Answer:
Max Revenue (not necessarily profit) occurs at Camera A price of $380
Max Revenue (not necessarily profit) occurs at Camera B price of $460
Explanation:
Assuming prices varying between $250 to $500 with $10 intervals, the total revenues of camera A are shown below:
Statement showing maximum reveue of Camera A
Price -A 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500
Price B
250 26875 26390 25785 25060 24215 23250 22165 20960 19635 18190 16625 14940 13135 11210 9165 7000 4715 2310 -215 -2860 -5625 -8510 -11515 -14640 -17885 -21250
260 27500 27040 26460 25760 24940 24000 22940 21760 20460 19040 17500 15840 14060 12160 10140 8000 5740 3360 860 -1760 -4500 -7360 -10340 -13440 -16660 -20000
270 28125 27690 27135 26460 25665 24750 23715 22560 21285 19890 18375 16740 14985 13110 11115 9000 6765 4410 1935 -660 -3375 -6210 -9165 -12240 -15435 -18750
280 28750 28340 27810 27160 26390 25500 24490 23360 22110 20740 19250 17640 15910 14060 12090 10000 7790 5460 3010 440 -2250 -5060 -7990 -11040 -14210 -17500
290 29375 28990 28485 27860 27115 26250 25265 24160 22935 21590 20125 18540 16835 15010 13065 11000 8815 6510 4085 1540 -1125 -3910 -6815 -9840 -12985 -16250
300 30000 29640 29160 28560 27840 27000 26040 24960 23760 22440 21000 19440 17760 15960 14040 12000 9840 7560 5160 2640 0 -2760 -5640 -8640 -11760 -15000
310 30625 30290 29835 29260 28565 27750 26815 25760 24585 23290 21875 20340 18685 16910 15015 13000 10865 8610 6235 3740 1125 -1610 -4465 -7440 -10535 -13750
320 31250 30940 30510 29960 29290 28500 27590 26560 25410 24140 22750 21240 19610 17860 15990 14000 11890 9660 7310 4840 2250 -460 -3290 -6240 -9310 -12500
330 31875 31590 31185 30660 30015 29250 28365 27360 26235 24990 23625 22140 20535 18810 16965 15000 12915 10710 8385 5940 3375 690 -2115 -5040 -8085 -11250
340 32500 32240 31860 31360 30740 30000 29140 28160 27060 25840 24500 23040 21460 19760 17940 16000 13940 11760 9460 7040 4500 1840 -940 -3840 -6860 -10000
350 33125 32890 32535 32060 31465 30750 29915 28960 27885 26690 25375 23940 22385 20710 18915 17000 14965 12810 10535 8140 5625 2990 235 -2640 -5635 -8750
360 33750 33540 33210 32760 32190 31500 30690 29760 28710 27540 26250 24840 23310 21660 19890 18000 15990 13860 11610 9240 6750 4140 1410 -1440 -4410 -7500
370 34375 34190 33885 33460 32915 32250 31465 30560 29535 28390 27125 25740 24235 22610 20865 19000 17015 14910 12685 10340 7875 5290 2585 -240 -3185 -6250
380 35000 34840 34560 34160 33640 33000 32240 31360 30360 29240 28000 26640 25160 23560 21840 20000 18040 15960 13760 11440 9000 6440 3760 960 -1960 -5000
390 35625 35490 35235 34860 34365 33750 33015 32160 31185 30090 28875 27540 26085 24510 22815 21000 19065 17010 14835 12540 10125 7590 4935 2160 -735 -3750
400 36250 36140 35910 35560 35090 34500 33790 32960 32010 30940 29750 28440 27010 25460 23790 22000 20090 18060 15910 13640 11250 8740 6110 3360 490 -2500
410 36875 36790 36585 36260 35815 35250 34565 33760 32835 31790 30625 29340 27935 26410 24765 23000 21115 19110 16985 14740 12375 9890 7285 4560 1715 -1250
420 37500 37440 37260 36960 36540 36000 35340 34560 33660 32640 31500 30240 28860 27360 25740 24000 22140 20160 18060 15840 13500 11040 8460 5760 2940 0
430 38125 38090 37935 37660 37265 36750 36115 35360 34485 33490 32375 31140 29785 28310 26715 25000 23165 21210 19135 16940 14625 12190 9635 6960 4165 1250
440 38750 38740 38610 38360 37990 37500 36890 36160 35310 34340 33250 32040 30710 29260 27690 26000 24190 22260 20210 18040 15750 13340 10810 8160 5390 2500
450 39375 39390 39285 39060 38715 38250 37665 36960 36135 35190 34125 32940 31635 30210 28665 27000 25215 23310 21285 19140 16875 14490 11985 9360 6615 3750
460 40000 40040 39960 39760 39440 39000 38440 37760 36960 36040 35000 33840 32560 31160 29640 28000 26240 24360 22360 20240 18000 15640 13160 10560 7840 5000
470 40625 40690 40635 40460 40165 39750 39215 38560 37785 36890 35875 34740 33485 32110 30615 29000 27265 25410 23435 21340 19125 16790 14335 11760 9065 6250
480 41250 41340 41310 41160 40890 40500 39990 39360 38610 37740 36750 35640 34410 33060 31590 30000 28290 26460 24510 22440 20250 17940 15510 12960 10290 7500
490 41875 41990 41985 41860 41615 41250 40765 40160 39435 38590 37625 36540 35335 34010 32565 31000 29315 27510 25585 23540 21375 19090 16685 14160 11515 8750
500 42500 42640 42660 42560 42340 42000 41540 40960 40260 39440 38500 37440 36260 34960 33540 32000 30340 28560 26660 24640 22500 20240 17860 15360 12740 10000
Max Revenue (not necessarily profit) occurs at Camera A price of $380
Max Revenue (not necessarily profit) occurs at Camera B price of $460
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
Tung is nearly fifty years of age and has not had a job for the past twenty-five years. He holds a bachelor's degree in engineering and is in good health. When he casually discusses his lack of employment with friends, he tells them "there are no jobs out there," "no one wants to pay me what I'm worth," or "I was offered a job but it's too far to travel."
1. Based on this scenario, which statement best explains Tung's lack of a job?
Answer:
1- Tung is a exemple of the ideology of personal responsability.
Explanation:
The ideology of personal responsibility corresponds to a set of personal ideologies about the facts that happen in your life.
The individual believes that everything that happens is because of his actions and therefore occurs because of his own cause and choice. Therefore, they believe that because they choose their actions, they should be held responsible for them both legally and morally.
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
Atkinson Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 2016, Atkinson budgets 2017 assembly-support costs to be $8,800,000 and 2017 direct labor-hours to be 220,000.
At the end of 2017, Atkinson is comparing the costs of several jobs that were started and completed in 2017.
Laguna Model Mission Mode
Construction period Feb-June 2017 May-0ct 2017
Direct material costs $106,550 $127,450
Direct labor costs $36,250 $41,130
Direct labor-hours 970 1,000
Direct materials and direct labor are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labor-hours are worked. The 2017 actual assembly-support costs were $8,400,000, and the actual direct labor-hours were 200,000.
Required:
1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ?
2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b) actual costing?
3. Why might Atkinson Construction prefer normal costing over actual costing?
Answer:
Explanation:
Normal costing Actual costing
Assembly support cost $8,800,000 $8,400,000
Direct labor hours 220,000 200,000
Indirect Cost Rate $40 per DLH $42 per DLH
2.
Normal Costing Laguna Model Mission Model
Construction period Feb-June 2017 May-0ct 2017
Direct material costs $106,550 $127,450
Direct labor costs $ 36,250 $41,130
Direct labor-hours 970 1,000
Assmebly support cost $38,800
($40 x 970) $40,000
Total job cost $181,600 $208,580
Actual Costing Laguna Model Mission Model
Construction period Feb-June 2017 May-0ct 2017
Direct material costs $106,550 $127,450
Direct labor costs $ 36,250 $41,130
Direct labor-hours 970 1,000
Assmebly support cost $40,740
($42 x 970) $42,000
Total job cost $183,540 $210,580
Companies now do prefer normal costing than the actual costing, reasons are that the overhead rates are been known from the beginning of the year which is important for giving price estimates and checking the profitability of jobs.
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
On February 1, 2020, Bonita Industries purchased a parcel of land as a factory site for $328000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below: Demolition of old building $ 19800 Architect's fees 36400 Legal fees for title investigation and purchase contract 4600 Construction costs 1378000 (Salvaged materials resulting from demolition were sold for $10200.) Bonita should record the cost of the land and new building, respectively, as:____________
a. $342200 and $1414400.
b. $352400 and $1404200.
c. $337600 and $1419000.
d. $337600 and $1414400.
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.
Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $16,300 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,445 million, and net operating working capital (NOWC) is expected to increase by $50 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year? $13,805 million $331,476 million $18,695 million $13,905 million
Answer:
$13,805 million
Explanation:
The calculation of free cash flow is computed by applying the following formula
Free cash flow = EBIT(1 - t) - Net Capital Expenditure - Net operating working capital
where,
EBIT(1 - t) is $16,300 million
Net capital expenditure is $2,445 million
And, the net operating working capital is $50 million
Now putting the items values to the formula
So, the free cash flow is
= $16,300 million - $2,445 million - $50 million
= $13,805 million
Basically we applied the above formula to find out the free cash flow
Use information from the Washington Post article Why We've Been Hugely Underestimating the Overfishing of the Oceans to determine whether each statement is true or false.
According to the Food and Agriculture Organization of the United Nations FAO), worldwide catches peaked in 2001 at 86 million tons
1. True
2. False
Using catch reconstruction, researchers estimate that the actual peak catch was 50% larger than the reported peak catch.
1. True
2. False
Catch reconstruction shows that, since the peak, catches have been increasing, not decreasing as previously reported
1. True
2. False
The Sea Around Us Project found several problems with the FAO data, such as the fact that data that were not available were reported as catches of zero fish.1. True
2. False
Answer:
1. False. The peak of 86 MILLION occurred in the year of 1996 and not in 2001 as per the reports of food and agricultural organisation of UN.
2. True. The given statement is correct from the source.
3. False. As per the research conducted on the basis of catch reconstruction, the catches have been declining due top several reasons.
4. The last statement is totally correct as verified by the source mentioned.
On January 1, Year 1, Weller Company issued bonds with a $360,000 face value, a stated rate of interest of 10.50%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 8.50%. Interest is paid annually on December 31. Assuming Weller issued the bond for $390,440, what is the amount of interest expense that will be recognized during Year 3? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Answer:
$ 32,370
Explanation:
First and foremost,find attached amortization schedule showing the opening balance of the bonds in each year,the interest expense which is the opening balance multiplied by market interest rate of 8.5% as well as the interest coupon which is face value of $360,000 multiplied by stated interest of 10.50% i.e $360,000*10.5%=$37,800
The interest expense in year 3 = opening balance in year 3*8.5%=$380,823*8.5% =$32,370
The amount of interest expense that will be recognized during Year 3 is $32,370.
For year 1
Cash paid = $360,000*10.5%
Cash paid = $37,800
Interest expense = $390,440*8.5%
Interest expense = $33,187
Premium amortization = $37,800 - $33,187
Premium amortization = $4,613
For year 2
Cash paid = $37,800
Interest expense = $385,827*8.5%
Interest expense = $32,795
Premium amortization = $37,800 - $37,800
Premium amortization = $5,005
For year 3
Cash paid = $37,800
Interest expense = $380,822 * 8.5%
Interest expense = $32,370
Therefore, The amount of interest expense that will be recognized during Year 3 is $32,370.
See similar solution here
brainly.com/question/16257629
BENETEAU CORPORATION
Comparative Balance Sheet
2017 2016
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 2017 is $12,000. Net sales for 2017 are $250,000.
2. Cash dividends of $15,000 were declared and paid in 2017.
3. Land was sold for cash at a loss of $2,000. This was the only land transaction during the year.
4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
5. $12,000 of bonds were retired during the year at carrying (book) value.
6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000
Required:
1. Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.
Answer:
A cash flow statement for the year ended December 31, 2017,using indirect method was prepared for BENETEAU CORPORATION.
Explanation:
Solution
Prepare the cash flow statement using indirect method as follows:
Statement of cash flows for the year ended December 31, 2017, using the indirect method.
B Corporation
Statement of Cash Flows For the Year Ended December 31, 2017
Cash flows from operating activities:
Net loss=-12000
Adjustments to reconcile net loss with cash flows from operating activities:
Depreciation ($20,000 + $10,000 - $13,000) = 17000
Loss on sale of land = 2000
Increase in accounts receivable= -20000
Increase in prepaid expenses=-5000
Increase in accounts payable=6000
Net cash used in operating activities=-12000
Cash flows from investing activities:
Sale of land ($40,000 - $18,000 - $2,000) =20000
Sale of equipment =5000
Net cash generated by investing activities =25000
Cash flows from financing activities:
Retirement of bonds=-12000
Proceeds from issuance of bonds=20000
Dividends paid=-15000
Net cash used by financing activities=-7000
Net increase in cash=6000
Add: Beginning cash balance=31000
Ending cash balance=37000
Now:
(1) The Calculation of Depreciation:
The accumulated Depreciation at end of 2017 = $ (20,000)
Thus,
Accumulated Depreciation at end of 2017 = $ (13,000)
Increase in Accumulated Depreciation during 2017 = 20,000 - 13,000 = $ 7,000
Add: Accumulated depreciation on equipment sold during 2017 = $ 10,000
Total Depreciation expense for 2017 = $ 7,000 + 10,000 = $ 17,000
(2) Calculation of Proceeds from the sale of land:
The land cost sold = $ 40,000 - 18,000 = $ 22,000
The sale of the loss of land = $ 2,000
Hence,
Proceeds from sale of land = Cost of land sold - Loss on sale of land = $ 22,000 - 2,000 = $ 20,000
(3) Calculation of Issuance of bonds payable during 2017
The Bonds Payable at the end of 2016 = $ 19,000
So,
Bonds Payable at the end of 2017 = $ 27,000
Retirement of bonds during 2017 = $ 12,000
Bonds issued during 2017 = $ 27,000 + 12,000 - 19,000 = $ 20,000
Now,
(a) Calculation of Current cash debt Coverage times:
Current cash debt Coverage times = Net cash provided by operating activities / Average current liabilities
Provision of net cash operating activities = ($12,000)
The current average liabilities = (Opening current liabilities + Closing current liabilities) / 2
= (12,000 + 6,000) / 2 = $ 9,000
Current cash debt Coverage times = ($12,000) / $ 9,000 = -1.33 times
(b) Calculation of Cash debt coverage times:
Cash debt coverage times = Net cash provided by operating activities / Average total liabilities
Thus,
Net cash provided by operating activities = ($12,000)
Average Total liabilities = (Opening Total liabilities + Closing Total liabilities) / 2
= ($ 25,000 + 39,000) / 2 = $ 32,000
Therefore, the cash debt coverage times = ($12,000) / $32,000 = -0.375 = -0.38 times
ABC Corporation has declared a rights offering to stockholders of record on Friday, December 10th. Under the offer, shareholders need 10 rights to subscribe to 1 new share at a price of $19. Fractional shares can be rounded up to purchase 1 full share. As of the ex date, the stock is trading at $29. The value of the right is:
Answer:
The value of a right is $1
Explanation:
10 rights are needed to buy 1 share at the price of $19
Value of total rights = $29 - $19 =$10
Value of a right = [tex]\frac{10}{10}[/tex] = $1
Inventory records for Marvin Company revealed the following:
Date Transaction Number of Units Unit Cost
Mar. 1 Beginning inventory 900 $7.14
Mar. 10 Purchase 560 7.57
Mar. 16 Purchase 790 8.02
Mar. 23 Purchase 510 8.42
Marvin sold 1,900 units of inventory during the month. Cost of goods sold assuming FIFO would be:__________.
(Do not round your intermediate calculations. Round your answer to the nearest dollar amount)
A. $15,998.
B. $14,194.
C. $14,844.
D. $15,155.
Answer:
B. $14,194.
Explanation:
FIFO means first in, first out. It means that the goods purchased first are the first to be sold.
The 1900 units or inventories sold would be taken from :
1. The beginning inventory = 900 x $7.14 = $6,426
2. Mar. 10 Purchase = 560 x $7.57 = $4,239.20
3. The remaining 440 units of inventory sold would be taken from the Mar. 16 Purchase = 440 x $8.02 = $3,528.80
Total = $14,194
I hope you
Fred was suffering from a nasal tissue blockage that could be corrected either through an operation or with medical treatment for about two months. Fred's doctor clearly told him that the condition was not acute and he did not need surgery. Fred, however, insisted on the surgical removal of the blockage, being aware that his medical insurance would cover the entire cost of this surgery. The situation described here can be associated with which of the following problems? A) Price dispersionB) Moral hazardC) Lemons problemD) Prisoner's dilemma
Answer:
The correct answer to the following question will be Option B (Moral hazard).
Explanation:
Moral hazard happens whenever one individual takes further chances as the responsibility of such consequences rests with somebody else.
Fred suffered from some kind of blockage of the nasal tissues that could have been resolved for around 2 months either by a procedure and via medical attention. Fred's doc warned him plainly the problem wasn't serious so he doesn't need an operation.However, Fred concentrated on either the blockage becoming surgically removed, becoming mindful that his private policy would fund the full cost of this operation.The other given options are not related to the given scenario. So that the condition outlined here could be related to the "Moral hazard" issue.
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.
Presented below is the information for Irvine Corp.: Irvine Corp.. has prepared the following comparative balance sheets for 2020 and 2021: 2021 2020 Prepaid expenses 1,800 2,700 Cash 28,200 15,300 Accounts receivable 13,900 17,000 Inventory 36,500 26,000 Patent 15,300 17,400 Plant assets 129,500 105,000 Accumulated depreciation -45,000 -37,500 180,200 145,900 Accounts payable 15,300 16,800 Accrued liabilities 6,000 4,200 Mortgage payable 0 58,300 Additional Paid In Capital 12,000 0 Preferred stock 74,000 Common Stock 60,000 60,000 Retained earnings 12,900 6,600 180,200 145,900 The income statement for 2021 is as follows: Sales revenue $198,000 Cost of sales 108,900 Gross profit 89,100 Operating expenses 69,000 Net income $20,100 Other Facts: Included in operating expenses: Depreciation Expense 7500 Vehicle expense 2800 Interest Expense 15600 Gain on Sale of Asset 5000 Pension Contribution 7500 Other: Dividends 13800 Cash Rec'd From Sale of Assets 35000 Basis of Assets Sold 30000 PREPARE A PERFECT CASH FLOW STATEMENT
Answer:
Hey hey hey hey hey
Explanation:
What can be a cost of opening a basic checking account?
high interest rates
penalties for early withdrawal
check writing limits
high fees
Answer: High Fees
Explanation:
Checking accounts are very useful to the common person because of the liquidity they offer. With a Checking account, you are able to make withdrawals whenever you want by way of checks or ATM cards as many times as you want. Electronic transfers are available and depositing is quite simple.
In exchange for this high Liquidity though, the account receives low interest and can be subject to quite a number of fees.
Depending on the bank there are different fees attached with some of the most common being, Card processing fees, electronic and mobile banking fees, Overdraft fees, Maintenance fees and sometimes even a fee for letting the account drop below a minimum value.
The CORRECT ANSWER is "check writing limits" I just took the test:) Hope this helps
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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IZ Corporation purchased land for $400,000. Later in the year, the company sold a different piece of land with a book value of $200,000 for $240,000. How are the effects of these transactions reported on the statement of cash flows assuming the indirect method is used? Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank.
Answer and Explanation:
1. Gain on sale of land
It is come from
= Sale value - book value
= $240,000 - $200,000
= $40,000
Since there is a gain of $40,000 which is to be deducted from a net income under the cash flow from operations
2. Cash received from sale of land
The cash is received from sale of land reflects that the cash is come i.e inflow of cash and the same is to be reflected under the cash flow from investing activities in a positive amount i.e $240,000
3. Cash paid for purchase of land
The cash is paid for purchase of land reflects that the cash is gone i.e outflow of cash and the same is to be reflected under the cash flow from investing activities in a negative amount i.e -$400,000
Answer:
Gain on Sale of Land: (Deducted from net income) $ - 40,000
Cash Received from Sale of Land: (Part of cash flows from investing activities) $ 240,000
Cash Paid for Purchase of Land: (Part of cash flows from investing activities) $ - 400,0000
Explanation:
Sheridan Co. incurred research and development costs in 2021 as follows: Materials used in research and development projects $ 915000 Equipment acquired that will have alternate future uses in future research and development projects 2650000 Depreciation for 2021 on above equipment 441666 Personnel costs of persons involved in research and development projects 715000 Consulting fees paid to outsiders for research and development projects 265000 Indirect costs reasonably allocable to research and development projects 190000 $5176666 The amount of research and development costs charged to Sheridan's 2021 income statement should be a. $2071666. b. $1895000. c. $2526666. d. $4545000.
Answer: c. $2,526,666.
Explanation:
When calculating amount of research and development costs charged to Sheridan for 2021, the concern should be for period costs i.e, costs that are incurred for 2021 alone. Therefore the Equipment cost cannot be put here because as an Asset it was purchased for future use and so cannot be just for 2021.
The costs therefore are all of the above EXCEPT cost.
= Materials + Depreciation + Personnel Costs + Consulting fees + Indirect Costs
= 915,000 + 441,666 + 715,000 + 265,000 + 190,000
= $2,526,666
Correct answer is Option C
One of the employees of Davenport Corporation recently was involved in an accident with one of the corporation's delivery vans. The corporation is either going to repair the damaged van or sell it as is and buy a comparable used van. Information related to this decision is provided below:
Initial cost of the damaged van $ 30,000
Accumulated depreciation to date on van $ 18,000
Salvage value of van immediately before crash $ 9,000
Salvage value of van immediately after crash $ 1,000
Cost to repair damaged van $ 5,000
Cost of a comparable used van $ 10,000
Based on the information above, Davenport would be financially better off:
Answer:
Therefore, Davenport would be financially better off by repairing the damaged van for $4,000.
Explanation:
According to the given data in order to calculate how Davenport would be financially better off we would have to calculate the Benefit from repairing damaged van with the following formula:
Benefit from repairing damaged van=Cost of comparable used Van- Repair cost-salvage value before repair after crash
Benefit from repairing damaged van=$10,000 -$5,000 -$1,000
Benefit from repairing damaged van= $ 4,000
Therefore, Davenport would be financially better off by repairing the damaged van for $4,000.
Crane Company had the following assets on January 1, 2022.
Item Cost Purchase Date Useful Life (in years) Salvage Value
Machinery $59,000 Jan. 1, 2012 10 $0
Forklift 18,000 Jan. 1, 2019 5 0
Truck 24,400 Jan. 1, 2017 8 3,000
During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $10,800. The truck was discarded on December 31.
Required:
Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021.
Date Account and explanation Debit Credit
Jan 1,2022 Accumulated Depreciation $59,000
Machinery $59,000
(To machinery retired on Jan 1)
June 30,2022 Depreciation expenses($3,600*6/12) $1,800
Accumulated Depreciation($3,600*6/12) $1,800
(To depreciation charged for 6 months)
June 30,2022 Cash $10,800
Accumulated Depreciation $12,600
Gain on isposal of Forklift $5,400
Forklift $18,000
(To Forklift disposed with profit)
Dec 31,2022 Depreciation expenses $2,675
Accumulated Depreciation $2,675
(To depreciation charged for year)
Dec 31,2022 Accumulated Depreciation $16,050
Loss on retiremnt $8,350
Truck $24,400
Answer:
Machinery
J1
Accumulated Depreciation -Machinery $59,000 (debit)
Cost $59,000 (credit)
Accumulated Depreciation = ($59,000 / 10) × 10 = 59,000
forklift
J1
Depreciation - forklift $1,800 (credit)
Accumulated Depreciation - forklift $1,800 (credit)
Depreciation Calculation = (18,000/5)×1/2 = $1,800
J2
Cash $10,800 (debit)
Accumulated Depreciation - forklift $12,600 (debit)
Profit and Loss $5,400 (credit)
Cost $18,000 (credit)
Accumulated Depreciation = (18,000/5)×3+1,800 = 12,600
Truck
J1
Depreciation - Truck $2,675 (credit)
Accumulated Depreciation - Truck $2,675 (credit)
Depreciation Calculation = (24,400 - 3,000 / 8) = $2,675
J2
Accumulated Depreciation -Truck $16,050 (debit)
Profit and Loss $8,350 (debit)
Cost $24,400 (credit)
Accumulated Depreciation = (24,400 - 3,000 / 8) × 6 = 16,050
Explanation:
Machinery
Accumulated Depreciation = ($59,000 / 10) × 10 = 59,000
forklift
Depreciation Calculation = (18,000/5)×1/2 = $1,800
Accumulated Depreciation = (18,000/5)×3+1,800 = 12,600
Truck
Depreciation Calculation = (24,400 - 3,000 / 8) = $2,675
Accumulated Depreciation = (24,400 - 3,000 / 8) × 6 = 16,050
Trapp Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,000. During the period, 10,000 units were started in production and ending work inventory consisted of 4,000 units that 90% complete with respect to material and 85% complete with respect to conversion costs. were If the costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs. The cost of units transferred out during the month was:
Answer:
Total cost of units transferred out= $45,000
Explanation:
The cost of units transferred out would be determined as follows:
Material = cost per unit × Number of equivalent units of units transferred out
Units transferred out = opening inventory + units introduced - closing inventory
= 3,000 + 10,000 - 4,000 = 9,000 units
Material cost = $2×9,000 = $18,000
Conversion cost = $3× 9,0000 = $27,000
Total cost of units transferred out = $18,000 +$27,000= $45,000
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
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
Deluxe Building Services offers custodial services on both a contract basis and an hourly basis. On January 1, 2015, Deluxe collected $30,150 in advance on a six-month contract for work to be performed evenly during the next six months. Assume that Deluxe closes its books and issues financial reports on a monthly basis.
a. Prepare the entry on January 1 to record the receipt of $30,150 cash for contract work (1) using the financial statements effect template and (2) in journal entry form.
b. Prepare the adjusting entry to be made on January 31, 2015, for the contract work done during January (1) using the financial statements effect template and (2) in journal entry form.
c. At January 31, a total of 30 hours of hourly rate custodial work was unbilled. The billing rate is $19 per hour. Prepare the adjusting entry needed on January 31, 2015, (1) using the financial statements effect template and (2) in journal entry form. (The firm uses the account Fees Receivable to reflect amounts due but not yet billed).
Answer:
Since there is not enough room here, I prepared the financial statement effects template on an excel spreadsheet that I attached.
a)
January 1, unearned revenue
Dr Cash 30,150
Cr Unearned service revenue 30,150
b)
January 31, accrued services
Dr Unearned service revenue 5,025
Cr Service revenue 5,025
c)
January 31, service revenue from hourly custodial work
Dr Accounts receivable 570
Cr Service revenue 570
Department A had 4,200 units in Work in Process that was 67% completed as to labor and overhead at the beginning of the period. 33,300 units of direct materials were added during the period, 35,200 units were completed during the period, and 2,300 units were 39% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories.
The number of equivalent units of production for conversion costs for the period was ___?
Answer:
35,395
Explanation:
CALCULATE NO OF EQUIVALENT UNIT OF PRODUCTION FOR CONVERSION COST UNDER FIFO METHOD :
WHOLE UNIT % EQUIVALENT UNIT
BEGINNING WIP 4,200 39% 1,638
UNIT STARTED & COMPLETED
(35,200-4200) 31,000 106% 32,860
ENDING WIP 2,300 39% 897
TOTAL 35,395
Therefore The number of equivalent units of production for conversion costs for the period was 35,395
The following information is budgeted for McCracken Plumbing Supply Corporation for next quarter:
April May June
Sales $110,000 $130,000 $180,000
Merchandise purchases $85,000 $92,000 $105,000
Selling and administrative expenses $50,000 $50,000 $50,000
All sales at McCracken are on credit. Forty percent are collected in the month of sale, 58% in the month following the sale, and the remaining 2% are uncollectible. Merchandise purchases are paid in full the month following the month of purchase. The selling and administrative expenses above include $8,000 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid as incurred. McCracken wants to maintain a cash balance of $15,000. Any amount below this can be borrowed from a local bank as needed in increments of $1,000. All borrowings are made at month end.
Required:
Prepare McCracken's cash budget for May. McCracken expects to have $24,000 of cash on hand at the beginning of May.
Answer:
McCracken's Cash Budget for May:
Beginning Cash balance
Cash Sales: 40% month of sale = $52,000
58% following month of sale = $63,800 $115,800
Cash Purchases: month following purchase = ($85,000)
Selling & Administrative Expenses = ($42,000)
Bank Notes = $27,000
Cash Balance = $15,800
Explanation:
a) Cash Budget is an estimate of the cash receipts and cash payments during a period of time.
b) Depreciation of $8,000 is not a cash payment, so this amount is deducted from the Selling and Administrative Expenses.
c) The bank notes are in multiples of $1,000. To maintain a cash balance of at least $15,000 for each month, McCracken needed to borrow $1,000 bank loan in 27 notes.
An on-demand printing company has monthly overhead costs of $1,900 in rent, $450 in electricity, $80 for phone service, and $230 for advertising and marketing. The printing cost is $40 per thousand pages for paper and ink. The average cost for printing x thousand pages can be represented by the function C(x) = (2,660+40x) / x. For a given month, if the printing company could print an unlimited number of pages, what value would the average cost per thousand pages approach? What does this mean in the context of the problem? Select one: a. The average cost would approach $0 per thousand pages. The more pages the company prints, the lower the average cost. b. The average cost would approach infinity. The more pages the company prints, the higher the average cost. c. The average cost would approach $40 per thousand pages or equivalently $0.04 per page. This is the cost per page in the absence of fixed costs. d. The average cost would approach $2.660 per thousand pages. This is the total of the fixed monthly costs.
Answer:
Explanation:
Base on the question been given to us, the solution to the given problem is in the file attached below
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.