Answer:
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Alexa Inc. purchased equipment in 2018 for $50,000 with no residual value. On December 31, 2020, accumulated depreciation using the straight-line method for financial reporting was $15,000. For tax purposes, Alexa uses MACRS depreciation resulting in $35,600 in accumulated depreciation for tax purposes on December 31, 2020. Taxable income was $100,000 for 2020 and the company's tax rate is 25%.
Required:
a. Determine the GAAP basis of equipment (net) on December 30, 2020.
b. Determine the tax basis of equipment on December 30, 2020.
Answer:
a. $35,000
b. $14,400
Explanation:
The computation is shown below;
a. GAAP basis of equipment (net) is
Purchase equipment $50,000
Less: accumulated depreciation for finnacial reporting -$15,000
Equipment (net) $35,000
b. Tax bais of equipment is
Purchase equipment $50,000
Less: accumulated deprecation for tax purposes - $35,600
Equipment net $14,400
The above should be considered and relevant too
Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2013, at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, 2013, he and the purchaser signed a contract to sell for $363,000. The sale took place on September 7, 2013. The closing statement showed the following disbursements:
Real estate agent's commission $21,780
Appraisal fee 600
Exterminator's certificate 300
Recording fees 800
Mortgage to First Bank 305,000
Cash to seller 34,520
Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2013, Wesley purchases another residence for $325,000. If an amount is zero, enter "0".
a. Wesley's recognized gain on the sale is $ 0
b. Wesley's adjusted basis for the new residence is $ 270000
c. Assume instead that the selling price is $800,000.Wesley's recognized gain is $287750 , and his adjusted basis for the new residence is $
270000
Answer:
a. Wesley's gain = $139,520, but due to section 121 exclusion, he doesn't need to recognize any gain at all.
b. Basis for the new residence is equal to its price = $325,000
c. if the sales price was $800,000, then the gain would = $576,520
section 121 exclusion = $250,000
recognized gain = $326,520
adjusted basis = $325,000
The recognized gain of Wesley will be 0.
The following can be depicted from the information given:
Amount realized = $339520
Less: Adjusted basis = ($200000)
Realized gain = $139,000
Less: 121 Exclusion = ($139000)
Recognized gain = 0
Wesley's adjusted basis for the new year will be the cost which is $325000.
Lastly, based on the new values, the recognized gain will be:
Amount realized = $776520
Less: Adjusted basis = ($200000)
Realized gain = $576520
Less: 121 Exclusion = ($250000)
Recognized gain = $326520
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An organization whose capacity is on that portion of the average unit cost curve that falls as output rises: has a facility that is below optimum operating level and should build a larger facility. has a facility that is above optimum operating level and should reduce facility size. is suffering from diseconomies of scale. has utilization higher than efficiency. has expected output higher than rated capacity
Answer:
has a facility that is below optimum operating level and should build a larger facility.
Explanation:
In the case when the organization whose capacity should be on the average unit cost curve where it would be decline when the output rises so this means that it has a facility i.e. lower than the optimal level of operation and should established the larger facility
Hence, the first option is correct
And, the other options would be incorrect
Use the following information to answer Questions 12 - 15. Below is selected data for Gertup Corporation as of 12/31/05: Gertup has maintained the same inventory levels throughout 2005. If end of year inventory turnover was increased to 12 through more efficient relationships with suppliers, how much cash would be freed up (pick closest number)
Answer:
the cash that should be freed up is $267
Explanation:
The computation of the cash that would be freed up is shown below:
As we know that
The inventory turnover is
= Cost of goods sold ÷ average inventory
12 = $14,800 ÷ average inventory
So, the average inventory is 1,233
Now the cash that should be freed up is
= 1,500 - 1,233
= $267
hence, the cash that should be freed up is $267
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 10% Actual return on plan assets, 9% Service cost, 2021 $ 340 January 1, 2021: Projected benefit obligation 2,450 Accumulated benefit obligation 2,150 Plan assets (fair value) 2,550 Prior service cost—AOCI (2021 amortization, $40) 340 Net gain—AOCI (2021 amortization, $6) 360 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021 275 Benefit payments to retirees, December 31, 2021 300 Required: 1. Determine pension expense for 2021. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
Answer:
1. Pension expense $291
2.A. Pension expense
Dr Pension expense $291
Dr Plan assets (expected plan assets) $255
Dr Net gain -aoci6
Cr Prior service cost- oci 40
Cr PBO $512
B. Gains and losses
Dr Loss-oci 25
Dr Plan assets 25
(c) funding
Dr Plan assets $275
Cr cash 275
D. retiree benefits for 2021.
Dr PBO 300
Cr Plan assets 300
Explanation:
1. Calculation to determine the Pension Expense
PENSION EXPENSE
Service cost (given) $340
Add Interest cost $172
Less Expected return on plan assets ($255)
Add Prior service cost $40
Less Net gain or (loss) (6))
PENSION EXPENSE $291
2. Preparation of the journal entries to record
(a) pension expense
Dr Pension expense $291
Dr Plan assets (expected plan assets) $255
Dr Net gain -aoci6
Cr Prior service cost- oci 40
Cr PBO (service cost + interest cost)$512
($340+$172)
b. gains and losses
Dr Loss-oci 25
Dr Plan assets 25
(c) funding
Dr Plan assets $275
Cr cash 275
D. retiree benefits for 2021.
Dr PBO 300
Cr Plan assets 300
Working :
Projected benefit obligation ($2,450) x Discount rate (.07) = $172 Interest cost
Plan assets (fair value) ($2,550) x Expected return on plan assets (.10) = $255
Plan assets (fair value) ($2,550) x Actual return on plan assets (.09) =$230
Gain or (loss on plan assets) $255-$230 = ($25) loss
Service cost (given) =$340
Prior service cost (given)= 40
Benefit payments to retirees, December 31, 2013= $300
Cash contributions to pension fund, December 31, 2021 (given)= 275
Net gain or (loss) (given) = (6)Net gain–AOCI (2021 amortization
Identify the opportunity below that could enable an employee to commit fraud. Group of answer choices An employee's spouse loses her job. The company does not have a clear policies and procedures for the employee to follow. The employee is experiencing financial hardship. An employee is upset that he was passed over for a promotion.
Answer:
The employee is experiencing financial hardship.
Explanation:
Fraud is best understood by the Fraud Triangle: pressure, opportunity and tone. Therefore for fraud to occur there must be pressure felt by employee for lack of funds, where opportunity to commit fraud exists and when the company's tone provides the means to justify employee's fraudulent behaviour.
In the given question, where an employee's spouse loses her job there is neither any opportunity nor tone of the company to commit fraud.
For the issue where company does not have a clear policies and procedures for the employee to follow, there is tone of the company to commit fraud but there is no pressure nor any opportunity to commit fraud.
The employee is experiencing financial hardship, this is a possible opportunity to commit fraud. As there is pressure and opportunity for the employee to go through it.
In the final option, the fact of being upset does creates a reason for fraud but due to lack of any financial pressure the fraud would not occur.
Delaware budgeted 35,000 barrels of oil for purchase in June for $90 per barrel. Direct labor budgeted in the chemical process was $240,000 for June. Factory overhead was budgeted at $400,000 during June. The inventories on June 1 were estimated to be:
Oil $15,200
P1 8,300
P2 8,600
Work in process 12,900
The desired inventories on June 30 were:
Oil $16,100
P1 9,400
P2 7,900
Work in process 13,500
Use the preceding information to prepare a cost of goods sold budget for June.
Answer:
See
Explanation:
Delaware chemical company
Cost of goods sold budget
Direct materials opening inventory
$15,200
Add: purchases (35,000 barrels × $90 per barrels)
$3,150,000
Less. Direct materials closing inventory
$16,100
Direct materials used $3,149,000
Direct labor $240,000
Factory overhead $400,000
Total manufacturing costs $3,789,100
Add: opening work in process $12,900
Cost of goods available for manufacture $3,802,000
Blue Skies Inc. is a retail gardening company that is piloting a new strategic initiative aimed at increasing gross profit. Currently, the company’s gross profit is 25% of sales, and its target gross profit percentage is 30%. The company’s current monthly sales revenue is $480,000.
The new initiative being piloted is to produce goods in-house instead of buying them from wholesale suppliers. Its in-house production process has two procedures. The makeup of the costs of production for Procedure 1 is 40% direct labor, 45% direct materials, and 15% overhead. The makeup of the costs of production for Procedure 2 is 50% direct labor, 25% direct materials, and 25% overhead. Assume that Procedure 1 costs twice as much as Procedure 2.
Required:
Determine what the cost of labor, materials, and overhead for both Procedures 1 and 2 would need to be for the company to meet its target gross profit.
1. Cost makeup of Procedure 1:
Direct Labor
Direct Materials
Overhead
Total
2. Cost makeup of Procedure 2:
Direct Labor
Direct Materials
Overhead
Total
Answer:
Cost of Procedure 1: $268,800
Cost of Procedure 2: $134,400
Explanation:
Sales $480,000.
Gross Profit 25% of $480,000.= $ 120,000
Cost of Goods Sold = 480,000-120,000= $ 360,000
Procedure 1 costs twice as much as Procedure 2
Process 1 costs $ 240,000 Process 2 costs $ 120,000
To get a gross profit of 30% the sales would increase by
0.25 480,000
0.3 x
x= 480,000*0.3/0.25= $576,000
Sales $576,000.
Gross Profit 30% of $576,000.= $ 172,800
Cost of Goods Sold = 576,000-172,800= $ 403,200
Procedure 1 costs twice as much as Procedure 2
Process 1 costs $ 268,800 Process 2 costs $ 134,400
Procedure 1
1. Cost makeup of Procedure 1:
45% direct materials, = 45% of $ 268,800 = $ 120,960
40% direct labor, = 40% of $ 268,800 = $ 107,520
15% overhead.= 15% of $ 268,800 = $ 40,320
Total $268,800
Procedure 2
2. Cost makeup of Procedure 2
25% direct materials,=25% of $ 134,400 = $ 33,600
50% direct labor,= 50% of $ 134,400 = $ 67,200
25% overhead.=25% of $ 134,400 = $ 33,600
Total 134,400
1. Cost makeup of Procedure 1:
Direct materials, $ 120,960
Direct labor, $ 107,520
Overhead. $ 40,320
Total $268,800
Procedure 2
2. Cost makeup of Procedure 2
Direct materials $ 33,600
Direct labor, $ 67,200
Overhead. $ 33,600
Total 134,400
The purpose of cascading the balanced scorecard throughout the organization is: _____________
a. To help all employees think about, discuss, and implement the corporate strategy.
b. To ensure strict hierarchical control of the organization.
c. To customize the organizational mission and goals for every employee.
d. To create detailed performance measures for each employee
Answer:
b. To ensure strict hierarchical control of the organization.
The purpose of cascading the balanced scorecard is b. To ensure strict hierarchical control of the organization.
What is cascading?Cascading is a term that describes the positions in an organization and how an organization is been set up from higher heirachy to lower heirachy.
Therefore, with cascading, hierarchical control of the organization can be checked and be monitored.
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Copper and nickel electroless plating processes are under consideration for printed circuit boards. The copper process has fixed costs of $110,000 per year with a variable cost of $50 per batch. The nickel process has a fixed cost of $85,000 per year and a variable cost of $90 per batch. Determine the number of batches that must be produced each year in order for the processes to break even.
Answer:
see explanation
Explanation:
The question has missing sales price information, however explanations are provided below
Break even point is the level at which a company makes neither a profit nor a loss.
Break even point (units) = Fixed Costs ÷ Contribution per unit
Step 1 :
Find Contribution per unit of each process and add the unit contributions to find the total unit contribution
Contribution = Sales - Variable Costs
Step 2
Find the Total Fixed Costs for both the copper process and nickel process.
Step 3
Determine the sales mix for copper process and nickel process
Step 4
Calculate the Break even units for the 2 processes combined. After that multiply the respective mixes to the break even point
Use the following information to answer question. Madelyn owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for $100 each. It costs Madelyn $20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested $100,000 in her factory and equipment: $50,000 from her savings and $50,000 borrowed at 10 percent (assume that she could have loaned her money out at 10 percent, too). Madelyn can work at a competing pottery factory for $40,000 per year.
Required:
The economic profit at madelyn's pottery factory is:_________
Answer:
$30,000
Explanation:
According to the scenario, computation of the given data are as follows,
Total number of pieces per year = 1,000
Selling price per piece = $100 per piece
So, Total revenue = $100 × 1,000 = $100,000
Raw material = $20,000
Investment = $100,000
So, interest on investment = 10% × $100,000 = $10,000
Opportunity cost = $40,000
So, we can calculate the economic profit by using following formula,
Economic profit = Total revenue - Raw material - interest on investment - Opportunity cost
By putting the value, we get
Economic profit = $100,000 - $20,000 - $10,000 - $40,000
= $30,000
definition of business by different authors
Answer:
The term business has been defined by different authors from time to time as follows: “A business is nothing more than a person of group of persons properly organize to produce or distribute goods or services.
Explanation:
Answer:
The term business has been defined by different authors from time to time as follows: “A business is nothing more than a person of group of persons properly organize to produce or distribute goods or services.
Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible budget for 20,000 units of production reflects sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. Assume that actual sales for the year are $480,000 (26,000 units), actual variable costs for the year are $112,000, and actual fixed costs for the year are $145,000. Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)
Answer: Check attachment
Explanation:
The flexible budget performance report for the year has been solved and attached.
Note that the selling price per unit was calculated as:
= 400,000 /20,000
= $20 per unit
Therefore, total sales was gotten as:
= 26000 × $20
= $520,000
Variable cost per unit was calculated as:
= 80,000/20,000
= $4 per unit
Then, total cost was:
= $4 × 26,000
= $104,000
Check attachment for further details.
Which of the following statement(s) is (are) true regarding the variance/standard deviation of a portfolio of two risky securities? I. The lower the coefficient of correlation between securities, the greater the reduction in the portfolio variance. II. There is a linear relationship between the securities' coefficient of correlation and the portfolio variance. III. The standard deviation of the portfolio decreases at an increasing rate as more stocks are added to the portfolio
Answer:
The degree to which the portfolio variance is reduced depends on the degree of correlation between securities
Explanation:
The variance of a portfolio of 2 risky assets can be equal to zero if the association or connection between the two securities is equal to minus one likewise the investment opportunity set of 2 risky assets shows that all risk-return is an association or combinations of any portfolio of the two securities.
The variance of a portfolio of risky securities is usually said to be the weighted sum of the securities' variances and covariances.
The standard deviation of a portfolio of risky securities is commonly defined as the square root of the weighted sum of the securities' variances and covariances.
The expected return of a portfolio of risky securities is said to be a weighted average of the securities' returns.
At the present time, Andalusian Limited (AL) has 5-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,438.04 per bond, carry a coupon rate of 14%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 35%. If AL wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (Note: Round your YTM rate to two decimal place.)
Answer:
2.69%
Explanation:
According to the scenario, computation of the given data are as follows,
Face value (FV) = $1,000
Time period = 5 years
Present Value (PV) = $1,438.04
Coupon rate = 14%
Payment (pmt) = 14% × $1,000 = $140
So, by using excel function find YTM, we get
YTM = 4.13%
So, After Tax cost = Rate ( 1 - tax rate)
= 4.13% ( 1 - 35%)
= 4.13% × 65%
= 2.685% or 2.69%
Excel function is attached below.
Superior Inc. is starting a new project. It plans to develop an online platform that allows for 3D printing of online purchases. This would effectively reduce the online purchases' delivery times to minutes. It expects this new product to be a great success and bring rapidly growing profits in the first few years. After that, it expects the competition to kick in which will reduce the growth of annual profits. The dividends on Superior Inc.'s shares will be growing accordingly. Here is the exact schedule of expected future dividends:
Most recently paid dividend is $4.
Expected annual growth rate of dividends for the first 3 years is 50%.
Expected annual growth rate of dividends after that is 10%.
Discount rate for this company is 15%.
Required:
Calculate the price per share of stock of Superior Inc.
Answer:
P0 = $216.18147448015 rounded off to $216.18
Explanation:
The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on g is the constant growth rate in dividends r is the discount rate or required rate of return
P0 = 4 * (1+0.5) / (1+0.15) + 4 * (1+0.5)^2 / (1+0.15)^2 +
4 * (1+0.5)^3 / (1+0.15)^3 + [(4 * (1+0.5)^3 * (1+0.1) / (0.15 - 0.1)) / (1+0.15)^3]
P0 = $216.18147448015 rounded off to $216.18
Chevron Phillips (CP) has put into place new laboratory equipment for the production of chemicals; the cost is $1,770,000 installed. CP borrows 48% of all capital needed, and the borrowing rate is 13.4%. In the 1st year, 25% of the principal borrowed will be paid back. The throughput rate for in-process test samples has increased the capacity of the lab, saving a net of $X per year. In this 1st year, depreciation is $362,000 and taxable income is $329,000.
Required:
a. What is the gross income or annual savings?
b. Determine the income tax for the 1st year assuming a marginal tax rate of 40%.
c. What is the after-tax cash flow for the 1st year?
Answer:
Chevron Phillips (CP)
a. The gross income or annual savings is:
= $804,846.
b. The income tax for the 1st year assuming a marginal tax rate of 40% is:
= $131,600.
c. The after-tax cash flow for the 1st year is:
= $559,400.
Explanation:
a) Data and Calculations;
Cost of new laboratory equipment = $1,770,000
Borrowed capital = $849,600 ($1,770,000 * 48%)
Borrowing rate = 13.4%
Borrowing interest expense for the first year = $113,846
Depreciation = $362,000
Taxable income = $329,000
Gross savings = $X
$X = $804,846 ($113,846 + $362,000 + $329,000)
Income tax for the 1st year:
Marginal tax rate = 40%
Taxable income = $329,000
= $131,600 ($329,000 * 40%)
After-tax Cash Flows for the 1st year:
Gross savings = $804,846
Interest expense 113,846
Depreciation 362,000
Taxable income $329,000
Income tax 131,600
Net income $197,400
Cash Flows:
Net income $197,400
Depreciation 362,000
After-tax cash flow $559,400
The closing process is also known as which of the following?
A. Project completion
B. Project postmortem
C. Project wake
D. Project parity
Answer:
A. Project completion is the answer
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Finance is best defined as
the tracking and documenting of money or things that are worth money.
the management of money and things that are worth money.
an item, such as a car or a house, that is worth money.
an amount of money a person or organization owes to another person or organization.
Answer:
the management of money and things that are worth money.
Explanation:
Finance is best defined as the management of money and things that are worth money.
Answer:
The answer is B
Explanation:
Suppose you want to deposit a certain amount of money into a savings account and then leave it alone to draw interest for the next 10 years. At the end of 10 years you would like to have $10,000 in the account. How much do you need to deposit today to make that happen?
Answer:
PV= FV / (1 + i)^n
Explanation:
Giving the following information:
Number of periods (n)= 10 years
Future value (FV)= $10,000
We were not provided with the interest rate. I will assume an interest rate of 7% compounded annually.
To calculate the initial investment, we need to use the following formula:
PV= FV / (1 + i)^n
PV= 10,000 / (1.07^10)
PV= $5,083.49
Initial investment= $5,083.49
Bob lives in Miami and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Bob does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Bob’s costs as either an implicit cost or an explicit cost of selling guitars.
a. The wholesale cost for the guitars that Bob pays the manufacturer
b. The wages and utility bills that Bob pays
c. The salary Bob could earn if he worked as a financial advisor
d. The rental income Bob could receive if he chose to rent out his showroom
Answer and Explanation:
The identification of each transaction as an explicit cost or implicit cost is as follows
a. It is an explicit cost as the cost would be paid to the factors of production
b. It is also an explicit cost as the cost would be paid to the factors of production
c. It is an implicit cost as it is considered to be the hidden cost
d. It is also an implicit cost as it is considered to be the hidden cost
Write a short paragraph describing how segmentation could make your marketing efforts more effective. In your response to your manager, provide at least one specific example of how using segmentation could more effectively reach customers. In addition, describe at least two specific action steps you would suggest taking in order to effectively segment your customers.
Explanation:
Market segmentation consists of directing the business strategy to satisfy the desires and needs of a specific audience.
The use of segmentation can make marketing efforts more effective because the company finds out the profile of its customer, its needs, its income, its location, and in this way develops or improves its products and services in order to satisfy its customers. potential. An example of market segmentation is demographic segmentation that, through data, identifies consumer information such as age, income, gender to improve the product's strategy.
For demographic segmentation to be effective, it is necessary for companies to conduct market research in order to delimit their audience and then determine communication from the data and information found, in order to attract and retain consumers to increase their positioning and profitability. in the market.
Stephanie Robbins is attempting to perform an inventory analysis on one of her most popular products. Annual demand for this product is 5,000 units; carrying cost is $50 per unit per year; order costs for her company typically run nearly $30 per order; and lead time averages 10 days. (Assume 250 working days per year.) a) The economic order quantity is b) The average inventory is c) The optimal number of orders per year is d) The optimal number of working days between orders is e) The total annual inventory cost (carrying costordering cost) is f) The reorder point is
Solution :
Given :
The annual demand, [tex]$D=5000$[/tex] units
Ordering cost, [tex]$S=\$30$[/tex]
Carrying cost, [tex]$H=\$50$[/tex]
Lead time, L = 10 days
Number of days per year = 250 days
So, average demand is d = [tex]$\frac{D}{250}$[/tex] days
= [tex]$\frac{5000}{250}$[/tex] = 20 units
a). The economic order quantity, Q = [tex]$\sqrt{\frac{2DS}{H}}$[/tex]
[tex]$=\sqrt{\frac{2\times 5000 \times 30}{50}}$[/tex]
= 77 units
b). Average inventory = [tex]$\frac{Q}{2}$[/tex]
[tex]$=\frac{77}{2}$[/tex]
≈ 39 units
c). Number of orders per year = [tex]$\frac{D}{Q}$[/tex]
[tex]$=\frac{5000}{77}$[/tex]
= 65 units
d). Time between orders = [tex]$\frac{Q}{D}$[/tex] x number of days per year
[tex]$=\frac{77}{5000} \times250$[/tex]
= 3.85
e). Annual ordering cost = [tex]$\frac{D}{Q} \times S$[/tex]
[tex]$=\frac{5000}{77} \times 30$[/tex]
= $ 1948.05
Annual carrying cost = [tex]$\frac{Q}{2} \times H$[/tex]
[tex]$=\frac{77}{2} \times 50$[/tex]
= $ 1925
Total annual cost of inventory = $ 1948.05 + $ 1925
= $ 3873.05
f). Reorder point = [tex]$d \times L$[/tex]
[tex]$=20 \times 10$[/tex]
[tex]$=200$[/tex] units
A year-end review of accounts receivable and estimated uncollectible percentages revealed the following: Category Accounts Receivable Uncollectible percentages 1-30 days $40,000 1.5% 31-60 days $10,000 8.0% 61-90 days $6,000 15.0% The beginning balance of Allowance for Doubtful Accounts is $400 (credit). Based on this information, the bad debt expense for the year is:
Answer:
$1,900
Explanation:
Calculation to determine what the bad debt expense for the year is:
Accounts Receivable Uncollectible percentages 1-30 days $40,000* 1.5% =$600
31-60 days $10,000 *8.0% =$800
61-90 days $6,000 *15.0% =$900
Total $2,300
Bad debt expense =$2,300-400
Bad debt expense =$1,900
Therefore Based on this information, the bad debt expense for the year is:$1,900
A bicameral legislature is made up of how many bodies?
O one
O two
O three
O four
Answer:
two
Explanation:
A bicameral legislature is made up of two bodies. Thus, option B is the correct option.
What is a bicameral legislature?A bicameral legislature, which is distinguished by having two distinct assemblies, chambers, or houses, is one that practices bicameralism. Unicameralism, in which all members discuss and vote as a single body, is distinct from bicameralism. Bicameralism will be used by about 40% of national legislatures throughout the world as of 2022, compared to 60% at the national level and significantly more at the subnational level for unicameralism.
The techniques used to elect or choose the members of the two chambers sometimes varied from jurisdiction to jurisdiction. This frequently results in the membership of the two chambers being significantly different. Primary legislation frequently has to be approved by majorities in both houses of the legislature in order to be passed. If this is the case, the legislature may be seen as the epitome of bicameralism.
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The following financial information is available on Rawls Manufacturing Company: Current per share market price $48.00 Current per share dividend $3.50 Current per share earnings $6.00 Beta 1.1 Expected rate of return on market 12.0% Risk-free rate 6.0% Expected long-term growth rate 5.0% Rawls can issue new common stock to net the company $44 per share. Determine the cost of external equity capital using the dividend capitalization model approach. (Compute answer to the nearest 0.1%.)
Answer:
13.4%
Explanation:
Calculation to determine the cost of external equity capital using the dividend capitalization model approach
Using this formula
Cost of external equity capital = (D1/Pnet) + g
Let plug in the formula
Cost of external equity capital =[$3.50(1.05)/$44] + 0.05
Cost of external equity capital= 0.1335 *100
Cost of external equity capital= 13.4%
Therefore the cost of external equity capital using the dividend capitalization model approach is 13.4%
The grouping of living things according to similar characteristics is
Answer:
see the explanation
Explanation:
A species can be defined as a group of organisms with similar features, and these organisms are capable of breeding and produce fertile offspring. You are probably aware of the fact that horses and donkeys belong to the same kingdom, phylum, class, order, family as well as genus but they are from different species.
On January 1, 20Y2, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of $43,830, beginning on December 31, 20Y2. Journalize the entries to record the following:
20Y2 Jan. 1. Issued the note for cash at its face amount.
Dec. 31. Paid the annual payment on the note, which consisted of interest of $14,000 and principal of $29,830.
20Y5 Dec. 31. Paid the annual payment on the note, included $6,253 of interest. The remainder of the payment reduced the principal balance on the note.
Answer:
Hebron Company
Journal Entries:
Jan. 1, 20Y2:
Debit Cash $175,000
Credit 8% Note Payable (Ventsam Bank) $175,000
To record the issuance of the note.
Dec. 31, 20Y2:
Debit 8% Note Payable (Ventsam Bank) $29,830
Debit Interest Expense $14,000
Credit Cash $43,830
To record the first payment of the note with interest.
Dec. 31, 20Y5:
Debit 8% Note Payable (Ventsam Bank) $29,830
Debit Interest Expense $6,253
Credit Cash $36,083
To record the fourth payment of the note with interest.
Explanation:
a) Data and Analysis:
Jan. 1, 20Y2: Cash $175,000 8% Note Payable (Ventsam Bank) $175,000
Dec. 31, 20Y2: 8% Note Payable (Ventsam Bank) $29,830 Interest Expense $14,000 Cash $43,830
Dec. 31, 20Y5: 8% Note Payable (Ventsam Bank) $29,830 Interest Expense $6,253 Cash $36,083
Production Budget Pasadena Candle Inc. projected sales of 800,000 candles for the year. The estimated January 1 inventory i 35,000 units, and the desired December 31 inventory is 20,000 units.
Prepare a production budget report in units for Pasadena Candle Inc.
Answer and Explanation:
The preparation of the production budget is presented below;
Expected sales units 800,000 candles
Add: Desired closing inventory, Dec 31 20,000 units
Total units available 820,000 units
Subtract: Estimated opening inventory,Jan 1 -35,000 units
Total units to be produced 785,000 units
Hence, the above format should be prepared for the production budget
Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given:
Costs
Units Trans.-in Materials Conv.
Work in process, July 1 30 $1,590 $ 0 $ 513
Transferred in during July ?
Completed during July 105
Work in process, July 31 15
Costs added during July
$4,410
$1,050
$1,767
The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
Mountainside's equivalent units for conversion using FIFO would be:___________
a. 114.
b. 105.
c. 93.
d. 9.
Answer:
c. 93.
Explanation:
The computation of the conversion equivalent units under FIFO method is given below:
= Beginning work in process + unit started & completed + ending work in process
= 30 × 30% + (105 - 30) × 100% + 15 × 60%
= 9 units + 75 units + 9 units
= 93 units
Hence, the third option is correct