Xacco 280 Week 1

A situation in which a company using LIFO accounting sells its oldest inventory. LIFO liquidation happens when the company's sales outpace its purchases for inventory. By using the LIFO inventory method this will the older you have to go back, the higher the net income. Inventory is always reported on the balance sheet. As you liquidate older inventory with the LIFO method you decrease your cost of good sold which will increase profitability.

When using the LIFO method, if sales are higer than current purchases inventory not sold may be liquidated. This is called LIFO liquidation. The effect of the LIFO liquidation on the Harnischfeger’s income statement is an increase in net income by $2.4 million or $.20 in fiscal year 1984. There is no income tax effect. On the balance sheet there is a decrease of inventory, due to liquidation.

The amount of money that I spent on discretionary expenses was eye opening. I did not really realize the amount of money that was being spent on food and drinks every day that could be saved by bringing a lunch or just buying the drinks in bulk and bringing them from home. While I was looking on the spreadsheet before totaling the amounts I was not expecting the costs to add up so fast. By completing this assignment, it has caused me to realize the amount of money I could be saving in my bank account or saving for purchases that will make a difference in my life.

What can I say, week five; I have a lot of mental distress … just kidding, not the truth is that my mind is getting back together after dealing with so many samples and numbers ( as usual). Just like previous weeks a lot of material to cover, some of the topics like exponential functions were not that difficult to comprehend but they looked so hard to do in the book that unless you read the explanation multiple times and really pay attention to all the details, I do not think it will be easy to figure them out, wait what is that I am saying? … that is always the case with math and algebra, see what I mean my I am still having problems making sense, my brain is continues recuperating.

I did best at numerical insight (80%), and my results for the rest of the categories was at 60%. I am very surprised, because math is actually my weakest subject (as shown by standardized testing scores, and the fact that I haven’t taken a math course in 3 or 4 years). I actually forgot how to carry a one the other day, so I’m not sure how I managed this. I expected to be best at spatial abilities since I am a design student, and I often have to think about space in 3 dimensions in order to understand how to make models. I can think of a few reasons for my strange results:

You use a perpetual inventory system and value the inventory using FIFO. Prior to making adjusting year-end entries you valued the inventory at the lower-of-cost or-market. Justify why you valued the inventory at lower-of-cost or-market.

I chose three tech companies for my financial analysis; Amazon ”AMZN”, Apple ”AAPL”, and Microsoft Corporation “MSFT”. Company data are derived from the 2016 fiscal year. I utilize services from all three companies on a daily basis. I own many Apple products, my favorite being my iPhone. On my iPhone I have access to Amazon and Microsoft apps. As an Amazon Prime subscriber, I enjoy the fast shipping and wide variety of products offered by Amazon. Microsoft office allows me to create presentations with PowerPoint, write academic papers (like this one) with Word, and organize data using Access or Excel. In order to analyze the financial health of the three companies, i’m using the debt ratio, asset turnover ratio, price/earnings ratio, current ratio, and gross profit percentage.

Raising maximum distributor order, more than customer demand is one good choice made in the three games. According to the supply chain order, the maximum distributor order totals to 15units compared to a maximum demand of 9units. These figures prove that backordering costs will not occur during business operations. Good inventory management techniques require placing adequate orders to reduce backordering costs. The cost and time of backordering affects operations and hence the need to adequate inventory to match demand changes. An average customer order of 7units compared to average distributor order of 5units points to low backordering costs. A minimum customer order of 4units means that market demand is under control from

Is there anyway we could meet today for a run through of our PowerPoint? This would allow us the opportunity to make any necessary changes. During this run through we would also be able to time the presentation as a whole. I have class today at 4p.m., however I am free after 5:50p.m. Please contact me as soon as possible so I am able to plan accordingly.

According to your budget, will you earn enough to finance the lifestyle that you want?

a. The financial statements I would use are the Balance Sheets, Income Statements, Cash Flow Statements, and Shareholders Equity Statements from the last 2-5 years. In order to better assess the company it would be advantageous to understand the company’s business, industry and their competitors. In addition, to assist in the assessment of the company, it would be helpful to have financial ratios of the company’s competitors and the industry, too.

The U.S. banking system creates money by allocating the excess reserves from a deposit at creating a loan from the Home Bank. In other words, say I deposit a $100.00 in Bank #1, where Bank #1 is able to lend out some of my money to another customer. So, Bank #1by law needs to hold 10% of what I deposited which is known as required reserves. Therefore, the required reserves of my $100 is $10. So, Bank#1 is able to provide a $90 loan to another customer, which we will name Moe, from my $100. Then, Moe will turn around and spend that money which will eventually make its way to another bank, which we will call Bank #2. So, Bank #2 will be able to loan out $81 of Moe’s $90 yet, Bank #2 is still required to keep 10% which is required reserves, which is $9 of the $90.

Diagnostic Services Inc. (DSI) is a company that has been in business for only a year. Additionally, their company offers diagnostic services to physicians in the Tampa/St. Petersburg, Miami and Orlando area. Diagnostic Services carries the lasts technology, including magnetic resonance imaging (MRI) machines, computerized tomography (CT) scanners, and electron beam tomography (EBT) scanners. Outstandingly, the company plans to expand its market base with the state of the art technology that the electron tomography scanner provides, this scanner can detect potential health problems earlier than any other technology on the market. However, Diagnostics Services has been operating without a sales manager. They do have six sales representatives,

Let us start off by calculating the interest earned over the four years of the mortgage:

To account for inventory, the company uses, first in first out policy. Property plant and equipment are recorded at cost less the accumulated depreciation amount. Depreciation is charged on straight line method