Answers
Answer:
d. Controlling
Explanation:
As we know that
There are fives principles of management that include planning, organizing, staffing, directing and controlling
The controlling is the last step of the management principles in which the firm compared its actual performance with the standard one so that if there is an error that needs to be checked and according to that corrective actions are taken
Therefore in the given case, Lauren should add controlling techniques for generating the ideas
Related Questions
Western Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:
Answers
Answer:
$2,500
Explanation:
Opening balance $12,000
Cash receipts $30,000
Cash disbursement ($34,500)
Closing balance $7,500
Minimum cash balance $10,000
Borrowing amount(1$0,000-$7,500) $2,500
To maintain $10,000 cash balance western company need to borrow $2,500($10,000-$7500)
Deb has found it very difficult to repay her loans. Because of these difficulties, the bank decided to forgive one of her most recent loans, an amount of $73,500. After the loan was discharged, Deb had total assets of $264,000 and her remaining loans totaled $255,000. What amount must Deb include in her gross income
Answers
Answer:
$9,000
Explanation:
Calculation of the amount that Deb must include in her gross income
Total assets $264,000 -Remaining loans $255,000 =$9,000
Therefore the amount that Deb must include in her gross income would be $9,000. Hence a discharge of indebtedness will not be taxable in a situation where the taxpayer is insolvent before and after the debt might have been forgiveness and in a situation where the the discharge of indebtedness tend to makes the taxpayer solvent, the taxpayer will tend ro recognizes the taxable income to the extent of his solvency.
Knowledge Check 01 On December 1, Altona Winery sells $100,000 of its accounts receivable and is charged a 5 percent factoring fee. Prepare the December 1 journal entry for Altona by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answers
Answer:
December 1, 202x, accounts receivables are factored to X company.
Dr Cash 95,000
Dr Factoring fees expense 5,000
Cr Accounts receivable 100,000
Explanation:
Instead of using a factoring fees expense account, some people like to use other accounts like: Loss on factoring account, Interest expense account, or others, but they all basically represent the same thing and they all decrease income.
In this example, the factoring was done without recourse, which means that the factoring company paid the full amount of the accounts receivable (minus their fee) when the transaction was made.
DSO and accounts receivable Ingraham Inc. currently has $205,000 in accounts receivable, and its days sales outstanding is 71 days. It wants to reduce its DSO to 20 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365- day year.
Answers
Answer:
$49,084.51
Explanation:
days of sales outstanding (DSO) = accounts receivable / average daily sales
71 days = $205,000 / (total sales / 365 days)
total sales / 365 days = $205,000 / 71 days
total sales = ($205,000 / 71 days) x 365 days = $1,053,873.24
after the change, annual sales will decrease by 15%:
$1,053,873.24 x (1 - 15%) = $895,792.25
average sales per day = $895,792.25 / 365 = $2,454.23 per day
new DSO = accounts receivable / average sales per day
20 days = accounts receivable / $2,454.23 per day
accounts receivable = $2,454.23 per day x 20 days = $49,084.51
Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:
Answers
The question is incomplete. Here is the complete question.
The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:______
Answer:
$11.5
Explanation:
The data that was gotten from Keller company stockholders equity account include:
Amount shares in common stock is 20,000 shares
The number of issued shares is 10,000
Number of outstanding shares is 9,000
The excess paid-in capital is $100,000
The common stock is 50,000
The retained earnings is 25,000
Treasury stock is 11,500
The first step is to calculate the amount of shares that was acquired in the treasury stock
= Number of issued shares-number of outstanding shares
= 10,000-9,000
= 1,000
Therefore, the cost per share of the stock in the treasury can be calculated as follows
= Treasury stock value/amount of shares acquired
= 11,500/1,000
= 11.5
Hence the cost per share of the treasury stock is $11.5
Which of the following are restrictive covenants often used to protect the firm’s bond value and bondholder wealth? Check all that apply. Provisions that require firing the firm’s CEO whenever the firm’s bond price decreases by more than 15% Provisions that prohibit reducing the firm’s liquidity ratio below specified levels Provisions that prohibit the borrower from increasing debt ratios above specified levels Provisions that require issuing new debt securities whenever interest rates drop below 5%
Answers
Answer:
1. Provisions that prohibit reducing the firm’s liquidity ratio below specified levels.
2. Provisions that prohibit the borrower from increasing debt ratios above specified levels.
Explanation:
A bond refers to a fixed income instrument that signifies the indebtedness of the borrower to the bond issuer (investor or creditor). Basically, they are loans that are given to government or large corporations.
This simply means that, when a bondholder or creditor purchases a bond, an agreed amount of money is being borrowed to the bond issuer as a loan. As a result of the loan being borrowed, the bond issuer is required to pay an interest with a return of principal at maturity to the bondholder (investor or creditor).
A bond covenant can be defined as a standard and legally binding agreement between an investor or creditor (bondholder) and the issuer of a bond (bond issuer) in order to protect their respective interests. The bond covenant is classified into two (2) categories;
1. Positive or affirmative covenants: which states certain requirements that must be met by the bond issuer.
2. Negative or restrictive covenants: which states certain actions that are forbidden to the bond issuer.
The following are restrictive covenants often used to protect the firm’s bond value and bondholder wealth;
1. Provisions that prohibit reducing the firm’s liquidity ratio below specified levels.
2. Provisions that prohibit the borrower from increasing debt ratios above specified levels.
The restrictive covenants are written directly in the trust indenture or bond deed. Also note, the more the restrictive covenants that exists in a bond, the lower its interest rate because it makes the bond appear safer.
Green T-Shirt Processing incurs only fixed and variable costs in its operations. When 10,000 T-shirts are produced, the company’s managerial accountant noted a fixed cost per shirt of $1.00 and a variable cost per pot of $6.00.
If production is expected to increase, which of the following statements is true?a. The fixed cost per T-shirt will not change; the variable cost per T-shirt will decrease.b. Total fixed costs will decrease; the variable cost per T-shirt will not change.c. The fixed cost per T-shirt will decrease; the variable cost per T-shirt will increase.d. Total fixed costs will remain unchanged; total variable costs will increase
Answers
Answer:
.d. Total fixed costs will remain unchanged; total variable costs will increase
Explanation:
Fixed cost is cost that does not vary with production e.g rent
Variable costs are costs that vary with production. If production increases, variable costs rises and if production is reduced, variable cost falls. Examples of variable costs are wages and cost of raw materials.
If production increases, more workers and raw materials would be needed, so variable cost would increase.
I hope my answer helps you
Celia Inc. has two types of handbags: Standard and custom. The Controller has decided to use a plant-wide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used Two activity cost pools were developed: Machining and Machine set-up. Presented below is information related to the company's operations
Standard Custom
Direct Labor cost 60,000 $ 12,000
Machine Hours 1,500 1,500
Set-up Hours 100 500
Total estimated overhead cost are $342,000. Overhead cost allocated to the machining activity cost pool is $222,000 and $120,000 is allocated to the machine set-up activity cost pool
1. Calculate overhead allocated to each product using the traditional (Plant-wide) approach
2. Calculate overhead allocated to each product using the activity based costing approach
Answers
Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard Custom
Direct Labor cost 60,000 $ 12,000
Machine Hours 1,500 1,500
Set-up Hours 100 500
The total estimated overhead costs are $342,000.
A. First, we need to calculate the predetermined overhead rate:
Total direct labor cost= $72,000
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 342,000/72,000
Predetermined manufacturing overhead rate= $4.75 per direct labor dollar
Standard= 4.75*60,000= $285,000
Custom= 4.75*12,000= $57,000
B. Now, we need to calculate a predetermined overhead rate for each activity:
Machining:
Total machine-hours= 3,000
Total overhead= 222,000
predetermined overhead rate= 222,000/3,000
predetermined overhead rate= $74 per machine-hour
Setup:
Total set-up hours= 600
Total overhead= 120,000
predetermined overhead rate= 120,000/600
predetermined overhead rate= $200 per set up-hour
Standard= 74*1,500 + 200*100= $131,000
Custom= 74*1,500 + 200*500= $211,000
Oliver Company provided the following information for the coming year: Units produced and sold 160,000 Cost of goods sold per unit $6.30 Selling price $10.80 Variable selling and administrative expenses per unit $1.10 Fixed selling and administrative expenses $423,000 Tax rate 35% Required: Prepare a budgeted income statement for Oliver Company for the coming year. Round all income statement amounts to the nearest dollar.
Answers
Answer:
Oliver Company
Budgeted Income Statement For the Coming Year
Sales ($10.80 * 160,000) $1,728,000
Cost of goods sold ($6.30 * 160,000) ($1,008,000)
Gross margin(Sales - COGS) $720,000
Less: Variable selling and administrative expenses ($176,000)
($1.10 * 160,000)
Less: Fixed selling and administrative expenses ($423,000)
Operating income $121,000
Less: Income taxes (35% * 121,000) ($42,350)
Net income $78,650
Information for Jersey Metalworks as of December 31 follows. Prepare (a) the company's schedule of cost of goods manufactured for the year ended December 31; (b) prepare the company's income statement that reports separate categories for selling and general and administrative expenses. Administrative salaries expense $ 135,000 Depreciation expense–Factory equipment 52,400 Depreciation expense–Delivery vehicles 36,200 Depreciation expense–Office equipment 24,800 Advertising expense 22,350 Direct labor 268,000 Factory supplies used 12,000 Income taxes expense 91,500 Indirect labor 35,000 Indirect material 24,000 Factory insurance 15,500 Factory utilities 14,000 Factory maintenance 7,500 Inventories Raw materials inventory, January 1 32,000 Raw materials inventory, December 31 28,000 Work in Process inventory, January 1 33,780 Work in Process inventory, December 31 37,460 Finished goods inventory, January 1 56,970 Finished goods inventory, December 31 62,000 Raw materials purchases 325,000 Rent expense–Factory 50,000 Rent expense–Office space 24,000 Rent expense–Selling Space 24,000 Sales salaries expense 97,500 Sales 1,452,000 Sales discounts 29,000
Answers
Answer and Explanation:
a. The Preparation of cost of goods manufactured for the year ended December 31 is prepared below:-
Jersey Metalworks
Cost of goods manufactured
for the year ended December 31
Particulars Amount
Direct materials
Raw materials, January 1 $32,000
Add:
Raw materials purchases $325,000
Raw materials available $357,000
Less raw materials, December 31 $28,000
Direct materials used $329,000
Direct labor $268,000
Factory overhead costs:
Depreciation expense-
Factory equipment $52,400
Factory supplies used $12,000
Indirect labor $35,000
Indirect material $24,000
Factory insurance $15,500
Factory utilities $14,000
Factory maintenance $7,500
Rent expense—Factory $50,000
Total factory overhead costs $210,400
Total manufacturing costs $807,400
Add:
Work in Process inventory, January 1 $33,780
Total cost of work in Process $841,180
Less work in Process inventory,
December 31 $37,460
Cost of goods manufactured $803,720
b.The Preparation of income statement is prepared below:-
Jersey Metalworks
Cost of goods manufactured
for the year ended December 31
Particulars Amount
Sales $1,452,000
Less: sales discounts $29,000
Net sales $1,423,000
Cost of Goods Sold
Finished goods inventory,
January 1 $56,970
Cost of goods manufactured $803,720
Goods available for sale $860,690
Less finished goods inventory,
December 31 $62,000
Cost of Goods Sold $798,690
Gross Profit $624,310
Operating expenses
Selling expenses
Sales salaries expense $97,500
Depreciation expense - Delivery
vehicles $36,200
Advertising expense $22,350
Rent expense-Selling space $24,000
Total selling expenses $180,050
General and administrative expenses
Administrative salaries expense $135,000
Depreciation expense- Office
equipment $24,800
Rent expense-Office space $24,000
Total general and administrative
expenses $183,800
Total operating expenses $363,850
Income before taxes $260,460
Income taxes expense $91,500
Net Income $168,960
We simply applied the above format to prepare the cost of goods manufactured and the income tax
Miller Mining, a calendar-year corporation, purchased the rights to a copper mine on July 1, Year 1. Of the total purchase price, $2.8 million was appropriately allocable to the copper. Estimated reserves were 800,000 tons of copper. Miller expects to extract and sell 10,000 tons of copper per month. Production began immediately. The selling price is $25 per ton. Miller uses percentage depletion (15%) for tax purposes. To aid production, Miller also purchased some new equipment on July 1, Year 1. The equipment cost $76,000 and had an estimated useful life of 8 years. After all the copper is removed from this mine, however, the equipment will be of no use to Miller and will be sold for an estimated $4,000. If sales and production conform to expectations, what is Miller’s depreciation expense on the new equipment for financial accounting purposes for the Year 1 calendar year?
Answers
Answer: $4,500
Explanation:
Equipment was purchased for $76,000.
It has an estimated useful life of 8 years.
It will be sold for $4,000 after these 8 years so that is the salvage value.
With these figures depreciation per annum is calculated with the following formula;
[tex]Depreciation per annum = \frac{Cost of Asset - Salvage Value}{Useful life}[/tex]
= [tex]\frac{76,000 - 4,000}{8}[/tex]
= $9,000
The Equipment was purchased on July 1, Year 1. In Year 1 therefore it will only be in use for half the year and this is what it should b depreciated in light of.
Semi-annual Depreciation = 9,000/2
= $4,500
The company can manufacture either two food processors per machine hour or three espresso machines per machine hour. The company's production capacity is 1,200 machine hours per month. What is the contribution margin per machine hour for food processors?
Answers
Answer:
The contribution margin per machine hour is $150.
Explanation:
Note: The missing part of the question is
Food Processor Espresso Machines
Sales price $125 $225
Variable costs $50 $150
Solution
Contribution Margin per Machine = Sales Price - Variable Cost
=$125 - $50
=$75
Contribution Margin = Contribution per Machine × Number of Machines Produced in 1 Machine Hour
= $75 * 2
= $150
Thus, the contribution margin per machine hour for food processors is $150.
A customer owns 400 shares of ABC stock. ABC is having a rights offering where 20 rights are needed to subscribe to 1 new share. How many new shares can the customer purchase through this rights offering
Answers
Answer:
20 new stocks
Explanation:
each stockholder should receive 1 right for every stock that he/she owns, so this particular investor owns 400 rights. Since he/she needs 20 rights to subscribe to 1 new stock, then the total number of stocks that he/she can buy = 400 / 20 = 20.
Many corporations hand out preemptive rights to their stockholders, which means that whenever new stocks are issued, they will be able to purchase them before any outside investor does.
Good communication occurs only when the recipient ________. A) agrees with the sender's message B) does what the speaker asks C) understands the speaker's meaning D) makes eye contact with the speaker
Answers
Good communication occurs only when the recipient understands the speaker's meaning. Option C. This is further explained below.
What is communication?Generally, communication is simply defined as the imparting or conveying of knowledge through speaking, writing, or by any other media
In conclusion, The only time there is successful communication is when the listener gets what the speaker is trying to say.
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The cash account for All American Sports Co. on April 1, 20Y5, indicated a balance of $23,600. During April, the total cash deposited was $80,150, and checks written totaled $72,800. The bank statement indicated a balance of $40,360 on April 30, 20Y5. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
- Checks outstanding totaled $14,300.
- A deposit of $9,275, representing receipts of April 30, had been made too late to appear on the bank statement.
- A check for $720 had been incorrectly charged by the bank as $270.
- A check for $110 returned with the statement had been recorded by All American Sports Co. as $1,100. The check was for the payment of an obligation to Garber Co. on account.
- The bank had collected for All American Sports Co. $4,320 on a note left for collection. The face of the note was $4,000.
- Bank service charges for April amounted to $75.
- A check for $1,300 from Bishop Co. was returned by the bank because of insufficient funds.
Instructions:
1. Prepare a bank reconciliation as of April 30.
2. Illustrate the effects on the accounts and financial statements of the bank reconciliation.
Answers
Answer:
All American Sports Co.
1. Bank Reconciliation Statement as at April 30, 20Y5:
Balance as per bank statement $40,360
add deposit 9,275
less outstanding checks -14,300
Incorrectly charged check 450
Balance as per adjusted cash book $34,885
Explanation:
a) Adjusted Cash Book
Opening balance $23,600
Cash Deposit 80,150
Checks - 72,800
Balance as per cash book $30,950
add Check reversal 1,100
Note collected 4,320
less Bank charges -75
Check Returned -110
NSF -1,300
Adjusted cash book balance$34,885
B) Bank Reconciliation Statements are prepared periodically, monthly for instance, to agree the balance of the cash maintained by the entity with the balance of the statement presented by the bank. The reconciliation process also helps in detecting errors.
A dummy user at Universal Containers owns more that 10,000 lead records. The system assigned all these leads to a dummy user. This is causing performance issues whenever role hierarchy changes. Which two options should be recommended to improve performance
Answers
Answer:
The situation described in the question is referred to as:
Condition Ownership Data Skew.
When designing record access for enterprise-scale, it would be a mistake to assign a role to a dummy user.
To correct the above problem, It is advisable to distribute the ownership of records across a large number of users.
This ususally has the effect of decreasing the chance of occurrence of long-running updates.
Cheers!
The Ford Motor Company is considering three mutually exclusive electronic stability control systems for protection against rollover of its automobiles. The investment period is four years (equal lives) and the MARR is 12% per year. Data for fixturing costs of the system are given below.
Alternative A
IRR = 19.2&
CAPITAL INVESTMENT = $12,000
NET ANNUAL RECEIPT = $4,000
SALVAGE VALUE = $3,000
Alternative B
IRR = 18
CAPITAL INVESTMENT = $15,800
NET ANNUAL RECEIPT = $5.200
SALVAGE VALUE = $3,500
Alternative C
IRR = 19.2&
CAPITAL INVESTMENT = $8,000
NET ANNUAL RECEIPT = $3.000
SALVAGE VALUE = $1,500
Required:
Which alternative is best and why?
Answers
Answer:
Alternative C
Explanation:
project A project B project C
initial investment -12,000 -15,800 -8,000
NCF year 1 4,000 5,200 3,000
NCF year 2 4,000 5,200 3,000
NCF year 3 4,000 5,200 3,000
NCF year 4 7,000 8,700 4,500
NPV 2,055.95 2,218.53 2,065.33
IRR 19.2% 18% 19.2%
Payback period 3 years 3.04 years 2.67 years
Since all projects have a positive NPV and all NPVs have a very similar value, then we must use the projects' IRR to determine which project will be selected. We should select the project with the highest IRR.
But that leaves us with two options, project A and C, and we eliminate project B. Now we can use a third parameter which is payback period, since a shorter payback period reduces risk, it both projects have positive NPV's and high IRRs, then we should choose the project with the shortest payback period.
Project C's payback period is shortest, therefore, we should select that project.
The alternative that would be the most effective and its reason would be as follows:
- Alternative C because it offers the maximum IRR in a briefer payback period.
The IRR's and the payback period for the three alternatives are as follows:
Alternative A Alternative B Alternative C
IRR 19.2% 18% 19.2%
Payback 3 years 3.04 years 2.67 years
In order to determine the best alternative, the one with the highest IRR would be most effective. Here, two alternatives have similar IRRs and therefore, the payback period would be considered.Therefore, the one with the highest IRR and lowest payback period would be the best alternative.Thus, Alternative C is the correct answer.
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The rate established prior to the beginning of a period that uses estimated overhead and an allocation factor such as estimated direct labor, and that is used to assign overhead cost to jobs, is the:
Answers
Answer:
This is the Predetermined overhead rate
Explanation:
The predetermined overhead rate assigns a particular amount of manufacturing overhead to each direct labor or machine hour. This helps businesses allocate resources and also set pricing. This computation is usually done at the beginning of each period.
To calculate this, we divide the estimate of the manufacturing overhead cost total by the estimated number of machine hours. It is used to assign overhead cost to jobs.
At December 31, 2020 Sunland Company had 200000 shares of common stock and 10600 shares of 7%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2020 or 2021. On February 10, 2022, prior to the issuance of its financial statements for the year ended December 31, 2021, Sunland declared a 100% stock dividend on its common stock. Net income for 2021 was $960000. In its 2021 financial statements, Sunland’s 2021 earnings per common share should be:___________$4.47.$4.20.$2.21.$1.29.
Answers
Answer:
$2.21
Explanation:
For the computation of earnings per common share first we need to find out the preferred dividend and shares outstanding which is shown below:-
Preferred dividend = Common stock × 100 × Given percentage
= 10,600 × 100 × 7%
= 74,200
Share outstanding = Shares × 2
= 200,000 × 2
= 4,000,000
Earning per share = (Net income - Preferred dividend) ÷ Share outstanding
= ($960,000 - 74,200) ÷ 400,000
= $2.21
Hence, we applied the above formulas
The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 YTM 5.05 % 5.49 % 5.78 % 5.93 % 6.09 % What is the price per $ 100 face value of a four-year, zero-coupon, risk-free bond?
Answers
Answer:
The answer is $79.42
Explanation:
Zero-coupon bonds does not make any periodic payments of interest. It pays both the interest and the face value at maturity.
N(Number of periods) = 4 years
I/Y(Yield to maturity) = 5.93 percent
PV(present value or market price) = ?
PMT( coupon payment) = 0
FV( Future value or par value) = $100
We are using a Financial calculator for this.
N= 4; I/Y = 5.93; PMT = 0; FV= $100; CPT PV= -79.42
Therefore, the market price of the bond is $79.42
Classify the following markets as perfectly competitive, monopolistic, or monopolistically competitive, and explain your answers.
Wooden no. 2 pencils
Copper (hint: there are many sellers)
Local public utilities (ex. water, electricity)
Peanut butter
Lipstick
Answers
Answer:
Wooden no. 2 pencils
Perfectly competitive market because there are many buyers and suppliers of pencils. Also, wooden no. 2 pencils are basically identical no matter which brand you purchase.Copper (hint: there are many sellers)
Copper is considered a commodity which has many suppliers and consumers around the world, therefore, it is classified as a perfectly competitive market. No individual supplier, nor any individual consumer has enough market power to affect the price and supply of copper.Local public utilities (ex. water, electricity)
Monopolistic market because there are generally only one supplier of each type of public utilities, e.g. one water company per city.Peanut butter
Monopolistically competitive markets since there are many consumers and suppliers, but each supplier produces a slightly different product. Even though there are several peanut butter brands, no two brands offer the same peanut butter.Lipstick
Monopolistically competitive markets since there are many consumers and suppliers, but each supplier produces a slightly different product. Even though there are several lipstick brands, no two brands offer the same lipstick.In this way, it should be classified.
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On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 24,000, $15 par, common shares. The market price of the common stock is $44 on this date.
Requried:
a. Record the necessary journal entries assuming a small (10%) stock dividend
b. Record the stock dividend assuming a small (10%) stock dividend.
c. Record the stock dividend assuming a large (100%) stock dividend.
d. Record the stock dividend assuming a 2-for-1 stock split.
Answers
Answer:
September 01
Dr Stock dividends 105,600
Cr Common stock 36,000
Cr Additional paidin capital 69,600
September 01
Dr Stock dividends 360,000
Cr Common stock 360,000
September 01 No journal entry
Explanation:
1. 2. & 3. Preparation to Record the journal entries assuming a small (10%) stock dividend
September 1: Stock dividends (24,000 × 10% × $44) = 105,600
September 1: Common stock (24,000 × 10% × $15) = $36,000
1. 2. & 3. Prepartion to Record the journal entries assuming a small (100%) stock dividend,
September 1: Stock dividends (24,000 shares × $15×100%) =$360,000
To Record the stock dividend assuming a 2-for-1 stock split.
No journal entry required
Hence,
Colorado Outfitters, Inc. Journal entries
September 01
Dr Stock dividends 105,600
Cr Common stock 36,000
Cr Additional paidin capital 69,600
(105,600-36,000)
September 01
Dr Stock dividends 360,000
Cr Common stock 360,000
September 01 No journal entry
Barney Corporation recognized a $100 million preferred stock balance on 12/31/2019.
On January 1, 2020, Barney issued $10 million in preferred dividends.
On the same date, Barney raised an additional $20 million via a new issuance of preferred stock.
On December 31, 2020, the market value of the original amount of preferred shares rose $5 million.
Under US GAAP, the 12/31/2020 year ending preferred stock balance is:___________.
A. $110m
B. $115m
C. $120m
D. $125m
Answers
Answer:
C. $120m
Explanation:
As per the given situation, the calculation of the ended year the preferred stock is shown below:
Ending preferred stock balance
= Beginning balance of preferred stock + new issuance of preferred stock
= $100 million + $20 million
= $120 million
Therefore, for computing the ending preferred stock balance we simply applied the above formula and ignore all other values as they are not relevant. So the correct answer is C.
During the year, the Senbet Discount Tire Company had gross sales of $1.24 million. The company’s cost of goods sold and selling expenses were $593,000 and $246,000, respectively. The company also had notes payable of $850,000. These notes carried an interest rate of 5 percent. Depreciation was $123,000. The tax rate was 23 percent. a. What was the company’s net income? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.) b. What was the company’s operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
Answers
Answer:
Net income= $139,755
Operating cash flow= $346,835
Explanation:
Senbet discount tire company has a gross sale of $1.24 million
The cost of goods sold is $593,000
The selling expense is $246,000
The company has a note payable of $850,000 with an interest rate of 5%
Depreciation is $123,000
Tax rate is 23%
(a) Inorder to calculate the tax expense the first step is to find the interest
Interest= debt×interest rate
= $850,000×5/100
= 850,000×0.05
= 42,500
Therefore, the net income can be calculated as follows
= (sales-cost of goods sold-selling expense-depreciation-interest)(1-tax rate)
=( $593,000-$246,000-$123,000-42,500)(1-0.23)
= 181,500×0.77
= $139,755
(b) Inorder to calculate the operating cash flow the first step is to find the tax expense
Tax expense= (gross sales-cost of goods sold-selling expense-depreciation-interest)× tax
($1,240,000-$593,000-$246,000-$123,000-42,500)×0.23
= $235,500×0.23
= $54,165
Therefore, the operating cash flow can be calculated as follows
= gross sales-cost of goods sold-selling expense-depreciation-tax expense+depreciation
=$1,240,000-$593,000-$246,000-$123,000-$54,165+$123,000
= $346,835
Hence the net income is $139,755 and the operating cash flow is $346,835
The previous value of a portfolio that must be regained before a hedge fund can charge their investors performance fees is known as a
Answers
Answer:
high watermark
Explanation:
A high watermark refers to the mark at which the investment could be reached at a high peak. It to be calculated on that date when the performance fees are charged and it could be charged only on that case when there is a rise in the value of the portfolio
Moreover, in the high watermarks there is no need to pay the performance based fee when there is a poor performance
Therefore the given situation represent the high watermark
Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 27.5% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price
Answers
Answer:
Price of stock today = $53.29
Explanation
The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.
This model would be applied as follows:
PV from year 1 to 3
Year Present Value ( PV)
1 1.25 × 1.275 × 1.1^(-1) = 1.4358
2 1.25 × 1.275^2 × 1.1^(-2) = 1.6492
3 1.25 × 1.275^3 × 1.1^(-3) = 1.894
Total 4.979
Year 4 and beyond
This will be done in two steps
Step 1
D× (1+g)/k-g
1.25 ×1.275^4/(0.11-0.06)
=66.066
Step 2
Present Value in year 0
=66.066 × 1.11^(-3) = 48.3068
Total present value = 4.979 + 48.306= 53.286
Price of stock today = $53.29
Assume the following data for Casper Company before its year-end adjustments:
Unadjusted Balances
Debit Credit
Sales $1,750,000
Cost of Merchandise Sold $1,000,000
Estimated Returns Inventory 600
Customer Refunds Payable 400
Estimated cost of merchandise that will be returned in the next year $8,000
Estimated percent of refunds for current year sales 0.6%
a. Journalize the adjusting entry for the estimated customer allowances.
Sales
Customer Refunds Payable
Feedback
b. Journalize the adjusting entry for the estimated customer returns.
Estimated Returns Inventory
Cost of Merchandise Sold
Answers
Answer:
a. Journalize the adjusting entry for the estimated customer allowances.
Dr Sales returns and allowances 10,500 Cr Customer refunds payable 10,500The adjusting entry should = total sales x estimated percent of returns = $1,750,000 x 0.6% = $10,500
b. Journalize the adjusting entry for the estimated customer returns.
Dr Estimated returns inventory 8,000 Cr Cost of merchandise sold 8,000This amount is given in the question, $8,000, so you need to record it as a decrease in COGS and an increase in returns inventory.
Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchases $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the payment on August 16 is:
Answers
Answer:
The journal entries for the whole transaction are:
August 7, 202x, merchandise purchased on account, terms 1/10, n/30
Dr Merchandise inventory 9,750
Cr Accounts payable 9,750
August 11, 202x, partial return of purchased merchandise
Dr Accounts payable 1,500
Cr Merchandise inventory 1,500
August 16, 202x, invoice is paid within discount period
Dr Accounts payable 8,250
Cr Cash 8,167.50
Cr Purchase discounts 82.50
Determine the estimate of the mean when the process is in control.Assuming the process standard deviation is .50 and the mean of the process is the estimate calculated in Question 1, determine the Upper Control Limit (UCL) and the Lower Control Limit (LCL) for the manufacturing process.Explain the results to the vice-president of the mattress manufacturer focusing on whether, based on the results, the process is in or out of control.
Answers
The question is incomplete! Complete question along with answer and step by step explanation is provided below.
Question:
A local mattress manufacturer wants to know if its manufacturing process is in or out of control and has hired you, a statistics expert in the field, to analyze its process. Specifically, the business has run 20 random samples of size 5 over the past month and has determined the mean of each sample.
95.72 95.44 95.4 95.5 95.56 95.72 95.6 95.24 95.46 95.44 95.8 95.2 94.82 95.78 95.18 95.32 95.08 95.22 95.04 95.48
a. Determine the estimate of the mean when the process is in control.
b. Assuming the process standard deviation is .50 and the mean of the process is the estimate calculated in Question 1, determine the Upper Control Limit (UCL) and the Lower Control Limit (LCL) for the manufacturing process.
c. Explain the results to the vice-president of the mattress manufacturer focusing on whether, based on the results, the process is in or out of control.
Answer:
[tex]Mean = \bar{x} = 95.4[/tex]
[tex](LCL, \: UCL) = (94.73, \: 96.07)[/tex]
The mean of the 20 random samples of size 5 over the past month lies between the obtained control limit of (94.73, 96.07) therefore, the process is in control.
Explanation:
a. Determine the estimate of the mean when the process is in control.
The mean is given by
[tex]Mean = \bar{x} = \frac{\sum x}{n}[/tex]
Where n = 20 samples
Using Excel,
=AVERAGE(number1, number2,....)
The mean is found to be
[tex]Mean = \bar{x} = 95.4[/tex]
b. Assuming the process standard deviation is .50 and the mean of the process is the estimate calculated in Question 1, determine the Upper Control Limit (UCL) and the Lower Control Limit (LCL) for the manufacturing process.
The Upper Control Limit (UCL) is given by
[tex]$ UCL = \bar{x} + \frac{3 \cdot s}{\sqrt{n} } $[/tex]
Where [tex]\bar{x}[/tex] is the mean, s is the standard deviation and n is the size of random samples that is 5 (not 20)
[tex]UCL = 95.4 + \frac{3 \times 0.50}{\sqrt{5} } \\\\UCL = 95.4 + 0.671 \\\\UCL = 96.07[/tex]
The Lower Control Limit (UCL) is given by
[tex]$ LCL = \bar{x} - \frac{3 \cdot s}{\sqrt{n} } $[/tex]
[tex]LCL = 95.4 - \frac{3 \times 0.50}{\sqrt{5} } \\\\LCL = 95.4 - 0.671 \\\\LCL = 94.73[/tex]
So the control limits are
[tex](LCL, \: UCL) = (94.73, \: 96.07)[/tex]
c. Explain the results to the vice-president of the mattress manufacturer focusing on whether, based on the results, the process is in or out of control.
The process is in control based on the obtained results.
The mean of the 20 random samples of size 5 over the past month lies between the obtained control limit of (94.73, 96.07) therefore, the process is in control.
Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method
Nov. 5 Purchased 600 units of product at a cost ot s10 per unit. Terms of the sale are 2/10, n/60 the invoice is dated
Nov. 7 Returned 25 defective units from the November 5 purchase and received full credit.
Nov. 15 Paid the amount due from the November 5 purchase, less the return on November 7.
Answers
Answer:
A Merchandising Company
Journal Entries:
Nov. 5:
Debit Inventory $6,000
Credit Accounts Payable $6,000
To record the purchase of 600 units of a product at a cost of $10 per unit, terms, 2/10, n/60.
Nov. 7:
Debit Accounts Payable $250
Credit Inventory $250
To record the return of 25 defective units.
Nov. 15:
Debit Accounts Payable $5,750
Credit Cash Discount $115
Credit Cash Account $5,635
To record payment on account.
Explanation:
The journal entries show the accounts affected by each transaction. Two or more accounts are usually affected. One account receives value and is debited and the other gives value, and it is credited.
The trade terms 2/10, n/60 implies that a cash discount of 2% on the outstanding balance exists for early settlement on account within 10 days and the credit period should not exceed 60 days or two months.