Answer:
The difference in value is worth $8,269 more in money.
Explanation:
Case 1. Payments are made at the end of each year
So here, we will use the annuity formula for computing the present value of payments that we are receiving at the end of each year.
Here
Annual Cash flow is $12,100
Interest Rate "r" is 7%
And
Number of Payments "n" will be 17
Present Value = Cash flow * [1 - 1 / (1+r)^n] / r
By putting values, we have:
Present Value = $12,100 * [1 - 1 / (1 + 7%)^17] / 7%
Present Value = $12,100 * 9.763223
Present Value = $118,135
Now
Cash 2. Payments are arising at the start of each year
Just like the case above, we will use the annuity formula for computing the present value of payments that we are receiving at the start of each year. The first payment will be at worth the same because it is received in today's price.
So
Present Value = Cash flow + Cash flow * [1 - 1 / (1+r)^n] / r
So by putting values, that were used in case 1, we have:
Present Value = $12,100 + $12,100 * (1 - (1/1.07)^16) / 0.07
Present Value = $12,100 + $12,100 * 9.446649
Present Value = $126,404
Difference in Present Value = PV of Case 1 - PV of Case 2
= $126,404 - $118,135 = $8,269
The difference in value is worth $8,269 more in money.
Your client is an attorney. Her new admin is just learning how to use QuickBooks Online. The Automatically create invoices and don't notify me setting is on. The attorney charges her clients for copies made. These should have been entered using delayed charges, but the admin did not know that, and they were not entered into QuickBooks Online. What is the risk/danger of the new office admin person not entering the copies made in the Delayed Charges? 1. Job costs for this client will be reduced 2. There is no risk. Invoices will go out just fine 3. The attorney's clients will be undercharged 4. Photocopy expense will be understated
Answer:
3. The attorney's clients will be undercharged
Explanation:
Since the QuickBooks Online is set to "automatically create invoices" and clients are charged for copies made. The only missing link is that the charges to clients have not been entered into the Delayed charges, which will capture the expenses on photocopy. Therefore, "the risk/danger of the new office admin person not entering the copies made in the Delayed Charges" is that "the attorney's clients will be undercharged."
Identify and analyze a department in your organization that experiences frequent equipment or process failures. If you are not currently associated with an organization, conduct an Internet search or use the Hunt Library resource to find a firm. Discuss what the organization can do to improve the reliability of the equipment or processes and whether some of the improvement could come through enhanced maintenance.
Answer:
Find the explanation below.
Explanation:
The name of my organization is Prime Plc. known for the production of confectionaries. The Production Department in my organization has been experiencing frequent equipment failures quite recently. A close investigation showed that the delays were caused by a breakdown of the sugar mills, mixers and, coating machines. This has resulted in delays in the production process. To improve these failures, I believe that the organization should:
1. Employ Technicians who can quickly carry out repair work on these machines when they breakdown instead of outsourcing the repair work for this would take a longer amount of time to get the machines up and running.
2. Introduce the periodic maintenance of these machines. Machines are subject to wear and tear, so I would suggest that the maintenance of these machines is carried out within intervals of three months.
3. Train the production personnel on the proper usage of these machines. Production personnel should be updated on current and effective ways of handling machines so as to guarantee their safety and longer use.
4. Make provisions for backup machinery and equipment. The organization would do well to purchase backup equipment especially for machines that the organization cannot do without so that in the event of an equipment failure, the production process would not be stalled.
When these measures are considered, there would be a significant improvement in the production department.
Because of conflicts of interest between shareholders and management, it is in the interest of shareholders to monitor management's performance through:
Answer:
The answer is yearly Financial Report reviewed by external (independent) auditor
Explanation:
Agency problem arises due to conflicts of interest between the owners of the company (shareholders) and the agents(management or directors). For example, the shareholders might be interested in retaining the end of the year profit while the directors might want to acquire non-current asset or acquisition of company with the fund.
To monitor the running of the company, shareholders employ external auditor to give opinions on the financial statements prepared by the management. The auditor ascertain whether the financial statements is true and fair and is not materially misstated.
External auditors are answerable to only the shareholders.
Dechert's camera fails to focus properly so he takes the camera to a camera store that sells new and used cameras and also repairs them. When Dechert returns to the store a week later to pick up the camera it is not found. It turns out after the camera was fixed a dishonest employee sold it to a customer who came in to buy a used camera. If Dechert finds out the name of the customer who bought the camera can he recover it from the customer?
Answer: No.
Explanation:
From the question, we are informed that Dechert's camera fails to focus properly, therefore he takes the camera to a camera store that sells new and used cameras and also repairs them. He later returns to the store to pick up the camera it is not found and he later found out that after the camera was fixed, a dishonest employee sold it to a customer who came in to buy a used camera.
Even if Dechert finds out the name of the customer who bought the camera, he cannot recover it from the customer because this is an exception to the rule of law whereby it is stated that a legal title cannot be transferred to a property by a thief. Because the store sold both used and new cameras, the store has the power to give out Dechert's title to someone who purchases in an ordinary course of the said business.
The company is currently selling 6,500 units per month. Fixed expenses are $184,000 per month. The marketing manager believes that a $7,800 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
Answer:
$14,050
Explanation:
Calculation of what should be the overall effect on the company's monthly net operating income of this change
Contribution Income Statement
6,500 units 6,690 units
Sales (at $190 per unit)$1,235,000 $1,271,100
Variable expenses (at $75 per unit)
$487,500 $501,750
Contribution margin$747,500 $ 769,350
Fixed expenses ($7,800 increase)
$184,000 $191,800
Net operating income$563,500 $577,550
6,500 units+190 unit increase in monthly sales=6,690
Fixed expenses ($7,800 increase)
$184,000 +$7,800$= $191,800
Net operating income$563,500 -$577,550 =$14,050
Therefore Net operating income would increase by $14,050
Presented below are incomplete manufacturing cost data.
1. Determine the missing amounts for three different situations.
Direct Materials Used Direct Labor Used Factory Overhead Total manufacturing Cost
(1) $44,000 $62,200 $51,100 $_____
(2) $_____ $77,500 $144,000 $300,000
(3) $58,600 $_____ $114,000 $311,000
2. Determine the missing amounts.
Total Manufacturing Costs Work in Process (January 1) Work in Process (December 31) Cost of Goods Manufactured
(1) $_____ $122,000 $85,200 $_____
(2) $300,000 $_____ $99,800 $323,600
(3) $311,000 $465,000 $_____ $719,000
Answer and Explanation:
The computation of the missing amount is as follows
As we know that
Total manufacturing costs is
= Direct materials cost + Direct labor cost + Factory overhead cost
And,
Cost of goods manufactured is
= Total manufacturing costs + Beginning work in process - ending work in process
Based on this, the calculation is as follows
Direct materials Direct labor Factory Total
overhead manufacturing costs
1. $44,000 $62,200 $51,100 $157,300
2. $78,500 $77,500 $144,000 $300,000
3. $58,600 $138,400 $114,000 $311,000
Now
Total Manufacturing Costs Beg. Work End. Work Cost of Goods
in Process in Process Manufactured
1. $157,300 $122,000 $85,200 $194,100
2. $300,000 $123,400 $99,800 $323,600
3. $311,000 $465,000 $57,000 $719,000
Peeker Industries is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years, it will be depreciated on a straight-line basis, and there will be no salvage value. No change in net operating working capital would be required. This is just one of many projects for the firm, so any losses on this project can be used to offset Page 2 of 3 gains on other firm projects. The marketing manager does not think it is necessary to adjust for inflation since both the sales price and the variable costs will rise at the same rate, but the CFO thinks an inflation adjustment is required. What is the difference in the expected NPV if the inflation adjustment is made versus if it is not made? WACC 10.0% Net investment cost (depreciable basis) $200,000 Units sold 50,000 Average price per unit, Year 1 $25.00 Fixed oper. costs excl. depreciation (constant) $150,000 Variable oper. cost/unit, Year 1 $20.20 Annual depreciation rate 33.333% Expected inflation 4.00% Tax rate 40.0%
Answer:
Explanation:
can you please help me please
Entries for Direct Labor and Factory Overhead Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a job order cost system. The time tickets from June jobs are summarized as follows: Job 11-101 $4,640 Job 11-102 5,510 Job 11-103 6,612 Job 11-104 12,760 Job 11-105 18,270 Factory supervision 12,500 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $23 per direct labor hour. The direct labor rate is $29 per hour. a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank
Answer:
Work In Process : Job 11-101 $4,640 (debit)
Work In Process : Job 11-102 $5,510 (debit)
Work In Process : Job 11-103 $6,612 (debit)
Work In Process : Job 11-104 $12,760 (debit)
Work In Process : Job 11-105 $18,270 (debit)
Work In Process : Indirect labor $12,500 (debit)
Salaries Payable $60,292 (credit)
Explanation:
The factory labor consist of direct labor and indirect labor and all are accounted in the work in process account.
Direct labor can be traced directly to the job being manufactured.
Whilst indirect labor can not be traced directly to the job being manufactured example is factory supervisor`s salary.
Indicate how each of the following would shift the (1) marginal-cost curve, (2) average-variable-cost curve, (3) average-fixed-cost curve, and (4) average-total-cost curve of a manufacturing firm. In each case specify the direction of the shift.
a. A reduction in business property taxes.
MC AVC AFC ATC
(Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change
b. An increase in the nominal wages of production workers.
MC AVC AFC ATC
(Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change
c. A decrease in the price of electricity.
MC AVC AFC ATC
(Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change
d. An increase in insurance rates on plant and equipment.
MC AVC AFC ATC
(Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change
e. An increase in transportation costs.
MC AVC AFC ATC
(Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change (Click to select) Shift up Shift down No change
Answer:
a. A reduction in business property taxes.
MC - No Change
AVC - No Change
AFC - Shift down
ATC - Shift down
Because business property taxes are a fixed cost, a reduction of this type would shift down bouth the AFC and ATC cost curves.
b. An increase in the nominal wages of production workers.
MC - Shift up
AVC - Shift up
AFC - No Change
ATC - Shift up
Production workers are direct labor, and as direct labor, their cost depends on the level of production. In other words, the wages of production workers are a variable cost, and an increase in their nominal wages would shift up the AVC, and the ATC.
The MC curve would shift up as well because now each additional unit of input (the production workers), becomes more expensive due to the wage increase.
c. A decrease in the price of electricity.
MC - Shift down
AVC - Shift down
AFC - Shift down
ATC - Shift down
Electricity can be both a fixed cost, and a variable cost. For example, the electricity used in the administrative offices is a fixed cost, while the electricity used to power machinery is a variable cost. As a result, a reduction in the price of it would shift down all the cost curves.
d. An increase in insurance rates on plant and equipment.
MC - No Change
AVC - No Change
AFC - Shift up
ATC - Shift up
Insurance rates on plant and equipment are a fixed cost, for this reason, an increase in the rates would shift up both the AFC and the ATC.
e. An increase in transportation costs.
MC - No Change
AVC - Shift up
AFC - No Change
ATC - Shift up
Transportation costs are mostly a variable cost: the more output, the more goods have to be delivered, the higher the transportation costs. An increase in these costs would shift up both the AVC and the ATC curves.
What are the 3 levels of access that can be granted to Team users of QuickBooks Online Accountant
Answer:
In QuickBooks Online Accountant, users with admin access and Firm Owners and have the authority to access of other users in the firm. The 3 levels of access that can be granted to Team users of QuickBooks Online Accountant are:
Full : these users have access to accounting features, and books such as edit, remove and add users.Basic : These users have access to create and read accounting.Custom: These users can access administrative functions for the firm , access to manage clients and access to client QuickBooks .The three levels of access that can be granted to the team users of QuickBooks Online includes the Basic access, Full access and Custom access.
QuickBooks Online Accountant is an accounting based software which allows companies to controls all the financial side of their business
Only the users with administrator access and Firm Owners have the authority to access information on the accounting software.
The 3 levels of access granted to team users on the QuickBooks Online Accountant includes:
Basic access users: These are users who have access have access to create and read accounting information.Full access users: These are users who have access to accounting features such as edit, remove and add users as well as privilege enjoyed by basic access users. Custom access users: These are users who can access administrative functions for the firm.Read more about this here
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g At price of $1.30 per pound, a local apple orchard is willing to supply 150 pounds of apples per day. At a price of $1.50 per pound, the orchard is willing to supply 170 pounds of apples per day. Using the midpoint method, the price elasticity of supply is about
Answer:
The price elasticity of supply is about 0.87.
Explanation:
The price elasticity of supply is the degree of responsiveness of quantity supplied to the change in price.
The midpoint method of calculating the price elasticity of supply uses the average percentage change in both quantity and price, and this is given as follows:
Price elasticity of supply = Percentage change in supplied / Percentage change in price
We therefore apply this as follows:
Percentage change in quantity supplied = {(New supply - Old supply) / [(New supply + Old supply) / 2]} * 100 = {(170 - 150) / [(170 + 150) / 2]} * 100 = 12.50%
Percentage change in price = {(New price - Old price) / [(New price + Old price) / 2]} * 100 = {(1.50 - 1.3) / [(1.50 + 1.30) / 2]} * 100 = 14.29%
Therefore, we have:
Price elasticity of supply = Percentage change in supplied / Percentage change in price = 12.50% / 14.29% = 0.87
Therefore, the price elasticity of supply is about 0.87.
Note that since the price elasticity of demand of about 0.87 is less than 1, it implies that the relationship between the quantity demanded and the price is inelastic.
Computing Predetermined Overhead Rates and Job Costs LO2-1, LO2-2, LO2-3 Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 100,000
Fixed manufacturing overhead cost 6,50,000
Variable manufacturing overhead cost per machine-hour $3.00
Required:
1. Compute the plantwide predetermined overhead rate
2. During the year, Job 400 was started and completed. The following information was available with respect to this job:
Direct material 450
Direct labor cost 210
Machine hours used 40
Compute the total manufacturing cost assigned to Job 400.
3. If Job 400 includes 52 units, what is the unit product cost for this job?
4. If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?
5. If Moody hired you as a consultant to critique its pricing methodology, what would you say?
Answer:
1. $6.50 per machine hour
2. $920
3. $ 17.69
4. $21.23
5. Pricing methodology - Cost plus Mark -up
- This ensures that the price charged covers all costs related to the product, which is good for maintaining profits.
- However the price does not consider the market demand and competition which might affect sales volumes
Explanation:
Predetermined overhead rate
Predetermined overhead rate = Budgeted Overheads / Budgeted Activity
= $650,000 / 100,000
= $6.50 per machine hour
Total manufacturing cost assigned to Job 400
Direct material $450
Direct labor cost $210
Overheads Applied ($6.50 × 40) $260
Total manufacturing cost $920
Unit product cost for Job 400
Unit product cost = Total Cost / Number of units completed
= $920 / 52 units
= $ 17.6923
= $ 17.69
Selling price if Moody uses a markup percentage of 120%
Selling price = Unit product cost × 120 %
= $ 17.69 × 120%
= $21.23
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
Inventory on units; cost $5.70 each.
Purchased 12,000 units for $5.90 each.
Sold 9,600 units for $12 each.
Purchased 7,200 units for $6.00 each.
Sold units for $11.40 each.
Purchased 4,400 units for $5. 80 each.
Inventory on units.
Required:
Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the Average cost method.
Aug. 1 Inventory On Hand—2,000 Units; Cost $5.70 Each.
Second sales assumed to be 7,000 units at a price of $11.40 each.
Answer:
Altira Corporation
August 2021 Ending Inventory & Cost of Goods Sold:
1. Ending Inventory = 9,000 units at $5.88 per unit = $52,920
2. Cost of goods sold =
9,600 x $5.87 = $56,352
7,000 x $5.95 = $41,650
16,600 units = $98,002
Explanation:
a) Calculations:
Units Unit Cost Total Cost
Beginning Inventory 2,000 $5.70 $11,400
Purchases 12,000 $5.90 $70,800
Weighted average cost = ($11,400 + $70,800) / 14,000 = $5.87
Sales (9,600) $12.00 $115,200
Units remaining 4,400 $5.87 $25,828
Purchases 7,200 $6.00 $43,200
Weighted average cost = ($25,828 + $43,200) / 11,600 = $5.95
Sales (7,000) $11.40 $79,800
Units remaining 4,600 $5.95 $27,370
Purchases 4,400 $5.80 $25,520
Weighted average cost = ($27,370 + $25,520) / 9,000 = $5.88
Ending Inventory 9,000 $5.88 $52,920
b) The 'Average Cost Method' or the Weighted Average Cost Method assumes that the cost of inventory is based on the average cost of the goods available for sale during the period. To compute the average cost, divide the total cost of goods available for sale by the total units available for sale.
A tailor makes wool tweed sport coats and wool slacks. He is able to get a shipment of 150 square yards of wool cloth from Scotland each month to make coats and slacks, and he has 200 hours of his own labor to make them each month. A coat requires 3 square yards of wool and 10 hours to make, and a pair of slacks requires 5 square yards of wool and 4 hours to make. The tailor earns $50 in profit from each coat he makes and $40 from each pair of slacks. He wants to know how many coats and pairs of slacks to produce to maximize profit.
a. Formulate an integer linear programming model for this problem.
b. Determine the integer solution to this problem by using the computer. Compare this solution with the solution without integer restrictions and indicate whether the rounded-down solution would have been optimal.
Answer:
maximize 50c+40s subject to 3c+5s≤150, 10c+4s≤200(c, s) = (10, 24)Explanation:
a) The linear programming model takes into account material and labor. It seeks to maximize profit.
Let c and s represent the numbers of coats and slacks produced in a month.
Maximize profit = 50c +40s subject to ...
3c + 5s ≤ 150 . . . . . limit on yards of wool
10c + 4s ≤ 200 . . . limit on hours of labor
c ≥ 0, s ≥ 0 . . . . . . . quantities produced cannot be negative
__
b) Many on-line solvers, even with an "integer" restriction, produce a rational number as a solution. We did find one that was able to accept a restriction that values be integers. Its solution is ...
(coats, slacks) = (10, 24) . . . . first attachment
The non-integer solutions are ...
(coats, slacks) = (200/19, 450/19) ≈ (10.526, 23.684) . . . . second attachment
A graphical solution lets one find integer grid points that are close to the optimum non-integer solution.
(coats, slacks) = (10.526, 23.684) = (10, 24) . . . third attachment
Rounding down the non-integer solution would give (10, 23), which is less than the optimal solution.
Cost of Goods Sold Pine Creek Company completed 200,000 units during the year at a cost of $3,000,000. The beginning finished goods inventory was 25,000 units at $310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow. $
Answer:
$3,085,000
Explanation:
FIFO means first in first out. It means it is the first purchased inventory that is the first to be sold.
The costs of goods sold would first be allocated to the beginning inventory = $310,000
The remaining cost of goods sold Je allocated to the inventory made during the year = 210,000 - 25,000 = 185,000
185,000 × ( $3,000,000 / $200,000) = $2,775,000
Total cost of goods sold = $2,775,000 + $310,000 = $3,085,000
I hope my answer helps you
Analysis of income statements,balance sheet and,aditional information from the accounting records of Gatdgets.Inc., reveals the following items1. Purchase of a patent. 2. Depreciation expense. 3. Decrease in accounts receivable. 4. Issuance of a note payable. 5. Increase in inventory. 6. Collection of notes receivable. 7. Purchase of equipment. 8. Exchange of long-term assets. 9. Decrease in accounts payable. 10. Payment of dividends.Required:Indicate in which section of the statement of the cash flows each of these items would be reported:operating activities,or a separate non cash activities note.
Answer:
1. Purchase of a patent - Investing activities
2. Depreciation expense - Operating activities
3. Decrease in accounts receivable - Operating activities
4. Issuance of a note payable - Financing activities
5. Increase in inventory - Operating activities
6. Collection of notes receivable - Investing activities
7. Purchase of equipment - Investing activities
8. Exchange of long-term assets - Non-cash activities
9. Decrease in accounts payable - Operating activities
10. Payment of dividends - Financing activities
The Haskins Company manufactures and sells radios. Each radio sells for $76.00 and the variable cost per unit is $40.00. Haskin's total fixed costs are $70,000.00, and budgeted sales are 46,000.00 units. What is the contribution margin per unit
Answer:
The answer is $36.00
Explanation:
Contribution margin per unit is when variable cost per unit is subtracted from selling price per unit. Contribution is that part of revenue that was not used by variable costs and was used to cover fixed costs
selling price per unit = $76.00
variable cost per unit = $40.00
Therefore, contribution margin per unit is $76.00 - $40.00
= $36.00
Journalizing and posting an adjusting entry for accrued salaries expense
Birch Park Senior Center has a weekly payroll of $12,500. December 31 falls on Wednesday, and Birch Park Senior Center will pay its employees the following Monday (January 5) for the previous full week. Assume Birch Park Senior Center has a five-day workweek and has an unadjusted balance in Salaries Expense of $620,000.
Requirements
1. Record the adjusting entry for accrued salaries on December 31.
2. Post the adjusting entry to the accounts involved, and show their balances after adjustments.
3. Record the journal entry for payment of salaries made on January 5.
Answer:
1. Debit Salaries expense $7,500
Credit Accrued Salaries $7,500
2. Balance in Accrued salaries is $7,500
Balance in Salaries expense is $627,500
3. Debit Salaries expense $5,000
Debit Accrued Salaries $7,500
Credit Cash $12,500
Being entries to recognize the payment of salaries
Explanation:
When an expense is incurred but yet to be paid, it is recognized with a corresponding entry posted into an accrued expense account (this shows the entity has a liability).
If the weekly payroll expense is $12,500 then the daily rate is
= $12,500/5 (for 5 work day week)
= $2,500
If December 31 falls on a Wednesday, it means that an expense (payroll) has been incurred for 3 days. This expense amounts to
= 3 * $2,500
= $7,500
This will be recognized as a debit to Salaries expense and a credit to accrued expense.
The balance in Salaries expense will be
= $620,000 + $7,500
= $627,500
The remaining expense that will be further incurred at the end of the week
= $12,500 - $7,500
= $5,000
When payment is made, the liability is cleared
There are four major traits of entrepreneurs: Passion, Executive intelligence, Customer focus and Tenacity (PECT). Rank the four traits in terms of their importance to becoming a successful entrepreneur. Explain your reasoning behind the #1 rank.
Answer:
Rank
1. Customer Focus
2. Executive Intelligence
3. Passion
4. Tenacity
Customer focus is the #1 rank because an entrepreneur is a person who seizes an opportunity in the market, with the goal of provide goods or services to a customer, and obtain economic benefits.
From this reasoning, we can conclude that the success of an entrepreneur depends on satisfying the needs of the customer.
If customers are unsatisfied, they will not seek the entrepreneur's goods or services, and the entreprenuer will fail no matter how much passion, intelligence, or tenacity is put in the work.
The best ranking according to me, of the traits of entrepreneurs are:
Customer Focus. Passion. Executive Intelligence. Tenacity.The reason why customer focus is the first and most important is that a business is only as good as the number of customers it has. A business without customers is dead.
The best quality of an entrepreneur therefore is to focus on customers such that they can patronize the entrepreneur's business and give them business success.
Find out more on entrepreneurial skills at https://brainly.com/question/26807010.
Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation Multi-Media Inc. Net income $ 30,700 $ 115,000 Sales 336,000 2,370,000 Total assets 485,000 919,000 Total debt 229,000 465,000 Stockholders' equity 256,000 454,000 a-1. Compute return on stockholders’ equity for both firms. (Input your answers as a percent rounded to 2 decimal places.) a-2. Which firm has the higher return? Cable Corporation Multi-Media Inc. b. Compute the following additional ratios for both firms. (Input your Net income/Sales, Net income/Total assets and Debt/Total asset answers as a percent rounded to 2 decimal places. Round your Sales/Total assets answers to 2 decimal places.) Next Visit question mapQuestion 8 of 9 Total8 of 9 Prev
Answer:
Cable Corporation Multi-Media Inc.
Net income $30,700 $115,000
Sales $336,000 $2,370,000
Total assets $485,000 $919,000
Total debt $229,000 $465,000
Stockholders' equity $256,000 $454,000
a-1. Compute return on stockholders’ equity for both firms.
ROE = net income / shareholders' equity
Cable Corporation ROE = $30,700 / $256,000 = 11.99%Multi-Media Inc. ROE = $115,000 / $454,000 = 25.33%a-2. Which firm has the higher return?
Multi-Media Inc.b. Compute the following additional ratios for both firms.
Input your Net income/Sales
Cable Corporation = $30,700 / $336,000 = 9.14%Multi-Media Inc. = $115,000 / $2,370,000 = 4.85%Net income/Total assets
Cable Corporation = $30,700 / $485,000 = 6.33%Multi-Media Inc. = $115,000 / $919,000 = 12.51%Debt/Total asset
Cable Corporation = $229,000 / $485,000 = 47.22%Multi-Media Inc. = $465,000 / $919,000 = 50.60%Sales/Total assets
Cable Corporation = $336,000 / $485,000 = 0.69Multi-Media Inc. = $2,370,000 / $919,000 = 2.58On September 12, Vander Company sold merchandise in the amount of $2,700 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $1,865. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $230 and the cost of the merchandise returned is $160. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is:
Answer:
The journal entry that Vander makes on September 18 is:
Cash $2,421 (debit)
Discount allowed $49 (debit)
Account Receivables : Jepson Company $2,470 (credit)
Explanation:
When Vander Company sales Merchandise :
Cost of Sales $1,865 (debit)
Account Receivables :Jepson Company $2,700 (debit)
Merchandise $1,865 (credit)
Sales Revenue $2,700 (credit)
When Jepson returns some of the merchandise
Merchandise $160 (debit)
Sales Revenue $230 (debit)
Cost of Sales $160 (credit)
Account Receivables :Jepson Company $230 (credit)
When Jepson pays the invoice on September 18
Note : Payment is made within the discount period and thus eligible for the 2% cash discount.
Also not that amount settled is less other returns made by the customer
Cash $2,421 (debit)
Discount allowed $49 (debit)
Account Receivables :Jepson Company $2,470 (credit)
Seafood Inc. purchased the following assets during Year 1: Office furniture $4,000, Delivery truck $25,000, Office building $400,000. What should be reported as the cost basis for MACRS seven-year property
Answer:
Only Office furniture $4,000 should be reported as the cost basis for MACRS seven-year property by Seafood Inc.
Explanation:
Modified Accelerated Cost Recovery System (MACRS) refers to the US depreciation system under which there is a specific asset group with designated period of depreciation into which fixed assets are placed.
There is a depreciation table for all classes of assets which has been published by the Internal Revenue Service and MACRS seven-year property is one of these classes.
MACRS seven-year property implies that each of the assets under this class has seven years useful life, and assets under this class are office furniture and fixtures, agricultural machinery and equipment, natural gas gathering lines, and any asset not assigned to another class.
From the above therefore, only Office furniture $4,000 should be reported as the cost basis for MACRS seven-year property by Seafood Inc.
Panda Company is owned equally by Min, her husband, Bin, her sister Xiao, and her grandson, Han, each of whom hold 100 shares in the company. Under the family attribution rules, how many shares of Panda stock is Min deemed to own
Answer:
300 shares
Explanation:
Based on Family attribution rules the rules often requires that the family attribution should occur between parents, their children and grandchildren, regardless of their age.
But based on the information given in which Panda Company is owned equally by Min, her husband, Bin, her sister Xiao, and her grandson, Han in which each of them hold 100 shares in the company which means Under the family attribution rules we would excludes Min sister Xiao from the shares.
Hence, the shares of Panda stock that Min is deemed to own will be:
Min +husband Bin + her grandson Han =3 individual
100 shares ×3=300 shares
Therefore Under the family attribution rules, 300 shares of Panda stock is what Min is deemed to own
On January 1, 2016, Sheldon Unlimited issues 12%, 15-year bonds payable with a face value of $250, 000. The bonds are issued at 106 and pay interest on June 30 and December 31.
1. Journalize the issuance of the bonds on January 1, 2016.
2. Journalize the semiannual interest payment and amortization of bond premium on June 30, 2016.
3. Journalize the semiannual interest payment and amortization of bond premium on December 31, 2016.
4. Journalize the retirement of the bond at maturity.
Answer:
1. Date Account Title and Explanation Debit Credit
January 1 Cash $265,000
2016 Premium on bonds payable $15,000
Bonds payable $250,000
(To record Issuance of bonds )
2 . Date Account Title and Explanation Debit Credit
June 30 Bond interest expense $14,500
2016 Premium on bonds payable $500
Cash $15,000
(Interest on bond paid and Premium amortized)
3 . Date Account Title and Explanation Debit Credit
Dec 31 Bond interest expense $14,500
2016 Premium on bonds payable $500
Cash $15,000
(Interest on bond paid and Premium amortized)
4. Date Account Title and Explanation Debit Credit
Dec 31 2030 Bonds payable $250,000
Cash $250,000
(Bond redeemed)
Working
Bond issue price (250000 / 100*106) $265,000
Face value $250,000
Premium on bonds payable $15,000
Number of Interest payments (15 years x 2) 30 period
Discount/ premium to be amortized per Half year $500.00
Interest on bond $15,000.00
Interest expense to be recorded $14,500
(15000-500)
What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow
Answer:
$215,000
Explanation:
this question is not complete. here is the full question :
New project analysis-- You must evaluate a proposed spectrometer for the R&D department. The base price is $180,000, and it would cost another $27,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and would be sold after 3 years for $90,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require an $8,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $79,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%.*********** What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow?
the initial cash outlay = cost of the spectrometer + net working capital
cost of the spectrometer = base price + cost of modification
$180,000 + $27,000 = $207,000
$207,000 + $8,000 = $215,000
The situations presented here are independent of each other.
For each situation, prepare the appropriate journal entry for the redemption of the bonds.
a) Pelfer Corporation redeemed $140,000 face value, 9% bonds on April 30, 2014, at 101. The carrying value of the bonds at the redemption date was $126,500. The bonds pay annual interest, and the interest payment due on April 30, 2014, has been made and recorded.
b) Youngman, Inc., redeemed $170,000 face value, 12.5% bonds on June 30, 2014, at 98. The carrying value of the bonds at the redemption date was $184,000. The bonds pay annual interest, and the interest payment due on June 30, 2014, has been made and recorded.
Answer:
a) Pelfer Corporation redeemed $140,000 face value, 9% bonds on April 30, 2014, at 101. The carrying value of the bonds at the redemption date was $126,500. The bonds pay annual interest, and the interest payment due on April 30, 2014, has been made and recorded.
Dr Bonds payable 140,000
Dr Loss on retirement of bonds 14,900
Cr Discount on bonds payable 13,500
Cr Cash 141,400
Since the carrying value of the bonds was less than the redemption value, the company will incur in a loss.
b) Youngman, Inc., redeemed $170,000 face value, 12.5% bonds on June 30, 2014, at 98. The carrying value of the bonds at the redemption date was $184,000. The bonds pay annual interest, and the interest payment due on June 30, 2014, has been made and recorded.
Dr Bonds payable 170,000
Dr Premium on bonds payable 14,000
Cr Cash 156,400
Cr Gain on retirement of bonds 27,600
Since the carrying value of the bonds was more than the redemption value, the company will incur in a gain.
On May 3, Zirbal Corporation purchased 7,000 shares of its own stock for $49,000 cash. On November 4, Zirbal reissued 1,050 shares of this treasury stock for $8,400. Prepare the May 3 and November 4 journal entries to record Zirbal’s purchase and reissuance of treasury stock.
Answer and Explanation:
The Journal entries are shown below:-
1. Treasury Stock-at cost Dr, $49,000
To Cash $49,000
(Being treasury stock is recorded)
Here we debited the treasury stock-at cost as it is purchased and we credited the cash as it decrease the assets
2. Cash Dr, $8,400
To Treasury Stock - at cost $7,350
To Paid in capital -Treasury stock $1,050 ($8,400 - $7 × 1,050)
(Being reissue of treasury stock is recorded)
Here we debited the cash as it increase the assets and we credited the Treasury Stock - at cost and Paid in capital -Treasury stock as the re-issuance of the treasury stock is done.
A company that wanted to increase its capital through equity financing would most likely get involved in which of the following markets
Answer:
Stock market
Explanation:
Equity financing is one of the ways that a public listed company can use to raise finances by issuing and selling shares to investors while the investors take ownership interest on the basis of shares owned.
After the initial public offering where the company sells shares to the general public , the secondary market , also known as the stock market is the place where the investors and stock brokers meet to buy shares at either an agreed price or the prevailing market price.
This market is regulated by the government authority.
Accounts Receivable has a balance of $5,000, and the Allowance for Bad Debts has a credit balance of $420. The allowance method is used. What is the net realizable value of Accounts Receivable after a $140 account receivable is written off?
Answer:
Net realizable value of Accounts Receivable is $4,580
Explanation:
Balance in allowance for uncollectible account= Balance before write off - Account written off
=$420 - $140
=$280
Net realizable value of accounts receivable is:
Particular Amount
Accounts Receivable balance $5000
Less: Account written off $140
Balance after write off $4860
Less: Allowance for uncollectible
account from step 1 $280
Net realizable value $4,580
Easter Egg and Poultry Company has $1,040,000 in assets and $649,000 of debt. It reports net income of $120,000. a. What is the firm’s return on assets? (Enter your answer as a percent rounded to 2 decimal places.) b. What is its return on stockholders’ equity? (Enter your answer as a percent rounded to 2 decimal places.) c. If the firm has an asset turnover ratio of 4 times, what is the profit margin (return on sales)? (Enter your answer as a percent rounded to 2 decimal places.)
Answer:
A. 11.54%
B. 30.69%
C. 2.88
Explanation:
Return on assets = net income/ total assets
= $120,000 / $1,040,000 = 0.115385 = 11.54%
Return on equity = net income/ total equity
Total equity = total assets - liabilities = $1,040,000 - $649,000 = $391,000
$120,000 / $391,000 = 0.3069 = 30.69%
Profit margin = gross profit/ revenue
Asset turnover = revenue / total asset
4 = revenue / $1,040,000
Revenue = $4,160,000
Profit margin = $120,000 / $4,160,000 = 0.0288 = 2.88
I hope my answer helps you