Answer:
Wingate Company
1. A Contribution Format Income Statement for divisions:
2a. Increase monthly advertising for the West Division by $28,000 to increase its sales by 12%
East Central West Total
Sales $412,000 $670,000 $520,000 $1,602,000
Variable exp. 181,280 207,700 166,400 555,380
Contribution
margin $230,720 462,300 353,600 1,046,620
Fixed expenses 290,000 332,000 191,000 813,000
Non-Traceable
Fixed Expenses 338,000
Net operating Income
(loss) ($59,280) $130,300 $162,600 ($104,380)
2b. How much Company's Net Operating Income Increase (Decrease) with the implementation of the above Proposal:
Net operating income before advert = $162,600
Division's net operating income after advert = $160,366
Therefore, the company's net operating loss will increase by $2,234
Explanation:
a) Wingate Company's recent monthly contribution format Income Statement:
Sales $ 1,602,000
Variable expenses 555,380
Contribution margin 1,046,620
Fixed expenses 1,151,000
Net operating income (loss) $ (104,380)
b) Division West's Income Statement:
Sales $582,400 ($520,000 x 1.12)
Variable expenses 203,034 ($181,280 x 1.12)
Contribution margin $379,366
Fixed Expenses 219,000 ($191,000 + 28,000)
Net Operating Income $160,366
c) If sales value increases by 12%, the variable expenses will increase proportionately, unless there is an increase in the price, which will ultimately reduce demand, further depressing the sales value. This is why it is called Variable Cost. Therefore, a different result will be obtainable if the variable expenses are held constant, contrary to its behavior.
DS Unlimited has the following transactions during August. August 6 Purchases 78 handheld game devices on account from GameGirl, Inc., for exist240 each, terms 1/10, n/60. August 7 Pays exist440 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl eight game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 58 game devices purchased on August 6 for exist260 each to customers on account. The total cost of the 58 game devices sold is exist14, 145.37. Required: Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)
Answer:
August 6
DR Inventory $18,720
CR Accounts Payable $18,720
(To record purchase of goods for sale)
= 76 devices * $240
= $18,720
August 7
DR Inventory $440
CR Cash $440
(To record shipping costs of Inventory)
August 10
DR Accounts Payable $1,920
CR Inventory $1,920
(To record Purchase returns)
August 14
DR Accounts Payable $16,800
CR Inventory $168
CR Cash $16,632
(To record payment of purchases)
Working
Accounts Payable = Purchases - Returns
= 18,720 - 1,920
= $16,800
Inventory
Goods were purchased terms 1/10 meaning a 1% discount is goods paid for in 10 days.
= 1% * 16,800
= $168
August 23
DR Accounts Receivable $15,080
CR Sales Revenue $15,080
(To record sales of goods on account)
Sales Revenue = 58 devices * 260
= $15,080
August 23
DR Cost of Goods Sold $14,145.37
CR Inventory $14,145.37
(To record cost of Goods sold)
The Boxwood Company sells blankets for $ 37.00 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Product Z Units Cost May 01 Purchase 7 $15.00 May 10 Sale 5 May 17 Purchase 10 $16.00 May 20 Sale 8 May 23 Sale 3 May 30 Purchase 12 $24.00 Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the FIFO inventory cost method.
Answer:
$128
Explanation:
The FIFO inventory system means first in , first out. It means that it is the first purchased inventory that is the first to be sold.
Under the perpetual system, the cost of goods sold Under the FIFO system would be taken from the most recent inventory purchase prior to the sale.
The most recent inventory purchase prior to the sale occurred on the 17th. The price at which the inventory was purchased on the 17th would be used to calculate the cost of goods sold
So the cost of goods sold = $16.00 × 8 = $128
I hope my answer helps you
Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year.
Item cost $ 10.00 Standard deviation of weekly demand 25 per week
Order cost $ 250.00 Lead time 1 week
Annual holding cost (%)33 % of item cost Service probability 95 %
Annual demand 25,750
Average demand 515 per week
a. Determine the order quantity and reorder point. (Round your answers to the nearest whole number.)
Optimal order quantity units
Reorder point units
b. Determine the annual holding and order costs. (Round your answers to 2 decimal places.)
Holding cost $
Ordering cost $
c. If a price break of $50 per order was offered for purchase quantities of over 2,000, what would be the annual savings? (Round your answer to 2 decimal places.)
Answer: The answer is below...
Explanation: Answer a. Order Quantity = √2RO/C = √2 * 25750 * 250 / .33 * 10 = √1975.23 From the standard normal distribution, z = 1.64 = (515 * 1) + (1.64 * 25) = 556 Reorder point = Lead time * daily usage = 7 * 25 = 150 per week Answer b. Holding cost = Q/2 (H) = 1975/2 (.33)10 = $3,258.75 Ordering cost...
Mrs. Lu is turning 65 in November and called to ask for your help deciding on a Medicare Advantage plan. She agreed to sign a scope of appointment form and meet with you on October 15. During the appointment, what are you permitted to do
Answer:
I may provide her with the required enrollment materials and take her completed enrollment application
Explanation:
Since Mrs. Lu called to asked for my help in deciding on a Medicare Advantage plan in which She agreed to sign a scope of appointment form, this means when we finally meet for the appointment which was schedule for October 15 which is a month before her 65 birthday (November), I may provide her with all the required, important and necessary enrollment materials in which after she might have completed the enrollment materials i gave to her , I will collect the completed enrollment application from her for further processing.
Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.)
Sales $668,600
Cost 431,300
Depreciation 103,700
EBIT
Taxes (24%)
Net Income
a. Calculate the OCF. (Do not round intermediate calculations.)
b. What is the depreciation tax shield?
Answer:
a. $205,236
b. $24,888
Explanation:
a. The computation of OCF is shown below:-
EBIT = Sales - Cost - Depreciation
= $668,600 - $431,300 - $103,700
= $133,600
Net income = EBIT - Taxes
= $133,600 - ($133,600 × 24%)
= $133,600 - $32,064
= $101,536
Operating cash flow = EBIT - Taxes + Depreciation
= $133,600 - $32,064 + $103,700
= $205,236
b. The computation of depreciation tax shield is shown below:-
Depreciation tax shield = Depreciation × Tax
= $103,700 × 24%
= $24,888
A year ago, the IT team earned corporate-wide recognition for its performance. More recently, it has begun to experience some declines in its performance. They have missed the last three project deadlines and have experienced budget overruns. The team leader has encouraged the team members to reflect on and adjust their purpose. To turn around the
Answer: Reflexivity
Explanation:
Here is the complete question:
A year ago, the IT team earned corporate-wide recognition for its performance. More recently, it has begun to experience some declines in its performance. They have missed the last three project deadlines and have experienced budget overruns. The team leader has encouraged the team members to reflect on and adjust their purpose. To turn around the team's performance, the team lead is encouraging the team to show __________.
a. creativity
b. adherence to norms
c. OCBs
d. reflexivity
e. cohesion
Reflexivity simply means when individuals examine their own judgements, beliefs, and practices during a project or a research process and how their judgements, practices or beliefs may have influenced or impacted the research.
From the question, we are told that a year ago, the IT team earned corporate-wide recognition for its performance but recently, it has begun to experience some declines in its performance which has led to them missing the last three project deadlines and having experienced budget overruns.
To turn around the team's performance, the team lead is encouraging the team to show reflexivity. He wants them to look at what they've been doing earlier and what they're doing presently and make necessary adjustments regarding their judgements for the goals of the organization to be achieved.
Panama Shirt Designs is a defendant in litigation involving an employee accident in its manufacturing plant.
For each of the following scenarios, determine the appropriate way to report the situation and record any necessary entry.
- The likelihood of a loss occurring is probable and the estimated loss is $650,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
- The likelihood of a loss occurring is probable and the loss is estimated to be in the range of $600,000 to $900,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
- The likelihood of a loss occurring is reasonably possible and the estimated loss is $650,000.
The likelihood of a loss occurring is remote, while the estimated potential loss is $650,000
Answer:
1.Dr Loss 650,000
Cr Contingent Liability 650,000
2.Dr Loss 600,000
Cr Contingent Liability 600,000
3.No Journal Entry Required
4.No Journal Entry Required
Explanation:
Panama Shirt Designs
1.The contingent liability will therefore be tend to be probable and reasonably estimable.
2.Panama Shirt Designs would record a loss as well as a liability for the minimum amount of ($600,000) and in turn disclose the range between the amount of $600,000 and $900,000 in the notes to the financial statements.
3.Hence, if the likelihood of loss is tend to be reasonably possible rather than probable, we would therefore record no Journal entry, but we shall make full disclosure in a note to the financial statements to describe the contingency.
4.lastly if the likelihood of the loss is remote, then disclosure is usually not required.
Journal entry
1.Dr Loss 650,000
Cr Contingent Liability 650,000
2.Dr Loss 600,000
Cr Contingent Liability 600,000
3.No Journal Entry Required
4.No Journal Entry Required
Suppose the corporate tax rate is 40 %40%. Consider a firm that earns $ 2 comma 500$2,500 before interest and taxes each year with no risk. The firm's capital expenditures equal its depreciation expenses each year, and it will have no changes to its net working capital. The risk-free interest rate is 5 % a. Suppose the firm has no debt and pays out its net income as a dividend each year. What is the value of the firm's equity? b. Suppose instead the firm makes interest payments of $ 700$700 per year. What is the value of equity? What is the value of debt? c. What is the difference between the total value of the firm with leverage and without leverage? d. The difference in (c) is equal to what percentage of the value of the debt?
Answer: a. $30,000
b. $21,600; $14,000
c. $5,600
d. 40%
Explanation;
a. When the company is assumed to have no debt and pays its net income entirely as dividends then the Value of the firm's equity is;
= Earnings after taxes / Cost of Equity
Risk free interest rate will be used. The Earnings after taxes are used because taxes have to be taken out to find out the amount due to shareholders for the year.
= 2,500 ( 1 - 40%) / 5%
= 1,500/ 5%
= $30,000
b. If interest is paid then the Value of equity will be;
= Earnings after interest and taxes / Cost of Equity
= (2,500 - interest * ( 1 - tax) ) / Cost of Equity
= (2,500 - 700 * ( 1 - 40%) ) / 5%
= $21,600
Value of debt = Interest/cost of debt
=700/5%
= $14,000
c. The total value of the firm without Leverage has been shown to be $30,000.
The total value of the firm with leverage would be;
= Value of Equity assuming debt + Value of Debt
= 21,600 + 14,00
= $35,600
Difference;
= 35,600 - 30,000
=$5,600
d. Value of debt is $14,000
= (5,600/14,000) * 100%
= 40%
Use the information below to answer the following questions. U.S. $ EQUIVALENT CURRENCY PER U.S. $ Polish Zloty .2994 3.3406 Euro 1.2456 .8028 Mexican Peso .0752 13.2998 Swiss Franc 1.0352 .9660 Chilean Peso .002071 482.80 New Zealand Dollar .8080 1.2376 Singapore Dollar .8004 1.2494 a. If you have $275, how many Polish zloty can you get
Answer:
Explanation:
US $ = .2994
Polish Zloty = 3.3406 / US$
US $ = 1.2456
Euro = .8028 / US$
US$ = .0752
Mexican Peso = 13.2998 / US$
US$ = .9660
Swiss Franc = 1.0352 / US$
Us $ = -002071
Chilean Peso = 482.8/US$
US$ = .8080
New Zealand dollar = 1.2376 / US$
US $ = .8004
Singapore dollar = 1.2494/US$
$275 =
Workings
If $ 0.2994 = 3.3406 Polish zloty / US$
Using direct conversion by multiplication
Therefore $275 = 275 * 3,3406
= Polish Zloty 918.67
The following information is available for Quality Book Sales's sales on account and accounts receivable:
Accounts Receivable Balance, January 1, Year 2 $ 78,500
Allowance for Doubtful Accounts, January 1, Year 2 4,710
Sales on Account, Year 2 550,000
Collections of Accounts Receivable, Year 2 556,000
After several collection attempts, Quality Book Sales wrote off $2,850 of accounts that could not be collected. Quality Book Sales estimates that 0.5 percent of sales on account will be uncollectible.
Required
Compute the following amounts:
(1) Using the allowance method, the amount of uncollectible accounts expense for Year 2.
(2) Net realizable value of receivables at the end of Year 2.
Answer:
1) Amount of uncollectible accounts expenses is $ 2,750
2) Net realizable value of receivables at the end of Year 2 is $65,040
Explanation:
Accounts Receivable Balance, January 1, Year 2 = $ 78,500
Allowance for Doubtful Accounts, January 1, Year 2 = $4,710
Sales on Account, Year 2 = $550,000
Collections of Accounts Receivable, Year 2 = $556,000
1) Amount of uncollectible accounts expenses = $550,000 ×0.5% = $ 2,750
2) Allowance for doubtful accounts, beginning balance = $4,710
Less: Write off = $ -2,850
Add: Uncollectible accounts expense for the year = $2,750
Allowance for doubtful accounts, ending balance = $4,610
Accounts receivable, Beginning balance =$78,500
Add: Credit sales = $550,000
Less: Collections = $-556,000
Less: Write off = $-2,850
Accounts receivable, Ending balance = $69,650
Accounts receivable, Ending balance = $69,650
Less: Allowance for doubtful accounts, ending balance = $-4,610
Net realizable value = $65,040
If after several collection attempts, Quality Book Sales wrote off $2,850 of accounts that could not be collected. Quality Book Sales estimates that 0.5 percent of sales on account will be uncollectible.
Using the allowance method, the amount of uncollectible accounts expense for Year 2 will be $2,750Net realizable value of receivables at the end of Year 2 will be $65,0401) Uncollectible account expense
Uncollectible account expense = $550,000×0.5%
Uncollectible account expense= $2,750
2) Net realizable value
First step is to calculate the ending account receivable
Ending account receivable = $78,500+$550,000-$556,000-$2,850
Ending account receivable=$69,650
Second step is to calculate the ending allowance for doubtful accounts
Ending allowance for doubtful accounts =$4,710+$2,750-$2,850
Ending allowance for doubtful accounts=$4,610
Now let determine the Net realizable value using this formula
Net realizable value=Ending account receivable-Ending allowance for doubtful accounts
Let plug in the formula
Net realizable value =$69,650 -$4,610
Net realizable value =$65,040
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Consider the demand for Russian rublesRussian rubles in exchange for British poundsBritish pounds. Which of the following will not increase the foreign currency demand for the rubleruble? A. Currency traders who believe that the value of the rubleruble in the future will be less than its value today. B. Foreign firms and consumers who want to buy goods and services from RussiaRussia. C. Currency traders who believe that the value of the rubleruble in the future will be greater than its value today.
Answer: A. Currency traders who believe that the value of the ruble in the future will be less than its value today.
Explanation:
In the foreign exchange market, currencies are traded at different prices. From the options given in the question, the correct option is option A (Currency traders who believe that the value of the rubleruble in the future will be less than its value today).
When the currency traders believe that the value of the rubel is going to depreciate in the future, they will start selling the rubels and this will lead to a decrease in the demand for it because it will depreciate. Here, the supply will increase but the demand will reduce.
Sensitivity analysis determines the: Multiple Choice net present value range that can be realized from a proposed project. degree to which a project relies on its initial costs. ideal ratio of variable costs to fixed costs for profit maximization. range of possible outcomes given that most variables are reliable only within a stated range. degree to which the net present value reacts to changes in a single variable.
Answer:
It determines the degree to which the net present value reacts to changes in a single variable
Explanation:
Sensitivity Analysis is a tool which is used in financial modeling to analyze how the net values of a set of independent variables affect a single dependent variable under certain specific conditions.
It shows how different values of the independent variable causes changes in the single dependent variable. It predicts the result of a decision given a certain range of variables.
5. You are considering to invest $11,000 in a vehicle which is expected to last 3 years with a salvage value of $4,800. The annual operating and maintenance costs for the vehicle for year 1, 2, and 3 are expected to be $1801, $1848, and $1876 respectively. If the expected miles driven on the vehicle during year 1, 2, and 3 are 14,500, 13,000, and 11,500 respectively, and the interest rate is 7% what should be your reimbursement rate per mile so that you can break even
Answer:
Explanation:
The said Reimbursement rate per mile : $ 0.35
At break-even,
Initial Investment = Present value of cash inflows
Initial investment : $ 11,000
Let the reimbursement rate per mile be r.
The Present value of the cash inflows at 7% discount rate
[tex]= (14,500 r - 1,801) * 0.9346 + (13,000 r - 1,848) * 0.8734 + (11,500 r - 1,876) * 0.8163 + 4,800 * 0.8163 \\\\= 13,551.7 r - 1,683.21 + 11,354 r - 1,614.04 + 9,387.45 r - 1,531.38 + 3,918.24 \\\\= 34,293.15 r - 4,828.63 + 3,918.24\\\\ = 34,293.15 r - 910.35[/tex]
At the break even,
The Initial Investment = Present value of cash inflows
[tex]34,293.15 r - 910.35 = 11,000[/tex]
or
[tex]r = $ 0.3473 per mile[/tex]
Therefore, the reimbursement rate per mile so that you can break even is $0.3473
Laura often goes to the only grocery store across the street from her apartment building and buys the same brand of cereal every week. The store sells several different brands of cereal. Which of the following statements is most likely true about Laura’s consumer behavior?a. Laura is brand loyal to the grocery store, but buys the same cereal store out of inertia.b. Laura’s commitment to the grocery store is high, and her commitment to the cereal brand is low.c. Laura’s is habituated to the grocery store, and her commitment to the cereal brand is low.d. Laura is a brand switcher and is susceptible to random influences in her choice of cereal.e. Laura is brand loyal to the brand of cereal she buys, but visits the same store out of inertia.
Answer: e. Laura is brand loyal to the brand of cereal she buys, but visits the same store out of inertia.
Explanation:
From the question, we are informed that Laura often goes to the only grocery store across the street from her apartment building and buys the same brand of cereal every week even though the store sells several different brands of cereal.
The most likely reason for this is that Laura loves that particular brand of cereal she buys maybe due to its packaging, taste, quality etc. So, in this case she is brand loyal to that particular brand of cereal as she won't like to buy or consume any other brand apart from that but she visits the same store out of inertia as its the only store across the street from her apartment building
If there were other stores, she could have gone into them but will still purchase the same brand of cereal.
Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions): Investor Advisor Services ServicesRevenues $4,771 $4,597 Income from operations 1,681 1,660 Depreciation 171 154Estimate the contribution margin for each segment, assuming that depreciation represents the majority of fixed costs. Investor Services Advisor Services (in millions) (in millions) Estimated contribution margin $1,681 $1,660 If Schwab decided to sell its Advisor Services business to another company, estimate how much operating income would decline under the following assumptions. Assume the fixed costs that serve the Advisor Services business would not be sold but would be used by the other sector: $1,660 million.Assume the fixed assets were "sold": $ 1,506 million
Answer and Explanation:
a. The estimation of the contribution margin for each segment is shown below:
(in millions)
Particulars Investor Advisor Services Services
Income from
operations $1,681 $1,660
Add:
Depreciation $171 $154
Contribution
Margin $1,852 $1,814
2. Now the estimation of decline in operating income is
(in millions)
Particulars Combined services Institutional Services
Revenues $9,368 $4,771
Less:
Variable cost $5,702 $2,919
($2,919 + $2,783)
Contribution
margin $3,666 $1,852
Less:
Fixed cost -$325 -$171
Net income $3,341 $1,681
So according to the above calculations, the net operating income is declined by
= $3,341 - $1,681
= $1,660 million
The variable cost is come from
= Service revenues - income from operations - depreciation expense
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 2.10 ounces $15.00 per ounce $31.50
Direct labor 0.80 hours $15.00 per hour 12.00
Variable manufacturing overhead 0.80 hours $3.50 per hour 2.80
Total standard cost per unit $46.30
During November, the following activity was recorded, relative to production of Fludex:
a. Materials purchased, 9,420 ounces at a cost of $49,926.
b. There was no beginning inventory of materials; however, at the end of the month, 1,600 ounces of material remained in ending inventory.
c. The company employs 40 lab technicians to work on the production of Fludex. During November, they worked an average of 61.50 hours at an average rate of $12.30 per hour.
d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $5,658.
e. During November, 4,600 good units of Fludex were produced.
The company's management is anxious to determine the efficiency of the Fludex production activities.
Required:
1. For direct materials used in the production of Fludex, compute the price and usage variances.
2. For direct labor employed in the production of Fludex, compute the price and usage variances.
Answer:
1)
direct materials price variance = actual quantity x (actual price - standard price)
direct materials price variance = 7,820 x ($5.30 - $15) = 7,820 x (-$9.70) = -$75,854 favorable
direct materials usage variance = standard price x (actual usage - standard usage)
direct materials usage variance = $15 x (7,820 - 9,660) = -$27,600 favorable
2)
direct labor price variance = actual hours x (actual rate - standard rate)
direct labor price variance = 2,460 x ($12.30 - $15) = 2,460 x (-$2.70) = -$6,642 favorable
direct labor usage (efficiency) variance = standard rate x (actual hours - standard hours)
direct labor usage (efficiency) variance = $15 x (2,460 - 3,680) = $15 x (-1,220) = -$18,300 favorable
In 2007, Joe Gebbia and Brian Chesky realized they could not afford the rent on their pricey San Francisco apartment, so they decided to put an air mattress in their living room and offer people an alternative to an expensive hotel room. This is the story of how Airbnb got started. In other words, Airbnb began when Gebbia and Chesky ________; the company grew because it ________.
Answer: c. Identified a problem or frustration; identified an opportunity or need
Explanation:
Airbnb began when the founders Joe Gebbia and Brian Chesky realized that they could not afford the rent on their San Francisco apartment. This was a problem for them and they needed to solve it. Another problem they realized was that people were having to pay for expensive hotel rooms. The common denominator here being that both places were pricey.
They then identified the opportunity or need that people needed to afford their rent and visitors needed to afford places to stay temporarily and then acted on this opportunity by putting an air mattress in their living room and offering people an alternative to an expensive hotel room.
On August 31,the balance sheet of La Brava Veterinary Clinic showed cash $9,000,Account receivable$1700,supplies $600,equipments $6000,account payable $3600,common stock $13,00 and retained earings $700. During september,the following transaction occur
1. paid $2900 cash for accounts payable
2. collected $1,300 of accounts receivable
3. purchased additional equipments for $2100,paying $800 in cash and the balance on account
4. recognized revenue of $7300 of which $1500 is collected in cash and balance due in october
5. declared and paid $400 cash dividend
6. paid salaries $1700 rent for september $900,and advertising expense $200
7. Incurred utilities expense for month on account $170
8. Received $10,000 from capital bank on 6 month note payable
a. prepare a tabular analysis of september transactions begin with august 31 balances.column headings: cash,account receivable,supplies,equipments,account payable,common stock,retain earnings with separate column for revenues,expenses,dividends.Including margin explanation changes in retain earnings. Revenue is called Service Revenueb. prepare an income statements for september,a retained earnings statements for september,and a balance sheet at september 30.
Answer:
Brava Veterinary Clinic
a) Tabular Analysis of September Transactions:
see attached.
b1) Income Statement for September:
Service Revenue $7,300
Expenses:
Salaries $1,700
Rent 900
Advertising 200
Utilities 170 ($2,970)
Net Income $4,330
b2) Retained Earnings Statements for September
Net Income $4,330
Beginning Retained Earnings $700
Dividends ($400)
Ending Retained Earnings $4,630
b3) Balance Sheet at September 30:
Assets:
Cash $14,900
Accounts Receivable 6,200
Supplies 600
Equipment 8,100
Total Assets $29,800
Liabilities + Equity:
Accounts Payable $12,170
Common Stock 13,000
Retained Earnings 4,630
Total Liabilities + Equity $29,800
Explanation:
Financial Statements (Income Statement and Balance Sheet) are prepared at the end of a period to show the financial performance (Net Income) and the financial position (Assets = Liabilities + Equity) of a business entity.
A tabular statement of transactions illustrates the changes that have taken place during the period as a result of transactions. Transactions affect the Assets and Liabilities and Equity equally. The excess of revenue over expenses gives a net income.
Answer:
For a better visualization of the answer the first point was attached as an image.
Income Statement
Sales Revenues 7300
Salaries expense (1700)
Rent Expense (900)
Advertising Expense (200)
Utilities expense (170)
Net Income 4,330
Retained Earnings
Beginning 700
Income 4,330
Dividends (400)
Ending 4,630
Balance Sheet
Cash 14,900
Account Receivables 6,200
Supplies 600
Current 21,700
Equipment 8,100
Total Assets 29,800
Liablities
Account Payable 2,170
Note Payable 10,000
Total Liabilities 12,170
Equity
Common Stock 13,000
Retained Earnings 4,630
Total Equity 17,630
Total Liabilities + Equity 29,800
Explanation:
The dividends paid are not considered an expense.
We consider revenues and expense using the accrual basis rather than cash basis so we also recognize accrued expense (utilities ) and accrued revenues (sales which weren't paid right away)
For the Balance sheet the equipment is considered long.temr asset as their usefil life exceed a year.
The note payable while it is different from account payable is also a current liaiblity as it is due within the one-uyear window.
Burton Bush wants to retire in Arizona when he is 80 years of age. Burton, who is now 55, believes he will need $500,000 to retire comfortably. To date, he has set aside no retirement money. If he gets an interest rate of 6% compounded annually, he will have to invest today (use the tables in the handbook):__________
Answer:
$116,499.15
Explanation:
To find the amount he will have to invest today, we have to find the present value of $500,000 at the 6% interest rate
PV = FV (1+r)^-n
PV = Present value
FV = Future value = $500,000
R = interest rate = 6%
N = number of years = 25
$500,000 ( 1 + 0.06) ^-25 = $116,499.15
I hope my answer helps you
A major advantage of S corporations is that they: Multiple Choice Can have more stockholders than a C corporation. Require less paperwork to set up than a C corporation does. Avoid the problem of double taxation associated with conventional corporations. Can operate in foreign nations as if they were domestic corporations.
Answer:
.Avoid the problem of double taxation associated with conventional corporations
Explanation:
An s corporation is a type of corporation that meets specific Internal Revenue Code requirements. It Avoid the problem of double taxation associated with conventional corporations
Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors. Determine the cost per case for each of the four flavors. Round your answers to two decimal places.
Answer and Explanation:
The cost per case for each of the four flavors are shown below:
Particulars Orange Cola Lemon Lime Root Beer
Total Cost Transferred
to finished goods (a) $19,125 $391,800 $324,000 $36,000
No. of Cases (b) 2,500 60,000 50,000 4,000
Cost Per Case
(a ÷ b) $7.65 $6.53 $6.48 $9
By dividing the total cost from the number of cases we can get the cost per case for each of the four flavors
For each of the following separate transactions: Sold a building costing $38,500, with $23,400 of accumulated depreciation, for $11,400 cash, resulting in a $3,700 loss. Acquired machinery worth $13,400 by issuing $13,400 in notes payable. Issued 1,340 shares of common stock at par for $2 per share. Note payables with a carrying value of $41,700 were retired for $50,400 cash, resulting in a $8,700 loss. (a) Prepare the reconstructed journal entry. (b) Identify the effect it has, if any, on the investing section or financing section of the statement of cash flows.
Answer:
Both requirements are solved below
Explanation:
REQUIREMENT A:
Sale of a building Debit Credit
Cash $11,400
Acc Depreciation $23,400
Loss on disposal $3700
Building $38,500
Acquisition of Machinery Debit Credit
Machinery $13,400
Notes $13,400
Issuance of share Debit Credit
Cash(1340x2) $2,680
Share Capital $2,680
Retired Debt Debit Credit
Note payable $41,700
Loss on retirement $8,700
Cash $50,400
REQUIREMENT B:
Cash flow from investing activities
Gain on disposal of building $11,400
Net cash flow from investing activities $11,400
Cash flow from financing activities
Cash received from issuing shares $2,680
Cash paid for retirement of debt ($50,400)
Net cash flow from investing activities ($47,720)
Carl transfers land with a fair market value of $120,000 and basis of $30,000, to a new corporation in exchange for 85 percent of the corporation's stock. The land is subject to a $45,000 liability, which the corporation assumes. What amount of gain must Carl recognize as a result of this transaction?
Answer: $15,000
Explanation:
From the question, Carl transfers land with a fair market value of $120,000 and basis of $30,000, to a new corporation in exchange for 85 percent of the corporation's stock and that the land is subject to a $45,000 liability, which the corporation assumes.
The amount of gain that Carl must recognize as a result of this transaction will be the difference between the liability the land is subjected to which is $45,000 and the basis of the land which is $30,000.
= $45,000 - $30,000
= $15,000
Yasmin expects to produce 2 comma 000 units in January and 2 comma 180 units in February. The company budgets 5 pounds per unit of direct materials at a cost of $ 50 per pound. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is 5 comma 400 pounds. Yasmin desires the ending balance in Raw Materials Inventory to be 40% of the next month's direct materials needed for production. Desired ending balance for February is 4 comma 800 pounds. Prepare Yasmin's direct materials budget for January and February.
Answer:
Yasmin Inc.
Direct Materials Budget
For the Months of January and February, Year 202x
January February
Units to be produced 2,000 2,800
Direct materials per unit 5 5
Direct materials need for prod. 10,000 14,000
Desired ending inventory 5,600 4,800
Beginning inventory (5,400) (5,600)
Direct material purchases 10,200 13,200
Cost per pound $50 $50
Cost of direct materials $510,000 $660,000
Explanation:
month expected production
January 2,000
February 2,800
5 pounds per unit at $50 per pound
beginning raw materials inventory 5,400 pounds
desired ending raw materials inventory 4,800 pounds
O.K. Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. O.K. expects to incur $2,000,000 of overhead during the next period and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is O.K. Company's overhead application rate
Answer:
Predetermined manufacturing overhead rate= $0.4 per direct labor dollar
Explanation:
Giving the following information:
O.K. expects to incur $2,000,000 of overhead during the next period and expects to use 50,000 labor hours for $10.00 per hour.
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,000,000/ (50,000*10)
Predetermined manufacturing overhead rate= $0.4 per direct labor dollar
GDP would include all of the following except:
a. income earned for engineering services.
b. income earned by an airline pilot.
c. tips earned but not reported by a waitress at an upscale restaurant.
d. the purchase of a new automobile by a school.
e. the purchase of a new home by a retired couple.
Answer:
The correct answer is the option C: tips earned but not reported by a waitress at an upscale restaurant.
Explanation:
To begin with, the Gross Domestic Product or GDP comprehends in economic terms the monetary measure of the market value of all the final goods that an economy produces in a certain amount of time. Moreover, this measure is formed by different variables that are the consumption, investment, government spending and net exports. And in that scenario, all the of the cases presented will be included in the GDP of the economy except the tips that are not reported due to the fact that those earnings will figured as out of the circular flow of economy as it will represent a leak, a filtration of the system.
Answer:
The correct answer is C
Last year, your company had sales of $4,800,000 and cash operating expenses of $400,000. The firm received $80,000 in dividend income and paid $50,000 in dividends to its shareholders. Costs of goods sold came to $1,600,000 and the firm had $600,000 in depreciation expense. Your firm has $900,000 in long-term debt outstanding with a 5% interest rate. Calculate the firm’s tax liability.
Answer:
The firm’s tax liability at 21% = $469350
Explanation:
Given that:
Sales = $4,800,000
cash operating expenses = $400,000
Dividend income = $80,000
Payment to shareholders = $50,000
Costs of goods sold = $1,600,000
Depreciation expense of the firm = $600,000
long-term debt outstanding = $900,000
Interest rate = 5% of long-term debt outstanding
= 0.05 × $900,000
= $45000
We are to Calculate the firm’s tax liability.
Since 2018; Tax rate = 21%
So:
The firm’s tax liability at 21% = (Sales + Dividend income - cash operating expenses - Costs of goods sold - Depreciation expense of the firm - Interest rate) × 21 %
The firm’s tax liability at 21% = ( $4,800,000 + $80,000 - $400,000 - $1,600,000 - $600,000 - $45000 ) × 21 %
The firm’s tax liability at 21% = $(4880000 −2645000) × 0.21
The firm’s tax liability at 21% = $2235000 × 0.21
The firm’s tax liability at 21% = $469350
Titanic Roofing Company has estimated the following amounts for its next fiscal year: Total fixed costs $ 833 comma 000 Sale price per unit 60 Variable cost per unit 30 If the company spends an additional $ 30 comma 000 on advertising, sales volume would increase by 2 comma 500 units. Before the change, the company's sales level exceeds the breakeven point. What effect will this decision have on the operating income of Titanic? A. Operating income will decrease by $ 45 comma 000. B. Operating income will increase by $ 45 comma 000. C. Operating income will increase by $ 75 comma 000. D. Operating income will increase by $ 150 comma 000.
Answer: B. Operating income will increase by $ 45,000
Explanation:
Total fixed cost = $833,000
Sale price per unit = 60
Variable cost per unit = 30
Advertising = $30,000
Increase in sales volume = 2500
The contribution margin is the difference between the sales price per unit and the variable cost per unit.
= 60 - 30
= 30
Therefore, Hence the increase in the contribution margin will be:
= ($30 × 2500)=$75000
We then subtract the additional cost of $30,000 from $75,000. This will be:
= $75,000 - $30,000
= $45,000
Therefore, operating income will increase by $45,000
The definition of __________ is "The tools, techniques, processes, and activitiesthat accelerate any product development lifecycleto produce higher quality, more reliable, and moresecure products or projects to market on time."
Answer:
Digital innovation
Explanation:
In marketing, digital innovation refers to using new technologies and methodologies in order to accelerate the development and production of new products or services. In other words, through the use of technology we can shorten the product development stages in order to offer better products faster.
Many times, clients will shift new people into the project who have no experience with it as they move their key people to new challenges. This issue is: An emotional one for the project team. An emotional one for the clients. One that is external and intellectual. One that is internal and intellectual.
Answer:
Many times, clients will shift new people into the project who have no experience with it as they move their key people to new challenges. This issue is: One that is external and intellectual.
Explanation:
External issues do not affect an entity obviously. The clients shifting new people into projects and moving their key people to new challenges know why they must be doing so. It may be to encourage organizational learning. It may be because the key people have been promoted and need to move to higher positions.
Most importantly, it is the clients as entities that we should be concerned and deal with. Clients like other organizational entities have systems, processes, and policies that they work with to produce results. Their internal management should remain internal and not be externalized by overtly and overzealous outsiders.