a. On December 31, Gina receives a distribution of $140,000 cash in liquidation of her partnership interest. Nothing is stated in the partnership agreement about goodwill. Gina's outside basis for the partnership interest immediately before the distribution is $90,000. (1) How much is Gina's recognized gain from the distribution

Answers

Answer 1

Answer:

some information is missing in this question:

the fair market value of Gina's interest int he partnership = $480,000 x 25% = $120,000

Gina is receiving $140,000 in cash, therefore, $20,000 can be considered goodwill.

Since Gina's outside basis is $90,000 (= $75,000 of cash + $15,000 of capital assets), she cannot claim any capital gain, instead she must declare an ordinary gain from the distribution (ordinary income) = $140,000 - $90,000 = $50,000.

The partnership can deduct Gina's gain ($50,000) since no part of it included property payment.


Related Questions

You are CEO of Rivet Networks, maker of ultra-high performance network cards for gaming computers, and you are considering whether to launch a new product. The product, the Killer X3000, will cost $900,000 to develop up front (year 0), and you expect revenues the first year of $800,000, growing to $1.5 million the second year, and then declining by 40% per year for the next 3 years before the product is fully obsolete. In years 1 through 5, you will have fixed costs associated with the product of $100,000 per year, and variable costs equal to 50% of revenues.
A. What are the cash flows for the project in years 0 through 51
B. Plot the NPV profile for this nvestment using discount rates from 0% to 50% in 5% increments.
C. What is the project's NPV if the project's cost of capital is 10%?
D. Use the NPV profile to estimate the cost of capital at which the project would become unprofitable; that is, estimate the project's IRR or calculate it using the data.
Initial investment $900,000
Revenues vear 1 $800,000
Revenues vear 2 $1,500,000
Revenues decline years 4000
Fixed costs vears 1-5 $100,000
Variable costs 50%

Answers

Answer:

F= (900,000)

F1= 300,000

F2 = 650,000

F3 = 350,000

F4 = 170,000

F5 = 62,000

NPV at 10% $327487

IRR 20.587%

Explanation:

F0 -900,000

        revenues     variable cost   fixed cost   net flow

F1  800,000 -400000  -100,000 = 300,000

F2  1,500,000 -750000  -100,000 =  650,000

F3  900000 -450000  -100,000 =  350,000

F4  540000 -270000  -100,000 =    170,000

F5  324000 -162000  -100,000 =     62,000

NPV at 10%:

For each cashflow, we apply the discount of a lump sum formula

[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]

And add them together for the net present value

[tex]\left[\begin{array}{ccc}Year&$cashflow&PV\\0&-900,000&-900,000\\1&300,000&272,727\\2&650,000&537,190\\3&350,000&262,960\\4&170,000&116,112\\5&62,000&38,497\\Total&&327487\\\end{array}\right][/tex]

We solve for the IRR using the excel IRR formula

we list the cashflow and use IRR to select them.

Use the information about Billy's Burgers to answer the following question(s):

Billy's Burgers

Figures in​ $ millions

Income Statement 2010 Balance Sheet 2010
Net Sales 246.0 Assets
Costs exc. Dep. 187.0 Cash 8.0
EBITDA 59.0 Accts. Rec. 21.0
Depreciation 17.2 Inventories 23.0
EBIT 41.8 Total Current Assets 52.0
Interest 12.0 Net PP​&E 145.0
Pretax Income 29.8 Total Assets 197.0
Taxes 10.4
Net Income 19.4 Liabilities and Equity Accts.
Payable 18.0 LongTerm Debt 82.0
Total Liabilities 100.0 Total​ Stockholders' Equity 97.0
Total Liabilities and Equity 197.0

Required:
Using the percent of sales method, and assuming 20% growth in sales, estimate Billy's Burgers' Accounts Receivable for 2011.

a. $21.0 million
b. $18.0 million
c. $25.2 million
d. $21.6 million

Answers

Answer:

c. $25.2 million

Explanation:

Billy's Burgers' Accounts receivable 2011 = Accounts receivable 2010 *(1+Growth rate)

Billy's Burgers' Accounts receivable 2011 = $21,000,000 * (1+0.20)

Billy's Burgers' Accounts receivable 2011 = $21,000,000 * (1.20)

Billy's Burgers' Accounts receivable 2011 = $25,200,000.

Sheridan Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Sheridan accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2020 are as follows: Last payroll was paid on 12/26/20, for the 2-week period ended 12/26/20. Overtime pay earned in the 2-week period ended 12/26/20 was $24000. Remaining work days in 2020 were December 29, 30, 31, on which days there was no overtime. The recurring biweekly salaries total $444000.
Assuming a five-day workweek, Sheridan should record a liability at December 31, 2020 for accrued salaries of:_________.
a. $266400
b. $290400
c. $133200
d. $157200

Answers

Answer:

d. $157,200

Explanation:

Calculation for the amount that Sheridan should record a liability at December 31, 2020 for accrued salaries

Liability for accrued salary=$24,000 + ($444,000 ÷ 10 days × 3)

Liability for accrued salary=$24,000+$133,200

Liability for accrued salary= $157,200

Therefore the amount that Sheridan should record a liability at December 31, 2020 for accrued salaries will be $157,200

Alternative price indexes
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing the_____using______by the_____using_____and multiplying by 100. However, the CPI reflects only the prices of all goods and services.
Indicate whether each scenario will affect the GDP deflator or the CPI for the United States.
Scenario Shows up
in the...
GDP Deflator
Index CPI
An increase in the price of a Chinese-
made phone that is popular among
U.S. consumers.
A decrease in the price of a Treewood
Equipment feller buncher, which is a
commercial forestry machine made in
the U.S. but not bought by U.S. consumers.

Answers

Answer and Explanation:

The consumer price index refers to an index in which the prescribed market cost of goods & services by the prices years from the base year prices of the prescribed market basket and then it is multiplied by 100.

But the Gross Domestic Inflator would be represented when the all types of prices of goods and services generated domestically

An increase in the price refelected the GDP deflator

And, the decrease in the price of treewood represents CPI

Firms often seek to borrow money to expand their capital stock, and the price they pay for the money is the interest rate. What happens to quantity of money demanded if the interest rate increases

Answers

Answer:

When interest rate rises, the quantity of money demanded reduces

Explanation:

As interest rate increases firms seeking to borrow money for capital stock expansion are likely not going to go ahead with it. The reason is simply because, interest rate and money demanded have an inverse relationship. As interest rate rises money demanded falls because it means that for any amount of money borrowed the interest rate attached to it is higher making the cost of borrowing heavier on the borrower.

The technique recommended by the text to organize an analysis of external strategic factors is called

Answers

you know you can find the answer on google

Assume Merck (MRK) just announced that its next dividend will be $2, paid one year from now (you just missed the prior annual dividend). You expect the dividend will grow (after the $2 dividend) by 3% per year forever. Your required return is 10%. What are you willing to pay for a share of Merck stock

Answers

Answer:

$28.57

Explanation:

Current price = D1/(Required return-Growth rate)

D1 (Next dividend) = $2

Required return = 10% = 0.1

Growth rate = 3% = 0.03

Current price = $2/(0.1-0.03)

Current price = $2 / 0.07

Current price = $28.57143

Current price = $28.57

Hence, i will be willing to pay $28.57 for a share of Merck stock.

Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is reliable and maintains a constant lead time of 7 days. The cost of placing an order is $17 and the cost of holding inventory is $0.40 per unit per year. There are no stock-out costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over 358 days of the year.
Your goal here is to find the order quantity and reorder point to satisfy a 73 percent probability of not stocking out during the lead time.
a. To manage inventory, the company is using
Continuous review system
Periodic review system
b. Find the order quantity. (Round your answer to the nearest whole number.)
Order quantity books
c. Find the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)
Reorder point

Answers

Answer:

A. Continuous review system

B. Order quantity = 2,049 Books

C. Reorder point=987

Explanation:

a. In order To manage inventory, the company is using what is called Continuous review system

b. Calculation to find the order quality

Using this formula

Order quantity = √((2DS)/H)

Let plug in the morning

Order quantity=√ ((2 x 49,404 x 17)/0.40)

Order quantity = 2,049 Books

(138*358=49,404)

C. Calculation for reorder point

First step is to find the σL

73 % S.L. - z = 0.613

Using this formula to find the σL

σL = (Lσ^2)

Let plug in the formula

σL=√(7(13)^2)

σL= 34.39

Second step is to find the Reorder point using this formula

R = d bar(L) + zσL

Let plug in the formula

Reorder point = (138)(7) + 0.613(34.39)

Reorder point = 966+21

Reorder point=987

Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2019, Bigham sold the following customer contracts:
Length of contract Total Proceeds
12 months $40,000
24 months $80,000
Determine the income to be recognized in taxable income in 2019 and 2020.
Length of Contract 2019 Income 2020 Income
12 months $ $
24 months $ $

Answers

Answer: See explanation

Explanation:

Length of contract: 12 months

Income recorded in 2019:

= $40,000 × 6/12

= $40,000 × 1/2

= $20,000

Income recorded in 2020:

= $40,000 × 6/12

= $40,000 × 1/2

= $20,000

Length of contract: 24 months

Income recorded in 2019:

= $80,000 × 6/24

= $80,000 × 1/4

= $20,000

Income recorded in 2020:

= $80,000 × 18/24

= $80,000 × 3/4

= $60,000

Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows:

Job 201 $4,280
Job 202 2,140
Job 203 1,690
Job 204 3,140

Factory supervision 1,460 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $22 per direct labor hour. The direct labor rate is $15 per hour. If required, round final answers to the nearest dollar.

Required:
a. Journalize the entry to record the factory labor costs.
b. Journalize the entry to apply factory overhead to production for November.

Answers

Answer:

Part a.

Work In Process : Job 201 $64,200 (debit)

Work In Process : Job 202 $32,100 (debit)

Work In Process : Job 203 $25,350 (debit)

Work In Process : Job 204 $47,100 (debit)

Salaries Payable $168,750 (credit)

Part b.

Work In Process : Job 201 $94,160 (debit)

Work In Process : Job 202 $47,080 (debit)

Work In Process : Job 203 $37,180 (debit)

Work In Process : Job 204 $69,080 (debit)

Overheads $168,750 (credit)

Explanation:

Calculation of Labor Cost :

Job 201  = 4,280 hours × $15 = $64,200

Job 202 = 2,140 hours × $15  = $32,100

Job 203 = 1,690 hours × $15  = $25,350

Job 204 = 3,140 hours × $15  = $47,100

Application of overhead to jobs :

Job 201  = 4,280 hours × $22 = $94,160

Job 202 = 2,140 hours × $22  = $47,080

Job 203 = 1,690 hours × $22   = $37,180

Job 204 = 3,140 hours × $22 = $69,080

Masterson, Inc., has 4.1 million shares of common stock outstanding. The current share price is $84, and the book value per share is $11. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, has a coupon rate of 5.1%, and sells for 98% of par. The second issue has a face value of $50 million, has a coupon rate of 5.60%, and sells for 108% of par. The first issue matures in 20 years, the second in 12 years. The most recent dividend was $3.95 and the dividend growth rate is 5 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 21 percent. What is the company’s WACC?

Answers

Answer:

The answer is "8.37%".

Explanation:

[tex]\text{MV of equity} = \text{equity price} \times \text{number of outstanding shares}[/tex]

                     [tex]=84 \times 4100000\\\\=344400000[/tex]

[tex]\text{MV of Bond1}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}[/tex]

                      [tex]=1000 \times 70000 \times 0.98 \\\\=68600000[/tex]

[tex]\text{MV of Bond2}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}[/tex]

                      [tex]=1000 \times 50000 \times 1.08 \\\\=54000000[/tex]

[tex]\text{MV of firm} = \text{MV of Equity} + \text{MV of Bond1}+ \text{MV of Bond 2}[/tex]

                  [tex]=344400000+68600000+54000000\\\\=467000000[/tex]

[tex]\text{Weight of equity W(E)} = \frac{\text{MV of Equity}}{\text{MV of firm}}[/tex]

                                     [tex]= \frac{344400000}{467000000}\\\\=0.7375[/tex]

[tex]\text{Weight of debt W(D)}= \frac{\text{MV of Bond}}{\text{MV of firm}}[/tex]

                                  [tex]= \frac{122600000}{467000000}\\\\=0.2625[/tex]

Equity charges

By DDM.  

[tex]\text{Price = new dividend} \times \frac{(1 + \text{rate of growth})}{( \text{Equity expense-rate of growth)}}[/tex]

[tex]84 = 3.95 \times \frac{(1+0.05)}{(\text{Cost of equity}- 0.05)}\\\\84 = 3.95 \times \frac{(1.05)}{(\text{Cost of equity} - 0.05)}\\\\84 = \frac{4.1475}{ (\text{Cost of equity} - 0.05)}\\\\\text{Cost of equity} -0.05 = \frac{4.1475}{84}\\\\\text{Cost of equity} -0.05 = 0.049375\\\\\text{Cost of equity} = 0.049375 + 0.05\\\\\text{Cost of equity} = 0.099375 \\\\\text{Cost of equity} \% = 9.9375 \% \ \ \ or \ \ \ 9.94 \% \\\\[/tex]

Debt expenses  

Bond1

[tex]K = N \times 2 \\\\[/tex]

[tex]Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}[/tex]

[tex]k=1\\\\K =20 \times 2\\\\980 = \sum [ \frac {(5.1 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] + \frac{1000}{(1 + \frac{YTM}{200})}^{20 \times 2}\\\\k=1\\\\\ YTM1 = 5.2628923903\\\\Bond2\\[/tex]

[tex]K = N \times 2[/tex]

[tex]Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}[/tex]

[tex]k=1\\\\K =12 \times 2\\\\[/tex]

[tex]1080 =\sum [\frac{(5.6 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] +\frac{1000}{(1 +\frac{YTM}{200})^{12 \times 2}} \\\\k=1\\\\YTM2 = 4.72\\\\[/tex]

[tex]\text{Company debt costs} = YTM1 times \frac{(MV \ bond1)}{(MV \ bond1+MV \ bond2)}+YTM2 \times \frac{(MV \ bond2)}{(MV \ bond2)}\\\\[/tex]

The cost of the debt for the company:

[tex]= 5.2628923903 \times \frac{(68600000)}{(68600000+54000000)}+4.72 \times \frac{(68600000)}{(68600000+54000000)}\\\\[/tex]

Business debt cost=[tex]5.02 \% \\\\[/tex]

after taxation cost of debt:  

[tex]= \text{cost of debt} \times (1- tax \ rate)\\\\= 5.02 \times (1-0.21)\\\\= 3.9658\\\\[/tex]

[tex]WACC= \text{after debt charges} \times W(D)+equity cost \times W(E) \\\\[/tex]

            [tex]=3.97 \times 0.2625+9.94 \times 0.7375 \\\\ =8.37 \% \\\\[/tex]

Budgeted income amount $25.00
Actual amount $17.50
Dollar variance
Percent variance
F or U

Answers

Answer:

$7.50 and 30% U

Explanation:

Dollar variance is budgeted amount minus actual amount

=$25- $17.50

=$7.50

Percent variance

=$7.50/$25 x 100

=0.3 x 100

=30% unfavorable

On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.
Sept. 6 Purchased with cash 80 calculators at $20 each from Guthrie Co.
Sept. 9 Paid freight of $80 on calculators purchased from Guthrie Co.
Sept. 10 Returned 3 calculators to Guthrie Co. for $63 cash (including freight) because they did not meet specifications.
Sept. 12 Sold 26 calculators costing $21 (including freight) for $31 each on account to Lee Book Store, terms n/30.
Sept. 14 Granted credit of $31 to Lee Book Store for the return of one calculator that was not ordered.
Sept. 20 Sold 30 calculators costing $21 for $32 each on account to Orr's Card Shop, terms n/30.
Journalize the September transactions.

Answers

Answer and Explanation:

The journal entries are shown below:

Inventory   $1,600  (80 × $20)

         To Accounts Payable $1,600

(Being inventory purchased on account)

Inventory $80  

     To Cash $80

(Being the freight charges is paid)  

Accounts Payable $63  

       To  Inventory $63  

(being returned inventory is recorded

Accounts Receivable $806 (26 × $31)

         To Sales Revenue   $806  

(Being sale of calculators on account is recorded)    

Cost of Goods Sold $546  (26 × $21)

      To  Inventory  $546  

(being cost of calculators sold is recorded)    

Sales Returns and Allowances $31  

           To Accounts Receivable $31  

(Being return of calculator that is recorded)  

Inventory $31  

      Cost of Goods Sold $31

(Being cost of calculators returned is recorded)    

Accounts Receivable  $960  (30 × $32)

         To Sales Revenue    $960  

(Being sale of calculators on account is recorded)    

Cost of Goods Sold $630  (30 × $21 )

         To Inventory    $630  

(Being cost of calculators sold is recorded)  

If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:

Answers

Answer:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Explanation:

If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

For example:

Total estimated overhead= $150,000

Allocation base= direct labor hours

Estimated Total number of direct labor hours= 10,000

Predetermined manufacturing overhead rate= 150,000/10,000

Predetermined manufacturing overhead rate= $15 per direct labor hour

Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows.

Work in Process, May 1 (54,000 units, 100% complete for direct materials, 35% complete with respect to conversion costs; includes $78,500 of direct material cost; $42,050 of conversion costs).

Units started in May 233,000
Units completed in May 208,000

Work in Process, May 31 (79,000 units, 100% complete for direct materials; 15% complete for conversion costs).

Costs incurred in May

Direct materials $391,440
Conversion costs $401,900

Required:
If Pitt Enterprises uses the FIFO method of process costing, compute the cost per equivalent unit for direct materials and conversion costs respectively for May.

Answers

Answer:

cost per equivalent unit : materials = $1.37  and conversion costs = $1.78.

Explanation:

Please note that we have to use FIFO costing method

Calculation of the Equivalent Units of Production with respect to Materials and Conversion Costs

1. Raw Materials

To finish Beginning Work In Process (54,000 × 0%)                         0

Started and Completed ((233,000 - 54,000) × 100%)                  179,000

Ending Work In Process (79,000 × 100%)                                      79,000

Equivalent Units of Production with respect to Materials           258,000

1. Conversion Cost

To finish Beginning Work In Process (54,000 × 65%)                   35,100

Started and Completed ((233,000 - 54,000) × 100%)                  179,000

Ending Work In Process (79,000 × 15%)                                          11,850

Equivalent Units of Production with respect to Conversion       225,950

Calculation of the cost per equivalent unit for direct materials and conversion costs.

Unit Cost = Current Period Costs ÷ Equivalent units of production

1. Raw Materials

Unit Cost = $391,440 ÷ 258,000

                = $1.37

2. Conversion Cost

Unit Cost = $401,900 ÷ 225,950

                = $1.78

Post the journal entries to the​ T-accounts, using transaction dates as posting references in the ledger accounts.

Jul.
1. Yardley contributed $68,000 cash to the business in exchange for common stock.
5. Paid monthly rent on medical equipment, $510.
9. Paid $16,000 cash to purchase land to be used in operations.
10. Purchased office supplies on account, $1 ,600.
19. Borrowed $26,000 from the bank for business use.
22. Paid $1 , 100 on account.
28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.
31. Revenues earned during the month included $6,300 cash and $5,300 on account.
31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.
31. The business received $1 ,340 for medical screening services to be performed next month.
31. Paid cash dividends of $6,900.

Answers

Answer:

July 1. Yardley contributed $68,000 cash to the business in exchange for common stock.

Dr cash 68,000

    Cr common stock 68,000

July 5. Paid monthly rent on medical equipment, $510.

Dr rent expense 510

    Cr cash 510

July 9. Paid $16,000 cash to purchase land to be used in operations.

Dr land 16,000

    Cr cash 16,000

July 10. Purchased office supplies on account, $1 ,600.

Dr office supplies 1,600

    Cr accounts payable 1,600

July 19. Borrowed $26,000 from the bank for business use.

Dr cash 26,000

    Cr notes payable 26,000

July 22. Paid $1,100 on account.

Dr accounts payable 1,100

    Cr cash 1,100

July 28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.

Dr advertising expense 250

    Cr accounts payable 250

July 31. Revenues earned during the month included $6,300 cash and $5,300 on account.

Dr cash 6,300

Dr accounts receivable 5,300

    Cr service revenue 11,600

July 31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.

Dr wages expense 1,900

Dr rent expense 1,400

Dr utilities expense 600

    Cr cash 3,900

July 31. The business received $1 ,340 for medical screening services to be performed next month.

Dr cash 1,340

    Cr unearned revenue 1,340

July 31. Paid cash dividends of $6,900.

Dr dividends 6,900

    Cr cash 6,900

cash

              debit                    credit

July 1      68,000

July 5                                  510

July 9                                  16,000

July 19    26,000

July 22                                1,100

July 31    6,300

July 31                                  3,900

July 31    1,340

July 31                                 6,900

               101,640

accounts receivable

              debit                    credit

July 31    5,300

office supplies

              debit                    credit

July 10   1,600

land

              debit                    credit

July 9     16,000

accounts payable

              debit                    credit

July 10                                1,600

July 22   1,100

July 28                              250    

                                          750

unearned revenue

              debit                    credit

July 31                                1,340

notes payable

              debit                    credit

July 19                                26,000

common stock

              debit                    credit

July 1                                  68,000

service revenue

              debit                    credit

July 31                                11,600

rent expense

              debit                    credit

July 5     510

July 31    1,400

advertising expense

              debit                    credit

July 28   250

wages expense

              debit                    credit

July 31   1,900

utilities expense

              debit                    credit

July 31    600

dividends

              debit                    credit

July 31    6,900

What term means an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of​ use? A. deflation B. hyperinflation C. stagflation D. maginflation

Answers

Answer:

hyperinflation

Explanation:

Hyperinflation is a term in economics that denotes an out-of-control, rise in prices of goods and services . When the inflation rate is rapidly rising, say by more than 50% per month, then it is a case of hyperinflation.

Hence, hyperinflation is an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of​ use.

Example 1: Alex began putting money in his 401(k) in his early 20s; consequently, he will have financial security when he retires.
Example 2: Louise is the most qualified candidate for the position; therefore, we should hire her.

Identify the correctly written compound sentences. Check all that apply.

a. All e-mail, even once deleted, is retrievable and, therefore, you should avoid sending sensitive information in an e-mail.
b. E-mail facilitates collaboration between people in remote locations; however, when collaboration requires the exchange of large data files, it is often easier to use web-based collaboration software.
c. Many people prefer e-mail over phone conversations, they leave a written record.
d. E-mail can be an efficient way to communicate, and it makes communicating across time zones much easier.

Answers

Answer:

b. E-mail facilitates collaboration between people in remote locations; however, when collaboration requires the exchange of large data files, it is often easier to use web-based collaboration software.

d. E-mail can be an efficient way to communicate, and it makes communicating across time zones much easier.

Explanation

Sentence B is correct because it employs the use of a semicolon to separate two independent clauses. The use of the conjunction, however, helps to separate two sentences that have opposite connotations.

Sentence D is correct because the conjunction, and, was used appropriately to add a second thought to the sentence. The comma was also used correctly as it spliced the sentence and was immediately followed by the conjunction, and.

The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:

Purchased $400,000 of materials.
Used $362,100 of direct materials in production.
Incurred $104,200 of direct labor wages.
Applied factory overhead at a rate of 42% of direct labor cost.
Transferred $483,700 of work in process to finished goods.
Sold goods with a cost of $460,300.
Revenues earned by selling bikes, $761,600.
Incurred $154,800 of selling expenses.
Incurred $75,300 of administrative expenses.

Required:
Prepare the income statement for Rushmore Biking for the month ending February 28

Answers

Answer: See attachment

Explanation:

Note that in the attachment,

Gross profit was the difference between the revenue and the cost of goods sold. This is:

= 761600 - 460300

= 301300

The selling and administrative expenses was the addition of the selling expense and the administrative expenses.

Check the attachment for further details.

Tommy is from a small town and quit high school to get married. He and his wife have five kids, and his wife stays home with the children. Tommy is a hard worker and strives to provide for his family, although his skills are limited. Tommy has been a butcher for his entire career. He has been with his present company, a large retail grocer, for the past six years performing the same job. There are twelve people in the meat department, and each one specializes in cutting certain types of meat. Tommy's job is to cut ribeye steaks. Cutting ribeye steaks is very precise and requires holding and using a knife in the same way every day. This requirement has started to cause Tommy pain in his right hand. Although Tommy still likes his work, he is getting a little bored of the repetition and is bothered by the pain.

The quality of Tommy’s work has not suffered, but the store managers can tell that he is getting bored. What could they do to keep him better engaged?

a. Purchase special ergonomic mats to help with the pain associated with standing on the hard floor every day.
b. Motivate Tommy by giving him feedback about how skilled he is in cutting ribeye and explain that customers visit the store for his custom steaks.
c. Offer Tommy more money because he is so good at cutting meat.
d. Cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa.
e. Administer a work personality quiz to Tommy to see if there is another area in the store where he could move to, such as the produce department.

Answers

Answer: d. Cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa.

Explanation:

Since the quality of Tommy’s work has not suffered, but the store managers can tell that he is getting bored, the thing that could be done to keep him better engaged is to cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa. Cross training helps the workers in the company appreciate the workers of others in other department and shows workers flexibility.

free brainlyest. first answer gets it

Answers

Answer:

adasdw

Explanation:

Answer:

yeah letttttsssss goooooo

Assume a par value of $1,000. Caspian Sea plans to issue a 9.00 year, semi-annual pay bond that has a coupon rate of 8.04%. If the yield to maturity for the bond is 7.79%, what will the price of the bond be

Answers

Answer:

$1,015.96

Explanation:

The Price of the Bond (PV) can be calculated as follows :

Fv = $1,000

Pmt = ($1,000 × 8.04%) ÷ 2 = $40.20

n = 9 × 2 = 18

p/yr = 2

i = 7.79%

pv = ?

Using a financial calculator to input the values as shown above, the Price of the Bond (PV) is $1,015.96

Brief Exercise 14-08 Ziegler Corporation reports net income of $380,000 and a weighted-average of 200,000 shares of common stock outstanding for the year. Compute the earnings per share of common stock.

Answers

Answer:

$1.9

Explanation:

The computation of the earning per share is shown below:

Earning per share is

= Net income ÷ Weighted number of oustanding shares

= $380,000 ÷ 200,000 shares

= $1.9

By simply divide the net income from the Weighted number of oustanding shares, the earning per share could be determined

Hence, the earning per share is $1.9

Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $12,270. The bank statement indicated a balance of $15,440 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: Checks outstanding totaled $5,560. A deposit of $5,790, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $3,010 on a note left for collection. The face of the note was $2,860. A check for $800 returned with the statement had been incorrectly recorded by Stone Systems as $880. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account. A check drawn for $400 had been incorrectly charged by the bank as $40. Bank service charges for July amounted to $50.

Required:
Prepare a bank reconciliation.

Answers

Answer: Please see below for the reconciliation of bank and book balance for Stone systems as $15,310

Explanation:

Bank Reconciliation Statement  for July 31 , 20Y5  for Stone Systems

Particulars                                 Amount

Balance on bank statement       $15,440

Additions:  

Outstanding Deposits                       $5,790                        

Deductions:  

Outstanding checks                 $5,560

Bank Error (400-40)                        $360                                        

Adjusted bank balance            $15,310

Balance in books                          $12,270.                        

Additions:  

Note Collection plus interest    $3,010  

Incorrect recording of check

($880-$800)                                    $80  

Deductions

Bank Service charges                    $50  

Adjusted book balance       $15,310

Consider the following scenario:
Cold Goose Metal Works Inc.’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year.

1. Cold Goose is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT).
2. The company’s operating costs (excluding depreciation and amortization) remain at 70.00% of net sales, and its depreciation and amortization expenses remain constant from year to year.
3. The company’s tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT).
4. In Year 2, Cold Goose expects to pay $300,000 and $2,306,475 of preferred and common stock dividends, respectively.
Complete the Year 2 income statement data for Cold Goose, then answer the questions that follow. Round each dollar value to the nearest whole dollar.
Cold Goose Metal Works Inc.
Income Statement for Year Ending December 31
Year 1 $30,000,000 21,000,000 1,200,000 $7,800,000$
Year 2 (Forecasted)
Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Less: Taxes (40%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings 1,200,000 780,000 $7,020,000 2,808,000 $4,212,000s 300,000 $3,912,000 1,895,400 $1,605,525 $2,519,025
Given the results of the previous income statement calculations, complete the following statements:
In Year 2, if Cold Goose has 25,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive____________ ▼ in annual dividends
If Cold Goose has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from __________ in Year 1 to in ________ Year 2
Cold Goose's before interest, taxes, depreciation and amortization (EBITDA) value changed from _______ in Year 1 to in ______ Year 2
It is __________▼ to say that Cold Goose's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $1,605,525 and $2,519,025, respectively. This is because ▼ of the items reported in the income statement involve payments and receipts of cash

Answers

Answer:

Cold Goose Metal Works Inc.

1. Completion of the Year 2 Income Statement for Cold Goose:

Cold Goose Metal Works Inc.

Income Statement for Year Ending December 31                    

                                                                                 Year 1                  Year 2    

                                                                                                     (Forecasted)

Net sales                                                       $30,000,000       $37,500,000

Less: Operating costs, except depreciation

 and amortization                                           21,000,000          28,125,000

Less: Depreciation & amortization expenses 1,200,000            1,200,000

Operating income (or EBIT)                           $7,800,000          $8,175,000

Less: Interest expense                                       780,000            1,226,250

Pre-tax income (or EBT)                                $7,020,000         $6,948,750

Less: Taxes (40%)                                           2,808,000            2,779,500

Earnings after taxes                                      $4,212,000          $4,169,250

Less: Preferred stock dividends                       300,000               300,000

Earnings for common shareholders            $3,912,000          $3,869,250

Less: Common stock dividends                     1,895,400            2,306,475

Contribution to retained earnings               $1,605,525          $1,562,775

2. Given the results of the previous income statement calculations, complete the following statements:

In Year 2, if Cold Goose has 25,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive____$12________ ▼ in annual dividends .

If Cold Goose has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from ____$19.56______ in Year 1 to in ___$19.35_____ Year 2 .

Cold Goose's before interest, taxes, depreciation and amortization (EBITDA) value changed from _$21,000,000______ in Year 1 to in _$28,125,000_____ Year 2 .

It is __wrong________▼ to say that Cold Goose's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $1,605,525 and $1,562,775 ($2,519,025), respectively. This is because not all ▼ of the items reported in the income statement involve payments and receipts of cash

Explanation:

a) Data and Calculations:

Cold Goose Metal Works Inc.

Income Statement for Year Ending December 31                    

                                                                                 Year 1                  Year 2    

                                                                                                     (Forecasted)

Net sales                                                       $30,000,000       $37,500,000

Less: Operating costs, except depreciation

 and amortization                                           21,000,000          28,125,000

Less: Depreciation & amortization expenses 1,200,000            1,200,000

Operating income (or EBIT)                           $7,800,000          $8,175,000

Less: Interest expense                                       780,000            1,226,250

Pre-tax income (or EBT)                                $7,020,000         $6,948,750

Less: Taxes (40%)                                           2,808,000            2,779,500

Earnings after taxes                                      $4,212,000          $4,169,250

Less: Preferred stock dividends                       300,000               300,000

Earnings for common shareholders            $3,912,000          $3,869,250

Less: Common stock dividends                     1,895,400            2,306,475

Contribution to retained earnings               $1,605,525          $1,562,775

b) Forecasts:

1. Sales = $30 million * 1.25 = $37.5 million

2. Operating costs = 75% of sales = $28,125,000 (0.75 * $37.5 million)

3. Interest expense = 15% of EBIT = $1,226,250 (15% * $8,175,000)

4. Taxes = 40% of EBT = $2,779,500 (40% * $6,948,750)

5. Preferred dividend per share = $12 ($300,000/25,000)

6. Earnings per share = $19.56 ($3,912,000/200,000) Year 1 and $19.35       ($3,869,250/200,000) in Year 2

On August 20th, one of your employees comes to you with a vacation request. The employee’s available vacation time expires on September 1st, however she wants to take her vacation between September 20th through the 25th.


She asks you to submit her vacation request to the corporate office for the week prior to September 1st, and wants you to not schedule her for the days between the 20th and 25th, and she wants her "vacation" pay for those days.


Would you do it? Why? or Why Not?

Answers

Answer:

No

Explanation:

Her vacation is expired and therefore invalid. Also she is requesting for a pay during this period which counters Amy form of sympathy for this employee. However, depending on the relationship the employee has with her employer, there might be a compromise especially if the employee really does need the vacation as she may be burned out or may have postponed vacation till expiration for the interest of the company

In 2013, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:
Basic research to develop the technology $ 2,000,000
Engineering design work 680,000
Development of a prototype device 300,000
Acquisition of equipment 60,000
Testing and modification of the prototype 200,000
Legal and other fees for patent application on the new
communication system 40,000
Legal fees for successful defense of the new patent 20,000
Total $ 3,300,000
The equipment will be used on this and other research projects. Depreciation on the equipment for 2013 is $10,000.
During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.
Required:
Prepare correcting entries that reflect the appropriate treatment of the expenditures.
1. Record the correcting entry to expense R&D costs incorrectly capitalized
2. Record the correcting entry to capitalize the cost of equipment incorrectly capitalized as a patent.
3. Record the correcting entry to record depreciation on equipment used in R&D projects.

Answers

Answer:

1. Dec 31

Dr Research and Development Expense $3,180,000

Cr 2013 Patent $3,180,000

2. Dec 31

Dr Equipment $60,000

Cr 2013 Patent $60,000

3. Dec 31

Dr Research and Development Expense $10,000

Cr 2013 Accumulated Depreciation - Equipment $10,000

Explanation:

1. Preparation of the Journal entry to Record the correcting entry to expense

Dec 31

Dr Research and Development Expense $3,180,000

Cr 2013 Patent $3,180,000

(Being To record research and development expense )

Calculation for the Total amount of theresearch and development expense

Basic research to develop the technology $2,000,000

Engineering design work $680,000

Development of a prototype device $300,000

Testing and modification of the prototype $200,000

TOTAL research and development expense $3,180,000

2. Preparation of the journal entry to Record the correcting entry to capitalize the cost of equipment

Dec 31

Dr Equipment $60,000

Cr 2013 Patent $60,000

(Being To correct cost of equipment capitalized to patent)

3. Preparation of the Journal entry to Record the correcting entry to record depreciation on equipment

Dec 31

Dr Research and Development Expense $10,000

Cr 2013 Accumulated Depreciation - Equipment $10,000

(Being To record research and development expens

Selected Information from Balance Sheets (As of Year End for Years 0 and 1)
Year 0 Year 1
Cash 1,000 2,000
Accounts Receivables 1,000 5,000
Inventory 5,000 4,000
Property, Plant and Equipment (net) 12,000 11,000
Accounts Payable 5,000 4,000
Unearned Revenue 2,000 1,000
Bonds Payable 5,000 6,000
Common Stock 3,000 4,000
Retained Earnings 5,000 7,000
Income Statement (Year 1)
Sales 20,000
Costs of Goods Sold (8,000)
Wage Expense (4,000)
Depreciation Expense (2,000)
Loss from PP&E Sale (1,000)
Net Income Before Tax 5,000
Tax Expense (2.000)
Net Income 3.000
In the space provided, prepare the Operating section of the statement of cash flow for Year 1, using the indirect approach.

Answers

Answer:

The Operating Activities section of the Statement of Cash Flow for Year 1:

Net Income                          $3,000

Add non-cash expenses:

Depreciation Expense          2,000

Loss from PP&E Sale             1,000

Operating cash flow                               6,000

Changes working capital                      -5,000

Net cash flow from operating activities 1,000

Explanation:

Changes in working capital items:

                                      Year 0   Year 1    Changes

Accounts Receivables   1,000   5,000       -4,000

Inventory                       5,000   4,000        1,000

Accounts Payable         5,000   4,000      -1,000

Unearned Revenue      2,000    1,000      -1000

Net changes in working capital             -5,000

Sheridan Company sells radios for $50 per unit. The fixed costs are $445000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $65000 and variable costs will be 50% of the selling price. The new break-even point in units is:

Answers

Answer:

Break-even point in units= 2,600

Explanation:

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Fixed costs= $65,000

Contribution margin per unit= 50*0.5= $25

Break-even point in units= 65,000/25

Break-even point in units= 2,600

The adjusted trial balance of Norton Company contained the following information. Assume the tax rate is 25%:

Debit Credit
Sales revenue $390,000
Sales returns and allowances $10,000
Sales discounts 5,000
Cost of goods sold 200,000
Operating expenses 110,000
Interest revenue 8,000
Interest expense 3,000


Required:
Compute income from operations.

a. $175,000
b. $65,000
c. $50,000
d. $70,000

Answers

Answer:

b. $65,000

Explanation:

Particulars                                            Amount

Revenues

Service Revenue                                   $390,000  

Less: Sales Return and allowance       $10,000

Less: Sales Discount                             $5,000  

Net Sales Revenue                                $375,000

Less: Cost of Goods Sold                      $200,000

Gross Profit                                             $175,000

Less: Operating Expenses                     $110,000

Operating Income                                  $65,000

Thus, income from operation is $65,000

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