Category: Accounting

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Unit 8: Financial Statements
Unit 8: Financial Statements
Identify two positions (financial analyst and Human Resources) that interest you that would benefit from accounting skills.  Re
Describe two ways that you feel better prepared to manage either your personal finances or the finances of your current employer.

Forever Pure produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-cum-filter that only purifies water meant for drinking.
The unit that attaches to the faucet is sold for $72 and has variable costs of $20.
The pitcher-cum-filter sells for $88 and has variable costs of $16.
Forever Pure sells two faucet models for every three pitchers sold. Fixed costs equal $960,000.
What is the break-even point in unit sales and dollars for each type of filter at the current sales mix?
Forever Pure is considering buying new production equipment. The new equipment will increase fixed cost by $166,400 per year and will decrease the variable cost of the faucet and the pitcher units by $4 and $8, respectively. Assuming the same sales mix, how many of each type of filter does Forever Pure need to sell to break even? Assuming the same sales mix, at what total sales level would Forever Pure be indifferent between using the old equipment and buying the new production equipment? If total sales are expected to be 23,000 units, should Forever Pure buy the new production equipment? Assess lessons learned concerning cost-volume-profit analysis and decision making.

ASSIGNMENT_blue.png Please read the attached rubric and complete Assignment 2. The rubric lists the problems  that you need to solve and provides specific information about what you need to provide in your answers and the points …

The question/problem due this week is a case study worth 40 points:
Case 12-1 (page 391) – Research Project: How CPA Firms are Leveraging New Developments in IT.  Do an online search to find any relevant article or source explaining how CPA firms are using IT developments (e.g., the cloud, mobile, etc.). Write a brief essay (1 – 2 pages) summarizing the benefits of the new technology (cost reduction, revenue increases, customer attraction and retention, etc.) and how the firm might mitigate any new threats associated with that technology.
Submit your assignment in a Word file upload.

Marker’s Tattoo Studio wants to buy new laser therapy equipment. This new equipment would cost $300,000 to purchase and $20,000 to install. Marker’s estimates that this new equipment would yield incremental margins of $98,000 annually due to new client services. It would require incremental cash maintenance costs of $10,000 annually. Marker’s expects the life of this equipment to be 5 years. They estimate a terminal disposal value of $20,000.
Marker’s has a 25% income tax rate and depreciates assets on a straight-line basis (to terminal value) for tax purposes. The required rate of return on investments is 10%.
Determine the expected increase in annual net income from investing in the new equipment. Calculate the accrual accounting rate of return based on average investment. Summarize whether the new equipment is worth investing in from a net present value (NPV) standpoint. Suppose that the tax authorities are willing to let Marker’s depreciate the new equipment down to zero over its useful life. If Marker’s plans to liquidate the equipment in 5 years, should it take this option? Quantify the impact of this choice on the NPV of the new equipment.

You are retained by Columbia Corporation to audit its financial statements for the fiscal year ended June 30. Your consideration of internal control indicates a fairly satisfactory condition, although there are not enough employees to permit an extensive separation of duties. The company is one of the smaller units in its industry, but it has realized net income of about $500,000 in each of the last three years.
Near the end of your fieldwork, you overhear a telephone call received by the president of the company while you are discussing the audit with him. The telephone conversation indicates that on May 15 of the current year, the Columbia Corporation made an accommodation endorsement of a 60-day $430,000 note issued by a major customer, Brill Corporation, to its bank. The purpose of the telephone call from Brill was to inform your client that the note had been paid at the maturity date. You had not been aware of the existence of the note before overhearing the telephone call. 
From an ethical standpoint, do you think the auditors would be justified in acting on information acquired in this manner? 
Should the balance sheet as of June 30 disclose the contingent liability? Give reasons for your answer. 
Prepare a list of auditing procedures that might have brought the contingency to light. Explain fully the likelihood of detection of the accommodation endorsement by each procedure listed.

Summarize chapter 7 https://openstax.org/books/principles-financial-accounting/pages/7-why-it-matters

This assignment is an INDIVIDUAL assignment and due by the final day of the Module.  Submissions should be uploaded to the dropbox in the course. Research assignments should be in proper format of a Client Letter AND Work Paper Memo.  Citations needed should only be IRS PRIMARY SOURCES.  Submissions that reference non primary sources cannot earn a passing score.
Hector Latrell is a client of yours who has recently come into your office to discuss tax planning for the current year.  During informal conversation you learn that Hector has recently used his AAAdvantage miles to purchase a free round trip ticket to London to see a Paul McCartney concert.  Hector tells you that the points accumulated to acquire this free ticket came from his business travel.  After learning this, you learn that Hector was reimbursed for all travel and not taxed on the travel reimbursement.  
As a CPA engaged to assist Hector in tax planning, you are obligated to advise Hector on any tax issues that may result from this free ticket to London.
Required:
1. Utilize and official tax research database to determine if any income is taxable will have to be recognized by Hector as a result of the ticket transaction.
2. Communicate your findings in a client letter to Hector, as well as a memo for the work paper file.    

Hello I am looking for a tutor to complete my assignments for the summer of 2024. My class is accounting business.

************ONLY MILESTONE FOR WEEK 5 *************
All intructions will be uploaded as PDF file in the upload section. 
I will also upload book of the class for reference. 
I will also attach my Milestone from week 3