Answer:
c. $326,948
Explanation:
we must determine the market price of the bonds:
market price = PV of face value + PV of coupons
PV of face value = $300,000 / (1 + 2%)¹⁰ = $246,104.49PV of coupons = $9,000 (coupons) x 8.9826 (PV annuity factor 2%, 10 periods) = $80,843.40total market price = $326,947.89 ≈ $326,948
since the market rate is lower than the coupon rate, the bonds should be sold at a premium.
The December 31, 2014 balance sheet of Barone Company had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. During 2015, the following transactions occurred: sales on account $1,500,000; sales returns and allowances, $50,000; collections from customers, $1,250,000; accounts written off $36,000; previously written off accounts of $6,000 were collected.A. Journalize the 2015 transactions.B. If the company uses the percentage-of-sales basis to estimate bad debt expense and anticipates 3% of net sales to be uncollectible, what is the adjusting entry at December 31, 2015?C. If the company uses the percentage of receivables basis to estimate bad debt expense and determines that uncollectible accounts are expected to be 8% of accounts receivable, what is the adjusting entry at December 31, 2015?D. Which basis would produce a higher net income for 2015 and by how much?
Answer:
Barone Company
General Journal for 2015 transactions:
Debit Accounts Receivable $1,500,000
Credit Sales Revenue $1,500,000
To record sales on account.
Debit Sales Returns $50,000
Credit Accounts Receivable $50,000
To record sales returns and allowances.
Debit Cash Account $1,250,000
Credit Accounts Receivable $1,250,000
To record cash collections from customers.
Debit Allowance for Doubtful Accounts $36,000
Credit Accounts Receivable $36,000
To record uncollectible written-off.
Debit Accounts Receivable $6,000
Credit Allowance for Doubtful Accounts $6,000
To reinstate previously written off accounts.
Debit Cash Account $6,000
Credit Accounts Receivable $6,000
To record collection of previous write-off.
Adjusting Entry at December 31, 2015:
B. Using 3% of net sales:
Debit Bad Debt Expense $41,500
Credit Allowance for Doubtful Accounts $41,500
To record bad debt expense.
C. Using 8% of Receivables:
Debit Bad Debt Expense $43,120
Credit Allowance for Doubtful Accounts $43,1`20
To record bad debt expense.
D. 3% of net sales produces a higher net income and by $1,620
Explanation:
1. Accounts Receivable
Beginning balance (debit) = $400,000
Sales 1,500,000
Sales Returns & allowances (50,000)
Cash Collections (1,250,000)
Uncollectible write-off (36,000)
Reinstatement of write-off 6,000
Cash Collection (6,000)
Ending balance $564,000
2. Allowance for Doubtful Accounts
Beginning balance (Credit) $32,000
Uncollectible write-off (36,000)
Reinstatement of write-off 6,000
Balance pre-year adjustment $2,000
Using 3% of net sales
Bad debt expense $41,500
Ending balance (credit) $43,500
Balance pre-year adjustment $2,000
Using 8% of receivable balance
Bad debt expense $43,120
Ending balance (credit) $45,120
3. Allowance for Doubtful Accounts (Ending balance)
3% of net sales = $1,450,000 x 3% = $43,500
8% of receivables = $564,000 x8% = $45,120
If the December 31, 2014 balance sheet of Barone Company had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. The journal entries will be:
A. Journalize the 2015 transactions.
Debit Accounts Receivable $1,500,000
Credit Sales Revenue $1,500,000
(To record credit sales)
Debit Sales Returns and Allowances $50,000
Credit Accounts Receivable $50,000
(To record credit to customers)
Debit Cash $1,250,000
Credit Accounts Receivable $1,250,000
(To records collection of receivables)
Debit Allowance for Doubtful Accounts $36,000
Credit Accounts Receivable $36,000
(To record write of specific account)
Debit Accounts Receivable $6,000
Credit Allowance for Doubtful Accounts $6,000
(To record written off accounts)
Debit Cash Account $6,000
Credit Accounts Receivable $6,000
(To record collection of previous write-off)
B. Preparation of the journal entry using the percentage-of-sales basis
Percentage-of-sales basis:
Sales revenue $1,500,000
Less: Sales Returns and Allowances $50,000
Net Sales $1,450,000
($1,500,000-$50,000)
Bad debt percentage 3%
Bad debt provision $43,500
(3%×$1,450,000)
Journal entry
Dec. 31
Debit Bad Debt Expense $43,500
Credit Allowance for Doubtful Account $43,500
C. Preparation of the journal entry using the percentage of receivables basis
Percentage of receivables basis
Account receivable
Dr Cr
$400,000 $50,000
$1,500,000 $1,250,000
$6,000 $36,000
$6.000
Bal. $564,000
Allowance for Doubtful Accounts
Dr Cr
$36,000 $32,000
$6,000
Bal. $2,000
Required balance $45,120
($564,000 × .08)
Less Balance before adjustment $2,000
Adjustment required $43,120
($45,120-$2,000)
Journal entry
Dec. 31
Debit Bad Debt Expense $43,120
Credit Allowance for Doubtful Account $43,120
D. Calculation to determine the basis that would produce a higher net income for 2015 and by how much?
Percentage-of-sales basis $43,500
(3%×$1,450,000)
Percentage of receivables basis $43,120
[($564,000 × .08) -$2,000]
Difference $380
Percentage-of-sales basis will produce a higher net income for 2015 by $380
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Ian Sanders offered to sell his car to Beth Jones for $5,000. Subsequently, Beth demanded that he provide new seat covers for the car as she was paying a rather heavy price for the car. Beth's response represents a(n) ________.
This question is incomplete because the options are missing; here is the complete questions:
Ian Sanders offered to sell his car to Beth Jones for $5,000. Subsequently, Beth demanded that he provide new seat covers for the car as she was paying a rather heavy price for the car. Beth's response represents a(n) ________.
A. Inquiry regarding terms
B. Rejection of the offer
C. Conditional acceptance of the offer
D. Additional term
The correct answer to this question is D. Additional term
Explanation:
In a contract, the terms refer to the specific conditions or obligations the parties involved accept. These terms are usually registered in a document as not following the terms has legal consequences. In the case presented, the answer of Beth represents an additional term because the purpose of her answer is to include a new condition or obligation that the seller of the car should accomplish as part of the agreement between seller and buyer.
If a firm's goal is to maximize its earnings per share, this is the best way to maximize the price of the common stock and thus shareholders' wealth.
Answer:
False
Explanation:
As maximization of the earnings per share might not be the same thing as the wealth maximization which is the primary goal of the company because the company not only has to generate higher profits but also manage all the risks of the entity which might increase by unethical trading in race to increase earnings per share. Furthermore, to enjoy less costly debt finance which would increase the earnings per share, would result in increase in financial risk, which might again head the company towards disaster if not well managed.
The other solid point against the statement would be that the primary purpose can not be the maximization of earnings per share as it stresses upon spending less on corporate social responsibility and as the result the company stock will be less valued at stock exchange. The less valued stock is because the companies like Dow and S & P Global adds no green value to the stock if the company is not spending on social responsibility programs.
Hence the statement is incorrect.
On January 1, Concord Corporation had 113000 shares of $10 par value common stock outstanding. On March 17 the company declared a 5% stock dividend to stockholders of record on March 20. Market value of the stock was $15 on March 17. The entry to record the transaction of March 17 would include a
Answer and Explanation:
The Journal entry is shown below:-
March 17
Stock Dividend Dr, $84,750 (113,000 × 5% × $15)
To Common Stock Dividend Distributable $56,500 (113000 × 5% × $10)
To Paid in capital in excess of Par - Common Stock $28,250
(Being stock dividend is recorded)
Here we debited the stock dividend and we credited the Common Stock Dividend Distributable and Paid in capital in excess of Par - Common Stock
On 12/31/19, Hite Industries reported retained earnings of $537,500 on its balance sheet, and it reported that it had $135,000 of net income during the year. On its previous balance sheet, at 12/31/18, the company had reported $445,000 of retained earnings. No shares were repurchased during 2019. How much in dividends did the firm pay during 2019
Answer:
Dividends paid= $227,500
Explanation:
The dividend paid during the year 2019 would be the determined by sum of the opening balance of retained earnings and net income and less the closing balance of retained earnings.
Dividends paid = Retained earnings at the beginning + net income - retained earnings at the end.
Note that the payment of dividends would reduce the amount of retained earnings balance
Dividends paid = 537,500 + 135,000 - 445,000= 227,500
Dividends paid= $227,500
Intricate Wiring Corp., based in Ohio, creates a brand new high-tech product. The demand for the product in the United States is high but very low or non-existent elsewhere. The company decides not to locate manufacturing facilities elsewhere and will simply meet the small foreign demand via exports. The theory that best explains the company's policy is
Answer:a. product life cycle theory.
Explanation:
The Product Life Cycle Theory was created to explain the International trade pattern of a new product. The theory attempts to show that when a product is first invented, its demand and production inputs such as capital and labor, come from the area it was invented in. As the product starts getting more recognised and it's demand increases elsewhere, it will start to export and then continue until it starts manufacturing in other areas to feed the demand of those areas as well.
Intricate Wiring Corp's new high-tech product is following this theory because it has just started out and so its demand is based in its country of origin being the United States. For as long as this is the case, the company should focus on producing in the United States until demand picks up substantially enough to produce elsewhere.
IAS 16. Fixed Assets. We are a graphic arts company, and at the beginning of 2016, we acquired a new printer. The price of this printer was 25,000 euros. The additional expenses of the purchase were as follows:
Answer:
1.Initial Acquisition cost €24,882.15
2.Amortization fee €1,688.215
3.The costs derived from daily maintenance €30,000
Explanation:
1. Calculation for the initial cost of the acquisition for IAS 16. Fixed Assets.
Using this formula
Initial Acquisition cost = (Purchase price + Additional direct expenses relative to acquisition) - (Depreciation + Amortization + taxes + impairment costs)
Let plug in the formula
Initial Acquisition cost= (25,000+ 3.00+1.150) - (122)
Initial Acquisition cost =25,004.15-122
Initial Acquisition cost = 24,882.15 Euro
Therefore the Initial Acquisition cost will be €24,882.15
2.Calculation for the amortization fees.
Using this formula
Amortization fees = total interest amount/period in the debt's life
Let plug in the formula
Interest amount= 24,882.15-5000- (250*12)
Interest amount =19,882.15-3,000
Interest amount= 16,882.15
Hence, Amortization fee will be :
Interest amount/Period in the debt's life
Where,
Interest amount=16,882.15
Period in the debt's life=10 years
Amortization fee =16,882.15/10 years
Amortization fee= €1,688.215
Therefore the Amortization fee will be €1,688.215
3.Calculation for he costs derived from daily maintenance
The costs derived from daily maintenance will be ;
Using this formula
Costs derived from daily maintenance= Specialised weekly maintenance× 12 month ×Numbers of years
Let plug in the formula
Costs derived from daily maintenance= 250*12*10
Costs derived from daily maintenance=30,000
Therefore the costs derived from daily maintenance will be €30,000
Laurel inc and Hardy corp both have 10 percent coupon bonds outstanding, with semiannual interest payments, and both are currently priced at the par value of $1,000. The Laurel, Inc., bond has five years to maturity, whereas the Hardy Corp. bond has 16 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? If the interest rates fall by 2 percent?
Answer:
current bond price $1,000
interest rate 10%
Laurel bond matures in 5 years, 10 semiannual payments
Hardy bonds matures in 16 years, 32 semiannual payments
if market interest increases to 12%
Laurel bond:
$1,000 / (1 + 6%)¹⁰ = $558.39
$50 x 7.36009 (annuity factor, 6%, 10 periods) = $368.00
market price = $926.39
% change = -7.36%
Hardy bond:
$1,000 / (1 + 6%)³² = $154.96
$50 x 14.08404 (annuity factor, 6%, 32 periods) = $704.20
market price = $859.16
% change = -14.08%
current bond price $1,000
interest rate 10%
Laurel bond matures in 5 years, 10 semiannual payments
Hardy bonds matures in 16 years, 32 semiannual payments
if market interest decreases to 8%
Laurel bond:
$1,000 / (1 + 4%)¹⁰ = $675.56
$50 x 8.1109 (annuity factor, 4%, 10 periods) = $405.55
market price = $1,081.11
% change = 8.11%
Hardy bond:
$1,000 / (1 + 4%)³² = $285.06
$50 x 14.08404 (annuity factor, 4%, 32 periods) = $704.20
market price = $1,178.74
% change = 17.87%
Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses.
You may assume that Betty will owe $2,502 in self-employment tax on her salon income.
Interest income $11,255
Salon sales and revenue 86,360
Salaries paid to beauticians 45,250
Beauty salon supplies 23,400
Alimony paid to her ex-husband, Rocky 6,000
Rental revenue from apartment building 31,220
Depreciation on apartment building 12,900
Real estate taxes paid on apartment building 11,100
Real estate taxes paid on personal residence 6,241
Contributions to charity 4,237
You may assume that Betty will owe $2,576 in self-employment tax on her salon income, with $1,288 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.
Required:
Determine Betty's taxable income to file 1040.
Answer:
Explanation:
Interest income - 11,255
Income from self Employment
Salon sales and revenue - 86,360
Beauticians salary - 45,250
Salon supplies 23,400
Total (68650)
Salon income 17,710
Income from rental activities
Rental revenue - 31,220
Depreciation on building 12,900
Real estate taxes 11,100
Total expenses (24,000)
Rental income 7,220
Taxable income calculation
Interest income - 11,255
Salon income 17,710
Rental income 7,220
Total income 36,185
Adjustment
Alimony paid (6000)
1/2 of self employment tax on income (2502/2) (1251)
Total (7251)
Adjusted income 28,934
Less standard deduction (12,000)
Taxable income - 16,934
Rank the steps of the (sandwich) ELISA procedure from first step to last step. Do not overlap any steps.
Answer and Explanation:
The ELISA refers to the enzyme-linked immunosorbent assay (ELISA) It is used to determine the existence of an antigen in a sample with the help of antibiotics
The ELISA procedure in sequence form is shown below:
1. The capture antibody is added and then clean it
2. Now adding the blocking buffer and then clean it
3. Now add the samples with controls, Hatch it and clean it
4. Add horseradish peroxidase (HRP) conjugated with the antibody, Hatch it and clean it
5. Add Thymidine monophosphate (TMP)
6. And finally, the last step is to record the results
The open-ended question post-project evaluation meeting should contain an opportunity to talk about possible additional projects and assume permission to use the customer as a reference with potential customers.
a. True
b. False
Answer:
B. False.
Explanation:
In the rightful manner, this meeting type is said to typically happen in different formats though most of it happens to appear in different video calls, conference or zoom which is popular in recent times. This meeting should contain or entertain the ability for opportunity talks which could yield possibilities in adding works that can benefit the parties involved. But in the case above, assuming the permission to use the customer as a reference with potential customers is totally out of the line so it is said to not totally fall in as post project evaluation.
Filling your individualf ederal tax returns would be best described what type of value chain?
Answer: Government to customer (G2C)
Explanation:
Filing is one of the requirements of any business person to give proper record of what they did in their business and how they delivered to the masses. This is proper for tax clearance and returns. When filing your individual tax returns the value chain is known as government to customer (G2C). This is recommended.
A sale by IBM of new stock to the public would be a(n) Group of answer choices secondary-market transaction. short sale. private placement. initial public offering. seasoned equity offering.
Answer:
seasoned equity offering
Explanation:
A sale by IBM of new stock to the public would be a seasoned equity offering. This term refers to when additional shares or bonds are offered for sale by an existing publicly-traded company, such as IBM in this scenario. Usually, these offerings may include shares sold by existing shareholders, new shares, or even maybe both. But in this particular case are new stocks.
Based on the company’s 2013 10-K, how much long term debt is maturing between 2014 and 2016? Please provide your answer in millions without comma separator or decimal (Ex: 2345).
Answer:
Colgate Palmolive Company
The company's 2013 10-K Long-term debts maturing between 2014 and 2016:
Maturing: Amount
Year $'millions
2014 895
2015 491
2016 255
Total 1641
Explanation:
The long-term debts of Colgate Palmolive, according to the company's 2013 10-K reports are mainly commercial papers and notes, with various maturity dates. These debts would not be paid off in 2013. However, it looks like there was a misclassification of the long-term debts since the 2014 long-term debts would not take more than 12 months to mature. They should have been classified as current out-right, though there was an acknowledgement and indication that some of these long-term debts were maturing currently.
A car dealership spends $140,000 on cars to stock their lot. After a day of sales, they earn a total revenue of $300,000. What is the car dealership's profit
Answer:
$160,000
Explanation:
Calculation of the car dealership's profit
Using this formula
Profit= Total revenue- Amount Spend
Where,
Total revenue=$300,000
Amount Spend=$140,000
Let plug in the formula
Profit =300,000-140,000
Profit =160,000
Therefore the car dealership's profit will be $160,000
Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $16 per direct labor hour. The variable overhead rate is $1.10 per direct labor hour and the fixed overhead rate is $1.50 per direct labor hour. Andrews expects to have 620 chairs in ending inventory. There is no beginning inventory of office chairs.
Required:
1. Calculate the unit product cost. (Note: Round to the nearest cent.)$
2. Calculate the cost of budgeted ending inventory. (Note: Round to the nearest dollar.)$
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct material= $14
Direct labor= 1.9 direct labor hours at $16 per direct labor hour.
Variable overhead= $1.10 per direct labor hour
Fixed overhead rate= $1.50 per direct labor hour.
Ending inventory (units)= 620
We can calculate the unitary product cost using the absorption or variable costing method. The first one includes the unitary fixed overhead to the unitary product cost.
Absorption costing:
Unitary cost= 14 + 1.9*16 + (1.1+1.5)*1.9= $49.34
Ending inventory= 49.34*620= $30,590.8
Variable costing:
Unitary cost= 14 + 1.9*16 + 1.1*1.9= $46.49
Ending inventory= 46.49*620= $28,823.8
The user of a(n) ________ conflict style assertively attempts to resolve conflict by working together with the other person to find an acceptable solution.
a. Avoiding
b. Accommodating
c. Negotiating
d. Collaborating
Answer:
d. Collaborating
Explanation:
The user of a collaborating conflict style assertively attempts to resolve conflict by working together with the other person to find an acceptable solution. It is one of the most commonly used conflict resolving styles, reason why it is also referred to as the problem solving style.
Individuals engaging in a collaborating conflict style are usually very cooperative and assertive in the process of resolving the problem.
This ultimately implies that, it usually leads to a peaceful resolution and arguably the best conflict resolving method. Also, individuals participating are availed the best opportunity.
The primary thing that this more sophisticated measure of ROA better captures that the simpler version, defined as ROA* = Net Income / Total Assets, is:
Answer:
The question is incomplete, the options are missing. The options are the following:
a) It better measures how we did with our assets, irrespective of the mix of debt and equity used to finance those assets
b) It adjusts for non-recurring items in net income
c) It takes out non-cash charges that are in net income
d) It gives a higher number, so it makes the firm look better
And the correct answer is the option A: It better measures how we did with our assets, irrespective of the mix of debt and equity used to finance those assets.
Explanation:
To begin with, the term of "Return on Assets" refers to the measure that is used in the companies and in the financial world in order to understand how the company is doing with the relationship between the net income and the assets so in that way the company can be more certain about what percentage of the assets are more profitable in getting revenue back after the sales.
You own 500 shares of ABC stock. The stock has been declining in price and is now selling for $30 a share. You decide to sell all your shares and place a limit sell order at a price of $30 a share. When you order reaches the trading desk, the market price has declined to $29 a share. The next day the price falls to $18 a share. What is the status of your order
Answer:
The order has not yet been executed which means you still own 500 share
Explanation:
The status of your order is that the order has not yet been executed which means you still own 500 share because despite that you own the 500 shares of ABC stock in which the stock has been declining in price but now sells for $30 per share in which you wanted to sell all the shares thereby placing a limit sell order at a price of $30 per share but the shares continue to decline from $30 per share to $29 per share to $18 per share, their wont be any cause for alarm because the order has not yet been executed which means that the 500 shares is still in your custody.
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who together produced an average of 70 carts per hour. Workers receive $18 per hour, and machine cost was $30 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by 6 carts per hour.
A. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity.
B. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure.
C. Comment on the changes in productivity according to the two measures.
Answer:
A. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity.
old system = 70 carts / 6 workers = 11.67 carts per workernew system = 76 carts / 5 workers = 15.2 carts per workerB. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure.
old system = 70 carts / ($108 + $30) = 0.51 carts per dollarnew system = 76 carts / ($90 + $41) = 0.58 carts per dollarC. Comment on the changes in productivity according to the two measures.
The new system is more productive and efficient since it uses less workers to produce a higher output. The additional costs of implementing the new system are lower than the cost of employing more workers.Explanation:
Multi factor productivity = total output / (cost of wages + material cost + overhead cost)
Swiss Clothing Store had a balance in the Accounts Receivable account of $820,000 at the beginning of the year and a balance of $780,000 at the end of the year. Net credit sales during the year amounted to $7,200,000. The accounts receivable turnover ratio was
Answer:
9
Explanation:
accounts receivable turnover ratio = net credit sales / average accounts receivables
net credit sales = $7,200,000average accounts receivable = (beginning balance + ending balance) / 2 = ($820,000 + $780,000) / 2 = $1,600,000 / 2 = $800,000accounts receivable turnover ratio = $7,200,000 / $800,000 = 9
The accounts receivable turnover ratio measures how effectively can a company collect its accounts receivables during a certain period.
On December 31, there were 41 units remaining in ending inventory. These 41 units consisted of 5 from January, 7 from February, 9 from May, 7 from September, and 13 from November. Using the specific identification method, what is the cost of the ending inventory
Answer:
$6,023
Explanation:
Calculation for the Ending inventory
Using this formula
Ending inventory =January units ×costs +February units×costs +May units × cost+September units ×costs + November units × costs
Let plug in the formula
Ending inventory =5×123+7×133+9×143+7×153+13×163
Ending inventory =$615+$931+$1,287+$1,071+$2,119
Ending inventory =$6,023
Therefore the Ending inventory is $6,023
Assume the same data as in Problem 2 for the cost to make a Widget. What if we could sell the widgets we make for $50 to other customers. We receive a special order for 1,000 more widgets but that customer wants to just pay $30. It would not affect our current orders or our fixed costs and we have plenty of plant capacity.
Answer:
Effect on income= number of units soldünitary contribution margin
Explanation:
Giving the following information:
We receive a special order for 1,000 more widgets but that customer wants to just pay $30.
We weren't provided with enough information regarding variable costs. But, I can provide a small example and formulas.
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Variable cost per unit (materials, labor, variable overhead)= $28
To calculate the effect on income, we need to use the following formula:
Effect on income= number of units soldünitary contribution margin
Effect on income= 1,000*(30 - 28)
Effect on income= $2,000 increase
Lifeline, Inc., has sales of $603,000, costs of $255,000, depreciation expense of $62,000, interest expense of $29,000, and a tax rate of 30 percent. The firm paid out $45,000 in cash dividends. What is the net income for this firm?
Answer:
The net income of this firm is $179,900.
Explanation:
Net income of firm refers to sales of the firm minus cost of goods, operating expenses, selling and administrative expenses, depreciation, interest expense, taxes, and among others.
Net income is also referred to as net earnings and investors usually employ it as a metric to determine the amount by which a firm's revenue is greater than its expenses.
For this question, net income can be determined by preparing the firm's income statement as follows:
Lifeline, Inc.
Income Statement
For the Year ...
Particular Amount ($)
Sales 603,000
Cost of sales (255,000)
Gross profit 348,000
Depreciation expense (62,000)
Interest expense (29,000)
Income bore tax 257,000
Tax (30% * 257,000) (77,100)
Net income 179,900
Dividends (45,000)
Retained earnings 134,900
From the income statement above, the net income of this firm is $179,900.
Which of the following QuickBooks features can be used to save a transaction that will be re-used in the future?
A. Saved transactions
B. Memorized transactions
C. Repeat transactions
D. None of the above
Answer:
B. Memorized transactions
Explanation:
When using QuickBooks, the feature that allows you to save a transaction that will be re-used in the future are known as Memorized Transactions. These are transaction templates that allow the individual to speed up data entry jobs by saving the information that will be repeated. In general, this saves time, reduces mistakes, keeps better tabs on cash in the bank, and increases bookkeeping accuracy.
The capital expansion will cost 320,000. they are planning on receiving a revenue of 3.00 per unit and a varible cost of 1.20 per unit. How many units are needed to break even?
Answer:
177,777.78
Explanation:
Breakeven point is the number of units produced and sold at which net income is equal to zero
Break even point = fixed cost / price - variable cost
320,000 / 3 - 1.2 = 177,777.78
On the first day of the fiscal year, a company issues $65,000, 6%, five-year installment notes that have annual payments of $15,431. The first note payment consists of $3,900 of interest and $11,531 of principal repayment. Journalize the following transactions. Be sure to include the year in the date for both entries. Refer to the Chart of Accounts for exact wording of account titles.
2016
Jan. 1 Installment notes are issued
2017
Jan. 1 First annual note payment is made
Answer: Please see explanation column for answer.
Explanation:
a) Journal to record issuance of Installment notes
Date Account Debit Credit
Jan. 1, 2016 Cash $65,000
Notes payable $65,000
b) Journal to record First annual note payment
Date Account Debit Credit
Jan. 1, 2017 Interest expense $3,900
Notes payable $11, 531
Cash $15,431
The company had a net income of $248,462, and depreciation expenses were equal to $72,487. What is the firm's cash flow from financing activities?
Complete Question:
The complete question can be seen the in the attachment at the end of the solution of the question.
Answer:
Option B. -$182,057
Explanation:
The Cash flow from financing activities can be calculated by using the following formula:
Cash flow from financing activities = Changes in the equity finance
+ Changes in long term borrowings + Changes in short term borrowings
- Interest paid - Dividends paid
Here
Changes in the equity = $175,000 common stock in year 2008
- $125,000 common stock in year 2008 = $50,000
Changes in long term Borrowings = $61,290 - $78,445 = - $17,155
Changes in short term Borrowings = $16,753 - $12,004 = $4749
Interest paid is $0 because interest rate is not given hence we can't calculate it.
Dividends paid = $190,568 Opening Retained Earnings + $248,462 Net Profit for the year - $219,379 Closing Retained Earnings = $219,651
Now, by putting values in the above equations, we have:
Cash flow from financing activities = $50,000 - $17,155 + $4749 - 0 - $219,651 = -$182,057
____________ has been at the center of the changes taking place that affect the supply chain. Group of answer choices logistics warehousing technology customer power
Answer:
technology
Explanation:
Technology has changed the mode of supply of products to customers.
It has increased the efficiency of supply chain and has also increased the speed of supply
For example, due to technology one can now track ones orders. This is an example of how technology has increased the efficiency of supply chain.. It has made it easier for customers to monitor their orders and has also reduced loss of goods.
I hope my answer helps you
An investment of $800 was deposited to a bank semiannually for two years. The bank offered an interest rate of 8%, compounded continuously at the time of deposit. How much money will be in the account at the end of two years
Answer:
The amount of money that will be in the account at the end of two years is $3,533.06.
Explanation:
Since the deposit will be made at the beginning of each period, the relevant formula to use is the formula for calculating the Future Value (FV) of an Annuity Due is employed as follows:
FV = M * {[(1 + r)^n - 1] ÷ r} * (1 + r) ................................. (1)
Where,
FV = Future value or the amount in the account after 2 years =?
M = Semiannual deposit = $800
r = Semiannual interest rate = 8% ÷ 2 = 4%, 0.04
n = Number of periods the deposit will be made = 2 years × 2 = 4
Substituting the values into equation (1), we have:
FV = $800 * {[(1 + 0.04)^4 - 1] ÷ 0.04} * (1 + 0.04)
FV = $800 * 4.246464 * 1.004
FV = $3,533.06
Therefore, the amount of money that will be in the account at the end of two years is $3,533.06.