NOTE: I NEED HELP WITH THESE 10 QUESTIONS,IT IS AN EMERGENCY PLEASE!

Use the following information to answer questions 1-4.

The Bayside Company uses the LIFO cost flow method to value inventory. In the current year, profit at Bayside is running unusually high. The corporate tax rate is also high this year but it is scheduled to decline significantly next year. In light of this information, the president of Bayside instructs the purchasing department to make a large purchase of inventory for delivery 3 days before the end of the year. The price of the inventory to be purchased has doubled during the year.

QUESTION 1
What would be the effect of this transaction on this year’s net income?
a. The net income could increase.
b. The net income could decrease.
c. There would be no effect on net income
d. There is not enough information to determine if there would be an effect.

QUESTION 2
What would be the effect of this transaction on this year's income tax expense?
a. The income tax expense could increase.
b. The income tax expense could decrease
c. There would be no effect on income tax expense.
d. There is not enough information to determine if there would be an effect.

QUESTION 3
If Bayside had been using the FIFO cost flow method to value inventory instead of the LIFO cost flow method, would the president have given the same directive?
a. Yes, the president would have given the same directive. The effect on net income and the income
tax expense would have been the same.
b. Yes, the president would have given the same directive. There would have been no effect on net income or the income tax expense.
c. No, the president would not have given the same directive. There would have been an opposite effect on net income and the income tax expense.
d. No, the president would not have given the same directive. There would have been no effect on net income or the income tax expense.

QUESTION 4
The president's actions are an example of "earnings management." Which of the following statements about earnings management is false?
a. Earnings management is illegal.
b. Earnings management can sometimes have a negative side effect (e.g., the company may not be able to pay for the additional inventory).
c. Earnings management can sometimes be considered to be unethical.
d. None of these statements is false.

Use the following information to answer questions 5-7.

Blue Bird Bus Company is suffering declining sales of its principal product, school buses. The bank has threatened to call due a note if the company’s net income declines next year. The president, Joe Blow, talks to his controller, Ed Meek, and suggests that if net income declines Ed will not receive his annual bonus and may even lose his job. Joe suggests that Ed lengthen the useful lives of the production equipment from 10 years to 15 years for depreciation purposes and to continue to use the straight line method. The next day, Ed Meek informs the president he has made the changes in the depreciation schedules for the upcoming year.

QUESTION 5
What would be the effect on Blue Bird's depreciation expense if the useful life of the production equipment was increased from 10 to 15 years?
a. The increased life would cause the depreciation expense to increase.
b. The increased life would cause the depreciation expense to decrease.
c. The increased life would have no effect on the depreciation expense.
d. There is not enough information to determine if there would be an effect.

QUESTION 6
What would be the effect on Blue Bird's net income if the useful life of the production equipment was increased from 10 to 15 years?
a. The increased life would cause the net income to increase.
b. The increased life would cause the net income to decrease.
c. The increased life would have no effect on the net income.
d. There is not enough information to determine if there would be an effect.

QUESTION 7
What do you think of the president's ethical behavior as it relates to this situation?
a. It may be unethical for the president to threaten the controller with losing his bonus and potentially his job.
b. It may be considered unethical for the president to manipulate the useful life of assets.
c. Both statements might be considered to be unethical.
d. Neither statement would ever be considered to be unethical.

Use the following information to answer questions 8-10.

The Boxcar Corporation has paid a total of $1 million in cash bonuses to its officers for 8 consecutive years. The board’s policy requires that, for this bonus to be paid, net cash provided by operating activities reported on the current year’s statement of cash flows must exceed $1 million. President and CEO, I.M. Troubled, is very concerned with producing annual operating cash flows to support the usual bonus. At the end of the current year, controller Willie Waffle presented the president with some disappointing news; the net cash flows provided by operating activities calculated by using the indirect method was only $970,000. The president, I.M. Troubled, asked Willie if there was any way to increase the operating cash flows by another $30,000. He said Willie’s job depended on it. Later in the day, Willie met with the president and suggested that they could reclassify a $60,000, 2-year note payable listed in the financing activities section as “Proceeds from a bank loan, $60,000” as an increase in accounts payable instead.

QUESTION 8
What would be the effect on operating cash flows on Boxcar's statement of cash flows if the proceeds from the bank loan were reclassified as an increase in accounts payable?
a. Net cash provided by operating cash flows would decrease.
b. Net cash provided by operating cash flows would increase.
c. Net cash provided by operating cash flows would not be affected.
d. There is not enough information to determine if there would be an effect.

QUESTION 9
What would be the effect on financing cash flows on Boxcar's statement of cash flows if the proceeds from the bank loan were reclassified as an increase in accounts payable?
a. Net cash provided by financing cash flows would decrease.
b. Net cash provided by financing cash flows would increase.
c. Net cash provided by financing cash flows would not be affected.
d. There is not enough information to determine if there would be an effect.

QUESTION 10
Assuming the controller does reclassify the proceeds of the bank loan as an increase in accounts payable, which of the following statements is true?
a. The controller's actions are ethical as long as he is doing what the CEO ordered him to do.
b. The CEO's actions are unethical because he is threatening the controller that he will lose his job if he doesn't make the change.
c. Both statements are true.
d. Neither statement is true.

Did you get the answers? I'm in the class too and struggling

Ugh. This class. Does anyone have the answers?

I understand that you need help with these 10 questions. I'll provide you with explanations on how to arrive at the answers.

QUESTION 1:
To determine the effect of the transaction on this year’s net income, we need to consider the LIFO cost flow method, which values inventory based on the cost of the most recently purchased items. Since the price of the inventory to be purchased has doubled during the year, the cost of goods sold will be higher, resulting in lower net income. Therefore, the correct answer is b. The net income could decrease.

QUESTION 2:
Similarly, considering the LIFO cost flow method, the increased cost of goods sold will result in higher expenses, which will lead to a higher income tax expense. Therefore, the correct answer is a. The income tax expense could increase.

QUESTION 3:
Under the FIFO cost flow method, inventory is valued based on the cost of the oldest items. In this case, if Bayside had been using the FIFO method instead of LIFO, the cost of goods sold would not be affected by the increased price of the inventory. Therefore, the president would not have given the same directive. The correct answer is d. No, the president would not have given the same directive. There would have been no effect on net income or the income tax expense.

QUESTION 4:
Earnings management refers to the manipulation of financial statements to achieve certain goals, such as increasing net income or meeting certain targets. While earnings management is not necessarily illegal, it can sometimes have negative consequences and be considered unethical. Therefore, the false statement is a. Earnings management is illegal.

QUESTION 5:
If the useful life of the production equipment is increased from 10 to 15 years, the depreciation expense will be spread out over a longer period, resulting in a decrease in annual depreciation expense. Therefore, the correct answer is b. The increased life would cause the depreciation expense to decrease.

QUESTION 6:
By decreasing the annual depreciation expense, the net income will increase since expenses are lower. Therefore, the correct answer is a. The increased life would cause the net income to increase.

QUESTION 7:
Threatening the controller with losing his bonus and potentially his job may be considered unethical, as it puts undue pressure on the controller to manipulate the useful life of assets. Additionally, manipulating the useful life of assets is also an unethical behavior as it distorts the financial statements. Therefore, both statements might be considered unethical. The correct answer is c.

QUESTION 8:
Reclassifying the proceeds from the bank loan as an increase in accounts payable would not affect operating cash flows. Operating cash flows are derived from revenues and expenses related to core operating activities. Therefore, the correct answer is c. Net cash provided by operating cash flows would not be affected.

QUESTION 9:
Reclassifying the proceeds from the bank loan as an increase in accounts payable would not affect financing cash flows. Financing cash flows are related to activities involving changes in debt, equity, or dividends. Therefore, the correct answer is c. Net cash provided by financing cash flows would not be affected.

QUESTION 10:
The controller's actions of reclassifying the proceeds of the bank loan as an increase in accounts payable are unethical. The CEO's actions of threatening the controller's job based on making the change also unethical. Therefore, both statements are true. The correct answer is c. Both statements are true.

I hope this explanation helps you in answering these questions. If you have any further questions, feel free to ask!