Answer:
Tyler Lambert and Jayla Yost, LLC.
1. Income Statement for the year ended December 31, 2016
15 Professional Fees 394,500
16 Salary Expense 155,000
17 Depreciation Expense-Building 15,600
18 Property Tax Expense 12,300
19 Heating and Lighting Expense 8,400
20 Supplies Expense 5,800
21 Depreciation Exp.-Office Equipment 5,300
22 Miscellaneous Expense 4,100 206,500
Net income 188,000
Division of net income to the partners:
Lambert Yost Total
Salary allowance $45,100 $54,500 $99,600
Interest on capital 13,540 8,810 22,350
Share of the remainder 33,025 33,025 66,050
Total $91,665 $96,335 $188,000
2. Statement of Partnership Equity for the year 2016:
Lambert Yost Total
Balance $135,400 $88,100 $223,500
Drawings (49,500) (59,900) (109,400)
Share of profit 91,665 96,335 188,000
Capital balance $177,565 $124,535 $302,100
3. Balance Sheet as of December 31, 2016
1 Cash 33,600
2 Accounts Receivable 47,500
3 Supplies 2,200 $83,300
Long-term assets:
4 Land 119,500
5 Building 157,200
6 Accumulated Depreciation-Building (67,400)
7 Office Equipment 63,800
8 Accumulated Depreciation-Equipment (21,700) $251,400
Total assets $334,700
Liabilities and Partners' Equity:
9 Accounts Payable 27,500
10 Salaries Payable 5,100
Total liabilities $32,600
Partners' Equity:
11 Tyler Lambert, Capital 177,565
12 Jayla Yost, Capital 124,535
Total equity $302,100
Total liabilities and equity $334,700
Explanation:
a) Data and Calculations:
Lambert and Yost
ADJUSTED TRIAL BALANCE
December 31, 20Y3
ACCOUNT TITLE DEBIT CREDIT
1 Cash 33,600
2 Accounts Receivable 47,500
3 Supplies 2,200
4 Land 119,500
5 Building 157,200
6 Accumulated Depreciation-Building 67,400
7 Office Equipment 63,800
8 Accumulated Depreciation-Office Equipment 21,700
9 Accounts Payable 27,500
10 Salaries Payable 5,100
11 Tyler Lambert, Capital 135,400
12 Tyler Lambert, Drawing 49,500
13 Jayla Yost, Capital 88,100
14 Jayla Yost, Drawing 59,900
15 Professional Fees 394,500
16 Salary Expense 155,000
17 Depreciation Expense-Building 15,600
18 Property Tax Expense 12,300
19 Heating and Lighting Expense 8,400
20 Supplies Expense 5,800
21 Depreciation Exp.-Office Equipment 5,300
22 Miscellaneous Expense 4,100
23 Totals 739,700 739,700
Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards.
Standard Quantity Standard Price or Rate Standard Cost
Direct material 6.00 pounds $1.10 per pound $6.60
Direct labor 0.30 hour $6.00 per hour 1.80
Total $8.40
During June, Orion purchased 227,000 pounds of direct material at a total cost of $274,670. The total wages for June were $72,576, 75 percent of which were for direct labor. Orion manufactured 36,000 dartboards during June, using 205,200 pounds of the direct material purchased in June and 11,520 direct-labor hours.
Required:
Compute the following variances for June.
Direct-material price variance ___________ ___________
Direct-material quantity variance ___________ ___________
Direct-material purchase price variance ___________ ___________
Direct-labor rate variance ___________ ___________
Direct-labor efficiency variance ___________ ___________
Answer:
Orion Corporation
Direct material price variance = $22,572 unfavorable
Direct material quantity variance = $71,280 favorable
Direct- labor rate variance = $14,688 favorable
Direct-labor efficiency variance = $1,296 unfavourable
Explanation:
a) Data and Calculations:
Standard Standard Price Standard
Quantity or Rate Cost
Direct material 6.00 pounds $1.10 per pound $6.60
Direct labor 0.30 hour $6.00 per hour 1.80
Total $8.40
Purchase of 227,000 pounds of direct materials = $274,670
Unit price per pound = $1.21
Total wages for June = $72,576
Direct labor costs = $54,432 ($72,576 * 75%)
Direct labor hours = 11,520
Direct labor rate = $4.725 ($54,432/11,520)
Indirect labor costs = $18,144
Number of dart boards manufactured = 36,000
Direct materials used = 205,200
Usage per unit of dart board = 5.7 (205,200/36,000)
Direct material price variance = (Standard price - Actual price) * Actual materials used
= ($1.10 - $1.21) * 205,200
= $22,572 unfavorable
Direct material quantity variance = (Standard quantity - Actual quantity) * Standard rate
= (216,000 - 205,200) * $6.60
= $71,280 favorable
Direct- labor rate variance = (Standard rate - Actual rate) * Actual direct-labor hours
= ($6.00 - $4.725) * 11,520
= $14,688 favorable
Direct-labor efficiency variance = (Standard hours - Actual hours) * Rate
= (10,800 - 11,520) * $1.80
= $1,296 unfavourable
Do you think that some people have difficulty talking to others face-to-face because of how prevalent texting is today? When you have an issue that you need to discuss with someone, do you prefer to sit down and talk it out, handle it through texting or social media, or some other form of written communication? Write your response to the following questions in a 5-7 sentence paragraph below (Please help asap)
Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area:
Cost of new equipment and timbers $500,000
Working capital required 100,000
Annual net cash receipts 120,000
Cost to construct new roads in three years 40,000
Salvage value of equipment in four years 65,000
Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth
The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company's required rate of return is 20%.
Required:
Determine the net present value of the proposed mining project.
Answer:
Windhoek Mines, Ltd.
The net present value of the proposed mining project is:
= ($232,950).
Explanation:
a) Data and Calculations:
Cost of new equipment and timbers = $500,000
Working capital required = $100,000
Annual net cash receipts = $120,000
Cost to construct new roads in three years = $40,000
Salvage value of equipment in four years = $65,000
Estimated useful life of mine = 4 years
Working capital released in four years = $100,000
Required rate of return = 20%
Cash Flows PV factor Present Value
Cost of new equipment and timbers $500,000 1 -$500,000
Working capital required 100,000 1 -100,000
Annual net cash receipts 120,000 2.589 310,680
Cost to construct new roads in 3 years 40,000 0.579 -23,160
Salvage value of equipment in 4 years 65,000 0.482 31,330
Working capital released in 4 years 100,000 0.482 48,200
Net present value ($232,950)
Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $432,605, would have a useful life of 7 years, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $77,500 per year. The internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes.):____.
a. 15%.
b. 54%.
c. 17%.
d. 12%.
Answer:
6%
Explanation:
The computation of the internal rate of return is shown below:
We know that
Initial investment = Annual cash inflows × PVIFA factor (rate,nper)
$432,605 = $77,500 × PVIFA(rate,7)
PVIFA(rate,7) = $432,605 ÷ $77,500
PVIFA (rate,7) = 5.582
Now we use the PVIFA table
So here the rate that should be considered is 6%
Record the journal entry that would be made by a nongovernmental, not-for-profit organization involved in medical research.
a. The entity received $1,500 in cash contributions. Of that amount, $1,000 is to be used for medical resear.
b. The entity received pledges of $700,000 for its endowment fund. All pledges will be collected next year.
c. The entity received donated services of $1,200 from medical researchers who helped with the entity's on-going drug development research. It also received $300 in donated services from students, who helped clean the research facilities.
d. The entity paid medical research operating expenses of $5,000 that were related to restricted net assets it had received in prior years.
Answer:
S/n Journal Entry Debit Credit
1 Cash $1,500
Contributions-Unrestricted $500
Contributions-Temporarily Restricted $1,000
2 Pledges Receivable $700,000
Contributions-Permanently Restricted $700,000
3 Medical Research Program Expenses $1,200
Contributions-Unrestricted $1,200
4 Medical Research Program Expenses $5,000
Cash $5,000
Net Assets Release - Satisfaction of $5,000
Program Restrictions - Temporarily
Restricted
Net Assets Released- Satisfaction of $5,000
Program Restrictions-Unrestricted
Use the following information to determine this company's cash flows from financing activities.
a. Net income was $465,000.
b. Issued common stock for $73,000 cash.
c. Paid cash dividend of $18,000.
d. Paid $130,000 cash to settle a note payable at its $130,000 maturity value.
e. Paid $118,000 cash to acquire its treasury stock.
f. Purchased equipment for $93,000 cash.
Answer: Net cash used/ spent was $193,000
Explanation:
Cash from Financing activities involves cash transactions in relation to Equity (including dividends paid) and long term debt as these are the chief providers of cash to finance the business.
Cash from financing activities is:
= Issuance of common stock - Dividend - Settlement of Note payable - Treasury stock purchase
= 73,000 - 18,000 - 130,000 - 118,000
= -$193,000
Austin Corporation, a U.S. corporation, received the following investment income during the current year: $50,000 of dividend income from ownership of stock in a French corporation, $20,000 interest on a loan to its Dutch subsidiary, $40,000 royalty from its 50 percent owned Irish venture, and $30,000 capital gain from sale of its stock in a Brazilian corporation. How much of Austin's income is treated as foreign source
Answer:
Austin's income is treated as a foreign source $110,000
Explanation:
The computation of the amount of income treated as the foreign source is given below;
Dividend income arise from the ownership of stock in a French corporation $50,000
Add: Interest on a loan to its Dutch subsidiary $20,000
Add: Royalty from its 50 percent owned Irish venture $40,000
Austin's income is treated as a foreign source $110,000
The best definition of a financial restatement is:________.
a. A company, either voluntarily or under prompting by its auditors or regulators, revises its public financial information that was previously reported
b. An adjustment of financial information due to an error correction
c. A company, either voluntarily or under prompting by its auditors or regulators, revises its public financial information for the current period
d. All are part of the definition
Lions Incorporation produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $170 per machine hour, and the activity rate for Inspection is $510 per batch. The activity drivers are used as follows:
Product A Product X Total
Machine hours 1,900 3,900 5,800
Number of batches 45 22 67
What is the amount of Machining cost assigned to Product X?
a. $780,000
b. $22,500
c. $380,000
d. $950,000
Answer:
Lions Incorporation
The amount of Machining cost assigned to Product X is:
= $663,000.
Explanation:
a) Data and Calculations:
Product A Product X Total
Activities used Machining Inspection
Activity driver Machine hours Number of batches
Activity rate $170/ mh $510/ batch
Usage of activity drivers:
Machine hours 1,900 3,900 5,800
Number of batches 45 22 67
The amount of Machining cost assigned to Product X:
= 3,900 * $170 = $663,000
A bank has the following balance sheet: SETS RETURN % MILLION $ LIABILITIES COST % MILLION $ Cash 0.00 35 Fixed-rate Deposits 3.5 290 Securities 4.00 300 Variable-rate Deposits 2.00 260 Short-term loans 6.00 225 Fed funds 2.50 75 Long-term fixed rate Loans 6.75 250 Long-term Debt fixed rate 5.50 150 EQUITY 35 Total 810 Total 810 If the spread effect is zero and all interest rates increase 60 basis points, the bank's NII will change by ________over the year. Group of answer choices $700,000 -$1,140,000 $1,140,000 $0 -$700,000
Answer:
$1,140,000
Explanation:
Calculation to determine what the bank's NII will change by
First step is to calculate the bank's one-year repricing gap
Using this formula
Repricing gap=RSAs - RSLs
Where,
RSAs =Securities+Short-term loans
RSLs =Variable-rate Deposits+Fed funds
Let plug in the formula
($ Million)
Repricing gap=[$300 + $225] - [$260 + $75]
Repricing gap=$190
Now let calculate what the bank's NII will change by
Using this formula
Change in bank's NII=Repricing gap*Interest rates
Let plug in the formula
Change in bank's NII=$190,000,000*0.0060
Change in bank's NII =$1,140,000
Therefore If the spread effect is zero and all interest rates increase 60 basis points, the bank's NII will change by $1,140,000
On January 2, 2021, Sanborn Tobacco Inc. bought 10% of Jackson Industry’s capital stock for $93 million. Jackson Industry’s net income for the year ended December 31, 2021, was $123 million. The fair value of the shares held by Sanborn was $104 million at December 31, 2021. During 2021, Jackson declared a dividend of $63 million. 2. Assume that Sanborn sold the stock on January 2, 2022 for $116 million. Prepare the journal entries Sanborn would use to record
Answer:
Sanborn Tobacco Inc.
Journal Entries:
1. January 2, 2021,
Debit Investment in Jackson Industry $93 million
Credit Cash $93 million
To record the purchase of 10% of Jackson Industry’s capital stock.
December 31, 2021,
Debit Investment in Jackson Industry $12.3 million
Credit Share from Net Income $12.3 million
To record the share from the net income of Jackson Industry.
December 31, 2021
Debit Investment in Jackson Industry $11 million
Credit Unrealized Gain from Investment $11 million
To record the unrealized gain on fair value of the investment.
2021,
Debit Dividends Receivable $6.3 million
Credit Investment in Jackson Industry $6.3 million
To record the dividends receivable and reverse the part of the income already recorded.
2. January 2, 2022
Debit Cash $116 million
Credit Investment in Jackson Industry $110 million
Credit Realized Gain from Investment $6
To record the gain from the sale of the investment.
Explanation:
a) Data and Analysis:
Transaction Date
January 2, 2021, Investment in Jackson Industry $93 million Cash $93 million 10% of Jackson Industry’s capital stock for .
December 31, 2021, Investment in Jackson Industry $12.3 million Share from Net Income $12.3 million
December 31, 2021 Investment in Jackson Industry $11 million Unrealized Gain from Investment $11 million
During 2021, Dividends Receivable $6.3 million Investment in Jackson Industry $6.3 million
2. January 2, 2022 Cash $116 million Investment in Jackson Industry $110 million Realized Gain from Investment $6
The two most common types of accounts to manage your money are _________ and __________.
A. principal and savings accounts
B. online banking and checking accounts
C. checking and savings accounts
D. CD's and stocks
Answer:
c, checking and saving accounts
If an employee's family member is seriously ill, employers are required to allow the employee up to how many weeks off?
Question 2 options:
a) 1
b) 2
c) 8
d) 12
Answer: 12 weeks
Explanation:
If an employee's family member is seriously ill, the employers are required to allow the employee up to 12 weeks off.
According to the Family Medical Leave Act, it should be noted that the individuals who work for the employers who have 50 or more employees can be given about 12 weeks of unpaid leave in a year which they can use to take care of family members that are seriously sick or care for new children or seriously ill family members, or for themselves if they're seriously sick.
On January 1, 2021, Tabitha Designs purchased a patent for $384,000 giving it exclusive rights to manufacture a new type of synthetic clothing. While the patent had a remaining legal life of 15 years at the time of purchase, Tabitha expects the useful life to be only eight more years. In addition, Tabitha purchased equipment related to production of the new clothing for $149,000. The equipment has a physical life of 10 years, but Tabitha plans to use the equipment only over the patent's service life and then sell it for an estimated $39,000. Tabitha uses straight-line for all long-term assets. The amount to expense in 2024 related to the patent and equipment should be: _________
Answer:
$61,750
Explanation:
Amortization expenses per year = Purchase Cost of Patent/Useful life of the Assets
Amortization expenses per year = $384,000/8 years
Amortization expenses per year = $48,000
Net Value for Depreciation = Purchase Cost of Machine - Salvage Value
Net Value for Depreciation = $149,000 - $39,000
Net Value for Depreciation = $110,000
Depreciation per year = Net Value for Depreciation/Useful life of the Assets
Depreciation per year = $110,000 / 8 years
Depreciation per year = $13,750
The amount to expense in 2024 related to the patent and equipment should be:
Amortization expenses = $48,000
Depreciation expenses = $13,750
Total $61,750
A broker-dealer and its agent are registered in State A. The agent tells a customer in State A that he is prohibited from making an offer of a security in that State because the security is not registered in State A and the security is non-exempt. However, he tells the customer that he can accept an offer to buy that security from the client because then the transaction would be exempt. Which statement is TRUE?
Answer:
There is a violation of Uniform State Law because the agent has made an offer to sell an unregistered non-exempt security in that State
Explanation:
The Uniform State Securities Law is also called blue sky law, and they are put in place at the State level to prevent fraud and to enforce security regulation.
This law was set up to handle investments that do not occur at the federal level. These are out of the purview of the SEC so states handle them.
In the given scenario the agent is trying to make a non exempt security exempt by buying it from the client.
This is an attempt to sell the securities to investors through fraudulent means and it is a violation of Uniform State Law
What contribution does the retail sector make to the UK economy ?
Answer:
The retail sector consistently accounts for around 5% of Gross Value Added in the UK economy. 14% of all UK investment made by large non financial-sector firms is made by large retailers. Retailers purchase around £180bn worth of goods for resale, supporting £47bn of output from other sectors.
Answer:
The retail sector consistently accounts for around 5% of Gross Value Added in the UK economy.
Explanation:
14% of all UK investment made by large non financial-sector firms is made by large retailers. from other sectors. Retailers pay out £4 billion every year in dividends to shareholders, around 5% of the UK total.
Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2021, for $4.1 million. The patent will be used for five years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for $180,000 at the end of five years. Compute Granite's patent amortization for 2021, assuming the straight-line method is used.
Answer:
the patent amortization expense for the year 2021 is $231,000
Explanation:
The computation of the patent amortization is shown below:
= (Acquired value of the patent - ending value) ÷ legal life
= ($4,800,000 - $180,000) ÷ 20 years
= $231,000
We simply applied the above formula so that the correct value could come
Hence, the patent amortization expense for the year 2021 is $231,000
Your company, ABC Reading, writes unique Open- GLbased reading software for children in grade school. ABC employs about 30 sales representatives who interact with school districts around the nation to sell and support your software. ABC has given each sales representative a powerful laptop on which to demonstrate your 3D software to principals and district representatives. Because of the nature of their jobs, sales reps are constantly connecting their laptops to school and hotel networks during the day and to your corporate network via VPN. You are worried about viruses and worms entering your corporate network through one of their laptops. What protections and preventions would you take to guard against this?
Answer: See explanation
Explanation:
To guard against viruses and worms from entering the corporate network through one of their laptops, it is important that anti-virus software should be installed into the system and the software should be updated regularly.
Furthermore, firewall can help in the prevention of unauthorized access to the system. Data encryption can also be done in order to prevent day piracy.
Lastly, strong passwords and security protocols can be utilized as well.
What is the relationship between an emergency fund and credit/loans
Answer:
Explanation:
Assets in an emergency fund tend to be cash or other highly liquid assets. This reduces the need to either draw from high-interest debt options, such as credit cards or unsecured loans, or undermine your future security by tapping into retirement funds.
An emergency fund is where you save money for unexpected expenses. Using credit/loans is when you borrow money for stuff, but you have to pay back monthly payments.
Choose all of the fluctuations in the business cycle that could experience a negative output gap.
A)
expansion
B)
peak
C)
prosperity
D)
recession
E)
trough
Answer :A, D, and E
Explanation:
The right answers on USATestPrep
Expansion, recession, and trough are the fluctuations in the business cycle that could experience a negative output gap. Therefore options A, D, and E are correct.
What is the output gap?The difference between real GDP or actual production and prospective GDP is known as the GDP gap or the output gap, and it is used to measure the present economic situation relative to the business cycle. The production gap is a key macroeconomic policy indicator (in particular in the context of EU fiscal rules compliance).
The GDP gap is a controversial idea, especially because the potential GDP is not an observable metric and is frequently computed from historical GDP statistics, which might result in systemic downward biases.
A chronic, wide production gap has detrimental effects on a nation's labor market, long-term economic potential, and public finances, among other things. First, since production gaps show that employees who would prefer to work are instead idle because the economy is not generating capacity, the labor market will underperform for a longer period of time. An unemployment rate of 7.3% in October 2013 shows the slack in the US job market, compared to an average yearly rate of 4.6% in 2007 when the worst of the crisis hit.
To learn more about the output gap follow the link.
https://brainly.com/question/29556015
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Bramble, Inc. buys 1,000 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $11,500. Bramble will group the CDs into three price categories for resale, as indicated below.
Group No. of CDs Price per CD
1 100 $5
2 800 10
3 100 15
Determine the cost per CD for each group, using the relative sales value method.
Answer:
determine the cost per CD for each group using tsv method
Thailand has a comparative advantage in rice and an absolute advantage in cell phones Indonesia has a comparative advantage in cell phones and an absolute advantage in rice. According to this scenario
a. Indonesia should export rice and import cell phones
b. Indonesia should export both cell phones and rice
c. Thailand should import both cell phones and rice
d. Thailand should export rice and import cell phones
Answer:
d. Thailand should export rice and import cell phones
Explanation:
Analyzing the question, it is correct to say that Thailand should export rice and import cell phones.
To understand why this statement is correct, we need to understand the concept of comparative advantage and absolute advantage.
The comparative advantage occurs when a country has great efficiency in producing a certain good, that is, the production is specialized and therefore advantageous in relation to another country. So it is correct to say that Thailand, having a comparative advantage in rice, should export rice to achieve greater economic advantage.
The absolute advantage, on the other hand, corresponds to the production of a good with lower costs than another country, but Thailand should import cell phones because Indonesia has a comparative advantage in cell phones, which makes it more competitive than Thailand in this segment.
In response to the 2008 recession, the United States Federal Reserve enacted Quantitative Easing 1 and 2. The main purpose of these two rounds of quantitative easing was to increase the U.S. money supply. Suppose quantitative easing succeeded in increasing the U.S. monetary supply. How, if at all, should quantitative easing change the following variables? Use the neoclassical aggregate demandâ€"aggregate supply model.
A. U.S. interest rates
B. U.S. exchange rate, in units of foreign currency per U.S. dollar
C. U.S. exports
D. U.S. imports
E. U.S. price level
F. U.S. nominal output
Answer:
A. U.S. interest rates - Quantitative easing lowers interest rates because it increases the money supply, making investment cheaper because more loanable funds are available.
B. U.S. exchange rate, in units of foreign currency per U.S. dollar - quantitative easing would lower the value of the U.S. dollar in terms of foreign currency like Euro or Sterling Pound, due to a higher amount of U.S. dollars units, causing the currency to depreciate against the other currencies.
C. U.S. exports - U.S. exports under quantitative easing would rise due to the lower value of the U.S. dollar. In other words, American goods become cheaper to foreign consumers.
D. U.S. imports - U.S. imports under quantitative easing would decrease because foreign currency becomes more expensive. In other worlds, foreign goods become more costly to American consumers.
E. U.S. price level - Under a quantity theory of money view, more money supply means higher price level or inflation. However, if the economy is in recession, and the quantitative easing is backed by debt securities, the price level is not likely to rise by a lot. This is actually what happened in the U.S. during the recession: the money supply grew by a wide margin, but the price level did not rise nearly as much.
F. U.S. nominal output - Nominal output under quantitative easing will rise because more money in the economy will lower interest rates, boost investment, and raise production in the process.
Assume you are the CFO of a company that has accumulated a significant amount of cash, well beyond its foreseeable needs. The company’s CEO has asked your opinion about using the cash to repurchase company shares or using the cash to distribute an extraordinary dividend to your shareholders. In a brief memo, explain to the CEO what the pros and cons of each of these are. You may assume your company is a fictitious one and assign to it whatever circumstances you like or you may assume your company is an actual existing corporation. Your memo should include at least two references to published works like books, articles, etc.
Answer:
I believe that the best action is to repurchase stocks.
Paying a large and unexpected dividend will yield an immediate return, but it will also decrease the stock's price. On the other hand, repurchasing stocks will result in lower outstanding stocks and the same cash flows. This will result in higher stock prices. Supposedly, upper management has the duty to increase the wealth of stockholders and that is achieved through higher stock prices.
Explanation:
A certain item cost Tshs 235 per ton. the monthly requirements are 5 tons and each time the stock is replenished. There is step up of Tshs 1000. the costs of carrying inventory has been estimated at 10% of the value of the stock per year. (a) what is the optimal order quantity? (b) what is the optimal total costs? (c) determine the optimal time between to order. (d) what is the optimal number of order?
Answer:
Russian Roulete
Explanation:
If contracting parties attach materially different meanings to a contract word or term subject to more than one reasonable interpretation, the contract is void. a. True b. False
Answer:
True
Explanation:
A contract is a professional document with the set of guidelines and regulations for a business when there is a partnership between two or more people, and that should be a parameter instrument for the effectiveness of a business and compliance with the current legislation.
Every contract must be drafted in a clear and objective manner, with equal rights and obligations for all members and in such a way as not to give scope for different interpretations or clauses that benefit someone. Therefore, it is correct to state that if the contracting parties assign different meanings to words or a contractual term that gives rise to more than one interpretation, the contract will be void.
Match the accounting terms with the corresponding definitions.
1. Specific Identification
2. Materiality Concept
3. Last- In, First-Out (LIFO)
4. Conservatism
5. Consistency Principle
6. Weighted-Average
7. Disclosure Principle
8. First-In, First-Out (FIFO)
a. Treats the oldest inventory purchases as the first units sold.
b. Requires that a company report enough information for outsiders to make knowledgeable decisions.
c. Identifies exactly which inventory item was sold. Usually used for higher cost inventory.
d. Calculates a weighted average cost based on the cost of goods available for sale and the number of units available.
e. Principle whose foundation is to exercise caution in reporting financial statement items.
f. Treats the most recent/ newest purchases as the first units sold.
g. Businesses should use the same accounting methods from period to period.
h. Principle that states significant items must conform to GAAP.
Answer:
FIFO - Treats the oldest inventory purchases as the first units sold.
Disclosure Principle - A company should report enough information for outsiders to make informed decisions about the company
Specific Identification - c. Identifies exactly which inventory item was sold. Usually used for higher cost inventory.
Weighted-Average - Calculates a weighted average cost based on the cost of goods available for sale and the number of units available.
Principle whose foundation is to exercise caution in reporting financial statement items. - Conservatism
f. Treats the most recent/ newest purchases as the first units sold. - LIFO
consistency principle = g. Businesses should use the same accounting methods from period to period.
Principle that states significant items must conform to GAAP. - Materiality
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold
Leah, Inc., is proposing a rights offering. Presently there are 1,000,000 shares outstanding at $78 each. There will be 100,000 new shares offered at $70 each. a. What is the new market value of the company
Answer:
the new market value of the company is $85,000,000
Explanation:
The computation of the new market value of the company is shown below:
= Number of shares × price per share + new shares × price per share
= 1,000,000 × $78 + $70 × 100,000
= $85,000,000
Hence, the new market value of the company is $85,000,000
We simply applied the above formula so that the correct value could come
Under its executive stock option plan, N Corporation granted options on January 1, 2021, that permit executives to purchase 11.0 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $16 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. Ignoring taxes, what is the effect on earnings in the year after the options are granted to executives? (Round your answer to 1 decimal place.)
Answer:
N. Corporation
There is no effect on earnings in the year after the options are granted.
Explanation:
a) Data and Calculations:
Number of stock options granted to executives = 11.0 million
Par value of common stock = $1
Period before the vesting of interest = 8 years
Grant date = January 1, 2021
Vesting date = December 31, 2023
Exercise price on the date of grant = $16
Fair value of the options = $4 per option
Total compensation expense for the stock option = $44 million ($4 * 11 million)
b) The compensation expense is accrued starting from the vesting date and not before. Therefore, there is no effect on the earnings in the year after the options are granted to the executives.
Converse Company reported net income of $200,000 in 2020. Depreciation expense was $15,000 and amortization expense on patents was $2,500 in 2020. In addition, the balance sheet reported the following balance changes during 2020.
Decrease in accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,000
Increase in debt investments classified as available-for-sale securities. . . . .4,500
Decrease in prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Decrease in accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000
Increase in accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,500
Decrease in short-term nontrade notes payable . . . . . . . . . . . . . . . . . . . . . . .8,000
Net Cash provided by operating activities was:______.
Answer:
net cash flow from operating activities $221,000
Explanation:
The computation of the Net Cash provided by operating activities are as follows;
Cash flows from operating activities
Net income $200,000
Add: depreciation expense $15,000
Add: amortization expense is $2,500
Add: decrease in account receivable $5,000
Add decrease in prepaid expense $2,000
Less decrease in account payable -$8,000
Add increase in accrued expense $4,500
net cash flow from operating activities $221,000