Financial Accounting Course Project B
Stephanie Joy Dungo
DeVry University
Course Number: ACCT212
Instructor: Tanya Haddad
July 27, 2012

Financial Accounting Course Project B
For Financial Accounting Course Project B I worked on six charts, the adjusted entries, general ledger, adjusted trial balance, financial statements, closing entries, and post-closing trial balance. These are the final charts I did to finish the accounting process. After preparing the trail balance I worked on the adjusted entries for October 31st. I did calculations to figure out the insurance expired and remaining inventory of repair supplies. To figure out how much the cost for one month’s insurance was, I took the one-year prepaid insurance cost, which is $1,200 and divide that by 12 months to figure out how much the insurance cost was for a month, which comes out to $100. To find out the repair supplies expense, I took the purchased repair supplies $390 and subtract the remaining inventory $194, and I came out with the repair supplies expense of $196. When I completed the adjusted entries, I posted the information in the adjusted entries journal and journalize the adjusted entries on October 31st in the general ledger and compute the adjusted balances. I adjusted the general ledger by posting the adjusted entries and found the new balances. I journalized the new balances into the adjusted trial balance for October 31st. The calculations were made correctly and the accumulated total for the debit and credit balance each other out. I used the adjusted trial balance to prepare the financial statement. The income statement,I plugged in the bicycle repair revenue of $2,672 under the revenues and got a total revenue of $2,672. I jotted in the expenses which are: the store rent expense $1,040, utility expense $154, insurance expense $100, repair supplies expense $196, depreciation expense $70, and income taxes expense $40. Once I put in all the...

...Oracle is one of the leading companies in the software and hardware industry. Oracle develops, manufactures and distributes various kinds of software and hardware systems worldwide. The company was founded in 1977 and is headquartered in Redwood City, California. Oracle currently has about 108,000 full-time employees worldwide.
Microsoft Corporation develops, manufactures and distributes a range of software products and services for various computing devices worldwide. Microsoft also manufactures gaming systems such as Xbox 360 and related entertainments systems. Microsoft was founded in 1975 and is headquartered in Redmond, Washington. Microsoft currently employs about 90,000 full-time employees worldwide.
Liquidity: Tootsie Roll has the advantage for each of the liquidity ratios. Tootsie Roll has a large advantage in liquidity as evidenced by the $3.45 in current assets they have for every in $1 in current liabilities while Hershey has only 88 cents in current assets for every dollar in current liabilities. Tootsie Roll also has a better current cash debt coverage ratio. Tootsie Roll has a slight edge in inventory turnover and a considerable advantage in receivables turnover.
Liquidity: In terms of liquidity Microsoft has the advantage of Oracle. Microsoft has advantage as evidenced by the Current Ratio where it has $1.69 in current assets for every $1 in current liabilities while Oracle has $1.37 in current assets for every dollar in current...

...ACCT505
Part B
Capital Budgeting problem Clark Paints, Inc.
Data:
Cost of new equipment $200,000
Expected life of equipment in years 5
Disposal value in 5 years $40,000
Life production - number of cans 5,500,000
Annual production or purchase needs 1,100,000
Initial training costs 0
Number of workers needed 3
Annual hours to be worked per employee 2,000
Earnings per hour for employees $12.00
Annual health benefits per employee $2,500
Other annual benefits per employee-% of wages 18%
Cost of raw materials per can $0.25
Other variable production costs per can $0.05
Costs to purchase cans - per can $0.45
Required rate of return 12%
Tax rate 35%
Make Purchase
Cost to produce
Annual cost of direct material:
Need of 1,100,000 cans per year $275,000
Annual cost of direct labor for new employees:
Wages 72,000
Health benefits 7,500
Other benefits 12,960
Total wages and benefits 92,460
Other variable production costs 55,000
Total annual production costs $422,460
Annual cost to purchase cans $495,000
Part 1 Cash flows over the life of the project
Before Tax Tax After Tax...

...AC505
Part B
Capital Budgeting problem Clark Paints
Cost of new equipment $200,000
Expected life of equipment in years 5
Disposal value in 5 years $40,000
Life production - number of cans 5,500,000
Annual production or purchase needs 1,100,000
Initial training costs
Number of workers needed 3
Annual hours to be worked per employee 2,000
Earnings per hour for employees $12
Annual health benefits per employee $7,500
Other annual benefits per employee-% of wages 18%
Cost of raw materials per can $0.25
Other variable production costs per can $0.05
Costs to purchase cans - per can $0.45
Required rate of return 12%
Tax rate 35%
Make Purchase
Annual cost of direct material:
Need of 1,100,000 cans per year $275,000 0
Annual cost of direct labor for new employees:
Wages 72,000 0
Health benefits 7,500 0
Other benefits 12,960 0
Total wages and benefits 92,460
Other variable production costs 55,000
Total annual production costs $422,460 0
Annual cost to purchase cans 495,000
Before Tax After Tax
Item Amount Amount
Annual cash savings $72,540 $0
Tax savings due to depreciation 32,000 $0
Total annual cash flow $58,351...

...05= -1.645. According to CourseProject data, when I generate the data of income in Minitab, I found the standard deviation, which is 14.64. Then next step is calculating the z-value by Minitab, which is -3.02.
Consequently;
z-value < α 0.05 -3.020.4
The hypothesis test claims that the true population proportion of customers who live in urban area is greater than %40. H0 claims equal to %40 and the alternative hypothesis claims less than %40. The significance level is α 0.05= 1.645. According to CourseProject data, when I generate the data of income in Minitab, I calculated the number of trails and event respectively. The number of trails is 66 and events is 171. Then next step is calculating the proportion by Minitab, which is -0.37.
Consequently;
-0.37 significance level.
The average (mean) number of years lived in the current home is less than 13 years,
One-Sample Z: Years
Test of mu = 13 vs < 13
The assumed standard deviation = 5.086
95% Upper
Variable N Mean StDev SE Mean Bound Z P
Years 50 12.260 5.086 0.719 13.443 -1.03 0.152
α 0.05= -1.645
H0 μ = 13
Ha μ < 13
The hypothesis test claims that the average number of years lived in the current home is less than 13 years. H0 claims equal to 13 years and the alternative hypothesis claims less than 13 years. The significance level is α...

... |
CourseProject Title: Balance Sheet and Single-Step Income Statement
Objective
To prepare a comprehensive balance sheet and Single-Step Income Statement presented in good form and derived from a list of various accounts. The amounts relative to each account will be given and the student will learn to determine whether an account is a balance sheet account or a temporary account that belongs to the income statement. The accounts will be comprised of all the various subgroupings in the balance sheet (Current Assets, Investment, Fixed Assets, Intangibles and Other Assets. As well as Current Liabilities, Long-term Liabilities and the Equity sections).Guidelines
• Obtain the list of accounts under the title of CourseProject in Doc Sharing
• Determine which accounts belong to the Balance Sheet and which accounts belong to the Income Statement
• Determine to which sub-group each account belongs
• Arrange the accounts in proper order and functionality
• Prepare a Comprehensive Balance Sheet in good form
• Prepare a Single-step Income Statement in good form
• Put the courseproject in the dropbox for the project in week 8...

...Task 2: Evaluating Competitor’s Stock
AirJet Best Parts, Inc. is concerned regarding recent changes in its stock prices for the company and would like to determine the stock prices for key competitors. Key competitors include Raytheon, Boeing, Lockheed Martin, and the Northrop Grumman Corporation.
1. Using the dividend growth model and assuming a dividend growth rate of 5%, what is the rate of return for one of three key competitors? Use Yahoo Finance to obtain the latest dividend amount and price for one selected company. (15 pts)
2. Using the rate of return above, what should be the current share price of AirJet Best Parts, Inc. if the company maintains a constant 1% growth rate in dividends and the most recent dividend per share paid on the stock was $1.50? Show your calculations. (10 pts)
3. Assume AirJet Best Parts has also a preferred stock issue. The most recent dividend per share paid on the stock was also $1.50, the same as the common stock. Which one would you think has a higher price, the preferred stock or the current stock? Explain your rationale. (5 pts)
4. What would happen with the price you computed above if AirJet Best Parts, Inc. announces that dividends at the end of the year will increase? What if the required rate of return increases? What changes in dividends will affect the stock price and how? (10 pts)
Task 3: Bond Evaluation
AirJet Best Parts, Inc. would like to issue 20-year bonds to obtain remaining funds for the new Mexico...

...Term Project
Objective | Term Project Description | Ideas to Help Prepare the CourseProject | Final Paper Rubric | Citation Help
Objective
The objective is to complete a written plan that will suggest a practical Strategic Direction for a company.
Term Project Description
This course requires the completion of a comprehensive Strategic Plan.
You have a choice to use either an existing company or a fictitious company. In either case, the Project is to complete a written plan that will suggest a practical Strategic Direction for the company.
The Plan will have 7 sections. The 6 sections will reflect each of the 6 TCOs plus a bibliography. Each section will be 2 - 3 pages in standard business proposal format.
The sections are:
1. Strategy (TCO F)
2. Core Competencies (TCO C)
3. Industry Dynamics (TCO A)
4. Technology Sourcing and Internal Innovation (TCO D)
5. Product Development Strategy (TCO E)
6. Strategy to protect innovations (TCO B)
7. A bibliography listing your references for the project
Ideas to Help Prepare the CourseProject
Section 1 - Strategy
TCO F - Given an organizational and industry context, identify and suggest a deployment strategy that will facilitate the success of a technologically driven organization.
This is the most important part of the...