[jeff]

Welcome to the Q4 2016 CPA Exam Study Group for BEC.

If this is your first post in the study group – please post your target exam date (just the time frame to preserve your anonymity), and your past history with this exam (optional, of course).

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[mtaylo24]

Its crunch time people! For the sake of confidence, I'm dropping Ninja (I started too late) because I'm getting more out of Gleim. Test day is Sat! Best of luck to everyone sitting this week.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[mckan514w]

we can do this @mtaylo24 lets just push through to the bitter end!!!

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[mtaylo24]

Best of luck and best of luck tackling FAR (yuck!) too after this

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[mckan514w]

Are you heading to REG or FAR next??? I have already decided that even if I fail this I am going to go on to FAR and revisit this because my brain just honestly can not handle studying BEC again… I NEED A BREAK! ha … oh please please please let me pass this time.

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[mtaylo24]

I honestly don't know, I already have my Reg coupon (not NTS), but know I really need to hop on FAR, since I didn't even come close. Aud expires when the exam changes in Q2, so I need to pass everything ASAP. I might have to flip a coin smh!

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Forem004]

Good luck to everyone!

The ninja multiple choice questions refer to the Delphi method at being based on judgment. 😊

[mtaylo24]

Here is the Gleim Delphi questions and explanation

Which of the following forecasting methods relies mostly on judgment?

A. Time series models.
B. Econometric models.
C. Delphi.
Answer (C) is correct.
The Delphi technique was developed by the RAND Corporation in the late 1960s as a forecasting methodology. Later, the U.S. government enhanced it as a group decision-making tool with the results of Project HINDSIGHT, which established a factual basis for the workability of Delphi. That project produced a tool in which a group of experts could reach a consensus when the decisive factors were subjective, not knowledge-based.
D. Regression.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[mtaylo24]

I really hope I don't run into too many of these solve backwards w/ Algebra problems

A ceramics manufacturer sold cups last year for $7.50 each. Variable costs of manufacturing were $2.25 per unit. The company needed to sell 20,000 cups to break even. Net income was $5,040. This year, the company expects the following changes: sales price per cup to be $9.00, variable manufacturing costs to increase 33.3%, fixed costs to increase 10%, and the income tax rate to remain at 40%. Sales in the coming year are expected to exceed last year’s sales by 1,000 units. How many units does the company expect to sell this year?

A. 21,000
B. 21,600
C. 21,960
D. 22,600

Answer (D) is correct.
The number of units the company expects to sell this year can be found once the number of units sold last year is derived. Fixed costs can be found using breakeven analysis.

Breakeven point in units = Fixed costs (FC) ÷ Unit contribution margin (UCM)

20,000 units = FC ÷ ($7.50 sales price – $2.25 unit variable manufacturing cost)

20,000 units = FC ÷ $5.25 UCM

$105,000 = FC

Fixed costs can then be used to calculate the number of units sold last year.

[($5.25 UCM × Units sold last year) – $105,000 FC] × (1 – .4) = $5,040 net income

($5.25 UCM × Units sold last year) – $105,000 FC = $8,400

$5.25 UCM × Units sold last year = $113,400

Units sold last year = 21,600

The company expects to sell 1,000 more units this year than it did last year. Thus, it expects to sell 22,600 units.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[mckan514w]

I am still not really understanding this question and the explanation if any one could help explain better I would appreciate it!

I understand the concept that short-term debt is riskier because it has to be refinanced more often however when it pertains to current assets which I thought were highly liquid and thus could be readily sold making them “short term” I thought you would match maturities????

The working capital financing policy that subjects the firm to the greatest risk of being unable to meet the firm's maturing obligations is the policy that finances:

A.fluctuating current assets with long-term debt.

Incorrect B. permanent current assets with long-term debt.

C.permanent current assets with short-term debt.

D.fluctuating current assets with short-term debt.

Of the possible solutions offered, financing permanent current assets with short-term debt places a firm at the greatest risk because of its possible inability to meet its maturing obligations as economic conditions change, forcing the firm to respond to unfavorable refinancing situations to replace the short-term debt.

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Sticky Nicky]

just took bec…def had a harder 2nd testlet,,,3rd one wasnt as hard but def harder than the 1st so idk which one i actually received, overall much more confident that i passed…failed last time with a 73 and most of it was left field crap not really covered,,,this time everything was pretty much familiar,,,took way too long on the 1st WC tho only had 25 min left for the remaining 2 but was able to knock em out and put in a a bunch of keywords,,,again familiar topics on WC thank god! feel much more confident that i passed this time,,,if i didnt id be shocked and toss my review book into a burning furnace full of dog shit.

[mckan514w]

Thanks for checkin in @sticky nicky- I don't think I realized you were taking it today so good luck after the fact :-). Happy to hear that you think you got the pass this time!! Fingers crossed for you. At this point I'm just ready to get it over with…

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[mtaylo24]

@McKan I googled another answer explanation

Fluctuating current assets can often be financed with short-term debt because the periodic liquidation of the assets provides funds to pay off the debt. However, financing permanent current assets with short-term debt is a risky strategy because the assets may not be liquidated in time to pay off the debt at maturity.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[mckan514w]

BINGO! Thank you so much mtaylo!!!!! That makes sense to me 🙂

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[mtaylo24]

@Mckan no problem homie!

@StickyNicky – Fingers crossed. What section are you taking next?

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[Forem004]

That's awesome sticky Nicky! Mtaylo24, did you have a lot of the work backward type problems the first time you took it?

[Author]

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