Rose Company had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017.

Apr. 16 Purchased 6,000 shares of Gem Co. stock at $21.50 per share plus a $340 brokerage fee.
May 1 Paid $210,000 to buy 3-month U.S. Treasury bills (debt securities): $210,000 principal amount, 4% interest, securities mature on July 31.
July 7 Purchased 3,000 shares of PepsiCo stock at $52.00 per share plus a $310 brokerage fee. 20 Purchased 1,500 shares of Xerox stock at $16.00 per share plus a $390 brokerage fee.
Aug. 1 Received a check for principal and accrued interest on the U.S. Treasury bills that matured on July 31.
Aug 15 Received an $.95 per share cash dividend on the Gem Co. stock. 28 Sold 3,000 shares of Gem Co. stock at $28.25 per share less a $430 brokerage fee.
Oct. 1 Received a $1.80 per share cash dividend on the PepsiCo shares.
Dec. 15 Received a $1.10 per share cash dividend on the remaining Gem Co. shares.
Dec. 31 Received a $1.10 per share cash dividend on the PepsiCo shares.

Required:
a. Prepare journal entries to record the preceding transactionsand events.
b. Prepare a table to compare the year-end cost and fair valuesof Perryâs short-term investments in available-for-sale securities.The year-end fair values per share are: Gem Co., $28.00; PepsiCo,$46.25; and Xerox, $12.00.
c. Prepare an adjusting entry, if necessary, to record theyear-end fair value adjustment for the portfolio of short-terminvestments in available-for-sale securities.

Answers

Answer 1

Answer:

Rose Company

1. Journal Entries:

April 16:

Debit Investments in available for sale securities $129,340

Credit Cash Account $129,340

To record the purchase of 6,000 shares of Gem Co. stock at $21.50 per share plus a $340 brokerage fee.

May 1:

Debit U.S. Treasury Bills $210,000

Credit Cash Account $210,000

To record the purchase of 3-month U.S. Treasury bills, 4% interest.

July 7:

Debit Investment in PepsiCo Stock $156,310

Credit Cash Account $156,310

To record the purchase of 3,000 shares of PepsiCo stock at $52.00 per share plus a $310 brokerage fee.

July 20:

Debit Investment in Xerox Stock $24,390

Credit Cash Account $24,390

To record the purchase of 1,500 shares of Xerox stock at $16.00 per share plus a $390 brokerage fee.

July 31:

Debit Interest Receivable from U.S. Treasury Bills $2,100

Credit Interest Revenue $2,100

To record the accrued interest on the bills.

Aug. 1:

Debit Cash Account $212,100

Credit Interest Receivable $2,100

Credit U.S. Treasury Bills $210,000

To record the receipt of check for principal and accrued interest on July 31 maturity.

Aug. 15:

Debit Cash Account $5,700

Credit Dividend $5,700

To record receipt of $.95 per share cash dividend on the Gem Co. stock.

Aug. 28:

Debit Cash Account $84,320

Credit Investment in available for sale securities $84,320

To record the sale of 3,000 shares of Gem Co. stock at $28.25 per share less a $430 brokerage fee.

Oct. 1:

Debit Cash Account $5,400

Credit Dividends $5,400

To record the receipt of cash dividends on PepsiCo shares.

Dec. 15:

Debit Cash Account $3,300

Credit Dividends $3,300

To record the receipt of cash dividends on 3,000 GemCo shares.

Dec. 31:

Debit Cash Account $3,300

Credit Dividends $3,300

To record the receipt of $1.10 per share cash dividend on the PepsiCo shares.

b.  Comparison of year-end cost and fair values of short-term investments:

                              Year-end     units          Fair             Fair Value

                                  cost                         Values        Difference

Gem Co., $28.00    $45,020    3,000     $84,000       $38,980

PepsiCo,$46.25     $156,310    3,000    $138,750       -$17,560

Xerox, $12.00         $24,390     1,500      $18,000        -$6,390

c. Adjusting Entries

Dec. 31:

Debit Investment in available for sale securities $38,980

Credit Unrealized Gain on Investment $38,980

To record the unrealized gain based on fair value.

Dec. 31:

Debit Unrealized Loss $17,560

Credit Investment in PepsiCo Stock $17,560

To record the unrealized loss based on fair value.

Dec. 31:

Debit Unrealized Loss $6,390

Credit Investment in Xerox $6,390

To record the unrealized loss based on fair value.

Explanation:

a) Year-end Balances:

GemCo.

Initial investment = $129,340

Sale of 3,000 share (84,320)

Ending balance  =  $45,020

PepsiCo.

Initial investment = $156,310

Xerox

Initial investment = $24,390

b) Unrealized Gains and Losses on Investments:  These are not tax deductible.  As a rule, you do not pay taxes on such gains and losses.  They are recorded in the Statement of Changes in Equity.


Related Questions

Hawar International is a shipping firm with a current share price of $5.50 and 10 million shares outstanding. Suppose Hawar announces plans to lower its corporate taxes by borrowing $20 million and repurchasing shares. a. With perfect capital markets, what will the share price be after this announcement

Answers

Answer:

New share price = $6.1

Explanation:

DATA

The Current share price                  $5.50

Outstanding shares                         $10m

borrowing shares                             $20m

Corporate tax rate                            30%

Required: share price be after this announcement?

Formula:

New share price = tax rate x ([tex]\frac{borrowing shares}{Outstanding shares}[/tex]) + current share price

Solution:

New share price = 30% x ([tex]\frac{20m}{10m}[/tex]) + $5.5

New share price =  0.6 x $5.5

New share price = $6.1

Earley Corporation issued perpetual preferred stock with an 8% annual dividend. The stock currently yields 7%, and its par value is $100.
a. What is the stock’s value?
b. Suppose interest rates rise and pull the preferred stock’s yield up to 9%.
c. What is its new market value?

Answers

Answer:

a.

Current Share Price = $87.5

c.

The new market value is $77.78

Explanation:

a.

The dividend per year on the preferred stock = 100 * 0.07 = $7

The yield on the preferred stock can be calculated as,

Yield = Preferred dividend / Current Share price

As we know the Yield and the dividend, we can calculate the current share price.

0.08 = 7 / Current Share price

Current Share Price = 7 / 0.08

Current Share Price = $87.5

c.

The dividend per share on the preferred stock remains the same at $7. The new yield is 9%. Using the yield formula we can calculate the new share price,

0.09 = 7 / New Share price

New Share Price = 7 / 0.09

New Share Price = 77.78

Storico Co. just paid a dividend of $2.05 per share. The company will increase its dividend by 24 percent next year and then reduce its dividend growth rate by 6 percentage points per year until it reaches the industry average of 6 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company's stock is 10 percent, what will a share of stock sell for today

Answers

Answer:

A share of stock sell for $74.21 today.

Explanation:

This can be calculated as follows:

Dividend per share in year 1 = Year 0 dividend * (1 + growth rate of year 1 dividend) = $2.05 * (1 + 24%) = $2.5420

PV of year 1 dividend per share = Year 1 dividend / (1 + rate of return)^1 = $2.5420 * / (1 + 10%)^1 = $2.31090909090909

Dividend per share in year 2 = Year 1 dividend * (1 + growth rate of year 1 dividend) = $2.5420 * (1 + (24% -6%)) = $2.5420 * (1 + 18%) =$3.00

PV of year 2 dividend per share = Year 2 dividend / (1 + rate of return)^2 = $3.00 / (1 + 10%)^2 = $2.47933884297521

Dividend per share in year 3 = Year 2 dividend * (1 + growth rate of year 2 dividend) = $3.00 * (1 + (18% -6%)) = $3.00 * (1 + 12%) =$3.36

PV of year 3 dividend per share = Year 3 dividend / (1 + rate of return)^3 = $3.36 / (1 + 10%)^3 = $2.5244177310293

Dividend per share in year 4 = Year 3 dividend * (1 + growth rate of year 3 dividend) = $3.36 * (1 + (12% -6%)) = $3.36 * (1 + 6%) =$3.5616

PV of year 4 dividend per share = Year 4 dividend / (1 + rate of return)^4 = $3.5616 / (1 + 10%)^4 = $2.43262072262824

Dividend per share in year 5 = Year 4 dividend * (1 + growth rate of year 4 dividend) = $3.5616 * (1 + 6%) = $3.775296

Price at year 4 = Year 5 dividend / (Rate of return – growth rate) = $3.775296 / (10% - 6%) = $94.3824

PV of price at year 4 = Price at year 4 / (1 + rate of return)^4 = $94.3824 / (1 + 10%)^4 = $64.4644491496482

Share price to day = PV of year 1 dividend per share + PV of year 2 dividend per share + PV of year 4 dividend per share + PV of year 4 dividend per share + PV of price at year 4 = $2.31090909090909 + $2.47933884297521 + $2.5244177310293 + $2.43262072262824 + $64.4644491496482 = $74.21

Prezas Company's balance sheet showed total current assets of $4,250, all of which were required in operations. Its current liabilities consisted of $975 of accounts payable, $600 of 6% short-term notes payable to the bank, and $250 of accrued wages and taxes. What was its net operating working capital?

Answers

Answer:

The Net working capital is 3025 dollars.

Explanation:

Total current assets in the balance sheet = $4250

The current liabilities in the balance sheet = $975

Account payable = $600

Accrued wages and taxes = $250

Below is the calculation of net operating working capital.

Net working capital = current assets – current liabilities.

Net working capital = 4250 – (975 + 250)

Net working capital = 4250 – 1225

Net working capital = 3025 dollars.

Here, interest will not be considered. So the net working capital is $3025

Assume that 11 comma 200 units were in beginning WIP​ Inventory, 35 comma 500 were​ started, 33 comma 000 were​ completed, and 13 comma 700 were in ending WIP Inventory. Direct materials are added at the beginning of the process. What are the total equivalent units for direct​ materials?

Answers

Answer:

If company uses weighted average method, then equivalent unit of direct material = Units completed + units in ending WIP

= 33,000 + 13,700

= 46,700 units

If company uses FIFO method, then equivalant unit of direct material = Unit started and completed + Units in ending WIP  

= 33,000 - 11,200 + 13,700

= 35,500 units

Mayan Company had net income of $33,480. The weighted-average common shares outstanding were 9,300. The company declared a $4,000 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company's earnings per share is:

Answers

 Answer:

EPS = $3.17

Explanation:

Earnings per share(EPS) is the total earnings attributable to ordinary shareholders divided by the number of units of common stock.

EPS= Earnings attributable to ordinary shareholders/number of ordinary shares

Earnings attributable to ordinary shareholders= Net income after tax - preference dividend  

Earnings attributable to ordinary shareholders = net income - preference divi dend

Earnings = 33,480 - 4000 = 29,480

EPS = 29,480/9,300 =3.169

EPS = $3.17

Marla Staples is concerned with identity theft. One of the ways that she can protect her information from leaking out to the wrong hands is to: limit her purchases with vendors that she knows do not store her information in a database. limit her travels to only the U.S. because identity theft is an international problem. avoid all e-commerce transactions because this is the only type of buying transaction where websites and others handle sensitive, personal information. install antivirus software, firewalls, and anti-spyware software on her computer.

Answers

Answer: Install antivirus software, firewalls, and anti-spyware software on her computer.

Explanation:

Marla's computer is the most likely place where people can gain access to her personal information for use to propagate identity theft. Personal computers have all sorts of personal information such as scanned copies of birth certificates, academic achievements, photographs, bank statements and the like. If the security on a personal computer is breached, it could be quite harmful.

For this reason Marla should install antivirus software, firewalls, and anti-spyware software on her computer to protect it from unwanted access from everyone including people who would use her information for the wrong reasons.

Jammer Company uses a weighted average perpetual inventory system and reports the following: August 2 Purchase 10 units at $12 per unit. August 18 Purchase 15 units at $15 per unit. August 29 Sale 20 units. August 31 Purchase 14 units at $16 per unit. What is the per-unit value of ending inventory on August 31

Answers

Answer:

The per-unit value of ending inventory on August 31= $15.42

Explanation:

The weighted average method of inventory determines the average cost per unit of inventory each time a new batch is received The explanation is completed using the table below with notes underneath

The

Date     Narration          Qty        Unit cost($)      Total cost

Aug 2   Purchase          10             12                        120

Aug 18  Purchase            15             15                     225

                                     25           13.8  *                    345

Aug 29                       ( 20)            13.8                    (276 )

                                      5                                          69

Aug 31                           14                 16                   224

Aug 31                          19            15.42 **                 293

Notes

*The average cost of 13.8 is the division of 345 by 25.

**The average cost of $15.42 is the division of 293 by 19

The per-unit value of ending inventory on August 31= $15.42

               

The per-unit value of the ending inventory on August 31, using the weighted average perpetual inventory system, is approximately $14.59.

Step 1: Calculate the total cost of the purchases.

Purchase on August 2: 10 units at $12 per unit = $120

Purchase on August 18: 15 units at $15 per unit = $225

Purchase on August 31: 14 units at $16 per unit = $224

Total cost of purchases = $120 + $225 + $224 = $569

Step 2: Calculate the total number of units purchased.

Total units purchased = 10 units + 15 units + 14 units = 39 units

Step 3: Calculate the weighted average cost per unit.

Weighted average cost per unit = Total cost of purchases / Total units purchased

Weighted average cost per unit = $569 / 39 units ≈ $14.59

Learn more about inventory here:

brainly.com/question/31827018

#SPJ6

Bekah is an adviser for the company Vicoltech, which deals heavily in investments. Bekah also advises several other clients in her state, but no clients outside of her state. Before the Dodd-Frank Act was passed, Bekah was exempt from registration and reporting requirements with the SEC. When the Dodd-Frank Act was passed:

Answers

Answer: d. Bekah was still exempt from the SEC’s reporting requirements.

Explanation:

Here are the options:

a. Indeterminable with current information

b. Bekah was required to register with the SEC, but not required to report information to

c. Bekah was required to begin reporting information to the SEC.

d. Bekah was still exempt from the SEC’s reporting requirements.

The Dodd-Frank Act is a comprehensive bill which places very strict regulations on the banks and lenders in order to help protect the consumers and also help in the prevention of economic recession

Based on the scenario in the question, Bekah will still be exempt from the SEC’s reporting requirements because in the Dood-Frank Act, it was stated that advisers that are only working in the same state with their clients are exempted from reporting requirements with the Security Exchange Commission.

Femur Co. acquired 70% of the voting common stock of Harbor Corp. on January 1, 2020. During 2020, Harbor had revenues of $2,500,000 and expenses of $2,000,000. The amortization of fair value allocations totaled $60,000 in 2020. Not including its investment in Harbor, Femur Co. had its own revenues of $4,500,000 and expenses of $3,000,000 for the year 2020. The noncontrolling interest's share of the earnings of Harbor Corp. for 2020 is calculated to be

Answers

Answer:

The answer is $132,000

Explanation:

Solution

Given that:

Harbor revenues = $2,500,000

Expenses = $2,000,000

The amortization of fair value allocations = $60,000

Femur corporation revenues =$4,500,000

expenses = $3,000,000

Now,w e have to compute for the non controlling interest's share of the earnings of Harbor Corp which is given below:

=[revenue of harbor - expenses of harbor - amortization of fair value allocations]  30%

= [$2,500,000  - $2,000,000- $60,000] * 30%

=[$500000 - $60000]* 30%

=$132,000

Therefore the non controlling interest's share of the earnings of Harbor Corp is $132,000

The weighted-average cost method is used by Gomez, Inc. Sales are $320,000, the number of units available for sale is 100, the number of units sold during the period is 75, and the weighted-average cost of the goods available for sale is $800 each. How much is gross profit for the company

Answers

Answer:

Gross profit = $260,000

Explanation:

The gross profit is the profit earned directly after subtracting the direct cost of goods sold from the sales revenue.

The cost of goods sold represents the cost of inputs associated with units sold. They are direct cost which are incurred wholly and specifically on the goods sold. They exclude overhead and other indirect costs.x

Direct costs include direct material cost , direct labour cost and direct expenses

The gross profit  can be determined using the relationship below

Gross profit = Sales revenue - cost of goods sold.

Cost of goods sold = $800  × 75 = 60,000

Gross profit = $320,000 - 60,000= $260,000

Gross profit = $260,000

The restaurant's total cost is a mixed cost that depends on customers served. The restaurant's management uses the high-low method to estimate the variable and fixed components of this cost. If the management believes that the restaurant will be able to serve 16,000 customers in December, the restaurant's estimated total cost for December is closest to

Answers

Answer:

$29,390

Explanation:

For computing the total cost first we have to determine the variable cost per customer and the fixed cost which is shown below:

Variable cost Per Customer is

= (High total cost - low total cost) ÷ (high number of customer served - low cost of customer served)

= ($28,934 - $28,241) ÷ (14,100 - 11,214)

= $0.24

Now

Fixed cost is

= High cost - (high number of customer served × variable cost per customer)

= 28,934 - (14,100 × 0.24)

= $25,550

So, the total cost for 16,000 customers is

= Fixed cost + variable cost

= $25,550 + (16,000 × $0.24)

= $29,390

On August 4, Rothchild Company purchased on account 12,000 units of raw materials at $14 per unit. During August, raw materials were requisitioned for production as follows: 5,000 units for Job 40 at $8 per unit and 6,200 units for Job 42 at $14 per unit.

Required:
Journalize the entry on August 4 to record the purchase and on August 31 to record the requisition from the materials storeroom.

Answers

Answer and Explanation:

The journal entries are shown below:

On Aug 4

Raw Materials   (12,000 units × $14) $168,000  

            To Accounts Payable   168,000

(Being the raw material purchased is recorded)

For recording this we debited the raw material as it increased the assets and credited the account payable as it also increased the liabilities

On Aug 31

Work in Process Dr $126,800  

           To Raw materials inventory  $126,800

($5,000 × $8) + ($6,200 × $14)  

(Being the requisition is recorded)

For recording this we debited the work in process and credited the raw material inventory

On the first day of the fiscal year, a company issues an $949,000, 9%, five-year bond that pays semiannual interest of $42,705 ($949,000 x 9% x 1/2), receiving cash of $892,100. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank.

Answers

Answer:

Bond issue price                                                    $892,100

Face value                                                              $949,000

Discount on bond                                                   $56,900

Number of Interest payments (10 years x 2)          10

Discount to be amortized per payment                $5,690

Interest on bond                                                    $51,210

Date        Description                               Debit        Credit

Dec.  31 Bond interest expense             $56,900

              Discount on bonds payable                      $5,690

              Cash                                                           $51,210

              (Interest on bond paid and Premium amortized)

Denver Corporation purchased a patent for $405,000 on September 1, 2016. It had a useful life of 10 years. On January 1, 2018, Denver spent $99,000 to successfully defend the patent in a lawsuit. Denver feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2018

Answers

Answer:

amount that should be reported for patent amortization expense for 2018 will be $90000.27

Explanation:

given data

purchased patent = $405,000

useful life = 10 years

spent = $99,000

remaining useful life = 5 years

solution

first we get here amortization from September 1, 2016 - January 1, 2018 that is

September 1 - december 31 = [tex]\frac{4}{12}[/tex]  = 0.333333

amortization = (1 + 0.333333) × (405000 ÷ 10)

amortization = $53998.65

and

now we get remaining value before defence

remaining value = $405,000 - $53998.65

remaining value = $351001.35

and

now we get here amount to be reported for patent amortization expense for 2018

amount = ( $351001.35 + $99,000 ) ÷ 5

amount = $90000.27

so amount that should be reported for patent amortization expense for 2018 will be $90000.27

According to Porter, the generic competitive strategy that reflects the ability of the corporation or its business unit to design, produce, and market a comparable product more efficiently than its competitors is called focus. competitive scope. cost leadership. diversification. differentiation.

Answers

Answer:

The correct answer is: cost leadership

Explanation:

According to Porter, every company has a strategy, whether planned or unplanned, being directly influenced by the environment in which it operates and by the industries and competitive sector. For him, companies should use the generic strategies mentioned by him so that they can survive the five competitive forces of the industry. Porter's generic strategies are: cost leadership, differentiation and focus.

The most appropriate generic strategy for the above question is cost leadership, whose central objective is to achieve total leadership in a given sector, using appropriate policies and procedures for that purpose.

The objective is achieved when a company develops a quality structure that brings together efficient equipment, qualification of personnel and control of expenses in order to maintain a low cost that generates greater returns for the company than those of its competitors.

Interviews in which the interviewer adapts his or her line of questioning based on the answers you give and any questions you ask are known as ________ interviews. Group of answer choices panel stress behavioral unstructured situational

Answers

Answer:

unstructured interviews.

Explanation:

Unstructured interviews are also called open-ended interviews. The questions asked in such type of interviews are not structured or pre-determined. Unstructured interview is based on your answers to the interviewer. The interviewer will not prepare any questions in advance, poses random questions instead. The interviewer might ask general questions but can also ask certain random questions or move to certain subjects depending on the your answers.

The option Panel interview is not appropriate for this statement because in such an interview the candidate or participant meets with several interviewers simultaneously.

The option Stress interview is also not suitable because such an interview is intended to confuse or throw the interviewee off balance by criticizing or giving hostile reaction to the candidate in order to examine how a candidate handles stress or pressure.

Behavioral is also not a correct option because in such interviews the questions are related to the past work experiences in order to assess how a candidate handled different job scenarios and it also provides information about the candidate's temperament, talents and skill.

Situational is also not a correct option because this is a bit similar to behavioral interview in which candidate is asked questions except the questions in situational interviews focus on how a candidate can deal with various realistic scenarios at work.

Accrual accounting is used because Group of answer choices cash flows are considered less important. it provides a better indication of ability to generate cash flows than the cash basis. it recognizes revenues when cash is received and expenses when cash is paid. none of these.

Answers

Answer:

The answer is B. it provides a better indication of ability to generate cash flows than the cash basis

Explanation:

Accrual basis of accounting is a method where revenue and expenses are recognized in the period the transaction occurs irrespective of whether cash is received or not at that period unlike cash basis accounting which recognizes revenue only when cash is received and payment only when cash is given out.

The importances are:

1. It gives an exact picture of the cash flow of the company

2.it provides a better indication of ability to generate cash flows than the cash basis

"Chet has been known to say, "If you ever see me with anything other than a Coke in my hand, check my pulse. I must be dead. " When Chet is thirsty for a soft drink, he obviously skips the _______________ stage of the consumer decision process. "

Answers

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Information search

b) Prepurchase evaluation

c) Evaluation of alternatives

d) Evoked set determination

e) All of the above

And the correct answer is the option E: All of the above.

Explanation:

To begin with, the consumer decision process is the name that receives in the field of marketing a process that focus on the path the consumer has to go though in order to achieve a purchase. In that process there are many stages and in the beginning the consumer has to do a pre purchase evaluation in where he will have to obtain information from the products by doing a search and he will have to evaluate the alternatives so therefore that when Chet is thirsty and buys a Coke directly he is skipping all of those parts in the consumer decision process.

Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information:
Wolfpack Company
Balance Sheet
June 30
Assets
Cash $ 75,000
Accounts receivable 50,000
Inventory 30,000
Buildings and equipment, net of depreciation 150,000
Total assets $ 305,000
Liabilities and Stockholders’ Equity
Accounts payable $ 35,300
Common stock 100,000
Retained earnings 169,700
Total liabilities and stockholders’ equity $ 305,000
Budgeting Assumptions:
All sales are on account. Thirty percent of the credit sales are collected in the month of sale and the remaining 70% are collected in the month subsequent to the sale. The accounts receivable at June 30 will be collected in July.
All merchandise purchases are on account. Twenty percent of merchandise inventory purchases are paid in the month of the purchase and the remaining 80% is paid in the month after the purchase.
The budgeted inventory balance at July 31 is $22,000.
Depreciation expense is $3,000 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred.
The company’s cash budget for July shows expected cash collections of $77,000, expected cash disbursements for merchandise purchases of $44,500, and cash paid for selling and administrative expenses of $15,000.
Prepare a balanced budget sheet as of July 1st.

Answers

Answer:

Wolfpack Company

Balanced Budget Sheet as of July 1st:

Wolfpack Company

Balance Sheet  as of June 30

Assets

Cash                                                                   $ 92,500

Accounts receivable                                             63,000

Inventory                                                               22,000

Buildings and equipment, net of depreciation  147,000

Total assets                                                    $ 324,500

Liabilities and Stockholders’ Equity

Accounts payable                                            $ 36,800

Common stock                                                  100,000

Retained earnings                                             187,700

Total liabilities and stockholders’ equity     $ 324,500

Explanation:

a) Data

Wolfpack Company

Balance Sheet  as of June 30

Assets

Cash                                                                    $ 75,000

Accounts receivable                                             50,000

Inventory                                                               30,000

Buildings and equipment, net of depreciation 150,000

Total assets                                                    $ 305,000

Liabilities and Stockholders’ Equity

Accounts payable                                            $ 35,300

Common stock                                                 100,000

Retained earnings                                            169,700

Total liabilities and stockholders’ equity    $ 305,000

b) Accounts Receivable

Beginning balance = 50,000

Sales                          90,000

Cash receipts:

30%                           (27,000)

June balance           (50,000)   Total receipts = $77,000

Ending balance         63,000

30% receipts = $27,000 ($77,000 - 50,000)

Sales = $27,000/30% = $90,000

Ending balance = $63,000 ($90,000 x 70%)

c) Accounts Payable

Beginning balance         35,300

Purchases                      46,000

Payments:

20%                                 (9,200)

June balance                (35,300) Disbursement = $44,500

Ending balance (80%)   36,800

20% cash payment = $9,200 ($44,500 - 35,300)

Purchases = $46,000 (9,200/20%)

Ending balance = $36,800 ($46,000 x 80%)

d) Cost of goods sold:

Beginning Inventory     30,000

Purchases                     46,000

Available for sale          76,000

Ending inventory        (22,000)

Cost of goods sold      54,000

Depreciation $3,000

e) Income Statement for July

Sales                         90,000

Cost of goods sold  54,000

Gross profit             36,000

Depreciation            (3,000)

Selling & Admin      (15,000)

Net Income            $18,000

f) Retained Earnings:

Beginning balance  $169,700

Net income                  18,000

Ending balance       $187,700

g( Cash balance:

Beginning balance $75,000

Cash collections       77,000

Cash disbursements:

Purchases               (44,500)

Selling & admin       (15,000)

Ending balance     $92,500

What is the approach that Scrum encourages when a Team determines it will be difficult to deliver any value by the end of a Sprint

Answers

Answer:

A.  Together with the Product Owner, focus on what can be done and identify a way to deliver something valuable at the end of each Sprint

Explanation:

The approach that is to be applied for delivering the value that becomes difficult is to come together by involving the owner of the product so that we get to know by focusing it and identify the way for delivering the valuable things so that in return the customer could satisfy with the product and the chances of building a long term relation would became high

g "9. (a) Explain how financial ratio analysis of a firm’s projected cash flow budget could be efficiently used by its managers for financial planning. (b) Explain why creating budgets and other financial planning is an important part of business planning."

Answers

Answer:

(a) the financial ratio will be calculated with the projections of the cash flow. This will help the company to determinate their liquidity needs and their other atios as to budget the cash flow, the company had to solve for their dividend plan (to solve for financing activities cashflow) this will allow to calcualte for dividend per share for example. Also, the budget solve for purchase and sale of long-term equipment this makes the company to plan ahead how it is going to finance this. It will allow to solve the long term debt to equity, the long term asset to equity among other.

Resuming the budgeting of the financial statement will allow the managers to check for the performance of the company if operations runs according to plan.

(b) the budget allow to forecast the future while it is certain that actual values will differ if it isn't working in the papper there are less chances of a good output in real-life thus, It is used to discard bad project and only actual realize thoseth good odds. Also, is a resource of control once the operation are concluded to look for deviancy. Whitout budgeting accounting there is no way to plant ahead the use of cash to the business requirement.

Explanation:

Read each of the following statements, and indicate whether each statement is true or false. Statement True False Firms raise capital from retained earnings only when they cannot issue new common stock due to market conditions outside of their control. In general, firms are reluctant to issue new common stock to raise additional financial capital due to the magnitude of the flotation costs and the negative signals sent to the marketplace. The flotation costs associated with the sale of debt securities are greater than those associated with new common stock issues.

Answers

Answer:

a. False

b. True

c. False

Explanation:

a. This is false because firms generally prefer to raise funds from Retained Earnings first before thinking of issuing shares. It is also up to them which method they want to use be it by stock issuance or by Retained Earnings but they usually gravitate towards retained earnings first.

b. Issuing new stock can have the effect of signalling to the market that you are cash strapped and this is not a good thing most times. It can lead to some investors losing faith in the company. Also the floatation costs associated will make the cost of raising funds via stock issuance higher so this is avoided and usually used in desperation.

c. The floatation costs associated with issuing New Stock are more than the ones associated with issuing debt securities. This is because New Stock issuance is bound by more stringent legal requirements and procedures that will require more costs to get through than debt issuance.

Rex Garner recently made an offer to Harry Barns for the sale of his shop using a registered letter. The offer says that Harry "may accept by registered letter." This detail is an example of a ________. Group of answer choices

Answers

Answer:

Stipulation.

Explanation:

In this scenario, Rex Garner recently made an offer to Harry Barns for the sale of his shop using a registered letter. The offer says that Harry "may accept by registered letter." This detail is an example of a stipulation.

A stipulation in business can be defined as a formal legal acknowledgment and agreement made between two or more groups of people (parties) before entering into a contract or business deal.

This ultimately implies that, a stipulation is a condition or clause used to convey agreement in a contract between two or more groups of people. The statement "may accept by registered letter." in the offer made by Rex Garner to Harry is a stipulation, conveying the message that Harry can only show agreement by using a registered letter as well.

The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September. Corporate headquarters building lease $78,300Cosmetics Department sales commissions--Northridge $3,850 Store Corporate legal office salaries $60,200 Store manager's salary-Northridge Store $19,500 Heating-Northridge Store $17,200 Cosmetics Department cost of sales-Northridge $33,100 Central warehouse lease cost $14.000 Store security-Northridge Store $18,200Cosmetics Department manager's salary-northridge Store $4,420 The Northedge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's What is the total amount of the costs listed above that are not direct costs of the Northridge Store?A. $152,500.B. $43,379.C. $78,300.D. $53,820.

Answers

Answer:

Total costs that are not a direct cost of Northridge store = $152,500 (A)

Explanation:

First of all, let us identify the transactions in the list that are not a direct transaction of the Northridge store, thereafter, we will calculate the total costs of these transactions.

Transaction                                                      Amount($)

Corporate headquarters building lease         78,300

Corporate legal office salaries                        60,200

Central warehouse lease cost                         14,000

Total                                                                   152,500

∴ Total costs that are not a direct cost of Northridge store = $152,500

If D1 = $1.25, g (dividend growth rate) = 4.7%, and P0 = $26.00, what is the stock’s expected dividend yield for the coming year

Answers

Answer:

9.51%

Explanation:

From the question above:

The dividend is $1.25

The growth rate is 4.7%

= 4.7/100

= 0.047

The stock price(PO) is $26.00

Therefore, stock's expected dividend for the coming year can be calculated as follows

PO= D1/Re-g

26= 1.25/(Re-0.047)

Cross multiply both sides

1.25= 26(Re-0.047)

1.25=26Re-1.222

1.25+1.222=26Re

2,472=26Re

Re= 2,472/26

Re= 0.0951×100

Re= 9.51%

Hence the stock's expected dividend for the coming year is 9.51%

1. What is the maturity value of P12,500 if it is invested at 15% simple interest for 250 days using ordinary interest?

Answers

Answer:

$13,784.25

Explanation:

Simple interest = P x R x T

(P12,500 x 15 × 250) / 100 × 365 = $1284.25

Value = $1284.25 + P12,500 = $13,784.25

I hope my answer helps you

Which sentence is grammatically correct?
A. We sent surveys to three West Coast companies; San Francisco Unlimited, San Jose Premier, and San Diego Logic.
B. We sent surveys to three west coast companies: San Francisco Unlimited, san jose premier, and San Diego Logic.
C. We sent surveys to three West Coast companies: San Francisco Unlimited, San Jose Premier, and San Diego Logic.

Answers

Answer:

C. We sent surveys to three West Coast companies: San Francisco Unlimited, San Jose Premier, and San Diego Logic.

Explanation:

Colon (:) is used before listing. It is a symbol in the English Language that is used before explanation in a sentence. It is also used to separate the hour and the minute when writing, among other uses.

The names of places in a sentence should start with capital letters as indicated in this chosen option. Capital letter is used in the beginning of a sentence or when writing names of places, people, or words related to people and places.

Leading economic indicators
Economists forecast future economic conditions by studying variables that tend to fluctuate in advance of the overall economy. The most significant of these variables are known as leading indicators, and they compose the index of leading economic indicators. Which of the following variables are measured as part of this index?
A. The interest rate spread
B. New applications for unemployment insurance
C. Hours worked by manufacturing workers
D. Stock prices
E. Supplier deliveries

Answers

Answer:

B. New applications for unemployment insurance

D. Stock prices

Explanation:

Unemployment benefits claims is one of the most powerful leading economic indicators, because it can predict, with a high degree of accuracy, the unemployment rate of the next economic periods.

Stock prices are also included in the index of leading economic indicators, more specifically, the Stock Prices of the S&P 500. Stock prices are a leading indicator because investors try to carefully invest in those companies they feel will have a good performance in both the short-term and the long-term.

At the price of the binding price floor, by how much would the quantity supplied change from the market equilibrium?

Answers

Answer: 32, 000 units

Explanation:

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