Please help with accounting homework
urfanasy1849
week2lab_2.xlsxTask 1
| The Windshield People repair chips in car windshields in the company's home county. Rocky Chip, the owner, incurred the following operating costs for the month of February 2012: | |
| Salaries and wages | $9,000 |
| Windshield repair materials | 4,900 |
| Depreciation on truck | 250 |
| Depreciation on building and equipment | 800 |
| Supplies expense | 600 |
| Gasoline and utilities | 2,130 |
| The Windshield People earned $26,000 in revenues for the month of February by repairing 500 windshields. All costs shown are considered to be directly related to repair service. | |
| Requirements: | |
| 1. Prepare an income statement for the month of February. Compute the ratio of total operating expense to total revenue and operating income to total revenue. | |
| 2. Compute the per unit cost of repairing one windshield. | |
| 3. The manager of The Windshield People must keep unit operating cost below $50 per windshield in order to get his bonus. Did he meet the goal? | |
| 4. What kind of system could The Windshield People use to integrate all its data? |
Task 2
| Natalia Wallace is the new controller for Smart Software, Inc., which develops and sells education software. Shortly before the December 31 fiscal year-end, James Cauvet, the company president, asks Wallace how things look for the year-end numbers. He is not happy to learn that earnings growth may be below 13% for the first time in the company's five-year history. Cauvet explains that financial analysts have predicted a 13% earnings growth for the company and that he does not intend to disappoint them. He suggests that Wallace talk to the assistant controller, who can explain how the previous controller dealt with such situations. The assistant controller suggests the following strategies: a. Persuade suppliers to postpone billing $13,000 in invoices until January 1. b. Record as sales $115,000 in certain software awaiting sale that is held in a public warehouse. c. Delay the year-end closing a few days into January of the next year so that some of next year's sales are included as this year's sales. d. Reduce the estimated bad debt expense from 5% of sales revenue to 3%, given the company's continued strong performance. e. Postpone routine monthly maintenance expenditures from December to January. |
| Requirements: |
| 1. Which of these suggested strategies are inconsistent with IMA standards? |
| 2. What should Wallace do if Cauvet insists that she follow all of these suggestions? |
Task 3
| In 400-500 words, discuss the differences between managerial and financial accounting. |
