Answer:
Explanation:
In this specific scenario, the message that you are composing to your manager should be sincere, professional, and have a valid reason for why the report was not turned in. Aside from the note, it should also have the finished report attached to it, otherwise the manager will think that the note is an empty excuse which will be meaningless if the report is still overdue.
Pace corporation acquired 100 percent of spin company's common stock on January 1, 20X9. Balance sheet data for the two companies immediately following the acquisition follow:
Item Pace Corporation Spin Company
Cash $30,000 $25,000
Accounts Receivable 80,000 40,000
Inventory 150,000 55,000
Land 65,000 40,000
Buildings and Equipment 260,000 160,000
Less: Accumulated Depreciation (120,000) (50,000)
Investment in Spin Company Stock 150,000
Total Assets $615,000 $270,000
Accounts Payable $45,000 $33,000
Taxes Payable 20,000 8,000
Bonds Payable 200,000 100,000
Common Stock 50,000 20,000
Retained Earnings 300,000 109,000
Total Liabilities and Stockholders’ Equity $615,000 $270,000
At the date of the business combination, the book values of Spin's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, and land, which had a fair value of $50,000. The fair value of land for Pace Corporation was estimated at $80,000 immediately prior to the acquisition.
1. Based on the preceding information, at what amount should total land be reported in the consolidated balance sheet prepared immediately after the business combination?
a. $130,000
b. $105,000
c. $115,000
d. $120,000
2. Based on the preceding information, what amount of total assets will appear in the consolidated balance sheet prepared immediately after the business combination?
a. $756,000
b. $735,000
c. $750,000
d. $642,000
3. Based on the preceding information, what is the differential associated with the acquisition?
a. $15,000
b. $21,000
c. $6,000
d. $10,000
4. Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination?
a. $0
b. $21,000
c. $6,000
d. $15,000
5. Based on the preceding information, what amount of liabilities will be reported in the consolidated balance sheet prepared immediately after the business combination?
a. $615,000
b. $406,000
c. $300,000
d. $265,000
Answer:
Pace Corporation and Spin Company
1. Land should be reported in the consolidated balance sheet as
a. $130,000
2. Total assets:
b. $735,000
3. The differential associated with the acquisition:
b. $21,000
4. Goodwill
b. $21,000
5. Amount of liabilities in the consolidated balance sheet:
b. $406,000
Explanation:
a) Data:
Item Pace Spin
Corporation Company
Cash $30,000 $25,000
Accounts Receivable 80,000 40,000
Inventory 150,000 55,000
Land 65,000 40,000
Buildings and Equipment 260,000 160,000
Less: Accumulated Depreciation (120,000) (50,000)
Investment: Spin Company Stock 150,000
Total Assets $615,000 $270,000
Accounts Payable $45,000 $33,000
Taxes Payable 20,000 8,000
Bonds Payable 200,000 100,000
Common Stock 50,000 20,000
Retained Earnings 300,000 109,000
Total Liabilities and Stockholders’
Equity $615,000 $270,000
b) Consolidated Balance Sheets
Item Pace Spin Total
Corporation Company Group
Cash $30,000 $25,000 $55,000
Accounts Receivable 80,000 40,000 120,000
Inventory 150,000 60,000 210,000
Land 80,000 50,000 130,000
Buildings and Equipment 260,000 160,000 420,000
Less: Accumulated
Depreciation (120,000) (50,000) (170,000)
Investment:
Spin Company Stock 150,000 0
Goodwill 21,000
Total Assets $630,000 $285,000 $786,000
Accounts Payable $45,000 $33,000 $78,000
Taxes Payable 20,000 8,000 28,000
Bonds Payable 200,000 100,000 300,000
Common Stock 50,000 20,000 50,000
Retained Earnings 300,000 109,000 300,000
Assets Revaluation 15,000 15,000 30,000
Total Liabilities and Stockholders’
Equity $630,000 $285,000 $786,000
c) Differential on acquisition = investment (of subsidiary) - net assets
= $150,000 - ($270,000 - 141,000) = $21,000
Digby's turnover rate for this year is 6.29%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Digby plans to spend an additional $500 beyond the extra amount above the $1000 recruiting base it spent this year. The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost be for Digby next year?
Answer:
$208,443
Explanation:
The computation of total recruiting cost be for Digby next year is shown below:-
[tex]R_1 = (B + R_o + A)\times N[/tex]
as
B indicates baseline spend = $1,000
[tex]R_o[/tex] indicates current year recruits spend = $5,000
A indicates additional next year spend = $500
N indicates the number of new employees for next year = Total employees × turnover rate
N = 510 × 0.0628787
= 32.0681538
now we will put the values into the above formula.
R1 = ($1,000 + 5000 + $500) × 32.0681538
= $208,443
The total recruiting cost for Digby next year will be $208443.
Based on the information given, the calculation for the total recruiting cost will be:
= (B + To + A) × N
where,
B = $1000
Ro = $5000
A = $500
N = 510 × 0.06288 = 32.068
Now, the total recruiting cost will be:
= (B + To + A) × N
= (1000 + 5000 + 500) × 32.068
= 6500 × 32.068
= 208433
Therefore, the total recruiting cost for Digby next year will be $208443.
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Which of the following is a true statement based upon the principle of the time value of money?
A. It is always best to receive money at a later point in time rather than an earlier point in time.
B. Money loses value over time if not used.
C. Money increases in value as time passes so long as it is not invested
D. The value of money does not increase or decrease as time passes.
Answer:
D.The value of money does not increase or decrease as time passes.
The value of money does not increase or decrease as time passes is a true statement based upon the principle of the time value of money. Therefore, the option D holds true.
What is the significance of time value of money?The principle of time value of money can be referred to or considered as a principle, which states that the value of money at a later date is lesser than at a present date, as the money has an earning potential in the interval of the due time.
According to this principle, it can easily be concluded that the money does not increase or decrease in its value with the passage of time, rather it is worth more in the present than at a future date because of the earning potent that the money possesses.
Therefore, the option D holds true and states regarding the significance of the time value of money.
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Exhibit 15.1 Zorn Corporation is deciding whether to pursue a restricted or relaxed working capital investment policy. The firm's annual sales are expected to total $4,400,000, its fixed assets turnover ratio equals 4.0, and its debt and common equity are each 50% of total assets. EBIT is $150,000, the interest rate on the firm's debt is 10%, and the tax rate is 40%. If the company follows a restricted policy, its total assets turnover will be 2.5. Under a relaxed policy its total assets turnover will be 2.2. Refer to Exhibit 15.1. Assume now that the company believes that if it adopts a restricted policy, its sales will fall by 15% and EBIT will fall by 10%, but its total assets turnover, debt ratio, interest rate, and tax rate will all remain the same. In this situation, what's the difference between the projected ROEs under the restricted and relaxed policies
Answer:
difference between ROEs = 10.83% (restricted) - 9% (relaxed) = 1.83%
Explanation:
total annual sales = $4,400,000
EBIT = $150,000
net income = $150,000 x (1 - 40%) = $90,000
restricted policy:
asset turnover = 2.5
sales = $3,740,000
EBIT = $135,000
net income = $81,000
assets = $3,740,000 / 2.5 = $1,496,000
equity = $1,496,000 x 50% = $748,000
ROE = $81,000 / $748,000 = 10.83%
relaxed policy:
asset turnover = 2.2
sales = $4,400,000
EBIT = $150,000
net income = $90,000
assets = $4,400,000 / 2.2 = $2,000,000
equity = $2,000,000 x 50% = $1,000,000
ROE = $90,000 / $1,000,000 = 9%
difference between ROEs = 10.83% - 9% = 1.83%
What has the U.S. government done to create economic growth, stability, full employment, freedom, security, equity, and efficiency? Have these policies been successful in reaching the economic goals of the United States? Address how gross domestic product, inflation, and gross domestic product per capita were affected.
Answer:
The U.S. is a market oriented economy with moderate taxation and regulations.
The measures that the U.S. government has taken to create economic growth, stability, full employment, freedom, security, equity and efficiency are mostly market oriented: lower taxes for corporations and some individuals, less regulations, the signing of free trade agreements, the promotion of applied research with universities in alliances with the private sector, and so on.
These policies have been largely succesful. Gross domestic product has continued to grow at a steady pace ever since the 2007-2008 financial crisis was overcome. Inflation has been in the target that is set by the Federal Reserve, and as for GDP Per Capita, the U.S. has one of the highest GDP Per Capita in the world, with $62,000 USD per person in 2019.
An individual who is not party to the contract between a CPA and the client, but who is known by both and is intended to receive certain benefits from the contract is known as:
Answer:
Third party beneficiary.
Explanation:
This is easily seen in contracts as it is said that a third party beneficiary is a person that benefits from an agreement between two persons or a contract between two persons. This is despite the fact that this said person has no effect or was not in any way a part of the said contract.
A third party beneficiary can be denied the rights to compensation of the contract, especially when contract is not fulfilled.
Rights which makes the third party beneficiary valid and concretely a part of the contact are been attached and solidified if the said contract comes through.
A car dealership spends $700,000 on cars to stock their lot. After a day of sales, they earn a total revenue of $1,500,000. What is the car dealership's profit? g
Answer:
$800,000
Explanation:
The computation of the car dealership profit is shown below:
Car dealership profit is
= Total revenue earned - total cost spent
where,
Total revenue earned is $1,500,000
And, the total cost spent is $700,000
So, the car dealership profit is
= $1,500,000 - $700,000
= $800,000
We simply deduct the total cost spent from the total revenue earned so that we get to know car dealership profit
According to the classification system for global organizational culture as developed by Hofstede, the degree to which employees are threatened by ambiguity is known as:
Answer:
Uncertainty Avoidance
Explanation:
The term uncertainty avoidance was coined by a man named, Geert Hofstede to explain the extent to which people are willing to remain in a given situation so as to avoid uncomfortable circumstances. It reflects the extent to which people are unwilling to take risks. A low uncertainty avoidance index simply means that the people who have just been studied are willing to accommodate ambiguity and take risks. A high uncertainty avoidance on the other hand means that the people are more comfortable in their given positions and are unwilling to take risks.
So, in the employee situation, the degree to which employees are threatened by ambiguity is known as uncertainty avoidance.
Brian Lee is 30 years and wants to retire when he is 65. So far he has saved (1) $5,850 in an IRA account in which his money is earning 8.3 percent annually and (2) $4,320 in a money market account in which he is earning 5.25 percent annually. Brian wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in which he expects to earn 8.22 percent annually. How much will Brian have to invest every year to achieve his savings goal?
Answer:
he must invest $4,855.64 during each of the following 35 years
Explanation:
years until retiring = 65 - 30 = 35 periods
desired future value $1,000,000
first we must find the future value of his current investments:
$5,850 x (1 + 0.083)³⁵ = $95,312.94
$4,320 x (1 + 0.0525)³⁵ = $25,897.47
total future value = $121,210.41
this means that he needs to save $1,000,000 - $121,210.41 = $878,789.59 more by the time he reaches 65 years of age
we need to use the formula to calculate future value of an annuity:
FV = payment x annuity factor (FV annuity, 8.22%, 35 periods)
FV = $878,789.59 annuity factor (FV annuity, 8.22%, 35 periods) = 180.98322$878,789.59 = payment x 180.98322
payment = $878,789.59 / 180.98322 = $4,855.64
he must invest $4,855.64 during each of the following 35 years
In cell K2 enter a formula using the IF and OR functions, as well as structured references to determine if Alison Simoneau can be a supervisor
A. Tbe IF function should first determine if the staff member's Service Years is greater than 5 OR if the staff member's college graduate status is "Yes". Remember to use a structured reference to the Service Years and the College Graduate columns.
B. The function should return the text Yes if a staff member meets one or both of those criteria.
C. The function should return the text No if a staff member meets neither of those criteria. tsor and have conlelea Academic Technology training.
Answer:
Enter the following formula in a cell K2:
=IF(OR([at[College Graduate]]="Yes",[at[Service Years]]>5),"Yes","No")
Please replace "at" in the formula with its symbol.
Explanation:
The formula has an IF function which checks a condition.
There are two conditions here to be checked:
A) if the staff member's Service Years is greater than 5.
B) if the staff member's college graduate status is "Yes".
According to the given criteria this IF function should return Yes if a staff member meets one OR both of the above mentioned criteria. Otherwise the function should return No.
This means if any one of the criteria evaluates to true then the text Yes is returned. For example if staff member's Service Years is greater than 5, then function returns Yes. For instance if staff member is a college graduate which means that his college graduate status is "Yes", then the function returns Yes.
The function still returns if either of the two criteria is true. For instance if staff member's Service Years is less than 5 but staff member's college graduate status is "Yes" then the function returns Yes.
However if neither the staff member's Service Years is greater than 5 nor the staff member's college graduate status is "Yes" then the function returns No.
So we use OR function here which with IF function so that the IF function returns true if either of the two criteria is met, otherwise returns false. This takes the form:
IF(OR(Argument 1 is True, Argument 2 is True), YES if True, NO if False)
Also there is at symbol used in the formula. Square brackets are used for structured references. They make clear and easier to reference. Structure reference is used if we want to use a table name in a formula such that we used in this IF OR formula, instead of a normal cell reference. "at" is used to refer only the mentioned/current rows or cells in the table. If you do not use this at then all the columns will be selected. For example [at[Service Years]]>5 is a reference to the cell in the Service Years at the current row. But [[Service Year]] is a reference to the entire column. So only those cells are checked where the Service Year is greater than 5.
Please replace the at word in the formula with its symbol.
Potential GDP is:
a. minimum amount of output that can be produced given the labor force, capital stock, and technology.
b. maximum amount of output that can be produced given the labor force, capital stock, and technology.
c. varies over the business cycle.
d. none of the above.
Answer:
b. maximum amount of output that can be produced given the labor force, capital stock, and technology.
Explanation:
GDP refers to the gross domestic product which reflects the finalized value of the goods and services produced domestically
On the other side, the potential GDP refers to the maximum level of output that can be produced by considering the labor force, capital stock, technology by taking the constant inflation rate
Therefore option b is correct
Supplier development is synonymous with ____. Group of answer choices materials management procurement reverse marketing supplier selection and evaluation
Answer:
The correct answer is: reverse marketing
Explanation:
Reverse marketing can be defined as the type of marketing in which the customer seeks the company, and not that traditional marketing model whose marketers are looking for customers.
Therefore, in this model, it is necessary to develop the variables that will bring the customer closer to the company, because reverse marketing can be considered an aggressive strategy to achieve objectives, where the buyer is the main decision maker of the purchase.
Supplier development is a technique widely used in business to business markets, where the company is the buyer who will approach the supplier in order to meet their needs.
Compute the Cost of Goods Manufactured and Cost of Goods Sold for Blue Sea Company for the most recent year using the amounts described next. Assume that Raw Materials Inventory contains only direct materials
(Click the icon to view the data )
Start the calculation for cost of goods manufactured by calculating the direct materials used
Blue Sea Company
Calculation of Direct Materials Used
For Current Year
Beginning raw materials inventory $ 27,000
Plus Purchases of direct materials 79,000
Materials available for use 106,000
Less: Ending raw materials iniventory 31,000
Direct materials used 75.000
Calculate the cost of goods manufactured.
Answer:
Calculate the cost of goods manufactured.
$243,800Explanation:
manufacturing overhead = indirect labor ($46,000) + insurance of plant ($8,000) + depreciation of machines and equipment ($12,700) + repairs and maintenance ($4,100) = $70,800
Beginning raw materials = $27,000
+ Purchases of raw materials = $79,000
- Ending raw materials inventory = -$31,000
= Direct materials used in production = $75,000
+ Direct labor = $83,000
+ Manufacturing overhead = $70,800
= Total manufacturing costs = $228,800
+ Beginning work in process = $43,000
- Ending work in process = -$28,000
= Cost of goods manufactured = $243,800
A company with a decreasing interest expense would see what change to its times interest earned?
a) An increase
b) A decrease
c) No change
d) Cannot be determined
Answer:
a) An increase
Explanation:
The times interest earned ratio is a ratio that measures the portion of the income or earning that can be used to pay for future interest expenses. Times interest earned ratio is also known as the coverage ratio and it can be computed using the following formula:
Times interest earned ratio = EBIT / Interest expense .............. (1)
Where EBIT denotes earning before interest and tax.
From equation, it can be seen that there is a negative relationship between times interest earned and interest expense. That is, as interest expense increases, times interest earned falls. On the other hand, as interest expense falls, times interest earned increases.
Therefore, the correct option is a) An increase, that is a company with a decreasing interest expense would see an increase to its times interest earned.
An investor who was not as astute as he believed invested $264,500 into an account 12 years ago. Today, that account is worth $204,000. What was the annual rate of return on this account
Answer:
-19.061%
Explanation:
interest earned= principal x time x interest rate
Interest earned = $264,500 - $204,000 = $-60,500
$-60,500 = $264,500 x 12 x interest rate
interest rate = -0.19061 = -19.061%
Now suppose that the demand for bell peppers is relatively inelastic. How will this change your answer to the previous question?
Answer:
D. Price will increase by a larger increment and the quantity will decrease by a smaller increment
Explanation:
here is the full question :
he market for bell peppers is competitive. For bell peppers to grow properly they need substantial rainfall. A very dry winter in California did not produce enough rain to grow bell peppers in California, one of the major bell pepper growing regions of the world.
Now suppose that the demand for bell peppers is relatively inelastic. How will this change your answer to the previous question?
A. Price will increase by a smaller increment and the quantity will decrease by a larger increment
B. Price will increase by a smaller increment and the quantity will decrease by a larger increment.
C. Price will increase by a larger increment and the quantity will decrease by a larger increment
D. Price will increase by a larger increment and the quantity will decrease by a smaller increment
Demand is inelastic if a small change in price has little or no effect on quantity demanded.
due to the low rainfall, less pepper would be produced. as a result the supply of pepper would rise. since the demand for pepper is inelastic, the rise in price would be greater than the change in quantity demanded.
Price will be increase by the larger increment of quantity that will decrease by the smaller increment. Thus the option D is correct.
What is relatively inelasticity ?The relatively inelastic demand is the one where the percentage changed in the demand than the percentage change of the price of the product. As the price may increase the demand get reduced. Most essential goods are inelastic.
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This question is incomplete.
The full question is
The market for bell peppers is competitive. For bell peppers to grow properly they need substantial rainfall. A very dry winter in California did not produce enough rain to grow bell peppers in California, one of the major bell pepper growing regions of the world.
Now suppose that the demand for bell peppers is relatively inelastic. How will this change your answer to the previous question?
A. Price will increase by a smaller increment and the quantity will decrease by a larger increment
B. Price will increase by a smaller increment and the quantity will decrease by a larger increment.
C. Price will increase by a larger increment and the quantity will decrease by a larger increment
D. Price will increase by a larger increment and the quantity will decrease by a smaller increment.
The annual interest rate on a credit card is 14.99%. If the minimum payment of $30 is made each month, how many months will it take to pay off an unpaid balance of $807.91?
Answer:
30.967 months
Explanation:
We can assume the number of months in which the credit card will be paid off to be x.
Since we are given that the unpaid balance on the credit card is $807.91 with annual interest of 14.99%
We can therefore calculate the amount of interest to be = 14.99/100 × $807.91
= $121.11
Then the total amount to be paid is
= $807.91 + $121.1
= $929.01
Also, since the minimum payment is $30 per month, x would therefore be;
= 929.01/30
= 30.967
It therefore means that the balance in the credit card will be paid off in 30.967 months.
Each of the following are types of__________allocation methods:
plantwide rate method, departmental overhead rate method and activity-based costing method.
Answer:
Each of the following are types of Overheads allocation methods.
Explanation:
Factory overheads such as rent, electricity or water can not be traced directly to a cost object.
When determining the cost of a cost object these overheads are apportioned to departments they pass through for processing or the actual job using an allocation method.
The common methods for allocating overheads are plant-wide rate method, departmental overhead rate method and activity-based costing method.
Pump prices slide as crude oil falls to six-year low The average price for regular gasoline at U.S. pumps fell almost 4 cents in March to $2.50 a gallon. The price of crude oil dropped to $43.46 per barrel on March 17, the lowest since March 2009. Source: Bloomberg Business, March 23, 2015 Explain the effect of a lower crude oil price on the supply of gasoline. A fall in the price of crude oil will ______.
Answer:
lower the cost of producing gasoline and increase the supply of gasoline
Explanation:
Crude oil is an input needed in the production of gasoline. If the price of crude oil falls, it would become cheaper to make gasoline and therefore the supply of gasoline would increase.
The __________ is based on all the goods and services produced in the economy, which make it a current-weights index. eco203
Answer:
The __Paasche Index or Current-Weighted Index_______ is based on all the goods and services produced in the economy, which make it a current-weights index.
Explanation:
The Current-Weighted Index is an index that calculates the weighted average of prices or quantities or with the weights used proportionate to the quantities or prices of the goods. At regular intervals, the weights have to re-calculated in line with the current realities. This regular re-calculation of the weights, which is the basis for its name, makes it current.
On January 1, 2019, Brooks Inc. borrows $90,000 from a bank and signs a 5% installment note requiring four annual payments of $25,381 at the end of each year. Complete the necessary journal entry on 12/31 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
No Date General Journal Debit Credit
1 12/31 Interest expense 4,500
Notes payable 90,000
Answer:
Brooks Inc.
Journal entries
DATE General Journal DEBIT ($) CREDIT ($)
12/31 Interest Expense 4,500.00
(90,000 x 5%)
Notes Payable (Balancing Figure) 20,881.00
Cash 25,381.00
Morgan Company issues 10%, 20-year bonds with a par value of $760,000 that pay interest semiannually. The current market rate is 9%. The amount paid to the bondholders for each semiannual interest payment is: Multiple Choice $34,200. $380,000. $38,000. $68,400. $76,000.
Answer:
c. $38,000
Explanation:
Bond is issued at i= 10% = 0.10, n=20, m= 2, p= $760,000
The amount of interest owed to the bondholders for each semiannual interest payment is:
= $760,000 × 0.10 × 6/12
= $760,000 x 0.05
= $38,000
Tracy Company, a manufacturer of air conditioners, sold 190 units to Thomas Company on November 17, 2021. The units have a list price of $300 each, but Thomas was given a 20% trade discount. The terms of the sale were 4/10, n/30. Thomas uses a perpetual inventory system. 3. Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2021 and December 15, 2021 using the net method of accounting for purchase discounts.
Answer:Please see explanation column for answer.
Explanation:
Net purchase per unit = List price per unit - Trade discount
$300 - ( 300 x 20 %) = 300- (300 x 0.2)= 300 -60= $240
Total purchase amount = Number of units x Net purchase per unit
190 x 240= $45,600
Discount from purchase = Total purchase amount x discount percentage/ 100
=45,600 x 4/100= $1,824
Cash = $45,600
Discount = $1,824
Accounts payable = $43,776
Using the net method of accounting for purchase discounts.
A)Journal entries to record the purchase by Thomas on November 17, 2021
Account Debit Credit
Purchases $43,776
Account Payable $43,776
B)Journal entries to record the payment by Thomas on November 26, 2021
Account Debit Credit
Account Payable $43,776
Cash $43,776
C)Journal entries to record the payment by Thomas on December 15, 2021
Account Debit Credit
Account Payable $43,776
Interest expense $ $1,824
Cash $45,600
The net account payable by Thomas on November 17, 2021, is $43,776. The journal entries to record the purchase by Thomas is attached in the image.
Net purchase per unit = List price per unit - Trade discount
$300 - ( 300 × 20 %) = 300- (300 × 0.2)
= 300 -60
= $240
Total purchase amount = Number of units x Net purchase per unit
190 × 240= $45,600
Discount from purchase = Total purchase amount x discount percentage/ 100
=45,600 × 4/100
= $1,824
Cash = $45,600
Discount = $1,824
Accounts payable = $43,776
The journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2021 and December 15, 2021 attached below in the image.
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“how does a change in supply affect the equilibrium price?”
Answer:
An increase in supply is illustrated by a rightward shift of the supply curve, and, all other things equal, this will cause the equilibrium price to fall. A decrease in supply is illustrated by a leftward shift of the supply curve - this will cause the equilibrium price to rise.
Explanation:
hi
The following information is available for Masun Company: Sales $550,000 Total fixed expenses $150,000 Cost of goods sold 390,000 Total variable expenses $370,000 A CVP income statement would report:
Answer:
$180,000
Explanation:
The computation of CVP income statement is shown below:-
CVP Income statement
Sales $550,000
Variable cost $370,000
Contribution margin $180,000
Fixed cost $150,000
Operating Profit $50,000
Therefore for computing the contribution margin we simply deduct the variable cost from sales and fixed cost to arrive the operating profit
An action for breach of warranty generally must be brought within four years of the breach.
a. True
b. False
Answer:
i The answer is going to be a. true
On January 2, 2017, the Matthews Band acquires sound equipment for concert performances at a cost of $66,200. The band estimates it will use this equipment for five years. It estimates that after five years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that due to concert bookings beyond expectations, this equipment will last only a total of three years. The salvage value remains unchanged. Compute the revised depreciation for both the second and third years.
Answer:
$25,680
Explanation:
For the computation of revised depreciation for both the second and third years first we need to follow some steps which are shown below:-
Depreciation cost = Cost - Salvage value
= $66,200 - $2,000
= $64,200
Annual depreciation under SLM method = Depreciable cost ÷ Useful life
= $64,200 ÷ 5
= $12,840
Book value of the equipment = Cost - Annual depreciation
= $66,200 - $12,840
= $53,360
Remaining depreciable cost = Book value at point of division - Salvage value
= $53,360 - $2,000
= $51,360
Annual depreciation for year 2 and year 3 = Remaining depriciable cost ÷ Remaining useful life
= $51,360 ÷ (3 - 1)
= $51,360 ÷ 2
= $25,680
Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:
a. Purchased $250,000 of materials.
b. Used $180,000 of direct materials in production.
c. Incurred $450,000 of direct labor wages.
d. Incurred $180,000 of factory overhead.
e. Transferred $760,000 of work in process to finished goods.
f. Sold goods for $1,200,000.
g. Sold goods with a cost of $675,000.
h. Incurred $215,000 of selling expense.
i. Incurred $125,000 of administrative expense.
Required:
a. Prepare the January income statement for Sorensen Manufacturing Company.
b. Determine the inventory balances at the end of the first month of operations.
Answer:
Required a.
January income statement for Sorensen Manufacturing Company
Sales $1,200,000
Less Cost of Sales ($675,000)
Gross Profit $525,000
Less Expenses :
Selling expense ($215,000)
Administrative expense ($125,000)
Net Income / (Loss) $185,000
Required b.
Work In Process Inventory = $120,000
Finished Goods Inventory = $85,000
Explanation:
Manufacturing Cost Schedule (Determination of Work In Process Inventory)
Direct Materials $180,000
Indirect Materials ($250,000 - $180,000) $70,000
Direct Labor $450,000
Factory Overheads $180,000
Total Cost of Goods Manufactured $880,000
Less Transferred to finished goods ($760,000)
Closing Work In Process Inventory $120,000
Finished Goods T- Account (Determination of Finished Goods Inventory)
Debit :
Transferred from Work In Process $760,000
Totals $760,000
Credit:
Trading Account $675,000
Ending Finished Goods Inventory $85,000
Totals $760,000
g "Seidman Company manufactures and sells 30,000 units of product X per month. Each unit of product X sells for $16 and has a contribution margin of $7. If product X is discontinued, $85,000 in fixed monthly overhead costs would be eliminated and there would be no effect on the sales volume of Seidman Company's other products. If product X is discontinued, Seidman Company's monthly income before taxes should:"
Answer:
Decreased by $125,000
Explanation:
Calculation for Seidman Company's monthly income before taxes should:"
First step is to find the loss in contribution margin using this formula
Loss in contribution margin = Sales unit× contribution margin
Let plug in the formula
Loss on contribution margin=30,000 × $ 7
= ($210,000)
Second step
Fixed monthly overhead = $85,000
Monthly income before taxes =Loss in contribution margin - Fixed monthly overhead
Monthly income before taxes= ($210,000) - $85,000
Monthly income before taxes= $125,000
Thereforre in a situation where product X is discontinued, this means that Seidman Company's monthly income before taxes would get decreased by $125,000
20.Assume that you just graduate and get a job. You will work for 40 years and save each year before you retire. During retirement you plan to receive a pension annuity of $100,000 each year for another 40 years. How much money will you need to have at the moment you retire? How much money do you need to save every year before retirement? Assume the interest rate is always 8%. Before retirement, you deposit your saving at the end of each year. During retirement, you receive the annuity at the beginning of each year
Answer:
How much money will you need to have at the moment you retire?
$1,287,858How much money do you need to save every year before retirement?
$4,971.33Explanation:
we have to first determine the amount of money you need to finance your retirement distributions:
using the annuity due present value formula, PV = annuity payment x annuity due factor (PV, 8%, n = 40)
PV = $100,000 x 12.87858 = $1,287,858
now we must use the ordinary annuity future value formula, FV = annuity payment x annuity factor (FV, 8%, n = 40)
annuity payment = FV / annuity factor = $1,287,858 / 259.057 = $4,971.33