Answer:
$15,800
Explanation:
Calculation to compute diluted earnings per share
Using this formula
Diluted earnings per share=Shares of common stock- (Shares of common stock×Warrants exercisable ÷Average market price of the common stock )
Let plug in the formula
Diluted earnings per share=79,000-(79,000×$20÷$25)
Diluted earnings per share=79,000-$63,200
Diluted earnings per share=$15,800
Therefore $15,800 diluted earnings per share will increase the weighted average number of outstanding shares.
Stangol Co. uses process costing to account for the production of highlighter pens. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Cost per equivalent unit has been calculated to be $8.91 for conversion costs and $7.1212 for materials. 13,200 units were worked on during the period. Ending inventory still in process was 4,800 units (100% complete for materials, 50% for conversion). The value of ending inventory using the weighted average method would be closest to: Multiple Choice $55,565.76 $139,000.00 $41,232.20 $73,165.40
Answer:
$55,565.76
Explanation:
Calculation for the value of ending inventory using the weighted average method
First step is to find the Equivalent units
Equivalent units = (4,800 × 50%)
Equivalent units = 2,400
Second step is to find the conversion costs
Conversion costs (4,800 × 100%)
Conversion costs= 4,800
Last step is to calculate for the value of ending inventory
Ending inventory= ($8.91 × 2,400) + ($7.1212× 4,800)
Ending inventory=$21,384+$34,181.76
Ending inventory=$55,565.76
Therefore the value of ending inventory using the weighted average method would be closest to: $55,565.76
ank states that its decision to offer home loans at an extremely low initial, but variable, rate is rooted in the idea that all have a right to owning an affordable home. The bank does not state that the loans are packaged in a product sold to another, larger bank that may or may not work with customers in difficult situations. The smaller bank is no longer exposed to the risk of longer-term loans, and makes a large profit. Which moral theory is the bank operating under?
Answer: Ethical Egoism
Explanation:
The theory of Ethical Egoism posits that people or entities are well within their rights to act in a manner that benefits their best interest and in so doing are being good in their own right.
The small bank acted in such a manner that it left itself unexposed to risk whilst still making quite a huge profit. The small bank pursued its own interests and so followed the moral theory of Ethical Egoism.
You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.04 annually. If you use a discount rate of 0.09 for investment products, what is the present value of this growing perpetuity? Round to two decimal places.
Answer:
The present value of this growing perpetuity is $499,200.
Explanation:
If cashflow is growing at a constant rate, then we call this a growing perpetuity.
Present Value of Growing Perpetuity = [Payment × ( 1 + growth rate)] ÷ [(discount rate - growth rate)]
= $24,000 (1.04) ÷ (0.09 - 0.04)
= $499,200
Ross would like to dispose of some land he acquired five years ago because he believes it will not continue to appreciate. Its value has increased by $50,000 over the five-year period. He also intends to sell stock that has declined in value by $50,000 during the eight-month period he has owned it. Ross has four offers to acquire the stock and land. Identify the tax issues relevant to Ross in disposing of this land and stock. Buyer 1: Exchange land. Buyer 2: Purchase land for cash. Buyer 3: Exchange stock. Buyer 4: Purchase stock for cash.
Answer:
Buyer 1: Exchange land.
Qualifies for §1031 deferral treatment. If Ross disposes of the land in exchange for another asset, he can differ the payment of capital gains taxes.
Buyer 2: Purchase land for cash.
If Ross sells the land for cash, then he will have a $50,000 long term capital gain which can be offset against a long term capital gain or a short term capital loss. In this case, Ross may want to sell the stocks in order to offset any taxes.
Buyer 3: Exchange stock.
The loss on the sale of stocks cannot be deferred (does not qualify for §1031 deferral treatment).
Buyer 4: Purchase stock for cash.
If Ross sells the stock for cash, he will be able to report the $50,000 short term capital loss, and he is able to offset the long term capital gain from selling the land.
what is the purpose of the accounting debit and credit system
Explanation:
to make sure that both are balanced
Rousey, Inc., had a cash flow to creditors of $16,920 and a cash flow to stockholders of $7,496 over the past year. The company also had net fixed assets of $49,680 at the beginning of the year and $57,100 at the end of the year. Additionally, the company had a depreciation expense of $12,228 and an operating cash flow of $51,069. What was the change in net working capital during the year?
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.
Every decision involves trade-offs because:________
there are always alternatives that we give when we choose one thing over another
Nicole is a calendar-year taxpayer who accounts for her business using the cash method. On average, Nicole sends out bills for about 512,000 of her services at the first of each month. The bills are due by the end of the month, and typically 70 percent of the bills are paid on time and 98 percent are paid within 60 days.
a) Suppose that Nicole is expecting a 2 percent reduction in her marginal tax rate next year. Ignoring the time value of money, estimate the tax savings for Nicole if she postpones mailing of bills for December until January 1 of next year.
b) Describe how the time value of money affects your calculations.
c) Would this tax savings strategy create any additional business risks? Explain.
Answer:
a) I guess that Nicole bills $12,000 per month, not $512,000.
Assuming that the last time Nicole billed her customers was November, she was able to collect $11,760 before the year ended. I will also assume that the remaining $240 are uncollectible.
If Nicole postpones billing her customers during December, her taxable income as a cash basis taxpayer will decrease by $12,000 x 70% = $8,400
she will be able to save $8,400 x 2% = $168 in current taxes, but she will have to pay them next year anyways.
b) The time value of money should affect Nicole's calculations because she is saving the interests that could be earned by $168 in 1 year. We are not given any specific interest rate but we could use 6% as an example. Nicole will gain $168 x 6% = $10.08
But she will also lose potential interests earned on the $8,400 that she billed later. Using the same interest rate, 6%, she will lose $8,400 x 6% x 1/12 (only 1 month) = $42.
That means that the net result from this = $10.08 - $42 = -$31.92.
As you can see, Nicole is losing money. The higher the interest rate, the more money she will lose.
c) The risk of increasing uncollectible accounts will always exist. Nicole already has around 2% of uncollectible accounts, and combining two bills at one time might lead to a higher percentage of uncollectible accounts. Of course, this depends on her clients, but the risk will increase a little bit or a lot, but it will increase.
Which of the following is one of the reasons that the supply curve for loanable funds is upward sloping? A lower real interest rate makes saving less appealing. A higher real interest rate makes borrowing less expensive. A lower real interest rate encourages domestic consumers to purchase foreign securities and discourages foreigners from purchasing domestic securities. A lower interest rate makes borrowing less expensive
Answer:
A lower real interest rate makes saving less appealing.
Explanation:
The lower the interest rate, the lower the amount saved and the higher the interest rate, the higher the amount of money saved. There is a positive relationship between interest rate and the supply of loanable funds. This is why the supply curve for loanable funds is upward sloping
news analysts are allowed to give a option
A.True
B.False
Answer:
False
Explanation:
They can only stick to facts.
During 2024, Passage Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: 2021 $60,000 understated 2022 $75,000 overstated Prior to any adjustments for these errors, working capital at December 31, 2023, would be:
Answer: $75,000 overstated
Explanation:
Inventory errors will correct themselves automatically over a 2 year period because they will balance each other out. For instance an inventory overstatement in one year will increase revenue but because it will be higher than it should be as the opening balance of the next year, it will reduce revenue by an equal amount in that year.
The only relevant error therefore is the 2022 error.
Inventory is overstated by $75,000 which means it will inflate the Net Working Capital by the same amount.
In order to fund her retirement, Karen needs her portfolio to have an expected return of 13.5 percent per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock 3. If Stocks 1 and 2 have expected returns of 9 percent and 10 percent per year, respectively, then what is the minimum expected annual return for Stock 3 that is likely to enable Karen to achieve her investment requirement? (Round answer to 1 decimal place, e.g. 17.5%.)
Answer:
The return of stock C should be 25% for Karen to achieve her target.
Explanation:
The expected return on a portfolio is the weighted average of the individual stocks' returns that form up the portfolio. To calculate the expected return on the portfolio we use the following formula,
Portfolio return = wA * rA + wB * rB + ... + wN * rN
Where,
w is the weight of each stock in the portfolio r is the return of each stock
Let return of Stock C be x.
0.135 = 0.25 * 0.09 + 0.5 * 0.1 + 0.25 * x
0.135 = 0.0225 + 0.05 + 0.25x
0.135 - 0.0225 - 0.05 = 0.25x
0.0625 = 0.25x
x = 0.0625 / 0.25
x = 0.25 or 25%
The return of stock C should be 25% for Karen to achieve her target.
Three phases of the management process are planning, directing, and controlling. Match the following descriptions to the proper phase. a. Process by which managers, given their assigned levels of responsibilities, run day-to- day operations. b. Isolating significant departures from plans for further investigation and possible remedial action. It may lead to a revision of future plans. c. Developing long-range courses of action to achieve goals. Phases:1. Planning 2. Directing 3. Controlling
Answer:
1. Directing.
2. Controlling.
3. Planning.
Explanation:
Management can be defined as the process of controlling or dealing with the affairs of an organization such as employees, policies etc in order to achieve set goals and objectives. The three (3) phases of the management process are planning, directing, and controlling.
a. Directing: process by which managers, given their assigned levels of responsibilities, run day-to- day operations.
b. Controlling: isolating significant departures from plans for further investigation and possible remedial action. It may lead to a revision of future plans.
c. Planning: developing long-range courses of action to achieve goals.
Which of the following is a drawback of Porter’s five forces model? Multiple Choice Managers cannot determine the changing speed of an industry or the rate of innovation. It fails to provide a basis for deriving implications for a firm’s strategic position within an industry. The model describes competition narrowly as a firm’s closest competitors. The model fails to consider that threat of substitutes can come from outside a given industry.
Answer: Managers cannot determine the changing speed of an industry or the rate of innovation.
Explanation:
A drawback of Porter’s five forces model is that managers cannot determine the changing speed of an industry or the rate of innovation.
With Porter's five-forces-plus-complements model, it is difficult for an economic entity to determine the rate if innovation in an organization or the changing speed of the industry and this means that the managers have to repeat their analysis constantly so as to have a picture of their industry that is more accurate.
Three major segments of the transportation industry are motor carriers such as YRC Worldwide, railroads such as Union Pacific, and transportation logistics services such as C.H. Robinson Worldwide, Inc. Recent financial statement information for these three companies follows (in thousands): YRC Union Pacific C.H. Robinson Sales $4,832,400 $21,813,000 $13,476,084 Average total assets 1,939,800 53,486,000 3,199,348 a. Determine the asset turnover for all three companies. Round to one decimal place. YRC Union Pacific C.H. Robinson
Answer and Explanation:
The formula that is to be used to determine the asset turnover is shown below:
Asset turnover is
= Net sales ÷ Average total assets
For YRC
= $4,832,400 ÷ $1,939,800
= 2.5 times
For Union Pacific
= $21,813,000 ÷ $53,486,000
= 0.4 times
For C.H robinson
= $13,476,084 ÷ $3,199,348
= 4.2 times
We simply applied the above formula
Today is June. Suppose you buy a futures contract for 42,000 gallons of RBOB gasoline delivered in December. The contract settles at $1.50 per gallon today. You decide to exit in August, when the contract settles at $1.45 per gallon. Calculate your payoff from holding the position between June and August
Answer:
The payoff from holding the position between June and August is $2,100 "loss"
Explanation:
Since I had gone long on the contract and it has gone down in value, I would be having a loss. The value of the loss will be:
= ($1.5 - $1.45) x 42,000 gallon of RBOB gasoline
= $0.05 * 42,000 gallon of RBOB gasoline
= $2,100 (Loss)
Huggies is a popular brand of diapers that offers a variety of sizes and styles to fit babies based on weight, gender, and activity, such as swim diapers. Huggies devotes significant resources to conduct market research to understand customer needs and to ensure that its diaper products meet the needs of the customer. Rather than make just one diaper formulation, the products are highly customized and appeal to each customer's unique situation. This highlights one of the key differences between sales-oriented firms and marketing-oriented firms, which is _______.
Answer:
c. the organization's approach to marketing its products to specific customer segments rather than "everyone" or the average customer
Explanation:
Options includes: "a. the organization's primary goal to achieve profitability through sales volume , b. the organization's mission to produce the highest volume of products in a cost-efficient manner, c. the organization's approach to marketing its products to specific customer segments rather than "everyone" or the average customer , d. the organization's internal, sales-oriented focus
This highlights one of the key differences between sales-oriented firms and marketing-oriented firms, which is the organization's approach to marketing its products to specific customer segments rather than "everyone" or the average customer.
Sales oriented firm pursue the idea that the companies will produce products but will require effort from sales team to sell the product. They believe the success of the companies relies on the aggressiveness of the sales people.
Marketing oriented firm pursue the idea that the companies need to communicate the value proposition of the product. That if the value of the product can be successfully communicated, then the product will sell with considerable less effort from other departments.
Answer: c. the organization's approach to marketing its products to specific customer segments rather than "everyone" or the average customer.
g Christine has a current annual income of $80,000 but estimates she will need nominal income of $120,000 when she retires in 20 years. Her retirement portfolio is expected to earn 6% annually over time and she assumes inflation will average 2% a year over time. She estimates her retirement stage of life will last 25 years. If her nominal income remains constant, the amount she needs in her retirement portfolio to finance her retirement stage of life is closest to: A. $1,626,040. B. $1,964,420 C. $1,890.290. D. $2,389,670. E. 2,003,700.
Answer:
A. $1,626,040
Explanation:
Since we are dealing with nominal values, we do not need to adjust them to inflation. We are given the following information:
Christine expects to live 25 years after retiringher retirement account earns 6% annuallyshe expects to withdraw $120,000 per yearthis is an ordinary annuity and we must determine its present value (in 25 years):
present value = 120,000 x 12.783 (PV annuity factor, 6%, 25 periods) = $1,533,960
the closest option is A. $1,626,040
A registered representative suggests and then implements a strategy in a client's portfolio. This strategy involves the RR coming up with certain determinations in relation to an appropriate distribution of investments in the client's account and the maintenance of this mix of investments over time. Which of the following most accurately describes the strategy that has been implemented? (A) The RR is using only a technical analysis approach to allocation. (B) The RR is using capital asset pricing model to determine allocation. (C) The RR is using a form of asset allocation for the client. (D) The RR is using a strategy purely focused on diversification for the client.
Answer:
(C) The RR is using a form of asset allocation for the client.
Explanation:
Given that Asset allocation is a term that describes the undertaking of an investment technique. This technique tries to offset risk with reward by diversifying the proportion of each asset in an investment portfolio based on the investor's preference, which is influenced by risk tolerance, and investment period.
Hence, in this situation, the right answer is option C: The RR is using a form of asset allocation for the client.
Which one of the following statements is true?1) If the market price falls below the Average Fixed Costs (AFC) of production then the firm will minimize losses by "shutting down" production.2) A firm will earn an economic profit if it sells output at a market price that exceeds the Average Variable Costs (AVC) of production.3) At the current level of production (q) the Marginal Revenue is (MR=) $25 and Marginal Cost is (MC=) $20 the perfectly competitive firm should decrease its' level of production.A. Only Statement (1) is true.B. Only Statements (2) and (3) are true.C. Only Statement (3) is true.D. Only Statements (1) and (3) are true.E. None of the Statements is true.
Answer: E. None of the Statements is true.
Explanation:
Statement 1 is false because the firm should shutdown only after market prices have dropped below Average Variable Costs not Average Fixed costs because the fixed costs have already or will be incurred regardless. The best way to limit losses would be to stop the activity that adds more costs per unit which would be variable costs.
Statement 2 is also false because profit will be made when the firm sells at a price that exceeds Average Total Cost not just Average Variable Cost.
The firm maximises profit at a point where Marginal Revenue equals Marginal Cost. If Marginal Revenue exceed marginal cost as it the case here, it means resources are being underutilised and the perfectly competitive firm needs to produce more to maximise profit not less. Statement 3 is therefore wrong as well.
Which two of the three financial statements would you find Net Income on?
A) Income Statement and Balance Sheet
B) Balance Sheet and Cash Flow Statement
C) Income Statement and Cash Flow Statement
D) Net Income is on all three statements.
Answer:
C) Income Statement and Cash Flow Statement
Explanation:
The Income Statement shows a clear separate entry for the Net income which is calculated after all the deductions and additions.
Net Income is the first balance shown on the cash flow statement after which the calculations are carried out to find the flow of cash in and out of the company.
Net income is also shown in the Balance Sheet but not separately but together with retained earnings. It is added to the retained earnings and the amount is shown as a whole amount of retained earnings or shown as a change in equity.
So best answer is C because the question asked is where would you find Net Income on?
Meaning separately. So it is separately present on Income Statement and Cash Flow Statement.
Otherwise it is present on all three statements ( on balance sheet as part of retained earnings or equity).
Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $325,000; Cash paid for rent, $37,000; Cash paid to employees for services rendered during the year, $117,000; Cash paid for utilities, $47,000. In addition, you determine that customers owed the company $57,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $1,700 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.
Answer:
Explanation:
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Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $325,000; Cash paid for rent, $37,000; Cash paid to employees for services rendered during the year, $117,000; Cash paid for utilities, $47,000. In addition, you determine that customers owed the company $57,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $1,700 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.
The market for apartments was captured by a monopolist who charges high rents to some renters, leading many renters to complain to their local government. The city council in response decides to implement a price ceiling on apartments of $500. Demand in this market is represented by the
Answer:
70 units$700Explanation:
1. The demand curve is given and the price is given as well. Substitute the price ceiling into equation.
P = 1,200 - 10q
500 = 1,200 - 10q
q = (1,200 - 500 ) / 10
q = 70 units
2. If there was no price ceiling and 50 units, market price would be;
P = 1,200 - 10 * 50 apartments
P = $700
On December 31, 2016, the accounts of Leuz Architect Services showed credit balances in its Common Stock and Retained Earnings accounts of $60,000 and $30,000, respectively. The company's stock issuances for 2017 totaled $12,000, and it paid $10,000 cash dividends in 2017. During 2017, the company had net income of $33,000. What is the total stockholders' equity for Leuz Architect Services at December 31, 2017
Answer:
The total stockholder's Equity at December 31, 2017 is $125,000
Explanation:
December 31, 2016
Common Stock $60,000
Retained Earnings $30,000
Stockholder's Equity $90,000
Now, we add the $12,000 stock issuance to common stock, and substract the $10,000 dividend payment from retained earnings.
2017
Common Stock $72,000
Retained Earnings $20,000
Stockholder's Equity $92,000
Finally, we add the net income of $33,000 to retained earnings
December 31, 2017
Common Stock $72,000
Retained Earnings $53,000
Stockholder's Equity $125,000
A customer wishes to invest in real estate, believing that current market prices are depressed and that they are ready for a major rebound. The customer wishes to make an investment that offers diversification and liquidity. Which type of real estate investment would be a suitable recommendation
Answer: Real Estate Investment Trust
Explanation:
The options are:
A Real Estate Limited Partnership
B. Real Estate General Partnership
C. Real Estate Investment Trust
D. Real Estate Time Share
From the options given, the real estate investment trust is the only liquid investment. It is identical to a closed-end fund because its shares are being listed and traded just like every other stock.
It should be noted that for both Real Estate Limited Partnerships and the Real Estate General Partnerships, there is no trading market for them as they're highly liquid while the Real Estate Time Shares are vacation product and not investment.
g Bonds of ABC Corp. are currently priced at $932. The bonds have a face value of $1,000. Coupon payments occur twice per year. The bonds have 12 years left until maturity. These bonds are: a. discount bonds. b. premium bonds. c. par bonds. d. money market securities. e. deluxe bonds.
Answer:
a. discount bonds
Explanation:
When the Price of the Bond is less than the par value (face value) of the bond, we say that the bonds are trading at a discount.
When the Price of the Bond is greater than the par value (face value) of the bond, we say that the bonds are trading at a premium.
In this case the price is $932 and the face value is $1,000, thus the bonds are discount bonds.
Suppose you are an operations manager for a plant that manufactures batteries. Give an example of how you could use descriptive statistics to make better managerial decisions. Give an example of how you could use inferential statistics to make better managerial decisions.
Please find full question attached
Answer:
Inferential statistics
Descriptive statistics
inferential statistics
descriptive statistics
Descriptive statistics
Inferential statistics
Explanation:
Descriptive statistics describes data and gives us a picture of what the data summary looks like using such things as mean and central tendency measures. Inferential statistics on the other hand aims to make predictions using the data based on data analysis such as collecting sample from population and constructing hypotheses to estimate outcomes for the general population. Example in the question, the first is inferential statistics as we make generalized predictions on batteries using data samples from the population of batteries of a particular type.
Ben is assigned by his employer to improve an ultrasonic range-finding device. While working on the improvement, he recognizes that a novel modification of the equipment might be applicable to military submarines, which, if successful, could be worth a lot of money to his employer. However, Ben is a pacifist, a person who opposes war of any kind, and does not want to be involved in military work. He does not develop the idea himself or mention it to anybody else in the company. He has signed an agreement that all inventions he produces on the job are the property of the company but does not believe the agreement is relevant to this situation. If Ben decides whether the potential military application would be used for offensive aims, or only used for defensive purposes, his issue is primarily:
Answer:
1. He has not developed the idea yet
2. His employer knows he his a pacifist so he has the delima is he ethically correct to not develop a product that can be used for warfare.
Explanation:
In this scenario Ben signed an agreement with his employer that all ideas he has developed on the job and while working with the company is a property of the company.
This is a common agreement that gives a company property rights over work developed by their employees.
However since Ben is a pacifist he has an ethical dilemma when he has an idea that can weaponize an ultrasonic range-finding device.
He is justifying his decision by saying the idea has not been developed yet and his employer will not expect him to develop such technology since he is a pacifist.
Inventory Valuation under Absorption Costing Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity—at 20,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $ 80,000 Direct labor 101,400 Variable overhead 15,600 Fixed overhead 54,600Required: 1. Calculate the unit cost for each of these four costs. Round your answers to the nearest cent. Direct Materials Cost $ Direct Labor Cost $ Variable Overhead Cost $ Fixed Overhead Cost $ 2. Calculate the cost of one unit of product under absorption costing. Round your answer to the nearest cent. $ 3. How many units are in ending inventory? $ 4. Calculate the cost of ending inventory under absorption costing. $
Answer:
Required 1
Direct Materials Cost = $4.00
Direct Labor Cost = $5.07
Variable Overhead Cost = $0.78
Fixed Overhead Cost = $2.73
Required 2
Unit Cost = $12.58
Required 3
Units in Ending Inventory = 1,100
Required 4
Cost of ending inventory = $13,838
Explanation:
Unit Cost Calculations :
Direct materials = $ 80,000 ÷ 20,000 units
= $4.00
Direct labor = $101,400 ÷ 20,000 units
= $5.07
Variable overhead = $15,600 ÷ 20,000 units
= $0.78
Fixed overhead = $54,600 ÷ 20,000 units
= $2.73
Unit Cost (Absorption Costing) = All Manufacturing Costs
= $4.00 + $5.07 + $0.78 + $2.73
= $12.58
Units in Ending Inventory = Opening Inventory Units + Production - Sales
= 0 + 20,000 units - 18,900 units
= 1,100
Cost of ending inventory = Unit Cost × Units in Ending Inventory
= $12.58 × 1,100
= $13,838
Kilgore Company experienced the following events during its first accounting period. (1) Issued common stock for $5,000 cash. (2) Earned $3,000 of cash revenue. (3) Paid a $4,000 cash to purchase land. (4) Paid cash dividends amounting to $400. (5) Paid $2,200 of cash expenses. The market value of the land at the end of the accounting period was $4,300. Based on this information the amount of total assets appearing on the year-end balance sheet is
Answer: $5400
Explanation:
An asset is a property or an item that is owned by an economic entity such as an individual or firm which has a value and can be used by its owner to meet obligations and liabilities.
Based on this information the amount of total assets appearing on the year-end balance sheet will be:
Cash Revenue - Cash expenses
= $5000 + $3000 - $4000 - $400 - $2200
= $1400
Land = $4000
Cash + Land
= $1400 + $4000
= $5400
