Answer:
Pitts = $19,890
Filbert = $10,140
Witten = $8,970
Explanation:
First, calculate the distributable income
Distributable Income = Net income - Total salary allowances = $64,000 - ( $13,000 + $4,000 + $8,000 ) = $64,000 - $25,000 = $39,000
Now calculate the net income share of each partner using following formula
Share = Distributable profit x Income ratio
Pitts = $39,000 x 51% = $19,890
Filbert = $39,000 x 26% = $10,140
Witten = $39,000 x 23% = $8,970
What should you not do in an adjustment letter?
a. Begin your letter with a positive sentence
b. Use negative words
c. Make unrealistic promises
d. Explain how you are complying
e. Blame customers
Answer:
c. Make unrealistic promises
b. Use negative words
e. Blame customers
Answer:
a
Explanation:
positivity always wins
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________.
Answer:
The correct answer is "$15,000".
Explanation:
Given:
Value,
= $250,000
Interest rate,
= 6%
The Interest Payment will be:
[tex]Value\times Interest \ rate[/tex]
= [tex]250,000\times 6[/tex]%
= [tex]15,000[/tex] ($)
What the difference between international accounting and domestic accounting
Explanation:
International accounting (IAS) includes accounting standards and concepts of various countries. MNC's which operates in various countries need to follow the local accounting procedure and then need to compile the data so the overall performance of the company, can be determined. This also involves different currencies making the work difficult.
Domestic accounting (DAS) - every country have their own accounting standards and methods which must be followed while preparing books of accounts and are called domestic accounting. It is followed by companies which deal in only domestic business. Domestic accounting is done in home currency and is easier than international accounting.
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100 per unit. Production was 67,200 units, while sales were 50,400 units. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. b. Determine the difference in variable costing and absorption costing operating income. $fill in the blank 2
Answer:
a. The variable costing operating income is less than absorption costing operating income.
b. The difference in variable costing and absorption costing operating income is:
= $739,200.
Explanation:
a) Data and Calculations:
Fixed manufacturing costs per unit = $44
Variable manufacturing costs per unit = $100
Production units = 67,200
Sales units = 50,400
Ending inventory = 16,800
Income Statements Variable Absorption
Costing Costing
Costs of goods sold: $5,040,000 $7,257,600
Fixed expenses 2,956,800
Total costs $7,996,800 $7,257,600 $739,200
b) The difference in variable costing and absorption costing operating income is because of the absorbed fixed costs in ending inventory, which is now carried forward to the next accounting period.
Costs of $5,000 were incurred to acquire goods and make them ready for sale. The goods were shipped to the buyer (FOB shipping point) for a cost of $200. Additional necessary costs of $400 were incurred to acquire the goods. No other incentives or discounts were available. What is the buyer's total cost of merchandise inventory?a. $5,000.b. $5,200.c. $5,400. d. $5,600.
Answer:
d. $5,600
Explanation:
The computation of the total cost of merchandise inventory is shown below:
Cost of goods purchased $5,000
Add: Shipping charges (FOB point) $200
Additional necessary costs to purchase the goods $400
Buyer’s total cost of merchandise inventory $5,600
Hence, the total cost of merchandise inventory is $5,600
Therefore the option d is correct
Atkins Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. How does this transaction affect the accounting equation for Atkins?A. Assets would decrease $1,750 and liabilities would decrease $1,750.B. One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect.C. Assets would increase $1,750 and liabilities would increase $1,750.D. Assets would increase $1,750 and equity would increase $1,750.E. Liabilities would decrease $1,750 and equity would increase $1,750.
Answer: B. One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect
Explanation:
From the information given in the question, the journal entry at the time of sales will be represented as:
Debit Accounts receivable $1,750
Credit Sales $1750
Now, when the credit receipt is received as illustrated in the question, the journal entry will be:
Debit Cash $1,750
Credit Accounts receivable $1,750
Therefore, one asset would increase $1,750 and a different asset would decrease $1,750, causing no effect.
The correct option is B.
Which ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes?
Answer:
Fixed-charge coverage ratio
Explanation:
The fixed-charge coverage ratio can be regarded as a rato that gives the measurements of the ability of a firm have to cover all her fixed charges. These fixed charges could be expense as well as debt payments and interest. It displays the wellness that earnings of a company has to cover its fixed expenses. This ratio is considered by bank before they lend money to a business. It should be noted that Fixed-charge coverage ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes.
As a firm keeps producing more of a product, it learns to make the product cheaper. This is an example of: Economies of scale The experience curve Economies of scope Location economies g
Answer:
Economies of scale
Explanation:
When it comes to retaining employees, it is not enough to have a diverse organization, it must be inclusive too. A. True B. False
Answer: True
Explanation:
Diversity involves having different demographical groups being represented in a company's labor force such as different races and genders. This gives the company an edge because they can draw upon the experiences of these workers to find out how best to appeal to a particular demographical group.
Diversity is not enough however because inclusion is important as well. Inclusion means that these various groups are able to contribute meaningfully to the company instead of just being hired for publicity purposes. They should have management positions and the like to show that they are indeed part of the company.
On November 1, 2015, Lendem, Inc. loaned an employee $100,000 at 6% with both the interest and principal due in one year. The adjusting entry to record the interest earned but not received as of December 31, 2015 includes a: A. debit to Interest Receivable of $1,000 B. debit to Interest Revenue of $1,000 C. debit to Interest Payable of $6,000 D. debit to Cash of $5,000 E. debit to Interest Receivable of $6,000
Answer:
A. debit to Interest Receivable of $1,000
Explanation:
The journal entry is given below;
Interest Receivables ($100,000 × 6% × 2 ÷ 12) $1,000.00
To Interest Revenue $1,000.00
(being the interest earned but not received is recorded)
Here the interest receivable is debited as it increased the assets and credited the interest revenue as it also increased the revenue
Your uncle repays a $150 loan from Tenth National Bank (TNB) by writing a $150 check from his TNB checking account. Assume these funds are the only loans and deposits available for your uncle and the bank.
Required:
Write the T-account table.
Answer: See explanation
Explanation:
The T-account for your uncle before the loan is repaid will be:
Your Uncle:
Assets: Bank accounts $150
Liabilities: Loan $150
Tenth National Bank
Assets: Loan and advance $150
Liabilities: Deposits $150
The T-account and TNB for your uncle after the loan is repaid will be:
Your Uncle
Assets: Bank account $0
Liabilities: Loan $0
Tenth National Bank
Assets: Loan and advance $0
Liabilities: Deposits $0
On June 1, 20--, a depreciable asset was acquired for $5,460. The asset has an estimated useful life of five years (60 months) and no salvage value. Using the straight-line depreciation method, calculate the book value as of December 31, 20--. If necessary, round your answer to two decimal places.
Answer:
$4823
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
5460 / 5 = 1092
7/12 X 1092 = 637
5460 - 637 = 4823
If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate?
a. 1.33
b. 1.00
c. 0.75
d. 1.25
Answer:
d. 1.25
Explanation:
In a business context, the capacity utilization rate is a value that allows the company know how well they are performing compared to what the recorded optimal levels are. In order to calculate this value we simply divide the current operating level for a specific time-period by the optimal level of that same time period, which in this case would be 1 hour. Therefore, in this case we would divide 500 by 400 which would give us 1.25.
You currently have $150,000 in an IRA designated for retirement. If you save an additional $100 at the end of every month and expect to earn an annual return of 12 percent, how much do you expect to have in the IRA in 10 years?
Answer:
$518,061.90
Explanation:
The value of the retirement savings at retirement date is the future value of both its current balance of $150,000 and future value of $100 per month for 10 years compounded at the monthly rate of return
FV=PV*(1+r)^n+ monthly savings*(1+r)^n-1/r
PV=$150,000
r=monthly rate of return=12%/12=1%=0.01
monthly savings=$100
n=number of monthly savings in 10 years=10*12=120
FV=$150000*(1+0.01)^120+$100*(1+0.01)^120-1/0.01
FV=$150000*(1.01)^120+$100*(1.01)^120-1/0.01
FV=$150000*3.30038689+$100*(3.30038689-1)/0.01
FV=$150000*3.30038689+$100*2.30038689/0.01
FV=$495,058.03+$ 23,003.87
FV=$518,061.90
Maxim manufactures a hamster food product called Green Health. Maxim currently has 15,500 bags of Green Health on hand. The variable production costs per bag are $2.90 and total fixed costs are $21,000. The hamster food can be sold as it is for $10.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost. The additional processing will yield 15,500 bags of Premium Green and 4,100 bags of Green Deluxe, which can be sold for $9 and $7 per bag, respectively. The incremental revenue of processing Green Health further into Premium Green and Green Deluxe would be:_________.
a. $163,200.
b. $13,200.
c. $8,200.
d. $5,000.
e. $168,200.
Answer:
b. $13,200.
Explanation:
Revenue from the sale of Green Health bags = Number of bags * Selling price
Revenue from the sale of Green Health bags = 15,500 bags * $10
Revenue from the sale of Green Health bags = $155,000
Revenue from Premium Green = Number of bags * Selling price
Revenue from Premium Green = 15,500 bags * $9
Revenue from Premium Green = $139,500
Revenue from Green Deluxe = Number of bags * Selling price
Revenue from Green Deluxe = 4,100 bags * $7
Revenue from Green Deluxe = $28,700
Incremental revenue = Revenue from Premium Green + Revenue from Green Deluxe - Revenue from Green Health\
Incremental revenue = $139,500 + $28,700 - $155,000
Incremental revenue = $13,200
So, the incremental revenue of processing Green Health further into Premium Green and Green Deluxe would be $13,200.
Krenshaw Company reported total sales revenue of $80,000, total expenses of $72,000, and net income of $8,000 for the year ended December 31, 2009. During 2009, accounts receivable increased by $3,000, merchandise inventory decreased by $2,000, accounts payable increased by $1,000, and $5,000 in depreciation expense was recorded. Assuming no other adjustments to net income are needed, the net cash inflow from operating activities using the indirect method was:
Answer: $13000
Explanation:
Following the information provided in the question, the net cash inflow from operating activities using the indirect method will be calculated as follows:
Net Income = $8,000
Add: Depreciation expense = $5,000
Add: Decrease in inventory = $2,000
Add: Increase in account payable = $1,000
Less: Increase in account receivable (3,000)
Cash inflow from operating activities = $13000
The following department data are available: Total materials costs $172000 Equivalent units of production - materials 50000 Total conversion costs $105000 Equivalent units of production - conversion costs 30000 What is the total manufacturing cost per unit
Answer:
6.94
Explanation:
The total cost of materials is $172,000
The equivalent unit of production materials is 50,000
The total conversion costs are $105,000
The equivalent unit of production is 30,000
Therefore the total manufacturingg costs per unit can be calculated as follows
172,000/50,000
= 3.44
105,000/30,000
= 3.5
3.44+3.5
= 6.94
Physical-world observations are a type of information available to businesses today and include information gathered through Multiple Choice point of sale information. global positioning systems. enterprise resource planning data. customer relationship management systems.
Answer:
Option D (Customer relationship management systems) is the right option.
Explanation:
A management technique aimed at developing, strengthening, and strengthening connections with carefully scripted users just to optimize value proposition, business profitability but instead wealth maximization.It must be commonly used mostly for technology firms and technologies that assist throughout the management of external client contacts.The other three options are not related to the given scenario. So option D is the correct one.
The available information for today's business such as Physical-world observations are information that can be assessed by D:Customer relationship management.
Customer relationship management can be regarded as technology that is needed to manage the company's relationships as well as interactions with customers. This system helps companies in having firm connection to customers for improved profitability.Therefore, option D is correct.
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MC Qu. 85 Gladstone Co. has expected sales of... Gladstone Co. has expected sales of $362,000 for the upcoming month and its monthly break even sales are $345,000. What is the margin of safety as a percent of sales, rounded to the nearest whole percent
Answer:
Margin of safety= $17,000
Explanation:
Giving the following information:
Expected sales= $362,000
Monthly break-even sales= $345,000
To calculate the margin of safety in dollars, we need to use the following formula:
Margin of safety= (current sales level - break-even point)
Margin of safety= 362,000 - 345,000
Margin of safety= $17,000
Which of the following is a false statement?
A. Certain states have no state income tax.
B. Depending on where you live, you may pay no state income taxes.
C. All states have a flat state tax.
D. Most states have state income tax
Answer:Its C.
Explanation:
Its C because only 11 states have flat taxes at the moment.
Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8 Direct labor 24 Overhead 40 Total costs per unit $ 72 An outside supplier offers to provide Epsilon with all the units it needs at $60 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to:
Answer:
If the company produces the units, it will save $4.
Explanation:
First, we need to calculate the relevant cost of making the units in-house. We will consider only the incremental overhead cost:
Make in-house:
Direct material= 8
Direct labor= 24
Avoidable Overhead= 40*0.6= 24
Total cost= $56
Buying:
Total cost= $60
If the company produces the units, it will save $4.
Consider an auctioneer who is selling an item through an auction. It is known that the 25 risk-neutral bidders have affiliated values that are distributed between $0 and $500 million. Based on this information, the auction type that will maximize expected revenue is:____.
1. English auction.
2. second-price, sealed-bid auction.
3. first-price, sealed-bid auction and Dutch auction.
4. English auction and second-price, seal-bid auction.
Answer:
2. second-price, sealed-bid auction.
Explanation:
In the given situation, it is mentioned that there is 25 risk -neutral bidders that contains the affiliated values and the same is to be allocated between $0 and $500 million
So, here the type of an action that could maximize the expected revenue is the second price i.e. sealed bid auction as in this the bidder provides the maximum price that received the good in the second maximum price
Therefore, the second option is correct
The F. Mercury, Capital account has a credit balance of $42,000 before closing entries are made. Total revenues for the period are $60,200, total expenses are $42,300, and withdrawals are $11,000. What is the correct closing entry for the expense accounts
Answer: Debit Income Summary $42,300; Credit Expense accounts $42,300
Explanation:
It should be noted that the expense accounts have a normal debit balance and therefore in such case will be closed by crediting of the accounts.
In such case, the income summary account will be debited, and the expenses account will then be credited.
Based on the information given, the correct closing entry for the expense accounts will be:
Debit Income Summary $42,300
Credit Expense accounts $42,300.
Suppose that the owner of Boyer Construction is feeling the pinch of increased premiums associated with workersâ compensation and has decided to cut the wages of its two employees (Albert and Sid) from $25 per hour to $21 per hour. Assume that Albert and Sid view income and leisure as "goods," that both experience a diminishing rate of marginal substitution between income and leisure, and that the workers have the same before- and after-tax budget constraints at each wage. Albert and Sid's opportunity set is presented below:What is the value of A when the wage is $25?What is the value of A when the wage is $21?At the wage of $25 per hour, both Albert and Sid are observed to consume 14 hours of leisure (and equivalently supply 10 hours of labor). After wages were cut to $21, Albert consumes 12 hours of leisure and Sid consumes 16 hours of leisure. Determine the number of hours of labor each worker supplies at a wage of $21 per hour:Albert's supply of labor = _______Sid's supply of labor = ________How can you explain the seemingly contradictory result that the workers supply a different number of labor hours?A. Albert has no income effect, and Sid has no substitution effect when the wage declines to $21.B. Albert's substitution effect dominates his income effect when the wage declines to $21, and vice versa for Sid.C. Albert has no substitution effect, and Sid has no income effect when the wage declines to $21.D. Albert's income effect dominates his substitution effect when the wage declines to $21, and vice versa for Sid.
What is probability and non probability sampling?
Explanation:
I hope this will help you.
Which feature prevents a company from uilizing the private assets of its shareholders for the payment of its leabiities?
Answer: Limited Liability
Explanation: Business owners' liability for debts is restricted to the amount they put into the business.
Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $90, $200, and $108, respectively. If Baker undergoes a 2-for-1 stock split, what is the new divisor for the price-weighted index
Answer:
2.25
Explanation:
Divisor = (Sum of prices after split) * Number of stocks / Sum of prices before split
Divisor = ($90 + $200/2 + $108) * 3 / $90 + $200 + $108
Divisor = $298*3 / $398
Divisor = $894 / $398
Divisor = 2.246231155778894
Divisor = 2.25
So, the new divisor for the price-weighted index is 2.25.
If a sales increase is forecasted, how will it affect expenses on the pro forma income statement if market conditions are expected to remain stable? There will be no effect on expenses. Expenses will decrease. It depends on the type of product being sold. Expenses will increase.
Answer:
Expenses will increase.
Explanation:
In this method, the revenue should be rised according to the forecasting method also the expense contains the similar percentage of revenue that was for the previous periods
So in the case when the revenue is increased so the expense should also be increased with the real terms
Therefore the last option is correct
Qualcomm (QCOM) is expected to generate annual earnings per share of $3.70 and is currently trading for $62.64. Assuming that investors require a return of 13% for QCOM stock, what is the approximate fractional amount of the current stock price reflected in PVGO
Answer: 0.55
Explanation:
Based on the information given, the approximate fractional amount of the current stock price reflected in PVGO will be calculated thus;
Earning per share, EPS = $3.70
Price per share, P= $62.64
Rate of return, k = 13%
Therefore,
PVGO = Price per share - (Earnings per share/Rate of return)
PVGO = P-EPS/k
= 62.64 - 3.70/13%
= 62.64- 28.46
= $34.18
Since it's to be represented as a fraction, this Will be:
= 34.18/62.64
= 0.55
Based upon the following data for a business with a periodic inventory system, determine the cost of merchandise sold for August. Merchandise inventory, August 1 $ 96,610 Merchandise inventory, August 31 100,530 Purchases 254,660 Purchases returns and allowances 13,340 Purchases discounts 6,320 Freight in 4,070Cost of Merchandise Sold for August = ______.
Answer:
Cost of merchandise = $235150
Explanation:
Below is the calculations:
Cost of merchandise = Opening inventory - ending inventory + purchases - purchase return - purchase discount + freight
Now plug the value in the above formula:
Cost of merchandise = 96610 - 100530 + 254660 - 13340 - 6320 +4070
Cost of merchandise = $235150
