The following information is available for the XYZ Company for the month of July:
Static Budget Actual
Units 7,000 6,650
Sales revenue $60,000 $55,715
Variable manufacturing costs $15,000 $14,250
Fixed manufacturing costs $20,000 $17,000
Variable selling & administrative expense $10,000 $10,500
Fixed selling & administrative expense $15,000 $12,000
The total sales-volume variance for operating income for the month of July would be:__________
Answer:
XYZ Company
The total sales-volume variance for operating income for the month of July would be:__________
$3,765 Favorable
Explanation:
a) Data and Calculations:
Static Budget Actual
Units 7,000 6,650
Sales revenue $60,000 $55,715
Variable manufacturing costs $15,000 $14,250
Fixed manufacturing costs $20,000 $17,000
Variable selling & administrative exp. $10,000 $10,500
Fixed selling & administrative expense $15,000 $12,000
Flexible Budget Actual
Units 6,650 6,650
Sales revenue = $57,000($60,000/7,000 * 6,650) $55,715
Variable manufacturing costs = $14,300 ($15,000/7,000 * 6,650) $14,250
Fixed manufacturing costs $20,000 $17,000
Variable selling & administrative exp. =$9,500 ($10,000/7,000 * 6,650) $10,500
Fixed selling & administrative expense $15,000 $12,000
Flexible Budget Actual Variance
Units 6,650 6,650
Sales revenue $57,000 $55,715 $1,285 U
Variable manufacturing costs $14,300 $14,250 50 F
Fixed manufacturing costs $20,000 $17,000 3,000 F
Variable selling & administrative exp. $9,500 $10,500 1,000 U
Fixed selling & administrative expense $15,000 $12,000 3,000 F
Operating income ($1,800) $1,965 $3,765 F
Splish Brothers Inc. gathered the following reconciling information in preparing its August bank reconciliation:______.
Cash balance per books, 8/31 $33600 Deposits in transit 1400 Notes receivable and interest collected by bank 8200 Bank charge for check printing 190 Outstanding checks 19200 NSF check 1630
The adjusted cash balance per books on August 31 is:_______.
a. $38580.
b. $22040.
c. $23580
d. $39980.
Answer:
d. $39,980
Explanation:
Given the above information, the adjusted cash balance per books on August 31
= Cash opening + Collection by bank - Bank charge check printing - NSF check
The next step is to fix in the values as given above.
= $33,600 + $8,200 - $190 - $1,630
= $39,980
Therefore, the adjusted cash balance per books on August 31 is $39,980
Zouar Computer Corporation currently manufactures the disk drives that it uses in its computers. The costs to produce 5,000 of these disk drives last year were as follows:
Cost per drive
Direct materials $12
Direct labor 2
Variable manufacturing overhead 5
Fixed manufacturing overhead 7
Total $26
Kidal Electronics has offered to provide Zouar with all of its disk drive needs for $27 per drive. If Zouar accepts this offer, Zouar will be able to use the freed up space to generate an additional $40,000 of income each year to produce more of its computer keyboards. Only $3 per drive of the fixed manufacturing overhead cost above could be avoided. Direct labor is an avoidable cost in this decision. Based on this information, would Zouar be financially better off making the drives or buying the drives and by how much?
a. $15,000 better to buy.
b. $20,000 better to buy.
c. $35,000 better to buy.
d. $60,000 better to make.
Answer:
Zouar Computer Corporation
a. $15,000 better to buy.
Explanation:
a) Data and Calculations:
Production capacity = 5,000
Cost per drive
Direct materials $12
Direct labor 2
Variable manufacturing overhead 5 $19
Fixed manufacturing overhead 7
Total $26
Avoidable costs:
Direct materials $12
Direct labor 2
Variable manufacturing overhead 5
Fixed manufacturing overhead 3
Avoidable opportunity cost 8 ($40,000/5,000)
Total avoidable costs $30
It will be financially better off buying the drives:
Make Buy Difference
Total avoidable costs $150,000 $135,000 $15,000 ($150,000 - $135,000)
Here are the comparative income statements of Ayayai Corp..
AYAYAI CORP.
Comparative Income Statement For the Years Ended December 31
2017 2016
Net sales $632,600 $521,900
Cost of goods sold 463,600 410,400
Gross Profit 169,000 111,500
Operating expenses 79,300 47,200
Net income $ 89,700 S64,300
Prepare a horizontal analysis of the income statement data for Ayayal Corp, using 2019 as a base. (If amount and percentage are a decrease show the numbers as negative, eg -55,000, -20% or (55,000). (20%). Round percentages to 1 decimal place, eg. 12.1%.)
Answer:
Ayayai Corp.
Horizontal Analysis:
2020 Increase 2019
Net sales $632,600 $110,700 21.2% $521,900
Cost of goods sold 463,600 53,200 13.0% 410,400
Gross Profit 169,000 57,500 51.6% 111,500
Operating expenses 79,300 32,100 68.0% 47,200
Net income $ 89,700 25,400 39.5% $64,300
Explanation:
a) Data and Calculations:
AYAYAI CORP.
Comparative Income Statement For the Years Ended December 31
2020 2019
Net sales $632,600 $521,900
Cost of goods sold 463,600 410,400
Gross Profit 169,000 111,500
Operating expenses 79,300 47,200
Net income $ 89,700 $64,300
Percentage increase or decrease = (Increase/Decrease)/Base Year's Value
Pharoah provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.
Depreciation $1,500 per month
Advertising $450 per month
Insurance $3,330 per month
Weed and feed materials $20 per lawn
Direct labor $13 per lawn
Fuel $3 per lawn
Pharoah charges $80 per treatment for the average single-family lawn.
(a) Determine the company's break-even point in number of lawns serviced per month o per Break-even point lawns
(b) Determine the company's break even point in dollars.
Answer:
Results are below.
Explanation:
Giving the following information:
Advertising $450 per month
Insurance $3,330 per month
Total fixed costs= $3,780
Weed and feed materials $20 per lawn
Direct labor $13 per lawn
Fuel $3 per lawn
Total unitary varaible cost= $36
Selling price per unti= $80
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 3,780 / (80 - 36)
Break-even point in units= 86
Now, in dollars:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 3,780 / (44 / 80)
Break-even point (dollars)= $6,873
Select the correct answer.
According to Peter Drucker, which definition best describes a good entrepreneur?
A.
one who always invents something life altering or ground-breaking
B.
one who always searches for a change, responds to it, and exploits it as an opportunity
C.
one who manages to earn large profits using ethical or unethical business practices
D.
one who ensures availability of his business’s products or services regardless of their quality
Answer:
B(one who always searches for a change responds to it and exploits it
Explanation:
I just took the test
Answer:
B
Explanation:
Plato/edmentum
Select the correct answer.
In the United States, which assessment system measures inflation?
OA
demand for goods
ОВ. .
supply of goods
Oc
consumer price index
OD
money supply in the economy
Teal Mountain Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12.00.00 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 2.5 hour per unit, and the allowance for rest periods and setup is 0.1 hours and 0.2 hours, respectively. The standard direct materials price per pound is:______.
Answer:
$2.127.
Explanation:
According to the scenario, computation of the given data are as follows,
Purchase price per pound = $2
Freight (Add) = $0.10
Handling cost (Add) = $0.07
Total cost = $2.17
Discount (Less) = (2% × $2.17) = $0.043
Direct material price = $2.127
Hence, standard direct materials price per pound is $2.127.
Peter Parker, CEO at Spdey Enterprises, finds his profits at $8,000,000 inadequate for his Web-Slinger business. His production manager, Mary Jane Watson, is insisting on an improved profit picture prior to an approval of a loan for new web-shooter manufacturing equipment. Mary Jane suggests to improve the profit line to $14,000,000 so Peter can obtain the necessary loan. The company's sales currently stands at $40,000,000 per year, its Cost of Supply Chain Purchases is $16,000,000 per year, its production costs are $10,000,000 per year, and it has fixed costs of $6,000,000 per year.
Mr. Parker has commissioned you to use a Sales Strategy and figure out the percentage improvement in Sales to achieve the desired profit? If successful, he will give you one of his brand new web-shooters right off the production line.
a. 14.29% increase in sales.
b. 57.14% increase in sales.
c. 42.86% increase in sales.
d. 71.43% increase in sales.
e. 28.57% increase in sales.
Answer:
Spdey Enterprises
The percentage improvement in Sales to achieve the desired profit is:
c. 42.86% increase in sales.
Explanation:
a) Data and Calculations:
Normal profit level = $8 million
Expected profit level = $14 million
Normal Expected
Sales per year $40,000,000 $57,142,857
Cost of purchases 16,000,000 22,857,143
Production costs 10,000,000 14,285,714
Variable costs 26,000,000 37,142,857
Total contribution $14,000,000 $20,000,000
Fixed costs 6,000,000 6,000,000
Profit level $8,000,000 $14,000,000
Expected Contribution = Expected profit level + Fixed Costs
Normal Contribution = 35% of Sales
Normal Variable costs = 65% (100% - 35%)
Expected Contribution = $20,000,000 = 35% of Sales
Therefore, Expected Sales = $57,142,857 ($20,000,000/35%)
Normal Sales = $40,000,000
Expected Sales = $57,142,857
Percentage increase = 42.86% ($57,142,857 - $40,000,000)/$40,000,000
RKJ Company has provided the following: 100,000 shares of $5 par value common stock are authorized 66,000 shares were issued 61,000 shares are outstanding. Which of the following statements is correct based only on the above facts?
A) Additional-paid in capital is reported at $112,000 on the balance sheet.
B) Treasury stock is reported at $35,000 on the balance sheet.
C) Common stock is reported at $462,000 on the balance sheet.
D) Common stock is reported at $330,000 on the balance sheet.
Answer: D) Common stock is reported at $330,000 on the balance sheet.
Explanation:
The value of the common stock in the balance sheet is calculated by:
= Shares issued * Par value
= 66,000 * 5
= $330,000
If the shares were sold for higher than the par value, the excess amount would go the Additional Paid-In capital.
Explain what nuclear medicine technologists and magnetic resonance technologists have in common.
Many radiologic laboratories utilize hybrid scanning devices that integrate the two technologies, and MRI technologists and nuclear medicine techs have similar expertise. Technologists may examine both structure and cellular health at a single glance by superimposing the two pictures.
Nuclear medicine technologists and MRI technologists share a number of abilities, and many radiologic facilities utilize hybrid scanning devices that integrate the two modalities.
What is nuclear medicine technologists?
Nuclear medicine creates images that demonstrate internal organ activity by using an ionizing radioactive tracer, typically injected into the blood.
High-quality, detailed images of inside body structures are created by MRI using radio waves and a strong magnetic field. By detecting radiation coming from various body areas after the patient receives a radioactive tracer, nuclear medicine imaging is a technique for creating images.
Hence, the significance of the nuclear medicine technologists is aforementioned.
Learn more about on nuclear medicine technologists, here:
https://brainly.com/question/27940525
#SPJ1
Risk and Return. We have seen that over long periods of time, stock investments have tended to substantially outperform bond investments. However, it is not at all uncommon to observe investors with long horizons holding entirely bonds. Are such investors irrational?
Answer:
No they are not irrational. They are risk averse
Explanation:
As a general rule the higher the returns on an investment the higher the risk of losing one's funds invested, and the lower the returns the lower the risk.
Bonds have lower returns than stocks but for investors that have long horizon holdings they would prefer investing in bonds.
This is because they are risk averse and the risk in bonds is low.
They are willing to make low returns over a long time than to risk losing their investment on stocks that are riskier
You want to invest in a riskless project in Sweden. The project has an initial cost of SKr3.86 million and is expected to produce cash Inflows of SKrl.76 million a year for three years. The project will be worthless after three years. The expected inflation rate in Sweden is 3.2 percent while It is 2.8 percent In the U.S. A risk-free security is paying 4.1 percent In the U.S. The current spot rate is $1 = SKr7.7274. What is the net present value of this project in Swedish krona if the International Fisher effect applies?
a. SKr1, 087, 561
b. SKr958, 029
c. SKr701, 458
d. SKr823, 333
e. SKr978, 177
Answer:
The net present value of this project in Swedish krona if the International Fisher effect applies is:
e. SKr978, 177
Explanation:
a) Data and Calculations:
Initial project cost = SKr 3.86 million
Annual cash inflows = SKr 1.76 million
Project duration = 3 years
Expected inflation rate in Sweden = 3.2%
Expected inflation rate in the U.S. = 2.8%
Risk-free security interest rate in the U.S. = 4.1%
Interest rate in Sweden = 4.5% (4.1% + 3.2% - 2.8%)
Current spot rate = $1 to SKr 7.7274
The present value of the cash inflows = SKr4,838,177.26
The present value of initial outflows = SKr3,860,000.00
Net present value of the project = SKr978,177.26
From an online financial calculator, the present value of the cash inflows:
N (# of periods) 3
I/Y (Interest per year) 4.5
PMT (Periodic Payment) 1760000
FV (Future Value) 0
Results:
PV = SKr4,838,177.26
Sum of all periodic payments = SKr5,280,000.00
Total Interest = SKr441,822.74
The Varone Company makes a single product called a Hom. The company has the capacity to produce 40,000 Homs per year. Per unit costs to produce and sell one Hom at that activity level are: Direct materials $20 Direct labor $10 Variable manufacturing overhead $5 Fixed manufacturing overhead $7 Variable selling expense $8 Fixed selling expense $2 The regular selling price for one Hom is $60. A special order has been received at Varone from the Fairview Company to purchase 8,000 Homs next year at 15% off the regular selling price. If this special order were accepted, the variable selling expense would be reduced by 25%. However, Varone would have to purchase a specialized machine to engrave the Fairview name on each Hom in the special order. This machine would cost $10,800 and it would have no use after the special order was filled. The total fixed costs, both manufacturing and selling, are constant within the relevant range of 30,000 to 40,000 Homs per year. Assume direct labor is a variable cost. If Varone has an opportunity to sell 37,960 Homs next year through regular channels and the special order is accepted for 20% off the regular selling price, the effect on net operating income next year due to accepting this order would be:________
a. $33,320 decrease
b. $35,480 decrease
c. $33,320 increase
d. $35,480 increase
Answer:
$69,200 Increase
Explanation:
Calculation to determine what the effect on net operating income next year due to accepting this order would be:
Incremental revenue $408,000
(8,000 units × $51 per unit)
[$60 × (1 − 15%) = $51]
Less incremental costs:
Direct materials $160,000
(8,000 units × $20 per unit)
Direct labor $80,000
(8,000 unit × $10 per unit)
Variable manufacturing overhead $40,000
(8,000 units × $5per unit)
Variable selling expense $48,000
[$8 × (1 − 25%) = $6]
(8,000 units × $6 per unit)
Special machine $10,800
Total incremental cost $338,800
Incremental net operating income$69,200
($408,000-$338,800)
Therefore the effect on net operating income next year due to accepting this order would be:
$69,200 Increase
Marigold Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment $305000 $504000 Annual net income 30000 46000 Net annual cash inflow 110000 156000 Estimated useful life 5 years 6 years Salvage value 0 0 The company requires a 10% rate of return on all new investments. Present Value of an Annuity of 1 Periods 9% 10% 11% 12% 5 3.89 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111
The net present value for Project Nuts is:_______.
a. $84000.
b. $679380.
c. $336316.
d. $175380.
Answer:
d. $175,380.
Explanation:
Net present value for Project Nuts = (Net annual cash inflow*PV of annuity at 10%, 6 period) - Initial investment
Net present value for Project Nuts = ($156000*4.355) - $504,000
Net present value for Project Nuts = $679,380 - $504,000
Net present value for Project Nuts = $175,380
Effect of accruals on the financial statements
Milea Inc. experienced the following events in 2016, its first year of operations:
1. Received $20,000 cash from the issue of common stock.
2. Performed services on account for $56,000.
3. Paid the utility expense of $2,500.
4. Collected $48,000 of the accounts receivable.
5. Recorded $10,000 of accrued salaries at the end of the year.
6. Paid a $2,000 cash dividend to the stockholders.
Required:
Record the events in general ledger accounts under an accounting equation.
Answer:
Assets = Liabilities + Stockholders’ Equity = $71,500
Explanation:
Note: See the attached excel file for how the events are recorded in general ledger accounts under an accounting equation.
From the attached excel file, we can obtain the following:
Assets = Total assets = $63,500 + $8,000 = $71,500
Liabilities = Total liabilities = $10,000
Stockholders’ Equity = Total Stockholders’ Equity = $20,000 + $41,500 = $61,500
Liabilities + Stockholders’ Equity = $10,000 + $61,500 = $71,500
Therefore, the accounting equation holds as follows:
Assets = Liabilities + Stockholders’ Equity = $71,500
The team is working through the planning processes. They are using a plan-driven approach to this system-critical change that will impact security and data protection. They are concerned about getting as much information as possible for their work. They are meeting today to begin planning for quality on their project. All of the following are inputs to the Plan Quality Management process except:______.
a. Guidelines and standards and the stakeholder register
b. The project statement and requirements documentation
c. Project work results and lessons learned repository
d. The project charter and the WBS
Answer:
a. Guidelines and standards and the stakeholder register
Explanation:
The correct option is - a. Guidelines and standards and the stakeholder register
Reason -
Project charter consists of a map that contains rules, regulations, policies, procedure and responsibility so it need inputs. It is just like user manual.
WBS is Work Breakdown Structure which is the tool that utilizes the technique and is one of the most important project management documents.
When project starts, eventually it aims for good results.
When some project is not working good, then we have to do that project again with new processes and procedures until we get the desired result.
A common stock just paid a dividend (D0) of $3.35 per share. Dividends are expected to rise at the rate of 10% per year forever. If the interest rate on this stock is 14% per year, what will the price of this stock be in Year 36?
A. $0.28
B. $12.56
C. $77.96
D. $388.26
E. $1,404.64
Using the center for gravity method, determine the optimal x-coordinate for a single facility location to serve the following 5 sites (R1-5) with the following given coordinates and daily demands. x* = []
F X Y W
R1 8 7 100
R2 2 4 220
R3 6 8 80
R4 4 7 180
R5 12 15 350
Answer:
7.139
Explanation:
From the given information:
By using the center of gravity method, we can calculate the optimal x-coordinate.
The center of gravity technique evaluates existing facilities, the distances and the length between them, and the amounts of products to be shipped when citing single facilities.
Center of gravity method can be expressed as:
[tex]X - coordinate = \dfrac{\sum X \times W}{\sum W}[/tex]
[tex]\implies \dfrac{(8 \times 100)+(2\times 220) + ( 6\times 80)+(4 \times 180) +(12\times 350)}{100+220+80+180+350}[/tex]
[tex]\implies \dfrac{(800)+(440) + ( 480)+(720) +(4200)}{930}[/tex]
[tex]\implies \dfrac{6640}{930}[/tex]
=7.139
Economics question please help :))
Answer:
c 8 bushes of wheat
Explanation:
____ communication occurs when the downstream throughput is higher than the upstream throughput. in
Answer:
asymmetrical communications
Explanation:
The asymmetric or non-symmetrical means to any system where the speed of the data or the quantity varies in one direction if we compared with the other type of direction
Also in this the downstream would be more than the upstream throughput in
Therefore the above represent the answer
Nick and Rosa are going to a music festival and are debating whether they should buy food at the festival or bring sandwiches. They only have $7 each to spend on food but would prefer the convenience of buying sandwiches at the festival to the task of preparing them beforehand. If they bring sandwiches, they will eat them regardless of how much food costs at the festival (having already expended the effort of preparing the sandwiches), and will get a utility of 10. Alternatively, if they don't bring sandwiches and are able to buy food for $7 or less, they will get utility of 20. However, if food at the festival costs more than $7 and they don't get to eat, they will get a utility of 0. The numbers in the following table reflect the utility Nick and Rosa get under each of the described outcomes.
Food Price
Options More than $7 $7 or less
Try to buy food 0 20
Bring sandwithces 10 10
If the probability that food costs more than $7 is 50%, then the expected value of utility from not preparing food is ________ , and the expected
value of utility from bringing sandwiches is___________ .
NoW, suppose Nick and Rosa a third if food at festival Costs more than $7, buy sandwiches less $7 at a deli and bring them back to the festival. If Nia and Rosa Can Choose to try to buy food at the festival, knowing they have the to buy at the deli, they now get either a utility Of 10 (if food costs more than $7 and they have to leave the festival to go to the deli) or a utility of 20 (if costs $7 or less and they can buy it at festival).
Assuming the same probabilities as before, the expected value of utility from not preparing food (with the option to convert to buying sandwiches at the deli) is ____________ therefore, the value Of the real option is ___________
Answer:
1) 10 , 10
2) 15 , 20
Explanation:
1) P( food > $7 ) = 50% = 0.5
P ( food < $7 ) = 0.5
Expected value of utility for not preparing food
= 0.5( 0 ) + 0.5(20 )
= 10
Expected value of utility from bring sandwiches
= 0.5( 10 ) + 0.5(10)
= 5 + 5 = 10
2) Considering the third option
Value of utility from not preparing food with option to convert to buying sandwiches at deli
= 0.5 ( 10 ) + 0.5(20 )
= 5 + 10 = 15
The Value of the real Option = 20
Answer:
10, 10
15, 20
Explanation:
p (food > $7) = 50% = 0.5
p (food < $7) = 0.5
= 0.5 (0) + 0.5 (20)
=10
=0.5 (10) + 0.5(10)
= 5+5=10
2. 0.5 (10) + 0.5 (20)
= 5+10 = 15
=20
Because of local practices and competitive benchmarking, a company chooses a polycentric pricing strategy, and, in the foreign market, sets a product price that is significantly lower than what it charges domestically. Which of the following is a significant risk of choosing such a strategy?
i. Creation of gray markets, or arbitrage opportunities
ii. Lowering of profit margins
iii. Violation of dumping rules
iv. Consumer confusion
a. i and ii
b. ii and iii
c. i, ii, and iii
d. i and iv
Answer:
c. i, ii, and iii
Explanation:
Given - Because of local practices and competitive benchmarking, a company chooses a polycentric pricing strategy, and, in the foreign market, sets a product price that is significantly lower than what it charges domestically.
To find - Which of the following is a significant risk of choosing such a strategy?
Solution -
The correct option is - c. i, ii, and iii
Reason -
Due to adoption of polycentric pricing strategy company is charging different prices for the same local product which is generally in favor of company to earn more profits.
With the adoption, there might be arbitrage profits arises due to fluctuation of foreign currency receipts and when it charging a significantly lower charges it may realize in lower revenue than the revenue if it had been selling in local market.
While charging less price in competitive market, company will be able to capture a large market outside which in turn result in higher orders and thereby results in violation of dumping rules, as there is prohibition to dump in bulk in any other country than the volume in domestic market.
Twilight Company uses the aging of accounts receivable method to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three categories as follows: (1) 1-30 days old, (2) 31-90 days old, and (3) more than 90 days old. Based on experience, management has estimated what portion of receivables of a specific age will not be paid as follows: (1) 3%, (2) 14%, and (3) 37%, respectively. At December 31, 2019, the unadjusted credit balance in the Allowance for Doubtful Accounts was $270. The total Accounts Receivable in each age category were: (1) 1-30 days old, $63,000, (2) 31-90 days old, $12,000, and (3) more than 90 days old, $5,000.
Required:
a. Calculate the estimate of uncollectible accounts at December 31, 2019.
b. Prepare the appropriate adjusting entry dated December 31, 2019
Answer:
a. Acct. receivable % uncollectible Est. uncollectible
1-30 days old $63,000 3% $1,890
31-90 days old $12,000 14% $1,680
> 90 days old $5,000 37% $1,850
Total $5,420
b. Date General journal Debit Credit
Dec 31 Bad debts expenses $5,150
Allowance for doubtful accounts $5,150
($5,420 - $270)
A comparative balance sheet and income statement is shown for Cruz, Inc.
CRUZ, INC. Comparative Balance Sheets December 31, 2013
2013 2012
Assets
Cash $94,800 $24,00
Accounts receivable, net 41,000 51,000
Inventory 85,800 95,800
Prepaid expenses 5,400 4,200
Furniture 109,000 119,000
Accum. depreciation- Furniture (17,000) (9,000)
Total assess $319,000 $285,000
Liabilities and Equity
Accounts payable $15,000 $21,000
Wages payable 9,000 5,000
Income taxes payable 1,400 2,600
Notes payable long-term 29,000 69,000
Common stock, $5 par value 229,000 179,000
Retained earnings 35,600 8,400
Total liabilities and equity $319,000 $285,000
CRUZ, INC. Income Statement For Year Ended December 31, 2013
Sales $488,000
Cost of goods sold 314,000
Gross profit 174,000
Operating expenses
Depreciation expense $37,600
Other expenses 89,100 126,700
Income before taxes 47,300
Income taxes expense 17,300
Net Income $30,000
Use the above balance sheet and income statement to prepare the cash provided used from operating activities section by direct method. Amounts deducted should be indicated with a minus sign.
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright's accounting records is provided also.
WRIGHT COMPANY
Comparative Balance Sheets
December 31, 2021 and 2020
($ in thousands)
2021 2020
Assets
Cash $ 121 $ 105
Accounts receivable 148 150
Short-term investment 53 18
Inventory 148 145
Land 110 135
Buildings and equipment 725 550
Less: Accumulated depreciation (205) (150)
$ 1,100 953
Liabilities
Accounts payable $ 42 $ 50
Salaries payable 4 8
Interest payable 9 7
Income tax payable 9 12
Notes payable 0 35
Bonds payable 320 250
Shareholders’ Equity
Common stock 420 350
Paid-in capital—excess of par 195 175
Retained earnings 101 66
$ 1,100 $ 953
WRIGHT COMPANY
Income Statement
For Year Ended December 31, 2021
($ in thousands)
Revenues:
Sales revenue $ 620
Expenses:
Cost of goods sold $ 280
Salaries expense 88
Depreciation expense 55
Interest expense 18
Loss on sale of land 5
Income tax expense 94 540
Net income $ 80
Additional information from the accounting records:
Land that originally cost $25,000 was sold for $20,000.
The common stock of Microsoft Corporation was purchased for $35,000 as a short-term investment not classified as a cash equivalent.
New equipment was purchased for $175,000 cash.
A $35,000 note was paid at maturity on January 1.
On January 1, 2021, bonds were sold at their $70,000 face value.
Common stock ($70,000 par) was sold for $90,000.
Net income was $80,000 and cash dividends of $45,000 were paid to shareholders.
Required:
Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method.
Answer and Explanation:
The preparation of the cash flow statement is presented below;
WRIGHT COMPANY
Statement of Cash flows
For the Year Ended December 31, 2021 ($ in 000s)
Cash flows from operating activities
Cash inflows:
Cash received from customers $622 ($620 + $150 - $148)
Cash outflows:
To suppliers ($291) ($280 + $50 - $42 + $148 - $145)
To employees ($92) ($88 + $8 - $4)
For interest ($16) ($18 + $7 - $9)
For income tax ($97) ($94+ $12 -$9)
Net cash provided by operating activities $126
Cash flows from investing activities
Purchase of short term investment ($35)
Purchase of equipment ($175)
Sale land $20
Net cash used by investing activities ($190)
Cash flows from financing activities
Sale of bonds payable $70
Sale of common stock $90
Payment of dividends ($45)
Repayment of notes payable ($35)
Net cash provided by financing activities $80
Net Increase in cash and cash equivalents $16
Cash and cash equivalents at beginning of period $105
Cash and cash equivalents at end of period $121
The statement of cash flows of Wright Company for the year ended December 31, 2021 is $121.
Wright Company Statement of cash flows
Cash flow from operating activity:
Net income $80
Adjustments:
Depreciation expense $55
Loss on sale of land $5
Decrease in Account receivable $2
($148-$150)
Increase in short-term investment ($35)
($53-$18)
Increase in inventory ($3)
($148-$145)
Decrease in Accounts payable ($8)
($42- $50)
Decrease in Salaries payable ($4)
($4-$8)
Increase in Interest payable $2
($9-$7)
Decrease in Income tax payable ($3)
($9-$12)
Cash generated from Operating activity $91
Cash flow from investing activity:
Land sold $20
Equipment purchased ($175)
Cash used for investing activity ($155)
Cash flow from financing activity:
Common stock issued $70
Paid in capital in excess of par $20
Bond sold $70
Cash Dividend ($45)
Note payable paid off ($35)
Cash used for financing activity $80
Net increase in cash $16
[$91+($155)+$80]
Beginning cash balance $105
Ending cash balance $121
($16+$105)
Inconclusion the statement of cash flows of Wright Company for the year ended December 31, 2021 is $121.
Learn more about statement of cash flows here:https://brainly.com/question/735261
Super-Tees Company plans to sell 12,000 T-shirts at $16 each in the coming year. Product costs include: Direct materials per T-shirt $5.75 Direct labor per T-shirt $1.25 Variable overhead per T-shirt $0.60 Total fixed factory overhead $43,000 Variable selling expense is the redemption of a coupon, which averages $0.80 per T-shirt; fixed selling and administrative expenses total $19,000.
Required:
1. Calculate the following values Round dollar amounts to the nearest cent and round ratio values to three decimal places
a. Variable product cost per unit
b. Total variable cost per unit
c. Contribution margin per unit
d. Contribution margin ratio
e. Total fixed expense for the year ).
2. Prepare a contribution-margin-based income statement for Super- Tees Company for the coming year 1f required, round your per unit answers to the nearest cent Super-Tees Company Contribution-Hargin-Based Operating Income Statement For the Coming Year Per Unt
Answer: See explanation
Explanation:
1a. Variable product cost per unit = 5.75 + 1.25 + 0.60 = 7.60
b. Total variable cost per unit = 5.75 + 1.25 + 0.60 + 0.80 = 8.40
c. Contribution margin per unit = Selling price - Total Variable cost per unit
= 16 - 8.40
= 7.60
d. Contribution margin ratio = (7.6/16) × 100 = 47.5
e. Total fixed expense for the year = 43000 + 19000 = 62000
2. Price per unit. Total
Sales 16. 192000
Less: variable cost 8.40. (100800)
Less: cont. marg per unit (62000)
Net operating Income = 29200
A team member tells you that when his wife was diagnosed with a serious illness, he stole items from work and sold them, using money for her treatment. he has sice paid back the money taken, in ways that kept his theft secret. ethically, what should you do?
A. attempt to gather evidence to determine whether or not the theft in fact occurred.
B. report him to his manager
C. advice the team member to tell his manager
D. talk with a lawyer to see if this can be justified
Answer:
C
Explanation:
I would advice him to tell his manager what he has done
On January 1, 2018, Stoops Entertainment purchases a building for $480,000, paying $110,000 down and borrowing the remaining $370,000, signing a 9%, 10-year mortgage. Installment payments of $4,687.00 are due at the end of each month, with the first payment due on January 31, 2018.
Required:
1. Record the purchase of the building on January 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
3-a. Record the first monthly mortgage payment on January 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.)
3-b. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan? (Round your answers to 2 decimal places.)
On July 31, 2020, Vaughn Company had a cash balance per books of $6,132.05. The statement from Dakota State Bank on that date showed a balance of $7,748.15. A comparison of the bank statement with the Cash account revealed the following facts.
1. The bank service charge for July was $25.
2. The bank collected $1,720 for Keeds Company through electronic funds transfer.
3. The July 31 receipts of $1,297.50 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4. Company check No. 2480 issued to L. Taylor, a creditor, for $391 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $319.
5. Checks outstanding on July 31 totaled $1,866.60.
6. On July 31, the bank statement showed an NSF charge of $576 for a check received by the company from W. Krueger, a customer, on account.
Required:
Prepare the bank reconciliation as of July 31.
Answer and Explanation:
The preparation of the bank reconciliation as of July 31 is presented below;
Cash balance as per bank statement $7,748.15
Add: deposit in transit $1,297.50
Less: outstanding checks $1,866.60
Adjusted cash balance per bank $7,179.05
Cash balance as per books $6,132.05
Add: electronic fund transfer received $1,720
Less: error ($391 - $319) -$72
Less: service charges - $25
Less: NSF charges - $576
Adjusted bank balance per books $7,179.05