Answer:
Straight line method rate = 1/ Number of years * 100 = 1/25*100 = 4%
Double declining balance depreciation = 2*Straight line method rate*Book value
First Year depreciation = 8%*$960,000
First Year depreciation = $76,800
Second year depreciation = 8% * (Book Value as on 1st year - First Year depreciation)
Second year depreciation = 8%*($960,000-$76,800)
Second year depreciation = 8%*$883,200
Second year depreciation = $70,656
You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $275,000
Answer:
To answer is 73.6 months(approximately 74 days)
Explanation:
Future value (FV) = $275,000
Annual interest rate(i) = 7%
Monthly interest rate = 0.58%(7/13)
Periodic cash outflow (PMT) = $3,000
Number of months (N) = ?
Using a texas BA II Plus calculator
FV = 275,000; PMT = -3,000; I/Y = 0.583 CPT N= 73.6
Therefore the number of months is 73.6 months. Approximately, 74 days
Dolan Company reports its income from investments under the equity method and recognized income of $25,000 from its investment in Moss Co. during the current year, even though no dividends were declared or paid by Moss during the year. On Dolan's statement of cash flows (indirect method), the $25,000 should:________. A) not be shown. B) be shown as cash inflow from investing activities. C) be shown as cash outflow from financing activities. D) be shown as a deduction from net income in the cash flows from operating activities section.
Answer:
The answer is B.
Explanation:
The correct option is B.
Dolan company has an investment in Moss which gave him an income(inflow) of $25,000. So on Dolan's statement of cash flow, this transaction will be under 'Cash flow from Investing Activities' and the line item will be:
Cash inflow from Investing Activities - $25,000.
It doesn't matter whether a cash flow is prepared in a direct or indirect manner for Investing Activities or Financing Activities, it only affect Operating Activities.
Solve for the unknown interest rate in each of the following (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.):
Present Value Years Interest Rate Future Value
181 5 $ 317
335 17 1,080
48,000 13 185,382
40,353 30 531,618
Answer:
11.86%
7.13%
19.95%
8.97%
Explanation:
interest rate = [tex]\frac{future value}{present value}}^{\frac{1}{n} } - 1[/tex]
(317/181)^ (1/5) - 1 = 11.86%
1080/335)^(1/17) - 1 = .13%
(185,382/48,000)^(1/13) - 1 = 19.95%
(531,618 / 40,353)^(1/30) - 1 = 8.97%
The interest rate in the 1 case is 5.01%, 2 case is 5.79%, 3 case is 8.05%, 4 case is 10.60%.
What is interest rate?An interest rate is the amount of interest owed per period, as a quotient of the amount lent, deposited, or borrowed.
Computation of the interest rates :The formula for future value is:
[tex]\text{FV}= \text{PV} \ (1+r)^n[/tex]
where,
PV=present value
r=interest rate
n =number of periods/ years
FV = future value.
Then, the formula for finding r is :
[tex]\text{FV}= \text{PV} \ (1+r)^n\\\\r= (\dfrac{\text{FV}}{\text{PV}})^\dfrac{1}{\text{n}-1}[/tex]
case1:put the above formula in case 1 we get:
[tex]r= (\dfrac{\text{\$231}}{\text{\$190}})^\dfrac{1}{4}-1}\\\\r= (\dfrac{\text{\$231}}{\text{\$190}})^{0.25-1}\\\\r=(1.21578947)^{0.25-1}\\\\r=1.05006116 -1\\\\r=0.05006116\times100\\\\r=5.01%[/tex]
case2:Put the above formula in case 2 we get:
[tex]r= (\dfrac{\text{\$854}}{\text{\$310}})^\dfrac{1}{18}-1}\\\\r= (\dfrac{\text{\$854}}{\text{\$310}})^{0.0555-1}\\\\r=(2.75483871)^{0.0555-1}\\\\r=1.05785304 -1-1\\\\r=0.05785304\times100\\\\r=5.79%.[/tex]
case3:Put the above formula in case 3 we get:
[tex]r= (\dfrac{\text{\$1,48,042}}{\text{\$34,000}})^\dfrac{1}{19}-1}\\\\r= (\dfrac{\text{\$1,48,042}}{\text{\$34,000}})^{0.0526-1}\\\\r=(4.35417647)^{0.0526-1}\\\\r=1.08045444 -1\\\\r=0.08045444\times100\\\\r=8.05%[/tex]
case4:Put the above formula in case 4 we get:
[tex]r= (\dfrac{\text{\$412,862}}{\text{\$36,261}})^\dfrac{1}{25}-1}\\\\r= (\dfrac{\text{\$412,862}}{\text{\$36,261}})^{0.04-1}\\\\r=(12.4127958)^{0.04-1}\\\\r=1.10599913 -1\\\\r=0.10599913\times100\\\\r=10.60%.[/tex]
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Journalize the six December 31 adjusting entries for Cole Designs that adjusted the accounts to arrive at the financial statements in the Adjusted Financial Statements panel. Refer to the Chart of Accounts for exact wording of account titles. Journalize each adjustment as a separate entry.
Cole Designs
Income Statement
For the Year Ended December 31, 2018
Fees earned $77,000.00
Expenses:
Wages expense $47,200.00
Supplies expense 3,515.00
Insurance expense 2,900.00
Depreciation expense 2,000.00
Total expenses 55,615.00
Net income $21,385.00
CHART OF ACCOUNTS
Cole Designs
General Ledger
ASSETS
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation-Equipment
LIABILITIES
Wages Payable
Unearned Fees
EQUITY
Ann Cole, Capital
Ann Cole, Drawing
REVENUE
Fees Earned
EXPENSES
Wages Expense
Supplies Expense
Insurance Expense
Depreciation Expense
Answer:
1- Accounts Receivable (Dr.) $500
Fees Earned (Cr.) $500
2- Unearned Fees (Dr.) $4,500
Accounts Receivable (Cr.) $4,500
3- Insurance Expense (Dr.) $1,600
Prepaid Insurance (Cr.) $1,600
4- Depreciation Expense (Dr.) $1,700
Accumulated Depreciation (Cr.) $ 1,700
5- Office Supplies Expense (Dr.) $3,530
Office Supplies (Cr.) $3,530
6- Wages Expense (Dr.) $1,850
Wages Payable (Cr.) $1,850
Explanation:
Adjusting entries are prepared at the month end to adjust the transaction which occur after the recording or if there is any change in already recorded transaction. The liabilities and assets accounts are adjusted at the month end to reflect true expense or liability.
U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 98,000 19,980 Labor (hours) 20,600 15,600 Raw materials (currency) $ 19,950 19,750 (FC) Capital equipment (hours) 59,250 5,600 *Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.) b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.) c. Calculate raw material productivity figures (units/$ where $1
Answer:
a. Productivity = Sales /Labour Hour
U.S
Productivity = 98000 units/20600 hours
Productivity = 4.76
LDC
Productivity = 19980 units/15600 hours
Productivity = 1.28
Capital Productivity = Sales / Capital Equipment (Hours)
U.S
Capital Productivity = 98000 units/59250 hours
Capital Productivity = 1.65
LDC
Capital Productivity = 19980 units/5600 hours
Capital Productivity = 3.57
b. Multi-factor Productivity = Total Output (Sales) / (Labour Hours + Capital Equipment Hours)
U.S
Multi-factor Productivity = 98000 units/(20600+59250)
Multi-factor Productivity = 98000 units / 79850 hours
Multi-factor Productivity = 1.23
LDC
Multi-factor Productivity = 19980 units / (15600+5600)
Multi-factor Productivity = 19980 units / 21200 hours
Multi-factor Productivity = 0.94
c. Raw Material Productivity = Sales / Raw Materials Currency
U.S
Raw Material Productivity = 98000 units/$19950
Raw Material Productivity = 4.91
LDC
Raw Material Productivity = 19980 units / (19750 /10)
Raw Material Productivity = 19980 units / $1975
Raw Material Productivity = 10.12
Owner's equity at the start of the period is $35,000; net income for the period is $30,000; the total investments by the owner is $15,000; and total withdrawals by the owner is $5,000. The owner's equity at the end of the period is a.$75,000. b.$85,000. c.$80,000. d.$40,000.
Answer:
The answer is A
Explanation:
Balance b/f - $35,000
Add: Net income - $30,000
Add: Total investment - $15,000
Minus: owner's withdrawal- ($5,000)
Total-. $75,000
Therefore, the owner's equity at the end of the period is $75,000(option A)
Which one of the following items is not generally used in preparing a statement of cash flows? Group of answer choices Adjusted trial balance Comparative balance sheets Current income statement Additional information
Answer:
Adjusted trial balance
Explanation:
In financial accounting, statement of cash flow can be regarded as a financial statement which give details of how changes that occur in balance sheet accounts as well as income have effect on cash as well as cash equivalents, it also helps in breaking down of analysis to operating as well as investing and other financing activities.
It should be noted that the following items are generally used in preparing a statement of cash flows;
✓Comparative balance sheets
✓Current income statement
✓Additional information
The Molding Department of Sunland Company has the following production data: beginning work in process 25200 units (70% complete), started into production 474000 units, completed and transferred out 449700 units, and ending work in process 49500 units (30% complete). Assuming all materials are entered at the beginning of the process, equivalent units of production for materials are:____.
a. 459150.
b. 499200.
c. 464550.
d. 449700.
Answer:
b. 499200
Explanation:
Calculation to determine what the equivalent units of production for materials are:
Using this formula
Equivalent units of production for materials=Completed and transferred out units+ Ending work in process units
Let plug in the formula
Equivalent units of production for materials=449700units+ 49500units
Equivalent units of production for materials=499200
Therefore Assuming all materials are entered at the beginning of the process, equivalent units of production for materials are:499200
When a perfectly competitive firm decides to shut down, Group of answer choices marginal cost is above average variable cost.
Answer:
price is below average variable cost
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
firms should shutdown when price is less than average variable cost and exit when price is less than average total cost
Galvatron Metals has a bond outstanding with a coupon rate of 6.3 percent and semiannual payments. The bond currently sells for $949 and matures in 25 years. The par value is $1,000 and the company's tax rate is 39 percent. What is the company's aftertax cost of debt
Answer:
The right response is "4.102%".
Explanation:
Given:
Number of half years,
n = [tex]25\times 2[/tex]
= [tex]50[/tex]
Coupon per half years,
c = [tex]1000\times \frac{6.3 \ percent}{2}[/tex]
= [tex]31.5[/tex]
Price,
pv = 949
Par value,
= 1000
Now,
The YTM will be:
= [tex]rate(n,c,-pv,fv)\times 2[/tex]
= [tex]rate(50,31.5,-949,1000)\times 2[/tex]
= [tex]6.724[/tex] (%)
hence,
After tax cost of debt will be:
= [tex]YTM\times (1-tax \ rate)[/tex]
= [tex]6.724\times (1-39)[/tex]
= [tex]4.102[/tex] (%)
A seller uses a periodic inventory system, and on April 4, it sells $5,000 in merchandise on credit (when its cost is $2,400) to a customer on credit terms of 3/10, n/30. On April 5, the customer returns merchandise for a cash refund of $500.
Required:
Complete the seller's necessary journal entry.
Answer:
Periodic Inventory System
Journal Entries
April 4 Debit Accounts receivable $5,000
Credit Sales revenue $5,000
To record the sale of goods on credit, terms of 3/10, n/30.
April 5 Debit Sales returns $500
Credit Accounts receivable (cash) $500
To record the return of goods for a cash refund.
Explanation:
a) Data and Analysis:
April 4 Accounts receivable $5,000 Sales revenue $5,000 credit terms of 3/10, n/30.
April 5 Sales returns $500 Accounts receivable (cash) $500
b) The seller uses a periodic inventory system. Therefore, the cost of goods sold will not be recorded on April 4 until April 30, when there will be a physical count of inventory to determine the closing inventory. With the beginning and ending inventories together with the purchases account, the cost of goods sold can then be calculated.
A patent gives the inventor Multiple Choice property rights for 10 years. the right to keep the patented process but not the product for five years. the right to use the invention until development costs are recouped. exclusive right to manufacture, exploit, use, and sell the invention for a given time period.
Answer:
Explanation:
famoys
Mystery, Inc. is contemplating selling bonds. The issue is to be composed of 800 bonds, each with a face amount of $750. How much is Mystery, Inc. able to borrow (in total) if each bond is sold at 95% of par
Answer:
$570,000
Explanation:
Calculation to determine How much is Mystery, Inc. able to borrow (in total) if each bond is sold at 95% of par
Using this formula
Total Amount borrowed=Bonds*Face value*95% of par
Let plug in the formula
Total Amount borrowed=800*$750*0.95
Total Amount borrowed=$570,000
Therefore the amount the Mystery, Inc. will be able to borrow (in total) if each bond is sold at 95% of par is $570,000
Samson Corporation had sales of $1,000,000 during 2012, of which 60 percent were on credit. On December 31, 2012, Accounts Receivable totaled $80,000, and Allowance for Bad Debts had a credit balance of $1,200. Given this information, if uncollectible receivables are estimated to be 1/2 of 1 percent of credit sales, the adjusting entry to account for uncollectible receivables as of December 31, 2012, would include a:________
A) Debit to Bad Debt Expense of $3,000
B) Debit to Bad Debt Expense of $1,800
C) Credit to Bad Debt Expense of $3,000
D) Credit to Allowance for Bad Debts of $5,000
Answer:
A) Debit to Bad Debt Expense of $3,000
Explanation:
Based on the information given the appropriatethe adjusting journal entry to ACCOUNT FOR UNCOLLECTIBLE RECEIVABLES as of December 31, 2012, would include a DEBIT TO BAD DEBT EXPENSE OF $3,000
BAD DEBT EXPENSE=$1,000,000 *.6*0.005
BAD DEBT EXPENSE=$3,000
A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,108. Using effective-interest amortization, what will be the approximate carrying value of the bonds on Dec 31, 2020 balance sheet?
a. $14, 709, 481.
b. $15,000,000.
c. $14, 718, 844.
d. $14, 706, 232.
Answer:
Using effective-interest amortization, the approximate carrying value of the bonds on Dec 31, 2020 balance sheet is:
a. $14, 709, 481.
Explanation:
a) Data and Calculations:
Face value of bonds = $15,000,000
Bonds price = 14,703,108
Bonds discount = $296,892
Coupon interest rate = 7.8%
Effective interest rate = 8%
Interest payments on June 30 and December 31
June 30, 2020:
Interest expense = $588,124 ($14,703,108 * 4%)
Cash payment = $585,000 ($15,000,000 * 3.9%)
Amortization of discount = $3,124 ($588,124 - $585,000)
Bonds payable = $14,706,232 ($14,703,108 + $3,124)
December 31, 2020:
Interest expense = $588,249 ($14,706,232 * 4%)
Cash payment = $585,000 ($15,000,000 * 3.9%)
Amortization of discount = $3,249 ($588,249 - $585,000)
Bonds payable = $14,709,481 ($14,706,232 + $3,249)
ME company sold 200 units of its goods for $5 each. The COGS is $3 each. Prepare journal entries
for the transactions.
i) 10 days later, customer returned 50 units of goods
ii) 10 days later, customer wanted to return 50 defective units of goods, the company agreed to
reduce price to $3, so that the customer accepted the goods and not returned.
Answer:
Explanation:
Sales Returns and Allowances 250
Accounts Receivable 250
Sales Returns and Allowances 600
Accounts Receivable 600
A product returned to the seller by a customer is known as a sales return. Usually, a return is made as a result of defective or overage merchandise being ordered, shipped, or received.
What is a sale and sale return?A retailer pays only for the goods they sell and returns the unsold inventory to the wholesaler or manufacturer under a sale or return arrangement. The retailer can return unsold products under a sale or return arrangement, preventing write-offs.
Following are the necessary journal entries required to pass.
Particular Debit Credit
Sale Return A/c $250
1 Accounts Receivable A/C $250
(Being 50 units of defective goods return at $5)
2 Sale Return A/c $600
Accounts Receivable A/C $600
(Being 200 units of defective goods return at $3)
When goods are returned, the sales returns and allowances account is debited to lower sales, while accounts receivable or cash are credited to give refunds or lower what the consumer owes. To credit the inventory with the returned items, a second entry debiting inventory must be created.
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The chart shows the lowest price of the Microsoft stock over the last year and the highest price. If you had purchased the stock at the low point and sold it as the high point, what percent increase (to the nearest whole percent) in the price of the stock would you have experienced
Answer:
The percent increase (to the nearest whole percent) in the price of the stock you would have experienced is 34%.
Explanation:
Note: This question is not complete as the Chart is not included. To complete the question, the chart is therefore provided before answering the question. See the attached image for the chart.
The explanation of the answer is now provided as follows:
From the chart, we can identify the following:
52 week range 55.61 - 74.42
The above implies that:
The low point = 55.61
The high point = 74.42
Therefore, we have:
Percent increase in the price of the stock = ((The high point - The low point) / The low point) * 100 = ((74.42 - 55.61) / 55.61) * 100 = 34%
Therefore, the percent increase (to the nearest whole percent) in the price of the stock you would have experienced is 34%.
Which of the following is an example of a divisional organizational structure?
Answer: b
Explanation:
Sommers Co.'s bonds currently sell for $1,080 and have a par value of $1,000. They pay a $100 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,125. What is their yield to maturity (YTM)
Answer:
9.01%
Explanation:
Calculation to determine their yield to maturity (YTM)
We would be using financial calculation to determine their yield to maturity (YTM)
N =15 years
PV=$1,080
PMT=$100
FV=$1,000
Hence,
I/YR=YTM=9.01%
Therefore their yield to maturity (YTM) is 9.01%
A1 Consulting Services (A1CS) provides various types of consulting services throughout Fiji. It
uses job costing system to accumulate the cost of client projects.
Traceable costs are charged directly to individual clients.
Other costs incurred by A1CS, but not identifiable with specific clients, are charged to jobs by
using a predetermined overhead rate.
Clients are billed for directly chargeable costs, overhead and a markup for the profit margin.
The following costs have been anticipated for the coming year:
Cost Percentage of cost directly
traceable to clients
Professional staff salaries $3 000 000 85%
Administrative support staff 800 000 60%
Travel 400 000 80%
Photocopying 90 000 90%
Other operating costs 200 000 75%
Total $4 490 000. A1CS’s management wishes to make a profit of $1 250 000 for the firm and plans to add
percentage markup on total cost to achieve that figure.
On 23 May, A1CS completed work on a project for Mango Manufacturing. The following costs
were incurred:
Cost
Professional staff salaries $55 000
Administrative support staff 5 000
Travel 6 000
Photocopying 1 200
Other operating costs 2 800
Note: If rounding off is required, round off your figures to 2 d.p.
Required:
1. Determine A1CS’s total traceable costs for the coming year and the firm’s total
anticipated overhead. (4 marks)
2. Calculate the predetermined overhead rate, assuming the cost driver is traceable costs.
(3 marks)
3. What percentage of cost will A1CS add to each job to achieve its profit target? (3 marks)
4. Determine the total cost of the Mango Manufacturing project. (5 marks)
5. How much Mango Manufacturing would be billed for the services performed? (5 marks)
6. Compare the approach used in requirement 5 with client billing system described in
Topic 8. (4 marks)
7. Only 75 per cent of A1CS’s other operating cost is directly traceable to specific client
projects. Identify three costs that would be included in other operating costs and would
be difficult to trace to clients. (3 marks)
8. 85 per cent of the professional staff cost is directly traceable to specific client projects.
Give two reasons that would explain why this figure isn’t 100 per cent. (3 marks)
Answer:
A1 Consulting Services (A1CS)
1. A1CS's total traceable costs for the coming year = $3,581,000 and
Total anticipated overhead = $909,000
2. Predetermined overhead rate = $0.254 per traceable cost.
3. The percentage of cost that A1CS will add to each job to achieve its profit target is:
= 27.8%
4. The total cost of the Mano Manufacturing project is:
= $87,780
5. Mango Manufacturing would be billed $112,183.
6. The approach in requirement 5 is the markup approach, which is based on a percentage added to the total costs. It is different from a margin approach, which adds a percentage of the selling price to the total costs.
7. Other operating costs may include Supervisor's salaries, Equipment depreciation expenses, and Factory property taxes.
8. There may be other professional staff who work on the general projects, whose costs cannot be directly traceable to specific client projects.
Some costs incurred under professional staff may be indirect costs, for example, training of professional staff.
Explanation:
a) Data and Calculations:
Cost Percentage of cost directly
traceable to clients
Professional staff salaries $3 000 000 85% $2,550,000 ($3m*85%)
Administrative support staff 800 000 60% 480,000 ($.8m*60%)
Travel 400 000 80% 320,000 ($.4m*80%)
Photocopying 90 000 90% 81,000 ($90,000*90%)
Other operating costs 200 000 75% 150,000 ($0.2m*75%)
Total $4 490 000
Total traceable costs $3,581,000
Total anticipated overhead = $909,000 ($4,490,000 - $3,581,000)
Predetermined overhead rate = $909,000/$3,581,000 = $0.254
Target profit = $1,250,000
Percentage of cost to add to achieve target profit = 27.8% ($1,250,000/$4,490,000 * 100)
Costs incurred for a project for Mango Manufacturing:
Professional staff salaries $55 000
Administrative support staff 5 000
Travel 6 000
Photocopying 1 200
Other operating costs 2 800
Total traceable costs $70,000
Overhead costs ($0.254) 17,780
Total costs = $87,780
Markup (27.8%) = 24,403
Total billing for services $112,183
The WACC is used to _______ the expected cash flows when the firm has ____________. Select one: a. decrease; short term financing on the balance sheet b. discount; short term financing on the balance sheet c. discount; debt and equity in the capital structure d. increase; debt and equity in the capital structure
Answer:
c
Explanation:
WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate)
weight of debt = D / (D + E)
It is used to discount the expected cash flows when the firm has debt and equity in the capital structure. It is suitable because in the calculation of WACC, debt and equity are included
For Team Andrews calculate both Market Capitalization and Earnings per Share (EPS) in the last round. Show calculations. In the next round, what would EPS be for Team Andrews be if Profits increased by 10% relative to this year and Andrews bought back 679,391 shares
Answer:
$14.32
Explanation:
Note: See below for attached picture for the question
Market Capitalization = Total outstanding shares * Last closing price of share
Market Capitalization = 2,679,391*$86.73
Market Capitalization = $232,383,581.43
Earning Per share = Profit after tax and Dividend / Total outstanding shares
Earning Per share = $26,054,226 / 2,679,391
Earning Per share = $9.72
The EPS when profits are increased by 10% ans shares are bought back is calculated as follows:
New profits = $26,054,226 + (10%*$26,054,226)
New profits = $26,054,226 + $2,605,422.60
New profits = $28,659,648.60
Total outstanding shares = 2,679,391 - 679,391
Total outstanding shares = 2,000,000
EPS = New profits / Total outstanding shares
EPS = $28,659,648.60/2,000,000
EPS = $14.32
The idea of rational expectations suggests that :_________
a) It is unrealistic for Congress to balance the federal budget during a recession.
b) Discretionary policies and fine-tuning can move the economy to full employment.
c) Economic policies are ineffective if the policies are anticipated.
Answer:C
Explanation:The theory believes that because people make decisions based on the available information at hand combined with their past experiences, most of the time their decisions will be correct.
Here are incomplete financial statements for Cullumber Company. Calculate the missing amounts.
CULLUMBER COMPANY
Balance Sheet
Assets
Cash $ 14,000 Inventory 17,000 Buildings 38,000 Total assets $69,000 Liabilities and Stockholders' Equity Liabilities Accounts payable $ 5,600 Stockholders' Equity Common stock enter a dollar amount
(a) Retained earnings enter a dollar amount
(b) Total liabilities and stockholders' equity $69,000 CULLUMBER COMPANY Income Statement Revenues $85,400 Cost of goods sold enter a dollar amount
(c) Salaries and wages expense 10,270 Net income $enter a dollar amount
(d) CULLUMBER COMPANY Retained Earnings Statement Beginning retained earnings $19,000 Add: Net income enter a dollar amount
(e) Less: Dividends 4,770 Ending retained earnings $34,000
Answer:
(a) Common Stock = $29,400. (b) Retained earnings = $34,000, (c) Cost of goods sold = $55,360, (d) Net Income = $19,770, (e) Net Income =$19,770
Explanation:
Note: See organized question as attached below to aid understanding
Net income = Ending retained earnings + Dividends - Beginning retained earnings
Net income = $34,000 + $4,770 - $19,000
Net income = $19,770
Net income = Revenue - Cost of goods sold - Salaries and wages expense
$19,770 = $85,400 - Cost of goods sold - $10,270
Cost of goods sold = $85,400 - $19,770 - $10,270
Cost of goods sold = $55,360
Total liabilities and stockholders equity = Accounts payable + Common stock + Retained earnings
$69,000 = $5,600 + Common stock + $34,000
Common stock = $69,000 - $5,600 - $34,000
Common stock = $29,400
Missing amounts :
Common Stock = $29,400
Retained earnings = $34,000,
Cost of goods sold = $55,360
Net Income = $19,770
Net Income = $19,770
Net income
= Ending retained earnings + Dividends - Beginning retained earnings
= $34,000 + $4,770 - $19,000
= $19,770
Net income
= Revenue - Cost of goods sold - Salaries and wages expense
$19,770 = $85,400 - Cost of goods sold - $10,270
Cost of goods sold
= $85,400 - $19,770 - $10,270
= $55,360
Total liabilities and stockholders equity
= Accounts payable + Common stock + Retained earnings
$69,000 = $5,600 + Common stock + $34,000
= $69,000 - $5,600 - $34,000
= $29,400
Learn more about calculation of retained earnings here: https://brainly.com/question/5709809
A bank has an 8 percent reserve requirement, $10,000 in deposits, and has loaned out all it can, given the reserve requirement. a. It has $1,250 in reserves and $8,750 in loans. b. It has $8,000 in reserves and $2,000 in loans. c. It has $800 in reserves and $9,200 in loans. d. It has $80 in reserves and $9,920 in loans.
Answer:
c. It has $800 in reserves and $9,200 in loans.
Explanation:
Calculation to determine the given reserve requirement
Reserves=8%*$10,000
Reserves=$800
Loans=$10,000-$800
Loans=$9,200
Therefore given the reserve requirement It has $800 in reserves and $9,200 in loans.
The following persons own Schlecht Corporation, a non-U.S.entity.
Jim, U.S. individual 35%
Gina, U.S. individual 15%
Marina, U.S. individual 8%
Pedro, U.S. individual 12%
Chee, non-U.S. individual 30%
None of the shareholders are related. Subpart F income for the tax year is $300,000. No distributions are made. Which of the following statements is correct?
a. Schlecht is not a CFC.
b. Chee includes $90,000 in gross income.
c. Marina is not a U.S. shareholder for purposes of determining whether Schlecht is a CFC.
d. Marina includes $24,000 in gross income.
Answer: Marina is not a U.S. shareholder for purposes of determining whether Schlecht is a CFC.
Explanation:
From the options given, the correct statement is that "Marina is not a U.S. shareholder for purposes of determining whether Schlecht is a CFC".
A controlled foreign corporation (CFC) refers to a corporate entity which is duly registered and then conducts business in a different country than where it was registered and where the controlling owners lives.
A controlled foreign corporation (CFC) is a foreign corporation whereby more than 50% of the total voting power is owned by the person.
Roy Micky wants to open a new nakamal (kava bar) in port villa. He knows he is entering a highly competitive market but is determined to give it a ago as it is something his family have always wanted.
There are 96 other Nakamals in port vila that Roy will have to compete with. In addition to this, he does not have an established presence in the market. There are just 2 of his concerns. The others are required to come from you.
1) List and justify (from an operations perspective) 5 key things that he should consider in setting up his business. In answering this question, this of the different chapters that have ccomprised this course - you should get a point from each chapter. 20 marks
NB : This question is asking for 5 points of concern - each carries 4 marks.
Answer:
a) The financial return on investment
b) Demand curve, Is the demand of nakamal is rising or is constant
c) Develop a strategy to create a customer base
d) Devise marketing strategy
e) Value addition in his product and service in order to stand out of others.
Explanation:
a) The financial return on investment
b) Demand curve, Is the demand of nakamal is rising or is constant
c) Develop a strategy to create a customer base
d) Devise marketing strategy
e) Value addition in his product and service in order to stand out of others.
roles of competition policy authorities in south Africa
Answer:
I hope you understand please follow me
On January 2013, Pennington Bancorp acquired $100,000 of marketable securities and classified them as Available for Sale. On March 31, 2013, Pennington prepared its 10-Q and marked the securities down to their market value of $85,000. On April 4, 2013, Pennington sold the securities for $93,000 cash. Which of the following items would be increased by the sale of the marketable securities?
a. Cash from Financing Activities
b. Net Income
c. Marketable Securities
d. Accumulated Other Comprehensive Income
e. Cash from Investing Activities
Answer:
b. Net Income
e. Cash from Investing Activities
Explanation:
Calculation to determine Which of the following items would be increased by the sale of the marketable securities
Using this formula
Gain from investment = Selling price of the security - Value of the security
Let plug in the formula
Gain from investment= $93,000 - $85,000
Gain from investment= $8,000
Based on the above calculation The sell of marketable security will INCREASE CASH which means that CASH FROM INVESTING ACTIVITIES will increase and NET INCOME will increase.
Therefore the items that would be increased by the sale of the marketable securities are :
b. Net Income
e. Cash from Investing Activities
Phil Morris holds an executive position at The Martin Group. Phil has improved the quality of the data gathered by the organization and has also created a model to decrease the cost of managing data while increasing the value of the data gathered. Based on this description, what position does Phil hold at The Martin Group
Answer:
chief data officer (CDO)
Explanation:
A chief data officer is a person in an organisation that uses information as an asset through various practices like analysis, data processing, data mining, or information trading.
He is responsible for data governance within an organisation.
Valuable insights that will be profitable to the organisation are made by the Chief Data Officer.
In the given instance Phil has improved the quality of the data gathered by the organization and has also created a model to decrease the cost of managing data while increasing the value of the data gathered.
