Answer:
-51,784
Explanation:
Net present value can be calculated by first calculating the present values of operating cash flows each year and the sum up all the present values.
Year 0 1 2 3
Operating CF 35000 31500 28350
Fixed asset -134000
Net working capital -24000 24000
Disposal after tax 16250
(25000x0.65)
Net cashflow -158000 35000 31500 68600
PV Factor 1 0.896 0.804 0.721
PV -158000 31390 25337 49488
NPV = -158000 + 31390 + 25337 + 49488
NPV = -51,784
Workings
PV Factor
Year 0 = 1/(1.115)^0 = 1
Year 1 = 1/(1.115)^1 = 0.896
Year 2 = 1/(1.115)^2 = 0.804
Year 3 = 1/(1.115)^3 = 0.721
You can buy a property today for $4 million and sell it in 6 years for $5 million. You will not earn any rental income on the property. Answer the following questions. a.) If the interest rate is 5%, what is the present value of the sales price? _____________ (4 pts) b.) Is this a good investment for you? Explain your answer ____________________________ _______________________________________________________________________(4 pts) c.) If the interest rate is 5%, what is the present value of the sales price if you also earned $200,000 in rental income each year? _______________________________________________(4 pts)
Answer:
a. Present value = $3,731,076.98
It is not a good investment because the present value of the sales price is less than the purchase price of the property. This means that purchasing the property would be unprofitable.
c. Present value = $4,746,215.40
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
a. Cash flow each year from year 1 to 5 = 0
Cash flow in year 6 = $5,000,000
I = 5%
Present value = $3,731,076.98
It is not a good investment because the present value of the sales price is less than the purchase price of the property. This means that purchasing the property would be unprofitable.
c. Cash flow each year from year 1 to 5 = $200,000
cash flow in year 6 = $200,000 + $5,000,000 = $5,200,000
I = 5%
Present value = $4,746,215.40
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Calculating the Predetermined Overhead Rate, Applying Overhead to Production, Reconciling Overhead at the End of the Year, Adjusting Cost of Goods Sold for Under- and Overapplied Overhead At the beginning of the year, Han Company estimated the following: Overhead $582,400 Direct labor hours 80,000 Han uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 6,950. By the end of the year, Han showed the following actual amounts: Overhead $613,320 Direct labor hours 84,100 Assume that unadjusted Cost of Goods Sold for Han was $927,000.
Required:
1. Calculate the predetermined overhead rate for Han. Round your answer to the nearest cent. $ per direct labor hour
2. Calculate the overhead applied to production in January. (Note: Round to the nearest dollar.) $
3. Calculate the total applied overhead for the year. $ Was overhead over- or underapplied? By how much? overhead $
4. Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance.
Answer:
Instructions are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 582,400/80,000
Predetermined manufacturing overhead rate= $7.28 per direct labor hour
Now, we can allocate overhead based on actual hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
January:
Allocated MOH= 7.28*6,950= $50,596
Year:
Allocated MOH= 7.28*84,100= $612,248
Now, we can determine the under/over allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 613,320 - 612,248
Under/over applied overhead= $1,072 underallocated
If overhead is underallocated, the cost of goods sold should increase:
Adjusted COGS= 927,000 + 1,072= $928,072
Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2019, and December 31, 2020. This information is presented below:
Cost Lower-of-Cost-or-Market
12/31/19 $356,000 $327,000
12/31/20 420,000 395,000
(a) Prepare the journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/19 12/31/20
(b) Prepare journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/19 12/31/20
(c) Which of the two methods above provides the higher net income in each year?
Answer:
1. 12/31/19
Dr Cost of Goods Sold29,000
Cr Allowance to reduce29,000
Inventory to Market
12/31/20
Dr Allowance to Reduce 4,000
Inventory to Market
Cr Cost of Goods Sold 4,000
2. 12/31/19
Dr Loss due to market 29,000
Decline of Inventory
Cr Allowance to reduce29,000
Inventory to Market
12/31/20
Dr Allowance to Reduce 4,000
Inventory to Market
Cr Loss due to market 4,000
Decline of Inventory
C) Both the two methods provides the same net income each year
Explanation:
1. Preparation of the journal entries for both December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and perpetual inventory system
First step is to compute for inventory to market for December 31, 2019 and December 31, 2020
December 31, 2019
Cost of inventory at 12/31/19 $356,000
Less:Lower of cost or market at 12/31/19 (327,000)
Allowance amount needed to reduce inventoryto market (a)$29,000
December 31, 2020
Cost of inventory at 12/31/20 $420,000
Less: Lower of cost or market at 12/31/20(395,000)
Allowance amount needed to reduce inventoryto market (b)$25,000
Second step is to find the Recovery of previously recognized loss amount
Recovery of previously recognized loss = (a) – (b)
Recovery of previously recognized loss= $29,000 - $25,000
Recovery of previously recognized loss= $4,000
Now let prepare the Journal entry for December 31, 2019 and December 31, 2020
12/31/19
Dr Cost of Goods Sold29,000
Cr Allowance to reduce29,000
Inventory to Market
12/31/20
Dr Allowance to Reduce 4,000
Inventory to Market
Cr Cost of Goods Sold 4,000
2. Preparation for the journal entries for both Dec. 31, 2019 and Dec 31, 2020,assuming that the inventory is recorded at market under a perpetual system
12/31/19
Dr Loss due to market 29,000
Decline of Inventory
Cr Allowance to reduce29,000
Inventory to Market
12/31/20
Dr Allowance to Reduce 4,000
Inventory to Market
Cr Loss due to market 4,000
Decline of Inventory
C) Both the two methods provides the same net income each year
Your annual sales are $217,000. The sales are spread evenly over four quarters except that sales in the first quarter are double any other quarter. What are your sales in the first quarter of the year?
Answer:
86,800
Explanation:
Answer:
it’s 86800
Explanation:
Tamarisk, Inc. began operations on April 1 by issuing 51,000 shares of $4 par value common stock for cash at $20 per share. On April 19, it issued 2,000 shares of common stock to attorneys in settlement of their bill of $26,300 for organization costs. In addition, Tamarisk issued 900 shares of $2 par value preferred stock for $6 cash per share. Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded.
Answer:
Tamarisk, Inc.
Journal Entries:
April 1:
Debit Cash Account $1,020,000
Credit Common Stock $204,000
Credit Paid-in Capital In Excess $816,000
To record the issue of 51,000 $4 par value common stock shares at $20 per share.
April 19:
Debit Organization Expense $26,300
Credit Common Stock $8,000
Credit Paid-in Capital In Excess - Common Stock $18,300
To record the issue of 2,000 shares in settlement of attorneys' organization costs.
April 19:
Debit Cash Account $5,400
Credit Preferred Stock $1,800
Credit Paid-in Capital In Excess -Preferred Stock $3,600
To record the issue of 900 shares of $2 par value preferred stock for $6 cash.
Explanation:
Tamarisk, Inc. uses the general journal entries to record business transactions as they occur on a daily basis. Journal entries are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.
A restaurant prepares 200.00 pizza slices and sells them at a rate of $12.00/slice. Expenses for the restaurant include raw material for pizza at $5.00 per slice, $103.00 for monthly rental and monthly insurance of $30.00. Lost sale are taken as $6.00 per unhappy customer. Leftover pizza can be sold for $2.00. The restaurant is open only for 25 days in a month. Today there was a party at nearby office so the demand for pizza went up to 223.00 slices. How much profit could the restaurant earn today?
Answer:
$1428
Explanation:
Profit = Total Revenue - total cost
total revenue = price x quantity sold
total cost = variable cost + fixed cost
total revenue = 223 x $12 = $2676
Variable cost = $5 x 223 = $1115
total fixed cost = $103.00 + $30.00 = $133.00.
Total cost = $1115 + $133 = $1248
profit = $2676 - $1248 = $1428
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $890,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Years Amount
1-6 $89,000
7 79,000
8 69,000
9 59,000
10 49,000
If purchased, the restaurant would be held for 10 years and then sold for an estimated $790,000.
Required:
Determine the present value, assuming that John desires an 11% rate of return on this investment. (Assume that all cash flows occur at the end of the year.) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
Answer:
$763,057
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1-6 = $89,000
Cash flow in year 7 = 79,000
Cash flow in year 8 = 69,000
Cash flow in year 9= 59,000
Cash flow in year 10 = 49,000 + $790,000 = 839,000
I = 11%
Present value = $763,057
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
7. Problems and Applications Q7 A dozen eggs cost $0.96 in December 2000 and $2.75 in December 2015. The average wage for workers in private industries was $14.28 per hour in December 2000 and $21.26 in December 2015. By what percentage did the price of a dozen eggs rise? 65% 179% 186% By what percentage did the wage rise? 15% 49% 134% In order to earn enough to buy a dozen eggs, a worker had to work minutes in December 2000 and minutes in December 2015. Workers' purchasing power in terms of eggs between 2000 and 2015. g
Answer:
By what percentage did the price of a dozen eggs rise?
[($2.75 - $0.96) / $0.96] x 100 = 186.46%By what percentage did the wage rise?
[($21.26 - $14.28) / $14.28] x 100 = 48.88%In order to earn enough to buy a dozen eggs, a worker had to work 4.04 minutes in December 2000 and 7.76 minutes in December 2015.
($0.96 / $14.28) x 60 = 4.04 minutes($2.75 / $21.26) x 60 = 7.76 minutesWorkers' purchasing power in terms of eggs between 2000 and 2015.
purchasing power in terms of eggs in 2000 = 14.875 dozens of eggs per hourpurchasing power in terms of eggs in 2015 = 7.76 dozens of eggs per hour_______ policy involves government changes to spending or taxation to affect the economy.
Budgetary
Fiscal
Inflation
Monetary
Answer:
The answer is B: Fiscal
Explanation:
Fiscal policy involves changes in the overall government spending and/or the overall level of taxation and the budgetary position.
Edge2020
Good luck, Stay safe!
Fiscal policy involves government changes to spending or taxation to affect the economy.
What is Fiscal policy?Fiscal policy occurs when government make use o policies like tax to increase or improve the nations economy.
The spendings of the government can also be used as a policy to improve the economy.
Therefore, Fiscal policy involves government changes to spending or taxation to affect the economy.
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Frinut Company estimates the following overhead costs for the coming year: Equipment depreciation $250,000 Equipment maintenance 50,000 Supervisory salaries 20,000 Factory rent 100,000 Total $420,000 Frinut budgeted $600,000 in direct labor costs and 14,000 machine hours for the coming year. (a) Incorrect answer iconYour answer is incorrect. Calculate the predetermined overhead rate using direct labor costs as the allocation base. (Round answer to 2 decimal places, e.g. 15.25.) Predetermined overhead rate $enter the predetermined overhead rate in dollars per direct labor 1.7 per direct labor Attempts: 1 of 1 used (b) Incorrect answer iconYour answer is incorrect. Calculate the predetermined overhead rate using machine hours as the allocation base. (Round answer to 2 decimal places, e.g. 15.25.) Predetermined overhead rate $enter the predetermined overhead rate in dollars per machine hour 72.86 per machine hour
Answer:
$0.70 per direct labor hour
$30 per direct labor hour
Explanation:
The computation is shown below:
a. For predetermined overhead rate using direct labor costs is
= Estimated overhead ÷ estimated direct labor cost
= $420,000 ÷ $600,000
= $0.70 per direct labor hour
b. For the predetermined overhead rate using machine hours is
= Estimated overhead ÷ estimated machine hours
= $420,000 ÷ 14,000 machine hours
= $30 per direct labor hour
Suppose a firm’s managers receive bonuses that increase with the size of the firm’s ROE, which was 30% last year and is forecasted to remain at this level during the coming year provided the firm takes on no new expansion projects. Its cost of capital is 10%. Now the firm has the opportunity to make a new investment that promises 20% return on invest capital. Which of the following statements is not correct?a. The example in this question demonstrates the serious weakness in using ROE as the primary criterion in setting executive compensation.b. The new project should be rejected because, if it is accepted, the firm's ROE will decline from 30% because the new ROE will be a weighted average of the old 30% and the 20% returns on the new investment.c. The new project should be accepted because it expected return exceeds the cost of the capital that will be used to finance it.
Answer:
.b. The new project should be rejected because, if it is accepted, the firm's ROE will decline from 30% because the new ROE will be a weighted average of the old 30% and the 20% returns on the new investment
Explanation:
ROE means return on equity
ROE = Net income / shareholders equity
A project should be undertaken if the ROE of the project is greater than the cost of equity
Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 38,000 units, 100% complete as to materials and 55% complete as to conversion. Units started and completed: 123,000. Units completed and transferred out: 161,000. Ending Inventory: 36,500 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $56,000. Costs in beginning Work in Process - Conversion: $61,850. Costs incurred in February - Direct Materials: $375,730. Costs incurred in February - Conversion: $612,150. Calculate the cost per equivalent unit of conversion.
Answer:
cost per equivalent unit of conversion = $4.10
Explanation:
beginning WIP = 38,000
100% complete for materials
55% complete for conversion, 45% remaining to be completed
units started and completed = 123,000
units completed and transferred out = 161,000 (including 38,000 of beginning WIP)
ending WIP = 36,500
100% complete for materials
25% complete for conversion
equivalent units processed during this period:
materials = 123,000 + 36,500 = 159,500 EUP
conversion costs = (38,000 x 0.45) + 123,000 + (36,500 x 025%) = 149,225 EUP
cost per equivalent unit of conversion = $612,150 / 149,225 EUP = $4.102194672 ≈ $4.10
Ms. Shaver, a single taxpayer, has $213,000 taxable income, which includes a $19,580 qualified dividend from Benbow Inc. Use Tax rates for capital gains and qualified dividends. Required: Compute her income tax on this dividend assuming that on the basis of Ms. Shaver’s instruction, Benbow made a $19,580 direct deposit into her bank account. Compute her income tax on this dividend assuming that on the basis of Ms. Shaver’s instruction, Benbow reinvested the dividend in additional Benbow shares.
Answer:
Reinvested will be "$ 2,937". The further explanation is given below.
Explanation:
According to the IRS, on either the order of the corresponding lender, the cash dividend earned or reinvested seems to be taxable during the same year.
Income tax on dividend will be:
⇒ [tex]19,580\times 15 \ percent[/tex]
⇒ [tex]2,937[/tex] ($)
When the amount is reinvested, the income tax will be:
⇒ [tex]19,580\times 15 \ percent[/tex]
⇒ [tex]2,937[/tex] ($)
How does the format of a memo differ from that of an e-mail? please answer asap
(high school not collage)
Memos use an indirect opening instead of a direct opening.
Memos omit a closing signature.
Memos include a subject
Answer: Memos omit a closing signature.
(I took the test and this was the answer)
What are the main parts of a cover letter and their purposes?
Answer:
The introduction: Whenever possible, indicate how you came to apply to the company, such as...
responding to an advertised opening
having identified the company through research (do not use this if you didn't do the research as it may be obvious to the employer)
reading about the company or its executives in a publication
receiving a referral from John Jones at XYZ company
The body: It is important to highlight your qualifications and strengths as they relate to the requirements of the position. Amplify or augment information contained in your resume (rather than merely repeating it) and include a few strengths or personal qualities.
The closing: If the position was unadvertised and the resume is unsolicited, indicate that you will follow up in a few days. If you are responding to an advertised position, indicate you are looking forward to the opportunity to discuss how you can contribute to the success of the organization.
Explanation:
The main parts of a cover letter are the Introduction, Sales Pitch, and Conclusion which help people to achieve the objective for which it is written.
What is a cover letter?A one-page professional letter is submitted with your resume when you apply for a job is known as a cover letter. It allows you to reveal a personal side while proving why choosing you is a wise choice.
The cover letter should serve as an argumentative essay that explains to the employer why you are a strong candidate for the position. Include concrete situations from your prior experience that demonstrate your suitability for the job.
The main parts of a cover letter are the Introduction, Sales Pitch, and Conclusion which helps to introduce a person in front of the employer and help to make convince through their conversation about suitability for a particular role.
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EcoFabrics has budgeted overhead costs of $945,000. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 450,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $360,000, and $585,000 is allocated to the design cost pool.Additional information related to these pools is as follows:Machine hours wool: 100,000Number of set ups wool: 1,000Machine hours cotton: 100,000Number of set ups cotton: 500Machine hours total: 200,000Number of setups total: 1,500The amount of overhead allocated to the wool product line and the cotton product line using activity-based costing & traditional approach is as follows:ABC wool: $570,000Traditional wool: $472,500ABC cotton: $375,000Traditional cotton: $472,500Required:How does allocation using the traditional approach compare with the amount allocated using ABC?
Answer:
The main advantage of using ABC costing method is that it is more exact than traditional costing, and overhead costs are generally allocated on different basis (cost drivers) which results in a more fair distribution.
In this case, overhead costs allocated based solely on direct labor hours might be over or under stated since certain manufacturing procedures might require a lot of labor but few machines, while others might require few labor and a lot of machines.
Cutting is done mostly by machines while design is done mostly by employees. Allocating cutting overhead costs based on machine hours makes sense. Since both wool and cotton require the same amount of machine hours, cutting costs are allocated equally between them.
On the other hand, design is carried out by employees, so allocating design costs based on set ups (which is also carried out by employees) makes sense. That is why most of design costs are allocated to wool (wool requires 67% of setups).
Before under the traditional method, overhead costs were allocated evenly, but once we start allocating them based on more real cost drivers, the total amounts change.
cite three real life situations where quadratic equations are illustrated. Formulate quadratic equations out of these situations then describe each.
Answer:
I want to know the sides of a pizza if the width is 9 inches larger than the height and the area is 250 squared inches.
My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.
My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.
Explanation:
To solve this you just have to think on the unknown value and represent it as "X" in the first problem we do not know the length or width but we have a values given between them, so if "x" is the height then the width becomes "x+9" so those two values multiplied become the area.
[tex]x(x+9)=250\\x^{2} +9x=250\\x^{2} +9x-250=0\\[/tex]
With this you just keep solving the others.
My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.
2m as an area and the height is "x"
[tex]x(x+-5)=2\\x^{2} +.5x=2\\x^{2} +.5x-2=0\\[/tex]
My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.
57,600 is the area and width will be "x"
[tex]x(x+200)=57,600\\x^{2} +200x=57,600\\x^{2} +200x-57,600=0\\[/tex]
A three-year bank CD paying 7.23 percent compounded quarterly. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % eTextbook and Media A three-year bank CD paying 7.03 percent compounded monthly. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % eTextbook and Media A three-year bank CD paying 7.53 percent compounded annually. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % eTextbook and Media Which of the above investments has the highest effective annual interest rate (EAR)?
Answer:
Follows are the solution to the question:
Explanation:
m = 4,
EAR = [tex](1 + \frac{0.08}{4}) \times 4-1[/tex]
[tex]= 1 + 0.02 \times 4-1\\\\= 1 + 0.08 -1\\\\= 0.08\\\\[/tex]
The successful quarter cumulative rate of interest = 8.24 \%
In Method 2 use Tool in Texas:
By Using the (ICONV) worksheet:
1)
To pick the worksheet, click ICONV 2.
2)
Its previous meaning will represent the NOM.
3)
To clear the worksheet, click [CLR WORK] 2nd
Continue as below.
Displayed keystrokes:
NOM = previous value 2nd ICONV:
NOM = 0.00 2nd CLRWORK:
8 DAYS: Name = 8.00.
EFF: DownArrow = 0.00
DownArrow: C / Y = meaning previous
4)
DOS: C / Y = 5.00 p.m.
EFF: DownArrow = 0.00
CPT: FRP = 8.24
Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,450 1,840 2,330 2,710 Tax 3,130 2,650 2,300 2,800 Consulting 1,640 1,640 1,640 1,640 Average hourly billing rates are auditing $84, tax $94, and consulting $105. Prepare the service revenue (sales) budget for 2020 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.
Answer and Explanation:
The Preparation of service revenue is prepared below:-
For Quarter 1
Billable Hours Billable rate Total
Auditing 2,450 84 205,800
Tax 3,130 94 294,220
Consulting 1,640 105 172,200
Total 672,220
For Quarter 2
Billable Hours Billable rate Total
Auditing 1,840 84 154,560
Tax 2,650 94 249,100
Consulting 1,640 105 172,200
Total 575,860
For Quarter 3
Billable Hours Billable rate Total
Auditing 2,330 84 195,720
Tax 2,300 94 216,200
Consulting 1,640 105 172,200
Total 584,120
For Quarter 4
Billable Hours Billable rate Total
Auditing 2,710 84 227,640
Tax 2,800 94 263,200
Consulting 1,640 105 172,200
Total 663,040
Now the total revenue is
= $575,860 + $584,120 + $663,040
= $1,823,020
For Quarter 1: The Preparation of service revenue is 672,220
For Quarter 2: 575,860
For Quarter 3: 584,120
For Quarter 4: The total revenue is = $1,823,020
Calculation of Total revenueWhen The Preparation of service revenue is prepared below:-
For Quarter:1 is
Billable Hours Billable rate Total
Auditing 2,450 84 205,800
Tax 3,130 94 294,220
Consulting 1,640 105 172,200
Total 672,220
For Quarter:2 is
Billable Hours Billable rate Total
Auditing 1,840 84 154,560
Tax 2,650 94 249,100
Consulting 1,640 105 172,200
Total 575,860
For Quarter:3 is
Billable Hours Billable rate Total
Auditing 2,330 84 195,720
Tax 2,300 94 216,200
Consulting 1,640 105 172,200
Total 584,120
For Quarter:4 is
Billable Hours Billable rate Total
Auditing 2,710 84 227,640
Tax 2,800 94 263,200
Consulting 1,640 105 172,200
Total 663,040
Now the total revenue is
= $575,860 + $584,120 + $663,040
Therefore, = $1,823,020
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You’ve observed the following returns on Yamauchi Corporation’s stock over the past five years: −10 percent, 24 percent, 21 percent, 11 percent, and 8 percent. The average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 4.1 percent. a. What was the average real return on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average nominal risk premium on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
Year Return
1 -0.10
2 0.24
3 0.21
4 0.11
5 0.06
0.540
Average return = 0.540 / 5
Average return =0.108
Average return = 10.80%
a. Average Real Return = [( 1 + Average return) / (1+ inflation rate)] - 1
Average Real Return = [(1+0.1080)/(1+0.081)] - 1
Average Real Return = 0.0747
Average Real Return = 7.47%
b. Average Nominal Risk Premium = Average Return - Risk free rate
Average Nominal Risk Premium = 0.1080 - 0.041
Average Nominal Risk Premium = 0.067
Average Nominal Risk Premium = 6.70%
The average real return on the stock is 7.47% while the average nominal risk premium on the stock is 6.70%.
From the information given, the average return will be calculated thus:
= 0.540 / 5
= 0.108
Average return = 10.80%
Therefore, the average real return will be:
= [( 1 + Average return) / (1+ inflation rate)] - 1
= [(1+0.1080) / (1+0.081)] - 1
= 0.0747
= 7.47%
Also, the average nominal risk premium will be:
= Average Return - Risk free rate
= 0.1080 - 0.041
= 0.067
= 6.70%
Therefore, the average real return on the stock is 7.47% while the average nominal risk premium on the stock is 6.70%.
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Sandhill Company issued $396,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Sandhill Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%. Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(a) The issuance of the bonds.
(b) The payment of interest and related amortization on July 1, 2020.
(c) The accrual of interest and the related amortization on December 31, 2020.
Answer:
01-Jan-20
Dr Cash 403,920
Cr Premium on Bonds Payable $7,920
Cr Bonds Payable $396,000
01-Jul-20
Dr Interest Expense $19,602
Dr Premium on Bonds Payable $198
Cr Cash 19,800
31-Dec-20
Dr Interest Expense $19,602
Dr Premium on Bonds Payable $198
Cr Interest Payable $19,800
Explanation:
A. Preparation of Journal entry for the issuance of the bonds
01-Jan-20
Dr Cash 403,920
($396,000 x 102/100)
Cr Premium on Bonds Payable $7,920
(403,920-396,000)
Cr Bonds Payable $396,000
(To record issuance of bond)
B. Preparation of the Journal entry for the payment of interest and related amortization on July 1, 2020.
01-Jul-20
Dr Interest Expense $19,602
(19,800- 198)
Dr Premium on Bonds Payable $198
($ 7,920 / 40 semi annual payments)
Cr Cash 19,800
($396,000 x 10% x 6/12)
(To record interest payment)
C. Preparation for he accrual of interest and the related amortization on December 31,
31-Dec-20
Dr Interest Expense $19,602
(19,800- 198)
Dr Premium on Bonds Payable $198
($ 7,900 / 40 semi annual payments)
Cr Interest Payable $19,800
($396,000 x 10% x 6/12)
(To record interest accrual)
Jenny is a sales manager who is preparing a performance review about one of her employees. The employee hasn’t been achieving his sales targets for the past several months. Jenny must use an objective___in report. Also, she must aim to be ___ of the employee while conveying the negative feedback.
Question 1 options
•convention
•style
•tone
Question 2 options
•critical
•respectful
•scornful
Answer:
Question 1) Tone
Question 2) Respectful
Explanation:
Jenny must use an objective tone in the report. Also, she must aim to be respectful of the employee while conveying negative feedback. The correct option for question 1 is c and question 2 b.
What is feedback?Feedback can be understood as that which occurs when outputs of a system are routed back as inputs as part of a chain of cause-and-effect that forms a circuit or loop. The system can then be said to feed back into itself.
There are two types of feedback, positive and negative. Positive feedback means if the signal feedback from the output is in phase with the input signal, the feedback is called positive feedback. While negative feedback means if the signal feedback is of opposite polarity or out of phase by 180° with respect to the input signal, the feedback is called negative feedback.
The terms "positive" and "negative" were first applied to feedback prior to WWII.
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On January 4, Year 1, Barber Company purchased 12,500 shares of Convell Company for $150,000 plus a broker's fee of $4,000. Convell Company has a total of 62,500 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.75 per share, and its net income was $117,000 and $112,000 for Year 1 and Year 2, respectively. The January 12, Year 3, entry to record Barber's sale of 7,500 shares of Convell Company stock, which represents 60% of Barber's total investment, for $101,250 cash should be:
Answer:
Debit Cash $101,250; debit loss on sale of Investment $7,380;credit Long -term Investments $108,630
Explanation:
The journal entry is shown below:
Before that the following calculations could be done
Ownership Percentage 20%
($12,500 ÷ $62,500)
Investment cost $154,000
$150,000 + $4,000
Add: Share of Year 1 net income $23,400
$117,000 × 20%
Add: Share of Year 2 net income $22,400
$112,000 × 20%
Less: Dividends for Year 1 -$9,375
12,500 × 0.75
Less: Dividends for Year 2 -$9,375
12,500 × 0.75
Carrying value of Investment $181,050
The Journal entry is shown below:-
Cash Dr, 101,250
Loss on sale of Investment Dr, $7,380
To Long -Term Investments $108,630 (181050 × 60%)
Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation, which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost characteristics. Tuition $ 800 per student Variable costs (tiles, supplies, and so on) 480 per student Fixed costs (advertising, salaries, and so on) 160,000 per year Required: a. What enrollment will enable Alameda Tile to break even? b. How many students will enable Alameda Tile to make an operating profit of $80,000 for the year? c. Assume that the projected enrollment for the year is 800 students for each of the following (considered independently): 1. What will be the operating profit (for 800 students)? 2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 10 percent? Increased by 20 percent? 3. What would be the operating profit if variable costs per student decreased by 10 percent? Increased by 20 percent? 4. Suppose that fixed costs for the year are 10 percent lower than projected, whereas variable costs per student are 10 percent higher than projected. What would be the operating profit for the year?
Answer:
Alameda Tile
a. The enrollment to enable Alameda Tile to break even = 500 students.
b. To make an operating profit of $80,000, number of students
= 750 students
c. With projected enrollment for the year of 800 students:
1. Operating profit = Total Contribution - Fixed Costs
= ($320 * 800) - $160,000
= $96,000
2. a) Operating Profit, if the tuition per student decreased by 10%.
New selling price = $720 which is $800 * (1 - 10%)
Variable cost 480
Contribution $240
Operating profit = Total Contribution - Fixed Costs
= ($240 * 800) - $160,000
= $32,000
2. b) Operating Profit, if the tuition per student increased by 20%.
New selling price = $960 which is $800 * (1 + 20%)
Variable cost 480
Contribution $480
Operating profit = Total Contribution - Fixed Costs
= ($480 * 800) - $160,000
= $224,000
3. a) Operating Profit, if variable costs per student decreased by 10%.
Selling price = $800
Variable cost 432 $480 * (1 - 10%)
Contribution $368
Operating profit = Total Contribution - Fixed Costs
= ($368 * 800) - $160,000
= $134,400
3. b) Operating Profit, if variable costs per student increased by 20%.
Selling price = $800
Variable cost 576 $480 * (1 + 20%)
Contribution $224
Operating profit = Total Contribution - Fixed Costs
= ($224 * 800) - $160,000
= $19,200
4. Operating profit, if fixed costs reduced by 10% and variable cost increased by 10%:
Selling price = $800
Variable cost 528 $480 * (1 + 10%)
Contribution $272
Operating profit = Total Contribution - Fixed Costs
= ($272 * 800) - $144,000 ($160,000 * (1 - 10%)
= $73,600
Explanation:
a) Data and Calculations:
Tentative Price and Cost Characteristics:
Tuition $ 800 per student
Variable costs (tiles, supplies, and so on) 480 per student
Fixed costs (advertising, salaries, and so on) 160,000 per year
Per unit Tentative
Selling price = $800
Variable cost 480
Contribution $320
b) Computation of break-even point:
To break-even with fixed cost of $160,000, sales unit will be equal to:
Fixed cost/Contribution per unit = $160,000/$320 = 500 students
c) Fixed cost + Target Profit /Contribution per unit:
= ($160,000 + $80,000)/$320
= $240,000/320
= 750 students
Time period used to compute indirect cost rates. Capitola Manufacturing produces surfboards. The company uses a normal-costing system and allocates manufacturing overhead on the basis of direct manufacturing labor-hours. Most of the company's production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Pacific Wholesale, due to large fluctuations in price. The owner of Capitola has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year:
Quarter
1 2 3 4
Surfboards manufactured and sold 500 400 100 250
It takes 2 direct manufacturing labor-hours to make each board. The actual direct material cost is $65.00 per board. The actual direct manufacturing labor rate is $20 per hour. The budgeted variable manufacturing overhead rate is $16 per direct manufacturing labor-hour. Budgeted fixed manufacturing overhead costs are $20,000 each quarter.
1. Calculate the total manufacturing cost per unit for the second and third quarters assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter.
2. Calculate the total manufacturing cost per unit for the second and third quarters assuming the company allocates manufacturing overhead costs based on an annual budgeted manufacturing overhead rate.
3. Capitola Manufacturing prices its surfboards at manufacturing cost plus 20%. Why might Pacific Wholesale be seeing large fluctuations in the prices of boards? Which of the methods described in requirements 1 and 2 would you recommend Capitola use? Explain.
Answer:
1) production cost per unit (Q2) = $187
production cost per unit (Q3) = $337
2) production cost per unit (Q2) = $201
production cost per unit (Q3) = $201
3) Capitola should allocate manufacturing costs based on total annual production because if it allocates them on a quarterly basis, the unit costs in the quarters were production is lower will be much higher. E.g. in Q3 only 100 units were produced, therefore production costs are 80% higher than Q2 costs. If costs are allocated on an annual basis, then production costs will be stable and the company will benefit. The company actually lost money when it sold its production during quarters 1 and 2 since overhead costs were not correctly applied.
Explanation:
Quarter
1 2 3 4
Units produced 500 400 100 250
costs per unit:
2 labor hours x $20 = $40direct materials = $65variable overhead = $16total = $121 per unit
fixed overhead = $20,000
1) total production costs second quarter:
materials = 400 x $65 = $26,000
direct labor = 400 x $40 = $16,000
variable overhead = 400 x 2 x $16 = $12,800
fixed overhead = $20,000
total = $74,800
production cost per unit (Q2) = $187
total production costs third quarter:
materials = 100 x $65 = $6,500
direct labor = 100 x $40 = $4,000
variable overhead = 100 x 2 x $16 = $3,200
fixed overhead = $20,000
total = $33,700
production cost per unit (Q3) = $337
2) total production costs second quarter:
materials = 400 x $65 = $26,000
direct labor = 400 x $40 = $16,000
variable overhead = 400 x 2 x $16 = $12,800
fixed overhead = ($80,000 / 1,250) x 400 = $25,600
total = $80,400
production cost per unit (Q2) = $201
total production costs third quarter:
materials = 100 x $65 = $6,500
direct labor = 100 x $40 = $4,000
variable overhead = 100 x 2 x $16 = $3,200
fixed overhead = ($80,000 / 1,250) x 100 = $6,400
total = $20,100
production cost per unit (Q3) = $201
The laws passed by Congress and by state legislatures are called:
Answer:
Rules
Explanation:
I think I'm right
Answer:
Rules
Explanation:
Yes I think this is right
The trial balance of Rollins Inc. included the following accounts as of December 31, 2021:_______.
Debits Credits
Sales revenue 5,900,000
Interest revenue 40,000
Loss on sale of investments 10,000
Loss on debt investments 160,000
Gain on projected benefit obligation 260,000
Cost of goods sold 4,400,000
Selling expense 400,000
Restructuring costs 190,000
Interest expense 20,000
General and administrative expense 300,000
The loss on debt investments represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%.
Required:
Prepare a 2021 separate statement of comprehensive income for Rollins Inc. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Rollins Inc.
ROLLINS INC.
Statement of Comprehensive Income
For the year ended December 31, 2021:
Sales revenue $5,900,000
Cost of goods sold -4,400,000
Gross profit $1,500,000
Selling expense 400,000
General and administrative expense 300,000 -700,000
Operating Income $800,000
Interest revenue 40,000
Interest expense -20,000 20,000
Income before taxes $820,000
Income tax (25%) -205,000
Income after tax $615,000
Other comprehensive income:
Gain on projected benefit obligation 260,000
Restructuring costs -190,000
Loss on sale of investments -10,000
Loss on debt investments -160,000 -100,000
Other comprehensive income $515,000
Explanation:
Data and Calculations:
Trial Balance as of December 31, 2021:
Debits Credits
Sales revenue 5,900,000
Cost of goods sold 4,400,000
Interest revenue 40,000
Interest expense 20,000
Loss on sale of investments 10,000
Loss on debt investments 160,000
Gain on projected benefit obligation 260,000
Selling expense 400,000
Restructuring costs 190,000
General and administrative expense 300,000
Which applicants would be best qualified for the jobs based on educational level?
O Applicant 2 is qualified to be a Radiologist, applicant 1 is qualified to be an Orderly, and applicants 2, 3, and 4
are qualified to be Biomedical Engineers.
O Applicant 3 is qualified to be a Radiologist, applicant 2 is qualified to be an Orderly and applicants 1 and 4 are
qualified to be Biomedical Engineers
O Applicant 1 is qualified to be a Radiologist, applicant 4 is qualified to be an Orderly, and applicants 2 and 3 are
qualified to be Biomedical Engineers.
O Applicant 4 is qualified to be a Radiologist, applicant 3 is qualified to be an Orderly, and applicants 1, 2, and
are qualified to be Biomedical Engineers
Answer:
Applicant 4 is qualified to be a Radiologist, applicant 3 is qualified to be an Orderly, and applicants 1, 2, and 4 are qualified to be Biomedical Engineers.
Explanation:
Applicant 4 is qualified to be a Radiologist, applicant 3 is qualified to be an Orderly, and applicants 1, 2, who are qualified to be Biomedical Engineers would be best qualified for the jobs based on educational level.
What is a job?Body of reporting, particularly a particular task carried out as part of one's daily duties or for a set fee. As a means of generating income and gaining access to a variety of crucial and – anti-goods, systems, and exercises, work plays a significant role in the framing of a patient's identity development.
In this, there will be an application that will be some changes with the person who is qualified. This can be with respect to the carriers that were like radiologists, Biomedical Engineers. As the person will be the one who will be educated will get the job.
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If the rate of growth of output is 8% and the rate of growth of population is 2%, what is the rate of growth of output per capita
Answer and Explanation:
Population and output are related in determining output per capita(per head). Total output divided by total population is equal to output per capita. Output per capita growth rate is the difference between population growth rate and output growth rate.
If output growth rate= 8%
and population growth rate = 2%
Then per capita output growth rate= output growth rate - population growth rate
Therefore per capita output growth rate = 8% - 2% =6%
Per capita output growth rate = 8%
Exacto Company reported the following net income and dividends for the years indicated:
Year Net Income Dividends
20X5 $35,000 $12,000
20X6 45,000 20,000
20X7 30,000 14,000
True Corporation acquired 75 percent of Exacto’s common stock on January 1, 20X5. On that date, the fair value of Exacto’s net assets was equal to the book value. True uses the equity method in accounting for its ownership in Exacto and reported a balance of $259,800 in its investment account on December 31, 20X7.
Required
a. What amount did True pay when it purchased Exacto’s shares?
b. What was the fair value of Exacto’s net assets on January 1, 20X5?
c. What amount was assigned to the NCI shareholders on January 1, 20X5?
d. What amount will be assigned to the NCI shareholders in the consolidated balance sheet pre-pared at December 31, 20x7?
Answer:
A. $211,800
B. $282,400
C. $70,600
D. $ 86,600
Explanation :
A. Calculation for the amount that True pay when it purchased
Balance in investment account, December 31, 20x7$259,800
Cumulative earnings since acquisition$110,000
(35,000+45,000+30,000)
Less Cumulative dividends since acquisition(46,000)
(12,000+20,000+14,000)
Total $64,000
(110,000-46,000)
Proportion of stock held by True Corporationx 0.75
Total amount debited to Investment account(48,000)
(0.75*64,000)
Purchase amount on January 1, 20X5 $211,800
(259,000-48,000)
B. Calculation for fair value of Exacto’s net assets on January 1, 20X5
True Corporation’s Purchase amount $211,800
÷True Corp.’s percentage 0.75
Fair Value of Exacto Company’s Net Assets $282,400
C. Calculation for the amount that was assigned to the NCI shareholders on January 1, 20X5
Fair Value of Exacto Company’s Net Asset$282,400
× Exacto Company’s percentage 0.25
(100%-75%)
NCI’s portion $70,600
D. Calculation for the amount that will be assigned to the NCI shareholders
True Corp’s investment balance$259,800
÷True Corp’s percentage0.75
=Fair Value of Exacto’s Net Assets 20X7 $346,400
×Exacto Company’s percentage 0.25
(100%-75%)
NCI’s Portion, December 31, 20X7 $ 86,600
($346,400×0.25)
