Answer:
1.
1 March 2021
Depreciation expense $5000 Dr
Accumulated depreciation-Delivery truck $5000 Cr
2.
1 March 2021
Accumulated depreciation-Delivery truck 140000 Dr
Cash 115000 Dr
Loss on Disposal 9000 Dr
Delivery Truck 264000 Cr
3.
1 March 2021
Accumulated depreciation-Delivery truck 140000 Dr
Cash 141000 Dr
Delivery Truck 264000 Cr
Gain on disposal 17000 Cr
Explanation:
1.
Depreciation expense is the systematic allocation of an asset's cost over its estimated useful life.
The straight line method of depreciation charges a constant depreciation expense each period. The formula for depreciation expense per period under this method is,
Depreciation expense = (Cost - Residual value) / Estimated useful life of the asset
The depreciation expense per year of delivery truck under this method will be,
Depreciation expense per year = (264000 - 24000) / 8 = $30000 per year
The depreciation expense to be charged in 2021 will be for 2 months.
Depreciation expense 2021 = 30000 * 2/12 = $5000
2.
The accumulated depreciation of truck on 1 March 2021 is,
Depreciation for 6 months of 2016 = 30000 * 6/12 = $15000
Depreciation for 4 years (2017 to 2020) = 30000 * 4 = $120000
Depreciation for 2 months of 2021 = $5000
Accumulated depreciation at 1 March 2021 = 15000 + 120000 + 5000
Accumulated depreciation at 1 March 2021 = $140000
Net Carrying value of asset = 264000 - 140000 = $124000
Loss on disposal as asset is sold for less than its carrying value is,
loss on disposal = 115000 - 124000 = - $9000 (loss on disposal)
3.
As the asset is sold for more than its carrying value, the gain on disposal is,
Gain on disposal = 141000 - 124000 = $17000 (gain on disposal)
Isabella files her income tax return 35 days after the due date of the return without obtaining an extension from the IRS. Along with the return, she remits a check for $40,000, which is the balance of the tax she owes.Note: Assume 30 days in a month.Disregarding the interest element, enter Isabella's failure to file penalty and and failure to pay penalty.
Answer:
a. Failure to pay penalty = 400
b. Failure to file penalty = $4,000
Explanation:
The monthly rate for failure to pay penalty is 0.5% while the failure to file penalty.
Since it is assumed that there are 30 days in a month, the 35 days after the due date of the return without obtaining an extension from the IRS is will be counted as 2 months regardless of the fact that the second month is just 5 files when she filed.
Therefore, we have:
a. Failure to pay penalty = $40,000 * 0.5% * 2 = 400
b. Failure to file penalty = ($40,000 * 5% * 2) = $4,000
c. Total penalties = (Failure to file penalty - failure to pay penalty for the same period) + Failure to pay penalty = ($4,000 - $400) + $400 = $4,000.
Therefore, the total penalty Isabella will pay is $4,000.
On October 31, 2018, your company's records say that the company has $20,419.93 in its checking account. A review of the bank statement shows you have three outstanding checks totaling $8,912.25, and the bank has paid you interest of $27.14 and charged you $22.00 in service charges. The bank statement dated October 31, 2018 would report a balance of: (Round your answer to 2 decimal places.)
Answer: $29337.32
Explanation:
The following can be reduced from the question:
Balance as per company's ledger = $20,419.93
Add the outstanding checks= $8912.25
Add interest = $27.14
Less the fee charged by the bank = $22.00
The bank statement dated October 31, 2018 would report a balance of:
=($20,419.93 + $8912.25 + $27.14) - $22.00
= $29337.32
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. If Burkett Corporation achieves the budgeted level of sales, what will be its margin of safety in dollars?
Answer:
Margin Of Safety= $275,862
Explanation:
We can calculate the margin of safety easily by the formula given below
Formula: Margin of safety = Budgeted sales - Breakeven sales
As breakeven sales are not given in the data Firstly we need to find out break even sales in order to calculate margin of safety
Breakeven sales= [tex]\frac{Total fixed cost}{Contribution margin ratio}[/tex]
As you can see in the data fixed cost s given but contribution margin ratio is not
Contribution margin(Sales revenue - All variable cost)= $1,000,000 - ($270,000 + $240,000 + $150,000 + $50,000) = $1,000,000 - $710,000 = $290,000
Sales price per unit = Total sales/Number of units sold
Sales price per unit= $1,000,000/50,000 = $20
Budgeted contribution margin= $290,000/50,000 = $5.80
Contribution margin ratio = Budgeted contribution margin per unit/Sales price per unit
Contribution margin ratio = $5.80/$20 = 29%
Lets put values in breakeven formula to find breakeven sales
Breakeven sales= [tex]\frac{Total fixed cost}{Contribution margin ratio}[/tex]
Breakeven sales=[tex]\frac{210000}{0.29}[/tex]
Breakeven sales= $724,138
Now we have both budgeted sales and breakeven sales, we can easily calculate e of safety
Margin of safety = $1,000,000- $724,138
Margin of safety = $275,862
An investor requires a 3 percent increase in purchasing power in order to induce her to lend. She expects inflation to be 2 percent next year. The nominal rate she must charge is about:__________.a) 1 percent.b) 2 percent.c) 3 percent.d) 5 percent.e) 7 percent.
Answer:
Nominal rate = 5%
Explanation:
Given:
Require rate = 3%
Inflation rate = 2%
Find:
Nominal rate = ?
Computation:
⇒ Nominal rate = Require rate + Inflation rate
⇒ Nominal rate = 3% + 2%
⇒ Nominal rate = 5%
Therefore, The nominal rate she must charge is 5%
Wrong Meds, Again! “It was horrible,” said the distraught client. “No matter how many times I provided the information, no one listened to me. And they obviously didn’t listen to each other either, because they used the wrong meds . . . again.” “Okay, calm down. Now tell me what happened from the beginning,” urged Melanie Torrent, the Quality Assurance Manager for Hope Memorial Hospital. “I got a call at work saying my father was being taken to the hospital from the nursing home. The nursing home always sends a list of medications with the ambulance, but when I got to the emergency room, they were asking my dad what medications he was taking. Of course my dad told them he wasn’t taking any medications and they believed him! He’s sent to the emergency room from a nursing home and they decide it’s reasonable for him not to be on any medications . . . so of course I corrected him and told them to find the medication list. I don’t know whether the ambulance driver forgot to bring in the list, or gave it to the wrong person, or what, but they couldn’t find it. My dad must be on 12 different medications so I wasn’t sure I could remember them correctly. I called the nursing home and we went over the list with them, and then I gave the handwritten list to the nursing station. In the meantime, my dad was admitted to the hospital and moved to a hospital room. Again, a nurse came in with a computer and asked me to tell them what meds he was talking. I tried to tell them that the emergency room had the list, but she said it would be the next morning before the list got updated online. Nevertheless, the nurse called down to the emergency room and was faxed up the list of medications. Only the fax was unreadable, so they came back to me. It was a few hours before his next meds were due, so I drove over to the nursing home, had them make several legible copies of the meds list and drove back to the hospital. I gave the nurse the list, kept one for myself and posted the other on the bulletin board in my dad’s room. The nurse thanked me and said she’d take care of it at the end of her shift. After a long night at the hospital, I woke up the next morning to see my dad hallucinating. I knew immediately what had happened—there’s a certain drug that he has this reaction to. I ran down to the nurse’s station and had her look up the medications he had been given. Sure enough, it was there, along with several other medications he should no longer be taking. Turns out, the list was from two years ago when he had last been admitted to the hospital! How could they have made that kind of mistake—using data from two years ago?” “That is something we’ll look into. More importantly, has your father been taken off the drug?” “Yes.” “And has the medication list been corrected?” “Yes.” “And how is he doing today?” “Fine today, but it could have been more serious and I think you should look into changing your procedures so this doesn’t happen again . . .” “I appreciate you bringing this to my attention. I will speak to the persons involved and I assure you this will not happen again. Hope Memorial prides itself on being a caring and responsible health care provider. Now if you’ll excuse me, I have another client to see . . .” 1. Trace the path of the medication list and denote possible failure points. Construct a process flowchart of the existing process and create a new chart of an improved process. 2. Was the medication error a failure of individuals or a failure of the process? Explain. 3. Think about the different settings, the ambulance, the emergency room, the hospital room, and the nurse’s station. How is data handled in each scenario? Can the process of recording information be changed so that every one is using the same data? How can the accuracy of the data be assured? 4. Given Melanie’s reaction, do you think this error will happen again? Why or why not?
Answer:
Explanation:
no it will not happen agian because she learned from her mistake!
Joy Elle’s Vegetable Market had the following transactions during 2010: Issued $50,000 of par value common stock for cash. Repaid a 6 year note payable in the amount of $22,000. Acquired land by issuing common stock of par value $100,000. Declared and paid a cash dividend of $2,000. Sold a long-term investment (cost $63,000) for cash of $6,000. Acquired an investment in IBM stock for cash of $12,000. What is the net cash provided by financing activities?
Answer:
$26,000
Explanation:
Joy Elle’s Vegetable Market
Cash flow from Financing Activities
Issuance of Stock $50,000
Less: Repaid Note payable $22,000
Less: Paid Dividend $2,000
Net Cash provided by financial activities $26,000
-Acquired land by issuing common stock is a Non cash investing and financing activities under cash flow
-Sold a long-term investment for cash is an investing activities under cash flow
-Acquired an investment in IBM stock for cash is an Investing activities under Cash flow
On average, 5% of credit sales has been uncollectible in the past. At year-end, before adjusting entries, the Accounts Receivable balance is $100,000 and the Allowance for Doubtful Accounts balance is $500 (credit). Net credit sales during the year were $150,000. Using the percentage of credit sales method, the ending balance in the "Allowance for Doubtful Accounts" is
Answer: $7500
Explanation:
The following can be deduced from the question:
Accounts Receivable balance= $100,000
Allowance for Doubtful Accounts = $500
Net credit sales = $150,000.
Percentage-of-sales approach states that the amount of bad debt expense that is recognized by a company will be calculated as a percentage of the credit sales that are generated during the current accounting period.
Using the percentage of credit sales method, the ending balance in the "Allowance for Doubtful Accounts" will be:
= Net credit sales × percentage of credit sales uncollected in the past
= $150,000 × 5%
= $150,000 × 0.05
= $7500
In January the price of dark chocolate candy bars was $2.00, and Aji’s Chocolate Factory produced 80 pounds. In February the price of dark chocolate candy bars was $2.50, and Aji’s Factory produced 110 pounds. In March the price of dark chocolate candy bars was $3.00, and Aji’s Factory produced 140 pounds.a. Calculate the price elasticity of supply for Aji's Chocolate Factory in February b. Calculate the price elasticity of supply for Aji's Chocolate Factory in March c. If Aji's Factory is nearly at full capacity of production in March, what will happen to Aji's Factory price elasticity of supply in April?
Answer:
a. Calculate the price elasticity of supply for Aji's Chocolate Factory in February
1.5 elasticb. Calculate the price elasticity of supply for Aji's Chocolate Factory in March
1.36 elasticc. If Aji's Factory is nearly at full capacity of production in March, what will happen to Aji's Factory price elasticity of supply in April?
If the company is producing at full capacity, then its price elasticity of supply will be perfectly inelastic even if the price increases. This is because any increase in price will not affect the quantity supplied because the company cannot increase it even if they wanted to.Explanation:
price elasticity of supply = % change in quantity supplied / % change in price
It measures the proportional change in the quantity supplied that producers will make given a 1% change in the price of their product.
PES February = [(110 - 80)/80] / [(2.5 - 2)/2] = 0.375 / 0.25 = 1.5
PES March = [(140 - 110)/110] / [(3 - 2.5)/2.5] = 0.273 / 0.2 = 1.36
The rate of economic growth per capita in france from 1996 to 2000 was 1.9% per year, while in korea over the same period it was 4.2%. Per capita real GDP was $28,900 in france in 2003, and $12,700 in korea. Assume the growth rates for each country remain the same.
1. Compute the doubling time for France’s per capita real GDP.
2. Compute the doubling time for Korea’s per capita real GDP.
3. What will France’s per capita real GDP be in 2045?
4. What will Korea’s per capita real GDP be in 2045?
Answer:
36.83 years
16.85 years
$63,710.88
$ 71,490.43
Explanation:
We can use the nper formula in excel to compute the doubling time for the capital real GDP of both countries
=nper(rate,pmt,-pv,fv)
FV is the future real GDP which $28,900*2=$57,800 for France while that of Korea is $25,400 ($12,700*2)
PV is the present real GDP
rate is the economic growth rate of 4.2% in Korea and 1.9% in France
France=nper(1.9%,0,-28900,57800)= 36.83
Korea=nper(4.2%,0,-12700,25400)= 16.85
In 2045 ,which is 42 years from now the real GDP are shown thus:
=fv(rate,nper,pmt,-pv)=fv(1.9%,42,0,-28900)=$63,710.88
=fv(rate,nper,pmt,-pv)=fv(4.2%,42,0,-12700)=$ 71,490.43
2 brothers, Joe and Bob get equal dollar amounts of securities as a gift. Joe immediately sells his securities and deposits the money to a bank account. On the other hand, Bob keeps his securities positions and holds them in a brokerage account. After 5 years, Joe has $10,000 in his bank account, while Bob has $30,000 in his brokerage account. The $20,000 difference between the account balances is explained by:
Answer:
Opportunity cost
Explanation:
The opportunity cost Bob's brother Joe $20,000. Remember, the term Opportunity cost refers to the cost (loss in this context) incurred when one forgoes an alternative best option–holding them in a brokerage account, in place for a less beneficial one.
Thus, Bob chose the best alternative over his brother.
"An investor wishes to buy a new issue of U.S. Government agency bonds. You recommend that the customer purchase Federal Home Loan Bank bonds with a 20 year maturity. An investor who purchases the new issue of Federal Home Loan Bank bonds can expect to pay:"
Answer: A. Par
Explanation:
While US Government bonds are usually sold at auction which means a price different from Par, Federal Agency bonds operate much like Corporate Bonds in their selling procedure. They engage a group of Underwriters called a Selling group which can be made up of large banks and brokers.
These underwriters will then handle everything that have to do with the sale and sell it to the public. Like a Corporate listing, they get a commission from this.
Because of this direct sale by the Underwriter to the public, the Public is most likely to get the offering at Par.
Presented below is the 2018 income statement and comparative balance sheet information for Tiger Enterprises.TIGER ENTERPRISESIncome StatementFor the Year Ended December 31, 2018($ in thousands)Sales revenue $ 15,000 Operating expenses: Cost of goods sold $ 5,000 Depreciation 400 Insurance 900 Administrative and other 3,400 Total operating expenses 9,700 Income before income taxes 5,300 Income tax expense 2,120 Net income $ 3,180 Balance Sheet Information ($ in thousands) Dec. 31,2018 Dec. 31, 2017Assets: Cash $ 620 $ 360 Accounts receivable 830 990 Inventory 810 760 Prepaid insurance 130 35 Plant and equipment 3,200 2,600 Less: Accumulated depreciation (1,160 ) (760 ) Total assets $ 4,430 $ 3,985 Liabilities and Shareholders' Equity: Accounts payable $ 380 $ 520 Payables for administrative and other expenses 380 560 Income taxes payable 360 310 Note payable (due 12/31/2019) 1,380 950 Common stock 1,100 960 Retained earnings 830 685 Total liabilities and shareholders' equity $ 4,430 $ 3,985 Required:Prepare Tiger’s statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You will have to calculate dividend payments). (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)
Answer:
Net Income 3,180
Non-monetary terms:
Depreciation expense 400
Adjusted Income 3,580
Change in Working Capital:
Decrease in A/R 160
Increase in Inv (50)
Increase in Prepaid (95)
Increase Tax /P 50
Decrease in A/P (140)
Decrease in Other /P (180)
Change In Working Capital (255)
Cash-flow From Operating 3,325
Investing
Purchase of Equipment (600)
Financing
Note payable 430
From Issuance of Common Stock 140
Dividends Paid: (3,035)
Cash used for Financing (2,465)
Beginning Cash 360
Cash Flow 260
Ending Cash 620
Explanation:
We first remove the non.monetary concepts from the net income.
Then we adjust for the change in working capital which are the increase and decrease in the current assets and liabilities account
Increase in asset and decrease in liabilities represent cash outflow
while the opposite is true when an asset decrease(convert to cash) or a liability increase (delay of the payment)
Dividends Paid Calculation:
Beginning R/E 685 + 3,180 Income - Ending R/E 830 = 3,035
Trademark dilution laws: Select one: a. protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur. b. are intended at protecting consumers rather than focusing on protecting the investment of trademark owners. c. permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment. d. require the licensee to transfer any inventions it derives from the licensed technology to the licensor.
Answer:
a. protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur.
Explanation:
Trademark dilution laws are rules and regulations that seek to protect the trademarks of well known brands from unauthorized use by other brands, in such a way that the distinctive attribute of the trademark is minimized. Trademark dilution laws are meant to ensure that the main purpose for which a product's trademark is known is meant to stand out significantly in the mind of consumers.
Smaller companies might want to copy the trademark of famous brands for their products which might be different. These laws seek to prevent this act even if it may not cause confusion in the minds of consumers as to which brand owns a product.
On January 1, 2018, White Corporation signed a $ 120,000, four-year, 2% note. The loan required White to make payments annually on December 31 of $ 30,000 principal plus interest.
Required:
a. Journalize the issuance of the note on January 1, 2018
b. Journalize the first payment on December 31, 2018
Answer:
Dr cash $120,000
Cr Notes payable $120,000
Dr interest expense $2,400
Dr notes payable $30,000
Cr cash $32,400
Explanation:
The issuance of the notes payable of $120,000 means that White Corporation's cash inflow has increased by $120,000 while its corresponding loan obligation has also gone up by the same amount.
On 31 December 2018,White Corporation would need to repay $30,000 principal plus interest of $2,400 ($120,000*2%).The interest payment is debited to interest expense while $30,000 repayment is debited to notes payable and cash is credited with the total of $32,400
Montana Mining Co. pays $3,721,000 for an ore deposit containing 1,525,000 tons. The company installs machinery in the mine costing $213,500, which will be abandoned when the ore is completely mined. Montana mines and sells 166,200 tons of ore during the year. Prepare the year-end entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine’s depletion.
Answer:
Ore deposit depletion and Mining machinery depreciation Journal entries
Dr Depletion charge (Ore deposits) 405,528
Cr Accumulated depreciation 405,528
Dr Depletion charge (Ore deposits) 23,268
Cr Accumulated depreciation 23,268
Explanation:
Preparation of the year-end entries to record both the ore deposit depletion and the mining machinery depreciation of Montana Mining Co
Depletion of natural resources can be defined as the way in which the cost of natural resources is apportioned upto the period when it will be utilized which is why they are shown at cost in balance sheet.
The entry is to record depreciation charged on ore deposit depletion. Therefore To record this entry we have to debit depletion charges, and credit accumulated depreciation
Dr Depletion charge (Ore deposits) 405,528
Cr Accumulated depreciation 405,528
Computation of depletion cost per unit:
The depletion cost per unit can be calculated by dividing the net cost of the ore with the total units of capacity :
Depletion/units = Cost - Salvage/ Total unit of capacity
$3,721,000/1,525,000 tons
=$2.44
Hence, depletion per unit is $2.44.
Computation depletion amount on ore deposit:
The depletion amount on ore deposit can be calculated by multiplying the cost per depletion unit with the number of units utilized:
Depletion =Cost/Unit ×Units Utilized
$2.44×166,200 tones
=$405,528
Hence, depletion expenses on ore deposit amounts to $405,528.
The pass entry to record depreciation charged on mining machine :
Dr Depletion charge (Ore deposits) 23,268
Cr Accumulated depreciation 23,268
Computation of depreciation cost per unit:
The depletion cost per unit can be calculated by dividing the net cost of the ore with the total units of capacity :
Depletion/units = Cost - Salvage/ Total unit of capacity
$213,500/1,525,000 tons
=$0.14
Hence, depreciation per unit is $0.14.
Computation of depreciation amount on ore deposit:
The depletion amount on ore deposit can be calculated by multiplying the cost per depletion unit with the number of units utilized:
Depletion =Cost/Unit ×Units Utilized
$0.14×166,200 tones
=$23,268
Therefore the depreciation expenses on ore deposit amounts to $23,268
when ups invested in a foreign tech startup , ally commerce inc ., to give ups greater access to online sales,it was exemplifying
Answer:
Direct Investment is the correct answer to the given question .
Explanation:
The Direct investment is also known as direct foreign investment. In the Direct investment People invested the money into the company that operates in the some other country.
The main objective of direct investment to get the powerful presence in the business processes also the lengthy-term existence in the different nation.As the UPS participated in the Ally Commerce Inc i.e a global tech startup, to offer it better exposure to online purchasing it is example of direct investment .Ace Ventura, Inc., has expected earnings of $5 per share for next year. The firm's ROE is 15%, and its earnings retention ratio is 40%. If the firm's market capitalization rate is 10%, to the nearest dollar what is the present value of its growth opportunities
Answer: $25
Explanation:
Value with no growth = Expected earnings/Market capitalization rate
= $5/10%
= $5/0.1
= $50
Growth rate = Earnings retention ratio × ROE
Growth rate = 40% × 15%
= 40/100 × 15/100
= 0.4 × 0.15
= 0.06 = 6%
Value with growth = [$5 × (1-0.4)]/(0.10 - 0.06)
= ($5 × 0.6)/0.04
= $3/0.04
= $75
Present value of growth opportunities will now be:
= Value with growth - value with no growth
= $75 - $50
= $25
Jessica Ulta works as an employee for City Service Credit Union and is responsible for consulting on loans, talking clients through the loan process, and providing loans to members. What type of processes does Jessica primarily work with?
A. Business-facing processes
B. Industry-specific customer-facing processes
C. Customer-facing processes
D. Industry-specific business-facing processes
The cost of doing business is most likely to be the lowest in:_______.
a. closed totalitarian states.
b. primitive or undeveloped economies.
c. open democratic societies.
d. countries where local laws and regulations set strict standards with regard to product safety, safety in the workplace, and environmental pollution.
e. countries that lack well-established laws for regulating business practice.
Answer:
C. Open democratic societies.
Explanation:
Generally, the cost of doing business is most likely to be the lowest in an open democratic societies.
An open democratic society is one that is characterized by a degree of freedom for the populace and as such, it gives the people the privilege of fairly competing for all resources.
In an open democratic society, there's ease of doing business because the government would ensure there's an enabling environment by virtue of laws, regulations, policies, SME loans, taxation etc. The open society being opposed to autocracy, ensures that the government is typically responsive and tolerant to every individual living in the country. This simply means that, fundamental human rights and all the necessary infrastructures or amenities such as power, water, transportation systems are readily available and accessible to all.
Consequently, the cost of doing business becomes low and more individuals would be willing to startup their business; investors are confident of investing in the economy because they believe in the system put in place in an open democratic society.
Find the value of C, which makes the following two cash flow series equivalent. Assume that the market interest rate is 6% per year. Note: There are multiple approaches to solving this problem so be sure to consider the computational efficiencies of each approach before starting! $400 $400 $400 $400 $400 $125 $125 0 1 2 3 4 5 6 7 o 1 2 3 4 5 6 7 -$250 $250 $250
Answer:
Find attached complete question.
$ 750.10
Explanation:
In order to ascertain the value of C ,we need to equate the present value of the two streams of cash flows to each other as follows:
first stream:
$400/(1+6%)^1+$400/(1+6%)^2+$125/(1+6%)^3+$400/(1+6%)^4+$400/(1+6%)^5+$125/(1+6%)^6+$400/(1+6%)^7=$1,808.19
Second stream:
C/(1+6%)^1+C/(1+6%)^2-$250/(1+6%)^3-$250/(1+6%)^4-$250/(1+6%)^5+C/(1+6%)^6+C/(1+6%)^7
-$250/(1+6%)^3-$250/(1+6%)^4-$250/(1+6%)^5=-$594.74
C/(1+6%)^1+C/(1+6%)^2+C/(1+6%)^6+C/(1+6%)^7=C/0.9434+C/0.8900+C/ 0.7050+C/ 0.6651
simplification
C/0.9434+C/0.8900+C/ 0.7050+C/ 0.6651=C/(0.9434+0.8900+0.7050+0.6651)= 0.31216C
All in all:
$1,808.19 =-$594.74+ 0.31216C
$1,808.19+$594.74= 0.31216C
$2402.93 = 0.31216C
C=$2402.93* 0.31216 =$ 750.10
Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a return on investment of 20% and its manager is evaluated based on the division's ROI, will the division manager be inclined to request funds to make this investment
Answer and Explanation:
The computation is shown below:
But before reaching any decision, first we have to find out the ROI for new investment which is
ROI of new investment = net operating income ÷ investment
= $12,950 ÷ $70,000
= 18.50%
Now
If investment taken place, then overall ROI is
= Total net operating income ÷ Total average operating assets
= ($380,000 + $12,950) ÷ ($2,000,000 + $70,000)
= 18.98%
As we can see that the overall ROI i.e 18.98% is less than the currently ROI i.e 20% so he should not recommend ROI as it is shows fallen
The Baldwin company will continue to train their existing workforce at their current level to help reduce turnover and improve productivity next year. Employee training costs $20 per hour. How much would their training costs per employee be to the nearest dollar
Answer: $1,600
Explanation:
The training hours per employee can be calculated by multiplying the Employee Training hours by the cost of training per employee.
From the Attached document, the Baldwin company does 80 hours of training for employees.
The Training costs per Employee is;
= 80 * 20
= $1,600
If the Baldwin Company organizes 80 hours of training for each employer in a given year, and the training cost per hour for an employee is $20, it implies that the training costs per employee would be $1,600 ($20 x 80).
Data and Calculations:
Training costs per employee per hour = $20
Training hours per employee in a year 80 hours
Total training costs per employee in a year = $1,600 ($20 x 80)
Thus, the Baldwin Company spends $1,600 per employee in training them so that employee turnover would be reduced while productivity improves.
Learn more: https://brainly.com/question/23612814
Journalize the July transactions.
Martin Johnson opened Seaside Cleaning Service on July 1, 2019. During July, the company completed the following transactions:
July 1 Owner Martin Johnson invested $39,870 cash and $7,545 of cleaning equipment in the business.
1 Purchased a used truck for $10,500, paying $2,500 cash and the balance on account.
3 Purchased cleaning supplies for $1,794 on account.
5 Paid $1,800 on a one-year insurance policy, effective July 1.
12 Billed customers $4,813 for cleaning services.
15 Received $1,650 from customers for future cleaning services.
18 Paid $1,200 of amount owed on truck.
20 Paid $698 for employee salaries.
21 Collected $3,632 from customers billed on July 12.
25 Billed customers $6,275 for cleaning services.
31 Paid gasoline for the month on the truck, $297.
31 Owner Martin Johnson withdrew $1,000 for personal use.
Adjustments:
July 31 Earned but unbilled fees at July 31 were $2,476.
Depreciation on truck for the month was $175.
Earned $450 of payment received on July 15.
One-twelfth of the insurance expired.
An inventory count shows $521 of cleaning supplies on hand at July 31.
Accrued but unpaid employee salaries were $287.
Answer:
Transactions :
July 1
Cash $39,870 (debit)
Cleaning Equipment $2,500 (debit)
Capital $42,370 (credit)
July 1
Truck $10,500 (debit)
Cash $2,500 (credit)
Accounts Payable $8,000 (credit)
July 3
Cleaning Supplies $1,794 (debit)
Accounts Payable $1,794 (credit)
July 5
Prepaid Insurance $1,800 (debit)
Cash $1,800 (credit)
July 12
Trade Receivable $4,813 (debit)
Service Revenue $4,813 (credit)
July 15
Cash $1,650 (debit)
Deferred Revenue $1,650 (credit)
July 18
Accounts Payable $1,200 (debit)
Cash $1,200 (credit)
July 20
Cash $3,632 (debit)
Accounts Receivable $3,632 (credit)
July 25
Trade Receivables $6,275 (debit)
Service Revenue $6,275 (credit)
July 31
Utilities : Gasoline $297 (debit)
Cash $297 (credit)
July 31
Capital $1,000 (debit)
Cash $1,000 (credit)
Adjustments:
July 31
Cash $2,476 (debit)
Deferred Revenue $2,476 (credit)
July 31
Depreciation $175 (debit)
Accumulated Depreciation $175 (credit)
July 31
Deferred Revenue $450 (debit)
Revenue $450(credit)
July 31
Insurance Expense $150 (debit)
Insurance Prepaid $150 (credit)
July 31
Supplies Inventory $521 (debit)
Income statement $521 (credit)
July 31
Wages $287 (debit)
Wages Payable $287 (credit)
Explanation:
Journal entries have been made for both the transactions and adjustments that occurred during the period.
Note : Revenue earned but not billed is recorded as a Liability known as Deferred Revenue. The liability is de-recognized later as the customers or service is billed.
A notice is published stating that RMO 5% convertible preferred stock will be called at $60 per share. The preferred is convertible into 1/2 share of common and is selling in the market at $56 per share. RMO common stock is selling in the market at $110 per share. After the notice appears, the price of the preferred stock will most likely trade in the market at: _________.
Answer: d. A price near $60
Explanation:
The Preferred Stock was selling at $56 then a notice was circulated that RMO would be calling the stock at a price of $60.
This $60 is more than the current $56 and so this will need to reflect in the price of the stock. The adjustment will cause the Preferred stock to start trading near $60 as traders will seek to take advantage of the impending call by buying at a lower price and thus making a bit of profit when the stock is called at $60. The market will adjust to this because the Preferred stock will be perceived as undervalued. A price closer to the Call price will therefore become the new price to properly value the stock.
Dividends Per Share Windborn Company has 25,000 shares of cumulative preferred 3% stock, $50 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends:
Y1 $75,000
Y2 15,000
Y3 112,500
Determine the dividends per share for preferred and common stock for each year. The stock outstanding when a corporation has issued only one class of stock.common stock for each year.
Preferred Stock Common Stock
(dividend per share) (dividend per share)
Year 1 $ $
Year 2 $ $
Year 3 $ $
Answer:
Preferred Stock Common Stock
(dividend per share) (dividend per share)
Year 1 $1.50 $0.75
Year 2 $0.60 $0.00
Year 3 $2.40 $1.05
Explanation:
For Year 1:
Total dividend distributed = $75,000
Preferred shareholders' dividend = $50 * 25,000 * 3% = $37,500
Preferred shareholders' dividend per share = $37,500 / 25,000 = $1.50
Common stockholders' dividend = Total dividend distributed - Preferred shareholders' dividend = $75,000 - $37,500 = $37,500
Common stockholders' dividend per share = $37,500 / 50,000 = $0.75
For Year 2:
Total dividend distributed = $15,000
Dividend payable to preferred shareholders = $50 * 25,000 * 3% = $37,500
Dividend paid to preferred shareholders = $15,000
Preferred shareholders' dividend per share = $15,000 / 25,000 = $0.60
Preferred shareholders' dividend carried forward = Dividend payable to preferred shareholders - Total dividend distributed = $37,500 - $15,000 = $22,500
Common stockholders' dividend = $0
Common stockholders' dividend per share = $0
For Year 3:
Total dividend distributed = $112,500
Total dividend paid to preferred shareholders = $37,500 + Preferred shareholders' dividend carried down from Year 2 = $37,500 + $22,500 = $60,000
Preferred shareholders' dividend per share = $60,000 / 25,000 = $2.40
Common stockholders' dividend = Total dividend distributed - Total dividend paid to preferred shareholders = $112,500 - $60,000 = $52,500
Common stockholders' dividend per share = $52,500 / 50,000 = $1.05
Skilled versus unskilled labor markets Consider the labor markets for unskilled workers and skilled workers in the United States. Suppose you read the following newspaper headline: "The U.S. Department of Education Issues Report on Increased Productivity Effects of a College Education, but College Enrollment Remains Constant." The previous scenario primarily affects the labor market for ______ workers.
Answer: Skilled Workers.
Explanation:
Skilled workers refers to those with the skills and abilities required to work in their various tasks. Often these skills are gained from tertiary level institutions such as Universities, Colleges or Technical Schools.
When the report speaks of how having a college education leads to increased productivity, it is targeting skilled workers who as the definition states, have probably gone to College or Universities and the like.
This report will increase the labour market for skilled college education holders as companies might want to hire them more to gain from the reported increased productivity.
Hot and Cold has annual sales of $847,000, annual depreciation of $47,000, and net working capital of $43,000. The tax rate is 21 percent and the profit margin is 7.3 percent. The firm has no interest expense. What is the amount of the operating cash flow
Answer:
The amount of the operating cash flow is $108,831
Explanation:
In this question, we are tasked with calculating the amount of the operating cash flow.
Firstly, we calculate the net income.
Mathematically, net income = Sales × % profit margin
From the question, sales = $847,000
% profit margin = 7.3% = 7.3/100 = 0.073
Net income = $847,000 × 0.073 = $61,831
Finally, Operating cash flow = Net income + Depreciation
From the question, depreciation = $47,000
Plugging this alongside the net income,
Operating cash flow = $61,831 + $47,000 = $108,831
You are hired by the Council of Economic Advisors (CEA) as an economic consultant. The Chairperson of the CEA tells you that she believes the current unemployment rate is too high. The unemployment rate can be reduced if aggregate output increases. She wants to know what policy to pursue to increase aggregate output by $500 billion. The best estimate she has for the MPC is 0.5. Which of the following policies should you recommend? Why?
A) increase government purchases by $200 billion B) increase government purchases by $250 billion C) cut taxes by $200 billion D) cut taxes by $200 billion and to increase government purchases by $200 billion
Answer:
Council of Economic Advisors (CEA)
I would recommend this policy to increase aggregate output:
B) increase government purchases by $250 billion
Explanation:
To increase aggregate output (GDP) by $500 billion, in order to reduce the unemployment rate, government, given the best estimate for the MPC as 0.5, it would be to increase government purchases by $250 billion. The MPC is the marginal propensity to consume.
By increasing government purchases by $250 billion, the ripple effect would ginger industries to generate more output, thereby increasing the factors that affect aggregate output. These actions would then increase aggregate output by more than $500 billion. This choice is made because government spending is funded from taxes, making government unable to cut taxes.
Economists define aggregate output as "the sum of all the goods and services produced in an economy over a certain period of time." Aggregate output is an economy's total productivity or GDP (Gross Domestic Product). The factors that determine aggregate output include household wealth, consumer and business expectations, capacity utilization, monetary policy, fiscal policy, exchange rates, and foreign GDP.
The equation for calculating aggregate output, which expands the GDP by showing price level, is given as "Y = Y ad = C + I + G + NX tells us that aggregate output (or aggregate income) is equal to aggregate demand, which in turn is equal to consumer expenditure plus investment (planned, physical stuff) plus government spending plus net exports (exports – imports)."
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio.
Consider the following case:
Walker Telecommunications has a quick ratio of 2.00x, $35,550 in cash, $19,750 in accounts receivable, some inventory, total current assets of $79,000, and total current liabilities of $27,650. The company reported annual sales of $200,000 in the most recent annual report.
Over the past year, how often did Walker Telecommunications sell and replace its inventory?
a. 8.01 x
b. 5.24 x
c. 2.85 x
d. 4.75x
Answer:
Option A 8.01x is the closest answer
Explanation:
Quick ratio =current assets-inventory/current liabilities
let x represent the value of inventory
quick ratio is 2.00
current assets is $79,000
current liabilities is $27,650
2.00=$79,000-x/$27650
2.00*$27,650=$79,000-x
$55,300=$79,000-x
x=$79,000-$55,300
x= $23,700.00
Inventory turnover =sales/inventory
sales is $200,000
Inventory value is $23,700
inventory turnover ratio=$200,000/$23,700=8.44
The closest option is A,
Letts Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 6,970 units. The company has provided the following data concerning the formulas to be used in its budgeting: Fixed element per month Variable element per unit Revenue − $ 30.40 Direct labor $ 0 $ 6.10 Direct materials 0 8.70 Manufacturing overhead 46,700 1.80 Selling and administrative expenses 27,800 0.20 Total expenses $ 74,500 $ 16.80 The selling and administrative expenses in the planning budget for January would be closest to:
Answer:
Total Selling and administrative expenses $29200
Explanation:
Letts Corporation Manufacturers
Fixed element per month Variable element per unit
Revenue − $ 30.40
Direct labor $ 0 $ 6.10
Direct materials 0 8.70
Manufacturing overhead 46,700 1.80
Selling & admin. expenses 27,800 0.20
Total expenses $ 74,500 $ 16.80
We multiply the variable cost per unit with the planned number of units to get the variable budgeted cost. Fixed cost will however remain unchanged.
Cost = Fixed Cost + Variable Cost per unit * No Of units
Fixed Selling and administrative expenses $ 27,800
Variable Selling and administrative expenses 0.20*7000= $ 1400
Total Selling and administrative expenses $29200
