Answer:
1. The capacity of the process
= 2.5 suits /day
2. The flow rate of the process = 2.5 suits/10 hours
= 0.25 suits per hour
3. The implied utilization of the Sewing stage = (0.5 * 150 minutes * 4) 300 minutes = 5/10
= 50%
4. The utilization of the Measuring stage = (0.5 * 30 minutes * 4) 60 minutes = 1/10
= 10%
Explanation:
a) Data and Calculations:
Time taken for the measurement of a suit = 30 minutes
Time for preparation and cutting of materials = 60 minutes (1 hour)
Time for sewing = 150 minutes (2.5 hours or 2 hours, 30 minutes)
Total time taken to make a suit = 4 hours
Available production time per day = 600 minutes (6 hours)
Therefore, 6/4 suits can be produced per day, this equals 2.5 suits.
The tangible assets of an organization include
A. Company reputation
B. Patents
C. Real estate
D. Technical knowledge
Answer:
a. company reputation
Explanation:
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Bi-Lo Traders is considering a project that will produce sales of $44,800 and have costs of $25,700. Taxes will be $4,500 and the depreciation expense will be $2,650. An initial cash outlay of $2,100 is required for net working capital. What is the project's operating cash flow?
Answer:
$10,700
Explanation:
Operating cash flow is computed as;
= Net income + non cash expenses - outlay in working capital
First, we'll determine the net income
Net income = Sales $44,800 - cost $27,500 depreciation expense $2,650 - Taxes $4,500
Net income = $10,150
Operating cash flow = $10,150 + $2,650 - $2,100 = $10,700
Assume that the British government eliminates all controls on imports by British companies. Other things being equal, the U.S. demand for pounds would ____, the supply of pounds for sale would ____, and the equilibrium value of the pound would ____. a. remain unchanged; increase; decrease b. remain unchanged; increase; increase c. decrease; increase; decrease d. increase; increase; increase
Answer:
increase
increase
decrease
Treasury Stock Facts Target Inc. arranged to purchase a large block of its common stock from a major shareholder. The total number of shares purchased is 10,000 and these shares are to be held as treasury shares. Target Inc. uses the cost method to account for treasury shares. This shareholder had a controlling interest before the transaction. After the transaction this shareholder no longer has a controlling interest. Given these facts, to induce the shareholder to sell the block of stock Target Inc. was forced to pay an amount in excess of the current market price of the stock. Target Inc. paid the shareholder $40 per share when the market price was $30 per share.Question How should Target Inc. account for the purchase of this treasury stock?a. Provide a brief written description of the proper accounting treatment, including how the extra $10 paid per share is recorded.b. Prepare a formal journal entry to record the treasury stock transaction.c. Identify the specific paragraph of the FASB Codification which addresses this issue.
Answer:
Target Inc.
a. Under the cost method, as adopted by Target Inc., the cost of acquiring the treasury stock is debited to the Treasury Stock account and credited to the Cash account. This means that there is no differentiation of the extra $10 just as there is no differentiation between the par-value and the cost of acquiring each share.
b. Journal Entry:
Debit Treasury Stock $40,000
Credit Cash $40,000
To record the repurchase of 10,000 shares at $40 each.
c. The FASB Codification which addresses Treasury Stock accounting is called Codification Topic 505-30. The cost of treasury stock is reported separately from the gain or loss.
Explanation:
a) Data and Calculations:
Total number of shares purchased = 10,000
Price paid for the purchase = $40
Market price of the share = $30
Extra cost paid = $10
b) Two methods are adopted for recording treasury stock. There is the par-value method. This method records the treasury stock at the par value multiplied by the number of treasury stock. The difference in the purchase cost and the par-value is then recorded in the Additional Paid-in Capital account. The other method is the cost method. Here, the cost of acquiring the treasury stock (not the par-value) is recorded in the Treasury Stock account, with a credit entry to the Cash account. Treasury Stock account is a contrary account to the stockholders' equity, and as a result, is a deduction from the amounts in the Stockholders' Equity in the balance sheet, in both cases.
Consider a firm with an EBIT of $11,400,000. The firm finances its assets with $51,800,000 debt (costing 7.4 percent) and 10,900,000 shares of stock selling at $8.00 per share. The firm is considering increasing its debt by $25,000,000, using the proceeds to buy back shares of stock. The firm is in the 30 percent tax bracket. The change in capital structure will have no effect on the operations of the firm. Thus, EBIT will remain at $11,400,000. Calculate the EPS before and after the change in capital structure and indicate changes in EPS. (Round your answers to 3 decimal places.)
Answer:
EPS Before the change in capital structure = $0.486 Per shares
EPS After the change in capital structure = $0.515 Per shares
Difference = $ 0.029
Explanation:
Calculation of EPS before the change in capital structure :
Particulars Amount
EBIT $ 11,400,000
Interest Cost $ 3,833,200 (51,800,000×7.4%)
Earning After Interest $ 7,566,800
Tax ( 30% ) $ 2,270,040
Net Profit after tax $ 5,296,760
Number of Shares outstanding $ 10,900,000
Earning Per Shares $0.486
Calculation of EPS after the change in capital structure :
Particulars Amount
EBIT $ 11,400,000
Interest Cost $ 5,683,200
( $ 76,800,000×7.4%)
Earning After Interest $ 5,716,800
Tax ( 30%) $ 1,715,040
Net Profit after tax $40,01,760
Number of Shares outstanding 77,75,000
Earning Per Shares $0.515
∴ we get
EPS Before the change in capital structure = $0.486 Per shares
EPS After the change in capital structure = $0.515 Per shares
Difference = $ 0.486 - 0.515 = $ 0.029
a. A ______ of accounts is a list of all accounts a company uses, not including account balances. b. The ______ is a record containing all accounts used by a company, including account balances. c. A(n) ______ describes transcations entering an accounting system, such as a purchase order. d. Increases and decreases in a specific asset, liability,
Answer:
a. A general ledger of accounts is a list of all accounts a company uses, not including account balances.
b. The Chart of accounts is a record containing all accounts used by a company, including account balances.
c. A source document describes transactions entering an accounting system, such as a purchase order.
d. An account contains a record of decreases and increases in a specific revenue, expense, asset, liability, or equity
Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June. During the same period, the Manufacturing Overhead applied to Work in Process was $92,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:
Answer:
C. credit to Manufacturing Overhead of $92,000
Explanation:
The journal entry for the application of Manufacturing to Work in Process amounting to $92,000 would be as follows:
Dr. ($) Cr. ($)
Work in Process 92,000
Manufacturing Overhead 92,000
The other options are incorrect either due to wrong particular used or due to incorrect amount such as in option (b) where the Debit to Work in Process is correct but the amount $90,000 is wrong. Hence, the option (c) Credit to Manufacturing Overhead of $92,000 is the correct answer.
Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $49,750. Koch originally purchased Machine 1 for $75,500, and Machine 1's adjusted basis was $40,250 at the time of the exchange. Machine 2's seller purchased it for $64,750 and Machine 2's adjusted basis was $55,250 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange
Answer:
machine 2 45,000
acc depreciation mchine 1 35,000
machine 1 75,000
The seller valuation are not relevant the important is the fair value. Which is 50,000.
If there was commercial substance we will recognize a gain for 5,000
(50,000 fair value - 45,000 book value)
However, we are not given with information of commercial substance, so we should not recognize any gain or loss in trade.
The machine 2 will enter the accounting for the same value as the previous machine net book.
Explanation:
Kingbird, Inc. reported net sales of $267,000, cost of goods sold of $160,200, operating expenses of $48,900, net income of $42,720, beginning total assets of $532,300, and ending total assets of $618,100. Calculate profit margin and gross profit rate. (Round answers to 1 decimal place, e.g. 10.2%.)
Answer and Explanation:
The computation is shown below:
Profit margin = Net income ÷ Net sales
= $42,720 ÷ $267,000
= 16%
Now the gross profit rate is
But before that the gross profit is
Gross profit = Net sales - Cost of goods sold
= $267,000 - $160,200
= $106,800
Now Gross profit rate is
= Gross profit ÷ Net sales
= $106,800 ÷ $267,000
= 40%
Which of the following BEST describes a conflict of interest? O A. Two companies competing for the business of the same customer B. Parties engaging in an activity that does not equally benefit all parties C. An employee engaging in an activity that may benefit that individual to the detrimen O D. People on different sides of an issue agreeing to disagree O E. A company engaging in practices that conflict with government regulations Click to select your answer.
The statement that best describes conflict of interest is - An employee engaging in an activity that may benefit that individual to the detriment of his employer or clients of the firm
Conflict of interest arises when the interest of an employee is not aligned with the interest of his/her employer or clients.
For example, an employer might decide to take a project even though it is not profitable because if the project is undertaken it would increase the prestige of the employee. This project would be benefit the employee but not the employer.
To learn more about conflict of interest, please check: https://brainly.com/question/14787764?referrer=searchResults
Doug works as the Heavy Haul Manager for Lone Star Transportation. He is currently working on a wind farm project and deciding which drivers of his team will work on the project and which field supervisors will work on communicating with GE who is building the wind farm. He is also assigning drivers certain sections of the wind turbines to ensure that the parts are delivered in the correct order for the project. Which of the following management functions is Doug undertaking?
A. Scrutinizing.
B. Planning.
C. Organizing.
D. Envisioning.
E. Controlling.
Answer:
C
Explanation:
19) Which of the following best describes horizontal analysis? A) calculating key ratios to evaluate performance B) comparing a company's financial statements with other companies C) comparing financial statement amounts from year to year for the same company D) expressing each financial statement amount as a percentage of a budgeted amount
Answer:
C) comparing financial statement amounts from year to year for the same company
Explanation:
Horizontal analysis refers to an analysis of the items in the financial statements that should be compared for a period of time. It basically used to see the situation of the trends how it goes whether it is increase or decrease. For using this, the two or more periods financial statements are required
Therefore according to the given options, the option c is correct
You have just been hired as the accountant for Fan-Tastic Sports Gear Inc., a wholesaler of sporting goods and apparel. The previous accountant left abruptly in late December, 20Y7, and an accounting intern has been drafting the journal entries since January. You are examining the accounting records before finalizing the journal entries for the first quarter of 20Y8. The following journal shows some of the accounts receivable transactions that you are reviewing.
JOURNAL
ACCOUNTING EQUATION
DATE DESCRIPTION POST. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1 Jan.
17 Sales 9,600.00
2 Bad Debt Expense 9,600.00
3 17 Bad Debt Expense 9,600.00
4 Accounts Receivable-
CJ’s Sports Corp. 9,600.00
5 21 Cash 10,700.00
6 Bad Debt Expense 2,200.00
7 Accounts Receivable-Four
Seasons Sportswear Co. 12,900.00
8 Feb.
15 Accounts Receivable-Healthy
Running Inc. 3,000.00
9 Bad Debt Expense 500.00
10 Sales 3,500.00
11 Mar.
4 Accounts Receivable-Four
Seasons Sportswear Co. 2,200.00
12 Bad Debt Expense 2,200.00
13 4 Cash 2,200.00
14 Bad Debt Expense 2,200.00
15 13 Cash 5,540.00
16 Accounts Receivable-
Barb’s Best Gear 5,540.00
17 31 Bad Debt Expense 20,970.00
18 Accounts Receivable-
Healthy Running Inc. 5,150.00
19 Accounts Receivable-
The Locker Room 4,100.00
20 Accounts Receivable-
CJ’s Sports Corp. 2,780.00
21 Accounts Receivable-
Get Your Gear Inc. 7,050.00
22 Accounts Receivable-
Ready-2-Go 1,890.00
CHART OF ACCOUNTS
Fan-Tastic Sports Gear Inc.
General Ledger
ASSETS
110 Cash
111 Petty Cash
121 Accounts Receivable-Healthy Running Inc.
122 Accounts Receivable-The Locker Room
123 Accounts Receivable-CJ’s Sports Corp.
124 Accounts Receivable-Get Your Gear Inc.
125 Accounts Receivable-Four Seasons Sportswear Co.
126 Accounts Receivable-Ready-2-Go
127 Accounts Receivable-Barb’s Best Gear
132 Notes Receivable-Fast Feet Co.
136 Interest Receivable
141 Inventory
145 Office Supplies
151 Prepaid Insurance
181 Land
191 Store Equipment
192 Accumulated Depreciation-Store Equipment
193 Office Equipment
194 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
211 Salaries Payable
212 Unearned Rent
213 Customer Refunds Payable
215 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Rent Revenue
612 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Sales Salaries Expense
521 Advertising Expense
522 Depreciation Expense-Store Equipment
523 Delivery Expense
529 Miscellaneous Selling Expense
530 Office Salaries Expense
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Office Supplies Expense
536 Credit Card Expense
537 Cash Short and Over
538 Bad Debt Expense
539 Misc. Administrative Expense
710 Interest Expense
1. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary changes.
2. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 20Y7.
3. Journalize the entry needed to record collection of the note at maturity on March 19, 20Y8.
Answer:
Accounts Receivable (Dr.) $9,600
Sales (Cr.) $9,600
Bad debt expense (Dr.) $500
Accounts Receivable (Cr.) $500
Bad Debt Expense (Dr.) $2,200
Accounts Receivable (Cr.) $2,200
Notes Receivable - Fast Feet (Dr.) $3,600
Sales (Cr.) $3,600
Explanation:
Fan-Tastic Sports Gear Inc., has incurred business transactions. It has recorded sales to Sportswear Co on accounts. The money is not received and the accounts receivable are offset by recording bad debt expense.
A firm must choose between two investment alternatives, each costing $105,000. The first alternative generates $35,000 a year for four years. The second pays one large lump sum of $152,500 at the end of the fourth year. If the firm can raise the required funds to make the investment at an annual cost of 9 percent, what are the present values of two investment alternatives
Answer:
Present Value of first option:
= -105,000 + 35,000/ (1 + 9%) + 35,000/(1 + 9%)² + 35,000/(1 + 9%)³ + 35,000/(1 + 9%)⁴
= -105,000 + 113,390.19
= $8,390.20
Present Value of second option:
= -105,000 + 152,500/ (1 + 9%)⁴
= -105,000 + 108,034.84
= $3,034.84
At the beginning of the recent period, there were 1,230 units of product in a department, 35% completed. These units were finished and an additional 6,100 units were started and completed during the period. 1,240 units were still in process at the end of the period, 25% completed. Using the weighted average method, the equivalent units produced by the department were:
Answer:
7,640 units
Explanation:
Calculation for what the equivalent units produced by the department were Using the weighted average method
First step is to calculate the units Completed & transferred out
Completed & transferred out =6,100+1,230
Completed & transferred out=7,330
Second step is to calculate the EGIP
EGIP= (1,240*25%)
EGIP=310
Now let calculate the equivalent units produced by the department
Equivalent units produced=7,330+310
Equivalent units produced=7,640 units
Therefore Using the weighted average method, the equivalent units produced by the department were:7,640 units
You are the director of marketing. Your department has been doing well, but the company as a whole has been losing revenue steadily each quarter. In an effort to stay in business, the company is reducing the salaries of all employees by 15 percent. You need to inform your employees. Your employees are expecting that there will be a pay reduction and unanimously voted to reduce salaries rather than fire employees to balance the budget.
Which outline would be most appropriate in this situation?
I. Thank employees for being willing to make a sacrifice for the good of the company
II. Inform the employees they will receive a 15% pay cut
III. Restate the facts of the company's financial situation
IV. Explain
A. The reasons why the company needs to take drastic action
B. The benefits of the company's strategy
V. Close with a forward-looking statement.
I. State the facts of the company's financial situation
II. Explain
A. The reasons the company needs to take drastic action
B. The benefits of the company's strategy
III. Inform the employees they will receive a 15% pay cut
IV. Close with a forward-looking statement
I. State the facts of the company's financial situation
II. Provide alternatives the company considered
A. Unemployment
B. Bankruptcy
III. Inform the employees they will receive a 15% pay cut
Answer:
I. Thank employees for being willing to make a sacrifice for the good of the company.
II. State the facts of the company's financial situation.
III. Inform employees that they will receive a 15% pay cut.
IV. Close with forward looking statement.
Explanation:
The company's financial situation has led the managers to decide for a pay cut instead of lay off to improve the financial position of the company and stay in the budget. The company should appraise employees that they understand the company's situation and are willing to accept the pay cut. The director should inform employees about the current financial situation and provide details about the pay cut plan. The email should close with a forward looking statement and a statement that as soon as the situation of company gets better the employees will receive full salaries as always.
Insurance company A and B both are life insurance companies that pay claims to a designated beneficiary upon death of an insured life. Company A insures 10,000 lives and expects to receive 525 claims this year. Company B insures 8,700 lives and expects to receive 410 claims this year. The actual number of claims for company A will range 500 < 550. The actual number of claims for company B will range from 369 < 451. Who faces the most objective risk
Answer:
Company B will faces the most objective risk
Explanation:
Company A: As Company A, insures 10,000 lives and expects to receive 525 claims this year.
They will end up saving 947,500,000 and paying 52,500,000 (525 claims*100,000), considering each claim value to be 100,000. Here goes the calculation:
10,000 x 100,000 = 1,000,000,000
1,000,000,000 - 52,500,000 = 947,500,000.
Company B: As Company B, insures 8,700 lives and expects 410 claims this year.
They will end up saving 829,000,000 and paying 41,000,000 (410 claims x 100,000), considering each claim value to be 100,000. Here goes the calculation:
8700 x 100,000 = 870,000,000
870,000,000 - 41,000,000 = 829,000,000.
Hence, the margin of profit is good for company A. Company B will have the face the risk more.
What is the proper factor notation for calculating the present worth of a gradient series, given a gradient amount of $500, an interest rate of 2%, and the number of periods equal to 10?
a) P-$500(PIF 290, 10)
b) P-$500(GIP 296, 10)
c) P-$500(PIA 296, 10)
d) P-$500(PIG 296, 10)
Answer:
Explanation:
d) P-$500(PIG 296, 10)
The records of Penny Co. indicated that $397,250 of merchandise should be on hand on December 31. The physical inventory indicates that $394,070 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for the year ended December 31.
Chart of Accounts
CHART OF ACCOUNTS
Penny Co.
General Ledger
ASSETS
110 Cash
120 Accounts Receivable
125 Notes Receivable
130 Merchandise Inventory
131 Estimated Returns Inventory
140 Supplies
142 Prepaid Insurance
180 Land
190 Equipment
191 Accumulated Depreciation
LIABILITIES
210 Accounts Payable
216 Salaries Payable
221 Sales Tax Payable
222 Customers Refunds Payable
231 Unearned Rent
241 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
EXPENSES
510 Cost of Merchandise Sold
521 Delivery Expense
522 Advertising Expense
523 Depreciation Expense
526 Salaries Expense
531 Rent Expense
533 Insurance Expense
534 Supplies Expense
536 Credit Card Expense
560 Miscellaneous Expense
710 Interest Expense
Answer:
Penny Co.
Adjusting Journal Entry for the inventory shrinkage for the year ended December 31:
Debit 510 Cost of Merchandise Sold $3,180
Credit 130 Merchandise Inventory $3,180
To record inventory shrinkage.
Explanation:
a) Data and Calculations:
Merchandise inventory on December 31 = $397,250
Physical inventory on December 31 = $394,070
Shrinkage = $3,180
b) Inventory Shrinkage is a cost to the business. It occurs when the physical inventory count yields an amount that is less than the amount in the accounting records. It may happen for some reasons, including theft, errors, damage, or loss. The best way to record inventory shrinkage is to debit the Cost of Goods Sold and to credit the Inventory account.
Nittany Company borrowed $60,000 from Lion Corporation on September 1, 2018 signing a 9-month payable with an interest rate of 3%. Nittany Co operates on a calendar year basis and is preparing its year-end financial statements In preparing its Income Statement for 2018, what amount of Interest Expense should Nittany Co. report from this note payable
Answer:
the interest expense that should be recorded in the income statement is $600
Explanation:
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest × given months
= $60,000 × 0.03 ÷ 12 × 4 months
= $600
Hence, the interest expense that should be recorded in the income statement is $600
Patterson Corporation expects to incur $70,000 of factory overhead and $60,000 of general and administrative costs next year. Direct labor costs at $5 per hour are expected to total $50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor
Answer:
$140
Explanation:
With regards to the above, since the factory overhead is to be applied per direct labor hour
= [$70,000 ÷ ($50,000 ÷ $5) 20 hours]
= $70,000 ÷ 10,000 × 20 hours
= $7 × 20 hours
= $140
Therefore, $120 will be applied to job incurring 20 hours of direct labor
Question 6 of 10
Match each business model with the type of business that commonly uses it.
Bricks and clicks
?
Grocery stores
Subscription
?
Magazines
Shopkeeper
Retail stores
?
Answer:
Bricks and Clicks - Retail Stores
Retail stores such as Walmart use a bricks and clicks model to ensure they sell as much as possible. Bricks and clicks refers to having both an online and an offline (physical location) presence where customers can come and buy in person if they want.
Grocery Stores - Shopkeeper
Grocery Stores are usually bricks and mortar which means that they are a physical location. This physical location is usually small and in need of being managed by a shopkeeper.
Subscription - Magazines
Magazines have found over the years that it is effective to offer their services as a subscription based one. That way they can be sure of a steady inflow of cash and people can be sure that they will receive magazines periodically.
Fox Corporation has provided its contribution format income statement for June. The company produces and sells a single product: sales (2,700 units), $261,900; variable costs, $102,600; contribution margin, $159,300; fixed costs, $136,300; and operating profit, $23,000.If the company sells 3,000 units, its total contribution margin should be closest to _____.A. $25,556
Answer:
Total contribution margin= $177,000
Explanation:
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= total contribution margin / number of units
Unitary contribution margin= 159,300 / 2,700
Unitary contribution margin= $59
Now, the total contribution margin for 3,000 units:
Total contribution margin= 3,000*59
Total contribution margin= $177,000
The 2020 accounting records of Skysong, Inc. reveal these transactions and events.
Payment of interest $10,800 Collection of accounts receivable $189,200
Cash sales 50,900 Payment of salaries and wages 56,900
Receipt of dividend revenue 19,000 Depreciation expense 16,100
Payment of income taxes 15,700 Proceeds from sale of vehicles 12,100
Net income 38,000 Purchase of equipment for cash 21,900
Payment of accounts payable Loss on sale of vehicles 3,100
For merchandise 115,600 Payment of dividends 14,700
Payment for land 73,700 Payment of operating expenses 27,600
Required:
Prepare the cash flows from operating activities section using the direct method.
Answer:
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Wildhorse Co., a ski tuning and repair shop, opened on November 1, 2016. The company carefully kept track of all its cash receipts and cash payments. The following information is available at the end of the ski season, April 30, 2017.
Cash Receipts Cash Payments
Issuance of common shares $19,900
Payment to purchase repair shop equipment $9,430
Payments to landlord 1,225
Newspaper advertising payment 365
Utility bill payments 885
Part-time helper's wage payments 2,950
Income tax payment 10,000
Cash receipts from ski and snowboard repair services 30,400
Subtotals 50,300 24,855
Cash balance 25,445
Totals $50,300 $50,300
The repair shop equipment was purchased on November 1 and has an estimated useful life of 5 years. Lease payments to the landlord are made at the beginning of each month. The payments to the landlord included a security deposit of $175. The part-time helper is owed $495 at April 30, 2017, for unpaid wages. At April 30, 2017, customers owe Wildhorse Co. $455 for services they have received but have not yet paid for.
Answer and Explanation:
The preparation is as follows:
1. Accrual basis Income statement
Revenues ($30,400 + $455) $30,855
Less: Expenses
News paper advertising -$365
Rent expense -$1,225
Utility bill payments -$885
Part time helpers wages ($2,950 + $495) -$3,445
income tax payment -$10,000
Depreciation expense
($9,430 ÷ 5 × 6 ÷ 12) -$943
total expense -$16,863
Net income $13,992
b) Balance sheet
Assets
Current assets
Cash $25,445
Account receivable $455
total current assets $25,900
PP&E
Equipment $9,430
less Accumulated depreciation -$943
total $8,487
total Assets $34,387
Liabilities
Current liabilities
Salaries and Wages payable $495
total liabilities $495
Stockholders Equity
common stock $19,900
Add: Retained Earnings $13,992
Stockholders Equity $33,892
total liabilities & Equity $34,387
You owe $5,000 on your credit card and you can pay the following monthly payments:
Month 1 2 3 4 5 6 7 8
Payment 500 550 600 650 700 750 800 850
IF the credit card company charges an interest rate of 1.5% per month, is this enough to pay off your credit card, and if so, by how much?
A. No, this cash flow falls short of paying off the credit card.
B. Yes, this cash flow exceeds the balance by $320.
C. Yes, this cash flow will pay off the credit card with $23.75 remaining.
D. No, this will only pay off $4,793.63 of the credit card.
Answer:
C. Yes, this cash flow will pay off the credit card with $23.75 remaining.
Explanation:
Calculation for how much will be enough to pay off your credit card
First step will be to use financial calculator to find the Net Present Value (NPV) of the payment amount from 1 month which is 500 to 8 month which is 850.
Hence,
NPV=$5,023.75
Now let calculate how much will be enough to pay off your credit card
Credit card pay off Amount =$5,023.75-$5,000
Credit card pay off Amount=$23.75
Therefore YES it will be enough to pay off the credit card and the amount that will be enough to pay off your credit card will be $23.75.
The following information was taken from the records of Waterway Inc. for the year 2020: Income tax applicable to income from continuing operations $216,920; income tax applicable to loss on discontinued operations $29,580, and unrealized holding gain on available-for-sale securities (net of tax) $17,400.
Gain on sale of equipment $110,200
Cash dividends declared $174,000
Loss on discontinued operations 87,000
Retained earnings January 1, 2020 2,640,000
Administrative expenses 278,400
Cost of goods sold 986,000
Rent revenue 46,400
Selling expenses 348,000
Loss on write-down of inventory 69,600
Sales Revenue 2,204,000
Shares outstanding during 2020 were 100,000.
Required:
Prepare a single-step income statement.
Answer:
Waterway Inc.
Single-step income statement
Particular Amount
Sales Revenue $2,204,000
Add: Rent Revenue $46,400
Total Revenue $2,250,400
Less: Expense
Cost of goods sold $986,000
Selling Expense $348,000
Administrative Expenses $278,400
Total Expenses $1,612,400
Income from operations $638,000
Other revenues and gains
Add: Gain on sale of equipment $110,200
Other expenses and losses
Less: Loss on write-down of inventory $69,600
Income from continuing operations $678,600
before income taxes
Less: Income taxes $216,920
Income from continuing operations $461,680
Discontinued operations:
Loss on discontinued operations $87,000
Income tax at loss on discontinued $29,580 $116,580
operation
Net Income $345,100
Per share of common stock:
Income from continuing operations (income from continuing operations /share outstanding = ($461,680/ 100000) = $4.62
Loss on discontinued operations, net of tax ($116,580 /100000) = $1.17
Net Income ($345,100/100,000) = $3.45
Can someone help me with this ?
Answer:
come over
Explanation:
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Forming a joint venture with an existing foreign company offers all of the following advantages excepta.providing control over product attributes.b.joining an established firm.c.requiring less commitment from all parties involved in the joint venture.d.providing immediate marketing knowledge.e.providing reduced risk.
Answer:
The correct answer is the option C: Requiring less commitment from all parties involved in the joint venture.
Explanation:
To begin with, the name of "joint venture" in the field of business refers to the method and strategy whose process consists of incorporating two or more parties into one only form of company with the final purpose of increasing the sales of every party included in the agreement and doing that by different ways. Moreover, generally this strategy has its focus on the fact of entering a new market or acquiring new management that will come with more resources and more. So that is why that it brings a lot of advantages as stated in the case presented but absolutely not less commintment from every party involved in it.
Automation Inc. is a company that provides wireless telecommunications network in several cities in the Midwest region, and the company plans to know more about its customers. The company found that one of his customers has a short customer history of 35, an above-average purchase amount of 75, a low repurchase desirability of 25, a weak product preference of 20, and the customer does not recommend the company's services to potential customers.
Required:
Based on the values provided, what is this customer's loyalty index?
Answer:
2,625
Explanation:
The customer's loyalty index is calculated by multiplying the customer's average purchase amount by the average purchasing frequency. Since both of these values are provided to us in the question we can simply go ahead and multiply them together to get his/her loyalty index.
35 * 75 = 2,625
Finally, we can see that the loyalty index of the customer in question is 2,625