Answer:
$7.50
Explanation:
According to the scenario, computation of the given data are as follows,
Price of stock = $46.88
Required rate = 16%
So, we can calculate the dividend by using following formula,
Dividend = Price of stock × Required rate
By putting the value, we get
Dividend = $46.88 × 16%
= $7.50
Hence, dividend paid by this company is $7.50.
Taylor Company neglected to amortize the discount on outstanding ten-year bonds payable. What is the effect of the failure to record discount amortization on interest expense and bond carrying value, respectively
Answer:
Taylor Company
The negligence to amortize the discount on outstanding ten-year bonds payable is the understatement of interest expense for each year. This means that the interest expense will be the same for each year instead of increasing by the amortized discount amount. The same applies to the bond carrying value, which will remain the same throughout the period.
Explanation:
The discount on bonds payable is an additional interest expense, which is written off yearly over the bonds' maturity period through amortization. It increases the amount of the periodic interest payment by the amortized discount.
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Answer:
cool I guess.
Explanation:
. . . . . . . . . . .
Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a 15% sales commission on any merchandise sold. During the year, Mogul ships inventory with a cost of $100,000 to Ski Outfit. By the end of the year, $76,000 of the merchandise has been sold to customers for a total of $105,800. What amount of inventory will Mogul report at year end
Answer:
$24,000
Explanation:
According to the consignment accounting, it States that any inventory sent on consignment by the consignor to the consignee, belongs to the consignor until the inventory is sold by the consignee.
Regarding the above, Mogu company sent inventory costing $100,000 and out of this, only $76,000 has been sold. The remaining inventory still belongs to the consignor and the amount of this inventory is;
$100,000 - $76,000 = $24,000
Therefore, Mogul would report $24,000 worth of inventories at year end.
Discuss the basic features of Management as a profession.
Answer:
well defined body of knowledge
Explanation:
Management has well defined body of knowledge as in profession
GJ Company, a manufacturer, has provided the following information pertaining to its recent year of operation: Net income, $480,000 Accounts payable decreased $40,000 Prepaid assets increased $29,000 Depreciation expense was $51,000 Accounts receivable decreased $39,000 Loss on sale of a depreciable asset was $29,000 Wages payable increased $25,000 Unearned revenue decreased $29,000 Patent amortization expense was $11,000 Using the indirect method, how much was GJ's net cash provided by operating activities
Answer:
GJ Company
Cash Flow From Operating Activity
Net Income $480,000
Add: Depreciation Expenses $51,000
Add: Patent Amortization Expenses $11,000
Increase in Current Liability and
decrease in current asset
Accounts receivable decreased $40,000
Wages Payable Increased $25,000
Unearned Revenue decreased $29,000
Decrease in Current Liability
and Increase in current asset
Prepaid asset increased ($29,000)
Accounts Payable Decreased ($40,000)
Add: Loss on sale of asset $29,000
Cash Flow From Operating Activity $596,000
On November 10 of the current year, Flores Mills sold carpet to a customer for $7,700 with credit terms 2/10, n/30. Flores uses the gross method of accounting for sales discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date
Answer:
Flores Mills:
The correct entry for Flores on November 17 using the gross method of accounting for sales discounts is as follows:
Journal Entry
November 17:
Debit Cash $7,546
Debit Cash Discounts $154
Credit Accounts Receivable $7,700
To record the receipt of cash from a customer on account, including 2% discounts allowed for payment within 10 days.
Explanation:
a) Data and Analysis:
November 10: Accounts Receivable $7,700 Sales Revenue $7,700
with credit terms 2/10, n/30.
November 17: Cash $7,546 Cash Discounts $154 Accounts Receivable $7,700
Your grandmother would like to share some of her fortune with you. She offers to give you money under one of the following scenarios (you get to choose): 1. $8,750 a year at the end of each of the next seven years 2. $48,750 (lump sum) now 3. $99,350 (lump sum) seven years from now Calculate the present value of each scenario using a 6% interest rate. Which scenario yields the highest present value
Answer:
The most profitable option is the third one.
Explanation:
Escenario 1:
$8,750 a year at the end of each of the next seven years
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {8,750*[(1.06^7) - 1]} / 0.06
FV= $73,446.08
Now, the present value:
PV= FV / (1 + i)^n
PV= 73,446.08 / 1.06^7
PV= $48,845.78
Escenario 2:
Lump-sum= $48,750
Escenario 3:
$99,350 (lump sum) seven years from now
PV= 99,350 / 1.06^7
PV= $66,073.42
The most profitable option is the third one.
Marigold Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 96000 subscriptions in January at $20 each. What entry is made in January to record the sale of the subscriptions
Answer:
Dr Cash $1,920,000
Cr Unearned Subscription Revenue $1,920,000
Explanation:
Since The magazine sells 96,000 subscriptions in January at the amount of $20 each which means that the appropriate journal entry that made in January to record the sale of the subscriptions will be
Dr Cash $1,920,000
Cr Unearned Subscription Revenue $1,920,000
(96000*$20)
(To record the sale of the subscriptions)
CWN Company uses a job order costing system and last period incurred $82,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $73,000. It also expects to incur $100,000 of direct labor. If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be:
Answer:
the predetermined overhead rate is 65%
Explanation:
The computation of the predetermined overhead rate is shown below;
The Predetermined overhead rate
= Expected overhead ÷ expected total direct labour cost
= $73,000 ÷ $100,000
= 0.73
= 65%
hence, the predetermined overhead rate is 65%
The same would be considered and relevant
Choice Co. uses a discount rate of 8% in its capital budgeting. Partial analysis of an investment in automated equipment with a useful life of 8 years has thus far yielded a net present value of ($496,541) [a negative number]. This analysis did not include any estimates of the intangible benefits of automating this process nor did it include any estimate of the salvage value of the equipment. (Ignore income taxes.) Use the attached (in the exam introduction) present value tables to determine the appropriate discount factor(s). Use it to the .000 decimal. Or, use your calculator or Excel present value function. Ignoring any cash flows from intangible benefits, how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive
Answer:
A. $86,400
B. $919,520
Explanation:
A. Calculation to determine how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive
Using this formula
Additional cash flows from the intangible benefits = Negative net present value to be offset / Present value factor
Let plug in the formula
Additional cash flows from the intangible benefits = $496,541 / 5.747
Additional cash flows from the intangible benefits = $86,400
Therefore how large would the additional cash flow per year from the intangible benefits have to be to make the investment in the automated equipment financially attractive is $86,400
b. Calculation to determine how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive
Using this formula
Automated equipment Salvage value = Negative net present value to the offset /Present value factor
Let plug in the formula
Automated equipment Salvage value= $496,541 / 0.540
Automated equipment Salvage value= $919,520
Therefore how large would the salvage value of the automated equipment have to be to make the investment in the automated equipment financially attractive is $919,520
The following transactions occur for Cardinal Music Academy during the month of October:
a. Provide music lessons to students for $7,500 cash. Purchase prepaid insurance to protect musical equipment over the next year for $3,060 cash.
b. Purchase musical equipment for $10,500 cash. Obtain a loan from a bank by signing a note for $11,000.
d. Obtain a loan from a bank by signing a note for $20,000.
Required:
Record the transactions.
Answer and Explanation:
The journal entries are shown below;
a. cash Dr $7,500
To Service revenue $7,500
(To record the cash receipts )
Prepaid insurance $3,060
To cash $3,060
(To record the cash paid )
b. Musical equipment Dr $10,500
To cash $10,500
(To record the cash paid )
Cash Dr $11,000
To note payable $11,000
(To record the receipt of the loan )
d. Cash Dr $20,000
To note payable $20,000
(To record the receipt of the loan )
Courts Distributors needed two hundred compact refrigerators on a rush basis. It contacted Eastinghouse Corporation, a manufacturer of refrigerators. Eastinghouse said it would take some time to quote a price on an order of that size. Courts replied, "Send the refrigerators immediately and bill us later." The refrigerators were delivered three days later, and the invoice arrived ten days after that. The invoice price was $140,000. Courts believe that the wholesale market price of the refrigerators is only $120,000. Do the parties have a contract? If so, what is the price? Explain.
Answer:
Courts Distributors and Eastinghouse Corporation
Dispute over Contract Price
The two parties have a legal contract. The contract was established when Courts requested Eastinghouse to send the refrigerators and bill later.
The exact price for the contract is in dispute. This dispute can be resolved between the parties. Reference to the market price will help resolve the dispute, otherwise, the parties may seek alternative dispute resolutions, like litigation, mediation, or arbitration.
Explanation:
a) Data and Analysis:
Eastinghouse's invoice price for the refrigerators = $140,000
Courts' adopted market price = $120,000
b) Since Courts' reference to the price is with regard to the wholesale market price, it may be that Eastinghouse quoted the retail price instead. Since Courts is a distributor, it has the right to be charged a wholesaler's price and not a retailer's. Therefore, we can conclude that after due reference to the prevailing market price of similar refrigerators, the two parties may agree to a price of $120,000 or a little higher.
The single most important output in preparing financial budgets is the Group of answer choices sales forecast. determination of the unit cost of the product. cash budget. budgeted income statement.
Answer:
cash budget
Explanation:
financial budget can be regarded as a budget that gives strategy of a firm in managing its income, and expenses as well as assets and cash flow. It is used in establishing the picture of financial health of a particular Company and gives comprehensive overview of how the company spends relative to revenues. It should be noted that the single most important output in preparing financial budgets is the cash budget. Cash budget can be regarded as estimation of cash inflows as well as outflows of a company over a particular period of time. This can be weekly basis as well as monthly and quarterly, or annually. Through cash budget company can know if there is cash for continue operation within a time frame.
what is the difference between quantity demand and quantity supply.
Answer:
The distinction between supply and quantity supplied is similar to the difference between demand and quantity demanded. If the market price of a product increases, then the quantity supplied increases, and vice versa.
Explanation:
.....
Suppose that Under Armor and Nike are the sole producers of a particularly comfortable athletic shoe. The two firms currently charge the same price for their products. If neither firm reduces the price of its particularly comfortable athletic shoe, each firm earns $30 million in profit. If both firms reduce their prices, then each firm will earn $8 million in profit. If one firm reduces its price and the other does not, then the firm that reduces price will earn a profit of $70 million while the other firm will earn a profit of $2 million. Assuming that collusion is not a possibility, the Nash equilibrium occurs when ____________
a. Nike will reduce its price and Under Armor will maintain its current price
b. both firms will reduce their price.
c. Under Armor will reduce its price and Nike will maintain its current price
d. both firms will maintain their current price.
Answer:
b. both firms will reduce their price.
Explanation:
The Nash equilibrium is a decision-making theorem that lies inside the game theory where the player could attain the expected result by not deviating to the beginning strategy. In this, the strategy of the each player is optimal at the time when the other player decisions are relevant
So as per the given situation, both the firm should decrease their price
hence the option b is correct
A product has a demand of 4000 units per year. Ordering cost is $20 per order, and holding cost is $4 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost ________ per year in total annual inventory (holding and ordering) costs. $1200 $800 $400 Cannot be determined because the unit price is not known. Zero; this is a class C item
Answer:
the Annual inventory cost is $800.
Explanation:
The computation of the total annual inventory cost is given below:
Demand, D = 4000
Order cost, S = $ 20
Holding cost, H = $ 4
So,
EOQ = sqrt(2 ×D × S ÷ H)
= sqrt(2 × 4000 × 20 ÷ 4)
= 200
Now
Annual inventory cost = Annual setup cost + Annual holding cost
= (D ÷ Q × S) + (Q ÷ 2 × H)
= (4000 ÷ 200 × 20) + (200 ÷ 2 × 4)
= 400 + 400
= $800
hence, the Annual inventory cost is $800.
Terps Company reported total assets of $2,400,000 and net income of $320,000 for the current year. The company determined that inventory was overstated by $24,000 at the beginning of the year (this was not corrected). What is the corrected amount for total assets and net income for the year
Answer:
$2,400,000 and $344,000
Explanation:
Given the above information,
the corrected amount for total assets at the end of the year would still remain $2,400,000. Reason being that the overstatement of inventory has no effect whatsoever on the asset of the company.
Also, the corrected net income for the year would be ;
= Net income for the year + Over stated inventory
= $320,000 + $24,000
= $344,000
Therefore,
The corrected amount for total assets and net income for the year are $2,400,000 and $344,000 respectively
Terrace Salad issued a 25-year, annual bond with 8 percent coupon rate 15 years ago. The bond currently sells for 105 percent of its face value. What is the pretax cost of debt
Answer:
7.28%
Explanation:
Coupon rate = 8%
Nper = 10 (25-15)
PMT = 80 (1000*8%)
FV = 1000
PV = 1050
Yield to maturity = Rate(Nper, pmt, -pv, fv)
Yield to maturity = Rate(10. 80, -1050, 1000)
Yield to maturity = 0.072789069
Yield to maturity = 7.28%
Thus, the pretax cost of debt is 7.28%.
Selecting a Bank. Julie wants to open a bank account with $75. Julie estimates that she will write 20 checks per month and use her ATM card at the home bank. She will maintain a $200 bal-ance. Which bank should Julie choose
Answer:
holaaaaaaAAAAAA
Explanation:
jhhrjtffgtfffgyuuuuiuiii
astore Inc. granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise price is $34 per share, which was also the market value of the stock on the grant date. The fair value of the options was estimated at $9.50 per option. What would be the total compensation indicated by these options
Answer:
$9,500,000
Explanation:
Calculation to determine What would be the total compensation indicated by these options
Using this formula
Total compensation=Options granted *Estimated fair value of the options
Let Plug in the formula
Total compensation=1,000,000 × $9.50
Total compensation= $9,500,000
Therefore What would be the total compensation indicated by these options is $9,500,000
Question 17 of 25
In the business cycle, which term best fits the labeled point on the graph?
Production output
Time
Answer: Trough
Explanation:
Just took the test
In the business cycle, trough best fits the labeled point on the graph. Therefore, option (B) is correct.
A business cycle is a recurring pattern of economic expansion and contraction, characterized by fluctuations in gross domestic product (GDP), employment, and other economic indicators. The cycle is marked by four distinct phases: expansion, peak, contraction, and trough. During the expansion phase, the economy is growing, unemployment rates are low, and consumer spending is strong.
At the peak, economic growth begins to slow, and employment levels may start to decline. During the contraction phase, the economy is in decline, with falling GDP, rising unemployment, and decreasing consumer spending. The trough marks the end of the contraction phase, and is characterized by the economy's lowest point before it begins to recover and enter the expansion phase once again. The business cycle is influenced by a variety of factors, including government policy, natural disasters, and global economic conditions.
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which of the following jobs function check accounting in the ledger and financial statements?
Answer:
Audit is the one who check .....
Splish Brothers Inc. reported net income of $194,800 for 2022. Splish Brothers also reported depreciation expense of $47,700 and a loss of $5,900 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $16,700 for the year, a $18,700 increase in accounts payable, and a $3,000 increase in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2022. Use the indirect method.
Answer:
Operating activities section of the statement of cash flows for 2022
Net Income $194,800
Adjustment for non cash items :
Depreciation $47,700
Loss on disposal $5,900
Adjustments for changes in working capital :
Increase in accounts receivable ($16,700)
Increase in accounts payable $3,000
Net Cash Provided by Operating Activities $234,700
Explanation:
Operating activities section of the statement of cash flows reconciles the Net Income to Operating Cashflow when the indirect method is used as shown above.
List four natural resources that you think would go into the production of the following products
Answer:
sorry I think u got yr question incomplete..
Explanation:
Oil, coal, natural gas, metals, stone and sand are natural resources. Other natural resources are air, sunlight, soil and water. Animals, birds, fish and plants are natural resources as well.
stay safe healthy and happy.. An analyst has determined that the intrinsic value of Coca Cola stock is $80 per share using the capitalized earnings model. If the typical P/E ratio in the computer industry is 22, then it would be reasonable to assume the expected EPS of Coca Cola in the coming year is
Answer:
$3.64
Explanation:
We know that :
Price / Earning ratio (P/E ratio) = Price per Share ÷ Earnings per Share
thus :
Earnings per Share = Price per Share ÷ Price / Earning ratio
= $80 ÷ 22
= $3.636 or $3.64
therefore,
the expected EPS of Coca Cola in the coming year is $3.64
The internal rate of return for a project will increase if: the initial cost of the project can be reduced. the total amount of the cash inflows is reduced. each cash inflow is moved such that it occurs one year later than originally projected. the required rate of return is reduced. the discount rate is increased.
Answer:
the initial cost of the project can be reduced
Explanation:
As we know that the internal rate of return is the return where the net present value comes to zero or we can say that the initial investment would be equivalent to the present value of annual cash inflows
In the case when the internal rate of return is rise up so the initial investment or initial cost would be decreased
Therefore the first option is correct
Headland Construction Company, which began operations in 2020, changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2021. For tax purposes, the company employs the completed-contract method and will continue this approach in the future. The appropriate information related to this change is as follows.
Pretax Income from
Percentage-of-Completion Completed-Contract Difference
2020 $875,000 $590,000 $285,000
2021 913,000 476,000 437,000
Required:
a. Assuming that the tax rate is 30%, what is the amount of net income that would be reported in 2020?
b. What entry(ies) are necessary to adjust the accounting records for the change in accounting principle?
Answer:
A.$262,500
B. Dr Construction in Process $285,000
Cr Deferred Tax $85,500
Cr Retained Earnings $199,500
Explanation:
A. Calculation to determine the amount of net income that would be reported in 2020
Using this formula
2020 Net income=Income before tax*Tax rate
Let plug in the formula
2020 Net income=$875,000*30%
2020 Net income=$262,500
Therefore the amount of net income that would be reported in 2020 is $262,500
B. Preparation of the entry(ies) that are necessary to adjust the accounting records for the change in accounting principle
Dr Construction in Process $285,000
Cr Deferred Tax $85,500
(30%*$285,000)
Cr Retained Earnings $199,500
($285,000-$85,500)
(To adjust the accounting records)
The Heath Corporation reported net income for 20X1 of $177,500. Heath began the year with 100,000 shares of $5 par value common shares outstanding and 2,500 shares of $100 par value 8% preferred shares outstanding. On October 1, Heath sold 10,000 shares of common stock for $6 per share. Heath paid dividends to the common shareholders in December. The weighted average number of common shares used to compute earnings per share for 20X1 is:
Answer:
107,500 shares
Explanation:
weighted average number of common shares = 100,000 shares + 10,000 shares x 3/12
= 107,500 shares
The weighted average number of common shares used to compute earnings per share for 20X1 is: 107,500 shares
Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Statement Consumer Surplus Producer Surplus Neither Even though I was willing to pay up to $73 for a watch, I bought a watch for only $65. I paid $53 for a jersey sweater last week. This week, the same store is selling sweaters for $43. I sold a used textbook for $45, even though I was willing to go as low as $36 in order to sell it.
Answer:
I was willing to pay up to $73 for a watch, I bought a watch for only $65. consumer surplus
Neither - I paid $53 for a jersey sweater last week. This week, the same store is selling sweaters for $43.
I sold a used textbook for $45, even though I was willing to go as low as $36 in order to sell it. producer surplus
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
the consumer surplus for the individual buying the watch = $73 - $65 = $8
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
the producer surplus for the textbook seller = $45 - $36 = $9
the jersey purchase statement represent neither consumer or producer surplus because the willingness to pay and the highest amount the seller would be willing to sell was not indicated
Producer surplus = price – least price the seller is willing to accept
Exercise 24-08 a The following direct materials and direct labor data pertain to the operations of Skysong Company for the month of August. Costs Actual labor rate $15 per hour Actual materials price $190 per ton Standard labor rate $14.50 per hour Standard materials price $193 per ton Quantities Actual hours incurred and used 4,600 hours Actual quantity of materials purchased and used 1,700 tons Standard hours used 4,650 hours Standard quantity of materials used 1,680 tons (a) Compute the total, price, and quantity variances for materials and labor
Answer:
Total materials variance = $1,240 favorable
Materials price variance = $5,100 favorable
Materials quantity variance = $3,860 unfavorable
Total labor variance = $1,575 unfavorable
Labor price variance = $2,300 unfavorable
labor quantity variance = $725 favorable
Explanation:
Materials Variances
Total materials variance = Standard Cost - Actual Cost
= ($193 x 1,680) - ($190 x 1,700)
= $324,240 - $323,000
= $1,240 favorable
Materials price variance = (Standard Price - Actual Price) x Actual Quantity
= ($193 - $190) x 1,700
= $5,100 favorable
Materials quantity variance = (Standard Quantity - Actual Quantity) x Standard Price
= (1,680 - 1,700) x $193
= $3,860 unfavorable
Labor Variances
Total labor variance = Standard Cost - Actual Cost
= ($14.50 x 4,650) - ($15 x 4,600)
= $67,425 - $69,000
= $1,575 unfavorable
Labor price variance = (Standard rate- Actual rate) x Actual hours
= ($14.50 x $15) x 4,600
= $2,300 unfavorable
labor quantity variance = (Standard hours - Actual hours ) x Standard rate
= (4,650 - 4,600) x $14.50
= $725 favorable