Answer:A) its stockholders' equity decreases by $10,000.
Explanation:
Account Debit Credit
Treasury stock $10,000
Cash $10,000
Calculation:
Stock = Shares x Price per share =1000 x $10 = $10,000
Therefore, the stockholders equity will decrease by $10000.
Hence the correct option is A.
Angel Corporation reported pretax book income of $1,006,000. During the current year, the net reserve for warranties increased by $25,900. In addition, tax depreciation exceeded book depreciation by $101,500. Finally, Angel subtracted a dividends received deduction of $26,200 in computing its current year taxable income. Angel's hypothetical tax expense in its reconciliation of its income tax expense is:
Answer:
$211,260
Explanation:
Calculation for Angel's hypothetical tax expense in its reconciliation of its income tax expense
Using this formula
Angel's hypothetical tax expense=Pretax book income × Tax rate
Let plug in the formula
Angel's hypothetical tax expense=$1,006,000×21%
Angel's hypothetical tax expense=$211,260
Therefore Angel's hypothetical tax expense in its reconciliation of its income tax expense will be $211,260
What is a example of good customer service?
Answer:
Jet blue= thanks frequent customers with small gesturer
Tesla= meet your customers where they r at
Suppose you make the decision to volunteer for an event in school for an hour this week. This means that you would have to take an hour off from your summer job, for which you earn $10 per hour. You spend $3 in bus fare in order to get to school and $5 for lunch. If you went to work, you would have been able to walk to your job, and lunch would have been provided to you by the office. The opportunity cost of volunteering is:
Answer:
$10 what you would have earned at the job
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
When you decide to volunteer, you would not be able to go to work. The opportunity cost of volunteering is what you would have earned if you were at work
A purposeful systematic process for collecting information on the important work related aspects of a job is called job description. TURE OR FALSE
Answer:
F
Explanation:
The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation: If Children's Division is dropped, half of the fixed costs above can be eliminated. What will be the effect on Grunge's profit next year if Children's Division is dropped instead of being kept? Select one: a. $50,000 increase b. $250,000 increase c. $250,000 decrease d. $550,000 increase
Question:
The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation:
Contribution margin.... 200,000
Fixed Expense.... 500,000
net operating loss..... (300,000)
If Children's Division is dropped, half of the fixed costs above can be eliminated. What will be the effect on Grunge's profit next year if Children's Division is dropped instead of being kept?
A) 50,000 increase
B) 250,000 increase
C)250,000 decrease
D) 550,000 increase
Answer:
Option A is correct
Increase in profit = $50,000
Explanation:
To determine whether or not it will be profitable to drop a loss making division, we compare the savings in fixed cost to the lost contribution from the division.
It is noteworthy that only the fixed cost attributed to division can only be saved should the division be shut down.
The analysis is done as follows:
$
Lost contribution (200,000 )
Savings in fixed cost (1/2× 500,000) 250,000
Net savings 50,000
Increase in profit = $50,000
In January, Stripe, Inc. purchased 50 shares of its own $10 par value common stock for $20 per share. In March, Stripe sold 10 shares at $25 per share. The journal entry to record the sale of treasury stock using the cost method would include a (debit/credit) Blank 1 of 2 to Treasury Stock in the amount of $ Blank 2 of 2.
Answer: credit; $200
Explanation:
The journal entry to record the sale of treasury stock using the cost method would include a credit to Treasury Stock in the amount of $200.
Using the cost method, the journal entry should reflect the sale of the stock at the original price it was purchased at ( its cost). With the original cost of purchase being $20, the 10 shares that were sold will be recorded as;
= 10 shares * $20
= $200
This will be credited to the Treasury account and along with the additional amount made on the sale, debited to the cash account to reflect a cash increase.
Assume that the Accumulated Depreciation account has an unadjusted normal balance of $120,000. The company's list of adjusting entries includes one that debits Depreciation Expense and credits the Accumulated Depreciation account for $20,000. The adjusted balance in the Accumulated Depreciation account is a:
Answer:
$140,000
Explanation:
The computation of adjusted balance in the Accumulated Depreciation account is shown below:-
adjusted balance in the Accumulated Depreciation account = unadjusted normal balance + Credit Accumulated Depreciation account
= $120,000 + $20,000
= $140,000
Hence the adjusted balance in the Accumulated Depreciation account is $140,000.
If your an executive chef of a supermarket, who might report to you? Who might you report to?
Answer:
Executive chefs will report to the head restaurateur. Sous chefs and line cooks report to executive chefs.
Peta Corporation and its subsidiary reported consolidated net income of $320,000 for the year ended December 31, 20X8. Peta owns 80 percent of the common shares of its subsidiary, acquired at book value. Noncontrolling interest was assigned income of $30,000 in the consolidated income statement for 20X8. What is the amount of separate operating income reported by Peta for the year
Answer: $170,000
Explanation:
Based on the information provided in the question, the amount of separate operating income that will be reported by Peta for the year goes thus:
The total income of subsidiary is calculated as:
= [30000/(100 - 80)] × 100
= (30000/20) × 100
= 1500 × 100
= 150000
Therefore, the operating income of Peta will be:
= Consolidated income - the total Subsidiary income
= $320000 - $150000
= $170000
The following transactions occurred during July: Received $970 cash for services provided to a customer during July. Received $3,400 cash investment from Bob Johnson, the owner of the business. Received $820 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $445. Borrowed $6,700 from the bank by signing a promissory note. Received $1,320 cash from a customer for services to be performed next year. What was the amount of revenue for July
Answer: $1,415
Explanation:
Going by the Accrual principle in Accounting, the revenue to be recognized has to be for services rendered in the period of interest regardless of it is in cash or on account.
The revenue transactions for the month of July therefore will be for only services rendered in July.
Those include;
Received $970 cash for services provided to a customer during July.Provided services to a customer on credit, $445The rest were either equity, liability or revenue for a period other than July.
Revenue for July is therefore;
= 970 + 445
= $1,415
four problems associated with money
Answer:
Hmm.
Explanation:
Problems making ends meet
Accumulating too much debt.
Making poor purchasing and investing decisions.
Being unable to enjoy money.
(Source; USATODAY.com)
5. Consider the supply chain involved when a customer orders a book from Amazon. Identify the
push/pull boundary and two process each in the push and pull phases.
Answer:
1. At pull stage Customers request for books. A pull system by Amazon was made through the use of ingram book group. They support booksellers in supply and demand of book buyers
2. The push strategy is made through the development of several warehouses. Procurement of inventory is done and peoples orders are sent out by utilizing pull strategy.
Processes in pull strategy:
1. Shipping
2. Order fulfilment
Processes in push strategy:
1. Stock replenishment
2. Production
The president of Nash Company is considering a proposal by the factory manager for the purchase of a machine for $72,500. The useful life would be eight years, with no residual scrap value. The use of the machine will produce a positive annual cash flow of $14,000 a year for eight years. An annuity table shows that the present value of $1 received annually for eight years and discounted at 10% is 5.335. The net present value of the proposal, discounted at 10%, is:___________A. ($3,868).B. $2,190.C. $3,868.D. Zero.
Answer:
B. $2,190
Explanation:
Calculation for the net present value of the proposal
Using this formula
Net present value=(Annual cash flow×Discounted present value)- Machine purchase amount
Let plug in the formula
Net present value=($14,000 ×5.335)-$72,500
Net present value=$74,690-$72,500
Net present value= $2,190
Therefore the Net present value will be $2,190
Below are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets are operating assets. All of Decker's current liabilities are operating liabilities.
Income Statement Current Projected
Sales na 1,500
Costs na 1,050
Profit before tax na 450
Taxes na 135
Net income na 315
Dividends na 95
Balance sheets Current Projected Current Projected
Current assets 100 115 Current liabilities 70 81
Net fixed assets 1,200 1,440 Long-term debt 300 360
Common stock 500 500
Retained earnings 430 650
Based on the projections, Decker will have:___________.
a.) a financing deficit of $36
b.) a financing surplus of $36
c.) a financing deficit of $255
d.) zero financing surplus or deficit
e.) a financing surplus of $255
Answer:
Decker Enterprises
Based on the projections, Decker will have:___________:
b.) a financing surplus of $36
Explanation:
a) Data and Calculations:
Income Statement Current Projected
Sales na 1,500
Costs na 1,050
Profit before tax na 450
Taxes na 135
Net income na 315
Dividends na 95
Balance sheets Current Projected Current Projected
Current assets 100 115 Current liabilities 70 81
Net fixed assets 1,200 1,440 Long-term debt 300 360
Common stock 500 500
Retained earnings 430 650
Total 1,300 1,555 Total 1,300 1,591
b) Financing surplus 36
c) Decker Enterprises does not need additional financing, but has excess financing because the Liabilities and Equity are greater than the assets.
g An accelerated depreciation method: Group of answer choices Results in reporting higher earnings every year. Depreciation an asset over a shorter life than does the straight-line method. Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years. Is required for assets that become technologically obsolete before they physically wear out.
Answer:
The correct answer is the third option: Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years.
Explanation:
To begin with, the name of "Accelerated Depreciation" is refered to a method used in the accouting fields in order to determine how much of a permanent asset has been worn out by the time that has passed and to put that amount in the accounts of the company so that there is a record of the money that has been lost for those depreciations. Moreover, in difference with the traditional method, this one uses a process in where the depreciation will be higher in the early years of the asset while in the latest will be less depreciation.
Ted Catering received $1,180 cash in advance from a customer for catering services to be provided in three months. Determine the general journal entry that Ted Catering will make to record the cash receipt. Assume the company’s policy is to initially record prepaid and unearned items in balance sheet accounts.
Answer:
Debit cash for $1,180
Credit unearned catering revenue for $1,180
Explanation:
Unearned revenue refers to the amount of money that is received in cash by a company for goods that are yet to be delivered or services that yet to be rendered.
The $1,180 advance payment received by Ted Catering is unearned catering revenue. The eneral journal entry that Ted Catering will make to record the cash receipt wil appear as follows:
Account title Dr ($) Cr ($)
Cash 1,180
Unearned catering revenue 1,180
(To record unearned catering revenue.)
Which order is correct for the marketing framework?
Answer:
5C's, STP, 4P's
Explanation:
The marketing framework is a template that has instructions for the carrying out of marketing plan. Such a framework enables you to deliver the correct content to the right people, by using the right channels, at an appropriate time to attain your important or core marketing goals.
The correct order is 5C's, STP, 4P's.
Thank you!
What is one way a person can use technology to automate a process that may be more efficient doing than manually
Answer:
Business process automation is the use of technology to execute recurring tasks or processes in a business where manual effort can be replaced. It is done to minimize costs, increase efficiency, and streamline processes.
Explanation:
hope this helps
Hoover Inc. has current assets of $350,000 and fixed plant assets of $650,000. Current liabilities are $100,000 and long-term liabilities are $250,000. There is $120,000 in preferred stock outstanding and the firm has issued 10,000 shares of common stock. Compute book value (net worth) per share $53.00. $75.00. $65.00. $84.00.
Answer:
$53.00
Explanation:
The computation of book value is shown below:-
But before that we need to determine the net asset which is
Net asset = Total asset - Total liabiliites
= ($350,000 + $650,000) - ($100,000 - $250,000)
= $1,000,000 - $350,000
= $650,000
Now
Value per share= (Net asset - preference share) ÷ number of common stocks
= ($650,000 - $120,000 ) ÷ 10,000 shares
= $530,000 ÷ 10,000
= $53 per share
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following resultsDEPENDENT VARIABLE: AVC R-SQUARE F-RATIO P-VALUE ON FOBSERVATIONS: 35 0.8713 108.3 0.0001VARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 43.40 13.80 3.14 0.0036Q -2.80 0.90 -3.11 0.0039Q2 0.20 0.05 4.00 0.0004What is the estimated equation for average variable cost (AVC)?What is the estimated equation for short-run marginal cost (SMC)?What is the estimated equation for total variable cost (TVC)?At what level of output is AVC at its minimum point for Straker Industries?If Straker Industries produces 20 units of output, what is its estimated TVC, AVC and SMC?
Answer:
Note: The organized table is attached as picture below
i. What is the estimated equation for average variable cost (AVC)?
Intercept value = 43.40, Parameter estimates of Q and Q2 = -2.80 & 0.20 respectively.
Hence, the estimated equation for AVC is:
AVC = 43.40 - 2.80Q + 0.20Q2
ii. What is the estimated equation for total variable cost (TVC)?
Similarly, the estimated equation for TVC is
= AVC * Q
= 43.40Q - 2.80Q2 + 0.20Q3
iii. At what level of output is AVC at its minimum point for Straker Industries?
AVC will attain its minimum value when its derivative is set = 0. This occurs when:
-2.80 = -0.40Q
Q = 7.
iv. What is the estimated equation for short-run marginal cost (SMC)?
SMC is the derivative of TVC, its estimated equation is given by:
= 43.40 - 5.60Q + 0.60Q2
iv. If Straker Industries produces 20 units of output, what is its estimated TVC, AVC and SMC?
TVC = 43.40Q - 2.80Q^2 + 0.20Q^3
TVC = 43.40(20) - 2.80(20)^2 + 0.20(20)^3
TVC = 868 - 1120 + 1600
TVC = 1348
At 20 unit of output, its estimated TVC is 1348
AVC = 43.40 - 2.80Q + 0.20Q^2
AVC = 43.40 - 2.80(20) + 0.20(20)^2
AVC = 43.40 - 56 + 80
AVC = 67.4
At 20 unit of output, its estimated AVC is 67.4
SMC = 43.40 - 5.60Q + 0.60Q^2
SMC = 43.40 - 5.60(20) + 0.60(20)^2
SMC = 43.40 - 112 + 240
SMC = 171.4
At 20 unit of output, its estimated SMC is 171.4.
The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 14,500 Current assets $ 12,000 Debt $ 16,500 Costs 8,400 Fixed assets 29,000 Equity 24,500 Taxable income $ 6,100 Total $ 41,000 Total $ 41,000 Taxes (40%) 2,440 Net income $ 3,660 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %
Answer:
0.1046 or 10.46%
Explanation:
The computation of the sustainable growth rate is shown below:
The Sustainable growth rate of the firm is
= Return on Equity × ( 1 - Dividend Payout Ratio )
where,
Dividend Payout Ratio = 30%
And,
Return on equity is
= Net Income ÷ Shareholder 's equity
= $3660 ÷ $ 24,500
= 0.14938
So,
Sustainable growth rate is
= 0.14938 × (1 - 30%)
= 0.1046 or 10.46%
Storm Concert Promotions Valle Home Builders Actual indirect materials costs$12,400 $7,000 Actual indirect labor costs 55,900 46,900 Other overhead costs 16,000 48,900 Overhead applied 91,600 98,300 Storm Concert Promotions Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Valle Home Builders Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
Answer and Explanation:
Storm Concert Promotions
The computation of overhead is shown below:-
Factory Overhead-Storm
Indirect materials $12,400 Applied overhead 91,600
Indirect Labor $55,900
Other overhead
costs $16,000
Overapplied overhead $7,300
The Journal entry is shown below:-
Factory overhead Dr, $ 7,300
To Cost of goods sold $7,300
(Being cost of goods sold is recorded)
Valle Home Builders
The computation of overhead is shown below:-
Factory Overhead-Value home builders
Indirect materials $7,000 Applied overhead 98,300
Indirect Labor $46,900
Other overhead
costs $48,900
Overapplied overhead $4,500
Factory overhead Dr, $ 4,500
To Cost of goods sold $4,500
(Being cost of goods sold is recorded)
Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: Material $5 Labor 3 Overhead 2 $10 Beginning inventory at these costs on July 1 was 11,500 units. From July 1 to December 1, Convex produced 26,000 units. These units had a material cost of $7 per unit. The costs for labor and overhead were the same. Convex uses FIFO inventory accounting. a. Assuming that Convex sold 28,000 units during the last six months of the year at $14 each, what would gross profit be?
Answer:
Gross profit= $79,000
Explanation:
Giving the following information:
July 1, 20X1:
Material $5
Labor 3
Overhead 2
Total= $10
Beginning inventory at these costs on July 1 was 11,500 units.
From July 1 to December 1, Convex produced 26,000 units.
These units had a material cost of $7 per unit.
First, we need to determine the cost of goods sold. Under the FIFO (first-in, first-out) method, the COGS is calculated using the cost of the first units produces.
COGS= 11,500*10 + 16,500*12= $313,000
Now, we can calculate the gross profit:
Gross profit= sales - cogs
Gross profit= 28,000*14 - 313,000
Gross profit= $79,000
The Balance Sheets at the end of each of the first two years of operations indicate the following: 2006 2005 Total current assets $600,000 $560,000 Total investments 60,000 40,000 Total property, plant, and equipment 900,000 700,000 Total current liabilities 150,000 80,000 Total long-term liabilities 350,000 250,000 Preferred 9% stock, $100 par 100,000 100,000 Common stock, $10 par 600,000 600,000 Paid-in-Capital in excess of par-common stock 60,000 60,000 Retained earnings 325,000 210,000 If Net Income is $115,000 and interest expense is $30,000 for 2006, what is the return on total assets for 2006 (round percent to one decimal place)
Answer:
Return on Assets (2006) = 7.60 %
Explanation:
Return on Assets = Earnings Before Interest and Tax ÷ Total Assets
Therefore,
Return on Assets (2006) = ($115,000 + $30,000) / ( $600,000 + $60,000 + $900,000) × 100
= $118,000 / $1,560,000 × 100
= 7.60 % (one decimal place)
How is the change in cash classified on the statement of cash flows?
a. It is found in the investing activities section of the statement.
b. It is found in the operating activities section of the statement.
c. It is found in the financing activities section of the statement.
d. It is the sum of the investing, operating, and financing activities sections.
Answer:
d. It is the sum of the investing, operating, and financing activities sections.
Explanation:
Change in cash classified on the statement of cash flows is derived by the sum of the Investing cash flow activities + Operating cash flow activities Financing cash flow activities. The balance gotten is known as Net cash flow for the particular period.
Financing that individuals or institutions have provided to a corporation is: Multiple Choice always classified as a liability. classified as a liability when provided by creditors and as stockholders' equity when provided by owners. always classified as equity. classified as a stockholders' equity when provided by creditors and a liability when provided by owners.
Answer:
classified as a liability when provided by creditors and as stockholders' equity when provided by owners
Explanation:
Corporate finance can be explained as how the revenue, asset as well as is been taken care of in business. The financing could be by individual or institution.
It should be noted that Financing that individuals or institutions have provided to a corporation is classified as a liability when provided by creditors and as stockholders' equity when provided by owners
why is manufacturing becoming more competitive
Presented below are three transactions. Mark each transaction as affecting owner's investment (I), owner's drawings (D), revenue (R), expense (E), or not affecting owner's equity (NOE). ________(a) Received cash for services performed ________(b) Paid cash to purchase equipment ________(c) Paid employee salaries g
Answer:
a. revenue (R), affecting owner's investment (I)
b. not affecting owner's equity (NOE)
c. expense (E) and affecting owner's investment (I)
Explanation:
Revenues and Expense form Profits which are included in the statement of changes in equity through the Retained Income line item, thus these two also affect owners investment.
Assume that your aunt sold her house on December 31, and to help close the sale she took a second mortgage in the amount of $10,000 as part of the payment. The mortgage has a quoted (or nominal) interest rate of 12%; it calls for payments every 6 months, beginning on June 30, and is to be amortized over 10 years. Now, 1 year later, your aunt must inform the IRS and the person who bought the house about the interest that was included in the two payments made during the year. (This interest will be income to your aunt and a deduction to the buyer of the house.) To the closest cent, what is the total amount of interest that was paid during the first year
Answer:
Total interest paid during the first year: $1,183.69
Explanation:
First, we need to know the installment amount:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV 10,000.00
time 20
rate 0.06
[tex]10000 \div \frac{1-(1+0.06)^{-20} }{0.06} = C\\[/tex]
C $ 871.85
now we calcualte the interest and amortization made in the first payment:
interest: 10,000 x 6% = 600
Amortization 871,85 - 600 = 271,85
Principal at second installment:
10,000 - 271.85 = 9,728.15
Interest 9,728.15 x 0.06 = 583,69
Total interest: 583,69 + 600 = 1.183,69
The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company’s fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,200; cost of goods sold, $1,440; selling expense, $215; general and administrative expense, $205; interest expense, $45; and gain on sale of investments, $85. Income tax expense has not yet been recorded. The income tax rate is 25%. Assume the company’s accountant prepared a multiple-step income statement. a. What amount would appear in that statement for operating income? b. What amount would appear in that statement for nonoperating income?
Answer:
A. $340 million
B. $40 million
Explanation:
A. Calculation for the amount that would appear in that statement for operating income
Sales revenue $2,200
Less: Cost of goods sold ($1,440)
Selling expense ($215)
General and administrative expense ($205)
Operating income $340 million
Therefore the amount that would appear in that statement for operating income will be $340 million
B. Calculation for the amount that would appear in that statement for non operating income
Interest expense $45
Less Gain on sale of investments $85
Non-operating income $40 million
Therefore the amount that would appear in that statement for nonoperating income will be $40 million