Answer:
Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties.
A store has the following sales for the next three month: May $ 240,000 June $ 200,000 July $ 190,000 Cash sales are 25% and all the remaining credit sales (75%) are collected in the month following the sale. The total amount of cash expected to be collected from customers in July is
Answer:
$197,500
Explanation:
Calculation for July cash collections
Cash collection = $ 190,000 x 25 % + $ 200,000 x 75 %
= $197,500
The total amount of cash expected to be collected from customers in July is $197,500.
A company had credit sales of $46,000 and cash sales of $18,000 during the month of May. Also during May, the company paid wages of $16,000 and utilities of $5800. It also received payments from customers on account totaling $15,800. At the beginning of May, the company had a cash balance of $25,000. What is the company's cash balance at the end of May
Answer:
the cash balance at the end of May is $37,000
Explanation:
The computation of the cash balance at the end of May is shown below:
= Opening cash balance + cash sales + received payment - paid wages - utilities
= $25,000 + $18,000 + $15,800 - $16,000 - $5,800
= $37,000
Hence, the cash balance at the end of May is $37,000
We simply applied the above formula to determine the cash balance at the end of May
Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 1,700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $8 per unit of average inventory. Every time an order is placed for more of item X, it costs $26. a. Whenever item X is ordered, what should the order size be
Answer:
EOQ = 105.11898 rounded off to 105 units per order
Explanation:
To calculate the optimum order size when each order is placed, we need to find the EOQ or Economic order quantity. It is the quantity that should be ordered each time to minimize the inventory related costs. The formula to calculate EOQ is attached. The EOQ is calculated as follows.
EOQ = √[(2 * 1700 * 26) / 8]
EOQ = 105.11898 rounded off to 105 units
Bacchus Enterprises has $12B in book value of common stock selling at a book to market rate of 1.35 and a beta of 1.5. The combined preferred stock is valued at $8.5B with a beta of 1.23. The restructured debt has a book value of $4.8B in book value and has a coupon of 6%, maturing in 9 years, and selling at 102.5%. The market is doing quite well and is returning 14% with a risk free asset returning 4%. What is the Cost of Preferred Stock
Answer: 16.3%
Explanation:
Given the details in the question, the cost of preferred capital can be calculated using the CAPM method.
Cost of preferred stock using the Capital Asset Pricing Model is:
= Risk free rate + Beta * ( Market return - Risk free rate)
= 4% + 1.23 * (14% - 4%)
= 16.3%
A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results.
Machine 1 Measirement 17 15 15 17
Machine 2 Measurement 16 25 18 25
Machine 3 Measurement 23 24 23 22
What are the Mean chart three-sigma upper and lower control limits?
a. 22 and 18
b. 23.16 and 16.84
c. 22.29 and 16.71
d. 23.5 and 16.5
e. 24 and 16
Answer:
b. 23.16 and 16.84
Explanation:
Mean (X-bar) = Sum of observations / No of observations
Range (R) = Highest observation - Lowest observation
Machine 1
Mean (X-bar) = (17 + 15 + 15 + 17) / 4
Mean (X-bar) = 16
Range (R) = (17 - 15)
Range (R) = 2
Machine 2
Mean (X-bar) = (16 + 25 + 18 + 25) / 4
Mean (X-bar) = 21
Range (R) = (25 - 16)
Range (R) = 9
Machine 3
Mean (X-bar) = (23 + 24 + 23 + 22) / 4
Mean (X-bar) = 23
Range (R) = (24 - 22)
Range (R) = 2
Mean of means (X-double bar) = Sum of X-bar / Number of samples = (16 + 21 + 23) / 3 = 20
Mean of ranges (R-bar) = Sum of R / Number of samples = (2 + 9 + 2) / 3 = 4.33
From table of constants for calculating the 3-sigma upper and lower control limits, For n = 4, A2 = 0.729
UCL = X-double bar + (A2 x R-bar)
UCL = 20 + (0.729 x 4.33)
UCL = 23.1566
UCL = 23.16
LCL = X-double bar - (A2 x R-bar)
LCL = 20 - (0.729 x 4.33)
LCL = 16.8434
LCL = 16.84
Milton Friedman and Edmund Phelps argued in the late 1960s that in the long run the Phillips curve is a. downward-sloping, which implies that monetary and fiscal policies can influence the level of unemployment in the long run. b. downward-sloping, which implies that monetary and fiscal policies cannot influence the rate of inflation in the long run. c. vertical, which implies that monetary and fiscal policies cannot influence the level of unemployment in the long run. d. vertical, which implies that monetary and fiscal policies cannot influence the rate of inflation in the long run
Answer: c. vertical, which implies that monetary and fiscal policies cannot influence the level of unemployment in the long run.
Explanation:
The Phillip Curve is used to show that unemployment and inflation have an inverse relationship such that when inflation is increasing, unemployment is decreasing. Fiscal and monetary policies can be used to increase or decrease inflation and unemployment.
In the long run however, the Philips Curve is vertical which means that unemployment will no longer be affected by fiscal and monetary policies that aim to impart inflation because the economy will be at the natural rate of unemployment.
Yahir wants to become an Actor. What are the most helpful examples of milestones for this goal? Check all that apply.
taking an acting class
running a race
taking a science class
learning how to cook
participating in a school play
auditioning for a part in a television show
The helpful examples of milestones for becoming an actor includes:
taking an acting classparticipating in a school play auditioning for a part in a television showWho is an actor?An actor means someone who profession is based on acting on the stage, films, television etc.
The helpful examples of milestones for becoming an actor includes taking an acting class, participating in a school play and auditioning for a part in a television show.
Therefore, the Option A, E and F is correct.
Read more about Actor skills
brainly.com/question/1543496
Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality $ 78,000 Quality data gathering, analysis, and reporting $ 23,000 Net cost of spoilage $ 88,000 Re-entering data because of keying errors $ 98,000 Test and inspection of in-process goods $ 24,000 Final product testing and inspection $ 78,000 Statistical process control activities $ 49,000 Returns arising from quality problems $ 16,000 Downtime caused by quality problems $ 26,000 What would be the total appraisal cost appearing on the quality cost report
Answer:
$102,000
Explanation:
Calculation to determine What would be the total appraisal cost appearing on the quality cost report
Using this formula
Total appraisal cost=Test and inspection of in-process goods + Final product testing and inspection
Let plug in the formula
Total appraisal cost=$ 24,000+$78,000
Total appraisal cost=$102,000
Therefore What would be the total appraisal cost appearing on the quality cost report is $102,000
Tamarisk, Inc. purchased a delivery truck for $29,200 on January 1, 2020. The truck has an expected salvage value of $2,200, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 16,100 in 2020 and 12,800 in 2021.
1. Calculate depreciation expense per mile under units-of-activity method.
2. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double- declining-balance method.
3. Prepare the journal entry to record 2020 depreciation.
4. Assume that Marigold uses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance sheet.
Answer:
1. Depreciation expense per mile = $0.27 per mile
2-1. The straight-line method
We have:
Depreciation expense for 2020 = $3,375
Depreciation expense for 2021 = $3,375
2-2. Units-of-activity method
We have:
Depreciation expense for 2020 = $4,347
Depreciation expense for 2021 = $3,456
2-3. The double-declining-balance method
We have:
Depreciation expense for 2020 = $7,300
Depreciation expense for 2021 = $5,475
3. See the journal entries below.
4. Net book value = $25,825
Explanation:
1. Calculate depreciation expense per mile under units-of-activity method.
Depreciation expense per mile = (Purchase price delivery truck - Expected salvage value) / Expected driven miles = ($29,200 - $2,200) / 100,000 = $0.27 per mile
2. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double- declining-balance method.
2-1. The straight-line method
Annual depreciation expense = (Purchase price of the delivery truck - Expected salvage value) / Estimated useful life = ($29,200 - $2,200) / 8 = $3,375
Therefore, we have:
Depreciation expense for 2020 = Annual depreciation expense = $3,375
Depreciation expense for 2021 = Annual depreciation expense = $3,375
2-2. Units-of-activity method
Depreciable amount = Purchase price of the delivery truck - Expected salvage value = $29,200 - $2,200 = $27,000
Therefore, we have:
Depreciation expense for 2020 = Depreciable amount * (Actual miles driven in 2020 / Expected driven miles) = $27,000 * (16,100 / 100,000) = $4,347
Depreciation expense for 2021 = Depreciable amount * (Actual miles driven in 2021 / Expected driven miles) = $27,000 * (12,800 / 100,000) = $3,456
2-3. The double-declining-balance method
Straight-line method depreciation rate = 1 / Estimated useful life = 1 / 8 = 0.1250, or 12.50%
Double-declining-balance method depreciation rate = Straight-line method depreciation rate * 2 = 12.50% * 2 = 25%
Therefore, we have:
Depreciation expense for 2020 = Purchase price of the delivery truck * Double-declining-balance method depreciation rate = $29,200 * 25% = $7,300
Depreciation expense for 2021 = (Purchase price of the delivery truck - Depreciation expense for 2020) * Double-declining-balance method depreciation rate = ($29,200 - $7,300) * 25% = $5,475
3. Prepare the journal entry to record 2020 depreciation.
3-1. The straight-line method
Date Particulars Debit ($) Credit ($)
2020 Depreciation expense 3,375
Accumulated dep. – Delivery truck 3,375
(To record 2020 depreciation expense.)
3-2. Units-of-activity method
Date Particulars Debit ($) Credit ($)
2020 Depreciation expense 4,347
Accumulated dep. – Delivery truck 4,347
(To record 2020 depreciation expense.)
3-3. The double-declining-balance method
Date Particulars Debit ($) Credit ($)
2020 Depreciation expense 7,300
Accumulated dep. – Delivery truck 7,300
(To record 2020 depreciation expense.)
4. Assume that Marigold uses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance sheet.
Tamarisk, Inc.
Balance sheet (Partial)
As at the Year Ended December 31, 2020
Details $
Fixed Assets
Delivery truck 29,200
Accumulated depreciation (3,375)
Net book value 25,825
The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is: a. Low (near 0%) b. High (near 100%) c. Dependent on the number of alternatives d. Dependent upon the number of states of nature 3 points
Answer: low (near 0%)
Explanation:
The expected monetary value(EMV) simply refers to the amount of money that an economic agent can expect to make based on a particular decision that's made.
It should be noted that the likelihood that a decision maker will be able to receive a payoff that is exactly as thesame as the EMV when a decision is being made will be near to zero as it's very low that it'll happen.
Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 1,285 $ 122 Accounts receivable (net) 3,500 3,300 Inventory 1,500 1,500 Other current assets 555 515 Total current assets $6,840 $5,437 Total current liabilities $3,420 $2,722 For the year, net credit sales were $13,940 million, cost of goods sold was $9,000 million, and net cash provided by operating activities was $1,254 million. Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover, and days in inventory at the end of the current year. (Round answers to 1 decimal place, e.g. 1.6.)
Answer:
a. Current ratio = Total current assets/Total current liabilities
Current ratio = $6,840/$3,420
Current ratio = 2 : 1
b. Accounts receivable turnover = Net credit sales / [Net beginning accounts receivables + Net ending accounts receivables / 2]
Accounts receivable turnover = $13,940 / [$3,300+$3,500/2]
Accounts receivable turnover = $13,940 / $3,400
Accounts receivable turnover = 4.1 times
c. Average collection period = 365 / Accounts receivables turnover
Average collection period = 365 / 4.1
Average collection period = 89.0244
Average collection period = 89 days
d. Inventory turnover = Cost of goods sold / [Beginning inventory+Ending inventory/2]
Inventory turnover = $9,000 / [$1,500+$1,500/2]
Inventory turnover = $9,000 / $1,500
Inventory turnover = 6 times
e. Days in inventory at the end of the current year = 365 / Inventory turnover
Days in inventory at the end of the current year = 365 / 6
Days in inventory at the end of the current year = 60.8333
Days in inventory at the end of the current year = 61 days
A government had the following transfers reported in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances: (1) a transfer from the General Fund to a debt service fund in the amount of $1,100,000; and (2) a transfer from the General Fund to a special revenue fund in the amount of $500,000. The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be: $0. $500,000. $1,100,000. $1,600,000.
Answer:
The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be:
= $0.
Explanation:
a) Data and Calculations:
Transfer from the General Fund to a debt service fund = $1,100,000
Transfer from the General Fund to a special revenue fund = $500,000
Transfer out = $0
b) The transfers of $1,100,000 to the Debt Service Fund and $500,000 to the Special Revenue Fund are Internal Service funds involving governmental activities. They are unlike enterprise funds that reach the control of the government's internal services. In this case, therefore, there is no transfer out, as the transfers were within or internal.
Which of the following products CANNOT be sold BOTH the consumer and industrial markets?
O Pens
O X-Ray Machine
O Microwave
O Water
The X-Ray machine can only be sold to the industrial market
When the sales department needs to hire more staff, the corporate skills inventory system was used to determine if any current employees had the skills needed for the new position. This is an example of :________. .
Answer: Internal recruiting
Explanation:
Internal recruiting is when an organization fills its vacancies from its existing workforce.
In this case, rather than looking for applicants to the position outside the company, the company fills the available position with some of its staff. On the other hand, external recruitment is when the position is filled by outsiders.
Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 721,000 units of basic, 468,000 units of classic, and 180,000 units of deluxe. Bricktan has limited production capacity of 114,000 hours. It can produce 10 units of basic, 8 units of classic, and 4 units of deluxe per hour. Contribution margin per unit is $15 for the basic, $25 for the classic, and $55 for the deluxe. What is the most profitable sales mix for Bricktan Inc.
Answer:
Profitable sales mix :
Deluxe - 180,000 units,
Classic - 58,500 units,
Basic- 365,000 units
Explanation:
When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate the scare resource for production purpose in such a way that it maximizes the contribution per unit of the scare resource.
The labour hours required per unit of scarce resource=
Basic = 1/10 hr= 0.10
Classic =1/8 hr = 0.13
Deluxe= 1/4 hr = 0.25
Basic Classic Deluxe
Contribution per unit 15 25 55
Hour per unit 0.10 0.13 0.25
Contribution per hour 150 200 220
Product Unit Hours used
Deluxe 180,000 180000× 0.25 45,000
Classic 468,000 468,00× 0.13 58,500
Basic 365,000** 365,000×0.10 36,500*
Total hours 140,000
* = 140,000 - 45,000-58500= 36,500 hours
** = 36,500 hours/0.1 hour = 365,000 units
Units to be produced = 36,500/0.10= 365,000 units
Profitable sales mix :
Deluxe - 180,000 units,
Classic - 58,500 units,
Basic- 365,000 units
The average variable costs of a company are equal to $20 per unit produced at its current level of output in the short run. Its average fixed costs are equal to $30 per unit produced. The total costs at this output level are equal to $2,500.
Required:
a. What is the company’s current output level?
b. What are the total variable costs at this output level?
c. What are the total fixed costs?
Answer:
Results are below.
Explanation:
First, we need to calculate the number of units produced:
Number of units= total cost/ average unitary cost
Number of units= 2,500 / (20 + 30)
Number of units= 50 units
Now, the total variable cost:
Total variable cost= 50*20
Total variable cost= $1,000
Finally, the fixed costs:
Fixed cost= 50*30
Fixed cost= $1,500
Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co.
Required:
a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order.
b. Briefly explain the reason why accepting this additional business will increase operating income.
c. What is the minimum price per unit that would produce a positive contribution margin?
Answer:
18000*2
Explanation:
Jonathan has a debt of $3,000 that needs to be repaid with 3 annual equal principal repayments with interest on the outstanding balance. The debt has an annual effective interest rate of 8%. In order to match his payment obligations exactly, Jonathan decides to purchase the following zero coupon bonds. Time to Maturity Par Value 1 year $1,000 2 years $ 800 3 years $ 900 Calculate the number of units of the 3-year bond Jonathan should buy, assuming fractional purchase is possible
Answer:
Jonathan
The number of units of the 3-year bond that Jonathan should buy is:
3.88 or 3 and 22/25 bonds.
Explanation:
a) Data and Calculations:
Present value of debt = $3,000
Annual effective interest rate = 8%
Total future value of the debt with interest = $3,492.30
Equal annual repayment of the debt = $1,164.10 ($3,492.30/3)
Number of 3-year bond that Jonathan should buy = $3,492.30/$900 = 3.88 or 3 and 22/25 bonds
Time to Maturity Par Value
1 year $1,000
2 years $ 800
3 years $ 900
From an online calculator, the total amount to be paid with interest is $3,492.30:
N (# of periods) 3
I/Y (Interest per year) 8
PV (Present Value) 3000
FV (Future Value) 0
Results
PMT = $1,164.10
Sum of all periodic payments $3,492.30
Total Interest $492.30
Answer:
1.2
Explanation:
Given that we are making 3 Equal Principle Payments on a loan of $3000, the principle that we will repay each year will be [tex]\frac{3000}{3} = $1000[/tex].
First Year:
The interest that we will need to repay during the first year will be 3000*.08 which will be $240 dollars of interest, so we will be paying a total of 1000 + 240, or $1240 for the first year reducing the amount due to $2000.
Second Year:
The interest that we will need to repay during the second year will be 2000*.08 which will be $160 of interest, so we will be paying a total of 1000 + 160, or $1160 which will reduce the amount due $1000.
Third Year:
This is the year that we care for. We have a total interest amount of $80, so we will be paying a total of $1080 for the third year.
Given that the par value of the Zero Coupon bond for the third year is $900, we will need [tex]\frac{1080}{900} = 1.2[/tex] coupons for the final year, giving us our answer of 1.2 3-year bonds that Jonathan should buy.
g The liquidity trap refers to the situation where Multiple Choice the Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand. excessive consumer debt limits the growth in consumer spending necessary to bring the economy out of recession. the public debt is so large that federal borrowing drives up interest rates and discourages private sector spending. a financial crisis causes a run on banks and the elimination of billions in excess reserves.
Answer:
The Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand
Explanation:
liquidity trap can be regarded as a case whereby monetary policy becomes ineffective as a result of very low interest rates, and activities of
consumers, whereby consumer will prefer saving their money instead of
investing it in some investment as well as higher-yielding bonds. It should be noted that the The liquidity trap refers to the situation where The Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand
Robert Company, which allocates overhead to production on the basis of machine hours, reported the following data for the period just ended:
Actual units produced: 12,000
Actual variable overhead incurred: $77,770
Actual machine hours worked: 18,800
Standard variable overhead cost per machine hour: $4.50
Robert estimates that it takes 1.5 hours to manufacture a completed unit.
Required:
Compute all standards & variances. Prepare all journal entries using standard costing.
Answer:
Variable overhead rate variance = Actual Variable overhead incurred - Actual Hours of Input, at Standard Rate
Variable overhead rate variance = ($4.5*18800 - $77,700)
Variable overhead rate variance = $6,900 Favorable
Variable overhead efficiency variance = Actual Hours of Input, at Standard Rate - Standard Hours allowed for Actual Output at Standard Rate
Variable overhead efficiency variance = (12000*1.5 - $18,800)*$4.5 =
Variable overhead efficiency variance = $3,600 Unfavorable
Variable overhead cost variance = Actual Variable overhead incurred - Standard Hours allowed for Actual Output at Standard Rate
Variable overhead cost variance = (12000*1.5*$4.5) - $77,700
Variable overhead cost variance = $3,300 Favorable
On July 1, 2018, Fred City ordered $1,500 of office supplies.They were to be paid for out of the general fund. Entry under:
Governmental fund financial statements Government-wide financial statements
A) Dr. Encumbrances – Office supplies No entry
Cr. Encumbrances outstanding
B) No entry No entry
C) Dr. Encumbrances outstanding Dr. Encumbrances – Office supplies
Cr. Encumbrances – Office supplies Cr. Encumbrances outstanding
D) No entry Dr. Encumbrances outstanding
Cr. Encumbrances – Office supplies
a. Option 1
b. Option B.
c. Option C.
d. Option D.
Answer:
A) Dr. Encumbrances – Office supplies No entry
Cr. Encumbrances outstanding
Explanation:
The journal entry is given below;
For Governmental fund financial statements
Encumbrances-Office Supplies $1,500
To Encumbrances Outstanding $1,500
(Being Office Supplies ordered is recorded)
For Government-wide financial statements
No journal entry is required as under the accrual accounting, no entry should be recorded until the transaction does not arise
Therefore the option a is correct
The following information pertains to Sheridan Video Company.
1. Cash balance per bank, July 31, $7,943.
2. July bank service charge not recorded by the depositor $37.
3. Cash balance per books, July 31, $7,964.
4. Deposits in transit, July 31, $1,840.
5. Bank collected $1,240 note for Sheridan in July, plus interest $45, less fee $29. The collection has not been recorded by Sheridan, and no interest has been accrued.
6. Outstanding checks, July 31, $600.
Required:
Prepare a bank reconciliation at July 31.
Answer:
Bank reconciliation for the month ended July 31
Particulars Amount
Balance as per bank $7,943
Add: Deposit in transit $1,840
Less: Outstanding checks $600
Adjusted balance as per bank $9,183
Balance as per books $7,964
Add: Direct collections by bank $1,256
($1,240 + $45 - $29)
Less: Bank charges $37
Adjusted balance as per books $9,183
Pizza ltd. leased equipment from Tasty Company under a four-year lease requiring equal annual payments of sh.86, 038, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no residual value. If Pizza ltd.’s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pizza ltd.) is 8%, what is the amount recorded for the leased asset at the lease inception?
Answer:
Sh. 300,001.60
Explanation:
Note: Missing word has been attached
Particulars Amount
Annual payments 86,038
x PV Annuity due 8%, 10 periods 3.48685
Amount recorded for the leased asset 300,001.60
Fleming Company provided the following information on selected transactions during 2021: Dividends paid to preferred stockholders $ 500,000 Loans made to affiliated corporations 1,400,000 Proceeds from issuing bonds 1,600,000 Proceeds from issuing preferred stock 2,100,000 Proceeds from sale of equipment 800,000 Purchases of inventories 2,400,000 Purchase of land by issuing bonds 600,000 Purchases of treasury stock 1,200,000 The net cash provided (used) by financing activities during 2021 is
Answer:
$2,000,000
Explanation:
Calculation to determine what The net cash provided (used) by financing activities during 2021 is
Using this formula
Net cash provided (used) by financing activities=(Dividends paid to preferred stockholders)+Proceeds from issuing bonds+Proceeds from issuing preferred stock+(Purchases of treasury stock )
Let plug in the formula
Net cash provided (used) by financing activities=($ 500,000) +$1,600,000 + $2,100,000 + ($1,200,000)
Net cash provided (used) by financing activities=$2,000,000
Therefore The net cash provided (used) by financing activities during 2021 is $2,000,000
A company just starting business made the following four inventory purchases in June: June 1 150 units $ 390 June 10 200 units 585 June 15 200 units 630 June 28 150 units 495 $2,100 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is
Answer:
Ending inventory cost= $599
Explanation:
Giving the following information:
June 1 150 units $ 390 (2.6)
June 10 200 units 585 (2.93)
June 15 200 units 630 (3.15)
June 28 150 units 495 (3.3)
Ending inventory in units= 200
To calculate the ending inventory, first, we need to calculate the average price:
Average price= (2.6 + 2.93 + 3.15 + 3.3) / 4= $2.995
Now, the ending inventory:
Ending inventory= 2.995*200
Ending inventory= $599
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For the current fiscal year, Purchases were $350,000, Purchases Returns and Allowances were $5,000 and Freight In was $29,000. If the
beginning merchandise inventory was $210,000 and the ending merchandise inventory was 595,000, the Cost of Goods Sold is:
Answer:
212,000
Explanation:
You are the manager of a local bank. Due to unstable financial conditions, savers are worried that your bank may fail. When they show up in large numbers to withdraw their savings, you find that you do not have enough cash to meet the obligations. Where can you turn for a loan if no other bank will lend to you? The stock market The bond markets The discount window The market for overnight loans
Answer:
The discount window
Explanation:
As we can see that there is a liquidity problem for the bank as it has not enough funds to payoff back to the depositors. Also No other bank is ready to lend.
The discount window would be the monetary policy instrument that controlled by the central bank in which it permits the institutions that they are eligible for borrow the money so that they could meet their shortage and this money would be lend for short term duration by the central bank
Therefore it is a discount window
1. Cullumber Cosmetics acquired 13% of the 301,200 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2020. On June 30, Elite declared and paid a $70,100 dividend. On December 31, Elite reported net income of $226,500 for the year. At December 31, the market price of Elite Fashion was $15 per share.
2. Bramble Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey’s 32,700 outstanding shares of common stock at a total cost of $10 per share on January 1, 2019. On June 15, Kasey declared and paid a cash dividend of $31,600. On December 31, Kasey reported a net income of $116,000 for the year.
Required:
Prepare all the necessary journal entries for 2019 for Cullumber Cosmetics.
Answer:
1. 18-Mar
Dr Available for Sale Securities $548,184
Cr Cash $548,184
30-Jun
Dr Cash $9,113
Cr Dividend Revenue $9,113
31-Dec
Dr Securities Fair Value Adjustment $39,156
Cr Unrealized Holding Gain $39,156
2.1-Jan
Dr Investmeht in Nadal Corp. $81,750
Cr Cash $81,750
15-Jun
Dr Cash $7,900
Cr Investment in Nadal Corp. $7,900
31-Dec
Dr Investment in Nadal $29,000
Cr Revenue from Investment in Sub $29,000
Explanation:
1.Preparation of all the necessary journal entries for 2019
18-Mar
Dr Available for Sale Securities $548,184
Cr Cash $548,184
(13%*301,200*$14)
(To purchase 10% of Ramirez Fashion)
30-Jun
Dr Cash $9,113
Cr Dividend Revenue $9,113
(13%$70,100)
(To record a 13% dividend revenue $70,100)
31-Dec
Dr Securities Fair Value Adjustment $39,156
Cr Unrealized Holding Gain $39,156
[($15-$14)*13%*301,200]
(To adjust securities to FMV in an Equity account)
2.1-Jan
Dr Investmeht in Nadal Corp. $81,750
Cr Cash $81,750
(25%*32,700*$10)
(To purchase 25% of Nadal Corp.)
15-Jun
Dr Cash $7,900
Cr Investment in Nadal Corp. $7,900
(25%$31,600)
(To record cash dividend of $31,600)
31-Dec
Dr Investment in Nadal $29,000
Cr Revenue from Investment in Sub $29,000
(25%*$116,000)
(To record 25% revenue of $116,000 from Nada)
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 825,000 $ 550,000 $ 275,000 Variable expenses 495,000 385,000 110,000 Contribution margin 330,000 165,000 165,000 Traceable fixed expenses 156,000 78,000 78,000 Segment margin 174,000 $ 87,000 $ 87,000 Common fixed expenses 69,000 Net operating income $ 105,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.)
Answer:
Piedmont Company
1. Companywide break-even point in dollar sales
= $562,500
2. Break-even point in dollar sales for the North region
= $260,000
3. Break-even point in dollar sales for the South region
= $130,000
Explanation:
a) Data and Calculations:
Contribution format segmented income statement:
Total Company North South
Sales $ 825,000 $ 550,000 $ 275,000
Variable expenses 495,000 385,000 110,000
Contribution margin 330,000 165,000 165,000
Traceable fixed expenses 156,000 78,000 78,000
Segment margin 174,000 $ 87,000 $ 87,000
Common fixed expenses 69,000
Net operating income $ 105,000
Contribution margin ratio = Contribution margin/Sales
= $330,000/$825,00 = 0.40
For the north = $165,000/$550,000 = 0.30
For the south = $165,000/$275,000 = 0.60
Break-even point in dollar sales = Fixed cost/Contribution margin ratio
Companywide break-even point in dollar sales = $225,000/0.40
= $562,500
Break-even point in dollar sales for the North region = $78,000/0.30
= $260,000
Break-even point in dollar sales for the South region = $78,000/0.60
= $130,000
As a policy option for regulating natural monopoly, average (total) cost pricing is attractive because Select one: a. the resulting output exceeds that which would occur in a perfectly competitive industry. b. the losses that occur are a sign that consumers are not harmed by the firm's exercise of market power. c. it ensures productive efficiency. d. the regulated firm will always break even.
Answer: c. it ensures productive efficiency.
Explanation:
The average cost pricing is used by the government in order to control the price that may be charged by the monopolist.
With the average cost pricing, monopolists are forced to reduce the price that twhy charge for a product to a point whereby the average total cost of the firm and the market demand curve will intersect.
This is vital as it brings about productive efficiency, increase production and also the reduction in the price of a good.
Therefore, the correct option is C "it ensures productive efficiency".