Answer:
true
Explanation:
public limited companies can sell its shares to the the public ,a share represents part ownership of a companies hence the statement is true
Question 5725
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5
Michael Arthur deposited $2,500 in a new regular savings account that earns 5% Interest compounded semiannually. He made no other deposits or withdrawals.
a) What was the amount in the account at the end of 1 year?
b) What is the compound Interest?
Answer:
The amount in the account at the end of 1 year will be $ 2,626.56, and the interest generated will be $ 126.56.
Explanation:
Given that Michael Arthur deposited $ 2,500 in a new regular savings account that earns 5% interest compounded semiannually, and has made no other deposits or withdrawals, to determine what was the amount in the account at the end of 1 year and what is the compound interest the following calculations must be performed:
2,500 x (1 + 0.05 / 2) ^ 1x2 = X
2,500 x 1,025 ^ 2 = X
2,500 x 1.050625 = X
2,626.56 = X
2626.56 - 2500 = 126.56
Therefore, the amount in the account at the end of 1 year will be $ 2,626.56, and the interest generated will be $ 126.56.
Which business type pays double tax to the government
Answer:
C corporation income
Explanation:
On November 15, 2018, X Corp., an accrual basis taxpayer, enters into a contract which will provide the corporation with the use of manufacturing equipment for the 5 year period beginning on December 1, 2018. X Corp. paid $100,000 for the 5-year period on December 1, 2018. How much, if any of the payment can X Corp. deduct in 2018
Answer: $20000
Explanation:
Since $100,000 is paid for the contract which will provide the use of manufacturing equipment for 5 years, the payment that can be deducted for each of the 5 years will be an equal payment.
Therefore, the payment that X Corp. can deduct in 2018 will be:
= $100,000 / 5
= $20000
Firm ML, a non-corporate taxpayer, exchanged residential rental property plus $15,000 cash for 20 acres of investment land with a $200,000 FMV. ML used the straight-line method to compute depreciation on the rental property.
a. Assuming that ML's exchange was negotiated at arm's length, what is the FMV of the rental property?
b. If the adjusted basis of the rental property is $158,000, compute ML's realized and recognized gain. What is the character of the recognized gain?
c. Compute ML's basis in the 20 acres of investment land.
Answer:
A) $215,000
B) realized gain = $57,000
recognized gain = $15,000
C) $158,000
Explanation:
cash exchanged with the rental property ( boot ) = $15,00
A) Assuming ML's exchange is done at arm's length
FMV of property = $200,000 + $15,000 = $215,000
B) Taking adjusted basis of rental property = $158,000
ML's realized gain = FMV of property at arm's length - adjusted basis
= $215000 - $158000 = $57,000
ML's recognized gain = $15,000
The character of the recognized gain is that it will be lower of the boot amount or realized gain and this is because no gain or loss is registered/recognized in the transaction ( exchange ) except with the boot received
C) Determine ML's basis in the 20 acres of investment land
= $158,000
All of the following are examples of current account transactions EXCEPT: Elimination Tool Select one answer A The United States purchases 200 tons of Canadian bacon. B Argentina purchases 10,000 French berets. C Mexico purchases 500 Spanish matador outfits. D Germany pays 1 million euro for the services of Swiss accountants. E China purchases $10 billion of United States government securities.
Answer:
E
Explanation:
the current account of a country measures the value of the trade balance, transfers and the net income
the component of the current account includes
trade balance - it measures the value of the import and export of goods and services of a country.
net income - measures the value of the income received by a country's residents less the income paid to foreigners
transfers - it includes income sent home by a country's citizens working outside the country
Asset income - measures changes in the asset income
this transaction - China purchases $10 billion of United States government securities - would be included in the capital account
Assume that in a certain economy, the LM curve is given by Y = 2,000r – 2,000 + 2(M/P) + u, where u is a shock that is equal to +200 half the time and –200 half the time, and the IS curve is given by Y = 8,000 – 2,000r. The price level (P) is fixed at 1.0. The natural rate of output is 4,000. The government wants to keep output as close as possible to 4,000 and does not care about anything else. Consider the following two policy rules: i. Set the money supply M equal to 1,000 and keep it there. ii. Manipulate M from day to day to keep the interest rate constant at 2 percent. a. Under rule i, what will Y be when u = +200? Under rule i, what will Y be when u = –200? b. Under rule ii, what will Y be when u = +200? Under rule ii, what will Y be when u = –200? c. Which rule will keep output closer to 4,000?
Answer:
a-1. Y = 4,100
a-2. Y = 3,900
b-1. Y = 7,960
b-2. Y = 7,960
c. The rule that will keep output closer to 4,000 is rule i. Set the money supply M equal to 1,000 and keep it there.
Explanation:
M curve: Y = 2,000r – 2,000 + 2(M/P) + u ………………… (1)
IS curve: Y = 8,000 – 2,000r ………………………………………. (2)
At equilibrium, LM = IS. To obtain this, we equate equations (1) and (2) and solve as follows:
2,000r – 2,000 + 2(M/P) + u = 8,000 – 2,000r
2,000r – 2,000 + 2(M/P) + u - 8,000 + 2,000r = 0
4,000r – 10,000 + 2(M/P) + u = 0
Since P = 1.0 and fixed, we have:
4,000r – 10,000 + 2(M/1.0) + u = 0 …………………………. (3)
a-1. Under rule i, what will Y be when u = +200?
With this condition, we have:
M = 1,000
Substituting the relevant values into equation (3) and solve for r, we have:
4,000r – 10,000 + (2*(1,000/1.0)) + 200 = 0
4,000r – 7,800 = 0
4,000r = 7,800
r = 7,800 / 4000
r = 1.95
Substituting r = 1.95 into either equation (1) or (2), in case we use equation (2), we have:
Y = 8,000 – (2,000 * 1.95)
Y = 4,100
a-2. Under rule i, what will Y be when u = –200?
With this condition, we have:
M = 1,000
Substituting the relevant values into equation (3) and solve for r, we have:
4,000r – 10,000 + (2*(1,000/1.0)) - 200 = 0
4,000r – 8,200 = 0
r = 8,200 / 4,000
r = 2.05
Substituting r = 2.05 into equation (2), we have:
Y = 8,000 – (2,000 * 2.05)
Y = 3,900
b-1. Under rule ii, what will Y be when u = +200?
With this condition, we have:
r = 2%, or 0.02
Substituting the relevant values into equation (3) and solve for M, we have:
(4,000 * 0.02) - 10,000 + (2*(M/1.0)) + 200 = 0
80 - 10,000 + 200 + (2*(M/1.0)) = 0
-9720 + (2*(M/1.0)) = 0
2*(M/1.0) = 9720
M / 1 = 9720 / 2
M = 4,860
Substituting r = 4,860 and other given values into equation (1), we have:
Y = (2000 * 0.02) - 2,000 + (2 * (4860/1)) + 200
Y = 7,960
b-2. Under rule ii, what will Y be when u = –200?
With this condition, we still have:
r = 2%, or 0.02
Substituting the relevant values into equation (3) and solve for M, we have:
(4,000 * 0.02) - 10,000 + (2*(M/1.0)) - 200 = 0
80 - 10,000 - 200 + (2*(M/1.0)) = 0
-10120 + (2*(M/1.0)) = 0
2*(M/1.0) = 10120
M / 1 = 10120 / 2
M = 5,060
Substituting r = 5,060 and other given values into equation (1), we have:
Y = (2000 * 0.02) - 2,000 + (2 * (5060/1)) - 200
Y = 7,960
c. Which rule will keep output closer to 4,000?
Based on the above asnwers to a-1 where Y = 4,100 and a-2 where Y = 3,900; the rule that will keep output closer to 4,000 is rule i. Set the money supply M equal to 1,000 and keep it there.
Rodriguez Corporation issues 13,000 shares of its common stock for $130,900 cash on February 20.
Prepare journal entries to record this event under each of the following situations :
1) the stock has a $8 par value.
2) The stock has neither par nor stated value
3) The stock has an $4 stated value.
Answer:
1. Dr Cash $130,900
Cr Common stock, $8 par value $104,000
Cr Paid-in capital in excess of par value, common stock $26,900
2. Dr Cash $130,900
Cr Common stock, no-par value $130,900
Dr Cash $130,900
Cr Common stock, $4 stated value $52,000
Cr Paid-in capital in excess of stated value, common stock $78,900
Explanation:
1. Preparation of the journal entries to record the stock has a $8 par value
Dr Cash $130,900
Cr Common stock, $8 par value $104,000
(13,000 shares*$8 par value)
Cr Paid-in capital in excess of par value, common stock $26,900
($130,900-$104,000)
2. Preparation of the journal entries to record The stock has neither par nor stated value
Dr Cash $130,900
Cr Common stock, no-par value $130,900
3. Preparation of the journal entries to record The stock has an $4 stated value
Dr Cash $130,900
Cr Common stock, $4 stated value $52,000
(13,000 shares*$4 par value)
Cr Paid-in capital in excess of stated value, common stock $78,900
($130,900-$52,000)
Colquhoun International purchases a warehouse for $311,000. The best estimate of the salvage value at the time of purchase was $16,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years.
Required:
a. Calculate annual depreciation expense for the first four years.
b. Determine the depreciation expense for the final fifteen years of the asset’s life.
Answer:
a. $11,800
b. $16,520
Explanation:
Depreciation expense using straight line method is calculeted as :
Deprecation expense = (Cost - Salvage Value) ÷ Estimated useful life
therefore,
Annual depreciation expense for the first four years.
Deprecation expense = ($311,000 - $16,000) ÷ 25 = $11,800
The depreciation expense for the final fifteen years of the asset’s life.
Depreciable Amount = Cost - Salvage Value - Accumulated depreciation
= $311,000 - $16,000 - ($11,800 x 4)
= $247,800
Deprecation expense = $247,800 ÷ 15 = $16,520
Computing Depreciation and Accounting for a Change of Estimate Lambert Company acquired machinery costing $110,000 on January 2, 2019. At that time, Lambert estimated that the useful life of the equipment was 6 years and that the residual value would be $15,000 at the end of its useful life. Compute depreciation expense for this asset for 2019, 2020, and 2021 using the: a. straight-line method. Round to the nearest dollar. 2019 Answer 2020 Answer 2021 Answer b. double-declining-balance method. Round to the nearest dollar. 2019 Answer 2020 Answer 2021 Answer c. Assume that on January 2, 2021, Lambert revised its estimate of the useful life to 7 years and changed its estimate of the residual value to $10,000. What would be the new depreciation expense in 2021 for each of the above depreciation methods
Answer: please see answers in explanation column
Explanation:
a) Under straight-line method,
Depreciation expense =(Cost - residual value) ÷ No of years =
= ($110,000 - $15,000) ÷ 6 years = $15,833 which refers to the yearly depreciation expense.
Therefore, the yearly depreciation expense of $15,833 will be applied to the Years 2019, 2020 and 2021.
Total depreciation for all the three years equals
$15,833 x 3 years = $47,499.
(b) The double-declining method
which is 2 x Straight - Line Depreciation Percentage x Book value
Straight - Line Depreciation Percentage
100% ÷ 6 years = 16.67%,
Therefore, Year 2019= 2 x 16.67% x $110,000 = $36,663
Year 2020=2 x 16.67% x $73,337 ($110,000 - $36,663) = $24,443
Year 2021=2 x 16.67% x $48,894 ($73,337 - $24,443) = $16,296
The total of the three years ie 2019 to 2021 =$77,402
(c) Given that in 2021 which is after 2 years, the revised estimated useful life becomes 7 years and the residual value is $10,000
Depreciation Using the straight-line method becomes
Depreciation expense =(Cost - residual value) ÷ No of years
But Net Book Value, which is the cost at the end of 2019
$110,000 - $15,833 x 2 years = $78,334
Therefore, Depreciation expense= ($78,334 - $10,000) ÷ 7 years = $9,762
Also,
Using double-declining method,
Straight - Line Depreciation Percentage = 100% ÷ 7 years = 14.29%,
Year 2021,
2 x 14.29% x $48,894 ($73,337 - $24,443) = $13,969
Gilberto Company currently manufactures 75,000 units per year of one of its crucial parts. Variable costs are $2.45 per unit, fixed costs related to making this part are $85,000 per year, and allocated fixed costs are $72,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.65 per unit guaranteed for a three-year period.
Required:
Calculate the total incremental cost of making 75,000 and buying 75,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?
Answer:
$2,000
Explanation:
The total incremental cost of making 75,000 and buying 75,000 units.
Carole was an avid investor. She purchased 500 shares of common stock for GH Inc. based on an article she read about the publicly traded company.
Which of the following would Carole be considered?
•
A partner in GH Inc.
•
A member of the Board of Directors of GH Inc.
•
A stockholder of GH Inc.
•
A corporate officer of GH Inc
Answer:
Option C
Explanation:
Carole has 500 shares and thus he is the share holder of the GH Inc. Since a shareholder is equivalent to some one who holds the company's stock and hence Carole can be considered as stock holder too. Stock holders are not member of board of directors however, they vote while selection of members of board of directors.
The are not partners as they have no share in investment and profit.
Thus, option C is the correct answer
People who are confident but not
about their own talents are more
impressive than people who don't believe in their own abilities.
A.aggressive
B.arrogant
C.insecure
D.embarrassed
Answer:
C. insecure
when youre insecure you dont feel good about yourself or your abilities
According to the World Bank, the 31 wealthiest countries in the world tended to have much lower rates of ___________ and much higher rates of ___________ when compared to the 40 poorest countries.
A. Infant mortality; adult literacy
B. Internet users; life expectancy
C. Adult literacy; cell phone subscriptions
D. Access to water; access to sanitation
Answer:
Internet users;life expectancy Access to water; access to sanitationi HOPE IT'S HELPplease mark in brain list
According to the World Bank, the 31 wealthiest countries in the world tended to have much lower rates of . Infant mortality and much higher rates of adult literacy when compared to the 40 poorest countries. Option (a) is correct.
What do you mean by Literacy?The ability to read, write, speak, and listen in a way that enables us to successfully communicate and make sense of the outside world is known as literacy.
According to a National Research Council assessment, the United States' healthcare system is one of the reasons why life expectancy is shorter than in other industrialized countries. Life expectancy declines are most noticeable among US people 50 and older.
Generally speaking, wealthy countries have a longer average life expectancy than poorer countries, which can be justified by higher standards of living, more effective health systems, and greater financial commitment to factors that influence health (e.g. sanitation, housing, education).
Therefore, Option (a) is correct. Infant mortality; adult literacy
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Henderson Company manufactures electronics. The Calculator Division (an investment center) manufactures handheld calculators. The division can purchase the batteries used in the calculators from the Battery Division (another investment center) or from an outside vendor. The cost to purchase batteries from the outside vendor is $5. The transfer price to purchase from the Battery Division is $6. The Battery Division also sells to outside customers. The sales price is $6, and the variable cost is $3. The Battery Division has excess capacity.
Requird
a. Should the Calculator Division purchase from the Battery Division or the outside vendor?
b. If Henderson Company allows division managers to negotiate transfer prices, what is the maximum transfer price the manager of the Caiculator Division should consider?
Answer:
a
Explanation:
The a) Calculator Division should consider choosing the outside vendor rather than the battery division because it costs lower to acquire, and currently transfer price is not appropriate to use. b) On the basis of our computation and situation, the market price from the outside vendor will be used, which is worth $5.
What is the calculation?In this short exercise, we are expected to answer four requirements under the Henderson Company - a manufacturer of electronics. This will be focusing on the subject of Transfer prices.
First, let us understand what is a transfer price. As such, this is the price or value of a single unit of material that is traded between divisions within the same company.
Whenever a division requires materials for its operations, it can transact with other divisions to obtain the items at a lower price than the market price. Within the contribution margin of the goods, the price might be negotiated.
Furthermore, if the division is operating at capacity, it signifies that they are producing at their maximum capacity. This causes internal management disagreements regarding whether it is better to sell to customers or to employees. As a result, the minimum transfer price is typically larger than or equal to the selling price of the products. To start, we are to identify the formula for the contribution margin for the basis of the transfer price. Sales price per unit, less: variable cost, contribution margin per unit.
From the problem, the amounts are listed below:
Market Price (outside vendor) $5
Transfer Price (Battery Division) $6
Sales price $6
Variable Cost $3
To find our negotiable range for transfer price, we will compute the contribution margin of the battery division. Sales price per unit, less: variable cost, contribution margin per unit. This means that within the $3 difference the transfer price can be negotiated. In this requirement, we are asked where should the Calculator Division purchase the batteries they need for the calculators. From the problem, we had learned that the market price worth $5 is lower than the selling price of the battery division which amounts to $6. In conclusion, the Calculator Division should consider choosing the outside vendor rather than the battery division because it costs lower to acquire, and currently transfer price is not appropriate to use.
The second requirement is identifying the maximum transfer price the Calculator Division needs to consider. On the basis of our computation and situation, the market price from the outside vendor will be used, which is worth $5.
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Answer:
number 3 lang ung X 1 2 4 5 heart na
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[tex]\color{red}{\tt { HEART} \: \: }\color{black}{\tt{Lumahok \: sa \: panuntunan \: sa \: kalinisan.}}[/tex]
[tex]\color{red}{\tt { HEART} \: \: }\color{black}{\tt{Gumawa \: ng \: poster \: tungkol \: sa \: mabuting \: epekto \: ng \: kalikasan.}}[/tex]
[tex]\color{green}{\tt { WRONG} \: \: }\color{black}{\tt{Huwag \: Pansinin \: ang \: ordinansa \: o \: batas \: tungkol \: sa \: kalinisan.}}[/tex]
[tex]\color{red}{\tt { HEART} \: \: }\color{black}{\tt{Sundin \: ang \: batas \: sa \: pag-iwas \: o \: pagpigil \: sa \: polusyon.}}[/tex]
[tex]\color{red}{\tt { HEART} \: \: }\color{black}{\tt{Panatilihin \: ang \: kalinisan \: sa \: kapaligiran.}} \: [/tex]
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→XxKim02xXThis is weird what is ya favorite anime character
Answer:
naruto
Explanation:
He is my favourite anime character.........
At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $1,872,000,and direct labor costs, $480,000. At year-end, the company’s records show that actual overhead costs for the year are $1,369,300. Actual direct labor cost had been assigned to jobs as follows:
Movies completed and released $300,000
Movies still in production 54,000
Total actual direct labor cost $354,000
Required:
a. Determine the predetermined overhead rate for the year.
b. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.
Answer:
Part a.
$3.90 per direct labor cost
Part b.
Debit : Overheads $11,300
Credit : Cost of Sales $11,300
Explanation:
The predetermined overhead rate for the year.
predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activities
therefore,
Predetermined overhead rate = $1,872,000 ÷ $480,000
= $3.90 per direct labor cost
The adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.
Step 1 : Overheads Applied Calculation
Overheads Applied = Predetermined overhead rate x actual labor costs
therefore,
Overheads Applied = $3.90 x $354,000 = $1,380,600
Step 2 : Over or Under Application of Overheads
Actual Overheads = $1,369,300
and
Overheads Applied = $1,380,600
therefore,
Over-applied overheads = $1,380,600 - $1,369,300 = $11,300
Step 3 : Journal entry
Reduce the cost of sales figure by the amount of Over-applied overheads
Debit : Overheads $11,300
Credit : Cost of Sales $11,300
Also, although budgetary deficits are designed to shift the aggregate demand curve to the right, it also A) the demand for loanable funds in the financial sector of the economy. This could cause real B) rates to C) . The effect would be that D) spending by firms would fall, thereby offsetting (to a degree) the intended effect of policy. This phenomenon is known as the E) effect.
list of purpose & uses of assets
Answer:
Explanation:
Assets may be used to store wealth, create income, and reduce future expenses.
Assets are reported on a company's balance sheet and are bought or created to increase a firm's value or benefit the firm's operations. An asset can be thought of as something that, in the future, can generate cash flow, reduce expenses, or improve sales, regardless of whether it's manufacturing equipment or a patent.
Hope this helped!!
Explain why monopolies do exist?
Answer:
When one company exerts sole control over a resource that is necessary for the production of a specific product, the market may become a monopoly.
Explanation:
This is because you can control companies if you are the only place available for a resource for example water in dry contents
3
Hame and explain
of skills that should be possess by an entrepreneur
Answer:
1. Curiosity. Great entrepreneurs are tasked with identifying new problems, identifying potential niche opportunities, refactoring their existing business processes, and innovating. This necessitates a passion for various fields of study and business cases that are outside of one's comfort zone.
2. Time management. Prioritization, milestone definition, execution, and iteration are all critical. None of this would be possible without the proper project management and time allocation methodologies in place to complete the work.
3. Strategic thinking. Learning to break down a problem to its simplest components and identify growth opportunities. Inventive problem-solving and spotting the low-hanging fruit. Defining an MVP's scope and testing concepts in a short amount of time and on a tight budget.
Assume that the labor market for retail workers is generally unskilled. If a minimum wage is set in the labor market for retail workers and that this minimum wage is above the equilibrium wage in this particular labor market, then __________ . Select the correct answer below: there will be a shortage of retail workers in this labor market there will be a surplus of retail workers in this labor market. there will be a non-binding price floor there will be a non-effective minimum wage
Answer:
there will be a surplus of retail workers in this labor market.
Explanation:
In the attached diagram the scenario is illustrated.
When the minimum wage is above the equilibrium wage it means that the minimum wage is above what employees are willing to pay workers. So employees will be less wiling to pay this amount.
There will be a reduction in the number of available slots for workers.
On the other hand workers will receive higher wage than they expected but since the slots for work are now limited there will be a surplus of labour in the market
Laura is an investor and a limited partner in a limited partnership. Two years after she becomes a limited partner, Laura thinks that the general partners are not doing a very good job managing the affairs of the limited partnership and participates in the management of the limited partnership. While she is participating in management, a bank loans $1 million to the limited partnership, believing that Laura is a general partner. If the limited partnership defaults on the $1 million loan, which of the following holds well?
A. Laura has unlimited personal liability as a limited partner.
B. Laura is personally liable as the bank, in good faith, thought she is a general partner.
C. Laura's liability is restricted to the value of her capital investment in the partnership.
D. Laura is not personally liable as she is a limited partner on paper.
Answer
Option B. Laura is personally liable as the bank, in good faith, thought she is a general partner
Explanation:
Limited Partnership (LP)
This is Business entity that exists in line with state statutes that gives limited liability to some of its members who called limited partners.
RULPA
This is simply called Revised Uniform Limited Partnership Act. It is the model for Limited Partnership legislation in most states.
Limited Partner
This is a part or member of a limited partnership.it is that individual who is not involved in controlling the business and whose liability is limited to amount invested in the business.
General Partner
It is simply a member in a limited (or general) partnership who controls the business and has unlimited personal liability.
In the above scenario, Laura will be taken as a general partner and will be held personally accountable or liable for the loan, and also along with the general partners of the limited partnership.The rule of RULPA gives the right for a limited partner to be involved in the management of the partnership’s affairs and not losing the limited liability if the limited partner has been formally employed by the partnership to be an executive of the partnership.
Which of the following is a well written goal for developing a system?
O To institute a more efficient food preparation system
O To hire more housekeepers
To institute a two-week training program for the front desk employees to teach them how to use the new communication system
O To earn at least $5,000 in gift shop revenue more next month
a good written goal for developing a system is B
Portions of the financial statements for Myriad Products are provided below.
MYRIAD PRODUCTS COMPANY
Income Statement
For the Year Ended December 31, 2016
($ in millions)
Sales $ 620
Cost of goods sold (217)
Gross margin 403
Salaries expense $ 85
Depreciation expense 72
Patent amortization expense 5
Interest expense 12
Loss on sale of land 3 (177)
Income before taxes 226
Income tax expense (113)
Net Income $ 113
MYRIAD PRODUCTS COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2016 and 2015
($ in millions)
Year
2016 2015 Change
Cash $ 108 $ 104 $ 4
Accounts receivable 224 238 (14 )
Inventory 442 454 (12 )
Accounts payable 150 142 8
Salaries payable 82 90 (8)
Interest payable 31 24 7
Income taxes payable 21 14 7
Required:
Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the indirect method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.)
Answer:
MYRIAD PRODUCTS COMPANY
Cash flow from Operating Activities
($ in millions)
Net Income $ 113
Adjustment of non-cash items :
Depreciation expense $72
Patent amortization expense $5
Loss on sale of land $3
Adjustment to Changes in Working Capital :
Decrease in Accounts receivable $14
Decrease in Inventory $12
Increase in Accounts payable $8
Decrease in Salaries payable ($8)
Increase in Interest payable $7
Increase in Income taxes payable $7
Net Cash Provided by Operating Activities $219
Explanation:
The Indirect method reconciles the Net Income and Operating Cash flow by adjusting for non- cash items and changes in working capital during the year.
Violet Sales Corp, reports the year-end information from 2020 as follows: Sales (35,000 units) $280,000 Cost of goods sold (105,000) Gross margin $175,000 Operating expenses (155,000) Operating income $20,000 Violet is developing the 2020 budget. In 2020 the company would like to increase selling prices by 5.5%, and as a result expects a decrease in sales volume of 15%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted cost of goods sold for 2020
Answer:
COGS= $89,250
Explanation:
Giving the following information:
First, we need to calculate the unitary cost of goods sold:
Unitary COGS= 105,000 / 35,000= $3
Now, the new number of units sold:
Units sold= 35,000*0.85= 29,750
Finally, the COGS for 2020:
COGS= 29,750*3
COGS= $89,250
g Sales and Production Budgets Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 284 79 Desired inventory (units), June 30 327 69 Expected sales volume (units): Midwest Region 4,300 4,800 South Region 5,050 4,400 Unit sales price $95 $225 a. Prepare a sales budget.
Answer:
Sonic Inc.a. Sales Budget for the month of June:
Rumble Thunder Total
Midwest Region 4,300 4,800 9,100
South Region 5,050 4,400 9,450
Total units sold 9,350 9,200 18,550
Sales price $95 $225
Expected Sales Revenue $888,250 $2,070,000 $2,958,250
b. Production Budget for the month of June:
Rumble Thunder Total
Desired inventory (units), June 30 327 69 396
Total units sold 9,350 9,200 18,550
Total units available for sale 10,287 9,269 19,556
Estimated inventory (units), June 1 284 79 363
Units to be produced 10,003 9,190 19,193
Explanation:
a) Data and Calculations:
Rumble Thunder
Estimated inventory (units), June 1 284 79
Desired inventory (units), June 30 327 69
Expected sales volume (units):
Midwest Region 4,300 4,800
South Region 5,050 4,400
Unit sales price $95 $225
Renaissance Creations restores antique stained glass windows. All jobs generate some breakage or improper cuts. This scrap can be sold to stained glass hobbyists. Renaissance Creations expects to incur approximately 45,000 direct labor hours during 2013. The following estimates are made in setting the predetermined overhead rate for 2013:
One job that Renaissance Creations completed during 2013 was a stained glass window of the Pierce family crest that took 125 hours, and direct labor is invoiced at $20 per hour. Total direct material cost for the job was $890. Scrap that was generated from this job was sold for $93.
a. What was the predetermined overhead rate (set on the basis of direct labor hours) for 2013?
b. What was the cost of the Pierce stained glass window?
c. Prepare the journal entry to record the sales value of the scrap from the Pierce stained glass window.
d. Assume instead that only certain jobs generate scrap. What was the cost of the Pierce stained glass window?
Answer:
hello your question has some missing information attached below is the missing information
answer :
a) $7
b) $4265
c) attached below
d) $4192
Explanation:
a) determine the predetermined overhead rate
= Total estimated overhead / estimated direct labor hour
Total estimated overhead = $315,000
estimated direct labor hour = 45,000
hence predetermined overhead rate = 315,000 / 45,000 = $7
b) calculate the cost of the Pierce stained glass window
Direct material cost = $890
number of labor hours = 125
direct labor cost = $20 per hour
predetermined overhead rate = $7
∴cost of glass window = [ ( 890 + ( 125 * 20 ) + ( 125 * 7 ) ] = $4265
c) Journal entry used to record sell of scrap
Account name
cash $93
manufacture overhead $93
d) assuming only some jobs generate scrap
first we will calculate the overhead rate per hour
= ( $297000 + $25200) / 45,000 = $7.16
∴ Total cost of pierce stained glass window
= [ (direct material cost + number of labor hours ) + number of labor hours ( predetermined overhead rate ) ] - $93
= $4285 - $93 = $4192
On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 20 million, $5.00 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $16 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend. What is the par per share after the split
Answer:
a. No journal entry is required.
b. Par per share after the split = $2.50
Explanation:
a. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend.
No journal entry is required for this because the total value of the shares has not changed due to 2-for-1 stock split.
This is because the 2-for-1 stock split has only increased the number of shares outstanding by 2, but at the same time reduces the par value of the share by half making the total value of the shares to remain the same.
b. What is the par per share after the split.
As explained in a above, the effect of 2-for-1 stock split is to reduce the par value of the share by half.
Therefore, the par per share after the split can be calculated as follows:
Par per share after the split = Par per share before the split / 2 = $5 / 2 = $2.50
In what way are mutual funds similar to common stocks
A) Investors get to vote a major decision for all really good investment
B) Mutual funds offer your risk-free investment opportunity
C) investing in a mutual fund gives the investor a Proportionate ownership in that fun
Answer:
Option C defines the similarity between the mutual funds and common stocks
Explanation:
Common stocks is just like buying shares of a company and having certain % of share in that fund.
Like wise mutual funds are too equivalent to buying shares or stocks but not individually but with other people having proportionate sharing governed by the amount invested by each individual.
Hence, option C is correct
Answer:
Investing in a mutual fund gives the investor a proportionate ownership in that fund.
Explanation:
I got it right on the test nun to worry about.