Answer and Explanation:
The journal entries are shown below:
a. Account receivable Dr $25,000
To Sales revenue $25.000
(Being goods sold on account)
b. Sales returns & allowance Dr $2,500
To Account receivable $2,500
(being returned goods is recorded)
c. Cash Dr $21,825
Sales discount Dr ($22,500 × 3%) $675
To Account receivable ($25,000 - $2,500) $22,500
(being cash is recorded)
On December 30, 2017, the Board of Directors of Blue Manufacturing, Inc. committed to a plan to discontinue the operations of its Owl division. Blue estimated that Owl's 2018 operating loss would be $750,000 and that the fair value of Owl's facilities was $450,000 less than their carrying amounts. The estimate for the 2018 operating loss turned out to be correct. Owl's 2017 operating loss was $1,000,000, and the division was actually sold for $400,000 less than its carrying amount in 2018. Blue's effective tax rate is 35%. In its 2017 income statement, what amount should Blue report as loss from discontinued operations
Answer:
$942,500
Explanation:
Calculation to determine what amount should Blue report as loss from discontinued operations
Using this formula
Loss from discontinued operations=[(Operating loss+Fair value)*Tax rate]
Let plug in the formula
Loss from discontinued operations=[($1,000,000+ $450,000)* (100% - 35% tax rate)]
Loss from discontinued operations=$1,450,0000*65%
Loss from discontinued operations= $942,500
Therefore what amount should Blue report as loss from discontinued operations is $942,500
Quark Inc. just began business and made the following four inventory purchases in June: June 1 150 units $ 825 June 10 200 units 1,120 June 15 200 units 1,140 June 28 150 units 885 $3,970 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is
Answer:
$1,170
Explanation:
The amount allocated to ending inventory for June using FIFO inventory method is computed as;
= $885 + [($1,140 ÷ 200) × (200 - 150]
= $88 5 + ($5.7 × 50)
= $885 + $285
= $1,170
define investment bank.
Answer:
a bank that purchases large holdings of newly issued shares and resells them to investors.
ENETEAU CORPORATION
Comparative Balance Sheet
2020 2019
Assets
Cash $37,000 $31,000
Accounts receivable (net) 80,000 60,000
Prepaid insurance 22,000 17,000
Land 18,000 40,000
Equipment 70,000 60,000
Accumulated depreciation (20,000) (13,000)
Total assets $207,000 $195,000
Liabilities and Stockholder's Equity
Accounts payable $12,000 $6,000
Bonds payable 27,000 19,000
Common stock 140,000 115,000
Retained earnings 28,000 55,000
Total liabilities and stockholder's equity $207,000 $195,000
Additional information:
1. Net loss for 2020 is $12,000. Net sales for 2020 are $250,000.
2. Land was sold for cash at a loss of $2,000. This was the only land transaction during the year.
3. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
4. The company issued and retired bonds in the current year. Retirement of bonds was $12,000.
5. Equipment was purchased for $22,000.
6. Stock was issued for $25,000
Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.
Answer:
See below
Explanation:
Statement of cash flows for the year ended December 31, 2020 using the indirect method.
Cash flow from operating activities:
Net loss = $12,000
Adjustment to reconcile net loss with cash flows from operating activities:
Depreciation = ($20,000 + $10,000 - $13,000) = $7,000
Loss on sale of land = $2,000
Increase in accounts receivable = ($20,000)
Increase in prepaid expense = ($5,000)
Increase in accounts payable = $6,000
Net cash used in operating activities = ($12,000)
Cash flow from investing activities
Sale of land = ($40,000 - $18,000 - $2,000) = $20,000
Sale of equipment = $5,000
Net cash generated by investing activities = $25,000
Cash flow from financing activities
Retirement of bond = ($12,000)
Proceeds from issuance of bonds = $20,000
Net cash used by financing activities = $8,000
Net increase in cash = $6,000
Add: beginning cash balance = $31,000
Ending cash balance = $37,000
Workings
• Calculation of depreciation
The accumulated depreciation at the end of the year 2020 = ($20,000)
Hence;
Accumulated depreciation at the end of the year 2020 = ($13,000)
Increase in accumulated depreciation during 2020 = $20,000 - $13,000 = $7,000
Add: accumulated depreciation on equipment sold during 2017 = $10,000
Total depreciation expense for 2020 = $7,000 + $10,000 = $17,000
• Calculation of proceeds from sale of land:
Cost of land = $40,000 - $18,000 = $22,000
Loss on sale of land = $2,000
Therefore,
Proceeds from sale of land = cost of land sold - loss on sale of land
= $22,000 - $2,000
= $20,000
• Calculation of issuance of bonds payable during 2020
The bonds payable at the end of year 2019 = $19,000
Hence,
Bonds payable at the end of year 2020 = $27,000
Retirement of bonds during year 2020 = $12,000
Therefore,
Bonds issued during 2020 = $27,000 + $12,000 - $19,000 = $20,000
Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor that would provide 2,400 units of product PQ107 for Valters for a price of $150,000. If Quirch does not purchase these parts from the subcontractor it must produce them in-house with the following unit costs: Cost per Unit Direct materials $31 Direct labor 19 Variable overhead 8 In addition to the above costs, if Quirch produces part PQ107, it would have a retooling and design cost of $9,800. The relevant costs of producing 2,400 units of product PQ107 internally are:______.
a. $149,000.
b. $129.800.
c. $150,000.
d. $164,200.
e. $148.300.
Answer:
a. $149,000
Explanation:
Calculation to determine what The relevant costs of producing 2,400 units of product PQ107 internally are
Relevant Costs = (2,400 x $31) + (2,400 x $19) + (2,400 x $8) + $9,800
Relevant Costs=$74,400+$45,600+$19,200+$9,800
Relevant Costs= $149,000
ThereforeThe relevant costs of producing 2,400 units of product PQ107 internally are $149,000
Zeibart Company purchases equipment for $225,000 on July 1, 2016, with an estimated useful life of 10 years and expected salvage value of $25,000. Straight-line depreciation is used. On July 1, 2020, economic factors cause the market value of the equipment to decline to $90,000. On this date, Zeibart examines the equipment for impairment and estimates $125,000 in future cash inflows related to use of this equipment.
Required:
a. Is the equipment impaired at July 1, 2020?
b. If the equipment is impaired on July I, 2020, compute the impairment loss and prepare a journal entry to record the loss.
Answer:
a. Yes, the equipment is impaired at July 1, 2020.
b. Impairment loss is $20,000. And the journal entries are as follows:
Debit Impairment loss for $20,000
Debit Accumulated depreciation for $80,000
Credit Equipment for $100,000
Explanation:
a. Is the equipment impaired at July 1, 2020?
This can be determined as follows:
Annual depreciation = (Cost - Salvage value) / Estimated useful life = ($225,000 - $25,000) / 10 = $20,000
Accumulated depreciation till July 1, 2020 = Annual depreciation * Number of years from July 1, 2016 to July 1, 2000 = $20,000 * 4 = $80,000
Net book value at July 1, 2020 = Cost - Accumulated depreciation till July 1, 2020 = $225,000 - $80,000 = $145,000
Equipment recoverable amount = Estimated future cash inflows related to use of the equipment = $125,000
Since the net book value of $145,000 is greater than the recoverable amount of the equipment of $125,000, this implies that the equipment is impaired at July 1, 2020.
b. If the equipment is impaired on July I, 2020, compute the impairment loss and prepare a journal entry to record the loss.
Accumulated depreciation till July 1, 2020 = $80,000
Estimated future cash inflows related to use of the equipment = $125,000
Fair market value = $90,000
Recoverable amount = Higher of estimated future cash inflows related to use of the equipment or Fair market value = $125,000
Net book value at July 1, 2020 = $145,000
Impairment loss = Net book value at July 1, 2020 - Recoverable amount = $145,000 - $125,000 = $20,000
The journal entries will then look as follows:
Date Details Debit ($) Credit ($)
01 Jul 2020 Impairment loss 20,000
Accumulated depreciation 80,000
Equipment 100,000
(To record impairment loss.)
Accounting records for NIC Enterprises (NICE) for September show the following (each entry is the total of the actual entries for the account for the month). Account Titles Debit Credit Work-in-Process Inventory (Direct Labor) 100,000 Wages Payable 100,000 Direct Materials Inventory 1,112,000 Accounts Payable 1,112,000 Finished Goods Inventory 1,770,000 Work-in-Process Inventory 1,770,000 Cost of Goods Solda 1,710,000 Finished Goods Inventory 1,710,000 aThis entry does not include any over- or underapplied overhead. Over- or under applied overhead is written off to Cost of Goods Sold once for the month. For September, the amount written off was 3 percent of overhead applied for September. Overhead is applied on the basis of direct labor costs. The Work-in-Process ending account balance on September 30 was 170 percent of the beginning balance. The direct material ending inventory balance on September 30 was $36,000 less than the beginning balance. The finished goods beginning balance on September 1 was $203,000. The September income statement shows revenues of $2,850,000 and a gross profit of $1,167,000. Required: a. What was the Finished Goods inventory on September 30
Answer: $263,000
Explanation:
Based on the information given, the finished goods inventory on September 30 will be calculated as:
= Begining inventory + Transfers in - Transfers out.
= $203000 + $1,770,000 - $1,710,000
= $263,000
Therefore, finished goods inventory on September 30 was $263,000
To purchase a used automobile, you borrow $10,000 from Loan Shark Enterprises. They tell you the interest rate is 1% per month for 35 months. They also charge you $200 for a credit investigation, so you leave with $9,800 in your pocket. The monthly payment they calculated for you is $385.71/month.
If you agree to these terms and sign their contract, what is the actual APR (annual percentage rate) that you are paying?
Answer:
The actual APR (annual percentage rate) that you are paying is 12.69%.
Explanation:
The actual annual percentage rate (APR) can be calculated using the Annual Percentage Rate (APR) formula as
follows:
APR = (((Fees + Interest accrued) / Principal / n) * Number of months in a year) * 100 ……………… (1)
Where;
APR = ?
Fees = Credit investigation charged = $200
Principal = Amount borrowed = $10,000
Total accrued amount = Principal * (1 + (Monthly interest rate * Number of months of loan tenure)) = $10,000 * (1 + (1% * 35)) = $13,500
Interest accrued = Total accrued amount - Principal = $13,500 - $10,000 =$3,500
n = Number of months of loan term = 35
Number of months in a year = 12
Substituting the values into equation (1), we have:
APR = (((200 + 3500) / 10000 / 35) * 12) * 100
APR = 12.69%
Therefore, the actual APR (annual percentage rate) that you are paying is 12.69%.
Help soon!
A four-year college-level degree is called____.
(1). A bachelor's degree
(2). An associate's degree
(3). A career degree
A two-year college-level degree is called____.
(1). A bachelor's degree
(2). An associate's degree
(3). A career degree
_____ is a program that is usually no longer than one or two years, ending with a certificate, degree, or diploma in a specialized technical field.
(1). A career college
(2). A traditional collage
(3). An apprenticeship
______ is an on-the-job training experience in which the learner works at a job under the direction of an expert.
(1). A career college
(2). A traditional collage
(3). An apprenticeship
Answer:
A four-year college-level degree is called
A.) ✔ a bachelor’s degree.
A two-year college-level degree is called
B.) ✔ an associate degree.
_______is a program that is usually no longer than one or two years, ending with a certificate, degree, or diploma in a specialized technical field.
B.) ✔ A career college.
_______is an on-the-job training experience in which the learner works at a job under the direction of an expert.
C.) ✔ An apprenticeship
Explanation:
I hope this helps!!! :))
There are different kinds of program. The answers are below;
A four-year college-level degree is called a bachelor’s degree.
A two-year college-level degree is called an associate degree.
A career college is a program that is usually no longer than one or two years.
An apprenticeship is an on-the-job training experience in which the learner works at a job under the direction of an expert.
What is an apprenticeship?An apprenticeship is known to be a set up of
job training and classroom learning together that tends to help one to a trade credential.
Learn more about apprenticeship from
https://brainly.com/question/25689052
Illumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year: Budgeted costs of operating the plant for 2000 to 3000 hours: Fixed operating costs per year $480,000 Variable operating costs $800 per hour Budgeted long-run usage per year: Flashlight Division 1500 hours Night Light Division 700 hours Practical capacity 3000 hours Assume that practical capacity is used to calculate the allocation rates. Actual usage for the year by the Flashlight Division was 1400 hours and by the Night Light Division was 600 hours. If a single-rate cost-allocation method is used, what amount of operating costs will be allocated to the Night Light Division
Answer:
Allocated operating costs= $576,000
Explanation:
First, we need to calculate the predetermined operating costs allocation rate:
Predetermined operating costs allocation rate= total estimated operating costs for the period/ total amount of allocation base
Predetermined operating costs allocation rate= (480,000 / 3,000) + 800
Predetermined operating costs allocation rate= $960 per hour
Now, we can allocate overhead to Night Light Division:
Allocated operating costs= Predetermined operating costs allocation rate* Actual amount of allocation base
Allocated operating costs= 960*600
Allocated operating costs= $576,000
As a supervisor you observe a female member of your staff is being harassed
both verbally and at times physically. She seems to disapprove but does not
make any reports. How would you go about dealing with this situation?
Answer:
Pull into the office and have a talk about it, then talk about ways to deal with it
Explanation:
Sometimes in these situations they have been traumatized by the harassment to report it (im saying she may be too scared to report it).
Apple Inc. just paid a dividend of $3 per share. You expect that Apple's dividend will increase at the rate of 10% per year for the next 10 years. After that, you expect that Apple Inc. will increase its dividend at the rate of 3% per year forever. The required rate of return for Apple is 20%. What is the price of Apple just after the current dividend was paid?
Answer:
The price of Apple just after the current dividend was paid is $26.79.
Explanation:
Note: See the attached file for the calculation of present values for year 1 to 10 dividends.
From the attached excel file, we have:
Previous year dividend in year 1 = Dividend just paid = $3
Total of dividends from year 1 to year 10 = $19.17617169980840
Year 10 dividend = $7.781227380
Therefore, we have:
Year 11 dividend = Year 10 dividend * (100% + Perpetual dividend growth rate) = $7.781227380 * (100% + 3%) = $8.0146642014
Price at year 10 = Year 11 dividend / (Rate of return - Perpetual dividend growth rate) = $8.0146642014 / (20% - 3%) = $47.1450835376471
PV of price at year 10 = Price at year 10 / (100% + Required return)^Number of years = $47.1450835376471 / (100% + 20%)^10 = $7.61419419713817
Price of Apple = Total of dividends from year 1 to year 8 + PV of price at year 10 = $19.17617169980840 + $7.61419419713817 = $26.79
Carol Beal is the export manager at Gudrun Sjoden USA, a licensed distributor for a Swedish designer. Carol has North America and all of Asia in her territory. She has just formed a joint venture to run retail branches in Tokyo, Shanghai, and Seoul. Her plan is to ship directly from the Gudrun Sjoden warehouse in Stockholm. Her Asian partner has requested she ship to her DDP, but Carol would prefer to ship Ex Works. Carol knows that there are critical differences between the two terms of sale and is reviewing what decision to make. She wants to keep her U.S. expenses as low as possible, and she would be funding the shipping out of the United States. She also wants to continue to build a good, solid, trusting relationship with her joint venture partner.
Which statement is true Carol ships goods Ex Works?
a. The buyer would cover shipping and insurance costs assume the risk the door.
b. The seller would cover all insurance costs while the buyer would cover the cost of shipping.
c. The goods be shipped from Stockholm at the seller's expense.
d. The seller would cover all shipping and insurance costs and assume the risk at the factory door.
e. The buyer would cover all insurance costs while the seller would cover the cost of shipping
Answer:
a. The buyer would cover all shipping and insurance costs and assume the risk at the factory door.
Explanation:
According to the given situation the exworks means that the seller fulfill his duty for delivering the goods when the goods are available at his place i.e. works, factory or warehouse to the buyer. Also the buyer would responisble to bear all the cost and the risk involved while taking the goods from the seller place to the final destination
Hence, the option a is correct
You work for a large electronics distributor. Your job is to provide training and to be a troubleshooter and consultant for users of the company's local area network. In the past, your job has required you to spend a lot of time travelling from building to building to assist users. Now, however, you have a utility program called LANSCAPE that lets you monitor the activities of any user who is logged in. You can see exactly what is being displayed on the user's screen, and can even take over the session if you need to. Your boss tells you, in confidence, that she suspects one or more employees of dealing with illegal drugs on company premises. She has no proof but suspects that they are using the phone and maybe even the computer to make deals. She asks you to monitor the employees and to provide her with a log of all the computer activities of the suspected employees.
1. What are the ethical considerations involved?
2. What are the legal considerations with what you are being asked to do?
3. Your boss asks you to install LANSCAPE on the workstation in her office so she can randomly check on the suspects and gather evidence. What are the ethical considerations involved?
4. What are the legal considerations with installing the software on your boss’s computer?
Answer:
1. It is not ethical to monitor personal activities of the employees but if something illegal is happening it needs to be uncovered.
2. It is against the law to evade someone's privacy, if one of the employee comes to know about this monitoring the employee can sue the Company.
3. It is not ethical to monitor someone's phone and workstation and she might be willing to check on every employee and not just those suspected, installing LANDSCAPE on her workstation can be a serious breach of confidentiality.
4. It could also be illegal to install such a software which can evade someone's confidentiality, and the company and individuals involved in installing the software can face legal issues.
Explanation:
1. It is not ethical to monitor personal activities of the employees but if something illegal is happening it needs to be uncovered.
2. It is against the law to evade someone's privacy, if one of the employee comes to know about this monitoring the employee can sue the Company.
3. It is not ethical to monitor someone's phone and workstation and she might be willing to check on every employee and not just those suspected, installing LANDSCAPE on her workstation can be a serious breach of confidentiality.
4. It could also be illegal to install such a software which can evade someone's confidentiality, and the company and individuals involved in installing the software can face legal issues.
The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Blue Spruce Corp. at December 31, 2017.
Common Stock ($2 stated value) $3,120,000
Paid-in Capital in Excess of Par Value—Preferred Stock 87,750
Paid-in Capital in Excess of Stated Value—Common Stock 2,047,500
Preferred Stock (6%, $100 par, noncumulative) 1,170,000
Retained Earnings 2,601,300
Treasury Stock (23,400 common shares) 140,400
Prepare the stockholders’ equity section of the balance sheet at December 31, 2017.
Answer:
Stockholders’ equity section of the balance sheet at December 31, 2017.
Common Stock :
Common Stock ($2 stated value) $3,120,000
Paid-in Capital in Excess of Stated Value $2,047,500
Preferred Stock :
Preferred Stock (6%, $100 par, noncumulative) $1,170,000
Paid-in Capital in Excess of Par Value—Preferred Stock $87,750
Treasury Stock :
Treasury Stock (23,400 common shares) $140,400
Retained Earnings $2,601,300
Total $9,166,950
Explanation:
The Stockholders’ equity section of the balance sheet at December 31, 2017 has been prepared above for Blue Spruce Corp.
If The Wall Street Journal lists a stock's dividend as $1, then it is most likely the case that the stock: Multiple Choice pays $1 per share per quarter. paid $.25 per share per quarter for the past year. paid $1 during the past quarter, with no future dividends forecast. is expected to pay a dividend of $1 per share at the end of next year.
Answer:
paid $.25 per share per quarter for the past year
Explanation:
A stock is ownership rights purchased by investors in a public company. Holders of stock are called stockholders and they are regarded as owners of the company.
Stockholders are paid dividends. Dividends are a proportion of a company's profits paid to shareholders.
If the stock's dividend is $1, it means it either paid $1 the past year or paid $.25 per share per quarter for the past year
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 22 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $4.20 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs. 2. Prepare the appropriate journal entry to record the award of RSUs on January 1, 2021. 3. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. 4. Prepare the appropriate journal entry to record compensation expense on December 31, 2022. 5. Prepare the appropriate journal entry to record compensation expense on December 31, 2023. 6. Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.
Answer:
1.$92.4million
2. January 1, 2021
No journal entry
3. December 31, 2021
December 31, 2022
Dr Compensation expense $30.8million
Cr Paid in capital -restricted stock $30.8million
4. December 31, 2022
Dr Compensation expense $30.8million
Cr Paid in capital -restricted stock $30.8million
5. December 31, 2023
Dr Compensation expense $30.8million
Cr Paid in capital -restricted stock $30.8million
6. December 31, 2023
Dr Paid in capital -restricted stock $92.4million
Cr Common stock $22 million
Cr Paid in capital-excess of par $70.4 million
Explanation:
1. Calculation to determine the total compensation cost pertaining to the RSUs
Total compensation cost =$4.20 fair value per share × 22 million shares represented by RSUs granted
Total compensation cost=$92.4million
Therefore the total compensation cost pertaining to the RSUs is $92.4million
2. Preparation of the appropriate journal entry to record the award of RSUs on January 1, 2021
January 1, 2021
No journal entry
3.Preparation of the appropriate journal entry to record compensation expense on December 31, 2021
December 31, 2021
Dr Compensation expense $30.8million
Cr Paid in capital -restricted stock $30.8million
($92.4million/3 years)
4. Preparation of the appropriate journal entry to record compensation expense on December 31, 2022
December 31, 2022
Dr Compensation expense $30.8million
Cr Paid in capital -restricted stock $30.8million
($92.4million/3 years)
5. Preparation of the appropriate journal entry to record compensation expense on December 31, 2023.
December 31, 2023
Dr Compensation expense $30.8million
Cr Paid in capital -restricted stock $30.8million
($92.4million/3 years)
6. Preparation of the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.
December 31, 2023
Dr Paid in capital -restricted stock $92.4million
Cr Common stock $22 million
Cr Paid in capital-excess of par $70.4 million
($92.4million-$22 million)
1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)
Answer:
1-a. Total Contribution margin is $210,000 and Net operating income is $28,000.
1-b. Degree of Operating Leverage = 7.50
2-a. The expected percentage increase in net operating income for next year is 150%.
2-b. Expected amount of Net Operating Income is $70,000.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed costs associated with the game total $182,000 per year, and variable costs are $6 per game. Production of the game is entrusted to a printing contractor. Variable costs consist mostly of payments to this contractor.
Required:
1-a. Prepare a contribution format income statement for the game last year.
1-b. Compute the degree of operating leverage.
2. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption:
a. What is the expected percentage increase in net operating income for next year?
b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)
Explanation of the answer is now provided as follows:
1-a. Prepare a contribution format income statement for the game last year.
The contribution format income statement for the game last year can be prepared as follows:
Magic Realm, Inc.
Contribution Income Statement
For Last Year
Details Total ($) Per Unit ($)
Sales 300,000 20
Variable cost (90,000) (6)
Contribution margin 210,000 14
Fixed expense (182,000)
Net operating income 28,000
1-b. Compute the degree of operating leverage.
Degree of Operating Leverage = Contribution Margin / Operating Income = $210,000 / $28,000 = 7.50
2-a. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: What is the expected percentage increase in net operating income for next year?
Since:
Degree of Operating Leverage = Percentage change in Operating Income / Percentage change in Sales
Substituting the relevant values, we have:
7.50 = Percentage change in Operating Income / 20%
Percentage change in Operating Income = 7.5 * 20% = 150%
Therefore, the expected percentage increase in net operating income for next year is 150%.
2-b. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)
This can be calculated as follows:
Change in Net Operating Income = 150% * $28,000 = $42,000
Expected amount of Net Operating Income = Current Net Operating Income + Change in Net Operating Income = $28,000 + $42,000 = $70,000
Compare and contrast the three most common types of healthcare indemnity plans PLEASE I NEED THIS ANSWER BY MIDNIGHT
Answer:
Health maintenance organizations (HMOs)
Exclusive provider organizations (EPOs)
Point-of-service (POS) plans.
Preferred provider organizations (PPOs)
Explanation:
The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation.
Production:
10,000 units started which is comprised of 7,000 units finished and transferred out and 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs.
Manufacturing costs:
Materials $33,000
Labor $21,000
Overhead $36,000
Required:
Prepare a production cost report.
Answer:
Quick Furniture Company
The Sanding Department
Production Report
For the month of March 2017:
Production Cost Report:
Materials Conversion Total
Manufacturing costs $33,000 $57,000 $90,000
Cost per equivalent unit:
Manufacturing costs $33,000 $57,000
Equivalent units 10,000 7,600
Cost per equivalent unit $3.30 $7.50
Cost assigned to:
Units transferred out $23,100 $52,500 $75,600
Ending Work in Process $9,900 $4,500 14,400
Total costs assigned $33,000 $57,000 $90,000
Explanation:
a) Data and Calculations:
Materials Conversion
Units started 10,000
Units completed 7,000 7,000 7,000
Ending WIP 3,000 3,000 600
Equivalent units 10,000 7,600
Production Cost Report:
Materials Conversion Total
Manufacturing costs $33,000 $57,000 $90,000
Cost per equivalent unit:
Manufacturing costs $33,000 $57,000
Equivalent units 10,000 7,600
Cost per equivalent unit $3.30 $7.50
Cost assigned to:
Units transferred out $23,100 $52,500 $75,600
($3.30 * 7,000) ($7.50 * 7,000)
Ending Work in Process $9,900 $4,500 14,400
($3.30 * 3,000) ($7.50 * 600)
Total costs assigned $33,000 $57,000 $90,000
The Fabricating Department started the current month with a beginning Work in Process inventory of $10,900. During the month, it was assigned the following costs: direct materials, $76,900; direct labor, $24,900; and factory overhead, 70% of direct labor cost. Also, inventory with a cost of $113,500 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is: Group of answer choices $83,461. $196,961. $68,030. $16,630. $112,700.
Answer:
Ending Work in Process $16,630
Explanation:
The computation of the ending balance of the work in process inventory is shown below:
Beginning Work in process $10,900
Add: Manufacturing Costs
Direct Materials $76,900
Direct Labor $24,900
Factory Overhead $17,430 (70% of $24,900)
Less: Cost of goods manufactured ($113,500)
Ending Work in Process $16,630
1. One of the most important assets of any organization is its data (information). This asset is used for two purposes: operational record keeping and analytical decision making. We capture data in the operational systems; and we analyze data in the data warehousing and business intelligence (DW/BI) systems. According to the Kimball Group, what are the four components of the DW/BI Architecture
Answer:
1. Operational source systems
2. ETL
3. Presentation area to Support BI
4. BI applications
Explanation:
1. Operational source systems:
These systems here capture the transactions of the business. The main objectives are to process performance as well as availability.
2. ETL systems:
these stands for extract, transformation and load systems.
the extract , has to do with getting the data to be in the warehouse environment. copying it into the Extraction, transformation and the load system in order for it to be be manipulated further.
transformation, this has to do with data cleansing, data combination from different sources and removing duplications from the data.
loading is the last step of ETL, and it has to do with loading data into the target models.
3. Presentation area to Support BI
BI stands for business intelligence. the DW-BI area is where organization, and storage of data is done by . The presentation area should have detailed data, and also atomic data. Data in this are should be presented and stored in schemas that are dimensional.
4. BI applications
the business application areas are the different abilities offered to the users on the presentation area for them to make analytical decisions.
You own a house that you rent for $1,275 per month. The maintenance expenses on the house average $235 per month. The house cost $226,000 when you purchased it 4 years ago. A recent appraisal on the house valued it at $248,000. If you sell the house you will incur $19,840 in real estate fees. The annual property taxes are $2,850. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?
Answer: $228,160
Explanation:
The value that should be placed on this house when analyzing the option of using it as a professional office will be the value of the net proceeds from selling the house and this will be:
= Value of house - Real estate fees
= $248000 - $19840
= $228,160
Therefore, the value that should be place on this house when analyzing the option of using it as a professional office is $228,160
describe how posts on social media can portray poor ethics to an employer. (answer in a complete sentence)
Answer:
Posts on social media can portray poor ethics to an employer, because if you post something that goes against what they work for or towards it can get in the way of what they believe!
Explanation:
Hope this helps! :)
Data on the level of support for corporate sustainability (measured on a quantitative scale ranging from 0 to 160 points) for each of 992 senior managers at CPA firms are saved in CORSUS.txt
a) Construct a histogram for the data and use it to evaluate the validity of the normality assumption.
b) Obtain the mean and standard deviation for the data and use these statistics to evaluate the validity of the normality assumption.
c) Obtain the interquartile rage for the data and use these statistics to evaluate the validity of the normality assumption
Answer:
A) attached below
B) mean value = 67.755, std = 26.871
C) IQR( interquartile range ) = 37
Explanation:
A) Construct a histogram for the data and use it to evaluate the validity of normality assumption
Using Minitab to construct the Histogram from the shape of the Histogram we can see that the Normality assumption is valid because the shape is fairly symmetric
screenshot of Histogram is attached below
B) Obtain the mean and standard deviation for the data and use these statistics to evaluate the validity of the normality assumption.
still using Minitab to determine the std and mean values
mean value = 67.755, std = 26.871
Next : find the percentage of the observation that lie within 1,2 and 3 std from the mean
For one(1) std from the mean the interval = ( 40.884, 94.626 )
percentage of observation = 665 / 992 = 67.04
For two(2) std from the mean; The interval = ( 14.013 , 121.497 )
percentage of observation = 946 / 992 = 95.36%
For three(3) std from the mean ; The interval = ( -12.858, 148.368 )
percentage of observations = 991 / 992 = 99.90%
The percentages from the above calculations indicates the validity of the normality assumption
C) Obtain the interquartile rage for the data and use these statistics to evaluate the validity of the normality assumption
using MINITAB
since the data are assumed Normal; Ratio = [tex]\frac{IQR}{S} = 1.3[/tex]
std (s) = 26.871, IQR( interquartile range ) = 37
Next check if IQR / S will be = 1.3
= 37 / 26.871 = 1.377 ( This validates the normality assumption )
The cash records of Downs Company show the following.
For July:
1. The June 30 bank reconciliation indicated that deposits in transit total $580. During July, the general ledger account Cash shows deposits of $16,900, but the bank statement indicates that only $15,600 in deposits were received during the month.
2. The June 30 bank reconciliation also reported outstanding checks of $940. During the month of July, Downs Company books show that $17,500 of checks were issued, yet the bank statement showed that $16,400 of checks cleared the bank in July.
For September:
3. In September, deposits per bank statement totaled $25,900, deposits per books were $26,400, and deposits in transit at September 30 were $2,200.
4. In September, cash disbursements per books were $23,500, checks clearing the bank were $24,000, and outstanding checks at September 30 were $2,100.
There were no bank debit or credit memoranda, and no errors were made by either the bank or Downs Company.
Answer the following questions.
(a) In situation 1, what were the deposits in transit at July 31?
The deposits in transit at July 31 $Image for Exercise 7-10 The cash records of Downs Company show the following. For July: 1. The June 30 bank reconcilia
(b) In situation 2, what were the outstanding checks at July 31?
The outstanding checks at July 31 $Image for Exercise 7-10 The cash records of Downs Company show the following. For July: 1. The June 30 bank reconcilia
(c) In situation 3, what were the deposits in transit at August 31?
The deposits in transit at August 31 $Image for Exercise 7-10 The cash records of Downs Company show the following. For July: 1. The June 30 bank reconcilia
(d) In situation 4, what were the outstanding checks at August 31?
The outstanding checks at August 31 $Image for Exercise 7-10 The cash records of Downs Company show the following. For July: 1. The June 30 bank reconcilia
Answer:
(a) The deposits in transit at July 31 = $1,880
(a) The deposits in transit at July 31 = $2,040
(c) The deposits in transit at August 31 = $1,700
(d) The deposits in transit at August 31 = $1,600
Explanation:
(a) In situation 1, what were the deposits in transit at July 31?
This can be calculated as follows:
The deposits in transit at July 31 = $580 + $16,900 - $15,600 = $1,880
(b) In situation 2, what were the outstanding checks at July 31?
This can be calculated as follows:
The outstanding checks at July 31 = $940 + $17,500 - $16,400 = $2,040
(c) In situation 3, what were the deposits in transit at August 31?
This can be calculated as follows:
The deposits in transit at August 31 = $25,900 + $2,200 - $26,400 = $1,700
(d) In situation 4, what were the outstanding checks at August 31?
This can be calculated as follows:
The deposits in transit at August 31 = $23,500 + $2,100 - $24,000 = $1,600
Item11 2 points Time Remaining 1 hour 57 minutes 8 seconds01:57:08 Item 11 Time Remaining 1 hour 57 minutes 8 seconds01:57:08 An advantage of bonds is: Multiple Choice Bonds do not affect owner control. Bonds require payment of par value at maturity. Bonds can decrease return on equity. Bond payments can be burdensome when income and cash flow are low. Bonds require payment of periodic interest.
Answer: Bonds do not affect owner control.
Explanation:
Bonds are simply refered to as the units of corporate debts which are being issued by companies. It is a fixed income instrument and its advantage is that the bonds do not affect owner control.
Bonds can also bring about a rise in the return on equity. Therefore, the correct option is A.
To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: • A bond’s is generally $1,000 and represents the amount borrowed from the bond’s first purchaser. • A bond issuer is said to be in if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants. • A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a . • A bond’s gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions. Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following information:esvoe37f387cf9b3627f11119053e024693f8affde5624e3d681c11860b391bb47ca1eovse What is the coupon interest rate of this bond
Answer: See explanation
Explanation:
A bond’s (face value) is generally $1,000 and represents the amount borrowed from the bond’s first purchaser.
A bond issuer is said to be in (default) if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants.
A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a (sinking fund provision).
A bond’s (call provision) gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions.
The face value is the dollar value of a security, or a stock's original cost. Default means when the bond issuer doesn't agree with the stated terms of the bond.
Miltmar Corporation will pay a year-end dividend of $4, and dividends thereafter are expected to grow at the constant rate of 4% per year. The risk-free rate is 4%, and the expected return on the market portfolio is 12%. The stock has a beta of 0.75. What is the intrinsic value of the stock
Answer:
$66.67
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
required return = 4% + 0.75 ( 12% - 4%) 10%
4/ 0.1 - 0.04 = $66.67
Splish Company uses a periodic inventory system. For April, when the company sold 650 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 310 $34 $ 10,540 April 15 purchase 420 41 17,220 April 23 purchase 270 44 11,880 1,000 $39,640 Compute the April 30 inventory and the April cost of goods sold using the FIFO method.
Answer and Explanation:
The computation of the ending inventory and cost of goods sold using FIFO method as follows:
Given that
Total goods available for sale = 1000
Units sold = 650
Based on the above information
The Ending inventory is
= 1000 - 650
= 350
Now 350 units comprise of 270 units of April 23 and the remaining 80 units would be of April 15
SO,
Ending inventory value is
= 270 × 44 + 80 × 41
= $15,160
ANd,
Cost of goods sold = Cost of goods available for sale - Ending inventory
= $39,640 - $15,160
= $24,480