Errors in the sales forecast can be offset by similar errors in costs and income forecasts. Thus, as long as the errors are not large, sales forecast accuracy is not critical to the firm. Correct or Incorrect?

Answers

Answer 1

Answer: False

Explanation:

The above analysis is false. Sales forecast is when future sales are being estimated. It is very important for the sales forecast to be correct and accurate because it is used by the organization to make decisions and also predict the performances.

It is actually possible for the errors in the sales forecast to be offset by similar errors in costs and income forecasts but the accuracy of the sales forecast matters a lot.


Related Questions

The Botosan Factory has determined that its budgeted factory overhead budget for the year is $601,880 and budgeted direct labor hours are 367,000. If the actual direct labor hours for the period are 334,000, how much overhead would be allocated to the period

Answers

Answer:

Allocated MOH= $541,200

Explanation:

Giving the following information:

Estimated overhead= $601,880

Budgeted direct labor hours= 367,000

The actual direct labor hours for the period are 334,000

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= 601,880/367,000

Predetermined manufacturing overhead rate= $1.64 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.64*334,000

Allocated MOH= $541,200

Furniture costing $61,700 is sold at its book value in 2017. Acquisitions of furniture total $50,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture

Answers

Answer:

cash inflow = $32,100

Explanation:

there is some information missing:

accumulated depreciation 2016 (furniture) = $9,000depreciation expense 2017 (furniture) = $37,600accumulated depreciation 2017 (furniture) = $17,000

we must first determine the book value of the furniture which was sold:

total depreciation related to the sold furniture = $9,000 + $37,600 - $17,000 = $29,600

book value = $61,700 - $29,600 = $32,100

since the furniture was sold at book value, then the cash inflow = $32,100

Cash inflow refers to money being received or earned by the company, while cash outflows refer to money being paid by the company.

❗️❗️can anyone help me out with BIM PLEASE ❗️❗️(banking & credit cards)❗️Which terms describe an account that does not have sufficient funds to cover all the charges made to it? Select all that
apply.
Overdrawn
Non-sufficient funds
Insufficient funds
Loan
Overdraft

Answers

Answer:

Overdrawn

Insufficient funds

Explanation:

An account that doesn't have sufficient funds to cover all charges made against it, has special terms which bankers use to describe it. They include:

i. Insufficient funds: this refers to situation where the amount in the account is less than amount drawn on it or charges made against it.

ii. Account overdrawn: this doesn't have a special bank permit to withdraw more than what is in the account.

Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's first year of operations and they have hired you as their CPA to prepare the income statement and balance sheet for their company. As such, January 1st , 2018 was the first day that Mason was in business. For the month of January, record all the necessary journal entries for transactions that occurred during the month. In addition, please prepare all necessary adjusting journal entries as of the end of the month.
From the information below, please fill out the "journal entries tab" for all the necessary journal entries. Furthermore, please complete the "T-Accounts" tab for the individual accounts so that the trial balance tab can be updated (automatically). I prepared the first journal entry for you in the journal entries tab and T-Accounts tab. Ensure you label the entries similar to how I have shown in Entry #1.
Once all entries are recored and the T-Accounts tab is updated, please prepare the financial statements (income statement and balance sheet) for the month of January.
Journal Entry #1
Mason Automotive sells 10,000,000 shares at $5 par for $30 on January 1st, 2018.
Journal Entry #2
Ed Mason, the CEO, hires 3,000 employees, whom will receive a combined salary of $12 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 5th. Employee's withholdings are as follows: 10% for federal income taxes 5% for state income taxes and 7% for FICA. Record the necessary entry as of January 1st, 2018.
Journal Entry #3
Mason Automotive issues a bond payable on January 1st, 2018 with a face value of $200 Million at 102. The bond will have a useful life of 5 years and interest is paid out monthly based on a rate of 5% APR. Record the necessary journal entry as of January 1st 2018.
(Note: Assume straight line amortization for the bond discount/premium).
Journal Entry #4
Mason Automotive purchased $80 Million dollars worth of inventory on account on January 2nd, 2018. Mason notes that it will use a perpetual inventory system to track inventory.
Journal Entry #5
Mason Automotive purchases fixed assets of $120 Million that will have a useful life of 10 years and no salvage value on January 2, 2018. $20 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method.
Journal Entry #6
On January 2nd, Mason Automotive shipped an order to Corby Panther Company. The shipping terms were FOB shipping point and the value of the order was $50 Million and the inventory cost was $20 Million. Assume that this sale was made on account.
Journal Entry #7
On January 3rd, Mason Automotive receives $75 Million advance payment from a customer, Michael Scott Paper Company, to manufacture 7,500 cars.
Journal Entry #8
Mason Automotive buys a patent from Apple for $24 Million on January 3rd, 2018. The patent has a legal life of 20 years, but a useful life of 10 years. Record the necessary entry as of January 3rd, 2018. Assume the patent was purchased using cash.
Journal Entry #9
Mason Automotive purchased $2 Million dollars worth of supplies January 4th, 2018. $1.5 Million was paid with cash with the remaining balance on account.
Journal Entry #10
Mason Automotive pre-pays for Rent Expense for the next year of $12 Million and Insurance Expense of $2.4 Million on January 4th, 2018
Journal Entry #11
On January 20th, Mason Automotive decides to purchase 2,000,000 shares of Treasury stock at $25 per share.
Month End Adjusting Entries
There are 10 applicable adjusting entries that need to be made as of the end of the month based on the information provided above. When recording these adjusting entries consider the following facts:
1) Interest expense will be recorded as a operating expense items on the income statement.
2) Record the necessary adjusting entries related to pre-paid expense as separate journal entries.
3) When reviewing the supply room as of the end of the month, Mason Automation noted that it had $1.5 Million worth of supplies still on hand.
4) As of the end of the month, 4,000 cars were completed for Michael Scott Paper Company and the performance obligation had been met on those 4,000 cars. As such, revenue was determined to be earned on those 4,000 vehicles and it was noted that each vehicle costed $8,000 to manufacture.
5) Mason Automation uses the balance sheet approach in estimating the allowance for doubtful accounts as of the end of the period. Based on industry average, Mason noted that it will use 5% of receivables as an estimation.
6) When preparing the balance sheet, close out net income to retained earnings.

Answers

Answer:

1) Mason Automotive sells 10,000,000 shares at $5 par for $30 on January 1st, 2018.  

Dr Cash 300,000,000

   Cr Common stock 50,000,000

   Cr Additional paid in capital 250,000,000

2) Ed Mason, the CEO, hires 3,000 employees, whom will receive a combined salary of $12 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 5th. Employee's withholdings are as follows: 10% for federal income taxes 5% for state income taxes and 7% for FICA. Record the necessary entry as of January 1st, 2019.          

No journal entry required

Adjusting entry:

January 31, 2018, wages expense

Dr Wages expense 12,000,000

Dr FICA taxes expense 840,000

   Cr Federal income taxes withheld payable 1,200,000

   Cr State income taxes withheld payable 600,000

   Cr FICA taxes withheld payable 840,000

   Cr FICA taxes payable 840,000

   Cr Wages payable 9,360,000

3) Mason Automotive issues a bond payable on January 1st, 2018 with a face value of $200 Million at 102. The bond will have a useful life of 5 years with an interest payment of 5% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 1st,  2018.

Dr Cash 204,000,000

   Cr Premium on bonds payable 4,000,000

   Cr Bonds payable 200,000,000

(Note: When considering the amortization of the discount or premium, assume the straight line method is used).  

Adjusting entry        

January 31, 2018, interest expense

Dr interest expense 766,666.66

Dr Premium on bonds payable 66,666.67

   Cr Interest payable 833,333.33

4) Mason Automotive purchased $80 Million dollars worth of inventory on January 2nd, 2018. $80 Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory.  

Dr Inventory 80,000,000

       Cr Accounts payable 80,000,000      

5) Mason Automotive purchases fixed assets of $120 Million that will have a useful life of 10 years and no salvage value on January 2, 2018. $20 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method.  

Dr Fixed assets 120,000,000

   Cr Cash 20,000,000

   Cr Accounts payable 100,000,000

Adjusting entry:

January 31, 2019, depreciation expense  

Dr Depreciation expense 1,000,000

   Cr Accumulated depreciation - fixed assets 1,000,000    

6) On January 2nd, Mason Automotive shipped an order to Corby Panther Company. The shipping terms were FOB shipping point and the value of the order was $50 Million and the inventory cost was $20 Million. Assume that this sale was made on account.          

Dr Accounts receivable 50,000,000

   Cr Sales revenue 50,000,000

Dr Cost of goods sold 20,000,000

   Cr Inventory 20,000,000

Adjusting entry:

January 31, 2018, allowance for doubtful accounts (5%)

Dr Bad debt expense 2,500,000

   Cr Allowance for doubtful accounts 2,500,000

7) On January 3, Mason Automotive receives $75 Million advance payment from a customer, Michael Scott Paper Company, to manufacture 7,500 cars.        

Dr Cash 75,000,000

   Cr Deferred revenue 75,000,000

Adjusting entry:

January 31, 2019, 4,000 cars were finished and delivered

Dr Deferred revenue 40,000,000

   Cr Sales revenue 40,000,000

Dr Cost of goods sold 32,000,000

    Cr Inventory: finished cars 32,000,000

8) Mason Automotive buys a patent from Apple for $24 Million on January 3rd, 2018. The patent has a legal life of 20 years, but a the useful life of 10. Record the necessary entry as of January 3rd, 2018. Assume the patent was purchased using cash.          

Dr Patent 24,000,000

   Cr Cash 24,000,000

Adjusting entry:

January 31, 2018, patent amortization expense

Dr Patent amortization expense 200,000

   Cr Patent 200,000

9) Mason Automotive purchased $2 Million dollars worth of supplies on account on January 4, 2018.      

Dr Supplies 2,000,000

    Cr Cash 1,500,000

    Cr Accounts payable 500,000

Adjusting entry

January 31, 2018, supplies expense

Dr Supplies expense 500,000

   Cr Supplies 500,000    

10) Mason Automotive pre-pays for Rent Expense for the next year of $12 Million and Insurance Expense of $2.4 Million on January 4, 2018.  

Dr Prepaid rent 12,000,000

Dr Prepaid insurance 2,400,000

   Cr Cash 14,400,000

Adjusting entries:

January 31, 2019, rent expense

Dr Rent expense 1,000,000

   Cr Prepaid rent 1,000,000

January 31, 2019, insurance expense

Dr Insurance expense 200,000

   Cr Prepaid insurance 200,000        

11) On January 20th, Mason Automotive decides to purchase 2,000,000 shares of Treasury stock at $25 per share.

Dr Treasury stock 50,000,000

   Cr Cash 50,000,000

Closing journal entries:

Dr Sales revenue 90,000,000

    Cr Income summary 90,000,000

Dr Income summary 71,006,66.66

    Cr Wages expense 12,000,000

    Cr FICA taxes expense 840,000

    Cr interest expense 766,666.66

    Cr Depreciation expense 1,000,000

    Cr Cost of goods sold 52,000,000

    Cr Bad debt expense 2,500,000

    Cr Patent amortization expense 200,000

    Cr Supplies expense 500,000

    Cr Rent expense 1,000,000

    Cr Insurance expense 200,000

Dr Income summary 18,993,333.34

    Cr Retained earnings 18,993,333.34

Answer:

i think this is correct

Explanation:

On January 1, 2012 Johnson Company issued bonds with a face value of $750,000. The bonds carry an interest rate of 8% payable each January 1.

Required:
a. Prepare the journal entry for the issuance assuming the bonds are issued at 96.
b. Prepare the journal entry for the issuance assuming the bonds are issued at 103.

Answers

Answer:

a.

January 1    Cash                                          720000 Dr

                   Discount on Bonds Payable    30000 Dr

                            Bonds Payable                        750000 Cr

b.

January 1    Cash                                          772500 Dr

                             Bonds Payable                        750000 Cr

                             Premium on Bonds Payable  22500 Cr

Explanation:

a.

When the bonds are issued at 96, this means that they are issued at 96% of the face value of the bond which is 750000 * 0.96 = 720000

So, the cash received from issuing the bonds is 720000. As the face value of the bonds is 750000 which will be recorded as bonds payable, the difference between the cash received and the face value is the discount amount which will be debited.

b.

When the bonds are issued at 103, this means that they are issued at 103% of the face value of the bond which is 750000 * 1.03 = 772500

So, the cash received from issuing the bonds is 772500. As the face value of the bonds is 750000 which will be recorded as bonds payable, the difference between the cash received and the face value is the premium amount which will be credited.

Sharmer Company issues 5%, 5-year bonds with a par value of $1,000,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%. What is the bond's issue (selling) price, assuming the following factors: n= i= Present Value of an Annuity Present value of $1 5 5 % 4.3295 0.7835 10 3 % 8.7521 0.7812 5 6 % 4.2124 0.7473 10 3 % 8.5302 0.7441

Answers

Answer:

$957,349

Explanation:

the market price of the bonds = PV of face value + PV of coupon payments

PV of face value = $1,000,000 / (1.03)¹⁰ = $744,094

PV of coupon payments = $25,000 x 8.5302 (PV annuity factor, 3%, 10 periods) = $213,255

market price of the bonds = $744,094 + $213,255 = $957,349

journal entry to record the issuance of the bonds:

Dr Cash 957,349

Dr Discount on bonds payable 42,651

    Cr Bonds payable 1,000,000

Suppose that purely competitive firms producing cashews discover that P exceeds MC.
a. Is their combined output of cashews too little, too much, or just right to achieve allocative efficiency?
b. In the long run, what will happen to the supply of cashews and the price of cashews?
1. Supply will increase and the price of cashews will increase.
2. Supply will increase and the price of cashews will decrease.
3. Supply will decrease and the price of cashews will decrease.
4. Supply will decrease and the price of cashews will increase.

Answers

Answer:

a. Too Little

b. 2. Supply will increase and the price of cashews will decrease.

Explanation:

a. Output is always maximised when Marginal Revenue equals Marginal Cost because at this point it is argued that all resources are being utilised. In a purely competitive market, the Price is equal to the Marginal Revenue. If the price is larger than the Marginal Cost that means that Marginal Revenue is larger than Marginal Cost. The firms are therefore not utilising enough resources to produce as much as they can which should change.

b. In the long run in a purely competitive market, more firms will enter the market as they will see it as a chance to make economic profits. As this happens the Supply will increase due to the larger number of firms and the price will decrease as a result as well.

Arthur White Sunglasses sell for about $ 151 per pair. Suppose the company incurs the following average costs per​ pair: LOADING...​(Click the icon to view the cost​ information.) Arthur White has enough idle capacity to accept a​ one-time-only special order from Nevada Glasses for 22 comma 000 pairs of sunglasses at $ 62 per pair. Arthur White will not incur any variable marketing expenses for the order. Read the requirements
Requirement
How would accepting the order affect Arthur White's operating​ income?
In addition to the special​ order's effect on​profits, what other​ (longer-term qualitative) factors should Arthur White's managers consider in deciding whether to accept the​order?
Prepare an incremental analysis to determine the special​order's effect on operating income. ​(Enter a​ "0" for any zero balances.
Use parentheses or a minus sign to indicate a decrease in operating income from the special​ order.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (22,000 units) Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order

Answers

Answer:

How would accepting the order affect Arthur White's operating​ income?

operating income will increase by $88,000

In addition to the special​ order's effect on​profits, what other​ (longer-term qualitative) factors should Arthur White's managers consider in deciding whether to accept the​order?

The most important qualitative factors which cannot be measured in $ are:

Morale Customers Investors Community Products

In this case, the only two factors that could be affected are the investors which will be happy to earn more money and customers which might consider making special orders only. In this case, the special order is feasible because the company has a lot of spare capacity, but what would happen in the future if there is no spare capacity and more customers want to place special orders?

Prepare an incremental analysis to determine the special order's effect on operating income.

                             without special        with special              differential

                             order                        order                         amount

revenue                $0                            $1,364,000                $1,364,000

variable costs      $0                            ($1,276,000)              ($1,276,000)

contribution         $0                             $88,000                   $88,000

margin

fixed costs           $0                             $0                             $0

total effect on      $0                            $88,000                    $88,000

operating income

Explanation:

production costs per unit:

direct labor $11direct materials $39variable manufacturing overhead $8fixed manufacturing overhead $16variable marketing expenses $4total $78

sales price $151

special order 22,000 pairs at $62:

since the company has idle capacity, no fixed manufacturing costs nor any variable marketing expenses

total cost per unit = $78 - $16 - $4 = $58

special order's contribution margin = $62 - $58 = $4 x 22,000 = $88,000

Health and Wealth Company is financed entirely by common stock that is priced to offer a 12 percent expected return. If the company repurchases 20 percent of the common stock and substitutes an equal value of debt yielding 8 percent, what is the expected return on the common stock after refinancing

Answers

Answer: 13%

Explanation:

By substituting 20% of debt for debt yielding 8%, the company now has 20% financing from debt and 80% from equity.

The expected return on common stock after refinancing can be calculated by;

Return after refinancing = Return before refinancing + [tex]\frac{Debt}{Equity}[/tex](return before refinancing - Debt yield)

= 12% + [tex]\frac{0.2}{0.8} (0.12 - 0.08)[/tex]

= 13%

One reason for not requiring a balanced federal budget at all times is that with a balanced-budget rule:_________.
a. the distorting features of the tax system are minimized.
b. it is possible to shift the burden of a war from current to future generations.
c. expenditures are not limited because, if the government wants to raise expenditures, it just raises taxes.
d. in a recession the automatic stabilizing powers of our system of taxes and transfers could not work.

Answers

Answer:

d. in a recession the automatic stabilizing powers of our system of taxes and transfers could not work.

Explanation:

A balanced government expenditure is when government spending equals government revenue.

most times, the government doesn't have a balanced budget. it either has a surplus or a deficit.

When there is a recession, automatic stabilisers - progressive tax and transfer payment - may not be adequate to lift the economy out of recession. So, the government would have to spend more than it receives from taxes to revive the economy. in this case there would be a deficit

Mr. Jones has a salary of $75,000 and $5,000 in dividends, for a total adjusted gross income of $80,000. He also has two real estate investments that he acquired this year: (a) a limited partnership with losses of $4,000, and (b) a real estate project in which he actively participates and owns 15%, with his share of losses equal to $15,000. How much of his losses can he deduct from the income on a joint return

Answers

Answer:

$15,000

Explanation:

Based on the information given we were told that Mr. Jones have gross income of the amount of $80,000 and he had a real estate project in which he owns 15%, which makes Mr. Jones share of losses to be the amount of $15,000. Based on this we can vividly say that Mr. Jones losses will be the amount of $15,000 which is the amount of money Mr. Jones can deduct from the income on a joint return .

Dodero Company produces a single product which sells for $100 per unit. Fixed expenses total $12,000 per month, and variable expenses are $60 per unit. The company's sales average 500 units per month. Which of the following statements is correct?
a. The company's break-even point is $12,000 per month.
b. The fixed expenses remain constant at $24 per unit for any activity level within the relevant range.
c. The company's contribution margin ratio is 40%.
d. Responses A, B, and C are all correct.

Answers

Answer:

c. The company's contribution margin ratio is 40%.

Explanation:

Contribution margin ratio = contribution margin / revenue

contribution margin = total revenue - total variable cost

$100 - $60 = $40

$40 / $100 = 0.4

Breakeven pont = fixed cost / price - variable cost

$12,000  / $100 - $60 = 300

fixed cost per unit decreases as sales increases and decreases as sales decreases

On July 1, 2021, a company loans one of its employees $20,000 and accepts a ten-month, 9% note receivable. Calculate the amount of interest revenue the company will recognize in 2021 and 2022

Answers

Answer:

Interest in 2021=900

Interest in 2022=600

Explanation:

Calculatation of the amount of interest revenue the company will recognize in 2021 2022

Month in 2021 - July To December

Interest in 2021 = 20,000*9%*6/12

Interest in 2021=900

Month in 2022 - January To April

Interest in 2022 = 20,000*9%*4/12

Interest in 2022=600

Therefore the amount of interest revenue the company will recognize in 2021 will be 900 while 2022 will be 600

Answer:

2021:900

2022:600

Explanation:

Month in 2021 - July To December  

Interest in 2021 = 20,000x0.0%x(6/12)  

Interest in 2021=900  

Month in 2022 - January To April  

Interest in 2022 = 20,000x0.09x(4/12)  

Interest in 2022=600  

Therefore the answer for 2021 will be 900 and for 2022 will be 600

Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 1,000 $ 26 $ 28 $ 32 B 500 31 27 34 C 900 19 18 24 D 900 23 20 22 E 800 30 28 29 The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.

Answers

Answer:

A)

A 1,000 x $26.00 =  $ 26,000

B   500 x  $30.60 =  $  15,300

C   900 x  $ 19.00 =  $   17,100

D   900 x $ 19.80 =   $  17,820

E   800 x $26.10 =   $ 20,880  

Total                           $ 97,100

B)

102,240

C)

Write-down at NRV 1,060 debit

        Inventory                1,060 credit

Explanation:

We have to  calculate the net realizable value(NRV) for each item and compare with the historic cost:

      Units//    Cost    ///    NRV

A 1,000 $ 26       $ 32(1 - 0.1) = 28.8

B   500 $  31       $  34(1-0.1)   = 30.60

C   900 $  19       $  24(1-0.1)  = 21.60

D   900 $ 23       $  22(1-0.1)  = 19.80

E 800    $ 30      $  29(1-0.1)  =  26.10

We will always pick the lowest to valuate the goods:

A 1,000 x $26.00 =  $ 26,000

B   500 x  $30.60 =  $  15,300

C   900 x  $ 19.00 =  $   17,100

D   900 x $ 19.80 =   $  17,820

E   800 x $26.10 =   $ 20,880  

Total                           $ 97,100  

Total Cost:

1,000 x 26

+ 500 x 31

+ 900 x 19

+ 900 x 23

+ 800 x 30

103,300

Total NRV

1,000 x 28.80

+ 500 x 30.60

+ 900 x 21.60

+ 900 x 19.80

+ 800 x 26.10

102,240

Comparing at the entire inventory level we get the following adjustment

103,300 - 102,240 = 1,060

The owners decide to take the company public through an IPO, issuing additional 1 million new shares. Assuming that they successfully complete the IPO, the net income for the next year is estimated to be $6 million. The price of shares is set using average price-earnings ratios for similar businesses of 15. What portion of the company will be owned by the angel investor after the IPO

Answers

Answer:

15.79% = 300,000 stocks = $14,210,526

Explanation:

The question is incomplete, you are missing the following:

"The founders and owners of a private company have funded it through the following rounds of investment: Round Source Price Number of Shares Class A Self $1.00 200,000 Class B Angel $1.00 300,000 Class C Venture Capital $1.25 400,000"

total number of outstanding stocks after the IPO = 200,000 + 300,000 + 400,000 + 1,000,000 = 1,900,000

angel investors own 300,000 / 1,900,000 = 0.157895 = 15.79%

price earnings ratio = stock price / earnings per stock

EPS = net income / total outstanding stocks = $6,000,000 / 1,900,000 = $3.1579

15 = stock price / $3.1579

stock price = 15 x $3.1579 = $47.3684

angel investors own 300,000 stocks x $47.3684 = $14,210,526

Standard Direct Materials Cost per Unit Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (2,857 bars) are as follows: Ingredient Quantity Price Cocoa 630 lbs. $0.40 per lb. Sugar 180 lbs. $0.60 per lb. Milk 150 gal. $1.60 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $ per bar

Answers

Answer:

Standard direct material cost per unit= $0.21

Explanation:

Giving the following information:

The standard costs for a batch of chocolate (2,857 bars) are as follows:

Cocoa 630 lbs. $0.40 per lb.

Sugar 180 lbs. $0.60 per lb.

Milk 150 gal. $1.60 per gal

First, we need to calculate the total cost for 2,857 bars:

Total cost= 630*0.4 + 180*0.6 + 150*1.6

Total cost= $600

Now, the unitary standard cost:

Standard direct material cost per unit= 600/2,857

Standard direct material cost per unit= $0.21

Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entrie below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the incom statement account and which is the balance sheet account. Assume the company records prepayments of expenses asset accounts, and cash receipts of unearned revenues in liability accounts.
a. Entry to record consulting services performed but not yet billed (nor recorded).
b. Entry to record Interest revenue earned but not yet collected (nor recorded).
c. Entry to record service revenues performed but not yet billed (nor recorded).
d. To record janitorial expense incurred but not yet paid.
e. To record rent expense incurred but not yet paid
Accounts Account Title Financial Statement
a. Account to be debited Accounts receivable Balance sheet
Account to be credited Consulting services revenue Income statement
b. Account to be debited Interest receivable Balance sheet
Account to be credited interest revenue earned Income statement
c. Account to be debited Accounts receivable Balance sheet
Account to be credited Services revenue earned Income statement
d. Account to be debited Janitorial expense Balance sheet
Account to be credited Accrued expenses payable Income statement
e. Account to be debited Rent expense Balance sheet
Account to be credited Accrued expenses payable Income statement

Answers

Answer and Explanation:

According to the given situation, the income statement and balance sheet as per parts is shown below:-

                        Accounts               Account Title       Financial statements  

For Part A

Debit           Accounts receivable       Liability account      Balance sheet

Credit            Consulting service       Income statement

                        revenue

For Part B

Debit           Interest receivable          Liability account    Balance sheet

Credit            Interest revenue           Income statement

                         

For Part C

Debit           Accounts receivable    Assets account        Balance sheet

Credit            Service Revenue      Income statement

For Part D

Debit           Janitorial expense    Income statement

Credit           Janitorial expense   Liability account        Balance sheet

                         Payable

For Part E

Debit           Rent expenses          Income statement      

Credit          Rent expenses           Liability account        Balance sheet

                     payable

A cafeteria serving line has a coffee urn from which customers serve themselves. Arrivals at the urn follow a Poisson distribution at the rate of 3.0 per minute. In serving themselves, customers take about 14 seconds, exponentially distributed. a. How many customers would you expect to see, on average, at the coffee urn? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers

Answer: 3 customers.

Explanation:

Given the following :

Arrival rate of customers = 3 customers per minute

Service time = 14 seconds

Then if service time is 14 seconds, the service rate per minute will be 60/14 = 4.29 = 4 (nearest whole number)

Service rate = 4 customers per minute.

Number of customers at coffee urn(Nc) :

Nc = (arrival rate) /(service rate - arrival rate)

Nc = (3) / (4 - 3)

Nc = 3 / 1

Nc = 3

Therefore, average number of customers expected at coffee urn = 3

A "flat tax" on personal income, in which the same tax rate is applied to every dollar of income earned by each taxpayer, is an example of

Answers

Answer:

proportional tax

Explanation:

The description stated in the question is an example of a proportional tax. Like mentioned, this is a type of income tax system that enforces the same percentage tax rate to every single individual regardless of their overall income. This applies to low, middle, and high-income taxpayers. Therefore, if a low-income tax individual is charged 10% then the middle and high-income taxpayers will also be charged 10%.

On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $220 million. The expected completion date is April 1, 2023, just in time for the 2023 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions):
2021 2022 2023
Costs incurred during the year $40 $80 $50
Estimated costs to complete as of December 31 120 60
Required:
1. Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. 2. Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 income statements related to this contract assuming this project does not qualify for revenue recognition over time
3. Suppose the estimated costs to complete at the end of 2022 are $80 million instead of $60 million. Compute the amount of revenue and gross profit or loss to be recognized in 2022 assuming Sanderson recognizes revenue over time according to percentage of completion.

Answers

Answer:

1.

2021 Gross profit/loss $15

2022 Gross profit/loss $12

2023 Gross profit/loss $23

2.

2021 Revenue recognized  $0

2022 Revenue recognized $0

2023 Revenue recognized $220

2021 Gross profit/loss $0

2022 Gross profit/loss $0

2023 Gross profit/loss $50

3.Gross profit /loss ($3)

Explanation:

1. Computation of thr Gross Profit recognize over time assuming percentage of completion method

Using PERCENTAGE OF COMPLETION

Using this formula

Choose numerator ÷ Choose denominator = % complete to date

Actual costs to date÷ Estimated total costs= %  

2021 $40 ÷ $160=25.00%

(40+120)  

2022 $120(40+80) ÷$180(40+80+60) = 66.67%    

2023 170  170  =100.00%

(40+80+50)    

2021

To date - Recognized in prior years = Recognized in 2018

Construction revenue $55(220*25%) $0 $55

 

Less: Construction expense $40 $0 $40

Gross profit (loss) $15 $0 $15

2022

To date - Recognized in prior years = Recognized in 2019

Construction revenue $147(220*66.66%) $55 $92

Less: Construction expense $120(40+80) $40 $80

Gross profit (loss) $27 $15 $12

2023

To date - Recognized in prior years = Recognized in 2020

Construction revenue $220 $147 $73

 

Less: Construction expense $170(40+80+50) $120 $50

 

Gross profit (loss) $50 $27 $23

2. Calculation for the Statement showing revenue and gross profit assuming this project does not qualify for revenue recognition over time. ( $ in Million)

Year Revenue recognized Gross Profit (Loss) recognized

2021 $0  $0

2022 $0  $0

2023 $220 $50(220-170)

3  Computation of the Revenue and gross profit or loss to be recognized in 2022 (using the percentage of completion )

Percentages of completion

Choose numerator ÷ Choose denominator = % complete to date

Actual costs to date ÷Estimated total costs=%  

2022 $120(40+80) ÷ $200(40+80+80) = 60.00%  

2022

To date Recognized in prior years Recognized in 2019

Construction revenue $132(220*60) $55 $77

 

Less:Construction expense $120(40+80) $40 $80

Gross profit (loss) $12     $15 ($3)

Pendleton Company, a merchandising company, is developing its master budget for 2015. The income statement for 2014 is as follows:

Gross sales $2,000,000
Less: Estimated uncollectible accounts (40,000)
Net sales 1,960,000
Cost of goods sold (1,100,000)
Gross profit 860,000
Operating expenses (including $25,000 depreciation) (500,000)
Net income $360,000

The following are management’s goals and forecasts for 2015:

a. Selling prices will increase by 6 percent, and sales volume will increase by 4 percent.
b. The cost of merchandise will increase by 3 percent.
c. All operating expenses are fixed and are paid in the month incurred. Price increases for operating expenses will be 10 percent. The company uses straight-line depreciation.
d. The estimated uncollectibles are 2 percent of budgeted sales.

Required
Prepare a budgeted functional income statement for 2015.

Answers

Answer:

Budgeted functional income statement for 2015

Gross sales ($2,000,000  × 1.04 × 1.06)                                       $2,204,800

Less: Estimated uncollectible accounts ($2,204,800 × 2 %)         ($44,096)

Net sales                                                                                        $2,160,704

Cost of goods sold (1,100,000 × 1.03)                                          ($1,133,000)

Gross profit                                                                                     $1,027,704

Operating expenses (475,000 × 1.10)                                            ($522,500)

Depreciation                                                                                     ($25,000)

Net income                                                                                       $480,204

Explanation:

Make the adjustments stated on the 2014 Income Statement.

For Operating Expenses, it is wise to first remove the depreciation expense and apply the increment of 10% to reflect Operating Costs for 2015.

Treat Depreciation Expense separately and at the same amount as for 2014, since depreciation is calculated on straight line method.

On January​ 1, 2017,​ Sophie's Sunlounge owned 4 tanning beds valued at​ $20,000. During​ 2017, Sophie's bought 3 new beds at a total cost of ​$10 comma 00010,000. At the end of the​ year, the market value of all of​ Sophie's beds was ​$26 comma 00026,000. Calculate​ Sophie's gross investment and depreciation during 2017. ​Sophie's gross investment during 2017 was ​$nothing. ​Sophie's depreciation during 2017 was ​$nothing.

Answers

Answer:

Net Investment = 4,000

Explanation:

Gross Investment = 10,000

Depreciation = Market Value - Book value

Depreciation =26,000 - 20,000

Depreciation = 6,000

Net Investment = Gross Investment - Depreciation

Net Investment = 10,000 - 6,000

Net Investment = 4,000

NOTE: Gross investment for 2017 will be the 3 new beds that Sophie bought during 2017 at a total cost of 10,000. To calculate Net investment we should calculate depreciation first by deducting book value from market value.

Consider the following information for Dave Company for the month of May: Direct materials (DM) purchased and used 86,000 gallons Total quantity of DM budgeted to be used in May production 81,400 gallons Actual cost of DM purchased and used in May $230,200 Unfavorable DM quantity variance $12,880 What is the DM price variance in May

Answers

Answer:

Direct material price variance = $ 10,600  favourable

Explanation:

The Direct material quantity variance($) = Direct material qty variance × standard price

Standard price  = Direct material quantity variance ($)/Direct material quantity variance in units

Direct material quantity variance in units= 86,000 - 81,400 = 4,600

Standard price  = $12,880/4,600 units = $2.8

Direct material price variance occurs when the actual quantity of materials are purchased at an actual price per unit higher or lower than the standard price.

Direct material price variance                                                    $

86,000 gallons should have cost (86,000× $2.8) =           240,800

But did cost                                                                            230,200

Direct material price variance                                               10,600  favourable

Direct material price variance = $ 10,600  favourable                                    

Land of Many Lakes (LML) sells butter to a broker in Albert Lea, Minnesota. Because the market for butter is generally considered to be competitive, LML does not a. have any fixed costs of production. b. choose the quantity of butter to produce. c. set marginal revenue equal to marginal cost to maximize profit. d. choose the price at which it sells its butter.

Answers

Answer: d. choose the price at which it sells its butter.

Explanation:

In a competitive market, the individual sellers do not choose a price to sell at but rather the market does. This is due to the high number of sellers in the market so individual sellers do not have bargaining power.  

The price will therefore equal the firm's marginal revenue as well as Average revenue.

Which of the following items are normally classified as current liabilities for a company that has a one-year operating cycle? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

Answers

Answer:

Sales tax payable     FICA-social security taxes payable due in 40 days  Portion of long term note due in 1 month

Explanation:

Current Liabilities refer to obligations owed in a 12 month period. Anything longer is classified as Long Term.

From the options listed the current liabilities will therefore be;

Sales Tax Payable which are the taxes that the government charges on goods and services and it is the responsibility of business to collect these and remit them to the Government on time. This is a current liability as these are remitted quite frequently.

The FICA social security taxes payable due in 40 days is also a current liability due its time period being less than a year.

A portion of a long term loan due in a month will be considered current also due to its time period.

Current liabilities for a company include Sales tax payable, FICA-social security taxes payable due in 40 days and portion of long term note due in 1 month.

What is the term Current Liability about?

Current Liabilities refer to obligations owed in a 12 month period. Anything longer is classified as Long Term.

Sales Tax Payable which are the taxes that the government charges on goods and services and it is the responsibility of business to collect these and remit them to the Government on time

The FICA social security taxes payable due in 40 days is also a current liability due its time period being less than a year.

A portion of a long term loan due in a month will be considered current also due to its time period.

Learn more about Current Liability, refer to the link:

https://brainly.com/question/13388204

Jason has many roles in life. He is an engineering student in college, he's the oldest son in his family, and he earns extra money as an editor for the local newspaper. In his spare time, Jason likes to hike nature trails. In an economic sense, in which role is Jason functioning as a worker? A. Walking on nature trails B. Oldest son in family C. Editor for the local newspaper D. College student

Answers

Answer:

C.

Explanation:

Being an editor for a local newspaper counts as an economic sense because that is the only part that takes part as a job and helps the economy.

Larned Corporation recorded the following transactions for the just completed month.

1. $89,000 in raw materials were purchased on account.
2. $87,000 in raw materials were used in production.
3. Of this amount, $76,000 was for direct materials and the remainder was for indirect materials.
4. Total labor wages of $128,500 were paid in cash. Of this amount, $103,000 was for direct labor and the remainder was for indirect labor.
5. Depreciation of $190,000 was incurred on factory equipment.

Required:
Record the above transactions in journal entries.

Answers

Answer with its Explanation:

Part 1: $89,000 in raw materials were purchased on account.

The purchase of raw material inventory on account is treated as increase in raw material inventory and accounts payables. The journal entry would be as under:

Dr Raw Material Inventory $89,000

Cr Accounts Payables              $89,000

Part 2: $87,000 in raw materials were used in production. Of this amount, $76,000 was for direct materials and the remainder was for indirect materials.

The entry would be increase in work in progress by $76,000 & Manufacturing overhead by $11,000 and would decrease the raw material inventory with $87,000.

The journal entry would be as under:

Dr Work In Progress                 $76,000

Dr Manufacturing Overhead    $11,000

Cr Raw Material  Inventory               $87,000

Part 3: Total labor wages of $128,500 were paid in cash. Of this amount, $103,000 was for direct labor and the remainder was for indirect labor.

The direct cost are allocated to the work in progress and indirect costs are allocated to manufacturing overheads.

The journal entry would be as under:

Dr Work In Progress                 $128,500

Dr Manufacturing Overhead    $103,000

Cr Cash Account                                 $231,500

Part 4: Depreciation of $190,000 was incurred on factory equipment.

The depreciation of the factory equipment is an indirect cost and all the indirect costs are charged to manufacturing overhead.

The journal entry would be as under:

Dr Manufacturing Overhead    $190,000

Cr Cash Account                          $190,000

intext:"The adjusting entry at the end of an accounting period to record the unpaid salaries of employees for work provided is"

Answers

Answer:

A debit to Salaries Expense and a credit to the Salaries Payable Account.

Explanation:

This adjusting entry brings the salary expense account to its accrued balance in line with the accrual concept and matching principle of generally accepted accounting principles.  These state that expenses and revenues should not reflect only the cash basis but the accrual basis, whereby unpaid or prepaid expenses, deferred or unpaid revenues that relate to the accounting period are brought into consideration.

Suppose you deposit ​$ cash into your checking account. By how much will the total money supply increase as a result when the required reserve ratio is 0.​0?

Answers

Answer:

If the required reserve ratio is 0, that means that the money multiplier will be infinite. I guess the question is incomplete.

I looked for similar questions to fill in the blanks:

If you deposit $2,400 and the required reserve ratio is 0.4, then by how much does the money supply increase?

first we must determine the money multiplier = 1 / required reserve ratio = 1 / 0.4 = 2.5

to determine the total effect on the money supply we just multiply the deposit by the multiplier = $2,400 x 2.5 = $6,000 increase.

On August 1, Batson Company issued a 60-day note with a face amount of $58,800 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest calculations.)
a) Determine the proceeds of the note assuming the note carries an interest rate of 10%.
b) Determine the proceeds of the note assuming the note is discounted at 10%.

Answers

Answer:

a. $58,800

b. $57,820

Explanation:

Generally, notes are issued on the discounted or face value. It is face value when the price of the note is the same as the face value while it is discounted when the price of the note is lower than the face or par value.

a. Since the note is issued on the face value of $58,800 , it means that the proceed is the same amount. The proceeds from a note that is issued, is that price at which the note is issued.

b. Discount value

= $58,800 × 10% × 60/360

= $980

Proceeds

= Face/par value of the note - Discount value of the note

= $58,800 - $980

= $57,820

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