Ask Question, Ask an Expert

+1-415-315-9853

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

This assignment will assess the following learning

This assignment will assess the following learning outcomes: - Demonstrate the impact on the financial statements and the implication for different users of accounts of alternative ways of treating controversial accounti ...

Prospective analysis forecastingquestion 1glaxosmithkline

Prospective Analysis: Forecasting Question 1. GlaxoSmithKline is one of the largest pharmaceutical firms in the world, and over an extended period of time in the recent past, it consistently earned higher ROEs than the p ...

Selected t-accounts of moore company are given below for

Selected T-accounts of Moore Company are given below for the just completed year: Raw Materials Manufacturing Overhead ________________________________________ Bal. 1/1 29,800 ________________________________________ Cre ...

Accounting assignmentbullemployee theft is a major problem

Accounting Assignment • Employee theft is a major problem in the U.S. retail industry. Information obtained from SecurityInfoWatch reported that twenty three (23) major retailers alone apprehended over 1.1 million shopli ...

Focus of the final paperyouve just been hired onto abc

Focus of the Final Paper You've just been hired onto ABC Company as the corporate controller. ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has an ...

Question 1 tonys textile company sells shirts for men and

Question 1: Tony's Textile Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows: Men's Boy's Selling Price $28.80 Selling Price $24.00 Variable Cost $20.40 Va ...

Course project portfolio of international accounting

Course Project: Portfolio of International Accounting Findings Throughout your course work, you explored topics such as cost and revaluation models of accounting, revenue recognition, assets and liabilities, translation ...

Discussion forumthis week we shall look at monopolistic

DISCUSSION Forum This week we shall look at Monopolistic Competition. This is where you, as a consumer, spend most of your time. In Monopolistic Competition, there are many companies selling similar but not identical pro ...

Assignmentapplication implementation of the balanced

Assignment Application: Implementation of the Balanced Scorecard APA Format Implementation of the Balanced Scorecard The term "balanced scorecard" became part of the professional accounting vernacular in the early 1990s. ...

Finlon upholstery inc uses a job-order costing system to

Finlon Upholstery Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 2001, consisted of one job (no. 2077), which was carried on the year-end balance she ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro