Answer and Explanation:
Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020
Budget Actual Difference
Indirect materials $14,000 $13,500 $500 Favorable
Indirect labor 19,000 19,500 500
Unfavourable
Utilities 10,000 10,500 500 Unfavourable
Supervision 4,000 4,000 0 Neither Favorable nor Unfavourable
Total 47,000 47,500 Unfavourable
The following information was taken from the records of Easter Corporation for the year ended December 31, 2019. Advertising expense $40,000 Income tax expense 26,000 Accounts payable 26,900 Dividends paid 30,000 Retained earnings (Jan 1, 2019) 115,720 Consulting fees revenue 200,000 Rent expense 23,400 Supplies expense 33,800 The retained earnings reported by Easter Corporation as of December 31, 2019 is:
Answer:
$162,520
Explanation:
As per the given question the solution of retained earnings is provided below:-
To reach at retained earning first we need to find out the total expenses and net income which are as follows:-
Total Expenses = Advertising Expense + Income Tax Expense + Rent Expense + Supplies Expense
= $40,000 + $26,000 + $23,400 + $33,800
= $123,200
now,
Net income = Revenue - Expenses
= $200,000 - $123,200
= $76,800
So, the Retained Earnings as of December 31, 2019 = Retained Earnings of January 1, 2019 + Net Income - Dividend
= $115,720 + $76,800 - $30,000
= $192,520 - $30,000
= $162,520
Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 5,600 50% Conversion costs $ 1,800 20% A total of 6,900 units were started and 6,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 158,800 Conversion costs $ 120,500 The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department
Answer:
6,500
Explanation:
As per the given question the solution of equivalent units for conversion costs is provided below:-
To reach the equivalent units of conversion first we need to find out the ending inventory units which is below:-
Ending inventory units = Beginning units + Started - Units completed
= 500 + 6,900 - 6,200
= 7,400 - 6,200
= 1,200
Equivalent units of conversion = Units completed + Ending Work in progress
= (6,200 × 100%) + (1,200 × (100% - 75%))
= 6,200 + 300
= 6,500
So, we have calculated the equivalent units of conversion by using the above formula.
In their Portland, Oregon facility, Wavy Wood Works makes several types of wood bowls from coastal drift wood. To make a bowl, the first step is to clean the drift wood. Each piece of drift wood makes a single bowl. There is one cleaning machine. It takes 40 seconds to load each piece of wood and the machine can hold up to 35 pieces. Once all of the pieces are loaded into the machine, it takes 45 minutes to clean the set (no matter the number of pieces in the set). Once the wood is cleaned, 15 skilled artisans carve the bowls, each one takes on average 100 minutes to produce each bowl. After carving, bowls are finished with a stain. It takes 30 seconds to load each bowl into the stain machine. The staining machine holds up to 35 bowls. Once all of the bowls are loaded, they are soaked for 80 minutes. After staining, bowls are unloaded onto drying racks. There is plenty of space on the drying racks.
What is the maximum capacity (bowls per hour) of this process?
J&E Enterprisesi s considering and investment which produces no cash flows for the first year. In the second year, the cash inflow is $47,000. This inflow will increase to $198,000 and then $226,000 for the following two years, respectively, before ceasing permanently. The initial investment will cost $318,000. The firm requires a 15.5 percent rate of return and has a required discounted payback period of three years. Should the project be accepted. Why or why not?
Year Cash flow Discounted cash flo Cumulative cash flo
1 $0 $0.00 $0.00
2 $47,000 $35,321.72 $35,231.72
3 $198,000 $128,504.77 $163,736.49
4 $226,000 $126,993.21 $290,729.70
Answer:
No
The amount of cumulative discounted cash flows is less than the the amount invested in the project. This means that the project is unprofitable.
Explanation:
The discounted cash flow method calculates how long it takes to recover the amount invested in a project from its cumulative discounted cash flow.
A project should be accepted if the amount invested in the project is recovered from the cumulative discounted cash flow within the period specified by the firm.
The cumulative discounted cash flow, $290,729.70 is less than the amount invested $318,000. So the project shouldn't be accepted.
I hope my answer helps you
On May 1, A makes a written offer to B for the sale of A's car. On May 2, A mails B a letter revoking the offer. On May 3, A telephones B to tell him that he is revoking the offer. On May 4, B learns that A has sold the car to C. On May 5, A's letter finally gets to B. On what day did A's offer terminate? Why?
Answer:
On what day did A's offer terminate?
May 3
Why?
In order for a written offer to be terminated, the offeror must revoke the offer, the offeree must make a counteroffer, or the valid time for the offer must expire. In this case, A is the offeror and B is the offeree. A can revoke his/her offer as long as it is done before B accepted it. In order for the revocation to be valid, B must be notified about it.
In this case, A called B on May 3 to notify him/her that the offer was being revoked. Legally, that would be the day when the offer was terminated. The revocation letter is not important here because it arrived after A had called B.
A factory machine was purchased for $393000 on January 1, 2018. It was estimated that it would have a $74000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 30000 hours in the 5 years. The company ran the machine for 3900 actual hours in 2018.
Required:
1. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2018 would be ________.
A) $51090.
B) $41470.
C) $82940.
D) $74000.
Answer:
Annual depreciation= $41,470
Explanation:
Giving the following information:
Purchasing price= $393,000
Salvage value= $74,000
The machine would be run 30000 hours in the 5 years. The company ran the machine for 3900 actual hours in 2018.
To calculate the depreciation expense using the units of activity method, we need to use the following formula on each year:
Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated
Annual depreciation= [(393,000 - 74,000)/30,000]*3,900
Annual depreciation= $41,470
Because of her excessive tardiness and absenteeism during the year, the company discharged Ruth V. Williams on November 13. Ruth has requested Form W-2 be given to her. Form W-2 will include her final pay. For the week ending November 7, she was late a total of six hours; and for this week, she missed two full days and was late two hours on another day. In lieu of two weeks' notice, Williams was given two full weeks' pay ($1,223.08). Along with her dismissal pay ($1,223.08), she was paid for the week ending November 7 (34 hours, or $519.86) and the days worked this current week (22 hours, or $336.38). The total pay for the two partial weeks is $856.24.Pay Points:Prepare a Wage and Tax Statement, Form W-2, to be given to Williams.1) Record a separate payroll register (on one line) to show Williamsâs total earnings, deductions, and net pay. The two weeksâ dismissal pay is subject to all payroll taxes. Include dismissal pay with the total earnings but do not show the hours in the Time Record columns. Use the tax table for the biweekly payroll period for the total gross pay ($2,079.32) of Williams.The deduction for group insurance premiums is $14.40. In the Time Record column, make a note of Williamsâs discharge as of this date. Indicate the payroll check number used to prepare the final check for Williams. When posting to the earnings record, make a notation of Williamsâs discharge on this date.2) Prepare the journal entries to transfer the net cash and to record Williamsâs final pay and the employerâs payroll taxes. Post to the ledger accounts.3) Use the blank Form W-2. Box "a" should be left blank, since Glo-Brite Paint Company does not use a control number to identify individual Forms W-2.
Answer:
Explanation:
STEP1: Payroll register form and details for Nov13
Name : Ruth Williams
Pay period : 2 partial weeks
Pay date : Nov 7th
Regular hours : No need to enter
Overtime hours : No need to enter
Pay rate : Nil
Gross pay : $2079.32
Federal, state, and local income taxes
Employee withholding for Social Security and Medicare taxes
Other deductions : ($14.4)
------------------
Net pay 2064.6
------------------
The PMI "Code of Ethics and Professional Conduct" provides guidelines for ethical behavior by project management practitioners. It describes four main values that should guide a project managerâs actions. List these four values and give one example per value of why it should guide a project managerâs actions.
Answer/Explanation:
The four core values that guides actions of project management practitioners according to the PMI "Code of Ethics and Professional Conduct" are:
1. Honesty: this value for example requires practitioners to discharge their duties with all sincerity of purpose and should in all manner and situation declare or provide information or reports that are true, accurate and reliable, even if it seems unpalatable or unpleasant. Honesty must be upheld.
2. Responsibility: this value mandates practitioners to take responsibility of their actions and inactions, and make only the right decisions that would benefit the public society and ensures public safety. Practitioners for example, can report any compromise made by any individual that may compromise standards and policies that are laid down.
3. Respect: this mandates practitioners to have regard for each other and all resources under every practitioner's care must be treated with utmost caution and respect. This code would guide practitioners in their behaviors towards discharging their duties and making negotiations in good faith.
4. Fairness: this value ensures all practitioners take decisions that are objective, act and discharge their duties without partiality or favouritism. This is very important in the case of bidding of contract. There should be fairness and transparency.
A U.S. company's foreign subsidiary had the following amounts in stickles (§) in 2013: COGS § 12,000,000 Ending Inventory 600,000 Beg. inventory 240,000 The average exchange rate during 2013 was §1 = $.96. The beginning inventory was acquired when the exchange rate was §1 = $1.20. The ending inventory was acquired when the exchange rate was §1 = $.90. The exchange rate at December 31, 2013 was §1 = $.84. Assuming that the foreign country had a highly inflationary economy, at what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2013 U.S. dollar income statement? A. $11,253,600. B. $11,577,600. C. $11,649,600. D. $11,613,600. E. $11,523,600. D. $11,613,600. A U.S. company's foreign subsidiary had the following amounts in stickles (§), the functional currency, in 2013: COGS § 12,000,000 Ending Inventory 600,000 Beg. inventory 240,000 The average exchange rate during 2013 was §1 = $.96. The beginning inventory was acquired when the exchange rate was §1 = $1.20. The ending inventory was acquired when the exchange rate was §1 = $.90. The exchange rate at December 31, 2013 was §1 = $.84. At what amount should the foreign subsidiary's cost of goods sold have been reflected in the 2013 U.S. dollar income statement? A. $11,253,600. B. $11,577,600. C. $11,520,000. D. $11,613,600. E. $11,523,600.
Answer:
Option (D)
Explanation:
According to the scenario, computation of the given data are as follow:-
Particular Amount × Exchange rate Total value after exchange rate
Cost of goods sold 12,000,000
Add-ending inventory 600,000 × 0.9 $540,000
Less-opening inventory 240,000 × 1.2 $288,000
Purchase 12,360,000 × 0.96 $11,865,600
Cost of Goods Sold After Exchange Rate = Purchase - Ending Inventory + Opening Inventory
= $11,865,600 - $540,000 + $288,000
= $11,613,600
According to the analysis, option (D) $11,613,600 is correct.
Bearcat Construction begins operations in March and has the following transactions.
March 1 Issue common stock for $21,000.
March 5 Obtain $9,000 loan from the bank by signing a note.
March 10 Purchase construction equipment for $25,000 cash.
March 15 Purchase advertising for the current month for $1,100 cash.
March 22 Provide construction services for $18,000 on account.
March 27 Receive $13,000 cash on account from March 22 services.
March 28 Pay salaries for the current month of $6,000.
Required:
1. Record each transaction. Bearcat uses the following accounts: Cash, Accounts Receivable, Equipment, Notes Payable, Common Stock, Service Revenue, Advertising Expense, and Salaries Expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
March 1 Issue common stock for $21,000.
Dr Cash 21,000 Cr Common stock 21,000March 5 Obtain $9,000 loan from the bank by signing a note.
Dr Cash 9,000 Cr Notes payable 9,000March 10 Purchase construction equipment for $25,000 cash.
Dr Equipment 25,000 Cr Cash 25,000March 15 Purchase advertising for the current month for $1,100 cash.
Dr Advertising expense 1,100 Cr Cash 1,100March 22 Provide construction services for $18,000 on account.
Dr Accounts receivable 18,000 Cr Service revenue 18,000March 27 Receive $13,000 cash on account from March 22 services.
Dr Cash 13,000 Cr Accounts receivable 13,000March 28 Pay salaries for the current month of $6,000.
Dr Salaries expense 6,000 Cr Cash 6,000Required earnings are the:_______
a. adjusted net income multiplied by the required rate of return on common equity capital.
b. net income the analyst expects the firm to generate multiplied by the required rate of return on common equity capital.
c. the market value of common equity capital at the beginning of the period multiplied by the required rate of return on common equity capital.
d. the book value of common equity capital at the beginning of the period multiplied by the required rate of return on common equity capital.
Explanation:
Required earnings are the minimum amount of earnings to meet the cost of equity capital requirements.
required earnings = book value of equity capital×required rate of return on common capital.(or common capital).
multiplying by market value is not correct to find out the required earnings.(option a is false ).
net income is calculated from required earnings, so there is no need to multiply net income or adjusted net income with required rate of return on common equity capital. Hence, b and c both are wrong.
Hence option d that is the book value of common equity capital at the beginning of the period multiplied by the required rate of return on common equity capital, is correct.
a. "The choice of strategy for a multinational firm must depend on a comparison of the benefits of that strategy (in terms of value creation) with the costs of implementing it (as defined by organizational architecture necessary for implementation). On this basis, it may be logical for some firms to pursue a localization strategy, others a global or international strategy, and still others a transnational strategy." Is this statement correct? Why or why not?
Explanation:
This statement is correct because the benefits and costs of localization, global, international and transnational strategies for a multinational are different, so the choice of the best strategy must be aligned with the objectives and goals that a company intends to achieve in the market, in order to generate a cost / benefit exchange that will help the multinational to remain competitive in the world market.
It is necessary for the company to observe each different strategy from a cost and benefit perspective, in order to obtain a competitive advantage in a highly competitive market.
Therefore, the best strategy will be the one that will help the company to reduce costs and increase the local response capacity in the global market.
The local strategy, for example, can generate competitive advantage, but which will need to substantially reduce its cost structure to compete with well positioned competitors, which can generate a change that leads the company to adopt a transnational strategy.
The international strategy can only work in the short term, since in order to remain in the market in the long term, the multinational needs to adopt a global standardization and a transnational strategy in order to generate competitive advantage.
Teresa owns and operates a store in a country experiencing a high rate of inflation. In order to prevent the value of money in her cash register from falling too quickly, Teresa sends an employee to the bank four times per day to make deposits in an interest-bearing account that protects the store's revenues from the effects of inflation. This is an example of the _______________
Answer:
Shoe leather costs
Explanation:
Inflation can be defined as the constant rise in the prices of goods and services within an specific period of time. It can also be described as the increase in the cost of living for the average individuals as they now struggle to buy products in the market whose price has been increased way above their normal budget. It could be as as result of many factors which such as the repayment of a large amount of money borrowed by the government, increase in the rate at which government spends money.
Shoe leather costs can be described as the amount of time and effort an individual spends to reduce the effect caused by high prices of goods.
In the scenario described above, Teresa sends her employee to the bank four times per day to pay in money into the account inorder to curb the effect of inflation, this is described as shoe leather costs because regular visits to the bank tends to wear off the shoes of the employee.
In its first year of operations, Gomes Company recognized $28,000 in service revenue, $6,000 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from customers. The company incurred operating expenses of $15, 800. Of these expenses, $12,000 were paid in cash; $3, 800 was still owed on account at year-end. In addition, Gomes prepaid $2, 400 for insurance coverage that would not be used until the second year of operations.
(a) Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the basis of accounting.
(b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
Answer:
a. The first year's net earnings under the cash basis of accounting is $7,600 and the first year's net earnings under the basis of accounting is $12,200
b. Accrual basis of accounting provides more useful information.
Explanation:
a. In order to calculate the first year's net earnings under the cash basis of accounting we would have to use the following formula:
Cash basis net earnings = Service revenue (Cash) – Cash expenses – Prepaid expenses
Cash basis net earnings =$22,000 – $12,000 – $2,400
Cash basis net earnings =$7,600
In order to calculate the first year's net earnings under the the basis of accounting we would have to use the following formula:
Accrual basis net earnings = Service revenue – Operating expenses incurred
Accrual basis net earnings= $28,000 – $15,800
Accrual basis net earnings=$12,200
b. Accrual basis of accounting provides more useful information, because in this system revenues are recorded what actually earned and expenses are recorded what actually incurred for earning such revenues. Therefore, it gives better profit picture
The revenues and expenses of Paradise Travel Service for the year ended May 31, 2018, follow: Accounts Fees earned $1,430,000 Office expense 305,000 Miscellaneous expense 37,000 Wages expense 897,000 Everett McCauley invested an additional $60,000 in the business in exchange for common stock, and $27,000 of dividends were paid during the year. Retained earnings as of June 1, 2017, was $557,000. Prepare a retained earnings statement for the year ended May 31, 2018. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. "Less" or "Add" is not required. A decrease to retained earnings should be entered as a negative amount. Labels For the Year Ended May 31, 2018 May 31, 2018 Amount Descriptions Change in retained earnings Dividends Net income Net loss Retained earnings, June 1, 2017 Retained earnings, May 31, 2018 Paradise Travel Service Retained Earnings Statement 1 2 3 4 5
Answer:
Explanation:
Base on the description of the question, we can use the following method to solve the given problem
Prepare a retained earnings statement for the year ended May 31, 2018.
Beginning retained earnings 557000
Change in retained earnings
Add: Net income 191000
Less:Dividend -27000
Ending retained earnings 721000
Which of the following statements is false about assessing interests in negotiations? Select one: a. If you don’t ask what the other’s interests are, you are likely to be off base. b. Parties in conflict often assume they know the interests of the other. c. Taking a firm position suggests several interests typically underlie it. d. Parties always have multiple interests. e. Relational and identity issues are rarely important in negotiations.
Answer:
E) Relational and identity issues are rarely important in negotiations.
Explanation:
Negotiations between conflicting parties involve people, and whenever people are involved, the possibility of personal issues getting involved always exist. Sometimes a good relationship between the negotiating parties can help to solve the problem more swiftly, but bad relationships can result in exactly the opposite.
bob and barbara are friends. bob takes out a $10000 loan and agrees to repay it over 12 years making annual level payments at an effective rate of 5.62499%. at the same time barbara takes out a $10000 loan and agrees to repay it by making annual interest payments at an annual effective interest rate of i. she also agrees to make annual level deposits into a sinking fund that earns 4% annual effective interest so as to accumulate $10,000 at the end of the 12 years. bob and barbara discover they have the same total annual expenditures resulting from their loans. find the rate i.
Answer:
5.0285%
Explanation:
Bob's annual payment is $1,168.37 (using a financial calculator)
Barbara's annual interest payment = $1,168.37 - annuity that will have a future value of $10,000 in 12 years
future value of annuity = payment x [(1 + r)ⁿ - 1] / r
r = 4%future value = $10,000n = 12$10,000 = payment x [(1 + 0.04)¹² - 1] / 0.04
$10,000 = payment x 15.0258
payment = $10,000 / 15.0258
payment = $665.52
Barbara's annual interest payment = $1,168.37 - $665.52 = $502.85
Barbara's effective interest rate i = $502.85 / $10,000 = 5.0285%
Based on the information given, the effective interest rate will be 5.0285%.
From the information given, by using a financial calculator, Bob's annual payment will be $1,168.37.
Also, the future value of annuity will be calculated thus:
= payment x [(1 + r)ⁿ - 1] / r
where,
r = 4%
future value = $10,000
n = 12
Therefore, this will be
$10,000 = payment x [(1 + 0.04)¹² - 1] / 0.04
$10,000 = payment x 15.0258
payment = $10,000 / 15.0258
payment = $665.52
Therefore, Barbara's annual interest payment will be calculated thus:
= $1,168.37 - $665.52
= $502.85
Therefore, her effective interest rate will be:
= $502.85 / $10,000
= 5.0285%
In conclusion, the correct option is 5.0285%.
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Your company is considering expanding its retail outlet. Currently, inventory levels are $5,000. With the expansion, it is expected that inventory levels will need to be $9,500. It is expected that accounts receivable will increase by $4,000 and account payable will decrease by $10,000. The expansion of the building will cost $120,000. What change in net working capital is this expansion causing
Answer:
Change is net working capital is -$18,500(use of cash)
Explanation:
Due to the expansion inventory would increase by $4,500 ($9,500-$5,000)
Accounts receivable would also increase by $4,000 over its previous amount.
Accounts payable would reduce by $10,000 as compared to previous balance of accounts payable
The change in net working capital=$4,500+$4,000+$10,000=$18,500
This is a use of cash not a source of cash inflow
USA Airlines uses the following performance measures. Classify each of the performance measures below into the most likely balanced Scorecard perspective it relates to. Select your answers using C(customer), P (internal process), / (innovation and growth), or F(financial). 1. Percentage of late flights 2. Cost of leasing airport gates 3. Employee satisfaction survey ratings 4. Percentage of waste recycled 5. Number of reports of mishandled or lost baggage 6. Operating cash flow 7. Employee diversity training sessions completed 8. Accidents or safety incidents per mile flown 9. Percentage of on-time departures 10. Average ticket price 11. Percentage of ground crew trained 12. Time airplane is on ground between flights 13. On-time flight percentage 14. Net income
Answer: please see explanation column
Explanation: Classifying performance measures, we have
1. Percentage of late flights ------Customer, C
2. Cost of leasing airport gates ----Financial, F
3. Employee satisfaction survey ratings----P (internal process)
4. Percentage of waste recycled-----Innovation and Growth, I
5. Number of reports of mishandled or lost baggage ----Customer, C
6. Operating cash flow------Financial, F
7. Employee diversity training sessions completed-----Innovation and Growth, I
8. Accidents or safety incidents per mile flown---- -P (internal process)
9. Percentage of on-time departures----Customer, C
10. Average ticket price----Financial, F
11. Percentage of ground crew trained------Innovation and Growth, I
12. Time airplane is on ground between flights------P (internal process)
13. On-time flight percentage---Customer, C-
14. Net income-----Financial, F
Petro Corporation has provided the following information concerning a capital budgeting project:
After-tax discount rate 11 %
Tax rate 30 %
Expected life of the project 4
Investment required in equipment $80,000
Salvage value of equipment $0
Working capital requirement $20,000
Annual sales $180,000
Annual cash operating expenses $40,000
The working capital would be required immediately and would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.
Required:
Determine the net present value of the project.
Answer:
Net present value = 18,657.90
Explanation:
Find the given attachment
Match the given terms to the appropriate statement relating to the various functions of money. Each term is used only once. 1. Money provides a way of measuring a good for value in standardized terms. 2. Money permits us to make purchases today and enables us to pay off the purchases at some future point in time. 3. Money keeps its overall purchasing power. 4. Money is used to complete the transaction between the buyer and seller.a) Unit of Account b) Medium of Exchange c) Store of Value d) Standard of Deferred Payment
Answer:
1. Unit of Account: Money provides a way of measuring a good for value in standardized terms.
2. Standard of Deferred Payment: Money permits us to make purchases today and enables us to pay off the purchases at some future point in time.
3. Store of Value: Money keeps its overall purchasing power.
4. Medium of Exchange: Money is used to complete the transaction between the buyer and seller.
Explanation:
Money is a liquid asset or legal tender which is generally accepted and recognized in a socio-economic community or country as a medium of payment for goods and services and repayment of debts, such as loans. The functions of money are;
1. It provides a way of measuring a good for value in standardized terms.
2. It allows individuals or persons make purchases today and enables them to pay off the purchases at a latter date.
3. Money keeps its overall purchasing power.
4. It is generally used to complete the transaction between the buyer and seller.
) A company sells a software suite that includes a word processor and spreadsheet applications. The suite sells for $250 and the items are also available separately for $200 (spreadsheet) and $170 (word processor). The spreadsheet app is by far the best seller of the standalone product sales. Using the incremental-revenue allocation method and assuming that the spreadsheet is the primary product, how much of the $250 revenue from the bundled product sale would be allocated to the spreadsheet and to the word processing products?
Answer:
Allocated to the the word processing products would be$80
To the spreadsheet would be allocated revenues for $170
Explanation:
In order to calculate how much of the $250 revenue from the bundled product sale would be allocated to the the word processing products we would have to use the following formula:
allocated to the the word processing products= sold price suits- spreadsheet price
allocated to the the word processing products= $250-$170
allocated to the the word processing products=$80
To the spreadsheet would be allocated revenues for $170
Think about the different types of financial statements you learned about the income statement, statement of retained earnings, balance sheets, and statements of cash flow. If you were an investor, would you place more emphasis on any one particular financial statement? Why, or why not?
Answer:
The three most important financial statements are the income statement, balance sheet and cash flow statement. They are all linked together, and any investor needs to analysis the three of them together.
The income statement and the cash flow statement show information about a certain period of time, while the balance sheet is like a photo of one single day. Each one shows something different about the company:
the income statement shows how profitable the company is. But no matter how profitable a company might be, if it doesn't have enough cash to function then it is bankrupt, that is the importance of the cash flow statement. The balance sheet shows the financial position of the company, specially how the company is being financed.
Where one ends, other one begins:
The income statement starts with total revenue and ends in net income. Net income is the starting point of the cash flow statement and at the same time shows the change in retained earnings (balance sheet). The cash flow statement starts with net income and ends in the cash balance which is the starting point of the balance sheet. The balance sheet ends in retained earnings and the changes in retained earnings are given by net income and dividends paid.
They are all linked together and they are all needed in order to perform a proper analysis.
The following transactions occurred during March 2013 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
1. Issued 30,000 shares of common stock in exchange for $300,000 in cash.
2.
Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
5. Paid $5,000 in rent on the warehouse building for the month of March.
6.
Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2013.
7. Paid $70,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Recorded depreciation expense of $1,000 for the month on the equipment.
Required:
Analyze each transaction and show the effect of each on the accounting equation for a corporation. (Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.)
ASSETS = Liabilities + Paid-in Capital + Retained Earnings
1
2
3
4
5
6
7
8
9
Answer:
Wainwright Corporation
ASSETS = Liabilities + Paid-in Capital + Retained Earnings
1 . Assets (Cash) increase $30,000 = Liabilities + Paid-in Capital increase $30,000 + Retained Earnings
2 . Assets (Equipment) increase $40,000 and (Cash) decrease -$10,000 = Liabilities increase $30,000 + Paid-in Capital + Retained Earnings
3 . Assets (Inventory) increase $90,000 = Liabilities (Notes Payable) increase $90,000 + Paid-in Capital + Retained Earnings
4 . Assets (Inventory) decrease -$70,000 + (Accounts Receivable) increase $120,000 = Liabilities + Paid-in Capital + Retained Earnings increase $50,000
5 . Assets (Cash) decrease -$5,000 + (Insurance Prepaid) increase $5,000= Liabilities + Paid-in Capital + Retained Earnings
6 . Assets (Cash) decrease -$6,000 = Liabilities + Paid-in Capital + Retained Earnings -$6,000
7. Assets (Cash) decrease -$70,000 = Liabilities (Accounts Payable) decrease -$70,000 = Paid-in Capital + Retained Earnings
8 . Assets (Cash) increase $55,000 and decrease (Accounts Receivable) -$55,000 = Liabilities + Paid-in Capital + Retained Earnings
9. Assets (Equipment) decrease -$1,000 = Liabilities + Paid-in Capital + Retained Earnings decrease -$1,000.
Explanation:
a) The accounting equation states that Assets are equal to Liabilities Plus Paid-in Capital Plus Retained Earnings. This equation is very important in accounting as it keeps the two sides of the balance sheet in balance. The equation shows that assets are funded by liabilities or equity or profits from operation.
b) When common stock is issued for cash, Assets increase and Paid-in Capital increase.
c) The purchase of equipment increases Assets by $40,000 and decreases Assets by $10,000 (for cash payment) and increases Liabilities by $30,000 as note payable.
d) Assets increase by $90,000 with inventory purchased on account and Liabilities (Accounts Receivable) increases by the same amount.
e) Payments for Rent for March will decrease Assets (Cash) and decrease Retained Earnings.
f) The Insurance cost of $6,000 paid in advance will decrease Assets (Cash) and increase Assets (Insurance Prepaid) without affecting the other side of the equation.
g) Depreciation expense also decreases Assets (Equipment) and decreases the Retained Earnings by $1,000 respectively.
Cool Cars Location (Scenario) An automobile producer from Southern Italy, Cool Cars, has developed plans to expand internationally through greenfield FDI in an international market. Cool Cars has enjoyed success marketing stylish but economical autos in Portugal, Spain and Italy. Management is confident they can duplicate this success in other auto markets. At present they are deciding between Russia and Canada as locations for their investment. From the following list which one would favor building in Russia? Select one: a. The Russian government is more transparent and has a lower level of corruption than Canada b. Cool Cars would be able to take advantage of NAFTA c. Intellectual property lawsuits are common in Russia. d. Land and construction costs are comparatively less expensive in Russia than in Canada
Answer:
D. Land and construction costs are comparatively less expensive in Russia than in Canada
Explanation:
Option D would favor Russia ahead of Canada because of the fact that manufacturing costs are cheaper and they have easier access to Capital. I came to this conclusion since it has been stated that land and construction costs are cheaper in Russia.
In Economics the goal of every firm is to minimize cost and to maximize profit. Option D is cost minimizing for cool cars if they want to duplicate their overall success.
Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.: December 31 Year 2 Year 1 Current assets $1,498,763 $1,549,399 Current liabilities 478,810 421,627 a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current ratio" answers to two decimal places.
Answer:
Working Capital
Year 1 = $1127772
Year 2 = $1019953
Current Ratio
Year 1 = 3.67
Year 2 = 3.13
Explanation:
Working capital is a measure of operating liquidity of a business. It is the capital that is required for the day to day operations of a business. Working Capital can be calculated as follows,
Working Capital = Current Assets - Current liabilities
Working Capital:
Year 1 = 1549399 - 421627 = $1127772
Year 2 = 1498763 - 478810 = $1019953
Current Ratio is a financial measure of the liquidity of a business. It measures the company's ability to meet its short term debts. It tells how much $ current assets are available to pay off $1 of current liability It is calculated as follows,
Current ratio = Current Assets / Current Liabilities
Current Ratio:
Year 1 = 1549399 / 421627 = 3.67
Year 2 = 1498763 / 478810 = 3.13
rates at business hotels are typically much lower on weekends than during the week
True or false?
Answer: I think is True
Explanation: I hope that helps :)
A and B Companies have been operating separately for five years. Each company has a minimal amount of liabilities and a simple capital structure consisting solely of voting common stock. In exchange for 40 percent of its voting stock, A Company acquires 80 percent of the common stock of B Company. This is a "tax-free" stock-for-stock exchange for tax purposes. B Company’s identifiable assets have a total net fair market value of $800,000 and a total net book value of $580,000. The fair market value of the A stock used in the exchange is $700,000, and the fair value of the noncontrolling interest is $175,000.
Required:
1. The goodwill reported following the acquisition would be _____________.
Answer:
$75,000
Explanation:
Goodwill is an intangible asset that equals the money paid in excess of fair market value for a company's assets, which includes the company's brand recognition, proprietor technology, clients, etc.
goodwill = fair market value of A stock used in the exchange + fair market value of the noncontrolling interest - fair market value of company B's assets = $700,000 + $175,000 - $800,000 = $75,000
Whispering Winds Corp. took a physical inventory on December 31 and determined that goods costing $213,000 were on hand. Not included in the physical count were $35,000 of goods purchased from Coronado Industries, FOB, shipping point, and $26,500 of goods sold to Sunland Company for $31,000, FOB destination. Both the Coronado purchase and the Sunland sale were in transit at year-end.
Required:
1. What amount should Whispering Winds report as its December 31 inventory?
Answer:
Whispering Winds December 31 inventory $ 274,500
Explanation:
FOB shipping point means free on board shipping point. It gives the buyer the ownership of the goods purchased once they are shipped. These in transit are under the buyer's ownership.
FOB destination means that the buyers get the ownership when the goods reach the destination point.These in transit are not under in the buyer's ownership.
Goods costing on hand $213,000
Add Goods purchased FOB, shipping point $ 35000
Add Goods sold to Sunland Company FOB destination $ 26,500
Whispering Winds December 31 inventory $ 274,500
Both purchased and sold are under the Whispering Winds Corp. inventory as they sold ones have not reached the destination and purchased have left the shipping point.
Assumptions: These two graphs show two sectors of the labor market for a particular kind of labor. Relevant product markets are competitive. The two labor demand curves are identical. Initially the quantities of labor employed in the two sectors are L1 and L'1, and the wage rate in each sector is Wn. If a union is formed in sector 1 and the union increases the wage rate from Wn to Wu, then employment will Multiple Choice decrease, but we cannot determine by how much. decrease by 0L2 in sector 1. decrease by L1L2 in sector 1. increase by L1L2 in sector 1.
Answer:
Decrease by L1L2 in sector 1
Explanation:
Labour markets are at equilibrium when market demand for labour = market supply of labour.
Sector 1 previous equilibrium is 0L1, equilibrium wage is 0Wn (0 is origin). Union leads to increase in wage rate from 0Wn to 0Wu. This increase in wages lead to decrease in employment in sector 1. Supposing that the new equilibrium labour employed = 0L2, which is lesser than previous employment 0L1. So, the employment level falls by margin difference L1L2 in sector 1.