Answer:
The interest expense is $521
Explanation:
The amount of interest expense for the fiscal year is the interest expense of 31 days which ,in other words the interest incurred only in the month of July ,calculated thus:
interest expense=days in the month/360days*interest rate*loan amount
interest expense=31/360*10%*$60,500=$ 521
The interest expense for the current fiscal year rounded to the nearest dollar amount is $ 521
Bamboo Consulting is a consulting firm owned and operated by Lisa Gooch. The following end-of-period spreadsheet was prepared for the year ended July 31, 2016:
Bamboo Consulting
End-of-Period Spreadsheet
For the Year Ended July 31, 2016
Unadjusted Trial Balance Adjustments Adjusted Trial Balance
Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Cash 58,000 58,000
Accounts Receivable 106,200 106,200
Supplies 11,900 (a) 7,500 4,400
Office Equipment 515,000 515,000
Accumulated Depreciation 28,000 (b) 5,600 33,600
Accounts Payable 20,500 20,500
Salaries Payable (c) 2,500 2,500
Lisa Gooch, Capital 516,700 516,700
Lisa Gooch, Drawing 25,000 25,000
Fees Earned 348,500 348,500
Salary Expense 186,500 (c) 2,500 189,000
Supplies Expense (a) 7,500 7,500
Depreciation Expense (b) 5,600 5,600
Miscellaneous Expense 11,100 11,100
913,700 913,700 15,600 15,600 921,800 921,800
Based on the preceding spreadsheet, prepare an income statement, statement of owner’s equity, and balance sheet for Bamboo Consulting. Be sure to read the instructions for each financial statement carefully.
CHART OF ACCOUNTS
Bamboo Consulting
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Office Equipment
15 Accumulated Depreciation
LIABILITIES
21 Accounts Payable
22 Salaries Payable
EQUITY
31 Lisa Gooch, Capital
32 Lisa Gooch, Drawing
33 Income Summary
REVENUE
41 Fees Earned
EXPENSES
51 Salary Expense
52 Supplies Expense
53 Depreciation Expense
54 Miscellaneous Expense
Labels
Current assets
Current liabilities
Expenses
For the Year Ended July 31, 2016
July 31, 2016
Property, plant, and equipment
Revenues
Amount Descriptions
Add withdrawals
Decrease in owner’s equity
Increase in owner’s equity
Less withdrawals
Lisa Gooch, capital
Lisa Gooch, capital, August 1, 2015
Lisa Gooch, capital, July 31, 2016
Net income
Net loss
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and owner’s equity
Total property, plant, and equipment
Total revenues
1. Prepare an income statement for the year ended July 31, 2016 for Bamboo Consulting. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement.
2. Prepare a statement of owner’s equity for the year ended July 31, 2016 for Bamboo Consulting. No additional investments were made during the year. If a net loss has been incurred or there has been a decrease in owner’s equity, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items.
3. Prepare a balance sheet as of July 31, 2016 for Bamboo Consulting. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.
Answer:
Net income 135,300
Total Retained Earnings 652,000
Total Owner's Equity 627,000
Total Assets 650,000
Total liabilities and owner’s equity 650,000
Explanation:
First we find the net income by subtracting expense from revenues.
Bamboo Consulting
Income statement
For the Year Ended July 31, 2016
Revenues
Fees Earned 348,500
Expenses: 213,200
Salary Expense 189000
Supplies Expense 7,500
Depreciation Expense 5,600
Miscellaneous Expense 11,100
Net income 135,300
Then we find the retained earnings by adding net income to it.
Bamboo Consulting
Statement of Retained Earnings
For the Year Ended July 31, 2016
Lisa Gooch, Capital 516,700
Add Net income 135,300
Total Retained Earnings 652,000
Bamboo Consulting
Balance Sheet
For the Year Ended July 31, 2016
Cash 58,000
Accounts Receivable 106,200
Supplies 4,400
Office Equipment 515,000
Less Accumulated Depreciation 33,600
Office Equipment 481,400
Total Assets 650,000
Total liabilities
Salaries Payable 2,500
Accounts Payable 20,500
Total Owner's Equity 627,000
Retained Earnings 652,000
Less Drawings 25000
Total liabilities and owner’s equity 650,000
The total of debits Assets is equal to the total of Liabilities and Owner's Equity , credits.
Indicate how each of the following would shift the (1) marginal-cost curve, (2) average-variable-cost curve, (3) average-fixed-cost curve, and (4) average-total-cost curve of a manufacturing firm. In each case specify the direction of the shift.
Required:
a. A reduction in business property taxes.
b. An increase in the nominal wages of production workers.
c. A decrease in the price of electricity.
d. An increase in insurance rates on plant and equipment.
e. An increase in transportation costs.
Answer:
a. A reduction in business property taxes. Fixed cost.
Marginal cost curve = No change
Average variable cost curve = No change
Average-fixed-cost curve = Shift down
Average-total-cost curve = Shift down
b. An increase in the nominal wages of production workers is a Variable cost.
Marginal cost curve = Shift up
Average variable cost curve = Shift up
Average-fixed-cost curve = No change
Average-total-cost curve = Shift up
c. A decrease in the price of electricity (Variable cost)
Marginal cost curve = Shift down
Average variable cost curve = Shift down
Average-fixed-cost curve = No change
Average-total-cost curve = Shift down
d. An increase in insurance rates on plant and equipment. (Fixed cost)
Marginal cost curve = No change
Average variable cost curve = No change
Average-fixed-cost curve = Shift up
Average-total-cost curve = Shift up
e. An increase in transportation costs. (Variable cost)
Marginal cost curve = Shift up
Average variable cost curve = Shift up
Average-fixed-cost curve = No change
Average-total-cost curve = Shift up
Explanation:
Outback, Ltd., manufactures tactical LED flashlights in Melbourne, Australia. The firm uses an absorption-costing system for internal reporting purposes; however, the company is considering using variable costing. Data regarding planned and actual operations for 20x4 follow:Budgeted CostsPer Unit Total Actual CostsDirect material $12.40 $1,698,800 $1,587,200Direct labor 9.70 1,328,900 1,241,600Variable manufacturing overhead 5.10 698,700 652,800Fixed manufacturing overhead 4.10 561,700 570,700Variable selling expenses 7.60 1,041,200 919,600Fixed selling expenses 7.10 972,700 972,700Variable administrative expenses 3.00 411,000 363,000Fixed administrative expenses 2.60 356,200 362,200Total $51.60 $7,069,200 $6,669,800Planned Activity Actual ActivitySales in units 137,000 121,000Production in units 137,000 128,000Beginning finished-goods inventory in units 43,000 43,000The budgeted per-unit cost figures were based on the company producing and selling 137,000 units in 20x4. Outback uses a predetermined overhead rate for applying manufacturing overhead to its product. A total manufacturing overhead rate of $9.20 per unit was employed for absorption costing purposes in 20x4. Any overapplied or underapplied manufacturing overhead is closed to the Cost of Goods Sold account at the end of the year.The 20x4 beginning finished-goods inventory for absorption costing purposes was valued at the 20x3 budgeted unit manufacturing cost, which was the same as the 20x4 budgeted unit manufacturing cost. There are no work-in-process inventories at either the beginning or the end of the year. The planned and actual unit selling price for 20x4 was $70.90 per unit.1. Compute the value of Outback's 20x4 ending finished-goods inventory under absorption costing.(Do not round intermediate calculations.)2. Compute the value of Outback's 20x4 ending finished-goods inventory under variable costing. (Do not round intermediate calculations.)3. Compute the difference between Outback's 20x4 reported operating income calculated under absorption costing and calculated under variable costing. (Do not round intermediate calculations.)
Answer and Explanation:
The computation is shown below:
As we know that
1) Closing inventory = Beginning Inventory + Units produced - units sold
= 43,000 + 128,000 - 121,000
= 50,000 units
Now Cost per unit = Direct material per unit + direct labor per unit + Variable manufacturing overhead + fixed Manufacturing overhead
= $12.40 + $9.70 + $5.10 + $4.10
= $31.30
So, Ending finished-goods inventory under absorption costing is
= Closing Inventory × Cost per unit
= 50,000 units × $31.30
= $1,565,000
2)
Closing Inventory is
= 43,000 + 128,000 - 121,000
= 50,000 units
Cost per unit = Direct material per unit + direct labor per unit + Variable manufacturing overhead
= $12.40 + $9.70 + $5.10
= $27.20
So, Ending finished-goods inventory under Variable costing is
= Closing Inventory × Cost per unit
= 50,000 units × $27.20
= $1,360,000
3) Now the difference is
As we know that
Increase in inventory in units is
= Production - sales
= 128,000 - 121,000
= 7,000 units
And, the Fixed manufacturing overhead = $4.10
So, the Difference in reported income is
= Increase in inventory in units × Fixed manufacturing overhead
= 7,000 units × $4.10
= $28,700
Research suggests that people just care about getting a paycheck out of their jobs.
1. True
2. False
What people want out of their jobs is as varied as the jobs themselves.
1. True
2. False
Jane is extremely organized and efficient in her job as an assistant. She is so effective that she is offered a promotion to management, but she turns it down flatly, saying that she has no interest in moving up the ladder, that she is happy doing what she does because of the people she works with. What she needs from work is:________.
1. safety.
2. belongingness
3. power.
4. esteem
Answer (1)
False
Explanation:
Getting a paycheck is not what most people want out of their job, studies have shown that some people, contrary to the general believe actually look for other things asides paycheck from their jobs. Some of these factors that encourages people into finding fulfillment in their jobs includes permanent flexibility of the working time, commitment into to health and well being of the staffs by the employer of these people, etc. This factors creates a sense of purpose in the workers, encouraging them to put their body and soul into the job without thinking too much about the paycheck.
Answer (2)
True
Explanation:
Different people have different reasons for working, although some just work for the paycheck, others are driven by a sense of purpose among other things. To some people, the work setting provides a sort of belonging and gives them the impression of working in a team, which is what most people actually want.
Answer (3)
2. Belongingness
Explanation:
As stated, some workers just want the setting that provides a sense of belonging and security within a team. This type of workers are not too concerned with the paycheck increase that comes with a promotion if it takes them away from their perceived team.
The fiscal year-end unadjusted trial balance for Garcia Company is found on the trial balance tab. Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Garcia Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2019, follow.
1. Store supplies still available at the fiscal year-end amount to $2,150.
2. Expired insurance, an administrative expense, for the fiscal year is $1,560.
3. Depreciation expense on store equipment, a selling expense, is $6,700 for the fiscal year.
4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,150 of inventory is still available at fiscal year-end.
Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2017. (Round your answers to 2 decimal places.)
The following unadjusted trial balance is prepared at fiscal year-end for Garcia Company:
Cash $1,000
Merchandise Inventory 12,500
Store supplies 5,800
Prepaid Insurance 2,400
Store equipment 42,900
Accumulated depreciation - Store equipment $15,250
Accounts payable 10,000
Common Stock 5,000
Retained Earnings 27,000
Dividends 2,200
Sales 111,950
Sales discounts 2,000
Sales returns and allowances 2,200
Cost of goods sold 38,400
Depreciation express - Store equipment 0
Salaries expense 35,000
Insurance expense 0
Rent expense 15,000
Store supplies expense 0
Advertising expense 9,800
Totals $169,200 169,200
Answer:
Garcia Company
Computation of:
a) Current Ratio = Current Assets/Current Liabilities = $14,140/$10,000 = 1.4
b) Acid- Test Ratio = (Current Assets - Inventory - Prepaid Insurance - Stores Supplies )/Current Liabilities = ($14,140 - 10,150 - 2,150 - 840)/$10,000 = 0.1
Here, we disregarded Inventory, Prepaid Insurance, and Stores Supplies from the current assets because they are difficult to recover in order to settle short-term debts. So, only the Cash Balance was used for the calculation.
c) Gross Margin Ratio = Gross Profit/Net Sales x 100 = $69,350/$107,750 x 100 = 64.4%.
Explanation:
Adjusting Items:
a. Store Supplies:
Per Trial Balance $5,800
less year-end balance $2,150
Store Supplies Expense $3,650
b. Prepaid Insurance:
Per Trial Balance $2,400
less expired $1,560
Insurance Expense $840 (Admin Expense)
c. Accumulated Depreciation:
Per Trial Balance $15,250
Depreciation Expense $6,700
Accumulated depreciation at year-end $21,950
d. Ending Inventory $10,150
e. Adjusted Trial Balance:
Cash $1,000
Merchandise Inventory 12,500
Store supplies 2,150
Prepaid Insurance 840
Store equipment 42,900
Accumulated depreciation - Store equipment $21,950
Accounts payable 10,000
Common Stock 5,000
Retained Earnings 27,000
Dividends 2,200
Sales 111,950
Sales discounts 2,000
Sales returns and allowances 2,200
Cost of goods sold 38,400
Depreciation expense - Store equipment 6,700
Salaries expense 35,000
Insurance expense 1,560
Rent expense 15,000
Store supplies expense 3,650
Advertising expense 9,800
Totals $175,900 175,900
f. Income Statement
Sales $111,950
Sales discounts (2,000)
Sales returns and allowances (2,200)
Net Sales $107,750
Cost of Goods Sold 38,400
Gross Profit $69,350
Selling Expenses:
Depreciation $6,700
Salaries expense 17,500
Rent expense 7,500
Store supplies expense 3,650
Advertising expense 9,800 (45,150)
Administrative Expenses:
Insurance $1,560
Salaries expense 17,500
Rent expense 7,500 (26,500)
Net Loss ($2,360)
Inventory Shrinkage ($2,350)
Retained Earnings b/f 27,000
Dividends (2,200)
Retained Earnings c/f $20,090
g) Balance Sheet
Assets:
Cash $1,000
Merchandise Inventory 10,150
Store supplies 2,150
Prepaid Insurance 840 $14,140
Store equipment 42,900
Accumulated depreciation (21,950 ) $20,950
Total Assets $35,090
Liabilities + Equity:
Accounts payable $10,000
Common Stock 5,000
Retained Earnings 20,090
Total Liabilities + Equity $35,090
h) Current Ratio: According to investopedia.com, "The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year," showing investors and analysts how a company can maximize its current assets to meet its current debt and other payables.
i) Acid-test or quick ratio is the financial ratio that compares a company's most short-term assets to its most short-term liabilities to see if a company has enough cash to pay its immediate liabilities, such as short-term debts, disregarding difficult-to-liquidate current assets such as inventory.
j) The gross margin ratio represents a percentage of the gross profit over the net sales, multiplied by 100. This ratio is also known as the gross profit margin or the gross profit percentage, or simply the gross margin.
Identify which of the objectives of business writing is not being met in the following message.
Jeanine, I want you to write the report because I’m too tired, and I want to go spend time with my family. Plus, you are a better writer than I am.
A. Purposeful
B. Economical
C. Audience oriented
Answer:
C. Audience oriented
Explanation:
Audience oriented refers when the number of people are available to listen or we are convey our message to large number of audience.
According to the given situation Jeanine, I want you to compose the report because I'm too exhausted and I want to spend some time with my family. Besides this, you are better writer. This situation indicates that there is a purpose and economical but not audience oriented as it includes two people only.
Exposition, Inc. had 200 units of inventory on hand at the end of the year. These were recorded at a cost of $14 each using the last-in, first-out (LIFO) method. The current replacement cost is $10 per unit. The selling price charged by Exposition, Inc. for each finished product is $16. As a result of recording the adjusting entry as per the lower-of-cost-or-market rule, the gross profit will ________. Group of answer choices increase by $2,000 decrease by $2,000 increase by $800 decrease by $800
Answer:
decrease by $800
Explanation:
The computation of the gross profit is calculated below:
= Number of inventory units on hand at the end of the year × (Cost per unit - current replacement cost per unit)
= 200 units × ($14 - $10)
= 200 units × $4
= $800
This $800 represents the decrease in gross profit and the same is to be considered
hence, the last option is correct
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month.
Cost Formulas
Direct labor $16.20q
Indirect labor $4,300 $1.70q
Utilities $5,600 $0.70q
Supplies $1,400 $0.20q
Equipment depreciation $18,400 $2.90q
Factory rent $8,200
Property taxes $2,700
Factory administration $13,200 $0.80q
The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below.
Direct labor $66,360
Indirect labor $10,620
Utilities 8,930
Supplies 2,450
Equipment depreciation $30,000
Factory rent 8,600
Property taxes $2,700
Factory administration $15,796
Required:
a. Prepare the Production Department's planning budget for the month
b. Prepare the Production Department's flexible budget for the month.
Answer and Explanation:
a. The Preparation of the Production Department's planning budget for the month is shown below:-
Packaging Solutions Corporation
Production Department's planning budget for the month
Particulars Amount
Budgeted labor hours 4,200
Direct labor $16.20 × 4,200 $68,040
Indirect labor $4,300 + $1.70 × 4,200 $11,440
Utilities $5,600 + $0.70 × 4,200 $8,540
Supplies $1,400 + $0.20 × 4,200 $2,240
Equipment
depreciation $18,400 + $2.90 × 4,200 $30,580
Factory rent $8,200
Property taxes $2,700
Factory
administration $13,200 + $0.80 × 4,200 $16,560
Total cost $148,300
To reach at production Department's planning budget we simply added all the expenses.
b. The Preparation of the Production Department's flexible budget for the month is shown below:-
Packaging Solutions Corporation
Production Department's flexible budget for the month
Particulars Amount
Actual labor hours 4,000
Direct labor $16.20 × 4,000 $64,800
Indirect labor $4,300 + $1.70 × 4,000 $11,100
Utilities $5,600 + $0.70 × 4,000 $8,400
Supplies $1,400 + $0.20 × 4,000 $2,200
Equipment
depreciation $18,400 + $2.90 × 4,000 $30,000
Factory rent $8,200
Property taxes $2,700
Factory
administration $13,200 + $0.80 × 4,000 $16,400
Total cost $143,800
To reach at production Department's flexible budget we simply added all the expenses.
The Second Circuit and Eleventh Circuit Courts of Appeal affirmed dismissal of securities fraud claims because the plaintiffs did not adequately plead scienter under the standard imposed by the Private Securities Litigation Reform Act of 1995. Scienter is defined as which of the following?(a) The standard of reasonableness required of a prudent person in the management of his affairs(b) An untrue statement of a material fact(c) The intent to deceive, manipulate, or defraud(d) The failure to maintain due diligence during the issuance of new securities known as an IPO
Answer:
Option C
Explanation:
In simple words, scienter relates to the psychological condition where one is conscious that his or her acts, words, etc., are false, dishonest or unlawful: sometimes seen as a presumption of guilt. Scienter can be defined as the legal term as well for malicious intentions or knowledge and understanding.
An offending entity then has prior information of an act or event's "wrongness" before actually perfroming it. For instance if an individual sells his friend an old car with car brakes that don't work but the seller doesn't know at all about the brake pad problem, then the seller doesn't have a scienter.
Walberg Associates, antique dealers, purchased the contents of an estate for $39,100. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates warehouse was $2,000. Walberg Associates insured the shipment at a cost of $310. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $650. Determine the cost of the inventory acquired from the estate
Answer:
$42,060
Explanation:
Walberg Associates cost of the inventory acquired from the estate will be:
Cost of inventory
Price 39,100
Transportation 2,000
Shipment Insurance 310
Cleaning and refurbishing 650
Total cost of inventory 42,060
the cost of the inventory acquired from the estate is $42,060.
Inventory is the goods and materials that a business holds for the ultimate goal of resale, production, or utilization.
It is a current asset on a company's balance sheet, and it can be categorized as raw materials, work-in-progress, or finished goods. Inventory management is a discipline primarily about specifying the shape and placement of stocked goods.
Walberg Associates' cost of the inventory acquired from the estate will be:
Cost of inventory
Price 39,100
Transportation 2,000
Shipment Insurance 310
Cleaning and refurbishing 650
Total cost of inventory $42,060
Therefore, total cost of inventory $ 42,060.
Learn more about inventory here
https://brainly.com/question/14934429
#SPJ6
The creation of business enterprises where a head office managed geographically separate operational units was facilitated by: Group of answer choices The development of management as a practical science Improvements in transportation and communication—especially the railroad and telegraph The development of the multidivisional corporation The introduction of limited liability
Answer:
Improvements in transportation and communication—especially the railroad and telegraph.
Explanation:
The creation of business enterprises where a head office managed geographically separate operational units was facilitated by improvements in transportation and communication, especially the railroad and telegraph.
A business enterprise is an entity that provides goods and services to the public for the sole purpose of making profits. It could be a partnership, sole-proprietorship, limited liability or a corporation.
In order for the head office to manage geographically separate operational units, it is primarily important to ensure there's an efficient and effective way to transport their products, equipments etc to their branch offices. Also, a credible means of communication has to be put in place for sharing of information, ideas and even for meetings.
A profit-maximizing firm will use more of a factor of production when: The extra cost of using an additional factor unit is less than the marginal revenue product of the additional factor unit. The marginal physical product of the additional factor unit is greater than the marginal revenue product (MRP) of the additional factor unit. The marginal physical product of the additional factor unit is less than the marginal revenue product of the additional factor unit. The extra cost of using an additional factor unit is less than the marginal physical product of the additional factor unit.
Answer:
The extra cost of using an additional factor unit is less than the marginal revenue product of the additional factor unit.
Explanation:
A profit maximizing firm will continue to use more factors of production as long as the cost of the extra factors of production is equal to or less than the marginal revenue product. Marginal revenue product refers to the additional revenue generated by employing extra units of factors of production. It is calculated by multiplying the marginal product (the number of extra units produced) times the selling price of the extra units produced.
E.g. a firm that produces chairs will continue to increase its production level as long as the cost of direct labor, materials and variable manufacturing overhead is less or equal to the selling price of the chairs.
A profit maximizing firm is going to use more of a factor of production when The extra cost of using an additional factor unit is less than the marginal revenue product of the additional factor unit.
The correct answer is option A.
The reason for this answer is the fact that we have the condition where
MC = MRP
Marginal cost is equal to the Marginal revenue product.
The firm is going to produce more given the fact as more output revenue is more than cost.
The additional cost of another factor is Marginal cost, MC.
Here extra cost of using another factor = MC
given that WR = MC where wage is a cost,
Then the WR is greater than MRP hiring an additional worker would result in less revenue. So workers have to be hired less till we arrive at MR=MRP.
Read more https://brainly.com/question/14229841?referrer=searchResults
You found your dream vacation cottage in the mountains and your offer of $78,000 was accepted. You plan to put 20% down and will roll the closing costs of $3,500 into the mortgage. Congratulations, your 15 year mortgage has been approved at an interest rate of 4.125%. (You must use the attached Excel loan amortization schedule). How much are you financing
Answer:
The amount of finance is $65,900
Explanation:
The amount of financing is the amount of the loan given by the mortgage finance provider which in this case is the cost of the property minus down payment plus closing costs.
cost of property is $78,000
downpayment is 20% of the property cost=20%*$78,000=$15,600
closing costs is $3,500
the amount of finance=$78,000-$15,600+$3,500=$65,900
Stephen plans to purchase a car 5 years from now. The car will cost $43,011 at that time. Assume that Stephen can earn 7.11 percent (compounded monthly) on his money. How much should he set aside today for the purchase?
Answer:
$30,174.74
Explanation:
The computation of present value is shown below:-
Future value = Present value × (1 + Rate of interest ÷ 1200)^12 × time period
$43,011 = Present value × (1 + 7.11 ÷ (12 × 100)^(12 × 5)
$43,011 = Present value × (1 + 7.11 ÷ 1,200)^60
$43,011 = Present value × (1 + 0.005925 )^60
Present value = $43,011 ÷ (1 + 0.005925 )^60
= $43,011 ÷ (1.005925 )^60
= $43,011 ÷ 1.425397857
= $30,174.73317
or
= $30,174.74
Therefore for computing the present value we simply applied the above formula.
We also attached the spreadsheet for better understanding
In compounded monthly, the interest rate is divided by 12 months and the time period is multiplied by 12 months and the same is to be considered
Consider the market for ice cream. a. Illustrate the effect that soaring summer temperatures would have on the market for ice cream. Instructions: Use the line tool provided "Curve" to draw the appropriate curve. b. Illustrate the effect that a decrease in the price of milk (an input to ice cream) would have on the market for ice cream. Instructions: Use the line tool provided "Curve" to draw the appropriate curve. c. Illustrate the effect that a decreasing number of ice cream shops would have on the market for ice cream. Instructions: Use the line tool provided "Curve" to draw the appropriate curve. d. Use the line tool to draw a new curve that shows the effect that the release of a report linking ice cream to tongue cancer would have on the market for ice cream. Instructions: Use the line tool provided "Curve" to draw the appropriate curve.
Answer:
a. Illustrate the effect that soaring summer temperatures would have on the market for ice cream.
The demand curve of ice cream would shift to the right because demand would increase. This would raise the price of ice cream, and supplier would now produce more, shifiting the supply curve to the right as well.
b. Illustrate the effect that a decrease in the price of milk (an input to ice cream) would have on the market for ice cream.
Production costs would fall, causing suppliers to produce more, shifting the supply curve to the right. This would decrease the price of ice cream, raising demand.
c. Illustrate the effect that a decreasing number of ice cream shops would have on the market for ice cream.
There are less shops, which means, less suppliers. The supply curve shifts to the left, reducing production and raising the price. As a result of the higher price, demand would fall as well, shifiting the demand curve to the left.
d. Use the line tool to draw a new curve that shows the effect that the release of a report linking ice cream to tongue cancer would have on the market for ice cream.
Both suppliers and consumers would react immediately. Suppliers would produce less, shifiting the supply curve to the left, and consumers would demand less, shifting the demand curve to the left as well. Because of the link to cancer, supply and demand could fall so much as to make ice cream essentially a niche.
Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer hard drive is $45. Ortega would like a profit of $10 per drive. What target cost Ortega should set to accomplish this objective
Answer:
Ortega should set a target cost of $35
Explanation:
Target cost is the competitive market price of a product minus the desired profit margin.
Competitive market price in this case is $45
Desired profit margin is $10
Target cost=competitive market price-desired profit amount
target cost=$45-$10=$35
Target cost for which the company must produce the hard drive in order to sell at $45 per drive and make a profit of $10 per drive is $35
Accounting for notes receivable and accruing interest
Carley Realty loaned money and received the following notes during 2018.
Note Date Principal Amount Interest rate term
1. April 1 $6000 7% 1 year
2. Sept 30 $12000 6% 6 month
3. Sept 19 $18000 8% 90 days
Requirements1. Determine the maturity date and maturity value of each note.2. Journalize the entries to establish each Note Receivable and to record collection of principal and interest at maturity. Include a single adjusting entry on December 31, 2018, the fiscal year-end, to record accrued interest revenue on any applicable note. Explanations are not required. Round to the nearest dollar.
Answer: Please see below
Explanation:
Maturity dates
I year after April 1st 2018 = April 1st 2019
6 months after sept 30 2018 = March 30, 2019
90 days after september 19= December 18 2018
Maturity value of each note
note 1
Principal = 6000
Interest= 7%
period= 6months
interest earned= 6000 x 7% x 12/12 = 420
Maturirty value = principal + interest= 6000 + 420= $6,420
note 2
Principal = 12,000
Interest= 6%
period= 6months
interest earned= 12000 x 6% x 6/12 = 360
Maturirty value = principal + interest = $12,360
note 3
Principal = 18000
Interest= 8%
period= 90 days
interest earned= 18000 x 8% x 90/360 = 360
Maturirty value = principal + interest = $18,360
interest revenue accured from the three notes = $420 + $360+360
=$1140
on April 1st 2018
Account Debit Credit
Notes 1 receivable $6, 000
Cash collected $6,000
september 30, 2018
Notes 2 receivable $12,000
Cash collected $12,000
September 19, 2018
Notes 3 receivable $18,000
Cash collected $18,000
December 31st 2018
Interest receivable $1140
interest revenue $1140
1. Cecilia’s grandfather set up a savings account for her with a $25,000 gift when she was born. The account accumulated interest annually at a rate of 6% per year and no other deposits were made to the account. Cecilia is 21 years old today. To date, how much has accumulated in the account?
Answer:
The accumulated amount in the account = $84,989.09
Explanation:
The amount that has been accumulated in the account is the future value of 25,000 invested invested at 6% interest compounded annually .
FV = PV × (1+r)^n
Future Value(FV) = ?, Present Value(PV) - 25,000, rate(r)- 6%, number of years(n)-21
FV = 25,000× (1.06)^21
FV = $84,989.09
The accumulated amount in the account = $84,989.09
Rachelle purchased a warehouse 19 years ago in the month of September. The purchase price was $400,000. In May of the current year (year 20), Rachelle sold the warehouse. She will be able to deduct $ for depreciation on the warehouse in the year of sale. (Round your answer to the nearest whole dollar.)
Suppose that Company A requires that its employees complete a time-consuming training sequence upon being hired. Providing this training is expensive for Company A so it does not want to lose employees its invested in. To entice employees to stay, Company A pays its workers above market wage. Which of the following models does this scenario illustrate?
a) the implicit contract model
b) the adverse selection of wage cuts argument
c) efficiency wage theory
d) the relative wage coordination argument
Answer:
Presenta Don Quijote de la Mancha: autor,
fechas, tema, personajes.
2. Relata las diferentes etapas de la historia
de don Quijote de la Mancha.
3. Elige un adjetivo para calificar a don Quijote
y a Sancho Panza y justifica: aventurero,
razonable, loco, heroico, te
Explanation:
Presenta Don Quijote de la Mancha: autor,
fechas, tema, personajes.
2. Relata las diferentes etapas de la historia
de don Quijote de la Mancha.
3. Elige un adjetivo para calificar a don Quijote
y a Sancho Panza y justifica: aventurero,
razonable, loco, heroico, te
Presenta Don Quijote de la Mancha: autor,
fechas, tema, personajes.
2. Relata las diferentes etapas de la historia
de don Quijote de la Mancha.
3. Elige un adjetivo para calificar a don Quijote
y a Sancho Panza y justifica: aventurero,
razonable, loco, heroico, te
Bryce Phillips began buying and selling outdoor sporting equipment to support his skiing and traveling habits. From there, he founded Evo, a company that sells quality outdoor equipment and clothing at reasonable prices. With a strong organizational culture and set of guiding principles, managers at Evo, are challenged to promote growth in an unpredictable environment. Considering the nature of the company, which demographic trend accurately represents the greatest marketing challenge for Evo?
a) Shrinking workforce
b) Aging population
c) Growth of minorities in the workplace
d) More women in the workforce
Answer:
The correct answer is: b) Aging population.
Explanation:
In the scenario described by the question above, it can be said that the demographic trend that accurately represents the biggest marketing challenge for Evo, is the aging of the population.
This is the most suitable alternative to the question, since when analyzing the nature of the company, which sells sports equipment and quality clothes for sports, it can be deduced that the corporate culture and its target audience is composed of a generation of younger people who play outdoor sports, so if the population is aging, the company would have a major marketing challenge to be able to win over this specific audience of older people whose profiles and values may not be consistent with Evo's values .
Kleiner Merchandising Company Accumulated depreciation $ 700 Beginning inventory 5,000 Ending inventory 1,700 Expenses 1,450 Net purchases 3,900 Net sales 9,500 Krug Service Company Expenses $ 12,500 Revenues 14,000 Cash 700 Prepaid rent 800 Accounts payable 200 Equipment 1,300 Required: a. Compute the goods available for sale, and the cost of goods sold and gross profit for the merchandiser. Hint: Not all information may be necessary. b. Compute net income for each company.
Answer:
Find below properly indented question:
Kleiner Merchandising Company
Accumulated depreciation $ 700
Beginning inventory 5,000
Ending Inventory 1,700
Expenses 1,450
Net Purchases 3,900
Net Sales 9,500
Krug Service Company
Expenses $ 12,500
Revenues 14,000
Cash 700
Prepaid rent 800
Accounts payable 200
Equipment 1,300
Merchandiser:
cost of goods available is $8,900
Cost of goods sold is $7,200
Gross profit is $2,300
Net income is $850
Krug Service company:
Net income is$1,500
Explanation:
Merchandiser:
Cost of goods available=beginning inventory+net purchases
costs of goods available=$5,000+$3,900=$8,900
Cost of goods sold=cost of goods available-ending inventory
cost of goods sold=$8,900-$1,700=$ 7,200.00
Gross profit =net sales-cost of goods sold
gross profit=$9,500-$7,200=$2,300
Net income=gross profit-expenses
net income=$2,300-$1450=$850
Krug Service company
Net income=revenue-expenses=$14,000 -$12,500=$1,500
You pay $23,100 to the Laramie Fund, which has a NAV of $21 per share at the beginning of the year. The fund deducted a front-end load of 5%. The securities in the fund increased in value by 10% during the year. The fund's expense ratio is 1.6% and is deducted from year-end asset values. What is your rate of return on the fund if you sell your shares at the end of the year
Answer:
2.83%
Explanation:
Actual initial investment=$23,100-5% front-end load=$23,100-(5%*$23100)=$21,945.00
The number of shares= 21,945.00/$21=1045 shares
The securities increased in value by 10% i.e $21 increased by 10%
new security value=$21*(1+10%)=$23.1 0
If the shares were sold at end of the year the cash receivable by the investor is computed thus:
cash=new security value*number of shares-1.6% expense ratio
cash =23.10*1045=$24,139.50
cash paid to investor= 24,139.50-( 24,139.50*1.6%) =$23,753.27
rate of return=cash received-cash invested/cash invested= (23,753.27-23,100)/23100
Maritime Marine Company has total estimated factory overhead for the year of $986,800, divided into four activities: fabrication, $386,400; assembly, $207,900; setup, $112,000; and inspection, $280,500. Maritime manufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows:
Fabrication Assembly Setup Inspection
Speedboat 1,200 dlh 1,800 dlh 60 setups 600 inspections
Bass boat 1,800 1,200 100 200
3,000 dlh 3,000 dlh 160 setups 800 inspections
Required:
a. Determine the activity rates for each activity.
b. Determine the factory overhead cost per unit for each product, using activity-based costing.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Estimated costs:
fabrication= $386,400
assembly= $207,900
setup= $112,000
inspection= $280,500.
Fabrication Assembly Setup Inspection
Speedboat: 1,200 dlh 1,800 dlh 60 setups 600 inspections
Bass boat: 1,800 1,200 100 200
3,000 dlh 3,000 dlh 160 setups 800 inspections
First, we need to calculate the overhead rate for each activity:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
fabrication= 386,400/3,000= $128.8 per direct labor hour
assembly= 207,900/3,000= $69.3 per direct labor hour
setup= 112,000/160= $700 per setup
inspection= 280,500/800= $350.63 per inspection
Now, we can allocate overhead to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Speedboat= 1,200*128.8 + 1,800*69.3 + 60*700 + 600*350.63
Speedboat= $531,678
Bass boat= 1,800* 128.8 + 1,200*69.3 + 100*700 + 200*350.63
Bass boat= 455,126
In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)Case Unit Price Unit Variable Cost Fixed Costs Depreciation1 $2,800 $2,295 $7,000,000 $1,250,000 2 51 43 65,000 160,000 3 12 4 1,800 700 Case Accounting break-even Cash break-even1 2 3
Answer:
FIRST CASE;
Accounting Break even = $13,094
Cash break even = $10,394
SECOND CASE;
Accounting Break even = $6,870
Cash break even = $1,387
THIRD CASE;
Accounting Break even = $189
Cash break even = $15
Explanation;
#Accounting break even point refers to the level of sales whereby a business generates exactly zero profits, i.e volume of sales or revenue exactly equals total expenses.
It can be calculated using below formula;
Accounting Break even = (Fixed cost per unit + depreciation) ÷ (unit price per unit - variable cost per unit)
#The cash break-even point provide a minimum amount of revenue of a firm generated from sales that are needed to provide positive cash flow.
It can be calculated using the below formula;
Cash break even = Fixed cost ÷ (selling price per unit - variable cost per unit )
FIRST CASE:
Accounting Break Even = ( 1,850,000 + $7,120,000) ÷ (3,340 - 2655) = 13,094unit
Cash Break Even = ($7,120,000) ÷ (3,340 - 2655)
= 10,394
SECOND CASE;
Accounting Break even = ($86,000 + $340,000) ÷ (141 - 79)= 6870
Cash break even = ($86,000) ÷ (62)= 1,387
THIRD CASE;
Accounting Break even = ($3,600 + 760) ÷ (30 - 7)= 189
Cash break even = ($3,600) ÷ (30 - 7) = 156
Arbitrage and spot exchange rates
Suppose you trade dollars and euros for a bank that has branches in Los Angeles and Frankfurt. You can electronically transfer the funds between the two branch locations at no cost, and trading commissions are negligible. The current dollar-per-euro exchange rate in Los Angeles is E$/EURLA=1.5952E$/EURLA=1.5952 , while in Frankfurt, it is E$/EURFR=1.6244E$/EURFR=1.6244. You can make a profit for the bank if you buy euros in________and sell them in_______. Assuming other foreign exchange traders face the same exchange rates you do, they will buy dollars in and sell them in_______. As a result, the dollar-per-euro exchange rate in Frankfurt (E$/EURFRE$/EURFR) will______, and the dollar-per-euro exchange rate in Los Angeles (E$/EURLAE$/EURLA) will________.
Answer:
1. buy in Los Angeles, sell in Frankfurt
2. buy in Frankfurt; sell in Los Angeles
3. remain unchanged
Explanation:
Note that as for me working for the bank I'm buying Euros, in turn to sell to receive the Dollar.
1. Thus, in Los Angeles the exchange rate indicates a profit if it is bought there and sold in Frankfurt where the Euros values more than it does in Los Angeles.
2. For the foreign exchange traders who already own Euros and want to buy dollars, they would make a profit by buying Dollars in Frankfurt where the Euros has greater and value and selling the bought dollars in Los Angeles where the dollar has greater value.
3. This is the case because there's a balance in demand as a result of the arbitrage trading.
A purchasing manager's performance is best evaluated using information such as:_______
a. price and terms bargaining effectiveness, achievement of quality goals, and direct materials price variance
b. direct materials flexible-budget variance
c. usage efficiency and direct materials price variance
d. direct manufacturing labor flexible-budget variance
Answer:
A
Explanation:
price and terms bargaining effectiveness, achievement of quality goals, and direct materials price variance
purchasing evaluation provides feedback to the purchasing department on the effectiveness of an organzations purchasing strategies and effectiveness. The obvious performance measure of the success of this department is the amount of money saved by the organization. Purchasing effectiveness can be assessed by reviewing inventory turnover ratio.
bargaining effectively with suppliers is a reason for favorable material price variance
Doisneau 16-year bonds have an annual coupon interest of 9 percent, make interest payments on a semiannual basis, and have a $1 comma 000 par value. If the bonds are trading with a market's required yield to maturity of 16 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds?
Answer:
discount bond.
Explanation:
A premium bond is one whose price is above its par value, while a discount bond is one whose price is below its par value. Therefore, to find the answer, we need to find the price of the bond.
To find the price of the bond, we use the formula attached in this answer.
In the formula, YTM = Yield to Maturity, C = Value of the Coupon payment, P = par value of the bond, and n = number of periods till matirity.
We have this information.
YTM = 16%
P = 1,000
The number of periods n = 32 because it is a 16-year bond that pays a semiannual coupon, so 16*2 = 32
Finally, the coupon payment is 45 because the coupon rate is 9%, and the coupon is paid semiannually, so the formula is 9%*1,000 / 2.
Plugging the amounts into the formula we obtain the following answer:
Price of the bond = 287.5
Because the price of the bond is so much lower than its par value, the bond is a discount bond.
agricultural workers and industrial laborers were almost the same number a) during 1850 b) during 1880 c) during 1890 d) during 1870
Answer:
I'm not 100% but I strongly believe it is A. as after the Civil War post 1860's the Industrial Revolution took over the nation and a majority of laborers/workers were doing Industrial work.
Explanation:
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $ 361,000 debit Allowance for uncollectible accounts 560 debit Net Sales 806,000 credit All sales are made on credit. Based on past experience, the company estimates 0.4% of net credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Answer:
Accounts receivable $361,000 debit
Allowance for uncollectible accounts $560 debit
Net Sales $806,000 credit
0.4% of credit sales are uncollectible = 0.4% x $806,000 = $3,224
adjusting entry:
December 31, 202x
Dr Bad debt expense 3,224
Cr Allowance for doubtful accounts 3,224
Allowance for doubtful accounts is a contra asset account that reduces accounts receivable.