Answer: c. $22,000 increase in operating income
Explanation:
Expected decrease in revenues -$280,000
Expected decrease in total variable costs (-$200,000)
Expected decrease in fixed costs (-$102,000)
Expected increase(decrease) in operating income $22,000
Costs are to be deducted from revenues so if the costs are decreasing, the mathematical treatment would be to add the decrease to the revenues which is how the above was calculated.
The Five & Dime store has a cost of equity of 15.8%, a pretax cost of 7.7%, and a tax rate of 35%. What is the firm's weighted average cost of capital if the debt-equity ratio is 0.40?
a. 10.18
b. 11.72
c. 12.72
d. 13.49
e. 14.93
Answer: 12.72%
Explanation:
The firm's weighted average cost of capital if the debt-equity ratio is 0.40 will be calculated thus:
= (1 /1+debt equity ratio)(cost of equity) + (Debt Equity ratio/1 + Debt Equity ratio)(Pre-tax cost)(1 - Tax rate)
=(1/1.40)(0.158) + (0.40/1.40)(0.077)(1 - 0.35)
= 12.72%
The firm's weighted average cost of capital is 12.72%
The standard cost of Product B manufactured by Pharrell Company Includes 3.7 units of direct materials at $6.8 per unit. During June, 26, 600 units of direct materials are purchased at a cost of $6.70 per unit, and 26, 600 units of direct materials are used to produce 7, 100 units of Product B.
(a) Compute the total materials variance and the price and quantity variances.
Total materials variance $
Materials price variance $
Materials quantity variance $
(b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.90 and the quantity purchased and used is 27,000 units.
Total materials variance $
Materials price variance $
Materials quantity variance %
Answer and Explanation:
The computation is shown below;
(a)
Total materials variance:
= ( AQ × AP ) - ( SQ × SP )
= (26600 × $6.70) - (26270 × $6.8)
= $178220 - $178636
= $416 F
Here
= 7100 × 3.7
=26,270
Materials price variance:
= ( AQ × AP ) - ( AQ × SP )
= (26600 × $6.70) - (26600 × $6.8)
= $178220 - $180,880
= $2660 F
Materials quantity variance:
= ( AQ × SP ) - ( SQ × SP )
= (26600 × $6.8) - (26270 × $6.8)
= $180,880- $178636
= $2244 U
(b)
(a) Total materials variance:
= ( AQ × AP ) - ( SQ × SP )
= (27000 × $6.90) - (26270 × $6.8)
= $186300 - $178636
= $7664 U
Here
= 7100 × 3.7
=26,270
Materials price variance:
= ( AQ × AP ) - ( AQ × SP )
= (27000 × $6.90) - (27000 × $6.8)
= $186300 - $183600
= $2700 U
Materials quantity variance:
= ( AQ × SP ) - ( SQ × SP )
= (27000 × $6.8) - (26270 × $6.8)
= $180,880- $178636
= $4964 U
what does it mean to be an economically responsible citizen?
Answer: Hope This Helps!
Explanation:
A responsible citizen has knowledge about his/her role in community, state and the world. A responsible citizen has a role in making the world a better place to live (for every components in biosphere). A responsible citizen is change agent that acts out against injustice in social, economic, and environmental sectors.
Which of the following statements is correct?
a. The current cash flow from existing assets is highly relevant to investors. However, since the value of the firm depends primarily upon its growth opportunities, accounting net income projections from those opportunities are the only relevant future flows with which investors are concerned.
b. Two metrics that are used to measure a company's financial performance are net income and free cash flow. Accountants tend to emphasize net income as calculated in accordance with generally accepted accounting principles. Finance people generally put at least as much weight on free cash flows as they do on net income.
c. To estimate the net cash provided by operations, depreciation must be subtracted from net income because it is a non-cash charge that has been added to revenue.
d. Interest paid by a corporation is a tax deduction for the paying corporation, but dividends paid are not deductible. This treatment, other things held constant, tends to discourage the use of debt financing by corporations.
e. If Congress changed depreciation allowances so that companies had to report higher depreciation levels for tax purposes in 2013, this would lower their free cash flows for 2013.
Answer:
The correct statement is:
b. Two metrics that are used to measure a company's financial performance are net income and free cash flow. Accountants tend to emphasize net income as calculated in accordance with generally accepted accounting principles. Finance people generally put at least as much weight on free cash flows as they do on net income.
Explanation:
Net income and free cash flow are profitability measures. While net income measures profitability by including all expenses: cash and non-cash, free cash flow measures profitability by excluding the non-cash expenses but instead includes spending on assets and working capital periodic changes.
On January 1, Marigold Corp. issued $6600000, 9% bonds for $7029000. The market rate of interest for these bonds is 8%. Interest is payable annually on December 31. Marigold uses the effective-interest method of amortizing bond premium. At the end of the first year, Marigold should report unamortized bond premium of:________
a) $397320
b) $398580
c) $375320
d) $297000
Answer:
a) $397320
Explanation:
Total premium of bond = Issue price - Par value
Total premium of bond = $7,029,000 - $6,600,000
Total premium of bond = $429,000
Total Annual payment to be made by firm = Coupon rate* par value of bond
= 0.09*$6,600,000
= $594,000
Interest part of the total annual payment made by firm = Market rate*Issue price of bond
= 0.08*$7,029,000
= $562,320
Premium of bond to be amortized at the end of year 1 = Total Annual payment to be made by firm - Interest part of the total annual payment made by firm
= $594,000 - $562,320
= $31,680
Unamortized premium at the end of year 1 = total premium of bond - amortized premium at the end of year 1
= $429,000 - $31,680
= $397,320
Farrina Manufacturing uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following: Underapplied manufacturing overhead: $7,200 Actual manufacturing overhead: $392,000 Budgeted labor hours: 50,000
Simone's actual labor hours worked totaled:_______.
a. 49,100.
b. 49,900.
c. 48,100.
d. 50,900.
e. cannot be determined based on the information presented.
Answer:
c. 48,100.
Explanation:
The computation of the actual labor hours worked is shown below;
Actual Overhead $392,000.00
Less: Underapplied overhead $7,200.00
Applied Overhead ($392,000 - $,7200) $384,800.00
Predetermined overhead rate $8.00
Actual labor hours ($384,800 ÷ 8) $48,100
hence, the actual labor hours worked is $48,100
Therefore the option c is correct
Farrina Manufacturing uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following: Underapplied manufacturing overhead: $7,200 Actual manufacturing overhead: $392,000 Budgeted labor hours: 50,000
Simone's actual labor hours worked totaled:_______.
a. 49,100.
b. 49,900.
c. 48,100.d. 50,900.
e. cannot be determined based on the information presented.
-KeonLee
I hope it help
#Carry on learning
A machine with a book value of $250,400 has an estimated six-year life. A proposal is offered to sell the old machine for $215,300 and replace it with a new machine at a cost of $283,100. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $50,900 to $40,700.
Required:
a. Prepare a differential analysis dated February 18 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2).
b. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)?
Answer:
A.Continue with Old Machine (Alt. 1) $305,400
Replace Old Machine (Alt. 2) $312,000
Differential effect on net income (Alt. 2) $6,600
B. Continue with the old machine (Alternative 1
Explanation:
a. Preparation of a differential analysis dated February 18 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2).
DIFFERENTIAL ANALYSIS
Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) February 18
Continue with Old Machine (Alt. 1) Replace Old Machine (Alt. 2) Differential effect on net income (Alt. 2)
Revenues:
Proceeds from sale of old machine $0 $215,300 $215,300
Costs:
Purchase price $0 –$283,100 –$283,100
Direct labor (6 years) –$305,400 -$244,200 $61,200
($50,900*6years=$305,400)
($40,700*6years=$244,200)
Income (Loss) –$305,400 –$312,000 –$6,600
B. Based on the above differential analysis
The company should continue with the old machine (Alternative 1) .
You obtain the following estimates for an AR(2) model of some returns data
yt = 0.803yt−1 + 0.682yt−2 + ut
Where ut is a white noise error process. By examining the characteristic equation, check the estimated model for stationarity.
Answer:
AR(2) model is not stationary
Explanation:
Given model : Yt = 0.803yt-1 + 0.682yt-2 + ut ---- ( 1 )
ut = noise error process
Aim : Check estimated model for stationarity
step 1 : represent the estimated polynomial of the model ( where: ut ∪ N(o,б^2 ) rewrite equation 1
Yt - 0.803yt-1 - 0.682yt-2 = ut ------- ( 2 )
hence the polynomial can be represented as :
( 1 - 0.803B - 0.682B^2 )Yt = ut
Characteristic of the obtained polynomial can be represented as ;
1 - 0.803λ - 0.682λ^2 - 1 = 0
attached below is the remaining part of the solution
Tristen Company purchased a five-story office building on January 1, 2019, at a cost of $5,000,000. The building has a residual value of $200,000 and a 30-year life. The straight-line depreciation method is used. On June 30, 2021, construction of a sixth floor was completed at a cost of $1,650,000.
Required:
Calculate the depreciation on the building and building addition for 2018 and 2019 assuming that the addition did not change the life or residual value of the building.
Answer:
Depreciation expense on Building
Depreciation expense per annum under straight line method = (Cost - Residual value) / Useful life
= ($5,000,000 - $200,000) / 30
= $4,800,000 / 30
= $160,000
Depreciation expense for 2018 = $160,000
Depreciation expense for 2019 = $160,000
Depreciation expense on Building addition
Useful life = 30.00 years - 2.50 years = 27.50 years
Depreciation expense per annum under straight line method = (Cost - Residual value) / Useful life
= ($1,650,000 - $0) / 27.50
= $60,000
Depreciation expense for 2018 for 6 months = $60,000 * (6/12) = $30,000
Depreciation expense for 2019 = $60,000
Which of the following is true of resumes?
A personal cover letter should be included with a resume.
A resume is not necessary if you completed an application.
The formats of electronic and hard copy resumes are the same.
An objective tells an employer what the applicant learned in school.
Answer:
Hello! Your answer would be, BELOW
Explanation:
Job objective should be listed last
Use action words when describing your experience.
These are the statements that are true about resumes. Resumes should include job objectives. However, these should be listed at the end of the resume. A second thing to remember when drafting a resume is that it is important to use action words to describe your experiences. This is because the statements become more interesting, and because this structure will highlight the role that you played in each instance.
Hope I helped! Brainiest plz! Hope you make an 100% and have a wonderful day! -Amelia♥
Mustafa manufacturing company began operations on january 1. During the year, it started and completed 3, 000 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs:
Raw materials purchased and used—$6,200.
Wages of production workers—$7,400.
Salaries of administrative and sales personnel—$3,000.
Depreciation on manufacturing equipment—$4,400.
Depreciation on administrative equipment—$2,200.
Required
a. Determine the total product cost for the year.
b. Determine the total cost of the ending inventory.
c. Determine the total of cost of goods sold.
Answer and Explanation:
The computation is shown below;
a. The total product cost is
Raw materials purchased and used $6,200
Wages of production workers $7,400
Depreciation on manufacturing equipment $4,400
Total Product Cost $18,000
b. The total cost of the Inventory is
Units Completed = 3,000 units
Units Sold = 2,400 units
SO, the Units in ending inventory units is 600 units
Now the Total cost of the Inventory is
= $18,000 × [600 ÷ 3,000 ]
= $3600
c. The total cost of goods sold is
= $18,000 × [2,400 ÷ 3,000 ]
= $14,400
Suppose a profit-maximizing monopoly is able to employ group price discrimination. The marginal cost of providing the good is constant and the same in both markets. The marginal revenue the firm earns on the last unit sold in the market with the lower price will be:_________
Answer:
The description as per the given question is described in the below section.
Explanation:
The investor receives upon that final unit offered on the organization at the maximum bidder, equivalent to the average income.⇒ [tex]MR=MC[/tex]
Whenever such monopoly generates a lesser volume, [tex]MR > MC[/tex] could generate greater margins at these production additions to lowering production.do/your/assignment/did/you?
Answer:
Did you do your assignment?
This is your answer
Answer:
I did mine did you?
Explanation:
Accounts payable increase $9,000
Accounts receivable increase 4,000
Salaries payable decrease 3,000
Amortization expense 6,000
Cash balance, January 1 22.000
Cash balance, December 31 15,000
Cash paid as dividends 29,000
Cash paid to purchase land 90,000
Cash paid to retire bonds payable at par 60,000
Cash received from issuance of common stock 35,000
Cash received from sale of equipment 17,000
Depreciation expense 29,000
Gain on sale of equipment 4,000
Inventory decrease 13,000
Net income 76,000
Prepaid expenses increase 2,000
Cash Flow statement - indirect method
Cash Flow
Net Income 76,000.00
Gain on Sale of Equipment $(4,000.00)
Depreciation 29,000.00
Amortization Expense 6,000.00 $31,000.00
Adjustments
Decrease in inventory $13,000.00
Gain On sale of equipment (4,000.00)
Decrease In accrued Liability (3,000.00)
Increase in prepaid expenses (2.000.00)
Increase in Accounts Payable 9,000.00 13,000.00
120,000.00
Determine which of the above affects the Investing Activities (IA) and which affects the Financing Activities (FA). Note: Insert IA or FA next to the information above, or fill in the information below.
Answer:
a. The items that affect Investing Activities (IA) are as follows:
Cash paid to purchase land 90,000
Cash received from sale of equipment 17,000
b. The items that affect Financing Activities (FA) are as follows:
Cash paid as dividends 29,000
Cash paid to retire bonds payable at par 60,000
Cash received from issuance of common stock 35,000
Explanation:
Using the items that affect the Investing Activities (IA) and the Financing Activities (FA) in the answer above, the indirect cash flow statements can be completed as follows:
Cash Flow statement - indirect method
For the Year Ended December 31, ...
Details $ $
Net Income 76,000.00
Gain on Sale of Equipment (4,000.00)
Depreciation 29,000.00
Amortization Expense 6,000.00
Adjustments
Decrease in inventory 13,000.00
Gain On sale of equipment (4,000.00)
Decrease In accrued Liability (3,000.00)
Increase in prepaid expenses (2.000.00)
Increase in Accounts Payable 9,000.00
Cash flows from operating activities 120,000.00
Investing Activities (IA)
Cash paid to purchase land (90,000.00)
Cash received from sale of equipment 17,000.00
Cash flows from investing activities 73,000.00
Financing Activities (FA)
Cash paid as dividends (29,000.00)
Cash paid to retire bonds payable at par (60,000.00)
Cash from common stock issued 35,000.00
Cash flows from financing activities 54,000.00
Net cash outflows for the year (7,000.00)
Cash balance, January 1 22,000.00
Cash balance, December 31 15,000.00
When making a big decision, there's a six-step process that can help you.
True
False
Answer:True
Explanation:
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
Evaluation of how profit will change based on an alternative course of action
Possible result of using an inappropriate overhead allocation method
Revenue forgone from an alternative use of an asset
Strategy that focuses on reducing the influence of bottlenecks
Not relevant to future decisions
Product cost distortion
Opportunity cost
Differential analysis
Sunk cost
Theory of constraints
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
Recognizes that a dollar today is worth more than a dollar tomorrow
Often referred to as the discounted cash flow method
Also referred to as capital budgeting
Average income as a percentage of average investment
Can be determined by initial cost divided by annual net cash inflow of an investment
Cash payback period
Capital investment analysis
Average rate of return
Net present value method
Time value of money concept
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match the following descriptions and examples with the four performance perspectives in the balanced scorecard.
Clear All
Focuses on operational efficiencies and issues like improving manufacturing performance
Focuses on obtaining and retaining customers and customer base
Focuses on traditional accounting measures of performance, such as net income and cash flow
Focuses on research and development initiatives and employee training, retention, and satisfaction efforts
Customer
Learning and growth
Internal processes
Financial
Answer:
1. Match each phrase that follows with the term it describes:
a. Evaluation of how profit will change based on an alternative course of action
Correct term: Differential analysis
b. Possible result of using an inappropriate overhead allocation metho
Correct term: Product cost distortion
c. Revenue forgone from an alternative use of an asset
Correct term: Opportunity cost
d. Strategy that focuses on reducing the influence of bottlenecks
Correct term: Theory of constraints
e. Not relevant to future decisions
Correct term: Sunk cost
2. Match each phrase that follows with the term it describes:
a. Recognizes that a dollar today is worth more than a dollar tomorrow
Correct term: Time value of money concept
b. Often referred to as the discounted cash flow method
Correct term: Net present value method
c. Also referred to as capital budgeting
Correct term: Capital investment analysis
d. Average income as a percentage of average investment
Correct term: Average rate of return
e. Can be determined by initial cost divided by annual net cash inflow of an investment
Correct term: Cash payback period
3. Match the following descriptions and examples with the four performance perspectives in the balanced scorecard:
a. Focuses on operational efficiencies and issues like improving manufacturing performance
Correct option: Internal processes
b. Focuses on obtaining and retaining customers and customer base
Correct option: Customer
c. Focuses on traditional accounting measures of performance, such as net income and cash flow
Correct option: Financial
d. Focuses on research and development initiatives and employee training, retention, and satisfaction efforts
Correct option: Learning and growth
Yerbury Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.
Feb. 2 Purchased for cash 5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.
Mar. 6 Received dividends of $0.30 per share on Wong Inc. stock.
June 7 Purchased 2,000 shares of Wong Inc. stock for $26 per share plus a $125 brokerage commission.
July 26 Sold 6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold.
Sept. 25 Received dividends of $0.40 per share on Wong Inc. stock.
Answer:
Yerbury Corp.
Journal Entries:
Feb. 2 Debit Investment in Wong Inc. $106,110
Credit Cash $106,110
To record the purchase of 5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.
Mar. 6 Debit Cash $1,590
Credit Dividend Revenue $1,590
To record the receipt of dividends of $0.30 per 5,300 shares on Wong Inc. stock.
June 7 Debit Investment in Wong Inc. $52,125
Credit Cash $52,125
To record the purchase of 2,000 shares of Wong Inc. stock for $26 per share plus a $125 brokerage commission.
July 26 Debit Cash $210,000
Credit Investment in Wong Inc. $124,354
Credit Gain from Investment in Wong Inc. $85,646
To record the sale of 6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission.
Sept. 25 Debit Cash $ 520
Credit Dividends revenue $ 520
To record the receipt of dividends of $0.40 per 1,300 shares on Wong Inc. stock.
Explanation:
a) Data and Analysis:
Feb. 2 Investment in Wong Inc. $106,110 Cash $106,110
5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.
Mar. 6 Cash $1,590 Dividend Revenue $1,590
dividends of $0.30 per share on Wong Inc. stock.
June 7 Investment in Wong Inc. $52,125 Cash $52,125
2,000 shares of Wong Inc. stock for $26 per share plus a $125 brokerage commission.
July 26 Cash $210,000 Investment in Wong Inc. $124,354 Gain from Investment in Wong Inc. $85,646
6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold.
Sept. 25 Cash $ 520 Dividends revenue $ 520 dividends of $0.40 per 1,300 shares on Wong Inc. stock.
ABC has not ordered linen in some time, but when it did order in the past it ordered frequently, and its orders were of the highest monetary value. Under the given circumstances, Ajax is most likely to have an RFM score:________
Answer: 511
Explanation:
The RFM model enables a company to group its customers by their buying habits such that they can be treated accordingly to ensure repeated sales.
The three categories are:
Date of last purchaseFrequency of purchaseMonetary value of purchasesThe range is 0 - 5 with a higher number representing higher scores.
This particular customer will get a 5 for date of last purchase to indicate that it has been a while since they last purchased.
They will get a 1 for frequency because they haven't purchased in high frequency in a while but because they used to buy a lot, we give it a 1 instead of 0.
They will also get a 1 for the monetary value for the same reason as above.
You have been asked to review the December 31, 2021, balance sheet for Champion Cleaning. After completing your review, you list the following three items for discussion with your superior: An investment of $30,000 is included in current assets. Management has indicated that it has no intention of liquidating the investment in 2022. A $100,000 note payable is listed as a long-term liability, but you have determined that the note is due in 10 equal annual installments with the first installment due on March 31, 2022. Deferred revenue of $60,000 is included as a current liability even though only two-thirds will be recognized as revenue in 2022, and the other one-third in 2023.
Required:
Determine the appropriate classification of each of these items.
Answer:
Champion Cleaning
Appropriate Classifications:
Long-term assets:
Investment of $30,000
Current liabilities:
Short-term note payable $10,000
Short-term deferred revenue $40,000
Long-term liabilities:
Long-term note payable $90,000
Long-term deferred revenue $20,000
Explanation:
a) Data and Analysis:
Investment of $30,000 = long-term asset
Note payable:
Short-term note payable = $10,000 ($100,000/10)
Long-term note payable = $90,000 ($100,000/10 * 9)
Deferred Revenue:
Short-term deferred revenue = $40,000 ($60,000 * 2/3)
Long-term deferred revenue = $20,000 ($60,000 * 1/3)
Jim promises to marry Martha if Martha agrees to pay him a $10,000/month allowance as long as they are wedding. If this contract was not written, then once they are married Jim can still enforce the contract if Martha refuses to pay.
a. True
b. False
Jim promises to marry Martha if Martha agrees to pay him a $10,000/month allowance as long as they are wedding. If this contract was not written, then once they are married Jim can still enforce the contract if Martha refuses to pay. This statement is True.
What is Contract?A contract is an agreement between parties that establishes legal duties for both parties. The fundamental components necessary for the agreement to be a valid offer and acceptance, adequate consideration, capacity, and legality are: mutual assent, expressed through a contract-compliant offer.
Contracts are legal obligations that contain promises. State common law primarily governs contract law, and while broad contract law is prevalent nationwide, different state courts may have different interpretations of particular contract clauses.
Contracts are created when one party's promise results in the creation of a duty between the parties. A promise must be given in exchange for sufficient consideration in order for it to be regarded as a contract. There are two various theories or definitions to take into account: Benefit-Detriment theory of consideration and the bargain theory of consideration
To know more about Contract follow the link.
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7. How can you use nonverbal communication to express an idea to someone?
On December 31, the trial balance shows wages expense of $390. An additional $130 of wages was earned by the employees, but has not yet been paid. Analyze this adjustment for wages using T accounts, and then formally enter this adjustment in the general journal. (Trial balance is abbreviated as TB.)
(Income Statement)
Wages Expense
(Balance Sheet)
Wages Payable
Page:
CREDIT DATE DOC. POST NO. REF ACCOUNT TITLE DEBIT 1 20- Dec. 31 1 2 2
Answer:
(Income Statement)
Wages Expenses
Trial balance $390 |
Adjustment $130 |
Balance $520 |
(Balance Sheet)
Wages Payable
| Adjustment $130
Date Account Titles Debit Credit
Dec 31 Wages expenses $130
2020 Wages payable $130
Which types of post secondary education are examples of traditional academic education? Check all that apply
A. Associate Degree
B. Apprenticeship
C. Bachelor’s Degree
D. Technical School Degree
The following data are taken from the financial statements of Crane Company.
2022 2021 Accounts receivable (net), end of year $ 567,900 $ 555,000 Net sales on account 4,831,000 4,179,000 Terms for all sales are 1/10, n/45
1) Compute for each year the accounts receivable turnover. At the end of 2015, accounts receivable was $511,500. (Round answers to 1 decimal place, e.g. 12.5.)
2) Compute for each year the average collection period. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)
Answer and Explanation:
The computation is shown below;
(1)
As we know that
The receivables turnover = Net credit sales ÷ Average account receivable
For the year 2017
Receivables turnover = $4,831,000 ÷ $561,450 = 8.60 times
for the year 2016:
Receivables turnover = $4,179,000 ÷ $533,250 = 7.84 times
Average net AR = (Beginning AR + Ending AR) ÷ 2
2017 = ($567,900 + $555,000) ÷ 2 = $561,450
2016 = ($555,000 + $511,500) ÷ 2 = $533,250
(2)
The average collection period = 365 days ÷ Receivables turnover
For 2017:
Average collection period = 365 ÷ 8.60 = 42.44 days
For 2016
Average collection period = 365 ÷ 7.84 = 46.56 days
Write about why it is important for world leaders to make just decisions for their people and to treat neighboring countries with respect.
Answer: Approaches to authority and decision making are not the only ways in which cultures differ, but they are arguably the most important in the leadership context. ... (For a more general treatment of cultural differences, take a look at my May 2014 ... with companies in those countries, you might have noticed that a lot of people ...
Explanation:
The specific-factors model is often referred to as the short-run model. Why is this the case and how does it relate to the marginal product of labor (MPL) in each sector and the production possibilities frontier (PPF)?
Answer:
A short run model is one in which particular means of production such as land, are fixed and cannot be moved between sectors or businesses. There is unrestricted labour movement amongst these different sectors, therefore each market's marginal product of labour is identical. As a result, an economy's overall workforce level is optimal.
Because greater and greater labour inputs are introduced, there are decreasing returns to scale, as well as the marginal product of labour continues to fall. As a result, the PPF curve is indeed concave and slants downward. To achieve full employment, the country can export or import at any time. The United States, for example, both produces and imports oil.
Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of selling price, and gross profit is estimated to be 25% of the selling price. Determine the value of inventory applying the lower-of-cost-or-market rule to each individual inventory item.
Answer:
Item Inventory at the lower-of-cost-or-market
#1 $214.50
#2 $240.00
#3 $266.50
#4 $315.00
#5 $422.50
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See attached pdf file for the complete question.
Also note: See the attached excel file for the determination of the value of inventory by applying the lower-of-cost-or-market rule.
From the attached excel file, we have:
Item Inventory at the lower-of-cost-or-market
#1 $214.50
#2 $240.00
#3 $266.50
#4 $315.00
#5 $422.50
Tiger, Inc., a calendar year S corporation, is owned equally by four shareholders: Ann, Becky, Chris, and David. Tiger owns investment land that was purchased for $160,000 four years ago. On September 14 of the current year when the land is worth $240,000, it is distributed to David. Assume that David's basis in his S corporation stock is $270,000 on the distribution date.
Required:
Discuss any Federal income tax ramifications.
Answer:
Capital gain $80,000
Shareholder $20,000
David Basis $50,000
Explanation:
Calculation to Discuss any Federal income tax ramifications
Calculation to discuss the CORPORATE LEVEL, capital gain Federal income tax ramifications
Using this formula
Capital gain =Land Worth - Purchased value of land
Let plug in the formula
Capital gain= $240,000 - $160,000
Capital gain= $80,000
Therefore CORPORATE LEVEL, capital gain Federal income tax ramifications will be $80,000
SHAREHOLDERS
Based on the information given we have 4 shareholders which means that the amount each shareholder held will be:
Shareholder= $80,000 ÷ 4
Shareholder= $20,000
DAVID BASIS
Based on the information given David Basis in S corporation will be calculated as:
David Basis= $270,000 - $240,000 + $20,000
David Basis= $50,000
Therefore David Basis in S corporation will be $50,000
list three classified ways of getting into small business?
Answer:
sole , partnership , team business
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