Answer:
Ending inventory= $1,848
Explanation:
Giving the following information:
June 1: 168 units $1,008
June 10: 224 units 1,568
June 15: 224 units 1,792 ($8)
June 28: 168 units 1,512 ($9)
A physical count of merchandise inventory on June 30 reveals that there are 224 units on hand.
To calculate the ending inventory using the FIFO (first-in, first-out) method, we need to use the cost of the last units incorporated into inventory.
Ending inventory= 168*8 + 56*9
Ending inventory= $1,848
Schweitzer realized that in many cases individuals could only accomplish direct human service in collaboration with official organization. What he wanted was: to help fund such organizations. to be a leader in such organizations. an absolutely personal and independent activity. to increase the number of official organizations dedicated to direct human service.
Answer: an absolutely personal and independent activity
Explanation:
Since Schweitzer realized that direct human service can only be accomplished when one collaborates with an official organization, this shows that he wanted to be an absolutely personal and independent activity.
In such case, he wants an activity that will be free from the outside control. Other options are wrong as he wasn't really interested in funding of organizations, or increasing the number of official organizations that are dedicated to direct human service.
The Market Place recently announced that it will pay its first annual dividend two years from today. The first dividend will be $0.50 a share with that amount doubling each year for the following two years. After that, the dividend is expected to increase by 4 percent annually. What is the value of this stock today if the required return is 15 percent?
Answer:
$12.99
Explanation:
Calculation to determine the value of this stock today if the required return is 15 percent
First step is to calculate P4
P4= ($0.50 *2^2*1.04)/(0.15 - 0.04)
P4= $18.91
Now let calculate the value of this stock today (P0)
P0= [$0.50/1.15^2] + [$1/1.15^3] + [($2 + $18.91)/1.15^4]
P0= $12.99
Therefore the value of this stock today if the required return is 15 percent will be $12.99
Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8 Direct labor 24 Overhead 40 Total costs per unit $72 An outside supplier offers to provide Epsilon with all the units it needs at $60 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead (this means that no matter what Epsilon does, 40% of the overhead costs will remain). Epsilon should choose to:
Answer:
It is cheaper to make the units in-house.
Explanation:
Giving the following information:
Make in-house:
Direct material $ 8
Direct labor 24
Overhead 40
Total costs per unit $72
Buying price= $60
We need to determine which option provides the lower cost. Because 40% of overhead will remain constant, we have to take it out of the equation.
Production cost:
Direct material $ 8
Direct labor 24
Overhead= 40*0.6= 24
Total production cost= $56
It is cheaper to make the units in-house.
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.
Which of the following is true of downward communication?
a. Recording a project's results and accomplishments involves downward communication.
..
O b. The process of creating progress reports is an example of downward communication.
5.
c. Problem solving and clarifications in organizations involve downward communication.
7.
d. Orientation to a company's rules and practices is an element of downward communication.
8.
о
9.
10.
C
11.
Answer:
When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...
Explanation:
3. What do you think has more risk: buying corporate bonds or buying a second house in hopes that housing prices increase?
Answer:
buying a second house
Explanation:
bonds have a high chance of providing returns whereas the housing market is very hard to predict
All of the following are examples of federal government programs available to families in need
except:
A. public housing
B. special housing for nuclear families.
C. emergency shelter grants for the homeless.
D. special housing for aging adults.
Answer:
I think the answer is B. No guarantees.
Explanation:
A loan of $400,000 is taken out which requires an annual interest payment of 4.4% of the borrowed amount of money (in market dollars). No principal payments are made, only interest is paid. Inflation is 3.8% per year. What will be the value of interest payment at the end of fourth year in real dollars?
Answer:
payment in real dollars 4 years later = $15,160.84
Explanation:
in current dollars, the interest payment = $400,000 x 4.4% = $17,600
if the inflation rate is 3.8% annual, the value of real dollars will increase by (1 + 3.8%)⁴ - 1 = 1.1609 - 1 = 16.09%
this means that we need to discount the nominal payment by $16.09%;
payment in real dollars 4 years later = $17,600 / (1 + 16.09%) = $15,160.84
Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $580,000, and factory payroll cost in April is $387,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $28,000; factory rent, $32,000; factory utilities, $20,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $680,000 cash in April. Costs of the three jobs worked on in April follow:
Job 306 Job 307 Job 308
Balances on March 31
Direct materials $30,000 $41,000
Direct labor 23,000 16,000
Applied overhead 11,500 8,000
Costs during April
Direct materials 139,000 200,000 $115,000
Direct labor 103,000 150,000 104,000
Applied overhead ? ? ?
Status on April 30 Finished (sold) Finished (unsold) In process
Required:
a. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).
b. Prepare journal entries for the month of April to record the above transactions.
c. Prepare a schedule of cost of goods manufactured.
d. Compute gross profit for April
Answer:
Marcelino Co.a. The total of each production cost incurred for April:
Direct materials $454,000
Direct labor 357,000
Applied overhead 178,500
The total cost assigned to each job:
Job 306 Job 307 Job 308
Total cost of production $358,000 $490,000 $271,000
b. Journal Entries for the month of April:
Debit Work in Process:
Job 306 $139,000
Job 307 $200,000
Job 308 $115,000
Credit Raw Materials $454,000
To record the raw materials used in production.
Debit Work in Process:
Job 306 $103,000
Job 307 $150,000
Job 308 $104,000
Credit Payroll $357,000
To record the direct labor costs.
Debit Work in Process:
Job 306 $51,500
Job 307 $75,000
Job 308 $52,000
Credit Manufacturing Overhead $178,500
To record the applied overhead costs.
c. Schedule of Cost of Goods Manufactured:
Beginning Work in Process $129,500
Direct materials 454,000
Direct labor 357,000
Applied overhead 178,500
Total production costs $1,119,000
Less Ending Work in Process 271,000
Cost of goods manufactured $848,000
d. Gross profit for April:
Sales of Job 306 = $680,000
Cost of Job 306 = 358,000
Gross profit $322,000
Explanation:
a) Data and Calculations:
Beginning inventory:
Raw materials = $84,000
Cost incurred in April:
Purchases = $580,000
Factory payroll = $387,000
Overhead costs:
Indirect materials, $59,000
Indirect labor, $28,000
Factory rent, $32,000
Factory utilities, $20,000
Factory equipment depreciation, $52,000
Total overhead costs $191,000
Cash Sales of Job 306 = $680,000
Cost Sheet:
Job 306 Job 307 Job 308
Balances on March 31
Direct materials $30,000 $41,000 $71,000
Direct labor 23,000 16,000 39,000
Applied overhead 11,500 8,000 19,500
Beginning work in process $64,500 $65,000 $129,500
Costs during April
Direct materials 139,000 200,000 $115,000 454,000
Direct labor 103,000 150,000 104,000 357,000
Applied overhead 51,500 75,000 52,000 178,500
Total cost of production $358,000 $490,000 $271,000 $1,119,000
Status on April 30 Finished (sold) Finished (unsold) In process
Logistics Solutions provides order fulfillment services for dot merchants. The company maintains warehouses that stock items carried by its dot clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours.
In the most recent month, 160000 items were shipped to customers using 6,500 direct labor-hours. The company incurred a total of $20,800 in variable overhead costs. According to the company's standards, 0.03 direct lab0Fhours are required to fulfill an order for one item and the variable overhead
Required:
a. What is the Standard labor-hours allowed (SHI to ship 160,000 terms to customers?
b. What is the standard variable overhead cost allowed (SH SR) to ship 160,000 items to customers?
c. What is the variable overhead spending variance?
4. What is the variable overhead rate variance and the variable Overhead efficiency variance?
Answer: See explanation
Explanation:
a. What is the Standard labor-hours allowed (SHI to ship 160,000 terms to customers?
Actual output = 160,000 items
Standard labour hour per time = 0.03 per time
Standard labor hour allowed = 160,000 × 0.03 = 4800 hours
b. What is the standard variable overhead cost allowed (SH SR) to ship 160,000 items to customers?
Standard variable overhead rate per hour = $3.25
Standard variable overhead cost allowed = 4800 × $3.25 = $15600
c. What is the variable overhead spending variance?
= $15600 - $20800
= $5200 Unfavorable
d. What is the variable overhead rate variance and the variable Overhead efficiency variance
Variable overhead rate variance:
= (Actual hours × Standard rate per hour ) - Actual variable overhead
= (6500 hours × 3.25) - $20800
= $21125 - $20800
= $325 F
Variable overhead efficiency variance:
= $3.25 (4800 - 6500)
= $3.25 (-1700)
= $5525 Unfavorable
The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability, or N if it is not a liability. prepaid insurance bonds payable
Item Classification
1. Current portion of long-term debt.
2. Notes payable (due in 6 to 11 months).
3. Sales taxes payable.
4. Bonus payable (to be paid in 60 days)
5. Warranty liability (6 months of coverage)
6. Prepaid Insurance (6 months of coverage)
7. Notes payable (due in 120 days).
8. Salaries payable.
9. Pension liability (to be fully paid to retired employees in next 11 months)
10. Bonds payable (due in 2 years)
Answer:
L LcnncnlnI think so buh I’d advice u to make it its correct
While calculating the costs of products and services, a standard costing system ________. does not keep track of overhead cost traces direct costs to output by multiplying the standard prices or rates by the actual quantities uses standard costs to determine the cost of products allocates overhead costs on the basis of the actual overhead-cost rates
Answer:
uses standard costs to determine the cost of products
Explanation:
In the case when we determined the cost of the product and its services so here the standard costing system would be used to measure the cost of product as this is the costing system that are based upon the estimated or predicted values and are significant for generating a product
A bank has $400 in checkable deposits, $800 in savings deposits, $700 in time deposits, $900 in loans to businesses, $300 in outstanding credit card balances, $500 in government securities, $10 in currency in its vault, and $20 in deposits at the Fed. The bank's deposits that are part of M1 are equal to
Answer: $400
Explanation:
M1 money supply simply refers to the monies which are liquid like the checkable deposits, traveler's checks, and the coins and currencies that are in circulation.
Therefore, based on the information given in the question, the bank's deposits that are part of M1 will be the $400 in checkable deposit.
Many new ventures focusing on craft beer have been launched. If the goal is to make a profit, perhaps it would have been a better choice to forget making the beer and instead focus on the hops market. There is competition for the available supply of hops, and this is especially true of the organic varieties. Cassidy Brewery uses standards to carefully track their costs. For their Hopalong label their standard for hops is 20 pounds per barrel and their standard rate is $13.00 per pound. In the past period they produced 40 barrels of their Hopalong beer using 830 pounds of hops. The hops had a cost of $15.00 per pound. Compute the total rate variance and the total efficiency variance for the past month. Also, for each variance, indicate whether the variance is favorable or unfavorable.
Answer:
a. Total rate variance = $1,660 Unfavorable
b. Total efficiency variance = $450 Unfavorable
Explanation:
From the question, we have:
Standard for hops = 20 pounds per barrel
Standard rate = Standard rate for hops = $13.00 per pound
Barrels of Hopalong beer produced = 40
Actual quantity = Actual pounds of hops used = 830 pounds
Standard quantity = Standard pounds of hops = Standard for hops * Barrels of Hopalong beer produced = 20 * 40 = 800 pounds
Actual rate = Actual cost of hops per pound = $15
Therefore, we have:
a. Compute the total rate variance for the past month
Total rate variance = (Actual rate - Standard rate) * Actual quantity = ($15 - $13) * 830 = $1,660 Unfavorable
The total rate variance of $1,660 is unfavorable because the Actual rate is greater than the Standard rate.
b. Compute the total efficiency variance for the past month
Total efficiency variance = (Actual quantity - Standard quantity) * Standard rate = (830 - 800) * $15 = $450 Unfavorable
The total efficiency variance of $450 is unfavorable because the Actual quantity is greater than the Standard quantity.
Retirement Investment Advisors, Inc., has just offered you an annual interest rate of 6 percent until you retire in 40 years. You believe that interest rates will increase over the next year and you would be offered 6.6 percent per year one year from today. If you plan to deposit $18,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit
Answer:
$32,529.54
Explanation:
To determine the answer the difference in future value of the investment options have to be determined
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
First option
$18,000 x (1.06)^40 = $185,142.92
Second option
$18,000 x (1.066)^39 = $217,672.46
Difference in future values = $217,672.46 - $185,142.92 = $32,529.54
1. A part is produced in lots of 1,000 units. It is assembled from two components worth $50 total. The value added in production (for labor and variable overhead) is $60 per unit, bringing total costs per completed unit to $110. The average lead time for the part is 6 weeks and annual demand is 3,800 units, based on 50 business weeks per year. a. How many units of the part are held, on average, in cycle inventory
Answer:
A. Average cycle inventory 500 units
Value of cycle inventory $55,000
B. Average pipeline inventory 456 units
Value of the pipeline inventory $36,480
Explanation:
a. Calculation to determine How many units of the part are held, on average, in cycle inventory
Calculation for Average cycle inventory
Average cycle inventory=1000/2
Average cycle inventory=500 units
Therefore the Average cycle inventory is 500 units
Calculation for Value of cycle inventory
Value of cycle inventory=(500 units) *($50+$60)
Value of cycle inventory=(500 units*$110)
Value of cycle inventory=$55,000
Therefore the Value of cycle inventory is $55,000
b. Calculation to determine Avarage Pipeline inventory and Value of the pipeline inventory
First step is to calculate the unit cost using this formula
Unit cost = Material + 50%of labor and variable overhead
Let plug in the formula
Unit cost=$50+(50%*$60)
Unit cost= $50 + $30
Unit cost= $80
Now let calculate the Average pipeline inventory
Average pipeline inventory = = [(3800 units/year)/(50wks/yr)] x (6 weeks)
Average pipeline inventory= 456 units
Therefore Average pipeline inventory is 456 units
Calculation to determine Value of the pipeline inventory
Value of the pipeline inventory = (456 units) x ($50+$30)
Value of the pipeline inventory=456 units×$80
Value of the pipeline inventory= $36,480
Therefore the Value of the pipeline inventory is $36,480
If an adjusting entry is not made for an accrued expense,
a. expenses will be overstated,
b. liabilities will be understated.
c. net income will be understated.
d. equity will be understated.
Answer:
c. net income will be understated.
Heidi (age 57) invested $4,000 in her Roth 401(k) on January 1, 2012. This was her only contribution to the account. On July 1, 2020, when the account balance was $6,000, she received a nonqualified distribution of $4,500. What is the taxable portion of the distribution and what amount of early distribution penalty will Heidi be required to pay on the distribution
Answer:
$450
Explanation:
For a ROTH 401 (k) qualified distribution to be non-taxable, either of the following conditions should be met:
1. Individual should be more 59 and a half years old or more.
2. Has held the account for 5 years or more.
In this case, Heidi invested at the age of 57 and received distribution of $4,500 after 8 years. So she meets both criteria but the type of distribution she received is a non-qualified one. So, $4,500 is subject to tax as per ordinary income at 10% that is $450 (0.1*4,500).
Heidi is not subject to any amount if early distribution penalty as she meets both criteria.
Roth Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $80,000 cash. Purchased $240,000 of merchandise on account. Sold merchandise that cost $154,000 for $306,000 on account. Collected $252,000 cash from accounts receivable. Paid $225,000 on accounts payable. Paid $54,000 of salaries expense for the year. Paid other operating expenses of $43,000. Roth adjusted the accounts using the following information from an accounts receivable aging schedule:______.
Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance
Current $ 32,400 0.01
0−30 13,500 0.05
31−60 2,700 0.10
61−90 2,700 0.20
Over 90 days 2,700 0.50
a. Record the above transactions in general journal form and post to T-accounts.
b. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Roth Inc. for Year 1.
Answer:
Roth Inc.
a. General Journal Debit Credit
1. Cash $80,000
Common stock $80,000
To record issuance of common stock for cash.
2. Inventory $240,000
Accounts payable $240,000
To record the purchase of goods on account.
3. Cost of goods sold $154,000
Inventory $154,000
To record the cost of goods sold.
3. Accounts receivable $306,000
Sales revenue $306,000
To record the sale of goods on account.
4. Cash $252,000
Accounts receivable $252,000
To record the receipt of cash on account.
5. Accounts payable $225,000
Cash $225,000
To record the payment of cash on account.
6. Salaries expense $54,000
Cash $54,000
To record the payment of salaries.
7. Operating expenses $43,000
Cash $43,000
To record the payment of other operating expenses.
8. Bad Debts Expense $3,159
Allowance for Doubtful Accounts $3,159
To record bad debts expense for the year.
T-accounts:
Cash
Account Titles Debit Credit
Common stock $80,000
Accounts receivable $252,000
Accounts payable $225,000
Salaries expense 54,000
Operating expenses 43,000
Balance 10,000
Accounts receivable
Account Titles Debit Credit
Sales revenue $306,000
Cash $252,000
Balance 54,000
Inventory
Account Titles Debit Credit
Accounts payable $240,000
Cost of goods sold $154,000
Balance 86,000
Accounts payable
Account Titles Debit Credit
Inventory $240,000
Cash $225,000
Balance 15,000
Common stock
Account Titles Debit Credit
Cash $80,000
Sales revenue
Account Titles Debit Credit
Accounts receivable $306,000
Cost of goods sold
Account Titles Debit Credit
Inventory $154,000
Salaries expense
Account Titles Debit Credit
Cash $54,000
Operating expenses
Account Titles Debit Credit
Cash $43,000
Bad Debts Expense
Account Titles Debit Credit
Allowance for
Doubtful Accounts $3,159
Allowance for Doubtful Accounts
Account Titles Debit Credit
Bad Debts Expense $3,159
b. Income Statement for the year 1 ended December 31:
Sales revenue $306,000
Cost of goods sold 154,000
Gross profit $152,000
Expenses:
Salaries expense 54,000
Operating expense 43,000
Bad debts expense 3,159 $100,159
Net operating income $51,841
Statement of changes in stockholders' equity:
Common Stock $80,000
Net operating income 51,841
Total Equity $131,841
Balance Sheet as of December 31:
Assets:
Cash $10,000
Accounts receivable 54,000
Allowance for
doubtful accounts 3,159 50,841
Inventory 86,000
Total assets $146,841
Liabilities and Equity:
Accounts payable $15,000
Equity $131,841
Total liabilities and equity $146,841
Statement of Cash Flows for the year 1 ended December 31:
Operating activities:
Net operating income $51,841
Add non-cash expense 3,159
Working-capital:
Accounts receivable -54,000
Inventory -86,000
Accounts payable 15,000
Net operating cash flow $(70,000)
Financing activities:
Common stock $80,000
Net cash flows $10,000
Reconciliation:
Ending cash balance $10,000
Beginning cash balance 0
Increase in net cash flows $10,000
Explanation:
a) Data and Transaction Analysis:
1. Cash $80,000 Common stock $80,000
2. Inventory $240,000 Accounts payable $240,000
3. Cost of goods sold $154,000 Inventory $154,000
3. Accounts receivable $306,000 Sales revenue $306,000
4. Cash $252,000 Accounts receivable $252,000
5. Accounts payable $225,000 Cash $225,000
6. Salaries expense $54,000 Cash $54,000
7. Operating expenses $43,000 Cash $43,000
8. Bad Debts Expense $3,159 Allowance for Doubtful Accounts $3,159
Aging of Accounts Receivable:
Number of Days Amount Percent Likely to Allowance
Past Due Be Uncollectible Balance
Current $ 32,400 0.01 $324
0−30 13,500 0.05 675
31−60 2,700 0.10 270
61−90 2,700 0.20 540
Over 90 days 2,700 0.50 1,350
Total $54,000 $3,159
Trial balance
Cash $10,000
Accounts receivable 54,000
Allowance for doubtful accounts $3,159
Inventory 86,000
Accounts payable 15,000
Common stock 80,000
Sales revenue 306,000
Cost of goods sold 154,000
Salaries expense 54,000
Operating expense 43,000
Bad debts expense 3,159
Totals $404,159 $404,159
Why is a bank more likely to offer you credit if you have a co-singer with good credit?
Answer:
They can see that you have had a good credit record and they will be more likely to offer you credit.
:)
Explanation:
Phelps, Inc. had assets of $71,028, liabilities of $16,084, and 11,130 shares of outstanding common stock at December 31, 2017. Net income for 2017 was $8,236. The company had assets of $83,529, liabilities of $19,293, 10,897 shares of outstanding common stock, and its stock was trading at a price of $10 per share at December 31, 2018. Net income for 2018 was $10,114.
Required:
a. Calculate EPS for 2018.
b. Calculate ROE for 2018.
c. Calculate the Price/Earnings Ratio for 2018.
Answer:
a. Earning per share = Net income / Average no of shares outstanding
Average no of shares outstanding = (Beginning shares + Ending share)/2 = (11,130 + 10,897) / 2 = 11,013.5.
Earning per share = $10,114/11,013.5 shares = $0.9183
b. Return on equity = Net income / Average stockholders equity
Stockholders equity 2017 = $71,028-$16,084 = $54,944
Stockholders equity 2018 = $83,529-$19,293 = $64,236
Average Stockholders equity = ($54,944+$64,236)/2 = $59,590
Return on equity = $10,114/$59,590
Return on equity = 0.1697265
Return on equity = 16.97%
c. Price earnings ratio = Market price per share / Earnings per share
Price earnings ratio = $10/$0.9183
Price earnings ratio = 10.88968746596973
Price earnings ratio = 10.89
Calculate (a) the accounts receivable period, (b) accounts payable period, (c) inventory period, and (d) cash cycle for the following firm. (Use 365 days a year. Do not round intermediate calculations. Round your answers to 1 decimal place.) Income Statement Data: Sales $ 5,000 Cost of goods sold 4,200 Balance Sheet Data: Inventory $ 550 Accounts receivable 110 Accounts payable 270
Answer:
a. Accounts receivable period:
= Accounts receivable turnover ratio * 365 days
= (Average accounts receivable / Sales) * 365
= (110 / 5,000) * 365
= 8.0 days
b. Accounts Payable period:
= Accounts payable turnover ratio * 365
= (Average accounts payable / Cost of goods sold) * 365
= (270 / 4,200) * 365
= 23.5 days
c. Inventory period:
= Inventory turnover ratio * 365
= (Average inventory / Cost of goods sold) * 365
= (550 / 4,200) * 365
= 47.8 days
d. Cash cycle:
= Inventory period + Accounts receivables period - Accounts payable period
= 47.8 + 8 - 23.5
= 32.3 days
Exercise 13-07 Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 770 $ 69 Accounts receivable (net) 1,950 1,880 Inventory 810 860 Other current assets 590 331 Total current assets $4,120 $3,140 Total current liabilities $2,030 $1,640 For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million. Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover and days in inventory at the end of the current year.
Answer: See explanation
Explanation:
1. Current Ratio = Current Assets / Current Liabilities
= $4,120 / $2030
= 2.03
2. Accounts receivable Turnover:
= Net Credit Sales / Average Accounts Receivables
= 8,258 / (1950+1880 / 2)
= 8258 / 1915
= 4.31
3. Average Collection Period
= 365 / Account Receivable Turnover
= 365 / 4.31
= 84.69 Days
4. Inventory Turnover:
= Cost of Goods Sold / Average Inventory
= 5328 / (810+860 / 2)
= 5328 / 835
= 6.38 times
5. Days in Inventory:
= 365 / Inventory Turnover Ratio
= 365 / 6.38
= 57.21 Days
Trew Company plans to issue bonds with a face value of $909,000 and a coupon rate of 6 percent. The bonds will mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar.)
Determine the issuance price of the bonds assuming an annual market rate of interest of 8.5 percent.
Issuance price
Answer:
$757,943
Explanation:
face value = $909,000
maturity = 10 years x 2 = 20 periods
coupon rate = 6% / 2 = 3%
coupon = $27,270
YTM = 8.5% / 2 = 4.25%
using a financial calculator, the PV of the bonds = $757,943
Dr Cash 757,943
Dr Discount on bonds payable 151,057
Cr Bonds payable 909,000
If you could start your own business, WHAT type of business would you start and WHY? Be sure your idea is a business and not a charity (animal shelter, helping homeless, etc.) The goal of your business should be to make a profit. Please answer in 3-4 sentences. "Henry Ford wanted to produce cars more efficiently; Oprah Winfrey wanted to help people make their lives better; Steve Jobs wanted to provide customers with user- friendly personal computers and new entertainment ideas." I А.
Which of the following is false regarding a section 83(b) election? Multiple Choice The election must be made within 30 days of the grant date. The election is an important tax-planning tool if the stock is expected to increase in value. The election freezes the value of the employee's compensation as of the grant date. If an employee leaves before the vesting date, any loss is limited to $3,000.
Answer:
D) If an employee leaves before the vesting date, any loss is limited to $3,000.
Explanation:
The 83(b) election can be regarded as
provision made under the Internal Revenue Code, which provide an option for an employee as well as startup founder to pay their taxes on the total fair market value of restricted stock within the granting time. 83(b) election can as well be applied to equity which is subjected to vesting, and Internal Revenue Service will be alerted so the body can tax the elector for the ownership at granting time instead of time of stock vesting.
It should be noted that in section 83(b) election
✓The election freezes the value of the employee's compensation as of the grant date.
✓The election must be made within 30 days of the grant date.
✓ The election is an important tax-planning tool if the stock is expected to increase in value.
Full-time students at a particular university must have at least 12 credit hours, but may take up to 18 credit hours in a semester. A student is currently signed up for 15 credit hours. In deciding whether to add one more course to a fall semester schedule, which of the following is a marginal cost or benefit that will influence the student's decision?
Please choose the correct answer from the following choices, and then select the submit answer button.
a. the total number of semesters it will take to finish the degree if the student takes an additional class in each semester
b. the wages the student misses out on because the student has to quit a job to take any classes at all
c. the tuition bill for the semester
d. the additional technology fee that is paid per credit hour
Answer:
d. the additional technology fee that is paid per credit hour
Explanation:
Since in the question it is mentioned that the full time students should take minimum 12 credit hours but it would take maximum of 18 credit hours
Now the student signed up for 15 creditor hours and he wants to add one more so the marginal cost or benefit that can impact the decision of the students is that the extra technology fee that should be paid for per credit hour
Hence, the option d is correct
A key difference between the APV, WACC, and FTE approaches to valuation is: how debt effects are considered; i.e. the target debt to value ratio and the level of debt. how the initial investment is treated. how the ratio of equity to debt is determined. how the unlevered cash flows are calculated. whether terminal values are included or not.
Answer: how debt effects are considered; i.e. the target debt to value ratio and the level of debt.
Explanation:
The Weighted Average Cost of Capital (WACC) values a project by using a discount rate that encompasses all the costs of raising capital. It therefore includes the effects of debt financing in that rate.
Adjusted Present Value (APV) on the other hand, takes the net present value of a project assuming it was solely financed by equity and then adds the present value of the benefits of debt financing such as interest tax shields and costs of debt issuance. Debt is therefore not included in the model like WACC and so considers the effects of debt differently.
Speedy Delivery Company purchases a delivery van for $32,000. Speedy estimates that at the end of its four-year service life, the van will be worth $6,000. During the four-year period, the company expects to drive the van 130,000 miles. Actual miles driven each year were 35,000 miles in year 1 and 38,000 miles in year 2.
Required:
Calculate annual depreciation for the first two years of the van using each of the following methods.
Answer:
(1) Straight-line.
Year 1 depreciation expense = $6,500
Year 2 depreciation expense = $6,500
(2) Double-declining-balance.
Year 1 depreciation expense = $16,000
Year 2 depreciation expense = $8,000
(3) Activity-based.
Year 1 depreciation expense = $7,000
Year 1 depreciation expense = $7,600
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Speedy Delivery Company purchases a delivery van for $32,000. Speedy estimates that at the end of its four-year service life, the van will be worth $6,000. During the four-year period, the company expects to drive the van 130,000 miles. Actual miles driven each year were 35,000 miles in year 1 and 38,000 miles in year 2.
Required:
Calculate annual depreciation for the first two years of the van using each of the following methods.
(1) Straight-line.
(2) Double-declining-balance.
(3) Activity-based.
The explanation of the answers is now given as follows:
(1) Straight-line.
Depreciable amount = Cost of the delivery van – Salvage value = $32,000 - $6,000 = $26,000
Annual depreciation rate = 1 / Number of useful years = 1 / 4 = 0.25, or 25%
Year 1 depreciation expense = Depreciable amount * Annual depreciation rate = $26,000 * 25% = $6,500
Year 2 depreciation expense = Depreciable amount * Annual depreciation rate = $26,000 * 25% = $6,500
(2) Double-declining-balance.
Note: The salvage value is taken care of in the computation of the depreciation expense for the last useful year under the double-declining-balance method.
Therefore, we have:
Cost of the delivery van = $32,000
Annual depreciation rate = Straight line annual depreciation rate * 2 = 25% * 2 = 50%
Year 1 depreciation expense = Cost of the delivery van * Annual depreciation rate = $32,000 * 50% = $16,000
Book value at the end of year 1 = Cost of the delivery van - Year 1 depreciation expense = $36,000 - $16,000 = $16,000
Year 2 depreciation expense = Book value at the end of year 1 * Annual depreciation rate = $16,000 * 50% = $8,000
(3) Activity-based.
Depreciable amount = Cost of the delivery van – Salvage value = $32,000 - $6,000 = $26,000
Depreciation rate = Actual miles driven each year / Expected driven miles for four years ……….. (1)
Depreciation expense for each year = Depreciable amount * Depreciation rate …………… (2)
Using equations (2), we have:
Year 1 depreciation expense = $26,000 * (35,000 / 130,000) = $7,000
Year 1 depreciation expense = $26,000 * (38,000 / 130,000) = $7,600
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. Who has the comparative advantage in producing berries
Answer:
SHEILA
Explanation:
A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.
Sheila's opportunity cost in producing berries = 10/40 = 0.25
Jim's opportunity cost in producing berries = 8/24 = 0.33
Sheila has a lower opportunity cost in the production of berries and thus has a comparative advantage in the production of berries
Carey Company had sales in 2016 of $1,560,000 on 60,000 units. Variable costs totaled $900,000, and fixed costs totaled $500,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3). However, to process the new raw material, fixed operating costs will increase by $100,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold.
(a) Prepare a projected CVP income statement for 2017, assuming the changes have not been made, and
(b) assuming that changes are made as described.
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price per unit= 1,560,000 / 60,000= $26
Unitary variable cost= 900,000 / 60,000= $15
Fixed costs= $500,000.
First, the income statement without the changes:
Sales= 1,560,000
Total varaible cost= (900,000)
Contribution margin= 660,000
Total fixed costs= (500,000)
Net operating income= 160,000
Now, with the changes:
Unitary variable cost= (15*0.8)= 12
Selling price= 26 - 1.5= $24.5
Sales in units= 60,000*1.05= 63,000
Fixed costs= 500,000 + 100,000= $600,000
Sales= 24.5*63,000= 1,543,500
Total variable cost= (12*63,000)= (756,000)
Total contribution margin= 787,500
Fixed costs= (600,000)
Net operating income= 187,500