The net income reported on the income statement for the current year was $261000. Depreciation was $39900. Account receivable and inventories decreased by $11800 and $34900, respectively. Prepaid expenses and accounts payable increased, respectively, by $1100 and $8300. How much cash was provided by operating activities?

Answers

Answer 1

Answer:

$ 354,800.00  

Explanation:

The net cash amount provided by operating activities in the year is  determined by adding depreciation to net income as well as the decrease in both accounts receivable and inventories.

There is also the need to to deduct increase in prepaid expenses and add the increase in accounts payable as done below:

net cash provided by operating activities=$261,000+$39,900+$11,800+$34,900-$1,100+$8,300=$354,800.00  


Related Questions

1. Investment in the business= $17,010
2. Borrow cash= $7620
3. Purchase equipment= the list price was $8700 but the final price was $8300
4. Revenues earned = $298,600, the cash has been collected from the customers for all revenue earned
5. Expenses incurred= total $210,900 during the same year, all expenses paid in cash
6. Dividens= end of each quarter, the company distributed cash to stockholders, the sum of those quarterly distributions was $15,000
Consider the following transactions for Thomas Company and their effect ont he accounting equation. Determine the new balance for each component of the accounting equation from the transactioon. If an amount box does not require an entry, leave it blank.
Transaction Assets =Liabilities Stockholders' Equity
Beginning $0 $0 $0
1. Investment in the business $17,160 17160
2. Borrow cash $7940 7940 7940
3. Purchase equipment 8600 7940 660
4. Revenues earned 29860 0 29860
5. Expenses incurred 210800 103660
6. Dividends 14200 88460

Answers

Answer & Explanation:

                               Assets         =         Capital        +         Liabilities

1) Investment         Cash (+17...)            (+17160)

2) Borrowings       Cash (+7...)                                            Loan (+7...)

3) Purchase          Cash (-price paid)     + Gain

                            Equip (+final price)      (final - price paid)

4) Revenue          Cash (+298...)                Income (+298...)  

5) Expense           Cash (-210...)                 Expense (-210...)

3)* Price paid = 8700 or 8600 , Final price = 8300 or 7940 , Gain (Discount received) = 8700 - 8300 ie 400 (or) 8600 - 7940 = 660

Use the starting balance sheet, income statement, and the list of changes to answer the question. Gulf Shipping Company Balance Sheet As of December 31, 2019 (amounts in thousands) Cash 38,000 Liabilities 22,000 Other Assets 27,000 Equity 43,000 Total Assets 65,000 Total Liabilities & Equity 65,000 Gulf Shipping Company Income Statement January 1 to March 31, 2020 (amounts in thousands) Revenue 5,100 Expenses 2,800 Net Income 2,300 Between January 1 and March 31, 2020: 1. Cash decreases by $100,000 2. Other Assets do not change 3. Paid-In Capital does not change 4. Dividends paid of $400,000 What is the value for Liabilities on March 31, 2020?

Answers

Answer:

the value for Liabilities on March 31, 2020 is $22,000

Explanation:

Liabilities are current obligations of the entity that arose as a result of past events, the settlement of which will results in the outflow of cash from the entity.

To calculate the value for Liabilities on March 31, 2020, make adjustments to the liability balance that exists at the start of the year with movement that qualify as liabilities as defined above.

Opening balance as at 1 January 2020 = $22,000

Movements in liabilities                           =  $0

Balance as at March 31, 2020                 =  $22,000

Conclusion :

The liabilities  value  on March 31, 2020 remains at $22,000

Suppose you are an analyst in the oil refinery industry and are responsible for estimating the equilibrium price and quantity of home heating oil. To do so, you must consider factors that can affect the supply of and demand for heating oil.
Determinants of the demand for heating oil include household income, the price of an oil furnace (a complement to heating oil) and the price of natural gas (a substitute for heating oil). Determinants of the supply of heating oil include the cost of crude oil and the cost of refining crude oil into home heating oil.
1. Suppose that all of the determinants of the supply and demand for heating oil are equal to their initital values. The equilibrium quantity in this market is ___ barrels of heating oil per day,
A. 60,000
B. 50,000
C. 70,000
D. 80,000
E. 40,000
2. and the equilibrium price is ____ per barrel.
A. $40
B. $70
C. $60
D. $50
E. $80

Answers

Answer:

1. 80,000

2. $40 per barrel

Explanation:

1. As we can see from the table provided The equilibrium quantity in this market is 80,000 barrels of heating oil per day,  as quantity demanded match quantity supplied

2. As we can see from the table provided The equilibrium price is $40 per barrel as in this cost there is an intersection of quantity demanded and quantity supplied. In other words the equilibrium price and quantity could be find out when the quantity demanded equal to quantity supplied

Assume that Corn Co. sold 7,500 units of Product A and 2,500 units of Product B during the past year. The unit contribution margins for Products A and B are $33 and $56, respectively. Corn has fixed costs of $328,000. The break-even point in units is

Answers

Answer:

Break-even point (units)= 8,464 units

Explanation:

Giving the following information:

Assume that Corn Co. sold 7,500 units of Product A and 2,500 units of Product B during the past year. The unit contribution margins for Products A and B are $33 and $56, respectively. Corn has fixed costs of $328,000.

First, we need to calculate the proportion of sales:

Product A= 7,500/10,000= 0.75

Product B= 2,500/10,000= 0.25

Now, using the following formula, we can determine the break-even point in units:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Break-even point (units)= 328,000/ (0.75*33 + 0.25*56)

Break-even point (units)=  328,000/38.75

Break-even point (units)= 8,464 units

A company has a net income of $190,000, a profit margin of 9.40 percent, and an accounts receivable balance of $106,351. Assuming 72 percent of sales are on credit, what is the company's days' sales in receivables?

Answers

Answer:

The company's days' sales in receivables is 22 days

Explanation:

In order to calculate the company's days' sales in receivables we would have to calculate first the total sales with the following formula:

Total Sales = Net Income / Profit Margin

= $190,000/9.4%=$2,021,276

Hence, Credit Sales = $2,021,276*0.85= $1,718,085

Accounts receivable turnover ratio = Credit sales / Accounts Receivable

= $1,718,085 /$106,351

= 16.15485

Therefore, Days sales in receivables = 365/16.15485= 22.59 days

The company's days' sales in receivables is 22 days

The following items are taken from the financial statements of the Freight Service for the year ending December 31, 2016:

Accounts payable $ 19,000

Accounts receivable 13,000

Accumulated depreciation – equipment 26,000

Advertising expense 21,200

Cash 15,000

Owner’s capital (1/1/16) 104,000

Owner’s drawings 11,000

Depreciation expense 12,000

Insurance expense 3,800

Note payable, due 6/30/17 72,000

Prepaid insurance (12-month policy) 7,200

Rent expense 16,000

Salaries and wages expense 32,000

Service revenue 135,000

Supplies 5,000

Supplies expense 6,000

Equipment 210,000

What is the company’s net income for the year ending December 31, 2016?

Answers

Answer:

Freight Service

Income Statement for the year ending December 31, 2016:

Service Service                                 $135,000

Costs:

Advertising expense        21,200

Depreciation expense     12,000

Insurance expense           3,800

Rent expense                  16,000

Salaries & Wages exp    32,000

Supplies expense            6,000

Total Expenses                                     $91,000

Net Income                                         $44,000

Explanation:

In calculating the net income for the year, only revenue and expenses (income statement) items are taken into account.  They are also called temporary or period accounts which are closed to the income statement for the period, because they are not permanent accounts.  Permanent accounts are taken to the balance sheet and carried over to the next accounting period.

Todd can afford to pay $375 per month for the next 7 years in order to purchase a new car. The interest rate is 6.5 percent compounded monthly. What is the most he can afford to pay for a new car today

Answers

Answer:

The most he can afford to pay = $25,260.07

Explanation:

The most he can afford to pay is the present value of the  $375 per month discounted at the interest rate of return of 6.5% p.a

PV = A× (1- (1+r)^(-n))/r

PV = ?, A- 375,  r- 6.5/12= 0.541%   n= 12×7 = 84

PV = 375× (1- (1.00541)^(-84) )/0.00541= 25260.071

The most he can afford to pay = $25,260.07

Note: the monthly interest rate needed to be computed by dividing 6.5% by 12 and the number of months in 7 years is 7 × 12 = 84

Sarah has a toothache. She believes it may be due to her not having regular dental checkups in the past. She now wants to find a dentist, but does not have one that she has used in the past. Because dentistry has __________ properties, Sarah plans to ask her friends for a recommendation for a dentist they like to be sure that she finds a good one.

Answers

Answer:

Credence properties

Explanation:

Dentistry has a Credence property because it is a Service provided by medical specialized professionals. medical diagnoses and legal services have credence properties, or characteristics. A consumer may find a service with Credence property impossible to evaluate even after purchase and consumption. To reduce this uncertainty, service consumer like Sarah turns to personal sources of information like her friends during the purchase decision process

On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $4,950,000. The company expects to extract 990,000 tons of coal during a four-year period. During 2021, 249,000 tons were extracted and sold immediately.Required:
1. Calculate depletion for 2021.
2. Is depletion considered part of the product cost and included in the cost of inventory?

Answers

Answer:

1. Depletion for 2021 will be derived if the "tons which were extracted and sold immediately" is divided by "the Depletion per ton"

Depletion for 2021 = Extracted and sold tons in 2021 / depletion per ton

Depletion for 2021 = 249,000 tons * $5 per tons

Depletion for 2021 = $1,245,000

Where as the depletion per ton is be derived when the purchase price plus additional costs necessary is divided extract of tons of coals during the 4 year period.

Depletion per ton =  $4,950,000 / 990000  

Depletion per ton =   $5 per ton

2. Depletion is not considered as part of product cost. It is shown as expense on income statement and reduced from the value of natural resource. So it is equivalent to depreciation of assets.

Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $89 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 60% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows:

Direct materials $16
Direct labor 20
Factory overhead (25% of direct labor) 5
Total cost per unit $41

If Fremont Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 5% of the direct labor costs.

Required:
a. Prepare a differential analysis dated September 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case.
b. Assuming there were no better alternative uses for the spare capacity, it would ______________ to manufacture the carrying cases. Fixed factory overhead is________to this decision.

Answers

Answer:

A.Total cost 41 93 (52)

B. It would be much better to manufacture the carrying cases .

While Fixed factory overhead is less important to this decision.

Explanation:

Fremont Computer Company Differential Analysis

Make Alternative 1: Buy Alternative 2:

Differential effect on net income

Alternative 1 : Alternative 2: Differential effect

Purchase Price - 89 (89)

Direct material 16 - 16

Direct labor 20 - 20

Variable 1 - 1

manufacture overhead (20×5%)

Fixed (5-1) 4 4 -

manufacture overhead

Total cost 41 93 (52)

The Company should choose Alternative 1

which is Make carrying case

B. It would be much better to manufacture the carrying cases.

While Fixed factory overhead is less important to this decision.

Therefore in make or buy decision the selling price of the product will be less important because the selling price was not provided which means it does not have effect on the decision of buy or make.

Mark is creating Nu2U, a Web site through which he will enter into contracts over the Internet. In his standard online contract, he includes a provision which states "Any disputes under this contract will be resolved under the laws of the State of Texas." This is an example of a

Answers

Answer: Choice of Law Clause

Explanation:

The Choice of Law Clause allows parties in a contract to pick a territory's laws as the laws that the contract between them will be applicable to.

This way uncertainty can be avoided when any of the parties seeks legal redress for any perceived breach of contract.

It is worthy of note that parties do not even need to be from the Territory whose laws have been chosen and this is why some parties look for Territories who have laws that will be favourable to them. This is why most big Corporations pick Delaware law because their laws are perceived to be pro big business.

You have just been offered your dream job after graduating from Jacksonville University. In response to your negotiations concerning your compensation package, the company has offered you a couple of different stock options in addition to the agreed upon salary.
Under the first option, you would receive stocks with a value of $2,000,000 at the end of each year. This option also includes an additional $4,000,000 bonus that you would receive for staying at the company for 3 years.
Under the second option, you would receive stocks with a value of $1,000,000 at the end of each year. This option also includes an additional $8,000,000 bonus that you would receive for staying at the company for 3 years.
Assume that these stocks grow at a rate of 11% compounded monthly. Moreover, assume that you will leave the company at the end of your fourth year to start your own firm. Which option will you choose. (The more money you have to start your own firm, the better.)
Your formal solutions should include ...
⦁ The overall goal and/or purpose.
⦁ The given information
⦁ A time-line for each option
⦁ A future value for each individual stock payment provided you by the company
⦁ The total future value of each option at the time you plan to leave the company
⦁ Your conclusion

Answers

Answer:

Goal: maximize return at the end of the fourth year.

Future value of each option:

First choise:       $ 11,730,289.64

Second choise: $ 12,559,457.84‬

Conclusion:

It is better to pick the second option as yields a better return

Explanation:

We solve for the future value of the cashflow of each option:

First choise:

End of the first year:

[tex]Principal \: (1+ r)^{time} = Amount[/tex]

Principal 2,000,000.00

time 36.00 (form end of the first to end of the fourth)

rate 0.00917 (11% / 12 months as it compounds monthly)

[tex]2000000 \: (1+ 0.00916666666666667)^{36} = Amount[/tex]

Amount $2,777,757.26

End of the second year:

Principal 2,000,000.00

time 24.00

rate 0.00917

[tex]2000000 \: (1+ 0.00916666666666667)^{24} = Amount[/tex]

Amount $2,489,657.04

End of the third year:

Principal 4,000,000.00

time 12.00

rate 0.00917

[tex]4000000 \: (1+ 0.00916666666666667)^{12} = Amount[/tex]

Amount $4,462,875.34

End of the fourth year: $2,000,000

Total:  

$2,777,757.26

$2,489,657.04

$4,462,875.34

$2,000,000        

$ 11,730,289.64

Second choise:

First year

Principal 1,000,000.00

time 36.00

rate 0.00917

[tex]1000000 \: (1+ 0.00916666666666667)^{36} = Amount[/tex]

Amount 1,388,878.63

Second year:

Principal 1,000,000.00

time 24.00

rate 0.00917

[tex]1000000 \: (1+ 0.00916666666666667)^{24} = Amount[/tex]

Amount 1,244,828.52

Third Year

Principal 8,000,000.00

time 12.00

rate 0.00917

[tex]8000000 \: (1+ 0.00916666666666667)^{12} = Amount[/tex]

Amount 8,925,750.69

Fourth year: 1,000,000

Total

1,388,878.63

1,244,828.52

8,925,750.69

1,000,000.00      

12,559,457.84‬

Describe other options teachers and their union have in resolving the impasse before opting for a strike? For each point illustrate your discussion with examples from Pacific island countries (PICs)

Answers

Answer: The other options include; dialogue; notification; peaceful protest and ultimatum.

Explanation: 1) Dialogue: Dialogue refers to a discussion between the two opposing parties. The teachers or their union may opt for a round table discussion to negotiate on the issue and its possible resolution.

2) Peaceful protest: A protest is an expression of strong opposition or disapproval of something. This is an option that can be exercised in a peaceful way by demonstration the grievance.

3) Notification or Ultimatum: Notification involves an information on when an option either expires or is to be exercised while an ultimatum is a demand that can be followed up with penalty or threat. This is also an option used by Pacific Island Countries in resolving the impasse before resulting to strike.

The Crime Prevention Service for Business at Rutgers University School of Criminal Justice defines shrinkage as the difference between the inventory a business should have and what the:

Answers

Answer: ...business actually does have.

Explanation:

According to a study done in 2010, Retail Stores around $38 billion in Shrinkage making it quite a huge problem. Shrinkage according to the  Crime Prevention Service for Business at Rutgers University School of Criminal Justice is the difference between the inventory a business should have and what it actually does have meaning that Shrinkage refers to the unexplained losses in inventory during the year.

Shrinkage can happen due to a couple of reasons such as employee theft, book keeping errors and shoplifting.  

When a central bank increases bank reserves by $1, the money supply rises by more than $1. The amount of extra money created when the central bank increases bank reserves by $1 is called the money multiplier.

a. The money multiplier is generally greater than 1 because:

1. in a fractional-reserve banking system, each dollar bill is spent more than once (velocity is larger than 1), thereby increasing the money supply by more than $1.
2. in a fractional-reserve banking system, each dollar of reserves can support more than one dollar of deposits, thereby increasing the money supply by more than $1.
3. in a 100 percent reserve banking system, each dollar of reserves supports exactly one hundred dollars of deposits, thereby increasing the money supply by $100.
4. when a central bank increases bank reserves by $1, deposits are automatically increased by $1 as well, thereby increasing the money supply by $2.

The money multiplier is equal to 1 when:

1. reserves < deposits.
2. reserves > deposits.
3. reserves = deposits.

b. The initial money supply is $1,500, of which $700 is currency held by the public. The desired reserve-deposit ratio is 0.1. Calculate the increase in the money supply associated with increases in bank reserves of $10. What is the money multiplier in this economy? Assume that individuals do not change their currency holdings.

c. A general rule for calculating the money multiplier is:

1. 1/(deposit ratio-desired reserve).
2. 1/deposit ratio.
3. 1/desired reserve.
4. 1/(desired reserve-deposit ratio).

d. Suppose the Fed wanted to reduce the money multiplier, perhaps because it believes that change would give it more precise control over the money supply. In order to achieve its goal, the Fed would:

1. decrease the ratio of reserves to deposits.
2. increase reserve requirements.
3. increase the money supply.
4. decrease reserve requirements.

Answers

Answer: a. 2. in a fractional-reserve banking system, each dollar of reserves can support more than one dollar of deposits, thereby increasing the money supply by more than $1.

3. reserves = deposits.

b. $900.

Multiplier is 10

c. 4. 1/(desired reserve-deposit ratio).

d. 2. increase reserve requirements.

Explanation:

a. In fractional-reserve banking system, $1 of deposits can be used to create more than $1 in money supply as the money is continuously deposited into other bank accounts. This enables the money to keep increasing until it theoretically reaches a certain amount determined by the money Multiplier.

If the money Multiplier is equal to 1 which is a very rare occasion, this means that the amount required in reserves is equal to the deposits. $1 of deposits will yield a $1 in money supply increase.

b. The desired reserve-deposit ratio is 0.1. For every $1, 0.1 goes to reserves.

If bank reserves have increased by $10 then that means that deposits are,

0.1x = 10

x = $100

Deposits not in reserve are,

= 0.9 * 100

= $90

The money Multiplier can be calculated with the formula,

= 1/(desired reserve-deposit ratio)

= 1/0.1

= 10

Increase in money supply is therefore,

= $90 * 10

= $900

c. As earlier mentioned, option D is the general rule for calculating the money Multiplier.

= 1/(desired reserve-deposit ratio)

d. If the Fed increases the reserve requirement, the effect would be a reduction in the money supply because the denominator is now higher.

For instance, reserve requirement of 0.1 vs 0.2.

At 0.1, the money supply would be,

= 1/0.1

= 10

At 0.2, the money supply would be,

= 1/0.2

= 5

The higher the reserve requirement, the lower the Multiplier.

A series of five constant-dollar (or real-dollar) uniform payment of $897.63 is made begining at the end of first year. Assume that the general inflation rate is 18.3% and the market interest rate is 18.3% during this inflationary period.
The equivalent present worth of the series is:_________.

Answers

Answer:

The equivalent present worth of the series is $4,182.21

Explanation:

Fix periodic payments for a specific period of time are annuity payment and the payments made at the start of each period is known as advance annuity.

As per given data

Inflation per year = 18.3% / 5 = 3.66%

numbers of period = 5 years

Payment per period = $897.63

Use following formula to calculate the present value of annuity payments

PV of annuity = P x ( 1 - ( 1 + r )^-n / r

Where

P = Payment per period = $897.63

r = rate in of interest = 3.66%

n = numbers of periods = 5 years

Placing values in the formula

Equivalent present worth of the series = $897.63 + $897.63 x ( 1 - ( 1 + 3.66% )^-(5-1) / 3.66% )

Equivalent present worth of the series = $4,182.21

Variable costs as a percentage of sales for Lemon Inc. are 62%, current sales are $563,000, and fixed costs are $189,000. How much will operating income change if sales increase by $39,200

Answers

Answer:

Effect on income= $14,896 increase

Explanation:

Giving the following information:

Variable costs= 62% of sales

Current sales are $563,000

Fixed costs are $189,000.

Sales increase by $39,200.

To calculate the effect on income, we need to use the following formula:

Effect on income= sales increase*contribution margin ratio

Effect on income= 39,200*(1 - 0.62)

Effect on income= $14,896 increase

Prove:

Actual income= 563,200*0.38 - 189,000= 25,016

New income= 602,400*0.38 - 189,000= 39,912

Difference= $14,896 increase

Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,100 helmets, using 2,077 kilograms of plastic. The plastic cost the company $13,708. According to the standard cost card, each helmet should require 0.62 kilograms of plastic, at a cost of $7.00 per kilogram.
Required:
1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets?
2. What is the standard materials cost allowed (SQ × SP) to make 3,100 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)

Answers

Answer:

1. 1,922

2. $13,454

3. $254 Unfavorable

4. 831 Favorable

$1,085 Unfavorable

Explanation:

1. The computation of standard quantity of kilograms of plastic is shown below:-

Standard quantity of kilograms allowed = Helmets manufactured × Required kilograms of plastic

= 3,100 × 0.62

= 1,922

2. The computation of standard materials cost allowed is shown below:-

Standard cost allowed for actual output = Standard quantity of kilograms allowed × Cost per kilogram

= 1,922 × $7

= $13,454

3. The computation of materials spending variance is shown below:-

Materials spending variance = Plastic cost - Standard cost allowed for actual output

= $13,708 - $13,454

= $254 Unfavorable

4. The computation of materials price variance and the materials quantity variance is shown below:-

Materials price variance = Plastic cost - (Plastic in kilograms × Cost per kilograms)

= $13,708 - (2,077 × $7)

= 831 Favorable

Materials quantity variance = Cost per kilograms × (Plastic in kilograms - Standard quantity of kilograms allowed)

= $7 × (2,077 - 1,922)

= $1,085 Unfavorable

So, we have applied the above formulas.

Mostert Music Company had the following transaction inMarch:a. Sold instruments to customers for $10,000; received$ 6,000 in cash and the rest on account.The cost of theinstruments was $7,000.
b.Purchased $4,000 of new instruments inventory; paid$1,000 in cash and owed the rest on account.
c. Paid $600 in wages for the month.
d. Received a $200 bill for utilities that will be paidin April.
e. Received $1,000 from customers as deposits on ordersof new instruments to be sold to the customers in April.Complete the following statement:Cash BasisIncomeStatementAccrualBasis Income StatementRevenues:Revenues:CashSales___________Salesto customers_________Customerdeposits___________Expenses:Expenses:Inventorypurchases__________Costof sales__________Wagespaid__________Wagesexpense__________Utilitiesexpense__________CashIncome___________(dbl underline)Netincome_________(dbl underline)

Answers

Answer: The answer is given below

Explanation:

It should be noted that for the cash basis income statement, the revenue were cash sales of $6000 and customer deposit of $1000 making a total of $7000. The expenses were the inventory purchased of $1000 and the wages paid of $600 making $1600. Cash income was now:

= $7,000 - $1600

= $5400

For the accrual income statement, the revenue was $10000 and expenses were $7800. The cash Income was now: $10,000 - $7800 = $2,200

Check the attachment for further clarification.

Under a partnership agreement, Sherry is to receive 25% of the partnership income, but not less than $10,000. The partnership has net income of $30,000 for Year 1 before any allocation. Calculate Sherry’s guaranteed payment from the partnership for Year 1.

Answers

Answer:

$2,500

Explanation:

since Sherry will receive at least $10,000 or 25% of the partnership's net income, then the guaranteed payment = $10,000 - ($30,000 x 25%) = $10,000 - $7,500 = $2,500

When partnerships include guaranteed minimum payments, he/she will receive that amount even if the partnership's net income is not high enough. If the partnership's net income would have been $40,000 or more, then there would be no guaranteed payment (= $40,000 x 25% = $10,000).

Twinte Cars, a California corporation, has internal corporate requirements that stipulate a three-year payroll document retention period. It enters into a contract with an international company that mandates a six-year payroll document retention requirement. How should Twinte Cars balance these requirements

Answers

Answer:

-The period for retention could be up to 8 years depending upon the circumstances.

-The benefits and records may be called to evidence

Explanation:

In this scenario Twinte cars needs to balance internal requirement of 3 year payroll document retention period and the contract if 6 year payroll retention with the international company. Usually foreign companies have a higher retention requirement.

A way out of this predicament will be to get a new retention period of 8 years. This will satisfy requirements of the international company.

Also Twinte cars can provide benefits and records from their internal 3 year payroll retention to the international company

Portions of the financial statements for Peach Computer are provided below.PEACH COMPUTERIncome StatementFor the year ended December 31, 2021Net sales $ 1,875,000 Expenses: Cost of goods sold $ 1,080,000 Operating expenses 590,000 Depreciation expense 53,000 Income tax expense 43,000 Total expens 1,766,000 Net income $ 109,000 PEACH COMPUTERSelected Balance Sheet DataDecember 312021 2020 Increase (I)orDecrease (D)Cash $ 105,000 $ 86,500 $ 18,500 (I)Accounts receivable 45,300 50,500 5,200 (D)Inventory 78,000 56,500 21,500 (I)Prepaid rent 3,300 5,600 2,300 (D)Accounts payable 48,000 38,500 9,500 (I)Income tax payable 5,300 11,500 6,200 (D)Required:Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows and any decrease in cash as negative amounts.)

Answers

Answer:

Cash flow from Operating Activities

Cash Receipts from Customers                   $1,880,200

Cash Paid to Suppliers and Employees     ($1,679,700)

Cash Generated from Operations                $ 200,500

Income taxes paid                                           ($49,200)

Cash flow from Operating Activities              $ 151,300

Explanation:

Cash Receipts from Customers Calculation

Net sales                                                    $ 1,875,000

Add Decrease in Accounts receivable          $ 5,200

Cash Receipts from Customers                $1,880,200

Cash Paid to Suppliers and Employees

Cost of goods sold                                   $ 1,080,000

Add Operating Expenses

Operating expenses                                   $ 590,000

                                                                    $1,670,000

Increase in Inventory                                      $ 21,500

Decrease in Prepaid rent                               ($ 2,300)

Increase in Accounts payable                       ($ 9,500)

Cash Paid to Suppliers and Employees    $1,679,700

Income taxes paid Calculation

Open an Income taxes Payable T - Account as follows :

Debits :

Closing Balance                                 $ 5,300

Cash (Balancing figure)                    $49,200

Totals                                                 $54,500

Credit :

Opening Balance                              $ 11,500

Income Statement                            $43,000

Totals                                                 $54,500

Leona Figueroa is a new employee in the payroll department of Octolium Computers. After working at the company for one week, she asks you why it is so important to submit new hire documentation. What guidance will you offer her

Answers

Answer:

The hiring documents of an employee are very important because they allow to legalize and consider as approved the function or work that a worker is going to perform.

Explanation:

The new employee recruitment documentation allows us to check if it is really possible to carry out the hiring for that the documents must be complete as for example there must be a support of the identity document of the employee, a support of the social security as well as the number of affiliation, and a home support. After verification and compliance with these requirements, we proceed to contract.

Consider the role of management accounting in relation to the company for which you work (or have worked). Discuss how the principles of management accounting can be utilized. What specific managerial accounting activities would be useful?

Answers

Answer:

Role of management accounting :

1. provide internal information on operations

2. help in decision making

Utilization of management accounting principles

1. make or buy decisions

2. continuing or discontinuing of operations

Useful managerial Accounting Activities

1. planning

2. deciding on the alternative causes of action

Explanation:

Role of Management Accounting is to provide managers with information related to their operations.This includes the costs and revenue incurred, the deviations from the planned costs and revenue and profit targets.

This information would help to control costs and revenues or make certain decisions of continuing or discontinuing operating of a product or segment.

Thus managerial accounting activities that are useful are planning, deciding on the alternative causes of action, implementation, monitoring and control

The role of management accounting in a company is to analyze financial information for a period to assist managers in the decision-making process for achieving organizational goals.

The management accounting principles defined by the American Institute of CPAs (AICPA) are:

InfluenceRelevanceValueConfidence

Through the four global principles, management accounting activities such as strategic definition, control and direction will be managed more effectively.

The availability of data and information will provide greater support for the creation of value through greater vision of organizational environments, transparency and reliability to attract investments.

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https://brainly.com/question/15800664

Accounts Receivable Analysis A company reports the following: Sales $1,182,600 Average accounts receivable (net) 43,800 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables days

Answers

Answer:

a. The account Receivable Turnover is 27 times

b. 13.52 days approximately

Explanation:

1. Account Receivable Turnover = Net sales / Average Account Receivables

Account Receivable Turnover = $1,182,600 / $43,800

Account Receivable Turnover = 27 times

The account Receivable Turnover is 27 times

2. Number of days' sales in receivables days = (Average Account Receivables * 365 days) / Net sales

=(43,800 * 365) / 1,182,600

=13.5185

=13.52 days approximately

Denominator hours for May 15,000 Actual hours worked during May 14,000 Standard hours allowed for May 12,000 Flexible budget fixed overhead cost $45,000 Actual fixed overhead costs for May $48,000 Danske Company had total underapplied overhead of $15,000. Additional information is as follows: Variable Overhead: Applied based on standard direct labor hours allowed $42,000 Budgeted based on standard direct labor hours 38,000 Fixed Overhead: Applied based on standard direct labor hours allowed $30,000 Budgeted based on standard direct labor hours 27,000 What is the actual total overhead for the period?

Answers

Answer:

$87,000

Explanation:

As per given data

Actual hours = 15,000 hours

Standard hours = 14,000 hours

Standard hours allowed = 12,000 hours

Flexible budget fixed overhead cost = $45,000

Actual fixed overhead costs = $48,000

Underapplied overhead = $15,000

Variable Overhead:

Applied based on standard direct labor hours allowed = $42,000

Budgeted based on standard direct labor hours = 38,000 hours

Fixed Overhead:

Applied based on standard direct labor hours allowed = $30,000

Budgeted based on standard direct labor hours = 27,000 hours

Total Overhead is the sum of all the variable and fixed overheads applied to the products and under / over applied overheads.

Applied overheads are the amount of overheads applied using actual activity and standard rate.

Actual Overheads = Applied variable overheads + Applied fixed overheads + under applied overheads

Placing values in the formula

Actual Overheads = $42,000 + $30,000 + $15,000

Actual Overheads = $87,000


In 2009, because U.S. imports were $2,535 billion while exports were $2,116 billion:
A. imports exceeded exports by a sizeable $419 billion.
B. there was a huge influx of foreign capital into the U.S. economy.
C. government policy caused a lessening of foreign aid.
D. exports exceeded imports by a sizeable $419 billion.​

Answers

Answer:

  A. imports exceeded exports by a sizable $419 billion

Explanation:

Obviously imports had a greater value than exports. The difference in value is ...

  $2535 -2116 = $419 . . . billion

This observation matches choice A.

13) Baxter & Baxter has total assets of $710,000. There are 45,000 shares of stock outstanding with a market value of $28 a share. The firm has a net profit margin of 7.1 percent and a total asset turnover of 1.29. What is the price-earnings ratio?


Answers

Answer:

19.38

Explanation:

Baxter & Baxter

Market value share/ Percentage of profit margin ×(Total assets ×Total asset turnover)/Outstanding shares

Where:

Market value shares=28

Percentage of profit margin =71%

Total assets =710,000

Total asset turnover=1.29

Outstanding shares =45,000

Hence:

Price-earnings ratio =

$28/[0.071 ×($710,000 ×1.29)]/45,000

=19.38

Ready Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost pools.
Activity Cost Pool Cost Drivers Estimated Overhead Estimated Use
of Cost Driver per Activity
Loading and unloading Number of pieces $85,785 90,300
Travel Miles driven 468,000 585,000
Logistics Hours 65,520 3,120
Compute the activity-based overhead rates for each pool.
Activity Cost Pool Activity-Based overhead Rate
Loading and unloading per piece
Travel per mile
Logistics per hour
Determine the overhead allocated to Job XZ3275 which has 150 pieces, requires 200 miles of driving, and 0.75 hours of logistics.

Answers

Answer:

Total allocation= $318.25

Explanation:

Giving the following information:

Loading and unloading: Number of pieces - $85,785 - 90,300

Travel: Miles driven - $468,000 - 585,000

Logistics: Hours - $65,520 - 3,120

Determine the overhead allocated to Job XZ3275 which has 150 pieces, requires 200 miles of driving, and 0.75 hours of logistics.

First, we need to calculate the estimated overhead rate for each activity:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Loading and unloading= 85,785/90,300= $0.95 per piece

Travel= 468,000/585,000= $0.8 per mile

Logistics= 65,520/3,120= $21 per hour

Finally, we can allocate overhead to Job XZ3275:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Loading and unloading= 0.95*150= $142.5

Travel= 0.8*200= $160

Logistics= 21*0.75= $15.75

Total allocation= $318.25

Felinas Inc. produces floor mats for cars and trucks. The owner, Kenneth Felinas, asked you to assist him in estimating his maintenance costs. Together, Mr. Felinas and you determined that the single best cost driver for maintenance costs was machine hours. Below are data from the previous fiscal year for maintenance expense and machine hours:
Month Maintenance Expense Machine Hours
1 $ 3,480 2,380
2 3,670 2,480
3 3,850 2,580
4 3,980 2,610
5 3,980 2,460
6 4,400 2,620
7 3,970 2,600
8 3,780 2,570
9 3,500 2,390
10 3,120 2,260
11 2,960 1,650
12 3,240 2,250
Using the high-low method, total monthly fixed cost is calculated to be:__________
a. $296.
b. $224.
c. $460.
d. $162.
e. $552.

Answers

Answer:

Fixed costs= 510

Explanation:

Giving the following information:

Month Maintenance Expense Machine Hours

1 $ 3,480 2,380

2 3,670 2,480

3 3,850 2,580

4 3,980 2,610

5 3,980 2,460

6 4,400 2,620

7 3,970 2,600

8 3,780 2,570

9 3,500 2,390

10 3,120 2,260

11 2,960 1,650

12 3,240 2,250

To calculate the fixed costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (4,400 - 2,960) / (2,620 - 1,650)

Variable cost per unit= $1.484536

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 4,400 - (1.484536*2,620)

Fixed costs= $510

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,960 - (1.484536*1,650)

Fixed costs= 510

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