Answer:
$257,800
Explanation:
According to the scenario, calculation of the given data are as follows,
Inventory on Jan. 30,2021 = $226,000
Sales = $606,000
Purchase = $456,000
Gross profit = 30% × $606,000 = $181,800
So, we can calculate the inventory loss by using following formula,
Inventory loss = COG for sale - COG sold
= ($226,000 + $456,000) - ($606,000 - $181,800)
= $682,000 - $424,200
= $257,800
HURRY IM BEING TIMED
Most loans are paid back in __________ installments.A. daily. weekly. monthly. yearly
Answer:
monthly as far as I know
It should be noted that most loans are paid back in monthly basis to the financial institution.
What is loan?A loan serves as the sum of money that is been borrowed by individuals or companies from financial institutions or banks.
This is usually done to financially manage planned one business, however, most loans are paid back in monthly basis.
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The Waverly Company has budgeted sales for the year as follows: The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,000 units. Scheduled production for the second quarter is (in units): A. 17,500 units. B. 16,500 units. C. 15,000 units. D. 13,000 units.
The question is incomplete. The complete question is as follows,
The Waverly Company has budgeted sales for the year as follows:
Quarter sales in unit
1=12,000
2=14,000
3=18,000
4=16,000
The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,000 units. Scheduled production for the second quarter (in units) is:
a.17,500 units.
b.16,500 units.
c.15,000 units.
d.13,000 units.
Answer:
Production = 15000 Units
Option C is the correct answer
Explanation:
To calculate the scheduled production for the second quarter, we first need to find the opening and ending inventory for the third quarter. The ending inventory for each quarter will become the opening inventory for next quarter. It is mentioned in the question that the ending inventory in each quarter is equal to 25% of the next quarter's budgeted sales. Then,
Ending Inventory First Quarter = 0.25 * 14000 = 3500 units
Ending Inventory Second Quarter = 0.25 * 18000 = 4500 units
The production of units in second quarter can be calculated as follows,
Budgeted Sales = Opening Inventory + Production - Closing Inventory
14000 = 3500 + Production - 4500
14000 + 4500 - 3500 = Production
Production = 15000 Units
Skysong, Inc. reported net income of $194,500 for 2020. Skysong also reported depreciation expense of $47,500 and a loss of $6,200 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $18,200 for the year, a $20,200 increase in accounts payable, and a $5,000 decrease in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method.
Answer:
Net cashflow from operating activities =$271,400
Explanation:
The cash flow statement is a financial statement that provides information about the sources and the usage of cash during a particular accounting period usually a year.
It provides the cash inflow and outflows under three (3 ) categories of activities operating investing, financing.
The net operating activities section of the cash flow is prepared below:
$
Net income 194,500
Add Depreciation expense 47,500
Add Loss on disposal 6,200
Add Decrease in account receivable 18,200
Add Increase in accounts payable 5,000
Net cashflow from operating activities 271,400
Sable, Inc. has budgeted direct materials purchases of $400,000 in March and $500,000 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted: Wages expense $120,000 Purchase of office equipment 200,000 Selling and administrative expenses 126,000 Depreciation expense 18,000 Compute the amount of budgeted cash disbursements for April.
Answer:
$906,000
Explanation:
Cash disbursements for April.
Purchases - 60 % $300,000
Purchases - 40 % $160,000
Wages expense $120,000
Purchase of office equipment $200,000
Selling and administrative expenses $126,000
Total $906,000
therefore,
the amount of budgeted cash disbursements for April is $906,000
An amount for which of the following accounts would not appear in the Balance Sheet columns of the end-of-period spreadsheet?
a. Terry James, Drawing and Unearned Revenue
b. Service Revenue
c. Terry James, Drawing
d. Unearned Revenue
Answer:
Service revenue
Explanation:
Service revenue does not appear on a balance sheet. It appears on an income statement.
Question 2 of 10 What is the main advantage of having a skill set with a high market value? O A. Workers are more productive per hour using those skills. O B. Worker organizations have a major need for those skills. O C. Employers are willing to pay more for those skills. O D. There are fewer regulations restricting those skills.
Answer:
employees are willing 2 pay more for those skills
Explanation:
a p e x <3
You are auditing a bank, and someone provides you with an anonymous tip that an employee is embezzling money from the bank. You decide to investigate the allegation Your interviews with other bank employees confirm that the suspected embezzler has been acting very strange lately. Some employees have seen the employee crying in the bathroom and acting strange in other ways. The bank recently downsized due to poor economic growth, yet the suspect recently bought a new Lexus. Based on some "helpful" hints from bank employees and through your own investigation, you discover that the mortgage taken out by the suspect three years ago for his personal home has recently been paid in full After calculating the suspect's net worth, you deter- mine that he has about $249,000 in income from unknown sources this year alone.
Required:
a. What are possible explanations for why the suspect (1) is experiencing emotional changes and (2) has had an increase in unknown income?
b. Can you conclude from these facts that the suspect has indeed been committing fraud?
Solution :
a). The suspect may experience some emotional changes that are not necessarily due to a scandal or scam. We need to establish that the proper figures and facts are to be analyzed before reaching the conclusion. But however, the primary conclusion is that something is going on on the suspect's mind that needs to be further dealing. (2) increment in the income needs to be validated and also proper root cause of the changes should be analyzed.
b). No from the above facts we cannot conclude that the suspect had committed financial frauds. For this a full proof validation of the facts and the evidences are required for a solid conclusion for helding the suspect for committing financial frauds. Hence further investigation is needed for deriving a conclusion.
Finn Corporation produces inflatable rafts for recreational use. The company has heard about lean accounting and is anxious to find out more about the system, to determine whether it will help streamline its operations and cut costs.
The company has hired you as a consultant to help them implement their lean accounting program, and also to assist with recreating some data lost in a recent computer mishap.
This year, Finn Corporation implemented programs designed to assess the costs of quality for the company. However, the company recently suffered a data loss, and some of its records have been either partially or completely erased. The accounting intern for Finn Corporation has located a copy of a recent cost of the quality report, shown below, but the quality activity analysis used to create the report has been lost.
Cost of Quality Report
Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales
Prevention $172,800.00 60.0% 14.4%
Appraisal 51,840.00 18.0 4.3
Internal failure 37,440.00 13.0 3.1
External failure 25,920.00 9.0 2.2
Total $288,000.00 100.0% 24.0%
As mentioned on the Cost of Quality Report panel, Finn Corporation recently suffered a data loss, and some of its records have been lost. After reviewing the Cost of Quality Report panel, recreate the quality activity analysis in the table below from which the cost of the quality report was created.
Quality Activity Analysis
1 Rework
2 Inspecting incoming raw materials
3 Warranty work
4 Process improvement effort
5 Total $288,000.00
Answer:
Rework-Internal Failure Cost $37,440
Inspecting incoming raw materials-Prevention $172,800
Warranty work-External Failure Cost $25,920
Process Improvement effort-Appraisal $51,840
Total activity cost $288,000
Explanation:
Calculation to recreate the quality activity analysis
QUALITY ACTIVITY ANALYSIS
Quality Cost classification Activity Cost
Rework-Internal Failure Cost $37,440
($288,000*13%)
Inspecting incoming raw materials-Prevention $172,800 ($288,000*60%)
Warranty work-External Failure Cost $25,920 ($288,000*9%)
Process Improvement effort-Appraisal $51,840 ($288,000*18%)
Total activity cost $288,000
($37,440+$172,800+$25,920+$51,840)
Therefore the quality activity analysis recreation are :
Rework-Internal Failure Cost $37,440
Inspecting incoming raw materials-Prevention $172,800
Warranty work-External Failure Cost $25,920
Process Improvement effort-Appraisal $51,840
Total activity cost $288,000
At the beginning of his current tax year, David invests $13,410 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 25 years. David receives $540 in interest ($270 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 3.4 percent. (Round your intermediate calculations to the nearest whole dollar amount.) a. How much interest income will he report this year if he elects to amortize the bond premium
Answer:
The amount of income that David will report this year if he elects to amortize the bond premium is $455.94.
Explanation:
This can be calculated as follows:
Interest income = Carrying value of the bond * Yield to maturity…………….. (1)
Where;
Carrying value of the bond = $13,410
Yield to maturity = 3.4%
Substituting the values into equation (1), we have:
Interest income = $13,410 * 3.4% = $455.94
Therefore, the amount of income that David will report this year if he elects to amortize the bond premium is $455.94.
Sycamore Company, which expects to start operations on January 1, 2014, will sell digital cameras in shopping malls. Sycamore has budgeted sales as indicated in the following table. The company expects a 11 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March.
Required:
a. Complete the sales budget by filling in the missing amounts.
Sales January February March
Cash sales $47,000
Sales on account 103,000
Total budgeted sale $150,000
b. Determine the amount of sales revenue Sycamore will report on its first quarter pro forma income statement.
Answer:
a. Sales January February March
Cash sales $47,000 $52,170 $57,908.7
Sales on account $103,000 $114,330 $126,906.3
Total budgeted sales $150,000 $166,500 $184,815
Workings
February Cash sales: 47,000*11% = $47,000 + $5170 = $52,170
February Sales on account: $103,000*11% = $103,000 + $11,330 = $114,330
March Cash sales: $52,170 * 11% = $52,170 + $5738.70 = $57,908.7
March Sales on account: $114,330 * 11% = $114,330 + $12,576.3 = $126,906.3
b. Sales revenue in first quarter = $150,000 + $166,500 + $184,815
Sales revenue in first quarter = $501,315
Alpha Communications, Inc., which produces telecommunications equipment in the United States, has a very strong local market for its circuit board. The variable production cost is $130, and the company can sell its entire supply domestically for $170. The U.S. tax rate is 40 percent. Alternatively, Alpha can ship the circuit board to its division in Germany, to be used in a product that the German division will distribute throughout Europe. Information about the German product and the division’s operating environment follows.
Selling price of final product: $360
Shipping fees to import circuit board: $20
Labor, overhead, and additional material costs of final product: $115
Import duties levied on circuit board (to be paid by the German division): 10% of transfer price
German tax rate: 60%
Assume that U.S. and German tax authorities allow a transfer price for the circuit board set at either U.S. variable manufacturing cost or the U.S. market price. Alpha’s management is in the process of exploring which transfer price is better for the firm as a whole.
Required:
1. Compute overall company profitability per unit if all units are transferred and U.S. variable manufacturing cost is used as the transfer price. Show separate calculations for the U.S. operation and the German division.
2. Repeat requirement (1). assuming the use of the U.S. market price as the transfer price. Which of the two transfer prices is better for the firm?
3. Assume that the German division can obtain the circuit board in Germany for $155.
a. If you were the head of the German division, would you rather do business with your U.S. division or buy the circuit board locally? Why?
b. Rather than proceed with the transfer, is it in the best interest of Alpha to sell its goods domestically and allow the German division to acquire the circuit board in Germany? Why? Show computations to support your answer.
Answer:
1-If the transfer price is set equal to the U.S. variable manufacturing cost, Alpha Communications will have a profit of $32.80 per circuit board with US Share as $0 and German Share as $32.80.
2-If the transfer price is set equal to the U.S. market price, Alpha Communications will have a profit of $39.20 per circuit board with US Share as $24 and German Share as $15.20. The transfer price as US market price is more effective for the Alpha Communications.
3:a- If the German division can obtain the boards in Germany for 155, it is better for the German division because due to lack of additional shipping fee and import duty, this price is more feasible for the German division.
3:b- If the company decide to sell the US circuit boards locally and allow German division to obtain the circuit boards in Germany, then Alpha Communication will have a profit of $60 per circuit board with US Share as $24 and German Share as $36.
Explanation:
1-If the transfer price is set equal to the U.S. variable manufacturing cost, Alpha Communications will have a profit of $32.80 per circuit board. The calculations are as follows:
US Operation:
Sales Revenue(Price set to variable manufacturing cost): $130
Variable Manufacturing Cost: : ($130)
_________________________________________________
Contribution Margin : $ 0
German Operation:
Selling Price: $360
Transfer Price: ($130)
Additional Cost: ($115)
Shippng Cost: ($20)
Import Duty (10% of Transfer Price): 10% x 130=0.1x130= ($13)
_________________________________________________
Income Before Tax: $82
Income Tax (60% of Income Before Tax):60%x82 ($49.20)
___________________________________________________
Income After Tax $32.80
2-If the transfer price is set equal to the U.S. market price, Alpha Communications will have a profit of $39.20 per circuit board. The transfer price as US market price is more effective for the Alpha Communications. The calculations are as follows:
US Operation:
Sales Revenue(Price set to variable manufacturing cost): $170
Variable Manufacturing Cost: : ($130)
_________________________________________________
Income Before Tax : $ 40
Income Tax (40% of Income Before Tax):40%x40 :($16)
_________________________________________________
Income After Tax: : $24
German Operation:
Selling Price: $360
Transfer Fee: ($170)
Additional Cost: ($115)
Shippng Cost: ($20)
Import Duty (10% of Transfer Price): 10% x 170=0.1x170= ($17)
_________________________________________________
Income Before Tax: $38
Income Tax (60% of Income Before Tax):60%x38 ($22.80)
___________________________________________________
Income After Tax $15.20
Total Income By Alpha Communication: $24+$15.20=$39.20
3-a: If the German division can obtain the boards in Germany for 155, it is better for the German division because due to lack of additional shipping fee and import duty, this price is more feasible for the German division.
At the lower tranfer price of 130, the total impact of transfer is given by
Transfer Price: $130
Shippng Cost: $20
Import Duty (10% of Transfer Price): 10% x 130=0.1x130= $13
___________________________________________________
Total Impact $163
It is more than the local available price, Thus the company should purchase their circuit board locally.
3-b If the company decide to sell the US circuit boards locally and allow German division to obtain the circuit boards in Germany, then Alpha Communication will have a profit of $60 per circuit board.
US Operation:
Sales Revenue(Price set to variable manufacturing cost): $170
Variable Manufacturing Cost: : ($130)
_________________________________________________
Income Before Tax : $ 40
Income Tax (40% of Income Before Tax):40%x40 :($16)
_________________________________________________
Income After Tax: : $24
German Operation:
Selling Price: $360
Local Circuit Board Price ($155)
Additional Cost: ($115)
_________________________________________________
Income Before Tax: $90
Income Tax (60% of Income Before Tax):60%x38 ($54)
___________________________________________________
Income After Tax $36
Total Income By Alpha Communication: $24+$36=$60.0
The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead costs on the basis of machine hours. Chilton budgeted 0.5 machine hours per lamp and allocates overhead at a rate of $1.70 per machine hour. Last year Chilton manufactured 20,000 lamps, used 160,000 machine hours and incurred actual overhead costs of $192,000. What was Chilton's variable manufacturing overhead rate variance last year?
a. $24,000 favorable
b. $24,000 unfavorable
c. $210,900 unfavorable
d. $210,900 favorable
Answer:
Variable manufacturing overhead rate variance = 80,000 favorable
Explanation:
Given:
Overhead rate variance = $1.70 per hour
Total machine hour = 160,000 hour
Actual overhead costs = $192,000
Find:
Variable manufacturing overhead rate variance
Computation:
Variable manufacturing overhead rate variance = [Standard overhead rate - Actual overhead rate]Actual hour
Variable manufacturing overhead rate variance =[1.7 - (192,000 / 160,000)]160,000
Variable manufacturing overhead rate variance = [1.7 - (1.2)]160,000
Variable manufacturing overhead rate variance = [0.5]160,000
Variable manufacturing overhead rate variance = 80,000 favorable
8. Imagine a private company decides to sponsor an event in exchange for publicity. Give an example of when a sponsorship could have a negative result for the sponsoring company.
Answer:
Political events like a candidate rally are particularly tricky for companies, and sponsoring them could result in a lot of consumer backlash, specially from the people who are not affiliated to the sponsored politician or political party.
This is why many companies avoid political sponsorships or political statements, because politics is a very divisive issue, and while such an action could earn the company the loyal following of a few, it could also discourage a lot more people from ever buying their products.
Ester transfers land (basis of $200,000 and fair market value of $355,000) to a controlled corporation in return for stock in the corporation. However, shortly before the transfer, Ester mortgages the land and uses the $25,000 proceeds to meet personal obligations. Along with the land, the mortgage is transferred to the corporation. Ester has a realized gain on the transfer of_____and a recognized gain of_____.
Answer:
Ester will have a realized gain on the transfer of $155,000 and a recognized gain of $25,000
Explanation:
Calculation to determine realized gain on the transfer and recognized gain
Amount realized=($300,000+$25,000)-$200,000
Amount realized=$355,000-$200,000
Amount realized=$155,000
Based on the information given her recognized gain will be $25,000
The following are selected 2017 transactions of Shamrock Corporation.
Sept. 1 Purchased inventory from Encino Company on account for $55,600. Shamrock records purchases gross and uses a periodic inventory system.
Oct. 1 Issued a $55,600, 12-month, 8% note to Encino in payment of account.
Oct. 1 Borrowed $55,600 from the Shore Bank by signing a 12-month, zero-interest-bearing $59,960 note.
Required:
Prepare journal entries for the selected transactions above.
Answer and Explanation:
The journal entries are shown below:
a.
On Sep-01
Purchases $55,600
Accounts Payable $55,600
(Being inventory is purchased)
On Oct-01
Accounts Payable $55,600
Notes Payable $55,600
(being note payable is issued)
On Oct-01
Cash $55,600
Discount on Notes Payable $4,360
Notes Payable $59,960
(Being amount is borrowed)
b
On Dec-31
Interest Expense $1,112 ($55,600 × 8% × 3 ÷ 12)
Interest Payable $1,112
(Being interest on the note is recorded)
On Dec-31
Interest Expense $1,090 ($4,360 ÷ 12 × 3)
Discount on Notes Payable $1,090
(Being discount on the note is recorded)
Question 3 of 10
A typical point-of-sale display features products that are likely to be
O A. luxury goods
O B. sophisticated electronics
O C. impulse purchases
O D. display samples
SUBMIT
Answer:
C. impulse purchases
Explanation:
I just took the test
it's c. impulse purchases
Xavier Company had the following transactions during the current year:
• Earned revenues of $100,000 and incurred expenses of $56,000, all in cash.
• Purchased a truck for $20,000.
• Sold land for $10,000.
• Borrowed $15,000 from a local bank.
What was the total change in cash during the year?
The total change in cash of the Xavier Company would be $44,000.
What is the cash?Cash is defined as money in the form of actual currency, such as banknotes and coins. Cash is a current asset in bookkeeping and financial accounting that consists of currency or currency equivalents that may be obtained immediately or almost immediately.
Computation of change in cash:
Total change in cash = Cash change in operating activity + Cash change in Investing activities + Financing activities
Total change in cash = $44,000–$15,000 + $15,000
Total change in cash = $44,000
Whereas,
Change in cash in operating activities:
Change in cash in operating activities = Revenue – Expenses
Change in cash in operating activities = $100,000 – $56,000
Change in cash in operating activities = $44,000
Change in cash in investing activities:
Change in cash in investing activities = Sold land – Purchase of truck
Change in cash in investing activities = $10,000 – $25,000
Change in cash in investing activities = -$15,000
Change in cash from financing activities:
Change in cash from financing activities = Borrowed $15,000 from local bank = $15,000
Therefore, The Xavier Company's total cash change would be $44,000.
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(1 point) Why does the journalist think Enron's stock is overvalued?
Hi, you've asked an incomplete question. However, I provided some explanation.
Explanation:
Note, in the stock/asset trading market, the term 'stock/asset is overvalued' is used when the worth of a particular asset or stock is overestimated; in other words having a stock price that is too high considering the projects/company's usefulness.
Hence, the journalist's comments may have been based on this observation.
Sara is about to graduate high school. She has saved money the last few years while working a part-time job. Her parents bought her a car when she turned 16, but her younger brother is about to turn 16 and her parents have promised him the car when he turns 16. This means Sara must buy a car on her own. She has about $6,000 saved, and she received another $1,000 in graduation gifts. She wants to buy a reliable car that will last her throughout college. She has spotted a Honda Accord with low miles, but the asking price is $15,000.
Required:
Which banking service is Sara most interested in?
Answer:
Loan services
Explanation:
Based on the information given in a situation where She has the saved amount of $6,000 as well as the amount of $1,000 she received in graduation gifts which means that she will have $7,000 ($6,000+$1,000), Now if She wants to buy a car that is reliable in which the asking price of the car is the amount of $15,000 which means that Sara still need the amount of $8,000 ($15,000-$7,000) to balance the already saved amount of $7,000. Based on this the banking service that she most interested in is LOAN SERVICE reason been that this banking service will enable her to acquire the loan amount of $8,000 ($15,000-$7,000) in order for her to buy the Honda Accord she spotted.
Therefore the banking service that Sara is most interested in is LOAN SERVICES
Murray Exports (U.S.) exports heavy crane equipment to several Chinese dock facilities. Sales are currently 10,000 units per year at the yuan equivalent of $24,000 each. The Chinese yuan (renminbi) has been trading at Yuan8.20/$, but a Hong Kong advisory service predicts the renminbi will drop in value next week to Yuan9.00/$, after which it will remain at that rate for the foreseeable future. Based onthis forecast, Murray Exports faces a pricing decision in the face of the impending devaluation. It may either (1) maintain the same yuan price and in effect sell for fewer dollars, in which case Chinese volume will not change; or (2) maintain the same dollar price, raise the yuan price in China to offset the devaluation, and experience a 10% drop in unit volume. In both cases, direct costs per unit are 75% of the current U.S. sales price of $24,000.
A. What would be the short-run(one-year) impact of each pricing stragety?
B. Which do recommend?
Answer:
Murray Exports (U.S.)
A. The short-run impact of each pricing strategy is as follows:
Alternative 1 Alternative 2
Reduce Price to $21,867 Maintain Price at $24,000
Gross profit $38,670,000 $54,000,000
Reduction in Gross Profit $21,330,000 $6,000,000
B. (2) maintain the same dollar price of $24,000, raise the yuan price in China to Yuan 216,000 per unit to offset the devaluation, and experience a 10% drop in sales unit volume.
Explanation:
a) Data and Calculations:
Current exchange rate = Yuan 8.20/US$
Current exports of heavy crane equipment per year to China = 10,000
US unit price of printer in dollars = $24,000
Chinese unit price of crane equipment in Yuan equivalent = Yuan 196,800 ($24,000 * Yuan 8.20)
Unit price of crane equipment in Chinese Yuan when the currency is devalued = Yuan 216,000 ($24,000 * Yuan 9.00)
The reduced dollar price with devaluation, when Yuan price is maintained = $21,867 (Yuan 196,800/9.00)
Before Devaluation of Chinese Yuan:
Sales volume 10,000
Sales revenue $240,000,000 (10,000 * $24,000)
Direct costs 180,000,000 (10,000 * $18,000) (75% of $24,000)
Gross profit $60,000,000
Alternative 1 Alternative 2
Reduce Price to $21,867 Maintain Price at $24,000
Sales volume 10,000 units 9,000 (10,000 * 90%) units
Sales revenue $218,670,000 $216,000,000 ($24,000 * 9,000)
Direct costs 180,000,000 162,000,000 ($18,000 * 9,000)
Gross profit $38,670,000 $54,000,000 ($6,000 * 9,000)
Direct costs = $180m ($18,000 * 10,000) = $162m ($18,000 * 9,000)
Conciseness of messe refers
Answer:
Kindly check explanation
Explanation:
Conciseness is an important attribute needed in other to attain or communicate effectively. We could think of being concise as having to pass a message or communicate in the simplest possible form without jeopardizing other important elements or attributes needed to communicate effectively. Conciseness eliminates having to go back and forth as well as the use of verbose sentences, unnecessarily long sentences or grammar as one intends to pass a message. Rather, employs the usage of simple, clear cut and minimum possible wordings necessary for the receiver to understand the message being passed across.
EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 4% preferred stock. It is also authorized to issue 1,750,000 shares of $1 par value common stock. In its fifth year, the corporation has the following transactions: Mar. 1 Purchased 2,500 shares of its own common stock at $14 per share.
Apr. 10 Reissued 1,250 shares of its common stock held in the treasury for $18 per share.
Jun. 12 Reissued 1,250 shares of common stock at $12 per share.
Journalize the transactions.
Answer:
Ellajane Corporation - Journal Entries
Date Particulars Debit Credit
1-Mar Treasury Stock $35,000
To Cash $35,000
(Being 2500 shares of treasury stock purchased at $14 per share)
10-Apr Cash A/c (1250*$18) $22,500
To Treasury Stock (1250*14) $17,500
To Additional Paid in Capital $5,000
(Being 1250 shares of treasury stock sold at $18 per share)
12-Jun Cash A/c (1250*12) $15,000
Additional Paid in Capital A/c $2,500
To Treasury Stock (1250*14) $17,500
(Being 1250 shares of treasury stock sold at $12 per share)
A college uses advisors who work with all students in all divisions of the college. The most useful allocation basis for the salaries of these employees would likely be: Multiple Choice number of classes offered in each division. student graduation rate. square footage of each division. number of students advised from each division. relative salaries of division heads.
Answer: number of students advised from each division
Explanation:
What types of money are included in the M2 category? Check all that apply.
currency
savings accounts
checking accounts
commodity money
O short-term investment accounts
Answer:
A B C E
Explanation:
on edge :)
Answer:
A
B
C
E
CORECT ON EDGE
Explanation:
Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on CCN is 12% and that the expected dividend per share in one year is $0.50. CCN has just paid a dividend, so the next dividend is the $0.50 to be paid one year from now. Calculate the expected price per share 14 years from now. Assume that a dividend has just been paid.
Answer:
P14 = $55.69545045394 rounded off to $55.70
Explanation:
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D1 / (r - g)
Where,
D1 is the dividend expected in Year 1 or next year g is the constant growth rate in dividends r is the discount rate or required rate of return
To calculate the price of the share today, we use the dividend that is expected next year or in Year 1. Thus, to calculate the price of the share 14 years from now, we use use D15. The D15 can be calculated as follows,
D15 = D1 * (1+g)^14
D15 = 0.50 * (1+0.09)^14
D15 = $1.67086351362 rounded off to $1.67
Now using the equation for Price as provided by the DDM model,
P14 = 1.67086351362 / (0.12 - 0.09)
P14 = $55.69545045394 rounded off to $55.70
McElroy Inc, produces is single model of a popular cell phone in large quantities. A single cell phone moves through two departments, assembly and testing. The manufacturing costs in the assembly department during March follow: The assembly department has no beginning work-in-process inventory. During the month, it started 30,000 cell phones, but only 26,000 were fully completed and transferred to the testing department. All parts had been made and placed in the remaining 4,000 cell phones, but only 50% of the conversion had been completed. The company uses the weighted-average method of process costing to accumulate product costs.
1. Compute the equivalent units and cost per equivalent unit for March in the assembly department.
2. Compute the costs of units completed and transferred to the testing department.
3. Compute the costs of the ending work-in-process.
Question Completion:
The manufacturing costs in the assembly department during March follow:
Direct materials $187,500
Conversion costs 163,800
Total costs $351,300
Answer:
McElroy Inc.
Materials Conversion
1. Equivalent units 30,000 28,000
Cost per equivalent units $6.25 $5.85
2. Costs of units completed and transferred to the testing department:
Cost attributed to: Materials Conversion Total
Units transferred out $162,500 $152,100 $314,600
3. Ending Work in Process 25,000 11,700 36,700
Explanation:
a) Data and Calculations:
Units Materials Conversion
Started during March 30,000
Completed 26,000 26,000 26,000
Ending Work in Process 4,000 4,000 2,000 (50%)
Equivalent units 30,000 28,000
Cost of production: Materials Conversion Total
Incurred during March $187,500 $163,800 $351,300
Cost per equivalent unit: Materials Conversion
Total cost of production $187,500 $163,800
Equivalent units 30,000 28,000
Cost per equivalent unit $6.25 $5.85
Cost attributed to: Units Materials Conversion Total
Units transferred out 26,000 $162,500 $152,100 $314,600
Ending Work in Process 4,000 25,000 11,700 36,700
Total costs $187,500 $163,800 $351,300
Which of the following is TRUE regarding omni-channel buyers?
Incomplete question. The missing options read:
A. They shift easily across online and in-store channels.
B. They always shop in-store channels, then order online.
C. They prefer the online environment.
D. They purchase online but tend to purchase more in-store.
Answer:
A. They shift easily across online and in-store channels.
Explanation:
Indeed, these types of buyers do not have one preferred channel of making purchasing. Hence, companies who are aware of this employ the omnichannel strategy so as to satisfy the wants of their customers.
For example, a smartphone company would would make its smartphones not only in physical stores but also in online stores.
Dary Co. Produces a single product. Its normal selling price is $28 per unit. The variable costs are $18 per unit. Fixed costs are $20,000 for a normal production run of 5,000 units per month. Dary received a request for a special order that would not interfere with normal sales. The order was for 1,500 units and a special price of $17.50 per unit. Dary Co. has the capacity to handle the special order and, for this order, a variable selling cost of $2 per unit would be eliminated.
1. If the order is accepted, what would be the impact on net income?
a. decrease of $750
b. decrease of S6,750
c. increase of $2,250
d. increase of $1,500
2. Should the special order be accepted?
a. Cannot determine from the data given
b. Yes
c. No
d. There would be no difference in accepting or rejecting the special order.
Answer:
1. c. increase of $2,250
2. b. Yes
Explanation:
1. Calculation to determine what would be the impact on net income if the order is accepted
First step is to calculate the variable cost
Variable cost special order= ($18-$2)
Variable cost special order=$16
Now let calculate what would be the impact on net income if the order is accepted
Impact on net income=($17.50-$16)*1,500 units
Impact on net income=$1.50*1,500 units
Impact on net income= increase of $2,250
2. YES the special order should be accepted.
Carla Vista Company reports the following operating results for the month of August: sales $385,000 (units 5,500), variable costs $250,000, and fixed costs $94,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 56% of sales. Compute the net income to be earned under each alternative. 1. Net Income $ 2. Net Income $ Which course of action will produce the higher net income
Answer and Explanation:
The computation is shown below:
1.
Selling Price = Sales ÷ Units Sold
Current Selling Price = $385,000 ÷ 5500
= $70
Now
Expected Selling Price per unit = $70 + ($70× 10%)
= $77
Now
Expected Sales = 5500 × $77
= $423,500
Now
Net Income = Sales - Variable Cost - Fixed Cost
= $423,500 - $250,000 - $94,000
2.
Sales = $385000
Variable cost = $385,000 × 56% = $215,600
Sales $385,000
Less: variable cost -$215,600
Contribution Margin $169,400
Les: fixed cost -$94,000
Net Income $75,400
As we can see that if there is an increase in Selling Price by 10% so it would produce highest Net Income.
Bonita, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats.
Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per Activity
Designing $452,795 11,900 designer hours
Sizing and cutting 4,231,150 157,000 machine hours
Stitching and trimming 1,501,000 79,000 labor hours
Wrapping and packing 327,050 31,000 finished units
Required:
Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools.
Answer:
Results are below.
Explanation:
To calculate the activities rates, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Designing= 452,795 / 11,900= $38.05 per designer hour
Sizing and cutting= 4,231,150 / 157,000= $36.95 per machine hour
Stitching and trimming= 1,501,000 / 79,000= $19 per labor hour
Wrapping and packing= 327,050 / 31,000= $10.55 per finished unit