Answer and Explanation:
The items that should be reported on the cash flow statement is shown below;
On March 12 Purchase of fixed assets - investing activity - deducted - $104,300
On Oct 4 Sale of fixed assets - investing activity - added - $63,840
Gain on sale of fixed assets - operating activities - deducted - $31,710 ($95,550 - $63,840)
Suppose that if the Doombug toy is dropped, the production and sale of other Draper toys would increase so as to generate a $16,000 increase in the contribution margin received from these other toys. If all other conditions are the same, the financial advantage (disadvantage) from discontinuing the production and sale of Doombugs would be:
Answer:
$6,000 Decrease
Explanation:
Sales$150,000
Calculation to determine the financial advantage (disadvantage) from discontinuing the production and sale of Doombugs would be:
First step is to calculate the Profit from Doombugs
Sales 150,000
Less Variable expenses 120,000
Contribution margin 30,000
Avoidable fixed expenses 8,000
Profit from Doombugs $22,000
Now let calculate the financial advantage (disadvantage)
Financial advantage (disadvantage)=-$22,000+$16,000
Financial advantage (disadvantage)=-$6,000 Decrease
Therefore the financial advantage (disadvantage) from discontinuing the production and sale of Doombugs would be:$6,000 Decrease
Find the sales tax and total cost of an espresso machine that costs $77.95. The tax rate is 8%. Round your answer to the nearest cent.
Answer:
About 84.2
Explanation:
8% of 78.00 = 6.24
78.00 + 6.24 = 84.24 (Around 84.2
apologies if wrong
iSooky has a spotter truck with a book value of $52,000 and a remaining useful life of 5 years. At the end of the five years the spotter truck will have a zero salvage value. The market value of the spotter truck is currently $38,000. iSooky can purchase a new spotter truck for $132,000 and receive $32,200 in return for trading in its old spotter truck. The new spotter truck will reduce variable manufacturing costs by $26,200 per year over the five-year life of the new spotter truck. The total increase or decrease in income by replacing the current spotter truck with the new truck (ignoring the time value of money) is:
Answer:
Increase by $31,200
Explanation:
Retain Truck Replace Truck Net Increase
Sale price of old Truck $0 $32,200 $32,200
Cost of New Truck $0 -$132,000 -$132,000
Variable manuf. cost -$131,000 $0 $131,000
Net Income -$131,000 -$99,800 $31,200
The total increase in income by replacing the old Truck is $31,200.
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Umm Chile... anyway so
"You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 6 percent, –13 percent, 24 percent, 18 percent, and 15 percent. The average inflation rate over this period was 3 percent and the average T-bill rate was 4.35 percent. What was the average real return on the company's stock? [First find average of the nominal returns and use Fisher's equation to find average real return]"
Answer:
6.80%
Explanation:
The average nominal returns is the sum of the returns for 5 years divided by the number of returns considered( i.e 5, 5 returns for 5 years)
average nominal returns=(6%-13%+24%+18%+15%)/5
average nominal returns=10.00%
The Fisher's equation is shown thus:
(1 + i) = (1 + r) (1 + π)
i=nominal return=10.00%
r=average real return=the unknown
π=inflation rate=3%
(1+10.00%)=(1+r)*(1+3%)
1.10=(1+r)*1.03
1+1=1.10/1.03
r=(1.10/1.03)-1
r=6.80%
The balance sheet data below pertain to American Pulp and Paper for the recent year ended. In addition, sales were $60 million. For the coming year, management believes that sales will increase by 20% to a total of $72 million. The profit margin is expected to be 5%, and the dividend payout ratio is targeted at 40%. No excess capacity exists. Determine the additional funds needed (AFN) in millions of dollars for the coming year using Additional Funds Needed (AFN) Equation Method.
Answer:
$0.24 million
Explanation:
Calculation to Determine the additional funds needed (AFN) in millions of dollars for the coming year using Additional Funds Needed (AFN) Equation Method
Additional Funds Needed (AFN) =[ (14/60)(12) - (2/60)(12)]- (0.05)(72)(.6)
Additional Funds Needed (AFN) = ($2.8 - 0.4) -$2.16
Additional Funds Needed (AFN) =$0.24 million
Therefore the additional funds needed (AFN) in millions of dollars for the coming year using Additional Funds Needed (AFN) Equation Method is $0.24 milion
If you get in an accident with a hit-and run driver, ___ will cover any damage. a. collision insurance c. medical payments b. comprehensive physical insurance d. uninsured motorist insurance
Answer:
A.
Explanation:
Collision insurance covers anything from a car accident you did, or someone else did.
Lisa Co. paid cash for all of the voting common stock of Victoria Corp. Victoria will continue to exist as a separate corporation. Entries for the consolidation of Lisa and Victoria would be recorded in Group of answer choices A worksheet. Lisa's general journal. Victoria's general journal. Victoria's secret consolidation journal. The general journals of both companies.
Answer: worksheet
Explanation:
The entries for the consolidation of Lisa and Victoria would be recorded in a worksheet.
Consolidation worksheet refers to the tool that is used in the preparation of the consolidated financial statements of both a parent company and the subsidiaries.
The consolidation worksheet is important as it shows the individual book values for the parents company and the subsidiaries.
At the beginning of the year, Nothing More, Corp., had a long-term debt balance of $37,929. During the year, the company repaid a long-term loan in the amount of $10,839. The company paid $4,235 in interest during the year, and opened a new long-term loan for $9,525. What was the cash flow to creditors during the year
Answer:
$5549
Explanation:
Calculation to determine the cash flow to creditors during the year
Using this formula
Cash flow to creditors =Interest -New debt
Let plug in the formula
Cash flow to creditors=4235-(9525-10,839)
Cash flow to creditors=4235-(-1314)
Cash flow to creditors =$5549
Therefore the cash flow to creditors during the year is $5549
Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system. Aug. 1 Purchased merchandise with an invoice price of $108,000 and credit terms of 3/10, n/30. Aug. 11 Paid supplier the amount owed from the August 1 purchase.
Answer:
Supplier or creditor ac Dr .... to Cash ac Cr
Explanation:
Company records purchases using the gross methodPurchase ac Dr .. to Creditor ac Cr
{ Asset / Expense increase debit , liability increase credit }
Paid supplier the amount owed from the August 1 purchase.Supplier or creditor ac Dr .... to Cash ac Cr
{ Liability decrease debit , Asset decrease credit }
A worker may prefer to be classified as an employee (rather than an independent contractor) for which of the following reasons: a.To avoid the overall limitation (50%) on unreimbursed business entertainment expenses. b.To claim unreimbursed work-related expenses as a deduction for AGI. c.To avoid the limitations on unreimbursed work-related expenses. d.To avoid the self-employment tax.
Answer:
To avoid the self-employment tax
Explanation:
The purpose of the self-employment tax is to provide Social Security and Medicare coverage and benefits for individuals who work for themselves. Self-employment income is the net income from a trade, business, or profession operated by a sole proprietor or partnership even if the business is full-time or part-time. They are exempted because they are employed by others.
Some groups who are exempt from self-employment tax includes:
1. Non resident aliens
2. Aliens who work for international organizations and foreign governments 3. Members of certain religious sects who meet requirements and waive all social security benefits etc.
Pretax Income From Percentage-Of- Completion Completed Contract Difference 2017 $1,024,000 $657,000 $367,000 2018 1,280,000 821,250 458,750 (a) Incorrect answer iconYour answer is incorrect. Assuming that the tax rate is 40%, what is the amount of net income that would be reported in 2018
Answer: $768,000
Explanation:
In 2018 the Net income is based on the pretax income from percentage of completion of $1,280,000.
Net income = Pretax income * ( 1 - tax rate)
= 1,280,000 * (1 - 40%)
= $768,000
All of the following statements characterize the traditional personal selling approach EXCEPT: a. Traditional selling focuses on closing sales. b. Traditional selling uses short-term follow-ups that focus on product delivery. c. Traditional personal selling takes a team approach to the account. d. Salespeople sell products, not advice and assistance. e. Proposals and presentations used emphasize pricing and product features.
Answer:
c. Traditional personal selling takes a team approach to the account.
Explanation:
Traditional sales can be regarded as a
very seller-centric. This approach relies on grabbing attention through interruption of what people are doing, and by telling them the reason they should be interested in that particular thing you are offering, and after this having expectations for them to make a purchase on the spot. Personal selling can be regarded as an approach whereby a salesperson meets find ways to meet a potential buyer, this could be buyers face-to-face having the the aim of selling particular product or service. This is the most traditional form of sales, that is used by many salespeople.
Characteristics of the traditional personal selling approach are;
✓Proposals and presentations used emphasize pricing and product features
✓Traditional selling focuses on closing sales.
✓Traditional selling uses short-term follow-ups that focus on product delivery.
✓Salespeople sell products, not advice and assistance.
analyze how a person's ethics or values might affect his performance on the job. Can someone help me or give me a few example?
SKCM Co. has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $110,000; benefits paid to retirees, $10,000; interest cost, $7,200. The discount rate applied by the actuary was 8%. What was the beginning PBO
Answer: $90,000
Explanation:
The Interest cost is based on the beginning PBO and the discount rate by the formula:
Interest cost = Beginning PBO * Discount rate
7,200 = Beginning PBO * 8%
Beginning PBO = 7,200 / 8%
= $90,000
Activity A1 takes 5 weeks, A2 takes 7 weeks, and A3 takes 4 weeks with a 50% probability and 10 weeks with a 50% probability. What is the project completion time under the best-case scenario, that is, A3 is early and takes 4 weeks
Answer:
12
Explanation:
The computation of the project completion time under the best-case scenario is shown below;
= Activity A1 weeks taken + activity A2 weeks taken
= 5 weeks + 7 weeks
= 12
We simply added the time taken by activity 1 and activity 2 so that the project completion time could come
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Answer:
you bum
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you bum
hope this helps
have a good day :)
Explanation:
Present values Suppose going to college costs 20,000 a year. The average earnings of a highschool graduate are 20,000 a year. By going to college, suppose one can expect to earn 50,000 a year. Set up the expressions for the present value of benefits and costs, and the net present value of a college education if the interest rate is 10%.How does this change if the interest rate is 15%
Answer:
Annual benefit from college education (Increase in earnings) = $50,000 - $20,000 = $30,000
Assuming 4 years of college study period
The net present value of a college education if the interest rate is 10% is as follows:
Net present value = PV of benefits - PV of costs
Net present value = Annual benefit*P/A(10%,4) - Annual costs of attending college*P/A(10%,4)
Net present value = 30,000 * P/A(10%,4) - 20,000 * P/A(10%,4)
Net present value = (30,000 - 20,000) * P/A(10%,4)
Net present value = 10,000 * P/A(10%,4)
Net present value = 10,000 * 3.1699
Net present value = $31,699
How does this change if the interest rate is 15%?
Net present value = 30,000 * P/A(15%,4) - 20,000 * P/A(15%,4)
Net present value = (30,000 - 20,000) * P/A(15%,4)
Net present value = 10,000 * 2.855
Net present value = $28,550
In the current year, she sold her interest in Activity D for a $10,000 gain. Activity D, which had been profitable until last year, had a current loss of $1,500. Answer the following questions to determine how the sale of Activity D affects Sarah's taxable income in the current year. a. The amount of suspended losses carried forward to the year of the sale is $fill in the blank 1 20,000 . b. What amount of the suspended losses is allocated to Activity D
Answer:
a. -$20,000
b. -$2,000
Explanation:
a. The amount of suspended losses carried forward to the year:
= 30,000 + (-30,000) + (-15,000) + (-5,000)
= -$20,000
b. Suspended losses allocated to Activity D:
First find the total amount of losses:
= -30,000 - 15,000 - 5,000
= -$50,000
Activity B accounted for -$5,000 of this loss.
Suspended losses to be allocated to D would therefore be:
= -5,000 / - 50,000 * -20,000
= -$2,000
Job Costs At the end of April, Prichard Company had completed Jobs 50 and 51. Job 50 is for 1,000 units, and Job 51 is for 500 units. The following data relate to these two jobs: On April 20, raw materials were requisitioned for production as follows: 700 units for Job 50 at $18 per unit and 1,400 units for Job 51 at $18 per unit. During April, Prichard Company accumulated 300 hours of direct labor costs on Job 50 and 1,100 hours on Job 51. The total direct labor was incurred at a rate of $20 per direct labor hour for Job 50 and $12 per direct labor hour for Job 51. The predetermined factory overhead rate is $6.00 per direct labor hour. a. Determine the balance on the job cost sheets for Jobs 50 and 51 at the end of April. Job 50 $ fill in the blank 1 Job 51 $ fill in the blank 2 b. Determine the cost per unit for Jobs 50 and 51 at the end of April. Round all answers to the nearest whole cent. Job 50 $ fill in the blank 3 Job 51 $ fill in the blank 4
Answer:
Prichard Company
At the end of April:
Job 50 Job 51
The balance on the job cost sheets $20,400 $45,000
The cost per unit $20.40 $90
Explanation:
a) Data and Calculations:
Job 50 Job 51
Units produced 1,000 500
Raw materials 700 1,400
Cost of raw materials per unit $18 $18
Total cost of raw materials $12,600 $25,200
Total direct labor hours 300 1,100
Direct labor rate per hour $20 $12
Total cost of direct labor $6,000 $13,200
Factory overhead $1,800 $6,600
Predetermined overhead rate = $6 per direct labor hour
Total cost of raw materials $12,600 $25,200
Total cost of direct labor 6,000 13,200
Factory overhead applied 1,800 6,600
Total cost on April 30 $20,400 $45,000
Units produced 1,000 500
Cost per unit $20.40 $90
Company X currently has a capital structure that consists of 40% equity, 20% preferred equity, and 40% of debt. The risk-free rate is 3% and the market risk premium is 8%. The company's equity beta is 1.1. The dividend yield for the preferred equity is 6%. The corporate tax rate is 21%, and the cost of borrowing for company X is 5%. What is the WACC for company X
Answer:
14.58%
Explanation:
WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate) + weight of preferred equity x dividend yield
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
r= 3% + 1.1 x 8 = 11.8
equity = 0.4 x 11.8% = 4.72
d = 0.4 x 5 x (1 -0.21) = 1.58
p = 0.2 x 6 = 1.2
11.8 + 1.58 + 1.2 =
Scenario C. Victor, the president of Tortoise Bay Pharmaceuticals Inc., sends a memo to his vice presidents regarding new procedures for succession planning in the company. The vice presidents meet informally to discuss the new procedures. When the procedures are announced to the other employees, they form feedback teams. These teams draft memos providing feedback to the vice presidents and CEO regarding the advantages, disadvantages, and potential problems with the new procedures. The original memo sent by the president of the company is an example of
Answer:
Tortoise Bay Pharmaceuticals Inc.
The original memo sent by the president of the company is an example of
downward communication.
Explanation:
Whereas upward communication flows from the lower levels of an organization to higher ranks, with downward communication, information flows from one top level to a lower level in the organization's hierarchy. For example, the original memo sent by the CEO of Tortoise Bay Pharmaceuticals Inc. to his vice presidents is a downward communication. The memos that provide employees' feedback (an efficient communication feature) to the vice presidents and the CEO about the new procedures are examples of upward communication.
g Suppose you own a jewelry store. In exchange for a discount on your burglary insurance premium, you promise the insurer that you will keep a trained guard dog on the premises at ALL times, even when the store is closed. You decide one evening to take the dog home with you (it's his birthday and you want to give him a night off) instead of leaving him in the store. A burglar breaks in and steals everything that night. The insurance company finds out the dog wasn't in the store when the burglary happened and denies your claim. WHY
Answer:
The store's insurance company is right to deny the claim, provided it is written down in the insurance policy agreement between the store and the insurance company. The policy agreement requires the keeping of a trained guard dog on the premises at ALL times.
Explanation:
The violation of a policy condition can only be overlooked if it is not stated in the insurance agreement. The promise to keep a trained guard dog on the premises is a policy condition. Taking the dog home for a night violates that condition. You could have brought a substitute dog on the night of the dog's birthday. This way, it could have frustrated the burglar's efforts on the faithful day.
Gina borrows from Regional Loan Company the funds to buy a car. The car secures the debt. Gina defaults on the loan. Regional takes possession of the car, planning to sell it to recover some of the unpaid debt. Before the creditor sells the car or enters into a contract for its sale, Gina can pay what she owes and take back the car. This is
Answer:
right of redemption allows delinquent borrower to reclaim property if they are able to repay their obligations in time.
A company has the following expenditures during the year. Advertising $ 200,000 Employee training 25,000 Customer outreach and consultation 175,000 The company believes that these efforts have increased the fair value of the entire company by $50,000. How much goodwill can the company recognize at the end of the year associated with these expenditures
Answer:
$0
Explanation:
Given that;
Advertising expenses = $200,000
Employee training = $25,000
Consumer outreach and consultation = $175,000
Since it is mentioned that this cost would be increased, the fair value of the entire company by $50,000
Hence, there is no information related to the takeover of the business. This implies that the goodwill recognized by the company is zero
Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock:
Common stock, $1 par value, 200,000 shares.
Preferred stock, $10 par value, 6 percent, 50,000 shares.
During January and February, the following stock transactions were completed:
a. Collected $196,000 cash and issued 14,000 shares of common stock.
b. Issued 12,000 shares of preferred stock at $24 per share; collected in cash.
Net income for the year was $44,000; cash dividends declared and paid at year-end were $11,000.
Required:
Prepare the stockholders' equity section of the balance sheet at December 31.
Answer and Explanation:
The preparation of the stockholders' equity section of the balance sheet at December 31 is presented below:
Contributed Capital:
Common Stock [14000 shares × $10 par] $14,000
Preferred Stock [12000 shares × $10 par] $120,000
Paid in Capital in excess of par - Preferred Stock ((12,000 × $24) - $120,000) $168,00 0
Paid in Capital in excess of par - Common Stock ($196,000 - $14,000) $182,000
Total Contributed Capital $484,000
Retained Earnings ($44,000 - $11,000) $33,000
Total Stockholder's Equity $517,000
A coal mine was acquired at a cost of $4,000,000. No salvage value was expected and the estimated number of units available for production was 4,000,000 tons. During the first year, 440,000 tons of coal was mined and sold. The depletion expense for the first year was
Answer:
$440,000
Explanation:
The depletion of the coal mine can be calculated using the formula below;
Depletion expense for the year
= (Cost of mine - Salvage value) × (Tons of coal sold in the year/Total tons capacity of the mine)
Given that;
Cost of mine =$4,000,000
Salvage value = 0
Tons of coal sold in the year = 440,000 tons
Total tons capacity of the mine = 4,000,000 tons
Therefore,
Depletion expense for the year
= (4,000,000 - 0) × (440,000/4,000,000)
= 4,000,000 × 0.11
= $440,000
Suppose that furniture production encompasses the following stages: Stage 1: Trees are sold to lumber company. $1,800 Stage 2: Lumber is sold to furniture company. $4,000 Stage 3: Furniture company sells furniture to retail store. $8,200 Stage 4: Furniture store sells furniture to consumer. $12,500 Instructions: Enter your responses rounded to the nearest whole number. a. What is the value added at each stage
Answer:
Stage 1 value added $1,800
Stage 2 value added $2,200
Stage 3 value added $4,200
Stage 4 value added $4,300
Explanation:
Calculation to determine the value added at each stage
Stage 1 value added = $1,800
Stage 2 value added =$4,000 – $1,800
Stage 2 value added=$2,200
Stage 3 value added = $8,200 – $4,000
Stage 3 value added = $4,200
Stage 4 value added =$12,500 – $8,200
Stage 4 value added =$4,300
Therefore the value added at each stage are:
Stage 1 value added $1,800
Stage 2 value added $2,200
Stage 3 value added $4,200
Stage 4 value added $4,300
Zoie makes 2 products from a common input. Each product may be sold at the split-off point or processed further. The following is known about each product: Product 1 Product 2 Allocated joint processing costs 21200 35700 Sales value at split-off point 38100 19200 Costs of further processing 17000 19900 Sales value after further processing 30000 28300 What is the minimum amount the company should accept if Product 1 is sold at the split-off point
Answer:
Zoie
The minimum amount the company should accept if Product 1 is sold at the split-off point is:
= $30,000.
Explanation:
a) Data and Calculations:
Product 1 Product 2
Allocated joint processing costs 21,200 35,700
Sales value at split-off point 38,100 19,200
Costs of further processing 17,000 19,900
Sales value after further processing 30,000 28,300
The minimum amount the company should accept if Product 1 is sold at the split-off point is $30,000.
b) Further processing of Product 1 does not make economic sense. Zoie should sell the product at split-off point at $38,100. Similarly, based on the facts provided, Product 2 hardly deserves further processing.
To temporarily offset a depreciation in the dollar's exchange value, the Federal Reserve could ____ the U.S. money supply which would promote a (an) ____ in U.S. interest rates and a (an) ____ in investment flows to the United States. a. Increase, decrease, decrease b. Increase, increase, increase c. Decrease, decrease, increase d. Decrease, increase, increase
Answer:
D
Explanation:
depreciation occurs when the value of a currency falls relative to the value of another currency,
for example, if the exchange rate is $1 = 190 naira and after a period, exchange rate is $1 = 380.50 naira. it can be said that the naira has depreciated against the dollar
To mitigate against deprecation, contractionary policies should be carried out
contractionary policies reduces the money supply in the economy. When there is a reduction in money supply, interest rate increases and this encourages the flow of funds as it is more profitable to do business in that country