Perdue Company purchased equipment on April 1 for $86,670. The equipment was expected to have a useful life of three years, or 6,480 operating hours, and a residual value of $2,430. The equipment was used for 1,200 hours during Year 1, 2,300 hours in Year 2, 1,900 hours in Year 3, and 1,080 hours in Year 4.


Required:


Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by:


a. the straight-line method

b. units-of-output method.

c. the double-dedining-balance method.

Answers

Answer 1

Answer:

purchase cost $86,670

useful life 3 years, 6,480 operating hours

residual value $2,430

a. the straight-line method

depreciation expense per year = ($86,670 - $2,430) / 3 = $28,080

depreciation year 1 = $28,080 x 9/12 = $21,060depreciation year 2 = $28,080 depreciation year 3 = $28,080 depreciation year 4 = $28,080 x 3/12 = $7,020

b. units-of-output method.

depreciation per hour =  ($86,670 - $2,430) / 6,480 = $13

depreciation year 1 = 1,200 x $13 = $15,600depreciation year 2 = 2,300 x $13 = $29,900depreciation year 3 = 1,900 x $13 = $24,700depreciation year 4 = 1,080 x $13 = $14,040

c. the double-declining-balance method.

depreciation year 1 = 2 x 1/3 x $86,670 x 9/12 = $43,335depreciation year 2 = $14,445 + (2 x 1/3 x $28,890 x 9/12) = $28,090 depreciation year 3 = $4,815 + (2 x 1/3 x $9,630 x 9/12) = $9,630 depreciation year 4 = $1,605 + ($3,210 - $2,430) = $2,385

Related Questions

6. ABC Company announced today that it will begin paying annual dividends next year. The first dividend will be $0.10 a share. The following dividends will be $0.20, $0.30, $0.40, and $0.50 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 2.0 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 8.0 percent

Answers

Answer:

The amount willing to pay to buy one share is $6.92.

Explanation:

The announcement by company to pay annual dividend = $0.10

2nd year divident amount = $0.20

3rd year divident amount = $0.30

4th year divident amount = $0.40

5th-year divident amount = $0.50

The increase in dividend = 2 percent.

The desired rate of return = 8%

Value after year 5 = (D5 × Growth rate) / (Required rate-Growth rate)

=(0.5 × 1.02) / (0.08-0.02)

=8.5

Therefore, the current value = Future dividend and value × Present value of discounting factor(rate%,time period)

=0.1/1.08 + 0.2/1.08^2 + 0.3/1.08^3 + 0.4/1.08^4 + 0.5/1.08^5 + 8.5/1.08^5

=$6.92.

The stockholders' equity of TVX Company at the beginning of the day on February 5 follows.


Common stock—$10 par value, 150,000 shares
authorized, 62, 000 shares issued and outstanding $620,000
Paid—in capital in excess of par value, common stock 423,000
Retained earnings 552,000
Total stockholders ' equity 1595,000

On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $31 per share on February 5 before the stock dividend.

Required:
Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)

Answers

Answer:

TVX Company

Stockholders Equity Section of the Balance Sheet, February 28

Common stock $632,400

Paid in capital in excess of par value, Common stock $449,040

Retained earnings  $513,560

Total Stockholders Equity $1,595,000

Workings

Common Stock

= Common Stock + Dividends Declared

= 620,000 + ( 2% * 62,000 shares * $10 par value)

= 620,000 + 12,400

= $632,400

Paid in capital in excess of par value, Common stock

Dividends were declared based on current market value of $31 not par value of $10 so the differnce will be catered for here.

= Balance + Dividends Declared

= 423,000 + (2% * 62,000 * $21 which is differnce between par value and market value)

= 423,000 + 26,040

= $449,040

Retained earnings

= Retained Earnings - Dividends distributed

= 552,000 - (2% * 62,000 * $31)

= 552,000 - $38,440

= $513,560

"Our goal is to make add-on sales during 85% of sales. If you make35 sales. How many add-0n sales do you need to make to meet the goal

Answers

Answer:

30

Explanation:

Add-On Sales Goal =85% of Sales

If there were a total of 35 sales, in order to meet the goal, we would require to make an add-on sales during 85% of 35 sales.

Now:

85% of 35=0.85 X 35

=29.75

This is approximately 30.

Therefore, you would need to make 30 add-on sales to meet the goal.

Bastille Corporation prepares monthly cash budgets.

Here are relevant operating budgets for 2017:

January February
Sales $360,000 $400,000
Purchases 120,000 130,000
Salaries 84,000 81,000
Administration expenses 72,000 75,000
Selling expenses 79,000 88,000
All sales and purchases are on account.

Budgeted collections and disbursement data are given below.

All other expenses are paid in the month incurred.

Administrative expenses include $1,000 of depreciation per month.

Other data:
1. Collections from customers: January $326,000; February $378,000.
2. Payments for purchases: January $110,000; February $135,000.
3. Other receipts: January - collection of December 31, 2016 notes receivable $15,000; February - proceeds from sale of securities $4,000.
4. Other disbursements: February $10,000 cash dividend.
The company's cash balance on January 1, 2017 is expected to be $46,000. The company wants to maintain a minimum cash balance of $40,000.

Required:

Prepare a cash budget for January and February.

Answers

Answer and Explanation:

The Preparation of the cash budget for January and February is prepared below:-

                                          Bastille Corporation  

                                               Cash budget

                              for the month of January and February  

Particulars                                 January             February  

Beginning cash balance         $46,000              $43,000

Add: Receipts                      

Customer collection                 $326,000           $378,000

Notes receivable collection     $15,000              $0

Sale of marketable securities    0                        $4,000

Total receipts                            $341,000             $382,000

Total cash available                  $387,000           $425,000

Less:  

Cash payments during the

year

Purchases                                   $110,000           $135,000

Salaries                                       $84,000            $81,000

Administrative expenses           $71,000             $74,000

Selling expenses                         $79,000            $88,000

Dividends                                     0                        $10,000

Disbursement total                     $344,000          $388,000

Excess of cash  

available                                      $43,000             $37,000

Financing

Borrowings                                   0                        $3,000

Repayments                                  0

Ending cash balance                   $43,000            $40,000

Note: February beginning balance is the balance of ending cash balance.

On January 2, Year 1, Jones Corporation purchased a truck for $39,000. The truck has a 5-year estimated life and a $4,000 estimated salvage value. Jones expects to drive the truck 100,000 miles during its useful life. Prepare the depreciation schedule for Year 1 through Year 5 using each of the following depreciation methods; Straight-line method, 200 declining balance method, and Sum-of-years-digits method. You have to construct the depreciation schedules to answer this question. Make sure that all of your calculations should be done on the excel formula bar to show how you obtained your answers.

Answers

Answer:

Straight-line method:

depreciation expense year 1 = ($39,000 - $4,000) / 5 = $7,000depreciation expense year 2 = $7,000depreciation expense year 3 = $7,000depreciation expense year 4 = $7,000depreciation expense year 5 = $7,000

200 declining balance method:

depreciation expense year 1 = 2 x 1/5 x $39,000 = $15,600depreciation expense year 2 = 2 x 1/5 x $23,400 = $9,360depreciation expense year 3 = 2 x 1/5 x $14,040 = $5,616depreciation expense year 4 = 2 x 1/5 x $8,424 = $3,369.60depreciation expense year 5 = $5,054.40 - $4,000 = $1,054.40

Sum-of-years-digits method:

depreciation expense year 1 = 5/15 x $35,000 = $11,666.67depreciation expense year 2 = 4/15 x $35,000 = $9,333.33depreciation expense year 3 = 3/15 x $35,000 = $7,000depreciation expense year 4 = 2/15 x $35,000 = $4,666.67depreciation expense year 5 = 1/15 x $35,000 = $2,333.33

Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.
A. True
B. False

Answers

Answer:

False

Explanation:

Answer:

False

Explanation:

financing activities are business transactions that are used to fund either company operations or the business expansion expansions.

Some examples of financial activities includes:

1. Borrowing and paying back short-term loans.

2. Borrowing and paying back long-term loans.

receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks are not financing activities.

A firm wishes to maintain an internal growth rate of 9 percent and a dividend payout ratio of 66 percent. The ratio of total assets to sales is constant at 1, and the profit margin is 8.1 percent. If the firm also wishes to maintain a constant debt-equity ratio, what must it be

Answers

Answer:

the constant debt-equity ratio is 2.580

Explanation:

Given:

dividend payout ratio of 66 percent= 0.66

Sustainable Growth rate of 9 percent = 0.09

profit margin is 8.1 percent= 0.081

total assets to sales is constant at 1

We need to calculate the Retention Ratio first,

which gives the percentage of a company's earnings that are not paid out in dividends but credited to retained earnings. It can be calculated using below expression,

Retention Ratio = 1 - Dividend pay-out ratio

Retention Ratio = 1 - 0.66 = 0.34

ROE i.e the return on equity which is a measure of the profitability of a business in relation to the equity can be calculated as;

Sustainable Growth rate = (ROE * Retention Ratio)/(1 - ROE*Retention Ratio)

0.09 = (ROE * 0.34/(1 - ROE*0.34)

0.09 (1 - 0.34ROE) = 0.34ROE

0.09 - 0.0306ROE = 0.34ROE

0.3094ROE = 0.09

ROE = 0.09/0.3094

ROE = 0.290 or 2.90%

debt-equity ratio can now be calculated as;

Return on Equity = Profit Margin×Total Assets to sales ratio×(1+D/E)

0.290 = 0.081*1*(1+D/E)

1 + D/E = 0.290/0.081

1 + D/E = 3.580

D/E = 3.580 - 1 = 2.580

Therefore, the constant debt-equity ratio is 2.580

Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions. External Transaction Accounts Debit Credit 1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500 2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100 3. Purchase office supplies on account, $110. Supplies 110 Cash 110 4. Pay $410 for next month's rent. Rent Expense 410 Cash 410 5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250
Assess wether the junior accountant correctly proposes how to record each transaction.If incorrect provide the correction.

Answers

Answer:

Scarlet Knight Corporation

Posting of transactions:

1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500

Wrong. Correct Posting: Cash 5,500 Common Stock 5,500

2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100

Correct.

3. Purchase office supplies on account, $110. Supplies 110 Cash 110

Wrong. Correct Posting : Supplies 110 Accounts Payable 110

4. Pay $410 for next month's rent. Rent Expense 410 Cash 410

Wrong. Correct Posting: Rent Prepaid 410 Cash 410

5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250

Wrong. Correct Posting: Equipment 1,250 Cash 1,250

Explanation:

1. Owners invest $5,500 in the company and receive common stock.  Cash is increased and Common Stock increased by $5,500.

2. 2. Receive cash of $2,100 for services provided in the current period.

Cash is increased and Service Revenue increased by the same amount.

3. Purchase office supplies on account, $110.

No cash payment is involved with this transaction since it was on account.  The accounts involved and which increased by $110 are Supplies and Accounts Payable.

4. Pay $410 for next month's rent. The amount is for next month.   As such no Rent Expense account is involved.  Instead, the accounts involved are Rent Prepaid and cash.  While Rent Prepaid increases, Cash is reduced.

5. Purchase office equipment with cash of $1,250. Equipment received value and will increase by $1,250 while Cash gave value and will reduced by $1,250 and not vice versa.

suppose that the manager of a firm operating in a perfectly competitive market average variable cost reaches its minimum value at

Answers

Complete Question:

Suppose that the manager of a firm operating in a perfectly competitive market has estimated the average variable cost function to be:

AVC = 4.0 - 0.0024Q + 0.000006Q^2             Fixed costs are $500.

Requirement:

Average variable cost reaches its minimum value at___ units of output, and the minimum value of average variable cost is $___

Answer:

Average variable cost reaches its minimum value at 200 units of output, and the minimum value of average variable cost is $3.76.

Explanation:

To find the Average Variable Cost we will have to calculate quantity and for that sake we will first of all find the point of intersection of AVC and MC to find the Quantity "Q".

So

AVC  * Quantity = Total Variable Cost  + Total Fixed Cost

Here

AVC = 4.0 - 0.0024Q + 0.000006Q^2

Fixed costs are $500

Total Variable Cost is TVC

Quantity is Q here

By putting values, we have:

(4.0 - 0.0024Q + 0.000006Q^2) * Q = TVC + 500

4Q - .0024Q^2 + .000006Q^3 = TVC + 500

By rearranging the above formula, we have:

TVC = 4Q - .0024Q^2 + .000006Q^3 - 500

By applying derivation rules, we have:

dTC/dQ = 4 - 0.0048Q + 0.000018Q^2

Now this equation is Marginal cost equation.

At the point of intersection of AVC and MC, both equations will equal to each other and thus we can find Q.

Mathematically,

4 - 0.0024Q + 0.000006Q^2 = 4 - .0048Q + .000018Q2

Cancelling 4 on both sides, and netting off the equation, we have:

0.0024Q = .000012Q2

1 = .000012Q2 / 0.0024Q

1 = 0.005Q

Q = 1/ 0.005 = 200 Units

By putting value of Q in AVC equation given above, we have:

AVC = 4 - 0.0024*200 + 0.000006*(200)^2

AVC = 4 - 0.48 + 0.24 = $3.76

On January 1 , a company borrowed $70000 cash by signing a 9% installment note that is to be repaid with 4 annual-end payment of $21607. While the amount borrowed equals $70000 , the total payment on this note amount to $86428. Explain

Answers

Answer:

86,428 - 70,000 = $16,428

This difference of $16,428 refers to the 9% interest that was paid over the 4 years. However, the 9% is only charged on the amount that is owed whch reduces every year by a principal repayment which also comes out of the $21,607.

Year 1

Payment = $21,607

Interest = 9% * 70,000 = $6,300.

Principal repayment = 21,607 - 6,300= $15,307

Amount left to be paid = 70,000 - 15,307 =  $54,693

Year 2

Payment = $21,607

Interest = 9% * 54,693 = $4,922.37

Amount left to be paid = 54,693 - (21,607 - 4,922.37) = $38,008.37

Year 3

Payment = $21,607

Interest = 9% * 38,008.37 = $3,420.75

Amount left to be paid = 38,008.37 - (21,607 - 3,420.75) = $19,822.12

Year 4

Payment = $21,607

Interest = 9% * 19,822.12 = $1,783.99

Amount left to be paid = 19,822.12 - (21,607 - 1,783.99) = $0

Interest Year 1 - 4 = 6,300 + 4,922.37 + 3,420.75 + 1,783.99

= $16,427.11 (difference due to rounding errors)

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts.
Cash $ 11,360 Cash dividends $ 2,000
Accounts receivable 14,000 Consulting revenue 14,000
Office supplies 3,250 Rent expense 3,550
Land 46,000 Salaries expense 7,000
Office equipment 18,000 Telephone expense 760
Accounts payable 8,500 Miscellaneous expenses 580
Common Stock 84,000
Preparing a statement of cash flows LO P2 Also assume the following:
The owner’s initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock. The company’s $18,000 equipment purchase is paid in cash. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 in employee salaries yet to be paid. The company’s rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $14,000 consulting fees earned. Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)

Answers

Answer:

Required:

Prepare an October 31 statement of cash flows for Ernst Consulting.

________________________________

             ERNST CONSULTING

             Income Statement

       For month ended October 31

Revenues:

    Consulting fees   $14,000

Total revenue:                            $14,000

Expenses:

Salary expense:                7,000

Rent expense:                   3,550

Telephone expense:         760

Miscellaneous expenses:   580

Total expenses:                                 11,890

Net income:                                       2,110 (14,000 - 11890)

_____________________________

_______________________________________

            ERNST CONSULTING

         Statement of Retained Earnings

               As of October 31

Retained earnings Oct, 1:                     $0

Add: Net income                                   $2,110

                                                              $2,110

Less: Dividends                                    - $2,000

Retained earnings October 31:               $110(2,110 - 2,000)

________________________________

You need to make 9
servings of roast beef gravy.
Each serving takes 1 quart
of brown stock.
How many quarts of brown
stock do you have to make?
Answer:​

Answers

Answer:

9/4 = 2 1/4 = 2.25

Explanation:

1 serving = 1/4 brown stock

9 servings = x brown stock

Do cross mutliplication and divide:

(9 x 1/4) ÷1

9/4 = 2 1/4 = 2.25

can anyone plzzzz help me 5 concepts of marketing and its explanation.. i ll give 5 stars nd i ll mark them as brainlist..

Answers

Answer:

1.  production concept,  2. product concept,  3.  selling concept,  4.  marketing concept, and  5.  societal marketing concept.  

Explanation:

So marketing is a department of management that tries to design strategies that will help build profitable relationships with other consumers.

Explanation:

5 Essential Marketing Concepts You Should Know

HELLO where are you from and how old are you me 21 from Phillippines

The Production Concept.

The Product Concept.

The Selling Concept.

The Marketing Concept.

The Societal Marketing Concept.

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable$363,000debit Allowance for uncollectible accounts 580debit Net Sales 808,000credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared

Answers

Answer:

$4,848 will be the amount that should be debited to Bad debts expense when the adjusting entry is being prepared for the year end.

Explanation:

Since the company uses percentage of sales method for calculating bad debt, it therefore means that the bad debt expense for the year will not be charged from the opening balance of allowance for uncollectible accounts but will be charged as Net credit sales × percentage of uncollectible from credit sales.

Therefore, bad debt for the period is charged as Net credit sales × Percentage of uncollectible from credit sales

= $808,000 × 0.6%

= $4,848

Therefore, the adjusting entry for bad debt expenses at year end is;

Bad debt expense Dr $4,848

Allowance for uncollectible accounts Cr $4,848

Suppose that is placed in a savings account at an annual rate of , compounded semiannually. Assuming that no withdrawals are made, how long will it take for the account to grow to

Answers

Answer:

6 months

Explanation:

Savings accounts earn compound interest, where the interest is calculated based on the principal and all accumulated interest. Usually, savings accounts average percentage yield is 1% and is compounded onto the principal amount every cycle. These cycles can be annually or semiannually. Therefore since this account is compounded semiannually, the account total will grow by 1% every 6 months.

In a tiny village, on the coast of South America, early inhabitants used sea shells, as money. Some of these shells were very beautiful and fragile. Everyone agreed that the shells were valuable and the people utilized them in much the same way we use money today. The fragility of the shells and the fact that a shell is difficult to split into smaller denominations would make these sea shells unfit to act as money today because sea shells could not act as a ________.

Answers

Answer:

store of value

Explanation:

Based on this information it can be said that seashells would be unfit to act as money because they could not act as a store of value. Money needs to be easily divisible and storable in order for it to be used as a medium of exchange. This also allows money to easily measure the value of a certain good or service. Therefore, since seashells cannot be stored since they are very fragile and cannot be divided then they would not be fit as money.

Using the post-closing trial balance, calculate the total assets, liabilities, and equity, and enter those amounts in the basic accounting equation.
SMART TOUCH LEARNING
Post-Closing Trial Balance December 31, 2016
Balance
Account Title Debit Credit
Cash 32900
Accounts Receivable 6300
Office Supplies 400
Prepaid Insurance 10900
Prepaid Rent 10,900
Furniture 38,700
Accumulated Depreciation-- 13100
Furniture Accounts Payable 17500
Salaries Payable 2600
Utilities Payable 1300
Interest Payable 1700
Unearned Revenue 33200
Common Stock 8400
Retained Earnings 22300
Total 1001,00 100100

Answers

Answer:

Assets= Liabilities + Owner's Equity

87,000= 56,300 + 30,700

87,000= 87000

Explanation:

SMART TOUCH LEARNING

Balance Sheet

Cash 32900

Accounts Receivable 6300

Office Supplies 400

Prepaid Insurance 10900

Prepaid Rent 10,900

Furniture 38,700

Accumulated Depreciation-- 13100

Total Assets $ 87,000

Furniture Accounts Payable 17500

Salaries Payable 2600

Utilities Payable 1300

Interest Payable 1700

Unearned Revenue 33200

Total Liabilities $ 56,300

Common Stock 8400

Retained Earnings 22300

Owner's Equity / Retained Earnings $30,700

Total Liabilities and Owner's Equity $ 87,000

The accounting equation is

Assets= Liabilities + Owner's Equity

87,000= 56,300 + 30,700

87,000= 87000

32900+ 6300+400 + 10900+ 10900+25600 = 17500 +  2600 + 1300 + 1700 + 33200 + 8400 22300

The total of Assets of a company are always equal to the total Liabilities and Owner's Equity.

Adding the assets we get $ 87,000 which is the same as the total of Liabilities and Owner's Equity.

Abburi Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $58,500 and if direct materials are $29,200, the manufacturing overhead is:

Answers

Answer:

 $71,500

Explanation:

The computation of manufacturing overhead is shown below:-

We assume conversion cost = x

Conversion cost = Labor cost + manufacturing overhead

x = $58,500 + 0.55x

x = $58,500 ÷ 0.45

= $130,000

Now the manufacturing overhead is

= Conversion cost × maufacturing overhead percentage

= $130,000 × 55%

= $71,500

We simply applied the above formula

PLEASE HELP ASAP!
Which example is an investment commodity? (Select the best answer.)


steel


shares in a company


microfinancing


a rare painting
Which option allows you to pool your money and invest in a portfolio with other investors? (Select the best answer.)


a 529 plan


an IRA account


a mutual fund


a 401(k) plan
Which piece of information is typically included in a stock listing? (Select the best answer.)


the predicted price of the stock over the next year


the company's SEC registration credentials


the number of shares of stock sold in a previous day


the number of shares of stock sold in the previous year
Which type of investment income happens when an investor sells ownership in an equity investment that's gained value? (Select the best answer.)


capital gains


dividends


interest


equity gains

Answers

Answer:

1. Steel

2. A Mutual Fund

3. The number of shares of stock sold in a previous day

4. Capital Gains

Explanation:

1. Investment commodities are investments in raw materials or primary goods that are still to be processed such as Agricultural produce and precious metals. Steel falls under this category.

2. A Mutual Fund works by pooling the resources and monies of various people and then investing it in various companies as a single portfolio. This way even though your funds might be little, you can still be able to diversify investments and make a good return.

3. When stock is listed for sale on a particular day, its trading figures for the previous day are listed as well.

4. Capital gain is a way to gain a return when the value of your investment has increased. When you sell that asset at the new price which is higher than the price you bought it, you make a capital gain on the transaction. For instance, R. Taylor bought stock for $100 in 2005 and it is now selling at $900 and Taylor sells it, Taylor now has a capital gain of $800.

Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $320,000 $300,000 Income before income tax expense 3,200,000 3,600,000
Determine the number of times interest charges are earned current year and the prior year.

Answers

Answer:

Current year=11 times

Prior year=13 times

Explanation:

Calculation for Determining the number of times interest charges are earned current year and the prior year

Using this formula

Times interest earned ratio= Income before Tax expense + Interest expense/Interest expense

Calculation for CURRENT YEAR

Current year =($3,200,000+$320,000)/$320,000

Current year =$3,520,000/$320,000

Current year=11 times

Calculation for PRIOR YEAR

Prior year=($3,600,000+$300,000)/$300,000

Prior year=$3,900,000/$300,000

Prior year=13 times

Therefore the number of times interest charges that are earned in current year will be 11 times and prior year will be 13 times .

ervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% factoring fee. What entry should Jervis make to record the transaction?

Answers

Answer:

Debit Cash account      $71,250

Debit Factoring charge   $3,750

Credit Accounts receivable  $75,000

Explanation:

Factoring accounts receivable involves the sale of the account receivable to another party such that the debt is now payable to that party. This is usually done to ease liquidity and at a charge.

When receivables are factored,

Debit Cash account

Debit Factoring charge

Credit Accounts receivable

Charge on factoring =  5/100 × $75,000

= $3,750

Amount to be received = $75,000 - $3,750

= $71,250

When Teresa talks about communicating with her employees, she says, "Now I write the emails and I save them. And then in the morning I shoot them all out." Teresa’s emails are an example of

Answers

The question is incomplete. The complete question is:

When Teresa talks about communicating with her employees, she says, “Now I write the e-mails and I save them. And then in the morning, I shoot them all out.” Teresa’s e-mails are an example of downward communication. This form of communication might not be effective with:

A. Gen-X employees

B. Baby Boomer employees

C. Gen-Y employees

Answer:

C. Gen-Y employees

Explanation:

Generation Y refers to the generation of people that were born between the early 1980s and the early 2000 and Gen-X refers to the people born from 1965 to 1980.

The downward communication might not be effective with Gen-Y employees because Gen-Y has is a technological youth and founds themselves more independent, so when Teresa addresses 'I', Gen-Y can get offended and it may question their ability.

Hence, the correct answer is C. Gen-Y employees.

Last year Baron Enterprises had $350 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity last year. In millions, by how much could Baron's sales increase before it is required to increase its fixed assets? a. $170.09 b. $179.04 c. $197.88 d. $188.46 e. $207.78

Answers

Answer:

Increase in sales= 188.46 million

Explanation:

Giving the following information:

Sales= 350 million

Fixed assests= 270 million

Used capacity= 65%

We need to determine the increase in sales that would occupy the entire capacity.

If 350 is 65% then:

Full capacity= (100*350)/65= 538.46 million

Now, the increase in sales:

Increase in sales= 538.46 - 350= 188.46 million

Art purchased 2,500 shares of Delta stock. His purchase represents 10 percent ownership in the firm. His shares have increased in value from the $12 a share he originally paid to today's market value of $13 a share. Assume Delta goes bankrupt and owes $450,000 more in debts than the firm can pay after liquidating all of its assets. What is the maximum loss per share Art will incur on this investment

Answers

Answer: $12

Explanation:

From the question, we are informed that Art purchased 2,500 shares of Delta stock and his purchase represents 10 percent ownership in the firm. We are further told that his shares have increased in value from the $12 a share he originally paid to today's market value of $13 a share.

Assume Delta goes bankrupt and owes $450,000 more in debts than the firm can pay after liquidating all of its assets, the maximum loss per share Art will incur on this investment will be the purchase price per share which was given in the question as $12.

This is because when a firm guess bankrupt, the maximum loss which will be incurred by Art will be the value of his investment which is $12.

Jake is the maker of a $2,000 promissory note payable to Kim. Kim indorses the note toLou who, in turn, indorses it to Mona, who then indorses it to Nat, the present holder
Refer to Fact Pattern 14-2. Nat properly presents the note to Jake for payment, but Jake dishonors it. With timely notice to the proper parties, Nat may collect payment on the note from
a. Kim, Lou, or Mona.
b. Kim or Lou only.
c. Mona only.
d. no one

Answers

Answer:

it's Jake, Kim, or Lyron or basically the first one but yours appears to be different

Deborah currently earns a____________ wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.40 per gallon; in this case, Deborah's_______________ wage, in terms of the amount of milk she can buy with her paycheck, is______________ gallons of milk per hour.

Answers

Answer:

Deborah currently earns a_____hourly_______ wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.40 per gallon; in this case, Deborah's______hourly_________ wage, in terms of the amount of milk she can buy with her paycheck, is______5________ gallons of milk per hour.

Explanation:

The wage is calculated on hourly basis per day, so Deborah currently earns a hourly wage. Unlike a salary, wage is paid per day, or per week.

If milk costs $2.40 per gallon, and

Deborah earns $12.00 per hour, then...

Deborah's hourly wage in terms of the amount of milk she can buy is

==> $12.00 ÷ $2.40 = 5 gallons of milk per hour.

An investor has a long-term investment time horizon, no liquidity needs and is very risk averse. Your main concern when making a recommendation to this client is:

Answers

Answer:

Safety of principal

Explanation:

PRINCIPAL

SAFETY OF PRINCIPAL is the probability or likelihood that the main money invested or the money which was paid for a specific investment will be returned to the investor.

Secondly SAFETY OF PRINCIPAL help to give the assurance that a person's or an individual principal or their initial investment will tend to remain the same over the life of the investment or period of the investment which is why Safety of principal can be achieved by carefully carryingout the review of both the economic and industrial trends before deciding to choose what type of investment to go for.

Therefore if an investor has a long-term investment time horizon in which their is no liquidity needs and is very risk averse.

My main concern when making a recommendation to this client is: SAFETY OF PRINCIPAL.

Use the following information to calculate cash received from dividends: Dividends revenue $ 32,300 Dividends receivable, January 1 3,100 Dividends receivable, December 31 4,400 Multiple Choice $27,900. $31,000. $35,400. $32,300. $33,600.

Answers

Answer:

$31,000

Explanation:

Calculation for the cash received from Dividend

Beginning dividends receivable + Dividend revenue - dividends paid = Ending dividends receivable

Hence,

Using this formula

Dividends paid = Beginging dividends receivable + dividend revenue - Ending dividends receivable

Let plug in the formula

= 3,100+32,300-4,400

=31,000

Therefore the amount of cash received from dividend will be $31,000.

Thus the dividend revenue is not the dividends which was received in cash, but instead it is the dividends which was earned during the period.

Xminus−Industries manufactures 3minus−D printers. For each​ unit, $ 3 comma 000$3,000 of direct material is used and there is $ 2 comma 000$2,000 of direct manufacturing labor at $ 20$20 per hour. Manufacturing overhead is applied at $ 25$25 per direct manufacturing labor hour. Calculate the profit earned on 5050 units if each unit sells for $ 9 comma 000$9,000.

Answers

Answer:

$75,000

Explanation:

The computation of profit earned is shown below:-

Sales revenue = $ 9,000 × 50 = $450,000

Direct material = $3,000 × 50 = $ 150,000

Direct labor = $2,000 × 50 = $100,000

Now

Number of direct labor hour per unit is

= $2,000 ÷ $20

=  $100

Manufacturing overhead per unit is

= $25 × $100

= $2,500

So,

Manufacturing overhead for 50 units is

= $2,500 × 50

= $125,000

And, finally

Profit = Sales revenue - Direct material - Direct labor - Manufacturing overhead

= $450,000 - $100,000 -$150,000 - $125,000

= $75,000

preferred stockholders must receive their stated dividends prior to the distribution of any earnings to common stockholders and bondholders true false

Answers

Answer: False

Explanation:

While it's is true that Preferred Shareholders should receive their stated dividends before Common Shareholders do, the same cannot be said for Bondholders.

Bonds are a type of debt and as such get preferential treatment to a company's income. Bond interest is paid before any dividend to any class of shareholders. Even in the event of a Liquidation, Bond holders are paid first before Preferred Shareholders.

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