Answer:
C. $500.
Explanation:
The Electronic Fund Transfer Act (EFTA) establishes that the owner of a stolen debit card is liable up to $500 for any transaction made by the thief if you report the incident after 2 business days but before 60 business days of occurring.
If Delilah reported the theft within 2 business days after the card was stolen, the customer is liable for up to $50, and if you report it before any fraud has occurred then you are not responsible for any amount.
On January 1, 2021, the Coldstone Corporation adopted the dollar-value LIFO retail inventory method. Beginning inventory at cost and at retail were $180,000 and $278,250, respectively. Net purchases during the year at cost and at retail were $735,200 and $907000, respectively. Markups during the year were $12,000. There were no markdowns. Net sales for 2021 were $866,500. The retail price index at the end of 2021 was 1.05. What is the inventory balance that Coldstone would report in its 12/31/2021 balance sheet? (Do not round intermediate calculations)
a. $252,000
b. $330,750
c. $210,870
d. $264,600
Answer:
The answer is $330750. the option (b) is correct
Explanation:
Solution
Given that:
The Balance sheet for Cold stone report recorded on 12/31/2021:
Cost Retail Ratio
Beginning Inventory $180,000 $278,250
Purchase $735,200 $907000
Net Markups $12,000
Less: Net markdowns $0
The cost of goods available
for sale $915200 $1197250 76%
Less sales $866,500
Ending Inventory $330750
Therefore the inventory balance for Cold stone is $330750
An 8-year project costs $475 and has cash flows of $100 for the first three years and $75 in each of the project's last five years. What is the payback period of the project
Answer:
It will take 6 years and 183 days to cover for the investment.
Explanation:
Giving the following information:
Cash flow:
Cf1 trough 3= 100
Cf4 trough 8= 75
Initial investment= 475
The payback period is the time required to recover the initial investment.
Year 1= 100 - 475= -375
Year 2= 100 - 375= -275
Year 3= 100 - 275= -175
Year 4= 75 - 175= -100
Year 5= 75 - 100= -25
Year 6= 75 - 25= 50
To be more accurate:
(25/50)*365= 183
It will take 6 years and 183 days to cover for the investment.
If you were given the task of totalling all the M2 money in circulation in the US, which of the following would you include in your calculations?
a. Demand deposits and other checking accounts
b. Currency
c. Savings accounts
Answer: Savings account
Explanation:
The money supply is the total amount of money that are available in an economy at a particular point in time.
M2 is a calculation used to know the value of money supply in circulation. M2 includes all elements M1 plus certificate of deposit, savings account and money market account. It should be noted that M1 is made up of currency PL s travellers check and checking accounts.
Therefore, of the options given above, savings account is added when calculating M2 money supply.
For the past year, Momsen, Ltd., had sales of $46,967, interest expense of $4,088, cost of goods sold of $17,184, selling and administrative expense of $12,051, and depreciation of $6,850. If the tax rate was 35 percent, what was the company's net income
Answer:
The Net Income is $4416.1
Explanation:
The net income is calculated as follows,
Sales $46967
Less:Cost of sales (17184)
Gross Profit 29783
Less:Expenses
Selling & Admin exp (12051)
Depreciation exp (6850)
Interest exp (4088)
Net income before ta 6794
tax expense (2377.9)
Net Income 4416.1
Suppose a bond issued by the European Central Bank and denominated in euros pays 44% per year. Today the exchange rate is 1.521.52 dollars per euro. It is expected that the exchange rate in one year will be 1.671.67 dollars per euro. What is the annual dollar return on this bond? A. negative 5−5 percent B. 1919 percent C. 44 percent D. 1414 percent
Answer:
D. 14 percent
Explanation:
The computation of the annual dollar return is shown below:
But before that we need to do following calculation
Let us assume the par value be $100
So, the bond par value is
= $100 × $1.52
= $152
The interest rate is
= $100 × 4%
= 4 euros
Future interest rate in dollars is
= 4 euros × 1.67
= $6.68
Now par value in the future is
= $100 × 1.67
= $167
Now the annual dollar return on this bond is
= (Future par value + Future interest rate in dollars - bond par value) ÷ (bond par value)
= ($167 + $6.68 - $152) ÷ ($152)
= 14.26%
hence, the correct option is d.
A customer enters your facility and discusses their most recent hunt. This was strictly a friendly, non-
professional conversation. According to your book, which of the following would you consider this use of
time in your business environment as?
1
Answer: Time spent
Explanation:
From the question, we are informed that a customer enters a facility and discusses their most recent hunt. We are further informed that it was strictly a friendly, non-professional conversation.
This will be consider as time spent in a business environment. Good customers relationship is needed for the success of every organization. Therefore, in this case, it'll be termed time spent.
Contribution Margin Concepts The following information is taken from the 2017 records of Hendrix's Guitar Center. Fixed Variable Total Sales $2,250,000 Costs Goods sold 1,012,500 Labor $480,000 180,000 Supplies 6,000 15,000 Utilities 36,000 39,000 Rent 72,000 0 Advertising 18,000 73,500 Miscellaneous 18,000 30,000 Total costs $630,000 $1,350,000 (1,980,000) Net income $ 270,000 Required (a.) Determine the annual break-even dollar sales volume. Contribution margin ratio: Answer Annual break-even dollar sales volumes: $Answer (b.) Determine the current margin of safety in dollars. $Answer (d.) What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by $100,000? $Answer
Answer and Explanation:
a. The computation of the contribution margin ratio and annual break even dollar sales volume is shown below:
Total sales $2,250,000
Less: Variable cost:
Goods sold -$1,012,500
Labor -$180,000
Supplies -$15,000
Utilities -$39,000
Advertising -$73,500
Miscelloneous -$30,000
Total variable cost ($1,350,000)
So, Contribution margin ratio $900,000
Now
Contribution margin ratio is
= contribution margin ÷ sales
= $900,000 ÷ $2,250,000
= 40%
And,
Annual breakeven dollars in sales volume is
= Fixed cost ÷ contribution margin ratio
= $630,000 ÷ 40%
= $1,575,000
b. Now the margin of safety in dollars is
= Current sales level - Break even sales level
= $2,250,000 - $1,575,000
= $675,000
d. Now the annual break even in dollars is
= Total fixed cost ÷ contribution margin
= ($630,000 + $100,000) ÷ 40%
= $730,000 ÷ 40%
= $1,825,000
We simply applied the above formulas
Overton Company has gathered the following information. Units in beginning work in process 20,300 Units started into production 185,700 Units in ending work in process 24,900 Percent complete in ending work in process: Conversion costs 60 % Materials 100 % Costs incurred: Direct materials $103,000 Direct labor $333,306 Overhead $186,200
Required:
a. Compute equivalent units of production for materials and for conversion costs.
b. Determine the unit costs of production.
c. Show the assignment of costs to units transferred out and in process.
Answer:
a. Materials = 206,000 units and Conversion costs = 196,040 units
b. Materials = $0.50 and Conversion costs = $2.65
c. Costs to units transferred out = $570,465 and Costs to units in process = $59,511
Explanation:
a. Calculation of Equivalent Units of Production for Materials and for Conversion costs
Units Completed and Transferred = Units in beginning work in process + Units started into production - Units in ending work in process
= 20,300 + 185,700 - 24,900
= 181,100
Materials
Units Completed and Transferred (181,100 × 100%) = 181,100
Units in Ending Work in Process (24,900 × 100%) = 24,900
Equivalent Units of Production = 206,000
Conversion costs
Units Completed and Transferred (181,100 × 100%) = 181,100
Units in Ending Work in Process (24,900 × 60%) = 14,940
Equivalent Units of Production = 196,040
b. Calculation of the unit costs of production.
Unit costs of production = Total Cost / Equivalent Units of Production
Materials = $103,000 / 206,000
= $0.50
Conversion costs = ($333,306 + $186,200) / 196,040
= $2.65
Total Unit Cost = $0.50 + $2.65
= $3.15
c. Assignment of costs to units transferred out and in process.
Costs to units transferred out = 181,100 × $3.15
= $570,465
Costs to units in process
Materials ($0.50 × 24,900) = $12,450
Conversion costs ($3.15 × 14,940) = $47,061
Total Cost = $59,511
A store will give you a 2% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate (EAR) being paid by customers who choose to defer payment for the month? Show your calcuation steps. If you use the financial calculator, tell me your inputs and output (i.e. pv,fv,n, i/Y, pmt).
Answer:
The implicit borrowing rate (EAR) being paid by customers who choose to defer payment for the month is 24.48%
Explanation:
In order to calculate the implicit borrowing rate we would have to calculate the following formula:
implicit borrowing rate=Discount%/(1-Discount%) *12/( payment months - discount month)
According to the given data we have the following:
Discount % =2
Payment days = 1 month
Therefore, implicit borrowing rate=2%/(1-2%)*12/1
implicit borrowing rate=(0.02/0.98)*12
implicit borrowing rate=24.48%
The implicit borrowing rate (EAR) being paid by customers who choose to defer payment for the month is 24.48%
High-Low Cost Estimation and Profit Planning Comparative 2007 and 2008 income statements for Dakota Products Inc. follow: DAKOTA PRODUCTS INC. Comparative Income Statements For Years Ending December 31, 2007 and 2008 2007 2008 Unit sales 5,000 8,000 Sales revenue $60,000 $96,000 Expenses (64,000) (76,000) Profit (loss) $(4,000) $20,000 (a) Determine the break-even point in units. Answer units (b) Determine the unit sales volume required to earn a profit of $5,000. Answer
Answer:
(a)
5,500 units
(b)
6,125 units
Explanation:
First, we need to calculate the per unit selling price.
2007 2008
Unit sales 5,000 8,000
Sales revenue $60,000 $96,000
Selling Price $12 $12
Now we need th separate the vairbale and fixed cost from total expense using high low method
Variable cost = ( Higher activity Expense - Lower activity Expense ) / ( Higher activity - Lower activity )
Variable cost = ( $76,000 - $64,000 ) / ( 8,000 units - 5,000 units )
Variable cost = $12,000 / 3,000 units = $4 per unit
Fixed cost = $76,000 - ( $4 x 8,000 units ) = $44,000
Contribution Margin = Selling Price - Variable cost = $12 - $4 = $8
(a)
Breakeven Point = Fixed Cost / Contributin margin per unit
Breakeven Point = $44,000 / $8 = 5,500 units
(b)
Target sales = ( Fixed cost + Desired Profit ) / Contribution margin per unit
Target sales = ( $44,000 + $5,000 ) / $8 = 6,125 units
An accountant has debited an asset account for $5,000 and credited a revenue account for $10,000. What can be done to complete the recording of the transaction?a) Nothing further can be doneb) Credit a shareholders equity account for $5,000c) Debit another asset account for $5,000d) Credit an asset account for $5,000
c) Debit another asset account for $5,000
The calculation is as follows:Since the asset is debited for $5,000 and the revenue account is credited for $10,000
So we have to equal both the amount
Asset Dr $5,000
Asset Dr $5,000
To Revenue $10,000
Learn more: https://brainly.com/question/994316?referrer=searchResults
Unearned Seminar Fees has a balance of $6,500, representing prepayment by customers for five seminars to be conducted in June, July, and August 2019. Two seminars had been conducted by June 30, 2019.
Prepaid Insurance has a balance of $6,000 for six months’ insurance paid in advance on May 1, 2019.Store equipment costing $19,840 was purchased on March 31, 2019. It has a salvage value of $400 and a useful life of six years.Employees have earned $150 that has not been paid at June 30, 2019.The employer owes the following taxes on wages not paid at June 30, 2019: SUTA, $4.50; FUTA, $0.90; Medicare, $2.18; and social security, $9.30.Management estimates uncollectible accounts expense at 1 percent of sales. This year’s sales were
$1,000,000.Prepaid Rent has a balance of $5,100 for six months’ rent paid in advance on March 1, 2019.The Supplies account in the general ledger has a balance of $300. A count of supplies on hand at June 30, 2019, indicated $100 of supplies remain.The company borrowed $10,600 from First Bank on June 1, 2019, and issued a four-month note. The note bears interest at 6 percent.Required:Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 2019. The company has a June 30 fiscal year-end.
Answer:
Dr Merchandise Inventory 500.00
Cr Cost of Goods Sold 500.00
Dr Unearned Seminar Fees 2,000.00
Cr Seminar Fees 2,000.00
Dr Insurance Expense 2,000.00
Cr Prepaid Insurance 2,000.00
Dr Depreciation Expense 810.00
Cr Accumulated Depreciation 810.00
Dr Wages Expense 150.00
Cr Wages Payable 150.00
Dr Payroll tax expense 16.88
Cr SUTA Payable 4.50
Cr FUTA Payable 0.90
Cr Medicare Payable 2.18
Cr Social Security Payable 9.30
Dr Bad Debt Expense 10,000.00
Cr Allowance for Doubtful Debts 10,000.00
Dr Rent Expense 3,400.00
Cr Prepaid Rent 3,400.00
Dr Supplies Expense 200.00
Cr Supplies 200.00
Dr Interest Expense 53.00
Cr Interest Payable 53.00
Explanation:
Journal entries for Unearned Seminar Fees
Dr Merchandise Inventory 500.00 (7000-6500)
Cr Cost of Goods Sold 500.00
(Increase in inventory on hand)
Dr Unearned Seminar Fees 2,000.00 (5000/5*2)
Cr Seminar Fees 2,000.00
(Fees earned during the period)
Dr Insurance Expense 2,000.00 (6000/6*2)
Cr Prepaid Insurance 2,000.00
(Prepaid insruance expired)
Dr Depreciation Expense 810.00 [(19840-400)/6*3/12]
Cr Accumulated Depreciation 810.00
(Deprecaition expense for the period)
Dr Wages Expense 150.00
Cr Wages Payable 150.00
(Wages accrued but not paid)
Dr Payroll tax expense 16.88
Cr SUTA Payable 4.50
Cr FUTA Payable 0.90
Cr Medicare Payable 2.18
Cr Social Security Payable 9.30
(Payroll tax expense)
Dr Bad Debt Expense 10,000.00 (1,000,000*1%)
Cr Allowance for Doubtful Debt 10,000.00
(Bad debt expense)
Dr Rent Expense 3,400.00 (5100/6*4)
Cr Prepaid Rent 3,400.00
(Prepaid rent expired during the period)
Dr Supplies Expense 200.00
(300-100)
Cr Supplies 200.00
(Supplies consumed during the period)
Dr Interest Expense 53.00 (10600*6%*1/12)
Cr Interest Payable 53.00
(Interest accrued but not paid)
The Balance in Prepaid Rent is :
5100 - 3400 = 1700
What is the effect of the amortization of Discount on Bonds Payable on Interest Expense and the Bonds Payable account, respectively?
Answer:
The amortization of discount on bonds payable increases the interest expense and decreases the bonds payable balance. Discount on bonds payable is a contra liability account with a debit balance that decreases the credit balance of the bonds payable account.
Explanation:
E.g. $100,000 in bonds are issued, annual coupons with a 4% interest rate, matures in 5 years and sells for $90,000
the journal entry to record the issuance
Dr Cash 90,000
Dr Discount on bonds payable 10,000
Cr Bonds payable 100,000
The journal entry to record first coupon payment using straight line method of amortization
Dr Interest expense 6,000
Cr Cash 4,000
Cr Discount on bonds payable 2,000
The bonds payable account balance after the first coupon payment = $92,000
During the week ended May 15, 2019, Scott Fairchild worked 40 hours. His regular hourly rate is $15. Assume that all of his earnings are subject to social security tax at a rate of 6.2 percent and Medicare tax at a rate of 1.45 percent. He also has deductions of $32 for federal income tax and $22 for health insurance. What is his gross pay for the week? What is the total of his deductions for the week? What is his net pay for the week?
Answer:
Gross pay = 600
Deductions = 99.9
Net Pay = 500.1
Explanation:
Requirement A:
Gross Pay = 40 hours x $15/hour
Gross Pay = $600
Requirement B:
Security Tax ( 600 x 6.2%) = $37.2
Medicare tax ( 600 x 1.45%) = $8.7
Federal Income = $32
Health Insurance = $22
Total deductions = $99.9
Requirement C :
Net Pay = Gross pay - all deductions
Net Pay = $600 - 99.9
Net Pay = 500.1
Why do you think Red Lobster relies so much on Internet surveys to track customer opinions, preferences, and criticisms
Answer:
Red Lobster is a seafood restaurant chain from the United States that has about 719 restaurants around the world and I consider that this chain relies on internet surveys to track customer opinions, preferences, and criticisms because it allows them to identify changes in consumers and on their preferences in a way that helps them to respond quickly before any issue affects the brand.
Statement of cash flows
On January 1, 2013, Palmetto, a fast-food company, had a balance in its Cash account of $32,000. During the 2013 accounting period, the company had (1) net cash inflow from operating activities of $15,600, (2) net cash outflow for investing activities of $23,000, and (3) net cash outflow from financing activities of $4,500.
Required
a. Prepare a statement of cash flows.
b. Provide a reasonable explanation as to what may have caused the net cash inflow from operating activities.
c. Provide a reasonable explanation as to what may have caused the net cash outflow from investing activities.
d. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities.
Answer:
a.
Palmetto Statement of Cashflows
For the Year Ended December 31, 2013
Cashflow from Operating Activities
Net Cashflow from Operaing Activities $15,600
Cashflow from Investing Activities
Net Cashflow from Investing Activities ($23,000)
Cashflow from Financing Activities
Net Cashflow from Financing Activities ($4,500)
Net Increase (Decrease) ($11,900)
Add: Beginning of Period Cash balance $32,000
Ending Cash Balance $20,100
b. Operating Cash flow relates to the normal business operations of the business. A Net Cash Inflow from this therefore means that the business made a profit from its normal operations of selling fast food during 2013.
c. Investing Activities relate to transaction involving Fixed Assets as well as the stocks and bonds of other companies. The Net Cash flow was probably caused by Palmetto buying more Fixed Assets than they disposed of in the year 2013.
d. Financing activities relate to how the business is financed in terms of Equity and debt. The payments of Dividends therefore fall under here as they relate to Equity. A net cash outflow here therefore probably means that Palmetto paid out dividends to shareholders. They might have also repaid some loans but judging by how small the outflow is, the loans were either small or it was only dividends that were paid out.
Assume that a technological breakthrough lowers the cost of manufacturing automobiles. As a result of this event, we could reasonably expect:
Answer:
a shift right in the supply for automobiles
Explanation:
Since in the question it is mentioned that due to the breakthrough of technologies it lowers the cost of manufacturing automobiles so ultimately it rise the producers profitability that results in more production of automobiles.
Therefore there is a rise in the supply of automobiles that shift the supply curve in rightward
So, the fifth option is correct
Using the CAPM, compute the cost of equity capital for the lodging division at the target leverage ratio for the division. Explain why this is higher than the cost of equity capital if Marriott had a zero-debt policy.
Answer:
Information from 1987:
There is a lot of information missing, I'll try to fill some important blanks:
Marriots's total debt $2,500 million (59% of total capital)
since debt to capital ratio = total debt / (total equity + debt)
then, we can assume equity = $1,737 million (41% of total capital)
the lodging division's number were a little different:
debt to capital 74%
equity = 26%
cost of debt = 1.1% + long term US securities interest rate (8.95%) = 10.05%
cost of equity = risk free rate + (beta x risk premium) =
risk free rate = short term T-bills = 5.46%beta = 1.11market premium = 7.92%cost of equity = 5.46% + (1.11 x 7.92%) = 14.25%
Marriot's Lodging division's WACC = (26% x 14.25%) + (74% x 10.05% x (1 - 42% corporate tax rate) = 3.71% + 4.31% = 8.02%
If Marriot had a zero debt policy, its cost of equity would be lower because the business risk would be lower. The cost of debt is lower because interest payments decrease income taxes. But at the same time, you have to earn enough money to pay your interest obligations on time. That extra pressure to make more money, increases the company's risk. As the company's risk increases, investors will demand higher returns for their investment. That is why T-bills yield the lowest returns, simply because they are a extremely safe investment. As risk increases (more interests = more risks), investors will demand a higher rate of return and cost of equity will increase.
On January 1, James Industries leased equipment to a customer for a four-year period, at which time possession of the leased asset will revert back to James. The equipment cost James $700,000 and has an expected useful life of six years. Its normal sales price is $700,000. The residual value after four years, guaranteed by the lessee, is $100,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. Collectibility of the remaining lease payments is reasonably assured, and there are no material cost uncertainties. The interest rate is 5%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Calculate the amount of the annual lease payments
Guaranteed Residual Value
Table or calculator function: n=?, i=?
Amount ot be recovered (fair value) $?
Guaranteed residual value $?
Amount to be recovered through periodic lease payments $?
Lease Payment
Table or calculator function: PVAD of $1 ?
n=?, i=?
Amount of fair value recovered each lease payment (Lease Payments $?)
* I would like to make sure the answer is correct. Please provide step by step calculate and explain.
Answer:
- $700,000
- 82,270
- $617,730
- present value of $1: n=4, i=5%
- the present value of an ordinary annuity of $1: n=4, i=5%
Explanation:
Amount to be recovered (fair value): $700,000
Less: Present value of the residual value ($100,000 x .82270*): 82,270
Amount to be recovered through periodic lease payments: $617,730
Lease payments -: end of each of the next four years: ($617,730 ÷ 3.54595**) $174,207
* present value of $1: n=4, i=5%
** present value of an ordinary annuity of $1: n=4, i=5%
A fruit company sells oranges for 32 cents a pound plus $7.50 per order for shipping. If an order is over 100 pounds, shipping cost is reduced by $1.50. This program is supposed to ask the user for the number of pounds of oranges and then print the cost of the order, but it is all mixed up! Can you put the lines in the right order?
Answer:
def cost_of_order(amount):
cost = amount * 32
if amount <= 100:
print (cost + 7.50)
else:
print(cost + 7.50 - 1.50)
cost_of_order(10)
Explanation:
This question requires we write a code to get the cost of the order. The total cost of the order including the shipping cost . Let us use function to solve this and the code will be written in python .
def cost_of_order(amount):
The first line of code depict a function we declared and called it cost_of_order. The parameter is amount which is the weight of the oranges ordered in pounds.
cost = amount * 32
Now the cost of the orange will be the product of the weight in pounds and the price of each pound. The actual price of the product will be 32 multiply by the amount in pounds.
if amount <= 100:
This simply means if the amount in pounds of the orange is less or equal to 100 the next line of code we run
print (cost + 7.50)
This block of code will run if the amount of orange in pounds is less than or equals to 100. Remember the amount in pounds must be over 100 before the cost of shipping will be deducted by $ 1.50 . Therefore, the cost will be added to $7.50 and printed.
else:
this simply means otherwise
print(cost + 7.50 - 1.50)
This line of code will be printed if the amount in pounds is over 100. Notice that $1.50 is reduced from the usual cost(including the shipping cost)
cost_of_order(10)
We call the function at this stage with the parameter which is the amount in pounds.
Run this code you will get the cost of the order .
How can the firm best motivate and select service employees who, because the service is delivered in real time, become a critical part of the product itself?
Answer:
The product will not reach the customer or you may not get a good reputation without the employee being effiecient in the job if you list the delivery time in real time, thus leaving your business with an unpopular local opinion and review of your product and delievery.
Explanation:
Determine the net income of a company for which the following information is available for the month of July. Employee salaries expense $199,000 Interest expense 29,000 Rent expense 39,000 Consulting revenue 476,000 g
Answer:
The answer is $209,000
Explanation:
Income = Total revenue minus Total expenses
So for this question:
Net Income will be:
Revenue(Consulting Revenue) minus Total expenses (Employee Salaries Expense plus Interest Expense plus Rent Expense)
Net Income = $476,000 - ($199,000 + $29,000 + $39,000
Net Income = $476,000 - $267,000
= $209,000
Kleiner Merchandising Company Accumulated depreciation $ 700 Beginning inventory 12,000 Ending Inventory 7,200 Expenses 2,150 Net Purchases 15,100 Net Sales 23,500 Krug Service Company Expenses $ 10,200 Revenues 28,000 Cash 800 Prepaid rent 580 Accounts payable 200 Equipment 2,500 Required: a. Compute the goods available for sale, and the cost of goods sold and gross profit for the merchandiser. Hint: Not all information may be necessary. b. Use the above information from a service company and from a merchandiser to compute net income.
Answer:
A.Goods available for sale $27,100
Cost of Goods Sold $19,900
Gross Profits $3,600
B.Net Income for Krug Servie company $17,800
Net Income for Kleiner Merchandising $1,450
Explanation:
Kleiner Merchandising Company
a. Computation of the goods available for sale, and the cost of goods sold and gross profit for the merchandiser.
GOODS AVAILABLE FOR SALE
Beginning Inventory $12,000
Add Net Purchases $15,100
Goods available for sale $27,100
COST OF GOODS SOLD
Goods available for sale $27,100
Less Ending inventory $7,200
Cost of Goods Sold $19,900
GROSS PROFIT
Cost of Goods Sold $19,900
Less Net Sales $23,500
Gross Profits $3,600
b. Using the above information from a service company and from a merchandiser to compute for the net income.
Net Income for Krug Servie company $17,800
($28000 revenue - $ 10200 expenses)
Net Income for Kleiner Merchandising $1,450
company ($3600 gross profits - $ 2150 expenses)
Knowledge Check 01 On March 15, Viking Office Supply agrees to accept $1,200 in cash along with a $2,800, 60-day, 15 percent note from one of its customers to settle his $4,000 past-due account. Prepare the March 15 entry for Viking Office Supply by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Viking Office Supply
Debit Accounts Receivable $4,000
Credit Allowance for Uncollectible Accounts $4,000
To revise the write-off of past-due account.
Debit Cash Account $1,200
Debit 15% Notes Receivable $2,800
Credit Accounts Receivable $4,000
To record the cash receipt and notes settlement.
Explanation:
Since the account is past-due, it must have been written off as uncollectible expense. To revise this entry, a credit is made to the Allowance for Uncollectible Accounts and a debit to the Accounts Receivable.
Then a debit to the Cash Account in the sum of $1,200 and a debit to the Notes Receivable account for $2,800 and a credit to the Accounts Receivable.
Alpha Company has assets of $610,000, liabilities of $255,000, and equity of $355,000. It buys office equipment on credit for $80,000. What would be the effects of this transaction on the accounting equation
Answer:
Both assets and liabilities increase by $80,000
Explanation:
To start with, it is imperative to show the equation before and after the purchase of equipment on credit
Assets =Equity + liabilities
$610,000 =$255,0000 +$355,000
The equipment's purchase would increase the value of assets and liabilities by $80,000
Assets =Equity + liabilities
$610,000+$80,000=$255,000 +($355,000+$80,000)
$690,000 =$255,000 +$435,000
Comfort Mattresses, Inc. sold 26,000 shares of its $1 par value common stock at a cash price of $12 per share. The entry to record this transaction would be:
Answer:
Debit cash for $312,000
Credit common stock for $26,000
Credit Paid in capital in excess of par value, common stock for $286,000.
Explanation:
Selling the share at $12 per share which is higher than the par value of $1 indicates that the shares are sold at a premium of $11 (i.e. $12 - $1 = $11). Therefore, there is a paid in capital in excess of par value of $11 per share.
Before posting the entries, we do the following calculation first.
Cash received = 26,000 * $12 = $312,000
Common stock = 26,000 * $12 = $26,000
Paid in capital in excess of par value = 26,000 * 11 = $286,000
The entry to record this transaction would therefore appear as follows:
Pariculars Dr ($) Cr ($)
Cash 312,000
Common stock 26,000
Paid in capital in ex. of par v. - Common stock 286,000
To record issue of common stock at a premium.
You are analyzing the Statement of Cash flows for Coffey Corporation. You have the following information: Beginning Cash: $220
Operating Activity: $497
Investment Activity $598
Financing Activity: −$212
Calculate the Net cash increase/decrease:
Answer:
The net cash increase is $883
Explanation:
Coffey corporation
Statement of cash flows
Net cash provided by Operating activities $497
Net cash provided by investing activities $598
Net cash provided by financing activities -($212)
Net increase in cash $883
The net cash increase is = $883
If government regulators guarantee a natural monopolist that it will earn normal profits, then the monopolist will Group of answer choices
Answer:
If government regulators guarantee the natural monopolist that it will earn a normal profit, then, the monopolist will not have any incentive to hold down costs.
Explanation:
Normal profits are the profits that allow a business to cover its total costs: both explicit costs and implicit costs. Explicit costs are those that have to be paid explicitely, for example: rent or wages, while implicit costs are the opportunity costs of not running a business.
If the natural monopolist has a government guarantee that it will always make a normal profit, then, it will not have any incentive to reduce costs, whether explicit costs or implicit costs.
2.You are a shareholder in an S corporation. The corporation earns $2.07 per share before taxes. As a pass through entity, you will receive $2.07 for each share that you own. Your marginal tax rate is 20%. How much per share is left for you after all taxes are paid
Answer:
1.66
Explanation:
From the question above, S corporation earns $2.07 per share before taxes are paid.
$2.07 is received for each share
The marginal tax rate is 20%
= 20/100
= 0.2
Therefore, the amount of shares that is left after payment of taxes can be calculated as follows
Amount of shares left= Price per share-(Price per share×tax rate)
= $2.07-($2.07×0.2)
= $2.07-0.414
= 1.66
Hence the amount of shares left after taxes have been paid is 1.66
Future Value At age 20 you invest $1,000 that earns 7 percent each year. At age 30 you invest $1,000 that earns 10 percent per year. In which case would you have more money at age 60?
Answer:
In the case of age 30, there will be more money at the age of 60
Explanation:
When person start investing at the age of 20 then total year till 60 years age is = 40 years.
Interest rate (r ) = 7 percent or 0.07.
Investment amount (Present value) = $1000
Now the total amount at the age of 60 years is calculated below.
[tex]Total \ amount = Present \ value (1 + r)^{n} \\= 1000 ( 1 + 0.07 ) ^{40}\\= 14974.4578 \ dollars[/tex]
Now calculate the total amount at the age of 60 years when he invest at the age of 30 and earns interest rate 10 percent. Now the number of years is 30.
[tex]Total \ amount = Present \ value (1 + r)^{n} \\= 1000 ( 1 + 0.1 ) ^{30}\\= 17449.4023 \ dollars[/tex]