Answer and Explanation:
The computation is shown below:
Sales revenue $775,000
Less: Cost of goods sold 350,000
Gross profit 425,000
Less: Selling administrative expenses 125,000
Income from operations 300,000 (a)
b.
Income from operations
Other revenues and gains
Add: Gain on sale of plant assets 75,000
Other expenses and losses
Income before other expenses and losses 375,000
Less: Interest expense 15,000
Income from continuing operations 360,000
Less: Loss on discontinued operations (30,000)
Net Income 330,000 (b)
c.
Net income
Less: Allocation to noncontrolling interest (100,000)
Net income attributable to controlling shareholders $230,000 (c)
d.
Net income $330,000
Add: Unrealized gain on available-for-sale investments 25,000
Comprehensive income $355,000 (d)
e. Retaining earnings opening balance $0
Add: Net income $330,000
Less: Dividends (12,000)
Closing Retained earnings $318,000 (e)
Don James purchased a new automobile for $19,000. Don made a cash down payment of $4,750 and agreed to pay the remaining balance in 30 monthly installments, beginning one month from the date of purchase. Financing is available at a 24% annual interest rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the amount of the required monthly payment. (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)
Answer:
$636.26 ≈ $636
Explanation:
we can use the present value of an annuity formula to determine the monthly payment:
PV = monthly payment x annuity factor
monthly payment = PV / annuity factor
PV = $19,000 - $4,750 = $14,250PV annuity factor, 2%, 30 periods = 22.3965monthly payment = $14,250 / 22.3965 = $636.26 ≈ $636
Start with the beginning balances for these T-accounts: Accounts Receivable, $100,000, Allowance for Uncollectible Accounts, $14,000. Post the following 2018 transactions to the T-accounts: a. Service revenue of $697,000, all on account b. Collections on account, $714,000 c. Write-offs of uncollectible accounts, $8,000 d. Uncollectible-account expense (allowance method), $11,000. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts?
Answer:
T-accounts:
The ending balances of Accounts Receivable and Allowance for Uncollectible Accounts are:
Accounts Receivable = $75,000
and
Allowance for Uncollectible Accounts = $17,000
Explanation:
Accounts Receivable
Accounts Title Debit Credit
Balance $100,000
Service Revenue 697,000
Cash $714,000
Uncollectible written off $8,000
Balance $75,000
Allowance for Uncollectible Accounts
Accounts Title Debit Credit
Balance $14,000
Uncollectible written off $8,000
Uncollectible Expense 11,000
Balance 17,000
Sarah is using the needs approach to determine how much life insurance to buy. Her cash needs are $30,000; her income needs are $140,000; and special needs are $100,000. Sarah has the following assets: $20,000 in bank accounts, $30,000 in retirement plans, and $40,000 in investment accounts. Sarah owns no individual life insurance. She is covered by a $50,000 group life insurance policy through her employer. Based on this information, how much additional life insurance should Sarah purchase? A. $80,000 B. $130,000 C. $150,000 D. $160,000
Answer:
$130,000
Explanation:
Sarah is making use of the needs approach to determine how much life insurance to buy
The first step is to calculate the total amount of life insurance
Total amount of life insurance = Total needs - total assets
Total need = income needs + cash needs + special needs
= $140,000 + $30,000 + $100,000
= $270,000
Total assets= retirement plan + bank account + investment account
= $30,000 + $20,000 + $40,000
= $90,000
Total amount of life insurance = $270,000-$90,000
= $180,000
Since Sarah is covered by $50,000 group insurance by her employer then the additional life insurance that should be purchased can be calculated as follows
= $180,000 - $50,000
= $130,000
Ledger accounts have been opened using the balances from the adjusted trial balance. Post the closing entries to the general ledger in RED order and calculate ending balances for each account. For accounts that have a zero balance, enter the zero on the normal balance side.Date Accounts and Explanation Debit Credit Dec. 31 Service Revenue 198,900 Retained Earnings 198,900 To close Revenue Date Accounts and Explanation Debit Credit Dec. 31 Retained Earnings 20,000 Dividends 20,000 To close Dividends Date Accounts and Explanation Debit Credit Dec. 31 Retained Earnings 81,000 Selling Expenses 15000 Advertising Expense 8000 Salaries Expense 10000 Depreciation Expense-- 7000 Furniture Utilities Expense 6000 Income Tax Expense 5,000Date Accounts and Explanation Debit Credit Dec. 31 Retained Earnings 81,000 Selling Expenses 15000 Advertising Expense 8000 Salaries Expense 10000 Depreciation Expense-- 7000 Furniture Utilities Expense 6000 Income Tax Expense 5000 Rent Expense 24000 Insurance Expense 4000 Supplies Expense 2,000
Answer: See explanation
Explanation:
The adjusted trial balance is simply defined as an internal document whereby both the titles and balances of the general ledger account when an adjustments have been done are listed.
Even though it isn't a financial statement, it is shown in the financial statements.
The question has been solved and attached.
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $390,000. During 2021, Halifax sold merchandise on account for $12,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $370,000 in sales for credit, with $204,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end. 2. What is the amount of the year-end refund liability after the adjusting entry is recorded
Answer:
Please find attached solution to the above questions
Explanation:
a. Record actual returns in 2021 of Merchandize that was sold prior to 2021.
b. Record actual returns in 2021 of Merchandize that was sold during 2021
c. Adjust the refund liability to its appropriate balance at year end.
2. What is the amount of the year end refund liability after the adjusting entry is recorded.
Please see detailed solution as attached in respect of the above questions.
City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $23,700. In addition, City paid sales tax and title fees of $570 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,360. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.) b. Assume the auto was sold on January 1, Year 3, for $19,672. Determine the amount of gain or loss that would be recognized on the asset disposal. (Round the intermediate calculations to nearest whole dollar amount.)
Answer: See explanation
Explanation:
Note that the depreciable cost was calculated as $17910 and the depreciation per year was:
= $17910/5
= $3582
Also, the book value of the taxi was calculated as:
= Cost - Accumulated depreciation
= $24270 - ($3582 × 2)
= $24270 - $7164
= $17106
Check the attachment for further explanation.
At the end of the preceding year, XYZ Inc. had a deferred tax asset of $17,500,000, attributable to its only temporary difference of $70,000,000 for estimated expenses. At the end of the current year, the temporary difference is $45,000,000. At the beginning of the year there was no valuation account for the deferred tax asset. At year-end, XYZ Inc. now estimates that it is more likely than not that one-third of the deferred tax asset will never be realized. Taxable income is $12,000,000 for the current year and the tax rate is 25% for all years. Required: In its current year balance sheet, what amount should XYZ report as income tax payable? In its current year balance sheet, what amount should XYZ report as deferred tax asset (net of the allowance)? In its current year income statement, what should XYZ report as income tax expense? In its current year income statement, what should XYZ report as net income? Prepare the journal entry to record XYZ's income tax expense for the current year.
Answer:
Kindly check the explanation section.
Explanation:
So, we are given the following data or parameters in this particular Question which is going to help us in solving this particular Question.
=> the taxable income = $12,000,000 for the current year.
=> the tax rate is 25% for all years.
=> deferred tax asset = $17,500,000.
=> The temporary difference = $70,000,000 for estimated expenses. => "At the end of the current year, the temporary difference is $45,000,000."
So, let us dive straight into the solution;
Step one: calculate or Determine the income tax expense.
So, we have ( $45,000,000 × 25%) - $17,500,000 = − $6,250,000. This is recorded in the credit side as $6,250,000.
Step two: Determine the income tax payable.
=> taxable income × tax rate for all years = 12,000,000 × 25% = 3,000,000. This is recorded at the credit side.
Step three: Determine the valuation allowance in deferred.
The valuation allowance in deferred = 1/3[ 45,000,000 × 24] = 3,750,000. This is also recorded in the Credit side.
Verano Inc. has two business divisions — a software product line and a waste water clean - up product line. The software business has a cost of equity capital of 12 % and the waste water clean - up business has a cost of equity capital of 6 %. Verano has 50% of its revenue from software and the rest from the waste water business. Verano is considering a purchase of another company in the waste water business using equity financing. What is the appropriate cost of capital to evaluate the business? 6% 9% 8% 12%
Answer:
9%
Explanation:
The weighted average cost of equity capital =
(50% x 12%) + (50% x 6%) = 9%
Gina has $5,000 saved and wants to attend a college with a current tuition of $10,000 a year. She will graduate from high school in five years. Roughly how much more will Martha need to save for one-year's tuition to account for an annual rate of inflation of 3%
Answer
About 60000 for monthly inflation if this is wrong I am truly sorry i just had a bad day
Presented here are the components in Oriole Company’s income statement. Determine the missing amounts. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income Year 1 $ 72,660 $Enter a dollar amount for year 1 (b) $ 31,100 $Enter a dollar amount for year 1 (d) $13,290 Year 2 $108,500 $72,200 $Enter a dollar amount for year 2 (c) $Enter a dollar amount for year 2 (e) $29,900 Year 3 $Enter a dollar amount for year 3 (a) $73,190 $112,180 $46,690 $Enter a total net income for year 3 (f)
Answer:
Oriole Company
Income Statement
Sales Cost of Gross Operating Net
Revenue Goods Sold Profit Expenses Income
Year 1 $ 72,660 $ 41,560 $ 31,100 $ 17,810 $13,290
Year 2 $108,500 $72,200 $ 36,300 $ 6,400 $29,900
Year 3 $ 185,300 $73,190 $112,180 $46,690 $65,490
Explanation:
Data:
Year 1 $ 72,660 $Enter a dollar amount for year 1
(b) $ 31,100 $Enter a dollar amount for year 1
(d) $13,290 Year 2 $108,500 $72,200 $Enter a dollar amount for year 2
(c) $Enter a dollar amount for year 2
(e) $29,900 Year 3 $Enter a dollar amount for year 3
(a) $73,190 $112,180 $46,690 $Enter a total net income for year 3 (f)
Arrangement:
Sales Cost of Gross Operating Net
Revenue Goods Sold Profit Expenses Income
Year 1 $ 72,660 $ $ 31,100 $ $13,290
Year 2 $108,500 $72,200 $ $ $29,900
Year 3 $ $73,190 $112,180 $46,690 $
Cezanne Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The company's contribution margin ratio is 50%, and its current breakeven point is $600,000 in sales revenue. If the company's fixed expenses increase by $30,000 due to the equipment, what will its new breakeven point be (in sales revenue)? If Cezanne Industries' fixed expenses increase by $30,000 due to the equipment, what will its new breakeven point be (in sales revenue)? Begin by identifying the general formula to compute the breakeven sales in dollars. ( Fixed expenses + Operating income ) ÷ Contribution margin ratio = Breakeven sales in dollars Cezanne will now have to generate of sales revenue to break even.
Answer:
Break-even point (dollars)= $660,000
Explanation:
Giving the following information:
The company's contribution margin ratio is 50%
The break-even point is $600,000 in sales revenue.
Fixed expenses increase by $30,000.
To calculate the new break-even point in sales, we need to determine the break-even point for the increase in fixed costs:
Proportional break-even point (dollars)= increase in fixed costs/ contribution margin ratio
Proportional break-even point (dollars)= 30,000/0.5
Proportional break-even point (dollars)= $60,000
New break-even point:
Break-even point (dollars)= 600,000 + 60,000
Break-even point (dollars)= $660,000
Identify at least five different careers within the Business, Management, and Administration and Finance career clusters that you could pursue in your home state, and choose the three that appeal to you the most. Of the three, write a one-page essay describing which one would be your career choice and the educational pathway that you would have to follow in order to obtain that career. Finally, identify at least three colleges, universities, or training programs that are suited to that career choice. You can use the following resources to help you
Answer:
Five careers within the Business, Management, and Administration or Finance clusters that would be interesting to me are treasurer, underwriter, debt counselor, corporate trainer, and public relations specialist. Of those careers, the three that I think would be best suited to my skills and interests are underwriter, corporate trainer, and public relations specialist.
As a public relations specialist, I would work to create positive relationships with the media, community leaders, special interest groups, and others to help boost the image of the company for which I work. I would write press releases, speeches, and other documents as the liaison to the media. As such, it would be important for me to have excellent writing, time management, public speaking, and interpersonal skills. Because the median salary is $55,680 with an average increase in employment from 2012–2022, it could be a great starting-off point that would allow me to get into the field of public relations.
To become a public relations specialist, I would need to start by getting a bachelor’s degree in public relations. Three schools that I would consider attending to get my degree are the University of Southern California–Los Angeles, University of Texas–Austin, and the University of Tennessee. Each of these schools has established programs that offer hands-on experience in the public relations field. They also offer master’s programs in communications, so I could work toward a master’s degree, as well.
Explanation:
Answer:
Of all the jobs within the Agriculture, Food, and Natural Resources and Energy clusters, I think that the following would be the most interesting for me: seismic technician, food scientist, nursery manager, weatherization manager, and zoologist. Of these career options, I think zoologist, food scientist, and nursery manager are the ones that I would consider pursuing. I would truly enjoy being a nursery manager.
I’ve always considered myself to be someone with a “green thumb.” I enjoy gardening, so I think I would love to make a career out of working in a greenhouse with various plants. I would need to learn about the various plants in the nursery: how to care for them, how to identify when they have a disease or pest, and how to treat problems that arise. As the manager, I would also need to supervise the people working in the nursery.
Some of the skills that will help me find success as a nursery manager are creativity and excellent communication, teamwork, leadership, and problem-solving skills. I would also need to complete on-the-job training and an apprenticeship. I think it would be great to get a job working in a nursery while in high school, so I can start training while I’m still in school. It would give me an opportunity to learn from someone with experience in the field.
Although many nursery-related careers require only a certification or on-the-job training, a manager can benefit from getting a bachelor’s degree in horticulture science. Some of the best programs for horticulture science are through Washington State University, University of Florida, or Cornell University. After completing the program, I would hope to open my own nursery where I could sell plants to homeowners, landscapers, or commercial industries.
Explanation:
Now, consider the situation in which Olivia wants to earn a return of 3.00%, but the bond being considered for purchase offers a coupon rate of 6.00%. Again, assume that the bond pays semiannual interest payments and has three years to maturity. If you round the bonds intrinsic value to the nearest whole dollar, then its intrinsic value of (rounded to the nearest whole dollar) is its par value, so that the bond is
Answer:
Intrinsic value = $1085.87
Explanation:
Annual Rate of return = 3.00%
Annual Coupon rate = 6.00%
Now, consider the situation in which Olivia wants to earn a return of 3.00%, but the bond being considered for purchase offers a coupon rate of 6.00%. Again, assume that the bond pays semiannual interest payments and has three years to maturity. If you round the bonds intrinsic value to the nearest whole dollar, then its intrinsic value of $1085.87 (rounded to the nearest whole dollar) is HIGHER THAN its par value, so that the bond is TRADING AT PREMIUM
Intrinsic value = [tex]\frac{A}{(1+C)^1} + \frac{A}{(1+C)^2} + \frac{A}{(1+C)^3} +\frac{A}{(1+C)^4} + \frac{A}{(1+C)^5} + \frac{A}{(1+C)^6}[/tex] [tex]+ \frac{B}{(1+c)^6}[/tex]
= 30/ (1.015) + 30/(1.015)^2 + ------- + 30/ (1.015)^6 + 1000/(1.015)^6
= 29.56 + 30/1.030 + 30/1.046 + 30/1.061 + 30/1.077 + 30/1.093 + 1000/1.093
= 29.56 + 29.126 + 28.68 + 28.275 + 27.855 + 27.447 = $170.96 + $914.91
= $1085.87
Bond's par value = $1000
annual coupon rate = 6% = 0.06
semiannual coupon rate = 3% = 0.03
semiannual coupon ( A ) = 0.03 * $1000 = $30
Annual rate of return = 3% = 0.03
semi-annual rate of return ( C )= 1.5% = 0.015
Bond Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $20 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labor hour. Job 542 used the following direct labor hours and machine hours in the two departments: Actual results Assembly Department Sanding Department Direct labor hours used 4 3 Machine hours used 9 5 The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 542 is $1,200. What was the total cost of Job 542 if Bond Industries used the departmental overhead rates to allocate manufacturing overhead
Answer:
Total cost= $1,600
Explanation:
First, we need to allocate overhead to each department:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Assembly Department= 20*9= $180
Sanding Department= 15*3= $45
Now, we can calculate the total cost of Job 542:
Total cost= 1,200 + (25*7) + (180 + 45)
Total cost= $1,600
Apex project 1.3.1 evaluating the economy
answer
Which type of innovation has a focus on being eco-friendly?
A. Disruptive
B.Sustaining
C.Frugal
D.Sustainable
Answer:
the answer is B
Explanation:
thank me later bb
Answer:
Explanation:
the answer is D
Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of allotment.
Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15 August 2019. The shares were allotted on a first-come, first-serve basis. The directors refunded the application money for 6 million shares on 15 August 2019. The amounts payable on the allotment are due by 20 September 2019.
By 20 September 2019, the holders of 5 million shares have failed to pay the amounts due on allotment. The directors forfeit the shares on 30 September 2019. The shares are resold on 15 October 2019 as fully paid. An amount of $1.90 per share is received. The remaining balance of forfeited shares were refunded on 20 October 2019.
Provide the journal entries necessary to account for the above transactions and events.
Answer and Explanation:
The journal entries are shown below:
1. Bank Dr $36,000,000 (36 million × $1)
To Share application $36,000,000
(Being the application received)
2. Share application $36,000,000
To Share capital $30,000,000
To bank $6,000,000
(Being the allotment is recorded)
3. Share allotment $30,000,000
To SHare capital $30,000,000
4. Bank Dr $25,000,000
To Share allotment $25,000,000
(being allotment is recorded)
5. Share capital $10,000,000
To SHare forfeited $5,000,000
To Share allotment $5,000,000
(Being share forfetied is recorded)
6. Bank Dr $9,500,000
Share forfeited Dr $500,000
To Share capital $10,000,000
(Being share forfeited is recorded)
7. Share forfeited Dr $4,500,000
To Bank $4,500,000
(Beng share forfeited is recorded)
If the wage is larger than the marginal revenue product of labor then the profit maximizing firm will
Answer:
decrease the units of labor
Explanation:
The marginal revenue product is basically the market price of the extra goods or services produced by employing one additional unit of resources (in this case labor). If hiring an additional unit of labor results in a higher MRP than the cost of labor, then the company will keep adding labor until the cost of labor is higher than the MRP generated by that unit of labor.
E.g. A worker earns $100 per day. He can produce 40 units and each unit is sold at $5. Since the MRP of labor is higher than the cost of labor, more workers will be hired. But eventually, a worker will only be able to produce 20 or less units (law of decreasing marginal returns), and the MRP will be less than the cost of labor. At that point, the worker will be fired.
Select the qualitative characteristics for the following statements. 1. Relevance2. Faithful representation3. Predictive value4. Confirmatory value5. Comparability6. Completeness7. Neutrality8. TimelinessA) Quality of information that permits users to identify similarities in and differences between two sets of economic phenomena. B) Having information available to users before it loses its capacity to influence decisions. C) Information about an economic phenomenon that has value as an input to the processes used by capital providers to form their own expectations about the future. D) Information that is capable of making a difference in the decisions of users in their capacity as capital providers. E) Absence of bias intended to attain a predetermined result or to induce a particular behavior.
Answer:
1. Comparability
2. Timeliness
3. Predictive value
4. Relevance
5. Neutrality
Explanation:
differentiate between piecemeal and time related salary determination methods
Answer:
See below
Explanation:
1. The piecemeal pay method compensates worked based on the quantity of output produced while the time method rewards workers based on the time spent in producing the output. The piecemeal rate system pays per unit of production. The time rate system pays per the number of hours worked.
2. The piecemeal rate system emphasizes the quantity of output compared to the time rate system that focuses on the quality of output.
3.The piecemeal system recognizes and rewards more to efficient and skilled employees, but the time rate system tends to compensate employees in the same cadre equal amounts.
Here, we are required to differentiate between piecemeal and time related salary determination methods.
In Piecemeal salary determination methods, Workers are paid according to the number of products/units produced/action performed while in Time-related salary determination methods, workers are paid in accordance to the amount of time they spend at work/on a task or on the job.
In piecemeal salary determination methods, workers are not remunerated (i.e not paid for work or service) for the number of hours worked, regardless of how long it took to complete the task at hand while in Time-related salary determination methods, orkers with the same experience/qualifications are paid on salary scales regardless of the amount of work done.
Piecemeal salary determination method is mostly used in factories particularly in the textile/technology industries where the labor force is unskilled or sometimes semi-skilled. while Time-related salary determination method is used in many private and public sector businesses as majority of the labor force are skilled.
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https://brainly.com/question/12510257
You are in charge of purchases at the student-run used-book supply program at your college, and you must decide how many introductory calculus, history, and marketing texts should be purchased from students for resale. Due to budget limitations, you cannot purchase more than 850 of these textbooks each semester. There are also shelf-space limitations: Calculus texts occupy 2 units of shelf space each, history books 1 unit each, and marketing texts 5 units each, and you can spare at most 1,500 units of shelf space for the texts. If the used book program makes a profit of $20 on each calculus text, $8 on each history text, and $16 on each marketing text, how many of each type of text should you purchase to maximize profit?
Answer:
you should purchase 750 calculus books that will yield $15,000 in profits.
Explanation:
you have to maximize the following equation 20C + 8H + 16M
where:
C = calculus book
H = history book
M = marketing book
the constraints are
C + H + M ≤ 850 (total number of books)
2C + H + 5M ≤ 1500 (maximum amount of shelf-space)
using Solver, the optimal solution is 750 calculus books
If you have a bank account whose principal = $1000, and your bank compounds the interest twice a year at an interest rate of 5%, how much money do you have in your account at the year's end?
g 447,000 397,000 397,000 317,000 79,250 $2,333,000 $1,510,000 $1,361,500 $1,395,500 $715,750 3. Each contract is with a different customer. 4. Any work remaining to be done on the contracts is expected to be completed in 2022. Compute the amount of income (or loss) before selling, general, and administrative expenses for the year ended December 31, 2021, which would be reported under:
Answer:
$225,000 income
Explanation:
The company is using percentage of completion technique for the valuation of construction contracts. It expects the revenue of $1,725,000 for a three year contract whose services are to be delivered every year. The company should record its revenue every year whose services are delivered at the end of the year. The company will only record its revenue as unearned revenue at the start of the year.
Make a list of entrepreneural activities in your own community?
GUYS EMERGENCY i really need help i have a test tomorrow and the class is principal of education can someone plz help me like i beg whoever
no tension I help to to my following please
Roger has just lost a lawsuit and has agreed to make equal annual payments of $15,500 for the next 7 years with the first payment due today. The value of this liability today is $88,000. What is the interest rate on the payments
Answer:
7.615%
Explanation:
we can use the present value of an annuity formula to determine the interest rate:
present value of an annuity due = (payment / i) x (1 + i) x {1 - [1 / (1 + i)ⁿ]}
80,000 = (15,500/ i) x (1 + i) x {1 - [1 / (1 + i)⁷]}
1 - [1 / (1 + i)⁷] = 80,000 / [(15,500/ i) x (1 + i)]
1 - 80,000 / [(15,500/ i) x (1 + i)] = 1 / (1 + i)⁷
(1 + i)⁷ = 1 / {1 - 80,000 / [(15,500/ i) x (1 + i)]}
(1 + i)⁷ = 1 / {[(15,500/ i) x (1 + i) - 80,000] / [(15,500/ i) x (1 + i)]}
1 + i = ⁷√(1 / {[(15,500/ i) x (1 + i) - 80,000] / [(15,500/ i) x (1 + i)]})
1 + i = ⁷√(1 / {[1/i - 64,500] / [(15,500/ i + 15,500)]})
...
after a lot of complicated math,
1 + i = 1.07615
i = 0.07615 = 7.615%
Your boss indicates that the store’s stock/sales ratio is 5:1. This means that _____ should be invested in inventory for every $1 of forecasted sales.
Answer:
5 stocks
Explanation:
This means that 5 stocks should be invested in inventory for every $1 of forecasted sales. That is because an x:y ratio means that for every y amount of something there needs to be an x amount as well. The same applies for the opposite, if there is an x amount of something then a y amount should exist. Therefore, in this scenario for every $1 of sales 5 stocks need to exist.
Here is an example in the lecture. An American sales manager newly posted to Japan. He cancelled an early morning meeting since there was no such meeting in their US headquarter. Therefore, sales representatives did not need to come into the office every day for an early morning meeting before beginning calls to clients Tokyo. However, he found decline in sales performance soon after he cancelled the meeting. Decline in sales performance after cancellation of early morning meeting is because ____ Group of answer choices sales representatives are motivated mostly by peer pressure brought by early morning meeting, which is due to high collectivism. Japanese clients prefer early morning meeting. the American manager has high sensitivity toward uncertainty.
Answer:
sales representatives are motivated mostly by peer pressure brought by early morning meeting, which is due to high collectivism
Explanation:
By cancelling the meeting, sales representatives would have reduced motivation to get clients. The meeting is a source of motivation to the sales representatives.
g compute the underapplied or overapplied overhead.2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry.3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods So
Complete Question:
1. Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $900,000 of total manufacturing overhead for an estimated activity level of 75,000 machine- hours.
During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year:
Machine-hours 60,000
Manufacturing overhead cost $ 850,000
Inventories at year-end:
Raw materials $ 30,000
Work in process
(includes overhead applied of $36,000) $100,000
Finished goods (includes overhead applied of $180,000) $500,000
Cost of goods sold (includes overhead applied of $504,000) 1,400,000
Answer:
Luzadis Company
a) Under-applied overhead:
= Applied overhead Minus Incurred overhead
= $720,000 - $850,000
= $130,000
b) Debit Cost of Goods Sold $130,000
Credit Manufacturing Overhead Applied $130,000
To record underapplied overhead.
c) Debit Work In Process Inventory $6,500
Debit Finished Goods Inventory $32,500
Debit Cost of Goods Sold $91,000
Credit Manufacturing Overhead Applied $130,000
d) The net operating income will be higher by $39,000 if the under-applied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed entirely to Cost of Goods Sold.
Explanation:
a) Data and Calculations:
Estimated overhead cost = $900,000
Estimated activity level = 75,000 MHs
Predetermined overhead rate = $900,000/75,000 = $12
Manufacturing overhead applied = $12 * 60,000 = $720,000
Actual manufacturing overhead incurred = $850,000
Applied Ratio Underapplied
Work in process (overhead applied) $36,000 5% $6,500
Finished goods (overhead applied) $180,000 25% 32,500
Cost of goods sold (overhead applied) $504,000 70% 91,000
Total overhead under-applied $130,000
Block Island TV currently sells large televisions for $380. It has costs of $320. A competitor is bringing a new large television to market that will sell for $360. Management believes it must lower the price to $360 to compete in the market for large televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Block Island TV sales are currently 150,000 televisions per year. What is the change in operating income if marketing is correct and only the sales price is changed? Group of answer choices $6,600,000 $3,000,000 $(6,600,000) ($2,400,000)
Answer:
Effect on income= (2,400,000)
Explanation:
Giving the following information:
Current selling price= $380
New selling price= $360
Unitary cost= $320
Units sold= 150,000*1.1= 165,000
We need to calculate the effect on income:
Effect on income= contribution margin new sales - contribution margin old sales
Effect on income= 15,000*(360 - 320) - 150,000*(380-360)
Effect on income= (2,400,000)
Prove:
New income= 165,000*40= 6,600,000
Actual income= 150,000*(380-320)= 9,000,000
Difference= (2,400,000)
