Answer:
$210,000
Explanation:
Cost of Borrowings (Interest expense) = Amount of Borrowings * Rate of Interest = $3,000,000 * 10% = $300,000
Tax on Borrowings = Cost of Borrowings * Rate of tax = $300,000 * 30% = $90,000
Net Cost of Borrowings = Cost of Borrowings - Tax on Borrowings
Net Cost of Borrowings = $300,000 - $90,000
Net Cost of Borrowings = $210,000
So, the annual net cash cost of this borrowing if the income tax rate is 30% is $210,000.
Cheryl is single, has one child (age six), and files as head of household during 2020. Her salary for the year is $19,500. She qualifies for an earned income credit of the following amount. a.$3,584. b.$3,557. c.$3,530. d.$0.
Answer: $3,557
Explanation:
Maximum amount of credit for 2020 is $3,584.
The income credit is calculated by:
= Maximum amount - (Earnings for the year - Minimum phase out range for single person with one child) * phase out percentage.
= 3,584 - (19,500 - 19,330) * 15.98%
= $3,557
Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $21,600 for March and $70,700 for April. What are the budgeted cash receipts from sales on account for April
Answer:
Total cash collection April= $33,875
Explanation:
Giving the following information:
Collects 25% of its sales on account in the month of the sale and 75% in the month following the sale.
Sales on account:
Marc=$21,600
April= $70,700
Cash collection April:
Sales in account from March= (21,600*0.75)= 16,200
Sales in account from April= (70,700*0.25)= 17,675
Total cash collection April= $33,875
Preventive maintenance of a system involves ________. Select one: a. making enhancements to improve processing performance or interface usability b. making changes to an information system to repair flaws in the design c. making changes to a system to reduce the chance of future system failure d. making changes to an information system to accommodate changing business needs e. adding desired, but not necessarily required, system features
Answer:
c
Explanation:
What do you think happens to the price of an object as it goes through a large number of intermediaries?
If a person owes several people money, that person can give each of the creditors part of the total owed. If this arrangement is agreed to by all creditors, it is called
Answer:
a composition of creditors
Explanation:
A loan can be defined as an amount of money that is being borrowed from a lender and it is expected to be paid back at an agreed date with interest.
Generally, the financial institution such as a bank lending out the sum of money usually requires that borrower provides a collateral which would be taken over in the event that the borrower defaults (fails) in the repayment of the loan.
A credit score can be defined as a numerical expression between 300 - 850 that represents an individual's financial history and credit worthiness. Therefore, a credit score determines the ability of a borrower to obtain a loan from a lender.
This ultimately implies that, the higher your credit score, the higher and better it is to obtain a loan from a potential lender. A credit score ranging from 670 to 739 is considered to be a good credit score while a credit score of 740 to 799 is better and a credit score of 800 to 850 is considered to be excellent.
Hence, lenders look at the credit score of a loan applicant so as to ensure that he or she is financially responsible and would be able to repay the loan at the agreed upon date.
A composition of creditors can be defined as a type of arrangement in which an individual owing (debtor) several people money gives each of the creditors part of the total amount of money being owed. Also, for this arrangement to be valid, it must be agreed to by all creditors.
Explain where each of the following items would appear on a multiple-step income statement.
a. Gain on disposal of plant assets
b. Cost of goods sold
c. Depreciation expense
d. Sales returns and allowances
Answer:
a. Gain on disposal of plant assets will appear under Other Revenues and Gains.
b. Cost of goods sold will still appear under Cost of Goods Sold.
c. Depreciation expense will appear under Operating Expense.
d. Sales returns and allowances will appear under Sales Revenue.
Explanation:
A multiple-step income statement is an income statement in which the net income reported on the bottom line is calculated using multiple subtractions.
Each of the following items would appear on a multiple-step income statement as explained below.
a. Gain on disposal of plant assets
This will appear under Other Revenues and Gains.
Other Revenues and Gains are revenues from auxiliary operations and gains unrelated to the company's operations, which are reported in the non-operating activities section of the income statement. The following are some of them: Interest from receivable, marketable securities, Gains on Disposal of Plant Assets, etc.
b. Cost of goods sold
This will still appear under Cost of Goods Sold.
Cost of Goods Sold are the direct costs of manufacturing the commodities that a business sells. This figure covers the direct cost of the materials and labor that went into making the good. It does not include indirect costs like distribution and sales force expenditures.
c. Depreciation expense
This will appear under Operating Expense.
Operating Expense is a cost that a company incurs as part of its routine operations. Examples of this include rent, marketing, payroll, insurance, monies allocated for research and development, depreciation expense, and among others.
d. Sales returns and allowances
These will appear under Sales Revenue.
This is the amount of money a corporation makes through selling things or providing services minus sales returns allowances and sales discounts.
The objectives of competition policy
Answer:
rticle 1] This Act, by prohibiting private monopolization, unreasonable restraint of trade and unfair trade practices, by preventing excessive concentration of economic power and by eliminating unreasonable restraint on production, sale, price, technology and the like, and all other unjust restriction of business
g Suppose a bond is priced at $1035, has 12 years remaining until maturity, and has a 12% coupon, paid monthly. What is the amount of the next interest payment (in $ dollars)
Answer:
$10
Explanation:
As the bond is priced at $1035, the par value is $1000.
Calculation of the amount of the next interest payment
= Par value * Coupon rate/12
= $1000 * 12%/12
= $1000 * 1%
= $10
So, the amount of the next interest payment is $10.
Charging a license fee for access to a fishery will ... a) result in no change in total harvest levels. b) result in harvest levels equal to the maximum sustained yield. c) reduce harvest levels towards the economic optimum. d) result in harvest levels at the open-access equilibrium. e) result in increased entry into the fishery.
Answer:
c) reduce harvest levels towards the economic optimum.
Explanation:
An individual transfer rights (ITR) system can be defined as a system in which the government of a particular country gives each fishing vessel or owner a specific percentage of the total fish allowable to be caught each year.
Licensing can be defined as a strategic business approach, which involves a company giving permission (license) to another company so it has the right to produce or manufacture its products, usually for a specific amount of money.
When a license fee is charged by a licensor for access to a fishery, it will significantly reduce harvest levels towards the economic optimum, where neither a smaller nor a larger factor would yield any form of advantage.
This ultimately implies that, a license fee would serve as a limiting factor that prevents or limits the number of people going into fish farming and as a result of this, the total amount of fish that would be harvested would be smaller.
Slinky established a petty cash fund for $400. Slinky purchased 50 units of inventory from a supplier on credit. The goods cost $40 each and the credit terms were 5/10, n/30. The shipping costs, paid in cash by Slinky, were $100 under the terms FOB Shipping. Slinky received the inventory on July 3rd. Slinky returned 5 units of inventory from the July 3rd transaction to the supplier. Slinky sold 15 of the units purchased on July 3rd for $55 each to customers for cash. Slinky accepted a return of one unit of inventory from a July 6th customer for a cash refund. Slinky paid the supplier for one-half of the inventory purchased on July 3rd. Be sure to account for any returns and/or purchase discounts. Slinky used $40 out of petty cash to pay for coffee meeting (coffee expense). Slinky purchased 10 units of inventory from a supplier on credit. The goods cost $25 each and no credit terms were granted. The shipping costs were $50 under the terms FOB destination and Slinky received the inventory on November 2nd Slinky paid the remaining balance owed to the supplier from the July 3rd transaction. Slinky replenished petty cash.
Required:
Prepare Journal Entries for July
Answer:the answer is
Explanation:
i have 400 and the 50 units
In a perfectly competitive market, all producers sellidentical goods or services. Additionally, there aremany buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are pricemakers . True or False: The market for public utilities, such as gas and electricity, exhibits the two primary characteristics that define perfectly competitive markets. True False
Answer:
1. True
2. False
Explanation:
1. Indeed, we can assert that for a market to be termed as perfectly competitive it must have not just one seller or buyer but many sellers and buyers. Hence, as for buyers, they are able to bargain the price they are willing to buy, while sellers are also set the price for their goods/products.
2. Since in most economies the price of public utilities, such as gas and electricity, are determined by the government not the average seller/buyer, it would be false to say that they exhibited characteristics that define perfectly competitive markets.
ALTOID CO. Balance Sheet At December 31, 2021 Assets: Cash $ 220 Short-term investments 550 Accounts receivable (net) 650 Inventory 800 Property, plant, and equipment (net) 1,150 Total assets $ 3,370 Liabilities and shareholders' equity: Current liabilities $ 800 Long-term liabilities 950 Common stock 500 Retained earnings 1,120 Total liabilities and shareholders' equity $ 3,370 Selected 2021 income statement information for Altoid Co. includes: Net Sales $ 8,400 Operating expenses 7,350 Income before interest and tax 1,050 Interest expense 100 Income tax expense 285 Net income $ 665 Required: Compute the following financial statement ratios for 2021: Altoid Co.'s current ratio. (Round your answer to 2 decimal places.)
Answer:
3.4
Explanation:
Current assets = Cash + Short-term investments + Accounts receivable (net) + Inventory
= $220 + $550 + $800 + $1,150
= $2,720
Current ratio = Current assets / Current liabilities
Current ratio = $2,720 / $800
Current ratio = 3.4
Assume that interest rate parity (IRP) exists. You expect that the one-year nominal interest rate in the U.S. is 7%, while the one-year nominal interest rate in Australia is 11%. The spot rate of the Australian dollar is $0.60. You will need 10 million Australian dollars in one year. Today, you purchase a one-year forward contract in Australian dollars. How many U.S. dollars will you need in one year to fulfill your forward contract
Answer:
US $5,784,000
Explanation:
As per interest rate parity, forward rate = Spot rate*(1+Interest rate U.S.)/(1+interest rate Australia)
= 0.60*(1.07)/(1.11)
= 0.5784 /A$
Australian Dollars required in one year = 10,000,000
U.S. Dollars required = 10,000,000 * 0.5784 /A$
U.S. Dollars required = $5,784,000
So, the number of U.S. dollars you will need in one year to fulfill the forward contract is 5,784,000.
The primary purpose of a data warehouse is to _____________. Combine strategic information Organize departments Interface between the computer and employees All of these
Answer:
Combine strategic information
Explanation:
A data warehouse can be defined as a large collection of data gathered or collected from various sources within an organization and managed to provide a guide for making decisions by the management.
This ultimately implies that, a data warehouse avails the management of an organization the ability to collect, analyze and manage data in order to gain meaningful insights and aid in the decision-making process.
Hence, the primary purpose of a data warehouse is to help or avail a business firm the ability to combine strategic information with respect to the operations of the business.
Su Industries has international subsidiaries in Asia. These subsidiaries enter into transactions in both the US dollar and local currencies. During the year, Su Industries reported a remeasurement loss of $55,000 and a translation gain of $36,000. As a result of these conversions, how much would Su Industries report in accumulated other comprehensive income (AOCI) at year end
Answer: Increase / Gain of $36,000
Explanation:
Remeasurement loss, which arises from conversions of the various currencies used by the company to a functional currency, goes to the Income statement and is subtracted from the Net income.
Translation gains on the other hand, are added to the Other Comprehensive income.
The other comprehensive income will therefore increase by the translation gain of $36,000.
Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (30,000 units) $ 240,000 $ 8.00 Variable expenses 150,000 5.00 Contribution margin 90,000 $ 3.00 Fixed expenses 46,000 Net operating income $ 44,000 Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 11%? 2. What is the revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 21%? 3. What is the revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 7%? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 40 cents per unit, and the number of units sold decreases by 9%?
Answer:
Miller Company
1. The revised net operating income if unit sales increase by 11%:
= $ 53,900
2. The revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 21%:
= $ 50,840
3. The revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 7%:
= $ 51,680
4. The revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 40% per unit, and the number of units sold decreases by 9%:
= $ 3,140
Explanation:
a) Data and Calculations:
Total Per Unit
Sales (30,000 units) $ 240,000 $ 8.00
Variable expenses 150,000 5.00
Contribution margin 90,000 $ 3.00
Fixed expenses 46,000
Net operating income $ 44,000
1. The revised net operating income if unit sales increase by 11%:
Unit sales = 33,300 (30,000 * 1.11)
Total Per Unit
Sales (33,300 units) $ 266,400 $ 8.00
Variable expenses 166,500 5.00
Contribution margin 99,900 $ 3.00
Fixed expenses 46,000
Net operating income $ 53,900
2. The revised net operating income if the selling price decreases by $1.20 per unit and the number of units sold increases by 21%:
Selling price = $6.80 ($8.00 - $1.20)
Unit sales = 36,300 (30,000 * 1.21)
Total Per Unit
Sales (36,300 units) $ 246,840 $ 6.80
Variable expenses 150,000 5.00
Contribution margin 96,840 $ 3.00
Fixed expenses 46,000
Net operating income $ 50,840
3. The revised net operating income if the selling price increases by $1.20 per unit, fixed expenses increase by $9,000, and the number of units sold decreases by 7%:
Selling price = $9.20 ($8.00 + $1.20)
Fixed expenses = $55,000 ($46,000 + $9,000)
Unit sales = 27,900 (30,000 * (1 - 0.07)
Total Per Unit
Sales (27,900 units) $ 256,680 $ 9.20
Variable expenses 150,000 5.00
Contribution margin 106,680 $ 3.00
Fixed expenses 55,000
Net operating income $ 51,680
4. The revised net operating income if the selling price per unit increases by 10%, variable expenses increase by 40% per unit, and the number of units sold decreases by 9%:
Selling price = $8.80 ($8.00 * 1.1)
Variable expenses = $7.00 ($5.00 * 1.4)
Unit sales = $27,300 (30,000 * (1 - 0.09)
Total Per Unit
Sales (27,300 units) $ 240,240 $ 8.80
Variable expenses 191,100 7.00
Contribution margin 49,140 $ 3.00
Fixed expenses 46,000
Net operating income $ 3,140
A large scale pharmaceutical manufacturing company estimates, based on a shipping fee of $1000 per order, that they can optimally balance inventory holding costs and shipping costs for one of their frequently used chemicals if they receive shipments of this chemical at an average rate of 4.5 times per year. The annual demand is 6500 tons. Suppose that they wish to instead receive shipments every month in order to reduce the working capital requirements of holding inventory.
(a) What shipping fee should they negotiate with the supplier?
(b) Based on this new shipping fee, what would be the reduction in annual holding cost as compared to their prior situation? Assume that they operate optimally.
Answer:
a. The shipping fee that they should negotiate with the supplier is:
= $375 per shipment
b. Based on this new shipping fee, the reduction in annual holding cost will be 37.5%
Explanation:
a) Data and Calculations:
Shipping fee per order = $1,000
Average shipments received per year = 4.5 times
Total shipping fee per year = $4,500 (4.5 * $1,000)
Annual demand = 6,500 tons
If shipment is changed to 12 times per year, the shipping fee that they should negotiate with the supplier = $4,500/12 = $375 per shipment
Holding cost will reduce by 37.5% (4.5/12 * 100)
Pompeii, Inc., has sales of $54,500, costs of $24,800, depreciation expense of $2,700, and interest expense of $2,450. If the tax rate is 22 percent, what is the operating cash flow, or OCF
the interest equals 47009 because the numbers added together
The delivery of the underlying asset is seldom made in forward contracts while the delivery is usually made in futures contracts.
a. True
b. False
Answer:
a. True
Explanation:
In the case when there is a delivery of an asset so it would be very rare that it should be made in the forward contract as the delivery of an assets should be made in the future contract. As the forward contract settles at the time when the agreement is closed while the future contract deals with the terms and conditions related to the trading
So the given statement is true
Brief Exercise 18-5 a1-a2 Crane Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 19,960 $46,020 August 35,488 53,232 September 39,924 60,995 October 24,398 48,965 November 44,360 82,620 December 42,142 68,758 (a1) Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per unit
Answer:
A.$1.50 per units
B. $16,080
Explanation:
Computation for the variable cost per unit using the high-low method.
Using this formula
Variable cost per unit= High activity cost -Low Activity cost /High activity cost -Low Activity cost
Let plug in the formula
Variable cost per unit=(82,620-$46,020)/(44,360-19,960)
Variable cost per unit=$36,600/$24,400
Variable cost per unit= $1.5 per units
Therefore the variable cost per unit using the high-low method is $1.50 per units
B. Computation for the fixed cost element unit using the high-low method.
Fixed cost element=82,620-(1.50*44,360)
Fixed cost element=82,620-66,540
Fixed cost element=$16,080
Therefore the fixed cost element unit using the high-low method is $16,080
Ten years ago, Lucas Inc. earned $0.50 per share. Its earnings this year were $2.20. What was the growth rate in earnings per share (EPS) over the 10-year period?
Answer:
they will earn 5$ eps over the 10 year period
Explanation:
hope it helps
Oriole Company purchased machinery with a list price of $92000. They were given a 5% discount by the manufacturer. They paid $600 for shipping and sales tax of $4100. Oriole estimates that the machinery will have a useful life of 10 years and a residual value of $30000. If Oriole uses straight-line depreciation, annual depreciation will be
Answer:
Annual Depreciation $6,210
Explanation:
The computation of the annual depreciation using straight-line depreciation method is given below;
Price of Machine $92000
Less: Discount at 5% -$4,600
Add: Shipping Charges $600
Add: Sales Tax $4,100
Cost of Machine $92,100
Less: Residual Value -$30,000
Depreciation Basis $62,100
Divided by Useful Life 10 years
Annual Depreciation $6,210
3. Which of the following is NOT something you need to find out about in career planning?
a. the age of workers in an occupation
b. wages paid
c. education and training required
d. duties performed
Answer:
D
Explanation:
Unearned revenue: the company collected 24,000 rent in advanced on September 1, debiting cash and crediting unearned rent revenue. The tenant was paying 12 months rent in advance and occupancy began september 1.
Answer:true
Explanation:
true
Sun Co. was constructing fixed assets that qualified for interest capitalization. Sun had the following outstanding debt issuances during the entire year of construction: $6,000,000 face value, 8% interest $8,000,000 face value, 9% interest None of the borrowings were specified for the construction of the qualified fixed asset. Average expenditures for the year were $1,000,000. What interest rate should Sun use to calculate capitalized interest on the construction
Answer:
the interest rate that should be determined the capitalized interest is 8.57%
Explanation:
The computation of the interest rate that should be determined the capitalized interest is shown below;
= $6,000,000 ÷ ($6,000,000 + $8,000,000) × 0.08 + $8,000,000 ÷ ($6,000,000 + $8,000,000) × 0.09
= 0.0857
= 8.57%
Hence, the interest rate that should be determined the capitalized interest is 8.57%
The same would be considered
If the number of employed persons in a country equals 27 million, the number of unemployed persons equals 3 million, and the number of persons over age 16 in the population equals 35 million, the unemployment rate equals:
Answer:
26.67%
Explanation:
Employed person = 27 million
Unemployed person = 3 million
Total labour force = Number of people employed + Number of people unemployed
Total labour force = 27 million + 3 million
Total labour force = 30 million
Unemployment rate = Number of people unemployed + Remaining people / Total labour force
Unemployment rate = 3 million + 5 million / 30 million
Unemployment rate = 8/30
Unemployment rate = 0.2666667
Unemployment rate = 26.67%
Hence, the unemployment rate equals 26.67%
Analyzing Financial Statement Effects of Bond Redemption Dechow, Inc., issued $750,000 of 8%, 15-year bonds at 96 on July 1, 2009. Interest is payable semiannually on December 31 and June 30. Through June 30, 2016, Dechow amortized $9,558 of the bond discount. On July 1, 2016, Dechow retired the bonds at 101. Required a. Prepare journal entries to record the issue and retirement of these bonds. (Assume the June interest expense has already been recorded.)
Answer:
Dechow, Inc.
Journal Entries:
July 1, 2009: DebitCash $720,000
Debit Bonds Discount $30,000
Credit 8% Bonds Payable $750,000
To record the issuance of a 15-year bonds at 96 with semiannual interest payments.
July 1, 2016 Debit Bonds Payable $750,000
Debit Bonds Retirement Loss $27,942
Credit Unamortized discount $20,442
Credit Cash $757,500
To record the retirement of the bonds at 101.
Explanation:
a) Data and Analysis:
July 1, 2009: Cash $720,000 Bonds Discount $30,000 8% Bonds Payable $750,000 15-year bonds at 96 on July 1, 2009 with semiannual interest payments.
July 1, 2016 Bonds Payable $750,000 Bonds Retirement Loss $27,942 Unamortized discount $20,442 Cash $757,500 retired the bonds at 101.
Unamortized discount:
Discount on the bonds = $30,000 ($750,000 - $720,000)
Amortized bonds discount (9,558)
Unamortized bonds discount $20,442
A new accountant, Costa Goodsold, put together a preliminary version of Medina Co.'s financial statements. Medina's Net Income was $500, its Depreciation Expense was $100, and its Cash Flow from Operations was $70. The CEO found an error that Costa made in computing straight-line Depreciation Expense, which should have been $50. What is Medina's Cash Flow from Operations after fixing this mistake
Answer:
the cash flow from operation after fixing the mistake is $20
Explanation:
The computation of the cash flow from operation after fixing the mistake is as follows;
Cash flow from operations $70
Less; Depreciation expense -$100
Add: Depreciation expense $50
Net Cash flow from operations $20
Hence, the cash flow from operation after fixing the mistake is $20
The same is to be considered and relevant
Bill operates a proprietorship using the cash method of accounting, and this year he received the following: $250 in cash from a customer for services rendered this year a promise from a customer to pay $170 for services rendered this year tickets to a football game worth $175 as payment for services performed this year a check for $200 for services rendered this year that Bill forgot to cash How much income should Bill recognize on Schedule C
Answer:
$625
Explanation:
Calculation to determine How much income should Bill recognize on Schedule C
Using this formula
Recognize income=Cash Received +Football tickets+Check
Let plug in the formula
Recognize income=$250+$175+$200
Recognize income=$625
Therefore The amount of income that Bill
should recognize on Schedule C is $625
When suppliers collaborate with the firm overall performance has been known to improve up to _________
Hi, you've asked an incomplete question. Answered from a general business perspective.
Explanation:
Note, a firm may measure its overall performance using some of the metrics below:
amount of sales in dollarsthe total cost of production,production capacity, etc.Only when the firm's suppliers are reliable, affordable, and efficient, would the firm be able to meet their product demand.