Answer:
Unearned revenues refer to cash received in advance of providing a service or product.
Explanation:
The unearned revenue is the amount i.e. collected in advance prior a service or the product is to be delivered. The same is to be shown as the liability on the balance sheet
So it is the cash received in advance before providing the service or product
Therefore the above statement represent an answer
The government sector balance is equal to net taxes ________ government expenditure on goods and services. If that number is ________, a government sector surplus is lent to other sectors; if that number is ________, borrowing from other sectors must finance a government deficit.
Answer:
less
positive
negative
Explanation:
The government sector balance is income from taxes less government spending
Government sector deficit occurs when government spending exceeds income of the government.
When deficit increases, debt increases. This is because a deficit would need to be funded by additional borrowing
When there is a surplus, government spending is less than the income of the government. Government is able to lend to other sectors
M Corporation has provided the following data concerning an investment project that it is considering:
Initial investment $230,000
Annual cash flow $132,000 per year
Expected life of the project 4 years
The net present value of the project is closest to:____.
a. $250,000.
b. $144,128.
c. $(131,000).
d. $(144,128).
Answer: $170,923.60
Explanation:
Missing information is that the discount rate is 12%.
As the cash inflow is constant, this can be termed an annuity. You just need to find the present value of an annuity for 4 years being discounted at 12%.
Present value of Annuity = Annuity * Present value interest factor of Annuity, 12%, 4 periods
= 132,000 * 3.0373
= $400,923.60
Net Present value = Present value of cash inflow - Initial investment
= 400,923.60 - 230,000
= $170,923.60
Options are for variant of question.
Ayayai Corporation reported net cash provided by operating activities of $345,000, net cash used by investing activities of $145,000, and net cash provided by financing activities of $75,000. In addition, cash spent for capital assets during the period was $200,000. No dividends were paid. Calculate free cash flow.
Answer:
the free cash flow is $145,000
Explanation:
The computation of the free cash flow is given below:
The free cash flow is
= cash flow from operating activities - capital expenditures
= $345,000 - $200,000
= $145,000
hence, the free cash flow is $145,000
The same should be considered and relevant
MC Qu. 133 Cahuilla Corporation predicts... Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in Units380 420 440 380 Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 152 units. A finished unit requires 5 pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 230 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be:
Answer:
$4,280
Explanation:
Calculation to determine what The budgeted purchases of pounds of direct material B during May should be:
For the month of APRIL
Units required to be produced in April = Units required to be sold April - Opening Inventory 40% of Sales of May
Units required to be produced in April= 380 - 152 + (420 * 40%)
Units required to be produced in April=380-152+168
Units required to be produced in April= 336 units
Total units of raw material to be purchased =336 *5 pounds
Total units of raw material to be purchased= 1,680 pounds
Now for the month of MAY
First step is to calculate May Units required to be produced in May using this formula
Using this formula
Units required to be produced in May = Sales for the month - Opening Inventory + % of Sales of June
Let plug in the formula
Units required to be produced in May= 420 -(420 * 40%) + (440 * 40%)
Units required to be produced in May= 420 -168+176
Units required to be produced in May= 428
Second step is to calculate the Total units of raw material to be purchased
Total units of raw material to be purchased = 428*5 pounds
Total units of raw material to be purchased = 2,140 pounds
Now let determine the budgeted purchases of pounds of direct material B
Purchase cost for the month = $2,140 * $2.00 per pound.
Purchase cost for the month= $4,280
Therefore The budgeted purchases of pounds of direct material B during May should be:$4,280
of 20 >
Which of the statements concerning retirement accounts is true?
A.)Since Roth IRAs are funded with post-tax dollars, they are never as attractive as pre-tax traditional IRAs.
B.)Contributions to personal retirement accounts remain the property of the individual or heirs, but Social Security
payments are transferred to others.
C.)Individuals can allocate the funds in IRAs, 401(k)s, Roth IRAs, and Social Security accounts according to their risk preferences.
D.)Individuals do not pay income tax on Social Security contributions, but there are no tax benefits tied to personal
retirement accounts.
B. Contributions to personal retirement accounts remain the property of the individual of heirs, but SS payments are transferred to others.
Contributions to personal retirement accounts remain the property of the individual or heirs, but Social Security payments are transferred to others. Thus, option B is correct.
What is retirement?Retirement can be termed as when a person leaves an active work life and takes the decision of not returning to work. people usually tend to take retirement at the age of 50 to 60. they may take full, partial, or temporary retirement.
Retirement accounts are basically created by people to have a saving, a tax-free income, and that act as social security.
If you have a retirement account, then the amount that is in the account remains with the account holder itself, but the amount of social security gets transferred to the others. Therefore, option B is the correct option.
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At year-end (December 31), Chan Company estimates its bad debts as 0.30% of its annual credit sales of $896,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $448 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.
Answer:
Explanation:
Dec 31:
Debit Bad debts expense = 0.003 × $896000 = $2688
Credit Allowance for doubtful accounts = $2688
February 1:
Debit Allowance for doubtful accounts $448
Credit Accounts receivable—P. Park $448
June 5:
Debit Accounts receivable—P. Park $448
Credit Allowance for doubtful accounts $448
June 5:
Debit Cash $448
Credit Accounts receivable—P. Park $448
Southwestern Bank offers to lend you $50,000 at a nominal rate of 6.9%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Woodburn Bank also offers to lend you the $50,000, but it will charge an annual rate of 9.0%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by Woodburn versus the rate charged by Southwestern?
a. 1.68%
b. 1.98%
c. 2.08%
d. 1.78%
e. 1.88%
Answer:
e. 1.88%
Explanation:
EAR = (1+APR/m)^m. M means compounding periods
For Southwestern Bank
EAR = (1 + 0.069/12)^12 - 1
EAR = 1.00575^12 - 1
EAR = 1.0712245 - 1
EAR = 0.0712245
EAR = 7.12%
So, the difference between the effective annual rate charged by Woodburn versus the rate charged by Southwestern is 1.88% (9% - 7.12%)
A company must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that cost $5.50 per unit to manufacture. The units can be sold as is for $3.10 each, or they can be reworked for $4.70 each and then sold for the full price of $8.60 each. If the units are sold as is, the company will be able to build 13,000 replacement units at a cost of $5.50 each, and sell them at the full price of $8.60 each. What is the incremental income from selling the units as scrap and reworking and selling the units
Answer:
Selling as is ⇒ $40,300Reworking and then selling ⇒ $50,700Explanation:
Incremental income from selling the scrap as is:
= 13,000 units * 3.10
= $40,300
Incremental cost from reworking and then selling:
= Sale of reworked units - Cost of reworking units
= (8.60 * 13,000) - (4.70 * 13,000)
= 111,800 - 61,100
= $50,700
Rajiv loves watching Downton Abbey on his local public TV station, but he never sends any money to support the station during its fundraising drives. Economists would call Rajiv a . True or False: The government can solve the problem caused by people like Rajiv by sponsoring the show and paying for it with tax revenue collected from everyone. True False True or False: The private market can solve this problem by broadcasting Downton Abbey on cable TV, since then the good would be excludable and thus no longer a public good. True False
Answer:
free rider
true
true
Explanation:
The free rider problem is a form of market failure. It occurs when people benefit from a good or service of communal nature and do not pay to enjoy these services.
Downtown abbey can be classified as a public good, if it is made a private good, the problem would be solved
A public good is a good that is non excludable and non rivalrous.
A private good is a good that is excludable and rivalrous. They are usually exchanged in the market by private sector businesses. It
Cellestial Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to $200,000.
If Processed Further
Sales Value Additional
Product Units Produced at Split-Off Costs Sales Value
A1 3,000 $10,000 $2,500 $15,000
B2 5,000 30,000 3,000 35,000
C3 4,000 20,000 4,000 25,000
D4 6,000 40,000 6,000 45,000
Which product(s) should be sold at split-off to maximize profits in the short run?
a. Product A1
b. Product D4
c. Product B2
d. Products A1 and D4
Answer:
a. Product A1
Explanation:
Calculation to determine Which product(s) should be sold at split-off to maximize profits in the short run
Product A1
Additional Revenues=Sales Value-Sales value at split-Off
Additional Revenues=$15,000-$10,000
Additional Revenues=$5,000
Difference=Additional Revenues -Additional Costs
Difference=$5,000-$2,500
Difference=$2,500
Product A1 Additional Revenues Additional Costs Difference
$5,000 $2500 $2,500
Therefore the product that should be sold at split-off to maximize profits in the short run is Product A1 Which therefore means that company should sell now
Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: 20Y1, $80,000; 20Y2, $90,000; 20Y3, $150,000; 20Y4, $150,000; 20Y5, $160,000; and 20Y6, $180,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 250,000 shares of cumulative, preferred 2% stock, $20 par, and 500,000 shares of common stock, $15 par. Assuming a market price per share of $25.00 for the preferred stock and $17.50 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock.
Answer:
Pecan Theatre Inc.
Average annual percentage return
Cost Market 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6
per share
Preferred stock $20.00 $25.00 2% 2% 2% 2% 2% 2%
Common stock $15.00 $17.50 0% 0% 0% 0.7% 0.8% 0.11%
Explanation:
a) Data and Calculations:
Dividends: Cumulative Common Stock
Preferred Stock Dividends
Dividends Per share Per share
20Y1, $80,000 $80,000 $0.40 $0 $0
20Y2, $90,000 90,000 $0.40 0 $0
20Y3, $150,000 150,000 $0.40 0 $0
20Y4, $150,000 100,000 $0.40 50,000 $0.10
20Y5, $160,000 100,000 $0.40 60,000 $0.12
20Y6, $180,000 100,000 $0.40 80,000 $0.16
Average annual percentage return
Cost Market 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6
per share
Preferred stock $20.00 $25.00 2% 2% 2% 2% 2% 2%
Common stock $15.00 $17.50 0% 0% 0% 0.7% 0.8% 0.11%
Average annual percentage return = Dividend per share/Initial Cost per share
Jennifer is the sole beneficiary of an irrevocable trust created by her father. Income and principal may be distributed to her at the trustee's discretion. Jennifer has a 5-and-5 power of appointment over the trust. Jennifer died last month at which time the trust was valued at $2,500,000. She did not withdraw any money from the trust this year. How much of the trust was included in her estate at death
Answer:
$125,000
Explanation:
Calculation to determine How much of the trust was included in her estate at death
Since she has 5-and-5 power of appointment over the trust which means that she has the ability to withdraw the GREATER of 5% of fair market value (fmv) of the trust or the amount of $5,000.
Hence, the amount that was included in her estate at death will be $125,000 which is calculated as (5%*trust valued amount of $2,500,000)
Therefore How much of the trust was included in her estate at death is $125,000
Both the demand curve and the supply curve are straight lines. If the price is $4 but only 6 units are bought and sold, producer surplus will be
Answer:
$12
Explanation:
Producer's surplus=1/2*Q*P( Just like the formula for the area of a triangle which is 1/2*base*height)
P is the price of the item which is $4
Q is the quantity bought and sold, which is 6 units in this case, hence, the producer surplus is shown thus
producer's surplus=1/2*$4*6
producer's surplus=$12
Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost of $148,000. Over its 4-year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be $8,000.
Required:
a. Compute the depreciable cost per unit.
b. Prepare a depreciation schedule.
At the beginning of the year, Shinedown, Corp., had a long-term debt balance of $46,880. During the year, the company repaid a long-term loan in the amount of $12,805. The company paid $4,890 in interest during the year, and opened a new long-term loan for $11,290. How much is the ending long-term debt account on the company's balance sheet
Answer:
Shinedown, Corp.
The ending long-term debt account on the company's balance sheet is:
= $45,365.
Explanation:
a) Data and Calculations:
Beginning long-term debt balance = $46,880
Repayment of a long-term loan = (12,805)
New long-term loan opened = 11,290
Ending balance of long-term debt = $45,365
Interest payment during the year = $4,890
b) The long-term debt account does not include the interest payment during the year. If any interest is not paid, the amount will be taken as a current liability and not a long-term debt.
Stephen is a graduate student at West University. He works part-time at the campus coffee shop earning $5,000 this year. Stephen also receives a $25,000 scholarship that pays for his tuition, fees, and books. What amount does Stephen include in his gross income
Answer:
5,000
Explanation:
Stephen is a graduate student at a university
He works part time at a shop where he earns 5,000 this is als like compensation
He receives $25,000 for scholarships
The amount Stephen includes in id groas income is 5,000
Who sets the amount or rate of real estate commissions?
Answer:
q
Explanation:
what are the purpose of the information in Management?
Answer:
The purpose of information management is to: design, develop, manage, and use information with insight and innovation. support decision making and create value for individuals, organizations, communities, and societies.
Answer:
It helps dictate how businesses form strategies, and implement processes based on them.
Read the argument below and determine the underlying principle that was used to come to the conclusion presented: A free college education for every citizen is important because it helps the United States create the best-educated workforce in the world. European countries like Germany are able to provide a free college education to their citizens, and the United States should as well. Which other argument uses the same underlying principle as the argument above?
a. Children should get free dental care, even if they drink a lot of soda which causes cavities.
b. Children should get free dental care because it will help prevent more serious issues later on and reduces future healthcare costs.
c. Every child should get free dental care, even if they can afford to pay for it.
Answer:
1. The underlying principle is
to create the best-educated workforce in the world.
2. The argument that uses the same underlying principle as the argument 1 above is:
b. Children should get free dental care because it will help prevent more serious issues later on and reduces future healthcare costs.
Explanation:
The underlying principle is a general rule which can be applied to different situations. It shows the reason for doing something or embarking on a program. For example, to offer free college education for every U.S. citizen, the underlying principle is to "create the best-educated workforce in the world."
In addition to the date of recordation, what other factor is used to determine lien priority?
Answer:
Two factors primarily determine lien priority. Firstly the lien's categorization as superior or junior, and secondly the date the lien was recorded.
Explanation:
An encumbrance is most broadly defined as
another's right to use a property without the permission of the property owner.
another's right to claim the sale proceeds of a property that has been used as collateral for a loan.
another's interest in a real property that limits the interests of the freehold property owner.
another's right to control how the freehold owner of a real property uses the property.
In addition to the date of recordation, lien's categorization is other factor used to determine lien priority.
What is lien priority?Lien priority helps to know the order in which creditors get paid following a foreclosure.
Date of recordation is one of the factor yo consider because those on the earlier dates are attended to first.
Therefore, lien priority is so base on categorization because Superiors are been attended to first.
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Cara has just come in for her morning shift , but the sales floor is a mess . Looks like the night crew didn't clean up . She groans , but then gets to work cleaning the displays before customers come . If she doesn't , who else will ? What good problem - solving skills is she exhibiting? a ) Seeking advice when necessary Ob ) Open to seeing new perspectives c ) Having a solutions - oriented attitude
Answer:
having a solutions-oriented attitude
Explanation:
she seen things wasn't done so she starts cleaning because she takes pride in her job
why multinational company are developed
Answer:
Multinationals provide an inflow of capital into the developing country.
Explanation:
This capital investment helps the economy develop and increase its productive capacity.
Steve King and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to King of $128,250. Interest of 7% on each partner's capital balance on January 1. Any remaining net income divided to King and Stevens, 1:2. King and Stevens had $75,000 and $81,000, respectively, in their January 1 capital balances. Net income for the year was $225,000. How much is distributed to King and Stevens
Answer:
King and Stevens Partnership
King Stevens Total
Distributions $162,110 $62,890 $225,000
Explanation:
a) Data and Calculations:
Annual salary allowance to King = $128,250
Interest rate on capital = 7%
Income sharing ratio = 1:2 King and Stevens
Net income for the year = $225,000
Capital balances = $75,000 King and $81,000 Stevens
King Stevens Total
Capital $75,000 $81,000 $156,000
Net income $225,000
Annual salary 128,250 0 (128,250)
Interest on capital 5,250 5,670 (10,920)
Share of profits 28,610 57,220 (85,830)
Capital, ending $237,110 $143,890 $381,000
Distributions $162,110 $62,890 $225,000
On October 1, 2020 Sheffield Corp. issued 5%, 10-year bonds with a face value of $6140000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. Bond interest expense reported on the December 31, 2020 income statement of Sheffield Corp. would be:_________
Answer: $70610
Explanation:
Following the information given, the issue price of the bond will be:
= $6,140,000 × 1.04
= $6,385,600
The premium on bonds payables will be:
= $6,385,600 - $6,140,000
= $245,600
Cash interest Payables will be:
= 6,140,000 × 5% × 3/12
= $76,750
Bond Premium amortization for Each Year will be:
= 245,600 / 10
= $24,560
Then, the premium amortized will be:
= $24,560 × 3/12
= $6,140
Therefore, the interest expenses on Dec 31 will be:
= Cash interset Payables - Premium amortized
= $76,750 - $6,140
= $70,610
A company has two segments with total sales of $500,000 and total variable costs of $343,750. Traceable fixed expenses are $50,000 and common fixed expenses are $80,000. The break even in dollars for the company as a whole equals $ _______. (Enter your answer as a whole number.)
Answer:
$416,000
Explanation:
The computation of the break even in dollars for the company is given below:
Total fixed expenses = Traceable fixed expenses + Common fixed expenses
= $50,000 + $80,000
= $130,000
Now
Contribution margin ratio = (Sales - Variable costs) ÷Sales × 100
= ($500,000 - $343,750) ÷ $500,000 × 100
= 31.25%
Now
Break-eve dollars = Fixed expenses ÷ Contribution margin ratio
= $130,000 ÷ 31.25%
= $416,000
acc 430 Firm B, a calendar year, cash basis taxpayer, leases lawn and garden equipment. During December, it received the following cash payments. To what extent does each payment represent current taxable income to Firm B
Answer: See explanation
Explanation:
a. Even though firm B received a cash of $522, only $22 which is the interest will be taxable as the $500 which is the principal isn't taxable.
b. Even though Firm B got $600 cash, there'll be no taxable income as the receipt brought about a liability. Hence, taxable income is 0.
c. Even though Firm B got $10000 cash, there'll be no taxable income as the receipt brought about a liability and the net worth wasn't increased. Hence, taxable income is 0.
d. The taxable income here will be $888.
On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway paid $330,000 for the machine and is leasing it to Zone for $40,000 per year, an amount that will return 10% to Calloway. The present value of the lease payments is $330,000. The lease payments are due each January 1, beginning in 2021. What is the appropriate interest entry on December 31, 2021
Answer:
Dr Interest receivable $29,000
Cr Interest revenue $29,000
Explanation:
Preparation of the appropriate interest entry on December 31, 2021
December 31, 2021
Dr Interest receivable $29,000
Cr Interest revenue $29,000
[($330,000-$40,000)*10%]
($290,000*10%)
(To record Interest)
Blazing Woman, a large music festival wants to secure a venue for its show coming up in two years. 19 months before the festival it enters into an agreement with Stonestock Farms. They shake hands on it, but do not write or sign any type of formal agreement. Eight months later Stonestock notified Blazing Woman that they decided against allowing their farm to be used. Can Blazing Woman enforce the agreement with the Stonestock even though it was not in writing
Answer:
No. Because the contract cannot be fully performed within a year of its creation, R is within the statute of frauds.
Explanation:
Since in the question it is mentioned that there is no written agreement so the agreement should not be enforceable as as per the law if the contract is to be treated as completed for a period of time so it should be in the written form
Here woman could not able to sue the stonstock farms
Therefore the above statement represent an answer
Standish Company manufactures consumer products and provided the following information for the month of February:
Units produced 131,000
Standard direct labor hours per unit 0.20
Standard fixed overhead rate (per direct labor hour) $2.50
Budgeted fixed overhead $65,000
Actual fixed overhead costs $68,300
Actual hours worked 26,350
Required:
a. Calculate the fixed overhead spending variance using the formula approach.
b. Calculate the volume variance using the formula approach.
Answer and Explanation:
The computation is shown below:
a. Fixed overhead Spending Variance is
= Budgeted Fixed Overhead - Actual Fixed overhead
= $65000 - $68300
= - $3300 (unfavorable)
b.
Fixed Overhead Volume Variance is
= (131000 × 0.20 × $2.50) - $65000
=$65500 - $65000
= $500 Favorable
In this way these can be determined
1. Costs that do not change with the change in the level of production for some time is classified as ________.
a. variable costs.
b. fixed costs.
c. mixed costs.
d. none of these choices are correct.
2. Under variable costing, the cost of goods manufactured consists of all except:_____.
a. direct materials.
b. direct labor.
c. variable factory overhead.
d. fixed factory overhead.
3. Costs that have characteristics of both a variable cost and a fixed cost are classified as ________.
a. variable costs.
b. fixed costs.
c. mixed costs.
d. none of these choices are correct.
Answer:
1. b. fixed costs.
2. d. fixed factory overhead.
3. c. mixed costs.
Explanation:
Costs are usually classified as fixed and variable cost. Fixed cost are cost that don not vary with the level of activities (usually expressed as units of production or sales) of an organization.
Variable cost on the other hand are cost that varies with the level of activity. A combination of these cost is called mixed cost.
Under variable costing, all cost are dependent on activity level hence are not fixed.
