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Answer:
nope im not going to the link sir im not fkn stu.pid
Explanation:
The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $88.71. The variable cost per unit is $18.36, Poseidon Swim has average fixed costs per year of $22,898. What would be the operating profit or loss associated with the production and sale of 485 swim trunks?
Jasmine Corporation purchased inventory costing $125,000 and sold 75% of the goods for $163,750. All purchases and sales were on account. Jasmine later collected 25% of the accounts receivable. Assume that sales returns are nonexistent.
1. Journalize these transactions for Jasmine, which uses the perpetual inventory system.
2. For these transactions, show what Jasmine will report for inventory, revenues, and expenses on its financial statement at the end of the month. Report gross profit on the appropriate statement. Assume beginning inventory is $0.
Answer:
Part 1
Purchase journal
Debit : Merchandise Inventory $125,000
Credit : Accounts Payable $125,000
Sales journal
Debit : Accounts Receivable $163,750
Debit : Cost of Sales ($125,000 x 75%) $93,750
Credit : Sales Revenue $163,750
Credit : Inventory $93,750
Collection of Payments journal
Debit : Cash ($163,750 x 25%) $40,938
Credit : Accounts Receivable $40,938
Part 2
Inventory = $31,250
revenues = $163,750
expenses = $93,750
gross profit = $70,000
Explanation:
inventory = Purchases - Cost of sales
= $125,000 - $93,750
= $31,250
revenues = Sales to Customers paid up or not
= $163,750
expenses = Cost of sales
= $93,750
gross profit = Sales - Cost of sales
= $163,750 - $93,750
= $70,000
The employer mandate of the PPACA requires that :_______
a. every firm must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
b. every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
c. every firm with fewer than 50 full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
d. every firm with 500 or more employees must establish their own on-site medical facilities to provide employees with basic medical care.
Answer:
b. every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
Explanation:
An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.
Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).
Hence, while an employer may be the owner of a business firm or company, an employee is a subordinate employed to provide unwavering services to the employer while also, being professional and diligent at all times.
The employer mandate of the Patient Protection and Affordable Care Act (PPACA) requires that every firm with 50 or more full-time employees must purchase health insurance for their full-time employees or pay a $2,000 fine per employee.
Time line of cash dividend. Camelot Manufacturing, Inc. issues the following press release: "Camelot Manufacturing will pay a quarterly dividend of $1.00 per share on the 20th of the following month to record holders as of the 20th of this month." The company made this announcement on September 3, 2014. Draw a time line of the dates around this dividend payment with a two-day settlement for stock transactions. Label the declaration date, the ex-date, the record date, and the payment date.
Answer:
Declaration date = Sep 3, 2014
Ex - date = Sep 18, 2014
Record date = Sep 20, 2014
Payment date = Oct 20, 2014
Explanation:
Declaration date = This is the date of announcement of dividend.
Ex - date = The expiry date is 2 days before the record date.
Record date = the record date is the date on which share holders on record becomes eligible for dividend payment.
Payment date = This is the date of dividend payment.
Here,
Declaration date = Sep 3, 2014
Ex - date = Sep 18, 2014
Record date = Sep 20, 2014
Payment date = Oct 20, 2014
You are in charge of reordering gasoline for your company car fleet. You have decided to use a periodic inventory control system, and calculated your economic order quantity (EOQ) to be 4800 gallons. Your company is open 50 weeks per year and you look back at historic demand and find that you have averaged using 160 gallons per day with a standard deviation of demand of 35 gallons per day. The lead time from when you place an order until when it is delivered is 2 weeks. Assume the company operates 7 days per week. What should be the optimal time between orders (P) based on the economic ord
Answer:
The answer is "30 days".
Explanation:
Please find the complete question in the attached file.
per period demand [tex]d=160[/tex]
per year periods [tex]o=350[/tex]
Annual demand
Order quantity
Orders per year
The time between orders
BenjaminCompanyproducesproductsC,J,andRfromajointproductionprocess.Eachproductmaybesold at the split-off point or processed further. Joint production costs of $95,000 per year are allocated to the productsbasedontherelativenumberofunitsproduced.DataforBenjamin'soperationsforlastyearfollow:
Answer:
Product C and J only should processed further.
Explanation:
A project from a joint process should be processed further if additional sales revenue from further processing exceeds further processing cost.
So we will compare the net income i.e additional sales revenue minus sales further processing cost less for the three products as follows:
Net income
Product C : (100,000-75,000)-20,000 = $5,000
Product J: (115,000-70,000)-36,000= $9,000
Product R: (55,000-46,500) - 10,000=$(1,500)
Product C and J only should processed further.
The following items are relevant to the preparation of a statement of cash flows for Tropical Products Inc.
1. Sale of common stock, $500,000.
2. Retirement of bonds payable, $355,000.
3. Purchase of land, $10,000.
4. Sale of equipment for $24,000, at a loss of $5,000.
5. Purchase of equity securities (not held in a trading account), $10,000.
6. Declaration of cash dividends, $40,000.
7. Loan of $30,000 resulting in a note receivable, non-trade.
8. Purchase of a patent, $20,000.
9. Proceeds from the issuance of a short-term nontrade note, $10,000.
a. Determine the amount of net cash flows that would be reported in the investing section of a statement of cash flows.
b. Determine the amount of net cash flows that would be reported in the financing section of a statement of cash flows.
Answer and Explanation:
The computation is shown below;
1. Cash flow from investing activities
Purchase of land, -$10,000.
Sale of equipment $24,000
Purchase of equity securities -$10,000
Purchase of patent -$20,000
Loan in note receivable non trade -$30,000
Net cash used by investing activities -$46,000
2. Cash flow from financing activities
Sale of common stock, $500,000.
Less Retirement of bonds payable, $355,000
Proceeds from the issuance of a short-term nontrade note, $10,000.
Net cash provided by financing activities $155,000
Bluebird, Inc., does not provide its employees with any tax-exempt fringe benefits. The company is considering adopting a hospital and medical benefits insurance plan that will cost approximately $9,000 per employee. To adopt this plan, the company may have to reduce salaries and/or lower future salary increases. Bluebird is in the 25% (combined Federal and state rates) bracket. Bluebird also is responsible for matching the Social Security and Medicare taxes withheld on employees' salaries (at the full 7.65% rate). The hospital and medical benefits insurance plan will not be subject to the Social Security and Medicare taxes, and the company is not eligible for the small business credit for health insurance. The employees generally fall into two marginal tax rate (MTR) groups.
Income Tax Social Security and Medicare Tax Total
0.15 0.0765 0.2265
0.35 0.0145 0.3645
The company has asked you to assist in its financial planning for the hospital and medical benefits insurance plan by computing the following:
Required:
a. How much taxable compensation is the equivalent of $9,000 of exempt compensation for each of the two classes of employees?
b. What is the company’s after-tax cost of the taxable compensation computed in part (a)?
c. What is the company’s after-tax cost of the exempt compensation?
d. Briefly explain your conclusions from the preceding analysis.
Answer:
a. The Before Tax Compensation for each of the two classes of employees are as follows:
Low (0.15) = $11,635.42
High (0.35) = $14,162.08
b. The Employer's after tax cost of taxable compensation for each of the two classes of employees are as follows:
Low (0.15) = $9,394.15
High (0.35) = $10,775.57
c. The Employer's after tax cost of exempt benefit for each of the two classes of employees are as follows:
Low (0.15) = $6,750
High (0.35) = $6,750
d. The cost in employer's after tax cost of exempt benefit will be less than employer's after tax cost of taxable compensation.
Explanation:
a. How much taxable compensation is the equivalent of $9,000 of exempt compensation for each of the two classes of employees?
Note: See part a of the attached excel file for the calculation of Before Tax Compensation for each of the two classes of employees.
From part a of the attached excel, the Before Tax Compensation for each of the two classes of employees are as follows:
Low (0.15) = $11,635.42
High (0.35) = $14,162.08
b. What is the company’s after-tax cost of the taxable compensation computed in part (a)?
Note: See part b of the attached excel file for the calculation of Employer's after tax cost of taxable compensation.
From part b of the attached excel, the Employer's after tax cost of taxable compensation for each of the two classes of employees are as follows:
Low (0.15) = $9,394.15
High (0.35) = $10,775.57
c. What is the company’s after-tax cost of the exempt compensation?
Note: See part c of the attached excel file for the calculation of Employer's after tax cost of exempt benefit.
From part c of the attached excel, the Employer's after tax cost of exempt benefit for each of the two classes of employees are as follows:
Low (0.15) = $6,750
High (0.35) = $6,750
d. Briefly explain your conclusions from the preceding analysis.
Comparing employer's after tax cost of exempt benefit in comparison and employer's after tax cost of taxable compensation, it can be seen that cost in employer's after tax cost of exempt benefit will be less than employer's after tax cost of taxable compensation.
Chesapeake Inc. acquired a registered trademark for $600,000. The trademark has a remaining legal life of 5 years but can be renewed every 10 years for a nominal fee. Chesapeake does not expect to renew the acquired trademark when the legal life is over. What amount of amortization expense should Chesapeake record for the trademark in the current year?
a. $0
b. $15,000
c. $40,000
d. $120,000
Answer:
d. $120,000
Explanation:
Amortization expense = Cost ÷ Estimated useful life
therefore
Amortization expense = $600,000 ÷ 5 = $120,000
Note ; In this case the legal life is the same as the useful life.
Foods Galore is a major distributor to restaurants and other institutional food users. Foods Galore buys cereal from a manufacturer for $20.00 per case. Annual demand for cereal is 200,000 cases, and the company believes that the demand is constant at 800 cases per day for each of the 250 days per year that it is open for business. Average lead time from the supplier for replenishment orders is eight days, and the company believes that it is also constant. The purchasing agent at Foods Galore believes that annual inventory carrying cost is 10 percent and that it costs $40.00 to place an order.
How many cases of cereal should Foods Galore order each time it places an order? What is the total annual inventory cost if you order based on your Economic Order Quantity? (Sum of annual product purchasing cost, holding cost, and ordering cost). What is the total annual inventory cost if Foods Galore orders 10,000 each order at $18 per case? (Sum of annual product purchasing cost, holding cost, and ordering cost)
Answer:
The appropriate solution is:
(a) 2828 cases each time
(b) $4005656.85
(c) $3609800
Explanation:
The given values are:
Annual demand,
D = 200,000 cases
Per case cost,
C = $20
Carrying host,
H = [tex]10 \ percent\times 20[/tex]
= $[tex]2[/tex]
Ordering cost,
S = $40
(a)
The economic order quantity will be:
⇒ [tex]Q^*=\sqrt{(\frac{2DS}{H} )}[/tex]
On substituting the values, we get
[tex]=\sqrt{[\frac{(2\times 200000\times 40)}{2} ]}[/tex]
[tex]=\sqrt{\frac{16000000}{2} }[/tex]
[tex]=2828[/tex]
(b)
According to the question,
The annual ordering cost will be:
= [tex](\frac{D}{Q^*}) S[/tex]
= [tex](\frac{200000}{2828}) 40[/tex]
= [tex]2828.85[/tex] ($)
The annual carrying cost will be:
= [tex](\frac{Q^*}{2})H[/tex]
= [tex](\frac{2828}{2} )2[/tex]
= [tex]2828[/tex] ($)
The annual purchase cost will be:
= [tex]D\times C[/tex]
= [tex]200000\times 20[/tex]
= [tex]4000000[/tex] ($)
Now,
The total inventory cost will be:
= [tex]2828.85+2828+4000000[/tex]
= [tex]4005656.85[/tex] ($)
(c)
According to the question,
Order quantity,
Q = 10000 cases
Per case cost,
C = $18
Carrying cost,
H = [tex]10 \ percent\times 18[/tex]
= [tex]1.8[/tex]
The annual ordering cost will be:
= [tex](\frac{D}{Q} )S[/tex]
= [tex](\frac{200000}{10000} )40[/tex]
= [tex]800[/tex] ($)
The annual carrying cost will be:
= [tex](\frac{Q}{2} )H[/tex]
= [tex](\frac{10000}{2} )1.8[/tex]
= [tex]9000[/tex] ($)
The annual purchase cost will be:
= [tex]D\times C[/tex]
= [tex]200000\times 18[/tex]
= [tex]3600000[/tex]
Now,
The total cost of inventory will be:
= [tex]800+9000+3600000[/tex]
= [tex]3609800[/tex] ($)
Suppose we want to estimate the effects of alcohol consumption (alcohol) on college grade point average (cGPA). In addition to collecting information on grade point averages and alcohol usage, we also obtain attendance information (say, percentage of lectures attended, called attend). A standardized test score (say, SAT) and high school GPA (hsGPA) are also available
(i) Should we include attend along with alcohol as explanatory variables in a multiple regression model? (Think about how you would interpret beta-alcohol.)
(ii) Should SAT and hsGPA be included as explanatory variables? Explain.
Answer: See explanation
Explanation:
(i) Should we include attend along with alcohol as explanatory variables in a multiple regression model? (Think about how you would interpret beta-alcohol.)
No. We should not include attend along with alcohol as explanatory variables in a multiple regression model. This is due to the fact that a high degree of negative correlation exists between attend along with alcohol and including both of them will bring about multi collinearity.
(ii) Should SAT and hsGPA be included as explanatory variables? Explain.
Yes. SAT and hsGPA should be included as explanatory variables. This is important to overcome bias of the model.
(i) So according to me, my answer will be No. We should not include Attend along with alcohol as explanatory variables in multiple factors of the regression model. This is due to the fact that is a high degree of negative correlation exists between the attend also, along with alcohol, and including both of them will bring about multicollinearity.
(ii) When the variables of SAT AND hsGPA my answer will be Yes. SAT and HSDPA should be included as explanatory variables. This is most important to overcome the bias of the model.
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The chief advantage of a decentralized organizational structure is to: A. put decision-making authority in the hands of those closest and most knowledgeable about the situation. B. make it easy to fix accountability when company performance targets are not met. C. increase productivity on the part of the workforce. D. enhance cross-unit coordination and capture of strategic fits. E. create a collegial, collaborative culture in which teamwork is a core value and decisions are made on the basis of consensus.
Answer:
A. put decision-making authority in the hands of those closest and most knowledgeable about the situation.
Explanation:
Decentralisation reduces the number of people participating in day-to-day decision-making. As a result, decision-making authority was transferred to those who were closest to the case and this is the main advantage of decentralized organizational structure.
Hence, option a is correct answer for given situation.
On July 1, 20X1, Mirage Company issued $250 million of bonds with an 8% coupon interest rate. The bonds mature in 10 years and pay interest semiannually on June 30 and December 31 of each year. The market rate of interest on July 1, 20X1, for bonds of this risk class was 8%. Mirage closes its books on December 31. Ignore income taxes.
Required:
a. At what price were the bonds issued?
b. On July 1, 2019, the market interest rate for bonds of this risk class is 6%. What is the fair value of the bonds on this date?
c. Suppose that 50% of the bonds were repurchased for cash on July 1, 2019, at the market price. What journal entry would the company make to record this partial retirement?
Answer: See explanation
Explanation:
a. At what price were the bonds issued?
The bonds were issued at $250 million since the issue price will have thesame value as the face value in this case.
b. On July 1, 2019, the market interest rate for bonds of this risk class is 6%. What is the fair value of the bonds on this date?
The fair value of the bond on this date will be:
= {$250,000,000 × 4% × [(1-1.03)^-16]0.03} + {$250,000,000 × (1/1.03)^-16}
= $281402755
c. Suppose that 50% of the bonds were repurchased for cash on July 1, 2019, at the market price. What journal entry would the company make to record this partial retirement?
The journal entry will be:
July 1 ,2019
Debit Bond payable $250,000,000/2 = $125,000,000
Debit loss on bond redemption = $140,701,378 - $125,000,000 = $15,701,378
Credit Cash $281402755 × 50% = $140,701,378
(To record bond payable redemption)
____ is the measure of how much money you can make off each sale.
Answer:
Profit or net profit is the answer.
Explanation:
An even numbered card is chosen randomly from a set of cards labeled with the numbers 1 through 8. A second even numbered card is chosen after the first card is replaced. Are these dependent or independent events?
a.
dependent
b.
independent
Answer:
independent. This is a fun question. I never thought about how I would explain it before.
Explanation:
Can you think of anything that might influence the second even card being drawn?
Let's make the question a whole lot easier. Suppose you have a coin and it's a fair one just coming from the mint. Suppose you toss it and you get either heads or tails. Can you think of a reason why you should get the same thing again or put another way, can you guess what you are going to get next?If you can't then the tosses are independent of each other. You haven't replaced anything, like once you get a tails, you weight the coin so you can never get tails again. That would be a dependent event.If you can guess consistently, you better submit a written paper to a math journal.Now go back your your question. You replaced the card. The odds are the same as for the first toss. Is there anything that has changed your mind about being able to guess.
You can't guess, so the events are independent.
Why is it important to reconcile your bank statements?
Answer:
When you reconcile your business bank account, you compare your internal financial records against the records provided to you by your bank. A monthly reconciliation helps you identify any unusual transactions that might be caused by fraud or accounting errors, and the practice can also help you spot inefficiencies.
Answer:
all of the above
Explanation:
how can technological innovation help a company become globalised
Answer: Technology is the vital force in the modern form of business globalization. ... Technology has helped us in overcoming the major hurdles of globalization and international trade such as trade barrier, lack of common ethical standard, transportation cost and delay in information exchange, thereby changing the market place.
Explanation:
Determine aggregate expenditures (AE) in this economy when real GDP (Y) is equal to $1,500 billion, $2,000 billion, and $2,500 billion.
When Y = $1,500 billion, AE =
billion.
When Y = $2,000 billion, AE =
billion
When Y = $2.500 billion, AE =
billion.
Answer:
a) When Y = $1,500 billion, AE =$1050 billion
b)When Y = $2,000 billion, AE = $1400 billion
c) When Y = $2.500 billion, AE =$1750 billion
Explanation:
As we know,
Yd = Y- T
Y = national income (or GDP)
T = Tax Revenues = 0.3Y
a) When Y = $1,500 billion, AE = $1,500 -0.3*$1,500 = $1050 billion
b) When Y = $2,000 billion, AE =$2,000 - 0.3*$2,000 = $1400 billion
c) When Y = $2.500 billion, AE = $2.500 - 0.3 * $2.500 = $1750 billion
Assuming the economy to operate in equilibrium, the aggregate expenditure model explains that GDP is equal to the Aggregate expenditure. Therefore, the solutions are:
Y = $1,500 billion, AE = $1,500 billion.Y = $2,000 billion, AE = $2,000 billion.Y = $2,500 billion, AE = $2,500 billion.What is the aggregate expenditure model?The aggregate expenditure model explains the relationship between GDP and planned spending. The model states that:
[tex]\rm GDP = Planned \:spendings[/tex]
Therefore the Aggregate expenditure for the real GPDs is:
Y = $1,500 billion, AE = $1,500 billion.Y = $2,000 billion, AE = $2,000 billion.Y = $2,500 billion, AE = $2,500 billion.Learn more about the aggregate expenditure model here:
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Using relevant examples discuss the five most important variables that may cause the market for
demand curve for labor to shift?
I will give brainliest
Answer:
An increase or decrease in the quantity demanded is shown as movement along the demand curve and is due to a change in price as shown in the graph on the prior page. An increase or decrease in demand is shown by a shift in the demand curve. A change in the demand of a good or service is caused by something other than a change in the price of a good or service.
Explanation:
When the demand curve shifts upward and to the right, it is indicative of an increase in demand
When the demand curve shifts downward and to the left, it is indicative of an increase or decrease in demand.
Demand: Demand Explanation
increases or decreases?
Population increases I There are more opportunities to buy
and sell.
Population decreases D There are fewer opportunities to
buy and sell.
Increase in most people I When income goes up, people have a s’ income greater ability to buy.
Decrease in most peoples’ D When income goes down, people have a
income diminished ability to buy.
Price of substitute increases I As the price of a substitute increases,
the demand for the product under study
increases. (If consumers have substituted
fish for meat, and the price of fish goes
up, the demand for meat will increase.)
"Minimum wage laws cause unemployment because the legal minimum wage is set" 9) A) above the market wage, causing labor demand to be greater than labor supply. B) below the market wage, causing labor demand to be greater than labor supply. C) too low. D) below the market wage, causing labor demand to be less than labor supply. E) above the market wage, causing labor demand to be less than labor supply.
Answer: E) above the market wage, causing labor demand to be less than labor supply.
Explanation:
Minimum wage simply refers to the lowest wage that employers can pay their workers. Minimum wage is a form of price floor which means that it's typically higher than the equilibrium or market wage.
In this case, since it's higher than the market wage, there'll be an increase in the supply of labor as those that are unemployed will be willing to work duw to the increase in the wage rate.
On the other hand, there'll be a reduction in the demand for labor as employers typically will want to reduce cost and won't be interested in employing more workers.
Therefore, the correct option is E
Hinck Corporation reported net cash provided by operating activities of $361,200, net cash used by investing activities of $150,800 (including cash spent for capital assets of $206,000), and net cash provided by financing activities of $78,900. Dividends of $126,900 were paid.
Answer:
$28,300
Explanation:
Missing word: "Calculate free cash flow."
Free cash flow = Operating cash flow - Capital expenditures - Dividends
Free cash flow = $361,200 - $206,000 - $126,900
Free cash flow = $28,300
So, the Free cash flow of Hinck Corporation is $28,300.
The excess return is computed by ________ the average return for the investment. Group of answer choices subtracting the inflation rate from adding the inflation rate to subtracting the average return on the U.S. Treasury bill from adding the average return on the U.S. Treasury bill to subtracting the average return on long-term government bonds from
Answer:
The answer is "subtracting the average return on the U.S. Treasury bill from".
Explanation:
By subtracting the average annual return on the US Treasury bill form of the investment's average return, that excess return is calculated, when the risk premium is another term for excess return. After subtracting the risk-free return from its investment's annualized value, the risk premium is calculated its avg treasury bond investment is a risk-free portfolio.
Waterways has a sales mix of sprinklers, valves, and controllers as follows.
Annual expected sales:
Sale of sprinklers 460,000 units at $26.50
Sale of valves 1,480,000 units at $11.20
Sale of controllers 60,000 units at $42.50
Variable manufacturing cost per unit
Sprinklers $13.96
Valves $7.95
Controllers $29.75
Fixed manufacturing overhead cost (total) $760,000
Variable selling and administrative expenses per unit:
Sprinklers $1.30
Valves $0.50
Controllers $3.41
Fixed selling and administrative expenses (total) $1,600,000
A) Determine the sales mix based on unit sales for each product.
B) Using the annual expected sales for these products, determine the weighted-average unit contribution margin for these three products.
C) Assuming the sales mix remains the same, what is the break-even point in units for these products?
Answer:
A.
Sales Mix is 23 : 74 : 3
B.
$567.17
C.
sprinklers = 95,726 units
valves = 303,826 units
controllers = 12,486 units
Explanation:
the sales mix based on unit sales for each product
sprinklers = 460,000 units
valves = 1,480,000 units
controllers = 60,000 units
this can then be expressed as :
460,000 : 1,480,000 : 60,000
expressed in lowest terms as :
23 : 74 : 3
the weighted-average unit contribution margin for these three products.
weighted-average unit contribution margin is the sum of contribution per units with the mix applied to each contribution margin.
unit contribution margin are
sprinklers = $12.54
valves = $3.25
controllers = $12.75
weighted-average unit contribution margin = $12.54 x 23 + $3.25 x 74 + $12.75 x 3 = $567.17
the break-even point in units for these products
break-even point in units = Fixed Cost ÷ Contribution per unit
= ($760,000 + $1,600,000) ÷ $567.17
= 4,162 units
Multiplying this with each mix we have :
sprinklers = 95,726 units
valves = 303,826 units
controllers = 12,486 units
Budgeted Income Statement Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of $19,700,000 and cost of goods sold of $10,835,000. Advertising is a key part of Coral Seas' business strategy, and total marketing expense for the year is budgeted at $3,546,000. Total administrative expenses are expected to be $788,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income.
Required:
Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. Enter your answers in dollars and not in millions.
Answer:
The budgeted net income for the coming year is $2,718,600.
Explanation:
The budgeted income statement for Coral Seas Jewelry Company for the coming year can be constructed as follows:
Coral Seas Jewelry Company
Budgeted Income Statement
For the Coming Year
Details Amount ($)
Sales 19,700,000
Cost of Goods Sold (10,835,000)
Gross Margin 8,865,000
Marketing Expenses (3,546,000)
Administrative Expenses (788,000)
Operating income 4,531,000
Income Tax (40%) (1,812,400)
Net Income 2,718,600
Akers Company sold bonds on July 1, 20X1, with a face value of $100,000. These bonds are due in 10 years. The stated annual interest rate is 6% per year, payable semiannually on June 30 and December 31. These bonds were sold to yield 8%. By July 1, 20X2, the market yield on these bonds had risen to 10%.
Required:
What was the bonds' market price on July 1 20x2?
Answer:
$76,620.83
Explanation:
According to the scenario, computation of the given data are as follows
Future Value (FV) = $100,000
Rate of interest = 10% yearly
Rate of interest (Rate) = 10%÷ 2 = 5% semiannually
Number of period (Nper) = 9 × 2 = 18
Face value = $100,000
Payment (pmt) = $100,000 × (6%÷2) = $3,000
By putting the value in excel present value formula, we get,
PV = $76,620.83
Attachment is attached below
Crane Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/20 $354,700 $331,550 12/31/21 413,510 394,540 (a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method.
Answer and Explanation:
a. The journal entries are shown below
Cost of goods sold ($354,700 - $331,550) $23,150
To Allowance for reduction in inventory to NRV $23,150
(Being allowance for reduction is recorded)
Allowance for reduction in inventory to NRV ($23,150 - ($413,510 - $394,540)) $4,180
To Cost of good sold $4,180
(being recording of the previous loss)
These two entries should be recorded at LCNRV method
In the open economy macroeconomic model, the amount of dollars demanded in the market for foreign-currency exchange at a given real exchange rate increases if a. either U.S. imports or exports increase. b. either U.S. imports or exports decrease. c. either U.S. imports increase or U.S. exports decrease. d. either U.S. imports decrease or U.S. exports increase.
Answer:
d. either U.S. imports decrease or U.S. exports increase
Explanation:
International trade occurs when countries buy and sell between themselves. This results from one country's comparative advantage in producing a good over other countries.
As a result when a country exports a lot of goods it's currency is in high demand. This is because the other country has to buy in the home country's currency, so large volume of export means large demand for the country's currency.
It also follows that when it's imports decreases it's currency will also be in high demand since less of it is being given to buy foreign goods.
Stormy Corporation has two service departments (S1 and S2) and two production departments (P1 and P2), and uses the step-down method of cost allocation. Management has determined that S1 provides more service to the firm than S2, and has decided that the number of employees is the best allocation base to use for S1. The following data are available:
Department Number of Employees
S1 10
S2 20
P1 50
P2 70
Which of the following statements is (are) true if S1 and S2 have respective operating costs of $280,000 and $350,000?
Multiple Choice
A. S2 should allocate a portion of its $350,000 cost to S1.
B. S1's cost should be allocated (i.e., spread) over 140 employees.
C. S1's cost should be allocated (i.e., spread) over 150 employees.
D. S2 should allocate a total of $390,000 to P1 and P2.
E. Both S1's cost should be allocated (i.e., spread) over 140 employees and S2 should allocate a total of $390,000 to P1 and P2.
Answer:
E. Both S1's cost should be allocated (i.e., spread) over 140 employees and S2 should allocate a total of $390,000 to P1 and P2.
Explanation:
As S1 gives more service, So it would be allocated first
Here
S1 cost of $280,000 would be allocated to S2 P1 and P2 based on number of employees
The total employees in S2 P1 and P2 is
= 20 + 50 + 70
= 140
And, the Cost to be allocated per employee is
= $280,000 ÷ 140
= $2,000
Now cost received by S2 is
= $2,000 × 20
= $40000
And, the cost received by P1 is
= $2,000 × 50
= $100,000
And, the cost received by P2 is
= $2,000 × $70
= $140,000
Now
S2 contains total cost of
= $350,000 + $40,000 (from S1)
= $390,000
So this would be allocated to P1 and P2 as S1 has already allocated
Hence, option D is correct
Data for Divisions A, B, C, D, and E are as follows:
Div.
Sales
Income from
Operations
Inv.
Assets
Rate of
Return
on Inv.
Profit
Margin
Invest.
Turnover
A
(1)
$35,000
$200,000
(2)
(3)
1.6
B
$455,000
(4)
$284,375
16%
(5)
(6)
C
$525,000
$73,500
(7)
(8)
(9)
1.2
D
$800,000
(10)
(11)
(12)
13.0%
2.5
E
(13)
(14)
$250,000
(15)
16.0%
2.0
(a) Determine the missing items, identifying each by number.
(b) Which division is most profitable in terms of income from operations?
(c) Which division is most profitable in terms of rate of return on investment?
Round percentage values to one decimal point.
Answer:
1. A
2. B WHICH DIVISONS IS MUST PROFITABLE IN TERM OF RACE OF TURN ON ENVRONMENT