**ACCT 301 Week 1 Homework (Problems & Solutions)**

**Problem 1**

Required: Identify the financial statement on which each of the following items appears by making an X in the appropriate column. The first one is done for you!

**Problem 2 **

Required: Show the effects on the financial statements using a horizontal statement model as outlined below. The first one is done for you!

**ACCT 301 Week 2 Homework (Problems & Solutions)**

**1.** In two to three paragraphs, describe the Sarbanes-Oxley Act and why it is important to the accounting profession. (15 points)

**2. **Name and briefly describe the five components of COSO’s internal control framework. (10 points)

**3.** Describe the relationship between the Sarbanes-Oxley Act and COSO. (10 points)

**4. **Tom Jackson is a CPA who really likes to go to Las Vegas, play poker, and bet on football games. Tom knows that the accounting profession disapproves of gambling, but because he spends a lot of time studying sports facts and how to win at poker, he feels that he is simply making educated decisions based on facts. He says that this is no different from using accounting information to buy stocks. Use the fraud triangle as a basis to comment on Tom’s gambling activities. (15 points)

**ACCT 301 Week 3 Homework (Problems & Solutions)**

**Problem 1**

Required: Express each income statement component as a percentage of sales, and comment on the trends in each line from 2012 to 2013.

**Problem 2**

Required: Compute (1) accounts receivable turnover for 2013, (2) the inventory turnover for 2013, and (3) the net margin for 2012.

**ACCT 301 Week 4 Homework (Problems & Solutions)**

**Problem 1**

Required: Use the following information to complete the below schedule of cost of goods manufactured.

**Problem 2**

Required: JZ is a musician who is considering whether to independently produce and sell a CD. JZ estimates fixed costs of $10,000 and variable costs of $4.00 per unit. The expected selling price is $12 per CD. What is JZ’s break-even point in units and dollars?

**ACCT 301 Week 5 Homework (Problems & Solutions)**

**Problem 1**

Required: Identify each of the following as either a direct or indirect cost.

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**Problem 2**
Required: GH Company is trying to decide whether to replace a current piece of machinery with a new machine. Using the below data, determine the relevant costs of the old machine and the new machine. Should GH Company purchase the new machine?

**ACCT 301 Week 6 Homework (Problems & Solutions)**

**Problem 1**

Required: In the space below, describe the advantages of budgeting.

**Problem 2**

Required: Compute the ROI for each division below to two decimal places. (30 points) Which division has the best performance? (10 points)

**ACCT 301 Week 7 Homework (Problems & Solutions)**

**Problem 1**

Required: In the space below, describe the net present value method of capital budgeting.

**Problem 2**

Required: Compute the average annual cash inflows.

Compute the payback period using the accumulation method.