Financial Accounting Post Exam Project #2

Wells Fargo shows a much higher profitability ratio than Samsung, with over 8X that of Samsung. This is to be expected as services are typically more profitable than hardware sales which operate on leaner margins. Wells Fargo also outperforms Samsung significantly on return on sales with over 25X better performance. This again is attributable to better margins on services than hardware. Wells Fargo has a much stronger return on equity than Samsung with a Dupont ratio over 5X higher than Samsung's. Samsung has a stronger financial leverage ratio than Wells Fargo with almost 20% lower ratio for Samsung. Samsung also has a much lower total asset turnover than Wells Fargo. This is attributable to the quick turnover of assets in the manufacturing industry compared to the slow turnover of assets in the financial services sector.

The Grant-Horace Company purchased a new machine on April 1, 2013, for $48,000. The machine is expected to have a life of five years and a residual value of $3,000. The company's fiscal year ends on December 31.

33. Manufacturing overhead consists of: A. B. C. D. all manufacturing costs. indirect materials but not indirect labor. all manufacturing costs, except direct materials and direct labor. indirect labor but not indirect materials.

Asset A: On June 2, 2014, Columbia purchased a stamping machine at a retail price of $12,000. Columbia paid 6% sales tax on this purchase. Columbia paid a contractor $2,800 for a specially wired platform for the machine, to ensure noninterrupted power to the machine. Columbia estimates the machine will have a 4-year useful life, with a salvage value of $2,000 at the end of 4 years. The machine was put into use on July 1, 2014.

Alberta Mining Company extracts and processes a variety of ores and minerals. One of its operations is coal -cleaning plant that produces toxic wastes. For many years, the wastes have been properly disposed of though Canadian Disposal, an experienced company. However, disposal of the toxic wastes is becoming an economic hardship because increasing government regulations caused the cost of such disposal to quadruple in the list 6 years.

» The machine is expected to have a useful life of 10 years after which it could be sold for $50,000. » Technological obsolescence is a factor in this type of machine as manufacturers are always making

3- Calculate the depreciation for old and new machine and subtract the old from the new.

3) Sheffield Company had the following information taken from its 2006 adjusted trial balance: Sales, $400,000; Sales

Mr. J owns the mineral rights in a 640-acre tract in Coleman County, Texas. He leases the tract to S&S Company reserving a 1/8 royalty. S&S then makes assignments. Calculate each owner’s share of the first year’s production of 51,200 barrels.

is by splitting the cost of the machine and the maintenance contract over the first 3,000

1) Repairs and maintenance costs increased after late 1990’s and three machines were expected to soon

Assess the economic benefits of acquiring the Vulcan Mold-Maker machine. What is the initial outlay? What are the benefits over time? What is an appropriate discount rate? Does the net present value (NPV) warrant the investment in the machine? Assume that with ordinary maintenance, the semi-automated equipment could be operated for two more years beyond its depreciable life.

Because more categories and more refining provide more accurate information, but it is really difficult and costly to track more categories. The best option is to simplify the categories, in result, reducing the cost of ABC system.

Retirement and refunding of debt. Imputation of interest on notes. Disclosures of long-term obligations. Troubled

A truck was purchased for $25,000. It has a six-year life and a $4,000 salvage value. Using straight-line