On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,000 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts. Cash $ 11,360 Cash dividends $ 2,000 Accounts receivable 14,000 Consulting revenue 14,000 Office supplies 3,250 Rent expense 3,550 Land 46,000 Salaries expense 7,000 Office equipment 18,000 Telephone expense 760 Accounts payable 8,500 Miscellaneous expenses 580 Common Stock 84,000 Exercise 1-18 Preparing a statement of cash flows LO P2 Also assume the following: The owner’s initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock. The company’s $18,000 equipment purchase is paid in cash. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 in employee salaries yet to be paid. The company’s rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $14,000 consulting fees earned. Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
Answers
Answer: The answer has been attached
Explanation:
The income statement also referred to as the profit and loss account is a financial statements of a company that shows the revenues and the expenses of a company during a particular period.
The income statement for Ernst consulting has been attached.
Related Questions
Concern about terrorists using biological warfare has caused the U.S. government to create stockpiles of specific drugs. The federal government has purchased Cipro, the only drug specifically approved by the FDA to treat inhaled anthrax, from Bayer, the German drug and chemical company. The U.S. government has also purchased smallpox vaccine from Acambis, a British drug company. These transactions are examples of: Group of answer choices market elasticity principles. the circular flow of products. organizational clusters. reciprocity. global organizational markets.
Answers
Answer: Global organizational markets.
Explanation:
In Organizational markets, the main participants are huge trading Institutions such as Governments or large Corporations. In Organizational markets, the participants may be few but the transactions can have a lot of Quantity i.e a government can buy a huge order from one company.
The goods sold here can be highly specialized and made for few buyers and so is not for personal Consumption.
The US buying a drug for anthrax which is a rare disease but can be weaponized shows that this is a specific purchase therefore it is more likely to be a purchase on the Global Organizational Market.
Aliyah is preparing to expand her IT consulting company. The current market rate for IT professionals is $58,000 per year. Each employee she hires will also require a computer and equipment that costs $6,000 per employee annually. Hiring more employees means that Aliyah can provide consulting services to more clients each year. Each client Aliyah has will pay her $10,000 per year.The number of clients Aliyah can take on is dependent on the number of workers she hires and is depicted in the accompanying table.Use this information to calculate the marginal cost and the marginal benefit of hiring each worker.Number of workers Clients per year0 01 112 203 274 32a. The first worker's marginal cost is $__________.b. The first worker's marginal benefit is $__________.c. The second worker's marginal cost is $__________.d. The second worker's marginal benefit is $__________.e. The third worker's marginal cost is $__________.f. The third worker's marginal benefit is $__________.g. The fourth worker's marginal cost is $__________.h. The fourth worker's marginal benefit is $__________.i. Using the rational rule to maximize her economic surplus, Aliyah should hire _________ workers.
Answers
Answer and Explanation:
a. The first worker marginal cost is
= The current market rate for IT professional + computer and equipment costing
= $58,000 + $6,000
= $64,000 per year
b.The marginal benefit per worker for hiring first worker is
= Pay each client × number of clients
= $10,000 × 11 clients
= $110,000
c . The second worker marginal cost is
= The current market rate for IT professional + computer and equipment costing
= $58,000 + $6,000
= $64,000 per year
d The second worker marginal benefit is
= Pay each client × number of clients
= $10,000 × (20 clients - 11 clients)
= $90,000
e The third worker marginal cost is
= The current market rate for IT professional + computer and equipment costing
= $58,000 + $6,000
= $64,000 per year
f. The third worker marginal benefit is
= Pay each client × number of clients
= $10,000 × (27 clients - 20 clients)
= $70,000
g. The fourth worker marginal cost is
= The current market rate for IT professional + computer and equipment costing
= $58,000 + $6,000
= $64,000 per year
h. The fourth worker marginal benefit is
= Pay each client × number of clients
= $10,000 × (32 clients - 27 clients)
= $50,000
I. Aliyah will employ 3 workers, because the extra marginal gain to the worker is greater than the marginal cost. It implies the hiring worker's cost is less than the benefits they receive.
In economics terms, the marginal cost is the cost that is caused by a change in the total cost that arises because of the increase in the quantity produced, and the cost of producing the additional quantity. It is calculated as the change in the cost is divided by the change in quantity.
a. The first worker marginal cost is
= The current market rate for IT professionals + computer and equipment cost
= $58,000 + $6,000
= $64,000 per year
b.The marginal benefit per worker for hiring the first worker is
[tex]= \text{Pay each client} \times \text{number of clients}&= \$10,000 \times 11 \:clients\\&= \$110,000[/tex]
c . The second worker marginal cost is
= The current market rate for IT professionals + computer and equipment cost
= $58,000 + $6,000
= $64,000 per year
d The second worker marginal benefit is
[tex]= \text{Pay each client}\times \text{ number of clients} = \$10,000 \times (20 \:clients - 11\: clients)= \$90,000[/tex]
e The third worker marginal cost is
= The current market rate for IT professionals + computer and equipment cost
= $58,000 + $6,000
= $64,000 per year
f. The third worker marginal benefit is
[tex]=\text{ Pay each client} \times \text{ number of clients} = \$10,000 \times (27 \:clients - 20 \:clients)= \$70,000[/tex]
g. The fourth worker marginal cost is
= The current market rate for IT professionals + computer and equipment cost
= $58,000 + $6,000
= $64,000 per year
h. The fourth worker marginal benefit is
[tex]= \text{Pay each client} \times \text{number of clients} = \$10,000 \times (32\: clients - 27 \:clients)= \$50,000[/tex]
I. Aliyah will employ 3 workers because the extra marginal gain to the worker is greater than the marginal cost. It implies the hiring worker's cost is less than the benefits they receive.
To know more about the marginal cost, refer to the link below:
https://brainly.com/question/20355404
Partial adjusted trial balance for Bramble Corp. at December 31, 2017, includes the following accounts:
Retained Earnings $17,700, Dividends $5,600, Service Revenue $38,800, Salaries and Wages Expense $13,700, Insurance Expense $1,850, Rent Expense $3,840, Supplies Expense $1,530, and Depreciation Expense $1,000. The balance in Retained Earnings is the balance as of January 1. Prepare a retained earnings statement for the year assuming net income is $15,787.
Answers
Answer:
Retained earnings statement for year ended December 31, 2017
Opening Retained Earnings Balance $17,700
Add Net Income $15,787
Less Dividends ($5,600)
Closing Retained Earnings Balance $27,887
Explanation:
Retained earnings statement shows the Income that is attributable to Common Stock Holders.
Its is prepared by adjusting the Opening Retained Earnings balance with the Income and Dividends declared during the period.
On January 1, Year 1, Hart Company issued bonds with a face value of $123,000, a stated rate of interest of 16 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 15 percent at the time the bonds were issued. The bonds sold for $127,123. Hart used the effective interest rate method to amortize the bond premium.
Prepare an amortization table.
Answers
Answer:
Find attached amortization table Hart Company bonds.
Explanation:
The amortization schedule starts with cash proceeds received from bondholders of $127,123,then adds interest expense to the cash proceeds using 15% effective interest rat i.e 15%*$127,123 and thereafter deducts interest payment which is 16% of face value i.e 16% *$123,000.
The premium amortization in each year is interest payment minus the interest expense.
Exhibit 9-4 Refer to Exhibit 9-4. Assume the economy is self-regulating and currently is in long-run equilibrium with the price level equal to P5. If something happens that shifts the AD curve to the AD1 position, the economy will eventually settle down at a long-run equilibrium point of __________. Question 6 options: P5, Q3. P4, Q4. P3, Q3. P3, Q5. P4, Q2.
Answers
Answer:
P3 and Q3The intersection of AD curve and the long-run aggregate supply curve determines the equilibrium real GDP and price level in the long run.This happens at P3 and Q3.
Explanation:
Exhibit 9-4 Refer to Exhibit 9-4.
Assume the economy is self-regulating and currently is in long-run equilibrium with the price level equal to P5.
If something happens that shifts the AD curve to the AD1 position, the economy will eventually settle down at a long-run equilibrium point of __________. Question 6 options: P5, Q3. P4, Q4. P3, Q3. P3, Q5. P4, Q2.
P3 and Q3The intersection of AD curve and the long-run aggregate supply curve determines the equilibrium real GDP and price level in the long run.This happens at P3 and Q3.
Module 2 Assignment By using 2-dimension graphs (in MS WORD) for PRICE and QUANTITY, demonstrate the effect that each of the following will have on the demand for gasoline in a competitive market? State what happens to demand. Explain your reasoning in each case and relate it to a demand determinant. If you are not able to use MS-WORD, just draw on a piece of paper, take a picture, and submit it as a PDF file. If you cannot use MS Word tools, just use your pen and paper and upload images or screenshots. (a) an increase in the number of cars (25 points) (b) the economy moves into a recession (25 points) (c) an increase in the price of car insurance, taxes, maintenance (25 points) (d) consumer expectations of substantial price increases in gasoline (25 points) Total == 100 points.
Answers
Answer: The answer is provided below
Explanation:
a. An increase in the number of cars will lead to an increase in demand as more people will demand for gasoline. This will lead to a rightward shift of the demand curve from D1 to D2. The increase in demand will also lead to the rise in price of gasoline from P1 to P2.
b. When the economy moves into a recession, people will purchase less cars because of the recession, as the income level of the consumers will have fallen. Due to the decrease in the number of cars, the demand for gasoline also reduces. This is denoted by the leftward shift in the demand curve in the attached diagram from D1 to D2.
c. The increase in the price of car insurance, taxes, maintenance will also lead to a reduction in the demand for cars which will in turn, reduce the demand for gasoline. Thereby the demand curve shifts from from D1 to D2 leftward.
d. The expectations of substantial increase in the price of gasoline, will lead to a higher demand for gasoline in the present period because due to the expectation of a higher price, the consumers will go and buy more gasoline and keep for future use. As the demand for gasoline rises, this will lead to the demand curve for gasoline to shift rightward and also the price will increase from P1 to P2.
The diagram has also been attached.
You are working as a head of Human resource department in an oil company. The high ups of your company asked you to select 12 expatriates to go to work in Iraq. You started working on it, nonetheless, you are concerned about safety issues there. How do you proceed?
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Answer:
Obtain latest security information of the location and possible risks.
Contact a good security company of Iraq to provide.
Ensure security insurance for each expatriate.
Create a security guide line for expatraite and train each expatriate.
Ensure safe lodging and transport facilities for all expatriate.
Explanation:
It is important that each expatriate know where they are going and the security issues of that place and what appropraite actions the employer has taken to minimize or mitigate those risks.
The following events pertain to Super Cleaning Company: 1. Acquired $15,600 cash from the issue of common stock. 2. Provided $13,600 of services on account. 3. Provided services for $4,600 cash. 4. Received $3,000 cash in advance for services to be performed in the future. 5. Collected $9,600 cash from the account receivable created in Event 2 6. Paid $5,600 for cash expenses. 7. Performed $1,500 of the services agreed to in Event 4 8. Incurred $2,100 of expenses on account. 9. Paid $1,400 cash in advance for one-year contract to rent office space. Paid $1,750 cash on the account payable created in Event 8. 11. Paid a $2,100 cash dividend to the stockholders. 2. Recognized rent expense for nine months' use of office space acquired in Event 9.
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Answer:
Since there is not enough room here to elaborate a horizontal financial statement, I attached an excel spreadsheet. Each of the 12 events corresponds to the events detailed in the question.
Explanation:
E. Preslay Company prepares monthly financial statements and uses the gross profit method to estimate ending inventories. Historically, the company has had a 40% gross profit rate. During June, net sales amounted to $200,000; the beginning inventory on June 1 was $60,000; and the cost of goods purchased during June amounted to $90,000. The estimated cost of E. Preslay Company's inventory on June 30 is
Answers
Answer:
$30,000
Explanation:
The computation of the estimated cost of ending inventory is shown below:
As we know that
Cost of goods sold = Beginning inventory + Cost of goods purchased - ending inventory
where,
Cost of goods sold is
= Net Sales - gross profit
= $200,000 - $200,000 × 40%
= $200,000 - $80,000
= $120,000
Beginning inventory is $60,000
Cost of goods purchased is $90,000
So, the ending inventory is
$120,000 = $60,000 + $90,000 - ending inventory
Hence, the ending inventory is $30,000
The cost of goods sold refers to the cost which is directly related to the goods sold or created i.e direct material, direct labor, etc
Assume that demand for a commodity is represented by the equation P=10−0.2Qd. Supply is represented by the equation P=2+0.2Qs, where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price. Instructions: Enter your answers as whole numbers.
Required:
a. Using the equilibrium condition Qs = Qd, determine equilibrium price.
b. Determine equilibrium quantity.
c. Graph the two equations to substantiate your answers and label these two graphs as D1 and S1.
Answers
Answer:
Equilibrium price=6
Equilibrium quantity=20
Explanation:
P=10-0.2Qd
P-10= -0.2Qd
Qd=p-10/-0.2
Qd=-5p+50
P=2+0.2Qs
P-2=0.2Qs
Qs=p-2/0.2
Qs=5p-10
(a)
Qs=Qd
5p-10= -5p+50
5p-10+5p-50=0
10p-60=0
10p=60
p=6
Equilibrium price=6
Equilibrium quantity
Qd=-5p+50
=-5(6)+50
=-30+50
=20
Qs=5p-10
=5(6)-10
=30-10
=20
Equilibrium quantity=20
(c) Graph has been attached showing the equilibrium price and quantity
Under _________dividend reinvestment plan, the company gives any cash dividends that investors would have received in a bank, which acts as a trustee. The bank then uses the money to repurchase the company’s existing stock in the stock market. The bank then allocates the shares purchased to the participating stockholders’ accounts on a pro rata basis.
Answers
Answer:
Old Stock
Explanation:
The Dividend Reinvestment Plan is a platform where investors or shareholders in a company, reinvest the dividends they gained into more shares sold by the same company, most times without having to pay commissions.
Under the Old stock dividend reinvestment plan, an outside trustee, that is, a member of the board who is not an officer in the company, repurchases the company's existing shares in the stock market and then allocates the shares purchased among the stockholders. They sell the shares at market price. Most times, in order to encourage shareholders participation the company making the repurchase takes care of the commission fees.
Compuvac Company has just completed its first pass forecast using the projected balance sheet method. need a total of 13,050,00 The firm has determined that it needs $4 million in new debt which can be sold at par with a 10% annual coupon. Additionally, the firm will sell 500,000 shares of new common equity at $18.10 per share. Next year's expected dividend is $0.24 per share. 40% tax rate. Given this information, what is the incremental change in AFN for Compuvac going from the first pass to the second pass?
Answers
Answer:
Incremental change in AFB would be $ 480,000
Explanation:
(a) Debt = $ 4,000,000
Interest on debt = 10%
Therefore, Interest outgo on debt = 10% of Debt
=10% of $4,000,000
=$ 400,000
(b) Dividend payable = $0.48 per share(given)
No of shares = 500,000 (given)
Therefore, Outgo on account of dividend = $ 0.48 /share * no of shares
=$0.48 * 500,000
=$240,000
(c) Given, that tax in second would be $160,000 lesser. i.e., outgo would actually be lesser to that extent
Therefore, incremental AFN = (a)+(b)-(c) = $ 400,000 + $ 240,000 - $160,000 = $480,000
Incremental change in AFB would be $480,000
Oregon Outfitters issues 2,000 shares of $1 par value common stock at $18 per share. Later in the year, the company decides to repurchase 130 shares at a cost of $19 per share.
(1) Record the original issue of the 2,000 shares,
(2) Record the repurchase of 130 shares, and
(3) Record the entry if Oregon Outfitters reissues the 130 shares of treasury stock at $26 per share. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answers
Answer: Please refer to Explanation
Explanation:
1.
DR Cash $36,000
CR Common Stock $2,000
CR Paid In capital in Excess of Par $34,000
(To record Issuance of Common Stock)
Workings
Cash = 2,000 shares * $18
= $36,000
Common Stock
= 2,000 * $1 (par value)
= $2,000
Paid In Cap
= Cash - Common Stock
= 36,000 - 2,000
= $34,000
2.
DR Treasury Stock $2,470
CR Cash $2,470
(To record Repurchase of Stock)
Workings
Cash = 130 * 19
= $2,470
3.
DR Cash $3,380
CR Treasury Stock $2,470
CR Paid In Capital in Excess (Treasury Stock) $910
(To record reissuance of Treasury Stock)
Working
Cash = 130 *26
= $3,380
Paid In Capital
= Cash - Treasury Stock
= 3,380 - 2,470
= $910
Langston Labs has an overall (composite) WACC of 10%, which reflects the cost of capital for its average asset. Its assets vary widely in risk, and Langston evaluates low-risk projects with a WACC of 8%, average-risk projects at 10%, and high-risk projects at 12%. The company is considering the following projects:Project Risk Expected ReturnA High 15%B Average 12%C High 11%D Low 9%E Low 6%Which set of projects would maximize shareholder wealth?1) A, B, C, D, and E2) A, B, and C3) A, B, and D4) A and B5) A, B, C, and D
Answers
Answer:
3) A, B, and D
Explanation:
WACC for higher risk projects combined with lower risk project will reduce the overall risk exposure. The projects with high risk might also provide high rate of return but volatility will be high for such projects. Those projects are selected which has rate of return higher than WACC. The project A has high risk but its rate of return is 15% which is 3% higher than in its WACC. The project B has average risk with rate of return 12% while the WACC is 10%. The project D should be selected because it has low risk with rate of return 9% which is 1% higher return than the cost of capital.
Chuck, a single taxpayer, earns $69,000 in taxable income and $27,100 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.) Required: How much federal tax will he owe
Answers
Answer: $10,970
Explanation:
I have attached the US Tax rate Schedule to this question.
Note that the Interest Earned from the investment are Tax Free because it is from an Municipal bond and those are tax free.
The only figure to calculate tax on is therefore the income of $69,000.
According to the Schedule. If an individual makes between $40,126 and $85,525, they are to pay $4,617.50 plus 22% of the income over $40,125.
That means then that Chuck's tax rate is,
= 4,617.50 + 22% * ( 69,000 - 40,125)
= 4,617.50 + 22% * 28,875
= $10,970
He owes $10,970 in Federal Taxes
Akwamba made this statement ‘organisations cannot be successful if managers fail to pay attention to the forces in the external environment’. Do you agree or not? Justify using practical examples
Answers
Answer:
For a particular organization to be successful it needs to pay attention to forces and external environments, hence I agree
Example a competitor upgrading it Software and hardware will be a force or external attack to another firm whom Had not.
On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $65,000 face value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $19,625 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $31,200 cash per year.
Prepare an amortization schedule for the four-year period.
-------------------------------------------------------------------------------------'
year principal balance jan 1 cash payments dec 31 applied to interest applied to principal principal balance end of period
1
2
3
4
5
Answers
Answer:
Find attached schedule.
Explanation:
The bond amortization schedule is hereby attached,the balance of $1 left after 4 years is due to rounding error,since the loan is meant to have been paid in its entirety,hence zero balance should be left.
The repayment of $19,625 is usually divided into two the interest which is the 8% of the loan beginning while the balance after having deducted interest is used to reduce the principal.
On January 1, 2020, Blue Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for $1,300,000. At the time, the book value and the fair value of John’s net assets were $14,100,000.
On July 1, 2021, Blue paid $2,920,000 for 48,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Blue owns 30% of John and can exercise significant influence over John’s operating and financial policies. (Any excess fair value is attributed to goodwill.)
John reported the following net income and declared and paid the following dividends.
Net Income
Dividend per Share
Year ended 12/31/20
$690,000 None
Six months ended 6/30/21
480,000 None
Six months ended 12/31/21
800,000 $1.55
Determine the ending balance that Blue Co. should report as its investment in John Corp. at the end of 2021.
Investment in Elton John Corp. $Enter the investment in Elton John Corp. in dollars
Answers
Answer:
$4,465,400
Explanation:
The investment in Elton in 2020 $1,300,000
share of 2020 net income(10%*$690,000) $69,000
ending balance of investment in 2020 $1,369,000
Share of net income 6/30/21 ($480,000*10%) $48,000
ending balance of investment 6/30/21 $1,417,000
Acquisition of investment 7/1/2021 $2,920,000
Total amount of investment $4,337,000
share of net income 12/31/2021($800,000*30%) $240,000
Dividends received(48,000+24,000)*$1.55 ($111,600)
balance of investment in Elton John Corp $4,465,400
In computing the above value,at each point in time the share of Blue Co from net income earned by Elton john corp is added while any dividends received in cash is deducted.
The current sections of Pearl Corp.’s balance sheets at December 31, 2021 and 2022, are presented here. Pearl Corp.’s net income for 2022 was $279,400. Depreciation expense was $46,200.
2022 2021
Current assets
Cash $68,200 $97,900
Accounts receivable 93,500 75,900
Inventory 85,800 68,200
Prepaid expenses 18,700 20,900
Total current assets $266,200 $262,900
Current liabilities
Accrued expenses payable $6,600 $17,600
Accounts payable 96,800 79,200
Total current liabilities $103,400 $96,800
Prepare the net cash provided (used) by operating activities section of the company's statement of cash flows for the year ended December 31, 2022 using the indirect method.
Pearl Corp.
Partial Statement of Cash Flows
December 31, 2022
Cash Flows from Operating Activities
Net Income 168,300
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities
Depreciation Expense 29,700
Decrease in Accounts Receivable
Decrease in Inventory
Increase in Prepaid Expenses:
Decrease in Accrued Expenses Payable
Decrease in Accounts Payable
Net Cash Provided by Operating Activities
Answers
Answer:
$299,200
Explanation:
Pearl Corp.’s Statement of cash flows
Cash Flows from operating activities:
Net Income 279,400
Adjustments to reconcile net income to cash flow from operating activities:
Depreciation expense $46,200
Accounts Receivables Increase ($17,600)
(93,500 -75,900)
Inventories Increase ($17,600)
(85,800 -68,200)
Prepaid expenses decrease $2,200
(18,700- 20,900)
Accrued Expenses payable decrease($11,000)
($6,600- $17,600)
Accounts Payable increase $17,600
(96,800 - 79,200)
Net Cash provided by Operating Activities $299,200
If company policy changes, should you explain those changes to employees and customers at about the same time? Or should one group before informed before the other group?
Answers
Answer:
Employees
Explanation:
The company should explain the changes to the employees first and then the constumers. This way the employees can answer questions regarding the changes better.
Suppose that Paolo, an economist from a university in Arizona, and Sharon, an economist from a university in Massachusetts, are arguing over government bailouts. The following dialogue shows an excerpt from their debate:
Sharon: Thanks to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days.
Paolo: Indeed, it's gotten crazy! A government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets.
Sharon: I don't know about that. Without a bailout of severely distressed financial firms, the economy will experience a deep recession.
The disagreement between these economists is most likely due to _____________________. Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a. Lawyers make up an excessive percentage of elected officials
b. Minimum wage laws do more to harm low-skilled workers than help them.
c. Tariffs and import quotas generally reduce economic welfare.
Answers
Answer: 1. Differences in scientific judgements.
2. c. Tariffs and import quotas generally reduce economic welfare.
Explanation:
1. Economists tend to have very varying opinions and this is a well known fact. So much so that even former President Ronald Reagan made jokes about their difference in opinions.
The two Economists in the scenario above, Paolo and Sharon both seem to disagree with each other because they believe that bailouts affect the Economy in different ways. This is most likely due to the scientific judgement that they reached after researching or thinking about the problem from different angles.
2. Despite the differences that Economists have with each other, it is a general belief that Tariffs and Quotas and indeed any hindrance to free trade between countries reduces economic welfare. In the case of Tariffs and Quotas, that reduction in welfare is called a Deadweight loss. You would be hard pressed to find an Economist that supports Quotas and Tariffs.
The Thomlin Company forecasts that total overhead for the current year will be $11,485,000 with 176,000 total machine hours. Year to date, the actual overhead is $7,979,000 and the actual machine hours are 89,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$3,071,600 underapplied b.$2,194,000 overapplied c.$3,071,600 overapplied d.$2,194,000 underapplied
Answers
Answer:
Under/over applied overhead= $2,171,244 underallocated
Explanation:
Giving the following information:
The estimated total overhead= $11,485,000
Estimated machine hours= 176,000
Year to date, the actual overhead is $7,979,000 and the actual machine hours are 89,000 hours.
First, we need to calculate the predetermined manufacturing overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 11,485,000/176,000
Predetermined manufacturing overhead rate= $65.25568 per machine-hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 65.25568*89,000= $5,807,756
Finally, we determine the under/over allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 7,979,000 - 5,807,756= $2,171,244 underallocated
Required information
[The following information applies to the questions displayed below.)
At the beginning of 2021, Brad's Heating & Air (BHA) has a balance of $25,900 in accounts receivable. Because BHA is a privately owned company, the company has used only the direct write-off method to account for uncollectible accounts. However, at the end of 2021, BHA wishes to obtain a loan at the local bank, which requires the preparation of proper financial statements. This means that BHA now will need to use the allowance method. The following transactions occur during 2021 and 2022.
1. During 2021, install air conditioning systems on account, $189,000.
2. During 2021, collect $184,000 from customers on account.
3. At the end of 2021, estimate that uncollectible accounts total 20% of ending accounts receivable.
4. In 2022, customers' accounts totaling $7,900 are written off as uncollectible.
Required:
Record each transaction using the allowance method.
Answers
Answer and Explanation:
The Journal entries are shown below:-
a. Accounts receivable Dr, $189,000
To service revenue $189,000
(Being service provided on the account is recorded)
Here we debited the accounts receivable as it increased the assets and we credited the service revenue as it increased the revenue
b. Cash Dr, $184,000
To Accounts receivable $184,000
(Being collection on accounts is recorded)
Here we debited the cash as it increased the assets and we credited accounts receivable as it decreased the assets
c. Bad debt expenses Dr, $6,180
To Allowance for uncollectible accounts $6,180
(Being estimated uncollectible accounts is recorded)
Here we debited the bad debt expenses as it increased the expense and we credited the allowance for uncollectible accounts as it decreased the asset
Working note
Uncollectible accounts = (Total account - Cash collected) × 20%
= ($25,900 + $189,000) - $184,000 × 20%
= $30,900 × 20%
= $6,180
d. Allowance for uncollectible accounts Dr, $7,900
To Accounts receivable $7,900
(Being write off of actual bad debt is recorded)
Here we debited the allowance for uncollectible accounts as it increase the allowance and we credited the accounts receivable as it decreased the asset
Tiberius Manufacturing is considering two alternative investment proposals with the following data: Proposal X Proposal Y Investment $ 11 comma 600 comma 000 $ 480 comma 000 Useful life 5 years 5 years Estimated annual net cash inflows for 5 years $ 2 comma 320 comma 000 $ 95 comma 000 Residual value $ 54 comma 000 $ 24 comma 000 Depreciation method Straightminusline Straightminusline Required rate of return 14% 14% Calculate the accounting rate of return for Proposal Y. (Round any intermediate calculations and your final answer to two decimal places.)
Answers
Answer:
1.51%
Explanation:
The computation of the accounting rate of return is shown below:
Accounting rate of return = Average annual profit ÷ average investment
where,
Average annual profit is
= Estimated annual net cash inflows for 5 years - annual depreciation
= $95,000 - ($480,000 - $24,000) ÷ 5 years
= $95,000 - $91,200
= $3,800
And, the average annual investment is
= (Initial Investment + Scrap Value) ÷ 2
= ($480,000 + $24,000) ÷ 2
= $252,000
Now placing these values to the above formula
So, the accounting rate of return is
= $3,800 ÷ $252,000
= 1.51%
Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of processing were $300,000. Production and sales value information for the month were as follows: Product Units Produced Final Sales Value per Unit Separate Costs A 10,000 $25 $125,000 B 15,000 $30 $250,000 C 12,500 $24 $125,000 What is the constant gross margin percentage for Calamata
Answers
Answer:
20%
Explanation:
Gross profit is the net of sales and cost of sales. Gross Profit percentage is the ratio of gross profit to sales expressed as percentage.
Product Units Produced Final Sales Value per Unit Separate Costs
A 10,000 $25 $125,000
B 15,000 $30 $250,000
C 12,500 $24 $125,000
Total 37,500 $500,000
Sales Value
A (10,000 x $25) $250,000
B (15,000 x $30) $450,000
C (12,500 x $24) $300,000
Total Sales Value $1,000,000
Less
Joint Cost ($300,000)
Separable cost ($500,000)
Gross Profit $200,000
Gross Profit Percentage = ( $200,000 / $1,000,000 ) x 100 = 20%
Given the following information, calculate the total annual tax liability of the homeowner market value of property: $537,500; assessed value of property: 60% of the market value, exemptions: $2,500; school district millage rate: 29.25 mills; county and township millage rate: 5.75 mills. a.$7,437.50 b.$11,287.50 c. $11,200.00 d.$188,125.00
Answers
Answer:
The total annual tax liability of the homeowner market value of property is $11,200.00 . The right answer is c
Explanation:
According to the given data we have the following:
Market value of property= $5,37,500
Assessed value of property= 60% of the market value
Hence, Assessed value of property =$5,37,500*60% =$3,22,500
Exemption: $2500
Therefore,Assessed value =$3,22,500-$2,500 =$3,20,000
Schol district milleage rate= 29.25Mills
County and township milleage =5.75 Mills
Total rate of Mills =29.25+5.75=35 mills
Therefore, to calculate the total annual tax liability of the homeowner market value of property we would have to use the following formula:
Property tax amount= (Assessed value* Rate of mills/1,000,000)*1,000
Property tax amount= ($320,000*35/1,000,000)*1,000
Property tax amount= $11,200.00
The total annual tax liability of the homeowner market value of property is $11,200.00
Ben & Jerry’s Homemade, Inc., the Vermont-based manufacturer of ice cream, frozen yogurt, and sorbet, was known for having a rule that the compensation for the highest paid employee (i.e., the CEO) could not be more than seven times the pay of the lowest paid employee. Applying Hofstede’s model of cultural influence, which of the five cultural dimensions is most closely related to this rule?
Answers
Answer:
Five Cultural Dimension are discussed as under:
Explanation:
Geert Hofstede's five cultural dimensions standard is used for understanding cultural differences and highly valued because it provides the understanding of the culture of a particular market and these are as under:
Number 1. Power Distance
The Power Distance talks about how much inequality is accepted in the culture by the dominant players of the society. The way the society handles the issues tells about how they handle inequalities.
Number 2. Individualism versus collectivism
The individualism dimension is talks about how much an individual interest are important as opposed to the group interests. The higher value of individual as opposed to the group interest is Individualism and lower value of individual as opposed to the group interest is Collectivism. It basically represents how much the individual values the interest of a group when these interest are in conflict with their interest. Similarly it also tells how much the group values the interest of an individual when these interest are in conflict with their interest.
Number 3. Masculinity
The masculinity dimension is all about the things and values in a culture that are considered very important and has greater influence of masculine side. The dimension basically considers the preference of values in the society which includes social work, heroism, Patriotism, etc.
Number 4. Uncertainty Avoidance
The uncertain avoidance dimension tells about the risks and uncertainty that the dominant players of the society considers in policy reforms and are concerned with the issues mitigation.
Number 5. Indulgence
The indulgence dimension means how much an individual or the society as a whole are are capable to control their desires and impulses. This also means how much their desires are valuable than others and how they are going to achieve it in practical life.
The five cultural dimensions closely related to this rule include:
Power DistanceIndividualism v. collectivismMasculinityUncertainty AvoidanceIndulgenceThe cultural dimensions model was established in 1970s based on a decade of research and has been an internationally recognized standard for understanding cultural differences.
Hence, while applying the Hofstede’s model of cultural influence, the five cultural dimensions that is most closely related to this rule includes Power Distance, Individualism v. collectivism, Masculinity, Uncertainty Avoidance and Indulgence.
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Prepare a statement of cash flows. Also assume the following:
a. The owner’s initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock.
b. The company’s $18,000 equipment purchase is paid in cash.
c. The accounts payable balance of $8,500 consists of the $3,250 office supplies purchase and $5,250 in employee salaries yet to be paid.
d. The company’s rent, telephone, and miscellaneous expenses are paid in cash.
e. No cash has been collected on the $14,000 consulting fees earned.
Answers
Answer:
11,360
Explanation:
Ebony Ernst Statement of Cash Flow
Cash flow from operating activities:
Payment towards expenses :
Payment of salary 1,750
Payment of rent 3,550
Payment of telephone expense 760
Payment of misc.expense 580
Total of Cash flow from operating activities 6640
(1750+3550+760+580)
Cash flow from Investing activities:
Purchase of office equipment (18,000)
Cash flow from financing activities:
Cash from common stock 38,000
Cash paid (2,000)
Cash flow from financing activities (38,000-2,000) 36,000
Net cash flow during the year (18,000-6,640)11,360
Beginning balance 0
Year end cash balance 11,360
Consider a firm's short-run cost curves. If average total cost is increasing as output rises, then
Select one:
a. total fixed costs must be increasing
b. average variable cost must be increasing,
c. marginal cost must be below average total cost.
d. average fixed costs must be increasing.
e, average total cost is no longer equal to the sum of average variable cost and average fixed cost.
Answers
Option (a) total fixed costs must be increasing if the average total cost is increasing as output rises.
What happens to the average fixed cost when production increases in the short term?In the short term, as a company's output increases, its average fixed cost decreases. Fixed costs remain the same regardless of the number of products produced. As performance improves, the fixed cost contribution per unit decreases.
On the short-term curve, much of the initial downslope is due to lower average fixed costs. Increasing the variable input return at low output levels also plays a role, but the slope is due to the decreasing limit variable input return.
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According to new trade theory, trade, through its impact on economies of scale, is most likely to reduce the volume of the goods produced. decrease the variety of goods available to consumers. decrease the average costs of goods. inhibit first-mover advantages in all industries. benefit only nations that differ in resource endowments or technology.
Answers
Answer:
Option C (Decrease of the average cost of goods) seems to be the right response to the key statement.
Explanation:
NTT seems to be a compilation of business theories for world commerce, considering the role of size distribution rates of return as well as efficiency gains or effects on the network.And as per this theory, in addition to its effect on the economy of scale, trade or exchange is much more probable to reduce the total amount of goods and services.Other possibilities aren't related to something like the scenario in question. So option C seems to be the perfect solution.