Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2018, net credit sales totaled $6,300,000, and the estimated bad debt percentage is 1.30%. The allowance for uncollectible accounts had a credit balance of $60,000 at the beginning of 2018 and $49,000, after adjusting entries, at the end of 2018. Required: 1. What is bad debt expense for 2018 as a percent of net credit sales

Answers

Answer 1

Answer:

See below

Explanation:

For 2018, the net credit sales is totalled $6,300,000

Then, the estimated bad debt percentage is 1.30% of $6,300,000

= 1.30% × $6,300,000

= $81,900

Therefore, the bad debt expense for 2018 as a percentage of net credit sales is $81,900


Related Questions

The predicted 2017 costs for Gamma Motors are as follows: Manufacturing Costs Selling and Administrative Costs Variable $250,000 Variable $600,000 Fixed 450,000 Fixed 300,000 Average total assets for 2017 are predicted to be $5,000,000. If the company desires a 10 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for the desired profit

Answers

Answer: 200%

Explanation:

First find the return required.

= 10% of total assets

= 10% * 5,000,000

= $500,000

The total manufacturing costs are:

= 250,000 + 450,000

= $700,000

We need to know the amount to increase the manufacturing costs by so that it covers both the desired return and the admin costs:

= (Desired return + Admin costs) / Manufacturing costs * 100%

= (500,000 + 600,000 + 300,000) / 700,000 * 100%

= 200%

Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 17 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 8.0 percent, what is the present value of this liability

Answers

Answer:

$202,701,713.58

Explanation:

Present value of this liability = Value of liability / ((1+r)^t)

Present value of this liability = $750 million / ((1+0.08)^17)

Present value of this liability = $750 million / (1.08)^17

Present value of this liability = $750 million / 3.7000180548

Present value of this liability = $202,701,713.5840815

Present value of this liability = $202,701,713.58

A student borrows $90,000 for business school at 9.0% stated annual interest with equal monthly payments over 9 years. Consider this as a loan with no payments or interest during school so that the problem structure is equivalent to a standard loan received one period before the first payment. How much is the monthly payment

Answers

Answer:

the monthly payment is $1,218.86

Explanation:

The computation of the monthly payment is shown below;

Given that

RATE = 9% ÷ 12 = 0.75%

NPER = 9 × 12 = 108

PV = -$90,000

FV = $0

The formula is shown below;

=PMT(RATE,NPER,PV,FV,TYPE)

After applying the above formula, the monthly payment is $1,218.86

Problems and Applications Q8 Suppose subway ridership in New York City declined by 4.3 percent after a fare increase of 25 cents to $1.50. Using the midpoint method, an estimate of the price elasticity of demand for subway rides is . True or False: According to your estimate, the Transit Authority's revenue rises when the fare increases. True False

Answers

Answer:

Price elasticity of demand = Percentage in quantity demanded / Percentage change in price

We already have the percentage change in quantity demanded as -4.3%.

We need to find the percentage change in price using the midpoint method.

= (New price - Old price) ÷ ((New Price + Old price) / 2)

Old price = 1.50 - 0.25 = $1.25

Percentage change in price = (1.50 - 1.25) ÷ ((1.50 + 1.25) / 2)

= 18.18%

Price elasticity of demand = -4.3% / 18.18%

= -0.24

According to your estimate, the Transit Authority's revenue rises when the fare increases. TRUE.

The statement is true because the price elasticity of demand here is Inelastic and when this is the case, revenue rises when the price of the good or service increases.

The price elasticity of demand is inelastic when it is less than 1 which is the case here.

Decruitment is the planned elimination of ________ in an organization. A) jobs
B) managerial hierarchy C) cross-functional teams D) departments

Answers

Answer:

C) cross-functional teams

Explanation:

Human resources management (HRM) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.

Hence, human resources managers are saddled with the responsibility of recruiting, downsizing, decruiting, managing and improving the welfare and working conditions of the employees working in an organization.

A cross-functional team can be defined as a group that comprises of employees from different functional areas within an organization.

Decruitment is the planned elimination of cross-functional teams in an organization.

This ultimately implies that, decruitment is a method adopted by human resource managers to reduce the number of various employees (workforce) working in an organization.

Similarly, downsizing refers to the planned elimination of jobs (job positions) existing in an organization.

Come and Go Bank offers your firm a discount interest loan with an interest rate of 9 percent for up to $21 million, and in addition requires you to maintain a 2 percent compensating balance against the face amount borrowed.
What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Effective annual rate= %

Answers

Answer: 10.11%

Explanation:

The effective annual interest rate on this lending arrangement will be calculated thus:

Interest Paid will be:

= 9% × $21 million

= 0.09 × $21 million

= $1.89 million

Amount Received will then be:

= (21million - 1.89million) - (21million)(0.02)

= $19.11 million - $0.42 million

= $18.69 million

Then, the effective annual rate will be:

= 1.89/18.69

= 10.11%

Therefore, the effective annual interest rate on this lending arrangement is 10.11%.

It has been said that Earned Value Management (EVM) came about because the Federal Government often used "Cost-plus" contractors with project organizations. Cost-plus contracting allows the contractor to recover full project development costs plus accumulate profit from these contracts. Why would requiring contractor firms to employ earned value management help the government hold the line against project cost overruns?

Answers

Answer:

Earned Value Management (EVM)

The Federal Government requires contractor firms to employ earned value management because it enables it to assess the work that has been completed against an established baseline plan in terms of technical, time, and cost performance.

Armed with this information, it is in a better position to make important project decisions and help to control over-spending.

Explanation:

Earned value management (EVM) as a integrated project management methodology details the project time schedule, costs, and scope to ensure correct measurement of project performance.  Using planned and actual values, EVM enables future predictions, improving the ability of project managers to adjust according to requirements.

At the quantity of 682 orders of Crispy Chicken Sandwich Tacos from Taco Bell, the marginal social benefit of a Crispy Chicken Sandwich Taco is $3.45 and the marginal social cost is $2.60. To produce the efficient quantity of Crispy Chicken Sandwich Tacos:_________

a. fewer Crispy Chicken Sandwich Tacos should be produced.
b. there should be no change in the amount of Crispy Chicken Sandwich Tacos produced.
c. More information on production costs is needed to determine the efficient level of Crispy Chicken Sandwich Tacos.
d. more Crispy Chicken Sandwich Tacos should be produced.

Answers

Answer:

Hence the correct option is D. more Crispy Chicken Sandwich Tacos should be produced.

Explanation:

Since the marginal benefit is greater than marginal social cost, Therefore more output can be produced.  

D. more Crispy Chicken Sandwich Tacos should be produced.

On January 1, Eastern College received $1,280,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The term spans four months beginning on January 2 and the college spreads the revenue evenly over the months of the term. What amount of tuition revenue should the college recognize on February 28? Assume the college prepares monthly financial statements.a. $640,000.b. $1,280,000.c. $880,000.d. $960,000.e. $320,000.

Answers

Answer:

e. $320,000

Explanation:

Calculation to determine amount of tuition revenue should the college recognize on February 28

Using this formula

Tuition revenue =Amount received/Term spans

Let plug in the formula

Tuition revenue=$1,280,000 /4 months

Tuition revenue=$320,000

Therefore amount of tuition revenue should the college recognize on February 28 is $320,000

According to the growth accounting studies, if you lived in a country where illiteracy was high and 40% of the children left school early and did not complete their education what would probably be the results for that country?
a. Average income in the country will see significant increases.
b. There would be both a human and economic loss.
c. The economic status of the country would continue to rise.
d. More technological breakthroughs would happen in this country.

Answers

Answer:

b. There would be both a human and economic loss.

Explanation:

In the case when the illiteracy was more and 40% of the children left the school so early that they didnt complete their education so here the result should be that there should be 2 losses i.e. human and economic loss as the children does not have any kind of knowledge so they would not get the job so easily

Therefore the option b is correct

Buying Paint April is at the hardware store and must decide whether to buy paint in 11 individual quart cans or to buy it in both gallon and quart cans. Here are the facts:
4 quarts
1 gallon
1 quart costs $4.39
1 gallon costs $13.99
What should April do?
1. Find the cost.
2. Find out how many gallons to buy 2 Gallons.
3. Find the cost. of 4 quarts.

Answers

Answer:

a) $41.15

b) Two gallons

c) $48.29

Explanation:

Total individual quarts to be purchased = 11

Number of gallons in 11 quarts = 11/4 = 2

Hence there are 2 gallons and 3 quarts in 11 individual quarts  

a) Total price  

2 * $ 13.99 + 3 * $4.39 = $41.15

b) Two gallons  

c) Cost of 4 quarts  

11 * $ 4.39 = $48.29

Consider the case of Cranked Coffee Company:
Cranked Coffee Company is a mature firm that has a stable flow of business. The following data was taken from its financial statements last year:
Annual sales $10,200,000
Cost of goods sold $6,630,000
Inventory $3,200,000
Accounts receivable $2,200,000
Accounts payable $2,400,000
Cranked Coffee’s CFO is interested in determining the length of time funds are tied up in working capital. Use the information in the preceding table to complete the following table. (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.)
Value
Inventory conversion period 46.93; 41.71; 176.71; or 39.11
Average collection period 27.25; 78.73; 24.38; or 22.94
Payables deferral period 32.50; 41.07; 33.24; or 132.13
Cash conversion cycle 39.62; 122.77; 37.54; 45.88
B: Both the inventory conversion period and payables deferral period use the average daily COGS in their denominators, whereas the average collection period uses average daily sales in its denominator. Why do these measures use different inputs?
Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold.
Current assets should be divided by sales, but current liabilities should be divided by the COGS.
C. Is there generally a positive or negative relationship between net working capital and the cash conversion cycle?(In other words, if a firm has a high level of net working capital, is it likely to have a high or low cash conversion cycle?)
There is a positive relationship between net working capital and the cash conversion cycle.
There is a negative relationship between net working capital and the cash conversion cycle.
D. What are the four key factors in a firm’s credit policy?
Credit terms, discounts, credit standards, and collection policy
Credit period, discounts, credit standards, and collection policy
E. If the credit terms as published by a firm were 2/15, net 60, this means the firm will:
allow a 2% discount if payment is received within 15 days of the purchase, and if the discount is not taken the full amount is due in 60 days.
allow a 15% discount if payment is received within 2 days of the purchase, and if the discount is not taken the full amount is due in 60 days.
F. The management at Cranked Coffee Company wants to continue its internal discussions related to its cash management. One of the finance team members presents the following case to his cohorts:
Case in Discussion
Cranked Coffee Company’s management plans to finance its operations with bank loans that will be repaid as soon as cash is available. The company’s management expects that it will take 40 days to manufacture and sell its products and 35 days to receive payment from its customers. Cranked Coffee’s CFO has told the rest of the management team that they should expect the length of the bank loans to be approximately 75 days.
Which of the following responses to the CFO’s statement is most accurate?
The CFO is not taking into account the amount of time the company has to pay its suppliers. Generally, there is a certain length of time between the purchase of materials and labor and the payment of cash for them. The CFO can reduce the estimated length of the bank loan by this amount of time.
The CFO’s approximation of the length of the bank loans should be accurate, because it will take 75 days for the company to manufacture, sell, and collect cash for its goods. All these things must occur for the company to be able to repay its loans from the bank.
Setting and implementing a credit policy is important for three main reasons:
It has a minor effect on sales, it influences the amount of funds tied up in receivables, and it affects bad debt losses.
It has a major effect on sales, it influences the amount of funds tied up in receivables, and it affects bad debt losses.

Answers

Answer:

Cranked Coffee Company

A. Cash conversion cycle = 122.77 days.

B. The measures use different inputs because:

Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold.

C. There is a negative relationship between net working capital and the cash conversion cycle.

D. Credit period, discounts, credit standards, and collection policy

E. If the credit terms as published by a firm were 2/15, net 60, this means the firm will:

allow a 2% discount if payment is received within 15 days of the purchase, and if the discount is not taken the full amount is due in 60 days.

F. The most accurate response to the CFO's statement is:

The CFO’s approximation of the length of the bank loans should be accurate, because it will take 75 days for the company to manufacture, sell, and collect cash for its goods. All these things must occur for the company to be able to repay its loans from the bank.

G. Setting and implementing a credit policy is important for three main reasons:

It has a major effect on sales, it influences the amount of funds tied up in receivables, and it affects bad debt losses.

Explanation:

a) Data and Calculations:

Annual sales             $10,200,000

Cost of goods sold    $6,630,000

Inventory                    $3,200,000

Accounts receivable $2,200,000

Accounts payable     $2,400,000

Inventory conversion period = Inventory ÷ (Cost of sales ÷ 365)

= $3,200,000/$6,630,000 * 365

= 176.17 days

Average collection period = Accounts receivable/Sales * 365

= $2,200,000/$10,200,000 * 365

= 78.73 days

Payables deferral period = Accounts payable/Cost of goods sold * 365

= $2,400,000/$6,630,000 * 365

= 132.13 days

Cash conversion cycle = Inventory conversion period + Average collection - Payables deferral period

= 176.17 + 78.73 - 132.13

= 122.77

Provide a recommendation to Kimishima on how Nintendo should formulate its strategy to compete successfully in the gaming industry in the next three to five years.

Should the company compete in software, hardware, or both? What platforms should it focus, if any? Were there ancillary revenue streams that the company could focus on, similar to other companies that had licensed their character IP? Alternatively, was it possible to create a corporate model similar to Legoland's or Walt Disney's?"

Answers

Answer:

Recommendation to Kimishima about Nintendo is given below:

Explanation:

Nintendo already have a goodwill with [now adults] because they have been playing Nintendo during their childhood, this goodwill can be revived by developing a software [Game] which is famous in Adults [Reality Game]. Also Nintendo can develop a hardware [Gaming Console] which should be compatible with other developers games and possibly cheaper in price to attract customers.

Nintendo already having goodwill, can develop a theme park with its characters and rides, this park can also have shops where Nintendo can sell its games and consoles.

barcain credit corp. wants to earn an effective annual return on its consumer loans of 12 percent per year. the bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers

Answers

Answer:

11.17%

Explanation:

Calculation to determine What interest rate is the bank required by law to report to potential borrowers

Required Effective Annual Rate = 12%

APR(Daily) = 365[(1.12)^1/365 - 1]

APR(Daily) = 365[(1.12)^0.0027-1]

APR(Daily) = 11.17%

Suppose jess resigns from her low paying job. After looking for a new job for two weeks she is highly frusterated and gives up looking for a better paying job. According to the U.S. Bureau of Labor Statistics, jess would:____.
A) be considered unemployed.B) be considered employed.C) be considered temporarily unemployed.D) not be considered as a part of the labor force.E) be considered as seasonally unemployed.

Answers

Answer:

D) not be considered as a part of the labor force.

Explanation:

Labour force is defined as a group of individuals in an economy that are either employed or unemployed.

Employed individuals have jobs and are not actively looking for other opportunities.

Unemployed individuals according to the U.S Bureau of Labour Statistics are those that are employed and actively looking for other opportunities or that have no work and are looking jobs.

However in the given scenario Jess resigns from her low paying job and after looking for a new job for two weeks she is highly frusterated and gives up looking for a better paying job. She is considered not part of the labour force because she is not actively seeking employment

According to the U.S. Bureau of Labor Statistics, Jess would not be considered as a part of the labor force.

What is the term Labor force about?

Labor force is defined as a group of individuals in an economy that are either employed or unemployed.

Employed individuals have jobs and are not actively looking for other opportunities.

However, in the given scenario Jess resigns from her low paying job and after looking for a new job for two weeks she is highly frustrated and gives up looking for a better paying job. She is considered not part of the labor force because she is not actively seeking employment.

Therefore, correct option is D.

Learn more about Labor force, refer to the link:

https://brainly.com/question/13962639

which activity would a consumer most likely preform

Answers

Explanation:

Consumer are individuals who buys products or services for personal use and not for manufacture or resale. Buying goods best describes the role of a consumer. Correct answer: A Because of this, consumers can be influenced by marketing and advertisements and they play a huge role in the marketing process.

Furthermore, what is one way economics can influence your daily life? by forcing a decision on a career path. by limiting your ability to save money. by helping you understand that every choice has a tradeoff.

please mark me as brain list

XYZ Industries makes heavy construction equipment. The standard for a crane calls for 20 direct labor-hours at $24 per direct labor-hour. During a recent period 875 cranes were made. The labor efficiency variance was $1,200 Unfavorable. How many actual direct labor-hours were worked

Answers

Answer:

17,550

Explanation:

Labor efficiency variance = Standard rate * (Actual hours - Standard hours)

$1200 = $24 * (Actual hours - 875*20)

50 = Actual hours - 17,500

Actual hours = 17,500 + 50

Actual hours = 17,550

So, the actual direct labor-hours which were worked is 17,550.

There is overwhelming evidence that environmental and situational factors strongly affect leadership.Of the following,which is the best example of one of those situational factors?
A) Positive personality
B) Pragmatism about solutions
C) Seating arrangements
D) Diversity of network contacts

Answers

Answer:

C) Seating arrangements

Explanation:

A leader can be defined as an individual who is saddled with the responsibility of controlling, managing and maintaining a group of people under him or her.

Some types of power expressed by leaders are referent power, coercive, etc.

Situational leadership is a leadership style which typically involves the leader adapting his or her style to match or suit the current work environment and fits the level of development of the followers being led.

Generally, environmental and situational factors have been proven beyond reasonable doubt to strongly and overwhelmingly affect leadership. The best example of one of those situational factors is seating arrangements of the employees working in an organization. A leader who is the head of a team or department might choose a particular seating arrangement that best suit the current work environment based on his or her style, thought, and perspective.

The relationship between current assets and current liabilities is called:_______
a) the matching principle.
b) useful in determining income.
c) useful in evaluating a company's liquidity.
d) useful in determining the amount of a company's long-term debt.

Answers

Answer:

Option "C" is correct.

Explanation:

Option "C" is correct because the current assets and current liabilitites are used to find the liquidity. The current liabilities are the one that has to pay within the year. Similarly, the current assets are the ones that can be converted into cash within the year. Therefore, the evaluation of both gives the idea of the company's liquidity.

A company had the following information taken from various accounts at the end of the year:
Sales discounts $ 41,000
Deferred revenues $ 32,000
Total revenues $ 459,000
Purchase discounts $ 15,000
Sales allowances $ 35,000
Accounts receivable $ 205,000
What was the company's net revenues for the year?

Answers

Answer:

Net Revenue = $383000

Explanation:

Below is the calculation for net revenue:

Net revenue = Total revenue - Sales discount - sales allowances

Given Total revenue = 459000

Sales discount = 41000

Sales allowances = 35000

Net Revenue = 459000 - 41000 - 35000

Net revenue = 459000 - 76000

Net Revenue = $383000

The net revenue of the company for the year is $383000.

What are the purchase goods for cash Rs. 12,000 and for credit Rs. 8,000 (journal entries)?

Answers

Explanation:

Journal entries

Books of (----- LTD)

Particular                             Amount            Amount

Purchase     A/c Debit         20,000

Cash            A/c Credit                                12,000

Creditor       A/c Credit                                 8,000

(Being goods purchase on cash and credit)

Hillside issues $2,700,000 of 7%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,304,790.

Required:
Prepare the January 1, 2019, journal entry to record the bonds’ issuance.

Answers

Answer: Dr Cash $3,304,790

Cr Bonds payable $2,700,000

Cr Premium on bond issued $604,790

Explanation:

The journal entry to record the bonds’ issuance will be illustrated below:

January 1, 2019

Debit Cash $3,304,790

Credit Bonds payable $2,700,000

Credit Premium on bond issued $604,790

Star Corp., an accrual-method C corporation, incurred the following expenses in 2020 (all of which are ordinary and neccessary unless the facts indicate otherwise): Office rent: $50,000 CEO compensation: $1,500,000 Salary paid to janitor $250,000 Business meals: $60,000 (100% of the amount paid) Client entertainment $100,000 (100% of the amount paid) Traffic fines: $5,000 Advertising $70,000 Taxes & licenses (state, local & payroll) $30,000 Life insurance policy on CEO - premiums: $12,000 Average office rents in the area run $50,000-$55,000/year for similar office space. Star Corp's janitor is the CEO's sister. Reasonable salary for a janitor with similar experience, job description and work hours is $20,000/year. The CEO often runs late to important meetings, and he has a tendency to speed (and get speeding tickets) on his way. Star Corp. pays the speeding tickets. Star Corp. is the beneficiary on the life insurance policy. What is Star Corp.'s total deductible business expenses for the year?

Answers

Answer:

$1,842,000

Explanation:

Calculation to determine Star Corp.'s total deductible business expenses for the year

STAR CORP.'S total deductible business expenses

Office rent $50,000

CEO Compensation $1,500,000

Salary paid to Janitor $20,000

Business meals $60,000

Client entertainment $100,000

Advertising $70,000

Taxes & Licenses $30,000

Life insurance policy on CEO-Premium $12,000

Total $1,842,000

Therefore Star Corp.'s total deductible business expenses for the year is $1,842,000

Borques Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the past year were as follows:

Variable costs per unit:
Direct materials $2.85
Direct labor $1.92
Variable overhead $1.60
Variable selling $0.90
Fixed costs per year:
Fixed overhead $180,000
Selling and administrative $96,000

During the year, Borques produced 200,000 wooden pallets and sold 204,300 at $9 each. Borques had 8,200 pallets in beginning finished goods inventory; costs have not changed from last year to this year. An actual costing system is used for product costing.

Required:
a. What is the per-unit inventory cost that is acceptable for reporting on Borques’s balance sheet at the end of the year?
b. How many units are in ending inventory?
c. Calculate absorption-costing operating income.

Answers

Answer:

Borques Company

a. Unit inventory cost = $7.27

b. Ending inventory = 3,900 units

c. Absorption-costing operating income = $73,569

Explanation:

a) Data and Calculations:

Variable costs per unit:

Direct materials      $2.85

Direct labor             $1.92

Variable overhead $1.60  $6.37

Variable selling     $0.90   $7.27

Fixed costs per year:

Fixed overhead                $180,000

Selling and administrative $96,000  $276,000

Selling price per unit = $9

Acceptable per-unit inventory cost:

Variable product cost per unit = $6.37

Total variable production cost = $1,274,000

Fixed production cost =                   180,000

Total production cost =              $1,453,000

Unit inventory cost = $7.27 ($1,453,000/200,000)

b. Ending inventory

Beginning inventory   8,200

Production units = 200,000

Units available       208,200

Sales units =          204,300

Ending inventory       3,900

c. Absorption Costing Operating Income:

Sales Revenue                 $1,838,700 ($9 * 204,300)

Cost of goods sold             1,485,261 ($7.27 * 204,300)

Gross profit                        $353,439

Selling expenses:

Variable ($0.90 * 204,300) 183,870

Fixed                                     96,000

Total selling expenses    $279,870

Operating income             $73,569

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost, factory overhead is charged to expense as it is incurred because it is a period cost.
A. True
B. False

Answers

Answer:

B. False

Explanation:

The period cost is that cost that indirectly related to the process of the production. The sales, general and admin cost should be considerd as the period cost

So as per the given situation, the factory overhead that charged for an expense as incurred so this does not represent the period cost

Therefore the given statement is false

Grammy's Bakery had the following information for the bi-weekly pay period ending June 30: earnings
Employee Pay rate Hours Cumulative earnings Department Federal
Name worked prior to current payroll income tax
withheld
P Ganster $2.000 salaried 12000 itchen 86.00
T. Baker $10.00/hour 50 $6,500 Office $22.00
Assume:
FICA-OASDI applied to the first $117,000 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%
FUTA applied to the first $7,000 at a rate of 0.6%
SUTA applied to the first $7,000 at a rate of 5.4%
State income tax is 3.8%
Given the information above, what would be the amount applied to FUTA Payable?
a. Debit $3.00
b. Debit $20.40
c. Credit $3.00
d. Credit $20.40

Answers

Answer:

c. Credit $3.00

Explanation:

The computation of the amount applied to FUTA Payable is shown below:

The Current Earnings for T. Baker is

= 50 × 10

= $500

And,  

The FUTA applied is

= 6% of $500

= $3

So here we credit the futa payable by $3

Therefore the option c is correct

And, the rest of the options are wrong

Develop the three-week moving average forecasts for this time series. Compute MSE and a forecast for week 7 (to 2 decimals if necessary).Week Time Series ForecastValue 1 18 2 15 3 16 4 13 5 17 6 16MSE:
The forecast for week 7:
Use = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for week 7.Week Time Series Forecast
Value
1 18
2 15
3 16
4 13
5 17
6 16MSE:
The forecast for week 7:
Compare the three-week moving average forecast with the exponential smoothing forecast using = 0.2. Which appears to provide the better forecast based on MSE?

Answers

Answer:

a. We have:

MSE: 63.03

The forecast for week 7: 15.33

b. We have:

MSE: 47.49

The forecast for week 7: 16.35

c. The exponential smoothing forecast using = 0.2. appears to provide the better forecast based on MSE.

Explanation:

a. Develop the three-week moving average forecasts for this time series. Compute MSE and a forecast for week 7 (to 2 decimals if necessary).

Note: See Part a of the attached excel file for the Calculations of Forecast, Error, and Error^2.

From the attached excel file, we can have:

MSE = Mean squared error = Total of Error^2 / Number of observation under the Error^2 = 252.11 / 4 = 63.03

The forecast for week 7 = 15.33

b. Use = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for week 7.

Note: See Part b of the attached excel file for the Calculations of Forecast, Error, and Error^2.

From the attached excel file, we can have:

MSE = Mean squared error = Total of Error^2 / Number of observation under the Error^2 = 284.96 / 6 = 47.49

The forecast for week 7 = 16.35

Note that under exponential smoothing, forecast for week 2 has to be the Time Series Value for week 1.

b. Compare the three-week moving average forecast with the exponential smoothing forecast using = 0.2. Which appears to provide the better forecast based on MSE?

Since 47.49 MSE of the exponential smoothing forecast using = 0.2 is less than 63.03 MSE of the three-week moving average forecast, it implies that  the exponential smoothing forecast using = 0.2. appears to provide the better forecast based on MSE.

Mary and Larry are purchasing a house for $198,000. They are making a down payment of $20,000, and they are approved for a conforming loan. How much should they expect to receive in seller help if the seller agrees to contribute the maximum amount

Answers

Answer:

$11,880

Explanation:

The computation of the amount that should be expected to recieve in seller is shown below:

The maximum seller contribution should be 6% for confirming the loan as the down payment is more than 10%

So, the amount should be

= $6% of $198,000

= $11,880

The number of times interest charges are earned is computed as

a. net income plus interest charges, divided by interest charges.
b. income before income tax plus interest charges, divided by interest charges.
c. net income divided by interest charges.
d. income before income tax divided by interest charges.

Answers

Answer:

B)income before income tax plus interest charges, divided by interest charges.

Explanation:

Interest charges can be regarded as

sum of interest that is on one's credit card account, It can be be defined base on transaction type, such as

cash advances , purchases, or balance transfers. If one is making less than full balance payment or making payment after due date, then one would be charged. Another point is that there is is no grace period for cash advances and balance transfers, i.e as the transaction is been made, there would be accrual of interest. Interest rate is a term for amount that is been charged by lender for usage of assets, and it's been expressed in term of percentage of the principal. It should be noted The number of times interest charges are earned is computed as income before income tax plus interest charges, divided by interest charges.

Hunter's Hut is considering a project that will require additional inventory of $150,000 and will increase accounts payable by $125,000. Accounts receivable is currently $300,000 and is expected to increase by 10 percent if this project is accepted. What is the project's initial cash flow for net working capital

Answers

Answer:

Hnters

Explanation:

Hunter's Hut is considering a project that will require additional inventory of $150,000 and will increase accounts payable by $125,000. Accounts receivable is currently $300,000 and is expected to increase by 10 percent if this project is accepted. What is the project's initial cash flow for net working capital

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