Answer:
January
purchases = 32,800 units
required cash to pay for purchases = $24,600
February
purchases = 8,900 units
required cash to pay for purchases = $6,675
March
purchases = 7,800 units
required cash to pay for purchases = $5,850
Explanation:
each tile costs $0.75, paid in cash, three month stock
28,000 tiles in stock
estimated sales:
January 13,300 February 18,700 March 13,700 April 15,100 May 8,900 June 7,800January
beginning inventory January 28,000
estimated sales 13,300
desired ending inventory = sales for next three months = 18,700 + 13,700 + 15,100 = 47,500
purchases = 47,500 + 13,300 - 28,000 = 32,800
required cash to pay for purchases = 32,800 x $075 = $24,600
February
beginning inventory January 47,500
estimated sales 18,700
desired ending inventory = sales for next three months = 13,700 + 15,100 + 8,900 = 37,700
purchases = 37,700 + 18,700 - 47,500 = 8,900
required cash to pay for purchases = 8,900 x $075 = $6,675
March
beginning inventory January 37,700
estimated sales 13,700
desired ending inventory = sales for next three months = 15,100 + 8,900 + 7,800 = 31,800
purchases = 31,800 + 13,700 - 37,700 = 7,800
required cash to pay for purchases = 7,800 x $075 = $5,850
Which one of the following describes the total overhead variance?
A. The difference between what was actually incurred and the flexible budget amount.
B. The difference between what was actually incurred and overhead applied.
C. The difference between the overhead applied and the flexible budget amount.
D. The difference between what was actually incurred and the total production budget
Answer:
B. The difference between what was actually incurred and overhead applied.
Explanation:
This could be simply as the difference of what was actually incurred and overhead that was been applied or it could be the difference between the amount that would be absorbed into the cost/unit of the actual units of a certain commodity been produced, and the actual cost of the fixed overheads.
This could be seen in a certain number of labor hours taken to manufacture a an amount of product, as it may differ significantly from the standard or budgeted number of hours of the work been done.
Great Harvest Bakery purchased bread ovens from New Morning Bakery. New Morning Bakery was closing its bakery business and sold its two-year-old ovens at a discount for $697,000. Great Harvest incurred and paid freight costs of $33,500, and its employees ran special electrical connections to the ovens at a cost of $4,700. Labor costs were $36,300. Unfortunately, one of the ovens was damaged during installation, and repairs cost $4,700. Great Harvest then consumed $870 of bread dough in testing the ovens. It installed safety guards on the ovens at a cost of $1,470 and placed the machines in operation.Prepare a schedule to show the amount at which the ovens should be recorded irn Great Harvest's Equipment account.
Answer: The answer is given below
Explanation:
The schedule showing the amount recorded goes thus:
Particulars Amount($)
Purchase price 697000
Freight costs 33500
Electrical connection 4700
labor costs 36300
Bread dough used in testing oven
870
Safety Guards 1470
Total cost of equipment = 773840
The repairs cost 4700 is excluded because it is not a normal cost of the installation, therefore, it should be recorded as an expense in the income statement.
Graphical Designs is offering 20-20 preferred stock. The stock will pay an annual dividend of $20 with the first dividend payment occurring 20 years from today. The required return on this stock is 5.10 percent. What is the price of the stock today?
Answer:
$ 152.35
Explanation:
The stock price today can be computed by first determining the future value of the dividend in perpetuity ,then discounting that to present value.
Value in perpetuity=dividend/required return
dividend is $20
required return is 5.10%
value in perpetuity=$20/5.10%=$392.16
The price of the stock today is the present value of the value in perpetuity
PV=FV*(1+r)^-n
FV is $392.16
r is the required return of 5.10%
n is the number of years involved,which is 19,it is 19 because counting from today till the next next years would be first day of the next twenty years
price=$392*(1+5.10%)^-19=$ 152.35
Suppose that banks are less able to raise funds and so lend less. Consequently, because people and households are less able to borrow, they spend less at any given price level than they would otherwise. The crisis is persistent so lending should remain depressed for some time.
Refer to Financial Crisis. In the long run, if the Fed does not respond, the change in price expectations created by the crisis shifts:
a) short-run aggregate supply right.
b) aggregate demand right.
c) aggregate demand left.
d) short-run aggregate supply left.
Answer:
The correct answe is: d) short-run aggregate supply left.
Explanation:
In this regard, one can observe an existing problem of banks that are less able to raise funds and therefore lend less. This cycle leads to less capital inflow, due to the reduced amount of assets in the budget.
Therefore the expected scenario is the behavior of the cumulative curve of the source in the short term moving to the left, due to the decrease in the growth of the investment pattern.
A company has a process that results in 1,300 pounds of Product A that can be sold for $13.00 per pound. An alternative would be to process Product A further at a cost of $13,600 and then sell it for $23.00 per pound. What is the additional profit (loss) that would result from processing the product further?
Answer:
If the company process further the units, income will decrease by $600.
Explanation:
Giving the following information:
A company has a process that results in 1,300 pounds of Product A that can be sold for $13.00 per pound.
An alternative would be to process Product A further for $13,600 and then sell it for $23.00 per pound.
We need to determine the result of further processing the product.
Sell as-is:
Effect on income= 1,300*13= $16,900 increase
Continue processing:
Effect on income= 1,300*23 - 13,600= $16,300
It is more profitable to sell the units before further processing.
The Mini-Case "Pay-for-Delay Agreements" states that some incumbent producers of drugs with expiring patents paid potential generic producers to delay entry into the market. Why were incumbents willing to offer enough to potential entrants to make them delay entry? How will the 2013 Supreme Court decision allowing potential legal action against the companies affect this calculation? Incumbents were willing to offer enough to potential entrants to make them delay their entry to A. increase market competition. B. eventually deter entry completely. C. charge a monopoly price. D. produce generic drugs. E. lower fixed costs.
Answer: charge a monopoly price
Explanation:
Patents provide an exclusive right to the firm in the production and sale of a drug. This provides the firm exclusive market power to decide the price and the quantity and therefore the firm is able to charge a monopoly price and also earn monopoly profits.
When an existing patent expires and the generic producers enter the market, the price reduces due to an increase in the supply of the erstwhile patented drug. This will reduce the monopoly profit of incumbent producers. Therefore, they will seek to deter the entry of generic drug makers in order to safeguard their monopoly profits and price.
Therefore, incumbents were willing to give enough to potential entrants so as to make them delay entry to charge a monopoly price.
The effect of the 2013 Supreme Court decision allowing legal action against these companies is increase in the cost of pay-for-delay agreements and also reduce incumbent profits from these agreements.
Suppose a stock sells for $1,200 and pays no dividends. At the end of one year, the stock’s price decreases to $1,000. What is the dollar return on an investment in this stock? $200.00 -$0.17 -$200.00
Answer:
ROI= -$200
Explanation:
Rate of return is also called return on investment. It measires the increase or decrease relative to initial cost of investment.
For example if $500 was invested in a business and eventually it brings in a profit of $20 the return on the initial investment will be the $20 profit. If however there is a loss it will result in a negative return on investment.
In this scenario the stock does not pay any dividends and initial cost was $1,200
To get the return on investment
ROI= Final investment amount - Initial investment amount
ROI= 1,000 - 1,200
ROI= -$200
ovar Inc., a U.S. multinational, began operations this year. Jovar had pretax U.S. source income and foreign source income as follows: U.S. source income $ 600,000 Foreign source income—Country O 100,000 Total $ 700,000 Jovar paid $50,000 income tax to Country O. Compute Jovar's U.S. tax liability if it takes the foreign tax credit.
Answer:
$204,000
Explanation:
Computation of Jovar's U.S. tax liability
First step isnto determine the U.S precredit tax.
34%×$700,000
=$238,000
U.S Precredit tax = $238,000
Second step is to calculate the foreign tax credit.
Therefore the Credit is limited to:
$238,000 * 100/700
= $34,000.
Hence:
$238,000-$34,000
=$204,000
Therefore Jovar's U.S. tax liability if it takes the foreign tax credit will be $204,000
True or False? Modern companies deal with many different suppliers in order to avoid problems that can arise when one supplier is unable to provide needed parts or materials.
Answer:
True
Explanation:
The statement modern companies deal with many different suppliers in order to avoid problems that can arise when one supplier is unable to provide needed parts or materials is true because businesses try to maintain different suppliers for a specific good to be able to react quickly and have the material available if one of the suppliers have a problem to provide itl. For example, on key materials some companies decide to buy most of the material to the supplier that offers the best value in terms of price and quality but they decide to buy a small percentage from another supplier to guarantee that they will always have the material available in case the main supplier is not able to provide the good and they can cover the immediate need with the other one.
You have $1,000 to invest over an investment horizon of three years. The bond market offers various options. You can buy (i) a sequence of three one-year bonds; (ii) a three-year bond; or (iii) a two-year bond followed by a one-year bond. The current yield curve tells you that the one-year, two-year, and three-year yields to maturity are 3.5 percent, 4.0 percent, and 4.5 percent respectively. You expect that one-year interest rates will be 4 percent next year and 5 percent the year after that. Assuming annual compounding, compute the return on each of the three investments.
a. Expected return for (i)
b. Expected return for (ii)
c. Expected return for (iii)
Answer:
a) 13.02%
b) 14.12%
c) 13.57%
Explanation:
Given:
Yield to maturity for:
One year = 3.5%
Two year = 4.0%
Three year = 4.5%
Required:
Compute the return on investments
One year interest rate = 4%
Next year (2nd year) interest rate = 5%
a) For sequence of three one-year bonds:
1000 x (1+3.5%)(1+4%)(1+5%)
=1000 x 1.13022
= $1,130.25
Return =(1130.22/1000)-1 = 0.13022 = 13.02%
b) For a three-year bond; or
1000 x (1+4.5%)³
=1000 x 1.141166125
= $1,141.166
Return = (1,141.166/1000)-1 = 14.12%
c) For two-year bond followed by a one-year bond.
1000 x (1+4.0%)² (1+5%)
= 1000 x 1.13568
=$1,135.68
Return =(1135.68/1000)-1 = 13.568%
Accurate Builders construction company was incorporated by John Davis. Assume the following activities occurred during the year: Received from three investors $60,000 cash and land valued at $35,000; each investor was issued 1,000 shares of common stock with a par value of $0.10 per share. Purchased construction equipment for use in the business at a cost of $36,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months). Lent $2,500 to one of the investors, who signed a note due in six months. John Davis purchased a truck for personal use; paid $5,000 down and signed a one-year note for $22,000. Paid $12,000 on the note for the construction equipment in (b) (ignore interest).
Required:
1. For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts.
2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation:
3. Compute the market value per share of the stock.
Answer:
1. For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts.
The truck purchased for personal use is not part of the corporation's assets, therefore it should not be included. The rest of the T accounts are:
Cash Common stock
Debit Credit Debit Credit
60000 300
9000
2500
12000
36500
APIC - Common stock Land
Debit Credit Debit Credit
94700 35000
Equipment Notes payable
Debit Credit Debit Credit
36000 27000
12000
15000
Notes receivable
Debit Credit
2500
2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation:
assets = liabilities + equity
cash $36,500
c.s. $500
a.p.i.c. $94,700
land $35,000
equip. $36,000
notes p. $15,000
notes r. $2,500
assets = liabilities + equity
$110,000 = $15,000 + $95,000
3. Compute the market value per share of the stock.
Since the company doesn't have any revenues yet, we can only calculate the book value of the stocks = equity / total shares outstanding = $95,000 / 3,000 stocks = $31.67
Gustavson Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Administrative and Facilities, and two operating departments, Assembly and Wholesaling. Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied. The total Wholesaling Department cost after the allocations of service department costs is closest to which value:
a. $337,530b. $331,090c. $340,240d. $340,426
Answer:
C) $340,240
Explanation:
Service Department Operating Department
Administrative Facilities Assembly Wholesaling
Departmental costs $26,840 $59,400 $183,430 $321,190
Employee time (hours) 4,000 2,000 29,000 15,000
Space occupied - sq ft 2,000 2,000 30,000 6,000
total administrative costs = $26,840
total employee hours = 29,000 + 15,000 = 44,000
administrative cost per employee hour = $26,840 / 44,000 = $0.61
total facilities costs = $59,400
total square feet = 30,000 + 6,000 = 36,000
administrative cost per employee hour = $59,400 / 36,000 = $1.65
total Wholesaling Department cost = $321,190 + ($0.61 x 15,000) + ($1.65 x 6,000) = $321,190 + $9,150 + $9,900 = $340,240
The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Use this information to answer the question that follow. Assets Cash and short-term investments $38,612 Accounts receivable (net) 27,852 Inventory 27,691 Property, plant, and equipment 265,063 Total assets $359,218 Liabilities and Stockholders' Equity Current liabilities $67,177 Long-term liabilities 88,562 Stockholders' equity—Common 203,479 Total liabilities and stockholders' equity $359,218 Income Statement Net Sales $88,992 Cost of goods sold (35,597) Gross margin 53,395 Operating expenses (27,302) Interest expense (4,450) Net income $21,643 Number of shares of common stock outstanding 6,044 Market price of common stock $35 Total dividends paid $8,900 Cash provided by operations $38,612 Using the data provided for Diane Company, what is the return on total assets? a.8.5% b.9.5% c.7.3% d.7.0%
Answer:
The Return on total assets is 7.3%. The right answer is c
Explanation:
In order to calculate the the return on total assets we would have to calculate the following formula:
Return on total assets = Earnings before interest and taxes / Average total assets
Earnings before interest and taxes=Net income + Interest expense
Net income=$21,643
Interest expense=$4,450
Average total assets =$359,218
Return on total assets= ($21,643 + $4,450) / $359,218
Return on total assets=0.0726=7.3%
The Return on total assets is 7.3%
Harris, Inc. incurred the following transactions during the month of February. Record the appropriate ones in the cash payments journal. Include posting references. A. On February 3, the company purchased $650 worth of supplies on account. The supplies account number is 15. B. On February 5, Harris, Inc. made a payment on account to Sanders Industries in the amount of $1,215 (Check No. 2214). C. On February 14, Harris, Inc. bought a one-year insurance policy for $1,500. The prepaid insurance account number is 14 (Check No. 2215). D. On February 22, Harris, Inc. paid monthly rent of $2,000. The rent expense account number is 63 (Check No. 2216). E. On February 26, Harris, Inc. purchased equipment making a down payment of $3,000 (Check No. 2217) and agreeing to pay the $4,000 balance in 30 days. The equipment account number is 18. If an amount box does not require an entry, leave it blank.Date Account CK. No. Post. Other Accounts CashDebited Ref. Accounts DR. Payable DR. CR.1 ✓ 12 23 34 4
Answer: The answer has been attached below
Explanation:
A journal entry is the act of making records of any transactions. The transactions are listed in a way that shows the company's debit and credit balances.
It should be noted that:
February 3, the journal entry was recorded in supplies account debit ($650) and the account payable credit ($650).
February 26, the journal entry was recorded in equipment account debit was ($3000 + $4000) and the cash account credit ($3000) and the account payable credit ($4000).
Further entries has been recorded in the attached document.
Harris, Inc. records the following transactions in its cash payments journal for the month of February.
Cash Payments Journal
Date Account CK. No. Ref. No. Debit Credit
February 3: Supplies 15 $650
Accounts Payable $650
To record the purchase of supplies on account.February 5: Accounts Payable $1,215
Cash Check No. 2214 $1,215
To record the payment on account to Sanders Industries.February 14: Prepaid Insurance 14 $1,500
Cash Check No. 2215 $1,500
To record the prepayment of insurance for a year.February 22: Rent Expense 63 $2,000
Cash Check No. 2216 $2,000
To record the payment of rent for the month.February 26: Equipment 18 $7,000
Cash Check No. 2217 $3,000
Accounts Payable $4,000
To record the purchase of equipment for cash and on account.Data Analysis:
A. February 3: 15 Supplies $650 Accounts Payable $650
B. February 5: Accounts Payable $1,215 Cash $1,215 Check No. 2214
C. February 14: 14 Prepaid Insurance $1,500 Cash $1,500 Check No. 2215
D. February 22: 63 Rent Expense $2,000 Cash $2,000 Check No. 2216
E. February 26: 18 Equipment $7,000 Cash $3,000 Accounts Payable $4,000 Check No. 2217
Learn more: https://brainly.com/question/23794037
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.6 percent indefinitely. The company just paid a dividend of $3.71 and you feel that the required return on the stock is 12 percent. What is the price per share of the company's stock?
Answer:
$45.76
Explanation:
Next dividend = Dividend just paid * (1 + Dividend growth rate) = $3.71 * (1 + 0.036) = $3.84356
Using the formula for the dividend discount model, we can calculate he price per share of the company's stock as follows:
Stock price = Next dividend / (Required return - Dividend growth rate) = $3.84356 / (0.12 - 0.036) = $45.76
Therefore, the price per share of the company's stock is $45.76.
A senior MIS design class project team has developed the following schedule of activities for their project, using their best estimate of completion times. Both written and oral reports are required. Draw the project network. Find the Critical Path.
Activity Time Immediate PredecessorA. Find client 4 ---B. Write prospectus 2 A C. Obtain approval from client 3 B and professorD. Complete programming 12 CE. Do industry background research 10 ---
F. Write final paper 6 D, EG. Write oral report 5 D, E
Answer:
see below for the network
ABCDF is the critical path
Explanation:
The critical path is the longest path from start to finish. Here, it is ...
A-B-C-D-F . . . critical path
The total time required is 4+2+3+12+6 = 27 time units. In order to accomplish the project in that time, the team must be capable of executing task E in parallel with some parts of A, B, C, and D; and it must be capable of executing task G in parallel with task F.
Assume a firm is a monopoly and enjoys $10 million profits per year. The firm lobbies to have a moratorium passed by Congress on new firms in its market for the next 25 years. If there is no discount rate, how much would the firm be willing to pay to deter entry? A. $250 million. B. $100 million. C. $250 billion. D. $25 million.
Answer: A. $250 million
Explanation:
The firm is a Monopoly and is lobbying Congress to remain that way. As a monopoly it makes $10 million a year and wants to remain a monopoly for the next 25 years.
Assuming there is no discount rate which means that the value of money stays the same over the 25 years, if they succeed in Congress, they have a chance to make a total profit of,
= 10 million * 25 years
= $250 million
If the maximum amount the firm can make if the lobbying is successful is $250 million, this is the maximum they will pay to lobby for a deterrence to entry. If they pay any amount more than $250 million, they will be making a loss and therefore it would make no sense to spend that amount of the lobbying.
El Niño wind patterns affected the weather across the United States during the winter of 1997–1998. Suppose the demand for home heating oil in Connecticut is given by Q = 20 – 2 Phho + 0.5 Png – TEMP, where Q is the quantity of home heating oil demanded, Phho is the price of home heating oil per unit, Png is the price of natural gas per unit, and TEMP is the absolute difference between the average winter temperature over the past 10 years and the current average winter temperature. If the current price of home heating oil is $1.20, the current price of natural gas is $2.00, and the average winter temperature this year is 40 degrees compared to 28 degrees over the past 10 years, the price elasticity of demand for home heating oil is:
Answer:
The price elasticity of demand for home heating oil is-0.36
Explanation:
In order to calculate the price elasticity of demand for home heating oil we would have to use the following formula:
Elasticity of demand = (dQ/dPhho)*(P/Q)
According to the given data we have the following:
demand for home heating oil in Connecticut=Q = 20 – 2 Phho + 0.5 Png – TEMP
current price of home heating oil=$1.20
current price of natural gas =$2.0
Therefore, if Q = 20 – 2 Phho + 0.5 Png – TEMP, then:
Q=20 – 2*1.2 + .5*2 – 12
Q=6.6
Therefore, price elasticity of demand = (-2)*(1.2/6.6)
price elasticity of demand =-0.36
The price elasticity of demand for home heating oil is-0.36
Suppose the following transactions occur during the current year:
1. Rajiv orders 40 cases of beer from a Dutch distributor at a price of $40 per case.
2. A U.S. company sells 200 transistors to a Spanish company at $15.00 per transistor.
3. Yakov, a U.S. citizen, pays $1,100 for a computer he orders from Dellosoft (a U.S. company).
Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year.
Amount
Consumption
Investment
Government Purchases
Imports
Exports
Net Exports
Gross Domestic Product (GDP)
Answer:
Consumption - $2,700
Investment - $0
Government Purchases - $0
Imports - $1,600
Exports - $3,00
Net Exports - $1,400
Gross Domestic Product (GDP) - $4,100
Explanation:
1. Consumption.
Consumption is the amount of goods and services consumed in the economy in a given period by citizens themselves. Things such as beer and laptops fall under here.
The consumption for the above economy are the computer purchased as well as the beer.
Adding them up would be,
= 1,100 + (40* 40)
= 1,100 + 1,600
= $2,700
Consumption is $2,700
Investment refers to the amount of money that private citizens spend on either investments or on Capital projects such as buildings. There are none here so the answer is $0.
Government Purchases are straightforwardly the transactions that involved the Government paying for goods and services. There are no such transactions here either so the answer is $0.
Imports are goods and services purchased from a foreign company by a consumer in the local Economy. From the above scenario there is a purchase from a Dutch Distributor. This is an import.
Imports are therefore,
= $40 * 40 cases of beer.
= $1,600.
Exports are goods and services that are bought by a foreign company from the local Economy. From the above there is an Export of 200 transistors to Spain.
That means that the exports in the Economy total,
= 200 * $15
= $3,000
The Net Exports are calculated by Subtracting Imports from Exports.
= 3,000 - 1,600
= $1,400
The Gross Domestic Product is a very important Economic measure that calculates the amount of goods and services produced in an Economy within a given period which is usually a year. The goods must be finished goods as intermediate goods would results in an overestimation due to Double Counting.
The formula for the GDP calculation is,
= C + G + I + X - M
Where,
C is Consumption
G is Government Spending
I is Investment and
X - M is Net Imports
GDP = 2,700 + 0 + 0 + 1,400
GDP = $4,100
Suppose that Karen deposits $500 into her checking account at the bank. The reserve requirement for Karen's bank is 12%. Assume the bank does not want to hold any excess reserves of new deposits.A. Use this information to complete the table below to show how the bank's assets and liabilities change when Karen deposits the $500.Assets LiabilitiesChange in reserves: Change in deposits:Change in loans: B. Why are deposits considered liabilities for a bank?a) Deposits must be kept as reserves at the Federal Reserve.b) Deposits can be withdrawn at any time.c) Deposits can be loaned out by the bank.d) Deposits pay interest to the owner.
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
a.)
Assets Amount($) Liabilities Amount($)
Change in reserves ($500 ×12%) 60 Change in deposits 500
Change in loans ($500 - $60) 440
B) Customers can withdraw the amount of the money at any time from the bank whenever they have a need for money and at that time this is the liability of the bank to pay that amount to the customer which he wants from their savings. This is the reason that deposits are considered as liabilities for the bank. So option (b) is correct.
The balanced scorecard measures financial and nonfinancial performance of a business. The balanced scorecard measured four areas. Identify one of the following that is not included as a performance measurement.
1. Internal Process
2. Employees
3. Innovation and learning
4. Financial
Answer:
2. Employees
Explanation:
The balanced scorecard is a standard used by managers in organizations to account for the progress made in the running of the business. Just like a driver would need indicators to explain the progress made in his journey, managers also use key indicators to monitor the progress made by the company. The four key indicators employed by managers are;
1. Internal Process
2. Customer Perspective
3. Innovation and learning
4. Financial perspective.
The financial perspective is very important to the managers, and the other three indicators have a telling effect on the level of financial progress made by the organization.
A buyer submitted an offer with a deposit on a property on June 1. The offer included the condition that it must be accepted within 48 hours. The sellers were out of town, however, and could not be contacted until June 6. At that point, the sellers eagerly signed and returned the purchase agreement; but now the buyer says he does not want the property any longer and is demanding the return of his deposit. A court would rule that:
Answer:
a. the deposit should be returned to the buyer
Explanation:
Based on the information that has been provided it can be said that the court would most likely rule that the deposit should be returned to the buyer . This is because is the contract includes a deadline and it passes, the offer is automatically terminated. Therefore, since this is the case in this situation the sellers' acceptance after the deadline would not be considered valid, and the buyer's deposit needs to be returned.
Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Wayne Rogers Corp. requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2013, 2014, and 2015.
2013 2014 2015
Cash receipts from sales:
On 2013 sales 293,430 166,990 39,820
On 2014 sales 361,040 94,750
On 2015 sales 409,660
Cash payments for expenses:
On 2013 expenses 191,910 68,8703 4,880
On 2014 expenses 45,320 a176,560 55,130
On 2015 expenses 47,250 b222,210
a) Prepayments of 2014 expenses.
b) Prepayments of 2015 expenses.
Answer:
Kindly check attached picture
Explanation:
Given the following :
2013 2014 2015
Cash receipts from sales:
On 2013 sales 293,430 166,990 39,820
On 2014 sales 361,040 94,750
On 2015 sales 409,660
Cash payments for expenses:
On 2013 expenses 191,910 68,8703 4,880
On 2014 expenses 45,320 a176,560 55,130
On 2015 expenses 47,250 b222,210
Kindly check attached picture for detailed explanation
Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows. Journalize the transactions. If no entry is required, select "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. Jan. 8. Split the common stock 2 for 1 and reduced the par from $100 to $50 per share. After the split, there were 300,000 common shares outstanding. Jan. 8 Apr. 30. Declared semiannual dividends of $0.60 per share on 16,000 shares of preferred stock and $0.22 per share on the common stock payable on July 1. Apr. 30 July 1. Paid the cash dividends. July 1 Oct. 31. Declared semiannual dividends of $0.60 per share on the preferred stock and $0.11 per share on the common stock (before the stock dividend). In addition, a 5% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $56. Oct. 31 Oct. 31 Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend. Dec. 31 Dec. 31
Answer:
Canyon Ferry Boating Corporation
Journal Entries:
Debit Credit
Jan. 8: Stock Split
Jan. 8: Dividends: Preferred $9,600
Dividends: Common Stock $66,000
Dividends Payable $75,600
To record semiannual dividends declared.
July 1: Dividends Payable $75,600
Cash Account $75,600
To record the payment of the cash dividends.
Oct. 31: Dividends: Preferred $9,600
Dividends: Common Stock $33,000
Dividends Payable $42,600
To record semiannual dividends declared.
Oct. 31: Dividends: Common Stock $750,000
Dividends Payable $750,000
To record 5% dividend declared on the common stock.
Dec. 31: Dividends Payable $42,600
Cash Account $42,600
To record the payment of the cash dividends.
Dec. 31: Dividends Payable $750,000
Common Stock $750,000
To record the issue of certificates for the common stock dividend.
Explanation:
a) A decision by a company's board of directors to increase the number of outstanding shares through the issue of more shares to current shareholders is called a stock split. The purpose is to lower the market price of stock to a comfortable range for most investors, thereby increasing the liquidity of the shares. For example, in a 2-for-1 stock split, an additional share is given for each share held by a shareholder. The decision usually lowers the stock price and increases the number of shares by the same ratio, it does not necessitate for accounting records.
b) A stock dividend is payment to shareholders in the form of additional shares in the company, rather than as cash. There is no taxation on stock dividends until the shares granted are sold by their owners.
Journalize the transactions. If no entry is required, select "No Entry Required" and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 8. Split the common stock 2 for 1 and reduced the par from $80 to $40 per share. After the split, there were 150,000 common shares outstanding. Jan. 8 Apr. 30. Declared semiannual dividends of $0.75 on 18,000 shares of preferred stock and $0.28 on the common stock payable on July 1. Apr. 30 July 1. Paid the cash dividends. July 1 Oct. 31. Declared semiannual dividends of $0.75 on the preferred stock and $0.14 on the common stock (before the stock dividend). In addition, a 5% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $52. Cash dividends Stock dividends Dec. 31. Paid the cash dividends and issued the certificates for the common stock dividend. Payment Issuance
Answer:
Journal Entries:
Jan 8: Stock split
Jan 8:
Debit Dividends: Preferred $13,500
Debit Dividends: Common Stock $42,000
Credit Dividends Payable $55,500
To record semiannual dividends declared.
July 1:
Debit Dividends Payable $55,500
Credit Cash Account $55,500
To record payment of cash dividends.
Oct. 31:
Debit Dividends: Preferred $13,500
Debit Dividends: Common Stock $21,000
Credit Dividends Payable $34,500
To record semiannual dividends declared.
Oct, 31:
Debit Dividends: Common Stock $300,000
Credit Dividends Payable $300,000
To record 5% stock dividend on common stock.
Dec. 31:
Debit Dividends Payable $34,500
Credit Cash Account $34,500
To record cash dividends paid.
Dec. 31:
Debit Dividends Payable $300,000
Credit Common Stock $300,000
To record the issue of certificates for the common stock dividend.
Explanation:
a) Stock split is a decision to increase the number of outstanding shares and reduce the market price of shares by the same ratio. It makes the shares attractive to most investors. The transaction does not have any financial effect, since the number of shares are increased and the share price is reduced by the same amount.
b) Stock dividend is payment to stockholders in the form of stock and not cash. It involves the issue of additional share certificate to outstanding stockholders as a compensation. The dividend is not usually subject to tax at the time of issue until the shares are sold.
Which of the following selections use business appropriate language? A. GR8 news. The hag in marketing got fired. B. We are going to take action in response to recent market fluctuations. C. Hi, yeah, why don’t you start the PD stuff we talked about. D. Janice, please implement the performance measure we discussed last week.
Answer:
B. We are going to take action in response to recent market fluctuations.
D. Janice, please implement the performance measure we discussed last week.
Explanation:
The two statements above use appropriate business language because the language used is formal (although not too formal which can also be negative in a business context because it could reduce clarity), and also because the words used are part of the common business jargon.
The other two statements are inappropriate. A) is inappropriate because it uses profanity, and C) is inappropriate because the language used is too informal.
Akwamba made this statement organizations cannot be successful if mnagers fail to pay attention to the forces in the external environments.do you agree or not . Justify using practical examples
Answer: I agree
Explanation:
Failing to pay attention makes the organization unsuccessful
An example is when an organization who uses technology and other competitors upgrade theirs.
This is a force, that is a technological force other example can be seen in economical social political
When one fails to show his or her people what he or she has achieve during his or her tenure. It can be a chance for his or her opponent
Markup on job cost 75%
Department
Milling Assembly
Machine-hours 60,000 3,000
Direct labor-hours 8,000 80,000
Total fixed manufact$ 390,000 $500,000
uring overhead cost
Variable manufacturing overhead per machine-hour $2.00
Variable manufacturing overhead per direct labor-hour $3.75
Cost summary for Job 407 Department
Milling Assembly
Machine-hours 90 4
Direct labor-hours 5 20
Direct materials $800 $370
Direct labor cost $70 $280
Enter a formula into each of the cells marked with a ? below
Step 1: Calculate the estimated total manufacturing overhead cost for each department
Step 2: Calculate the predetermined overhead rate in each department
Step 3: Calculate the amount of overhead applied from both departments to Job 407
Step 4: Calculate the total job cost for Job 407
Total cost of Job 407
Step 5: Calculate the selling price for Job 407
Answer:
Instructions are below.
Explanation:
Giving the following information:
Markup on job cost 75%
Milling Assembly
Machine-hours 60,000 3,000
Direct labor-hours 8,000 80,000
Total fixed manufacturing overhead cost $ 390,000 $500,000
Variable manufacturing overhead per machine-hour $2.00
Variable manufacturing overhead per direct labor-hour $3.75
Job 407:
Milling Assembly
Machine-hours 90 4
Direct labor-hours 5 20
Direct materials $800 $370
Direct labor cost $70 $280
1) We need to calculate the total overhead costs:
Milling= 390,000 + 2*60,000 + 3.75*8,000= $540,000
Assembly= 500,000 + 2*3,000 + 3.75*80,000= $806,000
2) Now, the predetermined overhead rate per department:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
For Milling we will use machine hours as allocation base:
Milling= 540,000/60,000= $9 per machine hour
For Assembly, we will use direct labor hours:
Assembly= 806,000/80,000= $10.075 per direct labor hour
3) We need to allocate overhead to Job 407
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Milling= 9*90= $810
Assembly= 10.075*20= $201.5
Total overhead= $1,011.5
4) Total cost= (800 + 370) + (70 + 280) + 1,011.5
Total cost= $2,531.5
5) Finally, the selling price:
Selling price= 2,531.5*1.75= $4,430.125
Another firm, called Robbem Power & Water, an established public utility company, has been paying dividends for the past 20 years. This year Robbem also announced that it will increase its dividends by 10%. Which class of investors is more likely to be pleased by Robbem’s dividend announcement?
a. Investors with low tax rates who depend on current dividernd income for Iiving expenses.
b. Investors with high tax rates who don't depend on current dividend income for living expenses
Answer:
sorry...too Difficult
Loggers are much ________ likely to supply wood to the market if property rights are not enforced.
In the presence of market failures, public policy can improve economic efficiency.
Classify the source of market failure in each case listed.
Market Failure Market Power Externality
A single grocery store is the only source of food in a small town, giving the store the ability to influence the price of food.
A manufacturing plant dumps chemical waste into a nearby river, poisoning the water supply for a small town downstream.
Answer:
They are much more likely
Explanation:
Answer:
Loggers are much MORE likely to supply wood to the market if property rights are not enforced.
Explanation: