Answer:
C) more workers are willing to work as the market wage increases.
Explanation:
As we see in the question that there is an increase in upward sloping of labor supply curve that means more and more workers are ready or willing to work in that case where the wages of the market increased
Therefore according to the options, the option C is correct as it mets the current situation and the same is to be considered
Hence, all other options are incorrect
Tim is the vice president of western operations for Maroon Oil Company and is stationed in San Francisco. He is required to live in an employer-owned home, which is three blocks from his company office. The company-provided home is equipped with high-speed Internet access and several telephone lines. Tim receives telephone calls and e-mails that require immediate attention any time of day or night because the company's business is spread all over the world. A full-time administrative assistant resides in the house to assist Tim with the urgent business matters. Tim often uses the home for entertaining customers, suppliers, and employees. The fair market value of comparable housing is $9,000 per month. Tim is also provided with free parking at his company's office. The value of the parking is $350 per month.
The amount associated with the free parking that Tim must include in his gross income per month is?
Answer:
$80 (in 2020)
Explanation:
I will assume that this question takes place during the current year (2020). An employee is required to include as income all transportation benefits that exceed $270 per month. In this case, free parking is considered a transportation benefit and Tim must report $350 - $270 = $80 as taxable benefits. The exclusion amount varies depending on the year, e.g. it was $265 in 2019.
The amount that should be included in the gross income per month should be $80.
Calculation of the amount:The employee should needed to involved the income in terms of transportation benefits that should be more than $270 per month. Since the free parking should be considered as the transportation benefit
So here the amount associated should be
= $350 - $270
= $80
hence, The amount that should be included in the gross income per month should be $80.
Learn more about amount here: https://brainly.com/question/24316713
Identify each of the following accounts as a component of asset (A), liabilities (L), or equity (E). Account Balance sheet section
a. Cash and cash equivalents
b. Wages payable
c. Common stock
d. Equipment
e. Long-term debt
f. Retained earnings
g. Additional paid-in capital
h. Taxes payable
Answer:
a. asset (A)
b. liabilities (L)
c. equity (E)
d. asset (A)
e. liabilities (L)
f. equity (E)
g. equity (E)
h. liabilities (L)
Explanation:
A Balance sheet shows the balance of assets, liabilities and equity at the reporting date.
Assets are economic resources controlled by the entity such as equipment and cash.
Liabilities are obligation that arise such as wages payable and tax payable.
Equity is the residue after deducting liabilities from assets. it represents the owners contribution through equity and retained income.
Revenues and gains included in arriving at net income that do not provide cash.
Answer:
Non-cash revenues.
Explanation:
Non-cash revenues can be defined as revenues and gains included in arriving at net income that do not provide cash.
Basically, on the statement of cash-flow, non-cash revenues are considered not to be a real cash-flow because they don't add to the total inflow of cash.
Some examples of noncash revenues are amortization of premium relating to bonds payable, cash flow from investments that are carried under the equity method, accrued revenues, and gains from disposals of non-current assets.
The risk-free rate is 4.2%, and the expected return on the market is 10%. A publicly-traded bond promises to return 8%. The expected return on the bond investment is 5.5%. What is the bond's implied beta?
a) 0.45
b) 0.22
c) 0.73
d) 1.38
Answer: the bond's implied beta= 0.22-b
Explanation:
According to Capital Asset Pricing Model CAPM, we have that
Expected return =Rf + β(Rm - Rf)
Rm is expected return on market
β= beta of bond
Rf=risk free return
therefore
Expected return =Rf + β(Rm - Rf)
5.5 = 4.2 + β(10-4.2)
5.5=4.2+ β5.8
5.5-4.2= β5.8
1.3=β5.8
β= 1.3/5.8=0.22
borrowed $10 million by signing a five-year note on December 31, 2015. Repayments of the principal are payable annually in installments of $2 million each. Purdue Farms makes the first payment on December 31, 2016 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2016, after the first payment is made
Answer: $2 million in Current liabilities and $6 million in long-term liabilities
Explanation:
Current liabilities are those obligations that a company owes that will be settled in a period/ year.
The first payment of $2 million in 2016 has already been paid so the total amount remaining on the 31st of December is $8 million.
Of this $8 million, a payment of $2 million will be made in a year in 2017 so this will be recorded as Current liabilities as it is a year from 2016.
The remaining $6 million will be long-term as they will be paid in more than a year being 2018, 2019 and 2020.
For a country A, the GDP growth rate is 8 percent and inflation is 4 percent. If the velocity of money remains constant, what is the change in real money balances
Answer:
The change in the real money balance is 12%
Explanation:
As per gievn data
GDP growth rate = 8%
Inflation = 4%
The real money change is as follow
Equation
Delta M + Delta V = Delta P + Delta Y
Where
Delta M = Real money change = ?
Delta V = Change in velocity = 0
Delta P = Inflation rate = 4%
Delta Y = GDP growth rate = 8%
Placing values in the above equation
Delta M + 0 = 4% + 8%
Delta M = 12%
Hence the money balance will increase by 12%.
A capital investment project is expected to generate an incremental increase in revenues of $15 million and an incremental increase in operating costs of $10 million during its first year. Year 1 incremental depreciation expense is $5 million. The firm’s interest expense will increase by $2 million during year 1. If the firm’s marginal tax rate is 35% what is the year 1 incremental after-tax cash flow for capital budgeting purposes?
Answer:
$5,000,000
Explanation:
Particulars Amount
incremental increase in revenues $15,000,000
- Incremental increase in operating costs $10,000,000
- Incremental depreciation expense $5,000,000
Earnings before interest and taxes $0
Tax ($0 *35%) $0
Operating Income $0
+ Incremental depreciation expense $5,000,000
After Tax Cash flow for capital budgeting $5,000,000
Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $96,000 at the end of each month. At the end of the contract, Velocity either will give Burger Boy a refund of $32,000 or will be entitled to an additional $32,000 bonus, depending on whether sales at Burger Boy at year-end have increased to a target level. At the inception of the contract, Velocity estimates an 80% chance that it will earn the $32,000 bonus and calculates the contract price based on the expected value of future payments to be received. At the start of the fifth month, circumstances change, and Velocity revises to 60% its estimate of the probability that it will earn the bonus. At the end of the contract, Velocity receives the additional consideration of $32,000.
Answer:
the journal entries:
to record the contract
Dr Accounts receivable 96,000
Dr Bonus receivable 2,400
Cr Service revenue 98,400
to record adjustment of bonus receivable at month 5:
Dr Service revenue 6,400
Cr Bonus receivable 6,400
to record service revenue for the fifth month:
Dr Accounts receivable 96,000
Dr Bonus receivable 800
Cr Service revenue 96,800
to record getting the bonus:
Dr Cash 32,000
Cr Bonus receivable 6,400
Cr Service revenue 25,600
Explanation:
total value of the contract:
[($96,000 x 8) + $32,000] x 0.8 = $640,000
[($96,000 x 8) - $32,000] x 0.2 = $147,200
total expected value = $787,200
expected value of the bonus = $787,200 - ($96,000 x 8) = $19,200, monthly bonus receivable $19,200 / 8 = $2,400
the adjustments required during the fifth month:
[($96,000 x 8) + $32,000] x 0.6 = $480,000
[($96,000 x 8) - $32,000] x 0.4 = $294,400
total expected value = $774,400
expected value of the bonus = $774,400 - ($96,000 x 8) = $6,400, monthly bonus receivable $6,400 / 8 = $800
What would you be willing to pay for a $1000 par, 7 1/2% coupon bond with 25 years until maturity if you wanted to earn a return of 8%
Answer:
$958.78
Explanation:
The computation of the present value is shown below:
Given that
Future value = $1,000
NPER = 25
PMT = $1,000 × 7.5% = $75
RATE = 8%
The formula is shown below:
= -PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $958.78
The same is to be considered
CEOs are limited in making policy changes regarding climate change by all of the following EXCEPT __________.
Answer: b. the necessity to think in the long term rather than the short term
Explanation:
There are policy changes that a company can make that will result in them having lower profits. For this reason, the CEO might face opposition or limitations from certain people or principles in implementing such changes.
The Board of Directors is one such limitation as they owe it to the shareholders to maximise their wealth and if climate change policy might hinder that, they might limit the policy. This reason is the same for any limitation from investor support which is linked directly to profits.
The CEO also has the same fiduciary responsibility to maximise shareholder wealth as well. The only option which is not a limiting factor therefore is the necessity to think in the long term rather than the short term.
So I’m 13. I have a small business, and 2 months ago my mom canceled my credit card. I get paid through credit card.Since she canceled my card, I don’t have where to get paid. How can i get a credit card without my mom knowing?
Answer:
so if you are a minor you have to have a parent or guardian sign off to get you a card, I had the same issue my mom refused to get me a card even tho i worked. I just got my dad to sign on it because then my mom couldnt do anything about it because her name wasnt in it. I hope this helps, and what type of business do you have.
Ivanhoe Construction Company had a contract starting April 2021, to construct a $23000000 building that is expected to be completed in September 2023, at an estimated cost of $21000000. At the end of 2021, the costs to date were $7560000 and the estimated total costs to complete had not changed. The progress billings during 2021 were $3800000 and the cash collected during 2021 was 3100000. Ivanhoe uses the percentage-of-completion method. At December 31, 2021 Ivanhoe would report Construction in Process in the amount of:
Answer:
$8280000
Explanation:
From the given information;
The percentage of the completion method used in construction is equal to the contract price multiplied by the percentage of estimated total cost incurred to date i.e.
Cumulative cost to date $7560000
Estimated total cost $21000000
Percentage of completion 36% ( $7560000/ $21000000 )
The contract price for this project is $23000000
Therefore,
At December 31, 2021 Ivanhole would report construction in process in the amount of: $23000000 × 36%
= $8280000
he Presley Corporation is about to go public. It currently has aftertax earnings of $7,000,000, and 2,000,000 shares are owned by the present stockholders (the Presley family). The new public issue will represent 500,000 new shares. The new shares will be priced to the public at $25 per share, with a 4 percent spread on the offering price. There will also be $250,000 in out-of-pocket costs to the corporation. a. Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.)
Answer:
Missing question is "a. Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Net proceeds
b. Compute the earnings per share immediately before the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share
c. Compute the earnings per share immediately after the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share "
a. Net proceeds = Shares issued * Share price*(1-0.04) - Direct cost
Net proceeds = 500,000 * $25*(1-0.04) - $250,000
Net proceeds = 500,000*$24 - $250,000
Net proceeds = $12,000,000 - $250,000
Net proceeds = $11,750,000
b. EPS = Earnings / Shares
EPS = $7,000,000 / 2,000,000 shares
EPS = $3.50 per share
c. EPS = After tax earnings / Total shares
EPS = $7,000,000 / (2,000,000 + 500,000)
EPS = $7,000,000 / 2,500,000 shares
EPS = $2.80 per shares
"The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $40,000 each year?"
Answer:
The question is missing the amount that Debbie's fund has, so I looked for similar questions and the number I found was $368,882.
we can use the present value of an annuity due formula to determine how long it will take Debbie to empty her account.
present value of annuity due = (payment / i) x {1 - [1 / (1 + i)ⁿ]} x (1 + i)
368,882 = (40,000 / 0.03) x {1 - [1 / (1 + 0.03)ⁿ]} x (1 + 0.03)
368,882 = 1,333,333.33 x 1.03 x {1 - [1 / (1 + 0.03)ⁿ]}
368,882 = 1,373,333.33 x {1 - [1 / (1 + 0.03)ⁿ]}
1 - [1 / (1.03)ⁿ] = 368,882 / 1,373,333.33 = 0.268603398
1 - 0.268603398 = [1 / (1.03)ⁿ]
0.731396601 = 1 / (1.03)ⁿ
1.03ⁿ = 1 / 0.731396601 = 1.367247261
n = log 1.367247261 / log 1.03 = 0.135847062 / 0.012837224 = 10.58 years
Debbie will exhaust the fund in 10.58 years. That means that Debbie will be able to withdraw $40,000 for 10 years, and then the last withdrawal will be lower.
Explanation:
General Electric issued 8%, 15-year bonds with a par value of $500,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is:_____________
Answer:
Interest Charge $20,000 (debit)
Cash $20,000 (credit)
Explanation:
Find the Issue Price (PV) so as to construct the amortization schedule.
Pmt= ($500,000 × 8%) ÷ 2 = $20,000
i = 8%
Fv = $500,000
P/yr = 2
N= 15 × 2 = 30
Pv = ?
Using a Financial calculator to enter the data as above, Pv would be $500,000.
Answer:
Explanation:
Date Journal Entry Debit Credit
Bond Interest Expense $20,000
Cash $20,000
(Being semi-annual interest payment on bonds)
Workings:
The semi-interest payment = Coupon rate × par Value × 1/2
Semi-annual interest payment = 8% * $500,000 * 1/2
Semi- annual payment = $20,000
Princetown Inc. has a $4.82 million basis in 68% of the outstanding stock of Merryvale Corporation. Merryvale manufactures Christmas decorations, cards, and wrapping paper. Princetown's board of directors recently learned that Merryvale is bankrupt. The board voted unanimously to dissolve the corporation and distribute all assets to Merryvale's creditors. What is the tax consequence to Princetown of the board's actions?
Answer:
$4.82 million ordinary loss
Explanation:
Note: The option to the question is attached
Merryvale is an affiliated corporation, so Princetown is allowed an ordinary loss in the worthlessness of the stock
Bryant Company has a factory machine with a book value of $88,100 and a remaining useful life of 7 years. It can be sold for $30,900. A new machine is available at a cost of $413,300. This machine will have a 7-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $579,100 to $505,700. Prepare an analysis showing whether the old machine should be retained or replaced.
Answer: The old factory machine should be replaced as from computation below will lead to a lower cost for Bryant Company
Explanation:
Particulars Retain Equipment Replace Equipment Net Income
Increase/Decrease
Variable manufacturing costs
$4,053,700 $3,539,900 $513,800
$579,100 x 7 $505,700 x 7
New machine cost $413,300 -$410,300.
Sale of old machine -$30,900 $30,900.
Total $4,053,700 $3,922,300 $134,400
The old factory machine should be replaced as from computation will lead to a lower cost of $3,922,300 instead of $4,053,700 for Bryant Company
What is the beta for a 2 stock portfolio with a 0.54 weight in Walmart stock and the remainder in Amazon
Answer: 0.73
Explanation:
Walmart Beta = 0.3616
Amazon's beta = 1.1634
The beta of the portfolio will be a weighted average of the portfolio beta;
= (Walmart beta * Walmart weight) + ( Amazon beta * Amazon weight)
= (0.3616 * 0.54) + ( 1.1634 * (1 - 0.54))
= 0.730428
= 0.73
What are also known as restrictive covenants or Covenants, Conditions and Restrictions and are constraints that run with the land?
a. Licenses
b. Liens
c. Deed restrictions
d. A bundle of rights
Answer:
Option c (Deed restrictions) is the correct alternative.
Explanation:
Deed limitations or restrictions are personal agreements anything in any way regulate use of such property development and therefore are stated in the deed. The purchaser can add a limitation to something like the subject property. Sometimes, in something like development, architects limit the parcels of land to ensure a certain degree of uniformity.Some other three considerations do not apply to the condition given. So, the solution is indeed the right one.
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Division L Division Q Sales $529,000 $161,000 $368,000 Variable expenses 305,900 99,820 206,080 Contribution margin 223,100 61,180 161,920 Traceable fixed expenses 122,380 33,320 89,060 Segment margin 100,720 $ 27,860 $ 72,860 Common fixed expenses 36,030 Net operating income $ 64,690 The break-even in sales dollars for Division Q is closest to: Multiple Choice $280,790 $223,375 $446,200 $202,409
Answer:
$202,409
Explanation:
Firstly, we will need to calculate Break even in sales dollar for division Q using the formula;
= Division Q fixed cost / contribution margin ratio
Division Q fixed cost = $89,060
But,
Contribution margin ratio = Contribution margin / Sales
Contribution margin ratio = $161,920 / $368,000
Contribution margin ratio = 44%
Therefore, the Break even in sales dollar for Division Q
= $89,060 / 44%
= $202,409
The Break even in sales dollars for Division Q is closest to $202,409
Present value concept
1. What single investment made today, earning 5% annual interest, will be worth $4,400 at the end of 5 years?
2. What is the present value of $4,400 to be received at the end of 5 years if the discount rate is 5%?
3. What is the most you would pay today for a promise to repay you $4,400 at the end of 5 years ifyour opportunity cost is 5%?
4. Compare, contrast, and discuss your findings in part a through c.
A. A single investment made today, earning 5% annual interest, worth $4,400 at the end of 5 years is $______.
B. The present value of $4,400 to be received at the end of 5 years, the discount rate is 5% is______.
C. The most you would pay today for a promise to repay you $4,400 at the end of 5 years if your opportunity cost is 5% is $_____.
D. Compare, contrast, and discuss your findings in part a through c.
A. The annual interest rate is also called the discount rate or the opportunity cost.
B. In all three cases, you are solving for the present value, PV, which is $3,447.52.
C. In all three cases, the answer is $$3,447.52. In part a, it is the payment, PMT. In part b, it is the present value, PV. In part c, it is the future value, FV.
D. In parts a and c, $4,400 is the future value, FV. In part b, $4,400 is the present value, PV. Therefore, parts a and c have the same answer, while part b has a different answer.
Answer:
The present value concept
1. The single investment made today, earning 5% annual interest that will be worth $4,400 at the end of 5 years is:
$3,447.52
2. The present value of $4,400 to be received at the end of 5 years if the discount rate is 4% is:
$3,447.52
3. The most I would pay today for a promise to repay me $4,400 at the end of 5 years if my opportunity cost is 5% is:
$3,447.52
4. A. A single investment made today, earning 5% annual interest, worth $4,400 at the end of 5 years is $__3,447.52____.
B. The present value of $4,400 to be received at the end of 5 years, the discount rate is 5% is__$3,447.52____.
C. The most you would pay today for a promise to repay you $4,400 at the end of 5 years if your opportunity cost is 5% is $__3,447.52___.
5.
A. The annual interest rate is also called the discount rate or the opportunity cost.
B. In all three cases, you are solving for the present value, PV, which is $3,447.52.
Explanation:
You will need to invest $3,447.52 at the beginning to reach the future value of $4,400.00.
FV (Future Value) $4,400.00
PV (Present Value) $3,447.512
N (Number of Periods) 5.000
I/Y (Interest Rate) 5.000%
PMT (Periodic Payment) $0.00
Starting Investment $3,447.52
Total Principal $3,447.52
Total Interest $952.48
Granfield Company has a piece of manufacturing equipment with a book value of $36,500 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $21,300. Granfield can purchase a new machine for $113,000 and receive $21,300 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,300 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:
Answer:
($18,500)
Explanation:
Book value of manufacturing equipment = $36,500
Current market value of equipment = $21,300
Cost of new machine = $113,000
Cash received from trading old machine = $21,300
Variable manufacturing costs of new machine reduced by $18,300 per year, over the four year
Total increase/decrease in net income = Cost of new machine + Cash received from trading old machine + Reduction in variable manufacturing costs
= ($113,000) + $21,300 + $18,300 × 4
= ($113,000) + $21,300 + $73,200
= ($18,500)
It therefore means that the total decrease in net income by replacing the current machine with the new machine is $18,500
Dorchester Company had the following balances at the end of 2018 and 2019 respectively: Net Credit Sales - $875,000 for 2018 and $1,032,000 for 2019. Accounts Receivable - $84,000 for 2018 and $107,000 for 2019. Allowance for Doubtful Accounts - $4,000 for 2018 and 7,500 for 2019 Calculate the accounts receivable turnover ratio to one decimal place.
Answer:Accounts Receivable Turnover Ratio = 11.50 times
Explanation:
Accounts Receivable Turnover Ratio is calculated using
Net Credit Sales / Average Accounts Receivable
Net Credit Sales for 2019 = $1,032,000
Net Accounts Receivable in 2018 = Accounts Receivable in 2018 - Allowance for Doubtful Accounts in 2018
= $84,000 - $4,000
= $80,000
Net Accounts Receivable in 2019 = Accounts Receivable in 2019 - Allowance for Doubtful Accounts in 2019
= $107,000 - $7,500
= $99,500
Average Accounts Receivable = (Net Accounts Receivable in 2018 + Net Accounts Receivable in 2019) / 2
= ($80,000 + $99,500) / 2
= $179,500 / 2
= $89,750
Accounts Receivable Turnover Ratio = Net Credit Sales in 2019 / Average Accounts Receivable
= $1,032,000/ $89,750
= 11.498
= 11.50 times
Answer:
PoyPoy
Explanation:
Flyer Corporation manufactures two products, Product A and Product B. Product B is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product A. Product B is the more complex of the two products, requiring three hours of direct labor time per unit to manufacture compared to one and one-half hours of direct labor time for Product A. Product B is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $396,000 in manufacturing overhead costs and produce 5,500 units of Product B and 22,000 units of Product A during the current year. Unit costs for materials and direct labor are:
Answer:
since the numbers are missing, i looked for similar questions:
Product A Product B
Direct material $9 $20
Direct labor $7 $15
the predetermined overhead rate = $396,000 / [(5,500 x 1.5) + (22,000 x 3)] = $396,000 / 74,250 direct labor hours = $5.333333 per direct labor hour
total production costs per unit:
Product A = $9 + $7 + ($5.33333 x 1.5) = $24
Product B = $20 + $15 + ($5.33333 x 3) = $51
The Cash account of Security Systems reported a balance of at , . There were outstanding checks totaling and a 31 deposit in transit of . The bank statement, which came from Cities Bank, listed the balance of . Included in the bank balance was a collection of on account from , a customer who pays the bank directly. The bank statement also shows a service charge and of interest revenue that earned on its bank balance. Prepare 's bank reconciliation at 31.
Answer:
Follows are the solution to this question:
Explanation:
please find the attached file.
How much must you deposit in a bank account today to have $1,000 at the end of 5 years if the bank quotes a rate of 5%, compounded daily? Assume a 365-day year and round your answer to the nearest dollar.
Answer:
PV= $774.54
Explanation:
Giving the following information:
Future value= $1,000
Number of periods= 5*365= 1,825 days
Interest rate= 0.05/365= 0.00014
To calculate the initial investment, we need to use the following formula:
PV= FV / (1+i)^n
PV= 1,000 / (1.00014^1,825)
PV= $774.54
On a flight from Boston to Seattle, American reduced its Internet price by $190.00. The sale price was $535.99. What was the original price?
Answer:
the original price is $725.99
Explanation:
Calculation of Original Price
Current Sales Price $535.99
Add Reduction Amount $190.00
Original Price $725.99
Rode Company estimates bad debt expense at 1% of credit sales. The company reported accounts receivable of $100,000 and a pre-adjustment credit balance in its allowance for uncollectible accounts account of $2,000 at the end of the current year. During the current year, Rode’s credit sales were $2,000,000. What is the amount of the company’s bad debt expense for the current year?
Answer:
$20,000
Explanation:
Calculation for the amount of the company’s bad debt expense for the current year
Using this formula
Bad debt expense = Credit Sales Amount × Estimated percentage uncollectible
Let plug in the formula
Bad debt expense = $2,000,000 × 1%
Bad debt expense =$20,000
Therefore the amount of the company’s bad debt expense for the current year will be $20,000
Mattress Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $ million and inventory was $ million. This year, costs of goods sold is $ million and inventory investment is $ million. a) What was its weeks of supply last year? nothing weeks (round your response to two decimal places). b) What is its weeks of supply this year? nothing weeks (round your response to two decimal places). c) Is Mattress Wholesalers making progress in its inventory reduction effort? Since the number of weeks that cover the supply has ▼ decreased not changed increased , Mattress Wholesalers is making ▼ negative progress no progress progress in its inventory-reduction effort.
Answer:
A. Weeks supply= 10.7
B. Weeks supply= 9.53
C. Yes
DECREASED, PROGRESS
Explanation:
A. Calculation for last year’s weeks of supply
First step is to find the Average cost of sold good on week basis
Using this formula
Average cost of sold good on week basis =Cost of goods sold /Numbers of weeks in a year
Let plug in the formula
Average cost of sold good on week basis= $7.54 million/ 52
Average cost of sold good on week basis= $ 0.145 million
Last step is to find last year Weeks supply using this formula
Last year Weeks supply=Investment in inventory/ Average cost of sold good on week basis
Let plug in the formula
Last year Weeks supply=$1.46/0.145
Last year Weeks supply= 10.7
B. Calculation for weeks supply this year?
Using this formula
Average cost of sold good on week basis =Cost of goods sold /Numbers of weeks in a year
Let plug in the formula
Average cost of sold good on week basis= $8.62 million/ 52
Average cost of sold good on week basis= $ 0.165769 million
Last step is to find this year Weeks supply using this formula
This year Weeks supply=Investment in inventory/ Average cost of sold good on week basis
Let plug in the formula
This year Weeks supply=$1.58/0.165769
This year Weeks supply= 9.53
C. Yes, Mattress Wholesalers is making progress in its inventory reduction effort .
Since the numbers of weeks that cover the supply had DECREASED, Wholesalers is making PROGRESS in its inventory reduction effort
Pharoah Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company’s fiscal year on November 30, 2022, these accounts appeared in its adjusted trial balance.
Accounts Payable $ 26,400
Accounts Receivable 17,100
Accumulated Depreciation—Equipment 68,000
Cash 8,000
Common Stock 35,000
Cost of Goods Sold 609,960
Freight-Out 6,440
Equipment 159,160
Depreciation Expense 13,700
Dividends 12,000
Gain on Disposal of Plant Assets 2,000
Income Tax Expense 10,000
Insurance Expense 9,000
Interest Expense 5,000
Inventory 26,100
Notes Payable 43,500
Prepaid Insurance 6,000
Advertising Expense 33,500
Rent Expense 34,000
Retained Earnings 14,100
Salaries and Wages Expense 118,740
Sales Revenue 904,000
Salaries and Wages Payable 6,000
Sales Returns and Allowances 20,000
Utilities Expense 10,300
Answer:
Net Income = $35,360
Ending retained earnings = $37,460
Total Asset = Liabilities and Stockholders' Equity = 148,360
Explanation:
Note: This question is not complete as the requirement is omitted. The complete question is therefore presented before answering the question. See the attached pdf file for the complete question with the requirement.
The answer to the question is now presented as follows:
Prepare a classified balance sheet. (List current assets in order of liquidity.)
Note: See the third part of the attached excel file for the classified balance sheet.
A classified balance sheet can be described as a balance sheet that shows assets, liabilities, and shareholders' equity of a firm that are put or classified into different subcategories of accounts.
Note that in the attached excel file, the Income Statement and the Retained Earning Statement are prepared first in order to obtain the ending retained earning that is needed under the Stockholders' Equity in the classified balance sheet.