Answer and Explanation:
The classifications are as follows
1. Long-term investment in stock = B = Long term investments
2. Depreciation expense-Building = Z = Income statement
3. Prepaid rent = A = Current assets
4. Interest receivable = A = Current asset
5. Taxes payable = E = Current liabilities
6. Automobiles = C = Plant asset
7. Notes payable (due in 3 years) = F = Long term liabilities
8·Accounts payable = E = Current liabilities
9. Prepaid insurance = A = Current assets
10. Owner, Capital = G = Equity
11. Unearned services revenue = E = Current liabilities
12. Accumulated depreciation-Trucks = C = Plant asset
13. Cash = A = Current assets
14. Buildings = C = Plant asset
15. Store supplies = A = Current assets
16. Office equipment = C = Plant asset
17. Land (used in operations) = C = Plant asset
18. Repairs expense = Z = Income statement
19. Office supplies = A = Current assets
20. Current portion of long-term note payable = E = Current liabilities
A firm wishes to maintain an internal growth rate of 9 percent and a dividend payout ratio of 66 percent. The ratio of total assets to sales is constant at 1, and the profit margin is 8.1 percent. If the firm also wishes to maintain a constant debt-equity ratio, what must it be
Answer:
the constant debt-equity ratio is 2.580
Explanation:
Given:
dividend payout ratio of 66 percent= 0.66
Sustainable Growth rate of 9 percent = 0.09
profit margin is 8.1 percent= 0.081
total assets to sales is constant at 1
We need to calculate the Retention Ratio first,
which gives the percentage of a company's earnings that are not paid out in dividends but credited to retained earnings. It can be calculated using below expression,
Retention Ratio = 1 - Dividend pay-out ratio
Retention Ratio = 1 - 0.66 = 0.34
ROE i.e the return on equity which is a measure of the profitability of a business in relation to the equity can be calculated as;
Sustainable Growth rate = (ROE * Retention Ratio)/(1 - ROE*Retention Ratio)
0.09 = (ROE * 0.34/(1 - ROE*0.34)
0.09 (1 - 0.34ROE) = 0.34ROE
0.09 - 0.0306ROE = 0.34ROE
0.3094ROE = 0.09
ROE = 0.09/0.3094
ROE = 0.290 or 2.90%
debt-equity ratio can now be calculated as;
Return on Equity = Profit Margin×Total Assets to sales ratio×(1+D/E)
0.290 = 0.081*1*(1+D/E)
1 + D/E = 0.290/0.081
1 + D/E = 3.580
D/E = 3.580 - 1 = 2.580
Therefore, the constant debt-equity ratio is 2.580
The stockholders' equity of TVX Company at the beginning of the day on February 5 follows.
Common stock—$10 par value, 150,000 shares
authorized, 62, 000 shares issued and outstanding $620,000
Paid—in capital in excess of par value, common stock 423,000
Retained earnings 552,000
Total stockholders ' equity 1595,000
On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $31 per share on February 5 before the stock dividend.
Required:
Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)
Answer:
TVX Company
Stockholders Equity Section of the Balance Sheet, February 28
Common stock $632,400
Paid in capital in excess of par value, Common stock $449,040
Retained earnings $513,560
Total Stockholders Equity $1,595,000
Workings
Common Stock
= Common Stock + Dividends Declared
= 620,000 + ( 2% * 62,000 shares * $10 par value)
= 620,000 + 12,400
= $632,400
Paid in capital in excess of par value, Common stock
Dividends were declared based on current market value of $31 not par value of $10 so the differnce will be catered for here.
= Balance + Dividends Declared
= 423,000 + (2% * 62,000 * $21 which is differnce between par value and market value)
= 423,000 + 26,040
= $449,040
Retained earnings
= Retained Earnings - Dividends distributed
= 552,000 - (2% * 62,000 * $31)
= 552,000 - $38,440
= $513,560
Elliott Company produces large quantities of a standardized product. The following information is available for its production activities for March. Units Costs Beginning work in process inventory 2,000 Beginning work in process inventory Started 20,000 Direct materials $ 2,500 Ending work in process inventory 5,000 Conversion 6,360 $ 8,860 Status of ending work in process inventory Direct materials added 168,000 Materials—Percent complete 100 % Direct labor added 199,850 Conversion—Percent complete 35 % Overhead applied (140% of direct labor) 279,790 Total costs to account for $ 656,500 Ending work in process inventory $ 84,110 Prepare a process cost summary report for this company showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. Use the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
Answer: kindly check attached picture
Explanation:
Production activities for MARCH:
Beginning work in process inventory = 2000
Units started in March = 20,000
Therefore, total units to account for :
(2,000 + 20,000) units = 22,000 units
Total units transferred out :
Total units to account for - Ending work in process:
(22,000 - 5,000) units = 17,000 units
Check attached picture for further explanation
" By adding new product lines like MP3 and X-Box beyond their core business of computer operating systems, Microsoft primarily benefits by: "
Answer:
creating diversification and reducing risk
Explanation:
By adding these new product lines Microsoft primarily benefits by creating diversification and reducing risk. Adding these new products allows Microsoft to enter new markets in which they can implement different strategies in order to dominate those markets with their new products and hopefully profit largely from them. This in term also provides a safety net in which, if one product fails they still have other products profiting that can make up for the loss.
On January 1 , a company borrowed $70000 cash by signing a 9% installment note that is to be repaid with 4 annual-end payment of $21607. While the amount borrowed equals $70000 , the total payment on this note amount to $86428. Explain
Answer:
86,428 - 70,000 = $16,428
This difference of $16,428 refers to the 9% interest that was paid over the 4 years. However, the 9% is only charged on the amount that is owed whch reduces every year by a principal repayment which also comes out of the $21,607.
Year 1
Payment = $21,607
Interest = 9% * 70,000 = $6,300.
Principal repayment = 21,607 - 6,300= $15,307
Amount left to be paid = 70,000 - 15,307 = $54,693
Year 2
Payment = $21,607
Interest = 9% * 54,693 = $4,922.37
Amount left to be paid = 54,693 - (21,607 - 4,922.37) = $38,008.37
Year 3
Payment = $21,607
Interest = 9% * 38,008.37 = $3,420.75
Amount left to be paid = 38,008.37 - (21,607 - 3,420.75) = $19,822.12
Year 4
Payment = $21,607
Interest = 9% * 19,822.12 = $1,783.99
Amount left to be paid = 19,822.12 - (21,607 - 1,783.99) = $0
Interest Year 1 - 4 = 6,300 + 4,922.37 + 3,420.75 + 1,783.99
= $16,427.11 (difference due to rounding errors)
You need to make 9
servings of roast beef gravy.
Each serving takes 1 quart
of brown stock.
How many quarts of brown
stock do you have to make?
Answer:
Answer:
9/4 = 2 1/4 = 2.25
Explanation:
1 serving = 1/4 brown stock
9 servings = x brown stock
Do cross mutliplication and divide:
(9 x 1/4) ÷1
9/4 = 2 1/4 = 2.25
Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.
A. True
B. False
Answer:
False
Explanation:
Answer:
False
Explanation:
financing activities are business transactions that are used to fund either company operations or the business expansion expansions.
Some examples of financial activities includes:
1. Borrowing and paying back short-term loans.
2. Borrowing and paying back long-term loans.
receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks are not financing activities.
Home equity line interest. Sean and Amy Anderson have a home with an appraised value of $180,000 and a mortgage balance of only $90,000. Given that an S&L is willing to lend money at a loan-to-value ratio of 75 percent, how big a home equity credit line can Sean and Amy obtain? How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000?
Answer:
$135,000
$75,000
Explanation:
Home value = $180,000
Loan to Value ratio = 75%
Formula: Maximum loan amount = Home value x loan to value ratio
Maximum loan amount = $180,000 x 75%
Maximum loan amount = $135,000
If the value of house is $100,000 then,
$100,000 x 75% = $75,000
$75,000 would qualify as Tax deductible interest
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable$363,000debit Allowance for uncollectible accounts 580debit Net Sales 808,000credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared
Answer:
$4,848 will be the amount that should be debited to Bad debts expense when the adjusting entry is being prepared for the year end.
Explanation:
Since the company uses percentage of sales method for calculating bad debt, it therefore means that the bad debt expense for the year will not be charged from the opening balance of allowance for uncollectible accounts but will be charged as Net credit sales × percentage of uncollectible from credit sales.
Therefore, bad debt for the period is charged as Net credit sales × Percentage of uncollectible from credit sales
= $808,000 × 0.6%
= $4,848
Therefore, the adjusting entry for bad debt expenses at year end is;
Bad debt expense Dr $4,848
Allowance for uncollectible accounts Cr $4,848
Last year Baron Enterprises had $350 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity last year. In millions, by how much could Baron's sales increase before it is required to increase its fixed assets? a. $170.09 b. $179.04 c. $197.88 d. $188.46 e. $207.78
Answer:
Increase in sales= 188.46 million
Explanation:
Giving the following information:
Sales= 350 million
Fixed assests= 270 million
Used capacity= 65%
We need to determine the increase in sales that would occupy the entire capacity.
If 350 is 65% then:
Full capacity= (100*350)/65= 538.46 million
Now, the increase in sales:
Increase in sales= 538.46 - 350= 188.46 million
PLEASE HELP ASAP!
Which example is an investment commodity? (Select the best answer.)
steel
shares in a company
microfinancing
a rare painting
Which option allows you to pool your money and invest in a portfolio with other investors? (Select the best answer.)
a 529 plan
an IRA account
a mutual fund
a 401(k) plan
Which piece of information is typically included in a stock listing? (Select the best answer.)
the predicted price of the stock over the next year
the company's SEC registration credentials
the number of shares of stock sold in a previous day
the number of shares of stock sold in the previous year
Which type of investment income happens when an investor sells ownership in an equity investment that's gained value? (Select the best answer.)
capital gains
dividends
interest
equity gains
Answer:
1. Steel
2. A Mutual Fund
3. The number of shares of stock sold in a previous day
4. Capital Gains
Explanation:
1. Investment commodities are investments in raw materials or primary goods that are still to be processed such as Agricultural produce and precious metals. Steel falls under this category.
2. A Mutual Fund works by pooling the resources and monies of various people and then investing it in various companies as a single portfolio. This way even though your funds might be little, you can still be able to diversify investments and make a good return.
3. When stock is listed for sale on a particular day, its trading figures for the previous day are listed as well.
4. Capital gain is a way to gain a return when the value of your investment has increased. When you sell that asset at the new price which is higher than the price you bought it, you make a capital gain on the transaction. For instance, R. Taylor bought stock for $100 in 2005 and it is now selling at $900 and Taylor sells it, Taylor now has a capital gain of $800.
6. ABC Company announced today that it will begin paying annual dividends next year. The first dividend will be $0.10 a share. The following dividends will be $0.20, $0.30, $0.40, and $0.50 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 2.0 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 8.0 percent
Answer:
The amount willing to pay to buy one share is $6.92.
Explanation:
The announcement by company to pay annual dividend = $0.10
2nd year divident amount = $0.20
3rd year divident amount = $0.30
4th year divident amount = $0.40
5th-year divident amount = $0.50
The increase in dividend = 2 percent.
The desired rate of return = 8%
Value after year 5 = (D5 × Growth rate) / (Required rate-Growth rate)
=(0.5 × 1.02) / (0.08-0.02)
=8.5
Therefore, the current value = Future dividend and value × Present value of discounting factor(rate%,time period)
=0.1/1.08 + 0.2/1.08^2 + 0.3/1.08^3 + 0.4/1.08^4 + 0.5/1.08^5 + 8.5/1.08^5
=$6.92.
Abburi Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $58,500 and if direct materials are $29,200, the manufacturing overhead is:
Answer:
$71,500
Explanation:
The computation of manufacturing overhead is shown below:-
We assume conversion cost = x
Conversion cost = Labor cost + manufacturing overhead
x = $58,500 + 0.55x
x = $58,500 ÷ 0.45
= $130,000
Now the manufacturing overhead is
= Conversion cost × maufacturing overhead percentage
= $130,000 × 55%
= $71,500
We simply applied the above formula
Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions. External Transaction Accounts Debit Credit 1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500 2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100 3. Purchase office supplies on account, $110. Supplies 110 Cash 110 4. Pay $410 for next month's rent. Rent Expense 410 Cash 410 5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250
Assess wether the junior accountant correctly proposes how to record each transaction.If incorrect provide the correction.
Answer:
Scarlet Knight Corporation
Posting of transactions:
1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500
Wrong. Correct Posting: Cash 5,500 Common Stock 5,500
2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100
Correct.
3. Purchase office supplies on account, $110. Supplies 110 Cash 110
Wrong. Correct Posting : Supplies 110 Accounts Payable 110
4. Pay $410 for next month's rent. Rent Expense 410 Cash 410
Wrong. Correct Posting: Rent Prepaid 410 Cash 410
5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250
Wrong. Correct Posting: Equipment 1,250 Cash 1,250
Explanation:
1. Owners invest $5,500 in the company and receive common stock. Cash is increased and Common Stock increased by $5,500.
2. 2. Receive cash of $2,100 for services provided in the current period.
Cash is increased and Service Revenue increased by the same amount.
3. Purchase office supplies on account, $110.
No cash payment is involved with this transaction since it was on account. The accounts involved and which increased by $110 are Supplies and Accounts Payable.
4. Pay $410 for next month's rent. The amount is for next month. As such no Rent Expense account is involved. Instead, the accounts involved are Rent Prepaid and cash. While Rent Prepaid increases, Cash is reduced.
5. Purchase office equipment with cash of $1,250. Equipment received value and will increase by $1,250 while Cash gave value and will reduced by $1,250 and not vice versa.
Bastille Corporation prepares monthly cash budgets.
Here are relevant operating budgets for 2017:
January February
Sales $360,000 $400,000
Purchases 120,000 130,000
Salaries 84,000 81,000
Administration expenses 72,000 75,000
Selling expenses 79,000 88,000
All sales and purchases are on account.
Budgeted collections and disbursement data are given below.
All other expenses are paid in the month incurred.
Administrative expenses include $1,000 of depreciation per month.
Other data:
1. Collections from customers: January $326,000; February $378,000.
2. Payments for purchases: January $110,000; February $135,000.
3. Other receipts: January - collection of December 31, 2016 notes receivable $15,000; February - proceeds from sale of securities $4,000.
4. Other disbursements: February $10,000 cash dividend.
The company's cash balance on January 1, 2017 is expected to be $46,000. The company wants to maintain a minimum cash balance of $40,000.
Required:
Prepare a cash budget for January and February.
Answer and Explanation:
The Preparation of the cash budget for January and February is prepared below:-
Bastille Corporation
Cash budget
for the month of January and February
Particulars January February
Beginning cash balance $46,000 $43,000
Add: Receipts
Customer collection $326,000 $378,000
Notes receivable collection $15,000 $0
Sale of marketable securities 0 $4,000
Total receipts $341,000 $382,000
Total cash available $387,000 $425,000
Less:
Cash payments during the
year
Purchases $110,000 $135,000
Salaries $84,000 $81,000
Administrative expenses $71,000 $74,000
Selling expenses $79,000 $88,000
Dividends 0 $10,000
Disbursement total $344,000 $388,000
Excess of cash
available $43,000 $37,000
Financing
Borrowings 0 $3,000
Repayments 0
Ending cash balance $43,000 $40,000
Note: February beginning balance is the balance of ending cash balance.
You can determine a company’s cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets.
Which of the following is true for the statement of cash flows?
a. It reflects cash generated and used during the reporting period.
b. It reflects revenues when earned.
Answer: a. It reflects cash generated and used during the reporting period
Explanation:
The Cash flow statement is very important and is useful to various stakeholders in a company with the most important being the Company Management itself and Creditors.
Management are able to use the Cash flow statement to see how much actual cash was spent in the year as well as how much was used. This is important because the Income statement contains entries that might show revenue that have not being received or expenses such as depreciation that did not impact the actual cash the company has. The Cash flow statement fixes this by showing those actual figures thus enabling the company to plan better.
It is also useful to Creditors so that they see if a company is able to pay them for the period.
ervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% factoring fee. What entry should Jervis make to record the transaction?
Answer:
Debit Cash account $71,250
Debit Factoring charge $3,750
Credit Accounts receivable $75,000
Explanation:
Factoring accounts receivable involves the sale of the account receivable to another party such that the debt is now payable to that party. This is usually done to ease liquidity and at a charge.
When receivables are factored,
Debit Cash account
Debit Factoring charge
Credit Accounts receivable
Charge on factoring = 5/100 × $75,000
= $3,750
Amount to be received = $75,000 - $3,750
= $71,250
Squirrel Tree Services reports the following amounts on December 31.
Assets Liabilities and Stockholders’ Equity
Cash $ 8,300 Accounts payable $ 11,500
Supplies 2,400 Salaries payable 4,100
Prepaid insurance 4,100 Notes payable 26,000
Building 78,000 Common stock 40,000
Retained earnings 11,200
In addition, the company reported the following cash flows.
Cash Inflows Cash Outflows
Customers $ 96,000 Employee salaries $ 40,000
Borrow from the bank (note) 38,000 Supplies 22,000
Sale of investments 35,800 Dividends 15,500
Purchase building 98,000
Required:
1. Prepare a balance sheet.
2. Prepare a statement of cash flows. (Cash outflows and decreases in cash should be indicated by a minus sign.)
1. The preparation of the balance sheet is shown below.
2. The preparation of the cash flow statement is shown below.
1. Balance sheet:Squirrel Tree Services
Balance Sheet
For the year ended 31st December
Assets Amount Liabilities Amount
Cash $8,300 Accounts payable $11,500
Supplies $2,400 Salary payable $4,100
Prepaid insurance $4,100 Notes payable $26,000
Building $78,000
Total liabilities $41,600
Common stock $40,000
Retained earning $11,200
Total stockholder
equity $51,200
Total liabilities and
Total assets $92,800 stockholder equity $92,800
B. Cash flow statement:
Squirrel Tree Services
Cash flow
For the year ended 31st December
Particulars Amount
Cash flow from operating activities
Cash inflow from customers $96,000
Cash outflow for salaries ($40,000)
Cash outflow for supplies ($22,000)
Net cash flow from operating activities $34,000
Cash flow from investing activities
Sale of investment $35,800
Purchase of building ($98,000)
Net cash flow from investing activities ($62,200)
Cash flow from financing activities
Borrow from bank $38,000
Dividends ($15,500)
Net cash flow financing activities $22,500
Net increase in cash ($5,700)
Beginning cash of the year $15,200
Ending cash of the year $9,500
Working note
we deduct the cash inflow from cash outflow and add cash to reach the beginning cash of the year.
Learn more about the balance sheet here: https://brainly.com/question/24531985
Deborah currently earns a____________ wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.40 per gallon; in this case, Deborah's_______________ wage, in terms of the amount of milk she can buy with her paycheck, is______________ gallons of milk per hour.
Answer:
Deborah currently earns a_____hourly_______ wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.40 per gallon; in this case, Deborah's______hourly_________ wage, in terms of the amount of milk she can buy with her paycheck, is______5________ gallons of milk per hour.
Explanation:
The wage is calculated on hourly basis per day, so Deborah currently earns a hourly wage. Unlike a salary, wage is paid per day, or per week.
If milk costs $2.40 per gallon, and
Deborah earns $12.00 per hour, then...
Deborah's hourly wage in terms of the amount of milk she can buy is
==> $12.00 ÷ $2.40 = 5 gallons of milk per hour.
What is the purpose of internal controls? Managers utilize internal controls as a basis of employee performance reviews. Internal controls are used by managers as a way to reduce outstanding customer balances. Companies use strong internal controls to guarantee that loss is eliminated. To help managers know if the business is receiving the assets and services it has paid for.
Answer:
Companies use strong internal controls to guarantee that loss is eliminated.
Explanation:
Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.
The purpose of internal controls is that companies use strong internal controls to guarantee that loss is eliminated as there's an accurate and reliable accounting system.
An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.
Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.
Answer: To help managers know if the business is receiving the assets and services it has paid for.
Explanation:
Which of the following statements best describes how a change in a firm’s stock price would affect a stock’s capital gains yield? The capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price. The capital gains yield on a stock that the investor already owns has an inverse relationship with the firm’s expected future stock price.
Answer: The capital gains yield on a stock that the investor already owns has a direct relationship with the firm’s expected future stock price.
Explanation:
The Capital Gains on a security refers to the increase in the price of the security from the cost that it was bought at. The Yield can therefore be calculated by dividing the difference between the Security Price now and the Security Price at cost by the Security Price at Cost.
If the price is higher than the cost, that is a Capital Gain. The reverse is a loss.
Therefore, a Company's future stock price is directly related to the Capital Gains Yield of an investor who is already holding the stock. If the future price increases, the Capital Gains Yield on that stock will go up. The reverse is true.
On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semi annually on June 30 and December 31 each year.
Required: Assuming the market interest rate on the issue date is 7%, the bonds will issue at $600,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.
Answer:
When the bonds are issued on January 1, 2021
Investment in Bonds $600,000 (debit)
Cash $600,000 (credit)
When the first interest accrues - June 30, 2021
Investment in Bonds $21,000 (debit)
Interest Income $21,000 (credit)
When the first interest accrues - December 31, 2021
Investment in Bonds $21,000 (debit)
Interest Income $21,000 (credit)
Explanation:
Construct the bond amortization schedule using the following parameters extracted from the question.
Pv = - $600,000
Pmt = ($600,000 × 7%) / 2 = $21,000
P/yr = 2
N = 10 × 2 = 20
Fv = $600,000
YTM = 7 %
Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $320,000 $300,000 Income before income tax expense 3,200,000 3,600,000
Determine the number of times interest charges are earned current year and the prior year.
Answer:
Current year=11 times
Prior year=13 times
Explanation:
Calculation for Determining the number of times interest charges are earned current year and the prior year
Using this formula
Times interest earned ratio= Income before Tax expense + Interest expense/Interest expense
Calculation for CURRENT YEAR
Current year =($3,200,000+$320,000)/$320,000
Current year =$3,520,000/$320,000
Current year=11 times
Calculation for PRIOR YEAR
Prior year=($3,600,000+$300,000)/$300,000
Prior year=$3,900,000/$300,000
Prior year=13 times
Therefore the number of times interest charges that are earned in current year will be 11 times and prior year will be 13 times .
g on january 1 playa company acquires 90 percent ownership in seaside corporation for 180,000 the fair value of noncontrolling interest what will be the amount of consolidated net assets that would be reported
The question is incomplete, the complete question is:
On January 1, Playa Company acquires 90 percent ownership in Seaside Corporation for $180,000. The fair value of the noncontrolling interest at that time is determined to be $20,000. Seaside reports net assets with a book value of $200,000 and fair value of $200,000. Playa Company reports net assets with a book value of $480,000 and a fair value of $525,000 at that time, excluding its investment in Seaside. What will be the amount of consolidated net assets that would be reported immediately after the combination?
Answer:
$680,000
Explanation:
Since Playa Company owns 90% of Seaside Corporation, it is considered Seaside's parent company and it must include all of Seaside's assets when it presents its consolidated balance sheet.
Total net assets reported = $480,000 (Playa's net assets at book value) + $200,000 (Seaside's net assets) = $680,000
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts.
Cash $ 11,360 Cash dividends $ 2,000
Accounts receivable 14,000 Consulting revenue 14,000
Office supplies 3,250 Rent expense 3,550
Land 46,000 Salaries expense 7,000
Office equipment 18,000 Telephone expense 760
Accounts payable 8,500 Miscellaneous expenses 580
Common Stock 84,000
Preparing a statement of cash flows LO P2 Also assume the following:
The owner’s initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock. The company’s $18,000 equipment purchase is paid in cash. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 in employee salaries yet to be paid. The company’s rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $14,000 consulting fees earned. Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
Answer:
Required:
Prepare an October 31 statement of cash flows for Ernst Consulting.
________________________________
ERNST CONSULTING
Income Statement
For month ended October 31
Revenues:
Consulting fees $14,000
Total revenue: $14,000
Expenses:
Salary expense: 7,000
Rent expense: 3,550
Telephone expense: 760
Miscellaneous expenses: 580
Total expenses: 11,890
Net income: 2,110 (14,000 - 11890)
_____________________________
_______________________________________
ERNST CONSULTING
Statement of Retained Earnings
As of October 31
Retained earnings Oct, 1: $0
Add: Net income $2,110
$2,110
Less: Dividends - $2,000
Retained earnings October 31: $110(2,110 - 2,000)
________________________________
Where can a food worker wash his hands?
O a. A mop sink
O b. A handwashing sink
O c. A food preparation sink
O d. A three-compartment sink
Answer:
b. A handwashing sink
Explanation:
Food workers with dirty hands are one of the easiest ways to increase the spread of food borne diseases in a country.
Hence, the most effective step to take as a restaurant owner to mitigate the spread of any food related diseases, bacteria or food contamination within the kitchen where the food are being prepared, is to ensure a handwashing sink is installed as well as having a continuously running water system with disinfectants and antiseptic soap placed on the handwashing sink. Therefore, this would simply help food workers to wash their hands as at every given opportunity or when deemed necessary.
According to the Food Drugs and Administration (FDA) code, it is very important that restaurant owners install at least a handwashing sink at the entrance of the kitchen where food are been prepared or inside the kitchen area itself.
Additionally, the FDA prohibits food workers from washing their hands in mop sink, food preparation sink, three-compartment sink, sinks etc.
In a nutshell, a food worker can wash his hands in a handwashing sink so as to avoid contamination of the food being prepared.
A food worker can wash his hands in a handwashing sink. One of the simplest ways to accelerate the spread of foodborne illnesses in a nation is for food workers to have unclean hands. Thus, option C is correct.
Therefore, the best action a restaurant owner can take to prevent the spread of any food-related illnesses, bacteria, or food contamination in the kitchen where the food is being prepared is to make sure a handwashing sink is installed, along with a continuously running water system, disinfectants, and antiseptic soap placed on the handwashing sink.
Therefore, this would only assist food service employees in washing their hands as possible or as needed. The Food Drugs and Administration (FDA) rule mandates that restaurant operators install a handwashing sink at the very least.
Therefore, option C is the ideal selection.
Learn more about handwashing sinks here:
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suppose that the manager of a firm operating in a perfectly competitive market average variable cost reaches its minimum value at
Complete Question:
Suppose that the manager of a firm operating in a perfectly competitive market has estimated the average variable cost function to be:
AVC = 4.0 - 0.0024Q + 0.000006Q^2 Fixed costs are $500.
Requirement:
Average variable cost reaches its minimum value at___ units of output, and the minimum value of average variable cost is $___
Answer:
Average variable cost reaches its minimum value at 200 units of output, and the minimum value of average variable cost is $3.76.
Explanation:
To find the Average Variable Cost we will have to calculate quantity and for that sake we will first of all find the point of intersection of AVC and MC to find the Quantity "Q".
So
AVC * Quantity = Total Variable Cost + Total Fixed Cost
Here
AVC = 4.0 - 0.0024Q + 0.000006Q^2
Fixed costs are $500
Total Variable Cost is TVC
Quantity is Q here
By putting values, we have:
(4.0 - 0.0024Q + 0.000006Q^2) * Q = TVC + 500
4Q - .0024Q^2 + .000006Q^3 = TVC + 500
By rearranging the above formula, we have:
TVC = 4Q - .0024Q^2 + .000006Q^3 - 500
By applying derivation rules, we have:
dTC/dQ = 4 - 0.0048Q + 0.000018Q^2
Now this equation is Marginal cost equation.
At the point of intersection of AVC and MC, both equations will equal to each other and thus we can find Q.
Mathematically,
4 - 0.0024Q + 0.000006Q^2 = 4 - .0048Q + .000018Q2
Cancelling 4 on both sides, and netting off the equation, we have:
0.0024Q = .000012Q2
1 = .000012Q2 / 0.0024Q
1 = 0.005Q
Q = 1/ 0.005 = 200 Units
By putting value of Q in AVC equation given above, we have:
AVC = 4 - 0.0024*200 + 0.000006*(200)^2
AVC = 4 - 0.48 + 0.24 = $3.76
Which of the following products is most likely to be produced in a process operations system?
A. Airplanes
B. Cereal Bridges
C. Designer bridal gowns
D. Custom cabinets
Answer:
Cereal
Explanation:
Process operations system which is also known as either process manufacturing or process production can be defined as the way of producing a product in mass, by making use of mass production method and this product are often produce in a continuous flow.
Therefore CEREAL is the products that is most likely to be produced in a process operations system because the production of Cereal is mostly carried out or produce in a process operations system.
Using the post-closing trial balance, calculate the total assets, liabilities, and equity, and enter those amounts in the basic accounting equation.
SMART TOUCH LEARNING
Post-Closing Trial Balance December 31, 2016
Balance
Account Title Debit Credit
Cash 32900
Accounts Receivable 6300
Office Supplies 400
Prepaid Insurance 10900
Prepaid Rent 10,900
Furniture 38,700
Accumulated Depreciation-- 13100
Furniture Accounts Payable 17500
Salaries Payable 2600
Utilities Payable 1300
Interest Payable 1700
Unearned Revenue 33200
Common Stock 8400
Retained Earnings 22300
Total 1001,00 100100
Answer:
Assets= Liabilities + Owner's Equity
87,000= 56,300 + 30,700
87,000= 87000
Explanation:
SMART TOUCH LEARNING
Balance Sheet
Cash 32900
Accounts Receivable 6300
Office Supplies 400
Prepaid Insurance 10900
Prepaid Rent 10,900
Furniture 38,700
Accumulated Depreciation-- 13100
Total Assets $ 87,000
Furniture Accounts Payable 17500
Salaries Payable 2600
Utilities Payable 1300
Interest Payable 1700
Unearned Revenue 33200
Total Liabilities $ 56,300
Common Stock 8400
Retained Earnings 22300
Owner's Equity / Retained Earnings $30,700
Total Liabilities and Owner's Equity $ 87,000
The accounting equation is
Assets= Liabilities + Owner's Equity
87,000= 56,300 + 30,700
87,000= 87000
32900+ 6300+400 + 10900+ 10900+25600 = 17500 + 2600 + 1300 + 1700 + 33200 + 8400 22300
The total of Assets of a company are always equal to the total Liabilities and Owner's Equity.
Adding the assets we get $ 87,000 which is the same as the total of Liabilities and Owner's Equity.
YellowCard Company manufactures accessories for iPods. It had the following selected transactions during 2017. (Note: For any part of this problem requiring an interest or discount rate, use 10%.)
1. YellowCard provides a 2-year warranty on its docking stations, which it began selling in 2017. During 2017, YellowCard spent $6,000 servicing warranty claims. At year-end, YellowCard estimates that an additional $45,000 will be spent in the future to service warranties related to 2017 sales.
2. YellowCard has a $200,000 loan outstanding from First Trust Corp. The loan is set to mature on February 28, 2018. For several years, First Trust has agreed to extend the loan, as long as YellowCard makes all its quarterly interest payments (interest is due on the last days of each February, May, August, and November) and maintains an acid-test ratio (also called "quick ratio") of at least 1.25. First Trust has provided YellowCard a "commitment letter" indicating that First Trust will extend the loan another 12 months, providing YellowCard makes the interest payment due on March 31.
3. During 2016, YellowCard constructed a small manufacturing facility specifically to manufacture one particular accessory. YellowCard paid the construction contractor $5,000,000 cash (which was the total contract price) and placed the facility into service on January 1, 2017. Because of technological change, YellowCard anticipates that the manufacturing facility will be useful for no more than 10 years. The local government where the facility is located required that, at the end of the 10-year period, YellowCard remediate the facility so that it can be used as a community center. YellowCard estimates the cost of remediation to be $500,000.
Prepare all 2017 journal entries relating to YellowCard’s warranties.
Prepare all 2017 journal entries relating to YellowCard’s loan from First Trust Corp
Prepare all 2017 journal entries relating to the new manufacturing facility YellowCard opened on January 1, 2017
Answer:
warrant expense 51,000 debit
cash 6,000 credit
warranty liability 45,000 credit
--to record warrant-related accounts--
interest payable 16,667 debit
interest expense 3,333 debit
cash 20,000 credit
--to record interest expense for the loan and installment--
Manufacturing Facilities 5,192,772 debit
Cash 5,000,000 credit
Restoration Liability 192,772 credit
-- to record the payment to contractor--
Explanation:
Warranty: the additional expected expense are considered warranty laibility
Loan: we previously recorded accrued interest from March 1st to Dec 31th
That is: 200,000 x 10% x 10/12 months = 16,667 payable
At February 28th we recognize the last two month of interest
200,000 x 10% x 2/12 months = 3,333 expense
in total we have 16,667 + 3,333 = 20,000 cash outlay
Facility: the asset should add to all the cost necessary to acquire it:
As the conversion into community center is mandatory it is part of the cost:
present value of the 500,000 in ten years:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity $500,000.00
time 10.00
rate 0.10000
[tex]\frac{500000}{(1 + 0.1)^{10} } = PV[/tex]
PV 192,771.6447
Total cost:
5,000,000 cashg + 192,772 liability = 5,192,772