Moore, Inc Finance Assingment Help With Solution
1. Presented below is a partially completed income statement of Deep Sea, Inc. for 2015.
using the partially completed income statement for Deep Sea, Inc., determine each of the following for 2015.
A) Net Sales
B) Beginning Inventory
C) Ending Inventory
D) Selling, General and Administrative Expenses
McDonald’s Corporation is the largest food service organization in the world. The proper handling of cash and food is important to the profitability of McDonald’s. Based on your personal knowledge of McDonald’s and the internal control concepts and procedures described in the textbook, answer the following questions.
Describe procedures that you believe McDonald’s may use to control cash receipts.
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3. Herbert and Evita are planning to open a quick copy center near the local college. They will make both cash and credit sales. They will hire college students to make copies and to operate the cash register. Either Herbert or Evita will act as manager during most hours that the business will be open. One student will be designated as assistant manager when they cannot be present. (10 points)
Describe procedures that Herbert and Evita might use to provide adequate internal control over cash and credit sales and bank deposits.
4. A) When bad debts are estimated, why is the balance in Allowance for Doubtful Accounts considered when the percentage of accounts receivable approach is used but not when the percentage of net credit sales approach is used? (5 points)
5. B) When estimating bad debts on the basis of a percentage of accounts receivable, what is the advantage of using an aging schedule?
6. Moore, Inc. purchased slot machines at the beginning of 2015 for $20,000. The machines have an estimated residual value of $2,000 and an estimated life of 5 years or 20,000 hours of operation. Moore is looking at alternative depreciation methods for the equipment. Calculate the following:
A. Accumulated depreciation at December 31, 2016, using the straight-line depreciation method. (5 points)
7. B. Depreciation expense for 2015 using the units-of-production depreciation method. Assume that the machines are operated for 5,000 hours in 2015 and 2,000 hours in 2016. (5 point
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