Answer:
E. If Projects S and L have the same NPV at the current WACC, 10%, then Project L, the one with the lower IRR, would have a higher NPV if the WACC used to evaluate the projects declined.
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
QS 9-13 Note receivable interest and maturity LO P4 On December 1, Daw Co. accepts a $12,000, 45-day, 7% note from a customer. (1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. (2) Prepare the entry required on the note's maturity date assuming it is honored. (Use 360 days a year.)
Answer and Explanation:
The journal entries are shown below;
a. Interest receivable Dr ($12,000 × 7% × 30 days ÷ 360 days) $70
To Interest revenue $70
(Being the interest revenue is recorded)
For recording this we debited the interest receivable as it increased the asset and credited the interest revenue as it also increased the revenue
b. Cash Dr $12,105
To interest receivable $70
To interest revenue ($12,000 × 7% × 15 days ÷ 360 days) $35
To Note receivable $12,000
(being cash received is recorded)
For recording this we debited the cash as it increased the assets and credited the interest receivable, interest revenue and note receivable as it decreased the asset and increased the revenue
Use the information below for Harding Company to answer the question that follow. Harding Company Accounts payable $ 40,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 30,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 110,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 30,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000 Based on the data for Harding Company, what is the amount of quick assets
Answer:
$131,000
Explanation:
The computation of the amount of quick assets is shown below:
Quick asset = Account Receivable + Cash + marketable securities
= $65,000 + $30,000 + $36,000
= $131,000
We simply added the account receivable, cash and the marketable securities so that the quick assets could come plus it contains more liquidity that converted into cash in a very short period of time and the rest of the items are ignored as there are not relevant
LeBron James (LBJ) Corporation agrees on January 1, 2020, to lease equipment from Wildhorse, Inc. for 3 years. The lease calls for annual lease payments of $21,000 at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment. This lease is properly classified as an operating lease. The credit to Lease Liability on December 31, 2020 is ________.
Answer:
interest expense 4,881.08 debit
lease liability 4,881.08 credit
Explanation:
We solve for the present value of the lease payment and with that we solve forthe interest accrued during the period which will be interest expense debit and lease liability credit.
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 21,300
time 3
rate 0.06
[tex]21300 \times \frac{1-(1+0.06)^{-3} }{0.06} = PV\\[/tex]
PV $60,351.2638
lease: +60,351.26
less: 21,000.00 payment
81,351.26 before interest
interest over the year 81,351.26 x 0.06 = 4,881.08
Missing Information: 6% implicit rate
Exercise 14-09 (Part Level Submission) On June 30, 2020, Monty Company issued $4,360,000 face value of 13%, 20-year bonds at $4,688,000, a yield of 12%. Monty uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Collapse question part (a) Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2020. (2) The payment of interest and the amortization of the premium on December 31, 2020. (3) The payment of interest and the amortization of the premium on June 30, 2021. (4) The payment of interest and the amortization of the premium on December 31, 2021. No. Date Account Titles and Explanation Debit Credit (1) June 30, 2020 (2) December 31, 2020 (3) June 30, 2021 (4) December 31, 2021 Click if you would like to Show Work for this question: Open Show Work
Answer:
1. June 30,2020
Dr Cash $4,688,000
Cr Bonds payable $4,360,000
Cr Premium on Bonds payable 328,000
2. December 31,2020
Dr Interest expense 281,280
Dr Premium on Bonds payable 2,120
Cr Cash 283,400
3. June 30,2021
Dr Interest expense 281,153
Dr Premium on Bonds payable 2,247
Cr Cash 283,400
4. December 31,2021
Dr Interest expense 281,018
Dr Premium on Bonds payable 2,382
Cr Cash 283,400
Explanation:
Preparation of the Journal entries for Monty Company.
1. June 30,2020
Dr Cash $4,688,000
Cr Bonds payable $4,360,000
Cr Premium on Bonds payable 328,000
($4,688,000-$4,360,000)
2. December 31,2020
Dr Interest expense 281,280
(4,688,000*12%/2)
Dr Premium on Bonds payable 2,120
(283,400-281,280)
Cr Cash 283,400
(4,360,000*13%/2)
3. June 30,2021
Dr Interest expense 281,153
(4,688,000-2,120)*12%/2
Dr Premium on Bonds payable 2,247
(283,400-281,153)
Cr Cash 283,400
(4,360,000*13%/2)
4. December 31,2021
Dr Interest expense 281,018
(4,688,000-2,120-2,247)*12%/2
Dr Premium on Bonds payable 2,382
(283,400-281,018)
Cr Cash 283,400
(4,360,000×13%/2)
g A particular brand of toothpaste costs 4 British pounds in London. The nominal exchange rate is .80 and the real exchange rate is about 1.16. These numbers imply that the U.S. price of the same toothpaste is about a. $5.79 b. $4.29 c. $3.70 d. $2.76
Answer:
The answer is option (d)$2.76
Explanation:
Solution
Given that:
The cost of a particular brand of toothpaste = 4 pounds
The exchange rate = .80
Real exchange rate = 1.16
Now
Real exchange rate is given as:
R = real exchange rate
e = nominal exchange rate
PF = foreign price
P = domestic price
Suppose we say that U.S. is a domestic country and British is a foreign country we have the following formula below:
R = e(PF/P)
R = 1.16
e = 0.80
PF = 4
Thus
R = e(PF/P)
1.16 = 0.80(4/P)
P = 3.2/1.16
= 2.7586207
= $2.76
Therefore, The U.S rice of the same toothpaste is about $2.76
Suppose that you are the manager and sole owner of a highly leveraged company. All the debt will mature in one year. If at that time the value of the company is greater than the face value of the debt, you will pay off the debt. If the value of the company is less than the face value of the debt, you will declare bankruptcy and the debt holders will own the company.
a) Express your position as an option on the value of the company.
b) Express the position of the debt holders in terms of options on the value of the company.
c) What can you do to increase the value of your position?
Answer:
From my position as an option on the value of the company, the stance or view of the owner is a call option on value of company strike face of debt
Secondly, debt holders have systematically sold a put option value of company strike at face of debt.
Now, to be able to increase or raise the value call option it includes he following, In making sure to raise the value of the company, To boost the unpredictability of the company.
Explanation:
Solution
(a) The position of the owner is a call option on value of company strike at face of debt
(b)The debt holders have efficiently sold a put option on value of company strike at face of debt.
(c) To be able to increase the value option call the following are listed below:
Endeavor or make sure to raise the value of the companyBoost the volatility of the company.Hemming uses a periodic inventory system. Assume that ending inventory is consists of 45 units from the March 14 purchase, 75 units from the July 30 purchase, and all 100 units from the October 26 purchase. Using the specific identification method, calculate the (a) the cost of goods sold and (b) the gross profit.
Question:
Use the following information for the Exercises below.
Hemming CO. reported the following current year purchases and sales for its only product.
Date Activities Units Acquired at Cost Units Sold at Retail
Jan. 1 Beginning inventory 200 units at $10 = $2,000
Jan. 10 Sales 150 units at $40
Mar. 14 Purchase 350 units at $15= 5,250
Mar. 15 Sales 300 units at $40
July. 30 Purchase 450 units at $20 = 9,000
Oct. 5 Sales 430 units at $40
Oct. 26 Purchase 100 units at 25 = 2,500
Totals 1,100 units $18,750
Required:
Hemming uses a periodic inventory system. Assume that ending inventory is consists of 45 nits from the March 14 purchase, 75 units from the July 30 purchase, and all 100 units from the October 26 purchase. Using the specific identification method calculate the (a) cost of goods sold and (b) the gross profit.
Answer:
a) Cost of goods sold = Cost of goods available for sale minus ending inventory = $18,750 - $4,675 = $14,075
b) Gross profit = Sales - Cost of goods sold
= $35,200 - 14,075 = $21,125
Explanation:
a) Sales:
Jan. 10 Sales, 150 units at $40 = $6,000
Mar. 15 Sales, 300 units at $40 = 12,000
Oct. 5 Sales, 430 units at $40 = 17,200
Total sales = $35,200
b) Determination of Ending Inventory:
March 14 purchase 45 units x $15 = $675
July 30 purchase 75 units x $20 = $1,500
October 26 purchase 100 units x $25 = $2,500
Total cost of Ending Inventory $4,675
c) Specific Identification Method:
These inventory costing methods are used to ascertain the cost of goods sold and the ending inventory values. Using periodic inventory, the valuation is done at the end of the period. They are FIFO (First-In-First-Out) method, LIFO (Last-In-First-Out) method, weighted average method, and specific identification method. These methods can be applied under perpetual inventory system or periodic inventory system. The difference is in the timing of the valuation activity.
Identify whether the following activities Ere examples Of business-level or corporate level strategy.
a. A company's managers ask, "Should we increase the size of our Bluetooth wireless speaker and sell it at a higher cost?"
b. Never previously known as a computer hardware company, Microsoft decides to enter the tablet manufacturing business, producing the Microsoft Surface.
c. Managers for IBM's SPSS statistics software meet to determine how they Will market the product in the upcoming year. Their decision is to show potential clients how effective SPSS is at analyzing extremely large data sets, and how
the "Direct Marketing" part Of the program helps identify which customers will respond to advertisements.
d. The manufacturer of Chobani Yogurt decided to open a flagship store in Soho, where customers can order special yogurt creations, such as fig and walnut or cucumber and olive oil. Though it was in the business of manufacturing
yogurt for 7 years, the company never tried to run a restaurant before.
Answer: A. Business Level.
B. Corporate Level.
C. Business Level.
D. Corporate Level.
Explanation:
Business level strategies are used by a company to engage in transactions that will enable it to sell it's products and bring in profit to the company. It therefore focuses on the customers the business has.
Corporate Level strategies on the other hand are at organizing level of the Organization. In other words they deal with decisions meant to progress the company to make it bigger or more profitable. For example by selling or buying companies/ business units.
A. This is a business level activity as it focuses on the sales of their Bluetooth products.
B. This is a Corporate Level Strategy as it deals with Microsoft as an Organization entering a new market i.e diversifying for growth.
C. This is a Business level strategy as it deals with the product that the company wants to improve sales of which is SPSS.
D. This is a Corporate Level Strategy because as the text shows, the company has never tried to run a restaurant before. They are therefore diversifying and entering into a new market.
Cherokee Spring Mill produces four varieties of corn meal based on how finely the corn is ground. The mill makes long production runs of high volume. Cherokee Spring Mill uses a(n) _____ process.
Answer:
The correct answer is "continuous"
Explanation:
A continuous process is also called continuous production. In a continuous process, materials being processed for example the four varieties of cornmeal used in the question above are undergoing continuous chemical reactions or physical processing which involves mechanical treatment to ensure a final product without any break in time, substance.
A continuous process is a process where the materials to be used are also processed. Here, production is uninterrupted.
A continuous process has advantages such as, it is cheaper making use of concurrent running of production. It is also a simple process with the aim of minimizing wastage. One of the disadvantages is the maintenance cost of the equipment used.
Important provisions of the Sarbanes-Oxley Act Multiple Choice encourage the destruction of financial documents. approve corporate loans to directors of the company. encourage outside CPA firms to deliver several services to their clients, including auditing services and consulting services. require the CEO and CFO of corporations to certify the accuracy of financial reports.
Answer: require the CEO and CFO of corporations to certify the accuracy of financial reports.
Explanation:
The Sarbanes-Oxley Act of 2002 was passed by the US Congress in the wake of the devastating crisis that engulfed the financial world as a result of the dodgy accounting practices of Enron, WorldCom and Tyco amongst others to protect the Public from acts by companies that would seek to deceive and mislead the public in terms of Accounting and Corporate disclosures.
One of the provisions was that Top Executives such as the CEO and the CFOs of companies personally certify the accuracy of the Financial reports. By doing this they can take personal responsibility and if they make a false certification willingly, they could be prosecuted and jailed.
The payroll register for Gamble Company for the week ended April 29 indicated the following: Salaries $1,250,000 Social security tax withheld 75,000 Medicare tax withheld 18,750 Federal income tax withheld 250,000 In addition, state and federal unemployment taxes were calculated at the rate of 5.4% and 0.6%, respectively, on $225,000 of salaries.Required: a. Journalize the entry to record the payroll for the week of April 29. b. Journalize the entry to record the payroll tax expense incurred for the week of April 29.
Answer with its Explanation:
Part A. The with held taxes will adjusted against the salaries which means with held taxes will be credited and the salaries accrued will be debited and the difference of the accrued salary and with held taxes will go to the salaries payables (Credit).
The double entry is given as under:
Dr Salaries Expenses $1,250,000
Cr Social Security Payables $75,000
Cr Medicare Tax Payables $18,750
Cr Federal Income Tax Payables $250,000
Cr Salaries Payables $906,250
Part B. The state and federal unemployment taxes will also result in the increase in the salaries expense just like the with held taxes.
The double entry would be as under:
Dr Salaries Expense $13,500
Cr State Unemployment Taxes $12,150 (225,000 * 5.4%)
Cr Federal Unemployment Taxes $1,350 (225,000 * 0.6%)
During the year, RIT Corp. had sales of $565,600. Costs of goods sold, and depreciation expenses were $476,000, and $42,800, respectively. In addition, the company had an interest expense of $112,000 and a tax rate of 22 percent. What is the operating cash flow for the year
Answer:
Cash flows from Operating activities is $30800
Explanation:
The first thing that we will calculate is the Net Profit for the year thereafter we will calculate the operating cash flow for the year.
Step 1: Calculate is the Net Profit for the Year
Sales $5,65,600
Less: Cost of Goods Sold ($4,76,000)
Gross margin $89,600
Less: Admin and Selling expenses ($58800)
Less: Depreciation ($42,800)
Less: Interest expense ($112,000)
Net income before tax (124000)
Less: tax -
Net income after tax ($1,24,000)
Step 2: Now we will calculate the Cash flow from Operating activities
Net income after tax ($1,24,000)
Add: Depreciation $42,800
Add: Interest $1,12,000
Cash flow from Operating activities $30800
From 2010 to 2011, nation A's real GDP increased from $100 billion to $106 billion and its population grew from 50 million to 51 million. As a result, real GDP per capita _____ because real GDP rose _____ than the population.
Answer:
As a result, real GDP per capita WILL INCREASE because real GDP rose MORE than the population.
Explanation:
increase in real GDP = $106 - $101 = $5 billion, or 4.95%
population increase = 51 - 50 = 1 million people, or 2%
real GDP per capita 2010 = $101,000 / 50 = $2,020
real GDP per capita 2011 = $106,000 / 51 = $2,078
since the real GDP increased by almost 5%, while the population increased only by 2%, the real GDP per capita will increase by 2.9%
On September 1, Sky Mountain Co. borrowed $68,000 on a 6%, 9-month note payable to Coast National Bank. Given no previous adjusting entries have been recorded, Sky Mountain's adjusting entry four months later at December 31 would include a:
Answer and Explanation:
The journal entry is shown below:
Interest expense ($68,000 × 9% × 4 months ÷ 12 months) $2,040
To Interest payable $2,040
(Being the interest expense is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the interest payable as it also increased the liabilities so that the proper journal entries could be recorded
On December 2, Coley Corp. acquired 1,800 shares of its $4 par value common stock for $23 each. On December 20, Coley Corp. resold 1,400 shares for $13 each. Which of the following is correct regarding the journal entry for the resold shares?
a. Credit Additional Paid-in Capital $7,000
b. Credit Treasury Stock $20,000
c. Debit Cash $15,400
d. Credit Treasury Stock $11,000
e. None of these
Answer:
b. Credit Treasury Stock $20,000
Explanation:
General Journal
For the reacquisition of shares of common stock
Date Account Titles and Explanation Debit Credit
Dec 2 Treasury stock $28,000
Cash (1,400 shares * $20 each) $28,000 (To record the repurchase of shares of common shares
General Journal
For the reissue of shares treasury stock
Date Account Titles and Explanation Debit Credit
Dec 20 Cash (1,000 shares * $11 each) $11,000
Paid-in-capital in excess of par $9,000
- Treasure stock
Treasury stock $20,000
(1,000 shares * $20 per share)
(To record the reissue of treasury stock)
Conclusion: The journal entry to record the reissue of treasury stock is Credit Treasury Stock $20,000.
Oxygen combines with nitrogen in the air to form NOx at about
Answer:
2500° F
Explanation:
Oxygen combines with nitrogen in the air to form NOx at about 2500 degrees Fahrenheit.
Country Furniture Company manufactures furniture at its​ Akron, Ohio, factory. Some of its costs from the past year​ include: Depreciation on sales office: ​ $9,700 Depreciation on factory equipment 16,700 Factory supervisor salary 50,800 Sales commissions 23,900 Lubricants used in factory equipment 3,300 Insurance costs for factory 21,100 Wages paid to maintenance workers 115,900 Fabric used to upholster furniture 10,300 Freightminusin ​(on raw​ materials) 3,300 Costs of delivery to customers 9,100 Wages paid to assemblyminusline workers 115,700 Lumber used to build product 82,900 Utilities in factory 54,600 Utilities in sales office 26,600 Conversion costs for Country Furniture Company totaled:_______ a. $378,100.b. $486,500.c. $526,500.d. $510,500.
Answer:
just asking. is this even a question or a passage for us to read. im confused someone help me out here
Explanation:
Suppose a firm’s sales for the year = $1200 and its average receivables balance is $200. What is the firm’s Accounts Receivable Turnover Ratio, expressed in days (not times per year)?
Answer:
61 days
Explanation:
Accounts receivable turn over ratio is an efficiency ratio that is used to calculate how efficiently a company is receiving its sales on account payments . This measures the number of times in a period that a company collects its average accounts receivable.
When expressed in days , it reveals the number of days it takes a sales on account customer to make payment
Workings
Annual sales = 1200
Average receivable balance = 200
Receivable turnover ratio = Annual sales /average receivable balance
1200/ 200 = 6
Account receivable turnover ratio in days = 365/receivable turnover ration
365/6 = 60.8 days = approximately 61 days
This shows that it takes a customer approximately 61 days to pay their purchase on account which
A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period. Its days' sales uncollected equals: (Use 365 days a year.) Multiple Choice 8.0 days. 58.9 days. 45.8 days. 7.4 days. 45.2 days.
Answer:
45.8 days
Explanation:
The computation of the days sales uncollected is shown below:
But before that first we need to find out the inventory turnover ratio which is
Inventory turnover ratio = Sales ÷ Accounts receivable
= $21,500 ÷ $2,700
= 7.96 times
Now Days sales uncollected is
= 365 ÷ Inventory turnover ratio
= 365 ÷ 7.96
= 45.8 days
We simply applied the above formulas
Skolits Corp. issued 20-year bonds 2 years ago at a coupon rate of 8.9 percent. The bonds make semiannual payments. If these bonds currently sell for 110 percent of par value, what is the YTM
Answer:
The YTM is 7.85%
Explanation:
Since 20 year bonds were issued 2 years ago,
Time to Maturity = 18 years
Coupon Rate = 8.9%
Lets assume that the par value of the bond is $100
The bonds make semi-annual payments,
Therefore, number of periods = 18 × 2 = 36
Semi-annual Coupon =( 8.9% × 100 ) / 2 = $4.45
Current Value of Bond = 110% of par value = 1.1 × 100 = $110
YTM is the discount rate which makes the present value of all the future cash flows equal to the current value of the bond, that is $110 , which means
110 = [tex]4.45/(1+r)^1[/tex] + [tex]4.45/(1+r)^2[/tex] + ... + [tex]4.45/(1+r)^{35[/tex] + [tex]104.45/(1+ r)^{36[/tex]
where, r is YTM/2
r = 3.927%
Therefore, YTM = 3.927 × 2 = 7.85%
The Fed has decided to expand the money supply, leading to lower interest rates. As the CEO of an energy company, you react to these lower interest rates by deciding to expand your operations and construct a new pipeline across the state of Virginia. What impacts would this decision have on the macroeconomy
Answer:
The answer are:
1. Raising Gross Domestic Product(GDP)
2. Reducing unemployment
C. increasing the investment part of GDP
Explanation:
The impacts would be the following:
1. Raising Gross Domestic Product(GDP): Gross Domestic Product(GDP) is the market value of all final goods and services produced within a country during a specific period (usually a year). By deciding to expand your operations and construct a new pipeline across the state of Virginia, the CEO is adding to the country's GDP
2. Reducing unemployment: Expanding operations and construct a new pipeline across the state of Virginia, the CEO will create new employments because more hands will be needed for the expansion.
C. increasing the investment part of GDP. The components of GDP are Consumers' consumption, firms' investment, government expenditure, exports and imports. The expansion and the new investment (construction new pipeline) will increase the firms' investment component or variable.
Big Canyon Enterprises has bonds on the market making annual payments, with 17 years to maturity, a par value of $1,000, and a price of $969. At this price, the bonds yield 8.1 percent. What must the coupon rate be on the bonds?
Answer:
7.8%
Explanation:
For computing the coupon rate first we have to determine the PMT by using the PMT formula which is shown in the attachment below:
Given that,
Present value = $969
Future value or Face value = $1,000
RATE =8.1%
NPER = 17 years
The formula is shown below:
= PMT(RATE;NPER;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the PMT is $77.58
Now the coupon rate is
= $77.58 ÷ $1,000
= 7.8%
Using both the supply and demand for bonds and liquidity preference framework, show how interest rate are affected when the riskiness of bonds rises. Are the results the same in the two frame works
Answer:
Yes, the results are the same in both frameworks. Please see below for explanation.
Explanation:
With regards to the bond supply and demand framework, people will look to buy more bonds since they are more wealthy now. Hence, the supply of bonds will increase. The supply curve and the demand curve will both move to the right, with the former shifting more than the latter. The equilibrium interest rate will increase.
With regards to the liquidity preference framework, once the economy experiences a positive shift, there will also be an increase in the demand for money. People will make an increased number of transactions as well and hence, the demand curve will move towards the right. The equilibrium interest rate will rise too.
The internal financial statements of Vera Incorporated show that their beaded purses incurred an operating loss in the most recent year. There were 27 comma 000 purses sold in that year. Selected financial information about the purse line follows. Total sales revenue $ 191 comma 000 Variable costs $ 92 comma 000 Contribution margin $ 99 comma 000 Fixed costs $ 101 comma 000 Net operating loss $( 2 comma 000 ) If the line of purses were to be discontinued, the company would avoid $ 21 comma 000 in fixed costs per year. If Vera Incorporated were to discontinue the line of purses, the change in annual operating income would be
Answer:
Vera Incorporated
Change in annual operating income from discontinued business:
Annual Operating Income would reduce by $78,000.
Explanation:
a) Calculation of the Net Income Lost:
Loss of Contribution ($99,000)
Avoidable fixed cost $21,000
Reduction of Income ($78,000)
b) The line of purses contributes $80,000 towards the company's fixed cost. Therefore, discontinuing this line of business would lead to the loss of this steam of income. The amount of reduced operating income will be $78,000 ($80,000 - 2,000).
Roy Company manufactures a product in Departments A and B. Materials are added at the beginning of the process in Department B. Roy uses the weighted-average method in its process costing system. Conversion costs for Department B were 50% complete with respect to the 6,000 units in the beginning work in process and 75% complete with respect to the 8,000 units in the ending work in process. A total of 12,000 units were completed and transferred out of Department B during February. An analysis of the costs in Department B for February follows: The total cost per equivalent unit during February was closest to:_________
a. $2.75
b. $2.78
c. $2.82
d. $2.85
Answer:
Number of equivalent units= 18,000
Explanation:
Giving the following information:
Conversion costs for Department B were 50% complete concerning the 6,000 units in the beginning work in process and 75% complete for the 8,000 units in the ending work in process. A total of 12,000 units were completed and transferred out of Department B during February.
With the information provided, we can calculate the number of equivalent units of the period.
Beginning work in process = 6,000*0.5= 3,000
Units started and completed = 12,000 - 3,000= 9,000
Ending work in process completed= 8,000*0.75= 6,000
Number of equivalent units= 18,000
Daniel acquires a 30 percent interest in the PPZ Partnership from Paolo, an existing partner, for $48,000 of cash. The PPZ Partnership has borrowed $19,000 of recourse liabilities as of the date Daniel bought the interest. What is Daniel's basis in his partnership interest
Polk Software Inc. has a quick ratio of 2.00, $29,475 in cash, $16,375 in accounts receivable, some inventory, total current assets of $65,500, and total current liabilities of $22,925. The company reported annual sales of $500,000, and cost of goods sold equal to 75% of sales in the most recent annual report. Over the past year, how often did Polk Software Inc. sell and replace its inventory?
Answer:
Inventory Turnover = 19.08 times
Inventory Days = 19.13 days
Explanation:
Polk Software Inc.
Quick ratio 2.00,
Cash $29,475
Accounts receivable $16,375
Inventory= ?= $19650
Total current assets $65,500
Total current liabilities $22,925
Annual sales $500,000,
Cost of Goods Sold 75% of sales= $375,000
Quick Ratio = Current Assets - Inventory/Current liabilities
Quick Ratio *Current liabilities= Current Assets - Inventory
2* $22,925= $65,500- Inventory
45850 = $65,500- Inventory
$65,500-45850= Inventory
Inventory = $19650
Inventory Turnover = Cost Of Good Sold/ Average Inventory
We take the current inventory as the average inventory
Inventory Turnover = $ 375,000/ 19650= 19.08 times
Inventory Turnover tells us that how often the inventory is converted to sales.
High inventory turnover means how often inventory is converted to sales .
Inventory Days = 365/inventory Turnover = 365/19.08 = 19.13 days
Inventory days means the average number of days the company holds ints inventory before it is sold.
A government worker surveys a number of households and comes up with the following information: there were a total of 90 people in the households, 10 of the people were children under 16, 10 of the people were retired but still capable of working, 35 people had full-time jobs, 5 had part-time jobs, 5 were stay-at-home parents, 5 were full-time students over the age of 16, 5 were disabled people who could not work, 10 people had no job but were looking for jobs, and there were 5 people who wanted a job but were not looking for a job.
According to the information in the survey, the unemployment rate is:_______
Answer:
27%
Explanation:
Number of Persons in the Household = 90
Neither Employed Nor Unemployed
Children Under 16 =10Disabled = 5Retired =10Stay at Home Parents = 5Full Time Students over the age of 16= 5Total =35
Unemployed
10 people had no job but were looking for jobs5 people who wanted a job but were not looking for a job.Total =15Employed
35 people had full-time jobs5 had part-time jobsTotal =35+5=40
Total Labour Force = Unemployed +Employed = 40+15 =55
Unemployment Rate = (Unemployed People / Total Labor) x 100
=15/55 X 100
=27%
According to the information in the survey, the unemployment rate is: 27%
Cullumber Company purchased machinery on January 1 at a list price of $320000, with credit terms 4/10, n/30. Payment was made within the discount period. Cullumber paid $21750 sales tax on the machinery and paid installation charges of $5900. Prior to installation, Cullumber paid $11200 to pour a concrete slab on which to place the machinery. What is the total cost of the new machinery
Answer:
the total cost of the new machinery is $302,550
Explanation:
Cost of a Property Plant and Equipment (PPE) item includes Purchase price of asset and other costs directly incurred in bringing the asset in the location and condition required by management for operation excluding taxes that can be claimed.
Thus the Cost of this Machinery Can be Calculated as :
List Price $320,000
Less Cash Discount at 4% ($12,800)
Purchase Price $307,200
Less Sales Tax ($21,750)
$285,450
Add installation charges $5,900
Add Cost of concrete slab $11,200
Total Cost of Machinery $302,550
Closet Links Clothing Company provided the following manufacturing costs for the month of June. Direct labor cost $ 132 comma 000 Direct materials cost 83 comma 000 Equipment depreciation (straightminusline) 20 comma 000 Factory insurance 18 comma 000 Factory manager's salary 10 comma 000 Janitor's salary 3 comma 000 Packaging costs 19 comma 800 Property taxes 16 comma 000 From the above information, calculate Closet Link's total variable costs.
Answer:
Closet Link's total variable costs is $234,800
Explanation:
Given:
Direct labor cost = $ 132,000
Direct materials cost = $83,000
Equipment depreciation (straight-line) = $20,000
Factory insurance = $18,000
Factory manager's salary = $10,000
Janitor's salary = $3,000
Packaging costs = $19,800
Property taxes = $16,000
Total variable costs = Direct materials cost + Direct labor cost + Packaging costs
= $83,000 + $132,000 + $19,800 = $234,800