Answer: $231,000
Explanation:
The budgeted cash receipts in October is:
= (85% * October sales) + (15% * September sales)
= (85% * 225,000) + (15% * 265,000)
= 191,250 + 39,750
= $231,000
will lend you $10,000 today with terms that require you to pay off the loan in 36 monthly installments of $500 each. What is the effective annual rate of interest that Laura is charging you
Extra Credit: The people of the Philippines are no stranger to typhoons and yet most people were caught off guard when the typhoon Haiyan struck and caused unprecedented number of casualties. The main reason for this was due to:_____.a. extremely strong winds that destroyed homes.b. massive flooding caused by extremely rapid and high storm surges.c. very strong rate of rainfall that triggered massive landslides.d. massive amounts of rainfall that led to dam failures throughout the Philippines.
Answer:
a. extremely strong winds that destroyed homes
Explanation:
The people of the Philippines are no stranger to typhoons and yet most people were caught off guard when the typhoon Haiyan struck and caused unprecedented number of casualties. The main reason for this was due to extremely strong winds that destroyed homes.
The typhoon Haiyan was unlike any other typhoon the people of Philippines were accustomed to, or even Asia as a continent. It came with extremely strong winds that completely leveled everything in its path, leaving in its wake a mass of casualties and both human and infrastructure.
A sporting goods manufacturer budgets production of 45,000 pairs of ski boots in the first quarter and 30,000 pairs in the second quarter of the upcoming year. Each pair of boots require 2 kg of a key raw material. The company aims to end each quarter with ending raw materials inventory equal to 20% of the following quarter's material needs. Beginning inventory for this material is 18,000 kg and the cost per kg is $8. What is the budgeted materials need in kg. in the first quarter?
A) 90,000 kg.
B) 84,000 kg.
C) 108,000 kg.
D) 102,000 kg.
E) 120,000 kg.
Answer:
B) 84,000 kg.
Explanation:
The computation of the budgeted materials need in kg. in the first quarter is given below:
begnning inventory 18000
required for production (45000 × 2) 90000
Less: closing (30000 × 2 × 20%) - 12000
Raw material needs 84000
hence, the budgeted materials need in kg. in the first quarter is 84,000
Therefore the option b is correct
Closing entries are: Multiple Choice Made to record events that occurred during the period but have not yet been recorded. Made to transfer the balances of temporary accounts to retained earnings. Made to transfer the balances of permanent accounts to retained earnings. Optional.
Answer:
Made to transfer the balances of temporary accounts to retained earnings.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.
Generally, financial statements are the formally written records of the business and financial activities of a business entity or organization.
There are four (4) main types of financial statements and these are;
1. Balance sheet: it contains financial information about assets, liability, and equity.
2. Cash flow statement: it contains financial information about operating, financial and investing activities.
3. Income statement: it contains financial information about the income and expenses of an organization.
4. Statement of changes in equity: it contains financial information about profits or loss, dividends, etc.
A closing entry can be defined as a journal entry made at the end of an accounting period to transfer all balances in the temporary accounts to a permanent account.
In Financial accounting, there are four (4) main closing entries and these include;
I. Closing expenses to income summary.
II. Closing revenues to income summary.
III. Closing dividends to retained earnings.
IV. Closing income summary to retained earnings.
This ultimately implies that, closing entries are made to transfer the balances of temporary accounts to retained earnings.
Retained earnings also known as accumulated earnings, can be defined as the total amount of net income held by a corporation for its future use after paying out dividends to its shareholders.
The retained earnings statement refers to a financial statement that enumerate changes in retained earnings for an organization over a specific period of time. The retained earnings statement is the statement of owner's equity that outlines details of changes in the amount of retained earnings (profits) over a specified period in an organization.
Exercise 6-10 Petty cash fund accounting LO P2 Palmona Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; delivery expenses, $16; and miscellaneous expenses, $43. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $450 on January 8, assuming no entry in part 2. Hint: Make two separate entries for part 3.
Answer:
1 Jan 01
Dr Petty cash 200
Cr Cash 200
2 Jan 1
Dr Postage expense 74
Cr Merchandise inventory 29
Dr Delivery expense 16
Cr Miscellaneous expenses 43
Cr Cash 162
3 Jan 08
Dr Postage expense 74
Dr Merchandise inventory 29
Dr Delivery expense 16
Dr Miscellaneous expenses 43
C Cash 162
Dr Petty cash 250
Cr Cash 250
Explanation:
1 Preparation of the journal entry to record reimburse the fund
Jan 01
Dr Petty cash 200
Cr Cash 200
2. Preparation of the reimburse it on January 8, and
Jan 08
Dr Postage expense 74
Dr Merchandise inventory 29
Dr Delivery expense 16
Dr Miscellaneous expenses 43
Cr Cash 162
3 Preparation of jourtnal for reimburse the fund and increase it to $450
Jan 08 Postage expense 74
Merchandise inventory 29
Delivery expense 16
Miscellaneous expenses 43
Cash 162
Petty cash 250
Cash 250
Dallas Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $ 37,080,000 Net operating income $ 3,108,960 Average operating assets $ 8,600,000 The company's minimum required rate of return 16 % The division's residual income is closest to:______
Answer:
1,732,960
Explanation:
The sales is $37,080,000
The net operating income is $3,108,960
The average operationg assets is $8,600,000
The required rate of return is 16%
The divisional residual income can be calculated as follows
= 3,108,960-(16/100×8,600,000)
= 3,108,960 - (0.16×8,600,000)
= 3,108,960-1,376,000
= 1,732,960
Hence the residual income is closest to $1,732,960
Stephanie wanted to save for her daughter's education. Tuition costs $10,000 per year in today's dollars. Her daughter was born today and will go to school starting at age 18. She will go to school for 4 years. Stephanie can earn 12% on her investments and tuition inflation is 6%. How much must Stephanie save at the beginning of each year if she wants to make her last savings payment at the beginning of her daughter's first year of college
Answer:
The amount that Stephanie must save at the beginning of each year if she wants to make her last savings payment at the beginning of her daughter's first year of college is:
= $6,428.46.
Explanation:
a) Data and Calculations:
Tuition costs per year in today's dollars = $10,000
Total tuition costs for 4 years in today's dollars = $40,000
Number of periods to save = 18 years
Interest rate on investments = 12%
Tuition inflation rate = 6%
Stephanie needs to save $6,428.46 at the beginning of each year, calculated as follows from an online financial calculator:
N (# of periods) 18
I/Y (Interest per year) 18
PV (Present Value) 40000
FV (Future Value) 0
Results
PMT = $6,428.46
Sum of all periodic payments = $115,712.21
Total Interest = $75,712.21
what does it mean to be "in the red"
Answer:
The expression "in the red" is used to describe a business that has negative earnings. This is in contrast to the phrase "in the black" which refers to businesses that are profitable and financially solvent. ... Before the use of computers, accountants recorded income in black ink and expenses in red ink.Explanation:
I hope it helped❤hey buddy can u do a favor to mehey buddy can u do a favor to meif u don't mind ......plz subscribe to my UTube channel - gtron9528Based on the results in (a), the CFO requested that $22,000 of cash be used to pay off the balance of the accounts payable account on December 31, 2022. Calculate the new current ratio and working capital after the company takes these actions.
Question Completion:
Crane Company
Balance Sheet
December 30, 2022
Current assets
Cash $27,000
Accounts receivable 29,700
Prepaid insurance 6,000
Total current assets $ 62,700
Equipment (net) 201,200
Total assets $263,900
Current liabilities
Accounts payable $ 22,000
Salaries and wages payable 11,000
Total current liabilities $ 33,000
Long-term liabilities
Notes payable 79,700
Total liabilities $112,700
Stockholders' equity
Common stock 100,000
Retained earnings 51,200 $151,200
Total liabilities and
stockholders' equity $263,900
Answer:
Crane Company
Dec. 30 Dec. 31
Current ratio 1.9 3.64
Working capital $29,700 $29,000
Explanation:
a) Data and Calculations:
Crane Company
Balance Sheet
December 30, 2022
Current assets
Cash $27,000
Accounts receivable 29,700
Prepaid insurance 6,000
Total current assets $ 62,700
Equipment (net) 201,200
Total assets $263,900
Current liabilities
Accounts payable $ 22,000
Salaries and wages payable 11,000
Total current liabilities $ 33,000
Long-term liabilities
Notes payable 79,700
Total liabilities $112,700
Stockholders' equity
Common stock 100,000
Retained earnings 51,200 $151,200
Total liabilities and
stockholders' equity $263,900
Dec. 30 Dec. 31
Current assets $62,700 $40,000
Current liabilities $33,000 $11,000
Working capital $29,700 $29,000
Current ratio 1.9 3.64
Working capital = Current assets - Current liabilities
Current ratio = Current assets/Current liabilities
In general, increasing price above the market equilibrium price will _______ consumer surplus and ________ producer surplus. Total surplus will _______. Reducing price below market equilibrium will ________ consumer surplus and _______ producer surplus. Total surplus will _______. Thus regulators _______ increase benefits to one group or the other, but the market ______ be efficient.
The tax incidence is the:_____
a. average tax burden borne by buyers and sellers.
b. actual tax burden borne by buyers and sellers.
c. absolute tax burden borne by buyers and sellers.
d. relative tax burden borne by buyers and sellers.
Botox Facial Care had earnings after taxes of $330,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $42.00. In 20X2, earnings after taxes increased to $386,000 with the same 200,000 shares outstanding. The stock price was $53.00. a. Compute earnings per share and the P/E ratio for 20X1. (The P/E ratio equals the stock price divided by earnings per share.) (Do not round intermediate calculations. Round your final answers to 2 decimal places.) b. Compute earnings per share and the P/E ratio for 20X2. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) c. Why did the P/E ratio change
Answer:
Botox Facial Care
20X1 20X2
a. Earnings per share $1.65 $1.93
b. P/E ratio 25.45x 27.46x
c. The P/E ratio changed from 25.45x to 27.46x following a change in earnings per share and the stock price per share.
Explanation:
a) Data and Calculations:
20X1 20X2
Earnings after taxes $330,000 $386,000
Outstanding shares 200,000 200,000
Earnings per share $1.65 $1.93
Stock price $42.00 $53.00
P/E ratio 25.45x 27.46x
Earnings per share = Earnings after taxes/Outstanding shares
P/E ratio = Stock price/Earnings per share
Franchises are attractive to business owners because
they have a proven business model.
they are typically inexpensive to buy.
they get to keep all profits.
they come with very little risk.
A. they have a proven business model.
Franchises are attractive to business owners because they have a proven business model. The correct option is A.
Why are franchises attractive?Franchises give larger companies the ability to expand and spread out while also allowing entrepreneurs and small business owners the chance to manage their own operations with the assistance and support of a larger organization with a track record of success. Franchising is a seductive strategy for achieving commercial success.
In a franchise, the business owner (the franchisor) sells the right to use its brand, goods, and operational procedures to the franchisee (the person who wants to open a new location) in exchange for a fee.
The fact that the franchisor has previously created and put the business model through testing is one of the key advantages of owning a franchise. As opposed to starting a new company from scratch, the franchisee can take advantage of the franchisor's knowledge and expertise, which lowers the risk of failure.
Thus, the ideal selection is option A.
Learn more about franchises here:
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Jim buys a 5 percent bond in the amount of $100. If the market interest rate increases to 10 percent Jim can sell his bond for up to:
Answer:
$50
Explanation:
Jim buys a 5% bond
The amount is $100
The market interest rate increases to 10%
Therefore the price at which the bond cann be sold is calculated as follows
= 5×100
= 500×0.01
= 50
Hence it can be sold for $50
Q2. Custom Cuts Landscaping year-end balance sheet lists current assets ast $458,600, fixed assets at $658,200, current liabilities of $425,950, and long term debt of $395,450. Calculate Custom Cut's shareholder equity.
Answer:
the shareholder equity is $295,400
Explanation:
The computation of the shareholder equity is given below:
We know that
Assets = liabilities + stockholder equity
$458,600 + $658,200 = $425,950 + $395,450 + shareholder equity
So, the shareholder equity is
= $1,116,800 - $425,950 - $395,450
= $295,400
Hence, the shareholder equity is $295,400
Westside Manufacturing Co.'s budget at 6,000 units of production includes $36,000 for direct labor and $3,000 for electric power. Total fixed costs are $33,000. At 7,000 units of production, a flexible budget would show: Group of answer choices variable and fixed costs totaling $45,375 variable costs of $39,000 and $33,875 of fixed costs variable costs of $45,500 and $33,000 of fixed costs variable costs of $44,000 and $33,000 of fixed costs
Answer:
variable costs of $45,500 and $33,000 of fixed costs
Explanation:
The computation of the variable cost and the fixed cost is shown below:
The fixed cost is $33,000
And, the variable cost is
= 39,000 ÷ 6,000 units × 7,000 units
= $45,500
Therefore variable costs of $45,500 and $33,000 of fixed costs
Hence, the same is to be considered and relevant
An analyst forecasts dividends over the next three years for ABC Company of $1.25, $2.00, and $2.50 respectively. He also expects that the dividend will grow at a constant rate of 3% forever after the third year. If the required rate of return is 12%, ABC stock price is closest to:
Answer:
$24.85
Explanation:
The stock price of the abc is given below:
Value of Stock after Year 3 = (Forecasted Dividend for Year 3 × Growth Rate) ÷ (Required Rate of Return - Growth Rate of Dividend)
= (2.5 × 1.03) ÷ (0.12-0.03)
= 28.61
Now
Current Stock Price = PV of all Future Dividends and Present Value of Stock after Year 3
=(1.25 ÷ 1.12) + (2 ÷ 1.12^2) + (2.5 ÷ 1.12^3) + (28.61 ÷ 1.12^3)
= 1.1161 + 1.5944 + 1.7795 + 20.3640
= $24.85
What's the meaning of the symbol S3?
A. One three-way switch
B. A single switch mounted at 3'0"
C. Three single-pole switches
D. a triple-pole switch
The answer is A
One three-way switch
Adjusting Entry for Supplies The balance in the supplies account, before adjustment at the end of the year, is $1,654. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $777.
Answer:
The adjustment is:
= Balance in supplies account - Supplies on hand
= 1,654 - 777
= $877
This amount will be sent to the Supplies expense account to show that it was incurred as an expense during the period but was not accounted for. Expenses are debited when they increase.
Date Account Title Debit Credit
XX-XX-XXXX Supplies expense $877
Supplies $877
On May 7, Jernigan Company purchased on account 640 units of raw materials at $15 per unit. During May, raw materials were requisitioned for production as follows: 224 units for Job 200 at $13 per unit and 294 units for Job 305 at $15 per unit.
Required:
Journalize the entry on May 7
Answer:
Date Account Title Debit Credit
May 7 Materials $9,600
Accounts Payable $9,600
Working:
= Units purchased * cost per unit
= 640 * 15
= $9,600
As the goods were purchased on account, they will be sent to accounts payable. Materials are assets so they will be debited when acquired.
Justin, an employee of Widget Corp., is hesitant to leave the company because he thinks that he will lose a great deal of his investments in time, effort, and benefits. In the context of organizational commitments, it is evident that Justin experiences _____. Group of answer choices normative commitment conjoint commitment affective commitment continuance commitment
Answer:
Continuance commitment
Explanation:
Organizational Commitment
This is commonly defined as employee desire or will to remain a member of the organization. It is said to influences whether an employee stays a member of the organization (is retained) or leaves to pursue another job (turns over).
Continuance Commitment
This is a type of commitment that is said to occur only when there is a profit associated with staying and a cost associated with leaving. This usually create a more passive form of loyalty. continuance commitment increases in terms of the total amount of investment (in terms of time, effort, energy, etc.) an employee has made in mastering his work role or fulfilling his organizational duties or lack of employment alternatives etc.
After learning about inflation and some of its history, what would be the inflation target that is most advisable for an economy?
Answer:
1-2%
Explanation:
In simple words, every nation in the world have some kind of central authority that works to control and keep the inflation as low as possible. However, too low inflation can also lead to recession which brings problems way worse than inflation.
Thus, keeping in mind about all the information we have studied, it is advisable to keep inflation at 1% or 2% band, so that economy can grow moderately along with no price pressure on consumers.
If the risk-free rate is 7.0%, the market risk premium is 9.0%, and the expected return on Security J is 23.8%, what is the beta for Security J
Answer:
the beta for Security J is 1.87
Explanation:
The computation of the beta is given below
As we know that
Expected return = risk free rate of return + beta ×market risk premium
23.8% = 7.0% + beta × 9.0%
So, the beta is
= (23.8% - 7.0%) ÷ 9.0%
= 1.87
Hence, the beta for Security J is 1.87
Kluber, Inc. had net income of $917,000 based on variable costing. Beginning and ending inventories were 56,700 units and 55,400 units, respectively. Assume the fixed overhead per unit was $2.10 for both the beginning and ending inventory. What is net income under absorption costing
Answer:
The answer is "[tex]\$235,410[/tex]".
Explanation:
Variable cost net income [tex]=\$917,000[/tex]
Less: Fixed overhead start [tex]56,700\times \$2.10=\$119,070[/tex]
Add: Fixed overhead termination [tex]55,400\times $2.10=\$11,6340[/tex]
Net revenue at cost of absorption [tex]=\$235,410[/tex]
g If the economy experiences economic contraction, the government can combat this with an Group of answer choices increase in government purchases increase in marginal tax rates increase in autonomous taxes increase in real interest rates
Answer:
increase in government purchases
Explanation:
If there is a contraction in the economy, the government should conduct expansionary policies to increase money supply.
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $385,900; materials of $417,000 and direct labor of $227,000. During the year Adams incurred $408,900 in materials costs, $403,400 in overhead costs and $231,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.
Answer:
$364,980
Explanation:
Computation for the amount of under- or overapplied overhead for the year.
First step is to calculate the
Predetermined Overhead using this formula
Predetermined Overhead rate = Estimated overhead/direct labor estimated
Let plug in the formula
Predetermined Overhead rate= 358,900/227,000
Predetermined Overhead rate= 158% of direct labor cost
Now let determine the Overhead applied
Overhead applied = $231,000*158%
Overhead applied= $364,980
Therefore the amount of under- or overapplied overhead for the year is $364,980
If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign.May 1: Prepaid rent for three months, $2,100May 5: Received and paid electricity bill, $70May 9: Received cash for meals served to customers, $1,530May 14: Paid cash for kitchen equipment, $3,780May 23: Served a banquet on account, $1,780May 31: Made the adjusting entry for rent (from May 1).May 31: Accrued salary expense, $3,260May 31: Recorded depreciation for May on kitchen equipment, $670
Answer:
Net loss -$1,390
Explanation:
The computation of the net income is given below:
Service revenue
On cash $1,530
ON credit $1,780
Service revenue $3,310
Less: Expense
Utilities expense -$70
Rent expense -$700
Salaries expenses -$3,260
Depreciation expense -$670
Total expenses -$4,700
Net loss -$1,390
View Policies Current Attempt in Progress In January, Dieker Company requisitions raw materials for production as follows: Job 1 $910, Job 2 $1,700, Job 3 $800, and general factory use $650. Prepare a summary journal entry to record raw materials used. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31 enter an account title for the journal entry on January 31 enter a debit amount enter a credit amount enter an account title for the journal entry on January 31 enter a debit amount enter a credit amount enter an account title for the journal entry on January 31
Answer:
Dieker Company
Journal Entry:
Debit Work in Process $3,410
Debit Manufacturing overhead $650
Credit Raw materials $4,060
To record raw materials used for production.
Explanation:
a) Data and Calculations:
Job 1 $910
Job 2 $1,700
Job 3 $800 $3,410
General factory use $650
Total $4,060
Transaction Analysis:
Work in Process $3,410 Manufacturing overhead $650 Raw materials $4,060
b) While the summary journal entry is made in Work in Process, the detailed entries are made in Job 1, Job 2, and Job 3 cost sheets.
The part can be purchased from an outside supplier at $20 per unit. If the part is purchased from the outside supplier, two thirds of the total fixed costs incurred in producing the part can be eliminated. The annual increase or decrease on the company's operating incomes as a result of buying the part from the outside supplier would be:
Answer:
$2,000 Decrease
Explanation:
Calculation to determine what The annual increase or decrease on the company's operating incomes as a result of buying the part from the outside supplier would be:
First step is to calculate C saving from not producing parts
C saving from not producing parts = $12 + (2/3 x $9)
C saving from not producing parts = $18
Now let determine The annual increase or decrease on the company's operating incomes
purchase price = $20
Annual increase or decrease =($20-$18) x 1,000
Annual increase or decrease =$2 more per unit x 1,000
Annual increase or decrease = $2,000 decrease
Therefore The annual increase or decrease on the company's operating incomes as a result of buying the part from the outside supplier would be:$2,000 Decrease
During January, its first month of operations, Dieker Company accumulated the following manufacturing costs:
Raw materials $4,500 on account, factory labor $8,100 of which $5,300 relates to factory wages payable and $2,800 relates to payroll taxes payable, and factory utilities payable $2,700.
Required:
Prepare journal entries for each type of manufacturing cost.
Answer:
Date Account titles and Explanations Debit Credit
31-Jan Raw materials inventory $4,500
Accounts payable $4,500
31-Jan Work in process inventory $8,100
Factory wages payable $5,300
Payroll taxes payable $2,800
31-Jan Manufacturing overhead $2,700
Factory utilities payable $2,700
Selected accounts with amounts omitted are as follows: Work in Process Aug. 1 Balance 268,300 Aug. 31 Goods finished 168,800 31 Direct materials X 31 Direct labor 43,300 31 Factory overhead X Factory Overhead Aug. 1 – 31 Costs incurred 108,100 Aug. 1 Balance 12,100 31 Applied X If the balance of Work in Process on August 31 is $202,600, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs? a.$12,100 b.$12,990 c.$168,800 d.$108,100
Answer:
b.$12,990
Explanation:
Calculation to determine the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs
Using this formula
Overhead applied = Direct labor cost * Predetermined overhead rate
Let plug in the formula
Overhead applied= 43,300 * 30%
Overhead applied= $12,990
Therefore the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs is $12,990
