Answer:
The answer is A
Explanation:
A closing balance is the amount of money a business has at the end of a specific time period.
Tanner wants to buy a new car. What will he most likely consider when making his decision on the type of car to buy?
Answer: a deal website that compares different types of cars, so he can choose the one he likes best
Explanation:
When buying a good or service, it is best to look out for a variety of those goods because it will enable a person to be able to compare the different varieties and be able to pick the one most suitable for them.
Tanner therefore will most likely use a website that compares cars so that he is able to see the features that different cars offer which will enable him make a decision that is most suitable for him.
Capital budgeting analysis not only requires the evaluation of cash flows but also requires the understanding of the origin of those cash flows. Based on your understanding of cash flows in a firm, complete and answer the following questions: Which of the following is a reason cash flows may differ from accounting income? The total number of units sold will be different for accounting income and cash flows. Depreciation is a tax-deductible expense but is not a cash outlay.
Answer:
The reason cash flows may differ from accounting income is, for example:
Depreciation is a tax-deductible expense but is not a cash outlay.
Explanation:
Cash flows are transactions that involve the inflow or outflow of cash. For example, with depreciation expense, the cash outlay could have taken place before, when the asset was initially purchased. But, when the asset is put to use, the depreciation cost is deducted from the accounting income. This implies that there will no longer be any cash flowing out of the business during the periods the asset's cost is being written off as an expense.
A reason cash flows may differ from accounting income is depreciation is a tax-deductible expense but is not a cash outlay.
Capital budgeting analysis is the process of determining the profitability of a project using the projected cash flows.
Types of capital budgeting analysis
Internal rate of return Net present value Payback methodCash flow in the sum of depreciation and accounting income. While, accounting income does not include deprecation. For example, if net income is $10,000, deprecation is $2000, cash flow is $12,000.
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The Carlton Corporation has $5 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 10. The firm has $5 million in excess cash. a. Compute the current price of the stock. (Do not round intermediate calculations and round your answer to 2 decimal places.) b. If the $5 million is used to pay dividends, how much will dividends per share be? (Do not round intermediate calculations and round your answer to 2 decimal places.) c. If the $5 million is used to repurchase shares in the market at a price of $30 per share, how many shares will be acquired? (Do not round intermediate calculations and round your answer to the nearest whole share.) d. What will the new earnings per share be? (Use the rounded number of shares computed in part c but do not round any other intermediate calculations. Round your answer to 2 decimal places.) e-1. If the P/E ratio remains constant, what will the price of the securities be? (Use the rounded answer from part d and round your answer to the nearest whole dollar.) e-2. By how much, in terms of dollars, did the repurchase increase the stock price? (Use the rounded whole dollar answer from part e-1. A negative value should be indicated with a minus sign. Round your answer to the nearest whole dollar.) f. Has the stockholders' total wealth changed as a result of the stock repurchase as opposed to receiving the cash dividend? Yes No
Answer:
a. Compute the current price of the stock.
P/E ratio = 10
EPS = $5,000,000 / 2,000,000 stocks = $2.50 per stock
price = $2.50 x 10 = $25
b. If the $5 million is used to pay dividends, how much will dividends per share be?
$2.50, same as EPS
c. If the $5 million is used to repurchase shares in the market at a price of $30 per share, how many shares will be acquired?
$5,000,000 / $30 = 166,666.7 ≈ 166,667 stocks
d. What will the new earnings per share be?
outstanding stocks = 2,000,000 - 166,667 = 1,833,333
EPS = $5,000,000 / 1,833,333 = $2.73
e-1. If the P/E ratio remains constant, what will the price of the securities be?
price = $2.73 x 10 = $27.30
e-2. By how much, in terms of dollars, did the repurchase increase the stock price?
$27.30 - $25 = $2.30
f. Has the stockholders' total wealth changed as a result of the stock repurchase as opposed to receiving the cash dividend?
No
Ashland Corporation estimates its manufacturing overhead costs to be $200,000 and its direct labor costs to be $336,000 for 2020. The actual manufacturing labor costs were $88,000 for Product 1, $132,000 for Product 2 and $168,000 for Product 3 during 2020. Manufacturing overhead is allocated to products on the basis of direct labor costs using a predetermined overhead rate. The actual manufacturing overhead cost for the year was $180,000. The amount of overhead assigned to Product 3 during 2020 was:
Answer:
Allocated MOH= $99,960
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 200,000 / 336,000
Predetermined manufacturing overhead rate= $0.595 per direct labor dollar
Now, we can allocate overhead to Product 3:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 0.595*168,000
Allocated MOH= $99,960
Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019: Date Activity Quantity Unit Price 5/1 Beginning Inventory 100 $10 5/5 Purchase 250 $12 5/15 Purchase 200 $14 5/25 Purchase 250 $16 Sales were 580 units at $20. Using the LIFO method, determine the dollar value of Cost of Goods Sold for the month of May.
Answer:
.$7,280
Explanation:
Date Activity Quantity Unit Price
5/1 Beginning Inventory 100 $10
5/5 Purchase 250 $12
5/15 Purchase 200 $14
5/25 Purchase 250 $16
Sales were 580 units at $20.
Using the FIFO method, cot of goods sold is:
= (100 x $10) + (250 x $12) + (200 x $14) + (30 x $16) = $7,280
when you use the first in, first out (FIFO) method, you calculate cost of good sold using the oldest units in inventory first (not necessarily the oldest physical units but their price).
Doreen has preferences represented by the utility function U(x, y) = 10x + 5y. She consumes 10 units of good x and 9 units of good y. If her consumption of good x is lowered to 1, how many units of y must she have in order to be exactly as well off as before?
Answer:
she must consume 11 units of good Y
Explanation:
Doreen's current utility = (10 x 10) + (5 x 9) = 145 utils
if she consumes only 9 goods of X, her utility will be:
90 + 5Y
the amount of good Y that makes both equations equal is:
90 + 5Y = 145
5Y = 55
Y = 55 / 5 = 11 units
If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour, what is the estimated finished goods inventory balance at the end of July
Answer:
$247,000
Explanation:
The computation of the estimated finished goods inventory balance at the end of July is shown below:-
Unit product cost = 5 × 2.4 + 14 × 2 + 6 × 2
= 52
Now,
Ending finished goods inventory balance = Budgeted unit sales × Ending finished goods inventory percentage × Unit product cost
= 19,000 × 25% × 52
= $247,000
Therefore we have applied the above formula
hese are the simplified financial statements for Judd Enterprises. Income statement Current Projected Sales na 1,000 Costs na 720 Profit before tax na 280 Taxes (25%) na 70 Net income na 210 Dividends na 63 Balance sheets Current Projected Current Projected Current assets 100 115 Current liabilities 70 81 Net fixed assets 900 1,080 Long-term debt 400 Common stock 300 Retained earnings 230 Refer to the Judd Enterprises financial statements. What is Judd's projected retained earnings under this plan
Answer:
Judd’s projected retained earnings under this plan = $377
Explanation:
Judd’s projected retained earnings under this plan. = Old retained earnings + New net income - Current dividends
Judd’s projected retained earnings = $230 + $210 - $63
Judd’s projected retained earnings = $377
eorge and Weezy received $30,200 of Social Security benefits this year ($12,000 for George; $18,200 for Weezy). They also received $5,000 of interest from jointly owned City of Ranburne Bonds and dividend income. What amount of the Social Security benefits must George and Weezy include in their gross income under the following independent situations
Answer:
$0
Explanation:
George and Weezy will not get any amount as social security benefit if they file married joint. The sum of their modified AGI plus the 50% of their social security benefit is [$5,000 + $8,000 + $15,100]. This equals to $28,100 which is below the minimum amount of social security.
Parent Corporation acquired 100% of Sub Corporation on January 1, 2020 for $285,000. The trial balances for the two companies on December 31, 2020, included the following amounts: Other information: 1. Out of the total purchase price, $60,000 is paid for the goodwill. However, the manager assess the reporting division and estimated that 50% of the goodwill has impaired. 2. The rest of the differential is split between the building and equipment (40%) and inventory (60%). By the end of the year, Sub Corp sold 50% of all the inventories acquired. The building and equipment has five years of remaining economic life and the company uses the straight line depreciation. 3. Sub Corp owed Parent Corp $20,000 in the form of accounts of payable as of December 31, 2020. Task 1a: Calculate the amount of differential? Task 1b: What is the amount of excess value (i.e., fair value above the book value)? Task 1c: What is the book value of Sub’s net asset? Task 2: Give all journal entries recorded by Parent with regard to its investment in Sub during 2020.
Answer:
Note: The full question is attached as picture
Task 1
a. Net Assets of Company = Common Stock + Retained Earning = $25,000 + $115,000 = $140,000
Amount of Differential on purchase of Company = Purchase price - Net Assets
Amount of Differential on purchase of Company = $285,000 - $140,000
Amount of Differential on purchase of Company = $145,000
b. Excess Value = $145,000 - $60,000 = $85,000
c . Book Value of Sub's Net Assets = $140,000
Task 2
Journal entries recorded by Parent with regard to its investment in Sub during 2020.
Date Description and Explanation Debit Credit
Investment in Sub Corp $285,000
To Bank $285,000
(Being purchase consideration paid)
Under what conditions might concentration on a single business be inconsistent with the goal of maximizing stockholder wealth?
Answer and Explanation:
Concentration on a single business could be inconsistent with stockholders wealth maximation when there is need for diversification or investment in other businesses for maximisation of shareholders returns. Concentration in one business brings the risk of going out of business as a result of products or services going obsolete, lack of expansion or higher level of competition and low market share. Therefore concentration in one single business is likely to tie down resources that could be used to diversify into other areas that may be profitable hence reducing shareholders wealth.
What are entrepreneurs?
Answer:
Entrepreneurs are people who organize/operate their own buisness or buisnesses.
Explanation:
hope this helps lad :)
In the basic EOQ model, if annual demand is 50, carrying/holding cost is $2, and ordering cost is $15, This will result in a total annual inventory cost of:_______
Answer:
$104.77
Explanation:
Total annual inventory cost (TC)= DC + (Q/2)H + (D/Q)S
Where,
D = annual demand = 50
S = Ordering cost = $15
H = Holding cost = $2
Q= ?
But,
EOQ = √2DS/H
= √ 2 * 50 * 15 / 2
EOQ = 27.39 units
TC = 50 × 2 + 2(27.39/2) + 15(50/27.39)
= 50 + 27.39 + 27.38
= $104.77
Packer Corporation’s year 8 income statement reported $130,000 in income before provisions for income taxes. To compute the provision for federal income taxes, the following year 8 data are provided: Rent received in advance $ 22,000 Income from exempt municipal bonds $ 17,000 Depreciation deducted for income tax purposes $ 18,000 Depreciation deducted for financial reporting $ 10,000 What amount should Packer report as taxable income?
Answer:
$127,000
Explanation:
Calculation for the amount to be reported as taxable income
Using formula
Taxable income=[Year 8 Income Statement + Rent received in advance -Income from exempt municipal bonds -(Depreciation deducted for income tax purposes-Depreciation deducted for financial reporting)]
Let plug in the formula
Taxable income=[$130,000+$ 22,000 -$ 17,000 -( $ 18,000 -$ 10,000 )]
Taxable income=$130,000+$ 22,000 -$ 17,000 -$8,000
Taxable income=$127,000
Therefore the amount that Packer should report as taxable income will be $127,000
la) State clearly 1 consumer need which is met by "Canadian Living" magazine. Be careful to remember that needs are "states of deprivation" felt by a person
Pls help
Answer:
Need to perform everyday tasks like cooking.
Explanation:
For example, Canadian Living magazines has a record of often publishing articles related to new cooking recipes that are cheap and affordable.
Many consumers often need information that can help that can assist them in cooking nutritional foods at the best price possible.
Janko Wellspring Inc. has a pump with a book value of $24,000 and a four-year remaining life. A new, more efficient pump, is available at a cost of $45,000. Janko can also receive $8,000 for trading in the old pump. The new pump will reduce variable costs by $10,000 per year over its four-year life. Should the pump be replaced?A. No, because the company will be $3,000 worse off in total.B. Yes, because income will increase by $3,000 per year.C. No, because income will decrease by $10,000 per year.D. No, Janko will record a loss of $16,000 if they replace the pump.E. Yes, because income will increase by $3,000 in total.
Answer: E. Yes, because income will increase by $3,000 in total.
Explanation:
If the Incremental benefit is positive then the pump should be replaced.
Incremental Benefit = Cost saving + cash received for trading in old pump - Cost of new pump
= (10,000 * 4) + 8,000 - 45,000
= $3,000
Over the four years, the income from the decision to replace the old pump will yield an income of $3,000.
Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $47,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $20,000,000 for the golfing season. About 440,000 golfers are expected each year. Variable costs are about $17 per golfer. Mountaintop golf course is a price-taker and won't be able to charge more than its competitors who charge $84 per round of golf. What profit will it earn as a percent of assets
Answer:
47.4%
Explanation:
A. Expected golfers
440,000
B Revenue (440,000 × $84)
$36,960,000
C. Variable cost (440,000 × $17)
$7,480,000
D = B - C Contribution margin
$29,480,000
E Fixed cost
$20,000,000
F = D - E Profit
$9,480,000
G Assets
H = F/G × 100 Return on assets
47.4%
Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2020, and December 31, 2019.
2020 2019 2020 2019
(Duke Company) (Duke Company) (Lord Company) (Lord
Company)
Net sales $1,896,000 $561,000
Cost of goods sold 1,020,048 297,330
Operating expenses 257,856 79,662
Interest expense 7,584 3,927
Income tax expense 54,984 6,171
Current assets 322,500 $310,000 83,500 $78,000
Plant assets (net) 520,800 500,300 139,800 123,000
Current liabilities 64,200 75,600 34,400 29,600
Long-term liabilities 108,400 90,400 28,400 26,000
Common stock, $10 par 498,000 498,000 122,500 122,500
Retained earnings 172,700 146,300 38,000 22,900
Prepare a vertical analysis of the 2017 income statement data for duke company and Lord company.
Answer:
Please attached detailed solution.
Explanation:
• Prepare a vertical analysis of the 2017 income statement data for Luke and Lord company.
Please see as attached detailed solution to the above question.
Truck Co., organized January 7th, year 1, has pretax accounting income of $720,000 and taxable income of $950,000 for the year ended December 31, year 1. The only temporary difference is accrued product warranty costs that are expected to be paid as follows: year 2 $ 150,000 year 3 $ 70,000 year 4 $ 50,000 year 5 $ 120,000 Truck has never had any operating losses (book or tax) and does not expect any in the future. There were no temporary differences in prior years. The enacted income tax rates are 30% for year 1 and 25% for year 2 through year 5. How should the deferred income tax associated with accrued product warranty be recorded in Truck’s December 31, year 1 balance sheet?
Answer:
$97,500 Assets will be recorded
Explanation:
Calculation of deferred tax
Year 2 = $150,000 * 0.25 = 37,500
Year 3= $70,000 * 0.25 = 17,500
Year 4 = $50,000 * 0.25 = 12,500
Year 5 = $120,000 * 0.25 = 30,000
Total deferred tax $97,500
Taxes payable = $285,000 (30% * 95,000
Tax expenses = $187,500
Deferred tax asset = $97,500
Your pro forma income statement shows sales of , cost of goods sold as , depreciation expense of , and taxes of due to a tax rate of . What are your pro forma earnings? What is your pro forma free cash flow?
Answer and Explanation:
The computation is shown below:
Particulars Amount($)
Sales 1,033,000
Less:- Cost of goods sold (503,000)
Gross Profit 530,000
Less:- Depreciation (103,000)
EBIT 427,000
Taxes [40% of 427000] (170,800)
Earnings 256,200
1]Proforma earnings = $256200
2]Proforma free cash flow = Earnings + Depreciation
= $256,200 + $103,000
= $359,200
The proforma earnings is $256200 , and the pro-forma free cash flow is the value of earnings before depreciation. Hence the value is $359,200.
Pro Forma income statementwe are provided with the information about:
Sales = 1,033,000
Cost of goods sold = 503,000
Gross Profit = 530,000
Depreciation = 103,000
We need to find, the net profit,
Net Profit = Gross Profit - Depriciation
Net profit = 530000 - 103000 = 427000
Earnings is the amount after deduction of Tax rate (40%)
= 40% of 427000 = 170,800
Earnings = 427000 - 170800 = 256,200
Therefore the Proforma Earning is 256,200, Proforma free cash flow = Earnings + Depreciation
= $256,200 + $103,000
= $359,200
Your Question is incomplete, the complete question is:
Our proforma income statement shows sales of $1,033,000, cost of goods sold as $503,000, depreciation expense of $103,000, and taxes of $170,800 due to a tax rate of 40%. what are your proforma earnings? what is your proforma free cash flow?
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At the end of a reporting period, a company determines that its ending inventory has a cost of $300,000 and a net realizable value of $230,000. What would be the effect(s) of the adjustment to write down inventory to net realizable value?
Answer:
1.Cost of Goods Sold Increase by $70,000
2.Gross Profit and Net Profit decrease by $70,000
3.Inventory in balance sheet decrease by $70,000
Explanation:
IAS 2 requires inventory to be measured at the lower of cost or net realizable value.
In our case the inventory will be valued at net realizable value of $230,000 because this is lower.
The effect with this is :
1.Cost of Goods Sold Increase by $70,000
2.Gross Profit and Net Profit decrease by $70,000
3.Inventory in balance sheet decrease by $70,000
Morganton Company makes one product and it provided the following information to help prepare the master budget:
A) The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit.
B) 40% of credit sales are collected in the month of the sale and 60% in the following month.
C) The ending finished goods inventory equals 20% of the following month’s unit sales.
D) The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.
E) 30% of raw materials purchases are paid for in the month of purchase and 70% in the following month.
F) The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours.
G) The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $60,000.
If the cost of raw materials purchases in June is $88,880, what are the estimated cash disbursements for raw materials purchases in July?
Answer:
$93,956
Explanation:
Morganton pays 30% of its raw materials purchases during the current month and the rest (70%) is paid in teh following month.
Raw materials purchases for June = $88,880: $88,880 x 70% = $62,216 paid in July.
Raw materials purchases for July = $105,800: $105,800 x 30% = $31,740
total cash disbursements related to raw materials = $93,956
total cost of raw materials for July
budgeted unit sales 10,000
- beginning inventory 2,000 units
+ desired inventory 2,400 units (20% of August's requirements)
units produced = 10,400
x 5 pounds of raw materials = 52,000 pounds
- beginning inventory of raw materials 5,200
+ ending inventory of raw materials 6,100 (10% of August's requirements)
total raw materials purchased 52,900 pounds
x $2 per pound
total raw materials cost for July $105,800
The estimated cash disbursements for raw materials purchases in July are $93,956.
Data and Calculations:
Sales Budget
June July August September
Sales units 8,400 10,000 12,000 13,000
Ending inventory 2,000 2,400 2,600 (20% of 13,000)
Beginning inventory (1,680) (2,000) (2,400) 2,600
Production units required 8,720 10,400 12,200
Raw Materials (pounds = units x 5):
Required for production 43,600 52,000 61,000
Ending inventory 5,200 6,100 (10% of 61,000)
Beginning inventory (4,360) (5,200) (6,100)
Purchases of raw materials 44,440 52,900
Cost of purchases $88,880 $105,800
Cash Payment for Purchases:
30% purchase month $26,664 $31,740
70% following month 62,216
Cash disbursement $93,956
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Using the Rule of 70, if Slowland's GDP grows at 2% per year and Speedyland's GDP grows at 5% per year, how much quicker will Speedyland double its GDP compared to Slowland?
a. Speedyland will double its GDP 35 years quicker than Slowland.
b. Speedyland will double its GDP 21 years quicker than Slowland.
c. Speedyland will double its GDP 14 years quicker than Slowland.
d. Speedyland will double its GDP 3 years quicker than Slowland.
Answer:
b. Speedyland will double its GDP 21 years quicker than Slowland.
Explanation:
According to the rule of 70, it tells about the number of years to double
For Slowlands
= 70 ÷ 2
= 35
For speedyland
= 70 ÷ 5
= 14
So if we take the difference than it comes
= 35 - 14
= 21
Hence, the correct option is b and the same is to be considered
And all other options are wrong
Why would an organization decide to use focal-point reviews instead of the less burdensome anniversary model for performance appraisals? And, in your opinion and based on your HR knowledge, which method is better?
Explanation:
In my opinion, the use of focal point reviews is more advantageous for an organization than the anniversary model for employee performance evaluations, since in the anniversary evaluation there is an annual performance evaluation, carried out on the employee's hiring date or at the end of the year, this model may be more complex due to the difficulty of organizing the evaluation of all employees, since there are different dates for hiring employees, which can mean a problem with the agenda that interferes with the evaluation.
Focal point reviews, on the other hand, are more advantageous because they can be carried out whenever there is an identification of reduced performance of employees, and allow managers to carry out integrated performance evaluations, which gives the advantage of eliminating some type of bias that compromises the fairness of the assessment. In the focal point reviews, there is an employee evaluation based on comparisons between employee performance, which ensures greater efficiency in evaluating and developing actions to improve employee performance.
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Division L Division Q Sales $529,000 $161,000 $368,000 Variable expenses 305,900 99,820 206,080 Contribution margin 223,100 61,180 161,920 Traceable fixed expenses 122,380 33,320 89,060 Segment margin 100,720 $ 27,860 $ 72,860 Common fixed expenses 36,030 Net operating income $ 64,690 The break-even in sales dollars for Division Q is closest to: Multiple Choice $280,790 $223,375 $446,200 $202,409
Answer:
$202,409
Explanation:
Firstly, we will need to calculate Break even in sales dollar for division Q using the formula;
= Division Q fixed cost / contribution margin ratio
Division Q fixed cost = $89,060
But,
Contribution margin ratio = Contribution margin / Sales
Contribution margin ratio = $161,920 / $368,000
Contribution margin ratio = 44%
Therefore, the Break even in sales dollar for Division Q
= $89,060 / 44%
= $202,409
The Break even in sales dollars for Division Q is closest to $202,409
First Financial Corporation is a secured party with a security interest in property owned by Retail Sales Company. Perfection of this security interest may not protect First Financial against the claim of:___________.a. a bank.b. a buyer in the ordinary course of business.c. a subsequent lien creditor.d. a trustee in bankruptcy.
Answer:
d. a trustee in bankruptcy.
Explanation:
Generally secured creditors are the first creditors to be paid, but there are some expenses that need to be paid before any creditor actually receives any money. Bankruptcy expenses, e.g. lawyers, accountants, court, and the trustee. After the bankruptcy costs are paid, then the money is distributed among creditors. First Financial Corporation would be included in the list of creditors to be paid first.
Use the following data to calculate the current ratio. Wildhorse Co. Balance Sheet December 31, 2022 Cash $187000 Accounts payable $208000 Accounts receivable 150000 Salaries and wages payable 26500 Inventory 152000 Mortgage payable 226500 Prepaid insurance 88400 Total liabilities $461000 Stock investments (long-term) 273000 Land 269000 Buildings $314000 Common stock $390900 Less: Accumulated depreciation (60000) 254000 Retained earnings 731500 Goodwill 210000 Total stockholders' equity $1122400 Total assets $1583400 Total liabilities and stockholders' equity $1583400
Answer: 2.46: 1
Explanation:
The Current ratio is used to determine if the current assets of a business can be used to pay off its current liabilities.
Current Ratio = Current assets / Current Liabilities
Current Assets = Cash + Accounts receivable + Inventory + Prepaid insurance
= 187,000 + 150,000 + 152,000 + 88,400
= $577,400
Current Liabilities = Accounts payable + Salaries and wages payable
= 208,000 + 26,500
= $234,500
Current ratio
= 577,400/234,500
= 2.46
On a flight from Boston to Seattle, American reduced its Internet price by $190.00. The sale price was $535.99. What was the original price?
Answer:
the original price is $725.99
Explanation:
Calculation of Original Price
Current Sales Price $535.99
Add Reduction Amount $190.00
Original Price $725.99
On December 31, 2016, Fall Company prepared adjusting entries that included the following items: Depreciation expense: $31,000. Accrued sales revenue: $29,000. Accrued expenses: $12,000. Used insurance: $9,000; the insurance was initially recorded as prepaid. Rent revenue earned: $7,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue. If Fall Company reported pretax income of $120,000 prior to the adjusting entries, how much is Fall's pretax income after the adjusting entries
Answer: $104,000
Explanation:
Pretax income after the Adjustment = Pretax income before adjustments + Accrued sales revenue + Rent revenue earned - depreciation - accrued expenses - used insurance
= 120,000 + 29,000 + 7,000 - 31,000 - 12,000 - 9,000
= $104,000
The above were all period costs and so needed to be accounted for in the income.
On September 15, 2021, Oliver's Mortuary received a $7,200, nine-month note bearing interest at an annual rate of 8% from the estate of Jay Hendrix for services rendered. Oliver's has a December 31 year-end. What adjusting entry will the company record on December 31, 2021
Answer: PLease see answer below
Explanation:
Date Account title and explanation Debit Credit
Dec 31 Interest receivable $168
2021 Interest revenue $168
Calculation
Interest =Principal x time x rate
= 7,200 x 8% x 3.5 /12(15th september to 31st December)
=$168
