Answer:
C) if the court finds that Shawn has substantially performed, he will be able to recover the contract price less any damages caused by his failure to perform as promised.
Explanation:
From the question Harry signed a contract with Shawn to build a house. Harry made some specification to build the house. But Shawn did not follow the specifications now Harry doesn't want to pay him the contract amount.
Under doctrine of specific performance, Harry can pay less money than the contract price. Because Shawn has performed substantially, he is not entitled to receive the contract price as agreed.
On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $480 million. The bonds mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30.
Required:
Determine the price of the bonds on September 30, 2018.
Answer:
The price of the bonds today is $397.64 million (rounded off to two decimal places)
Explanation:
The price of a bond is calculated as the present value of the face value of the bond discounted at the market interest rate plus the present value of the annuity of interest payments related to the bond discounted at the market interest rate or the Yield to Maturity (YTM).
The formula for the price of the bond is attached hereby.
Semi annual coupon rate = 8%/2 = 4%
Semi annual market interest rate = 10% / 2 = 5%
Number of semi annual interest periods = 20 * 2 = 40 periods
The interest paid by the bond semi annually is = 480 * 0.04 = $19.2 million
Price of the bond = 19.2 * [(1 - (1+0.05)^-40) / 0.05] + 480 / (1+0.05)^40
Price of the bond = $397.6363855 million rounded off to $397.64 million
Rank the following instruments in terms of credit risk. In your rankings, use 1 for the greatest credit risk and 4 for the smallest credit risk. Assume a 10 year Treasury trades with a YTM of 5%.a. A Ba1 corporate bond ______b. A ten-year BBB- corporate bond with a YTM of 7% ______c. A secured loan from Argosy Gaming, which is a B- rated firm ______d. A senior subordinated bond from Argosy Gaming
Answer:
a. A Ba1 corporate bond 2 (not investment grade)
b. A ten-year BBB- corporate bond with a YTM of 7% 3 (medium risk but still investment grade)
c. A secured loan from Argosy Gaming, which is a B- rated firm 4 (less risky since it is backed by a collateral)
d. A senior subordinated bond from Argosy Gaming 1 (highest risk)
Explanation:
There are two major bond rating agencies in the US: Moody's and Standard & Poor's.
Their rankings are very similar, although the letters vary a little:
AAA: safest
AA: low risk
A: low risk
BBB: medium risk
BB: a little bit more riskier
B: risky
CCC: very high risk
CC: even riskier
C: riskiest
D: junk, in default
Ravelo Corporation has provided the following data from its activity-based costing system:
Activity Cost Pools Total Cost Total Activity
Assembly $498,520 44,000 machine-hours
Processing orders $54,263 1,100 orders
Inspection $77,589 1,100 inspection-hours
Data concerning the company's product L19B appear below:
Annual unit production and sales 430
Annual machine-hours 990
Annual number of orders 70
Annual Inspection hours 20
Direct materials cost $37.74 per unit
Direct labor cost $10.45 per unit
According to the activity-based costing system, the average cost of product L19B is closest to:
a. $4819 per unit
b. $82.31 per unit
c. $85.56 per unit
d. $7753 per unit
Answer:
Activity Cost Pools Total Cost Total Activity
Assembly $498,520 44,000 machine-hours
Processing orders $54,263 1,100 orders
Inspection $77,589 1,100 inspection-hours
Explanation:
Activity Cost Pools Total Cost Total Activity
Assembly $498,520 44,000 machine-hours
Processing orders $54,263 1,100 orders
Inspection $77,589 1,100 inspection-hours
Laurie saved for six months to have enough money to buy a new designer outfit to wear to a special party. She had to travel to a larger city to purchase this outfit, but it was worth it to her because it made her feel beautiful and confident. The difference between the benefits Laurie perceived from this purchase and the cost to her to acquire these benefits describes her _____.
Answer: B) customer value
Explanation:
Customer Value refers to the perception of what the good in question is worth to the customer buying it as opposed to other alternatives. Essentially, how much is it worth to the buyer vs the opportunity costs of buying it. The customer values a good when they feel like they gained more benefits than they paid for or that it was an equal trade-off and so do not mind the cost.
Laurie gained confidence and felt beautiful as a result of the attire and so decided that the cost was worth it.
Worth refers to whether the consumer feels he or she received more benefits and services than he or she paid for.
What is the customer Value?Customer value is the financial compensation that a customer receives in exchange for the amount paid for a market item.
In general, a client evaluates the net benefits of one item to those of its prospective alternatives. It aids in determining whether the client believes they received adequate value for the cost of the offering.
Thus, Option B is correct about Laurie.
For more information about Customer Value refer to the link:
https://brainly.com/question/15236362
Berk Company produces three products: Tic, Tac, and Toe. Tic requires 160 machine setups, Tac requires 150 setups, and Toe requires 190 setups. Berk has identified an activity cost pool with allocated overhead of $32,000 for which the cost driver is machine setups. How much overhead is assigned to the Tic product?
Answer:
Overhead assigned to Tic= $10,240
Explanation:
Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers.
Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.
Activity rate per driver is calculated as:
Activity overhead for the period / Total cost drivers for the period
Set -up activity overhead = $32,000
Total expected cost drivers for activity set up = sum of the set ups for the three products
Total set ups= 160 +150 + 190 = 500 set ups
Overhead rate per set up
= $32,000/500 set ups
= $64 per set up
Overhead assigned to Tic = Overhead rate per set up × No of setups for TIC
= $64 per setup ×160=$10,240
Overhead assigned to Tic= $10,240
Light-emitting diode (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.45 and lasts for 1,000 hours. A 7-watt LED, which provides the same light, costs $2.25 and lasts for 40,000 hours. A kilowatt-hour of electricity costs $.121, which is about the national average. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary quite a bit depending on location and user type (you can get information on your rates from your local power company). An industrial user in West Virginia might pay $.04 per kilowatt-hour whereas a residential user in Hawaii might pay $.25. You require a 10 percent return and use a light fixture 500 hours per year. What is the break-even cost per kilowatt-hour?
Answer:
(A) For incandescent bulb, your break even cost is $32.67
(B) With LED bulb, your break even cost is $3.8115
Conclusion: It makes financial sense to use LED bulbs.
Explanation:
We start by checking the cost of your electricity bill when you use incandescent bulb and when you use LED bulb.
Since your answers are to be in kilowatt hour, we transform the watt measurement of the bulbs into kilowatt thus:
60watt incandescent bulb = 0.06kw
7watt led bulb = 0.007kw
National average cost of electricity per kilowatt hour is $1.21
Cost per kWh using incandescent bulb is 1.21 × 0.06 = $0.0726
Cost per kWh using led bulb is 1.21 × 0.007 = $0.00847
(A) WITH INCANDESCENT
0.06kw × 500hrs/year = 30kwhrs/year
Cost of electricity bill = 1.21 × 30 =$36.3
Your 10% return = $3.63
Break even cost per year, in kWh is = 36.3 - 3.63 = $32.67
(B) WITH LED
0.007kw × 500hrs/year = 3.5kwhrs/year
Cost of electricity bill = 1.21 × 3.5 = $4.235
Your 10% return = $0.4235
Break even cost per year in kWh is = 4.235 - 0.4235
(C) The incandescent bulb costs $0.45 but draws you a bill of $32.67 a year WHILE the led bulb costs $2.25 but draws you a bill of $3.8115
We conclude hence, that light-emitting diode bulbs make financial sense. Overlook the cost of purchasing the bulb because it uses less kilowatts per hour and draws you a very low bill, compared to the incandescent bulb!
Mary runs an ad in the paper offering a $5 reward for the return of her lost dog, Sparky. Mary has made a promise to pay the person who performs the act of returning Sparky. This is a(n) _____ contract. Select one: a. quasi b. implied c. bilateral d. unilateral
Answer:
This is a Unilateral contract
Explanation:
Mary has made a promise to pay the person who performs the act of returning Sparky therefore this is an example of a unilateral contract.
A unilateral contract is a type of contract agreement where an offeror such as Mary makes a promise to pay after the performance of a specified act, which is to return her dog Sparky
Which is not an example of an intangible asset?
1_A trademark
2_A computer
3_A patent
4_A copyright
An intangible asset excludes a computer. Thus the correct answer is (2).
What is an intangible asset?An intangible asset is referred to as a thing that an individual is unable to see or touch. An intangible asset is a lack of physical appearance. One can not transfer them from one location to another.
One can able touch or see a personal computer so it is not an intangible asset. Therefore, option (2) is appropriate.
Learn more about intangible assets, here:
https://brainly.com/question/14892188
#SPJ2
A part of a business's message that distinguishes it from all its competitors
is referred to as what?
Answer: Brand.
Explanation:
A brand usually a logo, name, word or sentence or the comnbination is a company's valuable assets that distinguishes its their product from its competitors. Overtime, A Brand which proves credibility will promote the company's worth and value and endear potential buyers to the benefit its owners and shareholders. A brand becomes a trademark when legal protection is conferred on it.
Answer:
unique selling proposition
Explanation:
A company began its fiscal year with inventory of $191,000. Purchases and cost of goods sold for the year were $950,000 and $984,000, respectively. What was the amount of ending inventory
Answer:
Ending inventory= $157,000
Explanation:
Giving the following information:
Beginning inventory= $191,000.
Purchases and cost of goods sold for the year were $950,000 and $984,000.
To calculate the ending inventory, we need to use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
984,000= 191,000 + 950,000 - ending inventory
984,000= 1,141,000 - ending inventory
Ending inventory= $157,000
Yum! Brands, the parent company of KFC, has pursued an aggressive growth strategy in China. There are now more than 3,700 restaurants in 650 Chinese cities, and KFC has a 40 percent market share of the entire fast-food industry there. Yum! Brands China owns and directly manages about 90 percent of its Chinese stores, so it appears that the company prefers __________ in this market.
Answer:
Direct Investment
Explanation:
DIRECT INVESTMENT can be defined as an investment in which a company, organisation or business owner decide to venture into business with another country which is know as foreign business enterprise in order to acquire and obtain a controlling interest in the enterprise which is why DIRECT INVESTMENT is a way of controlling the ownership of a business in one country by an another entity which is based in another country.
Most Investors use the DIRECT INVESTMENT way to put money into a business operating in another country.
Therefore based on the information given the company prefers DIRECT INVESTMENT method which is why the parent company of KFC has more than 3,700 restaurants in 650 Chinese cities in which the Brands China owns and directly manages about 90 percent of its Chinese stores.
Hence this method is called the DIRECT INVESTMENT method .
An engineer analyzing cost data about hydrogen sulfide monitors discovered that the information for the first three years was missing. However, he knew the cost in year 4 was $1250 and that it increased by 5% each year thereafter. If the same trend applied to the first three years, the cost in year 1 was:
Answer:
Find below full question:
An engineer analyzing cost data about hydrogen sulfide monitors discovered that the information for the first three years was missing. However, he knew the cost in year 4 was $1250 and that it increased by 5% each year thereafter. If the same trend applied to the first three years, the cost in year 1 was:
a. $1312.50
b. $1190.48
c. $1028.38
d. $1079.80
Option D,$ 1,079.80 is correct
Explanation:
The present value formula can be used to determine the cost in year one as follows:
PV=FV*(1+r)^-n
FV is the future cost in year 4 which is $1,250
r is the growth rate of cost per year which is 5%
n is the duration of time involved,it is 3 because the difference between year 4 and year 1 is 3
PV=$1250*(1+5%)^-3
PV=$1250*(1.05)^-3
PV=$1250*0.863837599
PV=$ 1,079.80
The cost of the hydrogen sulfide monitor in year one is $ 1,079.80
In essence option D,$ 1,079.80 is correct
The evaluation of a firm's strengths, weaknesses, opportunities, and threats is called a SWOT analysis. A SWOT analysis can be a valuable tool in the development of a marketing plan, but too often the SWOT analysis is not well thought out and proves to be an ineffective waste of time. Perhaps the most common mistake when conducting a SWOT analysis is the failure to separate internal issues from external issues. The strengths and weaknesses aspects of the SWOT analysis focus on internal capabilities. The opportunities and threats aspects focus on the external environment. Select the most appropriate category for the descriptors below.1. Post office closings2. JPM has the superior information technology infrastructure3. Increasing demand for international packages4. JPM has an excellent workforce and human resource department5. Potential global economic recession6. JPM has increasing labor costs7. JPM has less fuel-efficient planes8. Increasing fuel costs due to turmoil in the Middle East
Answer: Please refer to Explanation
Explanation:
SWOT ANALYSIS is indeed a very useful matrix for evaluating a firm's strong points.
The Strengths and Weaknesses portion focus on the internal Environment with the Strengths looking at what the company does better than other companies and has a competitive advantage in while weaknesses look at where the company is lacking.
The Threats and Opportunities focus on the External Environment. The Threats refer to any and every potential source of negative effects on the company while Opportunities are the potential chances that a company can capitalise on to make themselves more profitable.
Classifying the above,
1. Post office closings. OPPORTUNITIES
This is because JPM as a Delivery Service can then take over the customers that can no longer use the closed Post Offices.
2. JPM has the superior information technology infrastructure. STRENGTHS.
This is an area that JPM excels in making it a strength.
3. Increasing demand for international packages. OPPORTUNITIES.
This is a chance for JPM to grow as they can capitalise on this increased demand to increase profitability.
4. JPM has an excellent workforce and human resource department. STRENGTH.
JPM has a strength in this area because this is something that they are good at.
5. Potential global economic recession. THREATS.
This is a Threat to JPM as it could potentially affect their business negatively.
6. JPM has increasing labor costs. WEAKNESSES.
This is an internal problem that is a weakness for JPM. Rising labour costs means lower profits so they should be careful.
7. JPM has less fuel-efficient planes. WEAKNESSES.
Less fuel efficient planes means that they burn more fuel to deliver goods around the world so they have more expenses. This is a weakness that needs to be curtailed.
8. Increasing fuel costs due to turmoil in the Middle East. THREATS.
This is a threat because it is from the External Environment but threatens to increase the costs of deliveries for JPM.
Kelly received a $60,000 salary during 2017. Her federal income tax withholding rate was 20%, and the Social Security base amount for 2017 was $118,500.What is the total amount that her employer should have withheld in 2017?
A. $15,390
B. $16,590
C. $15,979
D. $6,849
Answer: B. $16,590
Explanation:
The FICA tax rate which is the combined Social Security and Medicare rate for 2017 was 7.65%.
Assuming a base of $118,500 this means that you are taxed on your first $118,500 in earnings.
Kelly only made $60,000 so the tax rate will apply to her $60,000.
Adding that to the 20% that she is due to pay on Federal Income tax the total amount her employer withheld was,
= (60,000 * 20%) + (60,000 * 7.65%)
= 12,000 + 4,590
= $16,590
Option B is correct.
Identify the information that the current Generally Accepted Accounting Principles and Auditing Standards require the financial statements of an entity to show for the reporting period:_________.1. Budgeting vs actual comparisons of key balance sheet and income statement accounts2. Market value of the entity's net assets3. Number of people employed by the entity4. Investments by and distribution to owners (ex: stockholders) during the period5. Financial Position at the end of the period6. Cash flows during the period7. Earnings for the period
Answer:
4. Investments by and distribution to owners (ex: stockholders) during the period.
5. Financial Position at the end of the period.
6. Cash flows during the period.
7. Earnings for the period.
Explanation:
The information that the current Generally Accepted Accounting Principles (GAAP) and Auditing Standards require the financial statements of an entity to show for the reporting period are;
1. Investments by and distribution to owners (ex: stockholders) during the period.
2. Financial Position at the end of the period.
3. Cash flows during the period.
4. Earnings for the period.
The Financial Accounting Standards Board (FASB) issued some standards, accounting principles, and procedures to be followed by public companies in the United States of America for reporting and recording statements of income, this is known as the Generally Accepted Accounting Principles (GAAP).
The GAAP is also adopted by the Securities and Exchange Commission (SEC) to measure, analyze and regulate the stock market.
Jamal just inherited some money from a distant cousin overseas. He would like to put some of it in a bond and is looking at two choices. Bond A has five years to maturity, a semiannual coupon of 6% and a face value of $1,000. Bond B has ten years to maturity, an annual coupon of 4% and a face value of $1,000. Jamal knows that the rate expected in the marketplace for investments similar to these is 5%.
1. What is the present value of the coupon stream on each bond?
2. What is the present value of the face value on each bond?
3. What is the total value of each bond?
4. If Jamal sees the two bonds in the Wall Street Journal and they are both priced at 99, which bond should he buy?
Answer:
i. = $262.56 , = $308.87
ii. = $781.198 , = $613.91
iii. Bond A = $1,043.76 , Bond B = $922.78
Explanation:
(i) Present Value of Coupon Payment
Bond A :- Semiannual Coupon Amount = $1,000 * 6% * 6 / 12 = $30
Total Semiannual Period = 5 * 2 = 10
Semiannual Interest = 5% / 2 = 2.5%
Present Value of Coupon Payment = $30 * PVAF (2.5% , 10)
= $30 * 8.752
= $262.56
Bond B :- Annual Coupon Amount = $1,000 * 4% = $40
Annual Periods = 10
Annual Interest = 5%
Present Value of Coupon Payment = $40 * PVAF ( 5% , 10)
= $40 * 7.72
= $308.87
(ii) Present Value of Face Value of Bond
Bond A = $1,000 * PVF (2.5% , 10 periods)
= $1,000 * 0.7812
= $781.198
Bond B = $1,000 * PVF (5% , 10)
= $1,000 * 0.6139
= $613.91
(iii) Total Value of Each Bond
Bond A = $262.56 + $781.198 = $1,043.76
Bond B = $308.87 + $613.91 = $922.78
(iv)If Jamal sees the two bonds in the Wall Street Journal and they are both priced at 99, he should consider:
If the Bond Current Price is lower than Bond Fair Price then he should Buy the Bond
If the Bond Current Price is higher than Bond Fair Price then he should not buy the bond
Market Price of Bond = $99
He should buy Bond A But not Bond B
There are many perfumes on the market, but Demeter, a superior brand of perfume, has memorable scents that leads to emotional ties. Which element of the marketing plan is being considered when the marketing manager decided initially to market the perfume in a limited number of very exclusive specialty stores?
Answer:
Place
Explanation:
The four P's of marketing is a number of tactics employed in a marketing plan to achieve better sales of a product. These four P's include; Price, Place, Promotion, and Product. The place factor takes note of the location where the target customers are most likely to be reached. To achieve better sales of a product, it is very important that the right location is chosen so that consumers who are interested in it can access it easily. For example, it would make no sense to sell grocery products in a boutique. That is not where the target customers are.
So, when the marketing manager of Demeter Perfumes decided to market the perfume in a limited number of very exclusive specialty stores, it is because that place is where the target market (most likely, high income earners), can be found easily.
A consumer has $130 in monthly income to be spent on two goods Z and B. The price of good Z (Pz) is $8.00. The Marginal Rate of Transformation (MRT) is equal to minus−2. That is 2 units of good B can be traded for 1 unit of good Z. What is the price of good B in $?
Answer:
Price of B is $4
Explanation:
Marginal rate of transformation is defined as the amount of a good x has to stop being produced inorder to produce a certain amount of a good y. Factors of production and technology used are assumed to be constant.
In this scenario the marginal rate of transformation is -2, that is 2 units of good B can be traded for 1 unit of good Z, mathematically
2 * Pb = Pz
Substitute price of Z
2* Pb = $8
Pb= 8 ÷ 2
On= $4
James Company began the month of October with inventory of $19,000. The following inventory transactions occurred during the month:
A. The company purchased merchandise on account for $28,000 on October 12. Terms of the purchase were 3/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $540 were paid in cash.
2. On October 31, James paid for the merchandise purchased on October 12.
3. During October merchandise costing $18,600 was sold on account for $28,800.
4. It was determined that inventory on hand at the end of October cost $28,100.
Required:
1. Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold.
2. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions.
Answer:
1. Entries using periodic inventory system
October 12
J1
Purchases $28,000 (debit)
Trade Payable$28,000 (credit)
j2
Freight Charges $540 (debit)
Cash $540 (credit)
October 31
Trade Payable $28,000 (debit)
Cash $28,000 (credit)
October 31
Trade Receivable $28,800 (debit)
Revenue $28,800 (credit)
October 31
Inventory $28,100 (debit)
Cost of Goods Sold $28,100 (credit)
2. Entries using periodic inventory system
October 12
J1
Merchandise $28,000 (debit)
Trade Payable$28,000 (credit)
j2
Freight Charges $540 (debit)
Cash $540 (credit)
October 31
Trade Payable $28,000 (debit)
Cash $28,000 (credit)
October 31
J1
Trade Receivable $28,800 (debit)
Revenue $28,800 (credit)
J2
Cost of Sales $18,600 (debit)
Merchandise $18,600 (credit)
October 31
Merchandise $28,100 (debit)
Cost of Goods Sold $28,100 (credit)
Explanation:
1. Entries using periodic inventory system
With periodic system, inventory valuation is done at end of a specific period.
2. Entries using periodic inventory system
Perpetual system is the method of recalculating the value of goods held after each transaction
Once you have collected data for a message, you’ll need to find a way to organize it. Well-organized messages group similar ideas together, allowing readers to see relationships and follow arguments. You can use two primary techniques for organizing your information: a scratch list and an outline. Answer the question based on the following scratch list.
1. The Boston Hotel
2. High-end linens
3. 600-thread-count sheets
4. Coffeemaker and selected teas
5. Imported beer
6. Fresh-squeezed juices
7. Affordability
8. Food and drink
9. Double-thick bath towels
10. Silk pillowcases
11. Raw silk curtains with gold embellishments
12. $100/night four-star rooms
13. Free snacks, shampoo, and conditioner
14. Free wireless Internet
Which group includes specific supporting detail that could be added to the previous scratch list?
a. High-end linens; free wireless Internet; free snacks, shampoo, and conditioner
b. Safety, comfort, half-price Tuesday
c. Sparkling water, evening wine tasting, four-star hotel restaurant
d. Business messages typically follow either a direct strategy or an indirect strategy. The direct strategy, or frontloading, places the main idea at the beginning of a message.
e. Using a direct opening strategy .
f. An indirect strategy places the main idea after an explanation or reason.
Answer:
c. Sparkling water, evening wine tasting, four-star hotel restaurant
Explanation:
The scratch list in general includes a series of services that are provided by a Hotel (the Boston Hotel). Because of the items included in the list, it seems that the Hotel is quite fancy.
Numeral c would be a good addition to the scratch list, because it lists items that would fall in place for the type of Hotel being described: sparking water, evening wine tasting, and a the mention of a four-star hotel restaurant.
Marx and Springsteen provides hair-cutting services in the local community. In February, the business cut the hair of 200 clients, earned $ 5,100 in revenues, and incurred the following operating costs:
Hair saloon expense: $500
Building rent expense: 1458
Utilities expense: 200
Depreciation expense--- Equipment: 50
Required:
What was the cost of service to provide one haircut?
Answer:
Cost of service to provide one haircut is $ 11.04
Explanation:
Hair saloon expense: $500
Building rent expense: $1,458
Utilities expense: $200
Depreciation expense --- Equipment: $50
Total operating cost = Hair saloon expense + Building rent expense + Utilities expense + Depreciation expense
= $500 + $1,458 + $200 + $50
= $ 2,208
Total hair cuts = 200
Therefore, cost per hair cut = Total operating cost ÷ Total hair cuts
= $2,208 ÷ $200
= $ 11.04
Accounting Cycle Review 15 a-e
Cullumber Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.
Debit
Credit
Cash
$26,100
Accounts Receivable
60,000
Inventory
23,300
Land
67,200
Buildings
81,700
Equipment
41,000
Allowance for Doubtful Accounts
$470
Accumulated Depreciation—Buildings
25,500
Accumulated Depreciation—Equipment
14,200
Accounts Payable
19,500
Interest Payable
–0–
Dividends Payable
–0–
Unearned Rent Revenue
7,200
Bonds Payable (10%)
44,000
Common Stock ($10 par)
28,000
Paid-in Capital in Excess of Par—Common Stock
5,600
Preferred Stock ($20 par)
–0–
Paid-in Capital in Excess of Par—Preferred Stock
–0–
Retained Earnings
65,330
Treasury Stock
–0–
Cash Dividends
–0–
Sales Revenue
570,000
Rent Revenue
–0–
Bad Debt Expense
–0–
Interest Expense
–0–
Cost of Goods Sold
380,000
Depreciation Expense
–0–
Other Operating Expenses
36,900
Salaries and Wages Expense
63,600
Total
$779,800
$779,800
Unrecorded transactions and adjustments:
1. On January 1, 2020, Cullumber issued 1,000 shares of $20 par, 6% preferred stock for $23,000.
2. On January 1, 2020, Cullumber also issued 1,000 shares of common stock for $24,000.
3. Cullumber reacquired 260 shares of its common stock on July 1, 2020, for $46 per share.
4. On December 31, 2020, Cullumber declared the annual cash dividend on the preferred stock and a $1.30 per share dividend on the outstanding common stock, all payable on January 15, 2021.
5. Cullumber estimates that uncollectible accounts receivable at year-end is $6,000.
6. The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,200.
7. The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,100.
8. The unearned rent was collected on October 1, 2020. It was receipt of 4 months’ rent in advance (October 1, 2020 through January 31, 2021).
9. The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded.
(Ignore income taxes.)
Requirment: Prepare a Balance Sheet as at December 31, 2020.
Answer:
Cullumber CorporationBalance Sheet as of December 31, 2020:Current Assets:
Cash $61,140
Accounts Receivable 60,000
less allowance for doubtful 6,000 54,000
Inventory 23,300 138,440
Non-current Assets:
Land 67,200
Buildings 81,700
Accumulated Depreciation 28,050 53,650
Equipment 41,000
Accumulated Depreciation 17,890 23,110 143,960
Total Assets $282,400
Liabilities + Equity:
Current Liabilities:
Accounts Payable 19,500
Interest Payable 4,400
Dividends Payable 5,802
Unearned Rent Revenue 1,800 31,502
Non-current Liabilities:
Bonds Payable (10%) 44,000 $75,502
Equity:
Common Stock ($10 par) 38,000
Paid-in Capital in Excess of Par—Common 10,240
Preferred Stock ($20 par) 20,000
Paid-in Capital in Excess of Par—Preferred 3,000
Retained Earnings 138,258
Treasury Stock (2,600) 206,898
Total Liabilities + Equity $282,400
Explanation:
a) Cullumber Corporation's Unadjusted Trial Balance as of December 31, 2020:
Debit Credit
Cash $26,100
Accounts Receivable 60,000
Inventory 23,300
Land 67,200
Buildings 81,700
Equipment 41,000
Allowance for Doubtful Accounts $470
Accumulated Depreciation—Buildings 25,500
Accumulated Depreciation—Equipment 14,200
Accounts Payable 19,500
Interest Payable –0–
Dividends Payable –0–
Unearned Rent Revenue 7,200
Bonds Payable (10%) 44,000
Common Stock ($10 par) 28,000
Paid-in Capital in Excess of Par—Common Stock 5,600
Preferred Stock ($20 par) –0–
Paid-in Capital in Excess of Par—Preferred Stock –0–
Retained Earnings 65,330
Treasury Stock –0–
Cash Dividends –0–
Sales Revenue 570,000
Rent Revenue –0–
Bad Debt Expense –0–
Interest Expense –0–
Cost of Goods Sold 380,000
Depreciation Expense –0–
Other Operating Expenses 36,900
Salaries and Wages Expense 63,600
Total $779,800 $779,800
b) Cullumber Corporation's Adjusted Trial Balance as of December 31, 2020:
Debit Credit
Cash $61,140
Accounts Receivable 60,000
Inventory 23,300
Land 67,200
Buildings 81,700
Equipment 41,000
Allowance for Doubtful Accounts $6,000
Accumulated Depreciation—Buildings 28,050
Accumulated Depreciation—Equipment 17,890
Accounts Payable 19,500
Interest Payable 4,400
Dividends Payable 5,802
Unearned Rent Revenue 1,800
Bonds Payable (10%) 44,000
Common Stock ($10 par) 38,000
Paid-in Capital in Excess of Par—Common Stock 10,240
Preferred Stock ($20 par) 20,000
Paid-in Capital in Excess of Par—Preferred Stock 3,000
Retained Earnings 65,330
Treasury Stock 2,600
Cash Dividends 5,802
Sales Revenue 570,000
Rent Revenue 5,400
Bad Debt Expense 5,530
Interest Expense 4,400
Cost of Goods Sold 380,000
Depreciation Expense 6,240
Other Operating Expenses 36,900
Salaries and Wages Expense 63,600
Total $839,412 $839,412
c) Cash Account Adjustment:
Balance as per Trial Balance $26,100
Preferred Stock 23,000
Common Stock 24,000
Treasury Stock (11,960)
Adjusted Cash balance $61,140
d) Income Statement
Sales Revenue $570,000
Cost of goods sold 380,000
Gross profit $190,000
Rent Revenue 5,400
Total $195,400
less expenses:
Bad Debt Expense 5,530
Interest Expense 4,400
Depreciation Expense 6,240
Other Operating Expenses 36,900
Salaries and Wages Expense 63,600 116,670
Net Income $78,730
Retained Earnings 65,330
Dividends (5802)
Retained Earnings carried forward $138,258
Steeler Company has issued bonds that pay semiannually with the following characteristics: Coupon Yield to Maturity Maturity Duration 10% 10% 10 years 6.76 years If the yield to maturity decreases to 8.045%, the expected percentage change in the price of the bond using modified duration would be ________.
Answer:
the expected percentage change in the price of the bond using modified duration would be 12%
Explanation:
A= Semi annually= 2
YM= Yield to Maturity= 10%
M= Maturity= 10%
MtD= Maturity duration= 6.76 years
Modified duration (MD)= MtD/1+YM/A
MD= 6.76/1+10%/2= 6.76/1.05= 6.438 approx 6.44 years
Change in Yield to maturity = 8.045%- 10%= -1.955%
Change in percentage Price= -Modified duration*Change in Yield to maturity
Change in percentage Price= -6.44*(--1.955%
)= 12.59%
A project manager is preparing two documents for risk management. One contains sources of overall project risk and also summary information on individual risks. The second describes individual risks identified. What name should the project manager give to the first document
Answer: Risk Report
Explanation:
A Risk Report for a project contains all the risk that the project is exposed to. This includes both project risk as well as individual risks related to the components projects in the overall project.
A Risk Report details the risks such as Supplier failure, Inflation, Pending Government Regulations and the like. It then takes these and summarizes them for presentation to those who require this information in the company so that appropriate safeguards may be set up and precautions taken.
This describes the first document and so should be what the Project Manager names it.
On January 1, 2021, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $470,000. Inventory data for 2021 through 2023 are as follows:
Date Ending Inventory at Year-End Costs Cost Index
12/31/2021 $391,400 1.03
12/31/2022 454,250 1.15
12/31/2023 477,400 1.24
Required: Calculate Taylor's ending inventory for 2021, 2022, and 2023.
Answer:
Taylor Company ending inventories are
2021= $380600
2022= $397850
2023= $386350
Explanation:
Kindly check attached pdf for the computation of the solution
Ferdinand’s employer will match 50% of his $250 monthly contributions to his 401(k). This means that Ferdinand’s employer will put 50% of $250 = $125 into Ferdinand’s 401(k) account each month in addition to Ferdinand’s $250. What a swell benefit
Answer and Explanation:
The computation of the given question is shown below:-
Total Contributions = Monthly contribution + Amount invested in Ferdinand’s 401(k)
= $250 + $125
= $375
1. Future Value = PMT [((1 + r)n - 1) ÷ r
Future value = 375 × ((1 + 0.03 ÷ 12) × 12 × 40 - 1) ÷ (0.03 ÷ 12)
= $347,272
2. Ferdinand deposit = Given Amount × Total number of months in a year × Number of years
= $250 × 12 Months × 40 Years
= $120,000
3. The Amount put in by the employer = 50% of $250 ×Total number of months in a year × Number of years
= $125 × 12 Months × 40 Years
= $60,000
4. Interest = Future value - Ferdinand deposit - The Amount put in by the employer
= $347,272 - $120,000 - $60,000
= $167,272
We simply applied the above formulas
A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2 3 4 Project X -$1,000 $100 $320 $400 $700 Project Y -$1,000 $1,000 $110 $55 $45 The projects are equally risky, and their WACC is 13%. What is the MIRR of the project that maximizes shareholder value
Answer:
Project X maximizes shareholder value (highest NPV) and has a MIRR of 14.27%.
Explanation:
year cash flow project X cash flow project Y
0 -1,000 -1,000
1 100 1,000
2 320 110
3 400 55
4 700 45
WACC = 13%
Using an excel spreadsheet I calculated the projects' NPV, IRR and MIRR
NPV IRR MIRR
project X $45.65 15% 14.27%
project Y $36.82 16% 14.03%
The modified internal rate of return (MIRR) considers that the project's cash inflows are invested at the company's WACC and the initial investment is financed at a certain debt rate (in this case the same WACC).
The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor. At the end of the most recent year the firm had current assets of $49,700, net fixed assets of $248,300, current liabilities of $28,400, and long-term debt of $101,600.
A. Calculate Caraway's stockholders' equity.B. What is the firm's net working capital?
Answer:
A.
$168,000
B.
$21,300
Explanation:
A.
As per accounting equation
Assets = Liabilities + Equity
Equity = Assets - Liabilities
Placing values in the equation
Equity = ( Current assets + Net Fixed Assets ) - ( Current Liabilities + Long term debt )
Equity = ( $49,700 + 248,300 ) - ( 28,400 + 101,600)
Equity = $168,000
B.
Net Working capital is the net of current assets and current liabilities of the company.
Use following formula of net working capital
Net working capital = Current assets - current liabilities
Net working capital = $49,700 - 28,400
Net working capital = $21,300
Dollar-value LIFO:
a. Starts with ending inventory measured at current costs and re-creates LIFO layers for measuring inventory costs.
b. Increases the recordkeeping costs of LIFO.
c. Only is allowed for internal reporting purposes.
d. None of these answer choices are correct.
Answer:
a. Starts with ending inventory measured at current costs and re-creates LIFO layers for measuring inventory costs.
Explanation:
Dollar-value LIFO refers a technique of accounting that employed for inventory based on the last-in-first-out model.
To obtain the dollar-value LIFO, the conversion price index that will be used to calculate the LIFO cost layer for each period must be calculated first.
Therefore, Dollar-value LIFO starts with ending inventory measured at current costs and re-creates LIFO layers for measuring inventory costs.
Which of the following represents an increase in living standards over the past century? Check all that apply. Increased human activities have magnified the pollution of air and water. The purchasing power of a dollar has declined over time due to inflation. Medical breakthroughs enable people to enjoy better healthcare nowadays.
Answer:
Medical breakthroughs enable people to enjoy better healthcare nowadays.
Explanation:
An increase in living standard means that the lives of people are better off.
Advances in medicine have made it possible to find cure to various diseases. This improves standard of living.
Increased pollution of air and water and decline of dollar value have negative effects on living standard.
Pollution affects human health negatively and can cause diseases which negatively affect standard of living. Also, pollution can cause floods and other environmental disasters. Floods can displace people from their homes and this affects standard of living negatively.
Decrease in dollar value has made items more expensive.
I hope my answer helps you
