Answer:
Total annual cash inflow= $5,000
Explanation:
The total annual cash inflow will be the sum of the savings in operating costs and the incremental contribution from the sale of the bagels.
Annual contribution from Bagel = 1,500×$0.90=1350
Operating cost savings = 3,650
Total annual cash inflow = 1,350 + 3,650 =5,000
Total annual cash inflow= $5,000
Rodney (a fictional person) was self-employed, running a successful business, seemingly healthy, and never thought he would have financial problems. Being self-employed, he lacked health insurance. One day on the job, Rodney suffered a heart attack and was hospitalized for a week. As a result, he owed more than $100,000 in hospital and medical bills to the hospital. After the heart attack, Rodney could not work in his physically demanding line of work, and his business suffered dramatically. The bills and mortgage payments kept piling up, and Rodney was sinking fast. On top of the medical bills and mortgage, he owed thousands of dollars to multiple companies and creditors. Rodney considered selling his house to get out of the financial crisis he was in, but the value of the house had dropped significantly. After much consideration, Rodney decided to file, bankruptcy. In the end, he decided he would rather have a bankruptcy on his record instead of dealing with a mountain of debt.
1. Bankruptcy, ___________occurs when a debtor turns over all assets to a trustee, an individual who takes over administration of the debtor's estate.
a. An order of relief
b. An automatic stay
c. Relief
d. Liquidation
e. Bankruptcy
2. Who is defined as a debtor for liquidation purposes? Can Rodney file for bankruptcy?
a. Banks; Rodney cannot file.
b. Individuals; Rodney can file.
c. Health Maintenance Organizations; Rodney cannot file.
d. Partnerships: Rodney cannot file
e. Corporations; Rodney cannot file
3. Suppose that Rodney did not intend to file for voluntary liquidation. Could he be forced into bankruptcy?
a. No, he must file the bankruptcy himself.
b. Yes, because he has more than 12 creditors.
c. Yes, because he has a single creditor with a claim of more than $12,300 in debt.
d. No, because people who are self-employed cannot be forced into filing.
4. Rodney has a lot of creditors that are trying to sue him for the debt he owes. One benefit of filing is that once a petition is filed, the code provides for a(n) _______________for almost all creditor litigation against the debtor.
a. Liquidation
b. Order of relief
c. Creditor’s meeting
d. Preferential payment
e. Automatic stay
5. If the filing of Rodney's voluntary petition is proper, the petition automatically becomes a(n):_____.
a. Fraudulent transfer
b. Creditor’s meeting
c. Preferential payment
d. Discharged debt
e. Order of relief.
6. Suppose Rodney fails to show up at his creditors' meeting with his creditors because he is scared to meet with the hospital representatives. What is a possible consequence of his failure to show?
a. His creditors will be allowed to sue him for failure to show.
b. The court may refuse to grant the bankruptcy
c. Rodney will be charged with a criminal offense.
d. There is no penalty for missing a creditor’s meeting.
e. His appointed trustee will be penalized, but Rodney will not.
Answer:
1. Bankruptcy, ___________occurs when a debtor turns over all assets to a trustee, an individual who takes over administration of the debtor's estate.
b. An automatic stay
2. The person defined as a debtor for liquidation purposes is
b. Individuals; Rodney can file.
3. If Rodney did not intend to file for voluntary liquidation, he could not be forced into bankruptcy. a. No, he must file the bankruptcy himself.
4. One benefit of filing is that once a petition is filed, the code provides for a(n) _______________for almost all creditor litigation against the debtor.
e. Automatic stay
5. If the filing of Rodney's voluntary petition is proper, the petition automatically becomes a(n):_____.
e. Order of relief.
6. A possible consequence of Rodney's failure to show up at a creditors meeting is:
b. The court may refuse to grant the bankruptcy
Explanation:
In bankruptcy practices, an order for relief invokes the automatic stay. It is a block on Rodney's debts which brings down the iron curtain, thus, separating Rodney's pre-bankruptcy from his post-bankruptcy. It automatically creates a bankruptcy estate, which prohibits all unauthorized transfers of the Rodney's property.
Firm A is very aggressive in its use of debt to leverage up its earnings for common stockholders, whereas Firm NA is not aggressive and uses no debt. The two firms' operations are identical--they have the same total investor-supplied capital, sales, operating costs, and EBIT. Thus, they differ only in their use of financial leverage (wd). Based on the following data, how much higher or lower is A's ROE than that of NA, i.e., what is ROEA - ROENA?
Applicable to Both Firms Firm A's Data Firm NA's Data
Capital $180,000 ___________ 50% ___________ 0%
EBIT $40,000 Int. rate 12% Int. rate 0%
Tax rate 35%
A) 10.25%.
B) 12.01%.
C) 10.35%.
D) 12.12%.
E) 12.84%.
Answer:
Kindly check the because my below submission is water tight
Explanation:
First and foremost, we need to determine the net income for both companies bearing in mind that the for firm A interest expense is 12% of debt capital whereas debt capital is 50% of total capital of $180,000 since the debt ratio(debt/total capital) of firm of Firm A is 50% and 0% for Firm NA
EBIT=$40,000
tax rate=35%
Firm A:
Debt capital=50%*$180,000=$90,000
Equity=50%*$180,000=$90,000
interest expense=$90,000*12%
interest expense=$10,800
Earnings before tax=$40,000-$10,800=$29,200
net income=earnings before-tax*(1-tax rate)
net income=$29,200*(1-35%)
net income=$18,980
return on equity=net income/equity
return on equity=$18,980/$90,000
return on equity=21.09%
Firm NA:
Equity=$180,000
debt=0%
EBIT=$40,000
no debt, no interest expense
net income=$40,000*(1-35%)
net income=$26,000
return on equity=$26,000/$180,000
return on equity=14.44%
ROEA - ROENA=21.09%-14.44%=6.65%
After a project has been accepted, the decision to lease or buy is determined by the present value of the lease's cash flows when discounted at the project's risk-adjusted cost of capital.
true or false?
1 points eBookPrintReferencesCheck my workCheck My Work button is now enabledItem 6 Beverly Company has determined a standard variable overhead rate of $3.80 per direct labor hour and expects to incur 0.50 labor hour per unit produced. Last month, Beverly incurred 1,600 actual direct labor hours in the production of 3,300 units. The company has also determined that its actual variable overhead rate is $2.40 per direct labor hour. Calculate the variable overhead rate and efficiency variances as well as the total amount of over- or underapplied variable overhead.
Answer:
$8,700
Explanation:
Variable Overhead Rate Variance = Actual Hours *(Actual Rate - Standard Rate) =
Variable Overhead Rate Variance = 1,600 * ($2.40 - $3.80)
Variable Overhead Rate Variance = 1,600 * $1.40 F
Variable Overhead Rate Variance = $2240 F
Variable Overhead Efficiency Variance = Standard Rate*(Actual Hours - Standard Hours) =
Variable Overhead Efficiency Variance = $3.80*(1,600 - 0.50*3,300)
Variable Overhead Efficiency Variance = $3.80* 50 F
Variable Overhead Efficiency Variance = $190 F
Over- or Underapplied Variable Overhead = Actual Overhead Incurred - Overhead Applied
Over- or Underapplied Variable Overhead = 1600*$2.40 - 3,300*$3.80
Over- or Underapplied Variable Overhead = $3840 - $12540
Overapplied Variable Overhead = $8,700
Jacoby Company received an offer from an exporter for 25,400 units of product at $18 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $21 Unit manufacturing costs: Variable 13 Fixed 5 The differential revenue from the acceptance of the offer is
Answer:
Differential income from the special order= $127,000
Explanation:
A company should accept a special order where the order generates additional contribution. i.e where the special order sales exceeds all relevant cost.
The relevant cost for decision to accept the special order are
I Incremental Revenue from the special order
2. incremental variable cost
Contribution per unit = 18-13=5
Total contribution from special order = contribution per unit × units
= 5× 25,400=$127,000
Differential income from the special order= $127,000
Note that whether or not the special order is accepted the fixed manufacturing and fixed operating expenses of would be incurred either way. Therefore , they are not relevant for the decision
ABM, Kaizen Costing Baker, Inc., supplies wheels for a large bicycle manufacturing company. The bicycle company has recently requested that Baker decrease its delivery time. Baker made a commitment to reduce the lead time for delivery from seven days to one day. To help achieve this goal, engineering and production workers had made the commitment to reduce time for the setup activity (other activities such as moving materials and rework were also being examined simultaneously). Current setup times were 12 hours. Setup cost was $600 per setup hour. For the first quarter, engineering developed a new process design that it believed would reduce the setup time from 12 hours to nine hours. After implementing the design, the actual setup time dropped from 12 hours to seven hours. Engineering believed the actual reduction was sustainable. In the second quarter, production workers suggested a new setup procedure. Engineering gave the suggestion a positive evaluation, and they projected that the new approach would save an additional six hours of setup time. Setup labor was trained to perform the new setup procedures. The actual reduction in setup time based on the suggested changes was four hours.
Required:
1. What kaizen setup standard would be used at the beginning of each quarter?
2. How much non-value-added cost was eliminated by the end of two quarters?
Answer and Explanation:
the computation is shown below:
1. Setup Time standard
Here the first quarter standard would be considered i.e. 9 hours so we dont take the actual setup time
The Second quarter is 1 hour that denotes the Expected setup time
2. The Total non-value cost which got eliminated is
Since, The setup time was Decrease from 12 hours to 3 hours.
So, the Total non value added cost eliminated is
= $600 × (12 - 3)
= $600 × 9
= $5,400
Pension Plan Entries Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $157,100 for the quarter ended December 31.
Journalize the entry to record the accrued pension liability on December 31.
Answer and Explanation:
The journal entry is shown below:
On Dec 31
Pension expense $157,100
To Unfunded pension liability $157,100
(Being the quarterly pension cost is recorded)
here the pension expense is debited as it increased the expense and credited the unfunded pension liability as it also increased the liabilities
So, the above journal entry should be recorded
The inflation rate in Great Britain is expected to be 4% per year, and the inflation rate in Switzerland France is expected to be 6% per year. If the current spot rate is £1 = SF 12.50, what is the expected spot rate in two years? A) SF12.99 B) SF 10.25 C) SF 11.44 D) SF 8.50 E) None of the above
Answer:
The spot rate in two years time = SF 12.99
Explanation:
The purchasing power parity states that the relationship between the current and future spot rate between two currencies can be linked to the differences in the expected inflation rate between the currency.
This relationship can be expressed as follows:
S1= So× (1 + hc)/(1 + hb)
So= Current spot rate, Hc- inflation rate in Switzerland, Inflation rate in Britain
Spot rate in a year's time
S1= 12.50, Hc=6%, Hc=4%
S1= 12.50× (1.06/1.04)
S1=12.74
Spot rate in two year's time
S1= 12.74× (1.06/1.04)
S1= 12.99
The spot rate in two years time = SF 12.99
Which of the following statements is true about work hour
regulations for 14 and 15-year-olds?
A. They can work up to 40 hours during a non-school week
B. They can work until 10 p.m. during the summer
C. They can work up to 5 hours during school days
D. They can only work outside school hours; no exceptions
Answer:
A
Explanation:
Cliff's Candy produces and sells boxes of chocolates. When Cliff produces and sells his profit-maximizing quantity of 1,000 boxes, the average total cost is $3.00. If Cliff were to produce 1,100 boxes, the average total cost would be $2.50. Which of the following inefficiencies of monopolistically competitive markets is described in this scenario?
a. Product-variety externality
b. Business-stealing externality
c. Markup over marginal cost
d. Excess capacity
Answer:
D
Explanation:
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
The product-variety externality: When new firms enter into an industry, competition drives price down. This increases consumer surplus. As a result, entry of firms into an industry results in a positive externality on consumers.
The business-stealing externality: When a new firm enters into an industry, existing firms lose customers and profits fall. As a result, entry of a new firm results in a negative externality on existing firms.
Markup over marginal cost is the extent of which price exceeds marginal cost
Excess capacity is when a firm is producing at a capacity that is less than what it is designed for. Excess capacity is evidenced when upon increasing output, average cost falls.
Once you have chosen a topic, what should you do before beginning the research process?
Find as many possible facts and details on c. Discuss your idea with others
your topic
a. Find as many possible facts and details on your topic
b. Choose a position
C.Discuss your idea with others
d. None of these
Answer:
the correct answer is option A.
Answer:
C: Discuss your idea with others
Explanation:
the answer IS NOT A, that other person is wrong!!
Huron has provided the following year-end balances: Cash, $29,000 Patents, $7,400 Accounts receivable, $9,400 Property, plant, and equipment, $98,400 Prepaid insurance, $4,100 Accumulated depreciation, $15,000 Inventory, $39,000 Retained earnings, 15,500 Trademarks, $13,100 Accounts payable, $8,000 Goodwill, $16,000 How much are Huron's current assets
Answer:
$81,500
Explanation:
Given the information above, Hurron's current asset will be computed using the formula below.
= Cash + Accounts receivables + Prepaid insurance + Inventory
= $29,000 + $9,400 + $4,100 + $39,000
= $81,500
Therefore, Hurron's current assets is $81,500.
g Other things equal, an improvement in the expected rate of net profit would Multiple Choice reduce the price level and unemployment. decrease the interest rate and cause aggregate demand to increase. increase consumption and net exports, causing aggregate demand to shift rightward. increase investment spending, real GDP, and the price level.
Answer:
Other things equal, an improvement in the expected rate of net profit would
increase investment spending, real GDP, and the price level.
Explanation:
When the net profit or income improves, the ability of entities to increase their investment spending is enhanced dramatically. The cascading effect improves the real GDP as more investments are made to take advantage of the increased profit rate. Overall, the price level will also increase with increased aggregate demand, coupled with improved investment, employment rate, and improvements in other market indices.
GDP is the Gross Domestic Product is the measurement tool of the market or the economy. It is for all the final goods and services being provided to the final consumer of the goods or services.
When other things are equal then if there is an improvement in the expected rate of net profit then it would also increase the investment spending, the real GDP, and the price level.
Due to the increase in the net profit or the net income of the business, then the ability of the entity towards its investment spending is also enhanced. This is the cascading effect that will also impact the improvement in the real GDP, this is because more investments are made by the entity to take advantage of the increased profit margin rate. This will substantially increase the price level of the goods or services.
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A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable $ 383,000 debit Allowance for uncollectible accounts 580 credit Net Sales 880,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.5% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared
Answer:
$4,400
Explanation:
The computation of the bad expense amount debited is shown below:
Since in the question it is mentioned that the company estimated 0.5% of net credit sales that are considered to be uncollectible
So,
The amount of bad debt expense debited is
= $880,000 × 0.5%
= $4,400
Hence, the amount is $4,400 that should be debited to bad debt expense
Your company has finished working on an open world video game, CyberPerson 2080. You now have a decision to make. You can auction your game off to a publisher, or you can keep your game and do the marketing and publishing yourself. If you auction your game off, your analytics team estimates there is a 25% chance you will earn $5 million, a 35% chance you will earn $12 million, and a 40% chance you will earn $16 million. If you keep your game, your marketing and publishing costs will be $7 million. If you keep your game, your analytics team estimates there is a 30% chance your game will be a critical and commercial hit, a 25% chance your game will sell well and make gross revenues of $12 million, and a 45% chance another similar game will come out at the same time and you will make gross revenues of $1 million.
If your game is a critical and commercial hit, there is a 60% chance it is on the "best of the year" lists and makes gross revenues of $64 million, a 35% chance it stays on the top seller lists for weeks and makes gross revenues of $28 million, and a 5% chance it makes gross revenues of $18 million. Assume you make decisions using expected value, and you are an expected value maximizer. If you make the optimal decision, how much will you expect to earn from your game?
Answer:
CyberPerson 2080
If you make the optimal decision, the amount you will expect to earn from your game is:
= $11.85 million.
Explanation:
a) Data and Calculations:
Expected value of game being a critical and commercial hit:
Probability Gross Revenue Expected Revenue
60% $64 million $38.4 million
35% 28 million 9.8 million
5% 18 million 0.9 million
100% $49.1 million
Value of auctioning game:
Probability Gross Revenue Expected Revenue
25% $5 million $1.25 million
35% $12 million $4.20 million
40% $16 million $6.40 million
100% $11.85 million
Value of keeping game:
Probability Gross Revenue Expected Revenue
100% -$7 million -$7.00 million
30% $49.1 million $14.73 million
25% $12 million $3.00 million
45% $1 million $0.45 million
100% $11.18 million
b) The optimal solution will be to auction the game and make $11.85 million, which is higher than $11.18 million made from keeping the game and doing the marketing and publishing.
Franchising is typically done by
O cooperatives.
O partnerships.
O LLC
O corporations
Answer:A
Explanation:
Franchising is typically done by D. corporations.
What is franchising?Franchising is a business arrangement in which franchisees are granted licenses by the franchisors to use their trademarks or business processes in carrying out their businesses.
Franchising can occur with these businesses:
Job franchiseProduct franchiseBusiness format (or process) franchise.Thus, franchising is typically done by D. corporations.
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Define your seven weakness and seven strengths with reason
Answer:
weakness
1 i am very sensitive because small things make me feel very bad
2 i cannot say no to anyone because i care about people thought
3 i cannot control my anger i have anger issue
4 i am very extra kind to everyone so many people takes advantage
5 i keep expecting many things from people and result make me sad
6 i cant be angry for a long time it is very easy for making me happy
7 i dont want to share my close person with other
During 1970, the "year of the environment," all of the following occurred except _____.
the National Oceanic Atmospheric Administration (NOAA) was founded
the Environmental Protection Agency (EPA) was founded
the Clean Air Act was enacted
the Clean Water Act was enacted
During 1970, the "year of the environment," all of the following occurred except__the Clean Water Act was enacted_[enacted on 1972].
HELPPPPP please!!
Why is presentation so important to the success of a speech?
A.
Because it is rude not to dress well for a speech
B.
Because it conveys the character of the speaker
C.
Because it is important to appear professional at all times
D.
Because the words aren't important
Answer:
B
Explanation:
I'm taking public speaking in college now dress is important because it conveys the character of the speaker.
ABC Company rents its extra office space to XYZ Company for $600 per month. On November 1, 2020, ABC Company received $3,600 rent in advance from XYZ Company for the months of November 2020, December 2020, January 2021, February 2021, March 2021, and April 2021. The adjusting entry on December 31, 2020 (the end of the fiscal year) would include:
Answer:
Debit : Rent Paid in Advance $1,200
Credit : Rent Income $1,200
Explanation:
The adjusting entry on December 31, 2020 would include:
Debit : Rent Paid in Advance $1,200
Credit : Rent Income $1,200
You need to earn 6% annul real rate of return and, in addition, you need to keep up with the annual inflation rate. Exactly 4 years ago, the expected inflation rate was 2% per year. At that time, you decided to invest in a 7-year annuity with $20,000 deposited at the end of each year. Now, right after you made the 4th deposit, the expected annual inflation rate for the next 3 years is 3% per year. To keep your investment goal of 6% real annual return and keeping up with the new inflation rate, how much more each year for the last 3 years you will need to deposit in addition to the $20,000 per year to reach that goal?
Answer:
"4,000" is the appropriate option.
Explanation:
Given:
Real interest rate,
= 6%
Inflation rate,
= 2%
Annual deposit,
= $20,000
Now,
The nominal interest rate will be:
= [tex]Real \ interest \ rate+Inflation \ rate[/tex]
= [tex]6+2[/tex]
= [tex]8[/tex] (%)
As per the annual deposit, I was making,
= [tex]20000\times 0.6[/tex]
= [tex]1200 \ every \ year[/tex]
Inflation rate rise 3% i.e.,
= [tex]2+3[/tex]
= [tex]5[/tex] (%)
Just to earn 1200, I have to:
= [tex]\frac{1200}{0.05}[/tex]
= [tex]24,000[/tex]
Thus the above is the appropriate answer.
Gary Wheeler says that in a nonunion environment, workers who have problems with the company can potentially use alternative dispute resolution processes. A union environment has a similar process called ________, where workers can protest organization actions that they think violate the collective bargaining agreement.
Answer:
the grievance procedure
Explanation:
Here are the options
picketing
fact finding
the corporate campaign
the grievance procedure
decertification
the grievance procedure is the formal way by which an employee can make a grievance or complaint known to their employers. It is a means of internal grievance resolution.
Steps to grievance procedure
the employee submits their complaint to their supervisorthe supervisor and the union representative review the case to determine if it is valid or not. if it is not valid, the grievance is discarded if it is valid, the grievance is resolvedIf the employee is not satisfied with the way the grievance is resolved, the employee can report to another person with a hierarchy. Here the union represents the employeeThe following are data on three promissory notes. Determine the missing amounts. (Round answers to 0 decimal places, e.g. 5,275. Use 360 days for calculation.) Date of Note Terms Maturity Date Principal Annual Interest Rate Total Interest (a) April 1 60 days select a maturity date $630,000 5 % $enter a dollar amount (b) July 2 30 days select a maturity date 86,400 enter percentages % $576 (c) March 7 6 months select a maturity date 136,800 9 % $enter a dollar amount
Answer:
A. Maturity Date 31-May
Total Interest $5,250
B. Maturity Date 02-Aug
Annual interest rate 8%
C. Maturity Date 07-Sep
Total Interest $6,156
Explanation:
Calculation to Determine the missing maturity dates and Total interest and rates on notes.
Date of Note Terms Maturity Date Principal Annual Interest rate Total Interest
a. 01-Apr 60 days 31-May $630,000 5% $5,250
b. 02-Jul 30 days 02-Aug 86,400 8% $576
c. 07-Mar 6 months 07-Sep 136,800 9% $6,156
Working:
A. Calculation for Total Interest and Maturity Date
Total Interest= $630,000 x 5% x 60 days / 360 days
Total Interest = $5,250
Maturity Date
April 2-30 29
May 1-31 31
Total 60 days
B. Calculation for Annual Interest rate and Maturity date
First step is to calculate the 360 days Interest
360 days Interest = $576 x 360 days / 30 days
360 days Interest = $6,912
Now let calculate the Annual interest rate
Annual interest rate = ($6,912 / 86,400) x 100
Annual interest rate= 8%
Maturity Date
July 3-31 28
August 1-2 2
Total 30 days
C. Calculation for Total Interest and Maturity date
Total Interest = 136,800 x 9% x 6 months / 12 months
Total Interest =$6,156
Maturity date
March 8 to April 7 1
April 8 to May 7 1
May 8 to June 7 1
June 8 to July 7 1
July 8 to August 7 1
August 8 to Sep 7 1
Total 6 months
Therefore the missing maturity dates and Total interest and rates on notes are:
A. Maturity Date 31-May
Total Interest $5,250
B. Maturity Date 02-Aug
Annual interest rate 8%
C. Maturity Date 07-Sep
Total Interest $6,156
You have the following information for Crane Company for the month ended October 31, 2022. Crane uses a periodic method for inventory. Date Description Units Unit Cost or Selling Price Oct. 1 Beginning inventory 50 $22 Oct. 9 Purchase 110 24 Oct. 11 Sale 90 35 Oct. 17 Purchase 90 26 Oct. 22 Sale 50 40 Oct. 25 Purchase 60 28 Oct. 29 Sale 100 40 Calculate the weighted-average cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average cost per unit Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 0 decimal place, e.g. 125.) Calculate gross profit rate under each of the following methods. (1) LIFO. (2) FIFO. (3) Average-cost. (Round answers to 1 decimal place, e.g. 51.2%)
Answer:
Crane Company
1. Weighted average cost per unit = $25.032
2. (1) LIFO (2) FIFO (3) Average-cost
Ending inventory $1,580 $1,940 $1,752
Cost of goods sold 6,180 5,820 6,008
Sales revenue $9,150 $9,150 $9,150
Gross profit 2,970 3,330 3,142
Gross profit rate 32.5% 36.4% 34.3%
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost or Selling Price Total
Oct. 1 Beginning inventory 50 $22 $1,100
Oct. 9 Purchase 110 24 2,640
Oct. 11 Sale (90) $35 $3,150
Oct. 17 Purchase 90 26 2,340
Oct. 22 Sale (50) 40 2,000
Oct. 25 Purchase 60 28 1,680
Oct. 29 Sale (100) 40 4,000
Total 310 (240) = 70 $7,760 $9,150
Weighted average cost per unit = $25.032
LIFO:
Ending inventory
= (50 * $22) + (20 * $24)
= $1,100 + $480
= $1,580
Cost of goods sold = $7,760 - $1,580 = $6,180
FIFO:l
Ending inventory:
= (60 * $28) + (10 * $26)
= $1,680 + $260 = $1,940
Cost of goods sold = $7,760 - $1,940 = $5,820
Weighted-average costs:
Ending inventory = 70 * $25.032 = $1,752
Cost of goods sold = $7,760 = $1,752 = $6,008
Explain the role of corporate in economic development of country.
Answer:
Economic Development
Explanation:
Small business as well as big companies are important drivers of economic growth and prosperity because they provide vital services, goods, and tax revenues that directly benefit the health of the community. Companies also provide opportunities and jobs, boosting the socioeconomic health of the communities where they are located.
Patrick and Mary wanted to become homeowners back in 2008 and applied for a loan from a mortgage lender. Patrick and Mary's combined income was $50,000 a year and their credit history was poor. They were approved for a mortgage loan but couldn't make the payments. This is an example of a result of _______.
The information given in the question is an example of purchasing power.
Purchasing power simply refers to goods and services that a person can be able to buy with a given amount of money that the person has.In this case, they have a combined income of $50,000 but this wasn't enough to purchase the house. This shows that they had a lower purchasing power.Assuming the house was sold for a lesser amount than $50,000, then it'll be affordable for them.Read related link on:
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The Chicken Union has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accounts Receivable is $124,000 and the Allowance for Doubtful Accounts has an unadjusted credit balance of $1,700. Net credit sales during the year were $198,000. Using the percentage of credit sales method, what is the estimated Bad Debt Expense for the year
Answer:
$9,900
Explanation:
With regards to the above, the percentage of credit sales method estimates bad debt expense by multiplying historical percentage of bad debt losses by the current period's credit sales.
Bad debt expense = Net credit sales × Bad debt loss rate
Bad debt expense = $198,000 × 0.05
Bad debt expense = $9,900
Therefore, estimated bad debt expense for the year is $9,900
Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: 20Y1, $64,000; 20Y2, $128,000; 20Y3, $288,000; 20Y4, $368,000; 20Y5, $448,000; and 20Y6, $576,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative, preferred 4% stock, $100 par, and 100,000 shares of common stock, $10 par.
Required:
Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years.
Answer:
Pecan Theatre Inc.
Annual Dividends:
Year Amount Cumulative Common Stock
Declared Arrears
20Y1, $64,000 $64,000 $96,000 $0
Per share dividends $1.60 $0
20Y2, $128,000 $128,000 $128,000 $0
Per share dividends $3.20 $0
20Y3, $288,000 $288,000 $0 $0
per share dividends $7.20 $0
20Y4, $368,000 $160,000 $0 $208,000
Per share dividends $4.00 $2.08
20Y5, $448,000 $160,000 $0 $288,000
Per share dividends $4.00 $2.88
20Y6, $576,000 $160,000 $0 $416,000
Per share dividends $4.00 $4.16
Explanation:
a) Data and Calculations:
Outstanding common stock = 100,000 shares at $10 par
Outstanding 4% cumulative preferred stock = 40,000 at $10 par
Annual preferred stock dividend = 4% * 40,000 * $100
= $160,000
Annual Dividends:
Year Amount Cumulative Common Stock
Declared Arrears
20Y1, $64,000 $64,000 $96,000 $0
Per share dividends $1.60 ($64,000/40,000) $0
20Y2, $128,000 $128,000 $128,000 $0
Per share dividends $3.20 ($128,000/40,000) $0
20Y3, $288,000 $288,000 $0 $0
per share dividends $7.20 ($288,000/40,000) $0
20Y4, $368,000 $160,000 $0 $208,000
Per share dividends $4.00 ($160,000/40,000) $2.08 ($208,000/100,000)
20Y5, $448,000 $160,000 $0 $288,000
Per share dividends $4.00 ($160,000/40,000) $2.88 ($288,000/100,000)
20Y6, $576,000 $160,000 $0 $416,000
Per share dividends $4.00 ($160,000/40,000) $4.16 ($416,000/100,000)
Nash Company purchased a computer for $8,160 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,020 salvage value. On January 1, 2021, the estimates are revised. Nash now feels the computer will be used until December 31, 2022, when it can be sold for $510. Compute the 2021 depreciation. (Round answer to 0 decimal places, e.g. 45,892.) Depreciation expense, 2021 $
Answer:
$2,397
Explanation:
Straight line method charges a fixed amount of depreciation
Depreciation Charge = (Cost - Residual Value) ÷ Estimated useful life
therefore,
Annual depreciation charge
2019
Depreciation Charge = $1,428
2020
Depreciation Charge = $1,428
2021
Depreciation Charge = ($8,160 - $1,428 - $1,428 - $510) ÷ 2
= $2,397
therefore,
Depreciation expense, 2021 is $2,397
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2017, the following data are available.
1. Sales: 20,000 units quarter 1; 22,000 units quarter 2.
2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%.
3. Fixed costs per quarter: sales salaries $10,700, office salaries $6,480, depreciation $4,520, insurance $1,990, utilities $900, and repairs expense $650.
4. Unit selling price: $25.
Prepare a selling and administrative expense budget by quarters for the first 6 months of 2017.
Answer:
Budgeted Selling and Administrative Expense are:
Quarter 1 = $75,240
Quarter 2 = $80,240
Six Months = $155,480
Explanation:
Note: See the attached excel file for the selling and administrative expense budget by quarters for the first 6 months of 2017.
In the attached excel file, the following calculations is done:
Quarter 1 sales revenue = Quarter 1 units * Unit selling price = 20,000 * $25 = $500,000
Quarter 2 sales revenue = Quarter 2 units * Unit selling price = 22,000 * $25 = $550,000
From the attached excel file, Budgeted Selling and Administrative Expense are:
Quarter 1 = $75,240
Quarter 2 = $80,240
Six Months = $155,480