Answer:
The effect of this is to add $328.22 to the net income.
Explanation:
The Days Sales Outstanding (DSO) can be calculated using the following formula:
DSO = (Accounts Receivable / Credit Sales) * 365 ................ (1)
This can now be determined using the following 4 steps:
Step 1: Calculation of Aziz Industries' current DSO (DSOa)
Using equation (1), we substitute the relevant values and solve as follows:
DSOa = (11,500 / 100,000) * 365
DSOa = 41.98 Days
Step 2: Calculation of the amount Accounts Receivable needs to be lowered to so that DSO will be 27 days
By this, we have:
y = the amount that the Accounts Receivable needs to be lowered to = Accounts receivable = ?
Sales = $100,000
DSO = industry average DSO = 27 days
Substitute the relevant values into equation (1) and solve y, we have:
27 = (y / 100,000) * 365
27 / 365 = y / 100,000
0.073972602739726 = y / 100,000
y = 0.073972602739726 * 100,000
y = $7,397.26
Step 3: Calculation of decrease in Accounts Receivable
Decrease in Accounts Receivable = Aziz Industries' current accounts receivable - y = $11,500 - $7,397.26 = $4,102.74
Step 4: Calculation of addition to net income which is the same as the interest earned
Addition to net income = Decrease in Accounts Receivable * Percentage earned on any cash freed-up by this change = $4,102.74 * 8% = $328.22
Therefore, the effect of this is to add $328.22 to the net income.
The Work-in-Process inventory account of a manufacturing firm shows a balance of $3,250 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $510 and $310 for materials, and charges of $410 and $670 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of:
Answer:
$1.25
Explanation:
With regards to the above and given that;
Direct material = $510 310
Direct labor = $410 $670
Manufacturing overhead?
Work in process = Direct material + Direct labor + manufacturing overhead
$3,250 = $820 + $1,080 + MOH
$3,250 - $1,900 = MOH
MOH = $1,350
Overhead rate = MOH/Direct labor hour
= $1,350/1080
= $1.25
Clarisa, an engineering manager, wants to purchase a resort accommodation to rent to skiers. She is considering the purchase of a three-bedroom lodge in upper Montana that will cost $250,000. The property in the area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices. If Clarisa spends an average of $500 per month for utilities and the investment increases at a rate of 2% per month, how long would it be before she could sell the property for $100,000 more than she has in
Answer:
18.5 months approximately
Explanation:
initial investment x (1 + appreciation rate)ⁿ = initial investment + $100,000 + ($500 x n)
$250,000 x (1 + 2%)ⁿ = $350,000 + $500n
1.02ⁿ = $350,000/$250,000 + $500n/$250,000
1.02ⁿ = 1.4 + 0.002n
I tried to solve it by trial and error:
50 months:
2.69 ≠ 1.5
40 months:
2.21 ≠ 1.48
30 months:
1.81 ≠ 1.46
20 months:
1.49 ≈ 1.44 ⇒ getting closer
18 months:
1.43 ≈ 1.44 ⇒ almost
18.5 months:
1.44 = 1.44 ✓
In order to get hired as an assembly line specialist, the applicant will have to show that they can perform their task in less than 5 minutes after 1000 tries. During the interview, the applicant was asked to perform their future job five times. The applicant was able to complete the task in 10.8 minutes and the company was to estimate their learning curve to be 90%. Given this information, how much time will the applicant take to perform the task a 1000th time
Answer:
The Applicant will take 3.78 minutes to perform the task a 1000th time.
Explanation:
The Learning curve is the graphical representation that determines that how much time someone takes to learn a special skill.
The time on the 1,000th applicant can be calculated as follow
[tex]T_{1000}[/tex] = [tex]T_{1}[/tex] x [tex]1000^{((log LCR/log2)}[/tex]
Where
[tex]T_{1}[/tex] = 10.8 minutes
LCR = Learning Curve Rate = 90% = 0.90
[tex]T_{1000}[/tex] = 10.8 minutes
Placing values in the formula
[tex]T_{1000}[/tex] = 10.8 minutes x [tex]1000^{((log 0.90/log2)}[/tex]
[tex]T_{1000}[/tex] = 10.8 minutes x [tex]1000^{(-0.152003093)}[/tex]
[tex]T_{1000}[/tex] = 10.8 minutes x 0.349937689
[tex]T_{1000}[/tex] = 3.779327044 minutes
[tex]T_{1000}[/tex] = 3.78 minutes
Seybert Systems accounts for its investment in Wang Engineering bonds as available-for-sale. Seybert's balance in accumulated other comprehensive income with respect to the Wang investment is a credit balance of $24,000, and Seybert reports the investment as $140,000 on its balance sheet. Seybert purchased the Wang investment for (ignore taxes): __________
Answer: $116000
Explanation:
From the question, we are given the following information:
Credit balance = $24,000
Investment = $140,000
The amount that Seybert purchased the Wang investment will be calculated as:
= Reported value of investment - Unrealized gain
= $140,000 - $24,000
= $116,000
CalMark is a privately held company, so there is no information about beta available. However, a company in the same business with a debt to equity ratio the same as that of CalMark is publicly traded and has a beta which is two times that of the market. If the risk free rate is 4%, and the market risk premium is 5%, what is the estimated cost of existing equity for CalMark
Answer:
r - Calmark = 14%
Explanation:
Based on the comparative company analysis and using the CAPM we can calculate the required rate of return for CalMark. The comparative company analysis means to use the companies similar to the subject company to assume various ratios and factor about the subject company.
The formula to calculate the cost of equity which is also known as the required rate of return (r) is,
r = rRF + Beta * rpM
Where,
rRF is the risk free raterpM is the market risk premiumThe beta for market is always equal to 1. So a beta twice of the market will be 2.
r - Calmark = 4% + 2 * 5%
r - Calmark = 14%
People who agreed with the argument made in the speech would most likely have recommended which of the following solutions? Separate but equal segregated facilities to increase job opportunities for white workers Separate but equal segregated facilities to increase job opportunities for white workers A Continuation of the gold standard as the basis for money Continuation of the gold standard as the basis for money B Reduced government involvement in the economy in order to create more competition Reduced government involvement in the economy in order to create more competition C A stronger government role in the economic system A stronger government role in the economic system D
Answer:
A stronger government role in the economic system.
Explanation:
A stronger government role in the economic system will enable the increase of job opportunities for white workers. The government will intervene in the organizations and persuade them to hire and provide work to white workers perhaps a quota can be established or a general advice to all the organizations to increase the job opportunities for the white workers.
Taco Ranch uses a process cost system and the FIFO cost flow assumption. Production begins in the crafting department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On November 1st, the beginning work in process inventory consisted of 10,000 units which were 60% complete and had a cost of $190,000, $100,000 of which were material costs. During November, the following occured:
Materials added $225,000
Conversion costs incurred $45,000
Units completed and transferred out in November $40,000
Units in ending work in process November 30 (20% complete) $25,000
1. What are the equivalent units of production for materials and conversion costs in the Crafting Department for the month of November?
2. What are the costs assigned to the ending work in process inventory on November 30?
3. What are the costs assigned to units completed and transferred out during November?
Answer:
no puedo tengo fuboll
Explanation:
Taco Ranch uses a process cost system and the FIFO cost flow assumption.
Equivalent Units for Materials:
Units completed and transferred out during November = 40,000 units
Units in ending work in process (20% complete)
= 25,000 units × 20% = 5,000 equivalent units
Total equivalent units for materials = Units completed and transferred out + Units in ending work in process
Total equivalent units for materials
= 40,000 units + 5,000 equivalent units
Total equivalent units for materials = 45,000 equivalent units
Equivalent Units for Conversion Costs:
Since conversion costs are incurred uniformly throughout the process, the equivalent units for conversion costs are the same as the total equivalent units for materials, which is 45,000 equivalent units.
Costs Assigned to Ending Work in Process Inventory on November 30:
To determine the costs assigned to the ending work in process inventory on November 30, we need to calculate the cost per equivalent unit for materials and conversion costs.
Cost per Equivalent Unit for Materials = Total material costs / Total equivalent units for materials
Cost per Equivalent Unit for Materials = $100,000 / 45,000 equivalent units
Cost per Equivalent Unit for Materials = $2.22 per equivalent unit (rounded to two decimal places)
Cost per Equivalent Unit for Conversion Costs = Total conversion costs / Total equivalent units for conversion costs
Cost per Equivalent Unit for Conversion Costs = $45,000 / 45,000 equivalent units
Cost per Equivalent Unit for Conversion Costs = $1 per equivalent unit
Now, we can calculate the cost assigned to the ending work in process inventory:
Ending Work in Process Inventory Cost = Cost per Equivalent Unit for Materials × Equivalent Units in Ending Work in Process
Ending Work in Process Inventory Cost = $2.22 × 5,000 equivalent units
Ending Work in Process Inventory Cost = $11,100
Costs Assigned to Units Completed and Transferred Out During November:
The costs assigned to units completed and transferred out during November include both material and conversion costs.
Total cost per equivalent unit = Cost per Equivalent Unit for Materials + Cost per Equivalent Unit for Conversion Costs
Total cost per equivalent unit = $2.22 + $1
Total cost per equivalent unit = $3.22
Cost of Units Completed and Transferred Out = Total cost per equivalent unit × Units completed and transferred out during November
Cost of Units Completed and Transferred Out = $3.22 × 40,000 units
Cost of Units Completed and Transferred Out = $128,800
Therefore, the costs assigned to the ending work in process inventory on November 30 is $11,100 and the costs assigned to units completed and transferred out during November is $128,800.
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Calculate the consumer surplus in the market for gasoline if the market price is $3.50. Price ($ per gallon) Quantity of gasoline (millions of gallons) 0 40 80 120 160 200 240 280 320 360 400 440 480 520 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 Demand Price Consumer surplus
Answer:
The consumer surplus in the market for gasoline is $250 million
Explanation:
Consuemr Surplus
It is the difference between the consumer is willing to pay for the commodity and the actual market price.
The consumer surplus can be calculated as follow
Consumer Surplus = 0.50 x ( Maximum Price - Market Price ) x Quantity
Where
Maximum Price = $6.00
Market Price = $3.50
Quantity = 200 million gallons
Placing values in the formula
Consumer Surplus = 0.50 x ( $6.00 - $3.50 ) x 200
Consumer Surplus = $250 million
Note: The graph in the question was missing, it is attached for your reference.
Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued $25,000,000 of five-year, 7% bonds, with interest payable semiannually, at a market (effective) interest rate of 9%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. $fill in the blank 1
Answer:
Bond Price or Present value = $23021820.4557 rounded off to $23021820
Explanation:
To calculate the quote/price of the bond today, the present value, we will use the formula for the price of the bond. As the bond is a semi annual bond, the semi coupon payment, semi annual number of periods and semi annual YTM will be,
Coupon Payment (C) = 25000000 * 0.07 * 6/12 = $875000
Total periods (n) = 5 * 2 = 10
r or YTM = 0.09 * 6/12 = 0.045 or 4.5%
The formula to calculate the price of the bonds today is attached.
Bond Price = 875000 * [( 1 - (1+0.045)^-10) / 0.045] +
25000000 / (1+0.045)^10
Bond Price or Present value = $23021820.4557 rounded off to $23021820
The following information pertains to Wildhorse Company.
1. Cash balance per books, August 31, $7,424.
2. Cash balance per bank, August 31, $7,388.
3. Outstanding checks, August 31, $709.
4. August bank service charge not recorded by the depositor $61.
5. Deposits in transit, August 31, $3,760.
In addition, $3,076 collected for Wildhorse Company in August by the bank through electronic funds transfer. The accounts receivable collection has not been recorded Wildhorse Company.
Required:
Prepare a bank reconciliation at August 31, 2022
Answer:
Adjusted cash balance per bank $10,439
Adjusted cash balance per book $10,439
Explanation:
Preparation of a bank reconciliation at August 31, 2022
Cash balance per bank statement $7,388
Add Deposit in transit $3,760
Less Outstanding check $709
Adjusted cash balance per bank $10,439
($7,388+$3,760-$709)
Cash balance per book $7,424
Add collection of electronic fund $3,076
Less bank service charge $61
Adjusted cash balance per book $10,439
($7,424+$3,076-$61)
Interwest receives government funding and that funding is tied to the accuracy of the reports put out by its information system. The CFO, Singh, is concerned about whether the employees are properly incentivized to input the data accurately. So she enlists the help of the CEO, Manzoni, to plan a retreat in which she highlighted the importance of proper data entry to the 10 hospital administrators that are in charge of running the hospitals. Six months later the data accuracy problems are as bad as they ever were. Manzoni needs help, what do you recommend? 1. What are the potential sources of the problems? 2. What information would you want to analyze? 3. What actions might you recommend to increase the accuracy of data entry? 4. How does your view of behavior affect how you might address this consulting assignment? Economic concepts from Chapter 1 that you could integrate into your response: Organizational Architecture and Incentives. Economic concepts from Chapter 2 that you could integrate into your response: (a) Marginal Analysis, (b) Opportunity Cost, (c) Alternative Models of Behavior, (d) The Economic Model, and (e) Utility.
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
1.
a) Ambiguity in data entry.
b) Inaccurate reporting and planning are lacking.
c) Teamwork inefficiency.
d) A lack of a well-organized data entry system.
e) The lack of access to better patient care.
2.
Whether or not resources are being adequately used, as well as the cause of worker inefficiency, which may include their working conditions and wage package. The problem may have been exacerbated by poor management and a lack of flexibility and organization.
3.
a) Appointing more competent and effective employees and dismissing inefficient ones after adequate training.
b) Introducing incentive programs for overtime and high-performing employees.
c) Oversight of data entry on a regular basis, including proper auditing.
d) A separate department and personnel should be formed for data entry.
e) Development of cutting-edge technologies to help in real-time data entry.
f) Recruiting workers on a trial basis and choosing the most efficient.
g) More funds should be dedicated to infrastructure and treatment facilities development.
h) Informal Organization is introduced.
When people communicate with one another, they form a network of interpersonal relationships that determines how they function together in practice. This will improve teamwork as well as the relationship between management and administrators, lowering tensions and promoting harmony.
4.
Rather than firing incompetent employees, we should provide them with adequate training in data entry into the company's management information system.
The state of a non-profit organization can be improved by proper preparation, organizing, managing, and distributing work load.
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2021, the company transferred $800,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 90% of the factored amount and retains 10%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 4% fee (4% of the total factored amount). Samson estimates the fair value of the last 10% of its receivables to be $60,000.
Required:
Prepare the journal entry for Samson Wholesale Beverage for the transfer of accounts receivable on April 30, assuming the sale criteria are met.
Answer:
Debit Cash for $720,000
Debit Receivable from factor for $28,000
Debit Loss on sale of receivables for $52,000
Credit Accounts receivable for $800,000
Explanation:
From the question, the following can first be calculated:
Cash = Accounts receivable * Percentage remitted by Milpitas = $800,000 * 90% = $720,000
Receivable from factor = Estimated fair value of the last 10% of receivables - 4% of the total factored amount = $60,000 - (4% * $800,000) = $60,000 - $32,000 = $28,000
Loss on sale of receivables = Accounts receivable - Cash - Receivable from factor = $800,000 - $720,000 - $28,000 = $52,000
The journal entry for Samson Wholesale Beverage for the transfer of accounts receivable on April 30, assuming the sale criteria are met will look as follows:
General Ledger Debit ($) Credit ($)
Cash 720,000
Receivable from factor 28,000
Loss on sale of receivables 52,000
Accounts receivable 800,000
(To record the transfer of Accounts receivable.)
Roget Factory has budgeted factory overhead for the year at $15,500,000. It plans to produce 2,000,000 units of product. Budgeted direct labor hours are 1,050,000, and budgeted machine hours are 750,000. Using a single plantwide factory overhead rate based on direct labor hours, the factory overhead rate for the year is
Answer:
$14,76
Explanation:
Using a single plantwide factory overhead rate based on direct labor hours, the factory overhead rate for the year is $14,76.
Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 Inventory 52 units at $79 10 Sale 35 units 15 Purchase 27 units at $83 20 Sale 25 units 24 Sale 13 units 30 Purchase 39 units at $86 The business maintains a perpetual inventory system, costing by the first-in, first-out method.
Determine the cost of the goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated.
Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column and LOWER unit cost first in the Inventory.
Answer:
November 1 Inventory 52 units at $79
November 10 Sale 35 units
COGS = 35 x $79 = $2,765Inventory balance = 17 x $79 = $1,343November 15 Purchase 27 units at $83
November 20 Sale 25 units
COGS = (17 x $79) + (3 x $83) = $1,592Inventory balance = (24 x $83) = $1,992November 24 Sale 13 units
COGS = 13 x $83 = $1,079Inventory balance = 11 x $83 = $913November 30 Purchase 39 units at $86
Inventory balance = $913 + (39 x $86) = $4,26711. Purchased a parcel of land on March 1, 2020 for $950,000 by paying $490,000 in cash and signing a short-term note payable with the seller for $460,000. You must repay the $460,000 in exactly one year on March 1, 2021. You agree to pay the seller 5 percent interest (annual rate) on a quarterly basis (June 1, September 1, December 1, 2020, and March 1, 2021). [Adjusting Entry Required]
Answer:
Adjusting Entry:
June 1:
Debit Interest Expense $5,750
Credit Cash $5,750
To record the interest expense.
September 1
Debit Interest Expense $5,750
Credit Cash $5,750
To record the interest expense.
December 1, 2020
Debit Interest Expense $5,750
Credit Cash $5,750
To record the interest expense.
March 1, 2021:
Debit Short-term Note Payable $460,000
Debit Interest Expense $5,750
Credit Cash $465,750
To record the full settlement on account.
Explanation:
a) Data and Calculations:
Short-term note payable = $460,000
Interest expense = $5,750 ($460,000 * 5% * 1/4)
Elite Lawn & Plowing (EL&P) is a lawn and snow plowing service with both residential and commercial clients. The owner believes that the commercial sector has more growth opportunities and is considering dropping the residential service.
Twenty employees worked a total of 41,000 hours last year, 30,000 on residential jobs and 11,000 on commercial jobs. Wages were $16 per hour for all work done. Any materials used are included in overhead as supplies. All overhead is allocated on the basis of labor-hours worked, which is also the basis for customer charges. Because of increased competition for commercial accounts,EL&P can charge $60 per hour for residential work, but only $45 per hour for commercial work.
If overhead for the year was $205,000, what were the profits of the residential and commercial services using labor-hours as the allocation base?
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 205,000 / 41,000
Predetermined manufacturing overhead rate= $5 per direct labor hour
Now, we can calculate the profit of each service:
Residential:
Revenue= 30,000*60= 1,800,000
Direct labor costs= 30,000*16= (480,000)
Overhead= 5*30,000= (150,000)
Gross profit= $1,170,000
Commercial:
Revenue= 11,000*45= 495,000
Direct labor costs= 11,000*16= (176,000)
Overhead= 5*11,000= (55,000)
Gross profit= $264,000
The market equilibrium quantity without the $1.50 excise tax is ______________ units. The market equilibrium quantity with the $1.50 excise tax is ______________ units. The change in equilibrium quantity due to the $1.50 excise tax is ______________ units. (Note: Red colored supply curve should be Qs with no tax and Green supply curve is Qs with tax. Error below in labeling)
Answer:
Equilibrium quantity without excise tax is 130 units.
Equilibrium quantity with excise tax is 110 units.
The change in equilibrium quantity is 20 units decrease due to excise tax.
Explanation:
The quantity demanded without tax is 130 units because this is equilibrium point where quantity supplied equals to quantity demanded. The quantity demanded with tax is 110 units because the price will increase by $1.50 due to excise tax. The new price would be $4.50 after excise tax so the quantity will be declined to 110 units.
During the month, the Supplies (asset) account was debited $2,000 for supplies purchased. The cost of supplies used during the month was $1,250. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month. An insurance premium of $440 was paid for the coming year. Prepaid Insurance was debited. Wages of $3,400 were paid for the current month. Interest revenue of $270 was received for the current month. Accrued $620 of commissions payable to sales staff for the current month. Accrued $130 of interest expense at the end of the month. Received $2,675 on accounts receivable accrued at the end of the prior month. Purchased $700 of merchandise inventory from a supplier on account. Paid $130 of interest expense for the month. Accrued $870 of wages at the end of the current month. Paid $590 of accounts payable.
Answer:
Journal Entries:
1. Debit Supplies Expense $1,250
Credit Supplies $1,250
To record supplies expense for the month.
2. Debit Prepaid Insurance $440
Credit Cash $440
To record insurance prepaid.
Debit Insurance Expense $37
Credit Prepaid Insurance $37
To record insurance expense for the month.
3. Debit Wages Expense $3,400
Credit Cash Cash $3,400
To record wages paid.
4. Debit Sales Commissions Expense $620
Credit Sales Commission Payable $620
To record the sales commission expense.
5. Debit Interest Expense $130
Credit Interest Payable $130
To record the interest expense.
6. Debit Cash $2,675
Credit Accounts Receivable $2,675
To record the receipt on account.
7. Debit Inventory $700
Credit Accounts Payable $700
To record the purchase of inventory on account.
8. Debit Interest Payable $130
Credit Cash $130
To record the payment of interest.
9. Debit Wages Expense $870
Credit Wages Payable $870
To record accrued wages expense.
10. Debit Accounts Payable $590
Credit Cash $590
To record payment on account.
Explanation:
a) Data and Analysis:
1. Supplies Expense $1,250 Supplies $1,250
2. Prepaid Insurance $440 Cash $440
Insurance Expense $37 ($440/12)
Prepaid Insurance $37
3. Wages Expense $3,400 Cash $3,400
4. Sales Commissions Expense $620 Sales Commission Payable $620
5. Interest Expense $130 Interest Payable $130
6. Cash $2,675 Accounts Receivable $2,675
7. Inventory $700 Accounts Payable $700
8. Interest Payable $130 Cash $130
9. Wages Expense $870 Wages Payable $870
10. Accounts Payable $590 Cash $590
A postretirement asset is computed as the excess of the expected postretirement benefit obligation over the fair value of plan assets. fair value of plan assets over the accumulated postretirement benefit obligation. accumulated postretirement benefit obligation over the fair value of plan assets. accumulated postretirement benefit obligation over the fair value of plan assets, but not vice versa.
Answer:
fair value of plan assets over the accumulated postretirement benefit obligation
Explanation:
Petty Cash Fund Entries Journalize the entries to record the following: Check is issued to establish a petty cash fund of $1,200. The amount of cash in the petty cash fund is now $396. Check is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $466; miscellaneous selling expense, $193; miscellaneous administrative expense, $121. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $1,200, record the discrepancy in the cash short and over account.) a. Journalize the entry to establish the petty cash fund. fill in the blank a41770059faa020_2 fill in the blank a41770059faa020_4 b. Journalize the entry to replenish the petty cash fund. For a compound transaction, if an amount box does not require an entry, leave it blank. fill in the blank e53a56fc003ffc3_2 fill in the blank e53a56fc003ffc3_3 fill in the blank e53a56fc003ffc3_5 fill in the blank e53a56fc003ffc3_6 fill in the blank e53a56fc003ffc3_8 fill in the blank e53a56fc003ffc3_9 fill in the blank e53a56fc003ffc3_11 fill in the blank e53a56fc003ffc3_12 fill in the blank e53a56fc003ffc3_14 fill in the blank e53a56fc003ffc3_15 Check My Work
Answer:
Dr Petty cash fund 1,200
Cr Cash 1,200
Dr Office supplies expenses 466
Dr Miscellaneous selling expenses 193
Dr Miscellaneous administrative expenses 121
Dr Cash short and over 24
Cr Petty cash fund 804
Dr Petty cash fund 804
Cr Cash 804
the balance in the petty cash fund is $1,2000 again
explain the various functions of an entrepreneur
Aggies Candle Factory has recently been awarded a new contract with a large retailor in Doylestown. Demand for the candles is 25,0000 which a larger order than the company has ever handled before. They have called a business strategy meeting to ensure success of this project.; the Operations Manager has presented two different manufacturing options for consideration by the board:
Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.
Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
Which option should the board select and why?
Answer: Option A
Explanation:
From the question, the demand given is 250,000
For Option A,
Fixed cost = $25000
Variable cost = $0.1 per candle
Total cost = Fixed cost + Variable cost
Total cost = $25000 + ($0.1 × 250,000)
= $25,000 + $25,000
= $50,000
For Option B,
Fixed cost = $10000,
Variable cost = $0.5 per candle
Total cost = Fixed cost + Variable cost
Total cost = $10000 + ($0.5 × 250,000)
= $10,000 + $125,000
= $135,000
Therefore, the board should select option A as the total cost is cheaper than option B.
Loanstar had 150 units in beginning inventory before starting 950 units and completing 900 units. The beginning work in process inventory consisted of $2,000 in materials and $4,000 in conversion costs before $7,900 of materials and $13,280 of conversion costs were added during the month. The ending WIP inventory was 100% complete with regard to materials and 30% complete with regard to conversion costs. Use the above information to complete a production cost report. Enter all amount as positive values.
Answer:
Loanstar
Production Report:
Units Materials Conversion Total
Beginning WIP 150 $2,000 $4,000 $6,000
Started 950 7,900 13,280 21,180
Total 1,100 $9,900 $17,280 $27,180
Completed 900 900 900
Ending WIP 200 200 (100%) 60 (30%)
Total equivalent units 1,100 960
Cost per equivalent unit $9 $18
Cost assigned to:
Units completed $8,100 $16,200 $24,300
Ending WIP 1,800 1,080 2,880
Total cost of production $9,900 $17,280 $27,180
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Beginning WIP 150 $2,000 $4,000 $6,000
Started 950 7,900 13,280 21,180
Total 1,100 $9,900 $17,280 $27,180
Completed 900 900 900
Ending WIP 200 200 (100%) 60 (30%)
Total equivalent units 1,100 960
Cost per equivalent unit $9 $18
Cost assigned to:
Units completed $8,100 $16,200 $24,300
Ending WIP 1,800 1,080 2,880
Total cost of production $9,900 $17,280 $27,180
Determinants of Interest Rate for Individual Securities The Wall Street Journal reports that the rate on 3-year Treasury securities is 8.30 percent, and the 6-year Treasury rate is 8.45 percent. From discussions with your broker, you have determined that expected inflation premium is 3.70 percent next year, 3.95 percent in Year 2, and 4.15 percent in Year 3 and beyond. Further, you expect that real interest rates will be 4.10 percent annually for the foreseeable future. What is the maturity risk premium on the 6-year Treasury security
Answer:
20%
Explanation:
Calculation for What is the maturity risk premium on the 6-year Treasury security
Maturity risk premium=
8.45% = 4.15% + 4.10% + MP
MP = 8.45% − (4.15% + 4.10%)
MP=8.45%-8.25%
MP=0.20*100
MP=20%
Therefore the maturity risk premium on the 6-year Treasury security will be 20%
Revenue from gas wells that have been in production for at least 5 years tends to follow a decreasing geometric gradient. One particular rights holder received royalties of $4000 per year for years 1 through 6; however, beginning in year 7, income decreased by 15% per year each year through year 14. Calculate the future value in year 14 of the royalty income from the wells provided all of it was invested at 10% per year.
Answer:
Future value in year 14 of the royalty income is $91,603.32.
Explanation:
Note: See the attached excel for the calculation of the future value in year 14 of the royalty income from the wells.
In attached excel file, the royalties received per year from year 7 is calculated using the following formula:
Current Year Royalties Received = Previous Year Royalties Receive * (100% - Yearly Decreasing Rate) = Previous Year Royalties Receive * (100% - 15%).
From the attached excel file, future value in year 14 of the royalty income (in bold bold red color) is $91,603.32.
The income statement of Whitlock Company is presented here.
Whitlock Company Income Statement For the Year Ended November 30, 2020
Sales revenue $7,700,000
Cost of goods sold
Beginning inventory $1,900,000
Purchases 4,400,000
Goods available for sale 6,300,000
Ending inventory 1,400,000
Total cost of goods sold 4,900,000
Gross profit 2,800,000
Operating expenses 1,150,000
Net income $1,650,000
Additional information:
a. Accounts receivable increased $200,000 during the year, and inventory decreased $500,000.
b. Prepaid expenses increased $150,000 during the year.
c. Accounts payable to suppliers of merchandise decreased $340,000 during the year.
d. Accrued expenses payable decreased $100,000 during the year.
e. Operating expenses include depreciation expense of $70,000.
Required:
Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2020, for Whitlock Company, using the indirect method.
Answer:
$1,130,000
Explanation:
Preparation of the operating activities section of the statement of cash flows for the year ended November 30, 2020, for Whitlock Company,
Cash flows from operating activities
Net Income $1,650,000
Adjustments to reconcile net income to net cashProvided by operating activities:
Add Depreciation expense $70,000
Add Loss on disposal of equipmentIncrease in accounts receivable $200,000
Less Increase in inventory($500,000)
Add Decrease in prepaid expenses------Increase in prepaid expenses $150,000
Less Decrease in accounts payable($340,000)
Less Increase in accrued exp payable($100,000)
Net cash provided by operating activities $1,130,000
Therefore the operating activities section of the statement of cash flows for the year ended November 30, 2020, for Whitlock Company is $1,130,000
accrual basis financial statements every June 30 and December 31. On 1/1/2001 the company issued bonds to the public. The bonds are due at the end of 20 years, on 12/31/2020. The face value of the bonds is $100,000 and the annual coupon rate is 12%. Coupon payments are made to the bondholders semi-annually every June 30 and December 31, beginning 6/30/2001. The bonds were issued to yield 10% annual rate. You can use our present value tables presented in class, Tables 2 and 4. What is the book value of Bonds Payable on 1/1/2001
Answer:
$85,553
Explanation:
January 1, 2021
Dr Cash 114.963
Cr Bonds payable 100,000
Cr Premium on bonds payable 14,963
market price:
$100,000 / (1 + 5%)⁴⁰ = $14,205
$6,000 x 19.793 (PVIFA, 5%, 40 periods) = $100,758
market price = $114,963
amortization of bond premium = ($114,963 x 5%) - $6,000 = -$252
amortization of bond premium = ($114,711 x 5%) - $6,000 = -$264
carrying value = $100,000 - $14,447 = $85,553
A _____ is an organization that provides online- and telephone-based services to book reservations for independent hotels.
consumer reservation system
global distribution system
hotel-representative firm
limited reservation system
Answer:
consumer reservation system
Explanation:
This year Don and his son purchased real estate for an investment. The price of the property was $630,000, and the title named Don and his son as joint tenants with the right of survivorship. Don provided $358,000 of the purchase price and his son provided the remaining $272,000. Has Don made a taxable gift and, if so, in what amount
Answer:
$28,000
Explanation:
Calculation for Don taxable gift amount
Taxable gift amount=[$358,000 − ($630,000)/2] − $15,000
Taxable gift amount=[$358,000 −$315,000] − $15,000
Taxable gift amount=$43,000-$15,000
Taxable gift amount=$28,000
Therefore Don has made a taxable gift of the amount of $28,000
E7.5 (LO 2) (Recording Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $90, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. Instructions a. Prepare journal entries on the Arnold Company books to record all the events noted above under each of the following bases. 1. Sales and receivables are entered at gross selling price. 2. Sales and receivables are entered at net of cash discounts. b. Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29.