Answer:
Instructions are below.
Explanation:
Giving the following information:
Production= 6,370 cellos
The Budget production= 5,500.
The company paid its workers an average of $15 per hour, which was $1 higher than the standard labor rate.
The production manager budgets four direct labor hours per cello. During the year, a total of 25,000 direct labor hours were worked.
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (4*6,370 - 25,000)*14
Direct labor time (efficiency) variance= $6,720 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (14 - 15)*25,000
Direct labor rate variance= $25,000 unfavorable
The following information is available for Sage Hill Corporation for the year ended December 31, 2022.
Beginning cash balance $43,000
Accounts payable decrease 3,500
Depreciation expense 75,000
Accounts receivable increase 8,700
Inventory increase 12,100
Net income 337,000
Cash received for sale of land at book value 43,000
Sales revenue 740,000
Cash dividends paid 11,800
Income tax payable increase 4,400
Cash used to purchase building 145,000
Cash used to purchase treasury stock 33,900
Cash received from issuing bonds 258,000
Required:
1. Prepare a statement of cash flows using the Indirect method. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).)
Answer:
Statement of cash flows for the year ended December 31, 2022
Cash flow from Operating Activities
Net income 337,000
Adjustment for Non - Cash Items :
Depreciation expense 75,000
Adjustment for Working Capital Items :
Accounts payable decrease (3,500)
Accounts receivable increase (8,700)
Inventory increase (12,100)
Income tax payable increase 4,400
Net Cash from Operating Activities 392,100
Cash flow from Investing Activities
Cash received for sale of land at book value 43,000
Cash used to purchase building (145,000)
Net Cash from Investing Activities (102,000)
Cash flow from Financing Activities
Cash dividends paid (11,800)
Cash used to purchase treasury stock (33,900)
Cash received from issuing bonds 258,000
Net Cash from Financing Activities 212,300
Movement During the year 502,400
Cash and Cash Equivalents at Beginning of the year 43,000
Cash and Cash Equivalents at End of the year 545,400
Explanation:
Prepare the Cash flow Statement under the following headings :
Cash flow from Operating ActivitiesCash flow from Investing ActivitiesCash flow from Financing ActivitiesAutomobile firms can use their inputs to make hybrid cars or "regular" (non-hybrid) cars. If the equilibrium price of hybrid cars rises sharply, the resulting shift in the supply curve for "regular" cars will cause:
Answer: a) an increase in the Equilibrium price of "regular" cars.
Explanation:
It is stated that the automobile companies use their inputs to make either the hybrid cars or the regular cars.
If the price of the Hybrid cars rises sharply, Automobile companies will make more Hybrid cars so as to take advantage of the situation and make more profit.
This would reduce the amount of inputs that they have available for regular cars and so they will make less regular cars.
As this supply of regular cars decreases,the supply curve will shift to the left and the price will increase to cater for this reduction in supply.
Ben, an accountant for AirLift, Inc., a ride service, learns of undisclosed company plans to distribute a new app. Ben buys 10,000 shares of AirLift stock. He reveals the company plans to Carly, who buys 5,000 shares. Carly tells Don, who tells Erwin, and each buys 1,000 shares. They know that Carly got her information from Ben. When AirLift publicly announces its new app, Ben, Carly, Don, and Erwin sell their stock for a profit. If Ben is liable under the Securities Exchange Act of 1934, it will be because the information on which he based his purchase of AirLift stock was:
A. a forward-looking forecast.B. not material.C. not yet public.D. not yet true.
Answer:
C. not yet public.
Explanation:
Securities Exchange Act: The term "Securities Exchange Act" is also denoted as SEA and was created during 1934, it was developed to govern or carry out "securities transactions" based on the less manipulation or fraud, secondary market, ensures huge financial accuracy and transparency and after issues.
Basically, it refers to the law that is responsible for governing the "Secondary trading securities" in the USA. It also prevents unfair and inequitable practices on specific market and exchange.
In the question above, the correct option is C.
Answer:
C. not yet public.
Explanation:
Securities Exchange Act 1934 is a legal framework governing secondary trading of securities in USA.
Ben is liable under Securities Exchange Act of 1934, as he has leaked the 'not yet public' information for personal motives. His act of disclosing about app launch & buying shares then (for reselling further after launch) : is a case of Insider Trading. Insider Trading refers to deliberate disclosure of company's confidential information, for selfish motives accomplishment.
The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows.
TYBALT CONSTRUCTION
Adjusted Trial Balance
December 31, 2017
No. Account Title Debit Credit
101 Cash $ 6,500
104 Short-term investments 22,000
126 Supplies 8,000
128 Prepaid insurance 8,300
167 Equipment 50,000
168 Accumulated depreciation—Equipment $ 25,000
173 Building 162,000
174 Accumulated depreciation—Building 54,000
183 Land 68,020
201 Accounts payable 16,500
203 Interest payable 3,000
208 Rent payable 3,200
210 Wages payable 2,400
213 Property taxes payable 1,200
233 Unearned professional fees 7,400
251 Long-term notes payable 68,000
301 O. Tybalt, Capital 132,800
302 O. Tybalt, Withdrawals 10,000
401 Professional fees earned 100,000
406 Rent earned 15,500
407 Dividends earned 2,000
409 Interest ear 2,400
606 Depreciation expense—Building 11,880
612 Depreciation expense—Equipment 7,500
623 Wages expense 28,500
633 Interest expense 4,800
637 Insurance expense 7,300
640 Rent expense 11,600
652 Supplies expense 7,100
682 Postage expense 3,500
683 Property taxes expense 3,100
684 Repairs expense 7,800
688 Telephone expense 2,100
690 Utilities expense 3,400
Totals $ 433,400 $ 433,400
O. Tybalt invested $6,500 cash in the business during year 2017 (the December 31, 2016, credit balance of the O. Tybalt, Capital account was $126,300). Tybalt Construction is required to make a $8,500 payment on its long-term notes payable during 2018.
Required:
1a. Prepare the income statement for the calendar-year 2017.
1b. Prepare the statement of owner's equity for the calendar-year 2017.
1c. Prepare the classified balance sheet at December 31, 2017.
2. Prepare the necessary closing entries at December 31, 2017.
Answer and Explanation:
According to the scenario, The presentation are presented below:
1a. Income Statement
Particular Amount ($)
Professionals fees earned 100,000
Add - Rent earned 15,500
Add - Dividends Earned 2,000
Add - Interest earned 2,400
Total Revenue 119,900
Less - Building depreciation expenses 11,880
Less - Equipment depreciation expenses 7,500
Less - Wages expenses 28,500
Less - Interest expenses 4,800
Less - Insurance expenses 7,300
Less - Rent expenses 11,600
Less - Repair expenses 7,800
Less - Property taxes expenses 3,100
Less - supplies expenses 7,100
Less - Telephone expenses 2,100
Less - Postage expenses 3,500
Less - Utilities expenses 3,400
Net income 21,320
1 b Statement of Owner’s Equity
Particular Amount ($)
Tybalt capital on 31 Dec. 2016 126,300
Add-Additional invested cash 6,500
Add - Net income 21,320
Less - withdrawals 10,000
Tybalt capital on 31 Dec. 2017 144,120
1 c Balance Sheet
Assets Amount ($) Liabilities Amount ($)
Cash 6,500 Accounts payable 16,500
Short term
investment 22,000 Interest payable 3,000
supplies 8,000 Rent payable 3,200
Prepaid insurance 8,300 Wages payable 2,400
Equipment
($50,000-$25,000 25,000 Property taxes payable 1,200
Building
($162,000-$54,000) 108,000 Unearned professional fees 7,400
Land 68,020 Long term notes payable 68,000
Tybolt capital on 31 Dec. 2017 144,120
Total 245,820 Total 245,820
2.
Journal Entry
31, Dec. Rent earned A/c Dr. $100,000
Professional fees earned A/c Dr. $15,500
Dividends earned A/c Dr. $2,000
Interest earned A/c Dr. $2,400
To Income summary A/c $119,900
(Being the closing of revenue account is recorded)
31 Dec. Income summary A/c Dr. $98,580
To Building Depreciation expenses A/c $11,880
To Equipment Depreciation expenses A/c $7,500
To Wages expenses A/c $28,500
To Interest expenses A/c $4,800
To Insurance expenses A/c $7,300
To Rent expenses A/c $11,600
To Supplies expenses A/c $7,100
To Postage expenses A/c $3,500
To Property taxes expenses A/c $3,100
To Repairs expenses A/c $7,800
To Telephone expenses A/c $2,100
To Utilities expenses A/c $3,400
(Being the closing of expense account is recorded)
31 Dec. Income Summary A/c Dr. $21,320
To Tybalt capital A/c $21,320
(Being the closing of income summary is recorded)
31 Dec. Tybalt capital A/c Dr. $10,000
To Tybalt withdrawals A/c $10,000
(Being the closing of withdrawals account is recorded)
Mr Sinclair has diabetes and heart trouble and is generally satisfied with the care he has received under original Medicare, but he would like to know more about Medicare advantage special needs plans
.
Answer:
SNPs have special programs for enrollees with chronic conditions, like Mr. Sinclair, and they provide prescription drug coverage that could be very helpful as well.
Explanation:
Chronic conditions and the fact that the customer has more than 1 chronic condition may qualify the beneficiary for a Special Needs Plan which may provide better health coverage for these medical conditions. (There are populations of beneficiaries who would benefit from these plans.).
SNPs have special programs for enrollees with chronic conditions, like Mr. Sinclair, and they provide prescription drug coverage that could be very helpful as well.
A Special Needs Plan, which may offer superior health coverage for various medical issues, may be available to beneficiaries with chronic diseases or multiple chronic ailments. These strategies might be advantageous to certain beneficiary demographics.
Individuals with chronic or debilitating diseases can enroll in Medicare Special Needs Plans (SNPs), a kind of Medicare Advantage Plan. These programs mandate that Medicare SNP-eligible individuals get treatment and services from medical professionals in such networks. SNP networks come in a variety of sizes and target demographics.
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Gains from trade
Consider two neighboring island countries called Felicidad and Arcadia. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor.
Jeans Rye
Country
(Pairs per hour of labor) (Bushels per hour of labor)
Felicidad 5 20
Arcadia 8 16
Initially, suppose Arcadia uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye while Felicidad uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Felicidad produces 15 million pairs of jeans and 20 million bushels of rye, and Arcadia produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.
1. Felicidad's opportunity cost of producing 1 pair of jeans is (1/2, 1/4, 2, 4 Buschels) of rye, and Arcadia's opportunity cost of producing 1 pair of jeans is (1/2, 1/4, 2, 4 Buschels) of rye. Therefore, (Arcadia, Felicia) has a comparative advantage in the production of jeans, and has a comparative advantage in the production of rye.
2. Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce _____ million pairs per week, and the country that produces rye will produce ____ million bushels per week.
Suppose the country that produces jeans trades 18 million pairs of jeans to the other country in exchange for 54 million bushels of rye.
3. When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of rye was 68 million bushels per week. Because of specialization, the total production of jeans has increased by_____million pairs per week, and the total production of rye has increased by____million bushels per week.
Because the two countries produce more jeans and more rye under specialization, each country is able to gain from trade.
4. Complete the table: Production, Consumption, Trade Action, Increase in Consumption. For the answer choices of Trade Action: Jeans(Exports 18, Imports 18), Rye (Exports 54, Imports 54) Everything else are numerical values.
Felicia Felica Arcadia Arcadia
Jeans Rye Jeans Rye
(Millions) (Millions) (Millions) (Millions)
Without Trade
Production 15 20 8 48
Consumption 15 20 8 48
With Trade
Production
Trade Action
Consumption
Gains from Trade
Increase in Trade
Find the given attachments
An office has 5 copy machines that need to be serviced approximately once an hour either for paper, staples, or toner or repair. Each machine therefore runs approximately 1 hour before needing some attention. The average service time is 7 minutes. Copier downtime in this busy office costs approximately $20 per hour. The cost of attendant is $15 per hour. Using the finite queuing analysis, answer the following questions:________.
a. What is the average number of copiers in line?
b. What is the average number of copiers still in operation?
c. What is the average number of copiers being serviced?
d. The firm is considering adding another attendant at the same $15 rate. Should the office do it?
Answer:
a. Average number of copiers in line is 0.275
b. Average number of copiers still in operation is 4.23
c. Average number being serviced is 0.496
d. No, the office should not do it
Explanation:
N = number of copy machines = 5
U = average time between unit service requirements = 1 hour = 60 minutes
T = average service time = 7 minutes
M = number of servers = 1
Cost of copier downtime = $20
Cost of attendant = $15
(a) Service factor, X = T / (T+U) = 7 / (60+7) = 0.105
From the Finite Queuing Tables for a Population of N = 5,
For X = 0.105 and M=1, the efficiency factor, F = 0.945
So, The average number waiting in line, L = N × (1 - F) = 5 × (1 - 0.945) = 0.275
(b) Average number in operation, J = N×F×(1 - X) = 5×0.945×(1 - 0.105) = 4.23
(c) Average number being serviced, H = F×N×X = 0.945×5×0.105 = 0.496
(d) For M=1
The average number of copier down = N - J = 5 - 4.23 = 0.77
So, cost of downtime per hour = $20×0.77 = $15.4
Also, the cost of the server per hour = $15×M = $15×1 = $15
So, total cost = 15.4 + 15 = $30.4 per hour (i)
For M=2
From the Finite Queuing Tables for a Population of N = 5, with X = 0.105 and M=2, the efficiency factor, F = 0.997
J = N×F×(1 - X) = 5×0.997×(1 - 0.105) = 4.46
The average number of copier down = N - J = 5 - 4.46 = 0.54
So, cost of downtime per hour = $20×0.54 = $10.8
Also, the cost of the server per hour = $15×M = $15×2 = $30
So, total cost = 10.8 + 30 = $40.8 per hour (ii)
Comparing (i) and (ii), we can say that having another attendant is not cost-effective.
Centre College, a private liberal arts college in Central Kentucky, charged (billed) tuition and fees of $50,000 based on the registration of students; Centre provided scholarships of $12,000 to the registered students. The entry to bill the tuition and fees and scholarships would include a: A. Debit to Tuition and Fees, $50,000. B. Debit to Tuition Discounts and Allowances, $12,000. C. Credit to Tuition and Fees, $38,000. D. Credit to Tuition Discounts and Allowances, $14,000.
Answer: B. Debit to Tuition Discounts and Allowances, $12,000.
Explanation:
A scholarship is considered a discount so should be recorded as one. When recording a discount, it is debited to its own account which in this case will be the Tuition Discounts and Allowances account.
The full entries are,
DR Cash (50,000 - 12,000) $38,000
DR Tuition Discounts and Allowances $12,000
CR Tuition and Fees $50,000
Which of the following is the closest example of perfect price discrimination? Group of answer choices At an auction of antique furniture, each piece of furniture is sold to the highest bidder An electric utility charging higher rates to the customers in the summer season than in the winter season An airline providing discounts to its frequent-flyers as they fly more A golf-club imposing a very high entry fee to reduce membership requests
Answer:
At an auction of antique furniture, each piece of furniture is sold to the highest bidder
Explanation:
Price discrimination is when a seller charges different prices for the same good to different consumers based on their willingness to pay.
The aim of price discrimination is to eliminate consumer surplus
I hope my answer helps you
John blodgett is the managing partner of a business that has just finished building a 60 room mote boldgett aticipates that he will rent these rooms for 15000 nights nesxt year all rooms are similar and will rent for the same price blodgett estimates the following operating costs for next year the capital invested in the motel is $900000 the paritnarship target return on investment is 25% blodgett expect demand for rooms to be uniform throughout the year he plans to price the rooms at full cost plus markup on full cost to earn the target return on invesment
Variable operating cost $5per room-nigh
Total fixed costs 375000
What price should blodgett charge room night ?what is the markup as percentage of the full requried cost of room might
Answer:
a. Price Blodgett should charge $45 (see below)
b. Markup percentage of the full cost of room night:
Markup = $15
Full Cost =$30
Therefore, percentage of markup to full cost = 15/30 * 100 = 50%
Explanation:
a) Costs Calculations:
Unit cost Total cost
Variable $5 $75,000 ($5 x 15,000)
Fixed Cost $25 $375,000 ($375,000/15,000)
Full Cost $30 $450,000 ($30 x 15,000, or $75,000 + $375,000)
Markup $15 $225,000 ($900,000 x 25% returns)
Price to charge $45 $675,000
Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information available:
• Pan Asia Mining Co.’s stock (Ticker: PAMC) is trading at $22.50.
• The company’s stock is expected to pay a year-end dividend of $1.08 that is expected to grow at a certain rate.
• The stock’s expected rate of return is 10.80%.
Based on this information, Robert's forecast of PAMC's growth rate of earning and dividends should be:__________.
Answer:
Growth rate in dividend and earnings = 10%
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
The model is given as
P = D× g/(r-g)
P- price of stock, g - growth rate in dividend, r- required rate of return
P- 22.50, r- 10.80%, g- ?
22.50 = ( 1.80 ×g)/(0.108-g)
Cross multiplying
22.50 × (0.108 - g) = 1.80 × g
2.43 - 22.50g= 1.80 g
1.80g + 22.50g = 2.43
24.3 g = 2.43
g= 2.43/24.3= 0.1
g = 0.1 × 100 = 10%
Growth rate = 10%
The company makes 12,000 units of this part each year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 6.30 Direct labor $ 5.70 Variable overhead $ 4.80 Fixed Costs: Supervisor's salary $ 7.00 Depreciation of special equipment $ 8.60 Common fixed overhead $ 7.20 An outside supplier has offered to produce this part and sell it to the company for $37.70 each. If this offer is accepted, the supervisor will be fired. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. If the outside supplier's offer were accepted, common fixed costs would be reduced by $17,000. Now assume that the facilities that had been used to produce part S54 could be used for something else if S54 parts are purchased from an outside supplier. If this is true, would you be more likely or less likely to outsource S54 to the outside contractor?
Answer:
we will be more likely to outsource S54 to the outside contractor
Explanation:
Calculating the outsource contractor
Make Buy
Direct material 75600
Direct labour 68400
Variable overhead 57600
Supervisor's salary 84000
Allocated general overhead 17000
Purchase cost 452400
Total 302600 452400
The annual financial gain for the company as a result of buying the part from the outsource contractor would be (149800)
we will be more likely to outsource S54 to the outside contractor
Jim Arnold began a business called Arnold's Shoe Repair.
Required:
1. Complete the T accounts for Cash; Supplies; Jim Arnold, Capital; and Utilities Expense. Identify the following transactions by letter and place them on the proper side of the T accounts:
a. Invested cash in the business, $7,000.
b. Purchased supplies for cash, $800.
c. Paid utility bill, $1,500.
Answer:
T account are attached in PDF format with this question please find it.
Explanation:
Journal Entries
a. Invested cash in the business, $7,000.
Dr. Cash $7,000
Cr. Jim Arnold, Capital $7,000
b. Purchased supplies for cash, $800.
Dr. Supplies $800
Cr. Cash $800
c. Paid utility bill, $1,500.
Dr. Utilities $1,500
Cr. Cash $1,500
Western Electric has 33,500 shares of common stock outstanding at a price per share of $82 and a rate of return of 12.85 percent. The firm has 7,450 shares of 8.10 percent preferred stock outstanding at a price of $96.50 per share. The preferred stock has a par value of $100. The outstanding debt has a total face value of $413,000 and currently sells for 112.5 percent of face. The yield to maturity on the debt is 8.17 percent. What is the firm's weighted average cost of capital if the tax rate is 39 percent
Answer:
11.05
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.
Formula for WACC
Weighted Average Cost of Capital = (Cost of Equity x Weightage of equity) + (Cost of preferred Stock x Weightage of preferred Stock ) + (Cost of Debt (1 -t) x Weightage of Debt)
Market Value
Equity = 33,500 x $82 = $2,747,000
Preferred Stock = 7,450 x $96.50 = $718,925
Debt = $413,000 x 112.5% = $464,625
Total Value = $2,747,000 + $718,925 + $464,625 = $3,930,550
Cost of Equity = 12.85%
Cost of Preferred stock = 8.1%
Cost of Debt = 8.17%
Placing values in the formula
Weighted Average Cost of Capital = (12.85% x $2,747,000 / $3,930,550) + (8.1% x $718,625 / $3,930,550 ) + (8.17% (1 - 0.39) x $464,625 / $3,930,550)
Weighted Average Cost of Capital = 8.98% + 1.48% + 0.59% = 11.05%
Moss County Bank agrees to lend the Sandhill Co. $635000 on January 1. Sandhill Co. signs a $635000, 6%, 9-month note. The entry made by Sandhill Co. on January 1 to record the proceeds and issuance of the note is
a
Interest Expense 28575
Cash 606425
Notes Payable 635000
b
Cash 635000
Interest Expense 28575
Notes Payable 635000
Interest Payable 28575
c
Cash 635000
Notes Payable 635000
d
Cash 635000
Interest Expense 28575
Notes Payable 663575
Answer:
Cash 635000
Notes Payable 635000
Explanation:
As per the data given in the question,
The journal entry for issuance of the note is
Cash $635,000
To Notes payable $635,000
(Being the issuance of the note is recorded)
Here, Cash will increase the assets value and Notes payable will increase the liabilities value so both the accounts are debited and credited respectively.
Therefore, option C is correct
Placker Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $155,000, variable manufacturing overhead of $3.40 per machine-hour, and 50,000 machine-hours. Recently, Job A881 was completed with the following characteristics:
Total machine-hours 100
Direct materials $ 645
Direct labor cost $ 2,300
The total job cost for Job A881 is closest to: (Round your intermediate calculations to 2 decimal places.)
a. $1,295
b. $3,595
c. $2,950
d. $2,945
Answer:
Option B,$ 3,595.00 is correct
Explanation:
The sum of both fixed and variable manufacturing overhead gives the below amount:
total overhead=$155,000+($3.40*50,000)=$ 325,000.00
Plantwide predetermined overhead rate=total overhead/machine hours=$325,000.00/50,000.00=$6.50
The job cost=(100*$6.50)+$645+$2,300=$650+$645+$2,300=$ 3,595.00
The correct option is B $ 3,595.00
Option C shows that the total job cost is sum of direct labor cost plus the overhead which is wrong.
Option D showed that the total cost is the sum of direct labor cost plus the direct material which is also wrong
Tyler buys a futures contract from Alex that gives him the right to buy 1,000 barrels of oil at $125 per barrel in 48 months. What happens in 48 months if the actual price per barrel of oil is $100? Group of answer choices Alex must give Tyler $10,000. The contract becomes void because the price turned out lower than expected. Tyler must pay Alex $25,000. Tyler makes a profit of $25 per barrel, or $25,000.
Answer: Tyler must pay Alex $25,000.
Explanation:
This is a Futures contract which means that there must be a settling of losses and profits. Tyler went into a contract with Alex in which Tyler would buy oil from him at $125 a barrel in 48 months.
In 48 months however, the price is $100 per barrel. This means that Tyler would be paying $25 more for the barrel than it is worth.
Seeing as there are 1,000 barrels that comes to,
= $25 * 1,000
= $25,000
Tyler must therefore pay this $25,000 to Alex to settle the contract.
If the actual price per barrel of Oil is $100 in 48 months, than the option C is correct.
Future Contract
The Objective of the Future Contract is to settle the issue of profit and loss sharing. In the given question we know that, Tyler would buy oil from him at $125 a barrel in 48 months.
But the actual price oil is $100 per barrel, hence Tyler would be paying $25 more.
There are 1000 barrels whith exceeding cost by $25 per barrel, hence Tyler would be giving = 1000 × 25 = $25000. Therefore, the Option C "Tyler must pay Alex $25,000" is correct.
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client is using the Sales on Account workflow. Instead of receiving a payment against the invoice, they add a new deposit categorized to an income account.
Answer:two answers. Their accounts receivable balance will not be accurate. And the income account will show duplicate income.
Explanation:
Partial income statements for Murphy & Murphy (M & M) reported the following summarized amounts:
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Net Sales $ 60,000 $ 59,000 $ 80,000 $ 68,000
Cost of Goods Sold 24,000 26,550 29,050 26,520
Gross Profit $ 36,000 $ 32,450 $ 50,950 $ 41,480
After these amounts were reported, M & M’s accountant determined the inventory at the end of Quarter 2 was understated by $2,950. The inventory balance at the end of the other three quarters was accurately stated.
Required:
Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.
Answer and Explanation:
According to the scenario, The presentation of the given data are as follows:-
Partial Income Statement
Particular Quarter 1 amount ($) Quarter 2 amount ($) Quarter 3 amount ($) Quarter 4 amount ($)
Net Sales 60,000 59,000 80,000 68,000
Cost of sold goods 24,000 23,600 32,000 26,520
Gross Profit 36,000 35,400 48,000 41,480
($32,450 + $2,950) ($50,950 - $2,950)
Quarter 2 was understated by $2,950 at the end of the inventory.
Quarter 2 cost of sold goods
= Cost of sold goods - understated amount
= $26,550 - $2,950
= $23,600
Quarter 3 cost of sold goods
= Cost of sold goods + understated amount
= $29,050 + $2,950
= $32,000
Required: Access the American Eagle 2014 Annual Report/10K (In the appendix to the textbook or obtain online). Look at the financial statements and Notes to the financial statements closely and attempt to infer what kinds of information they report. Then, answer the following questions based on the Report.
1. What type of product does it sell?
2. On what date does American Eagle Outfitters most recent reporting year end?
3. Are its financial statement audited by independent CPA's?
4. Does its total assests increase or decrease over the last year?
Answer:
1) apparel, accessories for men and women and personal care product for women.
2) Feb 1 2020 for the year 2019
3) Yes
4) Increase
Explanation:
For this question annual report of 2019 was used. The report obtained online.
Coronado manufactures competition stunt kites. In November, Jerry Box prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted unit Sales 24,100 39,300 32,200 95,600 Budgeted ending inventory 7,860 6,440 2,870 2,870 Total units required 31,960 45,740 35,070 98,470 Beginning inventory 4,820 7,860 6,440 4,820 Budgeted production 27,140 37,880 28,630 93,650 Following higher-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had only 2,260 completed kites on hand. He decided that given the brisk sales in December, the company should increase its desired ending inventory level from 20 to 25 percent of the next month's sales volume. Prepare a new production budget for the first quarter. (Round answers to 0 decimal places, e.g. 5,275.) January February March Quarter
Answer:
New Production Budget:
January February March Quarter
Budgeted unit Sales 24,100 39,300 32,200 95,600 Budgeted ending inventory 9,825 8,050 3,588 3,588 Total units required 33,925 47,350 35,788 99,188 Beginning inventory 6,025 9,825 8,050 6,025 Budgeted production 27,900 37,525 27,738 93,163
Explanation:
a) Prepared Production Budget:
January February March Quarter
Budgeted unit Sales 24,100 39,300 32,200 95,600 Budgeted ending inventory 7,860 6,440 2,870 2,870 Total units required 31,960 45,740 35,070 98,470 Beginning inventory 4,820 7,860 6,440 4,820 Budgeted production 27,140 37,880 28,630 93,650
b) Budgeted Ending Inventory changed from 20% to 25% of the next month's sales. The April sales was estimated using the ending inventory of March for the prepared budget. This is calculated as follows:
Sales for April = 2,870/20% = 14,350 units
Therefore, the March ending inventory for the new production budget is equal to 25% of 14,350 = 3,588 units.
c) Production budget is an estimate of the units to be produced based on the sales forecast, desired ending inventory (safety stock to cover for unexpected increases in sales) and the period's beginning inventory level.
Employees who report unethical behavior in their own workplace (whistleblowers) are protected by law. However, many are reluctant to draw negative attention to their companies because of loyalty to the company or fear of reprisals. Chances are good you will encounter questionable behavior at your workplace at some point during your career. How you respond will be a measure of your ability to analyze issues and choose the responsible option.
How can you blow the whistle legally and ethically?
A. If you can't find any satisfactory solutions to the problem, change jobs.
B. If you can't find any satisfactory solutions to the problem, accept the situation.
C. If you can't find any satisfactory solutions to the problem, sue the company
Answer:
Try to correct the problem from within the company.
Explanation:
In many cases, the ability to respond more responsibly to a problem in the workplace can be resolved internally. Communicating the unethical problem to the supervisor or a responsible person you trust within the company, can generate a quick and immediate solution for the problem to be solved, before taking the situation to a deeper level, such as a process for example. Because it is not always possible for the supervisor to be aware of all the problems that involve the organizational environment, so communication is the most effective way of trying to solve the problems.
Answer:
Talk to someone you trust for advice
Explanation:
The adjusted trial balance for Waterway Industries at the end of the current year, 2021, contained the following accounts. 5-year Bonds Payable 9% $3000000 Interest Payable 48000 Premium on Bonds Payable 98000 Notes Payable (3 months.) 38000 Notes Payable (5 yr.) 166000 Mortgage Payable ($13000 due currently) 200000 Salaries and wages Payable 16000 Income Taxes Payable (due 3/15 of 2022) 23000 The total long-term liabilities reported on the balance sheet are $_______.
Answer:
The total long-term liabilities reported on the balance sheet are $3,451,000.
Explanation:
Details Amount ($)
Bonds Payable 9% 3,000,000
Premium on Bonds Payable 98,000
Notes Payable (5 yr.) 166,000
Mortgage Payable (200,000 - 13,000) 187,000
The total long-term liabilities 3,451,000
Delsing Canning Company is considering an expansion of its facilities. Its current income statement is as follows:
Sales $ 6,200,000
Variable costs (50% of sales) 3,100,000
Fixed costs 1,920,000
Earnings before interest and taxes (EBIT) $ 1,180,000
Interest (10% cost) 440,000
Earnings before taxes (EBT) $ 740,000
Tax (30%) 222,000
Earnings after taxes (EAT) $ 518,000
Shares of common stock 320,000
Earnings per share $ 1.62
The company is currently financed with 50 percent debt and 50 percent equity (common stock, par value of $10). In order to expand the facilities, Mr. Delsing estimates a need for $3.2 million in additional financing. His investment banker has laid out three plans for him to consider:
Sell $3.2 million of debt at 14 percent.
Sell $3.2 million of common stock at $20 per share.
Sell $1.60 million of debt at 13 percent and $1.60 million of common stock at $25 per share.
Variable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2,420,000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1.60 million per year for the next five years.
Delsing is interested in a thorough analysis of his expansion plans and methods of financing.He would like you to analyze the following:
Required:
a. The break-even point for operating expenses before and after expansion (in sales dollars). (Enter your answers in dollars not in millions, i.e, $1,234,567.)
b. The degree of operating leverage before and after expansion. Assume sales of $6.2 million before expansion and $7.2 million after expansion. Use the formula: DOL = (S − TVC) / (S − TVC − FC). (Round your answers to 2 decimal places.)
c-1. The degree of financial leverage before expansion. (Round your answers to 2 decimal places.)
c-2. The degree of financial leverage for all three methods after expansion. Assume sales of $7.2 million for this question. (Round your answers to 2 decimal places.)
d. Compute EPS under all three methods of financing the expansion at $7.2 million in sales (first year) and $10.1 million in sales (last year). (Round your answers to 2 decimal places.)
Answer:
Explanation:jl
Please check the file attached for the solution to the given problem
Carla Vista Co. had these transactions during the current period.
June 12 Issued 83,000 shares of $1 par value common stock for cash of $311,250.
July 11 Issued 4,300 shares of $103 par value preferred stock for cash at $107 per share.
Nov. 28 Purchased 2,400 shares of treasury stock for $9,350.
Required:
Prepare the journal entries for the Carla Vista Co. transactions shown above. (Record journal entries in the order presented in the problem.)
Answer:
June 12
Dr Cash 83,000
Cr Common Stock (83,000 × $1)
Dr Paid in capital in excess of par value 311,250
Cr Common Stock 311,250
July 11
Dr Cash 460,100
Cr Preferred Stock 442,900
Cr Paid in Capital in excess of par value -Preferred Stock 17,200
Nov. 28
Dr Treasury Stock 9,350
Cr Cash 9,350
Explanation:
Journal entries for Carla Vista Co.
June 12
Dr Cash 83,000
Cr Common Stock (83,000 × $1)
Dr Paid in capital in excess of par value 311,250
Cr Common Stock 311,250
July 11
Dr Cash 460,100
(4,300 × $107)
Cr Preferred Stock 442,900
(4,300 × $103)
Cr Paid in Capital in excess of par value -Preferred Stock 17,200
(4,300 × $4)
Nov. 28
Dr Treasury Stock 9,350
Cr Cash 9,350
Pacific Bank provides loans to businesses in the community through its Commercial Lending Department. Small loans (less than $100,000) may be approved by an individual loan officer, while larger loans (greater than $100,000) must be approved by a board of loan officers. Once a loan is approved, the funds are made available to the loan applicant under agreed-upon terms. Pacific Bank has instituted a policy whereby its president has the individual authority to approve loans up to $5,000,000. The president believes that this policy will allow flexibility to approve loans to valued clients much quicker than under the previous policy. As an intern auditor of Pacific Bank, how would you reposnd to this change in policy?
Answer:
Explanation:
As auditor, I may not agree with the policy that is been changed. It
is believed that, by default there is a normal loan risk that is been associated with the business of Pacific Bank. A way to help reduce this risk is to carefully asses the loan applications. Loans that are large has greater risk in the event of default compared to smaller loans. Therefore, it is reasonable to have more than several individual involved in decision making give a loan that is very big. In addition, loans should be given base on those that meet the requirements, it should not be on the base on favoritism or people with relationship with bank president. Giving the bank president the power to give huge loans may lead to him granting loans to people who he is familiar with, without the required due process been followed. This may cause the bank to be credit exposed risks that are poor.
The roles of money Larry just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down payment. He's deciding between a Super and a Duper. The Super is priced at $23,599, and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes the dealership a check for $4,000 and takes out a loan for the remainder of the purchase price. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money: Medium of Exchange, Unit of Account, Store of Value Larry writes a check for $4,000. Larry can easily determine that the price of the Super is more than the price of the Duper. Larry has saved $4,000 in his checking account.
Answer and Explanation:=
Medium of exchange - It is used to enable the sale and purchase between the parties. It represents the standard of value that is necessary to accept all the parties.
Larry writes a check for $4,000. It is a medium of exchange because it shows trade of goods between Larry and the car seller.
Unit of account - It gives permission to do the differentiation between two things.
Larry can easily differentiate the price of the super is more than the price of duper. It is unit of account because he knows the value of the super and duper.
Store of value - It is the value that can be saved and exchanged for a long time period.
Larry has saved checking amount is $4000. It is store of value because it is saved amount.
On November 1, 2021, Warren Co. adopted a plan to discontinue its barge division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by April 30, 2022. On December 31, 2021, the company's year-end, the following information relative to the discontinued division was accumulated:Operating loss Jan. 1–Dec. 31, 2021 $ 74 million Estimated operating losses, Jan. 1 to April 30, 2022 96 million Excess of fair value, less costs to sell, over book value at Dec. 31, 2021 11 million In its income statement for the year ended December 31, 2021, Warren would report a before-tax loss on discontinued operations of:A. $170 million.B. $159 million.C. $74 million.D. $63 million.
Answer:
C. $74 million
Explanation:
The computation of before-tax loss on discontinued operations is shown below:-
Before-tax loss on discontinued operations = Operating loss (From Jan 1 to 31 Dec 2021)
= $74 million
Here, the assets are not impaired, because the fair value is greater than the book value. So, $74 million can be recorded as it is the operating loss and the same is to be considered
A Company is evaluating rental prices. Historical data show that Friday and Saturday have twice the rentals of other days of the week. The following information pertains to the store's normal operations per week: Average rentals per day on Friday and Saturday 1,350 Average rentals per day on Sunday through Thursday 600 Store hours per day 10 Total units available for rent 10,000 Variable operating costs per hour $43 Marketing costs per week $1,800 Customer service costs per week $250 The store manager wants to charge more for rentals on Friday and Saturday. What is the minimum price that should be charged during peak rental days? (Round your answer to the nearest cent.)
Answer:
$1.01
Explanation:
For computing the minimum price first we need to find the following things which are shown below:
1. Variable operating cost per week.
= Variable operating costs per hour × Store hours per day × number of days
= $43 × 12 hours per day × 7 days
= $3,612
2. Now total cost per week is
Total cost per week = Variable operating costs per week + Marketing costs per week + Customer service costs per week
= $3,612 + $1,900 + $250
= $5,762
3. After calculating, the minimum price is
= Total costs per week ÷ Rental per week
where,
Total cost per week is $5,762
And, the rental per week is
= ($1,350 × 2 days) + ($600 × 5 days)
= $2,700 + $3,000
= $5,700
So, the minimum price is
= $5,762 ÷ $5,700
= $1.01
Morganton Company makes one product, and it provided the following information to help prepare the master budget for its first four months of operations:a. The budget selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 9,100, 22,000, 24,000, and 25,000 units, respectively. All sales are credit.b. Forty percent 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 requires 4 pounds of raw materials at $2.50 per pound.e. 40% of raw materials purchases are paid for in the month of purchase and 60% in the following month.f. The direct labor wage rate is $12 per hour. Each unit of finished goods requires two direct labor hours.g. The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $61,000.1. If 96,800 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?2. What is the estimated cost of raw materials purchases for July?3. If the cost of raw material purchases in June is $127,520, what are the estimated cash disbursements for raw materials purchases in July?4. What is the estimated accounts payable balance at the end of July?5. What is the estimated raw materials inventory Balance (in dollars) at the end of July?6. What is the total estimated direct labor costs for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced?7. If the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor hour, what is the estimated unit product cost?8. What is the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor-hour?9. What is the estimated cost of goods sold and gross margin for July, if the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor hour?10. What is the estimated net operation income for July, if the company always uses an estimated predetermined plantwide overhead rate of $12 per direct labor hour?
Answer and Explanation:
1)
BUDGETED SELLING PRICE $ 70 *
BUDGETED UNITS IN JULY 22000
BUDGETED SALES $ 1,540,000
2)
SALES
CASH 40% $ 616,000
CREDIT 60 % OF PREVIOUS MONTH $ 382,200
RAW MATERIAL
RAW MATERIAL PURCHASES COST
40 % PAID NOW JULY $260900 $ 104,360
60 % PREVIOUS MONTH JUNE $ 159980 $ 95,988
LABOR
$12 PER HOUR * (24980 * 2)$ 599,520
VARIABLE EXPENSES $ 37,400
($1.70 * 22000)
FIXED EXPENSES $ 61,000
CASH INFLOW $ 99,932
3)
SALES IN JULY $ 1,540,000
60 % OUTSTANDING $ 924,000
4) 2980 UNITS SHOULD BE PRODUCED
JUNE JULY AUGUST SEP
SALES UNIT 9100 22000 24000 25000
CLOSING UNITS4400 4800 5000 -
20% OF NEXT MONTH SALE
OPENING UNITS - 1820 4400 4800
20% OF PREVIOUS MONTH SALE
FINISHED GOODS REQUIRED
13500 24980 24600 20200
SALES + CLOSING - OPENING
RAW MATERIAL REQUIRED
54000 99920 98400 80800
FINISHED GOODS REQUIRED * 4
CLOSING UNITS9992 9840 8080 -
10% OF NEXT MONTH NEEDS
OPENING UNITS - 5400 9992 9840
10% OF PREVIOUS MONTH NEEDS
RAW MATERIAL PURCHASES
63992 104360 96488 70960