Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

From the information given below, prepare the required schedules and financial statements using an excel spreadsheet being careful to use formulas whenever possible. Do not type in numbers that could otherwise be find outd or transferred from another schedule column or line item.

You are thinking of investing in one of two corporations, both in the same industry, the Craig Corporation or the Lori Corporation. Selected data follows:

Sales data for the year ended 12/31/10:
Craig: Gross revenue $31,485,000; Returns $ 725,000
Lori: Gross revenue $37,245,000; Returns $1,230,000

Selling expenses:
Craig: Payroll $2,642,000; benefits $1,150,000, travel $275,200; supplies $310,150, commissions $420,300, marketing $720,000, postage $210,300, misc $39,500.
Lori: Payroll $3,110,000; benefits $1,310,000, travel $320,200; supplies $460,300, commissions $502,300, marketing $790,000, postage $242,100, misc $82,300.

Administrative expenses:
Craig: Distribution $1,028,000, warehouse $959,000, IT $625,200, finance $529,400, human resources $413,250; administrative $310,000, depreciation $122,000
Lori: Distribution $1,212,310, warehouse $1,020,220, IT $616,420, finance $515,270, human resources $385,450; administrative $350,600, depreciation $156,100.

Other Gains and Losses
Craig: Sale of machine with a book value of $32,000 for $45,000 cash.
Lori: Sold a marketable security with at a profit of $15,000.

Irregular Items:
Craig: Extraordinary loss due to warehouse fire of $240,000 before tax effect.
Lori: Loss on sale of discontinued division of $575,000 before tax effect.

Tax rates: 35% for both companies:

Outstanding shares of common stock:
Craig: 800,000 shares
Lori: 950,000 shares.

Selected Balance Sheet Information:

Craig: Cash $1,520,000; marketable securities (at cost $410,300, at fair value $495,400); Account receivable (gross $1,725,400 less allowance for doubtful accounts of $112,100); Finished goods inventory, opening balance $322,000, purchases $9,450,000, ending balance $242,000. Prepaid expenses $55,210. Plant assets at cost $21,400,000, accumulated depreciation $7,312,000. Accounts payable, $613,410, accrued expense payable $191,260, bonds payable $7,383,375, capital stock $1,450,000, retained earnings beginning balance $1,500,210, dividends paid, $1 per share.

Lori: Cash $1,960,000; marketable securities (at cost $352,430, at fair value $292,400); Account receivable (gross $2,935,400 less allowance for doubtful accounts of $172,300); Finished goods inventory, opening balance $420,000, purchases $11,842,400, ending balance $358,420. Prepaid expenses $22,110. Plant assets at cost $19,240,000, accumulated depreciation $8,245,000. Accounts payable, $693,450, accrued expense payable $201,220, bonds payable $3,579,217, Capital stock $2,210,000, retained earnings beginning balance $2,240,000, dividends paid $ per share.

Required:

problem
: Prepare a separate schedule comparing the selling and administrative expenses of the two companies. Separate subtotals are required for both selling and administrative expenses. You should have a column which compares the dollar difference by line item of the two companies.

a) Sort Craig Company Selling expenses from highest amounts to lowest using the sort function listed in the table function on the tool bar.

problem: Prepare a separate schedule of cost of goods sold for each of the companies.

problem: Prepare a comparative income statement in good form (chapter 4) for the two companies. Be sure the selling, administrative and cost of goods number comes from your first two schedules by way of formula. DO NOT SIMPLY TYPE IN THE NUMBERS. Percentage of sale data should be presented for cost of goods sold, gross margin, selling expense and administrative expense and net income.

problem: Prepare an EPS summary following your income statement.

problem: Prepare a classified balance sheet.

problem: Prepare a Statement of Retained Earnings.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9314

Have any Question? 


Related Questions in Accounting Basics

Question - harveys junk jewelry started business january 1

Question - Harvey's Junk Jewelry started business January 1, 2018, and uses the LIFO retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2018: Cost Retail Beg Inv ...

1 lsquoclassification of liabilities is based on the same

1. ‘Classification of liabilities is based on the same principles as the classification of assets.' Do you agree with this? Why or why not? 2. ‘Classification of liabilities as current or non-current is not that importan ...

Question - alpha technology produces two products a high

Question - Alpha Technology produces two products: a high end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with ...

Question 1 in april 2018 abdullah masud editor of the arab

Question 1: In April 2018, Abdullah Mas'ud, editor of The Arab Newspaper (AN), decides to reduce the price per newspaper from SR0.70 in April 2018 to SR0.50 starting 1 May 2018. Actual paid circulation in April is 7.5 mi ...

Question - suppose the interest rate is 83 apr with monthly

Question - Suppose the interest rate is 8.3% APR with monthly compounding. What is the present value of an annuity that pays $ 115 every three months for six years if rounded to the nearest cent?

Question - stockman corp purchased 10 1000 6 bonds of

Question - Stockman Corp. purchased 10, $ 1,000 6% bonds of Energy Corporation when the market rate of interest was 14%. Interest is paid semiannually on the bonds, and the bonds will mature in six years. Using the PV fu ...

Question - if milo ltd sold inventory to lime ltd for 20000

Question - If Milo Ltd sold inventory to lime ltd for $20000 at a mark up of 25%. A quarter of the inventory was sold by 30 June 2016. The remainder was still sold by 30 June 2017. What is the equity accounting journal t ...

Question - a fire destroys all of the merchandise of

Question - A fire destroys all of the merchandise of Bridgeport Company on February 10, 2017. Presented below is information compiled up to the date of the fire. Inventory, January 1, 2017$395,100 Sales revenue to Februa ...

Question - on december 31 2016 wildhorse co had 1375000

Question - On December 31, 2016, Wildhorse Co. had 1,375,000 shares of $7 par common stock issued and outstanding. At December 31, 2016, stockholders' equity had the amounts listed here. Common Stock$9,625,000Additional ...

Question - bioscience inc will pay a common stock dividend

Question - BioScience Inc. will pay a common stock dividend of $3.90 at the end of the year (D1). The required return on common stock (Ke) is 22 percent. The firm has a constant growth rate (g) of 10 percent. Compute the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As