Answer:
Charlie's Detective Service
T-accounts:
Cash
Account Titles Debit Credit
Charles Chadwick, Capital $30,369
Office supplies $379
Office furniture 5,320
Professional Fees 2,850
Accounts Payable 3,615
Rent Expense 1,303
Utilities Expense 889
Accounts Receivable 6,442
Charles Chadwick, Drawing 2,823
Balance $25,332
Totals $39,661 $39,661
Accounts Receivable
Account Titles Debit Credit
Professional Fees $9,322
Cash $6,442
Balance $2,880
Office Supplies
Account Titles Debit Credit
Cash $379
Computer Equipment
Account Titles Debit Credit
Accounts Payable $8,118
Office Furniture
Account Titles Debit Credit
Cash $5,320
Accounts Payable
Account Titles Debit Credit
Computer and printer $8,118
Cash $3,615
Balance $4,503
Charles Chadwick, Capital
Account Titles Debit Credit
Cash $30,369
Charles Chadwick, Drawing
Account Titles Debit Credit
Cash $2,823
Professional Fees
Account Titles Debit Credit
Cash $2,850
Accounts Receivable 9,322
Balance $12,172
Rent Expense
Account Titles Debit Credit
Cash $1,303
Utilities Expense
Account Titles Debit Credit
Cash $889
Explanation:
a) Data and Analysis:
(a) Cash $30,369 Charles Chadwick, Capital $30,369
(b) Office supplies $379 Cash $379
(c) Office furniture $5,320 Cash $5,320
(d) Computer and printer $8,118 Accounts Payable $8,118
(e) Cash $2,850 Professional Fees $2,850
(f) Accounts Payable $3,615 Cash $3,615
(g) Accounts Receivable $9,322 Professional Fees $9,322
(h) Rent Expense $1,303 Cash $1,303
(i) Utilities Expense $889 Cash $889
(j) Cash $6,442 Accounts Receivable $6,442
(k) Charles Chadwick, Drawing $2,823 Cash $2,823
On December 31, 2018, the end of its first year of operations, Wildhorse Associates owned the following securities that are held as long- term investments.
Common Stock Shares Cost
C Co. 1,050 $50,400
D Co. 5,090 38,175
E Co. 1,199 25,179
On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the investees. In 2019, the following transactions occurred.
July 1 Received $2 per share semiannual cash dividend on D Co. common stock.
Aug. 1 Received $0.50 per share cash dividend on C Co. common stock.
Sept. 1 Sold 1,020 shares of D Co. common stock for cash at $9 per share.
Oct. 1 Sold 274 shares of C Co. common stock for cash at $54 per share.
Nov. 1 Received $1 per share cash dividend on E Co. common stock.
Dec. 15 Received $0.50 per share cash dividend on C Co. common stock.
31 Received $2.30 per share semiannual cash dividend on D Co. common stock.
At December 31, the fair values per share of the common stocks were C Co. $47, D Co. $7.30, and E Co. $25. These investments should be classified as long-term.
Requried:
Journalize the 2019 transactions
Answer:
July 1
Dr Cash $10,180
Cr Dividend Revenue $10,180
Aug. 1
Dr Cash $525
Cr Dividend Revenue $525
Sept. 1
Dr Cash $9,180
Cr Gain on Sale of Stock Investments $1,530
Cr Stock Investments $7,650
Oct-01
Dr Cash $14,797
Cr Stock Investments $13,152
Cr Gain on Sale of Stock Investments $1,645
Nov 1
Dr Cash $1,199
Cr Dividend Revenue $1,199
Explanation:
Preparation of the journal entries
July 1
Dr Cash (5,090 X $2) $10,180
Cr Dividend Revenue $10,180
Aug. 1
Dr Cash (1,050 X $0.50) $525
Cr Dividend Revenue $525
Sept. 1
Dr Cash [(1,020 X $9) ] $9,180
Cr Gain on Sale of Stock Investments $1,530
($9,180-$7,650)
Cr Stock Investments (274 X $7.5) $7,650
(38,175/5,090=$7.5)
Oct-01
Dr Cash [(274 X $54)] $14,797
Cr Stock Investments (274 X $48) $13,152
($50,400/1,050=$48)
Cr Gain on Sale of Stock Investments $1,645
($14,797-$13,152)
Nov 1
Dr Cash $1,199
Cr Dividend Revenue $1,199
(1,199*$1)
A company currently sells products in the United States and is considering expanding to China or Vietnam. Expanding won't impact the company's sales, revenue or profit in the United States. If the company expands to China there is a 20% chance profit over the next 5 years will be $2,000,000, a 30% chance profit will be $1,000,000 and a 50% chance the company will lose $2,000,000. If the company expands to Vietnam, there is a 70% chance profit over the next 5 years will be $1,000,000 and a 30% chance the company will lose $2,500,000. Using a decision tree, what decision should the company make
Answer: Company should not expand to either.
Explanation:
Find the expected values of expanding to either country and pick the country with the highest expected value:
China:
= ∑(Probability of outcome * Outcome)
= (20% * 2,000,000) + (30% * 1,000,000) + (50% * -2,000,000)
= -$300,000
Vietnam:
= (70% * 1,000,000) + (30% * -2,500,000)
= -$50,000
Both countries result in an expected loss so company should not expand to either of them.
palmer corp is considering the purchase of new equipment the cost savings from the equipment would result in the annual increase income after tax of 133500 the equipment will have an initial cost of 534000 and have a 7 year life is the salvage value estimated to be 9000 what is estimated to be the payback period
Answer:
Payback period= 4 years
Explanation:
The payback period is the estimated length of time in years it takes
the net cash inflow from a project to equate the net cash the initial cost.
Where a project is expected to generate a series of equal annual net cash inflow, the payback period can be calculated as:
The initial invest /Net cash inflow per year
So the payback period for project X
= $534,000/133,500
= 4 years
Payback period= 4 years
A single lease expense is recognized on the income statement for an operating lease. a finance lease. both a finance lease and an operating lease. neither a finance lease or an operating lease.
Answer:
an operating lease.
Explanation:
A lease refers to a contract that rents a land or other properties to another person for a specified period of time and amount of money.
A lease right can be defined as an approval granted by a lessor (landlord) to a lessee for the use of a property such as land over a specific period of time.
A lease for a period of 24 months must be in writing between the lessor (landlord) and the lessee (tenant) to be enforceable by a competent court of law
Generally, a single lease expense is recognized on the income statement for an operating lease.
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
Hence, activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as operating activities.
Michael works as a sales representative for an oilfield supply business in West Texas. He sells highly technical safety equipment to his customers. Michael visits his customers on a regular basis to provide information about new products and to solve technical problems that may arise as his clients use the equipment. For Michael, personal selling works better than other forms of promotion because of _______.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) The value of the product
b) The role of social media
c) The complexity of the product
d) The number of potential customers
And the correct answer is the option C: The complexity of the product.
Explanation:
To begin with, in the area of marketing when it comes to designing and developing a strategy for the company's campaign the for "Ps" are the essentials matter to have in mind. One of them, the "P" for promotion focus on the "how" to sell the product to the target audience and that matter the expertise find varies ways to do it. The personal selling is one of them and in this case actually the most appropiate one due to the complexity of the product that is being sold. Michael is right because this strategy allows the representative, who is an expertise in the product itself, to explain every little detail of the good and how it will adjust to every situation and more. So in order to accomplish the comfort of the client, the presence of the sale's agent is necessary and helpful in this case.
Holden is a people person. He is very good at working with customers and keeping a positive attitude. He has taken a couple classes on supervising money matters and typically works on a computer tracking customer information. Which career does Holden most likely have?
Logistics Planning and Management Services
Sales and Services
Transportation Operations
Facility and Mobile Equipment Maintenance
Answer:b
Explanation:
Trust
Answer:
B, Sales and Services
Explanation:
Sales and services workers usually have to talk to customers and help them track their packages/orders/customer info. That is what it says Holden is doing, so it should be B. Have a good day (;
George, an unskilled worker in the 1930s, toiled 10 hours a day on an assembly line. His hours were long, his wages were low, and his working conditions were unsafe and unpleasant. George would probably have been more sympathetic to the views of John L. Lewis than to those of Samuel Gompers.
a. True
b. False
Answer: True
Explanation:
The main reason that can be attributed to AFL not recognizing CIO when it was still growing was due to the fact that there was a disagreement over the inclusion of craft unions and industrial unions in the AFL which Samuel Gompers was the leader and membership were only to skilled workers.
Later, John Lewis, whom was the president of United Mine Workers, made a proposal stating that unskilled workers should be included in the industrial unions and this was rejected which led to Lewis breaking with AFL and then went to form CIO.
REITs pay dividends in order to retain their favorable tax status. As the next chapter on stock explains, corporate dividends are made from earnings. REIT dividends often are not made from earnings but the distributions are made from funds from operations (FFO). REIT accounting earnings are adjusted for noncash expenses such as deprecia-tion to determine funds from operations. In addition, a REIT may sell a property and distribute the proceeds. For these reasons, financial analysts often use FFO instead of earnings to analyze a REIT. Distributions are often more highly correlated with per-share funds from operation than they are with earnings per share (EPS). Consider the following FFO and EPS for Washington Real Estate Trust:
Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Distributions $1.16 1.23 1.31 1.39 1.47 1.55 1.60 1.64 1.68 1.72 1.73 1.74 1.74 1.47 1.20 1.20
FFO
$1.57 1.79 1.96 1.97 2.04 2.05 2.07 2.12 2.31 2.12 2.06 1.96 1.95 1.84 1.69 1.51
EPS
$1.24 1.26 1.38 1.32 1.13 1.09 1.84 0.88 1.34 0.67 0.71 0.60 1.58 0.35 0.55 1.67
To verify that the dividend distribution is more strongly correlated with FFO than with EPS, compute the correlation coefficients relating the distributions to FFO and to EPS.
Answer:
Correlation coefficients relating the distributions to FFO = 0.8393
Correlation coefficients relating the distributions to EPS = –0.0880
Explanation:
Let X represents distributions, Y represents FFO, and, Z represents EPS.
Note: See the attached excel file for the calculations of Means of X, Y and Z as well as other values.
Therefore, we have:
Correlation coefficients relating the distributions to FFO = (Total of (X - Mean of X) * (Y - Mean of Y)) / ((Total of (X - Mean of X)^2) * (Total of (Y - Mean of Y)^2))^0.5 = 0.7529 / (0.8554 * 0.9408)^0.5 = 0.8393
Correlation coefficients relating the distributions to EPS = (Total of (X - Mean of X) * (Z - Mean of Z)) / ((Total of (X - Mean of X)^2) * (Total of (Z - Mean of Z)^2))^0.5 = –0.1391 / (0.8554 * 2.9200)^0.5 = –0.0880
A company is planning to purchase a machine that will cost $31,200 with a six-year life and no salvage value. The company uses straight-line depreciation. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine
Answer:
44.87%
Explanation:
Note: Missing word have been attached as picture below
Average Investment = (Initial Investment + Scrap Value) / 2
Average Investment = [$31,200 + $0] / 2
Average Investment = $31,200/2
Average Investment = $15,600
Accounting Rate of Return = Net Income/Average Investment*100
Accounting Rate of Return = $7,000/$15,600 * 100
Accounting Rate of Return = 0.44871795 * 100
Accounting Rate of Return = 44.87%
On January 1, 2022, Blue Company issued $3,400,000 face value, 7%, 10-year bonds at $3,650,227. This price resulted in a 6% effective-interest rate on the bonds. Blue uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. (a) Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. The issuance of the bonds on January 1, 2022. 2. Accrual of interest and amortization of the premium on December 31, 2022. 3. The payment of interest on January 1, 2023. 4. Accrual of interest and amortization of the premium on December 31, 2023.
Answer and Explanation:
The journal entries are shown below:
On 2022
For Jan 1
Cash Dr $3,650,227
To Premium on bond payable $250,277
To bond payable $3,400,000
(Being bond payable is issued for cash)
For Dec 31
Interest expense ($3,650,227 × 6%) $219,014
Premium on bond payable $18,986
To Interest payable ($3,400,000 ×7%) $238,000
(Being interest expense is recorded)
On 2023
For Jan 1
Interest payable $238,000
To Cash $238,000
(Being cash paid)
Interest expense ($3,650,227 - $18,986) × 6%) $217,874
Premium on bond payable $20,126
To Interest payable ($3,400,000 ×7%) $238,000
(Being interest expense is recorded)
Firm Aay operates a pool hall in Boom Town. Business has been very profitable. However, there are dark clouds on the horizon. Firm Bee is considering entering the pool hall market in Boom Town. The profits of Aay are 15 if it is a monopoly; if Bee enters and Aay accommodates and shares the market the duopoly profits are 5 for each firm; is Bee enters and Aay launches a price war, both firms earn -1.
a) Draw the game tree for this scenario and determine the subgame perfect equilibrium (SPE).
b) What if launching a price war involves not only charging a low price, but printing flyers to inform the public of the great deals available? If there is a price war, both firms print flyers, and the net result of the price war is -1 for each firm (that is, the -1 takes into account the cost of printing the flyers.) Assume that Aay can have flyers printed up prior to Bee's entry decision and that the printing cost is $8. Draw the game tree for this scenario and determine the subgame perfect equilibrium.
c) What does your answer to (b) imply about the relationship between sunk costs, firstmover advantages, and entry deterrence? plz type down u answer
Solution :
a). The game tree is attached below. In the game tree, the (SPE) or subgame perfect equilibrium is for Bee firm to enter and Aay firm to accommodate.
b). If launching the price war consists of not only charging low price, but also printing flyers in order to inform the public.
The game tree is attached below.
In the game tree, it can be explained that :
Aay has a priority printing, cost of printing is 8. If he prints and Bee does not enter equilibrium will be (15-8) = 7, 0. Profit if Bee does not enter.
It is given that if Aay enters and Bee enters, there will be price war = -1, -1
or they will accommodate = (5, 8, 5). Here the profit while accommodating is 5 and printing cost is 3. Therefore, (-3, 5)
c). Sunk cost such as that of printing allows Aay to make a credible threat to engage in a prior war and thus deny entry of Bee.
Now when he had first move advantage and make investment in flyers he could make a credible threat and deter entry of Bee. If he did not have the advantage, his treat would not have much of an effect.
Erik Cartman just took a new position with Colorado Research, Inc. Erik’s first customer, the president of a local bank, wanted a bank image study to be conducted measuring not only the client’s banks’ image, but that of his competitors as well. In designing the research project, Erik talked to several of his friends one night about how they viewed their banks. Erik charged the client for this and billed it as "Exploratory Research NFocus Group." The next day Erik tried to remember most of what his friends had told him. Some of the issues were "closeness to home" of branch locations, "cool online banking," and "friendly tellers." Erik took these issues, made up some of his own and put them into a semantic differential scale format. After the research study, Erik wrote a report and referred to the semantic differential scale he devised as a "Standard Marketing Research Scale to Measure the Construct of Bank Image." What Erik did was:___________
A) correct; he used exploratory research to generate most of the items for his
measurement of bank image
B) correct; although he used some of his own opinions, they were based upon experience and he did make use of a focus group
C) incorrect; the measurement of bank image was incorrect as bank image should be measured only by using Likert scales
D) incorrect; we do not know if the scale Mr. Cartman devised was valid or reliable, but he was unethical in presenting the measurement as"standard marketing research"
E) correct; Erik saved considerable time and money by creating his own measurement of the construct
Answer: D. Incorrect; we do not know if the scale Mr. Cartman devised was valid or reliable but he was unethical
in presenting the measurement as "standard marketing research.
Explanation:
Based on the information given in the question, the correct option is D "we do not know if the scale Mr. Cartman devised was valid or reliable but he was unethical in presenting the measurement as "standard marketing research".
He was unethical as he didn't tell his friends that he was collecting the information from them for a research purpose. Also, making up some of the issues regarding his research is not appropriate.
Therefore, the correct option is D.
During January 2020, the first month of operations, a consulting firm had following transactions: Issued common stock to owners in exchange for $46,000 cash. Purchased $11,500 of equipment, paying $3,450 cash and signing a promissory note for $8,050. Received $20,700 in cash for consulting services performed in January. Purchased $3,450 of supplies on account; all of the supplies were used in January. Provided consulting services on account in the amount of $36,800. Paid $1,725 on account. Paid $6,900 to employees for work performed during January. Received a bill for utilities for January of $7,800; the bill remains unpaid. What is the total expenses that will be reported on the income statement for the month ended January 31
Answer:
The total expenses that will be reported on the income statement for the month ended January 31 are:
= $18,150.
Explanation:
a) Data and Analysis:
Cash $46,000 Common Stock $46,000
Equipment $11,500 Cash $3,450 Note Payable $8,050
Cash $20,700 Service Revenue $20,700
Supplies Expense $3,450 Cash $3,450
Accounts receivable $36,800 Service Revenue $36,800
Accounts Payable $1,725 Cash $1,725
Salaries Expenses $6,900 Cash $6,900
Utilities Expense $7,800 Utilities Payable $7,800
Expenses for January:
Supplies Expense $3,450
Salaries Expenses $6,900
Utilities Expense $7,800
Total Expenses $18,150
Scott was a member of the seven-person board of directors of Buffalo Corporation. Officers of that corporation were considering a large purchase of new equipment to begin production of a completely new product line. The board of directors had not been consulted about the new venture, but Scott found out about the plan and objected to it being implemented. He sought to inspect the corporate books and records to gain factual information supportive of his position. The officers refused his inspection request, asserting that Scott had no management function or power. Under these circumstances, Scott: _________
a. has the right to inspect corporate books only if he is also a majority shareholder.
b. is barred from examination of the books and records of the corporation under the doctrine of respondeat superior.
c. has the right to inspect corporate books and records, as information regarding the corporation and its affairs is essential to perform his duties.
d. is barred from examination of the books and records of the corporation under the business judgment rule.
Answer: has the right to inspect corporate books and records, as information regarding the corporation and its affairs is essential to perform his duties.
Explanation:
Based on the information given, it is vital for Scott to inspect corporate books and records, as information regarding the corporation and its affairs is essential to perform his duties.
Since Scott is part of the people who are considering a large purchase of new equipment to begin production of a completely new product line, he therefore needs to check out the corporate books and records in order to gain factual information which will support his stance on the matter.
Therefore, the correct option is C.
The following transactions occurred at several different businesses and are not related. Post the following transactions into the appropriate T-accounts
a. Serena Hamilton, an owner, made an additional investment of $42,000 in cash.
b. A firm purchased equipment for $20,000 in cash.
c. A firm sold some surplus office furniture for $3,400 in cash.
d. A firm purchased a computer for $3,700, to be paid in 60 days.
e. A firm purchased office equipment for $22,400 on credit.
f. The amount is due in 60 days. James Taylor, owner of Taylor Travel Agency, withdrew $12,000 of his original cash investment.
g. A firm bought a delivery truck for $38,500 on credit; payment is due in 90 days.
h. A firm issued a check for $7,200 to a supplier in partial payment of an open account balance
Answer:
T-accounts:
a. Cash Account
Account Titles Debit Credit
Common Stock $42,000
Common Stock
Account Titles Debit Credit
Cash $42,000
b. Equipment
Account Titles Debit Credit
Cash $20,000
Cash
Account Titles Debit Credit
Equipment $20,000
c. Cash
Account Titles Debit Credit
Office Furniture $3,400
Office Furniture
Account Titles Debit Credit
Cash $3,400
d. Computer
Account Titles Debit Credit
Accounts payable $3,700
Accounts payable
Account Titles Debit Credit
Computer $3,400
e. Office Equipment
Account Titles Debit Credit
Accounts payable $22,400
Accounts payable
Account Titles Debit Credit
Office Equipment $22,400
f. James Taylor, Capital
Account Titles Debit Credit
Cash $12,000
Cash
Account Titles Debit Credit
James Taylor,
Capital $12,000
g. Delivery Truck
Account Titles Debit Credit
Accounts payable $38,500
Accounts payable
Account Titles Debit Credit
Delivery Truck $38,500
h. Accounts payable
Account Titles Debit Credit
Cash $7,200
Cash
Account Titles Debit Credit
Accounts payable $7,200
Explanation:
a) Data and Analysis:
a. Cash $42,000 Common Stock $42,000
b. Equipment $20,000 Cash $20,000
c. Cash $3,400 Office Furniture $3,400
d. Computer $3,700 Accounts payable $3,400
e. Office Equipment $22,400 Accounts payable $22,400
f. James Taylor, Capital $12,000 Cash $12,000
g. Delivery Truck $38,500 Accounts payable $38,500
h. Accounts payable $7,200 Cash $7,200
The following data are accumulated by Geddes Company in evaluating the purchase of $150,000 of equipment, having a four-year useful life:
Net Income Net Cash Flow Year
1 $42,500 $80,000 Year
2 27,500 65,000 Year
3 12,500 50,000 Year
4 2,500 40,000
Present Value of $1 at Compound Interest
Year 6% 10% 12% 15% 20%
1 0.943 0.909 0.893 0.870 0.833
2 0.890 0.826 0.797 0.756 0.694
3 0.840 0.751 0.712 0.658 0.579
4 0.792 0.683 0.636 0.572 0.482
5 0.747 0.621 0.567 0.497 0.402
6 0.705 0.564 0.507 0.432 0.335
7 0.665 0.513 0.452 0.376 0.279
8 0.627 0.467 0.404 0.327 0.233
9 0.592 0.424 0.361 0.284 0.194
10 0.558 0.386 0.322 0.247 0.162
a. Assuming that the desired rate of return is 15%, determine the net present value for the proposal.
b. Would management be likely to look with favor on the proposal?
Answer:
$24,460.50
Yes. this is because the NPV is positive
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-150,000
Cash flow in year 1 = $80,000
Cash flow in year 2 = $65,000
Cash flow in year 3 = $50,000
Cash flow in year 4 = $40,000
I = 15%
NPV = $24,460.50
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
A product has annual demand of 10,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what holding cost per unit per year will enable the desired production cycle? d = 40 per day (250 days per year), p = 200 units per day, S = $7.20 per order, and Q = 20 (demand for four hours, half a day). $18.00 $40.00 $400.00 $45.00 $450.00
Answer:
Based on the data, the holding cost per unit per year that will enable the desired production cycle is:
= $18.00.
Explanation:
a) Data and Calculations:
Annual demand of the product = 10,000 units
Demand per day, d = 40 (10,000/250) units
Given days in a year = 250 days
Production, p per day = 200 units
Ordering cost, S = $7.20 per order
Q (demand for four hours or half a day) = 20 units (40/2) following a four-hour cycle
Number of orders = 10,000/20 = 500
Total ordering costs = $3,600 (500 * $7.20)
Since EOQ = Q = 20 units
20 = Square root of (2*D*S)/H
Where:
D = Annual demand
S= Ordering cost
H = Holding cost
20 = Square root of (2 * 10,000 * $3,600)/H *10,000
20 = Square root of 72,000,000/(H * 10,000)
Substituting H with $18
= Square root of 72,000,000/180,000
= Square root of 400
= 20
Production and sales estimates for April for Ibis Co. are as follows: Estimated inventory (units), April 1 9,000 Desired inventory (units), April 30 8,000 Expected sales volume (units): Territory A 3,500 Territory B 4,750 Territory C 4,250 Unit sales price $20 The budgeted total sales for April is a.$230,000 b.$250,000 c.$270,000 d.$200,000
Answer:
b.$250,000
Explanation:
The computation of the budgeted total sales is shown below:
= (Expected sales volume in territory A + Expected sales volume in territory B + Expected sales volume in territory C)
= (3,500 + 4,750 + 4,250) × $20
= $250,000
hence, the budgeted total sales for April month is $250,000
Therefore, the option b is correct
Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected Plan
Benefit Assets
Obligation Value
2013 $2,000,000 $1,900,000
2014 2,400,000 2,500,000
2015 2,950,000 2,600,000
2016 3,600,000 3,000,000
The average remaining service life per employee in 2013 and 2014 is 10 years and in 2015 and 2016 is 12 years. The net gain or loss that occurred during each year is as follows: 2013, $280,000 loss; 2014, $90,000 loss; 2015, $11,000 loss; and 2016, $25,000 gain.
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Year
Minimum Amortization of Loss
2013 $
2014 $
2015 $
2016 $
Answer:
Year Minimum Amortization of Loss
2013 $0
2014 $3,000
2015 $ $6,000
2016 $1,000
Explanation:
Computation of the amount of net gain or loss amortized and charged to pension expense in each of the four years.
Corridor and Minimum Loss Amortization
Year 2013
Projected Benefit Obligation (a) $2,000,000
Plan Assets $1,900,000
10%Corridor 200,000
(10%×$2,000,000)
AccumulatedOCI (G/L) (a) $0
Minimum Amortization of loss $0
(a) As of the beginning of the year
Year 2014
Projected Benefit Obligation (a) $2,400,000
PlanAssets $2,500,000
10%Corridor 250,000
(10%×$2,500,000)
AccumulatedOCI (G/L) (a) $280,000
Minimum Amortization of loss $3,000 (b)
(b) ($280,000-$250,000)÷10 years
=$30,000÷10 years
=$3,000
Year 2015
Projected Benefit Obligation (a) $2,950,000
PlanAssets $2,600,000
10%Corridor 295,000
(10%×$2,950,000)
AccumulatedOCI (G/L) (a) $367,000(c)
Minimum Amortization of loss $6,000 (d)
(c) ($280,000-$3,000+$90,000)
=$367,000
(d) ($367,000-$295,000)÷12 years
=$72,000÷12 years
=$6,000
Year 2016
Projected Benefit Obligation (a) $3,600,000
PlanAssets $3,000,000
10%Corridor 360,000
(10%×$3,600,000)
AccumulatedOCI (G/L) (a) $372,000(e)
Minimum Amortization of loss $1,000 (f)
(e) $367,000-$6,000+$11,000
=$372,000
(f) ($372,000-$360,000)÷12 years
=$12,000 ÷12 years
=$1,000
Therefore the amount of net gain or loss amortized and charged to pension expense in each of the four years are:
Year Minimum Amortization of Loss
2013 $0
2014 $3,000
2015 $ $6,000
2016 $1,000
A manager has up to $190,000 available to invest in new construction equipment for the company. The manager must purchase a new dump truck and does not have a need for a second dump truck. The dumping trailer can only be purchased along with a dump truck. From the following list of possible equipment, identify all of the mutually exclusive alternatives and identify which of the alternatives are not acceptable.
No. Description Cost ($)
1 Loader 125,000
2 Dump Truck 170,000
3 Dump Truck 265,000
4 Dumping Trailer for the Dump Truck 25,000
Answer:
a. Mutually exclusive alternatives are
No. Description Cost ($)
2 Dump Truck 170,000
3 Dump Truck 265,000
b. The alternatives that are not acceptable are:
No. Description Cost ($)
1 Loader 125,000
4 Dumping Trailer for the Dump Truck 25,000
Explanation:
a. Mutually exclusive alternatives imply alternatives that cannot occur together. In relation to this question, since the manager must purchase a new dump truck and does not have a need for a second dump truck, that means that two trucks are mutually exclusive. Therefore, mutually exclusive alternatives are
No. Description Cost ($)
2 Dump Truck 170,000
3 Dump Truck 265,000
b. Alternative are not acceptable if they do not meet the conditioned specified. In relation to this question, since the dumping trailer can only be purchased along with a dump truck it means that Dumping Trailer for the Dump Truck is not acceptable. Also, since Loader is not a trcuk, that means it is not also acceptable. Therefore, the alternatives that are not acceptable are:
No. Description Cost ($)
1 Loader 125,000
4 Dumping Trailer for the Dump Truck 25,000
Your coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2060, assuming they appreciate at a 5.7% annual rate
Answer:
$19,909.88
Explanation:
Calculation to determine how much will your collection be worth when you retire in 2060,
Future value = Present value x (1 + r )n
Present value = 50
r = 5.7% or 0.057
n = 2060- 1952= 108
Plugging these values in the above mentioned formula, we shall get:
Future value= $ 50 x ( 1 + 0.057 )^108
Future value= $ 50 x ( 1 +.057 )^108
Future value= $19,909.88 Approximately
Therefore how much will your collection be worth when you retire in 2060 is $19,909.88
Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Year 1: $10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends in arrears for preferred stock for the second year. a.$10,000 b.$25,000 c.$30,000 d.$0
Answer:
Option b is correct
Arrears preference dividends = $25,000
Explanation:
Preference shareholders are entitled to a fixed amount of dividends.
Cumulative preference shares: Cumulative simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year.
$
Preferred dividend in year = 2%× 100× 20,000= 40,000
Preferred dividend in year 2 = 2%× 100× 20,000= 40,000
Total dividend accrued to preference shares 80,000
Less total dividend paid in year 1 and 2 55,000
Arrears preference dividends 25,000
Arrears preference dividends = $25,000
Sheffield Corp. had accounts receivable of $250,000 on January 1, 2019. The only transactions that affected accounts receivable during 2019 were net credit sales of $5,225,000, cash collections of $5,155,000, and accounts written off of $20,000.
Answer:
300000is the answer make me branlist
The Bountiful Bakery is considering hiring another pastry chef. The bakery knows the average product of its chefs currently is 15 dozen croissants per day. It also believes that the next chef hired will produce an extra 12 dozen croissants per day. A dozen croissants sell for $30. The bakery should hire another worker:
Answer: only if the new chef's daily wage is $360 or less.
Explanation:
It should be noted that the decision with regards to hiring a new chef will be made by the company when the marginal value product is more than the marginal cost.
The marginal value product here will be: = (12 × $30) = $360. Therefore, The bakery should hire another worker only if the new chef's daily wage is $360 or less.
Assume that Thomas can afford to buy as many candy bars and ice cream cones as he wants. He would continue to consume both candy bars and ice cream until the
Answer:
Marginal utility of each becomes negative
Explanation:
Utility is defined as the level of satisfaction that a person gets from consuming a product.
The person keeps on consuming the item until the level of marginal utility for the product becomes less than zero.
That is there is no satisfaction anymore in consuming the product.
In the given instance Thomas will continue to consume both candy bars and ice cream until the level of satisfaction (marginal utility) is now less than zero or negative
Question: According to a Honda press release on October 23, 2006, sales of the fuel-efficient four-cylinder Honda Civic rose by 7.1% from 2005 to 2006. Over the same period, according to data from the U.S. Energy Information Administration, the average price of regular gasoline rose from $2.27 per gallon to $2.57 per gallon. Using the midpoint method, calculate the cross-price elasticity of demand between Honda Civics and regular gasoline. According to your estimate of the cross-price elasticity, are the two goods gross complements or gross substitutes
Explanation:
because im a grade 3Golden Arch Company uses the periodic inventory system. It has compiled the following information in order to prepare the financial statements at December 31, 2019: Gross sales during 2019 $2,000,000 Sales returns and allowances during 2019 50,000 Beginning inventory, January 1, 2019 100,000 Ending inventory, December 31, 2019 120,000 Purchases during 2019 750,000 Required: Calculate the Cost of goods sold and Gross profit for the company during 2019.
Answer:
See below
Explanation:
Given the information above, cost of goods sold and the gross profit is calculated as;
Cost of goods sold for the company during 2019
= Beginning inventory + Net purchases - Ending inventory
= Beginning inventory + (Purchases - Purchase return) - Ending inventory
= $100,000 + ($750,000 - $0) - $120,000
= $100,000 + $750,000 - $120,000
= $730,000
Gross profit for the company during 2019
= Net Sales - Cost of goods sold
= (Gross sales - Sales return and allowances) - Cost of goods sold
= ($2,000,000 - $50,000) - $730,000
= $1,950,000 - $730,000
= $1,220,000
Bryant Company has a factory machine with a book value of $93,700 and a remaining useful life of 7 years. It can be sold for $34,700. A new machine is available at a cost of $378,500. This machine will have a 7-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $605,900 to $457,900. Prepare an analysis showing whether the old machine should be retained or replaced
Answer:
Retain Replace Net income
Increase/Decrease
Variable manufacturing costs 4241300 3205300 1036000
New machine cost 0 378500 -378500
Sell old machine 0 -34700 34700
Total 4241300 3549100 692,200
Conclusion: The old factory machine should be replaced as its net income is lesser
Workings
Variable manufacturing costs
a. Retain Equipment = 605900*7 = 4241300
b. Replace Equipment =457900*7 = 3205300
Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 8,020 units. Additional information is as follows: Variable product cost per unit $ 31 Variable administrative cost per unit 41 Total fixed overhead 48,100 Total fixed administrative 16,060 Using the total cost method what price should Galla charge
Answer:
Selling price= $100
Explanation:
Giving the following information:
Variable product cost per unit $31
Variable administrative cost per unit 41
Total fixed overhead 48,100
Total fixed administrative 16,060
Markup= 25%
Number of units= 8,020
First, we need to calculate the unitary fixed cost:
Total fixed cost= 48,100 + 16,060= $64,160
Unitary total fixed cost= 64,160/8,020= $8
Now, the total unitary cost:
Total unitary cost= 8 + 31 + 41= $80
Finally, the selling price:
Selling price= 80*1.25
Selling price= $100
which are possible employers of the financial career cluster? check ALL that apply
private company
government
nonprofit organization
bank
stock market
Answer:
private company
government
nonprofit organization
bank
Explanation: