Answer:
C. services were provided.
Explanation:
If Fees Earned has been credited, it is most likely that: "services were provided."
For fees to be earned it means something must have been done in exchange for the fee. Considering this is a business-related issue, then it is correct to conclude that "If Fees Earned has been credited, it is most likely that: services were provided."
Option A is not correct because the overstatement of revenue is not related to the fee warmed being credited.
Option B is not correct, because a payment made in advance does not correlate to a fee earned. Option D is not correct as well, because an investment has nothing to do with a few earned.
Economists generally agree that increases in the minimum wage increase employment.a. TRUEb. FALSE
Answer:
b. FALSE
Explanation:
Economists do not have a unanimous consensus that an increase in the minimum wage will cause greater employment opportunities. In fact, the opposite is the case because research shows that when the minimum wage is increased, there is less demand for low-skill workers. Given that these firms would be paying more, they would want to only employ those that have a high-skill set and thus save their organization of some funds. Since businesses are not charity organizations, they must make decisions that will benefit them.
An individual who expects to receive more than $250 of income from sources other than wages meets the requirements for having to file quarterly estimated tax payments.
a. True
b. False
Every state allows an entrepreneur to form an L3C in that state (i.e., each state gives the option to establish an L3C just like it gives the option to establish an LLC in that state). Is this statement true or false
Answer:
True.
Explanation:
L3C is is a setup which requires program related investment PRI, which makes an investment foundation for profit to support philanthropic activities. There are various states which allows L3C formation just like LLC to the entrepreneurs.
Tobin Supplies Company expects sales next year to be $520,000. Inventory and accounts receivable will increase $90,000 to accommodate this sales level. The company has a steady profit margin of 20 percent with a 30 percent dividend payout. How much external financing will Tobin Supplies Company have to seek
Answer:
$17,200
Explanation:
Calculation to determine How much external financing will Tobin Supplies Company have to seek
Net Income=[$520,000 x 20%]
Net Income = $104,000
Dividend Pay-out= [$104,000 x 30%]
Dividend Pay-out = $31,200
Additions to Retained Earnings = [$104,00 - $31,200]
Additions to Retained Earnings=$72,800
Now let determine the The External Financing Needed using this formula
The External Financing Needed = Increase in Assets – Additions to retained earnings
Let plug in the formula
The External Financing Needed= $90,000 - $72,800
The External Financing Needed= $17,200
Therefore The External Financing Needed is $17,200
Harding Enterprises has developed a new product called the Gillooly Shillelagh. The market demand for this product is given as follows:
Q= 240 - 4P
a. At what price is the price elasticity of demand equal to zero?
b. At what price is demand infinitely elastic?
c. At what price is the price elasticity of demand equal to one?
d. If the shillelagh is priced at $40, what is the point price elasticity of demand?
Answer:
0
$60
$30
-2
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
the intercept of price on the inverse demand curve = 240 / 4 = $60
The intercept of quantity on the inverse demand curve = 240
Demand is infinitely elastic at the intercept on the price axis = 0
Demand is completely inelastic at the intercept on the quantity axis = 60 Demand is unit elastic at the half-way point between these two extremes (60 + 0) / 2 = 30
Point elastic demanded = (40/80) (-4) = -2
Formulating Financial Statements from Raw Data
Following is selected financial information from General Mills, Inc., for its fiscal year ended May 29, 2016 ($ millions):
*Cash from financing activites includes the effects of foreign exhange rate fluctuations.
Revenue $16,563.1
Cost of goods sold
$10,733.6
Cash from operating activities 2,629.8
Cash, ending year
763.7
Cash, beginning year 334.2
Total liabilities
16,405.2
Stockholders' equity 5,307.1
Cash from investing activities
93.4
Noncash assets 20,948.6
Total expenses (other than cost of goods sold)
4,092.7
Cash from financing activities* (2,293.7)
(a) Prepare the income statement, the balance sheet, and the statement of cash flows for General Mills for the fiscal year ended May 29, 2016.
Hint: Enter negative numbers only for answers in the statement of cash flows (if applicable).
General Mills, Inc.
Income Statement ($ millions)
For Year Ended May 29, 2016
Revenue $Answer
AnswerCash, ending yearTotal expensesCost of goods soldNoncash assets Answer
Gross profit Answer
AnswerCash, ending yearTotal expensesCost of goods soldNoncash assets Answer
Net income $Answer
General Mills, Inc.
Balance Sheet ($ millions)
May 29, 2016
Cash $Answer Total liabilities $Answer
AnswerCash, beginning yearNoncash assetsStockholders' equityNet income Answer AnswerCash, beginning yearNoncash assetsStockholders' equityNet income Answer
Total assets $Answer Total liabilities and equity $Answer
General Mills, Inc.
Statement of Cash Flows ($ millions)
For Year Ended May 29, 2016
Cash from operating activities $Answer
AnswerNoncash assetsNet incomeCash, beginning yearCash from investing activities Answer
Cash from financing activities Answer
Net change in cash Answer
AnswerNoncash assetsNet incomeCash, beginning yearCash from investing activities Answer
Cash, ending year $Answer
(b) Does the negative amount for cash from financing activities concern us? Explain.
A negative amount for cash from financing activities implies that the company is unable to pay its debts as they come due and should be interpreted negatively.
A negative amount for cash from financing activities is the result of additional borrowings. Because the additional funds are invested in earnings-generating assets, this should be viewed positively.
A negative amount for cash from financing activities implies that the market value of the company's long-term debt has declined and this change should be viewed negatively.
A negative amount for cash from financing activities reflects the reduction of long-term debt, which is a positive sign of the company’s ability to retire debt obligations.
(c) Using the statements prepared for part a. compute the following ratios (for this part only, use the year-end balance instead of the average for assets and stockholders' equity):
Round all answers to two decimal places (example for percentage answers: 0.12345 = 12.35%).
(i) Profit margin
(ii) Asset turnover
(iii) Return on assets
(iv) Return on equity
Answer:
General Mills, Inc.
a) Income Statement for the fiscal year ended May 29, 2016
Revenue $16,563.1
Cost of goods sold $10,733.6
Gross profit $5,829.5
Total expenses (other than cost of goods sold) 4,092.7
Net income $1,736.8
Balance Sheet as of the fiscal year ended May 29, 2016
Cash, ending year 763.7
Noncash assets 20,948.6
Total assets $21,712.3
Total liabilities 16,405.2
Stockholders' equity 5,307.1
Liabilities + equity $21,712.3
Statement of Cash Flows for the fiscal year ended May 29, 2016
Cash from operating activities 2,629.8
Cash from investing activities 93.4
Cash from financing activities* (2,293.7)
Net cash flow $429.5
Cash, beginning year 334.2
Cash, ending year 763.7
b) A negative amount for cash from financing activities reflects the reduction of long-term debt, which is a positive sign of the company’s ability to retire debt obligations.
c) Following ratios:
(i) Profit margin = 10.49%
(ii) Asset turnover = 0.76
(iii) Return on assets = 8.00%
(iv) Return on equity = 32.73%
Explanation:
a) Data and Calculations:
Revenue $16,563.1
Cost of goods sold $10,733.6
Cash from operating activities 2,629.8
Cash, ending year 763.7
Cash, beginning year 334.2
Total liabilities 16,405.2
Stockholders' equity 5,307.1
Cash from investing activities 93.4
Noncash assets 20,948.6
Total expenses (other than cost of goods sold) 4,092.7
Cash from financing activities* (2,293.7)
(i) Profit margin = $1,736.8/$16,563.1 * 100 = 10.49%
(ii) Asset turnover = $16,563.1/$21,712.3 = 0.76
(iii) Return on assets = $1,736.8/$21,712.3 * 100 = 8.00%
(iv) Return on equity = $1,736.8/$5,307.1 * 100 = 32.73%
You just won the lottery. Congratulations! The jackpot is $60,000,000, paid in eight equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really win? Use an annual interest rate of 11.00%.
Khả năng lãnh đạo là do tố chất bẩm sinh hay có thể hình thành thông qua rèn luyện? Hãy lấy ví dụ và phân tích hai người lãnh đạo trong thực tế để chứng minh cho quan điểm của Anh/Chị
Answer:
Theo tôi, một số đặc điểm sinh ra ở một người như thần thái, kỹ năng nói chuyện chuyên nghiệp và sự tự tin. Chúng có thể tăng hoặc giảm theo thời gian tùy thuộc vào kinh nghiệm và tình huống mà một người trải qua, nhưng tôi cũng không nghĩ rằng khả năng lãnh đạo có được vì một số người dành cả đời để tham gia các khóa học về sự tự tin, cách nói chuyện chuyên nghiệp, v.v. và họ vẫn không thể gây ảnh hưởng khác. Vì vậy, khả năng lãnh đạo là bẩm sinh chủ yếu là làm việc để đạt được một số kỹ năng. Bạn nghĩ sao?
Explanation:
làm ơn đi
When coins were jfirst used, they only had an image on one side. Why did coins start to have images on two sides?
Answer:
The coins have images on both sides because the coin issuers, or seigniors, wanted to see their faces on the coins.
Coins start to have images on two sides because the coin issuers, or seigniors, wanted to see their faces on the coins.
When and why were coins used as money?People traded products and services before money was created. The Mesopotamian people did not invent the shekel, which is regarded as the first known form of money, until roughly 5,000 years ago. Printed coins were used to pay troops, it was approximately 650–600 B.C. when gold and silver coins first appeared. The first real coins were struck in the prehistoric kingdoms of Lydia and Ionia and were made of electrum, a mineral composed primarily of gold and at least 20 percent silver.
The Lydians started minting gold coins in the period between 560 and 546 BC after learning how to separate the gold from the silver in electrum. Coins are significant historical primary sources. They communicate king names together with their titles, images, locations, dates, dynasties, accomplishments, and logos.
Learn more about coins here:
https://brainly.com/question/28304
#SPJ6
The price of a basket of goods is $2000 in the U.S. If purchasing power parity holds, and the dollar buys two units of some country’s currency, then how many units of foreign currency does the same basket of goods cost in that country?
Answer:
4000
Explanation:
Calculation to determine how many units of foreign currency does the same basket of goods cost in that country
Based on the information given we were told that the PRICE OF A BASKET OF GOODS is the amount of $2000 in which the dollar buys TWO UNITS of some country’s currency, now let determine HOW MANY UNITS of foreign currency does the same basket of goods cost in that country
Using this formula
Units of foreign currency=Basket of goods price*Some country’s currency units
Let plug in the formula
Units of foreign currency=$2,000* 2 units
Units of foreign currency=4,000 units
Therefore the number of units of foreign currency that the same basket of goods cost in that country is 4,000
The price of a basket of goods is $2000 in the U.S. If purchasing power parity holds, and the dollar buys two units of some country’s currency, then how many units of foreign currency does
Which method of cash distribution carries more informational content when its announcement is made: the cash dividends or the stock repurchase
Answer:
cash dividend
Explanation:
According to signalling theory, payment of dividends communicate management's earnings forecast. Thus dividend payment provide information about the health of a company to its investors.
Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years
and an estimated residual value of $25,000.
A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method
of depreciation?
B. What was the book value of the equipment on January 1 of Year 4?
C. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the
entry to record the sale.
D. Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead
of $300,000, journalize the entry to record the sale.
Answer:
A. Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. $322,500
C. Dr Cash $300,000
Dr Accumulated Depreciation-Equipment $52,500
Dr Loss on disposal of Equipment $22,500
Cr Equipment $375,000
D. Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
Explanation:
A. Calculation to determine What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation
Year 1 Depreciation expense Year 1=($375,000-$25,000)/20 years
Year 1 Depreciation expense Year=$17,500
Year 2 Depreciation expense Year=($375,000-$25,000)/20 years
Year 2 Depreciation expense Year=$17,500
Year 3 Depreciation expense Year=($375,000-$25,000)/20 years
Year 3 Depreciation expense Year=$17,500
Therefore the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation is :
Year 1 $17,500
Year 2 $17,500
Year 3 $17,500
B. Calculation to determine What was the book value of the equipment on January 1 of Year 4
Book value of Equipment=[$375,000-($17,500*3)]
Book value of Equipment=[$375,000-$52,500)
Book value of Equipment=$322,500
Therefore the book value of the equipment on January 1 of Year 4 is $322,500
C. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $300,000
Accumulated Depreciation-Equipment $52,500
($17,500*3)
Dr Loss on disposal of Equipment $22,500
($322,500-$300,000)
Cr Equipment $375,000
(To record sales)
D. Preparation of the journal entry to record the sale.
Jan. 3
Dr Cash $325,000
Dr Accumulated Depreciation-Equipment $52,500
($17,500*3)
Cr Equipment $375,000
Cr Gain on disposal of Equipment $2,500
($325,000+$52,500-$375,000)
(To record sales)
ou purchase one MBI July 127 call contract (equaling 100 shares) for a premium of $17. You hold the option until the expiration date, when MBI stock sells for $137 per share. You will realize a ______ on the investment.
Answer:
$700 profit
Explanation:
Exercise Price = $127
Expiration date price = $137
Profit for Calls buyer = $137 - $127 = $10
1 Call = 100 shares. So, the total profit = $10*100 = $1000
Buying price of one option = $17
Total buying price of the call option = $17*100 = $1,700
Total loss for the buyer = $1,700 - $1,000
Total loss for the buyer = $700
Note: Loss for the buyer = Profit for the seller. So, i will realize a $700 profit on the investment.
Company X has beta = 1.6, while Company Y's beta = 0.7. The risk-free rate is 7%, and the required rate of return on an average stock is 12%. Now the expected rate of inflation built into rRF rises by 1 percentage point, the real risk-free rate remains constant, the required return on the market rises to 14%, and betas remain constant. After all of these changes have been reflected in the data, by how much will the required return on Stock X exceed that on Stock Y?
a. 5.40%
b. 5.75%
c. 3.75%
d. 4.82%
e. 4.20%
Answer:
a. 5.40%
Explanation:
First, I will calculate the new cost of equity for both stock X and Y:
Required rate of return = risk free rate + (beta x market premium)
Re stock X = 8% + (1.6 x 6%) = 8% + 9.6% = 17.6%
Re stock Y = 8% + (0.7 x 6%) = 8% + 4.2% = 12.2%
The difference between the required rate of return = 17.6% - 12.2% = 5.4%
Your company will generate $60,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.50 percent, what is the present value of the savings? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)Present value
Answer:
The answer is "[tex]\$307,110.81[/tex]"
Explanation:
Following are the calculation for the present value of the saving:
Present value[tex]= c\times \frac{1-[\frac{1}{(1+r)^t}]}{r}\\\\[/tex]
[tex]=\$60,000 \times \frac{1-[\frac{1}{(1+8.5\%)^7}]}{8.5\%}\\\\=\$60,000 \times 5.118514\\\\= \$307,110.81\\\\[/tex]
therefore, the present value of the savings is [tex]\$307,110.81[/tex]
What could Vans do to keep its dealer network intact and supportive even after opening a corporate store in their market
Answer:
Vans
To keep its dealer network intact and supportive even after opening a corporate store in their market,
Vans should not compete directly with its dealer network stores, especially based on lower prices. It must ensure that its prices are at similar levels with those offered by its dealers.
Explanation:
Vans can also differentiate the products in the corporate store from those offered by the dealer networks. It can offer its products for bulker purchases than those offered by the dealers. It can also inform its dealers that the corporate store in their market exists to offer close-by support to the dealers instead of competing with them. The corporate store may be a way to undertaking extensive advertisements and publicity that will rub off favorably on the dealers.
The Federal Arbitration Act (FAA) allows for arbitration clauses in employment contracts. False True
Answer:
True
Explanation:
It is TRUE that the Federal Arbitration Act (FAA) allows for arbitration clauses in employment contracts.
The above statement is echoed in the Epic Systems Corp. v. Lewis on May 21, 2018, where the Supreme Court gave its ruling that the FAA is totally enforceable in the individual arbitration agreements contracts.
Similarly, in the case of American Express Co. v. Italian Colors Restaurant, the court ruled that necessary arbitration clauses are legal.
Founded nearly 50 years ago by Alfred Lester-Smith, Beautiful Clocks specializes in developing and marketing a diverse line of large ornamental clocks for the finest homes. Tastes have changed over the years, but the company has prospered by continually updating its product line to satisfy its affluent clientele. The Lester-Smith family continues to own a majority share of the company and the grandchildren of Alfred Lestef-Smith now hold several of the top managerial positions. One of these grandchildren is Meredith Lestef-Smith, the new CEO of the company. Meredith feels a great responsibility to maintain the family heritage with the company. She realizes that the company needs to continue to develop and market exciting new products. Since the 50th anniversary of the founding of the company is rapidly approaching, she has decided to select a particularly special new product to launch with great fanfare on this anniversary. But what should it be?
Answer:
Beautiful Clocks
It should be a large Golden (50th Year) Anniversary Ornamental Clock with gold-tinted background.
Explanation:
This type of clock will be handy for those who want to celebrate their friends' 50th birthdays and other anniversaries. It will also immortalize the Beautiful Clock Company as an entity that lives with the time. This clock will be exciting to its affluent clientele, who are always in celebration moods.
On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $40,000 in cash and giving a short-term note for $306,000. Legal fees paid were $1,665, delinquent taxes assumed were $13,100, and fees paid to remove an old building from the land were $22,500. Materials salvaged from the demolition of the building were sold for $5,200. A contractor was paid $1,051,800 to construct a new warehouse.
Requried:
Determine the cost of the land to be reported on the balance sheet.
Answer:
See below
Explanation:
The cost of land to be included in the balance sheet would not only include the price paid to acquire the land but also include cost or revenue received in the process while also include all activities required to bring the land to the stage in which it may be ready for usage.
With regards to the foregoing, the cost of land to be included in the balance is is
= Cash paid + short term note + legal fee + delinquent taxes + Fees paid to remove old building from the land - sales of materials salvaged from demolition of the building
= $40,000 + $306,000 + $1,665 + $13,100 + $22,500 - $5,200
= $378,065
Therefore, cost of land to be included in the balance sheet is $378,065
The common stock of Sweet Treats is selling for $54.65 per share. The company is expected to have an annual dividend increase of 3.7 percent indefinitely and pay a dividend of $4.30 in one year. What is the total return on this stock
Answer:
11.66%
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
54.05 = 4.3/ (r - 0.037)
4.3 / 54.05 = r - 0.037
11.66 = r
Why do we need an organizational structure?
Structure will give employees more clarity, help manage expectations, enable better decision-making and provide consistency.
Which of the following describes the mission of an organization? a. Who are we? Who will we become? b. What do we stand for and believe in? What standards can be used to evaluate and judge us? c. What is our product or service? d. Who is our customer? e. What is our strategic purpose for operating?
Answer:
a. Who are we? Who will we become?
Explanation:
In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;
I. Value.
II. Vision.
III. Mission.
A mission statement is typically a description of the overall goal or purpose for which an organization was established and what it hopes to achieve in the future.
Hence, the question of Who are we? and Who will we become? describes the mission of an organization.
Imagine you are reviewing a business plan. In which section of the business plan would you expect to find the answers to the following questions?
Question Financial Statements Marketing & Sales Management Service or Product Line
How much money will the owners invest in the business start-up?
How will the salespeople for this business be compensated?
What are the unique features of this business’s merchandise?
Answer:
Hence,
The money which the owners invest in the business start-up is by Financial statements.
The salespeople for this business be compensated is by Marketing & sales management.
The unique features of this business’s merchandise are by Service or product line.
Explanation:
Financial statements show how much money will the owners invest in the business start-up.
Marketing & sales management shows how will the salespeople for this business be compensated.
Service or product line shows What are the unique features of this business’s merchandise
XYZ has contribution margin of 30% with fixed costs of $550,000. Next year, sales are projected to be $3,100,000. An advertising with additional $120,000 is being evaluated. How much would sales have to increase to justify the additional ad expense
Answer:
$400,000
Explanation:
Calculation to determine How much would sales have to increase to justify the additional ad expense
Using this formula
Required sales=Additional advertising value/Fontribution margin
Let plug in the formula
Required sales = $120,000 / 0.3
Required sales = $400,000
Therefore How much would sales have to increase to justify the additional ad expense is $400,000
The Engine Division of MurphyMotor Corporation uses 5,000 carburetors per month in its production of automotive engines. It presently buys all of the carburetors it needs from two outside suppliers at an average cost of $100. The Carburetor Division of MurphyMotor Corporation manufactures the exact type of carburetor that the Engine Division requires. The Carburetor Division is presently operating at its capacity of 15,000 units per month and sells all of its output to a foreign car manufacturer at $106 per unit. Its cost structure (on 15,000 units) is: Variable production costs $70 Variable selling costs 10 All fixed costs 10 Assume that the Carburetor Division would not incur any variable selling costs on units that are transferred internally. Refer to MurphyMotor Corporation. If the two divisions agree to transact with one another, corporate profits will:__________:
a. rise by $50,000 per month
b. drop by $30,000 per month
c. rise or fall by an amount that depends on the level of the transfer price
d. rise by $20,000 per month
Answer:
The correct option is d. rise by $20,000 per month.
Explanation:
Since it is assumed that the Carburetor Division would not incur any variable selling costs on units that are transferred internally, this implies that the variable selling costs is NOT relevant to the determination of the transfer price per unit to be used in calculating corporate profit. Therefore, the transfer price per unit can be calculated as follows:
Transfer price per unit = Price to foreign car manufacturer per unit = Price to foreign car manufacturer per unit - Variable selling costs per unit = $106 - $10 = $96
Rise in corporate profit per month = (Average cost per unit from the two outside suppliers - Transfer price per unit) * Number of carburetors used per month = ($100 - $96) * 5,000 = $20,000
This shows that if the two divisions agree to transact with one another, corporate profits will: rise by $20,000 per month.
Therefore, the correct option is d. rise by $20,000 per month.
During 2015, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below:
Completed-Contract Percentage-of-Completion
2013 $ 475,000 $ 900,000
2014 625,000 950,000
2015 700,000 1,050,000
$1,800,000 $2,900,000
Assuming an income tax rate of 40% for all years, the affect of this accounting change on prior periods should be reported by a credit of:____________
Answer:
$450,000
Explanation:
Calculation to determine , the affect of this accounting change on prior periods that should be reported by a credit of:
Using this formula
Accounting change on prior periods=(2013 Percentage-of-Completion+2014 Percentage-of-Completion)-(2013 Completed-Contract+2014 Completed-Contract)*(1-Tax rate)
Let plug in the formula
Accounting change on prior periods=[($900,000+$950,000)-($475,000+$625,000)]*(1-40%)
Accounting change on prior periods=($1,850,000-$1,100,000)*0.60
Accounting change on prior periods=$750,000*.60
Accounting change on prior periods=$450,000
Therefore Assuming an income tax rate of 40% for all years, the affect of this accounting change on prior periods should be reported by a credit of:$450,000
XYZ Manufacturing reported the following:
Revenue $485,000
Beginning inventory of direct materials, January 1, 2015 24,000
Purchases of direct materials 122,000
Ending inventory of direct materials, December 31, 2015 15,000
Direct manufacturing labor 21,000
Indirect manufacturing costs 34,000
Beginning inventory of finished goods, January 1, 2015 38,000
Cost of goods manufactured 186,000
Ending inventory of finished goods, December 31, 2015 33,000 Operating costs 126,000
What is XYZ's gross margin (or gross profit)?
Answer:
the gross profit of XYZ is $294,000
Explanation:
The computation of the gross profit is shown below:
= Revenue - cost of goods sold
= $485,000 - ($38,000 + $186,000 - $33,000)
= $485,000 - $191,000
= $294,000
Hence, the gross profit of XYZ is $294,000
The above formula should be used for the same
The following items are reported on a company's financial statements for 2015 and 2016:
($ in Thousands) 2015 2016
Cash $290 $300
Short-term investments 100 100
Receivables (net) 160 200
Inventory 140 160
Accounts payable 350 400
Sales 1740 1800
Cost of goods sold 1120 1200
Determine the following measures for 2016:
a. Current ratio
b. Accounts receivable turnover
c. Quick ratio
d. Inventory turnover
Answer:
See below
Explanation:
1. Current ratio
= Current asset / Current liabilities
Current asset = cash + marketable securities + accounts receivables + inventory
= $300 + $100 + $200 + $160
= $760
Current liabilities = accounts payable
Current liabilities = $400
Current ratio = $760 / $400
Current ratio = 1:9:1
2. Accounts receivable turnover
= Net credit sales / [(Beginning receivables + ending receivables) /2]
= $1,800 / [ ($160 + $200)/2]
= $1,800 / $180
= 10 times
3. Quick ratio
= Current asset - Inventory / Current liabilities
= $300 + $100 + $200 - $160 / $400
= $440 / $400
= 1:1:1
The records of Quality Cut Steak Company list the following selected accounts for the year ended April 30, 2020 after all adjusting entries have been recorded. Prepare a multiple-step income statement in good form for the company. (Please note only selected accounts are listed, do not try to balance the excerpted trial balance).
Interest revenue 500 Accounts Payable 16,900
Inventory 45,300 Accounts Receivable 38,000
Notes Payable,
Long-term 52,000 Accumulated Depreciation
- Equipment 36,800
Salaries Payable 2,400 Arnold, Capital 42,200
Sales Revenue 292,000 Arnold, Withdrawals 17,000
Salaries Expense
(Selling) 21,400 Cash 7,400
Office Supplies 6,300 Cost of Merchandise
Sold 160,600
Unearned Rent 13,200 Equipment 130,000
Interest Expense 1,700 Interest Payable 1,000
Depreciation Expense
- Equipment (Admin) 1,300 Rent Expense (Admin) 9,600
Utilities Expense
(Admin) 4,300 Utilities Expense
(Selling) 10,600
Delivery Expense
(Selling) 3,500
Answer:
Quality Cut Steak Company
Quality Cut Steak Company
Multiple-step Income Statement for the year ended April 30, 2020
Sales Revenue $292,000
Cost of Merchandise Sold (160,600)
Gross profit $131,400
Operating expenses:
Depreciation Expense -
Equipment (Admin) 1,300
Rent Expense (Admin) 9,600
Utilities Expense (Admin) 4,300
Salaries Expense (Selling) 21,400
Utilities Expense (Selling) 10,600
Delivery Expense (Selling) 3,500
Total operating expenses $50,700
Net operating income $80,700
Interest revenue 500
Interest Expense (1,700)
Net income before taxes $79,500
Explanation:
a) Data and Calculations:
Accounts Payable 16,900
Cash 7,400
Accounts Receivable 38,000
Office Supplies 6,300
Inventory 45,300
Equipment 130,000
Salaries Payable 2,400
Unearned Rent 13,200
Interest Payable 1,000
Accumulated Depreciation - Equipment 36,800
Notes Payable, Long-term 52,000
Arnold, Capital 42,200
Arnold, Withdrawals 17,000
Sales Revenue 292,000
Interest revenue 500
Cost of Merchandise Sold 160,600
Interest Expense 1,700
Depreciation Expense - Equipment (Admin) 1,300
Rent Expense (Admin) 9,600
Utilities Expense (Admin) 4,300
Salaries Expense (Selling) 21,400
Utilities Expense (Selling) 10,600
Delivery Expense (Selling) 3,500
Determine whether an observational or experimental study is appropriate to address the following statement.
A gas station owner wants to find out whether customers are satisfied with the service they receive.
Answer:
Observational study
Explanation:
The appropriate study for a gas station owner who wants to find out whether customers are satisfied with the service they receive or not is "Observational Study."
Given that the Observational study is a type of research study or scientific investigation in which the researcher observes the effect of an action or activities such as risk factors, or outcomes without a direct impact on the intervention from the researcher.
In this case, the satisfaction of customers concerning the services they receive can only be observed by the researcher without influencing the services or how the customers perceived their level of satisfaction.