Macgiver brass is a brass plating firm with sales of 8

Assignment Help Accounting Basics
Reference no: EM13576438

MacGiver Brass is a brass plating firm with sales of $8 million and profits before taxes of $625,000. MacGiver has a loan outstanding at its local bank for working capital purposes. As the loan officer reviewing MacGiver's loan application, you are charged with making a recommendation as to whether the $608,000 loan should be renewed for another year. Upon reviewing MacGiver's most recent annual report, you find the following footnote: Underabsorbed overhead of $462,000 was prorated to inventories (2/3) and cost of goods sold (1/3).

a. How should you evaluate MacGiver's annual report in light of this footnote? In particular, how does this footnote affect your recommendation regarding the loan?
b. In preparing for your meeting with MacGiver's president and chief financial officer, what questions do you want to ask regarding this footnote?

Reference no: EM13576438

Questions Cloud

Office supplies of 600 were on hand at the beginning of the : prepare adjusting entries for the following items.a. depreciation on machinery is 940 for the accounting period.b.
Rntal revenue 6000 freight-out 1800 rent expense 8800 and : the trial balance of revere finest foods on december 31 shows merchandise inventory 25000 sales 162400 sales returns
Discuss the reasons why corporations invest in securities : discuss the reasons why corporations invest in securities. discuss how the market would be affected if they stopped
Compute the inventory turnover ratio for the last two years : compute the inventory turnover ratio for the last two years for ford motor company. this may require you to look up the
Macgiver brass is a brass plating firm with sales of 8 : macgiver brass is a brass plating firm with sales of 8 million and profits before taxes of 625000. macgiver has a loan
Construct a 95 confidence interval for the proportion of : in a survey 200 people were asked to identify their major sources of news information 110 stated that their major
Describe what the statute of limitations means to a : describe what the statute of limitations means to a taxpayer and the irs. also there are three primary periods or time
On september 8 defective goods with a selling price of 200 : on september 5 de la hoya hotels buys merchandise on account from janet diaz company. the selling price of the goods
Luby office supply company reccently changed its system of : luby office supply company reccently changed its system of internal control over cash disbursements. the system

Reviews

Write a Review

Accounting Basics Questions & Answers

  The following information is available to reconcile clark

the following information is available to reconcile clark companys book balance of cash with its bank statement cash

  Concepts of consolidated financial statements

Kordel Inc. holds 75% of the outstanding common stock of Raxston Corp. Raxston currently owes Kordel $500,000 for inventory acquired over the past few months. In preparing consolidated financial statements, what amount of this debt should be elimi..

  The dunphys made timely estimated federal income tax

requiredbull use the following information to complete phillip and claire dunphys 2012 federal income tax return. if

  Machinery account for five years writtng off depreciation

Given the machinery Account for five years writtng off depreciation at 10% on the written down value.

  Ebit roa-roa and roe

Their net profit margin for the year was 20 percent, while the operating profit margin was 30 percent. What are Cisco's net income, EBIT ROA, ROA, and ROE?

  Uniform partnership act of 1997

What is the Uniform Partnership Act of 1997 and what is the relevance to partnership accounting and what types of items are typically included in the partnership agreement? Explain.

  E order processing overhead should be allocated to jackets

The company places raw materials orders 10 times per month, 2 times for raw materials for sweaters and the remainder for raw materials for jackets. How much of the order processing overhead should be allocated to jackets?

  Purpose of engagement planning

What is the purpose of engagement planning? What critical information should the auditor consider during engagement planning? How will this information affect the scope of the audit?

  Amount of gross profit realized

Compute the amount of gross profit realized each year, assuming Barkly uses the cost-recovery method. Compute the amount of gross profit realized each year, assuming Barkly uses the installmentsales method.

  Discusses the accounting implications of the automation

Discusses the accounting implications of the automation process

  Journal entry of short-term investment

The following transactions were made by Waite Company. Assume all investments are short-term and are readily marketable. Journalize the transactions.

  What information should management disclose in the foot

drug benefits and post retirement liabilities delphi companyreduced its other post reitrement benefits by approx 500

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd