Answer:
$344,000
Explanation:
The computation of value of investment is shown below:-
Initial Cost of investments $260,000
(20,000 shares × $13)
Add: Share of profit $22,750
($65,000 × 35%)
Add: Increase in equity
reserves $70,000
(($23 - $13) × 20,000 × 35%)
Less: Dividends received $8,750
($25,000 × 35%)
Value of investment $344,000
Therefore the value of investment is $344,000
g Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $276,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 3% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,200 before adjustment?
Answer:
accounts receivable = $276,000
total credit sales = $1,000,000
3% of accounts receivable will not be decollete = $276,000 x 3% = $8,280
if allowance for doubtful accounts has a credit balance of $2,200, you must add = $8,280 - $2,200 = $6,080
the adjusting entry should be:
Dr Bad debt expense 6,080
Cr Allowance for doubtful accounts 6,080
Since allowance for doubtful accounts is a contra asset account it has a credit balance that reduces the value of accounts receivable.
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 8.3 grams $ 2.90 per gram Direct labor 0.4 hours $ 29.00 per hour Variable overhead 0.4 hours $ 7.90 per hour The company produced 6,100 units in January using 40,210 grams of direct material and 2,470 direct labor-hours. During the month, the company purchased 45,300 grams of the direct material at $2.60 per gram. The actual direct labor rate was $28.30 per hour and the actual variable overhead rate was $7.70 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for January is:
Answer:
Manufacturing overhead rate variance= $494 favorable
Explanation:
Giving the following information:
Variable overhead 0.4 hours $ 7.90 per hour
The company produced 6,100 units in January using 2,470 direct labor-hours.
The actual variable overhead rate was $7.70 per hour.
To calculate the variable overhead rate variance, we need to use the following formula:
Manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Manufacturing overhead rate variance= (7.9 - 7.7)*2,470
Manufacturing overhead rate variance= $494 favorable
Library, Inc. has 2,500 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2017, and December 31, 2018. The board of directors declared and paid a $3,000 dividend in 2017. In 2018, $18,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2018?
Answer:
preferred stocks = 2,500 stocks x 4% x $50 par value = $5,000 preferred dividends per year
common stock = 50,000 stocks outstanding of $1 par value
in 2017, $3,000 in dividends are distributed, all to preferred stocks
In 2018, $18,000 in dividends are distributed, $7,000 to preferred stock ($2,000 cumulative from last year and $5,000 from this year) and $11,000 are distributed to common stockholders.
In 2018, each preferred stock received = $7,000 / 2,500 stocks = $2.80 per preferred stock. Each common stockholder received $11,000 / 50,000 = $0.22 per common stock.
Selected information from Frosty Freeze Corporation's accounting records and financial statements for 2022 is as follows ($ in millions): Cash paid to acquire machinery$34 Reacquired Peridot common stock 54 Proceeds from sale of land 93 Gain from the sale of land 54 Investment revenue received 73 Cash paid to acquire office equipment 87 In its statement of cash flows, Frosty Freeze should report net cash outflows from investing activities of: Multiple Choice $101 million. $28 million. $80 million. $33 million.
Answer:
$45 million
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
An increase in assets other than cash is an outflow of cash while an increase in liabilities is an inflow of cash.
Hence, the net cash outflows from investing activities (in $'million)
= -$34 + $93 + $73 - $87
= $45
Micro Miller Company’s budgeted sales for April were estimated at $700,000, sales commissions at 4% of sales, and the sales manager's salary at $80,000. Shipping expenses were estimated at 1% of sales and miscellaneous selling expenses were estimated at $1,000, plus 0.5% of sales. Determine the budgeted selling expenses on a flexible budget for April.
Answer:
$119,500
Explanation:
Solution:
Recall that
The budgeted sales for Micro Miller company = $700,000,
Sales commissions of = 4%
The salary of sales manager = $80,000.
Now,
Since Budgeted Sales is $700,000
Then
sales commissions is calculated as follows:
Sales Commission=0.04*700000(A)= 28000
Thus,
Sales Manager's Salary(B) = $80,000
Hence,
The shipping expenses = 0.01*700000 = $7000
Miscellaneous selling expenses becomes
Fixed = 1000
Variable =3500 700000 * 0. 5 = 119500
The budgeted selling expenses on a flexible budget for April is $119,500.
The calculation is as follows:Sales commission $28,000 (4% of $700,000)
Sales manager salary $80,000
Shipping expenses $7,000 (1% of $700,000)
Miscellaneous selling expenses
Fixed $1,000
Variable $3,500 (0.5% of $700,000)
Budgeted selling expenses $119,500
Therefore we can conclude that The budgeted selling expenses on a flexible budget for April is $119,500.
Learn more: brainly.com/question/6201432
Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O’Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2016, O’Donnell invests a building worth $130,000 and equipment valued at $140,000 as well as $60,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances.
To entice O'Donnell to join this partnership, Reese draws up the following profit and loss agreement:
- O'Donnell will be credited annually with interest equal to 10 percent of the beginning capital balance for the year
- O'Donnell will also have added to his capital account 15 percent of partnership income each year (without regard for the preceding interest figure) or $7,000, whichever is larger. All remaining income is credited to Reese.
- Neither partner is allowed to withdraw funds from the partnership during 2013. Thereafter, each can draw $5,000 annually or 20 percent of the beginning capital balance for the year, whichever is larger.
The partnership reported a net loss of $8,000 during the first year of its operation. On January 1, 2014, Terri Dunn becomes a third partner in this business by contributing $10,000 cash to the partnership. Dunn receives a 20 percent share of the business's capital. The profit and loss agreement is altered as follows:
- O'Donnell is still entitled to (1) interest on his beginning capital balance as well as (2) the share of partnership income just specified.
- Any remaining profit or loss will be split on a 5:5 basis between Reese and Dunn, respectively.
Partnership income for 2014 is reported as $64,000. Each partner withdraws the full amount that is allowed. On January 1, 2015, Dunn becomes ill and sells her interest in the partnership (with the consent of the other two partners) to Judy Postner. Postner pays $75,000 directly to Dunn. Net income for 2015 is $64,000 with the partners again taking their full drawing allowance On January 1, 2016, Postner withdraws from the business for personal reasons. The articles of partnership state that any partner may leave the partnership at any time and is entitled to receive cash in an amount equal to the recorded capital balance at that time plus 10 percent
a. Prepare journal entries to record the preceding transactions on the assumption that the bonus (or no revaluation) method is used. Drawings need not be recorded, although the balances should be included in the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.)
b. Prepare journal entries to record the previous transactions on the assumption that the goodwill (or revaluation) method is used. Drawings need not be recorded, although the balances should be included in the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.)
In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 150 units at $7 on January 1, (2) 590 units at $8 on January 8, and (3) 890 units at $10 on January 29. M7-12 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under Periodic LIFO [LO 7-3] Assume 1,110 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under the LIFO. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.
Answer:
Goods available for sale = $14,670
Ending inventory = $9,470
Cost of goods sold = $5,200
Explanation:
As per the data given in the question,
Total units purchased = 150 + 590 + 890 = 1,630
Ending inventory = 1,110
Sales units = 1,630 units - 1,110 units = 520 units
Goods available for sale = 150 × $7 + 590 × $8 + 890 × $10
= $14,670
Ending inventory = 150 × $7 + 590 × $8 + 370 × $10
= $9,470
Cost of goods sold = $14,670 - $9,470
= $5,200
All of the following are arguments in favor of social responsibility except: Select one: a. Corporate action to cure social problems makes some government regulation of corporate activity unnecessary. b. Results of social action are difficult to measure in terms of the bottom line. c. Societal improvement is good for business. d. It is cheaper to prevent problems than to cure them.
Answer:
Option B
Explanation:
In simple words, Social accountability requires that companies will behave in a way that promotes community in order to increase the shareholder interest. lnvestors as well as customers looking for projects which are not really successful but also commit to the health of people and the ecosystem are becoming progressively crucial for public accountability.
Thus, from the above we can conclude that the correct option is B.
Social responsivity is the ethical framework that suggest that an individual has an obligation to work. Also to cooperate with the individuals and the organizations to work.
CSR is the corporate social responsibility is a good business sense is the responsibility of the business to take care and contribute to the economic development of the nation. Hence as a result of which the social actions are evaluated in the context of the bottom line.Hence the option B is correct.
Learn more about the arguments in favor of social responsibility.
brainly.com/question/14400613.
The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company.
Account Title Debits Credits
Cash $91,000
Accounts receivable 186,000
Inventory 298,000
Prepaid expenses 174,000
Equipment 346,000
Accumulated depreciation $123,000
Investments 166,000
Accounts payable 73,000
Interest payable 33,000
Deferred revenue 93,000
Income taxes payable 43,000
Notes payable 265,000
Allowance for uncollectible accounts 29,000
Common stock 413,000
Retained earnings 189,000
Totals $1,261,000 $1,261,000
Additional information:
1. Prepaid expenses include $146,000 paid on December 31, 2021, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.
2. Investments include $43,000 in Treasury bills purchased on November 30, 2021. The bills mature on January 30, 2022. The remaining $123,000 is an investment in equity securities that the company intends to sell in the next year.
3. Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less.
4. The notes payable account consists of the following:
a. a $53,000 note due in six months.
b. a $134,000 note due in six years.
c. a $78,000 note due in three annual installments of $26,000 each, with the next installment due August 31, 2022. The common stock account represents 413,000 shares of no par value common stock issued and outstanding. The corporation has 826,000 shares authorized.
Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2021.
Answer:
A balance sheet for Weismuller publishing for December 31 2021 was prepared and recorded in the explanation section below
Explanation:
Solution
COMPANY: WEISMULLER PUBLISHING Balance Sheet At December 31 2021 Assets
Current assets:
Cash and cash equivalents ($91,000 + $43000) $134000
Short term investments ($166,000 - $43000) $123000
The net accounts receivable ($186,000 =$29,000) $175,000
Inventory $298,000
Prepaid expense [174,000-(14600/2)] $101,000
The total current assets $813,000
Note: Kindly find an attached copy of the [art of the complete solution to this question below
Your client has $80,000 invested in stock A. She would like to build a two-stock portfolio by investing another $80,000 in either stock B or C. She wants a portfolio with an expected return of at least 15% and as low a risk as possible, the standard deviation must be no more than 25%. Expected Return Standard Deviation Correlation With A A 18% 30% 1.0 B 17% 25% 0.3 C 15% 15% 0.4_____
Answer: Please see below for answer
Explanation:
Expected Return Standard Deviation Correlation With A
A 18% 30% 1.0
B 17% 25% 0.3
C 15% 15% 0.4_____
Expected return of A (RA) = 18%
Expected return of B (RB) = 17%
Standard Deviation of A (σA) = 30%
Standard Deviation of B (σB) = 25%
Weight of A (WA) = 50% (Since equal amount of $80,000 is being invested)
Weight of B (WB) = 50%
Correlation = 0.3
Portfolio Returns = WARA + WBRB = (18%*50%) + (17%*50%) = 17.5%
Portfolio Standard Deviation = (WA2 * σA2 + WB2 * σB2 + 2*(WA)*(WB)*CorrelationAB* σA* σB)(1/2)
= [(50%2 X 30%2) + (50%2 X 25%2) + (2 X 50% X 50%X 0.3 X 30% X 25%)](1/2)
=0.0025 +0.015625+SQR 0.01125
=0.0025+0.015625+0.1061=0.1241= 12.4%
If Invested in Stock C
Expected return of A (RA) = 18%
Expected return of C (RC) = 15%
Standard Deviation of A (σA) = 30%
Standard Deviation of C (σC) = 15%
Weight of A (WA) = 50% (Since equal amount of $80,000 is Being invested)
Weight of C (WC) = 50%
Correlation = 0.4
Portfolio Returns = WARA + WCRC = (18%*50%) + (15%*50%) = 16.5%
Portfolio Standard Deviation = (WA2 * σA2 + WC2 * σC2 + 2*(WA)*(WC)*CorrelationAC* σA* σC)(1/2)
= [(50%²X 30%²) + (50%² X 15%²) + (2 X 50% X 50%X 0.4 X 30% X 15%)]^1/2
= 0.0025+0.005625+ SQR 0.009= 0.1029= 10.29%= 10.3%
The expected return and standard deviation if invested in Stock B is 17.5% and 12.4% while that of STOCK C is 16.5% and 10.2 % but the client wants expected return of at least 15% and at low risk as possible with standard deviation not more than 25%, it is advised that the client invest in stock C as the values obtained are more towards her choice.
Xion Co. budgets a selling price of $80 per unit, variable costs of $35 per unit, and total fixed costs of $270,000. During June, the company produced and sold 10,800 units and incurred actual variable costs of $351,000 and actual fixed costs of $285,000. Actual sales for June were $885,000. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)
Answer and Explanation:
The preparation of flexible budget report is shown below:-
Xion CO.
Flexible budget report
Flexible budget Actual results Variances Favorable/
Unfavorable
Sales $864,000 $885,000 $21,000 Favorable
(10,800 × $80)
(-) Variable
cost $378,000 $351,000 $27,000 Favorable
(10,800 × $35)
Contribution $486,000 $534,000 $48,000 Favorable
(-) Fixed cost $270,000 $285,000 $15,000 Unfavorable
Net income $216,000 $249,000 $33,000 Favorable
Discussion Questions What project management tasks should Kelvin perform before his next meeting? What change management tasks should Kelvin perform before his next meeting, and how do these tasks fit within the project management process? Had you been in Kelvin’s place, what would you have done differently to prepare for this meeting?
Answer:
The overview of that same given problem is outlined in the following portion on the explanation.
Explanation:
(1)...
Kelvin will organize a meeting that comprises each trustee of suspense to keep them informed of the mission design communicate, advise to involve all those who may be concerned about the undertaking. All due respect, identity management is the responsibility of everyone in the organization.
(2)...
Kelvin became evidently up to date in ventures. His entitlements with either the beginning of the explanation of his undertaking indicate that he organized without grabbing the task's approval from alternate collaborators.
His key priorities would be to construct a point-by-point business plan as well as assign portions of something to other selection makers. By splitting the task, Kelvin would have the freedom to focus on his project managing operation, whilst the corresponding chiefs might have become experts in interpreting the job, the sets of capabilities assigned to the execution of the task, the start and end deadlines of the contract, the calculation including its effort needed for both the completion costs as well as the identification of circumstances between as well as between chores.
(3)...
Reconsidering organizational change assignments seems to be certainly just something Kelvin requires to reconstitute already when he ends up going with his next conference.
Such adjustments that I will make comprise of revamping the framework of job breakup, as well as internal engagement before and after the development's initial stages. Mostly during the conference, he specifies the idea of his strategy, like:
Tags provided for activities. List among all-time limits. Description of weekly modifications It gets insulin resistance to its management strategy after the presentation.The Weigelt Corporation has three branch plants with excess production capacity. Fortunately, the corporation has a new product ready to begin production, and all three plants have this capability, so some of the excess capacity can be used in this way. This product can be made in 3 sizes (large, medium, and small) that yield a net unit profit of $420, $360, and $300, respectively. Plants 1, 2, and 3 have the excess capacity to produce 750, 900, and 450 units per day of this product, regardless of the size or combination of sizes involved.
The amount of available in-process storage space also imposes a limitation on the production rates of the new product. Plants 1, 2, and 3 have 13,000, 12,000, and 5,000 square feet of inprocess storage available for a day’s production of this product. Each unit of the large, medium, and small sizes produced per day requires 20, 15, and 12 square feet, respectively.
Sales forecasts indicate that if available, 900, 1200, and 750 units of the large, medium, and small sizes would be sold per day.
At each plant, some employees will need to be laid off unless most of the plant’s excess production capacity can be used to produce the new product. To avoid layoffs if possible, management has decided that the plants should use the same percentage of their excess capacity to produce the new product.
Management wishes to know how much of each size should be produced by each plant to maximize profit.
Required:
1. Formulate and solve a linear programming model for this mixed problem on a spreadsheet.
2. Express the model in algebraic form.
Answer:
Explanation:
Let xij be the number of units of size j product (j = L, M, S) produced at plant i (i = 1,
2, 3).
The objective is to maximize
Z = 420(x1L + x2L + x3L) + 360(x1M + x2M + x3M) + 300(x1S + x2S + x3S)
subject to the following constraints.
Capacity constraints:
x1L + x1M + x1S ≤ 750
x2L + x2M + x2S ≤ 900
x3L + x3M + x3S ≤ 450
Storage space constraints:
20x1L + 15x1M + 12x1S ≤ 13000
20x2L + 15x2M + 12x2S ≤ 12000
20x3L + 15x3M + 12x3S ≤ 5000
Same capacity percentage constraints:
900(x1L + x1M + x1S) − 750(x2L + x2M + x2S) = 0
450(x2L + x2M + x2S) − 900(x3L + x3M + x3S) = 0
Nonnegativity constraints:
All xij ≥ 0
On December 31, 2017, Berclair Inc. had 560 million shares of common stock and 5 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 168 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $1,050 million.
Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2017, for 30 million common shares at an exercise price of $56 per share. During 2018, the market price of the common shares averaged $70 per share.
Required:
a. Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2018.
Answer:
Basic Earnings Per Share = $1,44
Diluted Earnings Per Share = $1,38
Explanation:
Basic Earnings Per Share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Shares
Calculation of Earnings Attributable to Holders of Common Stock
Net income for the year ended December 31, 2018, $1,050,000,000
Less cumulative preferred stock dividend ($45,000,000)
Earnings Attributable to Holders of Common Stock $1,005,000,000
Calculation of Weighted Average Number of Common Shares
1 January Outstanding Common Shares 560,000,000
March 1 - Purchases (10/12×168,000,000) 140,000,000
October 1 - Sold (3/12×4,000,0000) (1,000,000)
Weighted Average Number of Common Shares 699,000,000
Basic Earnings Per Share = $1,005,000,000/699,000,000
= $1,44
Diluted Earnings Per Share = Adjusted Earnings Attributable to Holders of Common Stock / Adjusted Weighted Average Number of Common Shares
Calculation of Adjusted Weighted Average Number of Common Shares
Weighted Average Number of Common Shares (Basic) 699,000,000
Incentive Stock Options 30,000,000
Adjusted Weighted Average Number of Common Shares 729,000,000
Diluted Earnings Per Share = $1,005,000,000/ 729,000,000
= $1,38
A brown-eyed father and a green-eyed mother have a 25% chance of having a green-eyed child. What is the probability that, in a family of four children, three of them have green eyes?
a.0.421 875
c 0.011 718 75
b. 0046 875
d. 0.1875
Answer:t
Explanation:
Described below are certain transactions of Crane Company for 2021:
1. On May 10, the company purchased goods from Fox Company for $76,800, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18.
2. On June 1, the company purchased equipment for $94,800 from Rao Company, paying $33,600 in cash and giving a one-year, 9% note for the balance.
3. On September 30, the company discounted at 11% its $200,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $180,000.
Required:
(a) Prepare the journal entries necessary to record the transactions above using appropriate dates.
Answer and Explanation:
a. The journal entries are shown below:
On May 10
Merchandise inventory Dr $75,924 ($76,800 × 0.98)
To Account payable $75,924
(Being merchandise inventory is purchased on account)
For recording this we debited the merchandise inventory as it increased the assets and credited the account payable as it also increased the liabilities
On May 18
Account payable Dr
To Cash
(Being the cash paid is recorded)
For recording this we debited the account payable as it decreased the liabilities and credited the cash as it reduced the assets
2. On June 1
Equipment Dr $94,800
To cash Dr $33,600
To 9% Note payable $61,200
(Being the equipment is purchased on cash and note payable)
For recording this we debited the equipment as it increased the assets and credited the account payable and cash as it also increased the liabilities and reduced the assets
3. On Sep 30
Cash Dr $180,000
Discount on note payable $20,000
To Note payable $200,000
(Being the interest bearing note is recorded)
For recording this we debited the cash as it increased the assets and credited the note payable as it also increased the liabilities and the difference is debited to note payable
Nolte Co. has 4,800,000 shares of common stock outstanding on December 31, 2012. An additional 200,000 shares are issued on April 1, 2013, and 480,000 more on September 1. On October 1, Nolte issued $6,000,000 of 9% convertible bonds. Each $1,000 bond is convertible into 40 shares of common stock. No bonds have been converted. The number of shares to be used in computing basic earnings per share and diluted earnings per share on December 31, 2013 is Group of answer choices 5,110,000 and 5,110,000. 5,110,000 and 5,170,000. 5,110,000 and 5,350,000. 5,880,000 and 5,320,000.
Answer:
5,110,000 and 5,170,000.
Explanation:
earnings per share EPS = (net income - preferred dividends) / weighted average of outstanding shares
4,800,000 at the beginning of the year200,000 issued April 1 = 200,000 x 9/12 = 150,000480,000 issued September 1 = 480,000 x 4/12 = 160,000weighted average outstanding shares = 4,800,000 + 150,00 + 160,000 = 5,110,000
diluted shares = ($6,000,000 / $1,000) x 40 x 3/12 = 60,000
diluted EPS = (net income - preferred dividends) / (weighted average of outstanding shares + diluted shares)
weighted average of outstanding shares + diluted shares = 5,110,000 + 60,000 = 5,170,000 shares
7.The firm has an inventory period of 84.6 days, an accounts payable period of 43.2 days, and an accounts receivable period of 41.7 days. Management is considering an offer from their suppliers to pay within 10 days and receive a discount of 2 percent. If the new discount is taken, the accounts payable period is expected to decline by 30.4 days. What will be the new operating cycle given the change in the payables period
Answer: 126.3 days.
Explanation:
The Operating Cycle essentially refers to how long it takes a business to convert inventory to cash. The entire period between production, to selling to recovering money from Receivables is incorporated here.
The formula therefore is,
= Days Sales in inventory + Days Sales Receivables
= 84.6 + 41.7
= 126. 3 days
Determine whether each of the following events causes a shift of a curve or a movement along a curve in the short run. Indicate which curve is involved and the direction of the change. As a result of an increase in the value of the dollar relative to other currencies, American producers pay less in dollar terms for foreign steel, a major commodity used in production. This will cause a the aggregate curve to the .
Answer:
Check the explanation
Explanation:
Increase in value of dollar has made the foreign steel (a major commodity used in production) cheaper for American producers.
This will reduce the cost of production of American Producers and would increase their profit-margin.
This will induce US firms to produce more and therefore there will be increase in short-run aggregate supply.
So, the given scenario will involve short-run aggregate supply curve and would shift the curve to the right.
Kindly check the attached image below to see the required graph -
On January 1, 2019, a company issued $401,600 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $417,153 based on a 10% market interest rate. The effective-interest method of amortization is used. Rounding all calculations to the nearest whole dollar, what is the interest expense for the six-month period ending June 30, 2019?
Answer:
$ 20,857.65
Explanation:
The interest expense for the first interest expense is cash proceeds from the bond issuance multiplied by the 10% market interest rate adjusted for semiannual amount by multiplying by 6 months and dividing by 12 months.
Interest expense=cash proceeds*market interest rate*6/12
cash proceeds is $417,153
market interest rate is 10%
interest expense for the six-month period ending June 30 2019=$417,153*10%*6/12=$ 20,857.65
The first interest expense is closest to $ 20,857.65
A company uses the percent of receivables method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $ 382,000 debit Allowance for uncollectible accounts 570 credit Net Sales 870,000 credit All sales are made on credit. Based on past experience, the company estimates that 5% of receivables are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared
Answer:
$18,530
Explanation:
The computation of the amount debited to the bad debt expense is shown below:
= Account receivable × estimated uncollectible percentage - credit balance of allowance for uncollectible accounts
= $382,000 × 5% - $570
= $19,100 - $570
= $18,530
We simply applied the above formula so that the amount debited to bad debt expense could come
The production manager of a company, in an effort to gain a promotion, negotiated a new labor contract with the factory employees that required them to bear a greater percentage of benefit costs than before, thus bringing down the cost of direct labor to the company. Shortly afterward, several experienced and highly skilled workers resigned, and were replaced by new employees whose work was very slow during their training period. At the end of the quarter, the company's profits fell 10%. This would produce a(n) ________.
Answer:
Unfavorable Direct labor efficiency variance
Explanation:
Labour efficiency is what every organisation look forward to in order to increase output, quality and maximize profit. In this case, all of that dropped maybe as a result of new experience. For this quarter, the organisation have experience Unfavorable Direct Labor Efficiency Variance.
When I called about the cost of these items, it was implied that my total would only be $35.00
Answer:
Each Item Cost 11.6666667
Explanation:
35.00 / 3 = 11.6666667
So each item cost about 11.66 or 11.67
Which is a short-term consequence of making a late payment on your bill
Answer:
Which is a short-term consequence of making a late payment on your bill? There will be a late fee added to the bill.
The short term consequences are the effects experienced for a short time. The short term consequence of default in the bill payment is the addition of late fees.
What is a bill?The bill can be given as the statement regarding the money owned by the user for the goods and the services he uses.
The bill payment can be for the services such as electricity, water, food and many more. The short term consequence that can be related with the bill is one which can be resolved and not make the major loss to the individual.
The short term payment for the lack of paying the bill is the addition of the late fees.
Learn more about bill payment, here:
https://brainly.com/question/11297896
#SPJ2
Under the allowance method of accounting for uncollectible accounts, a. the cash realizable value of accounts receivable is greater before an account is written off than after it is written off. b. Bad Debts Expense is debited when a specific account is written off as uncollectible. c. the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off. d. Allowance for Doubtful Accounts is closed each year to Income Summary.
Answer:
c. the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off.
Explanation:
Under the allowance method of accounting for uncollectible accounts, the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off and bad debt expenses is debited.
This means that in the period in which an account previously written off is collected, the income is unaffected.
Also, under the allowance method of accounting, total assets will remain unchanged when a particular account is being written off.
Ahmed, a lawyer, sold his car to Carlos. Has an implied warranty of merchantability been created by this transaction? No, because Ahmed is not a merchant. Yes, because if the car is defective Carlos will have a right to return in to Ahmed. No, Ahmed has not implied so either orally or in written. Yes, because a car is "goods" and the Uniform Commercial Code applies to contracts for the sale of goods.
Answer:
A. No, because Ahmed is not a merchant.
Explanation:
Implied warranty of merchantability is a law in contract which states that when there is a transaction between a seller (the merchant), and a buyer, there is an unwritten guarantee from the seller, that the product meets up to the ordinary standards of care. This means that the goods must be fit to do what the merchant says it will do. Therefore, if the seller finds it defective, he could return it to the seller. and if the seller refuses to make a change, a legal case could be established. The merchant by law is a wholesaler or retailer, who sells goods in which he has expertise or special skills.
Ahmed in the question could be argued in court to not be a merchant of cars and as such, has no expertise with which he can make a guarantee for the car being sold to Carlos.
Which assertions about statement 1 and statement 2 is true? Statement 1: 10,000 bonds sold by Echo Corporation were bought by a variety of investors. If Echo received $10 million from the sale of these bonds, then bonds were more likely sold on the secondary market than on the primary market. Statement 2: Bonds issued by Foxtrot have a face value of $1,000 and pay annual coupons with the next coupon due in 1 year. If the price of the bond is greater than $1,000, then the bond’s coupon rate is more than its YTM.
Answer: E. Statement 1 is false and statement 2 is true.
Explanation:
Statement 1 is false because when bonds are sold in the secondary market, the issuing company does not get anything from it. That is because sales in the secondary market are between bond holders and those who would like to buy the bond. For the company to make money from a bond issue, they would have to issue it in the Primary Market where it would come directly from them.
Statement 2 is true because when the coupon rate of a bond is higher than it's YTM, it signals that the bond is a PREMIUM bond which means that it is selling at a rate above Par. It is a measure showing that the bond is not very risky therefore investors charge less on the bond than the coupon rate. If the Coupon rate was lower than the YTM that would mean that investors consider the bond risky and so are charging more to hold it and this would reduce the price of the bond below it's face value.
In the late 1990s, the United States experienced very high GDP growth, record low unemployment rates, and virtually nonexistent inflation. Based on the conclusions of the AD/AS model, this combination of good economic results can be explained by a __________.
a. rightward shift of the aggregate demand.
b. leftward shift of the aggregate demand.
c. rightward shift of the short- or long-run aggregate supply.
d. leftward shift of the short- or long-run aggregate supply.
Answer:
d. leftward shift of the short- or long-run aggregate supply.
Explanation:
A smaller labor force would usually lead to a reflection in the leftward shift in both short run aggregate supply and potential GDP ( gross domestic product) of the economy. What this means is it would lead to a lower level of equilibrium with GDP ( gross domestic product) and a higher price level.
Exercise 24-1 Payback period computation; uneven cash flows LO P1 Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 60,000 $ 40,000 $ 70,000 $ 125,000 $ 35,000 $ 330,000 Compute the payback period for this investment. (Cumulative net cash outflows must be entered with a minus sign. Round your Payback Period answer to 2 decimal place.)
Answer:
3.08 years
Explanation:
The computation of payback period is shown below:-
Payback period = Year up to which cumulative cash flow are negative + (Cumulative cash flow in period in A ÷ cash flow of immediately year succeeding the period in A )
Year Cash flow cumulative cash flow
0 ($180,000) ($180,000)
1 $60,000 ($120,000)
($180,000 - $60,000)
2 $40,000 ($80,000)
($120,000 - $40,000)
3 $70,000 ($10,000)
($80,000 - $70,000)
4 $125,000 $115,000
(it will be end here because it excess from here)
Now we will put it into formula
Pay back period = 3 + (10,000 ÷ 125,000)
= 3 + 0.08
= 3.08 years
Data collected from selected major metropolitan areas in the eastern United States show that 5% of individuals living within the city limits move to the suburbs during a one-year period, while 2% of individuals living in the suburbs move to the city during a one-year period.
Prepare the matrix of transition probabilities.
