Financial and Managerial Accounting

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vi Contents

CHAPTER 3 Costing Systems: Process Costing 85

BUSINESS INSIGHT DEAN FOODS 85 Accounting for Costs 94

Concepts Underlying the Process Costing Assigning Costs 94
System 86 Process Costing for Two or More Production
Patterns of Product Flows and Cost Flow Departments 96
Methods 87 Preparing a Process Cost Report Using the
Cost Flows Through the Work in Process Inventory Average Costing Method 98
Accounts 88 Accounting for Units 98
Computing Equivalent Production 88 Accounting for Costs 99
Equivalent Production for Direct Materials 89 Assigning Costs 100
Equivalent Production for Conversion Costs 90 The Management Process and the Process
Summary of Equivalent Production 90 Costing System 103
Preparing a Process Cost Report Using the TriLevel Problem  104
FIFO Costing Method 91 Chapter Review 107
Accounting for Units 93 Chapter Assignments  109

CHAPTER 4 Value-Based Systems: Activity-Based Costing and Lean Accounting 123

BUSINESS INSIGHT LA-Z-BOY, INC. 123 Continuous Improvement of the Work
Concepts Underlying Value-Based Environment 133
Systems 124 Accounting for Product Costs in a JIT Operating
Value Chain Analysis 124 Environment 133
Supply Chains 124 Backflush Costing 134
Using Information from Value Chains and Supply Cost Flows in Traditional and Backflush
Chains 125 Costing 135
Process Value Analysis 125 Management Tools for Continuous
Value-Adding and Non-Value-Adding Activities Improvement 138
125 Total Quality Management 138
Activity-Based Management 127 Theory of Constraints 138
Activity-Based Costing 127 Comparison of ABM and Lean Operations 138
The Cost Hierarchy and the Bill of Activities 127 TriLevel Problem  141

The New Operating Environment and Lean Chapter Review  144

Operations 131 Chapter Assignments  145
Just-in-Time (JIT) 131

CHAPTER 5 Cost-Volume-Profit Analysis 163

BUSINESS INSIGHT FLICKR 163 The Scatter Diagram Method 169

Concepts Underlying Cost Behavior 164 The High-Low Method 170
Cost Behavior 164 Statistical Methods 171
Mixed Costs and the Contribution Margin The Engineering Method 171
Income Statement 169 Contribution Margin Income Statements 171

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Contents vii

Cost-Volume-Profit Analysis 173 Assumptions Underlying CVP Analysis 178

Breakeven Analysis 173 Applying CVP to Target Profits 178
Using an Equation to Determine the Breakeven TriLevel Problem  182
Point 174 Chapter Review 184
The Breakeven Point for Multiple Products 175 Chapter Assignments  186
Using CVP Analysis to Plan Future Sales,
Costs, and Profits 178

CHAPTER 6 The Budgeting Process 199

BUSINESS INSIGHT FRAMERICA CORPORATION 199 The Cost of Goods Manufactured Budget 210
Concepts Underlying the Budgeting Financial Budgets 212
Process 200 The Budgeted Income Statement 212
The Master Budget 200 The Capital Expenditures Budget 213
Preparation of a Master Budget 202 The Cash Budget 213
Budget Procedures 204 The Budgeted Balance Sheet 216
Operating Budgets 204 Budgeting and the Management Process 218
The Sales Budget 204 Advantages of Budgeting 218
The Production Budget 205 Budgeting and Goals 218
The Direct Materials Purchases Budget 206 Budgeting Basics 219
The Direct Labor Budget 208 TriLevel Problem  221
The Overhead Budget 208 Chapter Review 223
The Selling and Administrative Expenses Chapter Assignments  225
Budget 209

CHAPTER 7 Flexible Budgets and Performance Analysis 247

BUSINESS INSIGHT VAIL RESORTS 247 Residual Income 258

Concepts Underlying Performance Economic Value Added 259
Analysis 248 Performance Measurement 260
What to Measure, How to Measure 248 Organizational Goals and the Balanced
Types of Responsibility Centers 249 Scorecard 260
Organizational Structure and Performance Performance Evaluation and the Management
Reports 251 Process 263
Performance Evaluation of Cost Centers and Performance Incentives and Goals 264
Profit Centers 253 Linking Goals, Performance Objectives, Measures,
Flexible Budgets and Performance Analysis 253 and Performance Targets 264
Evaluating Cost Center Performance Using Performance-Based Pay 264
Flexible Budgeting 254 The Coordination of Goals 264
Evaluating Profit Center Performance Using TriLevel Problem  266
Variable Costing 254
Chapter Review 269
Performance Evaluation of Investment Chapter Assignments  271
Centers 256
Return on Investment 256

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viii Contents

CHAPTER 8 Standard Costing and Variance Analysis 289

BUSINESS INSIGHT IROBOT CORPORATION 289 Business Application 298

Concepts Underlying Standard Costing 290 Computing and Analyzing Direct Labor
Variance Analysis 291 Variances 299
Computing Standard Costs 291 Computing Total Direct Labor Cost Variance 299
Standard Direct Materials Cost 291 Business Application 301
Standard Direct Labor Cost 292 Computing and Analyzing Overhead
Standard Overhead Cost 292 Variances 302
Total Standard Unit Cost 293 Computing Total Overhead Cost Variance 302
The Role of Flexible Budgets in Variance Business Application 307
Analysis 293 Using Cost Variances to Evaluate Managers’
Using Variance Analysis to Control Costs 295 Performance 309
Computing and Analyzing Direct Materials TriLevel Problem  311
Variances 296 Chapter Review  317
Computing Total Direct Materials Cost Variance 296 Chapter Assignments  318

CHAPTER 9 Short-Run Decision Analysis 331

BUSINESS INSIGHT BANK OF AMERICA 331 Segment Profitability Analysis 338

Concepts Underlying Decision Analysis 332 Incremental Analysis for Sales Mix
Concepts Underlying Incremental Analysis 332 Decisions 340
Incremental Analysis for Outsourcing Sales Mix Analysis 341
Decisions 335 Incremental Analysis for Sell-or-Process-
Outsourcing Analysis 335 Further Decisions 343
Incremental Analysis for Special Order Sell-or-Process Further Analysis 343
Decisions 336 The Management Process 345
Special Order Analysis: Price and Relevant Cost TriLevel Problem  346
Comparison 337 Chapter Review 348
Special Order Analysis: Minimum Bid Price for Chapter Assignments  350
Special Order 338
Incremental Analysis for Segment
Profitability Decisions 338

CHAPTER 10 Capital Investment Analysis 365

BUSINESS INSIGHT AIR PRODUCTS AND CHEMICALS, Disposal or Residual Values 370
INC. 365
The Net Present Value Method 371
Concepts Underlying Long-Term Decision Advantages of the Net Present Value Method 371
Analysis 366
The Net Present Value Method Illustrated 371
Capital Investment Analysis 366
Other Methods of Capital Investment
The Minimum Rate of Return on Investment 367
Analysis 373
Capital Investment Analysis Measures and The Payback Period Method 373
Methods 369
The Accounting Rate-of-Return Method 374
Expected Benefits from a Capital Investment 369
The Management Process 377
Equal Versus Unequal Cash Flows 369
TriLevel Problem  378
Carrying Value of Assets 369
Chapter Review 380
Depreciation Expense and Income Taxes 369
Chapter Assignments  381

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Contents ix

CHAPTER 11 Pricing Decisions, Including Target Costing and Transfer Pricing 393

BUSINESS INSIGHT LAB 126 393 Pricing Based on Target Costing 404
Concepts Underlying Pricing Decisions 394 Differences Between Cost-Based Pricing and Target
Revenue Recognition and Pricing Policies 394 Costing 405
Pricing Policy Objectives 394 Target Costing Analysis in an Activity-Based
Management Environment 406
External and Internal Pricing Factors 395
Pricing for Internal Providers of Goods and
Economic Pricing Concepts 396
Services 407
Total Revenue and Total Cost Curves 396
Transfer Pricing 408
Marginal Revenue and Marginal Cost Curves 397
Developing a Transfer Price 409
Auction-Based Pricing 398
Other Transfer Price Issues 410
Cost-Based Pricing Methods 399
Using Transfer Prices to Measure Performance 410
Gross Margin Pricing 399
Pricing and the Management Process 412
Return on Assets Pricing 400
TriLevel Problem  413
Summary of Cost-Based Pricing Methods 401
Chapter Review 416
Pricing Services 402
Chapter Assignments  417
Factors Affecting Cost-Based Pricing Methods 403

CHAPTER 12 Quality Management and Measurement 435

BUSINESS INSIGHT FACEBOOK 435 Measuring Quality: An Illustration 445

Concepts Underlying Quality 436 Evaluating the Costs of Quality 445
Recognition of Quality 437 Evaluating Nonfinancial Measures of Quality 447
Deming Prizes 437 The Role of Management Information
EFQM Excellence Award 437 Systems in Quality Management 449
Malcolm Baldrige National Quality Award 438 Enterprise Resource Planning Systems and Software
as a Service 449
ISO Standards 438
Managers’ Use of MIS 449
Financial and Nonfinancial Measures of
Quality 440 TriLevel Problem  451

Financial Measures of Quality 440 Chapter Review 453

Nonfinancial Measures of Quality 442 Chapter Assignments  454
Measuring Service Quality 445

CHAPTER 13 The Statement of Cash Flows 469

BUSINESS INSIGHT AMAZON.COM, INC. 470 Depreciation, Amortization, and Depletion 478
Concepts Underlying the Statement of Cash Gains and Losses 479
Flows 471 Changes in Current Assets 479
Relevance of the Statement of Cash Flows 471 Changes in Current Liabilities 480
Classification of Cash Flows 472 Schedule of Cash Flows from Operating Activities
Required Disclosure of Noncash Investing and 482
Financing Transactions 474 Step 2: Determining Cash Flows from
Alternate Presentations of Operating Activities 474 Investing Activities 483
Step 1: Determining Cash Flows from Investments 484
Operating Activities 476 Plant Assets 484

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x Contents

Step 3: Determining Cash Flows from Cash Flow Ratios 491

Financing Activities 487 Free Cash Flow 493
Bonds Payable 487 Asking the Right Questions About the Statement
Common Stock 487 of Cash Flows 494
Retained Earnings 488 Ethical Considerations in Analyzing the Statement
Treasury Stock 488 of Cash Flows 495
A Look Back At: Amazon.com, Inc. 496
Step 4: Preparing the Statement of Cash
Flows 489 Review Problem  497

Cash Flows and the Financial Statements 490 Chapter Review 500
Chapter Assignments  501
Analyzing Cash Flows 491

SUPPLEMENT TO CHAPTER 13 The Direct Method of Preparing the Statement of

Cash Flows 519

Determining Cash Flows from Operating Cash Payments for Operating Expenses 521
Activities 519 Cash Payments for Interest 522
Cash Receipts from Sales 520 Cash Payments for Income Taxes 522
Cash Receipts from Interest and Dividends 520 Compiling the Statement of Cash Flows 522
Cash Payments for Purchases 520 Assignments 524

CHAPTER 14 Financial Statement Analysis 528

BUSINESS INSIGHT STARBUCKS CORPORATION 529 Evaluating Operating Asset Management 547
Concepts Underlying Financial Performance Supplemental Financial Ratios for Assessing
Measurement 530 Operating Asset Management and Liquidity 549
Standards of Comparison 531 Evaluating Market Strength with Financial
Sources of Information 532 Ratios 550

Tools and Techniques of Financial Analysis 534 Financial Statement Analysis and
Performance Assessment 551
Horizontal Analysis 534
Evaluating Quality of Earnings 553
Trend Analysis 536
Accounting Methods 553
Vertical Analysis 537
Accounting Estimates 554
Financial Ratio Analysis 540
One-Time Items 555
Comprehensive Illustration of Financial
Ratio Analysis 540 Management Compensation 557
A Look Back At: Starbucks Corporation  558
Evaluating Profitability and Total Asset
Management 541 Review Problem  559
Evaluating Liquidity 543 Chapter Review  563
Evaluating Financial Risk 545 Chapter Assignments  564

Appendix A The Time Value of Money 585

Endnotes 593
Glossary 595
Company Name Index 607
Subject Index 608

Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
 Latest Research on Student Learning

We talked to over 150 instructors and discovered that current

textbooks did not effectively:
• Help students logically process information
• Build on what students already know in a carefully guided sequence
• Reinforce core accounting concepts throughout the chapters
• Help students see how the pieces of accounting fit together

Crosson/Needles addresses these challenges by creating a better solution for you.

This includes new features and a brand new structure for enhanced learning.

We have worked hard to create a textbook

that mirrors the way you learn!

© Martin Marraud/Getty Images

Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
 A Logical Methodology to Building Knowledge:
THE Three Section Approach

Crosson/Needles continuously evolves to meet the needs of today’s learner.

As a result of our research, the chapters have been organized into a Three
Section Approach, which helps students more easily digest the content.

1 The first section is Concepts and focuses on the overarching accounting con-
cepts that require consistent reiteration throughout the course.
2  With a clear understanding of the concepts, you can proceed to the second
section, Accounting Applications. Here, you can practice the application of
accounting procedures with features like “Apply It!”.
3  Finally, move to section three, Business Applications. This section illustrates how the
concepts and procedures are used to make business decisions. Real company exam-
ples are used throughout the chapter to show the relevance of accounting.

“I think this new chapter structure would be much easier for students to read
and comprehend.”

Shannon Ogden
Black River Technical College

T riLevel Problems within CengageNOW mirror the Three Section Approach and con-
nect the sections—Concepts, Accounting Applications, and Business Applications. In
this way, the problems teach you to think holistically about an accounting issue.

xii Preface

Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
 Preface xiii

Breaking Down the Three Section Approach

SECTION 1: CONCEPTS
In Section 1, students experience the Concepts related to each chapter. In this case, concepts are the overarching ­accounting
concepts that need to be reinforced throughout the accounting course, such as measurement, recognition, the matching rule,
and classification.

Every chapter’s Section 1 reinforces these key concepts so that once students understand the concepts, they can apply them to
every aspect of the management process—from planning to performing to evaluating to communicating information about a
business. This is a clear and logical way to present accounting.
908 Chapter 20: The Budgeting Process

seCtion 1 ConCePTs
ConCepts
■■ Comparability
■■ Understandability
Concepts Underlying the
Budgeting Process
Relevant Budgeting is the process of identifying, gathering, summarizing, and communicating
leaRning objeCtive financial and nonfinancial information about an organization’s future activities. The
budgeting process provides managers of all types of organizations the opportunity to
Define budgeting and
match their organizational goals with the resources necessary to accomplish those goals.
describe how it
Budgeting empowers all in the organization to understand organizational goals in terms
relates to the concepts of
of their responsibilities and be held accountable for budget plans and results since they
comparability and
can be compared. Budgeting is synonymous with managing an organization. Budgets
understandability.
are plans of action based on forecasted transactions, activities, and events.
The concepts of understandability and comparability underlie the power of budget-
ing. Budgeting enhances understandability, since managers and employees will under-
stand their organizational roles and responsibilities based on how the budget links the
organization’s strategic plans to its annual plans. Because the budget expresses these
plans and objectives in concrete monetary terms, managers and employees are able to
understand and act in ways that will achieve them. Budgeting enhances comparability,
since budget-to-actual comparisons give managers and employees a means of monitor-
ing the results of their actions. As you will see in this chapter, budgeting is not only an
essential part of planning; it also helps managers command, control, evaluate, and report
“It does a very good job in explaining each concept and reinforcing each one by giving specific
on operations.
examples.”
the Master Budget
Paul Jaijairam A master budget consists of a set of operating budgets and a set of financial budgets
Bronx Community College that detail an organization’s financial plans for a specific period, generally a year. When
a master budget covers an entire year, some of the operating and financial budgets may
show planned results by month or by quarter. As the term implies, operating budgets
are plans used in daily operations.
Operating budgets include:
■■ sales budget
■■ production budget
■■ direct materials purchases budget
■■ direct labor budget
■■ overhead budget
■■ selling and administrative expenses budget
Copyright 2013 Cengage Learning. All cost
■■
RightsofReserved.
goods manufactured budget
May not be copied, scanned, or duplicated, in whole or in part.
The sales budget is prepared first because it is used to estimate sales volume and
revenues. Once managers know the quantity of products or services to be sold and how
many sales dollars to expect, they can develop other budgets that will enable them to
xiv Preface

SECTION 2: ACCOUNTING APPLICATIONS

In Section 2, students learn the accounting procedures and the technical application of concepts. Students can apply
the fundamental concepts they have already learned in Section 1. Section 2 includes things like building budgets and
­creating schedules and reports.

910 Chapter 20: The Budgeting Process

seCtion 2 ACCoUnTIng APPLICATIons

aCCounting appliCations
■■ Prepare operating
budgets
■■ Sales budget
■■ Production budget
■■ Direct materials
purchases budget
■■ Direct labor budget
■■ Overhead budget
■■ Selling and administra-
tive expenses budget
■■ Cost of goods manufac-
tured budget
■■ Prepare financial budgets
■■ Budgeted income
statement
■■ Cash budget
Preparation of a Master Budget
Exhibits 1, 2, and 3 display the elements of a master budget for a manufacturing orga-
nization, a retail organization, and a service organization, respectively. As these illustra-
tions indicate, the process of preparing a master budget is similar in all three types of
organizations in that each prepares a set of operating budgets that serve as the basis
for preparing the financial budgets. The sales budget (or, in service organizations, the
service revenue budget) is prepared first because it is used to estimate sales volume and
revenues. Once managers know the quantity of products or services to be sold and how
many sales dollars to expect, they can develop other budgets that will enable them to
manage their resources so that they generate profits on those sales.
Exhibit 1
Preparation of a Master Budget for a Manufacturing Organization
Sales Budget

■■ Budgeted balance
sheet
Production
Relevant Budget
leaRning objeCtives

Identify the elements

Operating Direct Materials Direct Labor
of a master budget in Budgets Purchases Budget Budget
Overhead Budget
different types of
organizations and the
guidelines for preparing
budgets. Cost of Goods
Manufactured Budget

Prepare the operating

“Section
budgets2that
walks through the accounting procedures very well. I like the use of a visual plus
support the
Selling and
Cost of Goods
narrative
the to explain the procedures.”
financial budgets. Sold Budget* Administrative
Expenses Budget
Gerald Childs
Prepare a budgeted
Waukesha County Technical College Budgeted Income
income statement, a Statement
cash budget, and a budgeted
balance sheet.
Financial Budgeted
Cash Budget
© Cengage Learning 2014

Budgets Balance Sheet

Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
Capital
Expenditures Budget
 Preface xv

SECTION 3: BUSINESS APPLICATIONS

With a solid foundation of the fundamental accounting concepts as well as how to apply these concepts when performing
accounting procedures, students are now ready for Section 3: Business Applications. This section teaches students how
managerial accounting information is used to make business decisions.

926 Chapter 20: The Budgeting Process

seCtion 3 BUsIness APPLICATIons

business
appliCations
■■ Planning
Budgeting and the
■■ Performing Management Process
■■ Evaluating
Budgets are essential to accomplishing an organization’s strategic plan. They are used
■■ Communicating
to communicate understandable information, coordinate activities and resource usage,
motivate employees, and provide comparative information to evaluate performance. For
Relevant example, a board of directors may use budgets to determine managers’ areas of respon-
leaRning objeCtive sibility and to measure managers’ performance in those areas. Budgets are also used to
manage and account for cash.
Explain why
budgeting is essential
to the management process. Advantages of Budgeting
Budgeting is advantageous for organizations, because budgets:
■■ foster organizational communication
■■ ensure a focus both on future events and on resolving day-to-day issues
■■ assign resources and the responsibility to use them wisely to managers who are held
accountable for their results
■■ can identify potential constraints before they become problems
■■ facilitate congruence between organizational and personal goals
■■ define organizational goals and objectives numerically, against which actual perfor-
mance results can be evaluated

Budgeting and goals

Budgeting helps managers achieve both long-term and short-term goals.
long-term goals strategic planning is the process by which management establishes
an organization’s long-term goals. These goals define the direction that an organization
will take and are the basis for making annual operating plans and preparing budgets.
Long-term goals cannot be vague. They must set specific tactical targets and timetables
and assign responsibility to specific personnel. For example, a long-term goal for a com-
pany that currently holds only 4 percent of its product’s market share might specify
that the vice president of marketing is to develop strategies to ensure that the company
controls 10 percent of the market in five years and 15 percent by the end of ten years.

“This is a nice and useful touch to help students tie everything together. The theory can be dry at
times, so this recap
t helps engage the students’ attention again.”

Dennis Mullen
City College of San Francisco
What Can Cause the Planning Process to Fail?
When chief financial officers were asked what caused their planning process to fail, the six factors
they most commonly cited were:1
• An inadequately defined strategy
ja / iStockphoto.com

Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
• No clear link between strategy and the operational budget
• Lack of individual accountability for results
• Lack of meaningful performance measures
• Inadequate pay for performance
 optimal price, which is $32.50 per unit.
If all the information used in microeconomic theory were certain, picking the opti-
mal price would be fairly easy. Although an analysis relies on projected amounts for unit
sales, product costs, and revenues, it usually highlights cost patterns and the unantici-
pated influences of demand. For this reason, it is important that managers consider the
microeconomic approach to pricing when setting product prices.

auction-Based pricing
In recent years, as a result of auctions hosted by Internet companies like eBay, yahoo,
and Priceline.com, auction-based pricing has skyrocketed in popularity. Auction-based
pricing occurs in one of two ways:
xvi ■■ Sellers post what they have to sell, ask for price bids, and accept a buyer’s offer to Preface
purchase at a certain price, or
■■ Buyers post what they want, ask for prices, and accept a seller’s offer to sell at a
certain price.
To illustrate the seller’s auction-based price, suppose a corporation like Intel has
an excess of silicon chips after a production run. The company posts a message on the
Internet asking for the quantity of silicon chips that prospective buyers are willing to buy
and the price that they are willing to pay. After the offers are received, the company pre-
pares a demand curve of all offers and selects the one that best fits the quantity of silicon
chips it has available for sale.
To illustrate the buyer’s auction-based price, consider an individual who wants to fly

Examples, Activities, and Practice
round-trip to Europe on certain dates and posts his or her needs on one of the Internet’s
auction markets. After receiving the offers to sell round-trip tickets to Europe, the indi-
vidual will accept the offer that best suits his or her needs.
Auction-based pricing will continue to grow in importance as a result of the escalat-
ing amount of business that is being conducted over the Internet by both organizations
and individuals. Just about anything can be bought or sold via the Internet.

Business Perspective

▲
What’s It Worth to Shop Online?
TriLevel Problem Throughout the chapter, Business Perspective
929

© Cengage Learning 2014

© Alija / iStockphoto.com

The Internet makes it possible to price efficiently at the level of marginal costs. For instance, at websites like Priceline.com, travelers pick a destination
features keep students engaged by providing real
and a price they are willing to pay for air or hotel reservations. The price must be guaranteed by credit card. An airline or hotel has a limited amount of
business context and examples from well-known
Randi Quelle is the manager of the electronics department in a large dis-
time to accept or reject the bid. If the bid is accepted, the buyer is obligated to pay for the air or hotel reservation. The hotels and airlines are often will-
count store. During a recent meeting, Quelle and her supervisor agreed
soLUTIon
Budgets and information that might be useful include:
ing to accept the low bid prices because the marginal cost of filling an additional seat on an airplane or an extra room in a hotel is very low.
companies, including Google, CVS, Boeing, Ford
that Quelle’s goal for the next year would be to increase the number of
flat-screen televisions sold by 20 percent. The department sold 500 TV
• Breakdown by month of last year’s sales to use as a guide to build this
year’s monthly targets. This would include seasonal sales information.
sets last year. Two salespersons currently work for Quelle. What types of
Motor Company, Microsoft, L.L. Bean, and The
• Budgets by salesperson, which may indicate a need for a third sales-
budgets should Quelle use to help her achieve her sales goal? What kinds person.
of information should those budgets provide? • Inventory and purchasing information.

ChApter 20
Assume that a product has the total cost and total revenue sOLUTION
Walt Disney Company. •
•
Budgets of sales promotion and advertising.
Information on customer flow and the best times to sell.
Try IT! se9, se10, e12A, e13A, e14A, e15A, e12B, e13B, e14B,

The Budgeting Process

curves pictured in Exhibit 2A. The difference between total
revenue and total cost is the same at the 4,000- and 9,000-
unit levels. Which of these two levels of activity would you
chose as goals for total sales over the life of the product?
4,000. If the same total profit will be made at both the 4,000- and the 9,000-unit levels, e15B
it does not make economic sense to produce the additional 5,000 units.
Try IT! se2, e2A, e2B

Business insight TriLevel Problem

Framerica Corporation The beginning of this chapter focused on Framerica Corporation. One of Framerica’s pri-
orities is to help employees attain personal goals. A participatory budgeting process is a
highly effective way to achieve goal congruence between a company’s goals and objec-
Chapter Assignments tives and employee personal aspirations. Complete the following requirements in order to 933
Framerica Corporation is one of the leading manufacturers of pic- leArning oBJeCtiVes answer the questions posed at the beginning of the chapter.
CHE-NEEDLES_FINM-12-0107-025.indd 1106 17/12/12 8:30 PM
ture frames in North America. Because the company believes its work operating Budgets section 1: Concepts 919
force is its most valuable asset, one of its priorities is to help employ- Define budgeting and describe What concepts underlie the usefulness of the budgeting process?
ees attain their personal goals. One highly effective way of achieving Key
how it Terms
relates to the concepts of
Exhibit 10 section 2: Accounting Applications

Jeremy Hoare/Photoshot
congruence between a company’s goals and its employees’ personal comparability and understandability. How does the budgeting process translate long-term goals into operating objectives?
Cost of Goods Framecraft Company
Assume Framerica has an Information Processing Division that provides database
aspirations is through a participatory budgeting process—an ongoing Manufactured Budget
Identify the elements of a master management services Costforof
the professional
goods photographers
Manufactured and artists who buy its frames.
Budget source of
dialogue that involves personnel at all levels of the company in mak- budget
budgetcommittee
in different928 (LO5)
types of cost ofthe
Suppose goods
divisionmanufactured
uses state-of-the-art
For the year endedequipment
Decemberand pro forma
31 employs financial
five information spe-
Data
cialists. Each specialist works an average of 160 hours a month. Assume the division’s con-
ing budgeting decisions. This ongoing dialogue provides both manag- budgetedand
organizations balance
the sheet 924for
guidelines
Framerica (LO4)
Corporation budget
trollerDirect
918the(LO3)
materials
has compiled used:
following information:
statements 909 (LO1)
ers and lower-level employees with insight into the company’s current budgeted income
preparing budgets. directDirect labor budget
materials 916 (LO3)
inventory, production budget 913 (LO3)
Direct materials
Actual Data for Forecasted Data
statement 920 (LO4) beginning purchases
direct materials $ 1,200*sales budget 912 purchases
(LO3) budget
activities and future direction and motivates them to improve their Past year for This year
Prepare the operating
(LO1) budgets that Purchases 45,550 Direct materials
performance, which, in turn, improves the company’s performance.
budgets Business Insight and TriLevel Problems ▲
budgeting
support908
908
the (LO1)
financial budgets.
budget 914 (LO3)
financial
Client
Cost budgets
billings (sales)
november December
908 available
(LO1)
$25,000
of direct materials
$35,000
sales forecast
January February 913 March(LO3)
purchases budget
selling and administrative
$25,000 $20,000 $40,000

Each chapter opens with a Business Insight that shows how a

Selling and administrative
1. ConCept ▶ What concepts underlie the usefulness of the budgeting capital expenditures master
expenses budget 908 (LO1)
for use $46,750 expenses 11,000budget 12,500 917 (LO3)
Prepare a budgeted income 12,000 13,000 12,000
process? budget 921
statement, (LO4)
a cash budget, and a operating
Operating Less budgets
direct
supplies materials908 (LO1) 3,500
inventory,
2,500 static
2,500 budgets2,500 Direct927 (LO5)
materials
4,000

budgeted small company would use accounting information to make deci-

cash budget
balance921 (LO4)
sheet. overhead
Processing
ending
budget 916 (LO3)
overhead 3,200
Cost of direct materials used
3,500
1,500*
strategic
3,000
$ 45,250
planning
2,500
purchases budget
3,500926 (LO5)

2. ACCounting AppliCAtion ▶ How does the budgeting process continuous budget 928 (LO5) participative budgeting 927sales
(LO5) zero-based
month of budgeting 928 (LO5)
translate long-term goals into operating objectives?
sions.
Explain The
why Business
budgeting Insight
is essential poses
cent Overhead
are collected three
in the
costs first monthquestions—each
following sale, and 10 percent ofOverhead
are collected
171,045
which Of theDirect
clientlabor
in the budget
billings, 60 percent are cash
costs collected during the54,300 sale, 30 per-
Direct labor budget

second month following sale. Operating supplies are paid for in the month of purchase.

3. Business AppliCAtion ▶ Why are budgets an essential part of

will be answered in one Selling
to the management process.
of
lowing
the
Total
Work
three
andmanufacturing
administrative
in process
the cost’s
sections
costs
expenses and processing
inventory, beginning
incurrence.
of the
overhead chapter.
$270,595
are paid in the month
—**
Atfol- the

planning, controlling, evaluating, and reporting on business? end of each

Chapter chapter, thepaidTriLevel
Assignments The
Lessdivision
work in Problem
hasprocess
a bank inventory,
loan of $12,000
revisits the Business
with a 12 percent annual interest
ending —** rate. Interest is
© Cengage Learning 2014

monthly, and $2,000 of the loan principal is due on February 28 of next year. Income taxes
Cost of goods manufactured $270,595
Insight company to tie the three
earn $8.50 sections together.
of $4,550 for this calendar year are due and payable on March 15 of next year. The information
specialists an hour, and all payroll-related employee benefit costs are included in * The desired direct materials inventory balance at the beginning of the year is $1,200 (24,000 ounces 3
$0.05 per ounce); at year end, it is $1,500 (30,000 ounces 3 $0.05 per ounce).
** It is the company’s policy to have no units in process at the beginning or end of the year.
DisCussion Questions
LO 1, 2 DQ1. ConCept ▶ What is a master budget and what are the guidelines that enhance its
CHE-NEEDLES_FINM-12-0107-020.indd 929 understandability and comparability? 15/12/12 4:24 PM

LO 3, 4 DQ2. Why does the preparation of operating budgets before financial budgets increase
the usefulness of the budget process?
▲

Apply It! and Try It! Sample Company is preparing

LO 5 a production budget for the
DQ3. Business year. The
AppliCAtion soLUTIon
▶ Why is the difference between a static budget and a
Apply It! activities throughout the chapter
company’s policy is to maintain a finished goods inventory equal to one-
continuous budget important in understanding budgets? January February March
half of the next month’s sales. Sales of 4,000 units are budgeted for April.
Sales in units 3,000 2,400 6,000
Complete the following monthly DQ4. budget
LO 5 production ConCept for the▶
first Business
quarter AppliCAtion ▶ How are understandability and compa-
illustrate and solve a short exercise and then to determine how many units should be produced in January, February,
and March:
rability enhanced when knowinggoods
Add desired units of ending
whoinventory
finished
is responsible for the budgeting
1,200 process?
3,000 2,000

reference end-of-chapter assignments where LO 5

Desired total units
DQ5. ConCept ▶ Business AppliCAtion ▶ Why does the use of budgets in the
January February March Less desired units of beginning finished
4,200 5,400 8,000

management process reinforce the goodsconcepts

inventory of comparability1,500 and understandability to
students can go to Try It! This provides students
1,200 3,000
Sales in units 3,000 2,400 6,000
better business performance? Total production units 2,700 4,200 5,000
Add desired units in ending finished
with an example to reference as they are work- goods inventory ? ? ?
Desired total units ? ?
short exerCises
? Try IT! se2, se3, se4, e2A, e3A, e4A, e5A, e6A, e7A, e2B, e3B,

ing to complete homework, making getting Less desired units of beginning

finished goods inventory
LO 1, 2
?
Budget Usefulness ? ?
e4B, e5B, e6B, e7B

started less intimidating. Total production units ? ? ?

se1. ConCept ▶ Budgeting is not only an essential part of planning; but it also helps man-
agers command, control, evaluate, and report on operations. Why are the concepts of under-
standability and comparability important in budgeting? List the reasons for your answer.
Jeremy Hoare/Photoshot

LO 3 Production Budget
se2. Windsor Lock Company’s controller is preparing a production budget for the year.
The company’s policy is to maintain a finished goods inventory equal to one-half of
the following month’s sales. Sales of 5,000 locks are budgeted for April. Complete the
monthly production budget for the first quarter:
January February March
Sales in units 5,000 4,000 6,000
Add desired units of ending finished goods inventory 2,000 ? ?
Desired total units 7,000 ? ?
CHE-NEEDLES_FINM-12-0107-020.indd 907 Less desired
15/12/12units
4:24 of
PMbeginning finished goods inventory ? ? ?
CHE-NEEDLES_FINM-12-0107-020.indd 919
Total production units 4,500 ? ?
15/12/12 4:24 PM

CHE-NEEDLES_FINM-12-0107-020.indd 933 15/12/12 4:24 PM

Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
 TRILEVEL PROBLEM:
Tying it all Together!

NEW TriLevel Problems within CengageNOW follow

the same Three Section Approach the book employs
by including Concepts, Accounting Applications, and
­Business Applications. The problems reinforce and apply
overarching concepts while also tying the three sections
together to give students a complete understanding.

“Any time the students are engaged in

the learning process and have to actively
participate, I think they enhance their
retention of the material. The ability to
relate this to an actual company (whether
real or not) allows students to see this

© Cengage Learning 2014

information in practice.”
Chuck Smith
Iowa Western Community College

96% of instructors surveyed said that the

TriLevel Problem adequately coached
students through thinking about an issue.

“The [TriLevel Problem] links procedure to “It reviews everything students have learned
the creation and use of information, and in a format they will find useful, and it links
closes that loop between what students the three areas together. I love this. Each one
are doing and why it is useful.” ending with a business application.”
Andy Williams Joan Ryan
Edmonds Community College Clackamas Community College

Preface xvii

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 NEW CengageNOW Features
Help Students Make Connections

NEW Blueprint Problems

▲
In CengageNOW, these problems cover primary learning
objectives and help students understand the fundamen-
tal accounting concepts and their associated building
blocks—not just memorize the formulas required for a
single concept. Blueprint Problems include rich feedback and
explanations, providing students with an excellent learning
resource.

© Cengage Learning 2014

NEW Blueprint Connections ▲

Blueprint Connections in CengageNOW build upon concepts

covered and introduced within the Blueprint Problems. These
scenario-based exercises help reinforce students’ knowledge
of the concept.

NEW Animated Activities

▲

Animated Activities in CengageNOW are videos that guide stu-

dents through selected core topics using a realistic company
example to illustrate how the concepts relate to the everyday
© Cengage Learning 2014

activities of a business.

xviii Preface

Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
 NEW CengageNOW Features
Help Students Make Connections

▲
NEW Check My Work Feedback

Written feedback is now available when students click on “Check My Work” in CengageNOW to provide students with
valuable guidance as they work through homework items.

© Cengage Learning 2014

▲
NEW Post-submission Feedback

After students have submitted their assignments for a grade in CengageNOW, they can go back and see the correct
answers to better understand where they might have gotten off track.

© Cengage Learning 2014

NEW Apply It Demos

These demonstration videos in CengageNOW will help students
complete end-of-chapter questions from Section 2.

Preface xix

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Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
 Acknowledgments

In developing and refining the tenth edition of Managerial Accounting, we wanted to

ensure that we were creating a textbook that truly reflected the way we teach accounting.
To do so, we asked for feedback from over 150 professors, other professional colleagues,
and students. We want to recognize those who made special contributions to our efforts
in preparing this edition through their reviews, suggestions, and participation in surveys,
interviews, and focus groups. We cannot begin to say how grateful we are for the feed-
back from the many instructors who have generously shared their responses and teaching
experiences with us.
John G. Ahmad, Northern Virginia Community College Meg Costello, Oakland Community College
Robert Almon, South Texas College Richard Culp, Ball State University
Elizabeth Ammann, Lindenwood University Sue Cunningham, Rowan Cabarrus Community College
Paul Andrew, SUNY, Morrisville Robin D’Agati, Palm Beach State College
Ryan Andrew, Columbia College Chicago Emmanuel Danso, Palm Beach State College
Sidney Askew, Borough of Manhattan Community College Robert Derstine, Kutztown University
Joe Atallah, Irvine Valley College Michael Dole, Marquette University
Shele Bannon, Queensborough Community College Jap Efendi, University of Texas at Arlington
Michael Barendse, Grossmont College Dustin Emhart, North Georgia Technical College
Beverly R. Beatty, Anne Arundel Community College Denise M. English, Boise State University
Robert Beebe, Morrisville State College Michael Farina, Cerritos College
Teri Bernstein, Santa Monica College J. Thomas Franco, Wayne County Community College
Cynthia Bird, Tidewater Community College Dean Gray, Reedley College
David B. Bojarsky, California State University Timothy Green, North Georgia Technical College
Linda Bolduc, Mount Wachusett Community College Timothy Griffin, Hillsborough Community College
John Bongorno, Cuyahoga Community College Teri Grimmer, Portland Community College
Anna Boulware, St. Charles Community College Michael J. Gurevitz, Montgomery College
Amy Bourne, Oregon State University Qian Hao, Wilkes University
Thomas Branton, Alvin Community College Sara Harris, Arapahoe Community College
Billy Brewster, University of Texas at Arlington Syed Hasan, George Mason University
Nina E. Brown, Tarrant County College Wendy Heltzer, DePaul University
Tracy L. Bundy, University of Louisiana at Lafayette Merrily Hoffman, San Jacinto College
Jacqueline Burke, Hofstra University Shanelle Hopkins, Carroll Community College
Marci L. Butterfield, University of Utah David Hossain, California State University, Los Angeles
Charles Caliendo, University of Minnesota Phillip Imel, NOVA Community College, Annadale
Gerald Childs, Waukesha County Technical College ThankGod O. Imo, Tompkins Cortland Community College
James J. Chimenti, Jamestown Community College Paul Jaijairam, Bronx Community College
Alice Chu, Golden West College Gene Johnson, Clark College
Sandra Cohen, Columbia College Howard A. Kanter, DePaul University
Lisa Cole, Johnson County Community College Irene Kim, George Washington University
Debora Constable, Georgia Perimeter College Christopher Kinney, Mount Wachusett Community College
Barry Cooper, Borough of Manhattan Community College Gordon Klein, University of California, Los Angeles
Cheryl Copeland, California State University, Fresno Shirly A. Kleiner, Johnson County Community College
Susan Cordes, Johnson County Community College Leon Korte, University of South Dakota

xxi

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xxii Acknowledgments

Lynn Krausse, Bakersfield College
Les Kren, University of Wisconsin, Milwaukee
Donnie Kristof-Nelson, Edmonds Community College
Christopher Kwak, De Anza College
Richard Lau, California State University, Los Angeles
Suzanne R. Laudadio, Durham Technical Community College
George Leonard, St. Petersburg College
Lydia Leporte, Tidewater Community College
Hui Lin, DePaul University
Joseph Lipari, Montclair State
Xiang Liu, California State University, San Bernardino
Angelo Luciano, Columbia College
Susan Lueders, DePaul University
Cathy Lumbattis, Southern Illinois University
Sakthi Mahenthiran, Butler University
Eileen Marutzky, DePaul University
Robert Maxwell, College of the Canyons
Mark McCarthy, DePaul University
Clarice McCoy, Brookhaven College
Terra McGhee, University of Texas at Arlington
Florence McGovern, Bergen Community College
Cheryl McKay, Monroe County Community College
John McQuilkin, Roger Williams University
Jeanette Milius, Iowa Western Community College
Jeanne K. Miller, Cypress College
Rita Mintz, Calhoun Community College
Jill Mitchell, Northern Virginia Community College,
Annandale
Odell Moon, Victor Valley College
Kathleen Moreno, Abraham Baldwin Agricultural College
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Dennis Mullen, City College of San Francisco
Elizabeth A. Murphy, DePaul University
Penny Nunn, Henderson Community College
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Sy Pearlman, California State University, Long Beach
Rama Ramamurthy, College of William & Mary
Lawrence A. Roman, Cuyahoga Community College
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Raton
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Chris Widmer, Tidewater Community College
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Ronald Zhao, Monmouth University
Teri Zuccaro, Clarke University

We also wish to express deep appreciation to colleagues at Santa Fe Community

College, Emory University, and DePaul University, who have been extremely supportive
and encouraging.
Finally, very important to the quality of this book are our Developmental Editor,
Krista Kellman; Executive Editor, Sharon Oblinger; and Senior Brand Manager, Kristen
Hurd.

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 About the Authors

Susan V. Crosson received her B.B.A. degree in economics and accounting from
Southern Methodist University and her M.S. degree in accounting from Texas Tech
University. She is currently teaching in the Goizueta Business School at Emory
­
­University in Atlanta, Georgia. Until recently, she was the Accounting Faculty Lead
and Professor at Santa Fe College in Gainesville, Florida. She has also been on the
faculty of the U
­ niversity of Florida; Washington University in St. Louis; University of
Oklahoma; Johnson County Community College in Kansas; and Kansas City Kansas
Community College. She is internationally known for her YouTube accounting videos
as an innovative application of pedagogical strategies. In recognition of her professional
and academic activities, she was a recipient of the Outstanding Service Award from
the American Accounting Association (AAA), an Institute of Management Accoun-
tants’ Faculty Development Grant to blend technology into the classroom, the F ­ lorida
Association of Community Colleges Professor of the Year Award for Instructional
­
Excellence, and the University of Oklahoma’s Halliburton Education Award for Excel-
lence. Currently, she serves as President of the Teaching, Learning, and Curriculum
section of the AAA. Recently, she served as a Supply Chain Leader for The Commission
on Accounting Higher Education, which published “Pathways to a Profession,” Charting
a National Strategy for the Next Generation of Accountants. She has also served on vari-
ous committees for the AICPA, Florida Institute of CPAs, and the Florida Association
of Accounting Educators.

Belverd E. Needles, Jr., received B.B.A. and M.B.A. degrees from Texas Tech
­ niversity and his Ph.D. degree from the University of Illinois at Urbana-Champaign.
U
He teaches financial accounting, managerial accounting, and auditing at DePaul Uni-
versity, where he is an internationally recognized expert in international accounting and
education. He has published in leading journals and is the author or editor of more
than 20 books and monographs. His current research relates to international finan-
cial reporting, performance measurement, and corporate governance of high-perfor-
mance companies in the United States, Europe, India, and Australia. His textbooks are
used throughout the world and have received many awards, including (in 2008) the
McGuffey Award from the Text and Academic Authors Association. Active in many aca-
demic and professional organizations, he is immediate past Vice-President-Education of
the American Accounting Association. He has received the Distinguished Alumni Award
from Texas Tech University, the Illinois CPA Society Outstanding Educator Award and
its Life-Time Achievement Award, the Joseph A. Silvoso Faculty Award of Merit from
the Federation of Schools of Accountancy, the Ledger & Quill Award of Merit, and the
Ledger & Quill Teaching Excellence Award. He was named Educator of the Year by
the American Institute of CPAs, Accountant of the Year for Education by the national
honorary society Beta Alpha Psi, and Outstanding International Accounting Educator
by the American Accounting Association. He has received the Excellence in Teaching
Award from DePaul University.

xxiii

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Another random document with
no related content on Scribd:
The Project Gutenberg eBook of Tales out of
school
 This ebook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
or re-use it under the terms of the Project Gutenberg License
included with this ebook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.

Title: Tales out of school

Author: Frank R. Stockton

Release date: September 23, 2023 [eBook #71711]

Language: English

Original publication: New York: Charles Scribner's Sons, 1875

Credits: Bob Taylor, Tim Lindell and the Online Distributed

Proofreading Team at https://www.pgdp.net (This file
was produced from images generously made available
by The Internet Archive/American Libraries.)

*** START OF THE PROJECT GUTENBERG EBOOK TALES OUT

OF SCHOOL ***
MALI BOWED RESPECTFULLY TO HIM.
TALES OUT OF SCHOOL
BY

FRANK R. STOCKTON

NEW EDITION.

NEW YORK:
CHARLES SCRIBNER’S SONS,
1916
 Copyright 1875
BY
SCRIBNER, ARMSTRONG & CO.

Copyright 1903
BY
MARIAN E. STOCKTON
 PREFACE.

It is not generally considered proper to tell tales out of school, but I

shall venture it in this book. And if any of the Arabs, or tigers, or
Cabordmen, that I tell tales about, do not like it, they can come to me
and find as much fault as they please. I shall be glad to hear what
they have to say.
But I shall not tell all the tales myself. The lady who in “Round-
about Rambles,” took you to Pompeii and many strange and
interesting places, will tell you some of these stories.
 CONTENTS.

Colonel Myles’ Adventures in Africa and India 1

A Sugar Camp 31
Silver Plating 34
Very Ancient Animals 37
Iturim and His Fortunes 42
Large Houses for Small Tenants 54
The Wonderful Adventures of Gutefundus 61
Some Big Guns 70
Tom Reynolds and Moriyama 74
Luminous Insects 93
Owls On a Frolic 96
Common and Uncommon Sponges 98
Maghar’s Leap 101
The Sea Cow 120
Two Extremes 123
A Snow Storm in the Tropics 130
How Three Men Went to the Moon 140
Tartar Horses and Horsemen 153
Two Happy Men 156
The Wonderful Ash Tree 162
Work and Water 174
The Land of the White Elephant 178
Curiosities of Vegetable Life 183
Bron and Kruge 203
The Mirage 222
Coral 225
The Great Eastern 232
Kangaroos 238
The Story of Polargno 241
Turtles and Their Eggs 265
A Few Volcanoes 269
The Absent-Minded Botanist 273
Something True About the Moon 282
A Voyage to the Lower Amazon 287
The Bedouin Arabs 298
Fool-hardy Carl Hofer and the Water Lady 302
Water and Milk from Plants 311
The Jolly Cabordmen 317
 TALES OUT OF SCHOOL.

COLONEL MYLES’ ADVENTURES IN AFRICA

AND INDIA.

He had shot many a buffalo. Indeed he sometimes thought that he

had shot too many, for out on our Western prairies it was often
impossible for him to use the meat, or even to take the skins of the
animals that fell before his generally unerring rifle. And the Colonel
was very much opposed to the useless slaughter of wild animals. If
the buffaloes did any harm while alive or could be put to any use
when dead it was all very well to shoot them. Otherwise, not.
And yet, whenever Colonel Myles saw a buffalo he could not help
shooting at it, if he happened to have his gun with him.
So he made up his mind that he would go abroad and hunt
animals that ought to be killed.
Now you understand how the Colonel happened to go to Africa.
 A COMFORTABLE TRIP.
His sporting experiences did not commence as soon as he set foot
on “Afric’s burning shores,” and indeed it was several months before
he could make all the arrangements for a trip through those portions
of the country where wild and savage beasts, worthy the bullets of
such a hunter, were to be found.
Some parts of his journey were very pleasant, even when he saw
no game, because of the novel modes of traveling.
For instance he was carried many miles in a sort of portable
lounge which was borne on the heads of four negroes. The Colonel
lay at ease on this elevated conveyance, which had a little fence on
each side to keep him from rolling off, and hoops so arranged that
when it rained or the sun shone too brightly, a canopy might be
thrown over him without interfering with his comfort.
Here he could lie and read or smoke while his swift-footed bearers
carried him along at a rate which would have obliged a horse to
hurry himself considerably in order to keep up with them.
 Another time, accompanied by a number of negro soldiers, and
preceded by a set of fantastic savages who danced before him with
horns on their heads and shields and spears in their hands, he rode
for many miles upon a well trained native bull.
This steed was not very fast, but he had great endurance and
traveled very easily and pleasantly, without seeming to mind in the
least the black fellows who leaped and shouted in front of him in a
way that would have frightened the soberest old horse that ever
hauled a sand cart.
Perhaps the bull knew that these men were merely trying to
impress upon the mind of the Colonel that they were wonderfully
brave, and that with their spears and their yells they could scare
away any enemy that might be encountered, while in fact a white
man with a couple of pistols could have frightened them out of their
wits in about half a minute.

THE COLONEL ON THE BULL.

 But whether the bull knew this or not, he paid no attention to the
dancing braves, and carried the Colonel faithfully for many a long
mile.
But Colonel Myles did not always travel on bulls or in hammocks.
After a time he found an admirable horse, on which he rode on many
a hunting expedition.
Among the first large animals he hunted—he did not count deer
and such small game—were rhinoceroses, of which there were a
great many in that part of the country.
One of his first hunts of the kind began in rather a curious manner.
He had heard that there were rhinoceroses to be found in a certain
hilly part of the country, and, accompanied by two negroes, he
started on his horse quite early in the morning.
Reaching some very rough ground, he thought it better to climb
over the rocks on foot, so he tied his horse to the branch of a tree
and set off with his companions to reconnoitre. They walked up and
down through the bushes, and over gullies, searching for the big
animals they were after, but not a horn of one of them could they
see.
At last, returning somewhat discouraged, they reached the top of a
little hill, and there their eyes were greeted with an unexpected sight.
They saw a rhinoceros, a big fellow too, but he was not hunted,—
he was hunting!
And what was especially startling was that he was hunting the
Colonel’s horse!
The great beast had caught sight of the horse, tied to the tree, and
was charging down upon him at full speed.
When they arrived on the scene, the rhinoceros was quite near the
horse, who was rearing and pitching with terror, and pulling furiously
at his bridle. The rhinoceros had his head down and his long sharp
horn seemed to be almost under the poor horse.
Another second and the horse would certainly perish.
 THE RHINOCEROS SEEMED ALMOST UNDER THE POOR HORSE.
But in that second the Colonel’s rifle was at his shoulder and a
sharp shot rang out in the air.
The ball struck the great beast just behind his shoulder. It did not
kill him, but it stopped his onward course. He turned toward the hill,
and at that moment the horse tore himself loose and galloped away.
The rhinoceros now advanced towards the three men. But he
found them very different kind of game from a poor horse tied to a
tree.
Again the Colonel’s rifle rang out and Mr. Thick-hide rolled over
dead.
This was the first rhinoceros Colonel Myles had ever shot, and he
was proud of his achievement, as well he might be, for it is not an
easy thing to kill a rhinoceros.
If you do not hit him in exactly the right place you might as well fire
at a brick wall.
 But Colonel Myles was a capital shot, although he had never had
such difficult creatures to shoot as this great animal which now lay at
his feet. Perhaps his alligator hunts in Florida had taught him how to
aim at iron-clad game, but there is a difference between shooting
alligators and rhinoceroses. If you miss the alligator there is
generally an end of the matter, for he will plunge into the water as
soon as he can, and disappear. But if you miss the rhinoceros he will
plunge after you, and if you cannot disappear very rapidly there may
be an end of the matter, but in the wrong way.
The horse did not run very far, and one of the swift-footed negroes
soon caught him.
This was not the only occasion when a rhinoceros proved a very
dangerous animal to hunt. One day the Colonel was out with a large
party. One man besides himself was mounted on a horse, and there
were half-a-dozen negroes on foot, well armed with guns.

THE RHINOCEROS AFTER THE COLONEL.

 For some time they scoured the country without finding any signs
of a rhinoceros, but at last the tracks of one were discovered, and he
was followed up to his retreat.
When Colonel Myles first caught sight of him he was standing
quietly under a tree. Our hunter took a good aim at him and fired, but
just as he fired, his horse, apparently bitten by a fly, gave a start, and
the ball struck the rhinoceros on one of his heavy flaps of skin, with
just enough effect to make him turn around to see who was there.
Then the Colonel fired again—he had a double-barreled rifle—and
this time the ball struck the rhinoceros fair on the nose, and it made
him mad. Without stopping to consider the matter, he turned
squarely round and charged down straight upon the hunters.
The Colonel had no time to reload his gun, so he put spurs to his
horse and dashed away as fast as he could go.
The other man on horseback did not wait for the savage beast to
come after him but galloped off in another direction. As to the
negroes, they seemed to forget that they had guns, or else they
thought that if the Colonel could not hit the beast in the right spot
there was no use in their trying to do it. At any rate they took to their
heels. As the rhinoceros dashed on, he ran right over one negro,
knocking him heels over head, and he came after the Colonel and
his horse at a rate that gave good reason to expect that in a minute
or two he would get his horn under the horse and toss him over.
But the horse was a good one and he kept ahead of the beast until
his rider loaded again. Then the Colonel turned and as he was so
near the rhinoceros he put a ball into him that rolled him over dead.
This was one of the most dangerous hunting expeditions in which
Colonel Myles ever engaged. Had his horse been a poor one, or had
he stumbled, there would have been no more hunts in Africa—or
anywhere else—for our hero.
He soon had another rhinoceros hunt, which was not dangerous,
but very peculiar.
He started out with four negroes on horseback, and none of them
were armed with anything but the swords of the country, which are
not exactly the things with which to cut sheet-iron, or rhinoceros
hides.
The Colonel was well mounted, and of course had his rifle. Before
long two rhinoceroses were started up together, and they rushed out
of the bushes so suddenly and dashed away in such a frightened
way that the Colonel could not get a shot at them. Whichever way
they ran there was always a negro between his gun and the flying
beast.
Perceiving that the rhinoceroses were trying their best to get away,
the negroes became very brave, and rode after them as if they
intended to chop them up into little pieces, if they could only get
some fair cracks at them.
In fact they were so enthusiastic, and kept so close to the
rhinoceroses that it was impossible for the Colonel to fire at the
animals without running the risk of killing a black man, and so on
they went as hard as they all could gallop. The rhinoceroses seemed
like a couple of great fat hogs, but they could run famously, and it
was as much as the hunters could do to keep up with them.
One darkey kept ahead of the rest, and quite close to the flying
beasts, and he whacked away at their thick hides, with no other
effect than to make them run faster.
The other negroes shouted and yelled as if they were trying to
frighten the rhinoceroses; and, at any rate, to make them run as fast
as they could.
The Colonel held his gun ready to fire if he could get around where
he could have a fair shot, but his shouts to the negroes to fall back
and leave the beasts to him were totally disregarded. They had
found some game that was afraid of them, and they were going to
chase it, as long as it would run away.
 CHASING A PAIR OF RHINOCEROSES.
The result of it all was that the rhinoceroses ran into some heavy
brushwood where the Colonel’s horse could not follow them, and he
did not get even one shot at them.
It was very disappointing to him, after having been so close to the
game. But he made up his mind that he would never again go
hunting when there were mounted negroes in the party. They put
themselves forward entirely too prominently.
These negroes were excellent fellows to run after any thing which
was not apt to run after them.
The Colonel once saw a very funny incident which exhibited this
quality in the natives in a very striking manner.
In a village where Colonel Myles was staying, making
arrangements for a hunt, there was a large elephant, which belonged
to another village some forty miles away.
 This elephant was rather an unruly beast, and did not at all like his
new quarters, or the new driver who had charge of him.
He seemed to be home-sick, and he gave a great deal of trouble
by his uneasy disposition. One day he broke loose, and no sooner
did he find himself at liberty than he determined to go home.
So off he started at the top of his speed, but he had not gone far
before his flight was discovered, and six or eight negroes, snatching
up their swords, immediately gave chase.
They were all on foot, but they could run so fast that they soon
caught up with the elephant.
But then all their trouble commenced. He wouldn’t stop!
They shouted, they yelled, they brandished their swords, and
running before the great beast, they tried their best to make him
stop.
But the elephant, with his trunk and his tail in the air, strode along
at a tremendous pace. He did not seem to like his company, for he
bellowed loudly as he ran, but they could no more stop him than a lot
of spring chickens could stop you if you took it in your head to run
home some day in recess-time.
The negroes sprang in front of the elephant, until it seemed as if
he certainly would run over them, and they dashed at him from all
sides, waving their swords in his face as they shouted to him to halt,
but he kept bravely on until the Colonel lost sight of the party.
Together, they ran four or five miles, and then the negroes thought
they might as well give up that chase as a bad job, and the elephant
went on to his home unmolested.