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##### accounting assignments

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**Question**

Question;The;short answer questions below required detailed answers. Read each question to;understand the requirements. Notice that the questions may require computations;and multiple-part answers, and they should include reference to where the;answer was located.;1.(TCO 10) Not all pricing methods apply to;the market place. In manufacturing it is common practice to determine;the cost of a product as it moves through it transformation to a finished;product. (1) Explain how a transfer price could be used to make other;financial decisions (10 points) and (2) provide an example of the;application of transfer price data (10 points). (Points: 20);2.(TCO 11) Terry LeMay is unclear as to the;difference between the income statement of a merchandising company and a;manufacturing company. (1) Describe and provide an example of an;income statement of a merchandising company and (2) compare to an example;of an income statement of a manufacturing company (10 points). (Points;20);3.(TCO 3) Internal Control Procedures are;required to safeguard company assets and to ensure ethical operation of the;business. (1) Explain how proper approvals can satisfy the purpose of;internal control (10 points) and (2) provide an example of how this control;could be implemented (10 points). (Points: 20);4.(TCO 7) To promote better management control;of business centers financial responsibilities are assigned to managers.;There are three basic types of responsibility centers. (1) Explain;how a investment center operates (10 points) and (2) provide an example of;its application in business. (10 points). (Points: 20).;5.(TCO 1) To evaluate the financial operation;and health of a business ratio analysis is used. (1) Provide the formula;for Current Ratio and explain how it is computed (10 points) and (2);provide an example of how this ratio can be used in decision making in;business (10 points). (Points: 20);Part 2;The;essay questions below required detailed answers. Read each question to;understand the requirements. Notice that the questions may require computations;and multiple-part answers, and they should include reference to where the;answer was located.;1.(TCO 8) Planning for capital;investments is an important function of management. You are;responsible for considering purchasing new equipment for $450,000. It;is expected that the equipment will produce net annual cash flows of;$55,000 over its 10-year useful life. Annual depreciation will be;$45,000. Compute the cash payback period. (1) Explain the pros;and cons of using this method to evaluate a capital expenditure (10 points);and (2) show all computations required to arrive at the correct;solution. (15 points). (Points: 25);Answer;2.(TCO 6) To adequately plan for the success;of the business a budget must be developed. (1) Indicate the benefits;of budgeting (10 points) and (2) state the essentials of effective;budgeting (15 points). Include textbook page references to identify;where the correct answer was located. (Points: 25);Answer;3.(TCO 4) Financial statement analysis is used;by investors, creditors and managers of business to evaluate the operation;and health of the business. This information is in part the basis for;decision making. (1) Identify ratios use to evaluate the ability to;pay current and long-term liabilities (10 points) and (2) provide an;example of how the results of this analysis could be used to make business;decisions. (15 points). (Points: 25);4.(TCO 2) There are three different forms of;business, sole-proprietor, partnership and corporation. (1) Explain;why a corporation's taxation may not be considered a positive (10 points);and (2) as a stockholder explain why a stockholder would want to own common;stock. (15 points). (Points: 25);5.(TCO 5) Allgood Inc. has fixed costs of;$480,000. It has a unit selling price of $6, unit variable cost of;$4.50, and a target net income of $1,500,000. Compute the required;sales in units to achieve its target net income. (1) Explain how the;analysis is to be performed (10 points) and (2) Show all computations;required to arrive at the correct answer. (20 points). (Points: 30);6.(TCO 9) Warsaw Products has a factory;machine with a book value of $90,000 and a remaining useful life of 4;years. A new machine is available at a cost of $250,000. This;machine will have a 4-year useful life with no salvage value. The new;machine will lower annual variable manufacturing costs from $600,000 to;$500,000. Prepare an analysis showing whether the old machine should;be replaced or retained. (1) Explain how the analysis is to be;performed (10 points) and (2) Show all computations required to arrive at;the correct answer. (20 points). (Points: 30)

Paper#43570 | Written in 18-Jul-2015

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