You plan to purchase a house for $180,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 10 percent of the purchase price. You will not pay off the mortgage early. Assume the homeowner will remain in the house for the full term and ignore taxes in your analysis. a. Your bank offers you the following two options for payment. Which option should you choose? b. Your bank offers you the following two options for payments. Which option should you choose?

Answers

Answer 1

Answer:

choose the first one

Explanation:

get the debt over faster


Related Questions

BBB Leasing purchased a machine for $390,000 and leased it to Jack Tupp Auto Repair on January 1, 2021. Lease description: Quarterly rental payments $24,408 at beginning of each period Lease term 5 years (20 quarters) No residual value; no BPO Economic life of machine 5 years Implicit interest rate 10% Fair value of asset $390,000 What is the balance in the lease payable account after the April 1, 2021, lease payment

Answers

Answer:

$350,324

Explanation:

total lease liability = $390,000

since the first payment is made on January 1, the carrying of lease liability = $390,000 - $24,408 = $365,592

the interest expense for the 3 months = $365,592 x 10% x 3/12 = $9,139.80 ≈ $9,140

carrying value of lease liability after second payment = $365,592 - ($24,408 - $9,140) = $365,592 - 15,268 = $350,324

Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of 5 years, will cost $100 million, and will produce net cash flows of $28 million per year. Plane B has a life of 10 years, will cost $132 million, and will produce net cash flows of $27 million per year. Shao plans to serve the route for only 10 years. Inflation in operating costs, airplane costs, and fares are expected to be zero, and the company's cost of capital is 9%. By how much would the value of the company increase if it accepted the better project (plane)

Answers

Answer:

41.28 million

Explanation:

the net present value of the two alternatives needs to be determined. The appropriate alternative would be the plane with the higher NPV

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Alternative 1

Cash flow in year 0 = $-100 million

Cash flow each year from year 1 to 5 =  $28 million

I = 9%

NPV = $8.91 million

Alternative 2

Cash flow in year 0 = $-132 million

Cash flow each year from year 1 to 10 =  $27 million

I = 9%

NPV = $41.28 million

The second alternative has the higher NPV and it would increase the value of the company by $41.28 million if accepted

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

define risk economics. ​

Answers

Answer:

it kike some part of your business is at risk

jus gave it a try

High-Low Method, Cost Formulas
The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two different levels, are presented as follows:
Resource Number of Moves Total Cost
Forklift depreciation:
Low 5,000 $2,200
High 16,000 2,200
Indirect labor:
Low 5,000 $66,000
High 16,000 105,600
Fuel and oil for forklift:
Low 5,000 $3,550
High 16,000 11,360
Required:
If required, round your answers to two decimal places. Enter a "0" if required.
Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components.
Forklift depreciation:
V $
F $
Y $
Indirect labor:
V $
F $
Y $ + $X
Fuel and oil for forklift:
V $
F $
Y $X

Answers

Answer:

Results are below.

Explanation:

To calculate the variable and fixed costs, we need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= LAC - (Variable cost per unit* LAU)

Depreciation:

Depreciation is a 100% fixed cost. It does not vary with production levels.

Indirect labor:

Variable cost per unit= (105,600 - 66,000) / (16,000 - 5,000)

Variable cost per unit= $3.6

Fixed cost= 105,600 - (3.6*16,000)

Fixed cost= $48,000

Fixed cost= 66,000 - 3.6*5,000

Fixed cost= $48,000

Total cost= 48,000 + 3.6x

Fuel and oil for forklift:

Variable cost per unit= (11,360 - 3,550) / (16,000 - 5,000)

Variable cost per unit= $0.71

Fixed cost= 11,360 - (0.71*16,000)

Fixed cost= 0

Fixed cost= 3,550 - 0.71*5,000

Fixed cost= $0

Total cost= 0.71x

In which one of the following instances is the rivalry among competing sellers generally
weaker?
When the industry's product is costly to hold in inventory, perishable, or seasonal
o When one or more rivals are dissatisfied with their business performance and are making
aggressive moves to attract more customers
When there are so many rivals that any one company's actions have little direct impact on
the businesses of rivals
when rivals have dissimilar costs and dissimilar industry outlooks
When competing sellers are active in making fresh moves to improve their market standing
and business performance
Copying, redistributing, or website posting is expressly prohibited and constituto copyright violation
Version 1070576 * Copyright 2021 by lo-Bus Software, ine
Next
End Quta
< Previous

Answers

Answer:

I'd say when there are so many rivals that one company's action have little direct impact on the businesses of rivals

What was A contract between the government and a private producer.

Answers

Answer:

government contract

Explanation:

On April 1, Griffith Publishing Company received $2,628 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by Griffith Publishing Company for the first year of the subscription assuming the company uses a calendar-year reporting period

Answers

Answer:

Year 1 $657

Year 2 $876

Year 3 $876

Year 4 $219

Explanation:

Calculation to determine the amount of revenue that should be recorded by Griffith Publishing Company for the first year of the subscription assuming the company uses a calendar reporting period

First step is to calculate the amount of revenue per month

Revenue per month=$657. ($2,628/36)=

Revenue per month= $73 per month

Now let calculate amount of revenue that should be recorded by Griffith Publishing Company for the first year of the subscription

Year 1= $73 * 9

Year 1 = $657

Year 2 =$73 * 12

Year 2= $876

Year 3= $73 * 12

Year 3= $876

Year 4= $73 * 3

Year 4 = $219

Therefore amount of revenue that should be recorded by Griffith Publishing Company for the first year of the subscription are:

Year 1 $657

Year 2 $876

Year 3 $876

Year 4 $219

Waterway Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. WATERWAY RESORT TRIAL BALANCE AUGUST 31, 2020 Debit Credit Cash $25,300 Prepaid Insurance 10,200 Supplies 8,300 Land 28,000 Buildings 128,000 Equipment 24,000 Accounts Payable $10,200 Unearned Rent Revenue 10,300 Mortgage Payable 68,000 Common Stock 104,700 Retained Earnings 9,000 Dividends 5,000 Rent Revenue 84,200 Salaries and Wages Expense 44,800 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 $286,400 $286,400 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020. 2. An inventory count on August 31 shows $445 of supplies on hand. 3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $4,172 was earned prior to August 31. 5. Salaries of $365 were unpaid at August 31. 6. Rentals of $843 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year.

Answers

Question Completion:

Journalize the adjusting entries for the three months of 2020.

Answer:

Waterway Resort

Adjusting Journal Entries:

No. Date     Account Titles and Explanation     Debit       Credit

1.    Aug. 31 Insurance Expense                       $2,550

                  Prepaid Insurance                                            $2,550

To record insurance expense for the three months' period.

2.   Aug. 31 Supplies Expense                         $7,855

                  Supplies                                                           $7,855

To record supplies expense for the three months' period.

3.   Aug. 31 Depreciation Expense - Building $1,280

                  Accumulated Depreciation - Building           $1,280

To record depreciation expense for the three months' period.

3.   Aug. 31 Depreciation Expense-Equipment $540

                  Accumulated Depreciation - Equipment        $540

To record depreciation expense for the three months' period.

4.  Aug. 31 Unearned Rent Revenue              $4,172

                 Rent Revenue                                                $4,172

To record rent revenue earned.

5.  Aug. 31 Salaries Expense                            $365

                 Salaries Payable                                             $365

To record accrued salaries expense.

6.  Aug. 31 Accounts Receivable                     $843

                 Rent Revenue                                                $843

To record accounts receivable due.

7.  Aug. 31 Interest Expense                        $1,360

                 Interest Payable                                         $1,360

To record mortgage interest expense.

Explanation:

a) Data and Calculations:

WATERWAY RESORT TRIAL BALANCE AUGUST 31, 2020

                                                              Debit         Credit

Cash                                                   $25,300

Prepaid Insurance                                10,200

Supplies                                                 8,300

Land                                                    28,000

Buildings                                            128,000

Equipment                                          24,000

Accounts Payable                                                  $10,200

Unearned Rent Revenue                                        10,300

Mortgage Payable                                                  68,000

Common Stock                                                     104,700

Retained Earnings                                                   9,000

Dividends                                            5,000

Rent Revenue                                                       84,200

Salaries and Wages Expense          44,800

Utilities Expenses                              9,200

Maintenance and Repairs Expense 3,600

Totals                                          $286,400    $286,400

b) Adjusting transactions:

1. Insurance Expense $2,550 Prepaid Insurance $2,550 ($10,200 * 3/12)

2. Supplies Expense $7,855 Supplies $7,855 ($8,300 - $445)

3. Depreciation Expense - Building $1,280 Accumulated Depreciation - Building $1,280 ($128,000 * 4% * 3/12)

3. Depreciation Expense - Equipment $540 Accumulated Depreciation - Equipment $540 ($24,000 -$2,400 * 10% * 3/12)

4. Unearned Rent Revenue $4,172 Rent Revenue $4,172

5. Salaries Expense $365 Salaries Payable $365

6. Accounts Receivable $843 Rent Revenue $843

7. Interest Expense $1,360 Interest Payable $1,360 ($68,000 * 8% * 3/12)

Why does the quantity a supplier is willing to give go up when the price goes up

Answers

Because of supply and demand. More demand for a product makes the price go and and the supplier gives more because they get more
Supply and demand it’s simple

Artisan Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 8000 units during the year. The company has provided the following information:
Sales Revenue $593,000
Purchases (excluding Freight In) 304,000
Selling and Administrative Expenses 68,000
Freight In 14,000
Beginning Merchandise
Inventory 46,000
Ending Merchandise Inventory 42,000
What is the operating income for the year? (Round your answer to the nearest whole dollar.)
A) $203,000
B) $271,000
C) $322,000
D) $525,000

Answers

Answer:

Net operating income= $203,000

Explanation:

First, we need to calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 46,000 + (304,000 + 14,000) - 42,000

COGS= $322,000

Now, we can determine the net operating income using the following formula:

Net operating income= sales - cogs - Selling and Administrative Expenses

Net operating income= 593,000 - 322,000 - 68,000

Net operating income= $203,000

define securitization.​

Answers

Answer:

The conversion of an asset, especially a loan, into marketable securities, typically for the purpose of raising cash by selling them to other investors.

Prepare journal entries to record the following transactions and events that occurred in Marilyn County during calendar year 2019:
1. The legislature adopted the following budget:
Estimated revenues and other sources:
Property taxes $1,740,000
Sales taxes 1,000,000
Use of fund balance 10,000
Total $2,750,000
Appropriations:
General government—
Salaries $ 420,000
General government—supplies 30,000
Parks department—salaries 2,000,000
Parks department—plants and supplies 300,000
Total $2,750,000
2. The Parks department placed PO 2019-1 for shrubbery in the amount of $52,000 and PO 2019-2 for gardening supplies in the amount of $11,000. The orders were charged to the appropriation for Parks department—plants and supplies.
3. The supplier delivered the shrubbery ordered on PO 2019-1; however, the supplier said he could not deliver some of the shrubs because he no longer carried them. The invoice for $49,000 was approved and forwarded to the comptroller’s office for payment; the rest of the order ($3,000) was cancelled.
4. The supplier delivered the gardening supplies ordered on PO 2019-2. She sent an invoice for $11,200 because some of the items were of a higher quality than ordered. The Parks department accepted the entire delivery and forwarded the invoice for payment.
5. Based on a mid-year review of economy, the finance director concluded that sales tax revenues would be less than the original estimate. As a result, the legislature amended the budget, reducing the sales tax estimate by $50,000 and the Parks department—plants and supplies appropriation by $35,000

Answers

Answer:

Shrubbery Expense (Dr.) $52,000

Gardening Supplies (Dr.) $11,000

Accounts Payable (Cr.) 63,000

Accounts Payable (Dr.) $3,000

Cancelled Order for Shrubbery (Cr.) $3,000

Gardening Supplies (Dr.) $200

Accounts Payable (Cr.) $200

Explanation:

Marilyn County has estimated the expense and raised PO for the park development. The park supplies and shrubbery expense are recorded on the estimated amount. The invoice received is for differential amount and the expense is recorded for the revised amount.

Following are the journal entries to the given points:

For reverse entanglements for order PO 2019-1, reverse the entry in section two (i.e., debit the budgetary fund balance and credit the encumbrances-park department plants and equipment account with the original order amount of $52,000).The order PO 2019-1 expense of $49,000 will be documented by debiting the Expenditures-Parks department plants and supplies account and crediting the vouchers payable account.For reverse impediments on order PO 2019-2, reverse the entry in section 2 (i.e., debit the budgetary cash position & credit the encumbrances-park department plants and supplies account with the initial invoice value of $11,000).An order PO 2019-2 expense of $11,200 will just be recorded by debiting the Expenditures-Parks department plants or supplies account and crediting the vouchers payable account.Sale tax money is reduced by $50,000 in the revised budget, as are funds for parks department plants and supplies by $35,000 in the revised budget. The budgetary fund balance will indeed be reduced by $15,000. (In other words, $50,000–$35,000).Please find the journal entries in the attachment file.

Learn more:

brainly.com/question/12264018

Using a 21 percent rate:Compute the deferred tax asset or deferred tax liability (if any) from a transaction resulting in a $31,000 temporary excess of book income over taxable income.Compute the deferred tax asset or deferred tax liability (if any) from a transaction resulting in an $18,400 permanent excess of book income over taxable income.Compute the deferred tax asset or deferred tax liability (if any) from a transaction resulting in a $55,000 temporary excess of taxable income over book income.

Answers

Answer:

A) 21% of $31,000 excess of book income over taxable income = $6,510 deferred tax liability.

B) There is no deferred tax asset or liability from permanent book/tax difference.

C) Deferred tax asset or deferred tax liability from a transaction resulting in a $55,000 temporary excess of taxable income over book income: 21% of $55,000 excess of taxable income over book income = $11,550 deferred tax asset.

A good economic theory is best described as one that:: A. Is true. B. Realistically depicts the real world economists are trying to model; C. Allows economists to understand the real world, predict events in the real world, and to guide policy; D. Incorporates all aspects of the real world into the model; E. Most economists have confidence in;

Answers

Answer:

b.

Explanation:

thats my answer my module

define mortgage- backed securities.​

Answers

Answer: Mortgage interest is a loan.

Explanation:

Mortgage-backed securities, called MBS, are bonds secured by home and other real estate loans. They are created when a number of these loans, usually with similar characteristics, are pooled together.

Ferrier Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 150,000 pounds of raw materials, the company generates 35,000 pounds of B7, 75,000 pounds of K6, and 40,000 pounds of X9. A standard batch costs $600,000 to produce. The sales prices per pound are $6, $10, and $16 for B7, K6, and X9, respectively. Required Allocate the joint product cost among the three final products using weight as the allocation base. Allocate the joint product cost among the three final products using market value as the allocation bas

Answers

Answer:

Ferrier Chemical Company

Allocation of the joint cost, using weight as the allocation base:

For B7 = $140,000 ($600,000*35,000/150,000)

For K6 = $300,000 ($600,000*75,000/150,000)

ForX9 = $160,000 ($600,000*40,000/150,000)

Allocation of the join cost, using market value:

For B7 =     $78,750 ($600,000*$210,000/$1,600,000)

For K6 =  $281,250 ($600,000*$750,000/$1,600,000)

For X9 = $240,000 ($600,000*$640,000/$1,600,000)

Explanation:

a) Data and Calculations:

Joint cost of a standard batch = $600,000

                                     B7             K6          X9          Total

Pounds generated  35,000     75,000     40,000   150,000

Sales price per pound $6           $10          $16

Market value         $210,000  $750,000 $640,000 $1,600,000    

Allocation of the joint cost, using weight as the allocation base:

For B7 = $140,000 ($600,000*35,000/150,000)

For K6 = $300,000 ($600,000*75,000/150,000)

ForX9 = $160,000 ($600,000*40,000/150,000)

Allocation of the join cost, using market value:

For B7 =     $78,750 ($600,000*$210,000/$1,600,000)

For K6 =  $281,250 ($600,000*$750,000/$1,600,000)

For X9 = $240,000 ($600,000*$640,000/$1,600,000)

b) The market value for each product class is a function of the quantity produced multiplied by the sales price per unit.

A trial balance consists of:Multiple ChoiceA two-column financial statement intended for distribution to interested parties outside the business.A two-column schedule showing the totals of all debits and of all credits made in journal entries.A two-column schedule listing names and balances of all ledger accounts.A two-column schedule of all debit and credit entries posted to ledger accounts.

Answers

Answer:

A two-column schedule listing names and balances of all ledger accounts.

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.

Generally, financial statements are the formally written records of the business and financial activities of a business entity or organization.

There are four (4) main types of financial statements and these are;

1. Balance sheet: it contains financial information about assets, liability, and equity.

2. Cash flow statement: it contains financial information about operating, financial and investing activities.

3. Income statement: it contains financial information about the income and expenses of an organization.

4. Statement of changes in equity: it contains financial information about profits or loss, dividends, etc.

A trial balance consists of a two-column schedule listing names and balances of all ledger accounts.

the model used to describe the flow of economics activity in the free market is a

Answers

Answer:

Flow chart or a flow model. I don't remember which it was

Please help!
Note that common contexts are listed toward the top, and less common contexts are listed toward the bottom. According to O*NET, what are common work contexts for Film and Video Editors? Check all that apply.

(1) extremely bright or inadequate lighting
(2) spend time sitting
(3) exposed to disease or infections
(4) indoors, environmentally controlled
(5) face-to-face discussions
(6) deal with physically aggressive people

Answers

Answer:

BCD is wrong on Edge 2021.| The real Answer is BDE... (Edit)

Explanation:

Using resources from comments on the anwser above (or below) and the bad rating meant that is was wrong. And was also wrong for me.

The REAL ANWSER IS BDE..

Your welcome, have a nice day!

5/28/2021

Find the amount to which $600 will grow under each of these conditions: 8% compounded annually for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ 8% compounded semiannually for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ 8% compounded quarterly for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ 8% compounded monthly for 3 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ 8% compounded daily for 3 years. Assume 365-days in a year. Do not round intermediate calculations. Round your answer to the nearest cent.

Answers

Answer:

Future values:

a. $755.83

b. $759.19

c. $760.95

d. $762.14

e. $762.75

Explanation:

a) Data and Calculations:

Present value = $600

Conditions:

1. 8% compounded annually for 3 years:

N (# of periods) = 3

I/Y (Interest per year) = 8

PV (Present Value)  = $600

PMT (Periodic Payment) = $ 0

FV = $755.83

Total Interest = $155.83

2. 8% compounded semiannually for 3 years.

N (# of periods) = 6

I/Y (Interest per year) = 4

PV (Present Value)  = $600

PMT (Periodic Payment) = $ 0

FV = $759.19

Total Interest $159.19

3. 8% compounded quarterly for 3 years.

N (# of periods) = 12

I/Y (Interest per year) = 2

PV (Present Value)  = $600

PMT (Periodic Payment) = $ 0

FV = $760.95

Total Interest $160.95

4. 8% compounded monthly for 3 years.

N (# of periods) = 36

I/Y (Interest per year) = 0.66667%

PV (Present Value)  = $600

PMT (Periodic Payment) = $0

FV = $762.14

Total Interest = $162.14

5. 8% compounded daily for 3 years. Assume 365-days in a year.

N (# of periods) = 1,095

I/Y (Interest per year) = 0.02192%

PV (Present Value)  = $600

PMT (Periodic Payment) = $0

FV = $762.75

Total Interest $162.75

Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives an 80% discount for its bread at the end of the day. Demand for the bread is normally distributed with a mean of 300 and a standard deviation of 30. What order quantity maximizes expected profit for Bakery A

Answers

Answer:

324

Explanation:

Calculation to determine What order quantity maximizes expected profit for Bakery A

First step is for the Salvage value

Salvage value = $2 × (1 - 80%)

Salvage value= $0.40

Second step is to calculate the Overage cost

Overage cost = $0.50 - $0.40

Overage cost = $0.10

Second step is to calculate the Underage cost

Underage cost = $2 - $0.50

Underage cost = $1.50

Third step is to calculate the The critical ratio

The critical ratio = 1.5/(1.5 + 0.4) = 0.79. z = 0.8

Now let calculate the Order quantity

Order quantity = 300 + (0.8× 30)

Order quantity= 324

Therefore the order quantity maximizes expected profit for Bakery A is 324

ou were left $100,000 in a trust fund set up by your grandfather. The fund pays 6.5% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account

Answers

Answer:

$27,408.71

Explanation:

The question requires us to find the amount of annual withdrawals that can be made out of the investment. Thus use the time value of money techniques to find the missing parameter of payment (pmt)

PV = $100,000

i = 6.5%

n = 4

p/yr = 1

FV = $0

PMT = ?

Thus, the annual withdrawals that can be made out of the investment is $27,408.71

define private equity funds.​

Answers

Answer:

keeping it private and not letting anyone find. out about it or keepin it from people

yep what he said atop.

Use the following information for Taco Swell, Inc., (assume the tax rate is 21 percent): 2017 2018 Sales $ 16,549 $ 18,498 Depreciation 2,376 2,484 Cost of goods sold 5,690 6,731 Other expenses 1,353 1,178 Interest 1,110 1,325 Cash 8,676 9,247 Accounts receivable 11,488 13,482 Short-term notes payable 1,674 1,641 Long-term debt 29,060 35,229 Net fixed assets 72,770 77,610 Accounts payable 6,269 6,640 Inventory 20,424 21,862 Dividends 1,979 2,314 For 2018, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Answers

Answer:

Cash flow from assets = -$1,824

Cash flow to creditors = -$4,844

Cash flow to stockholders = $3,020

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question as follows:

                                                   2017                  2018

Sales                                        $16,549            $18,498

Depreciation                               2,376                2,484

Cost of goods sold                    5,690                 6,731

Other expenses                           1,353                 1,178

Interest                                          1,110                 1,325

Cash                                             8,676               9,247

Accounts receivable                   11,488              13,482

Short-term notes payable            1,674                1,641

Long-term debt                          29,060            35,229

Net fixed assets                         72,770             77,610

Accounts payable                        6,269              6,640

Inventory                                    20,424              21,862

Dividends                                      1,979               2,314

Explanation of the answer is now given as follows:

For 2018 as required, we have the following:

EBIT = Sales - Cost of goods sold - Depreciation - Other expenses = $18,498 - $6,731 - $2,484 - $1,178 = $8,105

Taxes = (EBIT -  Interest) * Tax rate = ($8,105 - 1,325) * 21% = $1,423.80

Operating Cash Flows = EBIT - Taxes + Depreciation = $8,105 - $1,423.80 + $2,484 = $9,165.20

Current assets in 2018 =  Cash in 2018 + Accounts receivable in 2018 + Inventory in 2018 = $9,247 + $13,482 + $21,862 = $44,591

Current liabilities in 2018 = Short-term notes payable in 2018 + Accounts payable in 2018 = $1,641 + $6,640 =$8,281

Current assets in 2017 = Cash in 2017 + Accounts receivable in 2017 + Inventory in 2017 = $8,676 + $11,488 + $20,424 = $40,588

Current liabilities in 2017 = Short-term notes payable in 2017 + Accounts payable in 2017 = $1,674 + $6,269 =$7,943

Increase in net working capital = Net working capital in 2018 - Net working capital in 2017 = (Current assets in 2018 - Current liabilities in 2018) - (Current assets in 2017 - Current liabilities in 2017) = ($44,591 - $8,281) - ($40,588 - $7,943) = $3,665

Net capital spending = Net Fixed Assets in 2018 + Depreciation in 2018 - Net Fixed Assets in 2017 = $77,610 + $2,484 - $72,770 = $7,324

Cash flow from assets = Operating Cash Flows - Increase in net working capital - Net capital spending = $9,165.20 - $3,665 - $7,324 = -$1,823.80 =  -$1,824

Net new long-term debt = Long-term Debt in 2018 - Long-term Debt in 2017 = $35,229 - $29,060 = $6,169

Cash flow to creditors = Interest Expense - Net New Long-term Debt = $1,325 - $6,169 = -$4,844

Cash flow to stockholders = Cash Flow from Assets - Cash Flow to Creditors = -$1,823.80 - (-$4,844) = $3,020.20 = $3,020

Gambino Construction adds materials at the beginning of production and incurs conversion cost uniformly throughout manufacturing. Consider the data that follow. Units Beginning work in process 20,000 Started in August 60,000 Production completed 55,000 Ending work in process, 40% complete 25,000 Conversion cost in the beginning work-in-process inventory totaled $120,000, and August conversion cost totaled $270,000. Assuming use of the weighted-average method, which of the following choices correctly depicts the number of equivalent units for conversion cost and the conversion cost per equivalent unit?
Equivalent Mana 55.000 65 000 65.000 Conversion Cost Per Equivalent 491 6.00 60.000

Answers

Answer:

Conversion EUP = 65,000 units

Conversion cost per EUP = $6.00

Explanation:

Conversion EUP = Units completed + EUP Work in Process

EUP Work in process = % completed * ending WIP

= 40% * 25,000

= 10,000

Conversion EUP = 55,000 + 10,000

= 65,000 units

Conversion cost = Beginning conversion cost + August conversion cost

= 120,000 + 270,000

= $390,000

Conversion cost per unit = 390,000 / 65,000

= $6.00

Ruben is a travel agent. He intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline for $160 each. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $5,200 in advertising costs. How many ticket packages will Ruben need to sell to break even

Answers

Answer:

He would need to sell 130 ticket packages to break even

Explanation:

Breakeven quantity are the number of  units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

Variable cost is cost that varies with output. If output is zero, no variable cost would be incurred.  

Fixed cost is cost that does not vary with output.

[tex]\frac{5200}{200 - 160}[/tex]

[tex]\frac{5200}{40}[/tex] = 130

LaBelle Corporation owns a $6 million whole life insurance policy on the life of its CEO, naming LaBelle as beneficiary. The annual premiums are $95,000 and are payable at the beginning of each year. The cash surrender value of the policy was $56,000 at the beginning of 2021. Required: 1. Prepare the appropriate 2021 journal entry to record insurance expense and the increase in the investment, assuming the cash surrender value of the policy increased according to the contract to $70,000. 2. The CEO died at the end of 2021. Prepare the appropriate journal entry.

Answers

Answer:

1. Dr Cash surrender 14,000

Dr Insurance exp 81,000

Cr Cash 95,000

2. Dr Cash 6,000,000

Cr Cash surrender 70,000

Cr Gain on life 5,930,000

Explanation:

1. Preparation of the appropriate 2021 journal entry to record insurance expense and the increase in the investment

Dr Cash surrender 14,000

(70,000-56,000)

Dr Insurance exp 81,000

(95,000-14,000)

Cr Cash 95,000

2. Preparation of the appropriate journal entry if The CEO died at the end of 2021.

Dr Cash 6,000,000

Cr Cash surrender 70,000

Cr Gain on life 5,930,000

(6,000,000-70,000)

Pharoah Corporation factors $251,700 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2020. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2020, for Pharoah to record the sale of receivables, assuming the recourse obligation has a fair value of $5,010. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answers

Answer:

Cash received (251,700*94%)             $236,598

Add: Due from factor (251,700*4%)    $10,068

Less: Recourse obligation                   $5,010    

Net proceeds                                        $241,656

Gain/Loss = Carrying value - Net proceeds

Gain = $251,700 - $241,656

Gain = $10,044

                                Journal entry

Date                 Account Titles                        Debit         Credit

Aug 15,2020    Cash                                      $236,588

                        Due from factors                   $10,068

                        Gain on sale of receivables  $10,044

                                Recourse liability                              $5,010

                                Account receivable                          $251,700

During April, the first production department of a process manufacturing system completed its work on 330,000 units of a product and transferred them to the next department. Of these transferred units, 66,000 were in process in the production department at the beginning of April and 264,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 88,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.
Weighted average: Costs assigned to output and inventories LO C2
The production department had $918,775 of direct materials and $723,261 of conversion costs charged to it during April. Also, its beginning inventory of $185,284 consists of $142,285 of direct materials cost and $42,999 of conversion costs.
1&2. Using the weighted-average method, compute the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department’s output.

Answers

Answer:

total units completed = 330,000

beginning WIP = 66,000

ending WIP = 88,000

total EUP conversion costs = 330,000 + (88,000 x 30%) = 356,400

total EUP materials = 330,000 + (88,000 x 80%) = 400,400

total conversion costs = $723,261 + $42,999 = $766,260

total materials costs = $918,775 + $142,285 = $1,061,060

conversion cost per EUP = $766,260 / 356,400 = $2.15

materials cost per EUP = $1,061,060 / 400,400 = $2.65

On January 1, a company issues bonds dated January 1 with a par value of $230,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 6% and the bonds are sold for $239,811. The journal entry to record the issuance of the bond is:

Answers

Answer:

Debit : Cash $239,811

Credit : Bonds Payable $239,811

Explanation:

Step 1

First, lets determine the price of Bonds at issuance date (1 January). This is because Bonds are issued at their Issue Price not Par Value.

The Price of the Bond is its present value (PV) and this is calculated as :

FV =  $230,000

PMT = ($230,000 x 7 %) ÷ 2 = $8,050

N =  5 x 2 = 10

P/YR = 2

R = 6%

PV =  ?

Thus, the Present Value (PV) of the Bonds is $239,811.

Step 2

The journal entry to record the issuance of the bond is:

Debit : Cash $239,811

Credit : Bonds Payable $239,811

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