Answer:
A) Determine the transaction price that Concrete Always should compute for this agreement.
total transaction price = contract price ($174,000) + expected value of the bonus
expected value of the bonus:
$43,200 x 50% = $21,600($43,200 - $10,800) x 25% = $8,100($43,200 - $10,800 - $10,800) x 25% = $5,400total = $35,100total transaction price = $174,000 + $35,100 = $209,100
B) Assume that Jeff Heun has reviewed his work schedule and decided that it makes sense to complete this project on time. Assuming that he now believes that the probability for completing the project on time is 90% and otherwise it will be finished 1 week late, determine the transaction price.
total transaction price = contract price ($174,000) + expected value of the bonus
expected value of the bonus:
$43,200 x 90% = $38,880($43,200 - $10,800) x 10% = $3,240total = $42,120total transaction price = $174,000 + $42,120 = $216,120
g "At the current exchange rate of $1.40 per British pound, a one-day pass to Worldwide Theme Park of Florida sells for 54 pounds at travel agencies throughout Great Britain. If the exchange rate increases to $1.70 per pound, what will happen to the price of a one-day pass sold in Great Britain?"
Answer:
The price will fall to 44.47 pounds
Explanation:
Calculation for what will happen to the price of a one-day pass sold in Great Britain
Using this formula for the First step
Sales pounds × Current exchange rate
54 pounds x $1.40 = $75.6
Second step
75.6/Increase in exchange rate of $1.70
= 44.47 pounds
Therefore the price will fall to 44.47 pounds
You short-sell 600 shares of Rock Creek Fly Fishing Co., now selling for $38 per share. If you want to limit your loss to $3,600, you should place a stop-buy order at ___.A. A. $32.00 B. $38.00 C. $44.00 D. $64.00
Answer:
$44.00
Explanation:
You are required to find where to place a stop-buy order
Amount received from short sale
= 600 x $38
= $22,800
Loss = $3,600 = 600p - 22,800
=3,600 + 22800 = 600p
26400 = 600p
P = 26400/600
P = $44.00
you should place a stop-buy order at $44.00
An investor has sold short stock worth $20,000 in a margin account, depositing the Regulation T margin requirement. If the market value of the stock falls to $16,000, what is the Selling Power in the account
Answer:
The selling power in the account is $20,000.
Explanation:
Credit - Short market value = Equity %
Sale $20,000 $20,000
Margin $10,000 $10,000
Total $30,000 $20,000 $10,000 50%
If the market value falls to $16,000, the account will show;
Credit - Short market value = Equity %
$30,000 $16,000 $14,000
To support a $16,000 stock position at 50% margin, equity of $8,000 is required. Since the account has $14,000 of equity, the excess of $10,000 may be borrowed and it's the
SMA amount. With $10,000 of SMA amount, twice this amount may be purchased or sold short in other marginal securities.
McLin, Inc., is a calendar year S corporation. Its AAA balance is zero. Determine the tax aspects of the following transactions. If an amount is zero, enter "0". a. McLin holds $90,000 of AEP. Tobias, the sole shareholder, has an adjusted basis of $80,000 in his stock. Tobias is paid a $90,000 salary. Ignore the 20% QBID.
Answer:
$10,000
Explanation:
Given that:
McLin holds $90,000 of AEP, this implies what is salary is made of;
Tobias, the sole shareholder, has an adjusted basis of $80,000 in his stock.
Tobias is paid a $90,000 salary income.
Ignore the 20% QBID
We are to determine the tax aspects of the transactions
Since the company receives a $90000 for salary expense. Thus Tobias basis is zero, then :
The tax aspect of the transaction is : ($90000 - $80000)
The tax aspect of the transaction = $10,000
Alden Corp. has the following balances as of December 31, 2019:Total Assets $90,000Total Liabilities 60,000Total Equity 30,000Calculate the debt to equity ratio. A. 0.64.B. 0.92.C. 1.56.D. 256.
Answer:
2.00
Explanation:
Calculation of the debt to equity ratio
Using this formula
Debt to equity ratio= Total liabilities/Total Shareholders equity
Where,
Total liabilities=60,000
Total Shareholders equity =30,000
Let plug in the formula
Debt to equity ratio=60,000/30,000
Debt to equity ratio =2.00
Therefore debt to equity ratio will be 2.00
Advertising expenses are a significant component of the cost of goods sold. Listed below is a frequency distribution showing the advertising expenditures for 40 manufacturing companies. Estimate the mean, median, and standard deviation of advertising expense.
Advertising Expenditure ($millions) Number of companies
$20 to under $30 9
30 to under 40 13
40 to under 50 21
50 to under 60 18
60 to under 70 14
Total 75
Answer:
Mean = 47
Median = 47.38
Standard Deviation = 12.73
Explanation:
Note: You wrote " 40 manufacturing companies, but the total number of companies you actually listed is 75, definitely you meant 75.
Let y represent the range of advertising expenditure, f represent the number of companies, x represent the midpoint of the range of advertising expenditure.
y f x fx fx²
$20 to under $30 9 25 225 5625
$30 to under $40 13 35 455 15925
$40 to under $50 21 45 945 42525
$50 to under $60 18 55 990 54450
$60 to under $70 14 65 910 59150
n = 75 [tex]\sum fx = 3525[/tex]
[tex]\sum fx^2 = 177675[/tex]
Mean, [tex]\bar{X} = \frac{\sum fx}{n}[/tex]
[tex]\bar{X} = \frac{3525}{75} \\\bar{X} = 47[/tex]
Standard Deviation:
[tex]SD = \sqrt{\frac{n \sum fx^2 - (\sum fx)^2}{n(n-1)} } \\SD = \sqrt{\frac{(75*177675) - (3525)^2}{75(75-1)} }\\SD = 12.73[/tex]
Median:
Get the cumulative frequencies(cf)
y f cf
$20 to under $30 9 9
$30 to under $40 13 22
$40 to under $50 21 43
$50 to under $60 18 61
$60 to under $70 14 75
N = 75
Median = Size of (N/2)th item
Median = Size of (75/2)th item
Median = Size of (37.5)th item
The median class = 40 to under 50
Lower limit, L₁ = 40
Cumulative frequency, cf = 22
f = 21
Class Width, h = 10
Median = [tex]L_1 + \frac{ (N/2) - cf}{f} * h\\[/tex]
Median = [tex]40 + \frac{ (75/2) - 22}{21} * 10\\[/tex]
Median = 47.38
What does a descriptive study seek to accomplish?
Twist Corp. has a current accounts receivable balance of $457,615. Credit sales for the year just ended were $2,940,600.a. What is the company's receivables turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
b. What is the company's days' sales in receivables? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
c. How long did it take on average for credit customers to pay off their accounts during the past year? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Answer and Explanation:
The computations are as follows
a. For company receivable turnover
As we know it is
= Credit Sales ÷ current account receivable balance
= $2,940,600 ÷ $457,615
= 6.43 times
b.
Now
company's days' sales in receivables is
= 365 ÷ Receivables turnover ratio
= 365 ÷ 6.43
= 56.77 days
c. Therefore the average collection period is the same as days sales in receivable i.e 56.77 days
When you take your first job, you decide to start saving right away for your retirement. You put $5,000 per year into a saving plan, which interest rate 10% per year. Five years later, you move to another job and stop making contributions to the saving plan. If the first plan continued to earn interest for another 35 years, determine the future worth in year 40.
Answer:
FV= $857,840.94
Explanation:
Giving the following information:
First investment:
Annual deposit= $5,000 per year
Interest rate= 10%
Number of years= 5
Second investment:
Number of years= 35
Interest rate= 10%
Lumpsum= first investment
First, we need to calculate the future value of the first investment. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,000*[(1.1^5) - 1]} / 0.10
FV= $30,525.5
Now, the future value of the second investment.
FV= PV*(1+i)^n
FV= 30,525.5*(1.1^35)
FV= $857,840.94
Which of the following statements regarding a firm’s optimal capital structure is true? The optimal capital structure maximizes the firm’s earnings per share (EPS). The optimal capital structure maximizes the firm’s cost of equity. The optimal capital structure maximizes the firm’s cost of debt. The optimal capital structure maximizes the firm’s stock price.
Answer: The optimal capital structure maximizes the firm’s stock price.
Explanation:
The Capital Structure of a company refers to the proportion of debt vs equity that it chooses to use to fund its Assets and operations.
The goal of management is to use the capital structure to fund the company in such a way that the market value of a company increases.
The Market value is reflected by the firm's stock price so the optimal capital structure is meant to maximize the firm’s stock price.
The sales budget for Perrier Inc. is forecasted as follows:
Month Sales Revenue
May $130,000
June 150,000
July 200,000
August 130,000
To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales: 60 percent in the month of sale. 20 percent in the month following sale. 15 percent in the second month following sale.
5 percent uncollectible.
60 percent in the month of sale.
20 percent in the month following sale.
15 percent in the second month following sale.
The company gives a 2 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $22,000, of which $7,000 represents uncollected March sales and $15,000 represents uncollected April sales. Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-month summary of estimated cash collections.
Answer:
budgeted cash collections
May June July
sales revenue 130,000 150,000 200,000
cash sales (60% x 0.98) 76,440 88,200 117,600
accounts receivable (March) 5,250
accounts receivable (April) 7,500 5,625
accounts receivable (May) 26,000 19,500
accounts receivable (June) 30,000
total cash collections 219,190 269,825 367,100
I used net accounts receivables, that means I already discounted the 5% of collectibles.
Jewelcorp just began trading securities. The company is a closely-held corporation that is not trading stock on a national securities exchange. It has several dozen shareholders and $9 million in assets. Which of the following is true concerning the company’s requirement to report to the SEC?Not required to report information to the SEC. Required to report major business developments and must file annual and quarterly financial reports. Must file annual and quarterly financial reports Requirement to file depends on the company’s assets and shareholder base.
Answer:
Jewelcorp
Requirement to report to the SEC:
Not required to report information to the SEC.
Explanation:
Jewelcorp is not required to report information to the SEC. It is only publicly traded companies that are required to file their financial reports with the SEC.
The SEC Act of 1934 does not require private companies to file financial reports with the Security Exchange Commission. However, a private company can be required to file financial reports with SEC if it has over 500 common stockholders and $10 million in assets, which Jewelcorp does not possess.
In the United States banking policies and procedures are set by the:
-president
-senate
-House of representatives
-federal reserve
Answer:
Federal Reserve.
Explanation:
Federal Reserve is a large central bank in Washington, D.C. that was founded in 1913. It lends money to other, smaller banks.
You have an opportunity to invest in Australia at an interest rate of 8%. Moreover, you expect the Australian dollar (A$) to appreciate by 2%. Your effective return from this investment is
Answer:
10.16%
Explanation:
The computation of the effective return for this investment is shown below:
Let us assume that we invested an amount in Australian dollars 100
The return is 8%
After one year, the amount is 108
Now the converting amount is 110.16 (108 × 102%)
Now the effective rate for this investment is
= 110.16 - 100
= 10.16%
A company has net income of $199,000, a profit margin of 9.50 percent, and an accounts receivable balance of $106,108. Assuming 74 percent of sales are on credit, what is the company's days' sales in receivables
Answer:
Receivables days = 25 days
Explanation:
The receivable days is the average length of time it takes a business to receive cash from customers in respect of credit sales made.
It is calculated as follows:
Receivables days = Receivables / Credit sales × 365 days.
The credit sales is missing , hence we need to work it out as follows:
Net income =profit margin × total sales revenue
let sales value be represented by "y"
199,000 = 9.50% × y
y = 199,000/0.095
y= 2,094,736.84
Total sales revenue = 2,094,736.84
Credit sales = 74% × total sales revenue
= 74% × 2,094,736.84=1,550,105.263
Receivables days =106,108/1,550,105.26× 365 days= 24.98
Receivables days = 25 days
You have just taken out a $ 23 comma 000 car loan with a 4 % APR, compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward interest? (Note: Be careful not to round any intermediate steps less than six decimal places.)
Answer:
Interest = $75.90
Principal = $347.64
Explanation:
First find the payment that is required per month. It will be an Annuity payment as the present value of the loan is given.
The loan is for 5 years compounded monthly so period is;
= 5 years * 12 months
= 60
Interest = 4/12
Present Value of Annuity= Payment * (1 - (1 + r) ^ -n)/r
23,000 = Payment * (1 - ( 1 + 4/12%) ^ -⁶⁰)/ 4/12%
23,000 = Payment * 54.304
Payment = 23,000/54.304
= $423.54
Interest Payment is;
= 4/12% * 23,000
= $75.90
Amount going towards Principal;
= 423.54 - 75.90
= $347.64
Carpenters, Inc., a manufacturing company, acquired equipment on January 1, 2017 for $ 520 comma 000. Estimated useful life of the equipment was seven years and the estimated residual value was $ 20 comma 000. On January 1, 2020, after using the equipment for three years, the total estimated useful life has been revised to nine total years. Residual value remains unchanged. The company uses the straightminusline method of depreciation. Calculate depreciation expense for 2020. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
Answer:
Annual depreciation= $47,618
Explanation:
Giving the following information:
Purchasing price= $520,000
Useful life= 7 years
Residual value= $20,000
New useful life= 9 years
First, we need to determine the annual depreciation and accumulated depreciation before January 2020.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (520,000 - 20,000)/7= 71,429
Accumulate depreciation= 71,429*3= $214,287
New annual depreciation:
Book value= 520,000 - 214,287= 305,713
Annual depreciation= (305,713 - 20,000) / 6
Annual depreciation= $47,618
All automobile makers around the world are in the same strategic group because they manufacture automobiles.
a) true
b) false
Answer:
The answer is False.
Explanation:
False, all automobile maker of the world does not form the same strategic group on the basis of manufacturing the automobiles because the strategic group refers to the process to follow the same strategy. Since all around the world different automobile maker work in different economies with a different set of strategies that varies according to the economic situations. For example, the strategy to work in a developed economy will be different from the developing economy. Therefore, all automobile makers will not follow the same strategy so it will not be in the same strategic group.
Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr. 1 Beginning inventory 470 $ 2.37 Apr. 20 Purchase 410 2.72 Dunbar sold 580 units of inventory during the month. Ending inventory assuming FIFO would be:
Answer:
Ending inventory= $816
Explanation:
Giving the following information:
Apr. 1 Beginning inventory 470 $2.37
Apr. 20 Purchase 410 $2.72
Dunbar sold 580 units of inventory during the month.
To calculate the ending inventory under the FIFO (first-in, first-out) method, we need to use the cost of the last units incorporated into inventory.
Units in ending inventory= 880 - 580= 300
Ending inventory= 300*2.72= $816
Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Net income $ 87,100
Depreciation expense 13,800
Gain on sale of land 6,500
Increase in merchandise inventory 3,850
Increase in accounts payable 7,950
Answer:
The answer is $98,500
Explanation:
There are two ways to cash provided or used by operating activities - Direct method and indirect method. In direct method, the first line item is Net income or net loss.
Net income------------------------ $87,100
Depreciation expense---------- 13,800
Gain on sale of land------------ ($6,500)
Increase in merchandise inventory-------------------------------------------------($3,850)
Increase in accounts payable $7,950
Net cash provided or used by operating activities---------------$98,500
The implication of the expectations theory that expected returns for a holding period must be the same for bonds of different maturities depends on the assumption that________.
1. Yiels curves usually slope downward
2. Yiels curves usually slope downward
3. Instruments with different maturities are perfect subtitute
4. Savers are usually risk averse
Answer:
i think the answer is intruments with different matuirties are perfect subtitute. i'm not sure but i think this is the answer.
Explanation:
Common Stockholders' Profitability Analysis A company reports the following:
net income : $375,000
Preferred dividends : 75,000
Average stockholders' equity 2,500,000
Average common stockholders' equity : 1,875,000
Determine :
(a) the rate earned on stockholders' equity
(b) the rate earned on common stockholders' equity.
Answer:
(A) Rate earned on stockholder's equity=15%
(B) Rate earned on common stockhloder's equity= 16%
Explanation:
A company reports the following profitability analysis
Net income of $375,000
Preferred dividend of $75,000
Average stockhloder's equity of $2,500,000
Average common stockhloder's equity of $1,875,000
(A) The rate earned on stockholder's equity can be calculated as follows
= Net income/Average stockholders equity
= $375,000/$2,500,000
= 0.15×100
= 15%
(B) The rate earned on common stock holder's equity can be calculated as follows
= Net income-Preferred dividend/Average common equity
= $375,000-$75,000/$1,875,000
= $300,000/$1,875,000
= 0.16×100
= 16%
Hence the rate earned on stockholder's equity and common stockhloder's equity is 15% and 16% respectively.
The main goal of monetary policy is to shift Choose one or more: A. aggregate demand. B. short-run aggregate supply. C. long-run aggregate supply.
Answer: aggregate demand
Explanation:
Monetary policy, is the demand side of an economic policy that is used by the government through the central bank in order to control the money supply that is available in the economy so as to achieve macroeconomic goals that will bring about economic growth.
The main goal of monetary policy is to shift the aggregate demand. Increase or decrease in money supply can either shift the aggregate demand to the right or to the left depending on whether the government wants to use the expansionary or the contractionary method.
24. You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan will have a 12% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months
Answer:
The most expensive car can be afforded is = $17290.89
Explanation:
The down payment of a new car = $4000
The mothly payment (annuity ) = $350
Interest rate on the rate = 12% = 12% / 12 per month.
Now we have to calculate the most expensive car that can be afforded with the finance time of 48 months.
Below is the calculation:
[tex]Present \ value = annuity \times \left [ \frac{1-(1+r)^{-n}}{r} \right ] \\= 350 \times \left [ \frac{1-(1+ 0.01)^{-48}}{0.01} \right ] \\= 13290.89 \\[/tex]
[tex]\text{Total value of car} = savings + present \ value \\= 4000 + 13290.89 \\= 17290.89[/tex]
When a price ceiling is in effect:_______
a. there is no competition for goods.
b. demanders compete for goods in short supply by accepting reductions in quality.
c. suppliers compete for customers by inefficiently raising quality levels.
d. suppliers have an incentive to provide really good customer service.
Answer:
i got answer c
(i took the test)
____ materials are materials that are no longer serviceable, have been discarded, or are a by-product of the production process. Group of answer choices Obsolete Excess Waste Scrap
Answer:
Scrap
Explanation:
The scrap material is that material that is not usable for the or the services are no longer available and these products are not used so far for the production process. It is totally and completely discarded and used as a by product production process
Hence, the correct option is scrap
And all other options are wrong and incorrect
Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2014 are presented below.
End of Year Beginning of Year
Cash and cash equivalents $ 795 $ 72
Accounts receivable (net) 2,035 1,942
Inventory 898 900
Other current assets 326 303
Total current assets $4,054 $3,217
Total current liabilities $2,014 $1,601
For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million.
Instructions:
Compute the current ratio, current cash debt coverage, accounts receivable turnover, average collection period, inventory turnover, and days in inventory at the end of the current year.
Answer:Please see explanation for answers
Explanation:
A) Current Ratio = Current Assets / Current Liabilities
Total Current Assets = $4,054million
Total Current Liabilities = $2,014million
Current Ratio = 4,054 / 2,014 = 2.01 : 1
B. Current Cash Debt Coverage Ratio = Cash flow Provided by Operating Activities / Average Current Liabilities
Average Current Liabilities = 2,014 + 1,601= 3,615 / 2 = $1,807.5
Current Cash Debt Coverage Ratio = 1,251 / 1,807.5 = 0.6921
C. Accounts receivable Turnover = Net Sales / Average Accounts Receivables
Average Account Receivable = 2,035 + 1,942= 3,977 / 2 = $1,988.50million
Net Sales = $8,258million
Account Receivable Turnover = 8,258million / 1,988.50million = 4.15 Times
D. Average Collection Period: 365 / Account Receivable Turnover
Average Collection Period = 365 / 4.15 = 87.95 Days
E. Inventory Turnover = Cost of Goods Sold / Average Inventory
Cost of Goods Sold = 5,328million ,
Average Inventory = 898 + 900 =1,798 / 2 = 899
Inventory Turnover = 5,328 / 899 = 5.93 Times
F. Days in Inventory = 365 / Inventory Turnover Ratio
Days in Inventory = 365 / 5.93 = 61.55 Days
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 20,000 portable grills, 50,000 stationary grills, and 5,000 smokers. Information on the three models is as follows:
Portable Stationary Smokers
Price $90 $200 $250
Variable cost per unit 45 130 140
Total fixed cost is $2,128,500.
Required:
1. What is the sales mix of portable grills to stationary grills to smokers?
2. Compute the break-even quantity of each product.
Answer:
1.
Sales mix
Portable grills = 20000/75000 = 4/15 or 26.67%
Stationary grills = 50000/75000 = 2/3 or 66.67%
Smokers = 5000/75000 = 1/15 or 6.67%
2.
Break even in units
Overall = 2128500 / 66 = 32250 units
Portable = 32250 * 4/15 = 8600
Stationary = 32250 * 2/3 = 21500
Smokers = 32250 * 1/15 = 2150
Explanation:
1.
The sales mix is the proportion of sales in units that each product holds in the in relation to the total overall sales in units of all products. The sales mix is calculated as follows,
Sales mix proportion of Product A = Sales in units Product A/Total number of sales in units of all products
The total number of sales in units of all products is,
Total sales in units = 20000 + 50000 + 5000 = 75000 units
Sales mix
Portable grills = 20000/75000 = 4/15 or 26.67%
Stationary grills = 50000/75000 = 2/3 or 66.67%
Smokers = 5000/75000 = 1/15 or 6.67%
2.
We will compute the overall break even point in units in then divide it according to the sales mix to calculate the break even in units of each product.
To calculate the overall break even in units, we need to determine the weighted average contribution per unit.
Weighted average contribution per unit = 4/15 * (90 - 45) + 2/3 * (200 - 130) + 1/15 * (250 - 140)
Weighted average contribution per unit = 66
Break even in units
Overall = 2128500 / 66 = 32250 units
Portable = 32250 * 4/15 = 8600
Stationary = 32250 * 2/3 = 21500
Smokers = 32250 * 1/15 = 2150
The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company's financial condition and performance. Cute Camel Woodcraft Company is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet. Cute Camel Woodcraft CompanyBalance Sheet for Year Ending December 31 (Millions of Dollars) Year 2 Year 1 Year 2 Year 1 Assets Liabilities and equity Current assets: Cash and equivalents Accounts rece vable Inventories Total current assets Net fixed assets Net plant and equipment Current liabilities: $2,767 Accounts payable $0 176 996 $0 1,266 3,712 8,437 1,013 Accruals 2,970 Notes payable $6,750 Total current liabilities 937 $937 2,813 $3,750 Long-term debt 3,515 8,250 Total debt $4,687 Common equity: Common stock Retained earnings 9,141 7,313 3,937 Common stock Retained earnings Total common equity 9,141 7,313 Y 3,937 11,250 $15,000 $14,063 Total assets $18,750 15,000 Total liabilities and equity $18,750 Given the information in the preceding balance sheet-and assuming that Cute Camel Woodcraft Company has 50 million shares of common stock outstanding-read each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet.
Cute Camel's pool of relatively liquid assets, which are available to support the company's current and future sales, decreased from Year 1 to Year 2
This statement is,_________ because:
A) Cute Camel's total current asset balance actually increased from $6,750 million to $8,437 million between Year 1 and Year 2
B) Cute Camel's total current liabilities balance decreased by $1,687 mililion between Year 1 and Year 2
C) Cute Camel's total current liabilities balance increased from $1,013 million to $1,266 million between Year 1 and Year 2
Answer:
1. Year 2 Cash and Cash Equivalents = Current Assets - Accounts Receivable - Inventories
= 8,437 - 1,266 - 3,712
= $3,459
2. Year 2 Net Plant & equipment = Total assets - Total current assets
= $18,750 - 8,437
= $10,313
3. Year 2 Total current liability = Accruals + Notes Payable
= $176 + 996
= $1,172
4. Year 2 Retained earnings = Total Common Equity - Common Stock
= $14,063 - 9,141
= $4,922
5. This statement is False because:
A) Cute Camel's total current asset balance actually increased from $6,750 million to $8,437 million between Year 1 and Year 2
Current Assets are a pool of relatively liquid assets, which are available to support the company's current and future sales and they increased from Year 1 to 2.
Snapshot of balance sheet.
The balance sheet is a financial and accounting system the provides a summary of the financial conditions, that is balance of the individual and the organization. May be made for sole proprietorship or partnership.
The answer to the statement is cute carmel total C.A increased between 1 and 2 year.
The balance sheet gives us information regarding the company. Both th investors and the analyst of the cute Carmel woodcraft company use it for accessing their performance.The sheet is made for the first and the second year basis. Year 2 the Cash and Cash Equivalents = Current Assets - Accounts Receivable - Inventories. Hence equals $3,459Next the both years Net Plant & equipment = Total assets - Total current assets Thus is $10,313. Thus Total CL = Accruals + N.Payable = $1,172. A 2 Retained earnings = Total Common Equity - Common Stock = $4,922.Hence the option A is correct.
Learn more about the balance sheet.
brainly.com/question/16776658.
Griffin's Goat Farm, Inc., has sales of $604,000, costs of $255,000, depreciation expense of $53,000, interest expense of $35,000, and a tax rate of 23 percent. What is the net income for this firm
Answer:
The answer is $200,970
Explanation:
Solution
Given that
Now
Sales =$604,000
Costs= $255,000
Depreciation=$53,000
Thus
EBIT (Earnings before taxes and interest)=$296,000
The interest Expense = $35,000
Taxable income =$200,970
Taxes($261,000 * 23% =$60,030
The net income = $200,970
Therefore the net income for the firm is $200,970
Answer:
$200,970
Explanation:
Hope this helps