Answer:
1. Debit Deferred Tax Liability for $150,000; and Credit Income Tax Benefit -Operating Loss for $150,000.
2. See part 2 below for how it is shown.
Explanation:
1. Prepare the journal entry to recognize the income tax benefit of the net operating loss.
Income tax benefit = Net operating loss * Tax rate = $375,000 * 40% = $150,000
The journal entry will look as follows:
Particulars Debit ($) Credit ($)
Deferred Tax Liability 150,000
Income Tax Benefit - Operating Loss 150,000
(To record the income tax benefit)
2. Show the lower portion of the 2016 income statement that reports the income tax benefit of the net operating loss.
This can be shown as follows:
Baginski Steel Corporation
Income Statement
For the Year Ended 2016
Details $
Net operating loss (375,000)
Income tax benefit 150,000
Net loss (225,000)
Splish Brothers Inc. gathered the following reconciling information in preparing its August bank reconciliation:______.
Cash balance per books, 8/31 $33600 Deposits in transit 1400 Notes receivable and interest collected by bank 8200 Bank charge for check printing 190 Outstanding checks 19200 NSF check 1630
The adjusted cash balance per books on August 31 is:_______.
a. $38580.
b. $22040.
c. $23580
d. $39980.
Answer:
d. $39,980
Explanation:
Given the above information, the adjusted cash balance per books on August 31
= Cash opening + Collection by bank - Bank charge check printing - NSF check
The next step is to fix in the values as given above.
= $33,600 + $8,200 - $190 - $1,630
= $39,980
Therefore, the adjusted cash balance per books on August 31 is $39,980
The price of used cars and trucks in US has increased by 21% including a 10% increase in April alone, while the volume of used car transactions is keeping going up to a record high. Which of the following group of economic variables will go up as a result of a booming used car market?
A. CPI but not GDP deflator, PPI and real GDP
B. CPI and GDP deflator, but not real GDP and PPI
C. CPI, GDP deflator and, real GDP, but not PPI
D. CPI, GDP deflator, real GDP and PPI
Answer:
C
Explanation:
The consumer price index measures the changes in price of a basket of good. It is used to measure inflation. Because the price of price of used cars and trucks in US has increased , the CPI would increase
GDP deflator = (nominal GDP / real GDP) x 100
the volume of cars bought have increased, as a result, GDP deflator would increase
A job cost sheet of Sandoval Company is given below.
Job Cost Sheet
JOB NO. 469 Quantity 2,500
ITEM White Lion Cages Date Requested 7/2
FOR Todd Company Date Completed 7/31
Date Direct Direct Labor Manufacturing
Materials Labor Overhead
7/10 700
12 900
15 440 550
22 380 475
24 1,600
27 1,500
31 540 675
Cost of completed job:
Direct materials
Direct labor
Manufacturing overhead
Total cost
Unit cost
(1) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job?
Source Documents
Direct materials pixel.gifMaterials requisition slipsPredetermined overhead rateTime tickets
Direct labor pixel.gifMaterials requisition slipsPredetermined overhead rateTime tickets
Manufacturing overhead pixel.gifMaterials requisition slipsPredetermined overhead rateTime tickets
(2) What is the predetermined manufacturing overhead rate? (Round answer to 0 decimal places e.g 135.)
Predetermined manufacturing overhead rate pixel.gif %
(3) What are the total cost and the unit cost of the completed job? (Round unit cost to 2 decimal places, e.g. 1.25.)
Total cost of the completed job $pixel.gif
Unit cost of the completed job $pixel.gif
Answer:
A. Direct materials-Materials requisition slips
Direct labor-Time tickets
Manufacturing overhead- Predetermined overhead rate
B. 125%
C. Total cost $7,760
Unit cost $3.104
Explanation:
1. Based on the information given the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job are :
Direct materials-Materials requisition slips
Direct labor-Time tickets
Manufacturing overhead- Predetermined overhead rate
2. Calculation to determine the predetermined manufacturing overhead rate
Predetermined overhead rate=$550/$440*100
Predetermined overhead rate=125%
Therefore the predetermined manufacturing overhead rate is 125%
3. Calculation to determine the total cost and the unit cost of the completed job
TOTAL COST
Direct Material $4, 700
($700 + $900 + $1,600 + $1,500)
Add Direct Labor $1,360
($440 + $380 + $540)
Add Manufacturing Overhead $1,700
($550 + $475 + $675)
Total Cost $7,760
UNIT COST
Unit cost= $7,760/ 2,500
Unit cost=$3.104
Therefore the total cost is $7,760 and the unit cost of the completed job is $3.104
A 2 kg object traveling at 5 m/s on a frictionless horizontal surface collides head-on with and sticks to a 3 kg object initially at rest. Which of the following correctly identifies the change in total kinetic energy and the resulting speed of the objects after the collision?
Kinetic Energy Speed
(A) Increases 2 m/s
(B) Increases Soold 3.2 m/s
(C) Decreases 2 m/s
(D) Decreases 3.2 m/s
Answer:
Decreases 2 m/s
Explanation:
This is an inelastic collision :
m1u1 + m2u2 = (m1 + m2)v
Where ;
m1 and u1 = mass and initial velocity of object 1
m2 and u2 = mass and initial velocity of object 2
v = final velocity of the objects
m1 = 2kg ; m2 = 3kg ; u1 = 5 m/s ; u2 = 0 ; v =?
m1u1 + m2u2 = (m1 + m2)v
(2*5) + (3*0) = (2 + 3)v
10 + 0 = 5v
10 = 5v
v = 10/5
v = 2m/s
Teal Mountain Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12.00.00 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 2.5 hour per unit, and the allowance for rest periods and setup is 0.1 hours and 0.2 hours, respectively. The standard direct materials price per pound is:______.
Answer:
$2.127.
Explanation:
According to the scenario, computation of the given data are as follows,
Purchase price per pound = $2
Freight (Add) = $0.10
Handling cost (Add) = $0.07
Total cost = $2.17
Discount (Less) = (2% × $2.17) = $0.043
Direct material price = $2.127
Hence, standard direct materials price per pound is $2.127.
Kenji and Lucia are building their portfolios. Kenji purchases shares in a mutual fund and pays fees to a manager who actively manages the mutual fund's portfolio. He does so because he believes that the manager can identify inexpensive stocks that will rise in value. Lucia is not convinced. She buys shares in an index fund—a type of mutual fund that simply buys all of the stocks in a given stock index rather than actively managing a portfolio.
Kenji builds his portfolio on the supposition that:________
a. Stock analysts can use fundamental analysis to identify undervalued stocks.
b. Stock prices follow a random walk
c. The stock market exhibits informational efficiency.
Answer:
a. Stock analysts can use fundamental analysis to identify undervalued stocks.
Explanation:
Since in the question it is mentioned that he would trust the manager that it could identify the inexpensive stock that would increase the value but on the other side lucia not convinced, so she purchased the shares
So the kenji create his portfolio based on that the stock analyst would applied the fundamental analysis in order to analyze the undervalue of the stock
hence, the option a is correct
Kenji and Lucia are building their portfolios. Kenji purchases shares in a mutual fund and pays fees to a manager who actively manages the mutual fund's portfolio. He does so because he believes that the manager can identify inexpensive stocks that will rise in value. Lucia is not convinced. She buys shares in an index fund—a type of mutual fund that simply buys all of the stocks in a given stock index rather than actively managing a portfolio.
Kenji builds his portfolio on the supposition that:________
A. Stock analysts can use fundamental analysis to identify undervalued stocks.B. Stock prices follow a random walk
C. The stock market exhibits informational efficiency.
-KeonLee
I hope it help
#Carry on learning
The Aleander Company plans to issue $10,000,000 of 20-year bonds at par next June, with semiannual interest payments. The company's current cost of debt is 10 percent. However, the firm's financial manager is concerned that interest rates will increase in coming months, and has decided to take a short position in U. S. government t-bond futures. See the settlement data below for t-bond futures. (Note: One standard futures contract is $100,000).
a. Calculate the present value of the corporate bonds if rates increase by 2 percentage points.
b. Calculate the gain or loss on the corporate bond position.
c. Calculate the number of contracts required to cover the bond position. Then calculate the current value of the futures position.
d. Calculate the implied interest rate based on the current value of the futures position.
e. Interest rates increase as expected, by 2 percentage points. Calculate the present value of the futures position based on the rate calculated above plus the 2 points.
f. Calculate the gain or loss on the futures position.
g. Calculate the overall net gain or loss.
h. Is this problem an example of a perfect hedge or a cross hedge? Is it an example of speculation or hedging? Why?
Delivery Month Open High Low Settle Change Open Interest
(1) (2) (3) (4) (5) (6) (7)
Dec 103'14 103'14 102'11 102'17 -6 678,000
Mar 102'11 102'23 100'28 101'01 -5 135,855
June 101'14 101'26 100'02 100'12 -5 17,255
I have tried to explain it in extremely simple words and kept it precise too. I have made an excel file and compiled the answer in that clearly. All the parts are clearly mentioned. Please download the document and understand clearly. All the parts are solved independantly. Please find the attached file. Thanks.
Waterway Industries estimates its sales at 240000 units in the first quarter and that sales will increase by 26000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at:
a. $5,735,800.
b. $11,574,800.
c. $8,380,400.
d. $10,056,200.
Answer:
d. $10,056,200.
Explanation:
The computation of the cash collection for the third quarter is shown below;
Sales in quarter 1 is 240,000 units
Sales in quarter 2 is 240,000 + 26000 units = 266,000 units
And, the sales in quarter 3 is 266,000 units + 24000 units = 292,000 units
Now
= (292,000 units × $35 × 40%) + (292,000 × $35 × 60% × 70%) + (266,000 units × $35 × 60% × 30%)
= $4,088,000 + $4,292,400 + $1,675,800
= $10,056,200
RKJ Company has provided the following: 100,000 shares of $5 par value common stock are authorized 66,000 shares were issued 61,000 shares are outstanding. Which of the following statements is correct based only on the above facts?
A) Additional-paid in capital is reported at $112,000 on the balance sheet.
B) Treasury stock is reported at $35,000 on the balance sheet.
C) Common stock is reported at $462,000 on the balance sheet.
D) Common stock is reported at $330,000 on the balance sheet.
Answer: D) Common stock is reported at $330,000 on the balance sheet.
Explanation:
The value of the common stock in the balance sheet is calculated by:
= Shares issued * Par value
= 66,000 * 5
= $330,000
If the shares were sold for higher than the par value, the excess amount would go the Additional Paid-In capital.
Examples of successfulness of the competition policy in South Africa
Explanation:
By Kgomotso Ramotsho
The Competition Law Committee of the Law Society of the Northern Provinces held its last Annual Gala Breakfast in October 2018 in Johannesburg. The gala breakfast was organised and hosted by ENSafrica. Members of the panel discussed ‘Experiencing twenty years of competition practice’. The Competition Commission Commissioner, Tembinkosi Bonakele, said South Africa (SA) has challenges in the economic front and added that employment growth numbers were not impressive.
Mr Bonakele said this is a challenge and added that there can be talks about what the Competition Commission can contribute, however, there are concerns about the structure of the economy and concentration levels in the economy. He pointed out that another challenge, is with regards to developing competition experts. He said that SA could have done better in developing experts. He pointed out that when looking at who the experts are, the economic front is dominated by European experts, instead of local experts.
Mr Bonakele said it was easy for legal practitioners to make the transition into competition law. However, he added that another challenge is with economists. He said universities should produce a pool of economists that can help in the industry. Full-time member of the Competition Tribunal, Yasmin Carrim, added that the industry was not doing enough and that the pool of economists is small. She pointed out that it was not only up to universities to produce expert economists. She said the industry needed to grab the opportunity and utilise different strategies, such as giving practical training or internships to students, so that when they graduate they would have a sense of the work environment.
Full-time member of the Competition Tribunal, Yasmin Carrim, listed the quality of work done by competition law legal practitioners and economists in South Africa as one of the successes in the industry. She spoke at the last annual gala breakfast held in Johannesburg by the Competition Law Committee of the Law Society of the Northern Provinces.
Ms Carrim, however, said that from her personal experience, one of the successes in the industry has been the quality of work done by both legal practitioners and economists in the country. Mr Bonakele added that SA has made strides in establishing itself as a respected jurisdiction with locally developed practices and sharpened skills in the competition area, he noted that these were good signs. Judge President of the Competition Appeal Court, Dennis Davis, posed a question to Mr Bonakele with regards to work done by experts outside SA.
Mr Bonakele said the Competition Commission has relied on local experts. However, he pointed out that the issue is with the number of local experts. He noted that the country has knowledgeable experts even though they are few in numbers. He added that even though foreign experts are brought in to work in SA, they should team up with local experts as they understand the local conditions, they are open minded and are trained by the best in the world.
Kgomotso Ramotsho Cert Journ (Boston) Cert Photography (Vega) is the news reporter at De Rebus.
This article was first published in De Rebus in 2019 (Jan/Feb) DR 11.
When inventories go down in value, accountants adjust the value of the inventory that is recorded on the balance sheet. Sometimes inventory goes up in value. Do accountant's ever adjust the value of inventory upwards? What are the general guidelines that accountant's follow in recording inventory value?
Answer:
Accountants do not adjust the value of inventory upwards. The general guidelines in recording inventory value are to recognize the ending inventory value at the lower of cost or market value and to ensure that transactions are recorded in accordance with the conservatism principle of generally accepted accounting principles.
Explanation:
The conservatism principle requires that all probable losses are recognized as soon as they can be reasonably estimated, while gains should be recognized only when they are fully realized. The lower of cost or market value (LCM) method states that inventory should be recorded at the lower of either the historical cost or the market value. The LCM is in line with the conservatism principle.
A 15-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon rate of 10%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices.
List Bond Equivalent Annual Effective annual
bond prices Yield to maturity Yield to maturity
a $940 % %
b $1,000 % %
c $1,040 % %
Answer:
A. Bond equivalent 10.82%
Effective annual yield to maturity of the bond 11.11%
B. Bond equivalent 10%
Effective annual yield to maturity of the bond 10.25%
C. Bond equivalent 9.49%
Effective annual yield to maturity of the bond 9.73%
Explanation:
A. Calculation to Find the bond equivalent
We would determine the yield to maturity on a semi-annual basis using Financial Calculator which is:
N = 10*2 = 30
PV = -940
PMT = [10%/2]*1000 = 50
FV = 1000
Press CPT, then I/Y, which gives us 5.41%
Bond equivalent yield to maturity=5.41% × 2
Bond equivalent yield to maturity= 10.82%
Calculation to determine the Effective Annual Yield To Maturity of the bond
Effective annual yield to maturity = (1+.0541)^2– 1
Effective annual yield to maturity = (1.0541)^2– 1
Effective annual yield to maturity =1.1111 – 1
Effective annual yield to maturity = 0.1111 *100
Effective annual yield to maturity = 11.11%
Therefore the bond equivalent and effective annual yield to maturity of the bond will be:
Bond equivalent 10.82%
Effective annual yield to maturity of the bond 11.11%
b. Calculation to determine the bond equivalent
Based on the information given the bond is selling at par which therefore means that the yield to maturity on a semi annual basis will be the same as the semi annual coupon 5%.
Bond equivalent yield to maturity =5%*2
Bond equivalent yield to maturity= 10%.
Calculation to determine Effective annual yield to maturity
Effective annual yield to maturity = (1+.05)^2– 1
Effective annual yield to maturity = (1.05)^2– 1
Effective annual yield to maturity=1.1025-1
Effective annual yield to maturity=.1025*100
Effective annual yield to maturity =10.25%
Therefore the bond equivalent and effective annual yield to maturity of the bond will be:
Bond equivalent 10%
Effective annual yield to maturity of the bond 10.25%
c.Calculation to determine the bond equivalent
N = 10*2 = 30
PV = -1,040
PMT = [10%/2]*1000 = 50
FV = 1000
Bond equivalent yield to maturity=9.49%, or 4.75% on a semi-annual basis.
Calculation to determine the Effective Annual Yield To Maturity of the bond
Effective annual yield to maturity = (1+.0475)^2– 1
Effective annual yield to maturity = (1.0475)^2– 1
Effective annual yield to maturity =1.0973– 1
Effective annual yield to maturity = 0.0973*100
Effective annual yield to maturity = 9.73%
Therefore the bond equivalent and effective annual yield to maturity of the bond will be:
Bond equivalent 9.49%
Effective annual yield to maturity of the bond 9.73%
The following information is available for the XYZ Company for the month of July:
Static Budget Actual
Units 7,000 6,650
Sales revenue $60,000 $55,715
Variable manufacturing costs $15,000 $14,250
Fixed manufacturing costs $20,000 $17,000
Variable selling & administrative expense $10,000 $10,500
Fixed selling & administrative expense $15,000 $12,000
The total sales-volume variance for operating income for the month of July would be:__________
Answer:
XYZ Company
The total sales-volume variance for operating income for the month of July would be:__________
$3,765 Favorable
Explanation:
a) Data and Calculations:
Static Budget Actual
Units 7,000 6,650
Sales revenue $60,000 $55,715
Variable manufacturing costs $15,000 $14,250
Fixed manufacturing costs $20,000 $17,000
Variable selling & administrative exp. $10,000 $10,500
Fixed selling & administrative expense $15,000 $12,000
Flexible Budget Actual
Units 6,650 6,650
Sales revenue = $57,000($60,000/7,000 * 6,650) $55,715
Variable manufacturing costs = $14,300 ($15,000/7,000 * 6,650) $14,250
Fixed manufacturing costs $20,000 $17,000
Variable selling & administrative exp. =$9,500 ($10,000/7,000 * 6,650) $10,500
Fixed selling & administrative expense $15,000 $12,000
Flexible Budget Actual Variance
Units 6,650 6,650
Sales revenue $57,000 $55,715 $1,285 U
Variable manufacturing costs $14,300 $14,250 50 F
Fixed manufacturing costs $20,000 $17,000 3,000 F
Variable selling & administrative exp. $9,500 $10,500 1,000 U
Fixed selling & administrative expense $15,000 $12,000 3,000 F
Operating income ($1,800) $1,965 $3,765 F
Nontariff barriers are: _________
a. numerical limitations on the quantity of products that a country can import
b. rules, regulations, inspections, and paperwork which make it more costly or difficult to import products
c. taxes levied on the value of imported goods
d. all of the above
Answer:
The correct answer is the option D: All of the above. T
Explanation:
To begin with, the term known as "Non-Tariff Barriers" in the field of economics and business management refers to the barriers imposed by the government to the trade of imports and exports of goods and services in a country with the main difference that they use other mechanism rather than the commonly imposition of tariffs. Therefore that this tool can refer to rules, regulations or numerical limitations and many other impositions. That is why that it consists of any obstacle to international trade.
Super-Tees Company plans to sell 12,000 T-shirts at $16 each in the coming year. Product costs include: Direct materials per T-shirt $5.75 Direct labor per T-shirt $1.25 Variable overhead per T-shirt $0.60 Total fixed factory overhead $43,000 Variable selling expense is the redemption of a coupon, which averages $0.80 per T-shirt; fixed selling and administrative expenses total $19,000.
Required:
1. Calculate the following values Round dollar amounts to the nearest cent and round ratio values to three decimal places
a. Variable product cost per unit
b. Total variable cost per unit
c. Contribution margin per unit
d. Contribution margin ratio
e. Total fixed expense for the year ).
2. Prepare a contribution-margin-based income statement for Super- Tees Company for the coming year 1f required, round your per unit answers to the nearest cent Super-Tees Company Contribution-Hargin-Based Operating Income Statement For the Coming Year Per Unt
Answer: See explanation
Explanation:
1a. Variable product cost per unit = 5.75 + 1.25 + 0.60 = 7.60
b. Total variable cost per unit = 5.75 + 1.25 + 0.60 + 0.80 = 8.40
c. Contribution margin per unit = Selling price - Total Variable cost per unit
= 16 - 8.40
= 7.60
d. Contribution margin ratio = (7.6/16) × 100 = 47.5
e. Total fixed expense for the year = 43000 + 19000 = 62000
2. Price per unit. Total
Sales 16. 192000
Less: variable cost 8.40. (100800)
Less: cont. marg per unit (62000)
Net operating Income = 29200
Ever since e-commerce started rising in prominence, the value of the retail showroom has diminished significantly. After all, consumers no longer need to visit a store to see what types of products are available for purchase. Not only does a quick search on Amazon accomplish this goal within seconds, but the site also provides helpful resources such as customer reviews and recommendations. Nevertheless, the online retail model doesn't work the same way for all products. Consumers on the whole still visit showrooms when they're looking to buy big expensive items like cars or mattresses.
Thanks to a new wave of startups, however, online retailers are beginning to break through these barriers of size and expense. While many consumers remain reluctant to purchase a car without driving it, online mattress sellers like Casper and Leesa Sleep are winning over thousands with a streamlined approach. Customers simply select the size they want, pay for it, and then wait for the mattress to arrive at their doorstep compressed into a single box. Most showrooms contain a variety of mattresses that can greatly fluctuate in price depending on what sales are happening at the moment. Customers then learn all these intricate details from assertive salespeople on the hunt for a commission.
Today's online mattress sellers cut out this rigmarole by using simplified inventory and fixed prices. But that doesn't necessarily mean these brands provide customers with the best deal possible. For instance, a king from Casper costs $950, not exactly a bargain for a foam mattress. In fact, customers could likely get a better deal if they were simply willing to do some haggling at a showroom. For Casper's customers, though, the company's appeal lies in its convenience rather than its value. There's also little risk in trying out a compressed mattress: Casper offers free shipping, 100-day guarantees and free returns on all of their products. While it remains to be seen if these upstarts can take on the $14 billion U.S. mattress industry, Casper's $100 million in sales during its first year of operation suggests that they're certainly on the right track.
Requried:
a. Intermediaries can be eliminated, but their activities cannot. Describe the activities provided by retail showrooms that manufacturers like Leesa and Casper are now providing. Specifically, what utility are the manufacturers providing?
b. Would you ever purchase a car or an expensive refrigerator direct from the manufacturer without seeing the product in person or testing the product? Explain why or why not. If not, what would you need from the manufacturer in order to purchase direct from them?
Explanation:
a. Formerly, these manufacturers have to provide storage space to display their inventory of mattresses, however, online retail sellers have taken up this activity by holding the various sizes of the available inventory, and then simply display them on photos/videos on their website.
b. No. The decision to purchase a car direct from the manufacturer without seeing the product in person or testing the product isn't the most preferred option for many, however, an expensive refrigerator could be purchased without seeing or testing it out. Usually, the following factors are considered:
Would this product match the description stated?Would the cost of return be worth it if there happens to be a problem with the product?MARIN INC. Income Statement For the Year Ended December 31, 2020
Sales revenue $425,500
Cost of goods sold 240,400
Gross profit 185,100
Expenses (including $12,000 interest and $26,000 income taxes) 75,400
Net income $109,700
Additional information:
1. Common stock outstanding January 1, 2022, was 26,300 shares, and 36,100shares were outstanding at December 31, 2022.
2. The market price of Marin stock was $14 in 2022.
3. Cash dividends of $24,000 were paid, $3,600 of which were to preferred stockholders.
Compute the following measures for 2022:
a. Earnings per share
b. Price-earnings ratio
c. Payout ratio
d. Times interest earned
Answer:
MARIN INC.
a. Earnings per share = $106,100/36,100 = $2.94
b. Price-earnings ratio = $14/$2.94 = 4.76 times
c. Payout ratio = $20,400/$106,100 = 0.19
d. Times interest earned = EBIT/Interest expense
= ($185,100 - $37,400)/$12,000
= $147,700/$12,000
= 12.31 times
Explanation:
A) Data and Calculations:
MARIN INC. Income Statement For the Year Ended December 31, 2020
Sales revenue $425,500
Cost of goods sold 240,400
Gross profit 185,100
Expenses:
Operating expenses $37,400
Interest $12,000
Income taxes $26,000
Total expenses 75,400
Net income $109,700
Preferred stock dividends 3,600
Available to common stock $106,100
Additional information
1. Outstanding common stock:
January 1, 2022 = 26,300 shares
December 31, 2022 = 36,100 shares
Additional issues = 9,800 shares
2. Market price of stock = $14
3. Cash dividends:
Preferred stock $3,600
Common stock 20,400
Total dividends paid $24,000
Other things being equal, the demand for natural gas will tend to be elastic in the short run than in the long run.
Other things being equal, the demand for natural gas will tend to be less elastic in the short run than in the long run.
What is elasticity of demand?This is the term that is used to refer to the sensitivity of demand to the prices of other goods and services.
The elasticity of demand has to do with the sensitive demand of the product to the changes in other economic factors.
Read more on elasticity of demand here:
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Property that a business uses to secure a loan is
Answer:
Business loans are usually secured with collateral, which is an asset pledged to the lender by the borrower for the life of the loan. The collateral can be seized and sold to repay the loan if the borrower defaults. Lenders use collateral to reduce the risk of losing money on the loan.
Explanation:
ECB Co. has 1.25 million shares outstanding selling at $25 per share. It plans to repurchase 97,000 shares at the market price. What will be its market capitalization after the repurchase? What will be its stock price? The market capitalization after the repurchase is million. (Round to three decimal places.)
Answer:
Market cap = 28.825 million
Stock price = $25
Explanation:
Current outstanding shares = 1,250,000
Current price per share = $25
So, ECB current market cap = 1,250,000 × $25 = $31,250,000
Repurchase shares = 97,000
So repurchase value = 97,000 × $25 = $2,425,000
Hence, Market capitalization after repurchase = current market cap - repurchase value
= $31,250,000 - $2,425,000 = 28,825,000 or 28.825 million
Stock price = $25
Revenue and expense data for Bluestem Company are as follows:
Year 2 Year 1
Administrative expenses $37,720 $20,300
Cost of goods sold 360,000 319,900
Income tax 41,000 32,200
Sales 820,000 700,000
Selling expenses 154,160 109,900
Required:
Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales.
Answer and Explanation:
The preparation of a comparitive income statement, with vertical analysis, stating each item for both years as a percent of sales is prepared below with the help of the attached spreadsheet:-
The formula that we have used is shown below:-
Gross profit percent = Gross profit / Sales revenue
Cost of goods sold percent = Cost of goods sold / Sales revenue
and in a similar way operating expenses items.
FCIA deduction consists of
What are the requirements for something to be used as money?
Expansion of trade has made the nations of the world more
0isolated
0insensitive
O interdependent
O suspicious
PLZ AWNSER ASAP NEED IT IN 30 minutes
Answer:
O interdependent
Explanation:
Expansion is an activity to expand a business characterized by creating new markets, expanding facilitation, increasing the economy and growing the business world. The purpose of expansion is to become bigger or wider. Expansion will not occur if there are no interdependents, because cooperation is needed
As seen on an income statement:
a. interest is deducted from income and increases the total taxes incurred.
b. depreciation reduces both the pretax income and the net income.
c. depreciation is shown as an expense but does not affect the taxes payable.
d. the tax rate is applied to the earnings before interest and taxes when the firm has both depreciation and interest expenses.
e. interest expense is added to earnings before interest and taxes to get pretax income.
Answer:
b. depreciation reduces both the pretax income and the net income.
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
An income statement comprises of the financial information about the income and expenses of an organization over a specific period of time.
Depreciation can be defined as the reduction of cost of a fixed asset systematically until the value of the asset becomes zero.
The Modified Accelerated Cost Recovery System (MACRS) can be defined as a depreciation system that avails business owners or companies the ability and opportunity to recover or recoup the cost basis of physical assets that have experienced deterioration over a specific period of time.
In the United States of America, the Modified Accelerated Cost Recovery System (MACRS) is used mainly for tax purposes because it gives room for faster depreciation of a physical asset in its first years or initial usage and reduces depreciation as it is being used over a long period of time.
Generally, it can be deduced from an income statement that depreciation reduces both the pretax income and the net income of a business firm or an organization.
Answer:
b. depreciation reduces both the pretax income and the net income.
Explanation:
As seen on an income statement: depreciation reduces both the pretax income and the net income.
There are three equally-sized distinct subpopulations in Utopolis: unemployed, workers, and retirees. There are four possible social states which result in different utility levels for the three subpopulations:
Social State Unemployed Workers Retirees
A 12 50 10
B 20 20 20
C 15 15 15
D 1 40 1
a. Which social states might plausibly be chosen by the government of Utopolis? And Why?
b. There is a government election in Utopolis with two candidates: a Rawlsian and a Utilitarian candidate. Each candidate promises to enact one of the social states above. If the majority of citizens elect the candidate, which social state will be enacted?
Answer:
Utopolis
a. Social states chosen by the government of Utopolis are:
Social State Unemployed Workers Retirees
A 12 50 10
D 1 40 1
The reason for choosing these social states is that the social states of A and D reduce the headache felt by the government in managing unemployment and paying pensions to retirees, unlike the social states of B and C, which have equal numbers of the distinct subpopulations.
b. The enacted social state will be D. This is the social state preferred by the majority of citizens. There is a utopian economic condition achieved with social state D unlike with other social states.
Explanation:
a) Data and Calculations:
Utility levels in Utopolis:
Social State Unemployed Workers Retirees
A 12 50 10
B 20 20 20
C 15 15 15
D 1 40 1
Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below.
End of Year Beginning of Year
Cash and cash equivalents $750 $81
Accounts receivable (net) 2,060 1,810
Inventory 880 830
Other current assets 570 429
Total current assets $4,260 $3,150
Total current liabilities $2,060 $1,610
For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million.
Required:
Compute the current ratio, current cash debt coverage, accounts receivable turnover, average collection period, inventory turnover, and days in inventory at the end of the current year.
Answer:
Nordstrom, Inc.
Current Ratio = Current assets/Current liabilities
= $4,260/ $2,060
= 2.1
Current cash debt coverage = Net Operating Cash/Current liabilities
= $1,251/$2,060
= 0.61
Accounts receivable turnover = Net Sales/Average Receivable
= $8,258/$1,935
= 4.27
Average collection period = 365/4.27
= 85.5 days
Inventory turnover = Cost of goods sold/Average inventory
= $5,328/$855
= 6.2 times
Days in inventory = 365/Inventory turnover
= 58.9 days
Explanation:
a) Data and Calculations:
End of Year Beginning of Year
Cash and cash equivalents $750 $81
Accounts receivable (net) 2,060 1,810
Inventory 880 830
Other current assets 570 429
Total current assets $4,260 $3,150
Total current liabilities $2,060 $1,610
Net credit sales = $8,258 million
Cost of goods sold = $5,328 million
Net operating cash = $1,251 million
Average receivables = $1,935 ($2,060 + $1,810)/2
Average inventory = $855 ($880 + $830)/2
Professional sales skills
how should the price quotation in your proposal be titled?
A. Investment
B. Price
C. Cost
D.Estimate
determine your targetarket
Answer:
A target market refers to a group of customers to whom a company wants to sell its products and services, and to whom it directs its marketing efforts. Consumers who make up a target market share similar characteristics including geography, buying power, demographics, and incomes.
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Britos Hyundai Sales and Service estimates the amount of uncollectible accounts using the percentage of receivables method. After aging the accounts, it is estimated that $4,500 will not be collected. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment:
1. Allowance for Doubtful Accounts has a credit balance of $710.
2. Allowance for Doubtful Accounts has a debit balance of $305.
Required:
Journalize the entries.
Answer:
Explanation:
a. Total bad debts expenses = Estimated uncollectible accounts - Credit balance in the allowance account before adjustment
= $4500 - $710
= $3,790
Date Account title Debit Credit
Dec 31 Bad Debt Expense $3,790
Allowance for Doubtful Accounts $3,790
a. Total bad debts expenses = Debit balance in the allowance account before adjustment + estimated uncollectible accounts
= $305+ $4500
= $4,805
Date Account title Debit Credit
Dec 31 Bad Debt Expense $4,805
Allowance for Doubtful Accounts $4,805