Business
Blago Wholesale Company began operations on January 1, 20X1, and uses the average cost method in costing its inventory. Management is contemplating a change to the FIFO method in 20X2 and is interested in determining how such a change will affect net income. Accordingly, the following information has been developed: 20X1 20X2 Final inventory: Average cost $150,000 $255,000 FIFO 160,000 270,000 Condensed income statements for Blago Wholesale appear below: 20X1 20X2 Sales $1,000,000 $1,200,000 Cost of goods sold 600,000 720,000 Gross profit 400,000 480,000 Selling, general, and administrative 250,000 275,000 Net income $150,000 $205,000 Required: Based on this information, what would 20X2 net income be after the change to the FIFO method? Ignore any income tax effects of this change in accounting method.
When she was in college, Kiersten Walburg wrote a case study on Grokster, an online peer-to-peer (P2P) file-sharing network, and knew that it was shut down because its services were illegal. Several years later, Montgomery Records, Inc., which owned the copyrights to a large number of music recordings, discovered that "tereastarr", a user name associated with Walburg's Internet protocol address, had made twenty-four songs available for distribution on another P2P network. Montgomery notified Walburg that she had been identified as engaging in the unauthorized trading of music. She replaced the hard drive on her computer with a new drive that did not contain the songs in dispute. Is Walburg liable for copyright infringement?1. Making material available on a P2P network or through the cloud is called Select (file-sharing/ obtaining copyright protection)2. Is file-sharing always prohibited? Select (Yes/ No)3. File sharing is prohibited Select (when it is used to download and store copyrighted music/when it is used to listen to music)4. Under the Digital Millennium Copyright Act, a person who file-shares Select (can/ cannot) use the fair use doctrine to justify the file-sharing.5. Montgomery notified Walburg that she had been identified as engaging in the unauthorized trading of music. She replaced the hard drive on her computer with a new drive that did not contain the songs in dispute. Walburg Select (can/ cannot) remedy her wrongful conduct by replacing her hard drive?6. Why or why not? The illegal file sharing Select (was/ was not) already done.7. Who is an innocent infringer? A person who Select (is/ is not) aware and had no reason to believe that his or her acts constituted copyright infringement.8. Walburg likely Select (was/ was not) an innocent infringer.9. Why? She had written a case study on Napster and knew file sharing was Select (right/ wrong)10. It is Select (likely/ not likely) that Walburg replaced her hard drive to conceal her acts.11. If that is true, Walburg's act of replacing her hard drive Select (was / was not) ethical.12. If Walburg did commit an illegal act in sharing copyrighted material without earning a profit, she Select (can/ can not) face criminal sanctions13. A court likely Select (would/ would not) find Walburg liable for copyright infringement.
Chelene had been a caregiver for Martas elderly mother, Janis, for nine years. Shortly before Janis passed away, Chelene convinced her to buy Chelenes house for Marta. Janis died before the papers were signed, however. Four months later, Marta used her inheritance to buy Chelenes house without having it inspected. The house was built in the 1950s, and Chelene said it was in "perfect condition." Nevertheless, one year after the purchase, the basement started leaking. Marta had the paneling removed from the basement walls and discovered that the walls were bowed inward and cracked. Marta then had a civil engineer inspect the basement walls, and he found that the cracks had been caulked and painted over before the paneling was installed. He concluded that the "wall failure" had existed "for at least thirty years" and that the basement walls were "structurally unsound." Using the information presented in the chapter, answer the following questions.1. Can Marta avoid the contract on the ground that both parties made a mistake about the condition of the house? Explain. 2. Can Marta sue Chelene for fraudulent misrepresentation? Why or why not? What element (or elements) might be lacking?. 3. Now assume that Chelene knew that the basement walls were cracked and bowed and that she hired someone to install paneling before offering to sell the house. Did she have a duty to disclose this defect to Marta? Could a court find that Chelene's silence in this situation constituted misrepresentation? Explain.
Cougar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash $ 23,000 Accounts payable $ 19,000 Investments (short-term) 2,100 Accrued liabilities payable 3,100 Accounts receivable 4,600 Notes payable (short-term) 5,200 Inventory 27,000 Notes payable (long-term) 41,000 Notes receivable (long-term) 2,700 Common stock 10,700 Equipment 57,000 Additional paid-in capital 96,300 Factory building 91,000 Retained earnings 36,600 Intangibles 4,500 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $8,600 cash. b. Lent $6,300 to a supplier who signed a two-year note. c. Purchased equipment that cost $24,000; paid $4,900 cash and signed a one-year note for the balance. d. Hired a new president at the end of the year. e. The contract was for $86,000 per year plus options to purchase company stock at a set price based on company performance. f. Issued an additional 2,300 shares of $0.50 par value common stock for $19,000 cash. g. Borrowed $19,000 cash from a local bank, payable in three months. h. Purchased a patent (an intangible asset) for $1,100 cash. i. Built an addition to the factory for $29,000; paid $8,700 in cash and signed a three-year note for the balance. j. Returned defective equipment to the manufacturer, receiving a cash refund of $2,400.Prepare a classified balance sheet at December 31of the current year.
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $42,000. The estimated useful life was five years and the residual value was $5,000. Assume that the estimated productive life of the machine is 20,000 units. Expected annual production was year 1, 4,500 units; year 2, 5,500 units; year 3, 4,500 units; year 4, 4,500 units; and year 5, 1,000 units. Required: Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Which method will result in the highest net income in year 2
The inventory on hand at the end of 2019 for Reddall Company is valued at a cost of $94,000. The following items were not included in this inventory: 1. Purchased goods in transit, under terms FOB shipping point, invoice price $4,200, freight costs $200. 2. Goods out on consignment to Marlman Company, sales price $5,600, shipping costs of $200. 3. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 which included $178 freight charges to deliver the goods. Goods are in transit. 4. Goods held on consignment by Reddall at a sales price of $2,700 which included sales commission of 20% of sales price. 5. Purchased goods in transit, shipped FOB destination, invoice price $2,100 which included freight charges of $190.Required:Determine the cost of the ending inventory that Reddall should report on its December 31, 2016, balance sheet, assuming that its selling price is 140% of the cost of the inventory.
Megan, a human resource manager, recently approved the hiring of five summer interns. She will use ________ to decide which departments would benefit from the interns employment. As production manager, part of Jennifers job is to determine what raw materials will be needed to meet production needs. Sales forecasts may help Jennifer with this ______ function of management. Wesleys company just began offering online ordering for their products. Wesley uses _______ to delegate tasks to each department that is affected. Choose the management function being performed in each of the examples. Example of managerial work Planning Organizing Leading Controlling A construction project manager from Iron Horse Construction uses a team of experts to design the development of a new property on the top of a very steep ridge. The team includes geotechnical consultants, erosion control specialists, and contractors. Jessica Lee, director of global employer brand and communications at Marriott International, realizes the mobile app created by a vendor does not integrate with the company's existing software. George Steinbrenner transferred his passion for winning to everyone in the New York Yankees organization. His famous quote is, "Winning is the most important thing in my life, after breathing. Breathing first, winning next." Taco Bell CEO, Brian Niccol, considers what the technical and logistical needs would be in order to offer delivery to customers.