Answer:
$435.63
Explanation:
Calculation to determine How much interest will you owe at the end of the first year
First step is to calculate the Face Value of a lump sum, After the first six months
FV = $5,100 [1 + (.004 / 12)]^6
FV = $5,110.21
Second step is to calculate The Face Value of a lump sum in another six months
FV = $5,110.21[1 + (.161 / 12)]^6
FV = $5,535.63
Now let calculate the Interest
Interest = $5,535.63 − $5,100
Interest = $435.63
Therefore How much interest will you owe at the end of the first year is $435.63
hi guys, can anoye one tell me the rigth answer? I cant find the answer anywhere. please tell the correct answer.
Answer:
Ben-ha-dad.
Explanation:
Answer:
The answer is Ben-ha-dad
it's like Ben? huh dad
Graham, Inc.'s April bank statement shows an April 30 balance of $5,120. Prior to reconciliation, its books show a cash balance of $5,510. ThIs information pertains to Graham, Inc.: Deposits in transit $800; Checks outstanding $465; Bank service charge $10; Error in Graham's records understating cash disbursement $180; Check of another company charged erroneously against Graham's bank account $115; Bank statement shows bank collected a note receivable and interest income for Graham $250. The reconciled cash balance at April 30 on the bank reconciliation should be:
Answer:
$5,570
Explanation:
The purpose of a bank reconciliation statement is to reconcile the difference between Cash Book balance and Bank Statement balance. Also it is used to check accuracy of Cash Book and the accuracy of Bank Statement.
Graham, Inc.'s April bank reconciliation statement is prepared as :
Graham, Inc.
Bank reconciliation statement as at April 30
Balance as per Bank Statement $5,120
Add outstanding lodgments $800
Add back error at the bank $115
Less unpresented checks ($465)
Balance as per Cash Book $5,570
therefore,
The reconciled cash balance at April 30 on the bank reconciliation should be $5,570.
2.1.3. Briefly explain the term Gross Domestic Product.
Answer:
it is the total value of goods produced and services provided in a country during one year.
Explanation:
The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated Sales $510,000 Sales 567,933 Purchases 294,820 Ending Inventory* 10% Administrative Salaries 50,360 Marketing Expense** 5% Sales Commissions 2% Rent Expense 7,400 Depreciation Expense 1,000 Utilities 2,600 Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes Sales are expected to increase each month by 10%. Prepare a budgeted income statement. Round your answers to the nearest dollar. Italian Exports, Inc. Budgeted Income Statement For the Month Ending Mar. 31, 2020 Sales $fill in the blank 2 567,933 Cost of Goods Sold Beginning Inventory $fill in the blank 4 0 Purchases fill in the blank 6 294,820 Cost of Goods Available for Sale $fill in the blank 8 294,820 Ending Inventory fill in the blank 10 29,482 Cost of Goods Sold $fill in the blank 12 265,338 Gross Profit fill in the blank 14 302,595 Operating Expenses $fill in the blank 16 fill in the blank 18 fill in the blank 20 fill in the blank 22 fill in the blank 24 fill in the blank 26 Total Operating Expenses $fill in the blank 27 $fill in the blank 29 fill in the blank 31 $fill in the blank 33
Answer:
Italian Exports, Inc.
Italian Exports, Inc.
Budgeted Income Statement
For the Month Ending Mar. 31, 2020
Sales $ 567,933
Cost of Goods Sold
Beginning Inventory $0
Purchases 294,820
Cost of Goods Available for Sale $294,820
Ending Inventory (10%) 29,482
Cost of Goods Sold $265,338
Gross Profit 302,595
Operating Expenses:
Marketing Expense (5%) 25,500
Sales Commissions (2%) 11,359
Rent Expense 7,400
Depreciation Expense 1,000
Utilities 2,600
Total Operating Expenses $47,859
Operating income $254,736
Taxes (15% of next month sales) 84,150
Net Income $170,586
Explanation:
a) Data and Calculations:
Estimated Sales $510,000
Sales 567,933
Purchases 294,820
Ending Inventory* 10%
Administrative Salaries 50,360
Marketing Expense** 5% of $510,000 = $25,500
Sales Commissions 2% of $567,933 = $11,359
Rent Expense 7,400
Depreciation Expense 1,000
Utilities 2,600
Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes
Estimated sales next month = $561,000 (1.1 * $510,000)
Taxes = $84,150 (15% of $561,000)
In 2014, Lena assigned a paid-up whole life insurance policy to an Irrevocable Trust for the benefit of her three children. Lena died in 2018, and the face value of the whole life insurance policy of $2,000,000 was paid to the Irrevocable Trust. Regarding this transfer, how much is included in Lena’s gross estate at her death? A. $0 B. $45,000 C. $2,000,000 D. $1, 955,000
Answer: A. $0
Explanation:
By current tax rules, any transfers of life insurance policies within three years of the death of the owner of the policy should be included in their gross estates.
As Lena's policy was transferred in 2014 which was 4 years before he death in 2018, it does not qualify to be included in the gross estate so the answer is $0.
Answer:
A. $0
Explanation:
Hope this helps
Journal Entries, T-Accounts Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred: Materials were purchased on account for $45,670. Materials totaling $40,990 were requisitioned for use in producing various jobs. Direct labor payroll for the month was $22,400 with an average wage of $14 per hour. Actual overhead of $9,020 was incurred and paid in cash. Manufacturing overhead is charged to production at the rate of $5.50 per direct labor hour. Completed jobs costing $58,000 were transferred to Finished Goods. Jobs costing $59,000 were sold on account for $73,750. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs. Beginning balances as of July 1 were: Materials Inventory $1,200 Work-in-Process Inventory 3,400 Finished Goods Inventory 2,630 Required: Message
Answer: See attachment
Explanation:
a. The journal entries for the preceding events have been attached. Note that for (e), work in process inventory was calculated as:
= $22400 × 5.5/14 = $8800
b. The ending balance for:
Material inventory = 1200 + 44670 - 40990 = 5880
Work in process inventory = 3400 + 40990 + 22400 + 8800 - 58000 = 17590
Overhead control = 9020 - 8800 = 220
Finished goods inventory = 2630 + 58000 - 59000 = 1630
a teammate tells you that you tend to take over shared projects. you've gotten this feedback from other too. what should you say? A I wish you would have mentioned this during projects. please be sure to do so on the next one. B I'm sorry you're feeling left out, I'll be sure to give you more to do on the next one. C I'm sorry maybe we can work together to divide our responsibility on the next one. D I've gotten this feedback before, I just like things done a certain way. E I'm used to leading projects, so I usually just take over without even realizing it
Answer:
C
Explanation:
even if it's unintentional we should apologize professionally
Corporations are becoming multinational not only in the scope of their business activities but also in their capital structure(.) Group of answer choices by raising funds from domestic as well as government sources. This trend reflects not only a conscious effort on the part of firms to raise the cost of capital by international sourcing of funds but also the ongoing liberalization and deregulation of international financial markets that make them accessible for many firms. by raising funds from foreign as well as domestic sources. by raising funds from foreign as well as domestic sources. This trend reflects not only a conscious effort on the part of firms to raise the cost of capital by international sourcing of funds, but also the ongoing liberalization and deregulation of international financial markets that make them accessible for many firms.
Answer:
by raising funds from foreign as well as domestic sources.
Explanation:
Multinational corporations can be regarded as
large companies which has headquarter in a country having operations in other countries. Their trait is that they are incorporated in a country while running their business in other countries. It should be noted that Corporations are becoming multinational not only in the scope of their business activities but also in their capital structure by raising funds from foreign as well as domestic sources. The trend showcase a conscious effort of the firm to gather cost of capital through international sourcing of funds also ongoing liberalization as well as deregulation regarding international financial markets which allows firms to have accessibility.
Phoebe is meeting with a client to present her ideas. What is recommended as the best way to present her ideas to the client?
Show at least two to three different comps.
Describe your ideas over the phone
Send one comp over email
Show the finished product.
because the 2 is describe which is good so they can understand itthe 3 is good to because ypu can send it on ther email that they can see it
hope it help :)
capital city of Morocco
Answer:Rabat
Explanation:
Answer:
Rabat is the capital city of Morocco.
This is your first week in your new job at Safety Zone, a leading producer of IT modeling software. Your prior experience with a smaller competitor gave you an edge in landing the job, and you are excited about joining a larger company in the same field.
So far, all is going well and you are getting used to the new routine. However, you are concerned about one issue. In your initial meeting with the IT manager, she seemed very interested in the details of your prior position, and some of her questions made you a little uncomfortable. She did not actually ask you to reveal any proprietary information, but she made it clear that Safety Zone likes to know as much as possible about its competitors. Thinking about it some more, you try to draw a line between information that is OK to discuss, and topics such as software specifics or strategy that should be considered private.
This is the first time you have ever been in a situation like this. How will you handle it?
Answer:
Explanation:
The best thing to do in this situation would be to simply answer the questions to the best of your ability without divulging any proprietary information of your previous employer. This will allow you to be honest and maintain a legal boundary between you and your previous employer. Since the hiring manager has not specifically asked you for such proprietary information you should be fine if you think carefully about what you are saying in your answers. Aside from this, staying firm with your answers and protecting the integrity of your previous employers proprietary information shows to your new employer that you are trustworthy and are able to keep such information safe and to yourself.
A commercial cleaning company spends an average of $500 per year, per customer, in supplies, wages, and account maintenance. An average customer generates $1,000 in revenue per year. Assuming a discount rate of 12% and an annual retention rate of 80%. What would BEST estimate for the lifetime value of an average customer using the simplified customer lifetime value (CLV) equation?
Answer:
$1,250
Explanation:
The computation is shown below:
Customer life time value = Gross contribution margin × (yearly retention rate ÷ 1 + yearly discount rate - yearly retention rate)
= $500 × (0.8 ÷ 1 + 0.12 - 0.80)
= $400 ÷ 0.32
= $1,250
The gross contribution margin would be
= $1,000 - $500
= $500
hence, the estimate for the lifetime value os $1,250
Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May:
Molding Department Grinding Department Finishing Department
Direct materials $12,000 $5,300 $8,000
Direct labor 10,000 8,500 12,000
Applied overhead 17,000 15,000 11,000
Required:
a. Calculate the costs transferred out of each department.
b. Prepare the journal entries corresponding to these transfers.
Answer:
A. Molding Department $39,000
Grinding Department $69,800
Finishing Department $100,800
B. Dr Work in Process-Grinding $ $39,000
Cr Work in Process-Molding $39,000
Dr Work in Process-Finishing $69,800
Cr Work in Process-Grinding $69,800
Dr Finished Goods $100,800
Cr Work in Process-Finishing $100,800
Dr Work in Process-Grinding $30,800
Cr Materials $5,300
Cr Payroll 8,500
Cr Overhead Control $15,000
Explanation:
A. Calculation to determine the costs transferred out of each department.
Molding Department Grinding Department Finishing Department
Direct materials $12,000 $5,300 $8,000
Add Direct labor 10,000 8,500 12,000
Add Applied overhead 17,000 15,000 11,000
Total Cost Added $39,000 $30,800 $31,000
Costs transferred in $0 $39,000 $69,800
($39,000+$30,800=$69,800)
Costs transferred out
$39,000 $69,800 $100,800
($30,800+$39,000=$69,800)
($31,000+$69,800=$100,800)
B. Preparation of the journal entries corresponding to these transfers.
Dr Work in Process-Grinding $ $39,000
Cr Work in Process-Molding $39,000
Dr Work in Process-Finishing $69,800
Cr Work in Process-Grinding $69,800
Dr Finished Goods $100,800
Cr Work in Process-Finishing $100,800
Dr Work in Process-Grinding $30,800
Cr Materials $5,300
Cr Payroll 8,500
Cr Overhead Control $15,000
Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $7,500. The booth will be open 30 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $150 per package. She will continue to sell the existing product, EZRecords, which costs $100 per package. Ms. Ortega believes that the salesperson will spend approximately 20 hours selling EZRecords and 10 hours marketing ProOffice.
1) Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 80 units of EZRecords and 50 units of ProOffice. (Round "Cost per unit" to 2 decimal places.)
2) Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 200 units of EZRecords and 100 units of ProOffice.
(c) Explain why the cost per unit figures calculated in Requirement a are different from the amounts calculated in Requirement b. Also explain how the differences in estimated cost per unit will affect pricing decisions.
Answer:
Hannah Ortega
Product lines ProOffice EZRecords
1a. Total costs $10,000 $13,000
b. Cost per unit $200.00 $162.50
2a. Total costs $17,500 $25,000
b. Cost per unit $175.00 $125.00
c) The total costs under the two requirements were different because of the larger units sold in requirement two. These larger units shared the total costs, reducing the cost per unit drastically.
Explanation:
a) Data and Calculations:
Fixed costs for trade show = $7,500
Fixed cost per hour = $250 ($7,500/30)
Product lines ProOffice EZRecords
Cost per package $150 $100
Units sold 50 80
Hours spent 10 hrs 20 hrs
Fixed costs $2,500 $5,000
Variable costs 7,500 8,000
Total costs $10,000 $13,000
Cost per unit $200.00 $162.50
Total cost
Product lines ProOffice EZRecords
Units sold 100 200
Variable costs $15,000 $20,000
Fixed costs 2,500 5,000
Total costs $17,500 $25,000
Cost per unit $175.00 $125.00
c) The total costs under the two requirements were different because of the larger units sold in requirement two. These larger units shared the total costs, reducing the cost per unit drastically.
Most consumers and investors today want the firms they do business with to look beyond just the profit motive. In fact, they want firms that behave legally and ethically while also giving back to their communities via philanthropic activities. The framework that attempts to reconcile these wants is known as
Answer:
corporate social responsibility.
Explanation:
In Business management, social responsibility can be defined as an organization's obligation to act in a manner that benefits and adds significant value to the society, usually it has its business operations.
Hence, in addition to making profits and maximizing shareholders, organizations are required to lessen negative environmental impact or degradation and provide social amenities such as pipe-borne water, electricity, roads etc. It is also referred to as corporate social responsibility (CSR).
Generally, most consumers and investors today want the firms they do business with to look beyond just the profit motive. In fact, they want firms that behave legally and ethically while also giving back to their communities via philanthropic activities. Thus, the framework that attempts to reconcile these wants is known as corporate social responsibility.
Behavioral segmentation addresses the knowledge of, use of, response to, and attitude toward a product. Which of these is an example of behavioral segmentation? Group of answer choices a retail shoe store targeting customers within a geographic twenty-mile radius a deodorant company targeting boys between the age of 12–18 an airline targeting customers with over 500k miles of travel on its airline
Answer:
an airline targeting customers with over 500k miles of travel on its airlineExplanation:
Note, the focus of behavioral segmentation is to identify and separate the marketing strategy used on clients/customers based on mainly their behavior, and not on demography (age, gender, etc) or geography.
Hence, the best scenario from the above options is that of an airline that targets customers with over 500k miles of travel on its airline. In other words, their traveling behavior (distances covered) is the basis why they are targeted, without consideration of demography or their geography.
Determine if the statement is true or false.
A design must appeal to people outside of the target audience to be considered successful.
True
False
Answer:
It is false don't be confused I took the Exam and it resulted false.
Explanation:
You just bought a motorcycle for $8,000. You plan to ride the motorcycle for two years, and then sell it for $3,200. During this two-year period, you expect to ride the motorcycle 10,000 miles each year, and you expect the motorcycle to get 50 miles per gallon of gasoline. The annual cost of insurance is $960, registration costs are $80 (good for two years), and the price of gasoline is $2.50 per gallon. During this same two-year period, you will need to service your motorcycle five times, at $240 per service check, and obtain five oil changes. Each oil change costs $35. You will also need to replace your tires once during this two-year period, for a total cost of $400.
a. Calculate the total fixed cost, total variable cost, and cost per mile for the two-year period, .
b. Suppose you want to lower the cost per mile. You should focus on:
i. variable costs, because they represent a majority of the total costs.
ii. fixed costs, because they must be paid.
iii. variable costs, because they can be avoided.
iv. fixed costs, because they represent a majority of the total costs.
Answer:
Total fixed costs = $6,800
b. Total variable cost = $2,775
c. = $0.48 per mile
2. iii variable costs, because they can be avoided.
Explanation:
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
Hourly wage costs and payments for production inputs are variable costs
Variable costs are costs that vary with production
If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.
Depreciation + Insurance + cost of registration
Depreciation = Cost - salvage = 8,000 - 3,200 = $4,800
Insurance = 960 x 2 = 1920
Total fixed cost = 4,800 + 1920 + 80 = $6,800
Total variable cost
Gasoline + Service + Oil change + tire replacement
Gasoline = 10,000/ 50 = 2000 x 2.5 x 2 = 1000
= (1000 + (240 * 5) + (35 * 5) + 400
= 1,000 + 1,200 + 175 + 400 = $2,775
Total cost / Number of miles
= (6,800 + 2,775) / (10,000 * 2 years)
= $0.48 per mile
Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system.
The following transactions have been selected for analysis:
a. Sold merchandise for cash (cost of merchandise $160,750) $294,300
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for a cash refund (original cost of merchandise $930) 1,730
c. Sold merchandise (costing $13,050) to a customer on account with terms 2/10, n/30 29,000
d. Collected half of the balance owed by the customer in (c) within the discount period 14,210
e. Granted a partial allowance relating to credit sales that the customer in (c) had not yet paid 1,980
Required:
1. Compute Sales Revenue, Net Sales, and Gross Profit for Campus Stop
a merchandiser's multistep income statement.
2. Compute the gross profit percentage.
Answer:
Campus Stop, Inc.
Partial Income Statement
Sales revenue $323,300
Sales returns ($1,730)
Sales discounts and allowances ($2,270)
Net sales $319,300
Cost of goods sold ($172,870)
Gross profit $146,430
Gross profit margin = $146,430 / $319,300 = 45.86%
RCS, Inc. Gross fixed assets 284,950 Inventory 136,500 Accrued expenses 11,850 Accumulated depreciation 82,310 Notes payable 32,570 Preferred stock 8,000 Retained earnings 89,280 Current portion of L-T debt 4,080 Long-term debt 134,300 Accounts receivable 105,770 Additional paid-in capital 71,600 Accounts payable 50830 Common stock ($0.20 par) 60,000 Cash 17,600 Referring to the above balance sheet accounts for RCS, Inc. for the year ending Dec 31, 2016, the number of common shares issued by the company is closest to:_____.
a. 658,000
b. 12,000
c. 300,000
d. 26,320
Answer:
The correct option is c. 300,000.
Explanation:
The number of common shares issued by the company can be calculated as follows:
Common stock each at par =$0.20
Common stock total value at par = $60,000
Number of common shares issued = Common stock total value at par / Common stock each at par = $60,000 / $0.20 = 300,000
Therefore, the number of common shares issued by the company is closest to: c. 300,000.
Why is pillar content important
Content pillars will help you get clarity on your niche, while also building trust and helping your audience grow faster. There's another huge benefit: By creating content your target audience wants, they will spend longer on your site's pages and engage with your posts.
Certify Completion Icon Tries remaining:3 Suppose that you and a friend are playing cards and you decide to make a friendly wager. The bet is that you will draw two cards without replacement from a standard deck. If both cards are diamonds, your friend will pay you $296. Otherwise, you have to pay your friend $17. Step 1 of 2 : What is the expected value of your bet? Round your answer to two decimal places. Losses must be expressed as negative values.
Answer:
The expected value of the bet is –$0.95.
Explanation:
Number of cards in a standard deck = 52
Number of diamonds in a standard deck = 13
The probability (P) that the two cards that will be drawn without replacement will be diamonds is therefore as follows:
P = (13 / 52) * (12 / 51) = 0.0588
The probability (P) that the two cards that will be drawn without replacement will NOT be diamonds is also as follows:
1 – P = 1 – 0.0588
1 – P = 0.9412
Amount your friend will pay you if both cards are diamonds = $296
Amount you will pay your friend if both cards are NOT diamonds = -$17 (Note that this is negative since it is a loss)
Expected value of the bet = (P * $296) + ((1 – P) * ($-17)) = (0.0588 * $256) – (0.9412 * 17) = –$0.95
Shipping cost at Junk Food Imports is a mixed cost with variable and fixed components. Past records indicate total shipping cost was $18,000 for 16,000 pounds shipped and $22,500 for 22,000 pounds shipped. Assuming that this activity is within the relevant range, if the company plans to ship 18,000 pounds next month, the expected shipping cost is:
Answer:
$18,500
Explanation:
Calculation to determine what the expected shipping cost is:
First step is to calculate the Variable using this formula
Variable =Change in total cost /change in units
Let plug in the formula
Variable=(22,500-18,000)/(22,000-16,000)
Variable=$0.75 per pound
Now let calculate the expected shipping cost
Expected shipping cost=$0.75 per pound *18,000 pound
Expected shipping cost=$18,500
Therefore The Expected shipping cost is $18,500
You're considering a project with an initial cost of $6400, what is the payback period for this project if the cash inflows are $900, $1350,$2800, $1350 & $500 a year over the next five years
A lumber company purchases and installs a wood chipper for $204,000. The chipper is classified as MACRS 7-year property. Its useful life is 10 years. The estimated salvage value at the end of 10 years is $25,000. Using MACRS depreciation, compute the first-year depreciation.
Answer:
the first year depreciation using MACRS depreciation is $28,580
Explanation:
The computation of the first year depreciation using MACRS depreciation is given below:
Here the depreciation rate is 14.29% for the first year
And, the cost of the wood chipper is $204,000
So, the first year depreciation expense is
= $204,000 × 14.29%
= $28,580
Hence the first year depreciation using MACRS depreciation is $28,580
Mrs. Jonas believes strongly that it is important that workers' rights be respected, and that one of the more important ways of doing this is to ensure that all workers be properly documented. She is supervising a contracting company that is building a new warehouse for her company. While doing this she discovers that many of the workers employed by the contractor are undocumented aliens working for well below minimum wage. In this situation Mrs. Jonas has a(n) ________ that is in conflict with a(n) ________.
Answer: behavior; attitude
Explanation:
From the situation given in the question, we can infer that Mrs. Jonas has a behavior that is in conflict with an attitude.
This can be seen in the information given that Mrs. Jonas believes strongly about the importance of workers' rights be respected, which can be done through proper documentation but then while supervising a contracting company, she then discovers that many of the workers employed by the contractor are undocumented aliens that were working for well below minimum wage.
Please help me with this question
Maturity Dates of Notes Receivable Determine the maturity date and compute the interest for each of the following notes: (Use 360 days for interest calculation. Round to the nearest dollar.)
Date of Note Principal Interest Rate Term
a. August 5 $6,000 8% 130 days
b. May 10 16,800 7% 100 days
c. October 20 24,000 9% 55 days
d. July 06 4,500 10% 70 days
e. September 15 9,000 8% 85 days
Maturity Date
Month Day Interest
a. AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary Answer $Answer
b. AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary Answer Answer
c. AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary Answer Answer
d. AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary Answer Answer
e. AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary Answer Answer
Answer:
Maturity Dates and Interests of Notes Receivable:
Date of Note Principal Interest Term Maturity Date
Rate Month Day Interest
a. August 5 $6,000 8% 130 days December 13 $173.33
b. May 10 16,800 7% 100 days August 18 326.67
c. October 20 24,000 9% 55 days December 14 330.00
d. July 06 4,500 10% 70 days September 14 87.50
e. September 15 9,000 8% 85 days December 9 170.00
Total $60,300 $1,087.50
Explanation:
a) Data and Calculations:
Date of Note Principal Interest Term Maturity Date
Rate Calculations
a. August 5 $6,000 8% 130 days Dec. 13(26+30+31+30+13)
b. May 10 16,800 7% 100 days Aug. 18 (21+30+31+18)
c. October 20 24,000 9% 55 days Dec. 14 (11+30+14)
d. July 06 4,500 10% 70 days Sept. 14 (25+31+14)
e. September 15 9,000 8% 85 days Dec. 9 (15+31+30+9)
Calculation of Interests:
a. = $173.33 ($6,000 * 8% * 130/360)
b. = $326.67 ($16,800 * 7% * 100/360)
c. = $330.00 ($24,000 * 9% * 55/360)
d. = $87.50 ($4,500 * 10% * 70/360)
e. = $170 ($9,000 * 8% * 85/360)
At the end of the current year, using the aging of receivable method, management estimated that $18,000 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $450. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Answer:
Dr Bad Debt Expense $18,450
Cr Allowance for Doubtful Accounts
$18,450
Explanation:
Preparation of the appropiate adjusting journal entry that the company should make at the end of the current year to record its estimated bad debts expense
Dr Bad Debt Expense $18,450
Cr Allowance for Doubtful Accounts
$18,450
($18,000+Debit balance$450)
(Being to record estimated bad debts expense)
Tangshan Mining Company must choose its optimal capital structure. Currently, the firm has a 40 percent debt ratio and the firm expects to generate a dividend next year of $4.89 per share and dividends are expected to grow at a constant rate of 5 percent for the foreseeable future. Stockholders currently require a 10.89 percent return on their investment. Tangshan Mining is considering changing its capital structure if it would benefit shareholders. The firm estimates that if it increases the debt ratio to 50 percent, it will increase its expected dividend to $5.24 per share. Because of the additional leverage, dividend growth is expected to increase to 6 percent and this growth will be sustained indefinitely. However, because of the added risk, the required return demanded by stockholders will increase to 11.34 percent. (a) What is the value per share for Tangshan Mining under the current capital structure
Answer:
Tangshan Mining Company
The value per share for Tangshan Mining under the current capital structure is:
= $44.90
Explanation:
a) Data and Calculations:
Debt ratio = 40%
Equity ratio = 60% (100 - 40)
Expected dividend per share next year = $4.89
Expected dividend growth rate = 5%
Stockholders' required rate of return = 10.89%
New capital structure:
Estimated debt ratio = 50%
Estimated equity ratio = 50% (100 - 50)
Projected dividend under new capital structure = $5.24
Projected dividend growth rate = 6%
Projected stockholders' required rate of return = 11.34%
Under current capital structure:
Value per share = Dividend/Required rate of return
= $44.90 ($4.89/10.89%)