Answer:
the cost of goods sold is $1,500
Explanation:
The computation of the cost of goods sold is
= Opening inventory + purchase - ending inventory
= $0 + 200 × $12 - (200 × $12 - 75 × $20)
= $ + $2,400 - ($2,400 - $1,500)
= $2,400 - $900
= $1,500
hence, the cost of goods sold is $1,500
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Speicher sells sports shoes and formal shoes. Sports shoes sell for $110 each and cost $50 in variable expenses to make. Formal shoes sell for $220 and cost $100 in variable expenses to make. Speicher’s fixed expenses are $50,000. If 35% of his revenues are from sports shoes, what is Speicher’s weighted average contribution margin ratio? Provide your answer in decimal form (i.e. 65.2% = 0.652) and to three decimal places. Do not round intermediary calculations.
Answer:
weighted contribution margin ratio = 0.545
Explanation:
contribution margin of sport shoes = $110 - $50 = $60
contribution margin ratio of sport shoes = $60 / $110 = 0.545454
contribution margin of formal shoes = $220 - $100 = $120
contribution margin ratio of sport shoes = $120 / $220 = 0.545454
35% of total revenues come from sport shoes
weighted contribution margin ratio (it is the same for both products) = 0.545454 = 0.545
B. Panuto: Isulat sa patlang kung ano ang tinutukoy sa pangungusap.
1. Ang tawag sa taong nagnenegosyo.
2. Ang panimulang salapi na ginagamit sa
pagnenegosyo.
3. Ang isang entrepreneur ay dapat magkaroon nito
upang ang produkto o serbisyo ay kumita ng
maganda
4. Alamin ang pagtatayuan ng negosyo.
5. Mahalaga ito upang maihatid at makilala ang
bagong produkto sa pamilihan.
Explanation:
1.negosyante.
2.kapital.
3.ng sapat na kaalaman sa pang negosyo.
4.inquiry
5.flayears
Yoshi Co.'s 12/31/2020 inventory on a FIFO basis was $980,000. The following information is available: Estimated selling price is $1,020,000; Estimated cost of disposal is $40,000; Normal profit margin is $120,000; and Current replacement cost is $900,000. At 12/31/2020, assuming Yoshi uses the loss method, what amount of loss should Yoshi record from applying LCM
Answer:
Yoshi Co.
The amount of loss that Yoshi Co. should record from applying LCM (the lower of Cost or Market price) is:
$40,000
Explanation:
a) Data and Calculations:
FIFO inventory on 12/31/2020 = $980,000
Current replacement cost = $900,000
Net realizable value = $980,000 ($1,020,000 - $40,000)
Normal profit margin = $120,000
Loss to be recognized based on current replacement cost = FIFO purchase cost minus Current replacement cost
= $80,000 ($980,000 - $900,000)
b) Under the US GAAP (generally accepted accounting principles) of prudence and conservatism, the loss of $80,000 must be recognized in the current period, since the inventory will be booked at $900,000, its current replacement cost, which is lower than the FIFO purchase cost of $980,000.
is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 5 percent? (Click to select) Requirement 2: (a) If the discount rate is 23 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 23 percent?
Answer and Explanation:
1A. For investment X, given 6% discount rate, 6700 PMT, N= 9 years
Present value of investment X= 6700* PVIF using 6%, 9 years
= $45751.34
For investment Y, given 6% discount rate, 9200 PMT, N= 5 years
Present value of investment Y =9200*PVIF using 6%, 9 years
=$38753.75
1B. Investment X from the above has higher present value
2A. For investment X, given 22% discount rate, 6700 PMT, N = 9 years
Present value of investment X
=6700*PVIF using 22% ,9 years
= $25368.11
For investment Y, given 22% discount rate, 9200 PMT, N = 5 years
Present value of investment X
=9200*PVIF using 22% ,N = 5 years
= $26345.49
2B. Investment Y from the above has higher present value.
The average price for regular gasoline at U.S. pumps fell almost 4 cents in March to $2.50 a gallon. The price of crude oil dropped to $43.46 per barrel on March 17, the lowest since March 2009.
Answer: C. lower the cost of producing gasoline and increase the supply of gasoline
Explanation:
Gasoline is derived from the distillation of crude oil which means that Crude oil is the main raw material in the production of gasoline. This means that if crude oil sees a reduction in price, input costs for gasoline will decrease as well.
Producers of gasoline will take advantage of this to buy more crude oil and therefore process and make more gasoline which will increase the supply of gasoline in the market and reduce its price.
Relay Corporation manufactures batons. Relay can manufacture 300,000 batons a year at a variable cost of$750,000 and a fixed cost of $450,000. Based on Relay's predictions, 240,000 batons will be sold at the regular price of $5.00 each. In addition, a special order was placed for 60,000 batons to be sold at a 40% discount off the regular price. Required: By what amount would income before income taxes be increased or decreased as a result of the special order
Answer:
The total rise in income is $30,000
Explanation:
The computation is shown below:
Sale price 3 {5 × (1 - 0.40)
Less: Incremental cost 2.5 ($750,000 ÷ 300,000)
Increase in income per unit 0.50
Divide by Total units 60,000
Total increase in income $30,000
Hence, the total rise in income is $30,000 and the same is to be considered
The total rise in income before tax is $30,000 as a result of a special offer when the Relay Corporation manufactures batons.
What is income?Income is defined as the consumption and saving opportunity achieved by a commodity within a nominal time structure, which is commonly represented in monetary words. Income is challenging to describe conceptually, and the explanation may be further across areas.
Computation of change in income:
According to the given information,
Regular price = $5.
Discount Rate=40%
Then sales price would be:
[tex]\text{Sale Price}= \text{Regular Price}(1- \text{Discount Rate})\\\\\text{Sale Price}=\$5 \text (1 - 0.40)\\\\\text{Sale Price}= \$3[/tex]
Then the incremental cost is:
[tex]\text{Incremental Cost}=\dfrac{ \text{Variable Cost}}{\text{Units Produced}}\\\\ \text{Incremental Cost}=\dfrac{\$750,000}{\$300,000}\\\\ \text{Incremental Cost}=2.5[/tex]
Increase in income per unit:
[tex]\text{Increase In Income}=\text{Sales Price}- \text{Incremental Cost}\\\\\text{Increase In Income}=\$3-\$2.5\\\\\text{Increase In Income}=0.50[/tex]
Therefore, the increase in income is :
[tex]=\text{Per unit Increase In Income}\times\text{Total Units}\\\\=0.50\times60,000\\\\=\$30,000[/tex]
Learn more about income, refer to:
https://brainly.com/question/17961582
If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be: Multiple Choice Assets increase $4,500 and liabilities decrease $4,500. One asset increases $4,500 and another asset decreases $4,500. Equity decreases $4,500 and liabilities increase $4,500. Equity increases $4,500 and liabilities decrease $4,500. Assets increase $4,500 and liabilities increase $4,500.
Answer: Assets increase $4,500 and liabilities increase $4,500.
Explanation:
An asset are the properties which a business or an organization owns. An asset possess an economic value.
Since the equipment purchased is an asset, this will lead to an increase of assets by $4500 and since it was bought on credit and hasn't been paid for, liabilities will also increase by $4500.
On April 1, 2020, the City of Southern Ponds issued $5,000,000 in 4% general obligation, tax supported bonds at 101 for the purpose of constructing a new police station. The premium was transferred to a debt service fund. A total of $4,990,000 was used to construct the police station, which was completed before December 31, 2020, the end of the fiscal year. The remaining funds were transferred to the debt service fund. The bonds were dated April 1, 2020, and paid interest on October 1 and April 1. The first of 20 equal annual principal payments of $250,000 is due April 1, 2021. In addition to reporting Bonds Payable and (unamortized) Bond Premium in the government-wide Statement of Net Position, how would the bond sale be reported
Answer:
$100,000
$350,000
Explanation:
The bond sale be reported as debt service expenditures for 2020 and 2021 can be calculated as follows
The Amount would be reported as debt service expenditures for 2020
= $5,000,000 x 4% x 1/2 year
= $100,000
The amount would be reported as debt service expenditures for 2021
= $5,000,000 x 4% + $250,000
= $350,000
Q 20.27: Liberty Bicycles currently sells unassembled bikes for $240 each. The variable production costs for each bike are $35 and the fixed production costs are $72. Liberty is thinking about selling the bikes fully assembled for $300 each. The variable costs for assembling one bike will be $18 and the fixed costs will be $31. Given these figures, Liberty will increase its net income per unit by ________ if it opts to assemble the bikes.
Answer:
$11
Explanation:
Find the incremental effect on net income of assembling the bikes as follows :
Incremental analysis for assembling the bikes per unit
Sales ( $300 - $240) $60
Less incremental costs :
Variable costs ($18)
Fixed production costs ($31)
Incremental Income/(loss) $11
Conclusion
Thus Liberty will increase its net income per unit by $11 if it opts to assemble the bikes.
Under the allowance method for uncollectible accounts, the journal entry to record the estimate of uncollectible accounts would include a credit to
Answer and Explanation:
The journal entry to record the estimation of the uncollectible accounts is shown below:
Bad debt expense XXXX
To Allowance of doubtful debts XXXX
(Being the estimation of the uncollectible account is recorded)
Here the bad debt expense is debited as it increases the expenses account and credited the allowance as it decreased the assets
Hence, the same is to be considered
Rufus Inc. and Hardy Company are negotiating a nontaxable exchange of business properties. Rufus’s property has a $50,000 tax basis and a $77,500 FMV. Hardy’s property has a $60,000 tax basis and a $90,000 FMV. Which party to the exchange must pay boot to make the exchange work? How much boot must be paid? Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired? Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?
Answer:
Which party to the exchange must pay boot to make the exchange work?
Rufus must pay boot since the FMV of its property is less than the FMV of Hardy's property.How much boot must be paid?
$90,000 - $77,500 = $12,500Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired?
Rufus doesn't have any gain, and the tax basis for the new asset will be $50,000 + $12,500 = $62,500Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?
Since Hardy's property basis is $60,000 and it would be receiving $50,000 (Rufus's property) + $12,500 = $62,500, then it must recognize a $2,500 gain. The basis of Hardy's new property will be $62,500.What benefits do customers receive in return for the sacrifice they make when buying a membership at Planet Fitness?
Answer:
Customers receive the following benefits in return for the price they pay when they buy membership at Planet Fitness:
a) Fitness training
b) Physical exercise
c) Relaxation and comfort
d) Clean and safe environment and conducive atmosphere
e) the friendly and courteous staff is a bonus
Explanation:
Planet Fitness operates fitness centers and clubs around the world under franchises. Planet Fitness has adequate and clean cardio machines, free weights of up to 80 lbs., curl bars, and other strength training equipment and accessories. The average gym user is offered abundant, 5-star, and world-class Cardio equipment and services.
to beter take into account the differential impact of fixed and variable costs, marketing managers canuse ____ pricing
Answer:
target return pricing
Explanation:
Target return pricing is a pricing method that uses a very simple formula:
target price = [unit cost + (desired return x capital)] /unit salesThe price is based on the ROI that the company expects from a certain product (or project).
Even though this is a fairly simple method for pricing a good or service, it can also have serious negative consequences:
it doesn't take in account consumers' tastes or preferenceswhat happens if the expected ROI is too high, that could kill a project that could have been successful otherwisethe time frames are not always exact, e.g. you believed that a project would last 5 years, but due to a technological breakthrough it only lasts 4In order to successfully apply this type of pricing strategy, a company must be able to achieve or exceed their sales goals.
We sell to a customer paying with Visa and the fee is 2%. Part of the transaction would include a debit to:
Answer:
there are no available options, but the complete journal entry to record a credit card sale is:
Dr Cash account 98% of sale
Dr Credit card fees 2% of sale
Cr Sales revenue 100% of sale
Explanation:
Since VISA payments are automatic, you can debit cash directly. There is no need to debit accounts receivable and then once the payment is confirmed, debit cash. Some credit cards do not pay automatically, and in those cases you should debit accounts receivable.
Instead of credit card fees, some people use credit card discount, or credit card expense, but all these accounts are basically the same. They are all expense accounts.
[Same investments as the prior question] Suppose two local start-ups are raising funding by issuing shares of equity at $10,000 per share. One start-up is a whiskey distillery; the other is a beer brewery. You estimate the expected returns on your investment to be 50% over five years in both cases. You also believe that the likelihood of being paid out $20,000 per share is greater with the distillery than with the brewery. Suppose now that you hold a portfolio of many other risky assets, and that this would be your N 1 investment. Which investment do you prefer to make, the distillery or the brewery
Answer:
you should purchase the brewery's stock
Explanation:
First of all, as investors we should always try to maximize our returns while avoiding risks. It is really hard to balance both, but we must compare stocks to see which may represent a higher gain while posing the lesser or same risk.
Initial investment in each = $10,000 (equal for both)expected returns over 5 years = $5,000 (equal for both)but there is a higher possibility of the distillery's stock being more valuable, and that makes a difference.Both stocks seem equally risky, but they are not. When you calculate expected returns, you multiply the possible returns by their probability. I'm not sure how they calculated the expected returns of the above stocks, but the following can help you understand my point:
stock B return probability expected return
great 100% 25% 25%
normal 50% 50% 25%
bad 0% 25% 0%
total 100% 50%
stock D return probability expected return
great 100% 30% 30%
normal 50% 40% 20%
bad 0% 30% 0%
total 100% 50%
Both stocks have the same expected return, but stock B is less risky because the chance of being a bad investment is lower.
Crimson Inc. recorded credit sales of $797,000, of which $540,000 is not yet due, $170,000 is past due for up to 180 days, and $87,000 is past due for more than 180 days. Under the aging of receivables method, Crimson Inc. expects it will not collect 2% of the amount not yet due, 16% of the amount past due for up to 180 days, and 27% of the amount past due for more than 180 days. The allowance account had a debit balance of $3,800 before adjustment. After adjusting for bad debt expense, what is the ending balance of the allowance account
Answer:
$65,290
Explanation:
The computation of the ending balance of the allowance account is shown below:-
Bad Debts for accounts receivable not yet due is
= $540,000 × 0.02
= $10,800
Bad Debts for accounts receivable due for up-to 180 days:
= $170,000 × 0.16
= $27,200
Bad Debts for accounts receivable due for more than 180 days:
= $87,000 × 0.27
= $23,490
Ending balance of Allowance account:
= $3,800 + $10,800 + $27,200 + $23,490
= $65,290
Doug and Sue Click file a joint tax return and decide to itemize their deductions. The Clicks' income for the year consists of $89,000 in salary, $1,500 interest income, and $700 long-term capital loss. The Clicks' expenses for the year consist of $1,450 investment interest expense. Assuming that the Clicks' marginal tax rate is 35 percent, what is the amount of their investment interest expense deduction for the year
Answer:
$1,450
Explanation:
Interest Income = $1,500
Investment Interest expenses = $1,450
Allowed deduction limit investment interest is subject to investment income. So $1,450 is allowed as deduction
Dr. Bob Jackson owns a parcel of land that a local farmer has offered to rent from Dr. Bob for the next 10 years. The farmer has offered to pay $20,000 today or an annuity of $3,200 at the end of each of the next 10 years. Which pay-ment method should Dr. Jackson accept if his required rate of return is 10 percent
Answer:
Dr. Jackson should accept the $20,000 paid today
Explanation:
you must analyse the present value of both payment options:
the present value of the $20,000 paid today is exactly $20,000the present value of the annuity = $3,200 x 6.1446 (PV annuity factor, 10%, 10 periods) = $19,662.72Since the present value of the immediate cash payment is higher than the annuity payment, Bob should choose that offer.
Your grandpa doesn't trust "young 'uns" so you are set to inherit a $1,000,000 trust fund on your 50th birthday. Your Grandpa also doesn't like banks so he has buried the cash somewhere on his 40-acre farm in a location that will be revealed to you by his lawyer since Grandpa will not be around when you turn 50. If you could possibly get your hands on it now (when you are 20), you could put it in a bank at 6% annual interest. If you were able to dig up the money now, how much would you have when you turn 50?
Answer:
FV= $5,743,491.17
Explanation:
Giving the following information:
Present value (PV)= $1,000,000
Number of periods (n)= 30 years
Annual interest= 6% = 0.06
To calculate the future value (FV), we need to use the following formula:
FV= PV*(1+i)^n
FV= 1,000,000*(1.06^30)
FV= $5,743,491.17
Waterway Company sold 10,100 Super-Spreaders on December 31, 2020, at a total price of $1,050,400, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $535,300. The assurance warranties extend for a 2-year period and are estimated to cost $37,000. Waterway also sold extended warranties (service-type warranties) related to 1,800 spreaders for 2 years beyond the 2-year period for $10,800. Given this information, determine the amounts to report for the following at December 31, 2020: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash. Amounts Reported in Income Sales revenue $ Warranty Expense Amounts Reported on the Balance Sheet Unearned Service Revenue $ Cash Warranty Liability
Answer:
Amounts Reported in Income
Particulars Amount
- Sales revenue $1,050,400
- Warranty expenses $37,000
Amounts Reported on the Balance Sheet
Particulars Amount
- Unearned service revenue $10,800
- Cash ($1,050,400 + $10,800) $1,061,200
- Warranty Liability $37,000
Delphi Company uses job-order costing. It applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, Delphi estimated that it would work 37,000 machine-hours and incur $222,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were issued for use in production, $367,000 ($345,000 direct and $22,000 indirect). b. Employee costs were incurred: direct labor, $309,000; indirect labor, $44,000; and administrative salaries, $155,000. c. Factory depreciation, $175,000. d. Selling costs, $140,000. e. Manufacture overhead was applied to jobs. The actual machine hours for the year were 35,000 hours. a. Compute the total manufacturing overhead cost applied to jobs during the year.
Answer:
Allocated MOH= $210,000
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 222,000/37,000
Predetermined manufacturing overhead rate= $6 per machine hour
Now, we cal allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 6*35,000
Allocated MOH= $210,000
Kent Manufacturing produces a product that sells for $64.00 and has variable costs of $35.00 per unit. Fixed costs are $348,000. Kent can buy a new production machine that will increase fixed costs by $20,500 per year, but will decrease variable costs by $4.50 per unit.
Required:
Compute the contribution margin per unit if the machine is purchased.
Answer:
The contribution margin per unit is $33.50
Explanation:
The contribution margin per unit in the case when the machine is purchased is shown below:
= Selling price per unit - variable cost per unit
= $64 - ($35 - $4.50)
= $64 - $30.50
= $33.50
hence, the contribution margin per unit is $33.50 and the same is to be considered
We simply applied the above formula
Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $92,000?
a. $27,960.b. $62,000.c. $57,960.d. $4,040.
Answer:
Net income= $27,960
Explanation:
Giving the following information:
Fixed costs= $30,000
contribution margin ratio= 0.63
Sales= $92,000
First, we need to calculate the total contribution margin:
Total contribution margin= 92,000*0.63= 57,960
Now, the net income:
Net income= 57,960 - 30,000
Net income= $27,960
You will invest $25,000 in an ice cream shop your sister is starting. You expect to triple your investment in six years. What is the rate of return that you have in mind? (Rounded to the nearest percent.)
Answer:
r = 20.09%
Explanation:
we can use the future value formula to calculate the expected rate of return:
future value = present value x (1 + r)ⁿ
future value = $25,000 x 3 = $75,000present value = $25,000n = 6$75,000 = $25,000 x (1 + r)⁶
(1 + r)⁶ = $75,000 / $25,000 = 3
⁶√(1 + r)⁶ = ⁶√3
1 + r = 1.2009
r = 0.2009 = 20.09%
4. Sectoral shifts, frictional unemployment, and job searches Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania will . The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will . The temporary unemployment resulting from such sectoral shifts in the economy is best described as unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Improving a widely used job-search website so that it matches workers to job vacancies more effectively Establishing government-run employment agencies to connect unemployed workers to job vacancies Increasing the benefits offered to unemployed workers through the government's unemployment insurance program
Answer:
decrease
increase
structural unemployment
Improving a widely used job-search website so that it matches workers to job vacancies more effectively
Establishing government-run employment agencies to connect unemployed workers to job vacancies
Explanation:
If the world price of steel falls, the profits that can be earned from producing steel would fall. This would make steel-producing firms cutback on production. If they do this, they would lead less labour, so the demand for labour would fall.
The decrease in the price of steel would make purchasing steel by automobile companies cheaper. This would lead to a rise in production and as a result an increase in the demand for labour.
Structural unemployment occurs when there is a mismatch between the skills of labour and the jobs available. Measures taken to increase information on available jobs would reduce this type of unemployment
you can acquire an existing business for $2 million. You are uncertain about future demand. There is a 40% chance of high demand, in which case the present value of the business will be $3 million. There is a 25% chance of moderate demand, and the associated present value is $1.5 million. Finally, there is a 35% chance of low demand, in which case the present value is $1 million. Draw a decision tree for this problem. What is the expected net present value of the business
Answer:
Expected net present value of the project = $1,925,000
Explanation:
The cost of acquiring business = $2,000,000
Expected net present value of the project = High demand NPV*High demand percent + Moderate demand NPV*Moderate demand percent + Low demand NPV*Low demand percent
Expected net present value of the project = $3,000,000 *40% + $1,500,000*25% + $1,000,000*35%
Expected net present value of the project = $1,200,000 + $375,000 + $350,000
Expected net present value of the project = $1,925,000
Conclusion: The cost of acquiring business is more than expected net present value, it is advisable not to invest in the project.
A bank offers 8.00% on savings accounts. What is the effective annual rate if interest is compounded semi-annually?Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))
Answer:
Effective Annual Rate = 8.1600%
Explanation:
The effective annual rate the interest rate that is adjusted for compounding over a given period of time. It is given by the formula:
[tex]r = (1+\frac{i}{n})^n -1\\where:\\r = effective\ annual\ rate\\i = nominal\ interest\ rate\ = 8.00\% = 0.08 \\n = number\ of\ compounding\ periods\ per\ year\ = 2\ (semi-annually)[/tex]
[tex]r = (1+\frac{0.08}{2})^2 -1\\r = (1\ +\ 0.04)^2 - 1\\r = (1.04)^2 - 1\\r = 1.0816 - 1\\r = 0.0816\\r = 8.1600 \%[/tex]
When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due to:_________
a. A predictable amount based on the past prices.
b. A component based on new information unrelated to past prices.
c. The security's risk.
d. The risk free rate.
e. None of the above.
Answer:
e. None of the above.
Explanation:
When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due due to new information related to the stock". This is because any new information on stock which is unrelated to stock prices will lead to an increase/decrease in the stock price over a period of time.
Hunter is the founder and CEO of a Web site development firm. Clients are typically small to midsized companies that are seeking an offbeat, innovative approach to their online design, as well as functionality that offers customers surprising ways to interact with the site. What is the more appropriate style of leadership, given the type of work Hunter wants his Web site designers to do
Answer:
The right solution would be "Transformational ".
Explanation:
The required leadership style throughout this situation, considering the sort of job Hunter requires his application or website developers or designers to be doing, is Transformative. The objective was to design or create an unexpected as well as creative approach is to develop or construct various websites.On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account balances:
Accounts Debit Credit
Cash $ 24,300
Accounts Receivable 42,500
Inventory 42,000
Land 79,600
Allowance for Uncollectible Accounts 2,700
Accounts Payable 29,200
Notes Payable (8%, due in 3 years) 42,000
Common Stock 68,000
Retained Earnings 46,500
Totals $ 188,400 $ 188,400
The $42,000 beginning balance of inventory consists of 420 units, each costing $100.
During January 2018, Big Blast Fireworks had the following inventory transactions:
January 3 Purchase 1,050 units for $115,500 on account ($110 each).
January 8 Purchase 1,150 units for $132,250 on account ($115 each).
January 12 Purchase 1,250 units for $150,000 on account ($120 each).
January 15 Return 160 of the units purchased on January 12 because of defects.
January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
January 22 Receive $529,000 from customers on accounts receivable.
January 24 Pay $359,000 to inventory suppliers on accounts payable.
January 27 Write off accounts receivable as uncollectible, $2,100.
January 31 Pay cash for salaries during January, $110,000.
The following information is available on January 31, 2018.
a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
b. At the end of January, $5,200 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected.
c. Of the remaining accounts receivable, the company estimates that 5% will not be collected.
d. Accrued interest expense on notes payable for January.
1. Record adjusting entries on January 31 for the above transactions.
2. Interest is expected to be paid each December 31. Accrued income taxes at the end of January are $13,500.
3. Prepare an adjusted trial balance as of January 31, 2021.
4. Prepare a multiple-step income statement for the period ended January 31, 2021.
5. Prepare a classified balance sheet as of January 31, 2021.
6. Record closing entries.
Answer:
journal entriesJanuary 3 Purchase 1,050 units for $115,500 on account ($110 each).
Dr Inventory 115,500
Cr Accounts payable 115,500
January 8 Purchase 1,150 units for $132,250 on account ($115 each).
Dr Inventory 132,250
Cr Accounts payable 132,250
January 12 Purchase 1,250 units for $150,000 on account ($120 each). *110
Dr Inventory 150,000
Cr Accounts payable 150,000
January 15 Return 160 of the units purchased on January 12 because of defects.
Dr Accounts payable 19,200
Cr Inventory 19,200
January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
Dr Accounts receivable 576,000
Cr Sales revenue 576,000
Dr Cost of goods sold 407,350
Cr Inventory 407,350
January 22 Receive $529,000 from customers on accounts receivable.
Dr Cash 529,000
Cr Accounts receivable 529,000
January 24 Pay $359,000 to inventory suppliers on accounts payable.
Dr Accounts payable 359,000
Cr Cash 359,000
January 27 Write off accounts receivable as uncollectible, $2,100.
Dr Bad debt expense 2,100
Cr Allowance for uncollectible accounts 2,100
January 31 Pay cash for salaries during January, $110,000.
Dr Wages expense 110,000
Cr Cash 110,000
adjusting entries
a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
Dr Cost of goods sold [110 units x ($120 - $100)] 2,200
Cr Inventory 2,200
b. At the end of January, $5,200 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected.
Dr Bad debt expense 1,560
Cr Allowance for uncollectible accounts 1,560
c. Of the remaining accounts receivable, the company estimates that 5% will not be collected.
Dr Bad debt expense 3,975
Cr Allowance for uncollectible accounts 3,975
d. Accrued interest expense on notes payable for January.
Dr Interest expense 280
Cr interest payable 280
Accrued income taxes at the end of January are $13,500.
Dr Income taxes expense 13,500
Cr Income taxes payable 13,500
adjusted trial balancedebit credit
Cash $84,300
Accounts Receivable $89,500
Inventory $11,000
Land $79,600
Allowance for Uncollectible Acc. $10,335
Accounts Payable $48,750
Interest payable $280
Income taxes payable $13,500
Notes Payable $42,000
Common Stock $68,000
Retained Earnings $46,500
Sales revenue $576,000
Cost of goods sold $409,550
Wages expense $110,000
Bad debt expense $7,635
Interest expense $280
Income taxes expense $13,500
Totals $805,365 $805,365
income statementSales revenue $576,000
COGS ($409,550)
Gross profit $166,450
Operating expenses:
Wages expense $110,000Bad debt expense $7,635 ($117,635)Operating profit (EBIT) $48,815
Interest expense ($280)
Income taxes expense ($13,500)
Net income $35,035
closing entriesDr Sales revenue 576,000
Cr Income summary 576,000
Dr Income summary 540,965
Cr Cost of goods sold 409,550
Cr Wages expense 110,000
Cr Bad debt expense 7,635
Cr Interest expense 280
Cr Income taxes expense 13,500
Dr Income summary 35,035
Cr Retained earnings 35,035
balance sheetAssets:
Current assets
Cash $84,300
Accounts Receivable, net $79,165
Inventory $11,000
Total current assets $174,465
Property, plant and equip.
Land $79,600
Total P, P & E $79,600
Total assets $254,065
Liabilities:
Current liabilities
Accounts Payable $48,750
Interest payable $280
Income taxes payable $13,500
Total current liabilities $62,530
Long term liabilities:
Notes Payable $42,000
Total long term liabilities $42,000
Stockholders' equity:
Common Stock $68,000
Retained Earnings $81,535
Total stockholder's equity $149,535
Total liabilities + stockholders' equity $254,065