Answer:
Total cash disbursement= $267,500
Explanation:
Giving the following information:
Purchase:
July= $260,000
August= $270,000
Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.
Cash disbursement August:
Purchase in cash from August= 270,000*0.75= 202,500
Purchase on account July= 260,000*0.25= 65,000
Total cash disbursement= $267,500
Spruce Ceramics produces large planters to be used in urban landscaping projects. A special earth clay is used to make the planters. The standard quantity of clay used for each planter is 24 pounds. The company uses a standard cost of $2.20 per pound of clay. Spruce produced 3,000 planters in May. In that month, 75,000 pounds of clay were purchased and used at the total cost of $162,000 Read the requirementsLOADING.... Requirement 1. Calculate the direct material price variance. Begin by determining the formula for the price variance, then compute the price variance for the direct materials. (Enter the variance as a positive number. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials)
Answer:
1. $3,000 Favorable
2. $6,600 Unfavorable.
Explanation:
This is an incomplete question. However, the completed part is question number 2, which has been solved below.
1. Direct material price variance
= (Actual price - Standard price) Actual quantity
= ($2.16 - $2.20) × 75,000
= -$0.04 × 75,000
= $3,000 Favorable
Note: Actual price is gotten by; $162,000 / 75,000
= $2.16
2. Direct material quantity variance
= (Actual quantity - Standard quantity) × Standard price
= (75,000 - $72,000) × $2.20
= 3,000 × $2.20
= $6,600 Unfavorable
Note: Standard quantity is gotten by;
24 × 3,000
= 72,000
Bland Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2003, and charged the $4,200 premium to Insurance expense. At its December 31, 2003, year-end, Bland Foods would record which of the following adjusting entries?A) Insurance expense 875 Prepaid insurance 875
B) Prepaid insurance 875 Insurance expense 875
C) Insurance expense 875
Prepaid insurance 3,325
Insurance payable 4,200
D) Prepaid insurance 3,325
Insurance expense 3,325
Answer:
D) Prepaid insurance 3,325
Insurance expense 3,325
Explanation:
insurance cost per month = $4,200 / 24 months = $175 per month
August, September, October, November and December = 5 months = $875
$4,200 - $875 = $3,325
The correct journal entries should have been:
August 1, 2003, purchased 2 year insurance policy
Dr Prepaid insurance 4,200
Cr Cash 4,200
December 31, 2003, accrued insurance expense
Dr Insurance expense 875
Cr Prepaid insurance 875
But, since the purchase was incorrectly journalized as:
Dr Insurance expense 4,200
Cr Cash 4,200
the adjusting entry must be:
Dr Prepaid insurance 3,325
Cr insurance expense 3,325
The 2016 annual report for Mega Mills disclosed that 1 billion shares of common stock have been authorized. At the end of 2015, 760 million shares had been issued and the number of shares in treasury stock was 101 million. During 2016, the only common share transactions were that 18 million common shares were reissued from treasury and 24 million common shares were purchased and held as treasury stock.Required: Determine the number of common shares a. Issued b. In treasuryc. Outstanding at the end of 2016.
Answer:
a. 760 million shares
b. 107 million shares
c. 653 million shares
Explanation:
a. The number of Issued stock is unchanged because Issued stock encompasses both outstanding and treasury stock.
b. Treasury Stock = Beginning balance - Reissued from treasury + repurchased for treasury
= 101 - 18 + 24
= 107 million shares
c. Outstanding stock = Issued Stock - Treasury Stock
= 760 - 107
= 653 million shares
Discount factor is 0.985. Stock XYZ is selling for $40 a share. An American option on this stock with a strike price of $38 is trading at $0.25 per share. If it is known that this option is priced above its intrinsic value, what type of option is it?
Answer:
Put option
Explanation:
We have current price 40dollars - strike price 38dollars = $2. The question says the stock is trading at $0.25 per share. Since 0.25 is higher than 0 it is a put option. And the intrinsic value is $2.
The put option gives one the right to sell a particular number of shares at a price that has been set which is referred to as the strike price before a certain date.
Consider a firm with a 2007 net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover?
Answer:
Inventory turnover days = 29.2 days
Explanation:
Inventory turnover is the average length of time it takes the item of stock to be sold and replaced. It can be measured in days or the number of times.
it can be calculated in days or in number of times
Inventory turnover number of times = cost of goods sold/average inventory
Inventory turnover days = (Average inventory /cost of good sold)× 365 days
It shorter the Inventory turnover in days the better. We will use the days formula.
Note average inventory = (opening inventory + closing inventory)/2
However, the average inventory concept will not be applicable in this question because the opening inventory figure is not given. Hence, we will use the closing inventory figure to represent the average inventory
Inventory turnover days = 2,000,000/25,000,000× 365 days= 29.2
Inventory turnover days = 29.2 days
Bramble Corp. uses flexible budgets. At normal capacity of 19000 units, budgeted manufacturing overhead is: $57000 variable and $270000 fixed. If Stone had actual overhead costs of $328800 for 21000 units produced, what is the difference between actual and budgeted costs
Answer:
$4,200 Favorable
Explanation:
Given the above information,
Variable overhead rate
= $57,000 / 19,000 units
= $3 per unit
Overhead variance = Real - Allocated
= $328,800 - ($3 × 21,000 + $270,000)
= $328,800 - $333,000
= $4,200 Favorable
A company incurs $4,050,000 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2,000 purchase orders, works 50,000 mixing hours, and performs 1,500 tests per year in producing 200,000 drums of Goo and 600,000 drums of Slime. The following data are available: Department Expected use of Driver Cost Ordering and Receiving 2,000 $1,200,000 Mixing 50,000 1,500,000 Testing 1,500 1,350,000 Production information for Goo is as follows: Department Expected use of Driver Ordering and Receiving 400 Mixing 20,000 Testing 500 Compute the amount of overhead assigned to Goo. $2,760,000.
Answer:
$1,290,000
Explanation:
Goo:
Ordering and Receiving = 400 / 2,000 = 20%
Mixing = 20,000 / 50,000 = 40%
Testing = 500 / 1,500 = 33.33%
allocated overhead costs:
Ordering and Receiving = 20% x $1,200,000 = $240,000
Mixing = 40% x $1,500,000 = $600,000
Testing = 33.33% x $1,350,000 = $450,000
total allocated overhead costs = $1,290,000
Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 68,000 −$ 68,000 1 44,000 30,200 2 38,000 34,200 3 25,000 40,000 4 15,600 24,200 a-1. What is the IRR for each of these projects?
Answer:
IRR for A= 35.33%
IRR for B = 31.88%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated using a finacial calculator :
IRR for cash flow A
Cash flow in year 0 = −$ 68,000
Cash flow in year 1 = $44,000
Cash flow in year 2 = $38,000
Cash flow in year 3 = $25,000
Cash flow in year 4 = $15,600
IRR = 35.33%
IRR for cash flow A
Cash flow in year 0 = −$ 68,000
Cash flow in year 1 = $30,200
Cash flow in year 2 = 34,200
Cash flow in year 3 = $40,000
Cash flow in year 4 = $24,200
IRR = 31.88%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button
The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000 divided into two departments: Fabrication, $420,000, and Assembly, $180,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require 8 direct labor hours in Fabrication and 4 direct labor hours in Assembly. The bass boats require 4 direct labor hours in Fabrication and 8 direct labor hours in Assembly. Each product is budgeted for 250 units of production for the year.Required:a. Determine the total number of budgeted direct labor hours for the year in each department.b. Determine the departmental factory overhead rates for both departments.c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
Answer:
Fabrication, $420,000 / 3,000 = $140 per hour
Assembly, $180,000 / 3,000 = $60 per hour
speedboats
8 direct labor hours in Fabrication x 250 = 2,000 hours4 direct labor hours in Assembly x 250 = 1,000 hoursbass boats
4 direct labor hours in Fabrication x 250 = 1,000 hours8 direct labor hours in Assembly x 250 = 2,000 hoursa. Determine the total number of budgeted direct labor hours for the year in each department.
3,000 labor hours in Fabrication and 3,000 labor hours in Assembly
b. Determine the departmental factory overhead rates for both departments.
Fabrication = $140 per hour
Assembly = $60 per hour
c. Determine the factory overhead allocated per unit for each product using the department factory overhead allocation rates.
speedboats
Fabrication $1,120Assembly $240bass boats
Fabrication $560Assembly $480The government wants to set the socially optimal level of nitrogen runoff, and government regulators believe that the actual marginal benefit of pollution (MBP) is given by the estimated MBP curve. The deadweight loss associated with a quota is _____, w
Answer:
Hello your question is incomplete attached below is the complete question
Explanation:
Dead weight loss = 0.5 [( Δp ) * ( ΔD ) ]
D = DEMAND
P = PRICE
DWL with quota = 0.5 [ ( $10 -$6 ) * (12 - 8 ) ]
= 0.5 ( 4*4 ) = $8
DWL with pigouvian tax = 0.5 [ ($10- $6 )*(9 - 8 ) ]
= 0.5 [ 4 * 1 ] = $2
E-tailers, such as Amazon and Expedia, that sell products and services directly to final buyers exclusively over the Internet are known as ________.
Answer:
E-tailers
Explanation:
E-tailers are also known as e-retailers. Where you can purchase things via the internet.
Glad I could help you!
You are considering an investment in software company. The beta of software companies is 1.5. The annual risk-free rate is 2% and the annual market premium is 8%. The expected annual profit from the software subscription is $100,000 and it is expected to grow at the rate of 6% per year. What is the maximum price you are willing to pay for the company? A. $1,370,925.78 B. $1,250,000.00 C. $1,123,221.12 D. $908,153.55
Answer:
Maximum price = $ 1,325,000
Explanation:
The maximum price to be paid for the company is the present value of the annual profit discounted at the rate of return on equity.
The return on equity can be calculated using the capital asset pricing model (CAPM)
Under CAPM,
E(r)= Rf + β(Rm-Rf)
E(r)- expected return, Rf-risk-free rate , β= Beta, Rm= Return on market.
Using this model, we can work out the value of beta as follows:
Ke= ?., Rf- 2%, Rm-Rf - 8%
Ke- 2% + 1.5× (8%)= 14 %
Price for the company can now be determined using the present value of the perpetuity formula with growth as follows:
The model is represented below:
P = A ×(1+g)/ ke- g
DATA
A- 100,000
g- 6%
ke- 14%
Price = 100,000× (1.06)/(0.14-0.06)= $ 1,325,000
Maximum price = $ 1,325,000
Nichols, Inc. has 1,000 shares of 4%, $100 par value, cumulative preferred stock and 75,000 shares of $1 par value common stock outstanding at December 31 of the current year and has declared a dividend for the year. What is the annual dividend that will be paid to the preferred stockholders
Answer: $20,000
Explanation:
The dividends due to preferred stock are fixed and quoted on the preference shares.
The above shares are to get 4% of their par value in dividends.
= (4% * 100) * 5,000 shares
= $20,000
A yearly dividend is a the price paid per share of funds by the firm to its stockholders.
The yearly dividend that will be paid to the elected stockholders will be $20,000
It can be determined by using the formula:[tex]= \text{Monthly Shares} \times \text{Number of payments per year}[/tex]
The above shares are to get 4% of their par price in interests:[tex]= (4\% \times 100) \times 5,000 \; \text{shares}[/tex]
= $20,000
Therefore, $20,000 will be paid to the stockholders.
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LLP Company had the following stockholders’ equity as ofJanuary 1, 2017.
Common stock, $1 par value, 120,000 shares issued$120,000
Paid-in capital in excess of par—common stock833,000
Retained earnings408,000
Total stockholders’ equity$1,361,000
During 2017, the following transactions occurred.
Feb. 16LLP repurchased 5,000 shares of treasury stock at a price of $15 per share.
Mar. 8200 shares of treasury stock repurchased above were reissued at $16 per share.
Apr. 11800 shares of treasury stock repurchased above were reissued at $12 per share.
May. 82,000 shares of treasury stock repurchased above were reissued at $18 per share
Instructions:
a. Prepare the journal entries to record the treasury stock transactions in 2017, assuming Clemson uses the cost method.
b. Prepare the stockholders’ equity section as of April 30, 2017. Net income for the first 4 months of 2017 was $130,000.
Complete Question:
Clemenson LLP Company had the following stockholders’ equity as of January 1, 2017.
Common stock, $1 par value, 120,000 shares issued$120,000
Paid-in capital in excess of par—common stock 833,000
Retained earnings 408,000
Total stockholders’ equity$1,361,000
During 2017, the following transactions occurred.
Feb. 16: LLP repurchased 5,000 shares of treasury stock at a price of $15 per share.
Mar. 8: 2,000 shares of treasury stock repurchased above were reissued at $16 per share.
Apr. 11: 800 shares of treasury stock repurchased above were reissued at $12 per share.
May. 8: 2,000 shares of treasury stock repurchased above were reissued at $18 per share
Instructions:
a. Prepare the journal entries to record the treasury stock transactions in 2017, assuming Clemson uses the cost method.
b. Prepare the stockholders’ equity section as of April 30, 2017. Net income for the first 4 months of 2017 was $130,000.
Answer:
Clemson LLP Company
a. Journal Entries
Feb. 16:
Debit Treasury Stock account $75,000
Credit Cash Account $75,000
To record the repurchase of 5,000 shares of treasury stock at a price of $15 per share.
March 8:
Debit Cash Account $32,000
Credit Treasury Stock account $32,000
To record the resale of 2,000 shares of treasury stock at $16 per share.
April 11:
Debit Cash Account $9,600
Credit Treasury Stock account $9,600
To record the resale of 800 shares of treasury stock at $12 per share.
May 8:
Debit Cash Account $36,000
Credit Treasury Stock account $36,000
To record the resale of 2,000 shares of treasury stock at $18 per share.
b. Stockholders' Equity Section as of April 30, 2017:
Common stock, $1 par value, 120,000 shares issued $120,000
Treasury Stock, 200 shares 2,600
Paid-in capital in excess of par—common stock 833,000
Retained earnings 538,000
Total stockholders’ equity $1,493,600
Explanation:
a) Data and Calculations:
Stockholders’ equity as of January 1, 2017:
Common stock, $1 par value, 120,000 shares issued $120,000
Paid-in capital in excess of par—common stock 833,000
Retained earnings 408,000
Total stockholders’ equity $1,361,000
b) Retained Earnings:
Jan. 1, 2017 balance $408,000
Net Income $130,000
April 30, 2017 bal. $538,000
c) Since Clemenson accounts for the Treasury Stock transactions using the cost method, it means that all treasury transactions are recorded directly in the Treasury Stock account based on their cost and not the par value. This method of using the cost is one of the two methods for accounting for treasury stock transactions. The other method, which Clemenson can use is the par value method. Under this second method, Clemenson will record the above and below par value differences in the Paid-in Capital in excess of par account instead of the Treasury Stock account. While the treasury stock account is a contra account to the Common Stock account, in Clemenson's case, the Treasury Stock balance is not a debit but a credit balance.
Question 59 of 83 Project M requires an initial investment of $25 million. The project is expected to generate $2.25 million in after-tax cash flow each year forever. Calculate the IRR for the project. 10% 9% 8% 7%
Answer:
9%
Explanation:
In order to calculate the internal rate of return (IRR) for a project that yields cash flows perpetually, we need to divide the yearly cash flow by the project's initial outlay:
IRR = $2,250,000 / $25,000,000 = 0.09 = 9%
The IRR represents the discount rate at which the project's net present value (NPV) equals 0.
the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes. Today, the price has gone up to $3.75 a box, and Julie is now willing to buy 8 boxes. Is Julie's demand for envelopes elastic or inelastic? What is Julie's elasticity of demand?
Answer:
Her elasticity of demand is the absolute value of -0.8, or 0.8. Julie's elasticity of demand is inelastic, since it is less than 1.
Explanation:
% Change in Quantity = (8 - 10)/(10) = -0.20 = -20%
% Change in Price = (3.75 - 3.00)/(3.00) = 0.25 = 25%
Elasticity = |(-20%)/(25%)| = |-0.8| = 0.8
Companies whose stock is traded in a public market must report EPS in the notes of their financial statements. must report EPS on their income statement. must report EPS on their balance sheet. are not required to report EPS.
Answer:
The answer is B. must report EPS on their income statement
Explanation:
If a company's share is being traded publicly, its Earnings Per Share (EPS) must be shown on its income statement(Statement of profit or loss and other comprehensive income).
Earnings Per Share (EPS) is calculated as follows:
Earnings (profit after tax) ÷ total number of shares outstanding.
Note: EPS does not recognize/consider discontinue operations.
Jensen Corporation uses the percentageofsales method to estimate uncollectibles. Net credit sales for the current year amount to and management estimates % will be uncollectible. The Allowance for Doubtful Accounts prior to adjustment has a debit balance of . After all adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be:
Answer:
$42,300 credit balance
Explanation:
The question is incomplete:
Jensen Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,010,000 and management estimates 3% will be uncollectible. The Allowance for Doubtful Accounts prior to adjustment has a debit balance of $18,000. After all adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be:
uncollectible accounts = $2,010,000 x 3% = $60,300 credit
the adjusting entry at the end of the year:
December 31, 202x, bad debt expense:
Dr Bad debt 60,300
Cr Allowance for uncollectible accounts 60,300
the ending balance of the Allowance for uncollectible accounts account = $60,300 - $18,000 (debit balance) = $42,300
Interest rates can be measured more accurately and quickly than reserve aggregates; hence an interest rate is preferred to the reserve aggregates as a policy instrument.
a. True
b. False
Answer:
False
Explanation:
This is false.
In reporting reserves aggregate there are lags interest rate such as the federal interest rate are quite easy to measure and easily observable. Such short term interest rate are nominal values and they do not measure the real cost of borrowing well. It does not show accurately what happens to Gross domestic product. Real interest rate equals nominal interest rate as a ratio of reduced inflation gives a representation of true cost of borrowing.
We cannot say with certainty that interests rate is a better policy instrument based on the ground of measurability.
A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will
The question is missing the options and is incomplete. The q=complete question is,
A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will:
a. both decrease
b. both increase
c. remain the same and decrease, respectively
d. increase and remain the same, respectively
Answer:
The correct answer is option D as the current ratio has increased while the working capital has remained the same.
Explanation:
The current ratio is calculated by dividing the current assets by the current liabilities. The formula for current ratio is,
Current ratio = Current assets / current liabilities
The old current ratio was,
Current ratio = 70000 / 50000 = 1.4
After the transaction, the new current ratio is,
Current ratio = (70000 - 1000) / (50000 - 1000) = 1.408
Thus, as a result of the transaction, the current ratio has increased.
The working capital is the difference between the value of current assets and the value of current liabilities.
The formula to calculate the working capital is,
Working capital = Current assets - Current liabilities
Old working capital = 70000 - 50000 = $20000
The new working capital = 69000 - 49000 = $20000
Thus, the working capital remain unchanged after the transaction.
As flextime, consulting, telecommuting, and downsizing make it more difficult for
people to donate blood at the workplace, Canadian Blood Services has launched a
CRM marketing campaign in Toronto to boost awareness and repeat donations.
Early in the campaign, it went to its listings of previous donors and pulled out
those with birthdays in February, March, and April. These donors were sent a
birthday card with the greeting, "On the anniversary of your life, would you
consider saving another's life?"
Refer to the scenario.
What technique did the organization use to analyze its donor information?
Answer:
The technique which the organization used in analyzing its donor is called Customer segmentation
Explanation:
Customer segmentation is the process of breaking large groups of customers into smaller, more homogeneous groups. This division are done specifically probably for marketing using attribute such as age, gender, interests and spending habits.
In the case of the CRM marketing campaign in Toronto, they inability to analyze all the data they had poses a challenge hence they reason why they segmented their customers according to their birthday. And customers are reached out according to those whose birthday falls nearby.
Pizza sells an average of pizzas per week, of which % are single-topping pizzas and % are supreme pizzas with multiple toppings. Singles sell for each and incur variable costs of . Supremes sell for each and incur variable costs of . The contribution margin per unit and total contribution margin for Singles and Supremes are
Answer:
the question is incomplete, so I looked for a similar question:
"Pizza sells an average of 150 pizzas per week, of which 20% are single-topping pizzas and 80% are supreme pizzas with multiple toppings. Singles sell for $8 each and incur variable costs of $2. Supremes sell for $12 each and incur variable costs of $6."
contribution margin for Singles = $8 - $2 = $6
contribution margin ratio for Singles = $6 / $8 = 75%
total contribution margin for Singles = $6 x 150 x 20% = $180
contribution margin for Supremes = $12 - $6 = $6
contribution margin ratio for Supremes = $6 / $12 = 50%
total contribution margin for Supremes = $6 x 150 x 80% = $720
Coney Island Entertainment issues $1,300,000 of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.
Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:
Required:
1. The market interest rate is 5% and the bonds issue at face amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors.)
Issue price
Date Cash Paid Interest Expense Increase in Carrying value Carrying value
1/1
6/30
13/31
2. The market interest rate is 6% and the bonds issue at a discount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors.)
3. The market interest rate is 4% and the bonds issue at a premium. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors.)
Answer:
1) The market interest rate is 5% and the bonds issue at face amount.
Dr Cash 1,300,000
Cr Bonds payable 1,300,000
Year Interest payment Book value of bonds
June/1 $32,500 $1,300,000
Dec/1 $32,500 $1,300,000
June/2 $32,500 $1,300,000
2) The market interest rate is 6% and the bonds issue at a discount.
price of bonds:
PV of face value = $1,300,000 / (1 + 3%)³⁰ = $535,582.79
PV of coupons = $32,500 x 19.600 (PV annuity factor, 3%, 30 periods) = $637,000
market price = $1,172,582.79
Dr Cash 1,172,582.79
Dr Discount on bonds payable 127,417.21
Cr Bonds payable 1,300,000
discount amortization per coupon payment = $127,417.21 / 30 = $4,247.24
Year Cash paid Interest Amortization Bond Book
expense bond discount discount value
June/1 $32,500 $36,747.24 $4,247.24 $123,169.97 $1,176,830.03
Dec/1 $32,500 $36,747.24 $4,247.24 $118,922.73 $1,181,077.27
June/2 $32,500 $36,747.24 $4,247.24 $114,675.49 $1,185,324.51
3. The market interest rate is 4% and the bonds issue at a premium.
price of bonds:
PV of face value = $1,300,000 / (1 + 2%)³⁰ = $717,692.16
PV of coupons = $32,500 x 22.396 (PV annuity factor, 2%, 30 periods) = $727,870
market price = $1,445,562.16
Dr Cash 1,445,562.16
Cr Bonds payable 1,300,000
Cr Premium on bonds payable 145,562.16
discount amortization per coupon payment = $145,562.16 / 30 = $4,852.07
Year Cash paid Interest Amortization Bond Book
expense bond discount premium value
June/1 $32,500 $27,647.93 $4,852.07 $140,710.09 $1,440,710.09
Dec/1 $32,500 $27,647.93 $4,852.07 $135,858.02 $1,435,858.02
June/2 $32,500 $27,647.93 $4,852.07 $131,005.95 $1,431,005.95
Drew and Tammy decide to start a new cake-decorating business. They each contribute $10,000 to get the business off the ground. This money is considered
Answer: a down payment or deposit
Explanation:
Drew and Tammy decide to start a new cake-decorating business. They each contribute $10,000 to get the business off the ground. This money is considered as equity capital.
What do you mean by Business?The exchange, acquisition, sale, or creation of goods and services with the aim of making money and meeting client demands constitutes business. Businesses can be for-profit or nonprofit entities that work to further a social cause or make a profit, respectively.
Equity in the context of finance refers to ownership of assets with potential obligations such as debts. For accounting reasons, equity is calculated by deducting liabilities from the value of the assets. The difference of $14,000, for instance, is equity if a person owns a car worth $24,000 and owes $10,000 on the loan used to purchase the vehicle.
A single asset, like a car or house, or an entire company may be covered by equity. A company that needs to launch or grow its operations can sell equity to raise money that doesn't need to be repaid on a predetermined timeline.
Therefore, The money will be considered as Equity capital.
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A consumer plays the role of:
A)a wage earner.
B)a saver.
C)a borrower.
D)All of these choices are correct.
Answer:
c) borrower
Explanation:
A consumer plays the role of a borrower. The consumer is the important role in the economy. Thus, option (c) is correct.
What is consumer?The term “consumer” means purchasing a product or service for the purpose of personal use. The consumer are consumed the product and services. The consumer are buying the product and services with exchange of money.
According to the role of the consumer are the played in the significant role of the economy. The business are the sale of the goods and the services are the borrower are the paid the money to the business. The economy cycle was the continue run.
As a result, the consumer plays the role of a borrower. The consumer is the significant role in the economy. Therefore, option (c) is correct.
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7. Ms. House utilizes a strategy of "Check 1 – 2- 3". Why does she do this? How do you think this was initially taught?
Explanation:
To get her student's attention. Remember, the check 1 2 3 strategy allows teachers to get an inside into the students understanding.
However, in this scenario, Ms. House uses the strategy to lower her student's voices, so as to get their attention. She likely started using this strategy at the start of the school year and kept doing it.
The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $15.90 for each of the 25 million shares sold. The initial offering price was $17.50 per share, and the stock rose to $19.40 per share in the first few minutes of trading. Raven paid $860,000 in direct legal and other costs and $330,000 in indirect costs.What was the flotation cost as a percentage of funds raised?
Answer:
22.38%
Explanation:
Raven corporation has just gone public
They received $15.90 for each 25 million shares that was sold
The first step is to calculate the net amount raised
Net amount that was raised= 15.90×25,000,000 = 397,500,000
397,500,000-860,000-330,000
= 396,310,000
Underwriter spread= 17.50-15.90
= 1.6 per shares
Total underwriter spread= per share spread× number of shares that were offered
= 1.6×25,000,000
= 40,000,000
Total direct costs= 40,000,000+860,000
=40,860,000
Indirect flotation cost= indirect cost+price appreciation
= 330,000+(19.40-17.50)×25,000,000
= 330,000+1.9×25,000,000
=330,000+47,500,000
= 47,830,000
Total flotation cost= 47,830,000+40,860,000
= 88,690,000
Therefore, the flotation cost as a percentage of funds raised can be calculated as follows
= 88,690,000/396,310,000 × 100
= 0.2238×100
= 22.38%
Hence the flotation costs as a percentage of funds raised is 22.38%
Using the periodic FIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) Multiple Choice $3,405. $3,445. $3,200. $3,540. $3,270.
Answer:
The question is incomplete, below is the completed question:
A company had the following purchases and sales during its first year of operations:
January: Purchases 10 units at $120-sales 6 units
February: Purchases 20 units at $125-sales 5 units
May: Purchases 15 units at $130-sales 9 units
September: Purchases 12 units at $135-sales 8 units
November: Purchases 10 units at $140-sales 13 units
On December 31, there were 26 units remaining in ending inventory. Using the periodic FIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.) Multiple Choice $3,405. $3,445. $3,200. $3,540. $3,270.
Answer:
The cost of ending inventory = $3,540
Explanation:
FIFO (First-in-first-out) inventory costing method is a costing method where the goods purchased first are sold first before those purchased at a later date.
In order to answer this question, let us first determine the total number of units of goods purchased during the year
Month units
January 10
February 20
May 15
September 12
November 10
Total 67
Therefore a total of 67 units were purchased during the year.
Next, we are told that the ending inventory balance = 26 units
Therefore the number of units sold during the year = Total purchase - ending inventory = 67 - 26 = 41
41 units were sold during the year.
using the FIFO inventory method, the units purchased first are sold out first therefore, out of the 41 units sold:
January = 10 units
February = 15 units
May = 11 units
Total = 41 units
This means that out of the 15 unit purchased in may, 11 units were sold, hence the number of units remaining = 15 - 11 = 4 units.
From this point up to November, forms the ending iniventory therefore, the the total ending inventory is calculated as follows:
Month units price per unit($) Total($)
May 4 130 520
September 12 135 1,620
November 10 140 1,400
Total 26 3,540
Therefore, the cost of ending inventory = $3,540
Some 150 million customers a month visit Amazon and the company passes through $160 billion in sales via its global supply channels and partnerships making interorganizational relationships very important to the company. Which interacting organization has a low coordination, low integration, transactional focus
Answer with Explanation:
Amazon is fastest growing company in the world which has crossed 2 billion customer visits. It has also increased the worth of the company to $1.14 trillions. The supply chain management is where the strengths of the company lies and nobody can match the pricing strategy, quality management and other significant factors that are included in the supply chain management to ensure that the customer is having what they are paying for.
Supply chain management process includes the key partners which includes their suppliers, partners, clients and customers as well who play important roles in the supply chain process by coordinating, integrating systems with each other and are involved in the transaction-al process.
The customers are the one who interact fewer than partners, suppliers, clients, etc because all they do is order a particular product. This is the first interaction of the customer with Amazon and the last interaction is when the customer received the order. So this means they are less interacting party in this process.
Suppliers are continuously contacted and informed about the pricing, supply chain issues, etc so that the company is able to deliver its customers what they are desiring. Supply chain partners also in the process of interacting with Amazon as they have to move products from supplier to the customer. These partners are highly interacted, possess integrating systems and of transaction-al importance to the company.
Skysong, Inc. reports the following liabilities (in thousands) on its December 31, 2020, balance sheet and notes to the financial statements. Accounts payable $4,392.0 Mortgage payable $6,845.0 Unearned rent revenue 1,650.0 Notes payable (due in 2023) 351.0 Bonds payable 2,003.0 Salaries and wages payable 651.0 Current portion of mortgage payable 2,228.0 Notes payable (due in 2021) 2,584.0 Prepare the liabilities section of Skysong’s balance sheet as at December 31, 2020.
Answer:
Skysong, Inc.
Liabilities section
Current liabilities:
Accounts payable $4,392Salaries and wages payable $651Unearned rent revenue $1,650Mortgage payable $2,228Notes payable $2,584Total current liabilities $11,505Long term liabilities:
Mortgage payable $4,617 Notes payable (due in 2023) $351Bonds payable $2,003Total long term liabilities $6,971Total liabilities: $18,476
