cool air inc sells products with a one year warranty covering parts and labor the fo 3368649

Cool Air, Inc. sells products with a one-year warranty covering parts and labor. The following table lists the company’s three major product lines, the percentage of the products sold in each product line that are returned while under warranty, and the average warranty-related cost incurred on each returned item. Required: (a) Compute the estimated product warranty expense that should be recorded by Cool Air at the end of April and prepare the appropriate adjusting entry. (b) During the first week in May, Cool Air paid warranty-related costs of $6,800. Prepare the entry to record these payments.

cool cruise lines inc reported the following income statement for the year ended dec 3368653

Cool Cruise Lines, Inc., reported the following income statement for the year ended December 31, 2014: Millions Operating revenues ……………………………………………………… $ 95,500 Operating expenses ……………………………………………………… 84,100 Operating income………………………………………………………… 11,400 Other revenue (expense), net …………………………………………. 1,000 Income from continuing operations………………………………… 12,400 Discontinued operations, net of tax………………………………… 1,100 Net income…………………………………………………………………. $ 13,500 Requirements 1. Were Cool Cruise Line’s discontinued operations more like an expense or revenue? How can you tell? 2. Should the discontinued operations of Cool Cruise Lines be included in or excluded from net income? State your reason. 3. Suppose you are working as a financial analyst and your job is to predict Cool Cruise Line’s net income for 2015 and beyond. Which item from the income statement will you use for your prediction? Identify its amount. Why will you use this item?

cool look limited cll is a high end clothing design and manufacturing company that h 3368655

Cool Look Limited (CLL) is a high-end clothing design and manufacturing company that has been in business in Canada since 1964. CLL started as an owner-managed enterprise created and run by Hector Gauthier. Its ownership has stayed within the family, and Martin Roy, Hector s grandson, is the newly appointed president, chief executive officer, and chairman of the board of CLL. You are a chartered accountant and the audit senior on the CLL audit for its fiscal year, which ended November 30, 2012. Today is December 9, 2012, and you are reviewing correspondence from CLL s bank. You come upon a letter dated November 1, 2012, from the bank s credit manager that causes you some concern (Exhibit I). You pull out your notes from your review of the board s minutes (Exhibit II) to clarify your thoughts. Required (a) What facts indicate that CL may not be a going concern? What facts indicate that CL may be a going concern? Make a conclusion on whether you believe it is appropriate to assume the company will remain a going concern. (b) What are the risks related to the shareholder loan? What are three recommended procedures the auditor should perform related to the shareholder loan? (c) What type of report should be issued if management refuses to disclose the shareholder loan as required by IFRS and ASPE? Why? (d) Discuss the decisions made by the board. Are they ethical? Do they comply with the requirements of CSA s Corporate Governance Guidelines?

cool sky reports the following costing data on its product for its first year of ope 3368656

Cool Sky reports the following costing data on its product for its first year of operations. Year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit………………………………..$60 Direct labor per unit……………………………………$22 Variable overhead per unit………………………………$8 Fixed overhead for the year………………………$528,000 Selling and administrative costs Variable selling and administrative cost per unit………$11 1. Assume the company uses absorption costing. a. Determine its product cost per unit. b. Prepare its income statement for the year under absorption costing. 2. Assume the company uses variable costing. a. Determine its product cost per unit. b. Prepare its income statement for the year under variable costing.

cool sound corporation manufactures a line of amplifiers that carry a three year war 3368657

Cool Sound Corporation manufactures a line of amplifiers that carry a three-year warranty against defects. Based on experience, the estimated warranty costs related to dollar sales are as follows: first year after sale-2% of sales; second year after sale-3% of sales; and third year after sale-4% of sales. Sales and actual warranty expenditures for the first three years of business were: Instructions (a) Calculate the amount that Cool Sound Corporation should report as warranty expense on its 2012 income statement and as a warranty liability on its December 31, 2012 balance sheet. Assume that all sales are made evenly throughout each year and that warranty expenditures are also evenly spaced according to the rates above. (b) Assume that Cool Sound s warranty expenditures in the first year after sale end up being 4% of sales, which is twice as much as was forecast. How would management account for this change?