In its first year of operations, Crane Company recognized $31,700 in service revenue, $7,700 of which was on account and stil outstanding at year-end. The remaining $24,000 was received in cash from customers. The company incurred operating expenses of $16,600, of these expenses, $12,690 were paid in cash; $3,910 was stil owed on account at year-end. In addtion, Crane prepaid $3,260 for insurance coverage thet would not be used until the second year of cperations (a) Calcuate the first year's net earnings under the cash basis of accounting, and caleulate the irst years net earnings under the accrual basis of accouriting (b) which basis of accounting (cash or accrual) provides more useful information for decision-makers?

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u. s. parent on bank deposits held in london d. interest received by a u. s. parent on a loan to a subsidiary in mexico e. principal repayment received by u. s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u. s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation

Dakota products has a production budget as follows: may, 16,000 units; june, 19,000 units; and july, 24,000 units. each unit requires 3 pounds of raw material and 2 direct labor hours. dakota desires to keep an inventory of 10% of the next month’s requirements on hand. on may, 1 there were 4,800 pounds of raw material in inventory. direct labor hours required in may would be:

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