AACC 206 Week Two Assignment Please Complete The Following E

Aacc 206 Week Two Assignmentplease Complete The Following Exercises Be

Analyze stockholders' equity, bond computations, manufacturing concepts, cost of goods manufactured, and income statements based on provided data; also assess manufacturing statements, cost behavior, and budgeting for a healthcare organization.

Paper For Above instruction

The assignment encompasses a comprehensive review of various financial and managerial accounting concepts relevant to healthcare and manufacturing industries. It involves analyzing stockholders' equity changes, bond amortization, manufacturing costs, cost of goods manufactured, income statement preparation, and cost behavior analysis. Additionally, it addresses budgeting techniques, strategic planning, and financial decision-making pertinent to healthcare organizations.

Part 1: Analysis of Stockholders' Equity

Star Corporation's stockholders' equity statements from 20X5 and 20X6 provide a basis for calculating recent stock activities. To determine the preferred shares issued during 20X6, we subtract previous year's preferred stock from the current year's preferred stock. The ending preferred stock was $580,000, with a par value of $100 and a 10% dividend rate, indicating a total preferred stock value. Since preferred stock is listed at $580,000 at year-end, and given the par value of $100, we can calculate the number of preferred shares issued in 20X6 by dividing the total preferred stock by the par value, adjusting for shares issued during the year.

Similarly, for common stock, the ending balance was $2,350,750,000 at a $10 par, facilitating the calculation of new common shares issued. The average issue price of the common stock sold in 20X6 is determined by analyzing the increase in paid-in capital and total common stock. The change in paid-in capital, when compared to the par value increase, reflects the premium received over par. The company's total paid-in capital's increase indicates additional investments or issuance of new shares in 20X6, and examining the total legal capital changes reveals whether the company's fundamental capital structure was altered during the year.

Part 2: Bond Computations Using Straight-Line Amortization

Southlake Corporation's bond issue details provide an excellent opportunity to perform amortization calculations under different issuance prices: at par (100%), at a discount (96%), and at a premium (105%). The straight-line method allocates equal amounts of the bond discount or premium over the bond's life, simplifying calculations. For each case, the initial cash inflow equals the bond face amount adjusted for issue price, while total cash outflows include interest payments and amortization. The total borrowing cost over the bond's life combines interest expenses and any premiums or discounts amortized. Throughout the first year, interest expense and amortization are computed, adjusting the bond carrying value according to the amortized amounts.

Specifically, case A involves bonds issued at par, so no premium or discount adjustments are necessary. Cases B and C, issued at discount and premium respectively, require calculating the total amortization amounts and adjusting bond carrying values accordingly, considering the straight-line allocation. The amortization impacts the interest expense, which influences the overall cost of borrowing and provides insights into the financial management of debt financings.

Part 3: Manufacturing Concepts and Cost Calculations

The costs incurred by Interstate Manufacturing for brass fasteners include materials, wages, and factory overhead. Direct materials consumed are calculated by summing all materials directly used in production, including brass, repair parts, and lubricants, excluding indirect expenses. Direct labor comprises wages for machine operators, production supervisors, and maintenance personnel directly involved in manufacturing processes. Prime costs combine direct materials and direct labor, while conversion costs encompass all manufacturing costs excluding direct materials, primarily labor and factory overhead. These figures are crucial for assessing cost control, profitability, and pricing strategies.

Part 4: Schedule of Cost of Goods Manufactured & Income Statement

From ledger data, the schedule of cost of goods manufactured (COGM) requires summing direct materials used, direct labor, and factory overhead, adjusting for work-in-process inventory changes. The COGM reflects the total cost of goods completed during the period. The income statement then uses this figure along with sales, expenses, and depreciation to calculate net income. Accurate calculation of factory overhead, including factory depreciation, factory taxes, and utilities, is essential in determining precise cost of goods sold and profitability analysis.

Part 5: Manufacturing Costs and Cost Behavior Analysis

Tampa Foundry's production costs for aluminum rolls involve variable costs, fixed costs, and overall production and sales volumes. The finished goods inventory cost is calculated by multiplying the unit cost of production (sum of variable costs and fixed costs allocated per unit) by the units in ending inventory. The income statement reflects total sales, minus costs, to determine profitability. Evaluating whether sales commissions are paid involves analyzing the presence of specific sales expenses; the stable or fluctuating unit cost with increasing production hints at their likely presence or absence. Additionally, if production increases next year, the average unit cost of direct materials may decrease due to economies of scale and spreading fixed costs over a larger output.

Conclusion

These exercises collectively demonstrate the importance of precise financial analysis, cost management, and strategic planning in healthcare and manufacturing settings. Accurate financial data interpretation, cost control techniques, effective budgeting, and understanding of financial instruments like bonds are crucial for maintaining organizational stability, profitability, and growth in dynamic industries.

References

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• Horngren, C. T., Datar, S. M., & Rajan, M. (2021). Cost Accounting: A Managerial Emphasis (16th ed.). Pearson.
• Drury, C. (2018). Management and Cost Accounting (10th ed.). Cengage Learning.
• Higgins, R. C. (2012). Analysis for Financial Management (10th ed.). McGraw-Hill/Irwin.
• Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory & Practice (15th ed.). Cengage Learning.
• Rittenberg, L. E., Johnstone, K., & Gramling, A. (2021). Auditing: A Risk-Based Approach (10th ed.). Cengage Learning.
• Finkler, S. A., Ward, D. M., & Calabrese, T. (2018). Financial Management for Health Systems (4th ed.). Jones & Bartlett Learning.
• Kaplan, R. S., & Atkinson, A. A. (2019). Advanced Management Accounting (3rd ed.). Pearson.
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• Emblem, K. M., & Wainwright, K. (2014). Healthcare Finance: An Introduction to Accounting and Financial Management (2nd ed.). Jossey-Bass.