Answer:
about 1.24 million dollars
Explanation:
Account value is multiplied by 1.06 each year, so after 45 years, it has been multiplied by 1.06^45. The value is ...
$90,000 × 1.06^45 = $1,238,814.97
Evans Inc. had current liabilities at April 30 of $69,400. The firm's current ratio at that date was 1.7. Required: Calculate the firm's current assets and working capital at April 30. Assume that management paid $14,300 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made. (Round "Current ratio" answer to 2 decimal places.) Identify the changes, if any, to working capital and the current ratio that would be caused by the April 29 paym
Answer:
See explanation below
Explanation:
Given:
Current liabilities at April 30 of $69,400
Current ratio = 1.7
a) Calculate the firm's current assets and working capital at April 30:
Use the formula below to find the firm's current assets:
current ratio= current asset/current liability
current asset = current ratio × current liability
current asset = 1.7 × $69,400
Current asset = $117,980
For working capital:
Working capital= current assets-current liability
= $117,980 - $69,400
= $48,580
Working capital = $48,580
b) Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made:
New current assets = $117,980 + $14,300 = $132,280
New current liability = $69,400 + $14,300 = $83,700
Working capital = $132,280 - $83,700 = $48,580
Current ratio = 132,280/83700 = 1.58
c) There is no change in the working capital.
The current ratio will decrease by 0.12 (1.7 - 1.58) due to payment on 29th April
After examining a planning gap, firms typically attempt to decide if the time horizon should be increased or decreased. perform a SWOT analysis with their major competitor as the focus. use statistical trend analysis to interpret the results. exploit a positive deviation and correct a negative deviation. adopt a product-market focus.
Answer: exploit a positive deviation and correct a negative deviation
Explanation:
A planning gap is the difference that occurs in revenue or profits gap when current strategies are not changed. The gap analysis can help in the identification of gaps in the market. Therefore, when an organization compares its forecast profits to the company's desired profits, the planning gap will be shown.
When the actual results are lesser than the planned result, the organization would have to fill the gap with a marketing program which has been revised and sometime with new goals. Therefore, the firm can then decide whether to exploit wither a positive deviation and correct a negative deviation.
ACNielsen conducts weekly surveys of television viewing throughout the United States. The ACNielsen statistical ratings indicate the size of the viewing audience for each major network television program. Rankings of the television programs and of the viewing audience market shares for each network are published each week.
A. What is the ACNielsen organization attempting to measure?
B. What is the population?
C. Why would a sample be used for this situation?
D. What kinds of decisions or actions are based on the ACNielsen studies?
Answer: The answers are given below
Explanation:
A. What is the ACNielsen organization attempting to measure?
ACNielsen organization attempting to measure the Television Rating Point of the major television network. The TRP helps us to know the programmes that the viewers watch the most.
B. What is the population?
The population will have to be the viewers who watch the programmes and the television networks in the United States.
C. Why would a sample be used for this situation?
Sampling is when few people are selected from a larger population in order to carry out an experiment. In this situation, sampling is required because gathering data from the larger population will be time consuming and costly.
D. What kinds of decisions or actions are based on the ACNielsen studies?
A new strategy can be devised by the television networks of they know the number of people or the particular age group who normally watches the programmes, then they can tune their strategy towards that direction.
The owner’s initial investment consists of $38,600 cash and $45,980 in land. The company’s $18,550 equipment purchase is paid in cash. The accounts payable balance of $9,060 consists of the $3,830 office supplies purchase and $5,230 in employee salaries yet to be paid. The company’s rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $14,620 consulting fees earned. Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
Missing information:
ERNST CONSULTING
Income Statement
October 31. 202x
Revenues:
Consulting fees earned $15,600
Total revenues $15,600
Expenses:
Salaries expense $7,450
Rent expense $4,070
Telephone expense $810
Miscellaneous expenses $630
Total expenses $12,960
Net income $2,640
Cash dividends $2,530
Answer:
Ernst Consulting
Statement of Cash Flows
October 31, 202x
Cash flows from operating activities:
Cash received from customers $0
Cash paid for:
Rent expense -$4,070
Telephone expense -$810
Miscellaneous expenses -$630
Total cash flow from operating activities -$5,510
Cash flows from investing activities:
Cash paid for equipment -$18,550
Total cash flows from investing activities -$18,550
Cash flows from financing activities:
Cash investment from stockholders $38,600
Cash paid for dividends -$2,530
Total cash flows from financing activities $36,070
Net cash increase $12,010
Cash balance October 1, 202x $0
Cash balance October 31, 202x $12,010
A $20,000 loan is to be amortized for 10 years with quarterly payments of $699.44. If the interest rate is 7%, compounded quarterly, what is the unpaid balance immediately after the sixth payment
Answer:
The answer is "17809.46"
Explanation:
Given:
P= $20,000
quarterly payment k= $699.44
interest rate quarterly r= 7%
[tex]r=\frac{7}{400}\\\\r= 0.0175[/tex]
n=6
Formula:
[tex]\ unpaid \ balance = P(1+r)^n-K\times \frac{(1+r)^n-1}{r}[/tex]
[tex]=20,000(1+0.0175)^6-699.44\times \frac{(1+0.0175)^6-1}{0.0175}\\\\=20,000(1.0175)^6-699.44\times \frac{(1.0175)^6-1}{0.0175}\\\\=20,000\times 1.10970235-699.44\times \frac{1.10970235-1}{0.0175}\\\\=22,194.047-699.44 \times \frac{0.10970235}{0.0175}\\\\=22,194.047-699.44 \times 6.26870571\\\\=22,194.047-4384.58352\\\\=17809.4635\\\\[/tex]
The final answer is "[tex]\bold{= 17809.46}\\[/tex]".
1- What are the goals of the Deposit Insurance Corporation? 2- what is the Income tax brackets? Thank you in advance. Regards.
Answer:
The deposit insurance corporation created in 1933 is responsible for insuring the deposits of the US banks in case of emergency. It is an independent federal agency. It was created to keep the financial system stable by promoting sound banking practises. It insures deposit amount upto $250,000 if the depositor is a member firm. The consumers should confirm whether heir institution is FDIC insured or not. Its main objective is to avoid "Great Depression " like situation by preventing bank runs.
Tax bracket is a range of income that is taxable. Tax brackets follow a progressive tax system in which the tax progressively increases as a persons income grows. People with low income either fall into low tax brackets or don't have to pay tax at all.
which is extraordinarily large inflation in prices. At the peak of the hyperinflation, prices rose 26 comma 000% per month. At this rate, by what percentage would prices have risen in 1 year? In 1 day? (Assume 30 days per month.) g
Answer:
To identify inflation rates in a monthly hyperinflationary process of 26,000 percent inflation, we must multiply that number by 12 months to obtain annual inflation, and divide it by 30 to obtain daily inflation.
Thus, the annual inflation of the country arises from calculating 26,000 x 12, which results in an annual inflation of 312,000 percent, with which a product that at the beginning of the year would cost $ 1 would cost $ 312,000 a year later.
In turn, to identify daily inflation, you have to divide 26,000 / 30, obtaining a daily inflation of 866.6 percent, which implies that a product with a value of $ 1, a day later would be costing $ 866.6.
Balt Company maintains a standard cost system. Last period, Balt spent $25,000 during the period to purchase 3,000 pounds of material H. The company used 5,000 pounds of Material H to produce 800 units of Product C8. The company has established a standard of 7 pounds of Material H per unit of C8, at a price of $7.50 per pound of material. The debit to direct materials control account isa. 25,000b. 22,500c. 41,667d. 37,500
Answer:
Balt CompanyDirect Materials Control Account:
Debit to the direct materials control account is
d. 37,500
Explanation:
a) Calculation:
Since 5,000 pounds were used at a standard price of $7.50, a debit to the direct materials control account would be $37,500 (5,000 x$7.50).
b) The direct materials control account is a memorandum account where the costs of direct materials are recorded to serve as a check and point of reconciliation with the subsidiary ledger of direct materials account. This debit shows the standard costs at actual production that is expensed for the period or during the process.
A book which cost $300.00 was sold
For $240.00. What was the loss
percentage
Answer:
20%
Explanation:
300-240= 60
60÷300×100%= 20%.
If a business using the specific identification method of inventory has two items on hand at $300 each and purchases four items at $400 each, what is the value of inventory if two of the $300 items are sold
Answer:
The value of inventory is $1600.
Explanation:
The business has two inventory on hand that cost $300 each so total value of inventory = 2 × 300 = $600
The value of four items at $400 each = 4 × 400 = $1600
Total number of items = 2 + 4 = 6
Total value of 6 items = 600 + 1600 = $2200
The value of sold inventory = 2 × 300 = $600
The value of inventory = total value of inventory - The value of sold inventory
The value of inventory = $2200 - $600
The value of inventory = $1600
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.
Item Classification
1. Notes payable (due in 13 to 24 months)
2. Notes payable (due in 6 to 11 months).
3. Notes payable (mature in five years).
4. Current portion of long-term debt.
5. Notes payable (due in 120 days).
6. FUTA taxes payable.
7. Accounts receivable.
8. Sales taxes payable.
9. Salaries payable.
10. Wages payable.
Answer:
1. Notes payable (due in 13 to 24 months) - Long term Liability
This note will be owed for a period of more than 1 year. When this happens the note is said to be Long term.
2. Notes payable (due in 6 to 11 months). - Current Liability
As this note is due in a period less than a year, it is considered a current Liability.
3. Notes payable (mature in five years). - Long term Liability
This is a note that matures in a period more than a year making it a Long term Liability.
4. Current portion of long-term debt. Current Liability.
The current portion is due to be paid within the period so it is short term and hence a Current Liability.
5. Notes payable (due in 120 days). Current Liability.
Due in less than a year.
6. FUTA taxes payable. Current Liability
Taxes are generally considered a short term Liability until they are paid.
7. Accounts receivable. N (Not a Liability)
Accounts Receivable are Assets.
8. Sales taxes payable. Current Liability.
Taxes are generally considered a short term Liability until they are paid.
9. Salaries payable. Current Liability.
These salaries are owed for the period but have not been paid making them Current.
10. Wages payable. Current Liability.
Same as above. They are owed for the period but not yet paid.
The identification of the following items on the balance sheet of the company are:
Item Classification
1. Notes payable (due in 13 to 24 months) L
2. Notes payable (due in 6 to 11 months) C
3. Notes payable (mature in five years) L
4. Current portion of long-term debt C
5. Notes payable (due in 120 days) C
6. FUTA taxes payable C
7. Accounts receivable C
8. Sales taxes payable C
9. Salaries payable C
10. Wages payable C
Current liabilities are the payables that the company must settle within its operating cycle of 12 months. Long-term liabilities are payables settled after the operating cycle, say, from 13 months and above.
Learn more: https://brainly.com/question/24165866
3. The impossible trinity Suppose the government of Iraq is deciding what kind of monetary policy and exchange rate regime to choose. The government wants to ensure stability in international trade and investment by pegging the Iraqi dinar to the U.S. dollar. Which of the following policy choices will achieve this goal? Check all that apply. Controlling the interest rate in the country without imposing restrictions on foreign exchange trading Controlling the interest rate in the country and imposing restrictions on foreign exchange trading Maintaining capital controls with no independent monetary policy
Answer:
Correct Answer is (B)
Explanation:
We look at the objectives the government has in mind to achieve;
- stability in international trade
- stability in investment
Which of the listed policies will achieve these goals?
- the tool here used to control international trade is foreign exchange trading
- the tool used to control investment is interest rate
To achieve stability in these 2 indicators, both tools should be controlled. Thus the monetary policy & exchange rate regime to choose here is:
Controlling the interest rate in the country and imposing restrictions on foreign exchange trading.
Option (C) won't suffice because an independent monetary policy is necessary.
Laser World reports net income of $640,000. Depreciation expense is $49,000, accounts receivable increases $10,000, and accounts payable decreases $29,000. Calculate net cash flows from operating activities using the indirect method.
Answer:
$650,000
Explanation:
The computation of net cash flows from operating activities using the indirect method is shown below:-
Cash Flows from Operating Activities
Net income $640,000
Adjustment made
Add: Depreciation expense $49,000
Less: Increase in accounts receivable ($10,000)
Less: Decrease in accounts payable ($29,000)
Net cash flows from operating activities $650,000
The positive amount reflects the cash inflow and the negative amount reflects the cash outflow
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 405,000 Beginning merchandise inventory $ 27,000 Purchases $ 270,000 Ending merchandise inventory $ 13,500 Fixed selling expense $
Missing information:
Fixed administrative expense $ 16,200 Variable selling expense $ 20,250 Variable administrative expense $ ? Contribution margin $ 81,000 Net operating income $ 24,300
1. Prepare a contribution format income statement.
2. Prepare a traditional format income statement.
3. Calculate the selling price per unit.
4. Calculate the variable cost per unit.
5. Calculate the contribution margin per unit.
Answer:
First we must determine cost of goods sold = $27,000 + $270,000 - $13,500 = $283,500
now we must find total variable costs = total sales - contribution margin = $405,00 - $81,000 = $324,000
variable administrative expenses = total variable costs - COGS - variable selling expense = $324,000 - $283,500 - $20,250 = $20,250
1. Prepare a contribution format income statement.
Total sales $405,000
Cost of goods sold $283,500
Gross contribution margin $121,500
Variable selling expense $20,250
Variable adm. expense $20,250
Contribution margin $81,000
Fixed period expenses:
Fixed selling expense $40,500Fixed administrative expense $16,200Net operating income $24,300
2. Prepare a traditional format income statement.
Total sales $405,000
Cost of goods sold $283,500
Gross profit $121,500
Operating expenses:
Selling expenses $60,750
Adm. expenses $36,450
Net operating income $24,300
3. Calculate the selling price per unit.
$4054. Calculate the variable cost per unit.
$3245. Calculate the contribution margin per unit.
$81The next dividend payment by Savitz, Inc., will be $1.68 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $32 per share, what is the required return
Answer:
The answer is 11.25%
Explanation:
Solution
Given that:
The next step to take is to calculate the required rate of return which is shown below:
The required rate = D₁/P₀₀ + g
Thus,
$1.68/$32 + 0.06%
=0.0525 + 0.06
=0.1125 or 11.25%
Therefore, the required rate of return is 11.25%
company is considering the purchase of a new piece of equipment for $90,000. Predicted annual net cash inflows from the investment are $36,000 (Year 1), $30,000 (Year 2), $18,000 (Year 3), $12,000 (Year 4), and $6,000 (Year 5). The average operating income generated from the investment over its 5-year life is $20,400. The cash payback period is 3.5 years true false
Answer:
The cash payback period is 3.5 years. The answer is True.
Explanation:
According to the given data we have the following:
Year Cash flows Cumulative Cash flows
0 (90,000) (90,000)
1 36,000 (54,000)
2 30,000 (24,000)
3 18,000 (6000)
4 12000 6000
5 6000 12,000
To calculate the cash payback period we use the following formula:
Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash flows at that period/Cash flow after that period).
Payback period=3+($6,000/$12,000)
Payback period=3.5 years
The cash payback period is 3.5 years. True
what is break even point?
Answer:
The break-even point in economics, business—and specifically cost accounting—is the point at which total cost and total revenue are equal, i.e. "even". There is no net loss or gain, and one has "broken even", though opportunity costs have been paid and capital has received the risk-adjusted, expected return.
Explanation:
At the beginning of the period, the Grinding Department budgeted direct labor of $19,800 and property tax of $51,000 for 1,100 hours of production. The department actually completed 1,500 hours of production.
Required:
Determine the budget for the department, assuming that it uses flexible budgeting.
Answer:
Budget for the Grinding department is $78,000, assuming that it uses flexible budgeting.
Explanation:
Note: Fixed cost remain constant at any level of production
Budgeted Direct labor at 1,100 hours of production is
= Budgeted direct labor / hours
= 19,800 / 1,100
=$18 per hour
Direct labor cost at 1,500 hours of production is:
=1,500 * $18
=$27,000
Budget for the Grinding department at 1,500 hour of production is:
=Direct labor cost + Property tax
=$27,000 + $51,000
=$78,000
Which of the following is useful to combine the data of different segments using different software for the purpose of creating companywide budgets? A. budget creation manual B. budget management software C. financial analysis software D. accounting development manual
Answer:
B. budget management software
Explanation:
A budget management software would be the best option to combine different segments of data to create a companywide budget.
This is because one of the specific purposes of budget management software is to merge several budgets (for example, the budgets of a company's divisions) into a single one, larger budget (the companywide budget).
To create a bulleted list, Nathan should select the list first. Next, he should navigate to the of the Word window. After that, he should go to the command group. Then, he should click the picture that shows .
Answer: 3 tiny dots with tiny lines next to them.
Explanation: Because that is the icon you select to insert bullet points or a number system.
To illustrate the law of large numbers (see also Exercise 5.54 on page 172), use the normal approximation to the binomial distribution to determine the probabilities that the proportion of heads will be anywhere from 0.49 to 0.51 when a balanced coin is flipped
(a) 100 times;
(b) 1,000 times;
(c) 10,000 times.
Answer:
(a) 0.1585
(b) 0.4713
(c) 0.9545
Explanation:
The random variable X can be defined as the number of heads.
The coin provided is balanced, i.e. P (H) = P (T) = 0.50
The outcome of tossing the coin are: (H and T). Each of these outcomes are independent of each other.
The random variable X thus follows a Binomial distribution with probability of success as 0.50.
For a large sample a Normal approximation to binomial can be applied to approximate the distribution of p if the following conditions are satisfied:
1. np ≥ 10
2. n(1 - p) ≥ 10
(a)
n = 100
Check the conditions as follows:
[tex]np=100\times 0.50=50>10\\\\n(1-p)=100\times(1-0.50)=50>10[/tex]
Thus, a Normal approximation to binomial can be applied.
So, [tex]p\sim N(0.50,\ 0.05 )[/tex]
Compute the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 as follows:
[tex]P(0.49<p<0.51)=P(\frac{0.49-0.50}{0.05}<\frac{p-\mu}{\sigma}<\frac{0.51-0.50}{0.05})[/tex]
[tex]=P(-0.20<Z<0.20)\\\\=P(Z<0.20)-P(Z<-0.20)\\\\=0.57926-0.42074\\\\=0.15852\\\\\approx 0.1585[/tex]
Thus, the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 when a balanced coin is flipped 100 times is 0.1585.
(b)
n = 1000
Check the conditions as follows:
[tex]np=1000\times 0.50=500>10\\\\n(1-p)=1000\times(1-0.50)=500>10[/tex]
Thus, a Normal approximation to binomial can be applied.
So, [tex]p\sim N(0.50,\ 0.016 )[/tex]
Compute the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 as follows:
[tex]P(0.49<p<0.51)=P(\frac{0.49-0.50}{0.016}<\frac{p-\mu}{\sigma}<\frac{0.51-0.50}{0.016})[/tex]
[tex]=P(-0.63<Z<0.63)\\\\=P(Z<0.63)-P(Z<-0.63)\\\\=0.73565-0.26435\\\\=0.4713[/tex]
Thus, the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 when a balanced coin is flipped 1000 times is 0.4713.
(c)
n = 10,000
Check the conditions as follows:
[tex]np=10000\times 0.50=5000>10\\\\n(1-p)=10000\times(1-0.50)=5000>10[/tex]
Thus, a Normal approximation to binomial can be applied.
So, [tex]p\sim N(0.50,\ 0.005)[/tex]
Compute the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 as follows:
[tex]P(0.49<p<0.51)=P(\frac{0.49-0.50}{0.005}<\frac{p-\mu}{\sigma}<\frac{0.51-0.50}{0.005})[/tex]
[tex]=P(-2<Z<2)\\\\=P(Z<2)-P(Z<-2)\\\\=0.97725-0.02275\\\\=0.9545[/tex]
Thus, the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 when a balanced coin is flipped 10,000 times is 0.9545.
For a business credit card, most companies that issue credit, including Visa and Mastercard, specifically state their liability policies:
Only cover the first $50.00 of liability
Cover up to $500 of liability
Are the same as their business card accounts
Do not apply to business card accounts
Answer: Cover up to $500 of liability
Explanation:
When one suspect that there has been unauthorized transactions in ones accounts which could be due to fraud, such business or person can make a complaint as soon as possible.
As soon as the report is made, the person is no longer in charge of the unauthorized use of such card. In a case whereby the loss is reported within two days, the liability is limited to $50 but when the report is made within 60 days after ones statement has been sent to the person or business, this may lead to a liability of $500.
Cover upto liability of $500. If the report is made within 60 days of receiving statement that shows fradulent transactions. If it is not reported within 60 days then the liability is unlimited.
The effect of a transaction between two individuals on a third party who has not consented to or played any role in the carrying out of that transaction. This is called an ______________.
Answer:
Externality
Explanation:
An externality is a loss or benefit generated by a producer not caused or earned directly by the producer. An externality may be positive or negative , and may result whether from the production or consumption of a product or service
Therefore in the given situation, it is mentioned that the two transaction effect between the person with respect to the third party that is not agreed for the transaction i.e to carrying out So this situation describes externality
ete is a California resident who is serving in California when he is transferred to Virginia under Temporary Duty (TDY) assignment. His salary is $3,000 per month. Pete is transferred on April 1 of the current year. How much of his income is taxable in California
Answer:
$36,000
Explanation:
Temporary duty can't change anything when someone is domiciled in the state and a responsible resident of the state, therefore his whole income would be taxable as usual whether he is in the state or out of state.
Workings:
Financial year= 12 months
Monthly salary = $3,000
Taxable income= $3,000 x 12 months
Taxable income = $36,000
Justin Co. recently purchased materials from a new supplier at a very attractive price. The materials were found to be of poor quality, and the company's laborers struggled significantly as they shaped the materials into finished product. In a desperation move to make up for some of the time lost, the manufacturing supervisor brought in more-senior employees from another part of the plant. Which of the following variances would have a high probability of arising from this situation?
a. Both Material Price variance, favorable and Labor rate variance, favorable
b. Material price variance, unfavorable.
c .Labor rate variance, unfavorable.
d. Material quantity variance, favorable.
e. Labor efficiency variance, favorable.
Answer:
C
Explanation:
more labor expense bringing in extras workers. Drives down the profits.
Jason Rodriguez works as a waiter in a Houston restaurant. His boss overhears Jason telling a co-worker during a break period that he thinks that the president ought to be impeached. The boss, a big supporter of the president, fires Jason on the spot. Jason thinks the boss violated his freedom of speech. Would you expect that Jason would be able to get his job back on that basis?
Answer:
No
Explanation:
It is mentioned in the question that the boss who is a big supporter of the president fired Jason, who works as a waiter in the restaurant
So based on the given situation, the first amendment is applied for the government employees as it become the first priority for everyone, not for the private employees
Hence, the answer is no
ldentify whether each statement in the following statement is true or false.
a. Businesses that do not adopt a differentiation, low-cost leadership, or focus strategy tend to be more successful than businesses that do adopt these strategies.
b. Employee abilities to create innovative products are critical for companies that adopt a low-cost leadership strategy.
c. Companies that use a focus strategy have narrow buyer groups.
Answer:
The answer is (a) False (b) False (c) True
Explanation:
Solution
(a)Businesses that do not acquire a differentiation,focus strategy, or low-cost leadership, is liable to be more successful than businesses that do adopt these strategies - False because Companies or business does not necessarily need to adopt differentiation methods or low cost leadership, they might have their own market strategy to succeed.
(b) Employee abilities to develop innovative products are important for companies that use a low-cost leadership strategy - False .
(c) Companies that use a focus strategy have narrow buyer groups -Focus strategy : This strategy is used when a company knows its segment and has products that can competitively satisfies its needs.In this case it is true.
Planet Food is currently operating at full capacity. The profit margin and the dividend payout ratio are held constant. Net working capital and fixed assets vary directly with sales. Sales are projected to increase by 6 percent. What is the external financing need
Answer:
The answer is $30
Note: Kindly find an attached copy or image of the complete question given below
Sources: I researched the complete question from Quizlet
Explanation:
Solution
Given that
The total assets projected = $8,850 × 1.06
= $9,381.00
Projected accounts payable = $1,300 × 1.06
= $1,378.00
Projected retained earnings = $3,810 + ($399 × 1.06)
= $4,232.94
Thus
External financing need = $9,381.00 - $1,378.00 -$1,640 -$2,100 - $4,232.94 = $30
Therefore the external financing need is $30.
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. The Tannenhill Company data are expressed in dollars. The electronics industry averages are expressed in percentages.
1 Tannenhill Company Electronics Industry Average
2 Sales $4,000,000 100%
3 Cost of goods sold $2,120,000 60%
4 Gross profit $1,888,000 40%
5 Selling expenses $1,080,000 24%
6 Administrative expenses $640,000 14%
7 Total operating expenses $1,720,000 38%
8 Income from operations $160,000 2%
9 Other income $120,000 3%
10 $280,000 5%
11 Other expense $80,000 2%
12 Income before income tax $200,000 3%
13 Income tax expense $80,000 2%
14 Net income $120,000 1%
A. Prepare a common-size income statement comparing the results of operations for Tannenhill Company with the industry average. Enter all amounts as positive numbers.
B. As far as the data permit, comment on significant relationships revealed by the comparisons. As far as the data permit, comment on significant relationships revealed by the comparisons.
Answer:
Explanation:
Tannenhill % Industry
Sales 4,000,000 100 100
Cost of goods 2,120,000 53 60
Gross profit 1,880,000 47 40
Selling Expenses 1,080,000 27 24
Admin Expenses 640,000 16 14
Operating Expenses 1,720,000 43 38
Operating profit 160,000 4 2
Other income 120,000 3 3
Total income 280,000 7 5
Other Expenses 80,000 2 2
Income before tax 200,000 5 3
Income tax 80,000 2 2
Net Income 120,000 3 1
B)
Despite the fact that the selling and admin expenses pf Tannenhill was higher than the industry average , it had a better performance in the cost of goods management which in effect caused Tannenhill to record a greater net income percentage compared to the industry performance.
The other income and expenses was the same with the industry average , hence no impact on the overall performance.
Testbank Multiple Choice Question 96 On June 30, 2021, when Bonita Industries's stock was selling at $66 per share, its capital accounts were as follows: Capital stock (par value $50; 58000 shares issued) $2900000 Premium on capital stock 580000 Retained earnings 4150000 If a 100% stock dividend were declared and distributed, capital stock would be $3480000. $5800000. $7656000. $2900000.
Answer:
$5800000
Explanation:
Stock dividend refers to a form of dividend payment whereby additional stock shares of the company are distributed to shareholders instead of paying the shareholders in cash.
Stock dividends are also known as stock spills and it increases the common stock par value by its declared percentage.
Since the a 100% stock dividend were declared and distributed, this would increase the common stock as follows:
Increase in common stock = $2,900,000 * 100% = $2,900,000.
Therefore, the new common stock would be:
New common stock = Existing common stock + Increase in common stock = $2,900,000 + $2,900,000 = $5,800,000.
Therefore, If a 100% stock dividend were declared and distributed, capital stock would be $5,800,000.