Answer:
If the new reforms bring increase confidence of the investors then the company will have to incur lower borrowing costs as the investor will be available and vice versa.
Explanation:
Suppose that previously our company's credit rating was overrated. Due to recent regulatory reforms, my company achieved a lower credit rating and hence the investor confidence in our company dropped significantly. Now the investor is not interested to invest in my company and to urge them to invest in the company, they will be offered higher interest. If the reforms are going to impact our credit rating adversely then the borrowing cost will increase and vice versa.
Furthermore, Core Principle 3 says that the decsion making of the investor is based on the information that is readily available to him. This means if the reforms increase the access of the borrower through improved credit rating then it will be favourable for the company in terms of lower borrowing costs. If the reforms decrease the access of the borrower through depreciating credit rating then it will adversely affect the company in terms of lower borrowing costs and lower investment access.
Below are the transactions for Ute Sewing Shop for March, the first month of operations.
March 1 Issue common stock in exchange for cash of $1,400.
March 3 Purchase sewing equipment by signing a note with the local bank, $1,100.
March 5 Pay rent of $440 for March.
March 7 Martha, a customer, places an order for alterations to several dresses. Ute estimates that the alterations will cost Martha $640. Martha is not required to pay for the alterations until the work is complete.
March 12 Purchase sewing supplies for $114 on account. This material will be used to provide services to customers.
March 15 Ute delivers altered dresses to Martha and receives $640.
March 19 Ute agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Ute receives $540 from Bob and promises the suits to be completed by March 25.
March 25 Ute delivers 10 altered business suits to Bob.
March 30 Pay utilities of $79 for the current period.
March 31 Pay dividends of $70 to stockholders.
1. Record each transaction.
2. Post each transaction to the appropriate T-accounts.
3. Calculate the balance of each account at March 31.
4. Prepare a trial balance as of March 31.
Ute uses the following accounts:
Cash, Supplies, Equipment, Accounts Payable, Deferred Revenue, Notes Payable, Common Stock, Dividends, Service Revenue, Rent Expense, and Utilities Expense.
Answer:
Part 1
March 1
Debit : Cash $1,400
Credit : Common Stock $1,400
March 3
Debit : Equipment $1,100
Credit : Note Payable $1,100
March 5
Debit : Rent Expense $440
Credit : Cash $440
March 7
No Entry
March 12
Debit : Supplies $114
Credit : Accounts Payable $114
March 15
Debit : Cash $640
Credit : Service Revenue $640
March 19
Debit : Cash $540
Credit : Deferred Revenue $540
March 25
Debit : Deferred Revenue $540
Credit : Service Revenue $540
March 30
Debit : Utilities Expense $79
Credit : Cash $79
March 31
Debit : Dividends $70
Credit : Cash $70
Part 2 and Part 3
Cash : Debit = $1,400 + $640 + $540 Credit = $440 + $79 + $70, Balance = 1,991 Debit
Common Stock : Debit = Credit = $1,400 , Balance = 1,400 Credit
Equipment : Debit = $1,100 Credit = , Balance = 1,110 Debit
Note Payable : Debit = Credit = $1,100 , Balance = 1,100 Credit
Rent Expense : Debit = $440 Credit = , Balance = $440 Debit
Supplies : Debit = $114 Credit = , Balance = $144 Debit
Accounts Payable : Debit = Credit = $114 , Balance = $114 Credit
Service Revenue : Debit = Credit = $640 + $540 , Balance = $1,180 Credit
Deferred Revenue : Debit = $540 Credit = $540 , Balance = $ 0
Utilities Expense : Debit = $79 Credit = , Balance = $79 Debit
Dividends : Debit = $70 Credit = , Balance = $70 Debit
Part 4
Sewing Shop
Trial balance as at March 31
Debit Credit
Cash $ 1,991
Common Stock $1,400
Equipment $1,110
Note Payable $1,100
Rent Expense $440
Supplies $144
Accounts Payable $114
Service Revenue $1,180
Deferred Revenue $ 0 $0
Utilities Expense $79
Dividends $70
Totals $3,864 $3,864
Explanation:
To successfully tackle the question, follow the steps :
Record journal entriesPost the Journals to Ledger Accounts Find the Ledger Account BalancesPrepare a Trial BalanceThe Trial Balance is used to check mathematical accuracy. It is a list of Debit and Credit extracted from Balances from the Ledger Accounts.
Tommy's parents died in a plane crash and he went to live with his guardian, Aunt Rose. Rose had a very small house and did not have a separate bedroom and bath for 12-year-old Tommy. She and Tommy decided to use some of his inheritance to pay for an addition to the house. He had some shares of stock transferred into Rose's name so that she could sell them when the money was due to be paid. The stock transfers are:
Answer:
presumed voidable unless Rose can show no unfair advantage was taken.
Explanation:
In the given scenario Tommy had some shares of stock transferred into Rose's name so that she could sell them when the money was due to be paid for the addition to the house.
However Tommy is a minor living with his guardian Aunt Rose.
She may have an unfair influence over him that will force him to make the share transfers.
Considering this the transfer of shares can be viewed as voidable until she proves she did not use the unfair advantage of being a guardian to push the transaction through
A company's income statement showed the following: net income, $130,000; depreciation expense, $38,000; and gain on sale of plant assets, $12,000. An examination of the company's current assets and current liabilities showed the following changes accounts receivable decreased $11,000; merchandise inventory increased $26,000; prepaid expenses increased $7,800; accounts payable increased $5,000. Calculate the net cash provided or used by operating activities.
Answer:
$138,200
Explanation:
Calculation the net cash provided or used by operating activities.
Net income $130,000
Depreciation $38,000
Gain on sale long-term asset ($12,000)
Account Receivable decreased $11,000
Inventory Increased ($26,000)
Prepaid Expenses Increased ($7,800)
Account Payable Increased $5,000
Net cash provided by operating activities $138,200
Therefore net cash provided or used by operating activities is $138,200
Waterway Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. WATERWAY RESORT TRIAL BALANCE AUGUST 31, 2020 Debit Credit Cash $25,300 Prepaid Insurance 10,200 Supplies 8,300 Land 28,000 Buildings 128,000 Equipment 24,000 Accounts Payable $10,200 Unearned Rent Revenue 10,300 Mortgage Payable 68,000 Common Stock 104,700 Retained Earnings 9,000 Dividends 5,000 Rent Revenue 84,200 Salaries and Wages Expense 44,800 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 $286,400 $286,400 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020. 2. An inventory count on August 31 shows $445 of supplies on hand. 3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $4,172 was earned prior to August 31. 5. Salaries of $365 were unpaid at August 31. 6. Rentals of $843 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year.
Question Completion:
Journalize the adjusting entries for the three months of 2020.
Answer:
Waterway Resort
Adjusting Journal Entries:
No. Date Account Titles and Explanation Debit Credit
1. Aug. 31 Insurance Expense $2,550
Prepaid Insurance $2,550
To record insurance expense for the three months' period.
2. Aug. 31 Supplies Expense $7,855
Supplies $7,855
To record supplies expense for the three months' period.
3. Aug. 31 Depreciation Expense - Building $1,280
Accumulated Depreciation - Building $1,280
To record depreciation expense for the three months' period.
3. Aug. 31 Depreciation Expense-Equipment $540
Accumulated Depreciation - Equipment $540
To record depreciation expense for the three months' period.
4. Aug. 31 Unearned Rent Revenue $4,172
Rent Revenue $4,172
To record rent revenue earned.
5. Aug. 31 Salaries Expense $365
Salaries Payable $365
To record accrued salaries expense.
6. Aug. 31 Accounts Receivable $843
Rent Revenue $843
To record accounts receivable due.
7. Aug. 31 Interest Expense $1,360
Interest Payable $1,360
To record mortgage interest expense.
Explanation:
a) Data and Calculations:
WATERWAY RESORT TRIAL BALANCE AUGUST 31, 2020
Debit Credit
Cash $25,300
Prepaid Insurance 10,200
Supplies 8,300
Land 28,000
Buildings 128,000
Equipment 24,000
Accounts Payable $10,200
Unearned Rent Revenue 10,300
Mortgage Payable 68,000
Common Stock 104,700
Retained Earnings 9,000
Dividends 5,000
Rent Revenue 84,200
Salaries and Wages Expense 44,800
Utilities Expenses 9,200
Maintenance and Repairs Expense 3,600
Totals $286,400 $286,400
b) Adjusting transactions:
1. Insurance Expense $2,550 Prepaid Insurance $2,550 ($10,200 * 3/12)
2. Supplies Expense $7,855 Supplies $7,855 ($8,300 - $445)
3. Depreciation Expense - Building $1,280 Accumulated Depreciation - Building $1,280 ($128,000 * 4% * 3/12)
3. Depreciation Expense - Equipment $540 Accumulated Depreciation - Equipment $540 ($24,000 -$2,400 * 10% * 3/12)
4. Unearned Rent Revenue $4,172 Rent Revenue $4,172
5. Salaries Expense $365 Salaries Payable $365
6. Accounts Receivable $843 Rent Revenue $843
7. Interest Expense $1,360 Interest Payable $1,360 ($68,000 * 8% * 3/12)
define regulation economics.
Answer and Explanation:
Regulatory economics is the economics of regulation. It is the application of the law by government or independent administrative agencies for various purposes, including remedying market failure, protecting the environment, and economic management
Answer:
regulation economics is the economics of regulation. It is the application of the law by government or independent administrative agencies for various purposes
A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $3,979. After installation the solar water heater will produce a small amount of hot water every day, forever, and will require no maintenance. How much must the homeowner save on water heating costs every year if this is to be a sound investment
Answer:
$198.95
Explanation:
Calculation for How much must the homeowner save on water heating costs every year if this is to be a sound investment
Using this formula
Saving =Cost *Interest rate
Let plug in the formula
Savings=3,979*5%
Savings=$198.95
Therefore How much must the homeowner save on water heating costs every year if this is to be a sound investment is $198.95
A good leader should have a positive outlook. Please select the best answer from the choices provided OT F
Answer:
true
Explanation:
if your leader dont have postivie outlook it will spread to the others
Answer:
true
Explanation:
ABC Incorporated has operating income before interest and taxes in 2020 of $199.2 million. The firm is expected to generate this level of operating income indefinitely. The firm had depreciation expense of 10 million that same year. Capital spending totaled 20 million during 2020. At the end of 2019 and 2020, working capital totaled 70 and 80 million, respectively. The firm's combined marginal state, local, and federal tax rate was 30% and its debt outstanding had a market value of 1.2 billion. The 10 year Treasury bond rate is 2% and the borrowing rate for companies exhibiting levels of creditworthiness similar to ABC is 5%. The historical risk premium for stocks over the risk free rate of return is 5.5%. ABC's beta was estimated to be 1.0. The firm has 2,500,000 common shares outstanding at the end of 2020. ABC's target debt to total capital ratio is 30%.
1. The free cash flow to the firm in 2020 (in million).
2. The WACC is (in percentage).
3. The firm value is million.
Answer and Explanation:
The computation is shown below:
1. Free cash flow
= EBIT × (1 - tax rate) + depreciation expense - capital expenditure - change in net working capital
= $199.2 × (1 - 0.30) + $10 - $20 - ($80 - $70)
= $119.44
2. The WACC is
But before that following calculations need to be done
Cost of equity = (2 + 1 × 5.5)
= 7.50%
The cost of debt is 5%
The debt to total capital ratio is 30%
The equity to total capital ratio is (100 - 0.30) = 0.70
Tax rate is 30%
Now
WACC is
= (7.5 × 0.7 + 5 × 0.3 × (1 - 0.3))
= 6.30%
3. The firm value is
= $119.44 ÷ 0.063
= $1,895.87 million
Saginaw Inc. completed its first year of operations with a pretax loss of $692,500. The tax return showed a net operating loss of $884,500, which the company will carry forward. The $192,000 book–tax difference results from excess tax depreciation over book depreciation. Management has determined that it should record a valuation allowance equal to the net deferred tax asset. Assuming the current tax expense is zero, prepare the journal entries to record the deferred tax provision and the valuation allowance. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Missing word "Tax rate is 34 percent"
Date Particulars Debit Credit
Deferred tax asset (884,500*34%) $300,730
Deferred tax benefit $300,730
(To record the deferred tax consequences of the current year NOL)
Deferred tax asset (192,000*34%) $65,280
Deferred tax benefit $65,280
(To record the deferred tax consequences of the depreciation)
Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,400 units. The costs and percentage completion of these units in beginning inventory were:
Cost Percent Complete
Materials costs $6,700 65%
Conversion costs $7,800 45%
A total of 8,500 units were started and 6,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Cost
Materials costs $126,500
Conversion costs $208,000
The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for conversion costs for the first department for the month is closest to:_____.
a. $18.42.
b. $19.02.
c. $19.91.
d. $17.60.
Answer: $27.14
Explanation:
First find the ending inventory:
= Beginning inventory + Units started - units transferred
= 1,400 + 8,500 - 6,900
= 3,000 units
Conversion EUP = Units transferred + (50% * ending inventory)
= 6,900 + (35% * 3,000)
= 7,950 units
Conversion cost per EUP:
= (Beginning conversion cost + month conversion cost) / EUP
= (7,800 + 208,000) / 7,950
= $27.14
The options are probably for another variant of this question.
The following accounts were taken from the financial statements of Lee Company. Match each of the accounts to its proper balance sheet classification. If the item would not appear on a balance sheet, use "Not Applicable." Accounts Balance Sheet Classification Interest revenue select a balance sheet classification Utilities payable select a balance sheet classification Accounts payable select a balance sheet classification Supplies select a balance sheet classification Bonds payable select a balance sheet classification Goodwill select a balance sheet classification Common stock select a balance sheet classification Accumulated depreciation—equipment select a balance sheet classification Equipment select a balance sheet classification Salaries and wages expense select a balance sheet classification Debt investments (long-term) select a balance sheet classification Unearned rent revenue
Answer and Explanation:
The classification is shown below:
Interest revenue = Not applicable
Utilities payable = Current liabilities
Accounts payable = Current liabilities
Supplies = Current assets
Bonds payable = Long term liabilities
Goodwill = Intangible assets
Owner's capital = Owner's equity
Accumulated depreciation = Equipment Property,plant and equipment (Contra)
Equipment = Property,plant and equipment
Salaries and wages expense = Not applicable
Debt investment (long term) = Long term investment
Unearned rent revenue = Current liabilities
in the united states ,dollar bills, , and dimes are representative money
Answer:
In the United States, dollar bills, nickels, and dimes are Representative money It can be exchanged for a valuable good, was used in systems involved a "gold standard", and can be traded for a commodity such as silver.
Let X be the damage incurred (in $) in a certain type of accident during a given year. Possible X values are 0, 1,000, 5,000, and 10,000, with probabilities 0.84, 0.09, 0.05, and 0.02, respectively. A particular company offers a $500 deductible policy. If the company wishes its expected profit to be $100, what premium amount should it charge (in dollars)
Answer:
$560
Explanation:
Calculation for what premium amount should it charge
Using this formula to calculate the premium amount
E(Y)=yxP(y)
Let X variable represent the damage that occured because of accident in the year provided
Based on the information given since the amount deductible is $500 while the expected premium charge is $100 then let defined the premium function as,
For X=0
Hence,
Y=X+$100
For X=1,000, 5,000, and 10,000
Y=X-$500+$100
Y=$400
Let the table below represents probability distribution of y
X= 0, 1,000, 5,000, 10,000
Y= 100 600 4,600 9,600
P(y)=0.84, 0.09, 0.05, 0.02,
(1000-400=600)
(5000-400=4,600)
(10,000-400=9,600)
Now let calculate the PREMIUM AMOUNT to be charge Using this formula
E(Y)=yxP(y)
Let plug in the formula
E(Y)=(100 × 0.84)+( 600 × 0.09) + (4,600 × 0.05) +( 9,600 × 0.02)
E(Y)=84+54+230+192
E(Y)=$560
Therefore the premium amount that it should it charge (in dollars) is $560
A lottery has a grand prize of $320,000, four runner-up prizes of $32,000 each, twelve third-place prizes of $8000 each, and twenty-five consolation prizes of $800 each. If 1,600,000 tickets are sold for $1 each and the probability of any one ticket winning is the same as that of any other ticket winning, find the expected return on a $1 ticket. (Round your answer to two decimal places.)
Answer: -$0.65
Explanation:
Probability of winning the $320,000 = 1 / 1,600,000
Probability of winning the $32,000 = 4 / 1,600,000
Probability of winning the $8,000 = 12 / 1,600,000
Probability of winning the $800 = 25 / 1,600,000
Probability of losing your $1 = (1,600,000 - 25 - 12 - 4 - 1) / 1,600,000 = 1,599,958 / 1,600,000
Expected return = (1 * 320,000/1,600,000) + (4 * 32,000/1,600,000) + (12 * 8,000/1,600,000) + (25 * 800/ 1,600,000) - (1,599,958 * 1 / 1,600,000)
= -0.64747375
= -$0.65
Riverton Corp., which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at $15 per unit
Production costs: Variable: $4 per unit
Fixed: $260,000
Selling and administrative costs:
Variable: $1 per unit
Fixed: $32,000 The contribution margin that the company would disclose on a variable-costing income statement is:________.
a. None of the answers is correct.
b. $166,500.
c. $97,500.
d. $370,000.
e. $147,000.
Answer:
B. $166,500
Explanation:
Given the above information, we'll calculate fixed cost per unit.
Fixed cost per unit
= $260,000 ÷ 40,000 units
= $6.5 per unit
Then,
Sales per units
= Variable cost per unit - Fixed costs per units
= $15 - $4 - $6.5
= $4.5
Contribution margin
= $4.5 × 37,000
= $166,500
why do you think the government should regulate advertising
Answer:
Advertising control prevents businesses from presenting false information, placing billboards in illegal locations and other prohibited actions. If a business does not follow the advertising regulations set by the government, it could face a civil suit.
Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 Factory 2 Estimated factory overhead cost for fiscal year beginning August 1 $1,516,700 $1,074,600 Estimated direct labor hours for year 29,850 Estimated machine hours for year 52,300 Actual factory overhead costs for August $124,880 $98,910 Actual direct labor hours for August 2,700 Actual machine hours for August 4,350 Required: a. Determine the factory overhead rate for Factory 1. b. Determine the factory overhead rate for Factory 2. c. Journalize the Aug. 31 entries to apply factory overhead to production in each factory. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. d. Determine the balances of the factory overhead accounts for each factory as of August 31, and indicate whether the amounts represent
Answer and Explanation:
The computation is shown below:
a. Factory overhead rate for Factory 1 is
= Estimated factory overhead cost ÷ Estimated machine hours for the year
= $1,516,700 ÷ 52,300
= $29
b. Factory overhead rate for Factory 2 is
= Estimated factory overhead cost ÷ Estimated direct labor hours for the year
= $1,074,600 ÷ 29,850
= $36
c. The journal entry is shown below:-
1. Work in process Dr, $126,150 (4,350 × $29)
To Factory overhead $126,150
(To record the factory overhead)
2. Work in process Dr, $97,200 (2700 × $36)
To Factory overhead $97,200
(To record the factory overhead)
d. The balance of the factory overhead amounts for each factory as follows:
For Factory 1
= $124,880 - $126,150
= $1,270 Credit Overapplied
For Factory 2
= $98,910 - $97,200
= $1,710 Debit Underapplied
define securitization.
Carlin and Marley, an accounting firm, provides consulting and tax planning services. For many years, the firm's total administrative cost (currently $270,000) has been allocated to services on this basis of billable hours to clients. A recent analysis found that 55% of the firm's billable hours to clients resulted from tax planning services, while 45% resulted from consulting services. The firm, contemplating a change to activity-based costing, has identified three components of administrative cost, as follows: Staff Support$200,000 In-house computing charges 50,000 Miscellaneous office costs 20,000 Total$270,000 A recent analysis of staff support found a strong correlation with the number of clients served. In contrast, in-house computing and miscellaneous office cost varied directly with the number of computer hours logged and number of client transactions, respectively. Consulting clients served totaled 35% of the total client base, consumed 30% of the firm's computer hours, and accounted for 20% of the total client transactions. If Carlin and Marley switched from its current accounting method to an activity-based costing system, the amount of administrative cost chargeable to consulting services would:
Answer:
Carlin and Marley
Using activity-based costing system, the amount of administrative cost chargeable to consulting services would be:
= $89,000
instead of $121,500 using the traditional method.
Explanation:
a) Data and Calculations:
Services provided by the accounting firm = consulting and tax planning
Total administrative cost = $270,000
Traditional allocation basis = billable hours to clients
Services Tax Planning Consulting Total
Traditional cost pool basis:
Billable hours to clients 55% 45% 100%
Activity cost pool bases:
Client base 65% 35% 100%
Computer hours 70% 30% 100%
Total client transactions 80% 20% 100%
Activity Pools Overhead Costs Activity Basis
Staff Support $200,000 Number of clients served
In-house computing charges 50,000 Number of computer hours
Miscellaneous office costs 20,000 Number of client transactions
Total administrative cost = $270,000
Overhead Allocation for each Activity Cost Pool:
Services Total Tax Planning Consulting
Staff Support $200,000 $130,000 $70,000
In-house computing charges 50,000 35,000 15,000
Miscellaneous office costs 20,000 16,000 4,000
Total administrative cost = $270,000 $181,000 $89,000
Traditional costing method:
Billable hours to clients 100% 55% 45%
Amount based on billable hours $270,000 $148,500 $121,500
Assume that the CBL is not marketable at split-off but must be planed and sized at a cost of $300,000 per production run. During this process, 10,000 units are unavoidably lost and have no value. The remaining units of CBL are salable at $14 per unit. The RBL, although salable immediately at the split-off point, is coated with a tarlike preservative that costs $200,000 per production run. The RBL is then sold for $12 each. Using the net realizable value basis, how much of the completion costs should be assigned to each unit of CBL
Question
Northwest Building Products (NBP) manufactures two lumber products from a joint milling process: residential building lumber (RBL) and commercial building lumber (CBL). A standard production run incurs joint costs of $350,000 and results in 100,000 units of RBL and 90,000 units of CBL. Each RBL sells for $13 per unit and each CBL sells for $13 per unit.
Assume that the CBL is not marketable at split-off but must be planed and sized at a cost of $300,000 per production run. During this process, 10,000 units are unavoidably lost and have no value. The remaining units of CBL are salable at $14 per unit. The RBL, although salable immediately at the split-off point, is coated with a tarlike preservative that costs $200,000 per production run. The RBL is then sold for $12 each. Using the net realizable value basis, how much of the completion costs should be assigned to each unit of CBL
Answer:
Completion cost per unit of CBL=$5.82
Explanation:
Joint cost is the total cost incurred from the start of start of production process up until the split off point where two or more products result from the same process. The joint products in this case are CBL and RBL
The completion cost of CBL is the sum of the apportioned joint cost at the split-off point plus the further processing cost
Completion cost = apportioned joint cost + further processing cost
Joint cost can be apportioned using the net realizable value as follows
Total net realizable value at the split of point for the two product=
RBL =$13 × 100,000=1,300,000
CBL =$13 × 90,000=1,170,000
Total 2,470,000
Apportioned joint cost to CBL = sales value of CBL/Total sales of product× joint cost
= (1,170,000/2,470,000)*$350,000= 165,789.47
Completion cost = 165,789.47 + 300,000 = $465,789.47
Completion cost per unit of CBL = Completion cost/Expected unit
=$465,789.47/(90,000-10,000) units
=$5.82
Note that the expected units is that available for sale after normal loss as be accounted for. So, we deduct the loss units
Completion cost per unit of CBL=$5.82
what the role of marketing
Answer:
The Marketing Department plays a vital role in promoting the business and mission of an organization. It serves as the face of your company, coordinating and producing all materials representing the business.
Explanation:
hope this helps and I want brainless
An all-equity firm is considering the following projects:
Project Beta IRR
W .67 9.5 %
X .74 10.6
Y 1.37 14.1
Z 1.48 17.1
The T-bill rate is 5.1 percent, and the expected return on the market is 12.1 percent.
a. Compared with the firm's 12.1 percent cost of capital, Project W has a lower expected return, Project X has a lower expected return, Project Y has a higher expected return, and Project Z has a higher expected return.
b. Project W should be rejected , Project X should be accepted , Project Y should be rejected , and Project Z should be accepted .
Answer:
Projects W and X have lower expected returns
Projects Y and Z have higher expected returns
Explanation:
Given
[tex]\begin{array}{ccc}{Project} & {Beta} & {IRR} & {W} & {.67} & {9.5\%} & {X} & {.74} & {10.6\%} & {Y} & {1.37} & {14.1\%}& {Z} & {1.48} & {17.1\%} \ \end{array}[/tex]
[tex]T\ Bill\ Rate = 5.1\%[/tex]
[tex]Expected\ Return = 12.1\%[/tex]
Solving (a): Compare the expected return of each project to 12.1%
Expected Return of each project is calculated as:
[tex]Project = T\ Bill + (Beta * (Expected\ Return - T\ Bill))[/tex]
[tex]Project = 5.1\% + (Beta * (12.1\% - 5.1\%))[/tex]
[tex]Project = 5.1\% + (Beta * 7.0\%)[/tex]
For Project W:
[tex]W= 5.1\% + (0.67* 7.0\%)[/tex]
[tex]W= 5.1\% + 4.69\%[/tex]
[tex]W= 9.79\%[/tex]
Lower Expected return
For Project X:
[tex]X = 5.1\% + (0.74 * 7.0\%)[/tex]
[tex]X = 5.1\% + 5.18\%[/tex]
[tex]X = 10.28\%[/tex]
Lower Expected return
For Project Y:
[tex]Y = 5.1\% + (1.37 * 7.0\%)[/tex]
[tex]Y = 5.1\% + 9.59\%[/tex]
[tex]Y = 14.69\%[/tex]
Higher Expected return
For Project Z:
[tex]Z = 5.1\% + (1.48 * 7.0\%)[/tex]
[tex]Z = 5.1\% + 10.36\%[/tex]
[tex]Z = 15.46\%[/tex]
Higher Expected return
There is no question in (b)
LaBelle Corporation owns a $6 million whole life insurance policy on the life of its CEO, naming LaBelle as beneficiary. The annual premiums are $95,000 and are payable at the beginning of each year. The cash surrender value of the policy was $56,000 at the beginning of 2021. Required: 1. Prepare the appropriate 2021 journal entry to record insurance expense and the increase in the investment, assuming the cash surrender value of the policy increased according to the contract to $70,000. 2. The CEO died at the end of 2021. Prepare the appropriate journal entry.
Answer:
1. Dr Cash surrender 14,000
Dr Insurance exp 81,000
Cr Cash 95,000
2. Dr Cash 6,000,000
Cr Cash surrender 70,000
Cr Gain on life 5,930,000
Explanation:
1. Preparation of the appropriate 2021 journal entry to record insurance expense and the increase in the investment
Dr Cash surrender 14,000
(70,000-56,000)
Dr Insurance exp 81,000
(95,000-14,000)
Cr Cash 95,000
2. Preparation of the appropriate journal entry if The CEO died at the end of 2021.
Dr Cash 6,000,000
Cr Cash surrender 70,000
Cr Gain on life 5,930,000
(6,000,000-70,000)
Prepare journal entries to record the following transactions and events that occurred in Marilyn County during calendar year 2019:
1. The legislature adopted the following budget:
Estimated revenues and other sources:
Property taxes $1,740,000
Sales taxes 1,000,000
Use of fund balance 10,000
Total $2,750,000
Appropriations:
General government—
Salaries $ 420,000
General government—supplies 30,000
Parks department—salaries 2,000,000
Parks department—plants and supplies 300,000
Total $2,750,000
2. The Parks department placed PO 2019-1 for shrubbery in the amount of $52,000 and PO 2019-2 for gardening supplies in the amount of $11,000. The orders were charged to the appropriation for Parks department—plants and supplies.
3. The supplier delivered the shrubbery ordered on PO 2019-1; however, the supplier said he could not deliver some of the shrubs because he no longer carried them. The invoice for $49,000 was approved and forwarded to the comptroller’s office for payment; the rest of the order ($3,000) was cancelled.
4. The supplier delivered the gardening supplies ordered on PO 2019-2. She sent an invoice for $11,200 because some of the items were of a higher quality than ordered. The Parks department accepted the entire delivery and forwarded the invoice for payment.
5. Based on a mid-year review of economy, the finance director concluded that sales tax revenues would be less than the original estimate. As a result, the legislature amended the budget, reducing the sales tax estimate by $50,000 and the Parks department—plants and supplies appropriation by $35,000
Answer:
Shrubbery Expense (Dr.) $52,000
Gardening Supplies (Dr.) $11,000
Accounts Payable (Cr.) 63,000
Accounts Payable (Dr.) $3,000
Cancelled Order for Shrubbery (Cr.) $3,000
Gardening Supplies (Dr.) $200
Accounts Payable (Cr.) $200
Explanation:
Marilyn County has estimated the expense and raised PO for the park development. The park supplies and shrubbery expense are recorded on the estimated amount. The invoice received is for differential amount and the expense is recorded for the revised amount.
Following are the journal entries to the given points:
For reverse entanglements for order PO 2019-1, reverse the entry in section two (i.e., debit the budgetary fund balance and credit the encumbrances-park department plants and equipment account with the original order amount of $52,000).The order PO 2019-1 expense of $49,000 will be documented by debiting the Expenditures-Parks department plants and supplies account and crediting the vouchers payable account.For reverse impediments on order PO 2019-2, reverse the entry in section 2 (i.e., debit the budgetary cash position & credit the encumbrances-park department plants and supplies account with the initial invoice value of $11,000).An order PO 2019-2 expense of $11,200 will just be recorded by debiting the Expenditures-Parks department plants or supplies account and crediting the vouchers payable account.Sale tax money is reduced by $50,000 in the revised budget, as are funds for parks department plants and supplies by $35,000 in the revised budget. The budgetary fund balance will indeed be reduced by $15,000. (In other words, $50,000–$35,000).Please find the journal entries in the attachment file.Learn more:
brainly.com/question/12264018
What was A contract between the government and a private producer.
Answer:
government contract
Explanation:
Which of the following social media influencing tactics can be described as getting someone to do or buy something because others are also doing it?
A.
Aspirational buying
B.
Bandwagon appeal
C.
Flattery
D.
Juxtaposition
Answer:
B. bandwagon appeal
Explanation:
All of Ameliorate Inc.'s sales are on account. 60% of the credit sales are collected in the month of sale, 30% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company: January February March April Total sales $700,000 $500,000 $400,000 $600,000 Cash receipts in April are expected to be:
Answer:
Total cash collection= $530,000
Explanation:
Giving the following information:
Sales:
February $500,000
March $400,000
April $600,000
60% of the credit sales are collected in the month of sale, 30% in the month following sale, and 10% in the second month following the sale.
Cash collection April:
Cash collection credit sales from April= (600,000*0.6)= 360,000
Cash collection credit sales from March= (400,000*0.3)= 120,000
Cash collection credit sales from February= (500,000*0.1)= 50,000
Total cash collection= $530,000
The cash receipts in April should be $530,000.
Calculation of the cash receipts:
= Cash collection from April + cash collection from march + cash collection from february
= (60% of $600,000) + (30% of $400,000) + (10% of $500,000)
= $360,000 + $120.000 + $50,000
= $530,000
hence, The cash receipts in April should be $530,000.
Learn more about cash here: https://brainly.com/question/24168236
Karim Corp. requires a minimum $8,100 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,500 and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.
July August September
Cash receipts $ 24,100 $ 32,100 $ 40,100
Cash payments 28,150 30,100 32,100
Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)
KARIM CORP.
Cash Budget
For July, August, and September
July August September
Beginning cash balance $8,500
Cash receipts 24,100
Total cash available 32,600
Cash payments
Interest revenue
Preliminary cash balance
Additional loan (loan repayment)
Ending cash balance
Loan balance
Loan balance - Beginning of month $0
Additional loan (loan repayment)
Loan balance - End of month
Answer:
a. Ending Cash Balance are as follow:
July = $8,100
August = $8,100
September = $14,343
b. Loan Balance End of Month are as follows:
July = $3,650
August = $1,723
September = $0
Explanation:
Note: See the attached excel file for the cash budget.
In the attached excel file, the following calculations are made:
July Additional loan = Minimum required cash balance - July Preliminary cash balance = $8,100 - $4,450 = $3,650
August Loan repayment = August Preliminary cash balance - Minimum required cash balance = $10,027 - $8,100 = $1,927
September Loan repayment = Loan Balance End of Month at the beginning of September = $1,723
A small business company is considering updating the current production line. There are two plans. For plan A, the fixed cost will be $40,000 and the variable cost will be $27 per unit after the update. For plan B, the fixed costs will be $54,000 and the variable cost will be $26 per unit after the update. Please answer the following questions: (a) Suppose the selling price is $35, what is the break-even volume for each plan
Answer:
Results are below.
Explanation:
Giving the following information:
Plan A:
Fixed costs= $40,000
Unitary varaible cost= $27
Plan B:
Fixed costs= $54,000
Unitary varaible cost= $26
Selling price per unit= $35
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Plan A:
Break-even point in units= 40,000 / (35 - 27)
Break-even point in units= 5,000
Plan B:
Break-even point in units= 54,000 / (35 - 26)
Break-even point in units= 6,000
Creating a Business Plan: Why is the section on key personnel so important?
Answer:
D- Investors invest in people even more than ideas.
Explanation:
Took the quiZ