Question Completion:
Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy.
Year 1 Year 2
Amounts billed to clients for services rendered $184,000 $234,000
Cash collected from clients 153,000 183,000
Cash disbursements:
Salaries paid to employees during the year 83,000 93,000
Utilities 26,500 33,000
Purchase of insurance policy 57,900 0
In addition, you learn that the company incurred Utility costs of $31,500 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the Insurance policy covers a three-year period.
Answer:
1. Net operating cash flow for
Year 1 Year 2
Cash collected from clients 153,000 183,000
Cash disbursements:
Salaries paid to employees during the year (83,000) (93,000)
Utilities (26,500) (33,000)
Purchase of insurance policy (57,900) 0
Net operating cash flow ($14,400) $57,000
1b. Amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets:
Year 1 = $31,000
Year 2 = $82,000
2. Income Statement for the years ended December 31, Year 1 and Year 2:
Year 1 Year 2
Service Revenue $184,000 $234,000
Expenses:
Salaries 83,000 93,000
Utilities 31,500 28,000
Insurance expense 19,300 19,300
Total expenses 133,800 140,300
Net income before tax $50,200 $93,700
Explanation:
Calculations:
Accounts Receivables:
Year 1
Bill to clients $184,000
Cash collected 153,000
Balance $31,000
Year 2
Balance $31,000
Bill to clients $234,000
Cash collected 183,000
Balance $82,000
Insurance Expenses for each year = $57,900/3 = $19,300
Utilities Incurred:
Year 1 = $31,500
Paid 26,500
Payable 5,000
Year 2
Paid 33,000
less Yr, 1 5,000
Incurred $28,000
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit.
Manufacturing costs
Direct materials per unit $60
Direct labor per unit $22
Variable overhead per unit $8
Fixed overhead for the year $528,000
Selling and administrative costs
Variable selling and administrative cost per unit $11
Fixed selling and administrative cost per year $105,000
Required:
Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.
Answer and Explanation:
The preparation of the income statement using absorption costing is as follows:
Sales (36,000 units at $140) $5,040,000
Less: Cost of goods sold
Direct materials (36,000 units at $ 60) $2,160,000
Direct labor (36,000 units at $22) $792,000
Variable overhead (36,000 units at $8) $288,000
Fixed Overhead (36,000 units at $12) $432,000
Cost of goods sold $3,672,000
Gross margin $1,368,000
Less:
Selling, general and administrative expenses:
Variable selling and administrative expenses (36,000 x $11) $396,000
Fixed selling and administrative expenses $105,000
Net income (loss) $867,000
abburi Company's manufacturing overhead is 40% of its total conversion costs. If direct labor is $86,400 and if direct materials are $23,200, the manufacturing overhead is:
Answer:
Manufacturing overhead= $57,600
Explanation:
To calculate the Conversion costs, we need to use the following formula:
Conversion costs= direct labor + manufacturing overhead
Now, if direct labor is 60% of conversion costs, then:
Conversion costs= direct labor / (1 - 0.4)
Conversion costs= 86,400 / 0.6
Conversion costs= $144,000
Finally, we determine the manufacturing overhead:
Manufacturing overhead= 144,000 - 86,400
Manufacturing overhead= $57,600
Suppose that the external cost associated with chewing gum (sticky sidewalks) is 0.5 cents per packet chewed. Most economists would suggest:
Answer:
Doing nothing. Ignore small external costs because the cost of administering a chewing gum tax is likely large relative to the harm prevented
Explanation:
As in the given question it can be seen that the external cost that is attached with the chewing cume would not even a cent as it is only 0.5 cents. Here the value is negligible if the tax is t be charged on this than it would not generate any revenue instead of this the cost of administrative would become high
Therefore the first option is correct
Question
Given that Janet is collecting data on favorite sports teams, what type of data is she working with?
Answer:
using data to increase revenue and to enhance the fan experience. When ticket sales and attendance are down, it is the sports analyst job to communicate the numbers and changes from previous seasons.
Explanation:
The following costs were incurred in May: Direct materials$40,500 Direct labor$36,700 Manufacturing overhead$28,800 Selling expenses$21,400 Administrative expenses$38,800 Conversion costs during the month totaled:
Answer:
$77,200
Explanation:
Conversion cost is calculated as;
= Direct labor cost + Manufacturing overhead.
Given that;
Direct labor cost = $40,500
Manufacturing overhead = $36,700
Conversion cost = $40,500 + $36,700
= $77,200
Generally, ____ indicate(s) the size of a firm relative to their sector. Group of answer choices sector ratios market share ratio production ratio concentration ratio
Answer:
b. Market share ratio
Explanation:
When the sizes of firms of a particular sector/market are being compared, a common basis for comparison is on the basis of total sales, a larger firm will have a higher ratio of total sales in the sector.
The "concentration ratio" is derived from the market shares. It gives the sum of market shares of the few largest firms in the sector, and is a measure of market power. It is not the correct choice in this case.
Suppose that the rural part of a country is hit by a major earthquake
that destroys 10% of the countries housing stock. The government and private sector respond with a major construction effort to help rebuild houses. Discuss how this episode is likely to affect:
(a) the economic well-being of people in the country, and
(b) the economy’s measured GDP.
Answer:
(a) How this episode is likely to affect the economic well-being of people in the country
In the short-run, there will be an increase in labor demanded, increasing jobs to build homes and repair the damage caused by the earthquake. In the long-run, things will begin to go back to normal.
(b) How this episode is likely to affect the economy’s measured GDP
In this case, GDP measurements will shift causing less of an input in private spending and an increase in government spending due to subsidies to increase home-building.
On June 1, 2017, Vaughn Manufacturing was started with an initial investment in the company of $22,410 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first month of operations:
Cash $5,420 Notes payable $13,640
Accounts receivable 4,470 Accounts payable 970
Service revenue 8,320 Supplies expense 1,080
Supplies 2,320 Maintenance and repairs expense 680
Advertising expense 400 Utilities expense 220
Equipment 26,820 Salaries and wages expense 2,220
Common stock 22,410
Required:
In June, the company issued no additional stock but paid dividends of $1,710. Prepare an income statement for the month of June.
Answer:
Net profit is $3,720
Retained earning for the month is $2,010.
Explanation:
Income statement can be described as a financial statement that shows revenue, minus expenses and losses of a company in order to show it net profit. This can be prepared as follows:
Vaughn Manufacturing
Income Statement for the month of June 2017
Particulars Amount ($)
Revenue:
Service revenue 8,320
Expenses:
Supplies expense (1,080)
Maintenance and repairs expense (680)
Advertising expense (400)
Utilities expense (220)
Salaries and wages expense (2,220)
Net profit 3,720
Dividends paid (1,710)
Retained earning for the month 2,010
Read "Would You Sign This Tax Return?" on page 1-20. Post your thoughts on why you would or would not sign the return as a preparer.
Answer:
Yes, I would sign the tax return because it would be a benefit and it will prepare you for upcoming events
A mission statement is usually very specific including the company's financial forecast. Group of answer choices True False
Answer:
False
Explanation:
The mission statement is the statement that defines the existence of the organization. The overall goal, how to identify its goals with regard to its operations, what type of products or services the company is dealing, its main customers or market, ist geographical location, etc
It does not involve the financial forecast of the company
Therefore the given statement is false
Consider Miray's decision to go to college. If she goes to college, she will spend $24,000 on tuition, $12,000 on room and board, and $1,900 on books. If she does not go to college, she will earn $16,000 working in a store and spend $8,000 on room and board. Miray's cost of going to college is Group of answer choices $37,900. $45,900. $53,900. $61,900.
Answer:
Total cost of going to college= $45,900
Explanation:
We need to consider the opportunity cost of not working and earning a salary. Of room and board, we will take into account the incremental difference.
Tuituion= $24,000
Room and board= 12,000 - 8,000= $4,000
Books= $1,900
Salary= $16,000
Total cost of going to college= $45,900
You have $33,556.25 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $220,000. You expect to earn 12% annually on the account. How many years will it take to
Answer:
11 years
Explanation:
The computation of the number of years that should be taken is shown below:
As we know that
A = P(1 + r%)^n
here
A = future value
P = present value
r = rate of interest
n = time period.
So, the future value of $33,556.25 is
= $33,556.25× (1.12)^n
In addition to this,
The Future value of the annuity is
= Annuity[(1+rate)^time period-1] ÷ rate
= $5,000 [(1.12)^n-1] ÷ 0.12
Now
$220,000 = $33,556.25 × (1.12)^n + $5,000[(1.12)^n-1] ÷ 0.12
$220,000 = $33,556.25 × (1.12)^n + $41,666.67[(1.12)^n-1]
$220,000 = $33,556.25 × (1.12)^n + $41,666.67 × (1.12)^n - $41,666.67
($220,000 + $41,666.67) = (1.12)^n[$33,556.25 + $41,666.67]
(1.12)^n = ($220,000 + $41,666.67) ÷ ($33,556.25 + $41,666.67)
(1.12)^n = $3.478549866
Now take the log to the both sides
n × log 1.12 = log 3.478549866
n = log 3.478549866 ÷ log 1.12
= 11 years
what are the 5c concepts of Teamworks?
Answer:
To develop a high-performing team, leaders should assess and develop these five behavioral functions with their team members: confidence, communication, coordination, cooperation and collaboration.
Explanation:
please give me a heart
On July 1, 2019, Noble, Inc. issued 9% bonds in the face amount of $10,000,000, which mature on July 1, 2025. The bonds were issued for $9,560,000 to yield 10%, resulting in a bond discount of $440,000. Noble uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2021, Noble's unamortized bond discount should be
Answer:
$322,400
Explanation:
Calculation for At June 30, 2021, Noble's unamortized bond discount
First step is to calculate unamortized bond for 2019-2020
Unamortized bond 2019-2020= $9,560,000 + [($9,560,000 × .1) - ($10,000,000 × .09)]
Unamortized bond 2019-2020=$9,560,000 + [($9,560,000 - $900,000)]
Unamortized bond 2019-2020=$9,560,000 + $56,000
Unamortized bond 2019-2020= $9,616,000
Second step is to calculate Unamortized bond for 2020-2021
Unamortized bond 2020-2021= $9,616,000+ [( × $9,616,000.1) - ($10,000,000 × .09)]
Unamortized bond 2020-2021=$9,616,000 + ($961,600 - $900,000)
Unamortized bond 2020-2021 = $9,677,600
Now let calculate unamortized bond discount
Unamortized bond discount =$10,000,000 - $9,677,600
Unamortized bond discount = $322,400
Therefore At June 30, 2021, Noble's unamortized bond discount should be $322,400
Julie Jefferson is a 16 year old dependent high school student. Julie earns $5,000 from a part-time job. Julie's applicable standard deduction for 2020 that may be taken on her own return is ___________.
Answer: d. $5,350
Explanation:
According to 2020 tax laws, a dependent minor such as Julie Jefferson here can claim a standard deduction that is the greater of:
a. $1,100 or,
b. earned income + $350 so long as it does not exceed $12,400.
Julie's applicable standard deduction is therefore:
= 5,000 + 350
= $5,350
This is greater than $1,100 and so is her applicable standard deduction.
Prepare the following adjusting entries at August 31 for Walgreens. (a) Interest on notes payable of $286 is accrued. (b) Services performed but unbilled total $1,314. (c) Salaries and wages earned by employees of $767 have not been recorded. (d) Bad debt expense for year is $876.
Answer and Explanation:
The adjusting entries are as follows:
a. Interest Expense $286
To Interest Payable $286
(Being the interest expense is recorded)
b. Accounts Receivable $1,314
To Service Revenue $1,314
(Being the service performed but unbilled is recorded)
c. Wages and Salary Expense $767
To Salary and Wages Payable $767
(Being wages and salary expense is recorded)
d Bad Debt Expense $876
To Allowance for Doubtful Accounts $876
(Being the bad debt expense is recorded)
Jarrod receives a scholarship of $26,200 from Riggers University to be used to pursue a bachelor's degree. He spends $15,720 on tuition, $1,310 on books and supplies, $5,240 for room and board, and $3,930 for personal expenses. How much may Jarrod exclude from his gross income
Answer:
$20,960
Explanation:
The amount that excluded from the gross income is as follows:
i. Tuition fee $15,720
ii. Books and Supplies $5,240
Total $20,960
The amount of $20,960 would be excluded from the gross income
And, the other amounts would be included in the gross income
with emphasis on at least five factors, show the importance of scanning the business environment
Answer:
. Identification of strength:
Strength of the business firm means capacity of the firm to gain advantage over its competitors. Analysis of internal business environment helps to identify strength of the firm.
2. Identification of weakness:
Weakness of the firm means limitations of the firm. Monitoring internal environment helps to identify not only the strength but also the weakness of the firm. A firm may be strong in certain areas but may be weak in some other areas. For further growth and expansion, the weakness should be identified so as to correct them as soon as possible.
3. Identification of opportunities:
Environmental analyses helps to identify the opportunities in the market. The firm should make every possible effort to grab the opportunities as and when they come.
4. Identification of threat:
Business is subject to threat from competitors and various factors. Environmental analyses help them to identify threat from the external environment. Early identification of threat is always beneficial as it helps to diffuse off some threat.
5. Optimum use of resources:
Proper environmental assessment helps to make optimum utilisation of scare human, natural and capital resources. Systematic analyses of business environment helps the firm to reduce wastage and make optimum use of available resources, without understanding the internal and external environment resources cannot be used in an effective manner.
Due to increase in GST the supply of Air conditioner decease from 20 units to 10 units at same price this situation leads to what?
Answer:
The answer is "The contraction in supply".
Explanation:
It contributes to supply constriction with manufacturers, which helps to overcome the tax liabilities and decline as product demand only drops as the consequence of a decline in the cost of its product.
It providers prefer, irrespective of high value-added tax or GST, to sustain rates to sustain their clients. The price change contracts credit policies when the prices increase, the certain factors remained amount produced will be increased, which is considered a supply extension.Which of the following are examples of chemical energy being released or stored?
Fireworks burning and exploding in the sky
The wind blowing a seed through the sky
A guitar string making sounds
I only
I and II only
I and III only
I, II, and III
An investor has $20,000 in his trading account and he borrows an additional $20,000 from his broker. He invests the total amount in a stock at $30 per share. Assume the maintenance margin is 40%, at what price will the investor first receive a margin call
Answer: $25
Explanation:
Margin call = Initial price * (1 - initial margin) / ( 1 - maintenance margin)
Initial margin = Personal amount invested / Total amount invested
= 20,000 / (20,000 + 20,000)
= 0.5
Margin call = 30 * (1 - 0.5) / ( 1 - 0.4)
= 30 * 0.8333
= $25
When we assume that hard workers are all honest or that slow workers are not very bright, this is considered projection.
Select one:
True
False
Answer:
It's False :-)Thank you for the questionWhy do you think most of the jobs in the United States and Canada are service jobs?
Answer:
Canada is also important to us for reasons of security.as the United States is to Canada. Explanation:
Through Canada pass the shortest flying routes from our country to Europe and Asia, the two continents that contain most of the world's population, wealth, and power.
Pharoah Chemicals Company acquires a delivery truck at a cost of $35,000 on January 1, 2022. The truck is expected to have a salvage value of $2,900 at the end of its 5-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.
Answer:
$14,000
Year 2 = $8400
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
Depreciation expense in year 1 = 2/5 x $35,000 = $14,000
Book value at the beginning of year 2 = $35,000 - $14,000 = $21,000
Depreciation expense in year 2 = 2/5 x $21,000 = $8400
Required : You are to prepare the Arc's federal income tax return in good form . You are not to complete an Ohio state income tax return . The following and schedules are required and may be found in parts 1
Answer:
D
Explanation:
What are payroll taxes?
Answer:
This is all the information I could find.
Assume an annual interest rate of 8%. You have $1. What is the value of the $1 one year in the future
Answer:
the future value is $1.08
Explanation:
The computation of the future value is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^number of years
= $1 × (1 + 0.08)^1
= $1 × 1.08
= $1.08
Hence, the future value is $1.08
________ can be described as a process by which several possibilities are considered and prioritized, resulting in a clear choice of one option over others. Decision making Delegating Pattern recognition Benchmarking
Answer:
Decision making
Explanation:
Decision making can be described as a process by which several possibilities are considered and prioritized, resulting in a clear choice of one option over others.
Use the company's financial information below to help answer this question: Market Cap. 3000 Cost of Equity from Security Market Line 16.0% Market Value of Debt Outstanding 2000 YTM on Debt Outstanding 8.0% Effective Tax Rate 30% The company's WACC is closest to: Group of answer choices 9.3% 9.8% 10.6% 11.8% 12.8%
Answer:
The company's WACC is closest to 11.8%
Explanation:
Weighted Average Cost of Capital (WACC) is the Cost to the Company arising from the sources of finance. It shows the return required by holders of permanent capital in the company.
WACC = Cost of Equity x Market Weight of Equity + After Tax Cost of Debt x Market Weight of Debt
where,
Cost of Equity = 16.0 %
Market Weight of Equity = 3,000 ÷ 5,000 = 0.60
Market Weight of Debt = 2,000 ÷ 5,000 = 0.40
After Tax Cost of Debt = interest x ( 1 - tax rate) = 8.0% x (1 - 0.30) = 5.60%
therefore,
WACC = 16.0% x 0.60 + 5.60% x 0.40 = 11.84 %
Find the no-arbitrage cross exchange rate. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dollar-yen exchange rate is quoted at $1.00 = ¥120. Group of answer choices ¥192/€1.00 €1.25/¥1.00 €1.00/¥1.92 €1.92/¥100
Answer:
¥192/€1.00
Explanation:
In order to determine the cross rate, we need a formula such that the dollar sign in one exchange rate cancels the other dollar sign in the second exchange such that we are left with both Yen and the Euro as shown by the formula below:
S(€/¥) = S($/¥) / S($/€)
S($/¥) =$1/¥120
S($/€)=$1.60/ €1.00
S(€/¥) =($1/¥120)/($1.60/ €1.00)
if we change the division to multiplication we would have the below
S(€/¥) =$1/¥120*€1.00/$1.60
S(€/¥) =€0.005208333
This means that €0.005208333 =1¥
1¥/ €0.005208333=¥192
