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
Crane Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/20 $354,700 $331,550 12/31/21 413,510 394,540 (a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method.
Answer and Explanation:
a. The journal entries are shown below
Cost of goods sold ($354,700 - $331,550) $23,150
To Allowance for reduction in inventory to NRV $23,150
(Being allowance for reduction is recorded)
Allowance for reduction in inventory to NRV ($23,150 - ($413,510 - $394,540)) $4,180
To Cost of good sold $4,180
(being recording of the previous loss)
These two entries should be recorded at LCNRV method
The following facts relate to Coronado Corporation.
1. Deferred tax liability, January 1, 2020, $20,200.
2. Deferred tax asset, January 1, 2020, $0.
3. Taxable income for 2020, $95,950.
4. Pretax financial income for 2020, $202,000.
5. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $242,400.
6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $35,350.
7. Tax rate for all years, 20%.
8. The company is expected to operate profitably in the future.
Compute income taxes payable for 2020:
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer: See explanation
Explanation:
a. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.
Debit Income Tax Expense $40400
Debit Defered Tax Asset $7070
Credit Income Tax Payable $19190
Credit Defered tax liability $28280
(To record income tax expense and defered tax/liability).
Note that:
Income Tax Expense was gotten as:
= $202,000 × 20%
= $202000 × 0.2
= $40,4000
Income Tax Payable was gotten as:
= $95,950 × 20%
= $95950 × 0.2
= $19,190
2. Prepare the income tax expense section of the income statement for 2020.
Income statement for year ended 31 December 2020
Income before tax = $202000
Less: Income Tax expense - Current = $19190
Less: Income Tax expense - Defered = $21210
Net income = $161600
A firm is operating in the United States with only two other competitors in the industry. a. It is likely this industry would be characterized as: multiple choice 1 perfectly competitive. oligopoly. pure monopoly. monopolistically competitive. b. Firms in this industry will likely earn: multiple choice 2 an economic profit. a normal profit. an economic loss. c. If foreign firms begin supplying the product, increasing the number of competitors, it is likely that: multiple choice 3 economic losses will become smaller. normal profits will increase. economic profits will increase. economic profits will fall.
Answer:
a. Oligopoly.
b. an economic profit.
c. economic profits will fall.
Explanation:
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, which may either be similar or identical products and dominance by few firms.
The characteristics of an oligopolistic market structure are;
I. Mutual interdependence between the firms.
II. It's a market that is typically controlled by many small firms.
III. Difficult entry to new firms.
In this scenario, a business firm is operating in the United States with only two other competitors in the industry. Thus, the following can be stated about the business firm;
a. It is likely this industry would be characterized as an oligopoly.
b. Firms in this industry will likely earn an economic profit.
c. If foreign firms begin supplying the product, increasing the number of competitors, it is likely that economic profits will fall.
In conclusion, a business firm operating in this industry (oligopolistic market) will likely earn an economic profit. Also, if foreign business firms begin supplying the product, increasing the number of competitors, it is likely that economic profits will fall because the industry is now being competitive and controlled by other business firms.
The risk-free rate of return is 9.0%, the expected rate of return on the market portfolio is 14%, and the stock of Xyrong Corporation has a beta coefficient of 2.0. Xyrong pays out 50% of its earnings in dividends, and the latest earnings announced were $20 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 18% per year on all reinvested earnings forever
a. What is the intrinsic value of a share of Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Intrinsic valueS
b-1. If the market price of a share is currently $108, and you expect the market price to be equal to the intrinsic value one year from now, calculate the price of the share after one year from now. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Price
b-2. What is your expected one-year holding-period return on Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Expected one-year holding-period return
Answer:
$109
$118.81
18.26%
Explanation:
Intrinsic value can be determined using the constant growth dividend model
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
dividend, growth rate and cost of equity are not given and they have to be calculated
growth rate = retention rate x ROE
Retention rate = 1 - payout ratio = 1 - 0.5 = 0.5 = 50%
0.5 x 18% = 9%
According to the capital asset price model: cost of equity = risk free + beta x (market rate of return - risk free rate of return)
9% + 2x (14% - 9%) = 19%
dividend = payout ratio x earnings per share
0.5 x $20 = $10
Intrinsic value = [tex]\frac{10( 1 + 0.09)}{0.19 - 0.09}[/tex] = $109
Stock price in a year
[tex]\frac{10(1 + 0.9)^{2} }{0.19 - 0.09}[/tex] = 118.81
(dividend return + price return)
price return is the return on investment as a result of appreciation or depreciation of share price
Dividend return is the return on investment from dividend earned
price return = price at the end of the year - price at the beginning of the year
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match each phrase that follows with the term it describes. Clear All Includes gross profit on the income statement. Generally provides the most useful report for controlling costs. Treats fixed selling cost as a period cost. Required by generally accepted accounting principles. Absorption costing only Variable costing only Both absorption and variable costing
Answer and Explanation:
The matching is as follows
1. In the absorption costing, the gross profit is on the income statement
2. The variable cost provided the useful report with respect for controlling cost
3. The fixed selling cost be the period cost in both the absorption & variable costing
4. In absorption costing, it required by GAAP
In this way it should be matched
hence, the same would be relevant and considered
A company's income statement reported net income of $80,000 during 2016. The income tax return excluded a revenue item of $6,000 (reported on the income statement) because under the tax laws the $6,000 would not be reported for tax purposes until 2017. Which of the following statements is incorrect assuming a 21% tax rate?
a. Income tax expense on the income statement exceeds the tax liability to the IRS.
b. The $6,000 of revenue creates a deferred tax liability.
c. A $2,100 deferred tax liability is reported as of December 31, 2014.
d. Income tax expense on the income statement is $25,900.
Answer:
d. Income tax expense on the income statement is $25,900.
Explanation:
Calculation to determine the statements that is incorrect assuming a 21% tax rate
INCOME TAX EXPENSE
Using this formula
Income tax expense=Net income*Tax rate
Let plug in the formula
Income tax expense=$80,000*.21
Income tax expense=$16,800
Based on the above calculationThe income tax expense ($80,000 × .21) on the income statement is $16,800
Therefore the statements that is incorrect assuming a 21% tax rate is
INCOME TAX EXPENSE ON THE INCOME STATEMENT is $25,900
The auditor begins selecting controls to test by _______. by understanding the entity and the business and determining the risk of material fraud or error at the financial statement level by understanding the entity and all other industries and determining the risk of material fraud or error at the financial statement level asking management which controls they would prefer the auditor to test checking the same controls as the prior year
Answer:
by understanding the entity and the business and determining the risk of material fraud or error at the financial statement level.
Explanation:
An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.
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 main purpose of internal controls is to guarantee that loss is eliminated by ensuring that there is 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.
In order to start the selection of controls to test, an auditor has to understand the entity and the business, as well as determine the risk of material fraud or error at the financial statement level.
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
A standard unmodified opinion is an opinion where financial statements are presented free of any misinterpretation, in all material respects, in accordance with standards known as Generally Accepted Accounting Principles (GAAP) to provide a high level of assurance.
The standard unmodified opinion comprises of report title, audit report address, introduction paragraph, managements responsibility, auditor's responsibility, opinion paragraph, audit report date and signature and address of certified public accountant firm.
Additionally, an unmodified opinion on financial statements can be defined as an opinion issued by an auditor stating that there are no material misstatements and this simply implies that the, the financial statement represents a true and fair perspective of the accounting information of a business.
Wesley, who is single, listed his personal residence with a real estate agent on March 3 of the current year at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7. The closing statement showed the following disbursements:
Real estate agent's commission $21,780
Appraisal fee 600
Exterminator's certificate 300
Recording fees 800
Mortgage to First Bank 305,000
Cash to seller 34,520
Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2017, Wesley purchases another residence for $325,000.
a. Wesley's recognized gain on the sale is __________
b. Wesley's adjusted basis for the new residence is ___________
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is _____________, and his adjusted basis for the new residence is __________
Answer:
a. Wesley's recognized gain on the sale is $0.
b. Wesley's adjusted basis for the new residence is $325,000
c. Assume instead that the selling price is $800,000.
Wesley's recognized gain is $326,520, and his adjusted basis for the new residence is $325,000.
Explanation:
Wesley's actual gain = $363,000 - $21,780 - $600 - $300 - $800 - $200,000 = $139,520, but it can all be excluded using section 121.
If the selling price is $800,000;
Wesley's actual gain = $800,000 - $21,780 - $600 - $300 - $800 - $200,000 = $576,520, but he can exclude $250,000, so his recognized gain = $326,520
Benny is 57 years old and is employed by the state as a school bus driver.He has an exemplary record,with no accidents in the past 27 years.Tom,aged 31,replaces Benny.Benny intends to file a discrimination claim under the Age Discrimination in Employment Act (ADEA)with the Equal Employment Opportunity Commission.If Benny lives in a state that has not waived sovereign immunity,which of the following statements is most likely to be true?
A) Benny has a valid claim and can sue the state because he can establish all of the elements of a prima facie case.
B) Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
C) Benny is a state employee and must file his claim pursuant to the Older Workers' Benefit Protection Act.
D) Benny does not have a claim for age discrimination under the ADEA as he was replaced by an employee who is older than 30.
Answer: B. Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
Explanation:
Based on the information given in the question, since Benny lives in a state that has not waived sovereign immunity, thus simply means that Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
Eben though the Age Discrimination in the Employment Act protects workers that are 40 years and above and Benny is 57 years, it should be noted that in the states whereby sovereign immunity hasn't been waived, the state employees cannot due their employers as they're barred from doing so.
Therefore, the correct option is B.
Suppose that you are running a business, and you need some extra space for one year. Your bank offers you a loan of $200,000 at 0% interest. You consider borrowing this amount to buy the building, use it for one year, and then sell the building to pay back the loan. Unfortunately, the economy in which you are operating is experiencing deflation at the rate of 10% per year. After one year, you should be able to sell the building for____.
Suppose that owning the building for a year would earn you $12,000. To decide whether you will be better off by owning it for one year and then selling it, you seek advice from three different people: (1) Your brother says that you should not buy the building because in one year it will cost you $200,000. (2) Your accountant says that you should definitely buy the building because you can borrow $200,000 at zero interest while the building will generate $12,000 in extra income. Then when you sell it, you will be $12,000 richer. (3) Your bookkeeper says that if you sell the building in a year, you will have to come up with more money to pay off the loan than you will make in extra income.
Keeping in mind that the economy experiences deflation at the rate of 10%, who is right?
A. Your bookkeeper is right, because the extra income you will earn will be less than the cost of owning the building for the year.
B. Your brother is correct, because when the nominal interest rate is zero, the cost of a building is its full purchase price.
C. Your accountant is right, because when the nominal interest rate is zero, you do not incur any cost when you take out a loan.
Now, suppose you inherited $200,000 in cash from your uncle who had kept it hidden in his mattress. Assuming the nominal interest rate is -1%, which of the following options will maximize the amount of cash that you have in one year?
A. Holding onto your $200,000 in cash.
B. Buying the building, because you can earn an additional $12,000 in income if you own the building for one year and then sell it.
C. Depositing the cash in the bank, because the 10% rate of deflation makes the value of your dollars fall even more rapidly than 1% per year.
A high real interest rate will keep firms from borrowing to finance investment in capital, but it will not keep firms with cash from investing in capital.
A. False
B. True
Answer:
Question 1
The building will depreciate by 10% in one year so in one year you will only be able to sell it for:
= 200,000 * ( 1 - 10%)
= $180,000
Question 2.
A. Your bookkeeper is right, because the extra income you will earn will be less than the cost of owning the building for the year.
If you buy the building, you will have to pay back $200,000 in a year.
However, you will only be able to sell the building for $180,000 and you will receive an income of $12,000 for a total of:
= 180,000 + 18,000
= $192,000
This is $8,000 less than the $200,000 you borrowed so you will pay back more than you borrowed.
Question 3
A. Holding onto your $200,000 in cash.
Holding your cash is the best option because investing in the building would lead to a loss of $8,000 after a year.
The bank would also reduce your balance by 1%. It is therefore best to hold the money.
Question 4
A. False
Companies with cash still have to make decisions based on gains and they will stand to gain more if they deposited their money because this would give them more interest profits.
_____ allow job seekers to search several different sources at the same time. Indeed.com and Jobs2Careers.com are both examples of this type of Web site.
Job board Web sites
Meta job search engine Web sites
Corporate career center Web sites
Industry-specific Web sites
Answer:
I think the answer is job board websites
Explanation:
Answer:
Meta job search engine Web sites
Explanation:
I looked up each one of the possible answer's and Meta job search engine web sites makes the most amount of sense. I guess Job board web sites when I took the quiz and got it wrong so I know for sure that it isn't that one.
(1 point) Why does the journalist think Enron's stock is overvalued?
Hi, you've asked an incomplete question. However, I provided some explanation.
Explanation:
Note, in the stock/asset trading market, the term 'stock/asset is overvalued' is used when the worth of a particular asset or stock is overestimated; in other words having a stock price that is too high considering the projects/company's usefulness.
Hence, the journalist's comments may have been based on this observation.
Suppose a hypothetical economy is currently in a recessionary gap of $64 billion. Four economists agree that expansionary fiscal policy can increase total spending and move the economy out of recession, but they are debating which type of expansionary policy should be used.
Economist A believes that the government spending multiplier is 8 and the tax multiplier is 2. Economist B believes that the government spending multiplier is 4 and the tax multiplier is 8.
Required:
Compute the amount the government would have to increase spending to close the output gap according to each economist's belief.
Answer:
a. Amount the government would have to increase spending according Economist A = $8 billion
b. Amount the government would have to increase spending according Economist B = $16 billion
Explanation:
a. Economist A
Since government spending multiplier is believed to be 8, this implies that the government has to spend an amount that when it is multiplied by 8 it will be equal to recessionary gap of $64 billion in order to close the output gap. This amount can be calculated as follows:
Amount the government would have to increase spending according Economist A = Amount of recessionary gap / Government spending multiplier according to Economist A = $64 billion / 8 = $8 billion
b. Economist B
Since government spending multiplier is believed to be 4, this implies that the government has to spend an amount that when it is multiplied by 4 it will be equal to recessionary gap of $64 billion in order to close the output gap. This amount can be calculated as follows:
Amount the government would have to increase spending according Economist B = Amount of recessionary gap / Government spending multiplier according to Economist B = $64 billion / 4 = $16 billion
Is gender pay gap logical ? If so, kindly explain.
Thanks.
Answer:
yes (logically but in my opinion no)
Explanation:
The reason why is because some jobs required you to lift heavy stuff and some women can't lift very heavy things.
Use the following information for the Quick Study below. (The following information applies to the questions displayed below.]
The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,500 units during November. The following production activity unit and cost information refers to the assembly department's November production activities. Assembly Department Beginning work in process Units transferred out Ending work in process Units 3,000 10,000 5,500 Percent of Direct Materials Added 708 100% 803 Percent of Conversion 308 100% 30% $3,070 (includes $2,130 for direct materials and $940 for conversion) Beginning work in process inventory-Assembly dept Costs added during the month: Direct materials Conversion $ 20,910 $ 22,360 QS 16-13 Weighted average: Journal entry to transfer costs LO P4
Required: Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the weighted average method.
Answer:
The Carlberg Company
Journal Entry:
Debit Work in Process (Painting Department) $36,000
Credit Work in Process (Assembly Department) $36,000
To record the transfer of 10,000 units from the assembly department to the painting department.
Explanation:
a) Data and Calculations:
Units started during November = 12,500
Assembly Department
Units Percent of Direct Percent of
Materials Added Conversion
Beginning work in process 3,000 70% 30%
Units started during Nov. 12,500
Units transferred out 10,000 100% 100%
Ending work in process 5,500 80% 30%
Cost of beginning work in process = $2,130 $940 $3,070
Costs added during the month: $ 20,910 $ 22,360 $43,270
Total costs of production $23,040 $23,300 $46,340
Equivalent units of production:
Units transferred out 10,000 10,000 10,000
Ending work in process 5,500 4,400 1,650
Total equivalent units 14,400 11,650
Cost per equivalent unit:
Total costs of production $23,040 $23,300
Total equivalent units 14,400 11,650
Cost per equivalent unit $1.60 $2.00
Cost assigned to: Materials Conversion Total
Units transferred out $16,000 $20,000 $36,000
($1.60*10,000) ($2*10,000)
Ending Work in process 7,040 3,300 10,340
($1.60*4,400) ($2*1,650)
Total costs allocated $23,040 $23,300 $46,340
Terra Corporation purchased equipment with a 10-year useful life and zero residual value for $100,000. At the end of the fourth year, the equipment is exchanged for new equipment worth $110,000. Terra gets a trade-in allowance of $70,000 on the exchange, with the remaining $40,000 paid in cash. Which of the following is true of the net effect of this transaction? Assume the straight-line depreciation method is used.
A. Assets decrease by $10,000
B. Assets increase by $10,000
C. Liabilities increase by $10,000
D. Total stockholders' equity decreases by $10,000
E. Total stockholders' equity increases by $10,000
Answer:
Assets increase by $10,000
Total stockholders' equity decreases by $10,000
Explanation:
Assets increase =($110,000-$100,000)
Assets increase=$10,000
Total stockholders' equity decreases=$100,000-$110,000
Total stockholders' equity decreases= -$10,000
Therefore Based on the information given what is true of the net effect of the transaction are :
Assets increase by $10,000
Total stockholders' equity decreases by $10,000
. Bartholomew Corp's master budget calls for the production of 6,000 units of products monthly. The master budget includes indirect labor of $396,000 annually; Bartholomew considers indirect labor to be a variable cost. During the month of September, 5,600 units of product were produced, and indirect labor costs of $30,970 were incurred. A performance report utilizing flexible budgeting would report a flexible budget variance for indirect labor of:
Answer:
$170 Unfavorable
Explanation:
Budgeted monthly indirect labor = $396,000/12 = $33,000
Budgeted indirect labor per unit = $33,000/6,000 = $5.5 per unit
Flexible budgeted cost = 5,600*$5.5 = $30,800
Flexible budget variance = Actual cost - Flexible cost
Flexible budget variance = $30,970 - $30,800
Flexible budget variance = $170 Unfavorable
The Ring Division of A1d-Y6z Company reported the following information for May: selling price per unit .................... $35 variable costs per unit ................... $12 turnover .................................. 2.50 residual income ........................... $229,600 margin .................................... 22% units sold ................................ 40,000 Calculate the number of units the Ring Division needed to sell in May in order for the residual income in May to be $505,600.
Answer:
52,000 units
Explanation:
Selling price = $35*40,000 = $1,400,000
Variable cost = $12 * 40,000 = $480,000
Contribution margin = $1,400,000 - $480,000 = $920,000
Fixed cost = Residual income + Contribution
Fixed cost = $920,000 - $229,600
Fixed cost = $690,400
Sales to earn residual income = [Fixed cost + Desired profit] / Contribution per unit
Sales to earn residual income = [$690,400 + $505,600] / $35 - $12
Sales to earn residual income = $1,196,000 / $23
Sales to earn residual income = 52,000 units
You have collected data for the 50 U.S. states and estimated the following relationship between the change in the unemployment rate from the previous year and the growth rate of the respective state real GDP (). The results are as follows:
Δur= (0.12) -(0.04)x gy, R2= 0.36, SER= 0.78
Assuming that the estimator has a normal distribution, the 95% confidence interval for the slope is approximately the interval:
a. [-0.31, 0.15]
b. [2.57, 3.05 ]
c. [-0.33, - 0.13]
d. [-0.13, -0.15]
Answer:
[ -0.13, -0.15 ] ( D )
Explanation:
Given data :
sample size ( n ) = 50
Independent variable ( p ) = 1
determine the confidence interval for the slope
Df ( degree of freedom ) = n - p - 1 = ( 50 - 1 - 1 ) = 48
b ( estimated slope ) = -0.23
Standard error of slope = 0.04
confidence interval = 95%
For confidence interval of 95% and Df of 48 ; critical value ( t ) = 2.011
∴ Confidence interval
= -0.23 ± ( 2.011 * 0.04)
= -0.23 ± 0.08044
= [ -0.13, -0.15 ]
Orange Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 520,000 Annual net cash flows $ 78,000 Life of the equipment 10 years Salvage value $ 0 Discount rate 6 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be: Multiple Choice 1.0 years 0.2 years 4.7 years 6.7 years
Answer:
6.7 years
Explanation:
According to the scenario, computation of the given data are as follows,
Investment = $520,000
Net cash flow = $78,000
Life of equipment = 10 years
So, we can calculate the payback period for investment by using following formula,
Payback period for investment = Initial Investment ÷ Net cash flow
= $520,000 ÷ $78,000
= 6.67 years or 6.7 years
The Pines Company, which manufactures office equipment, is ready to introduce a new line of portable copiers. The following copier data are available:
Variable manufacturing cost $ 180
Variable selling and administrative cost 90
Applied fixed manufacturing cost 60
Allocated fixed selling and administrative cost 75
What price will the company charge if the firm uses cost-plus pricing based on total manufacturing cost and a markup percentage of 160%?
Answer:
$ 624
Explanation:
Given :
Variable manufacturing cost = $ 180
Applied fixed manufacturing cost = $ 60
Therefore, total manufacturing cost = 180 + 60
= $ 240
Mark up percentage = 160%
Price to be charged = 240 + 160% of 240
= 240 + 384
= $ 624
Budgeted Income Statement Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of $19,700,000 and cost of goods sold of $10,835,000. Advertising is a key part of Coral Seas' business strategy, and total marketing expense for the year is budgeted at $3,546,000. Total administrative expenses are expected to be $788,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income.
Required:
Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. Enter your answers in dollars and not in millions.
Answer:
The budgeted net income for the coming year is $2,718,600.
Explanation:
The budgeted income statement for Coral Seas Jewelry Company for the coming year can be constructed as follows:
Coral Seas Jewelry Company
Budgeted Income Statement
For the Coming Year
Details Amount ($)
Sales 19,700,000
Cost of Goods Sold (10,835,000)
Gross Margin 8,865,000
Marketing Expenses (3,546,000)
Administrative Expenses (788,000)
Operating income 4,531,000
Income Tax (40%) (1,812,400)
Net Income 2,718,600
Coastal Shores Inc. (CSI) was destroyed by Hurricane Fred on August 5, 2021. At January 1, CSI reported an inventory of $170,000. Sales from January 1, 2021, to August 5, 2021, totaled $480,000 and purchases totaled $195,000 during that time. CSI consistently marks up its products 60% over cost to arrive at a selling price. The estimated inventory loss due to Hurricane Fred would be:
Answer:
$65,000
Explanation:
Calculation to determine what The estimated inventory loss due to Hurricane Fred would be
Beginning inventory$170,000
Add Net purchases195,000
Goods available for sale365,000
($170,000+$195,000)
Less: Cost of goods sold (300,000)
($480,000/160%)
Estimated ending inventory$65,000
($365,000-$300,000)
Therefore The estimated inventory loss due to Hurricane Fred would be $65,000
The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities:
Mixing: water, sugar, and beverage concentrate are mixed.
Filling: mixed beverage is filled into 12-oz. cans.
Packaging: properly filled cans are boxed into cardboard "fridge packs."
The activity costs associated with these activities for the period are as follows:
Mixing $286,000
Filling 253,500
Packaging 110,500
Total $650,000
The activity costs do not include materials costs, which are ignored for this analysis. Each can is expected to contain 12 ounces of beverage. Thus, after being filled, each can is automatically weighed. If a can is too light, it is rejected, or "kicked," from the filling line prior to being packaged. The primary cause of kicks is heat expansion. With heat expansion, the beverage overflows during filling, resulting in underweight cans. This process begins by mixing and filling 6,760,000 cans during the period, of which only 6,500,000 cans are actually packaged. 260,000 cans are rejected due to underweight kicks. A process improvement team has determined that cooling the cans prior to filling them will reduce the amount of overflows due to expansion. After this improvement, the number of kicks is expected to decline from 260,000 cans to 65,000 cans, thus increasing the number of filled cans to 6,695,000 [6,500,000 (260,000 - 65,000)].
Required:
a. Determine the total activity cost per packaged can under present operations.
b. Determine the amount of increased packaging activity costs from the expected improvements.
c. Determine the expected total activity cost per packaged can after improvements.
Answer:
A. $0.1 per can
B. $3,315
C. 0.098 per packaged can
Explanation:
a) Calculation to Determine the total activity cost per packaged can under present operations.
Using this formula
Total activity cost per packaged = Total activity cost under present operations ÷ total cans packaged
Let plug in the formula
Total activity cost per packaged= $650,000 ÷ 6,500,000
Total activity cost per packaged= $0.1 per can
Therefore the total activity cost per packaged can under present operations is $0.1 per can
b) Calculation to Determine the amount of increased packaging activity costs from the expected improvements.
First step is to calculate the Packaging cost per bottle =
Using this formula
Packaging cost per bottle = Current packaging cost ÷ total cans packaged
Let plug in the formula
Packaging cost per bottle = 110,500 ÷ 6,500,000
Packaging cost per bottle = $0.017 per bottle
Second step is to calculate the Total packaging cost
Using this formula
Total packaging cost = Total bottle × cost per bottle
Let plug in the formula
Total packaging cost= 6,695,000 × $0.017
Total packaging cost= $113,815
Now let determine the amount of increased packaging activity costs from the expected improvements.
Using this formula
Amount of increased packaging activity costs = total packaging cost - current packaging cost
Let plug in the formula
Amount of increased packaging activity costs= $113,815 - 110,500
Amount of increased packaging activity costs= $3,315
Therefore the amount of increased packaging activity costs from the expected improvements is $3,315
c) Calculation to Determine the expected total activity cost per packaged can after improvements
First step is to calculate Total activity cost using this formula
Total activity cost = Mixing cost + filling cost + packaging cost
Let plug in the formula
Total activity cost == $286,000 + $253,500 + $113,815
Total activity cost == $653,315
Now let determine the Expected total activity cost per packaged can
Using this formula
Expected total activity cost per packaged can = Total activity cost ÷ no. of bottles
Let plug in the formula
Expected total activity cost per packaged can= $653,315 ÷ 6,695,000
Expected total activity cost per packaged can=0.098 per packaged can
Therefore the expected total activity cost per packaged can after improvements is 0.098 per packaged can
In divisional income statements prepared for Lemons Company, the Payroll Department costs are allocated to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are allocated on the basis of the number of purchase requisitions. The Payroll Department had costs of $62,928, and the Purchasing Department had expenses of $29,480 The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:
Residential Commercial Government Contract
Sales $2,000,000 $3,250,000 $2,900,000
Weekly payroll (52 weeks per year) 400 250 150
Monthly payroll 80 30 10
Number of purchase requisitions per year 7,500 3,000 2,000
Required:
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services.
c. Residential's service department charge is _______ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a ________ number of payroll transactions.
Answer:
Lemons Company
a. Total amount of payroll checks = 920
amount of purchase requisitions = 12,500
b-a Residential Commercial Government Total
Payroll $32,832 $19,152 $10,944 $62,928
b-b Purchasing
Costs $17,688 $4,717 $7,075 $29,480
c. Residential's service department charge is __higher__ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a __higher__ number of payroll transactions.
Explanation:
a) Data and Calculations:
Cost of the Payroll Department = $62,928
Cost of the Purchasing Department = $29,480
Residential Commercial Government Total
Contract
Sales $2,000,000 $3,250,000 $2,900,000 $8,150,000
Weekly payroll
(52 weeks per year) 400 250 150 800
Monthly payroll 80 30 10 120
Total 480 280 160 920
Number of purchase
requisitions per year 7,500 3,000 2,000 12,500
a. Total amount of payroll checks = 920 (800 + 120)
Total amount of purchase requisitions = 12,500
b-a Residential Commercial Government Total
Payroll $32,832 $19,152 $10,944 $62,928
(480/920 * $62,928) (280/920 * $62,928) (160/920 * $62,928)
b-b Purchasing
Costs $17,688 $4,717 $7,075 $29,480
(7,500/12,500 * $29,480) (2,000/12,500 * $29,480) (3,000/12,500 * $29,480)
Total $50,520 $23,869 $18,019 $92,408
Percentage 54.7% 25.8% 19.5% 100%
Toyota's global success in the 1990s and early 2000s was based to a large extent on a network of world-class suppliers in Japan. This tightly knit network allowed for fast two-way knowledge sharing—this in turn improved Toyota's quality and lowered its cost, which it leveraged into a successful blue ocean strategy at the business level. This example shows the effectiveness of
Answer:
related and supporting industries/complementors.
Explanation:
In the given scenario Toyota effectively leveraged on its related and supporting industries/complementors.
By having a tightly knit network of suppliers in Japan, Toyota developed a fast two-way knowledge sharing—this in turn improved their quality and lowered cost, which it leveraged into a successful blue ocean strategy.
The suppliers complimented their production efforts in such a way that quality improved and cost was lowered
Sheridan Company has 7500 shares of 5%, $100 par value, cumulative preferred stock and 15000 shares of $1 par value common stock outstanding at December 31, 2020. There were no dividends declared in 2018. The board of directors declares and pays a $71250 dividend in 2019 and in 2020. What is the amount of dividends received by the common stockholders in 2020
Answer:
See below
Explanation:
Given the above information,
The previous year preference dividend payable
= Previous year preferred dividend payable + Current year preference dividend payable - Total dividend paid in 2019
= (7,500 × $100 × 0.05) + (7,500 × $100 × 0.05) - $71,250
= $37,500 + $37,500 - $71,250
= $3,750
The dividends received by stockholders in 2020 will be
= Total dividend paid in 2020 - Current year preferred dividend - Previous year preference dividend payable
= ($71,250 - $37,500 - $3,750)
= $30,000
Dary Co. Produces a single product. Its normal selling price is $28 per unit. The variable costs are $18 per unit. Fixed costs are $20,000 for a normal production run of 5,000 units per month. Dary received a request for a special order that would not interfere with normal sales. The order was for 1,500 units and a special price of $17.50 per unit. Dary Co. has the capacity to handle the special order and, for this order, a variable selling cost of $2 per unit would be eliminated.
1. If the order is accepted, what would be the impact on net income?
a. decrease of $750
b. decrease of S6,750
c. increase of $2,250
d. increase of $1,500
2. Should the special order be accepted?
a. Cannot determine from the data given
b. Yes
c. No
d. There would be no difference in accepting or rejecting the special order.
Answer:
1. c. increase of $2,250
2. b. Yes
Explanation:
1. Calculation to determine what would be the impact on net income if the order is accepted
First step is to calculate the variable cost
Variable cost special order= ($18-$2)
Variable cost special order=$16
Now let calculate what would be the impact on net income if the order is accepted
Impact on net income=($17.50-$16)*1,500 units
Impact on net income=$1.50*1,500 units
Impact on net income= increase of $2,250
2. YES the special order should be accepted.
Using relevant examples discuss the five most important variables that may cause the market for
demand curve for labor to shift?
I will give brainliest
Answer:
An increase or decrease in the quantity demanded is shown as movement along the demand curve and is due to a change in price as shown in the graph on the prior page. An increase or decrease in demand is shown by a shift in the demand curve. A change in the demand of a good or service is caused by something other than a change in the price of a good or service.
Explanation:
When the demand curve shifts upward and to the right, it is indicative of an increase in demand
When the demand curve shifts downward and to the left, it is indicative of an increase or decrease in demand.
Demand: Demand Explanation
increases or decreases?
Population increases I There are more opportunities to buy
and sell.
Population decreases D There are fewer opportunities to
buy and sell.
Increase in most people I When income goes up, people have a s’ income greater ability to buy.
Decrease in most peoples’ D When income goes down, people have a
income diminished ability to buy.
Price of substitute increases I As the price of a substitute increases,
the demand for the product under study
increases. (If consumers have substituted
fish for meat, and the price of fish goes
up, the demand for meat will increase.)
The following is a list of various costs of producing T-shirts. Classify each cost as either a variable, fixed, or mixed cost for units produced and sold.
a. Ink used for screen printing Variable
b. Warehouse rent of $8,000 per month plus $0.50 per square foot of storage used Mixed
c. Thread Variable
d. Electricity costs of $0.038 per kilowatt-hour Variable
e. Janitorial costs of $4,000 per month Fixed
f. Advertising costs of $12,000 per month
g. Accounting salaries
h. Color dyes for producing different colors of T-shirts Variable
i. Salary of the production supervisor
j. Straight-line depreciation on sewing machines Fixed
k. Salaries of internal pattern designers
l. Hourly wages of sewing machine operators Variable
m. Property taxes on factory, building, and equipment Fixed
n. Cotton and polyester cloth
o. Maintenance costs with sewing machine company (the cost is $2,000 per year plus $0.001 for each machine hour of use.) Mixed
Solution :
a. Ink used for screen printing --- Variable
b. Warehouse rent of $8,000 per month plus $0.50 per square foot of storage used --- Mixed
c. Thread --- Variable
d. Electricity costs of $0.038 per kilowatt-hour --- Variable
e. Janitorial costs of $4,000 per month ---- Fixed
f. Advertising costs of $12,000 per month ---- FIXED
g. Accounting salaries --- FIXED
h. Color dyes for producing different colors of T-shirts ----- Variable
i. Salary of the production supervisor ---- FIXED
j. Straight-line depreciation on sewing machines ----- Fixed
k. Salaries of internal pattern designers ----- FIXED
l. Hourly wages of sewing machine operators ------ Variable
m. Property taxes on factory, building, and equipment ----- Fixed
n. Cotton and polyester cloth ---- VARIABLE
o. Maintenance costs with sewing machine company (the cost is $2,000 per year plus $0.001 for each machine hour of use.) ---- Mixed