Answer:
The answer is A. cash and short-term investments by daily cash operating expenses
Explanation:
This is calculated as follows:
cash and short-term investments(cash equivalents) ÷ daily cash operating expenses.
Cash equivalents are very short-term securities. They are very liquid and can be converted to cash very quickly. Examples are bank accounts short-term securities like treasury bills.
Days cash on hand is the number of days that a firm can afford to pay its operating expenses, given the amount of cash available.
Home Depot entered fiscal 2014 with a total capitalization of $27,213 million. In 2014, debt investors received interest income of $830 million. Net income to shareholders was $6,345 million. (Assume a tax rate of 35%.) Calculate the economic value added assuming its cost of capital is 10%.
Answer:
Economic value added=$4,163.20
Explanation:
Calculatation for the economic value added assuming its cost of capital is 10 percent
The first step is to find the After-tax operating income using this formula
After-tax operating income = (1 - tax rate) * Interest expense + Net income
Where,
Tax rate=35%
Interest expense =$830
Net income=$6,345
Let plug in the formula
After-tax operating income=(1 - .35) *$830 + $6,345
After-tax operating income=0.65*$830×$6,345
After-tax operating income= $539.50+$6,345
After-tax operating income=$6,884.50
The next step is to find the Economic value added using this formula
Economic value added= Ater-tax operating income - (Cost of capital * Total capitalization)
Where,
Ater-tax operating income =$6,884.50
Cost of capital =10%
Total capitalization=$27,213
Let plug in the formula
Economic value added=$6,884.50 - (.10 * $27,213)
Economic value added=$6,884.50-$2,721.3
Economic value added=$4,163.20
Therefore the Economic value added assuming its cost of capital is 10% will be $4,163.20
The company can manufacture either two food processors per machine hour or three espresso machines per machine hour. The company's production capacity is 1,200 machine hours per month. What is the contribution margin per machine hour for food processors?
Answer:
The contribution margin per machine hour is $150.
Explanation:
Note: The missing part of the question is
Food Processor Espresso Machines
Sales price $125 $225
Variable costs $50 $150
Solution
Contribution Margin per Machine = Sales Price - Variable Cost
=$125 - $50
=$75
Contribution Margin = Contribution per Machine × Number of Machines Produced in 1 Machine Hour
= $75 * 2
= $150
Thus, the contribution margin per machine hour for food processors is $150.
During the year, the Senbet Discount Tire Company had gross sales of $1.24 million. The company’s cost of goods sold and selling expenses were $593,000 and $246,000, respectively. The company also had notes payable of $850,000. These notes carried an interest rate of 5 percent. Depreciation was $123,000. The tax rate was 23 percent. a. What was the company’s net income? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.) b. What was the company’s operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
Answer:
Net income= $139,755
Operating cash flow= $346,835
Explanation:
Senbet discount tire company has a gross sale of $1.24 million
The cost of goods sold is $593,000
The selling expense is $246,000
The company has a note payable of $850,000 with an interest rate of 5%
Depreciation is $123,000
Tax rate is 23%
(a) Inorder to calculate the tax expense the first step is to find the interest
Interest= debt×interest rate
= $850,000×5/100
= 850,000×0.05
= 42,500
Therefore, the net income can be calculated as follows
= (sales-cost of goods sold-selling expense-depreciation-interest)(1-tax rate)
=( $593,000-$246,000-$123,000-42,500)(1-0.23)
= 181,500×0.77
= $139,755
(b) Inorder to calculate the operating cash flow the first step is to find the tax expense
Tax expense= (gross sales-cost of goods sold-selling expense-depreciation-interest)× tax
($1,240,000-$593,000-$246,000-$123,000-42,500)×0.23
= $235,500×0.23
= $54,165
Therefore, the operating cash flow can be calculated as follows
= gross sales-cost of goods sold-selling expense-depreciation-tax expense+depreciation
=$1,240,000-$593,000-$246,000-$123,000-$54,165+$123,000
= $346,835
Hence the net income is $139,755 and the operating cash flow is $346,835
At December 31, 2020 Sunland Company had 200000 shares of common stock and 10600 shares of 7%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2020 or 2021. On February 10, 2022, prior to the issuance of its financial statements for the year ended December 31, 2021, Sunland declared a 100% stock dividend on its common stock. Net income for 2021 was $960000. In its 2021 financial statements, Sunland’s 2021 earnings per common share should be:___________$4.47.$4.20.$2.21.$1.29.
Answer:
$2.21
Explanation:
For the computation of earnings per common share first we need to find out the preferred dividend and shares outstanding which is shown below:-
Preferred dividend = Common stock × 100 × Given percentage
= 10,600 × 100 × 7%
= 74,200
Share outstanding = Shares × 2
= 200,000 × 2
= 4,000,000
Earning per share = (Net income - Preferred dividend) ÷ Share outstanding
= ($960,000 - 74,200) ÷ 400,000
= $2.21
Hence, we applied the above formulas
The vice-president of marketing of G Street Fabrics has been told to invest the company's advertising dollars wisely. Which of the following measures could be used to compare the cost of its advertising expenditures for different media?a. Reachb. Ratingc. GRPsd. CPMe. frequency
Answer: d. CPM
Explanation:
CPM is a acronym for cost per thousand impressions. This is a term that is utilized in advertising either by online advertising, traditional advertising media, and marketing that are related to web traffic and it
refers to cost of traditional advertising, email advertising or internet marketing campaigns whereby the advertisers will have to pay every time an advertisement is displayed.
It is a measurement of the amount of money a company will have to pay in order to get across to its listeners, viewers, readers, or visitors. Since the vice-president of marketing of G Street Fabrics has been told to invest the company's advertising dollars wisely, he can use the CPM.
Matthews Fender, which uses a standard cost system, manufactured 20 comma 000 boat fenders during 2018, using 143 comma 000 square feet of extruded vinyl purchased at $ 1.30 per square foot. Production required 400 direct labor hours that cost $ 16.00 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $ 1.35 per square foot. The labor standard was 0.028 direct labor hour per fender, at a standard cost of $ 15.00 per hour. Complete the costs and efficiency variances for Direct materials and direct labor. Does the pattern of variances suggest Pro Fender's managers have been making trade-offs? Explain.
Answer:
Its hard to ans
Explanation:
A stock has a beta of 1.29 and an expected return of 11.57 percent. If the risk-free rate is 4.4 percent, what is the stock's reward-to-risk ratio
Answer:
5.56%
Explanation:
the reward to risk ratio of this stock is:
reward to risk = (expected return - risk free rate) / beta
reward to risk = (11.57% - 4.4%) / 1.29 = 5.56%
The reward to risk ratio shows the investors how much extra money they should expect to earn for every dollar that they invest in a certain stock due to the stock's risk. A stock with a beta of 1 only carries the market risk, but since this stock's beta is 1.29, its risk is higher.
On December 31, Strike Company has decided to discard one of its batting cages. The initial cost of the equipment was $219,818.00 with an accumulated depreciation of $197,836.20. Depreciation has been taken up to the end of the year. The following will be included in the entry to record the disposal.
Select the correct answer.
Equipment Cr. $219,818.00
Loss on Disposal of Asset Dr. $197,836.20
Accumulated Depreciation Dr. $219,818.00
Gain on Disposal of Asset Cr. $21,981.80
\Answer:
Equipment Cr. $219818.00 is the correct answer.
Explanation:
The asset costed $219818 and when an asset is disposed off, it is written off from the books and its account is closed. The cost of asset is credited in the asset account. Thus, $219818.00 will be credited.
The amount of sales proceed is unknown so we cannot determine if the asset was sold for a loss or gain. Thu option b and d cannot be the right answer.
The amount of accumulated depreciation is given till year end as $197836.20 and this amount will be debited in the correct entry. Thus option c is incorrect.
A customer owns 400 shares of ABC stock. ABC is having a rights offering where 20 rights are needed to subscribe to 1 new share. How many new shares can the customer purchase through this rights offering
Answer:
20 new stocks
Explanation:
each stockholder should receive 1 right for every stock that he/she owns, so this particular investor owns 400 rights. Since he/she needs 20 rights to subscribe to 1 new stock, then the total number of stocks that he/she can buy = 400 / 20 = 20.
Many corporations hand out preemptive rights to their stockholders, which means that whenever new stocks are issued, they will be able to purchase them before any outside investor does.
Classify the following markets as perfectly competitive, monopolistic, or monopolistically competitive, and explain your answers.
Wooden no. 2 pencils
Copper (hint: there are many sellers)
Local public utilities (ex. water, electricity)
Peanut butter
Lipstick
Answer:
Wooden no. 2 pencils
Perfectly competitive market because there are many buyers and suppliers of pencils. Also, wooden no. 2 pencils are basically identical no matter which brand you purchase.Copper (hint: there are many sellers)
Copper is considered a commodity which has many suppliers and consumers around the world, therefore, it is classified as a perfectly competitive market. No individual supplier, nor any individual consumer has enough market power to affect the price and supply of copper.Local public utilities (ex. water, electricity)
Monopolistic market because there are generally only one supplier of each type of public utilities, e.g. one water company per city.Peanut butter
Monopolistically competitive markets since there are many consumers and suppliers, but each supplier produces a slightly different product. Even though there are several peanut butter brands, no two brands offer the same peanut butter.Lipstick
Monopolistically competitive markets since there are many consumers and suppliers, but each supplier produces a slightly different product. Even though there are several lipstick brands, no two brands offer the same lipstick.In this way, it should be classified.
Learn more: brainly.com/question/6201432
DSO and accounts receivable Ingraham Inc. currently has $205,000 in accounts receivable, and its days sales outstanding is 71 days. It wants to reduce its DSO to 20 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365- day year.
Answer:
$49,084.51
Explanation:
days of sales outstanding (DSO) = accounts receivable / average daily sales
71 days = $205,000 / (total sales / 365 days)
total sales / 365 days = $205,000 / 71 days
total sales = ($205,000 / 71 days) x 365 days = $1,053,873.24
after the change, annual sales will decrease by 15%:
$1,053,873.24 x (1 - 15%) = $895,792.25
average sales per day = $895,792.25 / 365 = $2,454.23 per day
new DSO = accounts receivable / average sales per day
20 days = accounts receivable / $2,454.23 per day
accounts receivable = $2,454.23 per day x 20 days = $49,084.51
There are zero coupon bonds outstanding that have a YTM of 5.97 percent and mature in 19 years. The bonds have a par value of $10,000. If we assume semiannual compounding, what is the price of the bonds
Answer:
market price = $1,104.20
Explanation:
yield to maturity of zero coupon bonds = (face value / market price)¹/ⁿ - 1
YTM = 5.97%n = 19 x 2 = 38face value = $10,000(face value / market price)¹/ⁿ = YTM + 1
face value / market price = (YTM + 1)ⁿ
market price = face value / (YTM + 1)ⁿ
market price = $10,000 / 1.0597³⁸ = $10,000 / 9.0563 = $1,104.20
Marin operates a manufacturing business, and this year the three-year-old van she used in the business was destroyed in a fire. The van was originally purchased for $23,000 and the adjusted basis was $5,425 at the time of the accident. Although the van was worth $6,300 at the time of accident, insurance only paid Marin $1,575 for the loss. What is the amount of Marin's casualty loss deduction
Answer: $3850
Explanation:
From the question, we are informed that Marin operates a manufacturing business, and this year the three-year-old van she used in the business was destroyed in a fire. We are further told that the van was originally bought for $23,000 and the adjusted basis was $5,425 at the time of the accident and that although the van was worth $6,300 at the time of accident, insurance only paid Marin $1,575 for the loss.
The amount of Marin's casualty loss deduction will be the difference between the adjusted basis and the amount paid to Marin by the insurance company for the loss. This will be:
= $5425 - $1575
= $3850
Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchases $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the payment on August 16 is:
Answer:
The journal entries for the whole transaction are:
August 7, 202x, merchandise purchased on account, terms 1/10, n/30
Dr Merchandise inventory 9,750
Cr Accounts payable 9,750
August 11, 202x, partial return of purchased merchandise
Dr Accounts payable 1,500
Cr Merchandise inventory 1,500
August 16, 202x, invoice is paid within discount period
Dr Accounts payable 8,250
Cr Cash 8,167.50
Cr Purchase discounts 82.50
Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 27.5% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price
Answer:
Price of stock today = $53.29
Explanation
The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.
This model would be applied as follows:
PV from year 1 to 3
Year Present Value ( PV)
1 1.25 × 1.275 × 1.1^(-1) = 1.4358
2 1.25 × 1.275^2 × 1.1^(-2) = 1.6492
3 1.25 × 1.275^3 × 1.1^(-3) = 1.894
Total 4.979
Year 4 and beyond
This will be done in two steps
Step 1
D× (1+g)/k-g
1.25 ×1.275^4/(0.11-0.06)
=66.066
Step 2
Present Value in year 0
=66.066 × 1.11^(-3) = 48.3068
Total present value = 4.979 + 48.306= 53.286
Price of stock today = $53.29
The rate established prior to the beginning of a period that uses estimated overhead and an allocation factor such as estimated direct labor, and that is used to assign overhead cost to jobs, is the:
Answer:
This is the Predetermined overhead rate
Explanation:
The predetermined overhead rate assigns a particular amount of manufacturing overhead to each direct labor or machine hour. This helps businesses allocate resources and also set pricing. This computation is usually done at the beginning of each period.
To calculate this, we divide the estimate of the manufacturing overhead cost total by the estimated number of machine hours. It is used to assign overhead cost to jobs.
There are several bridges along highway 280 which are free to ride on. This bridge was built and is being maintained by the government... not the "free" market. Let's think about why that is the case... The economic logic of government ownership and having a marginal price of 0 (that is, it is free to cross the bridge) is:
Answer:
The bridge 's owner has a natural monopoly, and the marginal production cost (letting another car drive through it) is close to nil.
Explanation:
Since building several bridges to compete is inefficient, but building one bridge at a lower average cost to customers would be effective. If the private monopolist builds the bridge it can charge customers exceptionally high prices.
There is a high fixed cost involved with constructing a bridge. Hence constructing a bridge is a mere privilege. Furthermore, there is no extra cost to allow another car to cross the bridge. It means that the marginal cost is zero or closer.
You often find that employees choose a health care plan without carefully considering their options. In fact, sometimes employees realize they are spending too much for health care or that they lack health care options, and they end up blaming you for not informing them sufficiently of their options ahead of time. You want employees to attend the fair and take the time to carefully weigh their options. Which of the following statements is most likely to attract employees to the fair to do so?
A. This presentation helps you choose which of the five health insurance options works best for your family.
B. This presentation discusses the relative benefits and costs of each health care option.
C. In this presentation, we provide you with the answers you need about the five health insurance options.
Answer: This presentation helps you choose which of the five health insurance options works best for your family.
Explanation:
From the question, we are informed that employees usually choose a health care plan without carefully considering their options and they end up blaming someone else for not informing them sufficiently of their options ahead of time.
Due to this reason, the person want the employees to attend a fair and take the time to carefully weigh their options. Of the options given, the correct answer is that "this presentation helps you choose which of the five health insurance options works best for your family".
Emphasis is been placed on choice as the employees can choose what works best for them. A simple language is also used to pass the message across.
When an organization has an annual ceremony to reward the past year’s outstanding employees, this ritual is a manifestation of the organization's culture called a(n) _______. Group of answer choices
Answer:
Espoused value.
Explanation:
The espoused value can be defined as the values expressed on behalf of the organization. For example, the set of practices and procedures adopted by employees of an organization that provide positive results and value for a company.
Therefore, when an organization holds a ceremony to reward outstanding employees of the year, it is manifesting and promoting in the organizational culture the maintenance of moral conduct and corporate values necessary to maintain and enhance positive standards of conduct to achieve organizational success .
Suppose that a baseball player eligible for free agent status signs a contract with a new team that promises to pay him $100,000 more than his current team for each of the next three years. Assuming the discount rate is 6 percent, what is the maximum the current costs of moving could be and still have this investment be worthwhile?
Answer:
Maximum current cost = $267,301.19
Explanation:
The maximum current costs of his moving would be worth of the $100,000 annuity in today's dollars, that is the present value.
The present value of the annuity would be determined as follows:
PV = A × (1- (1+r)^(-n) )/ r
Annual cash flow, n- number of years, r-rate of interest
A- 100,000, r- 6%, n- 3
PV - 100,000 × (1- 1.06^(-3))/0.06
PV = $ 267,301.19
Maximum current cost = $267,301.19
The overall economic performance of developing countries is expected to outpace that of the United States over the coming years. A customer that wishes to profit from this should receive which recommendation and accompanying risk disclosures?
A.
The customer should be recommended a special situations fund, as long as the customer is willing to assume regulatory risk and market risk
B.
The customer should be recommended a specialty fund, as long as the customer is willing to assume credit risk and extension risk
C.
The customer should be recommended an emerging markets fund, as long as the customer is willing to assume political risk and exchange rate risk
D.
The customer should be recommended a sector fund, as long as the customer is willing to assume unsystematic risk and market risk
Answer: C. The customer should be recommended an emerging markets fund, as long as the customer is willing to assume political risk and exchange rate risk
Explanation:
In order to take advantage of the opportunity that presents itself from developing countries outpacing that of the US in years to come, the customer should invest in an Emerging Markets fund. This fund invests in securities from the more rapidly developing countries like China and Brazil so the customer will be poised to take advantage of the opportunities offered by this.
However, they should be wary of Exchange rate risks as their currencies are not as strong as the US dollar and can be unstable.
They also need to worry about political instability as quite a lot of developing countries do not have strong democracies and Economic decisions are influenced by political decisions a bit too much.
Celia Inc. has two types of handbags: Standard and custom. The Controller has decided to use a plant-wide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used Two activity cost pools were developed: Machining and Machine set-up. Presented below is information related to the company's operations
Standard Custom
Direct Labor cost 60,000 $ 12,000
Machine Hours 1,500 1,500
Set-up Hours 100 500
Total estimated overhead cost are $342,000. Overhead cost allocated to the machining activity cost pool is $222,000 and $120,000 is allocated to the machine set-up activity cost pool
1. Calculate overhead allocated to each product using the traditional (Plant-wide) approach
2. Calculate overhead allocated to each product using the activity based costing approach
Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard Custom
Direct Labor cost 60,000 $ 12,000
Machine Hours 1,500 1,500
Set-up Hours 100 500
The total estimated overhead costs are $342,000.
A. First, we need to calculate the predetermined overhead rate:
Total direct labor cost= $72,000
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 342,000/72,000
Predetermined manufacturing overhead rate= $4.75 per direct labor dollar
Standard= 4.75*60,000= $285,000
Custom= 4.75*12,000= $57,000
B. Now, we need to calculate a predetermined overhead rate for each activity:
Machining:
Total machine-hours= 3,000
Total overhead= 222,000
predetermined overhead rate= 222,000/3,000
predetermined overhead rate= $74 per machine-hour
Setup:
Total set-up hours= 600
Total overhead= 120,000
predetermined overhead rate= 120,000/600
predetermined overhead rate= $200 per set up-hour
Standard= 74*1,500 + 200*100= $131,000
Custom= 74*1,500 + 200*500= $211,000
The previous value of a portfolio that must be regained before a hedge fund can charge their investors performance fees is known as a
Answer:
high watermark
Explanation:
A high watermark refers to the mark at which the investment could be reached at a high peak. It to be calculated on that date when the performance fees are charged and it could be charged only on that case when there is a rise in the value of the portfolio
Moreover, in the high watermarks there is no need to pay the performance based fee when there is a poor performance
Therefore the given situation represent the high watermark
A dummy user at Universal Containers owns more that 10,000 lead records. The system assigned all these leads to a dummy user. This is causing performance issues whenever role hierarchy changes. Which two options should be recommended to improve performance
Answer:
The situation described in the question is referred to as:
Condition Ownership Data Skew.
When designing record access for enterprise-scale, it would be a mistake to assign a role to a dummy user.
To correct the above problem, It is advisable to distribute the ownership of records across a large number of users.
This ususally has the effect of decreasing the chance of occurrence of long-running updates.
Cheers!
On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 24,000, $15 par, common shares. The market price of the common stock is $44 on this date.
Requried:
a. Record the necessary journal entries assuming a small (10%) stock dividend
b. Record the stock dividend assuming a small (10%) stock dividend.
c. Record the stock dividend assuming a large (100%) stock dividend.
d. Record the stock dividend assuming a 2-for-1 stock split.
Answer:
September 01
Dr Stock dividends 105,600
Cr Common stock 36,000
Cr Additional paidin capital 69,600
September 01
Dr Stock dividends 360,000
Cr Common stock 360,000
September 01 No journal entry
Explanation:
1. 2. & 3. Preparation to Record the journal entries assuming a small (10%) stock dividend
September 1: Stock dividends (24,000 × 10% × $44) = 105,600
September 1: Common stock (24,000 × 10% × $15) = $36,000
1. 2. & 3. Prepartion to Record the journal entries assuming a small (100%) stock dividend,
September 1: Stock dividends (24,000 shares × $15×100%) =$360,000
To Record the stock dividend assuming a 2-for-1 stock split.
No journal entry required
Hence,
Colorado Outfitters, Inc. Journal entries
September 01
Dr Stock dividends 105,600
Cr Common stock 36,000
Cr Additional paidin capital 69,600
(105,600-36,000)
September 01
Dr Stock dividends 360,000
Cr Common stock 360,000
September 01 No journal entry
Which of the following are restrictive covenants often used to protect the firm’s bond value and bondholder wealth? Check all that apply. Provisions that require firing the firm’s CEO whenever the firm’s bond price decreases by more than 15% Provisions that prohibit reducing the firm’s liquidity ratio below specified levels Provisions that prohibit the borrower from increasing debt ratios above specified levels Provisions that require issuing new debt securities whenever interest rates drop below 5%
Answer:
1. Provisions that prohibit reducing the firm’s liquidity ratio below specified levels.
2. Provisions that prohibit the borrower from increasing debt ratios above specified levels.
Explanation:
A bond refers to a fixed income instrument that signifies the indebtedness of the borrower to the bond issuer (investor or creditor). Basically, they are loans that are given to government or large corporations.
This simply means that, when a bondholder or creditor purchases a bond, an agreed amount of money is being borrowed to the bond issuer as a loan. As a result of the loan being borrowed, the bond issuer is required to pay an interest with a return of principal at maturity to the bondholder (investor or creditor).
A bond covenant can be defined as a standard and legally binding agreement between an investor or creditor (bondholder) and the issuer of a bond (bond issuer) in order to protect their respective interests. The bond covenant is classified into two (2) categories;
1. Positive or affirmative covenants: which states certain requirements that must be met by the bond issuer.
2. Negative or restrictive covenants: which states certain actions that are forbidden to the bond issuer.
The following are restrictive covenants often used to protect the firm’s bond value and bondholder wealth;
1. Provisions that prohibit reducing the firm’s liquidity ratio below specified levels.
2. Provisions that prohibit the borrower from increasing debt ratios above specified levels.
The restrictive covenants are written directly in the trust indenture or bond deed. Also note, the more the restrictive covenants that exists in a bond, the lower its interest rate because it makes the bond appear safer.
The Allowance for Bad Debts account had a balance of $7,000 at the beginning of the year and $9,500 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $12,800 was recognized.
Required:
Calculate the total amount of past-due accounts receivable that were written off as uncollectible during the year.
Answer:
$10,300
Explanation:
The allowance for bad debts account reports that an estimated amount of the account is going to be uncollectible. The write-offs decrease the balance if account received by the amount that is going to be uncollectible.
Write-offs = Beginning allowance + Bad debt - Ending allowance
Write-offs= $7,000 + $12,800 - $9,500
Write-offs= $10,300
Western Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:
Answer:
$2,500
Explanation:
Opening balance $12,000
Cash receipts $30,000
Cash disbursement ($34,500)
Closing balance $7,500
Minimum cash balance $10,000
Borrowing amount(1$0,000-$7,500) $2,500
To maintain $10,000 cash balance western company need to borrow $2,500($10,000-$7500)
Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:
The question is incomplete. Here is the complete question.
The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:______
Answer:
$11.5
Explanation:
The data that was gotten from Keller company stockholders equity account include:
Amount shares in common stock is 20,000 shares
The number of issued shares is 10,000
Number of outstanding shares is 9,000
The excess paid-in capital is $100,000
The common stock is 50,000
The retained earnings is 25,000
Treasury stock is 11,500
The first step is to calculate the amount of shares that was acquired in the treasury stock
= Number of issued shares-number of outstanding shares
= 10,000-9,000
= 1,000
Therefore, the cost per share of the stock in the treasury can be calculated as follows
= Treasury stock value/amount of shares acquired
= 11,500/1,000
= 11.5
Hence the cost per share of the treasury stock is $11.5
The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 YTM 5.05 % 5.49 % 5.78 % 5.93 % 6.09 % What is the price per $ 100 face value of a four-year, zero-coupon, risk-free bond?
Answer:
The answer is $79.42
Explanation:
Zero-coupon bonds does not make any periodic payments of interest. It pays both the interest and the face value at maturity.
N(Number of periods) = 4 years
I/Y(Yield to maturity) = 5.93 percent
PV(present value or market price) = ?
PMT( coupon payment) = 0
FV( Future value or par value) = $100
We are using a Financial calculator for this.
N= 4; I/Y = 5.93; PMT = 0; FV= $100; CPT PV= -79.42
Therefore, the market price of the bond is $79.42