Answer:
The multiple choices are as follows:
$4,720.
$17,260.
$48,680.
$43,960.
$42,960.
The beginning cash balance was $4,720
Explanation:
The formula for closing cash balance can be used to determine the opening cash balance as shown thus:
closing cash balance=net increase in cash+opening balance of cash
by arranging the equation
opening cash balance =closing cash balance-net increase in cash
closing cash balance is $26,700
net increase in cash is $21,980
opening cash balance=$26,700-$21,980=$4,720
Santa Klaus Toys just paid a dividend of $3.00 per share. The required return is 11.7 percent and the perpetual dividend growth rate is 3.9 percent. What price should this stock sell for five years from today?
Answer:
P5=48.3860
Explanation:
Santa Klaus Toys
The Price of the stock 5 years from today will be :
P5=D6/(r-g)=
D0*(1+g)^6/(r-g)
Where
D0 =3
g =3.9%
r=11.7%
Hence:
P5=3*(1+3.9%)^6/(11.7%-3.9%)
P5=3*(1+0.039)^6/(0.117-0.039)
P5=3*(1.039)^6/(0.078)
P5=3.77410/0.078
P5=48.3860
An investment project provides cash inflows of $745 per year for eight years. What is the project payback period if the initial cost is $1,700? What if the initial cost is $3,300? What if it is $6,100? Ross, Stephen,Ross, Stephen. Fundamentals of Corporate Finance (Kindle Locations 14578-14580). McGraw-Hill Higher Education. Kindle Edition.
Answer:
2.28 years
4.43 years
8.19 years
Explanation:
Payback period is the time period in which initial investment of a project is recovered.
Initial cost = $1,700
Pay back period = Initial Investment / Yearly cash inflow
Pay back period = $1,700 / $745 = 2.28 years
Initial cost = $3,300
Pay back period = Initial Investment / Yearly cash inflow
Pay back period = $3,300 / $745 = 4.43 years
Initial cost = $6,100
Pay back period = Initial Investment / Yearly cash inflow
Pay back period = $6,100 / $745 = 8.19 years
Grays Company has inventory of 16 units at a cost of $11 each on August 1. On August 3, it purchased 26 units at $10 each. 18 units are sold on August 6. Using the perpetual FIFO inventory method, what amount will be reported as cost of goods sold for the 18 units that were sold
Answer:
Cost of goods sold is $196
Explanation:
Using FIFO inventory sold are valued at the price of the most earliest stock in inventory.
The 16 units would be valued at $11 per one while the remaining 2 units would be valued at price of the purchase made on August 3 which cost $10 each
costs of goods sold=($11*16)+($10*2)
=$176+$20=$196
The costs of goods sold would be $196 if FIFO method of inventory valuation is used
A zero coupon bond with a face value of $1,000 is issued with an initial price of $415.50. The bond matures in 10 years. What is the implicit interest, in dollars, for the first year of the bond's life
Answer:
$38.14
Explanation:
The yield to maturity on the bond can be computed using the rate formula in excel as shown below:
=rate(nper,pmt,-pv,fv)
nper is the bond life measured in years which is 10
pmt is the annual coupon payment since the bond zero coupon ,pmt is $0
pv is current price of the bond which is $415.50
fv is the face value of the bond i.e $1000
=rate(10,0,-415.50,1000)=9.18%
implicit interest in dollars for first year=cash proceeds*yield to maturity
cash proceeds which is the same as price of bond is $415.50
implicit interest in dollars=$415.50*9.8%=$38.14
Operating expenses other than depreciation for the year were $300,000. Accrued expenses decreased by $30,000 during the year. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be
Answer: $330,000
Explanation:
Using the Direct Cashflow statement the expenses minus the Depreciation is added to a reduction in the Accrued Expenses to give the amount paid.
Therefore,
= 300,000 + 30,000
= $330,000
The rationale behind this is that Operating Expenses are paid for by cash and so reduce the cash balance. Depreciation on the other hand, even though it is recognised as an expense, it is not a cash expense because the company doesn't give cash to the equipment being depreciated, the depreciation is just recorded and it does not reduce the cash balance. Operating Expenses like electricity reduce the cash balance because they are paid for.
Accrued Expenses are a liability and when a liability decreases that means that the company has used some cash to pay it off. This is a cash payment which falls under Operating Expenses because they were expenses owed and now they have been paid for.
According to the Florida bureau of economic research, the mean rent price for condo in Florida is $ 700, We want to test this hypothesis:_______
a) A random sample of 50 condos rented was taken.
b) The mean was $ 800.
c) The assumption here is that the standard deviation of the population is known and is $ 400.
d) Alpha
Answer:
The answer is a.
Explanation:
I can safely say that in order to have an exact value of an average of $ 700, it is because an initial survey had to be made of people in 50 condominiums that allowed finding several sample means and finally finding the total sample mean, this data allows determining an exact average of reliable values supplied by respondents in the sample.
Suppose that Ava withdraws $300 from her savings account at Second Bank. The reserve requirement facing Second Bank is 10%. Assume the bank does not wish to hold any excess reserves of new deposits. Use this information to complete the balance sheet below to show how Second Bank's assets and liabilities change when Ava withdraws the $300 from the bank.Instructions: include a negative sign if necessary.
Assets Liabilities
Change in Reserves: $_____________ Change in Deposits: $_______________
Change in Loans: $_______________
Answer:
Change in Reserves: –$30
Change in Deposits: –$300
Change in Loans: –$270
Explanation:
The calculation of each element of the balance sheet is as follows:
Change in Reserves = Amount withdrawn by Ava * Reserve requirement faced by Second Bank = $300 * 10% = $30. This is a reduction and will be negative in the Second Bank's Balance Sheet.
Change in Deposits = Amount withdrawn by Ava = $300. This is a reduction and will be negative in the Second Bank's Balance Sheet.
Change in loan = Amount withdrawn by Ava - Change in Reserves = $300 - $30 = $270. This is a reduction and will be negative in the Second Bank's Balance Sheet.
Change in Reserves: –$30 .
Change in Deposits: –$300
Change in Loans: –$270
Calculation of change in reserves, deposits and loans:Since
Change in Reserves = Amount withdrawn by Ava * Reserve requirement faced by Second Bank
= $300 * 10%
= $30.
This represent a reduction and will be negative on the Second Bank's Balance Sheet.
Now
Change in Deposits = Amount withdrawn by Ava
= $300.
This is a reduction and will be negative on the Second Bank's Balance Sheet.
And,
Change in loan = Amount withdrawn by Ava - Change in Reserves
= $300 - $30 = $270.
This is a reduction and will be negative in the Second Bank's Balance Sheet.
learn more about liabilities here: https://brainly.com/question/23828880
Using the following information:
a. The bank statement balance is $4,709.
b. The cash account balance is $5,162.
c. Outstanding checks amounted to $624.
d. Deposits in transit are $1,035.
e. The bank service charge is $33.
f. A check for $60 for supplies was recorded as $51 in the ledger.
Required:
Prepare bank reconciliation for Miller Co. for August 31.
Answer and Explanation:
The preparation of the bank reconciliation statement for August 31 is presented below:
Miller Co.
Bank reconciliation statement
August 31
Particulars Amount Particulars Amount
Bank cash balance $4,709 Company cash balance $5,162
Add: Less:
Deposits in transit $1,035 Bank service charges -$33
Less: Outstanding Error in recording -$9
Check -$624
Bank balance Company balance
After reconciliation $5,120 After reconciliation $5,120
6. On 3/1/19, Kepple Inc. borrowed funds on a 12%, two-year note, to finance the construction of a new warehouse which qualifies for interest capitalization. Construction on the project began on 4/1/19 and was completed on 11/1/19. Kepple has a calendar year-end. Rounded to the nearest whole month, over how many total months in 2019 should interest be capitalized under the current interest capitalization rules?
Answer:
The interest would be capitalized for 7 months time and must be calculated at 12% of the actual amount used for the construction of the new warehouse.
Explanation:
The interest can only be capitalized for the period the loan amount was used to make the asset ready for use. Also note that the part of loan amount used will only be used to calculate the interest which would be capitalized which means if the company borrowed $1.2 million at 12% and used only $0.6 million of the total loan for construction of the building then the amount used will be $0.6 to compute the interest that will be capitalized.
The time period will be the corresponding time of commencement of construction and amount borrowed to the date the construction of the asset has been completed. So here, the time period for which the interest would be capitalized would be for 7 months (4/1/19 - 11/1/19) because the construction was completed within 7 months.
Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2019. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $42,000 and an estimated useful life of 5 years. Assume half-year convention for tax. Assume half-year convention for tax.
Required:
a. Calculate the amount of depreciation for 2017 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life.
b. Calculate the amount of depreciation for 2017 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense
c.Calculate the amount of depreciation for 2017, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables
d. Assume no income limit on the expense election. Calculate the amount of depreciation for 2017 including bonus depreciation and the election to expense that Mike can deduct
Answer:
a. Calculate the amount of depreciation for 2017 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life.
depreciation expense per year = $42,000 / 5 = $8,400
depreciation expense for 2017 = $8,400 x 9/12 = $6,300
b. Calculate the amount of depreciation for 2017 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense
using MACRS table, depreciation expense = $42,000 x (20%/2 due to half year) = $4,200
c. Calculate the amount of depreciation for 2017, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables
= ($42,000 / 2) + $4,200 = $21,000 + $4,200 = $25,200
d. Assume no income limit on the expense election. Calculate the amount of depreciation for 2017 including bonus depreciation and the election to expense that Mike can deduct
$42,000
Assume that a parent company acquired 100% of a subsidiary on 1/1/X1. The purchase price was $175,000 in excess of the subsidiary’s book value of net assets on acquisition date and the excess was assigned entirely to an unrecorded patent. The life of the patent is 10 years. Assume the subsidiary sells inventory to the parent. The parent ultimately sells the inventory to outside customers. The following relates to the years X2 and X3:
Inventory Sales GP of unsold inventory Receivable (Payable) $103,300 $29,441 $41,320 $87,900 $19,137 $27,986
Please complete the following using the spreadsheet below:
Prepare the consolidated financial statements at 12/31/X3 by placing the appropriate entries in their respective debit/credit column cells.
Answer:
A spreadsheet was prepared for the consolidated financial statement for a parent company.
Below is the attached file and solution for the work spreadsheet for consolidation entries.
Explanation:
Solution
Given that:
The following information for X2 and X3 is given below:
Sales (Inventory) The GP of inventory (Unsold) Receivable (Payable)
X2 $87,900 $19,137 $27,986
X3 $103,300 $29,441 $41,320
Now,
Note: Kindly find an attached copy of he spreadsheet below for the consolidated financial statement at 12/31/X3
Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $100,000 and 2,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $102,000 and actual direct labor-hours were 2,400. The predetermined overhead rate was:
Answer:
$40
Explanation:
The formula and the computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = Estimated overhead ÷ Estimated direct labor hours
= $100,000 ÷ 2,500 direct labor hours
= $40
By dividing the estimated overhead from the estimated direct labor hours we can get the predetermined overhead rate and the same is to be considered
It recognized only estimated values and activity drivers
Suppose demand for U.S. products across the world increases. What is the impact on the flow of financial capital as a result of the increase in demand for products, the value of the U.S. dollar, and the foreign money price of the U.S. dollar? Financial capital flow / Value of the U.S. dollar / Price of the U.S. dollar No Change / Appreciate / Increase Inflow / Depreciate / Decrease Inflow / Appreciate / Increase Outflow / Depreciate / Increase Outflow / Appreciate / Decrease
Answer:
Impact on the flow of financial capital:
Financial capital flow / Value of the U.S. dollar / Price of the U.S. dollar:
No Change / Appreciate / Increase
Financial capital flow will not change. Financial capital flow does not refer to the flows for purchase of goods and services, but only for investments.
The value of U.S. dollar will appreciate relative to the increased demand.
The price of the U.S. dollar will increase, given the law of supply and demand.
Explanation:
a) Financial Capital Flow refers to the movement of investment capital, in and out of countries. When money for investment goes from one country to another, it is a capital flow, in-flow for the country receiving and out-flow for the country investing. The term does not include money people and businesses use to purchase each others' goods and services. There is why, in this scenario, there is no recorded change in financial capital flow in the U.S.
b) The value of the U.S. dollar is the total amount of U.S. dollar which a foreign currency can purchase at a particular exchange rate. It is based on the exchange rate, otherwise called the price of the U.S. dollar to another currency.
c) Price of the U.S. dollar is the exchange rate. It shows the value of one U.S. dollar vis-a-vis a foreign currency.
In each dropdown that follows, select the correct sign [less than ( <), greater than (> ), or equal (=)] for each comparison, assuming periods of rising prices. 1. FIFO inventory LIFO inventory 2. FIFO cost of goods sold LIFO cost of goods sold 3. FIFO net income LIFO net income 4. FIFO income taxes LIFO income taxes b. Why would management prefer to use LIFO over FIFO in periods of rising prices? Income shown on the company’s tax return would be lower if LIFO rather than FIFO is used. Income shown on the company’s tax return would be higher if LIFO rather than FIFO is used. Cost of goods sold shown on the company’s income statement would be lower if LIFO rather than FIFO is used. Dividends shown on the company’s financial statements would be higher if LIFO rather than FIFO is used.
Answer:
1. FIFO inventory is greater than (>) LIFO inventory.
2. FIFO cost of goods sold is less than (<) LIFO cost of goods sold.
3. FIFO net income is greater than (>) LIFO net income.
4. FIFO income taxes are greater than (>) LIFO income taxes.
b. Income shown on the company’s tax return would be lower if LIFO rather than FIFO is used.
Explanation:
FIFO and LIFO are accounting methods used in managing costs related to inventory, stock repurchases at different times and financial activities associated with monetary costs a company had tied up within inventory of feedstocks, raw materials, produced goods, and equipment parts.
Simply stated, FIFO and LIFO are accounting methods is used for the valuation of the cost of goods sold and ending inventory of a company.
FIFO is an acronym for "First In, First Out" and it assumes oldest unit of inventory is sold first, meaning goods that were first added to inventory are the first goods removed from inventory for sale and are recorded as sold first.
LIFO is an acronym for "Last In, First Out" and it assumes last unit to arrive in inventory is sold first, meaning goods that were last added to inventory are the first goods removed from inventory for sale and are recorded as sold first.
Juanita makes $16 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. opportunity costs of Time price of a dress total cost (Dollars) (Dollars per dress) (Dollars)Local Department Store 103Across Town 89Neighboring City 63Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress if she buys it from the _________ .
Answer:
She buys it from the "Neighboring city". The further explanation is given below.
Explanation:
The cost of opportunity while shopping from Local dept. store:
= [tex](15\times 2+30)\times 16[/tex]
= [tex](30+30)\times 16[/tex]
= [tex]1 \ hour\times 16[/tex]
= [tex]16[/tex]
The cost of opportunity while shopping from across town:
= [tex](30\times 2+30)\times 16[/tex]
= [tex](60+30)\times 16[/tex]
= [tex]1.5 \ hours\times 16[/tex]
= [tex]24[/tex]
The cost of opportunity while shopping from neighboring class:
= [tex](60\times 2+30)\times 16[/tex]
= [tex](120+30)\times 16[/tex]
= [tex]2.5 \ hours\times 16[/tex]
= [tex]40[/tex]
Now,
Store Opp. Cost Price Total cost
Local dept. store 16 103 119
Across town 24 89 109
Neigh. city 40 63 103
Therefore, a Neighboring city would be the right answer.
On January 1, 2018, Westside Sales issued $ 20 comma 000 in bonds for $ 21 comma 800. These are eightminusyear bonds with a stated interest rate of 10% that pay semiannual interest. Westside Sales uses the straightminusline method to amortize the bond premium. After the first interest payment on June 30, 2018, what is the bond carrying amount? (Round your intermediate answers to the nearest dollar.)
Answer:
$21,687.5
Explanation:
Premium on bonds payable = $21,800 - $20,000 = $1,800
Interest payments = 8 years X 2 semiannual interest payments per year = 16 payments
Premium ammortisation = $1,800 / 16 = $112.5
Carrying value of the bond = $21,800 - $112.5 = $21,687.5
Kathleen Reilly and Ann Wolf decide to form a partnership on August 1. Reilly invested land valued at $100,000, a Building valued at $300,000 and a note payable worth $198,000. Wolf invested $60,000 in cash and $105,000 in equipment in the new partnership. Prepare the journal entries to record the two partners' original investments in the new partnership
Answer:
Explanation:
Given that:
Kathleen Reilly and Ann Wolf decide to form a partnership on August 1
NOW:
Reilly invested land valued at $100,000, a Building valued at $300,000 and a note payable worth $198,000.
Similarly:
Wolf invested $60,000 in cash and $105,000 in equipment in the new partnership.
The objective of this question is to prepare the journal entries to record the two partners original investments in the new partnership.
.Since the partners agreed to be equally capital interest in their business.
SO let's an imaginary table for that and our data for the journal entries is being computed as follows:
DATE GENERAL JOURNAL DEBIT CREDIT
August 1 Land $100,000
Building $300,000
Note payable $198,000
Kathleen Reilly, Capital $202,000
August 1 Cash $60,000
Equipment $105,000
Ann Wolf, Capital $165,000
While hyperinflations are always caused by rapid growth in the money supply, they can be intensified by the actions of households and firms trying to protect themselves from inflation by spending money as soon as they receive it.
a. During a hyperinflation, the velocity of money is likely to:______
b. Use the quantity equation to show how the change in velocity affects the inflation rate
c. Holding the growth rate of real GDP constant, this change in velocity must _________ inflation
Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called LittleLaser, appears to have a very large potential market. Because of competition, Eckert does not believe that it can charge more than $84 for LittleLaser. At this price, Eckert believes it can sell 119,000 of these laser guns. Eckert will require an investment of $14,875,000 to manufacture, and the company wants an ROI of 16%. Determine the target cost for one LittleLaser.
Answer:
Target cost per unit = $64
Explanation:
Target cost is the cost at which a product must be produced and sold to achieve a desired profit margin
Target cost =(Sales revenue - (ROI × capital) )/ No of units
Target cost =( (84 × 119,000) - (16%× $14,875,000 ) )/ 119,000 guns
Target cost per unit = (9996000 - 2380000) / 119,000 units= $ 64 per unit
Target cost per unit = $64
Nash Corporation had income from continuing operations of $10,813,600 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $206,600. Prior to disposal, the division operated at a loss of $316,100 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Nash had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Nash beginning with income from continuing operations. (Round earnings per share to 2 decimal places, e.g. 1.48.)
Answer and Explanation:
The presentation of the partial income statement is presented below:
Nash Corporation
Partial income statement
Income from continuing operations $10,813,600
Discontinued operations
Loss from operations of a division $316,100
Loss from disposal of the division $206,600 ($522,700)
Net income $10,290,900
Earning per share
Income from continuing operations
($10,813,600 ÷ 10,000,000 shares) $1.08
Less Discontinued operations
($522,700 ÷ 10,000,000 shares) -$0.05
Net income
($10,290,900 ÷ 10,000,000 shares) $1.03
We simply deduct the losses from the income so that the net income could arrive
Beta Corporation had net income of $325,000 and paid dividends to common stockholders of $39,000 in 2017. The weighted average number of shares outstanding in 2017 was 50,000 shares. Beta Corporation's common stock is selling for $52 per share on the New York Stock Exchange. Beta Corporation's price-earnings ratio is
Answer:
The price earnings ratio for Beta corporation is 8 times
Explanation:
The formula for price-earnings ratio is the stock market price divided by the stock earnings per share.
The stock market price has been given as $52 per share
the earnings per share=net income-preferred dividends/weighted average number of shares
net income is $325,000
preferred dividends is $0
weighted average number of shares is 50,000
earnings per share=($325,000-$0)/50,000=$6.5
price earnings ratio=$52/$6.5= 8 times
The following purchase transactions occurred during August for Backcountry Kayak Excursions. Aug 1 Purchased Kevlar kayaks (equipment) for $471 on account from Gear Inc. Aug 6 Purchased kayak paddles (supplies) for $701 on account from Southland Co. Aug 14 Purchased life vests (supplies) for $3,588 on account from Gear Inc. Record these transactions in a purchases journal. If no entry is required, select "no entry" from the dropdown box. If an amount box does not require an entry, leave it blank.Purchases Journal Page 1Date Account Post Ref Accounts Supplies Other Accounts Post. Amount Credited Payable Dr. Dr. Ref Cr. Aug 1 6 14
Answer:
Backcountry Kayak Excursions - Purchases Journal
Supplier's Payment Accounts
Date account Item terms payable Inventory
Aug 1 Gear Inc. Equipment* On account $471 $471
Aug 6 Southland Supplies* On account $701 $701
Aug 14 Gear Inc. Supplies* On account $3,558 $3,558
Total $4,730 $4,730
Because there is not enough room here, i just recorded the purchases as either equipment or supplies, but you can also record them in a more detailed manner.
Equipment: Kevlar kayaksSupplies: paddlesSupplies: life vestsThe payment terms are either on account or cash purchases. If the purchases are made on cash, they will not increase accounts payable.
Since this is a retailer, the items purchased are allocated to inventory, but in other cases they could be allocated to different departments, e.g. sales, manufacturing, etc.
"analytic solver" ADC also is concerned about cash flow in years 2, 3, 4, and 5. Use Analytic Solver to estimate the distribution of the minimum annual operating profit (undiscounted) earned in any of the four years. What is the mean value of the minimum annual operating profit over the four years
Answer:
is there an image that shows the amount of $
Explanation:
can't solve without knowing the amount sorry
Tate Company purchased equipment on November 1, 2020 and gave a 3-month, 9% note with a face value of $120,000. Tate’s year-end is December 31st. The December 31, 2020 adjusting entry is Group of answer choices debit Interest Expense and credit Cash, $7,200 debit Interest Expense and credit Interest Payable, $1,800 debit Interest Expense and credit Interest Payable, $1,200 debit Interest Expense and credit Interest Payable, $10,800
Answer: Debit Interest Expense and credit Interest Payable, $1,800
Explanation:
The amount of time that has elapsed between the 1st of November and the 31st of December is 2 months.
This means that the interest over the last 2 months has to be calculated and recorded on the 31st of December.
Bear in mind that the 9% is an annual interest rate figure and so when calculating the interest, you must adjust for the amount of months in the year.
Interest owed for 2 months is,
= 9% * 2/12 (2 months have elapses out of 12 months in the year) * $120,000
= $1,800
Interest owed is $1,800.
The correct entry will therefore be,
Dec 31
DR Interest Expense $1,800
CR Interest Payable $1,800
( To record interest payable on note)
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $312,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $800,000 at January 1, 2017. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2017. No goodwill resulted from Belden's share purchase. Sheffield reported net income of $180,000 in 2017 and $230,000 of net income during 2018. Dividends of $70,000 and $80,000 are declared and paid in 2017 and 2018, respectively. Belden uses the equity method. On its 2018 comparative income statements, how much income would Belden report for 2017 and 2018 in connection with the company's investment in Sheffield
Answer:
how much income would Belden report for 2017 and 2018 in connection with the company's investment in Sheffield
2017: $54,000
2018: $69,000
total $123,000
Explanation:
the journal entries used to record the investment in Sheffield Inc. are:
January 1, 2017
Dr Investment in Sheffield Inc. 312,000
Cr Cash 312,000
the adjustments entries necessary for 2017 are:
December 31, 2017, dividends are distributed
Dr Cash 21,000 (= $70,000 x 30%)
Cr Investment in Sheffield Inc. 21,000
December 31, 2017, net income is reported
Dr Investment in Sheffield Inc. 54,000 (= $180,000 x 30%)
Cr Revenue from investment in Sheffield Inc. 54,000
the adjustments entries necessary for 2018 are:
December 31, 2018, dividends are distributed
Dr Cash 24,000 (= $80,000 x 30%)
Cr Investment in Sheffield Inc. 24,000
December 31, 2018, net income is reported
Dr Investment in Sheffield Inc. 69,000 (= $230,000 x 30%)
Cr Revenue from investment in Sheffield Inc. 69,000
Audreys free-throw percentage so far this season is .875. If she makes only 13 of her next 20 free throws, her percentage will drop to .860. How many free throws has Audrey made this season?
Answer:
245 free throws
Explanation:
x will be number of times Audreys makes a shot, and let y be total number of the shots.
x/y = .875
(x+13)/(y+20) = .860
Let solve for x in equation 1
x = .875y
We will plug the for x in the equation 2
(.875y+13)/(y+20)
= .860
.875y + 13
= .860y + 17.2
.015y = 4.2
y = 280
Audreys has taken 280 shots.
We will Plug that back into the equation 1 in order to find out how many Audreys made.
x/280 = .875
x = 245
Hence :
Audreys made 245 free throws
What is the principle of supply and demand?
Answer:
erm
Explanation:
The more supply, the less demand. The less supply, the more demand.
Answer:
This is a theory that says interaction between sellers of a resource and the buyers of that resource.
Hill Industries had sales in 2019 of $7,600,000 and gross profit of $1,199,000. Management is considering two alternative budget plans to increase its gross profit in 2020. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2019 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 107,000 units. At the end of 2019, Hill has 48,000 units of inventory on hand. If Plan A is accepted, the 2020 ending inventory should be equal to 5% of the 2020 sales. If Plan B is accepted, the ending inventory should be equal to 64,000 units. Each unit produced will cost $1.80 in direct labor, $1.40 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2020 should be $1,767,480.
Prepare a sales budget for 2020 under each plan.
Answer:
Plan A:
Sales in units= 855,000
Sales revenue= $7,182,000
Plan B:
Sales in units= 1,057,000
Sales revenue= $7,927,500
Explanation:
Giving the following information:
Hill Industries had sales in 2019 of $7,600,000
Plan A:
Selling price= $8.4
Sales= 10% lower
Plan B:
Selling price= $7.5
Sales= 107,000 units higher
First, we need to determine the number of units sold in 2019:
Units sold= 7,600,000/8= 950,000 units
Plan A:
Sales in units= 950,000*0.9= 855,000
Sales revenue= 855,000*8.4= $7,182,000
Plan B:
Sales in units= 950,000 + 107,000= 1,057,000
Sales revenue= 1,057,000*7.5= $7,927,500
On January 1, 2020, Oriole Company had Accounts Receivable $137,400, Notes Receivable $24,000, and Allowance for Doubtful Accounts $12,200. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2019. Oriole Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred.
Jan. 5 Sold $20,000 of merchandise to Sheldon Company, terms n/15.
20 Accepted Sheldon Company’s $20,000, 3-month, 8% note for balance due.
Feb. 18 Sold $9,000 of merchandise to Patwary Company and accepted Patwary’s $9,000, 6-month, 9% note for the amount due.
Apr. 20 Collected Sheldon Company note in full.
30 Received payment in full from Willingham Company on the amount due.
May 25 Accepted Potter Inc.’s $5,200, 3-month, 7% note in settlement of a past-due balance on account.
Aug. 18 Received payment in full from Patwary Company on note due.
25 The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated.
Sept. 1 Sold $13,100 of merchandise to Stanbrough Company and accepted a $13,100, 6-month, 10% note for the amount due.
Required:
Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year life and no salvage value. The equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement
Answer:
Oriole Company
Journal entries:
Jan. 5
Debit Accounts Receivable (Sheldon Company) $20,000
Credit Sales Revenue $20,000
To record sale of merchandise, terms n/15.
Jan. 20
Debit Notes Receivable (Sheldon Company) $20,000
Credit Accounts Receivable (Sheldon Company) $20,000
To record acceptance of 3-month, 8% note
Feb 18
Debit Notes Receivable (Patwary Company) $9,000
Credit Sales Revenue $9,000
To record sale of merchandise for a 6-month, 9% note
April 20
Debit Cash Account $20,400
Credit Notes Receivable (Sheldon Company) $20,000
Credit Interest on Notes Receivable $400
To record full settlement on account
April 30
Debit Cash Account $24,720
Credit Notes Receivable (Willingham Company) $24,000
Credit Interest on Notes Receivable $720
To record full settlement on account.
May 25
Debit Notes Receivable (Potter Inc.) $5,200
Credit Accounts Receivable (Potter Inc.) $5,200
To record acceptance of a 3-mont, 7% note.
Aug 18
Debit Cash Account $9,405
Credit Notes Receivable (Patwary Company) $9,000
Interest on Notes Receivable $405
To record full settlement on account.
Aug 25
Debit Accounts Receivable $5,291
Credit Notes Receivable (Potter Inc.) $5,200
Credit Interest on Notes Receivable $91
Sept. 1
Debit Notes Receivable (Stanbrough Company) $13,100
Credit Sales Revenue $13,100
To record sale of merchandise with a 6-month 10% notes receivable.
Dec. 31
Debit Depreciation Expense - Building $
Credit Accumulated Depreciation - Building $
To record depreciation expense for the year.
Debit Depreciation Expense - Equipment $
Credit Accumulated Depreciation - Equipment $
To record depreciation expense for the year.
Explanation:
Journal entries are prepared to record business transactions in the accounting books. They show which account is to be debited and which is to be credited in the ledger.
Note that the book values of building and equipment were not included in this question, hence no figures were added to the adjusting journal entries for depreciation expenses.
Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of each quarter and then pay off the principal amount at the end of the year. What is the effective annual rate on the loan
Answer:
10.38%
Explanation:
From the question above a bank offers to lend an amount of $10,000 for a period of 1 year
The bank expects an interest of $250 to be paid every 4 months
= $250×4
= $1,000
Total amount of interest= $1,000
The first step is to calculate the nominal interest
= (1000/10,000)×100
= 0.1×100
= 10%
Therefore, the effective annual rate on the loan can be calculated as follows
= (1+r/m)^m-1
r = 10% , m = 4
= [1+(10/100)/4]^-1
=[ (1+0.1/4)^4]-1
= (1+0.025^4)-1
= (1.025^4)-1
= 1.1038-1
= 0.1038×100
= 10.38%
Hence the effective annual rate in the loan is 10.38%