Answer:
Production= 7,960 units
Explanation:
Giving the following information:
Sales= 8,000 units
Desired ending inventory= 470 units
Beginning inventory= 510 units
To calculate production, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 8,000 + 470 - 510
Production= 7,960 units
Carl purchased an apartment complex for $2.6 million on March 17 of year 1. of the purchase price, $1,050,000 was attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $75,000. What is Carl's allowable depreciation deduction for his real property for years 1 and 2? (Round your final answers to the nearest whole dollar amount.)
Answer:
total depreciation year 1 = $71,358
total depreciation year 2 = $80,358
Explanation:
Land cannot be depreciated, therefore Carl can only depreciate the building's cost = $2,600,000 - $1,050,000 = $1,550,000
Rental property can be depreciated at a fixed rate of 3.636% per year during 27.5 years. Depreciation per year for the building = $56,358
Furniture on rental property can be depreciated on a 5 year basis using a MACRS table and half year convention:
depreciation year 1 = 20% x $75,000 = $15,000
depreciation year 2 = 32% x $75,000 = $24,000
total depreciation year 1 = $56,358 + $15,000 = $71,358
total depreciation year 2 = $56,358 + $24,000 = $80,358
Suppose a Monopsony facing the following labor supply given by curve L = 10W, where L is the number of workers and W = hourly wage. a) Express the hourly wage in terms of the number of workers (L). b) Provide an expression of total labor cost in terms of the number of workers (L) c) Express the marginal expense of labor (MEL) in terms of the number of workers. d) Suppose the marginal revenue product of labor ((MRPL) = 7 – L. What is the level of workers that maximizes the monophony’s profit? What is the wage paid by the monopsony at the profit maximizing level of labor?
Answer: The answer is given below
Explanation:
a. Express the hourly wage in terms of the number of workers (L).
From the question, the labor supply given by L = 10W, where,
L = number of workers
W = hourly wage
Since L = 10W
Divide both side by 10
L/10 = 10W/10
W = L/10
The hourly wage(W) expressed in terms of the number of workers(L) is L/10.
b. Provide an expression of total labor cost in terms of the number of workers (L).
Total labor cost = L × W
Since W = L/10,
Total labor cost = L × L/10
= L²/10
c. Express the marginal expense of labor (MEL) in terms of the number of workers.
Marginal expense of labor will be gotten when we find the derivative of the total labor cost.
Total labor cost = L²/10
MEL = 2L/10
We can reduce to lowest term
MEL = L/5
d. Suppose the marginal revenue product of labor ((MRPL) = 7 – L. What is the level of workers that maximizes the monophony’s profit? What is the wage paid by the monopsony at the profit maximizing level of labor?
Marginal revenue product of labor (MRPL) = 7 – L
At equilibrium, the marginal revenue product of labor (MRPL) will be equal to the marginal expense of labor(MEL)
MRPL = MEL
7 - L = L/5
Cross multiply
5(7 - L) = L
35 - 5L = L
35 = L + 5L
35 = 6L
L = 35/6
L = 5.83 = 6 Approximately
The level of workers that maximizes the monophony’s profit will be approximately 6.
Wages paid = L/10
= 6/10
= 0.6
The wage paid by the monopsony at the profit maximizing level of labor will be 0.6.
Eastern University had the following transactions at the beginning of its academic year: Student tuition and fees were billed in the amount of $7,150,000. Of that amount $4,620,000 was collected in cash. Pell Grants in the amount of $2,012,000 were received by the university. The Pell Grants were applied to student accounts. Student scholarships, for which no services were required, amounted to $570,000. These were applied to student tuition bills at the beginning of each semester. Required: Prepare journal entries to record the above transactions assuming: a. Eastern University is a public university. b. Eastern University is a private university.
Answer:
100
Explanation:
hope this helps
Cameron has a small graphics design business that specializes in customizing social websites. The business is growing; however, in order to expand, he realizes he must restructure. As his business consultant, you explain that he will need to consider EXCEPT:________
Answer: Introducing mass production methods into his business.
Explanation:
As the given information suggests that Cameron has a small graphic design business. He is responsible for customizing social websites which is a creative and time consuming task. This also require a lot of thinking and innovation skills. At the verge of expanding his business he should avoid mass production as this will likely to reduce his quality of production and limit his creativity.
With respect to the unearned income from services, which of the following is true? a.An accrual basis taxpayer can spread the income over the period services are to be provided if all of the services will be completed within three years following the year of receipt. b.The treatment of unearned income is the same for tax and financial accounting for both cash and accrual basis taxpayers. c.A cash basis taxpayer must report all of the income in the year received. d.An accrual basis taxpayer can spread the income over the period services are to be provided on a contract for three years or less. e.None of these choices are correct.
Answer:
c. A cash basis taxpayer must report all of the income in the year received.
Explanation:
As a standard, all individuals and business entities are required by law to pay their taxes to the government at a specific period of time.
With respect to the unearned income from services, a cash basis taxpayer must report all of the income in the year received, whether as property or in cash. This simply means that, a cash basis taxpayer can neither deduct promissory notes or checks as payments nor report receivables as income because all of the expenses and income must be reported in the year they were received or paid.
However, not all taxpayers are permitted to use the cash basis method of reporting, these include C corporations, tax shelter, partnership with a C corporation etc.
Dominion Bank also pays 3.25% annual interest, compounded daily. If you had the following deposits and withdrawals, calculate the amount of interest you would have earned at Dominion bank during the month of March. (March has 31 days)
DATE ACCOUNT ACTIVITY BALANCE
March 1 beginning balance $6,500
March 16 withdraw $1,500 ????
March 28 deposit $700 ????
a. $8.69
b. $5.35
c. $33.36
d. $16.08
Answer:
Option D. $16.08
Explanation:
The balance $6,500, $5,000 ($6500-$1500) and $5,700 ($5000+$700) was outstanding for 15, 12 and 4 days.
So now we will calculate the interest earned during the outstanding period for each monetary amount. The formula to compute interest is given as under:
Effective interest = Amount * [(1 + Annual Interest rate / 365)^Days - 1]
Here,
Amount is $6500
Annual Interest rate is 3.25% and Days are 15.
So by putting values, we have:
Effective interest = $6,500 * [(1 + 3.25% / 365)^15 - 1] = $8.69
Similarly for $5,000 and $5,700, we have:
Effective interest = $5,000 * [(1 + 3.25% / 365)^12 - 1] = $5.35
Effective interest = $5,700 * [(1 + 3.25% / 365)^4 - 1] = $2.03
Now,
Total Interest = $8.69 + $5.35 + $2.03 = $16.07 which is close to $16.08 and the difference is because of rounding off.
Hence, the correct option is D.
A consumer household cleaning products company, the Klean Kompany, has multiple products. Each is labeled with the Klean Kompany name, including Klean Kompany Disinfecting Wipes, Klean Kompany Kitchen Shine, and Klean Kompany Toilet Bowl Scrub.Which branding strategy is Klean Kompany using to build its brand?
Answer:
brand extension
Explanation:
Based on the information provided within the question it can be said that Klean Kompany is using the branding strategy known as brand extension. This is the process of using the same brand name that has already been established and is well known, for a variety of different product lines, including new products entering the market. Which is exactly what Klean Kompany is doing by adding their brand name on every single product they release into the market. This is done in order to let people know that the product is from that brand and convince them to buy it.
The following data are available for Cole Company. Increase in accounts payable $120,000 Increase in bonds payable 300,000 Sale of investments 150,000 Issuance of common stock 180,000 Payment of cash dividends 90,000 Net cash provided by financing activities is:
Answer:
Net Cash=$390,000
Explanation:
Net Cash provided by financing activities = Increase in bond payable + Issuance of common stock - Payment of cash dividends
Net Cash= $300,000+$180,000-$90,000
Net Cash=$390,000
Net cash also refers to the amount of cash remaining after a transaction has been completed and all associated charges and deductions have been subtracted
Based on the data available, the cash provided by financing activities is $300,000
Cash from financing includes loans and capital related to the financing of the business.
Cash from financing is therefore:
= Increase in bonds payable + Issuance of common stock - Payment of dividends
= 300,000 + 180,000 - 90,000
= $390,000
In conclusion, cash from financing is $390,000
Find out more about cash from financing at https://brainly.com/question/25948084.
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 901,000 Credit sales 301,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 126,000 debit Allowance for doubtful accounts 5,100 debit Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 4% of credit sales, (b) 2% of total sales and (c) 7% of year-end accounts receivable.
Answer:
Please find the detailed answer in the explanation section.
Explanation:
A. 4% of credit sales
Bad Debts Expense is 4% of $301,000
0.04 x $301,000
=$12,040
Adjusting entry
Dec. 31
Dr Bad debt expense $12,040
Cr Allowance for Doubtful allowance $12,040.
B. 2% of total sales
Total sales = cash sales + credit sales
$ 901,000 + $ 301,000
=$1,202,000
Bad Debts Expense is 2% of 1,202,000
0.02x $1,202,000
=$24,040
Adjusting entry
Dec. 31
Dr Bad debt expense $24,040
Cr Allowance for Doubtful allowance $24,040.
C. 7% of year-end accounts receivable.
Unadjusted balance is $5,100
Estimated balance = $8,820(7% of $126,000)
Adjusted balance is $13,920($5,100 + $8,820)
Adjusting entry
Dec. 31
Dr Bad debt expense $8,820
Cr Allowance for Doubtful allowance $8,820
PortaCom manufactures notebook computers and related equipment. PortaCom's product design group developed a prototype for a new high-quality portable printer. The new printer features an innovative design and has the potential to capture a significant share of the portable printer market. Preliminary marketing and financial analyses provided the following selling price, first-year administrative cost, and first-year advertising cost:
Selling Price $284 per unit
Administrative Cost $500,000
Advertising Cost $700,000
In the simulation model for the PortaCom problem, the preceding values are constants and are referred to as parameters of the model.
(a) An engineer on the product development team believes that first-year sales for the new printer will be 18,500 units. Using estimates of $50 per unit for the direct labor cost and $88 per unit for the parts cost, what is the first-year profit using the engineer's sales estimate?
(b) The financial analyst on the product development team is more conservative, indicating that parts cost may well be $101 per unit. In addition, the analyst suggests that a sales volume of 9,500 units is more realistic. Using the most likely value of $50 per unit for the direct labor cost, what is the first-year profit using the financial analyst's estimates?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Selling Price $284 per unit
Administrative Cost $500,000
Advertising Cost $700,000
(a) Units= 18,500
Direct labor= $50
Direct material= $88
Sales= 18,500*284= 5,254,000
Variable costs= (50 + 88)*18,500= (2,553,000)
Contribution margin= 2,701,000
Administrative Cost= (500,000)
Advertising Cost= (700,000)
Net operating income= 1,501,000
B)Units= 9,500
Direct labor= $51
Direct material= $101
Sales= 9,500*284= 2,698,000
Variable costs= (51 + 101)*9,500= (1,444,000)
Contribution margin= 1,254,000
Administrative Cost= (500,000)
Advertising Cost= (700,000)
Net operating income= 54,000
A consumer values a car at $30,000 and a producer values the same car at $20,000. If the transaction is completed at $24,000, what level of sales tax will result in unconsummated transaction
Answer:
Dear user,
Answer to your query is provided below
$4000 sales tax
Explanation:
In question, a consumer values a car at $30,000 and a producer values the same car at $20,000. If the transaction is completed at $24,000, then the transaction will generate:
$6,000 worth of buyer surplus and $4,000 of seller surplus.
$4000 sales tax will result in unconsummated transaction.
Mr. Zeplin wants to make a cash gift to each of his five children, to each of their five spouses, and to each of his 13 grandchildren. Assume the taxable year is 2019. How much total wealth can he transfer to his descendants without making a taxable gift if he is an unmarried individual
Answer:
Total wealth transfer is $345000.
Explanation:
Given the number of children = 5
Total number of spouses = 5
Total number of grandchildren = 13
If the individual is unmarried then below is the calculation of wealth transfer to the descendants with the taxable gifts.
In 2018, an individual unmarried person can transfer wealth without tax or free of gift tax is $15000 per person. So the total number of persons to whom the wealth is to be transferred 5 + 5 + 13 = 23 persons.
Total wealth Mr. Zeplin transfer without tax = 15000 × 23 persons = $345000
Sandra Sousa, Registered Dietician Trial Balance July 31, 2018 Balance Account Title Debit Credit Cash 33000 Accounts Receivable 9600 Office Supplies 2200 Prepaid Insurance 2800Equipment 18000Accounts Payable 3100Unearned Revenue 292Notes Payable 34000Sousa, Capital 22000Sousa, Withdrawals 2000 Service Revenue 11258 Salaries Expense 1500Rent Expense 1200 Utilities Expense 350Total $ Net Inoome 70,650 70,650Requirement1. Prepare the income statement for the month ended July 31, 2018,Requirement 2. Prepare the statement of owners equity for the month ended July 31, 2018. Requirement 3. Prepare the balance sheet &s of July 31, 2018. Requirement 4. Calculate the debt ratio as of July 31, 2018 70,650 $ 70,650 Select the debt ratio formula on the first line and then calculate the ratio -Debt ratio
Answer:
Requirement 1. Prepare the income statement for the month ended July 31, 2018.
Sandra Sousa, Registered Dietitian
Income Statement
For the Month Ended July 31, 2018
Service Revenue $11,258
Salaries Expense -$1,500
Rent Expense -$1,200
Utilities Expense -$350
Net income $8,208
Requirement 2. Prepare the statement of owners equity for the month ended July 31, 2018.
Sandra Sousa, Registered Dietitian
Statement of Owner's Equity
For the Month Ended July 31, 2018
Sousa, Capital balance July 1, 2018 $22,000
Investment during month $0
Net income $8,208
subtotal $30,208
Withdrawals during the month -$2,000
Sousa, Capital balance July 31, 2018 $28,208
Requirement 3. Prepare the balance sheet &s of July 31, 2018.
Sandra Sousa, Registered Dietitian
Balance Sheet
For the Month Ended July 31, 2018
Assets:
Cash $33,000
Accounts Receivable $9,600
Office Supplies $2,200
Prepaid Insurance $2,800
Equipment $18,000
Total assets $65,600
Liabilities and equity:
Accounts Payable $3,100
Unearned Revenue $292
Notes Payable $34,000
Sousa, Capital $22,000
Retained earnings $6,208
Total liabilities and equity $65,600
Requirement 4. Calculate the debt ratio as of July 31, 2018.
debt ratio = liabilities / assets = $65,600 / $37,392 = 175.44%
debt to equity ratio = liabilities / equity = $37,392 / $28,208 = 132.56%
An engineer has an income that puts him in the 25% federal income tax bracket and at the 10% state incremental tax rate. She has an opportunity to earn extra $500 by doing a small consulting job. What will be his effective tax rate on the additional income
Answer:
The answer is 32.5%
Explanation:
Solution
Recall that:
Engineer income tax =25%
Incremental tax rate =10%
Extra earnings =$500
Now, what ill be his effective tax rate on the additional income
Thus
Federal income tax = 500 * 25 % = $125
The state tax = (500 - 125) * 10 % = $37.50
Effective tax rate = (125 + 37.50) / $500
=162.50 /$ 500
= 0.325 or 32.5% that is (0.325 * 100)
Hence the effective tax rate is 32.5 %
How does risk pooling affect inventory levels when a company uses fewer and centralized warehouses? Please explain.
Answer:
In simple words, Inventory risk pooling is the concept that the variability in demand for raw materials is reduced by aggregating demand across multiple products. When properly employed, a business can use risk pooling to maintain lower inventory levels while still avoiding stock out conditions. Although for preventing stock out situation a company need warehouses where they can keep supply sufficient for emergency conditions.
Other dividend policy issues
Several factors affect a firm's ability to pay a dividend. Three such factors are described in the table: profitability (an increase in net income),
investment opportunities, and capital structure (an increase in the debt ratio). Use the table to indicate how a firm's ability to pay a dividend is affected by the factors described.
(Hint: Consider each factor in isolation, with everything else held the same.)
Ability to Pay Dividends The ability to pay dividends The ability to pay dividends The ability to pay dividends Factors Affecting Dividend Payment Net income increases. More profitable investment opportunities are available. The firm increases its debt ratio. Dernham Burnham Inc. is a typical company that is very concerned with meeting investors’ expectations and keeping investors happy. Its earnings tend to fluctuate from year to year because of the nature of the business the company is in. Which of these statements most likely describes Dernham Burnham Inc.’s dividend policy?
A. Despite the fact that Dernham Burnham Inc.'s earnings tend to fluctuate from year to year, the company most likely pays a predictable, stable dividend each year.
B. Dernham Burnham Inc. most likely pays very large dividends in years with high earnings and small dividends in the years with low earnings. Grade It Now Save & Continue Continue without save in
Answer:
1.
Net income increases. - Ability to pay Dividends increases.
Dividends are paid from Retained Earnings which are derived from Net Income. If Net income increases therefore, so does the ability to pay Dividends.
More profitable investment opportunities are available - Decreases Ability to pay Dividends.
If there are more profitable opportunities for investment available, the business will invest in those opportunities. By doing so they will reduce the amount of cash that they have which is cash that could have been paid as dividends.
The firm increases its debt ratio. - Ability to pay Dividends Increase
As a result of the company borrowing more money, there will be more money left to pay out dividends so more dividends will be paid.
2. A. Despite the fact that Dernham Burnham Inc.'s earnings tend to fluctuate from year to year, the company most likely pays a predictable, stable dividend each year.
Companies like Dernham that aim to please investors usually adopt a predictable, stable dividend policy every year so that the investors will have more faith in them and be sure of earnings every year. This will give them a higher rating with the investors.
An accountant has debited an asset account for $700 and credited a liability account for $620. Which of the following would be an incorrect way to complete the recording of the transaction?
A) Credit an asset account for $80
B) Credit another liability account for $80.
C) Credit a stockholders' equity account for $80.
D) Debit a stockholders' equity account for $80
Answer:
Debit a stockholder equity
Explanation:
The error in the entry here is that the either the asset asset is over debited with $80 or the liability account under credited with $80 (700-620)
While the asset account should have debit balances , The liability account and the stockholders equity should have credit balances.
A credit of $80 to the asset account means that the excess has been removed while a credit of $80 to another liability account provides for the shortage in the initial entry.
A credit of $80 to the stockholders account means that the shortage as a result of the error in the initial entries also been addressed.
Therefore the incorrect option is a debit entry of $80 to the stockholders equity account .
Today is your 20th birthday, and your parents just gave you $5,000 that you plan to use to open a stock brokerage account. You plan to add $500 to the account each year on your birthday. Your first $500 contribution will come one year from now on your 21st birthday. Your 45th and final $500 contribution will occur on your 65th birthday. You plan to withdraw $5,000 from the account five years from now on your 25th birthday to take a trip to Europe. You also anticipate that you will need to withdraw $10,000 from the account 10 years from now on your 30th birthday to take a trip to Asia. You expect that the account will have an average annual return of 12%. How much money do you anticipate that you will have in the account on your 65th birthday, following your final contribution
Answer:
You anticipate that you will have $432,522 in the account on your 65th birthday, following your final contribution.
Explanation:
To calculate this, we use the formula for calculating the future value (FV) and FV of ordinary annuity as appropriate as given below:
FVd = D * (1 + r)^n ......................................................................... (1)
FVo = P * {[(1 + r)^n - 1] ÷ r} ...................... (2)
Where,
FVd = Future value of initial deposit or balance amount as the case may be = ?
FVo = FV of ordinary annuity starting from a particular year = ?
D = Initial deposit = $5,000
P = Annual deposit =s $500
r = Average annual return = 12%, or 0.12
n = number years = to be determined as necessary
a) FV in five years from now
n = 5 for FVd
n = 4 for FVo
Substituting the values into equations (1) and (2), we have:
FVd = $5,000 * (1 + 0.12)^5 = $8,812
FVo = $500 * {[(1 + 0.12)^4 - 1] ÷ 0.12} = $2,390
FV5 = Total FV five years from now = $8,812 + $2,390 = $11,201
FVB5 = Balance after $5,000 withdrawal in year 5 = $11,201 - $5,000 = $6,201.
b) FV in 10 years from now
n = 10 - 5 = 5 for both FVd and FVo
Using equations (1) and (2), we have:
FV of FVB5 = $6,201 * (1 + 0.12)^5 = $10,928
FVo = $500 * {[(1 + 0.12)^5 - 1] ÷ 0.12} = $3,176
FV10 = Total FV 10 years from now = $10,928 + $3,176 = $14,104
FVB10 = Balance after $10,000 withdrawal in year 10 = $14,104 - $10,000 = $4,104
c) FV in 45 years from now
n = 45 - 10 = 35 for both FVd and FVo
Using equations (1) and (2), we have:
FV of FVB10 = $4,104 * (1 + 0.12)^35 = $216,690
FVo = $500 * {[(1 + 0.12)^35 - 1] ÷ 0.12} = $215,832
FV45 = Total FV 45 years from now = $216,690 + $215,832 = $432,522
Conclusion
Therefore, you anticipate that you will have $432,522 in the account on your 65th birthday, following your final contribution.
Billy Bob runs a seafood restaurant. Last year, he earned $70000 in revenue. He had explicit costs of $15000. Billy Bob could have made $30,000 working for the county, and he could have received an additional $20,000 if he had rented out his building and equipment.Calculate Billy Bob’s accounting profit.
Answer:
Accounting profit= $55,000
Explanation:
Giving the following information:
Last year, he earned $70000 in revenue. He had explicit costs of $15000.
The accounting profit doesn't take into account the opportunity cost of other income options.
Accounting profit= 70,000 - 15,000= $55,000
Coca-Cola has supported numerous health and sporting cause, but to what extent is this genuine CSR.
Answer:
Considerable extent
Explanation:
Note that CSR (Corporate social responsibility) entails that an organization gives back to its community or environment in which it operates in areas such as financing community developmental projects, providing employment etc.
Coca-Cola, therefore, has done what CSR entails although it could still do more by reducing the environmental pollution coming from its factories, reducing the calories found in its drinks etc.
Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $120,500 and $124,100, respectively. During the year, actual overhead was $106,500 and actual direct labor cost was $110,800. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include
Answer:
Under/over applied overhead= $1,164.48 overapplied
Explanation:
Giving the following information:
Estimated overhead and direct labor costs for the year were $120,500 and $124,100, respectively. During the year, actual overhead was $106,500 and actual direct labor cost was $110,800.
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= 120,500/124,100
Predetermined manufacturing overhead rate= $0.971
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 0.971*110,880= $107,664.48
Finally, we determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 106,500 - 107,664.48
Under/over applied overhead= $1,164.48 overapplied
Implicit transaction
Answer:
Dear user,
Answer to your query is provided below
Implicit Transaction are like Rent of owned building, Interest of own capital etc.
Explanation:
These transactions deals with the expenditure incurred on the intangible items.
Implicit transaction refers to the opportunity transaction of using firm's own resources.
Sweet Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,088,700 of 14% term corporate bonds on March 1, 2020, due on March 1, 2035, with interest payable each March 1 and September 1, with the first interest payment on September 1st, 2020. At the time of issuance, the market interest rate for similar financial instruments is 12%. As the controller of the company, determine the selling price of the bonds.
Answer:
$4,775,565.49
Explanation:
The computation of the selling price of the bond is shown below:
Particulars Amount PV factor 6% Present value
Semi-annual interest $216,209 19.60044 $4,237,791.53
Principal $3,088,700 0.174110131 $537,773.96
Total $4,775,565.49
Working notes
Semi-annual interest $216,209 = $3,088,700 × 14% × 6 ÷ 12
PV factor 3%:
Semi-annual interest 13.76483115 = {(1 - (1.06)^-30) ÷ 0.06 }
Principal 0.174110131 = {1 ÷ 1.03^30}
When the cost method is used to account for an investment, the carrying value of the investment is affected by a.the earnings and dividend distributions of the investee b.the periodic net income of the investee c.the dividend distributions of the investee d.neither the earnings nor the dividends of the investee
The Tinslow Co. has 125,000 shares of stock outstanding at a market price of $93 a share. The company has just announced a 5-for-2 stock split. How many shares of stock will be outstanding after the split
Answer:
312,500
Explanation:
A stock split increases the number of outstanding shares and decreases the value of shares.
A stock split is a form of returns given to shareholders in a corporation.
In a 5-for-2 split, for every 2 shares owned, shares would increase by 5 .
(125,000 × 5 ) / 2 = 312,500
I hope my answer helps you
Following are transactions for Valdez Services, a company owned by Brina Valdez. A. Brina Valdez invested $20,000 cash in the company In exchange for common stock. B. The company provided services to a client and Immediately received $900 cash. C. The company recelved $10,000 cash from a client in payment for services to be provided next year. D. The company received $3,500 cash from a client in partial payment of accounts receivable. E. The company borrowed $5,000 cash from the bank by signing a note payable. Required: Examine the transactions and identify those that create revenues for Jade Services.Transaction ATransaction BTransaction CTransaction DTransaction EPrepare general Journal entries to record those transactions that created those revenues in the above given order.
Answer:
Transactions that create revenue :
Transaction B
Transaction C
Transaction D
Journal Entries :
Transaction B
Cash $900 (debit)
Sales Revenue $900 (credit)
Transaction C
Cash $10,000 (debit)
Unearned Revenue $10,000 (credit)
Transaction D
Cash $3,500 (debit)
Accounts Receivable $3,500 (credit)
Explanation:
Transactions that create revenue
Hint ; Revenue is the increases in income that results in increases in assets and decreases in liabilities
On January​ 1, 2018, the Prepaid Insurance account of​ Dogwood, Inc. had a beginning balance of $ 1,800. Three months of insurance premiums remain in this beginning balance. On February​ 21, 2018, the company paid an annual insurance premium in the amount of $ 4,100 for the period beginning March 1. On February​ 28, 2018, the balance in Prepaid Insurance is $ 1,200.A. TrueB. False
Answer:
B. False
Explanation:
Beginning balance
-Period of policy= expired 2 months
-Period of unexpired insurance = 1 month (Out of 3 month, Insurance premium for period "Jan 1 to Feb 28" is expired)
Amount in prepaid insurance insurance= $1800 * 1/3 = $600
Current balance
Period = "0" since period of coverage will start from 1 march
Period of unexpired insurance = 12
Amount in prepaid insurance = 4,100
Thus, Total amount in prepaid insurance for the beginning and Current period= $600 + $4,100 = $4,700
The amount in prepaid insurance is $4700, hence the balance as stipulated as Prepaid Insurance = $ 1,200 is false
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below.
The company sells many styles of earrings, but all are sold for the same price- $13 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):
January (actual)... 20,800 June (budget)... 50,800
February (actual)... 26,800 July (budget)... 30,800
March (actual)... 40,800 August (budget ... 28,800
April (budget)... 65,800 September (budget) 25,800
May (budget)... 100,800
The concentration of sales before and during May is due to Mother's Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month.
Suppliers are paid $7 for a pair of earrings. One-half of a month's purchases are paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 20% of a month's sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible.
Monthly operating expenses for the company are given below:
Variable:
Sales commissions..................6% of sales
Fixed:
Advertising.....................$199,200
Rent................................17,200
Salaries........................105,200
Utilities.........................6,200
Insurance......................2,200
depreciation.................13,200
Insurance is paid on an annual basis, in November of each year.
The company plans to purchase $15,400 in new equipment during May and $39,200 in new equipment during June; both purchases will be for cash. The company declares dividends of $11,000 each quarter, payable in the first month of the following quarter.
A listing of the company's ledger accounts as of March 31 is given below:
Assets
Cash.............................................................................$ 130,400
Accounts Receivable($34,840 February sales; $424,320
March Sales)................................. 459,1600
Inventory...................................................................... 184,240
Prepaid insurance......................................................... 21,800
Property and equipment(net)....................................... 861,200
Total Assets................................................................. $1,656,800
Liabilities and Stockholders Equity
Accounts Payable......................................................... $177,800
Dividends Payable......................................................... 11,000
Capital stock................................................................. 880,000
Retained Earnings......................................................... 588,000
Total liabilities and stockholders equity $1,656,800
The company maintains a minimum cash balance of $55,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.
The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $55,000 in cash.
Required
Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets:
a. A sales budget, by month and in total
b. A schedule of expected cash collections from sales, by month and in total.
c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.
d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.
2. A cash budget. Show the budget by month and in total.
Answer:
Earrings Unlimited1a. Sales Budget
April May June Total
Credit Sales in unit 65,800 100,800 50,800 217,400
Selling Price $13 $13 $13 $13
Sales Value $855,400 $1,310,400 $660,400 $2,826,200
April May June Total
Sales Commission 6% $51,324 $78,624 $39,624 $169,572
1b. Expected Cash Collections:
April May June Total
20% month of sale $171,080 $262,080 $132,080 $565,240
70% following month 371,280 598,780 917,280 1,887,340
10% second month 34,840 53,040 85,540 173,420
Total $577,200 $913,900$1,134,900$2,626,000
1c. Merchandise Purchase Budget
April May June Total
Ending Inventory 40,320 20,320 12,320 12,320
Units Sold 65,800 100,800 50,800 217,400
Units available 106,120 121,120 63,120 229,720
Beginning Inventory 26,320 40,320 20,320 26,320
Purchases (units) 79,800 80,800 42,800 203,400
Beginning Inventory $184,240 $282,240 $142,240 $184,240
Purchase ($) $558,600 $565,600 $299,600 $1,423,800
Cost (goods available)$742,840 $847,840 $441,840 $1,608,040
Less Ending Inventory$282,240 $142,240 $86,240 $86,240
Cost of goods sold $460,600$705,600 $355,600 $1,521,800
1d. Expected Cash Disbursements for Merchandise Purchases:
April May June Total
Purchase ($) $558,600 $565,600 $299,600
50% 1st month $279,300 $282,800 $149,800 $711,900
50% 2nd month $177,870 $279,300 $282,800 $739,970
Total Disbursements$457,170 $562,100 $432,600 $1,451,870
2d. Cash Budget
April May June Total
Beginning Balance $130,400 $55,306 $55,282 $130,400
Cash Collections $577,200 $913,900 $1,134,900 $2,626,000
Cash Disbursements:
Merchandise ($457,170) ($562,100) ($432,600) ($1,451,870)
Sales Commission ($51,324) ($78,624) ($39,624) ($169,572)
Other fixed costs($327,800) ($327,800) ($327,800) ($983,400)*
Equipment purchase ($15,400) ($39,200) ($54,600)
Dividends paid ($11,000) ($11,000)
Bank Loan $195,000 $70,000 ($265,000) $0
Loan Interest ($2,650) ($2,650)
Minimum balance $55,306 $55,282 $83,308 $83,308
Earrings Unlimited INCOME STATEMENT for the quarter to June 30:
Sales $2,826,200
Cost of goods sold 1,521,800
Gross Profit $1,304,400
Less: Expenses:
Sales Commission 169,572
Other fixed costs 983,400
Insurance Expenses 6,600
Bank Loan Interest 2,650
Depreciation 39,600 $1,201,822
Net Income $102,578
Retained Earnings b/f $588,000
Dividends ($11,000)
Retained Earnings c/f $679,578
Earrings Unlimited BALANCE SHEET as of June 30:
Assets:
Current Assets:
Cash $83,308
Accounts Receivable $659,360
Inventory $86,240
Prepaid Insurance $15,200 $844,108
Noncurrent Assets:
Property & Equipment $915,800
Depreciation $39,600 $876,200
Total Assets $1,720,308
Liabilities + Equity:
Liabilities:
Accounts Payable $149,730
Dividends Payable $11,000 $160,730
Capital Stock $880,000
Retained Earnings $679,578 $1,559,578
Total Liabilities + Equity $1,720,308
Explanation:
a) March Purchases:
Ending Inventory in units = 26,320(65,800 x 40%)
Units sold = 40,820
Units available for sale = 67,140 (26,320 + 40,820)
Less Beginning Inventory = 16,320 (40,800 x 40%)
Purchases = 50,820 units
Beginning Inventory = $114,240 (40,800 x $7 x 40%)
Purchases = $355,740 (50,820 x $7)
Cost of goods available $469,980
Less Closing Inventory 184,240 (26,320 x $7)
Cost of goods sold $285,740
b) Accounts Receivable
Beginning Balance $459,160
Sales $2,826,200
Cash Receipts ($2,626,000)
Ending Balance $659,360
c) Accounts Payable
Beginning Balance $177,800
Purchases $1,423,800
Cash Disbursements ($1,451,870)
Ending Balance $149,730
d) Sales Budget January February March
Credit sales in unit 20,800 26,800 40,800
Selling price $13 $13 $13
Sales Value $270,400 $348,400 $530,400
e) A master budget combines other smaller budgets within the business and turns them into one overall budget, which gives a comprehensive overview of the entity's finances. The master budget includes the HR, marketing, and all other departmental budgets to produce an overall single budget.
An economy consists of three workers: Kevin, Rajiv, and Yakov. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Kevin can either mow 2 lawns or wash 1 car; Rajiv can either mow 1 lawn or wash 1 car; and Yakov can either mow 1 lawn or wash 2 cars.
For each of the scenarios listed below, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row?
a. All three spend all their time mowing lawns. (A)
b. All three spend all their time washing cars. (B)
c. All three spend half their time on each activity. (C)
d. Kevin spends half his time on each activity, while Rajiv only washes cars and Yakov only mows lawns. (D)
Answer:
1. 40 lawns
2. 40 washed cars
3. 20 lawns, 20 washed cars
4. 25 lawns mowed, 25 washed cars
Explanation:
In the given question,
A) When all three spend all their time mowing lawns that is
Kevin= 2 X 10 hrs = 20
Rajiv = 1 x 10 hrs = 10
Yakov = 1 x10 hrs = 10
Total mowed lawns will be= 20 +10 + 10 = 40 lawns.
B) When all three spend their time washing cars
Kevin = 1 x 10 hrs = 10
Rajiv = 1 x 10 hrs =10
Yakov = 2 x 10 hrs = 20
Total cars washed= 20 +10 + 10
C) when all three people spend their half time on each activity
Kevin = 2 x 5 hours = 10
Rajiv = 1 x 5 hrs = 5
Yakov1 x 5 hrs = 5
Total lawn mowed will be= 10 + 5 + 5 = 20 therefore time spent on car washing will be 20 hrs.
D) Time on the mowing of the lawn will be =
Kevin = 2 x 5 hrs = 10
Rajiv = 0
Yakov = 1 x 10 hours = 10
Time on the washing of the car will be 20 hrs
Kevin = 1 x 5
Rajiv = 1 x 10
Yakov = 0
Total time = 15 hrs
A trucking company sold its fleet of trucks for $55,400. The trucks originally cost $1,426,000 and had Accumulated Depreciation of $1,273,000 recorded through the date of disposal. What gain or loss did the trucking company record when it sold the fleet of trucks
Answer:
Loss of $97,600
Explanation:
From the question above a trucking company sold its fleet for $55,400
The truck original cost is $1,426,000
The depreciation is $1,273,000
The first step is to calculate the book value
Book value= cost-accumulated depreciation
= $1,426,000-$1,273,000
= $153,000
The next step is to subtract the book value from the cost to determine if it a gain or loss
= $55,400-$153,000
= -97,600
Since the value is negative then, the trucking company is at a loss of $97,600