Answer:
Wickersham Brothers Inc.
Statement of Cash Flows, indirect method:
Operating Activities:
Adjustment of Net Income $70,360
Add Depreciation 24,640
Cash from operations $95,000
Working capital adjustments:
Accounts receivable -$15,500
Inventory 7,750
Accounts Payable -$3,100
Salaries & Wages Payable 1,550
Income Tax expense -$17,590
Interest expense -$4,650
Cash flow from operating activities $64,460
Financing Activities:
Long-term note payable -$15,500
Common Stock $20,000
Dividend -$26,400
Cash flow from financing activities -$21,900
Investing Activities:
Equipment -$83,000
Net Cash flows ($40,440)
Explanation:
a) Balance Sheet
Assets: Current Year Prior Year
Cash $95,700 $114,900
Accounts receivable 124,000 108,500
Merchandise inventory 93,000 100,750
Property and equipment 176,000 93,000
Less: Accumulated
depreciation (50,640) (26,000)
Total assets $438,060 $391,150
Liabilities:
Accounts payable $15,500 $18,600
Salaries & Wages Payable 3,100 1,550
Notes payable, long-term 77,500 93,000
Stockholders' Equity:
Common stock 144,000 124,000
Retained earnings 197,960 154,000
Total Liabilities and
Stockholders' Equity $438,060 $391,150
b) Income Statement
Sales $420,000
Cost of goods sold 220,000
Depreciation expense 24,640
Other expenses 105,000
Net income $70,360
c) Operating Activities:
Accounts receivable -$15,500
Inventory 7,750
Accounts Payable -$3,100
Salaries & Wages Payable 1,550
Income Tax expense -$17,590
Interest expense -$4,650
Net Income $70,360
Add Depreciation 24,640
Cash from operations $95,000
d) Financing Activities:
Long-term note payable -$15,500
Common Stock $20,000
Dividend -$26,400
e) Investing Activities:
Equipment -$83,000
f) The indirect method is one of the two methods for preparing the Statement of Cash Flows. This method takes the net income and adjusts non-cash flow expenses, like depreciation. It is prepared through a reconciliation of balances, of inflows and outflows during two periods.
A bakery famous for its cupcakes opens its doors at 9 a.m. and allows each customer to purchase up to 2 cupcakes until the day's supply of cupcakes runs out. Customers begin lining up around 8 a.m. each day and the cupcakes usually run out around 9:30, leaving dozens of unserved customers disappointed. Which of the following statements about this market are true? Select all that apply.
1) The cupcakes are being sold below their equilibrium price.
2) The bakery is maximizing its short-run producer surplus.
3) The customers who receive cupcakes are the customers with the highest willingness to pay for cupcakes.
4) The bakery is not using price as the only means of allocating cupcakes to its customers.
5) Consumer surplus is being maximized.
Answer:
1) The cupcakes are being sold below their equilibrium price
3) The customers who receive cupcakes are the customers with the highest willingness to pay for cupcakes.
4) The bakery is not using price as the only means of allocating cupcakes to its customers.
.Explanation:
at equilibrium price, quantity demanded equals quantity supplied and there would be no excess demand as in the case of the bakery.
The customers who receive cupcakes are the customers with the highest willingness to pay for cupcakes because these consumers are willing to lineup for these cupcakes.
the bakery also allocates the cupcakes by time. the cupcakes are usually only available within a specific time
Determine how many of each plant stand Bobby needs to sell to breakeven. Begin by computing the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step.
Answer:
For twig stands= 24 units.
For oak stand = 6 units.
Explanation:
From the question above we are given that the Sale price for Twig and Oak plant stand are 15.00 and 42.00. We are also given that the Variable cost for Twig and Oak plant stand are 2.00 and 19.00 per unit. Thus, the value for the Contribution Margin per unit can be calculated by just subtracting Variable cost for Twig and Oak plant stand from Sale price for Twig and Oak plant stand, that is;
Contribution Margin per unit = (Sale price for Twig and Oak plant) - (Variable cost for Twig and Oak plant stand).
Contribution Margin per unit for Twig = 15.00 - 2.00 = 13.00 and the Contribution Margin per unit for oak = 42.00 - 19.00 = 23.00.
From the question, we are given that the Sales mix in units is 4(twig) and 1(oak) = 4 + 1 = 5.
Thus, the contribution margin for twig = sales mix for twig × Contribution Margin per unit for Twig = 4 × 13 = 52.
Also, the contribution margin for oak = sales mix for oak × Contribution Margin per unit for oak = 1 × 23 = 23.
Total = 52 + 23 = 75.
Hence, the Weighted Average Contribution per unit = 75 / 5 = 15.
Total Break even Sales = 450/15 = 30 units.
Thus, for twig stand; 30 × 4/5 = 24 units.
For oak = 30 × 1/5 = 6 units.
What is the proper adjusting entry at December 31. the end of the accounting period, if the balance in the prepaid insurance account is dollar 7, 750 before adjustment, and the unexpired amount per analysis of policies is. dollar 3, 250?
A. Debit Insurance Expense, dollar 3, 250; credit Prepaid Insurance. dollar 3, 250.
B. Debit Prepaid Insurance; dollar 4, 500; credit Insurance Expense, dollar 4, 500.
C. Debit Insurance Expense, dollar 4, 500; credit Prepaid Insurance, dollar 4, 500.
D. Debit Insurance Expense, dollar 7, 750; credit Prepaid Insurance, dollar 7, 750.
E. Debit Cash, dollar 7, 750; Credit Prepaid Insurance, dollar 7, 750.
Answer:
C. Debit Insurance Expense, dollar 4, 500; Credit Prepaid Insurance, dollar 4, 500
Explanation:
Date Account Title Debit Credit
Dec 31 Insurance expense $4,500
Prepaid insurance $4,500
($7,750-3,250)
Option C is correct.
Your product fails about 2% of the time, on average. Some customers purchase the extended warranty you offer in which you will replace the product if it fails. Suppose that you have currently set the price of the extended warranty at 2% of the product price. An analyst at your company argues that after purchasing the extended warranty, customers are less likely to exercise caution when using the product because they will know that they can get their product replaced. The analyst is claiming that will cause the claim rate to be than 2%. True or False: You should set the price of the extended warranty at less than 2% of the product price. True False
Answer:
The answer is going to be true
An organization is required to know, track, and record the location of all hazardous materials that it owns, controls, or generates. Group of answer choices True False
Answer: True
Explanation:
An organization is required to know, track, and record the location of all hazardous materials that it owns, controls, or generates.
It is important for the organizations to track, know and record the location of every hazardous materials it uses in order to keep the individuals in the society safe and also keep the company active.
Economists do not see any difficulty in measuring pleasure and believe that consumer behavior can be measured perfectly using of marginal values.
a. True
b. False
Answer:
b false
Explanation:
pleasure of consumers change as time goes on
Mary, a merchant, was in the business of selling flowers to local florists. Melissa was the owner of Little Flower, Inc. and she regularly purchased her flowers from Mary. One day, Melissa called Mary and ordered 20 dozen roses, 15 dozen carnations, 10 dozen daisies, baby breaths, 6 dozen tulips, and some plants. Everything totaled $1,200, and was to be delivered in 14 days. After the two ended their call, Mary sent Melissa an e-mail detailing the order and her acceptance. Melissa never responded to the e-mail. Eleven days later, Mary delivered the merchandise to Melissa, but she refused shipment. Mary sued Melissa for breach of contract. What is the likely result?
Answer:
Generally UCC rules establish that contracts involving the sale of goods worth more than $500 must be in writing and signed. But this rule doesn't apply to merchants that are involved in routine buy/sell activities. In this case, both Mary and Melissa are considered merchants and the phone call and the email are enough proof against Melissa for breach of contract. In my opinion, Mary would win the lawsuit.
Duerr company makes a $75,000, 60-day, 11% cash loan to Ryan Co. The maturity value of the loan is: (Use 360 days a year.)
Answer:
The maturity value of the loan is $76,375.00
Explanation:
The maturity value of the loan comprises of the face value of the loan plus the interest accrued over the 60-day period as shown below:
face value of the loan=$75000
interest=$75000*11%*60/360
interest on loan=$1375
maturity value=$75000+$1375
maturity value=$76,375.00
Calculate the cost of goods manufactured using the following information: Direct materials used $ 298,700 Direct labor used 132,200 Factory overhead costs 264,200 General and administrative expenses 85,700 Selling expenses 49,000 Work in Process inventory, January 1 118,700 Work in Process inventory, December 31 126,100 Finished goods inventory, January 1 232,300 Finished goods inventory, December 31 238,900
Answer:$687,700
Explanation:
$
Direct Materials 298,700
Add: Direct Labour 132,200
--------------
Prime Cost 430,900
Factory Overhead 264,200
Add: Opening WIP 118,700
Less: Closing WIP 126,100
--------------
256,800
--------------
Cost of Good Manufacture 687,700
----------------
On January 1, 2017, Eagle borrows $16,000 cash by signing a four-year, 5% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2017 through 2020.
Prepare the journal entries for Eagle to record the loan on January 1, 2017, and the four payments from December 31, 2017, through December 31, 2020.
1. Eagle borrows $16,000 cash by signing a four-year, 5% installment note. Record the issuance of the note on January 1, 2017.
2. Record the payment of the first installment payment of interest and principal on December 31, 2017.
3. Record the payment of the second installment payment of interest and principal on December 31, 2018.
4. Record the payment of the third installment payment of interest and principal on December 31, 2019.
5. Record the payment of the fourth installment payment of interest and principal on December 31, 2020
Answer:
Issuance - January 1, 2017
Cash $16,000 (debit)
Note Payable $16,000 (credit)
December 31, 2017
Interest Expense $800 (debit)
Note Payable $3,712.19 (debit)
Cash $4,512.19 (credit)
December 31, 2018
Interest Expense $614.39 (debit)
Note Payable $3,897.80 (debit)
Cash $4,512.19 (credit)
December 31, 2019
Interest Expense $419.50 (debit)
Note Payable $4,092.69 (debit)
Cash $4,512.19 (credit)
December 31, 2020
Interest Expense $214.87 (debit)
Note Payable $4,297.32 (debit)
Cash $4,512.19 (credit)
Explanation:
The Loan Amortization Schedule is most appropriate way to solve all parts of this problem.
The first step to construction of the Amortization Schedule is to determine the payments made annually, PMT (interest and principal).
Using a Financial calculator, this can be determined as ;
Pv = $16,000
r = 5%
n = 4
Fv = $0
p/yr = 1
Pmt = ?
Thus PMT is $4,512.19.
Amortisation Schedule (Extracted from Financial Calculator)
2017
Principle Payment = $3,712.19
Interest Payment = $800
Balance = $12,287.81
Accounting Entries :
Interest Expense $800 (debit)
Note Payable $3,712.19 (debit)
Cash $4,512.19 (credit)
2018
Principle Payment = $3,897.80
Interest Payment = $614.39
Balance = $8,390
Accounting Entries :
Interest Expense $614.39 (debit)
Note Payable $3,897.80 (debit)
Cash $4,512.19 (credit)
2019
Principle Payment = $4,092.69
Interest Payment = $419.50
Balance = $4,297.32
Accounting Entries :
Interest Expense $419.50 (debit)
Note Payable $4,092.69 (debit)
Cash $4,512.19 (credit)
2020
Principle Payment = $4,297.32
Interest Payment = $214.87
Balance = $0
Accounting Entries :
Interest Expense $214.87 (debit)
Note Payable $4,297.32 (debit)
Cash $4,512.19 (credit)
You used to earn $76,000 a year in your old job! Suppose you return to college and earn an MBA, after which you get an upper-management position with Yum! Brands. If the tax rates are the same as in 2012 and your starting salary is $125,000, how much will you owe in federal social insurance taxes?
Answer:
Federal social insurance taxes include OASDI taxes (Social Security) and Medicare taxes. Currently. In 2012, the Social Security tax limit was $110,100, while their was no limit on Medicare.
The Social Security tax rate was temporarily reduced during 2011 and 2012 from 6.2% to 4.2%, so your Social Security tax withholdings were $4,624.20 in 2012.
Medicare taxes did not change in 2012 and were 1.45%, so your Medicare tax withholding were $1,812.50 in 2012.
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools
Activity Cost Pool Estimated Overhead Cost Expected Activity
Labor-related $ 52,000 8,000 direct labor-hours
Machine-related $ 15,000 20,000 machine-hours
Machine setups 42,000 1,000 setups
Production orders 18,000 500 orders
Product testing $48,000 2,000 tests
Packaging $ 75,000 5,000 packages
General factory 108,800 8,000 direct labor-hours
a. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
b. Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.)"
Answer and Explanation:
a. The computation of the activity rate is shown below:
(a) (b) (a ÷ b)
Activity Estimated Expected Activity rate
Cost Pool Overhead Cost Activity
Labor-related $52,000 8,000 $6.50
direct labor-hours
Machine-related $15,000 20,000 $0.75
machine-hours
Machine setups 42,000 1,000 setups $42
Production orders 18,000 500 orders $36
Product testing $48,000 2,000 tests $24
Packaging $75,000 5,000 packages $15
General factory 108,800 8,000 $13.60
direct labor-hours
Total $358,800
b. The company predetermined overhead rate is shown below:
= Total estimated overhead cost ÷ direct labor hours
= $358,800 ÷ 8,000 direct labor hours
= $44.85
A company is considering two options for the production of a part needed downstream
in the manufacturing process. Particulars are as follows:
Specialized automation: Fixed Costs = $9,000 / month Variable Cost / Unit = $2
General automation: Fixed Costs = $3,000 / month Variable Cost / Unit = $5
1. What is the monthly break-even quantity for choosing between the two automation approaches?
a. 1,000 units
b. 2,000 units
c. 6,000 units
d. 12,000 units
2. For a monthly volume of 3,000 units, which automation approach should be chosen?
a. Specialized automation
b. General automation
c. Either approach is acceptable, because costs are the same for either option at 3,000 units.
d. Can’t be determined with information given.
Answer:
1= B
2= A
Explanation:
Giving the following information:
Specialized automation:
Fixed Costs = $9,000 / month
Variable Cost / Unit = $2
General automation:
Fixed Costs = $3,000 / month
Variable Cost / Unit = $5
First, we need to structure the costs formula:
Specialized automation:
Total cost= 9,000 + 2x
x= production
General automation:
Total cost= 3,000 + 5x
x= production
To calculate the indifference point, we need to equal both formulas:
9,000 + 2x = 3,000 + 5x
6,000=3x
2,000= x
The indifference point is 2,000 units.
Finally, we need to calculate which process is more convenient for 3,000 units:
Specialized automation:
Total cost= 9,000 + 2*3,000= $15,000
General automation:
Total cost= 3,000 + 5*3,000= $18,000
Researchers often are particularly interested in the subset of a market that contributes most to sales (for example, heavy beer drinkers or large-volume retailers). What type of sampling might be best to use with such a subset? Why?
Answer:
1122
Explanation:
Stratified Sampling is the type of sampling might be best to use with such a subset.
What is Stratified Sampling?In stratified sampling, respondents are divided into groupings known as strata based on shared traits. A different probability sampling technique is used to randomly sample each subgroup once it has been divided.
When a population has a variety of subgroups, stratified sampling is useful to ensure that every group is represented in the sample. Mere random sample and systematic sampling might not be able to fully represent all of these groupings, especially the relatively uncommon ones.
However, proportional stratified random sampling, where a population is divided into strata and a random sample is subsequently drawn from each in proportion to its size, is arguably the most prevalent variety. For instance, if the population as a whole has 60% females and 40% males.
Thus, Stratified Sampling.
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Sarbanes-Oxley applies to a.publicly held companies b.privately held businesses c.not-for-profit organizations d.All of these choices are correct.
Answer: A
Publicly held companies
Explanation:
The Sarbanes Oxley act of 2002 was established against the back drop of corporate frauds in publicly quoted companies in the United States. It goal was to make corporate disclosure more accurate by means of more accurate financials.
Genent Industries, Inc. (GII), developed standard costs for direct material and direct labor. In 2017, GII estimated the following standard costs for one of their major products, the 30−gallon heavy−duty plastic container. Budgeted quantity Budgeted price Direct materials 0.3 pounds $20 per pound Direct labor 0.7 hours $20 per hour During July, GII produced and sold 4,000 containers using 1,500 pounds of direct materials at an average cost per pound of $17 and 2,875 direct manufacturing labor hours at an average wage of $20.50 per hour. July's direct material flexible−budget variance is ________.
Answer:
July's direct material flexible−budget variance is $ 1500.unfav
Explanation:
Genent Industries, Inc. (GII),
Budgeted quantity Budgeted price
Direct materials 0.3 pounds $20 per pound
Direct labor 0.7 hours $20 per hour
Actual Price for 15000 pounds and 2,875 DLH
Direct Materials $17 per pound
Direct manufacturing labor hours wages $20.50 per hour.
July's direct material flexible−budget variance is $ 1500. unfav
Budgeted Cost for 4000 containers -Actual Cost for 4000 containers
= $ 24000- $ 25500 = $ 1500
Since the actual cost is greater it is unfavorable
Flexible Budget Variance is obtained by subtracting actual costs from flexible budget costs at a given volume.
1 container requires 0.3 pounds
4000 containers require 0.3 * 4000= 1200 pounds
But actually 1500 pounds were used .
Now costs
Budgeted Costs for 1200 pounds is = 20 *1200= $24000
Actual Costs for 1500 pounds is = 17* 1500 = $ 25 500
You are considering two independent projects. Project A has an initial cost of $125,000 and cash inflows of $46,000, $79,000, and $51,000 for Years 1 to 3, respectively. Project B costs $135,000 with expected cash inflows for Years 1 to 3 of $50,000, $30,000, and $100,000, respectively. The required return for both projects is 16 percent. Based on IRR, you should:
Answer :
Choose Project A. Because it has a positive Net Present Value.
Explanation :
Find the Net Present of the two project. Then choose the Project with the highest or positive Net Present Value.
Calculation of NPV of Project A using a Financial Calculator :
Project A:
($125,000) CFj
$46,000 Cfj
$79,000 Cfj
$51,000 Cfj
i/yr 16.00 %
Shift NPV $6,038.58
Calculation of NPV of Project B using a Financial Calculator :
Project A:
($135,000) CFj
$50,000 Cfj
$30,000 Cfj
$100,000 Cfj
i/yr 16.00 %
Shift NPV -$5,535.90
Conclusion :
Choose Project A. Because it has a positive Net Present Value.
If you are spending more than you make you have a ___________:
Tracker
Statistic
Overflow
Deficit
Suppose Stark Ltd. just issued a dividend of $2.57 per share on its common stock. The company paid dividends of $2.10, $2.31, $2.38, and $2.49 per share in the last four years. If the stock currently sells for $60.
Required:
a. What is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends?
b. What if you use the geometric average growth rate? (Do not round intermediate calculations.
Answer:
arithmetic average growth rate = (10% + 3.03% + 4.62% + 3.21%) / 4 = 5.22%
we need to find the required rate or return (RRR) in the following formula:
stock price = expected dividend / (RRR - growth rate)
expected dividend = $2.57 x 1.0522 = $2.7042stock price = $60growth rate = 0.0522605 = 2.7042 / (RRR - 0.0522)
RRR - 0.0522 = 2.7042 / 60 = 0.045
RRR = 0.045 + 0.0522 = 0.0973 = 9.73%
geometric average growth rate = [(1.10 x 1.0303 x 1.0462 x 1.0321)¹/⁴] - 1 = 0.05178 = 5.18%
again we need to find the required rate or return (RRR) in the following formula:
stock price = expected dividend / (RRR - growth rate)
expected dividend = $2.57 x 1.0518 = $2.703126stock price = $60growth rate = 0.051860 = 2.703126 / (RRR - 0.0518)
RRR - 0.0518 = 2.703126 / 60 = 0.0450521
RRR = 0.0968521 = 9.69%
A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for 15 years at 5 1/2% or for 30 years at 6 1/2%. To the nearest dollar, what is the difference between the monthly payments for these two loans?
Answer:
Difference in monthly payment=$407.0339
Explanation:
Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.
The monthly installment is computed as follows:
Monthly installment= Loan amount/annuity factor
Loan amount; =220,000
Annuity factor = (1 - (1+r)^(-n))/r
r -monthly rate of interest, n- number of months
First option
monthly interest rate = 5.5% =0.458 %, n- 15×12
Annuity factor= (1-(1+0.055)^(-180 )/0.055 =122.38
Monthly repayment = 220,000/122.386 = 1797.58
Second option
r- 6.5%/12 = 0.542 % n = 15×12 = 180
Annuity factor = ( 1- (1+0.00542)^(-360))/0.005 42= 158.21
Monthly installment = 220,000/1390.549 = 1390.54
Difference in monthly payment = 1,797.583 - 1390.54 = 407.0339
Difference in monthly payment=407.0339
Sales revenue $350,000 Accounts receivable $280,000 Ending inventory $230,000 Cost of goods sold $180,000 Sales returns $50,000 Sales discount $20,000 What is the gross profit?
Answer:
$100,000
Explanation:
The computation of gross profit is shown below:-
Gross profit = (Sales revenue - Sales return - Sales discount) - Cost of goods sold
= ($350,000 - $50,000 - $20,000) - $180,000
= $280,000 - $180,000
= $100,000
Therefore we simply applied the above formula for determining the gross profit
Solt Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Finished Goods Bal. 1/1 38,000 Credits ? Debits ? Bal. 12/31 50,000 The Cost of Goods Manufactured for the year was $415,000.The unadjusted Cost of Goods Sold for the year was:
Answer:
The unadjusted Cost of Goods Sold for the year was: $403,000
Explanation:
Calculation of Cost of Goods Sold
Opening Finished Goods Inventory $38,000
Add Cost of Goods Manufactured for the year $415,000
Less Ending Finished Goods Inventory ($50,000)
Cost of Goods Sold $403,000
Montel Company’s July sales budget calls for sales of $630,000. The store expects to begin July with $63,000 of inventory and to end the month with $37,000 of inventory. Gross margin is typically 20% of sales. Determine the budgeted cost of merchandise purchases for July.
Answer:
Budgeted cost of merchandise purchases =$499,000
Explanation:
The expected units of a product that a business estimates to purchase given its sales budget and inventory is known as the purchases budget.
The purchases budget can bed determined by adjusting the sales budget for closing and opening inventories.
Purchases budget = Sales budget +closing inventory - opening inventory
Note that the sales was given in selling price terms while the inventories in cost terms, hence there is a need to work out the cost of the sales using the 20% margin
Cost of the sales = 100/120× 630,000 =$ 525000
Opening inventory =63,000
Closing inventory = 37,000
Budgeted cost of merchandise purchases:
= 525000 + 37,000 - 63,000= $499,000
Budgeted cost of merchandise purchases =$499,000
Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 20%. The Federal Reserve buys a government bond worth $1,500,000 from Manuel, a customer of First Main Street Bank. He deposits the money into his checking account at First Main Street Bank.
Complete the following table to reflect any changes in First Main Street Bank's T-account.
Assets Liabilities
Reserves/deposits/net work/loan Reserves/deposits/net work/loans
Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 20%.
Hint: If the change is negative, be sure to enter the value as negative number.
Amount Deposited Change in Excess Reserves Change in Required Reserves
(Dollars) (Dollars) (Dollars)
Now, suppose First Main Street Bank loans out all of its new excess reserves to Latasha, who immediately uses the funds to write a check to Jake. Jake deposits the funds immediately into his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Nick, who writes a check to Rosa, who deposits the money into her account at Third Fidelity Bank. Third Fidelity lends out all of its new excess reserves to Alyssa as well.
Fill in the following table to show the effect of this ongoing chain of events at each bank.
Increase in Deposits Increase in Required Increase in
Reserves Loans
(Dollars) (Dollars) (Dollars)
First Main Street Bank
Second Republic Bank
Third Fidelity Bank
Answer:
hmmmmmmmmmmmmm
Explanation:
Suppose you inherited $275,000 and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years
Answer:
$28,533.5
Explanation:
Principal value (PV) = $275,000
Time = 20 years
Rate = 8.25%
Present Value = P ((1-(1+R)^-n) / r)
275,000 = P ((1- (1 + 0.0825)^-20) /.0825)
275,000 x .0825 = P (1-(1/1.0825)^20)
22687.5 = P ((1.0825^20 - 1) / (1.0825 ^20))
22687.50 = P (4.8816 - 1 / 4.8816)
22687.5 = P (3.886 / 4.8816)
22687.5 = p(0.7951)
P = 22687.5 / 0.7951
P = $28533.5
Pearls, Pearls, Pearls! manufactures and sells jewelry. The total variable cost of goods sold this month is $72,490. Variable selling and administrative cost is $22 per unit sold. If 350 units are produced and 314 units are sold this month, the total variable cost reported on the income statementforthe month is $:___________
Answer:
Total variable cost= $71,940.54
Explanation:
Giving the following information:
The total variable cost of goods sold this month is $72,490.
Variable selling and administrative cost is $22 per unit sold.
350 units are produced and 314 units are sold this month.
First, we need to calculate the unitary variable cost per unit:
Unitary production cost= 72,490/350= $207.11
Now, we can calculate the total variable cost:
Total variable cost= (207.11 + 22)*314= $71,940.54
According to Twitter’s amended S-1 filed November 4, 2013, what were the estimated amounts of net proceeds to be received by the company after the offering, excluding and including the over-allotment option?
Answer:
$1.62billion ; $1.82billion
Explanation:
According to amended S-1 filed November 4, 2013, the estimated amounts of net proceeds to be received by the company after the offering, excluding and including the over-allotment option is $1.62billion or approximately $1.86billion if the underwriters fully exercise their option to purchase additional stock. The standard initial public offering price is assumed to be $24 per share.
goes on to explain that the main reason for this offering is to optimize their financial flexibility and capitalization, as well as to make their common stock available to the public. Net proceeds from the offering would also be fully utilized in facilitating their working expenses as well as funding business and taxation expenses.
Ringmeup Inc. had net income of $126,500 for the year ended December 31, 2019. At the beginning of the year, 45,000 shares of common stock were outstanding. On May 1, an additional 18,000 shares were issued. On December 1, the company purchased 4,300 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ringmeup paid the annual dividend on the 7,000 shares of 4.25%, $100 par value preferred stock that were outstanding the entire year.
Calculate basic earnings per share of common stock for the year ended December 31, 2019.
Answer:
Earning per share = $3.18
Explanation:
In order to calculate basic earning per share firstly, we need to calculate the weighted average number of share outstanding
Shares months (months x shares)
1 January to 30 May 45,000 4 $180,000
1 May to 30 November 18,000 7 $126,000
1 Dec to 31 December 58,700 1 $58,700
Total 12 $364,700
Weighted average = $364,700/12
Weighted average = 30,391
Dividends required on preferred stock = 7000 x 4.25% x $100
Dividends required on preferred stock = $29,750
Net income available for shareholders = Net Income - dividend
Net income available for shareholders = $126,500 - $29,750
Net income available for shareholders = $96,750
Earning per share = Net Income/ no of shares
Earning per share = $96,750/30,391
Earning per share = $3.18
The Mixing Department of Complete Foods had 62,000 units to account for in October. Of the 62,000 units, 38,000 units were completed and transferred to the nest department, and 24,000 units were 20% complete. All of the materials are added at the beginning of the process. Conversion costs arc added evenly throughout the mixing process and the company uses the weighted-average method.
Compute the total equivalent units of production for direct materials and conversion costs for October.
Answer:
The total equivalent units of production are as follows:
For direct materials = 62,000 units
For conversion costs = 42,000 units
Explanation:
These can be computed by preparing statements of equivalent units as follows:
Statement of Equivalent Units (EU) (Weighted average)
For October
For Materials
Particulars Units (a) Complete (%) (b) EU (c = a * b)
Transferred 38,000 100% 38,000
Ending WIP 24,000 100% 24,000
Total 62,000 62,000
Statement of Equivalent Units (EU) (Weighted average)
For October
For Conversion Costs
Particulars Units (a) Complete (%) (b) EU (c = a * b)
Transferred 38,000 100% 38,000
Ending WIP 24,000 20% 4,800
Total 62,000 42,000
Conclusion
The total equivalent units of production are as follows:
For direct materials = 62,000 units
For conversion costs = 42,000 units
Carver Packing Company reports total contribution margin of $80,200 an pretax net income of $40,100 for the current month. In the next month, the company expects sales volume to increase by 10%. The degree of operating leverage and the expected percent change in income, respectively, are:
Answer:
• Degree of operating leverage = $2
• Expected Percent change in income = 20%
Explanation:
Details provided from the question includes ;
Total contribution margin = $80,200
Pretax net income = $40,100
Expected increase in sales value = 10%
Therefore;
Degree of operating leverage
= Contribution margin ÷ Net operating income
= $80,200 ÷ $40,100
= $2
Percent change income
= Percentage increase in sales × Degree of operating leverage
= 10% × 2
= 20%