Answer:
Compound interest
Explanation:
Compound interest is a method of measuring interest by which interest is applied to the principal amount over time. You not only earn interest on the principal amount but also collect interest on your interest.
This tends to happen because you save your interest, rather than withdraw it
Hence, the compound interest is the correct answer
Ann transferred land worth $200,000 with a tax basis of $40,000 to Brown Corporation, an existing entity, for 100 shares of its stock. Brown Corporation has two other shareholders, Bill and Bob, each of whom holds 100 shares. With respect to the transfer:
Answer:
Ann has a bias of $200,000 in her 100 shares in Brown Corporation.
Explanation:
The full question is as follows;
Ann transferred land worth $200,000 with a tax basis of $40,000, to Brown corporation, an existing entity, for 100 shares of its stock. Brown corporation has two other shareholders, Bill and Bob, each of whom holds 100 shares. With respect to the transfer: a. Ann has no recognized gain. b. Brown Corporation has a basis of $160,000 in the land. c. Ann has a bias of $200,000 in her 100 shares in Brown Corporation. d. Ann has a basis of $40,000 in her 100 shares in Brown Corporation. e. none of the above.
Answer
Ann has a bias of $200,000 in her 100 shares in Brown Corporation.
Explanation
From the question, we can see that Ann traded 200,000 worth of asset for 100 shares.
What this means is that the basis of her shares will be 200,000
We can also see that a capital gain of 160,000 is recognized. The capital gain is recognized because the land which was traded has a basis of 40,000 for 200,000. This makes it taxable due to the capital gain.
Hence, the land will enter Brown Corporation as 200,000 and not 160,000
Carpenters, Inc., a manufacturing company, acquired equipment on January 1, 2017 for $ 520 comma 000. Estimated useful life of the equipment was seven years and the estimated residual value was $ 20 comma 000. On January 1, 2020, after using the equipment for three years, the total estimated useful life has been revised to nine total years. Residual value remains unchanged. The company uses the straightminusline method of depreciation. Calculate depreciation expense for 2020. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Answer:
Annual depreciation= $47,618
Explanation:
Giving the following information:
Purchasing price= $520,000
Useful life= 7 years
Residual value= $20,000
New useful life= 9 years
First, we need to determine the annual depreciation and accumulated depreciation before January 2020.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (520,000 - 20,000)/7= 71,429
Accumulate depreciation= 71,429*3= $214,287
New annual depreciation:
Book value= 520,000 - 214,287= 305,713
Annual depreciation= (305,713 - 20,000) / 6
Annual depreciation= $47,618
n order to run the business Economan gave up a chance to earn $110,000 in a job at the local Space Agency. In addition, he estimates that instead of investing in his business he could have put money in the bank and earned $5,000 interest. A) What is Economan’s accounting profit?
Answer: $100,000
Explanation:
His accounting profit is his Revenue less his Explicit Costs. Explicit costs are those costs that have an actual payment/ physical cash attached to them.
Accounting Profit = Revenue - Explicit Costs
= 230,000 - ( 10,000 + 100,000 + 20,000)
= 230,000 - 130,000
= $100,000
McLin, Inc., is a calendar year S corporation. Its AAA balance is zero. Determine the tax aspects of the following transactions. If an amount is zero, enter "0". a. McLin holds $90,000 of AEP. Tobias, the sole shareholder, has an adjusted basis of $80,000 in his stock. Tobias is paid a $90,000 salary. Ignore the 20% QBID.
Answer:
$10,000
Explanation:
Given that:
McLin holds $90,000 of AEP, this implies what is salary is made of;
Tobias, the sole shareholder, has an adjusted basis of $80,000 in his stock.
Tobias is paid a $90,000 salary income.
Ignore the 20% QBID
We are to determine the tax aspects of the transactions
Since the company receives a $90000 for salary expense. Thus Tobias basis is zero, then :
The tax aspect of the transaction is : ($90000 - $80000)
The tax aspect of the transaction = $10,000
Which one of the following reports helps track past due bills and bills that are due shortly? Multiple Choice Accounts Payable Aging Summary Customer Aging Summary Accounts Receivable Aging Summary Vendor Aging Report
Answer:
Accounts Payable Aging Summary
Explanation:
The account payable aging summary refers to the summary of the past due bills and the bills which are due shortly. It shows the amount which we have to pay in the prescribed time limit i.e 30 days 45 days etc
Therefore the reports which is needed to track the past due bills and that are due shortly we called as the account payable aging summary
Hence, the first option is correct
What is a mission statement?
In Sheridan Company, the Cutting Department had beginning work in process of 8800 units, transferred out 25300 units, and had an ending work in process of 5000 units. How many units were started by Sheridan during the month?
Answer:
The units were started by Sheridan during the month is 21500 units
Explanation:
The units started in the month can be derived from the below formula:
units started =units completed-beginning work-in process+ending work-in process
units completed and transferred out=25300 units
beginning work-in process is 8800 units
ending work-in process is 5000 units
units started=25300 units-8800 units+5000 units=21500 units
Jewelcorp just began trading securities. The company is a closely-held corporation that is not trading stock on a national securities exchange. It has several dozen shareholders and $9 million in assets. Which of the following is true concerning the company’s requirement to report to the SEC?Not required to report information to the SEC. Required to report major business developments and must file annual and quarterly financial reports. Must file annual and quarterly financial reports Requirement to file depends on the company’s assets and shareholder base.
Answer:
Jewelcorp
Requirement to report to the SEC:
Not required to report information to the SEC.
Explanation:
Jewelcorp is not required to report information to the SEC. It is only publicly traded companies that are required to file their financial reports with the SEC.
The SEC Act of 1934 does not require private companies to file financial reports with the Security Exchange Commission. However, a private company can be required to file financial reports with SEC if it has over 500 common stockholders and $10 million in assets, which Jewelcorp does not possess.
Chloe has her own office where she generates investment advice for companies. She is compensated for her advice. Which of the following is false?A. Chloe does not have to be a registered adviser if all of her clients are in the same state as her office.B. Chloe does have to be a registered adviser even if she only advises for one company. C. Chloe does not have to be a registered adviser if she doesn’t have authority to make investment choices for her clients. D. Chloe does have to be a registered adviser even if she only publishes informational analyses and reports concerning specific investments.
Assuming all other factors remain constant, if variable cost per unit increases, then the break-even point will:
Answer:
The break-even point in units increases.
Explanation:
The break-even point in units is the number of units required to cover for the fixed costs. In this sales level, the net income is zero.
To calculate the break-even point in units, you need to use the following formula:
Break-even point in units= fixed costs/ (selling price - unitary variable cost)
If the unitary variable cost increases, the contribution margin per unit decreases. Therefore, now you need to sell more units to cover for the fixed costs. The break-even point in units increases.
_____ planning is short-range, detailed planning that is based on long-range planning. It typically has a time frame that is less than one year long. Tactical Strategic Hands-on Procedural
Answer: Tactical planning
Explanation:
In tactical planning, a company's strategic plan is planned and ways are generated to achive the objectives of a company by using short-term actions.
Tactical plans are required to help teams to accomplish their goals by utilizing the steps that are clearly defined through short term outcomes and it is usually less than a year.
At the end of 2010, Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,850. The account had an unadjusted credit balance of $12,000 at that time.
Required:
Prepare journal entries for each of the following.
A. The appropriate bad debt adjustment was recorded.
B. Later, an account receivable for $1,000 was determined to be uncollectible and was written off.
Answer:
A.Dr Bad Debt Expense 7,850
Cr Allowance for Doubtful Accounts 7,850
B.Dr Allowance for Doubtful Accounts 1,000
Cr Accounts Receivable 1,000
Explanation:
Preparation of the Journal entries for Blackhorse Productions,
A.Since we were that the company used the aging of accounts receivable method to help them estimate that Allowance for Doubtful Accounts should be the amount of $19,850 in which the account had an unadjusted credit balance of the amount $12,000 this means that the transaction will be recorded as:
Dr Bad Debt Expense 7,850
Cr Allowance for Doubtful Accounts 7,850
[19,850 - 12,000]
B. Since the company later had an account receivable for the amount of $1,000 whichb was determined to be uncollectible and was written off this means that the transaction will be recorded as:
Dr Allowance for Doubtful Accounts 1,000
Cr Accounts Receivable 1,000
Mrs. Simpson is saving for her retirement. If she makes a payment of $1,000 at the end of each month for 15 years and earns a rate of 5.25% compounded 12 times per year, how much will she have in her retirement account when she is ready to retire
Answer:
$272,942.36
Explanation:
The formula for calculating future value = A (B / r)
B = [(1 + r) ^mn] - 1
FV = Future value
P = Present value
R = interest rate
m = number of compounding per month
N = number of years = 0,0525 /12 = 0,004375
$1,000 (1.004375)^180 - 1 / 0,004375 =$272,942.36
Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Net income $ 87,100
Depreciation expense 13,800
Gain on sale of land 6,500
Increase in merchandise inventory 3,850
Increase in accounts payable 7,950
Answer:
The answer is $98,500
Explanation:
There are two ways to cash provided or used by operating activities - Direct method and indirect method. In direct method, the first line item is Net income or net loss.
Net income------------------------ $87,100
Depreciation expense---------- 13,800
Gain on sale of land------------ ($6,500)
Increase in merchandise inventory-------------------------------------------------($3,850)
Increase in accounts payable $7,950
Net cash provided or used by operating activities---------------$98,500
Harvey quit his job at State University, where he earned $45,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 for each unit. Of the $75 per unit, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. The explicit costs of Harvey's firm in the first year were
Answer:
The explicit costs of Harvey's firm in the first year were $605,000
Explanation:
According to the given data we have the following:
In the first year, the firm sold 11,000 units of software
$55 goes for the costs of production, packaging, marketing, employee wages and benefits
Therefore, in order to calculate explicit costs of Harvey's firm in the first year we would have to make the following calculation:
explicit costs of Harvey's firm= units of software sold*costs of production, packaging, marketing, employee wages and benefits
explicit costs of Harvey's firm=11,000*$55
explicit costs of Harvey's firm=$605,000
The explicit costs of Harvey's firm in the first year were $605,000
If a corporation purchases a lot and building and subsequently tears down the building and uses the property as a parking lot, the proper accounting treatment of the cost of the building would depend on
Answer: the intention of management for the property when the building was acquired.
Explanation:
From the question, we are informed that if a corporation buys a lot and building and then tears down the building and then uses the property as a parking lot.
It should be noted that based on the above situation, the proper accounting treatment of the cost of the building would depend on the management's intention regarding the property when they bought the building.
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
Balance Sheet (Millions of $)
Assets 2010
Cash and securities $1,290
Accounts receivable 9,890
Inventories 13,760
Total current assets $24,940
Net plant and equipment $18,060
Total assets $43,000
Liabilities and Equity
Accounts payable $8,170
Notes payable 6,020
Accruals 4,730
Total current liabilities $18,920
Long-term bonds $8,815
Total debt $27,735
Common stock $5,805
Retained earnings 9,460
Total common equity $15,265
Total liabilities and equity $43,000
Income Statement (Millions of $) 2010
Net sales $51,600
Operating costs except depreciation 48,246
Depreciation 903
Earnings bef interest and taxes (EBIT) $2,451
Less interest 927
Earnings before taxes (EBT) $1,524
Taxes 533
Net income $990
Other data:
Shares outstanding (millions) 500.00
Common dividends (millions of $) $346.67
Int rate on notes payable & L-T bonds 6.25%
Federal plus state income tax rate 35%
Year-end stock price $23.77
____What is the firm's current ratio?
____What is the firm's quick ratio?
___ What is the firm's days sales outstanding? Assume a 365-day year for this calculation.
___What is the firm's total assets turnover?
___What is the firm's inventory turnover ratio?
___What is the firm's TIE?
___What is the firm's debt/assets ratio?
___What is the firm's ROA?
___What is the firm's ROE?
Answer:
1. Current ratio = Current Asset / Current Liability
= 24,940 / 18,920
= 1.32
2. Quick ratio = (Current Asset-inventory) / CL
= (24,940-13,760)/18,920
= 0.591
3. Days sales outstanding = (Avg AR / Sales) * 365
= 9,890/51,600 * 365
= 70.0
4. Total assets turnover = Sales/Total assets
= 51,600 / 43,000
= 1.2
5. inventory turnover ratio = Cost of Goods Sold / Average inventory
= 48,246 / 13,760
= 3.51
6. TIE = EBIT / Interest Expense
= 2,451/927
= 2.64
7. Debt/assets ratio = Total debt/Total asset
= 43,000/27,735
= 1.55
8. ROA = Net income/Total asset
= 990/43,000
= 0.0230
9. ROE = Net income/Total equity
= 990/15,265
= 0.0649
Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?a. Depreciation expense.b. A loss on the sale of equipment.c. Dividends declared and paid.d. Gain on sale of land.
Answer:
d. Gain on sale of land
Explanation:
When using the indirect method in calculating net cash flow from operating activities, the net income is adjusted by the following items :
Non-Cash flow items included in net incomeChanges in Working Capital items in net income.From the choices given only gain from sale on land which is an income, has to be removed from net income to reach a cash flow figure.
When a price ceiling is in effect:_______
a. there is no competition for goods.
b. demanders compete for goods in short supply by accepting reductions in quality.
c. suppliers compete for customers by inefficiently raising quality levels.
d. suppliers have an incentive to provide really good customer service.
Answer:
i got answer c
(i took the test)
Consider the following conditions for an item used in the Hess Company's manufacturing process:
On-hand inventory: 40 units
Open orders (scheduled receipts): 100 units
Backorders: 60 units
Required:
What is Hess's inventory position for this item?
Answer: 80 units.
Explanation:
Hess's inventory position for this item refers to how much inventory is on order in addition to how much inventory has been ordered. There will usually be backorders and those will need to be accounted for as well.
The Inventory Position for this item can be calculated with;
Inventory Position = Open order ( scheduled receipts) + On hand inventory - Back-orders
Inventory Position = 100 + 40 - 60
Inventory Position = 80 units.
Acme Manufacturing Corporation pays an annual dividend rate of 11.40% on its preferred stock that currently returns 15.28% and has a par value of $100.00 per share. What is the value of Acme’s preferred stock?
Answer:
The value of Acme’s preferred stock is $74.61
Explanation:
Dividend = 11.40% * $100
Dividend = $11 .40
Return =
Value of stock = Dividend / Return
Value of preferred stock = $11.40 / 15.28%
Value of preferred stock = $74.60732
Value of preferred stock = $74.61
A line of credit can be either a formal or an informal agreement between a borrower and a bank regarding the maximum amount of credit the bank will extend to the borrower during some future period, assuming the borrower maintains its financial strength.A. True
B. False
Answer:
A. True
Explanation:
The line credit is a loan in which the limit is set by the bank. It can be in formal or an informal agreement which is done between the financial institution and borrower.
In this, the time period is mentioned at which the borrower returned back the money also the borrower paid the interest to the bank it also maintained the financial position of the borrower
Hence, the given statement is true
Voltanis Corp. has preferred stock outstanding that will pay an annual dividend of $3.81 every year in perpetuity. If the stock currently sells for $98.31 per share, what is the required return
Answer:
3.9%
Explanation:
Annual dividend = $3.81
Current stock = $98.31 per share
Required return is the return on the investment which has been made by the shareholders of the company.
The Required return is calculated by the using the formula below:
Expected dividend per share divided by the Price per share
= 3.81 divided by 98.31
= 0.03875 x 100
= 3.9% after rounding up
The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company's financial condition and performance. Cute Camel Woodcraft Company is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. Cute Camel Woodcraft CompanyBalance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Cash and equivalents Accounts rece vable Inventories Total current assets Net fixed assets Net plant and equipment Current liabilities: $2,767 Accounts payable $0 176 996 $0 1,266 3,712 8,437 1,013 Accruals 2,970 Notes payable $6,750 Total current liabilities 937 $937 2,813 $3,750 Long-term debt 3,515 8,250 Total debt $4,687 Common equity: Common stock Retained earnings 9,141 7,313 3,937 Common stock Retained earnings Total common equity 9,141 7,313 Y 3,937 11,250 $15,000 $14,063 Total assets $18,750 15,000 Total liabilities and equity $18,750 Given the information in the preceding balance sheet-and assuming that Cute Camel Woodcraft Company has 50 million shares of common stock outstanding-read each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet.
Cute Camel's pool of relatively liquid assets, which are available to support the company's current and future sales, decreased from Year 1 to Year 2
This statement is,_________ because:
A) Cute Camel's total current asset balance actually increased from $6,750 million to $8,437 million between Year 1 and Year 2
B) Cute Camel's total current liabilities balance decreased by $1,687 mililion between Year 1 and Year 2
C) Cute Camel's total current liabilities balance increased from $1,013 million to $1,266 million between Year 1 and Year 2
Answer:
1. Year 2 Cash and Cash Equivalents = Current Assets - Accounts Receivable - Inventories
= 8,437 - 1,266 - 3,712
= $3,459
2. Year 2 Net Plant & equipment = Total assets - Total current assets
= $18,750 - 8,437
= $10,313
3. Year 2 Total current liability = Accruals + Notes Payable
= $176 + 996
= $1,172
4. Year 2 Retained earnings = Total Common Equity - Common Stock
= $14,063 - 9,141
= $4,922
5. This statement is False because:
A) Cute Camel's total current asset balance actually increased from $6,750 million to $8,437 million between Year 1 and Year 2
Current Assets are a pool of relatively liquid assets, which are available to support the company's current and future sales and they increased from Year 1 to 2.
Snapshot of balance sheet.
The balance sheet is a financial and accounting system the provides a summary of the financial conditions, that is balance of the individual and the organization. May be made for sole proprietorship or partnership.
The answer to the statement is cute carmel total C.A increased between 1 and 2 year.
The balance sheet gives us information regarding the company. Both th investors and the analyst of the cute Carmel woodcraft company use it for accessing their performance.The sheet is made for the first and the second year basis. Year 2 the Cash and Cash Equivalents = Current Assets - Accounts Receivable - Inventories. Hence equals $3,459Next the both years Net Plant & equipment = Total assets - Total current assets Thus is $10,313. Thus Total CL = Accruals + N.Payable = $1,172. A 2 Retained earnings = Total Common Equity - Common Stock = $4,922.Hence the option A is correct.
Learn more about the balance sheet.
brainly.com/question/16776658.
Regarding income taxes, which do you think is more important (and why)-- the average tax rate that a firm pays for the marginal tax rate the firm is paying?
Answer:
average tax rate
Explanation:
Based on these two tax rates I would say that the more important of the two is average tax rate. This is because the average tax rate is the total taxes you have paid divided by your total income. This therefore will always be less than the marginal tax rate because the this tax rate is divided by tax brackets which since the average tax rate is specific it will never reach the limit of the tax bracket making it less than the marginal tax rate.
Select the most appropriate answer about bringing components from other continents.
a. It potentially results in better products for the customer.
b. It never affects innovation of the final product.
c.It has no impact on the production lines in the home country.
d. It always lowers the quality of the final product.
e. It always increases the cost of the final product.
Answer:
A. It potentially results in better products for the customer.
Explanation:
When components for the production of a good are imported from other continent, such could potentially results in better products for the customer because most often than not, the exporting country has superior knowledge base in terms of manufacturing these component parts which can be utilized by the importing country.
Moreover, companies import components for various reasons; either to reduce or save cost or they found superior materials somewhere else . Where they found superior materials in in other continent, then the chances of making good or better product is high because of these superior components.
Also, one of the gains in globalization is that one can source for materials or components in other continent for products that can be made locally with high quality and value.
Assume that Pope Enterprises held a $10,000, 10 percent, six-month note signed by Mary Drew. On December, 1, 2015, the maturity date, Drew dishonored the note. At this point, Drew owes a total of $10,500, which is comprised of the principal of $10,000 plus interest in the amount of $500 (or $10,000 x 10% x 6/12). Prepare the December 1 entry for Pope by selecting the account names and dollar amounts from the drop-down menus. If there are multiple debits or multiple credits, please enter the account titles in alphabetical order.
Answer:
Prepare the December 1 entry for Pope:
Dr Accounts receivable 10,500
Cr Notes receivable 10,000
Cr Interest receivable 500
Since the note was dishonored, it must be turned into an account receivable. The new account receivable must include the accrued interests on the note.
Placker Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $155,000, variable manufacturing overhead of $3.40 per machine-hour, and 50,000 machine-hours. Recently, Job A881 was completed with the following characteristics: Total machine-hours 100 Direct materials $ 645 Direct labor cost $2,300 The total job cost for Job A881 is closest to:
Answer:
Total cost of job A881= $9,445
Explanation:
The total cost of Job 881 would be the sum of the direct cost and the manufacturing overhead
Total cost = Direct material + direct labour + variable manufacturing overhead + Fixed Overhead
Direct material and labour represent cost of material and labour incurred wholly and directly for Job A881
The overhead absorption rate(OAR) would be used to charge fixed manufacturing overhead to Job A881
The absorbed overhead = OAR × actual machine hours used for Job A881
OAR = budgeted overhead ÷ budgeted machine hours
OAR = $155,000 ÷ 50,000 machine hours = $3.1 per machine hour
Fixed manufacturing overhead absorbed = $3.1 × 100 = $3,100
Variable manufacturing overhead = $3.40 × 100 = $3,400
Total cost of job A881= 645 + 2,300 + 3,400 + 3,100 = $9,445
Total cost of job A881= $9,445
Alden Corp. has the following balances as of December 31, 2019:Total Assets $90,000Total Liabilities 60,000Total Equity 30,000Calculate the debt to equity ratio. A. 0.64.B. 0.92.C. 1.56.D. 256.
Answer:
2.00
Explanation:
Calculation of the debt to equity ratio
Using this formula
Debt to equity ratio= Total liabilities/Total Shareholders equity
Where,
Total liabilities=60,000
Total Shareholders equity =30,000
Let plug in the formula
Debt to equity ratio=60,000/30,000
Debt to equity ratio =2.00
Therefore debt to equity ratio will be 2.00
Explain the concept of fraud in organizations as emerging ethical issues. Give example of an organization who have done fraud and being convicted.