Answer: A. No loss on the income statement Available-for-sale investments of $11,000 and an unrealized loss of $2,000 in stockholders' equity on the balance sheet.
Explanation:
Available-For-Sale (AFS) securities are not to have their gains or losses reflected in the income statement. They are to be reflected in the Other Comprehensive Income (OCI) section of the Stockholders Equity.
If there is a loss, the AFS security is written down by the loss amount which is then transferred to the OCI section of equity as an unrealized loss. It will reduce the OCI which would reduce the stockholders equity.
In this case therefore, AFS would go to $11,000 and OCI would record an unrealized loss of $2,000.
International Management Position (Scenario)
Global Choppers Inc. is an MNE based in Vancouver that manufactures high-quality motorcycles for sale around the world. The majority of design work is done at the Vancouver headquarters, but manufacturing and assembly are performed in company facilities located in Romania. In order to maintain control over manufacturing quality, Global Choppers sends representatives from the company headquarters to manage the Romanian facility for one year rotations. Conrad O'Neil has been selected to run the foreign facility for the upcoming year. The human resources department of Global Choppers will be preparing him for his foreign assignment through a variety of training methods.
Conrad's training for his assignment in Romania would most likely include ________.
Answer: area studies
Explanation:
Based on the information given in the question, Conrad's training for his assignment in Romania would most likely include the area studies.
Area studies simply refers to the study of the political or the geographical area
of a particular region and this consist of the history, language, geography and the general culture of the place.
Since Conrad O'Neil has been selected to run the foreign facility for the upcoming year, he needs to be trained on the area studies of the place.
Jessie purchased land as an investment on January 12, 2015 for $80,000. On January 31, 2020, Jessie sold the land for $33,000 cash. In addition, the purchaser assumed the mortgage of $70,000 on the land. What is the amount of the realized gain or loss on the sale
Answer:
$23,000 gain
Explanation:
In the given scenario the initial cost of purchase of the land by Jessie was $80,000
She finally sold the land for $33,000 cash and the purchaser also assumed a mortgage of $70,000.
That is a total sale price of 33,000 + 70,000 = $103,000
The gain on this transaction will be 103,000 - 80,000 = $23,000
Since part of the payment is in mortgage the gain is a long term capital gain for Jessie
Why do you think it is important to consider both salary and benefits when applying for a job?
Missouri River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y2, Missouri River Supply incorrectly counted its inventory as $233,400 instead of the correct amount of $238,600. Enter all amounts as positive numbers. a. State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply. Balance Sheet Items Understated/Overstated Amount Merchandise Inventory $fill in the blank 2 Current Assets fill in the blank 4 Total Assets fill in the blank 6 Owner's Equity fill in the blank 8 b. State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 20Y2. Income Statement Items Overstated/Understated Amount Cost of Merchandise Sold $fill in the blank 10 Gross Profit fill in the blank 12 Net Income fill in the blank 14 c. If uncorrected, what would be the effect of the error on the 20Y3 income statement
Answer:
A. Balance Sheet
Merchandise Inventory $5,200 Understated
Current Asset $5,200 Understated
Total Assets $5,200 Understated
Owner's equity $5,200 Understated
B. Income Statement
Cost of merchandise sold $5,200 Overstated
Gross profit $5,200 Understated
Net income $5,200 Understated
C. Income Statement
Cost of merchandise sold $5,200 Understated
Gross profit $5,200 Overstated
Net income $5,200 Overstated
Explanation:
A. Calculation to State the effect of the error on the December 31, 20Y2, balance sheet of Missouri River Supply
BALANCE SHEET
Merchandise Inventory $5,200 Understated
Current Asset $5,200 Understated
Total Assets $5,200 Understated
Owner's equity $5,200 Understated
($238,600-$233,400)
B. Calculation to State the effect of the error on the income statement of Missouri River Supply for the year ended December 31, 20Y2.
INCOME STATEMENT
Cost of merchandise sold $5,200 Overstated
Gross profit $5,200 Understated
Net income $5,200 Understated
($238,600-$233,400)
C. Calculation to determine what would be the effect of the error on the 20Y3 income statement If uncorrected
INCOME STATEMENT
Cost of merchandise sold $5,200 Understated
Gross profit $5,200 Overstated
Net income $5,200 Overstated
($238,600-$233,400)
A natural experiment is a chance occurrence that mimics a randomized controlled trial. In order to analyze causal effects from natural experiments, economists make use of a statistical method known as instrumental variables, in which one variable from a natural experiment is used as an instrument for a particular independent variable of interest. Assume the independent variable of interest is x1 and the dependent variable in a regression is y. Which of the following represent necessary characteristics of a suitable instrument?
a. The instrument has at least 200 observations
b. The instrument is correlated with
c. The instrument has a conditional mean of zero
d. The instrument does not directly influence y, except through
Answer: b. The instrument is correlated with x1.
d. The instrument does not directly influence y, except through x1.
Explanation:
Based on the information given in the question, the necessary characteristics of a suitable instrument include:
• The instrument is correlated with x1.
• The instrument does not directly influence y, except through x1.
Some of the criteria for an instrument variable are the fact that it should have a causal effect on independent variable and also the dependent variable isn't directly affected except through the independent variable which is x1 in this scenario.
Therefore, the correct option are B and D.
Compute the payback period for each of these two separate investments: A new operating system for an existing machine is expected to cost $280,000 and have a useful life of five years. The system yields an incremental after-tax income of $80,769 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $11,000. A machine costs $200,000, has a $15,000 salvage value, is expected to last seven years, and will generate an after-tax income of $44,000 per year after straight-line depreciation.
Answer and Explanation:
The computation of the payback period for each investment is shown below;
For Option 1
= Initial Investment ÷ Annual Cash Flow
= $280,000 ÷ $134,569
= 2.081 Year
Here Annual cash inflow is
= Net income + Depreciation
= $80,769 + (($280,000 - $11,000) ÷ 5)
= $134,569
For Option-2
= Initial Investment ÷ Annual Cash Flow
= $200,000 ÷ $70,429
= 2.84 Year
Here Annual cash inflow is
= Net income + Depreciation
= $44,000 + (($200,000 - $15,000) ÷ 7)
= $70,429
Here I Sit Sofas has 6,600 shares of common stock outstanding at a price of $89 per share. There are 950 bonds that mature in 25 years with a coupon rate of 6.3 percent paid semiannually. The bonds have a par value of $1,000 each and sell at 106 percent of par. The company also has 5,500 shares of preferred stock outstanding at a price of $42 per share. What is the capital structure weight of the debt
Answer:
55.17 %
Explanation:
We use the Market Values of Sources of Capital to determine their Weight in Capital Structure.
Weight of the debt = Market Value of Debt / Total Market Value x 100
where,
Market Value of Debt = 950 x $1,000 x 106% = $1,007,000
Market Value of Common Stock = 6,600 x $89 = $587,400
Market Value of Preferred Stock = 5,500 x $42 = $231,000
therefore,
Weight of the debt = $1,007,000 / $1,825,400 x 100
= 55.17 %
thus,
The capital structure weight of the debt is 55.17 %
Your child is planning attend summer camp for 3 months, starting 12 months from now. The cost for camp is $2,676 per month, each month, for the 3 months she will attend. If your investments earn 2.3% APR (compounded monthly), how much must you invest each month, starting next month, for 3 months such that your investment will grow to just cover the cost of the camp
Answer:
Monthly deposit= $2,625.16
Explanation:
Giving the following information:
Total cost= 2,676*3= $8,028
Monthly interest rate0 0.023/12= 0.00192
First, we need to calculate the nominal value required at the end of the third month:
PV= FV / (1 + i)^n
FV= 8,028
i= 0.00192
n= 9 months
PV= 8,028 / (1.00192^9)
PV= $7,890.6
Now, the monthly investment to reach $7,890.6:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (7,890.6*0.00192) / [(1.00192^3) - 1]
A= $2,625.16
Analysis of Transactions Charles Chadwick opened a business called Charlie's Detective Service in January 20--. Set up T accounts for the following accounts: Cash; Accounts Receivable; Office Supplies; Computer Equipment; Office Furniture; Accounts Payable; Charles Chadwick, Capital; Charles Chadwick, Drawing; Professional Fees; Rent Expense; and Utilities Expense. The following transactions occurred during the first month of business. Record these transactions in T accounts. After all transactions are recorded, foot and balance the accounts if necessary. (a) Invested cash in the business, $30,369. (b) Bought office supplies for cash, $379. (c) Bought office furniture for cash, $5,320. (d) Purchased computer and printer on account, $8,118. (e) Received cash from clients for services, $2,850. (f) Paid cash on account for computer and printer purchased in transaction (d), $3,615. (g) Earned professional fees on account during the month, $9,322. (h) Paid cash for office rent for January, $1,303. (i) Paid utility bills for the month, $889. (j) Received cash from clients billed in transaction (g), $6,442. (k) Withdrew cash for personal use, $2,823.
Answer:
Charlie's Detective Service
T-accounts:
Cash
Account Titles Debit Credit
Charles Chadwick, Capital $30,369
Office supplies $379
Office furniture 5,320
Professional Fees 2,850
Accounts Payable 3,615
Rent Expense 1,303
Utilities Expense 889
Accounts Receivable 6,442
Charles Chadwick, Drawing 2,823
Balance $25,332
Totals $39,661 $39,661
Accounts Receivable
Account Titles Debit Credit
Professional Fees $9,322
Cash $6,442
Balance $2,880
Office Supplies
Account Titles Debit Credit
Cash $379
Computer Equipment
Account Titles Debit Credit
Accounts Payable $8,118
Office Furniture
Account Titles Debit Credit
Cash $5,320
Accounts Payable
Account Titles Debit Credit
Computer and printer $8,118
Cash $3,615
Balance $4,503
Charles Chadwick, Capital
Account Titles Debit Credit
Cash $30,369
Charles Chadwick, Drawing
Account Titles Debit Credit
Cash $2,823
Professional Fees
Account Titles Debit Credit
Cash $2,850
Accounts Receivable 9,322
Balance $12,172
Rent Expense
Account Titles Debit Credit
Cash $1,303
Utilities Expense
Account Titles Debit Credit
Cash $889
Explanation:
a) Data and Analysis:
(a) Cash $30,369 Charles Chadwick, Capital $30,369
(b) Office supplies $379 Cash $379
(c) Office furniture $5,320 Cash $5,320
(d) Computer and printer $8,118 Accounts Payable $8,118
(e) Cash $2,850 Professional Fees $2,850
(f) Accounts Payable $3,615 Cash $3,615
(g) Accounts Receivable $9,322 Professional Fees $9,322
(h) Rent Expense $1,303 Cash $1,303
(i) Utilities Expense $889 Cash $889
(j) Cash $6,442 Accounts Receivable $6,442
(k) Charles Chadwick, Drawing $2,823 Cash $2,823
At 60,000 machine hours, Boris Company static budget for variable overhead costs is $180,000. At 60,000 machine hours, the company's static budget for fixed overhead costs is $300,000. Machine hours are the cost driver of all overhead costs. The static budget is based on 60,000 machine hours. At 60,000 machine hours, the company produces 40,000 units. The following data is available:
Actual units produced and sold 42,000
Actual machine hours 64,000
Actual variable overhead costs $185,600
Actual fixed overhead costs $302,400
What is the fixed overhead spending variance?
A) $2,400 Favorable
B) $2,400 Unfavorable
C) $1,000 Unfavorable
D) $1,000 Favorable
Answer:
$2,400 unfavorable
Explanation:
The computation of the fixed overhead spending variance is shown below;
We know that
fixed overhead spending variance = actual fixed overhead - budgeted fixed overhead
= $302,400 - $300,000
= $2,400 unfavorable
As actual fixed overhead is more than the standard fixed overhead so it should be unfavorable else it is favorable
One way to support the domestic marketing campaign is through industry participation. List three other pillars of this campaign.
Answer: strategic pillars: content, data, and execution
Explanation:
Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $287,000 after deducting Robert's $86,100 salary. In addition to his compensation, ABC pays Robert dividends of $200,900.
a. What is Robert's qualified business income?
b. Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050?
Answer:
A. $287,000
B. $192,050
Explanation:
a. Based on the information givenwe were told that company ABC had net income of the amount of $287,000 after deducting Robert's salary of the amount of $86,100 which therefore means that ROBERT'S QUALIFIED BUSINESS INCOME will be the amount of $287,000.
b. Calculation to determine whether your answer to part (a) would change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050
Based on the information given the amount of $192,050 will be the additional amount of salary that can be deducted which is Calculated as:
=[$287,000 - ($181,050-$86,100)]
=$287,000-$94,950
=$192,050
Listed below are year-end account balances ($ in millions) taken from the records of Poe Dameron's Pilot School. Debit Credit Accounts receivable 668 Building and equipment 922 Cash 40 Interest receivable 38 Inventory 19 Land 153 Notes receivable (long-term) 475 Prepaid rent 36 Supplies 11 Trademark 46 Accounts payable 615 Accumulated depreciation 74 Additional paid-in capital 481 Dividends payable 30 Common stock (at par) 13 Income tax payable 49 Notes payable (long-term) 811 Retained earnings 313 Deferred revenue 22 TOTALS 2,408 2,408 What would Poe Dameron's Pilot School report as total assets
Answer:
$812
Explanation:
Current assets:
Details Amount
Account receivable $668
Cash $40
Interest Receivable $38
Inventory $19
Prepaid rent $36
Supplies $11
Total Assets $812
g In the theory of comparative advantage, a good should be produced in that nation where Multiple Choice the production possibilities line lies further to the right than the trading possibilities line. its cost is least in terms of alternative goods that might otherwise be produced. its absolute cost in terms of real resources used is least. its absolute money cost of production is least.
Answer:
its cost is least in terms of alternative goods that might otherwise be produced
Explanation:
Comparative Advantage
This is simply explained as when an individual has an opportunity cost of performing a task is lower than the other individuals opportunity cost that is it is more efficient. It is the usual fundamental basis for international trade. Its principle includes production at a maximum peak to be achieved if each individual focus on the job or activities for which his or her opportunity cost is lowest.
Opportunity Cost
This is simply known as the highest valued of an alternative that must be given up so as to be involved or engage in an activity/job or task. There are several sources of a comparative advantage. They includes;
1. Climate and natural resources
2. Relative abundance of labor and capital
3. Technology
4. External economies etc.
Grass Frog Company sells merchandise only on credit. For the year ended December 31, 2018, the following data are available:
Sales (all on credit) $2,100,000
Accounts Receivable, January 1, 2018 305,000
Allowance for doubtful accounts,
January 1, 2018 (credit) 25,000
Cash collections during 2018 1,980,000
Accounts written off as uncollected
(default) during 2018 15,000
1. Determine the balance of Accounts Receivable at December 31, 2018.
2. Assume that the company estimates bad debts at 4% of credit sales. What amount will the company record as bad debt expense for 2018?
3. What journal entry Grass Frog prepare to record bad debt expense for 2018 (related to part 2)?
4. Now assume the company estimates bad debts based on the aging method. Estimate the ending balance in the allowance for doubtful accounts at December 31, 2018 using the information below:
AGE CLASS % UNCOLLECTIBLE AMOUNT
Not Past Due 1% $220,000
1-30 Days Past Due 5% $110,000
31-60 Days Past Due 10% $40,000
61-90 Days Past Due 25% $30,000
Over 90 Days Past Due 50% $10,000
1. What journal entry would Grass Frog prepare to record bad debt expense for 2018 (related to part 4)?
2. What is the net realizable value of the receivables to be reported on the balance sheet at year-end (assuming aging method was used by Grass Frog)?
Answer:
Grass Frog Company
1. The balance of Accounts Receivable at December 31, 2018 is:
= $410,000.
2. The amount that the company will record as bad debt expense for 2018 is:
= $74,000.
3. Journal Entry to record the bad debt expense for 2018:
Debit Bad Debt Expense $74,000
Credit Allowance for Doubtful Accounts $74,000
To record the bad debt expense for the year.
4. The ending balance in the allowance for doubtful accounts at December 31, 2018 is:
= $24,200
a. Journal Entry to record bad debt expense:
Debit Bad Debt Expense $14,200
Credit Allowance for Doubtful Accounts $14,200
To record the bad debt expense for the year.
b. The net realizable value of the receivables to be reported on the balance sheet at year-end (assuming aging method was used by Grass Frog) is:
Accounts receivable balance $410,000
Allowance for doubtful accounts (24,200)
Net realizable value = $385,800
Explanation:
a) Data and Calculations:
December 31, 2018:
Accounts Receivable
January 1, 2018 $305,000
Sales (all on credit) 2,100,000
Cash collections during 2018 (1,980,000)
Accounts written off during 2018 (15,000)
Dec. 31, 2018 balance $410,000
Allowance for doubtful accounts,
Accounts written off during 2018 $15,000
December 31, 2018 (4%) 84,000
January 1, 2018 (credit) (25,000)
Bad Debts Expense 74,000
AGE ANALYSIS:
AGE CLASS % UNCOLLECTIBLE ALLOWANCE
AMOUNT
Not Past Due 1% $220,000 $2,200
1-30 Days Past Due 5% $110,000 5,500
31-60 Days Past Due 10% $40,000 4,000
61-90 Days Past Due 25% $30,000 7,500
Over 90 Days Past Due 50% $10,000 5,000
Total $410,0000 $24,200
Accounts written off during 2018 $15,000
December 31, 2018 24,200
January 1, 2018 (credit) (25,000)
Bad Debts Expense 14,200
Nash Company purchased a computer for $8,160 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,020 salvage value. On January 1, 2021, the estimates are revised. Nash now feels the computer will be used until December 31, 2022, when it can be sold for $510. Compute the 2021 depreciation. (Round answer to 0 decimal places, e.g. 45,892.) Depreciation expense, 2021 $
Answer:
$2,397
Explanation:
Straight line method charges a fixed amount of depreciation
Depreciation Charge = (Cost - Residual Value) ÷ Estimated useful life
therefore,
Annual depreciation charge
2019
Depreciation Charge = $1,428
2020
Depreciation Charge = $1,428
2021
Depreciation Charge = ($8,160 - $1,428 - $1,428 - $510) ÷ 2
= $2,397
therefore,
Depreciation expense, 2021 is $2,397
Lucci Inc. is a retailing firm specializing in high-end merchandise. Each of Lucci's stores uses the retail inventory method by applying the average-LCM alternative. The information below pertains to one department within its Scottsdale, Arizona store. You will use this information to determine ending inventory and cost of goods sold for financial reporting purposes. Assume no inventory shrinkage, and a periodic inventory system.
Beginning inventory of merchandise
Cost, $40,000
Retail, $360,000
Purchases during the period
Cost, $1,000,000
Retail, $10,000,000
Transportation in, $50,000
Transportation out, $32,000
Purchase returns
Cost, $20,000
Retail, $196,000
Net additional markups, $800,000
Net markdowns, $500,000
Sales, $9,800,000
Using the information above, compute the amounts to be reported in the financial statements for ending inventory and cost of goods sold for the department. The spreadsheet below has been started for you. Line items have been entered in column A. In columns B and C, enter appropriate amounts as well as intermediate subtotals directly below the amounts leading to the subtotal. Include the cost to retail calculation as well as your two amounts for financial statement reporting. Round the cost to retail ratio to four decimal places and include the "0" preceding the decimal point. Enter 0 where no other entry is appropriate.
A1 lock copy cut paste
A B C
1 Line Item Description Cost Retail
2 Beginning inventory $40,000
3 Purchases
4 Transportation in
5 Purchases returns
6 Net purchases
7 Net additional markups
8 Cost to retail ratio components
9 Net markdowns
10 Sales
11 Ending inventory, retail
12 Set up Calculation
13 Cost to retail ratio
14 Ending inventory, cost
15 Cost of goods sold
Answer:
1 Line item description Cost Retail
2 Beginning inventory 40000 360000
3 Purchases 1000000 10000000
4 Transportation in 50000
5 Purchase returns -20000 -196000
6 Net purchases(3+4+5) 1030000 9804000
7 Net additional markups 800000
8 Cost to retail ratio 1070000 10964000
component(2+6+7)
9 Net markdowns -500000
10 Sales -9800000
11 Ending inventory,retail(8+9+10) 664000
Setup calculation:
Cost to retail ratio = Cost to retail ratio component at cost/Cost to retail ratio component at retail
= 1070000/10964000
= 0.097592
= 9.76%
Ending inventory,cost = Ending inventory,retail*Cost to retail ratio
= 664000*9.76%
= $64806
Cost of goods sold = Sales*Cost to retail ratio
= 9800000*9.76%
= $956480
Lily Company expects the following total sales: Month Sales March $30,000 April $20,000 May $30,000 June $25,000 The company expects 60% of its sales to be credit sales and 40% for cash. Credit sales are collected as follows: 30% in the month of sale, 70% in the month following the sale. The budgeted accounts receivable balance on May 31 is: A. $12,240 B. $12,600 C. $20,400 D. $21,000
Answer:
B. $12,600
Explanation:
"The company expects 60% of its sales to be credit sales and 40% for cash"
Credit sale for May = $30,000 * 60%
Credit sale for May = $18,000
"70% of the credit sale is collected in following month of sale"
Accounts receivables on 31 May = 70% of credit sale for May
Accounts receivables on 31 May = 70% * $18,000
Accounts receivables on 31 May = $12,600
Cooper Company currently uses the FIFO method to account for its inventory but is considering a switch to LIFO before the books are closed for the year. Selected data for the year are:
Merchandise inventory, January 1 $1,430,000
Current assets 3,603,600
Total assets (operating) 5,720,000
Cost of goods sold (FIFO) 2,230,800
Merchandise inventory, December 31 (LIFO) 1,544,400
Merchandise inventory, December 31 (FIFO) 1,887,600
Current liabilities 1,144,000
Net sales 3,832,400
Operating expenses 915,200
1. Compute the current ratio, inventory turnover ratio, and rate of return on operating assets assuming the company continues using FIFO.
2. Repeat part (a) assuming the company adjusts its accounts to the LIFO inventory method.
Answer:
Cooper Company
1. FIFO:
Current ratio
= 3.15
Inventory turnover ratio
= 1.34
Rate of return on operating assets
= 12%
2. LIFO:
Current ratio
= 2.85
Inventory turnover ratio
= 1.73
Rate of return on operating assets
= 12.8%
Explanation:
a) Data and Calculations:
Merchandise inventory, January 1 $1,430,000
Current assets 3,603,600
Total assets (operating) 5,720,000
Cost of goods sold (FIFO) 2,230,800
Merchandise inventory, December 31 (LIFO) 1,544,400
Merchandise inventory, December 31 (FIFO) 1,887,600
Current liabilities 1,144,000
Net sales 3,832,400
Operating expenses 915,200
FIFO
Merchandise inventory, December 31 (FIFO) $1,887,600
Cost of goods sold (FIFO) 2,230,800
Goods available for sale $4,118,400
Merchandise inventory, January 1 1,430,000
Purchases $2,688,400
LIFO:
Goods available for sale $4,118,400
Merchandise inventory, December 31 (LIFO) 1,544,400
Cost of goods sold (LIFO) $2,574,000
Income Statements FIFO LIFO
Net sales $3,832,400 $3,832,400
Cost of goods sold (FIFO) 2,230,800 2,574,000
Gross profit $1,601,600 $1,258,400
Operating expenses 915,200 915,200
Net income $686,400 $343,200
Merchandise inventory, December 31 (LIFO) 1,544,400
Merchandise inventory, December 31 (FIFO) 1,887,600
Difference between FIFO and LIFO = 343,200
FIFO Difference LIFO
Current assets 3,603,600 343,200 3,260,400
Total assets (operating) 5,720,000 343,200 5,376,800
Cost of goods sold (FIFO) 2,230,800 2,574,000
Merchandise inventory, January 1 1,430,000 1,430,000
Merchandise inventory, December 31 1,887,600 1,544,400
Current liabilities 1,144,000 1,144,000
Average inventory 1,658,800 1,487,200
FIFO:
Current ratio = current assets/current liabilities
= $3,603,600/$1,144,000 = 3.15
Inventory turnover ratio = Cost of goods sold/Average Inventory
= $2,230,800/$1,658,800
= 1.34
Rate of return on operating assets = Net income/Total assets * 100
= $686,400/$5,720,000 * 100
= 12%
LIFO:
Current ratio = $3,260,400/$1,144,000
= 2.85
Inventory turnover ratio = $2,574,000/$1,487,200
= 1.73
Rate of return on operating assets = $686,400/$5,376,800 * 100
= 12.8%
The following information should be used to according to the provisions of GAAP (Statement of Cash Flows) and using the following data. Net income $50,000 Provision for bad debts $2,000 Decrease in inventory $1,000 Decrease in accounts payable $2,000 Purchase of new equipment $35,000 Sale of equipment for $10,000 loss $20,000 Depreciation expense $6,000 Repurchase of common stock $13,000 Payment of dividend $4,000 Interest payment $3,000 What is net cash flow from operations
Answer:
Explanation:
The net cash flow from operations, according to the provisions of GAAP on Statement of Cash Flows, is $77,000.
What is the net cash flow from operations?The net cash flow from operations shows the ability of a firm to generate cash from its core business activities.
The net cash flow from operations is computed as the net income from the income statement and adjustments to modify net income from an accrual accounting basis to a cash accounting basis.
Data and Calculations:Net income $50,000
Non-Cash Expenses:
Loss from sale of equipment $20,000
Provision for bad debts $2,000
Depreciation expense $6,000
Changes in working capital:
Decrease in inventory $1,000
Decrease in accounts payable ($2,000)
Cash from operations $77,000
Thus, the net cash flow from operations, according to the provisions of GAAP on Statement of Cash Flows, is $77,000.
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HELP!
You should always emphasize a word in the middle of a sentence.
A.True
B.False
Answer:
false
Explanation:
bbbbbbbbbbbbbbbbb
Prepare a Pareto chart of the possible causes for a student to fail a final examination in a university course.
Vehicles are identified by RFID tags in order to collect bridge tolls. The project manager is considering two different technologies for RFID readers. By sampling two different options, the following data are collected about the accuracy of the readers:
Option 1: 99, 98, 99, 94, 92, 99, 98, 99, 94, 90 Option 2: 98, 97, 97, 97, 98, 98, 97, 97, 98
Calculate the mean, mode, and standard deviation of the two options.
Answer:
Option 1
[tex]\bar x_1 = 96.2[/tex]
[tex]Mode = 99[/tex]
[tex]\sigma_1 = 3.22[/tex]
Option 2
[tex]\bar x_2 = 97.4[/tex]
[tex]Mode = 97[/tex]
[tex]\sigma_2 = 0.499[/tex]
Explanation:
Given
[tex]Option\ 1: 99, 98, 99, 94, 92, 99, 98, 99, 94, 90[/tex]
[tex]Option\ 2: 98, 97, 97, 97, 98, 98, 97, 97, 98[/tex]
Required
The mean, mode and standard deviation of both options
Option 1
Calculate mean
[tex]\bar x = \frac{\sum x}{n}[/tex]
[tex]\bar x_1 = \frac{99+ 98+ 99+ 94+ 92+ 99+ 98+ 99+ 94+ 90}{10}[/tex]
[tex]\bar x_1 = \frac{962}{10}[/tex]
[tex]\bar x_1 = 96.2[/tex]
Calculate mode
[tex]Mode = 99[/tex]
Because it has a frequency of 4 (more than other element of the dataset)
Calculate standard deviation
[tex]\sigma = \sqrt{\frac{\sum(x - \bar x)^2}{n}}[/tex]
[tex]\sigma_1 = \sqrt{\frac{(99-96.2)^2 +.............+(90-96.2)^2}{10}}[/tex]
[tex]\sigma_1 = \sqrt{\frac{103.6}{10}}[/tex]
[tex]\sigma_1 = \sqrt{10.36}[/tex]
[tex]\sigma_1 = 3.22[/tex]
Option 2
Calculate mean
[tex]\bar x = \frac{\sum x}{n}[/tex]
[tex]\bar x_2 = \frac{98+ 97+ 97+ 97+ 98+ 98+ 97+ 97+ 98}{9}[/tex]
[tex]\bar x_2 = \frac{877}{9}[/tex]
[tex]\bar x_2 = 97.4[/tex]
Calculate mode
[tex]Mode = 97[/tex]
Because it has a frequency of 5 (more than other element of the dataset)
Calculate standard deviation
[tex]\sigma_2 = \sqrt{\frac{(98-97.4)^2+..............+ (98-97.4)^2}{9}}[/tex]
[tex]\sigma_2 = \sqrt{\frac{2.24}{9}}[/tex]
[tex]\sigma_2 = \sqrt{0.2489}[/tex]
[tex]\sigma_2 = 0.499[/tex]
Crane Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $144000, the present value of the lease payments discounted at 8%. The first of eight annual lease payments of $21500 due at the beginning of each year of the lease term was received and recorded on July 3, 2021. Crane had purchased the equipment for $113000. What amount of interest revenue from the lease should Crane report in its 2021 income statement
Answer:
$4,900
Explanation:
Calculation to determine What amount of interest revenue from the lease should Crane report in its 2021 income statement
Interest revenue=8%/2*($144000 - $21500)
interest revenue=4%*$122,500
interest revenue = $4,900.
Therefore the amount of interest revenue from the lease should Crane report in its 2021 income statement is $4,900
Lando Calrissian just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $330,000 per year for 25 years beginning today, or receiving one lump-sum amount today. Lando can earn 4% investing this money. At what lump-sum payment amount would he be indifferent between the two alternatives
Answer:
the lump-sum payment amount would he be indifferent between the two alternatives is $5,361,497.79
Explanation:
The computation of the lump-sum payment amount would be shown below:
= Annual cash flow per year × present value of annuity due factor at 4% for 25 years
= $330,000 × 16.246963
= $5,361,497.79
Refer the present value of annuity due factor table for the same
hence, the lump-sum payment amount would he be indifferent between the two alternatives is $5,361,497.79
Marcia, age 28, charges all her groceries on her credit card. Yes,no,Depends and why?
Answer:
The answer is 'depends'.
Explanation:
We don't know her exact reasoning for wanting to use a credit card each time but we don't have enough information to 100% say that she does or she doesn't. It depends on what she's buying, when, and why.
Looking forward to next year, if Digby’s current cash amount is $17,478 (000) and cash flows from operations next period are unchanged from this period and Digby takes ONLY the following actions relating to cash flows from investing and financing activities:
Issues $2,000 (000) of long-term debt
Pays $4,000 (000) in dividends
Retires $10,000 (000) in debt
Which of the following activities will expose Digby to the most risk of needing an emergency loan?
a. Purchases assets at a cost of $25,000 (000)
b. Sells $10,000 (000) of their long-term assets
c. Liquidates the entire inventory
d. Pays a $5.00 per share dividend
Answer:
d
Explanation:
Purchases assets at a cost of $15,000 (000)
Repurchases $10,000 (000) of stock
Issues 100 (000) shares of common stock
Sells $7,000 (000) of long-term assets
Hardaway Fixtures' balance sheet at December 31, 2020, included the following:
Shares issued and outstanding:
Common stock, $1 par $1,080,000
Nonconvertible preferred stock, $50 par 25,000
On July 21, 2021, Hardaway issued a 25% stock dividend on its common stock. On December 12, it paid $75,000 cash dividends on the preferred stock. Net income for the year ended December 31, 2021, was $4,800,000.
Required:
Compute Hardaway's earnings per share for the year ended December 31, 2021.
Answer:
$3.50
Explanation:
Earnings for EPS = $4,800,000 - $75,000
Earnings for EPS = $4,725,000
Weighted Average Outstanding share:
Date Number of shares Weight Weighted Average
01-01-2021 Opening 1,080,000 12/12 1,080,000
21-07-2021 Stock Dividend 270,000 12/12 270,000
(1,080,000*25%)
Total 1,350,000
Earnings per share = Earnings for EPS/Weighted Average Outstanding share
Earnings per share = $4,725,000/1,350,000
Earnings per share = $3.50
Ralph has decided to put $2,400 a year (at the end of each year) into an IRA over his 40 year working life and then retire. What will Ralph have at retirement if the account earns 10 percent compounded annually
Answer:
$1,062,222.13
Explanation:
Calculation to determine What will Ralph have at retirement if the account earns 10 percent compounded annually
Annuity =$2,400
n = 40 years
r = 10%
FVOA=2400*(1+0.1)^40-1/0.1
FVOA=2400∗442.5925557
FVOA=$1,062,222.13
Ralph will have $1,062,223 at retirement
The nine-cell attractiveness-strength matrix provides clear, strong logic for Group of answer choices using both industry attractiveness and business strength measurements in allocating resources and investment capital to a corporation's different businesses. measuring only business strength in allocating resources and investment capital to the different businesses. using both resource fit and product strength measurements in allocating resources and investment capital to its different businesses. concentrating resources in only those business units that are destined for squeezing out the maximum cash flows. concentrating resources to bolster unattractive and competitively weak performers in the corporate portfolio.
Answer:
using both industry attractiveness and business strength measurements in allocating resources and investment capital to a corporation's different businesses.
Explanation:
A nine-cell matrix can be defined as a strategic framework that provides a systematic approach used multi-business corporations to set priority on their investments among the different business units. Thus, it offers strategic implications of an investment by evaluating business portfolios, which are mainly based on business strength and market attractiveness.
Furthermore, the nine-cell industry attractiveness competitive strength matrix is a strategic framework adopted by individuals or managers in order to assist them in deciding which businesses should have low, average, and high priorities in deploying corporate resources.
Hence, the nine-cell attractiveness-strength matrix provides clear, strong logic for using both industry (market) attractiveness and business strength measurements in allocating corporate resources and investment capital to the different businesses owned by a corporation.
How micro and macro economics are interdependent to each other?