Answer:Sheridan should record a liability at December 31, 2020 for accrued salaries of =d. $157200
Explanation:
Since there are 5 workdays in a week
we consider First, Workdays Biweekly (Two weeks)
= 5 work days per week X 2 = 10 days
then the Remaining work days in 2020 for December 29,30 and 31 = 3 days
Accrued salaries = Recurring biweekly salaries/10 days X 3 days + Overtime pay earned in the 2-week period ended 12/26/20
$444,000/10 days x 3 days + $24000
$133,200 +$24000
= $157,200
Prepare an answer sheet with the column headings that follow. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category.
Assest Liaabilities Net income
a. Recorded $200 Accumulated Depreciation
of depreciation Depreciation Expense
expense. -200 -200
a. Recorded $200 of depreciation expense.
b. Sold land that had originally cost $9,000 for $12,000 in cash.
c. Acquired a new machine under a financing lease.
d. The present value of future lease payments, discounted at 11%, was $11,000. Recorded the first annual payment of $2,500 for the leased machine (in part c).
e. Recorded a $6,600 payment for the cost of developing and registering a trademark. Recognized periodic amortization for the trademark (in part e) using a 40-year useful life. Sold used production equipment for $16,000 in cash.
f. The equipment originally cost $44,000, and the accumulated depreciation account has an unadjusted balance of $23,400.
g. It was determined that a $1,300 year-to-date depreciation entry must be recorded before the sale transaction can be recorded. Record the adjustment and the sale.
Answer:
Accounts Assets Liabilities Net income
a. Depreciation Expense -$200 -$200
b. Land / Cash -$9,000 + $12,000 + $3,000
c. Equipment/Lease Liability +$11,000 +$11,000
d. Cash /Lease Liability -$2,500 -$2,500
e. Cash /Trademark -$6,600 + $6,600
Amortization Expense -$165
f. & g. Cash /Equipment +$16,000 -$19,300 -$3,300
Explanation:
b. The land was sold with a gain of $3,000 ($12,000 - 9,000)
e. The trademark's amortization expense = $6,600/40 = $165 per year.
f and g. The Accounts involved are:
1. Cash +$16,000 for the sale.
2. Equipment has a debit balance of $44,000 and a credit balance of $23,400 plus Depreciation expense of $1,300. These give a net balance of $19,300. The equipment was sold for $16,000, recording a loss of $3,300.
3. Loss from sale of equipment = $3,300 as determined above.
Ballou Corporation declared a cash dividend on December 13, 2018, payable on January 10, 2019. By mistake, the company failed to make a journal entry in December 2018. The effect of this error on the financial statements as of December 31, 2018 were:_____.
a. retained earnings was overstated and liabilities were understated.
b. retained earnings was overstated and cash were understated.
c. retained earnings and liabilities were both understated.
d. retained earnings and liabilities were both overstated.
Answer: a. retained earnings was overstated and liabilities were understated.
Explanation:
Dividends are paid from the Retained Earnings so when a company announces a dividend, that dividend is to be deducted from the Retained earnings. As this was not done, the Retained earnings at year end are overstated.
As the dividends are not paid immediately, they become liabilities. With the relevant entries not made, the dividends were not recorded as liabilities which makes liabilities understated.
How is government in the United States today different from government in ancient Athens? O The United States is a direct democracy. The United States allows citizens to vote. The United States is a republic. O The United States has a unicameral legislature.
Answer:
C - The United States is a republic.
Explanation:
I got it right on edge
The government in the United States is different from the government in ancient Athens because the United States government is a republic. Therefore, the option C holds true.
What is the significance of a republic governance?A governance that follows the ideologies and principles of a republic government is the society where republic governance is said to be existing. The President is the most supreme authority in a republic governance.
All the characteristics given above are common between the government of the United States and the government of ancient Athens, except for one difference, which is the republic governance being carried in the government of the United States of America at present.
Therefore, the option C holds true and states regarding the significance of a republic governance.
Learn more about a republic governance here:
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Chance company had two operating divisions, one manufacturing farm equipment and other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on Sept. 1, 2016, the company adopted a plan to sell the assets of the division.
The actual sale was completed on Dec. 15, 2016, at the price of $600,000. The book value of the division's assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. The division incurred a before-tax operating loss from operations of $130,000 from the beginning of the year through Dec. 15. The income tax rate is 40%. Chances after-tax income from its continuing operations is $350,000.
Required:
Prepare an income statement for 2016 beginning with income from continuing operations. Include appropriate EPS disclosures assuming that 100,000 shares of common stock were outstanding throughout the year.
Answer:
Chance Company
Income Statement
For the Year Ended December 31, 2016
After tax income from continuing operations $350,000
Discontinued operations:
Operating income ($130,000 )
Loss on disposal ($400,000)
Income tax on discontinued operations $212,000
Income from discontinued operations ($318,000 )
Net income $32,000
Earnings per share (100,000 outstanding shares) $0.32
The rule of 70 indicates that a 6% annual increase in the level of real GDP would lead to the output doubling in approximately _____ years.
Answer:
11.67
Explanation:
the time it would take real GDP to double = 70 / growth rate of real GDP = 70 / 6 = 11.67 years
One year ago, Tyler Stasney founded Swift Classified Ads. Stasney remembers that you took an accounting course while in college and comes to you for advice. He wishes to know how much net income his business earned during the past year in order to decide whether to keep the company going. His accounting records consist of the T-accounts from his ledger, which were prepared by an accountant who moved to another city. The ledger at December 31 follows. The accounts have not been adjusted. Stasney indicates that at year-end, customers owe him $1,600 for accrued service revenue. These revenues have not been recorded. During the year, Stasney collected $4,000 service revenue in advance from customers, but he earned only $900 of that amount. Rent expense for the year was $2,400, and he used up $1,700 of the supplies. Stasney determines that depreciation on his equipment was $5,000 for the year. At December 31, he owes his employee $1,200 accrued salary.
Answer:
net income = $33,900
Explanation:
The T-accounts are missing, so I looked for a similar question:
Stasney indicates that at year-end, customers owe him $1,600 for accrued service revenue. These revenues have not been recorded.
Dr Accounts receivable 1,600
Cr Service revenue 1,600
During the year, Stasney collected $4,000 service revenue in advance from customers, but he earned only $900 of that amount.
Dr Unearned revenue 900
Cr Service revenue 900
Rent expense for the year was $2,400, and he used up $1,700 of the supplies.
Dr Rent expense 2,400
Cr Prepaid rent 2,400
Dr Supplies expense 1,700
Cr Supplies 1,700
Stasney determines that depreciation on his equipment was $5,000 for the year.
Dr Depreciation expense 5,000
Cr Accumulated depreciation 5,000
At December 31, he owes his employee $1,200 accrued salary.
Dr Wages expense 1,200
Cr Wages payable 1,200
Total expense for the year = $17,000 (paid wages) + $1,200 (accrued wages) + $800 (utilities) + $2,400 (rent) + $1,700 (supplies) + $5,000 (depreciation) = $28,100
total revenues = $59,500 (previously recorded) + $1,600 (unrecorded service revenue) + $900 (accrued service revenue) = $62,000
net income = $62,000 - $28,100 = $33,900
Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
A. The equipment was purchased on account for $25,000. Credit terms were 2/10, n/30. Payment was made within the discount period and the company records the purchases of equipment net of discounts.
B. Connors gave the seller a noninterest-bearing note. The note required payment of $27,000 one year from date of purchase. The fair value of the equipment is not determinable. An interest rate of 10% properly reflects the time value of money in this situation.
C. Connors traded in old equipment that had a book value of $6,000 (original cost of $14,000 and accumulated depreciation of $8,000) and paid cash of $22,000. The old equipment had a fair value of $2,500 on the date of the exchange. The exchange has commercial substance.
D. Connors issued 1,000 shares of its nopar common stock in exchange for the equipment. The market value of the common stock was not determinable. The equipment could have been purchased for $24,000 in cash.
Required:
For each of the above situations, prepare the journal entry required to record the acquisition of the equipment.
Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
Journal Entries
Debit Credit
A. The equipment was purchased on account for $25,000.
Equipment $25,000
Accounts Payable $25,000
B. Connors gave the seller a noninterest-bearing note. The note required payment of (27,000 x 1/(1+10%)
Equipment $24,545
Discount on Notes Payable $2,455
Note Payable $27,000
C. Connors traded in old equipment that had a book value of $6,000
Equipment New $24,500
Accumulated Depreciation $8,000
Loss on Equipment $3,500
Cash $22,000
Equipment Old $14,000
D.Connors issued 1,000 shares of its nopar common stock in exchange for the equipment
Equipment $24,000
Common Stock $24,000
________ is used to make purchases while ________ is the total collection of pieces of property that serve to store value.
Answer:
Money; wealth.
Explanation:
Money can be defined as any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.
Basically, money is a currency used for the purchase of goods and services such as food, clothes, perfume, shoes, automobile etc.
Hence, money is used to make purchases while wealth is the total collection of pieces of property that serve to store value. This simply means, wealth refers to the total or overall assets that is being owned by an individual or organization at a specific period of time.
An individual has $2000 in physical assets, and $600 in cash initially. This person faces the following loss distribution to the wealth. Full insurance is available at $600
Probability Loss
0.5 0
0.1 200
0.2 400
0.1 1000
0.1 2000
The Individual can also buy partial insurance with i. a $200 deductible, or ii. 75% coinsurance, or iii. Upper limit on coverage, with the limit being $1000. The premium on each partial coverage policy is $450.
Required:
Provide a ranking of the four types of policies for the individual, in terms of preference if the preference function is given by U(FW) = LN(1+FW), where FW is final wealth of the individual.
Answer with Explanation:
Probability Expected Loss Loss Forecast
0.5 0 0
0.1 200 20
0.2 400 80
0.1 1000 100
0.1 2000 200
1.00 Total 400
Now,
A. Final Wealth with no Insurance = Physical Assets of the person + Cash Assets - Total Loss Forecast
By putting values, we have:
Final Wealth with no Insurance = $2,000 + $600 - $400 = $2,200
B. For Full insurance, we will not consider expected loss because we will receive Insurance Premium instead:
Final Wealth with Full Insurance = Physical Assets + Cash Assets - Insurance Premium
By putting values, we have:
Final Wealth with Full Insurance = $2,000 + $600 - $600 = $2,000
C. Final Wealth with Partial Insurance and $200 deductibles = Physical Assets + Cash Assets - Insurance Premium For Partial Coverage - Deductible
By putting values, we have:
Final Wealth with Partial Insurance and $200 deductibles = $2,000 + $600 - $450 - $200 = $1,950
D. Final Wealth with 75% Co-insurance = Physical Assets + Cash Assets - Insurance Premium - Co-payment
By putting values, we have:
Final Wealth with 75% Co-Insurance = $2,000 + $600 - $450 - (75% * $400)
= $1,850
E. Final Wealth with Partial Insurance and $1,000 Upper Limit = Physical Assets + Cash Assets - Insurance Premium - Maximum Loss Expected
By putting values, we have:
= $2,000 + $600 - $450 - (Probability 0.1 * $2,000) = $1950
From the above, we can say that the best option here in descending order is as under:
1. A. Final Wealth with no Insurance
2. B. With Full insurance
3. C. Final Wealth with Partial Insurance and $200 deductibles & E. Final Wealth with Partial Insurance and $1,000 Upper Limit
4. E. Final Wealth with Partial Insurance and $1,000 Upper Limit
Kirkwood acquires 100 percent of the outstanding voting shares of Soufflot Company on January 1, 2018. To obtain these shares, Kirkwood pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Kirkwood's stock had a fair value of $36 per share on that date. Kirkwood also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid by Kirkwood in stock issuance costs.
The book values for both Kirkwood and Souflout as of January 1, 2018 follow. The fair value of each of Kirkwood and Soufflot accounts is also included. In addition, Soufflot holds a fully amortized trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Any related question also is in thousands.
Kirkwood Inc Book Value Fair Value
Cash 900 80 80
Receivables 480 180 160
Inventory 660 260 300
Land 300 120 130
Buildings (net) 1,200 220 280
Equipment 360 100 75
Accounts payable 480 60 60
Long-term liabilities 1,140 340 300
Common stock 1,000 80
Additional paid-in capital 200 0
Retained earnings 1,080 480
Required:
What amount will be reported for consolidated cash after the acquisition is completed?
Answer:
$555,000
Explanation:
Calculation for the amount that will be reported for consolidated cash after the acquisition is completed
Cash at Kirkwood Inc $475,000
(900-400-15-10)
Add Cash at Soufflot Company $80,000
Consolidated cash after acquisition is completed $555,000
Therefore the amount that will be reported for consolidated cash after the acquisition is completed will be $555,000
Match the qualitative characteristics below with the following statements.1. Timeliness2. Completeness3. Free from error4. Understandability5. Faithful representation6. Relevance7. Neutrality8. Confirmatory valuea. Quality of information that assures users that information represents the economic phenomena that it purports to represent.b. Information about an economic phenomenon that corrects past or present expectations based on previous evaluations.c. The extent to which information is accurate in representing the economic substance of a transaction.d. Includes all the information that is necessary for a faithful representation of the economic phenomena that it purports to represent.e. Quality of information that allows users to comprehend its meaning.
Answer:
1. Comparability.
2. Predictive value.
3. Free from error.
4. Completeness.
5. Faithful representation.
Explanation:
a. Comparability: Quality of information that assures users that information represents the economic phenomena that it purports to represent.
b. Predictive value: Information about an economic phenomenon that corrects past or present expectations based on previous evaluations.
c. Free from error: The extent to which information is accurate in representing the economic substance of a transaction.
d. Completeness: Includes all the information that is necessary for a faithful representation of the economic phenomena that it purports to represent.
e. Faithful representation: Quality of information that allows users to comprehend its meaning
coomer co had net sales of 600000 net income of 35260 and average total assets of 680000 what is the return on total assets
Answer:Return on Total assets ==5.19%
Explanation:
Return on Total assets shows one the idea of the profitability of a company's assets in generating revenue before interest and taxes. it is expressed in percentage and its formula is given as
Return on Assets = Net Income (Earning before interest and taxes) / Average total assets
= 35,260/ 680,000 = 0.05185 x 100
=5.19%
Answer:
coomer heehee
Explanation:
Luke offered to sell his farm to Kent at $75,000, an offer which Kent declined. A week later, Luke offered to sell the farm for $65,000, stating that it was the final offer, it was valid for one month, and that he would not alter it. Two days later, Kent replied by saying that he was willing to pay $60,000 for the farm. A week after Luke received Kent's offer, Luke declined it. Ten days after that, Kent agreed to buy the farm for $65,000, but Luke refused to sell the farm. Kent decided to sue Luke for a breach of contract. The judge ruled in favor of Luke. Which one of the following is the reason for the ruling in Luke's favor?
a. Luke's original offer of $75,000 is still valid, even though rejected.
b. Kent acted in an incompetent manner with regards to the offer.
c. Kent's acceptance was past the set time period in the offer.
d. Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid.
Answer:
Option D
Explanation:
Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid
Reason- Whenever a counteroffer is made, it voids the earlier offers That's because real estate laws in all 50 states say that a seller who makes a written counteroffer automatically renders the buyer's original offer null and void.
Joni Splish Brothers Inc. has the following amounts reported in its general ledger at the end of the current year.
Organization costs $23,800
Trademarks 15,700
Discount on bonds payable 36,800
Deposits with advertising agency for ads to promote goodwill of company 11,800
Excess of cost over fair value of net identifiable assets of acquired subsidiary 76,800
Cost of equipment acquired for research and development projects; the equipment has an alternative future use 86,800
Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years 82,600
Required:
On the basis of this information, compute the total amount to be reported by Hyde for intangible assets on its balance sheet at year-end.
Answer:
$92,500
Explanation:
The computation of the total intangible asset is shown below:
= Trademarks + Excess of cost over fair value of net identifiable assets of acquired subsidiary
= $15,700 + $76,800
= $92,500
Hence, the total intangible asset is $92,500 and the same is to be considered
We simply applied the above formula
The following information pertains to Windsor Solar Panels, Inc.
July 1 Sold $128,000 of solar panels to Wildhorse Company with terms 3/15, n/30. Windsor uses the gross method to record cash discounts. Windsor estimates allowances of $1,500 will be honored on this sale.
12 Sold $82,000 of solar panels to Novak Corp. with terms of 4/10, n/60. Windsor expects no allowances related to this sale.
18 Novak Corp. paid Windsor for its July 12 purchase.
20 Wildhorse calls to indicate that the panels purchased on July 1 work well, but the color is not quite right. Windsor grants a credit of $2,100 as compensation.
29 Wildhorse Company paid Windsor for its July 1 purchase.
31 Windsor expects allowances of $5,340 to be grated in the future related to solar panel sales in July.
Prepare the necessary journal entries for Larkspur. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
Date Account Titles and Explanation Credit Debit
July 18
Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
July 1 Sold $128,000 of solar panels
Dr Receivables 128,000
Cr Sales 128,000
12 Sold $82,000 of solar panels
Dr Receivables 82,000
Cr Sales 82,000
18 Novak Corp. paid Windsor for its July 12 purchase.
Dr Cash 78,720
Dr Discount allowed 3280
Cr Receivables 82,000
Windsor grants a credit of $2,100 as compensation.
Dr compensation expense 2,100
Cr cash 2,100
29 Wildhorse Company paid Windsor for its July 1 purchase.
Dr Cash 128,000
Cr Receivables 128,000
31 Windsor expects allowances of $5,340 to be grated in the future
Dr Bad debt expense 5,340
Cr Allowance for bad debt 5,340
A company had a tractor destroyed by fire. The tractor originally cost $141,000 with accumulated depreciation of $74,400. The proceeds from the insurance company were $36,000. The company should recognize:
Answer:
The correct answer is "$30,600". The further explanation is given below.
Explanation:
The given values are:
Tractor's cost
= $141,000
Accumulated depreciation
= $74,400
Now,
The book value on sale's date will be:
= [tex]Cost-Accumulated \ depreciation[/tex]
= [tex]141,000-74400[/tex]
= [tex]66,600[/tex] ($)
The Loss on sale is:
= [tex]66,600-36,000[/tex]
= [tex]30,600[/tex]
The adjusted trial balance of Windsor, Inc. shows these data pertaining to sales at the end of its fiscal year, October 31, 2022: Sales Revenue $908,100; Freight-Out $13,400; Sales Returns and Allowances $19,800; and Sales Discounts $14,500.
Required:
Prepare the sales section of the income statement.
Answer
Windsor, Inc
Income Statement (Partial)
For the year October 31, 2022
Revenue
Sales $908,100
Less: Sales return and allowance $19,800
Sales Discount $14,500
$34,300
Net Sales $837,800
Appendix 1: Gross and net methods for sales discounts
The following were selected from among the transactions completed by Strong Retail Group during August of the current year:
Aug. 5. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, n/30. The
cost of the merchandise sold was $4,200.
9. Sold merchandise on account to R. Busch., $4,000, terms 1/10, n/30. The
cost of the merchandise sold was $2,100.
15. Received payment on account for the sale of August 5 less the discount.
20. Sold merchandise on account to S. Mooney, $6,000, terms n/eom. The
cost of the merchandise sold was $3,300.
25. Received payment on account for the sale of August 9. 31.Received
payment on account for the sale of August 20.
A. Journalize the August transactions using the gross method of recording sales discounts.
Aug. 5 Accounts Receivable-M. Quinn 7,500
Sales 7,500
Cost of Goods Sold 4,200
Inventory 4,200
Accounts Receivable-R. Busch 4,000
Sales 4,000
Cost of Goods Sold 2,100
B. Journalize the August transactions using the net method of recording sales discounts.
Answer: Check attachment
Explanation:
A . Journalize the August transactions using the gross method of recording sales discounts
Kindly check the attachment for the solution.
B. Journalize the August transactions using the net method of recording sales discounts.
Check attachment.
Read the following sentences, and identify the error.
a. Paolo recruited job applicants for the company that showed promise.
The error in this sentence is a:_________ .
b. We will be visiting our accounts in California, Oregon, and visiting our accounts in Washington.
The error in this sentence is a:________ .
Before you decide whether to use passive or active voice, you should consider the purpose of your message and the nature of the situation. Read the scenario, and then fill in the blanks.
You work for a printing company, and you realize that your colleague sent incorrect price quotes to a client. You begin to write an e-mail to the client to apologize for the mistake. You want to remedy the situation without criticizing your colleague. The sentence excerpted from the e-mail uses ______________ voice. Given the purpose of your message, this voice ___________ appropriate.
Answer:
a. Paolo recruited job applicants for the company that showed promise.
The error in this sentence is a: AMBIGUITY.
Who showed promise? The company or the job applicants? This sentence is not specific and you really cannot tell whether the job applicants or the company showed promise.
b. We will be visiting our accounts in California, Oregon, and visiting our accounts in Washington.
The error in this sentence is a: LACK OF PARALLELISM.
In order to show parallelism you should include the dates of the visits, since you cannot visit all 3 states in the same day and do your work properly.You work for a printing company, and you realize that your colleague sent incorrect price quotes to a client. You begin to write an e-mail to the client to apologize for the mistake. You want to remedy the situation without criticizing your colleague.
The sentence is missing, so I looked for a similar question:
"Bill made an error when he was processing your invoice."
The sentence excerpted from the e-mail uses ACTIVE voice. Given the purpose of your message, this voice IS NOT appropriate.
The whole purpose of this message is to solve a problem without criticizing Bill, but by using active voice, you are directly criticizing him.Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level.
Units Produced Total Cost
March 10,029 $16,724
April 8,765 15,312
May 10,480 17,492
June 8,600 14,860
July 9,293 15,781
Required:
a. Compute the variable cost per unit using the high-low method.
b. Compute the fixed cost elements using the high-low method.
c. Estimate the total cost if the company produces 8,170 units.
Answer & Explanation:
a. Using the high-low method, Variable cost per unit is;
[tex]= \frac{Highest Variable Cost - Lowest Variable Cost}{Highest number of units - Lowest number of Units} \\\\= \frac{17,492 - 14,860}{10,480 - 8,600} \\\\= $1.40[/tex]
= $1.40
b. Fixed Cost
= Total Cost at lowest unit - Variable costs at lowest unit
= 14,860 - (1.4 * 8,600)
= $2,820
c. Variable cost at 8,170 units + Fixed cost
= (8,170 * 1.4) + 2,820
= $14,258
The Pritzker Music Pavilion in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue that hosts live concerts attended by over half a million patrons a year. A group of local organizers, led by a prominent local businesswoman, would like to use the pavilion for a concert to benefit a non-profit, national network of investors and environmental organizations working with companies and investors to address sustainability challenges such as global climate change. If the pavilion management agrees to host the concert, the organizers will donate all profits to Ceres (or absorb any losses).
Based on the following revenue and cost information, the organizers would like answers to several questions.
1. There are three sources of revenue for the concert:
2. Tickets will be sold for $15.50 each.
3. A large multinational corporation headquartered in Chicago will donate $2.00 per ticket sold.
4. Each concert attendee is expected to spend an average of $17.00 for parking, food, and merchandise.
5. On the expense side, there are also three components:
A popular national group has agreed to perform at the concert. Normally, the group demands a significant fixed fee to perform, but to reduce the risk for the organizers, the group has agreed to perform for $6.00 per ticket sold. The organizers will pay several companies to operate the parking, food, and merchandise concessions. They will pay $21,000 plus 15% of all parking, food, and merchandise revenue. The organizers will pay the pavilion $85,000 plus $7.00 per person attending to cover its operating expenses (production, maintenance, advertising, etc.)
Required:
a. What is the estimated contribution margin per ticket sold for the benefit concert?
b. What are the estimated total fixed costs for the benefit concert?
c. What is the estimated profit from the benefit concert if 10,500 tickets are sold?
d. How many tickets must be sold in order for concert profit to be $100,000?
e. Assuming a tax rate of 31% on profits from the concert, what must dollar ticket sales be in order for after-tax concert profits to be $100,000?
f. Assume that the organizers can negotiate the fixed payment for the pavilion's operating expenses. If the organizers expect to sell 10,500 tickets, how much can they afford to pay and still earn a profit of $100,000 (ignore taxes)?
Answer:
a. What is the estimated contribution margin per ticket sold for the benefit concert?
contribution margin per ticket = ($15.50 + $2 + $17) - ($6 + $2.55 + $7) = $34.50 - $15.55 = $18.95
b. What are the estimated total fixed costs for the benefit concert?
total fixed costs = $21,000 + $85,000 = $106,000
c. What is the estimated profit from the benefit concert if 10,500 tickets are sold?
estimated profit = (10,500 x $18.95) - $106,000 = $92,975
d. How many tickets must be sold in order for concert profit to be $100,000?
number of tickets sold = ($106,000 + $100,000) / $18.95 = 10,870.71 ≈ 10,871 tickets sold
e. Assuming a tax rate of 31% on profits from the concert, what must dollar ticket sales be in order for after-tax concert profits to be $100,000?
$100,000 / (1 - 31%) = $144,927.54
number of tickets sold = ($106,000 + $144,927.54) / $18.95 = 13,241.56 ≈ 13,241.56 tickets sold
f. Assume that the organizers can negotiate the fixed payment for the pavilion's operating expenses. If the organizers expect to sell 10,500 tickets, how much can they afford to pay and still earn a profit of $100,000 (ignore taxes)?
contribution margin increases to $18.95 + $7 = $25.95
10,500 = ($21,000 + $100,000 + ?) / $25.95
$272,475 = $121,000 + ?
? = $151,475
you can pay up to $151,475 in fixed expenses to the pavilion
Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work Tom does. If he works 40 hours each week, the company's EBIT will be $615,000 per year; if he works a 50 hour week, the company's EBIT will be $755,000 per year. The company is currently worth $3.85 million. The company needs a cash infusion of $1.95 million, and it can issue equity or issue debt with an interest rate of 7 percent. Assume there are no corporate taxes.
What are the cash flows to Tom under each scenario?
Answer:
Scenario 1: debt is issued
interest expense = $1,950,000 x 7% = $136,500
amount of hours EBIT Net income (all for Tom)
Tom works
40 $615,000 $478,500
50 $755,000 $618,500
Scenario 2: equity is issued
amount of hours Net income Tom's share
Tom works ($3.85 / $5.8 = 66.38%)
40 $615,000 $408,237
50 $755,000 $501,169
Which of the following best defines a financial intermediary? a claim by a buyer to a future payment by a seller a collection of stocks and bonds issued to investors a financial institution that transforms investor funds into financial assets an asset sold by a company which entitles the buyer to partial ownership
Answer:
Option C (A financial.......assets) is the correct choice.
Explanation:
A financial intermediary seems to be an entity that serves as an intermediary seen between the listing agent as well as the buyer's transactions. They help convert investment properties, swap properties between producers and consumers, respectively. Therefore, a financial intermediary would be a finance company that converts capital instruments into investment capital.Other decisions are given aren't connected to the results provided. So that is indeed the safest decision.
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 45%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000.
Do not round intermediate calculations. Round your answer to the nearest dollar.
Answer: $412,600
Explanation:
AFN = Increase in assets - Increase in Liabilities - Addition to Retained Earnings
Increase in Assets
= 5,000,000 * 15%
= $750,000
Increase in Liabilities
Only use Accruals and Accounts Payable
= (450,000 + 450,000) * 15%
= $135,000
Additional to Retained Earnings
= After tax Profit
= 9,200,000 * 4%
= $368,000
Addition to retained earnings = 368,000 * ( 1 - payout ratio)
= 368,000 * ( 1 - 45%)
= $202,400
Additional Funds Needed (AFN) = 750,000 - 135,000 - 202,400
= $412,600
when the fed acts as a lender of last resort like it did in the financial crisis of 2007, it is performing its role of
Answer: C: being the bankers' bank.
Explanation:
The Fed is the Central Bank system of the United States. This means that they have certain duties conferred on them in order to ensure that the financial system of the country does not fail.
One of those duties is to be the Bankers' Bank. This means that the Fed can loan money to Commercial banks just like how Commercial banks do to entities. In acting as the lender of last resort and loaning money to banks so that they could survive the 2007 Financial crises, the Fed was acting as the Bank for the banks.
Eduardo has been reading about the use of drone technology in recent military conflicts and is not quite sure what to think. On the one hand, the use of drones means that military missions can be executed without putting American lives at risk. On the other hand, this very fact means that our political leaders might be quicker to resort to military solutions when other solutions might be available. Eduardo is also concerned about other effects of fully mechanized battle operations. For instance, unlike a human soldier, a drone can neither hear nor sympathize with a mother pleading for the life of her innocent child. Eduardo has decided to research the topic of military drones in more detail and write an essay in which he decides whether the use of drone technology is a positive or negative development in the history of American military action. Which type of argument will Eduardo be making?
a. Argument of fact
b. Argument of definition
c. Argument of evaluation
d. Policy argument
Answer:
c. Argument of evaluation
Explanation:
Eduardo will be making a decision on "whether the use of drone technology is a positive or negative development in the history of American military action." This is a judgement call. And he will be determining whether or not drone usage is good or bad. So this is purely an argument of evaluation. The argument is not of fact or definition or a policy argument, but one in which he will establish his opinion on the issue of the use of drone technology in the military.
I WILL GIVE BRAINLIEST
Lean and Six Sigma models contradict one another,
True
False
Suppose the following data were taken from the 2017 and 2016 financial statements of American Eagle Outfitters. (All numbers, including share data, are in thousands.)
2017 2016
Current assets $ 890,400 $999,600
Total assets 1,950,000 1,878,000
Current liabilities 424,000 357,000
Total liabilities 573,300 552,132
Net income 166,830 337,600
Net cash provided by operating activities 300,000 452,600
Capital expenditures 271,000 246,500
Dividends paid on common stock 85,000 76,500
Weighted-average shares outstanding 201,000 211,000
a. Calculate the current ratio for each year. (Round answers to 2 decimal places, e.g. 15.25.)
2017 2016
Current ratio
b. Calculate earnings per share for each year. (Round answers to 2 decimal places, e.g. 15.25.)
2017 2016
Earnings per share $
c. Calculate the debt to assets ratio for each year. (Round answers to 1 decimal place, e.g. 29.5%)
2017 2016
Debt to assets ratio
d. Calculate the free cash flow for each year. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).)
2017 2016
Free cash flow
Answer:
Please see below
Explanation:
a. Current ratio
= Total current asset / Total current liabilities
2017
Current asset. 890,400
Current liabilities 424,000
Current ratio = 890,400/424,000
= 2.1
2016 Current ratio
Current asset. 999,600
Current liabilities 357,000
Current ratio = 999,600/357,000
= 2.8
b. Earnings per share
= (Net income - Preference dividend) / Weighted average number of shares outstanding
2017
Net income. 166,830
Weighted Average number of shares outstanding 201,000
Earnings per share = $166,830/201,000
= $0.83
2016 Earnings per share
Net income $337,600
Weighted Average number of shares outstanding 211,000
Earnings per share = $337,600/211,000
= $1.6
c. Debt to asset ratio
= Total liabilities / Total assets
2017
Total liabilities 573,300
Total assets 1,950,000
= 573,300/1,950,000
= 0.29
2016 Debt to asset ratio
Total liabilities 552,132
Total assets 1,878,000
Debt to asset ratio = 552,132/1,878,000
= 0.29
d. Free cash flow
2017
Cash flow from operating activities 300,000
Less: capital expenditure (271,000)
Free cash flow 29,000
2016 free Cash flow from operating activities
Free cash flow 452,600
Less: capital expenditure (246,500)
Free cash flow. 206,100
Which are possible employers in the Financial career cluster? Check ALL that apply.
A. private company
B. government
C. nonprofit organization
D. bank
E. stock market
The correct option is B and D.
What is the Finance Career Cluster?The Finance Career Cluster prepares students for careers in financial and investment planning, banking, insurance, and business financial management. Finance career opportunities are available in every sector of the economy and require skills in organization, time management, customer service, and communication.
What are the four career pathways in finance?The four career pathways in the finance cluster are banking and related services, business financial management, financial and investment planning, and insurance services.
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Alpha Inc. has receivables from unrelated parties with a face value of $5,000. It transfers these receivables to bank for $4,500, without recourse. It will continue to collect the receivables, depositing them in a non-interest-bearing bank account with the cash flows remitted to the bank at the end of each month. It is not allowed to sell or pledge the receivables to anyone else and is under no obligation to repurchase the receivables from bank. Which of the following is the appropriate treatment for these Accounts receivables?
A) It should show these receivables in its Balance Sheet.
B) It should amortize these receivables.
C) It should derecognize these receivables.
D) It should derecognize these receivables if it retains the interest earned on these.
Answer:
C). It should derecognize these receivables.
Explanation:
Derecognition is characterized as the process of removing or derecognizing a financial asset or liability from the company's balance sheet that was previously acknowledged. In the given situation, the appropriate treatment for the Account receivables would be to dercognize it as the organization does not possess any control over them. Thus, option C is the correct answer.