On November 4, 2016, Blue Company acquired an asset (27.5-year residential real property) for $200,000 for use in its business. In 2016 and 2017, respectively, Blue took $642 and $5,128 of cost recovery. These amounts were incorrect; Blue applied the wrong percentages (i.e., those for 39-year rather than 27.5-year assets). Blue should have taken $910 and $7,272 cost recovery in 2016 and 2017, respectively. On January 1, 2018, the asset was sold for $180,000. Enter the values for each item below. If required, round all computations to the nearest dollar.a. The adjusted basis of the asset at the end of 2017 is $.b. The cost recovery deduction for 2018 is $.c. The__________ on the sale of the asset in 2018 is $

Answers

Answer 1

Answer:

a. $191,818

b. $303

c. The loss on the ale of the asset in 2018 is $11,515.

Explanation:

a. The adjusted basis of the asset at the end of 2017 is $

Asset cost = $200,000

Greater of allowed and allowable cost recover in 2016 = $910

Greater of allowed and allowable cost recover in 2017 = $7,272

Basis at the end of 2017 = Asset cost - Greater of allowed and allowable cost recover in 2016 - Greater of allowed and allowable cost recover in 2016 = $200,000  - $910 - $7,272 = $191,818

b. The cost recovery deduction for 2018 is $.

Cost recovery for 2018 = $200,000 * (0.5/12) * 3.636% = $303

c. The__________ on the sale of the asset in 2018 is $

Basis on date of sale = Basis at the end of 2017 - Cost recovery for 2018 = $191,515

Profit (Loss) on sale of asset = Sales proceed - Basis on date of sale = $180,000 − $191,515 = ($11,515) .

Therefore, the loss on the ale of the asset in 2018 is $11,515.


Related Questions

Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $80,000; May, $110,000; and June, $120,000. Payments are made as follows: 70 % in the month of purchase and 30 % in the month after purchase. The March 31 balance of accounts payable is $22,000 Prepare a schedule of budgeted cash payments for April, May, and June.
April May June
Current month purchases 70%
Ending accounts payable 30 %
Total purchases
ZISK CO.
Schedule of Cash Payments For April, May, and June
Аpril May June
Cash payments for
Current month purchases
Prior month purchases
Budgeted cash payments for materials

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Budgeted purchase:

April= $80,000

May= $110,000

June= $120,000.

Payments are made as follows:

70% in the month of purchase and 30% in the month after purchase.

The March 31 balance of accounts payable is $22,000

April:

Purchase from April= 80,000*0.7= 56,000

From previous month= 22,000

Total cash= 78,000

May:

Purchase from May= 110,000*0.7= 77,000

From previous month= 80,000*0.3= 24,000

Total cash= 101,000

June:

Purchase from June= 120,000*0.7= 84,000

From previous month= 110,000*0.3= 33,000

Total cash= 117,000

Assume that you are a human resource manager of a 5-star international resort chain operating in
a South Pacific country. Your resort CEO recently assigns you to hire one hundred housekeepers
and waiters for your chain of hotels. Besides personality tests, discuss three other selection
measures you could use to select your targeted employees. Justify your choices with relevant
examples

Answers

Answer:

1. Language Skills

2. Specialization

3. Customer relationship skills

Explanation:

It is very important to note that South Pacific countries are home to many tourist, therefore the employees selected if able to speak various languages would be an added competitive advantage for the Hotel.

Also, employees with vast experience in their area of specialization is another factor that should be considered because it is serves as key to getting repeat service purchases in the hospitality industry.

Furthermore, the ability of employees to remain calm even to an irate customer shows a high level of good customer relationship. However, lack of this skill would result in potential loses for the hotel as a result of bad customer rating.

"A long time customer has purchased securities in a margin account and is experiencing a temporary cash shortfall. The customer tells the registered representative that he cannot pay on settlement; and the registered representative offers to lend the customer the necessary funds. This action is:"

Answers

Answer: Prohibited.

Explanation:

The Financial Industry Regulatory Authority (FINRA) frowns upon the action described above.

FINRA strongly prohibits the personal borrowing of money by the representative to a customer or vice versa. The only time this prohibition can be waved is if the parties are married or family.

Seeing as there was no mention of the parties being family, this action is prohibited.

Companies Heidee and Leaudy are virtually identical in that they are both profitable, and they have the same total assets (TA), Sales (S), return on assets (ROA), and profit margin (PM). However, Company Heidee has the higher debt ratio. Which of the following statements is CORRECT?

a. Company Heidee has a lower operating income (EBIT) than Company LD
b. Company Heidee has a lower total assets turnover than Company Leaudy.
c. Company Heidee has a lower equity multiplier than Company Leaudy.
d. Company Heidee has a higher fixed assets turnover than Company Leaudy.
e. Company Heidee has a higher ROE than Company Leaudy.

Answers

Answer:

e. Company Heidee has a higher ROE than Company Leaudy.

Explanation:

Return on equity measures how well the management of a business uses owner's equity to get returns. It is calculated by dividing net income by owner's equity.

That is

ROE= Net Income ÷ Owner's equity

Considering the accounting equation

Asset= Liability + Owner equity

Owner equity= Asset - Liability

From the equation when a company that take on more debt owner's equity will reduce.

The effect of reduction in owner's equity on Return on Equity is that it will increase the ratio, since owner's equity is the denominator.

In this scenario both companies have the same profit margin so if company Heidee has higher debt ratio it follows that it also has a higher ROE than Company Leaudy

Macro-economiscs college level .

Answers

Answer/Explanation:

A. Increase in import WOULD NOT lead to a decrease in national income because it would lead to increase in revenue derived from import duties.

B. A decrease in interest (leakage) WOULD lead to decrease in national income because it will increase borrowing and reduces investment.

C. A decrease in money supply (money available in an economy) WOULD NOT lead to decrease in national income because it reduces inflational rate.

D. An increase in exchange rate WOULD lead to decrease in national income because it would encourage capital flight.

E. A decrease in foreign income WOULD lead to decrease in national income because it reduces revenue earnings.

Ratio proficiency McDougal​ Printing, Inc., had sales totaling $ 41 comma 000 comma 000 in fiscal year 2019. Some ratios for the company are listed below. Use this information to determine the dollar values of various income statement and balance sheet accounts as requested. Assume a​ 365-day year. Calculate values for the​ following: a. Gross profits b. Cost of goods sold c. Operating profits d. Operating expenses e. Earnings available for common stockholders f. Total assets g. Total common stock equity h. Accounts receivable

Answers

Answer:

a. Gross profits

= total sales x gross profit margin = $41,000,000 x 76​% = $31,160,000

b. Cost of goods sold

= total sales - gross profit = $41,000,000 - $31,160,000 = $9,840,000

c. Operating profits

= total sales x operating profit margin = $41,000,000 x 31​% = $12,710,000

d. Operating expenses

= total sales - operating profit = $41,000,000 - $12,710,000 = $28,290,000

e. Earnings available for common stockholders

= net profits = total sales x net profit margin = $41,000,000 x 9​% = $3,690,000

f. Total assets

asset turnover = revenue / total assets

total assets = revenue / 2.1 = $41,000,000 / 2.1 = $19,523,810

g. Total common stock equity

ROE = net income / equity

equity = net income / ROE = $3,690,000 / 23% = $16,043,478

h. Accounts receivable

average collection period = 365 / accounts receivable turnover

54.5 = 365 / accounts receivable turnover

accounts receivable turnover = 365 / 54.5 = 6.697248

accounts receivable turnover = sales / accounts receivable

accounts receivable = sales / accounts receivable turnover = $41,000,000 / 6.697248 = $6,121,918

Explanation:

McDougal​ Printing, Inc.

Year Ended December​ 31, 2019

Sales  $41,000,000

Gross profit margin 76​%  =

Operating profit margin  31​%

Net profit margin  9​%

Return on total assets  18.9​%

Return on common equity 23​%

Total asset turnover  2.1

Average collection period  54.5 days

Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: January February March $ 3 Material purchases 14,870 11,690 12,760 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7,200. The budgeted cash payments for materials in January are
A. $13,580.
B. $13,815
C. $9,980
D. $7,200.
E. $19,960.

Answers

Answer:

Total= $14,635

Explanation:

Giving the following information:

Cost of materials:

January= 14,870

February= 11,690

March= 12,760

Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase.

The December Accounts Payable balance is $7,200.

To calculate the cash disbursement for January, we need to use the following structure:

Cash collection:

Accounts Payable= 7,200

Cash From January= (14,870*0.5)= 7,435

Total= $14,635

Synovec Corporation is expected to pay the following dividends over the next four years: $6.20, $17.20, $22.20, and $4.00. Afterward, the company pledges to maintain a constant 5.5 percent growth rate in dividends forever. If the required return on the stock is 9 percent, what is the current share price

Answers

Answer:

Current price =$125.56

Explanation:

According to the dividend valuation model, the value of a share is the present value(PV) of its future expected dividend discounted at the required rate of return.

We will sum the PV of its future dividends as follows:

PV in year 1 = 6.20 ×   1.09^(-1)= 5.69

PV in year 2 = 17.20 × 1.09^(-2)= 14.48

PV in year 3 = 22.20 ×  1,09^(-3)=17.14

PV in year 4 = 4 × 1.09^(-4)= 2.83

PV in year 5 and beyond =  (4 × 1.055)/(0.09-0.055) ×1.09^(-4)    = 85.42

Current price = 5.69  + 14.48 + 17.14  +  2.83  + 85.42 = 125.56

Current price =$125.56

         

Using a method of trend​ projection, the monthly sales for Yazici​ Batteries, Inc., were as​ follows: Month Sales Feb 21 Jan 20 Mar 15 Apr 15 May 13 Jun 16 Jul 17 Aug 17Sept 20Oct 22 Nov 23 Dec 23The forecast for the next month (Jan) using the naive method =_____sales. The forecast for the next period Jan using a 3 month moving average approach =_____sales. The forecast for the next period Jan using a 6 month weighted average with weights of 0.10, 0.10, 0.10, 0.20, 0.20 and 0.30, where the heaviest weights are applied to the most recent month =_____sales. Using exponential smoothing with α = 0.35 and a september forecast of 20.00, hte forecast for the next period Jan =_____sales. Using a method of trend projection, the forecast for the next month Jan =_____sales. The method that can be used for making a forecast for the month of March is_____.

Answers

Answer:

the answer is C or b im not 100% sure

"Cincinnati Supply, Co. is a local supplier to the Kraft Heinz Company, which is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world. Cincinnati Supply, Co. purchased new furniture at a cost of $33,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $3,000 salvage value. The company uses the straight-line method of depreciation. What is the amount of depreciation expense reported on December 31

Answers

Answer:

Annual depreciation= $5,000

Explanation:

Giving the following information:

Purchasing price= $33,000

Salvage value= $3,000

Useful life= 6 years

To calculate the depreciation expense under the straight-line method, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (33,000 - 3,000)/6

Annual depreciation= $5,000

If he goes to college, he will spend $22,000 on tuition, $11,000 on room and board, and $1,700 on books. If he does not go to college, he will earn $12,000 working in a store and spend $6,000 on room and board. Taio's cost of going to college is

Answers

Answer:

$40,700

Explanation:

To determine Taio's cost of going to college you need to find the economic cost that involves all the costs that you need to cover to receive a benefit and the opportunity costs that refer to what you would have received if you had chosen a different alternative. According to this, Taio's cost is equal to all the acounting costs related to going to college plus the opportunity costs that are the benefits lost from the other option which was not going to college.

Accounting costs= $22,000+$11,000+$1,700= $34,700

Opportunity costs= $12,000-$6,000= $6,000

Taio's cost of going to college is equal to the acount costs plus the opportunity costs:

$34,700+$6,000= $40,700

In 2010, the MoreForLess Company had revenues of $2,000,000 while costs were $1,500,000. In 2011, MoreForLess will be introducing a new product line that will generate $200,000 in sales revenues and $160,000 in costs. Assuming no changes are expected for the other products, the differential operating profit for 2011 is

Answers

Answer:

Differential profit Profit = $40,000

Explanation:

The differential operating profit is the difference between the operating profit before the introduction of the product and after the introduction of the new product

Profit = Revenue - costs

Profit before the introduction of the new product

= 2,000,000 - 1,500,000 = 500,000

Profit after the introduction of the new product

New revenue =  (2,000,000 + 200,000) = 2,200,000

Cumulative cost = 1,500,000 + 160,000 =  1,660,000

Profit = 2,200,000 - 1,660,000 = 540000

Differential profit Profit =  540,000 - 500,000= $40,000

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6 million. The machinery can be sold to the Romulans today for $5.1 million. Klingon’s current balance sheet shows net fixed assets of $3.4 million, current liabilities of $895,000, and net working capital of $235,000. If the current assets and current liabilities were liquidated today, the company would receive a total of $1.15 million cash. a. What is the book value of Klingon’s total assets today? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) b. What is the sum of the market value of NWC and the market value of fixed assets? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Answers

Answer:

a. What is the book value of Klingon’s total assets today?

total assets = net fixed assets + current assets

net fixed assets = $3,400,000current assets = net working capital + current liabilities = $235,000 + $895,000 = $1,130,000

total assets = $3,400,000 + $1,130,000 = $4,530,000

b. What is the sum of the market value of NWC and the market value of fixed assets?

market value of NWC = $1,150,000market value of fixed assets = $5,100,000

FMV of NWC + fixed assets = $1,150,000 + $5,100,000 = $6,250,000

The Blaine Development Corporation (BDC) is reconsidering the Lummi Resort Hotel project. It would be located on the picturesque banks of Birch Bay and have its own championship-level golf course. The cost to purchase the land would be $1 million, payable immediately. Construction costs would be approximately $2 million, due at the end of year 1. However, the construction costs are uncertain. These costs could be up to 20 percent higher or lower than the estimate of $2 million with an equal chance (uniform distribution). BDC’s best estimate for the annual operating profit to be generated in years 2, 3, 4, and 5 is $700,000. Due to the great uncertainty, the estimate of the standard deviation of the annual operating profit in each year also is $700,000. Assume that the yearly profits are statistically independent and follow the normal distribution. After year 5, BDC plans to sell the hotel. The selling price is likely to be somewhere between $4 and $8 million (assume a uniform distribution), and revenue will be received in year 5. Interest has been r = 5% (and you can ignore inflation), so you can simplify your net present value (NPV) calculation to be
NPV = summation of [ (pi(t)-c(t)) / ( (1-r)^t )] where t varies from 0 to 5
where pi(t) is operating profit and ct is cost of land and construction, both in period t. Simulate the NPV 1000 times. What is the mean and standard deviation of the NPV of the project?

Answers

Answer:

I can't help you sorry

Explanation:

I don't know what any of this means

Betterton Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs—equipment depreciation and supervisory expense-are allocated to three activity cost pools—Machining, Order Filling, and Other—based on resource consumption. Data to perform these allocations appear below:
Overhead costs:
Equipment depreciation $ 49,000
Supervisory expense $ 3,000
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
Machining Order Filling Other
Equipment depreciation 0.50 0.30 0.20
Supervisory expense 0.10 0.40 0.50
In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity: Activity:
MHs (Machining) Orders (Order Filling)
Product A8 3,000 500
Product K2 17,000 1,500
Total 20,000 2,000
What is the overhead cost assigned to Product A8 under activity-based costing?

Answers

Answer:

$7,695

Explanation:

The computation of overhead cost assigned to Product A8 under activity-based costing is shown below:-

Overhead  Amount  Machining Amount  Order Amount Other Amount

                                                                      Filling

Equipment

Depreciation $49,000   0.5         $24,500    0.3   $14,700  0.2    $9,800

Supervisory

Expense         $3,000     0.1           $300         0.4      $1,200  0.5   $1,500

Total               $52,000                  $24,800               $15,900       $11,300

Cost per Activity pool unit

Particulars                           Machining             Order Filling      Allocated Cost a                   $24,800               $15,900      

Activity b                                  20,000 hours      2,000 order Fillings     Cost per Activity pool unit    1.24                         7.95

c = a ÷ b                         per machine Hour   per order fillings

Here, in reference to Product A8

Machine Hours                     3,000

Cost per Activity pool unit    1.24 per Machine Hour

Total Cost                              3,720

To reach total cost we simply multiply the machine hours with cost per activity pool unit

Order Filling                          500      

Cost per Activity pool unit    7.95 per order fillings      

Total Cost                              3,975

To reach total cost we simply multiply the order filling with cost per activity pool unit    

Total Overhead cost assigned to Product A8 = Total cost of machine hours + Total cost of order filling

= $3,720 + $3,975

= $7,695

Walkers World Company gathered the following information for 2019:
Total sales revenue (65% on credit) $432,000
Cost of goods sold 231,000
Sales returns and allowances (on credit) 44,000
Accounts receivable at end of 2019 ($30,000
increase during 2019) 100,000
Allowance for doubtful accounts:
Beginning of 2019 5,000
End of 2019 7,000
Merchandise inventory at end of 2019 ($10,000
decrease during 2019) 28,000
Assume 365 days in the year.
Calculate each of the following ratios.
A. Receivable turnover ratio.
B. Average age of receivables.
C. Inventory turnover ratio.
D. Average number of days' supply in inventory

Answers

Answer:

A. Receivable turnover ratio. = 4.57 times

B. Average age of receivables. 94.07 days

C. Inventory turnover ratio. 7 times

D. Average number of days' supply in inventory = 633 days

Explanation:

Net Sales $ 388,000

Sales revenue (65% on credit) $432,000

Less Sales returns and allowances (on credit) 44,000

Average Accounts Receivable = Accounts Rec (beg) Accounts Rec (end)/2

= 70,000+ 100,000/2= $85,000

A. Receivable turnover ratio.

Receivable turnover ratio= Net Sales / Average Accounts Receivable

= 388,000/ 85,000= 4.5647= 4.565= 4.57 times

A high turnover ratio is favorable because the accounts receivable are quickly collected.

B. Average age of receivables.

Average age of receivables= Accounts receivable *365/ Sales

= 100,000* 365/388,000= 365,000,00/388,000= 94.07 days

Accounts receivable will be collected in 94 days.

C. Inventory turnover ratio.

Inventory turnover ratio= Cost Of Goods Sold/ Average Inventory

= 231,000/38,000+ 28,000/2

= 231,000/33,000= 7 times

A company with a high turnover requires a smaller investment in inventory than one producing the same sales with a lower turn over.

D. Average number of days' supply in inventory

Average number of days' supply in inventory= Cost of Goods Sold/ 365

= 231,000 /365= 632.89

More Inventory will be needed in 633 days

Walkers World Company gathered the following information for 2019:

Total sales revenue (65% on credit) $432,000

Cost of goods sold 231,000

Sales returns and allowances (on credit) 44,000

Accounts receivable at end of 2019 ($30,000

increase during 2019) 100,000

Allowance for doubtful accounts:

Beginning of 2019 5,000

End of 2019 7,000

Merchandise inventory at end of 2019 ($10,000

decrease during 2019) 28,000

Assume 365 days in the year.

Calculate each of the following ratios.

A. Receivable turnover ratio.

B. Average age of receivables.

C. Inventory turnover ratio.

D. Average number of days' supply in inventory

Pelzer Printing Inc. has bonds outstanding with 10 years left to maturity. The bonds have a 9% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $950.70. The capital gains yield last year was -4.93%. What is the yield to maturity

Answers

Answer:

The answer is 9.85%

Explanation:

The number of periods N = 9years(10 years minus 1 year ago)

Yield to Maturity (I/Y) = ?

Present value of the bond (PV) = $950.70

Future value of the bond(FV) = $1,000

Annual payment (PMT) = $90 (9% x $1,000)

Using a financial calculator to solve the problem ( BA II plus Texas instruments):

Yield to Maturity (I/Y) = 9.85%

The market and Stock J have the following probability distributions: Probability rM rJ 0.3 15% 20% 0.4 9 5 0.3 18 12 a. Calculate the expected rates of return for the market and Stock J. b. Calculate the standard deviations for the market and Stock J.

Answers

Answer: The answer is provided below

Explanation:

The expected rates of return for the market = 13.5

the expected rates of return for the market and Stock J = 11.6

The standard deviations for the market = 3.85

The standard deviations for Stock J = 6.22

The explanation has been attached.

Required information
An internal control system consists of the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations, and uphold company policies. It can prevent avoidable losses and help managers both plan operations and monitor company and human performance. Principles of good internal control include establishing responsibilities, maintaining adequate records, insuring assets and bonding employees, separating recordkeeping from custody of assets, dividing responsibilities for related transactions, applying technological controls, and performing regular independent reviews. Sarbanes-Oxley Act requires each of the following:
A. An effective internal control.
B. Light penalties for violators.
C. Auditors must evaluate internal controls.
D. Auditor's work overseen by Public Accounting Board.

Answers

Answer:

Options A and D.

Explanation:

Just like it is given in the question above, the concept of internal control system has to do with the regulations and policies that are being set by each companies/firms or agencies or bodies or business organization in order to increase their productivity and efficiency.

The Sarbanes-Oxley Act was enacted on the 30th day of the month of July in the year 2002 by the 107th United States of America congress and its main work or purpose is to make sure sure that there is reliability and transparency in financial and accounting institutions and also to protect investors.

When a breech is perceived, group of people will be appointed to conduct "An effective internal control" and also for the "Auditor's work overseen by Public Accounting Board."

Answer:

A. An effective internal control

C. Auditors must evaluate internal controls

Explanation:

SOX requires managers and auditors whose stock is publicly traded to have an effective internal control system, auditors must evaluate internal controls, violators may receive harsh penalties (not light penalties), and auditors’ work is overseen by Public Company Accounting Oversight Board (PCAOB) (not by the Public Accounting Board).

Analyze the events​ chronologically, one transaction at a​ time, beginning with the transaction on the 5th. For each transaction that follows​ the transaction on the​ 5th, calculate the balance in each account after analyzing its effect on the accounting equation. After calculating the ending balance of each account on the 30​th,
calculate total assets and total liabilities and equity.​(Complete only the necessary answer boxes for your transaction lines.​ [Do not enter any zeros for your transaction​ lines.] Carry down all balances to the​ "Bal." line, including zero balance​accounts, entering a​ "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations​used: A/P​ = Accounts​ Payable; A/R​ = Accounts​ Receivable; Com.​= Common; Contr.​ = Contributed; Div.​ = Dividends; Exp.​ = Expense; Furn.​ = Furniture; Liab​ = Liabilities; Rev.​ = Revenue; Sup.​ = Supplies; Util.​ = Utilities.)

Answers

QUESTION COMPLETION:

TRANSACTIONS:

April 5 Shaff deposited $40,000 in a new business bank account titled Apr. Abraham Shaff, CPA. The business issued common stock to Shaff.

April 6 Paid $200 cash for letterhead stationery for new office

April 7 Purchased office furniture for the office on account, $8,000.

April 10 Consulted with tax client and received $2,900 for services rendered. 11 Paid utilities, $280.

April 12 Finished tax hearings on behalf of a client and submitted a bill for accounting services, $8,000.

April 18 Paid office rent, $1,700.

April 25 Received amount due from client that was billed on April 12

April 27 Paid full amount of accounts payable created on April 7

April 30 Cash dividends of $2,500 were paid to stockholders.

Answer:

See attached.

Explanation:

The question requires business events to be analyzed chronologically with each event's impact on the accounting equation.

The accounting equation states that Assets equal Liabilities plus Equity (Assets = Liabilities + Equity).  The implication of this equation is that given each business transaction, Assets will always be equal to Liabilities and Equity.  Two accounts or more are usually affected by each transaction.  It may be two assets accounts or one asset and liabilities, etc.  Expenses and Income impact the Retained Earnings, which is part of the Equity.

Assets are the resources owned by the business, while liabilities are financial obligations to third parties that contribute to the owned resources.  Equity is the funds contributed by the stockholders, including the earnings retained from business.  Equity, therefore, represents the ownership interest in the assets after liabilities have been deducted.

Operating data for Swifty Corporation are presented below. 2022 2021Sales revenue $830,700 $634,900 Cost of goods sold 529,000 415,000 Selling expenses 124,700 73,600 Administrative expenses 78,800 53,900 Income tax expense 33,500 23,400 Net income 64,700 69,000 Prepare a schedule showing a vertical analysis for 2022 and 2021. (Round percentages to 1 decimal place, e.g. 12.1%.)

Answers

Answer and Explanation:

The preparation of the vertical analysis is presented below:

Particulars       Amount           %      Amount    %

Sales                 $830,700 100      $634,900 100

Less:

Cost of goods sold $529,000 63.7    $415,000 65.4

Gross Profit          $301,700 36.3     $219,900 34.5

Less:

Selling Expenses $124,700 15.0       $73,600 11.6

administrative expenses $78,800 9.5   $53,900 8.5

Total Operating

expenses               $203,500 24.5 $127,500  20.9

Income before

income taxes         $98,200          11.8  $92,400  14.5

Less:

Income tax expenses $33,500 4.0    $23,400  3.7

Net Income               $64,700 7.8     $69,000 10.8

Working note

The percentage is like

= Items value ÷ sales × 100

Like for cost of goods sold

= $529,000 ÷ $830,700 × 100

= 63.68%

It is same applicable for other items also

The year-end 2009 balance sheet for Tom's Copy, Inc. lists common stock ($1.00 par value) of $ 5,870 , capital surplus of $ 17,290 and retained earnings of $ 47,076 . On the 2010 year-end balance sheet, retained earnings are listed as $ 50,350 . The firm's net income in 2010 was $ 9,811 . No stock was issued or repurchased in 2010. What were dividends per share paid by the firm in 2010

Answers

Answer:

$1.11 per share

Explanation:

For computing the dividend per share first we have to determine the dividend by applying the following formula

Amount of dividend = Beginning balance of retained earnings + Net Income - Ending balance of retained earnings

= $47,076 + $9,811 - $50,350

= $6,537

And, the number of shares  is

= $5,870  ÷  $1 par

= 5,870 shares

So, the Dividend per share is

= Dividend ÷ number of shares

= $6,537  ÷  5,870 shares

= $1.11 per share

On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $264,000. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $24,000. On March 1, 2021, the truck was sold for $115,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service.Required: 1. Prepare the journal entry to update depreciation in 2021 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $141,000, prepare the journal entry to record the sale.

Answers

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)

Banfield Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below: VP YI WX Selling price per unit $ 248.04 $ 230.66 $ 505.44 Variable cost per unit $ 190.71 $ 172.14 $ 388.80 Centiliters of compound W 3.90 3.80 8.10

Answers

Answer:

B) YI, VP, WX

Explanation:

VP YI WX

Selling price per unit

$248.04 $230.66 $505.44

Variable cost per unit

190.71 $172.14 $388.80

Contribution margin per unit

(Selling price - variable cost)

$57.33 $58.52 $116.64

The amount of the constrained resource that would be required to produce one unit

3.90 3.80 8.10

Therefore:

$57.33÷3.90=$14,70

$58.52÷3.80 =$15.40

$116.64÷8.10=$14.40

Therefore the Contribution margin per unit of the constrained resource would be

$14.70 $15.40 $14.40

Therefore the Ranking the products in order of their current profitability from most profitable to least profitable would be:

YI =$15.90

VP=$14.70

WX=$14.40

Which is YI VP WX

United Resources Company obtained a charter from the state in January of this year. The charter authorized 206,000 shares of common stock with a par value of $3. During the year, the company earned $493,000 Also during the year, the following selected transactions occurred in the order given: Sold 88,000 shares of the common stock in an initial public offering for $14 per share. Repurchased 26,000 shares of the previously issued shares for $17 per share. Resold 8,000 shares of treasury stock for $20 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

United Resources Company

Stockholders section of the balance sheet at the end of the year:

Common Stock:

Authorized 206,000 shares at $3 par value

Issued 88,000 shares                                 $264,000

Additional Paid-in Capital

($968,000 -364,000 + 136,000)                   740,000

Treasury Stock ($78,000 - 24,000)               (54,000)

Total Equity                                                 $950,000

Explanation:

a) The authorized common stock is stated in the balance sheet as a memorandum record.  It does not form part of the calculation of equity since all the shares have not been issued.

b) Issued common stock is valued at 88,000 * $3 = $264,000

c) The difference in the par value and the issue price is recorded in the Additional Paid-in Capital Account.  It is also where the increases and decreases in Treasury stock above or below par values are recorded.

d) Treasury Stock is a common stock contra account which records the repurchase and resale of common stock.  Two methods are used.  One recognizes the whole cost of treasury stock in the Treasury Stock account.  It is called the costing method.  The other method, called the par-value method, recognizes the above and below par value in the Additional Paid-in Capital.

During 2022, Bramble Corp. reported cash provided by operations of $778000, cash used in investing of $672000, and cash used in financing of $186000. In addition, cash spent on fixed assets during the period was $270000. Average current liabilities were $637000 and average total liabilities were $1682000. No dividends were paid. Based on this information, what was Bramble free cash flow

Answers

Answer:

Bramble free cash flow was $508,000

Explanation:

Cash provided by operations = $778,000

Cash used in investing = $672,000

Cash used in financing = $186,000

Cash spent on fixed assets during the period = $270,000

Average current liabilities = $637,000

Average total liabilities = $1,682,000

Free cash flow = Cash flow from operating activities - Capital expenditures

= $778,000 - $270,000

= $508,000

Write a linear cost function equation for each of the following conditions. Use y for estimated costs and X for activity of the cost driver.

a. Direct manufacturing labor is $10 per hour.

b. Direct materials cost $15.60 per cubic yard.

c. Utilities have a minimum charge of $5,000, plus a charge of $0.30 per kilowatt-hour.

d. Machine operating costs include $300,000 of machine depreciation per year, plus $100 of utility costs for each day the machinery is in operation.

Answers

Answer:

a)

y = $10x

b)

y = $15.6x

c)

y = $5000 + $0.3x

d)

y = $300000 + $100x

Explanation:

y for estimated costs and X for activity of the cost driver. Linear cost function is given as:

y = a + bx.

Where y is the cost being predicted, x is the cost driver, a is the fixed cost (intercept) and b is the variable cost per unit (slope)

a) Since Direct manufacturing labor is $10 per hour,  variable cost (b) =  Direct manufacturing labor = $10

Therefore:

y = $10x

b) variable cost (b) =  Direct materials cost = $15.60 per cubic yard.

Therefore:

y = $15.6x

c) Fixed cost (a) = utilities = $5000 and  variable cost (b) =  charges = $0.3 per kilowatt-hour. Therefore:

y = $5000 + $0.3x

d) Fixed cost (a) = Machine operating costs = $300000 and  variable cost (b) =  utility costs = $100 per day. Therefore:

y = $300000 + $100x

Common stocks typically have which of the following that bonds do NOT have?
I. Voting rights
II. Fixed cash flows
III. Set maturity date
IV. Tax deductibility of cash flows to investors
a) i only
b) i,ii and iv only
c) ii,iii and iv only
d) iv only
e) i, ii,iii and iv

Answers

Answer:

The correct option is A, i only

Explanation:

The voting right attached to common stock means that common stockholders being the original owners of the company have the right to attend the company annual general meetings and vote on issues concerning the efficient running of the company as well as election of board of directors.

Fixed cash flows of annual or semiannual coupon interest, set maturity date including the tax deductibility of cash flows to investors are all features of bonds.

Assume India can produce either 15 bottles of milk or 50 cartons of eggs using all of its available resources, and Indonesia can produce either 25 bottles of milk or 35 cartons of eggs using all of its available resources. After each country fully specializes in producing the good in which it has a comparative advantage, how many cartons of eggs will India produce

Answers

Answer:

50 cartons of eggs

Explanation:

The comparative advantage is a principle in which a country specializes in the production a good in which it has a lower opportunity cost than others.

                 Bottles of milk     cartons of eggs

India                  15                              50

Indonesia          25                             35

In this situation, the opportunity cost for India of producing 1 bottle of milk is producing 3.33 cartons of eggs. The opportunity cost for Indonesia of producing 1 bottle of milk is producing 1.4 cartons of eggs. This means that Indonesia has a lower opportunity cost and a comparative advantage in producing bottles of milk.

In the other part, the opportunity cost for India of producing 1 carton of eggs is producing 0.3 bottles of milk and the opportunity cost for Indonesia of producing 1 carton of eggs is producing 0.71 bottles of milk. This means that India has a lower opportunity cost and a comparative advantage in producing cartons of eggs.

According to this, India would specialize in producing eggs as it has a comparative advantage and the country will produce 50 cartons of eggs.

A new equipment has been proposed by engineers to increase the productivity of a welding operation of a local fabrication plant. The investment cost is $25,000, and the equipment will have a market value of $5,000 at the end of a study period of five years. Increased productivity attributable to the equipment will amount to $10,000 per year after operating costs have been subtracted from the revenue generated by the additional production. If MARR is 12%, is investing in this equipment feasible

Answers

Answer:

NPV =$13,884.89

Investing the the equipment id feasible because it has a positive NPV, thus implies that it will increase the wealth of the company by $13,884.8963

Explanation:

The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.

NPV of an investment:

NPV = PV of Cash inflows - PV of cash outflow

Initial cost = 25,000

Present value of the cash inflow

PV of annuity= 1 -(1+r)^(-n)/r × Annual cash flow

A-10,000, r- 12%, n- 5

PV of annual cash inflow = 10,0000× (1-  (1.12^(-5)/0.12=36,047.762

Present Value of Scrap value

PV = S×× (1+r)^(-n)

S- scrap value , n- 5, r 12%

PV of scrap Value = 5,000 × (1.12)^(-5)= 2,837.13

NPV= 36047.76202+ 2837.134279  - 25,000= 13,884.89

NPV =$13,884.89

Investing the the equipment id feasible because it has a positive NPV, thus implies that it will increase the wealth of the company by $13,884.8963

Other Questions
HELP ME PLEASE ITS NOT THAT HARD 1. What is 7/4 as a mixed number?A. 17/4B. 13/4C. 3/4D. 11/4 The fruit fly Drosophila melanogaster is an important model system for studying inheritance in animals and genetic control of animal development, including humans. Evaluate Drosophila as a model system for human biology. What are their strengths and weaknesses as a model system? g Suppose you observe the number of passengers arriving at a metro station on a shuttle bus that holds up to 8 passengers. Describe the sample space. 8.________ intelligence is the set of skills that underlie the accurate assessment, evaluation, expression, and regulation of feelings A column is a horizontal set of data in a spreadsheet.TrueFalse What is the approximate value of sin B?B>17.467A16 A laptop producing company also produces laptop batteries, and claims that the batteries it produces power a laptop for about 4:00 hours. But, you doubted the claim and collected data from 500 laptop users of the same brand and battery, and you found out the battery powers the laptop for about 3:00 hours and 30 minutes. Considering an alpha of 0.05, prove the claim of the company is true or false or show whether you accept the companys claim or reject it? Please also write H0 and Ha statements for testing your hypothesis Full PSA:Close-up: Studies show that physical activity can enhance important skills like concentration and problem solving, which can improve academic performance. Talk about a competitive edge. Examine the public service advertisement. Be sure to look at the full PSA and the close-up view. Write three to five sentences explaining how two or more elements of the advertisement convey the viewpoint effectively. Determine the value of x in the figure. answers: A) x = 90 B) x = 40 C) x = 45 D) x = 135 if somebody comments or answers in the next 2 minutes ill vote you brainliest Suppose that a random sample of adult males has a sample mean heart mass of x=310.1 grams, with a sample standard deviation of s=6.6 grams. Since adult male heart masses are generally symmetric and bell-shaped, we can apply the Empirical Rule. Between what two masses do approximately 68% of the data occur? Round your answer to the nearest tenth. what fault generally occurs at a divergent boundary Why do sex-linked traits follow different patterns of inheratance than other traits What types of substances are considered drugs? a car runs 20mph how much does it travel in 1 hour Which macromolecule is made up of nucleic acids ?A. SucroseB. RNAC. Fatty AcidsD. Protein Which is the largest organ of the human body? whats ur fav anime show and name the character u like from that show mine is toyko ghoul and the character is ken kaneki The location of the First Battle of Bull Run was significant because, A. it occurred in the south an advantage, B. it was close to the coast so troops get assistance from the navy, C, it was about halfway between the north and south capitals, D. it occurs in the north, which gave the south an early advatage