A company using public relations sends information to media outlets such as

newspapers and radio stations. Who decides what information about the

company the outlets will publish?

A. The media outlets

B. The audience for the media outlets

C. The marketer

D. The publicity agency

N it

Answers

Answer 1

Answer:

A. the media outlets

Explanation:

took the test

Answer 2

A company using public relations sends information to the media outlets such as newspapers and radio stations because it is the media outlets who decide what information the company will publish. Hence, option A is appropriate.

What are Public Relations?

Public relations or the PR sectors are very important functions for the company as well as the institution of their own. The main method of understanding is that the nature of public relations is not very well known, but can be understood to have taken place for a very long period.

The Public Relations in an organization strategically manages the relationship of that organization with that of the individuals and the public residing in their place. The main thing regarding public Relations is that everyone can be upheld for whatever they have been doing for a long period.

Public Relations is given the task to increase the consumer or the public who are more friendly with that the Company to increase. Hence, option A is correct.

Learn more about Public Relations here:

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Related Questions

Airline Accessories has the following current assets: cash, $92 million; receivables, $84 million; inventory, $172 million; and other current assets, $8 million. Airline Accessories has the following liabilities: accounts payable, $78 million; current portion of long-term debt, $25 million; and long-term debt, $13 million. Based on these amounts, calculate the current ratio and the acid-test ratio for Airline Accessories. (Enter your answers in millions, not in dollars. For example, $5,500,000 should be entered as 5.5.)

Answers

Answer:

Current ratio 3.46

Acid-test ratio 1.71

Explanation:

A. Calculation to determine Current ratio

Using this formula

Current ratio =Current assets/Current liablities

Let plug in the formula

Current ratio=$92 million+$84 million+$172 million+$8 million/$78 million+$25 million

Current ratio=$356 million/$103 milion

Current ratio=3.46

B. Calculation to determine the acid-test ratio

Acid-test ratio=$92 million+$0+$84 million/$78 million+$25 million

Acid-test ratio=$176 million/$103 million

Acid-test ratio=1.71

Presented is basic financial information (in millions) from the annual reports of Nike Nike Sales revenue $18,627 Allowance for doubtful accounts, Jan. 1 71.5 Allowance for doubtful accounts, Dec. 31 78.4 Accounts receivable balance (gross), Jan 1 2,566.2 Accounts receivable balance (gross), Dec. 31 2,873.7 Instructions: Calculate the average collection period (DAYS) for Nike. Only record the number and round to one decimal.

Answers

Answer:

See below

Explanation:

Average collection period is computed as

= [Average accounts receivables / Net sales] × 365

Average accounts receivables = [(2,566.2 + 2,873.7)/2] = 2,720

Net sales = 18,627

Average collection period = [2,720/18627] × 365

= 53 days

Newton Corporation was organized on January 1, 2017. On that date, it issued 200,000 shares of its $10 par-value common stock at $15 per share (400,000 shares were authorized). During the period from January 1, 2017, through December 31, 2019, Newton reported net income of $750,000 and paid cash dividends of $380,000. On January 5, 2019, Newton purchased 12,000 shares of its common stock at $12 per share. On December 31, 2019, the company sold 8,000 treasury shares at $8 per share.
Required:
What is the book value of total shareholders’ equity as of December 31, 2019?

Answers

Answer:

$30,290,000

Explanation:

Calculation for the book value of total shareholders’ equity as of December 31, 2019

First step is to calculate the Paid up share capital

Paid up share capital =200000*10

Paid up share capital=20,00,000

Second step is to calculate the Securities premium

Securities premium=2,00,000*5

Securities premium=10,00,000

Third step is to calculate the Net income after dividend

Net income after dividend=750,000-3,80,000

Net income after dividend=370,000

Fourth step is to calculate the Treasury stock at par value

Treasury stock at par value =8,000*10

Treasury stock at par value=80,00

Now let calculate the total shareholders’ equity as of December 31, 2019

Total Equity share holders Fund=20,00,000+10,00,000+370,000-80,000

Total Equity share holders Fund=$30,290,000

Therefore the book value of total shareholders’ equity as of December 31, 2019 is $30,290,000

When a firm declares bankruptcy, Group of answer choices the claims of preferred shareholders are honored before those of the common shareholders. the maximum that shareholders can lose is their original investment in the firm's stock. bond holders have claim to what is left from the liquidation of the firm's assets after paying the shareholders. the maximum that shareholders can lose is their original investment in the firm's stock AND the claims of preferred shareholders are honored before those of the common shareholders. the owners of common stock are the first in line to receive their claims on the firm's assets.

Answers

Answer:

the maximum that shareholders can lose is their original investment in the firm's stock AND the claims of preferred shareholders are honored before those of the common shareholders.

Explanation:

          Bankruptcy may be defined as the legal proceedings that involves a person or a business where the person or the business firm is not able to repay the debts that are outstanding. When a firm or a person files a bankruptcy, there is an automatic stay put by the court that blocks the debts.

         In case of bankruptcy the different shareholders of the firm losses a maximum of their original investment that they have done in the firm while purchasing the stocks. And also the claims of the preferred shareholders are being honored first than those of common shareholders.

why do we have a graduated income tax?​

Answers

Supporters of the progressive system claim that higher salaries enable affluent people to pay higher taxes and that this is the fairest system because it lessens the tax burden of the poor. ... Taxes do not discourage high earners from earning more, and the low tax rate encourages the poor to strive to earn more.

Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 20% of sales. The income statement for the year ending December 31, 2020, is as follows.

BONITA BEAUTY CORPORATION
Income Statement For the Year Ended December 31, 2020

Sales $79,500,000
Cost of goods sold
Variable $33,390,000
Fixed 8,670,000 42,060,000
Gross margin $37,440,000
Selling and marketing expenses
Commissions $15,900,000
Fixed costs 10,159,000 26,059,000
Operating income $11,381,000

The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 8% and incur additional fixed costs of $9,540,000.

Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation's break-even point in sales dollars for the year 2020.

Answers

Answer:

$80,940,000

Explanation:

Calculation for the estimated sales volume in sales dollars that would generate an identical net income for the year ending December 31, 2020

First step is to calculate New Sales commission

New Sales commission = $79,500,000*8%

New Sales commission= 6,360,000

Second step is to calculate Cm ratio

Cm ratio = (79,500,000-6,360,000-33,390,000)/79,500,000 = 50%

Now let calculate the Estimated sales revenue

Estimated sales revenue = (8,670,000+10260000+ 10,159,000+$11,381,000)/.50 = $80,940,000

Therefore the estimated sales volume in sales dollars that would generate an identical net income for the year ending December 31, 2020 will be $80,940,000

14. The last department in a production process shows the following information at the end of the period: Units Beginning Work in Process 25,000 Started into Production 240,000 Ending Work in Process 50,000 How many units have been transferred out to finished goods during the period

Answers

Answer:

the number of units transferred out to finished goods is 215,000 units

Explanation:

The computation of the number of units transferred out to finished goods is shown below;

= beginning work in process units + started into production units - ending work in process units

= 25000 + 240000 - 50000

= 215,000 units

Hence, the number of units transferred out to finished goods is 215,000 units

If a country's nominal interest rate is zero, then Group of answer choices the country's economy is in a liquidity trap. monetary policy is likely to be very effective in stimulating the economy. exchange rates with other countries are likely to increase. exchange rates with other countries are likely to decline. the country's economy has achieved monetary equilibrium.

Answers

Answer:

the country's economy is in a liquidity trap.

Explanation:

A liquidity trap exists when interest rate are  close to or equal to zero.

When there is a liquidity trap, expansionary monetary supply would not work because people would prefer to hold cash due to the believe that a negative economic event is about to occur e.g. deflation

When there is a liquidity trap, individuals prefer to save their monies rather than buy bonds

Liquidity trap was first discovered by John M. Keynes

Solutions to liquidity trap

1. Policies that would make savings less attractive

2, Increased government spending

Liquidity trap occurred in Japan in the 1990s and this led to a deflation

Same facts as #16, except that Jessica files her lawsuit outside the US in a country that uses a "loser pays" rule. Instead of hiring her attorney on a contingency fee, she agrees to pay the attorney a fixed fee of 90,000. Based on a decision tree calculation, the value of Jessica’s litigation BATNA based on these revised facts is (select one):

Answers

Answer:

so when the cats eats the dog the dogs take the bone

Bing Book Bindery has identified two activity cost pools: printing, with an activity driver of batches processed, and binding, with an activity driver of direct labor hours. For the coming quarter, total factory overhead of $140,000 is split such that 65% is allocated to printing and 35% is allocated to binding. Bing makes two types of books: hard cover and soft cover. During the quarter, it expects to produce 5,200 hard cover books and 12,000 soft cover books. Hard covers are produced in batch sizes of 100 and soft covers are produced in batch sizes of 300. A hard cover book requires 0.75 hours of direct labor, while a soft cover book requires 0.25 hours. What is the overhead allocation to soft covers for printing

Answers

Answer:

Bing Book Bindery

The overhead allocation to soft covers for printing is:

= $68,250.

Explanation:

a) Data and Calculations:

Activity Cost Pools  Overhead  Activity Driver        Number   Overhead

                                      Cost                                     Usage         Rates

Printing                       $91,000   Batches processed   400     $227.50

Binding                      $49,000   Direct labor hours      150     $326.67

Total                         $140,000

Overhead rates:

Printing = $227.50 ($91,000/400)

Binding = $326.67 ($49,000/150)

                                Hard Cover      Soft Cover          Total

Units produced            5,200            12,000                17,200

Batches                            100                 300                    400

Direct labor hours          0.75               0.25

Total direct labor hours 75 (0.75*100) 75 (0.25*300)     150

Overhead allocated to Soft Cover:

Printing = ($227.50 * 300) $68,250

Binding = ($326.67 * 75)     24,500

Total overhead =               $92,750

Overhead allocated to Harc Cover:

Printing = ($227.50 * 100) $22,750

Binding = ($326.67 * 75)     24,500

Total overhead =               $47,250

The current spot price of WTI Houston Crude Oil Futures, expiring in 1-year, is $43 (per bbl). You can contract storage cost for oil, for one year, at 2% (of the underlying spot price) on a continuously compounded basis. The risk-free rate is 0.5% per annum on a continuously compounded basis. If the current spot price for oil is $40.50, what is the implied convenience yield for this contract?

Answers

Answer:

-3.49%

Explanation:

Theoretical price (Ft) = $43

Current spot price (St) = $40.5

Storage cost (u) = 2%

Risk free rate (Rf) = 0.5%

T = 1 year

Let y = Convenience yield

Ft = St e^(Rf + u - y)T

43 = 40.5 e^(0.005 + 0.02 - y)

y = - 3.49%

Hence, convenience yield = -3.49%

Pension data for Fahy Transportation Inc. include the following: ($ in millions) Discount rate, 9% Expected return on plan assets, 12% Actual return on plan assets, 13% Projected benefit obligation, January 1 $ 550 Plan assets (fair value), January 1 500 Plan assets (fair value), December 31 560 Benefit payments to retirees, December 31 68 Required: Assuming cash contributions were made at the end of the year, what was the amount of those contributions

Answers

Answer:

the amount of those contributions is $63 million

Explanation:

The computation of the amount of those contributions is shown below:

Plan assets, end of year $560

Less: Plan assets, Starting of the year -$500  

Less: Actual return -$65 ($500 × 13%)

Add: Retiree benefits paid $68

Cash contributions $63 million

Hence, the amount of those contributions is $63 million

10. The assembly worker reached for an Allen wrench in the workplace, hesitating momentarily while searching for the correct size from the group of Allen wrenches lying there. Finding the correct size, she picked it up and positioned it into the hexagonal socket of a screw that had previously been hand-turned into a threaded hole in the work unit. She then twirled the Allen wrench handle with one continuous finger and wrist motion until the screw had been rotated seven turns. At this point she gripped the Allen wrench handle with her hand and tightened the screw the last quarter turn. Write a list of the therbligs that comprise this motion sequence and label each basic motion with a brief description.

Answers

Answer:

Explanation:

The list can be seen below.

Sequ    Therblig     Therblig                 Description

ence     symbol       name

1          TE       Transport empty   [tex]\text{Reach for the Allen wrench in the workplace}[/tex]

2          St         select                   [tex]\text{ Select the correct size}[/tex]

3          G         Grasp                   [tex]\text {Grasp the Allen wrench}[/tex]

4          TL       Transport loaded  [tex]\text{Pick up and move Allen wrench toward screw}[/tex]

5          P         Position                [tex]\text{Position Allen wrench into hexogonal socket}[/tex]

6          RL       Release               [tex]\text{Release grip on Allen wrench}[/tex]

7          TE       Transport Empty [tex]\text{Move wrist and finger in preparation for turning}[/tex]

8           U         Use                    [tex]\text{Twirl Allen wrench with one continuous motion}[/tex]

9           TE       Transport empty [tex]\text{Reposition wrist and hand}[/tex]

10          G         Grasp                 [tex]\text{Grip Allen wrench in preparation for tightening}[/tex]

11           U          Use                  [tex]\text{Tighten screw with Allen wrench}[/tex]

Based on the segment income statement below, Chips, Inc. is considering eliminating its Barbecue Division line. Revenue from Barbecue Division sales $ 528,000 Salaries for Barbecue Division workers (128,000 ) Direct material (342,000 ) Sunk costs (equipment depreciation) (82,000 ) Allocated company-wide facility-sustaining costs (64,000 ) Net loss $ (88,000 ) If the Division is eliminated, what is the total amount of avoidable cost?

Answers

Answer:

$470,000

Explanation:

Calculation to determine the total amount of avoidable cost

Salaries for Barbecue Division workers $128,000

Add Direct material $342,000

Avoidable Cost $470,000

($128,000+$342,000)

Therefore the total amount of avoidable cost will be $470,000

Select the correct statement below regarding Manufacturing Overhead: Multiple Choice Manufacturing overhead is always an estimated cost. Manufacturing overhead is a clearing account and is neither shown on the balance sheet or income statement in published financial statements. Manufacturing overhead is an inventory account that is shown on the balance sheet. Manufacturing overhead is an expense account for all factory costs that are neither direct materials or direct labor.

Answers

Answer:

D) Expense account for all factory costs, except direct material or labour

Explanation:

Manufacturing Overhead refers to indirect costs, incurred during the process of production. This is charged as cost - to the units produced, during a reporting period. Example : Depreciation of asset, cost of asset is spread to all the useful years (& corresponding period output)

Blake doesn't much care about cars but is engaging in a substantial amount of information search about cars since he is about to buy a new car. In terms of involvement, Blake is Multiple Choice high in product involvement; low in purchase involvement. low in product involvement; low in purchase involvement. high in product involvement; high in purchase involvement. low in product involvement; high in purchase involvement. high in value-expressive involvement; low in product involvement.

Answers

Answer:

The answer "low in product involvement; high in purchase involvement".

Explanation:

In this question, Blake doesn't care a great deal about vehicles and is looking for something like a lot of information about cars when he's about to install a separate vehicle. Blake's involvement throughout the product is low; he is quite involved in purchasing because Low-involvement products were normally inexpensive, so if the customer makes an error by purchasing these they present a low risk. This same customer is related to excessive participation products if their fail, are complex, and are due to greater sticker prices. Somewhere in the middle of minimal participation products were falling.

Umatilla Bank and Trust is considering giving Sandhill Co. a loan. Before doing so, it decides that further discussions with Sandhills accounting may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $269,380. Discussions with the accountant reveal the following.
1. Sandhill shipped goods costing $55,680 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
2. The physical count of the inventory did not include goods costing $100,770 that were shipped to Sandhill FOB destination on December 27 and were still in transit at year-end.
3. Sandhill received goods costing $24,220 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count.
4. Sandhill shipped goods costing $53,270 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Sandhill physical inventory.
5. Sandhill received goods costing $40,510 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $269,380.
Determine the correct inventory amount on December 31.

Answers

Answer:

$306,360

Explanation:

Calculation to Determine the correct inventory amount on December 31.

Correct inventory amount on December 31=$269,380+$24,220+$53,270-$40,510

Correct inventory amount on December 31=$306,360

Therefore the Correct inventory amount on December 31 is $306,360

Select the correct answer.
In general, how long does it take to accomplish a long-term goal?
OA.
a few days to a week
OB.
a few weeks to a month
OC.
a few months to a year
OD.
more than a year

Answers

C or d sorry if wrong

The following trial balance of Sarasota Traveler Corporation does not balance.
Sarasota Traveler Corporation
Trial Balance
April 30, 2020
Debit Credit
Cash $6,212
Accounts Receivable 5,390
Supplies 3,117
Equipment 6,250
Accounts Payable $7,194
Common Stock 8,150
Retained Earnings 2,150
Service Revenue 5,350
Office Expense 4,470 0
$25,439 $22,844
An examination of the ledger shows these errors.
1. Cash received from a customer on account was recorded (both debit and credit) as $1,730 instead of $2,000.
2. The purchase on account of a computer costing $3,339 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3. Services were performed on account for a client, $2,400, for which Accounts Receivable was debited $2,400 and Service Revenue was credited $375.
4. A payment of $245 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5. The Service Revenue account was totaled at $5,350 instead of $5,430.
InstructionsFrom this information prepare a corrected trial balance.

Answers

Answer:

Sarasota Traveler Corporation

Trial Balance as at April 30, 2020

Debit Credit

Cash $6,212

Accounts Receivable 5,390

Supplies 3,117

Equipment 6,250

Accounts Payable $7,194

Common Stock 8,150

Retained Earnings 2,150

Service Revenue 5,350

Office Expense 4,470 0

Explanation:

First prepare correcting journals. Then adjust the ledger accounts using the journals prepared

Journals

Item 1

Debit : Cash $270

Credit : Accounts Payable $270

Item 2

Debit : Computer $3,339

Credit : Office Expense $3,339

Item 3

Debit : Suspense $2,025

Credit : Service Revenue $2,025

A college student has been looking for a new tires. The student feels that the warranty period is a good estimate of the tire life and that 10% interest rate is appropriate. Given 4 options find the minimum Equivalent Uniform Monthly Cost. (Note: the student wants to buy 4 tires)
Warranty time (months) | Tire price (all 4 tires)
12 | 31
24 | 51
36 | 69
48 | 94

Answers

Answer:

The minimum Equivalent Uniform Monthly Cost = $2.2264

Explanation:

To find the Equivalent Uniform Monthly Cost: EUAC = P(A/P,I,N)

Where i = 10% => 10% / 12 =

N = 12 , 24 , 36 & 48 months

12 months Warranty time = 31(A/P,10%/12,12)

12 months Warranty time = 31 * 0.0879

12 months Warranty time = $2.7254

24 months Warranty time =51(A/P,10%/12,24)

24 months Warranty time = 51 * 0.0461

24 months Warranty time = $2.3534

36 months Warranty time = 69(A/P,10%/12,36)

36 months Warranty time = 69 * 0.0323

36 months Warranty time = $2.2264

48 months Warranty time =94(A/P,10%/12,48)

48 months Warranty time = 94 * 0.0254

48 months Warranty time = $2.3841

In supply and demand theory, an increase in consumer income for a normal good will: A. Shift the demand curve in and to the left, lowering the equilibrium price but raising the equilibrium quantity. B. Shift the demand curve out and to the right, raising the equilibrium price and quantity. C. Shift the supply curve out and to the right, lowering the equilibrium price but raising the equilibrium quantity. D. Shift the supply curve in and to the left, lowering the equilibrium price and quantity. E. Shift the demand curve out and to the right, lowering the equilibrium price but raising the equilibrium quantity.

Answers

Answer:

b

Explanation:

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

If income increases, demand increases. the demand curve shifts to the right. This leads to an increase in equilibrium price and quantity

Vaughn uses the periodic inventory system. For the current month, the beginning inventory consisted of 7200 units that cost $14.00 each. During the month, the company made two purchases: 3000 units at $15.00 each and 12200 units at $15.50 each. Vaughn also sold 13100 units during the month. Using the FIFO method, what is the ending inventory?

Answers

Answer:

Ending inventory= $144,150

Explanation:

Giving the following information:

Beginning inventory consisted of 7200 units that cost $14.00 each.

Purchase:

3000 units at $15.00 each

12,200 units at $15.50 each.

Vaughn also sold 13,100 units during the month.

To calculate the ending inventory using the FIFO (first-in, first-out) method, we need to use the cost of the lasts units incorporated into inventory:

Ending inventory= 9,300*15.5

Ending inventory= $144,150

Following are the accounts and balances from the adjusted trial balance of Stark Company. Notes payable $ 11,000 Accumulated depreciation-Buildings $ 15,000 Prepaid insurance 2,500 Accounts receivable 4,000 Interest expense 500 Utilities expense 1,300 Accounts payable 1,500 Interest payable 100 Wages payable 400 Unearned revenue 800 Cash 10,000 Supplies expense 200 Wages expense 7,500 Buildings 40,000 Insurance expense 1,800 Stark, Withdrawals 3,000 Stark, Capital 24,800 Depreciation expense-Buildings 2,000 Services revenue 20,000 Supplies 800 Prepare the (1) income statement and (2) statement of owner's equity for the year ended December 31, and (3) balance sheet at December 31. The Stark, Capital account balance was $24,800 on December 31 of the prior year.

Answers

Answer:

                    STARK COMPANY

                  INCOME STATEMENT

      FOR THE YEAR ENDED DECEMBER 31

PARTICULARS                          AMOUNT$

Service Revenue                           20,000

Less-Expenses

Supplies expense           200

Interest expense             500

Insurance expense         1800

Utilities expense             1300

Depreciation expense    2000

Wages expense              7500

Total expenses                              13,300

Net profit                                       $6,700

                              STARK COMPANY

                  STATEMENT OF RETAINED EARNINGS

FOR THE YEAR ENDED DECEMBER 31                       Amount$

Retained earnings December 31 prior year end            14,800

Add- Net income                                                               6,700

Less- Dividends                                                                 3,000

Retained earnings, December 31 Current year end   $18,500

What are human resources that can help you save for a house? What are nonhuman resources that can help you save for a house?

Answers

Answer:

Using cash money for the downpayment is the human resource and maintaining a good credit score is the nonhuman resource.

On December 31, 2020, Swifty Corporation sold for $152000 an old machine having an original cost of $265000 and a book value of $113000. The terms of the sale were as follows: $39000 down payment $56500 payable on December 31 each of the next two years The agreement of sale made no mention of interest; however, 8% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2020 rounded to the nearest dollar

Answers

Answer:

the amount of the note receivable net of the unamortized discount is $100,754

Explanation:

The computation of the amount of the note receivable net of the unamortized discount is shown below:

= $56,500 × present value of an ordinary annuity for 2 years at 8%

= $56,500 ×  1.783265

= $100,754

hence, the amount of the note receivable net of the unamortized discount is $100,754

Variable production costs Plastic for casing $ 171,500 Wages of assembly workers 490,000 Drum stands 215,600 Variable selling costs Sales commissions 161,700 Fixed manufacturing costs Taxes on factory 6,000 Factory maintenance 12,000 Factory machinery depreciation 72,000 Fixed selling and administrative costs Lease of equipment for sales staff 12,000 Accounting staff salaries 62,000 Administrative management salaries 142,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute its contribution margin per unit and its contribution margin ratio. 3. For each dollar of sales, how much is left to cover fixed costs and contribute to operating income

Answers

Answer:

Part 1.

Contribution margin income statement for the year.

Sales (4,900 x 340)                                                        1,666,000

Less Variable Costs

Plastic for casing                                        171,500

Wages of assembly workers                   490,000

Drum stands                                              215,600

Sales commissions                                    161,700       (1,038,800)

Contribution                                                                      627,200

Less Fixed Costs

Taxes on factory                                          6,000

Factory maintenance                                 12,000

Factory machinery depreciation               72,000

Lease of equipment for sales staff           12,000

Accounting staff salaries                           62,000

Administrative management salaries      142,000       (306,000)

Net Income                                                                      321,200

Part 2.

Contribution margin per unit = $627,200 / 4,900  = $128.00

Contribution margin ratio =  $627,200/ $1,666,000 = 37.65 %

Explanation:

The Contribution Margin Income Statement calculates separately the contribution and net income as shown above.

You plan to purchase a $340,000 house using either a 25-year mortgage obtained from your local savings bank with a rate of 8.10 percent, or a 10-year mortgage with a rate of 7.10 percent. You will make a down payment of 20 percent of the purchase price.
a. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in interest paid?
b. Calculate your monthly payments on the two mortgages. What is the difference in the monthly payment on the two mortgages?

Answers

Answer:

a. Interest under 10 year mortgage = CUMIPMT(7.1%/12, 10*12, 340000*80%, 1, 10*12, 0)

Interest under 10 year mortgage = 108662.44

Interest under 25 year mortgage = CUMIPMT(8.1%/12, 10*12, 340000*80%, 1, 25*12, 0)

Interest under 25 year mortgage = 363217.16

Difference in interest = 363217.16 - 108662.44

Difference in interest = 254554.72

b. Monthly payment under 10 year = PMT(7.1%/12, 10*12, 340000*80%)

Monthly payment under 10 year = 3172.19

Monthly payment under 25 year = PMT(8.1%/12, 25*12, 340000*80%)

Monthly payment under 25 year = 2117.39

Difference in the monthly payment = 3172.19 - 2117.39

Difference in the monthly payment = 1054.80

Partial income statements for Sherwood Company summarized for a four-year period show the following: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction.2-b. Does the pattern of gross profit percentages lend confidence to your corrected amounts? 29,000.

Answers

Answer:

1. The corrected gross profit are as follows:

2015 = $704,000

2016 = $836,000

2017 = $859,000

2018 = $1,024,000

2-a  Gross profit percentage before and after correction are as follows:  

Particulars                2015     2016       2017      2018

Before correction      32%       33%        31%        32%

After correction         32%       32%        32%        32%

2-b. Yes. This is because the gross profit percentage for the years are approximately the same at 32% after the correction was made.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Partial income statements for Sherwood Company summarized for a four-year period show the following:

                          2015             2016                  2017                  2018

Net Sales     $2,200,000   $2,600,000    $2,700,000      $3,200,000

COGS             1,496,000        1,742,00        1,863,000         2,176,000

Gross Profit     $704,000       $858,000      $837,000       $1,024,000

An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $22.000. The inventory balance on December 31, 2017, was accurately stated. The company uses a periodic inventory system.

Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error, 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction 2-b. Does the pattern of gross profit percentages lend confidence to your corrected amounts?

The explanation of the answer is now given as follows:

1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error

Note: See the attached excel file for the fixing the inventory error and the restated partial income statements to reflect the correct amounts, after fixing the inventory error.

The effect of the overstatement of closing inventory is reducing the 2016 cost of goods sold. To correct this in the attached excel file, the opening balance is reduced by $22,000 and this makes cost of goods sold of 2016 to increase and the cost of goods sold of 2017 to decrease by $22,000.

2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction

Note: See the attached excel file for the computed the gross profit percentage for each year (a) before the correction and (b) after the correction.

In the attached excel file, the following formula is used:

Gross Profit percentage = Gross profit / Net Sales) * 100

2-b. Does the pattern of gross profit percentages lend confidence to your corrected amounts?

Yes. This is because the gross profit percentage for the years are approximately the same at 32% after the correction was made.

[The following information applies to the questions displayed below.] Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $152,070). $ 275,000 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $800). 1,600 c. Sold merchandise (costing $9,000) to a customer on account with terms n/30. 20,000 d. Collected half of the balance owed by the customer in (c). 10,000 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1,800 Compute the gross profit percentage. (Round your answer to 1 decimal place.)

Answers

Answer: 45%

Explanation:

First calculate the sales:

= Cash sales + credit sale

= 275,000 + 20,000

= $295,000

Terms on credit sale was 2/10 n/30 and they paid half in time($10,000) but a partial allowance of $1,800 was granted:

Net sales would be:

= Sales - sales returns - sales discount

= 295,000 - 1,600 - (10,000 * 2%) - 1,800

= $291,400

COGS = 152,070 + 9,000 - 800

= $160,270

Gross profit percentage = (Sales - Cost of goods sold) / Sales

= (291,400 - 160,270) / 291,400 * 100%

= 45%

Cordova, Inc., reported the following receivables in its December 31, 2020, year-end balance sheet:
Current assets:
Accounts receivable, net of $45,000 in allowance for
uncollectible accounts $ 377,000
Interest receivable 15,000
Notes receivable 350,000
Additional information:
The notes receivable account consists of two notes, a $120,000 note and a $230,000 note. The $120,000 note is dated October 31, 2020, with principal and interest payable on October 31, 2021. The $230,000 note is dated March 31, 2020, with principal and 8% interest payable on March 31, 2021.
During 2021, sales revenue totaled $2,050,000, $1,910,000 cash was collected from customers, and $34,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end gross accounts receivable.
Required:
1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Cordova’s 2021 income statement?
2. Calculate the receivables turnover ratio for 2021. (Round your answer to 2 decimal places.)
1. Interest revenue
Bad debt expense
2. Accounts receivable turnover ratio

Answers

Answer:

Cordova, Inc.

1. Bad Debt Expense account of $41,800 will also appear in Cordova's 2021 income statement.

2. Receivables Turnover ratio = 4.32

Explanation:

a) Data and Calculations:

Partial Balance Sheet of Cordova, Inc.:

Current assets:

Accounts receivable, net of $45,000 in allowance for

uncollectible accounts $ 377,000

Interest receivable             15,000

Notes receivable            350,000

Notes Receivable:

Dated October 31, 2020, payable October 31, 2021 = $120,000

Dated March 31, 2020, payable March 31, 2021 =         230,000 (8%)

Total Notes Receivable = $350,000

Accounts receivable:

Beginning balance $422,000

Sales Revenue =   2,050,000

Cash collections     1,910,000

Bad Debts w/off         34,000

Ending balance =  $528,000

Allowance for Uncollectible accounts:

Beginning balance   $45,000

Bad debts w/off         (34,000)

Bad debts expense     41,800

Ending balance         (52,800)

Receivables Turnover ratio = Sales Revenue/Average Receivables

= $2,050,000/$475,000

= 4.32

Average Receivables = ($422,000 + $528,000)/2 = $475,000

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