Answer:
Total dollar return is $103.00
Explanation:
The total dollar return on the investment comprises of the increase in price as well as the annual coupon of 7.4% of face value received over the holding period of one year.
annual coupon=face value*coupon rate=$1000*7.4%=$74.00
increase in bond's price=$926-$897=$29.00
Total dollar return on investment=$74.00+$29.00
Total dollar return on investment=$103
Deborah currently earns a____________ wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.40 per gallon; in this case, Deborah's_______________ wage, in terms of the amount of milk she can buy with her paycheck, is______________ gallons of milk per hour.
Answer:
Deborah currently earns a_____hourly_______ wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of milk is $2.40 per gallon; in this case, Deborah's______hourly_________ wage, in terms of the amount of milk she can buy with her paycheck, is______5________ gallons of milk per hour.
Explanation:
The wage is calculated on hourly basis per day, so Deborah currently earns a hourly wage. Unlike a salary, wage is paid per day, or per week.
If milk costs $2.40 per gallon, and
Deborah earns $12.00 per hour, then...
Deborah's hourly wage in terms of the amount of milk she can buy is
==> $12.00 ÷ $2.40 = 5 gallons of milk per hour.
Using the post-closing trial balance, calculate the total assets, liabilities, and equity, and enter those amounts in the basic accounting equation.
SMART TOUCH LEARNING
Post-Closing Trial Balance December 31, 2016
Balance
Account Title Debit Credit
Cash 32900
Accounts Receivable 6300
Office Supplies 400
Prepaid Insurance 10900
Prepaid Rent 10,900
Furniture 38,700
Accumulated Depreciation-- 13100
Furniture Accounts Payable 17500
Salaries Payable 2600
Utilities Payable 1300
Interest Payable 1700
Unearned Revenue 33200
Common Stock 8400
Retained Earnings 22300
Total 1001,00 100100
Answer:
Assets= Liabilities + Owner's Equity
87,000= 56,300 + 30,700
87,000= 87000
Explanation:
SMART TOUCH LEARNING
Balance Sheet
Cash 32900
Accounts Receivable 6300
Office Supplies 400
Prepaid Insurance 10900
Prepaid Rent 10,900
Furniture 38,700
Accumulated Depreciation-- 13100
Total Assets $ 87,000
Furniture Accounts Payable 17500
Salaries Payable 2600
Utilities Payable 1300
Interest Payable 1700
Unearned Revenue 33200
Total Liabilities $ 56,300
Common Stock 8400
Retained Earnings 22300
Owner's Equity / Retained Earnings $30,700
Total Liabilities and Owner's Equity $ 87,000
The accounting equation is
Assets= Liabilities + Owner's Equity
87,000= 56,300 + 30,700
87,000= 87000
32900+ 6300+400 + 10900+ 10900+25600 = 17500 + 2600 + 1300 + 1700 + 33200 + 8400 22300
The total of Assets of a company are always equal to the total Liabilities and Owner's Equity.
Adding the assets we get $ 87,000 which is the same as the total of Liabilities and Owner's Equity.
How many Colgate options were outstanding as of December 31, 2013? Please provide your answer in thousands, without comma separator or decimal (Ex: 23456)
Answer:
68000
Explanation:
Colgate has options outstanding amount to 68000 in 2013. The weighted average exercise price of sock option outstanding is $47.15. Out of 68000 the 54800 option are available for issuance and rest 13000 are restricted stock which are ready for issuance under Incentive Compensation Plan.
On January 1 , a company borrowed $70000 cash by signing a 9% installment note that is to be repaid with 4 annual-end payment of $21607. While the amount borrowed equals $70000 , the total payment on this note amount to $86428. Explain
Answer:
86,428 - 70,000 = $16,428
This difference of $16,428 refers to the 9% interest that was paid over the 4 years. However, the 9% is only charged on the amount that is owed whch reduces every year by a principal repayment which also comes out of the $21,607.
Year 1
Payment = $21,607
Interest = 9% * 70,000 = $6,300.
Principal repayment = 21,607 - 6,300= $15,307
Amount left to be paid = 70,000 - 15,307 = $54,693
Year 2
Payment = $21,607
Interest = 9% * 54,693 = $4,922.37
Amount left to be paid = 54,693 - (21,607 - 4,922.37) = $38,008.37
Year 3
Payment = $21,607
Interest = 9% * 38,008.37 = $3,420.75
Amount left to be paid = 38,008.37 - (21,607 - 3,420.75) = $19,822.12
Year 4
Payment = $21,607
Interest = 9% * 19,822.12 = $1,783.99
Amount left to be paid = 19,822.12 - (21,607 - 1,783.99) = $0
Interest Year 1 - 4 = 6,300 + 4,922.37 + 3,420.75 + 1,783.99
= $16,427.11 (difference due to rounding errors)
Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $320,000 $300,000 Income before income tax expense 3,200,000 3,600,000
Determine the number of times interest charges are earned current year and the prior year.
Answer:
Current year=11 times
Prior year=13 times
Explanation:
Calculation for Determining the number of times interest charges are earned current year and the prior year
Using this formula
Times interest earned ratio= Income before Tax expense + Interest expense/Interest expense
Calculation for CURRENT YEAR
Current year =($3,200,000+$320,000)/$320,000
Current year =$3,520,000/$320,000
Current year=11 times
Calculation for PRIOR YEAR
Prior year=($3,600,000+$300,000)/$300,000
Prior year=$3,900,000/$300,000
Prior year=13 times
Therefore the number of times interest charges that are earned in current year will be 11 times and prior year will be 13 times .
In producing jelly beans, 1,000 hours of direct labor were used at a rate of $12 per hour. The standard was 1,100 at $12.25 per hour. What is the direct labor efficiency variance
Answer:
Efficiency variance = $1,225 favorable
Explanation:
Labour efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours allowed for same multiplied by the standard labour rate .
It occurs as result of workers working faster or slower than expected (i.e standard hour )
Hours
standard hours 1, 100
Actual hours 1,000
efficiency varainec in Labour hour 100 favorable
Standard labour rate × $12.25f
Efficiency variance $1,225 favorable
Efficiency variance = $1,225
Suppose that is placed in a savings account at an annual rate of , compounded semiannually. Assuming that no withdrawals are made, how long will it take for the account to grow to
Answer:
6 months
Explanation:
Savings accounts earn compound interest, where the interest is calculated based on the principal and all accumulated interest. Usually, savings accounts average percentage yield is 1% and is compounded onto the principal amount every cycle. These cycles can be annually or semiannually. Therefore since this account is compounded semiannually, the account total will grow by 1% every 6 months.
Myca Corp. has a project with the following cash flows. What is the value of the cash flows today assuming an annual interest rate of 9.5 percent?Year Cash Flow1 $ 1,720 2 2,150 3 2,465 4 2,475 a. $6,189.26b. $7,886.46c. $8,810.00d. $6,962.92e. $7,624.40
Answer:
Total PV= $6,962.93
Explanation:
Giving the following information:
Annual interest rate= 9.5%
Cf1= $1,720
Cf2= $2,150
Cf3= $2,465
Cf4= $2,475
To calculate the present value, we need to use the following formula on each cash flow:
PV= FV/(1+i)^n
Cf1= 1,720/1.095= 1,570.78
Cf2= 2,150/1.095^2= 1,793.12
Cf3= 2,465/1.095^3= 1,877.48
Cf4= 2,475/1.095^4= 1,721.55
Total PV= $6,962.93
On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semi annually on June 30 and December 31 each year.
Required: Assuming the market interest rate on the issue date is 7%, the bonds will issue at $600,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.
Answer:
When the bonds are issued on January 1, 2021
Investment in Bonds $600,000 (debit)
Cash $600,000 (credit)
When the first interest accrues - June 30, 2021
Investment in Bonds $21,000 (debit)
Interest Income $21,000 (credit)
When the first interest accrues - December 31, 2021
Investment in Bonds $21,000 (debit)
Interest Income $21,000 (credit)
Explanation:
Construct the bond amortization schedule using the following parameters extracted from the question.
Pv = - $600,000
Pmt = ($600,000 × 7%) / 2 = $21,000
P/yr = 2
N = 10 × 2 = 20
Fv = $600,000
YTM = 7 %
Bastille Corporation prepares monthly cash budgets.
Here are relevant operating budgets for 2017:
January February
Sales $360,000 $400,000
Purchases 120,000 130,000
Salaries 84,000 81,000
Administration expenses 72,000 75,000
Selling expenses 79,000 88,000
All sales and purchases are on account.
Budgeted collections and disbursement data are given below.
All other expenses are paid in the month incurred.
Administrative expenses include $1,000 of depreciation per month.
Other data:
1. Collections from customers: January $326,000; February $378,000.
2. Payments for purchases: January $110,000; February $135,000.
3. Other receipts: January - collection of December 31, 2016 notes receivable $15,000; February - proceeds from sale of securities $4,000.
4. Other disbursements: February $10,000 cash dividend.
The company's cash balance on January 1, 2017 is expected to be $46,000. The company wants to maintain a minimum cash balance of $40,000.
Required:
Prepare a cash budget for January and February.
Answer and Explanation:
The Preparation of the cash budget for January and February is prepared below:-
Bastille Corporation
Cash budget
for the month of January and February
Particulars January February
Beginning cash balance $46,000 $43,000
Add: Receipts
Customer collection $326,000 $378,000
Notes receivable collection $15,000 $0
Sale of marketable securities 0 $4,000
Total receipts $341,000 $382,000
Total cash available $387,000 $425,000
Less:
Cash payments during the
year
Purchases $110,000 $135,000
Salaries $84,000 $81,000
Administrative expenses $71,000 $74,000
Selling expenses $79,000 $88,000
Dividends 0 $10,000
Disbursement total $344,000 $388,000
Excess of cash
available $43,000 $37,000
Financing
Borrowings 0 $3,000
Repayments 0
Ending cash balance $43,000 $40,000
Note: February beginning balance is the balance of ending cash balance.
"When organizing a meeting agenda, why is it a good idea to discuss old business before introducing new business?"
Answer:
c. It makes sense to complete discussion and reach decisions about old business before tackling new business.
Explanation:
For organizing a meeting agenda first we have to discuss for the old business as it gives the whole picture of the business i.e it is profitable or not that results in increase in sales of the company that reflected completed discussion.
Moreover, the organization also knows how to operates the day to day activities that are related to the functions of management
So it always it is better to make decisions for old business before tackling the new business
Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.
A. True
B. False
Answer:
False
Explanation:
Answer:
False
Explanation:
financing activities are business transactions that are used to fund either company operations or the business expansion expansions.
Some examples of financial activities includes:
1. Borrowing and paying back short-term loans.
2. Borrowing and paying back long-term loans.
receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks are not financing activities.
Customer service representatives (CSRs) often conceal their frustration when serving an irritating customer. This behavior from the CSRs is an example of
Answer:
emotional labor
Explanation:
This form of behavior or concealment of their frustrations demonstrated by the CSRs is an example of emotional labor. When in a workplace, employees are expected to conceal their emotions and instead display compassion to an ill patient, patience and understanding with an angry customer, or even enthusiasm in a long and boring meeting, even if they are fake reactions. These are all forms of emotional labor.
Slide Corporation reported net income for the current year of $370,000 and paid cash dividends of $50,000. Power Company holds 40 percent of the outstanding voting stock of Slide. However, another corporation holds the other 60 percent ownership and does not take Power’s input into consideration when making financing and operating decisions for Slide. What investment income should Power recognize for the current year?
Answer:
$20,000
Explanation:
Since Slide Company does not have any controlling interest which is ability to influence the decision making.
In Power Company, it should recognize the amount of below as dividend income in the current year,
50,000 * 40% = $20,000
Your bank is offering you an account that will pay 23 % interest (an effective two-year rate) in total for a two-year deposit. Determine the equivalent discount rate for the following periods: a. Six months b. One year c. One month (Note: Be careful not to round any intermediate steps less than six decimal places.)
Answer:
Determining equivalent discount rate for the following periods:
a. Six months:
= 23%/24 x 6 = 5.75%
b. One year:
= 23%/24 x 12 = 11.50%
c. One month:
= 23%/24 x 1 = 0.96%
Explanation:
The equivalent discount rate is the rate that is applied as if it were on a period basis, like 24 months or 2 years, 12 months or 1 year, 6 months or 1/2 year, etc. It is a way of determining interest for a period that is more or less than a year. It helps in the calculation of interest so that the rate applied conforms with the period covered by the interest.
During the first nine months of 2013, how much debt did Chevron issue? Please provide your answer in millions without comma separator or decimal (Ex: 343323456)
Answer:
5000 millions
Explanation:
Debt is an important source to finance business operations. The Chevron has issued 5000 million of debt in 2013. The reason for issuing such huge amount of debt is to finance the acquisition of machinery or purchase inventory. This helps the company to grow its business and expand its operations. Debt is an easy and cheap source of finance and mostly organizations prefer issuing debt instead of equity. On the other hand issuing high debt increases the company gearing and risk level.
Elliott Company produces large quantities of a standardized product. The following information is available for its production activities for March. Units Costs Beginning work in process inventory 2,000 Beginning work in process inventory Started 20,000 Direct materials $ 2,500 Ending work in process inventory 5,000 Conversion 6,360 $ 8,860 Status of ending work in process inventory Direct materials added 168,000 Materials—Percent complete 100 % Direct labor added 199,850 Conversion—Percent complete 35 % Overhead applied (140% of direct labor) 279,790 Total costs to account for $ 656,500 Ending work in process inventory $ 84,110 Prepare a process cost summary report for this company showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. Use the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
Answer: kindly check attached picture
Explanation:
Production activities for MARCH:
Beginning work in process inventory = 2000
Units started in March = 20,000
Therefore, total units to account for :
(2,000 + 20,000) units = 22,000 units
Total units transferred out :
Total units to account for - Ending work in process:
(22,000 - 5,000) units = 17,000 units
Check attached picture for further explanation
Suppose, a co-worker has recorded a cash receipt twice and wants you to record a correcting entry that will reverse the mistakes. The correcting entry will record a credit to the Cash account and a debit to the Sales account. Your co-worker has offered to buy you dinner for fixing this mistake. What should you investigate before making a decision about the correcting entry? What is happening to the Cash account? Would you accept a dinner offer from your co-worker for fixing the mistake?
Answer:
1. Investigate the invoices that have been send out (sequencing, their details and amounts) and cross check the invoices that have been paid up. Then for invoices paid up verify that date descriptions and amounts have been entered correctly or as purported by the co-worker.
2. The Cash Account is Decreasing after the correction.
3. It is not professional to accepts such special treats from co-workers for helping them in the workplace.
Explanation:
All financial information must be treated with great caution as reckless acts my constitute to fraud and irregularities.
Exercise Professionalism by doing a bit of background check on error and the intent of the worker. Also allow internal controls to take course in terms of authorization privileges to alter transactions.
Perteet Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials $6.70
Direct labor $3.25
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $3.00
Fixed selling expense $0.70
Fixed administrative expense $0.40
Sales commissions $0.50
Variable administrative expense $0.55
If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:__________
a. $28,000
b. $14,800
c. $21,400
d. $18,100
Answer:
Total overhead cost= $21,400
Explanation:
Giving the following information:
When it produces and sells 5,000 units, its average costs per unit are as follows:
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $3.00
First, we need to calculate the total fixed manufacturing overhead:
Fixed overhead= 3*5,000= $15,000
Now, we can calculate the total overhead cost for 4,000 units.
Total overhead cost= total variable cost + total fixed cost
Total overhead cost= 1.6*4,000 + 15,000
Total overhead cost= $21,400
Daniel acquires a 30 percent interest in the PPZ Partnership from Paolo, an existing partner, for $40,000 of cash. The PPZ Partnership has borrowed $11,000 of recourse liabilities as of the date Daniel bought the interest. What is Daniel's basis in his partnership interest
Answer:
$43,300
Explanation:
Calculation for Daniel's basis in his partnership interest PPZ Partnership
Using this formula
Partnership Interest=Cash +(Recourse liabilities × Interest percentage)
Where,
Cash=$40,000
Recourse liabilities=$11,000
Interest percentage=30%
Let plug in the formula
Partnership Interest=$40,000 +($11,000×30%)
Partnership Interest=$40,000+$3,300
Partnership Interest=$43,300
What Daniel's has as his outside basis will include his $3,300 share of the partnership liabilities which was added to the cash amount of $40,000.
Therefore Daniel's basis in his partnership interest will be $43,300
Where can a food worker wash his hands?
O a. A mop sink
O b. A handwashing sink
O c. A food preparation sink
O d. A three-compartment sink
Answer:
b. A handwashing sink
Explanation:
Food workers with dirty hands are one of the easiest ways to increase the spread of food borne diseases in a country.
Hence, the most effective step to take as a restaurant owner to mitigate the spread of any food related diseases, bacteria or food contamination within the kitchen where the food are being prepared, is to ensure a handwashing sink is installed as well as having a continuously running water system with disinfectants and antiseptic soap placed on the handwashing sink. Therefore, this would simply help food workers to wash their hands as at every given opportunity or when deemed necessary.
According to the Food Drugs and Administration (FDA) code, it is very important that restaurant owners install at least a handwashing sink at the entrance of the kitchen where food are been prepared or inside the kitchen area itself.
Additionally, the FDA prohibits food workers from washing their hands in mop sink, food preparation sink, three-compartment sink, sinks etc.
In a nutshell, a food worker can wash his hands in a handwashing sink so as to avoid contamination of the food being prepared.
A food worker can wash his hands in a handwashing sink. One of the simplest ways to accelerate the spread of foodborne illnesses in a nation is for food workers to have unclean hands. Thus, option C is correct.
Therefore, the best action a restaurant owner can take to prevent the spread of any food-related illnesses, bacteria, or food contamination in the kitchen where the food is being prepared is to make sure a handwashing sink is installed, along with a continuously running water system, disinfectants, and antiseptic soap placed on the handwashing sink.
Therefore, this would only assist food service employees in washing their hands as possible or as needed. The Food Drugs and Administration (FDA) rule mandates that restaurant operators install a handwashing sink at the very least.
Therefore, option C is the ideal selection.
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suppose that the manager of a firm operating in a perfectly competitive market average variable cost reaches its minimum value at
Complete Question:
Suppose that the manager of a firm operating in a perfectly competitive market has estimated the average variable cost function to be:
AVC = 4.0 - 0.0024Q + 0.000006Q^2 Fixed costs are $500.
Requirement:
Average variable cost reaches its minimum value at___ units of output, and the minimum value of average variable cost is $___
Answer:
Average variable cost reaches its minimum value at 200 units of output, and the minimum value of average variable cost is $3.76.
Explanation:
To find the Average Variable Cost we will have to calculate quantity and for that sake we will first of all find the point of intersection of AVC and MC to find the Quantity "Q".
So
AVC * Quantity = Total Variable Cost + Total Fixed Cost
Here
AVC = 4.0 - 0.0024Q + 0.000006Q^2
Fixed costs are $500
Total Variable Cost is TVC
Quantity is Q here
By putting values, we have:
(4.0 - 0.0024Q + 0.000006Q^2) * Q = TVC + 500
4Q - .0024Q^2 + .000006Q^3 = TVC + 500
By rearranging the above formula, we have:
TVC = 4Q - .0024Q^2 + .000006Q^3 - 500
By applying derivation rules, we have:
dTC/dQ = 4 - 0.0048Q + 0.000018Q^2
Now this equation is Marginal cost equation.
At the point of intersection of AVC and MC, both equations will equal to each other and thus we can find Q.
Mathematically,
4 - 0.0024Q + 0.000006Q^2 = 4 - .0048Q + .000018Q2
Cancelling 4 on both sides, and netting off the equation, we have:
0.0024Q = .000012Q2
1 = .000012Q2 / 0.0024Q
1 = 0.005Q
Q = 1/ 0.005 = 200 Units
By putting value of Q in AVC equation given above, we have:
AVC = 4 - 0.0024*200 + 0.000006*(200)^2
AVC = 4 - 0.48 + 0.24 = $3.76
Yasmin offers to landscape Bert's property for $2,000. Two days after making the offer, Yasmin changes her mind and mails Bert a letter revoking her offer. The next day, Bert, who has not received Yasmin's letter, calls Yasmin and accepts her offer. Does a contract exist?
Answer:
Yes, a contract exists. Yasmin made a valid offer to Bert, and Bert accepted the offer before he was notified that it was revoked. In order for a revocation to be valid, the offeree (Bert) must be notified about it. If the offeree has accepted the offer before he/she is notified about the revocation, the acceptance is valid and the revocation is not valid.
Squirrel Tree Services reports the following amounts on December 31.
Assets Liabilities and Stockholders’ Equity
Cash $ 8,300 Accounts payable $ 11,500
Supplies 2,400 Salaries payable 4,100
Prepaid insurance 4,100 Notes payable 26,000
Building 78,000 Common stock 40,000
Retained earnings 11,200
In addition, the company reported the following cash flows.
Cash Inflows Cash Outflows
Customers $ 96,000 Employee salaries $ 40,000
Borrow from the bank (note) 38,000 Supplies 22,000
Sale of investments 35,800 Dividends 15,500
Purchase building 98,000
Required:
1. Prepare a balance sheet.
2. Prepare a statement of cash flows. (Cash outflows and decreases in cash should be indicated by a minus sign.)
1. The preparation of the balance sheet is shown below.
2. The preparation of the cash flow statement is shown below.
1. Balance sheet:Squirrel Tree Services
Balance Sheet
For the year ended 31st December
Assets Amount Liabilities Amount
Cash $8,300 Accounts payable $11,500
Supplies $2,400 Salary payable $4,100
Prepaid insurance $4,100 Notes payable $26,000
Building $78,000
Total liabilities $41,600
Common stock $40,000
Retained earning $11,200
Total stockholder
equity $51,200
Total liabilities and
Total assets $92,800 stockholder equity $92,800
B. Cash flow statement:
Squirrel Tree Services
Cash flow
For the year ended 31st December
Particulars Amount
Cash flow from operating activities
Cash inflow from customers $96,000
Cash outflow for salaries ($40,000)
Cash outflow for supplies ($22,000)
Net cash flow from operating activities $34,000
Cash flow from investing activities
Sale of investment $35,800
Purchase of building ($98,000)
Net cash flow from investing activities ($62,200)
Cash flow from financing activities
Borrow from bank $38,000
Dividends ($15,500)
Net cash flow financing activities $22,500
Net increase in cash ($5,700)
Beginning cash of the year $15,200
Ending cash of the year $9,500
Working note
we deduct the cash inflow from cash outflow and add cash to reach the beginning cash of the year.
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Reunion Corporation provides the following information. March 31, 2018 March 31, 2019 Net Income Preferred Dividends Total Stockholders' Equity Stockholders' Equity attrbutable to Preferred $425,500 $4.380,00 $5,1320 $5,132,000 Stock Number of Common Shares Outstanding 294464 195,1 Based on the information provided above, compute the earnings per share of Reunion Corporation as of March 31, 2019. (Round any intermediate calculations and your final answer to the nearest cent.)A) $1.22 B) $2.18 C) $1.74 D) $1.46
Answer:
C) $1.74
Explanation:
2018 2019
Net Income $358,000 $425,500
Preferred Dividends $0 $0
Total Stockholders' Equity Stockholders' $4,380,000 $5,132,000
Equity attributable to Preferred Stock $0 $0
Number of Common Shares Outstanding 294,464 195,168
earnings per share = (net income - preferred dividends) / average outstanding shares
net income 2019 = $425,500preferred dividends 2019 = $0average number of common stocks = (294,464 + 195,168) / 2 = 244,816EPS = $425,500 / 244,816 = $1.738 ≈ $1.74
" By adding new product lines like MP3 and X-Box beyond their core business of computer operating systems, Microsoft primarily benefits by: "
Answer:
creating diversification and reducing risk
Explanation:
By adding these new product lines Microsoft primarily benefits by creating diversification and reducing risk. Adding these new products allows Microsoft to enter new markets in which they can implement different strategies in order to dominate those markets with their new products and hopefully profit largely from them. This in term also provides a safety net in which, if one product fails they still have other products profiting that can make up for the loss.
The stockholders' equity of TVX Company at the beginning of the day on February 5 follows.
Common stock—$10 par value, 150,000 shares
authorized, 62, 000 shares issued and outstanding $620,000
Paid—in capital in excess of par value, common stock 423,000
Retained earnings 552,000
Total stockholders ' equity 1595,000
On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $31 per share on February 5 before the stock dividend.
Required:
Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity.)
Answer:
TVX Company
Stockholders Equity Section of the Balance Sheet, February 28
Common stock $632,400
Paid in capital in excess of par value, Common stock $449,040
Retained earnings $513,560
Total Stockholders Equity $1,595,000
Workings
Common Stock
= Common Stock + Dividends Declared
= 620,000 + ( 2% * 62,000 shares * $10 par value)
= 620,000 + 12,400
= $632,400
Paid in capital in excess of par value, Common stock
Dividends were declared based on current market value of $31 not par value of $10 so the differnce will be catered for here.
= Balance + Dividends Declared
= 423,000 + (2% * 62,000 * $21 which is differnce between par value and market value)
= 423,000 + 26,040
= $449,040
Retained earnings
= Retained Earnings - Dividends distributed
= 552,000 - (2% * 62,000 * $31)
= 552,000 - $38,440
= $513,560
Xminus−Industries manufactures 3minus−D printers. For each unit, $ 3 comma 000$3,000 of direct material is used and there is $ 2 comma 000$2,000 of direct manufacturing labor at $ 20$20 per hour. Manufacturing overhead is applied at $ 25$25 per direct manufacturing labor hour. Calculate the profit earned on 5050 units if each unit sells for $ 9 comma 000$9,000.
Answer:
$75,000
Explanation:
The computation of profit earned is shown below:-
Sales revenue = $ 9,000 × 50 = $450,000
Direct material = $3,000 × 50 = $ 150,000
Direct labor = $2,000 × 50 = $100,000
Now
Number of direct labor hour per unit is
= $2,000 ÷ $20
= $100
Manufacturing overhead per unit is
= $25 × $100
= $2,500
So,
Manufacturing overhead for 50 units is
= $2,500 × 50
= $125,000
And, finally
Profit = Sales revenue - Direct material - Direct labor - Manufacturing overhead
= $450,000 - $100,000 -$150,000 - $125,000
= $75,000
Check my work Check My Work button is not enabled Item 1Item 1 1.11 points QS 7-9 Identifying journal of entry LO P1, P2, P3, P4 Peachtree Company uses sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Identify the journal in which each of the transactions should be recorded.
Answer:
Purchases and Sales made on account/ bought on credit will go to the Purchases or Sales journal respectively. When transactions are done in cash, payments go to the Cash Payments Journal and cash received goes to the Cash Receipts Journal.
May 1 - Purchase Journal. May 8 - Sales Journal. May 14 - Purchases Journal May 17 - Purchase JournalMay 24 - Cash Receipt JournalMay 28 - Cash Payments JournalMay 29 - Cash Payments JournalWhat is the purpose of internal controls? Managers utilize internal controls as a basis of employee performance reviews. Internal controls are used by managers as a way to reduce outstanding customer balances. Companies use strong internal controls to guarantee that loss is eliminated. To help managers know if the business is receiving the assets and services it has paid for.
Answer:
Companies use strong internal controls to guarantee that loss is eliminated.
Explanation:
Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.
The purpose of internal controls is that companies use strong internal controls to guarantee that loss is eliminated as there's an accurate and reliable accounting system.
An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.
Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.
Answer: To help managers know if the business is receiving the assets and services it has paid for.
Explanation: