Swifty Corporation gathered the following reconciling information in preparing its October bank reconciliation: Cash balance per books, 10/31 $12800 Deposits in transit 500 Notes receivable and interest collected by bank 2600 Bank charge for check printing 60 Outstanding checks 6100 NSF check 520 The adjusted cash balance per books on October 31 is
Answers
Answer:
See photo. I show how to balance but your format may be different. Hopefully you can use this info to fill out the format you learn in school.
Explanation:
Related Questions
On December 31, 2021 Sun Devils Company has outstanding bonds payable with a face value of $700,000, discount on bonds payable of $60,000, and interest payable of $15,000. The bonds mature on January 1, 2025, and interest is payable on a semi-annual basis. What amounts will be reported in the current liabilities section and long-term liabilities section of the balance sheet for these bonds
Answers
Answer:
current liabilities = $75,000
long-term liabilities = $700,000
Explanation:
Current liabilities includes a company`s obligation due for payment within a period of 12 months and long-term liabilities are company's obligation due for payment for period exceeding 12 months.
you observe thundering herd common stoc k selling for $40.00 per share. the next dividen is ecoected to be $2.00, and is expected to grow at a 4% annual rate forever. If your requir4ed rate of return is 12%, you should purchase the stock? A. Yes, because the presemt value of the expected future cash flows is greater than $40 g
Answers
Answer:
no, because the present value of the expected future cash flows is less than $40
Explanation:
The computation of the share price present value is given below:
= Next dividend ÷ (Required rate of return - growth rate)
= $2 ÷ (12% - 4%)
= $25
As we can see that the share price present value would be $25 but the stock selling price is $40 so the present value would be lower than $40 that means the stock should not be purchased
In 1993, Sheffield Company completed the construction of a building at a cost of $2,340,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $69,600 at the end of that time.
Early in 2004, an addition to the building was constructed at a cost of $585,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $23,400.
In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.
Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places)
Annual depreciation expense—building ___________
Answers
Answer:
Annual depreciation expense is $23,547
Explanation:
In the year 2022 the cost of the building will be written down value.
Using straight line depreciation method : (Cost - Salvage value ) / Useful life
Depreciation in 1994 = ( 2,340,000 - 69,600 ) / 40 years = 56,760
There is addition construction in year 2004 the carrying value of the building will be :
2,340,000 - ( 56,760 * 20 ) = 1,204,800
Depreciation in 2004 : ( 1,204,800 + 585,000 ) - 23,400 / 30 years = 58,880
Carrying value on 2022 :
1,789,800 - ( 58,880 * 18 years) = 729,960
Depreciation expense in 2022:
729,960 / 31years = $23,547
The supply of aged cheddar cheese is inelastic, and the supply of flour is elastic. Both goods are considered to be normal goods by a majority of consumers. Suppose that a large income tax increase decreases the demand for both goods by 10 percent. The change in equilibrium quantity will be:________
a. greater in the aged cheddar cheese market than in the flour market.
b. greater in the flour market than in the aged cheddar cheese market.
c. the same in the aged cheddar cheese and flour markets.
d. unknown without more information.
Answers
is an unlevered firm with a total market value of $3,900,000 with 60,000 shares of stock outstanding. The firm has expected EBIT of $220,000 if the economy is normal and $280,000 if the economy booms. The firm is considering a $975,000 bond issue with an attached interest rate of 6 percent. The bond proceeds will be used to repurchase shares. Ignore taxes. What will the earnings per share be after the repurchase if the economy booms
Answers
Answer:
Earnings per share= $3.58
Explanation:
Earnings per share(EPS) = Earnings attributable to share/Number of shares
Price per share = $3,900,000/60,000=$65 per share
The units of shares to be re-purchased with debt proceed
= The proceeds from debt/share price
=$975,000/$65= 15,000
The number of shares outstanding after repurchased = 60,000-15,000= 45,000 units
EBIT 220,000
Less interest (6%×975,000) (58,500)
Earnings attributable to shares 151,500
Earnings per share 151,500/45,000 units=$3.58
Earnings per share= $3.58
) when originally issued, an investment in bonds of Flushing Dough, Inc., promised to provide an annual coupon of 7.50%. The bonds have 4 years until maturity, a market price of $735, and are expected to pay all coupon on time. At maturity, however, the bonds are only forecasted to pay 84% of their par value. What is the likely yield to maturity on the bonds
Answers
Answer:
The likely yield to maturity on the bonds is 10.23%.
Explanation:
The likely yield to maturity on the bonds can be calculated using the following RATE function in Excel:
YTM = RATE(nper,pmt,-pv,fv) .............(1)
Where;
YTM = likely yield to maturity on the bonds = ?
nper = number of periods = number of years until maturity = 4
pmt = annual coupon payment = annual coupon rate * Face value = 7.50% * $1,000 = $75 = 75
pv = present value = market price = $735 = 735
fv = face value or par value of the bond = 1000
Substituting the values into equation (1), we have:
YTM = RATE(40,75,-735,1000) ............ (2)
Inputting =RATE(40,75,-735,1000) into a cell in an excel (Note: as done in the attached excel file), the YTM is obtained as 10.23%.
Therefore, the likely yield to maturity on the bonds is 10.23%.
Suppose that an initial $20 billion increase in investment spending expands GDP by $20 billion in the first round of the multiplier process. Also assume that GDP and consumption both rise by $18 billion in the second round of the process. Instructions: Round your answers to 1 decimal place. a. What is the MPC in this economy
Answers
Answer: 0.9
Explanation:
The marginal propensity to consume (MPC) is calculated by using the formula:
= Change in consumption / Change in income
where,
Change in consumption = $18 billion
Change in income = $20 billion
MPC = Change in consumption / Change in income
= $18 billion / $20 billion
= 0.9
Therefore, MPC is 0.9.
Match the terms with their corresponding descriptions.
a. Firms' costs associated with changing their prices
b. When workers respond, not to the purchasing power of their wage, but to the face value of their wage or salary
c. An event that changes the existing productivity and therefore changes the extent to which economic growth occurs
d. Given flexible prices and the existing factors of production, a measure of how much the economy grows
e. Variations in the growth rate from the long-run rate of economic growth real shock business fluctuations
1. Menu Cost
2. Transaction
3. Real
4. Natural Rate of Unemployment
5. Nominal Wage
6. Business Fluctuations
7. Slow Growth Rate
8. Purchasing power Discrepancies
Answers
Answer:
a. Menu cost.
b. Nominal wage of confusion.
c. Real shock.
d. Solow Growth Rate
e. Business Fluctuations.
Explanation:
a. Menu cost: Firms' costs associated with changing their prices.
b. Nominal wage of confusion: When workers respond, not to the purchasing power of their wage, but to the face value of their wage or salary.
c. Real shock: An event that changes the existing productivity and therefore changes the extent to which economic growth occurs.
d. Solow Growth Rate: Given flexible prices and the existing factors of production, a measure of how much the economy grows.
The Solow Growth Model, developed by Robert Solow, a Nobel Prize winning economist. It was the first neoclassical growth model which was was built upon the Keynesian Harrod-Domar model. The modern theory of economic growth is given by the Solow Model.
The equation below gives us the change in capital stock per worker with population growth at rate n;
Δk = sf(k) – (δ + n)k.
Where k: capital stock per worker in period t
s: savings rate
δ: rate of depreciation of capital
n: labor or number of workers
sf(k): savings per capita multiplied by a fraction of income saved.
e. Business Fluctuations: Variations in the growth rate from the long-run rate of economic growth real shock business fluctuations.
if a bond with a $1,000 par value, 20 years to maturity, and a coupon interest rate of 10% was selling for $1100, then the yield to maturity on that bond is: A. is less than 10% B. is greater than 10% C. is 10% D. cannot be determined g
Answers
Answer:
a
Explanation:
the yield to maturity of a bond is the total return on a bond if the bond is held to maturity. it is the equivalent of the internal rate of return.
If the yield to maturity is greater than the bonds coupon rate the bond is selling at a discount
If the yield to maturity is less than the bonds coupon rate the bond is selling at a premium
If a bond’s coupon rate is equal to its yield to maturity, then the bond is selling at par.
the bond is selling at a premium as 1100 is greater than 1000. Thus, the ytm is less than 10%
Fickle Company purchased a machine at a total cost of $220,000 (no residual value) at the beginning of 2018. The machine was being depreciated over a 10-year life using the sum-of-the-years'-digits method. At the beginning of 2021, it was decided to change to straight-line. An accompanying disclosure note would include each of the following except: Multiple Choice The cumulative effect of the change. Justification that the change is preferable. The effect of a change on per share amounts affected for all periods reported. The effect of a change on any financial statement line items affected for all periods reported.
Answers
Answer:
Fickle Company
An accompanying disclosure note would include each of the following except:
The effect of a change on per share amounts affected for all periods reported.
Explanation:
a) Data and Analysis:
Total cost of machine = $220,000
Useful life of machine = 10 years
Method of depreciation = the sum-of-the-years'-digits method
b) The sum-of-the-years'-digits method of depreciation adds up the years (e.g. 10, 9, 8, 7, 6, 5, 4, 3, 2, 1) to obtain 55 as the sum-of-the-years'-digits denominator. Each year's depreciation is then based on the number of years remaining. For example, the depreciation expense for year 1 will be $40,000 (10/55 * $220,000).
In disclosing this change in accounting method, that is, from the sum-of-the-years'-digits method to the straight-line method of depreciation, Fickle does not need to disclose the effect of the change on per share basis.
Third World Gamer Inc. manufactures components for computer games within a relevant range of 500,000 to 1,000,000 disks per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
Components produced 500,000 750,000 1,000,000
Total costs:
Total variable costs $600,000 (d) (j)
Total fixed costs 600,000 (e) (k)
Total costs $1,200,000 (f) (l)
Cost per unit:
Variable cost per unit (a) (g) (m)
Fixed cost per unit (b) (h) (n)
Total cost per unit (c) (i) (o)
Complete the cost schedule above. Round costs per unit to the nearest cent.
Answers
Answer:
Third World Gamer Inc.
Cost Schedule
Components produced 500,000 750,000 1,000,000
Total costs:
Total variable costs $600,000 900,000 1,200,000
Total fixed costs 600,000 600,000 600,000
Total costs $1,200,000 $1,500,000 $1,800,000
Cost per unit:
Variable cost per unit $1.20 $1.20 $1.20
Fixed cost per unit $1.20 $0.80 $0.60
Total cost per unit $2.40 $2.00 $1.80
Explanation:
a) Data and Calculations:
Components produced 500,000 750,000 1,000,000
Total costs:
Total variable costs $600,000 (d) (j)
Total fixed costs 600,000 (e) (k)
Total costs $1,200,000 (f) (l)
Cost per unit:
Variable cost per unit (a) (g) (m)
Fixed cost per unit (b) (h) (n)
Total cost per unit (c) (i) (o)
Variable cost per unit = $1.20 ($600,000/500,000)
5 questions you would ask your self before writing a business plan
Answers
2) What is my niche and who is my target customer?
3) Who will be on my team to help with my new business?
4) What amount of funding do I need to start?
5) What business structure should I choose?
what more, could starbucks have done, to maximize it's chances of success with laboulange
Answers
Answer:
It probably felt like the end of the line last year when Starbucks announced plans to close all 22 La Boulange pastry shops. This was the very same croissant-creating brand that Starbucks CEO Howard Schultz once publicly praised as a key to boosting the quality of Starbucks baked goods.
But for La Boulange founder Pascal Rigo, the store closure wasn’t the end. It was a new beginning. At 56, Rigo is in the midst of making one of fast-casual’s most widely watched reinventions. In Humpty Dumpty-like fashion, he is gluing the broken pieces together again and has opened five stores in the San Francisco Bay Area—with two more on the way—under the name, La Boulangerie de San Francisco.
His grand plans: to reassemble La Boulangerie as a fast-casual powerhouse by opening up some 20 to 40 locations. He also plans to enlarge its 40,000-foot baked goods facility in San Francisco that attracts business from such high-profile retail clients as Costco and, reportedly, Trader Joe’s. While it may not be quite the magnitude of what Chipotle CEO Steve Ells accomplished after buying back Chipotle from McDonald’s, the guy who founded La Boulange has a nice chunk of it back from Starbucks.How is Starbucks diversifying itself by purchasing La Boulange? y increasing its product offerings to include bakery items. How does Starbucks' current market power increase its chances for success in expanding its product offerings to include bakery items?
have a good day/night
may i please have a branlliest
sorry if it wrong
Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes.
Example M1 M2
Susan has $8,000 in a two-year certificate of deposit (CD).
Larry has a roll of quarters that he just withdrew from the bank to do laundry.
Raphael has $25,000 in a money market account.
Answers
Answer and Explanation:
The identification is as follows:
As we know that
M! money supply involved all the currecies that have physical existance i.e. notes, coins, demand deposits etc
While on the other hand, M2 involves M1 + near money i.e. mutual funds, checking deposits, money market etc
Since Susan has 2 year CD so it would be classified as a M2 money supply
Since larry withdraw from the bank so it would be included in M1 and M2
And, since raphael has $25,000 in money market so would be classified as a M2 money supply
EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner time has a $800 budgeted price and $375 budgeted variable cost. Each billable hour of staff time has a budgeted price of $210 and a budgeted variable cost of $120. For the most recent year, the partnership budget called for 5,000 billable partner-hours and 20,000 staff-hours. Actual results were as follows:
Partner revenue $4264,000 5200 hours
Staff revenue $4510,000 22,000 hours
Required
Compute the sales price and activity variances for these data. Also compute the mix and quantity variances.
Answers
Answer:
EZ-Tax
Partner Staff Total
a. Sales price variance $104,000 ($110,000) ($6,000) U
b. Activity variance $160,000 $420,000 $580,000 F
c. Mix variance $85,000 $180,000 $265,000 F
d. Quantity variance $189,000 $70,000 $259,000 F
Explanation:
a) Data and Calculations:
Partner Staff
Budgeted billable rate per hour $800 $210
Budgeted variable cost per hour 375 120
Budgeted billable hours 5,000 20,000
Budgeted revenue $4,000,000 $4,200,000
Budgeted variable cost 1,875,000 2,400,000
Actual revenue $4,264,000 $4,510,000
Actual billable hours 5,200 22,000
Actual billable rate per hour $820 $205
Budgeted billable rate per hour $800 $210
Variance in price $20 ($5)
Sales price variance $104,000 ($110,000) ($6,000)
Sales price variance = (Standard price - Actual price) * Actual billable hours
= ($800 - $820) * 5,200 + ($210 - $205) * 22,000
= $20 * 5,200 + ($5) * 22,000
= $104,000 - 110,000
= $6,000 U
Activity variance = (Actual billable hours - Standard billable hours) * Standard rate
= (5,200 - 5,000) * $800 + (22,000 - 20,000) * $210
= (200 * $800) + (2,000 * 210)
= $160,000 + 420,000
= $580,000 F
Partner Staff Total
Budgeted revenue $4,000,000 $4,200,000 $8,200,000
Budgeted variable cost 1,875,000 2,400,000 4,275,000
Budgeted contribution $2,125,000 $1,800,000 $3,925,000
Actual revenue $4,264,000 $4,510,000 $8,774,000
Actual variable cost 1,950,000 2,640,000 4,590,000
Actual contribution $2,314,000 $1,870,000 $4,184,000
Quantity variance $189,000 $70,000 $259,000
Quantity variance = Budgeted contribution - Actual contribution
= $3,925,000 - $4,184,000
= $259,000 F
Mix Variance:
Standard contribution margin $425 $90
Volume variance 200 2,000
Mix variance = $85,000 $180,000
ABC Company holds a well-diversified portfolio in the amount of $90,000 that has an expected return of 11.0% and a beta of 1.28. It is buying 1,000 shares of DEF Company stock at $10 a share and adding them to its portfolio. DEF Company has an expected return of 13.0% and a beta of 1.50. Currently, the risk free rate is 2.5%, and the stock market return is 8.06%.
What will the beta on the portfolio be after the purchase of the Syngine stock?
a. 1.17
b. 1.29
c. 1.36
d. 1.42
e. 1.23
Answers
A warranty guarantees that the product sold will be acceptable for the purpose for which the buyer intends to use it.
t or f
Answers
Answer:
True
Explanation:
A warantee is a written assurance that some product or service will be provided or will meet certain specifications.
Hope this helps! <3
At the present time, Perpetualcold Refrigeration Company (PRC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,329.55 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 35%. If PRC wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)
Answers
Answer:
Perpetualcold Refrigeration Company (PRC)
The reasonable estimate for PRC's after-tax cost of debt is:
= 0.08.
Explanation:
a) Data and Calculations:
Face value of 15-year noncallable bonds outstanding = $1,000 per bond
Current market price per bond = $1,329.55
Coupon rate of bonds = 12% per annum
Federal-plus-state tax rate = 35%
Cost of new debt = $120 per annum ($1,000 * 12%)
After-tax cost of debt = $120 (100% - 35%)
= $120 * 65%
= $78
= $78/$1,000 = 0.078
= 0.08
b) The cost of PRC's new debt is the calculated rate that the company will pay on its new debt. The major differentiating factor between the cost of debt and the after-tax cost of debt is the deduction of interest expense. In PRC's capital structure decisions, determining the cost of debt, especially the after-tax cost of debt, and comparing it with the cost of equity involve some rigorous financial computations.
During the year, Walt who is self-employed travels from Seattle to Tokyo, Japan, on business. His time was spent as follows: two days travel (one day each way), two days business, and two days personal. His expenses for the trip were as follows (meals and lodging reflect only the business portion): Airfare $3,000 Lodging 2,000 Meals 1,000 Presuming no reimbursement, Walt's deductible expenses are: a.$3,500. b.$6,000. c.$4,500. d.$5,500.
Answers
Answer:
d.$5,500.
Explanation:
The computation of the deductible expense is shown below:
= Airfare + lodging + 50% of meals
= $3,000 + $2,000 + 50% of $1,000
= $3,000 + $2,000 + $500
= $5,500
hence, the deductible expense is $5,500
Here we take 100% of airfare & lodging but we took 50% for the meals
hence, the option d is correct
Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows:
Junior Pro Striker
Production budget 7,400 units 18,600 units
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
Forming Department Assembly Department
Junior 0.2 hour per unit 0.4 hour per unit
Pro Striker 0.35 hour per unit 0.7 hour per unit
The direct labor rate for each department is as follows:
Forming Department $14 per hour
Assembly Department $12 per hour
Required:
Prepare the direct labor cost budget for July.
Answers
Answer and Explanation:
The preparation of the direct labor cost budget for July month is as follows:
Particulars Forming Dept Assembly Dept
Production 7,400 units 18,600 units
Hours required junior 1,480 2,960
(7,400 units × 0.2) (7,400 units × 0.4)
Hours required pro 6,510 13,020
(18,600 units × 0.35) (18,600 units × 0.7)
Total hours 7,990 15,980
Total hours rate $14 $12
Total direct labor cost $111,860 $191,760
In the context of customer benefit packages,__________are those that are not essential to the primary service, but enhance it.
a.
central services
b.
peripheral services
c.
tertiary services
d.
core services
Answers
When the quantity of coal supplied is measured in kilograms instead of pounds, the demand for coal becomes
Answers
Answer:
the quantity of coal becomes more elastic
hope this helps you ☺️☺️
25 points and brainliest. Dawn works in a car manufacturing factory. She spends her day
assembling the locks for car doors and placing them along an assembly
line. The pathway in the Manufacturing career cluster that Dawn
works in is
Production
Manufacturing Production Process Development
Maintenance, Installation & Repair
Quality Assurance
Answers
Answer:
im pretty sure the answer is "Manufacturing Production Process Development"
Answer:
cool beanzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
Explanation:
Olsen Outfitters Inc. believes that its optimal capital structure consists of 65% common equity and 35% debt, and its tax rate is 40%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $2 million of retained earnings with a cost of rs = 12%. New common stock in an amount up to $7 million would have a cost of re = 16%. Furthermore, Olsen can raise up to $2 million of debt at an interest rate of rd = 10%, and an additional $5 million of debt at rd = 12%. The CFO estimates that a proposed expansion would require an investment of $5.7 million.
Required:
What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places.
Answers
Answer: 12.5%
Explanation:
Amount that will be raised with Equity = 65% * 5,700,000 = $3,705,000
This is more than the retained earnings so new equity will have to be issued at cost of 16%
Amount raised by debt = 35% * 5,700,000 = $1,995,000
Less than $2 million so cost of debt is 10%
WACC = cost of equity * weight of equity + weight of debt * cost of debt * ( 1 - tax rate)
= (16% * 65% ) + (35% * 10% * (1 - 40% tax))
= 12.5%
what is money placed in a checking account called
Answers
Answer:
bank account
Explanation:
The net income reported on the income statement for the current year was $225,000. Depreciation recorded on plant assets was $38,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $1,000 and $11,000 respectively. How much cash was provided by operating activities
Answers
Answer:
The amount of cash provided by operating activities is $243,000.
Explanation:
The amount of cash provided by operating activities can be calculated as follows:
Cash provided by operating activities = Net income + Depreciation - Increase in accounts receivable - Increase in inventory + Decrease in prepaid expenses - Decrease in accounts payable
Cash provided by operating activities = $225,000 + $38,000 - $2,000 - $8,000 + $1,000 - $11,000
Cash provided by operating activities = $243,000
Therefore, the amount of cash provided by operating activities is $243,000.
In 2020, Miranda records net earnings from self-employment of $158,500. She has no other gross income. Determine the amount of Miranda's self-employment tax and her for AGI income tax deduction. In your computations round all amounts to two decimal places. Round your final answers to the nearest dollar. Miranda's self-employment tax is $fill in the blank 1 and sh
Answers
Answer:
Miranda's self-employment tax = $21,320
AGI income tax deduction = $10,660
Explanation:
Particulars Amount
Net Earnings from Self Employment $158,500
Taxable Self employment Earnings $146,374.75
(158,500*92.35%)
Social Security Tax ($137,700*12.4%) $17,074.80
Medicare Tax ($146,375*2.9%) $4,244.88
Self employment Tax = Social Security tax + Medicare tax
Self employment Tax = $17,074.80 + $4,244.88
Self employment Tax = 21,320
Taxpayer are allowed a deduction for AGI of 50% of self-employment tax.
= $21,320*50%
= $10,660
Oriole Company has issued three different bonds during 2022. Interest is payable annually on each of these bonds. 1. On January 1, 2022, 1,000, 8%, 5-year, $1,000 bonds dated January 1, 2022, were issued at face value. 2. On July 1, $854,000, 9%, 5-year bonds dated July 1, 2022, were issued at 101. 3. On September 1, $281,000, 7%, 5-year bonds dated September 1, 2022, were issued at 99. Prepare the journal entry to record each bond transaction at the date of issuance.
Answers
Answer:
Transaction 1
Debit : Cash ($1,000 x 1,000) $1,000,000
Credit : Bond Payable $1,000,000
Transaction 2
Debit : Cash ($854,000 x 101.30%) $865,102
Credit : Bond Payable $865,102
Transaction 3
Debit : Cash ($281,000 x 99%) $278,190
Credit : Bond Payable $278,190
Explanation:
On each issuance date recognize a cash inflow and a liability - Bond Payable to the extent of the amount paid on issue.
Platinum Services provides outsourced employee benefits administration services to several private and public sector companies. It is now planning to attract new business by introducing a premium service for high revenue companies (with year-end revenues of $2 billion or more) and wants to undertake a survey of companies sampled from the New York Stock Exchange, which lists public sector companies, in order to estimate the popularity of such a proposal.
Required:
What best describes the sampling frame?
Answers
Answer:
High revenue public companies on New York Stock Exchange
Explanation:
Sampling Frame is a list of all the units of population, which can be included in sample.
In this case - survey of sampled high revenue companies from New York Stock Exchange, for analysing popularity of 'employee benefit services'. Sampling Frame would be list of all high revenue public companies on New York Stock Exchange, out of which sample companies (for survey) will be selected.
Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows:
Tech Support Department $516,000
Purchasing Department 89,600
Other corporate administrative expenses 560,000
Total corporate expense $1,165,600
The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows:
Tech Support Purchasing
Consumer Division 375 computers 1,960 purchase prder
Commercial Division 225 3640
Total 600 computers 5,600 purchase order
The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows:
Consumer Commercial
Revenues $7,430,000 $6,184,000
Cost of goods sold 4,123,000 3,125,000
Operating expenses 1,465,000 1,546,000
Required:
Prepare the divisional income statements for the two divisions.
Answers
Answer:
Yozamba Technology
Divisional Income Statements:
Consumer Commercial Total
Revenues $7,430,000 $6,184,000 $13,614,000
Cost of goods sold 4,123,000 3,125,000 7,248,000
Gross profit $3,307,000 $3,059,000 $6,366,000
Operating expenses 1,465,000 1,546,000 3,011,000
Corporate expenses:
Tech Support 322,500 193,500 516,000
Purchasing 31,360 58,240 89,600
Other corporate administrative expenses 560,000
Total expenses $1,818,860 $1,797,740 $4,176,600
Net income (loss) $1,488,140 $1,261,260 $2,189,400
Explanation:
a) Data and Calculations:
Corporate expenses for the year ended December 31, 20Y7:
Tech Support Department $516,000 Number of computers
Purchasing Department 89,600 Number of POs
Other corporate administrative expenses 560,000
Total corporate expense $1,165,600
Usage of Service:
Tech Support Purchasing
Consumer Division 375 computers 1,960 purchase order
Commercial Division 225 3,640
Total 600 computers 5,600 purchase order
Overhead Rates:
Tech Support = $860 per computer ($516,000/600)
Purchase = $16 per purchase order ($89,600/5,600)
Allocation of Corporate Expenses:
Tech Support Purchasing Total
Consumer Division $322,500 $31,360 353,860
(375 * $860) (1,960 * $16)
Commercial Division 193,500 58,240 251,740
(225 * $860) (3,640 * $16)
Total $516,000 $89,600 $605,600