Answer:
Major League Bat Company
1. Journal Entries:
a. Debit Raw Materials Inventory $130,000
Credit Cash Account $130,000
To record the purchase of raw materials.
b. Debit Work in Process $52,540
Debit Manufacturing Overhead $11,500
Credit Raw Materials $64,040
To record materials used.
c. Debit Factory Wages $232,500
Credit Cash Account $232,500
To record factory payroll paid in cash.
d. Debit Work in Process $206,000
Debit Manufacturing Overhead $26,500
Credit Factory Wages $232,500
To record factory payroll costs.
e. Debit Manufacturing Overhead $83,000
Credit Cash Account $83,000
To record additional factory overhead costs.
f. Debit Work In Process $103,000
Credit Manufacturing Overhead $103,000
To allocate factory overhead to production at 50% of direct labor costs.
2. Computation of Equivalent Units of Production:
Materials Conversion Total
Beginning inventory 6,500 units 6,500 5,200
Started 14,000 units 14,000 14,000
Ending inventory 8,000 units 8,000 2,400
Total equivalent unit 22,000 16,400
3. Costs of Production:
Beginning Inventory $2,810 $6,880
Raw materials 52,540 309,000
Total costs $55,350 $315,880
Total equivalent unit 22,000 16,400
Cost per equivalent unit $2.52 $19.26
Total costs:
Started 14,000 $35,280 14,000 $269,640 $304,920
Ending inventory 8,000 20,160 2,400 46,224 $66,384
Total 22,000 $55,440 16,400 $315,864 $371,304
4. Journal Entries:
Debit Finished Goods Inventory $304,920
Credit Work In Process $ 304,920
To record the transfer of goods.
Debit Cost of Goods Sold $273,200
Credit Finished Goods Inventory $273,200
To record the cost of goods sold.
Debit Cash Account $640,000
Credit Sales Revenue $640,000
To record the sale of goods for cash.
5. Ledger accounts:
Raw Materials Inventory
Accounts Titles Debit Credit
Balance $22,000
Cash Account 130,000
Work in Process $52,540
Manufacturing Overhead 11,500
Work In Process
Accounts Titles Debit Credit
Balance $9,690
Raw materials 52,540
Factory Wages 206,000
Manufacturing
Overhead 103,000
Finished Goods Inventory $ 304,920
Balance 66,384
Manufacturing Overhead
Accounts Titles Debit Credit
Raw materials $11,500
Factory wages 26,500
Other overheads 83,000
Work in Process applied $103,000
Underapplied overhead 18,000
6. Income Statement:
For July
Sales Revenue $640,000
Cost of goods sold 273,200
Underapplied overhead 18,000 $291,200
Gross profit $348,800
Explanation:
a) Data and Calculations:
June 30 Balances:
Raw Materials Inventory, $22,000;
Work in Process Inventory, $9,690 ($2,810 of direct materials and $6,880 of conversion);
Finished Goods Inventory, $140,000;
Sales, $0;
Cost of Goods Sold, $0;
Factory Payroll Payable, $0; and
Factory Overhead, $0. 1.
Organizations are often divided into units or departments. Which of these is NOT a common way to organize a company?
Group of answer choices
By function
By product
By employee compensation
By customer
Answer: By employee compensation
Explanation:
In an organization, it should be noted that an organization can be grouped based on the roles performed e.g in an organization, you can find he employees that are related to accounting of the company in the account department, employees involved in sales in the sales department etc.
Employee can also be grouped based on the product sold or based on customers but employees can't be grouped based on employee compensation. Employee compensation is the compensation that an employee gets for working for a particular company.
Bernie and Phil's Great American Surplus store placed an ad in the Sunday Times stating, "Next Saturday at 8:00 A.M. sharp 3 brand new mink coats worth $5,000 each will be sold for $500 each! First come, First served." Marsha LufMin was first in line when the store opened and went directly to the coat department, but the coats identified in the ad were not available for sale. She identified herself to the manager and pointed out that she was first in line in conformity with the store's advertised offer and that she was ready to pay the $500 price set forth in the store's offer. The manager responded that a newspaper ad is just an invitation to negotiate and that the store decided to withdraw "the mink coat promotion." Review the text on unilateral contracts in Section 12(b) of Chapter 12. Decide.
Answer:
Bennie and Phil broke their unilateral contract by not having the coats available for sale.
Explanation:
Unilateral contracts are defined as one in which the party making an offer are the only ones that obligation to pay for specific performance of an action from the offeree.
For example if a person offers to pay anyone to mow their lawn. Any person that agrees to the job does not have a commitment to perform it.
The only commitment is that the offeror will pay once the lawn is mowed.
In the scenario above Bernie and Phil’s Great American Surplus store placed an ad in the Sunday Timesstating, “Next Saturday at 8:00 A.M. sharp 3 brand new mink coats worth $5,000 eachwill be sold for $500 each! First come, first served.” They are the offerors
Marsha now did her part by being first in line to buy the coat.
By not having the coat available for sale Bernie and Phil have broken their unilateral contract
Karen, an automobile mechanic employed by an auto dealership, is considering opening a fast-food franchise. If Karen decides not to acquire the fast-food franchise, any investigation expenses are:
Answer:
The right solution is "Not Deductible".
Explanation:
If everyone's investigation for a company or starting a company fails, costs classified into two broad categories besides you:
Unless you're a person and your effort to start a company isn't successful, there are 2 kinds of investments you have had in attempting to develop yourself in the company.The expenses clients used to have before you made an intention to open a particular business. These would be personal but non-deductible charges. They include other expenses incurred throughout a regular search for something like a company or equity investment opportunity or perhaps a thorough investigation into it. The expenditures you have in your effort to purchase or launch a particular venture. Such charges are capital expenditures, and that as a capital loss, you will subtract them.Which best explains why there are many job opportunities in the Lodging pathway?
O The pathway requires a college education.
O The pathway offers seasonal positions.
O The pathway includes low-paying jobs.
The pathway has a high turnover rate.
Answer:
the pathway includes low-paying jobs.
Explanation:
The pathway has a high turnover rate. Because there are many job opportunities are there, In the lodging pathway.
What is employment?In most cases, employment refers to the status of having a paid job—of being employed. Employing someone is paying them to work. Employees are employed by an employer. Employment can also refer to the act of hiring individuals, as in We're trying to hire more women.
An excessively high turnover rate indicates that more employees than is typical for your industry to have left the company. Depending on the sector you work in, a high turnover rate can mean different things. The anticipated turnover rates fluctuate between industries and nations.
Therefore. The correct option is (D)
Learn more about employment here:
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SY Manufacturers (SYM) is producing T-shirts in three colors: red, blue, and white. The monthly demand for each color is 3,487 units. Each shirt requires 0.75 pound of raw cotton that is imported from the Luft-Geshfet-Textile (LGT) Company in Brazil. The purchasing price per pound is $1.55 (paid only when the cotton arrives at SYM's facilities) and transportation cost by sea is $0.70 per pound. The traveling time from LGT’s facility in Brazil to the SYM facility in the United States is two weeks. The cost of placing a cotton order, by SYM, is $186 and the annual interest rate that SYM is facing is 32 percent of total cost per pound.
a. What is the optimal order quantity of cotton? (Round your answer to the nearest whole number.)
Optimal order quantity pounds
b. How frequently should the company order cotton? (Round your answer to 2 decimal places.)
Company orders once every months
c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?
17-Jun
1-Jul
15-Jul
d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)
Number of orders times
e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)
Annual holding cost $ per year
f. What is the resulting annual ordering cost?
Annual ordering cost $
g. If the annual interest cost is only 5 percent, how will it affect the annual number of orders, the optimal batch size, and the average inventory?
Answer: See explanation
Explanation:
a. The optimal order quantity can be calculated as:
= √2DS/H
where
D = 3 × 12 × 3487 × 0. 75
= 94149
Total cost incurred during purchase
= $1.55 + $0.70
= $2.25
Setup cost (S) = $186
Holding cost
= 32% × $2.25
= 0.32 × $2.25
= $0.72
Optimal order quantity
= √(2 × 94149 × 186)/0.72
= 6974.50
b. This will be calculated as:
Annual demand / EOQ
= 94149/6974.50
= 13.50
The company should order cotton 13.5 times per year.
c. Since the first order is needed on 1-July and lead time is 2 weeks, SYM should place the order before 17th June.
d. This will be:
= Annual demand / EOQ
= 94149/6974.50
= 13.5 orders
e. The resulting annual holding cost will be:
= 0.72 × (6974.50/2)
= 0.72 × 3487.25
= $2510.82
f. The resulting annual ordering will be:
= 94149/6974.50 × $186
= 13.5 × $186
= $2511
3. The last dividend paid by New Technologies was an annual dividend of $1.40 a share. Dividends for the next 3 years will be increased at an annual rate of 8 percent. After that, dividends are expected to increase by 3 percent each year. The discount rate is 16 percent. What is the current value of this stock
Answer:
$12.60
Explanation:
The computation of the current value of the stock is shown below:-
= $1.40 × (1.08) ÷ 1.16 + 1.40 × (1.08)^2 ÷ (1.16)^2 + 1.40 × (1.08)^3 ÷ (1.16)^3 + 1.40 × (1.08)^3 × (1.03) ÷ (0.16 - 0.03) × (1.16)^3
= $1.3034 + $1.2136 + $1.1299 + $8.9520
= $12.60
Therefore for computing the current value of stock we simply solved the above equation.
A credit granted to a customer for returned goods requires a debit to a. Accounts Receivable and a credit to a contra-revenue account. b. Cash and a credit to Sales Returns and Allowances. c. Sales Revenue and a credit to Cash. d. Sales Returns and Allowances and a credit to Accounts Receivable.\
Answer:
d. Sales Returns and Allowances and a credit to Accounts Receivable.
Explanation:
The entry to record credit granted to customer entails :
Decrease the Assets of Accounts Receivable (credit entry) and Decrease the Sales Revenue (debit entry).
The Recognition of Sales Return and Allowance decreases Sales Revenue.
On July 1, 2020, Culver Inc. made two sales. 1. It sold land having a fair value of $902,220 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,419,656. The land is carried on Culver's books at a cost of $590,900. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $402,150 (interest payable annually). Culver Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest.
Record the two journal entries that should be recorded by Sunland Inc. for the sales transactions above that took place on July 1, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No. Date Account Titles and Explanation Debit Credit
1. July 1, 2020
2. July 1, 2020
Answer:
1) July 1, 2020, sale of land
Dr Notes receivable 1,419,656
Cr Land 590,900
Cr Discount on notes receivable 517,436
Cr Gain on sale of land 311,320
Discount on notes receivable $1,419,656 - $902,220 = $517,436
Gain on sale of land $902,220 - $590,900 = $311,320
2) July 1, 2020, service revenue
Dr Notes receivable 402,150
Cr Service revenue 342,218.69
Cr Discount on notes receivable 59,931.31
annual interests = $402,150 x 3% = $12,064.50
discount on notes payable = present value of annual interest = $12,064.50 x 4.9676 (PV annuity factor, 12%, 8 periods) = $59,931.31
The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that had cost $15,000 was sold for $27,000 under terms 2/20, net/30. Customers returned merchandise to Ozark five days after the purchase. The merchandise had been sold for a price of $660. The merchandise had cost Ozark $400. All customers paid their accounts within the discount period. Selling and administrative expenses amounted to $2,835. Interest expense paid amounted to $200. Land that had cost $6,000 was sold for $6,900 cash.
Required
a. Determine the amount of net sales. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
b. Prepare a multistep income statement. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Amounts to be deducted and losses should be indicated with a minus sign.)
c. Where would the interest expense be shown on the statement of cash flows?
Operating activities
Investing activities
Financing activities
d. How would the sale of the land be shown on the statement of cash flows?
A. The full sales price of the land, $9,250, would be shown as a cash inflow from financing activities on the statement of cash flows.
B. The full sales price of the land, $9,250, would be shown as a cash inflow from investing activities on the statement of cash flows.
C. The full sales price of the land, $9,250, would be shown as a cash inflow from operating activities on the statement of cash flows
Answer: See explanation
Explanation:
a. Sales = $27000
Less: sales returned = -$660
Less: discount at 2% = ($27000 - $660) × 2% = -$526.8
Net sales = $25813.2
b. Net sales = $25813.2
Less: cost of goods sold = $15000 - $400 = -$14600
Gross profit = $11213.2
Operating expense:
Less: Selling and administrative expenses = -$2835
Operating income = $8378.2
Non-operating items:
Less: Interest expense = ($200
Add: Gain on land Sales = $900
Net Income= $9078.2
c. The interest expense be shown on the statement of cash flows in the operating expenses section. It'll be recorded in the operating activities.
d. The sale of the land would be under the investing activity as it's capital asset of the business. Therefore, the full sales price of the land, $9,250, would be shown as a cash inflow from investing activities on the statement of cash flows.
Option B is the correct answer.
Robert needs his daily fix of coffee in the mid-afternoon and visits different coffee shops that will give him as much utility as possible, given his $20/month food budget. On Monday, the Blue Coffee Shop was selling espresso shots for $3 each and Robert added 3 shots to his cappuccino. By Friday, the Purple Coffee Shop offered espresso shots for $2 each, while all other prices remained the same, so Robert was bold and added 4 espresso shots to his hot beverage.
Required:
Given this information, plot Robert's demand curve for espresso shots.
Answer:
I drew Robert's demand curve for espresso shots assuming that it was a linear curve since the information contained in the question is limited to that.
A demand curve generally is downward sloping, since an increase in price will usually result in a higher quantity demanded (at least for normal goods).
today ,I am happy I help my grandma
enter a question here
What is the main advantage of diversification as an investment policy?
O It offsets the effects of inflation on investments.
O It reduces risk to investors.
O It guarantees a fixed rate of return on an investment.
O It increases investors' access to their money.
Answer:
I think the best answer would be the second one or B. It reduces risk to investors. Can I get brainliest
Answer:
B is the answer.
Explanation:
If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:
Answer:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Explanation:
If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
For example:
Total estimated overhead= $150,000
Allocation base= direct labor hours
Estimated Total number of direct labor hours= 10,000
Predetermined manufacturing overhead rate= 150,000/10,000
Predetermined manufacturing overhead rate= $15 per direct labor hour
Describe the steps in the process of human resource planning. Explain the relationships between the steps.
Explanation:
The human resources planning process is the set of strategic actions that a company will develop to use organizational human capital in an improved and effective way, that is, they are the necessary actions for attracting and retaining qualified and motivated employees to assist employees. organizational goals and objectives.
There are four main stages of HR planning, they are:
1. Analysis of the offer:
In the first stage, the company's human capital and characteristics are analyzed, that is, everything that concerns the company's workers, how many employees, what position they occupy, what benefits the company offers, etc.
2. Demand forecast:
At this stage, an analysis is made of how the company will deal with the future needs of its employees, such as promotions, layoffs, etc.
After the first stage of identifying the workforce, the HR area needs to deal with the future of human capital in the company, as people will have growth needs in the company and others.
3. Balance supply and demand:
In the third stage, HR seeks to analyze how the company's future demands seen in the second stage will influence the needs of the positions in the organization. Like the possibility of hiring more managers, the need to develop training and development programs, etc.
4. implementation:
Each previous stage of human resource planning will lead the department to identify best practices in this fourth and final stage of HR planning.
In this phase, policies, measures and actions necessary to implement the HR plan are developed so that the company can manage its human capital in the best possible way for its success, protecting the rights and duties of employees supported by development, training actions and solving your needs.
What was the intrinsic value of SmileWhite Co. stock when the analyst was evaluating the stock (that is in year 2008)
Answer: $28.96
Explanation:
Using the Dividend discount model, the intrinsic value will be a sum of the present values of the dividends in addition to the present value when the dividends become constant.
First use CAPM to calculate the required return
= Risk free rate + Beta * (market return - risk free rate)
= 4.5% + 1.15 * (14.5% - 4.5%)
= 16%
The required return will be used to discount the dividends.
2009 dividends = 1.72 * 1.12 = $1.93
2010 = 1.93 * 1.12 = $2.16
2011 = 2.16 * 1.12 = $2.42
Dividends grow at 9% from 2011
Stock terminal value in 2011 = (2.42 * 1.09) / (16% - 9%) = $37.68
[tex]= \frac{1.93}{1.16} + \frac{2.16}{1.16^{2} } + \frac{2.42}{1.16^{3} } +\frac{37.68}{1.16^{3}}\\\\= 28.959397679[/tex]
= $28.96
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $25 million attributable to a temporary book-tax difference of $100 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $64 million. Payne has no other temporary differences. Taxable income for 2021 is $180 million and the tax rate is 25%. Payne has a valuation allowance of $10 million for the deferred tax asset at the beginning of 2021.
Required:
a. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full.
b. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.
Answer:
A. Payne Industries
(In Million)
Dr Income tax expense $54
Cr To Deferred Tax Assets $9
Cr To Income Tax Payable $45
No Journal Entry Required
b. Dr Income tax expense Dr $54
Cr To Deferred Tax Assets $9
Cr To Income Tax Payable $45
Dr Income tax expense $12
Cr To Valuation Allowance - Deferred Tax Assets $12
Explanation:
a. Preparation of the journal entry(s) to record Payne’s income taxes for 2021,
Payne Industries
(In Million)
Dr Income tax expense $54
($45+$9)
Cr To Deferred Tax Assets $9
[($100-$64)*25%]
Cr To Income Tax Payable $45
($180*25%)
(To record income tax expense recorded for 2021 and deferred tax assets reversed for temporary differences reversal )
No Journal Entry Required
b. Preparation of the journal entry(s) to record one-fourth of the deferred tax asset ultimately will be realized
Journal Entries
(In Million)
Dr Income tax expense Dr $54
($45+$9)
Cr To Deferred Tax Assets $9
[($100-$64)*25%]
Cr To Income Tax Payable $45
($180*25%)
(Being income tax expense recorded for 2021 and deferred tax assets reversed for temporary differences reversal )
Dr Income tax expense $12
Cr To Valuation Allowance - Deferred Tax Assets $12
[($64*75%)*25%]
(Being to record valuation allowance for deferred tax assets)
Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator, who chooses the best proposal (effectively giving one side or the other $3 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $300,000) who is effective at preparing the proposal in the best light. If neither hires a lawyer or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win nine tenths, or 0.9, of the time. Use the given information to fit in the expected payoff, in dollars, for each cell in the matrix.
Management (M)
No Lawyer Lawyer
No Lawyer L: M: S L: S M: S
Labor (L) Lawyer L: M: S L: S M: S
The Nash equilibrium for this game is for Management to_____a lawyer, and for Labor to_____a lawyer.
Answer: hire; hire
Explanation:
The Nash equilibrium for this game is for Management to hire a lawyer, and for Labor to hire a lawyer.
At the Nash Equilibrium, there is no incentive for either player to deviate from the strategy they are pursuing as it is the best(most beneficial) one given the strategy of the other player and a situation where there is no cooperation.
If management decides not to hire a lawyer and labor does, management will lose 0.9 of the time, this applies to labor as well. Neither of them will agree to having no lawyer as there is no cooperation and if one does so, the other will seize the opportunity to hire a lawyer and make more.
Assignment 3 Suggested Length: 750 to 1000 words Ethical Theories to Apply: Golden Rule and Virtue Ethics
1. Task You work in the Ethics Department for ABC Company (ABC). Your department is dedicated to advising its employees about their ethical obligations in the corporate setting. You are an internal consultant who provides advice and most importantly, recommendations for action to employees of the firm. All communications you receive in this capacity are confidential. Luke, an employee of ABC, comes to you with the following scenario and asks for your advice. He wants to fully consider the situation. Your task is to advise and recommend a course of action based on the specified ethical lenses and facts as given. Below are the facts that Luke provides to you. ***** Luke has been asked to work on a project that involves developing land recently purchased by ABC to build an adult entertainment retail store. According to the plan, the land is located on the corner of the neighborhood where Owen, Luke’s brother, lives. Luke knows that as soon as the plans for the store are made public, property values for the surrounding neighborhood will decrease significantly. ABC plans to publicly announce the project one month from today. Luke is concerned about his obligations of confidentiality to his company. However, Luke is also very close to Owen, who recently told Luke that he received an offer to sell his house at an "okay" price given the current real estate market. Owen is considering selling but hasn’t made any final decision yet. He wonders if he might get a better offer a few years from now when the real estate market improves. What is the ethical issue, why is this an issue, and what should Luke do about it?
***** For assignment 3, prepare a memo, setting out your analysis and recommendations, that considers ONLY the following two theories: Golden Rule and Virtue Ethics.
Answer:
My answer is a little long, so you will probably need to summarize it.
The ethical issue here is that you work for a company that is about to open a store that will make the price of your brother's house to plummet. Your brother has the option to sell his house right now, but if you tell him to accept the offer, you will be breaching your employment duties.
Is your duty towards your brother more or less important than the duty towards the company?
We can analyze both possible outcomes:
You do not tell your brother and he does not sell his house. After the store is announced, your brother's house will decrease in value. That means that your brother will lose a lot of money, but you complied with the obligation of confidentiality that you have with your company. The downside is that once your brother knows about it, he will hate you for the rest of his life. And the hatred will probably not be limited to only your brother, most, if not all of your family will be very unpleased and terribly mad at you. Your family will probably wonder why your parents didn't abort you?, or are you adopted?, or do you simply hate humanity? On the other hand, you decide that you value your brother and whole family, and you decide to tell him to accept the offer. You will have breached your confidentiality obligation towards the company, but you will have literally saved your brother's financial situation, and you will have saved any type of relationship that you have with your family. Will the company be hurt by your decision? No, it will not make any difference to them. They are announcing the decision in just a few days, so anything that you tell your brother will not make any difference. Since your brother will try to sell his house, he will keep the information to himself, since telling other people will only ruin any possible sale.If we follow the golden rule: do to others what you would like them to do to you, then obviously we should tell Owen about our company's plans. If we were Owen, that information would be really important for us.
If we follow virtue ethics, then it gets a little bit more complicated. Is telling Owen about the new store a virtuous action? Would a virtuous person do it? To be honest, I'm not really sure what exactly is a virtuous person.
What I understand is that virtue ethics is based on who you are, and not what you really will do. So, the question here would be: Are you a good (or virtuous) brother? Are you a good (or virtuous) employee? In this case, you cannot be a virtuous employee and a virtuous brother at the same time, so it depends on which you value the most. Going back to the possible outcomes, I would prefer to be a virtuous brother in this case.
What was the non-live show revenue (merchandising + record sales + etc) for the Amzai Brothers during September-December 2019?
Full question attached
Answer and Explanation:
Answer and explanation attached
Use the information about Billy's Burgers to answer the following question(s):
Billy's Burgers
Figures in $ millions
Income Statement 2010 Balance Sheet 2010
Net Sales 246.0 Assets
Costs exc. Dep. 187.0 Cash 8.0
EBITDA 59.0 Accts. Rec. 21.0
Depreciation 17.2 Inventories 23.0
EBIT 41.8 Total Current Assets 52.0
Interest 12.0 Net PP&E 145.0
Pretax Income 29.8 Total Assets 197.0
Taxes 10.4
Net Income 19.4 Liabilities and Equity Accts.
Payable 18.0 LongTerm Debt 82.0
Total Liabilities 100.0 Total Stockholders' Equity 97.0
Total Liabilities and Equity 197.0
Required:
Using the percent of sales method, and assuming 20% growth in sales, estimate Billy's Burgers' Accounts Receivable for 2011.
a. $21.0 million
b. $18.0 million
c. $25.2 million
d. $21.6 million
Answer:
c. $25.2 million
Explanation:
Billy's Burgers' Accounts receivable 2011 = Accounts receivable 2010 *(1+Growth rate)
Billy's Burgers' Accounts receivable 2011 = $21,000,000 * (1+0.20)
Billy's Burgers' Accounts receivable 2011 = $21,000,000 * (1.20)
Billy's Burgers' Accounts receivable 2011 = $25,200,000.
At December 31, 2013, Weiss Imports reported this information on its balance sheet.
Accounts receivable $600,000
Less: Allowance for doubtful accounts 37,000
During 2014, the company had the following transactions related to receivables.
1. Sales on account $2,500,000
2. Sales returns and allowances 50,000
3. Collections of accounts receivable 2,200,000
4. Write-offs of accounts receivable deemed uncollectible 41,000
5. Recovery of bad debts previously written off as uncollectible 15,000
To do;
1. Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
2. Enter the January 1, 2014, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts and determine the balances. (Post entries in the order of journal entries posted in the previous part)
3. Prepare the journal entry to record bad debt expense for 2014, assuming that aging the accounts receivable indicates that estimated bad debts are $46,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
4. Compute the accounts receivable turnover. (Round answer to 1 decimal place, e.g. 12.5.)
Accounts receivable turnover
Image for At December 31, 2013, Weiss Imports reported this information on its balance sheet. During 2014, the company
times
Compute the average collection period. (Round answer to 1 decimal place, e.g. 12.5.)
Average collection period
Image for At December 31, 2013, Weiss Imports reported this information on its balance sheet. During 2014, the company
days
Answer:
account receivables 2,500,000 debit
sales revenue 2,500,000 credit
--to record sales on account--
sales returns and allowances 50,000 debit
account receivables 50,000 credit
--to record return and allowances--
cash 2,200,000 debit
account receivables 2,200,000 credit
--to record collections--
Allowance for doubtful accounts 41,000 debit
Account receivables 41,000 credit
--to record write-off of receivables--
Account receivables 15,000 credit
Allowance for doubtful accounts 15,000 debit
cash 15,000 debit
account receivables 15,000 credit
--to record recovery of write-off account--
Balance:
Account Receivalbes 809,000
Allowance (before adjustment) 11,000
adjusting entry:
bad debt expense 35,000 debit
Allowance for doubtful accounts 35,000 credit
Allowance after adjustment: 46,000
Account receivables TO: 3.75
Explanation:
Account Receivables:
DEBIT CREDIT
600,000
2,500,000
50,000
2,200,000
41,000
15,000
809,000
Allowance:
DEBIT CREDIT
37,000
41,000
15,000
11,000
Aging: 46,000
Adjustment 35,000
Acc Rec TO
[tex]$$ net sales / net receivables \\\\(sales - returns) / (acc rec - allowance)[/tex]
beginning A/R 600,000 - 37,000 = 543,000
ending A/R 809,000 - 46,000 = 763,000
average: (763,000 + 543,000 ) / 2 = 653,000
(2,500,000 - 50,000) / 653,000 = 3,75191 = 3.75
On January 1, 2021, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $17,500 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by Computer World at a cost of $105,000 and were expected to have a useful life of six years with no residual value. Both firms record amortization and depreciation semi-annually.
Required:
1. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease.
2. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease.
• 1 Record the beginning of the lease for Nath-Langstrom Services.
• 2 Record the lease payment and interest expense for Nath-Langstrom Services.
• 3 Record the amortization expense for Nath-Langstrom Services.
• 4 Record the lease payment and interest expense for Nath-Langstrom Services.
• 5 Record the amortization expense for Nath-Langstrom Services.
• 6 Record the lease revenue received by ComputerWorld Leasing.
• 7 Record the Depreciation expense for ComputerWorld Leasing.
• 8 Record the lease revenue received by ComputerWorld Leasing.
• 9 Record the Depreciation expense for ComputerWorld Leasing.
Answer:
Lessee journal entries:
lease expense 17,500 debit
cash 17,500 credit
--to record lease payment June 30th, 2021--
lease expense 17,500 debit
cash 17,500 credit
--to record lease payment Dec 31st, 2021--
The lessee does not depreciate the equipment as it is not part of their company.
Lessor journal entries:
cash 17,500 debit
lease revenue 17,500 credit
--to record cash collection on Nath-Langstrom June 30th--
depreciation expense 8,750 debit
acc depreciation- equip 8,750 credit
--to record depreciation on leased equipment June 30th--
cash 17,500 debit
lease revenue 17,500 credit
--to record cash collection on Nath-Langstrom Dec 31st--
depreciation expense 8,750 debit
acc depreciation- equip 8,750 credit
--to record depreciation on leased equipment Dec 31st--
Explanation:
This is an operating lease as the equipment returns to the firm at the end of the contract and it is below 75% of the useful life (2 years / 6 years = 33%)
amortization on the equipment:
(cost - salvage value ) / useful life
(105,000 - 0 ) / 6 = 17,500 per year
semiannual depreciation: 17,500 / 2 = 8,750
The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:
a. Beginning balances were: Cash, $98,000; Taxes Receivable, $197,000; Accounts Payable, $56,000; and Fund Balance, $239,000.
b. The budget was passed. Estimated revenues amounted to $1,280,000 and appropriations totaled $1,276,400. All expenditures are classified as General Government.
c. Property taxes were levied in the amount of $940,000. All of the taxes are expected to be collected before February 2021.
d. Cash receipts totaled $910,000 for property taxes and $310,000 from other revenue.
e. Contracts were issued for contracted services in the amount of $104,000.
f. Contracted services were performed relating to $93,000 of the contracts with invoices amounting to $90,400.
g. Other expenditures amounted to $986,000.
h. Accounts payable were paid in the amount of $1,130,000.
i. The books were closed.
Required:
a. Prepare journal entries for the above transactions.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund.
c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation.
Answer:
Please see attached for the detailed solution.
Explanation:
a. Prepare Journal
b. Prepare statement
c. Prepare balance sheet
Please find attached solution to the above questions.
McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of $1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. At the end of the first quarter of 2020, McKinney & Co. reevaluates its receivables. McKinney’s management decides that $8,500 due from Mangold Corporation will not be collectible. This amount was previously included in the allowance account. On April 23, 2020, McKinney & Co. receives a check from Mangold Corporation for $8,500.
Required:
Prepare the journal entry to record the write-off for Mckinney.
Answer:
Debit Allowance for Doubtful Accounts for $8,500;
Credit Accounts Receivable for $8,500.
Explanation:
The journal entry to record the write-off for Mckinney will look as follows:
McKinney & Co.
Journal Entry
Account title and explanation Dr ($) Cr ($)
Allowance for Doubtful Accounts 8,500
Accounts Receivable 8,500
(To record uncollectable amount due from Mangold Corporation.)
Note that since the management of McKinney decided that $8,500 due from Mangold Corporation will not be collectible, this implies that the Accounts Receivable will reduce by that amount. Therefore, the entries to make to show the reduction in the amount of account receivale by $8,500 is to Debit Allowance for Doubtful Accounts for $8,500 and Credit Accounts Receivable for $8,500.
I WILL GIVE BRAINLIEST
What type of manufacturing employee is usually in charge of creating work schedules?
O Operator
O Operations manager
O Assembly line worker
O Quality manager
Answer:
OB
Explanation:
O Operations manager
Alan inherited $100,000 with the stipulation that he "invest it to financially benefit his family." Alan and his wife Alice decided they would invest the inheritance to help them accomplish two financial goals: purchasing a Park City vacation home and saving for their son Cooper’s education.
Vacation Home Cooper’s Education
Initial investment $50,000 $50,000
Investment horizon 5 years 18 years
Alan and Alice have a marginal income tax rate of 32 percent (capital gains rate of 15 percent) and have decided to investigate the following investment opportunities.
Required:
Determine the two annual after-tax rate of return.
Answer:
the question is missing the information about potential investments, so I looked for a similar one:
5 Years 18 Years
Corporate bonds 5.75% 4.75%
(ordinary interest taxed annually)
Dividend-paying stock 3.50% 3.50%
(no appreciation and dividends are taxed at 15%)
Growth stock FV $65,000 FV $140,000
Municipal bond (tax-exempt) 3.20% 3.10%
Alan and Alice should invest in growth stocks since they yield the highest after tax return:
5 years:
FV of growth stocks = $65,000
taxable gain = $65,000 -$50,000 = $15,000 x 15% = $2,250
net gain = $15,000 - $2,250 = $12,750
to determine the yield rate we can use the future value formula:
62,750 = 50,000 x (1 + r)⁵
(1 + r)⁵ = 62,750 / 50,000 = 1.255
⁵√(1 + r)⁵ = ⁵√1.255
1 + r = 1.046
r = 4.6% after tax yield per year
18 years:
FV of growth stocks = $140,000
taxable gain = $140,000 -$50,000 = $90,000 x 15% = $13,500
net gain = $90,000 - $13,500 = $76,500
to determine the yield rate we can use the future value formula:
126,500 = 50,000 x (1 + r)¹⁸
(1 + r)¹⁸ = 126,500 / 50,000 = 2.53
¹⁸√(1 + r)¹⁸ = ¹⁸√2.53
1 + r = 1.053
r = 5.3% after tax yield per year
Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the company's costs is as follows.
Variable manufacturing cost per unit $6
Variable selling and administrative cost per unit 2
Fixed manufacturing overhead per month $300,000
Fixed selling and administrative cost per month 600,000
Required:
a. Determine the company's monthly break-even point in units.
b. Determine the sales volume (in dollars) required for a monthly operating income of $1,200,000.
c. Compute the company’s margin of safety if its current monthly sales level is $2,500,000.
d. Estimate the amount by which monthly operating income will increase if the company anticipates a $100,000 increase in monthly sales volume.
Answer:
a. 75,000 units
b. $1,700,000
c. 0.40 or 40 %
d. $60,000
Explanation:
Break-even point is the level of activity where a firm neither makes a profit nor a loss.
Break-even point (units) = Fixed Costs ÷ Contribution per unit
Where,
Contribution per unit = Unit Selling Price less Variable Costs per unit
= $20 - $6 - $2
= $12.00
Therefore,
Break-even point (units) = ($300,000 + $600,000) ÷ $12.00
= 75,000 units
Sales (dollars) to reach target profit = (Fixed Costs + Target Profit) ÷ Contribution Margin Ratio
Where,
Contribution Margin Ratio = Contribution ÷ Sales
= $12.00 ÷ $20.00
= 0.60
Therefore,
Sales (dollars) to reach target profit = ($300,000 + $600,000 + 1,200,000) ÷ 0.60
= $1,700,000
Margin of Safety = (Sales level - Break-even Sales level) ÷ Sales level
= ($2,500,000 - $1,500,000) ÷ $2,500,000
= 0.40 or 40 %
Calculation of Incremental Monthly Operating Income
Incremental Sales $100,000
Less Incremental Variable Costs (5,000 × $8) ($40.000)
Incremental Contribution $60,000
Less Incremental Fixed Costs $0
Incremental Operating Income $60,000
Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing difficulty for some time. The company’s contribution format income statement for the most recent month is given below:
Sales (13,200 units × $40 per unit) $528,000
Variable expenses 316,800
Contribution margin 211,200
Fixed expenses 235,200
Net operating loss $(24,000)
1. Compute the company’s CM ratio and its break-even point in both unit sales and dollar sales.
2. The president believes that a $6,800 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $89,000 increase in monthly sales. If the president is right, what will be the effect on the company’s monthly net operating income or loss?
3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $31,000 in the monthly advertising budget, will double unit sales. What will the new contribution format income statement look like if these changes are adopted?
4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package would increase packaging costs by $0.60 cents per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $4,100?
5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 each month.
A. Compute the new CM ratio and the new break-even point in both unit sales and dollar sales.
CM ratio 45%
Break-even points in units 183
Break-even points in dollars 7,305
B. Assume that the company expects to sell 20,700 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are.
C. Would you recommend that the company automate its operations?
1. Yes
2. No
Answer:
1. Compute the company’s CM ratio and its break-even point in both unit sales and dollar sales.
CM ratio = 211,200 / 528,000 = 39.96%
break even point in $ = 235,200 / 39.96% = $588,588
break even point in units = 588,588 / 40 = 14,714.7 ≈ 14,715 units
2. The president believes that a $6,800 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $89,000 increase in monthly sales. If the president is right, what will be the effect on the company’s monthly net operating income or loss?
total revenue = $617,000
variable expenses = $617,000 x 60.04% = $370,446.80
contribution margin = $246,553.20
fixed expenses = $242,000
operating profit = $4,553.20
3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $31,000 in the monthly advertising budget, will double unit sales. What will the new contribution format income statement look like if these changes are adopted?
total revenue = $950,400
variable expenses = 26,400 x $24.016 = $634,022.40
contribution margin = $316,377.60
fixed expenses = $266,200
operating profit = $50,177.60
4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package would increase packaging costs by $0.60 cents per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $4,100?
variable expenses per unit = $24.016 + $0.60 = $24.616
contribution margin per unit = $40 - $24.616 = $15.384
break even point + $4,100 gains = 239,300 / 15.384 = 15,555.122 ≈ 15,556 units
5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 each month.
a) contribution margin per unit = $18.984
break even point = 290,200 / 18.984 = 15,286.56 ≈ 15,287 units
break even point in $ = 15,287 x $40 = $611,480
b) not automated automated
sales revenue $828,000 $828,000
variable costs $497,131.20 $435,031.20
contribution margin $330,868.80 $392,968.80
fixed costs $235,200 $290,200
operating income $95,668.80 $102,768.80
c) 2. No
In order for the automation process to be profitable, the number of sales units must increase a lot, and since the company is struggling to sell enough units, I doubt it will work.
1. CM ratio = 211,200 / 528,000 = 39.96%
break even point in $ = 235,200 / 39.96% = $588,588
break even point in units = 588,588 / 40 = 14,714.7 ≈ 14,715 units
2. The total revenue = $617,000
variable expenses = $617,000 x 60.04% = $370,446.80
contribution margin = $246,553.20
fixed expenses = $242,000
operating profit = $4,553.20
3.The entire revenue = $950,400
variable expenses = 26,400 x $24.016 = $634,022.40
contribution margin = $316,377.60
fixed expenses = $266,200
operating profit = $50,177.60
4. variable expenses per unit = $24.016 + $0.60 = $24.616
contribution margin per unit = $40 - $24.616 = $15.384
break even point + $4,100 gains = 239,300 / 15.384 = 15,555.122 ≈ 15,556 units
5. a) contribution margin per unit = $18.984
break even point = 290,200 / 18.984 = 15,286.56 ≈ 15,287 units
break even point in $ = 15,287 x $40 = $611,480
b) not automated automated
sales revenue $828,000 $828,000
variable costs $497,131.20 $435,031.20
contribution margin $330,868.80 $392,968.80
fixed costs $235,200 $290,200
operating income $95,668.80 $102,768.80
c) answer is 2. No
When the automation process to be profitable, the amount of sales units must increase plenty, also since the corporate is struggling to sell enough units.
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https://brainly.com/question/13061040
QUESTION 19
¿Cuál de las siguientes descripciones representa la dimensión masculinidad-feminidad de Hofstede?
01. La dependencia de las decisiones del grupo frente a la dependencia de las decisiones individuales.
2 Todo el mundo debería tener los mismos derechos dente a los que tiene er control para poder tener derecho a los privilegios.
3. La voluntad de tomar niesgos frente a la preocupación con la seguridad en la vida.
4. La asertividad y las preocupaciones materiales frente a la preocupación por las relaciones humanas y los sentimientos.
5. El tiempo es libre versus el tiempo es dinero
Answer:
4. La asertividad y las preocupaciones materiales frente a la preocupación por las relaciones humanas y los sentimientos.
Explanation:
The correct answer for the given question is:
4. La asertividad y las preocupaciones materiales frente a la preocupación por las relaciones humanas y los sentimientos.
Women care more about relationships as compared to men who are assertive in nature and does not care on a priority for a relationship.