Answer:
The forced sale is also accounted as disposal and any net gain or loss is reported in income statement. The accounting enteries are given below.
April 1, 2020.
Debit Cash Asset $ 447,200
Debit accumulated depreciation $ 166,400
Credit Land Asset $ 62,400
Credit Building Asset $ 291,200
Credit Profit on Disposal $ 260,000
August 1, 2020
Debit Land Asset $ 93,600
Debit Building Asset $ 416,000
Credit Cash Asset $ 509,600
Crystal owns a bookstore. A period of economic turmoil adds a great deal of uncertainty to her sales forecasts. She decides to hold additional funds in the store's account to guard against the possibility of lower-than-expected sales. This is an example of an increase in Crystal's demand for money.True or false?
Answer:
True
Explanation:
In monetary economics, the demand for money is the total amount of the asset an individual prefer to keep in liquid or near liquid forms rather than investment. Some of the factors that influences the demand for money are interest rate, inflation, income, e.t.c.
John Maynard Keynes postulated that the demand for money falls within the realms of liquidity preference, which he summarized under three headings, these are, the transactions motives, the precautionary motives, and the speculative motives.
Which level of PPE uses APR/PAPR and also includes a chemical/splash over garment, double gloves and chemical resistant boots?
Level B of PPE usage includes the use of APR or PAPR, a chemical/splash overgarment, double gloves, and chemical-resistant boots. It is often used in situations involving hazardous materials.
Explanation:The level of Personal Protective Equipment (PPE) that uses Air-Purifying Respirators (APR) or Powered Air-Purifying Respirators (PAPR), and includes a chemical/splash overgarment, double gloves, and chemical-resistant boots is Level B protection. This level is utilized when the type of airborne substance is known, and measurable but requires a high level of respiratory protection but less skin protection. This level of protection is commonly used during situations involving hazardous materials, such as dealing with spills of chemical substances.
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Entrepreneurial endeavors consist of new business venturing, innovativeness, self-renewal, and reactiveness. a. True b. False
Answer:
Entrepreneurial endeavors consist of new business venturing, innovativeness, self-renewal, and reactiveness
True
Explanation:
Entrepreneur entails when one is his/her own boss, he or she determines the time, mode of running the business,innovations, capital, creativity, packaging, branding among others.
Billy’s Exterminators, Inc., has sales of $749,000, costs of $306,000, depreciation expense of $58,000, interest expense of $39,000, a tax rate of 35 percent, and paid out $73,000 in cash dividends. The firm has 100,000 shares of common stock outstanding.
What is the earnings per share?
What is the dividends per share?
Answer:
Earnings per share = $2.25
Dividend per share = $0.73
Explanation:
given data
sales = $749,000
costs = $306,000
depreciation expense = $58,000
interest expense = $39,000
tax rate = 35 percent
paid out dividends = $73,000
no of share = 100,000
solution
first we get here Net income that is
Net income = Profit before tax (PBT) - Tax .........1
EBIT = sales - costs - depreciation expense
EBIT = $749,000 - $306,000 - $58,000
EBIT = $385,000
and
Profit before tax = EBIT - interest = $385,000 - $39,000 = $346,000
tax is = 35 % of Profit before tax
tax = 35% of $346,000 = $121,100
so
Net income = $346,000 - $121,100
Net income = 224,900
and
Earnings per share will be here as
Earnings per share = Net income ÷ Number of shares ..................2
Earnings per share = [tex]\frac{224900}{100000}[/tex]
Earnings per share = $2.25
and
Dividend per share will be here as
Dividend per share = Cash dividends ÷ Number of shares .....................3
Dividend per share = [tex]\frac{73000}{100000}[/tex]
Dividend per share = $0.73
Each of the following is correct regarding treasury stock except that it has been
a. retired.
b. issued.
c. reacquired.
d. fully paid for.
Final answer:
Treasury stock refers to the shares of a company's own stock that it has bought back from shareholders. It is not actively traded and is considered retired. It is reacquired by the company and fully paid for.
Explanation:
Treasury stock refers to the shares of a company's own stock that it has bought back from shareholders. Each of the following statements is correct regarding treasury stock except that it has been issued. Treasury stock is not actively traded and is considered retired. It is reacquired by the company and fully paid for.
The correct answer is that treasury stock has not necessarily been retired. Unlike retired shares, treasury stock consists of shares that have been issued and fully paid for, which are then reacquired by the company and held in its treasury. These shares can be reissued, sold, or retired at a later date, depending on the company's decision. Treasury stock reduces shareholders' equity and does not pay dividends or have voting rights while held by the company.
Universal Containers has successfully implemented a large Service Cloud rollout for their national call center 3 months ago.
true/false
Answer:
True.
Explanation:
Universal Container has implemented a large service cloud roll out almost 3 months ago at their national call center successfully, but agents are having trouble to open the cases for united automotive whenever they try to create a new case. There were more than 15000 open cases but the problem appears again.
The financial statement that organizes costs by their behavior instead of by their function is the
Answer:
The correct answer is: contribution margin income statement.
Explanation:
The contribution margin income statement organizes costs by behavior and not by function thus it is not used for financial reporting. The variable expenses are deducted from sales to be recorded at a contribution margin. Fixed expenses are subtracted from the net profit obtained at the end of the accounting period.
Carla Vista Company ended its fiscal year on July 31, 2020. The company’s adjusted trial balance as of the end of its fiscal year is as follows. prepare closing entries
Closing entries involve zeroing out of all Revenue, Expense and Dividend accounts and transferring their balances to Retained Earnings. This sets these accounts to zero for the upcoming fiscal year. An example procedure of closing entries includes closing revenue and expenses accounts to the Income Summary account and then further closing the Income Summary to Retained Earnings.
Explanation:The act of closing entries involves zeroing out all Revenue, Expense, and Dividend accounts and transferring their balances to Retained Earnings at the end of the accounting period. This process resets the Revenue, Expense, and Dividend accounts to zero at the start of the new fiscal year.
Here's an example of how these closing entries might look:
First, we close the revenue accounts to the Income Summary account. The debit from the revenues accounts (which will be on the credit side) are credited to the Income Summary. Second, the expenses are also closed to the Income Summary account. The credits from the expenses (which will be on the debit side) are debited to the Income Summary. Third, we close the Income Summary account to Retained Earnings. If after the first two entries, the balance of the Income Summary account is credit (which means a profit), then this third closing entry will be a debit to Income Summary and a credit to Retained Earnings.Finally, if there are dividends, a closing entry will be established which debits Retained Earnings and credits Dividends.Learn more about Closing Entries here:https://brainly.com/question/33762472
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Exercise 1-4 Calculate net income and stockholders equity (LO2) Eagle Corp. operates Magnetic Resonance Imaging (MRI) clinics throughout the Northeast. At the end of the current period, the company reports the following amounts: Assets = $38,000; Liabilities = $21,000; Dividends = $1,800; Revenues = $11,600; Expenses = $7,800. Required: 1. Calculate net income. Net income 2. Calculate stockholders' equity at the end of the period. Stockholders' equity
Answer:
(a) $3,800
(b) $17,000
Explanation:
Given that,
Assets = $38,000;
Liabilities = $21,000;
Dividends = $1,800;
Revenues = $11,600;
Expenses = $7,800
Net income:
= Revenue - Expenses
= $11,600 - $7,800
= $3,800
stockholders' equity at the end of the period:
= Assets - Liability
= $38,000 - $21,000
= $17,000
Therefore, the net income is $3,800 and stockholder's equity is $17,000.
Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. Gross income $ 25,240,000 Total sales 24,324,000 Total credit sales 18,785,000 Net income 2,975,000 Cost of goods sold 12,600,000 Total assets 10,550,000 Average inventory 2,875,000 Average receivables 3,445,000 a. Compute the receivable turnover ratio.
Answer:
Receivable turnover ratio is 5.4528
Explanation:
Receivable turnover ratio:
It is used to measure how efficiently a company or firm is issuing the credits to its customers and collection g funds from them. It is a measure how assets are used by the company efficiently.
Formula:
Receivable turnover ratio=(Total credit Sales)/ (Average receivables)
[tex]Receivable\ turnover\ ratio=\frac{\$18,785,000}{\$3,445,000} \\Receivable\ turnover\ ratio= 5.4528[/tex]
It is unit less.
Receivable turnover ratio is 5.4528
Journalize the entries to record the following selected bond investment transactions for Starks Products: If an amount box does not require an entry, leave it blank. a. Purchased for cash $66,000 of Iceline, Inc. 9% bonds at 100 plus accrued interest of $990
Answer:
The journal entries are:
Dr Bond Receivable 66,000
Dr Interest Receivable 990
Cr Cash 66,990
(to record the purchase of Iceline, Inc. 's bonds)
Explanation:
The purchase include the following deliverables:
+ The bond at the price of $66,000
+ The interest receivables that the seller(s) is/are eligible to receive, yet, they transfer the rights to the buyers. This amount is recorded at $990 as Buyer's receivable because as bond holder, Buyers are eligible to receive that. Noted that this is not qualified to be recorded as Interest Income for Bond's Buyers because the Buyers do not hold the bond at all before the purchase, thus, they should not recorded any interest income from the coupon receipt.
=> Total Cash spent for the purchase is $66,990 ( $66,000 + $990).
A limited liability company:
a. can only have a single owner.
b. is comprised of limited partners only.
c. is taxed similar to a partnership.
d. is taxed similar to a C corporation.
e. generates totally tax-free income.
Answer:it's C or D
Explanation:
Suggest some personal traits of leaders you have known. What traits do you believe are most valuable? Why
Explanation:
I am listing below significant personal traits of a leader:
Initiating any task or voluntaryTaking completing responsibility of the task handled by the leader's teamGood motivating skillA great negotiation skillAcceptable interpersonal skillGood level of patientsA good communicatorHand-holding skillAccepting facts and criticismHaving a good attitudeEager to learn new thingsMulti-tasking - ability to manage multiple taskThe main important is creating leaders from his team
Final answer:
Leadership traits such as empathy, integrity, and communication skills contribute to an individual's effectiveness as a leader exemplified by figures like Abraham Lincoln. Charismatic leaders can inspire during crises through their visionary approach, while socialized charismatic leaders focus on collective interests and empowerment.
Explanation:
Leadership traits vary widely among individuals and can be particularly influenced by the context in which a leader operates. When reflecting on Abraham Lincoln's personality, his effectiveness as a leader was largely attributed to his emotional intelligence, ability to communicate, and his integrity. Lincoln demonstrated empathy, had excellent oratory skills, and showed commitment to principles of equality and union. Unlike Lincoln, Jefferson Davis did not exhibit the same level of charismatic authority and struggled with internal disputes and lacked the strong rapport with the public that Lincoln maintained.
Charismatic leaders often emerge during periods of crisis and can harness their personal qualities to influence and motivate followers. They may possess traits such as confidence, determination, and visionary insights, inspiring loyalty and extraordinary efforts among their supporters. Leaders like Mohandas Gandhi exemplified both charismatic and legal-rational authority, showing that leadership can encompass multiple styles. Personalized leaders, who may exhibit narcissistic tendencies, contrast greatly with socialized charismatic leadership, which focuses on empowerment, altruism, and collective interest.
Different leadership styles resonate with various individuals. Some may prefer transformative leaders who inspire through vision and innovation, while others might gravitate toward servant leaders who prioritize the needs of their team or community. People's preferences can be influenced by their own personal values or the particular environment they are in, such as the workplace, classroom, or on a sports team.
On July 8, Action Co. issued a $70,000, 6%, 120-day note payable to Scanlon Co. Assuming a 360-day year, what information is needed to calculate the maturity value of the note? a.The interest rate (6%) and the term (120 days) are needed to calculate the maturity value of the note. b.The face value of the note ($70,000) is needed to calculate the maturity value of the note. c.The face value ($70,000), interest rate (6%), and term (120 days) are needed to calculate the maturity value of the note. d.None of the information given is needed to calculate the maturity value of the note.
Answer:
c.The face value ($70,000), interest rate (6%), and term (120 days) are needed to calculate the maturity value of the note.
Explanation:
maturity value = face value + interest
interest = face value*interest rate*period
= $70,000*6%*120/360
= 1400
face value = 70,000
maturity value = 70,000 + 1400
= 71400
Therefore, face value and interest rates needed to calculate the maturity value of the rate.
Final answer:
To determine the maturity value of Action Co.'s note, the face value of $70,000, the interest rate of 6%, and the 120-day term are required. Ensuing the calculation, the interest amounts to $1,400, leading to a maturity value of $71,400.
Explanation:
To calculate the maturity value of a note, we need to take into account several components, including the face value, the interest rate, and the term of the note. In the case of Action Co.'s note payable to Scanlon Co., the face value is $70,000, the annual interest rate is 6%, and the note's term is 120 days. Using these variables, we can compute the interest of the note and add it to its face value to arrive at the maturity value.
The interest can be calculated as follows:
Interest = (Face Value imes Interest Rate imes Term) / (360-day year)
Interest = ($70,000 imes 6% imes 120) / 360
Interest = ($70,000 imes 0.06 imes 120) / 360
Interest = $1,400
Add the interest to the face value to get the maturity value:
Maturity Value = Face Value + Interest
Maturity Value = $70,000 + $1,400
Maturity Value = $71,400
Thus, we will need option c: The face value ($70,000), interest rate (6%), and term (120 days) are needed to calculate the maturity value of the note.
An energy company is seeking to build a pipeline across multiple Canadian provinces and U.S. states. Though __________________ managers identify the people interested in the company's activities and prioritize them by their impact on and interest in the pipeline project.
Answer:
The correct word for the blank space is: stakeholder mapping.
Explanation:
Stakeholder mapping is the act by which companies look for investors so they can finance their projects. The mapping allows entrepreneurs to verify if their project plan is good enough to attract capital and the process also helps to identify who of those investors are serious in making the plan become a reality.
Poorer developing countries which often produce and export primary commodities tend to face unfair _____________________ in relationship to rich countries that produce manufactured (capital) goods.
Answer:
Exchange value
Explanation:
Poorer countries are sometimes unfairly treated by the rich countries because the price they offer or the exchange value of primary goods compared to capital goods is usually unfair. The rich countries are capital incentive and they take advantage of it by unfairly treating poorer countries. The exchange value or economic value of primary commodities supplied by poorer countries is usually low and unfair.
Which of the following is a tool used by organizations to measure the benefits of their sustainability efforts? A. Transparency B. Green customer consumption C. Sustainability metrics D. Fair trade E. Locavorism
Answer:
b. Green customer consumption
Explanation:
Land was acquired in 2016 for a future building site at a cost of $40,300. The assessed valuation for tax purposes is $28,000, a qualified appraiser placed its value at $50,000, and a recent firm offer for the land was for a cash payment of $44,000. The land should be reported in the financial statements at:
a) $ 28,000.
b) $ 50,000.
c) $ 44,000.
d) $ 40,300.
Answer:
d) $ 40,300.
Explanation:
At the time of recording of the fixed assets, the fixed assets should be recorded at purchase cost or historical price
Since in the question, the land was acquired at $40,300 and the assessed valuation for tax purposes is also done for $28,000 plus there is a qualified appraiser for $50,000 and the cash payment is also made for $44,000
But at the time of reporting, the balance sheet would show at the acquired price i.e $40,300
Zen began a new consulting firm on January 5. The accounting equation showed the following balances after each of the company’s first five transactions. Analyze the accounting equation for each transaction and match the given transaction with its most likely description.
Assets = Liabilities + Equity
Transaction Cash + Accounts Receivable + Office Supplies + Office Furniture = Accounts Payable + Common Stock + Revenues
a. $ 40,000 + $ 0 + $ 0 + $ 0 = $ 0 + $ 40,000 + $ 0
b. 38,000 + 0 + 3,000 + 0 = 1,000 + 40,000 + 0
c. 30,000 + 0 + 3,000 + 8,000 = 1,000 + 40,000 + 0
d. 30,000 + 6,000 + 3,000 + 8,000 = 1,000 + 40,000 + 6,000
e. 31,000 + 6,000 + 3,000 + 8,000 = 1,000 + 40,000 + 7,000
Transaction Description
a. Started the business with the owner investing cash in the business in exchange for common stock
b. Purchased office supplies, paid in cash and on credit
c. Purchased office furniture by paying cash
d. Billed a customer for services rendered
e. Provided services for cash
Answer:
Explanation:
As we know that
Accounting equation comprise of
Total assets = Total liabilities + Shareholder equity
So, the description of each transaction is as follows:
a. Cash A/c Dr $40,000
To Common stock $40,000
(Being the invested cash in exchange for common stock is recorded)
Since both the above accounts i.e cash account and the common stock are increased by $40,000
b. Office supplies A/c Dr $3,000
To Cash A/c $2,000
To Accounts Payable A/c $1,000
(Being the office supplies are purchased for cash and on credit basis)
This transaction reduced the cash balance by $2,000 ($40,000 - $38,000) and the total office supplies is purchased for $3,000 out of which $2,000 is paid for cash and remaining $1,000 is on credit basis.
c. Office furniture A/c Dr $8000
To Cash A/c $8000
(Being the office furniture is purchase for cash is recorded)
In this transaction, the cash balance is $30,000 and the cash balance in previous balance is $38,000 so it get reduced by $8,000. Although the office furniture balance is also increased by $8,000
d. Accounts receivables A/c Dr $6,000
To Service revenue A/c $6,000
(Being the service rendered is recorded)
In this transaction, both the above accounts are increased by $6,000 each
e. Cash A/c Dr $1,000
To Service revenue A/c $1,000
(Being the service is provided for cash is recorded)
In this transaction, the cash balance is $31,000 and the cash balance in previous balance is $30,000 so it get increased by $1,000 Although the service revenue balance is also increased by $1,000
Transaction Cash + Accounts Receivable + Office Supplies + Office Furniture = Accounts Payable + Common Stock + Revenues
a. $ 40,000 + $ 0 + $ 0 + $ 0 = $ 0 + $ 40,000 + $ 0
a. Started the business with the owner investing cash in the business in exchange for common stock
Transaction cash is increase and common stock is increased.
b. 38,000 + 0 + 3,000 + 0 = 1,000 + 40,000 + 0
b. Purchased office supplies, paid in cash and on credit
Office supplies purchased by hybrid transaction, partially for cash and credit.
c. 30,000 + 0 + 3,000 + 8,000 = 1,000 + 40,000 + 0
c. Purchased office furniture by paying cash
Purchase furniture for office and payed cash
d. 30,000 + 6,000 + 3,000 + 8,000 = 1,000 + 40,000 + 6,000
d. Billed a customer for services rendered
Services delivered to customer on credit, Account receivables increased.
e. 31,000 + 6,000 + 3,000 + 8,000 = 1,000 + 40,000 + 7,000
e. Provided services for cash
Services rendered to customer for cash.
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Allowing firms to estimate rather than physically count inventory at interim (quarterly)periods is an example of a trade-off between___________.
a. verifiability and faithful representation.b. faithful representation and comparability.c. timeliness and verifiability.d. neutrality and consistency.
Answer:
The correct answer is (c)
Explanation:
The inventory management is an important task to avoid shortages against the demand. The physical count of inventory is hard and time taking which is why companies usually estimate the inventory rather than spending time to count it. This is the perfect example of a trade-off between timeliness and verifiability. It is a good trade-off because companies usually know the inventory levels.
A Treasury bill has a face value of 100K, 119 days to maturity, and is selling for $90 thousand. What is the effective annual yield on this bill? Enter answer in percents, accurate to two decimal places.
Answer:
Annual Yield = 34.08%
Explanation:
A treasury is a short-term financial instrument issued by a government with a maturity date of 365 days or less. It is issued for a value less than the its face value., therefore it is a discounted instrument.The face value is the amount that the investor will receive at the maturity of the bill.
To calculate the the effective annual yield of a bond; follow the steps below:
Step 1: Calculate the return earned for the investment period. This called the yield for the investment period. Note that the investment may be for less than 365 days depending on the number of days left to maturity when it was purchased.
(Face Value - Price)/Price × 100
= ((100-90)/90)× 100= 11.%
This helps to ascertained the return earned as a percentage of the amount invested.
Step 2: Calculate the annual effective rate. This is required to determine the equivalent return (yield) per annum should the investment be made for one year.
Annualized Yield= (Yield/Time period to maturity) × 365
= (11.11%/119) × 365
= 34.08%
Jeremy Fenloch borrowed some money from his friend and promised to repay him the amounts of $1,225, $1,350, $1,500, $1,600, and $1,600 over the next five years. If the friend normally discounts investments at 8 percent annually, how much did Jeremy borrow ?
Answer:
Explanation:
PV formula=Payment* PVF at 8%
So,
Year 1: PV=1225; PVF=0.925926; PV = 1225*0.925926=1134.26
Year 2: PV=1350; PVF=0.857339; PV = 1350*0.857339=1157.41
Year 3: PV=1500; PVF=0.793832; PV = 1500*0.857339=1190.75
Year 4: PV=1600; PVF=0.73503; PV = 1600*0.73503=1176.05
Year 5: PV=1600; PVF=0.680583; PV = 1600*0.0.680583=1088.93
If we add everything, it will amount into 5747.40 = amount of borrowing
Final answer:
Jeremy Fenloch borrowed a total of $5,821.76, calculated by finding the present value of each promised repayment over five years discounted at 8% annually.
Explanation:
Jeremy Fenloch borrowed money and promised to repay his friend $1,225, $1,350, $1,500, $1,600, and $1,600 over five years with a discount rate of 8%. To calculate the total amount Jeremy borrowed, we must calculate the present value of each payment he promised to make and then sum them up. The present value (PV) formula is PV = FV / (1 + r)^n, where FV is the future value of the payment, r is the discount rate, and n is the number of years until the payment will be made.
Year 1 payment present value: $1,225 / (1 + 0.08)^1 = $1,134.26Year 2 payment present value: $1,350 / (1 + 0.08)^2 = $1,165.29Year 3 payment present value: $1,500 / (1 + 0.08)^3 = $1,188.30Year 4 payment present value: $1,600 / (1 + 0.08)^4 = $1,211.92Year 5 payment present value: $1,600 / (1 + 0.08)^5 = $1,121.99Adding up these present values gives Jeremy's total borrowed amount: $1,134.26 + $1,165.29 + $1,188.30 + $1,211.92 + $1,121.99 = $5,821.76.
A tax refund anticipation loan is a great way to get your refund money now instead of waiting several weeks for the government to send you your check.
True or False?
Answer:
The statement is: False.
Explanation:
Tax Refund Anticipation Loans (RAL) is a loan given by third-party companies dedicated to file tax returns based on the expected tax refund they can receive. Individuals typically receive their tax return refund within some weeks after filing their tax returns. People with immediate money needs can see this as a solution to that problem but may imply big interest payments afterward.
Total production costs for Gallop, Inc., are budgeted at $230,000 for 50,000 units of budgeted output and at $280,000 for 60,000 units of budgeted output. Because of the need for additional facilities, budgeted fixed costs for 60,000 units are 25% more than budgeted fixed costs for 50,000 units. How much is Gallop's budgeted variable cost per unit of output?
Answer:
$3
Explanation:
We have to use linear function to determine the variable cost per unit.
Let, x = fixed costs, y = variable cost per unit
According to the question,
x + 50,000 y = $230,000 ........ (i)
As the fixed cost increases 25% due to additional facilities, the new equation will be -
(x*25%) + x + 60,000 y = $280,000
or, 0.25x + x + 60,000 y = $280,000
or, 1.25 x + 60,000 y = $280,000 ......... (ii)
Multiplying the equation (i) by 1.25 and the equation (ii) by 1, we can get,
1.25x + 62,500 y = $287,500 ...... (iii)
1.25x + 60,000 y = $280,000 ......(iv)
Subtracting equation (iv) from (iii), we can get,
2,500 y = $7,500
or, y = $7,500 ÷ 2,500
or, y = $3
Therefore, the budgeted variable cost per unit = $3
To calculate Gallop's budgeted variable cost per unit, you have to solve simultaneous equations based on the given total costs for different production levels, taking into consideration that fixed costs are higher by 25% for the larger production batch.
Explanation:To find Gallop's budgeted variable cost per unit of output, we must first understand that total costs consist of fixed costs and variable costs. As per the information given, the budgeted fixed costs for 60,000 units are 25% more than those for 50,000 units. Therefore, if we denote the budgeted fixed costs for 50,000 units as F, then the budgeted fixed costs for 60,000 units are 1.25F.
Using this information and the total budgeted costs given for both levels of production, we can set up two equations:
For 50,000 units: Total costs = Fixed costs (F) + Variable costs (50,000 units * Variable cost per unit (V)) = $230,000For 60,000 units: Total costs = Fixed costs (1.25F) + Variable costs (60,000 units * V) = $280,000Now, we can solve these two simultaneous equations to find V, the variable cost per unit. By doing some algebra (subtracting the first equation from the second) the increase in total cost ($50,000 = $280,000 - $230,000) is mainly due to the additional 10,000 units and the 25% increase in fixed costs. Once we find the increased fixed cost, we can subtract it from the $50,000 to find the total variable cost for the additional 10,000 units, and dividing this number by 10,000 gives us the variable cost per unit.
Prepare an amortization schedule for a five-year loan of $71,500. The interest rate is 7 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.)
Answer:
Explanation:
Let's recall the formula that will be used for calculations
The annual payment on the loan=Present value of a loan/PVIFA
r=7%; n=5
Annual payment on the loan=71500/4.100197=17438.19
OR we can use the financial calculator and input the following data:
PV = 71500; r=7%; n=5; PMT=?
PMT=17438.19
Amortization schedule:
YEAR Beg. balance Total PMT Interest PMT Principal PMT End. Bal.
1 71500 17438.19 5005 12433.19 59066.81
2 59066.81 17438.19 4134.68 13303.51 45763.3
3 45763.30 17438.19 3203.43 14234.76 31528.54
4 31528.54 17438.19 2207 15231.19 16297.35
5 16297.35 17438.19 1140.81 16297.38 0
*5005 = 71500 ×0.07
12433.19=17438.19-5005 and so on...
Final answer:
To prepare an amortization schedule for a five-year loan of $71,500 at a 7% annual interest rate, you must calculate the annual payment using the present value of annuity formula, then distribute each payment into principal and interest, updating the loan balance each year.
Explanation:
The amortization schedule for a five-year loan of $71,500 with a 7 percent annual interest rate and equal annual payments requires the calculation of the annual payment amount using the formula for an annuity. Once the annual payment is calculated, the schedule will track the decreasing balance over time as each payment is made. To find the annual payment, we would use the present value of annuity formula:
PV = Pmt × [(1 - (1 + r)^{-n}) / r]
Where PV is the present value of the loan ($71,500), Pmt is the annual payment, r is the interest rate per period (7% or 0.07), and n is the number of periods (5 years).
Rearranging the formula to solve for Pmt gives us:
Pmt = PV / [(1 - (1 + r)^{-n}) / r]
By plugging the values into the formula, we can calculate the annual payment. After we know the annual payment, we will use it to create the amortization schedule and distribute the payment into interest and principal components for each year, updating the balance accordingly.
Please note that the creation of the complete amortization schedule involves several steps, including repetitive calculations to update the balance and to calculate the interest for each year. The interest is always calculated on the remaining balance of the loan at the start of the year. This explanation is a simplification; the actual amortization schedule would need to be prepared with precise calculations.
Rodney Halpern works in the marketing department of a major manufacturing firm. Much of his job involves managing the movement of materials, parts, and information from suppliers to his firm. He tries to coordinate these flows with his firm's factory processes and assists with the efficient movement of finished goods to final consumers. These activities suggest that Rodney's job responsibilities focus on: A)wholesaling. B)multilevel marketing. C)assembly processing. D)supply chain management.
Answer:
Letter D is correct. Supply chain management.
Explanation:
It can be said that Rodney's professional responsibilities focus on supply chain management. The entire logistical process of a product or service, ranging from its manufacture to its delivery to the final consumer can be defined as a supply chain.
Rodney's job is to ensure that the flow of all stages that make up the production process, such as raw materials, work in progress, finished products, and information are managed correctly so that there is an effective supply chain, which ensure delivery of products and services to the right place at the right time.
Adjustments for ________ would not be included in the required reconciliation of the Governmental Fund Balance Sheet to the governmental activities Statement of Net Position.
Answer:
Adjustments for enterprise fund-basis statements from their original modified accrual basis would not be included in the required reconciliation of the Governmental Fund Balance Sheet to the governmental activities Statement of Net Position.
Inventories Raw materials $ 43,000 $ 52,000
Work in process 10,200 21,300
Finished goods 63,000 35,600
Activities and information for May
Raw materials purchases (paid with cash) 210,000
Factory payroll (paid with cash) 345,000
Factory overhead Indirect materials 15,000
Indirect labor 80,000
Other overhead costs 120,000
Sales (received in cash) 1,400,000
Predetermined overhead rate based on direct labor cost 70 % Determine whether there is over or underapplied overhead. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
Answer:
Explanation:
Overhead:
Indirect materials 15,000.00
Indirect labor 80,000.00
Other overhead costs 120,000.00
If we sum up everything = 215,000.00
Overhead applied 185,500.00
Underapplied OH 215000-185500=29,500.00
Over the years, Zebra Productions has been slow making payments to its bank. Now it is in need of financing. Based on past experience, the interest rate Zebra will pay is the____________.
A) interest rate determined by the SBA.B) finance rate determined by the Department of Commerce.C) prime rate.D) prime rate plus 4 percent.E) prime rate minus 2 percentage points.
Answer:
D) prime rate plus 4 percent
Explanation:
Zebra Productions will now be qualified as a sub-prime customer as it has been slow making payments to its bank. This has made its credit rating and quality lower. The lower credit rated customers are charged sub-prime lending rates which is charging interest rates higher than the prime lending rate ( lower interest rate for good credit rating customers). This is due to the fact that the bank is taking higher risk on the borrower's account and thereby should get higher return for taking higher risk.
Thus, option no. D) prime rate plus 4 percent would be charged to Zebra Productions.
Nikola Motors has a quick ratio of 2.00; $38,250 in cash; $21,250 in accounts receivable; some inventory; total current assets of $85,000; and total current liabilities of $29,750. In its most recent annual report, Nikola reported annual sales of $100,000 and a cost of goods sold equal to 65% of annual sales.
How many times is Nikola Motors selling and replacing its inventory?
Answe2.55 times
Explanation:
Current assets represent the resources of short-term nature which a business expects to convert back to cash between a year. They include inventory, receivables.
Inventory turnover is the average number of days it takes a Nikola Motors to sell its its stock and replenish it. This can be determined by either working it out in number of times the stock is sold and replenished or the length of days its takes to do same.
The formula for both are given below:
Inventory turnover( no of times) = Cost of goods sold / average inventory
= x number of times
Inventory days = (Average inventory/ Cost of goods sold) *365 days
= number of days
Note: The inventory figure was not given in the question, but we can work it out;
Current assets= cash + inventory + receivables
85,000 = 38,250 + 21,250 + y Lets "y "demote inventory
y = 85,000 - 38250 - 21, 250
y= 25,500
Also we need to work out cost of sold;
Cost of goods sold = 65% × 100,000
= 65,000
Now we can work out the inventory turnover;
Inventory turnover = 65,000/25,500
= 2.55 times
Nikola Motors is seling and replacing its inventory 2.55 times
The concept required for the question is called 'inventory turnover,' which refers to how many times a company sells and replaces inventory within a specified period. However, without the company's inventory value, the inventory turnover can't be determined accurately.
Explanation:The question you asked involves a concept in business known as
inventory turnover
which indicates how many times a company is selling and replacing its inventory during a specific period.
However, with the information you provided, we cannot find the inventory turnover because we don't have the inventory value. Generally, the inventory turnover ratio is calculated by dividing the Cost of Goods Sold (COGS) by the average inventory during a period. Assuming an inventory value, we could have calculated this ratio.
For instance, if the company had an inventory worth $40,000, its inventory turnover would be (0.65 * $100,000) / $40,000 = 1.625 times. This would indicate that Nikola Motors sells and replaces its inventory approximately 1.625 times annually.
Without knowing the inventory value for Nikola Motors, I am sorry to say that it is impossible to accurately determine the inventory turnover.
Learn more about Inventory Turnover here:https://brainly.com/question/32676263
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