Answer and Explanation:
The Preparation of the cash budget for January and February is prepared below:-
Bastille Corporation
Cash budget
for the month of January and February
Particulars January February
Beginning cash balance $46,000 $43,000
Add: Receipts
Customer collection $326,000 $378,000
Notes receivable collection $15,000 $0
Sale of marketable securities 0 $4,000
Total receipts $341,000 $382,000
Total cash available $387,000 $425,000
Less:
Cash payments during the
year
Purchases $110,000 $135,000
Salaries $84,000 $81,000
Administrative expenses $71,000 $74,000
Selling expenses $79,000 $88,000
Dividends 0 $10,000
Disbursement total $344,000 $388,000
Excess of cash
available $43,000 $37,000
Financing
Borrowings 0 $3,000
Repayments 0
Ending cash balance $43,000 $40,000
Note: February beginning balance is the balance of ending cash balance.
Companies that show profits on the income statement will always show positive cash flows from operating activities.
a. True
b. False
Answer:
B. False.
Explanation:
Firstly, explaining a cash flow statement will be explained or tells us how much cash from the business is entering and leaving your business. This is been explained better with the aid of a balance sheets and also income statements; these are practically three most important financial statements that helps effectively in accounts of business management in a small business accounting and making sure you have enough cash to keep operating.
Using a template or probably an excel spreadsheet, the income statement and cash flow statements are been well understood and at this it is totally false to say that companies that show profits on the income statement will always show positive cash flows from operating activities.
The implication of the expectations theory that expected returns for a holding period must be the same for bonds of different maturities depends on the assumption that________.
1. Yiels curves usually slope downward
2. Yiels curves usually slope downward
3. Instruments with different maturities are perfect subtitute
4. Savers are usually risk averse
Answer:
i think the answer is intruments with different matuirties are perfect subtitute. i'm not sure but i think this is the answer.
Explanation:
Reports are the primary means of communication in an organization. Illustrate the comment.
Answer: hi
Explanation: bye
A good manager can be flexible when it comes to sticking to the original plan; to get good results, the intended strategy has to become the realized strategy.
a. True
b. False
Answer:
False
Explanation:
Hope this helps my loves :)
The flying of new employees to a three-day training session at Uberversity in San Francisco to learn about the company is part of the organization's:_______
a) labor relations
b) selection process
c) performance management
d) benefits
e) onboarding
Answer:
e) onboarding
Explanation:
Onboarding is the process by which new employees are introduced to the companie's culture including operational procedures and training on their job roles.
Onboarding is an important step in making the employee more efficient on the job. It is also called organisational socialising.
In the given scenario where new employees fly to a three-day training session at Uberversity in San Francisco to learn about the company, is an onboarding process.
1. The interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the____________ .
2. The Fed can_____________ the money supply by lowering this rate.
Answer:
1. Discount rate.
2. Increase.
Explanation:
A Federal Reserve Bank is one of the twelve regional banks of the Federal Reserve System in the United States of America. The Federal Reserve Banks are saddled with the responsibility of implementing the monetary policy designed and provided by the Federal Open Market Committee (FOMC).
Federal Reserve System also known as the Fed, was created under the Federal Reserve Act which was passed by US Congress in 1913. The Fed began its operations in the year 1914. It's a financial institution which was founded by President Woodrow Wilson and was primarily aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.
Furthermore, just like all central banks, the Fed is a government financial institution which is saddled with these responsibilities;
1. Controlling the issuance of currency in United States of America: the Fed promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
2. Providing banking services to all the commercial banks in the country: the Fed is the "lender of last resort.
3. Regulating banking activities: it has the power to supervise and regulate banks.
The Federal Reserve Board is the governing body which essentially manages the Federal Reserve System and performs an oversight function on domestic monetary policies.
Additionally, the interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the discount rate. Also, the Fed can increase the money supply by lowering this rate (discount rate) and thus, empowering the member banks to lend more money.
Mitch likes his coworkers, thinks his pay is fair, and appreciates the interesting assignments his boss gives him, so Mitch is likely to have high A. emotional stability, B. self-management, C. self-awareness, D. job satisfaction
Answer:
D. job satisfaction
Explanation:
Job satisfaction measures how contented a staff is with his job. It measures how the employee feels about his job.
Mitch likes his job, his co workers and his salary. Mitch is likely to have a high job satisfaction
I hope my answer helps you
There are zero coupon bonds outstanding that have a YTM of 6.27 percent and mature in 14 years. The bonds have a par value of $10,000. If we assume semiannual compounding, what is the price of the bonds?
Answer:
Price of the Bond is $4,268.26
Explanation:
The price of the bonds can be obtained using a Financial calculator by entering the data as follows :
r = 6.27%
Pmt = $0
n = 14
Fv = $10,000
Pv = ? Price of the Bond
Therefore, Pv, Price of the Bond is $4,268.2561.
Thus Price of the Bond is $4,268.26 ( 2 decimal places).
Grand River Corporation reported taxable income of $550,000 in 20X3 and paid federal income taxes of $192,500. Not included in the computation was a disallowed meals and entertainment expense of $3,000, tax-exempt income of $2,000, and deferred gain on a current-year transaction treated as an installment sale of $30,000. The corporation's current earnings and profits for 20X3 would be:_________
Answer:
$336,500
Explanation:
Grand River corporation has a taxable income of $500,000 in 20X3
They paid a federal income tax of $192,500
The amount of expense that was not added to the report is $3,000
The tax exempt income is $2,000
The deferred gain is $30,000
Therefore, the current earinings and profits of the corporation for the year 20X3 can be calculated as follows
= Taxable income-federal income taxes-expenses-tax exempt income+deferred gain
=$500,000-$192,500-$3,000+$2,000+$30,000
= $336,500
Hence the current earnings and profits for the corporation is $336,500
On August 21, Alix Company receives a $2,000, 60-day, 6% note from a customer as payment on her account. How much interest will be due on October 20 - the due date?
a. $10
b. $20
c. $140
d. $120
Answer:
b. $20
Explanation:
Calculation of how much interest will be due on October 20 - the due date
Using this formula
Interest due = Amount received ×Numbers of days ×Note percentage
Let plug in the formula
Interest due =$2,000 x (60/360) x 0.06
Interest due=$2,000×0.17×0.06
Interest due =$20
Therefore $20 interest is the amount of interest that will be due on October 20the due date.
Rodriguez Company pays $310,000 for real estate plus $16,430 in closing costs. The real estate consists of land appraised at $215,000; land improvements appraised at $86,000; and a building appraised at $129,000.Required:1. Allocate the total cost among the three purchased assets.2. Prepare the journal entry to record the purchase.
Answer:
Required 1.
Land = $163,215
Land improvements = $65,286
Buildings = $97,929
Required 2.
Land $163,215 (debit)
Land improvements $65,286 (credit)
Buildings $97,929 (credit)
Cash $310,000 (credit)
Explanation:
Allocation of the purchase cost must be made on the bases appraisal value.
Total Appraisal Value = $215,000 + $86,000 + $129,000
= $430,000
Land = $215,000 / $430,000 × $326,430
= $163,215
Land improvements = $86,000 / $430,000 × $326,430
= $65,286
Buildings = $129,000 / $430,000 × $326,430
= $97,929
Explain the provisions of section 302 of the Sarbanes-Oxley Act including obligations of officers; nature and scope of assertions; accounting requirements; and legal liability of officers.
Answer:
"Section 302 of the Sarbanes-Oxley Act states that the CEO and CFO are directly responsible for the accuracy, documentation and submission of all financial reports as well as the internal control structure to the SEC," according to sarbanes-oxley-101.com. So, Section 302 is essentially about the responsibilities of principal officers of the company, especially the principal executive and financial officers.
1. Obligations of officers: To certify each annual and quarterly report. To ensure that the issued financial statements and other financial information are not misleading. To ensure that the information is fairly presented.
2. Nature and Scope of Assertions:
a) That the information presented are fairly presented with no misleading statements
b) That the internal controls are in place and operating effectively
c) To asset that they are aware of all material information relating to the issuing company
d) That they have evaluated internal controls, their effectiveness, and changes in controls.
3. Accounting requirements:
a) Ensure effective internal accounting controls
b) Disclose all material financial information to auditors and audit committee
c) File periodic reports to SEC in compliance with section 13(a) and 15(d) of the SEC Act of 1934.
4. Legal liability of officers: This is covered in Section 906 of the Sarbanes-Oxley Act. The section prescribes that officers are liable for "penalties upward of $5 million in fines and 20 years in prison" for any violation of the Act.
Explanation:
The Sarbanes-Oxley Act of 2002 is a federal law which was made in response to the accounting scandals following the collapse of Worldcom and Enron. The purpose of the Act was to safeguard shareholders, employees, and the public from accounting errors and fraudulent financial practices by listed companies. According to sarbanes-oxley-101.com, the Act requires "all financial reports to include an Internal Controls Report," to prove the accuracy and adequacy of controls for ensuring that financial information is not misleading.
Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $2,400 million in the coming year. In addition, the firm is expected to have net capital expenditures of $360 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year?
Answer:
FCF = $1,995 million
Explanation:
DATA
EBIT(1-T) = $2,400 million
Net Capital Expenditure = $360 million
Net operating working capital (NOWC) = $45 million
Free cash flow (FCF) expected to generate over next year can be calculated as
FCF = EBIT(1-T) - Capital Expenditure - Net operating working capital (NOWC)
FCF = $2,400 million - $360 million - $45million
FCF = $1,995 million
42) Joe just inherited the family business, and having no desire to run the family business, he has decided to sell it to an entrepreneur. In exchange for the family business, Joe has been offered an immediate payment of $100,000. Joe will also receive payments of $50,000 in one year, $50,000 in two years, and $75,000 in three years. The current market rate of interest for Joe is 6%. In terms of present value (PV), how much will Joe receive for selling the family business? A) $$245,641 B) $254,641 C) $641,254 D) $254,461
Answer:
Total PV= $254,641.08
Option B.
Explanation:
Giving the following information:
Cash flows:
Cf0= $100,000
Cf1= 50,000
Cf2= 50,000
Cf3= 75,000
Interest rate= 6%
To calculate the present value, we need to use the following formula on each cash flow:
PV= FV/(1+i)^n
Cf0= 100,000
Cf1= 50,000/1.06= 47,169.81
Cf2= 50,000/1.06^2= 44,499.82
Cf3= 75,000/1.06^3= 62,971.45
Total PV= $254,641.08
Which of the following costs would be applied to manufactured inventory under variable costing? Select one: A. Cost of raw materials B. Salary of factory manager C. Rental payments on administrative offices D. Commissions to sales persons E. Rental payments on factory
Gerard, a job applicant, was asked to appear for an interview by an organization. Gerard spent the first 15 minutes of the job interview relating details about his education and work experience to the interviewer. This is a _____ interview.
Answer:
The answer is biographical interview
Explanation:
A biographical interview takes place during an interview where the interviewee tells his or her life story(ranging from family background to work experience, education etc). It requires describing and explaining one's own life to the interviewer.
Examples of Biographical interview questions can be:
Tell me about yourself?
What are you strengths? Etc.
identify this financial statement: which financial statement would best display a companys plant propery and equipment use in their factory everyday to help generate a slaes revenue
Answer: C) Balance Sheet
Explanation:
The Plant, Property and Equipment (PPE) that a company owns are reported in the Balance Sheet under Fixed Assets.
These Assets are considered investments because of their long term use and they help a company in generating it's sales Revenue.
They are also depreciated as well to account for the period they are in action and are usually recorded in the Balance Sheet at their Net amounts (depreciated amounts).
Prior to liquidating their partnership, Pepper and Reynell had capital accounts of $13,000 and $49,000, respectively. The partnership assets were sold for $24,000. The partnership had no liabilities. Pepper and Reynell share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. $ b. Determine the amount distributed to Reynell, assuming Pepper is unable to satisfy the deficiency. $
Answer:
Explanation:
Based on the information that has been given in the question, the following answer can be provided
a. Determine the amount of Pepper's deficiency.
First, we need to calculate the loss that was recognized. This will be:
= ($13,000 + $49,000) - $24,000
= $62,000 - $24,000
= $38,000
Pepper's share of the loss will then be:
= $38,000/2
= $19,000
Pepper's deficiency will now be his contribution minus the loss incurred. This will be:
= $19,000 - $13,000
= $6,000
Deficiency of $6000
b. Determine the amount distributed to Reynell, assuming Pepper is unable to satisfy the deficiency.
This will be:
= $49,000 - $19000 - $6,000
= $49,000 - $25,000
= $24,000
Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr. 1 Beginning inventory 470 $ 2.37 Apr. 20 Purchase 410 2.72 Dunbar sold 580 units of inventory during the month. Ending inventory assuming FIFO would be:
Answer:
Ending inventory= $816
Explanation:
Giving the following information:
Apr. 1 Beginning inventory 470 $2.37
Apr. 20 Purchase 410 $2.72
Dunbar sold 580 units of inventory during the month.
To calculate the ending inventory under the FIFO (first-in, first-out) method, we need to use the cost of the last units incorporated into inventory.
Units in ending inventory= 880 - 580= 300
Ending inventory= 300*2.72= $816
Developing a List of Activities for Baggage Handling at an Airport
As part of a continuous improvement program, you have been asked to determine the activities involved in the baggage-handling process of a major airline at one of the airline’s hubs. Prior to conducting observations and interviews, you decide that a list of possible activities would help you to better observe key activities and ask meaningful questions.
Required
For incoming aircraft only, develop a sequential list of baggage-handling activities. Your list should contain between 8 and 10 activities.
Listed below are 8 baggage-handling activities in random order. Put the activities in sequential order by selecting the appropriate number using the drop-down answer options under the "Step" column.
(Step 6 is completed as an example)
Load aircraft
Move baggage to baggage sorting area
Unload aircraft
6 Accumulate baggage for each outgoing flight
Move baggage to outgoing aircraft
Move baggage for which hub is final destination to baggage claim area
Open cargo hatch
Sort baggage by outgoing flight numbers and/or destination
Answer:
1. Open cargo hatch
When the plane arrives, it will need to be unloaded so the first thing to do is open the cargo hatch to have access to cargo area.2. Unload aircraft
After gaining access to the cargo area, unload the aircraft.3. Move baggage to baggage sorting area
The baggage should then be moved to a place where it can be sorted.4. Move baggage for which hub is final destination to baggage claim area
If this is the final destination for the baggage then it should be moved to the baggage claim area5. Sort baggage by outgoing flight numbers and/or destination
When it is time for the outgoing flights, sort them according to which flights they will be going on.6. Accumulate baggage for each outgoing flight
After sorting them, accumulate them and prepare them to be transported to the plane they are to go to.7. Move baggage to outgoing aircraft
After accumulating them, transport them to the plane that they are to go with.8. Load aircraft
After transporting them then load the aircraft.What will be your rate of return if the price of Telecom stock goes up by 10% during the next year? (Ignore the expected dividend.)
Answer:
The answer is 12%
Explanation:
Initial investment:
$5,000 in equity + $5,000 in debt
=$10,000
Number of shares bought with the initial investment is:
Initial investment/Stock price
= $10,000/$50 = 200 shares.
The shares increase in value by 10%: $10,000 x 0.10 = $1,000.
Interest on debt = $5,000 x 0.08 = $400.
The rate of return will be:
($1,000 - $400) ÷ $5,000
0.12
Expressed as a percentage:
12%
In Concord, Inc., the Assembly Department started 61000 units and completed 70700 units. If beginning work in process was 30800 units, how many units are in ending work in process?
Answer:
Closing inventory = 21,100 units
Explanation:
The closing working in progress represent the units of work at the end of the period for which are yet to be completed in the period.
It is the sum of the opening inventory and the units introduced less the completed units. This given below in mathematical terms
Closing inventory = Opening inventory + Newly added - completed units
= 30,800 + 61,000 - 70,700= 21,100
Closing inventory = 21,100 units
In order to find the future worth, F, from a present amount, P, 5 years from now at an interest rate of 6 % per year, compounded quarterly, what interest rate must be used in the F/P factor, (F/P,i%,n), when n is 20 quarters
Answer:
Interest rate = 1.5%
Explanation:
Given:
Future value = F
Present value = P
Number of Year (n) = 5 year × 4 quarters = 20
Interest rate = 6 % per year = 6 / 4 = 1.5% = 0.015
Computation:
Future value = Present value[tex](1+i)^n[/tex]
F/P = (1+0.015)²⁰
F/P = 1.34685501
When n = 20 quarters
F/P = (1+i)²⁰
1.34685501 = (1+i)²⁰
i = 0.015
Interest rate = 1.5%
Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company.
What amount of child and dependent care credit can Julie claim in each of the following alternative scenarios?
a. Julie paid $2,000 to the day care center and her AGI is $50,000 (all salary).
b. Julie paid $5,000 to the day care center and her AGI is $50,000 (all salary).
c. Julie paid $4,000 to the day care center and her AGI is $25,000 (all salary).
d. Julie paid $2,000 to the day care center and her AGI is $14,000 (all salary).
e.
Julie paid $4,000 to the day care center and her AGI is $14,000 ($2,000 salary and $12,000 unearned income).
Answer and Explanation:
The computation of In each of the following alternative situations, Julie will demand the amount of child and dependent care credit is shown below:-
According to the 1st situation
Particulars Amount
a. Expenditure of dependent care $2,000
b. Qualifying expenses for one
dependent on limit $3,000
c. Earned income of Julie $50,000
d. Expenses eligible for credit $2,000 (which is least of a,b, and c)
e. Percentage rate on credit 20% (AGI over $43,000)
f. Child and dependent care credit $400 (2,000 × 20%)
According to the 2nd situation
Particulars Amount
a. Expenditure of dependent care $5,000
b. Qualifying expenses for one
dependent on limit $3,000
c. Earned income of Julie $50,000
d. Expenses eligible for credit $3,000 (which is least of a,b, and c)
e. Percentage rate on credit 20% (AGI over $43,000)
f. Child and dependent care credit $400 (3,000 × 20%)
According to the 3rd situation
Particulars Amount
a. Expenditure of dependent care $4,000
b. Qualifying expenses for one
dependent on limit $3,000
c. Earned income of Julie $25,000
d. Expenses eligible for credit $3,000 (which is least of a,b, and c)
e. Percentage rate on credit 30% (AGI over $25,000)
f. Child and dependent care credit $900 (3,000 × 30%)
According to the 4th situation
Particulars Amount
a. Expenditure of dependent care $2,000
b. Qualifying expenses for one
dependent on limit $3,000
c. Earned income of Julie $14,000
d. Expenses eligible for credit $2,000 (which is least of a,b, and c)
e. Percentage rate on credit 35% (AGI over $15,000)
f. Child and dependent care credit $700 (2,000 × 35%)
According to the 5th situation
Particulars Amount
a. Expenditure of dependent care $4,000
b. Qualifying expenses for one
dependent on limit $3,000
c. Earned income of Julie $2,000
d. Expenses eligible for credit $2,000 (which is least of a,b, and c)
e. Percentage rate on credit 35% (AGI over $15,000)
f. Child and dependent care credit $700 (2,000 × 35%)
What action can a supervisor take to reinforce the desired change and create a work environment that nourishes successful people?
Answer:
Communicate the reasons for the change.
Explanation:
Remember, reinforcement involves not necessarily employing harsh measures, but communicating with a view to persuade into action.
Since a supervisor is often seen as a head among his colleagues, he thus can exert influence on other employees by explaining the reasons and benefits for such change, doing so would steer employees into accepting the organisational change.
If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30, in preparing the September 30 bank reconciliation, the company should:
Answer:
The answer is 'add the deposit to the end cash balance per bank statement'
Explanation:
The company made a deposit on the last day of September and this was not recorded by the bank i.e it will not be shown on the bank statement at September 30. The company had already recorded this deposit in the cash book at office. This means the bank statement is less this deposit amount.
To correct this anomaly, the deposit that was not recorded by the bank will be added to the end cash balance as per bank statement.
Suppose Stark Ltd. just issued a dividend of $2.33 per share on its common stock. The company paid dividends of $2.00, $2.08, $2.15, and $2.26 per share in the last four years. If the stock currently sells for $55, what is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends?What if you use the geometric average growth rate?
Answer:
arithmetic average growth rate = (4% + 3.37% + 5.12% + 3.1%) / 4 = 3.9%
we need to find the required rate or return (RRR) in the following formula:
stock price = expected dividend / (RRR - growth rate)
expected dividend = $2.33 x 1.039 = $2.42stock price = $55growth rate = 0.03955 = 2.42 / (RRR - 0.039)
RRR - 0.039 = 2.42 / 55 = 0.044
RRR = 0.083 = 8.3%
geometric average growth rate = [(1.04 x 1.0337 x 1.0512 x 1.031)¹/⁴] - 1 = 3.89%
again we need to find the required rate or return (RRR) in the following formula:
stock price = expected dividend / (RRR - growth rate)
expected dividend = $2.33 x 1.0389 = $2.42stock price = $55growth rate = 0.038955 = 2.42 / (RRR - 0.0389)
RRR - 0.0389 = 2.42 / 55 = 0.044
RRR = 0.0829 = 8.29%
Griffin's Goat Farm, Inc., has sales of $604,000, costs of $255,000, depreciation expense of $53,000, interest expense of $35,000, and a tax rate of 23 percent. What is the net income for this firm
Answer:
The answer is $200,970
Explanation:
Solution
Given that
Now
Sales =$604,000
Costs= $255,000
Depreciation=$53,000
Thus
EBIT (Earnings before taxes and interest)=$296,000
The interest Expense = $35,000
Taxable income =$200,970
Taxes($261,000 * 23% =$60,030
The net income = $200,970
Therefore the net income for the firm is $200,970
Answer:
$200,970
Explanation:
Hope this helps
In the United States banking policies and procedures are set by the:
-president
-senate
-House of representatives
-federal reserve
Answer:
Federal Reserve.
Explanation:
Federal Reserve is a large central bank in Washington, D.C. that was founded in 1913. It lends money to other, smaller banks.
The sales budget for Perrier Inc. is forecasted as follows:
Month Sales Revenue
May $130,000
June 150,000
July 200,000
August 130,000
To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales: 60 percent in the month of sale. 20 percent in the month following sale. 15 percent in the second month following sale.
5 percent uncollectible.
60 percent in the month of sale.
20 percent in the month following sale.
15 percent in the second month following sale.
The company gives a 2 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $22,000, of which $7,000 represents uncollected March sales and $15,000 represents uncollected April sales. Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-month summary of estimated cash collections.
Answer:
budgeted cash collections
May June July
sales revenue 130,000 150,000 200,000
cash sales (60% x 0.98) 76,440 88,200 117,600
accounts receivable (March) 5,250
accounts receivable (April) 7,500 5,625
accounts receivable (May) 26,000 19,500
accounts receivable (June) 30,000
total cash collections 219,190 269,825 367,100
I used net accounts receivables, that means I already discounted the 5% of collectibles.