Answer:
All Interest earned on a note receivable was not recorded.
Effect: Assets and stockholders' equity overstated
Explanation: An omitting of interest earned on a note receivable will result to an understatement of assets and stockholders’ equity
Depreciation on equipment was not recorded.
Effect: Assets understated and stockholders' equity overstated
Explanation: An omitting of depreciation on equipment will result to an overstatement of assets and stockholders’ equity
No adjustment was made for supplies used up during the month
Effect: Assets overstated and stockholders' equity
Explanation: An omitting of supplies adjustment will result to an overstatement of assets and stockholders’ equity
An attorney has earned 1/2 of a retainer fee that was received and recorded last month. No adjustment was recorded for the amount earned.
Effect: Assets and stockholders' equity understated
Explanation: An omitting of retainer fee adjustment will result to an overstated liabilities and understated stockholders’ equity
Property taxes are paid annually. The estimated monthly amount for the taxes was not recorded.
Effect: Liabilities and stockholders equity understated
Explanation: An omitting of property tax adjustment entry will result to an understated liabilities and overstated stockholders’ equity
Wages are paid every Friday for the 5-day work week. The month ended on Monday and no adjustment was recorded.
Effect: Liabilities and stockholders' equity overstated
Explanation: An omitting of outstanding wages adjustment entry will result to an understated liabilities and overstated stockholders’ equity.
Services provided to customers on the last day of the month were not billed
Effect: Asset and stockholders' equity understated
Explanation: An omitting for bill of services provided to customers on the last day of the month will result to an understatement of assets and stockholders’ equity
A tenant paid 6 months' rent in advance when he moved in on the first day of the month. No entry was made on the last day of the month
Effect: Liabilities understated and stockholders' equity overstated
Explanation: An omitting of prepaid rent adjustment entry will result to an overstated liabilities and understated stockholders’ equity
On April 1, 2020, the City of Southern Ponds issued $5,000,000 in 4% general obligation, tax supported bonds at 101 for the purpose of constructing a new police station. The premium was transferred to a debt service fund. A total of $4,990,000 was used to construct the police station, which was completed before December 31, 2020, the end of the fiscal year. The remaining funds were transferred to the debt service fund. The bonds were dated April 1, 2020, and paid interest on October 1 and April 1. The first of 20 equal annual principal payments of $250,000 is due April 1, 2021. In addition to reporting Bonds Payable and (unamortized) Bond Premium in the government-wide Statement of Net Position, how would the bond sale be reported
Answer:
$100,000
$350,000
Explanation:
The bond sale be reported as debt service expenditures for 2020 and 2021 can be calculated as follows
The Amount would be reported as debt service expenditures for 2020
= $5,000,000 x 4% x 1/2 year
= $100,000
The amount would be reported as debt service expenditures for 2021
= $5,000,000 x 4% + $250,000
= $350,000
A bank offers 8.00% on savings accounts. What is the effective annual rate if interest is compounded semi-annually?Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))
Answer:
Effective Annual Rate = 8.1600%
Explanation:
The effective annual rate the interest rate that is adjusted for compounding over a given period of time. It is given by the formula:
[tex]r = (1+\frac{i}{n})^n -1\\where:\\r = effective\ annual\ rate\\i = nominal\ interest\ rate\ = 8.00\% = 0.08 \\n = number\ of\ compounding\ periods\ per\ year\ = 2\ (semi-annually)[/tex]
[tex]r = (1+\frac{0.08}{2})^2 -1\\r = (1\ +\ 0.04)^2 - 1\\r = (1.04)^2 - 1\\r = 1.0816 - 1\\r = 0.0816\\r = 8.1600 \%[/tex]
Delphi Company uses job-order costing. It applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, Delphi estimated that it would work 37,000 machine-hours and incur $222,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were issued for use in production, $367,000 ($345,000 direct and $22,000 indirect). b. Employee costs were incurred: direct labor, $309,000; indirect labor, $44,000; and administrative salaries, $155,000. c. Factory depreciation, $175,000. d. Selling costs, $140,000. e. Manufacture overhead was applied to jobs. The actual machine hours for the year were 35,000 hours. a. Compute the total manufacturing overhead cost applied to jobs during the year.
Answer:
Allocated MOH= $210,000
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= 222,000/37,000
Predetermined manufacturing overhead rate= $6 per machine hour
Now, we cal allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 6*35,000
Allocated MOH= $210,000
The average price for regular gasoline at U.S. pumps fell almost 4 cents in March to $2.50 a gallon. The price of crude oil dropped to $43.46 per barrel on March 17, the lowest since March 2009.
Answer: C. lower the cost of producing gasoline and increase the supply of gasoline
Explanation:
Gasoline is derived from the distillation of crude oil which means that Crude oil is the main raw material in the production of gasoline. This means that if crude oil sees a reduction in price, input costs for gasoline will decrease as well.
Producers of gasoline will take advantage of this to buy more crude oil and therefore process and make more gasoline which will increase the supply of gasoline in the market and reduce its price.
Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor receives $760,000 in exchange for satisfying the following separate performance obligations: (1) franchisees have a five-year right to operate as a Monitor Muffler retail establishment in an exclusive sales territory, (2) franchisees receive initial training and certification as a Monitor Mechanic, and (3) franchisees receive a Monitor Muffler building and necessary equipment. The stand-alone selling price of the initial training and certification is $18,200, and $578,000 for the building and equipment. Monitor estimates the stand-alone selling price of the five-year right to operate as a Monitor Muffler establishment using the residual approach.
Monitor received $89,000 on July 1, 2016, from Perkins and accepted a note receivable for the rest of the franchise price. Monitor will construct and equip Perkin's building and train and certify Perkins by September 1, and Perkin's five-year right to operate as a Monitor Muffler establishment will commence on September 1 as well.
Required:
1. What amount would Monitor calculate as the stand-alone selling price of the five-year right to operate as a Monitor Muffler retail establishment?
2. What journal entry would Monitor record on July 1, 2016, to reflect the sale of a franchise to Dan Perkins?
3. How much revenue would Monitor recognize in the year ended December 31, 2016, with respect to its franchise arrangement with Perkins? (Ignore any interest on the note receivable.)
Total revenue
Answer:
1. $163,800
2. Dr Cash $ 89,000
Dr Notes receivable $ 671,000
Cr Deferred revenue $ 760,000
3. $ 607,120
Explanation:
1. Computation of the amount that Monitor would calculate as the stand-alone selling price
Total amount of franchise agreement $760,000
Less: stand-alone selling price of training $ (18,200)
Less: stand-alone selling price of building and equip $ (578,000)
Stand-alone selling price of five-year right $163,800
2. Preparation of journal entry that Monitor would record on July 1, 2016,
Dr Cash $ 89,000
Dr Notes receivable $ 671,000
(760,000-89,000)
Cr Deferred revenue $ 760,000
3. Calculation for the amount of revenue that Monitor would recognize in the year ended December 31, 2016,
Revenue to be recognised on:
1st Sep 2021:
Training $ 18,200
Building and Equipment sale $ 578,000
31st Dec 2021:
$163,800/60 Months*4 Months $ 10,920
Total Revenue to be recognized $ 607,120
Note that five-year will give us 60 months (5*12months and September to December will give us 4 months
you can acquire an existing business for $2 million. You are uncertain about future demand. There is a 40% chance of high demand, in which case the present value of the business will be $3 million. There is a 25% chance of moderate demand, and the associated present value is $1.5 million. Finally, there is a 35% chance of low demand, in which case the present value is $1 million. Draw a decision tree for this problem. What is the expected net present value of the business
Answer:
Expected net present value of the project = $1,925,000
Explanation:
The cost of acquiring business = $2,000,000
Expected net present value of the project = High demand NPV*High demand percent + Moderate demand NPV*Moderate demand percent + Low demand NPV*Low demand percent
Expected net present value of the project = $3,000,000 *40% + $1,500,000*25% + $1,000,000*35%
Expected net present value of the project = $1,200,000 + $375,000 + $350,000
Expected net present value of the project = $1,925,000
Conclusion: The cost of acquiring business is more than expected net present value, it is advisable not to invest in the project.
Were you surprised to learn how much companies focus on the teen market? Explain.
Answer:
Yes, a large percentage of consumers are influenced by people who are present on the internet, who are mostly younger people. In order to generate income, advertisements for young people are becoming less and less advertising look like.
For this reason, advertising pieces should always aim to entertain and inform, only to later sell. The experience with advertising content should be positive.
The teen audience may have many different tastes, but there is a high probability that everyone will use a cell phone. The device is part of the daily lives of young people and it is through it that teenagers communicate, consume content, and even shop.
We sell to a customer paying with Visa and the fee is 2%. Part of the transaction would include a debit to:
Answer:
there are no available options, but the complete journal entry to record a credit card sale is:
Dr Cash account 98% of sale
Dr Credit card fees 2% of sale
Cr Sales revenue 100% of sale
Explanation:
Since VISA payments are automatic, you can debit cash directly. There is no need to debit accounts receivable and then once the payment is confirmed, debit cash. Some credit cards do not pay automatically, and in those cases you should debit accounts receivable.
Instead of credit card fees, some people use credit card discount, or credit card expense, but all these accounts are basically the same. They are all expense accounts.
When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due to:_________
a. A predictable amount based on the past prices.
b. A component based on new information unrelated to past prices.
c. The security's risk.
d. The risk free rate.
e. None of the above.
Answer:
e. None of the above.
Explanation:
When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due due to new information related to the stock". This is because any new information on stock which is unrelated to stock prices will lead to an increase/decrease in the stock price over a period of time.
How are the four areas of operations control interrelated?
Nash Company reported 2020 net income of $152,900. During 2020, accounts receivable increased by $17,160 and accounts payable increased by $9,582. Depreciation expense was $48,000. Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) NASH COMPANY Cash Flow Statement choose the accounting period select an opening section name select an item $enter a dollar amount Adjustments to reconcile net income to select a subsection name select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a subtotal of the adjustments select a closing section name $enter a total amount for the section
Answer:
$112,478
Explanation:
Cash flows from operating activities
Net income $152,900
Adjustments to reconcile net income
Depreciation expense $48,000
Increase in accounts payable $9,582
Increase in accounts receivable $ (17,160) $40,422
Net cash provided by operating activities $112,478
briefly explain goals of business
Your grandpa doesn't trust "young 'uns" so you are set to inherit a $1,000,000 trust fund on your 50th birthday. Your Grandpa also doesn't like banks so he has buried the cash somewhere on his 40-acre farm in a location that will be revealed to you by his lawyer since Grandpa will not be around when you turn 50. If you could possibly get your hands on it now (when you are 20), you could put it in a bank at 6% annual interest. If you were able to dig up the money now, how much would you have when you turn 50?
Answer:
FV= $5,743,491.17
Explanation:
Giving the following information:
Present value (PV)= $1,000,000
Number of periods (n)= 30 years
Annual interest= 6% = 0.06
To calculate the future value (FV), we need to use the following formula:
FV= PV*(1+i)^n
FV= 1,000,000*(1.06^30)
FV= $5,743,491.17
At the beginning of the year, Bryers Incorporated reports inventory of $6,100. During the year, the company purchases additional inventory for $21,100. At the end of the year, the cost of inventory remaining is $8,100. Calculate cost of goods sold for the year.
Answer:
$19,100
Explanation:
The cost of goods sold refers to the actual cost, expended in the manufacturing of goods or products that is produced and then sold in a given period. It comprises all direct costs expended in the manufacturing of goods.
With regards to the above, the cost of goods sold for the year is computed as;
= $6,100 beginning inventory + $21,100 purchases for the period - $8,100 closing inventory
= $19,100
Therefore, the cost of goods sold for the year is $19,100
When determining the value of a firm, which of the following statements is true? Investors are risk averse. Other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks. Investors love risk. Other things being equal, they prefer to pay more for stocks that are riskier and have uncertain cash flows. Investors are risk neutral. Other things being equal, they prefer to pay more for stocks that are less risky and have uncertain cash flows.
Answer:
Investors are risk averse. Other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks
Explanation:
A risk averse investor is an investor that would want lower returns from investments would lower risks
A risk neutral investor in neutral towards risks. They can invest in projects with high or low risks
A risk loving investor in an investor who prefers a person prefers risky return over guaranteed return
is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 5 percent? (Click to select) Requirement 2: (a) If the discount rate is 23 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 23 percent?
Answer and Explanation:
1A. For investment X, given 6% discount rate, 6700 PMT, N= 9 years
Present value of investment X= 6700* PVIF using 6%, 9 years
= $45751.34
For investment Y, given 6% discount rate, 9200 PMT, N= 5 years
Present value of investment Y =9200*PVIF using 6%, 9 years
=$38753.75
1B. Investment X from the above has higher present value
2A. For investment X, given 22% discount rate, 6700 PMT, N = 9 years
Present value of investment X
=6700*PVIF using 22% ,9 years
= $25368.11
For investment Y, given 22% discount rate, 9200 PMT, N = 5 years
Present value of investment X
=9200*PVIF using 22% ,N = 5 years
= $26345.49
2B. Investment Y from the above has higher present value.
Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $92,000?
a. $27,960.b. $62,000.c. $57,960.d. $4,040.
Answer:
Net income= $27,960
Explanation:
Giving the following information:
Fixed costs= $30,000
contribution margin ratio= 0.63
Sales= $92,000
First, we need to calculate the total contribution margin:
Total contribution margin= 92,000*0.63= 57,960
Now, the net income:
Net income= 57,960 - 30,000
Net income= $27,960
Wyle Co. has $3.9 million of debt, $1 million of preferred stock, and $2.1 million of common equity. What would be its weight on preferred stock
Answer:
Weight of Preferred stock = 0.1428571429 or 14.28571429% rounded off to 14.29%
Explanation:
The capital structure of a business is made up of at least one or at most all of the following components namely Debt, Preferred Stock and Common Equity. The ratio in which each of these components form the capital structure might differ from business to business. The weightage of each component in the capital structure can be calculated by dividing the market value of each component by the sum of the market value of all the components.
Weight of a component = Market Value of component / Sum of market value of all components
Weight of Preferred stock = 1,000,000 / (3,900,000 + 1,000,000 + 2,100,000)
Weight of Preferred stock = 0.1428571429 or 14.28571429% rounded off to 14.29%
Q 20.27: Liberty Bicycles currently sells unassembled bikes for $240 each. The variable production costs for each bike are $35 and the fixed production costs are $72. Liberty is thinking about selling the bikes fully assembled for $300 each. The variable costs for assembling one bike will be $18 and the fixed costs will be $31. Given these figures, Liberty will increase its net income per unit by ________ if it opts to assemble the bikes.
Answer:
$11
Explanation:
Find the incremental effect on net income of assembling the bikes as follows :
Incremental analysis for assembling the bikes per unit
Sales ( $300 - $240) $60
Less incremental costs :
Variable costs ($18)
Fixed production costs ($31)
Incremental Income/(loss) $11
Conclusion
Thus Liberty will increase its net income per unit by $11 if it opts to assemble the bikes.
Cellular Access Inc., is a cellular telephone service provider that reported net operating profit after tax (or unlevered net profit) of $250 million for the most recent fiscal year. The firm had depreciation expenses of $100 million, capital expenditures of $200 million, no interest expense, and an income tax rate of 30%. Working capital increased by $10 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year.
Answer: $65 million
Explanation:
The Free Cash Flow will be calculated as:
= EBIT(1-t) + Dep & Amortisation- Changes in Working Capital- Capital Expenditure
= 250(1-30%) + 100 - 200 - 10
= 250(0.7) + 100 - 200 - 10
= 175 + 100 - 210
= $65 million
Cycle Time and Velocity In the first quarter of operations, a manufacturing cell produced 85,000 stereo speakers, using 20,000 production hours. In the second quarter, the cycle time was 10 minutes per unit with the same number of production hours as were used in the first quarter. Required: 1. Compute the velocity (per hour) for the first quarter. If required, round your answer to two decimal places. fill in the blank 1 units per hour 2. Compute the cycle time for the first quarter (minutes per unit produced). If required, round your answer to two decimal places. fill in the blank 2 minutes per unit 3. How many units were produced in the second quarter
Answer:
1. Velocity per hour= 4.35 units per hour
2. Cycle time=0.24
3. Units produced= 120,000 units
Explanation:
1.Computation for the velocity (per hour) for the first quarter.
Velocity per hour=85,000 units / 20,000 hour
Velocity per hour= 4.35 units per hour
2.Compution for the cycle time for the Frst quarter
Cycle time =20,000 hour/85,000 units
Cycle time=0.24
3. Calculation for How many units were produced in the second quarter
Units produced =60 minutes / 10 minutes per units * 20,000 Hours
Units produced= 120,000 units
In 2020, Elbert Corporation had net cash provided by operating activities of $531,000, net cash used by investing activities of $963,000, and net cash provided by financing activities of $585,000. At January 1, 2020, the cash balance was $333,000. Compute December 31, 2020, cash.
Answer:
$486,000
Explanation:
Elbert Corporation
Cashflow Statement for the year ended December 31, 2020.
Cash flow from Operating Activities
Net cash provided by operating activities $531,000
Cash flow from Investing Activities
Net cash used by investing activities ($963,000)
Cash flow from Financing Activities
Net cash provided by financing activities $585,000
Movement during the year $153,000
Beginning Cash and Cash Equivalent $333,000
Ending Cash and Cash Equivalent $486,000
Therefore, December 31, 2020, cash balance is $486,000
Kent Manufacturing produces a product that sells for $64.00 and has variable costs of $35.00 per unit. Fixed costs are $348,000. Kent can buy a new production machine that will increase fixed costs by $20,500 per year, but will decrease variable costs by $4.50 per unit.
Required:
Compute the contribution margin per unit if the machine is purchased.
Answer:
The contribution margin per unit is $33.50
Explanation:
The contribution margin per unit in the case when the machine is purchased is shown below:
= Selling price per unit - variable cost per unit
= $64 - ($35 - $4.50)
= $64 - $30.50
= $33.50
hence, the contribution margin per unit is $33.50 and the same is to be considered
We simply applied the above formula
[Same investments as the prior question] Suppose two local start-ups are raising funding by issuing shares of equity at $10,000 per share. One start-up is a whiskey distillery; the other is a beer brewery. You estimate the expected returns on your investment to be 50% over five years in both cases. You also believe that the likelihood of being paid out $20,000 per share is greater with the distillery than with the brewery. Suppose now that you hold a portfolio of many other risky assets, and that this would be your N 1 investment. Which investment do you prefer to make, the distillery or the brewery
Answer:
you should purchase the brewery's stock
Explanation:
First of all, as investors we should always try to maximize our returns while avoiding risks. It is really hard to balance both, but we must compare stocks to see which may represent a higher gain while posing the lesser or same risk.
Initial investment in each = $10,000 (equal for both)expected returns over 5 years = $5,000 (equal for both)but there is a higher possibility of the distillery's stock being more valuable, and that makes a difference.Both stocks seem equally risky, but they are not. When you calculate expected returns, you multiply the possible returns by their probability. I'm not sure how they calculated the expected returns of the above stocks, but the following can help you understand my point:
stock B return probability expected return
great 100% 25% 25%
normal 50% 50% 25%
bad 0% 25% 0%
total 100% 50%
stock D return probability expected return
great 100% 30% 30%
normal 50% 40% 20%
bad 0% 30% 0%
total 100% 50%
Both stocks have the same expected return, but stock B is less risky because the chance of being a bad investment is lower.
Waterway Company sold 10,100 Super-Spreaders on December 31, 2020, at a total price of $1,050,400, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $535,300. The assurance warranties extend for a 2-year period and are estimated to cost $37,000. Waterway also sold extended warranties (service-type warranties) related to 1,800 spreaders for 2 years beyond the 2-year period for $10,800. Given this information, determine the amounts to report for the following at December 31, 2020: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash. Amounts Reported in Income Sales revenue $ Warranty Expense Amounts Reported on the Balance Sheet Unearned Service Revenue $ Cash Warranty Liability
Answer:
Amounts Reported in Income
Particulars Amount
- Sales revenue $1,050,400
- Warranty expenses $37,000
Amounts Reported on the Balance Sheet
Particulars Amount
- Unearned service revenue $10,800
- Cash ($1,050,400 + $10,800) $1,061,200
- Warranty Liability $37,000
Which of the following statements are true? (Check all that apply.) A. Accounting systems generally consist of several subsystems, each designed to process a particular type of transaction. B. Most mobile devices do not need to be tracked and monitored as their loss represents minimal exposure. C. Supervision is especially important in organizations without responsibility reporting or an adequate segregation of duties. D. All system transactions and activities should be recorded in a log that indicates who accessed what data and when. E. Customer relationship management (CRM) software includes budgets, schedules, and standard costs; reports comparing actual and planned performance; and procedures for investigating and correcting significant variances.
Answer:
A. Accounting systems generally consist of several subsystems, each designed to process a particular type of transaction.
C. Supervision is especially important in organizations without responsibility reporting or adequate segregation of duties
Explanation:
A. Indeed, because the accounting system consists of several subsystems, such as data systems, the workforce, the procedures and instructions, and software with each designed to process a particular type of transaction.
B. When an organization doesn't assign its staff their specific responsibilities it then becomes especially important to supervise the employees, because failing to do so may result in low worker productivity.
Jake owns a company called Boat Builders, LLC and one evening he took several of his employees out after work to a bar. After eating and drinking for several hours Jake invited them back to the Boat Builders premises so he and some of the employees could show off a boat they’d been working on. After arriving at Boat Builders they all continued to drink and two of the employees, Tyler and Mark, got into an argument. When Tyler went to use the bathroom Mark attacked him from behind causing him to lose consciousness and break a tooth. Mark made light of it but gave Jake a menacing look so Jake dropped it and went to check on Tyler. Tyler sat up and asked what happened and Jake told him that Mark had attacked him from behind. About an hour passed by during which time Jake went out to his car and got his phone so he could play music for everyone. After an hour, Tyler and Mark began to argue again and they walked outside into the Boat Builders parking lot where Mark attacked Tyler again. Mark left and was later arrested for aggravated battery. Tyler regained consciousness after 10 minutes and drove home even though he was badly injured.
Does Tyler have a negligence claim against Boat Builders? Why or why not? A complete answer will be at least 5 sentences and mention critical facts.
Answer:
Yes, because Boat Builders, LLC failed to exercise a reasonable standard of care at their premises.
Explanation:
Remember, we are told, "Jake... invited them back to the Boat Builders premises," meaning they (Boat Bilders, LLC) had a duty of care responsibility toward all of his employees present.
Note we are told, "Mark made light of it but gave Jake a menacing look so Jake dropped it," this was a moment that shows Jake's negligence because as the owner of Boat Builders he had a duty of care to ensure no one is hurt without their own fault within their premises (which included their "parking lot").
If a firm averages $2,000 in daily credit sales and offers 60-day terms, the average accounts receivable balance will be $120,000.
a. True
b. False
Answer:
a. True
Explanation:
The computation of the average accounts receivable balance is shown below:
= Daily credit sales × day terms
= $2,000 × 60 days terms
= $120,000
We simply multiplied the average amount with the day term so that the average account receivable balance could come
Hence, the given statement is true
Therefore the correct option is a.
Yoshi Co.'s 12/31/2020 inventory on a FIFO basis was $980,000. The following information is available: Estimated selling price is $1,020,000; Estimated cost of disposal is $40,000; Normal profit margin is $120,000; and Current replacement cost is $900,000. At 12/31/2020, assuming Yoshi uses the loss method, what amount of loss should Yoshi record from applying LCM
Answer:
Yoshi Co.
The amount of loss that Yoshi Co. should record from applying LCM (the lower of Cost or Market price) is:
$40,000
Explanation:
a) Data and Calculations:
FIFO inventory on 12/31/2020 = $980,000
Current replacement cost = $900,000
Net realizable value = $980,000 ($1,020,000 - $40,000)
Normal profit margin = $120,000
Loss to be recognized based on current replacement cost = FIFO purchase cost minus Current replacement cost
= $80,000 ($980,000 - $900,000)
b) Under the US GAAP (generally accepted accounting principles) of prudence and conservatism, the loss of $80,000 must be recognized in the current period, since the inventory will be booked at $900,000, its current replacement cost, which is lower than the FIFO purchase cost of $980,000.
What benefits do customers receive in return for the sacrifice they make when buying a membership at Planet Fitness?
Answer:
Customers receive the following benefits in return for the price they pay when they buy membership at Planet Fitness:
a) Fitness training
b) Physical exercise
c) Relaxation and comfort
d) Clean and safe environment and conducive atmosphere
e) the friendly and courteous staff is a bonus
Explanation:
Planet Fitness operates fitness centers and clubs around the world under franchises. Planet Fitness has adequate and clean cardio machines, free weights of up to 80 lbs., curl bars, and other strength training equipment and accessories. The average gym user is offered abundant, 5-star, and world-class Cardio equipment and services.