Answer:
1) See the attached excel file for the analysis of the possible operating income for Classic Limo, Inc.
2) The scenario with the highest operating profit $280,500 which is Excellent with $40 Contribution Margin and 10,500 Numbers of Customers.
Explanation:
1) Using the above information, construct an Excel spreadsheet to prepare an analysis of the possible operating income for Classic Limo, Inc.
Note: See the attached excel file for the analysis of the possible operating income for Classic Limo, Inc.
2) If you were manager of Classic Limo, Inc. and had to choose only one budget scenario to use for planning for the year, which one of the nine scenarios would you choose?
The scenario that would be chosen is the scenario with the highest operating profit $280,500 which is Excellent with $40 Contribution Margin and 10,500 Numbers of Customers.
What is strategic relationship management?
O A. Avoiding conflicts between direct stakeholders and indirect
stakeholders
O B. Building and maintaining ongoing contact between parties that is
beneficial to both
O C. Managing change processes to achieve strategic growth for a
profit-seeking organization
O D. Ending relationships between parties that have conflicting needs
and interests
Answer:
its B
Explanation:
Which best explains why banks consider interest on loans to be important?
Answer:
what are the options as answers?
Explanation:
"Which of the following is true? Airfreight A. has lower transporting rates than trucks. B. efficiently delivers all types of goods. C. serves many more locations than trucks. D. is best for goods that are heavy relative to their sales value, such as iron ore. E. can help reduce inventory costs."
Answer:
E. can help reduce inventory costs.
Explanation:
Airfreight can be defined as the transportation or movement of goods from one location to another through the air and use of shipping containers.
A shipping container refers to a metal container made from steel and having the ability or strength to withstand all external factors during shipment or storage of materials. It is an essential part of transportation of goods or materials from one location to another, thereby boosting trade between countries.
The various types of shipping containers are, dry storage container, open-side storage container, ISO Reefer container, flat rack container, tunnel container, open top container, double doors container, thermal containers, intermodal freight container etc.
An inventory cost can be defined as all costs such as carrying cost, stock out (shortage) cost and ordering cost that are associated with the procurement, holding (storage) and management (handling) of inventory.
Generally, airfreight can help to reduce the total logistics cost or inventory cost since it's faster, large and devoid of various impediments when compared with other forms of transportation.
Hence, the true statement about airfreight is that it can help reduce inventory costs.
This year Randy paid $28,900 of interest on his residence. (Randy borrowed $462,000 to buy his residence, and it is currently worth $512,000.) Randy also paid $2,800 of interest on his car loan and $4,650 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances
Answer:
a. Interest Deductible = $31,100
b. Interest Deductible = $28,900
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
This year Randy paid $28,900 of interest on his residence. (Randy borrowed $462,000 to buy his residence, and it is currently worth $512,000.) Randy also paid $2,800 of interest on his car loan and $4,650 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances?
a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.
Interest Deductible $.......
b. Randy had no investment income this year, and his AGI is $75,000.
Interest Deducttible $.......
The explanation of the anwer is now given as follows:
a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.
Randy may choose to deduct the interest of $28,900 on his residence as an itemized deduction.
The $2,800 of interest on his car loan is a nondeductible personal interest.
The $2,200 interest income received can be regarded as an investment income.
The $4,500 margin interest to his stockbroke is likely investment interest. But since Randy has only $2,200 interest income, his deduction is limited to the $2,200.
Therefore, we have:
Interest Deductible = Interest on his residence + $2,200 = $28,900 + $2,200 = $31,100
b. Randy had no investment income this year, and his AGI is $75,000.
Since there is no investment income, Randy can only dedcut the interest of $28,900 on his residence based on the explanation in part a above.
Therefore, we have:
Interest Deductible = $28,900
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $341,900 and direct labor hours would be 48,900. Actual manufacturing overhead costs incurred were $307,800, and actual direct labor hours were 52,800. What is the predetermined overhead rate per direct labor hour
Answer:
See below
Explanation:
With regards to the above, the predetermined overhead rate is computed below.
Predetermined overhead rate = Estimated factory overhead cost / Estimated direct labor hours
Given that;
Estimated factory overhead cost = $341,900
Estimated direct labor hours = 48,900
Therefore,
Predetermined overhead rate per direct labor hour
= $341,000 / 48,900
= $6.97 per direct labor hour
Problem 12-04A The income statement of Kingbird, Inc. is presented here. Kingbird, Inc. Income Statement For the Year Ended November 30, 2020 Sales revenue $7,465,900 Cost of goods sold Beginning inventory $1,868,500 Purchases 4,450,600 Goods available for sale 6,319,100 Ending inventory 1,331,800 Total cost of goods sold 4,987,300 Gross profit 2,478,600 Operating expenses 1,120,500 Net income $1,358,100 Additional information: 1. Accounts receivable increased $205,900 during the year, and inventory decreased $536,700. 2. Prepaid expenses increased $179,800 during the year. 3. Accounts payable to suppliers of merchandise decreased $345,700 during the year. 4. Accrued expenses payable decreased $105,800 during the year. 5. Operating expenses include depreciation expense of $95,300. Prepare the operating activities section of the statement of cash flows using the direct method
Answer:
Cash Flow From Operating Activities
Cash Receipt from Customers $7,260,000
Cash Paid to Suppliers and Employees ($6,294,700)
Cash Provided by Operating Activities $965,300
Explanation:
Step 1 : Cash Paid to Suppliers and Employees Calculation
Cost of goods sold $4,987,300
Add Operating expenses $1,120,500
Total $6,107,800
Adjustments :
Depreciation expense $95,300
Decrease in Inventory ($536,700)
Increase in Prepaid Expenses $179,800
Decrease in Accounts Payable $345,700
Decrease in Accrued Expense Payable $105,800
Cash Paid to Suppliers and Employees $6,294,700
Step 2 : Cash Receipt from Customers Calculation
Sales revenue $7,465,900
Less Increase in Accounts receivable ($205,900)
Cash Receipt from Customers $7,260,000
Oil Services Corp. reports the following EPS data in its 2017 annual report (in million except per share data). Net income $1,827 Earnings per share: Basic $1.56 Diluted $1.54 Weighted average shares outstanding: Basic 1,172 How many weighted average shares were dilutive in 2017
Answer:
15.2million dilutive shares
Explanation:
Calculation to determine How many weighted average shares were dilutive in 2017.
First step is to calculate the Basic EPS using this formula
Basic EPS= Net income -Basic
Let plug in the formula
Basic EPS= $1,827 /$1.56
Basic EPS=$1,171.2 million
Second step is to calculate the Diluted EPS
Diluted EPS =$1,827 million / $1.54
Diluted EPS = $1,186.4 million.
Now let calculate How many weighted average shares were dilutive in 2017
2017 Diluted weighted average=$1,186.4 million - $1,171.2 million.
2017 Diluted weighted average= 15.2million dilutive shares
Therefore How many weighted average shares were dilutive in 2017 is 15.2 million dilutive shares
Amber Company had $153,200 of net income in 2016 when the selling price per unit was $153, the variable costs per unit were $93, and the fixed costs were $574,100. Management expects per unit data and total fixed costs to remain the same in 2017. The president of Naylor Company is under pressure from stockholders to increase net income by $62,200 in 2017.
a) Compute the number of units sold in 2016.
b) Compute the number of units that would have to be sold in 2017 to reach the stockholders' desired profit level.
c) Assume that naylor company sells the same number of units in 2017 as it did in 2016. What would the selling price have to be in order to reacch the stockholders' desired profit level?
Answer and Explanation:
The computation is shown below:
1) Number of unit sold in 2016 is
As we know that
Total contribution margin is
= Fixed cost + Net income
= $153,200 + $574,100
= $727,300
And, the Contribution margin per unit is
= $153 - $93
= 60 per unit
So, the Number of unit sold in 2016 is
= $727,300 ÷ 60
= 12,122 Units
2) Number of unit sold is
= ($574,100 + $153,200 + $62,200) ÷ 60
= 13,158 Units
3) The selling price is
Break even = (Fixed cost + Desired profit) ÷ Contribution margin
12,122 = ($574,100 + $153,200 + $622,00) ÷ (X - $93)
12,122X - $1,127,346 = $789,500
12,122X = $1,916,846
X(Selling price) = $1,916,846 ÷ 12122
= $158 per unit
. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.
Question Completion:
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 38,500 October 28,500 August 87,000 November 15,000 September 56,000 December 15,500 The selling price of the beach umbrellas is $14 per unit. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $504,000. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: June 30 91,550 feet September 30 ? feet Gilden costs $0.60 per foot. One-half of a month’s purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $49,290. Required: 1.
Answer:
Milo Company
July Aug. Sept. Total
1. Estimated sales $539,000 $1,218,000 $784,000 $2,541,000
2. Cash collections $489,300 $715,750 $1,026,900 $2,231,950
July Aug. Sept. Oct.
3. Production units 45,775 72,350 51,875 26,475
July Aug. Sept. Total
4. Quantity of Gilden (feet) 236,250 248,450 156,700 641,400
5. Cost of Purchases $141,750 $149,070 $94,020 $384,840
6. Cash disbursements for raw
material purchases $120,165 $145,410 $121,545 $387,120
Explanation:
a) Data and Calculations:
Selling price of the beach umbrellas = $14 per unit
June July Aug. Sept. Oct. Nov. Dec.
Estimated
sales 38,500 87,000 56,000 28,500 15,000 15,500
Sales $504,000 539,000 1,218,000 784,000 399,000 210,000 217,000
Sales Collection:
June July Aug. Sept. Total
Sales on credit 539,000 1,218,000 784,000 $2,541,000
Sales Collection:
30% month of sale 161,700 365,400 235,200 762,300
65% month following 327,600 350,350 791,700 1,469,650
5% uncollectible
Total collections $489,300 $715,750 $1,026,900 $2,231,950
July August September October
Beginning Inventory $75,600 $80,850 $182,700 $117,600
Ending Inventory 80,850 182,700 117,600 59,850
Sales 539,000 1,218,000 784,000 399,000
Finished Goods Inventory:
June July Aug. Sept. Oct. Nov. Dec.
Estimated
sales 36,000 38,500 87,000 56,000 28,500 15,000 15,500
Ending 5,775 13,050 8,400 4,275 2,250
Available 41,775 51,550 85,400 60,275 30,750
Beginning 5,400 5,775 13,050 8,400 4,275
Production 36,375 45,775 72,350 51,875 26,475
Raw materials inventory:
June July Aug. Sept. Oct.
Production units 36,375 45,775 72,350 51,875 26,475
Production needs 145,500 183,100 289,400 207,500 105,900
Ending inventory 91,550 144,700 103,750 52,950
Available materials 237,050 327,800 393,150 260,450
Beginning inventory 91,550 144,700 103,750 52,950
Purchases 236,250 248,450 156,700
Cost of Purchases $141,750 $149,070 $94,020
Payment for purchases:
Accounts payable $49,290
50% month of purchase 70,875 74,535 47,010
50% following purchase 70,875 74,535
Total payments $120,165 $145,410 $121,545
Parking lot staff budget Adventure Park is a large theme park. Staffing for the theme park involves many different labor classifications, one of which is the parking lot staff. The parking lot staff collects parking fees, provides directions, and operates trams. The staff size is a function of the number of daily vehicles. Adventure Park has determined from historical experience that a staff member is needed for every 200 vehicles. Adventure Park estimates staff for both school days and nonschool days. Nonschool days are higher attendance days than school days. The number of expected vehicles for each day is as follows:
School Days Nonschool Days
Number of vehicles per day 3,000 8,000
Number of days per year 165 200
Parking fees are $10 per vehicle. Each parking lot employee is paid $110 per day.
Required:
a. Determine the annual parking lot staff budget for school days, nonschool days, and total.
b. Determine the parking revenue for school days, nonschool days, and total.
c. If depreciation expense and other expenses for running the parking lot were estimated to be $2 million per year, determine the parking lot's budgeted profit.
Answer: See explanation
Explanation:
a. Determine the annual parking lot staff budget for school days, nonschool days, and total.
For school days:
Number of staff required per day = 3000/20 = 15
Number of staff days per year = 15 × 165 = 2475
Annual parking lot staff budget = 2475 × $110 = $272250
For non school days:
Number of staff required per day = 8000/20 = 40
Number of staff days per year = 40 × 200 = 8000
Annual parking lot staff budget = 800 × $110 = $880,000
Total annual parking lot staff budget = $272250 + $880000 = $1152250
b. Determine the parking revenue for school days, nonschool days, and total.
For school days:
Total number of vehicles per year = 3000 × 165 = 495000
Parking revenue = 495000 × $10 = $4950000
For non school days:
Total number of vehicles per year = 8000 × 200 = 1600000
Parking revenue = 1600000 × $10 = $16000000
Total parking revenue = $4950000 + $16000000 = $20950000
c. If depreciation expense and other expenses for running the parking lot were estimated to be $2 million per year, determine the parking lot's budgeted profit.
Parking revenue = $20,950,000
Less: Parking lot staff payroll = $1152250
Less: Depreciation and other expenses = $2000000
Budgeted profit = $177977500
Product A is normally sold for $9.60 per unit. A special price of $7.20 is offered for the export market. The variable production cost is $5.00 per unit. An additional export tariff of 15% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order.
Required:
A. Prepare a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order.
B. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?
2) Product B has revenue of $39,500, variable cost of goods sold of $25,500, variable selling expenses of $16,500, and fixed costs of $15,000, creating a loss from operations of $17,500.
Required:
A. Prepare a differential analysis as of May 9 to determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision.
B. Determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2).
Answer:
A. Differential Analysis dated March 16
Reject Accept
Sales revenue per unit $0 $7.20
Variable production cost 0 5.00
Additional export tariff 0 1.08
Total variable costs 0 $6.08
Net income $0 $1.12
B. The special order should be accepted.
2) Product B:
Revenue of $39,500
Variable cost of goods sold of $25,500
Variable selling expenses of $16,500
Fixed costs of $15,000
Operational loss $17,500
Differential Analysis of May 9
Reject Accept
Sales revenue $0 $39,500
Variable costs:
Product $0 25,500
Selling $0 16,500
Fixed costs $15,000 15,000
Total costs $15,000 $57,000
Net loss $15,000 $17,500
B) Product B should be discontinued.
Explanation:
a) Data and Calculations:
Normal selling price per unit of Product A = $9.60
Special order price for the export market = $7.20
Variable production cost = $5.00 per unit
Additional export tariff = $1.08 ($7.20 * 15%)
Total variable production and export costs = $6.08
A product sells for $210 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to earn $35,000 after tax income (assume a 30% tax rate), how many units must be sold
Answer:
5,688 units
Explanation:
Target sales = Target Profit + Fixed Costs ÷ Contribution per unit
where,
Contribution per unit = Sales - Variable Costs
= $210 - $130 = $80
therefore,
Target sales = ($35,000 + $420,000) ÷ $80 = 5,688 units
intercontinentel baseball
Manufacturers 18m) hasan
outstanding bond that reatures
moyears. The bond, which
pays $25 intrest overy six
months 850 per share), is
Currently selling for 598.55
What is the bond's yeuld to
Answer:
12%
Explanation:
The computation of the yield to maturity is shown below:
Given that
Coupon (pmt) = $ 25
Present Value of Bond (PV) = $598.55
Face Value (FV) = $1000
No of Semi annual Period (nper) = 10 × 2 = 20
Now
The formula to calculate Bond's Half yearly yield to maturity is = rate(nper,pmt,-pv,fv)
= rate(20,25,-598.55,1000)
= 6%
Now Bond's Annual yield to maturity is
= 6% × 2
= 12%
difference between real flows and monetary flows
Which of the following statements is incorrect?
a. Adjustments to prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities.
b. Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded.
c. Adjusting entries can be used to record both accrued expenses and accrued revenues.
d. Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time.
e. Adjusting entries affect the cash account.
my brain can't process this lol
Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the following account information from their year-end separate financial records: Alpha Beta Inventory $95,000 $88,000 Sales Revenue 800,000 300,000 Cost of Goods Sold 600,000 180,000 During the current year, Alpha sold inventory to Beta for $100,000. As of year end, Beta had resold only 60 percent of these intra-entity purchases. Alpha sells inventory to Beta at the same markup it uses for all of its customers. What is the total for consolidated inventory
Answer:
$173,000
Explanation:
The computation of the total consolidated inventory is shown below:
But before that following calculations need to be done
Percentage profits that Alpha charge to other customers is
= ($800,000 - $600,000) ÷ $800,000
= 25% of sales
Stock held at year end is
= $100,000 × 40%
= $40,000
Profit involved in stock is
= $40,000 × 25%
= $10,000
Now the stock of beta is
= $88,000 - $10,000
= $78,000
And finally, the Total for consolidated inventory is
= $95,000 + $78,000
= $173,000
Compute the current ratio for the fiscal years ending January 31, 2016, and February 1, 2015. a-2. Compute the quick ratio for the fiscal years ending January 31, 2016, and February 1, 2015. a-3. Compute the amount of working capital for the fiscal years ending January 31, 2016, and February 1, 2015. a-4. Compute the percentage change in working capital from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015. a-5. Compute the percentage change in cash and cash equivalents from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015.
Answer:
a1: January 31, 2016 Current ratio 1.357
February 1, 2015 1.358
a2: Quick ratio January 31, 2016 0.414
February 1, 2015 0.375
a3: Working capital January 31, 2016 4,467
February 1, 2015 4,033.
a4: % change in working capital in 2016 10.76%
% change in working capital in 2015 -10.97%
a5: % change in cash and cash equivalents in 2016 28.61%
% change in cash and cash equivalents in 2015 -10.68%
Explanation:
a1. Computation for Current ratio using this formula
Current ratio = current assets/current liabilities.
Let plug in the formula
Ratio for fiscal year ending January 31, 2016 = 16993/12526
Ratio for fiscal year ending January 31, 2016 = = 1.357
Ratio for the fiscal year ending February 1, 2015 = 15302/11269
Ratio for the fiscal year ending February 1, 2015 = 1.358
a2. Computation for Quick ratio using this formula
Quick ratio = (Total current assets – inventory – prepaid expenses)/current liabilities.
Let plug in the formula
Ratio for fiscal year ending January 31, 2016 = (16993-11809)/12526
Ratio for fiscal year ending January 31, 2016= 0.414
Ratio for the fiscal year ending February 1, 2015 = (15302-11079)/11269
Ratio for the fiscal year ending February 1, 2015 = 0.375
a3. Computation for Working capital using this formula
Working capital = current assets – current liabilities
Let plug in the formula
Working capital for fiscal year ending January 31, 2016 = 16993-12526
Working capital for fiscal year ending January 31, 2016= 4,467.
Working capital for the fiscal year ending February 1, 2015 = 15302-11269
Working capital for the fiscal year ending February 1, 2015= 4,033.
a4. Computation for % change in working capital in 2016 from prior year
% change in working capital in 2016 from prior year = (4467-4033)/4033
% change in working capital in 2016 from prior year = 10.76%
% change in working capital in 2015 from prior year = (4033-4530)/4530
% change in working capital in 2015 from prior year = -10.97%
a5. Computation for % change in cash and cash equivalents in 2016 from prior year
% change in cash and cash equivalents in 2016 from prior year= (2216-1723)/1723
% change in cash and cash equivalents in 2016 from prior year= 28.61%
% change in cash and cash equivalents in 2015 from prior year = (1723-1929)/1929
% change in cash and cash equivalents in 2015 from prior year= -10.68%
5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 9% coupon, semiannual payment ($45 payment every 6 months). The bonds currently sell for $896.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? Do not round intermediate calculations. Round your answer to two decimal places.
Answer: 7.67%
Explanation:
To solve this, the financial calculator will be needed
Present value = -896.87
Future Value = 1,000
N = [(25 - 5years) × 2 = 40
PMT = $45
Given the above information, we will press the financial calculator as we'll press CPT after which we then press I/Y and we'll get 5.11%
Then, the the firm's after-tax cost of debt will be:
= (5.11% x 2 )(1 - 0.25)
= (0.0511 × 2) (0.75)
= 0.07665
= 7.665%
= 7.67%
Swifty Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $136,200 Allowance for Doubtful Accounts $3,670 Sales Revenue (all on credit) 813,600 Sales Returns and Allowances 54,790 Prepare the journal entry to record bad debt expense assuming Swifty Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,360 debit balance.
Answer:
(a) Debit Bad Debt Expense for $1,778; and Credit Allowance for Doubtful Accounts for $1,778.
(b) Debit Bad Debt Expense for $6,808; and Credit Allowance for Doubtful Accounts for $6,808.
Explanation:
(a) Company estimates bad debts at 4% of accounts receivable
Estimated bad debt = Accounts Receivable * 4% of accounts receivable = $136,200 * 4% = $5,448
Bad Debt Expense = Estimated bad debt - Allowance for Doubtful Accounts = $5,448 - $3,670 = 1,778
The journal entries will now look as follows:
Particulars Debit ($) Credit ($)
Bad Debt Expense 1,778
Allowance for Doubtful Accounts 1,778
(To record bad debt expense.)
(b) Company estimates bad debts at 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,360 debit balance.
Bad debt expense = (Accounts Receivable * 4% of accounts receivable) + Allowance for Doubtful Accounts debit balance = ($136,200 * 4%) + $1,360 = $6,808
The journal entries will now look as follows:
Particulars Debit ($) Credit ($)
Bad Debt Expense 6,808
Allowance for Doubtful Accounts 6,808
(To record bad debt expense.)
Farm products which are perishable and seasonal nature are supplied by
Answer:
★ Farm products which are perishable and seasonal nature are supplied by many producers.
Explanation:
Hope you have a great day :)
Use T-accounts to record the transactions below, which occur on March 12, 2020, close the T-accounts, and construct a balance sheet to answer the question. 1. Purchase equipment for $50,000 in cash 2. Borrow $67,000 from a bank 3. Issue $80,000 in stock 4. Buy $16,000 worth of manufacturing supplies on credit 5. Pay $7,000 owed to a supplier What is the final amount in Total Equity?
Answer:
Stock Issue $80,000
Less : Purchase of equipment $50,000
Add: Borrowing from bank $67,000
Less: Manufacturing Supplies $16,000
Less: Payment to Supplier $7,000
Ending Balance $83,000
Explanation:
Total equity is the part of a business which is the main financing source. Liabilities are deducted from assets to derive equity of a business. Equity is the main source of financing for any business. Equity can be raised from various means, borrowing, stock issues, cash investments and other similar transactions.
Based on your understanding of P/E ratios, in which of the following situations would the average trailing P/E ratio (current price divided by earnings per share over the previous 12 months) of the S&P 500 Index be higher? The outlook for the economy and the markets is for a downturn. The outlook for the economy and the markets is for an improvement.
Answer:
The outlook for the economy and the markets is for an improvement.
Explanation:
p/e ratio = price / earning
the higher the equity, the lower the ratio
If the p/e ratio is expected to be higher, it means that the equity would have to be lower this year than next year .
this implies that earnings would be higher next year and p/e ratio would be lower. this means there is a positive economic outlook
Motorcycle Manufacturers, Inc. projected sales of 51,100 machines for the year. The estimated January 1 inventory is 6,460 units, and the desired December 31 inventory is 7,130 units. What is the budgeted production (in units) for the year
Answer:
51,770 units
Explanation:
With regards to the above, the budgeted production (in unit) for the year is computed as;
= Sales - Beginning inventory + Ending inventory
Given that ;
Sales = 51,100
Beginning inventory = 6,460
Ending inventory = 7,130
Budgeted production in units for the year = 51,100 - 6,460 + 7,130 = 51,770 units
From the choices presented, choose the appropriate term for completing each of the following sentences: a. Advertising expenses are usually viewed as costs. b. An example of factory overhead is . c. Direct materials costs and direct labor costs are called costs. d. Implementing automatic factory robotics equipment normally the factory overhead component of product costs. e. Materials that are an integral part of the manufactured product are classified as . f. An oil refinery would normally use a cost accounting system. g. The balance sheet of a manufacturer would include an account for . h. The wages of an assembly worker are normally considered a cost.
Answer:
a. Advertising expenses are usually viewed as period costs.
b. An example of factory overhead is plant depreciation.
c. Direct materials costs and direct labor costs are called conversion costs.
d. Implementing automatic factory robotics equipment normally decreases the factory overhead component of product costs.
e. Materials that are an integral part of the manufactured product are classified as direct materials.
f. An oil refinery would normally use a process cost accounting system.
g. The balance sheet of a manufacturer would include an account for work in process inventory.
h. The wages of an assembly worker are normally considered a product cost.
Bridgeport Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,836,000 on March 1, $1,236,000 on June 1, and $3,038,370 on December 31. Bridgeport Company borrowed $1,112,250 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,342,100 note payable and an 10%, 4-year, $3,467,800 note payable. Compute the weighted-average interest rate used for interest capitalization purposes.
Answer:
9.6%
Explanation:
According to the problem, calculation are as follows,
Company borrowed on March 1 = $1,112,250
First we calculate total expenditures in constructing a building.
Total Expense = ($1,836,000 × 10÷12)+ ($1,236,000 × 7÷12)+ ($3,038,370 × 0÷12)
= $1,530,000 + $721,000 + 0
= $2,251,000
So, Difference in both amount = $2,251,000 - $1,112,250 = $1,138,750
We can calculate the weighted average interest rate by using following formula,
Weighted average interest rate = Interest ÷ outstanding principal
Where, Outstanding principal = $2,342,100 + $3,467,800 = $5,809,900
Interest = $2,342,100 × 9% + $3,467,800 × 10%
= $210,789 + $346,780 = $557,569
So, by putting the value in formula, we get,
Weighted average interest rate = $557,569 ÷ $5,809,900
= 0.096 or 9.6%
what is the meaning of marketing
Answer:
Marketing is a set of activities related to creating, communicating, delivering, and exchanging offerings that have value for others.
Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews in a seven-state area: Illinoise, Indiana, Michigan, Minnesota, Mississippi, Ohio, and Wisconsin. The company's marketing department has collected data from its distributers in each state. This data consists of the quantity and price (per case) of microbrews sold in each state, as well as the average income (in thousands of dollars) of consumers living in various regions of each state. The data for each state are available via the link below--please note there are multiple tabs at the bottom of the spreadsheet, each refers to one of the seven states selling the Kalamazoo Brewing Company’s microbrews.
Excel Data File
Quantity Price Income
575 31.26 33.95
674 30.69 35.51
616 31.54 28.78
183 27.41 30.44
501 29.75 31.28
578 29.48 33.77
590 28.94 38.31
445 28.17 34.01
603 28.58 32.53
713 28.57 31.69
337 30.06 32.26
230 29.36 31.57
403 28.81 32.75
383 32.52 29.48
568 32.02 35.91
698 32.91 34.85
826 28.45 34.06
789 26.85 38.92
645 30.49 35.94
601 31.72 38.05
467 31.23 36.48
429 31.28 37.61
552 28.89 38.29
553 31.13 36.9
562 27.52 39.22
352 30.02 34.21
611 31.38 33.97
346 29.08 38.53
354 28.8 34.4
401 27.64 34.01
253 30.47 34.24
524 30.97 38.29
211 32.85 34.66
666 30.11 41.38
468 29.48 32.14
585 28.41 29.16
578 29.96 35.05
656 30.46 37.11
571 32.86 32.94
454 28.49 32.7
510 30.67 33.14
672 31.92 33.73
499 28.44 41.92
560 27.94 35.06
848 29.74 32.71
617 29.54 37.96
530 31.34 37.38
649 30.08 35.55
824 29.13 42.89
626 31.72 37.17
Assuming that the underlying demand relation is a linear function of price and income, use your spreadsheet program to obtain least squares estimates of Ohio’s demand for KBC microbrews. Instruction:
If the estimate is negative, enter a negative number (-) in the equation.
Answer:
The least squares estimates of Ohio’s demand for KBC microbrews is Quantity = 1.57Price + 14.00Income.
Explanation:
Note: See Sheet1 of the attached excel for the replication of the data given in the question and Sheet2 for the regression analysis output.
In the third table in the Sheet2, the second column is for the coefficients where, by rounding to 2 decimal places, we have:
Price = 1.57
Income = 14.00
Note: The intercept is 0 because a zero intercept was chosen in the analysi.
Based on the above, the least squares estimates of Ohio’s demand for KBC microbrews can be written as follows:
Quantity = 1.57Price + 14.00Income
To run the regression from Sheet1 in order to obtain the output in Sheet, follow his process:
Click the “Data” menu, and then the “Data Analysis” tab. From the new window, scroll down to find and click on "Regression" and then click “OK”.
In the new window, click in the box of “Input Y Range”, and then select the column containing the Quantity data as the dependent variable. Also in the new window, click in the box of “Input X Range”, and then select the column containing the both Price and Income data as the independent variables. Also, select "Labels", "Confidence level (95%)", and "Constant is Zero". Then click "OK" to obtain the output in Sheet2.
Signal mistakenly produced 1,075 defective cell phones. The phones cost $70 each to produce. A salvage company will buy the defective phones as they are for $39 each. It would cost Signal $82 per phone to rework the phones. If the phones are reworked, Signal could sell them for $146 each. Signal has excess capacity. Should Signal scrap or rework the phones
Answer: Rework the phones
Explanation:
The phones have already been produced so the cost price of $70 does not matter as it is a sunk cost.
The decision the company makes between scrap and reworking will depend on which option bring in more money.
Scrap = $39
Reworking:
= Price after reworking - Cost to rework
= 146 - 82
= $64
Incremental income of reworking over scrap:
= 1,075 * (64 - 39)
= $26,875
Signal makes an incremental income of $26,875 if they rework the phones so they should do that.
The real interest rate earned is the Group of answer choices same as the nominal interest rate when inflation is moderate cost of borrowing in current consumer prices cost of borrowing in current producer prices cost of borrowing adjust for the rate of change in the price level nominal interest rate adjusted for the growth rate of the economy
Answer:
cost of borrowing adjust for the rate of change in the price level
Explanation:
The real interest rate earned is the rate where the borrowing cost would be adjusted for the change in the rate in the level of the price as the real interest rate represent the interest rate that should be adjusted to the inflation
Hence, according to the given options, second option is correct
hence, the same would be relevant
which activity is an economic activity?
a / watching tv
b / reading a book
c / playing video games
d / helping a friends decorate for a party
e / selling vegetables and fruits
Answer:
e
Explanation:
by buying goods you are stimulating the economy