Answer:
$12,500
Explanation:
Calculation for the total amount removed from Joshua’s estate in 2017
Since we were told that In 2016, Joshua gave the amount of $12,500 to his son in which in the same year which was 2017, the XYZ shares are worth the amount of $25,000 which means that the total amount removed from Joshua’s estate in 2017 will be $12,500 ($25,000-$12,500).
A share is a fraction of a company's or financial asset's ownership. Shareholders are dwellers who own shares in a company.
Answer is $12,500
Calculation for the total amount removed from Joshua’s estate in 2017
Since we were told that In 2016, Joshua gave the amount of $12,500 to his son in which in the same year which was 2017, the XYZ shares are worth the amount of $25,000 which means that the total amount removed from Joshua’s estate in 2017 will be $12,500 ($25,000-$12,500).
To know more about stock, refer to the link:
https://brainly.com/question/22372494
a. Prepare a cost of goods manufactured statement for January.
b. Determine the cost of goods sold for January.
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows:
Inventories January 1 January 31
Materials $314,000 $276,800
Work in process 216,000 239,800
Finished goods 163,200 189,000
January 31
Direct labor $567,000
Materials purchased during the month 606,600
Factory overhead incurred during the month:
Indirect labor 60,520
Machinery depreciation 32,000
Heat, light, and power 12,200
Supplies 8,220
Property taxes 8,880
Miscellaneous costs 16,460
Answer:
a.Cost OF Goods Manufactured $ 1324,680
b.Cost OF Goods Sold 1298,880
Explanation:
Sandusky Manufacturing Company
Cost of Goods Manufactured Statement
For the Month Ended January 31
Materials Inventories Beginning $314,000
Add Materials purchased during the month 606,600
Less Materials Inventories January 31 Ending $276,800
Total Materials Used $ 643,800
Direct labor $567,000
Factory overhead incurred during the month: $ 138280
Indirect labor 60,520
Machinery depreciation 32,000
Heat, light, and power 12,200
Supplies 8,220
Property taxes 8,880
Miscellaneous costs 16,460
Total Manufacturing Costs 1349,080
Add Work in process Beginning 216,000
Cost OF Goods Available For Manufacture $ 1565,080
Less Work in process Ending 239,800
Cost OF Goods Manufactured $ 1325,280
The Cost OF Goods Manufactured Statement is obtained by the following formula
Cost OF Goods Manufactured = Materials used+ direct labor+ FOH + WIP Beginning - WIP Ending.
Sandusky Manufacturing Company
Cost of Goods Sold Statement
For the Month Ended January 31
Cost OF Goods Manufactured $ 1325,280
Add Finished goods Beginning 163,200
Cost OF Goods Available For Sale 1488,480
Less Finished goods Ending 189,000
Cost OF Goods Sold 1299,480
The Cost OF Goods Sold Statement is obtained by the following formula
Cost OF Goods Sold = Cost OF Goods Manufactured+ FG Beginning - FG Ending.
The weather report says that a devastating and unexpected freeze is expected to hit Florida tonight during the peak of the citrus harvest. In an efficient market, one would expect the price of Florida Orange's stock to Group of answer choices increase immediately. drop immediately. gradually increase for the next several weeks. unable to determine. gradually decline for the next several weeks.
Answer:
A. drop immediately.
Explanation:
In an efficient market, assets within it are expected to accurately represent all of the knowledge that affects that asset. The market is very sensitive to and changes accordingly to new knowledge.
When the weather forecast states that it is expected that a catastrophic and unpredictable freeze will strike Florida tonight during the height of the citrus harvest, the price of Orange 's stock will instantly drop.
A later good news could trigger an increase in stock prices.
After posting the transactions from Part A, you should have the following account balances. Use this information to prepare either a multiple step income statement or a contribution format income statement.
Account Name Debit Credit
Raw Materials $33,400
Cash $133,100
Work in Process $391,800
Salaries Expense $47,000
Rent Expense $5,100
Advertising Expense $12,000
Sales Commissions Expense $26,000
Accumulated Depreciation $21,000
Depreciation Expense $5,000
Cost of Goods Sold $203,600
Sales Revenue $51 9,000
Answer: Its B
Explanation:
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
An investor has a long-term investment time horizon, no liquidity needs and is very risk averse. Your main concern when making a recommendation to this client is:
Answer:
Safety of principal
Explanation:
PRINCIPAL
SAFETY OF PRINCIPAL is the probability or likelihood that the main money invested or the money which was paid for a specific investment will be returned to the investor.
Secondly SAFETY OF PRINCIPAL help to give the assurance that a person's or an individual principal or their initial investment will tend to remain the same over the life of the investment or period of the investment which is why Safety of principal can be achieved by carefully carryingout the review of both the economic and industrial trends before deciding to choose what type of investment to go for.
Therefore if an investor has a long-term investment time horizon in which their is no liquidity needs and is very risk averse.
My main concern when making a recommendation to this client is: SAFETY OF PRINCIPAL.
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.
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
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.
The study of economic growth concentrates on understanding the determinants of the: Group of answer choices change in per capita GDP over time.
Answer:
the long term change in per capita GDP
Explanation:
please find attached the full question.
economic growth is the persistent rise in the amount of goods and services produced by an economy, it is the increase in the level of wealth of an economy overtime.
Per capita GDP = GDP / population
it is the GDP per person.
by understanding the factors that lead to long term changes in per capita GDP, one can determine what causes economic growth
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)
________________________________
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.
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
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
Use the following information to calculate cash received from dividends: Dividends revenue $ 32,300 Dividends receivable, January 1 3,100 Dividends receivable, December 31 4,400 Multiple Choice $27,900. $31,000. $35,400. $32,300. $33,600.
Answer:
$31,000
Explanation:
Calculation for the cash received from Dividend
Beginning dividends receivable + Dividend revenue - dividends paid = Ending dividends receivable
Hence,
Using this formula
Dividends paid = Beginging dividends receivable + dividend revenue - Ending dividends receivable
Let plug in the formula
= 3,100+32,300-4,400
=31,000
Therefore the amount of cash received from dividend will be $31,000.
Thus the dividend revenue is not the dividends which was received in cash, but instead it is the dividends which was earned during the period.
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.
preferred stockholders must receive their stated dividends prior to the distribution of any earnings to common stockholders and bondholders true false
Answer: False
Explanation:
While it's is true that Preferred Shareholders should receive their stated dividends before Common Shareholders do, the same cannot be said for Bondholders.
Bonds are a type of debt and as such get preferential treatment to a company's income. Bond interest is paid before any dividend to any class of shareholders. Even in the event of a Liquidation, Bond holders are paid first before Preferred Shareholders.
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
You plan to borrow $ 3 comma 000$3,000 from a bank. In exchange for $ 3 comma 000$3,000 today, you promise to pay $ 3 comma 210$3,210 in one year. What does the cash flow timeline look like from your perspective? What does it look like from the bank's perspective? What does the cash flow timeline look like from your perspective? (Select the best choice below.)
Answer:
There are no options included in the question, but the answers should include something like:
cash flow timeline from my perspective:
today (or year 0) $3,000
year 1 -$3,210
cash flow timeline from the bank's perspective:
today (or year 0) -$3,000
year 1 $3,210
Today (year 0) you will receive $3,000, so your cash inflow will be $3,000. On the other hand, the bank will give you the money, so they have a cash outflow of -$3,000.
In one year when you payback the loan, your cash outflow will be -$3,210, but the bank's cash inflow will be $3,210.
Viking Corporation is owned equally by Sven and his wife Olga, each of whom hold 160 shares in the company. Viking redeemed 80 shares of Sven's stock for $1,900 per share on December 31, 20X3. Viking has total E&P of $580,000. What are the tax consequences to Viking because of the stock redemption?
Answer:
A reduction of $152,000 in E&P because of the exchange
Explanation:
Solution
Recall that:
Sven and Olga hold shares of =160
Viking redeemed 80 shares of Sven's stock for the amount = $1,900
Total E&P = $580,000
Now
The redemption will be treated as a dividend so, because Viking decreases its E&P by the amount issued.
You have been appointed to lead an existing group. Your boss, who informed you of the assignment, made these comments: "These people have some real issues. They have been a problem for years. They stick together like family but never seem to get much work done." Which of these would best describe this group?
Answer:
This is a group that can be defined by its high cohesiviness and low performance norms.
Explanation:
In this case, the new leader must focus on solving this problem that already exists where team members have high cohesion, but who have a low performance with regard to compliance with internal rules and procedures.
The ideal in this case would be for the leader to review the set of company policies and standards and seek to establish new rules and procedures for living and working together.
Having a cohesive team is not a weakness for an organization, the ideal is to know how to exploit the potential of each member of that team, so that each one delivers to the company an effective job that contributes to the achievement of the objectives and organizational goals.
The manager can also invest in training, redesigning the layout of work and tasks, setting deadlines for completing activities, delivering warnings to ward off inappropriate behavior during working hours, etc.
can anyone plzzzz help me 5 concepts of marketing and its explanation.. i ll give 5 stars nd i ll mark them as brainlist..
Answer:
1. production concept, 2. product concept, 3. selling concept, 4. marketing concept, and 5. societal marketing concept.
Explanation:
So marketing is a department of management that tries to design strategies that will help build profitable relationships with other consumers.
Explanation:
5 Essential Marketing Concepts You Should Know
HELLO where are you from and how old are you me 21 from Phillippines
The Production Concept.
The Product Concept.
The Selling Concept.
The Marketing Concept.
The Societal Marketing Concept.
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
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.
In 2019, Linda gave her son, Jonathan 425 shares of School Products Inc., common stock. Linda paid $9,350 for the stock in 2013. At the date of the gift, the FMV of the stock was $6,800. Assuming that there is no gift tax paid, if Jonathan sells the stock for $6,000, he will recognize:
Answer:
Lol
Explanation:
Goteem
Job-Order Costing and Decision Making [LO2-1, LO2-2, LO2-3]
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 225,000
Fixed manufacturing overhead cost $ 4,275,000
Variable manufacturing overhead cost per machine-hour $ 2.00
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job P90 was started, completed, and sold to the customer for $3,700. The following information was available with respect to this job:
Direct materials 1,702
Direct labor cost $ 1,221
Machine-hours used 84
Compute the total manufacturing cost assigned to Job P90.
Answer:
a. $21 per machine hours
b. $4,855
Explanation:
a. The computation of the plantwide predetermined overhead rate is shown below:
Plantwide predetermined overhead rate is
= Variable overhead cost rate per machine hour + Fixed overhead cost rate per machine hour
= $2 + (fixed manufacturing overhead cost ÷ Estimated machine hours)
= $2 + ($4,275,000 ÷ 225,000 machine hours)
= $2 + $19
= $21 per machine hour
b. Now the total manufacturing cost assigned is
Particulars Amount
Direct material $1,702
Direct labor $1,221
Variable manufacturing overhead $168
(84 × $2)
Total variable cost $3,091
Add:
Fixed manufacturing overhead
(84 × $21) $1,764
Total manufacturing cost assigned
to Job P90 $4,855
Art purchased 2,500 shares of Delta stock. His purchase represents 10 percent ownership in the firm. His shares have increased in value from the $12 a share he originally paid to today's market value of $13 a share. Assume Delta goes bankrupt and owes $450,000 more in debts than the firm can pay after liquidating all of its assets. What is the maximum loss per share Art will incur on this investment
Answer: $12
Explanation:
From the question, we are informed that Art purchased 2,500 shares of Delta stock and his purchase represents 10 percent ownership in the firm. We are further told that his shares have increased in value from the $12 a share he originally paid to today's market value of $13 a share.
Assume Delta goes bankrupt and owes $450,000 more in debts than the firm can pay after liquidating all of its assets, the maximum loss per share Art will incur on this investment will be the purchase price per share which was given in the question as $12.
This is because when a firm guess bankrupt, the maximum loss which will be incurred by Art will be the value of his investment which is $12.
In its first year of operations, Swifty Corporation purchased available-for-sale debt securities costing $80,000 as a long-term investment. At December 31, 2022, the fair value of the securities is $76,400. Prepare the adjusting entry to record the securities at fair value.
Answer:
Dr Unrealized Gain/ Loss-Income $3,600
Cr Fair Value Adjustment-Trading $3,600
Explanation:
Preparation of the adjusting entry to record the securities at fair value for Swifty Corporation
Since the Corporation purchased available-for-sale debt securities at the cost of $80,000 as a long-term investment in which the fair value of the securities was the sum of $76,400 at December 31,2022, this means to record the transaction we have to Debit Unrealized Gain/ Loss-Income with the sum of $3,600 and Credit Fair Value Adjustment-Trading with same amount.
Hence, the transaction is calculated as:
Available-for-sale debt securities -Fair value of the securities
$80,000-$76,400= $3,600
Swifty Corporation Journal entry
Dec.31
Dr Unrealized Gain/ Loss-Income $3,600
Cr Fair Value Adjustment-Trading
( $80,000-$76,400) $3,600
Jake is the maker of a $2,000 promissory note payable to Kim. Kim indorses the note toLou who, in turn, indorses it to Mona, who then indorses it to Nat, the present holder
Refer to Fact Pattern 14-2. Nat properly presents the note to Jake for payment, but Jake dishonors it. With timely notice to the proper parties, Nat may collect payment on the note from
a. Kim, Lou, or Mona.
b. Kim or Lou only.
c. Mona only.
d. no one
Answer:
it's Jake, Kim, or Lyron or basically the first one but yours appears to be different
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