Answer:
It is completely false
Explanation:
Because you should first tell the reason
An alumnus of West Virginia University wishes to start an endowment that will provide scholarship money of $40,000 per year beginning in year 5 and continuing indefinitely. The donor plans to give money now and for each of the next 2 years. If the size of each donation is exactly the same, the amount that must be donated each year at i = 8% per year is closest to:___.
a) $190.820.
b) $122.280.
c) $127.460.
d) $132.040.
Answer:
A
Explanation:
Present value of a perpetuality = amount / interest rate
= $40,000 / 0.08 = $500,000
Let D denote denote denotions
[tex]D + \frac{D}{1 + 0.8} + \frac{D}{1.08^{2} } = $500,000[/tex]
D = $190.820.
Consumers spend _______ a year on credit card penalties and fees.
$10 million
$110 billion
$90 billion
$80 million
A large technology Company decides to create an entrepreneurship friendly space, where small enterprises can operate in close proximity to one another. To create this space, which will be called Zone Forty-Two, the Company will construct office space, which will be rented to tenants for free. The Company is considering two start-up firms, B Enterprises (a business software producer) and M Enterprises (a medical software producer). Both firms are currently located in different small towns of California, where they work out of their homes hence pay no rent. The sales volume for a firm if it locates at Zone Forty-Two depends on whether the other firm is also present. These sales volumes, along with the firms’ sales at their current home locations, are presented in Table 1.
table 1 home- town locations zone forty-two(alone) zone forty-two(with other firm)
b enterprises 600 600 670
m enterprises 700 700 950
Give an intuitive explanation why the sales figures are in the last column of Table 1 differ from the first two columns of the table. Hint: Elaborate on different types of economies that are likely to benefit firms locating next to each other in Zone Forty-Two.
Answer:
Zone-Forty-Two
Types of Economies Benefiting Firms Locating Next to Each Other:
Basically, internal and external economies of scale result from firms locating next to one another. While internal economies of scale are specific to a firm because they are internally generated savings, external economies of scale bring about larger changes outside the firm so that all the firms that are located next to one another benefit.
For example, when firms locate next to each other, there is increased procurement management, availability of specialized managers, availability of financial sources, and market improvement. These are internally-focused economies.
On the other hand, the external benefits that come from agglomeration of firms include the availability of common infrastructure, supply chain, innovation and ideas, and ability to lobby the authorities.
As a result of these economies or benefits, firms b and m enterprises are able to generate more increased sales as they locate close to each other at Zone Forty-Two than they could generate while they were located at their home-towns or alone at Zone Forty-Two.
Explanation:
a) Data and Calculations:
Firms' Sales
Firms Hometown Zone forty-two Zone forty-two
locations (alone) (with other firm)
b enterprises 600 600 670
m enterprises 700 700 950
These economies resulting from proximate locations of firms include the growth of technical, marketing, commercial, financial benefits, and some network effects. Therefore, it is always interesting to study how firms grow more as they compete and learn from one another than they do when they dominate their individual hometown markets.
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
Issued 30,000 shares of no-par common stock in exchange for $300,000 in cash.
Purchased equipment at a cost of $40,000. $10,000 cash was paid and a notes payable to the seller was signed for the balance owed.
Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
Paid $5,000 in rent on the warehouse building for the month of March.
Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.
Paid $70,000 on account for the merchandise purchased in 3.
Collected $55,000 from customers on account.
Recorded depreciation expense of $1,000 for the month on the equipment.
Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Wainwright Corporation
Journal Entries:
a. Debit Cash $300,000
Credit Common Stock $300,000
To record the issue of 30,000 shares of no-par common stock for cash.
b. Debit Equipment $40,000
Credit Cash $10,000
Credit Notes Payable $30,000
To record the purchase of equipment.
c. Debit Inventory $90,000
Credit Accounts payable $90,000
To record the purchase of inventory on account.
d. Debit Accounts receivable $120,000
Credit Sales revenue $120,000
To record the sale of goods on account.
Debit Cost of Goods Sold $70,000
Credit Inventory $70,000
To record the cost of goods sold.
Debit Rent Expense $5,000
Credit Cash $5,000
To record the rent expense for the month.
Debit Prepaid Insurance $6,000
Credit Cash $6,000
To record the prepayment of insurance for one year.
Debit Accounts payable $70,000
Credit Cash $70,000
To record the payment on account.
Debit Cash $55,000
Credit Accounts receivable $55,000
To record the collection of cash from customers.
Debit Depreciation Expense - Equipment $1,000
Credit Accumulated Depreciation - Equipment $1,000
To record the depreciation expense for the month.
Explanation:
General journal entries are used to initially record all types of transaction in the accounting records. They form the basis for posting to the general ledger. They also indicate the accounts to be debited or credited in the general ledger.
A company has fixed costs of $96,800. Its contribution margin ratio is 44% and the product sells for $61 per unit.
What is the company's break-even point in dollar sales?
$220,000
Explanation:
Calculation for the company's break-even point in dollar sales
Using this formula
Break-Even point in dollars sales= Fixed Costs ÷ Contribution Margin
Let plug in the formula
Break-Even point in dollars sales=$96,800/44%
Break-Even point in dollars sales=$220,000
Therefore the company's break-even point in dollar sales will be $220,000.
Rubin, a freelance software developer, has a meeting with an independent bakery owner to discuss a potential project. Before meeting with the client, Rubin does a thorough research on the client's business and the client's educational background. He develops his proposal accordingly, ensuring to use common words instead of technical jargon. In the given scenario, which of the following communication guidelines does Rubin follow?
A) Avoid bias.
B) Avoid the use of slang.
C) Be concise.
D) Analyze your audience.
Answer:
d
Explanation:
Communication encompasses all the processes of transmitting information from one person to another.
In order to effectively communicate, one must analyse their audience to ensure that the message is effectively communicated.
Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 in wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000.
1. Calculate Roquan's deduction for qualified business income.
2. Assume the same facts as earlier, except Roquan's taxable income before the deduction for qualified business income is $300,000.
Answer:
A. $18,000
B. No QBI deduction
Explanation:
a) Calculation for Roquan’s deduction for qualified business income.
Using this formula
Roquan's qualified business income.
= 20% x QBI
Let plug in the formula
Roquan's qualified business income
= 20% x $90,000
Roquan's qualified business income= $18,000
Therefore Roquan’s deduction for qualified business income will be $18,000
b) Based on the information given if we assumed that Roquan's taxable income before the deduction for qualified business income is the amount of $300,000 which means that Roquan's income is higher than the amount of $213,300 hence, NO qualified business income deduction (QBI) will be allowed.
THE
Guy Zone
Janna and her friend Leah both work for telecommunications companies. One night over
dinner, they discuss some new product ideas they think would be successful in their industry.
Janna has a great idea that Leah loves. The next week, Leah presents the idea to her manager
who says he will consider taking it to the next new-product committee meeting. Was Leah's
action ethical? Do you consider this to be "stealing the idea from her friend?
Answer:
Leah should ask from Janna before he discusses the idea with his manager.
Explanation:
Leah action is not ethical since it was Janna idea and Leah presented to his manager as if it is his idea. Janna and Leah both are in same industry so if Leah promotes the Janna idea to his manager his company will be more successful than Janna. Leah should have taken permission from Janna before discussing the idea with his manager.
You borrow $6,230 to buy a car. The terms of the loan call for monthly payments for 5 years a rate of interest of 6 percent. What is the amount of each payment?a. $115.26b. $88.74c. $113.78d. $120.44e. $89.29
Answer:
orrow $6230 to buy a car. The terms of the loan call for monthly payments for 5 years a rate of interes… ... of interest of 6 percent.
Explanation:
Government-wide statements report on assets and liabilities that are denied recognition on funds statements. Entrepreneurs Consultants, a state agency, was estab- lished to provide consulting services to small businesses. It maintains only a single general fund and accounts for its activities on a modified accrual basis. During its first month of operations, the association engaged in, or was affected by, the following transactions and events:
1. It received an unassigned grant of $100,000.
2. It purchased five computers at $2,000 each.
3. It paid wages and salaries of $6,000.
4. Itborrowed$24,000fromabanktoenableittopurchase an automobile. It gave the bank a long-term note.
5. It purchased the automobile for $24,000.
6. It made its first payment on the note—interest of $200.
7. It destroyed one of its computers in an accident. The computer was not insured.
a. Prepare journal entries in the general fund to record each of the transactions or other events.
b. Prepare a balance sheet and a statement of revenues and expenditures for the general fund.
c. Prepareagovernment-widestatementofnetposition (balance sheet) and statement of activities. These should be on a full accrual basis. Assume that the capital assets have a useful life of five years and that no depreciation is to be charged on the computer that was destroyed.
Answer:
1. Cash (Dr.) $100,000
Unassigned grant (Cr.) $100,000
2. Computers (Dr.) $10,000
Cash (Cr.) $10,000
3. Salaries and Wages (Dr.) $6,000
Cash (Cr.) $6,000
4. Cash (Dr.) $24,000
Long term bank loan - Notes payable (Cr.) $24,000
5. Automobile (Dr.) $24,000
Cash (Cr.) $24,000
6. Interest Expense (Dr.) $200
Cash (Cr.) $200
7. no entry
Explanation:
Balance Sheet
Assets:
Cash $90,000
Computer $10,000
Automobile $24,000
Total Assets $124,000
Liabilities:
Notes Payable $24,000
Equity:
Grant Received $100,000
Total Equity and Liability $124,000
Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $ 4 $ 9 $ 4 $ 17 7,500 units 4 6 3 13 If Shum produces 10,000 units, the total cost would be:
Answer:
For making 10,000 units
Type A cost = 40,000
Type B Cost = 90,000
Type C Cost = 25,000
Explanation:
Given - Shum Manufacturing, which uses the high-low method, makes a
product called Kwan. The company incurs three different cost
types (A, B, and C) and has a relevant range of operation between
2,500 units and 10,000 units per month. Per-unit costs at two
different activity levels for each cost type are presented below.
Type A Type B Type C Total
5,000 units $4 $9 $4 $17
7,500 units $4 $6 $3 $13
To find - If Shum produces 10,000 units, the total cost would be ?
Proof -
As we know that
Total cost = Variable cost per unit × Units + Fixed Cost
Now,
As per the question ,
Highest Activity unit = 7,500 units
Lowest Activity unit = 5,000 units
Now,
Variable cost per unit = Change in cost / Change in activity unit
= ( Highest Activity cost - Lowest Activity cost ) / ( Highest Activity unit - Lowest Activity unit )
Type A Type B Type C
Highest Activity Cost 30,000 45,000 22,500
Lowest Activity Cost 20,000 45,000 20,000
Variable Cost Per unit 4 0 1
Fixed Cost 0 90,000 15,000
Now,
Statement Showing Total Cost for 10,000 units
Particulars Type A Type B Type C
Variable Cost 40,000 0 10,000
Fixed Cost 0 90,000 15,000
Total 40,000 90,000 25,000
∴ we get
For making 10,000 units
Type A cost = 40,000
Type B Cost = 90,000
Type C Cost = 25,000
Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:
Answer:
Underapplied by $3,000
Explanation:
Calculation for what The Corporation's manufacturing overhead cost for the year was:
First step is to calculate the Predetermined Overhead rate
Predetermined Overhead rate=( $ 330,000/ 55,000)
Predetermined Overhead rate= $ 6 per labor hour
Now let calculate the Manufacturing overhead cost
Manufacturing overhead cost= (6 x 57 000)-$345,000
Manufacturing overhead cost=$342,000-$345,000
Manufacturing overhead cost=Underapplied by $3,000
Therefore The Corporation's manufacturing overhead cost for the year was:underapplied by $3,000
1. There are 20 forging presses in the forge shop of a small company. The shop produces batches of forgings requiring a setup time of 3.0 hours for each production batch/machine. Average standard time for each part in a batch is 45 seconds, and there are 600 parts in a batch/machine. The plant workforce consists of two workers per press, two foreman, plus three clerical support staff. (a) Determine how many forged parts can be produced in 1 month, if there are 8 hours worked per day and average of 21 days per month at one shift per day. (b) What is the labor productivity ratio of the forge shop, expressed as parts per worker-hour
Answer:
The solution according to the given scenario is described below.
Explanation:
The given values are:
No. of foreign presses,
= 20
Required setup time,
= 3 hours
Average standard time,
= 45 seconds
Average produced batch,
= 600
Now,
(a)
The number of workers will be:
= [tex]20\times 2+2+3[/tex]
= [tex]40+2+3[/tex]
= [tex]45[/tex]
The total time for batch's production will be:
= [tex]3\times 60+(45\times \frac{600}{60} )[/tex]
= [tex]180+45\times 10[/tex]
= [tex]630 \ minutes[/tex]
or
= [tex]10.5 \ hours[/tex]
The total number of hours per month will be:
= [tex]8\times 21[/tex]
= [tex]168 \ hours[/tex]
then,
The total batches per month will be:
= [tex]\frac{168}{10.5}[/tex]
= [tex]16 \ batches \ per \ month[/tex]
Total batches = [tex]20\times 16[/tex]
= [tex]320[/tex]
Now,
The produced pieces will be:
= [tex]320\times 600[/tex]
= [tex]192000 \ pieces/month[/tex]
(b)
[tex]Labour \ productivity= \frac{ Total \ production}{ Labour \ hours }[/tex]
On substituting the given values, we get
[tex]=\frac{192000}{(8\times 21\times 45)}[/tex]
[tex]=25.4 \ per \ worker \ hours[/tex]
The labor productivity ratio is the ratio analytical tool that determines the efficiency of labor to perform their task and provide higher returns and production in the specified time limit. It is determined by taking into consideration the total number of products and the labor hours provided to each labor per day.
a) The number of forged parts that can be produced in 1 month is 192,000 pieces per month.
b) The labor productivity ratio of the forged shop is 25.40 per labor hour.
Computations:
a)
[tex]\begin{aligned}\text{Number of pieces}&=\text{Total Batch}\times\text{Parts in Batch per Machine}\\&=320\;\text{batches}\times600\;\text{parts}\\&=192,000\;\text{pieces per month}\end{aligned}[/tex]
Working Note:
[tex]\begin{aligned}\text{Number of Workers}&=\left(\text{No. of foreign presses}\times\text{Worker per press}\right)\\&+\text{Worker per press}+\text{Setup Time}\\&=\left(20\times2 \right )+2+3\\&=45\;\text{no. of workers} \end{aligned}[/tex]
[tex]\begin{aligned}\text{Time for batch production}&=\text{Setup Time}\times\text{Average produced batch}\\&+\left(\text{No. of workers}\times\frac{\text{Average produced batch}}{\text{Minutes}} \right )\\&=3\times60+\left(45\times\frac{600}{60}\right)\\&=630\;\text{minutes or}\;10.50\;\text{hours}\end{aligned}[/tex]
[tex]\begin{aligned}\text{Total Batches}&=\text{No. of Foreign Presses}\times\text{Total Batches per month}\\&=20\times\left(\frac{\text{hours per day}\times\text{days per month}}{\text{Total time for batch production}} \right )\\&=20\times\left(\frac{8\times21}{10.50} \right )\\&=320\end{aligned}[/tex]
b) The labor productivity is computed as follows:
[tex]\begin{aligned}\text{Labor Productivity}&=\frac{\text{Total Production}}{\text{Labor hours}}\\&=\frac{192,000}{8\times21\times45}\\&=25.4\;\text{per worker hours}\end{aligned}[/tex]
To know more about labor productivity, refer to the link:
https://brainly.com/question/16016669
A household consists of a married couple and their two-year-old daughter. The couple's daughter had no income and lived with her parents all of last year. How many exemptions can the couple claim on last year's tax return if they file with the "Married filing jointly" status?
Answer:
3 is the answer
2) Company issues
to invites its members to subscribe for its
Deposit scheme. (Advertisement, Circular, Newspapers)
Answer:
Advertisement.
Explanation:
An advertisement can be defined as a strategic process or technique which is typically used to bring an announcement, information or notice to the general public.
This ultimately implies that, an advertisement is a means of communication through the use of mediums such as newspapers, blogs, magazines, television, radio, flyers, pamphlets, etc., to bring a specific information or announcement to the general public.
Generally, advertisements are considered to be a form of promoting an idea, product and services.
Hence, company issues advertisement to invites its members to subscribe for its Deposit scheme.
Quickbooks Online. IRS guidelines require specific information to substantiate deductible automobile expenses. Which 3 items are included in the substantiation requirements?
Answer:
✓Vehicle type
✓date placed in service
✓total mileage (including business, commuting and personal)
Explanation:
IRS guidelines available for automobile
deductible is that if one is using his cat for business purposes, the entire cost of ownership as well as operation can be deducted. But if the car is for business and personal purposes, the cost for the business use can be deducted.
The three items that are are included in the substantiation requirements are;
✓Vehicle type
✓date placed in service
✓total mileage (including business, commuting and personal)
The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a. Journalize the entry to record the purchase of materials in April. If an amount box does not require an entry, leave it blank. a. Materials fill in the blank 0405c7fed078fd8_2 fill in the blank 0405c7fed078fd8_3 Accounts Payable fill in the blank 0405c7fed078fd8_5 fill in the blank 0405c7fed078fd8_6 b. Journalize the entry to record the requisition of materials in April. If an amount box does not require an entry, leave it blank. b. fill in the blank 6c73b5f42041fa9_2
Answer:
Note: The missing question is attached as picture
a. Accounts title & Explanations Debit$ Credit$
Material inventory 641,200
($122,700+$170,600+$336,200+$11,700)
Accounts payable 641,200
(For material purchased on account)
Note: Both, Direct material and Indirect material is included in Materials
b. Accounts title & Explanations Debit$ Credit$
Work in process inventory 652,300
($233,700+$211,300+$136,200)
Manufacturing Overheads 6,100
Material inventory 658,400
(For material issued for production both as direct and indirect material)
Note: Requisition of direct materials are charged to WIP and requisition of indirect materials forms part of factory overhead.
Kyle had a splitting headache. His buddy Cyrus gave him a couple of lime-green pills to take away the pain. When Kyle awoke, Cyrus was lying next to him in a pool of blood. If Kyle is tried for a crime, what could be his defense?
insanity
duress
intoxication
necessity
Answer:
necessity
Explanation:
This is necessity beause it might have been on accident to help cyrus but became a bloody murder,seems like a 3rd or a second degree murder,most likely 3rd degree,it just happend.
Answer:
C
Explanation:
bro read it and u'll know other person is wrong
An incomplete subsidiary ledger of materials inventory for May is as follows:
RECEIVED ISSUED BALANCE
Receiving Materials
Report Unit Requisition Unit
Number Quantity Price Number Quantity Amount Date Quantity Price Amount
May 1 285 $30.00 $8,550
40 130 $32.00 May 4
91 365 May 10
44 110 38.00 May 21
97 100 May 27
Required:
A. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO.
B. Determine the materials inventory balance at the end of May.
C. Journalize the summary entry on May 31 to transfer materials to work in process. Refer to the Chart of Accounts for exact wording of account titles.
D. Explain how the materials ledger might be used as an aid in maintaining inventory quantities on hand.
Chart of Accounts
CHART OF ACCOUNTS
General Ledger
ASSETS
110 Cash
121 Accounts Receivable
125 Notes Receivable
126 Interest Receivable
131 Materials
132 Work in Process
133 Factory Overhead
134 Finished Goods
141 Supplies
142 Prepaid Insurance
143 Prepaid Expenses
181 Land
191 Factory
192 Accumulated Depreciation-Factory
LIABILITIES
210 Accounts Payable
221 Utilities Payable
231 Notes Payable
236 Interest Payable
241 Lease Payable
251 Wages Payable
252 Consultant Fees Payable
EQUITY
311 Common Stock
340 Retained Earnings
351 Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Wages Expense
531 Selling Expenses
532 Insurance Expense
533 Utilities Expense
534 Office Supplies Expense
540 Administrative Expenses
560 Depreciation Expense-Factory
590 Miscellaneous Expense
710 Interest Expense
Materials Inventory
Shaded cells have feedback.
A. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO.
RECEIVED
ISSUED
BALANCE
Receiving Materials
Report Unit Requisition
Number Quantity Price Number Quantity Amount Date Quantity Unit Price Amount
May 1 285 $30.00 $8,550
40 130 $32 May 4
91 365 May 10
44 110 38 May 21
97 100 May 27
Points:
12 / 20
B. Determine the materials inventory balance at the end of May.
Points:
0 / 1
Feedback
Check My Work
A and B. Calculate the amount of each materials issue, using FIFO. In the Balance section, separate each different unit price and its quantity.
Journal
Shaded cells have feedback.
C. Journalize the summary entry on May 31 to transfer materials to work in process. Refer to the Chart of Accounts for exact wording of account titles.
How does grading work?
PAGE 10
JOURNAL
C. Increase work in process and decrease materials for the total of issuances found in Req. A.
Final Question
Shaded cells have feedback.
D. Explain how the materials ledger might be used as an aid in maintaining inventory quantities on hand.
Comparingquantities on hand as reported in the materials ledger with predetermined order points enables management to order materials beforea lack of materials causes idle time.
Answer:
An incomplete subsidiary ledger of materials inventory for May is as follows:
A. Materials Issuances and balances for the materials subsidiary ledger under FIFO:
RECEIVED ISSUED BALANCE
Receiving Materials
Report Unit Requisition Unit
Number Qty Price Number Qty Amount Date Qty Price Amount
May 1 285 $30.00 $8,550
40 130 $32.00 May 4 415 $12,710
91 365 May 10 50 $32.00 $1,600
44 110 38.00 May 21 160 $5,780
97 100 May 27 60 $38.00 $2,280
B. The materials inventory balance at the end of May is 60 units at $2,280.
C. Debit Work in Process $14,610
Credit Materials $14,610
To record the transfer of materials to work in process.
D. The materials ledger shows the quantities and costs of materials remaining at any point in time. It also indicates the dates for all related transactions. With the quantities of materials received in and issued out and the balances indicated clearly, it is possible to ensure that a required level of inventory remains in stock and to place orders at the right time.
Explanation:
a) Raw materials Inventory Issuance:
Quantity issued = 365
Cost of units issued on May 10 = $11,110 ($12,710 - 1,600)
Cost of units issued on May 27 = $3,500 ($5,780 - 2,280)
Total cost of units issued out = $14,610
Owens Corning has total assets of $800,000, long-term debt of $240,000, stockholders' equity of $350,000, and current liabilities of $210,000. The dividend payout ratio is 30 percent and the profit margin is 8 percent. Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity. What is the external financing need (EFN) if the current sales of $1,000,000 are projected to increase by 20 percent
Answer:
$50,800
Explanation:
Increase in assets = Current Assets * Percentage change in sales = $800,000 * 20% = $160,000
Increase in current liabilities = Current liabilities * Percentage change in sales = $210,000 * 20% = $42,000
Increase in retaned earning = Increased sales*Profit Margin*Retention ratio = $1,000,000*120%*8%*(1-0.30) = $67,200
External financing need = Increase in Assets - Increase in liabilities - Increase in retained earning
External financing need = $160,000 - $42,000 - $67,200
External financing need = $50,800
You bought two acres of land for $200,000 ten years ago. Although it is zoned for commercial use, it currently holds eight small, singlefamily houses. A property management firm that wants to continue leasing the eight houses has offered you $400,000 for the property. A developer wants to build a 12-story apartment building on the site and has offered $600,000. What value should you assign to the property
Answer:
$500,000
Explanation:
in order to calculate the value you should determine the expected return or sales price of the land = price of land x probability of sale
In this case, you have two offers and apparently you haven't decided which to choose, so the expected return = ($400,000 x 50%) + ($600,000 x 50%) = $200,000 + $300,000 = $500,000
Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits$75per hourAnnual labor hours 6,350hoursAnnual materials purchase$1,206,250 Materials purchasing, handling, and storage$241,250 Overhead for depreciation, taxes, insurance, etc.$670,000 Target profit margin for both labor and materials 25% What should Shale set as the materials markup per dollar of materials used
Answer:
45%
Explanation:
Annual material purchase $1,206,250
Material purchasing, handling and storage cart $241,250
Material purchasing, handling and storage % on 20%
material purchase ($241,250/$1,206,250*10)
Target profit margin 25%
Material markup per dollar of material used 45%
Problem 4-54 (LO. 4, 5) Linda and Don are married and file a joint return. In 2020, they received $12,000 in Social Security benefits and $35,000 in taxable pension benefits and interest. The applicable higher/lower bases for Social Security computations for married filing jointly are $32,000 and $44,000. a. Compute the couple's adjusted gross income on a joint return. $fill in the blank 7fe2a4f7afc4f82_1 b. Don would like to know whether they should sell for $100,000 (at no gain or loss) a corporate bond that pays 8% in interest each year and use the proceeds to buy a $100,000 nontaxable State of Virginia bond that will pay $6,000 in interest each year. Assume that their marginal tax rate is 12%. Although the interest received on the state bond is , it still is in modified adjusted gross income, impacting the taxability of the Social Security benefit. Their AGI would be $fill in the blank c572caf67feefd0_3 . c. In the preceding situation part (a), if Linda works part-time and earns $30,000, by how much would Linda and Don's adjusted gross income increase
Answer:
The answer to this question can be defined as follows:
Explanation:
For point a:
Chargeable advantages to social welfare:
[tex]=0.5(\$35000+0.5(\$12000)-\$32000)\\\\ =0.5(9000)\\\\=\$4500[/tex]
Pension benefits etc $35 thousand
Total AGI= [tex]\$39,500[/tex]
For point b:
Additional revenue [tex](\$3,500-\$8,000) = \$27,000[/tex]
Taxable [tex]SSB0.5(27000+\$6000+0.5\times 12000-\$32000)=\$3500[/tex]
AGI = [tex]\$30,500[/tex]
Less: AGI in (a) [tex](\$39,500)[/tex]
Decrease [tex](\$9000)[/tex]
Tax payers' financial income has been down by [tex]\$2000[/tex], but taxable AGI is down by $9,000. The reduction of [tex]\$650(\$2000-\$9000\times 15 \%)[/tex] with a [tex]15\%[/tex]MTR after the tax income.
For point c:
The least of follows [tex]1). \ \ 0.85( \$65000+0.5 \times 12000-\$44000) = \$22950[/tex]
Smaller than that one
Calculated amount with the first formula
Less:
[tex]0.5\times 12000 = \$6000\\\\0.5(\$65000+0.5 \times 12000-\$32000)= \$19500 \ \ or \ \ \$6000\\\\\$22950 +\$6000 = \$28950 \\\\2.0.85 \times 12000 = \$10200[/tex]
That is why Linda and Don have [tex]85\%[/tex]of their gross income from the SSB [tex]\$10200[/tex].
The benefits of social security [tex]\$10200[/tex]
Additional revenues [tex]=\$35000+\$30000 \ \ (addl.inc)= \$ 65000[/tex]
AGI [tex]\$75,200[/tex]
Less (a) AGI ([tex]\$39,500[/tex])
Increases [tex]\$ 35,700[/tex]
AGI growth exceeds earnings increases because more SSB is taxed.
Consider the following transactions for Huskies Insurance Company:
a. Equipment costing $42,000 is purchased at the beginning of the year for cash. Depreciation on the equipment is $7,000 per year.
b. On June 30, the company lends its chief financial officer $50,000; principal and interest at 7% are due in one year.
c. On October 1, the company receives $16,000 from a customer for a one-year property insurance policy. Deferred Revenue is credited.
For each item, record the necessary adjusting entry for Huskies Insurance at its year-end of December 31. No adjusting entries were made during the year.
Answer:
31-Dec
Dr Depreciation expense $7,000
Cr Accumulated Depreciation - Equipment $7,000
31-Dec
Dr Interest receivable $1,750
Cr Interest revenue $1,750
31-Dec
Dr Deferred Revenue $4,000
Cr Revenue or Service Revenue $4,000
Explanation:
Preparation of the necessary adjusting entry for Huskies Insurance at its year-end of December 31.
31-Dec
Dr Depreciation expense $7,000
Cr Accumulated Depreciation - Equipment $7,000
(Being to adjust 12 month depreciation)
31-Dec
Dr Interest receivable ($50,000 x 7% x 6/12) $1,750
Cr Interest revenue $1,750
(Being to adjust 6 month interest revenue accrued)
31-Dec
Dr Deferred Revenue ($16,000 x 3/12) $4,000
Cr Revenue or Service Revenue $4,000
(Being to record earned revenue for 3 months)
3) Tobi owns a perpetuity that will pay $1,500 a year, starting one year from now. He offers to sell you all of the remaining payments after the next 25 payments have been paid. (A) What price should you offer him for payments 26 onward if you desire a rate of return of 8 percent
Answer:
you should pay up to $2,737.84 to Tobi
Explanation:
first, the terminal price of the perpetuity must be determined = annual payment / r = $1,500 / .08 = $18,750
now, the present day value of the future terminal value
present value = future value / (1 + r)ⁿ = $18,750 / (1 + 8%)²⁵ = $2,737.84
Who is credited with pioneering the principles of the scientific approach to management ?
Answer:
Frederick Winslow Taylor
Frederick Winslow Taylor was an American mechanical engineer. He was widely known for his methods to improve industrial efficiency. He was one of the first management consultants.
Item1 1 points eBookAskReferencesItem 1 TB MC Qu. 06-91 The following information... The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 8,419 Accounts receivable 70,422 Merchandise inventories 60,362 Prepaid expenses 4,100 Accounts payable $ 14,950 Notes payable 86,638 Other current liabilities 9,500 If net sales for the current year were $612,000, the firm's days' sales uncollected for the year is: (Use 365 days a year.)
Answer: 42 days
Explanation:
To solve the above question, first, we will have to calculate the debtors turnover ratio which is the date sales uncollected for the year. This will be:
= Sales/Average Accounts Receivables
= $612,000 / $70,422
= 8.69 times
Since we are using 365 days for a year, then the firm's days sales uncollected for the year will be calculated as:
= 365 / 8.69
= 42 days
Inflation, nominal interest rates, and real rates. From 1991 to 2000, the U.S. economy had an annual inflation rate of around %. The historical annual nominal risk-free rate for this same period was around %. Using the approximate nominal interest rate equation and the true nominal interest rate equation, compute the real interest rate for that decade. What is the estimated real interest rate using the approximate nominal interest rate equation for that decade?
Answer:
the question is incomplete:
nominal interest rate = 5.07%
real interest rate = ?
inflation rate = 3.45%
approximate real interest rate = 5.07% - 3.45% = 1.62%
real interest rate = [(1 + 5.07%) / (1 + 3.45%)] - 1
real interest rate = (1.0507/1.0345) - 1 = 1.57%
On January 1, 2015, Lake Co. purchased a machine for $1,056,000 and calculated depreciation using the straight-line method, with an estimated useful life of eight years, and no salvage value. On January 1, 2018, Lake determined that the machine had a useful life of six years from the date of acquisition, and a salvage value of $96,000. An accounting change was made in 2018 to reflect these data. The accumulated depreciation for this machine should have a balance at December 31, 2018, of ________. Group of answer choices
Answer:
$584,000
Explanation:
The computation of the accumulated depreciation is shown below:
But before that following calculations need to be determined
Depreciation for 3 years = $1,056,000 ÷ 8 years × 3 years
= $396,000
Now the written down value is
= $1,056,000 - $396,000 - $96,000
= $564,000
For one year it would be
= $564,000 ÷ 3
= $188,000
Now the accumulated depreciation is
= $396,000 + $188,000
= $584,000
The purpose of market research by entrepreneurs is to:
a) Gather data
b) Analyze data
c) Make better decisions
d) None of the above
Submit
Answer:
C Make better decisions
Answer:
the answer is C to make better decisions