User Account

All Pages

Identify the major stakeholders

Assignment Help Accounting Basics
Reference no: EM131114434

1. LIFO Choices Wilkens Company uses the LIFO method for inventory costing. In an effort to lower net income, company president Lenny Wilkens tells the plant accountant to take the unusual step of recommending to the purchasing department a large purchase of inventory at year-end. The price of the item to be purchased has nearly doubled during the year, and the item represents a major portion of inventory value. Answer the following questions.

(a) Identify the major stakeholders. If the plant accountant recommends the purchase, what are the consequences?

(b) If Wilkens Company was using the FIFO method of inventory costing, would Lenny Wilkens give the same order? Why or why not? 

Reference no: EM131114434

Questions Cloud

Explain in what sense insurance policy on its receivable : Suppose your company has purchased a put option on the euro to manage exchange exposure associated with an account receivable denominated in that currency. In this case, your company can be said to have an "insurance" policy on its receivable. Explai..
How is the cost of the intangible determined : If intangibles are acquired for stock, how is the cost of the intangible determined?
What are the two main characteristics of intangible assets : What are the two main characteristics of intangible assets?
What are the advantages of a currency options contract : What are the advantages of a currency options contract as a hedging tool compared with the forward contract?
Identify the major stakeholders : If Wilkens Company was using the FIFO method of inventory costing, would Lenny Wilkens give the same order? Why or why not?
Cash balance.assume all sales are collected in the year : Cash balance.Assume all sales are collected in the year of sale and all purchases, operating expenses, and taxes are paid during the year incurred.
Discuss and compare the costs of hedging by forward contract : Discuss and compare the costs of hedging by forward contracts and options contracts.
Discuss and compare hedging transaction exposure : Discuss and compare hedging transaction exposure using the forward contract versus money market instruments. When do alternative hedging approaches produce the same result?
What is lifo liquidation : Dollar-Value LIFO Issues Arruza Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO approach.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Estate tax exemption problem

Gift tax returns were filed reporting these gifts. How much of her estate is subject to federal estate tax after considering the estate tax exemption?

  Given the following information determine the cost of goods

given the following information determine the cost of goods sold at december 31 using the weighted-average perpetual

  It is important to properly classify and report current and

it is important to properly classify and report current and long-term liabilities because they affect liquidity. refer

  On january 1 2012 equipment costing 1344000 is purchased it

the following information has been obtained for the gocker corporation.1. prior to 2012 taxable income and pretax

  Treasury stock is

The following data is available for Blaine Corporation at December 31, 2013:

  To acquire the net assets of three smaller companies

To acquire the net assets of three smaller companies, Lennon authorized the issuance of an additional 237,600 common shares. The acquisitions took place as shown below.

  Clr inc is a clothing manufacturer recently clr made and

clr inc. is a clothing manufacturer. recently clr made and produced about 2000 shirts. during the production process

  Goodyear has an equity cost of capital of 85 a debt cost of

suppose goodyear tire and rubber company is considering divesting one of its manufacturing plants. the plant is

  Par common stock outstanding

Vincent Corporation has 100,000 shares of $100 par common stock outstanding. On June 30, Vincent Corporation declared a 5% stock dividend to be issued July 30 to stockholders of record July 15. The market price of the stock was $132 a share on Jun..

  If the firm sells inventory that was purchased for 50000 at

assume that the current ratio for arch company is 3.5 its acid-test ratio is 2.0 and its working capital is 390000.

  Waveforms for the total collector voltages

For the differential amplifier of Fig. 9.14, let VCC = +5 V and IRC =4 V. Find the differential gain Ad . Sketch and clearly label the waveforms for the total collector voltages vC1 and vC2 and for (vC2 -vC1) for the case: vB1 = 1+0.005 sin(ωt) vB..

  Show the september badjusting entries that spc would make

Prepaid Insurance shows a balance of zero at September 30, but Insurance Expense shows a debit balance of $ 2,340, representing the cost of a three- year fire insurance policy that was purchased on September 1 of the current year. On August 31 of thi..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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