Answer:
Dr Cash$561,360
Dr Finance charge expense $8,640
Cr Finance arrangement $570,000
Explanation:
Preparation of the journal entry to record the borrowing on the books of High Five Surfboard.
Dr Cash$561,360
[$570,000-($720,000*1.2%)]
$570,000-$8,640
=$561,360
Dr Finance charge expense $8,640
($720,000*1.2%)
Cr Finance arrangement $570,000
(Being to record the borrowing on the books of High Five Surfboard )
Jordan is considering three choices of spending the new year's eve. Option A is to dine outside at a luxury restaurant; option B is indoor skydiving, and option C is to play video games at a close-by club. If all three options cost the same, explicitly, what can be the economic reason for Jordan choosing option B
Answer: b. Jordan values option B more than options A and C.
Explanation:
All options cost the same explicitly which means that Jordan's choice was made based on implicit/ opportunity cost factors.
These undisclosed factors led to Jordan valuing option B more than the other options which is why it was picked even thought they all cost the same. Had any other option being more valuable than B, it would have been picked but since B was picked, B was the most valuable.
An incomplete cost of goods manufactured schedule is presented below. Complete the cost of goods manufactured schedule for Hobbit Company.
HOBBIT COMPANY Cost of Goods Manufactured Schedule For the Year Ended December 31, 2020
Work in process (1/1) $219,610
Direct materials
Raw materials inventory (1/1) $51240
Add: Raw materials purchases 160,200
Total raw materials available for use 211440
Less: Raw materials inventory (12/31) 29,310
Direct materials used $182,130
Direct labor
Manufacturing overhead Indirect labor 26,980
Factory depreciation 45,020
Factory utilities 72,870
Total overhead 144,870
Total manufacturing costs 327000
Total cost of work in process 631170
Less: Work in process (12/31) 84,330
Cost of goods manufactured $546,840
Answer:
Hobbit Company
Cost of goods manufactured schedule
Work in process (1/1) $219,610
Direct materials
Raw materials inventory (1/1) $51240
Add: Raw materials purchases $160,200
Total raw materials available for use $211440
Less: Raw materials inventory (12/31) ($29,310)
Direct materials used $182,130
Direct labor $304,170
Manufacturing overhead Indirect labor $26,980
Factory depreciation $45,020
Factory utilities $72,870
Total overhead $144,870
Total manufacturing costs $327,000
Total cost of work in process $631,170
Less: Work in process (12/31) $84,330
Cost of goods manufactured $546,840
Explanation:
The cost of goods manufactured schedule is a report consisting of manufacturing costs incurred during the production period.
Direct Labor = Total cost of work in process - Total manufacturing costs
= $631,170 - $327,000
= $304,170
g On January 2, 2019, Shank Co. issued at par $300,000 of 9% convertible bonds. Each $1,000 bond is convertible into 60 shares. No bonds were converted during 2019. Shank had 100,000 shares of common stock outstanding during 2019. Shank 's 2019 net income was $340,000 and the income tax rate was 30%. Shank's diluted earnings per share for 2019 would be (rounded to the nearest penny) Group of answer choices $3.04. $2.19. $3.26. $3.40. $2.29
Answer:
$1.89.
Explanation:
diluted earnings per share = earnings attributable to common stockholder ÷ weighted average number of common stock holders
= $340,000 ÷ (100,000 + 18,000)
= $1.89
Shank's diluted earnings per share for 2019 would be $1.89.
Larkspur, Inc. uses a perpetual inventory system. Data for product E2-D2 include the purchases shown below.Date Numer of Units Unit priceMay 7 46 $10July 28 36 15On June 1, Larkspur, Inc. sold 23 units, and on August 27, 36 more units. Calculate the average cost of the goods sold in the sale. (Round answers to 3 decimal places, e.g. 5.125.)
Answer:
Following are the solution to this question:
Explanation:
Calculating the cost of the product sold:
FIFO:
June 1: 23 units costing of [tex]\$ 10[/tex] each [tex]= \$ 230[/tex]
Aug 27: 23 units costing of [tex]\$ 10[/tex] each [tex]= 230[/tex]
13 units costing of [tex]\$ 15[/tex] each [tex]= 195[/tex]
[tex]\$425[/tex]
Total cost of product sold[tex]= \$655[/tex]
LIFO:
June 1: 23 units costing of [tex]\$ 10[/tex] each [tex]= \$ 230[/tex]
Aug 27: 36 units costing of [tex]\$15[/tex] each = 540
Total cost of product sold [tex]= \$ 770[/tex]
Average cost:
June 1: 23 units costing of [tex]\$ 10[/tex] each [tex]= \$ 230[/tex]
Aug 27: 36 units costing of [tex]\$13.051[/tex] each [tex]= \$469.836[/tex]
Total cost of product sold [tex]= \$699.836[/tex]
Early in 2018, Robbinsville Press was organized with authorization to issue 100,000 shares of $100 par value preferred stock and 500,000 shares of $1 par value common stock. Ten thousand shares of the preferred stock were issued at par, and 170,000 shares of common stock were sold for $15 per share. The preferred stock pays an 8 percent cumulative dividend. During the first four years of operations (2018 through 2021), the corporation earned a total of $1,385,000 and paid dividends of 75 cents per share in each year on its outstanding common stock. Required: a. Prepare the stockholders' equity section of the balance sheet at December 31, 2021. b. Are there any dividends in arrears on the company's preferred stock at December 31, 2021
Answer:
Part a
The stockholders' equity section of the balance sheet at December 31, 2021.
Preferred Stock 10,0000 at $100
Common Stock 170,000 at $1
Paid in excess 170,000 at $14
Part b
Dividends in arrears on the company's preferred stock at December 31, 2021
Explanation:
Only issued Share Capital is presented in the stockholders' equity section of the balance sheet.
Beginning three months from now, you want to be able to withdraw $4,200 each quarter from your bank account to cover college expenses over the next four years. If the account pays .82 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years
Answer:
$49,709.34
Explanation:
Payments of fixed amount for a certain period of time is known as an Annuity.
Step 1 : We need to calculate the Net Present Value of the Annuity
Using a financial calculator the following data will need to be captured.
PMT = $4,200
P/Yr = 4
N = 4 x 4 = 12
I = 0.82 %
FV = $ 0
PV = ?
Therefore, the Net Present Value of the Annuity is $49,734.80
Step 2 : Then we calculate the Present Value (Value today of this Annuity)
Since you need to have $49,734.80 in 3 months.
Then, today you require :
FV = $49,734.80
I = 0.82 %
P/Yr = 4
N = 0.25
PMT = $0
PV = ?
therefore, today you require $49,709.34
Conclusion
We are discounting the payments in both stages by the rate of 0.83 % .Therefore, you need to have in your bank account $49,709.34 today to meet your expense needs over the next four years.
In March 2010, Hertz Pain Relievers bought a massage machine that provided a return of 8 percent. It was financed by debt costing 7 percent. In August, Mr. Hertz came up with a heating compound that would have a return of 14 percent. The chief financial officer, Mr. Smith, told him it was impractical because it would require the issuance of common stock at a cost of 16 percent to finance the pur-chase. Is the company following a logical approach to using its cost of capital?
Answer: No they are not
Explanation:
When using the Cost of Capital approach, it is best that the company use the Weighted Average Cost of Capital(WACC). This would require considering the various capital sources available to the company and their cost instead of the cost of one capital source.
This is because, the availability of various sources of capital are sometimes contingent on others and this is the underlying principle of WACC. When the cost of this equity to be issued and other sources of capital are weighted, the heating compound might then give a better return than the cost.
Which of the following is not a feature of parliamentary democracy?
Aziz Industries has sales of $100,000 and accounts receivable of $11,500, and it gives its customers 30 days to pay. The industry average DSO is 27 days, based on a 365-day year. If the company can change its credit and collection policy sufficiently to cause its DSO to fall to the industry average (without decreasing sales) and if it earns 8.0% on any cash freed-up by this change, how would that affect its net income, assuming other things are held constant
Answer:
The effect of this is to add $328.22 to the net income.
Explanation:
The Days Sales Outstanding (DSO) can be calculated using the following formula:
DSO = (Accounts Receivable / Credit Sales) * 365 ................ (1)
This can now be determined using the following 4 steps:
Step 1: Calculation of Aziz Industries' current DSO (DSOa)
Using equation (1), we substitute the relevant values and solve as follows:
DSOa = (11,500 / 100,000) * 365
DSOa = 41.98 Days
Step 2: Calculation of the amount Accounts Receivable needs to be lowered to so that DSO will be 27 days
By this, we have:
y = the amount that the Accounts Receivable needs to be lowered to = Accounts receivable = ?
Sales = $100,000
DSO = industry average DSO = 27 days
Substitute the relevant values into equation (1) and solve y, we have:
27 = (y / 100,000) * 365
27 / 365 = y / 100,000
0.073972602739726 = y / 100,000
y = 0.073972602739726 * 100,000
y = $7,397.26
Step 3: Calculation of decrease in Accounts Receivable
Decrease in Accounts Receivable = Aziz Industries' current accounts receivable - y = $11,500 - $7,397.26 = $4,102.74
Step 4: Calculation of addition to net income which is the same as the interest earned
Addition to net income = Decrease in Accounts Receivable * Percentage earned on any cash freed-up by this change = $4,102.74 * 8% = $328.22
Therefore, the effect of this is to add $328.22 to the net income.
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of coffee, one donut, and one newspaper. In year one, the basket costs $8.00. In year two, the price of the same basket is $7.00. From year one to year two, there is (Deflaton,Inflation) at an annual rate of _____%. In year one, $40.00 will buy ________ baskets, and in year two, $40.00 will buy ________ baskets. This example illustrates that, as the price level falls, the value of money:_________
Answer:
From year one to year two, there is (Deflation,Inflation) at an annual rate of _12.5____%. In year one, $40.00 will buy ____5____ baskets, and in year two, $40.00 will buy ___5.7 (6)____ baskets. This example illustrates that, as the price level falls, the value of money:_increases___
Explanation:
a) Data and Calculations:
The price of a basket of goods in year one = $8.00
The price of the same basket of goods in year two = $7.00
Difference in price (reduction in price) = $1 ($8 - $7)
Percentage reduction in price = $1/$8 * 100 = 12.5%
With $40/8, 5 baskets were bought
With $40/7, 5.7 baskets will be bought
b) Economists are always wary of prolonged deflation or continuous general falling prices of goods because it depicts an economy that is seriously weakening at its foundation. As a fallout, companies slow production, reduce output, lay off workers, and reduce salaries (earned income).
The comparative balance sheets for Kingbird Corporation appear below:
KINGBIRD CORPORATION Comparative Balance Sheet
Assets 2022 2021
Cash $35,400 $33,600
Accounts receivable (net) 88,000 64,500
Prepaid insurance 29,300 19,200
Land 20,500 49,000
Equipment 81,500 69,500
Accumulated depreciation (15,800 ) (13,000 )
Total assets $238,900 $222,800
Liabilities and Stockholder's Equity Accounts payable $24,500 $8,100
Bonds payable 25,400 16,200
Common stock 148,000 120,000
Retained earnings 41,000 78,500
Total liabilities and stockholder's equity $238,900 $222,800
Additional information:
1. Net loss for 2022 is $13,000. Net sales for 2022 are $290,000.
2. Cash dividends of $24.800 were declared and paid in 2022.
3. Land was sold for cash at a loss of $3,500. This was the only land transaction during the year.
4. Equipment with a cost of $17,800 and accumulated depreciation of $10,900 was sold for $6,900 cash.
5. $12.900 of bonds were retired during the year at carrying (book) value.
6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $33,000.
Required:
Prepare a statement of cash flows for the year ended December 31, 2022 using the indirect method.
Suppose that a candy maker owns a building and is renting part of the building's space to a library. Further suppose that because the candy maker is the owner, he has the right to make noise during the day while he makes candy. While the library cannot insist on a quiet environment, it could move to a quieter building. However, rent in the next best building is $300/month more than rent in the noisy building. The candy maker can adopt a new technology that eliminates the noise for $225/month. Given this situation, can the library find a private solution with the candy maker that will make both better off
Answer:
The best option is to opt for the new technology which eliminates noise for $225/month.
Explanation:
The candy maker will go for the cheapest available solution for the noise. The new space rent for the library is $300 while the new equipment that eliminates the noise is $225. The best option is the one which lowest cost. The candy maker should opt to buy the new equipment.
can I have free account please
Answer:
what kind of account?
i will give you don't worry
The Work-in-Process inventory account of a manufacturing firm shows a balance of $3,250 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $510 and $310 for materials, and charges of $410 and $670 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of:
Answer:
$1.25
Explanation:
With regards to the above and given that;
Direct material = $510 310
Direct labor = $410 $670
Manufacturing overhead?
Work in process = Direct material + Direct labor + manufacturing overhead
$3,250 = $820 + $1,080 + MOH
$3,250 - $1,900 = MOH
MOH = $1,350
Overhead rate = MOH/Direct labor hour
= $1,350/1080
= $1.25
For the following purchasing and sales transactions, prepare the appropriate journal entry assuming a perpetual inventory system is in place.
1. On January 1, Cougar Corp. purchased inventory from a supplier for $6,500. The credit terms on the transaction are 1/10, net 30.
2. On January 2, Cougar Corp. paid a shipping company $110 for freight associated with the January 1 purchase.
3. On January 5, Cougar Corp sold inventory with a cost of $2,600 for $3,700. The credit terms on the transaction are 2/15, net 30.
4. On January 6, Cougar Corp. returned $950 of the inventory purchased on January 1.
5. On January 7, Cougar Corp. paid $210 to ship the goods sold on January 5.
6. On January 9, Cougar Corp. paid for the purchase on January 1. (Don't forget to consider the purchase return on January 6).
7. On January 10, Cougar Corp. received payment for the sale made on January 5.
Answer:
Cougar Corp.
Journal Entries
1. Jan. 1:
Debit Inventory $6,500
Credit Accounts payable $6,500
To record the purchase of inventory on account, credit terms 1/10, net 30.
2. Jan. 2:
Debit Freight-in $110
Credit Cash $110
To record the freight for January 1 purchase.
3. Jan. 5:
Debit Accounts receivable $3,700
Credit Sales Revenue $3,700
To record the sale of goods on account, credit terms, 2/15, net 30.
Debit Cost of Goods Sold $2,600
Credit Inventory $2,600
To record the cost of goods sold.
4. Jan. 6:
Debit Accounts Payable $950
Credit Inventory $950
To record the return of goods on account.
5. Jan. 7:
Debit Freight-out $210
Credit Cash $210
To record the payment for freight for goods sold.
6. Jan. 9:
Debit Accounts Payable $5,550
Credit Cash $5,494
Credit Cash Discounts $56
To record the payment on account.
7. Jan. 10:
Debit Cash $3,626
Debit Cash Discounts $74
Credit Accounts Receivable $3,700
To record the receipt of cash on account.
Explanation:
a) Data and Analysis:
1. Jan 1: Inventory $6,500 Accounts Payable $6,500
2. Jan. 2: Freight-in $110 Cash $110
3. Jan. 5: Accounts Receivable $3,700 Sales Revenue $3,700
4. Jan.6: Accounts payable $950 Inventory $950
5. Jan. 7: Freight-out $210 Cash $210
6. Jan. 9: Accounts Payable $5,550 Cash $5,494 Cash Discounts $56
7. Jan. 10: Cash $3,626 Cash Discounts $74 Accounts Receivable $3,700
Seeing a movie at a theatre would be considered a(n)_____ want.
O unlimited
economic
O noneconomic
limited
Answer:
non-economic
Explanation:
A want or demand is a manifestation of the desire to want pt to have the item or possession of the value of that product or service. The watching of a movie in the theatre or a mall is regarded as a noneconomic as it does not possess any economic value. As wants can be limited and unlimited, theatres are for the general public and operate for non-profit.Cascade Company was started on January 1, Year 1, when it acquired $151,000 cash from the owners. During Year 1, the company earned cash revenues of $90,600 and incurred cash expenses of $62,000. The company also paid cash distributions of $13,000.
Required:
Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.)
Answer:
Cascade Company
Income statement for the year ended year 1
Sales Revenue $90,600
Less Expenses $62,000
Net Income $28,600
Cascade Company
Statement of changes in equity for the year ended year 1
Capital Retained Income Total
Beginning of the Year :
Opening Balance $151,000 $ 0 $151,000
During the Year :
Profit for the year - $28,600 $28,600
Dividends paid - ($13,000) ($13,000)
Total $151,000 $15,600 $166,600
Cascade Company
Balance Sheet as at year 1
ASSETS
Cash ($151,000 + $90,600 - $62,000 - $13,000) $166,600
Total Assets $166,600
EQUITY AND LIABILITIES
Equity $166,600
Total Equity and Liabilities $166,600
Cascade Company
Statement of Cashflow for the year ended year 1
Cash flow from Operating Activities
Cash receipts from customers $90,600
Cash payments to suppliers and employees ($62,000)
Net Cash from Operating Activities $28,600
Cash flow from Investing Activities
No Investment activities
Net Cash from Investing Activities $0
Cash flow from financing Activities
Capital Invested $151,000
Dividends Distributions ($13,000)
Net Cash from Investing Activities $138,000
Movement during the year $166,600
Beginning Cash and Cash Equivalents $0
Ending Cash and Cash Equivalents $166,600
Explanation:
The income statement, statement of changes in equity, balance sheet, and statement of cash flows for Cascade Company have been prepared above.
Note : Make sure to take note of the format and appropriate heading of each statement.
what are the proffesional values
Answer:
The values include “service, access equality, respect, confidentiality and privacy, protection of intellectual property rights, literacy, technical literacy, stewardship, and professional and social obligations”
A company with various segments (referred to as "divisions") is considering whether to drop its Orange County division. For each the costs described below, indicate whether the cost is avoidable or unavoidable by choosing the related drop-down menu item.
1. Wages paid to the Orange County division employees who work directly for this division and will be discharged if the division is dropped.
2. General administrative expenses allocated to the Orange County division on the basis of sales dollars.
3. Depreciation expense on previously purchased machinery that is used in the Orange County division; the machinery will have no other use or resale value if the division is dropped.
4. Rent paid for the building that houses only the Orange County division.
5. The amount of rent paid to lease a private jet for use by the company's management that is allocated to the Orange County division.
Answer:
1. Avoidable.
These wages are avoidable because they will stop being paid if the division is dropped.
2. Unavoidable.
These are general administrative expenses which means that they will still be incurred regardless of if the division is dropped. They are therefore unavoidable.
3. Unavoidable.
As the machine has no other use or resale value if the division is dropped, the depreciation expense will still be incurred even if the division is dropped so this cost is unavoidable.
4. Avoidable.
Company will no longer have to pay rent if the division is dropped so this expense is an avoidable cost.
5. Unavoidable.
This cost will still be incurred by the company regardless of if the division is dropped because it is an administrative cost at company level. It is therefore unavoidable.
The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currency is the Tazian dollar. Aggregate banking statistics show that collectively the banks of Tazi hold $300 million of required reserves, $75 million of excess reserves, have issued $7,500 million of deposits, and hold $225 million of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank. Refer to Scenario 29-1. Assume that banks desire to continue holding the same ratio of excess reserves to deposits. What is the reserve requirement and the reserve ratio for Tazian Banks
Answer:
Reserve requirement is the percentage of deposits that the monetary authority keeps in reserves out of deposits.
Reserve requirement = Required reserves / Total deposits
= 300 / 7,500
Reserve requirement = 4%
Reserve ratio is the percentage of reserves held by the banks.
= (Required reserves + excess reserves ) / Total deposits
= ( 300 + 75) / 7,500
Reserve ratio = 5%
The reserve requirement is the percentage of deposits held in reserves by the monetary authority. The Reserve Ratio is the number of reserves held by banks as a percentage of total assets. So, the reserve requirement is 4% and the reserve ratio is 5%.
How do you compute reserve requirements and ratios?[tex]\text{Computation of Reserve requirement (RE)}\\\text{RE = Required reserves} / \text{Total deposits}\\\text{RE} = 300 / 7,500\\\text{RE}= 4 \text{ percent}\\\text{Computation of Reserve ratios(RR)}\\\text{RR = (Required reserves + excess reserves )} / \text{Total deposits}\\\text{RR} = ( 300 + 75) / 7,500\\\text{RR} = 5\text{ percent}[/tex]
For more information about Reserve ratios, refer below- https://brainly.com/question/20732439
Revenue from gas wells that have been in production for at least 5 years tends to follow a decreasing geometric gradient. One particular rights holder received royalties of $4000 per year for years 1 through 6; however, beginning in year 7, income decreased by 15% per year each year through year 14. Calculate the future value in year 14 of the royalty income from the wells provided all of it was invested at 10% per year.
Answer:
Future value in year 14 of the royalty income is $91,603.32.
Explanation:
Note: See the attached excel for the calculation of the future value in year 14 of the royalty income from the wells.
In attached excel file, the royalties received per year from year 7 is calculated using the following formula:
Current Year Royalties Received = Previous Year Royalties Receive * (100% - Yearly Decreasing Rate) = Previous Year Royalties Receive * (100% - 15%).
From the attached excel file, future value in year 14 of the royalty income (in bold bold red color) is $91,603.32.
In order to get hired as an assembly line specialist, the applicant will have to show that they can perform their task in less than 5 minutes after 1000 tries. During the interview, the applicant was asked to perform their future job five times. The applicant was able to complete the task in 10.8 minutes and the company was to estimate their learning curve to be 90%. Given this information, how much time will the applicant take to perform the task a 1000th time
Answer:
The Applicant will take 3.78 minutes to perform the task a 1000th time.
Explanation:
The Learning curve is the graphical representation that determines that how much time someone takes to learn a special skill.
The time on the 1,000th applicant can be calculated as follow
[tex]T_{1000}[/tex] = [tex]T_{1}[/tex] x [tex]1000^{((log LCR/log2)}[/tex]
Where
[tex]T_{1}[/tex] = 10.8 minutes
LCR = Learning Curve Rate = 90% = 0.90
[tex]T_{1000}[/tex] = 10.8 minutes
Placing values in the formula
[tex]T_{1000}[/tex] = 10.8 minutes x [tex]1000^{((log 0.90/log2)}[/tex]
[tex]T_{1000}[/tex] = 10.8 minutes x [tex]1000^{(-0.152003093)}[/tex]
[tex]T_{1000}[/tex] = 10.8 minutes x 0.349937689
[tex]T_{1000}[/tex] = 3.779327044 minutes
[tex]T_{1000}[/tex] = 3.78 minutes
What suggestion does the author make about her main characters' future at
the end of the story?
A. They will spend the final years of their lives terrified, haunted by
their father's ghost.
B. They will gradually learn to take control over their own lives, but it
will be slow and difficult.
C. They will burn all their father's possessions to remove his hated
influence from their lives.
VO D. They have more freedom now that their father is dead, but they are
not strong enough to act on it.
Answer:
D
Explanation:
They have more freedom now that their father is dead, but they are
not strong enough to act on it.
ME EXPLICA O BARINLY
Answer:
what lol
Explanation:
The four primary areas of U.S. legislation dealing with human resource management concern labor relations, compensation and benefits, health and safety, and equal employment opportunity.
a. True
b. False
Answer: True
Explanation:
The statement that the four primary areas of the U.S. legislation deals with the human resource management concern labor relations, the compensation and benefits, the health and safety, and also equal employment opportunity" is true.
Employees should be managed properly and given the necessary conditions for them to thrive and succeed. The health and safety of workers is vital and should be adequately taken care of. Also, their benefits and compensation should be regularly reviewed and looked into in order to motivate workers and maximize productivity.
The following information is available for Trinkle Company for the month of June: The unadjusted balance per the bank statement on June 30 was $56,084. Deposits in transit on June 30 were $2,655. A debit memo was included with the bank statement for a service charge of $22. A $4,418 check written in June had not been paid by the bank. The bank statement included a $800 credit memo for the collection of a note. The principal of the note was $775, and the interest collected amounted to $25. Required Determine the true cash balance as of June 30. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)
Answer:
$54,321
Explanation:
Prepare a Bank Reconciliation statement to determine the true cash balance as of June 30.
Bank Reconciliation statement as at June 30
Balance as per Bank Statement $56,084
Add Outstanding Lodgments $2,655
Less Unpresented Checks ($4,418)
Balance as per Cash Book $54,321
Conclusion
The true cash balance as of June 30 is $54,321.
Classifying Cash Flow Statement Components
The following table presents selected items from a recent cash flow statement of General Mills, Inc. For each item, determine whether the amount would be disclosed in the cash flow statement under operating activities, investing activities, or financing activities. (General Mills uses the indirect method of reporting cash flows from operating activities).
DOLE DOLE FOOD COMPANY, INC.
Selected items from its Cash Flow Statement
1. Long-term debt repayments
2. Change in receivables
3. Depreciation and amortization
4. Change in accrued liabilities
5. Dividends paid
6. Change in income taxes payable
7. Cash received from sales of assets and businesses
8. Net income
9. Change in accounts payable
10. Short-term debt borrowings
11. Capital expenditures
Answer:
1. Long term debt payment - Financing activities
2.Changes in Receivables - Operating activities
3. Depreciation and amortization - Operating activities
4. Changes in accrued liabilities - Operating activities
5. Dividend paid - Financing activities
7. Cash Received from sales of assets and business - Investing activities
8. Net Income - Operating activities
9. Change in accounts payable - Operating activities
10. Short term debt borrowings - Financing activities
11. Capital Expenditures - Investing activities
Karma Company has prepared its operating budget for the first quarter of 20x9. The company forecasts sales of $50,000 in February, $60,000 in March, and $70,000 in April. Variable and fixed expenses are as follows: Variable: Utilities (electricity): 40 % of sales Misc. expenses: 5 % of sales Fixed: Salary expense $ 8,000 per month Rent expense $ 5,000 per month Depreciation expense $ 1,200 per month Utilities expense (fixed part) $ 800 per month Misc. Expense (fixed part) $ 1,000 per month What are the total selling and administrative expenses for the month of February
Answer:
The correct solution is "38,500".
Explanation:
The given values are:
Sales in February,
= $50,000
Sales in March,
= $60,000
Sales in April,
= $70,000
Now,
The total selling and administrative expenses for the month of February will be:
= [tex]Variable \ costs + Fixed \ cos ts[/tex]
On substituting the values, we get
= [tex]50,000\times (40 \ percent+5 \ percent) + (8,00 0+5,000+1,200+800+1,000)[/tex]
= [tex]20000+2500+8000+5000+1200+800+1000[/tex]
= [tex]38,500[/tex]
Selling, general and administrative costs are the costs incurred by a firm to market, sell and deliver its products and services, as well as run day-to-day operations.
The correct solution is "38,500".
Given Information:-
Sales in February= $50,000
Sales in March= $60,000
Sales in April = $70,000
The total selling and administrative expenses for the month of February will be:
=Variable Costs + Fixed Costs
=50,000*(40%+ 5%)+(8,000+5,000+1,200+800+1,000)
=20,000+2500+8,000+5,000+1,200+800+1,000
=$38,500
To know more about selling and administrative expenses, refer to the link:
https://brainly.com/question/13937441
If a taxpayer sells property for cash, the amount realized consists of the net proceeds from the sale. For each of the following, indicate the effect on the amount realized if:
a. The property is sold on credit. The amount realized includes both the cash received at the time of sale and the cash to be received in the future .
b. A mortgage on the property is assumed by the buyer. The assumption by the buyer of the seller's mortgage the amount realized by_______ .
c. A mortgage on the property of the buyer is assumed by the seller. The assumption by the seller of the buyer's mortgage the amount realized by______ .
d. The buyer acquires the property subject to a mortgage of the seller. The buyer's acquisition of the property subject to the mortgage of the seller the amount realized by_______ .
e. Stock that has a basis to the purchaser of $6,000 and a fair market value of $10,000 is received by the seller as part of the consideration. The receipt of the stock by the seller the amount realized by the seller by_________
Answer:
a. Is answered
b. The amount realized increases.
As the mortgage is assumed by the buyer, the seller is now free of the debt in addition to making cash from selling. Realized value therefore increases.
c. The amount realized decreases.
As the mortgage is assumed by the seller, they will have to pay off the mortgage from the cash received therefore their realized value decreases.
d. Amount realized increases.
As the buyer is gets the property subject to the mortgage, they will be the ones making the mortgage payments instead of the seller so the seller's realized value will increase.
e. Realized value increases to $10,000.
The seller accepted the stock so the fair value will be the amount considered for the realized value.
Orchid Biotech Company is evaluating several development projects for experimental drugs. Although the cash flows are difficult to forecast, the company has come up with the following estimates of the initial capital requirements and NPVs for the projects. Given a wide variety of staffing needs, the company has also estimated the number of research scientists required for each development project (all cost values are given in millions of dollars).
Project Number Initial Capital Number of Research Scientists NPV
I $10 2 $10.1
II 15 3 19.0
III 15 4 22.0
IV 20 3 25.0
V 30 12 60.2
Required:
a. Suppose that Orchid has a total capital budget of $60 million. Calculate the profitability index for each project. How should Orchid prioritize these projects?
b. Suppose that Orchid currently has 12 research scientists and does not anticipate being able to hire more in the near future. How should Orchid prioritize these projects?
Answer:
I. 2.01
II. 2.27
III. 2.47
IV. 2.25
V. 3.01
Order of priority = V, III and II
b. Order of priority = IV, II, III, I, V
Explanation:
profitability index = 1 + (NPV / Initial investment)
I. 1 + ($10.1 / $10) = 2.01
II. 1 + (19 / 15) = 2.27
III. 1 + (22/15) = 2.47
IV. 1 + (25/20) = 2.25
V. 1 + (60.2 / 30) = 3.01
If the firm has a total capital budget of $60 million, it should only choose its most profitable projects within the budget
The most profitable is project V with a cost of $30 million. Then project III with a cost of $15 million. Then project II with a cost of $15 million.
Order of priority = V, III and II
b. to determine order of priority, divide NPV / number of research assistant
1. 10.1 / 2 = 5.05
2. 19 / 3 =6.3
III. 22 / 4 = 5.5
IV. 25 / 3 = 8.3
V. 60.2 / 12 = 5.02
Order of priority = IV, II, III, I, V