Answer:
Huffman Pharmaceuticals
The percentage that should be assigned to Gross Profit, using trend analysis, is:
= 42%.
Explanation:
a) Data and Calculations:
Income Statements 12/31/2017 12/31/2016
Sales Revenue $598,000 $724,000
Cost of Goods Sold 337,000 427,000
Gross Profit 261,000 297,000
Operating Expenses 137,000 146,000
Operating Income 124,000 151,000
Other Income (Expense) 60,000 23,000
Income before Tax 184,000 174,000
Income Tax Expense 71,000 76,000
Net Income $113,000 $98,000
Income Statements 12/31/2017 12/31/2016
Sales Revenue $598,000 $724,000
Cost of Goods Sold 337,000 427,000
Gross Profit 261,000 297,000
Ratio of Gross profit to
Sales Revenue
2017 = $261,000/$598,000 * 100 = 43.65% = 44%
2016 = $297,000/$724,000 * 100 = 41%
Average Gross profit ratio for the two years = 42.5% (44 + 41)/2.
b) Huffman's trend analysis is the use of its past financial performance indices to predict its future financial performances. Past performances are expressed in percentages, forming the basis for predicting and comparing future performances of an entity.
A manufacturing company accumulates the following data on variable overhead: Actual cost incurred: $61,000; Actual allocation base times the standard variable rate: $64,000; Applied variable overhead: $60,000. The variable overhead efficiency variance is:
Answer: $4000U
Explanation:
From the information given in the question, the variable overhead efficiency variance is the difference between the actual allocation base times the standard variable rate and the applied variable overhead. This will be:
= $64000 - $60000
= $4000U
Therefore, the variable overhead efficiency variance is $4000U
On December 31, 2016, Beckford Company issues 150,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. The fair value of the SARs is estimated to be $4 per SAR on December 31, 2017; $1 on December 31, 2018; $10 on December 31, 2019; and $9 on December 31, 2020. The service period is 4 years, and the exercise period is 7 years.
Instructions:
(a) Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.
(b) Prepare the entry at December 31, 2014, to record compensation expense, if any, in 2014.
(c) Prepare the entry on December 31, 2014, assuming that all 150,000 SARs are exercised.
Answer: See attachment and explanation
Explanation:
(a) Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.
The above has been attached.
(b) Prepare the entry at December 31, 2014, to record compensation expense, if any, in 2014.
31/12/2014:
Debit Compensation expense = $225000
Credit Stock Appreciation Plan = $225000
(To record the compensation expense)
(c) Prepare the entry on December 31, 2014, assuming that all 150,000 SARs are exercised.
31/12/2014:
Debit: Stock Appreciation Plan = $1350000
Credit Cash = $1350000
(To record the realization of cash exercised)
How are a startup's financing requirements estimated
Answer:
How are Startups Financing Requirements Estimated?
1. Make Use of a Startup Work Sheet to be Able to Plan the Initial Financing.
2. Focus on the Expenses versus Assets. Another way for startups to estimate their financing requirements is by means of focusing on the expenses versus assets.
3. Similar Articles.
4. Cash Balance Prior to the Starting Date.
Explanation:
wo firms, A and B, each currently emit 100 tons of chemicals into the air. The government has decided to reduce the pollution and from now on require a pollution permit for each ton of pollution emitted into the air. The government gives each firm 50 pollution permits, which it can either use of sell to the other firm. It costs Firm A $200 for each ton of pollution that it eliminates before it is emitted into the air, and it cots Firm B $100 for each ton of pollution that it eliminates before it is emitted into the air. If the two firms have the same bargaining power, what would be the gains from trade for Firm B
Answer:
Firm A will buy all of the firm B's pollution permits. Each one will cost between $100 and $200.
Explanation:
The firm B will gain from the trade of pollution permits. Firm A will need higher pollution permits since it emits 100 tons of chemicals into air and the cost for eliminating each ton is $200. This cost is higher than the cost to Firm B which is $100 only. Firm A will buy all the pollution permits from Firm B and there will advantage for the Firm B to gain from the trade.
in your own opinion, what is the advantages and disadvantages of having a business website.
Answer:
There are several advantages and disadvantages to having a website for your business or limited company. In the modern age, more and more businesses are getting online. As I mentioned in a previous post, there were around 227,225,642 websites online in September 2010. If you don’t take your business onto the World Wide Web, you could miss out on potential customers, sales and profits. According to data collected by the Office for National Statistics – internet sales were up to £473million (a week) in August 2010 (Retail Sales Statistical Bulletin – August 2010). So having a website designed for your small business or limited company is just one important step towards getting a slice of the internet pie.
To be effective, an item used as money should serve several functions. Select the statement that best describes money's function as a standard of deferred payment.
a. That a currency can be used to express the value goods and services that are both relatively expensive and goods and services that are relatively cheap.
b. That the purchasing power of a currency is relatively stable over time.
c. That people are willing to accept a currency in the future as compensation for debts accrued earlier.
d. That a currency is widely accepted in exchange for goods and services and therefore makes economic transactions easier.
Answer:
c. That people are willing to accept a currency in the future as compensation for debts accrued earlier.
Explanation:
Money defines the legal tender i.e. offically issued and that involved the notes, currencies, coins that are circulated via medium of exchange that govern by the government.
So here the people would to accept the currency in the future that become compensation for the debt that accrued earlier
Hence, the option c is correct
Maplewood Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392,000 Maplewood has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. If Maplewood wants to break even on the order, what should the unit sales price be
Answer:
$8.1
Explanation:
Variable cost to be incurred for the offer = ($420,000/70,000) * 3,000
Variable cost to be incurred for the offer = $6 * 3,000
Variable cost to be incurred for the offer = $18,000
Additional Fixed cost = $6,300
Total Cost incurred for the offer = Variable cost to be incurred for the offer + Additional Fixed cost
Total Cost incurred for the offer = $18,000 + $6,300
Total Cost incurred for the offer = $24,300
Unit Sales Price (Break even) = Total Cost incurred for the offer / 3,000 units
Unit Sales Price (Break even) = $24,300 / 3,000 units
Unit Sales Price (Break even) = $8.1
The cost of materials transferred into the Rolling Department of Keystone Steel Company is $510,000 from the Casting Department. The conversion cost for the period in the Rolling Department is $81,200 ($54,700 factory overhead applied and $26,500 direct labor). The total cost transferred to Finished Goods for the period was $553,200. The Rolling Department had a beginning inventory of $25,000.
Required:
a. Journalize the cost of transferred-in materials.
b. Journalize the conversion costs.
c. Journalize the costs transferred out to Finished Goods.
d. Journalize the costs transferred out to Finished Goods.
e. Determine the balance of Work in Process—Rolling at the end of the period.
Answer:
Part a
Debit : Work in Process - Rolling Department $510,000
Credit : Work in Process - Casting Department $510,000
Part b
Debit : Work in Process - Overheads $54,700
Debit : Work in Process - Direct labor $26,500
Credit : Accounts Payable $81,200
Part c
Debit : Finished Goods Inventory $553,200
Credit : Work in Process - Rolling Department $553,200
Part d
Debit : Finished Goods Inventory $553,200
Credit : Work in Process - Rolling Department $553,200
Part e
$18200 credit
Explanation:
Ending Balance = Opening Balance + Additions - Transfers out
therefore,
Rolling Department balance = $25,000 + $510,000 - $553,200
= ($18200)
Also see journal prepared above.
Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones.
Pictech Pricing
High Low
Flashfone Pricing High 11, 11 2, 18
Low 18, 2 10, 10
For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $18 million, and Pictech will earn a profit of $2 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.
a. If Flashfone prices high, Pictech will make more profit if it chooses a (high,low) _____ price, and if Flashfone prices low, Pictech will make more profit if it chooses a(high,low)_______ price.
b. If Pictech prices high, Flashfone will make more profit if it chooses a(high,low)______price, and if Pictech prices low, Flashfone will make more profit if it chooses a (high,low) ______ price.
c. Considering all of the information given, pricing high (is, is not) ______ a dominant strategy for both Flashfone and Pictech.
Answer:
Flashfone and Pictech
a. If Flashfone prices high, Pictech will make more profit if it chooses a (high,low) __low___ price, and if Flashfone prices low, Pictech will make more profit if it chooses a(high,low)___low____ price.
b. If Pictech prices high, Flashfone will make more profit if it chooses a(high,low)__low____price, and if Pictech prices low, Flashfone will make more profit if it chooses a (high,low) __low____ price.
c. Considering all of the information given, pricing high (is, is not) _is not_ a dominant strategy for both Flashfone and Pictech.
Explanation:
a) Data and Calculations:
Pictech Pricing
High Low
Flashfone Pricing High 11, 11 2, 18
Low 18, 2 10, 10
b) A dominant strategy exists if Pictech or Flashfone would implement a particular strategy that benefits it no matter what the other firm does.
Q 9.20: City Mission is a not-for-profit organization that provides hot meals, living quarters, and showers for homeless people. Based on their yearly budget, they expect to spend $450,000 on food expenses, $350,000 on housing expenses, $280,000 on staff salaries, $90,000 on utilities, and $118,000 on other expenses. How much will City Mission need to raise in donations
Answer:
at least $1,288,000 in donation
Explanation:
With regards to the above information, we would add up all the expenses to arrive at how much donation that need City Mission needs to raise.
= Expenses on food + Housing expenses + Staff salaries + Utilities + Other expenses
= $450,000 + $350,000 + $280,000 + $90,000 + $118,000
= $1,288,000
The above is a large sum of money to raise only from donations, and by right a level or various levels of government should help pay for these expenses as no one go homeless either that or provide low cost homes for the homeless.
Andrea has prepared the following list of statements about corporations. Identify whether each statement is true or false. 1. A corporation is an entity separate and distinct from its owners. select an option 2. As a legal entity, a corporation has most of the rights and privileges of a person. select an option 3. Most of the largest U.S. corporations are privately held corporations. select an option 4. Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued. select an option 5. The net income of a corporation is not taxed as a separate entity. select an option 6. Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts. select an option 7. The transfer of stock from one owner to another requires the approval of either the corporation or other stockholders. select an option 8. The board of directors of a corporation legally owns the corporation. select an option 9. The chief accounting officer of a corporation is the controller. select an option 10. Corporations are subject to fewer state and federal regulations than partnerships or proprietorships.
Answer:
1. TRUE.
A corporation truly is separate from its owners.
2. TRUE.
As a result of this separation, it has most of the rights and privileges of a person.
3. FALSE.
Most of the largest American companies are public held corporations which is how they got the resources needed for expansion.
4. TRUE.
As corporations are separate entities, they can do all these things.
5. FALSE.
The net income of a corporation is taxed as separate from the income of the owners.
6. FALSE.
Creditors only have a legal claim to the assets of the corporation and not its owners because they are separate entities.
7. FALSE.
The transfer of stock requires the permission of the stockholder selling the stock and the party buying. This is a two party transaction that does not require company approval.
8. FALSE.
The shareholders own the corporation. The Board of Directors simply represent the shareholders.
9. TRUE.
The Chief Accounting Officer truly is the controller.
10 . FALSE.
Corporations are subject to more regulations than partnerships and proprietorships.
Dream House Builders, Inc. applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of $20,000. On January 31, the direct labor for this job equals $2,700.
Required:
Write the journal entry.
Answer:
Explanation:
To solve this question, we need to calculate the predetermined overhead rate first and this will be:
= Estimated overhead / Direct labor cost
= $20,000 / $100,000
= 20% of cost of direct labor
Then we calculate the factory overhead which will be:
= Direct Labor × Predetermined overhead rate
= $2700 × 20%
= $540
Then, the journal entry will be:
31 Dec:
Debit Work in Process $540
Credit: Factory overhead $540
(To record overhead applied).
how much should a charm bracelet be with 1 tassel and mermaid tail.
Answer: The cost should be around $6 at least
Explanation:
Answer:
any where from 10 to 24 dollars. If it super lux maybe 50 something
Explanation:
During lunch time, customers arrive at a postal office at a rate of lambda equals 36 per hour. The interarrival time of the arrival process can be approximated with an exponential distribution. Customers can be served by the postal office at a rate of mu equals 45 per hour. The service time for the customers can also be approximated with an exponential distribution. For each of the following questions, show your work and use the right notation.
Required:
a. Determine the utilization factor.
b. Determine the probability that the system is idle, i.e., no customer is waiting or being served.
c. Determine the probability that exactly one customer is in the system, i.e., no customer is waiting but one is served.
Answer:a) utilization factor, P =4/5
b)Probability that the system is idle, P₀=1/5
C) the probability that exactly one customer is in the system,P ₁=4/25
Explanation:
A)
From the question,
Customer arrives at the rate of λ equal 36 per hour
Also,
Customers can be served by the postal office at a rate of μ equals 45 per hour
Therefore, we have that
utilization factor. P = λ / μ
where
λ = 36 / hour
μ = 45 / hour
P= 36 / 45
P= 4/5
The utilization factor is 4/5
b) the probability that the system is idle, i.e., no customer is waiting or being served.
Probability that the system is idle P₀ =1 - P
1 - 4/5
=1/5
C) the probability that exactly one customer is in the system, i.e., no customer is waiting but one is served.
probability that exactly one customer is in the system,P ₁=(λ/μ)¹ x (1-λ/μ)
(36 / 45) x (1-36 / 45)
4/5 x (1-4/5)
4/5 x 1/5
=4/25
The D. Dorner Farms Corporation is considering purchasing one of two fertilizer-herbicides for the upcoming year. The more expensive of the two is better and will produce a higher yield. Assume these projects are mutually exclusive and that the required rate of return is 10 percent. Given the following free cash flows:
Product A Product B
Initial outlay -$5000 -$5000
Inflow year 1 700 6,000
Required:
a. Calculate the NPV of each project.
b. Calculate the PI of each project.
c. Calculate the IRR of each project.
d. If there is no capital-rationing constraint, which project should be selected? If there is a capital-rationing constraint, how should the decision be made?
Question Correction:
The question stated that there is a more expensive fertilizer-herbicide. Therefore, their initial outlays cannot be equal as stated. Instead, the correct cash flows, including initial outlays are:
Product A Product B
Initial outlay -$500 -$5000
Inflow year 1 700 6,000
Answer:
The D. Dorner Farms Corporation
Product A Product B
a. NPV = $136 $454
b. PI = 1.272 1.091
c. IRR = 27.2% 9.08%
d. If there is no capital-rationing constraint, Project B should be chosen despite its poor PI and IRR performances, but for returning a larger NPV.
e. If there is a capital-rationing constraint, Project A should be chosen because of its more impressive PI and IRR performances.
Explanation:
a) Data and Calculations:
Required rate of return for the projects = 10%
Present factor of 10% for 1 year = 0.909
Free cash flows:
Product A Product B
Initial outlay -$500 -$5000
Inflow year 1 700 6,000
Present values:
Product A Product B
Initial outlay -$500 -$5000
Inflow year 1 636 5,454
NPV = $136 $454
b) PI (Profitability Index) is a useful tool in capital budgeting which measures the profit potential of a project in order to ease decisions. It is computed by dividing the present value of cash inflows by the initial investment cost. Another formula is: 1 + (NPV/Initial outlay).
Therefore, the PI for each project is calculated as follows:
PI = 1+ (NPV/Initial outlay)
Product A Product B
PI = 1 + ($136/$500) 1 + ($454/$5,000)
= 1.272 1.091
IRR (Internal Rate of Return) = NPV/Initial Outlay
Product A Product B
IRR = $136/$500 * 100 $454/$5,000 * 100
= 27.2% 9.08%
On January 1, 2020, Blue Inc. had cash and common stock of $62,340. At that date, the company had no other asset, liability, or equity balances. On January 2, 2020, it purchased for cash $22,990 of debt securities that it classified as available-for-sale. It received interest of $4,480 during the year on these securities. In addition, it has an unrealized holding gain on these securities of $5,100 net of tax. Determine the following amounts for 2020: (a) net income, (b) comprehensive income, (c) other comprehensive income, and (d) accumulated other comprehensive income (end of 2020).
Answer:
(a) Net income = $3,000
(b) Comprehensive income = $7,000
(c) Other comprehensive income = $4,000
(d) Accumulated other comprehensive income = $4,000
Explanation:
This question is based on multi-step income statement. Therefore, some of the elements of the multi-step income statement are employed in answering this question.
(a) net income
This can be calculated as follows:
Net income = Operating income + Total other income and expense – Tax expense ………… (1)
Where, based on information in the question, we have:
Operating income = Not available = 0
Total other income and expense = Interest income = $3,000
Tax expense = Not available = 0
Substituting the values into equation (1), we have:
Net income = 0 + $3,000 – 0 = $3,000
(b) comprehensive income
This can be calculated as follows:
Comprehensive income = Net income + Other comprehensive income …... (2)
Where:
Net income = $3,000
Other comprehensive income = Unrealized holding gain on securities = $4,000
Substituting the values into equation (2), we have:
Comprehensive income = $3,000 + $4,000 = $7,000
(c) other comprehensive income
As already stated in part (b) above, we have:
Other comprehensive income = Unrealized holding gain on securities = $4,000
(d) accumulated other comprehensive income (end of 2020).
As there is no other income from the question, this implies that:
Accumulated other comprehensive income = Unrealized holding gain on securities = $4,000
Classical economists support which amount of
government intervention into the economy?
A. limited
B. negligent
C. large
Your boss has asked you to obtain marketing feedback on one of the products for your company produces. But people are less likely to respond honestly if they know it’s the company requesting the information. So your boss tells you to use a fake marketing research name. Would you follow your boss’s direction? Why or why not?
Answer:
no I won't follow my boss
because I don't use Fake information
6. Problems and Applications Q6 Suppose the Federal Reserve's policy is to maintain low and stable inflation by keeping unemployment at its natural rate. However, the Fed believes that the natural rate of unemployment is 4 percent when the actual natural rate is 5 percent. If the Fed bases its policy decisions on its belief, there will be a
Answer: Rising trend
Explanation:
If the actual natural rate is 5%, it would be higher than the natural rate of 4%. This would prompt the Fed to act in such a way as to reduce unemployment in the economy. To do this, they would embark on an expansionary monetary policy to get the economy growing so that more people can be employed.
When there is more money in the economy though, people will have more to buy goods and services and this increase in demand will cause inflation to rise to reflect that there is more demand than supply.
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy:
Direct materials: 6 microns per toy at $1.50 per micron
Direct labor: 1.3 hours per toy at $21 per hour
During July, the company produced 3,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 25,000 microns were purchased at a cost of $1.48 per micron. 5,000 of these microns were still in inventory at the end of the month. Direct labor: 4,000 direct labor-hours were worked at a cost of $88,000.
Required:
Compute the variances for July.
Answer and Explanation:
The computation of the variance is shown below;
a) Material price variance is
= (Standard price - actual price) × actual quantity
= ($1.5 - $1.48) × 25000
= $500 F
b. Material quantity variance is
= (Standard quantity - actual quantity) × Standard price
= (3000 × 6 - 20,000) × 1.5
= $3,000 U
c) Labor rate variance is
= (Standard rate - actual rate) × actual hours
= ($21 × 4000 - $88,000)
= $4,000 U
d. Labor efficiency variance is
= (Standard hour - actual hour) × Standard rate
= (3000 × 1.3 - 4000) × 21
= $2,100 U
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $770,000; Allowance for Doubtful Accounts has a credit balance of $7,000; and sales for the year total $3,470,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $32,200. a. Determine the amount of the adjusting entry for uncollectible accounts. $fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts $fill in the blank 3 Bad Debt Expense $fill in the blank 4 c. Determine the net realizable value of accounts receivable.
Answer:
A. $25,200
B. Accounts Receivable $770,000
Allowance for Doubtful Accounts $32,200
Bad Debt Expense $25,200
C. $744,800
Explanation:
a. Calculation to Determine the amount of the adjusting entry for uncollectible accounts using this formula
Uncollectible accounts Adjusting entry= Allowance for Doubtful Accounts - Credit balance on Allowance for doubtful accounts
Let plug in the formula
Uncollectible accounts Adjusting entry=$32,200 - $7,000
Uncollectible accounts Adjusting entry= $25,200
Therefore the amount of the adjusting entry for uncollectible accounts is $25,200
B. Based on the information given the adjusted balances of Accounts Receivable will be $770,000
Based on the information given the adjusted balances of Allowance for Doubtful Accounts will be $32,200
Bad Debt Expense = $32,200 - $7,000
Bad Debt Expense= $25,200
c. Calculation to Determine the net realizable value of accounts receivable
Using this formula
Net realizable value of accounts receivable = Accounts receivables - Bad debt
Let plug in the formula
Net realizable value of accounts receivable= $770,000 - $25,200
Net realizable value of accounts receivable=$744,800
Therefore Net realizable value of accounts receivable is $744,800
At the beginning of his current tax year, Eric bought a corporate bond with a maturity value of $25,000 from the secondary market for $17,800. The bond has a stated annual interest rate of 8 percent payable on June 30 and December 31, and it matures in five years on December 31. Absent any special tax elections, how much interest income will Eric report from the bond this year and in the year the bond matures
Answer: See explanation
Explanation:
Based on the information given in the question, the interest income reported this year will be:
= ($25000 × 8%/2) × 2
= $25000 × 0.04 × 2
= $2000
The interest income that will be reported in the year the bond matures will be:
= $2000 + ($25000 - $17800)
= $2000 + $7200
= $9200
William is preparing to file his tax return. Which two items are necessary to complete his tax return?
W-2 form from an employer
driver's license
receipts for expenses taken as deductions or credits
copy of a birth certificate
voter registration card
employment verification
Answer:
W-2 form from an employer, Receipts for expenses taken as deductions or credits
Explanation:
Got it right on Plato
9. The NOI for a small income property is expected to be $150,000 for the first year. Financing will be based on a 1.2 DCR applied to the first year NOI, will have a 10 percent interest rate, and will be amortized over 20 years with monthly payments. The NOI will increase 3 percent per year after the first year. The investor expects to hold the property for five years. The resale price is estimated by applying a 9 percent terminal capitalization rate to the sixth-year NOI. Investors require a 12 percent rate of return on equity (equity yield rate) for this type of property. a. What is the present value of the equity interest in the property
Answer:
a. The present value of the equity interest in the property is:
= PV = $1,096,338
Explanation:
a) Data and Calculations:
Debt Coverage Ratio = 1.2
Debt interest = $150,000/1.2 = $125,000
Interest rate = 10%
Therefore, total financing or debt obtained = $125,000/10% = $1,250,000
NOI for the first year = $150,000
NOI for other years = 3% per year after the first year.
Holding period of property = 5 years
Therefore, expected NOIs for the second to fifth year are calculated as follows:
Net operating income (NOI):
First Year = $150,000
Second Year = $154,500 ($150,000 * 1.03)
Third Year = $159,135 ($154,500 * 1.03)
Fourth Year = $163,909 ($159,135 * 1.03)
Fifth Year = $168,826 ($163,909 * 1.03)
Sixth year NOI = $173,891 ($168,826 * 1.03)
Terminal capitalization rate = 9%
Resale price = NOI of the sixth year/Terminal cap rate
= $173,891/9% = $1,932,122
The present value of the equity interest in the property:
From an online financial calculator:
N (# of periods) 5
I/Y (Interest per year) 12
PMT (Periodic Payment) 0
FV (Future Value) $1,932,122
Results
PV = $1,096,337.91
Total Interest $835,784.09
Ann Company borrowed $240,000 to buy an equipment on January 1, 2019, and signed a 7% instalment note requiring annual equal payments, including principal and interest at the end of every year for 15 years. Rounded to the nearest dollar, determine the balance in the Instalment Note Payable account after making the first annual payment.
Answer:
$2,000
Explanation:
Payment include repayment of Capital Amount and Payment of Interest expense
Therefore the balance in the Instalment Note Payable account after making the first annual payment is
What is the relationship between property and financial claims
Additionally, as the price level rises, the impact on the domestic interest rate will cause the real value of the dollar torise in foreign exchange markets. The number of domestic products purchased by foreigners (exports) will thereforefall , and the number of foreign products purchased by domestic consumers and firms (imports) willrise . Net exports will thereforefall , causing the quantity of domestic output demanded tofall . This phenomenon is known as theexchange rate effect
Answer:
rise, fall, rise, fall, fall, exchange rate
Explanation:
When there is a change in the level of price it will cause the real value to change as well. This is due to the fact that real value is basically relative price i.e., nominal value adjusted by inflation.
This rise in price effects the demand for exports, which in return falls due to higher goods rates. And the effect is opposite for imports which would now rise. The combination effect of imports and exports results in the change in the net exports which would also fall due to rise in imports and fall in the exports. Overall, this effect is known as the exchange rate effect.
Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here.
New Office Equipment
1. List price: $41,900; terms: 2/10 n/30; paid within discount period.
2. Transportation-in: $860. Installation: $510.
3. Cost to repair damage during unloading: $431.
5. Routine maintenance cost after six months: $110.
Basket Purchase of Copier, Computer, and Scanner for $51,000 with Fair Market Values
1. Copier $22,755.
2. Computer $6,765.
3. Scanner $31,980.
Land for New Warehouse with an Old Building Torn Down
1. Purchase price, $82,400.
2. Demolition of building, $4,750.
3. Lumber sold from old building, $1,800.
4. Grading in preparation for new building, $7,700.
5. Construction of new building, $217,000.
Required:
In each of these cases, determine the amount of cost to be capitalized in the asset accounts.
Answer:
New Office Equipment $42,863
Basket Purchase Of Copier, Computer, Scanner $61,500
Land For New Warehouse $310,050
Explanation:
Calculation to determine the amount of cost to be capitalized in the asset accounts
NEW OFFICE EQUIPMENT
Amount of cost to be capitalised in the asset accounts = $41,900*0.98+$860+$510+$431
Amount of cost to be capitalised in the asset accounts =$41,062+$860+$510+$431
Amount of cost to be capitalised in the asset accounts =$42,863
BASKET PURCHASE OF COPIER, COMPUTER AND SCANNER
Amount of cost to be capitalised in the asset accounts = $22,755 + $6,765 + $31,980
Amount of cost to be capitalised in the asset accounts= $61,500
LAND FOR NEW WAREHOUSE with an old building torn down
Amount of cost to be capitalised in the asset accounts = $82,400 + $4,750 - $1,800 + $7,700 + $217,000
Amount of cost to be capitalised in the asset accounts = $310,050
Therefore The Amount of cost to be capitalised in the asset accounts are:
New Office Equipment $42,863
Basket Purchase Of Copier, Computer, Scanner $61,500
Land For New Warehouse $310,050
You send out 20,000 emails. Of those, 6% are opened. Of those, 9% click on a link to register for something. Of those who clicked the link, 30% complete the registration. How many people completed the registration?
Paid $54,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $270 cash per truck for the cost of their annual tune-ups. Paid $216 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $303,750 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record the four transactions from part 1.
Answer:
see explanation
Explanation:
revenue expenditure is cost that improves a capital asset
capital expenditure is cost incurred to maintain daily operations