Answer:
A. Totals Sales in Territories I and II are as follows:
Product T Totals Sales in Territories I and II = $3,060,000
Product X Totals Sales in Territories I and II = $5,460,000
B. Required Production Units in March are as follows:
Product T Required Production Units in March = 514,000
Product T Required Production Units in March = 385,000
Explanation:
A. Prepare a sales budget.
Note: See part a of the attached excel file for sales budget and the formulae used in the calculations.
From the attached excel file, Totals Sales in Territories I and II are as follows:
Product T Totals Sales in Territories I and II = $3,060,000
Product X Totals Sales in Territories I and II = $5,460,000
B. Prepare a production budget.
Note: See part b of the attached excel file for sales budget and the formulae used in the calculations.
From the attached excel file, Required Production Units in March are as follows
Product T Required Production Units in March = 514,000
Product X Required Production Units in March = 385,000
McElroy, Inc., produces a single model of a popular cell phone in large quantities. A single cell phone moves through two departments, assembly and testing. The manufacturing costs in the assembly department during March follow:
Direct materials $187,500
Conversion costs 163,800
$351,300
The assembly department has no beginning Work-in-Process Inventory. During the month, it started 30,000 cell phones, but only 26,000 were fully completed and transferred to the testing department. All parts had been made and placed in the remaining 4,000 cell phones, but only 50% of the conversion had been completed. The company uses the weighted-average method of process costing to accumulate product costs.
Required:
a. Compute the equivalent units and cost per equivalent unit for March in the assembly department.
b. Compute the costs of units completed and transferred to the testing department.
c. Compute the costs of the ending work-in-process.
Answer:
Part a.
Equivalent units : Materials = 30,000 units ,Conversion Costs = 28,000 units
Cost per equivalent unit : Materials = $6.25 Conversion Costs = $5.85
Part b.
$314,600
Part c.
$36,700
Explanation:
Step 1 : Equivalent units
Materials
Units Completed and Transferred (26,000 x 100 %) 26,000
Units in Ending Work in Process (4,000 x 100%) 4,000
Equivalent units with respect to Materials 30,000
Conversion Costs
Units Completed and Transferred (26,000 x 100 %) 26,000
Units in Ending Work in Process (4,000 x 50%) 2,000
Equivalent units with respect to Materials 28,000
Step 2 : Cost per equivalent unit
Materials = $187,500 ÷ 30,000 = $6.25
Conversion Costs = $163,800 ÷ 28,000 = $5.85
Total unit cost = $6.25 + $5.85 = $12.10
Step 3 : Costs of units completed and transferred to the testing department
Costs of units completed and transferred = 26,000 x $12.10 = $314,600
Step 4 : Costs of the ending work-in-process
Costs of the ending work-in-process = 4,000 x $6.25 + 2,000 x $5.85 = $36,700
During the year, Belyk Paving Co. had sales of $2,425,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,335,000, $635,000, and $450,000, respectively. In addition, the company had an interest expense of $275,000 and a tax rate of 25%. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible). Calculate the firm's net new long-term debt added during the year.
Answer:
See below
Explanation:
Sales
$2,425,000
Less:
Cost of goods sold
($1,335,000)
Administration and selling expense
($635,000)
Depreciation
($450,000)
EBIT
$5,000
Less:
Interest
($275,000)
No tax
Net income/loss
-$270,000
Operating cash flow = $5,000 + $450,000 - $0 = $500,000
Cash flow from assets = Operating cash flow - Change in networking capital - Net capital spending
= $500,000 - $0 - $0
= $500,000
Cash flow to shareholders = Dividends - New equity
= $0 - $0
= $0
Cash flow to creditors = Cash flow from assets - Cash flow to shareholders
= $500,000 - $0
= $500,000
Therefore, new long term debt added during the year is;
= Interest - Cash flow to creditors
= $275,000 - $500,000
= $225,000
Jeremiah Corporation purchased debt securities during 2021 and classified them as securities available-for-sale: Security Cost Fair Value, 12/31/2021 A $ 42,500 $ 49,500 B 77,500 71,000 C 28,100 41,500 All declines are considered to be temporary. How much gain will be reported by Jeremiah Corporation in the December 31, 2021, income statement relative to the portfolio
Answer: $0
Explanation:
Available-for-sale securities simply refers to the debt securities that are bought but with the intention that they'll be sold before they mature. They're typically reported at their fair value.
The gain that will be reported by Jeremiah Corporation in the December 31, 2021, income statement relative to the portfolio is $0. This is because for available-for-sale securities, there'll be no reports on holding gains or losses incurred.
Which of the following statements is false? A) Price determination is the key element in any market system. B) Input prices influence a firm's costs of production. C) Output prices influence a firm's revenues. D) While managers must understand how output prices are determined, determination of input prices is irrelevant because it is beyond the manager's control.
Answer:
option D) While managers must understand how output prices are determined, determination of input prices is irrelevant because it is beyond the manager's control.
Explanation:
A price system is simply defined as a part of any economic system. It uses prices usually expressed in monetary form for goods and services valuation and distribution and also the factors of production.
A Pricing Manager helps to determine pricing schemes for firms products and services. The scope of work entailss co-ordination with production departments on cost of making and working with staff in marketing especially on appropriate campaigns and promotions and also they assist with pricing bargaining of customers intent.
Price Determination is getting or deriving the cost of goods sold and services offered/ rendered in the free market. The forces of demand and supply always determine the prices of goods and services in the market system.
Carlton Soup Company makes crackers, bread, and soup. Presented here are the items listed on a simplified version of its recent balance sheet (dollars in millions) presented in alphabetical order: Accounts payable $ 668 Other assets $ 132 Accounts receivable 595 Other current assets 70 Accrued expenses 599 Other current debt 1,080 Cash and cash equivalents 300 Other noncurrent liabilities 3,806 Common stock, $0.0375 par value 386 Property, plant, and equipment, net 2,397 Intangible assets 3,023 Retained earnings 936 Inventories 958 Required: Prepare a classified consolidated balance sheet for Carlton Soup for the current year (ended July 31). (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)'
Answer:
Carlton Soup Company
Classified Balance Sheet as of July 31 (dollars in millions)
Assets
Current Assets:
Cash and cash equivalents $300
Accounts receivable 595
Inventories 958
Other current assets 70
Total current assets $1,923
Non-current assets:
Property, plant, and equipment, net 2,397
Other assets 132
Intangible assets 3,023
Total non-current assets $5,552
Total assets $7,475
Liabilities and Equity
Current Liabilities:
Accounts payable $ 668
Accrued expenses 599
Other current debt 1,080
Total current liabilities $2,347
Other noncurrent liabilities 3,806
Total liabilities $6,153
Equity:
Common stock, $0.0375 par value 386
Retained earnings 936
Total equity $1,322
Total liabilities and equity $7,475
Explanation:
a) Data and Calculations:
Cash and cash equivalents 300
Accounts receivable 595
Inventories 958
Other current assets 70
Property, plant, and equipment, net 2,397
Other assets 132
Intangible assets 3,023
Accounts payable $ 668
Accrued expenses 599
Other current debt 1,080
Other noncurrent liabilities 3,806
Common stock, $0.0375 par value 386
Retained earnings 936
Grover Corp. manufactures three products, and is currently facing a labor shortage. The selling price, costs, and labor requirements of the three products are as follows: Product A Product B Product C Selling price $ 44.00 $ 18.00 $ 28.50 Variable cost per unit $ 28.00 $ 15.00 $ 27.00 Direct labor hours per unit 2.00 1.50 .50 In what order should Grover Corp. prioritize production of its products to maximize profit during the labor shortage
Answer:
A, C, B
Explanation:
Calculation to determine In what order should Grover Corp. prioritize production of its products to maximize profit during the labor shortage
Product A Product B Product C
Selling price $ 44.00 $ 18.00 $ 28.50
Less Variable cost per unit
$ 28.00 $ 15.00 $ 27.00
=Contribution margin per unit
$16.00 $3.00 $1.50
÷Direct labor hours per unit 2.00 1.50 .50
=Contribution margin per labor hour
$8.00 $2.00 $3.00
PRODUCT A=$16.00÷2.00
PRODUCT A=$8.00
PRODUCT B=$3.00÷1.50
PRODUCT B=$2.00
PRODUCT C=$1.50÷.50
PRODUCT C=$3.00
RANKING:
PRODUCT A=$8.00
PRODUCT C=$3.00
PRODUCT B=$2.00
Therefore based on the above calculation the order that Grover Corp.should prioritize production of its products to maximize profit during the labor shortage will be from the highest Contribution margin per labor hour to the lowest which are A,C,B
Answer: A, C, B.
Explanation:
To solve this question based on the information given goes thus:
The Contribution margin per labor hour for Product A will be:
= ($44 - $28) / 2.0
= $16/2.0
= $8
The Contribution margin per labor hour for Product B will be:
= ($18 - $15) / 1.50
= $2
The Contribution margin per labor hour for Product C will be:
= ($28.50 - $27) / 0.50
= $1.50/0.5
= $3
Therefore, the order that Grover Corp. should use to prioritize production of its products to maximize profit during the labor shortage will be:
A, C, B.
Described below are certain transactions of Pharoah Company for 2021:
1. On May 10, the company purchased goods from Fox Company for $77,800, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18.
2. On June 1, the company purchased equipment for $87,600 from Rao Company, paying $24,000 in cash and giving a one-year, 9% note for the balance.
3. On September 30, the company discounted at 11% its $180,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $162,000.
Required:
Prepare the journal entries necessary to record the transactions above using appropriate dates.
Answer:
May 10, 2021
Dr Purchases/Inventory $76,244
Cr Accounts Payable $76,244
May 18, 2021
Dr Accounts Payable $76,244
Cr Cash $76,244
June 1, 2021
Dr Equipment $87,600
Cr Cash $24,000
Cr Notes Payable $63,600
September 30, 2021
Dr Cash $162,000
Dr Discount on Notes Payable $18,000
Cr Notes Payable $180,000
Explanation:
Preparation of the journal entries necessary to record the transactions above using appropriate dates
May 10, 2021
Dr Purchases/Inventory $76,244
Cr Accounts Payable $76,244
[$77,800-(2%*$77,800)]
May 18, 2021
Dr Accounts Payable $76,244
Cr Cash $76,244
[$77,800-(2%*$77,800)]
June 1, 2021
Dr Equipment $87,600
Cr Cash $24,000
Cr Notes Payable $63,600
($87,600-$24,000)
September 30, 2021
Dr Cash $162,000
Dr Discount on Notes Payable $18,000
($180,000-$162,000)
Cr Notes Payable $180,000
Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows:
Account Financial Major Possible Account
Statement Classificaton Number
Accounts Payable
Accounts Receivable
Accumulated Depreciation—Office Equipment
Accumulated Depreciation—Store Equipment
Advertising Expense
Cash
Common Stock
Cost of Merchandise Sold
Delivery Expense
Depreciation Expense—Office Equipment
Depreciation Expense—Store Equipment Dividends
Income Summary
Insurance Expense
Interest Expense
Land
Merchandise Inventory
Miscellaneous Administrative Expense
Miscellaneous Selling Expense
Notes Payable
Office Equipment
Office Salaries Expense
Office Supplies
Office Supplies Expense
Prepaid Insurance
Rent Expense
Retained Earnings
Salaries Payable
Sales
Sales Salaries Expense
Store Equipment
Store Supplies
Store Supplies Expense
Assign account numbers and specify whether each account would appear on the balance sheet or income statement order, as illustrated below. Each account number is three digits: the first digit is to indicate the major classification (1 for assets, for example); the second digit is to indicate the subclassification (11 for current assets, for example); and the third digit is to identify the specific account (110 for Cash, 112 for Accounts Receivable, 114 for Merchandise Inventory, etc.).
Answer:
Monet Paints Co.
Financial Major Possible
Statement Classification Account No.
Accounts Payable Balance Sheet Liabilities 211
Accounts Receivable Balance Sheet Assets 112
Accumulated Depreciation
—Office Equipment Balance Sheet Assets (contra) 123
Accumulated Depreciation
—Store Equipment Balance Sheet Assets (contra)
Advertising Expense Income statement Expenses 331
Cash Balance Sheet Assets 110
Common Stock Balance Sheet Equity 401
Cost of Merchandise Sold Income statement Expenses 330
Delivery Expense Income statement Expenses 332
Depreciation Expense Income statement Expenses 333
—Office Equipment
Depreciation Expense Income statement Expenses 334
—Store Equipment Dividends
Income Summary Income statement
Insurance Expense Income statement Expenses 335
Interest Expense Income statement Expenses 336
Land Balance Sheet Assets 121
Merchandise Inventory Balance Sheet Assets 114
Miscellaneous Admin Expense Income statement Expenses 337
Miscellaneous Selling Expense Income statement Expenses 338
Notes Payable Balance Sheet Liabilities 213
Office Equipment Balance Sheet Assets 122
Office Salaries Expense Income statement Expenses 339
Office Supplies Balance Sheet Assets 113
Office Supplies Expense Income statement Expenses 340
Prepaid Insurance Balance Sheet Assets 115
Rent Expense Income statement Expenses 341
Retained Earnings Balance Sheet Equity 403
Salaries Payable Balance Sheet Liabilities 212
Sales Income Statement Revenue 501
Sales Salaries Expense Income Statement Expenses 342
Store Equipment Balance Sheet Assets 123
Store Supplies Balance Sheet Assets 116
Store Supplies Expense Income Statement Expenses 343
Explanation:
Chart of accounts lists of all accounts of Monet Paints Company. The list provides a bird's eye view of every area of the business that generates either expenditure or revenue. The account types which are usually maintained by most companies include Revenue, Expenses, Assets, Liabilities, and Equity. Revenue and expenses are summarized on the income statement, while assets, liabilities, and equity are listed on the balance sheet.
The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 15,000 shares authorized and 7,500 shares issued, 2,500 shares outstanding $75,000 Paid-in capital in excess of par value, common stock 45,000 Retained earnings 20,000 Treasury stock 27,250 Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is:
Answer:
5,000
Explanation:
Calculation for what the number of shares of treasury stock is:
Using this formula
Number of shares of treasury stock= Shares issued - Shares outstanding
Let plug in the formula
Number of shares of treasury stock= 7,500 - 2,500
Number of shares of treasury stock= 5,000
Therefore Number of shares of treasury stock is 5,000
Mayer Company uses a process cost system. The Molding Department adds materials at the beginning of the process and conversion costs are incurred uniformly throughout the process. Work in process on May 1 was 75% complete and work in process on May 31 was 40% complete.Complete the Production Cost Report for the Molding Department for the month of May using the above information and the information below:MAYER COMPANY Molding Department Production Cost Report For the Month Ended May 31, 2013 Equivalent Units: Quantities Physical Units Materials Conversion costsUnits to be accounted for Work in process, May 1 8,000 Started into Production 27,000 Total units 35,000 Units accounted for Transferred out 30,000 Work in process, May 31 5,000 Total units 35,000 Costs Unit costs Materials Conversion Costs TotalCosts in May $140,000 $160,000 $300,000Equivalent units Unit costs Costs to be accounted for Work in process, May 1 $60,000Started into production $240,000Total costs $300,000Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, May 31 Materials Conversion costs Total cost $300,000
Answer:
Mayer Company
MAYER COMPANY
Molding Department
Production Cost Report
For the Month Ended May 31, 2013
Units to be accounted for
Work in process, May 1 8,000
Started into Production 27,000
Total units 35,000
Equivalent Units:
Units accounted for Units Materials Conversion
Transferred out 30,000 30,000 30,000
Work in process, May 31 5,000 5,000 2,000
Total equivalent units 35,000 35,000 32,000
Costs Unit costs Materials Conversion Costs Total
Costs in May $140,000 $160,000 $300,000
Equivalent units 35,000 32,000
Unit costs $4.00 $5
Costs to be accounted for
Work in process, May 1 $60,000
Started into production $240,000
Total costs $300,000
Cost Reconciliation Schedule Materials Conversion Total cost
Costs accounted for
Transferred out $120,000 $150,000 $270,000
Work in process, May 31 20,000 10,000 30,000
Total costs accounted for $140,000 $160,000 $300,000
Explanation:
a) Data and Calculations:
Beginning WIP 75% complete to conversion
Ending WIP 40% complete to conversion
Work in process, May 31 5,000
Materials = 5,000 (100% * 5,000)
Conversion 2,000 (40% * 5,000)
It is the least expensive automobile insurance coverage.
A) Liability
B) Collision
C) Comprehensive
D) Full
Answer:
C
Explanation:
As far as coverages goes, Comprehensive is the least expensive. However, liability is the basic coverage required on most insurance policies. Many states require a minimum insurance coverage of liability.
On May 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Oceanside Realty: Fees accrued but unbilled at May 31 are $13,680. The supplies account balance on May 31 is $4,500. The supplies on hand at May 31 are $1,290. Wages accrued but not paid at May 31 are $1,720. The unearned rent account balance at May 31 is $13,410, representing the receipt of an advance payment on May 1 of three months' rent from tenants. Depreciation of office equipment is $2,280. Required: 1. Journalize the adjusting entries required at May 31. If an amount box does not require an entry, leave it blank.
Answer and Explanation:
The adjusting entries are shown below:
1. Accounts Receivable $13,680
To Fees Earned $13,680
(Being Accrued fees earned is recorded)
2. Supplies Expense $3,210 ($4500 - $1290)
To Supplies $3,210
(Being Supplies used is recorded)
3. Wages Expense $1,720
To Wages Payable ($1,720
(Being Accrued wages is recorded)
4. Unearned Rent $4,470 ($13,410 ÷ 3 month)
To Rent Revenue $4,470
(Being rent earned is recorded)
5. Depreciation Expense $2,280
To Accumulated Depreciation- Equipment $2,280
(Being Depreciation expense is recorded)
Which of the following is an example of an instance of public health education that created positive externalities?
teaching pregnant women hygienic practices in the early 1900s
people learning the importance of washing their hands
public campaigns against smoking in the late 1900s
all of the above
Answer:
D.) All of the above
Explantin
Teaching preg women abt hygienic practicers helped prevent infection because preg women are more prone to infections since they sweat more and stuff... (due to hormone)
People learning the importance of wash their hands is important because it helps prevent the spread of dieases. For example the infamous coronavirus
Public campaign against smoking was important in the 1990s because people back then didn't know smoking could cause. It caused cancer stroke lung dieases etc
Suppose you are planning to invest your saving in a fixed income fund. you feel you can mange to deposit 700 at the end of the first year, 500 at the end of the second year ,300 at the end of the third year, and 600 at the end of the fourth year. If the fund earns 6 percent interest each year. The terminal value of this uneven cash flow stream at the end of Year 4 is _____.
Answer:
$2,314
Explanation:
Calculation for what The terminal value of this uneven cash flow stream at the end of Year 4 is
First step is to calculate the terminal Value at the end of the first year
Terminal Value at the end of the first year=$700(1+0.06)^3
Terminal Value at the end of the first year=$833.7
Second step is to calculate the terminal Value at the end of the second year
Terminal Value at the end of the second year=$500(1+0.06)^2
Terminal Value at the end of the second year=$561.8
Third step is to calculate the terminal Value at the end of the third year
Terminal Value at the end of the third year=$300(1+0.06)^1
Terminal Value at the end of the third year=$318
Now let calculate the terminal value of this uneven cash flow stream at the end of Year 4
Terminal Value at the end of year 4=$833.7+$561.8+$318+$600
Terminal Value at the end of year 4=$2,313.5
Terminal Value at the end of year 4=$2,314 (Approximately)
Therefore The terminal value of this uneven cash flow stream at the end of Year 4 is $2,314
Assume that Toy Craft makes ragdolls. Each ragdoll requires 15 square feet of fabric. If the number of dolls to be produced during the quarter is 20,100, the desired ending inventory of fabric is 12,500 square feet, the beginning inventory of fabric is 23,900 square feet, and the cost of the fabric is $12 per square foot, what is the total cost of fabric purchases
Answer:
Total cost - Purchases = $3,481,200
Explanation:
We first need to find out the requirement for fabric to produce 20100 ragdolls and adjust it for the already available inventory of fabric (beginning inventory) and the desired ending inventory.
The production of 20100 ragdolls will require fabric of,
Fabric required = 20100 * 15 => 301500 square feet
The purchase of fabric in square feet will be,
Production = Beginning Inventory + Purchases - Ending Inventory
301500 = 23900 + Purchases - 12500
301500 + 12500 - 23900 = Purchases
Purchases = 290100 square feet
The total cost of fabric purchases will be,
Total cost - Purchases = 290100 * 12
Total cost - Purchases = $3,481,200
Gazelle Corporation, a merchandiser, recently completed its calendar-year 2015 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheets and income statement follow. GAZELLE CORPORATION Comparative Balance Sheets December 31, 2015 and 2014 2015 2014AssetsCash $123,450 $61,550Accounts receivable 77,100 80,750Inventory 240,600 250,700Prepaid expenses 15,100 17,000Total current assets 456,250 410,000Equipment 262,250 200,000Accum. depreciation—Equipment (110,750) (95,000)Total assets $607,750 $515,000Liabilities and EquityAccounts payable $17,750 $102,000Short-term notes payable 15,000 10,000Total current liabilities 32,750 112,000Long-term notes payable100,000 77,500Total liabilities 132,750 189,500EquityCommon stock, $5 par 215,000 200,000Paid-in capital in excessof par, common stock 30,000 0Retained earnings 230,000 125,500Total liabilities and equity$607,750 $515,000 GAZELLE CORPORATION Income Statement For Year Ended December 31, 2015Sales $1,185,000Cost of goods sold 595,000Gross profit 590,000Operating expensesDepreciation expense $38,600Other expenses 362,850Total operating expenses 401,450 188,550Other gains (losses)Loss on sale of equipment (2,100)Income before taxes 86,450Income taxes expense 28,350Net income $158,100Additional Information on Year 2015 TransactionsA. The loss on the cash sale of equipment was $2,100 (details in b).B. Sold equipment costing $51,000, with accumulated depreciation of $22,850, for $26,050 cash.C. Purchased equipment costing $113,250 by paying $43,250 cash and signing a long-term note payable for the balance.D. Borrowed $5,000 cash by signing a short-term note payable.E. Paid $47,500 cash to reduce the long-term notes payable.F. Issued 3,000 shares of common stock for $15 cash per share. G. Declared and paid cash dividends of $53,600.Required1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. Disclose any noncash investing and financing activities in a note.2. Analyze and discuss the statement of cash flows prepared in part 1, giving special attention to the wisdom of the cash dividend payment.
Answer:
Gazelle Corporation
1. Statement of Cash Flows
Operating Activities:
Net income $158,100
Non-cash expenses:
Loss on sale of equipment 2,100
Depreciation expense 38,600
Working capital changes:
Accounts receivable $3,650
Inventory 10,100
Prepaid expenses 1,900
Accounts payable -84,250
Short-term notes payable 5,000
Net cash flow from
operating activities $135,200
Investing activities:
Purchase of equipment -62,250
Net cash flow from investing ($62,250)
Financing activities:
Cash from Common Stock 45,000
Long-term notes payable 22,500
Dividends -53,600
Net cash from financing $13,900
Net cash flows $86,850
2. A closer look shows that the company should not have paid the dividends when it also went back to the shareholders for more financing, thereby diluting their shareholding.
Explanation:
a) Data and Analysis:
GAZELLE CORPORATION
Comparative Balance Sheets
December 31, 2015 and 2014
2015 2014 Cash Flows
Assets
Cash $123,450 $61,550
Accounts receivable 77,100 80,750 $3,650
Inventory 240,600 250,700 10,100
Prepaid expenses 15,100 17,000 1,900
Total current assets 456,250 410,000
Equipment 262,250 200,000 -62,250
Accum. depreciation—Equipment (110,750) (95,000)
Total assets $607,750 $515,000
Liabilities and Equity
Accounts payable $17,750 $102,000 -$84,250
Short-term notes payable 15,000 10,000 5,000
Total current liabilities 32,750 112,000
Long-term notes payable 100,000 77,500 22,500
Total liabilities 132,750 189,500
Equity
Common stock, $5 par 215,000 200,000 15,000
Paid-in capital in excess of par,
common stock 30,000 0 30,000
Retained earnings 230,000 125,500
Total liabilities and equity $607,750 $515,000
GAZELLE CORPORATION
Income Statement
For Year Ended December 31, 2015
Sales $1,185,000
Cost of goods sold 595,000
Gross profit 590,000
Operating expenses
Depreciation expense $38,600
Other expenses 362,850
Total operating expenses 401,450
Operating income 188,550
Other gains (losses)Loss on sale of equipment (2,100)
Income before taxes 186,450
Income taxes expense 28,350
Net income $158,100
a and b) Cash of sale of equipment $43,250 Loss on Cash Sale of Equipment $2,100
c) Equipment $113,250 Cash $43,250 Long-term note payable $70,000
d) Cash $5,000 Short-term note payable $5,000
e) Long-term note payable $47,500 Cash $47,500
f) Cash $45,000 Common Stock $45,000
g) Dividends $53,600 Cash $53,600
The labor force (sum of employed and unemployed workers) is fixed at 120 million. Each month, 2% of the workers who are employed at the beginning of the month lose their job, and 10% of the workers who are unemployed at the beginning of the month find a job. Assume that in January the number of workers without a job (unemployed) are 10 million. How many workers will be unemployed in March, that is, two months later
Answer:
Total number of unemployed (March)= 12,256,000
Explanation:
Giving the following information:
Total labor force= 120 million
Unemployed people (January)= 10 million
Each month, 2% of the workers who are employed at the beginning of the month lose their job, and 10% of the workers who are unemployed at the beginning of the month find a job.
First, we will calculate the unemployed and employed people for February:
New Unemployed= 110,000,000*0.02= 2,200,000
New employed= 10,000,000*0.1= 1,000,000
Total number of unemployed= 10,000,000 + 2,200,000 - 1,000,000= 11,200,000
Total number of employed= 110,000,000 + 1,000,000 - 2,200,000= 108,800,000
Now, for March:
New Unemployed= 108,800,000*0.02= 2,176,000
New employed= 11,200,000*0.1= 1,120,000
Total number of unemployed= 11,200,000 + 2,176,000 - 1,120,000= 12,256,000
Total number of employed= 108,800,000 + 1,120,000 - 2,176,000= 107,744,000
How can marketers take advantage of laughable disclaimers in their advertising?
Answer:
a
Explanation:
Firms in monopolistic competition would: Select one: a. persistently realize economic profits in both the short and long run b. may realize economic profits in the long run and normal profits in the short run c. tend to incur persistent losses in both the short and long run d. tend to realize economic profits in the short run and normal profits in the long run e. none of the above
Answer:
d. tend to realize economic profits in the short run and normal profits in the long run
Explanation:
Monopolistic competition can be defined as the market structure which comprises of elements of competitive markets (having many competitors) and monopoly.
Firms in monopolistic competition would tend to realize economic profits in the short run and normal profits in the long run
Jordan is considering three choices of spending the new year's eve. Option A is to dine outside at a luxury restaurant; option B is indoor skydiving, and option C is to play video games at a close-by club. If all three options cost the same, explicitly, what can be the economic reason for Jordan choosing option B
Answer: b. Jordan values option B more than options A and C.
Explanation:
All options cost the same explicitly which means that Jordan's choice was made based on implicit/ opportunity cost factors.
These undisclosed factors led to Jordan valuing option B more than the other options which is why it was picked even thought they all cost the same. Had any other option being more valuable than B, it would have been picked but since B was picked, B was the most valuable.
Kieso Company borrowed $740,000 for three months. The annual interest rate on the loan was 9%. Kieso's fiscal year ends on December 31. Kieso borrowed the $740,000 one month prior to the start of its current fiscal year and paid back the $740,000 plus interest two months into its current fiscal year. How much interest expense, if any, would Kieso report at the end of its last fiscal year and at the end of its current fiscal year
Answer:
Last Fiscal Year:
Interest Expense = $5550
Current Fiscal Year:
Interest Expense = $11100
Explanation:
According to the accrual basis of accounting, the expenses and revenues relating to a certain period should be recorded in that particular period whether of not they have been received. The fiscal year of Kieso ends on 31 December and as the loan was taken one month prior to the start of the current fiscal year, it was taken at the start of December of last fiscal year.
This means that the interest expense on loan relating to last December will be charged to the last fiscal year and the interest expense relating to January and February will be charged to the current fiscal year. The interest expense amount will be calculated as follows,
Last Fiscal Year = 740000 * 9% * 1/12 => $5550
Current Fiscal Year = 740000 * 9% * 2/12 => $11100
Lakeisha works as an administrative assistant in the finance department of a commercial construction company. She enjoys writing and public speaking, so she thinks she might enjoy working as a communications manager in the marketing communications department. What is the best choice of interviewee for Lakeisha's career research interview?
Answer:
A manager in the marketing communications department
Explanation:
The marketing communications department manager is the best choice of interviewee for Lakeisha's interview, as this professional can provide you with information relevant to your job duties so that Lakeisha can better assess your career research.
As she is a person who has communication skills in public, being a marketing communications manager can be a good option for Lakeisha, since this position has as main duties to develop marketing communication strategies in order to promote the company and its employees. products and services in the market, generate value to the target audience through marketing campaigns and position the company in a competitive way in the market.
what is international employment
Answer:
International Employee means any regular full-time or regular part-time employee of an Employer who is not on a United States payroll and is working regularly in a location outside of the United States.
Explanation:
What are stocks? Sorry it’s so simple but I was hoping I could get a good answer.
Here is a forecast of sales by National Bromide for the first 4 months of 2019 (figures in thousands of dollars): Month: 1 2 3 4 Cash sales 16 25 19 15 Sales on credit 105 125 95 75 On average, 60% of credit sales are paid for in the current month, 20% in the next month, and the remainder in the month after that. What are the expected cash collections in months 3 and 4
Answer:
National Bromide
The expected cash collections in months 3 and 4 are:
Month 3 = $122 ,000
Month 4 = $104,000
Explanation:
a) Data and Calculations:
(figures in thousands of dollars):
Months 1 2 3 4
Cash sales 16 25 19 15
Sales on credit 105 125 95 75
Collections of sales on credit:
60% current month 63 75 57 45
20% next month 21 25 19
20% two months 21 25
Cash sales 16 25 19 15
Total collections 79 121 122 104
b) The credit sales are not collected in full until after two months or 60 days. After classifying the cash collections on percentage basis, the cash sales for each month are added to ensure that the correct cash collections for the month are obtained.
During June, Lionel Magazine sold for cash an advertising space for $1200 total to be run in the July through December issues. On that date, the Lionel Magazine Company properly recognized Unearned Revenue. The adjusting entry to record on July 31 for the first month of advertising space includes:
Answer:
Lionel Magazine
The Adjusting Journal Entry to record on July 31 for the first month of the advertising space sold includes a:
Debit to the Unearned Revenue account with $200
and
Credit to Earned Advertising Revenue account with $200
This will reduce the Unearned Revenue account by $200 being the amount for July (one month) and at the same time, increase the Earned Advertising Revenue account by $200.
Explanation:
a) Data and Analysis:
Unearned Revenue $200 Earned Revenue $200 ($1,200/6)
Answer:
Lionel is a resident at a personal care home. A direct care staff person threatened to steal Lionel’s collection of car magazines if he did not socialize with other residents during recreational activities. The threat of stealing Lionel’s magazines is an example of ____________.
Explanation:
In 2020, the CEO of Crimson, Inc., entertains 9 clients at a skybox in Memorial Stadium for a single athletic event during the year. Substantive business discussions occurred at various times during the event. The box cost $11,300 per event and seats 11 people. (The cost of a regular, nonluxury box seat at Memorial ranges from $90 to $180.) Refreshments served during the event cost $820 (and were separately itemized on the bill Crimson received).
Required:
How much of these costs may Crimson deduct?
Answer:
The amount of these costs Crimson may deduct is $1,400.
Explanation:
The amount of these costs Crimson may deduct can be calculated as follows:
Costs of refreshments served during the event = $820
Higher of the cost of nonluxury box seat at Memorial = $180
Number of people the box can seat = 11
Costs of the seat = Higher of the cost of nonluxury box seat at Memorial * Number of people the box can seat = $180 * 11 = $1,980
Total cost of entertainment = Costs of refreshments served during the event + Costs of the seat = $820 + $1,980 = $2,800
50% of the total cost of entertainment = $2,800 * 50% = $1,400
Allowable deduction = Total cost of entertainment - Elimination of 50% of the total cost of entertainment = $2,800 - $1,400 = $1,400
Therefore, the amount of these costs Crimson may deduct is $1,400.
what is the difference between need and want?
answer:
wants are desires for goods and services we would like to have but do not need. needs are a special kind of want, and refer to things we must have to survive, such as food, water, and shelterexplanation:
credits: online researchLanson Corporation Co.'s trial balance included the following account balances at December 31, 2021: Accounts payable $26,800 Bonds payable, due 2030 24,900 Salaries payable 16,900 Notes payable, due 2022 22,000 Notes payable, due 2026 40,800 What amount should be included in the current liabilities section of Lanson's December 31, 2021, balance sheet?
Answer:
$65,700
Explanation:
The computation of the amount that included in the current liabilities section is shown below:
= Account payable + salaries payable + note payable due 2022
= $26,800 + $16,900 + $22,000
= $65,700
Stephanle is planning to buy a house and can choose between a traditional mortgage at 5% Interest or an adjustable-rate mortgage (ARM) at
4.5% Interest. What factor would make the ARM less attractive to Stephanie?
Select the best answer from the choices provided.
ОА. Interest rates are dropping and are expected to continue to fall.
ОВ.
Home values are rising and are expected to continue to rise.
OC. Stephanie expects to receive a promotion within a year.
OD. Stephanie could not afford the payment if the interest rate rose to 5.5%.
Answer:
D.
Explanation:
If Stephanie knows that the interest rates are dropping and are expected to continue to do so, she may feel that the ARM is her best option. However, interest rates that go down will always come back up, and most likely surpass the previous high rate. If said rate increases to an amount out of her budget, the adjustable-rate mortgage would be the less attractive method.