Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 2017. Accounts receivable at December 31, 2017 totaled $141,000. Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 2017 to December 31, 2017. The balance in the inventory account decreased by $39,000 over the same period. Required: What is gross profit for the month of December under accrual accounting
Answer:
Gross profit from the month of December is $238000
Explanation:
Question is incomplete but the missing part is:
Cash received from customer during december 2017 - 387,000
Cash paid to supplier for inventory during december 2017 - 131,000
Accrual basis revenues
Particulars Amount $
Cash received from customer 387000
during December 2017
Cash received in December for -139000
November accounts receivable
December sales made on account 141000
collected in January
Accrual basis revenues 389000
Accrual basis expenses
Particulars Amount $
Cash paid to suppliers for inventory 131000
during December 2017
Payments for inventory purchased -19000
and used in November
Inventory purchased in November 39000
but not used in December
Accrual basis expenses 151000
Gross profit from the month of December= Accrual basis revenues - Accrual basis expenses
Gross profit = 389000 - 151000
Gross profit = $238000
During the year, the Senbet Discount Tire Company had gross sales of $1.24 million. The company’s cost of goods sold and selling expenses were $593,000 and $246,000, respectively. The company also had notes payable of $850,000. These notes carried an interest rate of 5 percent. Depreciation was $123,000. The tax rate was 23 percent. a. What was the company’s net income? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.) b. What was the company’s operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
Answer:
Net income= $139,755
Operating cash flow= $346,835
Explanation:
Senbet discount tire company has a gross sale of $1.24 million
The cost of goods sold is $593,000
The selling expense is $246,000
The company has a note payable of $850,000 with an interest rate of 5%
Depreciation is $123,000
Tax rate is 23%
(a) Inorder to calculate the tax expense the first step is to find the interest
Interest= debt×interest rate
= $850,000×5/100
= 850,000×0.05
= 42,500
Therefore, the net income can be calculated as follows
= (sales-cost of goods sold-selling expense-depreciation-interest)(1-tax rate)
=( $593,000-$246,000-$123,000-42,500)(1-0.23)
= 181,500×0.77
= $139,755
(b) Inorder to calculate the operating cash flow the first step is to find the tax expense
Tax expense= (gross sales-cost of goods sold-selling expense-depreciation-interest)× tax
($1,240,000-$593,000-$246,000-$123,000-42,500)×0.23
= $235,500×0.23
= $54,165
Therefore, the operating cash flow can be calculated as follows
= gross sales-cost of goods sold-selling expense-depreciation-tax expense+depreciation
=$1,240,000-$593,000-$246,000-$123,000-$54,165+$123,000
= $346,835
Hence the net income is $139,755 and the operating cash flow is $346,835
Suppose that a baseball player eligible for free agent status signs a contract with a new team that promises to pay him $100,000 more than his current team for each of the next three years. Assuming the discount rate is 6 percent, what is the maximum the current costs of moving could be and still have this investment be worthwhile?
Answer:
Maximum current cost = $267,301.19
Explanation:
The maximum current costs of his moving would be worth of the $100,000 annuity in today's dollars, that is the present value.
The present value of the annuity would be determined as follows:
PV = A × (1- (1+r)^(-n) )/ r
Annual cash flow, n- number of years, r-rate of interest
A- 100,000, r- 6%, n- 3
PV - 100,000 × (1- 1.06^(-3))/0.06
PV = $ 267,301.19
Maximum current cost = $267,301.19
What is the current price for a bond worth $4,000 that has a price quote of 50?
Answer:
$ 2,500 as far as i know.
Explanation:
Suppose the most you would be willing to pay to have a freshly washed car before going out on a date is $8.00. The smallest amount for which you would be willing to wash someone else's car is $5.50. You are going out this evening and your car is dirty. How much economic surplus would you receive from washing it
Answer:
1. The most you would be willing to pay for having a freshly washed car before going out on a
date is $6. The smallest amount for which you would be willing to wash someone else's car is
$3.50. You are going out this evening, and your car is dirty. How much economic surplus
would you receive from washing it?
The economic surplus from washing your dirty car is the benefit you receive from doing so ($6)
minus your cost of doing the job ($3.50), or $2.50.
2. To earn extra money in the summer, you grow tomatoes and sell them at the farmers' market
for 30 cents per pound. By adding compost to your garden, you can increase your yield as
shown in the table below. If compost costs 50 cents per pound and your goal is to make as much
money as possible, how many pounds of compost should you add?
Pounds
of
compost
Pounds
of
tomatoes
Marginal
Cost
($)
Marginal
Benefit
(pounds)
Marginal
Benefit
($)
Net
Benefits
Marginal
Net
Benefits
0 100 ---- 0 --- 0 ---
1 120 0.50 20 6.00 5.50 5.50
2 125 0.50 5 1.50 6.50 1.00
3 128 0.50 3 0.90 6.90 0.40
4 130 0.50 2 0.60 7.00 0.10
5 131 0.50 1 0.30 6.80 - 0.20
6 131.5 0.50 0.5 0.15 6.45 - 0.35
The benefit of adding a pound of compost is the extra revenue you’ll get from the extra tomatoes
that result. The cost of adding a pound of compost is 50 cents. By adding the fourth pound of
compost you’ll get 2 extra pounds of tomatoes, or 60 cents in extra revenue, which more than
covers the 50-cent cost of the extra pound of compost. But adding the fifth pound of compost
gives only 1 extra pound of tomatoes, so the corresponding revenue increase (30 cents) is less than
the cost of the compost. You should add 4 pounds of compost and no more.
3. Residents of your city are charged a fixed weekly fee of $6 for garbage collection. They are
allowed to put out as many cans as they wish. The average household disposes of three cans of
garbage per week under this plan. Now suppose that your city changes to a "tag" system. Each
can of refuse to be collected must have a tag affixed to it. The tags cost $2 each and are not
reusable. What effect do you think the introduction of the tag system will have on the total
quantity of garbage collected in your city? Explain briefly.
In the first case, the cost is $6/week no matter how many cans you put out, so the cost of
disposing of an extra can of garbage is $0. Under the tag system, the cost of putting out an extra
can is $2, regardless of the number of the cans. Since the relevant costs are higher under the tag
system, we would expect this system to reduce the number of cans collected.
Explanation:
Which of the following statements is CORRECT?a. Because of their simplified organization, it is easier for proprietors and partnerships to raise large amounts of outside capital than it is for corporations. b. Bond covenants are an effective way to resolve conflicts between shareholders and managers. c. One advantage to forming a corporation is that the owners of the firm have limited liability. d. Corporations face few regulations and more favorable tax treatment than do proprietorships and partnerships. e. Managers who face the threat of hostile takeovers are less likely to pursue policies that maximize shareholder value compared to managers who do not face the threat of hostile takeovers.
Answer:
c. One advantage to forming a corporation is that the owners of the firm have limited liability.
Explanation:
A company is characterized as a business entity owned by shareholders and regulated by the appointed board of directors bodies. A company is a legal entity that implies it can sue and be taken to court. It can be entered into a contractual agreement, too.
Therefore the correct option is c. as it says that in the corporation the business owners have the limited liability and i.e true statement
Zhao Co. has fixed costs of $403,200. Its single product sells for $183 per unit, and variable costs are $120 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales.
Answer:
Margin of safety in dollars = $658800
Margin of safety percentage = 0.36 or 36%
Explanation:
The margin of safety in dollars is the number of revenue that a business earns in excess of its break even level of revenue. Thus, the formula for the margin of safety in dollars is,
Margin of safety in dollars = Revenue at current sales level - Revenue at break even sales level
We must first determine the level of sales at the break even point.
The break even point in dollars can be calculated as follows,
Break even in dollars = Fixed cost / Contribution margin ratio
Where,
Contribution margin ratio = (Selling price per unit - Variable cost per unit) / Selling price per unit
Break even in dollars = 403200 / [(183 - 120) / 183]
Break even in dollars = $1171200
Margin of safety in dollars = (10000 * 183) - 1171200
Margin of safety in dollars = $658800
Break even point in units = 1171200 / 183 = 6400 units
Margin of safety as a percentage of expected sales is,
Margin of safety percentage = (10000 - 6400) / 10000
Margin of safety percentage = 0.36 or 36%
The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $1.5 million. If it would cost $2 million to finish development and make the product, you go ahead and do so. The most you should pay to complete development is $_______million.
Answer:
You should pay "$3" million to complete the development.
Explanation:
The possibility you've already plunged $5 million is therefore no longer important to either calculation, although this money disappears. All counts now would be the small chance of gaining money. When you are investing around $1 million and are able to produce $3 million in funding, users earn $2 million in gross income, so clients will.You seem entitled to say that perhaps a gross of $3 million has indeed been wasted to the venture, and you really should not even have begun it. That would be real, however, if you ever don't invest about $1 million extra you apparently can't have any profits and total damages will have been $5 million.And therefore what counts has never been the overall income, but the incremental benefit that you will receive. In reality, you'd pay approximately $3 million to feel a sense of achievement, not much more, and towards the bottom, you won't increase income.
When an organization has an annual ceremony to reward the past year’s outstanding employees, this ritual is a manifestation of the organization's culture called a(n) _______. Group of answer choices
Answer:
Espoused value.
Explanation:
The espoused value can be defined as the values expressed on behalf of the organization. For example, the set of practices and procedures adopted by employees of an organization that provide positive results and value for a company.
Therefore, when an organization holds a ceremony to reward outstanding employees of the year, it is manifesting and promoting in the organizational culture the maintenance of moral conduct and corporate values necessary to maintain and enhance positive standards of conduct to achieve organizational success .
The overall economic performance of developing countries is expected to outpace that of the United States over the coming years. A customer that wishes to profit from this should receive which recommendation and accompanying risk disclosures?
A.
The customer should be recommended a special situations fund, as long as the customer is willing to assume regulatory risk and market risk
B.
The customer should be recommended a specialty fund, as long as the customer is willing to assume credit risk and extension risk
C.
The customer should be recommended an emerging markets fund, as long as the customer is willing to assume political risk and exchange rate risk
D.
The customer should be recommended a sector fund, as long as the customer is willing to assume unsystematic risk and market risk
Answer: C. The customer should be recommended an emerging markets fund, as long as the customer is willing to assume political risk and exchange rate risk
Explanation:
In order to take advantage of the opportunity that presents itself from developing countries outpacing that of the US in years to come, the customer should invest in an Emerging Markets fund. This fund invests in securities from the more rapidly developing countries like China and Brazil so the customer will be poised to take advantage of the opportunities offered by this.
However, they should be wary of Exchange rate risks as their currencies are not as strong as the US dollar and can be unstable.
They also need to worry about political instability as quite a lot of developing countries do not have strong democracies and Economic decisions are influenced by political decisions a bit too much.
DSO and accounts receivable Ingraham Inc. currently has $205,000 in accounts receivable, and its days sales outstanding is 71 days. It wants to reduce its DSO to 20 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365- day year.
Answer:
$49,084.51
Explanation:
days of sales outstanding (DSO) = accounts receivable / average daily sales
71 days = $205,000 / (total sales / 365 days)
total sales / 365 days = $205,000 / 71 days
total sales = ($205,000 / 71 days) x 365 days = $1,053,873.24
after the change, annual sales will decrease by 15%:
$1,053,873.24 x (1 - 15%) = $895,792.25
average sales per day = $895,792.25 / 365 = $2,454.23 per day
new DSO = accounts receivable / average sales per day
20 days = accounts receivable / $2,454.23 per day
accounts receivable = $2,454.23 per day x 20 days = $49,084.51
There are several bridges along highway 280 which are free to ride on. This bridge was built and is being maintained by the government... not the "free" market. Let's think about why that is the case... The economic logic of government ownership and having a marginal price of 0 (that is, it is free to cross the bridge) is:
Answer:
The bridge 's owner has a natural monopoly, and the marginal production cost (letting another car drive through it) is close to nil.
Explanation:
Since building several bridges to compete is inefficient, but building one bridge at a lower average cost to customers would be effective. If the private monopolist builds the bridge it can charge customers exceptionally high prices.
There is a high fixed cost involved with constructing a bridge. Hence constructing a bridge is a mere privilege. Furthermore, there is no extra cost to allow another car to cross the bridge. It means that the marginal cost is zero or closer.
At the organizational level, the Team Leadership Model (TLM) suggests that leaders examine the ________ that may be impacting their team.
Answer:
Reward systems
Explanation:
The Team Leadership is a model that provides a Working environment where members are accountable to the coach and also to the team as a whole.
Team-based reward systems can help increase motivation and collaboration among members of a team, this would help the team goals to be better integrated with better objectives and also serve as a way of getting the whole team to improve
You often find that employees choose a health care plan without carefully considering their options. In fact, sometimes employees realize they are spending too much for health care or that they lack health care options, and they end up blaming you for not informing them sufficiently of their options ahead of time. You want employees to attend the fair and take the time to carefully weigh their options. Which of the following statements is most likely to attract employees to the fair to do so?
A. This presentation helps you choose which of the five health insurance options works best for your family.
B. This presentation discusses the relative benefits and costs of each health care option.
C. In this presentation, we provide you with the answers you need about the five health insurance options.
Answer: This presentation helps you choose which of the five health insurance options works best for your family.
Explanation:
From the question, we are informed that employees usually choose a health care plan without carefully considering their options and they end up blaming someone else for not informing them sufficiently of their options ahead of time.
Due to this reason, the person want the employees to attend a fair and take the time to carefully weigh their options. Of the options given, the correct answer is that "this presentation helps you choose which of the five health insurance options works best for your family".
Emphasis is been placed on choice as the employees can choose what works best for them. A simple language is also used to pass the message across.
Transactions for Jayne Company for the month of June are presented below.
June
1 Issues common stock to investors in exchange for $5,000 cash.
2 Buys equipment on account for $1,100.
3 Pays $740 to landlord for June rent.
12 Sends Wil Wheaton a bill for $700 after completing welding work.
Identify the accounts to be debited and credited for each transaction.
Account Debited Account Credited
june 1
june 2
june 3
june 12
Answer:
June 1 , common stocks are issued
Dr Cash 5,000
Cr Common stock 5,000
June 2 , equipment purchased on account
Dr Equipment 1,100
Cr Accounts payable 1,100
June 3 , monthly rent paid
Dr Rent expense 740
Cr Cash 740
June 12, service revenue
Dr Accounts receivable 700
Cr Service revenue 700
A stock has a beta of 1.29 and an expected return of 11.57 percent. If the risk-free rate is 4.4 percent, what is the stock's reward-to-risk ratio
Answer:
5.56%
Explanation:
the reward to risk ratio of this stock is:
reward to risk = (expected return - risk free rate) / beta
reward to risk = (11.57% - 4.4%) / 1.29 = 5.56%
The reward to risk ratio shows the investors how much extra money they should expect to earn for every dollar that they invest in a certain stock due to the stock's risk. A stock with a beta of 1 only carries the market risk, but since this stock's beta is 1.29, its risk is higher.
Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor. This redistribution of wealth is a. is more efficient and more equal for society. b. is more efficient but less equal for society. c. is more equal but less efficient for society. is less equal and less efficient for society.
Bridget drinks three soda during a particular day. The marginal benefits she enjoys from drinking the third soda. a. can be thought of as the total benefit Bridget enjoys by drinking three sodas minus the total benefit she would have enjoyed by drinking just two sodas. b. determines Bridget's willingness to pay for the third soda. c. is likely different from the marginal benefit provided to Bridget by the second soda.
Answer:
1. c. is more equal but less efficient for society
2. All of the above
Explanation:
1. When taxes reduce the income going to the wealthy and instead redistributes it to the poorer members of society, it increases equality because the poorer members will have some form of income to bridge the gap between them and the rich. However, this may not be good for the efficiency of the society. This is because increasing the income on the wealthier will both reduce the income they have for investment as well as their willingness to work knowing that they will lose some of their rewards to taxes. These 2 things will reduce the output of the society thereby hurting its efficiency.
2. Marginal benefit in terms of production for instance is the extra benefit gained from producing one extra good. It can therefore be calculated by subtracting the total benefit of all the other produced goods from the total benefits of all produced goods including the additional one. In the same way, the marginal benefit of Bridget drinking the third soda can be thought of as the total benefit Bridget enjoys by drinking three sodas minus the total benefit she would have enjoyed by drinking just two sodas.
The marginal benefit that Bridget will get from drinking the third soda will indeed determine what she will pay for it. If she feels that it costs more to her than what she will benefit, she will not buy.
As more of a good is consumed, the marginal benefit decreases in general and is almost never the same. For Bridget therefore, the marginal benefit of the third soda is likely different from the marginal benefit provided to Bridget by the second soda.
Prescott Football Manufacturing had the following operating results for 2019: sales = $30,174; cost of goods sold = $21,740; depreciation expense = $3,512; interest expense = $544; dividends paid = $849. At the beginning of the year, net fixed assets were $20,046, current assets were $3,029, and current liabilities were $3,776. At the end of the year, net fixed assets were $23,077, current assets were $4,447, and current liabilities were $3,077. The tax rate for 2019 was 21 percent.
a. What is net income for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Net income $b. What is the operating cash flow for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Operating cash flow $c. What is the cash flow from assets for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow from assets $Assume no new debt was issued during the year.d. What is the cash flow to creditors for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow to creditors $e. What is the cash flow to stockholders for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow to stockholders $
Answer:
Prescott Football Manufacturing
a. Net Income for 2019:
2019: sales = $30,174
cost of goods sold = $21,740
depreciation expense = $3,512
interest expense = $544
Pre-tax Income = $4,378
21% Tax = 919-38
Net Income = $3,459
b) Operating cash flow
Net Income = $3,459
Non-cash:
Depreciation Expense 3512
Increase in current assets -1,418
Decrease in current liabilities -699
Net operating cash flow $4,854
c) Cash flow from assets:
Increase in Assets -$3,031`
d) Cash flow to creditors:
Decrease in liabilities -$699
e) Cash flows to stockholders:
Dividends paid = -$849
Explanation:
a) 2019: sales = $30,174
cost of goods sold = $21,740
depreciation expense = $3,512
interest expense = $544
Pre-tax Income = $4,378
21% Tax = 919
Net Income = $3,459
dividends paid = $849.
b) Balance Sheet:
At the beginning of the year,
net fixed assets were $20,046,
current assets were $3,029, and
current liabilities were $3,776.
c) Balance at the end of the year,
At the end of the year,
net fixed assets were $23,077,
current assets were $4,447, and
current liabilities were $3,077.
Prescott Football Manufacturing
Part A:
Net Income for 2016:
Sales = $30,174 Cost of goods sold = $21,740 Depreciation expense = $3,512 Interest expense = $544 Pre-tax Income = $4,378 21% Tax = 919-38Net Income = $3,459
Working Notes:
sales = $30,174 cost of goods sold = $21,740 depreciation expense = $3,512 interest expense = $544 Pre-tax Income = $4,378 21% Tax = 919 Net Income = $3,459 dividends paid = $849.Part B:
Operating cash flow
Net Income = $3,459Non-cash:
Depreciation Expense 3512 Increase in current assets -1,418 Decrease in current liabilities -699 Net operating cash flow $4,854
Working Notes :
At the beginning of the year, Net fixed assets were $20,046, Current assets were $3,029, Current liabilities were $3,776.Part C:
Cash flow from assets:
Increase in Assets -$3,031`
Working Notes :
Balance at the end of the year, At the end of the year, net fixed assets were $23,077, current assets were $4,447, current liabilities were $3,077.
Part D :
Cash flow to creditors:
Decrease in liabilities = -$699
Part E :
Cash flows to stockholders:
Dividends paid =-$849
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Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:
The question is incomplete. Here is the complete question.
The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:______
Answer:
$11.5
Explanation:
The data that was gotten from Keller company stockholders equity account include:
Amount shares in common stock is 20,000 shares
The number of issued shares is 10,000
Number of outstanding shares is 9,000
The excess paid-in capital is $100,000
The common stock is 50,000
The retained earnings is 25,000
Treasury stock is 11,500
The first step is to calculate the amount of shares that was acquired in the treasury stock
= Number of issued shares-number of outstanding shares
= 10,000-9,000
= 1,000
Therefore, the cost per share of the stock in the treasury can be calculated as follows
= Treasury stock value/amount of shares acquired
= 11,500/1,000
= 11.5
Hence the cost per share of the treasury stock is $11.5
The rate established prior to the beginning of a period that uses estimated overhead and an allocation factor such as estimated direct labor, and that is used to assign overhead cost to jobs, is the:
Answer:
This is the Predetermined overhead rate
Explanation:
The predetermined overhead rate assigns a particular amount of manufacturing overhead to each direct labor or machine hour. This helps businesses allocate resources and also set pricing. This computation is usually done at the beginning of each period.
To calculate this, we divide the estimate of the manufacturing overhead cost total by the estimated number of machine hours. It is used to assign overhead cost to jobs.
On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 24,000, $15 par, common shares. The market price of the common stock is $44 on this date.
Requried:
a. Record the necessary journal entries assuming a small (10%) stock dividend
b. Record the stock dividend assuming a small (10%) stock dividend.
c. Record the stock dividend assuming a large (100%) stock dividend.
d. Record the stock dividend assuming a 2-for-1 stock split.
Answer:
September 01
Dr Stock dividends 105,600
Cr Common stock 36,000
Cr Additional paidin capital 69,600
September 01
Dr Stock dividends 360,000
Cr Common stock 360,000
September 01 No journal entry
Explanation:
1. 2. & 3. Preparation to Record the journal entries assuming a small (10%) stock dividend
September 1: Stock dividends (24,000 × 10% × $44) = 105,600
September 1: Common stock (24,000 × 10% × $15) = $36,000
1. 2. & 3. Prepartion to Record the journal entries assuming a small (100%) stock dividend,
September 1: Stock dividends (24,000 shares × $15×100%) =$360,000
To Record the stock dividend assuming a 2-for-1 stock split.
No journal entry required
Hence,
Colorado Outfitters, Inc. Journal entries
September 01
Dr Stock dividends 105,600
Cr Common stock 36,000
Cr Additional paidin capital 69,600
(105,600-36,000)
September 01
Dr Stock dividends 360,000
Cr Common stock 360,000
September 01 No journal entry
Dartford Company reported the following financial data for one of its divisions for the year; average investment center total assets of $4,100,000; investment center income $700,000; a target income of 12% of average invested assets. The residual income for the division is:
Answer:
$208,000
Explanation:
Calculation for Dartford Company residual income
Using this formula
Residual income=Investment center income -(Target income percentage of average invested assets ×Average investment center total assets)
Let plug in the formula
Residual income =$700,000-(12%×$4,100,000)
Residual income =$700,000 - $492,000
Residual income =$208,000
Therefore The residual income for the division is: $208,000
Matthews Fender, which uses a standard cost system, manufactured 20 comma 000 boat fenders during 2018, using 143 comma 000 square feet of extruded vinyl purchased at $ 1.30 per square foot. Production required 400 direct labor hours that cost $ 16.00 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $ 1.35 per square foot. The labor standard was 0.028 direct labor hour per fender, at a standard cost of $ 15.00 per hour. Complete the costs and efficiency variances for Direct materials and direct labor. Does the pattern of variances suggest Pro Fender's managers have been making trade-offs? Explain.
Answer:
Its hard to ans
Explanation:
Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchases $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the payment on August 16 is:
Answer:
The journal entries for the whole transaction are:
August 7, 202x, merchandise purchased on account, terms 1/10, n/30
Dr Merchandise inventory 9,750
Cr Accounts payable 9,750
August 11, 202x, partial return of purchased merchandise
Dr Accounts payable 1,500
Cr Merchandise inventory 1,500
August 16, 202x, invoice is paid within discount period
Dr Accounts payable 8,250
Cr Cash 8,167.50
Cr Purchase discounts 82.50
10) Financial intermediaries can substantially reduce transaction costs per dollar of transactions
because their large size allows them to take advantage of
Answer: D) economies of scale.
Explanation:
Economies of scale refers to when an entity is able to reduce its total costs as quantities of the good causing the costs increase.
Financial Intermediaries such as Commercial banks, Mutual funds, Investment banks etcetera have a lot of funds available for trade which they use to execute large trades. As a result, the costs on average are lower or them per transaction as opposed to traders executing with lower volumes. For example, when purchasing shares they will be able to negotiate better fees with stockbrokers because they are buying a lot of shares as opposed a single buyer trading.
Home Depot entered fiscal 2014 with a total capitalization of $27,213 million. In 2014, debt investors received interest income of $830 million. Net income to shareholders was $6,345 million. (Assume a tax rate of 35%.) Calculate the economic value added assuming its cost of capital is 10%.
Answer:
Economic value added=$4,163.20
Explanation:
Calculatation for the economic value added assuming its cost of capital is 10 percent
The first step is to find the After-tax operating income using this formula
After-tax operating income = (1 - tax rate) * Interest expense + Net income
Where,
Tax rate=35%
Interest expense =$830
Net income=$6,345
Let plug in the formula
After-tax operating income=(1 - .35) *$830 + $6,345
After-tax operating income=0.65*$830×$6,345
After-tax operating income= $539.50+$6,345
After-tax operating income=$6,884.50
The next step is to find the Economic value added using this formula
Economic value added= Ater-tax operating income - (Cost of capital * Total capitalization)
Where,
Ater-tax operating income =$6,884.50
Cost of capital =10%
Total capitalization=$27,213
Let plug in the formula
Economic value added=$6,884.50 - (.10 * $27,213)
Economic value added=$6,884.50-$2,721.3
Economic value added=$4,163.20
Therefore the Economic value added assuming its cost of capital is 10% will be $4,163.20
Aloha Inc. has 8 percent coupon bonds on the market that have 11 years left to maturity. If the YTM on these bonds is 10.22 percent, what is the current bond price
Answer:
The answer is $85.73
Explanation:
N(Number of periods) = 11years
I/Y(Yield to maturity) = 10.22 percent
PV(present value or market price) = ?
PMT( coupon payment) = $8
FV( Future value or par value) = $10
We are using a Financial calculator for this.
N= 11; I/Y = 10.22 ; PMT = 8; FV= $100; CPT PV= -85.73
Therefore, the market price of the bond is $85.73
The financial statements of Sunland Manufacturing Company report net sales of $1226400 and accounts receivable of $57000 and $111000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days
Answer:
2.8 billon
Explanation:
cheating
You Save Bank has a unique account. If you deposit $8,000 today, the bank will pay you an annual interest rate of 3 percent for 5 years, 3.6 percent for 4 years, and 4.3 percent for 8 years. How much will you have in your account in 17 years
Answer:
Total money after 17 years = $14962
Explanation:
Given present value or mount deposited today = $8000
Annual interest rate for 5 years = 3 %
Annual interest rate for 4 years = 3.6 %
Annual interest rate for 8 years = 4.3 %
Now we have to calculate the total amount after 17 years. Below is the calculation.
[tex]Total \ amount = 8000(1 + 0.03)^{5} (1+ 0.036) ^{4} (1+ 0.043 ) ^{8} \\Total \ amount = $14962[/tex]
The vice-president of marketing of G Street Fabrics has been told to invest the company's advertising dollars wisely. Which of the following measures could be used to compare the cost of its advertising expenditures for different media?a. Reachb. Ratingc. GRPsd. CPMe. frequency
Answer: d. CPM
Explanation:
CPM is a acronym for cost per thousand impressions. This is a term that is utilized in advertising either by online advertising, traditional advertising media, and marketing that are related to web traffic and it
refers to cost of traditional advertising, email advertising or internet marketing campaigns whereby the advertisers will have to pay every time an advertisement is displayed.
It is a measurement of the amount of money a company will have to pay in order to get across to its listeners, viewers, readers, or visitors. Since the vice-president of marketing of G Street Fabrics has been told to invest the company's advertising dollars wisely, he can use the CPM.