Woodlawn Engineering Case Study

This then translates to a 50% chance of not having inventory available during job opportunities. Therefore, opportunity costs might occur. The indifference of the production managers' in these aspects of inventory control is alarming and should be acted upon.

As money is spent statements are updated to reflect the accounts affected by the spending. Managers use these financial statements, such as an income statement or balance sheet, to check the progress of plans and programs. Management uses the information provided by financial statements to monitor financial resources and activities. The income statement shows the results of the organization's operations over a specific period, such as revenues, expenses, and profit or loss. The balance sheet shows what the organization is worth (assets) at a particular point and the extent to which those assets were financed through debt (liabilities) or owner's investment (equity) (Bank of America, 2007).

A financial statements are documents prepared communicating with a business financial activities. Financial statements are a key component of accounting. Financial statements are presented in a structured manner with conventions accepted by accounting and regulatory personnel. There are four different financial statements which includes the balance statement, income statement, retained statement, and the statement of cash flow.

balance sheet and income statement (Yes.  Accounts receivable will be on the balance sheet and the advertising expenses on the income statement)

5) Herelt Inc., a calendar year taxpayer, purchased equipment for $383,600 and placed it in service on April 1, 2014. The equipment was seven-year recovery property, and Herelt used the half-year convention to compute MACRS depreciation. Compute Herelt’s MACRS depreciation for 2016 if it disposes of the equipment on February 9, 2016. (part c)

The opportunity for constructing Tech-wood homes gained the attention of Charles Forrest Palmer, an Atlanta property owner and manager recognized the opportunity that the Limited Dividend housing program offered a chance to use federal money to eliminate Tech-wood flats, a racially mixed, but predominantly white, low income neighborhood just north of the central business district. Tech-wood flats was in such poor condition that many wealthy north Atlantans that passed through the flats on their way to work would accelerate through the neighborhood because of its ugliness, dilapidated dwelling , ragged , and dirty children. Since the slums lines the route between Georgia Tech campus and the central business, many wealthy folk from the north

d. If the equipment is impaired at the end of the fourth year, compute the impairment loss.

1. Productivity of the crew would be below standard. I believe for the productivity to be below standard because they were sent to this crew because of their lack of work. Just because they have been assigned to another crew, does not mean that they will begin to work well right away. When compared to the Equity Theory, I believe there to be positive inequity for the three men assigned to the new group. For being assigned to the group due to lack of work, it is unfair to have a higher pay grade than those who have been in the company for a longer period of time and who are doing their job correctly. This may cause issues with subprofessionals being motivated to work to their full

Woodlawn and Washington Park lack commercial vitality likely due to the low and declining residential density and the lack of disposable income needed to support retail development. Businesses in Woodlawn and Washington Park largely cluster along the neighborhoods’ commercial corridor with prime access to the CTA’s Green line Stations and are characterized by low sales volume and not much diversity. With large concentrations of vacant land and a lack of neighborhood amenities both neighborhoods will have an uphill struggle to start growing the residential base if done in isolation from UChicago and other non-profit and public partners.

b. The inventory write down recorded, as an expense by the company is $4.4 million. It is measured at lower of cost and net realizable value. Cost is measured by weighted average using standard cost method or

years and currently has 15 employees. Firms who have worked with Clarkson speak very highly

Net book value at end of year 1 is $8,793. Less what you received on the sale $7,500. Gives you a disposal loss of $1,293 using the straight-line method of depreciation. You then add the disposal loss from the previous years depreciation $1,880, which results in a total income statement impact of $3,173.

Account groups : assets, liabilities, owners equity, revenue and expenses makes up all of the statement of financial position and statement of financial performance. They show us the budgets and also the profit/ loss.

The “financial statements are formal reports providing information on a company's financial position, cash inflows and outflows, and the results of operations” (Hermanson, p.22). There are four main components that make up a financial statement. The four parts are, balance sheet, income statements, cash flow and, statement of owner’s equity. The balance sheets role is to define the company’s assets liabilities and revenue of the business. The income statement shows the income within the company. Cash flow reviews the position of the company by cash payments and receipts. Lastly, the statement of owner’s equity shows the amount of earnings, stock and other capitals of people in the company. (Hermanson, p.34-35).

While there are more incentives to classifying a lease as operating such as tax incentives, higher return on asset, and better solvency ratios, the lease must be classified as a Capital Lease so as to stay in accordance with IFRS. However, a Capital Lease does provide a company with a higher operating cash flow, and reduces Net Income,