Answer:
$140,000
Explanation:
The computation of adjusted balance in the Accumulated Depreciation account is shown below:-
adjusted balance in the Accumulated Depreciation account = unadjusted normal balance + Credit Accumulated Depreciation account
= $120,000 + $20,000
= $140,000
Hence the adjusted balance in the Accumulated Depreciation account is $140,000.
Galehouse Gas Stations Inc. expects sales to increase from $1,510,000 to $1,710,000 next year. Galehouse believes that net assets (Assets − Liabilities) will represent 30 percent of sales. His firm has an 8 percent return on sales and pays 45 percent of profits out as dividends. a. What effect will this growth have on funds?
Answer:
Cash position reduces by -$24,760
Explanation:
If Gatehouse sales increases as expected the increase will be
1,710,000 - 1,510,000 = $200,000
Net assets is expected to represent 50% of sales, so this sales increase is expected to have Asset Buildup of:
0.50 * 200,000 = $100,000
Asset has a negative balance so it is -$100,000
Return on sales is 8% of the new sales value:
0.080 * 1,710,000 = $136,800 (profit)
45% of profit is paid out as dividend
0.45 * 136,800= -$61,560
It is negative as it represents cash going out
Total cash position = -100,000 + 136,800 - 61,560
Total cash position = -$24,760
Cash position reduces by -$24,760
Consumer tastes and Preferences:Diets Promote Low Car Craze(low carbohydratefood). What happens to the demand for pasta (a high carb food)?
Answer
Are there any answer choices
Explanation:
14. The Martins used records of their past expenditures to complete their budget
sheet for the upcoming new year. If their average monthly living expenses are
$912, their fixed monthly expenses averaged $1,457, and their annual expenses
are $3,078, what amount should they expect to spend monthly?
Answer:
Expected monthly expenses = $2369
Given:
Average monthly living expenses = $912
Fixed monthly expenses = $1,457
Annual expenses = $3,078
Find:
Expected monthly expenses
Computation:
Expected monthly expenses = Average monthly living expenses + Fixed monthly expenses
Expected monthly expenses = $912 + $1457
Expected monthly expenses = $2369
Why do companies use predetermined overhead rates rather than actual manufacturing overhaed costs to apply overhead to job?
Answer:
to avoid delaying the product costing exercise.
Explanation:
The actual overhead costs are usually not readily available when costing a product. Waiting for the actual costs would delay the product costing exercise, thus a company uses estimates (predetermined overhead rates) and later adjust for the over or under - application when actual information is available.
Which item are mis-categorized balance sheet?
Balance Sheet
Liabilities
A. Accounts Payable
B. Prepaid expenses
C. Accounts Receivable
D. Accrued expenses
E. Unearned revenue
F. Long-term debt
1. A
2. B
3. C
4. D
5. E
6. F
Answer:
B and C are mis-categorized balance sheet.
Explanation:
A. Accounts Payable: Accounts payable refers to amounts that are due to be paid by a company to vendors or suppliers of goods or services received without making payments yet. This is a liability item and the categorization is correct.
B. Prepaid expenses: These are advanced payments made by a company for commodities yet to receive. This is an asset item and the categorization is not correct.
C. Accounts Receivable: These refers to amounts that are owed to a company by its debtors for goods or services supplied to them for which they are yet to pay for. This is an asset item and the categorization is not correct.
D. Accrued expenses: These refers to expenses that have been incurred by a company but which the company is yet to pay for. This is a liability item and the categorization is correct.
E. Unearned revenue: This refers to advanced payment received by a company in respect of goods it is yet to deliver or services it is yet to render. This is a liability item and the categorization is correct.
F. Long-term debt: This refers to the amount of of outstanding debt of business with a maturity of 12 months or longer. This is a liability item and the categorization is correct.
Conclusion
Only B and C are mis-categorized balance sheet. The reason is that they are both asset items, current assets to be specific, not liability items.
5. Suppose Hillard Manufacturing sold an issue of bonds with a 12-year maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments. Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 5%. At what price would the bonds sell
Answer:
Price of bonds = $1,389.73
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond for Hillard can be worked out as follows:
Step 1
Calculate the PV of interest payments
Semi annual interest payment
= 10% × 1,000 × 1/2 =50
PV of interest payment
A ×(1- (1+r)^(-n))/r
r- semi-annual yield = 5%/2 = 2.5%
n- 10× 2 = 20.
Note that the bonds now have 10 years to maturity because it was issued 2 years ago
PV on interest = 50 × (1-(1.025^(-20)/0.0425 = 779.45
Step 2
PV of redemption Value
PV = $1,000 × (1.025)^(-20) = 610.27
Step 3
Price of bond
= 779.45+ 610.27 = $1,389.73
Price of bonds = $1,389.73
For 2019, Bargain Basement Stores reported $11,500 of sales and $5,000 of operating costs (including depreciation). The company has $20,500 of total invested capital, the weighted average cost of that capital (the WACC) was 11%, and the federal-plus-state income tax rate was 25%. What was the firm's Economic Value Added (EVA), i.e., how much value did management add to stockholders' wealth during 2019
Answer:
Economic Value Added (EVA) = $2,620
Explanation:
WACC = 11%
Capital = $20,500
Sales = $11,500
Operating cost = $5,000
Tax rate = 25%
EBIT = Sales - Operating cost
EBIT = $11,500 - $5,000
EBIT = $6,500
Economic Value Added (EVA) = EBIT (1 - T) - (WACC * Capital)
Economic Value Added (EVA) = 6,500*( 1 - 0.25) - (0.11 * $20,500)
Economic Value Added (EVA) = $4,875 - $2,255
Economic Value Added (EVA) = $2,620
Frank is worried about identity theft. He does not like to give access to his checking account to anyone but the bank.
What is the best option for him to pay his bills?
O Frank should telephone in his payment to the company.
Frank should pay his bill online.
Frank should set up automatic withdrawals for the company he is paying.
O Frank should mail a check to the company.
Answer:
Frank should mail a check to the company.
Explanation:
Got it right on Edge!
Frank should mail a check to the company.
What is a mail?A system for physically delivering postcards, letters, and packages is known as the mail or post. The term "mail" in American English often refers to the government service that collects and delivers letters and packages. Anything that is sent to your mail box or post office box is considered mail, including letters, bills, packages, periodicals, and other items sent by the postal service. The equivalent of mail on the internet is email.
In addition to conveying mail, postal authorities frequently perform other duties. In some nations, a postal, telegraph, and telephone (PTT) service also manages the telephone and telegraph networks in addition to the postal system.
What is a company?A group of people can get together to form a company, which is a legal body used to conduct and manage commercial or industrial business operations. Either public or private companies can exist; the former distributes equity to shareholders on a stock exchange, whereas the latter is privately held and unregulated. Companies have a significant role in the health of an economy by providing jobs and luring in disposable income to fuel expansion. The business lines of an organization rely on its structure, which can be a company, a partnership, or even a sole proprietorship. A company can engage into contracts, sue (or be sued), borrow money, pay taxes, own property, and employ people, among other legal rights and obligations, just like an individual can.
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Comprehensive CVP analysis "I’ll never understand this accounting stuff," Blake Dunn yelled, waving the income statement he had just received from his accountant in the morning mail. "Last month, we sold 2,000 stuffed State University mascots and earned $6,565 in operating income. This month, when we sold 3,000 I thought we’d make $9,848. But this income statement shows an operating income of $11,615! How can I ever make plans if I can’t predict my income? I’m going to give Janice one last chance to explain this to me," he declared as he picked up the phone to call Janice Miller, his accountant.
Answer:
The problem with Blake's reasoning is that he believes that all costs are variable, and that is not true. In order to predict future profits, he divided $6,565 by 2,000 stuffed mascots = $3.2825 profit per stuffed mascot sold. But when sales increased to 3,000 units, the profits increased much more.
This happens because some costs are variable and change directly with the number of units sold, while others are fixed and remain the same regardless of the number of units sold.
The question is incomplete, the accounts are missing, so I looked for them:
February March
Sales revenue $25,000 $37,500
Cost of goods sold 10,000 15,000
Gross profit 15,000 22,500
Rent expense 1,500 1,500
Wages expense 3,500 5,000
Shipping expense 1,100 1,650
Utilities expense 750 750
Advertising expense 1,000 1,400
Insurance expense 585 585
Operating income $6,565 $11,615
The income statement using the contribution margin format would be as follows:
Income Statement Year 1 Year 2
Sales revenue $25,000 $37,500
Variable costs:
Cost of goods sold $10,000 $15,000 Wages expense* $3,000 $4,500 Shipping expense $1,100 $1,650 Advertising expense* $800 $1,200Contribution margin $10,100 $15,150
Period costs:
Wages expense* $500 $500 Advertising expense* $200 $200 Rent expense $1,500 $1,500 Insurance expense $585 $585 Utilities expense $750 $750Net income $6,565 $11,615
*high low cost method for wages expense and advertisement expense:
variable wages expense = ($5,000 - $3,500) / (3,000 - 2,000) = $1.50 per unit
fixed wages expense = $5,000 - (3,000 x $1.50) = $500
variable advertising expense = ($1,400 - $1,000) / (3,000 - 2,000) = $0.40 per unit
fixed advertising expense = $1,400 - (3,000 x $0.40) = $200
What would be a government controlled sector of the economy.
The minimum acceptable expected rate of return on a project of a specific risk is the:________
A. project cost of capital.
B. company cost of capital.
C. risk-free rate of return.
D. project beta times market risk premium.
Answer: A. project cost of capital.
Explanation:
The project cost of capital is the minimum expected rate of project given the type of risk that is attached to it.
When a project is of a certain risk, the company will need a certain rate of return to compensate it for that risk.
This rate is the cost of capital and it is usually based on the company's Weighted Average Cost of Capital (WACC) which measure the cost the company incurs when using equity and debt to raise capital.
The project cost of capital will be a rate that compensates the company enough to enable it compensate its capital providers.
Under The Factoring Arrangement, The Factor
Answer:
Hope this may help you
If the inflation rate was 2.40% and the nominal interest rate was 7.20% over the last year, what was the real rate of interest over the last year? Disregard cross-product terms; that is, if averaging is required, use the arithmetic average. Round intermediate calculations to four decimal places.
Answer:
the real rate of interest is 4.80%
Explanation:
The computation of the real rate of interest is shown below:
Real rate of interest is
= Nominal rate of interest - inflation rate
= 7.20% - 2.40%
= 4.80%
It is the difference between the nominal rate of interest and the inflation rate and the same is to be considered
hence, the real rate of interest is 4.80%
Wacky Entertainment Inc. is in the middle a copyright lawsuit. Next month, the company anticipates winning $500,000 in the settlement. How should Wacky Entertainment record the $500,000 this month?
a. As a gain on the income statement
b. As a liability on the income statement
c. As revenue on the income statement
d. As a footnote of the financial statements
e. It should not be reported
Answer: d. As a footnote of the financial statements
Explanation:
The settlement that the company expects is contingent in nature and should only be recognised in the statements if it is probable that it will happen.
The company anticipates that it will win this therefore making it probable that it will do so. The amount is also quantifiable as well. However, going by the Accrual principle in Accounting, revenue is only recorded when earned.
The Gain Contingent will have to be recorded as a footnote until it is realized then it can be recorded.
Clarence draws detailed plans for highways and bridges. His job is best described as one focused on . Denise assembles roofing materials on new buildings. Her job is best described as one focused on .
Answer:
Clarence: architecture
Denise: construction
Explanation:
just finished the question.
Answer:
Clarence wants to be an architect and Denise wants to be a construction worker.
Explanation:
If a family spends its entire budget in a given time frame, the family can afford either 90 cans of soup or 60 frozen dinners. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of one extra can of soup in the time frame?\
Answer:
60 frozen dinners is better
Explanation:
protect the fundamental rights and liberties of citizens.
O Legislation and common law
O Equivalent branches of the government
The legislative branch of the government
The executive office of the United States
Answer:
I believe your answer is AWhich of the following is true about organizational change?
A. Organizations subscribe to only one set of values.
B. The basic underlying assumptions of organizational culture are relatively easy to change.
C. Organizational change is more likely to succeed if there is a great deal of inconsistency between individual values and organizational values.
D. Organizations are less likely to accomplish corporate goals when employees perceive an inconsistency between the espoused values of the organization and their own personal characteristics.
Answer:
D. Organizations are less likely to accomplish corporate goals when employees perceive an inconsistency between the espoused values of the organization and their own personal characteristics.
Explanation:
When employees are not aligned or do not agree with company values such that their individual/personal values contradict that of the company, there is high likelihood that the company would be to reach it's company goals. This is because employees have to synchronize and internalize company values with theirs in order to move to achieve company goals. Example of some of the values of a company go against the moral values of some of the employees, there is an inconsistency here that could lead to less motivation from employees in achieving company goals
Organizations are less likely to accomplish corporate goals when employees perceive an inconsistency between the espoused values of the organization and their own personal characteristics. Option (d) is correct.
There is a strong possibility that the firm won't achieve its objectives if employees are not in line with or disagree with the company's principles to the extent that their personal and individual beliefs do. This is due to the fact that in order to proceed toward achieving company goals, personnel must synchronize and internalize company values with their own.
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Debt management ratios measure the extent to which a firm uses financial leverage and the degree of safety afforded to creditors . They include the: (1) Debt-to-capital ratio, (2) Times interest earned ratio (TIE), and (3) EBITDA coverage ratio. The first ratio analyzes debt by looking at the firm's balance sheet , while the last two ratios analyze debt by looking at the firm's income statement . The debt-to-capital ratio measures the percentage of funds provided by -Select- . Its equation is:
Answer:
Provided by total capital, which is equal to interest bearing debt in favor of the company, plus stockholder's equity like preferred stock and common stock.
The debt-to-capital ratio formula is:
Debt-to-Capital Ratio = Total Liabitilies / Total Capital
If the company does not have any interest bearing debt in its favor, then, the formula can be written as:
Debt-to-Capital Ratio = Total Liabilities / Stockholder's Equity
uction Services started the year with total assets of and total liabilities of . The revenues and the expenses for the year amounted to and , respectively. During the year, the company did not issue any common stock, but it distributed dividends of . Calculate Dynamic's net income for the year.
Answer: $20,000
Explanation:
Net Income is the amount from revenue that the company made over expenses. It is therefore;
= Revenue - Expenses
= 110,000 - 90,000
= $20,000
Note: Dividends are not considered in the calculation of Net Income as they are not expenses.
Bayside, Inc. 2017 Income Statement ($ in thousands) Net sales $ 6,620 Cost of goods sold 4,240 Depreciation 355 Earnings before interest and taxes $ 2,025 Interest paid 30 Taxable income $ 1,995 Taxes 698 Net income $ 1,297 Bayside, Inc. 2016 and 2017 Balance Sheets ($ in thousands) 2016 2017 2016 2017 Cash $ 110 $ 215 Accounts payable $ 1,540 $ 1,885 Accounts rec. 990 830 Long-term debt 810 610 Inventory 1,680 2,070 Common stock 3,240 3,080 Total $ 2,780 $ 3,115 Retained earnings 880 1,130 Net fixed assets 3,690 3,590 Total assets $ 6,470 $ 6,705 Total liab. & equity $ 6,470 $ 6,705 What is the equity multiplier for 2017? Multiple Choice 1.59 times 2.08 times 2.18 times 1.02 times .53 times
Answer:
1.59 times
Explanation:
Average total assets = Beginning total assets + Ending Total assets / 2
Average total assets = 6,470 + 6,705 / 2
Average total assets = $6,587.5
Beginning Total equity = Common stock + Retained earnings
Beginning Total equity = $3,240 + $3,080
Beginning Total equity = $6,320
Ending Total equity = Common stock + Retained earnings
Ending Total equity= $880 + $1,130
Ending Total equity = $2,010
Average total equity = Beginning Total equity + Ending Total equity / 2
Average total equity = $6,320 + $2,010 / 2
Average total equity = $4,165
Equity multiplier for 2017 = Average total assets / Average total equity
Equity multiplier for 2017 = $6,587.5 / $4,165
Equity multiplier for 2017 = 1.581632653061224
Equity multiplier for 2017 = 1.5816 times
he following amounts were reported by Howe Company before adjusting its overapplied manufacturing overhead of $16,000. Raw Materials Inventory $80,000 Finished Goods Inventory $120,000 Work in Process Inventory $200,000 Cost of Goods Sold $1,460,000. What is the amount Howe will report as cost of goods sold after it disposes of its overapplied overhead
Answer: $1,444,000
Explanation:
The Cost of Goods sold for a manufacturing company includes the Manufacturing overhead. If the overhead was overapplied, the COGS is inflated and needs a downward adjustment.
COGS after overapplied overhead is disposed of = COGS before disposal - overapplied amount
= 1,460,000 - 16,000
= $1,444,000
What is the correct entry for a $100 purchase of supplies on credit?
a) Debit Cash: $100 & Credit Supplies: $100
b) Debit Accounts Payable: $100 & Credit Cash: $100
c) Debit Supplies: $100 & Credit Accounts Payable: $100 Debit Accounts Payable: $100 & Credit Supplies: $100
d) Debit Accounts Receivable: $100 & Credit Cash: $100
the correct answer to this problem is c
The entry will include Debit Supplies for $100 and Credit Accounts Payable for $100.
A purchase of supplies on credit will be treated as Account payable under journal entry because you are the Debtor will $100 for supplier who is the Creditor.
Thus, the journal entry is recorded as below.Date Account & Explanation Debit Credit
Supplies $100
Account payable $100
(Being a record to record purchase credit)
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If you stop and take the time to ask yourself if you are being realistic about
your skills, perceptions, and judgements, you are more likely to avoid which
bias?
hindsight bias
escalation of commitment
overconfidence bias
Previous
Next
The correct answer is Overconfidence bias
Explanation:
Overconfidence bias is the result of an excessive and unrealistic estimation of one's skills, knowledge, ideas, etc even to the point the individual considers himself better than others or does not have an objective perception about himself. This type of bias can lead to negative consequences, for example, by overestimating his ability to pass a test a student might choose not to study at all and then fail the test. Moreover, this can be avoided by assessing realistically one's skills, judgments, etc. According to this, the type of bias that can be avoided is overconfidence bias.
The Coca-cola company reported its 1Q-2014 results on or before April 12,204
a. True
b. False
Cyber Security Systems had sales of 3,300 units at $65 per unit last year. The marketing manager projects a 20 percent increase in unit volume sales this year with a 40 percent price increase. Returned merchandise will represent 10 percent of total sales. What is your net dollar sales projection for this year?
Answer:
$324,324
Explanation:
Next year projected sales = 3300 * ( 1 + 0.20)
= 3300 * 1.20
= 3960 units
Next year price = 55 * (1+0.40)
= 65 * 1.40
= $91
Total sales = 3960 * $91
Total sales = $360,360
Sales return = $360,360 * 10% = $36,036
Net sales = Total sales - Sales Return
Net sales = $360,360 - $36,036
Net sales = $324,324
What is something an escrow agent should never do?
a) Receive money from lenders.
b) Offer legal advice.
c) Obtain title insurance.
d) Prepare closing documents.
Answer: Obtain title insurance
Explanation:
An escrow agent is someone who is trusted and holds property for third parties in case there's a ongoing disagreement that's being settled or in case whereby a transaction is being finalized and this role is usually performed by an attorney
An escrow agent can:
• Receive money from lenders.
• Offer legal advice.
• Prepare closing documents.
Therefore, an escrow agent should not obtain title insurance.
Exercise 2-54 (Static) Gross Margin and Contribution Margin Income Statements (LO 2-7) The following data are from the accounting records of Niles Castings for year 2. Units produced and sold 85,000 Total revenues and costs Sales revenue $ 264,000 Direct materials costs 68,000 Direct labor costs 34,000 Variable manufacturing overhead 17,000 Fixed manufacturing overhead 44,000 Variable marketing and administrative costs 13,600 Fixed marketing and administrative costs 32,000 Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement.
Answer:
a. Prepare a gross margin income statement.
Sales revenue $264,000
Less Cost of Goods Sold
Cost of Goods Manufactured ($163,000)
Gross Profit $101,000
Less Expenses :
Variable marketing and administrative costs ($13,600)
Fixed marketing and administrative costs ($32,000)
Net Income/ (Loss) $55,400
b. Prepare a contribution margin income statement.
Sales revenue $264,000
Less Cost of Goods Sold
Cost of Goods Manufactured ($119,000)
Contribution $145,000
Less Expenses :
Fixed manufacturing overhead ($44,000)
Variable marketing and administrative costs ($13,600)
Fixed marketing and administrative costs ($32,000)
Net Income/ (Loss) $55,400
Explanation:
Manufacturing Costs Schedule - Absorption Costing
Direct materials $68,000
Direct labor $34,000
Variable manufacturing overhead $17,000
Fixed manufacturing overhead $44,000
Total Manufacturing Costs $163,000
This is the costs of sales for gross margin income statement.
Manufacturing Costs Schedule - Variable Costing
Direct materials $68,000
Direct labor $34,000
Variable manufacturing overhead $17,000
Total Manufacturing Costs $119,000
This is the cost of sales for contribution margin income statement.
Discuss and Implement the Customer Value-Driven Marketing Strategy in current market of Pakistan. Apply each concept with 3 examples. (200 words )
subject marketing.
Answer:
haha and healthy
Alumbat Corporation has $800,000 in debt outstanding, and pays an interest rate of 10 percent annually on its bank loan. Alumbat's annual sales are $3,200,000, its average tax rate is 40 percent, and its net profit margin on sales is 6 percent. If the company does not maintain a TIE ratio of at least 4 times, its bank will refuse to renew its loan, and bankruptcy will result. Alumbat's current times interest earned ratio is:
Answer: 5.0
Explanation:
Times interest earned ratio = Earnings before Interest and Tax / interest
Interest = 800,000 * 10%
= $80,000
Net Income = 6% of sales
= 6% * 3,200,000
= $192,000
Taxes are accounted for already so to get the taxable income;
Earnings before tax = 192,000 / ( 1 - Tax rate)
= 192,000 / ( 1 - 0.4)
= $320,000
Earnings before Interest and Tax = 320,000 + 80,000
= $400,000
Times interest earned ratio = 400,000/80,000
= 5.0