Answer:
Assets 2018 2019 2020 2021
Current Assets:
Cash 368 1,823 1,721 2,270
Account Receivavle 1,622 1,599 1,919 2,303
Inventories 544 590 708 850
Current Assets 2,534 4,012 4,348 5,422
Fixed Assets
Fixed Assets 7,800 8,474 8,898 9,343
Accumulated depreciation -580 -730 -847 -890
Net Fixed Assets 7,220 7,744 8,050 8,453
Total 9,754 11,756 12,398 13,875
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Account Payable 370 512 614 737
Short term debt 1,800 2,288 2,288 2,288
Total Current liabilities 2,170 2,800 2,902 3,025
Long Term Debt 5,070 5,392 4,852 4,312
Shareholders' Equity:
Common Stock 1,000 1,000 1,000 1,500
Additional paid in capital 2,000 2,000 2,000 2,000
Retained earnings -250 797 1,876 3,270
Total 2,750 3,797 4,876 6,770
Treasury stock -233 -233 -233 -233
Total Shareholders' Equity: 2,517 3,564 4,643 6,537
Total 9,757 11,756 12,398 13,875
-3 0 0 0
Statements of Income
2018 2019 2020 2021
Revenues 16,389 18,210 21,852 26,222
Cost of goods sold 10,832 12,035 14,442 17,330
Gross profit on sales 5,558 6,175 7,410 8,892
Operating expenses 3,521 3,912 4,694 5,633
Depreciation 150 150 117 42
EBIT 1,887 2,113 2,598 3,216
Interest expense 603 502 384 357
Income Taxes 449 564 775 1,001
Net Income 835 1,047 1,439 1,859
Explanation:
Assets 2018 2019 2020 2021
Current Assets:
Cash 368 1,823 1,721 2,270
Account Receivavle 1,622 1,599 1,919 2,303
Inventories 544 590 708 850
Current Assets 2,534 4,012 4,348 5,422
Fixed Assets
Fixed Assets 7,800 8,474 8,898 9,343
Accumulated depreciation -580 -730 -847 -890
Net Fixed Assets 7,220 7,744 8,050 8,453
Total 9,754 11,756 12,398 13,875
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Account Payable 370 512 614 737
Short term debt 1,800 2,288 2,288 2,288
Total Current liabilities 2,170 2,800 2,902 3,025
Long Term Debt 5,070 5,392 4,852 4,312
Shareholders' Equity:
Common Stock 1,000 1,000 1,000 1,500
Additional paid in capital 2,000 2,000 2,000 2,000
Retained earnings -250 797 1,876 3,270
Total 2,750 3,797 4,876 6,770
Treasury stock -233 -233 -233 -233
Total Shareholders' Equity: 2,517 3,564 4,643 6,537
Total 9,757 11,756 12,398 13,875
-3 0 0 0
Statements of Income
2018 2019 2020 2021
Revenues 16,389 18,210 21,852 26,222
Cost of goods sold 10,832 12,035 14,442 17,330
Gross profit on sales 5,558 6,175 7,410 8,892
Operating expenses 3,521 3,912 4,694 5,633
Depreciation 150 150 117 42
EBIT 1,887 2,113 2,598 3,216
Interest expense 603 502 384 357
Income Taxes 449 564 775 1,001
Net Income 835 1,047 1,439 1,859
The most recent financial statements for Live Co. are shown here:
Income Statement Balance Sheet
Sales $4,800 Current assets $5,102 Debt $10,201
Costs
3,168
Fixed assets 12,491 Equity 7,392
Taxable income $1,632 Total
$17,593
Total
$17,593
Taxes (34%) 555
Net income
$1,077
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible.
Required:
What is the internal growth rate?
A. 4.48%
B. 4.58%
C. 4.38%
D. 11.36%
E. 1.87%
Answer:
The answer is "Option A".
Explanation:
Using formula:
[tex]\text{Equity Return} = \frac{ \text{Net Income}}{ \text{Total Assets}} \times 100[/tex]
[tex]= \frac{1,077}{17,593} \times 100 \\\\= 0.0612175297 \times 100\\\\= 6.12175297\\\\=6.12 \%[/tex]
[tex]\text{Calculating the Plowback Ratio} \ (b) = 1- \text{Dividend Payout Ratio}[/tex]
[tex]= 1-0.30 \\\\ = 0.70[/tex]
[tex]\text{Internal Growth Rate} = \frac{ROA \times b }{(1-ROA \times b)} \\\\[/tex]
[tex]= \frac{0.0612 \times 0.70}{(1-0.0612\times 0.70)} \\\\= \frac{0.04284}{0.95716} \\\\ =0.044754073 \\\\ =4.47\%[/tex]
Indiana Company produces couches. The fixed monthly cost of production is $8,000, and the variable cost per unit is $65. The couches sell for $180 apiece. Answer these questions: 3 points each 1) For a monthly volume of 300 tables, determine the total cost, total revenue, and profit. 2) Determine the monthly break-even volume for Indiana Company.
Answer: See explanation
Explanation:
1) For a monthly volume of 300 tables, determine the total cost, total revenue, and profit.
Fixed monthly cost = $8000
Variable cost per unit = $65
Selling price = $180 each
Monthly volume = 300
Therefore, the total cost will be
= $8000 + ($65 × 300)
= $8000 + $19500
= $27500
The total revenue will then be:
= Price × Quantity
= $180 * 300 units
= $54000
Total profit will be:
= Sales revenue - Cost
= $54000 - $27500
= $26500
b) Break even volume simply means the volume whereby no profit or loss is incurred. This will be:
= $8000 / ($180 - $65)
= $8000 / $115
= 69.56 units
= 70 units
(a) Explain the quantity theory and
(b) how does the theory explains the cause of inflation
Suppose that in the market for loanable funds, the governement is currently running a deficit, and net exports are negative. Then, there is a sharp recession, causing consumer spending on both domestic and imported goods to fall (just as is currently happening), so that the size of the trade deficit shrinks. What effect will this have on the market for loanable funds
Answer: 4. Demand will shift inwards, lower rates and decreasing lending.
Explanation:
People demand loanable funds for spending on consumption and investment. If there is a recession, people will buy less goods and companies will invest less as well.
This will reduce the demand that people and companies have for loanable funds. The demand will therefore shift inwards to the left and lead to lower rates and decreased lending.
Jefferson Company, a commercial painting contractor, uses a normal-costing system to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct labor) and one indirect-cost pool called overhead costs. To each job, Jefferson allocates overhead at a budgeted rate of 80% of direct labor costs.
Jefferson provides the additional information for February:
1. As of February 1, Job A21, the only job in process, had incurred direct material costs of $30,000 and direct labor costs of $50,000.
2. Jobs A22, A23, and A24 were started in February.
3. Direct materials used during February were $150,000.
4. Direct labor costs for February were $120,000.
5. Actual overhead costs for February were $102,000.
6. On February 28, Job A24 was the only job still in process, and it had incurred direct materials costs of $20,000 and direct labor costs of $40,000.
As each job is completed, its cost is transferred to the Cost of Jobs Billed account. Each month, Jefferson closes any under-or over-allocated overhead to Cost of Jobs Billed.
1. Give one example of a direct cost and one example of an overhead cost for a job undertaken by Jefferson Company.
2. Calculate the overhead allocated to Job A21 as of February 1.
3. Calculate the overhead allocated to Job A24 as of February 28.
4. Calculate the under- or overallocated overhead for February.
5. Calculate ending balance of jobs still in process as of February 28.
6. Compute the Cost of Jobs Billed for February.
Answer:
Jefferson Company1. An example of a direct cost is the cost of direct raw materials. An example of an overhead cost is cost of factory repairs and maintenance.
2. The overhead allocated to Job A21 as of February 1 is $40,000.
3. The overhead allocated to Job A24 as of February 28 is $32.000.
4. The under-allocated overhead for February is $6,000
5. The ending balance of jobs still in process as of February 28 is $92,000.
6. The Cost of Jobs Billed for February is $394,000.
Explanation:
a) Data and Calculations:
Budgeted overhead allocation rate = 80% of direct labor costs
Beginning WIP:
Materials $30,000
Direct labor 50,000
Overhead 40,000 ($50,000 * 80%)
Overhead allocated to Job A21 as of February 1 = $40,000 ($50,000 * 80%)
Overhead allocated to Job A24 as of February 28 = $32,000 ($40,000 * 80%)
Total overhead allocated for February = $96,000 ($120,000 * 80%)
Actual overhead costs incurred = $102,000
Therefore, the under-allocated overhead for February = $6,000
The ending balance of jobs still in process as of February 28 (Job A24) =
Materials costs = $20,000
Labor costs = $40,000
Overhead applied = $32,000
Total costs = $92,000
Cost of Jobs Billed:
Beginning WIP: Cost of Job A21 = $120,000 ($30,000 + 50,000 + 40,000)
Costs incurred during the period:
Cost of Direct Materials 150,000
Cost of Direct Labor 120,000
Allocated overhead costs 96,000
Total costs of production = $486,000
Less Ending WIP (Job A24) = 92,000
Cost of Jobs Billed for February $394,000
Assuming that the balance sheet of BG Land Development is as follows:
Assets Liabilities and Capital
Cash $20,000 Accounts payable $80,000
Non-cash assets 200,000 Mitchell, Loan 10,000
Matthews, capital 50,000
Mitchell, capital 66,000
Michaels, capital 14,000
Total assets $220,000 Total Liab. and capital $220,000
Required:
If partners are to receive the final payment in a lump-sum, when BG Land Development is liquidated, Matthews receives $___, Mitchell receives $____, Michaels receives $____.
Answer:
BG Land Development
If partners are to receive the final payment in a lump-sum, when BG Land Development is liquidated, Matthews receives $_50,000__, Mitchell receives $_66,000___, Michaels receives $__14,000__.
Explanation:
a) Data and Calculations:
Assets Liabilities and Capital
Cash $20,000 Accounts payable $80,000
Non-cash assets 200,000 Mitchell, Loan 10,000
Matthews, capital 50,000
Mitchell, capital 66,000
Michaels, capital 14,000
Total assets $220,000 Total Liab. and capital $220,000
Totals assets = $220,000
Total liabilities (90,000)
Net assets = $130,000
Partners' capital:
Matthews, capital 50,000
Mitchell, capital 66,000
Michaels, capital 14,000
Total capital = 130,000
b) Each partner is entitled to the ratio of his capital balance or the profit and loss sharing ratio, if any. The net asset is computed by deducting all the liabilities, including one of the partners' loans, from the total value of realizable assets. Ordinarily, partners' loans enjoy priority over capital refund during partnership liquidation.
Defaulting on a bond most nearly means
the bond issuer cannot pay the promised amount
O the bond issuer pays a percentage of the bond's value
O the bond holder sells the bond on the secondary market
O the bond's rating has decreased
Megan Finder, a recent college graduate, is applying for her first credit card. The creditor has asked for a personal net worth statement. Megan owns a scooter worth $2,000.00 and has $800.00 in her checking account. She owes Jaycee Auto $920.00 and River College $125.00. Complete a net worth statement for Megan Finder. Select Current Date in the appropriate field. Assets should be listed in order of liquidity, so Cash should be listed first. Liabilities should be reported in alphabetic order.
Answer and Explanation:
The computation of the net worth statement is shown below:
Assets
Checking account $800
Scooter $2,000
Total assets $2,800 (A)
Liabilities
OWed to jaycee Auto $920
River college $125
Total liabilities $1,045 (B)
Net worth $1,755 (A - B)
1. When distribution team members use replenishment reports to retrieve quantities of items to be sent to stores they are:
O A. Mixing
O B. Sending
O C.Packing
O D. Picking
Answer:
D. Picking.................
Distribution team members use replenishment reports to retrieve quantities of items to be sent to stores, this is called as Picking. Hence, Option D is the correct statement.
What is the picking system?Systems for picking orders from warehouses are created to improve picking operations' effectiveness, speed, and accuracy. A few of these systems can be used by businesses to improve order fulfillment processes in their distribution channels.
Hence, Distribution team members use replenishment reports to retrieve quantities of items to be sent to stores, this is called as Picking. Option D is the correct statement.
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Cost flow relationships The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment:
Sales $ 12,755,000
Gross profit 5,359,700
Indirect labor 422,600
Indirect materials 185,500
Other factory overhead 834,900
Materials purchased 4,251,600
Total manufacturing costs for the period 8,122,000
Materials inventory, end of period 298,900
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine the following amounts. Round your answers to the nearest dollar.
Cost of goods sold $_______
Direct materials cost $________
Direct labor cost $_______.
Answer:
Cost of goods sold= $7,395,300
Direct material cost= $3,727,200
Direct labor cost= $3,137,300
Explanation:
A. Calculation to Determine Cost of goods sold using this formula
Cost of goods sold = Sales - Gross Profit
Let plug in the formula
Cost of goods sold= $ 12,755,000 - 5,359,700
Cost of goods sold= $7,395,300
Therefore Cost of goods sold will be $7,395,300
B. Calculation to Determine Direct material cost using this formula
Direct material cost= Material purchased - Indirect materials - Material Inventory, end of period
Let plug in the formula
Direct material cost= 4,251,600 - 185,500 - 298,900
Direct material cost= $3,727,200
Therefore Direct material cost will be $3,727,200
c. Calculation to determine Direct labor cost using this formula
Direct labor cost= Total manufacturing cost - Direct material costs - other factory overhead - Indirect labor
Let plug in the formula
Direct labor cost= 8,122,000 - $3,727,200 - 834,900 - 422,600
Direct labor cost= $3,137,300
Therefore Direct labor cost will be $3,137,300
Listed below are selected Rules of Conduct and ethical problems. Match the rule with the problem to which it applies. (One Rule of Conduct may apply to more than one ethical problem.)
Rules
A. Independence
B. Integrity and objectivity
C. General standards
D. Compliance with standards
E. Accounting principles
F. Contingent fees
G. Acts discreditable
H. Advertising and other forms of solicitation
I. Commissions and referral fees
J. Form or practice and name
Rules
1. An audit client owes the CPA past-due audit fees.
2. A member violates rules issued by the Accounting and Review Services Committee.
3. A CPA accepts a percentage of the client's loan as an audit fee.
4. A CPA robs a service station.
5. The auditors fail to qualify their opinion on financial statements that do not properly apply FASB standards.
Answer:
1. Contingent fees
2. Acts discreditable
3. Commissions and referral fees
4. Compliance and standards
5. Accounting principles
Explanation:
The auditors have responsibility to act professionally as the shareholders rely on their work. The auditors should not accept any gift from other businesses because it may impact their independence and objectivity. The auditors are required to follow all the rules and standards that are issued by the IASB.
One of the key decisions employers must make is the level of compensation provided to employees. Compensation is a significant cost, and employees are one of the most important assets of the organization. It is important that the organization makes and executes good strategic choices. To facilitate this process, many organizations think systematically about its job structures for compensation and pay levels for different jobs.
An organization's job structure consists of relative pay for different functions and different levels of responsibility. It defines, for example, the difference in pay between entry-level and management jobs, as well as different entry-level jobs in different departments, such as in production or accounting. Pay level is the average amount that an organization pays for a particular job and includes wages, salaries, and bonuses. Job structure and pay levels together form the pay structure, a policy that helps the organization achieve goals related to employee motivation, cost control, and the ability to attract and retain talented employees.
This activity is important because it will help you distinguish between the various factors that impact an organization’s pay structure. The goal of this activity is to classify decisions based on the factors used to establish a pay structure.
HR professionals develop pay structures for their organations based on such factors as legal requirements, company goals, and market forces. Drag each item into the appropriate column on the chart.
1. Equal pay for equal work
2. National compensation survey
3. Product markets
4. Benchmarking
5. Equitable pay rates
6. Child labor laws
7. Federal minum- wage laws
8. Overtime pay
9. Retention of talented staff
10. Trends in labor markets
11. Company cost centers
A. Legal Requirements
B. Organizational Goals
C. Market Forces
Answer:
1. Company goals
2.Market forces
3. market forces
4. company goals
5. market forces
6. legal requirement
7. legal requirement
8. company goals
9. company goals
10. market survey
11. company goals
Explanation:
Company goals is to maintain its business profitable. It is important for a business to retain its talented employees for maintaining quality of products. Legal requirements are the laws which are required to be followed by the businesses.
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $6,700 for direct materials, $9,500 for direct labor, and $6,270 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $4,100 for direct materials and $4,100 for direct labor.
Required:
Calculate the overhead cost be added to Job W at year-end
Answer:
Job W= $2,706
Explanation:
First, we need to calculate the predetermined overhead rate based on allocated overhead to Job V:
Job V:
Direct labor= $9,500
Allocated overhead= $6,270
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
6,270= Estimated manufacturing overhead rate*9,500
6,270/9,500= Estimated manufacturing overhead rate
Estimated manufacturing overhead rate= $0.66 per direct labor dollar.
Now, for Job W:
Job W= 0.66*4,100
Job W= $2,706
In January, Dieker Company requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,200, Job 3 $700, and general factory use $600. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31 enter an account title for the journal entry on January 31
Answer:
Dr Work in process inventory 2,800
Dr Factory overhead 600
Cr Raw material inventory 3,400
Explanation:
Work in process = $900 + $1,200 + $700 = $2,800
Factory overhead (supplies) is the same, $600
inventory decrease = WIP + supplies = $2,800 + $600 = $3,400
The Dieker Company will keep track of the production's raw materials on January 31. The final journal entry will read like this:
Dr Work in process inventory 2,800
Dr Factory overhead 600
Cr Raw material inventory 3,400
Work in process = $900 + $1,200 + $700
Work in process = $2,800
Factory overhead (supplies) is the same, $600
Inventory decrease = WIP + supplies
Inventory decrease = $2,800 + $600
Inventory decrease = $3,400
The same amount will be credited to the account for raw materials inventory, reducing the balance of the account to represent the raw materials utilized in production.
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1. Find the derivative y' = dy/dx:
(a) y = 5x2 + 2x-1/2 + 3
(b) y = (3x2 - 1)(5x2 + 2x)
What is the y prime?
Answer:
you did the questions right . very good
Debit and Credit Effects of Transactions
Lincoln Corporation was involved in the following transactions during the current year:
Lincoln borrowed cash from the local bank on a note payable.
Lincoln purchased operating assets on credit. Lincoln paid dividends in cash.
Lincoln purchased supplies inventory on credit.
Lincoln used a portion of the supplies purchased in Transaction d.
Lincoln provided services in exchange for cash from the customer.
A customer received services from Lincoln on credit.
The owners invested cash in the business in exchange for common stock.
The payable from Transaction d was paid in full.
The receivable from Transaction g was collected in full.
Lincoln paid wages in cash.
Indicate the effect on assets, liabilities and stockholders equity.
Solution :
Stock holder's equity
Assets = Liabilities + Contributed Capital Retained earnings
a. Increase Increase
(debit) (credit)
b. Increase Increase
(debit) (credit)
c. Decrease Decrease
(credit) (debit)
d. Increase Increase
(debit) (credit)
e. Decrease Decrease
(credit) (debit)
f. Increase Increase
(debit) (Credit)
g. Increase Increase
(debit) (Credit)
h. Increase Increase
( debit) (credit)
i. Decrease Decrease
(Credit) (debit)
j. Increase/Decrease
(debit)/(credit)
k. Decrease Decrease
(credit) (debit)
ProTech began business at the start of the current year. The company planned to produce 40,000 units, and actual production conformed to expectations. Sales totaled 37,000 units at $42 each. Costs incurred were:
Variable manufacturing overhead per unit
$
19
Fixed manufacturing overhead
240,000
Variable selling and administrative cost per unit
7
Fixed selling and administrative cost per unit
140,000
If there were no variances, the company's absorption-costing income would be ___________
Answer:
Net operating profit= $230,000
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the unitary cost:
Unitary production cost= 19 + (240,000/40,000)
Unitary production cost= $25
Now, the income statement:
Sales= 37,000*42= 1,554,000
COGS= (37,000*25)= (925,000)
Gross profit= 629,000
Total selling and administrative cost= (7*37,000) + 140,000= (399,000)
Net operating profit= $230,000
On January 1, Year 1, Chertco acquired a patent for $500,000 and, using the straight-line method, began amortizing it properly over its estimated useful life of 10 years. The asset has no residual value. At December 31, Year 4, a significant change in the business climate caused Chertco to assess the recoverability of the carrying amount of the patent. Chertco estimated that the undiscounted future net cash inflows from the patent would be $325,000 and that its fair value was $275,000. Accordingly, for the year ended December 31, Year 4, Chertco should recognize an impairment loss of :________.
a. $175,000
b. $50,000
c. $25,000
d. $0
Answer:
c. $25,000
Explanation:
We recognize impairment loss when the Carrying Amount of an Asset is greater than its Recoverable Amount.
Recoverable Amount of an Asset is the Higher of Asset Fair Value and Value in use. The future cash shows represent value in use and these need to be discounted. Since they are not, Recoverable Amount = $275,000
Carrying Amount of an Asset is the Cost of the Asset less all depreciation charges to date of the impairment test, Carrying Amount = $300,000
Therefore, Impairment loss = $25,000 ($300,000 - $275,000)
Taher, an employee with Wilco Plumbing, has been transferred to a different division within the company. To facilitate a smooth transition, the company has initiated a program for Taher that will provide him with the knowledge and skills required to perform the new role effectively. Which of the following human resource management practices did Wilco Plumbing perform?a) trainingb) job analysisc) performance managementd) selectione) recruitment
Answer: training
Explanation:
From the question, we are informed that Taher, is an employee for Wilco Plumbing, and was sent to a different segment in the company and that the company initiated a program that will provide him with the knowledge and skills which is necessary to perform the new role effectively. The human resource management practices performed here is training.
Training simply refers to the learning that one undergoes in a company so that the person can have the required knowledge and skills to perform well in the role that he or she is assigned in the he company and also so that organizational goals can be attained.
For items 1 through 4, select from the first column option list provided the answer for each item that reflects how fund information is reported in the government-wide and fund financial statements. Each choice may be used once, more than once, or not at all.
In items 5 through 8, select from the second column option list provided the answer that indicates whether fund information about long-term liabilities and capital assets is reported in the government-wide and fund financial statements. Each financial statement component is reported in each fund.
Item
Information in governmental funds
Information in proprietary funds
Information in fiduciary funds
Government-wide financial statements:
1. Basis of accounting Accrual Accrual Modified cash
2. Measurement focus Current financial resources
Fund financial statements:
3. Basis of accounting Accrual
4. Measurement focus Current financial resources
Government-wide financial statements:
5. Long-term liabilities Yes
6. Capital assets Yes
Fund financial statements:
7. Long-term liabilities Yes
8. Capital assets
Answer:
1. Accrual
2. Modified Cash
3. Accrual
4. Current Financial resources
5. Yes
6. Yes
7. Yes
8. No
Explanation:
Accrual basis of accounting is a technique in accounting where expenses and revenue are recorded when they are incurred instead of when they are paid. The basis of accounting is accrual concept which compensates the matching concept. Measurement focus is based in current available financial resources and modified cash basis.
27) Which of the following is NOT a potential benefit of owning a small business?
Answer:
D I'm not sure if correct ..
The legal theory of contributory negligence:
a. is in effect in the majority of states throughout the nation.
b. means that, even assuming the defendant is negligent, if the plaintiff is even slightly negligent, the plaintiff recovers nothing.
c. allows the negligent plaintiff to recover if he was responsible for less than 50 percent of his injury.
d. has been criticized as rewarding a plaintiff for being careless.
Answer:
b. means that, even assuming the defendant is negligent, if the plaintiff is even slightly negligent, the plaintiff recovers nothing.
Explanation:
Contributive negligence is a tort in law that allows the defender in a case to completely prevent a plaintiff from getting any recovery in a case.
This occurs if the defender can prove the plaintiff is negligent resulting in their own injury. That is self injury.
On the other hand comparative negligence allows the plaintiff recover a certain percentage in case of negligence that affects himself. For example if plaintiff was 10% negligent then they lose 10% of the amount they were to recover.
So contributory negligence means that, even assuming the defendant is negligent, if the plaintiff is even slightly negligent, the plaintiff recovers nothing.
Which of the following best describes the front-end function of a cloud computing network?
Answer:
the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server
Explanation:
Swifty Company showed the following balances at the end of its first year: Cash $3930 Prepaid insurance 6910 Accounts receivable 4990 Accounts payable 3960 Notes payable 5930 Owner’s Capital 2090 Owner’s Drawings 960 Revenues 32100 Expenses 24800 What did Swifty Company show as total credits on its trial balance? a. $44080 b. $49070 c. $45040 d. $9390
Answer:
$44,080
Explanation:
The total credit for swifty company can be calculated as follows
Account payable + notes payable + common stock + revenue
= 3960 + 5930 + 2090 + 32100
= 44,080
Hence the total credits is $44,080
Sunland Design was founded by Thomas Grant in January 2011. Presented below is the adjusted trial balance as of December 31, 2020.
SUNLAND DESIGN
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $11,760
Accounts Receivable 22,260
Supplies 5,760
Prepaid Insurance 3,260
Equipment 60,760
Accumulated Depreciation-Equipment $35,760
Accounts Payable 5,760
Interest Payable 228
Notes Payable 7,600
Unearned Service Revenue 6,360
Salaries and Wages Payable 1,496
Common Stock 10,760
Retained Earnings 4,260
Service Revenue 62,260
Salaries and Wages Expense 12,060
Insurance Expense 1,046
Interest Expense 578
Depreciation Expense 9,600
Supplies Expenses 3,400
Rent Expense 4,000
$134,484 $134,00
Instructions
Prepare an income statement and a retained earnings statement for the year ending December 31, 2020, and an unclassified balance sheet at December 31.
Answer:
Part a
Income Statement $ $
Service Revenue 62,260
Less Expenses
Salaries and Wages Expense 12,060
Insurance Expense 1,046
Interest Expense 578
Depreciation Expense 9,600
Supplies Expenses 3,400
Rent Expense 4,000 (30,684)
Net Income 31,576
Part b
Retained Income Statement $
Beginning Retained Earnings (27,316)
Add Profit for the year 31,576
Ending Retained Earnings 4,260
Part c
Unclassified Balance Sheet $
ASSETS
Equipment 60,760
Accumulated Depreciation-Equipment (35,760) 25,000
Accounts Receivable 22,260
Supplies 5,760
Prepaid Insurance 3,260
Cash 11,760
TOTAL ASSETS 68,040
EQUITY AND LIABILITIES
EQUITY
Common Stock 10,760
Retained Earnings 4,260
TOTAL EQUITY 15,020
LIABILITIES
Accounts Payable 5,760
Interest Payable 228
Notes Payable 7,600
Unearned Service Revenue 6,360
Salaries and Wages Payable 1,496
TOTAL LIABILITIES 21,440
TOTAL EQUITY AND LIABILITIES 36,460
Explanation:
The Income Statement shows the Profit earned during the year. Profit = Sales - Expenses
The Retained Earnings Statement Shows the Retained Earnings Balance at end of the year. Retained Earnings Balance = Opening Balance + Profit - Dividends.
The Balance Sheet shows the Asset, Liabilities and Equity balances as at the reporting date.
You work in the customer care division at Flannery Electronics. Mr. Gallegos, a longtime customer, is experiencing a problem with his home theater system and has submitted a letter requesting that Flannery Electronics either fix or replace his system at no cost. Unfortunately, Mr. Gallegos’s customer service and factory warranties expired three months ago. You must write to Mr. Gallegos and inform him that Flannery will be unable to honor his request.
1. Should the tone for this message be formal or informal?
A. Formal
B. Informal
2. Which communication channel would be most appropriate?
A. Phone call
B. Letter
C. Instant message
D. Face-to-face meeting
Answer:
1. A. Formal
2. C. Instant message
Explanation:
In this scenario, you are running a business and as such the tone of any message to a customer or potential client should always be formal. Since you have a set public policy for the warranty the best communication channel would be Instant Message or E-mail. This way you can provide a copy of your return policy so that the individual understands that you are not obligated to perform any actions since their warranty has already expired.
At the end of April, the first month of the company's year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a) the income statement for April and (b) the balance sheet as of April 30. Also indicate whether the items in error will be overstated or understated.
Answer:
Overstatement is the situation where the amount of any item has been stated more than its actual figure
Understatement is the situation where the amount of any item has been stated less than its actual figure
a. The rent earned will be understated, as a result of which the income statement will give a lower net income.
b. Because of lower net income, retained earnings in stockholders' equity will be understated, and the liability account of unearned rent will be overstated
Partial adjusted trial balance for Sheffield Corp. at December 31, 2017, includes the following accounts: Retained Earnings $17,000, Dividends $6,700, Service Revenue $36,300 Salaries and Wages Expense $14,000, Insurance Expense $1,880, Rent Expense $4,080, Supplies Expense $1,440, and Depreciation Expense $900. The balance in Retained Earnings is the balance as of January 1.Prepare a retained earnings statement for the year assuming net income is $10,400. List items that increase retained earnings first.
Answer and Explanation:
The preparation of the retained earnings statement is presented below:
Beginning retained earnings balance $17,000
Add: Net income $10,400
less: Dividend -$6,700
Ending retained earnings balance $20,700
We simply added the net income and deduct the dividend from the opening retained earnings balance
Mark is a wealthy private financier who funds projects without utilizing a venture capital limited partnership structure. He typically provides funds for start-up projects that are $1 million or less. There have been instances in the past where Mark lost a huge share of money in some projects, but he also received high returns on some other projects. He is aware of the risks, but that does not stop him from funding start-ups. Which of the following would best describe Mark?
a. He is a broker.
b. He is a laggard.
c. He is an angel investor.
d. He is a market leader
Answer:
c. He is an angel investor.
Explanation:
Angle investors would represent the financing companies that are big and they are working for operating the base market in which the investor would be aware of what to be invested at the home markets. The tyoe of investment that discussed on the given situation represent the angle investing
Therefore the option c. is correct
Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.7× Return on assets (ROA) 5.0% Return on equity (ROE) 13.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Debt-to-capital ratio: %
Answer:
Profit margin=3%
Debt-to-capital ratio: = 3.8%
Explanation:
Calculations for Profit margin % and Debt-to-capital ratio: %
Calculation for profit margin
Profit margin =.05/1.7
profit margin=0.03*100
profit margin=3%
Calculation for Debt-to-capital ratio using this formula
Debt-to-capital ratio= ROA * (1 / ROE)
Let plug in the formula
Debt-to-capital ratio = .05 * (1 / .013)
Debt-to-capital ratio = .05 *76.92
Debt-to-capital ratio= 3.8%
Therefore: Profit margin=3%
Debt-to-capital ratio = 3.8%
