Answer:
Change in net working capital during the year is $7,005
Explanation:
Given the above data,
Cash flow from assets = Cash flow to creditors + Cash flow to shareholders
= $16,920 + $7,496
= $24,416
Opening cash flow from financial assets = Operating cash flow - *Net capital spending - Change in net working capital.
$24,416 = $51,069 - ($57,100 - $49,680 + $12,228 - Change in working capital
$24,416 = $51,069 - $19,648 - Change in net working capital
$24,416 = $31,421 - Change in net working capital
Change in net working capital = $31,421 - $24,416
Change in net working capital = $7,005
Please note that net capital spending = net fixed assets at the end - net fixed assets at the beginning + depreciation expenses.
Precision Manufacturing had the following operating results for 2014: sales = $38,900; cost of goods sold = $24,600; depreciation expense = $1,700; interest expense = $1,400; dividends paid = $1,000. At the beginning of the year, net fixed assets were $14,300, current assets were $8,700, and current liabilities were $6,600. At the end of the year, net fixed assets were $13,900, current assets were $9,200, and current liabilities were $7,400. The tax rate for 2014 was 34 percent. What is the cash flow from assets for 2014?
Answer:
$4,284
Explanation:
The Computation of the cash flow from assets for the year 2014 is shown below
= Operating cash flow - net capital spending - changes in working capital
where,
Operating cash flow is
= EBIT + depreciation - taxes
The EBIT could come from
= Sales - cost of goods sold - depreciation expense - interest expense - tax expense
= $38,900 - $24,600 - $1,700 - $1,400 - $34% of $11,200
= $7,392
Now operating cash flow is
= $7,392 + $1,700 - $3,808
= $5,284
net capital spending = ending fixed assets - beginning fixed assets + depreciation
= $13,900 - $14,300 + $1,700
= $1,300
Changes in working capital = (ending balance of current assets - ending balance of current liabilities) - (beginning balance of current assets - beginning balance of current liabilities)
= ($9,200 - $7,400) - ($8,700 - $6,600)
= $1,800 - $2,100
= -$300
Now the cash flow from assets is
= $5,284 - $1,300 -(-$300)
= $4,284
One year ago, the Jenkins Center opened an investment account and deposited $4,600. Today, it is depositing another $6,000 and will make a final deposit of $8,500 one year from now. How much will the firm have saved four years from now if it earns an average annual return of 7.5 percent
Answer:$44,600
Explanation: Because that's what it is
Rhode, Inc., began business in Year 1. Inventory reported in the Year 3 year-end balance sheet, determined using the average cost method, was $170,000. In Year 4, the company decided to change its inventory method to FIFO. If the company had used the FIFO method in Year 3, ending inventory would have been $220,000. Prepare the appropriate journal entry to record this change.
Answer:
Dr Inventory 50,000
Cr Retained Earnings 50,000
Explanation:
Preparation of Journal entry
Based on the information given we were told that in Year 3 the inventory was determined using the average cost method at the amount of $170,000 while in Year 4, the company change the inventory method to FIFO. Therefore if the company used the FIFO method in Year 3 the company ending inventory would have been the amount of $220,000 which means that the Journal entry will be recorded as :
Dr Inventory 50,000
Cr Retained Earnings 50,000
(220,000-170,000)
(To record change in inventory from average cost method to FIFO method )
Suppose there are 10 individuals with values as follows: {10, 8, 8, 8, 8, 8, 8, 4, 0, 0}. Construct a demand schedule (table), and calculate the marginal revenue of the second unit sold.
Answer:
so basically what you would do is
Explanation:
i have no clue
The Constitution gives the federal government the power to regulate _____?
Answer:
A clause of the U.S. Constitution that grants Congress the power "to regulate commerce with foreign nations, and among the several states, and with Indian tribes." This clause also gives the federal government the authority to regulate interstate commerce.
Explanation:
Which one of the following is a real asset? Explain
A. A Patent
B. A personal IOU
C. A checking account balance
D. A share of stock
While discussing their marketing campaign for a new product, the members of the cross-functional team responsible for Carver Inc. realized that a couple of changes relating to their prior plan would be beneficial. The offer of a franchising that had earlier been brushed off by the company head was discussed thoroughly, and it was decided that it would be implemented on a trial basis initially and on full scale if found to work well. From the information provided, it can be concluded that this cross-functional team has a high degree of ________
Question Completion with Options:
A) uncertainty
B) reflexivity
C) diversity
D) conformity
E) demography
Answer:
Cross-functional Team (Carver, Inc.)
From the information provided, it can be concluded that this cross-functional team has a high degree of ________
B) reflexivity
Explanation:
The team at Carver Inc. certainly do not make decisions without thinking deeply about them in order to make required changes if their re-examinations of issues reveal some benefits that they did not realize initially. This implies that they usually take action with the knowledge that they acquire while researching a problem and they are always ready to reverse their formerly held hypothesis in the light of new findings. This the reason it could reconsider the offer of a franchising that was earlier brushed off by the company head. It did not just stop at the reconsideration, it went further to decide for trial implementation of the idea so that it could decide to embark on full-scale implementation after the testing period.
Dunkin’ Donuts made a strategic decision to make its business about the coffee, not just the donuts. What are the risks when a company that is so closely identified with one product (it’s in their name!) decides to change its focus to a different product? What marketing strategies can help reduce the risks and increase the probability of success?
Answer:
.
Explanation:
State whether the following sentences are true or false regarding the nature of fiduciary-type funds and the accounting measurements within them. If the sentence is false, state why. a. Governments may access the resources of fiduciary funds to help support their own programs. b. When a government sponsors an Investment Trust Fund, the portion that belongs to other governments is reported as assets of the Fund, but the portion belonging to the sponsoring government is not. c. The statement of net position for a typical Agency Fund shows assets and liabilities, but no fund balance. d. When reporting on the resources of Pension Trust Funds, equity securities held by the Funds are reported at original cost.
Answer:
a. Governments may access the resources of fiduciary funds to help support their own programs.
True
b. When a government sponsors an Investment Trust Fund, the portion that belongs to other governments is reported as assets of the Fund, but the portion belonging to the sponsoring government is not.
True
c. The statement of net position for a typical Agency Fund shows assets and liabilities, but no fund balance.
True
d. When reporting on the resources of Pension Trust Funds, equity securities held by the Funds are reported at original cost.
True
Explanation:
Sanyu Sony started a new business and completed these transactions during December.
Dec. 1 Sanyu Sony transferred $67,300 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock
2 The company rented office space and paid $1,400 cash for the December rent.
3 The company purchased $14,100 of electrical equipment by paying $5,900 cash and agreeing to pay the $8,200 balance in 30 days.
5 The company purchased office supplies by paying $800 cash.
6 The company completed electrical work and immediately collected $1,100 cash for these services.
8 The company purchased $2,540 of office equipment on credit.
15 The company completed electrical work on credit in the amount of $7,000.
18 The company purchased $330 of office supplies on credit.
20 The company paid $2,540 cash for the office equipment purchased on December 8.
24 The company billed a client $800 for electrical work completed; the balance is due in 30 days.
28 The company received $7,000 cash for the work completed on December 15.
29 The company paid the assistant’s salary of $1,500 cash for this month.
30 The company paid $580 cash for this month’s utility bill.
31 The company paid $950 cash in dividends to the owner (sole shareholder).
Prepare an income statement for the current month. sony statement
Answer:
Income statement for the month ended, December 31
Service Revenue ( $800 + $7,000 + $1,100) $8,900
Less Expenses :
Rent Expense $1,400
Salaries Expenses $1,500
Utility Expenses $580 ($3,480)
Net Income / (Loss) $5,420
Explanation:
First Record the transactions as follows :
Dec. 1
Cash $67,300 (debit)
Common Stock $67,300 (credit)
Dec. 2
Rent Expense $1,400 (debit)
Cash $1,400 (credit)
Dec. 3
Electric Equipment $14,100 (debit)
Cash $5,900 (credit)
Account Payable $8,200 (credit)
Dec. 5
Office Supplies $800 (debit)
Cash $800 (credit)
Dec. 6
Cash $1,100 (debit)
Service Revenue $1,100 (credit)
Dec. 8
Office Equipment $2,540 (debit)
Account Payable $2,540 (credit)
Dec. 15
Account Receivable $7,000 (debit)
Service Revenue $7,000 (credit)
Dec. 18
Office Supplies $330 (debit)
Account Payable $330 (credit)
Dec. 20
Accounts Payable $2,540 (debit)
Cash $2,540 (credit)
Dec. 24
Account Receivable $800 (debit)
Service Revenue $800 (credit)
Dec. 28
Cash $7,000 (debit)
Account Receivable $7,000 (credit)
Dec. 29
Salaries Expenses $1,500 (debit)
Cash $1,500 (credit)
Dec. 30
Utility Expenses $580 (debit)
Cash $580 (credit)
Dec. 31
Dividends $950 (debit)
Cash $950 (credit)
1. New equipment costing $85,000 was purchased for cash during the year. 2. Old equipment having an original cost of $57,500 was sold for $1,500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $40,350 was declared and paid during the year. Prepare a statement of cash flows using the indirect method.
Answer:
Cash flow from Operating Activities
Loss on Sale of Equipment ($57,500 - $1,500) $56,000
Net Cash flow from Operating Activities $56,000
Cash flow from Investing Activities
Purchase of New Equipment - $85,000
Proceeds from Sale of Equipment $1,500
Net Cash flow from Investing Activities - $83,500
Cash flow from Financing Activities
Dividend Paid - $40,350
Net Cash flow from Financing Activities - $40,350
Explanation:
The Indirect method, reconciles the Net Income or Operating Profit to Cash flow from Operating Activities by adjusting the following items : (1) Non-Cash items previously added or deducted from Operating Profit and (2) Changes to Working Capital items that need to be adjusted on the Operating Profit.
Receiving a payment from a customer on account would:
A) increase stockholders' equity.
B) have no effect on total assets.
C) increase stockholders' equity.
Answer:
Option B, have no effect on total assets, is the right answer.
Explanation:
Option “B” is correct because if the payment is received from the customer then it will increase the cash account or it will increase the stockholders’ equity but will have no effect on the total assets. The total assets account gets affected when there are sale and purchase of assets or there is any loss of gain of assets. But in the given case there is no relation with the assets account so it will have no effect.
Just before the semester starts, you notice that the campus bookstore has a sale on new laptop computers, which is something you have been planning to purchase in the coming months. The campus bookstore is offering 15 percent off on a laptop that normally costs $600. However, you are also considering buying a new TV for your apartment, and you know that the electronics store, Media-ocre Buy, is offering 20 percent off on a TV, which normally costs $400. Assuming you are currently unable to make both purchases due to budget constraints, which product offers the best deal
Answer:
Laptop
Explanation:
Based on the information provided we can calculate the savings of each item by turning the percentages into decimals and multiplying that decimal by the actual cost of the item.
Laptop = 600 * 0.15 = $90
TV = 400 * 0.20 = $80
Therefore after making these calculations, we can see that by buying the Laptop you are saving a total of $90 which would put you at $10 more than if you were to purchase the TV. Therefore, based solely on actual dollar amount saved then the Laptop is the better deal in this scenario.
Golf Guide sells imprinted clothing and accessories for golfers through a catalog. To find new customers, Golf Guide sends a small catalog to names selected from mailing lists. The company mails out catalogs at a cost of $3,100 per thousand pieces mailed, and can expect a response rate of 6%. All responders become customers. Calculate the cost per customer acquired implied by these numbers. Round to the nearest penny.
Answer:
Cost per customer acquired = $51.67
Explanation:
Customer acquired per thousand pieces mailed = 1000*6% = 60
Total cost per thousand pieces mailed A $3,100
Divide by Customers acquired B 60
Cost per customer acquired A/B $51.67
A customer long 100 shares of XYZ stock who wishes to reduce risk and generate income should:_________.
a. sell a car.
b. buy a call.
c. buy a put.
d. sell a put.
Answer:
C
Explanation:
A customer long 100 shares of XYZ buys 100 shares of XYZ
A put is an option which gives an investor the right but not the obligation to sell an underlying asset at a predetermined price within a particular period.
To reduce the risk of buying an asset, a customer can buy a put. This gives the customer the right to sell the stock at a set price.
For example, the investor can state in the put contract that we would sell the stock at $4 / unit. So, even if prices of the shares fall to $1. the investor would still sell his share for $4 / unit
One major concern with restricted ownership of major media outlets is that Question 8 options: the incentives for quality media programs will be reduced as competition declines. fewer entertainment options will be available, as competition for audiences declines. fewer people will be able to consume media products, threatening the industry's viability. de facto censorship may occur because it becomes easier to suppress messages that media owners don't support.
Answer:
de facto censorship may occur because it becomes easier to suppress messages that media owners don't support.
Explanation:
Google Calendar and Microsoft Outlook Calendar are examples of DSS.
A. True
B. False
Answer:
B. False
Explanation:
Note that Google Calendar and Microsoft Outlook Calendar are simply digital event organizer tools which allow a user schedule events or task via a registered Google or Outlook linked account.
However, DSS (Decision Support System) put simply, is an information system that assists users in making decisions.
Royal Bank common shares pay dividends annually. They just paid a $1.50 dividend. Stock holders require a return of 12%. Royal is expected to continue paying dividends that will grow at 3.5% per annum in perpetuity. What is the fair price of a share of Royal Bank stock?
Answer: $18.26
Explanation:
The Dividend discount model can be used to calculate he fair price of the Royal bank stock.
The formula is;
= Next dividend/ ( Required rate of return - growth rate)
= ( 1.5 * ( 1 + 3.5%))/ ( 12% - 3.5%)
= $18.26
You have been hired as a consultant to the central bank for a country that has for many years suffered from repeated currency crises and depends heavily on the U.S. financial and product markets. Which of the following policies would have the greatest effectiveness for reducing currency volatility of the client country with the United States? an exchange rate pegged to the U.S. dollar an internationally floating exchange rate an exchange rate with a fixed price per ounce of gold dollarization
Answer: dollarization
Explanation:
Of the following policies given in the question, the one that would have the greatest effectiveness for reducing currency volatility of the client country with the United States is dollarization.
Dollarization occurs when a country recognizes the dollar as a legal tender or medium of exchange in place of the domestic currency of a particular country.
It should be noted that dollarization occurs due to instability of the local currency which has resulted into its loss of usefulness to function well as a medium of exchange.
Given the following tax structure, what minimum tax would need to be assessed on Shameika to make the tax progressive with respect to effective tax rates?Taxpayer Salary Muni-Bond Interest Total TaxMihwah $22,500 $4,850 $1,665 Shameika $87,500 $40,000 ???
Answer:
$6,475
Explanation:
Calculation for the minimum tax
The following details were given
Taxpayer Salary Muni-Bond Interest
Total Tax
Mihwah $22,500 $4,850 $1,665
Shameika $87,500 $40,000 ???
First step is to find Mihwah’s average tax
using this formula
Mihwah’s average tax rate =Total tax / Taxable income
Let plug in the formula
Mihwah’s average tax rate=$1,665/$22,500
Mihwah’s average tax rate=0.074×100
Mihwah’s average tax rate=7.4%
Second step is to calculate for the minimum tax
7.4% average tax rate on Shameika’s $87,500 taxable income will give us the minimum tax
Hence,
Minimum tax=7.4%×$87,500
Minimum tax=$6,475
Therefore the minimum tax would need to be assessed on Shameika to make the tax progressive with respect to effective tax rates will be $6,475
The minimum tax should be $6,475
The calculation is as follows:Mihwah’s average tax rate =Total tax ÷ Taxable income
=$1,665 ÷$22,500
=0.074×100
=7.4%
Now the minimum tax should be
=7.4%×$87,500
=$6,475
Learn more: https://brainly.com/question/15622851?referrer=searchResults
Which federal agency protects bank deposits up to $250,000 per institution?
Office of the Comptroller of the Currency
Federal Deposit Insurance Corporation
Securities and Exchange Commission
Bureau of Consumer Protection
Answer:
Federal Deposit Insurance Corporation
Explanation:
Answer:
Federal Deposit Insurance Corporation
Whispering Winds Corp. has the following transactions during August of the current year. Aug. 1 Issues shares of common stock to investors in exchange for $10,800. Aug. 4 Pays insurance in advance for 3 months, $1,200. Aug. 16 Receives $730 from clients for services rendered. Aug. 27 Pays the secretary $580 salary. Indicate the basic analysis and the debit–credit analysis.
Answer:
Aug. 1 Issues shares of common stock to investors in exchange for $10,800.
Accounting equation:
Asset + 10,800
Equity +10,800
Journal entry:
cash 18,000 debit
common stock 18,000 credit
Aug. 4 Pays insurance in advance for 3 months, $1,200.
Accounting equation:
Asset + 1,200
Assets - 1,200
Net 0
Journal entry:
prepaid rent 1,200 debit
cash 1,200 credit
Aug. 16 Receives $730 from clients for services rendered.
Accounting equation:
Asset + 730
Equity +730
Journal entry:
cash 730 debit
revenues 730 credit
Aug. 27 Pays the secretary $580 salary
Accounting equation:
Asset - 580
Equity - 580
Journal entry:
salaries expense 580 debit
cash 580 credit
Explanation:
We need to disclose how the impact in the accounting equation and the journal entry should be done:
Aug 1st the common stock is an equity account that is increasing
we receive cash that is an asset
August 4th we are using our cash to pay in advance the rent.
this gives a right to use the rental space for 3-months thus, it is not an expense is a new asset. There is no change in the accounting equation only the composition of assets changed.
August 16th we recognize earnings through revenues account this increases the equity of the company as well as assets.
August 27th in this case we pay the salaries which are an incurred cost, therefore, expense. This decreases equity.
We also use cash making assets to decrease as well.
Hugh has the choice between investing in a City of Heflin bond at 4.95 percent or investing in a Surething Inc. bond at 7.60 percent. Assuming that both bonds have the same nontax characteristics and that Hugh has a 40 percent marginal tax rate, what interest rate does Surething Inc. need to offer to make Hugh indifferent between investing in the two bonds? (Round your answer to 2 decimal places.)
Answer:
8.25%
Explanation:
Hugh will pay tax on its interest income and hence teh after tax rate of income shall be = Interest rate * (1- tax) . City of Heflin bond is offering a rate of 4.95% after tax rate of return, hence Surething should offer a interest rate that given Hugh after tax rate of 4.95%.
Tax rate is given 40% = 0.40
So , Interest rate * (1 - tax) = 4.95%
Interest rate * (1 - 0.40) = 0.0495
Interest rate * 0.60 = 0.0495
Interest rate = 0.0495 / 0.60
Interest rate = 0.0825
Interest rate = 8.25%
Hence Surething should offer 8.25% interest rate.
What are the steps to strategic management?
Answer:
The process of strategic management includes goal setting, analysis, strategy formation, strategy implementation, and strategy monitoring. Let's take a look at how each of these steps ties into the overall strategic management process. The first part of strategic management is to plan and set your goals.Nov
The main goal of monetary policy is to shift:____.a. long-run aggregate supply.b. aggregate demand. c. short-run aggregate supply.
Answer:
b. aggregate demand.
Explanation:
Monetary policy are policies taken by the central bank of a country to shift aggregate demand.
There are two types of monetary policy :
Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy
Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy
Khan Corporation has budgeted the unit sales for April to be 5,000 units. The sales price is $25 per unit, and production costs are $10 per unit. Monthly utility expenses are estimated to be $2,000 plus $2 per unit, whereas selling expenses are estimated to be $12,000. The company pays a monthly rent of $2,000. What would be the utility expenses on the company's flexible budget if actual unit sales for April were 6,000 units
Answer:
$14,000
Explanation:
Given that;
Monthly utility expenses = $2,000
Monthly utility expenses per unit = $2
Actual units = 6,000
Therefore,
The amount of utility expenses on the flexible budget for 6,000 units
= $2,000 + [ $2 × 6,000 units ]
= $2,000 + $12,000
= $14,000
Live Trap Corporation received the following data for its rodent cage production unit. OUTPUT INPUT 50,025 cages Production time 652 labor hours Sales price: $3.60 per unit Wages $ 7.60 per hour Raw materials (total cost) $ 31,550 Component parts (total cost) $ 15,900 Find the total productivity in Units Sold and Dollars of Sales per Dollar Input. (Round your answers to 2 decimal places
Answer:
1. 0.95 per dollar input
2. $3.44 per unit input.
Explanation:
1. Total output (sales revenue )
= Output cages × sales price per unit
= 50,025 cages × $3.60 per unit
= $180,090
Computation of total input
Wages(652 × 7.6). $4,955.2
Component parts $15,900
Raw materials $31,550
Total input. $52,405.2
Therefore, total productivity in units sold
= Output in units / input in dollars
= 50,025 cages / $52,405.2
= 0.95 per dollar input
2. Total productivity in dollars
= Output in dollars / input
= $180,090 / $52,405.2
= $3.44 per unit input
The Gamebox system normally sells for $250 and comes pre-packaged with one game. The average price for games is $30. The company also sells its online game subscription package, which allows members to download and play one new game per month, for $240. During the holiday season, the company provides a package deal which includes the gaming system with two games and a free one-year game subscription for $400. The company should allocate $192.31of the $400 package purchase price to the gaming system.
A. True
B. False
Answer:
The answer is "Option A"
Explanation:
The given statement is true because it uses the transaction price method. In this process, the amount of evaluation for the company entity continues to earn for the client to convert products or services.
Its quantity may also be fixed, changeable, or coupled, and the price of the payment shall be allocated to its fair value recognized throughout the contract, that's why in this question two gaming system includes with a 1-year free subscription in $400, and the organizations should make the gaming system $192.31 of a $400 bundle sales price.
is a retail chain specializing in salon-quality hair-care products. During the year, had sales of . The company began the year with of merchandise inventory and ended the year with of inventory. During the year, purchased of merchandise inventory. The company's selling, general, and administrative expenses totaled for the year. Prepare income statement for the year.
Answer:
.................................................Big Fuzzy Spider.................................................
.....................................Income Statement for the year.....................................
Sales............................................................................................ $39,150,000
Cost of Goods sold:
Opening Inventory ............................................$3,500,000
Add: Purchases...................................................$23,350,000
Less: Closing Inventory.................................... $4,445,000
Less: Cost of Goods Sold .........................................................($22,405,000)
Gross Profit....................................................................................$16,745,000
Less: Operating Expenses ........................................................($7,225,000)
Net Profit ................................................................................$9,520,000
A capital investment firm placed $1.5 million 2 years ago to acquire part-ownership in an innovative chip making company. How long will it take from the date of their initial investment for their share of the chip company to be worth $3 million, if the company is realizing a 20% per year return?A capital investment firm placed $1.5 million 2 years ago to acquire part-ownership in an innovative chip making company. How long will it take from the date of their initial investment for their share of the chip company to be worth $3 million, if the company is realizing a 20% per year return?
Answer:
t = 3.801784017 years rounded off to 3.80 years
Explanation:
We need to calculate the time it takes for the initial investment of $1.5 million to grow and have a future value of $3 million. The formula to calculate the future value of a sum of money is,
FV = I * (1+r)^t
Where,
FV is the future valueI is the initial investment amountr is the rate of returnt is the time in years3 = 1.5 * (1+0.2)^t
3 / 1.5 = 1.2^t
2 = 1.2^t
log (2) / log (1.2) = t
t = 3.801784017 years rounded off to 3.80 years
