Waltham Oil

Question 1: Using budget data, how many motors would have to be sold for Waltham Motors Division to breakeven?

13. Use the following data to determine the total dollar amount of assets to be classified as property, plant, and equipment. Eddy Auto Supplies Balance Sheet December 31, 2014 Cash $84,000 Accounts payable $110,000 Accounts receivable $80,000 Salaries and wages payable $20,000 Inventory $140,000 Mortgage payable $180,000 Prepaid insurance $60,000 Total liabilities $310,000 Stock investments $170,000 Land $190,000 Buildings $226,000 Common stock $240,000 Less: Accumulated Retained earnings $500,000 depreciation ($40,000) $186,000 Total

Current liabilities are defined as: “Debts due to be paid with cash or with goods and services within one year, or within the entity’s operating cycle if the cycle is longer than a year.” (Hongren, Harrison & Oliver, 2012) These liabilities fit into three categories: Current liabilities of known amount; current liabilities that must be estimated; and contingent liabilities. According to the matching principle of accounting, expenses and revenues need to be reported during the same period that they are earned. This can be difficult if the exact amounts are not known. This is the purpose behind estimated and contingent liabilities. In order to provide accurate financial reports companies must record revenues and

2. For the most recent year, what is the amount of inventory in the balance sheet? What does this amount represent?

In response to you requested investigation regarding the property, equipment and intangible asset accounts, we have completed adjustments to the necessary accounts. During the year new office equipment was purchased at a cost of $2,697.50. We will calculate the difference between the accumulated Depreciation of office equipment balance and the office equipment account. We will then include the new office equipment to the balance, and then multiply the new balance by 20 percent using the declining-balance basis:

1. The company will recognize $17 million as the liability for the year ending December 31, 2007.

1996 Current Assets: Cash & Equivalents Marketable Securities AFS Accounts Receivable Inventory Other Current Assets Total Current Assets Property & Equipment, net Goodwill, net Other Total Assets Current Liabilities: Short-Term Borrowings Accounts Payable Accrued Expenses Income Taxes Payable Current Maturities of LT Debt Total Current

Please break down the current liabilities that are listed on the May 2015 balance sheet. I would like to know more about the acquired property taxes, distribution payable, notes payable, etc.

Balance Sheet – Our cash position at March 31, 2016 was at 95.9 Days of Cash on Hand, although there were 44.3 offsetting days in third-party reserves. Days in Accounts Receivable were at 60.6 days due to several staff vacancies. Our current Debt Service Coverage Ratio was at 4.20-to-1, well in excess of the minimum covenant requirement

The state of New Jersey and eventually local government agencies had a stake in this contamination. Newark Factory Sites which is a New Jersey Corporation purchased the property where the Refinery Stands today. The town of Kearny eventually bought the property from Newark Factory Sites and a permit for Diamond Head Oil Refinery was issued in 1948 to create a tank. In later years it was incorporated under the State of New Jersey and requested permits for building a one story masonry building to use for a boiler house. In later years the Oil Refinery operated under the same management as Bay City Oil. In 1952 Shur Flo Oil Co. is known to have worked with the Diamond Oil Refinery up until 1961.

largest percentage changes on Lockheed Martin’s balance sheet is the 16% vertical increase in ‘Other Liabilities’ (Other Non-Current Liabilities). This portion of the balance sheet contains payable liabilities in the future such as environmental cleanups and proceedings ($1.0B recorded in accordance with the Comprehensive Environmental Response, Compensation and Liability Act), expected pension payments, and deferred compensation plans. As obligations listed in this account are normally contractual or mandatory, it will be hard for the company to reduce the amount. What the company can instead do is to transfer some amount under prepaid expenses, thereby erasing some liabilities while fulfilling some pension and compensation obligations.

31, 2004) was computed, then the total Accounts Receivable balance would be $4,578,008.14. This indicates

During the 1960s, Imperial Oil, an integrated oil company, discovered a vast quantity of bitumen deposits located in Eastern Alberta. At that time, there was no viable method of producing bitumen while simultaneously attempting to make profits. This matter led one of Imperial Oil’s researchers, Dr. Roger Butler, into developing a concept that will deal with this case. Based on his findings, he concluded that if steam were to be placed into areas where bitumen deposits were located, it could reduce the overall viscosity levels of the bitumen, allowing it to flow easily to a well where it could be extracted from the reservoir. Confident with his findings, he developed a patent for his idea in 1969 [4]. Dr. Butler spent several more years compiling information that assisted in furtherly developing his concept.

The company maintains a minimum cash balance of $50,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.

In Balance Sheet under Non-current Liabilities: Bonds Payable Less: Bond Discount $100,000 ($20,000 - $784)