Question 1:

In spring 2014, Parmac Engineering Company signed a $160 million contract with the city of Parkersburg, to construct a new city hall. Parmac expects to construct the building within two years and incur expenses of $120 million. The city of Parkersburg paid $40 million when the contract was signed, $80 million within the next six months, and the final $40 million exactly one year from the signing of the contract. Parmac incurred $48 million in costs during 2014 and rest in 2015 to complete the contract on time. Using the percentage-of-completion method how much revenue should Parmac recognize in 2014?

a. $ 40 million

b. $ 120 million

c. $ 64 million

d. $ 80 million

Question 2:

When should each of the following companies recognize revenue for the following operations?

a. Sam's Club collects annual membership fees from customers.

b. Wall Street Journal receives advertising revenues in advance from Banco do Brasil, for an ad campaign that will run a full-page spread once a week for six months.

c. J. Jill is an internet clothing retailer. It receives credit card payments when customers place their orders and ships products from warehouses within 5-7 business days.

Question 3:

Google reported the following in its 2013, Form 10K (in millions). Use the information to determine in which year, Google reported a more significant R&D expenditure.

Question 4:

Nickolas Imports recorded a restructuring charge of $21.6 million during fiscal 2014 related entirely to the closing of its California based operations in San Diego and in Tijuana, Mexico. The company's financial statement footnotes indicated that expected employee separation payments amounted to $16.8 million and that fixed asset write-downs accounting for the remainder. Nickolas had never before incurred restructuring charges. At the end of the year, the company's balance sheet included a restructuring accrual of $3,600,000. Calculate the cash flow effect of Nickolas's restructuring during fiscal 2014.

Question 5:

December 31, 2012, includes the following information (in thousands):

What income tax expense did Life Technologies Company report in its 2012 income statement?

Question 6:

The Bean Import Export Corp. has a profitable Portuguese subsidiary that maintains its financial records in Euros. During the current year, the U.S. dollar strengthened vis-à-vis the Euro. What affect did this have on The Bean's consolidated income statement for the current year?

Question 7:

Oil Services Corp. reports the following EPS data in its 2014 annual report (in millions except per share data).

Compute basic earnings per share.

Question 8:

The 2013 annual report of Oracle Corporation, included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $323 million, accounts written off during the year $145 million, balance in allowance at the end of the year $296 million. What did Oracle report as bad debt expense for the year?

Question 9:

Fey Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in millions):

a. Determine the appropriate allowance for uncollectible accounts.

b. How will Fey Corporation report its accounts receivable on the balance sheet?

Question 10:

Dick's Sporting Goods reported Accounts receivable, net of $60,779 thousand in 2013 and an allowance for doubtful accounts of $3,109 thousand. Pretax income in 2013 was $546,107 thousand. If Dick's Sporting Goods' managers had purposely underestimated the allowance for doubtful accounts by $750 thousand, how would the 2013 income statement be affected? What about future financial statements?