Answer:
Acid-test ratio
Explanation:
Acid-test ratio I finance can also be regarded as quick ratio, it gives the measurement of how an organization can utilize her quick asset as well as cash to settle her liabilities at at that current period.
It can be calculated theoretically using this expresion;
Quick ratio= (Current Asset- Inventory)/Current Liabilities
It should be noted that acid-test ratio gives The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities. It enables to know shot term liquidity of a particular company.
Paula has sales that qualify to be reported on the installment basis. In year 2, installment sales were $40,000 with a cost of $30,000. In year 3, installment sales were $50,000 with a cost of $25,000. Collections in year 2 were in the amount of $30,000. Collections in year 3 were $10,000 on the year 2 sales and $30,000 on the year 3 sales. How much deferred gross profit exists as of the end of year 2
Answer: $2500
Explanation:
Gross profit is gotten when costs are subtracted from sales. Deferred gross profit is the cash that hasn't been gotten by a business.
The percentage on gross profit percentage will be calculated as:
= ($40000-$30000)/$40000 × 100
= $10,000/$40,000 × 100
= 0.25 × 100
= 25%
Deffered gross profit will now be calculated by multiplying the gross profit percentage by the cash to be cash to be collected. This will be:
=$10000 × 25%
= $2500
The deferred gross profit that exists as of the end of year 2 is $2500
Hlleym762 Inc. is a merchandising company. Last month the company's cost of goods sold was $62,600. The company's beginning merchandise inventory was $16,600 and its ending merchandise inventory was $25,200. What was the total amount of the company's merchandise purchases for the month?
Answer:
Purchases = $71200
Explanation:
Using the Cost of Goods Section from the Income statement, we can calculate the Purchases of merchandise for the month. The cost of Goods sold is calculated as follows,
Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory
As we already have values for Cost of Goods Sold, Opening inventory and closing inventory, we can plug the values in the above formula to calculate the value of purchases.
62600 = 16600 + Purchases - 25200
62600 + 25200 - 16600 = Purchases
Purchases = $71200
Mickler Productions uses process costing. Its Mixing Department incurred conversion costs of $650,820 during January, and had a beginning Work in Process inventory of $30,430 for conversion costs. 54,000 units were transferred out of the department, and the ending inventory consisted of 2,500 units that are 20% complete with respect to conversion costs. What is the conversion cost per equivalent unit during January? $12.05 $12.62 $12.17 $12.50
Answer:
$12.50
Explanation:
Calculation of Equivalent units of production with respect to conversion costs
Ending Work In Process (2,500 × 20%) 500
Completed and Transferred Out (54,000 × 100%) 54,000
Equivalent units of production with respect to conversion costs 54,500
Calculation of the conversion cost per equivalent unit
cost per equivalent unit = Total Cost ÷ Total Equivalent Units
= ($30,430 + $650,820) ÷ 54,500
= $12.50
On May 1, 2019, Mary Smith signed a promissory note with Continental Bank. The note is due in one year with % interest. What journal entry should Continental Bank prepare on May 1, 2019?
a. Debit Cash for $10,000 and credit Notes Payable for $10,000.
b. Debit Notes Receivable for $10,700 and credit Cash for $10,700.
c. Debit Notes Receivable for $10,000 and credit Cash for $10,000.
d. Debit Cash for $10,700 and credit Accounts Receivable for $10,700.
Answer: c. Debit Notes Receivable for $10,000 and credit Cash for $10,000
Explanation:
Here is the completed question:
On May 1, 2019, Mary Smith signed a $10,000 promissory note with Continental Bank. The note is due in one year with 7% interest. What journal entry should Continental Bank prepare on May 1, 2019?
The journal entry shows the transactions incurred by Mary Smith. It should be noted that a journal shows both the debit and credit side.
Based on the information in the question, the journal entry will be:
Debit Notes Receivable for $10,000 and credit Cash for $10,000
Therefore, option C is the correct answer.
Check the attachment for further detail.
What are Cartels? (1 pt.)
A cartel is a group of independent market participants who collude with each other in order to improve their profits and dominate the market. Cartels are usually associations in the same sphere of business, and thus an alliance of rivals.
West Side Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and $7.50. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 16 percent, what is the current share price?
a. $63.27.
b. $61.40.
c. $68.82.
d. $65.17.
e. $60.11.
Answer:
$77.81
Explanation:
We are given that West Side Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and $7.50.
Required rate - 16%
Growth rate = 6%
We are supposed to find the current share price
Formula :[tex]P_0=\sum_{t=0}^{T}\frac{D_T}{(1+r)^t}+\frac{D_{T+1}}{r-G}(1+r)^{-T}[/tex]
D = Dividends
t = time
r = required rate
G= Growth rate
Substitute the values in formula :
[tex]P_0=\frac{16}{(1+0.16)^1}+\frac{12}{(1+0.16)^2}+\frac{11}{(1+0.16)^3}+\frac{7.50}{(1+0.16)^4}+\frac{7.50(1+0.06)}{0.16-0.06}(1+0.16)^{-4}\\P_0=77.81\\[/tex]
A company is planning to move to a larger office and is trying to decide if the new office should be owned or leased. Cash flows for owning versus leasing are estimated as follows. Assume that the cash flows from operations will remain level over a 10 year holding period. If purchased, the company will invest $385,000 in equity and finance the remainder with an interest-only loan that has a balloon payment due in year 10. The after-tax cash flow from sale of the property at the end of year 10 is expected to be $750,000. What is the incremental rate of return on equity to the company, if the property is owned instead of leased
Answer: 13.26%
Explanation:
Year 0 Investment = $385,000
Incremental Cash flow every year = Cashflow if owned - Cashflow if leased
= 164,000 - 133,000
= $31,500
Incremental cashflow in Year 10 = Incremental Cashflow + Cashflow from sale of property
= 31,500 + 750,000
= $781,500
Using Excel and the IRR function, the rate is = 13.26%
Goal-Setting, Expectancy, Reinforcement, and Equity Theory
Goal-Setting, Expectancy, Reinforcement, and Equity Theories all serve Theory Y managers in understanding how employees can be motivated at work. Employees seek interesting and challenging work in a fair work environment that allows for autonomy. There should be a system to engage everyone in the organization in goal setting and implementation as well as an expectation that effort expended will result in a positive outcome and be balanced from one employee to another (given the same work). Managers can also find success in fairness and a reward system that all employees value.
Goal-setting theory is based on the premise that employees are motivated when they are clear about the goals they are working toward. More importantly, they are more likely to engage to attain these goals if they collaborate with management in planning. Management by Objectives (MBO) is the process of discussion, review, and evaluation of goals between a manager and employee. Expectancy theory is based on the premise that the amount of effort employees exert on a specific task depends on their expectations of the outcome. Reinforcement theory states that individuals act to receive rewards and avoid punishment. A manager may attempt to surface good behaviors through rewards and extinguish poor behaviors through punishment. Equity theory zeros in on how employees' perceptions of fairness affect their willingness to perform.
Roll over each employee name to read a scenario. Match the scenario with the respective theory on the left by dragging the employee name to the corresponding theory.
1. Nathaniel has been late so much this month that he was not put on the project he requested to lead.
2. Robert does not want to go into work on his day off because he does not really need the overtime pay and that is the only benefit his boss offered.
3. Angela will be offered the role of team leader if she prepares a year-end profit and loss statement in Excel for the department, but she has not been trained to use Excel.
4. Rebecca's manager gave her a gift card to her favorite restaurant for having the highest value of sales in her department last month.
5. Gwen was glad she could sit down with her boss and plan the best schedule to accomplish her goals and objectives for the first quarter of the year.
6. Ruth found of that Liz is getting paid more per hour for doing the same job! Ruth has been with the company longer and her output is higher.
7. Jason is meeting with his manager to review the list of goals they spelled out last month to see what he has accomplished so far.
8. Daniel gave up his day off to help is boss hoping he would be appointed team leader, but the position was awarded to a co-worker who never helps out on the weekends!
A. Goal-setting
B. Expectancy
C. Reinforcement
D. Equity
Answer:
Goal-Setting, Expectancy, Reinforcement, and Equity Theories
Matching the scenario with respective theories:
A. Goal-setting : Gwen, Jason
B. Expectancy : Robert, Daniel
C. Reinforcement : Angela, Rebecca
D. Equity : Nathaniel, Ruth
Explanation:
Below are summaries of the different theories that can "serve Theory Y managers in understanding how employees can be motivated at work:"
A. Goal-setting Theory = setting clear goals
B. Expectancy Theory = acting based on the expected outcome
C. Reinforcement Theory = acting based on rewards and punishment
D. Equity Theory = willing to perform is based on perceived fairness
Match the scenario:
Part A. Goal-setting: Gwen, Jason
Part B. Expectancy: Robert, Daniel
Part C. Reinforcement: Angela, Rebecca
Part D. Equity: Nathaniel, Ruth
What is Equity?
In finance, equity is the right of assets that may have debts or other liabilities connected to them. Equity is estimated for accounting purposes by subtracting liabilities from the importance of the assets.
Descending are summaries of the different approaches that can "serve Theory Y managers in understanding how employees can be motivated at work:"
When the Goal-Setting, Expectancy, Reinforcement, and also Equity Theories
When the Matching the scenario with respective theories are:
Part A. Goal-setting Theory is = setting clear goals
Part B. Expectancy Theory is = acting based on the expected outcome
Part C. Reinforcement Theory is = acting based on rewards and punishment
Part D. Equity Theory is = willing to perform is based on perceived fairness
Find more information about Equity here:
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Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,600 from sales $200,000, variable costs $175,000, and fixed costs $30,600. If the Big Bart line is eliminated, $19,600 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
Continue Eliminate N.I. Increase/(Decrease)
Sales $200,000 $0 ($200,000)
- Variable Costs $175,000 $0 $175,000
Contribution margin $25,000 $0 ($25,000)
- Fixed Cost $30,600 $19,600 $11,000
Net Income (Loss) ($5,600) ($19,600) ($14,000)
Conclusion: The production line should be Continued, because eliminating the production line would lead to a further Decrease in Net Income by $14,000,
Assume the appropriate discount rate for the following cash flows is 9.9 percent.
Year Cash Flow
1 $1,950
2 1,850
3 1,550
4 1,350
Required:
What is the present value of the cash flows?
Answer:
Total PV= $5,399.2
Explanation:
Giving the following information:
Year Cash Flow
1 $1,950
2 1,850
3 1,550
4 1,350
Discount rate= 9.9%
To calculate the present value, we need to use the following formula on each cash flow:
PV= Cf/(1+i)^n
PV1= 1,950/1.099= 1,774.34
PV2= 1,850/1.099^2= 1,531.71
PV3= 1,550/1.099^3= 1,167.72
PV4= 1,350/1.099^4= 925.43
Total PV= $5,399.2
Suppose, you own a screen-printing business and you enter into a contract with a local school to print 50 orange t-shirts with the school name and their mascot on the front. Each shirt costs $10. Before the shirts are delivered, the school breaches the contract. You are now stuck with 50 shirts you cannot resell because no one wants t-shirts with someone else's school name and mascot on the front. What amount can you sue for if you sue for damages
Answer: $500
Explanation:
Based on the scenario in the question, there's a breach of contract as the shirts aren't delivered and there are 50 t-shirts which cost $10 each that no one law is willing to buy because it has a school name and their mascot on the front.
Here, the maker of the shirt can sue for damages and since there's no resale, the amount to be sued for damages will be the price of each shirt multiplied by the total number of shirt. This will be:
= $10 × 50
= $500
Calculate GDP loss if equilibrium level of GDP is $8,000, unemployment rate 8.8%, and the MPC is 0.80. Hint: (Use Okun's law to calculate GDP loss)
Answer:
Loss of gdp = 7.6%
Eliminate gdp loss = 121.6
Explanation:
According to Okun's law , 12% loss of gdp.
Natural rate of unemployment=5%
Cyclical unemployment = Actual unemployment - Rate of Unemployment
Cyclical unemployment = 8.8% - 5%
Cyclical unemployment =3.8%
Loss of gdp = 3.8%(2)
Loss of gdp = 7.6%
Loss of gdp = (7.6%(8,000)
Loss of gdp = 608
Spending multiplier = 1/(1 - mpc)
Spending multiplier = 1/(1 - 0.8)
Spending multiplier = 1/ 0.2
Spending multiplie = 5
So,
Eliminate gdp loss = 608/5
Eliminate gdp loss = 121.6
f Quail Company invests $46,000 today, it can expect to receive $12,000 at the end of each year for the next seven years, plus an extra $6,800 at the end of the seventh year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 12% return on investments
Answer:
NPV = $11841.05313 rounded off to $11841.05
Explanation:
The Net Present value or NPV is a metric for investment appraisal purposes. It calculates the present value of cash inflows less any cash outflow made at the start of the project to generate those cash inflows. The formula to calculate the NPV is,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n - Initial Outlay
Where,
CF1, CF2 and so on represents the cash flow in year 1 , year 2 and so on.r is the discount rate or required rate of returnNPV = 12000 / (1+0.12) + 12000 / (1+0.12)^2 + 12000 / (1+0.12)^3 +
12000 / (1+0.12)^4 + 12000 / (1+0.12)^5 + 12000 / (1+0.12)^6 +
(12000 + 6800) / (1+0.12)^7 - 46000
NPV = $11841.05313 rounded off to $11841.05
Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $96,000 at the end of each month. At the end of the contract, Velocity either will give Burger Boy a refund of $32,000 or will be entitled to an additional $32,000 bonus, depending on whether sales at Burger Boy at year-end have increased to a target level. At the inception of the contract, Velocity estimates an 80% chance that it will earn the $32,000 bonus and calculates the contract price based on the expected value of future payments to be received. At the start of the fifth month, circumstances change, and Velocity revises to 60% its estimate of the probability that it will earn the bonus. At the end of the contract, Velocity receives the additional consideration of $32,000.
Answer:
the journal entries:
to record the contract
Dr Accounts receivable 96,000
Dr Bonus receivable 2,400
Cr Service revenue 98,400
to record adjustment of bonus receivable at month 5:
Dr Service revenue 6,400
Cr Bonus receivable 6,400
to record service revenue for the fifth month:
Dr Accounts receivable 96,000
Dr Bonus receivable 800
Cr Service revenue 96,800
to record getting the bonus:
Dr Cash 32,000
Cr Bonus receivable 6,400
Cr Service revenue 25,600
Explanation:
total value of the contract:
[($96,000 x 8) + $32,000] x 0.8 = $640,000
[($96,000 x 8) - $32,000] x 0.2 = $147,200
total expected value = $787,200
expected value of the bonus = $787,200 - ($96,000 x 8) = $19,200, monthly bonus receivable $19,200 / 8 = $2,400
the adjustments required during the fifth month:
[($96,000 x 8) + $32,000] x 0.6 = $480,000
[($96,000 x 8) - $32,000] x 0.4 = $294,400
total expected value = $774,400
expected value of the bonus = $774,400 - ($96,000 x 8) = $6,400, monthly bonus receivable $6,400 / 8 = $800
Matt's parents decide to set up a college fund on his 10th birthday. They would like for the fund to be worth $36,273 on his 18th birthday. The make semi-annual payments into an account earning interest at an annual rate of 4.4%, compounded semi-annually. Find the size of the semi-annual payments required in order for the parents to have saved the desired amount by Matt's 18th birthday. Find the total amount deposited by the parents. As of Matt's 18th birthday, find the total amount of interest earned by the account. Enter the answer to Part c in the box below. Round your answer to the nearest dollar.
Answer:
a. $1,916.00
b. $30,656
c. $7,617
Explanation:
a. As they are depositing a set amount every 6 months, this is an annuity. The $36,273 is the future value of the annuity in 8 years.
n = 8 years * 6 = 16 semi annual periods
rate = 4.4/ 2 = 2.2% every 6 months
Future value = Amount * (([1 + i]^n) - 1 )/i
36,273 = Amount * (([1 + 2.2%]^16) - 1 )/2.2%
36,273 = Amount * 18.931485
Amount = 36,273/18.931485
= $1,916.00
b. Total amount deposited
= 16 * 1,916
= $30,656
c. Total amount of interest earned;
= Amount in fund - Total deposited
= 38,273 - 30,656
= $7,617
An auto manufacturer sends cars from two plants, I and II, to dealerships A and B located in a mid-western city. Plant I has a total of 74 cars to send, and plant II has 70. Dealer A needs 79 cars, and dealer B needs 65. Shipping costs are $300 per car from plant I to dealer A, $130 per car from plant I to dealer B, $180 per car from plant II to dealer A, and $160 per car from plant II to dealer B. The manufacturer wants to limit total shipping costs to exactly $29,900. How many cars should be sent from each plant to each dealer
Answer:
Total transportation cost = 23,750
Explanation:
We can calculate how many cars should be sent from each plant to each dealer as follows
DATA
Plant 1 cars = 74
Plant 2 cars = 70
Demand
Dealer A needs 79 cars
dealer B needs 65
Shipping costs are
$300 per car from plant I to dealer A,
$130 per car from plant I to dealer B,
$180 per car from plant II to dealer A
$160 per car from plant II to dealer B.
limit total shipping costs to exactly $29,900
Start from the cheapest
$130 per car from plant I to dealer B.
$130 x 65 = 8,450
$180 per car from plant II to dealer A
$180 x 70 = 12,600
$300 per car from plant I to dealer A,
$300 x 9 = 2700
Total transportation cost = 8,450 + 12,600 + 2700
Total transportation cost = 23,750
What would be most likely to happen if the discount rate were raised?
A. Depositors would make a run on a bank.
thing
B. Banks would make fewer loans.
C. Creditors would refuse to pay back loans.
D. Banks would stop opening savings accounts.
Answer:
B. Banks would make fewer loans
Explanation:
The discount rate is the interest rate that commercial banks pay to the Federal Reserve for loans received. Banks usually borrow to cater to their short-term cash-flow requirements. The discount rate is higher than the inter bank rate or the fed funds rate(the rate that banks charge each other for loans).
An increase in the discount rate causes the inter bank rate to rise (the Fed controls both rates). It means commercial banks are borrowing money from the Fed and each other at a higher interest rate. Consequently, commercial banks charge a higher interest rate for loans advanced to customers. An increase in interest rates at the banks discourages customers from borrowing.
which 2 statements regarding intuit approved quickbooks online apps are true
Answer:
1. It is recommended that the master administrator of the quick-books company complete the setup.
2. You can connect an existing quick-books payments, Go payment or intuit merchant services account.
Explanation:
What advantages do Sharepoint and similar products offer above and beyond the standard project management tools?
Answer and Explanation:
The advantages of sharepoint over similar products are as follows :
Sharepoint is customizable as some of the features and interface of the app can be customized to suit business needs
Sharepoint integrates with other Microsoft applications such as Microsoft Excel, Word, PowerPoint, MS Exchange Server and other ERP and CRM applications therefore increasing flexibility and reducing time consumption
There is also an intranet feature which is a collaborative platform that is used to share files and serve as an internal website for communication within a company
Sharepoint has a centralized administration where users can modify settings, update data and tweak features all in one place
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 117 Units in beginning inventory 0 Units produced 2,900 Units sold 2,500 Units in ending inventory 400 Variable costs per unit: Direct materials $ 32 Direct labor $ 45 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 9 Fixed costs: Fixed manufacturing overhead $43,500 Fixed selling and administrative expense $15,000 The total gross margin for the month under absorption costing is:
Answer:
The correct answer is "57,500 ".
Explanation:
Unit product cost
= [tex]32 + 45 + 2 + \frac{43500}{2900}[/tex]
= [tex]94[/tex]
Gross margin = Sales - Cost of Goods Sold
= [tex](2500\times 117) - (2500\times 94)[/tex]
= [tex]292,500-235,000[/tex]
= [tex]57,500[/tex]
Clark Company estimated the net realizable value of its accounts receivable as of December 31, 2019, to be $167,000, based on an aging schedule of accounts receivable. Clark has also provided the following information: The accounts receivable balance on December 31, 2019 was $177,400. Uncollectible accounts receivable written off during 2019 totaled $12,200. The allowance for doubtful accounts balance on January 1, 2019 was $15,400. How much is Clark's 2019 bad debt expense
Answer: $7200
Explanation:
Clark's 2019 bad debt expense will be calculated thus:
Balance for allowance for doubtful accounts will be:
= $177400 - $167000
= $10400
The Uncollectible accounts written off will be:
= $15400 - $12200
= $3200
Clark's 2019 bad debt expense:
= $10400 - $3200
= $7200
Answer:
sry need to answer (points) :(
Explanation:
On December 31, 2019, Splish Inc. borrowed $4,320,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $518,400; June 1, $864,000; July 1, $2,160,000; December 1, $2,160,000. The building was completed in February 2021. Additional information is provided as follows.
1. Other debt outstanding
10-year, 14% bond, December 31, 2013, interest payable annually $5,760,000
6-year, 11% note, dated December 31, 2017, interest payable annually $2,304,000
2. March 1, 2020, expenditure included land costs of $216,000
3. Interest revenue earned in 2020 $70,560
A. Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building.
B. Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2020.
Answer:
$285,480
Explanation:
The amount of interest to be capitalized in 2020 in relation to the construction of the building can be calculated as follows.
Date Amount Time Weighted Average expenditure
Mar-01 $518,400 10-Dec 432,000
Jun-01 $864,000 07-Dec 504,000
Jul-01 $2,160,000 06-Dec 1,080,000
Dec-01 $2,160,000 01-Dec 180,000
2,196,000
Amount of interest = $2,196,000 x 13%
Amount of interest = $285,480
Actual Interest Paid
$4,320,000 x 13% = $561,600
$5,760,000 x 14% = $806,400
$2,304,000 x 11% = $253,440
$1,621,440
Journal Entry 31-12-2020
Dr Building $285,480
Dr Interest Expense. $1,335,960
Cr Cash $1,621,440
is the price of a movie ticket likely to go up or down why?
Answer:
Down
Explanation:
Because they want more people to watch
A U.S. business sells milk to consumers in France. Which situation would
most likely cause demand for milk to decline in France?
A. A popular French nutrition author claims that milk is bad for
people's health.
B. French consumers expect the price for milk to increase in the
future.
C. Cheese and other products made from milk become more popular
in France
D. The French population grows steadily due to years of economic
prosperity
The situation that cause the demand for falling in france should be option A. A popular French nutrition author claims that milk is bad for people's health.
The reason why it cause demand for milk:
The various consumers believes on expert's suggestion to select between products. Marketers know this, and that is why they incorporate doctors and other professionals in advertisements. Should the popular nutrition author provides a negative opinion on milk products, the demand for milk in France will decline.
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Answer:
A
Explanation:
Just took the quiz
You own a Home that Cost $200,000. What part of the Accounting Equation would this be?
Answer:
Assets
Explanation:
g krepps Corporation produces a single product. Last year, Krepps manufactured 25,000 units and sold 20,000 units. Production costs for the year were as follows: Direct materials 180,000 Direct labor 120,000 Variable manufacturing overhead 210,000 Fixed manufacturing overhead 250,000 Sales totaled $850,000 for the year, variable selling and administrative expenses totaled $110,000, and fixed selling and administrative expenses totaled $170,000. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit was:
Answer:
The contribution margin per unit is $16.6
Explanation:
The contribution margin per unit is $16.6
Please find attached detailed solution to the above question and answer.
Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March 1 6,000 Materials inventory, March 31 8,000 Direct labor 25,000 Factory overhead 37,000 Work in process inventory, March 1 22,000 Work in process inventory, March 31 23,500 Finished goods inventory, March 1 21,000 Finished goods inventory, March 31 30,000 Sales 257,000 Selling and administrative expenses 79,000
Prepare a schedule of cost of goods manufactured. Enter all amounts as positive numbers. Zoe Corporation Statement of Cost of Goods Manufactured For the Month Ended March 31
,Answer:
Zoe Corporation
Statement of Cost of Good Manufactured For the Month Ended March 31
Work in Process Inventory 22,000
Direct Materials:
Materials inventory, March 1 6,000
Purchases 92,000
Less Materials inventory, March 31 ( 8,000)
Cost of Materials used in Production 90,000
Direct Labor 25,000
Factory Overhead 37,000
152,000
Total Manufacturing Cost 174,000
Less Work in Process Inventory, March 31 (23,500)
Cost of Goods Manufactured 150,500
Huey sold a warehouse with an original cost of $150,000 for $230,000 to an S corp where he owns a 51% interest. The S corp will use the warehouse in the business. The warehouse had accumulated depreciation of $40,000. Assuming no other asset sales during the year, how will the gain be taxed to Huey
Answer:
$2,700
Explanation:
First, we need to determine the value of the warehouse at sale.
Current value = $150,000 - $40,000
= $110,000
The gain or loss = Selling price - Current value
= $230,000 - $110,000
= $120,000.
We will also determine the partnership interest amount, which is;
= 51% × $230,000
= $117,300
This means that the interest value of $117,300 will be used to buy off the warehouse.
Hence, Huey's gain and taxable gain will be;
= $120,000 - $117,300
= $2,700
Select all that apply What is the difference between an adjusted trial balance and an unadjusted trial balance? (Check all that apply.) Multiple select question. The adjusted trial balance is a list of accounts and their balances after adjusting entries have been posted. The unadjusted trial balance is more up to date and should be used to prepare financial statements. The adjusted trial balance is used to prepare financial statements. The adjusted trial balance generally has more accounts listed than the unadjusted trial balance.
Answer:
The adjusted trial balance is a list of accounts and their balances after adjusting entries have been posted.The adjusted trial balance is used to prepare financial statements. The adjusted trial balance generally has more accounts listed than the unadjusted trial balance.Explanation:
The Adjusted Trial balance lists the accounts that the company has at their ending balances which means that adjusting entries have been posted.
As a result of the Adjusted Trial Balance having final account balances, it is used to prepare the financial statements for the company as only final balances should be used in such.
More often than not, the Adjusted trial balance will have more accounts than the unadjusted balance because in process of adjustment, more accounts may be created for transactions that were not posted properly. For instance, there might be liability accounts for expenses if the expenses were not paid in the current period.
Total Company North South Sales $ 600,000 $ 400,000 $ 200,000 Variable expenses 360,000 280,000 80,000 Contribution margin 240,000 120,000 120,000 Traceable fixed expenses 120,000 60,000 60,000 Segment margin 120,000 $ 60,000 $ 60,000 Common fixed expenses 50,000 Net operating income $ 70,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region.
Answer:
1. Company wide break-even point in dollar sales= $425,000
2. Break-even point in dollar sales for North region= $200,000
3. Break-even point in dollar sales for South region = $100,000
Explanation:
1. Computation of the companywide break-even point in dollar sales
First step is to find the Contribution margin ratio
Using this formula
Contribution margin ratio = Contribution margin / Sales
Contribution margin ratio:
Total company: ($240,000/$600,000)=0.4
North : ($120,000/$400,000)=0.4
South : ($120,000/$200,000)=0.6
Now let compute the Company wide break-even point in dollar sales using this formula
Company wide break-even point in dollar sales= Fixed costs / Contribution margin ratio
Let plug in the formula
Company wide break-even point in dollar sales= ($120,000 + $50,000) / 0.4
Company wide break-even point in dollar sales= $425,000
2. Computation for the break-even point in dollar sales for the North region using this formula
Break-even point in dollar sales for North region = Traceable fixed expenses / Contribution margin ratio
Let plug in the formula
Break-even point in dollar sales for North region= $60,000 / 0.3
Break-even point in dollar sales for North region= $200,000
3. . Computation for the break-even point in dollar sales for the South region.
Using this formula
Break-even point in dollar sales for South region = Traceable fixed expenses / Contribution margin ratio
Let plug in the formula
Break-even point in dollar sales for South region = $60,000 / 0.6
Break-even point in dollar sales for South region = $100,000
