Answer:
See journal entries below.
Explanation:
The copy right is known as an intangible asset that is purchased to a business hence debited to factor in its purchase value while the bank is credited for the payment for the purchase.
Although the copyright is amortized for 12 years, the copyright protection expires after 12 years - which is the legal year irrespective of its plan to market and sell the painting for 19 years.
• Entries to record to record the purchase of copyrights on January 1, 2017.
Date
January 1,2017
Copyright Dr $510,000
Bank Cr $510,000
(Being purchase of 12 years painting copyrights)
• Annual amortization on December 31, 2017
December 31, 2017
Amortization Dr $42,500
Copyright Cr $42,500
(Being annual amortization cost on 12 years painting copyright)
Suppose that a worker in Boatland can produce either 5 units of wheat or 25 units of fish per year, and a worker in Farmland can produce either 25 units of wheat or 5 units of fish per year. There are 30 workers in each country. No trade occurs between the two countries. Boatland produces and consumes 75 units of wheat and 375 units of fish per year while Farmland produces and consumes 375 units of wheat and 75 units of fish per year. If trade were to occur, Boatland would trade 90 units of fish to Farmland in exchange for 80 units of wheat. If Boatland now completely specializes in fish production, how many units of fish could it now consume along with the 80 units of imported wheat?
Answer:
660 units of fish
Explanation:
Boatland's production = 150 units of wheat or 750 units of fish
opportunity cost of producing fish = 150/750 = 0.2 units of wheat
opportunity cost of producing wheat = 750/150 = 5 units of fish
Farmland's production = 750 units of wheat or 150 units of fish
opportunity cost of producing fish = 750/150 = 5 units of wheat
opportunity cost of producing wheat = 150/750 = 0.2 units of fish
If Boatland trades 90 units of fish in exchange for 80 units of wheat, its remaining production will be = 750 (maximum possible production of fish) - 90 (units traded) = 660 units of fish
If the Board of Governors of the Federal Reserve increases the reserve requirement then the money supply will decline. True False
Answer:
i think the answer is true please let me know if it is incorrect
Explanation:
A simple random sample of 20 observations is derived from a normally distributed population with a known standard deviation of 3.2. You may find it useful to reference the z table.
a. Is the condition that X−X− is normally distributed satisfied?
Yes
No
b. Compute the margin of error with 95% confidence. (Round intermediate calculations to at least 4 decimal places. Round "z" value to 3 decimal places and final answer to 2 decimal places.)
c. Compute the margin of error with 90% confidence. (Round intermediate calculations to at least 4 decimal places. Round "z" value to 3 decimal places and final answer to 2 decimal places.)
d. Which of the two margins of error will lead to a wider interval?
The margin of error with 95% confidence.
The margin of error with 90% confidence.
Answer:
1. It is satisfied
2. 1.4
3. 1.18
4. 95% confidence is wider
Explanation:
1. It is normally distributed since n<30
2. Margin of error with 95% confidence
= Alpha = 1 - 0.95
= O.05
Alpha/2 = 0.025
Z(0.025) = 1.960
Margin of error = z(1.960)*SD/√n
= 1.960*(3.2/√20)
= 1.960 x 0.7156
= 1.4025
Approximately 1.4
3. At 90%
Alpha = 1 -0.9
= 0.10
Alpha/2 = 0.05
Z(0.05) =1.645
E = 1.645 x 3.2/√20
= 1.645 x 0.7176
= 1.177
Approximately 1.18
4. From the calculations in 2 and 3 it is obvious that the margin of error with 95% confidence interval is wider.
Compute and Use the Degree of Operating Leverage (LO6-8) Engberg Company installs lawn sod in home yards. The company 's most recent monthly contribution format income statement follows:
Amount %age of sales
Sales $ 143,000 1001
Variable expenses 57,200 408
Contribution margin 85,800 603
Fixed expenses 19,000
Net operating income $ 66,800
Required:
1. What is the company's degree of operating leverage?
2. Using the degree of operating leverage, estimate the impact on net operating Income of a 16% Increase in sales.
3. Construct a new contribution format income statement for the company assuming a 16% Increase in sales.
Answer:
1. 1.28
2. increase in operating Income of 20,48 %
3.New Contribution Format Income Statement
Sales ($ 143,000 × 1.16) $165,880
Variable expenses ($57,200 × 1.16) ($66,352)
Contribution margin $99,528
Fixed expenses ($19,000 )
Net operating income $80,528
Explanation:
The degree of operating leverage shows the times Earnings Before Interest and Tax will change as a result of a change in sales contribution.
Degree of operating leverage = Contribution ÷ Earnings before Interest and Tax
= $85,800 ÷ $ 66,800
= 1.28
An increase in sales of 16% will lead to an increase in operating Income of 20,48 % (16% × 1.28).
Answer:
Please see answers below.
Explanation:
1. The company's degree of operating leverage = Contribution ÷ Net operating income
Contribution = $85,800
Net operating income = $66,800
= $85,800 / $66,800
= 1.28
2. Impact on ney operating income of a 16% increase in sales
Revised contribution = $85,800 + 16%
= $85,800 + $13,728
= $99,528
Revised net operating income = $99,528 - $19,000(Fixed cost)
= $80,528
Degree of operating leverage = $99,528 / $80,528
= 1.24
3. Contribution format income statement ;
Sales $143,000 + 16% = $165,880
Less variable cost $57,200 + 16% = $66,352
Contribution margin = $99,528
Less fixed cost = $19,000
Net operating income = $80,528
What is the expected annual capital gain yield for Orange Corp stock, based on the Constant Dividend Growth Model
Complete Question:
What is the expected annual capital gain yield for Orange Corp stock, based on the Constant Dividend Growth Model? The company plans to pay an annual dividend of of $4.12 per share in one year. The expected annual growth rate of the dividend is 12.9%, and the required rate of return for the stock is 16.63%. Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34).
Answer:
12.9%
Explanation:
As we know that:
Capital Gain Yield = (P1 - P0) / P0
Step 1: Find P0
Po = D1 / (Ke - g)
Here
D1 is $4.12 per share
Ke is 16.63%
g is 12.9%
By putting values, we have:
Po = $4.12 / (16.63% - 12.9%)
= $110.46
Step 2: Find P1
P1 = D2 / (Ke - g)
Here
D2 = D1 * (1 + 12.9%) = $4.12 per share * (1 + 12.9%) = $4.65
Ke is 16.63%
g is 12.9%
By putting values, we have:
Po = $4.65 / (16.63% - 12.9%)
= $124.70
Step3: Find Annual Capital Gain Yield
Capital Gain Yield = (P1 - P0) / P0
Now by putting values, we have:
Capital Gain Yield = ($124.7 - $110.46) / $110.46
= 12.9%
The Medicare Supplement Right of Return Provision (Free Look Period) allows the buyer a period of ________ to return a policy and receive a full refund.
Answer:
30 days
Explanation:
This right of return provision allows the buyer a period of 30 days. This period is referred to as the free look period. It is a must that these Medicare supplement policies have notices that that are boldly written on the number one page of the policy that states that the policy holder have the right to return the policy during a period of 30 days from when it was delivered and for the person to receive full refund.
Optimal order quantities exist when the curves for the order-processing cost per unit and inventory-carrying cost per unit ________.
Answer:intersect
Explanation:
The optimal order quantity is also referred to as the economic order quantity. It is used to know the optimal quantity that need to be ordered in order to avoid wastage and also reduce cost. It is a cost-effective strategy.
Optimal order quantities exist when the curves for the order-processing cost per unit and inventory-carrying cost per unit intersect.
Whistle Stop pays a constant annual dividend of $4 on its stock. The company will maintain this dividend for the next 3 years and will then cease paying dividends forever. What is the current price per share if the required return on this stock is 15.6 percent
Answer:
$9.04
Explanation:
Calculation for the current price per share
Using this formula
P0 = Annual dividend[1 − (1/1+Required return)]/ Required return
Let plug in the formula
P0=$4[(1- (1/1+0.156)]/.156
P0 = $4[1 − (1/1.1563)]/.156
P0 = $9.04
Therefore the current price per share will be $9.04
Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash flows of $13,000,000, $23,000,000, and 29,000,000 over the next three years. The cost of capital is 20 percent. What is the internal rate of return that Turnbull can earn on this project? (Do not round intermediate computations. Round final answer to the nearest percent.)
Answer:
44%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
Internal rate of return can be determined using a financial calculator
Cash flow in year 0 = $-30 million
Cash flow in year 1 = $13 million
Cash flow in year 2 = $23 million
Cash flow in year 3 = $29 million
IRR = 44%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Various financial data for SunPath Manufacturing for 2015 and 2016 follow. 2015 2016 Output: Sales $ 300,000 $ 330,000 Inputs: Labor $ 40,000 $ 43,000 Raw Materials: $ 45,000 $ 51,000 Energy: $ 10,000 $ 9,000 Capital Employed: $ 250,000 $ 262,000 Other: $ 2,000 $ 6,000 What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2015 and 2016
Answer:
% change in multi-factor productivity = 2.88%
% change in raw materials productivity = -2.94%
% change in labor productivity = 2.33%
Explanation:
2015 2016
Output:
Sales $300,000 $330,000Inputs:
Labor $40,000 $43,000 Raw Materials: $45,000 $51,000 Energy: $10,000 $9,000 Capital Employed: $250,000 $262,000 Other: $2,000 $6,000multi-factor = total output / (labor costs + materials costs + overhead costs)
MFP 2015 = $300,000 / ($40,000 + $45,000 + $10,000 + $250,000 + $2,000) = 0.8646
MFP 2016 = $330,000 / ($43,000 + $51,000 + $9,000 + $262,000 + $6,000) = 0.8895
% change = (0.8895 - 0.8646) / 0.8646 = 0.0288 = 2.88%
raw materials productivity = total output / materials costs
raw materials productivity 2015 = $300,000 / $45,000 = 6.6667
raw materials productivity 2016 = $330,000 / $51,000 = 6.4706
% change = (6.4706 - 6.6667) / 6.6667 = -0.0294 = -2.94%
labor productivity = total output / labor costs
labor productivity 2015 = $300,000 / $40,000 = 7.5
labor productivity 2016 = $330,000 / $43,000 = 7.6744
% change = (7.6744 - 7.5) / 7.5 = 0.0233 = 2.33%
3. “The International Monetary Fund (IMF) and the World Bank are two institutions that have outlived their usefulness”. Do you agree?
Answer:
“The International Monetary Fund (IMF) and the World Bank"
Have they outlived their usefulness?
No.
The IMF and the World Bank have not outlived their usefulness. They remain very useful and relevant to our world today. The problem they have experienced stem in part from the neglect of their purposes, because of the near-absence of the grassroot touch. They can refocus on their purposes and reduce elitistism, and then they continue to be useful.
But, they cannot rediscover and concentrate on their purposes without the cooperation of member-countries. Recalcitrancy does not allow any organized institutions without police power to function at their best. Member-countries must learn to cooperate with these bodies to achieve their purposes. There is still global poverty ravaging the world population, even among the rich and developed countries of the world.
In most developing countries, their national governments are traditionally entrenched as anti-developmental. While they make long and meaningless speeches at world fora, back home they do not walk their talk and so often renege on their promises. This is why it seems that the impact of these world bodies are not being felt. National governments must be able to show responsibility to allow the effects of monetary policies and agreements to benefit the poor and the vulnerable.
Explanation:
The World Bank is an international body of the United Nations with about 189 member-countries. It works with developing countries to reduce poverty, increase access to wealth, and promote global prosperity. The IMF is responsible for ensuring that the international monetary system is operational and stable to ginger sustainable global economic growth.
Use goal seek to answer this question. All else equals, to have a net income of 20,000, the COGS margin percentage must be ______, and the gross profit must be ______. Review Later
Answer:
Use goal seek to answer this question. All else equals, to have a net income of 20,000, the COGS margin percentage must be 40%, and the gross profit must be $17,250.
Explanation:
The income statement is missing, so I looked it up and the information given was:
Revenue 100,000 COGS 40,000 Gross Profit 60,000 Salaries Marketing Rent Earnings Before Tax 23,000Income Tax 25% Net Income ?Since COGS are$40,000 and total sales are $100,000, the COGS margin percentage = 40,000 / 100,000 = 40%
Since earnings before taxes are $23,000 and taxes are 25%, then net income = $23,000 x (1 - 25%) = $23,000 x 75% = $17,250
"ABC corporation is trading in the market for $51. The corporation declares a 25% stock dividend. After the ex date, the holder of 1 ABC Jan 50 Call will have:"
Answer:
1 ABC Jan 50 call
Explanation:
Based on the information given we were told that the Corporation was trading for the amount of $51 with a declare stock dividend of 25 percent, this means that After the ex date which is the day in which the stock will begin to trade without the monetary worth of the following dividend payment , which means that the holder of the 1 ABC Jan 50 call will have still have 1 ABC Jan 50 call.
Cheyenne Corp. had the following transactions that took place during the year:I.Recorded credit sales of $2250II.Collected $1350 from customersIII.Recorded sales returns of $450 and credited the customer's account.What is the total effect of these transactions on free cash flow?a) No Effectb) Cannot be determinedc) Increased) Decrease
Answer:
The correct option is d) Decrease.
Explanation:
Free cash flow (FCF) can be described as the cash that is generated by a company after cash outflows required to support operations and maintain the capital assets of the company have been accounted for.
Therefore, FCF can be calculated by adjusting for non-cash expenses, changes in working capital, and capital expenditures to reconcile net income.
The total effect of these transactions on free cash flow can be determined by first calculating the account receivable for the year as follows:
Calculation of account receivable for the year:
Particular Amount ($)
Credit sales 2,250
Cash collected from the customer (1,350)
Sales returns (450)
Account receivable 450
A partial free cash flow statement can therefore be prepared as follows:
Cheyenne Corp.
Free cash flow statement (Partial)
Particular Amount ($)
Net income xx
(Increase) decrease in non-cash current assets:
Increase in account receivable (450)
Free cash flow (450)
Since the free cash flow is negative or minus $450, it therefore implies that the total effect of these transactions on free cash flow is a decrease.
Therefore, the correct option is d) Decrease.
You have risen through the ranks of a coffee comany, from the lowly green-apron barista to the coveted black apron, and all the way to CFO. A quick internet check shows that your company's beta is 0.6. The risk-free rate is 4.1% and you believe the market risk premium to be 5.2%. What is your best estimate of investors' expected return on your company's stock (its cost of equity capital)?
Answer:
The cost of equity capital or expected rate of return is 7.22%
Explanation:
The expected rate of return or the required rate of return is the minimum rate of return required by the investors to invest in a stock or a portfolio of stock based on the systematic risk that a stock carries as represented by a stock's beta. The expected rate of return (r) of a stock can be calculated using the CAPM equation.
The CAPM equation is,
r = rRF + Beta * rpM
Where,
rRF is the risk free raterpM is the risk premium on marketr = 0.041 + 0.6 * 0.052
r = 0.0722 or 7.22%
Your portfolio is comprised of 30 percent of stock X, 25 percent of stock Y, and 45 percent of stock Z. Stock X has a beta of 1.16, stock Y has a beta of 1.47, and stock Z has a beta of 0.42. What is the beta of your portfolio
Answer:
The beta of your portfolio is 0.9045
Explanation:
Hope this help :D
A company had a beginning balance in retained earnings of $424,000. It had net income of $62,000 and paid out cash dividends of $67,000 in the current period. The ending balance in retained earnings equals:
Answer:
$419,000
Explanation:
Calculation for A company ending balance in retained earnings
Beginning balance $ 424,000
Add Net income $62,000
Less Cash dividends (67,000)
Ending Retained earning balance $ 419,000
Therefore A company ending balance in retained earnings will be $419,000
Your friend just emailed you the two photos above asking for your advice about which one looks more appealing. They plan to use it as a professional profile picture on LinkedIn, where they hope to make professional job contacts. Based on these two pictures what advice do you give your friend
Answer:
Choose the picture that demonstrates professionalism
Explanation:
Here in the attachment as we can see that there are two pictures one is unprofessional and the second one is professional.
So in order to use as a professional profile picture on Linkedin, the friend should choose the professional picture as it represents the personality, dressing, attitude, appearance, etc that helps in making the professional job contacts through which the chances of getting a better job could be more
Issuing Stock
Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 50,000 shares of preferred 2% stock, $40 par and 1,000,000 shares of $8 par common stock. The following selected transactions were completed during the first year of operations:
Journalize the transactions.
Feb. 5. Issued 600,000 shares of common stock at par for cash.
Feb. 5
Feb. 5. Issued 1,500 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
Feb. 5
Apr. 9. Issued 45,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $100,000, $310,000, and $85,000 respectively.
For a compound transaction, if an amount box does not require an entry, leave it blank.
Apr. 9
June 14. Issued 30,000 shares of preferred stock at $53 for cash.
For a compound transaction, if an amount box does not require an entry, leave it blank.
June 14
Answer:
Feb. 5. Issued 600,000 shares of common stock at par for cash.
Dr Cash 4,800,000
Cr Common stock 4,800,000
Feb. 5. Issued 1,500 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
Dr Organization costs 12,000
Cr Common stock 12,000
Apr. 9. Issued 45,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $100,000, $310,000, and $85,000 respectively.
Dr Land 100,000
Dr Buildings 310,000
Dr Equipment 85,000
Cr Common stock 360,000
Cr Additional paid in capital: common stock 135,000
June 14. Issued 30,000 shares of preferred stock at $53 for cash.
Dr Cash 1,590,000
Cr Common stock 240,000
Cr Additional paid in capital: common stock 1,350,000
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 30,000 October 20,000 August 70,000 November 10,000 September 50,000 December 10,000 The selling price of the beach umbrellas is $12 per unit. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectibleSales for June totaled $300.000. c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. d. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 5096 of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: June 30 72,000 feetSeptember 30 ___ feete. Gilden costs $0.80 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $76,000. Required: 1. Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter. 2. Prepare a production budget for each of the months July-October. 3. Prepare a direct materials budget for Gilden, by month and in total, for the third quarter. Also prepare a schedule of expected cash disbursements for Gilden, by month and in total, for the third quarter.
Answer:
1(a). Budgeted sales value are as follows:
July = $360,000
August = $840,000
September = $600,000
Third Quarter = $1,800,000
1(b). Total scheduled cash collection are as follows:
July = $303,000
August = $486,000
September = $726,000
Third Quarter = $1,515,000
2. Units of production required are as follows:
July = 36,000 units
August = 67,000 units
September = 45,500 units
October = 18,500 units
3(a). Units of raw materials required to be purchased are as follows:
July = 206,000 units
August = 225,000 units
September = 128,000 units
Third Quarter = 559,000 units
3(b). Total Scheduled Cash Disbursement are as follows:
July = $158,400
August = $172,400
September = $141,200
Third Quarter = $472,000
Explanation:
Note: The data in the question are merged together. They are therefore first sorted before answering the question. See the attached Microsoft word file for the full question with the sorted data.
Also note: For all the budgets and schedules related to questions 1 to 3, see the attached excel file.
A local county is considering purchasing some dump trucks for the trash pickups. Each truck will cost $55,000 and have an operating and maintenance cost that starts at $18,000 the first year and increases by $3,000 per year. Assume the salvage value is $12,000 at the end of 5 years and the interest rate is 10%. The equivalent annual cost of owning and operating each truck is most nearly equal to
Answer:
35,972
Explanation:
The equivalent annual cost can be calculated dividing NPV by the annuity factor
In order to find NPV first
Year1 Year2 Year3 Year4 Year5 Total
Operating and
Maintenance 18000 21000 24000 27000 30000 -
Discount factor(10%) 0.909 0.826 0.751 0.683 0.620 -
Discounted CFs 16362 17346 18024 18411 18600 88,713
Salvage 12000
Discount factor(10%) 0.620
Discounted salvage 7440 (7440)
Inital Cost (55,000) (55,000)
NPV 136,333
Calculation for EAC
NPV = 136,333
Annuity factor for 5 years = 3.790
Equivalent annual cost = NPV /Annuity factor
Equivalent annual cost = 136,333/3.790
Equivalent annual cost = 35,972
When you view a selection at Amazon and see "Customers who bought this (item) also bought ...," you are seeing the application of
Answer: collaborative filtering
Explanation:
Collaborative filtering is a technique thta helps to filter out the things that a user can like base on how other identical users react. Here, a small sample of the people with similar taste will be chosen from a larger group.
When you view a selection at Amazon and see "Customers who bought this (item) also bought ...," you are seeing the application of collaborative filtering.
Explain whether each of the following events shifts the short-run aggregate-supply curve, the aggregate-demand curve, both, and neither. Households decide to save a larger share of their income. Florida orange groves suffer a prolonged period of below-freezing temperatures. Increased job opportunities overseas cause many people to leave the country.
Answer:
1. Households decide to save a larger share of their income. - Aggregate-Demand Curve
If households in the economy started saving more of their money then this would leave less money for consumption which is one of the components of Aggregate Demand. When Consumption decreases so also will Aggregate Demand thereby shifting the Aggregate-Demand Curve to the left.
2. Florida orange groves suffer a prolonged period of below-freezing temperatures. - Short-run Aggregate Supply Curve
With the Florida Orange Groves suffering from below freezing temperatures, the oranges will not grow as much leading to a poor harvest. This will reduce the supply of oranges in the economy and shift the short-run Aggregate supply curve left.
3. Increased job opportunities overseas cause many people to leave the country. Both Aggregate-Demand Curve and Short-run Aggregate Supply Curve.
With less people in the Economy, there will be less people spending on goods and services which will cause the Aggregate Demand curve to shift to the left.
Also with people leaving the country, the labor force will decrease which will mean that less people are available to produce goods and services so the short-run Aggregate supply curve will shift left.
Your customer, age 60, is retired and living at home with a fully paid-off mortgage. Her portfolio contains growth stocks and high-quality bonds, and she is a long-time investor and comfortable with moderate risk. Her objective is a moderate level of current income to supplement her corporate pension plan distributions and the earnings from her traditional IRA. How are the distributions taxed from her IRA
Answer:
Since this person is 60 years old, she will only pay normal income taxes fro any distributions that she receives from her IRA account.
Explanation:
Contributions to a traditional IRA account are tax exempt up to a certain limit. In other words, the money that this client contributed to her IRA account reduced her taxable income. Now that she is retired and starting to receive distributions from her IRA account, she will need to pay income taxes for the money that she receives.
A Roth IRA account works differently, since the contributions are not tax exempt, but the distributions are.
Bonita Industries budgeted manufacturing costs for 65000 tons of steel are: Fixed manufacturing costs$50000 per month Variable manufacturing costs$12 per ton of steel Bonita produced 50000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March
Answer:
Total cost= $650,000
Explanation:
Giving the following information:
Fixed manufacturing costs$50000 per month
Variable manufacturing costs$12 per ton of steel
Bonita produced 50000 tons of steel during March.
The flexible budget shows the total standard cost for the actual activity.
Fixed costs= 50,000
Total variable cost= 12*50,000= 600,000
Total cost= $650,000
For a recent year, TechMart reported sales of $36,241 million. Its gross profit was $9,785 million. What was the amount of TechMart's cost of goods sold? (Enter answer in millions.)
Answer:
$26,456 million.
Explanation:
The formula to calculate the gross profit is:
Gross profit=Sales-cost of goods sold
Using this formula we can calculate the cost of goods sold as we have the information about the gross profit and the sales:
Cost of goods sold=Sales-Gross profit
Cost of goods sold=$36,241-$9,785
Cost of goods sold=$26,456
According to this, TechMart's cost of goods sold was $26,456 million.
The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 21,000 shares authorized and 10,500 shares issued, 1,100 shares outstanding $105,000 Paid-in capital in excess of par value, common stock 51,000 Retained earnings 26,000 Treasury stock 12,760 Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is:
Answer:
9,400 shares
Explanation:
Treasury stock is the difference between issued shares and outstanding shares.
Number of treasure shares = Number of issued shares - Number of outstanding shares
Number of treasure shares = 10,500 - 1,100
Number of treasure shares = 9,400 shares
Therefore, number of treasury shares is 9,400
Suppose that the federal government places a binding price floor on chocolate. To help support the price floor, the government purchases all of the leftover chocolate that consumers do not buy. If the price floor remains in place for a number of years, what do you expect to happen to each of the following?a) Quantity of chocolate demanded by consumers.b) Quantity of chocolate supplied by producers.c) Quantity of chocolate purchased by the government.
Answer And Explanation:
a) Quantity of chocolate demanded by consumers will decrease
This is because there is a minimum price which makes product more expensive. The higher the price, the less the quantity demanded
b) Quantity of chocolate supplied by producers will increase
This is because price has increased with the government's price floor. The higher the price, the higher the quantity supplied.
c) Quantity of chocolate purchased by the government will increase
This is because there is surplus supply and therefore government would need to buy more to support the price floor and buy leftover chocolates in the market
SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 4,800 of these meals using 2,350 direct labor-hours. The company paid its direct labor workers a total of $23,500 for this work, or $10.00 per hour. According to the standard cost card for this meal, it should require 0.50 direct labor-hours at a cost of $9.40 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,800 meals? 2. What is the standard labor cost allowed (SH × SR) to prepare 4,800 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance?
Answer:Please find answers in the explanation column
Explanation:
a)standard labor-hours allowed (SH) to prepare 4,800 meals
standard labor-hours =Actual output X standard direct labor hours
4,800 X 0.50 = 2,400hours
B) standard labor cost allowed
direct labor-hours per houR = $9.40
standard labor-hours = 2,400
standard labor cost =direct labor-hours per houR xstandard labor hours
= $9.40 x 2,400= $22,560
c) labor spending variance= Actual cost incurred - Standard Labor cost
= 23,500 - 22,560= 940 -- Which is unfavorable because the actual is cost is greater than the standard labor cost
D)the labor rate variance and the labor efficiency variance?
labor rate variance= (Actual rate - standard rate ) X Actual hours
($10.00 -$9.40) X 2,350= $1,410
Labor efficiency variance=(Actual hrs - standard hrs allowed) x standard rate
2,350- 2,400) X $9.40= $470 --- Favourable as the actual hours used is less than the standard hours .
Following are the accounts and balances from the adjusted trial balance of stark company
Notes payable $11,000 Accumulated depreciation building $15,000
Prepaid insurance 2,500 Accounts receivable 4,000
Interest expense 500 Utilities expense 1,300
Accounts payable 1,500 Interest payable 100
Wages payable 400 Unearned revenue 800
Cash 10,000 Supplies expense 200
Wages expense 7,500 Buildings 40,000
Insurance expense 1,800 Dividends 3,000
Common stock 10,000 Depreciation expense—Buildings 2,000
Retained earnings 14,800 Supplies 800
Services revenue 20,000
Prepare the (1) income statement and (2) statement of retained earnings for the year ended December 31 and (3) balance sheet at December 31. The Retained Earnings account balance was $35,600 on December 31 of the prior year.
Answer:
STARK COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31
PARTICULARS AMOUNT $
Service Revenue 20,000
Expenses
Supplies expense 200
Interest expense 500
Insurance expense 1,800
Utilities expense 1,300
Depreciation expense 2,000
Wages expense 7,500
Total expenses 13,300
Net profit 6,700
STARK COMPANY
STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31
Amount $
Retained earnings December 31 prior year end 14,800
Add- Net income 6,700
Less- Dividends 3,000 3,700
Retained earnings, December 31 Current year end 18,500
3. STARK COMPANY
BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31
Current Assets
Cash 10,000
Accounts receivable 4,000
Office supplies 800
Prepaid insurance 2,500
Total current asset 17,300
Non Current Assets
Buildings 40,000
Less- Accumulated dep. 15,000
Total Non Current Assets 25,000
Total Assets 42,300
Liabilities
Current liabilities
Accounts payable 1,500
Interest payable 100
Notes payable 11,000
Unearned revenue 800
Wages payable 400
Total Current liabilities 13,800
Long term liabilities
Common stock 10,000
Retained earnings 18,500 28,500
Total liabilities and capital 42,300
Financial statements are statements that keep a record of the various transactions of the firm. It keeps the records of the inflow and outflow of cash in the company and also maintains the sound wealth in the firm.
The income statement, balance sheet, and calculations have been attached below.
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