Answer:
See below
Explanation:
The computation of ending inventory is shown below;
But first we need to determine the average cost per unit.
Average cost per unit
= (476 units × $63 + 718 units × $66 + 365 units × $68) ÷ (476 units + 718 units + 365 units)
= ($29,988 + $47,388 + $24,820) ÷ (1,559 units)
= $102,196 ÷ 1,559
= $65.55
Now, the ending inventory unit
= 1,559 units - 1,195 units
= 364 units
Finally , the ending inventory
= $65.55 × 364 units
= $23,860
R. Sheridan Co. uses special journals and a general journal. The following transactions occurred during May 2020.
May 1 R. Sheridan invested $46,800 cash in the business.
2 Sold merchandise to Lawrie Co. for $6,470 cash. The cost of the merchandise sold was $4,300.
3 Purchased merchandise for $7,450 from J. Moskos using check no. 101.
14 Paid salary to H. Rivera $900 by issuing check no. 102.
16 Sold merchandise on account to K. Stanton for $810, terms n/30. The cost of the merchandise sold was $605.
22 A check of $8,830 is received from M. Mangini in full for invoice 101; no discount given.
Prepare a multiple-column cash receipts journal _______ for May that should be journalized. (Record entries in the order presented in the problem.
Answer:
The journal entries will be recorded as follows
Explanation:
1. DR Cash $46,800
CR Capital $46,800
2. DR Sales $6,470
CR Inventory $4,300
CR Profit $2,170
3. DR Inventory $7,450
CR Bank $7,450
14. DR Salaries Expense $900
CR Bank $900
16. DR Account Receivable $810
CR Inventory $605
CR Profit $205
22. DR Cash $8,830
CR Accounts Receivable $8,830
Tom produces commemorative t-shirts in a competitive market. If Tom decides to decrease his output, this will Group of answer choices increase his revenue, since Tom's competitors will also decrease their output, so that price rises to offset the drop in Tom's output. decrease his revenue, since the price falls as competitors increase their output to make up for his decrease in output. decrease his revenue, since his output has decreased and the price remains the same. increase his revenue, since the output decrease leads to a higher market price.
Answer:
decrease his revenue, since his output has decreased and the price remains the same
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Because Tom is a price taker, his activity is would affect the price for t-shirts, if he reduces his output, price would remain unchanged and as a result, revenue would fall.
12. An invoice for hosiery is dated Aug 22 with terms 1/10, FOB store. The total billed cost of merchandise is $876.90 and shipping charges are $18.60. If the invoice is paid on September 5, how much should be remitted
Answer:
$895.5
Explanation:
Calculation to determine how much should be remitted using this formula
Remitted Amount=Total billed cost of merchandise +Shipping charges
Let plug in the formula
Remitted Amount=$876.90+ $18.60
Remitted Amount=$895.5
Therefore how much should be remitted is $895.5
A(n) ________ is a written agreement in which the owner of a piece of property allows an individual or business to use the property for a specified period of time in exchange for payments.
Answer:
Lease
Explanation:
A lease is a contractual agreement between a lessee and a lessor, where the lessee promises to pay the lessor for the usage of his assets. Here, the assets usually leased are properties, industrial or business equipments, buildings and vehicles and are used for a specified period of time in exchange for payments.
The lessee is the one making use of the assets, while the lessor is the one receiving value for the assets leased. Unlike a rent which payment is made regularly upon its expiration usually monthly, a lease is usually for a specified period of time.
Coronado Consulting leased machinery from Island Inc. on July 1, 2021. The lease was recorded as a finance lease. The present value of the lease payments discounted at 9% was $60 million. Ten annual lease payments of $8 million are due each July 1 beginning July 1, 2021. What amount of interest expense from the lease should Coronado report in its December 31, 2021, income statement
Answer:
the amount of the interest expense is $2,340,000
Explanation:
The computation of the amount of the interest expense is shown below:
= (present value of the lease payments - ten annual lease payments) × rate of interest × given time period ÷ total months
= ($60 million - $8 million) × 9% × 6 months ÷ 12 months
= $2,340,000
hence, the amount of the interest expense is $2,340,000
All stores are similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first and was built at a lower cost than were Stores 2 and 3. This lower cost results in less depreciation expense for Store 1. Store 2 follows a policy of minimizing both costs and sales prices. Store 3 follows a policy of providing extensive customer service and charges slightly higher prices than the other two stores. Top management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that management estimates closing Store 3 would cause sales at Store 1 to increase by $85,000, and sales at Store 2 to increase by $113,000. Closing Store 3 is not expected to cause any change in common fixed costs. Compute the increase or decrease that closing Store 3 should cause in: a. Total monthly sales for Drexel-Hall stores. b. The monthly responsibility margin of Stores 1 and 2. c. The company's monthly income from operations.
The question is incomplete. The complete question is :
Shown below is a segmented income statement for Drexel-Hall during the current month: Drexel-Hal Store 1 Store 2 Store 3 Sales Variable costs Dollars $1,800.000 100% s600,000 100% S600.000 100% S600.000 100 % 1080,000 60 372,000 62 378,000 63 330,00055 Contribution margin Traceable fixed costs: controllable $ 720,000 432,000 40% 24 $228,000 38 % $222,000 37% $270,000 45% 20,000 20 102,000 17 210,000 35 Performance margin Traceable fixed costs: committed S 288,000 16% $108,000 18% $120,000 20% $60,000 66,000 10% 80,00010 48,000 8 66,000 11 Store responsibility margin $ 108,000 6% $60,000 10% s54,000 9% $ (6,000) (1) % Common fixed costs 36,000 Income from operations $ 72,000 4% All stores are similar in size, carry similar products, and operate in similar neighborhoods. Store 1 was established first and was built at a lower cost than were Stores 2 and 3. This lower cost results in less depreciation expense for Store 1. Store 2 follows a policy of minimizing both costs and sales prices. Store 3 follows a policy of providing extensive customer service and charges slightly higher prices than the other two stores. Top management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that management estimates closing Store 3 would cause sales at Store 1 to increase by $85,000, and sales at Store 2 to increase by $113,000. Closing Store 3 is not expected to cause any change in common fixed costs. Compute the increase or decrease that closing Store 3 should cause in: a. Total monthly sales for Drexel-Hall stores. b. The monthly responsibility margin of Stores 1 and 2. c. The company's monthly income from operations.
Solution :
1. Decrease in the Sale from the stores 3 600,000
Less : increase in sale from stores 1 and 2 180,000
Net decrease 420,000
2. Expected increase in the monthly count
Stores 1 = 60000 x 38% 22,800
Stores 2 = 120000 x 37% 44,400
Less : fixed cost
Monthly responsibility margin 22,800 44,400
3. Increase in the income by eliminating 6,000
store 3
Responsibility margin 67,200
Expected increase in the monthly income 73,200
mvk industries just paid a dividend of $1.70 that is expected to grow at 45% per year for the next three years at a constant rate of 5.5%.If the required return on the stock is 12%, what should be the current price of the stock> g'
Answer:
$27.59
Explanation:
Calculation to determine what should be the current price of the stock
Current price of common stock=(1.70*(1+5.5%))/(12%-5.5%)
Current price of common stock=(1.70*1.055)/0.065
Current price of common stock=1.7935/0.065
Current price of common stock=$27.59
Therefore what should be the current price of the stock is $27.59
If Jerry deposits $462 of cash in a checking account in the Tenth National Bank, what's the maximum change in the money supply in the economy
Answer:
$4620
Explanation:
It is assumed that the required reserve is 10%
Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.
Increase in the total value of checkable deposit is determined by the money multiplier
Money multiplier = amount deposited / reserve requirement
462 /0,1 = $4620
A voluntary market works in the concept of?
Answer: The concept of voluntary exchange: The act of buyers and sellers freely and willingly engaging in market transactions.
Explanation: The principle of voluntary exchange is based on consumers and producers acting in their self-interest. A voluntary exchange between a consumer and a producer makes both parties better off than they were before the exchange.
Select all the correct answers.
Ray has six hours before he goes to bed on a school night. He plans to spend an hour surfing the Internet, two hours playing his favorite
game, two hours watching TV, and one hour doing his homework. However, some of the math problems in his homework are extremely
difficult, and it will take him more than two hours to finish them. He knows his teacher won't give him any credit for the work unless it's
completely finished, and it's Important that he get good grade in the class. Which of these options for dealing with this situation are a
trade-off of Ray's time?
O He will spend only one hour on homework and leave out what he can't finish.
D He will spend one extra hour on homework and give up watching TV.
0
He will finish his homework while he is watching TV.
O He will play his favorite game for one hour and do homework for two hours.
0
He will ask his brother to help him with his homework.
Answer:
the answer is c.) he will play his favorite game for one hour and do his homework for two hours
what number should be included in the following data so that the median is 5.2? 4,7,11,5,3
Answer:
5.4
Explanation:
To find the median, we need to arrange the numbers in numerical order.
Hence, here we have 3, 4, 5, 7, 11.
Given that the question says we should look for numbers that would be included in the following data so that the median is 5.2. Hence, we need to add the number to the set.
Therefore the total number of the set will be 6 making it an even number. Hence we have to add the two numbers in the middle and divide them by 2.
Since the median is 5.2, hence we multiply it by 2 = 10.4
Therefore, we less 5 from 10.4, we have 5.4
To check we now have a set of numbers 3, 4, 5, 5.4, 7, 11
Where 5 + 5.4 = 10.4, then divided by 2 = 5.2 as median.
On September 30, World Co. borrowed $1,000,000 on a 9% note payable. World paid the first of four quarterly payments of $264,200 when due on December 30. In its December 31 balance sheet, what amount should World report as note payable
Answer: $758,300
Explanation:
The total amount payable on December 30 is:
= Amount borrowed + interest
= 1,000,000 + (1,000,000 * 9%/4 quarters)
= $1,022,500
After the payment of $264,200, balance will be:
= 1,022,500 - 264,200
= $758,300
In 2020, Meghann Carlson, a single taxpayer, has QBI of $118,600 and modified taxable income of $83,020 (this is also her taxable income before the QBI deduction). Given this information, what is Meghann's QBI deduction
Answer:
$16,604
Explanation:
Calculation to determine Meghann's QBI deduction
Using this formula
Meghann's QBI deduction = Taxable income *Tax rate
Meghann's QBI deduction =$83,020 x 20%
Meghann's QBI deduction =$16,604
Therefore Meghann's QBI deduction is $16,604
In January 2021 Vega Corporation purchased a patent at a cost of $203,000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January 2024, Vega spent $24,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss) in 2024 related to the patent should be:
Answer:
$201,100
Explanation:
Calculation to determine The amount charged to income (expense and loss) in 2024 related to the patent should be:
Total patent cost= $203,000 + $50,000
= $253,000
Amortized cost till year 2024 is
= ($253,000 ÷ 10 years) × 3 years
= $75,900
The three years is counted from 2021 to 2024
Now
Book value on Jan 2024 is
= $253,000 - $75,900
= $177,100
So,
Amount charged to income is
= $177,100 + $24,000
= $201,100
Therefore The amount charged to income (expense and loss) in 2024 related to the patent should be:$201,100
A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 20 years and has a current market price of $900. If the corporation sells more bonds, it will incur flotation costs of $25 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital
Answer: 4.10%
Explanation:
Solve for the current rate being used using the RATE function on Excel.
Number of periods = 15
Payment = 1,000 * 5% = 50
Present value = Current market price - floatation costs = 900 - 25 = 875
Future value = 1,000 face value
The result will be:
= 6.31%
If tax is 35%, after-tax cost is:
= 6.31% * (1 - 35%)
= 4.10%
3. Why are customers' buying motives sometimes difficult to determine?
Taxon Corp. granted restricted stock units (RSUs) representing 70 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within five years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $12 per share on the grant date. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives
Answer:
$168 million
Explanation:
Calculation to determine effect on earnings in the year after the shares are granted to executives
First step is to calculate the Fair value of shares represented by RSUs
Using this formula
Fair value of shares represented by RSUs=fair value per share×shares represented by RSUs shares granted
Let plug in the formula
Fair value of shares represented by RSUs=12 x 70million
Fair value of shares represented by RSUs=$840million
Now let calculate the effect on earnings
Using this formula
Effect on earnings=Fair value of shares represented by RSUs/Vesting period
Let plug in the formula
Effect on earnings= $840 million/5 years
Effect on earnings=$168 million
Therefore effect on earnings in the year after the shares are granted to executives is $168 million
Steve Pratt, who is single, purchased a home in Spokane, Washington, for $347,500. He moved into the home on February 1 of year 1. He lived in the home as his primary residence until June 30 of year 5, when he sold the home for $705,000. (Leave no answer blank. Enter zero if applicable.) a. What amount of gain will Steve be required to recognize on the sale of the home
Answer: $107,500
Explanation:
There is an "Exclusion of gain on sale of home" provision by the IRS that allows for a single tax payer to exclude up to $250,000 from the sale of their primary home. A home qualifies as primary if the owner has lived in it for 2 years or more so Steve's home here is a primary home.
The gain he received was:
= 705,000 - 347,500
= $357,500
From this gain, $250,000 can be excluded so total gain recognized:
= 357,500 - 250,000
= $107,500
Russell Starling, an Australian citizen and resident, received the following investment income during the current year: $5,000 of dividend income from ownership of stock in a U.S. corporation, $10,000 interest from a certificate of deposit in a U.S. bank, $3,000 of interest income earned from a loan to Clint Westwood, a U.S. citizen, and $2,000 capital gain from sale of a stock in a U.S. corporation. How much of Russell's income will be subject to U.S. taxation
Answer: $8000
Explanation:
The amount of Russell's income that will be subject to U.S. taxation will be the $5,000 of dividend income from ownership of stock in a U.S. corporation and the $3,000 of interest income earned from a loan to Clint Westwood, a U.S. citizen.
Both the interest that is earned from a deposit in the U.S. bank and the capital gain are both exempted from the U.S. tax due to the fact that the income is from a foreign source income. Therefore, Russell's income that will be subject to U.S. taxation will be:
= $5000 + $3000
= $8000
A solid figure is shown it is a rectangle prism
Answer:
ok WHAT'S YOUR QUESTION
Explanation:
Company has projected the following cash flows: Year 1: 85,000; Year 2: 105,000; Year 3: 109,000; Year 4: 115,000. The valuator has determined an appropriate discount rate is 26% and the long-term growth rate is 2%. Using the Gordon Growth Model, what is the present value of the company's terminal value
Answer:
193,912
Explanation:
First and foremost, the terminal value also known as horizon value is the cash flows for the company beyond year 4 to infinity, in other words, the cash flows attributed to all periods after the first 4 years whose cash flows were highlighted.
The formula for terminal value is provided below:
TV=Year 4 cash flow*(1+ long-term growth rate)/(discount rate- long-term growth rate)
Year 4 cash flow=115,000
long-term growth=2%
discount rate=26%
terminal value=115,000*(1+2%)/(26%-2%)
terminal value=488,750
The terminal value is stated in year 4 terms, hence, needs to be discounted 4 years backward in order to determine its present value:
PV of terminal value=488,750/(1+26%)^4
PV of terminal value= 193,912
A worker wants to set aside some money for retirement, hoping to live off the interest income. If the interest rate is 8% and the worker wishes to draw interest of $2,000 per year, how much should the worker save before retirement
Answer:
$25,000
Explanation:
Assuming it is to be perpetuity. Amount to be saved = P/I
Amount to be saved = Annual interest amount / Annual interest rate
Amount to be saved = $2,000/8%
Amount to be saved = $2,000/0.08
Amount to be saved = $25,000
So, the worker should save $25,000 before retirement if he wishes to draw interest of $2,000 per year.
on january 1 ripken corporation had 80000 shares of 10 par value common stock outstanding. on may 7 the company declared a 10 stock divident to stockholders of record may 21 the market value of the stock was 13 on may 7 the entry to record the transaction of may 7 would include a
Answer:
Debit : Dividend $8,000
Credit : Shareholders for dividends $8,000
Explanation:
We recognize equity item - dividend and a liability - shareholders for dividend on declaration date.
Dividend = 80000 shares x $10 x 10% = $8,000
Q:
What type of policy does the Fed use to counteract a contraction?
A:
1. О fiscal policy
2. policy lags
3. expansionary monetary policy
4. contractionary monetary policy
Answer:
3. expansionary monetary policy
Explanation:
To help accomplish this during recessions, the Fed employs various monetary policy tools in order to suppress unemployment rates and re-inflate prices. These tools include open market asset purchases, reserve regulation, discount lending, and forward guidance to manage market expectations.
Canadian Beer reported equipment sold for $258 million cash and new equipment purchased $1,533 million cash. The equipment sold had a net book value of $186 million. Cash flow from investing activities would show:
Answer:
The answer to this question can be defined as follows:
Explanation:
Please find the table in the attached file.
An inflow of $258 million and an outflow of $1,533 million.
The cash outflow for $1,533 is reported separately for investment activities and cash outflow for $2,58 is reported. The number of revenues received is indicated as the inflow.
Manchester Corporation, a U.S. corporation, incurred $100,000 of interest expense during the current year. Manchester manufactures inventory that is sold within the United States and abroad. The total tax book value of its U.S. production assets is $20,000,000. The total tax book value of its foreign production assets is $5,000,000. What amount of interest expense is apportioned to the company's foreign source income for foreign tax credit purposes, assuming the interest expense is fully deductible in the current year
Answer:
the amount of the interest expense is $20,000
Explanation:
The computation of the amount of the interest expense is shown below;
= Interest expense × total tax book value ÷ (total tax book of U.S + total tax book value of its foreign production assets)
= $100,000 × $5,000,000 ÷ ($5,000,000 + $20,000,000)
= $100,000 × $5,000,000 ÷ $25,000,000
= $20,000
hence, the amount of the interest expense is $20,000
The article discusses actions taken by Mary Conger, a master plumber who teaches mandated continuing education classes so that plumbers can maintain their licenses. If we take an opportunistic view of her action, it is a good example of what? Choose one: A. copyright infringement B. consolidation C. rent-seeking behavior D. quality assurance
Answer:
Option D
Explanation:
In simple words, Quality assurance, described by ISO 9000 as element of quality control focusing on ensuring trust that performance standards will be met," is a method of preventing errors and failures in manufacturing goods and avoiding issues when supplying products or services to consumers.
Thus, from the above we can conclude that the correct answer is D.
As a result if this we can see that opportunistic view of her action, it is a good example of quality assurance.
According to the question, we are to discuss actions taken by Mary Conger, a master plumber who teaches mandated continuing education classes so that plumbers can maintain their licenses.
Therefore, option D is correct because her action, it is a good example of quality assurance.
Learn more about quality assurance at:
https://brainly.com/question/17493537
Consider a 5-year bond with a par value of $1,000 and an 9% annual coupon. If interest rates change from 9% to 5% the bond's price will: increase by $__.
Answer:
$173.18
Explanation:
First and foremost, we need to determine the prices for the bond at 9% and 5% yields respectively, using a financial calculator as shown below:
The financial calculator should be set to its end mode before making the following inputs:
9% yield:
N=5(number of annual coupons in 5 years)
PMT=90(annual coupon=face value*coupon rate=$1000*9%=$90)
I/Y=9(yield of 9% without the "%" sign)
FV=1000
CPT
PV=$1000.00
5% yield:
N=5(number of annual coupons in 5 years)
PMT=90(annual coupon=face value*coupon rate=$1000*9%=$90)
I/Y=5(yield of 5% without the "%" sign)
FV=1000
CPT
PV=$1,173.18
change in price=$1,173.18-$1,000.00
change in price=$173.18
In computing amortization of a leased asset where there is no bargain purchase option, the lessee should subtracta. no residual value and depreciate over the term of the lease.b. an unguaranteed residual value and depreciate over the term of the lease.c. a guaranteed residual value and depreciate over the life of the asset.d. an unguaranteed residual value and depreciate over the life of the asset.
Answer: a. no residual value and depreciate over the term of the lease
Explanation:
A bargain purchase option allows the holder of a lease to be able to purchase the leased asset at the end of the lease period. This is for finance leases not for operating leases so if there isn't one, the lease becomes operating.
When there is no such option, the company leasing the asset will not be able to record a residual value (which is the value they would have bought it at) but instead will have to depreciate the lease over its term leading to higher depreciation amounts.
n a continuous review system, the average daily demand for a part is Normally distributed with mean 20 and standard deviation of 4. The lead time to receive the part from the time it is ordered is 9 days. The appropriate re-order point for this part if we want a 95% service level is a. 200 b. 20 c. 180 d. 184
Answer: 200
Explanation:
Based on the information given in the question, the appropriate re-order point for this part if we want a 95% service level will be:
Mean demand = 20
Standard deviation of demand = 4
Lead time = 9 days
Service level = 95% = 95/100 = 0.95
Re-order Point will be:
= (demand × lead time) + (z* × std dev × ✓leadtime)
= (20 × 9) + (1.645 × 4 × ✓9)
= (180) + (1.645 × 4 × 3)
= 199.74
= 200 approximately
The re-order point is 200