Answer:
Company's current ratio is 2.4
Explanation:
Current ratio = Current assets / Current liability
Current ratio = 46,880/19,500
Current ratio = 2.404 =2.4
WORKINGS
Current assets:
Account Receivable= 29,500
Office supplies 4,800 (Assuming they are stocks of supplies)
Prepaid insurance 4,680
Cash 7,900
Total current assets=46,880
Current liabilities
Account Payable 13,500
Unearned services revenue 6,000
Total current liability= 19,500
The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes: • Purchased $480,000 of materials. • Used $434,500 of direct materials in production. • Incurred $125,000 of direct labor wages. • Applied factory overhead at a rate of 40% of direct labor cost. • Transferred $578,000 of work in process to finished goods. • Sold goods with a cost of $550,000. • Revenues earned by selling bikes, $910,000. • Incurred $185,000 of selling expenses. • Incurred $90,000 of administrative expenses. a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method. Rushmore Biking Inc.
Answer:
Income statement for Rushmore Biking Inc. for the month ending February 28.
Sales $910,000
Less Cost of Sales ($550,000)
Gross Profit $360,000
Less Expenses
Selling Expenses ($185,000)
Administrative Expenses ($90,000)
Net Income / (loss) $85,000
Explanation:
Perpetual inventory methods keeps the record of inventory cost after every sale.
Thus we were already given the costs associated with the sale of bikes (cost of sales) and there was thus no need to got the longer router of determining this amount using the manufacturing cost schedule.
a newspaper story discussing high profits and low unemployment indicates a strong economy
-true
-false
Answer:
true
Explanation:
If a newspaper story is discussing high profits and low unemployment rates, this indicates a strong economy. An economy would not be stable if big businesses and corporations were not bringing in high profits. In addition, if the unemployment rates were high this would mean that the economy would not be stable, as consumers are an important part of a strong and successful economy.
A foundation was endowed with $15,000,000 in July 2010. In July 2014, $5,000,000 was expended for facilities, and it was decided to provide $250,000 at the end of each year forever to cover operating expenses. The first operating expense is in July 2015, and the first replacement expense in July 2014. If all money earns interest at 5% after the time of endowment, what amount would be available for the capital replacements at the end of every fifth year forever
Answer:
$2,274,639.75
Explanation:
Endowment on July 2010 = $15,000,000
Endowment amount on July 2014 = $15,000,000 (1+0.05)^4 - Expenditure on facilities
= $15,000,000 (1.2155) - $5,000,000
= $18,232,500 - $5,000,000
= $13,232,500
Amount to be set aside for operation expenses = $250,000/0.05 = $5,000,000
Amount available for capital replacement = $13,232,500 - $5,000,000 = $8,232,500
5-years effective interest rate = (1+0.05)^5 - 1 = 0.2763
Annual available for capital replacements every fifth year forever = $8,232,500 (0.2763) = $2,274,639.75
The amount that would be available for the capital replacements at the end of every fifth year forever is $2,274,513.93.
Endowment amount:
Endowment amount=[$15,000,000 (1+0.05)^4]- $5,000,000
Endowment amount=[$15,000,000 (1.21550625)] - $5,000,000
Endowment amount= $18,232,594- $5,000,000
Endowment amount= $13,232,594
Capital replacement:
Capital replacement = $13,232,594- ($250,000/0.05)
Capital replacement = $13,232,594 - $5,000,000
Capital replacement = $8,232,594
Effective interest rate :
Effective interest rate = (1+0.05)^5 - 1
Effective interest rate = (1.05)^5 - 1
Effective interest rate = 0.2762815625
Every Fifth year Capital replacements:
Every Fifth year Capital replacements= $8,232,594 ( 0.2762815625)
Every Fifth year Capital replacements=$2,274,513.93
Inconclusion the amount that would be available for the capital replacements at the end of every fifth year forever is $2,274,513.93.
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Elevators, Inc. does considerable business overseas for high-rise luxury hotels. To speed up the building permit process, it authorized a project manager to pay a government official a "fee" in the amount of $500. It is common practice in the foreign country for government officials to accept a "fee" to expedite processes. In doing so, has Elevators, Inc. broken United States law? Select one
Answer:
No, Elevators, Inc. has not broken the law because payment was made in United States currency.
Explanation:
It operates a substantial business abroad for high-end luxury hotels. It authorized a project manager to "charge" a government official a charge of 500 for speeding up the building permit process. so
Under the law, it is illegal to bribe foreign officials to get business. But there is an exception to "facilitation payments", also known as grease payments made to speed up general government functions. Flexible payments can be used to persuade government officials to perform work that is already being done. Although many have argued that such payments are important for their operations in some areas, such as Asia and Africa, the difference between facility payment and bribery remains unclear.Yes, Elevators, Inc. has broken the law because it has paid a bribe to a foreign government official.
Here, to speed up the building permit process, Elevators, Inc .does authorized the project manager to pay the government official in charge of expediting processes a "fee" in the amount of $500
The $500 is this case is known as a bribe payment and it is illegal in United States.
Therefore, the answer is Yes, Elevators, Inc. has broken the law because it has paid a bribe to a foreign government official.
The missing options includes "Yes, Elevators, Inc. has broken the law because it has paid a bribe to a foreign government official. Yes, Elevators, Inc. has broken the law because the amount paid to the government official was $500. No, Elevators, Inc. has not broken the law because payment was made in United States currency. No, Elevators, Inc. has not broken the law because "grease" payments are permitted under United States law."
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Penny owned 2,000 shares of Dollar Inc. common stock that were purchased in Year 1 at $10.50 per share. Penny received a 5% non-taxable dividend of Dollar common stock in Year 2. In Year 5, the stock split 2 for 1. In the current year Penny sold 800 shares. What is Penny s basis in the 800 shares sold
Answer:
$4,000
Explanation:
Penny's originally purchased 2,000 stocks
she then received 5% stock dividends, which means that her total stocks were 2,100
then the stock split 2 for 1, so Penny had 4,200 stocks in total
stocks basis = $10.50 x 2,000 = $21,000
basis per stock = $21,000 / 4,200 stocks = $5 per stock
basis for 800 stocks sold = $5 x 800 = $4,000
The rest of the world sees problems; Martin sees opportunity. He made money in real estate and lost it when the recession hit. But soon he found another way to earn a living and has become wealthy again. Martin is high in ________.
Answer:
Resilience
Explanation:
In psychology, the term resilience refers to the process of coping with trauma, tragedy or adversity and adapt to it. But it doesn't only refer to the process of adaptation but actually it involves personal growth. In other words, the person grows thanks to the adversity, the person also sees problems as an opportunity to learn and become a better person.
In this example, Martin sees opportunity where the rest of the world sees problems, he made money and lost it but he's wealthy again. We can see that Marty has coped with adversity (the recession) but he adapted to it and he found a way to go through that and earn a living and become wealthy again, thus, this is an example of high resilience.
Transactions for Jayne Company for the month of June are presented below.
June
1 Issues common stock to investors in exchange for $5,000 cash.
2 Buys equipment on account for $1,100.
3 Pays $740 to landlord for June rent.
12 Sends Wil Wheaton a bill for $700 after completing welding work.
Identify the accounts to be debited and credited for each transaction.
Account Debited Account Credited
june 1
june 2
june 3
june 12
Answer:
June 1 , common stocks are issued
Dr Cash 5,000
Cr Common stock 5,000
June 2 , equipment purchased on account
Dr Equipment 1,100
Cr Accounts payable 1,100
June 3 , monthly rent paid
Dr Rent expense 740
Cr Cash 740
June 12, service revenue
Dr Accounts receivable 700
Cr Service revenue 700
Presented here are long-term liability items for Skysong, Inc. on December 31, 2017.
Bonds payable (due 2021) $920,000
Notes payable (due 2019) 84,000
Discount on bonds payable 23,000
Prepare the long-term liabilities section of the balance sheet for Skysong, Inc.
Answer:
Skysong, Inc.
Balance Sheet (Partial)
As on December 31, 2017.
Liabilities
Long Term Liabilities
Bonds payable (due 2021) $920,000
Notes payable (due 2019) $84,000
Discount on bonds payable ($23,000)
Total Long Term Liabilities $981,000
Explanation:
Long term liabilities are all those liabilities that will be paid after one year's time. As Bond Payable is due in 2021 and needs to be paid after 4 years it is classified as long term liabilities. Note Payable is also due in 2019 and needs to be paid after 2 years it is also classified as long term liabilities.
For each of the following situations, what amount would the insurance company pay? (Leave no cells blank - be certain to enter "0" wherever required.) a. Wind damage of $835; the insured has a deductible of $500.
Answer: $335
Explanation:
The Insurance company is to pay the the net amount after the Deductible has been accounted for. If the deductible which is the amount that the person covered pays, is higher than the amount to be covered then the Insurance company pays nothing.
= 835 - 500
= $335
Insurance company pays $335.
A portfolio consists of $15,200 in Stock M and $23,400 invested in Stock N. The expected return on these stocks is 8.90 percent and 12.50 percent, respectively. What is the expected return on the portfolio
Answer:
Portfolio return = 11.08%
Explanation:
The expected return on the portfolio is the weighted average return of all the different stocks making up the portfolio. The weight of the individual stock would be the relative amount invested in each stock as a proportion of the total fund invested.
The expected return can be determined as follows
Weighted of stock A= 15,200/(15200+23400)=0.39
Weight of stock B = 23.400/((15200+23400)= 0.61
Expected return on portfolio = (0.39 ×8.90% ) + (0.61*12.50%)= 11.08 %
A company had inventory on November 1 of 5 units at a cost of $11 each. On November 2, they purchased 18 units at $13 each. On November 6 they purchased 14 units at $16 each. On November 8, 16 units were sold for $46 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale
Answer:
$263
Explanation:
For the computation of the value of the inventory first we need to find out the ending inventory which is shown below:-
Ending inventory = 5 + 18 + 14 - 16
= 21
Value of ending inventory = Nov 1 units × Nov 1 cost) + ((Ending inventory - Nov 1 units) × Nov. 2 cost)
= (5 × $11) + ((21 - 5) × $13)
= 55 + 208
= $263
Therefore for computing the value of ending inventory we simply applied the above formula.
Your crazy uncle left you a trust that will pay you $39,000 per year for the next 30 years with the first payment received one year from today. If the appropriate interest rate is 7.2 percent, what is the value of the payments today
Answer:
$474,386.27
Explanation:
For computing the value of the payment today we need to apply the present value formula i.e to be shown in the attachment below:
Given that,
Future value = $0
Rate of interest = 7.2%
NPER = 30 years
PMT = $39,000
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the present value is $474,386.27
The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $1.5 million. If it would cost $2 million to finish development and make the product, you go ahead and do so. The most you should pay to complete development is $_______million.
Answer:
You should pay "$3" million to complete the development.
Explanation:
The possibility you've already plunged $5 million is therefore no longer important to either calculation, although this money disappears. All counts now would be the small chance of gaining money. When you are investing around $1 million and are able to produce $3 million in funding, users earn $2 million in gross income, so clients will.You seem entitled to say that perhaps a gross of $3 million has indeed been wasted to the venture, and you really should not even have begun it. That would be real, however, if you ever don't invest about $1 million extra you apparently can't have any profits and total damages will have been $5 million.And therefore what counts has never been the overall income, but the incremental benefit that you will receive. In reality, you'd pay approximately $3 million to feel a sense of achievement, not much more, and towards the bottom, you won't increase income.
On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $40,000 on March 31, 2022. The fair value of the merchandise exchanged is $37,600. Esquire views the financing component of this contract as significant. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), any December 31, 2021 interest accrual, and the March 31, 2022 collection. 2. What is the effective interest rate on the note
Answer:
1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), any December 31, 2021 interest accrual, and the March 31, 2022 collection.
June 30, 2021, merchandise sold in exchange for note receivable
Dr Notes receivable 40,000
Cr Sales revenue 37,600
Cr Unearned interest revenue 2,400
December 31, 2021, accrued interests (= $2,400 x 6/9)
Dr Unearned interest revenue 1,600
Cr Interest revenue 1,600
March 31, 2022, note receivable is collected
Dr Cash 40,000
Cr Note receivable 40,000
Dr Unearned interest revenue 800
Cr Interest revenue 800
2. What is the effective interest rate on the note
effective period rate = $2,400 / $37,600 = 6.3829% (for 9 months)
annual rate = 6.3829% x 12/9 = 8.51%
Haag Corp.'s 2021 income statement showed pretax accounting income of $2,500,000. To compute the federal income tax liability, the following 2021 data are provided:
Income from exempt municipal bonds $ 100,000
Depreciation deducted for tax purposes in excess of depreciation deducted for financial statement purposes 200,000
Enacted corporate income tax rate 20%
Required:
Compute the amount that Haag should record for income tax payable.
Answer:
$440,000
Explanation:
The first is to calculate the taxable profits and taxable profit can be calculated as under:
Taxable Profit = Pre-Tax Accounting Profit - Tax allowable expenses not deducted + Tax disallowed expenses deducted previously - Tax disallowed Income added previously - Tax allowed income not added in accounting profits
Here
Pre-Tax Accounting Income is $2,500,000
Municipal Bond Income is the Tax Disallowed Income added previously to accounting profits and must be eliminated from it at $100,000
Depreciation for tax purposes which is in excess of the book depreciation allowed is $200,000 and is Tax allowed Expenses not deducted.
By putting the values, we have:
Taxable Profit = $2,500,000 - $200,000 - $100,000
Taxable Profit = $2,200,000
Now we will compute the income tax payable at 20%
Tax Payable = 20% * $2,200,000 = $440,000
Income tax payable is the compulsory charge to be paid by the individual or company earning incomes over the exempt slab rates. Tax payable is computed on the taxable income, which is computed by deducting the deductible expenses and incomes from the net profit earned during a particular financial period.
The amount of income tax payable by Haag is $440,000
Computation:
The taxable income and the income tax payable are shown in the image attached below.
The procedure to compute the tax liability is:
1. Determine the pre-tax accounting income that is given $2,500,000.
2. Deductions like tax allowable expenses, tax allowed incomes, etc. In this case, the deductions are the exempt income from municipal bonds and the deduction of depreciation amount as it was recorded in the financial statement.
3. The amount determined is taxable income over which the 20% income tax rate will be charged.
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What is the current price for a bond worth $4,000 that has a price quote of 50?
Answer:
$ 2,500 as far as i know.
Explanation:
Which of the following cash flows should be included in the investing Section of the statement of cash
flows under US GAAP? Drag the cash transaction to the appropriate column
ITEMS
CASH RECEIVED IN
SALE OF
EQUIPMENT
CASH PAID TO
PURCHASE
INVENTORY
PURCHASE OF A
PIECE OF LAND
CASH RECEIVED FOR
GOODS SOLD LAST
MONTH
SALE PROCEEDS
FROM DEBT
INVESTMENTS
CASH CONTRIBUTED
BY AN OWNER
PRINCIPAL
RECEIVED FROM
LOANS MADE TO
OTHERS
PAYMENT TO
REACQUIRE SHARES
PROCEEDS FROM
ISSUING STOCKS
INTEREST EARNED
IN CASH
Answer:
Cash flow items to be included in the investing section of the statement of cash flows under US GAAP
1. Cash received in sale of Equipment
2. Purchase of a piece of land
3. Sale proceeds from debt investments
Explanation:
Cash flow from investing activities is a section of the cash flow statement that shows the cash generated or spent relating to investment activities. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets.
Some examples of investment activity from the company’s perspective would include:
Cash outflow from the purchase of an asset (land, building, equipment, etc.).
Cash inflow from the sale of an asset.
Cash outflow from the acquisition of another company.
Cash inflow resulting from a merger.
Cash inflow resulting dividends paid on stock owned in another company.
The Acmeville Metropolitan Bus Service currently charges $0.77 for an all-day ticket, and has an average of 472 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. They must therefore find a way to increase revenues. The bus company is considering increasing the ticket price to $ 0.99 . The marketing department's studies indicate this price increase would reduce usage to 195 riders per day. Calculate the absolute value of the price elasticity of demand for bus tickets using the simple percentage change method. Round your answer to one decimal place.
Answer:
price elasticity of demand = -2.05, price elastic, or in absolute terms 2.05, price elastic
Explanation:
the formula to calculate price elasticity of demand is:
PED = % change in quantity / % change in price
% change in quantity = [(195 - 472) / 472] x 100 = -58.69%% change in price = [($0.99 - $0.77) / $0.77] x 100 = 28.57%PED = -58.69% / 28.57% = -2.05
Generally when we calculate PED we use absolute values, i.e. this PED = 2.05. When PED > 1, price elastic, which means that any change in price will result in a larger change in quantity demanded. When PED < 1, price inelastic, which means that any change in price will result in a smaller change in quantity demanded. When PED = 1, unit elastic, which means that any change in price will result in a proportional and inverse change in quantity demanded.
The effects of inflation
Suppose Specific Automakers is considering signing a long-term contract with the union representing its workers. Specific Automakers and the union both agree that real wages should increase by 3%. Inflation is expected to be 6%, so they agree on a 9% nominal wage increase.
Now, suppose inflation turns out to be lower than expected, coming in at 5%. This would the _______union and _______ Specific Automakers because the real wage increase would now be _______.
Because of uncertainty about future inflation, the union devotes a large quantity of resources to monitoring inflation indicators in order to maximize its financial position.
This illustrates the fact that:
A. Inflation harms lenders and helps borrowers
B. Inflation obscures relative price changes
C. Variable inflation is associated with high transaction costs
Answer:
Benefit
Harm
Higher
C. Variable inflation is associated with high transaction costs
Explanation:
Inflation is a persistent rise in general price levels.
The increase in income was 9% based on the assumption that inflation would be 6%.
It turns out that inflation was 5%. The increase in income should have been 8% instead of 9%.
The union members end up earning more than they ought to, so they benefit. The company pays more than they ought to to workers, so they are in a disadvantage.
The union members spend a lot to monitor inflation. This is a transaction cost .
I hope my answer helps you
Your company has net sales revenue of $49 million during the year. At the beginning of the year, fixed assets are $21 million. At the end of the year, fixed assets are $23 million. What is the fixed asset turnover ratio
Answer:
The fixed asset turnover ratio is 2.13 times.
Explanation:
Fixed Assets Turnover Ratio = Sales / Total Fixed Assets
= $49 million / $23 million
= 2.13 times
Note that we use the end of year balances for fixed assets in the calculation of fixed asset turnover ratio.
Conclusion :
The fixed asset turnover ratio is 2.13 times.
The difference between the upper specification and the lower specification for a process is 0.600.60. The standard deviation is 0.100.10. Based on the givenâ information, the process capabilityâ ratio, Upper C Subscript pCp â= nothing â(round your response to two decimalâ places).
Answer:
1
Explanation:
The computation of the process capability ratio is shown below:
As we know that
Process capability ratio is
= (USL - LSL) ÷ (6 × Standard Deviation)
where USL = Upper Specification Limit
LSL= Lower Specification Limit
Their difference is 0.600
And, the standard deviation is 0.100
Now placing these values to the above formula
So, the process capability ratio is
= 0.600 ÷ (6% × 0.10)
= 1
is the person responsible for the business value of the project and for deciding what work to do and in what order when using a Scrum method
Answer:
product owner
Explanation:
The Scrum method is a framework for developing, delivering, and sustaining complex products in many fields of including research, sales, marketing and advanced technologies as seen below. In this methodology, the individual responsible for the business value of the project and for deciding what work to do is the product owner. This individual is usually the project's key stakeholder which gives him the responsibility of providing the vision of what the product should ultimately be to the rest of the team..
If a company presently has B+ credit rating, which one of the following will NOT contribute to achieving a higher credit rating?
A. A "low" default risk ratio
B. Larger retained earnings
C. A lower debt to assets ratio
D. A higher interest coverage ratio
E. A higher default risk ratio
Answer:
C
Explanation:
The option that would not contribute to achieving a higher credit rating for the company is a higher default risk ratio.
What do the financial ratios mean?
A low default risk ratio mean that the company has a low probability of defualting on its obligations. This would increases its rating.
A lower debt to assets ratio indicates lower financial risk and greater solvency. A higher interest coverage ratio indicates greater solvency.
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Zoey Bella Corp. has a payroll of $10,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. Prepare the adjusting entry on December 31 assuming the year ends on Thursday.
Answer:
Explanation:
From the question, we are informed that Zoey Bella Corp. has a payroll of $10,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek.
Assuming the year ends on Thursday which is 31st December, the salary expense that will be accrued on Thursday, December 31st will be:
= $10,000/5 × 4
= $2000 × 4
= $8000
It should be noted that Monday to Thursday is 4 days which was used in the calculation.
Kindly check the attached file for the adjusting entry.
Chubbyville purchases a delivery van for $23,500. Chubbyville estimates a four-year service life and a residual value of $2,100. During the four-year period, the company expects to drive the van 106,000 miles. Calculate annual depreciation for the four-year life of the van using each of the following methods.
a. Straight line.
b. Double-declining-balance.
c. Activity-based. Actual miles driven each year were 24,000 miles in Year 1 ; 26,000 miles in Year 2; 22,000 miles in Year 3; and 25,000 miles in Year 4. Note that actual total miles of 97,000 fall short of expectations by 8,000 miles.
Answer:
Straight-line method: $5,350 yearly depreciation expense for 4 yearsDouble-declining method: Year 1 - $11,750, Year 2 - $5,875, Year 3 - $2,938, Year 4 - $837Activity-based method: Year 1 - $4,845, Year 2 - $5,249, Year 3 - $4,442, Year 4 - $5,047Explanation:
(A) Under straight-line method, depreciation expense is (cost - residual value) / Estimated useful life = ($23,500 - $2,100) / 4 years = $5,350 yearly depreciation expense.
Accumulated depreciation for 4 years is $5,350 x 4 years is $21,400.
(B) The double-declining method is otherwise known as the reducing balance method and is given by the formula below:
Double declining method = 2 X SLDP X BV
SLDP = straight-line depreciation percentage
BV = Book value
SLDP is 100%/4 years = 25%, then 25% multiplied by 2 to give 50% or 1/2
At Year 1, 50% X $23,500 = $11,750
At Year 2, 50% X $11,750 ($23,500 - $11,750) = $5,875
At Year 3, 50% X $5,875 ($11,750 - $5,875) = $2,938
The depreciation for Year 4 $1,469 [50% X ($5,875 - $2,938)] will decrease the book value of the asset below its salvage value $2,100. Depreciation will only be allowed up to the point where the book value = salvage value. Consequently the depreciation for Year 4 will be $837.
Accumulated depreciation for 4 years is $11,750 + $5,875 + $2,938 + $837 = $21,400.
(C) The activity-based method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:
(Original Cost - Salvage value) / Estimated production capacity x Units/year
At Year 1, depreciation expense (DE) is: ($23,500 - $2,100) / 106,000 miles x 24,000 miles = $4,845
At Year 2, depreciation expense (DE) is: ($23,500 - $2,100) / 106,000 miles x 26,000 miles = $5,249
At Year 3, depreciation expense (DE) is: ($23,500 - $2,100) / 106,000 miles x 22,000 miles = $4,442
At Year 4, depreciation expense (DE) is: ($23,500 - $2,100) / 106,000 miles x 25,000 miles = $5,047
Accumulated depreciation for 4 years is $4,845 + $5,249 + $4,442 + $5,047 = $19,583.
Note that this depreciation method results in higher depreciation charge when the asset is heavily used, at this time, it was in Year 2.
The 8,000 miles fallen short expectation can be recognized as a loss.
Moyas Corporation sells a single product for $10 per unit. Last year, the company's sales revenue was $200,000 and its net operating income was $8,000. If fixed expenses totaled $72,000 for the year, the break-even point in unit sales was:
Answer:
Break-even point in units= 18,000 units
Explanation:
Giving the following information:
Selling price= $10
Fixed costs= $72,000
Sales= 200,000
Net income= 8,000
First, we need to calculate the unitary contribution margin.
Sales in units= 200,000/10= 20,000 units
Total contribution margin= net income + fixed costs
Total contribution margin= 8,000 + 72,000= $80,000
Unitary contribution margin= 80,000/20,000= $4
Now, using the following formula, the break-even point in units.
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 72,000/4
Break-even point in units= 18,000 units
Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 2017. Accounts receivable at December 31, 2017 totaled $141,000. Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 2017 to December 31, 2017. The balance in the inventory account decreased by $39,000 over the same period. Required: What is gross profit for the month of December under accrual accounting
Answer:
Gross profit from the month of December is $238000
Explanation:
Question is incomplete but the missing part is:
Cash received from customer during december 2017 - 387,000
Cash paid to supplier for inventory during december 2017 - 131,000
Accrual basis revenues
Particulars Amount $
Cash received from customer 387000
during December 2017
Cash received in December for -139000
November accounts receivable
December sales made on account 141000
collected in January
Accrual basis revenues 389000
Accrual basis expenses
Particulars Amount $
Cash paid to suppliers for inventory 131000
during December 2017
Payments for inventory purchased -19000
and used in November
Inventory purchased in November 39000
but not used in December
Accrual basis expenses 151000
Gross profit from the month of December= Accrual basis revenues - Accrual basis expenses
Gross profit = 389000 - 151000
Gross profit = $238000
Scenario: Mary Ling works for XYZ Corporation, LLC and they have just merged with ABC, Inc. Mary’s job, supervisor, and work location have not changed, but under the merger the companies are now working under the name ABCXYZ, Inc. What does Mary need to do to update this information with University of the Cumberlands?
Answer: c. Mary will need to send some sort of official documentation regarding the merge or company name change to the DSO, so that her record can be updated.
Explanation:
The options to the question are:
a. This is a new company and new position, Mary will need to compelete a new CPT application.
b. Nothing has changed, Mary does not need to provide any updates.
c. Mary will need to send some sort of official documentation regarding the merge or company name change to the DSO, so that her record can be updated.
d. Mary can call campus and just tell someone.
From the question, we are informed that Mary Ling works for XYZ Corporation, LLC and they have just merged with ABC, Inc. In this case since there is a merger, Mary has to send official documentation to the DAO in order to notify them about the merger and the change of name of the company. When the documents are received by the DSO, it'll be processed and the change will be effected in the student's record.
Wainright Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 720 2 930 3 1,190 4 1,275 If the discount rate is 10 percent, what is the present value of these cash flows
Answer:
The present value of cash flows is $3,188
Explanation:
The present value is the discounted value of future cash flows. It is today's value of future cash flows.
All the working is done and attached with this question in PDF file, please find it.
How would utility costs be properly classified? Select one: A. Curvilinear B. Fixed C. Variable D. Stepped E. Mixed
Answer: Mixed
Explanation:
Here is the complete question:
Max Machining incurs the following utilities costs at different levels of production:
0 units: $120
500 units: $2,620
1,000 units: $5,120
How would utility costs be properly classified?
A) Curvilinear
B) Variable
C) Mixed
D) Fixed
E) Stepped
The utility cost here will be classified as a mixed cost. A mixed cost is a type of cost that has both fixed and variable cost. At 0 units, $120 was already spent. This shows that this cost is a fixed cost as it doesn't have anything to do with output. It'll still be paid regardless of the number of outputs while the other cost incurred are variable cost which is dependent on the number of outputs of goods.
Based on the explanation above, the answer is mixed cost.