Answer:
Stock 1 Annual holding period returns 13.73%
Stock 2 Annual holding period returns 8.15%
Bond 1 Annual holding period returns 6.80%
Explanation:
Calculation to determine the annual holding period return on each security
Using this formula
Annual holding period return=(End of the year price-Beginning of year price +Interest or dividend paid)/(Beginning of year price )
Let plug in the formula
Stock 1 Annual holding period returns
Stock 1 Annual holding period returns=(46.85-42.60+1.60)/42.60
Stock 1 Annual holding period returns=5.85/42.60
Stock 1 Annual holding period returns=0.1373*100
Stock 1 Annual holding period returns=13.73%
Stock 2 Annual holding period returns=(1.46-1.35+0)/1.35
Stock 2 Annual holding period returns=0.11/1.35
Stock 2 Annual holding period returns=0.0815*100
Stock 2 Annual holding period returns=8.15%
Bond 1 Annual holding period returns =(1,058-1,030+42)/1,030
Bond 1 Annual holding period returns=70/1,030
Bond 1 Annual holding period returns=0.0679*100
Bond 1 Annual holding period returns=6.80% (Approximately)
Therefore the annual holding period return on each security will be :
Stock 1 Annual holding period returns 13.73%
Stock 2 Annual holding period returns 8.15%
Bond 1 Annual holding period returns 6.80%
An encyclopedia is an example of a periodical.
O True
O False
On September 30, 2021, Bricker Enterprises purchased a machine for $209,000. The estimated service life is 10 years with a $24,000 residual value. Bricker records partial-year depreciation based on the number of months in service. Depreciation for 2021 using the straight-line method is:
Answer:
$4,625
Explanation:
Straight line method charges a fixed amount of depreciation for each year the asset is held in business.
Depreciation Charge = (Cost - Residual Value ) ÷ Estimated Useful Life
therefore,
Depreciation Charge = ($209,000 - $24,000) ÷ 10
= $18,500
The annual depreciation is $18,500.
But, the machine was used for only 3 months during the year ( October to December 2021).
therefore,
2021 Depreciation = 3/12 x $18,500 = $4,625
Conclusion
Depreciation for 2021 using the straight-line method is $4,625
A certificate of deposit (CD) is an agreement between a bank and a saver in which the bank guarantees an interest rate and the saver commits to leaving his or her deposit in the account for an agreed-upon period of time. National Trust Savings offers five-year CDs at 8.26% compounded daily, and Bank of the Future offers five-year CDs at 8.29% compounded annually. Compute the annual yield for each institution. (Round your answers to two decimal places.)
Answer:
8.25 / 365 = 0.0226027397 percent daily interest
So the daily compounding gives you
1.000226027397 on your money each day
1.000226027397^365 = 1.08598855
So this one is better, it's nearly 8.6 % yield,
vs less than 8.3% for the one with annual compounding.
Take 1.0828 or 1.0860 to the fifth power to see the difference over 5 years.
9.4 Working Capital. Identify the working capital accounts related to (a) revenues recognized and deferred, (b) cost of goods sold, (c) employee salary and wages, and (d) income tax expense. For each account, indicate whether an increase in the working capital asset or liability would be an addition or subtraction when reconciling from net income to cash flows from operations
Answer:
(a) revenues recognized and deferred,
a decrease in deferred revenues and a recognition of accrued revenues results in higher working capital (current assets increase while current liabilities decrease)
(b) cost of goods sold,
An increase in cost of goods sold results in a decrease of inventories, therefore, working capital decreases (less current assets)
(c) employee salary and wages
employee wages decrease cash (if they are paid) or increase wages payable (current liability) if they are not paid yet. It decreases working capital
(d) income tax expense.
income taxes decrease cash (if they are paid) or increase income taxes payable (current liability) if they are not paid yet. It decreases working capital
What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500? a. Small automobiles become more fashionable: No change . b. The price of large automobiles rises (with the price of small autos remaining the same): (Click to select) . c. Income declines and small autos are an inferior good: (Click to select) . d. Consumers anticipate that the price of small autos will greatly come down in the near future: (Click to select) . e. The price of gasoline substantially drops: (Click to select) .
Answer:
a. Small automobiles become more fashionable:
demand curve will shift to the right, increasing total quantity demanded and prices
b. The price of large automobiles rises (with the price of small autos remaining the same):
demand curve will shift to the right, increasing total quantity demanded and prices
c. Income declines and small autos are an inferior good:
demand curve will shift to the right, increasing total quantity demanded and prices
d. Consumers anticipate that the price of small autos will greatly come down in the near future:
demand curve will shift to the left, decreasing total quantity demanded and prices
e. The price of gasoline substantially drops:
demand curve will shift to the left, decreasing total quantity demanded and prices
Plata Company has identified the following overhead activities, costs, and activity drivers for the coming year:
Activity Expected Cost Activity Driver Activity Capacity
Setting up equipment $120,000 Number of setups 300
Ordering costs 90,000 Number of orders 9,000
Machine costs 210,000 Machine hours
21,000
Plata produces two models of microwave ovens with the following activity demands:
Model X Model Y
Units completed 8,000 4,000
Number of setups 200 100
Number of orders 3,000 6,000
Machine hours 12,000 9,000
The company's normal activity is 21,000 machine hours.
Calculate the total overhead cost that would be assigned to Model X using an activity-based costing system ______________
Answer:
GU
Model X Model Y
Units completed 8,000 4,000
Number of setups 200 100
Number of orders 3,000 6,000
Machine hours 12,000 9,000
4,000
Number of setups 200 100
Number of orders 3,000 6,000
Machine hours 12,000 9,000
The company's normal activity is 21,000 machine hours.
Calculate the total overhead cost that would
What is the largest concern regarding the
'educate' and 'support' steps in the
process of implementing change?
A. Time
B. Expense
C. Difficulty
High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced January $1,900,000 20,000 units February 2,250,000 27,000 March 2,400,000 30,000 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a. Variable cost per unit $fill in the blank 1 b. Total fixed cost $fill in the blank 2
Answer:
A. $50 per unit
B. $900,000
Explanation:
(a) Computation for the variable cost per unit using this formula
Variable cost per unit=(Total cost at highest level-Total cost at lowest level)/(Highest level-Lowest level)
Let plug in the formula
Variable cost per unit=(2,400,000-1,900,000)/(30,000-20,000)
Variable cost per unit=500,000/10,000
Variable cost per unit=$50 per unit
Therefore The Variable cost per unit will be $50 per unit
B. Computation to determine the Total fixed cost
Total fixed cost=2,400,0000-(50*30,000)
Total fixed cost=2,400,0000-1,500,000
Total fixed cost=$900,000
Therefore The Total fixed cost will be $900,000
Suppose that unskilled workers find it worthwhile to acquire skills when the wage differential between skilled and unskilled workers reach a certain threshold. Explain the effects on the supply of unskilled workers, the supply of skilled workers, and the equilibrium wage for the two groups. In particular what is the equilibrium wage of skilled workers relative to unskilled workers after some unskilled workers receive training
Answer:
a. Short-run economic profit: $ 40,000 per lease.
Long-run economic profit: $ 0 per lease.
b. Landowners would gain $40,000 per plot each year due to higher rent for land
Explanation:
The short-run economic profit for a cotton farmer is:
Economic profit = Total revenue - Explicit costs - Implicit costs = $60,000 - $14,000 - $6,000 = $40,000 per lease.
Landowners would reap the long-term benefits of the scheme. Their income would rise by $40,000 per year per 120-acre plot because rent would rise from $10,000 to $50,000.
Unskilled labor is one of the most plentiful resources in emerging nations, and it is heavily utilized to support those nations' economic development. Therefore, the cost of this labor plays a significant role in the selection and layout of development projects.
What effects on the supply of unskilled workers?Saving Money – Although skilled workers may initially be paid more than unskilled workers, competent people will ultimately cost less for your company. Unskilled workers are more likely to need more training, commit errors while working, and maybe your client relationships.
If the minimum wage levels are low in comparison to average salaries, increasing the minimum wage that employers must pay has minimal effects on total hours worked (i.e., total jobs times hours per job).
Therefore, Any decrease in the labor force available to a market will result in higher salaries and higher employer costs.
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Given Table 12-6 below, fill in the values for saving. Assume taxes = $800.
Table 12-6
National Income
$11,400
11,800
12,200
12,600
Consumption
$7,500
7,800
8,100
8,400
What are the savings .
Answer:
Saving = National Income - Consumption - Taxes
Explanation:
Savings are the part of income that is not spent or paid in taxes. So it can be calculated by subtraction consumption from the national income.
National Income (Y) = C+ T + S
Therefore,
S= Y - C - T
That is the part of income that is not spent or paid in taxes is called savings.
National Income Consumption Taxes Savings
$11,400 $7,500 $800 $3,100
$11,800 $7,800 $800 $3,200
$12,200 $8,100 $800 $3,300
$12,600 $8,400 $800 $3,400
Harper Inc. has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $208,879; benefits paid to retirees, $45,678; interest cost, $8,911. There was no amortization of any prior service costs or amortization of gains/losses. The discount rate applied by the actuary was 7%. What was the beginning PBO?
Answer: $127,300
Explanation:
The interest cost for the year is based on the Beginning Pension Benefit Obligation (PBO) in the manner:
Interest cost = Beginning PBO * Discount rate
Beginning PBO can therefore be calculated as:
8,911 = Beginning PBO * 7%
Beginning PBO = 8.911 / 7%
Beginning PBO = $127,300
A company's income statement showed the following: net income, $134,000; depreciation expense, $40,000; and gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $11,400; merchandise inventory increased $28,000; prepaid expenses increased $8,200; accounts payable increased $5,400. Calculate the net cash provided or used by operating activities.
Answer:
the net cash provided by operating activities is $168,600
Explanation:
Cash flow from operating activities
net income, $134,000
adjust for non-cash items
add depreciation expense, $40,000
less gain on sale of plant assets, $14,000
adjust for changes in working capital
decrease in accounts receivable $11,400
increase in merchandise inventory ($28,000)
increase in prepaid expenses ($8,200)
increase in accounts payable $5,400
net cash provided by operating activities $168,600
On January 1, a company issues 8%, 5-year, $300,000 bonds that pay interest semiannually. On the issue date, the annual market rate of interest is 6%. The following information is taken from present value tables: Present value of an annuity (series of payments) for 10 periods at 3%8.5302 Present value of an annuity (series of payments) for 10 periods at 4%8.1109 Present value of 1 (single sum) due in 10 periods at 3%0.7441 Present value of 1 (single sum) due in 10 periods at 4%0.6756 What is the issue (selling) price of the bond
Answer: $325,592
Explanation:
Selling price of bond = Present value of coupon payments + Present value of Par value
No. of periods = 5 * 2 = 10 semi annual periods
Coupon payments = 300,000 * 8% * 1/2 = $12,000
Periodic interest = 6% / 2 = 3% per period
Selling price = (12,000 * Present value of annuity factor, 10 periods, 3%) + (300,000 * Present value of single sum, 10 periods, 3%)
= (12,000 * 8.5302) + (300,000 * 0.7441)
= $325,592
In 20X1, Modern Property Groups collected rent revenue for 20X2 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as income in the period tenants occupy rental property. But for income tax reporting it is taxed when collected. The deferred portion of the rent collected in 20X1 was $40,000. Taxable income is $100,000. No temporary differences existed at the beginning of the year, and the tax rate is 30%. The journal entry to record income taxes at the end of 20X1 includes (Select all that apply.)
Answer:
Debit deferred tax asset for $12,000
Debit income tax expense for $18,000
Credit income tax payable for $30,000
Explanation:
The journal entries will look as follows:
Date Account Name and Description Debit ($) Credit ($)
20X1 Deferred tax asset (w.1) 12,000
Income tax expense (w.3) 18,000
Income tax payable (w.2) 30,000
(To record income taxes at the end of 20X1.)
Workings:
w.1: Deferred tax asset = Deferred portion of the rent collected in 20X1 * Tax rate = $40,000 * 12% = $12,000
w.2: Income tax payable = Taxable income * Tax rate = $100,000 * 30% = $30,000
w.3: Income tax expense = Income tax payable - Deferred tax asset = $30,000 - $12,000 = $18,000
Which of these statements about a franchisee is true?
OA. They are able to make all the business decisions.
OB. They are able to use their creativity to modify any aspect of the business.
Oc. They are able to introduce new products in the market without the franchisor's approval.
OD. They are able to use a franchisor's proven business systems and processes.
O E. They are able to guarantee the success of the franchisor's business.
The cash account for American Medical Co. at April 30 indicated a balance of $89,775. The bank statement indicated a balance of $125,160 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:A. Checks outstanding totaled $31,540.B. A deposit of $18,000, representing receipts of April 30, had been made too late to appear on the bank statement.C. The bank collected $24,075 on a $22,500 note, including interest of $1,575.D. A check for $1,700 returned with the statement had been incorrectly recorded by American Medical Co. as $170. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.E. A check drawn for $290 had been erroneously charged by the bank as $920.F. Bank service charges for April amounted to $70.Instructions1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Deduct:" or "Add:" will automatically appear if it is required.2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash?
Answer:
1. Adjusted bank balance $112,250
Adjusted cash balance $112,250
2.April 30
Dr Cash $24,075
Cr Note receivable $22,500
Cr Interest revenue $1,575
April 30
Dr Accounts payable - Targhee Supply Co $1,530
Cr Cash $1,530
April 30
Dr Bank service charges $70
Cr Cash $70
3. $112,250
Explanation:
1. Preparation of a bank reconciliation
AMERICAN MEDICAL CO.
Bank ReconciliationApril 30
Cash balance according to bank statement $125,160
Add Deposit in transit $18,000
Add Correction of bank error $630
Less Checks outstanding totaled ($31,540)
Adjusted balance $112,250
Cash balance according to company’s records $89,775
Add Bank collection of note and interest 24,075
Less Bank service charges ($70)
Correction of book error ($1,530)
Adjusted balance $112,250
2. Preparation of the journal entries
April 30
Dr Cash $24,075
Cr Note receivable $22,500
Cr Interest revenue $1,575
($24,075-$22,500)
April 30
Dr Accounts payable - Targhee Supply Co $1,530
Cr Cash $1,530
April 30
Dr Bank service charges $70
Cr Cash $70
3. Based on the bank reconciliation the amount that should be reported as cash will be $112,250
Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. $16,000 cash deposit in checking account. $46,000 bond investment due in 20 years. $11,500 U.S. Treasury bill due in 1 month. $850, 3-year loan to an employee. $3,600 of currency and coins. $1,150 of accounts receivable.
Answer:
Specter Co.
The amount reported on the year-end balance sheet for cash and cash equivalents is:
= $31,100.
Explanation:
a) Data and Calculations:
Cash deposit in checking account = $16,000
Bond investment due in 20 years = $46,000
US Treasury bill due in 1 month = $11,500
3-year loan to an employee = $850
Currency and coins = $3,600
Accounts receivable $1,150
Cash and Cash Equivalents:
Cash deposit in checking account $16,000
US Treasury bill due in 1 month 11,500
Currency and coins 3,600
Total cash and cash equivalents = $31,100
b) Cash and Cash Equivalents are Specter's assets that are in the form of cash (currency and coins) and Specter's assets that can be readily converted into cash (Treasury bills and notes, commercial papers. certificates of deposit, money market funds, and cash management pools).
Brockton Carpet Cleaning prepares a bank reconciliation at the end of every month. At the end of July, the balance in the general ledger checking account was $2,870 and the bank balance on the bank statement was $3,040. Outstanding checks totaled $740 and deposits in transited were $460. The bank statement revealed that a check written for $180 was incorrectly recorded by Brockton as a $280 disbursement. The bank statement listed service charges and NSF check charges totaling $210. The corrected cash balance is:
Answer:
$8,000
Explanation:
The corrected cash balance is $8,000
Required information Skip to question Information for Pueblo Company follows: Product A Product B Sales Revenue $ 59,000 $ 51,000 Less: Total Variable Cost $ 11,400 $ 31,500 Contribution Margin $ 47,600 $ 19,500 Determine its break-even sales dollars if total fixed costs are $42,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
$68,852.46
Explanation:
The computation of the break even sales dollars is shown below:
Product Sales variable cost Contribution
A $59,000 $11,400 $47,600
B $51,000 $31,500 $19,500
Total $110,000 $67,100
Now the break even sales dollars is
= $42,000 ÷ $67,100 ÷ $110,000
= $42,000 ÷ 0.61
= $68,852.46
Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 10,000 Cost of goods sold 7,950 Depreciation 410 Earnings before interest and taxes $ 1,640 Interest paid 100 Taxable income $ 1,540 Taxes 539 Net income $ 1,001 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 270 $ 300 Accounts payable $ 1,630 $ 1,812 Accounts rec. 1,110 1,010 Long-term debt 1,070 1,383 Inventory 1,780 1,755 Common stock 3,360 3,030 Total $ 3,160 $ 3,065 Retained earnings 650 900 Net fixed assets 3,550 4,060 Total assets $ 6,710 $ 7,125 Total liab. & equity $ 6,710 $ 7,125
What is the cash coverage ratio for 2017?
Answer:
20.50 times
Explanation:
Cash coverage ratio = (EBIT + Depreciation) / Interest paid
Cash coverage ratio = ($1,640+$410) / $100
Cash coverage ratio = $2,050 / $100
Cash coverage ratio = 20.50 times
So, the cash coverage ratio for 2017 is 20.50 times
You own 200 shares of Loner stock. The firm announced that it will be issuing a dividend of $.20 a share one year from today followed by a final liquidating dividend of $1.60 a share two years from today. If you can earn 7 percent on your funds, what will be the value of your total investment income in two years if you do not want to receive any funds until then
Answer:
value of your total investment income 362.80
Explanation:
The computation of the value of your total investment income in two years is shown below
Value of Dividend after 2 years (200 × .20 × 1.07)42.80
Value of Liquidating Dividend (200 × 1.60) 320.00
value of your total investment income 362.80
The value of your total investment income in two years from today, will be 362.80
What is investment income?Investment income refers to the profit that is earned from investments like real estate and stock sales
The computation of the value of your total investment income in two years is shown below:
Value of Dividend after 2 years
= (200 × .20 × 1.07)
= 42.80
Value of Liquidating Dividend
= (200 × 1.60)
= 320.00
value of your total investment income
= 362.80
Hence, the value of your total investment income in two years from today will be 362.80
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What is the expected return on Andre’s stock portfolio? 9.70% 13.10% 14.55% 7.28% Suppose each stock in Andre’s portfolio has a correlation coefficient of 0.4 (rho = 0.4) with each of the other stocks. If the weighted average of the risk of the individual securities (as measured by their standard deviations) included in the partially diversified four-stock portfolio is 36%, the portfolio’s standard deviation ( σp ) most likely is 36%.
Answer:
a. 9.70%
Explanation:
Note: Missing word is attached below as picture
Expected Rate of Return = Sum of (Return *Percentage of Portfolio)
Expected Rate of Return = [6.00% *0.20] + [14.00%*0.30] + [11.00%*0.35] + [3.00%*0.15]
Expected Rate of Return = 1.20% + 4.20% + 3.85% + 0.45%
Expected Rate of Return = 9.70%
If weighted average of the risk of the individual securities included in the partially diversified portfolio of four stocks is 36%, then the portfolios standard deviation most likely is > 36%.
This information relates to Pharoah Co..
1. On April 5, purchased merchandise from Cullumber Company for $28,600, terms 4/10, n/30.
2. On April 6, paid freight costs of $580 on merchandise purchased from Cullumber Company.
3. On April 7, purchased equipment on account for $32,000.
4. On April 8, returned $3,500 of April 5 merchandise to Cullumber Company.
5. On April 15, paid the amount due to Cullumber Company in full.
Prepare the journal entries to record the transactions listed above on Pharoah Co.'s books. Pharoah Co. uses a perpetual inventory system.
Answer and Explanation:
The journal entries are shown below:
On April 5
Inventory Dr $28,600.00
To Accounts payable $28,600.00
(Being purchase of inventory on account is recorded)
On April 6
Inventory Dr $580.00
To Cash $580.00
(Being freight payment is recorded)
On April 7
Equipment Dr $32,000.00
To Accounts payable $32,000.00
(Being purchase of equipment is recorded)
On April 8
Accounts payable Dr $3,500.00
To Inventory $3,500.00
(Being purchase returns is recorded)
On April 15
Accounts payable Dr $25,100.00 ($28,600- $3,500)
To Cash $24,096.00
To Inventory $1,004.00 ($25,100 × 4%)
(Being payment to the supplier is recorded)
You are scheduled to receive annual payments of $11,100 for each of the next 24 years. Your discount rate is 10 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year
Answer:
The difference in the present value is $988.32.
Explanation:
The difference in the present value can be calculated using the following 3 steps:
Step 1: Calculation of the present value if you receive these payments at the beginning of each year
This can be calculated using the formula for calculating the present value (PV) of annuity due given as follows:
PVA = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) .................................. (1)
Where;
PVA = Present value if you receive these payments at the beginning of each year = ?
P = Annual payments = $11,100
r = interest rate = 10%, or 0.10
n = number of years = 24
Substitute the values into equation (1), we have:
PVA = $11,100 * ((1 - (1 / (1 + 0.10))^24) / 0.10) * (1 + 0.10)
PVA = $10,871.54
Step 2: Calculation of the present value if you receive these payments at the end of each year
This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PVO = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)
Where:
PVO = Present value if you receive these payments at the end of each year = ?
Other values are as defined in Step 1 above.
Substitute the values into equation (2), we have:
PVO = $11,100 * ((1 - (1 / (1 + 0.10))^24) / 0.10)
PVO = $9,883.22
Step 3: Calculation of the difference in the present value
This can be calculated as follows:
Difference in the present value = PVA - PVO = $10,871.54 - $9,883.22 = $988.32
The following items were taken from the financial statements of Buttercup Company. (All dollars are in thousands.) Mortgage payable $2,443 Accumulated depreciation $3,655 Prepaid insurance 880 Accounts payable 1,444 Property, plant, and equipment 11,500 Notes payable after 2022 1,200 Long-term investments 1,100 Common stock 5,000 Short-term investments 3,690 Retained earnings 8,480 Notes payable in 2022 1,000 Accounts receivable 1,696 Cash 2,600 Inventories 1,756
Prepare a classified balance sheet in good form as of December 31, 2015. (Enter amounts in thousands. List current assets in order of liquidity.)
Answer and Explanation:
The preparation of the classified balance sheet is presented below:
Buttercup Company
Balance Sheet
December 31, 2022
(in thousands)
Assets
Current Assets
Cash $2,600
Short-term investments $3,690
Accounts receivable $1,696
Inventories $1,756
Prepaid expenses $880
Total current assets $10,622
Long-term investments $1,100
Property, plant, and equipment
Property, plant, and equipment $11,500
Less: Accumulated depreciation -$3,655 $7,845
Total assets $19,567
Liabilities and Owner's Equity
Current liabilities
Notes payable in 2022 $1,000
Accounts payable $1,444
Total current liabilities $2,444
Long-term liabilities
Mortgage payable $2443
Notes payable (after 2022) $1,200
Total long-term liabilities $3,643
Total liabilities $6,087
Owner's equity
Owner’s capital $13,480 ($5,000 + $8,480)
Total liabilities and owner's equity $19,567
A particular forecasting model was used to forecast a six-month period. Here are the forecasts and actual demands that resulted: FORECAST ACTUAL April 256 232 May 330 300 June 406 460 July 355 433 August 380 490 September 456 514 a. Find the tracking signal for each month. (Negative values should be indicated by a minus sign. Round your answers to the 2 decimal places.)
Answer:
may 330
Explanation:
Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning August 1 $18,500,000 $44,000,000 Estimated direct labor hours for year 800,000 Estimated machine hours for year 1,250,000 Actual factory overhead costs for August $1,515,800 $3,606,300 Actual direct labor hours for August 64,500 Actual machine hours for August 105,000 Required: a. Determine the factory overhead rate for Factory 1. Round your answer to two decimal places. b. Determine the factory overhead rate for Factory 2. c. Journalize the Aug. 31 entries to apply factory overhead to production in each factory. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. d. Determine the balances of the factory overhead accounts for each factory as of August 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. Enter all amounts as positive numbers.
Answer:
Eclipse Solar Company
a. Factory overhead rate for Factory 1 is $23.13
b. Factory overhead rate for Factory 2 is $35.20
c. Journal Entries:
August 31:
Debit Work in Process Factory 1 $1,491,885
Credit Factory Overhead $1,491,885
Debit Work in Process Factory 2 $3,696,000
Credit Factory Overhead $3,696,000
d. Balances of the factory overhead accounts:
Factory 1 $23,915 underapplied
Factory 2 $89,700 overapplied
Explanation:
a) Data and Calculations:
Factory 1 Factory 2
Overhead application basis machine hrs direct labor hrs
Estimated overhead costs $18,500,000 $44,000,000
Direct labor hours 800,000
Factory overhead rate $23.125
Machine hours 1,250,000
Factory overhead rate $35.20
August:
Actual overhead costs $1,515,800 $3,606,300
Actual direct labor
hours for August 64,500
Actual machine hours for August 105,000
Application of overhead to production for August:
Factory 1 = $1,491,885 (64,500 * $23.13)
Factory 2 $3,696,000 (105,000 * $35.20)
Factory overhead accounts:
Factory 1 Factory 2
Actual overhead costs $1,515,800 $3,606,300
Applied overhead costs $1,491,885 $3,696,000
Under/(Over)-Applied $23,915 $89,700 Overapplied
As of December 31, 2020, Gill Co. reported accounts receivable of $236,000 and an allowance for uncollectible accounts of $8,400. During 2021, accounts receivable increased by $22,300, (that change includes $7,400 of bad debts that were written off). An analysis of Gill Co.'s December 31, 2021, accounts receivable suggests that the allowance for uncollectible accounts should be 1% of accounts receivable. Bad debt expense for 2021 would be:
Answer:
$1,583
Explanation:
Accounts receivables as at 31/12/2021 = $236,000
A/R as at 31/12/2022 :
= Accounts receivables as at 31/12/2021 + increase in AR
= $236,000 + $22,300
= $258,300
Uncollectible accounts = 1% of accounts receivables
= 1% × $258,300
= $2,583
Allowance 31/12/2021 = $8,400
Writes off = $7,400
Therefore,
Allowance = Allowance 31/12/2021 - writes ofd
= $8,400 - $7,400
= $1,000
Hence,
Bad debt expense for 2021 = Uncollectible accounts - Allowance
= $2,583 - $1,000
= $1,583
In its first year of operations, Ivanhoe Company recognized $29,800 in service revenue, $7,000 of which was on account and still outstanding at year-end. The remaining $22,800 was received in cash from customers. The company incurred operating expenses of $19,000. Of these expenses, $13,140 were paid in cash; $5,860 was still owed on account at year-end. In addition, Ivanhoe prepaid $3,150 for insurance coverage that would not be used until the second year of operations.
(a) Calculate the first year’s net earnings under the cash basis of accounting, and the first year’s net earnings under the accrual basis of accounting.
Answer:
See below
Explanation:
1. Income statement (using cash basis)
Cash basis is recognized base on the cash collection or disbursement
Revenues (only cash receipts)
$22,800
Less:
Expenses paid in cash
($13,140)
Insurance paid
($3,150)
Net income
$6,510
2. Income statement (using accrual basis)
Revenues (earned)
($22,800 + $7,000)
$29,800
Less:
Expenses(incurred, insurance for next year not included
($19,000)
Net income
$10,800
Answer:
Explanation:
Accural Basis (2nd Answer)
During the meeting, Carlos has been emphasizing the importance of the change, and trying to persuade employees to accept the transition. He also thinks losing employees may be acceptable if they cannot accept the change. According to Lewin’s force field analysis model, Carlos behaviors reflect his effort to facilitate the ______ process.
Answer:
During the meeting, Carlos has been emphasizing the importance of the change and trying to persuade employees to accept the transition. He also thinks losing employees may be acceptable if they cannot accept the change. According to Lewin’s force field analysis model, Carlos's behaviors reflect his effort to facilitate the change process.
Explanation:
Lewin's Force Field Theory has a three-stage theory, the Unfreezing, Change, and the Refreezing stages. This theory talks about how organizations are pushed toward change by driving forces.
This desired change starts by unfreezing the behaviors that are not wanted, in other words, Carlos would make employees see the need to embrace change for the company to move forward. While the Change theory talks about the transition to that desired behavior and the actual change is implemented. Finally, the Refreezing theory aims to make the change permanent as people tend to easily go back to behaviors they have been used to because employees may resist change due to their desire to remain in their comfort zones. Behaviors of employees could point to the driving and restraining forces in an organization.