Answer:
a. 480
Explanation:
The computation of the economic order quantity is given below:
[tex]EOQ = \sqrt{\frac{2\times annual \ demand \times ordering\ cost }{carrying \ cost}} \\\\= \sqrt{\frac{2\times 3600\times \$32}{\$1} }[/tex]
= 480 units
The carrying cost could be determined below:
= $4 × 25%
= $1
hence, the carrying cost is $1
Therefore the economic order quantity is 480
Thus, the correct option is a.
Looking through pages to find information that you have already identified is know as:
A) scanning
B) skimming
C) integration
D)previewing
A.
because as you're passing the page you are scanning it and looking for the answer
Answer: scanning
Explanation: i said so
Navi-devices Inc., a manufacturer of portable navigation devices, provides free traffic updates and identifies the nearest parking spaces available with its latest device. It accomplishes this by using GPS coordinates of subscribers and traffic data from radio stations. Which of the following is the most likely impact of this strategy?
a. It will improve the company's operations management.
b It will improve their customer relationship management.
c. It will lower their total revenue.
d. It will provide the company with a competitive advantage.
Answer:
Navi-devices Inc.
The most likely impact of this strategy is:
d. It will provide the company with a competitive advantage.
Explanation:
The strategy of "providing free traffic updates and identifying the nearest parking spaces for its subscribers" will greatly benefit the company's customers. These free services lower the cost for customers and provide an advantage for the company to reach out to more loyal subscribers for its portable navigation devices. However, competitive advantages are not everlasting. They can easily be copied by competitors. This will level the advantage to zero. This implies that Navi-devices must innovate to remain competitive.
Which of the following factors is likely to have a positive impact on the success of a TQM program? Check all that apply. Employees work at tasks that require high skills. Continuous improvement becomes a way of life. Managers expect to see dramatic innovations as a result of TQM. Employees use participation and teamwork to tackle significant problems.
The factors that will have positive impact on the success of a TQM program includes when:
Employees work at tasks that require high skillsTQM motivates employees and enriches jobs.What is a TQM program?This means a total quality management program and are asopted by management to achieve a long-term success through a consistent customer satisfaction.
When an employees work at tasks that require high skills and the program motivates employees and enriches jobs, this are factors that will impact positively on the success of a TQM program
Therefore, the Option A and D is correct.
Read more about TQM program
brainly.com/question/13606942
You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $94,000. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,350 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 3.2 percent. What will be the amount of the balloon payment six years from now
Answer:
Purchase of Tesla Model X Sport Utility Vehicle
The amount of the balloon payment six years from now is:
= $39,322.67.
Explanation:
a) Data and Calculations:
Cost of vehicle = $94,000
Period of loan = 6 years
Terms: No down payment and no monthly payments during the first year.
Monthly payment after the first year = $1,350
Total payments to be made = $104,122.67
The total payments including interest from an online financial calculator:
Payoff: 6 years 5.13 months
You will need to pay $1,350.00 every month for 6 years 5.13 months to payoff the debt.
Monthly Payment $1,350.00
Time Required to Clear Debt 6.43 years
Total of 77.13 Payments $104,122.67
Total Interest $10,122.67
Total monthly payments from second year to fifth year = $64,800 ($1,350 * 48)
Expected balloon payment to cover the remaining principal = $39,322.67 ($1014,122.67 - $64,800)
Johnny Cake Ltd. has 30 million shares of stock outstanding selling at $40 per share and an issue of $40 million in 8 percent, annual coupon bonds with a maturity of 13 years, selling at 96.5 percent of par ($1,000). If Johnny Cake's weighted average tax rate is 33 percent, its next dividend is expected to be $4.00 per share, and all future dividends are expected to grow at 7 percent per year, indefinitely, what is its WACC
Answer:
WACC = 0.16637 OR 16.637%
Explanation:
WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm with only debt and common equity can be calculated as follows,
WACC = wD * rD * (1-tax rate) + wE * rE
Where,
w represents the weight of each component based on market value in the capital structurer represents the cost of each componentD and E represents debt and equity respectivelyTo calculate WACC, we first need to calculate the Market value an cost of equity.
The market value of equity = 30 million shares * $40 per share
MV of equity = $1200 million
The cost of equity can be found using the formula for Price today (P0) under constant growth model of DDM.
P0 = D1 / (r - g)
40 = 4 / (r - 0.07)
40 * (r - 0.07) = 4
40r - 2.8 = 4
40r = 4+2.8
r = 6.8 / 40
r = 0.17 or 17%
MV of debt = 40 million * 96.5% => $38.6 million
Total MV of capital structure = 38.6 + 1200 = 1238.6 million
WACC = 38.6/1238.6 * 0.08 * (1-0.33) + 1200/1238.6 * 0.17
WACC = 0.16637 OR 16.637%
When you seek to define an issue, you should try to frame it in positive terms.
Please select the best answer from the choices provided
T or F
The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July:
Cash balance according to the company's records at July 31, $18,410.
Cash balance according to the bank statement at July 31, $19,540.
Checks outstanding, $3,740.
Deposit in transit, not recorded by bank, $3,000.
A check for $270 issued in payment of an account was erroneously recorded in the check register as $720. Bank debit memo for service charges, $60.
A. Prepare a bank reconciliation.
B. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash?
Answer:
Part A
Nakajima Co
Bank reconciliation as at July 31
Balance as per Bank Statement $19,540
Add Outstanding Lodgments $3,000
Less Unpresented Checks ($3,740)
Balance as per Cash Book $18,800
Part B
Amount to be reported as cash is $18,800
Explanation:
A Bank reconciliation statement is used to check the accuracy of the Cash Book balance.
The Updated Cash Book after the items that are in Bank Statement but not in Cash Book must always show the same amount as with the Bank Reconciliation Statement.
Sage Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2020, at an agreed price of $367,600. At December 31, 2020, the raw material had declined in price to $334,840. What entry would you make on December 31, 2020, to recognize these facts
Answer:
Dr Unrealized Holding $32,760
Cr Estimated Liabilities $32,760
Explanation:
Preparation of What entry would you make on December 31, 2020, to recognize these facts
Based on the information given the Joi entry you would make on December 31, 2020, to recognize these facts will be :
December 31, 2020
Dr Unrealized Holding $32,760
Cr Estimated Liabilities $32,760
($367,600-$334,840)
Hsu Company manufactures two products (A and B) from a joint process that cost $200,000 for the year just ended. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Further information follows. If Processed Further Product Pounds Produced Per-Pound Sales Price Sales Value Separable Cost A 20,000 $ 12 $ 350,000 $ 90,000 B 30,000 8 300,000 60,000 If the joint costs are allocated based on the net-realizable-value method, the amount of joint cost assigned to product A would be:
Answer:
$80,000
Explanation:
Calculation to determine the amount of joint cost assigned to product A would be:
Joint cost assigned to product A =20,000 ÷(20,000 + 30,000)] x $200,000
Joint cost assigned to product A = $80,000
Therefore The the amount of joint cost assigned to product A would be:$80,00
Rearden Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Rearden Metal is thinking of buying Associated Steel, which has earnings per share of $1.25, 4 million shares outstanding, and a price per share of $15. Rearden Metal will pay for Associated Steel by issuing new shares. There are no expected synergies from the transaction. If Rearden offers an exchange ratio such that, at current pre-announcement share prices for both firms, the offer represents a 20% premium to buy Associated Steel, then the price per share of the Rearden immediately after the announcement will be closest to:
Answer: $19.12
Explanation:
The price per share of the Rearden immediately after the announcement will be calculated as the addition of the current prices for the companies divided by the total number of shares after merger. This will be:
= (20 × 10) + (15 × 4) / (10 + 3.6)
= (200 + 60) / 13.6
= 260 / 13.6
= 19.12
The price per share is $19.12
A tire manufacturer has three different models that it sells. The anticipated payoff is dependent on the type sold and the level of demand.
Scenarios
Alternatives Low demand Medium demand High demand
All season $227,656 $365,000 $170,000
All terrain $260,470 $425,000 $400,000
Winter $-183,404 $238,000 $790,000
Probability 0.35 0.40 0.25
Requied:
What is the EMV for the all season tires?
Answer:
The EMV for the all season tires is:
= $268,180.
Explanation:
a) Data and Calculations:
Scenarios
Alternatives Low demand Medium demand High demand
All season $227,656 $365,000 $170,000
All terrain $260,470 $425,000 $400,000
Winter $-183,404 $238,000 $790,000
Probability 0.35 0.40 0.25
EMV for All Season Tires:
Scenarios Payoff Probability Expected Value
Low demand $227,656 0.35 $79,680
Medium demand $365,000 0.40 146,000
High demand $170,000 0.25 42,500
Total EMV = $268,180
Bailey Furniture Company has prepared the following flexible budget for April and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Flexible Budget Price Variance Efficiency Variance Material A $50,000 $2,600 F $4,200 U Material B $78,000 $1,500 U $2,900 F Direct manufacturing labor $95,000 $1,200 U $3,700 F The most likely explanation of the above direct manufacturing labor variances is that
Answer:
See notes below
Explanation:
Rate variance
The rate variance is the the difference between the standard labor cost of the actual hours paid for and the actual cost.
Possible reasons:
An increase in wage rate
Skilled workers were as against using the unskilled workers planned for
Efficiency variance
Labour efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours allowed for same multiplied by the standard labour rate
Possible reasons:
The use of skilled workers who worked faster than the unskilled workers planed for
The workers were trained making them more efficient in saving time
List six daily activities you perform. They might include preparing homework assignments, shopping and other activities. Ensure that three of the activities call for decision making that is unstructured(or semi-structured) and three involve structured decision making. Prepare a report explaining what decision making is required and why the decision making is unstructured or structured
Answer:
Work, School, Making dinner, Driving, Choosing music, Doing homework
Explanation:
Department B had 3,000 units in Work in Process that were 25% completed at the beginning of the period at a cost of $12,500. 13,700 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 1,700 units were 95% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450, and factory overhead was $18,710. The number of equivalent units of production for the period for materials if the first-in, first-out method is used to cost inventories was a.13,700
Answer:
Number of equivalent units= 13,700
Explanation:
All materials are added at the beginning of the process.
To calculate the equivalent units using the FIFO method, we need to use the following structure:
Beginning work in process = beginning inventory* %incompleted
Units started and completed = units completed - beginning WIP
Ending work in process completed= Ending WIP* %completed
=Number of equivalent units
Replacing:
Beginning work in process = 3,000*0%= 0
Units started and completed = 15,000 - 3,000= 12,000
Ending work in process completed= 1,700*100%= 1,700
Number of equivalent units= 13,700
When you use the Redo command, you redo the action that was just completed.
a. True
b. False
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.46 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2,000,000 in annual sales, with costs of $711,000. The project requires an initial investment in net working capital of $220,000, and the fixed asset will have a market value of $300,000 at the end of the project.
1. If the tax rate is 35 percent, what is the project's Year 0 net cash flow?
2. If the required return is 16%, what is the project's NPV?
Answer:
1) initial outlay = $2,460,000 + $220,000 = $2,680,000
2)
depreciation expense year 1 = $819,918
depreciation expense year 2 = $1,093,470
depreciation expense year 2 = $364,326
book value at end of year 3 = $182,286
net cash flow year 1 = [($2,000,000 - $711,000 - $819,918) x 0.65] + $819,918 = $1,124,821.30
net cash flow year 2 = [($2,000,000 - $711,000 - $1,093,470) x 0.65] + $1,093,470 = $1,220,564.50
net cash flow year 3 = [($2,000,000 - $711,000 - $364,326) x 0.65] + $364,326 = $965,364.10
terminal value (year 3) = [($182,286 - $300,000) x .65] + $220,000 = $143,485.90
NPV = -$92,854.95
On January 1, Year 1, the Charleston Company (Charleston) issues bonds with a face value of $100,000 and a stated annual cash interest rate of 6% for $86,410 in cash to yield an assumed effective interest rate of 8%. Interest is paid every June 30th and December 31st, and the effective-rate method is being applied. What amount of interest expense should Charleston report for the year ending December 31, Year 2
Answer:
$7,007
Explanation:
Amount of payment = $100,000 * 3%
Amount of payment = $3,000
Interest expenses = Carrying amount * 4%
Amortization of discount = Amount of payment - Interest expenses
Carrying value = Previous carrying value + Current Amortization of discount
Year Amount of Interest Amortization Carrying
payment Expenses of discount value
Jan 1, Y1 $86,410
Jun 30, Y1 $3,000 $3,456 $456 $86,866
Dec 31, Y1 $3,000 $3,475 $475 $87,341
Jun 30, Y2 $3,000 $3,494 $494 $87,835
Dec 31, Y2 $3,000 $3,513 $513 $88,348
Interest expense for December 31, Year 2 = $3,494 + $3,513 = $7,007. So, $7,007 is the amount of interest expense should Charleston report for the year ending December 31, Year 2.
11. ABC Co. leased a portion of its store to another company for eight months beginning on October 1, 2004. This other company paid the entire rent of $6,400 cash on October 1, which ABC Co. recorded as unearned revenue. The journal entry made by ABC Co. at year- end on December 31, 2004 would include: A) A debit to Rent Earned for $2,400. B) A credit to Unearned Rent for $2,400. C) A debit to Cash for $6,400. D) A credit to Rent Earned for $2,400. E) A debit to Unearned Rent for $4,000.
Answer and Explanation:
The journal entry is shown below:
Unearned revenue Dr ($6,400 × 3 months ÷ 8 months) $2,400
To revenue $2,400
(Being unearned revenue is recorded)
Here the unearned revenue is debited as it decreased the liabilities and revenue is credited as it increased the revenue
The same would be relevant
A popular, local coffeeshop in one of the suburbs of New York City (NYC) estimates they use 3,100 pounds of coffee annually. They have to determine how many pounds to order each time in order to minimize their total annual cost. a. Determine the optimal size of the order assuming an EOQ model with a holding cost of $10 per pound annually and an ordering cost of $100.
Answer:
Economic order quantity (EOQ)= 249 pounds
Explanation:
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
D= 3,100
S= $100
H= $10
Economic order quantity (EOQ)= √[(2*3,100*100) / 10]
Economic order quantity (EOQ)= 249 pounds
The following information relates to the only product sold by Mastrolia Manufacturing. Sales price per unit $ 45 Variable cost per unit 27 Fixed costs per year 252,000 a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).
Answer:
a. 40 % and $630,000
b. $ 270,000
Explanation:
The contribution margin ratio = Contribution ÷ Sales
The dollar sales volume required to break even = Fixed Cost ÷ contribution margin ratio
the margin of safety (in dollars) - company sells 20,000 units = Expected Sales - Break even Sales
On December 31, 2009, Beam, Inc., borrowed $650,000 on an 8%, 10-year mortgage note payable. The note is to be repaid in equal quarterly installments of $23,761 (beginning March 31, 2010). Prepare journal entries to reflect (a) the issuance of the mortgage note payable, (b) the payment of the first installment on March 31, 2010, and (c) the payment of the second installment on June 30, 2010. Round amounts to the nearest dollar.
Answer:
Part a
Date - December 31, 2009
Debit : Cash $650,000
Credit : Mortgage note payable $650,000
Part b
Date - March 31, 2010
Debit : Mortgage note payable $10,761.00
Debit : Interest expense $13,000.00
Credit : Cash $23,761.00
Part c
Date - June 30, 2010
Debit : Mortgage note payable $10,976.22
Debit : Interest expense $12,784.78
Credit : Cash $23,761.00
Explanation:
At inception the Mortgage is initially measured at Fair Value, that is at the amount given by the Lender.
Mortgage payments would then include interest payments and capital repayments.
Preparing an amortization schedule would give us all the details required for this Mortgage.
Using a financial calculator, first set the data as follows :
PV = $650,000
I = 8%
P/YR = 4
N = 10 x 4 = 40
PMT = - $23,761
FV = $0
Then, prepare the amortization schedule for the mortgage note payable.
Date Capital Repayment Interest Payment Balance
Dec 31 - 09 $ 0 $ 0 $650,000.00
Mar 31 - 10 $10,761.00 $13,000.00 $639,239.00
June 30 - 10 $10,976.22 $12,784.78 $628,262.78
. It is important to conserve fossil fuels because
Answer:
Non-renewable resources (energy).
Explanation:
Renewable energy is also known as clean energy and it can be defined as a type of energy that are generated through natural sources or technology-based processes that are replenished constantly. Some examples of these natural sources are water (hydropower), wind (wind energy), sun (solar power), geothermal, biomass, waves etc.
Basically, a renewable energy source is sustainable and as such can not be exhausted.
On the other hand, a non-renewable energy refers to an energy source such as fossil fuels that takes a very long time to be created or their creation happened long ago and isn't likely to happen again e.g uranium. Fossil fuels, such as coal, oil, and natural gas, come from deep inside the Earth where they formed over millions of years ago.
Hence, it is very important to conserve fossil fuels because they are non-renewable resources (energy), unstainable and can be exhausted.
Borner Communications’ articles of incorporation authorized the issuance of 165 million common shares. The transactions described below effected changes in Borner’s outstanding shares. Prior to the transactions, Borner’s shareholders’ equity included the following:
Shareholders’ Equity ($ in millions)
Common stock, 150 million shares at $1 par $150
Paid-in capital – excess of par 450
Retained earnings 260
Required:
Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares). Record the appropriate journal entry for each of the following transactions:
On January 7, 2021, Borner reacquired 2 million shares at $6.50 per share.
On August 23, 2021, Borner reacquired 4 million shares at $3.00 per share.
On July 25, 2022, Borner sold 3 million common shares at $8 per share.
Answer:
1. January 07,2021
Dr Common stock $2 million
Dr Paid-in capital—excess of par
Dr Retained earnings $5 million
Cr Cash $13 million
2. August 23,2021
Dr Common stock $4million
Cr Paid-in capital—excess of par $12million
Dr Paid-in capital—share repurchase$4million
Cr Cash $12million
3. July 25, 2022
Dr Cash $24 million
Cr Common stock $3million
Cr Paid-in capital—excess of par $21 million
Explanation:
Preparation of the appropriate journal entry for each of the transaction
1. January 07,2021
Dr Common stock $2 million
(2 million shares *$1)
Dr Paid-in capital—excess of par
[2 million shares *($450/150 million shares)] $6 million
Dr Retained earnings $5 million
($13 million-$2 million-$6million)
Cr Cash $13 million
(2 million shares *$6.50 per share)
(To record 2 million shares reacquired at $6.50 per share)
2. August 23,2021
Dr Common stock $4million
(4 million shares *$1)
Cr Paid-in capital—excess of par $12million
[4 million shares *($450/150 million shares)
Dr Paid-in capital—share repurchase$4million
[($12million+$4million)-$12million)
Cr Cash $12million
(4 million shares * $3.00 per share)
(To record 4 million shares reacquired at $3.00 per share)
3. July 25, 2022
Dr Cash $24 million
(3 million common shares *$8 per share)
Cr Common stock $3million
(3 million shares *$1)
Cr Paid-in capital—excess of par $21 million
( $24 million-$3million)
(To record 3 million shares reacquired at $8.00 per share)
Terps Company pays its employees monthly. The payroll information listed below is for January 2021, the first month of the fiscal year. Assume none of the employees' earnings reached $7,000 during the month. Salaries $ 80,000 Federal income taxes to be withheld 16,000 Federal unemployment tax rate (FUTA) 0.80 % State unemployment tax rate (after FUTA deduction) 5.40 % Social security tax rate 6.2 % Medicare tax rate 1.45 % The journal entry to record payroll for the January 2021 pay period will include a debit to payroll tax expense of:
Answer: $11080
Explanation:
The payroll tax expense will be calculated thus:
Social security tax = $80000 × 6.2% = $4960
Add: Medicare tax = $80000 × 1.45% = $1160
Add: Federal unemployment tax = $80000 × 0.80% = $640
Add: State unemployment tax = $80000 × 5.40% = $4320
Payroll tax expense = $11080
The journal entry to record payroll for the January 2021 pay period will include a debit to payroll tax expense of $11080.
What was one result of the Bretton Woods system?
O A. The U.S. dollar was no longer accepted in most countries.
O B. The U.S. dollar became backed by gold for the first time.
O C. The U.S. dollar became more valuable and influential.
O D. The U.S. dollar lost its status as the world's reserve currency.
SUBMIT
PREVIOUS
Answer:
C. The U.S. dollar became more valuable and influential.
Explanation:
The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August.
Costs
Actual labor rate $15 per hour
Actual materials price $190 per ton
Standard labor rate $14.50 per hour
Standard materials price $193 per ton
Quantities
Actual hours incurred and used 4,600 hours
Actual quantity of materials purchased and used 1,700 tons
Standard hours used 4,650 hours
Standard quantity of materials used 1,680 tons
Required:
Compute the total, price, and quantity variances for materials and labor.
Answer:
Results are below.
Explanation:
To calculate the direct material price, quantity, and total variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (193 - 190)*1,700
Direct material price variance= $5,100 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (1,680 - 1,700)*193
Direct material quantity variance= $3,860 unfavorable
Total variance= Direct material price variance +/- Direct material quantity variance
Total variance= 5,100 - 3,860
Total variance= $1,240 favorable
To calculate the direct labor efficiency, rate, and total variance; we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (4,650 - 4,600)*14.5
Direct labor time (efficiency) variance= $725 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (14.5 - 15)*4,600
Direct labor rate variance= $2,300 unfavorable
Total variance= Direct labor time (efficiency) variance +/- Direct labor rate variance
Total variance= 725 - 2,300
Total variance= $1,575 unfavorable
The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,510,000 2,500 2,512,500 VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2021 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold $1,605,000 Operating expenses 606,000 Depreciation expense 24,000 Interest expense 25,000 Income tax expense 71,000 Total expenses Net income 2.331,000 $ 181,500 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 211,140 73,900 146,500 4,060 $ 154,980 89,000 136,000 6,220 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Interest payable Income tax payable Long-term Habilities Notes payable Stockholders' equity Common stock Retained earnings Total abilities and stockholders' equity 196.000 210,500 232,000 (229,500) $944,600 110,000 261,000 211,000 (205,500 $ 862,600 30,500 1,200 21,400 $ 89,000 3,100 24,500 226,000 247,000 361,000 280.500 310,000 210.000 $862.600 Additional Information for 2021: 1. Purchase additional investment in stocks for $86,000 2. Sell land costing $50,500 for $53,000, resulting in a $2,500 gain on sale of land. 3. Purchase $21,000 in equipment by issuing a $21.000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of 5111,000. 5. Issue common stock for $51.000.
Required: Prepare the statement of cash flows for Virtual Gaming Systems using the direct method.
Answer:
Net Increase in cash = $56,160
Explanation:
Note: The data in this question are merged together, but see the attached pdf file for how the full question actually appear.
Note: See the attached excel file for the statement of cash flows for Virtual Gaming Systems using the direct method.
From the attached excel file, we have:
Net cash from operating activities = $149,160
Net cash from investing activities = -$33,000
Net cash from financing activities = -$60,000
Net Increase in cash = $149,160 - $33,000 - $60,000 = $56,160
Calculating Lower-of-Cost-or-Net Realizable Value
Anne Traylor Inc. has the following information for its six inventory items on June 30, 2020. Determine the inventory cost to report on the balance sheet on June 30, 2020, assuming that the company applies the lower-of-cost-or-net realizable value rule to each individual inventory item.
Inventory Item Quantity Selling Price Cost to Sell Inventory Cost Lower-of-Cost-or-
Net Realizable Value
#100 70 $24 $5 $16
#101 100 22 4 17
#115 50 35 6 31
#118 120 40 6 29
#120 25 18 4 10
#128 45 30 8 26
Total
Answer:
Anne Traylor Inc.
Calculating Lower-of-Cost-or-Net Realizable Value
The inventory cost to report on the balance sheet on June 30, 2020, assuming that the company applies the lower-of-cost-or-net realizable value rule to each individual inventory item is:
= $8,990.
Explanation:
a) Data and Calculations:
Inventory Quantity Selling Cost NRV Inventory Lower-of-Cost-or-
Item Price to Sell Cost Net Realizable Value
#100 70 $24 $5 $19 $16 $1,120 ($16 * 70)
#101 100 22 4 18 17 1,700 ($17 * 100)
#115 50 35 6 29 31 1,450 ($29 * 50)
#118 120 40 6 35 29 3,480 ($29 * 120)
#120 25 18 4 14 10 250 ($10 * 25)
#128 45 30 8 22 26 990 ($22 * 45)
Total $8,990
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.
The second department (Polishing) had the following physical flow schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started ?
Total units to account for ?
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed ?
Units accounted for ?
Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.
Required:
Assuming the use of the weighted average method, prepare a schedule of equivalent units. Enter percentages as whole numbers.
Answer:
Fordman Company
A Schedule of Equivalent Units (Weighted-Average Method)
Equivalent units of production:
Units Direct Materials Conversion
Units completed 16,000 16,000 16,000
Ending WIP 8,000 4,000 4,000
Total equivalent units 20,000 20,000
Explanation:
a) Data and Calculations:
Units transferred from Grinding Department = 20,000
Cost of units transferred = $40,000
Polishing Department's
Physical Flow Schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started 20,000
Total units to account for 24,000
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed 16,000 (100% complete)
Units accounted for 24,000
Cost of production:
Direct Conversion Transferred Total
Materials In
Beginning work in process $5,000 $6,000 $8,000 $19,000
Current period 32,000 50,000 40,000 122,000
Total costs of production $37,000 $56,000 $48,000 $141,000
Equivalent units of production:
Units Direct Materials Conversion
Units completed 16,000 16,000 16,000
Ending WIP 8,000 4,000 4,000
Total equivalent units 20,000 20,000
Cost per equivalent units:
Direct Materials Conversion Total
& Transferred In
Total costs of production $85,000 $56,000
Total equivalent units 20,000 20,000
Cost per equivalent units $4.25 $2.80
The common stock of the P.U.T.T. Corporation has been trading in a narrow price range for the past month, and you are convinced it is going to break far out of that range in the next three months. You do not know whether it will go up or down, however. The current price of the stock is $100 per share, and the price of a 3-month call option at an exercise price of $100 is $10.
Required:
a. If the risk-free interest rate is 5% per year, what must be the price of a 3-month put option on P.U.T.T. stock at an exercise price of $140?
b. What would be a simple options strategy to exploit your conviction about the stock price?
Answer:
A. $7.65
B. $ 17.65
$ 18.07
Explanation:
A. Calculation to determine the price of a 3-month put option on P.U.T.T. stock at an exercise price of $100
Using this formula
P = C-S+[X/(1+r)T]
Let plug in the formula
P = 10-100+[100/(1+0.10)1/4]
P = 10-100+[100/(1.10)1/4]
P = 10-100+[100/1.0241]
P = 10-100+97.65
P = 10-2.35
P = $7.65
Therefore the price of a 3-month put option on P.U.T.T. stock at an exercise price of $100 will be $7.65
B. Calculation for the Stock price future movements
Total cost of straddle option = $10+$ 7.65
Total cost of straddle option= $ 17.65
Therefore Stock price future movements is $ 17.65
Calculation to determine the profit on your initial investment
Profit=$ 17.65*(1.10)^1/4
Profit=$ 17.65*1.0241
Profit= $ 18.07
Therefore the profit on your initial investment will be $ 18.07
