Answer:
3. Sales Price 435 per unit
4. Variable cost $ 348 per unit
5. Contribution margin $ 87 per unit.
6. Contribution Format Income Statement
Explanation:
Todrick Company
Contribution Format Income Statement.
Sales $435,000
Beginning merchandise inventory $29,000
Purchases $290,000
Ending merchandise inventory $14,500
Direct Materials Used 304,500
Variable selling expense $ 21,750
Variable administrative expense $ ? 21750
Contribution margin $87,000
Fixed selling expense $ ? 43,500
Fixed administrative expense $17,400
Net operating income $26,100
Todrick Company
Traditional Format Income Statement.
Sales $435,000
Beginning merchandise inventory $29,000
Purchases $290,000
Ending merchandise inventory $14,500
Direct Materials Used 304,500
Gross Profit $ 130,500
Less Selling And Admin. Expenses.
Variable selling expense $ 21,750
Fixed selling expense $ ? 43,500
Variable administrative expense $ ? 21750
Fixed administrative expense $17,400
Net operating income $26,100
3. Sales Price Per unit = Total Sales/ Total Sales Units
= $435,000/1000= $ 435 per unit
4. Variable cost per unit= Total Variable Costs/ No of Units=
= 304,500 + 43,500/1000
= 348,000/1000= $ 348 per unit
5. Contribution margin per unit= Contribution Margin / No of Unit
= $87,000/1000= $ 87 per unit.
6. Contribution Format Income Statement is more useful as it changes with the number of units varied. Traditional may not show the change that accurately as fixed expenses do not change with the change in the number of units.And in contribution margin income statement the variable expenses are accounted for separately.
The following information for 2019 relates to Sparrow Corporation, a calendar year, accrual method taxpayer:
Net income per books (after-tax) $205,050
Federal income tax expense per books 55,650
Tax-exempt interest income 4,500
MACRS depreciation in excess of straight-line
depreciation used for financial statement purposes
7,200
Excess of capital losses over capital gains 9,400
Nondeductible meals and entertainment 5,500
Interest on loan to purchase tax-exempt bonds 1,100
Regarding items that would be added back on the M–1 schedule, label either "Yes" (it would be added back to net income per books) or "No" (it would not be).
• Federal income tax expense per books
• Excess of capital loss over capital gains
• Tax-exempt interest income
• Excess of MACRS over book depreciation
• Interest on loan to purchase tax-exempt bonds
• Nondeductible meals and entertainment
Answer:
Given that Sparrow corporation a calendar year, accrual method taxpayer has the following information:
Net income per books (after-tax): $205,050
Federal income tax expense per books: 55,650
Tax-exempt interest income: 4,500
MACRS depreciation in excess of straight-line depreciation used for financial statement purposes: 7,200
Excess of capital losses over capital gains: 9,400
Nondeductible meals and entertainment: 5,500
Interest on loan to purchase tax-exempt bonds: 1,100
Regarding items that would be added back on the M–1 schedule, we have:
• Federal income tax expense per books: Yes
• Excess of capital loss over capital gains: Yes
• Tax-exempt interest income: No
• Excess of MACRS over book depreciation: No
• Interest on loan to purchase tax-exempt bonds: Yes
• Nondeductible meals and entertainment: Yes
Complete the following statements regarding gains and losses.
Gain is the amount of the ___________ gain that is included in the taxpayer's gross income. A __________ loss, on the other hand, is the amount of a ___________ loss that is deductible for tax purposes. A loss from the sale, exchange, or condemnation of personal use assets is generally _______for tax purposes. Any gain from the sale or other disposition of personal use assets is generally __________.
Answer:
1. Recognized
2. Realized.
3. Recognized.
4. Realized.
5. Non-deductible.
6. Taxable.
Explanation:
Recognized gain is the amount of the realized gain that is included in the taxpayer's gross income. A recognized loss, on the other hand, is the amount of a realized loss that is deductible for tax purposes. A loss from the sale, exchange, or condemnation of personal use assets is generally non-deductible for tax purposes. Any gain from the sale or other disposition of personal use assets is generally taxable.
The gain an taxpayer (individual or business entity) realizes from the disposition or sales of an asset is known as the realized gain.
Also, you should note that when an asset is sold for an amount which is greater than its purchase or cost price (original amount paid for acquisition), it is known as recognized gain. For instance, if you purchased a share of stocks at $100 and sold it for $150, you have earned a recognized gain of $50.
On the other hand, when an asset is sold for an amount which is less than its purchase or cost price (original amount paid for acquisition), it is known as recognized loss.
However, if the realized gain or loss is not recognized upon the sale of an asset or property it is generally known as a non-recognition of gain or loss. Some examples of non-recognition of gain are installment sales, involuntary conversions etc.
you currently have $5600. First united bank will pay you an annual interest rate of 9.1, while second national bank will pay you an annual interest rate of 10.2. How many fewer years must you wait for your account value to grow to $15,700 at second national bank?
Answer:
1.22 years
Explanation:
The formula for calculating number of years:
FV / PV = (1 + r)^ n
FV = Future value
P = Present value
R = interest rate
N = number of years
at the first bank
$15700 / $5600 = (1.091)^n
2.80 = (1.091)^n
n = In 2.8 / In 1.091
to find n, take the IN of both sides
1.029619 / 0.08709 = 11.82 years
at the second bank
$15700 / $5600 = (1.091)^n
2.80 = (1.102)^n
n = n = In 2.8 / In 1.102
= 10.6 years
11.82 - 10.6 = 1.22 years
Your task is to study and examine precisely what the project you are involved with is trying to accomplish, in order to set definable goals and boundaries. What aspect of the project are you working on
Answer:
Scope management
Explanation:
In Scope management, we actually identify what is our desired output, outcomes and benefits that will be drawn by execution of the project. Furthermore, Scope management helps in defining goals and laying out plans to achieve that goal within three constraints which is time, quality and cost.
As I am involved in identifying future desired accomplishments which is part of defining goals by identifying outcomes, outputs and benefits drawn from the execution of the project.
Corporate finance (Financial management) deals with main three types of managerial decision making problems in the context of business except:
Answer:
staffing decision making problems
Explanation:
In simple words, corporate finance relates to the branch of finance that studies how and when an organisation and individuals should incest their money in the market.
In this subject matter. the analyst takes into consideration various market factors such as interest rates, GDP etc. and by applying various tools and methods make a decision.
It particularly deals with investment decisions and asset management problems and not staffing decisions.
The following information describes a product expected to be produced and sold by Hadley Company:selling price.......................$80 per unit
variable costs....................$32 per unit
Toatal fixed costs...............$ 630,000
Required:
(a) calculate the contribution margin in units.
(b) calculate the break-even point in units and in dollar sales.
(c) What dollar amount of sales would be necessary to achieve an income of $120,000?
Answer:
a. Contribution margin per unit is $48 per unit
b. Break-even point in units is 13,125 units; and Break-even point in dollar sales is $1,050,000
c. Dollar amount of sales to achieve $120,000 income is $1,250,000.
Explanation:
These can be determined as follows:
(a) calculate the contribution margin in units.
Contribution margin in units is the selling price per unit minus the variable cost per unit that produces incremental earning for each unit sold. This can be calculated as follows:
Contribution margin per unit = Selling price per unit - Variable cost per unit = $80 - $32 = $48 per unit
b) Calculate the break-even point in units and in dollar sales.
Break even point is the point at which there is no net loss or gain, i.e. where total revenue is equal to to cost. This can be calculated both in units and dollar sales as follows:
Break-even point in units = Total fixed costs / Contribution margin in units = $630,000 / $48 = 13,125 units
Break-even point in dollar sales = Selling price * Break-even point in units = $80 * 13,125 = $1,050,000
(c) What dollar amount of sales would be necessary to achieve an income of $120,000?
To calculate this, we first calculate the contribution margin ratio as follows:
Contribution margin ratio = Contribution margin in units / Selling price = $48 / $80 = 0.60
Therefore, we have:
Dollar amount of sales to achieve $120,000 income = (Targeted income + Total Fixed costs) / Contribution margin ratio = ($120,000 + $630,000) / 0.60 = $1,250,000.
a. The contribution margin in units is $48 per unit.
b. The break-even point in units and in dollar sales is $1,050,000.
c. The dollar amount of sales would be necessary to achieve an income of $120,000 is $1,250,000.
a. Contribution margin per unit
Contribution margin per unit = Selling price per unit - Variable cost per unit Contribution margin per unit= $80 - $32
Contribution margin per unit= $48 per unit
b. Break-even point in units and in dollar sales:
Break-even point in units = Total fixed costs / Contribution margin in units
Break-even point in units= $630,000 / $48
Break-even point in units = 13,125 units
Break-even point in dollar = Selling price × Break-even point in units
Break-even point in dollar= $80×13,125
Break-even point in dollar= $1,050,000
c. Dollar amount of sales:
Contribution margin ratio = Contribution margin in units / Selling price
Contribution margin ratio = $48 / $80
Contribution margin ratio = 0.60
Dollar amount of sales = (Targeted income + Total Fixed costs) / Contribution margin ratio
Dollar amount of sales = ($120,000 + $630,000) / 0.60
Dollar amount of sales=$750,000/0.60
Dollar amount of sales = $1,250,000
Inconclusion the contribution margin in units is $48 per unit, the break-even point in units and in dollar sales is $1,050,000 and the dollar amount of sales would be necessary to achieve an income of $120,000 is $1,250,000.
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The limited liability company form of organization:__________.
a) is a poor choice for new businesses.
b) can offer stock incentives to employees.
c) affords less protection from liability than partnerships.
d) avoids the double taxation of C corporations.
Answer:
Avoids the double taxation of C corporations
Explanation:
Double taxation occurs when an organization is made to pay their income taxes two times. This means that the tax is paid both on a personal level and on a corporate level.
This type of taxation puts a strain on the amount of profit that is realised as the corporation is mandated to pay income tax twice after which the remaining amount of profit is distributed to its partners.
Limited liability company do not make such double taxation payment as this type of business is arranged as a flow-through-organisation, this means that the profits comes straight to the shareholders.
This does not mean that they are exempted from tax payment. In a limited liability company taxes are paid only on a personal level.
A manufacturer of breakfast cereals has the opportunity to purchase barley at $3.00 a bushel for 10,000 bushels, if it also buys 5,000 bushels of wheat at $16.00 per bushel. However, the manufacturer does not use any barley in its products, and currently needs 20,000 bushels of wheat. If the current market price of barley is $3.80 per bushel and that of wheat is $15.80 per bushel, should this opportunity be taken, and why? A. Because the value of the opportunity is positive, the opportunity should be taken. B. Because the company has no need of barley, the opportunity should not be taken. C. Because the opportunity does not meet the company's need for wheat, the opportunity should not be taken. D. Because the value of the opportunity is negative, the opportunity should not be taken.
Answer:
A. Because the value of the opportunity is positive, the opportunity should be taken.
Explanation:
As we can see in the question that there are two cases
First one is when it is purchased on market price i.e
= 20,000 bushels × $15.80
= $316,000
The second one is of opportunity
The current need is of 20,000 wheat bushels but he buys 40,000 barley bushels
So it would be
= $16 × 20,000 wheat bushels + $3 × 40,000 barley bushels
= $440,000
Now he sold at market price
= 40,000 × $3.80
= $152,000
So the net purchased cost is
= $440,000 - $152,000
= $288,000
As we compare both costs so the wheat of bushels is $28,000 less in case when he takes the opportunity
Therefore the opportunity should be accepted
Wildhorse Company established a petty cash fund on May 1, cashing a check for $125. The company reimbursed the fund on June 1 and July 1 with the following results. June 1: Cash in fund $3.55. Receipts: delivery expense $27.45, postage expense $36.25, and miscellaneous expense $55.60. July 1: Cash in fund $4.15. Receipts: delivery expense $18.90, entertainment expense $52.25, and miscellaneous expense $49.70. On July 10, Wildhorse increased the fund from $125 to $155. Prepare journal entries for Wildhorse Company.
Answer:
journal entries for Wildhorse Company are given below
Explanation:
Wildhorse Company established a petty cash fund on May 1,
DEBIT CREDIT
Petty cash $125
Cash $125
The company reimbursed the fund on June 1
DEBIT CREDIT
delivery expense $27.45
postage expense $36.25
miscellaneous expense $55.60
Cash under/over $2.15
Cash ($125-$3.55) $121.45
The company reimbursed the fund on July 1
DEBIT CREDIT
delivery expense $18.90
entertainment expense $52.25
miscellaneous expense $49.70
Cash ($125 - 4.15) $120.85
Wildhorse increased the fund from $125 to $155
DEBIT CREDIT
Petty cash $30
Cash $30
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 5 workers, who together produced an average of 100 carts per hour. Workers receive $20 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by 5 carts per hour.
Required:
a. Compute the multifactor productivity(MFP) (labor plus equipment) under the Prior to buying the new equipment. (Round to 4 decimal places)
b. Compute the % growth in productivity between the Prior and after buying the new equipment. (Round to 2 decimal places)
Answer:
a. The multifactor productivity(MFP)Prior to buying the new equipment=0.71 carts
b. The % growth in productivity between the Prior and after buying the new equipment=12.81%
Explanation:
a. In order to calculate the multifactor productivity(MFP) (labor plus equipment) under the Prior to buying the new equipment we would have to make the following calculation:
multifactor productivity(MFP)Prior to buying the new equipment=Carts produced / [(Number of workers x Worker wage) + Equipment cost)
According to given data we have the following:
Carts produced=100 per hour
(Number of workers= 5
Worker wage=$20
Equipment cost=$40
Therefore, multifactor productivity(MFP)Prior to buying the new equipment=100 / [(5 x $20) + $40
multifactor productivity(MFP)Prior to buying the new equipment=0.71 carts
b. In order to calculate the % growth in productivity between the Prior and after buying the new equipment we would have to make the following calculation:
% growth in productivity between the Prior and after buying the new equipment=(New productivity - Old productivity) / Old productivity] x 100
multifactor productivity(MFP after buying the new equipment=105 / [(4 x $20) + $51
multifactor productivity(MFP after buying the new equipment=0.801
Therefore, % growth in productivity between the Prior and after buying the new equipment=0.801 - 0.71) / 0.71] x 100
% growth in productivity between the Prior and after buying the new equipment=12.81%
Assuming that ATCHULO Company Ltd is committed to the current design, how would you improve it?
Answer:
Atchulo company should focus on its income centers rather than the whole organization. The company has limited itself to only domestic shipments. It has not considered the international shipment where profit margin can be high and company can benefit from expanding its operations. Also all the cost related to the travelling of shipment to and from the hub is charged to the hub and terminals does not bears the cost.
Explanation:
The revenue for the different terminals and hub is divided so the cost should also be allocated to the respective activities. If the hub is set as cost bearing center then there will no profit to the hub and terminals cost will be reduced and they will enjoy high profit.
Boxwood Company sells blankets for $30 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 03 Purchase 6 $14 10 Sale 4 17 Purchase 12 $16 20 Sale 4 23 Sale 3 30 Purchase 12 $18 Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the LIFO inventory cost method.
Answer:
The ending inventory for the month of May using the LIFO inventory cost method is $324.
Explanation:
LIFO
LIFO method assumes that the last goods purchased are the first ones to be issued to the final customer.
This means valuation of inventory will use the value of the earliest goods purchased.
Ending Inventory : 2 units × $14 = $28
5 units × $16 = $80
12 units × $18 = $216
Total = $324
Conclusion :
The ending inventory for the month of May using the LIFO inventory cost method is $324.
by how many days does the discontinuance of a group insurance policy reduce the time limit for providing notice of claim or proof of loss
Answer:
0 days.
Explanation:
A group life insurance policy can be defined as a single contract plan that covers a group of people by providing life insurance coverage. An employer may opt for a group life insurance policy which would cover the lives of his or her employees. Therefore, in the event that an employee died, the group life insurance policy would act as a monetary security by providing financial support or aid to the family members of the deceased employee.
The discontinuance of a group insurance policy reduce the time limit for providing notice of claim or proof of loss by 0 days. The date for notice of claim or proof of loss is perpetual and such the beneficiaries of these policies are allowed to provide or present evidence at any time.
A notice of discontinuance of an insurance company should contain therein a date when the group policy plan will discontinue and as a result the insurer wouldn't be liable for claims for losses incurred after the date of discontinuance.
The company expects dividends to growth at 20% per year for the next 12 years and eventually leveling off at 9% into perpetuity. DJI just paid a dividend of $1.95. If the required return on the stock is 12%, what is the current share price of the stock
Answer:
Price of the stock today = $199.83
Explanation:
The current price of the stock can be computed using the two stage dividend growth model of the DDM approach. The DDM or dividend discount model values a stock based on the present value of the expected future dividends from the stock.
The formula for the price of the stock today using the two stage growth model is attached.
Price of the stock today = 1.95 * (1+0.2) / (1+0.12) + 1.95 * (1+0.2)^2 / (1+0.12)^2
+ 1.95 * (1+0.2)^3 / (1+0.12)^3 + ... + 1.95 * (1+0.2)^12 / (1+0.12)^12 +
[ (1.95 * (1+0.2)^12 * (1+0.09)) / (0.12 - 0.09) ] / (1+0.12)^12
Price of the stock today = $199.83
When unemployment is high, government policymakers might decide to do which of the following?
a. Decrease the amount of funds in the economy available for loans
b. Decrease government spending on goods and services
c. Increase government spending on goods and services
d. Raise taxes
Answer:
Option C is correct.
Explanation:
The option is C, “Increase government spending on goods and services” is correct because the spending by the government will create new employment opportunities. Therefore, this will decrease unemployment. However, if the government decreases the loan funds in the economy, decreases the spending on goods and services, and rises the taxes then it will raise unemployment in the economy.
In the case when the unemoloyment is high, the government policymakers should increase the government spending on the goods and services.
The following information should be considered:
The spending by the government developed the new employment opportunities.Due to this, the unemployment should decreased.In the case when the government reduced the loan funds so it reduced the spending on goods & services.Learn more: brainly.com/question/17429689
Winkle Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 5,000 unites, 90% complete with respect to conversion costs. Ending work in process inventory consisted of 2,000 units, 60% complete with respect to conversion costs. If 10,000 units were transferred to the next processing center during the period, how many would the equivalent units for conversion costs be?
a. 10,000 units
b. 12,200 units
c. 12,000 units
d. 6,700 units
Answer:
d. 6,700 units
Explanation:
The computation of the equivalent units for conversion cost by using the FIFO method is shown below:
= Beginning inventory units × remaining percentage + units started and completed + ending inventory units × completion percentage
= 5,000 × 10% + (10,000 - 5,000) + 2,000 × 60%
= 500 + 5,000 + 1,200
= 6,700 units
We simply applied the above formula
PLEASE HELP!
which industrial revolution-era invention greatly increased the circulation of newspapers?
-cell phones
-computers
-huge printing press
-television
Answer: televisión
Explanation:
Answer:
huge printing press
Explanation:
"Industrial revolution-era" lets out television, computers, and cell-phones--all of which became generally available after 1950.
The "huge printing press" made large circulation of newspapers possible.
When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called
Answer:
Compound interest
Explanation:
Compound interest is a method of measuring interest by which interest is applied to the principal amount over time. You not only earn interest on the principal amount but also collect interest on your interest.
This tends to happen because you save your interest, rather than withdraw it
Hence, the compound interest is the correct answer
For financial accounting purposes, what is the total amount of product costs incurred to make 24,500 units
Answer:
The product cost for 24,500 units is $497,350.
Explanation:
The reason is that the the product cost always includes all the variable production cost and specific fixed production cost. In this scenario, direct material cost, direct labor cost, variable manufacturing overhead cost are variable production cost whereas the fixed manufacturing cost is specific fixed production cost which will form part of product cost. The remainder of the cost left is period cost.
Direct materials (24,500 * $7.7 per unit) $188,650
Direct labor (24,500 * $4.7 per unit) $115,150
Variable manufacturing overhead (24,500 * $2.2 per unit) $53,900
Fixed manufacturing overhead (24,500 * $5.7 per unit) $139,650
Total product costs $497,350
Regarding the NASAA interpretation on splitting of commissions, registered agents may split commissions with:
Answer:
Explanation:
According to the North American Securities Administrators Association in regards to splitting commission, it is only permitted between individuals who are registered with the NASAA and currently work at the same broker-dealer. If only one individual is registered they cannot split commissions with a non-registered individual, the same goes for individuals working in different broker-dealers. Doing so is illegal and will result in various consequences.
By how much does the residual elasticity of demand facing a firm increase as the number of firms increases by one firm?
Answer:
Explanation:
By how much does the residual elasticity of demand facing a firm increase, as the number of firms in the market increases by one?
The residual elasticity of demand facing a firm, is the portion of market demand which is not met or supplied by other firms in the market. In other words, this is the demand curve of the firm, given the presence of other firms in the market.
Given that
- all the firms in this market sell identical products,
- have identical marginal costs,
- and produce the same amount of output;
We model the residual elasticity of demand for this firm as:
EDr = EDm - EDa
Where:
EDr = the residual elasticity of demand for this firm
EDm = market elasticity of demand
EDa = total elasticity of demand facing ALL other firms in the market.
If EDa = 4, and a new firm enters the market, it will become 5
Elasticity of demand is the degree of responsiveness of demand, to change in price of a commodity.
g Ryngard Corp's sales last year were $24,000, and its total assets were $16,000. What was its total assets turnover ratio (TATO).
Answer:
1.50
Explanation:
TATO = (net sales)/(total assets)
= (24000/16000) = 1.50
The total asset turnover ratio (TATO) for Ryngard Corp was 1.50 last year.
Organizational development would be most useful to this organization vin terms of _______ creativity, revitalizing organizations, reactive change, innovation, adapting to mergers
Answer:
great was the thing that i had noticed already have to do with wat u r doing it hardly a lot 5555ga and
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
Cash Sales Credit Sales
January $80,000 $180,000
February $85,000 $200,000
March $48,000 $160,000
April $43,000 $128,000
May $53,000 $230,000
June $110,000 $220,000
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
Collections on sales:
50% in month of sale
40% in month following sale
10% in second month following sale
The accounts receivable balance on January 1 of the current year was $75,000, of which $47,000 represents uncollected December sales and $28,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be:___________
Answer:
Total cash collection= $235,600
Explanation:
Giving the following information:
Cash Sales Credit Sales
January $80,000 $180,000
Credit Sales
December= 47,000*2= $94,000
Collections on sales:
50% in month of sale
40% in month following sale
10% in second month following sale
The accounts receivable balance on January 1 of the current year was $75,000, of which $47,000 represents uncollected December sales and $28,000 represents uncollected November sales.
Cash collection January:
Sales on cash Jnauary= 80,000
Sales on account January= 180,000*0.5= 90,000
Sales on account December= 94,000*0.4= 37,600
Sales on account November= 28,000
Total cash collection= $235,600
A budget is termed as the estimation of the revenue and the expenses as well with the specified period of time. The budgets can be made for and by the people as per the individuals and the group of the persons.
Total cash collection= $235,600
The following information is given below:
Cash Sales Credit Sales
January $80,000 $180,000
Credit Sales
December= [tex]47,000\times2[/tex]= $94,000
Collections on sales:
50% in the month of sale
40% in the month following sale
10% in the second month following sale
The accounts receivable balance on January 1 of the current year was $75,000, of which $47,000 represents uncollected December sales and $28,000 represents uncollected November sales.
Cash collection January:
Sales on cash January= 80,000
Sales on account January= [tex]180,000\times0.5= 90,000[/tex]
Sales on account December= [tex]94,000\times0.4= 37,600[/tex]
Sales on account November= 28,000
Total cash collection= $235,600
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You are going to deposit $3,100 in an account that pays .57 percent interest per quarter. How much will you have in 7 years
Answer:
The answer is $3,634.78
Explanation:
There are 4 quarters in a year.
Number of periods (N) = 28 periods (4 x 7) years
Interest rate per quarter (I/Y) = 0.57percent.
Present Value (PV) =$3,100
Using a Financial calculator:
N= 28; I/Y = 0.5; PV= -3,100; FV= ?
= $3,634.78
The $3,100 that will be deposited today will have a fave value of$3,634.78 in 7 years.
True or false: The main purpose of both financial and managerial accounting is similar in that both aim to provide relevant information to its users.
Answer: True
Explanation:
Even though Financial and Managerial accounting differ in the type of people who use it with Financial being used both internally and externally and Managerial being used internally, the main purpose is to provide relevant information to it's users.
Managerial accounting concerns analyzing and interpreting financial as well as other data so that the management can make informed decisions about their course of action.
Financial Accounting on the other hand provides the public with financial data on a company so that they may know whether to invest. Either way, they are both providing relevant information to users.
Chun Hei is carrying out a marketing research study. Even after seeking all reasonable available secondary data sources, she has not been able to adequately answer the research questions. In such a situation, Chun Hei must collect ________ data. Multiple Choice cohort syndicated derived primary referential
Answer:
Primary data
Explanation:
Since the available secondary data are not sufficient for the marketing research study, Chun Hei must collect primary data.
Primary data unlike secondary data are data that were not in existence beforehand. Such a data can not be found in any journals, books, websites or data sites. To get primary data a researcher has to go into the field and they can collect these data through questionnaires, surveys or interviews. Chun Hei will get the information she needs from first hand sources.
On February 1, a customer's account balance of $2,700 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method? Multiple Choice Debit Bad Debts Expense $2,700; credit Accounts Receivable $2,700. Debit Bad Debts Expense $2,700; credit Allowance for Doubtful Accounts $2,700. Debit Accounts Receivable $2,700; credit Allowance for Doubtful Accounts $2,700. Debit Allowance for Doubtful Accounts $2,700; credit Accounts Receivable $2,700. Debit Allowance for Doubtful Accounts $2,700; credit Bad Debts Expense $2,700.
Answer:
On February 1, a customer's account balance of $2,700 was deemed to be uncollectible.
The entry to be recorded on February 1 to record the write-off assuming the company uses the allowance method is:
Debit Allowance for Doubtful Accounts $2,700; credit Accounts Receivable $2,700.
Explanation:
Using the allowance method, every bad debt entry is first reflected in the Allowance for Doubtful Accounts before it is taken to the bad debt expense account.
The entries above reduce the Accounts Receivable account by the amount of the write-off and reduces the Allowance for Doubtful Accounts by the same amount. Any recovery of written off debt is also treated in the Allowance for Doubtful Accounts and the Accounts Receivable account in revised order. This method is unlike the direct write-off method. With the direct write-off method, the Accounts Receivable is credited with the amount of the write-off and the write-off is expensed in the Bad Debts Expense account directly.
As the income of bus riders increased, the wages of bus drivers increased simultaneously. How does this affect the market for bus rides (inferior good)?
Answer:
The demand curve and supply curve will shift leftwards.
Explanation:
The increase in the income of riders will decrease the number of bus rides because there is an inverse relationship between income and inferior goods. Therefore, the demand curve for bus rides will shift leftwards. Moreover, the increase in wages is an input cost, therefore, the rise in input cost will shift the supply curve leftwards.
If bonds with a face value of $ 206 comma 000are issued at 109,the amount of cash proceeds is ________.
Answer:
The cash proceeds is $224,540
Explanation:
The implication is that the bonds were issued at a premium. A bond issued at a premium is issued above its par value. This means that investors pay more than the face value for investing in the bonds. They are usually compensated with higher interest rates.
Bonds can also be issued at a discount. This happens when the issue price is less than the par value. The par value is the face value or nominal value. Bonds can be issued at a discount when the interest rate is lower than the yield rate.