Plum Corporation began the month of May with $1,400,000 of current assets, a current ratio of 1.90:1, and an acid-test ratio of 1.70:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).
May 2 Purchased $75,000 of merchandise inventory on credit.
8 Sold merchandise inventory that cost $55,000 for $150,000 cash.
10 Collected $26,000 cash on an account receivable.
15 Paid $29,500 cash to settle an account payable.
17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.
22 Declared a $1 per share cash dividend on its 69,000 shares of outstanding common stock.
26 Paid the dividend declared on May 22.
27 Borrowed $120,000 cash by giving the bank a 30-day, 10% note.
28 Borrowed $135,000 cash by signing a long-term secured note.
29 Used the $255,000 cash proceeds from the notes to buy new machinery.
Required
Prepare a table showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital, after each transaction. Round ratios to two decimals.
Answers
Answer:
Plum Corporation
(1) current ratio = Current assets/current liabilities
(2) acid-test ratio = (Current asset -Inventory)/Current liabilities
(3) working capital = Current assets minus Current liabilities
(4) acid-test assets = quick assets
May 2 Purchased $75,000 of merchandise inventory on credit.
Current Assets: $1,400,000 + $75,000 = $1,475,000
Current Liabilities: $737,000 + $75,000 = $812,000
Inventory: $147,000 +$75,000 = $222,000
(1) current ratio = $1,475,000/$812,000
= 1.82:1
(2) acid-test ratio = $1,475,000 - $222,000/$812,000
= 1.54:1
(3) working capital = Current Assets - Current Liabilities
= $1,475,000 - $812,000
= $663,000
May 8 Sold merchandise inventory that cost $55,000 for $150,000 cash.
Current Assets: $1,475,000 -55,000 + 150,000 = $1,570,000
Current Liabilities: $812,000
Inventory: $222,000 - 55,000 = $167,000
Quick Assets = $1,570,000 - 167,000 = $1,403,000
(1) current ratio = $1,570,000/$812,000
= 1.93
(2) acid-test ratio = $1,403,000/$812,000
= 1.73
(3) working capital = $1,570,000 - $812,000
= $758,000
May 10 Collected $26,000 cash on an account receivable.
Current Assets: $1,570,000 ($26,000 - $26,000) = $1,570,000
Current Liabilities: $812,000
Inventory: 167,000
Quick Assets = $1,570,000 - 167,000 = $1,403,000
(1) current ratio = $1,570,000/$812,000
= 1.93
(2) acid-test ratio = $1,403,000/$812,000
= 1.73
(3) working capital = $1,570,000 - $812,000
= $758,000
May 15 Paid $29,500 cash to settle an account payable.
Current Assets: $1,570,000 - $29,500 = $1,540,500
Current Liabilities: $812,000 - $29,500 = $782,500
Inventory: 167,000
Quick Assets = $1,540,500 - 167,000 = $1,373,500
(1) current ratio = $1,540,500/$782,500
= 1.97:1
(2) acid-test ratio = $1,373,500/$782,500
= 1.76:1
(3) working capital = $1,540,500 - $782,500
= $758,000
May 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.
Current Assets: $1,540,500 - $5,000 = $1,535,500
Current Liabilities: $782,500
Inventory: 167,000
Quick Assets = $1,535,500 - 167,000 = $1,368,500
(1) current ratio = $1,535,500/$782,500
= 1.96:1
(2) acid-test ratio = $1,535,500/$782,500
= $1.96:1
(3) working capital = $1,535,500 - $782,500
=$753,000
May 22 Declared a $1 per share cash dividend on its 69,000 shares of outstanding common stock.
Current Assets: $1,535,500
Current Liabilities: $782,500
Inventory: 167,000
Quick Assets = $1,535,500 - 167,000 = $1,368,500
(1) current ratio = $1,535,500/$782,500
= 1.96:1
(2) acid-test ratio = $1,535,500/$782,500
= $1.96:1
(3) working capital = $1,535,500 - $782,500
=$753,000
May 26 Paid the dividend declared on May 22.
Current Assets: $1,535,500 -$69,000 = $1,466,500
Current Liabilities: $782,500
Inventory: 167,000
Quick Assets = $1,466,500 - 167,000 = $1,299,500
(1) current ratio = $1,466,500/$782,500
= 1.87:1
(2) acid-test ratio = $1,299,500/$782,500
= 1.66:1
(3) working capital = $1,466,500 - $782,500
= $684,000
May 27 Borrowed $120,000 cash by giving the bank a 30-day, 10% note.
Current Assets: $1,466,500 + $120,000 = $1,586,500
Current Liabilities: $782,500 + $120,000 = $902,500
Inventory: 167,000
Quick Assets = $1,586,500 - 167,000 = $1,419,500
(1) current ratio = $1,586,500/$902,500
= 1.76
(2) acid-test ratio = $1,419,500/$902,500
= 1.57
(3) working capital = $1,586,500 - $902,500
= $684,000
May 28 Borrowed $135,000 cash by signing a long-term secured note.
Current Assets: $1,586,500 + $135,000= $1,721,500
Current Liabilities: $902,500
Inventory: 167,000
Quick Assets = $1,721,500 - 167,000 = $1,554,500
(1) current ratio = $1,721,500/$902,500
= 1.91:1
(2) acid-test ratio = $1,554,500/$902,500
= 1.72
(3) working capital = $1,721,500 - $902,500
= $819,000
May 29 Used the $255,000 cash proceeds from the notes to buy new machinery.
Current Assets: $1,721,500 - $255,000 = $1,466,500
Current Liabilities: $902,500
Inventory: 167,000
Quick Assets = $1,466,500 - 167,000 = $1,299,500
(1) current ratio = $1,466,500/$902,500
= 1.62:1
(2) acid-test ratio = $1,299,500/$902,500
= 1.44:1
(3) working capital = $1,466,500 - $902,500
= $564,000
Explanation:
a) Data and Calculations:
May 1, Current Assets = $1,400,000
Ratio of current assets to current liabilities = 1.90:1
Acid -test ratio = 1.70:1
Therefore, current liabilities = $1,400,000/1.9 = $737,000
Current Assets minus Inventory/$737,000 = 1.7
Therefore, current assets minus inventory = $737,000 * 1.7 = 1,253,000
Inventory = Current Assets - (Current assets -inventory)
= $1,400,000 - $1,253,000
= $147,000
Full Question attached
Answer and Explanation:
Find attached
Related Questions
Answer the following questions about prepaid expenses:
a. On 1, Tree Service prepaid for six months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at adjusts the accounts only at 31, the end of its fiscal year.
b. On 1, Tree Service paid for supplies. At 31, has of supplies on hand. Make the required journal entry at 31. Then post all amounts to the accounts and show their balances at 31. Assume no beginning balance in supplies.
c. On 1, Tree Service prepaid for six months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at adjusts the accounts only at 31, the end of its fiscal year. Prepare the adjusting journal entry to record the rent expense at 31.
Answers
Answer:
the numbers are missing, so I looked for a similar question:
a. On 1, Tree Service prepaid $7,200 for six months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at adjusts the accounts only at 31, the end of its fiscal year.
Dr Rent expense 1,200 (= $7,200 / 6)
Cr Prepaid rent 1,200
Balances:
Prepaid rent 6,000
Rent expense 1,200
b. On 1, Tree Service paid $1,050 for supplies. At 31, has $400 of supplies on hand. Make the required journal entry at 31. Then post all amounts to the accounts and show their balances at 31. Assume no beginning balance in supplies.
Dr Supplies expense 650 (= $1,050 - $400)
Cr Supplies 650
Balances:
Supplies 400
Supplies expense 650
c. On 1, Tree Service prepaid for six months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at adjusts the accounts only at 31, the end of its fiscal year. Prepare the adjusting journal entry to record the rent expense at 31.
SAME AS QUESTION A
The following is a condensed version of the comparative balance sheets for Tamarisk Corporation for the last two years at December 31.
2020 2019
Cash $ 354,000 $ 156,000
Accounts receivable 360,000 370,000
Investments 104,000 148,000
Equipment 596,000 480,000
Accumulated Depreciation-Equipment (212,000 ) (178,000 )
Current liabilities 268,000 302,000
Common stock 320,000 320,000
Retained earnings 614,000 354,000
Additional information:
Investments were sold at a loss of $20,000; no equipment was sold; cash dividends paid were $60,000; and net income was $320,000.
Prepare a statement of cash flows for 2020 for Swifty Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answers
Answer:
Cash Flow Statement
Cash flow from Operating Activities
Net Income $296,000
Adjustments
Depreciation $34,000
(212,000- 178,000)
Loss on sale of Investments $20,000
Decrease in Accounts Receivable $10,000
(370,000 - 360,000)
Decrease in Current Liabilities -$34,000
(268,000 - 302,000)
Total Adjustments $30,000
Cash from operating activities $326,000
Cash flow from Investing Activities
Purchase of Equipment -$116,000
(480,000 - 596,000)
Sale of Investment $24,000
(148,000 - 104,000 -20,000)
Cash used in investing activities -$92,000
Cash flow from Financing Activities
Issue of shares $-
Dividend Paid -$60,000
Cash from financing activities -$60,000
Net Increase in cash $ 174,000
Opening Balance of Cash $156,000
Closing Balance of Cash $330,000
Blaine Air Transport Service, Inc., providing air delivery service for businesses, has been in operation for three years. The following transactions occurred in February:
February 1 Paid $275 for rent of hangar space in February.
February 2 Purchased fuel costing $490 on account for the next flight to Dallas.
February 4 Received customer payment of $820 to ship several items to Philadelphia next month.
February 7 Flew cargo from Denver to Dallas; the customer paid $910 for the air transport.
February 10 Paid $175 for an advertisement in the local paper to run on February 19.
February 14 Paid pilot $2,300 in wages for flying in January (recorded as expense in January).
February 18 Flew cargo for two customers from Dallas to Albuquerque for $3,800; one customer paid $1,600 cash and the other asked to be billed.
February 25 Purchased on account $2,550 in spare parts for the planes.
February 27 Declared a $200 cash dividend to be paid in March.
Required:
Prepare journal entries for each transaction. Be sure to categorize each account as an asset (A), liability (L). stockholders' equity (SE). revenue (R). or expense (E).
Answers
Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
February 1 (Paid $275 for rent of hangar space in February)
Rent (Expense) Dr $275
Cash (Asset) Cr $275
February 2 (Purchased fuel costing $490 on account for the next flight to Dallas.)
Fuel (Expense) Dr $490
Accountt Payable (Liability) Cr $490
February 4 (Received customer payment of $820 to ship several items to Philadelphia next month.)
Cash (Asset) Dr $820
Shipment (R) Cr $820
February 7 (Flew cargo from Denver to Dallas; the customer paid $910 for the air transport)
Cash (A) Dr $910
Ticket (R) Cr $910
February 10 (Paid $175 for an advertisement in the local paper to run on February 19.)
Advertisement (E) Dr $175
Cash (A) Cr $175
February 14 (Paid pilot $2,300 in wages for flying in January (recorded as an expense in January))
Wages payable (L) Dr 2300
Cash (A) Cr 2300
February 18 Flew cargo for two customers from Dallas to Albuquerque for $3,800; one customer paid $1,600 cash and the other asked to be billed.
Cash (A) Dr 1600
Account Receivable (A) Dr 2200
Ticket (R) Cr 3800
February 25 Purchased on account of $2,550 in spare parts for the planes.
Spares (E) Dr 2550
Account Payable (L) Cr 2550
February 27 (Declared a $200 cash dividend to be paid in March.)
Retained Earnings (SE) Dr 200
Dividend Payable (L) Cr 200
Antwaun wants to purchase new photography equipment. He sees an advertisement on a store's website for a 35% sale on 85mm lenses this weekend . If the original price of the lens he wanted is $599, what is the new price of the lens once it goes on sale ?
Answers
Answer:
$389.35
Explanation:
The original price is $599,
The advertised discount is 35%.
Price after discount will be
=$599- (35% of $599)
=$599 - (35/100 x $599)
=$599 - $209.65
=$389.35
Assume that you have a $100,000 account and you are willing to risk 5% of your capital on an idea. You determine that the there is $4 of risk in your trade. What should be your maximum position size
Answers
Answer:
$1,250 Shares
Explanation:
Calculation for What should be your maximum position size
First step is to calculate the 5% risk of your capital
Capital risk =5%*$100,000
Capital risk=$5,000
Last step is to calculate What should be your maximum position size
Maximum position size=$5,000/$4
Maximum position size=$1,250 Shares
Therefore What should be your maximum position size is $1,250 Shares
a. Fethe's Funny Hats is considering selling trademarked, orange-haired curly wigs for University of Tennessee football games. The purchase cost for a 2-year franchise to sell the wigs is $20,000. If demand is good (40% probability), then the net cash flows will be $27,000 per year for 2 years. If demand is bad (60% probability), then the net cash flows will be $6,000 per year for 2 years. Fethe's cost of capital is 13%. What is the expected NPV of the project?
b. If Fethe makes the investment today, then it will have the option to renew the franchise fee for 2 more years at the end of Year 2 for an additional payment of $20,000. In this case, the cash flows that occurred in Years 1 and 2 will be repeated (so if demand was good in Years 1 and 2, it will continue to be good in Years 3 and 4). Write out the decision tree. Note: The franchise fee payment at the end of Year 2 is known, so it should be discounted at the risk-free rate, which is 4%. Use decision-tree analysis to calculate the expected NPV.
Answers
Answer:
A) initial outlay = $20,000
expected cash flows = (40% x $27,000) + (60% x $6,000) = $14,400
NPV = -$20,000 + $14,400/1.13 + $14,400/1.13² = $4,020.68
B) Fethe acquires franchise $20,000
things go bad, NPV = -$20,000 + $6,000/1.13 + $6,000/1.13² = -$9,991.39. The project is abandoned after the first 2 years.things go well, NPV = -$20,000 + $27,000/1.13 + $27,000/1.13² = $25,038.77. The franchise is renewed for 2 more years.⇒ since the project continues, the present value of the cash flows are:
year 0 = -$20,000
year 1 = $27,000/1.13 = $23,893.81
year 2 = $27,000/1.13² - $20,000/1.04² = $5,482.03
year 3 = $27,000/1.13³ = $18,712.35
year 4 = $27,000/1.13⁴ = $16,559.61
NPV = $44,647.80
a. Using the information below, and assuming that you want to maintain your purchasing power from 2011, what nominal wage should you demand in each of the given years? Instructions: Round your answers to 2 decimal places. CPI Values and Nominal Wages YearCPINominal Wage (dollars)2011211.7$78,5202012213.5370902013223.82014221.1 b. Assume that your annual wage in 2014 was $82,920. This represents
Answers
Answer:
a)
Year CPI Nominal Wage (dollars)
2011 211.7 $78,520
2012 213.5 = (213.5/211.7) x $78,520 = $79,187.62
2013 223.8 = (223.8/211.7) x $78,520 = $83,007.92
2014 221.1 = (221.1/211.7) x $78,520 = $82,006.48
b) if you annual wage in 2014 was $82,920, it would be equivalent to (211.7/221.1) x $82,920 = $79,394.68 in 2011.
The CPI can be used to calculate equivalent dollars and works both ways, to determine past or future equivalencies.
At the end of the current year, Leer Company reported total liabilities of $315,000 and total equity of $115,000. The company's debt ratio on the last year-end was:
Answers
Answer:
73.26%
Explanation:
First, we need to determine the total assets.
Total assets = Total liabilities + equity
= $315,000 + $115,000
= $430,000
Debt ratio = Total liabilities / Total assets
= 315,000 / 430,000
= 73.26%
Therefore, the company's debt ratio on the last year end is 73.26%
A seller uses a perpetual inventory system, and on April 4, it sells $5,000 in merchandise (its cost is $2,400) to a customer on credit terms of 3/10, n/30. Complete the two journal entries to record the sales transaction by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. The first journal entry is to record the revenue part of the transaction and the second journal entry is to record the cost part.
Date Account Title Debit Credit
April 4 selectMerchandise InventoryAccounts ReceivableCashCost of Goods SoldSales select2,4002,5002,6005,000 select2,4002,5002,6005,000
selectMerchandise InventoryAccounts ReceivableCashCost of Goods SoldSales select2,4002,5002,6005,000 select2,4002,5002,6005,000
selectMerchandise InventoryAccounts ReceivableCashCost of Goods SoldSales select2,4002,5002,6005,000 select2,4002,5002,6005,000
selectMerchandise InventoryAccounts ReceivableCashCost of Goods SoldSales select2,4002,5002,6005,000 select2,4002,5002,6005,000
Answers
Answer:
1. Dr Accounts Receivable $5,000
Cr Sales for $5,000
2. Dr Cost of Goods Sold for $2,400
Cr Merchandise Inventory for $2,400
Explanation:
1.,Preparation of the journal entry to record the revenue part of the transaction
Based on the information given we were told that on April they sells the amount of $5,000 in merchandise which means that the Journal entry will be :
Dr Accounts Receivable for $5,000
Cr Sales for $5,000
2. Preparation of Journal entry to record the cost part
Based on the information given we were told that the its cost the amount of $2,400 which means that the Journal entry will be :
Dr Cost of Goods Sold for $2,400
Cr Merchandise Inventory for $2,400
true or false ,The first step in composing a message is to identify its purpose
Answers
Present and future value tables of $1 at 3% are presented below:
N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1
1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000
2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087
3 1.09273 0.91514 3.0909 2.82861 3.1836 2.91347
4 1.12551 0.88849 4.1836 3.71710 4.3091 3.82861
5 1.15927 0.86261 5.3091 4.57971 5.4684 4.71710
6 1.19405 0.83748 6.4684 5.41719 6.6625 5.57971
7 1.22987 0.81309 7.6625 6.23028 7.8923 6.41719
8 1.26677 0.78941 8.8923 7.01969 9.1591 7.23028
9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969
10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611
11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020
12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262
13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400
14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496
15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607
16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794
You want to invest $20,000 today to accumulate $22,500 to buy a car. If you can invest at an interest rate of 3% compounded annually, how many years will it take to accumulate the required amount?
Answers
Answer:
binder: Liquid substance used in paint and other media to bind particles of pigment together.
fresco: Where pigments are mixed with water and then applied to a plaster support, usually a wall or a ceiling.
gouache: A type of watercolor in which white pigment is added creating a duller effect, and a tinted feel.
oil: Painting medium where pigments are binded using oils, usually linseed oil.
painting media: Material made of three components; pigment,vehicle, and binder
pigment: Ground up solids that contain color the color in paint.
tempera: A water based painting medium made with egg yolk, often used to paint frescos and panels.
vehicle: Adjusts the viscosity of the paint.
watercolor: Pigment that is mixed with arabic and gum, and mostly water before it is applied to the paper.
Painting Media
Direct Instruction Active
Highlighter
CyanMagentaGreeenClear Highlights
Headphones
Explanation:
Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years at the university, Sandy accumulated $10,000 in student loans. She asks for your help in determining the amount of the quarterly loan payment. She tells you that the loan must be paid back in five years and that the annual interest rate is 8%. Payments begin in three months.
Required:
Determine Sandy's quarterly loan payment.
Answers
Answer: $611.57 or $612 rounded to nearest dollar.
Explanation:
She would have to make a constant payment per quarter which makes it an annuity.
The $10,000 is the present value of the annuity.
The quarters remaining are = 5 years * 4 = 20 quarters
Quarterly interest = 8%/4 = 2%
10,000 = Annuity * Present Value of Annuity factor, 20 periods, 2%
10,000 = Annuity * 16.3514
Annuity = 10,000/16.3514
= $611.57
Sandhill Company expects to have a cash balance of $61,550 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017.
1. Collections from customers: January $86,550, February $161,550.
2. Payments to suppliers: January $55,550, February $90,550.
3. Wages: January $31,490, February $41,490. Wages are paid in the month they are incurred.
4. Administrative expenses: January $22,490, February $25,490. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.
5. Selling expenses: January $16,490, February $21,490. These costs are exclusive of depreciation. They are paid as incurred.
6. Sales of short-term investments in January are expected to realize $13,490 in cash. Sandhill Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $35,550.
Required:
Prepare a cash budget for January and February.
Answers
Answer:
January February
Beginning Cash Balance 61,550 36,570
Add: Receipts
Collections from Customers 86,550 161,550
Sale of Marketable Securities 13,490 0
Total Receipts 100,040 161,550
Total Available Cash 161,590 198,120
Less: Disbursements
Payments to Suppliers 55,550 90,550
Wages 31,490 41,490
Admin Expenses 21,490 24,490
Selling Expenses 16,490 21,490
Total Disbursements 125,020 178,020
Cash Balance 36,570 20,100
Financing
Add: Borrowings 0 15,450
Less: Repayments 0 0
Ending Cash Balance 36,570 35,550
Admin Expenses are independent of Depreciation which is not a cash expense.
The company wants to maintain a minimum monthly cash balance of $35,550 so in February they will have to borrow;
= 35,550 - 20,100
= $15,450
QUESTION 1
The prices for all furniture sold at American Furniture Warehouse end in $9.99, such as $599.99, $899.99, etc. American Furniture Warehouse uses
O a. odd-even pricing.
b.price lining
c. bundle pricing.
d. product-line pricing.
Oe. dynamic pricing.
Answers
Estella Osage publishes an online travel magazine. In need ofcash, the business applies for a loan with National Bank. The bank requires borrowers to submit financial statements. With little knowledge of accounting, Estella Osage, the owner, does not know how to proceed.The explanations for how to prepare each statementRequirements:1. What are the four financial statements that the business will need to prepare?2. Is there a specific order in which the financial statements must be prepared?3. Explain how to prepare each statement.Requirements 1, 2, and 3. What are the four financial statements that the business will need to prepare? Is there a specific order in which the financial statements must beprepared? Explain how to prepare each statementIn the first column, select the four financial statements that the business will need to prepare. In the second column, select the number corresponding with the order the financial statements must be prepared. If there is no specific order, select "n/a" for each statement. In the third column, select the letter grouping that corresponds with the proper explanations for how to prepare each statement.1. Financial statement 2. Order 3. How to preparea. Each asset account is listed separately and then totaled. Cash is always listed first.b. Each dollar amount is calculated by evaluating the cash column on the transaction detail.c. Each expense account is listed separately from largest to smallest and then subtotaled if necessary.d. Financing activities include cash contributions by the owner and owner withdrawals of cash.e. Investing activities include the purchase and sale of land and equipment.f. Liabilities are listed separately and then totaled. Liabilities that are to be paid first are listed first.g. Net income is calculated as total revenues minus total expenses.h. Operating activities involve cash receipts for services provided and cash payments for expenses paid.i. The beginning capital is listed first and will always be the ending capital from the previous time period.j. The ending cash balance must match the cash balance on the balance sheet.k. The header includes the name of the business, the title of thestatement, and the date, listed as a period of time. l. The header includes the name of the business, the title of thestatement, and the date, listed as a specific date.m. The owner's contribution and net income are added to the beginning capital.n. The owner's equity is taken directly from the statement ofowner's equity.o. The owner's withdrawals are subtracted from capital. If there had been a netloss, this would also be subtracted.p. The revenue accounts are always listed first and then subtotaled if necessary.q. This statement must always balance. Assets = Liabilities + Equity
Answers
Answer:
1. The four financial statements are;
Income StatementStockholder's Equity statementBalance SheetStatement of Cashflows2. The specific order is done as follows because information from the preceding statement will be needed for the next one.
Income Statement ⇒ Stockholder's Equity statement ⇒ Balance Sheet ⇒ Statement of Cashflows
3. Income Statement
c. Each expense account is listed separately from largest to smallest and then subtotaled if necessary.g. Net income is calculated as total revenues minus total expenses.k. The header includes the name of the business, the title of thestatement, and the date, listed as a period of time.p. The revenue accounts are always listed first and then subtotaled if necessary.Stockholder's Equity
i. The beginning capital is listed first and will always be the ending capital from the previous time periodk. The header includes the name of the business, the title of thestatement, and the date, listed as a period of time.m. The owner's contribution and net income are added to the beginning capital.o. The owner's withdrawals are subtracted from capital. If there had been a netloss, this would also be subtracted.Balance Sheet
a. Each asset account is listed separately and then totaled. Cash is always listed first.f. Liabilities are listed separately and then totaled. Liabilities that are to be paid first are listed first.l. The header includes the name of the business, the title of thestatement, and the date, listed as a specific daten. The owner's equity is taken directly from the statement ofowner's equity.q. This statement must always balance. Assets = Liabilities + EquityStatement of Cashflows
b. Each dollar amount is calculated by evaluating the cash column on the transaction detail.d. Financing activities include cash contributions by the owner and owner withdrawals of cash. e. Investing activities include the purchase and sale of land and equipment.h. Operating activities involve cash receipts for services provided and cash payments for expenses paid.j. The ending cash balance must match the cash balance on the balance sheet.k. The header includes the name of the business, the title of thestatement, and the date, listed as a period of time.A relocation of a short stretch of rural highway feeding into Route 390 northwest of Dallas is to be made to accommodate new growth. The existing road is now unsafe, and improving it is not an alternative. Alternate new route locations are designated as East and West. The initial investment by government highway agencies will be $3, 950,000 for East and $5, 500,000 for West. Annual highway maintenance costs will be $120,000 for East and 590,000 for the shorter location West. Relevant annual road user costs, considering vehicle operation, time end route, fuel, safety, mileage, and so on, are estimated as $880,000 for East and only $690,000 for West. Assume a 20 year service life and i = 7 %. C
1. What is the present worth of the benefits and costs of route West over route East? PW benefits of route West over route East: $ PW costs of route West over route East: $ Carry all interim calculations to 5 decimal places and then round your Final answer to the nearest dollar. The tolerance is plusminus 50. Using incremental D/C ratio analysis, which alternative should be selected?
2. Compute the appropriate B/C ratio(s) and decide whether East or West should be constructed.
Answers
Full question attached
Answer and Explanation:
Please find attached
Given the following information about a fully amortizing loan, calculate the lender’s yield (rounded to the nearest tenth of a percent): loan amount: $166,950; term: 30 years; interest rate: 8%; monthly payment: $1,225.00; discount points: 2.
Answers
Answer:
c. 8.5%
Explanation:
Note: The following is the missing part. Other Closing Expenses: $3,611. A. 7.7% , B. 8.2%, C. 8.5%, D. 9.1%
Loan = $166,950
Rate = 8%
Life = 30 yrs
Period = 360
Installment = -1,225
Particulars Amount
Loan $166,950
Less: Discount points $3339
Less: Closing costs $3611
Net Borrowing $160,000
Now, we find the Effective borrowing Rate with the aid of MS Excel
Effective borrowing Rate = Rate(Nper, PMT, PV)
Effective borrowing Rate = Rate(360, -1225, 160000)
Effective borrowing Rate = 0.007044637(Monthly)
Annual Effective rate = 0.007044637 * 12
Annual Effective rate = 0.084535644
Annual Effective rate = 8.4535644%
Annual Effective rate = 8.5%
A lender is a person, a private or government institution, or a major bank that lends money to a person or a company with the anticipation of reimbursement. Repayment of every payment or cost will be included in the repayment.
The correct answer is c. 8.5%
The given information is:
Loan = $166,950
Rate = 8%
Life = 30 yrs
Period = 360
Installment = -1,225
Particulars Amount
Loan $166,950
Less: Discount points $3339
Less: Closing costs $3611
Net Borrowing $160,000
Calculation of the Effective borrowing Rate
Effective borrowing Rate = Rate(Nper, PMT, PV)
Effective borrowing Rate = Rate(360, -1225, 160000)
Effective borrowing Rate = 0.007044637(Monthly)
Annual Effective rate = [tex]0.007044637 \times 12[/tex]
Annual Effective rate = 0.084535644
Annual Effective rate = 8.4535644%
Annual Effective rate = 8.5%
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Yancey Productions is a film studio that uses a job-order costing system. The company’s direct materials consist of items such as costumes and props. Its direct labor includes each film’s actors, directors, and extras. The company’s overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars.At the beginning of the year, Yancey made the following estimates:Direct labor-dollars to support all productions $ 8,260,000Fixed overhead cost $ 4,956,000Variable overhead cost per direct labor-dollar $ 0.17Required:1. Compute the predetermined overhead rate. (I found the answer: .77 per DL$)2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:Direct materials $ 1,386,000Direct labor cost $ 2,478,000Compute the total job cost for this particular film.Direct Materials: $1,386,000Direct Labor: $2,478,000
Answers
Answer and Explanation:
The computation is shown below:
Predetermined overhead rate is
= Variable overhead cost per direct labor hours + Fixed overhead cost ÷ Direct labor-dollars
= $0.17 + $4,956,000 ÷ 8,260,000
= $0.17 + $0.6
= $0.77
Now the total cost is
= Direct material cost + direct labor cost + manufacturing cost
= $1,386,000 + $2,478,000 + ($2,478,000 × $0.77)
= $5,772,060
(D)
Life membership fees received by a club is
A. Revenue receipt
(B)
(C) Both (A) and (B)
(D)
Capital receipt
None of these
Answers
Answer:
(D) Capital receipt
Explanation:
The life membership fee is a one-time lump sum amount paid by a new member. It gives a member access to the club facilities for the rest of their lives. Life membership is treated as a capital receipt and added to the capital fund. It appears on the liabilities side in the balance sheet.
Life membership is not treated as income for a particular year because the one-time payments permit a member lifetime access to the club services.
for countries the term specialization refers to
Answers
Answer:
we need more info
Explanation:
there's only those words nothing else
For each of the following pairs of goods, state whether the cross-price elasticity is likely positive, negative, or zero. Explain your answers.
a. Hulu and Netflix.
Close to zero. While they are substitutes they are not close substitutes.
Negative. They are complements.
Positive. They are close substitutes.
b. Tortilla chips and salsa.
Close to zero. While they are substitutes they are not close substitutes.
Negative. They are complements.
Positive. They are close substitutes.
c. Movie and popcorn.
Positive. They are close substitutes.
Close to zero. While they are substitutes they are not close substitutes.
Negative. They are complements.
d. Running shoes and high heels.
Negative. They are complements.
Positive. They are close substitutes.
Close to zero. While they are substitutes they are not close substitutes.
Answers
Answer:
a. Hulu and Netflix.
Positive. They are close substitutes
Hulu and Netflix both provides television shows, so a consumer can choose between them. They are good substitutes
b. Tortilla chips and salsa.
Negative. They are complements.
Tortilla chips are consumed with salsa sauce. So a demand for salsa increases so does demand for tortilla chips.
c. Movie and popcorn.
Negative. They are complements.
The more people watch movies the more they will want to buy popcorn.
d. Running shoes and high heels
Close to zero. While they are substitutes they are not close substitutes.
Each has its own time of use. Consumers by them independently.
Explanation:
Cross price elasticity is a measure of the quantity demanded of one good to changes in price of another good.
So when a good's demand reduces with increase in price of another it is negative cross price elasticity. This is common with complements.
When quantity demanded of a good increases with increase in price of another, they are substitutes.
However when there is little effect on the quantity demanded with increase in price of the other good they are unrelated
When an employee has perfect attendance for the month, he or she is given a $25 bonus. This would be an example of ________.
Answers
Answer:
An incentive
Explanation:
Incentive is simply said to be an action, belief and others that is made to alter or intended to change the behavior, response or workload of another person. Incentives seek to to get people to do something, do their best or even not do something.
Incentives are mostly of monetary andNon monetary Incentives, social insult monetary Incentive has money as incentive in all task given.
Unemployment Type Rate (Percent) Frictional 3.2 Cyclical 0.0 Structural 1.1 Total unemployment 4.3 True or False: This economy is not currently at its natural rate of unemployment. gs
Answers
Answer: False
Explanation:
The economy is at its Natural rate of Unemployment when Total Unemployment is the result of only Frictional and structural unemployment because Cyclical Unemployment is as a result of the Economic cycle and so is not counted as part of the natural rate.
Here;
Frictional unemployment (3.2) + Structural Unemployment (1.1) = Total Unemployment (4.3)
This economy is at its Natural rate of unemployment.
Your uncle Abdallah is celebrating his 33th birthday today and wants to start saving for his retirement at the age of 63. He wants to be able to withdraw AED 100,000 from his saving account on each birthday for 20 years following his retirement. The first withdraw will be on his 64th birthday. Your uncle intends to invest his money in a local bank in Abu Dhabi that offers 7% interest rate per year. He wants to make equal payments on each birthday into the account established in the local bank for his retirement fund.
1. If your uncle starts making these deposits on his 33th birthday and continues to make deposits until he is 63, what amount must he deposit annually to be able to make the desired withdrawals at retirement?
2. If your uncle has just inherited a large sum of money, so instead of making equal payments, he has decided to pay one lump sum payment on his 33th birthday to cover his retirement needs. What amount does he have to deposit?
3. If your uncle’s employer informs your uncle that he will contribute AED 1,000 to your uncle account every year. Also, if your uncle expects AED100,000 from another investment on his 53th birthday, which he will also put into the retirement account. What amount must he deposit annually now to be able to make the desired withdrawals at retirement.
Answers
Answer:
we can use the present value of an annuity formula to determine how much money your uncle will need when he retires at 63:
PV = annual distribution x annuity factor
annual distribution = $100,000PV annuity factor, 7%, 20 periods = 10.594PV = $100,000 x 10.594 = $1,059,400
1) the present value of your uncle's retirement account at 63 will become the future value of his contributions, but this time we need to use the future value of an annuity due. He will make 31 deposits in total starting at age 33 and ending at age 63:
$1,059,400 = annual contribution x 102.07304 (FV annuity due factor, 7%, 31 periods)
annual contribution = $1,059,400 / 102.07304 = $10,359.25
2) we should now use the present value formula:
PV = FV / (1 + i)ⁿ
PV = $1,059,400 / (1 + 0.7)³⁰ = $138,907.59
3) the future value of your uncle's employer contributions = $1,000 x 102.07304 = $102,073.04
his $100,000 investment will be worth = $100,000 x (1 + 0.07)¹⁰ = $196,715.14
that means that your uncle still needs to save $1,059,400 - $102,073.04 - $196,715.14 = $760,611.46
his annual contribution will be:
annual contribution = $760,611.46 / 102.07304 = $7,451.64
The mean value of land and buildings per acre from a sample of farms is $1400, with a standard deviation of $200. The data set has a bell-shaped distribution. Assume the number of farms in the sample is 74.
(a) Use the empirical rule to estimate the number of farms whose land and building values per acre are between $1200 and $1600.
(b) If 29 additional farms were sampled, about how many of these additional farms would you expect to have land and building values between $1200 per acre and $1600 per acre?
Answers
Answer:
The answer is below
Explanation:
The Empirical Rule (or 3 sigma rule) states that for a normal distribution (bell shaped distribution) 68% of the data falls within one standard deviation (μ ± σ), 95% percent within two standard deviations (μ ± 2σ), and 99.7% within three standard deviations from the mean (μ ± 3σ).
Given that the mean (μ) = $1400, standard deviation (σ) = $200
a) The percentage of data within one standard deviation = μ ± σ = (1400 ± 200) = (1200, 1600)
Hence 68% of the land are between $1200 and $1600.
Number of farms = 68% × number of sample = 0.68 × 74 = 50.23 ≈ 51 farms
b) For an additional 29 farms, the number of additional farms between $1200 per acre and $1600 per acre = 29 × 0.68 ≈ 20 farms
a)The land is between $1200 and $1600. The number of farms is 51, b. The number of additional farms between $1200 per acre and $1600 per acre is 20 farms.
According to the Empirical Rule (or 3 sigma rule), for a normal distribution (bell shaped distribution), 68% of the data falls within one standard deviation (ut o), 95% fall within two standard deviations (u 20), and 99.7% fall within three standard deviations (+30). Given that the mean () is $1400 and the standard deviation () is $200,
a) The percentage of data within one standard deviation=uo=(1400+ 200) (1200, 1600)
Hence 68% of the land are between $1200 and $1600. Number of farms- 68% x number of sample - 0.68 74 50.23 51 farms
b) For an additional 29 farms, the number of additional farms between $1200 per acre and $1600 per acre- 29 x 0.68 = 20 farms.
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Much has been written about how to identify and interpret signs that indicate that a new organizational form is needed. Grinnell and Apple have identified five signs in addition to those previously described in Section 3.625:Management is satisfied with its technical skills, but projects are not meeting time, cost, and other project requirements.There is a high commitment to getting project work done, but great fluctuation in how well performance specifications are met.Highly talented specialists involved in the project feel exploited and misused.Particular technical groups or individuals constantly blame each other for failure to meet specifications or delivery dates.Projects are on time and to specification, but groups and individuals aren’t satisfied with the achievement. Grinnell and Apple state that there is a good chance that a matrix structure will eliminate or alleviate these problems. Do you agree or disagree? Does your answer depend on the type of project? Give examples or counterexamples to defend your answers.
Answers
Explanation:
I agree that the matrix structure will alleviate these problems encountered.
The matrix structure is a model characterized mainly by its flexibility. The organizational structure of the matrix structure is organized in work groups according to the project being carried out in the company, making the work functions more defined and dynamic, being able to change whenever there are new projects in view.
This structure helps companies to create greater autonomy in carrying out work, increasing coordination and satisfying specialization, which generates greater motivation in employees, increasing participation in the decision-making process, generating more innovation and productivity and the speed with which employees projects are finalized.
Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)Machine A could be purchased for $48,000. It will last 10 years with annual maintenance costs of $1,000 per year. After 10 years the machine can be sold for $5,000.Machine B could be purchased for $40,000. It also will last 10 years and will require maintenance costs of $4,000 in year three, $5,000 in year six, and $6,000 in year eight. After 10 years, the machine will have no salvage value.Required:Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year. Ignore income tax considerations. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)Calculate the present value of Machine A & Machine B. Which machine Esquire should purchase?
Answers
Answer: Machine B because it has the lower Present Value
Explanation:
Machine A= Present Value of income - Present Value of Costs
Present value of Income;
Sold for $5,000 after 10 years.
= 5,000/ (1 + 8%)^10
= $2,315.97
Present Value of Costs;
Purchased for $48,000.
Maintenance of $1,000 per year for years.
Present value of maintenance= 1,000 * Present value factor of annuity, 10 years, 8%
= 1,000 * 6.7101
= $6,710.10
Machine A Present Value
= 2,315.97 - 6,710.10 - 48,000
= -$52,394
Machine BNo salvage value.
Present Value of costs
Purchased for $40,000.
Present value of maintenance = (4,000 / (1 + 8%)^3) + (5,000 / ( 1 + 8)^6) + (6,000 / ( 1 + 8%)^8)
= -$9,567.79
Present Value = -40,000 - 9,567.79
= -$49,568
Park Corporation is planning to issue bonds with a face value of $710,000 and a coupon rate of 7.5 percent. The bonds mature in 8 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)
Required 1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answers
Answer:
Journal Entry
Issuance of bond
Dr. Cash $$669,387
Dr. Discount on Bond $40,613
Cr. Bond Payable $710,000
Explanation:
Price of the bond is the present value of all cash flows associated with bond.
Use following formula to calculate the issuance price f the bond
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
As per given data
Face Value = $710,000
Coupon payment = $710,000 x 7.5% x 6/12 = $26,625 semiannually
Number of periods = n = 8 years x 2 period per year = 16 period s
Market interest rate = 8.5% annually = 8.5% / 2 = 4.25% semiannually
PLacing values in the formula
Price of the Bond = $26,625 x [ ( 1 - ( 1 + 4.25% )^-16 ) / 4.25% ] + [ $710,000 / ( 1 + 4.25% )^16 ]
Price of the Bond = $304,598.24 + $364,788.66 = $669,386.90 = $669,387
Discount on the bond = $710,000- $669,387 = $40,613
A factory costs $290,000. You forecast that it will produce cash inflows of $85,000 in year 1, $145,000 in year 2, and $230,000 in year 3. The discount rate is 10%. a. What is the value of the factory
Answers
Answer:
The value of the factory is $79,909.84
Explanation:
The computation of the value of the factory is shown below:
= Initial investment + annual year cash flows ÷ (1 + rate of return)^number of years
= -$290,000 + $85,000 ÷ (1.10) + $145,000 ÷ (1.10)^2 + $230,000 ÷ (1.10)^3
After solving this, the value of the factory is equivalent to
= $79,909.84
Hence, the value of the factory is $79,909.84
Which staff member usually does the work of both a front desk clerk and an accounting clerk?
A. Controller
B. Credit manager
C. Accounts receivable clerk
D. Night auditor