Answer:
a. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. - Government Purchases (G).
The Government purchases/ expenditure portion of GDP includes the expenses by Government on the economy. This expenditure by the Pennsylvania Government will therefore come under here.
b. Simone gets a new refrigerator made in the United States. - Consumption (C).
Consumption accounts for spending by households and individuals in the economy. Simone lives in the US and buys goods in the US so this is Consumption.
c. Simone's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. - Exports (X)
Exports are goods made in a country which are then sold to consumers outside the country. Simone's father is in Sweden so buying an American product is an export for the United States.
d. Rajiv's employer upgrades all of its computer systems using U.S.-made parts. - Investment (I).
Investment refers to spending by private interests that are aimed to improve capital goods in the economy. Spending on upgrading computer systems therefore falls here.
e. Rajiv buys a sweater made in Guatemala. - Imports (M)
When a person buys a good that is made outside the country, this is an import.
During your presentation to the Board, the members interrupt you to say that they disagree and believe that Charles Schwab and the industry are in the mature stage of the business life cycle. During their critique, they tell you that mature stages have two groups of strategies: to deter new entry and to manage rivals. They express concern about the groups of new small firms that are trying to steal marketshare. Understanding their perspective, you decide to switch gears.
Growth StageWhich strategy do you tell the Board you plan to implement?
a. Manage rivals
b. Deter new entry
Answer:
a. Manage rivals
Explanation:
When the product which the business is offering gets to the maturity stage, I would propose that competing rivals are managed. The maturity stage is the stage where the company continues to record stagnant profit. The profit neither reduces nor increases and they also have to deal with new rivals. When this happens, it is best that the company engages its best brains to brainstorm on innovative strategies to supersede their rivals.
Some of these strategies might involve extending their products and services to other locations so that they can start from the initial stages of business growth, diversification, or price adjustments. Any of these options should be fully explored so that they can remain in the market and exceed their rivals.
Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6,660. Six months’ of the one-year insurance policy purchased on July 1 has expired. Four months of the one-year rental agreement purchased on September 1 has expired. Of the $1,000 of office supplies purchased on July 4, $300 remains. Interest expense on the $44,000 loan obtained from the city council on August 1 should be recorded. Of the $2,100 of racing supplies purchased on December 12, $110 remains. Suzie calculates that the company owes $13,900 in income taxes.
Question Completion:
Record the adjusting entries.
Answer:
Adjusting Journal Entries:
Debit Depreciation Expense - Mountain Bikes $6,660
Credit Accumulated Depreciation - Mountain Bikes $6,660
To record depreciation expense for the period.
Debit Insurance Expense $
Credit Prepaid Insurance $
To record the insurance expense for the period.
Debit Rental Expense $
Credit Prepaid Rental $
To record the rental expense for the period.
Debit Office Supplies Expense $700
Credit Office Supplies $700
To record office supplies expense for the period.
Debit Interest Expense $
Credit Interest Expense Payable $
To record interest expense on the $44,000 loan.
Debit Racing Supplies Expense $1,990
Credit Racing Supplies $1,990
To record racing supplies expense for the period.
Debit Income Tax Expense $13,900
Credit Income Tax Payable $13,900
To record income tax expense payable.
Explanation:
Adjusting journal entries are recorded in order to present elements of financial statements based on the accrual basis and not whether cash was paid or received.
In this question, some data were not provided. This is why some figures were not disclosed for Insurance Expense, Rental Expense, and Interest Expense. But, the accounting treatments remain valid. Only the figures are missing.
Composition of equity investment account Several years ago, a parent company acquired all of the outstanding common stock of its subsidiary for a purchase price of $300,000. On the acquisition date, this purchase price was $100,000 more than the subsidiary’s book value of Stockholders’ Equity. The AAP was entirely attributable to Goodwill. Since the date of acquisition, the subsidiary has reported cumulative net income of $400,000 and paid $50,000 of dividends to its parent company.
Compute the balance of the Equity Investment account on the parent’s balance sheet assuming that the Goodwill asset has not declined in value subsequent to the date of acquisition.
Answer:
Balance of equity investment account = $750,000
Explanation:
Equity investment account
Goodwill $100,000
Investment $300,000
Net income $400,000
Less: Dividends $50,000
Balance of equity $750,000
investment account
Presented below is information related to Lexington Real Estate Agency.
Oct. 1 Diane Lexington begins business as a real estate agent with a cash investment of $20,000 in exchange for common stock.
2 Hires an administrative assistant.
3 Purchases office furniture for $2,300, on account.
6 Sells a house and lot for N. Fennig; bills N. Fennig $3,600 for realty services performed.
27 Pays $850 on the balance related to the transaction of October 3.
30 Pays the administrative assistant $2,500 in salary for October.
Journalize the transactions.
Answer:
Oct 1
DR Cash............................................................................$20,000
CR Common Stock.........................................................................$20,000
Oct 2. No entry required
Oct 3
DR Office Furniture .....................................................$2,300
CR Accounts Payable................................................................$2,300
Oct 6
DR Accounts Receivable.............................................$3,600
CR Service Revenue - Realty services...................................$3,600
Oct 27
DR Accounts Payable ..................................................$850
CR Cash .......................................................................................$850
Oct 30
DR Salaries Expense ....................................................$2,500
CR Cash ..........................................................................................$2,500
on december 31 there were 43 units resining in ending inventory
Answer:
And then?
Explanation:
Consider the following events: a. A fruitworm infestation ruins a large number of apple orchards in the state of Washington. This event would cause a shift of the supply curve in the market for apples. b. Demand for apples goes down, causing the price to fall. This event would cause a movement along the supply curve. Considering the events described above, which of the following statements is true
Answer:
Both statements are true
Explanation:
Due to the worm infestation, there would be a fall in supply of apples, this would lead to a shift of the supply curve to the left
a fall in price in apples, would lead to a movement down along the supply curve.
Only a change in price of a good leads to a movement along the supply curve for the good, other factors lead to a shift of the supply curve
The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:
1. Beginning balances were: Cash, $109,000; Taxes Receivable, $213,500; Accounts Payable, $64,250; and Fund Balance, $258,250.
2. The budget was passed. Estimated revenues amounted to $1,390,000 and appropriations totaled $1,384,200. All expenditures are classified as General Government.
3. Property taxes were levied in the amount of $995,000. All of the taxes are expected to be collected before February 2021.
4. Cash receipts totaled $965,000 for property taxes and $337,500 from other revenue.
5. Contracts were issued for contracted services in the amount of $123,250.
6. Contracted services were performed relating to $109,500 of the contracts with invoices amounting to $104,700.
7. Other expenditures amounted to $1,035,500. Accounts payable were paid in the amount of $1,202,000.
8. The books were closed.
Required:
a. Prepare journal entries for the above transactions.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund.
c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation
Answer:
Explanation:
Please see attached file .
Riverbed Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,860,000 on March 1, $1,260,000 on June 1, and $3,016,770 on December 31. Riverbed Company borrowed $1,198,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,088,000 note payable and an 10%, 4-year, $3,308,700 note payable.
Required:
Compute the weighted-average interest rate used for interest capitalization purposes.
Answer:
9.61%
Explanation:
Computation for the weighted-average interest rate
Using this formula
Weighted-average interest rate=Total Interest amount /Total Principal amount
Particular Principal Interest
9%, 5-year note payable $2,088,000 $187,920
10%, 4-year note payable $3,308,700 $330,870
Total $5,396,700 $518,790
Total Principal amount =$5,396,700
Total Interest amount =$518,790
Let plug in the formula
Weighted-average interest rate=$518,790/$5,396,700
Weighted-average interest rate=0.0961*100
Weighted-average interest rate=9.61%
Therefore Weighted-average interest rate is 9.61%
Commercial advertising campaigns often seek to spin information on products. For example, a car manufacturer might say a particular car it manufactures was ranked as the most innovative new vehicle. The details of the survey that it was conducted at a shareholder meeting and only vehicles it manufactures were included in the survey are quickly flashed in very small print at the bottom of the screen. The decision to deliberately obscure potentially important information is best described as being in which domain?
a. Obstructive domain
b. Legal domain
c. Domain of responsibility
d. Ethical domain
e. Protective domain
Answer:
D)ethical domain
Explanation:
Ethical domain can be regarded as behavioural domains that address right or wrong conducts. Ethical domain extends on domains such as reason, the consequences as well as the action taken.
Therefore in the case of this Commercial advertising campaigns as described in the question, The decision to deliberately obscure potentially important information is best described as being in ethical domain
Setting aside the political issues between North Korea and the United States, is there a reasonable way to respond to an anonymous threat found on the Internet somewhere?
what are the brunches of accounting
Answer:
there are eight branches in accounting:1. forensic accounting
2. financial accounting
3. cost accounting
4. managerial accounting
5. fiduciary accounting
6. accounting information systems
7. tax accounting
8. Auditing
The basis of trade
Suppose that Italy and Spain both produce cheese and wine. Italy's opportunity cost of producing a bottle of wine is 2 pounds of cheese. That is, Italy forgoes the production of 2 pounds of cheese when it produces a bottle of wine. Spain's opportunity cost of producing a bottle of wine is 4 pounds of cheese.
______ a comparative advantage in the production of wine.
______ a comparative advantage in the production of cheese.
Answer:
• Italy has a comparative advantage in the production of wine.
• Spain has a comparative advantage in the production of cheese.
Explanation:
Comparative advantage is when a particular economy has a lower opportunity cost when it produces goods and seevices than its trading partners.
For Italy, the country forgoes the production of 2 pounds of cheese when it produces a bottle of wine while Spain forgoes 4 pounds of cheese.
The above statement simply means that Italy has a comparative advantage in the production of wine and Spain has a comparative advantage in the production of cheese.
which of the following should not be recorded in income and expenditure account?
a.sale of old newspaper.
b.loss on sale of asset .
c.honorarium paid to the secretary .
d.Sale proceeds of furniture
Answer:
C. honorarium paid to the secretary
Explanation:
2. Refer to the original data. Assume again that Polaski Company expects to sell only 40,000 Rets through regular channels next year. The U.S. Army would like to make a one-time-only purchase of 8,000 Rets. The Army would pay a fixed fee of $1.20 per Ret, and it would reimburse Polaski Company for all costs of production (variable and fixed) associated with the units. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. What is the financial advantage (disadvantage) of accepting the U.S. Army's special order
Answer:
the original data is missing, so I looked for a similar question to fill in the blanks:
selling price per unit $50
production costs per unit
direct materials $15 per unitdirect labor $8 per unit variable manufacturing overhead $3 per unit fixed overhead $9 per unit variable selling expense $4 per unitfixed selling expense $6 per unittotal costs per unit $45I couldn't find all the information because the questions I used to fill in the missing information all referred to lower production levels, but we face two scenarios. You should be able to choose one or the other to answer your question depending on spare capacity.
Scenario 1: Assuming that Polansky has enough spare capacity and that the Army's special order will not affect current sales, then the company's operating profit should increase by:
8,000 x $1.20 (fixed amount paid by Army) = $9,600
8,000 x $9 (fixed overhead costs reimbursed but not incurred) = $72,000
net increase in operating profit = $81,600
The company's fixed overhead would be allocated to the Rets sold through regular channels.
Scenario 2: Assuming that Polansky does not have enough spare capacity and that the Army's special will decrease current sales, then the company's operating profit should decrease by:
8,000 x ($50 - $41, variable selling not included) = $72,000
8,000 x $1.20 (fixed amount paid by Army) = ($9,600)
net decrease in operating profit = $62,400
A production line has three machines A, B, and C, with reliabilities of .99, .96, and .93, respectively. The machines are arranged so that if one breaks down, the others must shut down. Engineers are weighing two alternative designs for increasing the line's reliability. Plan 1 involves adding an identical backup line, and plan 2 involves providing a backup for each machine. In either case, three machines (A, B, and C) would be used with reliabilities equal to the original three.
a. Which plan will provide the higher reliability?
b. Explain why the two reliabilities are not the same.
c. What other factors might enter into the decision of which plan to adopt?
Answer: plan B is better
Explanation:
Machines _____reliability
__A__________ 0.99
__B__________ 0.96
__C__________ 0.93
Backup machines A, B, C also have similar probabilities :
PLAN 1:
P(success) = 0.99 * 0.96 * 0.93 = 0.8839
P(line fails) = 1 - 0.8839 = 0.1161
P(backup) = 0.99 * 0.96 * 0.93 = 0.8839
P(success) + [p(line fails) * p(backup)]
0.8839 + (0.1161 * 0.8839)
0.8839 + 0.10262079
= 0.9865
Plan B:
Backup is provided for each machine ;
P(success) + [p(line fails) * p(backup)] for each of machine A, B and C
Machine A:
0.99 + (1 - 0.99)*0.99 = 0.9999
Machine B:
0.96 + (1 - 0.96)*0.96 = 0.9984
Machine C:
0.93 + (1 - 0.93)*0.93 = 0.9951
A*B*C = 0.9999 * 0.9984 * 0.9951 = 0.9934
Plan B has greater probability of success.
2.) plan A provides a central or one single backup option should any of the machines fail. However, plan B provides separate backup options for each of machines A, B and C.
3.) choosing a plan may also depend on the cost of providing each backup plan.
Microsoft sells its wireless laser desktop mouse and keyboard for $70. Unit variable costs are$45.60 and fixed costs associated with this product total $277,200.
a. What is the break-even point in units?
b. What is the net income or loss if 40,000 units are sold?
Answer:
11,361 units and profit $698,800.00
Explanation:
The break-even point is obtained by dividing fixed costs by contribution margin per unit.
Break-even =fixed costs/contribution margin per unit
In this case, fixed costs are $277,200.
Contribution margin per unit = selling price- variable cost
= $70 - $45.60
=$24.60
Break-even point in units will be
=$277,200/$24.60
=11,361 units
Net income after sales of 40,000 units
Total revenue =sales x volume
=$70 x 40,000
=$2,800,000.00
net income will be $2,800,000.00 -( variable costs+ fixed costs)
=$2,800,000.00- {($45.60 x 40,000) + $277,200}
=$2,8000,000.00 -($1,824,000.00 + $ 277,200)
=$2,8000,000.00- $2,101,200.00
=$698,800.00
A profit of $698,800.00
The below graph shows the domestic motor oil market in the U.S (in millions of barrels). Based on the information given, how many barrels of motor oil does the U.S. import given that there is no protectionism?
If there is no protectionism, it is expected that the U.S. imports 276 million barrels.
How to determine the number of barrels that would be imported in a given situation?To understand the number of barrels that would be important we need to take a look at the graph presented, which shows both demand and supply for three situations:
Price with no tradePrice with tariffFree trade priceIn the case of, free trade, which occurs if there is no protectionism, the supply line shows that 276 million barrels would be supplied or imported. Based on this, in this situation, it is expected 276 million barrels are imported.
Learn more about supply in https://brainly.com/question/28285610
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Lucia is a 69-year-old single individual who receives a taxable pension of $10,000 per year and Social Security benefits of $7,000. Lucia is considering the possibility of selling stock she has owned for years and using the funds to purchase a summer home. She will realize a gain of $20,000 when she sells the stock, which has been paying $1,000 of dividends each year. Lucia says her brother recommended that she sell half the stock this year and half next year because selling all of the stock at once would affect the tax treatment of her Social Security benefits.
a) Computer her AGI under the assumption she sells all of the stock now after receiving $1,000 dividends from the stock.
b) Repeat the computation under the assumption she sells only half of the stock this year and also receives $1,000 dividends from the stock.
Answer: a. $34500
b. $21000
Explanation:
a. Compute her AGI under the assumption she sells all of the stock now after receiving $1,000 dividends from the stock.
This will be the addition of the taxable pension, half of social security benefits, stock gain, and the dividend received. This will be:
= $10000 + ($7000 × 50%) + $20000 + $1000
= $10000 + $3500 + $20000 + $1000.
= $34500
b. Repeat the computation under the assumption she sells only half of the stock this year and also receives $1,000 dividends from the stock.
= $10000 + $10000 + $1000
= $21000
Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing.
2013 2014 2015
Sales revenue $290,000 ? $410,000
Sales returns and allowances 11,000 13,000 ?
Net sales ? 347,000 ?
Beginning inventory 20,000 32,000 ?
Ending inventory ? ? ?
Purchases ? 260,000 298,000
Purchase returns and allowances 5,000 8,000 10,000
Freight-in 8,000 9,000 12,000
Cost of goods sold 233,000 ? 293,000
Gross profit on sales 46,000 91,000 97,000
Answer:
For 2013:
Net sales = $279,000
Ending inventory = $32,000
Purchases = $242,000
For 2014:
Sales revenue = $360,000
Cost of Goods sold = $269,000
Ending inventory = $24,000
For 2015:
Net sales = $390,000
Sales returns and allowances = $20,000
Beginning inventory = $24,000
Ending inventory = $31,000
Explanation:
Note: See the attached excel file for the tabulated income statement data to see the filled missing amounts. The answers are the ones in bold red color.
For each of the years, the calculations are done as follows:
For 2013:
Net sales = Sales revenue - Sales returns and allowances = $290,000 - $11,000 = $279,000
Ending inventory in 2013 = Beginning inventory in 2014 = $32,000
Purchases = Cost of Goods sold - Beginning inventory + Purchase returns and allowances – Freight-in + Ending inventory = $233,000 - 20,000 + 5,000 - 8,000 + $32,000 = $242,000
For 2014:
Sales revenue = Sales returns and allowances + Net sales = $13,000 + $347,000 = $360,000
Cost of Goods sold = Net sales - Gross profit on sales = $347,000 - $91,000 = $269,000
Ending inventory = Beginning inventory + Purchases - Purchase returns and allowances + Freight-in - Cost of Goods sold = $32,000 + $260,000 - $8,000 + $9,000 - $269,000 = $24,000
For 2015:
Net sales = Cost of Goods sold + Gross profit on sales = $293,000 + $97,000 = $390,000
Sales returns and allowances = Sales revenue - Net sales = $410,000 - $390,000 = $20,000
Beginning inventory in 2015 = Ending inventory in 2014 = $24,000
Ending inventory = Beginning inventory + Purchases - Purchase returns and allowances + Freight-in - Cost of Goods sold = $24,000 + $298,000 - $10,000 + $12,000 - $293,000 = $31,000
List five potential conflicts that ANY employee of the company could face, be it sales
staff on the floor or management staff in the office, or even a warehouse worker that ships
products to the outlet store.
U ever get this solved? I need it too
Explanation:( NOT AN ANSWER)
Perform a financial analysis for a project using the format provided in the book. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $100,000 in Year 1 and 525.000 each year in Years 2, 3, and 4. (Hint: Just change the years in the template file from 0, 1, 2, 3, and 4 to 1, 2, 3, and 4. The discount factors will automatically be recalculated.) Estimated benefits are 50 in Year 1 and 580,000 each year in Years 2, 3, and 4. Use an 8% discount rate. Use the business case financials template provided on the companion Web site to calculate and clearly display the NPV, ROI, and year in which payback occurs. In addition, write a paragraph explaining whether you would recommend Investing in this project based on your financial analysis.
Answer:
A B C D E
Year 1 100000 0 0.925 92500 0
Year 2 25000 80000 0.857 21425 68560
Year 3 25000 80000 0.793 19825 63440
Year 4 25000 80000 0.735 18375 58800
Total 152,125 190,800
Cost of the project = A, Benefits = B, Discount Factor at 8% = C, NPV of Outflows = D, NPV of Inflows = E
1. Financial Analysis using NPV
Net present value of the Cost and Benefits = NPV of Inflows - NPV of Outflows
NPV = $190,800 - $152,125
NPV = $38,675
Conclusion: NPV is positive hence the project should be accepted
2. ROI = The Earnings / Cost of investment made.
ROI = 240,000 / 175,000
ROI = 1.371429
ROI = 137.14%
3. Payback Period
A B C D
Year 1 100000 100000 0 0
Year 2 25000 125000 80000 80000
Year 3 25000 150000 80000 160000
Year 4 25000 175000 80000 240000
Cost of the project = A, Cumulative Cost = B, Benefits = C, Cumulative benefits = D
Here, it is apparent that cost in project is achieved in the Year 3 itself but, $25,000 invested every year, so that cost need to be recovered from the cost. Incremental cost is $25,000 but incremental earning required is Only $175,000 - $160,000 = 15000$.
So, Year 4, $80,000 is earned in 12 months, then $15,000 in how many months, require
So, accordingly 12 * $15,000 / $80,000 = 2.25 Months.
Pay back period is 3 years and 2.25 months
Hence, it is advisable to take up the project.
A continuous (rolling) budget:_________.
A. Presents planned activities for a period but do not present a firm commitment.
B. Presents the plan for a range of activity so that the plan can be adjusted for changes in activity.
C. Presents the plan for only one level of activity and does not adjust to changes in the level of activity.
D. Drops the current month or quarter and adds a future month or quarter as the current month or quarter is completed.
Answer:
D. Drops the current month or quarter and adds a future month or quarter as the current month or quarter is completed.
Explanation:
A. This is a forecast not a budget. Therefore, this option is incorrect.
B. This option is basically flexible budget while in a rolling budget there are more features as well. This option is also incorrect.
C. This is definition of a static budget. On the other hand a rolling budget can not be static. Hence, this option is also incorrect.
D. A rolling budget or also known as continuous budget is one where additional period is added after the end of the previous period (whether month, quarter or year). Hence, this option is correct.
is .org a good website?
Answer:
Yes because it is a Government website that cannot be bought
Explanation:
Answer:
Yes, ofcourse Why not?
Read the following scenario and answer the question in 5-10 sentences. You are an experienced small business owner who would like to become a franchisee of Quick Burger, a nationwide franchise of fast food restaurants. There are some Quick Burger restaurants in your area, but not so many that another franchise would be unprofitable. Before joining the franchise, you want to make sure that the essential terms are clear to both parties. Discuss potential issues you would need to resolve before entering into a franchise contract with Quick Burger.
Answer:
Following are the solution to this question:
Explanation:
There are many multiple problems, which need to be resolve until the lease consensus is made. Its first problem was its clarity about how geographic the various branches of the same chain operate and cause disputes. Its second problem was its variety, language, or way of marketing for the franchise as current rapid can hurt one another's consumers or harm the product overall. Its third problem applies to regional information sharing with both the franchise. Unless the centralized administrative center or even the consumers decide it. In the current franchise owner will be damaged when it does not consider this into account. The fourth problem is the sharing with many other franchise owners of business information or information with my existing consumer base. It ought not to happen. Its fifth problem was a help to promote, run, report as well as other franchise relevant individuals over a certain time. Before entering the licensing deal, it ought to be obvious.
Its other issues must be considered, of addition, until entering it into a contract, as concerns taxes, profit-sharing, the number of calls being made on even a regular basis, handling unfair commercial practices or possession of misconduct at such a store, as well as the legal support which the expand and contract.
Analysts following the Cullumber Golf Company were given the following balance sheet information for the years ended June 30, 2017, and June 30, 2016:_______.
Assets 2017 2016
Cash and marketable securities $33,411 $16,566
Accounts receivable 278,305 318,768
Inventory 405,719 352,740
Other current assets 41,251 29,912
Total current assets $758,686 $717,986
Plant and equipment 2,173,719 1,609,898
Less: Accumulated depreciation (661,044) (206,678)
Net plant and equipment $1,512,675 $1,403,220
Goodwill and other assets 382,145 412,565
Total assets $2,653,506 $2,533,771
Liabilities and Equity 2017 2016
Accounts payable and accruals $378,236 $332,004
Notes payable 14,487 7,862
Accrued income taxes 21,125 16,815
Total current liabilities $413,848 $356,681
Long-term debt 663,481 793,515
Total liabilities $1,077,329 $1,150,196
Preferred stock - -
Common stock (10,000 shares) 10,000 10,000
Additional paid-in capital 975,465 975,465
Retained earnings 604,046 398,110
Less: Treasury stock (13,334) -
Total common equity $1,576,177 $1,383,575
Total liabilities and equity $2,653,506 $2,533,771
In addition, it was reported that the company had a net income of $2,679,848 and that depreciation expenses were equal to $454,366 during 2017. Assume amortization expense was $0 in 2017.
a. Construct a 2017 cash flow statement for this firm.
b. Calculate the net cash provided by operating activities for the statement of cash fl ows.
c. What is the net cash used in investing activities?
d. Compute the net cash provided by fi nancing activities.
Answer:
Part a
Cullumber Golf Company
Statement of Cash flow for the Year ended 2017
Cash flow from Operating Activities
Net income $2,679,848
Adjustment for :
depreciation expenses $454,366
decrease in Accounts receivable ($40,463)
increase in Inventory ($52,979)
increase in Other current assets $11,339
increase in Accounts payable and accruals $46,232
Net Cash from Operating Activities $3,098,343
Cashflow from Investing Activities
Purchase of Plant and equipment ($563,821)
Proceeds from sale of Goodwill and other assets $30,420
Net Cash from Investing Activities $533,401
Cash flow from Financing Activities
increase in Notes payable $6,625
Repayment of Long-term debt ($130,034)
increase in Treasury stock ($13,334)
Dividends Paid ($2,473,912)
Net Cash from Financing Activities ($2,610,655)
Movement during the year $16,845
Beginning Cash and Cash Equivalents $16,566
Ending Cash and Cash Equivalents $33,411
Part b
$3,098,343
Part c
$533,401
Part d
($2,610,655)
Explanation:
See Cash flow Statement prepared above using the Indirect method.
Calculation of Dividends Paid
Retained Earnings Schedule
Beginning Balance $398,110
Add Net Income during the Year $2,679,848
Less Ending Balance ($604,046)
Dividends Paid $2,473,912
Dos Passos Company sells televisions at an average price of $900 and also offers to each customer a separate 3-year warranty contract for $90 that requires the company to perform periodic services and to replace defective parts. During 2014, the company sold 300 televisions and 270 warranty contracts for cash. It estimates the 3-year warranty costs as $20 for parts and $40 for labor, and accounts for warranties separately. Assuming sales occurred on December 31, 2014, and straight-line recognition of warranty revenues occurs.
(a) Record any necessary journal entries in 2014:
(b) What liability relative to these transactions would appear on the December 31, 2014, balance sheet and how would it be classified?
In 2015, Dos Passos Company incurred actual costs relative to 2014 television warranty sales of $2,000 for parts and $4,000 for labor.
(c) Record any necessary journal entries in 2015 relative to 2014 television warranties.
(d) What amounts relative to the 2014 television warranties would appear on the December 31, 2015, balance sheet and how would they classified?
Answer:
A. Dr Cash 294,300
Cr Sales Revenue 270,000
Cr Unearned Warranty Revenue 24,300
B. Classified as Current Liabilities
Unearned Warranty Revenue 8,100
Classified as Long term Liabilities
Unearned Warranty Revenue 16,200
C. Dr Unearned Warranty Revenue 8,100
Cr Warranty Revenue8,100
Dr Warranty Expense 6,000
Cr Inventory parts 2,000
Cr Salaries & Wages Payable 4,000
D. Classified as Current Liabilities
Unearned Warranty Revenue 8,100
Classified as Long Term Liabilities
Unearned Warranty Revenue 8,100
Explanation:
(a) Preparation for the necessary journal entries for the year 2014
Dr Cash 294,300
Cr Sales Revenue 270,000
(300*900)
Cr Unearned Warranty Revenue 24,300
(270*90)
(b) Calculation for the liability that would appear on the balance sheet for December 31, 2014, and how they would be classified.
We are going to Classified the liability as Current Liabilities and Long term Liabilities
Classified as Current Liabilities
Unearned Warranty Revenue 8,100
(24,300/3)
Classified as Long term Liabilities
Unearned Warranty Revenue 16,200
(24,300*2/3)
(c) Preparation of journal entry for the year 2015 relative to 2014 television warranties
Dr Unearned Warranty Revenue 8,100
(24,300/3)
Cr Warranty Revenue 8,100
Dr Warranty Expense 6,000
(2,000 +4,000)
Cr Inventory parts 2,000
Cr Salaries & Wages Payable 4,000
(d) Calculation for the amounts relative to the year 2014 television warranties that would appear on the December 31, 2015, balance sheet and how they would be classified.
We are going to Classified the liability as Current Liabilities and Long term Liabilities
Classified as Current Liabilities
Unearned Warranty Revenue 8,100
(24,300/3)
Classified as Long Term Liabilities
Unearned Warranty Revenue 8,100
(24,300/3)
Catherine is a U.S. citizen who is employed by DSC, Inc., a global company. Beginning on August 1, 2020, Catherine began working in Augsburg, Germany. She worked for 153 days of 2020. She worked there until March 31, 2021, when she transferred to Kamnik, Slovenia. She worked in Kamnik for the remainder of 2021. Her salary for the first seven months of 2020 was $225,000, and it was earned in the United States. Her salary for the remainder of 2020 was $165,000, and it was earned in Augsburg. Catherine's 2021 salary from DSC was $425,000, with part being earned in Augsburg and part being earned in Kamnik.
Assume the 2021 indexed statutory amount is the same as the 2020 indexed amount. Assume a 365-day year for both years. When required, round any fractions out to four decimal places.
a. Is Catherine eligible for the foreign income exclusion for 2020?
b. Catherine may exclude ___________ from her gross income for 2020.
Answer:
a. Is Catherine eligible for the foreign income exclusion for 2020?
Yes
b. Catherine may exclude $45,104 from her gross income for 2020.
Explanation:
In order for Catherine to qualify for the foreign income exclusion, she must have lived in a foreign country for at least 1 one (physical presence test). She lived for more than 1 year if we combine her residence in Germany and Slovenia.
The foreign income exclusion amount for 2020 is $107,600, and Catherine can exclude up to (153 days / 365 days) x $107,600 = $45,103.56 ≈ $45,104.
Income Statement, Direct and Indirect Cost Concepts, Service Company Lakeesha Barnett owns and operates a package mailing store in a college town. Her store, Send It Packing, helps customers wrap items and send them via UPS, FedEx, and the USPS. Send It Packing also rents mailboxes to customers by the month. In May, purchases of materials (stamps, cardboard boxes, tape, Styrofoam peanuts, bubble wrap, etc.) equaled $11,350; the beginning inventory of materials was $1,050, and the ending inventory of materials was $950. Payments for direct labor during the month totaled $25,600. Overhead incurred was $18,200 (including rent, utilities, and insurance, as well as payments of $14,050 to UPS and FedEx for the delivery services sold). Since Send It Packing is a franchise, Lakeesha owes a monthly franchise fee of 5 percent of sales. She spent $2,750 on advertising during the month. Other administrative costs (including accounting and legal services and a trip to Dallas for training) amounted to $3,650 for the month. Revenues for May were $102,100.
1. What was the cost of materials used for packaging and mailing services during May?
$
2. What was the prime cost for May?
$
3. What was the conversion cost for May?
$
4. What was the total cost of services for May?
$
Prepare an income statement for May.
Send it Packing
Income Statement
For the Month Ended May 31
Advertising
Cost of services sold
Operating income
Other administrative expenses
Sales revenues
$
Cost of services sold
Franchise fee
Gross margin
Operating income
Other administrative expenses
Franchise fee
Gross margin
Operating income
Other administrative expenses
Sales revenues
$
Operating expenses:
Advertising
Cost of services sold
Gross margin
Operating income
Sales revenues
Cost of services sold
Franchise fee
Gross margin
Operating income
Sales revenues
Cost of services sold
Gross margin
Operating income
Other administrative expenses
Sales revenues
Operating income
Operating loss
$
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Solution
Answer:
1.$11,450
2.37,050
3.43,800
4.55,250
5.35,345
Explanation:
The cost of material used can be calculated by adding purchases and deducting the closing inventory from the opeining inventory. Prime costs consist of direct material and direct labor. conversion cost includes direct labor and overhead cost.
Requirement 1
Cost of materials used = Opening inventory + purchases of material - Closing inventory
Cost of materials used = $1,050 + $11,350 - $950
Cost of materials used = $11,450
Requirement 2
Prime cost = Direct materials + Direct labor
Prime cost = 11,450 + 25,600
Prime cost = 37,050
Requirement 3
Conversion Cost = Direct labor + Overhead
Conversion cost = 25,600 + 18,200
Conversion cost = 43,800
Requirement 4
Total cost = Material + labor + Overhead
Total cost = 11,450 + 25,600 +18,200
Total cost = 55,250
Requirement 5 Income statement
Sales 102,100
Cost of goods sold (55,250)
Gross profit 46,850
Operating expense
Advertising (2750)
Franchising fee (5% X 102,100) (5,105)
Other administrative expense (3,650)
Operating income 35,345
Suppose the data have a bell-shaped distribution with a mean of 25 and a standard deviation of 5. Use the empirical rule to determine the percentage of data within each of the following ranges.
(a) 15 to 35 approximately 68% approximately 95% almost all
(b) 10 to 40 approximately 68% approximately 95% almost all
(c) 20 to 30 approximately 68% approximately 95% almost all
Answer:
a) 15 to 35 approximately 95%
(b) 10 to 40 approximately almost all
(c) 20 to 30 approximately 68%
Explanation:
The data have a bell-shaped distribution which means the data is equally distributed on both sides of the mean.
We have the mean at 25 and a standard deviation of 5 which means that the interval is for each of the values of 5 .
The mean would be u and
The first value would be u ±σ = 25 ± 5= 20 and 30 (68 % )
The second value will be u ± 2σ= 25± 10 = 15 and 35 (95%)
The third value will be u ± 3σ= 25 ± 15 = 10 and 40 (99.7 % almost all)
In the figure below the light blue region gives u ±σ on both sides of the mean
, dark blue gives u ± 2σ values on both sides of the mean and grey gives
u ± 3 σ values on both sides of the mean.
It is obvious that 68 % of the data is contained in the u ±σ light blue region, 95 % of the data in the u ± 2σ dark blue including light blue and 99.7 % in the u ± 3σ all colored regions.
Assume that the fair values of the investee's net assets approximated the recorded book values of the investee's net assets, except the fair value of the investee's identifiable noncurrent assets is $40,000 higher than book value. In addition, the investee's pre-transaction tax bases in its individual net assets approximate their reported book values. This difference relates entirely to tax-deductible items. Assume the marginal tax rate is 40% for the investor and investee. What amount of goodwill should be reported in the investor's consolidated balance sheet prepared immediately after this business combination
Answer:
I could not find the exact details related to this question so here is a similar question to guide you.
Goodwill = Acquisition Price - Net book value (Investee)
= 75,000 - ( Assets - Liabilities)
= 75,000 - ( 90,000 - 40,000)
= $25,000
Identifiable noncurrent assets is overstated by $10,000 however. This will have to be adjusted for tax and then removed from Goodwill to find the Net goodwill that should be reported in the investor's consolidated balance sheet prepared immediately after this business combination.
= 10,000 ( 1 - 40%)
= $6,000
Net Goodwill = 25,000 - 6,000
= $19,000