Answer:
a. Sales January February March
Cash sales $47,000 $52,170 $57,908.7
Sales on account $103,000 $114,330 $126,906.3
Total budgeted sales $150,000 $166,500 $184,815
Workings
February Cash sales: 47,000*11% = $47,000 + $5170 = $52,170
February Sales on account: $103,000*11% = $103,000 + $11,330 = $114,330
March Cash sales: $52,170 * 11% = $52,170 + $5738.70 = $57,908.7
March Sales on account: $114,330 * 11% = $114,330 + $12,576.3 = $126,906.3
b. Sales revenue in first quarter = $150,000 + $166,500 + $184,815
Sales revenue in first quarter = $501,315
BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn’t equipped to do. Estimates regarding each machine are provided below.
Machine A Machine B
Original cost $78,200 $182,000
Estimated life 8 years 8 years
Salvage value 0 0
Estimated annual cash inflows $19,800 $39,600
Estimated annual cash outflows $5,130 $10,180
Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round answer for present value to 0 decimal places, e.g. 125 and profitability index to 2 decimal places, e.g. 10.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
Machine A Machine B
Net present value
Profitablitly index
Machine A Machine B Net present value Profitability index Which machine should be purchased?
Answer:
1. Machine A
Net present value $2,996
Profitability index 1.04
Machine B
Net present value($19,166)
Profitability index = 0.89
B. Machine A
Explanation:
Calculation for the net present value and profitability index of each machine
MACHINE A
NET PRESENT VALUE
Cash Flows×9% Discount Factor=Present value
Present value of net annual cash flows($19,800-$5,130)×5.53482 =$81,196
Present value of salvage value$0 ×0.50187 =$0 $81,196
Capital investment $78,200
Net present value $2,996
($81,196-$78,200)
MACHINE APROFITABILITY INDEX
Profitability index = $81,196 / $78,200
Profitability index = 1.04
MACHINE A
NET PRESENT VALUE
Cash Flows×9% Discount Factor=Present value
Present value of net annual cash flows ($39,600-$10,180) ×5.53482 =$162,834
Present value of salvage value$0 ×0.50187 =$0 $162,834
Capital investment $182,000
Net present value($19,166)
Profitability index = $162,834 / $182,000
Profitability index = 0.89
Therefore the net present value and profitability index of each machine are :
Machine A
Net present value $2,996
Profitability index 1.04
Machine B
Net present value($19,166)
Profitability index = 0.89
2. Based on the above calculation for both Machine And Machine B we can see that Machine B net present value is negative while, profitability index is also low which means that Machine B should not be Purchased and MACHINE A SHOULD BE PURCHASED.
Forever Ready Company expects to operate at 88% of productive capacity during May. The total manufacturing costs for May for the production of 29,040 batteries are budgeted as follows:
Direct materials $225,100
Direct labor 82,800
Variable factory overhead 23,156
Fixed factory overhead 46,000
Total manufacturing costs $377,056
The company has an opportunity to submit a bid for 2,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May or increase the selling or administrative expenses.
Required:
What is the unit cost which Forever Ready Company should not go in bidding on the government contract? Round your answer to two decimal places.
Answer:
$11.40
Explanation:
Calculation to determine the unit cost which Forever Ready Company should not go in bidding on the government contract
FOREVER READY COMPANY UNIT COST
Direct materials $7.75
($225,100/29,040)
Direct labor $2.85
($82,800/ 29,040)
Variable factory overhead $0.80
($23,156/ 29,040)
Total Per unit cost $11.40
($7.75+$2.85+$0.80)
Therefore the unit cost which Forever Ready Company should not go in bidding on the government contract is $11.40
Friar's Corporation expects to sell 22,000 pool cues for $12 each. Direct materials costs are $3, direct manufacturing labor is $4, and manufacturing overhead is $0.84 per pool cue. The following inventory levels apply to 2019: Beginning inventory Ending inventory Direct materials 33,000 units 33,000 units Work-in-process inventory 0 units 0 units Finished goods inventory 1,400 units 2,500 units 21) On the 2019 budgeted income statement, what amount will be reported for cost of goods sold
Answer:
see explanation
Explanation:
Cost of goods sold = Opening Finished Goods + Cost of Goods Manufactured - Ending Finished Goods
Therefore apply the 22,000 to determine the Cost of Goods Manufactured and then the Cost of goods sold.
State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: Retired $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000. Sold 20,000 shares of $5 par common stock for $22 per share. Sold equipment with a book value of $55,800 for $60,000. Purchased land for $650,000 cash. Purchased a building by paying $50,000 cash and issuing a $450,000 mortgage note payable. Sold a new issue of $500,000 of bonds at 98. Purchased 10,000 shares of $40 par common stock as treasury stock at $50 per share. Paid dividends of $1.50 per share. There were 1,000,000 shares issued and 120,000 shares of treasury stock.]
Amount
a. $
b. $
c. $
d. $
e. $
f. $
g. $
h. $
Answer:
A. Effect=CASH PAYMENT
Amount=$411,000
B. Effect=CASH RECEIPT
Amount=$440,000
C. Effect= CASH RECEIPT
Amount=$60,000
D. Effect= CASH PAYMENT
Amount=$650,000
E. Effect= CASH PAYMENT
Amount=$50,000
F.Effect=CASH RECEIPT
Amount=$490,000
G. Effect= CASH PAYMENT
Amount=$400,000
H. Effect=CASH PAYMENT
Amount=$1,320,000
Explanation:
Calculation to State the effect of cash receipt or payment and the amount
A. Based on the information given the effect will be CASH PAYMENT of the amount of $411,000
Effect= CASH PAYMENT
Amount=$411,000
B. Based on the information given the effect will be CASH RECEIPT of the amount of $440,000(20,000*$22))
Effect= CASH RECEIPT
Amount= $440,000
(20,000*$22)
C. Based on the information given the effect will be CASH RECEIPT of the amount of $60,000
Effect=CASH RECEIPT
Amount=$60,000
D. Based on the information given the effect will be CASH PAYMENT of the amount of $650,000
Effect=CASH PAYMENT
Amount= $650,000
E. Based on the information given the effect will be CASH PAYMENT of the amount of $50,000
Effect=CASH PAYMENT
Amount=$50,000
F. Based on the information given the effect will be CASH RECEIPT of the amount of $490,000 (98%*$500,000)
Effect=CASH RECEIPT
Amount=$490,000
(98%*$500,000)
G. Based on the information given the effect will be CASH PAYMENT of the amount of $400,000 (10,000*$40)
Effect=CASH PAYMENT
Amount=$400,000
(10,000*$40)
H. Based on the information given the effect will be CASH PAYMENT of the amount of $1,320,000 (1,000,0000*$1.50)-(120,000*$1.50)]
Effect= CASH PAYMENT
Amount=$1,320,000
[(1,000,0000*$1.50)-(120,000*$1.50)]
=$1,500,000-$180,000
=$1,320,000
Chelsea, Inc. uses the job costing method and uses direct labor hours as the allocation base. In 2016, the company estimated that they would incur 250,000 direct labor hours and total overhead costs of $2,500,000. Actual overhead costs for Job 3489 were $275,000 and actual direct labor hours were 28,000. Which of the following represents the MOH allocated to Job 3489?
a. Predetermined MOH rate= total estimated manufacturing overhead costs/ total estimated amount of the allocation base
b. $250,000/ 25,000 DLH= $10
c. MOH allocated to job= predetermined MOH rate * actual amount of allocation base used by the job
d. $10 * 28,000 DLH= $280,000
Answer:
Allocated MOH= 10*28,000
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,500,000 / 250,000
Predetermined manufacturing overhead rate= $10 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 10*28,000
Allocated MOH= $280,000
Question 3 of 10
A typical point-of-sale display features products that are likely to be
O A. luxury goods
O B. sophisticated electronics
O C. impulse purchases
O D. display samples
SUBMIT
Answer:
C. impulse purchases
Explanation:
I just took the test
it's c. impulse purchases
Mr. and Mrs. Kim, married filing jointly, own a principal residence and a vacation home. Each residence is subject to a mortgage that qualifies as acquisition debt, and both mortgages were incurred before December 15, 2017. This year, the mortgage holders provided the following information: Mortgage Interest Paid $ 45,000 26,300 Average Balance of Mortgage $ 969,800 361,000 Principal residence Vacation home
Compute Mr. and Mrs. Kim's qualified residence interest. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.)
Qualified residence interest________
Answer:
$53,577
Explanation:
Computation for Mr. and Mrs. Kim's qualified residence interest
Using this formula
Qualified residence interest=(Acquisition debt ÷ Total debt) ×Total interest
Where,
Total Acquisition=$ 969,800+ 361,000
Total Acquisition=$1,330,800
Total debt =$ 45,000 +26,300
Total debt=$71,300
Let plug in the formula
Qualified residence interest=(1,000,000÷$1,330,800)×$71,300
Qualified residence interest=$53,577
Therefore the Qualified residence interest is $53,577
1. Prepare general journal entries for the transactions.
Mitchell Parts Co. had the following plant asset transactions during the year:
1. Assets discarded or sold:
Jan. 1 Motor #12, which had a cost of $2,890 and accumulated depreciation of
$2,890, was discarded.
8 Motor #8, which had a cost of $4,440 and accumulated depreciation of
$4,020, was sold for $260.
14 Motor #16, which had a cost of $5,730 and accumulated depreciation of
$5,490, was sold for $470.
2. Assets exchanged or traded in:
Feb. 1 Motor #6, which had a cost of $5,860 and accumulated depreciation of
$4,590, was traded in for a new motor (#22) with a fair market value of
$6,800. The old motor and $5,300 in cash were given for the new motor.
9 Motor #9, which had a cost of $5,420 and accumulated depreciation of
$4,940, was traded in for a new motor (#23) with a fair market value of
$6,450. The old motor and $6,170 in cash were given for the new motor.
Answer:
1. Accumulated Depreciation (Dr.) $2,890
Motor #12 (Cr.) $2,890
2. Cash (Dr.) $260
Accumulated Depreciation (Dr.) $4,020
Loss on Sale (Dr.) $160
Motor #8 (Cr.) $4,440
3. Cash (Dr.) $470
Accumulated Depreciation (Dr.) $5,490
Gain on Sale (Cr.) $230
Motor #16 (Cr.) $5,730
Explanation:
1. New Motor #22 (Dr.) $6,800
Accumulated Depreciation (Dr.) $4,590
Gain on Sale (Cr.) $230
Motor #6 (Cr.) $5,860
Cash (Cr.) $5,300
2. New Motor #23 (Dr.) $6,450
Accumulated Depreciation (Dr.) $4,940
Loss on Sale (Dr.) $200
Motor #9 (Cr.) $5,420
Cash (Cr.) $6,170
Compute the payback period for each of these two separate investments:
a. A new operating system for an existing machine is expected to cost $250,000 and have a useful life of four years. The system yields an incremental after-tax income of $72,115 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000.
b. A machine costs $200,000, has a $13,000 salvage value, is expected to last eight years, and will generate an after-tax income of $39,000 per year after straight-line depreciation.
Answer:
A. 1.89 years
B. 2.33 years
Explanation:
According to the scenario, computation of the given data are as follows,
(A) After-tax income = $72,115
Expected cost = $250,000
Useful life = 4 years
Salvage value = $10,000
Depreciation Value = ($250,000 - $10,000) ÷ 4 = $60,000
Annual net cashflow = After tax income + Depreciation
= $72,115 + $60,000 = $132,115
Payback Period = Machine expected cost ÷ Annual net cash flow
= $250,000 ÷ $132,115
= 1.89 years
(B) After-tax income = $39,000
Machine cost = $200,000
Useful life = 8 years
Salvage value = $13,000
Depreciation value = ($200,000 - $13,000) ÷ 4 = $46,750
Annual net cashflow = After tax income + Depreciation
= $39,000 + $46,750 = $85,750
Payback Period = Machine expected cost ÷ Annual net cash flow
= $200,000 ÷ $85,750
= 2.33 years
Andy derives utility from two goods, potato chips (Qp) and Cola (Qc). Andy receives zero utility unless he consumes some of at least one good. The marginal utility that he receives from the two goods is given as follows:
Qp MUp Qc MUc
1 12 1 24
2 10 2 22
3 8 3 20
4 6 4 18
5 4 5 16
6 2 6 14
7 -2 7 12
8 4 8 10
Refer to Scenario, what is the total utility that Andy will receive if he consumes 5 units of potato chips (Qp) and no Cola drink (Qc)?
Answer:
TU = 40
Explanation:
Total utility is the sum of marginal utility obtained by consuming different units of the good. So at 5 units of potato chips (Qp) and 0 units of Cola drink (Qc) , we can find total utility by adding marginal utility till 5th unit of Qp.
[tex]Total utility = 12 + 10 + 8 + 6 + 4 \\ = 40[/tex]
Thus, total utility from 5 units of potato chips and no cola is 40 utils.
The total utility that Andy will receive if he consumes 5 units of potato chips (Qp) and no Cola drink (Qc) is 40.
The calculation is as follows:= 12 + 10 + 8 + 6 + 4
= 40 utils
Therefore we can conclude that The total utility that Andy will receive if he consumes 5 units of potato chips (Qp) and no Cola drink (Qc) is 40.
Learn more: brainly.com/question/16911495
On January 1, 2020, Gerald received his 50% profits and capital interest in High Air, LLC in exchange for $2,000 in cash and real property with a $3,000 tax basis secured by a $2,000 nonrecourse mortgage. High Air reported a $15,000 loss for its 2020 calendar year. How much loss can Gerald deduct, and how much loss must he suspend if he only applies the tax basis loss limitation
Answer:
$4,000;$3,500
Explanation:
Calculation to determine How much loss can Gerald deduct, and how much loss must he suspend if he only applies the tax basis loss limitation
Calculation for How much loss can Gerald deduct
Gerald's loss Deduction = [$2,000 + $3,000 - $2,000 + (50% × $2,000)]
Gerald's loss Deduction =[$2,000 + $3,000 - $2,000 + $1,000]
Gerald's loss Deduction=$4,000
Calculation for how much loss must he suspend
Loss to Suspend=(50%*$15,000)-$4,000
Loss to Suspend=$7,500-$4,000
Loss to Suspend=$3,500
Therefore the amount of loss that Gerald can deduct is $4,000 and the amount of loss that he must suspend if he only applies the tax basis loss limitation is $3,500
On August 1, Sparky assigned $100,000 of the accounts receivable to B Bank and received 90% of the value of the accounts assigned less a finance fee of $1,000. B Bank charges 1% per month on the outstanding loan balance. Cash collections from assigned accounts are to be remitted monthly to B Bank to cover both principal and interest payments. During August Sparky collected $30,000 in cash of the accounts receivable assigned and also accepted sales returns of $3,000 from assigned accounts. During September, Sparky collected $50,000 in cash on accounts assigned and, in addition, wrote off $2,000 of assigned accounts receivable as uncollectible. As a result of these transactions, determine the ending balance in the Accounts Receivable Assigned and Note Payable.
Answer and Explanation:
The computation of the ending balance in the Accounts Receivable Assigned and Note Payable is shown below:
For account receivable assigned:
Beginning account receivable $100,000
cash collected -$300,000
Sales returns - $3,000
Cash collected during September -$50,000
Uncollectible account receivable -$2,000
Ending balance of the account receivable $15,000
For note payable
Beginning balance (90% of $100,000) $90,000
Interest on the loan (1% of $90,000) $900
Cash paid during the August -$30,000
Beginning balance of September $60,900
Interest paid (1% of $60,900) $609
Cash paid during September -$50,000
Ending balance $11,509
Why do they say Accounting Equation is the basis for the preparation of statement of financial position in accordance to IFRS financial statement presentation ?
Answer:
The Statement of Financial Position (SFP) or Balance Sheet, shows the assets of the company on one side and then the way the funding that enabled these assets to be acquired on the other.
This is the basis of the Accounting equation which is:
Assets = Equity + Liability
One one side of the (SFP), you have the assets shown. These assets are added up to find the Net Total Assets.
The other side of the (SFP) will have the Equity and the liabilities listed. These are then added up too and they are to be equivalent to the amount of Assets.
This would therefore prove the equation that when you add up Equity and Liabilities, you get Assets.
Green Manufacturing, Inc., plans to announce that it will issue $2 million of perpetual debt and use the proceeds to repurchase common stock. The bonds will sell at par with a coupon rate of 6%. Green is currently an all-equity firm worth $6.3 million with 400,000 shares of common stock outstanding. After the sale of the bonds, Green will maintain the new capital structure indefinitely. Green currently generates annual pretax earnings of $1.5 million. This level of earnings is expected to remain constant in perpetuity. Green is subject to a corporate tax rate of 40%.
A) What is the expected return on Green?s equity before the announcement of the debt issue?
B) Construct Green's market value balance sheet before the announcement of the debt issue. What is the price per share of the firm's equity?
C) Construct Green's market value balance sheet immediately after the announcement of the debt issue. What is Green's stock price per share immediately after the repurchase announcement?
D) How many shares will Green purchase as a result of the debt issue? How many shares of common stock will remain after the repurchase?
E) Construct a market value balance sheet after the restructuring. What is the required return on Green's equity after the restructuring?
Answer: See explanation and attachment
Explanation:
a. Return on equity:
= Pre tax earnings × (1 - Tax rate) / Total equity
= 1.5 million × (1 - 40%) / 6.3 million
= 1.5 million × (1 - 0.4) / 6.3 million
= (1.5 million × 0.6) / 6.3 million
= 0.9 million / 6.3 million
= 14.29%
b. Check attachment for Green's market value balance sheet before the announcement of the debt issue.
The price per share of the firm's equity will be:
= Equity / Number of shares
= $6300000 / 400000
= $15.75 per share
c. Check Green's market value balance sheet immediately after the announcement of the debt issue.
Green's stock price per share immediately after the repurchase announcement will be calculated thus:
We need to know the value of tax shield which will be:
= 40% × $2,000,000
= $800,000
Value of firm = $6,300,000 + $800,000
= $7,100,000
Price per share will be:
= Equity / Number of shares
= 7100000 / 400000
= $17.75 per share
d. The number of shares that Green will purchase as a result of the debt issue will be:
= Debt issue / Price per share
= 2,000,000 / 17.57
= 112,676
The number of shares of common stock that will remain after the repurchase will be:
= 400000 - 112676
= 287324
e. Check attachment for market value balance sheet after the restructuring.
The required return on Green's equity after the restructuring will be:
= 14.29% + (2000000/5100000) × (14.29% - 6%) × (1 - 40%)
= 14.29% + 0.3921 × 8.29% × 0.6
= 14.29% + 1.95%
= 16.24%
The following is a December 31, 2018, post-closing trial balance for Almway Corporation.
Account Title Debits
Credits
Cash 77,000
Investments 142,000
Accounts Receivable 76,000
Investments 216,000
Prepaid insurance (for the next 9 Months) 6,000
Land 122,000
Buildings 436,000
Accumulated Depreciation-Buildings 116,000
Equipment 126,000
Accumulated Depreciation-Equipment 76,000
Patents (net of amortization) 26,000
Accounts Payable 107,000
Notes Payable 178,000
Interest Payable 36,000
Bonds Payable 256,000
Common Stock 348,000
Retained Earnings 110,000
Totals 1,227,000 1,227,000
Additional information:_______.
The investment in equity securities account includes an investment in common stock of another corporation of $36,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year. The land account includes land which cost $31,000 that the company has not used and is currently listed for sale. The cash account includes $21,000 restricted in a fund to pay bonds payable that mature in 2024 and $29,000 restricted in a three-month Treasury bill. The notes payable account consists of the following: a $36,000 note due in six months. a $56,000 note due in six years. a $56,000 note due in five annual installments of $11,200 each, with the next installment due February 15, 2022. The $66,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $9,000. The common stock account represents 106,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized.
Required:
Prepare a classified balance sheet for the Almway Corporation at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
Almway Corporation
Classified Balance Sheet
As of December 31, 2018
Assets
Current Assets:
Cash $27,000
Restricted fund (treasury bill) 29,000
Marketable Investments 142,000
Accounts Receivable 85,000
Allowance for Uncollectibles (9,000)
Short-term investment 180,000
Prepaid insurance
(for the next 9 Months) 6,000 $460,000
Long-term Assets:
Restricted fund (bonds payable) 21,000
Long-term investment 36,000
Land for sale 31,000
Land in use 91,000
Buildings 436,000
Accumulated Depreciation (116,000)
Equipment 126,000
Accumulated Depreciation (76,000)
Patents (net of amortization) 26,000 $575,000
Total assets $1,035,000
Liabilities and Equity
Current Liabilities:
Accounts Payable 107,000
Short-term notes payable 47,500
Interest Payable 36,000 $190,500
Long-term liabilities:
Long-term notes payable 130,500
Bonds Payable 256,000 $386,500
Total liabilities $577,000
Equity:
Common Stock 348,000
Retained Earnings 110,000 $458,000
Total liabilities and equity $1,035,000
Explanation:
a) Data and Calculations:
Almway Corporation
Trial Balance as of December 31, 2018
Account Title Debits Credits
Cash 77,000
Investments 142,000
Accounts Receivable 76,000
Investments 216,000
Prepaid insurance
(for the next 9 Months) 6,000
Land 122,000
Buildings 436,000
Accumulated Depreciation-Buildings 116,000
Equipment 126,000
Accumulated Depreciation-Equipment 76,000
Patents (net of amortization) 26,000
Accounts Payable 107,000
Notes Payable 178,000
Interest Payable 36,000
Bonds Payable 256,000
Common Stock 348,000
Retained Earnings 110,000
Totals 1,227,000 1,227,000
Additional Information and Analysis:
a. Investments in equity 216,000:
Short-term investment 180,000
Long-term investment 36,000
b. Land 122,000:
Land for sale 31,000
Land in use 91,000
c. Cash 77,000:
Restricted fund (bonds payable) 21,000
Restricted fund (treasury bill) 29,000
Cash balance 27,000
d. Notes Payable 178,000:
Short-term notes payable 36,000 + 11,500 = $47,500
Long-term notes payable 130,500
e. Accounts Receivable 76,000:
Allowance for uncollectibles 9,000
Accounts receivable 85,000
f. Common Stock 348,000:
Authorized shares, 500,000
106,000 Issued shares, no par 348,000
Almway Corporation
Adjusted Trial Balance as of December 31, 2018
Account Title Debits Credits
Cash 27,000
Restricted fund (bonds payable) 21,000
Restricted fund (treasury bill) 29,000
Marketable Investments 142,000
Accounts Receivable 85,000
Allowance for Uncollectibles 9,000
Short-term investment 180,000
Long-term investment 36,000
Prepaid insurance
(for the next 9 Months) 6,000
Land for sale 31,000
Land in use 91,000
Buildings 436,000
Accumulated Depreciation-Buildings 116,000
Equipment 126,000
Accumulated Depreciation-Equipment 76,000
Patents (net of amortization) 26,000
Accounts Payable 107,000
Short-term notes payable 47,500
Long-term notes payable 130,500
Interest Payable 36,000
Bonds Payable 256,000
Common Stock 348,000
Retained Earnings 110,000
Totals 1,236,000 1,236,000
Policy is designed to shift the aggregate B) curve by the federal government changing its C) and D) policies. An E) fiscal policy would attempt to speed up the economy by shifting this curve to the F) . This would be accomplished by the government spending G) than it took received in taxes. Such a policy would result in a budgetary H) . Such a policy would be employed to get the economy out of a I) and fight the undesirable economic phenomenon of J).
Answer:
There are no options included so I will give the answers as beat I can based on economic knowledge.
FISCAL policy is designed to shift the aggregate DEMAND curve by the federal government changing its SPENDING and TAXATION policies.
The government can influence the economy through fiscal policy. It does this by changing its taxation and spending policies to either increase economic growth or reduce overheating.
An EXPANSIONARY fiscal policy would attempt to speed up the economy by shifting this curve to the RIGHT. This would be accomplished by the government spending MORE than it took received in taxes. Such a policy would result in a budgetary DEFICIT .
With an expansionary policy, the government would increase it's spending such that it would be more than the taxation imposed. With the government spending more than they brought it from taxes, a budget deficit will result.
Such a policy would be employed to get the economy out of a RECESSION and fight the undesirable economic phenomenon of UNEMPLOYMENT.
When the economy is going through a recession, the economy will be facing a decline so in order to renew growth, the government would spend more to bring it out of a decline and therefore prevent or reduce unemployment.
33. A tripeptide has
A. 3 amino acids and 1 peptide bond
B. 3 amino acids and 2 peptide bond
6.3 amino acids and 3 peptide bond
D. 3 amino acids and 4 peptide bond I need the answer
Answer: Probably B.
Explanation:
Description: A tripeptide is a peptide derived from three amino acids joined by two or sometimes three peptide bonds. As for proteins, the function of peptides is determined by the consistuent amino acids and their sequence. The simplest tripeptide is glycylglycylglycine.
Sloan Company uses its own executive charter plane that originally cost $800,000. It has recorded straight-line depreciation on the plane for six full years, with an $80,000 expected salvage value at the end of its estimated 10-year useful life. Sloan disposes of the plane at the end of the sixth year.
a. At the disposal date, what is the (1) accumulated depreciation and (2) net book value of the plane?
b. Prepare a journal entry to record the disposal of the plane assuming that the sales price is
1. Cash equal to the book value of the plane.
2. $195,000 cash.
3. $600,000 cash.
Answer: See explanation
Explanation:
a1. At the disposal date, the accumulated depreciation will be:
= ($800,000 - $80,000)/10 × 6
= $720,000/10 × 6
= $72000 × 6
= $432,000
a2) The net book value of the plane will be:
= Cost of plane - Accumulated depreciation
= $800000 - $432,000
= $368,000
2. The journal entry when the Cash equal to the book value of the plane will be:
Debit Cash $368,000
Debit accumulated depreciation $432,000
Credit Plane $800,000
2. $195,000 cash.
Debit Cash $195,000
Debit loss on disposal $173,000
Debit accumulated depreciation $432,000
Credit Plane $800,000
3. $600,000 cash.
Debit Cash $600,000
Debit Accumulated depreciation $432,000
Credit Plane $800,000
Credit Gain on disposal $232000
Assume that you believe exchange rate movements are mostly driven by purchasing power parity. The U.S. and Canada presently have the same nominal (quoted) interest rate. The central bank of Canada just made an announcement that causes you to revise your estimate of Canada's real interest rate upward. Nominal interest rates were not affected by the announcement. Do you expect that the Canadian dollar to appreciate, depreciate, or remain the same against the dollar in response to the announcement
Answer:
The Canadian dollar would appreciate
Explanation:
Real interest rate is nominal interest rate less inflation rate
exchange rate is the rate at which one currency is exchanged for another currency
if the real interest rate of the canadian dollar increases, there would be an increase in demand for canadian dollars. As a result, the demand for canadian dollars would increase. the increase in demand would lead to an appreciation of the canadian dollar
The following facts relate to Oriole Corporation.
1. Deferred tax liability, January 1, 2020, $41,600.
2. Deferred tax asset, January 1, 2020, $0.
3. Taxable income for 2020, $98,800.
4. Pretax financial income for 2020, $104,000.
5. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $249,600.
6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $36,400.
7. Tax rate for all years, 20%.
8. The company is expected to operate profitably in the future.
1. Compute income taxes payable for 2020:
2. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.
3. Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes."
Answer: See explanation
Explanation:
a. The income taxes payable for 2020 will be:
= Taxable income for 2020 × Tax rate
= $98,800 × 20%
= $98,800 × 0.2
= $19760
b. The journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020 goes thus:
Income tax expense:
= Pretax financial income for 2020 × Tax rate
= $104,000 × 20%
= $104,000 × 0.2
= $20800
The income taxes payable = $19760
Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts = $249,600
Deferred tax liability required at December 31, 2020:
= $249,600 × 20%
= $49920
Deferred tax liability, January 1, 2020 = $41600
Therefore, the increase in deferred tax liability in 2020 will be:
= $49920 - $41600
= $8320
Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts = $36,400
Deferred tax assets balance required at December 31, 2020 will be:
= $36,400 × 20%
= $36400 × 0.2
= $7280
Deferred tax asset, January 1, 2020 = $0
Therefore, the increase in the deferred tax asset in 2020 will be:
= $7280 - 0
= $7,280
Therefore, the journal entry will be:
Debit Income Tax Expense = $20800
Debit Defered Tax Asset = $7,280
Credit Income Tax Payable = $19760
Credit Defered Tax Liability = $8320
(To record income tax expense, defered assets and defered liabilities)
c. The income tax expense section of the income statement for 2020 will be:
Income before Income Tax = $104000
Less: Income Tax expense - Current = $19760
Less: Income Tax expense - Defered = $1040
Net income = $83200
The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses:
North South
Sales $900,000 $800,000
Variable expenses 450,000 300,000
Traceable fixed expenses 260,000 210,000
Allocated common corporate expenses 240,000 190,000
Net operating income (loss) ($50,000) $100,000
Management at Kelsh is pondering the elimination of the North Division. If the North Division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected.
Given this data, the elimination of the North Division would result in an overall company operating income of:
a. 50,000
b. 150,000
c. (140,000)
d. 100,000
Answer:
c. (140,000)
Explanation:
Effect on net income of dropping the North Division:
Sales $(900,000)
Variable expenses $450,000
Contribution margin $(450,000)
Traceable fixed expenses $260,000
Effect on net income ($190,000)
Since the North Division currently have Net operating income (loss) of ($50,000), so therefore, after dropping the North Division, the overall company net operating loss will be $140,000 ($50,000 - $190,000).
Tamarisk Corporation had the following activities in 2020. 1. Payment of accounts payable $711,000 4. Collection of note receivable $93,000 2. Issuance of common stock $247,000 5. Issuance of bonds payable $522,000 3. Payment of dividends $335,000 6. Purchase of treasury stock $49,000 Compute the amount Tamarisk should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash select an option by financing activities $enter a dollar amount
Answer:
the Net Cash flow provided by financing activities is $385,000
Explanation:
The computation of the amount that should be reported as net cash provided or used by financing activities is shown below:
Cash flow from financing activities
Issuance of common stock $247,000
Issuance of bonds payable $522,000
Less: Payment of dividends -$335,000
Less: Purchase of treasury stock -$49,000
Net Cash flow provided by financing activities $385,000
Hence, the Net Cash flow provided by financing activities is $385,000
marketing and distributing the company's product are categorized as
Answer:
Commerce.
Explanation:
It is concerned with distribution, exchange of goods and services and all activities which facilitates trade
Dana Ashbrook Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $19,384 plus trade-in, f.o.b. factory. Dana Ashbrook Inc. paid $19,384 cash and traded in used equipment. The used equipment had originally cost $150,226; it had a book value of $101,766 and a secondhand fair value of $115,819, as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of $2,665.
1) Prepare the general journal entry to record this transaction, assuming that the exchange has commercial substance.
2) Assuming the same facts as in (a) except that fair value information for the assets exchanged is not determinable. Prepare the general journal entry to record this transaction.
Answer:
A) Dr Equipment $137,868
Dr Accumulated Depreciation $48,460
Cr Equipment $150,226
Cr Cash $22,049
Cr Gain on disposal $14,063
B) Dr Equipment $123,815
Dr Accumulated Depreciation $48,460
Dr Equipment $150,226
Dr Cash $22,049
Explanation:
Preparation of the journal entries
A) Dr Equipment $137,868
($115,819+$19,384+$2,665)
Dr Accumulated Depreciation $48,460
($150,226-$101,766)
Cr Equipment $150,226
Cr Cash $22,049
($19,384+$2,665)
Cr Gain on disposal $14,063
($137,868+$48,460-$150,226-$22,049)
B) Dr Equipment $123,815
($150,226+22,049-48,460)
Dr Accumulated Depreciation $48,460
($150,226-$101,766)
Dr Equipment $150,226
Dr Cash $22,049
($19,384+$2,665)
explain the topic 'market structure' in economics
Answer:
Market structure, in economics, refers to how different industries are classified and differentiated based on their degree and nature of competition for goods and services. It is based on the characteristics that influence the behavior and outcomes of companies working in a specific market.
Explanation:
I hope this helps, correct me if I am wrong :) DO NOT CLICK ON RANDOM LINKS AS THEY CONTAIN VIRUSES!
Answer:
Market structure refers to characteristics or properties of marketing economy.
They are mainly represented by curves such as monopolistic characteristics which comprises of perfect and imperfect Monopoly.
And oligopolistic factor.
The market research department of the National Real Estate Company conducted a survey among 500 prospective buyers in a suburb of a large metropolitan area to determine the maximum price a prospective buyer would be willing to pay for a house. From the data collected, the distribution that follows was obtained.
Maximum Price Considered, x P(X = x)
(in thousands of dollars)
480 10
500
490 20
500
500 75
500
510 85
500
520 70
500
550 95
500
580 95
500
600 45
500
650 5
500
Required:
Compute the mean, variance, and standard deviation of the maximum price x that these buyers were willing to pay for a house.
Answer:
Following are the responses to the given question:
Explanation:
Using formula:
[tex]Mean=\Sigma x \times P(x)\\\\Variance=\Sigma (x-\mu)^2 \times P(x)\\\\Standard \ Deviation=\sqrt{Variance}[/tex]
[tex]x\ \ \ \ \ \ \ P(x)\ \ \ \ \ \ \ x\times P(x)\ \ \ \ \ \ \ (x-\mu)^2\times P(x)\\\\480\ \ \ \ \ \ \ 0.02\ \ \ \ \ \ \ 9.6\ \ \ \ \ \ \ 72.9632\\\\490\ \ \ \ \ \ \ 0.05\ \ \ \ \ \ \ 24.5\ \ \ \ \ \ \ 127.008\\\\500\ \ \ \ \ \ \ 0.14\ \ \ \ \ \ \ 70\ \ \ \ \ \ \ 228.5024\\\\510\ \ \ \ \ \ \ 0.16\ \ \ \ \ \ \ 81.6\ \ \ \ \ \ \ 147.8656\\\\520\ \ \ \ \ \ \ 0.14\ \ \ \ \ \ \ 72.8\ \ \ \ \ \ \ 58.2624\\\\550\ \ \ \ \ \ \ 0.18\ \ \ \ \ \ \ 99\ \ \ \ \ \ \ 16.5888\\\\[/tex]
[tex]580\ \ \ \ \ \ \ 0.18\ \ \ \ \ \ \ 104.4\ \ \ \ \ \ \ 282.2688\\\\600\ \ \ \ \ \ \ 0.12\ \ \ \ \ \ \ 72\ \ \ \ \ \ \ 426.2592\\\\650\ \ \ \ \ \ \ 0.01\ \ \ \ \ \ \ 6.5\ \ \ \ \ \ \ 120.1216\\\\[/tex]
[tex]Total\ \ \ \ \ \ \ \ \ \ 540.4 \ \ \ \ \ \ \ \ \ \ 1479.84\\\\Mean \ \ \ \ \ \ \ \ \ \ 540.4 \ \ \ \ \ \ \ \ \ \ dollars\\\\Variance \ \ \ \ \ \ \ 1479.84 \ \ \ \ \ \ \ \ dollars^2\\\\St \ Dev \ \ \ \ \ \ \ \ \ \ 38 \ \ \ \ \ \ \ \ \ \ dollars[/tex]
Plantwide Overhead Rate, Activity-Based Costing, Job Costs
Foto-Fast Copy Shop provides a variety of photocopying and printing services. On June 5, the owner invested in some computer-aided photography equipment that enables customers to reproduce a picture or illustration, input it digitally into the computer, enter text into the computer, and then print out a four-color professional quality brochure. Prior to the purchase of this equipment, Foto-Fast Copy Shop's overhead averaged $30,400 per year. After the installation of the new equipment, the total overhead increased to $83,600 per year. Foto-Fast Copy Shop has always costed jobs on the basis of actual materials and labor plus overhead assigned using a predetermined overhead rate based on direct labor hours. Budgeted direct labor hours for the year are 7,600, and the wage rate is $9 per hour.
Required:
1. What was the predetermined overhead rate prior to the purchase of the new equipment?
$ per direct labor hour
2. What was the predetermined overhead rate after the new equipment was purchased?
$ per direct labor hour
3. Suppose Rick Anselm brought in several items he wanted photocopied. The job required 600 sheets of paper at $0.03 each and 36 minutes of direct labor time. What would have been the cost of Rick's job on May 20? On June 20? If required, round your answers to the nearest cent. Round your intermediate computations to two decimals places and final answer to the nearest dollar
Total job cost
May 20 $
June 20 $
4. Suppose that the owner decides to calculate two overhead rates, one for the photocopying area based on direct labor hours as before, and one for the computer-aided printing area based on machine time. Estimated overhead applicable to the computer-aided printing area is $55,440, and forecasted usage of the machines is 2,100 hours. What are the two overhead rates? If required, round your answers to the nearest cent.
Answer:
Foto-FAst Copy Shop
1. Predetermined overhead rate = $4 per direct labor hour
2. Predetermined overhead rate = $11 per direct labor hour
3. Total job cost (Rick Anselm):
May 20 = $26.00
June 20 = $30.00
4. The two overhead rates:
a. $26.40 per machine hour
b. $3.71 per direct labor hour
Explanation:
a) Data and Calculations:
Average overhead per year prior to the purchase of the new equipment = $30,400
Average overhead per year after the installation of new equipment = $83,600
Budgeted direct labor hours for the year = 7,600
Wage rate = $9 per hour
1. Predetermined overhead rate prior to the purchase of the new equipment
= $4 ($30,400/7,600)
2. Predetermined overhead rate after the new equipment was purchased
= $11 ($83,600/7,600)
3. Cost of Rick Anselm's job on May 20:
Materials ($0.03 * 600) $18.00
Labor ($9 * 36/60) 5.40
Overhead applied 2.40 ($4 * 36/60)
Total cost of job = $25.80 = $26
Cost of Rick Anselm's job on June 20:
Materials ($0.03 * 600) $18.00
Labor ($9 * 36/60) 5.40
Overhead applied 6.60 ($11 * 36/60)
Total cost of job = $30.00
4. Overhead Rates Photocopying Computer Printing Total
Overhead cost $55,440 $28,160 $83,600
Machine hours 2,100
Direct labor hours 7,600
Overhead rates $26.40 $3.71
You are the price manager at a restaurant that, for customer relations reasons, can reset its prices (reprint menus) no more than once every two years. Because you want prices that are competitive but cover costs with as much of a profit margin to spare as possible, you require as accurate a prediction of inflation over the next two years as possible.
What would be your best method of predicting inflation?
a. Take the forecast of the economist with the best track record of predicting inflation.
b. Look to the yields of inflation swaps.
c. Consult the University of Michigan survey of inflation expectations among the public.
d. Take the average inflation forecast across many professional economists.
Answer:
My best method of predicting inflation as the price manager at a restaurant is:
b. Look to the yields of inflation swaps.
Explanation:
An inflation swap is a financial derivative contract that transfers inflation risk between two parties. Inflation swap yields can provide a more accurate estimation of the future inflation rates than relying on the predictions of individual economists. This method is widely used by finance professionals to hedge or reduce inflation risk and set long-term prices.
An amount for which of the following accounts would not appear in the Balance Sheet columns of the end-of-period spreadsheet?
a. Terry James, Drawing and Unearned Revenue
b. Service Revenue
c. Terry James, Drawing
d. Unearned Revenue
Answer:
Service revenue
Explanation:
Service revenue does not appear on a balance sheet. It appears on an income statement.
Norris Company has the following capital structure: Common stock, $1 par, 100,000 shares issued and outstanding. On October 1, 2020, the company declared a 5% common stock dividend when the market price of the common stock was $15 per share. The stock dividend will be distributed on October 15, 2020, to stockholders on record on October 10, 2020. Upon declaration of the stock dividend, Norris Company would record:
Answer: Debit to retained earnings of $75000
Explanation:
Based on the information given, the stock dividend will be:
= 100,000 shares x 5%
= 100000 × 0.05
= 5,000 shares.
Since the market price is $15 per share, then the retained earnings will be:
= $15 × 5000
= $75000
Stock dividend distributable will be:
= 5,000 x $1
= $5000
Paid in capital in excess of par = $75000 - $5000 = $70000
The journal entry will be:
Debit Retained earnings $75000
Credit Stock dividend distributable $5,000
Credit Paid in capital in excess of par $70000