Answer:
Results are below.
Explanation:
To calculate the purchase for each month, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases January:
Production= 130,000
Desired ending inventory= (170,000*0.4)= 68,000
Beginning inventory= (40,000)
Total purchase in units= 158,000
Total purchase cost= 158,000*6= $948,000
Purchases February:
Production= 170,000
Desired ending inventory= (190,000*0.4)= 76,000
Beginning inventory= (68,000)
Total purchase in units= 178,000
Total purchase cost= 178,000*6= $1,068,000
Purchases March:
Production= 190,000
Desired ending inventory= (200,000*0.4)= 80,000
Beginning inventory= (76,000)
Total purchase in units= 194,000
Total purchase cost= 194,000*6= $1,164,000
Purchases April:
Production= 200,000
Desired ending inventory= (180,000*0.4)= 72,000
Beginning inventory= (80,000)
Total purchase in units= 192,000
Total purchase cost= 192,000*6= $1,152,000
Purchases May:
Production= 180,000
Desired ending inventory= (250,000*0.4)= 100,000
Beginning inventory= (72,000)
Total purchase in units= 208,000
Total purchase cost= 208,000*6= $1,248,000
The new office supply discounter, Paper Clips, Etc. (PCE), sells a certain type of ergonomically correct office chair. The annual holding cost per unit is $25, annual demand is 180,000 chairs, and the ordering cost is $150 per order. The lead time is 5 days. Because demand is variable (standard deviation of daily demand is 30 chairs), PCE has decided to establish a customer service level of 96%. The store is open 300 days per year.
Required:
a. What is the optimal order quantity?
b. What is the safety stock?
c. What is the reorder point?
d. What is the optimal annual total inventory cost?
Solution :
Given data:
Annual demand, D = 180,000 chairs
Ordering cost, F = $ 150 per order
Annual holding cost per unit, C = $25
Lead time of order, L = 5 days
Standard deviation of order during lead time = 30
a). The optimal order quantity
[tex]$=\sqrt{\frac{2FD}{C}}$[/tex]
[tex]$=\sqrt{\frac{2\times 150 \times 180,000 }{25}}$[/tex]
= 1469.69
= 1470 (rounding off)
b). The Z value of the customer service of 90%,
i.e., the probability of 0.90 as per normal distribution table = 1.29
∴ Safety stock = Z value x standard deviation of order during lead time
= 1.29 x 30
= 38.7
= 39 (rounding off)
c). The reorder point
[tex]= \text{Average demand per day} x \text{Demand lead time (day) + Safety stock}[/tex]
[tex]$=\frac{\text{annual demand}}{\text{300 days}} \times \text{ Demand Lead time (days) + Safety stock}$[/tex]
[tex]$=\frac{180,000}{300} \times 5 + 39$[/tex]
= 3039
d). The optimal annual total inventory cost
[tex]$\text{= Annual ordering cost + Annual Inventory carrying cost}$[/tex]
[tex]$\text{= Number of orders} \times \text{Ordering cost + Average inventory} \times }$[/tex] [tex]$\text{Inventory holding cost per unit per year}$[/tex]
[tex]$=\frac{\text{annual demand}}{\text{optimum order quantity}} \times \text{ordering cost+}\frac{\text{optimum ordering cost}}{2}\times C$[/tex]
[tex]$=\frac{180,000}{1470} \times 150 + \frac{1470}{2} \times 25$[/tex]
= 18367.34 + 18375
= $ 36,742.34
State whether the following statement is true or false: Too many slow moving, high value goods into
result in too much cash tied up in inventory
Answer: True
Explanation:
High value goods were purchased with a lot of cash and if they are slow moving, the company will not be able to sell them fast enough and realized the cash that was spent to be able to purchase them. A typical example of such inventory are expensive motor vehicles.
The ideal type of inventory is one that is fast moving and high value because it gives a business a higher amount of cash at a higher frequency.
What is the loan balance (in dollars) after the third payment, of a 5 year loan of $100,000 with an APR of 10% and annual payments
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $7 per hour and capital is rented at $11 per hour. If the marginal product of labor is 65 units of output per hour and the marginal product of capital is 55 units of output per hour, should the firm increase, decrease, or leave unchanged the amount of capital used in its production process
Answer:
leave unchanged
Explanation:
because it doe snore jobs then the other one
Even though most corporate bonds in the united states make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. suppose a german company issues a bond with a par value of 1000 euros, 23 years to maturity, and a coupon rate of 5.8 percent paid annually.
Required:
If the yield to maturity is 7.5 percent, what is the current price of the bond?
Answer:
Bond Price= 816.29
Explanation:
Giving the following information:
YTM= 0.075
Coupon= 0.058*1,000= 58
Years to maturity= 23 years
Face value= 1,000
To calculate the price of the bond, we need to use the following formula:
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 58*{[1 - (1.075^-23)] / 0.075} + [1,000/(1.075^23)]
Bond Price= 626.79 + 189.5
Bond Price= 816.29
On April 2, Rolex SA sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $24,000 of sales was received on April 8 and the remaining payment on $16,000 of sales was received on April 27. Assuming Rolex uses the net method of accounting for sales discounts, the entry recorded on April 27 would include a:_____.
a. Debit to cash for $15,840.
b. Debit to revenue for $40,000.
c. Credit to sales discounts forfeited for $160.
d. Debit to accounts receivable for $400.
Answer:
c. Credit to sales discounts forfeited for $160.
Explanation:
Based on the information given the entry recorded on April 27 would include a: CREDIT TO SALES DISCOUNTS FORFEITED FOR $160
($16,000*1%=$160)
The journal entries are:
A. Dr Accounts receivable $160
Cr Sales Discount forfeited $160
B. Dr Cash $16,000
Cr Accounts receivable $16,000
Jeff owns an American put option on 100 shares of ABC stock. The option has a strike price of $32.50 and a September expiration date. The stock has recently been declining in value, currently sells for $27.65 per share, and is expected to continue declining in value. Ignore all costs and taxes. If today is Wednesday, August 14, he: Group of answer choices
Answer: b. can exercise his option and earn a profit.
Explanation:
Put options make a profit when the underlying stock sells for less than the strike price of the option. Furthermore, an American put option can be sold at any time before the option expires.
Jeff can therefore exercise the put option and make a profit today of:
= (32.50 - 27.65) * 100 shares
= $485.00
Cartwell Inc. makes picture frames which are sold in a local retail store and through various websites.
$ 19,500 4,900 WOod for frames Rent for retail store Depreciation on office equipment Assembly worker wages CEO's salary Glue and nails 780 2,950 4,450 1,150 2,400 7,800 1,550 Online sales commissions Glass for frames Depreciation on factory equipment Factory utilities Stain for frames 850 900 Required:
1. Determine the cost of direct material
2. Determine the cost of direct labor
3. Determine the cost of manufacturing overhead.
4. Determine the total manufacturing cost
5. Determine the total period cost.
6. Determine the total variable cost.
7. Determine the total fixed cost.
8. Determine the total prime cost.
9. Determine the total conversion cost
Answer:
Cartwell Inc.
1. Cost of direct material = $27,300
2. Cost of direct labor = $2,950
3. Cost of manufacturing overhead = $4,450
4. Total manufacturing cost = $34,700
5. Total period costs = $12,530
6. Total variable cost = $34,700
7. Total fixed cost = $12,530
8. Total prime cost = $30,250
9. Total conversion cost = $7,400
Explanation:
a) Data and Calculations:
Wood for frames $ 19,500
Rent for retail store 4,900
Depreciation on office equipment 780
Assembly worker wages 2,950
CEO's salary 4,450
Glue and nails 1,150
Online sales commissions 2,400
Glass for frames 7,800
Depreciation on factory equipment 1,550
Factory utilities 850
Stain for frames 900
1. Cost of direct materials:
Wood for frames $ 19,500
Glass for frames 7,800
Cost of direct materials = $27,300
2. Cost of direct labor:
Assembly worker wages $2,950
3. Cost of manufacturing overhead:
Glue and nails $1,150
Depreciation on factory equipment 1,550
Factory utilities 850
Stain for frames 900
Cost of manufacturing overhead = $4,450
4. Total manufacturing cost:
Cost of direct materials = $27,300
Cost of direct labor = 2,950
Manufacturing overhead = 4,450
Total manufacturing cost = $34,700
5. Total period costs:
Rent for retail store 4,900
Depreciation on office equipment 780
CEO's salary 4,450
Online sales commissions 2,400
Total period costs = $12,530
6. Total variable cost:
Wood for frames $ 19,500
Assembly worker wages 2,950
Glue and nails 1,150
Online sales commissions 2,400
Glass for frames 7,800
Stain for frames 900
Total variable cost = $34,700
7. Total fixed cost:
Rent for retail store 4,900
Depreciation on office equipment 780
CEO's salary 4,450
Depreciation on factory equipment 1,550
Factory utilities 850
Total fixed cost = $12,530
8. Total prime cost:
Cost of direct materials = $27,300
Cost of direct labor = 2,950
Total prime cost = $30,250
9. Total conversion cost:
Cost of direct labor = 2,950
Manufacturing overhead = 4,450
Total conversion cost = $7,400
Several years ago, Judy purchased a $1,000 par value corporate bond in the secondary market for $965. Although the bond still has several years until maturity, similar bonds in the marketplace are now selling at a premium with a market price of $1,065. If Judy were to sell her bond, how much, if any, would be treated as a capital gain
Answer: $100
Explanation:
The capita gain is simply the difference between the price that Judy bough the bond at and the price of the bond should Judy decide to sell it now.
Capital gain is therefore:
= Selling price - Buying price
= 1,065 - 965
= $100
You are a farmer who is putting away bales of hay for the winter months. Each bale is 3 feet long, 2 feet wide, and 1.5
feet thick. The bales of hay are stacked in storage bins 12 feet long, 8 feet wide, and 6 feet deep.
What is the minimum number of bins needed for 350 bales of hay?
Answer: 5.46 bins would be needed, so 6 bins for 350 bales of hay.
Explanation: Bales 350 bales have 9³ft each L=3×W=2×H=1.5 totals 3150³ft Bins L 12ft × W 8ft × H 6ft have 546³ft each 3150³ft ÷ 546³ft = 5.46875you can't buy half a bin, you would need 6 binsAt the beginning of the most recent month's operations, finished goods inventory was $30,000. The cost of goods manufactured was $326,000 and ending finished goods inventory was $42,000. What was the cost of goods sold for the month?
Answer:
$314,000
Explanation:
Calculation to determine the cost of goods sold for the month
Finished goods inventory, beginning $30,000
Add: Cost of goods manufactured $326,000
Goods available for sales $356,000
($30,000+$326,000)
Less Finished goods inventory, Ending $42,000
Cost of goods sold $314,000
($356,000-$42,000)
Therefore the cost of goods sold for the month is $314,000
Zebra Company sells a segment of its operations at a loss. Zebra has not previously experienced such an event and does not expect to again. The loss from the disposal of the segment should be reported in the income statement as: Select one: A. A separate amount in comprehensive income B. A separate amount in net income from continuing operations C. A separate amount in a discontinued operations section D. As part of cost of goods sold
Answer:
C. A separate amount in a discontinued operations section
Explanation:
Since in the given situation it is mentioned that zebra co sells the segment at a loss so this loss from the sale of the segment that should be reported in the income statement as the distinct amount in the discontinued operating section as the same below the income from continuing operations
Hence, the correct option is c.
Answer:
The answer is "Option C".
Explanation:
The discontinued operations are parts of a company's core business or product line that have been sold or shut down and thus are reported separately on the financial statements from ongoing operations. As a result, any loss from the sale of the segment should indeed be reported as a separate amount inside the income statement's discontinued operations column.
Company A, a British manufacturer, wishes to borrow US dollars at a fixed rate of interest. Company B, a US multinational, wishes to borrow sterling at a fixed rate of interest. They have been quoted the following rates per annum ( adjusted for differential tax effects):
Sterling US dollars
Company A 11.0% 7.0%
Company B 10.6% 6.2%
Design a swap that will net a bank, acting as intermediary, 10 basis points per annum and that will produce a gain of 15 basis points per annum for each of the two companies.
Answer:
Company b 11.0 % 7.o%
Explanation:
Is this ok
How does the policy define the meaning of insurance
Explanation:
the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay.
A stock has an average expected return of 9.7 percent for the next year. The beta of the stock is 1.34. The T-Bill rate is 5.2% and the T-Bond rate is 3%. What is the market risk premium
Answer:
3.4%
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
9.7 = 5.2 + 1.34(x - 5.2)
9.7 - 5.2 = 1.34(x - 5.2)
3.35 = x - 5.2
Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 17 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 8.0 percent, what is the present value of this liability
Answer:
$202,701,713.58
Explanation:
Present value of this liability = Value of liability / ((1+r)^t)
Present value of this liability = $750 million / ((1+0.08)^17)
Present value of this liability = $750 million / (1.08)^17
Present value of this liability = $750 million / 3.7000180548
Present value of this liability = $202,701,713.5840815
Present value of this liability = $202,701,713.58
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm’s direct labor includes salaries of consultants that work at the client’s job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 50,000 direct labor-hours would be required for the period’s estimated level of client service. The company also estimated $225,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm’s actual overhead cost for the year was $238,100 and its actual total direct labor was 53,100 hours. Required: 1. Compute the predetermined overhead rate. 2. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job: Direct materials $ 44,850 Direct labor cost $ 28,200 Direct labor hours worked 200 Compute the total job cost for the Xavier Company engagement.
Answer and Explanation:
The computation is shown below;
1. The predetermined overhead rate is
= $0.50 + ($225,000 ÷ 50,000 direct labor hours)
= $.50 + $4.5
= $5
2. The total job cost is
= $44,850 + $28,200 + 200 × $5
= $44,850 + $28,200 + $1,000
= $74,050
So in this way these can be calculated
mention any four components of the marketing communication policy
Answer:
Mix advertising, public relations, sales promotion and personal selling
The following information was available from the inventory records of Rich Company for January:
Units Unit Cost Total Cost
Balance at January 1 9,000 $9.77 $87,930
Purchases:
January 6 6,000 10.30 61,800
January 26 8,100 10.71 86,751
Sales:
January 7 (7,500)
January 31 (11,100)
Balance at January 31 4,500
A. Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
a. $47,270.
b. $46,067.
c. $46,170.
d. $46,620.
B. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar?
a. $47,270.
b. $46,067.
c. $46,170.
d. $46,620.
Please EXPLAIN answer for a thumps-up. I'm tried of wrong answers, please don't answer it unless you are 100% sure.
Answer:
A. The correct option is b. $46,067.
B. The correct option is d. $46,620.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answers is now given as follows:
A. Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
Note: See part A of the attached excel file for the calculation of the of units and cost of goods available for sale.
Since Rich does not maintain perpetual inventory records, this implies that this is a periodic inventory system. And update to inventory in a periodic inventory system are made on a regular basis, such as monthly, quarterly, etc.
From the part A attached excel file, we have:
Units of goods available for sale = 23,100
Cost of goods available for sales = $236,481
Weighted-average cost per unit = Cost of goods available for sales / Units of goods available for sale = $236,481 / 23,100 = $10.2372727272727
Inventory at January 31 = Units of inventory balance at January 31 * Weighted-average cost per unit = 4,500 * $10.2372727272727 = $46,068
From the options the closest one is b. $46,067. Therefore, the inventory at January 31 is $46,067 and the correct option is b. $46,067.
B. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar?
Note: See part B of the attached excel file for the calculation of the inventory at January 31 (in bold red color).
Under Perpetual Inventory system, the inventory is updated whenever a purchase or sale is made. It's a procedure that happens in real time.
In the Part B of the attached excel file, the following rates in light red color are made as follows:
Rate on January 6 = ($87,930 + $61,800) / 15,000 = $9.98 per unit
Rate on January 26 = ($74,865 + 86,751) / 15,600 = $10.36 per unit
From the part B attached excel file, we have:
Inventory at January 31 = $46,620.
Therefore, the correct option is d. $46,620.
What is the present value of a 10-year annuity of $3,000 per period in which payments come at the beginning of each period
Answer: $18984.9
Explanation:
Your question isn't complete as you didn't give the interest rate. Let's assume that the interest rate is 12%.
Therefore, the present value will be:
= 3000 + 3000[1 - (1 + 0.12)^-10+1] / 0.12
= 3000 + (3000 × 5.3283)
= 3000 + 15984.9
= 18984.9
Therefore, the present value is $18984.9
The Prakash Estate has equal income beneficiaries Sam and Janet. As allowed by the terms of the will, the estate makes no income distributions during the current tax year. The estate’s personal exemption is:______________
a. $0.
b. $100.
c. $300.
d. $600.
e. The exemption depends on the amount of taxable income of the estate.
Answer:
d. $600
Explanation:
The real estate owners are allowed personal exemption of up to $600. Prakash Estate is also entitled to for personal exemption in current tax year. The estate has not made any income distribution in the current year and all the partners have equal income setup in the estate.
Here is some price information on Fincorp stock. Suppose first that Fincorp trades in a dealer market. Bid Asked 55.25 55.50 a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? (Round your answer to 2 decimal places.) b. Suppose you have submitted an order to sell at market. At what price will your trade be executed? (Round your answer to 2 decimal places.)
Answer:
a. Your trade will be executed at the bid price of 55.25.
b. Your trade will be executed at the ask price of 55.50.
Explanation:
First note that:
The bid price is the highest price a buyer will pay for a security.
The ask price is the lowest price a seller will accept for a security.
Therefore, we have:
a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? (Round your answer to 2 decimal places.)
Since you are the buyer, your trade will be executed at the bid price of 55.25. This is because the bid price is the highest price you as a buyer will pay for a security.
b. Suppose you have submitted an order to sell at market. At what price will your trade be executed? (Round your answer to 2 decimal places.)
Since you are the seller, your trade will be executed at the ask price of 55.50. This is beecausee the ask price is the lowest price uou as a seller will accept for a security.
Year Nominal GDP Real GDP GDP Deflator (Dollars) (Base year 2016, dollars) 2016 2017 2018 From 2017 to 2018, nominal GDP , and real GDP. The inflation rate in 2018 was.
Why is real GDP a more accurate measure of an economy's production than nominal GDP?
Answer:
Explanation:
The Real GDP is defined as the Nominal GDP minus the inflation effect.
Real GDP provides a more accurate picture of economic growth than nominal GDP because it uses constant prices, making comparisons between years more meaningful by allowing for comparisons of the actual volume of goods and services without considering inflation.
Let's say you bought apples at 5dollars per pound in 2015. Imagining a country of 1000 people and considering everyone bought a pound apples and only apples in that year, the GDP comes out to be 1000*5 = 5000 dollars.
Now let's say inflation rate is 10 percent in 2016 which will increase the price to 5.5 dollars per pound. Also, in one year, 10 more people were added to the country (No of births - No of deaths = New people in that year), this brings out total population to around 1010.
Also, let's say that the sale of apples remained the same, so the GDP of 2016 comes out to be 1000*5.5 = 5500 dollars.
That's a whooping 10% increase in GDP, right?
But here the catch.
The GDP increased not because the demand increased, but because the price of the good increased.
If we see at previous year's price (Not considering the inflation, also called Real GDP), the GDP is same which is 5000 dollars.
So, in reality, there isn't any increase in GDP.
An example of a good that is excludable is: _________
a) an outdoor sculpture visible from the street.
b) a television set.
c) broadcast television.
d) an aerial fireworks display.
Answer:
b) a television set
Explanation:
Excludable goods can be regarded as a s private goods, unlike non-excludable goods which are public goods. Instance of this is that
everyone can utilize public road, but going to cinema cannot be for everyone the way they please, this is because, ticket need to be bought to get access, as ticket is bought, this can excludes somebody else since there is because limited seat. It should be noted that good can be regarded as a excludable, in situation whereby supplier of that good successfully prevent individual that do not pay from consuming it. An example of a good that is excludable is television set
Mainway Toy Company currently has 10,000 shares of common stock outstanding. Its management believes that its current stock price of $95 per share is too high. The company is planning to conduct stock splits in the ratio of 2 for 1 as described in the animation. If Mainway Toy Company declares a 2-for-1 stock split, the price of the company's stock after the split, assuming that the total value of the firm's stock remains the same after the split, will be ____________.
Answer:
$47.50
Explanation:
A stock split implies dividing the existing number of shares into multiples in order to enhance the liquidity of the firm's shares.
It is noteworthy that the stock split does not add any value to the existing stock account balance as well as paid in surplus account value since only the number of issued shares changed , values are kept constant.
share price after split=share price before split/stock split ratio
share price before split=$95
stock split ratio=2/1
share price after split=$95/2/1
share price after split=$95*1/2
share price after split=$47.50
Early in the year,manager John Jacobs set reasonable,understandable,and measurable performance standards and communicated these standards clearly to all team members.Because of these efforts,he should be prepared for the next step in the appraisal process. The first two steps in performance appraisal are establishing performance standards and communicating them to subordinates.The third step is to evaluate performance,and if the first two steps are done correctly,this step is relatively easy.
A. True
B. False
Answer:
A. True
Explanation:
Performance evaluation of an employee should be based on his performance. He should be communicated with expected performance and then analysis should be done against standard and actual performance. When John Jacob has set performance standards and clearly communicates it to all team members the appraisal process would be relatively easy.
The ledger of Mai Company includes the following accounts with normal balances: D. Mai, Capital $9,000; D. Mai, Withdrawals $800; Services Revenue $13,000; Wages Expense $8,400; and Rent Expense $1,600. Prepare the necessary closing entries from the available information at December 31.
Answer: See explanation
Explanation:
The necessary closing entries from the available information at December 31 will be calculated thus:
1. Dec 31
Dr Services Revenue $13000
Cr Income Summary $13000
2. Dec 31
Dr Income Summary $10000
Cr Wages expense $8400
Cr Rent expense $1600
3. Dec 31
Dr Income Summary = $13000 - $10000 = $3000
Cr D. Mai, Capital $3000
4. Dec 31
Dr D. Mai, Capital $800
Cr D. Mai, Withdrawals $800
A student organization is developing promotions for its clothing fundraiser. Email blasts across campus will be part of the campaign. The following are subject line features that might explain whether promotional emails are opened: the number of words in the subject line using the recipient’s name in the subject line including humor in the subject line posing a question in the subject line including the name of a well-known community member What type of model could the student group utilize to analyze which features are important for explaining whether someone opens a promotional email
Answer: Logistic regression
Explanation:
The type of model that the student group can utilize to analyze which features are important for explaining whether someone opens a promotional email is the logistic regression.
Logistic regression is the regression analysis that's used to conduct in a case whereby the dependent variable is binary.
With regards to the question, the logistic regression can provide the best model which will be used to forecast the most important features for the opening of the promotional e-mail.
During 2019, $27,000 of cash dividends were declared and paid. A patent valued at $80,000 was obtained in exchange for land. Equipment that originally cost $20,000 and had $7,000 accumulated depreciation was sold for $13,000 cash. Bonds payable were sold for cash and cash was used to pay for structural improvements to the building. Required a. Compute the change in cash that occurred during 2019. b. Prepare a statement of cash flows using the indirect method
Answer:
a. Change in Cash that occurred during 2019:
Cash outflow $27,000
Cash inflow = $13,000
Net outflow = $14,000
b. Statement of Cash Flows for the year ended December 31, 2019:
Investing activities:
Sale of Equipment $13,000
Financing activities:
Payment of dividends ($27,000)
Net cash outflow = $14,000
Explanation:
a) Data and Calculations:
Cash dividends paid during 2019 = $27,000
Patent purchased = $80,000
Land sold in exchange of patent = $80,000
Sale of equipment = $13,000
Sales of Bonds Payable = Cost of Building Improvements
the long run average cost curve is also called as
Answer:
planning curve.
Explanation:
A long run average cost curve is known as a planning curve.
