclude $2 million of unearned guest deposits in the computation of income for the currentyear. Ed explained to his boss that because these deposits had not yet been earned theyshould be reported in the balance sheet as liabilities, not in the income statement asrevenue. Ed argued that reporting guest deposits as revenue would inflate the current year’sincome and may mislead investors.Ed’s boss then demanded that he include $2 million of unearned guest deposits in thecomputation of income or be fired. He…

Ethics and the Manager Venice InLine, Inc., was founded by Russ Perez to produce a specialized in-line skate he had designed for doing aerial tricks. Up to this point, Russ has financed the company with his own savings and with cash generated by his business. However, Russ now faces a cash crisis. In the year just ended, an acute shortage of high-impact roller bearings developed just as the company was beginning production for the Christmas season. Russ had been assured by his suppliers that the roller bearings would be delivered in time to make Christmas shipments, but the suppliers were unable to fully deliver on this promise. As a consequence, Venice InLine had large stocks of unfinished skates at the end of the year and was unable to fill all of the orders that had come in from retailers for the Christmas season. Consequently, sales were below expectations for the year, and Russ does not have enough cash to pay his creditors. Well before the accounts payable were due, Russ visited…

Fordson Bank operates a branch in a relatively small rural community. Fordson has a strong customer service focus and knows that branch visits can be important in fostering a reputation for good customer service. However, as internet banking increases in popularity, the financial staff at Fordson question whether the costs of the branch are worth it. As part of looking at the question, a financial analyst has collected monthly data on the number of customer visits to the branch and the operating cost of the branch over the last fiscal year. The data follow: Month Customer Visits 1 2 3 4 5 6 7 8 10 12 962 1,378 1,170 1,014 1,586 1,222 1,144 1,248 1,430 1,040 1,092 1,066 Branch Cost $ 71,534 90,046 80,790 73,848 99,302 83,104 79,633 84,261 Branch cost= 92,360 75,005 77,319 76,162 Required: a. Estimate the monthly fixed costs and the unit variable cost per customer visit using the high-low estimation method. Note: Round variable cost per unit to 2 decimal places. per visit Customer visits

Planning and control decisions. Gavin Adams is the president of Trusted Pool Service. He takes the following actions, not necessarily in the order given. For each action state whether it is a planning decision or a control decision. Adams decides to expand service offerings into an adjacent market. Adams calculates material costs of a project that was recently completed. Adams weighs the purchase of an expensive new excavation machine proposed by field managers. Adams estimates the weekly cost of providing maintenance services next year to the city recreation department. Adams compares payroll costs of the past quarter to budgeted costs.

Toyota organizes every year two blood donation camps in Nizwa and Muscat. This activity is an example of managements attitude towards what?.   choose correct answer a.Competitors b.Customers c.Community d.Clients

Ethics and the Manager Richmond. Inc., operates a chain of 44 department stores. Two years ago, the board of directors of Richmond approved a large-scale remodeling of its stores to attract a more upscale clientele. Before finalizing these plans, two stores were remodeled as a test. Linda Perlman, assistant controller, was asked to oversee the financial reporting for these test stores, and she and other management personnel were offered bonuses based on the sales growth and profitability of these stores. While completing the financial reports. Perlman discovered a sizable inventory of outdated goods that should have been discounted for sale or returned to the manufacturer. She discussed the situation with her management colleagues; the consensus was to ignore reporting this inventory as obsolete because reporting it would diminish the financial results and their bonuses. Required: 1. According to the IMA’s Statement of Ethical Professional Practice, would it be ethical for Perlman not…

Happy Trails, Inc., is a popular family resort just outside Yellowstone National Park. Summer is the resort’s busy season, but guests typically pay a deposit at least six months in advance to guar-antee their reservations. The resort is currently seeking new investment capital in order to expand operations. The moreprofitable Happy Trails appears to be, the more interest it will generate from potential investors.Ed Grimm, an accountant employed by the resort, has been asked by his boss to include $2 millionof unearned guest deposits in the computation of income for the current year. Ed explained to hisboss that because these deposits had not yet been earned they should be reported in the balancesheet as liabilities, not in the income statement as revenue. Ed argued that reporting guest depositsas revenue would inflate the current year’s income and may mislead investors. Ed’s boss then demanded that he include $2 million of unearned guest deposits in the computa-tion of income or be…

suppose that your sister Angelina Humphrey is a manager of a regional glass producer. this company was recently acquired by Big Frame Ltd, the largest frame maker in victoria. in a meeting with Big Frame's management board, Angelina is informed that her business division is required to supply glass to the frame division. she is suggested to meet with the frame division's manager and discuss a transfer price. however, Angelina does not understand what transfer price means and how this term might affect her business division. required: briefly explain transfer pricing to angelina and how it will impact her business division's performance in the future.

Which of the following is NOT considered an Agency Problem? Multiple Choice The Chairman of the Board decides to throw his wife a lavish birthday party in Tahiti using company funds. A salesperson stops working after the commission payout has hit her annual limit. A manager makes a bad decision, but he has nothing to gain personally from it. The CEO of a company uses the company's jet for personal (non-business-related) travel. A purchasing manager passes up on a positive NPV project because he feels that his job will be in jeopardy if the project fails.

Betty’s Fashions operates retail stores in both downtown and suburban locations. The company has two responsibility centers: the City Division, which contains stores in downtown locations, and the Mall Division, which contains stores in suburban locations. Betty’s CEO is concerned about the profitability of the City Division, which has been operating at a loss for the last several years. The most recent City Division income statement follows. The CEO has asked for your advice on shutting down the City Division’s operations. If the City Division is eliminated, corporate administration is not expected to change, nor are any other changes expected in the operations or costs of the Mall Division.

Suppose that you have been given a summer job as an intern at Issac Aircams, a company that man- ufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. You have been asked to help prepare the financial statements and were given the following list of costs: Depreciation on salespersons’ cars. Rent on equipment used in the factory. Lubricants used for machine maintenance. Salaries of personnel who work in the finished goods warehouse. Soap and paper towels used by factory workers at the end of a shift. Factory supervisors’ salaries. Heat, water, and power consumed in the factory. Materials used for boxing products for shipment overseas. (Units are not normally boxed.) Advertising costs. Workers’ compensation insurance for factory employees. Depreciation on…

Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufacturessophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which isprivately owned, has approached a bank for a loan to help it finance its growth. The bank requires financialstatements before approving such a loan. You have been asked to help prepare the financial statements andwere given the following list of costs:1. Depreciation on salespersons’ cars.2. Rent on equipment used in the factory.3. Lubricants used for machine maintenance.4. Salaries of personnel who work in the finished goods warehouse.5. Soap and paper towels used by factory workers at the end of a shift.6. Factory supervisors’ salaries.7. Heat, water, and power consumed in the factory.8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.)9. Advertising costs.10. Workers’ compensation insurance for factory employees.11. Depreciation on chairs…

Managerial Accounting: An Overview Ethics and the Manager Richmond, Inc., operates a chain of 44 department stores. Two years ago, the board of directors of Richmond approved a large-scale remodelling of its stores to attract a more upscale clientele. Before finalizing these plans, two stores were remodelled as a test. Linda Perlman, assistant controller, was asked to oversee the financial reporting for these test stores, and she and other management personnel were offered bonuses based on the sales growth and profitability of these stores. While completing the financial reports, Perlman discovered a sizable inventory of outdated goods that should have been discounted for sale or returned to the manufacturer. She discussed the situation with her management colleagues; the consensus was to ignore reporting this inventory as obsolete because reporting it would diminish the financial results and their bonuses. Required: 1. According to the IMA’s Statement of Ethical Professional Practice,…

Ethics and the ManagerRichmond, Inc., operates a chain of 44 department stores. Two years ago, the board of directors of Richmond approved a large-scale remodelling of its stores to attract a more upscale clientele.Before finalizing these plans, two stores were remodelled as a test. Linda Perlman, assistant controller, was asked to oversee the financial reporting for these test stores, and she and other management personnel were offered bonuses based on the sales growth and profitability of these stores. While completing the financial reports, Perlman discovered a sizable inventory of outdated goods that should have been discounted for sale or returned to the manufacturer. She discussed the situation with her management colleagues; the consensus was to ignore reporting this inventory as obsolete because reporting it would diminish the financial results and their bonuses.1. Managerial Accounting2. Would it be easy for Perlman to take the ethical action in this situation?

Big Apple Design Company specializes in designing commercial office space in Chicago. The firm’s president recently reviewed the following income statement and noticed that operating profits were below her expectations. She had a hunch that certain customers were not profitable for the company and asked the controller to perform a customer-profitability analysis showing profitability by customer for the month of March. Required: Put yourself in the position of Big Apple’s controller and write a memo to the president to accompany the customer-profitability graph. Comment on the implications of the customer-profitability analysis and raise four or more questions that should be addressed by the firm’smanagement team.

Based on a cost-benefit analysis, management at First CommunityBank decided to contract with Technology Solutions, a local data center operator, tohost all of the bank’s financial reporting applications. To avoid the significant costsof developing and maintaining its own data center, First Community contracts withTechnology Solutions to provide IT server access in a highly secure, environmentallycontrolled data center facility owned by Technology Solutions. Similar to First Community,other businesses also contract with Technology Solutions to host applications at the samedata center.The bank is directly linked through highly secure telecommunication lines to the datacenter, which allows bank personnel to transmit data to and from the data center as if thedata center was owned by First Community. For a monthly fee, Technology Solutionssupports the server hardware in an environment with numerous backup controls in theevent power is lost or other hardware failures occur. Bank personnel…

Because the company is in a start-up stage, corporate management feels that the East sales territory is creating too much of a cash drain on the company and it should be eliminated. If East is discontinued, one sales manager (whose salary is P40,000 per year) will be relocated to the West territory. By how much would Opal’s income decrease if the East territory is eliminated?

Employee theft is the largest "expense" of a business in this country. The key to implementing controls is to determine the right amount. It is important to weigh the cost and benefit of each control. For example, if a company wishes to install security cameras to deter theft however it will cost $20,000 and would be expected to reduce theft less than that then the company may want to consider other options. Knowing that, what controls might be in place to avoid an executive making a decision that would personally benefit him?

GreenGrow Limited is a local landscaping company that does household and commercial landscaping. Primarily, they help business select plants and manage the plants. They also have regular maintenance contracts such as watering, weeding, and mowing. In the winter, they have some contracts for managing the indoor plants of shopping malls, and do snow clearing to help boost that low income season. Joey, the majority shareholder of GreenGrow is ecstatic. He has managed to come in as the low bidder for a new type of contract. He bid on the construction of a track for the track and field area of a local college. A piece of land on the north end of the college is being cleared and GreenGrow will be leveling the land and placing a bed of crushed stone for the track. Joey has just the right person to be in charge. Jack has previous experience working as an assistant on a road crew and knows how to use the surveying equipment needed to keep the track level. This is a big contract, representing…

Ameen trading company is a popular distributor in the Nizwa region having years of experience in the field of logisties and marketing. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced some financial struggles due to the pandemic - crisis. The company has decided to plan well for the current year based on the past performance so that the company will be able to regain its status. The management of the company has given with you the Income statement for the last year and asked you to calculate the gross profit and net profit margin. Partkular OMR Particular OMR Opening Stock Purchases Carriage and Freight Wages Gross Profit bd To 76,250 By Sales 315 250 "Closing stock 2,000 5,000 2,00,000 5,98500 1,01,000 By Gross Profit b/d 12000 Non-operating incomes 2,000 7 p00 *Dividend on shares 84 000 Profit on sale of shares 2,06,000 5,00,000 98,500 5,98,500 2,00,000 To Administration expenses…

Assume that you work for Greeble’s Sporting Goods, and your manager requests that you outline the pros and cons of discontinuing its Golf department. That department appears to be generating losses, and your manager believes that discontinuing it will increase overall store profits. Prepare a memorandum to your manager outlining what management should consider when trying to decide whether to discontinue its Golf department.

Piscataway valves decided to pursue development of a new product line for natural gas pipelines. The development effort has been successful and Piscataway is preparing to begin manufacturing and marketing the new product line next year. Piscataway has learned that marketing to natural gas pipeline companies requires commercial skills and experience they do not have. Management has, as a consequence, decided to have a partner and are in serious discussions with two companies having the requisite marketing expertise: Fargo Pipeline Supplies (FPS) and Quantum International (QI) Note: For this question, all cash flows are incremental cash flows. Part A: FPS Proposal FPS would provide only marketing, sales, and distribution for natural gas pipeline valves. Piscataway would have to invest in faciliites to manufacture the valves, spending $7,465 in Year 0 Piscataway would have to invest in facilites to manufacture the valves, manufacture the valves themselves, and incur administrative…

Was Anna effective in controlling her expenses? the attached images are the problem and the answer.

Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan.  Required: Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for the bank.     Costs Product Cost / Period Cost 1. Depreciation on salespersons’ cars.   2. Rent on equipment used in the factory.   3. Lubricants used for machine maintenance.   4. Salaries of personnel who work in the finished goods warehouse.   5. Soap and paper towels used by factory workers at the end of a shift.   6. Factory supervisors’ salaries.   7. Heat, water, and power consumed in the factory.   8. Materials used for boxing products for shipment overseas. (Units are…

Golden Joy Investment is engaged in mining in a deprived farming community in the Western North Region of Ghana. The company invested heavily in their concession and eventually has started recouping their investment. The community, led by their Chiefs and Elders, have written a petition to the company for support for two key infrastructural needs. Imagine you have been employed as financial consultant in an established firm of your choice: How will the mining company be able to determine, and maximize or satisfice stakeholders' expectation? What will be the objective of each stakeholder identified?   Veroni Ventures a key distributor of Voltic Water and other assorted products is considering investing Ghc335,600 in a project at Kasoa with a five-year life. The project will result in an increase in the company's turnover of Ghc350,000 at additional fixed cost of Ghc110,000 and a variable costs ofGHS150,000. At the end of the project in five years’ time, the assets will be sold for…

Please do not give image format

(Warranty, Customer Loyalty Program) Hale Hardware takes pride as the “shop around the corner” that can compete with the big-box home improvement stores by providing good service from knowledgeable sales associates (many of whom are retired local handymen). Hale has developed the following two revenue arrangements to enhance its relationships with customers and increase its bottom line.1. Hale sells a specialty portable winch that is popular with many of the local customers for use at their lake homes (putting docks in and out, launching boats, etc.). The Hale winch is a standard manufacture winch that Hale modifies so the winch can be used for a variety of tasks. Hale sold 70 of these winches during 2017 at a total price of $21,000, with a warranty guarantee that the product was free of any defects. The cost of winches sold is $16,000. The assurance warranties extend for a 3-year period with an estimated cost of $2,100. In addition, Hale sold extended warranties related to 20 Hale…