Answer and Explanation:
The adjusting entries are shown below:
a. Supplies Expense Dr ($2,750 - $600) $2,150
To Supplies $2,150
(being supplies expense is recorded)
Here supplies expense is debited as it increased the expense and credited the supplies as it decreased the assets
b. Depreciation expense $1,600
To Accumulated depreciation $1,600
(being depreciation expense is recorded)
Here depreciation expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets
A company produces and sells hair dryers in a market where price (p) and demand (D) are related follows: p = $35+ (3,000)/D-(4,800)/D2 The fixed cost (Ct) is $800 per month and the variable cost per hair dryer (c.) is $38. - Add to % E Q
With reference to the company in Question 1, assume price and demand are unrelated. The company sells the hair dryers for $80 each if they spend $8,000 per month on advertising (C.). CF and c, remain as indicated in Question 1. The maximum production capacity is 5,000 hair dryers per month.
a) What is the demand breakeven point?
b) Is the company's demand breakeven point (in %) more sensitive to 10% increase in sales price or 20% reduction in variable costs? Explain your answer.
Answer:
Explanation:
Given that:
[tex]p = 35 + \dfrac{3000}{D}- \dfrac{4800}{D^2}[/tex]
The total revenue = p × D
∴
multiplying both sides by D; we have:
[tex]p\times D = 35 \times D + \dfrac{3000}{D} \times D- \dfrac{4800}{D^2}\times D[/tex]
[tex]= 35 D +3000}{D} - \dfrac{4800}{D}[/tex]
The total cost = (Per unit Variable cost × D) + Advertising cost
The total cost = 38D + 8000
The selling price = 80
From D units, the total revenue = 80D
∴
The break-even will take place when total revenue equals total cost.
So;
8000 + 38D = 80D
8000 = 80 D - 38D
8000 =42D
D = 8000/42
D = 190.48
(b)
Suppose the new sales price
Then;
8000 + 38D = 88D
8000 = 88D - 38D
8000 = 50D
D = 160
Hence, the break-even decreases by:
[tex]\Big(\dfrac{190.48-160}{190.48}\times 100\Big) = 16\%[/tex]
However; suppose the variable cost = 30.4
Then;
8000 + 30.4D = 80D
8000 = 80D - 30.4D
8000 = 49.6D
D = 8000/49.6
D = 161.29
Therefore;
This implies that the break-even decreased by:
[tex]\Big(\dfrac{190.48-161.29}{190.48}\times 100\Big) = 15.32\%[/tex]
Hence, the break-even is more likely to change by 10% in its selling price.
You are considering buying stock A. If the economy grows rapidly, you may earn 40 percent on the investment, while a declining economy could result in a 15 percent loss. Slow economic growth may generate a return of 3 percent. If the probability is 19 percent for rapid growth, 39 percent for a declining economy, and 42 percent for slow growth, what is the expected return on this investment
Answer:
3.01%
Explanation:
Calculation for what is the expected return on this investment
Expected return =(0.19)(0.40) + (0.42)(0.03) + (0.39)(-0.15)
Expected return=0.076+0.0126+-0.0585
Expected return=0.0301*100
Expected return=3.01%
Therefore the expected return on this investment will be 3.01%
According to the Bureau of Labor Statistics, there are about 3 million temp employees in the U.S. out of 150 million employees overall. What percentage of workers are temporary workers?
Answer:2%
Explanation:
Answer:2%
Explanation:
Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $5,000 under each of the following situations:
1. The first payment is received at the end of the first year, and interest is compounded annually.
2. The first payment is received at the beginning of the first year, and interest is compounded annually.
3. The first payment is received at the end of the first year, and interest is compounded quarterly.
Depoosite date: 12/31/17, i=?, n=?, Deposit= $4100, PV - 12/31/16: ?
Deposite date 12/31/18, i=?, n=?, Deposit=$4100, PV -12/31/16: ?
Deposite date: 12/31/19, i=?, n=?, Deposit= $4100, PV- 12/31/16: ?
Deposti date: 12/31/20, i=?, n=?, Depostie= $4100, PV - 12/31/16: ?
Deposit date: 12/31/21, i=?, n=?, deposite=$ 4100, PV - 12/31/16: ?
Solution :
Annual payment = [tex]$\$ 5000$[/tex]
1. The rate of interest annually = 12%
Present value [tex]$=\$5000 \times \text{PVA of} \ \$1(12\%, 5)$[/tex]
[tex]$=\$5000 \times 3.60478$[/tex]
= $ 18,023.90
2. The rate of interest annually = 12%
Present value [tex]$=\$5000 \times \text{PVAD of} \ \$1(12\%, 5)$[/tex]
[tex]$=\$5000 \times 4.03735$[/tex]
= $ 20,186.75
3. The rate of interest annually = 12%
The rate of interest quarterly = 3%
Present value = [tex]$\$5000 \times \text{PV of} \ \$1(3\%, 4) + \$5000 \times \text{PV of} \ \$1(3\%, 8) +\$5000 \times \text{PV of} \ \$1(3\%, 12) $[/tex] [tex]$+\$5000 \times \text{PV of} \ \$1(3\%, 16) + \$5000 \times \text{PV of} \ \$1(3\%, 16)$[/tex]
[tex]$= \$5000 \times 0.88849 + \$5000 \times 0.78941 + \$5000 \times 0.70138 + \$5000 \times 0.62317 + \$5000 \times 0.55368$[/tex][tex]$=\$ 17,780.65$[/tex]
Question
Felicia Rashad Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2006 through 2014 as follows.
Income (Loss) Tax Rate
2006 $29,000 30 %
2007 40,000 30 %
2008 17,000 35 %
2009 48,000 50 %
2010 (150,000 ) 40 %
2011 90,000 40 %
2012 30,000 40 %
2013 105,000 40 %
2014 (60,000) 45 %
Pretax financial income (loss) and taxable income (loss) were the same for all years since Rashad has been in business. Assume the carryback provision is employed for net operating losses. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
a) What entries for income taxes should be recorded for 2010? .
b) Indicate what the income tax expense portion of the income statement for 2010 should look like. Assume all income (loss) relates to continuing operations.
c)What entry for income taxes should be recorded in 2011?
d) How should the income tax expense section of the income statement for 2011 appear?
e) what entry for income taxes should be recorded in 2014
f) how should the income tax expense section of the statement for 2104 appear to be ?
?
Answer:
A. Dr Deferred Tax Asset 60,000.00
Cr Deferred Tax 60,000.00
B. Income Statement (Partial)
Current Tax -
Deferred Tax (60,000.00)
Total Tax (60,000.00)
C.Dr Deferred Tax Asset 36,000
Cr Deferred Tax 36,000
D. Income Statement (Partial)
Current Tax -
Deferred Tax 36,000
Total Tax 36,000
E. Dr Deferred Tax Asset 27,000
Cr Deferred Tax 27,000
F. Income Statement (Partial)
Current Tax -
Deferred Tax 27,000
Total Tax 27,000
Explanation:
A. Calculation for what the entries for income taxes should be recorded for 2010
Entries for Income tax for 2010
Dr Deferred Tax Asset 60,000.00
Cr Deferred Tax 60,000.00
2010 (150,000 *40 %)
(To record timing difference of carry forward losses)
b) Indication for what the income tax expense portion of the income statement for 2010 should look like. :
Felicia Rashad Corporation
Income Statement (Partial)
Current Tax -
Deferred Tax (60,000.00)
Total Tax (60,000.00)
c) Calculation for what the entries for income taxes should be recorded for 2011
Dr Deferred Tax Asset 36,000
Cr Deferred Tax 36,000
2011 (90,000* 40 %)
(To record deferred tax asset utilization)
d) Income tax expense section of the income statement for 2011 appear
Felicia Rashad Corporation
Income Statement (Partial)
Current Tax -
Deferred Tax 36,000
Total Tax 36,000
e) Calculation for what the entries for income taxes should be recorded for 2014
Dr Deferred Tax Asset 27,000
Cr Deferred Tax 27,000
2014 (60,000*45 %)
(To record deferred tax asset utilization)
f) Income tax expense section of the income statement for 2014 appear
Felicia Rashad Corporation
Income Statement (Partial)
Current Tax -
Deferred Tax 27,000
Total Tax 27,000
Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $60 per basketball and $600 when the price is set at $40 per basketball. Without using the midpoint formula, identify whether demand is elastic, inelastic, or unit-elastic over this price range.
Answer:
Unit elastic
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded. Demand is unit elastic if total revenue remains the same over different prices
A firm now operates as a C-Corporation. The firm has earnings before taxes of $433,743 per year and pays out all its net earnings as dividends. The firm has a corporate tax rate is 24 percent. The firm has only one owner who faces a personal income tax rate of 27 percent. What is the spendable income for the owner of the C-Corporation
Answer:
The Spending income for the owner of the C-Corporation is:
= $240,641.
Explanation:
a) Data and Calculations:
Earnings before taxes = $433,743
Corporate tax rate = 24%
Corporate tax expense = 104,098 ($433,743 * 24%)
Net Earnings after taxes = $329,645
Dividends paid out = $329,645
Retained earnings = $0
Taxable income for the owner of the C-Corporation = $329,645
Income tax rate for the owner of the C-Corporation = 27%
Income tax for the owner of the C-Corporation = $89,004 ($329,645 * 27%)
Spending income for the owner of the C-Corporation = $240,641
b) The owner of this C-Corporation cannot avoid double taxation at the corporate and individual levels. To avoid this, the owner can choose an S-Corporation.
Katy has one child, Dustin, who is 18 years old at the end of the year. Dustin lived at home for three months during the year before leaving home to work full time in another city. During the year, Dustin earned $15,000. Katy provided more than half of Dustin's support for the year. Which of the following statements regarding whether Katy may claim Dustin as a dependent for the current year is accurate?
a. Yes, Dustin is a qualifying child of Katy.
b. Yes, Dustin fails the residence test for a qualifying child but he is considered a qualifying relative of Katy.
c. No, Dustin fails the support test for a qualifying relative.
d. No, Dustin fails the gross income test for a qualifying relative.
Answer:
d. No, Dustin fails the gross income test for a qualifying relative.
Explanation:
According to the given situation, the correct option is d as the gross income of dustin would be more than the income limit i.e. $4,200 for the tax year 2019 and $4,300 for the tax year 2020
So due to this he fails the test with respect to the gross income in order to qualify the relative
Use the following information to compute the cost of direct materials used for the current year. Assume the raw materials inventory account is used only for direct materials. (Assume no indirect materials.) January 1 December 31
January 1 December 31
Inventories
Raw materials inventory $6,000 7,500
Work in process inventory 12,000 9,000
Finished goods inventory 8,500 5,500
Activity during the current year
Materials purchased $123,500
Direct labor 94,000
Factory overhead 39,000
Answer:
the direct material used is $122,000
Explanation:
The computation of the direct material used is shown below:
= Opening raw material inventory + material purchased - ending raw material inventory
= $6,000 + $123,500 - $7,500
= $122,000
Hence, the direct material used is $122,000
A forklift will last for only 2 more years. It costs $5,000 a year to maintain. For $20,000 you can buy a new lift that can last for 10 years and should require maintenance costs of only $2,000 a year. a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 4% per year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Should you replace the forklift
Answer:
The equivalent cost of owning and operating the forklift is $4,465.82
We should replace the forklift.
Explanation:
The Equivalent annual cost can be calculated using the following formula
Equivalent annual cost = PV of cost / Annuity factor
Old forklift
PV of Cost = Annual cost x 2 years Annuity factor at 4% / 2 years Annuity factor at 4%
Hence
PV of cost = Annual cost = $5,000
New forklift
10 years Annuity factor at 4% = 1 - ( 1 + 4%)^-10 )/4% = 8.11090
PV of cost = ( Annual Cost x 10 years Annuity factor at 4% ) + Initial cost
PV of cost = ( $2,000 x 8.11090 ) + $20,000
PV of cost = 16,221.79 + $20,000
PV of cost = 36,221.79
Placing values in the formula
Equivalent annual cost = $36,221.79 / 8.11090
Equivalent annual cost = $4,465.82
As the equivalent annual cost of the new lift is lower than the the old one, we should replace the forklift
Making a financial transaction based on information not available to other
investors is known as
A. Sarbanes-Oxley
B. fair disclosure
C. insider trading
D. selling or buying short
SUBMIT
Answer:c.....
Explanation:a p e x
Making a financial transaction based on information not available to other investors is known as insider trading. Thus the correct option is C.
What is a financial transaction?A financial transaction is an arrangement for the exchange of commodities or services between a buyer and a seller. The financial account keeps systematic track of all financial transactions and summarises them.
Insider trading is the act of workers dealing in the stock or other securities of a publicly traded firm while in possession of substantial, non-public information on the company.
Insider trading is the act of buying or selling a financial instrument based on the knowledge that is not typically available to investors. Sales are transactions in which a buyer exchanges goods and services with a seller in return for cash or credit.
Therefore, option C is appropriate.
Learn more about Insider trading, here:
https://brainly.com/question/14031275
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Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X such that they would be indifferent between the two cash flow profiles if their TVOM is 4.5% per year compounded yearly.
End of Year Series 1 Series 2
0 $300 $0
1 $350 $0
2 $400 $35X
3 $450 $25X
4 $0 $15X
5 $0 $5X
Answer:
14.90
Explanation:
The computation of the value of X is shown below;
End of Year Series 1 Series 2 series 1 series 2
0 $300 $0 1 $300 $0
1 $350 $0 1.045 $366 $0
2 $400 $35X 1.092025 $437 38.15X
3 $450 $25X 1.141166 $514 35.25X
4 $0 $15X 1.192519 $0 28.8X
5 $0 $5X 1.246182 $0 6.2X
$1,616 108.4X
Now
108.4X = $1,616
x = $1,616 ÷ 108.4
= 14.90
Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for next year: Direct materials $ 1,000 Direct labor $ 3,000 Sales commissions $ 4,000 Salary of production supervisor $ 2,000 Indirect materials $ 400 Advertising expense $ 800 Rent on factory equipment $ 1,000 Reamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:
Answer:
$3.40 per machine-hour
Explanation:
Calculation for what The predetermined overhead rate per hour will be:
First step is to calculate the Total estimated manufacturing overhead
Manufacturing overhead:
Salary of production supervisor $2,000
Indirect materials $400
Rent on factory equipment$1,000
Total estimated manufacturing overhead $3,400
Now let calculate the Predetermined overhead rate using this formula
Predetermined overhead rate=Total estimated manufacturing overhead/Estimated machine-hours
Let plug in the formula
Predetermined overhead rate=$3,400/1,000
Predetermined overhead rate=$3.40 per machine-hour
Therefore The predetermined overhead rate per hour will be:$3.40 per machine-hour
it is a type of business that keeps the dealings,assets,and bank accounts seperate from his/her personal assets?
Answer:
A sole proprietorship
Explanation:
A sole proprietorship is a business owned, organized, and run by a sole proprietor. It is legally advisable that all business and private activities of any form of business are conducted separately. Commingling business dealings, assets, and especially bank accounts with private affairs do cause problems for the business person.
A company that makes fasteners and sells them to many different
manufacturing companies around the world would most likely benefit from
using which distribution channel?
A. Producer to wholesaler to business buyers
B. Producer to business buyers
C. Producer to wholesaler to consumers
D. Producer to retailers to business buyers
Answer:
A
Explanation:
A. Producer to wholesaler to business buyers
Partial adjusted trial balance for Sheffield Corp. at December 31, 2017, includes the following accounts: Retained Earnings $17,000, Dividends $6,700, Service Revenue $36,300 Salaries and Wages Expense $14,000, Insurance Expense $1,880, Rent Expense $4,080, Supplies Expense $1,440, and Depreciation Expense $900. The balance in Retained Earnings is the balance as of January 1.Prepare a retained earnings statement for the year assuming net income is $10,400. List items that increase retained earnings first.
Answer and Explanation:
The preparation of the retained earnings statement is presented below:
Beginning retained earnings balance $17,000
Add: Net income $10,400
less: Dividend -$6,700
Ending retained earnings balance $20,700
We simply added the net income and deduct the dividend from the opening retained earnings balance
On March 31, 2012, Destin Incorporated reported the following balance sheet:
Assets
Cash 3,000
Inventory 14,000
Prepaid Insurance 3,000
Equipment (net) 20.000
Total Assets 40,000
Liabilities & Owners' Equity
Loan Payable 10,000
Common Stock 25,000
Retained Eamings 5,000
Total Liabilities and OE 40,000
During the month ended April 30, 2012, Destin reports the following activities:
They earn revenue totaling $16,000 related to selling inventory, all received in cash. The cost of the inventory sold is $9,000.
Employees earn $2,000, all of which is paid in cash during April.
Other operating expense total $1,000, all paid in cash during April.
They purchase inventory for cash at a total cost of $10,000.
Other information:
A. Depreciation on the equipment is $1,000 per month.
B. The insurance policy was purchased on January 1, 2012, and covers six months.
Required:
1. Calculate Destin's net income for the month ended April 30, 2012.
2. Calculate Destin's retained earnings as of April 30, 2012.
3. Calculate the total assets as of April 30, 2012.
4. Calculate the total liabilities as of April 30, 2012.
5. Calculate the total owners' equity as of April 30, 2012.
6. Calculate the balance of Accumulated depreciation as of April 30, 2012.
Answer:
Destin Incorporated
1. Net income for the month ended April 30, 2012 is $1,000.
2. Retained earnings as of April 30, 2012 is $6,000.
3. Total assets as of April 30, 2012 is $41,000.
4. Total liabilities as of April 30, 2012 is $10,000.
5. The total owners' equity as of April 30, 2012 is $31,000.
6. The balance of Accumulated depreciation as of April 30, 2012 is $4,000.
Explanation:
a) Data and Calculations:
Balance sheet:
Assets
Cash 3,000 + 16,000 -2,000 - 1,000 - 10,000 = 6,000
Inventory 14,000 + 10,000 - 9,000 = 15,000
Prepaid Insurance 3,000 - 2,000 = 1,000
Equipment (net) 20,000 - 1,000
Total Assets 40,000
Liabilities & Owners' Equity
Loan Payable 10,000
Common Stock 25,000
Retained Earnings 5,000
Total Liabilities and OE 40,000
Revenue $16,000
Cost of goods sold 9,000
Gross profit $7,000
Wages 2,000
Other expenses 1,000
Depreciation expense 1,000
Insurance expense 2,000
Total expenses $6,000
Net income $1,000
Retained earnings:
Beginning balance 5,000
Net income 1,000
Ending balance 6,000
Total assets:
Cash balance 6,000
Inventory 15,000
Prepaid insur. 1,000
Equipment 19,000
Total assets = 41,000
Total liabilities:
Loan Payable 10,000
Equity:
Common Stock 25,000
Retained earnings 6,000
Owners' equity 31,000
For the year, the balance of Accumulated Depreciation = $4,000 ($1,000 * 4)
the point where total expenses equals to total income?
Answer:
yfku
Explanation:
A company has a contract with the president that it has just hired. According to the contract a one-time payment of $24,800,000 will be paid to the president when he completes his first 9 years of service. For this purpose, the company would like to set aside equal amounts of money, once each year, in order to cover this anticipated large expense. The company can earn 8 percent on these amounts of money. How much will it need to set aside each year
Answer:
$1,985,976.79
Explanation:
The formula for finding the amount is :
A = FV/ annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
FV = Future value = $24,800,000
A = Amount
R = interest rate = 8%
N = number of years = 9
Annuity factor = (1.08^9 - 1 ) / 0.08 = 12.487558
$24,800,000 / 12.487558 = $1,985,976.79
Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $25,250. In addition, Jose incurred the following expenses before using the van: shipping costs of $1,270; paint to match the other fleet vehicles at a cost of $1,440; registration costs of $2,970, which included $2,750 of sales tax and an annual registration fee of $220; wash and detailing for $121; and an engine tune-up for $327.
Required:
What is Joseâs cost basis for the delivery van?
Answer:
$30,710
Explanation:
Calculation for Jose cost basis for the delivery van
Van Winning bid $25,250
Add Shipping costs of $1,270
Add Paint to match the other fleet vehicles $1,440
Add Sales tax $2,750
Basis for the delivery van $30,710
($25,250 + $1,270 + $1,440 + $2,750 )
Therefore Jose cost basis for the delivery van was $30,710
very urgent, i need this answered asap
Answer:
Yes they offer no fee but then they want payed for a small fee....... Aaaa business this days
George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5 years ago. The amount of the loan was $350,000 for a term of 30 years, with interest at the rate of 9%/year compounded monthly. Currently, the interest rate for his ARM is 3.5%/year compounded monthly, and George's monthly payments are due to be reset. What will be the new monthly payment
Answer:
$1,680
Explanation:
during the first 5 years, the monthly payment will = $2,816.18
I prepared an amortization schedule. After the 60th payment, the principal owed = $335,580
the new monthly payment considering that the interest rate fell significantly to 3.5% = $1,680
calculation to determine the monthly payment:
present value of the loan = monthly payment x PVIFA
monthly payment = present value / PVIFA
PVIFA, 0.29167%, 300 periods = 199.7501
monthly payment = $335,580 / 199.7501 = $1,680
Whether to pay a lawmaker for giving a speech at your company is an ethical
dilemma that deals with
O A. lobbying
B. awarding honoraria
c. professional standards
D. gift giving
Answer: D
Explanation:
Answer:
D. gift giving
Explanation:
Makers Corp. had additions to retained earnings for the year just ended of $194,000. The firm paid out $184,000 in cash dividends, and it has ending total equity of $4.89 million. The company currently has 120,000 shares of common stock outstanding. a. What are earnings per share
Answer:
Makers Corp.
The Earnings Per Share are:
= $3.15.
Explanation:
a) Data and Calculations:
Additions to retained earnings for the year = $194,000
Cash dividends paid out = 184,000
Net income = $378,000
Total equity = $4.89 million
Outstanding shares = 120,000
Earnings per share = Net Income/Outstanding shares
= $378,000/120,000
= $3.15
b) The earnings per share (EPS) is a financial metric that is widely used to corporate value. It indicates the amount of money that a company makes for its stockholders per share. It is computed by dividing the net income by the number of outstanding shares.
Which of these is a characteristic of certificates of deposit (CDs)?
Answer:
They last for a certain period of time
Explanation:
Typically Certificates of Deposit are offered if the set amount is deposited and kept through the stated amount of time. (The length of the CD can be anywhere from 18 months to 3 years [most popular]) When the money is removed short of the stated time period a penalty is taken from the value of the CD.
Answer:
b.) They last for a set period of time.
After graduating college, you receive $10,000 and decide to put it in a high yield saving account. The account earns 0.50% compounded quarterly. a) (8 points) What is the effective annual interest rate? b) (7 points) If you leave your initial investment of $10,000 in the account without any withdrawals what would you expect the value of the account to be after 4 years?
Answer:
a)
The effective annual interest rate is 0.5009%
b)
I will expect $10,201.88 the value of the account after 4 years
Explanation:
a)
Use the following formula to calculate the effective annual interest rate
Effective annual Interest rate = ( ( 1 + Interest rate / Compounding period per year )^Compounding period per year ) - 1
Where
Interest rate = 0.50%
Compounding period per year = 4 quarters in a year
Placing values in the formula
Effective annual Interest rate = ( ( 1 + 0.5% / 4 )^4 ) - 1 = 0.005009 = 0.5009%
b)
Use the following formula to calculate the value after 4 years
Value after 4 years = Current Investment x ( 1 + Periodic Interest rate )^numbers of period
Where
Current Investment = $10,000
Periodic Interest rate = 0.50% / 4 = 0.125%
Numbers of period = Compounding Periods per year x Numbers of years = 4 quarters per year x 4 years = 16 quarters
Placing values in the formula
Value after 4 years = $10,000 x ( 1 + 0.125% )^16
Value after 4 years = $10,201.88
Karen, Inc. manufactures a product that uses $15 in direct materials and $5 in direct labor per unit. Under the traditional costing system Karen uses, manufacturing overhead applied to each unit is $12. However, Karen is considering switching to an ABC system. Under the ABC system, the total activity cost would be $25. What is the total manufacturing cost per unit for Karen under the ABC system
Answer:
oie no sepo ingles:"(
Explanation:
perdonwnmeeeeeeeeeeeeeeeeeee
On January 1, 2021, Teal Corp. had 502,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account.
February 1 Issued 125,000 shares
March 1 Issued a 10% stock dividend
May 1 Acquired 98,000 shares of treasury stock
June 1 Issued a 3-for-1 stock split
October 1 Reissued 58,000 shares of treasury stock
The weighted-average number of shares outstanding. Assume that Indigo Corp. earned net income of $3,605,000 during 2021. In addition, it had 104,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021. Compute earnings per share for 2018, using the weighted-average number of shares.
Assume that Indigo Corp. earned net income of $3,605,000 during 2021. In addition, it had 104,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021. Compute earnings per share for 2018, using the weighted-average number of shares determined in part (a).
Answer:
a. The weighted-average number of shares for 2021 is 1,853,225 shares.
b. Earnings per share for 2021 = $1.95 per share
Explanation:
Note: The correct year in the requirement is 2021 not 2018 as erroneously stated parts a and b.
The explanation of the answers is now given as follows:
a. Compute earnings per share for 2021, using the weighted-average number of shares.
Note: See the attached excel file for the computation of the weighted-average number of shares.
From the attached excel file (see the bold red color), the total weighted-average number of shares for 2021 is 1,853,225 shares.
b. Assume that Indigo Corp. earned net income of $3,605,000 during 2021. In addition, it had 104,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021. Compute earnings per share for 2021, using the weighted-average number of shares determined in part (a).
To calculate earnings per share for 2021, the following formula is used:
Earnings per share for 2021 = Net income of $3,605,000 during 2021 / Weighted-average number of shares for 2021
Therefore, we have:
Earnings per share for 2021 = $3,605,000 / 1,853,225 = $1.95 per share
George Gershwin Co. sold $2,000,000 of 10%, 10-year bonds at 104 on January 1, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and January 1. If Gershwin uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020.
Answer:
July 1, 2020 $96,000
December 31, 2020 $96,000
Explanation:
Calculation to determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020.
Firststep is to get calculate the Premium amortization (Straight-line)
Issue price of the bonds $2,080,000
($2,000,000 x 1.04)
Less Par value of bonds ($2,000,000)
Premium on bonds payable $80,000
÷ Numbet of interest payments 20 times
(10 years x 2 times)
= Premium amortization (Straight-line) $4,000
($80,000÷20 times)
Now let calculate the Interest expense
Interest payment $100,000
(2,000,000 x 10% x 6/12)
Less Premium amortization ($4,000)
Interest expense $96,000
($100,000-$4,000)
Hence,using the straight line method, Interest expense will be $96,000 for every time.
Therefore the amount of interest expense to be reported on July 1, 2020 is $96,000, and December 31, 2020 is $96,000
what is financial ratio?
Answer:
financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.
Explanation:
financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.