Given:
Total dividends = $1,075,000
Retained earnings = $3,225,000
Stock outstanding = 715,000 stocks
Benchmark PE = 17.3 times
To find:
Stock price
Solution:
To calculate the stock price, initially we have to calculate the earnings per share,
[tex]\text{Earnings per share} = \frac{\text{(Dividend + addition to retained earnings)}}{\text{Total number of shares}}[/tex]
[tex]\Rightarrow\frac{(600000 + 1800000)}{525000}=4.571428571[/tex]
Now, to calculate the PE ratio,
[tex]\text{PE ratio} = \frac{\text{Stock price}}{\text{EPS}}\Rightarrow\text{Stock price} = \text{PE ratio}\times\text{EPS}[/tex]
[tex]\text{Stock price}=4.571428571\times15.4=\$70.4[/tex]
Therefore, the the stock price would be $70.40 that is, option c.
Final answer:
The appropriate stock price can be calculated based on the P/E ratio, company's earnings, and dividends.
Explanation:
The appropriate stock price can be calculated using the P/E ratio and the company's earnings and dividends. Given that Flex Co. paid total dividends of $1,075,000, and reported additions to retained earnings of $3,225,000, with 715,000 shares outstanding, we can calculate the stock price as $63.36 (option d).
McPupper Steel has products that can be sold as is for $13,000 as is, or could be reworked at a cost of $3,400 and sold for $16,000. What would be the incremental profit or (loss) of reworking and selling the products instead of selling them as is?
Answer:
It is more profitable to sell the product as it is.
Explanation:
Giving the following information:
McPupper Steel has products that can be sold for $13,000, or could be reworked at a cost of $3,400 and sold for $16,000.
To calculate the convenience of continue processing the product, we need to deduct from the final selling price the rework costs and compare it to the original price.
Effect on income= 16,000 - 3,400= $12,600
It is more profitable to sell the product as it is.
West Corp. issued 20-year bonds two years ago at a coupon rate of 8.6 percent. The bonds make semiannual payments. If these bonds currently sell for 107 percent of par value, what is the YTM
23.6
Explanation:
it become right answer
Heath Food Corporation’s bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8%. They pay interest annually and have a 9% coupon rate. What is their current yield?
Answer:
8.55%
Explanation:
For computing the current yield first we have to determine the present value by applying the present value formula which is shown below:
Given that,
Future value = $1,000
Rate of interest = 8%
NPER = 7 years
PMT = $1,000 × 9% = $90
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
After solving this, the present value is $1,052.06
Now the current yield is
= PMT ÷ PV
= $90 ÷ $1,052.06
= 8.55%
The current yield of the bond is 8%.
Explanation:The current yield is the annual interest payment of a bond divided by its current market price. In this case, the bond has a coupon rate of 9% and a face value of $1,000. The yield to maturity is 8%. Since the bonds pay interest annually, the annual interest payment is -
= $1,000 * 9%
= $90.
To find the current yield, we need to determine the current market price of the bond. We can use the following formula:
Current yield = Annual interest payment / Current market price.
Rearranging the formula, we get:
Current market price = Annual interest payment / Current yield.
Substituting the values, we have:
Current market price
= $90 / 8%
= $1125.
Therefore, the current yield of the bond is $90 / $1125, which equals 8%.
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The University of Chicago Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the press were an outside business enterprise. The press also publishes and maintains a stock of books for general sale. The press uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). The following data (in thousands) pertain to 2014:
Direct materials and supplies purchased on credit $800
Direct materials used 710
Indirect materials issued to various production departments 100
Direct manufacturing labor 1,300
Indirect manufacturing labor incurred by various production departments 900
Depreciation on building and manufacturing equipment 400
Miscellaneous manufacturing overhead incurred by various production departments (ordinarily detailed as repairs, photocopying, utilities, etc.) 550
Manufacturing overhead allocated at 160% of direct manufacturing labor costs?
Cost of goods manufactured 4,120
Revenues 8,000
Cost of goods sold (before adjustment for under- or over-allocated manufacturing overhead) 4,020
Inventories, December 31, 2013 (not 2014): Materials Control 100 Work-in-Process Control 60 Finished Goods Control 500
1. Prepare an overview diagram of the job-costing system at the University of Chicago Press.
2. Prepare journal entries to summarize the 2014 transactions. As your final entry, dispose of the year-end under- or over-allocated manufacturing overhead as a write-off to Cost of Goods Sold. Number your entries. Explanations for each entry may be omitted.
3. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated.
4. How did the University of Chicago Press perform in 2014?
Answer:(1) in the diagram, the manufacturing overhead is from indirect cost pool, direct manufacturing labour cost is from under cost allocation base,indirect and direct cost is from under cost object and direct materials and direct manufacturing labour is from under direct cost (2) journal entry total Dr : $25,060, Cr total $25,060 (3) materials inventory controlbalance c/d $90, work in process inventory control balance c/d $2,050, finished good inventory control balance c /d $600 (4) The university of Chicago press performed well in the period under review
Explanation:
Indirect cost pool. Manufacturing overhead
|
Cost Allocation Base. Direct manufacturing
Labour cost
|
Cost object. Allocated manufacturing overhead cost
Direct cost
|
Direct cost. Direct materials, Direct manufmanufacturing Labour
In this diagram, the manufacturing overhead is from indirect cost pool, direct manufacturing labour cost is from under cost allocation base, indirect and direct cost is from under cost object and direct manufacturing labour is from under direct cost
(2)
Journal entry will be
Dr: materials inventory control $800, Cr : Account payable control to record purchase of direct materials $800
Dr : work in process inventory control $710, manufacturing overhead $100, Cr: materials inventory control $810
Dr: work in process inventory control $1,300, manufacturing overhead control $900,Cr : wages payable $2,200 to record manufacturing labour
Dr: Manufacturing overhead control $400,Cr : Accumulated depreciation building and manufacturing equipment $400 to record depreciation of building and equipment
Dr: Manufacturing overhead control $550,Cr : miscellaneous account $550 to record miscellaneous factory overhead
Dr: work in process inventory control $2,080, Cr : Applied manufacturing overhead $2,080 to assign manufacturing overhead to work in process based on direct manufacturing labour
Dr:Finished goods inventory control $4,120,Cr: work in process control $4,120
Dr: Account Receivable inventory control or cash $8,000, Cr : Sales revenue $8,000 to record sales revenue
Dr: Cost of good sold $4,020, Cr: Finished good Inventory control $4,020 to record the cost of good sold
Dr: Applied manufacturing overhead $2,080, Cr: manufacturing overhead control $1,950, cost of good sold $130 to adjust for over application of manufacturing overhead
(3) The T Account is as follows
Materials inventory control
Dr. Cr
$ $
Material control 100. Materials inventory 810
Direct materials purchase 800. Balance c/d 90
----------- -----------
900. 900
--------------- ---------------
Work in process inventory control
Dr. Cr
$ $
Work in process control 60. Finished good Inventory 4,120
Work in process inventory control 710
Direct materials Labour. 1,300
Balance c/d 2,050
------------- -------------
4,120. 4,120
--------------- ----------------
Finished good Inventory control
Dr. Cr
$ $
Finished good control 500. Under or over allocated overhead 4,020
Cost of good manufactured 4,120. Balance c/d 600
--------- -----------
4,620. 4,620
------------ --------------
(4) in the period under review, the university of Chicago performed well.
Here's an outline of the information and the steps to complete the task:
Overview of the job-costing system at the University of Chicago Press:
Direct costs:Direct materials and supplies
Direct manufacturing labor
Indirect costs:
Manufacturing overhead (allocated on the basis of direct manufacturing labor costs)
Cost of goods manufactured:
Beginning work-in-process inventory
Direct materials used
Direct manufacturing labor
Manufacturing overhead applied
Less: Ending work-in-process inventory
Cost of goods sold:
Beginning finished goods inventory
Cost of goods manufactured
Less: Ending finished goods inventory
Journal entries to summarize the 2014 transactions:
Record the purchase of direct materials and supplies on credit:
Debit: Direct materials and supplies (800)
Credit: Accounts payable (800)
Record the use of direct materials:
Debit: Work-in-process control (710)
Credit: Materials control (710)
Record the issuance of indirect materials to various production departments:
Debit: Other manufacturing overhead (100)
Credit: Materials control (100)
Record the incurrence of direct manufacturing labor:
Debit: Work-in-process control (1,300)
Credit: Manufacturing wages payable (1,300)
Record the incurrence of indirect manufacturing labor:
Debit: Other manufacturing overhead (900)
Credit: Manufacturing wages payable (900)
Record the depreciation on building and manufacturing equipment:
Debit: Other manufacturing overhead (400)
Credit: Accumulated depreciation (400)
Record the incurrence of miscellaneous manufacturing overhead:
Debit: Other manufacturing overhead (550)
Credit: Accounts payable (550)
Allocate manufacturing overhead at 160% of direct manufacturing labor costs:
Debit: Work-in-process control (2,080)
Credit: Other manufacturing overhead (2,080)
Close the Work-in-Process Control account to the Finished Goods Control account:
Debit: Finished goods control (1,970)
Credit: Work-in-process control (1,970)
Close the Cost of Goods Manufactured account to the Finished Goods Control account:
Debit: Finished goods control (2,150)
Credit: Cost of goods manufactured (2,150)
Record the cost of goods sold:
Debit: Cost of goods sold (4,020)
Credit: Finished goods control (4,020)
Dispose of the year-end under- or over-allocated manufacturing overhead as a write-off to Cost of Goods Sold:
Debit: Cost of goods sold (130)
Credit: Manufacturing overhead applied (130)
These journal entries provide a comprehensive overview of the University of Chicago Press's job-costing system and summarize the 2014 transactions accurately.
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Identify whether the statements are true or false by dragging and dropping the appropriate term into the bin provided. Long-run economic growth is unlikely to be sustainable because of finite natural resources. In the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. Finding alternatives to natural resources will be very important to long-term economic growth. In the modern economy, human and physical capital are generally less important in productivity than natural resources. In the 19th century, countries with the highest per capita GDP were nearly always abundant in minerals and productive farming land.
Answer: Explanation:
Long run economic growth is unlikely to be sustainable because of finite natural resources. Answer: False
In the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. - False
Finding alternatives to natural resources will be very important to long-term economic growth. - True
In the modern economy, human and physical capital are generally less important in productivity than natural resources. - False
In the 19th century, countries with the highest per capita GDP were nearly always abundant in minerals and productive farming land. - True
The R&R Company's production costs for August are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production equipment, $800; heat, lights and power, $1,000; and insurance on plant and equipment, $200. R&R Company's factory overhead incurred for August is:
A-$2,000.
B-$6,500.
C-$8,500.
D-$21,500.
E-$36,500.
Answer:
The factory's overhead cost is $8,500
Explanation:
First, you have to know what an overhead cost is; An overhead cost is the cost incurred in production that is not direct labor, direct material cost or all direct expenses on production. In this case, let us identify all the direct costs involved in production;
indirect labor = $6,500
property taxes on production = $800
heat, light and power = $1,000
insurance on plant equipment = $200
Therefore, total overhead cost = 6,500 + 800 + 1,000 + 200 = $8,500.
An engineer who is now 65 years old began planning for retirement 40 years ago. At that time, he thought that if he had $1 million when he retired, he would have more than enough money to live his remaining life in luxury. Assume the inflation rate over the 40-year time period averaged a constant 4.1% per year.a) What is the CV purchasing power of his $1 million at age 65
Answer:
The CV purchasing power of his $1,000,000 at age 65 is $200,433.74
Explanation:
The constant-value (CV) purchasing power of the $1 million is calculated using the following formula:
Current dollars = Future dollars / (1 + f)^n where
f = average inflation rate = 4.1% per year = 0.041
n = time period = 40 years
Future dollars = $1,000,000
Substituting these values in the above formula:
Current dollars = $1,000,000 / (1 + 0.041)^40
= $1,000,000 / 4.989
= $200,433.74
Hence, the CV purchasing power of his $1,000,000 at age 65 is $200,433.74.
Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows:
Vaquero Vaquera
Cutting hours 4,000 5,400
Assembly hours 2,850 4,650
Inspection hours 945 2,430
Rework hours 150 450
Required:
Calculate the consumption ratios for the four drivers. Round your answers to two decimal places.
Activity Driver Vaquero Vaquera
Cutting hours
Assembly hours
Inspection hours
Rework hours
Answer:
Attached is the complete questions containing the missing variables:
The activity rates for each activity are stated thus:
Cutting activity rate =$24/cutting hour
Assembly activity rate =$40/ assembly hour
Inspecting activity rate =$20/ inspecting hour
Reworking activity rate=$75/reworking hour
Explanation:
Cutting activity rate =$225600/(4000+5400)=$24/cutting hour
Assembly activity rate =$300000/(2850+4650)=$40/ assembly hour
Inspecting activity rate=$67500/(945+2430)=$20/ inspecting hour
Reworking activity rate=$45000/(150+450)=$75/reworking hour
Obviously you did not include the overheads incurred for each activity in your question,but I have the overhead for each activity in the attached full question with which I computed the required overhead activity rates
Answer:
Vaquero Vaquera
Cutting hours 42.55% 57.45%
Assembly hours 38% 62%
Inspection hours 28% 72%
Rework hours 25% 75%
Explanation:
The question is incomplete, it does not have total capacity for the four activities available but i will assume that the activities maximize consumption and shares it amongst themselves hence to get the consumption ratio from their total.
cutting hours 4000+5400 = 9400
Assembly Hours 2850 + 4650= 7500
Inspection hours 945 + 2430= 3375
Rework hours 150 + 450 = 600
consumption ratio = capacity per activity / total capacity per total activities
Up-Town Express processed 89,233 packages this month. If this is 36.5% less than last month, how many packages did they process last month?A) 30,997
B) 38,567
C) 140,524
D) 130,230
Answer:
X=140.524.4≅140,524 Packages
Correct option is C (140,524)
Explanation:
Given Data:
Up-Town Express processed =89,233 packages this month
Less than last month=36.5%=0.365
Required:
Packages did they process last month=?
Solution:
Let say X is the number of Packages they process last month.
Equation from above data:
89233+0.365X=X
89233=X-0.365X
0.635X=89233
X=89233/0.635
X=140.524.4≅140,524 Packages
Correct option is C (140,524)
The number of packages Up-Town Express processed last month, we calculated the original amount before a 36.5% decrease that resulted in 89,233 packages this month. The calculation shows that last month, they processed option C. 140,524 packages.
To calculate the number of packages Up-Town Express processed last month given that they processed 89,233 packages this month, which is 36.5% less than last month.
To find the original number of packages processed last month, we can see this situation as a percentage decrease problem.
As 89,233 is 63.5% (100% - 36.5%) of the previous month's amount, we can set up a proportion to solve for the original amount.
Let x be the number of packages processed last month. So we have:
63.5% of x = 89,233 packages
To convert 63.5% to a decimal, we divide by 100: 63.5% = 0.635
Therefore:
0.635 × x = 89,233
To find x, divide both sides by 0.635:
x = 89,233 / 0.635
x = 140,524 packages
So the correct answer is C) 140,524, representing the number of packages processed by Up-Town Express last month.
A customer wants to implement a wireless network in a historic location, but is concerned about the structural and aesthetic impact to the facility. Which benefit of using wireless mesh addresses these concerns?
A. Power is required only at the installation location.
B. The APs do not have LED lights.
C. More wireless channels can be supported.
D. APs do not need network connections.
Answer:
D-APs do not need network connections.
Explanation:
The benefit of using wireless mesh which addresses the concerns of the
customer who wants to implement a wireless network in a historic location, but is concerned about the structural and aesthetic impact to the facility is that APs do not need network connections because it is easily set up and does not required an access point.
You are the supervisor of an employee who just learned that she did not receive the promotion she had anticipated. You call her into your office and ask her to discuss her reaction. What type of listening are you engaged in?
a. Casual listening
b. Listening for information
c. Intensive listening
d. Empathetic listening
Answer:
The correct answer is letter "D": Empathetic listening.
Explanation:
Empathetic listening is used in cases when people must be heard more than in a situation when two parties want to come up to a solution. Empathetic listening goes beyond active listening because it requires the listening party to put in the other party's shoes. Most often, empathetic listening has the mission of deeply understanding others' points of view.
Consider a $2,700 deposit earning 6 percent interest per year for 9 years. How much total interest is earned on the original deposit (excluding interest earned on interest)?
Answer:
Total interest earned on the original deposit=$403.593
Explanation:
Total Interest earned after 6 years using compound Interest:
[tex]FV=PV(1+i)^n[/tex]
Where:
PV is the deposit amount
i is the interest Rate
[tex]FV=\$2,700(1+0.06)^9[/tex]
FV=$4561.593
Total Interest earned after 6 years=FV-PV
Total Interest earned after 6 years=$4561.593-$2,700
Total Interest earned after 6 years=$1861.593
Total Interest earned after 6 years using single Interest:
Total Interest=$2,700*0.06*9
Total Interest =$1458
Total interest earned on the original deposit=Total Interest earned after 6 years-Total Interest
Total interest earned on the original deposit=$1861.593-$1458
Total interest earned on the original deposit=$403.593
Charlie Corporation's adjusted trial balance included the following items (all account balances are normal): Accounts payable $65,000, Accounts receivable $33,000, Capital stock $100,000, Cash $50,000, Dividends $10,000, Goodwill $47,000, Interest expense $4,000, Interest payable $2,000, Inventory $36,000, Notes payable $80,000, Prepaid expenses $5,000, Property, plant & equipment $123,000, Retained earnings $46,000, Rent expense $18,000, Revenues $101,000, and Salary expense $60,000. How much are total assets?
Answer:
$294,000
Explanation:
Asset are resources controlled and owned by a company from which future economic benefits will flow to the entity.
Asset may be current or non current based on how soon they can be realized. Assets usually have debit balances and it is an element of the balance sheet. Examples of assets include Accounts receivable, cash, land, equipment, prepayments, Inventory etc.
Total Assets
= $33,000 + $50,000 + $36,000 +$5,000 + $123,000 + $47,000
= $294,000
What type of adjustment is Completed services that were paid for six months earlier, $1,070? The Service Revenue unadjusted balance as of December 31 is $10,300. The Unearned Revenue balance as of December 31 is $11,600
Answer:
Unearned Revenue Balance $10530
Service revenue Balance $11370
Explanation:
given data
time = 6 month
Completed services paid = $1,070
Service Revenue unadjusted = $10,300
Unearned Revenue balance = $11,600
solution
Unearned Revenue
31-Dec $11,600
31-Dec $1070
Balance $11,600 - $1070
Balance $10530
and
Service revenue
31-Dec $10,300
31-Dec $1070
balance $10,300 + $1070
Balance $11370
The question concerns an accounting adjustment of Unearned Revenue, which occurs when a service paid for in advance has been completed. This kind of adjustment involves moving a specified amount from 'Unearned Revenue' to 'Service Revenue'. In this example, that amount is $1,070.
Explanation:The adjustment being referred to in this scenario would be for Unearned Revenue. Unearned revenue, also known as deferred revenue, refers to payments received by a company for goods or services that have yet to be provided. In this instance, the service was paid for six months earlier but has just been completed. Therefore, an adjustment must be made to move the $1,070 from Unearned Revenue (a liability account) to the Service Revenue (an income statement account).
The entries will be as follows:
Debit (decrease) Unearned Revenue - $1,070.
Credit (increase) Service Revenue - $1,070.
So after this adjustment, the balances in the accounts would be,
Service Revenue unadjusted balance as of December 31, would be $11,370 ($10,300 + $1,070).
The Unearned Revenue balance as of December 31, would be $10,530 ($11,600 - $1,070).
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Campus Theater adjusts its accounts every month. The company's unadjusted trial balance dated August 31, current year, appears as follows. Additional information is provided for use in preparing the company’s adjusting entries for the month of August. (Bear in mind that adjusting entries have already been made for the first seven months of current year, but not for August.)
CAMPUS THEATER
UNADJUSTED TRIAL BALANCE
AUGUST 31, CURRENT YEAR
Cash $ 24,000
Prepaid film rental 37,440
Land 144,000
Building 201,600
Accumulated depreciation: building $16,800
Fixtures and equipment 43,200
Accumulated depreciation: fixtures and equipment 14,400
Notes payable 216,000
Accounts payable 5,280
Unearned admissions revenue (YMCA) 1,200
Income taxes payable 5,688
Capital stock 48,000
Retained earnings 55,932
Dividends 18,000
Administrative Revenue 366,240
Concessions revenue 17,220
Salaries expense 82,200
Film rental expense 113,400
Utilities expense 11,400
Depreciation expense: building 5,880
Depreciation expense: fixtures and equipment 5,040
Interest expense 12,600
Income taxes expense 48,000
$ 746,760 $746,760
Other Data
Film rental expense for the month is $18,240. However, the film rental expense for several months has been paid in advance.
The building is being depreciated over a period of 20 years (240 months).
The fixtures and equipment are being depreciated over a period of five years (60 months).
On the first of each month, the theater pays the interest that accrued in the prior month on its note payable. At August 31, accrued interest payable on this note amounts to $1,800.
The theater allows the local YMCA to bring children attending summer camp to the movies on any weekday afternoon for a fixed fee of $600 per month. On June 28, the YMCA made a $1,800 advance payment covering the months of July, August, and September.
The theater receives a percentage of the revenue earned by Tastie Corporation, the concessionaire operating the snack bar. For snack bar sales in August, Tastie owes Campus Theater $2,700, payable on September 10. No entry has yet been made to record this revenue. (Credit Concessions Revenue.)
Salaries earned by employees, but not recorded or paid as of August 31, amount to $2,040. No entry has yet been made to record this liability and expense.
Income taxes expense for August is estimated at $5,040. This amount will be paid in the September 15 installment payment.
Utilities expense is recorded as monthly bills are received. No adjusting entries for utilities expense are made at month-end.
Required:
For each of the numbered paragraphs, prepare the necessary adjusting entry.
Answer:
Debit Rental expense $18,240 Credit Prepaid Rent expense $18,240
Debit depreciation$840 Credit Accumulated depreciation on Building $840
Debit depreciation $720 Credit Accumulated depreciation on fixtures and equipment $720
Debit Interest expense $1,800 Credit Accrued interest payable $1,800
Debit Unearned admission Revenue $600 Credit Revenue $600
Debit Accounts Receivable $2,700 Credit Concession Revenue $2,700
Debit Salaries expense $2,040, Credit Salaries Payable $2,040
Debit Income tax Expense $5,040 Credit Current Tax Payable $5,040
Debit Utility expense $12,600 Credit Utility bills $12,600
Explanation:
Depreciation : Building = 201,600/240 = $840
The necessary adjusting entries for Campus Theater's accounts for the month of August are provided.
Explanation:To prepare the necessary adjusting entries, we need to consider the additional information provided. Here are the adjusting entries for each numbered paragraph:
To record the film rental expense for the month of August, we need to debit Film Rental Expense and credit Prepaid Film Rental for $18,240.To record the monthly depreciation expense for the building, we need to debit Depreciation Expense: Building and credit Accumulated Depreciation: Building for $728.To record the monthly depreciation expense for the fixtures and equipment, we need to debit Depreciation Expense: Fixtures and Equipment and credit Accumulated Depreciation: Fixtures and Equipment for $840.Learn more about Adjusting entries here:https://brainly.com/question/28867174
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Bridgeport Company sold $8,780 of its specialty shelving to Elkins Office Supply Co. on account. Bridgeport estimates that an additional $215 in allowances will be granted to Elkins. Prepare the entries when (a) Bridgeport makes the sale. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (b) Bridgeport grants an allowance of $722 when some of the shelving does not meet exact specifications but still could be sold by Elkins. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (c) at year-end. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Statement is given below.
Explanation:
Prepare the necessary journal entries as shown below:
Date Accounts Title and Explanation Ref. Debit Credit
a Accounts Receivable $ 8:780
Sales Revenue $ 8380
(To record the sales made on account)
Sales Returns and Allowances $ 215
Provision for Sales Return and Allowances $ 215
vTo record the estimated allowance on sales
b Sales Returns and Allowances ($722-$215) $ 507
Provision for Sales Return and Allowances $ 215
Accounts Receivable $ 722
(To record the allowance granted towards sales
returns)
c No entry
(Since the cash is not received and hence no
adjustment needed)
The sale of shelving is recorded by debiting Accounts Receivable and crediting Sales Revenue. An allowance is recorded by debiting Sales Returns and Allowances and crediting Accounts Receivable. At the year-end, an entry may be needed if additional allowances are anticipated.
When Bridgeport Company makes the sale of specialty shelving worth $8,780 to Elkins Office Supply Co., the corresponding accounting entries are as follows:
Debit Accounts Receivable for $8,780.Credit Sales Revenue for $8,780.
Upon granting an allowance of $722 when some shelving does not meet specifications, the entries are:
Lastly, at year-end, if the previously estimated allowance of $215 has not been granted, no additional entry is needed beyond the $722 actual allowance already recorded. If Bridgeport still anticipates granting the additional $215 allowances, it would make the following entry:
Debit Sales Returns and Allowances for $215.Credit Allowance for Sales Returns and Allowances (a contra account to Accounts Receivable) for $215.shows Cost of Sales of $74,000, Administrative Expenses of $20,000, Rental Expenses of $12,000, Interest Revenue of $33,000, Interest Expense of $15,000, and Net Income after Taxes of $60,000. Assuming there are no other items to be considered and that the Income Taxes are 25% of Net Income before Taxes, what is sales revenue
Answer:
The Sales Revenue is $168,000
Explanation:
As we know Net income before tax is calculated by deducting the cost of sales and other operating expenses from sales. We will add back all the expenses to reach at sales amount.
Net incomes before tax then divided into two portion Tax and net income after tax on the basis of tax percentage.
Net income before tax = Net income after tax + Tax
Net income before tax = $60,000 + ( 60,000 x 25% / 75% ) = $60,000 + $20,000 = $80,000
Net income before tax = Sales + other income - Cost of Sales - ( Operating Expenses)
$80,000 = Sales + $33,000 - $74,000 - ( $20,000 + $12,000 + $15,000 )
$80,000 = Sales - $41,000 - $47,000
$80,000 = Sales - $88,000
Sales = 80,000 + $88,000
Sales = $168,000
Elaine is a secretary for a business. One day a customer comes in to file a new contract while Elaine is seated at her boss’s desk. The customer assumes Elaine is a person of authority, and Elaine is knowledgeable enough to help the customer file the contract.
Which response aligns best with this situation?
a) Enforceable via factor agent
b) Enforceable or unenforceable - no agency
c) Enforceable via employee agent
d) Enforceable or unenforceable w/ agency
Answer:
The answer is c:
Enforceable via employee agent
Explanation:
The definition of agency law deals with agent-principal relationships; that is a relationship where one party has the legal authority to act in place of another. Relationships that are commonly associated with agency law include employer-employee, administrator-decedent or executor, and guardian-ward.
Agreements that result in the formation of agency-type relationships can be implied or express, and both the principal and the agent can be an entity (such as partnership or corporation) or individual.
Here in the given situation, since, Elaine is an employee of the business and knowledgeable enough to deal with the contract filing, it is implied that she is acting as an employee agent, that she can help the customer in filing the contract.
Final answer:
The contract is enforceable via Elaine as an employee agent, since she acted within the scope of her employment and the customer reasonably assumed she had the authority to file the contract on behalf of the company.
Explanation:
Considering the situation where Elaine, a secretary, is assumed to be a person of authority by a customer and helps the customer file a contract, the response that aligns best with this situation is enforceable via employee agent. As an employee of the company who is knowledgeable and has acted within the scope of her employment by helping a customer file a contract, it is implied that Elaine has the authority to perform such tasks. In legal terms, this concept is known as the 'apparent authority' or 'ostensible authority' where the actions of the employee bind the employer because the customer reasonably believed Elaine had the authority to act on behalf of the company.
Requirement 4. Zeke's top management is deciding whether to embark on a $ 190 comma 000 advertising campaign. The marketing firm has projected annual sales volume to increase by 18% as a result of this campaign. Assuming that the projections are correct, what effect would this advertising campaign have on the company's annual operating income?
Answer: It will increase the company's annual operating income by 18%.
Explanation: Operating income is an accounting and finance term which is known as the total amount generated by a business Organisation after the total costs that are associated with the operations and the tax have been deducted from the total revenue generated during the period under review.
AN OPERATING INCOME CAN BE CALCULATED YEARLY OR ANNUALLY (ANNUAL OPERATING INCOME).
The higher the operating income the higher the profit margin earned by the business Organisation.
Final answer:
An advertising campaign increasing sales by 18% would boost the company's operating income to $16,400 from $15,000.
Explanation:
To determine the effect of the advertising campaign on the company's annual operating income, we need to consider the increase in sales volume and its impact on revenue, as well as any associated costs.
First, we calculate the increase in revenue resulting from the increase in sales volume:
Increase in revenue=Initial sales × Percentage increase
Then, we calculate the impact of the advertising campaign on the operating income:
Impact on operating income =Increase in revenue −Advertising campaign cost
Impact on operating income=Increase in revenue−Advertising campaign cost
Profit = Revenue - Costs
Given: Existing Profit = $15,000, Increase in Sales = 18%
New Profit after Advertising = Existing Profit + (18% * Existing Profit) - $190,000
Therefore, the company's annual operating income would be $16,400.
If a company is considering the purchase of a parcel of land that was acquired by the seller for $94,000 is offered for sale at $168,000, is assessed for tax purposes at $104,000, is considered by the purchaser as easily being worth $158,000, and is purchased for $155,000, the land should be recorded in the purchaser's books at:
Complete Question:
If a company is considering the purchase of a parcel of land that was acquired by the seller for $94,000, is offered for sale at $168,000, is assessed for tax purposes at $104,000, is recognized by the purchaser as easily being worth $158,000, and is purchased for $155,000, the land should be recorded in the purchaser's books at:
Multiple Choice
$155,000.
$104,000.
$158,000.
$156,500.
$168,000.
Answer:
Since the parcel of land is purchased by the company for $155,000, hence the land should be recorded in the purchaser's books at $155,000.
Explanation:
In case of a fixed asset, a debit of the property account, and a credit to cash or payable funds, or a note payable, based on whether it is a cash transaction, debt acquisition or default, are known as a balance sheet asset.
A provision on the register of deeds and other land rights. Also the preference between parties seeking rights in the same property is decided by a recording statute. See the state of the team, state of a note and status of a non-alert (3 key categories of recordings).
It costs Bonita Company $17.9 of variable costs and $8.0 of fixed costs to produce its product that sells for $39. Carla Vista Company, a foreign buyer, offers to purchase 3800 units at $23.1 each. If the special offer is accepted and produced with unused capacity, net income will:__________
Answer:
Decrease by $10,640
Explanation:
The unused capacity ordinarily will not change the fixed component of cost but will increase the variable cost hence the net income increase or decrease is know as net contribution margin. However, given the fixed cost as a unit cost, it will be affected by the offer of accepted.
Net income is the result of sales less cost where the cost is made of the fixed and variable portions.
Net income increase/(decrease)
= 23.1 (3800) - 3800(17.9 + 8)
=3800( 23.1 - 25.9)
= ($10,640)
Accepting the offer will result in a decrease in net income
If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $8 per direct labor-hour, what is the estimated unit product cost? (Round your answer to 2 decimal places.)
Answer:
$52
Explanation:
The complete question and the solution is attached in the pictures
The unit product cost includes only the variable manufacturing costs. Assuming one labor hour for one unit, the estimated unit product cost would be $8.00. Changes in the manufacturing time will directly affect the unit product cost.
Explanation:The unit product cost under variable costing includes only the variable manufacturing costs. As stated, you don't have any fixed manufacturing overhead in this case, only a variable manufacturing overhead of $8 per direct labor hour. Hence, if it's assumed that one unit takes one labor hour to produce, then the estimated unit product cost would be $8.00. However, if a product takes more or less time to manufacture, the cost would be higher or lower respectively. For example, a product that takes 2 hours to manufacture would cost $16 under this system.
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The future of cities in the United States and in other countries will be determined by their ability to benefit from the _________________ and to minimize or counterbalance the ______________________.
Answer:
The correct answer is letter "B": Economies of agglomeration; corresponding diseconomies.
Explanation:
Economies of agglomeration refer to a type of economy in which companies are located one close to another to take advantage of their core competencies. This economic structure typically helps businesses to reduce relocation and delivery costs increasing their profits but in some other cases, the costs could increase if some of the firms lost their economies of scale.
Thus, metropolises in the U.S. must find ways to boost the benefit of economies of agglomeration minimizing the negative effects of the diseconomies of scale in which some firms might fall.
The future of cities in the United States and in other countries will be determined by their ability to benefit from the economies of scale and to minimize or counterbalance the negative externalities.
The term economies of scale refers to the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.
Cities can benefit from economies of scale in various ways, such as through more efficient public transportation systems, better use of infrastructure, and a larger pool of human capital.
These benefits can lead to increased productivity and economic growth, which are crucial for the future development of cities.
The future of cities is likely to be shaped by how effectively they can harness the advantages of being large population centers while also addressing and mitigating the adverse effects that come with urbanization.
By doing so, cities can become more sustainable, livable, and economically vibrant places.
Suppose an economist tests the theory that when the price of leather increases, fewer pairs of shoes are produced. He observes more shoes being produced when the price of leather increases. At the same time, a new production technology allowed for more shoes to be produced in less time.
He:
a. has confused association and causation.
b. cannot test his theory because his observations violate the ceteris paribus assumption.
c. used normative economics to answer a positive question.
d. built a model with too many variables.
Answer:
b. cannot test his theory because his observations violate the ceteris paribus assumption
Explanation:
As per the law of supply, when price of an input rises, quantity supplied of a good falls, keeping other factors affecting supply as constant (ceteris paribus).
Leather and Shoes are complimentary goods in the sense that leather serves as an input for the product i.e shoes. So if the price of leather rises, production of shoes would fall, keeping other factors constant.
When the price of an input rises, the quantity supplied falls, keeping other factors affecting supply as constant.
In the given case, the price of inputs has increased and yet the production of shoes has increased owing to an advancement in the technology. Technology is a different determinant of quantity supplied and considered as an other factor affecting supply.
The economist's observations were affected by an unnoticed variable - the new production technology. Therefore, the economist could not accurately test his theory about the relationship between the price of leather and shoe production due to violating the ceteris paribus assumption.
Explanation:The economist in your question is trying to test the theory that when the price of leather increases, fewer pairs of shoes are produced. However, he observes the opposite. He observes an increase in shoe production when the price of leather increases. His observations may not necessarily be incorrect, but he has failed to consider a critical assumption in economics, called the ceteris paribus assumption.
This assumption implies that 'all other things being equal.' In reality, the economist identified that a new production technology was introduced which allows for more efficient production. Therefore, when trying to assess the impact of leather price increases on shoe production, not all things remain unchanged. As a result, the correct answer to your question would be: b. he cannot test his theory because his observations violate the ceteris paribus assumption.
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Adams Enterprises’ noncallable bonds currently sell for $1,120. They have a 15-year maturity, an annual coupon of $85, and a par value of $1,000. What is their yield to maturity? 5.84% 6.15% 6.47% 6.81% 7.17%
Answer: 7.17%
Explanation:
Given,
YTM = ?
Annual Coupon, C = $85
Par Value, F = $1000
Current Bond Price, p = $1120
Maturity Year, n = 15
The yield to maturity is 7.17% from the data given in the question above. We will use the yield to maturity formula which stated as YTM = C + [(F-P)/n] / [(F+P)/2] where YTM is the yield to maturity,
C is the annual coupon,
F is the par value,
p is the current bond price, and
n is the maturity year.
YTM = 85 + [(1000-1120)/15] / [(1000+1120)/2]
YTM = 7.17%
Your cousin is currently 10 years old. She will be going to college in 8 years. Your aunt and uncle would like to have $ 105 comma 000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 4.1 % per year, how much money do they need to put into the account today to ensure that they will have $ 105 comma 000 in 8 years?
Answer:
$76,134.84
Explanation:
Data provided in the given question
Future value = $105,000
Fixed interest rate = 4.1%
Number of years = 8
The calculation of present value is given below:-
= Future value ÷ (1 + rate of return)^number of years
= $105,000 ÷ (1 + 4.1%)^8
= $105,000 ÷ 1.379132002
= $76,134.84
Therefore, we simply applied the present value formula.
What is the maximum amount of write-downs (defaults) the bank could sustain without becoming insolvent (bankrupt)? Values are millions of dollars. Assets Liabilities Reserves $60 Transaction Deposits $500 Bonds $400 CDs $300 Loans $600 Equity _____
Answer:
The Equity for the bank will be $260
Explanation:
Assets of the banks are
Reserve = $60
Bond = $400
Loans = $600
Total Asset = $1,060
Liabilities of the banks are
Deposit = $500
CD's: = $300
Total Liabilities = $800
Equity = Asset - Liabilities
Equity = $1,060 - 800
Equity = 260
The maximum amount of the bank to sustain without becoming insolvent their Equity is $260
A department adds all materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work in process; 40600 units were completed and transferred out; and there were 20000 units in the ending work in process that were 30% complete. During July, $96960 materials costs and $97860 conversion costs were charged to the department.
The unit production costs for materials and conversion costs for July was _______.
Answer:
The unit costs for materials is $1.62 per unit
The unit costs of conversion costs is $2.13 per unit
Explanation:
In determining the the unit production costs for materials and conversion costs, it is very important to calculate equivalent number of units applicable to materials as well as the one applicable to conversion costs
Equivalent units for materials
Completed units 40000 @100% complete 40000
Ending inventory 20000@ 100% complete 20000
60000
Equivalent units for conversion costs
Completed units 40000@100% 40000
Ending inventory 20000 @ 30% complete 6000
46000
unit production costs of materials=$96960/60000=$1.62 per unit
unit production costs of conversion costs=$97860/46000=$2.13 per unit
Loyal Pet Company expects to sell 7 comma 000 beefy dog treats in January and 5 comma 000 in February for $ 2.00 each. What will be the total sales revenue reflected in the sales budget for those months?
Answer:
January:
Sales revenue= $14,000
February:
Sales revenue= $10,000
Explanation:
Giving the following information:
Sales:
January= 7,000 units
February= 5,000 units
Selling price= $2
The sales revenue reflected in the sales budget is the result of multiplying the number of units sold with the selling price.
January:
Sales revenue= 7,000*2= $14,000
February:
Sales revenue= 5,000*2= $10,000
Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine-hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,200 machine-hours, with the following data being available for the first six months of the year:
Month Utilities Machine Hours
January $8,700 800
February $8,360 720
March $8,950 810
April $9,360 920
May $9,625 950
June $9,150 900
Using the high-low method, the utilities cost associated with 1,110 machine hours would be _____.
Answer:
The utilities cost associated with 1,110 machine hours will be $10,505.
Explanation:
High Low method is a way to calculate the variable and fixed cost element of total cost using lowest level of activity and its cost and highest level of activity and its cost.
In this example The Highest activity of Machine hour is in the month of May and Lowest activity is in February.
Using high low method:
Variable cost = ( Highest activity cost - Lowest activity cost ) / ( Highest activity - Lowest activity )
Variable cost = ( Cost in May - Cost in February ) / ( Machine hours in May - Machine Hours in February)
Variable cost = ( $9,625 - $8,360 ) / ( 950 - 720 )
Variable cost = $1,265 / 230
Variable cost = $5.50 per machine hour
Fixed Cost = $8360 - ( 720 x $5.5) = $8360 - $3960 = $4,400
Utility cost of 1110 units = $4,400 + ( 1,110 x 5.5 ) = $4400 + $6,105 = $10,505