Answer:
$38.00
Explanation:
The dollar value of each coupon of each coupon is also known as the PMT of the Bond and this is made twice in a year for this question.
The Bond elements can now be established as :
N = 13 x 2 = 26
YTM = 7.6 %
PV = ($1,000)
FV = $1,000
P/YR = 2
PMT = ?
Using a Financial calculator the PMT is $38.00
Thus, the dollar value of each coupon is $38.00
Addison, a human resource intern, was given an assignment by her manager that meant she must obtain information from other departments to complete it, but some departments refused to share information with an intern. Addison was frustrated because she did not have the power to get the information she needed. In the context of this situation, Addison's manager made the mistake of
Explanation:
It is correct to say that Addison's manager made the mistake of delegating responsibility to an employee without adequate authority. In this case, the manager should acknowledge his mistake and formalize his request in the form of a signed memorandum so that the departments could provide the information he needed knowing that it had been requested by an authoritative employee, the trainee being only the transmitter of the information. manager's message.
People are often involved in different activities. In the context of this situation, Addison's manager made the mistake of delegating responsibility without adequate authority.
A person that has been given a particular role must make sure to finish or accomplishes the tasks given to him. When a tasks is not completed, it makes one to give explanations or excuses.
When Responsibility is without adequate authority, this can result to discontent and dissatisfaction among people..
When one delegate responsibility, do ensure that the person set is accountable and also empower them with the right measure of authority.
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Robert and Becca file jointly. They have taxable income of $60,000 in 2020 (before considering any capital gains or losses). They have a long-term capital gain of $28,000 and a long-term capital loss of $17,000 on sales of stock in the current year. What will their capital gains tax be in the current year
Answer: $0
Explanation:
We should note that based on the information given, Robert and Becca file jointly, therefore, their their capital gains tax be in the current year will be $0.
Assuming they filed separately, their capital gains tax be in the current year will be:
= 15% × ($28,000 - $17,000)
= 0.15 × $11000
= $1650.
But regarding the question, the answer is $0.
As a project engineer, you received the AW analysis below from the finance department. It is for a new piece of equipment you ordered some months ago. You were told the interest rate used was 10% per year, but no first cost or projected salvage value was provided and you want to know them. Determine the values of P and S using the AW values for the year 3. Note: The AW values are equivalent values through the given year, not costs for the single year.
Answer and Explanation:
The computation of the value of P and the value of S is shown below:
For P
The Annual worth of the first cost for the year 3 is $18,899
Now
Annual worth = First Cost(A/P, 10%, 3)
$18,899 = P[0.1(1 + 0.1)^3 ÷ ((1 + 0.1)^3 - 1)]
$18,899 = 0.4021P
P = $46,999
For S
The Annual worth of the salvage value for the year 3 is $6,648
Now
Annual worth = Salvage value(A/F, 10%, 3)
$6,648 = S[0.1 ÷ ((1 + 0.1)^3 – 1)]
$6,648 = 0.30211S
S = $22,005
You are running a hypothetical e-business in this course. Suppose your company only have one employee and three customers who do not access your website frequently. Your company also does not need to process a lot of information; in this case, to save your money, which types of computers does your company need to fulfill such a computing need?
Answer:
do the challnge in brainly it gives u points !!!!
Explanation:
According to the given hypothetical e-business situation, simple personal computers can be used to fulfill the required computing needs.
What is e-business?"E-business is an electronic business or transaction in which user shares the information online. In this, information, products, and services can be shared between business, groups, and individuals and considered as an essential activities."
What is personal computer?"Personal computer is a computer which is a multi-purpose system and its size, capabilities and prize makes it feasible for individual use."
In the given situation, the analyses of data is less which can be fulfilled by the personal computers only and there is no need to purchase systems with special features. The employee can fulfill the requirements of current e-business with the help of any personal computer like desktop, laptop, etc.
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Uptown Bank provides lockbox services. They estimate that you can reduce your average mail time by 2.2 days and your combined clearing and processing time by .75 days by implementing their system. Your firm receives 65 checks a day with an average value of $298 each. The current T-Bill rate is .01 percent per day. Assume a 365-day year. The bank will charge your firm $.15 per check. What is the annual net savings from installing this system?
Answer: $1473.067
Explanation:
First, we calculate the total time that's saved by the firm when it installs the lockbox services. This will be:
= 2.2 days + 0.75 days
= 2.95 days
Then, the gross amount that the firm will save will be:
= 65 × 2.95 × 298 × 0.01%
= $5.7142 per day
Since the bank charges the firm $0.15 per check and the firm receives 65 checks per day, the total cost to the firm will then be:
= 65 × $0.15
= $9.75 per day
The net loss will then be calculated as:
= $9.75 - $5.7142
= $4.0358 per day
Then, to get that for annual, we multiply the above value by 365. This will be:
= $4.0358 × 365
= $1473.067 per annum.
6. Ruben earned a salary of $60,000 in 2001 and $80,000 in 2006. The consumer price index was 177 in 2001 and 221.25 in 2006. Ruben's 2001 salary in 2006 dollars is Ruben earned a salary of $60,000 in 2001 and $80,000 in 2006. The consumer price index was 177 in 2001 and 221.25 in 2006. Ruben's 2001 salary in 2006 dollars is
Answer:
Ruben's 2001 salary in 2006 dollars is $75,000.
Explanation:
This can be calculated as follows:
Ruben's 2001 salary = $60,000
Consumer price index in 2001 = 177
Consumer price index in 2006 = 221.25
Therefore, wee have:
Ruben's 2001 salary in 2006 dollars = Ruben's 2001 salary * (Consumer price index in 2006 / Consumer price index in 2001) ............... (1)
Substituting the relevant valued into equation (1), we have:
Ruben's 2001 salary in 2006 dollars = $60,000 * (221.25 / 177) = $75,000
Therefore, Ruben's 2001 salary in 2006 dollars is $75,000. This indicates that Reuben's purchasing power increased between 2001 and 2006.
Harrison Forklift's pension expense includes a service cost of $10 million. Harrison began the year with a pension liability of $28 million (underfunded pension plan). 1. Interest cost, $6; expected return on assets, $4; amortization of net loss, $2.2. Interest cost, $6; expected return on assets, $4; amortization of net gain, $2. 3. Interest cost, $6; expected return on assets, $4; amortization of net loss, $2; amortization of prior service cost, $3 million.Required:Prepare the appropriate general journal entries to record Harrison's pension expense in each of the above independent situations regarding the other components of pension expense ($ in millions).
Answer:
1. ($ in millions)
Dr Pension expense (total) $14
Dr Plan assets (expected return on assets)$4
Cr PBO $16
Cr Net loss—AOCI(current amortization) $2
2 ($ in millions)
Dr Pension expense (total) $10
Dr Plan assets (expected return on assets) $4
Dr Net gain—AOCI(current amortization) $2
Cr PBO $16
($10 service cost + $6 interest cost)
3. ($ in millions)
Dr Pension expense (total) $17
Dr Plan assets (expected return on assets) $4
Cr PBO $16
Cr Net loss—AOCI(current amortization) $2
Cr Prior service cost(current amortization) $3
Explanation:
Preparation of the appropriate general journal entries to record Harrison's pension expense in
1. ($ in millions)
Dr Pension expense (total) $14
($16+$2-$4)
Dr Plan assets (expected return on assets)$4
Cr PBO $16
($10 service cost + $6 interest cost)
Cr Net loss—AOCI(current amortization) $2
2 ($ in millions)
Dr Pension expense (total) $10
($16-$4-$2)
Dr Plan assets (expected return on assets) $4
Dr Net gain—AOCI(current amortization) $2
Cr PBO $16
($10 service cost + $6 interest cost)
3. ($ in millions)
Dr Pension expense (total) $17
($16+$2+$3-$4)
Dr Plan assets (expected return on assets) $4
Cr PBO($10 service cost + $6 interest cost) $16
Cr Net loss—AOCI(current amortization) $2
Cr Prior service cost(current amortization) $3
A Rhode Island company produces communion wafers for churches around the country and the world. The little company produces a lot of wafers, several hundred million per year. When in production, the process produces wafers at the rate of 112 per second. During this production process, the wafers must spend 12 minutes passing through a cooling tube.
Required:
How many wafers does the cooling tube hold on average when in production?
Answer:
80,640 wafers
Explanation:
Calculation to determine How many wafers does the cooling tube hold on average when in production
Using this formula
I = R x T
Where,
R = 112 wafers per second x 60
R = 6720 wafers per minute
T = 12 minutes
Let compute for I using the formula aboi
I = 6720 x 12
I = 80,640 wafers
Therefore How many wafers does the cooling tube hold on average when in production are 80,640 wafers
A manufacturing process consists of three processes. Step 1 requires 10 minutes per unit, step 2 requires 6 minutes per unit and step 3 requires 7 minutes per unit. 40% of units that complete the third step require rework, which means those units must start the process over at step 2 (processing times are the same for units being reworked) and rework is always successful. Demand at the shop is 0.4 units per minute.What is the capacity of the shop (in units per units per minute)?
Answer: 0.1 units per minute
Explanation:
Step 1 time = 10 minutes per unit
Step 2 time = 6 minutes + (0.4 * 6 minutes for those units reworked)
= 8.4 minutes
Step 3 time = 7 minutes + (0.4 * 7 minutes for those units reworked)
= 9.8 minutes
Step 1 will determine the process capacity because it is the one that takes the most time and therefore is the bottleneck process.
Capacity of process = 1 / Bottleneck minutes
= 1 / 10
= 0.1 units per minute
Drag each label to the correct location on the image.
Identify the features of stocks and bonds.
There are various types of investments. The most common type of investments are Bonds and Stocks.
What is difference between Bond and Stock?A bond is an investment which is considered as less risky because it provides fixed coupon rate as return.
A Stock is considered as risky investment because its returns vary.
The features of Bond are : It has Coupon rate, Face value and Maturity date
The features of Stock are : It has Closing Price
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Answer:
stock- closing price; bond- coupon rate, face value, maturity date
Explanation:
The following transactions were completed by The Wild Trout Gallery during the current fiscal year ended December 31: Jan. 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $1,935 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $11,090 balance owed by Premier GS Co., which is bankrupt. July 16. Received 25% of the $19,900 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. Nov. 23. Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,155 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$8,340; Fogle Co., $2,475; Lake Furniture, $6,365; Melinda Shryer, $1,800. Dec. 31. Based on an analysis of the $979,800 of accounts receivable, it was estimated that $42,600 will be uncollectible. Journalized the adjusting entry.
Answer:
The Wild Trout Gallery
Adjusting Journal Entry:
Dec. 31:
Debit Bad Debts Expense $87,595
Credit Allowance for Doubtful Accounts $87,595
To record bad debts expense for the year and bring the Allowance for Doubtful Accounts to a credit balance of $42,600.
Explanation:
a) Data and Analysis:
Jan. 19: Accounts receivable (Arlene Gurley) $1,935 Allowance for Doubtful Accounts $1,935
Apr. 3: Allowance for Doubtful Accounts $11,090 Accounts receivable (Premier GS Co.) $11,090
July 16: Cash $4,975 Allowance for Doubtful Accounts $14,925 Accounts receivable (Hayden Co.) $19,900
Nov. 23: Accounts receivable (Harry Carr) $3,155 Allowance for Doubtful Accounts $3,155
Dec. 31: Allowance for Doubtful Accounts $18,980 Accounts receivable $18,980 (Cavey Co.,$8,340; Fogle Co., $2,475; Lake Furniture, $6,365; Melinda Shryer, $1,800)
Dec. 31: Bad Debts Expense $87,595 Allowance for Doubtful Accounts $87,595
Allowance for Doubtful Accounts
Accounts Title Debit Credit
Accounts receivable (Arlene Gurley) $1,935
Accounts receivable
(Premier GS Co.) $11,090
Accounts receivable
(Hayden Co.) $14,925
Accounts receivable (Harry Carr) $3,155
Accounts receivable $18,980
Bad Debts $82,505
Balance c/d $42,600
Duration measures Group of answer choices weighted-average time until a bond's half-life. weighted-average time until cash flow payment. the time required to make excessive profit from the investment. weighted-average time until a bond's half-life and the time required to make excessive profit from the investment. weighted-average time until cash flow payment and the time required to make excessive profit from the investment.
Answer:
weighted average time until cash flow payment.
Explanation:
Duration is simply known as a market value based model. It was set up so as to be able to manage interest rate risk. It is also defined as the effective measure of the interest rate risk of an asset.
Duration is commonly known as the weighted average time to maturity of a loan (fixed-income instrument) using the relative PV's of the CF's as weights. It is used commonly in bond investment and analysis application. it can be applied to individual fixed income instruments, a liability, or an entire portfolio.
features of duration includes: duration and maturity, duration & yield and duration & coupon.
Shining Cookie Company, Inc., in Murfreesboro, TN bought a new ice cream maker at the beginning of the year at a cost of $12,000. The estimated useful life was four years, and the residual value was $960. Assume that the estimated productive life of the machine was 9,200 hours. Actual annual usage was 3,680 hours in year 1; 2,760 hours in year 2; 1,840 hours in year 3; and 920 hours in year 4.
Required:
1. Complete a separate depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.)
a. Straight-line.
b. Units-of-production (use four decimal places for the per unit output factor).
c. Double-declining-balance.
Answer:
a. Straight Line :
Year 1 : $2760
Year 2 : $2760
Year 3 : $2760
Year 4 : $2760
b. Units of production :
Year 1 : $4416
Year 2 : $3312
Year 3 : $2208
Year 4 : $1104
a. Double Declining Balance :
Year 1 : $6000
Year 2 : $3000
Year 3 : $1500
Year 4 : $560
Explanation:
a. Straight Line Depreciation:
( Cost of Ice cream maker - Residual Value ) / Useful life in years
( $12,000 - $960 ) / 4 = $2760
b. Units of production :
( Cost of Ice cream maker / Total Productive machine hours ) * Annual Usage
Year 1 ($12,000 / 9200 ) * 3680 = 4416
Year 2 ($12,000 / 9200 ) * 2760 = 3312
Year 3 ($12,000 / 9200 ) * 1840 = 2208
Year 4 ($12,000 / 9200 ) * 920 = 1104
c. Double declining method :
Year 1: $12,000 * 50% = $6000
Year 2 : $12,000 * 25% = $3000
Year 3 : $12,000 * 12.5% = $1500
Year 4 : $12,000 * 6.25% = $560
Aloma, a university graduate who started a successful business, wants to start an endowment in her name that will provide scholarships to CE students. She wants the scholarship to provide $11,000 per year and expects the first one to be awarded on the day she fulfills the endowment obligation. If Aloma plans to donate $250,000, what rate of return must the university realize in order to award the annual scholarship forever
Answer:
the rate of return is 4.60%
Explanation:
The computation of the rate of return is shown below;
= Scholarship provided per year ÷ (Expected donated amount - Scholarship provided per year)
= $11,000 ÷ ($250000 - $11,000)
= $11,000 ÷ $239,000
= 4.60%
Hence, the rate of return is 4.60%
The following production data were taken from the records of the Finishing Department for June:
Inventory in process, June 1, 30% completed 4,000 units
Completed units during June 65,000 units
Ending inventory, 60% completed 65,000 units
The number of materials equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process, is:______
Answer:
the equivalent units of production related to the material is 126,000 units
Explanation:
The computation of the equivalent units of production related to the material is shown below:
= Completed units + Ending inventory units - Beginning inventory units.
= 65,000 units + 65,000 units - 4,000 units
= 126,000 units
hence, the equivalent units of production related to the material is 126,000 units
Red Oak Inc., a furniture manufacturing company, manufactures furniture only when an order is received. It coordinates and integrates the activities of its suppliers, designers, and carpenters to ensure an efficient production cycle. This enables Red Oak Inc. to deliver the products to customers within five working days. This is an example of _______ management.
Answer:
Supply Chain
Explanation:
Supply chain management can be regarded as management of processes involving transformation of goods and services from raw materials into final desired products as well as their flow. Supply chain management deals with active streamlining of business activities of supply-side so that customers values can be maximized and competitive advantage can be gained in market
To calculate compound interest earnings, the formula requires that you know the amount of principal, the number of time periods, and
O the age of the depositor
O the amount of bank fees
o the interest rate
O the inflation rate
Answer:
the interest rate.
Explanation:
Compound interest is generally calculated based on the interest rate on a loan, principal and the accumulated interest gained from previous periods.
This ultimately implies that, to calculate compound interest earnings, the formula requires that you know the amount of principal, the number of time periods, and the interest rate.
To find the future value, we use the compound interest formula;
[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.
How to control quality?
Answer:
Explanation:
1. Set your quality standards.
In some industries, you may have to meet quality standards set by an outside body, such as an industry association, the local health and safety inspector, or a government regulatory agency. In others, there aren't any official quality standards, so you'll need to set your own.
Each department of your business will have different quality control standards. However, they must all be objectively measurable. For example, if you're developing quality control standards for your customer service team, “sounding friendly on the phone" is not a measurable standard. Measurable standards might include:
Answering all customer calls by the second ring
Responding to all customer service emails within four hours
Resolving customer service problems in five minutes or less
2. Decide which quality standards to focus on.
Of course, you want to ensure quality in all aspects of your operation. However, begin by focusing on the most important measures — those that have the biggest effect on your profits and your customer experience. This will enable you to get results quickly and also keeps you and your team from becoming overwhelmed.
For instance, if you own a restaurant, keeping the restrooms clean is definitely something to monitor in your quality control program—but not the most important thing. Getting orders out to customers quickly and accurately is a more important standard because it has a more direct effect on the quality of experience and customer satisfaction.
3. Create operational processes to deliver quality.
W. Edwards Deming, the founder of modern quality control, believed that well-designed processes lead to high-quality products and services. If you create good processes, continually measure the results of the processes, and work to consistently improve the process, your product or service will get better and better.
Starting with your critical operations, create step-by-step processes that include benchmarks. For instance, in a B2B company's accounting department, operational processes might require preparing and delivering invoices within 24 hours after a job is completed or a product is delivered. In a restaurant, operational processes might require servers to pick up food for delivery to the customer’s table within two minutes of it being prepared.
4. Review your results.
Most business software, from financial and accounting apps to customer relationship management or customer service tools, lets you customize the information you collect and use dashboards to view it at a glance. Review your data regularly to see how well your company is meeting its quality standards.
5. Get feedback.
Use measurable feedback from external sources, such as customer surveys, online ratings and reviews and net promoter scores (NPS), to get a fuller picture of product and service quality. Also, get regular feedback from employees. How well are the operational processes working to deliver quality? How could they be improved?
6. Make improvements.
Once you’re meeting your quality control standards, don't stop there. For example, if you own a residential cleaning service business and you can cut the time it takes your maids to clean a home by 25 percent, you’ll be able to handle 25 percent more business without hiring any additional employees. That will really boost your bottom line.
No matter how well your processes are running, quality control shows there's always room for improvement, and making small changes can pay off in big ways.
you start out with $2,000 in a savings account and save $100 a month for 10 years and the account has a 2.5% interest rate. based on that calculation how much interest would you earn?
Answer: 25%
Explanation:
If D0 = $2.00, g (which is constant) = 6%, and P0 = $40, what is the stock's expected dividend yield for the coming year?
Marriott International is a worldwide operator, franchisor, and licensor of hotels, residential, and timeshare properties totaling nearly $1.8 billion in net property and equipment. Assume that Marriott replaced furniture that had been used in the business for five years. The records of the company reflected the following regarding the sale of the existing furniture:Furniture (cost) Accumulated depreciation $8,000,000 7,700,000 Required: Prepare the journal entry for the disposal of the furniture, assuming that it was sold for: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars not in millions.) a. $300,000 cash b. $900,000 cash c. $100,000 cash
Answer:
Net Book Value of furniture:
= Cost price - Accumulated depreciation
= 8,000,000 - 7,700,000
= $300,000
a. $300,000 cash
Account Title Debit Credit
Cash $300,000
Accumulated Depreciation $7,700,000
Furniture $8,000,000
b. $900,000 cash
Account Title Debit Credit
Cash $900,000
Accumulated Depreciation $7,700,000
Furniture $8,000,000
Gain on disposal $600,000
c. $100,000 cash
Account Title Debit Credit
Cash $100,000
Accumulated Depreciation $7,700,000
Loss on Disposal $200,000
Furniture $8,000,000
You manage an equity fund with an expected risk premium of 10% and an expected standard deviation of 15%. The rate on Treasury bills (risk-free rate) is 5%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. The expected return and standard deviation of your client's overall portfolio is:__________ a. 11.0% and 9.0% b. 10.0% and 8.4% c. 15.0% and 9.0% d. 5.0% and 15.0%
Answer:
Portfolio Mean return = 11%
Portfolio Stdev = 0.09 or 9%
Option a is the correct answer
Explanation:
The mean return of a portfolio consisting of two securities can be calculated by multiplying the weight of each security in the portfolio by the mean return of that security and adding the products for each security. The formula for two asset or security portfolio return (mean) can be written as follows,
Portfolio Mean = wA * rA + wB * rB
Where,
w represents the weight of each security r represents the mean return of each security
The return on the equity fund = risk free rate + risk premium
The return on the equity fund = 5% + 10% = 15%
Portfolio Mean return = 60% * 15% + 40% * 5%
Portfolio Mean return = 11%
The standard deviation is a measure of the total risk. The standard deviation of a portfolio consisting of two securities, one of which is a risk free security and has zero standard deviation, can be calculated as follows,
Portfolio Stdev = Weight of risky security * Standard deviation of risky security
Portfolio Stdev = 0.6 * 0.15
Portfolio Stdev = 0.09 or 9%
The marketing decision and research problem should be defined clearly so that a. communication between the researcher and the decision maker can be reduced. b. research can be designed properly. c. the researcher knows what results to come up with. d. the decision maker understands the decision to be made. e. all of the above.
Answer:
b. research can be designed properly.
Explanation:
Market research can be defined as a strategic technique which typically involves the process of identifying, acquiring and analyzing informations about a business. It involves the use of product test, surveys, questionnaire, focus groups, interviews, etc.
Secondary market research can be defined as a method designed to determine the demographics of a particular target market.
The marketing decision and research problem should be defined clearly so that the research can be designed properly. Some of the factors to be considered in the design of a market research are;
I. Corporate culture.
II. The environment of the decision maker.
III. The decision maker's objectives.
Capalbo Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 52,000 labor-hours. The estimated variable manufacturing overhead was $2.78 per labor-hour and the estimated total fixed manufacturing overhead was $1,192,360. The actual labor-hours for the year turned out to be 52,600 labor-hours. The predetermined overhead rate for the recently completed year was closest to:______.
a. $2.78
b. $25.45
c. $25.71
d. $22.93
Answer:
Predetermined overhead Absorption rate = $22.93. per labour hour
Explanation:
Predetermined Overhead absorption rate(POAR) = Estimate overhead /Estimated labour hours
Estimated overhead = $1,192,360
Estimated labour hours =52,000 hours
Overhead absorption rate = $1,192,360/52,000 hours =$22.93 per labour hour
Predetermined overhead Absorption rate = $22.93. per labour hour
A holiday sales flyer advertised a video game system for a significantly reduced price and
video game with purchase. Later that day, the sales associate told you that the store is out of
both items. Instead, you were offered a different system and games at full retail prices. What is this type of fraud called?
The U.S. Chamber of Commerce provides a free monthly bank reconciliation template at business.uschamber/tools/bankre_m.asp. Hanna Lind just received her bank statement notice online. She wants to reconcile her checking account with her bank statement and has chosen to reconcile her accounts manually. Her checkbook shows a balance of $715. Her bank statement reflects a balance of $1,386. Checks outstanding are No. 2146, $53; No. 2148, $93; No. 2152, $178; and No. 2153, $490. Deposits in transit are $122 and $77. There is a $18 service charge and $9 ATM charge in addition to notes collected of $68 and $15.
Prepare Hanna’s bank reconciliation.
Answer:
Hanna’s bank reconciliation Statement.
Balance as per Bank Statement $1,386
Add Outstanding Lodgments :
Lodgments ($122 + $77) $199
Less Unpresented Checks :
No. 2146, $53
No. 2148, $93
No. 2152, $178
No. 2153, $490 ($814)
Balance as per Cash Book $771
Explanation:
The Bank Reconciliation Statement is used to provide an accurate cash balance figure and is prepared as above.
Assume Caterpillar, Inc. (CAT) reports investments in affiliated companies, consisting mainly of its 50% ownership of Shin Caterpillar Mitsubishi, Ltd. Caterpillar reports those investments on its balance sheet at $576 million, and provides the following footnote in its 10-K report.
Investments in unconsolidated affiliated companies Our investments in affiliated companies accounted for by the equity method consist primarily of a 50% interest in Shin Caterpillar Mitsubishi Ltd. (SCM) located in Japan. Combined financial information of the unconsolidated affiliated companies accounted for by the equity method (generally on a three-month lag, e.g., SCM results reflect the periods ending September 30) was as follows:
Years Ended December 31 (Millions of Dollars) 2011 2010 2009
Results of operations:
Sales $4,007 $4,420 $4,140
Cost of sales 3,210 3,526 3,257
Gross profit $797 $894 $883
Profit $157 $187 $161
Caterpillar's profit $73 $81 $73
Sales from SCM to Caterpillar of approximately $1.67 billion, $1.81 billion and $1.73 billion in 2011, 2010 and 2009 respectively, are included in the affiliated company sales. In addition, SCM purchased $268 million, $273 million and $282 million of products from Caterpillar in 2011, 2010 and 2009, respectively.
December 31 (Millions of Dollars) 2011 2010 2009
Financial position:
Assets
Current assets $2,062 $1,807 $1,714
Property, plant and equipment-net 1,286 1,119 1,120
Other assets 173 176 194
3,521 3,102 3,028
Liabilities
Current liabilities 1,546 1,394 1,348
Long-term debt due after one year 269 309 318
Other liabilities 393 145 188
2,208 1,848 1,854
Ownership $1,313 $1,254 $1,174
Ceterpillar's investment in unconsolidated affiliated
companies, December 31 (millions of dollars) 2011 2010 2009
Investment in equity method companies $576 $542 $540
Plus: Investment in cost method companies 16 20 25
Investment in unconsolidated affiliated companies $592 $562 $565
Required:
What assets and liabilities of unconsolidated affiliates are included on CAT's balance sheet as a result of the equity method of accounting for those investments?
Answer:
The assets and liabilities of the unconsolidated affiliates are not included on CAT's balance sheet using the equity method of accounting.
The only accounts that are included are CAT's investments in the unconsolidated affiliated companies of $592, $562, and $565 for the three years and CAT's share of Shin Caterpillar Mitsubishi, Ltd. profits or losses, totalling $157, $187, and $161 for the years 2011, 2010, and 2009 respectively.
Explanation:
a) Data:
Caterpillar's investment in unconsolidated affiliated companies,
December 31 (millions of dollars) 2011 2010 2009
Investment in equity method companies $576 $542 $540
Plus: Investment in cost method companies 16 20 25
Investment in unconsolidated affiliated companies $592 $562 $565
Shin Caterpillar Mitsubishi, Ltd.
December 31 (millions of dollars) 2011 2010 2009
Profit $157 $187 $161
Caterpillar's share (50%) $78.5 $93.5 $80.5
b) The equity method does not require consolidating the accounts of the subsidiaries with the parent's. The parent reports its investments in the and its share of profits from the subsidiaries.
Sole Purpose Shoe Company is owned and operated by Sarah Charles. The company manufactures casual shoes, with manufacturing facilities in your state. Sarah began the business this year, and while she has a great deal of experience in manufacturing popular and comfortable shoes, she needs some help in evaluating her results for the year, and asks for your help.
Sarah’s first questions for you have to do with the general ideas and terminology used to evaluate variances.
1. Why might Sarah want to use standard costs to compare with her actual costs?
a. Management can evaluate the differences between standard costs and actual costs to focus on correcting the cost variances.
b. Standard costs give management a cost structure for products that is applicable for the entire life of the business.
c. Standard costs allow management to motivate employees by comparing their performance to what it would be under perfect conditions.
2. What are some possible drawbacks to using standard costs that Sarah might consider? Check all that apply.
a. Since standards are impossible to attain, they are a distraction from the work at hand.
b. Since standards never change, they do not reflect reality.
c. Standards limit operating improvements because employees may be discouraged from improving beyond the standards.
d. Employees may focus only on efficiency improvement and their own operations rather than considering the larger objectives of the organization.
e. Standards may become "stale" in a dynamic manufacturing environment.
Answer:
1. The reason Sarah might want to use standard costs to compare with her actual costs is:
a. Management can evaluate the differences between standard costs and actual costs to focus on correcting the cost variances.
2. Drawbacks of using Standard Costs are:
c. Standards limit operating improvements because employees may be discouraged from improving beyond the standards.
d. Employees may focus only on efficiency improvement and their own operations rather than considering the larger objectives of the organization.
e. Standards may become "stale" in a dynamic manufacturing environment.
Explanation:
Standard costs encourage the pursuit of management goals. They are the costs that should be under a particular type of circumstances. They are usually compared with actual costs to determine their differences or variances. Their use helps management to focus on how to improve overall performance.
Suppose the following information was taken from the 2022 financial statements of FedEx Corporation, a major global transportation/delivery company. (in millions) 2022 2021 Accounts receivable (gross) $ 3,740 $ 4,610 Accounts receivable (net) 3,400 4,350 Allowance for doubtful accounts 340 260 Sales revenue 33,325 35,825 Total current assets 7,170 7,292 Answer each of the following questions. (a) Calculate the accounts receivable turnover and the average collection period for 2022 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Accounts receivable turnover enter the accounts receivable turnover in times rounded to 1 decimal place times The average collection period for 2022
Answer:
Accounts Receivable Turnover 8.6 times
Average collections period 42.44 days
Explanation:
A. Calculation to determine the average collection period for 2022 using this formula
Accounts Receivable Turnover = Sales/Average accounts receivables
Let plug in the formula
Accounts Receivable Turnover = 33,325 /[(3,400+4350)/2]
Accounts Receivable Turnover =33,325/(7,750/2)
Accounts Receivable Turnover =33,325/3875
Accounts Receivable Turnover = 8.6 times
Therefore the Accounts Receivable Turnover will be 8.6 times
B. Calculation to determine the Average collections period using this formula
Average collections period = 365/Accounts Receivable Turnover
Let plug in the formula
Average collections period= 365/8.6
Average collections period= 42.44 days
Therefore The Average collections period will be 42.44 days
Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during April between Swan Company and Bird Company: Apr. 2. Swan Company sold merchandise on account to Bird Company, $19,900, terms FOB shipping point, 1/10, n/30. Swan Company paid freight of $435, which was added to the invoice. The cost of the merchandise sold was $12,500. 8. Swan Company sold merchandise on account to Bird Company, $25,000, terms FOB destination, 2/15, n/30. The cost of the merchandise sold was $15,000. 8. Swan Company paid freight of $650 for delivery of merchandise sold to Bird Company on April 8. 12. Bird Company paid Swan Company for purchase of April 2. 18. Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise. 23. Bird Company paid Swan Company for purchase of April 8. 24. Swan Company sold merchandise on account to Bird Company, $11,200, terms FOB shipping point, n/45. The cost of the merchandise sold was $6,700. 26. Bird Company paid freight of $280 on April 24 purchase from Swan Company. Required: 1. Journalize the April transactions for Bird Company (the buyer). If an amount box does not require an entry, leave it blank.
Answer:
1. Bird Company (Buyer)
Apr-02 Dr Merchandise Inventory $20,335
Cr Accounts Payable $20,335
Apr-08 Dr Merchandise Inventory $25,000
Cr Accounts Payable $25,000
Apr-08 No entry
Apr-12 Dr Accounts Payable $20,335
Cr Cash $19,937
Cr Merchandise Inventory $ 398
Apr-18 Dr Cash $ 2,000
Cr Merchandise Inventory $ 2,000
Apr-23 Dr Accounts Payable $25,000
Cr Cash $24,750
Cr Merchandise Inventory $ 250
Apr-24 Dr Merchandise Inventory $11,200
Cr Accounts Payable $11,200
Apr-26 Dr Merchandise Inventory $280
Cr Cash $280
2.Swan Company (Seller)
Apr-02 Dr Accounts Receivable $20,335
Cr Sales Revenue $19,900
Cr Cash $435
Dr Cost of Goods Sold $12,500
Dr Merchandise Inventory $12,500
Apr-08 Dr Accounts Receivable $ 25,000
Cr Sales Revenue $ 25,000
Dr Cost of Goods Sold $15,000
Cr Merchandise Inventory $15,000
Apr-08 Dr Delivery Expense $650
Cr Cash $650
Apr-12 Dr Cash $19,937
Dr Sales Discounts $ 398
Cr Accounts Receivable $20,335
Apr-18 Dr Sales Returns and allowances $ 2,000
Cr Cash $ 2,000
Apr-23 Dr Cash $ 24,750
Dr Sales Discounts $ 250
Cr Accounts Receivable $25,000
Apr-24 Dr Accounts Receivable $11,200
Cr Sales Revenue $11,200
Dr Cost of Goods Sold $6,700
Cr Merchandise Inventory $6,700
Apr-26 No entry
Explanation:
1. Preparation of the journal entry for Bird Company (the buyer).
Bird Company (Buyer)
Apr-02 Dr Merchandise Inventory $20,335
Cr Accounts Payable $20,335
($19,900+$435)
Apr-08 Dr Merchandise Inventory $25,000
Cr Accounts Payable $25,000
Apr-08 No entry
Apr-12 Dr Accounts Payable $20,335
($19,900+$435)
Cr Cash $19,937
($20,334-$398)
Cr Merchandise Inventory $ 398
($19,900*2%)
Apr-18 Dr Cash $ 2,000
Cr Merchandise Inventory $ 2,000
Apr-23 Dr Accounts Payable $25,000
Cr Cash $24,750
($25,000-$250)
Cr Merchandise Inventory $ 250
(1%*$25,000)
Apr-24 Dr Merchandise Inventory $11,200
Cr Accounts Payable $11,200
Apr-26 Dr Merchandise Inventory $280
Cr Cash $280
2. Preparation of the journal entry for Bird Company the (Seller).
Swan Company (Seller)
Apr-02 Dr Accounts Receivable $20,335
($19,900+$435)
Cr Sales Revenue $19,900
Cr Cash $435
Dr Cost of Goods Sold $12,500
Dr Merchandise Inventory $12,500
Apr-08 Dr Accounts Receivable $ 25,000
Cr Sales Revenue $ 25,000
Dr Cost of Goods Sold $15,000
Cr Merchandise Inventory $15,000
Apr-08 Dr Delivery Expense $650
Cr Cash $650
Apr-12 Dr Cash $19,937
($20,335-$398)
Dr Sales Discounts $ 398
(2%*$19,900)
Cr Accounts Receivable $20,335
(19,900+435)
Apr-18 Dr Sales Returns and allowances $ 2,000
Cr Cash $ 2,000
Apr-23 Dr Cash $ 24,750
Dr Sales Discounts $ 250
(1%*25,000)
Cr Accounts Receivable $25,000
Apr-24 Dr Accounts Receivable $11,200
Cr Sales Revenue $11,200
Dr Cost of Goods Sold $6,700
Cr Merchandise Inventory $6,700
Apr-26 No entry