Answer:
A. a. cafeteria meals.
c. textbooks.
d. pens.
B. More
Explanation:
Students use textbooks and pens at school to study and take down notes. They also go to the cafeteria at meal times to eat. A student does not directly need a washing machine to be a student so the options are cafeteria meals, textbooks and pens.
Overtime, tuition fees have ballooned and are now much higher than they used to be. Students therefore spend a significant amount of their budget on tuition as opposed to Households. It can therefore be said that student's basket overtime has likely changes more than the CPI.
Classifying Cash Flow Statement Components
The following table presents selected items from a recent cash flow statement of General Mills, Inc. For each item, determine whether the amount would be disclosed in the cash flow statement under operating activities, investing activities, or financing activities. (General Mills uses the indirect method of reporting cash flows from operating activities).
DOLE DOLE FOOD COMPANY, INC.
Selected items from its Cash Flow Statement
1. Long-term debt repayments
2. Change in receivables
3. Depreciation and amortization
4. Change in accrued liabilities
5. Dividends paid
6. Change in income taxes payable
7. Cash received from sales of assets and businesses
8. Net income
9. Change in accounts payable
10. Short-term debt borrowings
11. Capital expenditures
Answer:
1. Long term debt payment - Financing activities
2.Changes in Receivables - Operating activities
3. Depreciation and amortization - Operating activities
4. Changes in accrued liabilities - Operating activities
5. Dividend paid - Financing activities
7. Cash Received from sales of assets and business - Investing activities
8. Net Income - Operating activities
9. Change in accounts payable - Operating activities
10. Short term debt borrowings - Financing activities
11. Capital Expenditures - Investing activities
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Activity Cost Pool Estimated Overhead Cost Expected Activity Labor-related $ 26,800 5,000 direct labor-hours Machine-related $ 4,500 9,000 machine-hours Machine setups $ 41,800 1,100 setups Production orders $ 17,000 500 orders Product testing $ 15,500 500 tests Packaging $ 51,000 3,400 packages General factory $ 52,400 5,000 direct labor-hours Exercise 4-2 Part 1 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Answer:
Labor-related $5.36
Machine-related $0.5
Machine setups $38
Production orders $34
Product testing $31
Packaging $15
General factory $10.48
Explanation:
Computation for the activity rate for each activity cost pool using this formula
Activity rate =Estimated cost / Estimated activity
Let plug in the formula
Labor-related $ 26,800/5,000=$5.36
Machine-related $ 4,500/9,000=$0.5
Machine setups $ 41,800/1,100 =$38
Production orders $ 17,000/500=$34
Product testing $ 15,500/500 =$31
Packaging $ 51,000/3400=$15
General factory $ 52,400/5000=$10.48
Therefore the activity rate for each activity cost pool are:
Labor-related $5.36
Machine-related $0.5
Machine setups $38
Production orders $34
Product testing $31
Packaging $15
General factory $10.48
The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production $ 35 Selling and administrative $ 15 Fixed costs per year: Production $120,400 Selling and administrative $101,140 Last year, 6,020 units were produced and 5,920 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
Answer:
See below
Explanation:
The computation of carrying value on the balance sheet of the ending inventory of finished goods under variable costing is seen below;
Before that, we have to determine the unit cost
Unit fixed manufacturing overhead = $120,400 ÷ 6,020 units = $20
Then, the difference will be;
= Unit fixed manufacturing overhead × change in inventory in units
= $20 × (6,020 units - $5,920)
= $20 × 100 units
= $2,000 less than absorption costing
Your boss, whose background is in financial planning, is concerned about the company's high weighted average cost of capital (WACC) of 29%. He has asked you to determine what combination of debt-equity financing would lower the company's WACC to 17%. If the cost of the company's equity capital is 6% and the cost of debt financing is 27%, what debt-equity mix would you recommend? The debt-equity mix should be % debt and % equity financing?
Answer:
The debt-equity mix should be 51.38% debt, and 48.62% equity.
Explanation:
The WACC formula for this scenario is
WACC = Cost of equity x weight of equity + cost of debt x weight of debt
We define the weight of debt as X, and the weight of equity as 1-X
Now, we replace the values into the formula:
17% = 27% * X+ 6% * (1-X)
17% = 27%X + 6% - 6%X
17% - 6% = 27%X - 6%X
11% = 21%X
X = 11% / 21%
X = 51.38%
So the weight of debt is 51.38%, and the weight of equity is 1-51.38% = 48.62%
Direct Labor Hours Machine Hours Blending Department Whole milk 260 650 Skim milk 245 710 Cream 215 260 720 1,620 Packing Department Whole milk 470 500 Skim milk 300 415 Cream 130 165 900 1,080 Total 1,620 2,700 The management of Spotted Cow Dairy Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Blending Department $178,200 Packing Department 121,500 Total $299,700 Required: 1. Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing Department. Blending Department $fill in the blank 1 110 per machine hour Packing Department $fill in the blank 2 per direct labor hour 2. Determine the product factory overhead costs, using the multiple production department rates in (1). Whole Milk Skim Milk Cream Blending Department factory overhead $fill in the blank 3 71,500 $fill in the blank 4 78,100 $fill in the blank 5 28,600 Packing Department factory overhead fill in the blank 6 fill in the blank 7 fill in the blank 8 Total factory overhead $fill in the blank 9 $fill in the blank 10 $fill in the blank 11
Answer:
1. Wee have:
Blending department overhead rate = $110 per machine hour
Packing department overhead rate = $135 per direct labor hour
2. We have:
Whole Milk Total factory overhead = $134,950
Skim Milk Total factory overhead = $118,600
Cream Total factory overhead = $46,150
Explanation:
Note: This question is not complete and the data in it are merged together. The complete question with the sorted data are therefore presented before answering the question as follows:
Spotted Cow Dairy Company manufactures three products—whole milk, skim milk, and cream—in two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $299,700.
The three products consume both machine hours and direct labor hours in the two production departments as follows:
Direct Labor Hours Machine Hours
Blending Department
Whole milk 260 650
Skim milk 245 710
Cream 215 260
720 1,620
Packing Department
Whole milk 470 500
Skim milk 300 415
Cream 130 165
900 1,080
Total 1,620 2,700
The management of Spotted Cow Dairy Company now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows:
Blending Department $178,200
Packing Department 121,500
Total $299,700
Required:
1. Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing Department.
2. Determine the product factory overhead costs, using the multiple production department rates in (1).
The explanation of the answer is now given as follows:
1. Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing Department.
Blending department overhead rate = Blending department overheads / Blending department machine hours = $178,200 / 1,620 = $110 per machine hour
Packing department overhead rate = Packing department overheads / Packing department labor hours = $121,500 / 900 = $135 per direct labor hour
2. Determine the product factory overhead costs, using the multiple production department rates in (1).
Note: See the attached excel file for the determination of the product factory overhead costs, using the multiple production department rates.
In the attached excel file the following formulae are used to calculate the product factory overhead costs:
Blending department factory overhead = Machine fours * Overhead rate per machine hour
Packing department factory overhead = Direct labor hours * Overhead rate per direct labor hour
From the attached excel file, we have:
Whole Milk Total factory overhead = $134,950
Skim Milk Total factory overhead = $118,600
Cream Total factory overhead = $46,150
The term LCM refers to the process companies use to ensure they are always purchasing lowest cost items. a rule which requires a company to adjust the cost of its inventory when the market price decreases below the cost. the adjustment a company makes for inventory lost or stolen. the repeated calculations necessary to properly record LIFO costs.
Answer:
b. a rule which requires a company to adjust the cost of its inventory when the market price decreases below the cost.
Explanation:
LCM means lower of cost or market value. It is a rule under which the value of inventory is adjusted to lower of cost or market value. Also, it is a rule which requires a company to adjust the cost of its inventory when the market price decreases below the cost.
Hence, the correct option is a rule which requires a company to adjust the cost of its inventory when the market price decreases below the cost.
can individual be too motivated? discuss
Answer:
Yes, an individual can be too motivated. It can negatively affect their personality and perception. They may feel that they have to get things done no matter the cots and they may mistreat people or make poor decisions to accomplish that. Many of them also become arrogant and overconfident.
"Yes," an individual can be too motivated. A complete description is provided below.
Throughout the employment, a person may be erroneously over-motivated. In other words, the motivation or inspiration of an individual might be motivated by circumstances that don't significantly require him to succeed.
The major incentive of a certain individual might have been to impress or satisfy just their authorities.
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Quantum Logistics, Inc., a wholesale distributor, is considering the construction of a new warehouse to serve the southeastern geographic region near the Alabama-Georgia border. There are three cities being considered. After site visits and a budget analysis, the expected income and costs associated with locating in each of the cities has been determined. The life of the warehouse is expected to be 12 years, and MARR is 15%/year. City Initial Cost Net Annual Income Lagrange $320,000 $205,000 Auburn $880,000 $35,000 Anniston $1,040,000 $455,000 a. What is the annual worth of each site
Answer:
Lagrange Annual Worth $145,966.15
Auburn Annual Worth $873,543.17
Anniston Annual Worth=$435,814
Explanation:
Calculation to determine the annual worth of each site
Using this formula
Annual worth of Project = A - P* r/(1-(1+r)^-N)
Let plug in the formula
Lagrange Annual Worth = $205,000-$320,000*15%/(1-(1+15%)^-12)
Lagrange Annual Worth = $145,966.15
Auburn Annual Worth = $880,000-$35,000*15%/(1-(1+15%)^-12)
Auburn Annual Worth=$873,543.17
Anniston Annual Worth = $455,000-$104,000*15%/(1-(1+15%)^-12)
Anniston Annual Worth=$435,814
Therefore the annual worth of each site will be :
Lagrange Annual Worth $145,966.15
Auburn Annual Worth $873,543.17
Anniston Annual Worth=$435,814
Croquet, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $13 Variable overhead 7 Fixed overhead 10 Total $30 Saran Company has contacted Croquet with an offer to sell it 5,000 of the wickets for $17 each. Fixed costs of $4 per unit is unavoidable. Should Croquet make or buy the wickets, why
Answer:
See below
Explanation:
Supplier's quotation (5,000 × $17)
$85,000
Less: Relevant costs
Variable cost (5,000 × $16)
$80,000
Avoidable fixed cost (5,000 × $4)
$20,000
Balance $100,000
Loss $15,000
Croquet should buy the widgets because the relevant cost of in house production is higher than the cost of buying it outside.
Drag the tiles to the correct boxes to complete the pairs.
Match the cash outflows to their cash flow activities.
investing activities
financing activities
administration expenses
operating activities
purchase of fixed assets
repayment of loan
Answer:
Operating activities - - - - - - - - > administration expenses.
Purchase of fixed assets - - - - - - - > investing activities
Repayment of loan - - - - - - - - - - > financing activities.
Explanation:
please can see answer this fast. Briefly explain how the market mechanism relieves excess demand.
Answer:
The decrease in supply creates an excess demand at the initial price. a. Excess demand causes the price to rise and quantity demanded to decrease. ... A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined.
Hope it helps!!!
Please Help!!
1. True or False: A tax lien which is a failure of an individual to pay his or her taxes and it can remain on a credit report for up to 10 years.
2. True or False: Credit utilization is the ratio of an individual's credit balance to their credit card limit.
3. True or false: Chapter 7 bankruptcy is focused more on the restructuring of an individual's finances rather than the elimination of debt altogether.
Answer:
1. True
2. True
3. False
Explanation:
1. True (If a tax is unpaid then it remains on the credit report up to 10 years)
2. True ( The statement correctly stats that Credit utilization is the ratio of an individual's credit balance to their credit card limit )
3. False because Chapter 7 bankruptcy is focused more on restructuring of debt altogether.
Alexa and David are managers of different sales teams. Together, they decide to have a competition between teams to see who can bring in the most new clients this month. To increase the sense of competition, they create spirit days where they wear team colors (Alexa's team: blue, David's black), strategize ways to beat the other group, and keep a running total of who is winning on a white board. Alexa and David are employing ________ to increase productivity.
Incomplete question. The options read;
Social identity theoryParasocial interaction theoryLeader-member exchange theoryVigilant interaction theoryExpectancy theoryAnswer:
Vigilant interaction theory
Explanation:
Remember, we are told that Alexa and David kept a running total of who is winning on a whiteboard for the entire team to see while also strategizing ways to beat the opposing team.
According to the vigilant interaction theory, the productivity of a team is usually dependent upon the group's attentiveness during their group interaction.
Hence, we can thus conclude that Alexa and David are employing vigilant interaction theory to increase productivity.
XYZ stock price and dividend history are as follows: YearBeginning-of-Year PriceDividend Paid at Year-End2015 $130 $5 2016 144 5 2017 120 5 2018 125 5 An investor buys six shares of XYZ at the beginning of 2015, buys another three shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all eight remaining shares at the beginning of 2018.a. What are the arithmetic and geometric average time-weighted rates of return for the investor
Answer:
Arithmetic mean = 3.67%
Geometric mean = 3.02%
Explanation:
The following sorted data are given in the question:
Year Beginning-of-Year Price Dividend Paid at Year-End
2015 $130 $5
2016 144 5
2017 120 5
2018 125 5
Therefore, we have:
Arithmetic average return = Sum of returns/ number of years ………....….. (1)
Geometric average return = n * ((1+r1)*(1+r2)*(1+r3)…(1+rn)^(1/n) - 1 .……….. (2)
Where;
n = years 1, 2, 3….
r1, r2, r3… are the returns for year 1, 2, 3….
Return for each year = ((Current year Beginning-of-Year Price – Previous year Beginning-of-Year Price) + dividend) / Previous year Beginning-of-Year Price .................... (3)
Using equation (3), we have:
2016 Return = ((144 - 130) + 5) /130 = 0.146153846153846
2017 Return = ((120 - 144) + 5) /159 = -0.119496855345912
2018 Return = ((125 - 120) + 5) /120 = 0.0833333333333333
Using equation (1), we have:
Arithmetic mean = (2016 Return + 2017 Return + 2018 Return) / 3 = (0.1461538461538460 - 0.1194968553459120 + 0.0833333333333333) / 3 = 0.0367, or 3.67%.
Using equation (2), we have:
Geometric mean = ((1 + 2016 Return) * (1 + 2017 Return) * (1 + 2018 Return))^(1/3) - 1 = ((1 + 0.146153846153846) * (1 - 0.119496855345912) * (1 + 0.0833333333333333))^(1/3) - 1 = 0.0302, or 3.02%
Golden Generator Supply is approached by Mr. Stephen, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Golden Generator Supply has excess capacity. The following per unit data apply for sales to regular customers:
Direct materials $180
Direct manufacturing labor 170
Variable manufacturing support 250
Fixed manufacturing support 140
Total manufacturing costs 740
Markup (10% of total manufacturing costs) 74
Estimated selling price $814
Required:
If Mr. Stephen wanted a long-term commitment, and not a one-time-only special order, for supplying this product, calculate the most likely price to be quoted assuming the markup remains the same?
Answer:
$814
Explanation:
With regards to the above, if it charges a price below the full cost and markup, it will not be able to sustain such in the long run.
However, when a company received one time only, then they may be willing to charge a lower price in order to cover a portion of their fixed cost when there is extra capacity; whereas in the long run, they will have to charge at full cost so that they will not lose money.
Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. His broker quotes a price of $1,160. Jim is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 10 percent interest, and it has 20 years remaining until maturity. The current yield to maturity on similar bonds is 8 percent. a. Calculate the present value of the bond. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)
Answer:
Bond Price or Present value = $1196.362948 rounded off to $1196.36
Explanation:
To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, the annual coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 1000 * 0.1 = $100
Total periods (n) = 20
r or YTM = 0.08 or 8%
The formula to calculate the price of the bonds today is attached.
Bond Price = 100 * [( 1 - (1+0.08)^-20) / 0.08] + 1000 / (1+0.08)^20
Bond Price or Present value = $1196.362948 rounded off to $1196.36
The comparative balance sheets for Kingbird Corporation appear below:
KINGBIRD CORPORATION Comparative Balance Sheet
Assets 2022 2021
Cash $35,400 $33,600
Accounts receivable (net) 88,000 64,500
Prepaid insurance 29,300 19,200
Land 20,500 49,000
Equipment 81,500 69,500
Accumulated depreciation (15,800 ) (13,000 )
Total assets $238,900 $222,800
Liabilities and Stockholder's Equity Accounts payable $24,500 $8,100
Bonds payable 25,400 16,200
Common stock 148,000 120,000
Retained earnings 41,000 78,500
Total liabilities and stockholder's equity $238,900 $222,800
Additional information:
1. Net loss for 2022 is $13,000. Net sales for 2022 are $290,000.
2. Cash dividends of $24.800 were declared and paid in 2022.
3. Land was sold for cash at a loss of $3,500. This was the only land transaction during the year.
4. Equipment with a cost of $17,800 and accumulated depreciation of $10,900 was sold for $6,900 cash.
5. $12.900 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 $33,000.
Required:
Prepare a statement of cash flows for the year ended December 31, 2022 using the indirect method.
Warrants exercisable at $20 each to obtain 94000 shares of common stock were outstanding during a period when the average market price of the common stock was $25. Application of the treasury stock method for the assumed exercise of these warrants in computing diluted earnings per share will increase the weighted average number of outstanding shares by:__________
a. 18800.
b. 75200.
c. 94000.
d. 23500.
Answer: 18800
Explanation:
First and foremost, we have to calculate the outstanding common shares which will be:
= Number of shares / Market price × Warrants Exercisable
= (94000 / 25) × 20
= 75200 shares
Then, the increase in the weighted average number of outstanding shares will be:
= 94000 - 75200
= 18800
If most cartel members keep their agreement to cut back production: a. it's not profitable in the short run for another member to increase production. b. it's profitable in the short run for another member to increase production. c. cheating by another member won't be detected. d. the losses associated with cheating are internalized by the cheater.
Answer: b. it's profitable in the short run for another member to increase production.
Explanation:
This refers to an oligopolistic market where there are few producers of a good. These producers can come together to create a cartel that fixes prices for the goods and services they produce.
If they agree to cut back production, this will have the effect of increasing prices due to a reduction in supply. If a member decides to increase production, they would enjoy profits in the short term from the increased prices.
The other members would however respond by increasing production as well so those profits would stop towards the long run.
Dr. Bernanke argued two problems contributing to the financial crisis included:________.
A. banks reliance on long-term funding; and the increased use of non-standard mortgages such as Adjustable Rate Mortgages ARMS.
B. banks reliance on short term funding; and the increased use of non-standard mortgages such as Adjustable Rate Mortgages ARMS.
C. banks reliance on short term funding; and the increased use of non-standard mortgages such as fixed rate, 30-year mortgages.
D. banks reliance on long-term funding; and the increased use of non-standard mortgages such as fixed rate, 30-year mortgages.
Answer:
D. banks reliance on long term funding; and increased use of non-standard mortgages such as fixed rate, 30- year mortgages.
Explanation:
Dr. Bernanke argued that financial crisis is due to the banks involving in non standard mortgages which are fixed rate mortgages but they are not regulated. The bank provides loans and mortgages to people based on the standard regulations which need to be followed. They financial crisis took place when the mortgages were provided on non standard terms.
Tom got a 30 year fully amortizing FRM for $1,500,000 at 6%, with constant monthly payments. After 3 years of payments, rates fall and he can get a 27 year FRM at 5%, but he must pay 2 points and $1000 in closing costs to get the new loan. Think of the refinancing decision as an investment for Tom, he pays a fee now but saves money in the future in the form of lower payments. What is the annualized IRR of refinancing for Tom assuming he pays through maturity?
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
Note: In this question, Cash Flow table is used as well, which I have attached below. Please refer to that table as well.
Monthly payment for the 30 year FRM loan:
PV = 1,500,000; r (monthly interest rate) = 6%/12 = 0.5%; n (number of monthly payments) = 30*12 = 360
PMT (monthly payment) = [tex]\frac{r . PV}{1-(1+r)^{-n} }[/tex]
PMT (monthly payment) = = (0.5%*1,500,000)/(1 -(1+0.5%)^-360) = 8,993.26
Balance remaining after 8 years (if refinancing is not done):
PMT = 8,993.26; r = 0.5%; n = 360 - (8*12) = 264
PV = PMT*(1 - (1+r)^-n)/r = 8,993.26*(1 - (1+0.5%)^-264)/0.5%
PV = 1,316,585.31
Balance remaining after 3 years (if refinancing is done):
PMT = 8,993.26; r = 0.5%; n = 360 - (3*12) = 324
PV = PMT*(1 - (1+r)^-n)/r = 8,993.26*(1 - (1+0.5%)^-324)/0.5%
PV = 1,441,261.05
Cost of refinancing = 2%*remaining balance + 1,000 = (2%*1,441,261.05) + 1,000
Cost of refinancing = 29,825.22
Monthly payment (if refinancing is done):
PV = 1,441,261.05; r = 5%/12 = 0.4167%; n = 27*12 = 324
PMT = (1,441,261.05*0.4167%)/(1 -(1+0.4167%)^-324)
PMT = 8,114.86
Balance remaining after 5 years (after refinancing):
PMT = 8,114.86; r = 0.4167%; n = 22*12 = 264
PV = 8,114.86*(1-(1+0.4167%)^-264)/0.4167%
PV = 1,297,794.91
Note: Cash flow table is attached below.
Using financial calculator:
CF0 = -29,825.22;
CF1 = 878.40; N0 = 59 (5 years less one month);
CF2 = 19,668.80; N2 = 1, solve for IRR.
IRR = 2.69%
Hence,
Annual IRR = 2.69%*12 = 32.29%
Bamboo Consulting is a consulting firm owned and operated by Lisa Gooch. The following end-of-period spreadsheet was prepared for the year ended July 31, 20Y5:
Bamboo Consulting
End-of-Period Spreadsheet
For the Year Ended July 31, 20Y5
Unadjusted Trial Adjustments Adjusted Trial
Balance Balance
Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Cash 12,390 12,390
Accounts
Receivable 29,490 29,490
Supplies 3,130 (a) 2,620 510
Office
Equipment 23,890 23,890
Accumulated
Depreciation 3,270 (b) 1,560 4,830
Accounts Payable 7,960 7,960
Salaries Payable (c) 380 380
Lisa Gooch,
Capital 30,080 30,080
Lisa Gooch,
Drawing 3,830 3,830
Fees Earned 55,900 55,900
Salary Expense 22,120 (c) 380 22,500
Supplies Expense (a) 2,620 2,620
Depreciation Expense (b) 1,560 1,560
Miscellaneous Expense 2,360 2,360
97,210 97,210 4,560 4,560 99,150 99,150
Based on the preceding spreadsheet, prepare an income statement, statement of owner’s equity, and balance sheet for Bamboo Consulting.
CHART OF ACCOUNTS
Bamboo Consulting
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Office Equipment
15 Accumulated Depreciation
LIABILITIES
21 Accounts Payable
22 Salaries Payable
EQUITY
31 Lisa Gooch, Capital
32 Lisa Gooch, Drawing
33 Income Summary
REVENUE
41 Fees Earned
EXPENSES
51 Salary Expense
52 Supplies Expense
53 Depreciation Expense
54 Miscellaneous Expense
REVENUE
41 Fees Earned
EXPENSES
51 Salary Expense
52 Supplies Expense
53 Depreciation Expense
54 Miscellaneous ExpenseLabels
Current assets
Current liabilities
Expenses
For the Year Ended July 31, 2016
July 31, 2016
Property, plant, and equipment
Revenues
Amount Descriptions
Add withdrawals
Decrease in owner’s equity
Increase in owner’s equity
Less withdrawals
Lisa Gooch, capital
Lisa Gooch, capital, August 1, 2015
Lisa Gooch, capital, July 31, 2016
Net income
Net loss
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and owner’s equity
Total property, plant, and equipment
Total revenues
1. Prepare an income statement for the year ended July 31, 2016 for Bamboo Consulting.
2. Prepare a statement of owner’s equity for the year ended July 31, 2016 for Bamboo Consulting.
3. Prepare a balance sheet as of July 31, 2016 for Bamboo Consulting. Fixed assets must be entered in order according to account number.
Answer:
Bamboo Consulting
1. Income Statement for the year ended July 31, 2016:
Fees Earned $55,900
Salary Expense 22,500
Supplies Expense 2,620
Depreciation Expense 1,560
Miscellaneous Expense 2,360 29,040
Net income $26,860
2. Statement of Owner's Equity for the year ended July 31, 2016:
Capital $30,080
Net income 26,860
Drawing (3,830)
Equity balance $53,110
3. Balance Sheet as of July 31, 2016:
Cash $12,390
Accounts Receivable 29,490
Supplies 510 $42,390
Office Equipment 23,890
Accumulated Depreciation (4,830) $19,060
Total assets $61,450
Accounts Payable $7,960
Salaries Payable 380
Total liabilities $8,340
Owner's equity $53,110
Total liabilities and equity $61,450
Explanation:
a) Data and Calculations:
Bamboo Consulting
End-of-Period Spreadsheet
For the Year Ended July 31, 20Y5
Unadjusted Trial Adjustments Adjusted Trial
Balance Balance
Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Cash 12,390 12,390
Accounts
Receivable 29,490 29,490
Supplies 3,130 (a) 2,620 510
Office
Equipment 23,890 23,890
Accumulated
Depreciation 3,270 (b) 1,560 4,830
Accounts Payable 7,960 7,960
Salaries Payable (c) 380 380
Lisa Gooch,
Capital 30,080 30,080
Lisa Gooch,
Drawing 3,830 3,830
Fees Earned 55,900 55,900
Salary Expense 22,120 (c) 380 22,500
Supplies Expense (a) 2,620 2,620
Depreciation Expense (b) 1,560 1,560
Miscellaneous Expense 2,360 2,360
97,210 97,210 4,560 4,560 99,150 99,150
Adjusted Trial Balance
Account Title Dr. Cr.
Cash 12,390
Accounts Receivable 29,490
Supplies 510
Office Equipment 23,890
Accumulated Depreciation 4,830
Accounts Payable 7,960
Salaries Payable 380
Lisa Gooch, Capital 30,080
Lisa Gooch, Drawing 3,830
Fees Earned 55,900
Salary Expense 22,500
Supplies Expense 2,620
Depreciation Expense 1,560
Miscellaneous Expense 2,360
99,150 99,150
The first step of the financial planning process is to:
Answer:
Review Of Current Financial Situation
Explanation:
The first step in the financial planning process involves taking a detailed look into a person's current financial situation. This means examining a person's savings, income, debts and current living expenses.
Answer:
Creating and implementing a financial action plan..
Hope it helps:)
Dell has been aggressively cutting their days of inventory. In the third quarter of 2009, Dell reported $952 million of inventory, $10,663 million of sales and $12,896 million of cost of goods sold. How many days of inventory did Dell have in the third quarter of 2009
Answer:
27 days
Explanation:
The computation of the days of inventory is given below:
= 365 days ÷ inventory turnover ratio
= 365 days ÷ ($12,896 million ÷ $952 million)
= 365 days ÷ 13.55
= 27 days
We assume that the inventory i.e given in the question is average inventory
A ski chalet at Peak n' Peak now costs $250,000. Inflation is expected to cause this price to increase at 5 percent per year over the next 10 years before Chris and Julie retire from successful investment banking careers. How large an equal annual end-of-year deposit must be made into an account paying an annual rate of interest of 13 percent in order to buy the ski chalet upon retirement
Answer:
$22,108
Explanation:
The computation is shown below:
Required deposit each year (P) = FVA ÷ ([(1+rate of interest)^number of years-1]÷rate of interest)
= $407,224 ÷ (((1+13%)^10-1) ÷ 13%)
= $22,108
The $407,224 comes from
= $250,000 × (1+5%)^10
Larkspur, Inc. uses a perpetual inventory system. Data for product E2-D2 include the purchases shown below.Date Numer of Units Unit priceMay 7 46 $10July 28 36 15On June 1, Larkspur, Inc. sold 23 units, and on August 27, 36 more units. Calculate the average cost of the goods sold in the sale. (Round answers to 3 decimal places, e.g. 5.125.)
Answer:
Following are the solution to this question:
Explanation:
Calculating the cost of the product sold:
FIFO:
June 1: 23 units costing of [tex]\$ 10[/tex] each [tex]= \$ 230[/tex]
Aug 27: 23 units costing of [tex]\$ 10[/tex] each [tex]= 230[/tex]
13 units costing of [tex]\$ 15[/tex] each [tex]= 195[/tex]
[tex]\$425[/tex]
Total cost of product sold[tex]= \$655[/tex]
LIFO:
June 1: 23 units costing of [tex]\$ 10[/tex] each [tex]= \$ 230[/tex]
Aug 27: 36 units costing of [tex]\$15[/tex] each = 540
Total cost of product sold [tex]= \$ 770[/tex]
Average cost:
June 1: 23 units costing of [tex]\$ 10[/tex] each [tex]= \$ 230[/tex]
Aug 27: 36 units costing of [tex]\$13.051[/tex] each [tex]= \$469.836[/tex]
Total cost of product sold [tex]= \$699.836[/tex]
An elastic demand indicates that A. quantity demanded does not vary with changes in the price. B. relatively large changes in price are required to obtain a relatively small change in quantity demanded. C. relatively small changes in price are required to obtain a relatively large change in quantity demanded. D. relatively large changes in quantity demanded lead to relatively large changes in price.
Answer:
C. relatively small changes in price are required to obtain a relatively large change in quantity demanded.
Explanation:
An elastic demand indicates that relatively small changes in price are required to obtain a relatively large change in quantity demanded.
ME EXPLICA O BARINLY
Answer:
what lol
Explanation:
Acme Investors is considering the purchase of the undeveloped Baker Tract of land. It is currently zoned for agricultural use. If purchased, however, Acme must decide how to have the property rezoned for commercial use and then how to develop the site. Based on its market study, Acme has made estimates for the two uses that it deems possible, that is, office or retail. Based on its estimates, the land could be developed as follows:
Which would be the highest and best use of this site?
Office Retail
Rentable Square Feet 100,000 80,000
Rents per square foot $24 $30
Operating Expenses Ratio 40% 50%
Avg. Growth in NOI Per Year 3% 3%
Required Return (r) 13% 14%
Total Construction Cost
per square foot $100 $100
Using the information from above, but assuming the site is currently improved with an industrial building that generates $400,000 of NOI per year. Investors require a return of 10% for such properties and assume no growth in NO. It would require $50,000 to demolish the existing building/prepare the site for redevelopment. From your work in above, what is the highest and best use as vacant? What is the highest and best use as improved?
Answer:
Office
Explanation:
Calculation to determine Which would be the highest and best use of this site
The analysis for the Baker Tract is as follows: OFFICE RETAIL
Rent 2,400,000 2,400,000
(100,000*$24=2,400,000)
Less Expenses (960,000) (1,200,000)
(2,400,000*40%=960,000)
(2,400,000*50%=1,200,000)
Cash Flow 1,440,000 1,200,000
(2,400,000-960,000=$1,440,000)
(2,400,000-$1,200,000=$1,200,000)
Cap Rate 0.10 0.11
(13%-3%=0.10)
(14%-3%=0.11)
Property Value 14,400,000 10,909,090
(1,440,000/0.10=14,400,000)
(1,200,000/0.11=10,909,090)
Construction Cost (10,000,000) ( 8,000,000)
(100,000*100=10,000,000)
(80,000*100=8,000,000)
Residual 4,400,000 2,909,090
(14,400,000-10,000,000=4,400,000)
( 10,909,090-8,000,000=2,909,090)
Therefore Based on the above calculation OFFICE would be the highest and best use of this site reason been that OFFICE has the HIGHEST amount of $4,400,000 compare to retail which has $2,909,090.
FASB revenue recognition requirements require nonprofits to apply five steps to each type of exchange contract to determine when to recognize revenue. The first 4 steps are (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, and (4) allocate the transaction price to the performance obligations in the contract. What is the 5th step
Answer:
Recognize revenue when (or as) the entity satisfies a performance obligation
Explanation:
The known five steps in the revenue recognition process includes
1. Identifcation of the contract(s) with customers.
2. Identify the separate performance obligations in the contract.
3. Determine the transaction price.
4. Allocate the transaction price to the separate performance obligations.and
5. Recognize revenue when each performance obligation is satisfied.
Recognize revenue is important for an entity especially as it fulfill the performance obligation need through the process of transfer of a promised good or service to a customer. If an entity cannot fulfill a performance obligation need in the cost of time, the performance obligation is then fulfilled at a point in time.
When performance obligation is satisfied, there is a change in control. That is a control is transferred when the customer has the ability to direct the use of and obtain substantially all the remaining benefits from the asset or service. Control is also shows if the customer has the ability to prevent other companies from directing the use of, or receiving the benefit, from the asset or service.