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.
If the fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50, what are the old and new break-even sales (units) if the unit selling price increases by $10
Answer:
Old break even points= 18,000 units
New break even points= 12,857 units
Explanation:
The fixed costs are $450,000
The unit selling price is $75
The unit variable costs are $50
The unit selling price have an increase of 10 units
The first step is to calculate the contribution margin per unit
Contribution margin per unit= Selling price per unit-Variable cost per unit
= $75-$50
= $25 per unit
The old break even point can be calculated as follows
= Fixed costs/Contribution margin per unit
= $450,000/$25
= 18,000 units
Since there is an increase in the unit selling price by $10 per unit then, the contribution matgin per unit can be calculated as follows
= $25+$10
= $35
Therefore, the new break even point can be calculated as follows
= $450,000/$35
= 12,857 units
Hence the old break even point and new break even point are 18,000 units and 12,857 units respectively
In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each year, what period would the first revision and update to the January through December 2017 budget cover
Answer: April 1, 2017 through March 31, 2018.
Explanation:
The company employs continuous budgeting on a quarterly basis. This means that they make budgets for the year in quarters and move with those quarters.
The first revision therefore for the year 2017 will happen on the first day of the second quarter which is April 1. On this date the first quarter will be removed from the budget because it has been passed. However, since the budget always has to be in total of a year, another quarter is included which will be the next quarter on the calendar, the January 1 2018 to the March 31st 2018 quarter.
The period will thus cover April 1, 2017 through March 31, 2018.
A customer buys 100 shares of ABC stock at $44 and sells 1 ABC Jan 45 Call at $5. Subsequently, the market price of ABC goes to $59 and the call contract is exercised. The customer has a:
Answer:
loss = $1,000
Explanation:
the customer will receive $5 (call price) + $44 (call price) = $49 for every share that he/she owns.
since the market price was $59, then the customer lost $59 - $49 = $10 for every share that he/she owned, resulting in a total loss = $10 per share x 100 shares = $1,000
A call option gives the buyer the option to purchase a stock at a set price during a specific time frame.
Workers at Majestic Manufacturing have won the right to unionize, but management is unwilling to participate in the collective bargaining process and bargain in "good faith." This is a direct violation of the _______Act.
Answer: National Labor Relations Act
Explanation:
Passed in 1935, this is a fundamental act in United States Labor law that grants private sector employees the right to join Unions and engage with employers in Collective Bargaining to better their employment conditions. This act even gave the employees the right to strike if their demands are not meant.
Most relevant is that in Section 8 of the Act, it is made clear that when an Employer refuses to engage in Collective Bargaining with the representative of their employees, that this is an unfair labor practice and under the Act, is considered to be illegal.
If the factory overhead is overapplied, then the adjusting journal entry to close the factory overhead account includes a: (Check all that apply.)
Answer:
Hie, the question is missing a list of options;
However the important steps to approach the questions are explained below.
Overhead is Over-applied when : Applied Overheads > Actual Overheads
The amount of overapplied overheads usually adjust the Cost of Goods Sold as follows :
Cost of Goods Sold (debit)
Overheads (credit)
This entry ensures that the costs of sales are not understated !
Alternatively the over-applied overheads can be adjusted to the Cost of Sales and other Inventory balances at the end of the period in pro-rata (Weight of their total) as follows
Cost of Goods Sold (debit)
Finished Goods Inventory (debit)
Work in Process Inventory (debit)
Raw Materials Inventory (debit)
Overheads (credit)
The bid-ask spread exists because of _______________. A. market inefficiencies B. discontinuities in the markets C. the need for dealers to cover expenses and make a profit D. lack of trading in thin markets
Answer:
C. the need for dealers to cover expenses and make a profit
Explanation:
In the market for securities there are two pricing of securities.
The ask price is the price at which the buyer is willing to purchase a security.
The ask price or the offer price is price at which the seller of a security is willing to sell it. Ask price can be firm or negotiable.
Bid ask spread is the difference between the highest amount a buyer is willing to buy a security and the lowest price at which a seller is willing to sell it.
This spread exists because dealers need to cover expenses and make a profit
Select the appropriate reporting method for each of the items listed below.
Item Reporting Method
1. Accounts payable.
2. Current portion of long-term debt.
3. Sales tax collected from customers.
4. Notes payable due next year.
5. Notes payable due in two years.
6. Advance payments from customers.
7. Commercial paper.
8. Unused line of credit.
9. A contingent liability with a probable likelihood of
occurring within the next year and can be estimated.
10. A contingent liability with a reasonably possible likelihood
of occurring within the next year and can be estimated.
Answer:
Items --- Reporting Method
1 . Accounts payable - Current liability
2 . Current portion of long-term debt - Current liability
3 . Sales tax collected from customers - Current liability
4 . Notes payable due next year - Current liability
5 . Notes payable due in two years - Long-term liability
6 . Advance payments from customers - Current liability
7 . Commercial paper - Current liability
8 . Unused line of credit - Disclosure note only
9 . A contingent liability that is probable likelihood of occurring within the next year and can be estimated - Current liability
10 . A contingent liability that is reasonably possible likelihood of occurring within the next year and can be estimated - Disclosure note only
McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information:
20Y5
Retail $249,570
Wholesale $366,685
Total Revenue $616,255
20Y4
Retail $265,500
Wholesale $324,500
Total Revenue $590,000
Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers
Answer:
McHale Company
Horizontal Analysis of the segments
For the years 20Y4 and 20Y5
20Y5 20Y4 Difference amount Difference Percent
Retail $249,570 $265,500 $15,930 6.0%
Wholesale $366,685 $324,500 $42,185 13.0%
Total revenue $616,255 $590,000 $58,115 3.85%
Difference Percent Working
Retail= $15,930 / $265,500 * 100 = 6%
Wholesales = $42,185 / $324,500 * 100 = 13%
Total revenue = $58,115 / $590,000 * 100 = 3.85%
Ken works in a U.S. based pharmaceutical company that sells antibiotics at a low cost to several African countries. He later learns that most of these drugs are expired antibiotics that have been repackaged by the company. Ken immediately informs one of his friends, a federal agent, regarding his company’s illegal activities. Which of the following statements is true of the given scenario?A) There are no implications because the shelf-life of pharmaceuticals is typically much longer than as dated.B) Ken’s constitutional right to freedom of speech would protect him from any form of retaliation by his employer.C) Ken would receive no protection since no comprehensive whistle-blowing law protects the right to free speech.D) Ken would be protected by law from retaliation by his employer.
Answer: D) Ken would be protected by law from retaliation by his employer.
Explanation:
Ken would be protected from any retaliation from his employer by the Sarbanes-Oxley Act under section §1514A of the act that protects Whistleblowers.
The act directly prohibits the discharging, demotion, suspension, harassment, or in any other type discriminate against a a whistleblower.
Ken in his actions acted as a Whistleblower and as such would be afforded due protection by the law.
Obama drives up miles-per-gallon requirements Emissions from all new vehicles must be cut from 354 grams to 250 grams. To meet this new standard, the price of a new vehicle will rise by $1,300. Source: USA Today, May 20, 2009 What is the opportunity cost of reducing the emission level by 1 gram?
Answer:
$12.5 per gram
Explanation:
Opportunity cost is the cost which is:
Future related costCash flow in natureIncremental Cost or DifferentialIn simple words, opportunity cost is the benefit lost due to given up another best alternative.
To reduce the pollution level from 354 to 250 gram, the price of new vehicle will increase by $1300.
Hence
The increase in price per gram = $1,300 / (354 - 250) = $12.5 per gram
This is the opportunity cost per gram increase in Carbon dioxide emission which the companies will have to bear if they don't opt to environmental free vehicles.
Suppose we are looking at a cash flow statement constructed using the INDIRECT method. We see a positive adjustment in the operating section of $1000 for Depreciation. Which of the following are correct interpretations of this? A. Depreciation provided cash of $1000 B. The firm sold long-term assets for $1000 C. The firm invested $1000 of cash in long-term assets D. Income was lower by $1000 because of Depreciation expense
Answer: D. Income was lower by $1000 because of Depreciation expense
Explanation:
When preparing the Cashflow Statement using the Indirect method, Depreciation is added to the Net Income in the Operating Section.
This is because Depreciation is a non-cash expense that was removed from the revenue to calculate income. Now that the company wants to know how much actual cash it has, it will have to add back Depreciation because depreciation is not a cash expense so does not actually reduce the money the company has.
Several years after reengineering its production process, King Corporation hired a new controller, Christine Erickson. She developed an ABC system very similar to the one used by King's chief rival. Part of the reason Erickson developed the ABC system was because King's profits had been declining, even though the company had shifted its product mix toward the product that had appeared most profitable under the old system. Before „ adopting the new ABC system, the company had used a plantwide overhead rate, based on direct labor hours developed years ago. For the upcoming year, King's budgeted ABC manufacturing overhead allocation rates are as follows:
Activity Allocation Base Activity Cost allocation rate
Materials handling Number of parts $4.00 per part
Machine setup Number of setups $375.00 per setup
Insertion of parts Number of parts $28.00 per part
Finishing Finishing direct labor hours $54.00 per hour
The number of parts is now a feasible allocation base because King recently purchased bar-coding technology. King produces two wheel models: Standard and Deluxe Budgeted data for the upcoming year are as follows:
Standard Delux
Parts per wheel 8 10
Setups per 1,000 wheels 20 20
Finishing direct labor hours per wheel 2 3.5
Total direct labor hours per wheel 2.6 3.4
The company's managers expect to produce 1,000 units of each model during the year.
Required:
a. Compute the total budgeted manufacturing overhead cost for the upcoming year.
b. Compute the manufacturing overhead cost per wheel of each model using ABC.
c. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system.
Answer:
King Corporation
a. Computation of total budgeted manufacturing overhead cost:
Activities Standard Deluxe Total
Materials handling (number of parts):
Standard = 8 x $4 x 1,000 $32,000
Deluxe = 10 x $4 x 1,000 $40,000 $72,000
Machine setup (number of parts):
= 20 x $375 $7,500 $7,500 $15,000
Insertion of parts (number of parts):
Standard = 8 x $28 x 1,000 $224,000
Deluxe = 10 x $28 x 1,000 $280,000 $504,000
Finishing (direct labor hours):
Standard = 2 x $54 x 1,000 $108,000
Deluxe = 3.5 x $54 x 1,000 $189,000 $297,000
Total $371,500 $516,500 $888,000
b. Computation of the manufacturing overhead cost per wheel of each model using ABC:
Standards = $371,500/1,000 = $371.50
Deluxe = $516,500/1,000 = $516.50
c. Computation of the company's traditional plantwide overhead rate to determine manufacturing overhead cost per wheel:
Overhead rate = $888,000/6,000 = $148
Manufacturing overhead cost per wheel:
Standard = $148 x 2.6 = $384.80
Deluxe = $148 x 3.4 = $503.20
Explanation:
a) Calculations:
Total overhead cost = $888,000
Allocation based on total direct labor hours per wheel
Plantwide overhead rate:
Total labor hours:
Standard 2.6 x 1,000 = 2,600 hours
Deluxe 3.4 x 1,000 = 3,400 hours
Total labor hours = 6,000 (2,600 + 3,400)
= $888,000/6,000 = $148 per direct hour
b) According to wikipedia.com, "Activity-based costing is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. This model assigns more indirect costs into direct costs compared to conventional costing."
Specter Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 820 2 1,130 3 1,390 4 1,525 a. If the discount rate is 10 percent, what is the present value of these cash flows
Answer:
$3,765.26
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash Flow in year 1 = $ 820
Cash Flow in year 2 = 1,130
Cash Flow in year 3 = 1,390
Cash Flow in year 4 = 1,525
I = 10
PV = $3,765.26
To find the PV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Carla Vista Company has the following information available for September 2020. Unit selling price of video game consoles $400 Unit variable costs $240 Total fixed costs $54,400 Units sold 6001. Compute the unit contribution margin. Unit contribution margin_______ 2. Compute Carla Vista' break-even point in units. 3. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Answer and Explanation:
a. The computation of unit contribution margin is shown below:
As we know that
Unit contribution margin = Unit selling price - unit variable cost
= $400 - $240
= $160
b. The break even point in units is as follows
As we know that
= Fixed cost ÷ unit contribution margin
= $54,400 ÷ $160
= $340
c. Now the preparation of the CVP income statement for the break even point is shown below:
Carla Vista Company
CVP Income statement
Particulars Amount Units
Sales $136,000 $400
Less: Variable cost -$81,600 $240
Contribution margin $54,400 $160
Less: Fixed cost -$54,400
Net operating income $0
Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of peanut butter each quarter. The following data are available for the third quarter of 2017. Total fixed manufacturing overhead $120,000 Fixed selling and administrative 20,000 Sales price per case 34 Direct materials per case 16 Direct labor per case 7 Variable manufacturing overhead per case 3 Required a. Compute the cost per case under both absorption costing and variable costing. Absorption $Answer Variable $Answer b. Compute net income under both absorption costing and variable costing. Do not use a negative sign with your answers. SMUCKERS Absorption Costing Income Statement For the Third Quarter of 2017 Sales Answer Answer Answer Answer Answer Answer Answer Net income Answer SMUCKERS Variable Costing Income Statement For the Third Quarter of 2017 Sales Answer Answer Answer Answer Answer Fixed expenses: Answer Answer Selling and administrative Answer Answer Net income Answer
Answer:
a:Total Variable Costs $26
a:Total Manufacturing Costs = $ 30
b:Net Income Variable Costing $100,000
b: Net Income Absorption Costing $ 100,000
Explanation:
Smuckers Manufacturers
Costs per case under Variable Costing
Direct materials per case 16
Direct labor per case 7
Variable manufacturing overhead per case 3
Total Variable Costs $26
Costs per case under Absorption Costing
Direct materials (30,000*16) 480,000
Direct labor (30,000*7) 210,000
Variable manufacturing overhead (30,000*3) 90,000
Total Variable Costs 780,000
Total fixed manufacturing overhead $120,000
Total Manufacturing Costs $ 900,000
Total Manufacturing Costs per Case= $ 900,000/ 30,000= $ 30
The difference between the variable and absorption costing is that the product costs include variable and fixed costs in absorption costing. But in variable costing the product costs include only variable costs.
SMUCKERS
Variable Costing Income Statement
For the Third Quarter of 2017
Sales (30,000*34) 1020,000
Direct materials (30,000*16) 480,000
Direct labor (30,000*7) 210,000
Variable manufacturing overhead (30,000*3) 90,000
Total Variable Costs 780,000
Contribution Margin 240,000
Fixed Expenses 140,000
Total fixed manufacturing overhead $120,000
Fixed selling and administrative 20,000
Net Income 100,000
In this case the net income under both variable and absorption costing does not change because the units produced are units sold. No cost is charged to ending inventory under absorption costing.
SMUCKERS
Absorption Costing Income Statement
For the Third Quarter of 2017
Sales (30,000*34) 1020,000
Direct materials (30,000*16) 480,000
Direct labor (30,000*7) 210,000
Variable manufacturing overhead (30,000*3) 90,000
Total fixed manufacturing overhead $120,000
Total Manufacturing Costs 900,000
Gross Profit 120,000
Fixed Expenses 20,000
Fixed selling and administrative 20,000
Net Income 100,000
Cindy's current year adjusted gross income (AGI) is $300,000 and her current year total tax liability is $60,000. Her immediate prior year AGI is $200,000 with a total tax liability of $40,000. To avoid an underpayment interest penalty, what is Cindy's minimum required total tax payment amount for the current year
Answer:
The answer is $44,000
Explanation:
Solution
Given that
Now
Present/current year AGI = $300000
Present /current year tax liability = $60000
Prior year AGI = $200000
Prior year tax liability = $40000
Thus
As per Tax rule or applying the Tax rule
If Adjusted gross income(AGI) of prior year is below $250000 then the minimum required tax payment in the current year in order to avoid interest penalty is lower of
(1) 90% of present /current year tax (liability) or
(2) 110% of prior year tax liability
So
Because the prior year AGI is $200000 which is lower than $250000, in order to avoid interest penalty, the minimum required payment amount of tax liability in current/present year is lower of
(1) 90% of current year tax liability of $60000
Then
$60000 *90% = $54000
Or
(2)110% of prior year tax liability of $40000
$40000 ×110% = $44000
Hence, minimum required total tax payment amount for the current year is $44,000
Webby Inc. is a web development company. Webby’s monthly production function for developing websites is given in the table below. Webby pays $4,000 a month in rent for office space and equipment. It pays each programmer $3,000 a month. There are no other production costs. Fill in the table of production costs.
Answer and Explanation:
The computation of the filling of the given table for the production cost is shown in the attachment below:
As we know that
Total cost = Fixed cost + variable cost
Average fixed cost = fixed cost ÷ websites
Average Variable cost = Variable cost ÷ websites
Therefore the average total cost is
= Average fixed cost + average variable cost
The marginal cost is
= Change in total cost ÷ change in quantity
These formulas are used to complete the table as given below.
Exercise 7-3A Allocate costs in a basket purchase (LO7-1) Red Rock Bakery purchases land, building, and equipment for a single purchase price of $360,000. However, the estimated fair values of the land, building, and equipment are $115,000, $253,000, and $92,000, respectively, for a total estimated fair value of $460,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment
Answer:
Land = $90,000
Building = $198,000
Land = $72,000
Explanation:
The Fair Values of Land, Building and Equipment are used to apportion the single purchase price to the respective asset accounts as follows :
Land = $115,000/ $460,000 × $360,000
= $90,000
Building = $253,000/ $460,000 × $360,000
= $198,000
Land = $92,000/ $460,000 × $360,000
= $72,000
g For this question, ignore inflation. Suppose Jenny earns $60,000 per year working as a tax analyst. After ten years, she quits her job and pursues a PhD in Art History. For the 5 years she is in school, she gets a teaching stipend of $12,000 per year. For the next 35 years, she is an art director and earns $95,000. If she expects to live for 20 years in retirement. If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year? What might prevent her from perfectly smoothing consumption?
Answer:
If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year?
Jenny's total income during her life = income as tax analyst ($60,000 x 10) + income as PhD student ($12,000 x 5) + income as Art Director (35 x $95,000) = $3,985,000
she generated income during 50 years and expects to live 20 more, so in order to perfectly smooth consumption across her life, she must divide her total life income by 70 years = $3,985,000 / 70 years = $56,928.57 per year
What might prevent her from perfectly smoothing consumption?
First of all, besides inflation, you also earn interest on your savings. That is why 401k and other retirement accounts work so well (the magic of compound interest). Even if inflation and interests didn't exist, you cannot know exactly what you are going to earn in the future and for how many years. In this case, she earned $60,000 for 10 years, but then earned only $12,000 during 5 years. If she really wanted to smooth her consumption, she would have needed to get a loan because her savings during the first 10 years wouldn't be enough.
Raven Corporation owns three machines that it uses in its business. It no longer needs two of these machines and is considering distributing them to its two shareholders as a property dividend. All three machines have a fair market value of $20,000 each. Their basis is as follows: Machine A, $27,000; Machine B, $20,000; and Machine C, $12,000. The corporation has asked you for advice.
A. If Raven distributes Machine A, the result will be a_______loss of $_______.
B. If Raven distributes Machine B, the result will be_______of $______.
C. If Raven distributes Machine C, the result will be a______of $______.
D. Therefore, to________on Machine A, Raven should consider______Machine A. Raven should consider distributing Machine B because there will be______on the distribution. To______on Machine C, Raven should consider_______Machine C.
Answer:
A.If Raven distributes Machine A, the result will be a NONDEDUCTIBLE LOSS of $7,000
B. If Raven distributes Machine B, the result will be NO GAIN OR LOSS OF $0
C. If Raven distributes Machine C, the result will be a TAXABLE GAIN of $8,000
D.Therefore to PRESERVE THE LOSS on Machine A, Raven should consider SELLING Machine A. Raven should consider distributing Machine B because there will be NO RECOGNIZED GAIN OR LOSS on the distribution. To AVOID RECOGNIZING THE GAIN on Machine C, Raven should consider NEITHER SELLING NOR DISTRIBUTING Machine C
Explanation:
A. If Raven distributes Machine A, the result will be a NONDEDUCTIBLE LOSS of $7,000
Calculation as
(20,000 – 27,000) =-$7,000
B. If Raven distributes Machine B, the result will be NO GAIN OR LOSS OF $0
Calculated as :
(20,000-20,000)=$0
C. If Raven distributes Machine C, the result will be a TAXABLE GAIN of $8,000
Calculated as:
(20,000-12,000)=$8,000
D.Therefore to PRESERVE THE LOSS on Machine A, Raven should consider SELLING Machine A. Raven should consider distributing Machine B because there will be NO RECOGNIZED GAIN OR LOSS on the distribution. To AVOID RECOGNIZING THE GAIN on Machine C, Raven should consider NEITHER SELLING NOR DISTRIBUTING Machine C
Costs that remain constant in total dollar amount as the level of activity changes are called Group of answer choices
Answer: Fixed Costs
Explanation:
How much would you need to deposit in an account now in order to have $4000 in the account in 5 years? Assume the account earns 3% interest compounded monthly.
Answer:
PV= $3,443.48
Explanation:
Giving the following information:
Future value= $4,000
Interest rate= 0.03/12= 0.0025
Number of months= 5*12= 60
To calculate the initial investment required, we need to use the following formula:
PV= FV/(1+i)^n
PV= 4,000/(1.0025^60)
PV= $3,443.48
Question 3
When a court hears a breach of contract dispute, its job is to:
Tom and Suri decide to take a worldwide cruise. To do so, they need to save $15,000. They plan to invest $2,500 at the end of each year for the next six years to earn 9% compounded annually. Calculate the future value of the investment. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)
Answer: $18,808.25
Explanation:
There is a constant cashflow of $2,500 making this an annuity.
The future value of the $2,500 paid every year for 6 years at 9% will be;
Future value of Annuity = 2,500 * Future Value of Annuity factor, 6 periods, 9%) (refer to attached table)
= 2,500 * 7.5233
= $18,808.25
The future value of the amount is more than the amount they would require.
On December 31, 2014, Flint Corporation sold for $100,000 an old machine having an original cost of $180,000 and a book value of $80,000. The terms of the sale were as follows:
$20,000 down payment
$40,000 payable on December 31 each of the next two years
The agreement of sale made no mention of interest; however, 9% 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, 2012 rounded to the nearest dollar? (The present value of an ordinary annuity of 1 at 9% for 2 years is 1.75911.)
a. $70,364
b. $90,364.
c. $80,000.
d. $140,728.
Answer:
a. $70,364
Explanation:
We must determine the present value of the notes receivable using the 9% discount rate.
PV of accounts receivable = $40,000 / 1.09 + $40,000 / 1.09² = $36,697.25 + $33,667.20 = $70,364.45
When a notes receivable is issued and carries no interests, you have to record the present value of the notes receivable in order to determine the amount that should be recorded as interest income in the future. In this case, interest income = $80,000 - $70,364 = $9,636
Suppose we are looking at a cash flow statement constructed using the INDIRECT method. We see a NEGATIVE adjustment of $5000 related to Accounts Payable. Which of the following are correct interpretations of this?a. Depreciation provided cash of $1000 b. The firm sold long-term assets for $1000 c. The firm invested $1000 of cash in long-term assets d. Income was lower by $1000 because of Depreciation expense
Answer:
It implies that the firm paid $5,000 to its supplier this accounting period (e.g. year) out of the amount the firm is owing the supplier.
Note: The correct answer is as stated above it is not included in the option. Kindly confirm the options again from your teacher.
Explanation:
Accounts payable refers to the amount of money a firm is owing its suppliers.
Account payable is one of the component of the current liabilities in the balance sheet, and non-cash current liability item that is adjusted for in the cash flow statement to arrive at net cash from operating activities when an indirect method is being used.
Since accounts payable is the amount of money a firm is owing its suppliers, a negative a NEGATIVE adjustment to its implies that company has paid its supplier the negative amount in the accounting period.
Therefore, a NEGATIVE adjustment of $5000 related to Accounts Payable implies that the firm paid $5,000 to its supplier this accounting period (e.g. year) out of the amount the firm is owing the supplier.
All of the following are economic resources, or factors of production EXCEPT Group of answer choices land. entrepreneurship. physical capital. money.
Answer:
The correct answer is:
Money
Explanation:
Economic resources or factors of production are the inputs required for the creation of goods or services. They are divided into four categories:
Land: includes physical land and any other natural resources needed for production. Examples are water, natural gas, oil etc. Its reward is rent
Labour: This refers to human efforts contributed to the production of goods or services. Its reward is wages
Capital: this refers to machinery, tools and buildings that are used by humans for production. Its reward is interest
Entrepreneurship: refers to someone who combines the other three factors; land, labour and capital, to earn a profit. Its reward is profit
Money is not a factor of production because it is not directly involved in production of goods or services. However, it facilitates the processes of production like enabling purchase of machinery, payment of wages etc.
Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted cash balance per books on May 31. Cash balance per books, 5/31 $5,400 Deposits in transit 375 Notes receivable and interest collected by bank 650 Bank charge for check printing 40 Outstanding checks 2,400 NSF check 140
Answer:
$5,870
Explanation:
Preparation for Rodgers Company Bank Reconciliation Statement
Cash balance per books, 5/31 $5,400
Add :Notes receivable and interest collected by bank $650
Total $6,050
Less: Bank charge for check printing ($40)
NSF check ($140)
Adjusted Cash Balance $5,870
Therefore the Adjusted Cash Book for Rodgers Company Bank Reconciliation Statement will be $5,870
Item 11Item 11 You are going to deposit $24,500 today. You will earn an annual rate of 5.5 percent for 8 years, and then earn an annual rate of 4.9 percent for 11 years. How much will you have in your account in 19 years
Answer:
$63,637.94
Explanation:
$24,500 is deposited in the bank
5.5% annual rate will be earned in 8 years
= 5.5/100
= 0.055
4.9% annual rate will be earned in 11 years
= 4.9/100
= 0.049
The first step is to calculate the future value of the amount after 8 years
= amount deposited×(1+r)^n
r is the annual rate, n is the number of years
= $24,500×(1+0.055)^8
= $24,500×1.055^8
= $24,500×1.534686515
= $37,599.8196
Therefore, the amount that would be present in the account in 19 years can be calculated as follows
= amount at the end of year 8×(1+r)^n
where r = 0.049, n= 11
= $37,599.8196×(1+0.049)^11
= $37,599.8196×1.049^11
= $37,599.8196×1.692506597
= $63,637.94
Hence the amount present in the account in 19 years is $63,637.94
If James and Kamanda had reached a void agreement that included conditions, then Kamanda would have had to give James the toaster if the conditions were satisfied.
a. True
b. False
There is a problem with the question, the word void should not be there. A void agreement is simply not enforceable since it is not valid. So I will assume that they both reached a valid agreement and it was a typing mistake.
Answer:
a. True
Explanation:
If two (or more) parties engage in a valid contract that includes certain specific conditions that are necessary in order to complete performance, and these conditions are met by one of the parties, then the other party must perform their part. In other words, if James performed all the conditions that were included in their contract, then Kamanda should hand over the toaster to James.