Answer:
Advantages of non-verbal communication are a compliment, substitute, attraction, express, helps physically challenged
Shown below is a segmented income statement for Mullett Marina’s three main boating service lines:
Winter Storage Boat Fuel & Boat Total
Concessions Maintenance
Sales revenue $4,000,000 $1,000,000 $5,000,000 $10,000,000
Less: Variable expenses 2,000,000 200,000 4900,000 7,100,000
Contribution margin $2,000,000 $800,000 $100,000 $2,900,000
Less direct fixed expenses:
Garage/warehouse rent 700,000 55,000 350,000 1,105,000
Supervision 50,000 70,000 150,000 270,000
Equipment depreciation 250,000 75,000 100,000 425,000
Segment margin $1,000,000 $600,000 $(500,000) $1,100,000
Relevant fixed costs associated with this line include 60% of Boat Maintenance’s garage/warehouse rent and 50% of Boat Maintenance’s supervision salaries. In addition, assume that dropping the Boat Maintenance service line would reduce sales of the Winter Storage line by 20% and sales of the Boat Fuel & Concessions line by 10%. All other information remains the same.
Required:
1. If the Boat Maintenance service line is dropped, what is the contribution margin for the Boat Fuel & Concessions line? For the Winter Storage line?
2. Which alternative (keep or drop the Boat Maintenance line) is now more cost effective and by how much?
Answer:
1. We have:
Contribution margin for the Boat Fuel & Concessions line = $700,000
Contribution margin for the Winter Storage line = $1,200,000
2. Keeping Boat Maintenance service line by $630,000.
Explanation:
Note that after dropping Boat Maintenance service line, its Sales revenue and Variable expenses will be eliminated while all the fixed costs will be retained. This is because, generally in Management Accounting, the fact that a a fixed cost is a direct cost does NOT mean that it is avoidable.
Note: See part a of the attached excel for the Segmented Income Statement Before Dropping Boat Maintenance service line, and see part b of the attached excel for the Segmented Income Statement After Dropping Boat Maintenance service line.
1. If the Boat Maintenance service line is dropped, what is the contribution margin for the Boat Fuel & Concessions line? For the Winter Storage line?
In the part b of the attached excel, we have:
Contribution margin for the Boat Fuel & Concessions line = $700,000
Contribution margin for the Winter Storage line = $1,200,000
2. Which alternative (keep or drop the Boat Maintenance line) is now more cost effective and by how much?
From the part a of the attached excel file, we have:
Operating income before dropping Boat Maintenance service line = $815,000
Operating income after dropping Boat Maintenance service line = -$185,000
Cost saving = $815,000 - $185,000 = $630,000
Therefore, keeping Boat Maintenance service line by $630,000.
Super Clinics offers one service that has the following annual cost and utilization estimates: Variable cost per visit $ 10 Annual direct fixed costs $50,000 Allocation of overhead costs $20,000 Expected utilization 1,000 visits What price per visit must be set if the clinic wants to make an annual profit of $10,000 on the service? A. $ 70 B. $ 80 C. $ 90 D. $100 E. $110
Answer:
C. $ 90
Explanation:
Number of visits = 1,000
Variable cost = $10 × 1,000 = $10,000
Fixed cost = $50,000
Overhead cost = $20,000
Required profit = $10,000
So,Total Cost = Variable Cost+ Fixed Cost+ Overhead Cost
= $10,000 + $50,000 + $20,000
= $80,000
Now, Price per Visit = (Total Cost+ Required Profit) ÷ Number of visits
= ($80,000 + $10,000) ÷ 1,000
= $90,000 ÷ 1,000
= $90
State income taxes paid$2,000 Mortgage interest on her personal residence9,000 Points paid on purchase of her personal residence1,000 Deductible contributions to her IRA3,000 Uninsured realized casualty loss (in a Federal disaster area)6,000 Tax preparation fees for her prior year income tax return400 What amount may Jordan claim as itemized deductions on her current-year income tax return
Answer:
The amount Jordan may claim as itemized deductions on her current-year income tax return is $12,900.
Therefore, the correct answer is b.$12,900.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Jordan Johnson is single and has adjusted gross income of $50,000 in the current year. Additional information is as follows:
State income taxes paid $2,000
Mortgage interest on her personal residence 9,000
Points paid on purchase of her personal residence 1,000
Deductible contributions to her IRA 3,000
Uninsured realized casualty loss (in a Federal disaster area) 6,000
Tax preparation fees for her prior year income tax return 400
What amount may Jordan claim as itemized deductions on her current-year income tax return?
a.$12,000
b.$12,900
c.$13,300
d.$15,900
b. $12,900.
Explanation of the answer is now given as follows:
The allowable deduction for personal casualty loss that occurs in a Federal disaster area has a limit to the amount by which it is higher than $100 floor and 10% of AGI which is calculated as follows:
Uninsured realized casualty loss (in a Federal disaster area) - $100 = $6,000 - $100 = $5,900
Deductible uninsured realized personal casualty loss (in a Federal disaster area) = $5,900 - ($50,000 * 10%) = $900
Therefore, we have:
Itemized deductions for the current year = State income taxes paid + Mortgage interest on her personal residence + Points paid on purchase of her personal residence + Deductible uninsured realized personal casualty loss (in a Federal disaster area) = $2,000 + $9,000 + $1,000 + $900 = $12,900
Therefore, the amount Jordan may claim as itemized deductions on her current-year income tax return is $12,900.
The correct answer is b.$12,900.
At the beginning of his current tax year, David invests $13,410 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 25 years. David receives $540 in interest ($270 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 3.4 percent. (Round your intermediate calculations to the nearest whole dollar amount.) a. How much interest income will he report this year if he elects to amortize the bond premium
Answer:
The amount of income that David will report this year if he elects to amortize the bond premium is $455.94.
Explanation:
This can be calculated as follows:
Interest income = Carrying value of the bond * Yield to maturity…………….. (1)
Where;
Carrying value of the bond = $13,410
Yield to maturity = 3.4%
Substituting the values into equation (1), we have:
Interest income = $13,410 * 3.4% = $455.94
Therefore, the amount of income that David will report this year if he elects to amortize the bond premium is $455.94.
Journalize the entries to record the following selected bond investment transactions for Hall Trust (refer to the Chart of Accounts for exact wording of account titles):
Apr. 1 Purchased for cash $240,000 of Medina City 6% bonds at 100 plus accrued interest of $3,600, paying interest semiannually.
June 30 Received first semiannual interest payment.
July 31
Sold $120,000 of the bonds at 98 plus accrued interest of $600.
CHART OF ACCOUNTSHall TrustGeneral Ledger
ASSETS
110 Cash
111 Petty Cash
120 Accounts Receivable
121 Allowance for Doubtful Accounts
131 Notes Receivable
132 Interest Receivable
141 Merchandise Inventory
145 Office Supplies
161 Investments-Medina City Bonds
165 Valuation Allowance for Trading Investments
166 Valuation Allowance for Available-for-Sale Investments
181 Land
193 Office Equipment
194 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
221 Notes Payable
231 Interest Payable
241 Salaries Payable
EQUITY
311 Common Stock
312 Paid-In Capital in Excess of Par-Common Stock
321 Preferred Stock
322 Paid-In Capital in Excess of Par-Preferred Stock
331 Treasury Stock
332 Paid-In Capital from Sale of Treasury Stock
340 Retained Earnings
350 Unrealized Gain (Loss) on Available-for-Sale Investments
351 Cash Dividends
352 Stock Dividends
390 Income Summary
REVENUE
410 Sales
611 Interest Revenue
612 Dividend Revenue
631 Gain on Sale of Investments
641 Unrealized Gain on Trading Investments
EXPENSES
511 Cost of Merchandise Sold
512 Bad Debt Expense
516 Cash Short and Over
520 Salaries Expense
531 Advertising Expense
534 Selling Expenses
535 Rent Expense
537 Office Supplies Expense
562 Depreciation Expense-Office Equipment
590 Miscellaneous Expense
710 Interest Expense
731 Loss on Sale of Investments
741 Unrealized Loss on Trading Investments
Answer:
1) Dr Investments-Medina City Bonds $240,000
Cr Interest Receivable $3,600
Cr Cash $243,600
2) Dr Cash $7,200
Cr Interest Receivable3600
Cr Interest Revenue $3,600
3) Dr Cash $118,200
Dr Loss on sale of investments $2,400
($120,000+$600-$118,200)
Cr Interest Revenue $600
Cr Investments- medina city bonds $120,000
Explanation:
Preparation of the journal entries
1) Dr Investments-Medina City Bonds $240,000
Cr Interest Receivable $3,600
Cr Cash$243,600
($240,000+$3,600)
2) Dr Cash $7,200
($240,000 x 6% x ½ =$7,200)
Cr Interest Receivable $3,600
Cr Interest Revenue $3,600
($7,200+$3,600)
3) Dr Cash $118,200
[ (120,000 x .98)-$600]
Dr Loss on sale of investments $2,400
($120,000+$600-$118,200)
Cr Interest Revenue $600
Cr Investments- medina city bonds $120,000
When converting net income to net cash provided (used) by operating activities under the indirect method increases in accounts receivable and increases in accrued liabilities are deducted. decreases in accounts payable and decreases in inventory are deducted. decreases in accounts receivable and increases in prepaid expenses are added. decreases in inventory and increases in accrued liabilities are added.
Answer:
Decrease in inventory and increases in accrued liabilities are added.
Explanation:
Jennifer is preparing for a conference. For that, she needs to access various websites to secure relevant information on various companies participating in the conference. Which software application will enable her to view the websites of all the companies?
A.
Internet
B.
URL
C.
browser
D.
email
E.
malware
Answer:
C. browser
internet is the software and the browser is the application.
How much interest (to the nearest dollar) would be saved on the following loan if the condominium were financed for 15 rather than 30 years? A $256,000 condominium bought with a 30% down payment and the balance financed for 30 years at 3.05%
Answer:
The interest saved is $49569.228 or $49569.
Explanation:
Total price of Condominium=$256,000
Downpayment=30% of total price=30%x$256,000= 76800
Amount Financed=Total Payment-Downpayment
Amount Financed=256000-76800=179200
Annual Interest rate=3.05%
Monthly interest rate =[tex]\frac{3.05\%}{12}[/tex]=0.25146%
The montly installment is calculated as follows:
[tex]M=\dfrac{P}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{r}{100}}\right)^{nt}}{\dfrac{r}{100}}}[/tex]
Here
M is the montly installmentP is the amount financedr is the montly rate in percentagen is the number of yearst is the number of months in a yearCase 1 when the number of years is 30.
So the equation becomes
[tex]M=\dfrac{P}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{r}{100}}\right)^{nt}}{\dfrac{r}{100}}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{0.25146}{100}}\right)^{30*12}}{\dfrac{0.25146}{100}}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1+0.0025146}\right)^{30*12}}{0.0025146}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1.0025146}\right)^{30*12}}{0.0025146}}\\\\M=\dfrac{179200\times {0.0025146}}{1-\left(\dfrac{1}{1.0025146}\right)^{30*12}}\\M=\dfrac{450.61632}{0.59510 }\\M=\$757.2087[/tex]
So the total amount paid in installments is
[tex]T=M\times n\times t[/tex]
So the equation becomes
[tex]T=M\times n\times t\\T=757.2087\times 30\times 12\\T=\$272595.132[/tex]
So the interest is given as
[tex]I=T-P\\I=272595.132-179200\\I=\$93395.132[/tex]
So a total interest of $93395.132 is paid when the amount is financed for 30 years.
Case 2 when the number of years is 15.
So the equation becomes
[tex]M=\dfrac{P}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{r}{100}}\right)^{nt}}{\dfrac{r}{100}}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{0.25146}{100}}\right)^{15*12}}{\dfrac{0.25146}{100}}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1+0.0025146}\right)^{15*12}}{0.0025146}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1.0025146}\right)^{15*12}}{0.0025146}}\\\\M=\dfrac{179200\times {0.0025146}}{1-\left(\dfrac{1}{1.0025146}\right)^{15*12}}\\M=\dfrac{450.61632}{0.36368 }\\M=\$1239.0328[/tex]
So the total amount paid in installments is
[tex]T=M\times n\times t[/tex]
So the equation becomes
[tex]T=M\times n\times t\\T=1239.0328\times 15\times 12\\T=\$223025.904[/tex]
So the interest is given as
[tex]I=T-P\\I=223025.904-179200\\I=\$43825.904[/tex]
So a total interest of $43825.904 is paid when the amount is financed for 15 years.
The savings on interest if the condominium is financed for 15 years is given as
[tex]S=I_{30}-I_{15}\\S=93395.132-43825.904\\S=49569.228[/tex]
The interest saved is $49569.228 or $49569.
What is the relationship between organizational design and human resources?
Answer:
There is a clear relationship between organizational design and human resources. Thus, the main purpose of organizational design is to organize the human resources of a certain project or business, with the aim of maximizing the performance of each of the human components that are part of the organization.
Therefore, between organizational design and human resources there is a structural dependency relationship, by means of which human resources are organized and therefore function according to the organizational design proposed by the managers of the organization.
Exercise 11-17 Dropping or Retaining a Segment [LO11-2] Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Department Total Hardware Linens Sales $ 4,000,000 $ 3,000,000 $ 1,000,000 Variable expenses 1,300,000 900,000 400,000 Contribution margin 2,700,000 2,100,000 600,000 Fixed expenses 2,200,000 1,400,000 800,000 Net operating income (loss) $ 500,000 $ 700,000 $ (200,000 ) A study indicates that $340,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 10% decrease in the sales of the Hardware Department. Required:
Answer:
The financial disadvantage of discontinuing the Linens Department is a decrease of $440,000 in total net operating profit.
Explanation:
Note: The requirement of this question is omitted but it is provided before answering the question to complete question as follows:
Required:
What is the financial advantage (disadvantage) of discontinuing the Linens Department?
The explanation of the answer is now provided as follows:
Note: See the lower part of the attached excel file for Determination of the financial advantage (disadvantage) (in bold red color) of discontinuing the Linens Department.
In the attached excel file, it can be seen that discontinuing the Linens Department makes both its Sales and Variable Cost to be equal to zero while only its Fixed expenses falls from $800,000 to $340,000 which is sunk costs.
Since the elimination of the Linens Department will result in a 10% decrease in the sales of the Hardware Department, the sales of the Hardware Department after eliminating Linens Department is calculated as follows:
Sales of the Hardware Department after eliminating Linens Department = $3,000,000 * (100% - 10%) = $270,000
From the attached excel file, it can be seen that the total net operating income falls from $500,000 to $60,000 after eliminating Linens Department. This implies that the total net operating profit decreases by $440,000 (i.e. $500,000 - $60,000 = $440,000)
Therefore, the financial disadvantage of discontinuing the Linens Department is a decrease of $440,000 in total net operating profit.
The following items are relevant to the preparation of a statement of cash flows for Tropical Products Inc.
1. Sale of common stock, $500,000.
2. Retirement of bonds payable, $355,000.
3. Purchase of land, $10,000.
4. Sale of equipment for $24,000, at a loss of $5,000.
5. Purchase of equity securities (not held in a trading account), $10,000.
6. Declaration of cash dividends, $40,000.
7. Loan of $30,000 resulting in a note receivable, non-trade.
8. Purchase of a patent, $20,000.
9. Proceeds from the issuance of a short-term nontrade note, $10,000.
a. Determine the amount of net cash flows that would be reported in the investing section of a statement of cash flows.
b. Determine the amount of net cash flows that would be reported in the financing section of a statement of cash flows.
Answer and Explanation:
The computation is shown below;
1. Cash flow from investing activities
Purchase of land, -$10,000.
Sale of equipment $24,000
Purchase of equity securities -$10,000
Purchase of patent -$20,000
Loan in note receivable non trade -$30,000
Net cash used by investing activities -$46,000
2. Cash flow from financing activities
Sale of common stock, $500,000.
Less Retirement of bonds payable, $355,000
Proceeds from the issuance of a short-term nontrade note, $10,000.
Net cash provided by financing activities $155,000
g Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,687,000 $2,632,000 Preferred dividends $40,000 $40,000 Average number of common shares outstanding 90,000 shares 120,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 Earnings per Share $fill in the blank 1 $fill in the blank 2 b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable
Answer:
a) EPS
2005 Earnings per share=$18.3
2005 Earnings per share=$21.6
b) EPS Variance = $3.3 favorable
Explanation:
Earnings per share(EPS) is the total earnings attributable to ordinary shareholders divided by the number of units of common stock
Earnings attributable to ordinary shareholders= Net income after tax - preference dividend
Earnings per share = (Net income after tax - preference dividend)/Number of shares
2005 Earnings per share = $1,687,000- $40,000/90,000 shares=$18.3
2006 Earnings per share=($2,632,000- $40,000)/120,000 shares=$21.6
2005 Earnings per share=$18.3
2006 Earnings per share=$21.6
EPS Variance
Comparing the EPS the Earning per share in 2006 is higher than that of 2005. Hence, the variance = 21.6-18.3= $3.3 favorable
EPS Variance = $3.3 favorable
Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, and $50 increments. Assume Apple sells $20.0 million in iTunes gift cards in November, and customers redeem $13.0 million of the gift cards in December.
8.
value:
10.00 points
Required information
Required:
1. & 2. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5.5 should be entered as 5,500,000).)
9-
3. What is the ending balance in the Deferred revenue account? (Enter your answer in dollars, not in millions. (i.e. 5.5 should be entered as 5,500,000).)
Answer:
1. & 2. Nov 30
Dr Cash $20.0 million
Cr Deferred Revenue $20.0 million
(To record the cash received for gift cards)
Dec 31
Dr Deferred Revenue $13.0 million
Cr Sales Revenue $13.0 million
3. $7,000,000
Explanation:
1. & 2. Preparation of the necessary journal entries
APPLE INC.
Journal Entries
Nov 30
Dr Cash $20.0 million
Cr Deferred Revenue $20.0 million
(To record the cash received for gift cards)
Dec 31
Dr Deferred Revenue $13.0 million
Cr Sales Revenue $13.0 million
(To record the redemption of gift cards)
3) Calculation to determine the ending balance in the Deferred revenue account
Ending Balance in Deferred revenue = $20.0 million - $13.0 million
Ending Balance in Deferred revenue= $7,000,000
Therefore ending balance in deferred revenue account is $7,000,000
In risk management, what does risk control include?
A.
risk identification
B.
risk analysis
C.
risk prioritization
D.
risk management planning
E.
risk elimination
Answer:
If I'm right it is risk prioritization
Explanation:
if I am correct about this
In risk management, risk control includes risk prioritization. The correct option is c.
What do you understand about risk management?Risk management can be understood as the identification, evaluation, and prioritization of risks followed by the coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities. Risks can come from various sources including uncertainty in international markets, threats from project failures, legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of the uncertain or unpredictable root cause.
There are two types of events: they are negative events which can be classified as risks and positive events are classified as opportunities. Risk management standards have been developed by various institutions, including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards.
Risk management has appeared in scientific and management literature since the 1920s.
Learn more about risk, here:
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Market screening is a method of market analysis and assessment that permits management to identify a small number of desirable markets by eliminating those judged to be less attractive.
When considering initial entry into international markets, or later expansion of international presence, companies Inust screen the large number of potential markets to identify the smaller subset of most promising candidates. This exercise examines one type of market screening, called country screening, and reviews the steps in this screening process as well as key tasks and considerations in each step.
Place the country screening steps in the order they occur, from first to last.
Rank the options below
1. Assess competitive forces such as the number, size, and financial strength of the competitors.
2. Assess economic and financial forces such as trends in inflation, currency exchange rates, and interest rates.
3. Assess sociocultural forces associated with doing business in a particular area or country,
4. Assess basic need potential of specific goods or services
5. Assess political and legal forces such as profit remittance barriers and policy stability
6. Assess prospective markets through personal visits to those markets with the best potential
Answer: See explanation
Explanation:
The country screening steps when placed accordingly from the first to the last will be:
1. Assess basic need potential of specific goods or services.
2. Assess economic and financial forces such as trends in inflation. currency exchange rates, and interest rates.
3. Assess political and legal forces such as profit remittance barriers and policy stability.
4. Assess sociocultural forces associated with doing business in a particular area or country.
5. Assess competitive forces such as the number, size, and financial strength of the competitors.
6. Assess prospective markets through personal visits to those markets with the best potential.
The Foundational 15 (Static) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] Skip to question [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total cost per unit $ 100 $ 68 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Foundational 13-1 (Static) Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products
Answer:
Cane Company
Total traceable fixed manufacturing overhead:
Alpha = $1,600,000
Beta = $1,800,000
Explanation:
a) Data and Calculations:
Alpha Beta
Selling price per unit $120 $80
Direct materials $ 30 $ 12
Direct labor 20 15
Variable manufacturing overhead 7 5
Traceable fixed manufacturing overhead 16 18
Variable selling expenses 12 8
Common fixed expenses 15 10
Total cost per unit $ 100 $ 68
Total traceable fixed manufacturing overhead:
Alpha = $1,600,000 ($16 * 100,000)
Beta = $1,800,000 ($18 * 100,000)
In June 2000, the SEC brought civil charges against seven top executives of Cendant Company. The SEC alleged that these officials had, among other things, inflated income by more than $100 million through improper use of company reserves. These proceedings were a result of a longstanding investigation by the SEC of financial fraud that started back in the 1980s. In your opinion, in which stage of the criminal litigation process is this case? Why?
Answer:
First stage
Explanation:
Filing of criminal charges against an offender is usually the first stage in a criminal litigation process. The investigation carried out by SEC is a preliminary process and may not be counted as First stage.
The criminal litigation process is made up seven ( 7 ) process and the investigative part of the process is to Identify the civil charges
DeLong Corporation was organized on January 1, 2017. It is authorized to issue 13,000 shares of 8%, $100 par value preferred stock, and 526,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year.
Jan. 10 Issued 84,500 shares of common stock for cash at $6 per share.
Mar. 1 Issued 5,150 shares of preferred stock for cash at $105 per share.
Apr. 1 Issued 24,000 shares of common stock for land. The asking price of the land was $91,000. The fair value of the land was $80,500.
May 1 Issued 83,500 shares of common stock for cash at $4.75 per share.
Aug. 1 Issued 11,000 shares of common stock to attorneys in payment of their bill of $38,500 for services performed in helping the company organize.
Sept. 1 Issued 12,000 shares of common stock for cash at $7 per share.
Nov. 1 Issued 2,000 shares of preferred stock for cash at $109 per share.
Journalize the transactions. (Record journal entries in the order presented in the problem.)
Journalize Common and Preferred Stock Transactions
When most businesses are first organized or established, they include what is called Articles of Incorporation which are filed with the Secretary of State of the state in which the business is incorporated. These Articles specify the capital structure of the corporation, including preferred stock and how many shares of preferred stock may be issued and the par value of each share of preferred stock. These Articles also specify the number of common shares which the corporation may issue, and either the par value, no-par value, or the stated value per share of common stock.
Answer:
DeLong Corporation
Journal Entries:
Jan. 10: Debit Cash $507,000
Credit Common stock $253,500
Credit Additional Paid-in Capital- Common stock $253,500
To record the issue of 84,500 shares at $6 per share.
Mar. 1: Debit Cash $540,750
Credit Preferred stock $515,000
Credit Additional Paid-in Capital - Preferred stock $25,750
To record the issue of 5,150 shares at $105 per share.
Apr. 1 Debit Land $80,500
Debit Loss on Purchase of Land $10,500
Credit Common stock $72,000
Credit Additional Paid-in Capital- Common stock $19,000
To record the issue of 24,000 shares for land.
May 1: Debit Cash $396,625
Credit Common stock $250,500
Credit Additional Paid-in Capital- Common stock $146,125
To record the issue of 11,000 shares at $4.75 per share.
Aug. 1: Debit Attorney Fees $38,500
Credit Common stock $33,000
Credit Additional Paid-in Capital- Common stock $5,500
To record the issue of 11,000 shares for attorney's fees.
Sept. 1: Debit Cash $84,000
Credit Common stock $36,000
Credit Additional Paid-in Capital- Common stock $48,000
To record the issue of 12,000 shares at $7 per share.
Nov. 1: Debit Cash $218,000
Credit Preferred stock $200,000
Credit Additional Paid-in Capital-Preferred stock $18,000
To record the issue of 2,000 shares at $109 per share.
Explanation:
a) Data and Analysis:
January 1, 2017, Authorized Shares:
13,000 shares of 8%, $100 par value Preferred Stock
526,000 shares of no-par Common Stock with a stated value of $3 per share
Jan. 10: Cash $507,000 Common stock $253,500 Additional Paid-in Capital $253,500
Mar. 1: Cash $540,750 Preferred stock $515,000 Additional Paid-in Capital $25,750
Apr. 1 Land $91,000 Common stock $72,000 Additional Paid-in Capital $19,000
May 1: Cash $396,625 Common stock $250,500 Additional Paid-in Capital $146,125
Aug. 1: Attorney Fees $38,500 Common stock $33,000 Additional Paid-in Capital $5,500
Sept. 1: Cash $84,000 Common stock $36,000 Additional Paid-in Capital $48,000
Nov. 1: Cash $218,000 Preferred stock $200,000 Additional Paid-in Capital $18,000
Which is NOT a reason companies integrate horizontally?
A To expand internationally.
B Tobe in control of the resources used in the production process.
C To expand brand equity across new product lines.
D To increase production capacity.
Kyoko is a hard-working college senior. One Saturday, she decides to work nonstop until she has answered 150 practice problems for her math course. She starts work at 8:00 AM and uses a table to keep track of her progress throughout the day. She notices that as she gets tired, it takes her longer to solve each problem.
Time
Total Problems Answered
8:00 AM 0
9:00 AM 60
10:00 AM 105
11:00 AM 135
Noon 150
Use the table to answer the following questions.
The marginal, or additional, benefit from Kyoko’s second hour of work, from 9:00 AM to 10:00 AM, is
45
problems.
The marginal benefit from Kyoko’s fourth hour of work, from 11:00 AM to noon, is
15
problems.
Later, the teaching assistant in Kyoko’s math course gives her some advice. “Based on past experience,” the teaching assistant says, “working on 52.5 problems raises a student’s exam score by about the same amount as reading the textbook for 1 hour.” For simplicity, assume students always cover the same number of pages during each hour they spend reading.
Given this information, in order to use her 4 hours of study time to get the best exam score possible, how many hours should she have spent working on problems, and how many should she have spent reading?
1 hour working on problems, 3 hours reading
2 hours working on problems, 2 hours reading
3 hours working on problems, 1 hour reading
4 hours working on problems, 0 hours reading
Answer:
c
Explanation:
Question 3 of 10
A typical point-of-sale display features products that are likely to be
O A. luxury goods
O B. sophisticated electronics
O C. impulse purchases
O D. display samples
SUBMIT
Answer:
C. impulse purchases
Explanation:
I just took the test
it's c. impulse purchases
Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $1.30 per share, and the current price of its common stock is $40 per share. The expected growth rate is 5 percent. a. Compute the cost of retained earnings (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows:
Winslow Inc.
Product Income Statements—Absorption Costing
For the Year Ended December 31, 20Y1
1 Cross Training Shoes Golf Shoes Running Shoes
2 Revenues $850,000.00 $700,000.00 $635,000.00
3 Cost of goods sold 413,000.00 338,700.00 419,000.00
4 Gross profit $437,000.00 $361,300.00 $216,000.00
5 Selling and administrative 389,000.00 257,900.00 359,500.00
expenses
6 Income (Loss) from $48,000.00 $103,400.00 $(143,500.00)
operations
In addition, you have determined the following information with respect to allocated fixed costs:
1 Cross Training Shoes Golf Shoes Running Shoes
2 Fixed costs:
3 Cost of goods sold $128,500.00 $90,300.00 $120,500.00
4 Selling and administrative expenses
95,900.00 82,400.00 143,500.00
These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you have determined that the effects of inventory may be ignored.
The management of the company has deemed the profit performance of the running shoe line as unacceptable. As a result, it has decided to eliminate the running shoe line. Management does not expect to be able to increase sales in the other two lines. However, as a result of eliminating the running shoe line, management expects the profits of the company to increase by $143,500.
Required:
a. Do you agree with management’s decision and conclusions? Explain your answer. (Note: You may wish to complete part (b), the variable costing income statement, first.)
b. Prepare a variable costing income statement for the three products. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign. Enter all other amounts as positive numbers.
c. Use the report in (b) to determine the profit impact of eliminating the running shoe line, assuming no other changes. Use the minus sign to indicate a decline in profit.
Answer:
Winslow Inc.
a. No. I do not agree with management's decision and conclusions. Eliminating the running shoes line increased the company-wide loss to $112,600 from a profit of $7,900.
b. Variable Costing Income Statements:
1 Cross Training Golf Shoes Running Shoes Total
2 Revenues $850,000 $700,000 $635,000 $2,185,000
3 Variable costs:
Cost of goods sold 284,500 248,400 298,500 831,400
Selling and administrative 293,100 175,500 216,000 684,600
Total 577,600 423,900 514,500 1,516,000
4 Gross profit $272,400 $276,100 $120,500 $669,000
5 Fixed costs:
Cost of goods sold 128,500 90,300 120,500 339,300
Selling & administrative 95,900 82,400 143,500 321,800
Total 224,400 172,700 264,000 661,100
6 Income (Loss) from $48,000 $103,400 $(143,500) $7,900
c. Eliminating the line only eliminated the variable costs of goods sold and selling and administrative expenses. The fixed costs were not changed with the elimination. Therefore, eliminating the running shoes line increased the company-wide loss to $112,600 from a profit of $7,900.
Explanation:
a) Data and Calculations:
Winslow Inc.
Product Income Statements—Absorption Costing
For the Year Ended December 31, 20Y1
1 Cross Training Golf Shoes Running Shoes Total
2 Revenues $850,000 $700,000 $635,000
3 Cost of goods sold 413,000 338,700 419,000
4 Gross profit $437,000 $361,300 $216,000
5 Selling & administrative
expenses 389,000 257,900 359,500
6 Income (Loss) from $48,000 $103,400 $(143,500)
1 Cross Training Golf Shoes Running Shoes Total
2 Revenues $850,000 $700,000 $635,000 $2,185,000
3 Variable costs:
Cost of goods sold 284,500 248,400 298,500 831,400
Selling and administrative 293,100 175,500 216,000 684,600
Total 577,600 423,900 514,500 1,516,000
4 Gross profit $272,400 $276,100 $120,500 $669,000
5 Fixed costs:
Cost of goods sold 128,500 90,300 120,500 339,300
Selling & administrative 95,900 82,400 143,500 321,800
Total 224,400 172,700 264,000 661,100
6 Income (Loss) from $48,000 $103,400 $(143,500) $7,900
Eliminating the running shoe line:
1 Cross Training Golf Shoes Total
2 Revenues $850,000 $700,000 $1,550,000
3 Cost of goods sold:
Variable costs 284,500 248,400 532,900
Fixed costs 128,500 90,300 339,300
Total 413,000 338,700 872,200
4 Gross profit $437,000 $361,300 $677,800
5 Selling & administrative expenses:
Variable costs 293,100 175,500 468,600
Fixed costs 95,900 82,400 321,800
Total 389,000 257,900 790,400
6 Income (Loss) from $48,000 $103,400 ($112,600)
You run a coffee shop where demand is constant week to week. You use 10 bags of roasted coffee each week. Currently, you order whole roasted coffee beans from an out-of-town supplier who charges $20 per bag and a fixed cost of $100 per delivery. Storage for each bag per month is estimated at $1. Assume your coffee shop operates for 52 weeks and 12 months per year. Assume there are no lead times.
Required:
a. Under these costs, what is the optimal order size (in bags)?
b. How often (in months) do I place an order under my solution to part a?
c. What are my annual total costs (including purchasing costs) under my solution to part a?
Answer: See explanation
Explanation:
a. Under these costs, what is the optimal order size (in bags)?
Periods per year = 52 weeks.
Weekly demand = 10bags
Annual demand, D = 10 × 52 = 520
Set up cost, S = $100
Item cost = $20.00
Holding cost per year, H= $12.00
We'll then calculate the economic order quantity, Q which will be:
= ✓2×S×D/H
= ✓(2×100×520/12
= ✓104000/12
= ✓8667
= 93
Optimal order size = 93 bags
b. How often (in months) do I place an order under my solution to part a?
Time between orders will be:
= Period per year / Orders per year
= 12 / 5.59
= 2.15
c. What are my annual total costs (including purchasing costs) under my solution to part a?
Annual total cost will be:
= Holding cost + Order cost + Purchase cost
= $11,517.14
Note that:
Orders per year = D/Q = 520/93 = 5.59
Marketing and distributing the company's product are categorized as
Answer:
thye are categorized as a channel
Explanation:
Axil Corp. has not tapped the Deutsche mark public debt market because of concern about a likely appreciation of that currency and only wishes to be a floating-rate dollar borrower, which it can be at LIBOR + 1%. Bevel Corp. strongly prefers fixed-rate DM debt, but it must pay 1.5% more than the 6.25% coupon that Axil's DM notes would carry. Bevel, however, can obtain Eurodollars at LIBOR + 1/2%. Show work and explain.
1. What is the maximum possible cost savings to Axil from engaging in acurrency swap with Bevel?
2. What is the maximum possible cost savings to Bevel from engaging in acurrency swap with Axil?
Answer:
2%2%Explanation:
First step : determine total cost experienced in both cases
Total cost experienced by both firms without swap
= Axil floating dollar cost + Bevel fixed DM cost
= Libor + 1% + 7.75% = Libor + 8.75%
Total cost of funds by both firms when they are involved in a swap
= Bevel Floating dollar cost + Axil fixed Dm cost
= Libor + 0.5% + 6.25%
= Libor + 6.75%
1) the maximum possible cost savings to Axil Corp
Libor + 8.75% - Libor + 6.75% = 2%
2) the maximum possible cost savings to Bevel Corp
Libor + 8.75% - Libor + 6.75% = 2%
Den-Tex Company is evaluating a proposal to replace its HID (high intensity discharge) lighting with LED (light emitting diode) lighting throughout its warehouse. LED lighting consumes less power and lasts longer than HID lighting for similar performance. The following information was developed: HID watt hour consumption per fixture 500 watts per hr. LED watt hour consumption per fixture 300 watts per hr. Number of fixtures 700 Lifetime investment cost (in present value terms) to replace each HID fixture with LED $500 Operating hours per day 10 Operating days per year 300 Metered utility rate per kilowatt-hour (kwh)* $0.11
*Note: A kilowatt-hour is equal to 1,000 watts per hour.
a. Determine the investment cost for replacing the 700 fixtures.
$?
b. Determine the annual utility cost savings from employing the new energy solution.
$?
c. Evaluate the proposal using net present value, assuming a 15-year life and 8% minimum rate of return. (Click here to view Present Value of Ordinary Annuity.)
$?
Answer:
a. Investment cost of replacing one fixture = $500
Number of fixtures = 700
Investment cost of replacing 700 fixtures = $500 * 700
Investment cost of replacing 700 fixtures = $350,000
b. Total Hours annually = Operating hours per day 8 Operating days per year = 10 * 300 = 3000 hours
Utility cost per kilowatt hour = $0.11
Savings in consumption per hour per fixture = 500 watts - 300 watts = 0.2 kilowatt per hour
Annual Savings in utility cost = Savings in consumption per hour * Total Hours * Utility cost * Number of fixtures
Annual Savings in utility cost = 0.2 * 3000 * 0.11 * 700
Annual Savings in utility cost = $46,200
c. Net present Value = PV of Annual Savings - Initial Investment
When Annual Savings = $46,200, Initial Investment = $350,000, Cumulative discounting factor of 8% for 15 years = 8.5595
Net present Value = ($46,200 * 8.5595) - $350,000
Net present Value = $395,448.90 - $350,000
Net present Value = $45,448.90
One thousand adults live in Milltown. Every day, they all leave work at 4:30 p.m., arrive home at exactly 5:00 p.m., and go to bed at 9:00 p.m. Three fundraisers, Alpha, Beta, and Charlie, have targeted Milltown's population. To get a donation, they must call Milltown's residents after they get home from work but before they go to bed. Because the charities raising the funds are identical, the first to call a willing donor will get the donation. Beta's manager has decided that the best time to call is 7:00 p.m. because it is exactly halfway between 5:00 p.m. and bedtime. Which of the following is true?
a. Alpha and Charlie will also make calls at 7:00 p.m.
b. Beta's manager did not choose wisely.
c. Alpha and Charlie will divide up the rest of the market, with one choosing to call at 6:00 p.m. and the other at 8:00 p.m.
d. Beta is certain to generate the most donations.
Answer:
b. Beta's manager did not choose wisely.
Explanation:
If you know that you are competing with identical charities, calling later will only result in fewer donations. The calls should start at 5 PM, and probably the three fundraisers will start calling at the same time. The only advantage that they can have depends on reaching the adults first, so the time of the calls is important.
Lauhl Corporation provides janitorial services to several office buildings. During April, Lauhl engaged in the following transactions:______.
a. On April 1, Lauhl received $24,000 from Metro Corporation to provide cleaning services over the next 6 months.
b. On April 5, Lauhl purchased and received $8,500 of supplies on credit from Eagle Supply Company. During the month, Lauhl paid $5,000 to Eagle and used $1,300 of the supplies.
c. On April 20, Lauhl performed one-time cleaning services of $2,500 for Jones Company. Jones paid Lauhl the full amount on May 10.
d. On April 30, Lauhl paid employees wages of $3,400. An additional $850 was owed to employees for work performed in April.
Required:
Calculate the amount of net income that Lauhl should recognize in April under (1) cash-basis accounting and (2) accrual-basis accounting?
Answer:
Cash-basis accounting $15,600
Accrual-basis Accounting $7,750
Explanation:
A. Calculation to determine the amount of net income that Lauhl should recognize in April under cash-basis accounting
Cash-basis accounting
=$24,000 -$5000-$3,400
Cash-basis accounting =$15,600
Therefore the amount of net income that Lauhl should recognize in April under cash-basis accounting is $15,600
B. Calculation to determine the amount of net income that Lauhl should recognize in April under the accrual-basis Accounting
Accrual-basis Accounting=($24,000/6) -$1300 + $2500 - $3,400 - $850
Accrual-basis Accounting=$4,000-$1,300+$2,500+$3,400-$850
Accrual-basis Accounting=$7,750
Therefore the amount of net income that Lauhl should recognize in April under the accrual-basis Accounting is $7,750
The amount of net income that Lauhl should recognize in April under
(1) Accrual-basis accounting is $7,750
(2) Cash-basis accounting is $15,600
A. What is cash basis accounting?Cash basis refers to a major accounting method that recognizes revenues and expenses at the time cash is received or paid out.
Calculation of cash-basis accounting
= $24,000 - $500 - $3,400
= $15,600
Hence, the amount of net income that Lauhl should recognize in April under cash-basis accounting is $15,600
B. What is accrual-basis Accounting?Accrual accounting recognizes revenue when it's earned and expenses when they're incurred, regardless of when money actually changes hands.
Calculation of Accrual-basis accounting.
= ($24,000/6) - $1300 + $2500 - $3,400 - $850
= $4,000 - $1,300 + $2,500 + $3,400 - $850
= $7,750
Hence, the amount of net income that Lauhl should recognize in April under the accrual-basis Accounting is $7,750
Learn more about cash and accrual basis accounting here : https://brainly.com/question/14640855
An analysis of stockholders' equity of Hahn Corporation as of January 1, 2020, is as follows: Common stock, par value $20; authorized 100,000 shares; issued and outstanding 90,000 shares $1,800,000 Additional Paid-in capital 900,000 Retained earnings 760,000 Total $3,460,000 During 2020, the company entered into the following transactions: Acquired 2,500 shares of its stock for $75,000. Sold 2,000 treasury shares at $35 per share. Sold the remaining treasury shares at $20 per share. Assuming no other equity transactions occurred during 2020, what should Hahn report at December 31, 2020, as total additional paid-in capital?
Answer:
$905,000
Explanation:
Calculation to determine what should Hahn report at December 31, 2020, as total additional paid-in capital
Total Additional Paid-in capital=$900,000 + (2,000 × $5) –[(2,500-2,000)× $10]
Total Additional Paid-in capital=$900,000 + (2,000 × $5) – (500 × $10)
Total Additional Paid-in capital=$900,000 + $10,000-$5,000
Total Additional Paid-in capital = $905,000
Therefore The amount that Hahn should report at December 31, 2020, as total additional paid-in capital is $905,000
