Answer:
Variable overheads rate variance = $608 favorable
Explanation:
The variable overhead rate variance is the difference between the standard cost of the actual labour hours and the actual variable overhead expenditure
$
1,520 hours should have cost (1,520× $6.90) 10,488
But did cost 9,880
Rate variance 608 Favorable
Variable overheads rate variance = $608 favorable
Diamond Boot Factory normally sells its specialty boots for $22 a pair. An offer to buy 120 boots for $18 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $8, and special stitching will add another $2 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization.
Answer:
Differential income = $960
Explanation:
In a special order decision , the offer should be accepted if the sales revenue from the order is greater than the relevant costs of the special orders.
The relevant costs of the special order = variable cost + additional cost of special stitching machine
$
Sales revenue (120× $18) 2,160
The relevant costs of the special order
= (120×8) + (120×2) (1,200)
Differential income 960
Determine if there was a percent increase or decrease in the number of trench coats sold, and by how much. (Round your answer to the nearest tenth.)
a.
The percentage of trench coats sold decreased by 0.8%.
b.
The percentage of trench coats sold increased by 0.8%.
c.
The percentage of trench coats sold decreased by 23.3%.
d.
The percentage of trench coats sold increased by 23.3%.
Answer:
D. increase of 23.3%, right on edge
Explanation:
to find the percentage increase, first you need to substract the final from the initial, then divide the difference by the initial, then multiply your answer by 100 to get the percentage
in this case, the final is 127, and the initial is 103
127 - 103 = 24
24 ÷ 103 = 0.233
0.233 x 100 = 23.3%
Answer:
✅ D. The percentage of trench coats sold increased by 23.3%.SAP Inc. received a $1.5 million grant under its Small Business Innovation program. SAP invested the grant money and developed a system to remove metal contaminants from storm water in shipyards. The firm estimates that each shipyard spends $500,000 a year on storm water clean-up efforts. If SAP is able to sign up and retain four shipyards in the first year onwards, what is the present value (PV) of the project (net of investment) if the cost of capital for SAP is 14% per year
Answer: $12,785,714
Explanation:
Present value of project:
= Revenue / Cost of capital
= (500,000 * 4 shipyards) / 14%
= $14,285,714
Net of investment:
= 14,285,714 - 1,500,000
= $12,785,714
Which one of the following bank accounts will you choose for a savings account? Bank A: An account that pays 8% nominal interest (APR) with daily (365-day) compounding. Bank B: An account that pays 8% nominal interest (APR) with annual compounding. Bank C: An account that pays 7% nominal interest (APR) with daily (365-day) compounding. Bank D: An account that pays 7% nominal interest (APR) with monthly compounding.
Answer:
bank a
Explanation:
to determine the appropriate bank to choose for a savings account, we have to calculate the effective annual interest rate. the bank with the highest effective annual interest rate would be chosen
Effective annual rate = (1 + APR / m ) ^m - 1
M = number of compounding
Bank A = [ 1 + (0.08/365)^365 - 1 = 8.32%
Bank B = 8%
Bank C = [ 1 + (0.07/365)^365 - 1 = 7.25%
Bank D = [ 1 + (0.07/12)^365 - 1 =7.23%
Bank A has the highest effective annual rate and would be chosen
Baker Company, an Ohio company that sells a branded product regionally to retail customers in Midwest. It normally sells its product for $40 per unit; however, it has received a one-time offer from a private-brand company on the West Coast to buy 1,000 units at $25 per unit. Even though the company has excess capacity to produce the units, the president of the company immediately rejected the offer; however, the chief accountant stated that it might be a profitable opportunity for the company, even though $25 is below its unit cost of $28, calculated as follows:
Cost
Direct material $12.00
Direct labor 8.00
Depreciation and other fixed costs 6.00
Total unit cost $26.00
Calculate the net advantage (disadvantage) of accepting the special order:
a. $5,000
b. ($5,000)
c. $25,000
d. ($25,000)
Answer:
Effect on income= $5,000 increase
Explanation:
Giving the following information:
One-time offer:
1,000 units at $25 per unit.
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Unitary cost= 12 + 8= $20
Effect on income= 1,000*(25 - 20)
Effect on income= $5,000 increase
Which situation best describes an oligopoly?
A. A city government selects one company to provide clean water for
its residents.
B. A large oil company buys all of its competitors and shuts them
down permanently.
C. A group of vendors compete to sell the same drinks to fans at a
baseball game.
D. A few large airlines work together to set high prices and eliminate
new competitors.
A1 Corp. uses the FIFO method for its process costing calculations. Beginning inventory in the mixing processing center consisted of 5,000 units, 65% complete with respect to conversion costs. Ending work in process inventory consisted of 4,000 units, 50% complete with respect to conversion costs. If 19,000 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be:
Answer:
17,750 units
Explanation:
Calculation of equivalent units for conversion costs - FIFO
To finish Opening Work in Process (5,000 units x 35%) 1,750
Started and Completed [(19,000 units - 5,000 units) x 100%] 14,000
Ending Work in Process (4,000 units x 50%) 2,000
Equivalent units of production 17,750
therefore,
the equivalent units for conversion costs would be 17,750 units
KrAmerica Jewelers sold a necklace to George on a layaway plan. George paid a portion of the price and agreed to make additional payments over six months. The necklace was to remain in the possession of KrAmerica until payment was fully made. A burglary occurred at KrAmerica and the necklace along with other items were stolen. KrAmerica argued that George must bear the risk of loss. George sought recovery of the full value of the necklace. Explain who shall prevail for each claim.
Answer:
- KrAmerica will bear the risk of the loss
- George will not get full recovery for the value of the necklace
Explanation:
George only made some payments for the necklace and he had not taken possession of it yet. So the risk for the loss is with KrAmerica since they are the current owners of the necklace.
George was only to take possession of the necklace when payment was completed.
On the other hand George is seeking full recovery of the value of the necklace.
He has only made a part payment on the necklace, so he is not entitled to get the full value of the necklace.
Only the amount he has paid will be refunded to him.
When the interest rate is above the equilibrium level, a. the quantity of money that people want to hold is less than the quantity of money that the Federal Reserve has supplied. b. people respond by buying interest-bearing bonds or by depositing money in interest-bearing bank accounts. c. bond issuers and banks respond by lowering the interest rates they offer. d. All of the above are correct.
Answer:
D
Explanation:
When interest rate is above the equilibrium level, people would be less willing to hold cash. Instead they would prefer to save or invest in interest-bearing bonds. This is because as a result of the higher interest rate, interest paid on their deposit and investment would be higher.
As a result of the increase in savings, there would be an increase in the supply of loanable funds over demand for loanable funds. This would lead to a reduction in interest rate until equilibrium interest rate is reached.
THESE ARE TRUE OR FALSE!! PLEASE HELP!!
1. A goal in life that is fulfilled through a job is called an occupation.
2. The process of studying careers, assessing yourself, and making decisions about the future
is called career planning.
3. Career planning begins when you make decisions about your interests and the occupation
you want to have someday.
4. Studying careers is continuous because new career opportunities come along regularly.
5. School libraries should be avoided in career planning.
6. Newspaper help wanted ads are interesting but of little value in career planning.
7. In career planning, you should contact both government employment offices and private
employment agencies.
8. Career information interviews can be done naturally without any advance preparation.
9. The willingness and ability of workers to move where jobs are available is called mobility.
10. A natural, in-born aptitude to do certain things is an ability.
A customer browses through several online retail sites and examines product descriptions of several different styles and brands of bed linens. The customer then goes to Macy's and purchases a set of flannel sheets that he had read about on another retailer's site. The purchase of this set of flannel sheets is most clearly an example of ________.
Answer:
digitally influenced purchasing
Explanation:
This is an example of digitally influenced buying, which occurs when consumers search for data and information on a product on the internet before buying at the physical store. There are surveys that show that 64% of in-store purchases are digitally influenced, which makes companies look for strategies to increase their online presence so that customers search for information about their products and services, such as personalizing the search, including location options and product availability, which makes it easier for customers to find the product of their choice in the most convenient store.
Torino Company has 1,500 shares of $10 par value, 7.0% cumulative and nonparticipating preferred stock and 15,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:________.
a. $1,600.
b. $550.
c. $1,050.
d. $2,100.
e. $500.
Answer:
a. $1,600.
Explanation:
The computation of the amount of the dividend that should be paid to the preference shareholder in the second year is shown below:
Annual dividend is
= 1,500 shares × 7% × $10
= $1,050
Now the dividend that should be paid to the next year
= $1,050 + $1,050 - $500
= $1,600
Hence, the mount of the dividend that should be paid to the preference shareholder in the second year is $1,600
A series of 10 end-of-year deposits is made that begins with $5,000 at the end of year 1 and decreases at the rate of $300 per year with 12% interest.
a) What amount could be withdrawn at t = 10? $
Round entry to the nearest dollar. Tolerance is ±4.
b) What uniform annual series of deposits (n = 10) would result in the same accumulated balance at the end of year 10? $
Round entry to the nearest dollar. Tolerance is ±4.
Answer:
a) The amount that could be withdrawn at t = 10 is $68,872.
b) The uniform annual series of deposits is $3,925.
Explanation:
a) What amount could be withdrawn at t = 10? $ Round entry to the nearest dollar. Tolerance is ±4.
Note: See the attached excel for the calculation of the future value in year 10.
From the attached excel file, we have:
Future value in year 10 = $68,872
Therefore, the amount that could be withdrawn at t = 10 is $68,872.
b) What uniform annual series of deposits (n = 10) would result in the same accumulated balance at the end of year 10? $ Round entry to the nearest dollar. Tolerance is ±4.
To calculate the uniform annual series of deposits, we use the formula for calculating the future value of ordinary annuity for as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FV = Future value of the amount deposited in after 10 years = $68,872
M = Uniform annual series of deposits = ?
r = Interest rate = 12%, or 0.12
n = number of year = 10 years
Substituting the values into equation (1) and solve for M , we have:
$68,872 = M * (((1 + 0.12)^10 - 1) / 0.12)
$68,872 = M * 17.5487350695351
M = $68,872 / 17.5487350695351
M = $3,925
Therefore, the uniform annual series of deposits is $3,925.
4. What have been some of the causes of the changing busi-
ness environment in recent decades?
Answer:
The answer is below
Explanation:
Some of the causes of the changing business environment in recent decades are:
1. the commencement and development of technology
2. the economy
3. societal components
4. deregulation of several industries
5. Regional differences
6. the rise in white-collar workers, women, and older people in the workforce
7. a complex and varying level of workforce
8. rise in the number of small businesses.
As the Consumer Price Index increases, the value of money a. falls, so people hold less money to buy the goods and services they want. b. falls, so people hold more money to buy the goods and services they want. c. rises, so people hold more money to buy the goods and services they want. d. rises, so people hold less money to buy the goods and services they want.
Answer:
D. falls, so people hold more money to buy the goods and services they want.
Explanation:
In the case when the consumer price index rises, so the value of the money declines as the people would hold more money in order to purchase the goods and services what actually they want
Also it shows an inverse relationship between the consumer price index and the value of money i.e. if one thing is increased the other thing would decrease and vice versa
Therefore the option d is correct
Principal Printing produces custom labels and stationery for companies. In conducting CVP analysis of its Personalized Package, management decided to determine how many of the packages would need to be sold in order to justify continuing the product line. Management determined that fixed costs direct related to this particular product amounted to $54,000 annually. Principal reported $240,000 of gross sales related to this product and variable product costs of $180,000. Assuming that each Personalized Package sells for $12 per unit, what is the minimum amount of total sales dollars of Personalized Packages that Principal needs in order to justify the product line
Answer:
18,000 personalized packages
Explanation:
Profit-volume ratio = ($240,000 - $180,000) / $240,000
Profit-volume ratio = 0.25
Profit-volume ratio= 25%
Break-Even-Point = $54,000 / 25%
Break-Even-Point = 216,000
The minimum personalized packages that needs to sell to break even:
= Break-Even-Point / Personalized Package sales per unit
= 216,000 / $12
= 18,000 personalized packages
The Peoria Supply Company sells for $30 one product that it purchases for $20. Budgeted sales in total dollars for next year are $720,000. The sales information needed for preparing the July budget follows:
Month Sales Revenue
May $30,000
June 42,000
July 51,000
August 54,000
Account balances at July 1 include these:
Cash $20,000
Merchandise inventory 18,000
Accounts receivable (sales) 23,000
Accounts payable (purchases) 12,000
The company pays for one-half of its purchases in the month of purchase and the remainder in the following month. End-of-month inventory must be 50 percent of the budgeted sales in units for the next month. A 2 percent cash discount on sales is allowed if payment is made during the month of sale. Experience indicates that 50 percent of the billings will be collected during the month of sale, 40 percent in the following month, 8 percent in the second following month, and 2 percent will be uncollectible. Total budgeted selling and administrative expenses (excluding bad debts) for the fiscal year are estimated at $180,000 , of which one-half is fixed expense (inclusive of a $20,000 annual depreciation charge). Fixed expenses are incurred evenly during the year. The other selling and administrative expenses vary with sales. Expenses are paid during the month incurred.
Required:
a. Prepare a schedule of estimated cash collections for July.
b. Prepare a schedule of estimated July cash payments for purchases.
c. Prepare schedules of July selling and administrative expenses, separately identifying those requiring cash disbursements.
Answer:
The Peoria Supply Company
a. Schedule of Estimated Cash Collections:
Cash collections: July
50% sales month $25,500
less 2% cash discount (510)
40% following month 16,800
8% second month 2,400
Total collections $44,190
b. A Schedule of Estimated July Cash Payments for Purchases
June July
Sales $42,000 $51,000
Ending inventory 18,000* 27,000
Beginning inventory 21,000 18,000*
Estimated Purchases 39,000 60,000
Payment for purchases:
50% purchase month $30,000
50% following month 19,500
Total payment for purchases $49,500
c. Selling and administrative expenses
Non-Cash expenses:
Depreciation expense $1,667
Cash disbursements:
Other fixed costs 5,333
Variable costs 6,375
Total costs $13,375
Explanation:
a) Data and Calculations:
Selling price per product = $30
Purchase cost per product = $20
Total sales dollars for next year = $720,000
Month Sales Revenue
May $30,000
June 42,000
July 51,000
August 54,000
July 1:
Cash balance = $20,000
Merchandise inventory $18,000
Accounts receivable (sales) 23,000
Accounts payable (purchases) 12,000
Ending inventory = $27,000 ($54,000 * 50%)
Ending inventory = 50% of next month's budgeted sales
Selling and administrative expenses (excluding bad debts) for the year = $180,000
Fixed costs = $90,000
Depreciation 20,000
Cash fixed costs = $70,000
Monthly fixed costs = $5,833
Variable costs = $90,000
Variable costs per sales dollars = $90,000/$720,000 = $0.125
Cash variable cost for July $0.125 * $51,000 = $6,375
a. Schedule of Estimated Cash Collections:
Cash collections: May June July August
$30,000 $42,000 $51,000 $54,000
50% sales month 15,000 21,000 25,500 27,000
less 2% cash discount (300) (420) (510) (540)
40% following month 16,800 20,400
8% second month 2,400 3,360
2% Uncollectible
The normal distribution is an appropriate model of: A. system reliability where components are connected in parallel. B. the full cost view of maintenance. C. the high initial failure rates of product, machine, or processes. D. the MTBF distribution of products, machines, or processes that have "settled in." E. system reliability where components are connected in series.
Answer:
The correct answer is the option D: the MTBF distribution of products, machines, or processes that have "settled in".
Explanation:
To begin with, the term of "normal distribution" refers to statistic model used in the field of probabilities and the most common characteristics are that they have a standard deviation of 1 and are all symmetrical. In the proper graphic the form of a normal distribution will be the one of a curve bell. Therefore that it is regularly seen in as an appropiate model of MTBF distribution regarding maintenance of products, machines or processes. Moreover, this distribution also known as Gaussian is motivated by the Central Limit Theorem.
At the end of the first year of operations, Meacham's balance sheet showed the following account balances: Accounts Receivable, $13,400; Inventory, $9,400; and Accounts Payable, $14,650. The company's income statement reports net income of $37,400, including depreciation expense of $10,400. Using only the given information, compute Meacham's net cash flow from operating activities using the indirect method.
Answer:
$39,650
Explanation:
Compute Meacham's net cash flow from operating activities using the indirect
Using this formula
Net cash flow from operating activities=Net income-Accounts Receivable-Inventory+Accounts Payable+depreciation expense
Let plug in the formula
Net cash flow from operating activities=$37,400 - $13,400 - $9,400 + $14,650 + $10,400
Net cash flow from operating activities= $39,650
Therefore Meacham's net cash flow from operating activities using the indirect is $39,650
Liu Zhang operates Lawson Consulting, which began operations on June 1. On June 30, the company’s records show the following accounts and amounts for the month of June.
Cash $ 6,500 Service revenue $ 12,900
Accounts receivable 4,800 Equipment 6,800
Accounts payable 3,800 Rent expense 2,300
L. Zhang, Withdrawals 1,800 Wages expense 8,000
Need an income statement for june
Answer:
Lawson Consulting
LAWSON CONSULTING
Income Statement for the month ended June 30
Service revenue $ 12,900
Rent expense 2,300
Wages expense 8,000 10,300
Net income $2,600
Explanation:
a) Data and Calculations:
Cash $ 6,500
Accounts receivable 4,800
Equipment 6,800
Accounts payable 3,800
L. Zhang, Withdrawals 1,800
Service revenue $ 12,900
Rent expense 2,300
Wages expense 8,000
b) The income statement for the month of June summarizes Lawson's revenue and expenses, giving rise to a net income of $2,600. On the statement, the financial profitability of the business is determined. Only temporary accounts from the list of account balances are used to prepare the statement.
P Corporation acquires all of S Company's voting stock. At the date of acquisition, the fair value of S Company's long-term debt is $100 greater than its book value. The debt has a 5-year remaining life at the date of acquisition. When consolidating S Company's financial statements for the first year following acquisition, how will eliminating entry (O) affect long-term debt and interest expense
Answer:
$20 debit to long-term debt, $20 credit to interest expense
Explanation:
Based on the information given the eliminating entry that will affect the long-term debt and interest expense is to DEBIT LONG-TERM DEBT with the amount of $20 and CREDIT INTEREST EXPENSE with the amount of $20
Debit long-term debt $20
Credit Interest expense $20
Calculated as:
Fair value of S Company's long-term debt/Remaining life at the date of acquisition
=$100/5years
=$20
I need Public Administration introdution please about half a page
Answer:
u a opp now
Explanation:
Oriole Company incurs these expenditures in purchasing a truck: cash price $26,070, accident insurance (during use) $1,910, sales taxes $1,350, motor vehicle license $260, and painting and lettering $1,960. What is the cost of the truck?
Answer:
$29,380
Explanation:
Calculation of cost of truck for Oriole company.
Cost of truck
Cash price
$26,070
Sales taxes
$1,350
Painting and lettering
$1,960
Total cost of truck
$29,380
Please note that insurance cost and motor vehicle license are revenue expenditures and are ignored while computing the cost of the truck.
The price of a dozen eggs falls from $3 to $2.70. In response to this price change, the quantity supplied of eggs falls from 150,000 dozen eggs to 125,000 dozen eggs. What is the price elasticity of supply for eggs
Answer:
Price elasticity of supply=1.67
Explanation:
Price elasticity of supply is a measure of the degree of responsive of supply to a change in price . It is computed using the formula below:
% change in Quantity supply/% change in price
% change in Quantity supply= 125,000-150,000/150,000× 100=16.67%
% change in price = (2.70-3.00)/3.00× 100= 10.00%
Price elasticity of supply = 16.67/10.00=1.67
Price elasticity of supply=1.67
Kyle Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 765,000 shares of stock outstanding. Under Plan II, there would be 515,000 shares of stock outstanding and $9.25 million in debt outstanding. The interest rate on the debt is 12 percent, and there are no taxes. a. Assume that EBIT is $2.6 million. Compute the EPS for both Plan I and Plan II. (Do not round intermediate calculations and round your answers to 2 decimal places, 32.16.) EPS Plan I $ Plan II $ b. Assume that EBIT is $3.1 million. Compute the EPS for both Plan I and Plan II. (Do not round intermediate calculations and round your answers to 2 decimal places, 32.16.) EPS Plan I $ Plan II $ c. What is the break-even EBIT
Solution :
Calculation of the [tex]$\text{EPS}$[/tex] for both [tex]$\text{plan I}$[/tex] and [tex]$\text{plan II}$[/tex] where EBIT is 2.6 million.
[tex]$\text{plan I}$[/tex] [tex]$\text{plan II}$[/tex]
EBIT $ 2.6 million $ 2.6 million
Less : Interest $ 1.1 million
Less
PAT $ 2.6 million $ 1.5 million
Earnings available $ 2.6 million $ 1.5 million
for share holder
No. of shares 765,000 515,00
[tex]$\text{EPS}$[/tex] = earnings available $ 3.40 $ 2.9
for share holder/no. of
shares
Hence [tex]$\text{EPS}$[/tex] under the [tex]$\text{plan I}$[/tex] is $ 3.40 and [tex]$\text{plan II}$[/tex] is $ 2.91
Calculating the [tex]$\text{EPS}$[/tex] for both plan I and [tex]$\text{plan II}$[/tex] where EBIT is $ 3.1 million
[tex]$\text{plan I}$[/tex] [tex]$\text{plan II}$[/tex]
EBIT $ 3.1 million $ 3.1 million
Less : Interest $ 1.1 million
Less
PAT $ 3.1 million $ 2.0 million
Earnings available $3.1 million $ 2.0 million
for share holder
No. of shares 765,000 515,00
[tex]$\text{EPS}$[/tex] = earnings available $ 4.05 $ 3.88
for share holder/no. of
shares
Hence, [tex]$\text{EPS}$[/tex] under the [tex]$\text{plan I}$[/tex] is [tex]$\$4.05$[/tex] and [tex]$\text{plan II}$[/tex] is [tex]$\$ 3.88$[/tex]
Calculating the breakeven EBIT
When [tex]$\text{accessing}$[/tex] the relative effectiveness leverage versus equity financing companies look for the level of the EBIT where [tex]$\text{EPS}$[/tex] remains unaffected, called the EBIT-EPS breakeven point .
To calculate the EBIT-EPS breakeven point, rearranging the [tex]$\text{EPS}$[/tex] formula:
[tex]$\text{EBIT}=\text{(EPS }\times \text{no. of common shares outstanding )}+\frac{\text{preferred share dividends}}{1-\text{tax rate}}+ \text {debt interest}$[/tex]
[tex]$=(\$4.05 \times 515,000)+0+\$1,100,000 = \$3,185,750$[/tex]
Therefore, the break even EBIT is $ 3,185,750
You have $100,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly. a. How many dollars in withdrawals per month would reduce this nest egg to zero in 20 years
Answer:
$680
Explanation:
The computation of the dollars in withdrawals per month that decrease this nest egg to zero in 20 years is shown below;
As we can see in the attached image that the $100,000 would be in the retirement fund so in 20 years, the withdrawals per month is $680 that decrease the nest egg to zero
Therefore the same would be considered
Which of the following best describes the purpose of INSURANCE?
Group of answer choices
Insurance prevents accident and injury to insured individuals
Insurance protects individuals from financial loss.
Insurance helps pay your car payments.
Insurance is an emergency savings plan
Answer:
I think B
Explanation:
Insurance in short term is something that helps people protect themselves from losing money. So financial losses can be money.
On November 1 of the current year, Rob Elliot invested $30,000.00 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000.00. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $55,650.00 and total stockholders' equity of $38,000.00.
Cash Supplies Land Accounts Payable Common Stock Retained Earnings Dividends Fees Earned Wages Expense Rent Expense Supplies Expense Utilities Expense Miscellaneous Expense
? $8,600.00 $16,500.00 ? ? $5,000.00 $5,750.00 $26,750.00 $6,400.00 ? $4,650.00 $1,265.00 $460.00
Review the following questions. Indicate which financial statement(s) report the desired information. Enter the amount reported on the financial statement. (Select "Yes" or "No")
Balance Sheet Income Statement Retained Earnings Statement Amount
1. What is the amount reported for total liabilities and stockholders' equity on December 31? $
2. What is the retained earnings amount reported on December 31? $
3. How much does GGE Enterprises Inc. owe to its creditors? $
4. How much cash is being held by GGE Enterprises Inc.? $
5. By what amount did retained earnings increase or decrease during the period? $
6. What is the amount of profit or loss during December? $
7. What were the total expenses for December? $
8. How much was paid for rent? $
Answer:
GGE Enterprises Inc.
1a. The amount reported for total liabilities is:
= $17,650
1b. The amount reported for stockholders' equity is:
= $38,000
2. Retained earnings reported on December 31 is:
= $8,000
3. Total amount that GGE Enterprises owes to its creditors is:
= $17,650
4. The cash being held by GGE Enterprises Inc. is:
= $30,550
5. The retained earnings increased by $3,000 during the period.
6. The amount of profit during December is:
= $8,750
7. The total expenses for December is:
= $18,000
8. The amount paid for rent was:
= $5,225
Explanation:
a) Data and Calculations:
Total assets = $55,650
Total stockholders' equity = $38,000
Total liabilities = $17,650 ($55,650 - $38,000)
Account Titles Debit Credit
Cash $30,550.00
Supplies 8,600.00
Land 16,500.00
Accounts Payable $17,650.00
Common Stock 30,000.00
Retained Earnings 5,000.00
Dividends 5,750.00
Fees Earned $26,750.00
Wages Expense $6,400.00
Rent Expense 5,225.00
Supplies Expense 4,650.00
Utilities Expense 1,265.00
Miscellaneous Expense 460.00
Total $79,400.00 $79,400.00
Cash = $30,550 (Total assets - Supplies - Land)
Rent expense =$5,225 ($79,400 - $74,175
Common stock = $30,000
Accounts payable = Total assets - Owners' equity
= $17,650 ($55,650 - $38,000)
Net income:
Fees Earned $26,750.00
Wages Expense $6,400.00
Rent Expense 5,225.00
Supplies Expense 4,650.00
Utilities Expense 1,265.00
Miscellaneous Expense 460.00 18,000.00
Net income $8,750.00
Dividends (5,750.00)
Retained earnings, November 30 5,000.00
Retained earnings, December 31 $8,000.00
1a. The amount reported for total liabilities is:
= $17,650 ($55,650 - $38,000)
1b. The amount reported for stockholders' equity is:
= $38,000 ($30,000 + $8,000)
2. Retained earnings reported on December 31 is:
= $8,000
3. Total amount that GGE Enterprises owes to its creditors is:
= $17,650
4. The cash being held by GGE Enterprises Inc. is:
= $30,550
5. The retained earnings increased by $3,000 during the period.
6. The amount of profit during December is:
= $8,750
7. The total expenses for December is:
= $18,000
8. The amount paid for rent was:
= $5,225
You are long 30 gold futures contracts, established at an initial settle price of $1,542 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,531, $1,527, $1,537, and $1,547, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or loss at the end of the trading period. Assume that a margin call requires you to fund your account back to the initial margin requirement. For days in which a deposit is necessary, give the margin balance after the required deposit
Answer:
The solutions is given in the attached figure
Explanation:
The values are calculated using the appropriate formulas in Excel. The formulas are as indicated in the attached figure.
In its first year of operations, Roma Company reports the following.
Earned revenues of $55,000 ($47,000 cash received from customers).
Incurred expenses of $30,500 ($23,750 cash paid toward them).
Prepaid $9,250 cash for costs that will not be expensed until next year.
Required:
Compute the company’s first-year net income under both the cash basis and the accrual basis of accounting.
Answer:
Cash Basis $14,000
Accrual Basis $24,500
Explanation:
Computation for the company’s first-year net income under both the cash basis and the accrual basis of accounting.
CASH BASIS ACCRUAL BASIS
Revenues $47,000 $55,000
Less Expenses $33,000 $30,500
($23,750+9,250=$33,000)
Net income $14,000 $24,500
Therefore the company’s first-year net income under both the cash basis and the accrual basis of accounting will be :
Cash Basis $14,000
Accrual Basis $24,500