The amount that should be reported as the capital is $6,000
Calculation of the capital amount:The following formula should be used.
= Initial cash investment + Investments made + Income received - Drawings
= $2,000 + $0 + $5,000 - $1,000
= $6,000
As per the cash basis accounting method, the cash revenues is more than the cash expenses so the same should be considered as an income
Hence, the amount reported as capital is $6,000.
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Selected transactions for Sheridan Company are presented below in journal form (without explanations).
Date Account Title Debit Credit
May 5 Accounts Receivable 4,400
Service Revenue 4,400
12 Cash 1,930
Accounts Receivable 1,930
15 Cash 2,190
Service Revenue 2,190
Post the transactions to T-accounts. (Post entries in the order of journal entries presented in the question.)
Cash
5/55/125/15 5/55/125/15
5/55/125/15 5/55/125/15
Accounts Receivable
5/55/125/15
5+55+125+15=555555555....
Sperry Company had beginning inventory of $80,000, purchased merchandise during the period for $140,000, and had ending inventory of $95,000. How much was goods available for sale? A. $175.000 B. $155,000 C. $315,000 D. $125,000 E. None of these
Answer:
cost of goods available for sale= $220,000
Explanation:
Giving the following information:
Beginning inventory of $80,000
Purchased merchandise for $140,000
To calculate the cost of goods available for sale, we need to use the following formula:
cost of goods available for sale= beginning inventory + purchase
cost of goods available for sale= 80,000 + 140,000
cost of goods available for sale= $220,000
The most recent price activity in this chart is a quadruple top breakout. The box size is $0.50 and the reversal size is three boxes. What is the price objective for the breakout using the horizontal count method?a. $19.00b. $21.50c. $12.50d. $22.00
Answer:
a. $19.00
Explanation:
Note: The graph is as attached below
The low of the column where a quadruple top breakout occurs is $8.5 and width is 7 and box size is 0.5
The width of the pattern is 7 which is multiplied by 0.5 which is the box size and the reversal size of 3 for an Extension estimate (7 x 0.5 x 3 = $10.5).
Now, $10.5 is added to the low of the column and hence price objective is $10.5 + $8.5 = $19
Scubapro Corporation currently has 500,000 shares of common stock outstanding and plans to issue 200,000 more shares in a seasoned equity offering. The current shareholders have pre-emptive rights on any new issues of common stock by Scubapro Corporation. How many shares would an investor who currently has 20,000 shares, have the right to buy if she exercises her pre-emptive right?A) 200,000 shares.
B) 120,000 shares.
C) 20,000 shares.
D) 12,000 shares.
E) 8,000 shares.
Answer:
Scubapro Corporation
The investor who currently has 20,000 shares has the right to buy this number of shares, if she exercises her preemptive right:
E) 8,000 shares.
Explanation:
Data and Calculations:
Outstanding common stock = 500,000
Planned issue of additional shares = 200,000
Proportion of new issue to outstanding = 0.40 (200,000/500,000)
For an investor with 20,000 shares, she has the right to buy 8,000 (20,000 * 0.40) additional shares.
In constructing a common-size income statement, depreciation will be______. A. omitted since it is a noncash expense. B. expressed as a percentage of sales. C. added back to convert net income to cash flows. D. expressed as a percentage of total assets. E. expressed as a percentage of gross fixed assets.
Answer:
B. expressed as a percentage of sales.
Explanation:
The common size income statement is the income statement where n each line the item on the income statement should be expressed as a percentage of sales
In the given options, the option B is correct as it shows that the depreciation would be expressed in sales percentage
Therefore all other options are wrong
Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, trucks, and SUVs. Doing this helps Toyota manage the ______ of industrial demand.
a. volatility
b. division
c. durability
d. development
Answer:
a. volatility
Explanation:
From the question, we are informed that "Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, trucks, and SUVs. In case of Doing this it helps Toyota manage the volatility of industrial demand.
volatility of industrial demand do occur where there is uncertainty as far as demand is concerned in the consumer products , as a result of this most firms to catch up with compitition, growing their sales an lot more , so in this case Toyota still continues to manufacture its traditionally fueled cars, trucks, and SUVs even though there is Mirai for the U.S. market.
Geralds manufacturing firm sold goods worth $6000 to some customers on credit in the month of January. His customers plan to pay him the entire amount at once in March. Gerald plans to record and recognize this income in the business’s accounts in March. Which accounting method does Geralds business follow?
His business follows the (________) method of accounting.
Answer:
Cash accounting method
Explanation:
The cash accounting method records receipts and expenses during the period in which cash changes hands. In this method, revenue will be recorded when payment from a customer is received. Expenses are not recorded unless money is paid out. In short, revenues and expenses are recognized and recorded only when cash is received or paid.
Cash accounting contrasts with the accrual accounting system, which recognizes revenues and expenses when their respective events occur.
Blankenship Company operates a factory with two departments, X and Y. The utilities to heat and light the manufacturing facility would most likely be allocated to departments X and Y on the basis of:a. Square Footage occupiedb. Machine Hoursc. Direct labor hoursd. Units sold
Answer:
a. Square Footage occupied
Explanation:
Machine hours is the cost drive of utilities (cost object); it is not the basis of allocation. Direct labor hours is the cost drive of utilities (cost object); it is not the basis of allocation. Unit sold is the basis of allocation of advertising; it is not the allocation bases of utilities.
Utilities expenses such as heat, water, and lighting are generally allocated based area occupied by the department. Hence, the option “square footage occupied” is the correct answer.
Shawn goes to the library to pick up a copy of a common tax form used file taxes. Which of the following is MOST likely the form that Shawn got?
1099
W-2
1776
1040
Answer:
Shawn would choose form 1040 filing tax form.
Explanation:
The answer is D.) 1040
I got a picture of the answer.
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Tatum can borrow at 7.15 percent. The company currently has no debt and the cost of equity is 11.55 percent. The current value of the firm is $670,000. The corporate tax rate is 25 percent. What will the value be if the company borrows $385,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Value of the firm __________
Answer:
$766,250
Explanation:
The value of the firm is calculated as follows:
Value of firm = Current value + (Borrowing *Tax rate)
Value of firm = $670,000 + ($385,000*25%)
Value of firm = $670,000 + $96,250
Value of firm = $766,250
The value of the firm will be $766,250 if it borrows $385,000 and uses the proceeds to repurchase shares.
Preparing an income and expense statement helps in answering the question, "Where does all my money go?" This statement takes __________and ___________subtracts to determine an individual's or a family's cash surplus or deficit situation.
Correct question read;
"This statement takes __________and subtracts_________ to determine an individual's or a family's cash surplus or deficit situation.
Answer:
note of income; the expenses
Explanation:
Remember, the income and expense statement as the name implies is a financial statement that takes note of all incomes into a financial account and then subtracting identified expenses from the income to determine if there was a loss or profit.
By following this method, one ultimately would be able to answer the question, "Where does all my money go?".
Question 1 of 10
What is one way banks can recover money they have loaned to someone who
has stopped making payments?
O A. Banks can require the borrower's friends and family to pay off the
loan.
B. Banks can have collection agencies seize part of the borrower's
income.
C. Banks can force the borrower's employer to fire him or her
immediately
D. Banks can make the borrower work at the bank for no salary.
Answer:
B. Banks can have collection agencies seize part of the borrower's income.
Explanation:
Hope it helps
Banks can recover money they have loaned to someone who has stopped making payments the banks can have collection agencies seize part of the borrower's income. Thus, option (b) is correct.
What is bank?
The term Bank refers to a financial institution that deals with money. For the aim of saving and investing, the individual deposits money into a personal account. Additionally, banks can offer loans and ATM services. There are two different kinds of banks, such as public and private ones.
The debtors give the loan to the bank, but as long as someone is not returned on payment, the bank can hire collection agencies. The collection agencies' main role is to collect money with interest from debtors.
Therefore, option (b) is correct.
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Due to the efficiency of its supply chain as a result of technology and resourcefulness, Zara can deliver products to its stores quicker than their competitors with:_______.
A. reverse logistics.
B. less electronic data interchanges.
C. longer lead times.
D. shorter lead times.
E. more stockouts.
Answer:
D. shorter lead times.
Explanation:
Most of Zara's suppliers are actually working near Zara's headquarters in northern Spain. This increases production costs, but also increases supply chain efficiency. Daily sales reports are sent by all the stores around the world and headquarters then replenish the products that are selling in higher volumes. Lead times are extremely short, stockouts are very rare, and inventory levels are extremely low. It is basically a fashion industry version of Toyota's JIT.
A private not-for-profit entity is working to create a cure for a disease. The charity starts the year with one asset, cash of $700,000. Net assets without donor restrictions are $400,000. Net assets with donor restrictions are $300,000. Of the restricted net assets, $160,000 is to be held and used to buy equipment, $40,000 is to be used for salaries, and the remaining $100,000 must be held permanently. The permanently held amount must be invested with 70 percent of any subsequent income used to cover advertising for fundraising purposes. The rest of the income is unrestricted.
During the current year, this health care entity has the following transactions:
1. Receives unrestricted cash gifts of $210,000.
2. Pays salaries of $80,000, with $20,000 of that amount coming from purpose-restricted donated funds. Of the total salaries, 40 percent is for administrative personnel. The remainder is divided evenly among individuals working on research to cure the disease and individuals employed for fundraising purposes.
3. Buys equipment for $300,000 by signing a long-term note for $250,000 and using restricted funds for the remainder. Of this equipment, 80 percent is used in research. The remainder is split evenly between administrative activities and fundraising. The donor of the restricted funds made no stipulation about the reporting of the equipment purchase.
4. Collects membership dues of $30,000 in cash. Members receive a reasonable amount of value in exchange for these dues including a monthly newsletter that describes research activities. By the end of the year, 112/112 of this money had been earned.
5. Receives $10,000 in cash from a donor. The money must be conveyed to a separate charity doing work on a related disease.
6. Receives investment income of $13,000 from the permanently restricted net assets.
Pays $2,000 for advertising. The money comes from the income earned in (f).
Receives an unrestricted pledge of $100,000 that will be collected in three years. The entity expects to collect the entire amount. The pledge has a present value of $78,000. Related interest (considered contribution revenue) of $5,000 is earned prior to the end of the year.
7. Computes depreciation on the equipment bought in (c) as $20,000.
8. Spends $93,000 on research supplies that are used up during the year.
9. Owes salaries of $5,000 at the end of the year. None of this amount will be paid from restricted net assets. Half of the salaries are for individuals doing fundraising, and half for individuals doing research.
10. Receives a donated painting that qualifies as a museum piece being added to the entity’s collection of art work that is being preserved and displayed to the public. The entity has a policy that the proceeds from any sold piece will be used to buy replacement art. Officials do not want to record this gift if possible..
A. Prepare a statement of financial position for this not-for-profit entity for the end of the current year.
B. Prepare a statement of activities for this not-for-profit entity for this year.
Answer and Explanation:
Net assets:
Donor without restrictions $488400
Donor with restrictions. $320100
Liabilities:
Notes payable. $250000
Salaries payable. $5000
Deferred revenue $27500
Donated amount in separate entity $10000.
$1101000
Assets:
Cash $738000
Equipment $280000
Receivables $83000
$1101000
Notes:
1. Cash.
Beginning cash $700,000
contributions $210,000
less salaries $80,000
less equipment purchase $50,000
Membership dues $30,000
Add contribution $10,000
Add investment income $13,000
less advertisement pay $2,000
less pay for supplies $93,000
2.Pledges receivable:
$78,000 plus the $5,000 in interest for period
3. Equipment. acquired equipment at $300,000 during the year.
4. Accumulated Depreciation: depreciation amounted to $20,000 for the equipment purchased till date.
5. Deferred Revenue: deferred revenue amounts to 27500 in membership dues since they've only earned 1/12 of the $30000 in exchange transactions.
6. Notes Payable: amount accrued for equipment
7. Salaries Payable: salaries owed employees as at end of the year
9. Donated Amount in Separate Entity. The organization does not hold variance powers for the amount contributed by a donor and so it's a liability
Customer groups represent different segments if: ___________.a. Their needs require different products/services or different prices. b. Other elements of the canvas need to change in order to reach them. c. They can be categorized into different groups. d. Distinctions only matter if tailoring parts of the business to reach some customers makes it more difficult to reach other customers.
Answer:
a. Their needs require different products/services or different prices
Explanation:
A customer segment is a term in business that is used to describe a group of consumers with identical or related needs, behaviors, or other characteristics. For example Mass Market, Niche Market, etc.
However, customer groups represent separate segments based on the following:
1. their needs mandate and justify a distinct offer
2. they are sold through various distribution means.
3. they need different types of connection or arrangement.
4. they are ready to pay for various items of the offer
Which of the following are frequently mentioned goals of the Federal Reserve? Check all that apply.
Answer:
Stability in the financial system
– Price stability—fighting inflation
– Full employment
– Economic growth
– Interest rate stability
– Currency stability
In 2010, real GDP was $13.2 trillion and nominal GDP was $14.6 trillion. What was the GDP deflator for that year?a. 9.6% lower b. 9.6% higher c. 10.6% lower . d. 10.6% higher
Answer:
d. 10.6% higher
Explanation:
Given that;
Real GDP = $13.2 trillion
Nominal GDP = $14.6 trillion
GDP deflator = (Nominal GDP/Real GDP)× 100)
Hence,
GDP deflator = (14.6 / 13.2 ) × 100
GDP deflator = 110.6%
Thus,
= 110.6 - 100
= 10.6% higher
You decide to invest $20,500 in Bank of America and $14,500 in Twitter. What is the portfolioâs beta? Bank of America beta: 1.27 Twitter beta: 1.96
Answer:
Portfolio Beta = 1.555857143 rounded off to 1.56
Explanation:
The portfolio beta is the function of the weighted average of the individual stock betas that form up the portfolio. The formula to calculate the beta of a portfolio containing two stock is as follows,
Portfolio Beta = wA * Beta of A + wB * Beta of B
Where,
w is the weight of each stock
As the investment in Stock of Bank of America is 20500 and the investment in stock of Twitter is 14500, the total investment in the portfolio will be,
Total investment = 20500 + 14500 = 35000
Portfolio Beta = 20500 / 35000 * 1.27 + 14500 / 35000 * 1.96
Portfolio Beta = 1.555857143 rounded off to 1.56
A stock has a correlation with the market of 0.53. The standard deviation of the market is 29%, and the standard deviation of the stock is 32%. What is the stock's beta?
Answer: 0.58
Explanation:
Given the parameters in the question, Beta can be solved by the following formula;
= Correlation with market * ( Standard deviation of stock / Standard deviation of market)
= 0.53 * (32%/29%)
= 0.58
Which of the following is a type of liability?
Answer:
Accounts Payable
Explanation:
Accounts Payable is the amount of money owed to its investors/creditors. Thus creating debt for the company, creating a liability.
On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accountin g for cash discounts What is the correct entry for Flores on November 17, assuming the correct payment was received on that date? A) cash 7,840 Accounts receivable 7,840 B) cash 7,840 Sales discounts 8,00 Accounts receivablhe C) 7,84 cash Sales Accouts receivable D) 8,000 Cash Sales discounts l6 8,00 Accounts receivable 160 Sales
Answer:
Following are the solution to this question:
Explanation:
In all the given choices some of the data is missing so, its correct entry can be defined as follows
Cash account $7,840
Sales discount $160
To Accounts receivable $8,000
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:
Fixed Component per Month Variable Component per Job Actual Total for February
Revenue $280 $39,250
Technician wages $8,400 $8,250
Mobile lab operating expenses $4,800 $31 $9,290
Office expenses $2,400 $3 $2,700
Advertising expenses $1,580 $1,650
Insurance $2,870 $2,870
Miscellaneous expenses $970 $1 $425
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $31 per job, and the actual mobile lab operating expenses for February were $9,290. The company expected to work 150 jobs in February, but actually worked 154 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February.
Answer:
I used an excel spreadsheet since there is not enough room here. I ordered the given data:
Fixed Variable Actual Total
Revenue $280 $39,250
Technician wages $8,400 $8,250
Mobile lab operating exp. $4,800 $31 $9,290
Office expenses $2,400 $3 $2,700
Advertising expenses $1,580 $1,650
Insurance $2,870 $2,870
Miscellaneous expenses $970 $1 $425
The actual results yielded an unfavorable operating income variance. Operating income = $14,065, unfavorable variance = $2,645
The following transactions were completed by the company. The company completed consulting work for a client and immediately collected $7,000 cash earned. The company completed commission work for a client and sent a bill for $5,500 to be received within 30 days. The company paid an assistant $2,150 cash as wages for the period. The company collected $2,750 cash as a partial payment for the amount owed by the client in transaction b. The company paid $1,000 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
Answer:
The Company
The Impact of Each Transaction on the Accounting Equation:
1. Assets (Cash + $7,000) = Liabilities + Equity (Retained Earnings + $7,000)
2. Assets (Accounts Receivable + $5,500) = Liabilities + Equity (Retained Earnings + $5,500)
3. Assets (Cash -$2,150) = Liabilities + Equity (Retained Earnings -$2,150)
4. Assets (Cash +$2,750 Accounts Receivable -$2,750) = Liabilities + Equity
5. Assets (Cash -$1,000) = Liabilities + Equity (Retained Earnings -$1,000)
Explanation:
The Company applies the accounting equation, which states that Assets = Liabilities + Equity. With each transaction, the accounting equation is demonstrated as shown above. This means that each transaction that is properly recorded affects the accounting equation in two ways. Note that the accounting equation is the basis for the double-entry system of financial accounting.
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is units. Southeastern estimates its annual holding cost for this item to be $ per unit. The cost to place and process an order from the supplier is $. The company operates days per year, and the lead time to receive an order from the supplier is working days. a) What is the economic order quantity? nothing units (round your response to the nearest whole number).
Answer:
A. Economic order quantity= 319
B. Annual holding costs= 3,669
C. Annual ordering costs= 3,669
D. 154
Explanation:
a) Calculation for the economic order quantity
Using this formula
Economic order quantity=√2*Demand*Cost order/Annual holding cost
Let plug in the formula
Economic order quantity=√2*15,400*76/23
Economic order quantity=√2,340,800/23
Economic order quantity=√101,774
Economic order quantity= 319
b) Calculation for annual holding costs
Using this formula
Annual holding costs=Economic order quantity/2*Annual holding cost
Let plug in the formula
Annual holding costs=319/2*23
Annual holding costs= 3,669
c) Calculation for the annual ordering costs
Using this formula
Annual ordering costs=Demand/Economic order quantity*Cost order
Let plug in the formula
Annual ordering costs=15,400/319*76
Annual ordering costs= 3,669
d) Calculation for reorder point
Using this formula
Reorder point=Demand/Numbers of days the company operate per year*Lead time
Let plug in the formula
Reorder point=15,400/300 days per year*3
Reorder point= 154
A series of monthly cash flows is deposited into an account that earns 12% nominal interest compounded monthly. Each monthly deposit is equal to $2,100. The first monthly deposit occurred on June 1, 2008 and the last monthly deposit will be on January 1, 2015. The account also has equivalent quarterly withdrawals from it. The first quarterly withdrawal is equal to $5,000 and occurred on October 1, 2008. The last $5,000 withdrawal will occur on January 1, 2015. How much remains in the account after the last withdrawal?
Answer:
The amount left in the account after last withdrawal is $61,945
Explanation:
The first monthly deposit occurred on June 1, 2008 and the last monthly deposit will be on January 1, 2015 = 80 deposit
Monthly deposit = 2,100
Interest rate = 12% / 1% per month
Firstly, we calculate the future worth of the monthly deposit
FW = A(F/A, i, n)
A = 2,100, i = 1%, n= 80
FW = $2100*[(1+0.01)^80 - 1 / 0.01]
FW = $2100*[2.216715 - 1 / 0.01]
FW = $2100*(121.671)
FW = $255,509.10
We calculate the effective interest rate
i(effective) = (1 + i nominal monthly interest rate)^n - 1
i `%, n = 3(no of months in quarter)
i (effective) = (1+0.01)^3 - 1
i (effective) = (1.01)^3 - 1
i (effective) = 1.030301 - 1
i (effective) = 0.030301
i (effective) = 3.0301%
The effective quarterly interest rate is 3.0301%
We calculate the future worth of the quarterly drawings
FW = A[(1+i)^n - 1 / i]
A = 5,000(drawing), i = 3.0301%, n = 26(number of drawings)
FW = 5,000*[(1+0.030301)^26 - 1 / 0.030301]
FW = 5,000*[2.17303717 - 1 / 0.030301]
FW = 5,000*(38.71282)
FW = $193,564.10
The future worth of the quarterly withdrawal is $193,564.10
We calculate the amount left in the account after last withdrawal
Amount left in account = FW(monthly deposits) - FW(quarterly drawings)
Amount left in account = $255,509.10 - $193,564.10
Amount left in account = $61,945
Thus, the amount left in the account after last withdrawal is $61,945
if the owner of a business invests $20,000 in her business , which 2 accounts are affected?
Answer:
The owner invests personal cash in the business. The company's asset account Cash increases. ... (If the company is a corporation, then the Common Stock account(s) will increase.)