Answer:
$94,360
Explanation:
Calculation to determine what The equivalent units of production for the period for conversion costs were
Equivalent units of production=[$84,300+ ($50,300 * 20% ]
Equivalent units of production=$84,300+$10,060
Equivalent units of production=$94,360
Therefore The equivalent units of production for the period for conversion costs were $94,360
Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 25 billion cases of cola were sold every year at a price of $5 per case. After the tax, 18 billion cases of cola are sold every year; consumers pay $6 per case (including the tax), and producers receive $3 per case.
The amount of the tax on a case of cola is ___________ $ per case. Of this amount, the burden that falls on consumers is __________$ per case, and the burden that falls on producers is ____________$ per case.
The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
a. True
b. False
Answer:
$1
$2
false
Explanation:
A tax is a compulsory sum levied on goods and services by the government. Taxes increases the price of goods
Tax = amount consumers pay - amount producers receive
$6 - $3 = $3
Tax paid by consumers = Price after tax - tax before tax
$6 - $5 = $1
Amount received by producers = tax - tax paid by consumers
$3 - $1 = $2
What is three ways eBay helps support small businesses? Full sentences please :)
Answer:
1. Gets you customers fast
2. There is a 95% chance you will make a profit
3. eBay is a big platform with multiple users
Walnut has forecast sales for the next three months as follows: July 4,900 units, August 6,900 units, September 8,000 units. Walnut's policy is to have an ending inventory of 50% of the next month's sales needs on hand. July 1 inventory is projected to be 2,200 units. Selling and administrative costs are budgeted to be $20,000 per month plus $9 per unit sold. What are budgeted selling and administrative expenses for July
Answer:
the budgeted selling and administrative expenses for July is $64,100
Explanation:
The computation of the budgeted selling and administrative expenses for July is shown below:
= Budgeted selling & admin cost + (per unit sold × July units)
= $20,000 + ($9 × 4,900 units)
= $20,000 + $44,100
= $64,100
hence, the budgeted selling and administrative expenses for July is $64,100
We simply applied the above formula
Earnings Per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Monarch Resources Inc. for December 31 of the current year: Common stock, $125 par value (no change during the year) $12,500,000 Preferred $6 stock, $90 par (no change during the year) 2,250,000 The net income was $1,300,000, and the declared dividends on the common stock were $460,000 for the current year. The market price of the common stock is $92 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. Round to one decimal place except earnings per share and dividends per share, which should be rounded to the nearest cent. a. Earnings per share $fill in the blank 1 b. Price-earnings ratio fill in the blank 2 c. Dividends per share $fill in the blank 3 d. Dividend yield fill in the blank 4 %
Answer:
Monarch Resources Inc.
a. Earnings per share:
= $ 11.50
b. Price-earnings ratio:
= 8x
c. Dividends per share:
= $4.60 per share
d. Dividend yield:
= 5%
Explanation:
a) Data and Calculations:
Common stock, $125 par value = $12,500,000
Number of common stock shares = 100,000 ($12,500,000/$125)
$6 Preferred stock, $90 par value = $2,250,000
Number of preferred stock shares = 25,000 ($2,250,000/$90)
Net income = $1,300,000
Dividends on the Preferred stock = $150,000 ($2,250,000/$90 * $6)
Net income after preferred dividend = $1,150,000 ($1,300,000-$150,000)
Dividends on the Common stock = $460,000
Common stock market price = $92 per share
a. Earnings per share
= Net income after preferred dividend/number of shares
= $1,150,000/100,000
= $ 11.50
b. Price-earnings ratio:
= Market price/EPS
= $92/$11.50
= 8x
c. Dividends per share:
= Common stock dividends/number of common stock shares
= $460,000/100,000
= $4.60 per share
d. Dividend yield:
= Market price/Dividend per share
= $4.60/$92 * 100
= 5%
ando Company incurs a $10.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $5.00 per unit and sell it for $11.90 per unit. If it does so, unit sales would remain unchanged and $5.00 of the $10.00 per unit costs of Product A would be eliminated. 1. Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase it for resale
Answer and Explanation:
The preparation of the Incremental cost analysis is presented below:
Particulars Product A Purchase
Sales $13.50 $11.90
less: cost
Avoidable cost $5
Unavoidable cost $5 $5
Purchase cost $5
Net income $3.50 $1.90
Since the net income is higher in the manfufacture so the company should continue with manfuacture the product A
Tina, Jack, and Jade were just about to deliver a presentation together. Tina said, "Remember to emphasize our need for a larger budget." Jack replied, "No, I think we need to emphasize our need for another member on the team." Which principle for delivering effective team presentations did the team most violated in this instance
Answer:
A- Stand together and present a united front.
Explanation:
It is correct to say that the team violated the principle of being together and presenting a united front, because in an effective presentation of a team, there must be cohesion and consensus among team members about the team's goals and needs, which was violated when Tina reported a different need than Jack considered the essential need to be emphasized during the presentation.
It is necessary that during the presentation the team is integrated in its objectives and proposals, so that there is greater reliability of what is being discussed and greater acceptability. It is essential for the team to reach consensus and be cohesive at the time of the presentation.
Effective team presentation is achieved by demonstrating a strong and effective team performance. The principle violated in this scenario is stand together and present a united front.
From the scenario described, we could infer that the team disagreed on which what should be the main point of focus. This highlights that the team isn't totally sharing the same view or purpose for the presentation. Hence, inferring dichotomy.Hence, the team violates the principle of "stand together and present a united front. "
Learn more :https://brainly.com/question/22716761
Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs PoolCost DriverOverhead Cost Budgeted Level for Cost Driver Quality controlNumber of inspections$77,000 1,100 Machine operationMachine hours 153,000 1,500 Materials handlingNumber of batches 1,200 30 Miscellaneous overhead costDirect labor hours 57,000 5,700 Sheen Co. has an order for 1,000 laser printers that has the following production requirements: Number of inspections295 Machine hours240 Number of batches6 Direct labor hours770 Using activity-based costing, applied machine operation overhead for the 1,000 laser printers order is: Multiple Choice
Answer:
Total allocated costs= $53,070
Explanation:
First, we need to calculate the allocation rates using the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Quality control= 77,000 / 1,100 = $70 per inspection
Machine operation= 153,000 / 1,500 = $102 per machine hour
Materials handling= 1,200 / 30 = $40 per batch
Miscellaneous overhead cost= 57,000 / 5,700= $10 per labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Quality control= 70*295= 20,650
Machine operation= 102*240= 24,480
Materials handling= 40*6= 240
Miscellaneous overhead cost= 10*770= 7,700
Total allocated costs= $53,070
) Prestwich Company has budgeted production for next year as follows: First Quarter Second Quarter Third Quarter Fourth Quarter Production in units 60,000 80,000 90,000 70,000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. The cost of material A is $3 per pound. Prestwich pays for 60% of the purchases in the month of purchase and 40% in the following month. a. What would be the budgeted purchases of material A in pounds for the second quarter
Answer:
165,000 pounds ($495,000)
Explanation:
To determine the budgeted purchases of material A in pounds for the second quarter, prepare a Materials Purchases Budget as follows :
Materials Purchases Budget
Pounds
Materials Required for Production (80,000 x 2) 160,000
Add Closing Materials Inventory (90,000 x 2 x 25%) 45,000
Total Materials 205,000
Less Opening Materials Inventory (80,000 x 2 x 25%) (40,000)
Material Purchases 165,000
Cost per unit $3
Budgeted Materials Cost $495,000
Explain the significance of capital structure.
Gartner Manufacturing Inc. purchases a component from a Malaysian supplier. The demand for that component is exactly 70 units each day. The company is open for business 250 days each year. When the company reorders the product, the lead time from the supplier is exactly 10 days. The product costs $14.00. The company determined that its inventory carrying cost is 20%. The company's order cost is $30.00. How many orders per year will be made, when using the EOQ
Answer:
Number of orders= 28.59 = 29 orders
Explanation:
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
D= 70*250= 17,500
S= $30
H= 14*0.2= $2.8
Now, using the formula:
EOQ= √[(2*17,500*30) / 2.8]
EOQ= √375,000
EOQ= 612.37 = 612
Finally, the number of orders:
Number of orders= total demand / EOQ
Number of orders= 17,500 / 612
Number of orders= 28.59 = 29 orders
Paola and Isidora are married; file a joint tax return; report modified AGI of $148,000; and have one dependent child, Dante. The couple paid $12,000 of tuition and $10,000 for room and board for Dante (a freshman). Dante is a full-time student and claimed as a dependent by Paola and Isidora. Determine the amount of the American Opportunity credit for 2020.
Answer:
$2,500
Explanation:
The computation of the amount is shown below;
In the case when the modified AGI upto $180,000 so it would be credit by $2,500 per eligible student
As we can see that in the given situation there is modified AGI that reported $148,000 so here the amount of the American Opportunity credit for 2020 is $2,500 also we assume that the eligibility condition would be satisfied
A student wants to have $30,000 at graduation 4 years from now to buy a new car. His grandfather gave him $10,000 as a high school graduation present. How much must the student save each year if he deposits the $10,000 today and can earn 12% on both the $10,000 and his earnings in a mutual fund his grandfather recommends
Answer:
Annual deposit= $2,984.69
Explanation:
First, we need to calculate the Future Value of the lumpsum investment using the following formula:
FV= PV*(1+i)^n
FV= 10,000*(1.12^4)
FV= $15,735.19
Now, the annual deposit to cover the difference:
Difference= 30,000 - 15,735.19= 14,264.81
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (14,264.81*0.12) / [(1.12^4) - 1]
A= $2,984.69
Billions of Dollars
Investment 80
Capital consumption allowance (depreciation) 45
Exports 40
Imports 15
Government purchases 160
Consumption 375
Indirect business taxes 35
Social insurance taxes 5
Corporate profit taxes 4
Undistributed corporate profits 6
Transfer payments 50
Personal taxes 110
Compensation of employees 455
Corporate profits 90
Rental income (of persons) 5
Net interest 25
Proprietors' income 25
Income earned from the rest of the world 80
Income earned by the rest of the world 40
The five components of GDP from the table that together sum to national income are ___________, ____________, ___________, and ______________
Answer:
Note: Some words are missing and are attached as picture below
The 5 components of GDP from the table that together sum to national income are:
a. Compensation of employees
b. Corporate profits
c. Net interest
d. Proprietors' income
e. Rental income
Disposable Income = Personal Income - Personal Taxes
Personal Income = Disposable Income + Personal Taxes
Personal Income = 525 + 110
Personal Income = 635
National income = Personal Income + Social Insurance Tax + Corporate Profit Taxes + Undistributed Corporate Profits - Transfer Payments
National income = 635 + 5 + 4 + 6 - 50
National income = 600
Why is it necessary to track the progress of a plan?
O A. To create a progress chart for employees to help them calculate
their pay
O B. To ensure the plan is based on faulty assumptions
O C. To identify potential problems that could impact the schedule
O D. To provide information for manager's reports
Answer:
to identify potential problems that could impact the schedule
Explanation:
a p e x
It is important for an organization to track the process of a plan in order to identify potential problems that could impact the schedule. Hence, option C holds true.
What is planning?Planning is the most basic function of management of a business organization. It is a continuous process. Planning involves setting up the goals and objectives and the actions needed to achieve them.
Furthermore, because planning is a continuous process, it helps in identification of difficulties that may create obstacles in achievement of organizational goals.
Hence, option C holds true regarding planning.
Learn more about planning here:
https://brainly.com/question/22590420
#SPJ2
On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%.
Required:
Prepare the journal entry to record the transaction of December 31, 2015
Answer:
Date Account titles and Explanation Debit ($) Credit ($)
Notes receivable 200,000
Discount on notes receivable 34,711
Sales revenue 165,289
(To record notes receivable)
Workings:
The PV of $200,000 due in 2 years at 10% = $200,000*0.82645 = $165,290
Marcy wanted to buy Lucy's land and use it to breed small pigs to be kept as pets. Marcy told Lucy that having water on the property was very important. Lucy assured her that a spring ran through one corner of the property. Therefore, Marcy agreed to buy the farm. Although she did not ask Lucy anything about it, Marcy, who loved pigs, assumed that the neighbors would be pleased with the pigs being in the area. In a separate contract, Lucy also agreed to sell Marcy a used truck for $5,000. After the contract for the land sale was entered into, it was discovered that actually the spring did not run through the corner of Lucy's property. The area in which the spring ran actually belonged to a neighbor. Additionally, when Lucy brought Marcy the used truck, Marcy said, "That's not the truck!" It was discovered that Lucy, who had two trucks, thought that Marcy had bought the older truck when Marcy thought she had purchased the newer truck. Marcy was also surprised when she received a petition signed by all surrounding landowners objecting to the presence of the pigs and threatening to sue Marcy for nuisance. Which of the following would be the result if Marcy attempts to rescind the contract and recover damages only on the basis of the neighbors' objection to a pig farm?
1) Marcy may rescind the contract and recover damages because Lucy made an implied misrepresentation.
2) Marcy may rescind the contract, but she may not recover damages because the situation involved a mutual mistake.
3) Marcy may recover damages, but she may not rescind the contract because Lucy made an implied misrepresentation.
4) Marcy may not rescind the contract or recover damages because Marcy made a unilateral mistake.
5) Marcy may rescind the contract, but she may not recover damages because Marcy made a unilateral mistake.
Answer:
5. Marcy may rescind the contract , but she may not recover damages because the situation involved unilateral mistake.
Explanation:
In the given situation marcy could be able to rescind the contract but she could not claim for the damages as the given situation represent the unilateral mistake that means one party mistake. If the mistake is of both the parties than she is able to recover the damages
But in this case this would cant be happen
hence, the last option is correct
Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.36. The average fixed expense per month is $1,300. Use the formula method to determine how many cups of coffee would have to be sold to attain target profits of $3,000 per month.
Answer:
See below
Explanation:
The formula method is denoted by
Unit sales to attain the targeted profit =( Target profit + Fixed expenses) / Contribution margin per unit
Target profit = $3,000 per month
Fixed expenses = $1,300
Contribution margin per unit = $1.49 - $0.36 = $1.13
Therefore, unit sales to attain targeted profit = ($3,000 + $1,300) / $1.13 = 3,805.31 units
It means that 3,805.31 cup of coffee would have to be sold to attain target profit of $3,000 per month.
North Inc. is a calendar-year C corporation, accrual-basis taxpayer. At the end of year 1, North accrued and deducted the following bonuses for certain employees for financial accounting purposes. $7,500 for Lisa Tanaka, a 30 percent shareholder. $10,000 for Jared Zabaski, a 35 percent shareholder. $12,500 for Helen Talanian, a 20 percent shareholder. $5,000 for Steve Nielson, a 0 percent shareholder. Unless stated otherwise, assume these shareholders are unrelated. How much of the accrued bonuses can North Inc. deduct in year 1 under the following alternative scenarios? (Leave no answer blank. Enter zero if applicable. Input all amounts as positive values.) a. North paid the bonuses to the employees on March 1 of year 2.
Answer:
North can deduct $35,000 for the accrued bonuses ($7,500 + $10,000 + $12,500 + $5,000)
Explanation:
The corporation has until the middle of March to deduct any bonuses handed out that correspond to past performance. After this 2¹/₂ month period is over, the bonuses must be deducted during the next accounting period.
The aggregate supply curve Multiple Choice is explained by the interest rate, real-balances, and foreign purchases effects. gets steeper as the economy moves from the top of the curve to the bottom of the curve. shows the various amounts of real output that businesses will produce at each price level. is downsloping because real purchasing power increases as the price level falls.
Answer:
. shows the various amounts of real output that businesses will produce at each price level
Explanation:
Aggregate supply can be regarded as " domestic final supply" in domain of economics, it is the overall supply of services/ goods that is been produced at a particular overall price within an economy at a given period. It should be noted that aggregate supply shows the various amounts of real output that businesses will produce at each price level
Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, accounts receivable totaled $625,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $32,000 at the beginning of 2021 and $21,000 in receivables were written off during the year as uncollectible. Also, $1,200 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 10% to accounts receivable at the end of the year.
Required:
Prepare journal entries to record the write-off of receivables, the collection of Sl,200 for previously written off receivables, and the year-end adjusting entry for bad debt expense.
Answer and Explanation:
The journal entries are shown below:
Allowance for uncollectible accounts $21,000
To Account receivable $21,000
(being written off is recorded)
Account receivable Dr $1,200
To Allowance for uncollectible accounts $1,200
(Being written back of receivable is recorded)
Cash Dr $1,200
To Account receivable $1,200
(being cash received is recorded)
Bad debt expense $50,300 ($32,000 - $21,000 + $1,200 - $625,000 × 0.10)
To Allowance for uncollectible accounts $50,300
(being the bad debt expense is recorded)
On January 1, Year 1, Canseco Plumbing Fixtures purchased equipment for $52,000. Residual value at the end of an estimated four-year service life is expected to be $4,000. The company uses the straight-line method. For how much would each item below be reported at the end of Year 2?
Answer:
Reported for Year 2 will be :
Depreciation Expense = $12,000
Accumulated Depreciation = $24,000
Book Value = $28,000
Explanation:
Straight line method charges a fixed amount of depreciation for the period that the asset is in use in the business.
Depreciation Charge = (Cost - Salvage Value) ÷ Estimated Useful Life
therefore,
Depreciation Charge = ($52,000 - $4,000) ÷ 4
= $12,000
we know that,
Accumulated depreciation = Sum of all depreciation to date
and
Book Value is the Costs less Accumulated depreciation
thus,
Balances for the Next 2 years will be as follows
Year 1
Depreciation Expense = $12,000
Accumulated Depreciation = $12,000
Book Value = $40,000
Year 2
Depreciation Expense = $12,000
Accumulated Depreciation = $24,000
Book Value = $28,000
You are a seller of farm equipment. Sidney Lanier puts in an order for a new combine harvester, which costs $425,000. Under the terms of the agreement, Mr. Lanier has to forward you a certified check for 25% of the purchase price within 15 days of the signing of the purchase agreement. Meanwhile you are preparing the combine harvester for shipment to Sidney Lanier's farm.
On the 15th day, you do not receive a check from Mr. Lanier. You do not receive a check on the 16th, 17th, or 18th day either. Meanwhile, another farmer has come into your office to ask about buying the combine harvester.
What can you do in this situation?
A. Since you and Mr. Lanier have a contract, you have to wait until he sends you the check before you can do anything.
B. Mr. Lanier had a duty to send you a check by the 15th. He's breached that duty under the contract, and it appears to be a material breach, so you have the right to rescind the contract.
Answer: B. Mr. Lanier had a duty to send you a check by the 15th. He's breached that duty under the contract, and it appears to be a material breach, so you have the right to rescind the contract.
Explanation:
Material breach occurs when a particular party fails to fulfill his or her part in a contract and this can lead to the other party rescinding the contract or sue for a breach of contract.
Since under the terms of the agreement, Mr. Lanier has to forward a certified check for 25% of the purchase price within 15 days of the signing of the purchase agreement but he didn't send the check, this means that the there's a breach in the contract, and the contract can be rescinded.
Consider the following information:
Portfolio Expected Return Beta
Risk-free 11% 0
Market 12.2 1.0
A 11.0 0.9
A. Calculate the expected return of portfolio A with a beta of 0.9.
B. What is the alpha of portfolio A.
C. If the simple CAPM is valid, is the above situation possible?
The Buck Store is considering a project that will require additional inventory of $216,000 and will increase accounts payable by $181,000. Accounts receivable are currently $525,000 and are expected to increase by 9 percent if this project is accepted. What is the project's initial cash flow for net working capital
Answer:
$607,250 outflow
Explanation:
Net Working Capital is the amount of money needed to maintain operations on a day to day basis.
Net Working Capital = Current Assets - Current Liabilities
where,
Current Assets are calculated as :
Inventory $216,000
Accounts Receivable ($525,000 x 1.09) $575,250
Total $788,250
and
Current Liabilities = $181,000
therefore,
Net Working Capital = $788,250 - $181,000 = $607,250
Conclusion
The project's initial cash flow for net working capital is $607,250 outflow.
Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for
local, state, or federal governments.
nonprofit organizations that use unions.
companies that use self-employed contractors.
private companies and businesses.
HELP PLEASE
Answer:
A.) local, state, or federal governments.
Explanation:
Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for local, state, or federal governments. Thus, option A is correct.
What is Transportation?Transportation, the development of merchandise and people from one spot to another, and the different means by which such development is achieved.
Laborers in Transportation and Logistics vocations who have confidence in the advantages of an association are probably going to work for it. not-for-profit associations that utilize associations.
Laborers in operations vocations who put stock in the advantages of an association are probably going to work for neighborhood, state, or central legislatures.
Union have better work well-being securities and preferred paid leave over non-association laborers, and are safer practicing their freedoms in the workplace.
Therefore, option A is correct.
Learn more about Transportation, here:
https://brainly.com/question/29851765
#SPJ6
LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $290 per month. rev: 09_23_2020_QC_CS-230013a. If LaMont receives one pass (worth $290) each month, how much of this benefit must he include in his gross income each year
Answer:
The IRS sets the limit on transportation benefits provided by an employer, for 2021, this limit is $270 per month, or $3,240 per year.
The total benefit received by LaMont should = 12 x $290 = $3,480
This means that he must include $3,480 - $3,240 = $240 as part of his annual gross income.
Decision Case F:2-1 Your friend, Dean McChesney, requested that you advise him on the effects that certain transactions will have on his business, A-Plus Travel Planners. Time is short, so you cannot journalize the transactions. Instead, you must analyze the transactions without a journal. McChesney will continue the business only if he can expect to earn a monthly net income of $6,000. The business completed the following transactions during June:
A. McChesney deposited $10,000 cash in a business bank account to start the compan The company issued common stock to McChesney.
B. Paid $300 cash for office supplies.
C. Incurred advertising expense on account, $700.
D. Paid the following cash expenses: administrative assistant's salary, $1,400: office tent, $1,000.
E. Earned service revenue on account, $8,800.
F. Collected cash from customers on account, $1,200.
Answer:
A-Plus Travel Planners
Analysis of transactions:
A. Cash $10,000 (Increase Assets) Common Stock $10,000 (Increase Equity)
B. Office Supplies $300 (Decrease Profit) Cash $300 (Decrease Assets)
C. Advertising expense $700 (Decrease Profit) Cash $700 (Decrease Assets)
D. Salary expense $1,400 (Decrease Profit) Rent Expense $1,000 (Decrease Profit) Cash $2,400 (Decrease Assets)
E. Accounts Receivable $8,800 (Increase Assets) Service Revenue $8,800 (Increase Profit)
F. Cash $1,200 (Increase Assets) Accounts Receivable $1,200 (Decrease Assets)
Explanation:
a) Data and Calculations:
Expected net income = $6,000
Service Revenue $8,800
Expenses:
Office Supplies $300
Advertising 700
Admin. Salary 1,400
Rent 1,000 $3,400
Net income $5,400
Expected profit 6,000
Required improvement $600
b) To achieve profit target of $6,000 under the current revenue profile, A-Plus Travel Planners must decrease expenses by at least $600. Alternatively, it can increase its revenue by the same amount, while maintaining its costs at current level.
The difference between accrual-basis accounting and cash-basis accounting is timing. Under accrual-basis accounting, we record revenues when we provide goods and services to customers, and we record expenses when costs are used in company operations.
a. True
b. False
Answer:
A. True
Explanation:
The main difference between accrual and cash basis accounting lies in the timing of when revenue and expenses are recognized. The cash method is a more immediate recognition of revenue and expenses, while the accrual method focuses on anticipated revenue and expenses.
Superior Developers sells lots for residential development. When lots are sold, Superior recognizes income for financial reporting purposes in the year of the sale. For some lots, Superior recognizes income for tax purposes when the cash is collected. In 2020, Superior sold lots for $40 million for which no cash was collected at the time of the sale. This cash will be collected equally over 2021 and 2022. The enacted tax rate was 40% at the time of the sale. In 2021, a new tax law was enacted, revising the tax rate from 40% to 25% beginning in 2022. Calculate the total amount by which Superior should change its deferred tax liability in 2021. (Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)
Answer:
$11 million
Explanation:
Calculation for the total amount by which Superior should change its deferred tax liability in 2021
Deferred tax liability 12/31/2020 $16.0
($40 future taxable amt. × 40%)
Less Deferred tax liability 12/31/2021 (5.0)
($40/2 equally future taxable amt. × 25%)
Reduction needed to achieve desired balance $11
($16.00-$5.00)
Therefore the total amount by which Superior should change its deferred tax liability in 2021 is by reducing it to $11 million:
Ron was vacationing in France, when his camera was stolen. As he walked into a camera store, Ron noticed that camera prices were in euros. If Ron was willing to pay $ for a new digital camera and the exchange rate is $ per euro, how much will Ron be paying in euros? Ron will be paying nothing euros for the camera. (Instructions: Enter your response by rounding two places after the decimal.)
Answer:
130.43 euros
Explanation:
Since Ron willing to Pay is $150
Now we have to convert $150 in euros
As we know that
exchange rate × willing to pay in euro = Willing to pay in Dollar
i.e.
willing to pay in euro = Willing to pay in Dollar ÷ Exchange rate
= 150 ÷ 1.15
= 130.43 euros
Hence, the ron be paying in euros is 130.43
The same would be relevant
