Answer:
Johnstone should value the equipment at $40,326.29.
Explanation:
To determine this, the present value of the five annual installments of $8,000 is first calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value of the five annual installments =?
P = Annual payment = $8,000
r = interest rate = 10%, or 0.10
n = number of years = 5
Substitute the values into equation (1) to have:
PV = $8,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10)
PV = $8,000 * 3.79078676940845
PV = $30,326.29
Therefore, the present value of the five annual installments of $8,000 is approximately $30,326.29.
As result of this:
Value the equipment = Payment on the purchase day + present value of the five annual installments = $10,000 + $30,326.29 = $40,326.29
Therefore, Johnstone should value the equipment at $40,326.29.
A restaurant manager wanted to get a better understanding of the tips her employees earn, so she decided to record the number of patrons her restaurant receives over the course of a week, as well as how many of those patrons left tips of at least 15%. The data she collected is in the table below.
Day Mon. Tue. Wed Thu. Fri Sat Sun.
Patrons 126 106 103 126 153 165 137
Tippers 82 87 93 68 91 83 64
Which day of the week has the lowest experimental probability of patrons tipping at least 15%?
a. Sunday
b. Saturday
c. Friday
d. Thursday
Answer:
a. Sunday
Explanation:
Probability ranges from 0-1. 0 being the least chance and one being completely sure.
The probability of receiving a tip of at least 15% for the different days is as follows
Monday : 82/126 = 0.65
Tuesday: 87/106= 0.82
Wednesday: 93/103= 0.90
Thursday : 68/126 = 0.54
Friday :91/153= 0.59
Saturday: 83/156 = 0.53
Sunday: 64/137= 0.46
The day with the lowest probability is Sunday.
Answer:
A. Sunday
Explanation:
I got it right on edge :)
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $308,000 and in Allowance for Uncollectible Accounts of $510 (credit) before any adjustments. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. Bad debt expense for the year should be: Multiple Choice $9,750. $8,730. $7,831. $9,240.
Answer:
$8,730
Explanation:
accounts receivable balance = $308,000
allowance for doubtful accounts = $510
the balance for the allowance for doubtful account should be $308,000 x 3% = $9,240
that means that it must increase by $9,240 - $510 = $8,730
the adjusting journal entry should be:
Dr Bad debt expense 8,730
Cr Allowance for doubtful accounts 8,730
You are meeting with your company’s raw materials purchasing agents. As a group, you are discussing when raw materials orders should be placed based on production needs and supplier lead times. You have compiled the following production needs and lead time information: After you place an order for raw materials, the shipment usually arrives at your warehouse five days later. You determined that your production processes use about 300 units of raw materials per day. You want to keep your inventory carrying costs down and your supplier has a 100% on time-delivery rate. As a result, you decide to carry no inventory buffer. Based on the information presented and given your daily raw materials usage and the lead time for raw materials orders, what minimum units of raw materials inventory should your company maintain at all times?
Answer:
this company's reorder point should be 1,500 units of raw materials.
Explanation:
The reorder point is the minimum level that you can hold on inventory before purchasing more materials. It is calculated by multiplying a company's daily needs (300 units per day) x the delivery lead time (5 days) = 1,500 units.
If the company decided to keep a safety stock, then in order to determine the minimum inventory level you would need to add the desired safety stock + 1,500 units.
Hector and Maria Gonzales Hector a Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multi−national corporation with offices around the world. She has been told by her company that she will be transferred to a new location every three years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make $8,000 in gross monthly income and pay 40% in taxes and withholdings every month. Between them they have monthly payment of $400 in student loans and $700 in car loans, and their credit cards payments average $450 per month. They currently lease a luxury condo for $1,400 per month. They travel to Cancun every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothing in savings but Hector's grandparents have said they will give them a 20% down payment for the new home. Based on t
Question Completion:
They have found a very nice townhouse available for $200,000. Assuming a 20% down payment and a 30-year fixed rate mortgage at 6.65%, what will their PITI be? Annual property taxes are $2,400 and homeowner's insurance premium is $900 per year.
Answer:
Hector and Maria Gonzales
Their PITI will be:
Mortgage Payment $1,027.14
Property Tax $200.00
Home Insurance $75.00
Total PITI = $1,302,14
NB: The rule states that Hector and Maria's PITI should not exceed 28% of their pre-tax monthly income.
Explanation:
a) Data and Calculations:
Home Price = $200000
Down Payment = 20
%
Loan Term = 30 years
Interest Rate = 6.65
%
Start Date = Jan 1, 2020
Annual Tax & Other Cost
s
Property Taxes = $2400
Home Insurance = $900
PMI Insurance = $0
HOA Fee = $0
Other Costs = $35400
b) Based on an online financial calculator:
Monthly Pay: $1,027.14
Monthly Total
Mortgage Payment $1,027.14 $369,771.77
Property Tax $200.00 $72,000.00
Home Insurance $75.00 $27,000.00
Other Costs $2,950.00 $1,062,000.00
Total Out-of-Pocket 4,252.14 $1,530,771.77
House Price $200,000.00
Loan Amount $160,000.00
Down Payment $40,000.00
Total of 360 Mortgage Payments $369,771.77
Total Interest $209,771.77
Mortgage Payoff Date Jan. 2050
c) The PITI is an acronym for principal, interest, taxes, and insurance—the sum components of a mortgage payment. It helps Hector and Maria Gonzales to determine the affordability of this mortgage. The Other Costs of $35,400 represent the annual costs of student and car loans, credit cards payments, and the condo, where they live.
Operating a cash register is a _________ skill. (soft skill or hard skill)
Answer:
Also a hard skill.
Explanation:
A hard skill is something that you have to learn.
Magic Realm, Inc., has developed a new fantasy board game. The company sold 45,000 games last year at a selling price of $66 per game. Fixed expenses associated with the game total $810,000 per year, and variable expenses are $46 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 54,900 games next year (an increase of 9,900 games, or 22%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)
Answer:
Please see below and attached.
Explanation:
1a. Prepare a contribution format income statement for the game last year. The Net operating income is $90,000.
1-b The degree of operating leverage
= $10.
2a. Net operating income increases by 220%
2b. Total expected net operating income is $288,000.
Please find attached detailed breakdown of the answers provided above
Schedule of Cash Collections of Accounts Receivable Pet Supplies Inc., a pet wholesale supplier, was organized on January 1, 2016. Projected sales for each of the first three months of operations are as follows: January $370,000 February 450,000 March 660,000 All sales are on account. 56% of sales are expected to be collected in the month of the sale, 40% in the month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for January, February, and March.Pet Place Supplies Inc.
Schedule of Collections from Sales
For the Three Months Ending July 31, 2016
May
June
July
May sales on account:
Collected in May
Collected in June
Collected in July
June sales on account:
Collected in June
Collected in July
July sales on account:
Collected in July
Total cash collected
Answer:
Results are below.
Explanation:
All sales are on account.
56% of sales are expected to be collected in the month of the sale
40% in the month following the sale
4% in the second month following the sale.
Cash Collection January:
Sales on account January= 370,000*0.56= $207,200
Total cash collection= $207,200
Cash Collection February:
Sales on account January= 370,000*0.44= $162,800
Sales on account February= 450,000*0.56= $252,000
Total cash collection= $414,800
Cash Collection March:
Sales on account January= 370,000*0.04= $14,800
Sales on account February= 450,000*0.44= $198,000
Sales on account March= 660,000*0.56= $369,600
Total cash collection= $582,400
Answer:
Correct
Explanation:
In order to communicate effectively on the job, it is important to do all of the following,
except
adopt an audience-centered approach.
share your personal experiences related to the job.
be sensitive to business etiquette.
minimize distractions.
Answer:
a
Explanation:
adopt an audience centered approach
The following financial information was taken from the books of Zone Health Club, a small spa and fitness club: Account Balances as of December 31, Year 2 Accounts receivable $ 12,450 Accounts payable 6,200 Salaries payable 3,150 Cash 36,750 Dividends 2,000 Operating expense 35,300 Prepaid rent 1,200 Rent expense 8,400 Retained Earnings 1/1/Year 2 41,250 Salaries expense 14,500 Service revenue 65,400 Supplies 650 Supplies expense 3,150 Common stock 7,000 Unearned revenue 6,400 Land 15,000 Required a. Prepare the journal entries necessary to close the temporary accounts at December 31, Year 2, for Zone Health Club. b. What is the balance in the Retained Earnings account after the closing entries are posted?
Answer:
A. 1. Dr Service revenue65,400
Cr Retained Earnings 65,400
2. D Retained earnings61,350
Cr Operating expense35,300
Cr Rent expense8,400
Cr Salaries expense14,500
Cr Supplies expense3,150
3. Dr Retained earnings2,000
Cr Dividends2,000
B. $43,300
Explanation:
A. Preparation of the journal entries to close the temporary accounts
1. Dr Service revenue65,400
Cr Retained Earnings 65,400
2. D Retained earnings61,350
(35,300+8,400+14,500+3,150)
Cr Operating expense35,300
Cr Rent expense8,400
Cr Salaries expense14,500
Cr Supplies expense3,150
3. Dr Retained earnings2,000
Cr Dividends2,000
B. Calculation for the balance in the Retained Earnings account
Retained Earnings Balance
Beginning retained earnings$41,250
Add: Revenue65,400
Less: Expenses(61,350)
Less: Dividends(2,000)
Ending retained earnings$43,300
Therefore the balance in the Retained Earnings account will be $43,300
A segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied. Which of the following is the best illustration of the threat of suppliers' growing bargaining power? A. Sears unsuccessfully attempted to compete with WaI-Mart and Kmart. B. McDonald's is the largest fast food franchise and is still growing. C. The U.S. Post Office has merged package operations with FedEx. D. Oil companies must purchase a significant amount of their product from OPEC. E. Wal-Mart has almost no competitors in its market space.
Answer:
D
Explanation:
The bargaining strength of suppliers is one of Porters five forces. The higher the bargaining power, the less attractive a segment is as companies would not have less power to negotiate prices for their supplies.
Bargaining power would be lower where there are less number of suppliers. This is the case with oil companies that have to purchase their oil from OPEC. They have no choice but to buy from OPEC. If OPEC increases oil prices, oil companies don't have the option of buying from another supplier
A loan is being repaid with payments of $395 made at the beginning of each year for 17 years. Determine the effective annual rate of interest charged if the loan amount is $5081.27.
Answer:
3.76%
Explanation:
I did this computation using excels Rate function. I will show you how to do the same in this solution
From our question,
We have:
Loan amount = Present Value(PV) = -5081.27
Payments at periods PMT = $ 395
The Future Value (FV) = 0
We were given Period (NPER) = 17
The Type = 1 because payments are made at the start of each year.
To get rate = RATE (NPER, PMT,PV,FV,Type, Guess)
= RATE(17,395,-5081.27,0,1,0)
= 3.76%
The effective annual rate = 3.76%
The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $4,800. Marketing studies indicate that such a campaign would increase sales in the Medical market by $42,000 or increase sales in the Dental market by $36,000. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign?
Answer:
1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market?
We are missing the cost structure, so I looked for similar question. The company's current segment margin for the medical market is 30%. So this campaign would increase segment profit by $42,000 x 30% = $12,600. Since its cost is $4,800, net profit will increase by $12,600 - $4,800 = $7,800
2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market?
The dental market's segment profit is 24%, so this campaign would increase revenue by $36,000 x 24% = $8,640. To calculate net profit we must again subtract the campaign's cost. Net profit = $8,640 - $4,800 = $3,840
3. In which of the markets would you recommend that the company focus its advertising campaign?
They should focus on the medical market since their profit will be higher.
Explanation:
The Department of Transportation plans to build a temporary bridge to reduce travel time during the three years it will take to renovate the Pulaski Skyway, an important bridge for commuters. The temporary bridge can be put up in a few weeks at a cost of $48 million. At the end of three years, the bridge would be decommissioned and the steel would be sold for scrap. The real net cost of decommissioning would be $3 million, after accounting for scrap sales. Based on estimated time savings and wage rates, fuel savings, and reductions in risks of accidents, department analysts predict that the benefits in real dollars would be $15,900,000 during the first year, $18,900,000 during the second year, and $19,000,000 during the third year. Departmental regulations require use of a real discount rate of 4 percent. (a) Calculate the net present value of the temporary bridge assuming that the benefits are realized at the end of each of the three years. (b) Calculate the net present value of the temporary bridge assuming that the benefits are realized at the beginning of each of the three years. (c) Calculate the net present value of the temporary bridge assuming that the benefits are realized in the middle of each of the three years. (d) Does it make sense for the Department of Transportation to build the temporary bridge?
Answer:
required investment:
building costs = $48 million
decommissioning costs = $3 (at the end of year 3)
benefits:
year 1 = $15,900,000
year 2 = $18,900,000
year 3 = $19,000,000
discount rate = 4%
I rounded my calculations to the nearest thousand:
a) NPV = -48 + 15,900/1.04 + 18,900/1.04² + 16,000/1.04³ = -$1,013,000
b) NPV = -48 + 15,900 + 18,900/1.04 + 19,000/1.04² - 3/1.04³ = $973,000
c) NPV = -48 + 15,900/1.04⁰°⁵ + 18,900/1.04¹°⁵ + 19,000/1.04²°⁵ - 3,000/1.04³ = -$31,000
d) From a strictly financial point of view and only considering the 3 previous calculations, the project should be rejected. Two out of 3 options yield a negative NPV.
State of the Economy Is the Economy in a Recessionary Gap, Inflationary Gap, or Long-Run Equilibrium? Does Equilibrium, a Shortage, or a Surplus Exist in the Labor Market? Will Wages Fall, Rise, or Remain Unchanged? Will the SRAS Curve Shift Right, Left, or Remain Unchanged? Is the Economy Above, Below, or on Its Institutional PPF? QQNQ>QN Q=QNQ=QN
Answer:
Natural GDP is the optimum quantity of goods and services that a country is expected to be producing per year. It is based on the various resources and constraints available in the economy.
Real GDP is the inflation adjusted value of goods and services actually produced in the country in a year.
1. Q < Qn ⇒ Recessionary Gap ⇒ Surplus in labor market ⇒ Wages will fall ⇒ SRAS will shift right ⇒ Below PPF
At this point where Natural GDP is above Real GDP, the nation is underproducing which means it is in a recessionary gap. Many will be unemployed so there will be a surplus in the labor market which makes labor cheap so wages will fall. The SRAS will shift right as input costs will be lower (wages) but the economy is inefficient so it is below its PPF.
2. Q > Qn ⇒ Inflationary Gap ⇒ Shortage in Labor market ⇒ Wages rise ⇒ SRAS shifts left ⇒ Above PPF
Real GDP is higher than the Natural GDP. The economy will be in an inflationary gap as a result and there will be a shortage in the labor market s companies look for more people to produce more which will lead to a rise in wages. With the ride in wages comes a rise in production costs so SRAS will shift left. The country will be above its PPF which is unattainable.
3. Q = Qn ⇒ Long Run Equilibrium ⇒ Labor Market Equilibrium ⇒ Unchanged wages ⇒ Unchanged SRAS ⇒ Producing at PPF boundary
This is the ideal situation where Real GDP equals Natural. Here the economy will be in a long run equilibrium where the labor market will also be in equilibrium which means that wages will not change, SRAS will remain where it is and the economy will be at the Production Possibilities Frontier (PPF) boundary.
Tangible resources include:
A. human assets and intellectual capital, which can include the talent of the work force and the creativity and innovativeness of certain personnel.
B. reputational assets, which can include the company's reputation for quality, service, and reliability as well as their reputation for fair dealings with suppliers.
C. relationships with alliances that provide access to technologies, specialized know-how, or geographic markets.
D. technological assets such as patents, copyrights, and trade secrets.
E. None of these.
Answer:
D.technological assets such as patents, copyrights, and innovation technologies.
Explanation:
Tangible resources are regarded as a physical asset with a set of value that are been owned by organization, companies. Tangible resources could be equipment, machinery, buildings, cash and so on.
It should be noted that Tangible resources can be in form of technological assets such as patents, copyrights, and innovation technologies.
They are important in finance because their utilization could be for very long time in the business.
:
When a market successfully understands a negative externality like pollution, and assigns costs in a way that they are reflected in the market price, the market is said to be ________________________.
Answer:
allocating resources efficiently
Explanation:
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Negative externality causes inefficient allocation of resources. By assigning costs to negative externality, the negative externality produced would reduce and this would lead to efficient allocation of resources
You discover the engine-oil additive your scientists developed three years ago makes a great men’s after-shave once diluted properly using certain chemicals. How should you treat the original $125,000 of R&D expenditures that went into developing the engine-oil additive for your present decision regarding whether or not to begin production of the after-shave? a. Treat it as a cash outflow three years ago for the current project; that is, find the future value today of the $125,000 spent three years ago.
Answer: e. As a sunk cost since the R&D expenditure has no bearing on today's investment decision.
Explanation:
Sunk Costs are not to be factored in when making decisions because they have already been incurred and cannot be recovered.
This R&D expense should therefore be treated as a sunk cost because it has already been incurred and expensed and does not contribute to the decision today to embark on the men's after-shave venture.
Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, Information Technology and Administration, and two operating departments, Surgery and Recovery. Service Department Operating Department Information Technology Administration Surgery Recovery Departmental costs $ 36,294 $ 36,282 $ 522,320 $ 720,360 Computer workstations 43 20 74 64 Employees 39 25 94 47 Information Technology Department costs are allocated on the basis of computer workstations and Administration Department costs are allocated on the basis of employees. The total Surgery Department cost after service department allocations is closest to:
Answer:
Romain Surgical Hospital
The total Surgery Department cost after service department allocations is closest to:
$ 565,970
Explanation:
a) Data and Calculations:
Service Department Operating Department
Information Technology Administration Surgery Recovery
Departmental costs $ 36,294 $ 36,282 $ 522,320 $ 720,360
Computer workstations 43 20 74 64
Employees 39 25 94 47
Information Technology costs allocated based on the Computer workstations $36,294/138 = $263 per workstation
Administration costs allocated based on the number of employees:
$36,282/141 = $257.32
Direct Allocation of Service Departments' Costs:
Service Department Operating Department
Information Technology Administration Surgery Recovery
Departmental costs $ 36,294 $ 36,282 $ 522,320 $ 720,360
Information Techn. (36,294) 0 19,462 16,832
Administration 0 (36,282) 24,188 12,094
Total costs 0 0 $ 565,970 $ 749,286
Suppose we express the amount of land under cultivation as the product of four factors:
Land = (land/food) x (food/kcal) X (kcal/person) X (population)
The annual growth rates for each factor are (1) the land required to grow a unit of food, - 1 percent (due to greater productivity per unit of land); (2) the amount of food grown per calorie of food eaten by a human, +0.5 percent (because with affluence, people consume more animal products, which greatly reduces the efficiency of land use); (3) the per capita calorie consumption, +0.1 percent; and (4) the size of the population, + 1.5 percent. At these rates, how long would it take to double the amount of cultivated land needed? At that time, how much less land would be required to grown a unit of food?
Answer:
t = 63.01338
46.74%
Explanation:
Using the exponential growth equation :
P = Po * exp(rt)
Rate factors are :
land required to grow a unit of food, = - 1%
amount of food grown/calorie of food = +0.5%
size of the population = 1.5 percent
the per capita calorie consumption, +0.1%
Σ growth rates = - 1 + 0.5 + 1.5 + 0.1 = 1.1% = 0.011
Time taken for Population to double ;
Population (P) = 2 * initial population (Po)
P = 2Po
P = Po * exp(rt)
Substitute 2Po for P
2Po = Po * exp(rt)
2 = exp (rt)
Take the In of both sides
In(2) = rt
0.6931471 = 0.011 * t
t = 0.6931471/ 0.011
t = 63.01338
At that time, how much less land would be required to grown a unit of food?
100 - exp(rt)
r = growth rate of land required to grow a unit of food, = - 1% = - 0.01
[1 - exp(-0.01 * 63.01338)]
[1 - 0.5325205]
= (0.4674795)
= (0.4674) * 100%
= 46.74%
Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows:
Raw materials $ 40,000
Work in process $ 18,000
Finished goods $ 35,000
The company applies overhead cost to jobs on the basis of direct labor-hours. For the current year, the company’s predetermined overhead rate of $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year:
a. Raw materials were purchased on account, $510,000
b. Raw materials use in production, $480000. All of of the raw materials were used as direct materials.
c. The following costs were accrued for employee services: direct labor, $600,000; indirect labor, $150,000; selling and administrative salaries, $240,000.
d. Incurred various selling and administrative expenses (e.g., advertising, sales travel costs, and finished goods warehousing), $367,000
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $500,000.
f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year.
g. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year.
h. Jobs were sold on account to customers during the year for a total of $2,800,000. The jobs cost $1,690,000 to manufacture according to their job cost sheets.
Question:
3. What is the journal entry to record the labor costs incurred during the year?
4. What is the total amount of manufacturing overhead applied to production during the year?
5. What is the total manufacturing cost added to Work in Process during the year?
6. What is the journal entry to record the transfer of completed jobs that is referred to in item g above?
7. What is the ending balance in Work in Process?
9. Is manufacturing overhead underapplied or overapplied for the year? By how much?
12. What is the ending balance in Finished Goods?
13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year?
14. What is the gross margin for the year?
15. What is the net operating income for the year?
Answer:
3.
DR Selling and Administrative Salaries $240,000
Manufacturing Overhead $150,000
Work in Process $600,000
CR Wages Payable $990,000
4.
Manufacturing Overhead Applied
= 41,000 hours * 16.25
= $666,250
5. Total Manufacturing cost to be added = Raw Materials + Direct Labor + Manufacturing Overhead
= 480,000 + 600,000 + 666,250
= $1,746,250
6.
DR Finished Goods $1,680,000
CR Work in Process $1,680,000
7.
Ending Balance = Beginning balance + Raw materials + Direct labor + Manufacturing Overhead - Cost transferred to Finished goods
= 18,000 + 480,000 + 666,250 + 84,250 - 1,680,000
= $84,250
9. Predetermined overhead cost - Actual cost = 666,250 - 650,000 = $16,250.
Overapplied as predetermined cost was more than Actual.
12. Finished goods = Beginning balance + Cost transferred from WIP - Cost of goods sold
= 35,000 + 1,680,000 - 1,690,000
= $25,000
13.
Adjusted Cost of Goods sold = Cost of goods sold - Overapplied
= 1,690,000 - 16,250
= $1,673,750
14. Gross Margin = Sales - Adjusted COGS
= 2,800,000 - 1,673,750
= $1,126,350
15. Net Operating Income
= Gross Margin - Selling and Administrative salaries - Selling and Administrative expenses
= 1,126,350 - 240,000 - 367,000
= $519,250
What advertising form did Isaac use if consumer will see his advertisement anytime that they look online for the phrase tree cutting
Answer:
paid search engine results
Explanation:
Paid search engine results, advertising form did Isaac use if consumer will see his advertisement anytime that they look online for the phrase tree cutting. Therefore, option (a) is correct.
What is advertising?
The term “advertising” refers to the part of marketing communication. Advertising is a promotional tool used to attract and inform consumers about available products and services. The main objective of the advertisement is to promote a product or service being purchased by the target audience.
According to the advertising are the based on the target audience. The advertising are the part of the communication. There are the based on the online phrases tree cutting. There are the best adverting for the paid the search engine to attract the consumer.
As a result, the paid search engine results, advertising form did Isaac use if consumer will see his advertisement anytime that they look online for the phrase tree cutting.
Learn more about on advertising, here:
https://brainly.com/question/3163475
#SPJ2
Your question is incomplete, but most probably the full question was.
Paid search engine resultsWeb bannersBroadcast emailsSearch engine optimization (SEO)Mojo Mining has a bond outstanding that sells for $640 and matures in 18 years. The bond pays semiannual coupons and has a coupon rate of 5.54%. The par value is $1,000. If the company's tax rate is 35%, what is the aftertax cost of debt
Answer:
After tax cost of debt = 6.40%
Explanation:
Coupon rate = 5.54%
Years of maturity = 18
NPER = Years of maturity * 2 = 18 * 2 = 36
PMT = (Face value * Coupon rate) / 2 = (1,000 * 5.54%) / 2 = 27.7
Face value = $1,000
Price (PV) = $640
Rate (36, 27.2, -640, 1000) Using excel = 0.049246 = 4.92%
YTM = Rate * 2 = 4.92% * 2 = 0.098492 = 9.85%
Pre-tax csot of debt = 9.85%
After tax cost of debt = 9.85%* (1 - 0.35)
After tax cost of debt = 9.85% * 0.65
After tax cost of debt = 0.098492 * 0.65
After tax cost of debt = 0.0640198
After tax cost of debt = 6.40%
June 1 T. James, owner, invested $11,500 cash in Sustain Company in exchange for common stock. 2 The company purchased $4,500 of furniture made from reclaimed wood on credit. 3 The company paid $700 cash for a 12-month insurance policy on the re-claimed furniture. 4 The company billed a customer $3,500 in fees earned from preparing a sustainability report. 12 The company paid $4,500 cash toward the payable from the June 2 furniture purchase. 20 The company collected $3,500 cash for fees billed on June 4. 21 T.James invested an additional $10,500 cash in Sustain Company in exchange for common stock. 30 The company received $5,500 cash from a client for sustainability services for the next 3 months.Prepare general journal entries for the above transactions
Answer:
General Journal
June 1
Cash $11,500 (debit)
Common Stock $11,500 (credit)
Received Cash in exchange of common stock
June 2
Furniture $4,500 (debit)
Accounts Payable $4,500 (credit)
Purchased Furniture on credit
June 3
Prepaid Insurance $700 (debit)
Cash $700 (credit)
Paid Insurance in advance
June 4
Accounts Receivable $3,500 (debit)
Fees Earned $3,500 (credit)
Fees earned not yet paid
June 12
Accounts Payable $4,500 (debit)
Cash $4,500 (credit)
Payment made to suppliers
June 20
Cash $3,500 (debit)
Accounts Receivable $3,500 (credit)
Cash receipt from debtors
June 21
Cash $10,500 (debit)
Common Stock $10,500 (credit)
Received Cash In exchange of Common Stock
June 30
Cash $5,500 (debit)
Deferred Revenue $5,500 (credit)
Received Cash for services to be rendered
Explanation:
See the journals and their narrations prepared above.
Answer:
Entries are posted
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
DEBIT CREDIT
1-June (Common Stock issued)
Cash $11,500
Common stock $11,500
2-June (Furniture purchased on Credit)
Furniture $4,500
Accounts Payable $4,500
3-June (Prepaid Insurance Paid)
Prepaid insurance $700
Cash $700
4-June (Revenue earned)
Accounts Receivable $3,500
Service Revenue $3,500
12-June (Paid for Outstanding balance in payables)
Accounts Payable $4,500
Cash $4,500
20-June (Received from Accounts Receivables)
Cash $3,500
Accounts Receivables $3,500
21-June (Common Stock issued)
Cash $10,500
Common stock $10,500
30-June (Advance received for services to be performed in future)
Cash $5,500
Unearned Service Revenue $5,500
What part of the unit correlates to this Ted Talk and shares the same concepts that are covered? Discuss the similarities between Ted talk and the unit in terms of personal finance
Lesson 04 correlates to this Ted Talk and shares the same concepts that are covered. The similarity is that White was talking about “smalling up” and she talked about the effect on her local economy when she was on unemployment. The lesson talked about how being on unemployment impacted the economy.
The unit that is not unusual with the TED communication is the dialogue about the own family and the government shares. The dialogue approximately the own family and the authorities shares are finished in a manner that resembles both the Unit and the TED talk. It method that this is the maximum essential element.
What is private finance?Private finance is the procedure of planning and coping with personal economic sports such as profits era, spending, saving, investing, and safety. The system of coping with one's personal finances may be summarized in a finance or financial plan.
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Stear Corp. has an opening inventory of $2,500. During the year, it made purchases worth $55,000. At the end of the accounting period, the inventory was worth $1,250. What was the cost of goods sold?
A.
$57,500
B.
$56,250
C.
$53,750
D.
$55,000
Answer:
B. 56,250
Explanation:
"Beginning inventory of 2,500 plus purchases of 55,000 minus ending inventory of 1,250 = 56,250 of cost of goods sold."
Which of these credit card payback strategies would result in your paying the HIGHEST amount of interest?
A. Paying 20% of your credit card balance every month on time
B. Paying off your credit card in full every month
C. Making the minimum payment (3% credit card balance) every month on time
D. Making the minimum payment (3% credit card balance) every month with an occasional late payment
Answer:
D. Making the minimum payment (3% credit card balance) every month with an occasional late payment
Explanation:
Credit card debts attract a very high-interest rate. By design, the interest on uncleared balances increases rapidly. Credit cards calculate interest monthly. Any uncleared balance and the interest incurred is rolled over to the next month, where it continues attracting more interest.
The best strategy is to clear credit card debts in the month they are incurred. Late payment attracts heavy penalties. A combination of late payments and outstanding balances will make interest charges grow exponentially.
The credit card payback strategies that would result in your paying the HIGHEST amount of interest is:
D. Making the minimum payment (3% credit card balance) every month with an occasional late paymentCredit card debt has to do with the overdraft which a customer has collected from the company and is yet to make repayment. As a result of this, when it becomes overdue, there would be certain extra charges which would definitely hurt the customer.
As a result of this, we can see the method that would result in the highest interest rate is the fourth option.
In this method, there would be a 3% overcharge every month.
Therefore, the correct answer is option D
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aker Industries’ net income is $27000, its interest expense is $5000, and its tax rate is 45%. Its notes payable equals $24000, long-term debt equals $80000, and common equity equals $260000. The firm finances with only debt and common equity, so it has no preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet What are the firm’s ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations.
Answer:
ROE = 10.3%
ROE = 10.3%
Explanation:
ROE can be calculated by dividing net income by common equity and ROIC can be calculated by dividing EBIT after tax by the total invested capital.
1) Computation of ROE
ROE = Net Income / Common Equity
ROE = $27,000 / $260,000
ROE = 0.103 or ROE = 10.3%
2) Computation of ROIC
ROIC = [EBIT * (1-tax rate)] / Total Invested capital
ROIC = [$50,000 * (1 - 0.40)] / $365,000
ROIC = 0.0821 or ROIC = 8.21%
EBT = Net income *100 / (100% - T)
EBT = $27,000 x 100% / 60%
EBT = $45,000
EBIT = EBT + interest = $45,000 + $5,000
EBIT = $50,000
Invested capital = Notes payable + Long term Debt + Common stock
Invested capital = $24,000 + $80,000 + $260,000
Invested capital = $365,000
Ampco Disk Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were for August 20X5: Work in process, beginning inventory 100,000 units Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (90% complete) Transferred in during current period 300,000 units Completed and transferred out 250,000 units Work in process, ending inventory 50,000 Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (65% complete)Calculate equivalent units for conversion costs using the FIFO method. a. 30,280 units.b. 299,800 units.c. 390,580 units.d. 353,400 units.
Answer:
Total Equivalent units=292,500units
Explanation:
Calculation for the equivalent units for conversion costs
Beginning work in process 10,000 units
(100,000 × 0.10)
Completed and transferred out 250,000 units
Ending work in process 32,500, units
(50,000 × 0.65)
Total Equivalent units=292,500units
Therefore the equivalent units for conversion costs Will be 292,500units
The Ampco Disk Company will report equivalent units for Conversion Costs using the FIFO method as $292,500 units.
Data and Calculations:
Physical Transferred-in Direct Conversion
Units Materials Costs
Beginning inventory 100,000 100% 0% 90%
Transferred in period 300,000
Available units 400,000
Completed & transferred out 250,000
Ending inventory 50,000
Equivalent units:
Physical Transferred-in Direct Conversion
Units Materials Costs
Beginning inventory 100,000 0 (0%) 0 (0%) 10,000 (10%)
Started and transferred 250,000 250,000 250,000 250,000 (100%)
Ending inventory 50,000 50,000 0 (0%) 32,500 (65%)
Total equivalent units 300,000 250,000 292,500
Thus, the equivalent units for Conversion Costs under the FIFO method is 292,500 units.
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Interest rates affect corporate profits and security prices. Based on your understanding of the relationship between interest rates and corporate profits and security prices,identify which of the following statements is true and which is false. Statements 1. Interest rates affect the level of economic activity, which in turn affects the profits earned by a business organization, all other considerations remaining constant. 2. Interest rates will affect the preference of investors to own stocks versus owning bonds. 3. A sharp decrease in interest rates will increase the price of bonds, which can significantly decrease the potential for capital gains and the yield earned by a bondholder. This should decrease the demand for bonds compared to the demand for stocks, all other considerations remaining constant. 4. An increase in market interest rates will increase the opportunity cost of investors' funds and increase the price of financial assets.
Answer:
1. Interest rates affect the level of economic activity, which in turn affects the profits earned by a business organization, all other considerations remaining constant.
TRUE, higher interest rates "cool down" the economy, reducing economic activity, disposable income and the profits earned by companies. Lower interests rates due the opposite.
2. Interest rates will affect the preference of investors to own stocks versus owning bonds.
TRUE, e.g. if interest rates increase, the price of bonds decrease, which can result in higher yields for bondholders. Since money is limited, if more people invest in bonds, less people will invest in stocks. A decrease in interest rates results in the opposite.
3. A sharp decrease in interest rates will increase the price of bonds, which can significantly decrease the potential for capital gains and the yield earned by a bondholder. This should decrease the demand for bonds compared to the demand for stocks, all other considerations remaining constant.
TRUE, for the same reasons as question 2.
4. An increase in market interest rates will increase the opportunity cost of investors' funds and increase the price of financial assets.
FALSE, as the interest rates increase, the price of financial assets decrease. They basically go on the opposite way. If the interest rates decrease, then the price of financial assets increases.
On June 1, 2021, Royal Property Management entered into a one-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2021. Under the terms of the contract, Royal will be paid a fixed fee of $62,000 and will receive an additional 15% of the fixed fee at the end of the contract provided that building occupancy exceeds 90%. Royal estimates a 30% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract. Assume that Royal accrues revenue each month, and estimates variable consideration as the most likely amount. On November 1, Royal revises its estimate of the chance the building will exceed the 90% occupancy threshold to a 70% chance. What is the total amount of revenue Royal should recognize on this contract in November of 2021
Answer:
$9,041
Explanation:
The computation of the total amount of revenue Royal should recognize on contracts in November of 2021 is shown below:-
Revenue to be recognized for 4 months = $62,000 × 4 ÷ 12
= $20,667
Total Fees = $62,000 + ($62,000 x 15%)
= $71,300
Revenue recognized at the end of November
= $71,300 × 5 ÷ 12
= $29,708
Revenue recognized in November of 2021
= Revenue recognized at the end of November - Revenue to be recognized for 4 months
= $29,708 - $20,667
= $9,041
