On the statement of cash flows, the cash flows from operating activities section would include a. receipts from the issuance of common stock b. payments for cash dividends c. payment for interest on short-term notes payable d. payments for the purchase of investments

Answer:

A 'third party', is any entity that a company does business with. This may include suppliers, vendors, contract manufacturers, business partners and affiliates, brokers, distributors, resellers, and agents.

Answer:

Ritz Carlton hotel focuses on people.

Sony  Focuses on their products.

Explanation:

Ritz Carlton has created its leading brand by providing great ambiance to the visitors and its guest. One can dream of staying at such luxury hotel. They are famous for their hospitality of their guests. The hotel management believes on total quality management. It has set highest standard for themselves and strive to meet them by providing better and better service to its guests. The success of Ritz Carlton is mainly because they keep the comfort of their guests as their highest priority.

Sony has always been striving to serve its customer better. Millennial are the top brands that are considered in market. They are the organizations which capture major market share and are massive market segment. Sony has offered wide range of products to its customers. Their main focus is on their product features and its qualities.

Answer:

May 1

DR Cash $252

CR Service Revenue $252

(To record payment for services rendered)

Working

Cash = Net Service revenue

Net Service revenue = $280 * ( 1 - 10%)

= 280 * 90%

= $252

Answer:

A) Cash is debited for $294,000. and,

C) Common Stock is credited for $294,000.

Explanation:

When Shares are Issued for Cash, recognize the Assets of Cash (Debit) and also recognize an equity element - Common Stock (Credit).

Answer: c. $18,000 increase

Explanation:

Department margin was $100,000 in September.

October Margin = Sales - Variable Costs - Traceable Fixed Costs

= (2,000 *( 210 - 25 - 80 - 15) ) - 62,000

= (2,000 * 90) - 62,000

= $118,000

= October Margin - September Margin

= 118,000 - 100,000

= $18,000 increase

Answer:

17.89%

Explanation:

Calculation Determine the average rate of return on the equipment

Using this formula

Average rate of return =Avarage annual income /Average investment

Where,

Avarage annual income=Annual saving - Annual depreciation- Annual operating costs

Average investment= (Beginning costs + Residual value)÷2

Let plug in the formula

Average rate of return=$20,210 - ($85,000- $7,000)÷10 years-$4,130/($85,000+$7,000)÷2

Average rate of return=$20,210-($78,000÷10)-$4,180/($92,000)÷2

Average rate of return=$20,210-$7,800-$4,180/$46,000

Average rate of return=$8,230/$46,000

Average rate of return=0.1789*100

Average rate of return=17.89%

Therefore the average rate of return on the equipment will be 17.89%

Answer:

18%

Explanation:

This can be calculated as using the formula for calculating the average rate of return as follows:

Average rate of return = Average annual income / Average investment in equipment .................. (1)

To use equation (1), we first calculate the following:

Annual cost saving = $20,210

Annual depreciation = (Equipment cost - Residual value) / Useful number of years = ($85,000 - $7,000) / 10 = $7,800

Annual operating and energy costs = $4,130

Average annual income = Annual cost saving - Annual depreciation - Annual operating and energy costs = $20,210 - $7,800 - $4,130 = $8,280

Average investment in equipment = (Equipment cost + Residual value) / 2 = $46,000

Substituting the values for Average annual income and Average investment in equipment into equation (1), we have:

Average rate of return = $8,280 / $46,000 = 0.18, or 18%

Answer:

Loss on impairment of goodwill that should be recorded is $300,000

Explanation:

Carrying value of net identifiable assets   $5,740,000

Less: Fair value                                            $5,440,000

Loss on impairment of goodwill                $300,000

Answer:

True

Explanation:

Since, Federal reserve purchased long term MBS in order to pay the less market interest rate and this will cause a rise in the amount of income i.e fixed securities. Also, due to less market interest rate, the financing cost is less and at the same time interest spread is narrower as it provides more liquidity

Therefore the given statement is true

Answer:

Total Flexible Budgets  for 12,000, 15,000, and 18,000 units  is $ 556,000         $ 643,000 and  $830,000  

Explanation:

Steelcase Inc.

Assembly Department:

Steel per filing cabinet ............................................. 55 pounds

Direct labor per filing cabinet ...................................... 20 minutes

Supervisor salaries ................................................ $180,000 per month

Depreciation ...................................................... $28,000 per month

Direct labor rate................................................... $21 per hour

Steel cost ......................................................... $0.40 per pound

Steelcase Inc.

Flexible budget

For the month of August 2014.

Units:                                  12000            15000            18000

Steel for filing cabinet     660,000          825000         990,000 pounds

Steel cost                         $264,000         330,000        $ 396,000

Direct labor Hrs               4,000              5,000               6,000

Direct labor Cost             $84,000       $105,000             $ 126,000

Supervisor salaries      $180,000           $180,000         $180,000

Depreciation                 $28,000             $28,000           $28,000            

 Total                              $ 556,000         $ 643,000          $830,000  

First we find the Steel for filing cabinets in pounds . Then we multiply with the rate to find the steel cost.

Similarly we find the direct labor hours and then the direct labor cost.

We assume that the supervisor salaries and depreciation are fixed.

Answer:

The First Payment occurs on 31 December 2021 as :

Mortgage Payable $31,200 (debit)

Interest Expense $28,800 (debit)

Cash $60,000 (credit)

The Second Payment occurs on 31 December 2022 as :

Mortgage Payable $33,696 (debit)

Interest Expense $26,304 (debit)

Cash $60,000 (credit)

Explanation:

First prepare an amortization schedule using the following data concerning the mortgage note :

Hint : Determine the number of years, N of this bond.

PV = $360,000

PMT = - $60,000

P/Yr = 1

r = 8 %

FV = 0

N = ?

The length of the bond, N is 8.4969 or 9 years

The First Payment occurs on 31 December 2021 as :

Mortgage Payable $31,200 (debit)

Interest Expense $28,800 (debit)

Cash $60,000 (credit)

The Second Payment occurs on 31 December 2022 as :

Mortgage Payable $33,696 (debit)

Interest Expense $26,304 (debit)

Cash $60,000 (credit)

Answer:  the firm will have a temporary competitive advantage

Explanation: The firm in question would have a temporary competitive advantage. Competitive advantage describes something that places a company or business or a person above the competition such as value, rarity, difficult/costly-to-imitate amongst others. However, where a substitute is already in existence for such service, then the firm would have a temporary competitive advantage.

Answer: treasury bonds

Explanation:

The treasury bonds are typically debt securities for the government that have a long maturity period e.g ten years ane above.

If interest rates rise, the U.S. Government debt instruments that would show the greatest percentage drop in value is the treasury bonds because of its longer maturity period.

Answer:

Initial value of building = $4,050,000

Initial value of land = $2,700,000

Initial value of equipment = $2,250,000

Explanation:

The fair value of an asset refers to a unbiased estimate of the likely market price of the asset.

The initial value of a fixed asset refers to the amount of money that spent to acquire or create the asset.

The initial value of each asset from a group of asset can be calculated using the following formula:

Initial value of an asset = Lump-sum price * (FVA / TFV) ............ (1)

Where, from the questio;

Lump-sum price = $9,000,000

FVA = Fair value of a particular asset. From the question, we have:

Building fair value = $4,500,000

Land fair value = $3,000,000

Land fair value  = $2,500,000

TFV =Total fair value = Building fair value + Land fair value + Land fair value = $4,500,000 + $3,000,000 + $2,500,000 = $10,000,000

Substituting the values into equation (1), we can determine the initial value of each asset as follows:

Initial value of building = $9,000,000 * ($4,500,000 / $10,000,000) = $9,000,000 * 0.45 = $4,050,000

Initial value of land = $9,000,000 * ($3,000,000 / $10,000,000) = $9,000,000 * 0.30 = $2,700,000

Initial value of equipment = $9,000,000 * ($2,500,000 / $10,000,000) = $9,000,000 * 0.25 = $2,250,000

Answer:

Stock price = $53.28

Explanation:

DATA

Earnings = $1,480,000

Shares outstanding = 500,000

P/E ratio = 18

Stock price = ?

he firm's expected stock price for year 3 can be calculated by using Price earning ratio formula

Formula:

P/E ratio = Stock price / EPS

Stock price = P/E ratio x EPS

Stock price =  18 x $2.96(w)

Stock price = $53.28

Workings

EPS = Earning per share

EPS = Earning /Shares

EPS = $1,480,000 /500,000

EPS = $2.96

Answer: 2.58

Explanation:

Portfolio beta of 1.60 is weighted average of all the constituent betas.

US Treasury bills are riskless so beta is 0

Stock A has market risk so beta is 1.

1.60 = (0.16 * 0) + ( 0.36 * 1) + ( 0.48 * b)

1.60 = 0.36 + 0.48b

0.48b = 1.24

b = 2.58

Answer:

Adding $47 to the book balance.

Explanation:

The above is an example of transposition error, which is caused by substituting two or more sequential digits ; mistake would be corrected by adding $47 ($95 -$48) to the book balance.

Answer:

The correct answer will be "Expatriate".

Explanation:

Answer:

$7.60 per unit of output

Explanation:

Budgeted output units 51,000 units

Budgeted machine−hours 10,200 hours

Budgeted variable manufacturing overhead costs for 51,000 units $387,600

budgeted variable overhead cost per unit of output = $387,600 / 51,000 units = $7.60 per unit of output

In this case, the applied variable overhead rate = 35,750 units x $7.60 = $271,700, which would have been under-applied since the actual variable overhead costs were much higher, $328,900.

Answer:

The question is incomplete, below is a possible match of the complete question:

a company purchased property for a building site. the costs associated with the property were:

purchase price $175,00

real estate commisions $15,000

legal fees 800

expenses of clearing the land 2,000

expenses to remove old building 1,000

what portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?

Answer:

cost allocated to land = $193,800

cost allocated to new building = $0

Explanation:

The expenses associated with the ost of land purchase are all the necessary expenses made in the purchase of the land and in getting the land ready for use. These include legal fees, cost of clearing the land, cost of removing old structures etc. Therefore cost allocated to land is calculated as follows:

cost of land = purchase price + real estate commissions + legal fees + expenses of clearing the land + expenses to remove old building.

cost of land = 175,000 + 15,000 + 800 + 2,000 + 1,000 = $193,800

∴ cost of land = $193,800

cost of new building = $0

There is no transaction associated directly with setting up the new building, all the costs were associated with the acquisition of the land, hence the cost os the new building is $0

So starting out they purchase your equipment with a promissory note. That promissory note is Debited to your accounts receivable for the amount of sales price (658,000) + both sales & local taxes. 6%+1.5%= 7.5% so... 1+ (7.5%*658,000)=  $707,350

then your sales tax payable is credited like this 7.5%*658,000= $49,350

and of course credit, the sales price for $658,000

Explanation:

Good luck!

#JmackTheInstructor

Answer:

Income Statement Year Ending 2014

Sales revenue                      $360,000

Cost of goods sold               $150,000

Gross profit                           $210,000

Fixed costs                             $42,900

Selling, general, and

administrative expenses      $27,200

Depreciation                          $45,900

EBIT                                         $94,000

Interest expense                     $18,100

Taxable income                    $  75,900

Taxes                                     $ 30,360

Net income                          $  45,540

Find the accumulated depreciation for 2014 first.

The accumulated depreciation for 2014 is:_$45,900____(Round to the nearest dollar.)

Explanation:

A company's income statement is one of the three financial statements prepared by the entity at the end of its fiscal period.  The statement compares the company's revenue with the expenses.  After deducting the total expenses from the total revenue, the net income or loss is obtained.  But before arriving at the net income or loss, there are other profit points that are usually calculated.  The first is the gross profit, which is the difference between the sales revenue and the cost of goods sold.  It shows the ability of the management to generate enough revenue to cover the cost of goods sold and make a profit from its trading or primary activities.

The next profit point is the Earnings before Interests and Taxes (EBIT).  This is an important index for checking the financial performance of a company.  The next is the Taxable Income on which the tax rate is determined and paid to government as Company Income Tax.  After deducting the tax expense from the pre-tax income, the final profit point is the After-Tax Income or the Net Income.  This determines the dividends policy and the share of retained earnings of the entity.

Answer:

1)

a. Raw materials purchased for cash, $170,000.

Dr Materials inventory 170,000

   Cr Cash 170,000

b. Raw materials requisitioned for use in production, $141,000 (materials costing $121,000 were charged directly to jobs; the remaining materials were indirect).

Dr Work in process: direct materials 121,000

Dr Manufacturing overhead 20,000

    Cr Materials inventory 141,000

c. Costs for employee services were incurred as follows:

Dr Work in process: direct labor 156,000

Dr Manufacturing overhead 185,900

Dr Sales salaries expense 22,000

Dr Administrative salaries expense 50,000

    Cr Cash 413,900

d. Rent for the year was $18,800 ($13,600 of this amount related to factory operations, and the remainder related to selling)

Dr Manufacturing overhead 13,600

Dr Rent expense 5,200

    Cr Cash 18,800

e.Utility costs incurred in the factory, $16,000.

Dr Manufacturing overhead 16,000

    Cr Cash 16,000

f. Advertising costs incurred, $13,000.

Dr Advertising expenses 13,000

    Cr Cash 13,000

g. Depreciation recorded on equipment, $21,000. ($15,000 of this amount was on equipment used in factory operations; the remaining $6,000 was on equipment used in selling and administrative activities.)

Dr Manufacturing overhead 15,000

Dr Depreciation expense 6,000

    Cr Accumulated depreciation: manufacturing equipment 15,000

    Cr Accumulated depreciation: office equipment 6,000

h. Manufacturing overhead cost was applied to jobs, $?

Dr Work in process 265,200

     Cr Manufacturing overhead 265,200 (170% of direct labor)

i. Goods that had cost $226,000 to manufacture according to their job cost sheets were completed.

Dr Finished goods inventory 226,000

    Cr Work in process 226,000

j. Sales for the year totaled $514,000. The total cost to manufacture these goods according to their job cost sheets was $220,000.

Dr Cash 514,000

    Cr Sales revenue 514,000

Dr Cost of goods sold 220,000

    Cr Finished goods inventory 220,000

2)

Dr Manufacturing overhead ($265,200 - $250,500) 14,700

    Cr Cost of goods sold 14,700

3) Gold Nest Company

Income Statement

Sales revenue                                                                        $514,000

- Cost of goods sold                                                             -$205,300

Gross profit                                                                             $308,700

Operating expenses:

Operating profit                                                                        $212,500

1. The preparation of journal entries to record the transactions for Gold Nest Company of Guandong, China, is as as follows:

a. Debit Raw materials $170,000

Credit Cash $170,000

b. Debit Work in Process $121,000

Debit Manufacturing Overhead $20,000

Credit Raw materials $141,000

c. Debit Work in Process $156,000

Debit Manufacturing Overhead $185,900

Credit Payroll Expenses $341,900

Debit Selling and Administrative Expenses $22,000

Credit Sales commissions $22,000

Debit Selling and Administrative Expenses $50,000

Credit Administrative salaries $50,000

d. Debit Manufacturing Overhead $13,600

Debit Selling and Administrative Expenses $5,200

Credit Rent Expenses $18,800

e. Debit Manufacturing Overhead $16,000

Credit Utilities Expense $16,000

f. Debit Selling and Administrative Expenses $13,000

Advertising costs $13,000

g. Debit Manufacturing Overhead $15,000

Debit Selling and Administrative Expenses $6,000

Credit Depreciation Expenses $21,000

h. Debit Work in Process $265,200

Credit Manufacturing Overhead (Applied) $265,200 ($1.70 x $156,000)

i. Debit Finished Goods Inventory $226,000

Credit Work in Process $226,000

j. Debit Cash $514,000

Credit Sales Revenue $514,000

j. Debit Cost of goods sold $220,000

Credit Finished Goods Inventory $220,000

2. The journal entry to close the balance in the Manufacturing Overhead account to the Cost of goods sold is as follows:

Debit Manufacturing Overhead $14,700

Credit Cost of goods sold $14,700

3. Gold Nest Company

for the year ended December 31

Sales Revenue            $514,000

Cost of goods sold      205,300

Gross profit               $308,700

Selling and Administrative Expenses:

Sales commission       $22,000

Administrative salaries 50,000

Rent Expenses                5,200

Advertising Expenses   13,000

Depreciation Expenses 6,000

Total selling/admin.  $96,200

Net income             $212,500

Estimated manufacturing overhead = $76,500

Estimated direct labor dollars = $45,000

Predetermined overhead rate = $1.70 ($76,500/$45,000)

Raw materials = $10,200

Work in process = $4,200

Finished goods = $8,200

a. Raw materials $170,000 Cash $170,000

b. Work in Process $121,000 Manufacturing Overhead $20,000 Raw materials $141,000

c. Work in Process $156,000 Manufacturing Overhead $185,900 Payroll Expenses $341,900

Selling and Administrative Expenses $22,000 Sales commissions $22,000

Selling and Administrative Expenses $50,000 Administrative salaries $50,000

d. Manufacturing Overhead $13,600 Selling and Administrative Expenses $5,200 Rent Expenses $18,800

e. Manufacturing Overhead $16,000 Utilities Expense $16,000

f. Selling and Administrative Expenses $13,000 Advertising costs $13,000

g. Manufacturing Overhead $15,000 Selling and Administrative Expenses $6,000 Depreciation Expenses $21,000

h. Work in Process $265,200 Manufacturing Overhead (Applied) $265,200 ($1.70 x $156,000)

i. Finished Goods Inventory $226,000 Work in Process $226,000

j. Cash $514,000 Sales Revenue $514,000

j. Cost of goods sold $220,000 Finished Goods Inventory $220,000

2. Manufacturing Overhead $14,700 Cost of goods sold $14,700

b. Raw materials                   $20,000

c. Payroll Expenses            $185,900

d. Rent Expenses                 $13,600

e. Utilities Expense              $16,000

g. Depreciation Expenses  $15,000

h. Work in Process                                 $265,200

Cost of goods sold (Over-applied

overhead)                          $14,700

Finished goods                                   $220,000

Over-applied manufacturing overhead (14,700)

Adjusted cost of goods sold           $205,300

A job-order costing system is a costing system that tracks the costs and revenues according to jobs, with jobs allocated job numbers.  It is unlike process costing, which tracks jobs for each process in order to determine the unit costs instead of per job.

Learn more about accounting costs under job-order costing system at https://brainly.com/question/24516871

Complete Question:

Crossfire Company segments its business into two regions - East and West.  The company prepared a contribution format segmented income statement as shown below:

                                                Total Company         East              West

Sales                                            $900,000        $600,000       $300,000

Variable Expenses                        675,000           480,000          195,000

Contribution margin                     225,000            120,000          105,000

Traceable Fixed Expenses            141,000              50,000            91,000

Segment Margin                          $84,000            $70,000          $14,000

Common Fixed Expenses            59,000

Net Operating Income               $25,000

Instructions: (As given).

Answer:

1. Computation of the companywide break-even point in dollar sales:

Break-even point in dollar sales

= Sales = Total costs

Sales = $816,000

Total costs = Variable costs + Traceable fixed costs

= $675,000 + $141,000

= $816,000

2. Computation of the break-even point in dollar sales for the East region:

Break-even point in dollar sales

= Sales = Total costs

= $530,000

Total costs = $530,000 ($480,000 + 50,000)

3. Computation of the break-even point in dollar sales for the West region:

Break-even point in dollar sales

= Sales = Total costs

= $286,000

Total costs = $286,000 ($195,000 + 91,000)

4. A new segmented income statement based on the break-even dollar sales that are computed in requirements 2 and 3:

                                                Total Company         East              West

Sales                                             $816,000        $530,000       $286,000

Variable Expenses                        675,000           480,000          195,000

Contribution margin                       141,000             50,000          105,000

Traceable Fixed Expenses            141,000             50,000            91,000

Segment Margin                                $0                     $0                   $0

Common Fixed Expenses            59,000

Net Operating Income/(loss)    ($59,000)

Crossfire's net operating income (loss) in the new segmented income statement is: $59,000

5. I think that Crossfire should allocate the common fixed expenses to the East and West regions when computing the break-even points for each region.

This ensures that Crossfire does not run into net operating loss, company-wide.  The segmented sales revenues for the regions can be used to allocate the common fixed expenses.  Other suitable bases are traceable fixed expense, number of sales and administrative staff, or activity cost pools, using activity-based costing technique.

Explanation:

a) Break-even point in sales dollars is the sales point at which Crossfire's sales revenue will be equal to the total costs.  At this point, Crossfire will not make any profit or incur any loss.

Answer:

PI for the first project = 1 + ($5,673.93 / 87,000) = 1.065

PI for the second project = 1 + ($5,561.23 / $55,000) = 1.101

b. the second project should be chosen because the PI is higher

NPV for 1 = $5,673.93

NPV for 2 =   $5,561.23

Explanation:

profitability index  = 1 + (NPV / Initial investment)

Net present value is the present value of after tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator

for the first project

Cash flow in year 0 = –$87,000

Cash flow in year 1 = 36,900

Cash flow in year 2 = 47,000

Cash flow in year 3 =  27,000

I = 10%

NPV = $5,673.93

for the second project

Cash flow in year 0 = –$55,000

Cash flow in year 1 = 11,700

Cash flow in year 2 =  34,500

Cash flow in year 3 = 28,500

I = 10%

NPV = $5,561.23  

PI for the first project = 1 + ($5,673.93 / 87,000) = 1.065

PI for the second project = 1 + ($5,561.23 / $55,000) = 1.101

b. the second project should be chosen because the PI is higher

To find the NPV 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 NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

Answer: C. $0

Explanation:

When including initial costs in a project's cash-flow, the relevant costs are those that henceforth will be spent on the project. Sunk costs are not to be included because they have already been incurred and cannot be recovered.

Research and Development costs have already been incurred and so are sunk costs. Hence they are not to be included in the initial cash-flow for the project.

The amount of the cost that should be included in the initial (t = 0) cash flow for Ping Kings' Project is D. $300,000.

This is a cash outlay (outflow).  It bears a negative value.  The initial cash flow cannot be $120,000, $180,000, or $0 because of Ping's tax rate of 40%. Under the FASB, Research and Development costs are capitalized.

Secondly, tax is not applied on capital investment but its net income.

Options for this question include:

A. $120,000

B. $180,000

C. $0

D. $300,000

Learn more: https://brainly.com/question/18958117

Answer:

C. Fixed rules.

Explanation:

This is simply a policy that is seen to be a monetary or in some cases fiscal; they are said to be automated in most of its cases and are based on the criteria that are predetermined.

In most cases, these policies are seen to be binding and also categorically constrain officials' policy choices based on certain predetermined criteria to direct them toward serving the public interest.

Many cases by policymakers made this policy to be put in place because most of them generally cannot bind their own future choices, also fixed policy rules usually have to be enforced by some kind of higher authority in order to be binding etc.

Answer:

EPS = 2.2

Explanation:

Earning per share is the amount due to each of the ordinary shareholders after settlement of interest due on loans , preferred dividends and tax.

Earnings per share (EPS) = Earnings attributable to ordinary shareholders ÷ Units of shares

Where ;

Earnings attributable to ordinary shareholders = Net income - Preferred dividends

EPS = $770,000 - 0 ÷ 350,000 shares

EPS = $2.2

Answer: Inflation

Explanation:

Time series data are refer to those taken over a period of years with a minimum of four years being satisfactory. The data shown will have variations that fall under four major components being;

Only Inflation does not fall here.

Answer:

Fixed Time Period Model

Explanation:

a fixed time period model ensures that level of inventory is checked regularly for all items. therefore from the question, if the vending company checks each machine and fills it with various product the inventory method is Fixed Time Period Model.

Answer: e. $52,700

Explanation:

Cash Dividend to be paid = Cash dividends payable at the beginning of the year + Cash dividends declared for the year - Cash dividends payable at the end of the year

= 12,600 + 55,000 - 14,900

= $52,700