Answer:
b. Corrected 2020 cost of goods sold = $ 1,320,320.
b. Corrected retained earnings = $5,377,860.
Explanation:
a. Determine the corrected amounts for 2020 cost of goods sold
An overstatement of the beginning inventory has to be deducted from the reported cost of good sold since the amount of the overstatement was added to the cost of goods sold initially.
On the other hand, an overstatement of the ending inventory has to be added to the reported cost of good sold since the amount of the overstatement was deducted to the cost of goods sold initially.
Therefor, we have:
Corrected 2020 cost of goods sold = $1,385,600 - $103,320 + $38,040 = $ 1,320,320.
b. Determine the corrected amounts for December 31, 2020, retained earnings
In this case, the amount of overstatement of the ending inventory has to be deducted from the reported retained earning since the retained earning was initially overstated by that amount.
Therefore, we have:
Corrected retained earnings = $5,415,900 - $38,040 = $5,377,860
Calculate the times interest earned ratio using the financial statement data shown below. Current liabilities $185 Income before interest and taxes $170 10% Bonds, long-term 360 Interest expense 36 Total liabilities 545 Income before tax 134 Stockholders' equity Income tax 29 Common stock 222 Net income $105 Retained earnings 289 Total stockholders' equity 511 Total liabilities and equity $1,056HHF's times interest earned ratio is:______.a. 10.00.b. 3.14.c. 1.54.d. 2.14.Current liabilities $180 Income before interest and taxes $11810% Bonds, long-term 360 Interest expense 36Total liabilities 540 Income before tax 82Shareholders' equity Income tax 20Capital stock 201 Net income $62Retained earnings 283Total shareholders'equity 484Total liabilities and equity $1,024HHF's debt to equity ratio is:________.a. 0.74.b. 0.56.c. 1.12.d. 1.90.
Answer:
1. Times interest earned ratio is 4.72
2. Debt to equity ratio is 1.12. Option C
Explanation:
Current liabilities = $185
Income before interest and taxes = $170
10% Bonds, long-term = $360
Interest expense = $36
Total liabilities = $545
Income before tax = $134
Stockholders' equity Income tax = $29
Common stock = $222
Net income = $105
Retained earnings = $289
Total stockholders' equity = $511
Total liabilities and equity = $1,056
1. Times interest earned ratio = Earnings before interest and taxes/Interest expenses
= $170 ÷ $36
= 4.72
Current liabilities = $180
Income before interest and taxes = $118
10% Bonds, long-term = $360
Interest expense = $36
Total liabilities = $540
Income before tax = $82
Shareholders' equity Income tax = $20
Capital stock 201 Net income = $62
Retained earnings = $283
Total shareholders'equity = $484
Total liabilities and equity = $1,024
2. Debt to equity ratio = Total debt ÷ Total equity
= 540 ÷ 484
= 1.12
If Katerina were delivering an expository speech about strip mining, she would be presenting _______________________. a. an informative process speech b. an exposition of a theory, principle, or law c. an exposition of political, economic, social, religious, or ethical issues d. an exposition of historical events and forces
Answer:
a. an informative process speech
Explanation:
An expository speech is one that explains the processes involved in doing an activity. It is meant to inform the audience on processes involved in executing a task.
In this scenario strip mining is the process of removing the top layer of soil in order to gain access to a mineral. This process is opposed to digging of deep holes to access minerals. The method is commonly used in coal reserves.
An expository speech by Katerina on strip mining will be an informative process speech on this process of mining minerals
Which of the following is not an example of a "lag" that diminishes the potential impact of the use of fiscal policy? a. the recessionary lag b. the data lag c. the legislative lag d. the transmission lag
Answer:
a. the recessionary lag
Explanation:
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
Lag in economics can be defined as a measure of the time it takes to recognize economic conditions and how they're being responded to by the government (policy makers).
For instance, measuring the time between when a fiscal policy is implemented and when the people feel its impact in the society.
The recessionary lag is not an example of a "lag" that diminishes the potential impact of the use of fiscal policy because after implementation, the next phase is for the people to feel the impact or effectiveness of the fiscal policy.
Examples of a "lag" that diminishes the potential impact of the use of fiscal policy are;
1. The data lag.
2. The legislative lag.
3. The transmission lag.
Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $3,600 debit. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title for the adjusting entry to record the bad debts Bad Debt Expense enter a debit amount enter a credit amount enter an account title for the adjusting entry to record the bad debts Allowance for Doubtful Accounts
Answer:
Find attached missing part:
Dr bad debt expense $ 22,050.00
Cr allowance for doubtful accounts $ 22,050.00
Explanation:
The estimated balance of uncollectible debts is the accounts receivable of $570,000 multiplied by 4.5% which is the rate of uncollectible debt given in the question.
Estimated balance of uncollectible debt=$570,000*4.5%=$ 25,650.00
The adjusting entries required to record bad debts as per the amount computed above is the estimated balance of uncollectible of $ 25,650.00 minus the debit balance of $3,600 already in the unadjusted balance in allowance for doubtful debts.
adjusting amount=$ 25,650.00-$3,600.00=$ 22,050.00
11. Which ones of the four examples below is an example of value-migration? a. No one buys typewriters anymore, but they buy PCs even to type. b. HP now produces laser printers that can accept emailed inputs as well. c. Honda used its expertise in small engines to enter the lawn-mower market d. Sony lost share in the video recorder market, but gained the camcorder market.
Answer:
a. No one buys typewriters anymore, but they buy PCs even to type.
Explanation:
Value migration can be described as the change in the value-creating forces due to the migration of value from products or business models that are outmoded to business designs that able to give better satisfaction to the priorities of customers.
Therefore, the correct option is "no one buys typewriters anymore, but they buy PCs even to type" because typewriters are outmoded while PCs are the new designs.
Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.
Sept. 6 Purchased calculators from Blossom Co. at a total cost of $1,750, terms n/30.
9 Paid freight of $50 on calculators purchased from Blossom Co.
10 Returned calculators to Blossom Co. for $58 credit because they did not meet specifications.
12 Sold calculators costing $510 for $700 to Fryer Book Store, terms n/30.
14 Granted credit of $35 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $25.
20 Sold calculators costing $680 for $880 to Heasley Card Shop, terms n/30.
SHOW ALL WORK LIKE A JOURNAL ENTRY SHOULD LOOK.
Answer:
See the journal and the explanation underneath each transaction below.
Explanation:
The journal entry will look as follows:
Date Details Dr ($) Cr ($)
Sept. 06 Merchandise Inventory 1,750
Accounts payable 1,750
To record purchase of calculators on account.
Sept. 09 Merchandise Inventory 50
Cash 50
To record Freight paid on purchase of Merchandise Inventory.
Sept. 10 Accounts payable 58
Merchandise Inventory 58
To record calculator returned Blossom Co.
Sept. 12 Accounts Receivable 700
Sales 700
To record sale of calculators on account.
Sept. 12 Cost of goods sold 510
Merchandise Inventory 510
To transfer cost of calculators sold.
Sept. 14 Sales return and discounts 35
Accounts receivable 35
To record return of calculator sold which was not ordered.
Sept. 14 Merchandise Inventory 25
Cost of goods sold 25
To record cost of goods sold that was returned.
Sept. 20 Accounts Receivable 880
Sales 880
To record calculators sold on account.
Sept. 20 Cost of goods sold 680
Merchandise Inventory 680
To record cost of goods sold.
Rick is planning to invest the following amounts at 7 percent: $254 at the end of year 1, $412 at the end of year 2, and $1,230 at the end of year 3. How much money will he have saved at the end of year 3
Answer:
$1,961.65
Explanation:
The formula for finding future value :
FV = P (1+r)^n
P = Present value
R = interest rate
N = number of years
First step is to find the present value of the cash flows.
PV can be found using a financial calculator
Cash flow in year 1 = $254
Cash flow in year 2 = $412
Cash flow in year 3 = $1,230
I = 7%
Present value = $1,601.29
I would now input the value of p in the FV formula
$1,601.29 ( 1 + 0.07) ^3 = $1,961.65
To find the PV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Indigo Company issues 11,300 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2020. The stock has a fair value of $565,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Tokar stays with the company until December 31, 2024. The par value of the stock is $10. At December 31, 2020, the fair value of the stock is $396,000.
Required:
a. Prepare the journal entries to record the restricted stock on January 1, 2014 (the date of grant), and December 31, 2015
b. On July 25, 2018, Tokar leaves the company. Prepare the journal entry to account for this forfeiture.
Answer:
a. Prepare the journal entries to record the restricted stock on January 1, 2014 (the date of grant), and December 31, 2015
January 1, 2014, restricted shares are issued (market price $50 per stock)
Dr Unearned compensation 565,000
Cr Common stock 113,000
Cr Additional paid in capital (stock options) 452,000
December 31, 2015, two years of vesting period have passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
b. On July 25, 2018, Tokar leaves the company. Prepare the journal entry to account for this forfeiture.
July 25, stock options are forfeited
Dr Unearned compensation 452,000
Cr Stock based compensation expense 452,000
Explanation:
total stock compensation 11,300
vesting period 5 years = 11,300 / 5 = 2,260 stocks
stock based compensation is recorded using the market price on the date of the grant (January 1, 2014) which = $565,000 / 11,300 = $50 per stock
nothing really happens to the company when the stock options are granted, because unearned compensation is a contra equity account that reduces any increase in equity resulting from the stock options.
January 1, 2014, restricted shares are issued (market price $50 per stock)
Dr Unearned compensation 565,000
Cr Common stock 113,000
Cr Additional paid in capital (stock options) 452,000
The company starts recording expenses as the vesting period is accrued.
December 31, 2014, one year of vesting period has passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
December 31, 2015, two years of vesting period have passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
December 31, 2016, three years of vesting period have passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
December 31, 2017, four years of vesting period have passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
Prepare journal entries to record the December transactions in the General. Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense.
1-Dec Began business by depositing $10500 in a bank account in the name of the company in exchange for 1050 shares of $10 per share common stock.
1-Dec Paid the rent for the current month, $950 .
1-Dec Paid the premium on a one-year insurance policy, $600 .
1-Dec Purchased Equipment for $3600 cash.
5-Dec Purchased office supplies from XYZ Company on account, $300 .
15-Dec Provided services to customers for $7200 cash.
16-Dec Provided service to customers ABC Inc. on account, $5200 .
21-Dec Received $2400 cash from ABC Inc., customer on account.
23-Dec Paid $170 to XYZ company for supplies purchased on account on December 5 .
28-Dec Paid wages for the period December 1 through December 28, $4480 .
30-Dec Declared and paid dividend to stockholders $200 .
Answer:
1-Dec
Cash $10500 (debit)
Common Stock $10500 (credit)
1-Dec
Rent Expense $950 (debit)
Cash $950 (credit)
1-Dec
Prepaid Insurance $600 (debit)
Cash $600 (credit)
1-Dec
Equipment $3600 (debit)
Cash $3600 (credit)
5-Dec
Supplies Expense $300 (debit)
Accounts Payable $300 (credit)
15-Dec
Cash $7200 (debit)
Service Revenue $7200 (credit)
16-Dec
Accounts Receivable $5200 (debit)
Service Revenue $5200 (credit)
21-Dec
Cash $2400 (debit)
Accounts Receivable $2400 (credit)
23-Dec
Accounts Payable $170 (debit)
Cash $170 (credit)
28-Dec
Wages Expense $4480 (debit)
Cash $4480 (credit)
30-Dec
Dividends $200 (debit)
Cash $200 (credit)
Explanation:
It is important to remember that Insurance paid in advance is an Asset hence, premium on a one-year insurance policy was recorded in Prepaid Insurance.
Chocolates R' Us, Inc is owned equally by Desi and his wife Lucy, each of whom hold 550 shares in the company. Lucy plans to reduce her ownership in the company, with the company planning to redeem 475 of her shares for $10,000 per share on December 31 of this year. Assume Desi and Lucy are not getting along and have separated due to marital discord, but are not legally separated. Because they no longer talk to each other, they communicate only through their accountant. Lucy wants to argue that she should not be treated as owning any of Desi's stock in Chocolates because of their hostility toward each other. Can family hostility be used as an argument to voice the family attribution rules?
Answer:
Chocolates R' Us, Inc.
Family hostility cannot be used as an argument to void the family attribution rules.
Lucy is still legally married to Desi. What the husband, Desi, therefore, owes, she owes equally despite their separation and her intention to reduce her ownership in their joint company.
Explanation:
Family Attribution Rules: Section 318 of the Internal Revenue Code says an individual shall be considered as owning the stock owned, directly or indirectly, by or for his spouse and his children, grandchildren, and parents, including legally adopted children.
Account A pays simple interest.
Future ValueA = Principal + Interest
= Principal + [(Principal x Interest Rate) x Investment Period]
= $2,000 + [($2,000 x 996) x 3 years]
Future Value of Account X Note: Account X pays compound interest.
Future Valuex = Present Value x Interest Rate Factor
= Present Valuex(1 +Interest Rate)n years
= $2,000 x (1 + 0.09)3
To find the interest rate factor, you can use three different ways, including multiplying it out:
Interest Factor(1 0.09) x (1 0.09) x (1 0.09)1.2950
Or using exponents and calculating it directly:
Interest Factor(10.09)31.2950
Or looking up the value in the Future Value Interest Factor Table:
Interest Factors
Periods 6% 7% 8% 9% 10 11
1 1.0600 1.0700 1.0800 1.0900 1.1000 1.1100
2 1.1236 1.1449 1.1664 1.1881 1.2100 1.2321
3 1.1910 1.2250 1.2597 1.2950 1.3310 1.3676
4 1.2625 1.3108 1.3605 1.4116 1.4641 1.5181
The fourth alternative for solving the equations is to let a financial calculator perform the calculation. This requires that you know how your calculator functions and how to enter the following variables:
P/ Y N I / YR PV FV
1 3 9 2,000
P/Y indicates the number of compounding periods per year, N is the number of years, I is the interest rate, PV is present value, and FV is future value.
Difference in Future Values
Difference = FVx_FVA
Answer:
Explanation:
Interest Factors
Periods 6% 7% 8% 9% 10% 11 %
1 1.0600 1.0700 1.0800 1.0900 1.1000 1.1100
2 1.1236 1.1449 1.1664 1.1881 1.2100 1.2321
3 1.1910 1.2250 1.2597 1.2950 1.3310 1.3676
4 1.2625 1.3108 1.3605 1.4116 1.4641 1.5181
1)
Future value paying simple interest = Principal + [( principal * interest) * investment period]
Future value paying simple interest = $2,000 + [ ( $2,000 * 9%) * 3]
Future value paying simple interest = $2,000 + 540
Future value paying simple interest = $2,540
2)
Future value paying compound interest = Present value * ( 1 + interest)n
Future value paying compound interest = $2,000 * ( 1 + 0.09)3
Future value paying compound interest = $2,000 * 1.295029
Future value paying compound interest = $2,590.058
3)
Difference = $2,590.058 - 2,540
Difference = $50.058
Suppose you want to invest $10,000. You have two options: Option #1: Invest in municipal bonds with an expected return of 8.00%, or Option #2: Invest in the corporate bonds of Jefferson & Alexander Inc. which are offering an expected return of 10.00% Assume that your decision is based solely on your tax situation. If everything else is the same for both bonds, at what tax rate would you be indifferent between these two bond investments?
Answer: 20%
Explanation:
Municipal Bonds are generally not taxed so if you invest in the Municipal bond, the tax rate does not affect you.
The tax rate therefore that will make you indifferent between the 2 options is the one that will take the Corporate bond returns of Jefferson to 8% so that both bonds may give you the same return after tax.
Assuming that tax rate is 'x' then,
8 = 10 (1 - x)
8 = 10 - 10x
10x = 10 - 8
10x = 2
x = 20%
At a tax rate of 20%, the Corporate bonds give an 8% return.
Suppose that Congress passes a law requiring employers to provide employees some benefit (such as healthcare) that raises the cost of an employee by $4 per hour. Assume that firms were not providing such benefits prior to the legislation. On the following graph, use the green line (triangle symbol) to show the effect this employer mandate has on the demand for labor.On the previous graph, use the purple line (diamond symbol) to show the effect this employer mandate has on the supply of labor. Suppose the wage is free to balance supply and demand. Use the black point (plus symbol) to indicate the equilibrium wage and level of employment before this law, and use the grey point (star symbol) to indicate the equilibrium wage and level of employment after this law is implemented.
True or False: Employers and employees are made worse off by this law.
True False Suppose that, before the mandate, the wage in this market was $3 above the minimum wage. In this case, the employer mandate will decrease the equilibrium wage rate from $10 per hour to $6 per hour, causing employment to increase V and unemployment to decrease 'V' . Now suppose that workers do not value the mandated benefit at all. Which of the following statements are true under this circumstance?
1. The wage rate will decline by less than $4.
2. Employers are worse off than before the mandated benefit.
3. The equilibrium quantity of labor will decline.
4. The supply curve of labor doesn't shift at all.
5. Employees are worse off than before the mandated benefit.
Answer:
a. False
b. 1. The wage rate will decline by less than $4.
2.Employers are worse off than before the mandated benefit.
3. The equilibrium quantity of labor will decline.
4. The supply curve of labor doesn't shift at all
5. Employees are worse off than before the mandated benefit.
Explanation:
The Equilibrium wage and employment level are at the point where demand and supply curves intersect. The new law will cause the demand and supply curve to shift down. Employers and employees are not made worse off rather they are well off as before.
When the workers will not value the benefit as mandated in the law the supply curve will not shift down, the equilibrium quantity of labor will decline and wage rate will decline by less than $4. Employers are worse off than before because a greater total wage will be paid by employers plus benefit for few workers. This will result in greater total cost to employer.
Assume that the public in the small country of Sylvania does not hold any cash. Commercial banks, however, hold 10 percent of their checking deposits as excess reserves, regardless of the interest rate. In the questions that follow, the "money multiplier" is given by 1 / (RR + ER ).
Where
RR = the percentage of deposits that banks are required to keep as reserves
ER = the percentage of deposits that banks voluntarily hold as excess reserves
Consider the balance sheet of one of several identical banks:
Assets Liabilities and Net Worth
Reserves 400 Checking Deposits 2,000
Loans 1,600 Net Worth 0
Total Assets 2,000 Liabilities and Net Worth 2,000
The required reserve ratio in this economy is _________%. (Enter your response as an integer.)
If the total money stock (supply) is $600,000, the total amount of reserves held in the banking system is_____ $
Answer and Explanation:
The computation is shown below:
(1) The required reserve ratio is
= Required reserves ÷ Checkable deposit
where,
Required reserves
= Total reserves - Excess reserves
= 400 - 2,000 × 10%
= $400 - $200
= $200
And, the checkable deposit is $2,000
So, the required reserve ratio is
= $200 ÷ $2,000
= 10%
(2) Now the total amount of reserves is
But before that first we have to determine the money multiplier is
Money multiplier (MM) = 1 ÷ (ER + RR)
= 1 ÷ (0.10 + 0.10)
= 1 ÷ 0.20
= 5
Now
Monetary base (MB) is
= Money stock ÷ Money multiplier
= $600,000 ÷ 5
= $120,000
And as we know that
Monetary base = Currency + Reserves, and Currency (i.e held by public) = 0
So,
Reserves = Monetary base = $120,000
A company's January 1, 2019 balance sheet reported total assets of $111,000 and total liabilities of $48,000. During January 2019, the following transactions occurred: (A) the company issued stock and collected cash totaling $21,000; (B) the company paid an account payable of $5,100; (C) the company purchased supplies for $2,900 with cash; (D) the company purchased land for $41,000, paying $18,000 with cash and signing a note payable for the balance. What is total stockholders' equity after the transactions above
Four of the ships sought a passage along a southern...……
1 coast
2 inland
3 border
4 body of land with water on three sides
5 non of the above
what is the answer
Dollar-value LIFO:
a. Starts with ending inventory measured at current costs and re-creates LIFO layers for measuring inventory costs.
b. Increases the recordkeeping costs of LIFO.
c. Only is allowed for internal reporting purposes.
d. None of these answer choices are correct.
Answer:
a. Starts with ending inventory measured at current costs and re-creates LIFO layers for measuring inventory costs.
Explanation:
Dollar-value LIFO refers a technique of accounting that employed for inventory based on the last-in-first-out model.
To obtain the dollar-value LIFO, the conversion price index that will be used to calculate the LIFO cost layer for each period must be calculated first.
Therefore, Dollar-value LIFO starts with ending inventory measured at current costs and re-creates LIFO layers for measuring inventory costs.
The Work-in-Process inventory account of a manufacturing firm shows a balance of $3,980 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $660 and $460 for materials, and charges of $560 and $740 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of:
Answer:
Predetermine overhead rate as a percentage of direct labor cost is 120%
Explanation:
To calculate the predetermined overhead rate, we first need to determine the total overheads under the balance of $3980 for two jobs.
The total cost of both jobs which are uncompleted equals,
Total cost both jobs = (660 + 560) + (460 + 740)
Total cost both jobs = 1220 + 1200 = $2420
Thus, the overhead cost involved in both jobs is,
Total Overhead cost = 3980 - 2420 = $1560
This total overhead of $1560 has been absorbed on the basis of a predetermine overhead rate based on the direct labor cost. The total direct labor cost involved under both uncompleted jobs is,
Total direct labor cost both jobs = 560 +740 = $1300
So, the predetermined overhead rate is,
Overhead rate = Total overheads / total direct labor cost
Overhead rate = 1560 / 1300
Overhead rate = $1.2 per $1 of direct labor cost
Expressed as a percentage of direct labor cost, it is:
% Overhead rate = 1560 / 1300 * 100 = 120% of direct labor cost
Charles is a stay-at-home parent who lives in New York City and teaches tennis lessons for extra cash. At a wage of $25 per hour, he is willing to teach 6 hours per week. At $35 per hour, he is willing to teach 16 hours per week. Using the midpoint method, the elasticity of Teresa’s labor supply between the wages of $25 and $35 per hour is approximately _________ , which means that Teresa’s supply of labor over this wage range is _________
Answer:
2.75, elastic.
Explanation:
Measure labor supply elasticity of Individual T's as follows :
[tex]\bf Elasticity=\frac{Percent \;change\;in\;labour\;hr}{\frac{Average\;labour\;hour}{\frac{Percent\;change\;in\;wage\;price}{Average\;wage\;price} } }[/tex]
[tex]\bf =\frac{16-6}{\frac{16+6}{\frac{2}{\frac{35-25}{\frac{35+25}{2} } } } }[/tex]
[tex]\bf=\frac{10}{\frac{11}{\frac{10}{30} } }[/tex]
[tex]\bf=\frac{0.91}{0.33}[/tex]
[tex]=2.75[/tex]
Therefore, the elasticity of the labour supply of Individual T's is approx. of earnings per hour. 2.75, meaning that the work supply of Person T's is elastic across this wage range
Why are z-scores useful?
A. They help us calculate average sales.
B. They assume a non-normal distribution
C. They let us compare variables with different scales
D. They allow us to calculate the percentage of profits
Answer:
[tex]\pi \: option \: a \: and \: c \: [/tex]
Explanation:
Hope it works out !!!
The trial balance of Rachel Company at the end of its fiscal year, August 31, 2017, includes these accounts: Inventory $29,200; Purchases $144,000; Sales Revenue $190,000; Freight-In $8,000; Sales Returns and Allowances $3,000; Freight-Out $1,000; and Purchases Returns and Allowances $5,000. The ending inventory is $25,000. Prepare a cost of goods sold section for the year ending August 31.
Answer:
$151,200
Explanation:
The cost of goods sold is the beginning inventory plus purchases plus freight-in, minus purchases returns and allowances minus ending inventory
Cost of goods sold extract of income statement:
Beginning inventory $29,200
Purchases $144,000
Freight-in $8,000
Purchases returns and allowances ($5,000)
Net purchases $147,000
cost of goods available for sale $176,200
ending inventory ($25,000)
cost of goods sold $151,200
The cost of goods sold is $151,200,which would be deducted from net sales in order to arrive at gross profit
Mary runs an ad in the paper offering a $5 reward for the return of her lost dog, Sparky. Mary has made a promise to pay the person who performs the act of returning Sparky. This is a(n) _____ contract. Select one: a. quasi b. implied c. bilateral d. unilateral
Answer:
This is a Unilateral contract
Explanation:
Mary has made a promise to pay the person who performs the act of returning Sparky therefore this is an example of a unilateral contract.
A unilateral contract is a type of contract agreement where an offeror such as Mary makes a promise to pay after the performance of a specified act, which is to return her dog Sparky
17
A property company received cash for property rentals totalling $738,400 during the
year to 31 December 2009. Figures for rent received in advance and rent in arrears at
the beginning and end of the year were as follows.
31 December 2008
31 December 2009
Rent received in advance
125,300
77,700
Rent in arrears
(all subsequently paid, no bad debts)
39,600
41,100
What amount should appear in the company's income statement for the year ended 31
December 2009 for rental income?
Answer:
$764,400
Explanation:
Payment in advanced are prepayment which are treated as current liability until the service is delivered and sales income are credited while the .prepayment account are debited.
Accrual payment are payment for service already delivered which are current liability (receivables)
Rental income received = $738,000
Rent in advance as at 31/12/2008 102,600
(prepayment for 2009)
Rent in advance as at 31/12/2009 (77,700)
Prepayment for 2010
Rent in arrears as at 31/12/2008 (39,600)
Accrued payment for 2008
Rent in arrears as at 31/12/2009 41,100
Recognized income 764,400
Sarbanes-Oxley Act requires each of the following: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Required information An internal control system consists of the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations, and uphold company policies. It can prevent avoidable losses and help managers both plan operations and monitor company and human performance. Principles of good internal control include establishing responsibilities, maintaining adequate records, insuring assets and bonding employees, separating recordkeeping from custody of assets, dividing responsibilities for related transactions, applying technological controls, and performing regular independent reviews. Knowledge Check 01 Sarbanes-Oxley Act requires each of the following: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark willl be automatically graded as incorrect.) An effective internal control ? Light penalties for violators Auditors must evaluate internal controls Auditor's work overseen by Public Accounting Board
Answer: An effective Internal Control
Auditors must evaluate internal controls
Auditor's work overseen by Public Accounting Board
Explanation:
The early part of the 21st century saw shocking financially improper activities by companies such as WorldCom and Enron exposed to the world. Investor Confidence was shaken and the government needed to do something to restore it.
This was why in 2002, the US Congress passed the Sarbanes-Oxley act that aimed to ensure that the actions of those companies were never repeated.
The act requires the following;
a) An effective Internal Control
The act requires that companies enact very effective Internal controls to detect financial irregularities and even went forward to make it the responsibility of the Top Executives to ensure that this is so.
b) Auditors must Evaluate Internal Controls.
Auditors had to change their auditing strategies that were deemed inefficient. They are now required to properly evaluate in-depth, the internal controls that a company adopts to be able to give an opinion on it and they do this based on the guidelines of the Public Accounting Board.
c) Auditor's work overseen by Public Accounting Board
The Public Company Accounting Oversight Board (PCAOB) was established by the Sarbanes-Oxley Act with it's main purpose being to monitor and oversee auditors as they audit companies so that they may protect the public from false financial information. They set rules and standards that Auditors must follow and these rules in turn have to be approved by the Securities and Exchanges Commission (SEC).
To ensure that the deeds of those corporations were never repeated, the US Congress created the Sarbanes-Oxley act in 2002:
An effective Internal Control.Auditors must evaluate internal controls.Auditor's work overseen by Public Accounting Board.US Congress passed the Sarbanes-Oxley act, all financial reports must contain an Internal Controls Report demonstrating that the company's financial data is accurate and that sufficient controls are in place to protect it.
A yearly evaluation of internal controls by a third-party CPA firm to see how successful each one is. The auditor of a publicly traded firm must vouch for management's evaluation of internal controls and provide a report on it.
As a result, the significance of the Sarbanes-Oxley Act requires are the aforementioned.
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Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows:
Old Machine
Cost of machine, 10-year life $89,000
Annual depreciation (straight-line) 8,900
Annual manufacturing costs, excluding depreciation 23,600
Annual non-manufacturing operating expenses 6,100
Annual revenue 74,200
Current estimated selling price of machine 29,700
New Machine
Purchase price of machine, six-year life $119,700
Annual depreciation (straight-line) 19,950
Estimated annual manufacturing costs,
excluding depreciation 6,900
Annual non-manufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine.
Required:
1. Prepare a differential analysis as of April 30 comparing operations using the present machine (Alternative 1) with operations using the new machine (Alternative 2). The analysis should indicate the total differential income that would result over the six-year period if the new machine is acquired. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
Differential Analysis
Continue with Old Machine (Alternative 1) or Replace Old Machine (Alternative 2)
April 30
1 Continue with Old Machine Replace Old Machine Differential Effect on Income
2 (Alternative 1) (Alternative 2) (Alternative 2)
3
4
5
6
7
8
2. Choices of what other factors should be considered.
Was the purchase price of the old machine too high?
What effect does the federal income tax have on the decision?
What opportunities are available for the use of the $90,000 of funds ($119,700 less $29,700 proceeds from the old machine) that are required to purchase the new machine?
Should management have purchased a different model of the old machine?
Are there any improvements in the quality of work turned out by the new machine?
Answer:
old machine:
depreciation costs $8,900
other manufacturing costs $23,600
other non-manufacturing expenses $6,100
annual revenue $74,000
new machine:
purchase price $119,700 - 29,700 (sales price of old machine) = $90,000
depreciation costs $19,950
other manufacturing costs $6,900
other non-manufacturing expenses $6,100
annual revenue $74,000
1)
DIFFERENTIAL ANALYSIS
Alternative 1 Alternative 2 Differential
old machine new machine amount
Purchase cost $0 ($119,700) ($119,700)
Proceeds from sale $0 $29,700 $29,700
Total revenues $444,000 $444,000 $0
Manufacturing costs ($141,600) ($41,400) $100,200
(excluding dep.)
Other non- ($36,600) ($36,600) $0
manufacturing costs
Total $265,800 $276,000 $10,200
If the company purchases the new machine, its differential revenue will be higher considering the 6 years of useful life. But we are missing two important aspects: required rate of return and tax rate, which could affect our decision.
2) Choices of what other factors should be considered.
What effect does the federal income tax have on the decision?
Net cash flows are affected by deprecation expense and how they are taxed. Alternative 2 would benefit from higher tax rates.What opportunities are available for the use of the $90,000 of funds ($119,700 less $29,700 proceeds from the old machine) that are required to purchase the new machine?
We should discount the future cash flows using the company's WACC.Are there any improvements in the quality of work turned out by the new machine?
If the new machine improves the quality of our products or reduces production time, then that is something that should be considered.For every dollar that you deposit into a bank, the bank will tend to:_________.
a) keep a portion of it and lend out the rest.
b) keep every penny as vault cash since it is such a small amount.
c) lend out every penny since almost all transactions are digital.
Answer:
The answer is A.
Explanation:
This system is known as Fractional Reserve Banking.
Fractional Reserve Banking is a banking system which allow banks to hold a fraction their customers' deposit as reserves. The rest not kept as reserves are used to make loans, thereby creating new money.
Central banks announce reserve requirements which banks within the jurisdiction must comply with.
Consider the following cost function. a. Find the average cost and marginal cost functions. b. Determine the average and marginal cost when xequalsa. c. Interpret the values obtained in part (b)
Answer:
a) Average Cost function = 0.1 + (1000/x)
Marginal Cost function = 0.1
b) At x = a = 2000
Average Cost = 0.6
Marginal Cost = 0.1
c) The average cost calculate at x = 2000 in (b) represents the average cost of producing the first 2000 units of product and the marginal cost calculated at x = 2000 in (b) represents the cost of producing the 2001th unit of product.
Explanation:
The complete question
Consider the following cost functions.
a. Find the average cost and marginal cost functions.
b. Determine the average and marginal cost when x=a.
c. Interpret the values obtained in part (b).
C(x)=1000+0.1x, 0≤x≤5000, a=2000
Solution
a) The average cost is given as the total cost divided by the quantity produced.
A(x) = C(x) ÷ x
C(x) = 1000 + 0.1x
A(x) = (1000 + 0.1x) ÷ x = (1000/x) + 0.1
A(x) = 0.1 + (1000/x)
The marginal cost is given as the first derivative of the cost function with respect to the quantity of products produced.
M(x) = (dC/dx)
C(x) = 1000 + 0.1x
M(x) = (d/dx) (1000 + 0.1x) = 0.1
b) To calculate these values at x = a = 2000
Average cost at x = 2000
A(x) = 0.1 + (1000/x) = 0.1 + (1000/2000) = 0.1 + 0.5 = 0.6
Marginal Cost at x = 2000
M(x) = 0.1
c) The average cost is the cost per unit of producing a particular quantity of product.
The marginal cost is the cost of producing an extra unit of product.
Hence, the average cost calculate at x = 2000 in (b) represents the average cost of producing the first 2000 units of product and the marginal cost calculated at x = 2000 in (b) represents the cost of producing the 2001th unit of product.
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A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.4%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 14% 34% Bond fund (B) 5% 28% The correlation between the fund returns is 0.0214. What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds
Answer:
Explanation:
Expected Return stock fund ([tex]E_{rs[/tex]) = 14% = 0.14, Expected Return bond fund ([tex]E_{rb[/tex]) = 5% = 0.05, Standard Deviation stock fund ([tex]\sigma_s[/tex]) = 34% = 0.34, Standard Deviation bond fund ([tex]\sigma_b[/tex]) = 28% = 0.28, correlation (ρ) between the fund returns is 0.0214
The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously is referred to as need for organizations to improve the state of people, the planet, and profit simultaneously is referred to as
Answer:
The correct answer is: Corporate Social Responsibility (CSR).
Explanation:
To begin with, the concept known as ''Corporate Social Responsibility'' refers to a type of position adopted by the organization in order to achieve certain goals that are related to the subjects of the state of people, the health of the planet and its environment and take all that and combine it with the typically normal profit goal of every business so in that way the members of the organization can act with the purpose of achievieng all those.
Price serves as a a. rationing device. b. transmitter of information. c. means of determining who gets what of the available limited resources and goods. d. a and b e. all of the above
Answer:
e. all of the above
Explanation:
Price are an mechanism that serve to coordinate economic activity. They help coordinate economic decisions such as rationing, they transmit information, and they also help economic agents make decisions about what to sell, what to buy, what to exchange, and so on.
