Answer: E.) Greener Gardens follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital.
Explanation: From the data given above, it could be inferred that Greener gardens Co. due to the seasonal nature of its business takes a conservative and measured approach into financing its current asset such as cash, account receivables, inventory, short term liability or debt
using permanent capital in other to shore up running cost or fluctuation which could result due to low revenue during the off peak period and cut the company's spending on certain short term needs.
Answer:
The answer is E. Gardens follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital.
Explanation:
The current asset financing policy concentrates on determining the most appropriate method of financing both temporary and permanent current assets.
There are 3 types of working capital financing policy - matching, conservative and aggressive.
In conservative financing policy, a business is required to maintain high levels of current assets in relation to its sales so as to absorb any sudden changes in the sales and thus avoid disruption in the production plans.
Working capital equals total current asset minus total current liability.
For peak period:
Current assets:
Cash. $50
Marketable securities. -
Account receivables. $40
Inventories $100
Total current assets. $190
Current liabilities:
Payables and accruals. $30
Short term bank debt. $50
Total current liabilities. $80
Therefore, working capital is:
$190 - $80
=$110
So Greener Gardens co. has excess working capital to cover for any sudden change in price.
Also for off peak:
Current assets:
Cash. $30
Marketable securities. $20
Account receivables. $20
Inventories $50
Total current assets. $120
Current liabilities:
Payables and accruals. $10
Short term bank debt. -
Total current liabilities. $10
Therefore, working capital is:
$120 - $10
=$110
For both on peak and off peak, the working capital is the same, meaning it is maintain a conservative policy that is dependent on its assets for financing.
Using a method of trend projection, the monthly sales for Yazici Batteries, Inc., were as follows: Month Sales Feb 21 Jan 20 Mar 15 Apr 15 May 13 Jun 16 Jul 17 Aug 17Sept 20Oct 22 Nov 23 Dec 23The forecast for the next month (Jan) using the naive method =_____sales. The forecast for the next period Jan using a 3 month moving average approach =_____sales. The forecast for the next period Jan using a 6 month weighted average with weights of 0.10, 0.10, 0.10, 0.20, 0.20 and 0.30, where the heaviest weights are applied to the most recent month =_____sales. Using exponential smoothing with α = 0.35 and a september forecast of 20.00, hte forecast for the next period Jan =_____sales. Using a method of trend projection, the forecast for the next month Jan =_____sales. The method that can be used for making a forecast for the month of March is_____.
Answer:
the answer is C or b im not 100% sure
Under Tim Cook's leadership, the emphasis at Apple remains on innovation, which is valued in the marketplace. Because of this, it is important that Cook assemble what type of top management team? a. One that is built from the external labor market b. One that is built from the internal labor market c. One that is homogeneous d. One that is heterogeneous
Answer:
D. One that is heterogeneous
Explanation:
It is important that Tim Cook assembles a heterogeneous top management team.
A heterogeneous top management team introduces a variety of perspectives to the company with greater possibility for strong competitive action. It creates more tendencies for people to think outside the box, giving way to more creative decision making, innovation, and strategic actions. It also promotes debate.
Therefore Tim Cook should assemble a heterogeneous top management team since innovation is one of its characteristics.
As of December 31, 2019, Armani Company’s financial records show the following items and amounts. Cash $ 10,300 Accounts receivable 9,300 Supplies 6,300 Equipment 5,300 Accounts payable 11,600 Common stock 14,300 Retained earnings, Dec. 31, 2018 3,300 Retained earnings, Dec. 31, 2019 5,300 Dividends 13,300 Consulting revenue 33,600 Rental revenue 22,600 Salaries expense 20,300 Rent expense 12,300 Selling and administrative expenses 8,300 Required: Prepare the 2019 year-end income statement for Armani Company.
Answer:
Net income is $15,300
Explanation:
The income statement for Armani Company as at 31st December is shown below:
$ $
Consulting revenue 33,600.00
Rental revenue 22,600.00
Total revenue 56,200.00
Salaries expense 20,300.00
rent expense 12,300.00
selling and administrative expense 8,300.00
Total expenses ( 40,900.00 )
Net income for the year 15,300.00
The net income is total revenue less all expenses incurred in the year.
The total revenue comprises of consulting and rental revenue while expenses consist of salaries,rent as well as selling and administrative expenses.
g Dybala Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 110 100 % Variable expenses 66 60 % Contribution margin 44 40 % The company is currently selling 5,120 units per month. Fixed expenses are $210,000 per month. The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 230 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change
Answer:
Effect on income= $3,520 increase
Explanation:
Giving the following information:
Contribution margin= 44
The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 230 unit increase in monthly sales.
To calculate the effect on income, we need to use the following formula:
Effect on income= increase in contribution margin - increase in costs
Effect on income= 230*44 - 6,600
Effect on income= $3,520 increase
In its first month of operations, Concord Corporation made three purchases of merchandise in the following sequence: (1) 250 units at $6, (2) 350 units at $8, and (3) 450 units at $9. Assuming there are 150 units on hand at the end of the period, compute the cost of the ending inventory under (a) the FIFO method and (b) the LIFO method. Concord Corporation uses a periodic inventory system.
Answer:
FIFO - $1350
LIFO - $900
Explanation:
Total inventory = 250 + 350 + 450 = 1050
Total inventory sold = 1050 - 150 = 900
FIFO means first in , first out. It means that it is the first purchased inventory that is the first to be sold. So the ending inventory would consist of the last purchased inventory. So the cost of the ending inventory would be allocated to the 3rd purchase of inventory
150 x $9 = $1350
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold. So the ending inventory would consist of the first purchased inventory. So the cost of the ending inventory would be allocated to the 1st purchase of inventory
150 x $6 = $900
I hope my answer helps you
Our Lady of the Lake Hospital has assembled a group of employees to engage in planning activities. If the group comprises top executives such as the Chief Executive Officer, Chief Financial Officer, and Chief Marketing Officer, they would likely create
Answer: a. long-term plans.
Explanation:
Long term plans in a business are considered Strategic Plans. Strategic plans aim to formulate general long term goals and visions for what the company aims to do in future and what level they aim to be at.
These types of goals are usually for the policy makers in a company being the Top Executives who are tasked with the long term growth of the company.
The Top Executives come up with these plans and then the Mid and lower level managers come up with tactical and operational plans to meet the objectives of the plans.
Congress wishes to impose regulations on the insurance industry. What test would the United State Supreme Court use to determine whether such regulations would violate the substantive due process rights of insurance companies that would be subject to the regulations? What is the likely outcome of the case?
Answer:
Three part test.
The outcome: if the three requirements are not met, then there is not point the Government should interfere.
At the end, the law will be held.
Explanation:
In some cases, the courts are allowed to protect individual, company or business organization from Government interrupting with these individuals or business organization "fundamental right" and this is the "substantive due process rights " of insurance companies as mentioned in the question above.
The test that the United State Supreme Court can use to determine whether the regulations they want to enact would violate the substantive due process rights of insurance companies is what is known as the THREE PARR TEST.
THE THREE PART TEST has its root from cases such as that of Pasgraf V Long Island Railroad co. The three part test involves three main subjects and they are;
=> foreseeability: are the policies in which insurance companies work going to affect the consumers in the future?
=> proximity: what kind of relationship do the insurance companies have with there consumers?
=> fairness: are these policies just and fair?
CONCLUSION: if the three requirements are not met, then there is not point the Government should interfere.
To sum up international trade theory, we can say that the primary reason for trade is
Answer:
The primary reason for trade is for the economic development of a country.
Explanation:
Trade makes a significant and necessary contribution to the economy and the country's development particularly in underdeveloped countries. The rapid progress of underdeveloped countries in the Industrial field is due to their exports. In most countries, such would represent a significant share of their gross domestic product (GDP).
Nenn Co.'s allowance for uncollectible accounts was $190,000 at the end of 2024 and $200,000 at the end of 2023. For the year ended December 31, 2024, Nenn reported bad debt expense of $26,000 in its income statement. What amount did Nenn debit to the appropriate account in 2024 to write off actual bad debts?
Answer:
The amount Nenn debited to write off of actual bad debt is $36,000
Explanation:
Allowance for Uncollectible beginning = $200,000
Allowance for Uncollectible at the end = $190,000
Bad debt expense reported = $26,000
Amount Nenn debited to write off of actual bad debt = $200,000 + $26,000 - $190,000 = $36,000
Austin Fisher contributed land, inventory, and $32,000 cash to a partnership. The land had a book value of $59,000 and a market value of $103,000. The inventory had a book value of $70,900 and a market value of $65,900. The partnership also assumed a $42,000 note payable owed by Fisher that was used originally to purchase the land. Required: Provide the journal entry for Fisher's contribution to the partnership. If an amount box does not require an entry, leave it blank.
Answer:
Journal entry for Fisher's contribution to the partnership
Description
Cash $32,000 (Debit)
Land $103,000 (Debit)
Inventory $65,900 (Debit)
Payable on Note $42,000 (Credit)
Capital $158,900 (Credit)
NB: Capital= ($32,000 + $103,000 + $65,900 - $42,000) = $158,900
On January 3, Halsall Corporation purchased 1,800 shares of the company's $1 par value common stock as treasury stock, paying cash of $ 8 per share. On January 30, Halsall sold 1,200 shares of the treasury stock for cash of $9 per share. Journalize these transactions.
Answer:
The journal entries alongwith its explanation are as under:
Explanation:
Journal entry at Jan 3, to record purchase of treasury stock would include the recording of treasury stock at the price paid to the shareholders for purchase of the stock, the journal entry is as under:
Dr Treasury Stock (1800 share*$8 per share) $14,400
Cr Cash $14,400
Journal entry at Jan 30, of selling treasury stock would include the elimination of the treasury stock at the amount purchased and the remainder will will be the Paid-In Capital, the journal entry is as under:
Dr Cash (1200*9) $10,800
Cr Treasury stock (1200*8) $9,600
Cr Paid in capital from sale of treasury stock $1,200
Use exponential smoothing with trend adjustment to forecast deliveries for period 10. Let alpha = 0.4, beta = 0.2, and let the initial trend value be 4 and the initial forecast be 200.
Period- Actual Demand
1- 200
2- 212
3- 214
4- 222
5- 236
6- 221
7- 240
8- 244
9- 250
10- 266
Answer:
254.02
Explanation:
Relevant data provided
Forecast delivers for period 10
Alpha = 0.4
Beta = 0.2
Trend value = 4
Initial forecast = 200
For period 10 please look into the spreadsheet which has been attached which contains formulas and values.
Forecast including trends
The smoothed forecast is calculated below:
[tex]F_{t}=\alpha A_{t-1}+(1-\alpha )(F_{t-1}+T_{t-1})[/tex]
Smoothed trend formula is shown below:
[tex]T_{t}=\beta (F_{t}-F_{t-1})+(1-\beta )T_{t-1}[/tex]
Forecast including trend formula is calculated with the help of below formula:-
[tex]FIT_{t}= F_{t}+T_{t}[/tex]
Susan wants to prepare a presentation that will calculate the total cost of ownership for the system. What financial analysis tools are available to her, and what are the advantages (and possible disadvantages) of each tool
Personal Trainer, Inc. owns and operates fitness centers in a dozen Midwestern cities. The centers have done well, and the company is planning an international expansion by opening a new “supercenter” in the Toronto area. Personal Trainer’s president, Cassia Umi, hired an IT consultant, Susan Park, to help develop an information system for the new facility. During the project, Susan will work closely with Gray Lewis, who will manage the new operation. Background
During data and process modeling, Susan Park developed a logical model of the proposed system. She drew an entity-relationship diagram and constructed a set of leveled and balanced DFDs. Now Susan is ready to consider various development strategies for the new system. She will investigate traditional and Web-based approaches and weigh the pros and cons of in-house development versus other alternatives.
Susan wants to prepare a presentation that will calculate the total cost of ownership for the system.
What financial analysis tools are available to her, and what are the advantages (and possible disadvantages) of each tool?
Answer:
The answer is below
Explanation:
The financial tools available to her,
NPV: Net Present Value
1. It is the total value benefit minus the total value of the costs.
2. It adjusts the value of future costs and benefits to account for the time value of money.
3. The systems can be compared more accurately and consistently.
ROI: Return On Investment.
Advanatge
1. It is a % rate that compares total net benefits received from a project to the total costs of the project.
2. Companies set a minimum ROI that all projects must match or exceed.
3. Disadvantage of this tool is that it expresses only an overall average rate of the return. It is not accurate for a given time period
PAY BACK ANALYSIS
1. It determines the time it takes for an information system to pay for itself.
2. Total development and operating costs are compared with total benefits.
3. Disadvantage of this method is that pay back analyzes on costs and benefits incurred at the beginning of a system’s useful life.
Roadside, Inc. had the following balances and transactions during 2018:Beginning Merchandise Inventory10units at $ 72March 10Sold 8unitsJune 10Purchased 20units at $ 82October 30Sold 14unitsWhat is the amount of the company's ending Merchandise Inventory, as disclosed in the December 31, 2018 balance sheet, using the periodic LIFO inventory costing method?
Answer:
$576
Explanation:
The computation of the ending inventory using the periodic LIFO inventory costing method is shown below:
But before determining the ending inventory first we have to find out the ending inventory units which is
Units of ending inventory = Opening Stock + Units purchased - Units sold
= 10 + 20 - (8 + 14)
= 8 units
The Ending inventory is 8 units. So, These should be the units out of opening stock
Therefore
Ending inventory is
= 8 units × $72
= $576
Which of the following reports, which generally are shared only between the organizations that are doing business with one another, are used by auditors to assess the ICFR at one entity that does business with another entity
A. SOC-1
B. SOC-2
C. SOC-3
Answer:
A. SOC-1.
Explanation:
SOC-1 is an acronym for System and Organization Controls Report, which generally are report shared only between the organizations that are doing business with one another. It is also used by auditors to assess, test and report the Internal Control over Financial Reporting (ICFR) at one entity that does business with another entity.
The SOC-1 report is also known as Statement on Standards for Attestation Engagements (SSAE) 18, it helps to create trust and transparency among business entities.
However, it was formerly referred to as the Statement on Auditing Standards 70 (SAS 70) and usually is valid for a period of 1 year (12 months).
Burrito King (a new fast-food franchise opening up nationwide) has successfully automated burrito production for its drive-up fast-food establishments. The Burro-Master 9000 requires a constant 30 seconds to produce a batch of burritos. It has been estimated that customers will arrive at the drive-up window according to a Poisson distribution at an average of one every 45 seconds. To help determine the amount of space needed for the line at the drive-up window
A. What is the average line length (in cars)?
B. What is the average number of cars in the system (both in line and at the window)?
C. What is the expected average time in the system?
Answer:
(A)0.6600 (B) 1.325 (C) 0.997 or 1 minute
Explanation:
Solution
Given that:
The constant rate = 30 seconds
The arrival rate according to Poisson distribution is = 45 seconds
Now,
(A) We solve for the average length line of cars
The formula is given below:
Lq = λ²/ 2μ ( μ -λ)
Here,
λ = this is the mean time of arrival rate
μ = This is the mean service rate
Thus we compute for the mean time arrival rate which is given below:
The mean arrival rate λ = arrival rate/ 60 seconds
= 60/45
= 1.33 customer per minute
Then we solve for the means service rate which is given below
The mean service rate μ = 60 seconds/ mean rate
= 60/30 = 2 customer per minute
We will now solve for the average line length in cars which is shown below:
Lq = λ²/ 2μ ( μ -λ)
Lq = 1.33²/2*2 (2-1.33)
Lq = 1.7689/4 (0.67)
Lq = 1.7689/2.68
Lq = 0.6600
Therefore the average length in line for cars is 0.6600 cars
(B) We solve for the average number of cars in the system
Ls =Lq + λ /μ
Ls =0.600 + 1.33/2
Ls =0.6600 + 0.665
Ls = 1.325
(C) Finally we need to find the expected average time in the system which is shown below:
Ws = Ls/λ
Ws= 1.325/1.33 = 0.997 or 1.00
The expected time average in the system is 0.997 or 1.00 minutes.
(A) The average length in line for cars is 0.6600 cars
(B) Ls = 1.325
(C)The predicted time standard in the system is 0.997 or 1.00 minutes.
What is Average Time?The constant rate = 30 seconds
The arrival rate according to Poisson disbandment is = 45 seconds
(A) We solve for the average stature line of cars
The formula is given below:
Lq = λ²/ 2μ ( μ -λ)
Here,
λ = this is the meantime of arrival rate
μ = This is the mean service rate
Thus we compute for the meantime arrival rate which is given below:
The mean formation rate λ = arrival rate/ 60 seconds
= 60/45
= 1.33 customer per minute
Then we solve for the concessions service rate which is given below
The mean service rate μ = 60 seconds/ mean rate
= 60/30 = 2 consumer per minute
We will now solve for the average line length in cars which is shown below:
Lq = λ²/ 2μ ( μ -λ)
Lq = 1.33²/2*2 (2-1.33)
Lq = 1.7689/4 (0.67)
Lq = 1.7689/2.68
Lq = 0.6600
Hence the average length in line for cars is 0.6600 cars
(B) We solve for the average number of cars in the system
Ls =Lq + λ /μ
Ls =0.600 + 1.33/2
Ls =0.6600 + 0.665
Ls = 1.325
(C) Finally we need to find the anticipated average time in the system which is shown below:
Ws = Ls/λ
Ws= 1.325/1.33 = 0.997 or 1.00
The predicted time standard in the system is 0.997 or 1.00 minutes.
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Jennifer Burroughs is thinking about starting a firm in the upscale women's fashion industry. To get a full appreciation of the competitive nature of the industry, and how she might position her products, Jennifer has spent considerable time looking at industry-related publications, Hoover's Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety of business and industry related issues. Jennifer is conducting ________ research.A) primaryB) secondaryC) actionD) temporaryE) purposeful
Answer:
Secondary
Explanation:
Secondary research is the process of summarising and collating existing research. Original or primary research involves collection of data and analysis to make a conclusion on the subject of study.
Secondary research uses information from primary research.
In this instance Jennifer looked at industry-related publications, Hoover's Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety of business and industry related issues.
The data she is using are from primary research sources.
A firm has issued 40,000 shares of stock whose current price is $81 per share. Shareholders expect an annual return of 15%. The firm also has a two-year loan of $1,800,000 at 6.4% annual interest. It has also issued 8,500 bonds with a face value of $1,000 each, with 15 years left to maturity, semi-annual compounding, and a coupon interest rate of 5%. The bonds are currently worth (have a current market price of) $1,100 each on the market.(a) Using market values for its debt and equity, calculate the firm's weighted-average cost of capital (WACC) before taxes. Round to tenths place (e.g., 12.8%) (b) Assume a tax rate of 38% applies. Calculated the WACC after accounting for the impact taxes have with same rounding)
Answer:
(a) WACC before tax is 7.43%
(b) WACC after tax is 5.89%
Explanation:
WACC = Value of equity * cost of equity/ (Value of equity & debt) + Value of debt * cost of debt/ (Value of equity & debt)
Value of equity = number of share * current price = 40,000 * $81 = $3,240,000
Market value of bond = $1,100 * 8,500 = $9,350,000
Market value of equity & debt = $3,240,000 + $1,800,000 + $9,350,000 = $14,390,000
(a) WACC before tax = 3,240,000 * 15%/ 14,390,000 +1,800,000 * 6.4%/ 14,390,000 + 9,350,000 * 5%/ 14,390,000 = 7.43%
(b) If tax rate is 38%, then cost of debt is changed as below:
Cost of two-year loan = 6.4%* (1-38%) = 3.97%
Cost of bond = 5% * (1-38%) = 3.1%
WACC after tax = 3,240,000 * 15%/ 14,390,000 +1,800,000 * 3.97%/ 14,390,000 + 9,350,000 * 3.1%/ 14,390,000 = 5.89%
Grosheim Incorporated has fixed expenses of $211,500 per year. Right now, Grosheim Incorporated is selling its products for $100 per unit. Management is contemplating a 20% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will pay the same amount for variable costs next year). If fixed costs increase 10% next year, and the new selling price per unit goes into effect, how many units will need to be sold to breakeven?
Answer:
Breakeven in units is 3231
Explanation:
Breakeven units=fixed costs/contribution margin per unit.
new selling price=$100*(1+20%)=$120
variable cost per unit=$120*40%=$48
contribution margin=selling price per unit-variable cost per unit
contribution margin per unit=$120-$48=$72
fixed costs next year=$211,500*(1+10%)=$232,650.00
breakeven units=$232,650.00/$72=3231
The curvilinear relationship of corporate performance and diversification indicates that: a. the less related the businesses acquired, the higher performing the organization. b. dominant-business corporate strategies tend to be higher performing than related constrained or unrelated business strategies. c. none of the strategies consistently outperforms the others. d. the highest performing business strategy is related constrained diversification.
Answer: d. the highest performing business strategy is related constrained diversification.
Explanation:
Multiple studies by strategic management experts have shown that business performance tends to relate in a curvelinear fashion with diversification and have shown that the companies who take advantage of this the most are companies using a related constrained diversification strategy.
This strategy involves expanding by acquiring companies or Businesses which have a similar business to the original company and then sharing resources, assets and knowledge amongst them.
In doing this they are applying the knowledge and resources as well as core competencies that made the original company successful to the acquired businesses so that they too can grow as the original company did.
Peterson Company estimates that overhead costs for the next year will be $3,500,000 for indirect labor and $870,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 92,000 machine hours are planned for this next year, what is the company's plantwide overhead rate? (Round your answer to two decimal places.)
Answer:
The company's plantwide overhead rate is $47.5
Explanation:
The total planned overhead costs for next year=$3,500,000+$870,000=$ 4,370,000.00
machine hours as overhead allocation base is 92,000 hours
company's plantwide overhead rate =total planned overhead/overhead allocation base(machine hours)
company's plantwide overhead rate=4,370,000.00/92000=$47.5
Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Baldwin to pull the product Bat entirely off the market this year. Assume Baldwin scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Baldwin or other companies. Without Baldwin's product Bat how much can the industry currently produce in the Core segment
Answer:
11550
Explanation:
The computation of industry current produced in the core segment is shown below:
As there are five companies in the core segment i.e Abby, Brat, Bat, Cent , and Clack
First, we have to compute the total production capacity which is
Companies Primary Segment Capacity Next Round
Abby Core 2150
Brat Core 1250
Bat Core 1500
Cent Core 1098
Clack Core 1027
Total Capacity 7025
Now
segment without Brat.
So,
Production Capacity
= 7025 - 1250
= 5775
Moreover, the company work in two shifts
So, the production capacity is
= 5775 × 2
= 11550
The Titan retires a $24.6 million bond issue when the carrying value of the bonds is $22.2 million, but the market value of the bonds is $28.3 million. The entry to record the retirement will include: Multiple Choice A credit to cash for $22.2 million. A credit of $6.1 million to a gain account. A debit of $6.1 million to a loss account. No gain or loss on retirement.
Answer:
A debit of $6.1 million to a loss account
Explanation:
The answer is A debit of $6.1 million to a loss account.
To calculate this:
the carrying value of the bonds $22.2 million is subtracted from the market value of the bonds $28.3 million.
Carrying value, $22.2 million, less cash paid to retire the bonds of $28.3 million
= $28.3 - $22.2
= $6.1 million to a loss account.
On October 10, a company paid $36,000 to a supplier. Of that amount, $6,000 was for supplies received on October 10 and $30,000 was for supplies that were purchased on account during September. The journal entry to record the $36,000 payment would include a debit to:
Answer:
Debit to :
Supplies Inventory $6,000
Trade Payable $30,000
Explanation:
Here the $6,000 payment will increase the Assets of Supplies Inventories and decrease the Assets of Cash. The $30,000 payment will decrease the Liability - Trade Payable and decrease the Assets of Cash.
The Journal is provided as follows :
Supplies Inventory $6,000 (debit)
Trade Payable $30,000 (debit)
Cash $36,000 (credit)
On November 1, Bahama National Bank lends $3.8 million and accepts a six-month, 6% note receivable. Interest is due at maturity. Record the acceptance of the note and the appropriate adjustment for interest revenue at December 31, the end of the reporting period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)
Answer and Explanation:
The journal entries are shown below:
a. Note receivable Dr $3,800,000
To Cash $3,800,000
(Being the acceptance of the note is recorded)
For recording this we debited the note receivable as it increased the assets and credited the cash as it decreased the liabilities
b. Interest receivable Dr $38,000
To Interest revenue $38,000
(Being the interest revenue is recorded)
For recording this we debited the interest receivable as it increased the assets and credited the interest revenue as it increased the revenue
The computation is shown below:
= $3,800,000 × 6% × 2 months ÷ 12 months
= $38,000
,
Cash Payback Period, Net Present Value Method, and Analysis
Elite Apparel Inc. is considering two investment projects.
The estimated net cash flows from each project are as follows:
Year Plant Expansion Retail Store Expansion
1 $450,000 $500,000
2 450,000 400,000
3 340,000 350,000
4 280,000 250,000
5 180,000 200,000
Total $1,700,000 $1,700,000
Each project requires an investment of $900,000.
A rate of 15% has been selected for the net present value analysis.
Required:
1. Compute the cash payback period for each project.
2. Compute the net present value for each project.
(Round to nearest dollar)
Answer:
Plant Expansion
Cash payback period = 2 years
NPV = $304,707.24
Retail Store Expansion
Cash payback period = 2 years
NPV = $309,744.42
Explanation:
Cash payback period measures how long it takes for the amount invested in a project to be recovered from the cumulative cash flows.
Cash payback for the Plant Expansion
Amount invested = $-900,000
Amount recovered in the first year = $-900,000 + $450,000 = $-450,000
Amount recovered in the second year = $-450,000 + $450,000 = 0
The amount invested in the project is recovered In the second year. So, the cash payback period is 2 years.
Cash payback for the Retail Store Expansion
Amount invested = $-900,000
Amount recovered in the first year = $-900,000 + $500,000 = $-400,000
Amount recovered in the second year = $-400,000 + $400,000 = 0
The amount invested in the project is recovered In the second year. So, the cash payback period is 2 years.
The net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator:
Plant Expansion
Cash flow in year 0 = $-900,000
Cash flow in year 1 = $450,000
Cash flow in year 2 = $450,000
Cash flow in year 3 = $340,000
Cash flow in year 4 = $280,000
Cash flow in year 5 = $180,000
I = 15%
NPV = $304,707.24
Retail Store Expansion
Cash flow in year 0 = $-900,000
Cash flow in year 1 = $500,000
Cash flow in year 2 = $400,000
Cash flow in year 3 = $350,000
Cash flow in year 4 = $250,000
Cash flow in year 5 = $200,000
I = 15%
NPV = $309,744.42
To find the NPV using a financial calacutor:
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
I hope my answer helps you
Spicewood Stables, Inc. was established in Dripping Springs, Texas, on April 1. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the new Assistant Controller. The following transactions for April are provided for your review.1. Received contributions from investors and issued $330,000 of common stock on April 1.2. Built a barn and other buildings for $165,000. On April 2, the company paid half the amount in cash on April 1 and signed a three-year note payable for the balance.3. Provided $24,900 in animal care services for customers on April 3, all on credit.4. Rented stables to customers who cared for their own animals; received cash of $11,500 on April 4.5. On April 5, received $3,900 cash from a customer to board her horse in May, June, and July (record as Unearned Revenue).6. Purchased hay and feed supplies on account on April 6 for $4,700.7. Paid $2,860 on accounts payable on April 7 for previous purchases.8. Received $1,240 from customers on April 8 on accounts receivable.9. On April 9, prepaid a two-year insurance policy for $5,700. for coverage starting in May.10. On April 28, paid $960 in cash for water utilities incurred in the month.11. Paid $15,800 in wages on April 29 for work done this month.12. Received an electric utility bill on April 30 for $1,940 for usage in April; the bill will be paid next month.1. Prepare the journal entry for each of the above transactions.
Answer:
1. Received contributions from investors and issued $330,000 of common stock on April 1.
Dr Cash 330,000
Cr Common stock 330,000
2. Built a barn and other buildings for $165,000. On April 2, the company paid half the amount in cash on April 1 and signed a three-year note payable for the balance.
Dr Barn and Buildings 165,000
Cr Cash 82,500
Cr Notes payable 82,500
3. Provided $24,900 in animal care services for customers on April 3, all on credit.
Dr Accounts receivable 24,900
Cr Service revenue 24,900
4. Rented stables to customers who cared for their own animals; received cash of $11,500 on April 4.
Dr Cash 11,500
Cr Rent revenue 11,500
5. On April 5, received $3,900 cash from a customer to board her horse in May, June, and July (record as Unearned Revenue).
Dr Cash 3,900
Cr Unearned revenue 3,900
6. Purchased hay and feed supplies on account on April 6 for $4,700.
Dr Supplies 4,700
Cr Accounts payable 4,700
7. Paid $2,860 on accounts payable on April 7 for previous purchases.
Dr Accounts payable 2,860
Cr Cash 2,860
8. Received $1,240 from customers on April 8 on accounts receivable.
Dr Cash 1,240
Cr Accounts receivable 1,240
9. On April 9, prepaid a two-year insurance policy for $5,700. for coverage starting in May.
Dr Prepaid insurance 5,700
Cr Cash 5,700
10. On April 28, paid $960 in cash for water utilities incurred in the month.
Dr Utilities expense 960
Cr Cash 960
11. Paid $15,800 in wages on April 29 for work done this month.
Dr Wages expense 15,800
Cr Cash 15,800
12. Received an electric utility bill on April 30 for $1,940 for usage in April; the bill will be paid next month.
Dr Utilities expense 1,940
Cr Accounts payable 1,940
A Journal entry is a systematic record of the transactions with the debit and credit columns, and it helps in identifying the transactions of a particular business in various heads and Accounting procedure starts from the journal entries.
Refer to the image given below for journal entries of the given transactions.
Various types of journal entries are:Purchase of goodsSale of goodsPayment of wagesPayment of insurance premiumReceiving of cashBad debts occurred, etc.Learn more about journal entries, refer:
https://brainly.com/question/17439126
Our company is growing fast, which always means changes and innovations. Because of this growth, the accounting department will be restructured. For the last five years, Paolo has served as chief manager with grace and dedication. However, because of the restructuring, Paolo’s position will no longer be needed. He will be working in the marketing department on the third floor, starting next Tuesday.In this message, the organizational pattern is used.Outlines give you a chance to organize your thinking before determining word choice and sentence structure. Which of the following will help you create a more effective outline?Avoid illustrations when supporting subpointsCombine subpoints whenever possiblePut the main idea in the titleUse one subpoint per main ideaUse evidence to support subpointsInclude 3 to 5 major components
Complete question
(1) ...In this message, the___organizatipn pattern is used.
(2) Which of the following will help youcreate a more effective outline?Check all that apply.
a) Put the main idea in the title,
b) Use one sub-point per main idea,
c) Use evidence to support sub-points,
d) Include 3 to 5 major components,
e) Combine subpoints whenever possible,
f) Avoid illustrations when supporting subpoints
Answer:
1. indirect organizational pattern
2. a, c, d
Explanation:
1. Since the nagative information was placed at the end of the message it follows an Indirect message pattern inorder to minimise negative feelings by the listeners.
2. A more effective outline is created when the main idea of the message is placed in the title, while also using supporting evidence to discuss the sub-points. And finally limiting the use of illustrations when supporting subpoints.
1) Define the external business environment of Jessops Group Limited.
Answer:
The external business environment of Jess-op Group Limited are factors such as economic, technological, regulatory, social etc. factors which the company does not have control over but affect the operation of the company.
Explanation:
The company has to adapt to its external business environment in order to continue to be successful.
Note: See the attached Microsoft word file for the full explanation. There is a difficulty in submitting everything here.
Artville is deciding whether to purchase a new statue for the center of town. The statue will cost the city $17,000 and will only be purchased if the costs are covered. The city is asking for households to help cover the cost of the statue, but households are not forced to contribute.
Required:
a. If households are asked to contribute $5 each to help cover the cost of the statue, how many households will need to contribute?
b. If the population of Artville is 4,000 households, of which 3,000 households are expected to free ride, will the city be able to afford the statue if it charges each household $14?
Answer: a. $3,400 households
b. No.
Explanation:
a. The cost of the statue is $17,000 and each household is asked to contribute $5 to help cover the cost. To find out how many families one can divide the amount needed by the amount asked of the households,
= 17,000/5
= 3,400 households
If 3,400 households each pay $5 then the town of Artville will be able to afford the statue.
b. This question speaks to a social problem referred to a the Free-rider problem. This is when people in society benefit from something without contributing fairly towards the benefit they are accruing from the thing. 3,000 households out of 4,000 are expected to be free-riders. This means that only 1,000 will cover the cost of the statue.
If those 1,000 households pay the $14 required, the town would only raise,
= 1,000 * 14
=$14,000
$14,000 is less than the cost of the statue which is $17,000 and so the town of Artville will have to do without a statue as they simply cannot afford one.
