Answer:
Net operating loss -$10,360
Explanation:
The computation of the net operating loss for the year 2015 is as follows:
Salary $30,000
Interest income 7,000
Alimony received 12,000
Less Individual retirement account contribution 2,000
Adjusted gross income $47,000
Home mortgage interest expense -$4,000
Property taxes -$2,000
Personal casualty loss ($38,000) - ($47,000 × 0.10) -$33,300
Stolen investment property -$16,000
Unreimbursed employee business loss ($3,000) - ($47,000 × 0.02) -$2,060
Net operating loss -$10,360
Bluestone Company had three intangible assets at the end of the current year:
a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $3,600. When purchased, the patent had an estimated life of 12 years.
b. A trademark was registered with the federal government for $8,000. Management estimated that the trademark could be worth as much as $200,000 because it has an indefinite life.
c. Computer licensing rights were purchased this year on January 1 for $90,000. The rights are expected to have a six-year useful life to the company.
Required:
a. Compute the acquisition cost of each intangible asset.
b. Compute the amortization of each intangible for the current year ended December 31.
c. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year.
Answer:
Bluestone Company
a. The acquisition cost of each intangible asset:
a. Patent $3,600
b. Trademark $8,000
c. Licensing Rights $90,000
b. The amortization of each intangible asset for the current year ended December 31:
a. Patent $3,600/12 = $300
b. Trademark $8,000 indefinite life $0
c. Licensing Rights $90,000/6 = $15,000
c. Balance Sheet as of December 31, of the current year:
Intangible Asset:
a. Patent $3,600
b. Trademark 8,000
c. Licensing Rights 90,000
Total Intangible $101,600
less amortization 15,300
Net book value $86,300
Income Statement for the year ended December 31 of the current year.
Amortization Expenses:
a. Patent $300
c. Licensing Rights $15,000
Explanation:
a) Data and Analysis:
a. Patent $3,600 Cash $3,600
b. Trademark $8,000 Cash $8,000
c. Licensing Rights $90,000 Cash $90,000
a. Acquisition cost of each intangible asset:
a. Patent $3,600
b. Trademark $8,000
c. Licensing Rights $90,000
b. Amortization of each intangible asset:
a. Patent $3,600/12 = $300
b. Trademark $8,000 indefinite life $0
c. Licensing Rights $90,000/6 = $15,000
What is segregated fund.
Review each of the following independent sets of conditions. For each condition, calculate the (1) sample rate of deviation, and use the AICPA sample evaluation tables to identify the (2) upper limit rate of deviation, and (3) allowance for sampling risk (n = sample size, d = deviations. ROO = risk of overreliance). (Round your answers to 1 decimal place.)
a. n = 100. d = 8. ROO = 5%.
b. n = 100. d = 4. ROO = 5%.
c. n = 100. d = 8. ROO = 10%.
Answer: See explanation
Explanation:
a. n = 100. d = 8. ROO = 5%.
i. Sample rate of deviation will be:
= Number of Deviations / Sample size
= 8/100
= 8%
ii. Upper limit rate of deviation = 14%
iii. Allowance for sampling risk will be:
= Upper Limit Rate of Deviation - Sample rate of devaition
= 14% - 8%
= 6%
b. n = 100. d = 4. ROO = 5%.
i. Sample rate of deviation will be:
= Number of Deviations / Sample size
= 4/100
= 4%
ii. Upper limit rate of deviation = 9%
iii. Allowance for sampling risk will be:
= Upper Limit Rate of Deviation - Sample rate of devaition
= 9% - 4%
= 5%
c. n = 100. d = 8. ROO = 10%.
i. Sample rate of deviation will be:
= Number of Deviations / Sample size
= 8/100
= 8%
ii. Upper limit rate of deviation = 12.7%
iii. Allowance for sampling risk will be:
= Upper Limit Rate of Deviation - Sample rate of devaition
= 12.7% - 8%
= 4.7%
A college uses advisors who work with all students in all divisions of the college. The most useful allocation basis for the salaries of these employees would likely be: Multiple Choice number of classes offered in each division. student graduation rate. square footage of each division. number of students advised from each division. relative salaries of division heads.
Answer: number of students advised from each division
Explanation:
When negotiators have an audience watching their progress in the negotiations, the audience's negotiator: is more likely to give in to the other party's demands. pays more attention to saving face. feels and acts the same as if no one were viewing the negotiation. tends to be more willing to make concessions to the other party. tends to feel more cooperative and is more willing to make concessions to the other party.
Answer:
Pays more attention to saving face.
Explanation:
Negotiation
This is simply a social process through which interdependent people with conflicting interests finds out how they will allocate resources or work together in the future. It is also defined as discussion process or procedures by which two or more parties aim for mutually acceptable agreement. Those involved are called negotiators.
An Audience
This is simply regarded as any person or group of individuals who are not directly involved in, influenced or affected by a negotiation. They do have a chance to observe and react to the ongoing events and sometimes are drawn into the negotiation.
The effect of audience on negotiator includes making them to
1. Try harder and act tougher that is If they know they are under surveillance, negotiators will use distributive bargaining manner.
2. Seek positive reactions
3. Push them into irrational behavior
Help! (Also ignore my mouse)
Answer:
License: legal permission to work granted by the government
Associated degree: general two-year college-level degree
Career college: a one or two-year program ending with a certificate
Bachelor's degree: four-year college level degree
Apprenticeship: an on-the-job training experience
Explanation:
License: legal permission to work granted by the government
Associated degree: general two-year college-level degree
Career college also called vocational school: a one or two-year program ending with a certificate
Bachelor's degree: four-year college level degree
Apprenticeship: an on-the-job training experience
The Xtra Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available:______.
Human
Resources Janitorial Sales #1 Sales #2 Sales #3
Budgeted cost $54,000 $39,000
Space in square feet 13,000 10,000 26,000 40,000 64,000
Number of employees 10 15 20 40 25
1. Using the direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is: (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount.)
a. $17,696.
b. $10,636.
c. $9,941.
d. $13,750.
e. $12,000.
2. Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 3 is (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount):
a. $12,273.
b. $22,500.
c. $13,382.
d. $13,500.
e. $15,882.
3. Using the direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is: (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount.)
a. $17,696.
b. $12,000.
c. $10,636.
d. $13,750.
e. $9,941.
4. Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 3 is (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount):______.
a. $22,500.
b. $13,500.
c. $12,273.
d. $13,382.
e. $15,882.
Answer:
The Xtra Store
1. Using the direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is:
e. $12,000.
2. Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 3 is:
d. $13,500.
3. Using the direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is:
b. $12,000.
4. Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 3 is:
b. $13,500.
Explanation:
a) Data and Calculations:
Human Resources Janitorial Sales #1 Sales #2 Sales #3
Budgeted cost $54,000 $39,000
Space in square feet 13,000 10,000 26,000 40,000 64,000
Number of employees 10 15 20 40 25
1. Direct method of allocation:
Janitorial Department cost of $39,000
Sales #2 = $12,000 ($39,000 * 40,000/130,000)
2. Step-down method:
Human Resources cost of $54,000
Sales #3 = $13,500 ($54,000 * 25/100)
Oriole Corporation has retained earnings of $682,100 at January 1, 2020. Net income during 2020 was $1,558,700, and cash dividends declared and paid during 2020 totaled $81,300. Prepare a retained earnings statement for the year ended December 31, 2020. Assume an error was discovered: land costing $89,160 (net of tax) was charged to maintenance and repairs expense in 2019.
Answer:
$2,248,660
Explanation:
According to the scenario, computation of the given data are as follows,
Particulars Amount
Retained Earning $682,100
Correction of repairs expense (Add) $89,160
Net income (Add) $1,558,700
Dividend Paid (Less) $81,300
Net retained earning $2,248,660
As a condition of being allowed to apply for a job with Good Hands Industries, Charles is asked to waive his right to object to workplace searches. After signing the waiver, he is offered a job, and he accepts it. Sometime later, he is subjected to a search. If Charles seeks legal redress on the grounds that the search violated his privacy rights, his employer:_________-
A. will be unable to successfully assert the waiver as a defense because it was not given voluntarily.
B. will be unable to successfully assert the waiver as a defense because Charles did not grant it intentionally.
C. will be unable to successfully assert the waiver as a defense because it was given by Charles prior to his job offer.
D. will be able to successfully assert the waiver as a defense because it was given in exchange for valuable consideration.
Answer:
The answer is C (will be unable to successfully assert the waiver as a defense because it was given by Charles prior to his job offer).
Explanation:
In the employment setting, there are instances where an employer could violate an employee privacy right. For instance, the Fourth Amendment’s prohibition on unreasonable search and seizure could be very strict on a public employer compared to a private employer where the private employers are given some degree of power too. Searching employees without their consent would be directly proportional to their breach of privacy that they have right to. Charles seeking legal redress is permitted since he initially signed to waive his right to object to workplace searches prior to his job offer. At every point where workplace searches is required by the employer especially when the searches are not done at public open places, the employee consent should be required too.
17. Andy Store sold merchandise in the amount of $5,800 to a customer on October 1, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Andy uses the perpetual inventory system. The journal entries that Andy will make on October 1 will include: A) Debit to Accounts Receivable for $4,000 B) Credit to Merchandise Inventory for $5,800 C) Debit to Cost of Goods Sold for $5,800 D) Credit to Merchandise Inventory for $4,000 E) Credit to Net Income for $1,800
Answer:
D) Credit to Merchandise Inventory for $4,000
Explanation:
Date Account and Explanation Debit ($) Credit ($)
Account Receivable 5,800
Sale 5,800
(Recorded the sale on credit)
Cost of goods sold 4,000
Merchandise Inventory 4,000
(Recorded the cost of goods sold)
Click to watch the Tell Me More Learning Objective 5 video and then answer the questions below. 1. The entry to record the amortization of a patent would include a debit to __________ and a credit to __________. Amortization Expense; Patents Amortization Expense; Accumulated Amortization Patents; Accumulated Amortization Patents Expense; Accumulated Amortization 2. The exclusive right to publish and sell a literary, artistic, or musical composition is granted by a patent. trademark. copyright. franchise.
Answer:
1. Amortization Expense; Patents.
2. Copyright.
Explanation:
Patent can be defined as the exclusive or sole right granted to an inventor by a sovereign authority such as a government, which enables him or her to manufacture, use, or sell an invention for a specific period of time.
Generally, patents are used on innovation for products that are manufactured through the application of various technologies.
Basically, the three (3) main ways to protect an intellectual property is to employ the use of
I. Trademarks.
II. Patents.
III. Copyright.
Copyright law can be defined as a set of formal rules granted by a government to protect an intellectual property by giving the owner an exclusive right to use while preventing any unauthorized access, use or duplication by others.
Filling the missing words or texts in the question, we have;
1. The entry to record the amortization of a patent would include a debit to amortization expense and a credit to patents. Amortization in financial accounting is used to periodically lower the book value of a loan principal or an intangible asset such as intellectual property over a set period of time.
2. Copyright: the exclusive right to publish and sell a literary, artistic, or musical composition is granted by a patent.
The Cork Company has been sent a special order of 6,000 dongles to be shipped at the end of the month at a selling price of $7 each. The company has a production capacity of 90,000 dongles per month with total fixed production costs of $144,000. At present, the company is selling 80,000 dongles per month through regular channels at a selling price of $11 each. For these regular sales, the cost for one dongle is:
Variable Production $4.60
Cost Fixed Production Cost $1.80
Variable Selling Expense $1.00
At what selling price per unit should Cork be indifferent between accepting or rejecting the special offer?
a. $7.40.
b. $7.70
c. $6.40
d. $4.90.
e. None of the answers provided is correct.
Answer:
Indifferent special order price=$5.60
Explanation:
To determine whether or not Cork Company should accept the order, we will compare the variable cost of the order to the sales value . If the special order generates a positive contribution margin, then it should be accepted.'
The relevant cash flows to be considered here includes
1. Variable cost of the special order
2. Sales revenue from the special order.
Note that the fixed cost are general unavoidable costs which would be incurred either way. And therefore should not be considered .
variable cos per unit = 4.60 +1.00= 5.60
$
Sales revenue from special order
(7×6,000) 42,000
Variable cost (5.60× 6,000) (33,600)
Net income from special order 8,400
A special order price that will produce a net income of zero is that which will make the Cork Company indifferent. And such price is that which equals to the variable cost of selling
Indifferent special order price = variable cost per unit = $5.60
Indifferent special order price=$5.60
The special offers under the cost accounting are the changes or the events arranged in between the regular business operations. The special offer is launched at lower or higher variable costs. This is done either to attract customers or to clear off the stock.
The correct option is e. None of the answer provided is correct.
The selling price per unit that is indifferent between accepting or rejecting the special offer is $5.60
As per the computation, the special offer should be accepted.
Computations:
The indifferent special order price should include only the variable cost.
[tex]\text{Indifferent price}=\text{Variable Production cost}+\text{Variable selling expense}\\\\=\$4.60+\$1.00\\\\=\$5.60[/tex]
Computation of net income from a special offer:
[tex]\text{Net Income}=\text{Sales revenue}-\text{Variable cost}\\\\=(\$7\times6,000)-(\$5.60\times6,000)\\\\=\$442,000-\$33,600\\\\=\$8,400[/tex]
For taking the decision of accepting or rejecting the special offer:
variable costs of existing and special offers are compared.The variable cost and the selling price must be equal for generating a net income of zero.The positive contribution margin indicates acceptance of the special offer.To know more about cost accounting, refer to the link:
https://brainly.com/question/4340876
Production Budget and Direct Materials Purchases Budget
Jani Subramanian, owner of Jani's Flowers and Gifts, produces gift baskets for various special occasions. Each gift basket includes fruit or assorted small gifts (e.g., a coffee mug, deck of cards, novelty cocoa mixes, scented soap) in a basket that is wrapped in colorful cellophane. Jani has estimated the following unit sales of the standard gift basket for the rest of the year and for January of next year.
September 250
October 200
November 230
December 380
January 100
Jani likes to have 10% of the next month's sales needs on hand at the end of each month. This requirement was met on August 31.
Two materials are needed for each fruit basket:
Fruit 1 pound
Small gifts 6 items
The materials inventory policy is to have 10% of the next month's fruit needs on hand and 30% of the next month's production needs of small gifts. (The relatively low inventory amount for fruit is designed to prevent spoilage.) Materials inventory on August 31 met this company policy.
Required:
1. Prepare a production budget for September, October, November, and December for gift baskets. (Note: Round all answers to the nearest whole unit.)
Jani's Flowers and Gifts
Production Budget for Gift Baskets
For September, October, November, and December
September October November December
Sales
Desired ending inventory
Needed
Less: Beginning inventory production
Total
2. Prepare a direct materials purchases budget for the two types of materials used in the production of gift baskets for the months of September, October, and November. (Note: Round answers to the nearest whole unit.)
Jani's Flowers and Gifts
Direct Materials Purchases Budget
For September, October, and November
Fruit: September October November
Production
Pounds of fruit
Required for production
Desired ending inventory
Total needs
Less: Beginning inventory
Pounds purchased
Small gifts:
Production
Items required
Needed for production
Desired inventory
Total needs
Less: Beginning inventory
Items purchased
Answer:
Jani's Flowers and Gifts
1. Jani's Flowers and Gifts
Production Budget for September, October, November, and December for Gift Baskets:
Sept Oct. Nov. Dec.
Estimated sales units 250 200 230 380
Estimated ending inventory 20 23 38 10
Units available for sale 270 223 268 390
Beginning inventory 25 20 23 38
Production required 245 213 245 352
2. Jani's Flowers and Gifts
Direct Materials Purchases Budget
For September, October, and November
Sept Oct. Nov.
Fruit (1 pound):
Production requirement 245 213 245
Ending inventory: 21 25 35
Total needs 266 238 280
Beginning inventory: 25 21 25
Pounds purchased 241 217 255
Small Gifts (6 items each):
Production requirement 1,470 1,278 1,470
Ending inventory: 383 441 634
Total needs 1,853 1,719 2,104
Beginning inventory: 441 383 441
Items Purchased 1,412 1,336 1,663
Explanation:
a) Data and Calculations:
Sept Oct. Nov. Dec. Jan.
Estimated sales units 250 200 230 380 100
Estimated ending inventory 20 23 38 10
Units available for sale 270 223 268 390
Beginning inventory 25 20 23 38 10
Production required 245 213 245 352
Jani's Flowers and Gifts
Direct Materials Purchases Budget
For September, October, and November
Sept Oct. Nov. Dec.
Fruit 1 pound:
Production requirement 245 213 245 352
Ending inventory: 21 25 35 106
Total needs 266 238 280 458
Beginning inventory: 25 21 25 35
Pounds purchased 241 217 255 423
Small Gifts 6 items each:
Production requirement 1,470 1,278 1,470 2,112
Ending inventory: 383 441 634 1,899
Total needs 1,853 1,719 2,104 4,011
Beginning inventory: 441 383 441 634
Items Purchased 1,412 1,336 1,663 3,377
Common size financial statements help an analyst to:
Select one:
a. Evaluate financial statements of companies within a given industry of the approximate same size.
b. Determine which companies in a similar industry are at approximately the same stage of development.
c. Compare the mix of assets, liabilities, capital, revenue, and expenses within a company over a period of time or between companies within a given industry without respect to size.
d. Ascertain the relative potential of companies of similar size in different industries.
Answer:C
Explanation:
Compare the mix of assets, liabilities, capital, revenue, and expenses within a company over a period of time or between companies within a given industry without respect to size.
The employer mandate of the PPACA requires that :_______
a. every firm must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
b. every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
c. every firm with fewer than 50 full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
d. every firm with 500 or more employees must establish their own on-site medical facilities to provide employees with basic medical care.
Answer:
b. every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
Explanation:
An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.
Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).
Hence, while an employer may be the owner of a business firm or company, an employee is a subordinate employed to provide unwavering services to the employer while also, being professional and diligent at all times.
The employer mandate of the Patient Protection and Affordable Care Act (PPACA) requires that every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
Roy Wilton is a CPA who recently made a poor investment. When researching the investment, Roy examined the financial statements of the firm, but did not read the accompanying footnotes, and therefore didn’t comprehend the broader context underlying those financial statements. Which of the following is true with respect to the enhancing qualitative characteristic of understandability in this case?
a. This demonstrates a violation of understandability, given that Roy did not comprehend all relevant information.
b. This does not demonstrate a violation of understandability, as Roy did not bother to read the footnotes but could have understood them if he did so.
c. This does not demonstrate a violation of understandability, but rather completeness, as Roy’s understanding was incomplete.
d. This demonstrates a violation of understandability, as CPAs should be able to rely on the financial statements alone.
Answer: This does not demonstrate a violation of understandability, as Roy did not bother to read the footnotes but could have understood them if he did so
Explanation:
Even though Roy examined the financial statements of the firm, as stated above, he didn't read the accompanying footnotes, and hence, he did not comprehend the underlying context of the financial statements.
Therefore, in this case this doesn't demonstrate a violation of understandability, due to the fact that Roy did not bother to read the footnotes but could have understood them if he did so.
According to concept of understandability in accounting, the information that are given in financial statements must be understandable by the financial statements and users.
Waterway Industries uses the gross method to record sales made on credit. On June 10, 2020, it sold goods worth $246000 with terms 3/10, n/30 to Carla Vista Co. On June 19, 2020, Waterway received payment for 1/2 of the amount due from Carla Vista Co. Waterways fiscal year end is on June 30, 2020. What amount will be reported in the financial statements for the accounts receivable due from Carla Vista Co.
Answer:
$123,000
Explanation:
Calculation to determine What amount will be reported in the financial statements for the accounts receivable due from Carla Vista Co
Using this formula
Accounts receivable due=(Goods sold worth -(1/2 of the amount due)
Let plug in the formula
Accounts receivable due=$246,000-(1/2 *$246000)
Accounts receivable due=$246,000-$123,000
Accounts receivable due=$123,000
Therefore The amount that willbe reported in the financial statements for the accounts receivable due from Carla Vista Co is $123,000
when originally issued, an investment in bonds of Flushing Dough, Inc., promised to provide an annual coupon of 7.50%. The bonds have 4 years until maturity, a market price of $735, and are expected to pay all coupon on time. At maturity, however, the bonds are only forecasted to pay 84% of their par value. What is the likely yield to maturity on the bonds
Answer:
13.14%
Explanation:
Yield to maturity on the bonds is derived using the Ms RATE function:
Yield to maturity = RATE(nper,pmt,pv,fv)
Yield to maturity = RATE(4, 7.50%*1000, -735, 84%*1000)
Yield to maturity = 0.131435387
Yield to maturity = 13.14%
Hence, the likely yield to maturity on the bonds is 13.14%
The following costs related to Summertime Company for a relevant range of up to 20,000 units annually: Variable Costs: Direct materials $2.50 Direct labor 0.75 Manufacturing Overhead 1.25 Selling and administrative 1.50 Fixed Costs: Manufacturing overhead $10,000 Selling and Administrative 5,000 The selling price per unit of product is $15.00. At a sales volume of 15,000 units, what is the total cost for Summertime Company
Answer:
Total cost= $105,000
Explanation:
Because the 15,000 units are in the relevant range, the fixed costs remain constant. Now, we need to calculate the total cost of 15,000 units:
Direct material= 15,000*2.5= 37,500
Direct labor= 15,000*0.75= 11,250
Variable overhead= 15,000*1.25= 18,750
Variable selling and administrative= 15,000*1.5= 22,500
Total variable cost= $90,000
Total fixed costs= $15,000
Total cost= $105,000
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section.
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:
1 Dec 31, 20Y8 Dec 31, 20Y7
2 Assets
3 Cash $75,170 $92,110
4 Accounts Receivable (net) 115,500 124,180
5 Merchandise Inventory 165,000 153,920
6 Prepaid Expenses 6,720 4,660
7 Equipment 336,110 275,760
8 Accumulated depreciation-equipment (87,390) (67,630)
9 Total Assets $611,110 $583,000
10 Liabilities and Stockholder's Equity
11 Accounts Payable (merchandise creditors) $128,330 $121,850
12 Mortgage note payable 0 174,900
13 Common stock, $1 par 19,000 12,000
14 Paid-in capital: Excess of issue price over par-common stock 297,000 164,000
15 Retained Earnings 166,780 110,250
16 Total Liabilities and Stockholders' Equity $611,110 $583,000
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
A Net Income, $144,720
B Depreciation reported on the income statement, $42,650
C Equipment was purchased at a cost of $83,240, and fully depreciated equipment costing $22,890 was discarded, with no salvage realized
D The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty
E 7,000 shares of common stock were issued at $20 for cash
F Cash dividends declared and paid, $88,190
Yellow Dog Enterprises Inc
Statement of Cash Flows
For the year ended December 31, 20Y8
1 Cash flows from operating activities
2
3 Adjustments to reconcile net income to net cash flow from operating activities
4
5 Changes in current operating assets and liabilities
6
7
8
9
10 Net cash flow from operating activities
11
12 Cash flows from (used for) investing activities
13
14 Net cash flow used for investing activities
15
16 Cash flows from (used for) financing activities
17
18
19
20 Net cash flow used for financing activities
21
22 Cash at the beginning of the year
23
24 Cash at the end of the year
25
Answer:
Yellow Dog Enterprises Inc.
Yellow Dog Enterprises Inc
Statement of Cash Flows
For the year ended December 31, 20Y8
1 Cash flows from operating activities
2 Net income $144,720
3 Adjustments to reconcile net income to net
cash flow from operating activities
4 Depreciation expense 42,650
5 Changes in current operating assets and liabilities
6 Accounts Receivable (net) 8,680
7 Merchandise Inventory -11,080
8 Prepaid Expenses -2,060
9 Accounts payable 6,480
10 Net cash flow from operating activities $189,390
11
12 Cash flows from (used for) investing activities
13 Purchase of equipment -83,240
14 Net cash flow used for investing activities (83,240)
15
16 Cash flows from (used for) financing activities
17 Common stock issued 140,000
18 Cash Dividends paid -88,190
19 Mortgage note payable -174,900
20 Net cash flow used for financing activities (123,090)
21 Net Cash Flows ($16,940)
22 Cash at the beginning of the year $92,110
23
24 Cash at the end of the year $75,170
25
Explanation:
a) Data and Calculations:
Comparative balance sheet of
Yellow Dog Enterprises Inc.
At December 31, 20Y8 and 20Y7
1 Dec 31, 20Y8 Dec 31, 20Y7
2 Assets Changes
3 Cash $75,170 $92,110 -$16,940
4 Accounts Receivable (net) 115,500 124,180 -8,680
5 Merchandise Inventory 165,000 153,920 11,080
6 Prepaid Expenses 6,720 4,660 2,060
7 Equipment 336,110 275,760 60,350
8 Accumulated depreciation (87,390) (67,630) (19,760)
9 Total Assets $611,110 $583,000
10 Liabilities and Stockholders Equity
11 Accounts Payable $128,330 $121,850 $6,480
12 Mortgage note payable 0 174,900 -174,900
13 Common stock, $1 par 19,000 12,000 7,000
14 Paid-in capital-common stock 297,000 164,000 133,000
15 Retained Earnings 166,780 110,250
16 Total Liabilities & Stockholders' Equity $611,110 $583,000
Analysis of additional information:
A Net income $144,720
B Depreciation expense = $42,650
C Equipment purchase $83,240 Cash $83,240
Discarded Equipment = $22,890
E Cash $140,000 Common stock issued $7,000 Paid-in Capital $133,000
F Cash Dividends $88,190 Cash $88,190
Equipment Account
Account Titles Debit Credit
Beginning balance 275,760
Cash 83,240
Discarded equipment 22,890
Ending balance 336,110
Aldo Industries, Inc. has two service departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly). The company allocates Building Maintenance cost on the basis of square footage and believes that Building Maintenance provides more service than Human Resources. The square footage occupied by each department follows.
Human Resources 6,000
Building Maintenance 13,000
Machining 1 8,000
Assembly 26,000
Assuming use of the step-down method, over how many square feet would the Building Maintenance cost be allocated (i.e., spread)?
Answer:
50,000 Square feet
Explanation:
Building maintenance provides more service than human resource and this means the cost of Building maintenance departments would be allocated to all remaining three department including human resource department.
Square feet over which Building Maintenance cost would be allocated = Square Footage of Human Resources + Square Footage of Machining + Square Footage of Assembly
= 6,000 + 18,000 + 26,000
= 50,000
You have purchased a small medical office building in Hoboken for $3,500,000 and financed the acquisition by borrowing $2,500,000 in the form of a 5-year mortgage with a 30-year amortization period. If the loan has an 8% interest rate and payments are made on an annual basis, what is the mortgage interest deduction you receive in the first year
Answer:
$200,000
Explanation:
Interest calculation is based on the Principle amount of $2,500,000 borrowed .
Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 6 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 8 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued: Cash Paid Interest Expense Amortization Balance January 1, Year 1 $948 December 31, Year 1 $60 $76 $16 964 December 31, Year 2 60 77 17 981 December 31, Year 3 60 79 19 1,000 Required: 1. What was the bond's issue price
Answer:
Total of amortisation for 3 years = 16+17+19 = 52
Bonds issue price = 1000 - 52 = $948
I hope this helps a little bit.
Before an interview, you should perform a self-assessment to:
A. review your strengths, weaknesses, and career goals.
B. choose what you should study in college.
C. discover what you like to do.
D. find out what careers are right for you.
SUBMIT
Answer: review your strengths, weaknesses, and career goals
Answer:
A. review your strengths, weaknesses, and career goals
Explanation:
At some point during the interview process, you may be asked to describe your personal strengths and weaknesses. Many job candidates are unsure about how to approach this question. However, by establishing the appropriate context, you can give hiring managers an honest, thoughtful answer that highlights both your self-awareness and professionalism.
Preparing ahead of time for this question is a valuable use of your time before the interview. Even if you aren’t asked about your strengths and weaknesses specifically, scripting out your response to this common question will give you a candid yet compelling description of what you bring to the table and how you wish to grow in the future. With these talking points at the ready, you’ll be able to confidently answer many common interview questions.
Suppose the world price is $20. a. Is this country an exporter or an importer? A. exporter B. importer b. How many units of the good are exported/imported? nothing units c. Fill in the chart below. If your answer is negative, put a minus sign in front of the number. Area Before Trade Value After Trade Value Change Value Consumer Surplus $ nothing $ nothing $ nothing Producer Surplus $ nothing $ nothing $ nothing Total Welfare $ nothing $ nothing $ nothing d. Who gains when the country allows free international trade? A. consumers and the government B. consumers C. no one gains D. consumers and producers E. consumers, producers, and the government F. producers G. producers and the government H. the government Who loses from free trade in this case? A. the government B. no one gains C. consumers and the government D. producers E. consumers F. consumers, producers, and the government G. producers and the government H. consumers and producers Overall, is there a net gain or a net loss when the country moves from No Trade to Free Trade? A. net gain B. net loss What is the overall value of the gain or loss? $ nothing (if your answer is negative, put a minus sign before your answer).
Question Completion:
Answer:
1. This country is an
B. importer.
2. The units of the good that are exported/imported are 200.
3. Chart filling
Area Before Trade After Trade Change Value
Value Value
Consumer Surplus $4,000 $9,000 $5,000
Producer Surplus $4,000 $1,000 $−3,000
Total Welfare $8,000 $10,000 $2,000
4. The group that gains when the country allows free international trade.
B. consumers
5. The group that loses from free trade in this case is:
D. producers
6. A. net gain
7. The overall value of the gain is $2,000
Explanation:
a) Data and Calculations:
Area Before Trade After Trade Change
Value Value Value
Consumer Surplus $? $? $?
Producer Surplus $? $? $?
Total Welfare $ ? $? $?
Consumer surplus = Total quantity demanded at consumer's price minus equilibrium quantity * equilibrium price
Producer surplus = Total quantity supplied at supplier's price minus equilibrium quantity * equilibrium price
Change value at consumer surplus = $5,000 ($9,000 - $4,000)
Change value at producer surplus = $-3,000 ($1,000 - $4,000)
Total welfare before trade = $8,000 ($4,000 + $4,000)
Total welfare after trade = $10,000 ($9,000 + $1,000)
The net gain from free international trade is the difference between the total welfare value after trade and before trade = $2,000 ($10,000 - $8,000)
Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1). (Use appropriate factor(s) from the tables provided.)
Project A Project B
Initial investment $ (174,325 ) $ (152,960 )
Expected net cash flows in year:
1 41,000 44,000
2 60,000 53,000
3 72,295 68,000
4 87,400 81,000
5 59,000 30,000
For each alternative project compute the net present value.
Project A
Initial Investment $174,325
Chart values are based on:
i =
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
4 =
5 =
Project B
Initial Investment $152,960
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
4 =
5 =
For each alternative project compute the profitability index.
Choose Numerator: / Choose Denominator: = Profitability index
/ = Profitability index
Project A
Project B
2. Assume If the company can only select one project, which should it choose?
Project A or Project B
Answer:
Project A
NPV = $91,771.53
PI = 1.53
Project B
NPV = $79,390.69
PI = 1.52
Project A should be chosen because it has the higher NPV
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Project A
Cash flow in year 0 = $ (174,325)
Cash flow in year 1 = 41,000
Cash flow in year 2 = 60,000
Cash flow in year 3 = 72,295
Cash flow in year 4 = 87,400
Cash flow in year 5 = 59,000
I = 6%
NPV = $91,771.53
Project B
Cash flow in year 0 = (152,960 )
Cash flow in year 1 = 44,000
Cash flow in year 2 = 53,000
Cash flow in year 3 = 68,000
Cash flow in year 4 = 81,000
Cash flow in year 5 = 30,000
I = 6%
NPV = $ $79,390.69
profitability index = 1 + (NPV / Initial investment)
Project A = 1 +( $91,771.53 /$174,325) = 1.53
Project B = 1 + ( $79,390.69 / 152,960 = 1.52
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
49. Marcy Company declared a 100% common stock dividend on January 1, 2005, when the market price of the stock was $7.50. The entry to record this dividend will: A) debit Retained Earnings,$100,000 B) credit Common Stock Dividend Distributable,$50,000 C) credit Contributed Capital in excess of par, Common Stock, $25,000 D) credit Common Stock Dividend Distributable, $100,000 E) Since this is considered a stock split, no journal entry is made
Answer:
C) credit Contributed Capital in excess of par, Common Stock, $25,000
Explanation:
Missing word "Preferred Stock - 6% cumulative, $20 par value, 10,000 shares authorized, 5,000 shares issued and outstanding . .$100,000. Contributed Capital in excess of par value, Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000. Common Stock, $5 par value, 20,000 shares authorized, 10,000 shares issued and outstanding. . . . . . . . . . . . . . . . . 50,000. Contributed Capital in excess of par value, Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000. Total Contributed Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 850,000. Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150,000. Total Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000"
The journal entry to record the stock dividend will be:
Date Account Titles Debit Credit
Retained earnings $75,000
(10000*7.50*100%)
Common stock dividends distributable $50,000
(10000*100%*$5)
Contributed Capital in excess of par value, $25,000
Common Stock (10000*100%*(7.5-5))
What amount should be paid on the maturity date to settle a one-hundred-twenty day loan dated March 19, 2013, if the present value is ₱15,600 at 13 2/7% simple interest?
A. ₱690.86
B. ₱16,290.86
C. ₱16,281.39
D. ₱681.39
Answer:
c
Explanation:
Suppose Dina gets a sales bonus at her place of work that gives her an extra $800 of disposable income. She chooses to spend $600 and save the remaining $200. From this, you can tell that Dina's marginal propensity to consume (MPC) is , and her marginal propensity to save (MPS) is . Mathematically, it must always be true that: Disposable Income = Therefore, it must also be true that: 1 =
Answer:
MPC = 0.75
MPS = 0.25
Disposable income = amount spent on consumption + amount saved
Marginal Propensity to Consume + Marginal Propensity to Save = 1
Explanation:
Marginal propensity to consume is the proportion of disposable income that is spent on consumption
Marginal propensity to consume = amount consumed / disposable income
Marginal propensity to save is the proportion of disposable income that is saved
Marginal propensity to save = amount saved / disposable income
MPC + MPS = 1
Disposable income = amount spent on consumption + amount saved
MPC = 600 / 800 = 0.75
MPS = 200 / 800 = 0.25
WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7. The company is projecting sales of 1,000 units for the month of March. There are 30 units in the beginning inventory. Each unit requires 20 ounces of raw materials and 0.20 direct labor hours to make. The company's policy is to keep ending finished goods inventory of 10% of the current month's sales. Selling and administrative expenses for the month have been budgeted at $2,000. If the direct labor cost per hour is $0.75, calculate the budgeted direct labor cost for the month of March.
A. $214.00
B. $160.50
C. $802.50
D. $236.00
Answer:
b. . $160.50
Explanation:
Projected Sales 1,000 units
Desired ending inventory = 10%*1,000 = 100 units
Beginning Inventory = 30 units
Required production = Projected Sales + Desired ending inventory - Beginning Inventory
Required production = 1,000 units + (10%*1,000 units) - 30 units
Required production = 1,000 units + 100 units - 30 units
Required production = 1,070 units
Labor hours per unit = 0.20
Cost per labor hour = $0.75
Budgeted labor cost for March = Required production*Labor hours per unit*Cost per labor hour
Budgeted labor cost for March = 1,070 units*$0.20*$0.75
Budgeted labor cost for March = $160.50
Hence, the budgeted labor cost for March is $160.50.