Corporate tax accounting exam

The investment Detective case solutions

Answer Q1:

We can rank the projects by simply inspecting the cash flows (mention bellow), yet it’s not a good measure to rank them.

We can’t rank the projects by only simple inspection of the cash flows because of the time value of money and cost of capital of companies. We use capital budgeting tools to measure financial performance of projects.

The Ranking by simply inspecting the cash flows:

...

INSTRUCTIONS

See enclosed for further details.

Part A:
Prepare the year-end balance sheet for 2017. Be sure to use proper headings.
Prepare budgets such that the pro-forma financial statements for the first quarter of 2018 may be prepared.
Sales budget, including budgeted sales for April.
Purchases budget, the budgeted cost of goods sold for each month and quarter, and the cost of the March 31 budgeted inventory.
Selling expense budget.
General and administrative expense budget.
Expected cash receipts from customers and the expected March 31 balance of accounts receivable.
Expected cash payments for purchases and the expected March 31 balance of accounts payable.
Cash budget.
Budgeted income statement.
Budgeted statement of retained earnings.
Budgeted balance sheet.

Part B:
Calculate using Excel formulas, the NPV of each of the 3 projects.
It is possible that ABC Company may not be able to complete all 3 projects. Therefore, advise ABC Company as to the order in which they should pursue the projects (i.e., which project should ABC Company attempt to do first, second, and last).
Pro...

It is an Advanced Financial Accounting: Theory and Practice midterm test with 10 questions for 45 minutes. It will take place on 28th July 2021 at 3:30 London Time Zone....

Attached are instructions and opening balances to begin the project. The project starts out with Sept. 30th opening balances. Use the instructions to fill out the final three 4th quarter monthly payrolls. In addition, you will prepare the payroll journal entries, prepare checks to pay employees and tax liabilities as well as prepare year-end payroll tax forms. A sample T-Account sheet is provided to help with the trial balances each month. Remember a trial balance is simply a listing of the T-Account final balances at a given point in time (ie. end of month)....