Answer:
Effect on income= $2,420 decrease
Explanation:
Giving the following information:
It costs Blakeley Company $22.10 of variable
A buyer offers to purchase 2,200 units at $21.00 each
Because there is an unused capacity and it is a special offer, we will not take into account the fixed costs.
Effect on income= 2,200*(21 - 22.1)
Effect on income= $2,420 decrease
In this case, the company should reject the offer, because the unitary contribution margin is negative.
Accounting practice in the United States follows the generally accepted accounting principles (GAAP) developed by the Financial Accounting Standards Board (FASB), which is a nongovernmental, professional standards body that monitors accounting practices and evaluates controversial issues. The Securities and Exchange Commission (SEC) requires all publicly traded companies to periodically report their financial information.
A publicly held corporation must publish an annual report that contains the balance sheet, income statement, statement of cash flows, statement of retained earnings, and other financial information for analysis.
The following descriptions of the major financial statements and reports that a firm publishes. Identify the correct statement or report for each description.
Description :
a. Is required by the SEC and includes the audited document that shows the company's financial results for the past year and management's discussion about the future outlook and plans
b. Gives details about the firm's sales, costs, and profits for the past accounting period
c. Details changes in the capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earings.
d. Provides details about the flow of funds from operating, investing, and financing activities.
e. Summarizes a company's assets, liabilities, and stockholders' equity at a specific point in time.
Answer: a. Annual Report
b. Income statement
c. Statement of Shareholder Equity.
d. Cashflow Statement
e. Balance Sheet.
Explanation:
The Annual Report is a comprehensive report that aims to show stakeholders including the SEC what the company has been up to in the previous year. It analyzes the business's financial report and also the strategic goals of the business as well.
The Income Statement lets stakeholders know how the company's business transactions went for the previous period. It shows how much goods and services were sold as well as the expenses involved.
The Statement of Shareholder Equity aims to show how the business's dealings during the year have impacted the ownership of the company. It shows the Capital and the Retained Earnings.
The Cashflow Statement aims to show just how much actual cash that the business has. To do so it usually divides the cash transactions into Operating, Investing, and Financing activities.
The Balance Sheet summarizes the components of the Accounting Equation which includes Assets, Liabilities and Equity. This way a person can see at a glance how the business operates.
The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing:
20Y3
Nov.
21 Received from McKenna Outer Wear Co., on account, a $66,000, 60-day, 8% note dated November 21 in settlement of a past due account.
Dec.
31 Recorded an adjusting entry for accrued interest on the note of November 21. 20Y4
Jan.
20 Received payment of note and interest from McKenna Outer Wear Co.
Required:
Journalize the entries to record the transactions.
Answer:
20Y3
Nov. 21 :
Debit Notes receivable $66,000
Credit Accounts receivable $66,000
(To recognize notes receivable iro past due account)
Dec. 31:
Debit Interest revenue $161.33
Credit Interest receivable $161.33
(To record accrued interest on notes receivable)
Jan. 20:
Debit Cash $66,880
Credit Notes receivable $66,000
Credit Interest receivable $880
(To record payment of note and interest on Nov. 21 notes)
Explanation:
Note receivable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.
Interest revenue on the notes is calculated as: Principal x Interest Rate x Time
In this case, the total interest expense is $66,000 x 8%/12 x 2 months = $880.
Total interest expense to the Company as at December 31 is therefore $880 / 60 days x 11 days = $161.33.
Balt Company maintains a standard cost system. Last period, Balt spent $25,000 during the period to purchase 3,000 pounds of material H. The company used 5,000 pounds of Material H to produce 800 units of Product C8. The company has established a standard of 7 pounds of Material H per unit of C8, at a price of $7.50 per pound of material. The debit to direct materials control account isa. 25,000b. 22,500c. 41,667d. 37,500
Answer:
Balt CompanyDirect Materials Control Account:
Debit to the direct materials control account is
d. 37,500
Explanation:
a) Calculation:
Since 5,000 pounds were used at a standard price of $7.50, a debit to the direct materials control account would be $37,500 (5,000 x$7.50).
b) The direct materials control account is a memorandum account where the costs of direct materials are recorded to serve as a check and point of reconciliation with the subsidiary ledger of direct materials account. This debit shows the standard costs at actual production that is expensed for the period or during the process.
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 405,000 Beginning merchandise inventory $ 27,000 Purchases $ 270,000 Ending merchandise inventory $ 13,500 Fixed selling expense $
Missing information:
Fixed administrative expense $ 16,200 Variable selling expense $ 20,250 Variable administrative expense $ ? Contribution margin $ 81,000 Net operating income $ 24,300
1. Prepare a contribution format income statement.
2. Prepare a traditional format income statement.
3. Calculate the selling price per unit.
4. Calculate the variable cost per unit.
5. Calculate the contribution margin per unit.
Answer:
First we must determine cost of goods sold = $27,000 + $270,000 - $13,500 = $283,500
now we must find total variable costs = total sales - contribution margin = $405,00 - $81,000 = $324,000
variable administrative expenses = total variable costs - COGS - variable selling expense = $324,000 - $283,500 - $20,250 = $20,250
1. Prepare a contribution format income statement.
Total sales $405,000
Cost of goods sold $283,500
Gross contribution margin $121,500
Variable selling expense $20,250
Variable adm. expense $20,250
Contribution margin $81,000
Fixed period expenses:
Fixed selling expense $40,500Fixed administrative expense $16,200Net operating income $24,300
2. Prepare a traditional format income statement.
Total sales $405,000
Cost of goods sold $283,500
Gross profit $121,500
Operating expenses:
Selling expenses $60,750
Adm. expenses $36,450
Net operating income $24,300
3. Calculate the selling price per unit.
$4054. Calculate the variable cost per unit.
$3245. Calculate the contribution margin per unit.
$81The records of Pippins, Inc., included the following information: Net sales $ 1,000,000 Gross margin 475,000 Interest expense 50,000 Income tax expense 80,000 Net income 240,000 Compute the times interest earned ratio, rounded to the nearest decimal. 4.8 6.4 7.4 20.0
Answer:
Times interest earned (TIE) = 7.4 times
Explanation:
The times interest earned (TIE) ratio is a measure used to analyze the company's ability to meet its debt obligations on the basis of its current income level. The TIE ratio is calculated as follows,
Times Interest Earned (TIE) = EBIT / Total Interest expense
Where,
EBIT is the earnings of the company before interest and taxTo calculate TIE, we first need to determine the EBIT. EBIT can be calculated by backward working. Thus, EBIT is:
EBIT = Net income + tax + interest expense
EBIT = 240000 + 80000 + 50000
EBIT = $370000
Times interest earned (TIE) = 370000 / 50000
Times interest earned (TIE) = 7.4 times
n the summer there are many teenagers looking for minimum wage jobs, so firms are able to fill all open positions easily. This suggests that, at least during the summer, the supply of labor is:
Answer:
According to the analogy, the supply of unskilled labour is high during summer.
Explanation:
The total amount in hours that workers are willing to work at a given real wage rate is, in economics, referred to as the supply of labour. As a matter of mathematical accuracy, the amount of hours is usually adjusted for quality of result attained.
Cheers!
Jason Rodriguez works as a waiter in a Houston restaurant. His boss overhears Jason telling a co-worker during a break period that he thinks that the president ought to be impeached. The boss, a big supporter of the president, fires Jason on the spot. Jason thinks the boss violated his freedom of speech. Would you expect that Jason would be able to get his job back on that basis?
Answer:
No
Explanation:
It is mentioned in the question that the boss who is a big supporter of the president fired Jason, who works as a waiter in the restaurant
So based on the given situation, the first amendment is applied for the government employees as it become the first priority for everyone, not for the private employees
Hence, the answer is no
Congratulations! You just finished up your MHA. You are now making the big bucks!! You are pulling down $75,000 a year. Your estimated payroll taxes are 20%. You also have a small healthcare consultancy and you make $100 a month for your wonderful advice. You have a lot of expenses: You bought a new car - the car note is $350 a month. Gas for your car is $50 a month You have a mortgage of $850. Health insurance is $400 You love to eat out and you spent $300 a month in food. You have a student loan payment of $300 You have a credit card monthly statement of $1,100 How much do you have left at the end of this month?
Answer:
Balance available on hand at month-end is $1,750
Explanation:
Monthly gross salary= $6,250 ($75,000 / 12 month)
Less: Payroll Taxes $1,250 ($6,250 * 20%)
Net Monthly salary $5,000
Add: Monthly Consultancy Income $100
Monthly income available on hand $5,150 $5,150
Less: Monthly Car note $350
Monthly Car gas $50
Monthly mortgage $850
Monthly Health insurance $400
Monthly food spending $300
Monthly student loan payment $300
Monthly credit card payable $1,100
Total deductions $3,350 $3,350
Balance available on hand at month-end $1,750
The following monthly data are available for Sheridan Company which produces only one product: Selling price per unit, $38; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 7000 units. How much is the margin of safety for the company for June
Answer:
$199,500
Explanation:
The computation of the margin of safety is shown below:
As we know that
margin of safety = Actual sales - break even sales
where,
Actual sales is
= Actual sales units × Selling price per unit
= 7,000 units × $38
= $266,000
And, the break even sales is
= Fixed cost ÷ contribution margin per unit
= $42,000 ÷ ($38 - $14)
= $42,000 ÷ $24
= 1,750 units
Now the break even sales is
= Break even units × selling price per unit
= 1,750 units × $38
= $66,500
So, the margin of safety is
= $266,000 - $66,500
= $199,500
3. The impossible trinity Suppose the government of Iraq is deciding what kind of monetary policy and exchange rate regime to choose. The government wants to ensure stability in international trade and investment by pegging the Iraqi dinar to the U.S. dollar. Which of the following policy choices will achieve this goal? Check all that apply. Controlling the interest rate in the country without imposing restrictions on foreign exchange trading Controlling the interest rate in the country and imposing restrictions on foreign exchange trading Maintaining capital controls with no independent monetary policy
Answer:
Correct Answer is (B)
Explanation:
We look at the objectives the government has in mind to achieve;
- stability in international trade
- stability in investment
Which of the listed policies will achieve these goals?
- the tool here used to control international trade is foreign exchange trading
- the tool used to control investment is interest rate
To achieve stability in these 2 indicators, both tools should be controlled. Thus the monetary policy & exchange rate regime to choose here is:
Controlling the interest rate in the country and imposing restrictions on foreign exchange trading.
Option (C) won't suffice because an independent monetary policy is necessary.
If a business using the specific identification method of inventory has two items on hand at $300 each and purchases four items at $400 each, what is the value of inventory if two of the $300 items are sold
Answer:
The value of inventory is $1600.
Explanation:
The business has two inventory on hand that cost $300 each so total value of inventory = 2 × 300 = $600
The value of four items at $400 each = 4 × 400 = $1600
Total number of items = 2 + 4 = 6
Total value of 6 items = 600 + 1600 = $2200
The value of sold inventory = 2 × 300 = $600
The value of inventory = total value of inventory - The value of sold inventory
The value of inventory = $2200 - $600
The value of inventory = $1600
Bonita Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K.
In establishing the predetermined overhead rates for 2020, the following estimates were made for the year.
Department
D E K
Manufacturing overhead $990,000 $1,750,000 $1,080,000
Direct labor costs $1,237,500 $1,875,000 $675,000
Direct labor hours 150,000 125,000 60,000
Machine hours 600,000 750,000 120,000
During January, the job cost sheets showed the following costs and production data.
Department
D E K
Direct materials used $140,000 $126,000 $78,000
Direct labor costs $120,000 $110,000 $37,500
Manufacturing overhead incurred $99,000 $124,000 $79,000
Direct labor hours 8,000 11,000 3,500
Machine hours 34,000 45,000 10,400
Required:
a. Compute the predetermined overhead rate for each department.
b. Compute the total manufacturing costs assigned to jobs in January in each department.
c. Compute the under- or overapplied overhead for each department at January 31.
Answer:
a.Department D = $0.80 per direct labor cost, Department E = $14 per direct labor hour, Department K = $9 per machine hour.
b.Department D = $96,000, Department E = $154,000, Department K = $93,600
c.Department D = $ 3,000 Under-applied, Department E = $30,000 Over-applied, Department K = $14,600 Over-applied
Explanation:
Predetermined Overhead Rate is used to apportion Factory Overheads to Jobs or Products.
Predetermined Overhead Rate = Budgeted Overheads / Budgeted Activity
Department D = $990,000 / $1,237,500
= $0.80 per direct labor cost
Department E = $1,750,000 / 125,000
= $14 per direct labor hour
Department K = $1,080,000 / 120,000
= $9 per machine hour
Overheads Assigned to Jobs = Predetermined Overhead Rate × Actual Activity.
Department D = $0.80 × $120,000
= $96,000
Department E = $14 × 11,000
= $154,000
Department K = $9 × 10,400
= $93,600
If, Actual Overheads > Assigned Overheads = Under-applied
If, Actual Overheads < Assigned Overheads = Over-applied
Department D = $ 99,000 - $96,000
= $ 3,000 Under-applied
Department E = $154,000 - $124,000
= $30,000 Over-applied
Department K = $93,600 - $79,000
= $14,600 Over-applied
To create a bulleted list, Nathan should select the list first. Next, he should navigate to the of the Word window. After that, he should go to the command group. Then, he should click the picture that shows .
Answer: 3 tiny dots with tiny lines next to them.
Explanation: Because that is the icon you select to insert bullet points or a number system.
A $20,000 loan is to be amortized for 10 years with quarterly payments of $699.44. If the interest rate is 7%, compounded quarterly, what is the unpaid balance immediately after the sixth payment
Answer:
The answer is "17809.46"
Explanation:
Given:
P= $20,000
quarterly payment k= $699.44
interest rate quarterly r= 7%
[tex]r=\frac{7}{400}\\\\r= 0.0175[/tex]
n=6
Formula:
[tex]\ unpaid \ balance = P(1+r)^n-K\times \frac{(1+r)^n-1}{r}[/tex]
[tex]=20,000(1+0.0175)^6-699.44\times \frac{(1+0.0175)^6-1}{0.0175}\\\\=20,000(1.0175)^6-699.44\times \frac{(1.0175)^6-1}{0.0175}\\\\=20,000\times 1.10970235-699.44\times \frac{1.10970235-1}{0.0175}\\\\=22,194.047-699.44 \times \frac{0.10970235}{0.0175}\\\\=22,194.047-699.44 \times 6.26870571\\\\=22,194.047-4384.58352\\\\=17809.4635\\\\[/tex]
The final answer is "[tex]\bold{= 17809.46}\\[/tex]".
Evans Inc. had current liabilities at April 30 of $69,400. The firm's current ratio at that date was 1.7. Required: Calculate the firm's current assets and working capital at April 30. Assume that management paid $14,300 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made. (Round "Current ratio" answer to 2 decimal places.) Identify the changes, if any, to working capital and the current ratio that would be caused by the April 29 paym
Answer:
See explanation below
Explanation:
Given:
Current liabilities at April 30 of $69,400
Current ratio = 1.7
a) Calculate the firm's current assets and working capital at April 30:
Use the formula below to find the firm's current assets:
current ratio= current asset/current liability
current asset = current ratio × current liability
current asset = 1.7 × $69,400
Current asset = $117,980
For working capital:
Working capital= current assets-current liability
= $117,980 - $69,400
= $48,580
Working capital = $48,580
b) Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made:
New current assets = $117,980 + $14,300 = $132,280
New current liability = $69,400 + $14,300 = $83,700
Working capital = $132,280 - $83,700 = $48,580
Current ratio = 132,280/83700 = 1.58
c) There is no change in the working capital.
The current ratio will decrease by 0.12 (1.7 - 1.58) due to payment on 29th April
A book which cost $300.00 was sold
For $240.00. What was the loss
percentage
Answer:
20%
Explanation:
300-240= 60
60÷300×100%= 20%.
Prior to creating a network, it is important to: Identify the party responsible for each activity. Calculate the float for each activity. Understand the activity precedence. Identify all loops through activities.
Answer:
The correct answer to the following question will be Option C (Understand the activity precedence).
Explanation:
Networking is not only useful in the growth of a business or the improvement of one's personal life but could also play an important role throughout the social life benefit of the entire.Professional connections or networks can support one's career in certain aspects, whether someone is taking a job, obtaining a progression, or exploiting a pay raise. Nevertheless, to go through all things, clients, therefore, need to move beyond their usual environment or start socializing in a certain profession.The other given choices are not related to the given situation. So that Option C would be the appropriate one.
1- What are the goals of the Deposit Insurance Corporation? 2- what is the Income tax brackets? Thank you in advance. Regards.
Answer:
The deposit insurance corporation created in 1933 is responsible for insuring the deposits of the US banks in case of emergency. It is an independent federal agency. It was created to keep the financial system stable by promoting sound banking practises. It insures deposit amount upto $250,000 if the depositor is a member firm. The consumers should confirm whether heir institution is FDIC insured or not. Its main objective is to avoid "Great Depression " like situation by preventing bank runs.
Tax bracket is a range of income that is taxable. Tax brackets follow a progressive tax system in which the tax progressively increases as a persons income grows. People with low income either fall into low tax brackets or don't have to pay tax at all.
At the beginning of the period, the Grinding Department budgeted direct labor of $19,800 and property tax of $51,000 for 1,100 hours of production. The department actually completed 1,500 hours of production.
Required:
Determine the budget for the department, assuming that it uses flexible budgeting.
Answer:
Budget for the Grinding department is $78,000, assuming that it uses flexible budgeting.
Explanation:
Note: Fixed cost remain constant at any level of production
Budgeted Direct labor at 1,100 hours of production is
= Budgeted direct labor / hours
= 19,800 / 1,100
=$18 per hour
Direct labor cost at 1,500 hours of production is:
=1,500 * $18
=$27,000
Budget for the Grinding department at 1,500 hour of production is:
=Direct labor cost + Property tax
=$27,000 + $51,000
=$78,000
ete is a California resident who is serving in California when he is transferred to Virginia under Temporary Duty (TDY) assignment. His salary is $3,000 per month. Pete is transferred on April 1 of the current year. How much of his income is taxable in California
Answer:
$36,000
Explanation:
Temporary duty can't change anything when someone is domiciled in the state and a responsible resident of the state, therefore his whole income would be taxable as usual whether he is in the state or out of state.
Workings:
Financial year= 12 months
Monthly salary = $3,000
Taxable income= $3,000 x 12 months
Taxable income = $36,000
The balance in Ashwood Company's Accounts Payable account at December 31, 2016, was $1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2016. The invoice cost was $85,000, and the goods were shipped FOB shipping point on December 29, 2016. The goods were received on January 2, 2017. Goods shipped FOB shipping point on December 20, 2016, from a vendor to Ashwood were lost in transit. The invoice cost was $40,000. On January 5, 2017, Ashwood filed a $40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2016, from a vendor to Ashwood were received on January 6, 2017. The invoice cost was $20,000. What amount should Ashwood report as accounts payable on its December 31, 2016, balance sheet? a. $1,345,000 b. $1,325,000 c. $1,260,000 d. $1,285,000
Answer:
$1,325,000 is the amount to be recorded as accounts payable on Ashwood's report of 31 December, 2016 balance sheet
Explanation:
Here, we want to calculate the amount that Ashwood should report as accounts payable on its December 31, 2016 balance sheet.
The correct answer to this is adding together : The balance in Ashwood Company's Accounts Payable account at December 31, 2016 + Invoice cost of goods in transit from vendor on December 31, 2016 + invoice cost of goods lost in transit
From the question, we can identify the following;
Balance in Ashwood Company's Accounts Payable account at December 31, 2016 = $1,200,000
invoice cost of goods in transit from vendor on December 31, 2016 = $85,000
invoice cost of goods lost in transit = $40,000
Plugging these values into the equation, we have;
1,200,000 + 85,000 + 40,000 = $1,325,000
The owner’s initial investment consists of $38,600 cash and $45,980 in land. The company’s $18,550 equipment purchase is paid in cash. The accounts payable balance of $9,060 consists of the $3,830 office supplies purchase and $5,230 in employee salaries yet to be paid. The company’s rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $14,620 consulting fees earned. Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
Missing information:
ERNST CONSULTING
Income Statement
October 31. 202x
Revenues:
Consulting fees earned $15,600
Total revenues $15,600
Expenses:
Salaries expense $7,450
Rent expense $4,070
Telephone expense $810
Miscellaneous expenses $630
Total expenses $12,960
Net income $2,640
Cash dividends $2,530
Answer:
Ernst Consulting
Statement of Cash Flows
October 31, 202x
Cash flows from operating activities:
Cash received from customers $0
Cash paid for:
Rent expense -$4,070
Telephone expense -$810
Miscellaneous expenses -$630
Total cash flow from operating activities -$5,510
Cash flows from investing activities:
Cash paid for equipment -$18,550
Total cash flows from investing activities -$18,550
Cash flows from financing activities:
Cash investment from stockholders $38,600
Cash paid for dividends -$2,530
Total cash flows from financing activities $36,070
Net cash increase $12,010
Cash balance October 1, 202x $0
Cash balance October 31, 202x $12,010
Suppose that Tommy takes a workplace personality quiz that shows that he is highly creative. Store managers decide to transfer him to the produce department, where he is trained in cutting produce and displaying it on the shelves. Which approach to job design best characterizes this scenario?
Answer:
The Motivational approach
Note: Find an attached image of the complete question to this solution below.
Explanation:
Solution
In this scenario Tommy is one of the person in meat department that has specialized skill in cutting process that even neglect his pain making the cutting process.
The transferring to producing department make him to show the produced cutting meat to attract customers to the store.
That step taken in regards to Tommy by the store managers is a motivational approach.
Source: The research for the complete question was taken from quiz-let platform
On January 1 2021 Salvatore Company leased several machines from Nola Corporation under a three year operating lease agreement. The lease calls for semiannual payments of $15,000 each payable on June 30 and December 31 of each year. The machines were acquired by Nola at a cost of $90,000 and are expected to have a useful life of five years with no expected residual value Required Prepare the appropriate journal entries for the lessor from the beginning of the lease through the end of 2021. Of no entry is required for a transaction/event, select "No Journal entry required" in the first account field.)
Answer and Explanation:
The journal entries are shown below:
1. Equipment $90,000
To Cash $90,000
(Being the cost of the building is recorded)
For recording this we debited the equipment as it increased the assets and credited the cash as it decreased the assets
2. Cash $15,000
To Lease Revenue $15,000
(Being the recognition of revenue is recorded)
For recording this we debited the cash as it increased the assets and credited the lease revenue as it also increased the revenue
3. Cash $15,000
To Lease Revenue $15,000
(Being the recognition of revenue is recorded)
For recording this we debited the cash as it increased the assets and credited the lease revenue as it also increased the revenue
4. Depreciation $18,000 ($90,000 ÷ 5 years)
To Accumulated depreciation $18,000
(Being the depreciation expense is recorded)
For recording this we debited the depreciation as it increased the expenses and credited the accumulated depreciation as it decreased the assets
For a business credit card, most companies that issue credit, including Visa and Mastercard, specifically state their liability policies:
Only cover the first $50.00 of liability
Cover up to $500 of liability
Are the same as their business card accounts
Do not apply to business card accounts
Answer: Cover up to $500 of liability
Explanation:
When one suspect that there has been unauthorized transactions in ones accounts which could be due to fraud, such business or person can make a complaint as soon as possible.
As soon as the report is made, the person is no longer in charge of the unauthorized use of such card. In a case whereby the loss is reported within two days, the liability is limited to $50 but when the report is made within 60 days after ones statement has been sent to the person or business, this may lead to a liability of $500.
Cover upto liability of $500. If the report is made within 60 days of receiving statement that shows fradulent transactions. If it is not reported within 60 days then the liability is unlimited.
Laser World reports net income of $640,000. Depreciation expense is $49,000, accounts receivable increases $10,000, and accounts payable decreases $29,000. Calculate net cash flows from operating activities using the indirect method.
Answer:
$650,000
Explanation:
The computation of net cash flows from operating activities using the indirect method is shown below:-
Cash Flows from Operating Activities
Net income $640,000
Adjustment made
Add: Depreciation expense $49,000
Less: Increase in accounts receivable ($10,000)
Less: Decrease in accounts payable ($29,000)
Net cash flows from operating activities $650,000
The positive amount reflects the cash inflow and the negative amount reflects the cash outflow
Planet Food is currently operating at full capacity. The profit margin and the dividend payout ratio are held constant. Net working capital and fixed assets vary directly with sales. Sales are projected to increase by 6 percent. What is the external financing need
Answer:
The answer is $30
Note: Kindly find an attached copy or image of the complete question given below
Sources: I researched the complete question from Quizlet
Explanation:
Solution
Given that
The total assets projected = $8,850 × 1.06
= $9,381.00
Projected accounts payable = $1,300 × 1.06
= $1,378.00
Projected retained earnings = $3,810 + ($399 × 1.06)
= $4,232.94
Thus
External financing need = $9,381.00 - $1,378.00 -$1,640 -$2,100 - $4,232.94 = $30
Therefore the external financing need is $30.
Revise your worksheet to reflect the following transactions and updated values at the end of the accounting period, then answer the questions that follow. 7,200 1,400 9,900 1,100
1. Cash on hand at the company and not yet deposited at the bank.
2. EFT for monthly utility bill not yet recorded by the company.
3. Note collected by the bank and not yet recorded by the company.
4. Interest collected by the bank from note in #3 not yet recorded by the company.
5. A check witten for insurance expense for $110 was cashed. The check was recorded on the books for $190.
6. Checks written by the company but not yet processed by the bank.
7. Service fee charged by bank but not yet recorded by the company.
8. Customer checks determined by the bank to have nonsufficient funds. 3,100 100 2,700
Bank balance at the end of the period.
Company balance at the end of the period. 19,610 16,830 Required:
1-a. What is the revised
Cash balance at the end of the period?
Cash $ 23,710 1-b. Is the bank reconciliation in balance?
Yes
Nο
2-a. What is the balance in Cash if the entry to correct the insurance payment hasn't been made?
Cash 2-b. Would the bank reconciliation still be in balance?
Yes
No
3. Which statement below is true regarding the effect of the company incorrectly recording a customer deposit at $190,000 rather than $19,000?
No effect on the bank reconciliation.
The difference of $171,000 will be subtracted from the book balance.
The difference of $171,000 will be added to the book balance.
The bank balance will be increased by $190,000.
Answer:
1a. Revised Cash balance $23,710
1b. No. the Bank reconciliation is NOT in balance
2a.$23,630
2b.No. The bank reconciliation will still NOT be in balance
3.The difference of $171,000 will be subtracted from the book balance
Explanation:
1a.Preparation of the Revised Cash Book
Particular Debit Particular Credit
Unadjusted $16,830; EFT of Utility $1,400
Balance $9,900 ; Bil $100
Note Collected 1,100; Service Fee Charged $2,700
Interest on Note Collected 90 ; NSF Checks Dishonored $23,710
Excess of Insurance Expense 27,910; Revised Balance $27,910
Therefore the Revised Cash balance at the end of the period will be $23,710
1b.NO. The Bank reconciliation is NOT in balance because the revised balance is still not matched with the bank balance reason been that the amount of $23,710 is not equal to $19,610
2-a) In a situation where the entry to correct the insurance payment hasn’t been made, the balance of cash book will be :
$23,710 – $80 = $23,630
2-b) No. The bank reconciliation will still NOT be in balance because $23,630 is not equal to $19,610
3. If company incorrectly recording a customer deposit at $190,000 rather than $19,000, this increases the balance of cash book by $171,000. Therefore, the company subtracted the difference of $171,000 from the book balance
1a.Rectified Cash balance $23,710
1b.No. the Bank reconciliation is NOT in balance
2a.$23,630
2b.No.The bank reconciliation will always NOT be in balance
Prepare Bank reconciliation
1a. Now we Preparation of the Revised Cash Book is:
Particular Debit and Credit
Unadjusted $16,830; and EFT of Utility $1,400The Balance is $9,900; Bill is $100Then Note Collected 1,100; Service Fee Charged $2,700Now the Interest on Note Collected 90; NSF Checks Dishonored $23,710Then Excess of Insurance Expense 27,910; Revised Balance $27,910Hence the Revised Cash balance at the end of the period will be $23,7101b.NO. When The Bank reconciliation is NOT in balance because the adjusted balance is still not matched with the bank balance reasoning is that the amount of $23,710 is not equal to $19,610
2-a) In circumstances where the entry to rectify the insurance payment hasn’t been made, the balance of the cash book will be :
$23,710 – $80 = $23,630
2-b) No. When The bank reconciliation will still NOT be in balance because $23,630 is not equal to $19,610
3. If the company mistakenly registers a consumer deposit at $190,000 rather than $19,000, this increases the balance of the cash book by $171,000. Thus, the company subtracted the distinction of $171,000 from the book balance The distinction of $171,000 will be subtracted from the book balance
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Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. Currently, college tuition, books, fees, and other costs average $20,000 per year. On average, tuition and other costs have historically increased at a rate of 6% per year. Assuming that college costs continue to increase an average of 6% per year and that all her college savings are invested in an account paying 8% interest, then the amount of money she will need to have available at age 20 to pay for all four years of her undergraduate education is closest to ________.
Answer:
$256,571
Explanation:
College Graduation fee for four years in the present value
PV = $20,000 x 4 = $80,000
As historically the fee has risen by 6% we need to find future value when the baby will be 20 years old by using future value formula
Let's say
FV = Future value
PV = Present value
n = number of years
i = Interest
Workings
FV = PV x ((1+growth rate)^n)
FV = $80,000 x ( (1+0.06)^20)
FV = $256,571
As the bank interest rate is 8% the saving need to be deposited annualy can be calculated as
Savings = (FV x i) / ((1+i)^n)-1)
Savings = ($256,571 x 0.08) / ((1+0.08)^20)-1)
Savings = 20,525.68 / 3.66
Savings = $5,608
Testbank Multiple Choice Question 96 On June 30, 2021, when Bonita Industries's stock was selling at $66 per share, its capital accounts were as follows: Capital stock (par value $50; 58000 shares issued) $2900000 Premium on capital stock 580000 Retained earnings 4150000 If a 100% stock dividend were declared and distributed, capital stock would be $3480000. $5800000. $7656000. $2900000.
Answer:
$5800000
Explanation:
Stock dividend refers to a form of dividend payment whereby additional stock shares of the company are distributed to shareholders instead of paying the shareholders in cash.
Stock dividends are also known as stock spills and it increases the common stock par value by its declared percentage.
Since the a 100% stock dividend were declared and distributed, this would increase the common stock as follows:
Increase in common stock = $2,900,000 * 100% = $2,900,000.
Therefore, the new common stock would be:
New common stock = Existing common stock + Increase in common stock = $2,900,000 + $2,900,000 = $5,800,000.
Therefore, If a 100% stock dividend were declared and distributed, capital stock would be $5,800,000.