Answer:
$25,550
Explanation:
For computing the net investment first we have to find out the loss or gain on sale of old equipment which is shown below:
Sale value = $61,200
Less: Book value of old equipment = $60,200
Gain = $1000
Now
Tax on gain is
= $1,000 × 25%
= $250
So, the net gain is
= $1,000 - $250
= $750
Now the net investment is
= Cost of new equipment - sale value pre tax + net gain
= $86,000 - $61,200 + $750
= $25,550
Answer:
Net Investment = $25,550
Explanation:
Given:
Sale value (old equipment) = $61,200
Book value of old equipment = $60,200
New equipment cost = $86,000
Effective tax rate = 25%
Computation
Gain on sale = $61,200 - $60,200
Gain on sale = $1,000
Amount of tax on gain = $1000 × 25%
Amount of tax on gain = $250
Net Gain = Gain on sale - Amount of tax on gain
Net Gain = $750
Net Investment = Cost of new equipment - (Sale value - Net Gain)
Net Investment = $86,200 - (61,200 - 750)
Net Investment = $25,550
Suppose Nike's managers were considering expanding into producing sports beverages. Why might the company decide to do this under the Nike brand name? The cost of producing sports beverages along with its current products under the Nike brand name is less than the cost of producing sports beverages under a new brand name plus the cost of producing Nike's current products under the Nike brand name. The cost of producing sports beverages along with its current products under the Nike brand name is greater than the cost of producing sports beverages separately under a new brand name plus the cost of producing Nike's current products under the Nike brand name.
Answer:
Te correct answer is the first option: The cost of producing sports beverages along with its current products under the Nike brand name is less than the cost of producing sports beverages under a new brand name plus the cost of producing Nike's current products under the Nike brand name
Explanation:
To begin with, the fact that the managers are looking forward to expand the business and to aggregate sports beverages indicates that the company is doing good in the sales and therefore they have margin to invest in a plan like that. Secondly, the fact that they do it under Nike's name will cost them less than doing it otherwise due the fact that they will not have to pay for a new name and all the registrations and patents that the strategy involves. They will only need to register the new product and even more they would have all the marketing campaign focus on the same audience and will find strength in using the brand and name of Nike for that, in terms of publicity.
Assume that HotLap, Inc., a manufacturer of laptop computers, is considering a merger with SassyChips, a leading producer of computer chips. HotLap believes such a merger would benefit their business by giving them a guaranteed steady supply of the chips they need to make their laptops, and more control over the way those chips are designed. If this merger occurs, it would be an example of:____________.
1. contract manufacturing.
2. a vertical merger.
3. a conglomerate merger.
4. a franchise arrangement.
5. a horizontal merger.
6. a leveraged buyout.
Answer:
Option B
Explanation:
In simple words, vertical merger refers to the joining of the two separate entities that provide value to different level of supply chains. Such mergers are implemented by the entities to take advantage of realized synergies.
These mergers provide many benefits such as reduced cost or steady supply but the acquiring entity gets the burden to operate a separate entity and manage it.
Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a seven-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2021 $ 17,233,953 06/30/2021 $ 950,000 $ 1,034,037 $ 84,037 17,317,990 12/31/2021 950,000 1,039,079 89,079 17,407,069 06/30/2022 950,000 1,044,424 94,424 17,501,493 12/31/2022 950,000 1,050,090 100,090 17,601,583 What is the market annual rate of interest on the bonds
Answer: 12%
Explanation:
The semi annual market rate of interest on the bonds will be the interest expense divided by the carrying value i.e issue price of bond which is then multiplied by 100%. This will be mathematically expressed as:
= 1,034,037/17,233,953 × 100
= 0.06 × 100
= 6%
This implies that the semi annual market interest rate is 6%.
Since we are told to calculate the market annual rate of interest on the bonds, we multiply the value of 6% by 2 since 12 months make a year and we used 6 months for the calculation above which is semi annual. This will be:
= 6% × 2
= 12%
Therefore, the market annual rate of interest on the bonds is 12%
An investor wishes to buy a new issue of U.S. Government agency bonds. You recommend that the customer purchase Federal Home Loan Bank bonds with a 20 year maturity. An investor who purchases the new issue of Federal Home Loan Bank bonds can expect to pay:
Answer:
The answer is Par
Explanation:
An investor who purchases the new issue can expect to pay Part.
The agency appoints a selling group that sells new issues of agency securities.This selling group is usually made of large banks and broker-dealers. They sell the issue at par to the public. From what was made from the sale, the agency then pays the selling group a selling concession. In contrast, direct U.S. Government obligations are sold through auction
Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 minusone half q where p is price in $ per hour and q is hours per month. The firm faces a constant marginal cost of $1. If the firm will charge a monthly access fee plus a per hour rate, the monthly access fee will equal A. $5. B. $16. C. $1. D. $8.
Answer: B) $16
Explanation:
First lets take down the data given to us;
access from a certain leading provider can be represented as p = 5 minusone half q i.e 5 - 0.5q
Using the concept of two-part terrific which is a monopolistic market system, it is type of price discrimination where the price of goods and services are of two section namely; a lump-sum fee (expensive) as well as a per-unit charge .
Entry fees are set to be equal to the consumer surplus in the competitive equilibrium.
So we calculate our price and quantity in the competitive equilibrium first, marginal cost is equal to price
5 - 0.5q = 1
4 / 0.5 = q
q = 8
Now the intercept of the demand curve at the vertical axis is 5,
so the consumer surplus in the competitive equilibrium is:
M = (5 - 1) * 8 / 2
M = 4 * 4
M = 16
the monthly access fee will be equal to $16.
The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 300 comma 000 units. If the production budget calls for Saphire to produce 1 comma 200 comma 000 1-gallon containers during 2018, what is the beginning inventory of 1-gallon containers on January 1, 2018?
Answer:
Hi, the information you have provided is missing information regarding the Budgeted Sales of 1-gallon containers During the year.
However, the following points are provided to help solve the problem.
The Beginning inventory of 1-gallon containers on January 1, 2018 can be determined using the missing figure approach.
Production Budget for the year end December 31, 2018
1-gallon containers
Budgeted Production 1,200,000
Less Budgeted Sales (amount missing) XXX
Less Budgeted Closing Stock (300,000)
Budgeted opening Stock XXX
The current sections of Flint Corporation’s balance sheets at December 31, 2016 and 2017, are presented here. Flint Corporation’s net income for 2017 was $156,213. Depreciation expense was $27,567.
2017
2016
Current assets
Cash
$107,205
$ 101,079
Accounts receivable
81,680
90,869
Inventory
171,528
175,612
Prepaid expenses
27,567
22,462
Total current assets
$387,980
$390,022
Current liabilities
Accrued expenses payable
$ 15,315
$ 5,105
Accounts payable
86,785
93,932
Total current liabilities
$102,100
$ 99,037
Prepare the net cash provided (used) by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
209305
Explanation:
Statement of cash flow
Cash from operating activities
Profit after taxation 156213
Adjustments :
Depreciation 27567
Cash flow from operating activities before working capital changes 183780
Working Capital changes :
Change in trade receivables 9189
Change in inventories 4084
Change in prepaid expenses (5105)
Change in trade payables 7147
Change in accrued expenses 10210
Cash generated from operations 209305
If your employer offers a retirement plan, don’t participate in it. Don’t bother to set target dates for achieving your financial goals. Pay credit card balances in full each month. Start saving early in life and save throughout your life.
Answer: Please refer to Explanation
Explanation:
If your employer offers a retirement plan, don’t participate in it. Yes.
Having a retirement plan with your employer especially one in which you are a 100% vested is a drain on your income. It might have benefits in future when you retire but if you want to engage in financial planning, you need to have access to every penny and that includes the money going to the retirement plan.
Don’t bother to set target dates for achieving your financial goals. No
Setting a target date for various amounts in your financial goals enables you to work towards them with more determination. It is important to set target dates.
Pay credit card balances in full each month. Yes
Paying your credit card balance in full every month helps you avoid interest accruing as well as increasing your credit score. It is therefore very important to pay off the balance in full every month which will be easier as long as you charge things to it that you can afford.
Start saving early in life and save throughout your life. Yes.
The more you save the more you have to invest. This is why you should start saving early if you want to engage in financial planning. You need to formulate the determination to save every time. And don't just save for saving's case, save to invest.
When Sandra and Charles Givens were divorced, the court ordered a division of property and awarded Sandra $65,000. The award was a judgment against Charles, who failed to pay it. Sandra asked the court to find Charles in contempt. Their lawyers had a conference with the judge, and they agreed that Charles would pay $2500 immediately and $300 per month until the judgment was paid in full. Charles alleged that the new payment schedule was a binding contract, because Sandra had accepted his offer of payments. Was it a contract
Answer:
Yes, it is a binding contract.
Explanation:
A contract is a legal binding agreement between two or more parties at the court of law. The agreement could be in terms of money, services, right or duties between the parties involved.
Since a consent has been reached between the two parties before the judge, Charles would pay the sum in the stipulated manner. The acceptance of the offer of payment by Sandra made it a binding contract for Charles, so he is bound by this service until he pays the full amount to Sandra.
A mutual fund had NAV per share of $19.00 on January 1, 2016. On December 31 of the same year, the fund's NAV was $19.14. Income distributions were $0.57, and the fund had capital gain distributions of $1.12. Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year
Answer:
9.63%
Explanation:
Calculation of Mutual Fund rate of return that the investor receive on the fund last year
Using this formula
Rate=(Fund's NAV -NAV per share +Income distributions+ Capital gain distributions )
Let plug in the formula
Where:
Fund's NAV =$19.14
NAV per share=$19.00
Income distributions=.57
Capital gain distributions =1.12
Hence
Rate =($19.14 - 19.00 + .57 + 1.12) / $19.00
=1.83/$19.00
=0.0963×100
Rate = 9.63%
Therefore without considering taxes and transactions costs, the rate of return that the investor receive on the fund last year will be 9.63%
Jacquie Inc. reports the following annual cost data for its single product.
Normal production and sales level 70,000 units
Sales price $ 57.00 per unit
Direct materials $ 10.00 per unit
Direct labor $ 7.50 per unit
Variable overhead $ 12.00 per unit
Fixed overhead $ 1,050,000 in total
Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal place.)
Production volume
Cost of goods sold: 72000 units 104000 units
Cost of goods sold per unit
Number of units sold
Total cost of goods sold
Jacquie Inc.
Income statement through gross margin
Sales volume
72000 units 72000 units
If Jacquie increases its production to 104000 units, while sales remain at the current 72000 unit level, by how much would the company?
Answer:
Cost of goods sold:
72,000 units = $3,174,000104,000 units = $4,118,000Cost of goods sold per unit:
72,000 units = $44.08104,000 units = $39.60A comparative income statement showing the different production and sales levels:
70,000 units 72,000 units 104,000 units
Total sales $3,990,000 $4,104,000 $5,928,000
COGS ($3,115,000) ($3,174,000) ($4,118,000)
Gross profit $875,000 $930,000 $1,810,000
If Jacquie increases its production to 104000 units, while sales remain at the current 72000 unit level, by how much would the company?
Total sales $4,104,000
COGS ($2,851,200)
Gross profit $1,253,000
If the production level is 104,000 units, but only 72,000 are sold, net profits will increase by $323,000 (= $1,253,000 - $930,000). The remaining 32,000 units will be reported as ending inventory of finished goods.
Explanation:
normal production 72,000 units 104,000 units
direct materials $700,000 $720,000 $1,040,000
direct labor $525,000 $540,000 $780,000
variable overhead $840,000 $864,000 $1,248,000
fixed overhead $1,050,000 $1,050,000 $1,050,000
total $3,115,000 $3,174,000 $4,118,000
cost per unit $44.50 $44.08 $39.60
You have an investment that in today's dollars returns 12% of your investment in year 1, 18% in year 2, 11% in year 3, and the remainder in year 4. Rounded to two places, what is the Duration of this investment
Answer:
The duration of this investment will be 14,005 years
Explanation:
Duration of investment= Sum of ( Percentage* TIme)
=( 1 x 12%) + (2 x 18%) + (3 x 11%) + (4 x 59%)
= 12+36+33+13,924
=14,005 years
Due to the adoption of a just in time assembly line system, NWC is expected to decrease. Inventory is expected to decrease from $254600 to $143072 while accounts payable will also decrease by $26648. What is the cash flow impact for the change in net working capital to be included in the initial investment
Answer:
$84,880
Explanation:
Since there is a decrease in inventory from $254,600 to $143,072 i.e $111,528 and the account payable is also decreased by $26,648
So, there is an increase in cash flow due to the change in net working capital of
= Decrease in inventory - decrease in account payable
= $111,528 - $26,648
= $84,880
Hence, the cash flow impact is of $84,880 i.e to be included in the initial investment
One advantage of the direct organizational plan is that it:________.
A. Results in more formal messages.
B. Positions the major news first.
C. Presents key topic sentences before subsequent ideas.
D. Arranges supporting details in order of priority.
E. Gives reasons up front to prepare the reader for negative news.
Answer:
B
Explanation:
One advantage of the direct organizational plan is that it positions the major news first.
The major news receives the most attention because of it importance,hence it is given proper analysis which in turn brings attention.
When the direct approachis used, the main idea (such as a recommendation, conclusion, or request) comes in as the top on the priority list of the document, followed by the evidence. This is a deductive argument. This approach is used when your audience will be neutral or positive about your message.
Phionia Phelps has developed a gourmet cat food. Not only is this food eagerly eaten by the most finicky felines, but it is specially formulated to prevent the many health problems of aging cats. Phionia has been making the food on her kitchen range and selling it at $250 per case only to close acquaintances who are also cat lovers. One of her wealthy acquaintances has now offered to invest in her business if Phionia will begin selling the product through her website. However, the investor wants Phionia to produce a budget for the first six months of operation. Based on her experience to date, Phionia predicts the following sales in cases:
Each case of Finicky Feline Gourmet Cat Dinner requires 5 pounds of prime lamb meat, 10 pounds of short grain Chinese rice, 2 pounds of wild caught Alaskan salmon, and 1 pound of secret vitamins and supplements. Phionia plans to maintain end-of-month inventories equal to 10 percent of the next month's projected sales, to meet expected sales growth. All the ingredients inventories are to be maintained at 5 percent of the production needs for the next month, but not to exceed 1,000 pounds of any one ingredient. January will begin with all inventories at the projected levels. Phionia has the following price quotes good for the following year:
The production process requires direct labor at two skill levels: (1) ingredient preparation, $18 per hour, and (2) cooking and canning, $24 per hour. Two workers are willing to work part days if there is not enough demand for them to work full time. lt takes one hour to process one batch. Because of preparation and cleanup time, only six batches can be produced per day. Each batch produces enough food to fill 100 cases. Manufacturing overhead is $6,000 fixed per month plus $15 per case.
Item $ per pound
Lamb 15
Rice 1,20
Saimon 24
Viamlns 45
1. Prepare the following budgets for the period. January through June:________.
a. Sales budget in dollars.
b. Production budget in units.
c. Direct materials purchases budget in pounds.
d. Direct materials purchases budget in dollars.
e. Direct manufacturing labor budget in dollars.
2. Comment on the viability of this business and the advisability of the investor making a $50,000 investment to get it started.
Answer:
Explanation:
a.
Sales budget = $ 250 per case * 100 cases per batch * 6 batches per day * 20 days a month * 6 months
= $ 18,000,000
b. Production budget in units = 100 cases per batch * 6 batches per day * 20 days a month * 6 months
= 72,000 cases
Production budget including 10 percent inventories
= 72000 + 100*6*20*10%
= 73200 cases
c. Direct materials purchases budget in pounds including 5% inventories
Lamb = 5 pounds per case * (73200 cases + 100*6*20*5% cases )
= 369,000 pounds
Rice Lamb = 10 pounds per case * (73200 cases + 100*6*20*5% cases )
= 738,000 pounds
Salmon = 2 pounds per case * (73200 cases + 100*6*20*5% cases )
= 147,600 pounds
Vitamins = 1 pound per case * (73200 cases + 100*6*20*5% cases )
= 73,800 pounds
d. Direct materials purchases budget in dollars = 369000*15 + 738000*1.2 + 147600*24 + 73800*45
= $ 1,328,400
e. Manufacturing labor budget in dollars = 1 hours per batch * 6 batches per day * 20 days per month * 6 months * ($ 18 per hour for ingredient preparation + $ 24 per hour for cooking and canning ) * 2 workers
= $ 60,480
2. The business requires an investment of $ 1,328,400 + 60,480
= $ 1,388,880 over six months.
This translates to monthly investment of $ 231,480
Therefore $ 50,000 investment is too small to begin with.
The trial balance of Rachel Company at the end of its fiscal year, August 31, 2017, includes these accounts: Inventory $29,200; Purchases $144,000; Sales Revenue $190,000; Freight-In $8,000; Sales Returns and Allowances $3,000; Freight-Out $1,000; and Purchases Returns and Allowances $5,000. The ending inventory is $25,000. Prepare a cost of goods sold section for the year ending August 31.
Answer:
$151,200
Explanation:
The cost of goods sold is the beginning inventory plus purchases plus freight-in, minus purchases returns and allowances minus ending inventory
Cost of goods sold extract of income statement:
Beginning inventory $29,200
Purchases $144,000
Freight-in $8,000
Purchases returns and allowances ($5,000)
Net purchases $147,000
cost of goods available for sale $176,200
ending inventory ($25,000)
cost of goods sold $151,200
The cost of goods sold is $151,200,which would be deducted from net sales in order to arrive at gross profit
In January 2020, the management of Sheridan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of Muninger common stock for $27,500. Mar. 1 Purchased 700 shares of Tatman common stock for $17,500. Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.50 per share on the Muninger common stock. Aug. 1 Sold 167 shares of Muninger common stock at $65 per share. Sept. 1 Received a $1 per share cash dividend on the Tatman common stock. Oct. 1 Received the semiannual interest on the Yoakem bonds. Oct. 1 Sold the Yoakem bonds for $41,000. At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.Prepare the adjusting entry at December 31, 2020, to report the investment securities at fair value. All securities are considered to be trading securities. (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.)
Answer:
December 31, 2020, fair value adjustment
Dr Investment in Muninger stocks 333
Cr Unrealized gain - Investment in Muninger stocks 333
December 31, 2020, fair value adjustment
Dr Unrealized loss - Investment in Tatman stocks 700
Cr Investment in Tatman stocks 700
Explanation:
Feb. 1 Purchased 500 shares of Muninger common stock for $27,500.
Dr Investment in Muninger stocks 27,500
Cr Cash 27,500
Mar. 1 Purchased 700 shares of Tatman common stock for $17,500.
Dr Investment in Tatman stocks 17,500
Cr Cash 17,500
Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1.
Dr Investment in Yoakem bonds 42,000
Cr Cash 42,000
July 1 Received a cash dividend of $0.50 per share on the Muninger common stock.
Dr Cash 250
Cr Dividend revenue 250
Aug. 1 Sold 167 shares of Muninger common stock at $65 per share.
Dr Cash 10,855
Cr Investment in Muninger stocks 9,185
Cr Gain on sale 1,670
Sept. 1 Received a $1 per share cash dividend on the Tatman common stock.
Dr Cash 700
Cr Dividend revenue 700
Oct. 1 Received the semiannual interest on the Yoakem bonds.
Dr Cash 1,260
Cr Interest revenue 1,260
Oct. 1 Sold the Yoakem bonds for $41,000.
Dr Cash 41,000
Dr Loss on sale 1,000
Cr Investment in Yoakem bonds 42,000
At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.
Answer:
Sheridan Company
Adjusting Entries for Trading Investments at Fair Value:
December 31, 2020:
Debit Investment in Muninger $333
Credit Gain on Investment $333
To record the $1 per share gain on investment (500 - 167 shares).
Debit Loss on Investment $700
Credit Investment in Tatma $700
To record the $1 per share loss on investment (700 shares).
Explanation:
Investments held for trading are short-term investments in debt and stock securities. They are accounted for at fair value.
This implies that at the end of each reporting period, the difference between the book value of the investment and the fair value is adjusted either as gain or loss on investment. This adjusting entry increases or reduces the book value of the investment to its fair value. The gain or loss remains an unrealized gain or loss until the investment is sold.
A company currently pays a dividend of $3.4 per share (D0 = $3.4). It is estimated that the company's dividend will grow at a rate of 17% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.3, the risk-free rate is 6.5%, and the market risk premium is 1.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.
Answer:
Current price of stock =$128.06
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
The model is given as
P = D× g/(r-g)
P- price, D- dividend payable in year 1, r -cost of equity, g - growth rate in dividend
Cost of equity
The cost of equity can be calculated using the Capital Asset Model (CAPM).
Ke= Rf +β(Rm-Rf)
Ke =? , Rf- 6.5%, (Rm-Rf)- 1.5, β- 1.3
Ke=6.5% + 1.3× (1.5)= 8.45%
Stock price
PV of dividend in year 1 = 3.4× 1.17× 1.0845^(-1)=3.668
PV of dividend in year 2 = 3.4× 1.17^2× 1.0845^(-2) = 3.9572
PV of dividend in year 3
This will be done in two(2) steps:
Step 1- PV in year 2 terms
3.4× 1.17^2× 1.05/(0.0845- 0.05)= 141.651
Step 2- PV in year 0
141.6513913× 1.0845^(-2)= 120.4375
Current piece of stock = 3.668 + 3.957 + 120.4375 = 128.062
Current price of stock =$128.062
Expenses include all of the following except: Multiple Choice making a payment on account. using supplies. paying for electricity used during the current period. paying wages for production workers for work performed during the current period.
Answer:
using supplies
Explanation:
An expense can be described as cost incurred by a company in a bid to earn revenue.
When supplies are used no explicit cost is incurred in the process so it doesn't qualify as an expense.
I hope my answer helps you
Expenses include making a payment on account, using supplies, and paying wages for production workers for work performed during the current period.
What is not considered an expense?However, paying for electricity used during the current period is not considered an expense. Instead, it is categorized as an operating cost or utility cost.
Expenses typically refer to the costs incurred by a business in its day-to-day operations, such as purchasing inventory, paying wages, or using supplies.
Read more about Expenses here:
https://brainly.com/question/29844123
#SPJ6
Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates $120,800 in cash receipts and $134,500 in cash payments during August. Southland Company wants to maintain a minimum cash balance of $10,000. To maintain the minimum cash balance of $10,000, the company must borrow:
Answer:
The Southland Company must borrow the amount of $6,700
Explanation:
To determine the amount the company must borrow, analysis of its net cash balance is paramount. Then, the Net cash balance will be deducted from the minimum cash balance of $10,000 to know the amount to be borrowed
Particulars Amount
Opening Cash Balance $17,000
Cash Receipts Expected $120,800
Cash Payment $134,500
Net Cash Balance $3,300
Minimum cash balance $10,000
Net Cash Balance $3,300
Amount to be borrowed $6,700
The Southland Company must borrow the amount of $6,700
Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,900 uncollectible account of its customer, A. Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is:
Answer:
Allowance for Doubtful Accounts $2,900
To Accounts Receivable $2,900
(Being the written off amount is recorded)
Explanation:
The journal entry to record the write off of the account using allowance method is shown below:
On May 3
Allowance for Doubtful Accounts $2,900
To Accounts Receivable $2,900
(Being the written off amount is recorded)
For recording this we debited the allowance for doubtful accounts as it reduced the allowance and credited the account receivable as it decreased the assets so that the proper recording of the given transaction could be done
Homeowners enjoy many benefits, including a federal tax deduction for state and local property taxes paid. Fishers, Indiana, was voted one of the top 100 best places to live in 2017 by Money magazine. With population of 86,357, a median home price of $236,167, and estimated property taxes at 10.6 mills, how much does the average homeowner pay in property taxes?
Answer:
The average homeowner pay $2,503.37 in property taxes
Explanation:
Population = 86,357
Median home price = $236,167
Estimated property taxes = 10.6 mills
Property Tax 1 Mills equals to 1/1000 Units . That Means Property tax Need to pay $1 For $1000 Assets able value .
Average homeowner pay in property taxes = Home Price × (Mills ÷ 1000)
= $236,167 × (10.6 ÷ 1000)
= $236,167 × 0.0106
=$2,503.37
Many large, packaged goods marketers like Procter & Gamble, Kraft, and Pillsbury have used the product manager (or brand manager) system of marketing organization and implementation. Which of the following is the key advantage of this system?
A. Product managers have relatively little authority
B. Product managers are short-term in their orientation
C. Product managers have direct responsibility for research and development of new products
D. Product managers can assume profit-and-loss responsibility for the performance of the product line
E. Product managers have line responsibility over sales managers
Answer:
C. Product managers have direct responsibility for research and development of new products
Explanation:
The position of Product manager is an all-encompassing role. He is tasked with the job of ensuring the members of the team are up and doing; he ensures each member of the team supplies considerable input to the end that the team effort can be evidently seen. The Product manager is also saddled with the responsibility of ensuring swift communication amidst all parties; he splits complex tasks into easily understandable processes. He sets the target and goal for each team member; he is the one who accesses and optimizes team members' performances.
Despite and inspite of these varying responsibilities, the biggest and most vital task of the Product manager is to research products, assess the market (customers), create services/products which are innovative and solve critical problems thereby, adding value to the customer base. The more information he has about the market and need of the customers, the better he is able to tailor the products and services rendered to address those needs. Overall, the Product manager due to his extensive involvement and oversight, he ensures that the chances of product failure is significantly reduced.
In the light of the explanation above, Option C. (Product managers have direct responsibility for research and development of new products) is the correct answer.
Ratio proficiency McDougal Printing, Inc., had sales totaling $ 41 comma 000 comma 000 in fiscal year 2019. Some ratios for the company are listed below. Use this information to determine the dollar values of various income statement and balance sheet accounts as requested. Assume a 365-day year. Calculate values for the following: a. Gross profits b. Cost of goods sold c. Operating profits d. Operating expenses e. Earnings available for common stockholders f. Total assets g. Total common stock equity h. Accounts receivable
Answer:
a. Gross profits
= total sales x gross profit margin = $41,000,000 x 76% = $31,160,000
b. Cost of goods sold
= total sales - gross profit = $41,000,000 - $31,160,000 = $9,840,000
c. Operating profits
= total sales x operating profit margin = $41,000,000 x 31% = $12,710,000
d. Operating expenses
= total sales - operating profit = $41,000,000 - $12,710,000 = $28,290,000
e. Earnings available for common stockholders
= net profits = total sales x net profit margin = $41,000,000 x 9% = $3,690,000
f. Total assets
asset turnover = revenue / total assets
total assets = revenue / 2.1 = $41,000,000 / 2.1 = $19,523,810
g. Total common stock equity
ROE = net income / equity
equity = net income / ROE = $3,690,000 / 23% = $16,043,478
h. Accounts receivable
average collection period = 365 / accounts receivable turnover
54.5 = 365 / accounts receivable turnover
accounts receivable turnover = 365 / 54.5 = 6.697248
accounts receivable turnover = sales / accounts receivable
accounts receivable = sales / accounts receivable turnover = $41,000,000 / 6.697248 = $6,121,918
Explanation:
McDougal Printing, Inc.
Year Ended December 31, 2019
Sales $41,000,000
Gross profit margin 76% =
Operating profit margin 31%
Net profit margin 9%
Return on total assets 18.9%
Return on common equity 23%
Total asset turnover 2.1
Average collection period 54.5 days
In union terms, a direct strike occurs:
a. when an organized body of workers withholds its labor to force the employer to comply with its demands.
b. when union members and their supporters refuse to buy products from a company being struck.
c. when workers who have no particular grievance of their own and who may or may not have the same employer decide to strike in support of others.
d. when people refuse to patronize companies that handle products of struck companies.
Answer:
. when an organized body of workers withholds its labor to force the employer to comply with its demands.
Explanation:
You have learned from your training materials that the integration-responsiveness framework juxtaposes the opposing pressures for cost reductions and local responsiveness to derive four different strategies to gain and sustain competitive advantage when competing globally. Which of these four strategies has HP adopted?
Answer:
aswer is
Explanation:
because is Hp is globally science
On December 31, a Company held the following short-term available-for-sale securities. The Company had no short-term investments prior to the current period. Prepare the December 31 year-end adjusting entry to record the fair value adjustment for these debt securities.
Answer:
1a. Unrealized amount 850
1b.Dr Unrealized holding loss-AFS 850
Cr Fair value adjustment 850
Explanation:
1a. Computation for fair value adjustment
Available for sale securities Cost -Fair value =Unrealized amount
Nintendo Co notes 44450-48900=4450
Atlantic Bonds 49000-47000=-2000
Kelogg Co notes25000-23200=-1800
Mcdonals Corp bonds46300-44800= -1500
Total 164750-163900= -850
1b. The Adjusting Journal entry
Dr Unrealized holding loss-AFS 850
Cr Fair value adjustment 850
(To record adjusting entry)
Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $80,000; May, $110,000; and June, $120,000. Payments are made as follows: 70 % in the month of purchase and 30 % in the month after purchase. The March 31 balance of accounts payable is $22,000 Prepare a schedule of budgeted cash payments for April, May, and June.
April May June
Current month purchases 70%
Ending accounts payable 30 %
Total purchases
ZISK CO.
Schedule of Cash Payments For April, May, and June
Аpril May June
Cash payments for
Current month purchases
Prior month purchases
Budgeted cash payments for materials
Answer:
Results are below.
Explanation:
Giving the following information:
Budgeted purchase:
April= $80,000
May= $110,000
June= $120,000.
Payments are made as follows:
70% in the month of purchase and 30% in the month after purchase.
The March 31 balance of accounts payable is $22,000
April:
Purchase from April= 80,000*0.7= 56,000
From previous month= 22,000
Total cash= 78,000
May:
Purchase from May= 110,000*0.7= 77,000
From previous month= 80,000*0.3= 24,000
Total cash= 101,000
June:
Purchase from June= 120,000*0.7= 84,000
From previous month= 110,000*0.3= 33,000
Total cash= 117,000
The following costs are budgeted for Harlow Corporation for next year: The costs above are based on a level of activity of 20,000 units. Assuming that this activity is within the relevant range, what would total cost per unit be for Harlow if the level of activity was only 18,000 units?
Answer:
$48.50
Explanation:
Harlow Corporation
First step is to calculate for Variable cost per unit:
Variable cost per unit =
$270,000 ÷ 20,000 units
= $13.50 per unit
Second step is to calculate for the cost function
Cost function :
Y = $630,000 + $13.50X
Y= $630,000 + $13.50(18,000)
Y=$630,000+$243,000
Y = $873,000
Therefore:
Total cost / number of units = total cost per unit$
Total cost =$873,000
Number of units= 18,000
$873,000 ÷ 18,000
= $48.50
Therefore the total cost per unit is $48.50
Your coin collection contains 59,1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2053, assuming they appreciate at an annual rate of 6.6 percent?
Answer:
The collection is worth $37,525.78.
Explanation:
Giving the following information:
Your coin collection contains 59 1952 silver dollars.
Interest rate= 6.6%
Number of years= 2053 - 1952= 101 years
To calculate the value of the collection today, we need to use the following formula:
FV= PV*(1+i)^n
FV= 59*(1.066^101)
FV= $37,525.78
