Answer:
$25,000
Explanation:
Calculation to determine How much goodwill should be recognized by Rommer Company when recording the purchase of Daley Inc.
Using this formula
Goodwill=Beginning cash-Ending book value-Fair value tangible assets-Fair value intangible assets
Let plug in the formula
Goodwill=$4,700,000-$4,000,000-$525,000-$150,000
Goodwill=$25,000
Therefore the goodwill that the company should be recognized by Rommer Company when recording the purchase of Daley Inc. $25,000
The shareholders' equity of Green Corporation includes $200,000 of $1 par common stock and $400,000 of 6% cumulative preferred stock. The board of directors of Green declared cash dividends of $60,000 in 2011 after paying $20,000 cash dividends in each of 2010 and 2009. What is the amount of dividends common shareholders will receive in 2011?
a. 28000
b. 30000
c. 50000
d. 25000
Answer:
Option a (28000) is the right option.
Explanation:
Given:
Preferred stock,
= $400,000
In year 2009 and 2010, the dividends paid,
= $20,000 each year
Dividends declared,
= $60,000
Now,
The preferred dividend per year will be:
= [tex]Preferred \ stock\times 6 \ percent[/tex]
= [tex]400000\times 6 \ percent[/tex]
= [tex]24,000[/tex] ($)
Arrears in preferred dividend per year will be:
= [tex]24000-20000[/tex]
= [tex]4000[/tex] ($)
For preferred stock, the total dividends arrears will be,
= [tex]4000\times 2[/tex]
= [tex]8000[/tex] ($)
hence,
The dividends which are received by the common stock holders will be:
= [tex]Dividends \ declared-Preferred \ dividend-Arrears \ in \ preferred \ dividend[/tex]
By putting the values, we get
= [tex]60000-24000-8000[/tex]
= [tex]28000[/tex]
Loren is in charge of implementing a wellness program for his organization. In formulating the plans for the wellness program, Loren visits and studies a number of other businesses that have successfully implemented such programs. When it is time to actually start the program in his organization, which of the following services or benefits is Loren LEAST likely to include?
a. Smoking cessation programs
b. Nutrition and weight-loss seminars
c. Cancer treatments including chemotherapy and radiation therapies
d. Stress management workshop sessions
Answer:
c. Cancer treatments including chemotherapy and radiation therapies
Explanation:
A wellness.program is defined as a set of activities.aomed at improving the quality of life of individuals through exercise, proper diet, and stress management.
The main idea behind a wellness program is prevention of illness with a healthy routine.
In the given scenario the other options are wellness initiatives except Cancer treatments including chemotherapy and radiation therapies.
This is excluded because it is study of a full blown illness and not preventive strategies to stay healthy.
Marriage between individuals who have similar social characteristics
Homogamy is the marriage between individuals who have similar social characteristics.
What is homogamy?Homogamy is the practice that involves individuals marrying each other because they have similar characteristics. It involves marriage between individuals who are, in some culturally important way, similar to each other.
The similar characteristics in homogamy include:
Race/ethnicityReligious backgroundAgeEucation backgroundSocial backgroundTherefore, marriage between individuals who have similar social characteristics is know as homogamy.
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The accounts in the ledger of Monroe Entertainment Co. are listed below. All accounts have normal balances.
Accounts payable $598 Fees Earned $3,129
Accounts receivable 717 Insurance Expense 543
Supplies 500 Rent expense 1,500
Prepaid insurance 2,195 Land 2,773
Cash 2,002 Wages expense 651
Office equipment 1,800 Retained earnings 5,500
Dividends 701 Common stock 5,855
Unearned rent 1,600
Prepare a trial balance. The total of the debits is:
a. $11,200
b. $13,900
c. $12,700
d. $9,700
Tariq and Noelle work in the sales department at CTI Telecommunications. Tariq is the star salesman of the department and makes it his mission to motivate the rest of the team when sales numbers are down or when there are problems interacting with other departments. Meanwhile, Noelle consistently ranks in the middle or near the bottom in terms of sales, and she often gets distracted by calls from her teenage son. She also spends more time than she should socializing with friends in other departments. However, everyone, including the bosses, loves Noelle because of her true-blue loyalty to the company and her team. What else is most likely true of Noelle
Answer:
D. She volunteers to do the mundane tasks others avoid, and she does things like buying birthday cards for co-workers and organizing parties.
Explanation:
Noelle is an average perfomer so she is open for doing mundane task also she is not worried for star performance. in addition to this, she spends more time with some one as compared by having socializing. moreover, she is having a good skills and does not give priority to perform better as compared with others
So here the second last option is correct
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.25 coming 3 years from today. The dividend should grow rapidly - at a rate of 22% per year - during Years 4 and 5; but after Year 5, growth should be a constant 6% per year.
Required:
What is the value of the stock today?
Answer:
$52.75
Explanation:
the discount rate for this question was not provided. the discount rate used is 10%
Value of the stock in year 1 and 2 = 0
value of the stock in year 3 = $1.25
value of the stock in year 4 = ($1.25 x 1.22) / 1.10^4 = $1.04
value of the stock in year 5 = ($1.25 x 1.22^2) / 1.10^5 = $1.16
value of the stock in perpetuality = ($1.25 x 1.22^2 x 1.06) / (0.1 - 0.06) = $49.30
Value of the stock today = $49.30 + $1.16 + $1.04 + $1.25 = $52.75
The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 3,200 shares held as treasury stock. What is the entry for the dividend declaration?
Answer:
See below
Explanation:
The journal entry is shown below;
Dividend payable $10,080
_________To Cash $10,080
(Being the payment of dividend paid)
The computation is shown below;
= (20,000 shares - 3,200 shares) × $0.6
= $10,080
Dividend payable was debited as it decreases liabilities and credited cash as it reduced the assets.
1. Assume that your company is considering the lease of one of these HP copiers, and you expect that the average price for a color copy for your company would be $0.110 because you would carefully prioritize color copy jobs and reduce the number of copies requiring a large amount of color. You expect that training your copy center staff to properly use the new copier would cost about $6,150 for materials and lost work time. What is the breakeven number of color copies per year that would make you indifferent between the new HP copier and your current copier
Answer: 246,000 color copies
Explanation:
Cost of printing color pages using the old machine is not included so we will infer that.
We shall assume the cost of that to be $0.135.
In using this new copier made by HP, the cost saved per copy is:
= 0.135 - 0.110
= $0.025
The breakeven number of color copies that would make you indifferent would be the number of copies that would lead to a savings of $6,150 incurred on account of training the staff:
= 6,150 / 0.025
= 246,000 copies
To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $875, and has a par value of $1,000. If the firm's tax rate is 25%, what is the component cost of debt for use in the WACC calculation
Answer:
8.09%
Explanation:
Semi annual coupon = 1000*(9.25/2)% = 46.25
N = (20*2) = 40
Using Ms Excel to get I/Y
N = 40, PV=-875, PMT = 46.25, FV = 1000
CPT I/Y = I/Y(n, -pv, pmt, fv) * 2
CPT I/Y = I/Y(40, -875, 46.25, 1000) * 2
CPT I/Y = 5.39% * 2
CPT I/Y = 10.78%
After tax cost of debt = 10.78%*(1 - 0.25)
After tax cost of debt = 10.78%*0.75
After tax cost of debt = 0.08085
After tax cost of debt = 8.09%
Alpha Industries is considering a project with an initial cost of $9.7 million. The project will produce cash inflows of $1.67 million per year for 9 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 6.12 percent and a cost of equity of 11.61 percent. The debt–equity ratio is .77 and the tax rate is 40 percent. What is the net present value of the project?
Answer:
$660,000
Explanation:
WACC = [wD * kD * (1 - t)] + [wE * kE]
WACC = [(0.77 / 1.77)*6.12%* (1 - 0.40)] + [(1 / 1.77)*11.61%]
WACC = 1.60% + 6.56%
WACC = 8.16%
Present value of annuity = Annuity*[1-(1+interest rate)^-time period]/rate
Present value of annuity = $1.67*[1-(1.08156745763)^-9]/0.0816
Present value of annuity = $1.67*6.206374532
Present value of annuity = $10.36 million
NPV = Present value of inflows - Present value of outflows
NPV = $10.36 million - $9.7 million
NPV = $660,000
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,250,000. The project began in 2021 and was completed in 2022. Data relating to the contract are summarized below:
2018 2019
Costs incurred during the year $300,000 $1575,000
Estimated costs to complete as of 12/31 1,200,000 0
Billings during the year 380,000 1,620,000
Cash collections during the year 250,000 1,750,000
Required:
a. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming Nortel recognizes revenue over time according to percentage of completion.
b. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming this project does not qualify for revenue recognition over time.
c. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming Nortel recognizes revenue over time according to percentage of completion.
d. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming this project does not qualify for revenue recognition over time.
Answer:
Nortel Networks
Revenue Recognized over time according to percentage of completion:
2018:
Percentage of completion = 20%
Revenue = $450,000 ($2,250,000 * 20%)
Costs incurred 300,000
Gross profit = $150,000
2019:
Percentage of completion = 80% (100% - 20%)
Revenue = $1,800,000
Costs incurred 1,575,000
Gross profit = $225,000
b.
2018:
Revenue = $0
Costs incurred = $300,000
Gross loss = $300,000
2019:
Revenue = $2,250,000
Costs incurred 1,575,000
Gross profit = $675,000
c. Partial balance sheet (Revenue over time according to percentage of completion):
Assets:
2018
Accounts receivable $130,000
Equity:
Retained earnings $150,000
d. Partial balance sheet, assuming this project does not qualify for revenue recognition over time:
Assets:
2018
Accounts receivable $130,000
Equity:
Retained earnings ($300,000)
Explanation:
a) Data and Calculations:
Contract price = $2,250,000
2018 2019
Costs incurred during the year $300,000 $1575,000
Estimated costs to complete as of 12/31 1,200,000 0
Billings during the year 380,000 1,620,000
Cash collections during the year 250,000 1,750,000
Accounts Receivable:
2018 2019
Beginning balance $0 $130,000
Billings 380,000 1,620,000
Cash collection (250,000) 1,750,000
Ending balance $130,000 $0
c. Partial balance sheet (Revenue over time according to percentage of completion):
Assets:
2018 2019
Accounts receivable $130,000 $0
Equity:
Retained earnings $150,000 $225,000
d. Partial balance sheet, assuming this project does not qualify for revenue recognition over time:
Assets:
2018 2019
Accounts receivable $130,000 $0
Equity:
Retained earnings ($300,000) $675,000
If an announcement by a firm causes the price of that firm's stock to suddenly change, that price change will most likely be driven by:________.
a. the unexpected part of the announcement.
b. the expected part of the announcement
c. market inefficiency
d. systematic risk
Answer:
The correct answer is the option A: The unexpected part of the announcement.
Explanation:
To begin with, the stock market is characterized for being completely umpredictable due to the fact that the information available for the common people is not enough to predict the possible behaviors of the prices, so that means that when an unexpected announcement happens and nobody new about it then the market will react depending on how it takes the new so that explains that if something not good happens all the sudden the priece of the stocks of that company will probably go down due to the bad reception of the news.
The comparative balance sheets of Greenvale Games, Inc. show a net decrease in unexpired insurance of $400 and a net decrease in interest payable of $250. In order to reconcile net income with net cash flow from operating activities, net income should be:
Answer:
$150 increase
Explanation:
According to the scenario, computation of the given data are as follows,
Decrease in unexpired insurance = $400
Decrease in interest payable = $250
So, we can calculate the net income to reconcile by using following formula,
Net income = Decrease in unexpired insurance - Decrease in interest payable
= $400 - $250
= $150 ( Positive means increase)
So, net income should be increased by $150.
Whitmer Inc. sells to customers all over the U.S., and all receipts come in to its headquarters in New York City. The firm's average accounts receivable balance is $2.5 million, and they are financed by a bank loan at an 11% annual interest rate. The firm is considering setting up a regional lockbox system to speed up collections, and it believes this would reduce receivables by 20%. If the annual cost of the system is $15,000, what pre-tax net annual savings would be realized
Answer:
$40,000
Explanation:
Average accounts receivables = $2,500,000. Loan amount is also $2,500,000.
Interest rate is 11%. So, interest paid = $2,500,000*0.11 = $275,000
If the system reduces receivables by 20%,then current receivables = $2,500,000*0.8 = $2,000,000. So, loan amount = $2,000,000
Interest payable = $2,000,000*0.11 = $220,000
Cost of system = $15,000
Net annual savings = Interest payable without system - Interest payable after system installed - Cost of system
Net annual savings = $275,000 - $220,000 - $15,000
Net annual savings = $40,000
Condensed balance sheet and income statement data for Jergan Corporation are presented here.
Jergan Corporation
Balance Sheets
December 31
2020 2019 2018
Cash $ 30,600 $ 17,300 $ 17,300
Accounts receivable (net) 50,900 44,500 48,600
Other current assets 90,100 94,800 64,900
Investments 54,700 70,600 44,600
Plant and equipment (net) 500,600 370,000 358,700
$726,900 $597,200 $534,100
Current liabilities $85,600 $79,000 $70,700
Long-term debt 144,200 85,000 50,900
Common stock, $10 par 384,000 319,000 308,000
Retained earnings 113,100 114,200 104,500
$726,900 $597,200 $534,100
Jergan Corporation
Income Statement
For the Years Ended December 31
2020 2019
Sales revenue $736,500 $605,600
Less: Sales returns and allowances 40,200 31,000
Net sales 696,300 574,600
Cost of goods sold 424,600 372,000
Gross profit 271,700 202,600
Operating expenses (including income taxes) 181,181 150,886
Net income $ 90,519 $ 51,714
Additional information:
1. The market price of Jergan’s common stock was $7.00, $7.50, and $8.50 for 2018, 2019, and 2020, respectively.
2. You must compute dividends paid. All dividends were paid in cash.
(a) Compute the following ratios for 2019 and 2020. (Round Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)
2019 2020
(1) Profit margin % %
(2) Gross profit rate % %
(3) Asset turnover times times
(4) Earnings per share $ $
(5) Price-earnings ratio times times
(6) Payout ratio % %
(7) Debt to assets ratio % %
Answer:
1. 2020
Gross Margin Ratio = Gross Profit/Net Sale
Gross Margin Ratio = $271,700/$696,300
Gross Margin Ratio = 0.3902054
Gross Margin Ratio = 39.02%
2019
Gross Margin Ratio = Gross Profit/Net Sale
Gross Margin Ratio = $202,600/$574,600
Gross Margin Ratio = 0.35259311
Gross Margin Ratio = 35.26%
2. 2020
Profit Margin Ratio = Net Income / Net Sale
Profit Margin Ratio = $90,519/$696,300
Profit Margin Ratio = 0.13
Profit Margin Ratio = 13%
2019
Profit Margin Ratio = Net Income / Net Sale
Profit Margin Ratio = $51,714/$574,600
Profit Margin Ratio = 0.09
Profit Margin Ratio = 9%
3. 2020
Asset Turnover Ratio = Net Sales / Average Assets
Asset Turnover Ratio = $696,300 / [726900+597200)/2]
Asset Turnover Ratio = $696,300 / $662050
Asset Turnover Ratio = 1.05
2019
Asset Turnover Ratio = Net Sales / Average Assets
Asset Turnover Ratio = $574,600 / [(597200+534100)/2}
Asset Turnover Ratio = $574,600 / $565,650
Asset Turnover Ratio = 1.02
4. 2020
Earning per share = Net Income / Weighted Average Share
Earning per share = $90,519 / [(38400+31900)/2]
Earning per share = $90,519 / $35,150
Earning per share = 2.58
2019
Earning per share = Net Income / Weighted Average Share
Earning per share = $51,714 / [(31900+30800)/2]
Earning per share = $51,714 / $31,350
Earning per share = 1.65
5. 2020
Price Earning Ratio = Price/EPS
Price Earning Ratio = $8.50/2.58
Price Earning Ratio = 3.30
2019
Price Earning Ratio = Price/EPS
Price Earning Ratio = $7.50/1.65
Price Earning Ratio = 4.55
6. 2020
Debt Equity Ratio = Debt/Equity
Debt Equity Ratio = $229,800/$497100
Debt Equity Ratio = 0.46
2019
Debt Equity Ratio = Debt/Equity
Debt Equity Ratio = $164,000/$433200
Debt Equity Ratio = 0.38
Capable Golf Cart, Inc. (CGC) manufactures two models of golf cart: LX and EX. The budget data for next month is available. LX EX Total Units produced 50 30 80 Direct labor hours 2,000 3,000 5,000 Machine hours 1,500 1,200 2,700 Direct materials $125,000 $90,000 $215,000 Direct labor 90,000 60,000 150,000 Manufacturing overhead 202,500 Total $567,500 Required: 1. Compute the reported unit cost for each product if direct labor hours are used as the allocation base. 2. Compute the reported unit cost for each product if direct labor costs are used as the allocation base. 3. Compute the reported unit cost for each product if machine hours are used as the allocation base.
Solution :
1. Allocation on the basis of [tex]$\text{Direct labor hours}$[/tex]
LX EX
Direct Material 125000 90000
Direct [tex]$\text{labor}$[/tex] cost 90000 60000
Manufacturing overhead [tex]$81000$[/tex] [tex]$121500$[/tex]
(202500/5000 x 2000) (202500/5000 x 3000)
Total cost 296000 271500
Units produced 50 30
Cost per unit 5920 9050
2. Allocation on the basis of [tex]$\text{Direct labor costs}$[/tex]:
LX EX
Direct Material 125000 90000
Direct labor cost 90000 60000
Manufacturing overhead 121500 81000
(202500/150000 x 90000) (202500/150000 x 60000)
Total cost 336500 231000
Units produced 50 30
Cost per unit 6730 7700
3. Allocation on the basis of [tex]$\text{machine hours}$[/tex]
LX EX
Direct Material 125000 90000
Direct labor cost 90000 60000
Manufacturing overhead 112500 90000
(202500/2700 x 1500) (202500/2700 x 1200)
Total cost 327500 240000
Units produced 50 30
Cost per unit 6550 8000
Pecan acquires Southern in an acquisition reported as a merger. The acquisition results in $50 million in goodwill. The acquisition cost includes an earnings contingency, valued at $1 million at the date of acquisition. Within the measurement period, additional information on Southern's expected future performance at the date of acquisition reveals that the earnout actually had a fair value of $200,000 at the date of acquisition. The entry to record the new information includes a credit of $800,000 to:
Answer:
Dr Earnings contingency liability $800,000
Cr Goodwill $800,000
Explanation:
Based on the information given the appropiate journal entry to record the new information includes a credit of $800,000 to:Dr Earnings contingency liability $800,000 and Cr Goodwill $800,000 reason been that the acquisition cost is lesser.
Dr Earnings contingency liability $800,000
Cr Goodwill $800,000
It is an accounting question
Answer:
Latana Company
Classified Balance Sheet
As of the first month of operation
Assets
Current assets:
Cash $49,500
Short-term investments 10,000
Notes receivable 5,000
Supplies 900 $65,400
Long-term assets:
Land 15,000
Equipment 10,000 $25,000
Total assets $90,400
Liabilities and Equity
Current liabilities:
Accounts payable $400
Long-term liabilities:
Notes payable $15,000
Total liabilities $15,400
Stockholders' equity:
Common stock $750
Additional Paid-in Capital 74,250 $75,000
Total liabilities and equity $90,400
Explanation:
a) Data and Calculations:
Latana Company
Trial Balance
As of the first month of operation
Account Titles Debit Credit
Cash $49,500
Short-term investments 10,000
Notes receivable 5,000
Supplies 900
Land 15,000
Equipment 10,000
Accounts payable $400
Notes payable 15,000
Common stock 750
Additional Paid-in Capital 74,250
Total $90,400 $90,400
Midwest Corporation has provided the following data concerning manufacturing overhead for 2020: Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,360 and 4,200, respectively. The actual manufacturing overhead was $72,200. What is the predetermined manufacturing overhead rate per direct labor hour for the year
Answer:
$16.00
Explanation:
Predetermined manufacturing overhead rate = Budgeted Overheads ÷ Budgeted Activity
therefore,
Predetermined manufacturing overhead rate = $32,320 ÷ 2,020
= $16.00
Applied overheads = Predetermined manufacturing overhead rate x Actual activity
therefore,
Applied overheads = $16.00 x 2,410 = $38,560
Conclusion :
Under-applied overheads = $72,200 - $38,560
= $33,640
the predetermined manufacturing overhead rate per direct labor hour for the year is $16.00
In a year in which common stocks offered an average return of 18%, Treasury bonds offered 10% and Treasury bills offered 7%, the risk premium for common stocks was:_______
A. 1%.
B. 3%.
C. 8%.
D. 11%.
Explain.
What kinds of barriers get in the way of "following your dreams"?
Answer: A. Individuals may not have the talents or resources to simply do whatever they dream of doing.
The kind of obstacles that prevent people from "following their ambitions" It's possible that some people lack the skills or resources necessary to pursue their dreams.
What kinds of skills are examples?making excellent choices despite having little knowledge. recognizing other people's viewpoints and interacting with various types of people successfully. Setting objectives, keeping track of progress, and making an effort to enhance your job. generating original answers and imaginative concepts to address issues.
What does human resources talent mean?Talent management, which includes a variety of HR procedures throughout the employee life cycle, is the attraction, selection, and retention of personnel. It includes hiring, onboarding, succession planning, learning and development, performance management, workforce planning, and employee engagement.
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Answer:
Individuals may not have the talents or resources to simply do whatever they dream of doing.
Explanation: Just took the test
Chapter 13: Statement of Cash Flows Amount OA, IA, or FA (for extra credit only) Accounts payable increase $ 9,000 Accounts receivable increase 4,000 Salaries payable decrease 3,000 Amortization expense 6,000 Cash balance, January 1 22,000 Cash balance, December 31 15,000 Cash paid as dividends 29,000 Cash paid to purchase land 90,000 Cash paid to retire bonds payable at par 60,000 Cash received from issuance of common stock 35,000 Cash received from sale of equipment 17,000 Depreciation expense 29,000 Gain on sale of equipment 4,000 Inventory decrease 13,000 Net income 76,000 Prepaid expenses increase 2,000 Using the information above, calculate the cash flow from operating activities using the indirect method.
Answer:
Net Cash flow from operating activities $120,000.00
Explanation:
The computation of the cash flows from operating activities is shown below:
Cash flow from operating activities
Income $76,000.00
Less: Gain on sale of equipment (4,000.00)
Add: Depreciation expense 29,000.00
Add: Amortisation expense 6,000.00
Adjustments:
Add: Account payable increase 9,000.00
Less: Account receivable increase (4,000.00)
Less: Salaries payable decrease (3,000.00)
Add: Inventory decrease 13,000.00
Less: Prepaid expese increase (2,000.00)
Net Cash flow from operating activities $120,000.00
In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. Holding all else constant, the effect of this tax would be to _____ in the District of Columbia.
Answer:
b. decrease Amazon sales
Explanation:
Note: "Options the question is attached as picture below"
In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. If we hold all else equal, the effect of this tax would be to decrease Amazon Sales In the District of Columbia.
This action will consequentially increase the sales in local Market and then discourage online shopping along with it In Columbia district; it will decrease sales overall.
On January 1, 2020, Grand Haven, Inc., reports net assets of $790,800 although equipment (with a four-year remaining life) having a book value of $452,000 is worth $520,000 and an unrecorded patent is valued at $54,900. Van Buren Corporation pays $730,960 on that date to acquire an 80 percent equity ownership in Grand Haven. If the patent has a remaining life of nine years, at what amount should the patent be reported on Van Buren's consolidated balance sheet at December 31, 2021
Answer:
The answer is "42700".
Explanation:
1 January 2020 Patent of Fair Value [tex]54900[/tex]
Less: 2020 and 2021 amortisation[tex]=54900\times \frac{2}{9} \ \ \ \ \ \ =12200[/tex]
December 31, 2021 Patent reported amount [tex]42700[/tex]
The following units of a particular item were available for sale during the calendar year:
Jan. 1 Inventory 4,000 units at $20
Apr. 19 Sale 2,500 units
June 30 Purchase 6,000 units at $24
Sept. 2 Sale 4,500 units
Nov. 15 Purchase 1,000 units at $25
The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method.
Answer:
Cost of goods sold $152,000
Closing inventory $97,000
Explanation:
Under the FIFO system , inventories are priced using the price of the oldest batch in the stock, after which the price of the next oldest batch and this is done in turn. It is based on the principle that the first batch that arrives the store should be issued first.
Total units sold = 2,500+4,500= 7,000
Using the FIFO method of the perpetual inventory, the 7,000 units sold by will be priced as follows:
2500 units at a price of $20 = $50,000
Next 1500units at a price of $20 = $30,000
Next 3,000 units at a price of $24= $72,000
Cost of goods sold 152,000
Closing inventory = Total cost of goods available for sale- cost of goods sold
Total cost of goods available for sale =
(4,000× 20) + (6,000× 24) + (1,000× $25) = 249,000
Closing inventory = 249,000 - 152,000=$97,000
Cost of goods sold $152,000
Closing inventory $97,000
Consider the two countries of Swala and Atlantis. Swala is a major producer of wheat and rice while Atlantis specializes in the production of marble and automobile parts. Engaging in free trade benefits both countries since Swala is an agrarian nation and Atlantis lacks arable land. This follows the theory of comparative advantage, and we can say that engaging in free trade benefits all countries that participate in it; however, this conclusion is based on which inaccurate assumptions?
a. We have assumed a simple world in which there are only two countries.
b. We have assumed the prices of resources and exchange rates in the two countries are dynamic.
c. We have assumed there are barriers to the movement of resources from the production of one good to another within the same country.
d. We have assumed that agrarian nations do not specialize in producing fertilizers.
e. We have assumed diminishing returns to specialization.
12-3. (Break-even point and selling price) Simple Metal Works, Inc. will manufacture and sell 300,000 units next year. Fixed costs will total $350,000, and variable costs will be 65 percent of sales. The firm wants to achieve a level of earnings before interest and taxes of $250,000. What selling price per unit is necessary to achieve this result
Answer:
Selling price= $5.08
Explanation:
Giving the following information:
Number of units= 300,000
Fixed costs= $350,000
Desired profit= $250,000
Variable cost rate= 0.65
First, we need to calculate the unitary contribution margin using the break-even point formula:
Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit
300,000 = (350,000 + 250,000) / contribution margin per unit
300,000 contribution margin per unit = 600,000
contribution margin per unit= 600,000/300,000
contribution margin per unit= $2
If the variable cost rate is 0.65, then:
Unitary varaible cost= 2/0.65= $3.08
Selling price= contribution margin per unit - unitary varaible cost
Selling price= 2 - (-3.08)
Selling price= $5.08
equity method to account for inOn January 1 of the current year, Beta Company paid $200,000 for shares of Gamma Company common stock. Beta owns 10% of Gamma Company. Gamma reported net income of for December 31 of the current year. The fair value of the Gamma stock on that date was . What amount will be reported in Beta's balance sheet for the investment in Gamma at December 31?vestments
Answer:
$270,000
Explanation:
Calculation to determine What amount will be reported in Beta's balance sheet for the investment in Gamma at December 31
Using this formula
December 31 Investment in Gamma= Shares of Gamma*Fair value of the Gamma stock
Let plug in the formula
December 31 Investment in Gamma = 10,000 shares*$27
December 31 Investment in Gamma = $270,000
Therefore The amount that will be reported in Beta's balance sheet for the investment in Gamma at December 31 is $270,000
A public good is A. any good provided by government. B. a good that can be most cheaply provided by government, though it may in fact be provided by private enterprise. C. a good whose benefits cannot readily be restricted to a small group of people. D. a good whose benefits cannot be enjoyed by an individual alone.
Answer:
C. a good whose benefits cannot readily be restricted to a small group of people.
Explanation:
Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.
The four factors of production are;
I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.
II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.
III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.
IV. Entrepreneurship: it is intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).
These four (4) factors of production when combined effectively and efficiently are used for the manufacturing or production of goods and services that meets the unending requirements or needs of the consumers.
A public good is a good whose benefits cannot readily be restricted to a small group of people.
This ultimately implies that, a public good such as power utility (electricity) or water supply is capable of being provided simultaneously to the general public.
Furthermore, a public good is non-excludable and cannot be exhausted due to its use by the general public i.e it's never depleted.
A leader has a problem of low Product X sales. She meets individually (i.e., one at a time) with a number of her subordinates and shares the problem of low Product X sales. She asks for their ideas and suggestions about how to increase Product X sales and then makes the decision alone based on their input. According to Vroom and Yetton's normative theory of leadership, what decision-making style is the leader using in this situation
Answer: CI consultative.
Explanation:
According to Vroom and Yetton's normative theory of leadership, the decision-making style that the leader is using in this situation is the consultative leadership style.
This is a form of leadership style whereby the leader seeks the opinion of his team members and then uses the input gotten from them to make a final decision. Since the leader meets them individually and seeks their opinion, the leader is using a consultative leadership style.