Answer:
$1,080,000
Explanation:
Calculation to determine how much is the total budgeted selling and administrative expenses for October
October Total budgeted selling and administrative expenses=
[($1 + $3 + $4 + $2) x 94,000] + ($10,000 +
$120,000 + $4,000 + $6,000)
October Total budgeted selling and administrative expenses=(10*94,000)+$140,000
October Total budgeted selling and administrative expenses=$940,000+$140,000
October Total budgeted selling and administrative expenses=$1,080,000
Therefore the total budgeted selling and administrative expenses for October is $1,080,000
Boyne Inc. had beginning inventory of $12,000 at cost and $20,000 at retail. Net purchases were $120,000 at cost and $170,000 at retail. Net markups were $10,000, net markdowns were $7,000, and sales revenue was $147,000. Compute ending inventory at cost using the conventional retail method.
Answer:
Ending inventory at cost $30,360
Explanation:
The computation of the ending inventory at cost using conventional retail method is shown below:
Particulars Cost Retail Cost to retail ratio
beginning inventory $12,000 $20,000
Add: purchase $120,000 $170,000
Add:Net markups $10,000
Less: net markdown -$7,000
Goods available for sale $132,000 $193,000
Cost to retail percentage 66% ($132,000 ÷ $200,000)
Less: net sales $147,000
Estimated ending inventory at retail $46,000
Ending inventory at cost $30,360
($46,000 ×0.66)
Marketing managers must choose between the various forms of advertising media available as they develop their communication plans.
a. True
b. False
Answer:
true
Explanation:
A person who files bankruptcy ends up paying a 6% higher fixed interest rate on a 30-year home loan than a person
who has not filed bankruptcy. The person who files bankruptcy pays a 12% interest rate on their home loan. If the loan
amount is $150,000, how much more in total interest do they pay than the person who has not filed bankruptcy?
A. $258,375.30
B. $643.59
C. $149,536.52
D. $231,693.52
Answer:
D 231,692.52
Explanation:
got it right on edge21
Based on the interest rates given to the person who has filed for bankruptcy and the person who hasn't, the additional amount in total interest that the person with bankruptcy will pay is D. $231,693.52.
What would the person who declared bankruptcy pay?The amount that they pay can be found as:
Loan amount = Amount x ( 1 - ( 1 + rate) ^ -number of periods) / rate
Rate is: Number of periods:
= 12% / 12 = 30 x 12
= 1% per month = 360 months
The amount paid monthly is:
150,000 = Amount x ( 1 - (1 + 1%) ⁻³⁶⁰) / 1%
150,000 = Amount x 97.218331079
Amount = 150,000 / 97.218331079
= $1,542.92
What would the person who has never declared bankruptcy pay?They pay a 6% less than the person who has declared bankruptcy so they will pay:
= 12% - 6%
= 6%
Rate is therefore:
= 6% / 12
= 0.5%
Amount paid monthly is:
150,000 = Amount x ( 1 - (1 + 0.5%) ⁻³⁶⁰) / 0.5%
150,000 = Amount x 166.7916143923
Amount = 150,000 / 166.7916143923
= $899.33
What is the difference in interest?= (Amount paid by person with previous bankruptcy - Person with no history of bankruptcy) x 360 months
= (1,542.92 - 899.33) x 360
= $231,693.52
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The balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 158,800 $ 123,000 Accounts receivable 84,000 95,000 Inventory 98,000 83,000 Investments 4,300 2,300 Long-term assets: Land 510,000 510,000 Equipment 820,000 700,000 Less: Accumulated depreciation (458,000 ) (298,000 ) Total assets $ 1,217,100 $ 1,215,300 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 102,000 $ 88,000 Interest payable 7,500 12,300 Income tax payable 9,500 5,300 Long-term liabilities: Notes payable 100,000 200,000 Stockholders' equity: Common stock 730,000 730,000 Retained earnings 268,100 179,700 Total liabilities and stockholders' equity $ 1,217,100 $ 1,215,300 Additional information for 2021: Net income is $88,400. Sales on account are $1,628,900. Cost of goods sold is $1,230,800. Required: 1. Calculate the following risk ratios for 2021: (Round your answers to 1 decimal place.)
Answer:
Missing word: "a. Receivables turnover ratio b. Inventory turnover ratio c. Current ratio d. Acid-test ratio d. Debt-equity ratio"
a. Receivable turover ratio = Net credit sales/ Average receivbles
= $1,628,900/ (($84000+$95000)/2)
= $1,628,900 / $89,500
= 18.2 Times
b) Inventory Turnover ratio = Cost of goods sold / Average inventory
= $1,230,800/ (($98,000+$83,000)/2)
= $1,230,800/$90,500
= 13.6 Times
c) Current ratio = Current assets / Current liabilities
= ($158,000+$84,000+$98,000+$4,300) / ($102,000+$7,500+$9,500
= $344,300/$119,000
= 2.893277311
= 2.89 to 1
d) Acid test ratio = ( Current assets - Inventory ) / Current liabilities
= ($344,300 - $98,000) / $119,000
= $246,300 / $119,000
= 2.0697478992
= 2.07
e) Debt-equity ratio = Total Liability (Current + Non-current) / Stockholders' equity
= ($119,000+$100,000) / ($730,000+$268,100)
= $219,000 / $998,100
= 0.2194169
= 22%
Alan does not want to lend his car to his co-worker, Linda, because he believes that all women are irresponsible drivers. Which of the following barriers to accepting diversity does this scenario illustrate?
a.Backlash
bPrejudice
c.Harassment
d.Pluralism
How can social media help employers during the hiring process ? Check all that apply
Social Media often provides a place for employers to begin their search, social media can fill in gaps on resumes or provide additional details, some sites can be a platform for recruiters to promote job openings.
Explanation: just got it right e2020
Employers frequently start their search on social media; it can complete information gaps on resumes or provide new information, and some sites can be used as a platform by recruiters to advertise job openings.
What is media?The term media, which is the word form of medium, refers to the human activity channels through which we disseminate news, music, movies, education, promotional messages, and other data This can include anything from black and white paper to digital data and includes art, news, educational content and numerous other forms of information.
Social media sites can be used to advertise job openings, find prospects, and confirm applicant backgrounds. Promote your employer brand. Sharing media about corporate values and employee events can assist build an employer brand to draw potential employees and clients.
Social media platforms provide human resources hiring departments with significantly more candidate information than they would have otherwise had at their fingertips. Employers have typically been restricted to the data that candidates include on their paper resumes.
Therefore, Thus option (B) is correct.
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On January 1, 2022, The Eighties Shop has 100,000 shares of common stock outstanding. The Eighties Shop incurred the following transactions in 2022.
March 1 Issues 53,000 additional shares of $1 par value common stock for $50 per share.
May 10 Purchases 4,800 shares of treasury stock for $53 per share.
June 1 Declares a cash dividend of $1.40 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.)
July 1 Pays the cash dividend declared on June 1.
October 21 Resells 2,400 shares of treasury stock purchased on May 10 for $58 per share.
Required:
Record each of these transactions.
Answer:
Date General Journal Debit Credit
March 1 Bank A/c $2,650,000
(53,000 × $50)
Share Capital A/c $53,000
(53,000 × $1)
Share Premium A/c $2,597,000
[53,000 × $49 ($50 - $1)}
(Being additional 53,000 issued shares for $50)
May 10 Treasury Stock A/c $254,400
(4,800 × $53)
Cash A/c (4,800 × $53) $254,400
(Being purchase of 4,800 treasury stock for $53 )
June 1 Retained Earning A/c $207,480
(1,53,000- 4,800) × $1.4
Dividend Payable A/c $207,480
[(153,000 - 4,800) × $1.4]
(Being cash dividend declared)
July 1 Dividend Payable A/c $207,480
Cash A/c $207,480
(Being cash dividend paid)
October 21 Cash A/c (2,400 × $58) $139,200
Treasury Stock (2,400 × $53) $127,200
Paid in Capital from treasury Stock $12,000
(2400 × $5)
(Being 2,400 Treasury Stock sold for $58)
The Eighties Shop will record the journal entries for the 2022 transactions as follows:
Journal Entries:
March 1 Debit Cash $2,650,000
Credit Common Stock $53,000
Credit Additional Paid-in Capital $2,597,000
To record the issuance of 53,000 shares at $50 per share.May 10 Debit Treasury Stock $4,800
Debit Additional Paid-in Capital $249,600
Credit Cash $254,400
To record the purchase of 4,800 shares of treasury stock at $53 per share.June 1 Debit Dividend $207,480
Credit Dividends Payable $207,480
To record the declaration of cash dividends on 148,200 shares at $1.40 per share.July 1 Debit Dividends Payable $207,480
Credit Cash $207,480
To record the payment of dividends.Oct. 21 Debit Cash $139,200
Credit Treasury Stock $2,400
Credit Additional Paid-in Capital $136,800
To record the resale of 2,400 shares of treasury stock at $58 per share.Data and Calculations:
Outstanding Common Stock = 100,000 shares
March 1 Cash $2,650,000 Common Stock $53,000 Additional Paid-in Capital $2,597,000
May 10 Treasury Stock $4,800 Additional Paid-in Capital $249,600 Cash $254,400
June 1 Dividend $207,480 Dividends Payable $207,480 (148,200 x $1.40)
July 1 Dividends Payable $207,480 Cash $207,480
Oct. 21 Cash $139,200 Treasury Stock $2,400 Additional Paid-in Capital $136,800
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Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 1,000 $ 14 $ 16 $ 20 B 800 19 15 22 C 700 7 6 12 D 600 11 8 10 E 800 18 16 17 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 35 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Answer:
Forester Company
1. The carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to individual products, is:
= $47,800
2. The carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory, is:
= $49,800
3. Assuming inventory write-downs are common for Forester, the necessary year-end adjusting entry based on requirement 2 is:
Debit Cost of goods sold (Inventory write-down) $5,200
Credit Inventory $5,200
To write down the inventory value from $55,000 (purchase costs) to $49,800 (replacement costs).
Explanation:
a) Data and Calculations:
Product Quantity Unit Cost Unit Replace- Unit Selling LCM Value
ment Cost Price
A 1,000 $ 14 $ 16 $ 20 $14,000 ($14*1,000)
B 800 19 15 22 12,000 ($12*800)
C 700 7 6 12 4,200 ($6*700)
D 600 11 8 10 4,800 ($8*600)
E 800 18 16 17 12,800 ($16*800)
Total 3,900 $47,800
Total costs = (1,000*$14 + 800*$19 + 700*$7 + 600*$11 + 800*$18)
= ($14,000 + 15,200 + 4,900 + 6,600 + 14,400)
= $55,000
Tota replacement costs = (1,000*$16 + 800*$15 + 700*$6 + 600*$8 + 800*$16)
= ($16,000 + 12,000 + 4,200 + 4,800 + 12,800)
= $49,800
Total market value = (1,000*$20 + 800*$22 + 700*$12 + 600*$10 + 800*$17)
= ($20,000 + 17,600 + 8,400 + 6,000 + 13,600)
= $65,600
Total cost = $55,000
Total replacement cost = $49,800
Inventory write-down = $5,200
Finance charges always include which of the following?
a. Mortgage broker fee
b. Title insurance charges
c. Document preparation fees
d. Credit report fee
Answer:
I believe the answer is C: Document Preparation Fees.
Jamal is a web designer working on an e-commerce website for a client. He is looking for information regarding the buying habits of 50- to 60-year-old males who have no children. What sources are considered reliable?
Select all that apply.
published marketing survey
government data
blogs
Wikipedia
Simon Company's year-end balance sheets follow.
At December 2017 2016 2015
Assets
Cash $25,396 $29,685 $30,922
Accounts receivable, net 89,900 63,000 57,000
Merchandise inventory 100,500 84,000 60,000
Prepaid expenses 8,178 7,792 3,436
Plant assets, net 200,810 190,337 164,142
Total assets $434,784 $374,814 $315,500
Liabilities and Equity
Accounts payable $107,179 $62,710 $41,230
Long-term notes payable secured by mortgages on plant assets
80,922 85,345 69,028
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 84,183 64,259 42,742
Total liabilities and equity $434,784 $374,814 $315,500
The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit:
For Year Ended December 31 2017 2016
Sales $565,219 $446,029
Cost of goods sold $344,784 $289,919
Other operating expenses 175,218 112,845
Interest expense 9,609 10,259
Income taxes 7,348 6,690
Total costs and expenses 536,959 419,713
Net income $28,260 $26,316
Earnings per share $1.74 $1.62
Compute days' sales uncollected.
Answer:
2017 Days' Sales Uncollected 49.37 days
2016 Days' Sales Uncollected 49.10 days
Explanation:
Computation for days' sales uncollected
Using this formula
Days' Sales Uncollected=Average receivables / Credit sales x 365 days
Let plug in the formula
2017 Days' Sales Uncollected= $76,450 / $565,219 x 365
2017 Days' Sales Uncollected= 49.37 days
[($89,900+$63,000)/2=$76,450]
2016 Days' Sales Uncollected= $60,000 / $446,029 x 365 days
2016 Days' Sales Uncollected= 49.10 days
[($63,000+$57,000)/2=$60,000]
Therefore 2017 Days' Sales Uncollected will be 49.37 days and 2016 Days' Sales Uncollected will be 49.10 days
Simon Company's year-end balance sheets follow. At December 2017 2016 2015 Assets. To compute the days' sales uncollected, we need to calculate the average accounts receivable and divide it by the average daily sales.
Average Accounts Receivable:
2017:
(Beginning Accounts Receivable + Ending Accounts Receivable) / 2
= ($63,000 + $89,900) / 2
= $76,450
2016:
(Beginning Accounts Receivable + Ending Accounts Receivable) / 2
= ($57,000 + $63,000) / 2
= $60,000
Average Daily Sales:
2017: Net Sales / 365
= $565,219 / 365
= $1,547.15
2016: Net Sales / 365
= $446,029 / 365
= $1,221.53
Days Sales Uncollected:
2017: Average Accounts Receivable / Average Daily Sales
= $76,450 / $1,547.15
= 49.48 days
2016: Average Accounts Receivable / Average Daily Sales
= $60,000 / $1,221.53
= 49.12 days
Therefore, the days sales uncollected for Simon Company are approximately 49.48 days in 2017 and 49.12 days in 2016.
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Problem solving and critical thinking are ______ because they use logic and reasoning to develop and evaluate options
The following information relates to Mountain Transportation for its first year of operations (data in millions of dollars): Pretax accounting income: $ 300 Pretax accounting income included: Overweight fines (not deductible for tax purposes) 8 Depreciation expense 80 Depreciation in the tax return using MACRS: 160 The applicable tax rate is 40%. There are no other temporary or permanent differences. Mountain's net income ($ in millions) is:
Answer:
the net income is $176.80 millions
Explanation:
The computation of the net income is shown below"
Pre tax accounting income $300
Less: income tax expense
tax payable (($300 + $8 - $80) × 40%) -$91.2
Deferred tax liability ($80 × 0.40) -$32
net income $176.80
Hence, the net income is $176.80 millions
We simply deduct the income tax expense from the pre tax accounting income so that the net income could come
Write a 750-1,000 word paper that includes the following criteria: Describe the top three internal and top three external risks currently threating PHI data within your selected organization. Explain how risk assessments are conducted within the organization. Discuss who conducts these assessments and with what frequency. How do these assessments mitigate the risks you have identified
Answer:
as
Explanation:
ss
Selected financial data regarding current assets and current liabilities for Queen's Line, a competitor in the cruise line industry, is provided: ($ in millions) Current assets: Cash and cash equivalents $ 410 Current investments 65 Net receivables 204 Inventory 136 Other current assets 145 Total current assets $ 960 Current liabilities: Accounts payable $ 1,032 Short-term debt 744 Other current liabilities 869 Total current liabilities $ 2,645 Required: 1. Calculate the current ratio and the acid-test ratio for Queen's Line. (Enter your answers in millions, not in dollars. For example, $5,500,000 should be entered as 5.5.)
Answer and Explanation:
The calculation of the current ratio and the acid ratio is shown below;
The current ratio is
= Current assets ÷ current liabilities
= $960 ÷ $2,645
= 0.3629 times
The quick ratio is
= Quick assets ÷ current liabilities
Here quick assets is
= Current assets - inventory - other current assets
= $960 - $136 - $145
= $679
So, the quick rato or acid test ratio is
= $679 ÷ $2,645
= 0.2567 times
Which of the following is true about duration and modified duration?
I. The Macaulay duration calculates the weighted average time before a bondholder would receive the bond's cash flows.
II. Modified duration measures price sensitivity of a bond to changes in YTM by adjusting duration with a factor based on current yield.
III. The value of duration and modified duration are usually very close, but duration is almost always a larger number.
a. Only I and II are true.
b. All but IV are true.
c. Only II and III are true.
d. All are true.
Answer:
The truth about Macaulay Duration and Modified Duration is:
d. All are true.
Explanation:
Principally, the Macaulay Duration, used mainly with immunization strategies, measures the weighted average time an investor holds a bond until the period when the present value of the bond’s cash flows equals to the initial bond amount.
On the other hand, the Modified Duration, providing a risk measure by being sensitive to interest rates, identifies the amount by which the duration changes for each percentage change in the yield and, at the same time, measures how the amount of a change in the interest rates impacts a bond's price.
e the information provided for Harding Company to answer the question that follow. Harding Company Accounts payable $34,006 Accounts receivable 73,344 Accrued liabilities 6,760 Cash 17,227 Intangible assets 43,450 Inventory 88,373 Long-term investments 92,820 Long-term liabilities 79,618 Notes payable (short-term) 28,798 Property, plant, and equipment 675,759 Prepaid expenses 1,646 Temporary investments 34,230 Based on the data for Harding Company, what is the amount of quick assets?
Answer:
The amount of quick assets is $126,447.
Explanation:
Quick assets can be described as the most highly liquid assets of a company.
The amount of quick assets can be calculated for Harding Company as follows:
Amount of quick assets = Accounts receivable + Cash + Prepaid expenses + Temporary investments = $73,344 + $17,227 + $1,646 + $34,230 = $214,820 = $126,447
Decca Publishing paid $230,000 to acquire Thrifty Nickel, a weekly advertising paper. At the time of the acquisition, Thrifty Nickel balance sheet reported total assets of $130,000 and liabilities of $70,000. The fair market value of Thrifty Nickels assets was $100,000. The fair market value of Thrifty Nickel liabilities was $70,000.
Required:
a. How much goodwill did Decca Publishing purchase as part of the acquisition of Thrift Nickel?
b. Journalize Decca Publishing's acquisition of Thrifty Nickel.
Answer:
Part a
$200,000
Part b
Debit : Investment in subsidiary $230,000
Credit : Cash $230,000
Explanation:
Goodwill is the excess of the Purchase Price over the Net Assets taken over at the acquisition date.
Assets and liabilities are taken over at their acquisition date Fair Values instead of Book Values so be sure to adjust any items shown at Book Value.
Net Assets = Assets at Fair Value - Liabilities at Fair Value
= $100,000 - $70,000
= $30,000
Goodwill = Purchase Price - Net Assets Taken over
= $230,000 - $30,000
= $200,000
Maria, a citizen and resident of Mexico, received the following investment income during 2018: $1,000 of dividend income from ownership of stock in a U.S. corporation, $2,000 interest from a bond issued by a U.S. corporation, $3,000 of rental income from property located in the United States, and $500 capital gain from sale of a stock in a U.S. corporation. How much of Maria’s income will be subject to U.S. taxation in 2018?
Answer: $6,000
Explanation:
Maria is a citizen and resident of Mexico so the only way the U.S. can tax Maria is by taxing income that is in U.S. jurisdiction before it comes to Maria.
This will include the dividend from ownership of stock in a U.S. Corporation, the interest from a U.S. company issued bond and rental income from a property located in the U.S.
The U.S. will be unable to tax the capital gain from sale of stock however because the sale might not be conducted in the U.S.
Income subject to U.S. taxation is therefore:
= 1,000 + 2,000 + 3,000
= $6,000
In the month of November, Oriole Company Inc. wrote checks in the amount of $10,410. In December, checks in the amount of $11,075 were written. In November, $8,245 of these checks were presented to the bank for payment, and $10,700 in December. There were no outstanding checks at the beginning of November. What is the amount of outstanding checks at the end of November
Answer: $2165
Explanation:
Based on the information given, the amount of outstanding checks at the end of November will be the difference between the amount of checks written in November and the amount of checks that were presented to the bank for payment. This will be:
= $10,410 - $8245
= $2165
Therefore, the answer is $2165.
On January 1, 2016, Telespace Inc. grants 6 million non-qualified stock options to its employees. The stock options have exercise price of $20, which is equal to the grant-date price. All options will vest in three years. The grant date fair value of the options is $15 per option. All 6 million options are expected to vest. On January 1, 2019, all 6 million vested options are exercised when the stock price is $50. The applicable tax rate for all periods is 40%. The company has sufficient taxable income for the stock option tax deductions to reduce income taxes payable in all periods.
How much compensation expense should Telespace recognize for the year of 2016?
Answer:
$30,000,000
Explanation:
compensation expense = total number of stocks granted x grant date value = 6,000,000 x $15 = $90,000,000
this expense will be allocated proportionally during the vesting period = $90,000,000 / 3 years = $30,000,000 per year
compensation expense per year (2016, 2017, 2018) = $30,000,000
should you be concerned about data security? in a recent survey _______ americans reported that they do not trust businesses with their personal information online.
a) less than 30%
b) more than 75%
c) approximately 60%
e) approximately 45%
In a recent survey more than 75% Americans reported that they do not trust businesses with their personal information online. People should you be concerned about data security.
What is data security?Data security refers to the process of protecting data from unauthorized access and corruption throughout its lifecycle. For all apps and platforms, data encryption, hashing, tokenization, and key management are all data security solutions.
Thus, option B, more than 75% is correct.
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Suppose you are interested in taking an FHA mortgage loan for $350,000 in order to purchase your principal residence. In order to do so, you must pay an additional up-front mortgage insurance premium (UFMIP) of 1.0% of the mortgage balance. If the interest rate on the fully amortizing mortgage loan is 6% and the term is 30 years and the UFMIP is financed (i.e., it is included in the loan amount), what is the dollar portion of your monthly mortgage payment that is designated to cover the UFMIP
Answer:
The answer is "$20.98 ".
Explanation:
[tex]Loan \ Amount = - 350,000\\\\UFMIP (1\%) = - 3500\\\\Total \ Loan \ Amount = - 353,500\\\\\frac{I}{y} =\frac{6\%}{12} = 0.5 \\\\N = 30\times 12 = 360\\\\PV= -353500\\\\ CPT \ PMT = \$2,119.41 \\\\[/tex]
Suppose
[tex]Loan = 100\\\\UFMIP = 1\\\\Loan\ \ Amount = 101\\\\Proportionate\ \ UFMIP = 2119.41 \times ( \frac{1}{101})= 20.98[/tex]
Ahmed Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and merchandise inventory balances. Cash payments on accounts payable during each month are expected to be: May, $1,600,000; June, $1,490,000; July, $1,425,000; and August, $1,495,000.
Accounts Payable Merchandise Inventory
May 31 $150,000 $250,000
June 30 200,000 400,000
July 31 235,000 300,000
August 31 195,000 330,000
Use the available information to compute the budgeted amounts of (1) Merchandise purchases for June, July, and August (2) Cost of goods sold for June, July, and August.
Answer:
Explanation:
The merchandise purchase can be determined by using the formula:
Purchase = Cash payments + Ending Accounts Payable - Beginning Accounts Payable
For June:
Purchase = $(1490000 + 200000 - 150000)
Purchase = $(1690000 - 150000)
Purchase = $1540000
For July:
Purchases: $(1425000+235000 - 200000)
Purchases = $(1660000 - 200000)
Purchases = $1460000
For August:
Purchases: $(1495000 + 195000 - 235000)
Purchases: $(1690000 - 2235000)
Purchases: $1455000
The cost of goods sold = Beginning Inventory + Purchase - Ending inventory
For June:
Cost of goods sold= $(250000 + 1540000 - 400000)
Cost of goods sold= $(1790000 - 400000)
Cost of goods sold = $1390000
For July:
Cost of goods sold = $(400000 + 1460000 - 300000)
Cost of goods sold = $(1860000 - 300000)
Cost of goods sold = $1560000
For August:
Cost of good sold = $(300000+ 1455000 - 330000)
Cost of good sold = $(1755000 - 330000)
Cost ofgood sold = $1425000
Which situation(s) would be considered unethical design practices?
Select all that apply.
copying a design idea
making false claims about a product
designing a political campaign
using your own photographs
Answer:
I think A
Explanation:
copying a design idea
You manage an equity fund with an expected risk premium of 10% and an expected standard deviation of 15%. The rate on Treasury bills (risk-free rate) is 5%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund.
Required:
What is the expected return and standard deviation of return on your client's portfolio?
Answer:
Portfolio expected return = 8%
Portfolio SD = 9%
Explanation:
Portfolio return is a function of the weighted average return of each stock or asset invested in the portfolio. The mean return on portfolio can be calculated using the following formula,
Portfolio return = wA * rA + wB * rB + wN * rN
Where,
w represents the weight of each stock or asset in the portfolior represents the return of each stock or asset in the portfolioTotal investment in portfolio = 60000 + 40000 = 100000
Portfolio return = 60000/100000 * 10% + 40000/100000 * 5%
Portfolio return = 8%
The standard deviation of a portfolio containing one risky and one risk-free asset is calculated by multiplying the standard deviation of the risky asset by its weight in the portfolio. So, portfolio standard deviation will be,
Portfolio SD = 60000/100000 * 15%
Portfolio SD = 9%
Almost ___________________ percent of U.S. banks are FDIC members.
a
50
b
99
c
90
d
75
A business that is less profitable than similar businesses, or with lower sales or higher expenses than similar businesses, may have difficulty competing.
True
False
Answer:
True
Explanation:
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $380,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year (all purchases and services were acquired on account):
a. Raw materials purchased for use in production, $275,000.
b. Raw materials requisitioned for use in production (all direct materials), $260,000.
c. Utility bills were incurred, $74,000 (95% related to factory operations, and the remainder related to selling and administrative activities).
d. Salary and wage costs were incurred:
Direct labor (1,100 hours) $305,000
Indirect labor $105,000
Selling and administrative salaries $185,000
e. Maintenance costs were incurred in the factory, $69,000.
f. Advertising costs were incurred, $151,000.
g. Depreciation was recorded for the year, $87,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment).
h. Rental cost incurred on buildings, $112,000 (85% related to factory operations, and the remainder related to selling and administrative facilities).
i. Manufacturing overhead cost was applied to jobs.
j. Cost of goods manufactured for the year, $920,000.
k. Sales for the year (all on account) totaled $1,950,000. These goods cost $950,000 according to their job cost sheets.
The balances in the inventory accounts at the beginning of the year were:
Raw materials $45,000
Work in process $36,000
Finished Goods $75,000
Required:
a. Prepare journal entries to record the above data.
b. Post your entries to T-accounts.
c. Prepare a schedule of cost of goods manufactured.
d. Prepare an income statement for the year.
Answer:
Froya Fabrikker A/S of Bergen, Norway
a. Journal Entries
a. Debit Raw materials $275,000
Credit Accounts payable $275,000
To record purchase of raw materials on account.
b. Debit WIP $260,000
Credit Raw materials $260,000
To record materials requisitioned for production.
c. Debit Manufacturing overhead $70,300
Debit Selling and admin. $3,700
Credit Utilities expense $74,000
To close utilities expenses.
d. Debit WIP $305,000
Debit Manufacturing overhead $105,000
Debit Selling and Admin. $185,000
Credit Payroll Expense $595,000
To close payroll expenses.
e. Debit Manufacturing overhead $69,000
Credit Maintenance expense $69,000
To close maintenance expense.
f. Debit Selling and admin. $151,000
Credit Advertising expense $151,000
To close advertising expense.
g. Debit Manufacturing overhead $69,600
Debit Selling and admin. $17,400
Credit Depreciation expense $87,000
To close depreciation expense.
h. Debit Manufacturing overhead $95,200
Debit Selling and admin $16,800
Credit Rent expense $112,000
To close rent expense.
i. Debit WIP $418,000
Credit Manufacturing overhead applied $418,000
To record manufacturing overhead applied to production at $380 for 1,100 direct labor-hours.
j. Debit Finished goods $920,000
Credit WIP $920,000
To transfer completed goods to finished goods inventory.
k. Debit Accounts receivable $1,950,000
Credit Sales revenue $1,950,000
To record sale of goods on account.
Debit Cost of goods sold $950,000
Credit Finished goods $950,000
To record the cost of goods sold.
b. T-accounts
Raw materials
Account Titles Debit Credit
Beginning balance $45,000
Accounts payable 275,000
Work in Process $260,000
Work in process
Account Titles Debit Credit
Beginning balance $36,000
Raw materials 260,000
Payroll expense 305,000
Manufacturing
overhead applied 418,000
Finished goods inventory $920,000
Finished Goods
Account Titles Debit Credit
Beginning balance $75,000
Work in Process 920,000
Cost of goods sold $950,000
Cost of goods sold
Account Titles Debit Credit
Finished goods $950,000
Accounts Payable
Account Titles Debit Credit
Raw materials $275,000
Manufacturing overhead
Account Titles Debit Credit
Utilities expense $70,300
Payroll expense 105,000
Maintenance exp 69,000
Depreciation exp. 69,600
Rent expense 95,200
Work in Process $418,000
Overhead applied 8,900
Sales Revenue
Account Titles Debit Credit
Accounts receivable $1,950,000
Accounts Receivable
Account Titles Debit Credit
Sales revenue $1950,000
Selling and admin.
Utilities expense $3,700
Payroll expense 185,000
Advertising exp. 151,000
Depreciation exp. 17,400
Rent expense 16,800
Utilities Expense
Manufacturing overhead $70,300
Selling and admin. 3,700
Payroll Expense
Work in Process $305,000
Manufacturing overhead 105,000
Selling and admin. 185,000
Maintenance expense
Manufacturing overhead $69,000
Advertising expense
Selling and admin. $151,000
Depreciation expense
Manufacturing overhead $69,600
Selling and admin. 17,400
Rent expense
Manufacturing overhead $95,200
Selling and admin. 16,800
c. Schedule of Cost of Goods Manufactured:
Beginning WIP $36,000
Raw materials 260,000
Payroll expense 305,000
Manufacturing
overhead applied 418,000
Ending WIP (99,000)
Finished goods $920,000
d. Income Statement for the year ended December 31
Sales Revenue $1,950,000
Cost of goods sold 950,000
Gross profit $1,000,000
Selling and Administrative expenses:
Utilities expense $3,700
Payroll expense 185,000
Advertising exp. 151,000
Depreciation exp. 17,400
Rent expense 16,800 $373,900
Net income $626,100
Explanation:
a) Data and Calculations:
Estimated manufacturing overhead = $380,000
Estimated direct labor-hours = 1,000
Actual direct labor-hours = 1,100
Predetermined overhead rate = $380 ($380,000/1,000)
Analysis of Transactions:
a. Raw materials $275,000 Accounts payable $275,000
b. WIP $260,000 Raw materials $260,000
c. Manufacturing overhead (Utility) $70,300 Selling and admin. $3,700 Utilities expense $74,000
d. WIP (direct labor) $305,000 Manufacturing overhead (indirect labor) $105,000 Selling and Admin. $185,000 Payroll Expense $595,000
e. Manufacturing overhead (maintenance) $69,000 Maintenance expense $69,000
f. Selling and admin. $151,000 Advertising expense $151,000
g. Manufacturing overhead $69,600 Selling and admin. $17,400 Depreciation expense $87,000
h. Manufacturing overhead $95,200 Selling and admin $16,800 Rent $112,000
i. WIP $418,000 Manufacturing overhead applied $418,000 ($380 * 1,100)
j. Finished goods $920,000 WIP $920,000
k. Accounts receivable $1,950,000 Sales revenue $1,950,000
Cost of goods sold $950,000 Finished goods $950,000
Beginning balances:
Raw materials $45,000
Work in process $36,000
Finished Goods $75,000
Presented below is information related to equipment owned by Novak Company at December 31, 2020.
Cost $11,250,000
Accumulated depreciation to date 1,250,000
Expected future net cash flows 8,750,000
Fair value 6,000,000
Assume that Novak will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years.
Required:
Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020.
Answer:
Debit : Impairment loss $1,250,000
Credit : Accumulated impairment loss $1,250,000
Explanation:
Impairment of an asset happens when, the Carrying Amount of an Asset is greater than the Net Realizable Value of an asset.
Carrying Amount is Cost of asset less Accumulated depreciation. Carrying Amount for the equipment is $10,000,000 ($11,250,000 - $1,250,000).
The Net Realizable Value of an asset is the higher of Fair Value of Asset and Future Value. For the equipment the Net Realizable Value is $8,750,000
Then, since Carrying Amount ($10,000,000) > Net Realizable Value ($8,750,000), the equipment is impaired.
Impairment loss will be $1,250,000 ($10,000,000 - $8,750,000).
The journal entry to record the impairment loss would be :
Debit : Impairment loss $1,250,000
Credit : Accumulated impairment loss $1,250,000