Answer:
encourages investment since people know what they own can't just be taken away from them.
Explanation:
Private property can be described as property that is owned by an individual or group of individuals rather than by the government.
Examples of private property
real estate objects - jewellery, cars, clothespatents copyrightAdvantages of private property
it gives man the incentive to work and encourages investment so as to amass properties
While attending a show you are disturbed by a child behind you who talks incessantly while repeatedly kicking the back of your seat.You respond by occasionally turning around and fidgeting in your seat.What type of conflict-management style are you exhibiting?
A) collaboration
B) competition
C) accommodation
D) avoidance
E) withdrawal
Answer: avoidance
Explanation:
Conflict avoidance occurs when a person avoids conflict by not reacting to it and rather changes the subject or avoids fighting back.
Since the person doesn't confront the child whom talking incessantly while repeatedly kicking the back of the seat but rather occasionally turns around and fidgets in the seat, then the type of conflict-management style being exhibited is avoidance.
3) Assume you decide you should invest at least part of your money in large capitalization stocks of companies based in the United States. What are the advantage and disadvantages of choosing the Bledsoe Large company stock fund compared to the Bledsoe s
Answer:
Advantage : Outperforming the market
Disadvantage : Underperforming in the market
Explanation:
Advantages of choosing Bledsoe Large company stock fund
Bledsoe Large company stock fund is an actively managed fund hence there is the possibility of outperforming in the market as data has shown over the 10 years, when compared with Bledsoe S&P 500 index Fund.
While the disadvantage is also the possibility of underperforming in the market and this is because most mutual funds cannot sustain its outperformance of the market over a very long period of time.
Indicate where the event common stock issued for cash would appear, if at all, on the indirect statement of cash flows. Group of answer choices Operating activities section Investing activities section Financing activities section Does not represent a cash flow
Answer: Financing activities section
Explanation:
The Financing Activities are refered to as the transactions which affect the long-term liabilities and equity of the company.
In the case if the question given, the common stock that's issued for cash would appear in the financing activities section due to the fact that the activity is related to finance and affects the company.
A team of analysts at Amazon is researching the viability of producing a smart watch. How might they estimate potential demand for their smart watch
Solution :
It is given that an analyst team at Amazon is researching the feasibility and the viability of manufacturing a smart watch.
The analyst team must carry out few steps in order to estimate the potential demand for the smart watch. They should begin with customer survey to know for the demand of the watch. Then the team find the total quantity of the product that is demanded by the customers, the third step is to scale the quantities demanded by the survey respondents. The final step is the team should plot and make the demand curve for the watch in the market.
From the list on your right select the letter that contains the word, phrase, name, etc that best matches the word, phrase, name, etc listed on the left. Externality A. Intellectual property rights Negative exteranlity Positive externality The magnitude of market failure National defense Free-rider problem A market producing the socially optimal level of output Can be used to encourage innovations Congested non-toll road Helps transfer social benefit to a private party which is creatingcurve A good is nonexcludable but could be rivalrous or nonrivalrous An example of "There is no such thing as a free lunch. Overproduction E Excludable and rivalrous r. The area of the triangle in a demand and supply model which is formed as a result of negative or positive externality Nonexcludable and rivalrous " Market output will be lower than the socially efficient/optimal level of output At the intersection of the marginal social cost curve and the demand a positive externality d. A the level of output where negative externality is equal to positive externality Decline in production due to external factors such a bad news coverage about a product L. A positive or negative side effect of an action that affects the wellbeing of a bystander (or a third party) M. Subsidy Both nonexcludable and nonrivalrous O. Taxation
Answer:
A - Intellectual Property Rights - can be used for innovations
B - A good is non excludable but could be rivalrous or non rivalrous. - Free rider problem
C - An example of "There is no such thing as a fee lunch" National Defense
D - Overproduction - Negative externality
E - Excludable Rivalrous
F - The area of the triangle in a demand and supply model which is formed as a result of negative or positive externality. - Magnitude of market failure
G - Non excludable and Rivalrous - Free rider problem
H - Market output will be lower than the socially efficient / optimal level of output. - Positive externality
I - At the intersection of marginal social cost curve and the demand curve.
J - The level of output where negative externality is equal to positive externality - Market producing socially optimal level of output.
K - Decline in production due to external factors such as bad news coverage about a product. Negative externality
L - A positive or negative side effect of an action that affects the wellbeing of a bystander or Third party. Externality
M - Subsidy positive externality
N - Both excludable and non rivalrous Congested non troll road
O- Taxation - national defense
Explanation:
When the market is producing optimal level of output then there will be no negative or positive externality. The positive externality is one when a firm cannot attain the full benefits of the decision made by them. Negative externality is one in which there is some undesirable impact of the market condition on the production.
- Màng quấn PE có tính chất hóa học của hydrocacbon không tác dụng trong môi trường có axit, thuốc tím, kiềm.
- Không màu mùi, hòa tan kém trong nhiệt độ cao.
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Derek has the opportunity to buy a money machine today. The money machine will pay Derek $35,847.00 exactly 16.00 years from today. Assuming that Derek believes the appropriate discount rate is 15.00%, how much is he willing to pay for this money machine
Answer:
$3830.78
Explanation:
We are to determine the present value of the lump sum
Present value is the sum of discounted cash flows
$35,847 / (1.15^16) = $3830.78
The following information describes a company's usage of direct labor in a recent period! Actual Hours Used 22000Actual Rate per Hour 15Standard Rate per Hour 14 Standard Hours for Units Produced 23500The direct labor RATE variance is:__________. A. $21,000 Favorable B. $21,000 Unfavorable C. $22,000 Favorable D. $22,000 Unfavorable E. $23,500 Unfavorable The direct labor EFFICIENCY variance is:_______. A. $21,000 Favorable B. $21,000 Unfavorable C. $22,000 Favorable D. $22,000 Unfavorable E. $23,500 Unfavorable
Answer:
Results are below.
Explanation:
Giving the following information:
Actual Hours Used 22,000
Actual Rate per Hour 15
Standard Rate per Hour 14
Standard Hours for Units Produced 23,500
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (14 - 15)*22,000
Direct labor rate variance= $22,000 unfavorable
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (23,500 - 22,000)*14
Direct labor time (efficiency) variance= $21,000 favorable
Match these terms with their definitions.
a. The rate that reflects the provisions of the debt instrument, the credit standing of the borrowing business, and the current conditions in the credit markets and the economy as a whole.
b. The rate found in the debt contract that determines the amount of the interest payment.
c. Occurs when a bondâs issue price exceeds its face value.
d. The amount that must be repaid at maturity.
e. A type of liability which requires the issuing entity to pay the face value to the holder on the maturity date and to pay interest periodically at a specified rate.
f. Occurs when a bond is issued for an amount that is less than the principal.
g. Term referring to the date that a bondâs principal has to be repaid.
1. Bond.
2. Contract, coupon, stated rate.
3. Discount.
4. Face value, par value, principal.
5. Market rate, yield.
6. Maturity.
7. Premium.
Answer and Explanation:
The matching is as follows
a. 5. Market rate, yield. as it represent the debt instrument provisions, credit standing, and the present conditions
b. 2. Contract, coupon, stated rate, this represent that rate that could be find in the contract of the debt that measures the interest payment amount
c. 7. Premium. this is the case when the issue price of the bond is more than the face value
d. 4. Face value, par value, principal. It is the amount that should be repay at the maturity
e. 1. Bond. It is the liability that needs the entity to pay off the face value on the maturity date
f. 3. Discount. It arise when the issue price of the bond is lower than the principal
g. 6. Maturity. it refers to the date when the principal of the bond is repaid
How much should you pay for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for $53.17 one year from now
Answer: $48.33
Explanation:
Using the Gordon Growth model:
Price of stock = Next year dividend / (Required return - growth rate)
Next year price of stock can be used to calculate year 2 dividend:
53.17 = D₂ / ( 16% - 10%)
53.17 * 6% = D₂
D₂ = $3.19
D₂ = D₁ * ( 1 + growth rate)
3.19 = D₁ * ( 1 + 10%)
D₁ = 3.19/ 1.1
= $2.90
Price of stock today:
= 2.90 / ( 16% - 10%)
= $48.33
Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the state where the firm a. is headquartered. b. was formed. c. will receive consistent treatment. d. does business.
Answer: B. Was formed
Explanation:
Limited liability companies that are doing business in the states other than the states that they registered originally may have to seek the status of foreign LLC in such states.
Therefore, since Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the state where the firm was formed. Therefore, the correct option is B.
While dealing with Paving, Ohio will apply the law of the state where the firm does business.
Foreign Limited liability which are formed elsewhere do operate under the the State's regulations and policy.
Business have to be registered with every state regardless of whether they have been in existence elsewhere
When the registration is done, the state regulation, trade policy and rules will be stated to the newly established business in the state.
Therefore, Option D. is correct.
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Using the data below, compute DEBT RATIO.
Using the data below, compute Return on Equity.
Accounts Payable 800
Accounts Receivable 1,100
Capital Stock 2,000
Cash 50
Cost of Goods Sold 6,000
Inventory 1,500
Long-term Debt 1,820
Net Income 950
Property, Plant, and Equipment (net) 3,000
Retained Earnings 1,030
Sales 10,000
Market value of shares 12,000
Answer:
a. Total Liabilities = Accounts Payable + Long-term Debt
Total Liabilities = 800 + 1,820
Total Liabilities = $2,620
Total Assets = Accounts Receivable + Cash + Inventory + Property, Plant, and Equipment (net)
Total Assets = 1,100 + 50 + 1,500 + 3,000
Total Assets = $5,650
Debt Ratio = Total Liabilities / Total Assets
Debt Ratio = $2,620 / $5,650
Debt Ratio = 0.463717
Debt Ratio = 46.37%
b. Return on Equity = Net Income / Shareholder Equity
Return on Equity = Net Income / (Capital Stock + Retained Earnings)
Return on Equity = $950 / ($2,000+$1,030)
Return on Equity = $950 / $3,030
Return on Equity = 0.31353135
Return on Equity = 31.35%
In preparation for developing its statement of cash flows for the year ended December 31, 2018, Millennium Solutions, Inc. collected the following information:
Payment for the early extinguishment of long-term notes (book value: $100 million) $108.1
Sale of common shares 352.1
Retirement of common shares 244.1
Loss on sale of equipment 4.1
Proceeds from sale of equipment 16.1
Issuance of short-term note payable for cash 20.1
Acquisition of building for cash 14.1
Purchase of marketable securities (not a cash equivalent) 10.1
Purchase of marketable securities (considered a cash equivalent) 2.1
Cash payment for 3-year insurance policy 6.1
Collection of note receivable with interest (principal amount, $22) 26.1
Declaration of cash dividends 66.1
Distribution of cash dividends declared in 2020 60.1
Required:
a. Prepare the investing activities section of Millennium's statement of cash flows for 2018.
b. Prepare the financing activities section of Millennium's statement of cash flows for 2018.
Answer and Explanation:
The preparation of the investing and the financing activities is presented below:
1) Investing activities
Proceeds from the sale of equipment 16
Purchase of building -14
Purchase of marketable securities -10
Collection of notes receivable 26
Net cash flow from investing activities 18
2) Financing activities
Payment of long term notes -108
Sales of common share 352
Retirement of shares -244
Issue short term notes payable 20
Dividend paid -60
Net cash flow from financing activities -40
Which of the following is an example of investment? A. a person depositing $ 100 a week to her savings account B. a person's annual medical checkup C. the purchase of new buses by Greyhound D. a student increasing his human capital by attending college
Answer:
C. the purchase of new buses by Greyhound
Explanation:
The investment is the amount that should be invested in order to generate the income
So as per the given situation,the option C is correct as if we puchase the new buses so there is a big investment but after investing into it it generated the income on daily basis
So this should be the example of the investment
Kaspar Industries expects credit sales for January, February, and March to be $205,200, $266,800, and $316,800, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month.
Collections from Customers
Credit Sales January February March
January
February
March
Answer:
Results are below.
Explanation:
Giving the following information:
It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month.
Sales:
January= $205,000
February= $266,800
March= $316,800
Cash collection January:
Sales in cash from January= 205,000*0.75= 153,750
Total cash collection January= $153,750
Cash collection February:
Sales in cash from February= 266,800*0.75= 200,100
Sales in account from January= 205,000*0.25= 51,250
Total cash collection February= $251,350
Cash collection March:
Sales in cash from March= 316,800*0.75= 237,600
Sales in account from February= 266,800*0.25= 66,700
Total cash collection March= $304,300
Instead of issuing securities, Artificial Intelligence Inc. pursues other sources of funds. To obtain venture capital financing, the firm will most likely:_______.a. pool funds to invest in a business venture. b. give up a share of its ownership. c. borrow funds to be returned on a designated maturity date. d. pay periodic dividends.
Answer:
The answer is B.
Explanation:
The correct option is B. - give up a share of its ownership. Venture capitalist invest in a start up ventures or small businesses that they believe have high future prospects.
Because venture capitalists are exprienced business wise and have enough money, they tend to make or provide managerial decisions. The business will be in form of partnership, hence, Artificial Intelligence Inc. giving up part of its ownership.
It is not a must venture business pay a periodic dividend but business capitalist share in the profit or loss of the business.
The model in which managers use their organization's existing core capabilities to expand into foreign markets is called the
Answer:
international model
Explanation:
In the case when the managers use the core capabilities of the organization in over to diversify into the foreign markets so this we called as the international model. As due to this the organization could capture the foreign market share this result in increased in the sales of the organization
So as per the given situation, the above represent the answer
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1:
1. 70,000 shares of $14 par common stock.
2. 7,500 shares of $100 par, 7 percent, non-cumulative preferred stock.
On June 10, Weaver Corporation declared the annual cash dividend on its 7,500 shares of preferred stock and a $2 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20.
Prepare general journal entries to record the declaration and payment of the cash dividends.
Answer:
Preferred shareholder (7,500*$100)*7% $52,500
Common shareholder (70,000×$2) $140,000
Total dividend $192,500
Date General Journal Debit Credit
10 June Dividend $192,500
To dividend payable $192,500
(To record dividends payable)
20 June No entry required
01 July Dividend payable $192,500
To cash $192,500
(To record dividend payment)
31 Dec Retained earning $192,500
To dividends $192,500
(To close dividend account)
The area of accounting aimed at serving the decision-making needs of internal users is: Group of answer choices External auditing. SEC reporting. Managerial accounting. Financial accounting.
Answer:
Managerial accounting
Explanation:
Managerial accounting can be regarded as accounting practice involving identification as well as measurement and interpretation of financial information and communication of it to managers so that it can be used to achieve organization's goals. It should be noted that the The area of accounting aimed at serving the decision-making needs of internal users is Managerial accounting
Ricky is not in a consumer equilibrium. Given the prices of goods, Ricky has allocated all his income such that his marginal utility per dollar spent is ________ for ________ goods.
Answer:
The options are
A) as small as possible; all
B) equal; all
C) equal; normal
D) maximized; all
The answer is B) equal; all
Ricky not being in a consumer equilibrium and he considering the prices prices of goods means he allocated all his income in such a way that entails his marginal utility per dollar spent is equal for all goods.
This is to ensure that he cuts cost and maximizes his spending power.
During March, Pendergraph Corporation incurred $65,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $67,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:
Answer: Credit to manufacturing overhead of $67000.
Explanation:
The journal entry to record the application of Manufacturing Overhead to Work in Process would be:
Debit Work in Progress $67000
Credit Manufacturing overhead $67000.
( To record the application of manufacturing overhead to work in process).
The June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respect to conversion. During June, 37,500 units were started into production. The June 30 work in process inventory consisted of 8,000 units that were 100% complete with respect to materials and 40% complete with respect to conversion. 3. How many units were completed and transferred to finished goods during the period?
Answer:
The units completed and transferred to finished goods during the period were:
= 34,500 units.
Explanation:
a) Data and Calculations:
Units Materials Cost Conversion Cost Total
Beginning work in process 5,000 $16,000 $12,000 $28,000
Degree of completion of WIP 100% 50%
Units started 37,500
Units available 42,500 (5,000 + 37,500)
Ending work in process 8,000 100% 40%
Units completed 34,500 (42,500 - 8,000)
Equivalent units using the weighted average method:
Materials Conversion
Units completed and transferred out 34,500 (100%) 34,500 (100%)
Ending work in process at June 30 8,000 (100%) 3,200 (40%)
Total equivalent units 42,500 36,700
"In 2012, Canadian farmers did not suffer from drought conditions that affected the United States, but they did enjoy the higher corn prices. Canadian farmers reacted to the higher price by planting more corn. Suppose that the price of corn increased by 30 percent and the Canadian farmers increased the quantity of corn they supply by 20 percent. The supply of corn is"
Answer: D) inelastic.
Explanation:
To find out the elasticity of the supply of corn, use the Price Elasticity of Supply (PES) formula. The price elasticity of supply shows how much quaintly supplied would change by if there was a change in price.
Price elasticity of supply = Change in quantity supplied / Change in price
= 20% / 30%
= 0.66
When the Price elasticity of supply is less than one, the supply is said to be inelastic. The PES here is less than 1 so corn is inelastic.
Vincenzo Martin and Sasha Boudrakis have started a new firm, The Fan Base. Vincenzo is a well-known marketing guru who advises major league sports franchises on how to maximize the revenue from their teams' brands and logos. Sasha, meanwhile, is mostly silent in the operation. He has invested $2 million to get The Fan Base off the ground, and in return he receives 25% of the firm's annual profits. The Fan Base is organized as a Group of answer choices corporation. limited liability company (LLC). sole proprietorship. general partnership. limited partnership.
Answer: limited partnership
Explanation:
With the description given in the question, the The Fan Base is organized as a limited partnership. A limited partnership has a general partner, whom has an unlimited liability and a limited partner.
A limited partnership is when two or more partners go into business together, and in this case, the limited partners will be liable only up to the amount that they invested in the business.
Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017, 11,250 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.
Cost Element Standard (per unit) Actual
Direct materials 8 yards at $4.40 per yard $375,575 for 90,500 yards
($4.15 per yard)
Direct labor 1.2 hours at $13.40 per hour $200,925 for 14,250 hours
($14.10 per hour)
Overhead 1.2 hours at $6.10 per hour $49,000 fixed overhead $37,000 variable
overhead (fixed $3.50; variable $2.60)
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400
Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round answers to 0 decimal places, e.g. 125.)
Answer: See explanation
Explanation:
1. The total, price, and quantity variances for materials will be:
Actual Production = 11250
Standard Quantity of Direct Material Required per unit = 8
Standard Quantity of Direct Material required (SQ) = 11250*l × 8 = 90000
Standard Price per Yard (SP) = 4.4
Actual Direct Material (AQ) = 90500
Actual Price per Pound (AP) = 4.15
Total Material Variance:
= (SP × SQ) - (AP × AQ)
= (4.40 × 90000) - (4.15 × 90500)
= 396000 - 375575
= 20425
Direct Material Price Variance:
= AQ × (SP - AP)
= 90500 × (4.40 - 4.15)
= 90500 × 0.25
= 22625 Favourable
Direct materials quantity variance:
= SP × (SQ - AQ)
= 4.40 × (90000 - 90500)
= 4.40 × -500
= -2200 Unfavourable
2. The total, price, and quantity variances for labor will be:
Actual Production = 11250
Standard Hours Required per unit = 1.2
Standard Hours required (SH) = 11250 × 1.20 = 13500
Standard Rate per Hour (SR) = 13.4
Actual Hours required (AH) = 14250
Actual Rate per Hour (AR) = 14.1
Total Labour Variance:
= (SR × SH) - (AR × AH)
= (13.40 × 13500) - (14.10 × 14250)
= 180900 - 200925
= -20025 Unfavourable
Dircet Labour RateVariance:
= AH × (SR - AR)
= 14250 × (13.40 - 14.10)
= 14250 × -0.7
= -9975 Unfavourable
Direct Labour efficiency variance:
= SR × (SH - AH)
= 13.40 × (13500 - 14250)
= 13.40 × -750
= -10050 Unfavourable
Crane Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020.
1/2/20 Purchased patent (9-year life) $387,900
4/1/20 Purchase goodwill (indefinite life) 341,000
7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 421,000
8/1/20 Payment of copyright (5-year life) 145,200
9/1/20 Research and development costs 211,000
$1,506,100
Required:
Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles.
Answer:
Date Account title Debit Credit
12/31/2020 Patent $387,900
Goodwill $341,000
Franchise $421,000
Copyright $145,200
Research and Devel. Expense $211,000
Intangible Assets $1,506,100
The individual intangible asset accounts will be debited as shown above. Research and Development costs are not to be capitalized however according to U.S. GAAP and so will go to expenses.
1- Introduction to Business class is to observe the use of groups in a large manufacturing business. The students notice that most groups are arranged by reporting relationships. Bill discovers a group of managers who have been placed together to study and recommend a course of action on a flextime schedule for employees. Jane finds that the executives of the company have formed a team consisting of themselves, some middle managers, and a few hourly employees to work on improving work processes and efficiency within the company. This group has been in existence for 5 years and is going strong . The group of managers that Bill discovers is an example of:
A) an informal interest group.
B) a formal group.
C) A fun group.
D) a quality group.
Answer:
Option B (a formal group) is the correct approach.
Explanation:
The formal groupings are created purposefully as well as deliberately together to focus group members' continued efforts, in particular their workers, towards achieving their corporate goals.It must be utilized to aid this same right decision-making, even though many persons come up with competing processes and strategies which would have been seen as superior choices.The other given choices are not connected to the given instance. So the above is the right choice.
The Upstart Company has the following production function.
Number of Workers Number of Cases Produced
0 0
1 10
2 19
3 26
4 31
5 34
If the company hires 4 workers, which of the following could be the real wage rate?
a. 2
b. 4
c. 6
d. 8
Answer:
b. 4
Explanation:
The computation of the real wage rate is as follows:
Number of workers Number of cases produced Marginal product
0 0 -
1 10 10
2 19 9
3 26 7
4 31 5
5 34 3
At optimal MP = real wage rate.
So,
For 4th worker , MP is 5
And for 5th worker ,MP is 3
So in the case when we hire 4 workers so the real wage rate should lies in between of 3 and 4
Therefore the real wage rate is 4
Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.) a.Calculate the OCF. (Do not round intermediate calculations.) b.What is the depreciation tax shield
Full question:
Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.)
Sales $ 687,900
Costs $442,800
Depreciation $115,400
EBIT $
Taxes (30%)
Net income $
OCF
What is the depreciation tax shield?
Answer:
Operating Cash Flow(OCF)= $206190
Depreciation tax shield = $34620
Explanation:
To calculate Depreciation tax shield:
Depreciation×tax rate= $115400×0.30=$34620
Operating Cash flow(OCF)= Earnings before interest and taxes(EBIT)+depreciation - income tax expense
So we calculate EBIT and Income tax expense
EBIT= Sales - cost of good sold - depreciation expense
= $ 687,900-$442,800-$115,400= $129,700
Income tax expense= (Sales - cost of goods sold - depreciation expense) × tax rate
=($687900-$442800-$115400)×0.30
=$38910
Therefore, Operating Cash flow(OCF)= $129,700+$$115,400-$38910= $206190
During March, Zea Inc. transferred $55,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $61,000. The journal entries to record these transactions would include a:
Answer:
See below
Explanation:
Given the above information, the journal entries to record these transactions would be ;
Finished goods Dr $55,000
______ Work in process Cr $55,000
(Being record of transfer from work in process to finished goods)
Cost of goods sold Dr $61,000
__________ Finished goods Cr $61,000
(Being record of cost of goods sold)
