Answer:
The debit yield ratio is 9%
Explanation:
Rent = 12 units × 12 months × $1,050 = $151,200
Net Operating Income = Rent- Operating expenses - Expected vacancy and collection losses + Garage rent
= $151,200 - $35,700 - $30,240 + $3,840
= $89,100
Debt amount = Price × (1 - Down payment)
= $1,100,000 × (1 - 0.1)
= $990,000
Debt yield ratio = [tex]\frac{Net Operating Income}{Debt}[/tex]
= [tex]\frac{89,100}{990,000}[/tex]
= 9%
agpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% return on invested assets of $700,000. Fixed factory overhead cost $38,700 Fixed selling and administrative costs 7,500 Variable direct materials cost per unit 4.60 Variable direct labor cost per unit 1.88 Variable factory overhead cost per unit 1.13 Variable selling and administrative cost per unit 4.50 The cost per unit for the production and sale of Magpie's product is
Answer:
$12.88
Explanation:
given information
units sold 60,000
desired profit = 25% x $700,000 = $175,000
fixed factory overhead = $38,700
fixed S&A = $7,500
direct materials per unit = $4.60
direct labor per unit = $1.88
variable overhead per unit = $1.13
variable S&A per unit = $4.50
the cost per unit:
direct materials per unit = $4.60direct labor per unit = $1.88variable overhead per unit = $1.13variable S&A per unit = $4.50fixed factory overhead = $38,700 / 60,000 = $0.645fixed S&A = $7,500 / 60,000 = $0.125total cost per unit = $12.88the desired profit = $2.92, so the selling price to achieve the desired profit should = $15.80
Which of the following is a manufacturing cost?
A. Indirect materials
B. Advertising expense
C. Depreciation of the office equipment used by the sales staff
D. Salary of clerical workers
Answer:
A and C
Explanation:
A manufacturing cost is the depreciation of the office supplies utilized by the sales team and indirect materials. As a result, choices (A) and (C) are the correct stuff.
What is manufacturing cost?The cost of all the resources used to produce a product, collectively referred to as the manufacturing cost, is what is considered. Direct labor, direct material costs, and manufacturing overhead make up the three areas that make up the cost of production. The whole cost of delivery is affected by it.
The raw materials known as "direct materials" are those that are included into the finished good. Applying a chain of processes to maintain a deliverable product provides value to raw materials in manufacturing. For example, welding, cutting, and painting are just a few of the many processes that can be used on raw materials. The difference between direct and indirect materials must be understood.
Hence, option (C) is accurate.
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Melrose Company has an investment in bonds issued by Roscoe Industries that are classified as available-for-sale securities. The bonds were purchased at par. At December 31, Year 2, the Investment in Roscoe bonds account had a debit balance of $200,000, representing its amortized cost, and its Fair value adjustment account had a credit balance of $5,000. On December 31, Year 3, the amortized cost of those bonds had not changed, but the fair value of those bonds was $225,000.
Which of the following will be included in the related journal entry dated December 31, Year 3?
a. Debit to Fair value adjustment for $20,000.
b. Credit to Fair value adjustment for $20,000.
c. Debit to Fair value adjustment for $30,000.
d. Credit to Fair value adjustment for $30,000.
Answer:
c. Debit to Fair value adjustment for $30,000.
Explanation:
The Journal entry is shown below:-
On Dec 31,
Fair value adjustment account Dr, $30,000 ($225,000 + $5,000 - $200,000)
To Unrealized holding gain on available for sale securities $30,000
(Being unrealized holding gain is recorded)
Here we debited the fair value adjustment account as it decreased the liabilities and we credited the unrealized holding gain on available for sale securities as it increased the gain so the same is recorded .
Assume that the economy is in long-run equilibrium. Now, assume that there is an unexpected increase in the price of oil. As a result of higher oil prices, the A. short-run aggregate supply curve will shift left. B. long-run aggregate supply curve will shift left. C. short-run aggregate supply curve will shift right. D. aggregate demand curve will shift left. The new short-run equilibrium will be
Answer:
The correct answer is D)
The aggregate demand curve will shift left.
Aggregate supply is stimulated only by labour, capital, and technology.
Equilibrium refers to the price point where demand or supply intersect.
Cheers!
All of the following statements regarding leases are true except _______.
Multiple Choice:
A) For a finance lease, the lessee records the leased item as its own asset.
B) For a finance lease, the lessee amortizes the right-of-use asset acquired under the lease.
C) Finance leases create a liability on the balance sheet.
D) Finance leases do not transfer ownership of the asset under the lease, but operating leases often do.
E) For a short-term lease of a few days or weeks, the lessee records payments as rental expense.
Answer:
I think its D
Explanation:
Hpe this helps.
All of the following statements regarding leases are true except finance leases do not transfer ownership of the asset under the lease, but operating leases often do. Thus, option (d) is correct.
What is finance?
Finance includes borrowing money to go through tough times, saving money, and investing money. Finance is the provision of funds for credit against anything. Personal, public, and business finance are the three different categories.
Capital leases and finance leases are both common terms for the same thing. The duration of long-term leases is usually anticipated. When the operating lease expires, the leasing firm will return the asset.
Therefore, option (d) is correct.
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The December 31, 2020 inventory of Carla Vista Company consisted of four products, for which certain information is provided below. Product Original Cost Replacement Cost Estimated Disposal Cost Expected Selling Price Normal Profit on Sales A $30.00 $28.00 $8.00 $44.00 25.00% B $44.00 $42.00 $10.00 $54.00 20.00% C $124.00 $119.00 $29.00 $210.00 30.00% D $18.00 $15.40 $6.00 $30.00 20.00% Using the lower-of-cost-or-market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2020. (Round answers to 2 decimal places, e.g. 52.75.)
Answer:
Product Lower of cost or market value
A $28
B $42
C $119
D $18
Explanation:
Particulars a b c d e f = d - c
Product Cost Replacement cost Estimated disposal cost Estimated selling price Normal profit in sales Ceiling
A $30 $28 $8 $44 25% $36
B $44 $42 $10 $54 20% $44
C $124 $119 $29 $210 30% $181
D $18 $15.4 $6 $30 20% $24
Product g = f - d × e h = middle value of b , f ,g i j = lower of I and h
Product Floor Designated market value Cost Lower of cost or market value
A $25 $28 $30 $28
B $33.2 $42 $44 $42
C $118 $119 $124 $119
D $18 $18 $18 $18
As we know that the inventory should be recognized at lower value of cost or market value and the same is considered
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 37,000 customers, but actually served 27,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $5.50q
Wages and salaries: $35,200 + $1.70q
Supplies: $1.10q
Insurance: $12,400
Miscellaneous expenses: $8,400 + $0.50q
The company reported the following actual results for February:
Revenue $ 159,800
Wages and salaries $ 70,000
Supplies $ 16,400
Insurance $ 12,400
Miscellaneous expense $ 27,700
Required:
Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Answer and Explanation:
The preparation of company's flexible budget performance report for February is shown below:-
Arrasmith Corporation
Flexible budget performance report
For the month ended February
Planing Activity Flexible Revenue and Actual
budget variance budget spending result
variance
Customer
served 37,000 - 27,000 27,000
Revenue $203,500 $55,000 U $148,500 $11,300 F $159,800
(37,000 × $5.50q) (27,000 × $5.50q)
Expenses
Wages and
salaries $98,100 $17,000 F $81,100 $11,100 F $70,000
(37,000 × 1.70) + 35,200) (27,000 × 1.70) + 35,200
Supplies $40,700 $11,000 F $29,700 $13,300 F $70,000
(37,000 × 1.10) (27,000 × 1.10)
Insurance $12,400 $0 $12,400 0 $12,400
Miscellaneous
expenses $26,900 $5,000 F $21,900 $5,800 U $27,700
(37,000 × 0.50) + 8,400 (27,000 × 0.50) + 8,400
Total
expenses $178,100 $33,000 F $141,500 $18,600 F $126,500
Net operating
income $25,400 $22,000 U $3,400 $29,900 F $33,300
Therefore to reach net operating income we simply deduct the total expenses from Revenue.
Answer and Explanation:
As per the data given in the question,
ArraSmith Corporation
Flexible budget performance report
Planning Activity Flexible Revenue & spending Actual
budget Variance budget Variance Results
Customer served 37,000 27,000 27,000
Revenue $203,500 $55,000 U $148,500 $11,300 F $159,800
Expenses:
Wages and Salaries $98,100 $17,000 F $81,100 $11,100 F $70,000
Supplies $40,700 $11,000 F $29,700 $13,300 F $16,400
Insurance $12,400 0 $12,400 0 $12,400
Miscellaneous expense $26,900 $5,000 F $21,900 $5,800 U $27,700
Total expense $178,100 $33,000 F $145,100 $18,600 F $126,500
Net Operating Income $25,400 $22,000 U $3,400 $29,900 F $33,300
Ann and Jack have been partners for several years. Their firm, A & J Tax Preparation, has been very successful, as the pair agree on most business-related questions. One disagreement, however, concerns the legal form of their business. For the past two years, Ann has tried to convince Jack to incorporate. She believes that there is no downside to incorporating and sees only benefits. Jack strongly disagrees; he thinks that the business should remain a partnership forever. First, take Ann's side, and explain the positive side to incorporating the business. Next, take Jack's side, and state the advantages to remaining a partnership. Lastly, what information would you want if you were asked to make the decision for Ann and Jack?
Answer and Explanation:
The partnership refers to the agreement between the two or more persons, who works as a partners in an organization. The motive of establishing the partnership is to divide the profit and losses in their respective ratio or profit or loss ratio.
On the other hand, the corporation refers to the business organization that reflects the different legal entity with respect to its owners and moreover it involves more statutory compliance.
Based on this the advantage of partnership is to attractive less taxes and less expensive for creating this business organization as it easy to form.
And, the advantage of corporation is limited liability, long life or unlimited life, and the ownership is easily transferable
Pochard Paints manufactures artist’s oil paints. Each 40 ml tube of paint requires 5 minutes of direct labor, and the standard labor rate is $9 per direct labor hour. In September, Pochard incurred 10,800 direct labor hours at a cost of $95,000 to produce 120,000 tubes of paint. Calculate Pochard’s direct labor rate variance for September. (Round answer to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Answer:
Direct labor rate variance= $2,160 favorable
Explanation:
Giving the following information:
The standard labor rate is $9 per direct labor hour.
In September, Pochard incurred 10,800 direct labor hours for $95,000.
To calculate the direct labor rate variance, we need to use the following formula:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 95,000/10,800= $8.80
Direct labor rate variance= (9 - 8.8)*10,800
Direct labor rate variance= $2,160 favorable
It is favorable because the hourly rate was cheaper than estimated.
Which of the following statements is FALSE? Group of answer choices The right discount rate for a cash flow is the rate of return available in the market on other investments of comparable risk and term. To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries. The equivalent after-tax interest rate is r(1 - τ). The actual cash flow that the investor will get to keep will be reduced by the amount of any tax payments.
Answer:
To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries.
Explanation:
Investors are risk averse, this means that they will always prefer those investments with lower risks. Since US treasuries are considered the safest investments, they are used to calculate the risk free rate.
When investors invest in other securities (not US government) they will always demand a higher return because a private entity or even a state or local government can default on a their debt. That difference between the return yielded by a US security and the return from any other investment is called the risk premium.
ASAP HELP ME PLEASE , GIVING BRAINLIEST TO CORRECT AWNSER
Answer:
A
Explanation:
Answer:
because people would have to have good contraptions in order to be able to make free choices
Explanation:
General cultural factors driving global business are
A. the rise of a global workforce, global economies of scale, and global production and operations.
B. growth of a global village spurred by television, the Internet, and computerization.
C. the rise of the global workforce, political stability, and a global knowledge base.
D. global communication and transportation technologies, a global knowledge base, and global social norms.
E. the development of global markets, political stability, and a global workforce.
Answer:
D. global communication and transportation technologies, a global knowledge base, and global social norms.
Explanation:
Global business management process involves identifying, analyzing and planning a business at the international level.
General cultural factors driving global business are global communication and transportation technologies, a global knowledge base, and global social norms.
When starting up a business with the intention to break into the global market successfully, it is important and necessary to ensure the cultural factors driving a business are well managed.
The business should ensure it creates a medium for effective communication by using both the traditional and digital media such as television, radio, billboards, blogs etc. Efficient means of transportation or logistics should be developed for smooth export of their goods and services.
Also, having a well informed knowledge of their niche is key to the success of the business.
Lastly, the business should abide with the global social norms.
Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $25,000; beginning inventory of $2,500 and purchases of $17,500. What is the estimated amount of ending inventory at the end of the period
Answer:
$5,000= ending inventory
Explanation:
Giving the following information:
Gross margin is normally 40% of sales.
Sales= $25,000
beginning inventory= $2,500
purchases= $17,500
First, we need to determine the cost of goods sold:
COGS= 25,000*0.6= 15,000
Now, using the following formula, we can calculate the ending inventory:
COGS= beginning inventory + cost of goods purchased - ending inventory
15,000= 2,500 + 17,500 - ending inventory
5,000= ending inventory
Which of the following statements is consistent with the fact that capital in an economy is subject to diminishing returns? When workers already have a large quantity of capital, giving them an additional unit of capital will not increase productivity. When workers have a relatively small quantity of capital, giving them an additional unit of capital will not increase their productivity. When workers have a relatively large quantity of capital, giving them an additional unit of capital increases their productivity by a large amount. When workers have a relatively small quantity of capital, giving them an additional unit of capital increases their productivity by a relatively large amount.
Answer:
When workers already have a large quantity of capital, giving them an additional unit of capital will not increase productivity.
Explanation:
In simple words, In economics, decreasing returning relates to the phenomenon of reduction in a manufacturing process 's total efficiency as the volume of one particular production factor decreases progressively, whereas the numbers of many other capital resources stay unchanged.
For eg, a manufacturing plant hires employees to make its goods, and the corporate works at an optimum level eventually. With several other persistent output variables, the introduction of additional staff above the optimal point would lead in less productive operations.
Dermody Snow Removal's cost formula for its vehicle operating cost is $2,990 per month plus $329 per snow-day. For the month of December, the company planned for activity of 23 snow-days, but the actual level of activity was 21 snow-days. The actual vehicle operating cost for the month was $10,860. The spending variance for vehicle operating cost in December would be closest to:
Answer:
-$303 Unfavorable
Explanation:
The computation of spending variance is shown below:-
Spending variance = Flexible budget - Actual cost
= (23 × $329 + $2,990) - $10,860
= $7,567 + $2,990 - $10,860
= $10,557 - $10,860
= -$303 Unfavorable
Therefore for computing the spending variance we simply subtracted the actual cost from flexible budget.
Stine Corp.'s trial balance reflected the following account balances at December 31, 2012:
Accounts receivable (net) $24,000
Trading securities 6,000
Accumulated depreciation on equipment and furniture 15,000
Cash 16,000
Inventory 30,000
Equipment 25,000
Patent 4,000
Prepaid expenses 2,000
Land held for future business site 18,000
In Stine's December 31, 2012 balance sheet, the current assets total is
a) $95,000.
b) $78,000.
c) $87,000.
d) $82,000.
Answer:
The total current assets are $78000
Explanation:
Current assets are the assets of a company that are expected to be used or consumed under the normal business operations over the next year.
The current assets of Stine Corp.'s are calculated below.
Current Assets:
Accounts Receivable $24000
Trading securities $6000
Cash $16000
Inventory $30000
Prepaid expenses $2000
Total current assets $78000
Problem 7-18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, LO7-2]Haas Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials$20Direct labor$12Variable manufacturing overhead$7Variable selling and administrative$3Fixed costs per year: Fixed manufacturing overhead$110,000Fixed selling and administrative expenses$50,000 During its first year of operations, Haas produced 40,000 units and sold 40,000 units. During its second year of operations, it produced 55,000 units and sold 30,000 units. In its third year, Haas produced 20,000 units and sold 45,000 units. The selling price of the company’s product is $46 per unit. Required:1. Compute the company’s break-even point in unit sales.2. Assume the company uses variable costing:a. Compute the unit product cost for Year 1, Year 2, and Year 3.b. Prepare an income statement for Year 1, Year 2, and Year 3.3. Assume the company uses absorption costing:a. Compute the unit product cost for Year 1, Year 2, and Year 3.b. Prepare an income statement for Year 1, Year 2, and Year 3.
Answer and Explanation:
As per the data given in the question,
a)
For computation of contribution margin per unit first we need to find out the contribution margin per unit and fixed expenses which is shown below:-
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $46 - ($20 + $12 + $7 + $3)
= $46 - $42
= $4
Fixed expenses = Fixed manufacturing overhead + Fixed selling and administrative expenses
= $110,000 + $50,000
= $160,000
Break-even units = Fixed expenses ÷ Contribution margin per unit
= $160,000 ÷ 4
= 40,000 units
2. a The Computation of unit product cost is shown below:-
Particulars Year 1 Year 2 Year 3
Unit product cost :
Direct material $20 $20 $20
Direct labor $12 $12 $12
Variable manufacturing
overhead $7 $7 $7
Unit product cost $39 $39 $39
b. The preparation of Income statement is shown below:-
Income statement
Haas Company
Particulars Per unit Year 1 Year 2 Year 3
Sales unit 40,000 30,000 45,000
Sales $46 $1,840,000 $1,380,000 $2,070,000
Less:
Variable cost :
Variable manufacturing
cost $39 $1,560,000 $1,170,000 $1,755,000
Variable selling and
administrative cost $3 $120,000 $90,000 $135,000
Total variable cost $42 $1,680,000 $1,260,000 $1,890,000
Contribution margin $4 $160,000 $120,000 $180,000
Fixed expenses :
Fixed Manufacturing
overhead $110,000 $110,000 $110,000
Fixed selling and
administrative expense $50,000 $50,000 $50,000
Net Operating Income $0 -$40,000 $20,000
3. a. The computation of unit product cost for Year 1, Year 2, and Year 3 is shown below:-
Particulars Year 1 Year 2 Year 3
Produced units 40,000 55,000 20,000
Unit Product Cost:
Direct material $20 $20 $20
Direct labor $12 $12 $12
Variable manufacturing
overhead $7 $7 $7
Fixed manufacturing
overhead $2.75 $2 $5.5
($110,000 ÷ Number of unit produced)
Total cost of produced unit $41.75 $41 $44.5
3. b The Preparation of income statement for Year 1, Year 2, and Year 3 is attached in the spreadsheet.
Chiasso Co. reported a retained earnings balance of $200,000 at December 31, 2020. In September 2021, Chiasso determined that insurance premiums of $30,000 for the three-year period beginning January 1, 2020, had been paid and fully expensed in 2020. Chiasso has a 25% income tax rate. What amount should C report as adjusted beginning retained earnings in its 2021 statement of retained earnings?
Answer:
$215,000
Explanation:
Retained Earning is an equity account and its balance is credit in nature. It is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.
Any prior years adjustment in the revenue and expense will be recorded in the retained earning because it carry the accumulated profit all the prior years.
The premium on insurance for only one year should be recorded, but premium of 3 years is expense in 2020, from which there is an advance premium of 2 years.
Adjustment Value = $30,000 x 2/3 x (1-0.25) = $15,000
The adjustment should be added in the retained earning balance as it was expensed earlier.
Adjusted retained earning balance = $200,000 + $15,000 = $215,000
Harry and Meghan have considered starting their own business but are concerned about the possibility of losing even their personal assets if the business fails. One way for BOTH Harry and Meghan to avoid this liability risk would be to :
A.
divorce as soon as possible and establish two sole proprietorships
B.
Organize a limited partnership with Harry as the general partner
C.
set up offshore accounts
D.
form a corporation
Answer:
The correct option is D,form a corporation
Explanation:
The rationale for my choice of answer is that limited liability applies to a corporation which is found in other types of businesses.
Limited liability is a concept which implies that the liability of shareholders in a limited liability company is limited to the amount contributed to the business by a way of shares held in the company.
When a company runs into debt,the shareholders would not be required to make up such debts from their private pockets,hence Harry and Meghan personal effects are secure.
The way for Harry and Meghan to avoid liability risk is to form a corporation
Typically, a limited liability applies to a corporation which means that the owner liability is limited to the amount he owns in the business.
Limited liability implies that liability of shareholders is limited to the amount contributed to the business by a way of shares held in the company.
So, when company runs into debt, the shareholders would not be required to make up such debts from their private pockets,therefore, the investment of Harry and Meghan are secure.
Hence, the only way for Harry and Meghan to avoid liability risk is to form a corporation
Therefore, the Option D is correct.
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Ellie (a single taxpayer) is the owner of ABC, LLC. The LLC (a sole proprietorship) reports QBI of $900,000 and is not a specified services business. ABC paid total W-2 wages of $300,000, and the total unadjusted basis of property held by ABC is $30,000. Ellie's taxable income before the QBI deduction is $740,000 (this is also her modified taxable income). What is Ellie's QBI deduction for 2019
Answer:
QBI deduction for 2019 is $148,000
Explanation:
Description Amount
Taxable income before QBI deduction
exceed $207,500 threshold.
Capital investment limit is considered
QBI deduction is lesser of:
1) 20% of qualified business income $180,000
($900,00 × 20%)
or Greater of
2) 50% 0f W-2 wages $150,000
($300,000 × 50%)
or
25% 0f W-2 wages + 2.5% of unadjustment
basis pf qualified property
($300,000 × 25%) + ($300,000 × 2.5%) $75,750
3)Not more than 20% of modified taxable income
($740,000 × 20%) $148,000
Therefore, QBI deduction for 2019 is $148,000
Hardware is adding a new product line that will require an investment of $ 1 comma 476 comma 000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $ 300 comma 000 the first year, $ 290 comma 000 the second year, and $ 240 comma 000 each year thereafter for eight years. Assume the project has no residual value. Compute the ARR for the investment. Round to two places
Answer:
42,51%
Explanation:
Accounting Rate of Return (ARR) = Average Profits / Average Investment
Calculation of Average Profits
Average Profit = Sum of Profits / Number of Years
= (300,000+290,000+240,000×8)/10
= $2,510,000 / 8
= $313,750
Calculation of Average Investment
Average Investment = Initial Investment + Scrape Value / 2
= $1,476,000/2
= $738,000
Accounting Rate of Return (ARR) = $313,750/$738,000×100
= 42,51%
As of December 31, 2020, Gill Co. reported accounts receivable of $216,000 and an allowance for uncollectible accounts of $8,400. During 2021, Gill recorded $1,007,800 of credit sales, collections of $978,000, and wrote off $7,800 of bad debts. An analysis of Gill Co.'s December 31, 2021, accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. Bad debt expense for 2021 would be:
Answer:
$6,574
Explanation:
Allowance for uncollectible accounts is a contra asset account and it has credit nature. It needs to be debited to decrease the balance and credited to increase the balance. Balance of this account is adjusted in the account receivable to report the net receivable balance in the balance sheet.
As per given data
Beginning allowance for uncollectible accounts balance = $216,000
Write off is the adjustment mad in this account and it needs to be debited in this account, this transaction will reduce the balance.
Adjusted Balance = $8,400 - 7,800 = $600
Account receivable balance = $216,000 + 1,007,800 - $978,000 = $245,800
Estimated allowance for uncollectible accounts balance = $245,800 x 3% = $7,374
As allowance for uncollectible accounts has already have balance of $600, Bad debt expense for the year is $6,574 ($7,374 - $800)
The corporate charter of Andromeda Co. authorized the issuance of 21 million, $1 par common shares. During 2021, its first year of operations, Andromeda had the following transactions: January 1 sold 6 million shares at $26 per share June 3 purchased 13 million shares of treasury stock at $29 per share December 28 sold the 4 million shares of treasury stock at $31 per share What amount should Andromeda report as additional paid-in capital in its December 31, 2021, balance sheet
Answer:
$158 million
Explanation:
The computation of total additional paid in capital is shown below:-
Paid in capital in excess of par value-Common Stock = ($26 - 1) × 6 million
= 25 × 6 million
= $150 million
Paid in capital from sale of treasury Stock = ($31 - $29) × 4 million
= $8 million
Total additional paid in capital = Paid in capital in excess of par value-Common Stock + Paid in capital from sale of treasury Stock
= $150 million + $8 million
= $158 million
So, for computing the total additional paid in capital we simply applied the above formula.
You want to invest in a project in LaLaLand. The project has an initial cost of LLL 757,000 and is expected to produce cash inflows of LLL 396,000 a year for 3 years. The project will be worthless after that. The expected inflation rate in LaLaLand is 4% while it is only 3% in the U.S. The applicable interest rate for a project like this in LaLaLand is 12%. The current spot exchange rate is LLL1 = $2.3456.
What is the Net Present Value of this project in Lalaland's currency.(i.e., in "LLL")?
Answer:
194,112.8
Explanation:
The computation of Net Present Value is shown below:-
Net Present Value = Present value of cash inflows - Present value of Cash outflows
= -757,000 + 396,000 × PVAF (12%, 3 years)
= -757,000 + 396,000 × 2.4018
= -757,000 + 951,112.8
= LLC 194,112.8
= 194,112.8
Therefore for computing the net present value we simply applied the above formula.
You are the CEO and Manager of MathFair (a Math based theme park, obviously) that charges: children $2, adults $5, and vets $3. You are looking over the books for last weekend. 1,900 people came to the park. You took in $6,300. There were 100 unaccompanied children (that is, the number of children was 100 more than the number of adults and vets combined). How many children, adults, and vets visited Math Fair last weekend
Answer:
700 adults
800 children
400 vets
Explanation:
children $2
adults $5
vets $3
1,900 came to the park, total revenue = $6,300
number of children was 100 more than adults
Let:
C = number of children
A = number of adults
V = number of vets
2C + 5A + 3V = 6,300
C + A + V = 1,900
C = A + 100 (we can replace C with A)
2(A + 100) + 5A + 3V = 6,300 ⇒ 2A + 200 + 5A + 3V = 6,300
7A + 3V = 6,100
A + 100 + A + V = 1,900 ⇒ 2A + V + 100 = 1,900
2A + V = 1,800
7A + 3V = 6,100
2A + V = 1,800 ⇒ V = 1,800 - 2A (we can replace V)
7A + 3 (1,800 - 2A) = 6,100
7A + 5,400 - 6A = 6,100
A = 6,100 - 5,400 = 700
C = A + 100 = 800
V = 1,900 - 700 - 800 = 400
Tom, Dan and Phil work indifferent teams at Springfield Automotive. Tom's team ensures that all the raw materials, machinery, tools and other production equipment are available for the employees around the clock. Any procurement needs have to be addressed to Tom, who also takes part in high-level decisions regarding the number of units to produced, exported and so on. Dan works as part of a team of eight members who concentrate the day-to-day productions; they also ensure that the quality checks are done and inspect each other's work. Phil is the operations manager, who works for 5 hours in the production department and then spends the rest of his time assisting management as an internal consultant on manufacturing issues. His input is crucial in improving the production process. Dan's contribution is toward the __________.
Answer: Work team
Explanation: Dan's contribution is towards the work team whereas Phil works in the parallel team while Tom is part of the management team. a work team which Dan is a member of is defined as a group of workers or employees with different set of skills that work together on a given task such as the day-to-day productions in a business, quality control and inspection, etc. Work teams are most efficient or useful where there is a frequent change in job content and employees with limited skills and a specific set of duties are unable to cope (work teams thus provide expert advice that will increase the ability of employees to participate in planning, problem-solving, and decision-making that are needed to complete a set of work and to better serve customers).
Here are the comparative income statements of Cullumber Corporation. CULLUMBER CORPORATION Comparative Income Statement For the Years Ended December 31 2022 2021 Net sales $639,400 $578,200 Cost of goods sold 464,800 433,400 Gross Profit 174,600 144,800 Operating expenses 70,500 43,000 Net income $ 104,100 $ 101,800 (a) Prepare a horizontal analysis of the income statement data for Cullumber Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)
Answer:
Explanation:
Horizontal analysis of financial statements is a system of comparing each item of financial statement in a previous year to the current year with each line item analysis expressed in a horizontal pattern for clear comparison.
The change in growth is calculated by deducting the previous year's value of an item of the financial statement from the current year while the percentage growth is calculated by calculating the growth value as a percentage of the previous year value
2022 2021 Change % Change
Net sales 639,400 578,200 61,200 10.6%
Cost of goods 464,800 433400 31,400 7.3%
Gross profit 174,600 144,800 29,800 20.6%
Operating exp. 70,500 43,000 27,500 70%
Net Income 104,100 101,800 2,300 2.26%
Your client has $80,000 invested in stock A. She would like to build a two-stock portfolio by investing another $80,000 in either stock B or C. She wants a portfolio with an expected return of at least 15% and as low a risk as possible, the standard deviation must be no more than 25%. Expected Return Standard Deviation Correlation With A A 18% 30% 1.0 B 17% 25% 0.3 C 15% 15% 0.4_____
Answer: Please see below for answer
Explanation:
Expected Return Standard Deviation Correlation With A
A 18% 30% 1.0
B 17% 25% 0.3
C 15% 15% 0.4_____
Expected return of A (RA) = 18%
Expected return of B (RB) = 17%
Standard Deviation of A (σA) = 30%
Standard Deviation of B (σB) = 25%
Weight of A (WA) = 50% (Since equal amount of $80,000 is being invested)
Weight of B (WB) = 50%
Correlation = 0.3
Portfolio Returns = WARA + WBRB = (18%*50%) + (17%*50%) = 17.5%
Portfolio Standard Deviation = (WA2 * σA2 + WB2 * σB2 + 2*(WA)*(WB)*CorrelationAB* σA* σB)(1/2)
= [(50%2 X 30%2) + (50%2 X 25%2) + (2 X 50% X 50%X 0.3 X 30% X 25%)](1/2)
=0.0025 +0.015625+SQR 0.01125
=0.0025+0.015625+0.1061=0.1241= 12.4%
If Invested in Stock C
Expected return of A (RA) = 18%
Expected return of C (RC) = 15%
Standard Deviation of A (σA) = 30%
Standard Deviation of C (σC) = 15%
Weight of A (WA) = 50% (Since equal amount of $80,000 is Being invested)
Weight of C (WC) = 50%
Correlation = 0.4
Portfolio Returns = WARA + WCRC = (18%*50%) + (15%*50%) = 16.5%
Portfolio Standard Deviation = (WA2 * σA2 + WC2 * σC2 + 2*(WA)*(WC)*CorrelationAC* σA* σC)(1/2)
= [(50%²X 30%²) + (50%² X 15%²) + (2 X 50% X 50%X 0.4 X 30% X 15%)]^1/2
= 0.0025+0.005625+ SQR 0.009= 0.1029= 10.29%= 10.3%
The expected return and standard deviation if invested in Stock B is 17.5% and 12.4% while that of STOCK C is 16.5% and 10.2 % but the client wants expected return of at least 15% and at low risk as possible with standard deviation not more than 25%, it is advised that the client invest in stock C as the values obtained are more towards her choice.
Which marketing function that involves communicating information about products
and services to potential customers?
a) Strategic planning
b) Promotion
c) Distribution
O d) Product development
Laurey Inc. is working on its cash budget for May. The budgeted beginning cash balance is $45,000. Budgeted cash receipts total $129,000 and budgeted cash disbursements total $124,000. The desired ending cash balance is $60,000. To attain its desired ending cash balance for May, how much does the company need to borrow
Answer:
The company needs to borrow $10,000
Explanation:
First, let us state the information given clearly:
Beginning cash balance = $45,000
total cash receipt = $129,000
total cash disbursement = $124,000
desired ending cash balance = $60,000
Next Let us calculate the net cash available after the period's transactions:
Net available cash from transactions = total receipt - total disbursements
= 129,000 - 124,000 = $5,000
Next we were told that the beginning balance = $45,000
This means that without borrowing ;
the net ending cash balance = Net available cash from transactions + beginning cash balance = 5,000 + 45,000 = $50,000
Finally, we are told that the desired ending cash balance = $60,000, and the amount of cash available = $50,000, therefore to meet up the target, the amount that needs to be borrowed is calculated thus:
desired ending cash = available cash + borrowed amount
60,000 = 50,000 + borrowed amount
∴ borrowed amount = 60,000 - 50,000 = $10,000
hence the company needs to borrow $10,000
