Answer: See explanation
Explanation:
Based on the information given in the question, the increase or decrease in the retained earnings will be calculated as:
= (10,000,000 - 400,000) × 15% × $15
= 9,600,000 × 0.15 × 15
= 21,600,000
The retained earnings will decrease by $21.6 million
The options given aren't correct.
A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be running very low. A major milestone has been reached where the first two activities have been totally completed and the third activity is 70% complete. The planners were expecting to be only57% through the third activity at this time. The first activity involves prepping the site for the bridge. It was expected that this would cost $1,427,000 and it was done for only $1,307,000. The second activity was the pouring of concrete for the bridge. This was expected to cost $10,507,000 but was actually done for $9,007,000. The third and final activity is the actual construction of the bridge superstructure. This was expected to cost a total of $8,507,000. To date, they have spent $5,007,000 on the superstructure. Calculate the schedule variance, schedule performance index, and cost performance index for the project to dat
Answer:
Schedule variance = $1,105,910
Schedule performance index = 1.066
Cost performance index = 1.168
Explanation:
Note: The requirement of the question is not complete. The complete requirement is therefore provided before answering the question.
Calculate the schedule variance, schedule performance index, and cost performance index for the project to date. (Round your "performance index" values to 3 decimal places.)
The explanation of the answers is now provided as follows:
Budgeted cost of work schedule = Expected cost of first activity + Expected cost of second activity + (Expected cost third activity * Expected percentage of completion) = $1,427,000 + $10,507,000 + ($8,507,000 * 57%) = $16,782,990
Budgeted cost of work performed = Expected cost of first activity + Expected cost of second activity + (Expected cost third activity * Actual percentage completed) = $1,427,000 + $10,507,000 + ($8,507,000 * 70%) = $17,888,900
Actual cost to date = Actual cost of first activity + Actual cost of second activity + Actual amount spent on third activity to date = $1,307,000 + $9,007,000 + $5,007,000 = $15,321,000
Therefore, we have:
Schedule variance = Budgeted cost of work performed - Budgeted cost of work schedule = $17,888,900 - $16,782,990 = $1,105,910
Schedule performance index = Budgeted cost of work performed / Budgeted cost of work schedule = $17,888,900 / $16,782,990 = 1.066
Cost performance index = Budgeted cost of work performed / Actual cost to date = 1.168
You are considering two mutually exclusive projects. Project A costs $3.6 million, has a required return of 14.5 percent, and an IRR of 14.3 percent. Project B costs $4.1 million, has a required return of 16 percent, and an IRR of 15.6 percent. Which project(s) should be accepted
Answer:
Neither
Explanation:
The internal rate of return is a capital budgeting method that is used to determine the profitability of a project.
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
The decision rule when using the internal rate of return is to undertake the project if the internal rate of return is greater than the required return of the project. If this is not met, the project should be rejected.
If choosing between multiple projects, the decision rule is to choose the projects with the highest internal rate of return. This is because that project would be the most profitable.
Neither of the project should be selected because the IRR of both projects is less than their required returns
Loger's, a high-end apparel company in Bruslon, an Asian country, cuts back on production as consumers start turning to basic products such as food because of the economic downturn in the country. The company also lays off many of its employees to further cut down expenses. In the context of the business cycle, Bruslon is most likely going through a period of _____.
a. economic expansionb. economic integration
c. economic recovery
d. economic contraction
Answer:
d. economic contraction
Explanation:
Contraction is in economics means it is business cycle phase where the overall economu should be fall. Also the contraction should arise when the cycle of the business is in peak but it should be prior to became as a trough
So at the time of economic contraction, the company normally took the measures of the cost cutting
So as per the given situation, the option d is correct
Selected accounts with some amounts omitted are as follows: Work in Process Oct. 1 Balance 23,000 Oct. 31 Goods finished X 31 Direct materials 94,300 31 Direct labor 194,900 31 Factory overhead X Finished Goods Oct. 1 Balance 14,700 31 Goods finished 329,500 If the balance of Work in Process on October 31 is $203,500, what was the amount of factory overhead applied in October? a.$94,300 b.$220,800 c.$421,400 d.$194,900
Answer:
b.$220,800
Explanation:
Calculation to determine what was the amount of factory overhead applied in October
Finished goods during October $ 329,500
Add: Balance of work in progress on October 31 $203,500
Less: Balance of work in progress on October 1 (23,000)
Less: Direct Materials $(94,300)
Less: Direct Labor ($194,900)
Factory Overhead applied in October $$220,800
Therefore the amount of factory overhead applied in October is $220,800
Consistent with IFRS, if the fair value of convertible bonds for which no active market exists cannot be determined, the value of the bonds can be calculated based on the
Answer:
present value of the bonds' cash flows using the market interest rate.
Explanation:
IFRS stands for International Financial Reporting Standards. It is a set of the accounting rules as well as standards which determines how the accounting level can be reported in the business statements.
The IFRS is restrictive to the fair value choice option for any financial assets and also the liabilities.
Consistent with the IFRS, the fair value of the convertible bonds can be determined by the present value of the cash flow of the bonds by using the interest rate of the market.
Assume banks are required to hold reserves equal to 20 percent of deposits. Instructions: Enter your responses as a whole number. a. How much excess reserves does the bank hold
Answer: $100
Explanation:
If the reserve requirement is 20% then the required reserves being held by the company is:
= Total deposits * reserve requirement
= 8,000 * 20%
= $1,600
The reserves held by the company of $1,700 comprise of both the required reserves and the excess reserves. The excess reserves will therefore be calculated as:
Excess reserves = Reserves - Required reserves
= 1,700 - 1,600
= $100
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2018 fiscal year was $664,000. Depreciation and amortization expense of $95,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:
Decrease in accounts receivable $30,000
Increase in inventories 10,000
Increase prepaid expenses 9,300
Increase in salaries payable 10,800
Decrease in income taxes payable 19,000
Required:
Prepare the operating activities section of the 2018 statement of cash flows.
Answer:
Net cash flow from operating activities $761,500
Explanation:
The preparation of the operating activities section is as follows;
Net income $664,000
Add: depreciation & amortization $95,000
Add: Decrease in accounts receivable $30,000
Less: Increase in inventories 10,000
Less: Increase prepaid expenses 9,300
Add: Increase in salaries payable 10,800
Less: Decrease in income taxes payable 19,000
Net cash flow from operating activities $761,500
Paris Corporation holds a $100,000 unrealized net capital gain and a capital loss carryforward that will expire in the current year. Paris is subject to a 14 percent cost of capital. Its marginal tax rate is 40 percent. Should Paris accelerate the recognition of this gain from next year to this year, assuming a net capital loss carryforward in each of the following amounts? Paris is subject to a 14 percent cost of capital. Its marginal tax rate is 40 percent.
a. $40,000
b. $10,000
c. Repeat parts a and b, but assume that Paris is subject to a 6 percent cost of capital.
Answer:
Hence the answer is given as follows,
Sales and purchase-related transactions using perpetual inventory system The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system. July 3. Purchased merchandise on account from Hamling Co., list price $77,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $920 added to the invoice. 5. Purchased merchandise on account from Kester Co., $44,400, terms FOB destination, 2/10, n/30. 6. Sold merchandise on account to Parsley Co., $15,810, terms n/15. The cost of the goods sold was $9,370. 7. Returned merchandise with an invoice amount of $12,750 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $248,000. The cost of the goods sold was $130,940. 22. Sold merchandise on account to Tabor Co., $53,800, terms 2/10, n/30. The cost of the goods sold was $35,600. 23. Sold merchandise for cash, $37,930. The cost of the goods sold was $20,540. 28. Paid Parsley Co. a cash refund of $6,420 for returned merchandise from sale of July 6. The cost of the returned merchandise was $2,990. 31. Paid MasterCard service fee of $3,850. Required: Journalize the transactions.
Answer:
Essex Company
Journal Entries:
July 3. Debit Inventory $57,515
Credit Accounts payable (Hamling Co.) $57,515
To record the purchase of inventory at list price of $77,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $920 added to the invoice.
July 5. Debit Inventory $43,512
Credit Accounts payable (Kester Co.)
To record the purchase of goods on account at list price of $44,400, terms FOB destination, 2/10, n/30.
July 6. Debit Accounts receivable (Parsley Co.) $15,810
Credit Sales revenue $15,810
To record the sale of goods on credit terms n/15.
Debit Cost of goods sold $9,370
Credit Inventory $9,370
To record the cost of goods sold.
July 7. Debit Accounts payable (Kester Co.) $12,495
Credit Inventory $12,495
To record the return of goods with invoice amount of $12,750 purchased on July 5 from Kester Co.
July 13. Debit Accounts payable (Hamling Co.) $57,515
Credit Cash $57,515
To record the payment on account
July 15. Debit Accounts payable (Kester Co.) $31,017
Credit Cash $31,017
To record the payment on account.
July 21. Debit Cash $15,810
Credit Accounts receivable (Parsley Co.) $15,810
To record the receipt of payment on account.
July 21. Debit Cash (MasterCard) $248,000
Credit Sales revenue $248,000
To record the sale of goods on account.
Debit Cost of goods sold $130,940
Credit Inventory $130,940
To record the cost of goods sold.
July 22. Debit Accounts receivable (Tabor Co.) $52,724
Credit Sales revenue $52,724
To record the sale of goods on account with invoice of $53,800 terms 2/10, n/30.
Debit Cost of goods sold $35,600
Credit Inventory $35,600
To record the cost of goods sold.
July 23. Debit Cash $37,930
Credit Sales revenue $37,930
To record the sale of goods for cash.
Debit Cost of goods sold $20,540
Credit Inventory $20,540
To record the cost of goods sold.
July 28. Debit Sales returns $6,420
Credit Cash (Parsley Co.) $6,420
To record the refund for returned goods.
Debit Inventory $2,990
Credit Cost of goods sold $2,990
To record the cost of goods returned.
July 31. Debit Service fee (MasterCard) $3,850
Credit Cash $3,850
To record the service fee paid to MasterCard.
Explanation:
a) Data and Analysis:
July 3. Inventory $57,515 Accounts payable (Hamling Co.) $57,515 list price $77,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $920 added to the invoice.
July 5. Inventory $43,512 Accounts payable (Kester Co.)
$44,400, terms FOB destination, 2/10, n/30.
July 6. Accounts receivable (Parsley Co.) $15,810 Sales revenue $15,810
terms n/15.
Cost of goods sold $9,370 Inventory $9,370
July 7. Accounts payable (Kester Co.) $12,495 Inventory $12,495
invoice amount of $12,750 purchased on July 5 from Kester Co.
July 13. Accounts payable (Hamling Co.) $57,515 Cash $57,515
July 15. Accounts payable (Kester Co.) $31,017 Cash $31,017
July 21. Cash $15,810 Accounts receivable (Parsley Co.) $15,810
July 21. Cash (MasterCard) $248,000 Sales revenue $248,000
Cost of goods sold $130,940 Inventory $130,940
July 22. Accounts receivable (Tabor Co.) $52,724 Sales revenue $52,724 $53,800 terms 2/10, n/30.
Cost of goods sold $35,600 Inventory $35,600
July 23. Cash $37,930 Sales revenue $37,930
Cost of goods sold $20,540 Inventory $20,540
July 28. Sales returns $6,420 Cash $6,420
Inventory $2,990 Cost of goods sold $2,990
July 31. Service fee (MasterCard) $3,850 Cash $3,850
Find the compound amount for the deposit. Round to the nearest cent. $15,000 at 8% compounded semiannually for 10 years
Answer:
$17,866.85
Explanation:
Use the following formula to calculate the compound amount
Compound Amount = Future value of deposit - Initial deposit
Where
Future value of deposit = Initial Deposit x ( 1 + Periodic interest rate )^numbers of compounding periods = $15,000 x ( 1 + ( 8% x 6/12 ) )^(10 x 12/6 ) = $32,866.85
Initial Deposit = $15,000
Placing values in the formula
Compound Amount = $32,866.85 - $15,000
Compound Amount = $17,866.85
Carnelian Company sells bicycles at $200 each. Variable cost per unit is $160, and total fixed cost is $120,600. Calculate the sales that Carnelian must make to earn an operating income of $21,500. a. $238,833.
b. $716,500.
c. $243,800.
d. $626,000.
Answer:
Carnelian Company
The sales that Carnelian must make to earn an operating income of $21,500 is:
= $710,500.
Explanation:
a) Data and Calculations:
Selling price per bicycle = $200
Variable cost per unit = $160
Contribution margin per unit = $40 ($200 - $160)
Contribution margin percentage = $40/$200 * 100 = 20%
Fixed cost = $120,600
Target operating income = $21,500
Sales in dollars to earn target operating income = (Fixed cost + Target Income)/Contribution margin ratio
= $120,600 + $21,500/20%
= $142,100/0.2
= $710,500
The company's variable overhead costs are driven by machine-hours. What would be the total budgeted overhead cost for next month if the activity level is 2,400 machine-hours rather than 2,500 machine-hours? Assume that the activity levels of 2,500 machine-hours and 2,400 machine-hours are within the same relevant range. Group of answer choices
Answer:
$60,380
Explanation:
Missing word "Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity Level - 2500 Machine Hours - Variable Overhead Cost: Supplies 12,250 Indirect Labor ---22,000 Fixed Overhead: Supervisor 15,500 Utilities -- 5500 Depreciation --- 6500 Total Cost --- 61,750"
So, at activity level of 2500
Total variable overhead cost = Supplies + Indirect labor
Total variable overhead cost = $12,250 + $22,000
Total variable overhead cost = $34,250
So, at activity level of 2400
Total variable overhead cost = $34,250 * 2,400/2,500
Total variable overhead cost = $34,250 * 0.96
Total variable overhead cost = $32,880
So, at 2,400 hours
Total overhead cost = Variable overhead cost + Fixed overhead cost
Total overhead cost = $32,880 + Supervisor salary + Utilities + Depreciation
Total overhead cost = $32,880 + $15,500 + $5,500 + $6,500
Total overhead cost = $60,380
roject A costs $6,000 and will generate annual after-tax net cash inflows of $2,150 for five years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year
Answer:
It will take 2.79 years to cover the initial investment.
Explanation:
Giving the following information:
Project A costs $6,000 and will generate annual after-tax net cash inflows of $2,150 for five years.
The payback period is the time required to cover the initial investment:
Year 1= 2,150 - 6,000= -3,850
Year 2= 2,150 - 3,850= -1,700
Year 3= 2,150 - 1,700= 450
To be more accurate:
(1700/2150)= 0.79
It will take 2.79 years to cover the initial investment.
Gabbe Industries is a division of a major corporation. Last year the division had total sales of $23,615,600, net operating income of $3,164,490, and average operating assets of $5,492,000. The company's minimum required rate of return is 19%.
Required:
a. What is the division's margin?
b. What is the division's turnover?
c. What is the division's return on investment (ROI)?
Answer:
Gabbe Industries
a. Division's margin
= 13.40%
b. Division's turnover
= 4.3x
c. Division's return on investment (ROI)
= 57.62%
Explanation:
a) Data and Calculations:
Sales = $23,615,600
Net operating income = $3,164,490
Average operating assets = $5,492,000
Minimum required rate of return = 9%
a. Division's margin =Net operating income/Sales * 100
= $3,164,490/$23,615,600 * 100
= 13.40%
b. Division's turnover = Sales/Average operating assets
= $23,615,600/$5,492,000
= 4.3x
c. Division's return on investment (ROI) = Net operating income/Average operating assets
= $3,164,490/$5,492,000 * 100
= 57.62%
If you place a stop-loss order to sell 100 shares of stock at BDT 55 when the current price is BDT 62, how much will you receive for each share if the price drops to BDT 50?
Answer:
55 per share
Explanation:
A stop-loss is used to immediately sell a stock when it goes down to a certain point. In this example, 50 is beneath 55 so as BDT heads towards 50 it will reach 55. At 55, the selling begins and thus the investor gets 55 per share.
A corporation acquired a copyright by issuing 1,000 shares of $5 par common stock. At the time of the exchange, the stock was selling for $40 per share. The copyright had a carrying value of $18,000 to the author. The purchasing corporation should assign to the copyright a value of
Answer:
the purchasing corporation should assign to the copyright a value of $40,000
Explanation:
The computation of the copyright value is given below:
= Number of shares acquired for purchasing a copyright × selling stock per share
= 1,000 shares × $40
= $40,000
hence, the purchasing corporation should assign to the copyright a value of $40,000
Following are selected accounts for a company. For each account, indicate whether it will appear on a budgeted income statement (BIS) or a budgeted balance sheet (BBS).
a. Sales …………………………………….._____
b. Administrative salaries paid….._____
c. Accumulated depreciation………._____
d. Depreciation expense………………_____
e. Interest paid on bank loan….….._____
f. Cash dividends paid…………………_____
g. Bank loan owed………………………_____
h. Cost of goods sold………………….._____
Answer:
Find the answers below
Explanation:
a. Sales ……………………………………. Budgeted Income Statement
b. Administrative salaries paid…..Budgeted Income Statement
c. Accumulated depreciation………._____ Budgeted Balance Sheet
d. Depreciation expense……………Budgeted Income Statement
e. Interest paid on bank loan….….Budgeted Income Statement
f. Cash dividends paid…………………Budgeted Income Statement
g. Bank loan owed………………………Budgeted Income Statement
h. Cost of goods sold.........Budgeted Balance Sheet
Steve is part of a production team that has researched and chosen a new manufacturing process to improve product quality. He has discovered data that disputes some of the claims of the production team but decides to ignore the information and support the team's original decision. Steve is being adversely influenced by
Answer: groupthink
Explanation:
Following the information given in the question, it can be deduced that Steve is being adversely influenced by groupthink.
Groupthink is when a group of people reach a consensus and agree on a particular thing without thinking about other alternatives or the consequences. Groupthink is typically based on the desire not to upset others. In this case, Steve doesn't want to upset and dispute the claims of others.
Define Total Quality Management (TQM) and Lean Production.
Total Quality Management (TQM) is an on-going improvement management plan. Furthermore, TQM ensures that equipment is properly maintained and a recent type, and workers are well-trained. However, most companies who use Total Quality management also utilize other lean processes, not just TQM.
State statutes may allow purchasers of defective automobiles to pursue remedies in addition to those provided by the UCC. The seller or manufacturer is given opportunities to remedy the defect. This is called a warranty disclaimer.
a. True
b. False
Answer:
b. False
Explanation:
A warranty disclaimer is defined as a written document or a statement which informs the buyer that the seller of the product is not [tex]\text{bound by any warranty }[/tex]or guarantees or any promises regarding the product.
This disclaimer releases the seller from any legal liabilities for any defects or failure of the products.
Thus, the answer is False.
Which statement in the given text points to George being an ethical leader?
George had been working as a manager in a company that ran a chain of restaurants. His company had been going through a lot of transition in the past year because they wanted to improve their public image.
George made sure that the restaurant served all the dishes that were popular in the locality.
George set up standards regarding the disposal of the restaurant’s waste products and made sure they were followed.
He also heavily advertised about the company’s food along the various highways. He also ran advertisements in national newspapers.
He set up a close-knit monitoring system in the kitchens and the service area to make sure that the quality standards were maintained.
Answer:
George set up standards regarding the disposal of the restaurant’s waste products and made sure they were followed.
83) Suppose in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies. a. What is the opportunity cost of producing an auto body for the United States
Answer:
Opportunity cost = 0.25 motor engine
Explanation:
Below is the given value:
In the U.S. ,Opportunity cost of 1 motor engine = 4 auto bodies
In the Canada, Opportunity cost 1 motor engine = 2 auto bodies
Below is the calculation for opportunity cost pf 1 auto body in the U.S.
Opportunity cost = Motor engine / Auto body
Opportunity cost = 1 / 4
Opportunity cost = 0.25 motor engine
Suppose Torche Corporation has the following results related to cash flows for 2020: Net Income of $10,000,000 Increase in Accounts Payable of $800,000 Increase in Accounts Receivable of $600,000 Decrease in Inventory of $100,000 Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands. What is the Net Cash Flow from Operating Activities?
Answer:
9,700,000
Explanation:
Essentially... a lot. I would recommend learning about debits and credits. Short explanation is credits are negative and debits are positive. So an increase to a debit is adding to the net value, just as a decrease to a credit adds net value.
We start with 10,000,000.
We subtract 800,000 from this as we are increasing AP, a credit.
We are now at 9,200,000
We then add 600,000 from AR, a debit that is increasing.
We are at 9,800,000.
Finally, we subtract 100,000 because we are decreasing Inventory, a debit.
Our final value is 9,700,000
The price elasticity of gasoline supply in the United States is 0.4. If the price of gasoline rises by 8%, what is the expected change in the quantity of gasoline supplied in the United States?
A. 3.2%
B. + 0.32%
C. + 32.0%
D. + 3.2%
Answer:
a
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
0.4 == quantity / 8
3.2%
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
In the short run, fixed costs: Group of answer choices are an important feature in a firm's decision to produce or not produce. have no impact on a firm's profit level. remain constant. do not exist.
Answer:
remain constant.
Explanation:
The short run is a period where all factors of production are fixed. In the short run, a firm would continue to produce if price is above average variable cost. If this is not the case, it would shut down
The long run is a period where all factors of production are varied. It is known as the planning time for a company
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
XYZ Co. expects to sell 26,000 pools for $15 each. Direct materials cost is $3 per pool, direct labor cost is $5 per pool, and manufacturing overhead cost is $1.62 per pool. The following inventory levels apply to 2019: Beginning inventory Ending inventory Direct materials 20,000 units 22,000 units Work-in-process inventory 0 units 100 units Finished goods inventory 1,800 units 2,600 units How many pools need to be produced in 2019
Answer:
250120
Explanation:
Total pools is equal to 26,000
Directable cost is equal to $5 per pool
Manufacturing overhead equals 1.62 dollars per pool
Direct costes equals $3 per pool
We add up this costs
5+1.62+3 = 9.62 dollars in total
In 2019 the total amount of pools that needs to be produced can be gotten by multiply 26000 with 9.62
26000x9.62
= 250,120
A company purchased $2,000 of merchandise on August 15 with terms 1/10, n/30. On August 17, it returned $200 worth of merchandise. On August 18, it paid the amount due. The amount of the cash paid on August 18 equals:________
a. $2,000.
b. $1,800
c. $1,782
d. $1,620.
e. $1,260.
The amount of the cash paid is $1,782
Let understand the question aims to solve the amount of cash paid for purchase of a merchandise $2,000, there is also some return of the merchandise worth $200.
On Aug 15, Purchase merchandise $2,000, On Aug 17, Return merchandise $200, Discount = 1%Amount of cash paid = ($2,000 - $200) - 1% discount
Amount of cash paid = $1,800 - ($1,800)*1%
Amount of cash paid = $1,800 - $18
Amount of cash paid = $1,782
In conclusion, on August 18, the amount of the cash paid is $1,782.
See similar solution here
brainly.com/question/13056437
Interim financial statements:
A. Are always prepared before any adjustments have been recorded.
B. Show the liabilities above assets.
C. Cover less than one year, usually spanning one-, three-, or six-month periods.
D. Report revenues when incurred and expenses when earned
Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents.$7,000 cash deposit in checking account.$28,000 bond investment due in 20 years.$7,000 U.S. Treasury bill due in 1 month.$400, 3-year loan to an employee.$1,800 of currency and coins.$700 of accounts receivable.
Answer:
the cash and cash equivalents is $15,800
Explanation:
The computation of the cash and cash equivalents is given below:
= Cash deposit + U.S. Treasury bill due in 1 month + currency and coins
= $7,000 + $7,000 + $1,800
= $15,800
hence, the cash and cash equivalents is $15,800
The same is to be considered and relevant
Database Systems is considering expansion into a new product line. Assets to support expansion will cost $970,000. It is estimated that Database can generate $2,060,000 in annual sales, with an 6 percent profit margin. What would net income and return on assets (investment) be for the year
Answer and Explanation:
The computation is shown below:
net income is
= sales × profit margin
= $2,060,000 × 0.06
= $123,600
And,
return on assets is
= net income ÷ total assests
= $123,600 ÷ $970,000
= 12.74%
In this way these two things should be calculated
and, the same should be considered
