The ledger of AISExperts Inc. showed the following balances after adjustment, but before closing, on December 31, 2007, the end of the current year

The ledger of AISExperts Inc. showed the following balances after adjustment, but before closing, on December 31, 2007, the end of the current year:

Accounts payable 79000

Accounts receivable 104000

Accumulated depreciation – equipment 28000

Depreciation expense 800

Interest revenue 1925

Cash 80500

Common stock (10,000 shares outstanding) 100000

Cost of merchandise sold 635550

Dividend 19100

Equipment 139450

General expenses 114250

Interest expense 5600

Merchandise inventory 154250

Prepaid insurance 11225

Retained earnings ?

Salaries Payable 14550

Sales 960250Sales 960250

The president of AISExperts Inc., has asked you to develop a flexible financial statement package (call the file yourlastnameyourfirstnameFinState07), using Excel that includes:

• a data entry sheet

• a trial balance,

• a single-step income statement,

• a multi-step income statement,

• a statement of retained earnings,

• a classified balance sheet, and

• a post-close trial balance (a trial balance with only accounts not “closed”)

Each statement must be on one sheet in the file and this file should allow the financial statements to be prepared quickly by entering account balances in the appropriate cells on the first sheet of the file (book) – data entry sheet.

Include percentages in the Income Statement (vertical analysis) i.e. gross profit percentage, % of selling expenses to sales, etc. (common sizing and vertical analysis are basically the same analysis techniques – every number in the multi-step income statement are divided by sales).

Use the financial information above as input for your statements. Only formulas/cell references should appear on all sheets except your data entry sheet (except titles and dates) – no hard coded numbers in the financial statements.

Your file must contain documentation with comments (Excel commands: INSERT, COMMENT). The comments should be included where you think explanation is required i.e. earnings per share on the bottom of the income statement should probably be explained or retained earnings might require some additional comments.

File name: The-ledger-of-AISExperts-Inc..xls File type: application/vnd.ms-excel Price: $10 

PR 13-2B Bobblehead Corporation produces and sells basketball jerseys. On July 1, 2008,

PR 13-2B Bobblehead Corporation produces and sells basketball jerseys. On July 1, 2008,

Financial and managerial accounting By Carl S. Warren, James M. Reeve

Bobblehead Corporation produces and sells basketball jerseys. On July 1, 2008, Bobblehead Corp. issued $16,000,000 of seven-year, 13% bonds at an effective interest rate of 10%. Interest on the bonds is payable semiannually on Dec. 31 and June 30. The fiscal year of the company is the calender year.

Instructions:
1. Journalize the entry to record the amount of the cash proceeds from the sale of the bonds.
2. Journalize the entries to record the following:
a. The first semiannual interest payment on Dec.31,2008 andthe amortization of the bond premium, using the straight-line method. (Round to the nearest dollar)
b. The interest payment on June 30, 2009, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar)
3. Determine the total interest expense for 2008.
4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest? Explain.

File name: PR-13-2B-Bobblehead-Corporation.doc File type: application/msword Price: $8

A company is considering a high-tech project lasting five years. The project requires $800,000 of initial

A company is considering a high-tech project lasting five years. The project requires $800,000 of initial investment and generates net cash flows of $200,000, $300,000, $300,000, $200,000, and $300,000 in years 1, 2, 3, 4, and 5, respectively. Therefore, the cash flows are as follows:

                    Year           Cash Flow

                      0            -800,000
                      1             200,000

                      2             300,000

                      3             300,000

                      4             200,000

                      5             300,000

The appropriate discount rate (or the cost of capital) is 10%.

1. If the company uses the NPV method, should the project be accepted? Why (or why not)?

2. If the company uses the IRR method, should the project be accepted? Why (or why not)?

3. The company’s maximum acceptable payback period is 3 years. If the company uses the payback period method, should the project be accepted? Why (or why not)?

4. Would you accept a project which requires $50,000 of initial investment and yields $10,000 every year infinitely? Why (or why not)? Assume that the discount rate (or the cost of capital) is 10%.

File name: A-company-is-considering-a-high-tech.doc File type: application/msword Price: $8