Answer: a. have the authority to enter into new contracts with subcontractors, material suppliers, and workers
Explanation:
If the partners elect to finish the job, they will legally have the authority to enter into new contracts with the necessary outside contractors needed to get the job done.
This is because the job was agreed to with the partners and with the dissolution of the partnership, contracts with these contractors were cancelled. Since the partners however want to pursue the job, they are free to do so but will need to get new contracts to replace the old cancelled ones.
How do you know what put in the balance sheet ???? I don't understand!!!!!
Balance Sheet Accounts
100 Assets 110 Cash
112 Accounts Receivable
115 Inventory
116 Estimated Returns Inventory
117 Office Supplies
118 Prepaid Insurance 120 Land
123 Store Equipment
124 Accumulated Depreciation —Store Equipment
125 Office Equipment
Income Statement Accounts
400 Revenues
410 Sales
500 Costs and Expenses
510 Cost of Goods Sold
520 Sales Salaries Expense 521 Advertising Expense
522 Depreciation Expense— Store Equipment
523 Delivery Expense
529 Miscellaneous Selling Expense
530 Office Salaries Expense
531 Rent Expense
126 Accumulated Depreciation —Office Equipment
200 Liabilities
210 Accounts Payable
211 Salaries Payable
212 Unearned Rent
213 Customer Refunds Payable
215 Notes Payable 300 Stockholders’ Equity
310 Common Stock 311 Retained Earnings 312 Dividends
532 Depreciation Expense— Office Equipment
533 Insurance Expense
534 Office Supplies Expense
539 Misc. Administrative Expense
600 Other Revenue 610 Rent Revenue
700 Other Expense
710 Interest Expense
Answer:
The accounts with numbers starting with 1, 2,3
Explanation:
Clemmens Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for August appear below: Sales revenues, Consumer $390,000 Sales revenues, Commercial $530,000 Variable expenses, Consumer $179,000 Variable expenses, Commercial $265,000 Traceable fixed expenses, Consumer $59,000 Traceable fixed expenses, Commercial $64,000 In addition, common fixed expenses totaled $265,000 and were allocated as follows: $135,000 to the Consumer business segment and $130,000 to the Commercial business segment. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is: Group of answer choices $88,000 $353,000 $476,000 -$177,000
Answer:
Net Operating income of the company is $88,000.
Explanation:
Segmented Income Statement
Consumer Commercial Total
Sales revenue 390000 530000 920000
Less: Variable cost 179000 265000 444000
Contribution margin 211000 265000 476000
Less: Traceable fixed cost 59000 64000 123000
Segment margin 152000 201000 353000
Less: Common Fixed cost 265000
Net Operating income 88000
Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation.
Per Unit Total
Direct materials $410
Direct labor $340
Variable manufacturing overhead $ 75
Fixed manufacturing overhead $1,708,000
Variable selling and administrative expenses$ 56
Fixed selling and administrative expenses $ 560,000
The company has a desired ROI of 22%. It has invested assets of $54,430,000. It anticipates production of 2,800 units per year.
1).Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
2). Compute the desired ROI per unit. (Round answer to 0 decimal places, e.g. 125.)
3). Compute the markup percentage and target selling price using absorption-cost pricing. (Round the markup percentage to 3 decimal places, e.g. 2.250% and the target selling price to 0 decimal places, e.g. 125.)
Answer:
Gibbs Corporation
1) Fixed cost per unit
= $810
2) ROI per unit
= $4,277
3) Markup percentage = Total cost per unit
= 252-927%
3b) Target selling price, using absorption costing
= Total cost per unit plus Markup
= $5,960
Explanation:
a) Data and Calculations:
Per Unit Total
Direct materials $410
Direct labor $340
Variable manufacturing overhead $ 75
Fixed manufacturing overhead $1,708,000
Variable selling and administrative expenses $ 56
Fixed selling and administrative expenses $ 560,000
Total variable and fixed costs $881 $2,268,000
ROI = 22% = $11,974,600 ($54,430,000 * 22%)
Invested assets = $54,430,000
Estimated annual production units = 2,800
1) Fixed cost per unit = $810 ($2,268,000/2,800)
2) ROI per unit = $4,277 ($11,974,600/2,800)
3) Markup percentage = Total cost per unit = $4,277/$1,691 * 100 = 252.927%
3b) Target selling price, using absorption costing
= Total cost per unit plus Markup = $5,960 ($1,691 + $4,277)
For each separate case, record the necessary adjusting entry.
1. On July 1, Lopez Company paid $1,800 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31.
2. Zim Company has a Supplies account balance of $6,200 at the beginning of the year. During the year, it purchased $2,600 of supplies. As of December 31, a physical count of supplies shows $1,100 of supplies available.
Answer:
Item 1
Debit : Insurance $1,800
Credit : Prepaid insurance $1,800
Item 2
Debit : Supplies expense $7,700
Credit : Supplies $7,700
Explanation:
Times Inc. is trying to develop an asset-financing plan. The firm has $540,000 in temporary current assets and $440,000 in permanent current assets. Times also has $640,000 in fixed assets. Assume a tax rate of 40 percent. (Do not round intermediate calculations. Round your answers to the nearest whole number.) a. Construct two alternative financing plans for Times. One of the plans should be conservative, with 80 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. The current interest rate is 14 percent on long-term funds and 8 percent on short-term financing. Compute the annual interest payments under each plan. Annual Interest Conservative $ Aggressive $ b. Given that Times' earnings before interest and taxes are $420,000, calculate earnings after taxes for each of your alternatives. Earnings After Taxes Conservative $ Aggressive $ c. What would the annual interest and earnings after taxes for the conservative and aggressive strategies be if the short-term and long-term interest rates were reversed
Answer:
Times Inc.
Conservative Aggressive
a) Annual interest payments $207,360 $184,275
b) Earnings After Taxes $127,584 $141,475
c) Annual interest payments $149,040 $172,125
Earnings After Taxes $162,576 $148,725
Explanation:
a) Data and Calculations:
Temporary current assets = $540,000
Permanent current assets = 440,000
Fixed assets = 640,000
Total assets = $1,620,000
Assumed tax rate = 40%
Conservative Aggressive
Financed by long-term sources 80% 56.25%
Long-term finance $1,296,000 $911,250
Short-term finance 324,000 (20%) 708,750 (43.75%)
Annual interest payments:
Long-term interest rate = 14% $181,440 $127,575
Short-term interest rate = 8% 25,920 56,700
Total annual interest payments $207,360 $184,275
b) Earnings before
interest and taxes $420,000 $420,000
Annual interest payments 207,360 184,275
Earnings before taxes $212,640 $235,725
Income taxes (40%) 85,056 94,250
Earnings After Taxes $127,584 $141,475
Annual interest payments:
Long-term interest rate = 8% $103,680 $72,900
Short-term interest rate = 14% 45,360 99,225
Total annual interest payments $149,040 $172,125
c) Earnings before
interest and taxes $420,000 $420,000
Annual interest payments 149,040 172,125
Earnings before taxes $270,960 $247,875
Income taxes (40%) 108,384 99,150
Earnings After Taxes $162,576 $148,725
How can you establish rapport during your first meeting with guest ?
Carolina's Hats has the following sales, payroll, and property factors: North Carolina South Carolina Sales 75.03% 22.51% Payroll 68.62% 21.28% Property 78.45% 14.56% What is Carolina's Hats North and South Carolina apportionment factors if North Carolina uses an equally weighted three-factor formula and South Carolina uses a double-weighted sales factor formula
Answer:
North Carolina 74.03%
South Carolina 20.22%
Explanation:
Calculation to determine Carolina's Hats North and South Carolina apportionment factors if North Carolina uses an equally weighted three-factor formula and South Carolina uses a double-weighted sales factor formula
North Carolina=[(75.03 + 68.62 + 78.45)/3]
North Carolina=(222.1/3)
North Carolina 74.03 %
South Carolina = [(22.51 + 22.51 + 21.28 + 14.56)/4]
South Carolina = (80.86/4)
South Carolina= 20.22%
Therefore Carolina's Hats North and South Carolina apportionment factors will be:
North Carolina 74.03%
South Carolina 20.22%
What is technical profession?Give examples.
Answer:
Technical profession is a highly skill based profession in which a practical knowledge is required.Example:engineering in civil,mechanical,computer e.t.c.
As the information security officer at your organization, you are concerned that a vendor with access to your purchasing application might become compromised and act as a vector through which your systems may be attacked. You want to establish a vendor risk management process. You would most likely engage all of the following groups EXCEPT:_________
a. Procurement
b. Human Resources
c. Legal
d. Vendor Management
Answer:
Human resources
Explanation:
As an information security officer, I need to establish a vendor risk management process. I will have to engage
Procurement - because that department is directly involved in purchasing and dealing with vendors.
Legal - as I am looking to implement a risk management process, a legal department will help out defining the policy and to avert any lawsuits or government systems
Vendor Management - Because that group is directly dealing with vendors for their registration and other processes.
Human resource is not engaged because we are not looking for new manpower for HR to hire / recruit which makes them irrelevant.
Which career is best described by someone who organizes and tracks merchandise during storage and display?
O Wholesale Buyer
Marking Clerk
Purchasing Agent
Stock Clerk
Answer:
stock clerk
Explanation:
Answer:
D Stock Clerck :))))
Farina Foods manufactures a dog food product called Special Scoops. Farina currently has 20,000 bags of Special Scoops in inventory. The variable production costs per bag are $1.50 and total fixed costs are $20,000 per period. The dog food can be sold as is for $7 per bag, or it can be processed further into Prime Scoops and Canine Sports at an additional processing cost of $3,000. This additional processing will yield 15,000 bags of Prime Scoops, which can be sold for $8 per bag, and 10,000 bags of Canine Sports, which can be sold for $6 per bag. The decision that Farina should make and the reason is:
Answer:
B. process Special Scoops further into Prime Scoops and Canine Sports to increase profits by $37,000.
Explanation:
Calculation to determine what the decision that Farina should make and the reason is
First step is to calculate the Special scoops
Special scoops = 20,000 bags x ($7 - $1.50) - $20,000
Special scoops =20,000 bags x$5.5-$20,000
Special scoops =$110,000-$20,000
Special scoops = $90,000
Second step is to calculate the Prime scoops
Prime scoops = 15,000 bags x $8 + 10,000 bags x $6 - (20,000 bags x $1.50 + $20,000 + $3,000)
Prime scoops =$120,000+$60,000-($30,000+$20,000+$3,000)
Prime scoops = $180,000 - $53,000
Prime scoops = $127,000
Now let calculate the Profit increase
Profit increase =$127,000 - $90,000
Profit increase= $37,000
Therefore the decision that Farina should make and the reason is: PROCESS SPECIAL SCOOPS FURTHER INTO PRIME SCOOPS AND CANINE SPORTS TO INCREASE PROFITS BY $37,000.
Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities using the indirect method?
A. An increase in wages payable will be added to net income.
B. An increase in prepaid expenses will be subtracted from net income.
C. An increase in income taxes payable will be subtracted from net income.
D. A gain on the sale of a depreciable asset will be subtracted from net income.
Answer:
C. An increase in income taxes payable will be subtracted from net income.
Explanation:
First and foremost, an increase in current assets such as prepaid expenses means that the company parted with cash since it has made payment in advance prior to the expenses being incurred, hence, it is a cash outflow while a decrease in the current asset has an opposite impact.
However, an increase in current liabilities means the company is owing more and has avoided a cash outflow, in essence, it is treated as cash inflow, in other words, the increase in income taxes payable is an inflow not deducted as if it is an outflow
Within the manufacturing plant of Reliable Garment Production Co., a company that makes clothing for many of the top fashion labels, there is a great deal of conflict. The employees who assemble the garments are extremely frustrated. They are rarely able to meet their daily production quotas because the employees who cut the fabricare almost always running behind schedule. Which of the following is the most likely source of this conflict?
a. Differentiation in orientations
b. Sequential interdependence
c. Competition for limited resources
d. Reciprocal interdependence
Answer:
b. Sequential interdependence
Explanation:
Sequential interdependence occurs when the output or work of one department is necessary for the performance of another department.
So a delay in output in one department leads to lack of work by the second department.
This is the case in the given instance where the employees who assemble the garments are rarely able to meet their daily production quotas because the employees who cut the fabricare almost always running behind schedule.
Select all the correct locations on the image.
On the tax bracket table, choose all the marginal tax rates that will apply to a single taxpayer with a taxable income of $75,000.
We can see from the chart that the tax rate, given a person with taxable income of $75000, will be 22%.
Taxable income is what?A person's or an organization's taxable income is their gross income less any legal tax deductions. The amount of revenue an entity generates annually is what the government taxes. It can also be stated as the portion of income that is subject to income tax.
It may include all or a portion of the income, and it is reduced by other deductions and outgoings. Different sums are included as income, expenses, and other deductions depending on the nation and its system.
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Oriole Company had the following transactions during 2022: 1. Issued $310000 of par value common stock for cash. 2. Recorded and paid wages expense of $148800. 3. Acquired land by issuing common stock of par value $124000. 4. Declared and paid a cash dividend of $24800. 5. Sold a long-term investment (cost $7440) for cash of $7440. 6. Recorded cash sales of $992000. 7. Bought inventory for cash of $396800. 8. Acquired an investment in Zynga stock for cash of $52080. 9. Converted bonds payable to common stock in the amount of $1240000. 10. Repaid a 6-year note payable in the amount of $545600. What is the net cash provided by financing activities
Answer and Explanation:
The computation of the net cash provided by financing activities is shown below;
Cash flows from financing activities
Issue of common stock $310,000
Less : Cash dividends ($24,800)
Repaid notes Payable ($545,600)
Net cash flow used by financing activities ($260,400)
The positive amount represent the inflow of cash and the negative amount represent the outflow of cash
Sardi Incorporated is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 13,600 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials $ 9.40 Direct labor 6.40 Variable manufacturing overhead 2.20 Fixed manufacturing overhead 4.20 Unit product cost $ 22.20 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 30% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 3 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 6 minutes on this machine and that has a contribution margin of $5.80 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the component
Answer:
See below
Explanation:
Sardi Inc.
Cost of making components
Direct materials = $9.40
Direct labor = $6.40
Variable manufacturing overhead = $2.20
Fixed manufacturing overhead = (30% × $4.20 is avoidable) = $1.26
Opportunity cost = ($5.80 per unit ÷ 6 minutes per unit) × 3 minutes = $2.90
Total cost
= $9.40 + $6.40 + $2.20 + $1.26 + $2.90
= $22.16
Therefore, the cost of making the component should be compared to the price of buying the component at $22.16
Umber Mattresses has had issues with inventory in the past. Missed shipping and unexpected price hikes have caused production issues that have impacted its bottom line. Its leadership team has asked the production manager to prepare a recommendation for fixing the inventory issue. Which of the following would be her best response?
A. prepare a materials requirement planning review
B. move to a flexible manufacturing system
C. install a computer-aided manufacturing system
D. enlist a small group of trusted suppliers
E. switch to a multiple supplier approach
Answer: E. switch to a multiple supplier approach
Explanation:
Since the company has had issues with inventory in the past, then the recommendation of the production manager should be that the company should switch to a multiple supplier approach.
By switching to multiple supplier, the company can compare prices and also have alternative suppliers to call in case there's a challenge with a particular supplier.
Seventy percent of Parlee Corporation's sales are collected in the month of sale, 25% in the month following sale, and 5% in the second month following sale. The following are budgeted sales data for the company: January February March April Total sales $600,000 $700,000 $500,000 $300,000 Total budgeted cash collections in April would be: Group of answer choices $35,000 $125,000 $210,000 $370,000
Answer: $370,000
Explanation:
Based on the information given in the question, the total budgeted cash collections in April would be calculated as the addition of the sales value from February to April and this will be:
February sale = 5% × $700,000 = $35,000
Add: March sale = 25% × $500,000 = $125,000
Add: April Sale = 70% × $300000 = $210000
Total Collection = $370000
As a manger, it is important to determine what is driving the success of a project or product. What factors could lead to failure, what situations would be detrimental, what kind of loss is expected.
a. True
b. False
Answer:
True
Explanation:
A project manager has the responsibility of completing the project on time and deliver the project with due diligence. Hence, he/she is required to determine all the factors hindering the timely completion of project or affecting the qualitative delivery. Thus, a manger will study about factors that could affect the project both positively and negatively.
Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $170 million of 10% bonds, dated January 1, on January 1, 2018. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 12%. The price paid for the bonds was $151 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $160 million.
Required:
1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate).
4. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet?
5. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment?
Answer:
Journal Entries - Fuzzy Monkey Technologies Inc.
S/N Date Particulars Debit'Mill Credit'Mil
1 1-Jan-18 Investment in Bond $170.00
To Cash $151.00
To Discount on bond investment $19.00
(Being investment in bond recorded)
2 30-Jun-18 Cash ($170*10% *6/12) $8.50
Discount on bond investment $0.56
To Interest revenue ($151*12%*6/12) $9.06
(Being revenue recognition for bond interest
and discount amortized)
3 31-Dec-18 Cash ($170*10%*6/12) $8.50
Discount on bond investment $0.59
To Interest revenue ($151.56*12%*6/12) $9.09
(Being revenue recognition for bond interest
and discount amortized)
4. The investment is to be recorded at amortized cost on balance sheet:
= $151 + $0.56 + $0.59
= $152.15 million
5. Statement of cash flows (Partial) for 2018
Particulars Amount'mil Description
Cash flow from operating activities:
Interest received $17.00 Inflow
Cash flow from investing activities:
Cash paid for purchase of investment $151.00 Outflow
Assume you work for a company as an accountant and you have been asked to calculate the depreciation expense for each year of a new machine that your company purchased on April 1, 2021, at a cost of $ 350,000. You have estimated that the machine will have a salvage value of $15,000. The machine is expected to be used for 27,800 working hours during its 5-year life.
a) Prepare the depreciation schedule for each year of the useful life under
straight line method.
b) Compute the depreciation expense for 2021, 2022 and 2023 under units-of activity method, assuming machine usage was 2700 hours in 2021 and 3500 hours and 2200 hours in 2022 and 2023 respectively.
Answer:
a) Depreciation Schedule under Straight-Line Method:
Date Cost Depreciation Accumulated Net Book Value
Expense Depreciation
April 1, 2021 $350,000 $50,250 $50,250 $299,750
2022 350,000 67,000 117,250 232,750
2023 350,000 67,000 184,250 165,750
2024 350,000 67,000 251,250 98,750
2025 350,000 67,000 318,250 31,750
b) Depreciation expense under the units-of-activity method:
2021 2,700 * $12.05 = $32,535
2022 3,500 * $12.05 = $42,175
2023 2,200 * $12.05 = $26,510
Explanation:
a) Data and Calculations:
Cost of equipment on April 1, 2021 = $350,000
Estimated salvage value = $15,000
Depreciable amount = $335,000
Estimated useful life = 5 years
Annual Depreciation:
Straight-line method = $67,000 ($335,000/5)
Expected machine usage hours = 27,800
Depreciation rate under the unit-of-activity method = $335,000/27,800
= $12.05
McCormick Corp. reported the following on its comparative income statement:
Mariner Corp.
Income Statement - (Partial)
Years Ended December 31, 2019 and 2018
Increase (Decrease)
2019 2018
(Amounts in
millions) 2019 2018 2017 Amount Percentage Amount Percentage
Revenues 9,575 $9,300 $8,975
Cost of
Goods Sold 7,240 6,800 6,100
Gross Profit $2,335 $2,500 $2,875
Prepare a horizontal analysis of revenues and gross profit—both in dollar amounts and in percentages—for 2025. Begin by calculating the gross profit for each year, then prepare a horizontal analysis of revenues and gross profit—both in dollar amounts and in percentages—for 2025.
Answer:
McCormick Corp.
Horizontal Analysis of Revenues and Gross Profit:
Income Statement - (Partial)
Years Ended December 31, 2019 and 2018
Increase (Decrease)
2019 2018
(Amounts in millions)
2019 2018 2017 Amount % Amount %
Revenues 9,575 $9,300 $8,975 $275 2.96% $325 3.62%
Cost of
Goods Sold 7,240 6,800 6,100 $440 6.47% $700 11.5%
Gross Profit $2,335 $2,500 $2,875 -$165 -6.6% -$375 -13%
Explanation:
a) Data and Calculations:
Income Statement - (Partial)
Years Ended December 31, 2019 and 2018
Increase (Decrease)
2019 2018
(Amounts in millions)
2019 2018 2017 Amount % Amount %
Revenues 9,575 $9,300 $8,975
Cost of
Goods Sold 7,240 6,800 6,100
Gross Profit $2,335 $2,500 $2,875
Workings:
Revenue:
2019 = $275/$9,300 * 100 = 2.96%
2018 = $324/$8,975 * 100 = 3.62%
Cost of goods sold:
2019 = $440/$6,800 * 100 = 6.47%
2018 = $700/$6,100 * 100 = 11.5%
Gross profit:
2019 = $(165)/$2,500 * 100 = -.6.6%
2018 = $(375)/$2,875 * 100 = -13%
Rather than merely counting media exposures, a better measure of marketing public relations effectiveness is the ________. A) number of promotional tools required B) effect it has on its market capitalization C) change in product awareness, comprehension, or attitude D) changes observed in media behavior E) impact it has on the company's market share
Answer:
D) changes observed in media behavior
Explanation:
The public relation effectiveness is the marketing principle, that is used t measure how effectively the public relation or paid campaign is moving their paid, earned share. There are various methods to measure this such as media content analysis, social media reach and engagement, and sales figures.
Blue Spruce Corp. had the following transactions.
1. Sold land (cost $8,240) for $10,300.
2. Issued common stock at par for $21,200.
3. Recorded depreciation on buildings for $12,400.
4. Paid salaries of $7,200.
5. Issued 1,200 shares of $1 par value common stock for equipment worth $8,100.
6. Sold equipment (cost $10,800, accumulated depreciation $7,560) for $1,296.
For each transaction above, prepare the journal entry.
Answer:
1. Dr Cash $10,300
Cr Land $8,240
Cr Gain on Sale of Land $2,060
2. Dr Cash $21,200
Cr Common Stock $21,200
3. Dr Depreciation Expense $12,400
Cr Accumulated Depreciation - Building $12,400
4. Dr Salaries Expense $7,200
Cr Cash $7,200
5. Dr Equipment $8,100
Cr Common Stock $1,200
Cr Additional Paid-in Capital $6,900
6 Dr Cash $1,296
Dr Loss on Sale of Equipment $1,944
Dr Accumulaed Depreciation -Equipment $7,560
Cr Equipment $10,800
Explanation:
Preparation of the journal entry.
1. Dr Cash $10,300
Cr Land $8,240
Cr Gain on Sale of Land $2,060
($10,300-$8,240)
2. Dr Cash $21,200
Cr Common Stock $21,200
3. Dr Depreciation Expense $12,400
Cr Accumulated Depreciation - Building $12,400
4. Dr Salaries Expense $7,200
Cr Cash $7,200
5. Dr Equipment $8,100
Cr Common Stock $1,200
(1,200*$1)
Cr Additional Paid-in Capital $6,900
($8,100-$1,200)
6 Dr Cash $1,296
Dr Loss on Sale of Equipment $1,944
($10,800-$7,560-$1,296)
Dr Accumulaed Depreciation -Equipment $7,560
Cr Equipment $10,800
1. Briefly explain two possible disadvantages to a sole trader of changing to a
Private limited company.
Answer:
Sole trader has independence of decision making and unlimited liability for debts which is not the case with Private limited company
Explanation:
Two possible disadvantages to a sole trader of changing to a Private limited company are as follows -
a) As a sole trader there is unlimited liability for debts while in case of private limited company the the transfer ability of shares gets restricted.
b) The sole trader is the sole decision taken while in case of private limited company the joint decision can be taken by the co owners.
XYZ Company allocates fixed overhead costs based on direct labor dollars, with an allocation rate of $5 per DL$. XYZ sells 1,000 units of product X per month at a price of $20 per unit. The variable costs are: direct materials $5/unit, direct labor $2/unit, and variable overhead $1/unit. Compute the profit margin per unit of product X Group of answer choices $10 per unit $10.75 per unit $12 per unit $13 per unit $2 per unit
Answer:
See below
Explanation:
Given that;
Price per unit = $20
Direct labor cost = $2
Direct material cost = $5
Overhead cost = $1
Fixed overhead allocation= $5 per direct labor cost = $5 × $2 = $10
Total expenses = $2 + $5 + $1 + $10 = $18
Therefore , profit margin
= Price per unit - Total expenses
= $20 - $18
= $2
Assume that in 2018, a copper penny struck at Philadelphia mint in 1796 was sold for $480,000. What was the rate of return on this investment?
Answer:
The annual rate of return on this investment is 8.29%
Explanation:
The computation of the rate of return on this investment is shown below:
Since the copper penny is in 1795 is 1 cent
And,
1 cent = .01 dollars
Now
Year 1796 2018
Amount (in dollars) 0.01 $390,000
We know that
Future Value = Present Value × ((1 + rate )^time period)
Here,
t = 2018 - 1795 = 222
So,
.01 × ((1+rate)^(222)) = $480,000
(1+rate)^(222) = $48,000,000
1 + rate = $48,000,000^(1 ÷ 222)
1 + rate = $48,000,000^(0.004505)
1+rate = 1.082929503
rate = 0.082929503
Hence, The annual rate of return on this investment is 8.29%
Under its executive stock option plan, Z Corporation granted options on January 1, 2021, that permit executives to purchase 15 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. The options expired in 2027 without being exercised. By what amount will Z's shareholder's equity be increased as a result of having granted the options
Answer:
$60 million
Explanation:
Calculation to determine By what amount will Z's shareholder's equity be increased as a result of having granted the option
Using this formula
Increased in shareholder's equity=Fair value per option*Options granted
Let plug in the formula
Increased in shareholder's equity=$4* 15 million shares
Increased in shareholder's equity=$60 million
Therefore The amount that Z's shareholder's equity increased as a result of having granted the option is $60 million
Computo began business on June 1, 2019. The corporate charter authorized issuance of 1,000 shares of no-par common stock and 4,000 shares of $6 par, 6% cumulative preferred stock. As of the beginning of 2020, 200 shares of common stock had been issued and none of the preferred stock had been issued. If the company issues 400 shares of common stock on March 1, 2020 for $10 per share, the journal entry would include a
Answer:
d. $4,000 credit to common stock
Explanation:
The journal entry is shown below:
Since the company issued 400 shares for $10 per share
So, the journal entry is
Cash Dr $4,000
To common stock $4,000
(Being the issuance of the common stock is recorded)
here the cash is debited as it increased the assets and credited the common stock as it also increased the equity account
Regardless which form of media used, all ads can be divided into _?_types based on the kind of message conveyed.
seven
C. five
b. two
d. three
a.