Answer:
Merchandise Inventory (Debit 500)
Cash (Credit 500)
Purchased goods for cash.
Hope this helps
Information is considered material to the financial statements if
I. It falls within industry-specific quantitative guidelines published by the Financial Accounting Standards Board.
II. Its omission could make a difference in the decisions made by a user relying on the financial statements.
III. Its misstatement could make a difference in the decisions made by a user relying on the financial statement.
a. I and IIl only.
b. Il and Ill only.
c. I, Il and III.
d. I only.
Answer:
B
Explanation:
Sheffield Corp. owns the following assets: Asset Cost Salvage Estimated Useful Life A $540000 $42000 10 years B 201000 23500 5 years C 490000 22000 12 years What is the composite life of Sheffield's assets?
Answer:
The composite life is 9.19.
Explanation:
Below is the calculation for composite life of assets:
Composite life = Total Depreciable Cost ÷ Total Annual Depreciation
Composite life = 1143500 ÷ 124300
Composite life = 9.19
The composite life is 9.19.
true and false
4. Know the market trends of products that are in demand not
only within the local market but also in the international market.
Answer:
false
Explanation:
don't think so that s
is the answer
A city starts a solid waste landfill that it expects to fill to capacity gradually over a 20-year period. At the end of the first year, it is 11 percent filled. At the end of the second year, it is 25 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached its capacity.
Which of the following is true for the Year 2 government-wide financial statements?
A. Expense will be $130,000 and liability will be $260,000.
B. Expense will be $140,000 and liability will be $250,000.
If this landfill is judged to be a proprietary fund, what liability will be reported at the end of the second year on fund financial statements?
a. $140,000
b. $0
c. $ 260,000
d. $ 250,000
If this landfill is judged to be a governmental fund, what liability will be reported at the end of the second year on fund financial statements?
a. $0
b. $140,000
c. $260,000
d. $250,000
Answer:
1- B. Expense will be $140,000 and liability will be $250,000
2- d. $250,000
3- d. $250,000
Explanation:
The expense will be $140,000 which is calculated by year 1 and year 2 percent filled. The calculation is as follows:
Year 2 liability : $1,000,000 * 25% = $250,000
Year 1 liability : $1,000,000 * 11% = $110,000
Year 2 expense = $140,000.
Hana owns a bakery in a small coastal town in the Pacific Northwest. She greatly enjoys the process of baking, especially the feelings of relaxation and creativity she has when mixing ingredients and working by the warm oven on cold days. She also feels very pleased when customers purchase her pies, and she makes enough money to pay her bills and save a little each month, which is important to her. What type(s) of reward(s) motivate(s) Hana's baking
Answer: Both intrinsic and extrinsic reward
Explanation:
Intrinsic motivation is when we do things simply because we find it enjoyable and we don't need any external reward for it. Since, Hana greatly enjoys the process of baking, especially the feelings of relaxation and creativity, this is an intrinsic reward.
On the other hand, extrinsic motivation occurs when one expects an external reward. Since, Hana feels very pleased when customers purchase her pies, and she makes enough money to pay her bills and save a little each month, she's extrinsically motivated.
Therefore, the answer is Both intrinsic and extrinsic reward.
January 2, 2018, Cullumber, Inc. purchased a patent for a new consumer product for $810000. At the time of purchase, the patent was valid for 15 years; however, the patent’s useful life was estimated to be only 10 years due to the competitive nature of the product. On December 31, 2021, the product was permanently withdrawn from the market under governmental order because of a potential health hazard in the product. What amount should Cullumber charge against income during 2021, assuming amortization is recorded at the end of each year?
Answer:
Cullumber, Inc.
The amount that Cullumber should charge against income during 2021 is:
= $567,000.
Explanation:
a) Data and Calculations:
Cost of a purchased patent = $810,000
Estimated useful life = 10 years
Annual amortization expense = $81,000
Accumulated amortization for 3 years = $243,000 ($81,000 * 3)
Book value of patent on December 31, 2021 = $567,000 ($810,000 - $243,000)
The remaining book value should be charged against income in 2021 because of the withdrawal of the product.
Shen lives in San Diego and runs a business that sells guitars. In an average year, he receives $723,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $423,000; he also pays wages and utility bills totaling $267,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Shen does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $20,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Paolo's costs in the following table as either an implicit cost or an explicit cost of selling guitars.
a. The salary Paolo could earn if he worked as a financial advisor
b. The wages and utility bills that Paolo pays
c. The wholesale cost for the guitars that Paolo pays the manufacturer
d. The rental income Paolo could receive if he chose to rent out his showroom
Answer:
Shen
Paolo's Implicit and Explicit Costs:
Implicit Costs:
a. The salary Paolo could earn if he worked as a financial advisor = $20,000
d. The rental income Paolo could receive if he chose to rent out his showroom = $2,000
Total implicit costs = $22,000
Explicit Costs:
b. The wages and utility bills that Paolo pays = $267,000
c. The wholesale cost for the guitars that Paolo pays the manufacturer = $423,000
Total explicit costs = $690,000
Explanation:
a) Data and Analysis:
Sales revenue from selling guitars per year = $723,000
Cost of goods sold = $423,000
Wages and Utility expenses = $267,000
Accounting profit = $33,000 ($723,000 - ($423,000 + $267,000))
Opportunity costs:
Annual rent to be received from showroom if rented out = $2,000
Salary as a financial advisor = $20,000
Economic profit = $11,000 ($33,000 - $22,000)
Marketing channels can achieve economies of scale through:a. overcoming spatial discrepanciesb. overcoming temporal discrepanciesc. overcoming discrepancies of quantityd. specialization and division of labor
Answer: D. specialization and division of labor
Explanation:
Economies of scale refers to the cost advantages that are reaped by companies when there is efficient production such that production increases and there's lowering of costs.
Economies of scale can be achieved by marketing channels through specialization and division of labor. This can be done by aiding the producers who doesn't have the finance and lacks motivation, or the expertise to market directly to the consumers.
Vaughn’s standard quantities for 1 unit of product include 5 pounds of materials and 1.0 labor hours. The standard rates are $4 per pound and $5 per hour. The standard overhead rate is $6 per direct labor hour. The total standard cost of Vaughn’s product is $31.00. $25.00. $15.00. $11.00.
Answer:
$31.00
Explanation:
Calculation to determine what The total standard cost of Vaughn's product is
Using this formula
Total standard cost of product=(Material Standard rate per pound × pounds of material) + (Labor standard rate per hour × labor hours) + (Standard overhead rate x labor hours)
Let plug in the formula
Total standard cost of product=[($4 × 5) + ($5 × 1.0)]+ ($6 × 1.0)
Total standard cost of product=($20+$5)+$6
Total standard cost of product= $25.00 +$6
Total standard cost of product= $31.00
Therefore The total standard cost of Vaughn's product is $31.00
James Ryan has been a Budweiser Beer distributor for the past 20 years. James owns a ________ franchise.
Answer:
product and trademark
Explanation:
These are the options for the question
business format
product and business format
product plus
business design
product and trademark
product and trademark
Product franchise can be regarded as franchising agreement in which manufacturers give a retailers access to distribute the products of the manufacturer using the trademark as well as names of the manufacturer. It is right given to to market a product using another person trade mark.
For, instance in the case whereby James Ryan has been a Budweiser Beer distributor for the past 20 years. Then James owns a product and trademark
franchise.
All operating expenses are paid in cash in the month incurred. If HDC expects to sell 20,000 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement
Answer:
$123,400
Explanation:
Calculation to determine what amount on the January pro forma income statement
Freight-out $5,000
(20,000 units x 0.25)
Depreciation on Admin. Equipment $10,000
Sales and Admin Sal. $46,400
[$40,000 + (.02 x $320,000)]
Advertising $12,000
Lease $45,000
Miscellaneous $5,000
Total $123,400
Therefore what amount on the January pro forma income statement is $123,400
under FINRA rules, numbered accounts are: A prohibited B permitted with the prior approval of FINRA C permitted if the firm maintains a written statement of the customer attesting to ownership D permitted without any additional supporting documentation
Answer:
C permitted if the firm maintains a written statement of the customer attesting to ownership
Explanation:
FINRA can be regarded as body which carry out regulation of trading in corporate bonds, as well in equities, and securities futures. All firms that deals with securities are
usually member of FINRA.One of FINRA requirements is that
maintaining an accounts should be in
customer name a numbered account can be maintained in case the firm leave a written statement by the customer in a file which attest to ownership.It should be noted that under FINRA rules, numbered accounts are permitted if the firm maintains a written statement of the customer attesting to ownership.
Principles-based standards differ from a rules-based approach because: Principles-based standards rely on bright-line concepts to apply accounting standards Rules-based standards rely on bright-line rules to apply accounting standards Principles-based standards set uniform goals for the application of accounting standards Rules-based standards form the basis of IFRS
Answer: Principles-based standards set uniform goals for the application of accounting standards
Explanation:
Rule based standards are quite rigid and as a result, set specific goals when it comes to the application of accounting standards. This is in contrast to Principles based standards that set more uniform or general goals that should be met.
This is why IFRS is preferred by most nations in the world as opposed to U.S. GAAP. IFRS gives principle based standards which allow leeway unlike U.S. GAAP which is rules based and gives little leeway in application.
Heritage, Inc., had a cost of goods sold of $44,721. At the end of the year, the accounts payable balance was $8,253. How long on average did it take the company to pay off its suppliers during the year
Answer:
Account payable days = 67.36 days
Explanation:
The payable days is the average length of time it takes a business to settle its account payable. It is calculated as thus;
Account payable days = Average account payable / Cost of goods sold × 365
Account payable = $8,253/44,721 × 365
Account payable = 67.36
Therefore, it will take Heritage about 67.36 days to settle its account payable
Your company has an opportunity to invest in a project that is expected to result in after-tax cash flows of $7,000 the first year, $9,000 the second year, $12,000 the third year, -$8,000 the fourth year, $19,000 the fifth year, $25,000 the sixth year, $28,000 the seventh year, and -$6,000 the eighth year. The project would cost the firm $47,300. If the firm's cost of capital is 18%, what is the modified internal rate of return
Answer:
The modified internal rate of return is 15.67%.
Explanation:
Note: See the attached excel file for the calculation of the total present value of the after-tax cash flows.
From the attached excel file, we have:
Total present value of the after-tax cash flows = $40,332.66
The modified internal rate of return (MIRR) can be calculated using the following formula:
MIRR = (PV / Outlay)^(1/n) * (1 + r) - 1……………….. (2)
Where;
PV = Total present value of the after-tax cash flows = $40,332.66
Outlay = Absolute value of cost of the project = $47,300
r = cost of capital = 18%, or 0.18
n = number of years = 8
Substitute the values into equation (1) to have:
MIRR = ($40,332.66 / 47,300)^(1/8) * (1 + 0.18) - 1 = 0.1567, or 15.67%
Therefore, the modified internal rate of return is 15.67%.
"Lean supply chain management focuses on eliminating waste: Group of answer choices in a firm's sourcing and logistics activities. within a firm's internal operations. in flows of information and money among supply chain partners. in all of the above areas."
Answer:
in all of the above areas.
Explanation:
Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers. Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers.
A lean business is a business concept used by organizations to eliminate waste and maximize value for growth and development. The lean business concept include the following;
I. A total quality management (TQM): it is a management framework that is focused on achieving long-term success through the satisfaction of your customers by the efforts of all the member of staff in an organization.
II. A continuous improvement (CI): it is a management technique that is focused on improving manufacturing processes, products and services through the elimination of redundancy and time-wasting activities in an organization.
III. Just-in-time (JIT): it is a management framework that is focused on cutting manufacturing costs and increase efficiency between suppliers and consumers through the use of a proper inventory system.
Hence, Lean supply chain management focuses on eliminating waste:
I. In a business firm's sourcing and logistics activities.
II. In the internal operations of a business firm.
III. In flows of information and money among various supply chain partners.
What is the importance of computer applications in the business domain? How Computer applications support businesses to work ubiquitously? Give valid reasoning with examples.
Answer:
Explanation:
The importance of computer applications in the business domain is that it allows for the automatization of daily tasks. This is also the reason why businesses that implement such applications are able to work ubiquitously. The software applications are designed to automate all of the tasks that the business needs and perform them quickly and efficiently, if a certain task is not able to be automated then the software still makes completing the task by only requiring user input for the absolutely necessary parts of the task. One example of this would be a logistics application for businesses where inventory is automatically calculated as sales go through and automatically replenished by sending inventory requests to suppliers.
A stock has a beta of 1.5 and an expected return of 16.35%. What is the risk-free rate if the market rate of return is 12.5%
Answer:
4.8%
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
16.35% = r + 1.5(12.5 - r)
16.35% = r + 18.75 - 1.5r
2.4 =0.5r
r = 4.8%
Suppose the cross-price elasticity of demand between goods X and Y is -5. How much would the price of good Y have to change in order to change the consumption of good X by 50 percent
Answer:
-2.5%
Explanation:
The computation is given below:
We know that
Cross price elasticity of demand = Percentage change in the price of y ÷ percentage change in the price of x
And, the same is given i.e. -5
So here the percentage of change in the price of y is
= -5 × 50%
= -2.5%
Your uncle has just purchased a wheat farm and wants your advice on how he should price his product. Explain to your uncle the characteristics of the market structure under which his farm falls and how this will help him to determine the price and quantity of the wheat he will produce.
Answer:
the wheat firm is perfectly competitive
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
he is a price taker and the price of his wheat which would be equal to equilibrium price would be determined by market forces
if he sells at the market price, he would sell all his wheat
Explanation:
If the uncle sells above equilibrium price, he would not sell any wheat
he cannot sell below equilibrium price because he would make losses
KLM Corporation's quick assets are $6,123,000, its current assets are $13,440,000 and its current liabilities are $8,144,000. Its acid-test ratio equals:
Answer:
the acid-test ratio is 0.75 times
Explanation:
The computation of the acid-test ratio is shown below:
We know that
Acid-test ratio is
= Quick assets ÷ current liabilities
= $6,123,000 ÷ $8,144,000
= 0.75 times
Hence, the acid-test ratio is 0.75 times
basically we divided the quick assets from the current liabilities so that the acid-test ratio could come
Q8 Bernard co. has 9% coupon bonds on the market that have 11 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 10%, what is the current bond price (in $ dollars)
Answer: Hello the face value of the bond is missing hence I will assume $1000 as the face value.
$935.05
Explanation:
Assumption: Face value of Bond = $1,000
Determine the current bond price
Nper = 11 years
YTM ( rate ) = 10%
PMT = 9% ( coupon rate ) * 1000 ( face value of bond ) = 90
Fv = $1000
apply excel function to determine the current bond price
=PV( 10%,11,90,1000,0) = $935.05
Note : You can insert the face value you have into the excel function if the value you have isn't $1000 as I assumed
Assume the current U.S. dollar-yen spot rate is 125¥/$. Further, the current nominal 180-day rate of return in Japan is 3% and 4% in the United States. What is the approximate forward exchange rate for 180 days?
Answer:
124.39Y/$
Explanation:
Calculation to determine the approximate forward exchange rate for 180 days
Using this formula
Forward exchange rate/spot exchange rate = [(1+rh)/(1+rf)]*r
Where,
rh = periodic interest rate in the home currency
rf = periodic interest rate in the foreign currency
r=Spot rate
Forward exchange rate= [1+3%*180/360]/[1+4%*180/360]*125¥/$.
Forward exchange rate = 1.015/1.02* 125¥/$
Forward exchange rate= 124.39Y/$
Therefore the approximate forward exchange rate for 180 days is 124.39Y/$
Jasper makes a $84,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the transaction should be:__________
a) Debit Notes Receivable for $84,000, credit Cash $84,000.
b) Debit Accounts Receivable $84,000, credit Notes Receivable $84,000.
c) Debit Cash $84,000, credit Notes Receivable for $84,000
d) Debit Notes Payable $84,000; credit Accounts Payable $84,000.
e) Debit Notes Receivable $84,000; credit Sales $84,000.
Answer:
a) Debit Notes Receivable for $84,000, credit Cash $84,000.
Explanation:
Based on the information given we were told that Jasper makes the amount of $84,000 which means that Jasper's appropriate journal entry to record the transaction should be:
Debit Notes Receivable $84,000
CreditCash $84,000
"VB PERSONAL FINANCE VIRTUAL BUSINESS HIGH SCHOOL powered by Knowledge Mathers Buying a Home Math Quiz QUESTION 8 of 10: Your house is for sale for $210,000. A realtor will charge you a 3% sales commission. If you choose a "sale by owner" option bypassing a realtor, you will pay no commission, but you will have to pay an attorney an average of $950 at your closing. What will you save by choosing the "sale by owner" option? O a) $1,865 O b) $2,150 Oc) $5,350 O d) $9,500 Submit ©2021 Knowledge Matters, Inc.
Answer:
c) $5,350
Explanation:
Calculation to determine What will you save by choosing the "sale by owner"
Using this formula
Amount saved=(Property sales value*Sales Commission)-Average
Let plug in the formula
Amount saved=($210,000*3)-$960
Amount saved=$6,300-$950
Amount saved=$5,350
Therefore What will you save by choosing the "sale by owner" is $5,350
The house is for sale for $210,000. A realtor will charge you a 3% sales commission. If we choose a "sale by owner" option bypassing a realtor, you will pay no commission, but we will have to pay an attorney an average of $950 at your closing. We save by choosing the "sale by owner" $5,350. The correct option is c.
Calculation to determine What will you save by choosing the "sale by owner
Using this formula
Amount saved (Property sales value Sales Commission)-Average
Let plug in the formula
Amount saved ($210,000+3)-$960
Amount saved-$6,300-$950
Amount saved $5,350
Learn more about sale, here:
https://brainly.com/question/28233674
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The Quick Buck Company is an all-equity firm that has been in existence for the past three years. Company management expects that the company will last for two more years and then be dissolved. The firm will generate cash flows of $450,000 next year and $790,000 in two years, including the proceeeds from the liquidation. There are 20,000 shares of stock outstanding and shareholders require a return of 12 percent.
Required:
What is the current price per share of the stock?
Answer:
$53.09
Explanation:
Calculation to determine current price per share of the stock
First step is to determine the Dividend per share in Year 1
Using this formula
Dividend per share in Year 1 = Cash flow generated next year / Number of shares
Let plug in the formula
Dividend per share in Year 1 == $450,000 / 20,000
Dividend per share in Year 1 == $ 22.5
Second step is to determine the Dividend per share in Year 2 using this formula
Dividend per share in Year 2 = Cash flow generated in two years / Number of shares
Let plug in the formula
Dividend per share in Year 2 = $790,000 / 20,000
Dividend per share in Year 2 = $39.5
Dividend per share in Year 2 =$40 Approximately
Now let determine the Share price today using this formula
Share price today = [ Dividend in Year 1 / (1 + Required rate of return) ] + [ Dividend in Year 2 / (1 + Required rate of return)2 ]
Let plug in the formula
Share price today = [22.5 /(1+.12)]+ (40 / 1.12^2
Share price today = (22.5 /1.12) + (40 / 1.12^2)
Share price today =$20.09+(40/1.25)
Share price today =$20.09+32
Share price today = $ 53.09
Therefore current price per share of the stock
Is $53.09
Use the following information to answer this question.
Bayside, Inc. 2010 Income Statement ($ in thousands)
Net sales $ 6,020
Less: Cost of goods sold 4,240
Less: Depreciation 325
Earnings before interest and taxes $ 1,455
Less: Interest paid 29
Taxable Income $ 1,426
Less: Taxes 499
Net income $ 927
Bayside, Inc. 2009 and 2010 Balance Sheets ($ in thousands)
2009 2010 2009 2010
Cash $ 80 $ 185 Accounts payable $ 1,445 $ 1,745
Accounts rec 940 780 Long-term debt 760 550
Inventory 1,560 2,010 Common stock $ 3,125 $ 3,020
Total $ 2,580 $ 2,975 Retained earnings 820 1,070
Net fixed assets3,570 3,410 Total assets $ 6,150 $ 6,385
Total liab. & equity$ 6,150 $ 6,385
What is the equity multiplier for 2010?
a) 0.52
b) 2.11
c) 2.04
d) 1.04
e) 1.56
Answer:
The correct option is e) 1.56.
Explanation:
Note: The data in this question are merged together. The complete question with the sorted data is therefore provided before asnwering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answer is now provided as follows:
The equity multiplier can be described as a financial leverage ratio gives a measure of the total assets of a company that is financed by the shareholders of the company. This can be calculated using the following formula:
Equity multiplier = Total assets / Total Shareholder's Fund ........... (1)
Where, for Bayside, Inc. in 2010, we have:
Total assets = $6,385
Total Shareholder's Fund = Common stock + Retained earnings = $3,020 + $1,070.00 = $4,090
Substituting the figures into equation (1), we have:
Equity multiplier = $6,385 / $4,090 = 1.56
Therefore, the equity multiplier for 2010 is 1.56 and the correct option is e) 1.56.
After a careful analysis, managers at Haremon's have concluded that 20 customers per hour need to check out. If the sole cashier can check out 25 customers per hour, what is the cashier's (implied) utilization?
Answer:
Haremon Corporation
The cashier's (implied) utilization is:
= 125%.
Explanation:
a) Data and Calculations:
Billable customers per hour = 25
Estimated number of customers that the cashier is expected to check out per hour = 20
Therefore, the cashier's (implied) utilization is the number of billable customers per hour divided by the total number of customers that the cashier is expected to check out per hour (x 100)
= 25/20 * 100 = 125%
Here are the comparattive income statements of Georgia Development Corporation.
December 31, 2017 December 31, 2016
Net sales $600,000 $500,000
Cost of goods sold 414,000 350,000
Gross profit 186,000 150,000
Operating expenses 150,000 120,000
Net income $36,000 $30,000
Required:
Prepare a horizontal analysis of the income statement data for Georgia Development Corporation using 2016 as a base.
Answer:
When using horizontal analysis, figures are compared across different years with the subsequent year differences with the base year figures being a percentage of the base year's figures.
12/31/2017 12/31/2016 Difference Percentage
Net sales $600,000 $500,000 $100,000 20.0%
Cost of goods sold $414,000 $350,000 $64,000 18.3%
Gross profit $186,000 $150,000 $36,000 24.0%
Operating expenses $150,000 $120,000 $30,000 25.0%
Net income $36,000 $30,000 $6,000 20.0%
Net sales percentage = 100,000 / 500,000 = 20%
Cost of goods sold = 64,000 / 350,000 = 18.3%
Gross profit = 36,000 / 150,000 = 24%
Operating expenses = 30,000 / 120,000 = 25%
Net income = 6,000 / 30,000 = 20%
Overhead costs include: Multiple Choice Direct and indirect costs. Indirect costs only. Direct costs only. Neither direct nor indirect costs.
Answer:
Indirect costs only
Explanation:
Overhead is defined as cost incurred by a business in running it's operations, it cannot be directly linked to a product in the manufacturing process.
These costs are incurred regardless of how successful a business is.
For example rent, tax, utilities, insurance, and maintenance of machinery are all overhead costs.
Since they do not contribute directly to the product they are referred to as indirect costs.