Answer:
Hmm.
Explanation:
False.
Sometimes, a company can make a huge comeback even after a major decline.
he Presley Corporation is about to go public. It currently has aftertax earnings of $7,000,000, and 2,000,000 shares are owned by the present stockholders (the Presley family). The new public issue will represent 500,000 new shares. The new shares will be priced to the public at $25 per share, with a 4 percent spread on the offering price. There will also be $250,000 in out-of-pocket costs to the corporation. a. Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.)
Answer:
Missing question is "a. Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Net proceeds
b. Compute the earnings per share immediately before the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share
c. Compute the earnings per share immediately after the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share "
a. Net proceeds = Shares issued * Share price*(1-0.04) - Direct cost
Net proceeds = 500,000 * $25*(1-0.04) - $250,000
Net proceeds = 500,000*$24 - $250,000
Net proceeds = $12,000,000 - $250,000
Net proceeds = $11,750,000
b. EPS = Earnings / Shares
EPS = $7,000,000 / 2,000,000 shares
EPS = $3.50 per share
c. EPS = After tax earnings / Total shares
EPS = $7,000,000 / (2,000,000 + 500,000)
EPS = $7,000,000 / 2,500,000 shares
EPS = $2.80 per shares
Pharoah Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company’s fiscal year on November 30, 2022, these accounts appeared in its adjusted trial balance.
Accounts Payable $ 26,400
Accounts Receivable 17,100
Accumulated Depreciation—Equipment 68,000
Cash 8,000
Common Stock 35,000
Cost of Goods Sold 609,960
Freight-Out 6,440
Equipment 159,160
Depreciation Expense 13,700
Dividends 12,000
Gain on Disposal of Plant Assets 2,000
Income Tax Expense 10,000
Insurance Expense 9,000
Interest Expense 5,000
Inventory 26,100
Notes Payable 43,500
Prepaid Insurance 6,000
Advertising Expense 33,500
Rent Expense 34,000
Retained Earnings 14,100
Salaries and Wages Expense 118,740
Sales Revenue 904,000
Salaries and Wages Payable 6,000
Sales Returns and Allowances 20,000
Utilities Expense 10,300
Answer:
Net Income = $35,360
Ending retained earnings = $37,460
Total Asset = Liabilities and Stockholders' Equity = 148,360
Explanation:
Note: This question is not complete as the requirement is omitted. The complete question is therefore presented before answering the question. See the attached pdf file for the complete question with the requirement.
The answer to the question is now presented as follows:
Prepare a classified balance sheet. (List current assets in order of liquidity.)
Note: See the third part of the attached excel file for the classified balance sheet.
A classified balance sheet can be described as a balance sheet that shows assets, liabilities, and shareholders' equity of a firm that are put or classified into different subcategories of accounts.
Note that in the attached excel file, the Income Statement and the Retained Earning Statement are prepared first in order to obtain the ending retained earning that is needed under the Stockholders' Equity in the classified balance sheet.
g Larry recorded the following donations this year: $540 cash to a family in need $2,440 to a church $540 cash to a political campaign To the Salvation Army household items that originally cost $1,240 but are worth $340. What is Larry's maximum allowable charitable contribution if his AGI is $60,400
Answer:
$2780
Explanation:
Given the following donations by Larry:
Cash to family in need $540
Cash to political campaign = $540
Church donation = $2440
Donation to salvation Army household = $340 (worth)
The allowable charitable contribution when applied to the an individual's adjustable Gross income. These contribution must be made to qualified charitable organizations in other to become eligible for deduction. In the scenario above, the qualified charitable organization include the donation to church and the salvation Army household :
Hemce, maximum allowable charitable contribution is :
$(2,440 + 340) = $2780
manufactures an optical switch that it uses in its final product. TechSystems incurred the following manufacturing costs when it produced 73,000 units last year: LOADING...(Click the icon to view the manufacturing costs.) Another company has offered to sell TechSystems the switch for $13.00 per unit. If TechSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. LOADING...(Click the icon to view the outsourcing decision analysis.) TechSystems needs 82,000 optical switches next year (assume same relevant range). By outsourcing them, TechSystems can use its idle facilities to manufacture another product that will contribute $220,000 to operating income, but none of the fixed costs will be avoidable. Should TechSystems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) TechSystems Best Use of Facilities Analysis Buy and Use Facilities for Other Make Product Expected sales price of the other product × × Total variable cost of obtaining the optical switches Expected net cost of obtaining the optical switches
Answer:
Since the question is missing most of its numbers, I looked for similar question.
variable cost per unit = $1,015,000 / 73,000 = $13.9041
total fixed costs = $490,000
since fixed costs are not avoidable, but can be used to generate $220,000 in revenues, the differential analysis is the following:
Make Buy Net income increase
(decrease)
variable costs $1,140,136.20 $0 $1,140,136.20
fixed overhead $490,000 $270,000 $220,000
purchase price $0 $1,066,000 ($1,066,000)
total $1,630,136.20 $1,336,000 $294,136.20
TechSystems should outsource the production since it will be able to increase its operating profits by $294,136.20.
CEOs are limited in making policy changes regarding climate change by all of the following EXCEPT __________.
Answer: b. the necessity to think in the long term rather than the short term
Explanation:
There are policy changes that a company can make that will result in them having lower profits. For this reason, the CEO might face opposition or limitations from certain people or principles in implementing such changes.
The Board of Directors is one such limitation as they owe it to the shareholders to maximise their wealth and if climate change policy might hinder that, they might limit the policy. This reason is the same for any limitation from investor support which is linked directly to profits.
The CEO also has the same fiduciary responsibility to maximise shareholder wealth as well. The only option which is not a limiting factor therefore is the necessity to think in the long term rather than the short term.
The original cost of the truck was $32,000. What would be the journal entry for Combs Co. to record the disposal of the delivery truck
Answer:
Journal Entry for disposal (or) sale of Truck
Explanation:
Truck (asset) sold for cash, bank, or on credit {On loss}Cash ac dr (or) Bank ac (or) Debtor ac (Or) ac ... dr
P & L ac ... dr
to Truck ac ... 32000
Truck (asset) sold for cash, bank, or on credit {On gain}Cash ac dr (or) Bank ac (or) Debtor ac (Or) ac ... dr
to Truck ac ... 32000
To P & L ac
For a country A, the GDP growth rate is 8 percent and inflation is 4 percent. If the velocity of money remains constant, what is the change in real money balances
Answer:
The change in the real money balance is 12%
Explanation:
As per gievn data
GDP growth rate = 8%
Inflation = 4%
The real money change is as follow
Equation
Delta M + Delta V = Delta P + Delta Y
Where
Delta M = Real money change = ?
Delta V = Change in velocity = 0
Delta P = Inflation rate = 4%
Delta Y = GDP growth rate = 8%
Placing values in the above equation
Delta M + 0 = 4% + 8%
Delta M = 12%
Hence the money balance will increase by 12%.
On December 31, 2019, The Bates Company's revenue is $440,000 and expenses total $340,000 before consideration of the following: Accrued wages total $21,000; Accrued revenues total $56,000; Depreciation expense is $27,000; Rental revenue of $7,000 was earned; the rent from a tenant was initially recorded by Bates as unearned rent revenue; The income tax rate is 40% of income before income taxes. What is Bates' net income after consideration of the above information
Answer:
Explanation:
Revenue = $440,000
Expenses = $340000
Accrued wages = $21000
Accrued revenues = $56000
Depreciation exp = $27000
Rental value earned but not recorded = $7000
Income tax rate = 40%
Total revenue = 440000 +56000 + 7000 = $503000
Total expenses = 340000 + 21000 + 27000 = $388000
Income before tax = 503000 - 388000 = $115000
income tax = 115000 x .4 = $46000
Net income = 115000 - 46000 = $69000 .
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Division L Division Q Sales $529,000 $161,000 $368,000 Variable expenses 305,900 99,820 206,080 Contribution margin 223,100 61,180 161,920 Traceable fixed expenses 122,380 33,320 89,060 Segment margin 100,720 $ 27,860 $ 72,860 Common fixed expenses 36,030 Net operating income $ 64,690 The break-even in sales dollars for Division Q is closest to: Multiple Choice $280,790 $223,375 $446,200 $202,409
Answer:
$202,409
Explanation:
Firstly, we will need to calculate Break even in sales dollar for division Q using the formula;
= Division Q fixed cost / contribution margin ratio
Division Q fixed cost = $89,060
But,
Contribution margin ratio = Contribution margin / Sales
Contribution margin ratio = $161,920 / $368,000
Contribution margin ratio = 44%
Therefore, the Break even in sales dollar for Division Q
= $89,060 / 44%
= $202,409
The Break even in sales dollars for Division Q is closest to $202,409
What would you be willing to pay for a $1000 par, 7 1/2% coupon bond with 25 years until maturity if you wanted to earn a return of 8%
Answer:
$958.78
Explanation:
The computation of the present value is shown below:
Given that
Future value = $1,000
NPER = 25
PMT = $1,000 × 7.5% = $75
RATE = 8%
The formula is shown below:
= -PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $958.78
The same is to be considered
So I’m 13. I have a small business, and 2 months ago my mom canceled my credit card. I get paid through credit card.Since she canceled my card, I don’t have where to get paid. How can i get a credit card without my mom knowing?
Answer:
so if you are a minor you have to have a parent or guardian sign off to get you a card, I had the same issue my mom refused to get me a card even tho i worked. I just got my dad to sign on it because then my mom couldnt do anything about it because her name wasnt in it. I hope this helps, and what type of business do you have.
Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 100 $10 5/5 Purchase 250 $12 5/15 Purchase 200 $14 5/25 Purchase 250 $16 Sales were 580 units at $20. Using the LIFO method, determine the dollar value of Cost of Goods Sold for the month of May.
Answer:
.$7,280
Explanation:
Date Activity Quantity Unit Price
5/1 Beginning Inventory 100 $10
5/5 Purchase 250 $12
5/15 Purchase 200 $14
5/25 Purchase 250 $16
Sales were 580 units at $20.
Using the FIFO method, cot of goods sold is:
= (100 x $10) + (250 x $12) + (200 x $14) + (30 x $16) = $7,280
when you use the first in, first out (FIFO) method, you calculate cost of good sold using the oldest units in inventory first (not necessarily the oldest physical units but their price).
Which of the following best describes why German firms were nationalized after World War II?
A. Extract money.
B. Job preservation.
C. Ideology.
D. Happenstance.
Answer:
D. Happenstance.
Explanation:
The fact that German firms were nationalized has often been regarded as mere happenstance; meaning it just occurred based on the circumstances they were in immediately after World War II.
It thus encompasses several factors such as the cost of operations, changes in government, etc, not just one factor.
German firms were nationalized after World War II because of Happenstance.
World War II:The fact that German companies were nationalized has frequently been dismissed as a coincidence, implying that it happened simply because of the circumstances in which they found themselves following World War II.
It thus incorporates multiple aspects, not just one, such as operational costs, government changes, and so on.
So, option "D" is the correct answer to the following question.
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Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,700 hours.
TIGER EQUIPMENT INC.
Factory Overhead Cost Budget—Welding Department
For the Month Ended May 31
1 Variable costs:
2 Indirect factory wages $40,020.00
3 Power and light 20,880.00
4 Indirect materials 17,400.00
5 Total variable cost $78,300.00
6 Fixed costs:
7 Supervisory salaries $19,800.00
8 Depreciation of plant and equipment 35,700.00
9 Insurance and property taxes 18,450.00
10 Total fixed cost 73,950.00
11 Total factory overhead cost $152,250.00
During May, the department operated at 9,080 standard hours, and the factory overhead costs incurred were indirect factory wages, $42,268; power and light, $22,064; indirect materials, $18,700; supervisory salaries, $19,800; depreciation of plant and equipment, $35,700; and insurance and property taxes, $18,450.
Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 9,080 hours. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter favorable variances as negative amounts.
Factory Overhead Cost Variance Report
Shaded cells have feedback.
Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,860 hours. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter favorable variances as negative amounts.
Score: 106/174
TIGER EQUIPMENT INC.
Factory Overhead Cost Budget - Welding Department
For the Month Ended May 31
1 Productive capacity for the month 8,700 hours
2 Actual production for the month 9,080 hours
3
4 Budget (at Actual Production) Actual Variances: Favorable Variances: Unfavorable
5 Variable factory overhead costs:
6 ✔ ✔
7 ✔ ✔
8 ✔ ✔
9 ✔ ✔
10 Fixed factory overhead costs:
11 ✔ ✔
12 ✔ ✔
13 ✔ ✔
14 ✔ ✔
15 ✔ ✔
16 ✔
17
18 ✔
19 ✔
20 ✔
Answer:
TIGER EQUIPMENT INC.
Factory Overhead Cost Budget—Welding Department
For the Month Ended May 31 Budgets
1 Variable costs: Static Flexible Actual Variance
2 Indirect factory wages $40,020 $41,768 $42,268 $500 U
3 Power and light 20,880 21,792 22,064 272 U
4 Indirect materials 17,400 18,160 18,700 540 U
5 Total variable cost $78,300 $81,720 $83,032 $1,312 U
6 Fixed costs:
7 Supervisory salaries $19,800 $19,800 $19,800 None
8 Depreciation of plant & equipment 35,700 35,700 35,700 None
9 Insurance and property taxes 18,450 18,450 18,450 None
10 Total fixed cost 73,950 $73,950 $73,950 None
11 Total factory overhead cost $152,25 $155,670 $156,982 $1,312 U
Explanation:
TIGER EQUIPMENT INC.
Factory Overhead Cost Budget—Welding Department
For the Month Ended May 31
1 Variable costs: Static Flexible Actual Variance
2 Indirect factory wages $40,020 $41,768 $42,268 $500 U
3 Power and light 20,880 21,792 22,064 272 U
4 Indirect materials 17,400 18,160 18,700 540 U
5 Total variable cost $78,300 $81,720 $83,032 $1,312 U
6 Fixed costs:
7 Supervisory salaries $19,800 $19,800 $19,800 None
8 Depreciation of plant & equipment 35,700 35,700 35,700 None
9 Insurance and property taxes 18,450 18,450 18,450 None
10 Total fixed cost 73,950 $73,950 $73,950 None
11 Total factory overhead cost $152,25 $155,670 $156,982 $1,312 U
Flexing the budget:
Indirect factory wages $40,020.00/8,700 * 9,080 = $41,768
Power and light 20,880.00/8,700 * 9,080 = $ 21,792
Indirect materials 17,400.00 /8,700 * 9,080 = $18,160
Total variable cost $78,300.00/8,700 * 9,080 = $81,720
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $750,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.4 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 5% interest rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary.
Answer:
$400,000
Explanation:
Given the following :
Beginning Cash balance = $100,000
Net income during the year = $5,000,000
Dividend to common shareholders = $750,000
Purchase of machinery = $5,400,000
Depreciation expense = $450,000
Long term debt = $1,000,000
Rate = 5%
STATEMENT OF CASH FLOW:
Cashflow from operating activities :
Net income ___________5,000,000
Add: Depreciation exp. ___450,000
Net cash: ____________________5,450,000
Cashflow from. Investing Activities :
Purchase of machinery __(5,400,000)
Net cash: ____________________(5,400,000)
Cashflow from financing activities:
Payment of Dividend __(750,000)
Long term debt ______1,000,000
Net cash from financing __________250,000
Net increase in cash: ____________300,000
Beginning cash balance __________100,000
Year end Cash balance __________ 400,000
What is the beta for a 2 stock portfolio with a 0.54 weight in Walmart stock and the remainder in Amazon
Answer: 0.73
Explanation:
Walmart Beta = 0.3616
Amazon's beta = 1.1634
The beta of the portfolio will be a weighted average of the portfolio beta;
= (Walmart beta * Walmart weight) + ( Amazon beta * Amazon weight)
= (0.3616 * 0.54) + ( 1.1634 * (1 - 0.54))
= 0.730428
= 0.73
Oklahoma Oil Corp. paid interest of $792,000 during 2021, and the interest payable account decreased by $129,500. What was interest expense for the year
Answer:
The interest expense for the year is $662,500.
Explanation:
The following are given in the question:
Interest paid during the year 2021 = $792,000
Amount of decrease in interest payable account = $129,500
The interest expense for the year can be calculated as follows:
Interest expense for the year = Interest paid during the year 2021 - Amount of decrease in interest payable account = $792,000 - $129,500 = $662,500
Therefore, the interest expense for the year is $662,500.
Revenues and gains included in arriving at net income that do not provide cash.
Answer:
Non-cash revenues.
Explanation:
Non-cash revenues can be defined as revenues and gains included in arriving at net income that do not provide cash.
Basically, on the statement of cash-flow, non-cash revenues are considered not to be a real cash-flow because they don't add to the total inflow of cash.
Some examples of noncash revenues are amortization of premium relating to bonds payable, cash flow from investments that are carried under the equity method, accrued revenues, and gains from disposals of non-current assets.
Last year, Vandalay Industries had $300,000 in taxable income from its operations before the following: $40,000 in interest expense, $10,000 in interest income, $30,000 in dividends paid and $20,000 in dividend income. Assuming that 50% of dividend income is taxable and a 25% tax rate, what was the company's tax liability for the year?
A. $70,000
B. $79,190
C. $90,890
D. $62,500
E. $84,560
Answer: A. $70,000
Explanation:
The tax liability will be computed on the total income that is taxable.
Total income = Taxable income - Interest expense + Interest income + taxable dividend income
= 300,000 - 40,000 + 10,000 + (50%* 20,000)
= 300,000 - 40,000 + 10,000 + 10,000
= $280,000
Tax liability = 25% * 280,000
= $70,000
The tax liability will be computed on the total taxable income.
Computed tax liabilityFormula of Total income is = Taxable income - Interest expense + Interest income + taxable dividend income.
Then = 300,000 - 40,000 + 10,000 + (50%* 20,000)
After that = [tex]300,000 - 40,000 + 10,000 + 10,000[/tex]
Now = $[tex]280,000[/tex]
Then the Tax liability is = 25% * 280,000 = $70,000
Thus, the correct option is "A" $70,000
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A company's board of directors declared a $0.80 per share cash dividend on its $2 par common stock. On the date of declaration, there were 42,000 shares authorized, 17,000 shares issued, and 6,000 shares held as treasury stock. What is the entry when the dividends are declared?
A. Dividends 5,500
Dividends Payable 5,500
B. Dividends Payable 5,500
Cash 5,500
C. Dividends 24,500
Dividends Payable 24,500
D. Dividends Payable 8,500
Cash 8,500
Answer:
Dividenda = $8,800, Dividends payable = $8,800
Explanation:
Dividends = [(Number of shares issued - Treasury stock held) * Dividend per share)
Dividends = (17,000 - 6,000) * 0.80
Dividends = 11,000 * $0.80
Dividends = $8,800
Date Account Titles and Explanation Debit Credit
Dividends $8,800
Dividends payable $8,800
(To record dividend declaration)
Decision on Transfer Pricing Materials used by the Instrument Division of XPort Industries are currently purchased from outside suppliers at a cost of $185 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $154 per unit. a. If a transfer price of $168 per unit is established and 33,200 units of materials are transferred, with no reduction in the Components Division's current sales, how much would XPort Industries’ total income from operations increase?
Answer:
$1,029,200
Explanation:
The computation of net income increases is shown below:-
Market purchase cost = 33,200 × $185
= $6,142,000
Component division variable cost = 33,200 × $154
= $5,112,800
Net income increases = $6,142,000 - $5,112,800
= $1,029,200
hence, the net income would be increased by $1,029,000 and the same is to be considered
Chris purchases a living room furniture set for $4,345 from Halloran Gallery. She has a one-year, no interest, no money down, deferred payment plan. She does have to make a $15 monthly payment for the first 11 months. b. How much must Chris pay in the last month of this plan
Answer: $4180
Explanation:
From the question, we are told that Chris purchases a living room furniture set for $4,345 and has a one-year, no interest, no money down, deferred payment plan. We are further told that She he made a $15 monthly payment for the first 11 months.
The total amount paid for the first 11 months will be:
= $15 × 11
= $165
Since he has to pay the total amount for 12 months, the amount that Chris will pay in the last month of this plan will be:
= $4345 - $165
= $4180
"The fund is earning a low, but safe, 3% per year. The withdrawals will take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $40,000 each year?"
Answer:
The question is missing the amount that Debbie's fund has, so I looked for similar questions and the number I found was $368,882.
we can use the present value of an annuity due formula to determine how long it will take Debbie to empty her account.
present value of annuity due = (payment / i) x {1 - [1 / (1 + i)ⁿ]} x (1 + i)
368,882 = (40,000 / 0.03) x {1 - [1 / (1 + 0.03)ⁿ]} x (1 + 0.03)
368,882 = 1,333,333.33 x 1.03 x {1 - [1 / (1 + 0.03)ⁿ]}
368,882 = 1,373,333.33 x {1 - [1 / (1 + 0.03)ⁿ]}
1 - [1 / (1.03)ⁿ] = 368,882 / 1,373,333.33 = 0.268603398
1 - 0.268603398 = [1 / (1.03)ⁿ]
0.731396601 = 1 / (1.03)ⁿ
1.03ⁿ = 1 / 0.731396601 = 1.367247261
n = log 1.367247261 / log 1.03 = 0.135847062 / 0.012837224 = 10.58 years
Debbie will exhaust the fund in 10.58 years. That means that Debbie will be able to withdraw $40,000 for 10 years, and then the last withdrawal will be lower.
Explanation:
At the end of the current year, Leer Company reported total liabilities of $319,000 and total equity of $119,000. The company's debt ratio on the last year-end was:___________.
a. 72.8%.
b. 268%.
c. 3-68%.
d. 37.3%.
e. $438,000
Answer:
72.8%
Explanation:
The first step is to calculate the total assets
Total assets= Total liabilities + total equity
= $319,000 + $119,000
= $438,000
Therefore the debt ratio can be calculated as follows
= Total liabilities/total assets
= $319,000/$438,000
= 0.728×100
= 72.8%
what is the function of product and service management
Mattress Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $ million and inventory was $ million. This year, costs of goods sold is $ million and inventory investment is $ million. a) What was its weeks of supply last year? nothing weeks (round your response to two decimal places). b) What is its weeks of supply this year? nothing weeks (round your response to two decimal places). c) Is Mattress Wholesalers making progress in its inventory reduction effort? Since the number of weeks that cover the supply has ▼ decreased not changed increased , Mattress Wholesalers is making ▼ negative progress no progress progress in its inventory-reduction effort.
Answer:
A. Weeks supply= 10.7
B. Weeks supply= 9.53
C. Yes
DECREASED, PROGRESS
Explanation:
A. Calculation for last year’s weeks of supply
First step is to find the Average cost of sold good on week basis
Using this formula
Average cost of sold good on week basis =Cost of goods sold /Numbers of weeks in a year
Let plug in the formula
Average cost of sold good on week basis= $7.54 million/ 52
Average cost of sold good on week basis= $ 0.145 million
Last step is to find last year Weeks supply using this formula
Last year Weeks supply=Investment in inventory/ Average cost of sold good on week basis
Let plug in the formula
Last year Weeks supply=$1.46/0.145
Last year Weeks supply= 10.7
B. Calculation for weeks supply this year?
Using this formula
Average cost of sold good on week basis =Cost of goods sold /Numbers of weeks in a year
Let plug in the formula
Average cost of sold good on week basis= $8.62 million/ 52
Average cost of sold good on week basis= $ 0.165769 million
Last step is to find this year Weeks supply using this formula
This year Weeks supply=Investment in inventory/ Average cost of sold good on week basis
Let plug in the formula
This year Weeks supply=$1.58/0.165769
This year Weeks supply= 9.53
C. Yes, Mattress Wholesalers is making progress in its inventory reduction effort .
Since the numbers of weeks that cover the supply had DECREASED, Wholesalers is making PROGRESS in its inventory reduction effort
had $35 million in sales last year. Its cost of goods sold was $25 million and its average inventory balance was $3 million. What was its average days of inventory
Answer: 43.8 days
Explanation:
Average days of school inventory can be calculated as:
= Average inventory balance/(Cost of goods sold/365)
= $3million/($25 million/365)
= $3 million/$68493.15
= 43.8 days
Dorchester Company had the following balances at the end of 2018 and 2019 respectively: Net Credit Sales - $875,000 for 2018 and $1,032,000 for 2019. Accounts Receivable - $84,000 for 2018 and $107,000 for 2019. Allowance for Doubtful Accounts - $4,000 for 2018 and 7,500 for 2019 Calculate the accounts receivable turnover ratio to one decimal place.
Answer:Accounts Receivable Turnover Ratio = 11.50 times
Explanation:
Accounts Receivable Turnover Ratio is calculated using
Net Credit Sales / Average Accounts Receivable
Net Credit Sales for 2019 = $1,032,000
Net Accounts Receivable in 2018 = Accounts Receivable in 2018 - Allowance for Doubtful Accounts in 2018
= $84,000 - $4,000
= $80,000
Net Accounts Receivable in 2019 = Accounts Receivable in 2019 - Allowance for Doubtful Accounts in 2019
= $107,000 - $7,500
= $99,500
Average Accounts Receivable = (Net Accounts Receivable in 2018 + Net Accounts Receivable in 2019) / 2
= ($80,000 + $99,500) / 2
= $179,500 / 2
= $89,750
Accounts Receivable Turnover Ratio = Net Credit Sales in 2019 / Average Accounts Receivable
= $1,032,000/ $89,750
= 11.498
= 11.50 times
Answer:
PoyPoy
Explanation:
Tim is the vice president of western operations for Maroon Oil Company and is stationed in San Francisco. He is required to live in an employer-owned home, which is three blocks from his company office. The company-provided home is equipped with high-speed Internet access and several telephone lines. Tim receives telephone calls and e-mails that require immediate attention any time of day or night because the company's business is spread all over the world. A full-time administrative assistant resides in the house to assist Tim with the urgent business matters. Tim often uses the home for entertaining customers, suppliers, and employees. The fair market value of comparable housing is $9,000 per month. Tim is also provided with free parking at his company's office. The value of the parking is $350 per month.
The amount associated with the free parking that Tim must include in his gross income per month is?
Answer:
$80 (in 2020)
Explanation:
I will assume that this question takes place during the current year (2020). An employee is required to include as income all transportation benefits that exceed $270 per month. In this case, free parking is considered a transportation benefit and Tim must report $350 - $270 = $80 as taxable benefits. The exclusion amount varies depending on the year, e.g. it was $265 in 2019.
The amount that should be included in the gross income per month should be $80.
Calculation of the amount:The employee should needed to involved the income in terms of transportation benefits that should be more than $270 per month. Since the free parking should be considered as the transportation benefit
So here the amount associated should be
= $350 - $270
= $80
hence, The amount that should be included in the gross income per month should be $80.
Learn more about amount here: https://brainly.com/question/24316713
Ivanhoe Construction Company had a contract starting April 2021, to construct a $23000000 building that is expected to be completed in September 2023, at an estimated cost of $21000000. At the end of 2021, the costs to date were $7560000 and the estimated total costs to complete had not changed. The progress billings during 2021 were $3800000 and the cash collected during 2021 was 3100000. Ivanhoe uses the percentage-of-completion method. At December 31, 2021 Ivanhoe would report Construction in Process in the amount of:
Answer:
$8280000
Explanation:
From the given information;
The percentage of the completion method used in construction is equal to the contract price multiplied by the percentage of estimated total cost incurred to date i.e.
Cumulative cost to date $7560000
Estimated total cost $21000000
Percentage of completion 36% ( $7560000/ $21000000 )
The contract price for this project is $23000000
Therefore,
At December 31, 2021 Ivanhole would report construction in process in the amount of: $23000000 × 36%
= $8280000