Answer: True
Explanation:
The assumption of the LIFO method is that the most recent goods which are added to the inventory of a company have been sold first.
This brings about a better matching of the cost incurred and the revenue since the most recent products added are the ones which are then sold first. Therefore, the correct option is True.
An account is opened with an initial deposit of $5,500 and earns 2.5% interest compounded annually. What will the account be worth in 10 years
Answer:
Explanation:
Every year the 5,500 Dollars, make an interest of 2.5% so if ten years have passed.
2.5x10
=25% are added to the money so find out the 25% of 5,500
5,500 x 0.25
= 1375
1375 + 5500
= 6875 Dollars is the total money in 10 years
Thank you!!
Marley, age 70 and head of household (unmarried), had income of $37,000 and exclusions of $500. Marley had adjustments/deductions for AGI of $2,500, and his itemized deductions for the year totaled $21,000. Marley had a QBI deduction of $1,000. Marley is entitled to a tax credit of $2,000. Marley is deaf. What is Marley’s taxable income
Answer:
the taxable income is $12,000
Explanation:
The computation of the taxable income is given below:
Income $37,000
Less: Exclusions ($500)
Less: Adjustments/deductions ($2500)
Less: Itemised deductions ($21,000)
Less: QBI deduction ($1,000)
Taxable Income $12,000
Hence, the taxable income is $12,000
The same should be considered and relevant
the black shoe company produces its famous madison shoe, which sell for $60m per pair, the operating income for 2020 is as follows: Revenues $300,000 Variable costs $120,000 Fixed costs $108,000
What is the break-even point in units?
When it comes to Risk Mitigation, which risk counter measure involves not even taking the chance with the risk?
Answer:
The risk countermeasure that involves not even taking the chance with the risk is:
risk avoidance.
Explanation:
Risk avoidance is a risk mitigation strategy. To avoid risk, risk exposures and hazards are completely eliminated. This means that risk avoidance seeks to completely avoid compromising events while other risk mitigation or management efforts try to control the damages and financial consequences of threatening events.
An American clothing manufacturer has recently purchased a clothing factory in Taiwan. This action is known as ________.
Answer: Foreign Direct Investment / Direct Investing
Explanation:
When a foreign company buys a domestic company with the intent of owing it and managing it actively, the foreign company is said to have directly invested in the domestic country.
This is what the American clothing company has done so this qualifies as a direct investment into Taiwan. If the American company had simply purchased shares in a company in Taiwan, this would be a Foreign portfolio investment.
You have the following information regarding a bond that pays semi-annual coupon payments: Time to maturity is 12 years Coupon Rate is 6% The current price (PV) of the bond is $1,189.14 today. Compute the I/T Periodic rate on the bond that is required by the market. State as a percent without using the percent sign and round to the second decimal place. Hence, 23.628% would be written as 23.63 for the response to be correct.
Answer: 2%
Explanation:
As the coupon payments are semi-annual, you need to convert the other measures to semi-annual measures as well.
Coupon rate = 6%/2 = 3% per semi annum
Coupon payment = 3% * 1,000 which is par value = $30
Time to maturity = 12 * 2 = 24 semi annual periods
Price is still the same = $1,189.14
You can use an Excel worksheet to solve for the Yield:
Number of periods = 24
Payment = $30
PV = 1,189.14
FV is par value of $1,000
Periodic rate is 0.019999
= 2%
Each year Capital Two retains 75 percent of its customers, and the annual discount rate is 5 percent. What annual retention rate doubles the value of a customer?
Answer: 87.5%
Explanation:
Value of a Customer = Margin * Retention rate / (1 + Annual discount rate - Retention rate)
We shall assume a margin of 1 so no need to include it:
= 75% / ( 1 + 5% - 75%)
= 2.5
This value needs to double so assume the retention rate to double this is x and use the formula above to find it:
5 = x / (1 + 5% - x)
5 * (1 + 5% - x) = x
5 + 0.25 - 5x = x
5.25 = 5x+ x
6x = 5.25
x = 5.25 / 6
x = 87.5%
Identifying and Classifying Balance Sheet and Income Statement Accounts
Following are selected accounts for Staples, Inc., for the fiscal year ended January 3, 2016
(a) Indicate whether each account appears on the balance sheet (B) or income statement (I).
Staples, Inc. ($ millions) Amount Classification
Sales $24,381 I
Accumulated depreciation 4,067 B
Depreciation expense 408 I
Retained earnings 6,694 B
Net income (loss) (211) I
Property, plant & equipment, net 6,030 B
Selling, general and admin expense 4,884 I
Accounts receivable 1,816 B
Total liabilities 6,144 B
Stockholders' equity 6,136 B
(b) Using the data, compute total assets and total expenses.
Total Assets = $Answer
Total Expenses = $Answer
(c) Compute net profit margin (net income/sales) and total liabilities-to-equity ratio (total liabilities/stockholders' equity). (Round your answers to two decimal places.)
Net Profit Margin = Answer
Total Liabilities-to-Equity Ratio = Answer
Answer:
Staples, Inc.
a. Indication of whether each account appears on the balance sheet (B) or income statement (I):
Staples, Inc. ($ millions) Amount Classification
Sales $24,381 (I)
Accumulated depreciation 4,067 (B)
Depreciation expense 408 (I)
Retained earnings 6,694 (B)
Net income (loss) (211) (I)
Property, plant & equipment, net 6,030 (B)
Selling, general and admin expense 4,884 (I)
Accounts receivable 1,816 (B)
Total liabilities 6,144 (B)
Stockholders' equity 6,136 (B)
b) Total Assets = $3,779
Total Expenses = $5,292
c) Net Loss Margin = -0.87%
Total Liabilities-to-Equity Ratio = = 100.13%
Explanation:
a) Data and Calculations:
Total assets:
Accumulated depreciation (4,067) (B)
Property, plant & equipment, net 6,030 (B)
Accounts receivable 1,816 (B)
Total assets = $3,779
Total Expenses:
Depreciation expense 408 (I)
Selling, general and admin expense 4,884 (I)
Total expenses = $5,292
Net profit (loss) margin = $(211)/ $24,381 * 100 = -0.865%
Total liabilities-to-equity ratio = total liabilities/stockholders' equity * 100
= $6,144/$6,136 * 100
= 100.13%
how to develop a deaf social club?
Assume a pro rata reinsurance agreement with a 35% retention. Further assume a primary insurance contract with limits of $2,500,000, premiums of $20,000 and deductible $10,000. a)How much premium will the primary insurance company retain
Answer: $7000
Explanation:
Since there is a pro rata reinsurance agreement with a 35% retention, primary insurance contract with limits of $2,500,000, premiums of $20,000 and deductible $10,000, then the amount of premium that the primary insurance company will retain will be:
= Retention rate × Premium
= 35% × $20000
= 0.35 × $20000
= $7000
Who's Candice?you get 61 points if you answer
Candice is a delightful young lady
Answer:
A strong ,courageous, beautiful , educated woman
Debt levels across industries vary widely. Debt ratios in most countries are considerably less than 100 percent. Some firms use no debt. Capital structures are fairly constant across industries. Most corporations have relatively low debt-asset ratios.
Complete Question:
Which one of the following is not empirically correct?
A. Debt levels across industries vary widely
B. Debt ratios in most countries are considerably less than 100 percent.
C. Some firms use no debt.
D. Capital structures are fairly constant across industries.
E. Most corporations have relatively low debt-asset ratios.
Answer:
The not empirically correct statement is:
D. Capital structures are fairly constant across industries.
Explanation:
Instead, the capital structures across industries vary significantly. Firms with large asset investments tend to have more leverage than others with less asset investments. And this situation of having or not having large investments in assets cuts across firms in the same industry. This suggests that their capital structures will always vary not because of the industry but the choices made by the firm's management. Capital structures are also influenced by taxes and operating income uncertainties, which also vary within the same industry.
Demonstrate the principles of health care finance for revenue management through the intended application of cost reporting and variances.
Solution :
Integration of all the processes:
Some integrated software system should be adopted where all the details about each patient along with the every billing and the payment details would help in keeping the track of the revenue.
Claims and billing management :
All the claims happened through some of the individuals or the company policies or the billing processes that take place to be accounted for the EHR system that can reduce the delays and also improve the effectiveness of the revenue management.
Documentation:
All the transactions should be documented, so there there are less chances for any error to occur.
The board of directors of a corporation: Multiple Choice Are elected by the corporate registrar. Are responsible for day-to-day operations of the business. Do not have the power to bind the corporation to contracts, due to lack of mutual agency.
Answer:
Are responsible for and have final authority for managing corporate activities.
Explanation:
Here are the complete options
The board of directors of a corporation:
a) Are elected by the corporate registrar.
b) Are responsible for day-to-day operations of the business.
c) Do not have the power to bind the corporation to contracts, due to lack of mutual agency.
d) May not also be executive officers of the corporation, due to the separate entity principle.
e) Are responsible for and have final authority for managing corporate activities.
A corporation is a business that is owned by shareholders. The corporation is a separate legal entity and so it can sue and be sued, pay taxes and own assets.
Advantages of a corporation include :
1. they have unlimited liabilities
2. they have unlimited life. the business doesn't end even after the death of the owners unlike a sole proprietorship
3. they have more access to capital
Disadvantages of a corporation include :
high cost of setting up
Earnings to shareholders are taxed twice
Managers of a corporation :
are elected by the shareholders of the firm they are responsible for and have final authority for managing corporate activities.The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting.
CANTON CORPORATION
Income Statement for 2013
Sales $340,100 (17,900 units at $19.00)
Cost of goods sold 205,850 (17,900 units at $11.50)
Gross profit $134,250
Selling and administrative expense 20,406
Depreciation 10,500
Operating profit $103,344
Taxes (30%) 31,003
Aftertax income $72,341
a. Assume in 2014 the same 17,900-unit volume is maintained, but that the sales price increases by 10 percent. Because of FIFO inventory policy, old inventory will still be charged off at $11.50 per unit. Also assume selling and administrative expense will be 6 percent of sales and depreciation will be unchanged. The tax rate is 30 percent.
a. Compute after-tax income for 2014. (Do not round intermediate calculations. Round your answer to the nearest whole number.)
b. In part a, by what percent did after-tax income increase as a result of a 10 percent increase in the sales price? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
c. Now assume that in 2015 the volume remains constant at 17,900 units, but the sales price decreases by 15 percent from its year 2014 level. Also, because of FIFO inventory policy, cost of goods sold reflects the inflationary conditions of the prior year and is $12.00 per unit. Further, assume selling and administrative expense will be 6 percent of sales and depreciation will be unchanged. The tax rate is 30 percent. Compute the after-tax income. (Round the sales price per unit to 2 decimal places but do not round any other intermediate calculations. Round your final answer to the nearest whole dollar amount.)
Answer:
The Canton Corporation
a. The After-tax income for 2014 is:
= $94,719.
b. The after-tax income increased by 30.93% as a result of a 10% increase in the sale price.
c. The after-tax income for 2015 is:
= $51,530.
Explanation:
a) Data and Calculations:
CANTON CORPORATION
Income Statement for 2013
Sales $340,100 (17,900 units at $19.00)
Cost of goods sold 205,850 (17,900 units at $11.50)
Gross profit $134,250
Selling and administrative expense 20,406
Depreciation 10,500
Operating profit $103,344
Taxes (30%) 31,003
After-tax income $72,341
CANTON CORPORATION
Income Statement for 2014
Sales $374,110 (17,900 units at $20.90)
Cost of goods sold 205,850 (17,900 units at $11.50)
Gross profit $168,260
Selling and administrative expense 22,446.60 (6% of sales)
Depreciation 10,500
Operating profit $135,313.40
Taxes (30%) 40,594.02
After-tax income $94,719.38
Increase in after-tax income:
After-tax income in 2014 = $94,719
After-tax income in 2013 = $72,341
Increase in after-tax income $22,378
Percentage increase = $22,378/$72,341 * 100 = 30.93%
Income Statement for 2015
Sales $317,993.50 (17,900 units at $17.77)
Cost of goods sold 214,800.00 (17,900 units at $12.00)
Gross profit $103,193.50
Selling and administrative expense 19,079.61 (6% of sales)
Depreciation 10,500
Operating profit $73,613.89
Taxes (30%) 22,084.17
After-tax income $51,529.72
After-tax income rounded to the nearest whole dollar = $51,530
mwakilembe Co.ltd is a micro business which buys and sell toys on 1 January 2020 the company predicted its annual sales to be 1000000 units. Each order would cost the company TZS 80 . The company pays TZS 160 per unit of a product. Estimated inventory carrying costs are 25 percent of inventory value. Establish the EOQ units.
Answer:
2000
Explanation:
Given:
Annual DEMAND, D = 1,000,000
Holding cost, H = (I * C)
Cost per order, S = 80
Unit cost, C = 160
Holding cost (%) = 25% = 0.25
The Economic order quantity :
EOQ = √[(2 * D * S) / (I * C)]
EOQ = √[(2 * 1000000 * 80) / (0.25 * 160)]
EOQ = √[(160000000) / 40]
EOQ = √4000000
EOQ = 2000
Hardening A. You and your opponent calmly discuss the objective issues involved in the conflict. Fragmentation of the enemy B. Your opponent tells your coworkers that you lied to her about how much money was left in the budget that you both have been discussing how to manage. Images and coalitions C. Rather than discussing the issues the goal becomes winning. You try to mobilize your colleagues to support your position. Loss of face D. Communication with your opponent is ended as winning is no longer possible. The goal becomes outlasting your opponent and destroying her power base.
Answer:
A. Hardening.
B. Loss of face.
C. Images and coalitions.
D. Fragmentation of the enemy.
Explanation:
A conflict can be defined as any form of disagreement that arises between two or more parties due to opposing views, opinions, or incompatibility.
Some examples of the conflict escalation stage includes;
A. Hardening: you and your opponent calmly discuss the objective issues involved in the conflict. It involves having a fixed position on how an issue or conflict is to be handled.
B. Loss of face: your opponent tells your coworkers that you lied to her about how much money was left in the budget that you both have been discussing how to manage. It typically occurs when an individual is accused of lying and would result in attacking the opponent's public personality.
C. Images and coalitions: rather than discussing the issues the goal becomes winning. It involves the mobilization of colleagues to support one's position.
D. Fragmentation of the enemy: communication with your opponent is ended as winning is no longer possible. It's focused on outlasting an opponent and destroying the person's power base.
A company needs 510,000 items per year. It costs the company $850 to prepare a production run of these items and $9 to produce each item. If it also costs the company $0.75 per year for each item stored, find the number of items that should be produced in each run so that total costs of production and storage are minimized. 33995 Incorrect: Your answer is incorrect. items/run
Answer:
20,824 units
Explanation:
850x + [ 0.75 - 510,000 ] / x
solving the equation we get,
[tex]x^{2}[/tex] = [ 0.75 - 510,000 ] / 850
x = 24.49
The number of items produced in each run should be;
510,000 / 24.49 = 20,824
Project A requires a $280,000 initial investment for new machinery with a five-year life and a salvage value of $30,000. The company uses straight-line depreciation. Project A is expected to yield annual net income of $20,000 per year for the next five years. QS 26-6 Accounting rate of return LO P2 Compute Project A’s accounting rate of return.
Answer:
12.90%
Explanation:
Annual average investment = (Initial investment + Salvage value) / 2
Annual average investment = ($280000 + $30000) / 2
Annual average investment = $155,000
Accounting rate of return = Annual after-tax net income / Annual average investment
Accounting rate of return = $20,000 / $155,000
Accounting rate of return = 0.1290322581
Accounting rate of return = 12.90%
The Allowance for Bad Debts account had a balance of $10,600 at the beginning of the year and $12,200 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $18,800 was recognized.
Required:
Calculate the total amount of past-due accounts receivable that were written off as uncollectible during the year. (Hint: Make a T-account for the Allowance for Bad Debts account, plug in the amounts that you know, and solve for the missing amount.)
Bad debt write-offs _________
Answer:
Written off = $17,200
Explanation:
Allowance for Bad Debt Account
Debtors (Write off) (Bal. fig) $17,200 Beginning Bal. $10,600
Bad debt expense $18,800
Ending Balance $12,200
Thus, the total amount of past-due accounts receivable that were written off as uncollectible during the year is $17,200.
An elevator company has redesigned their product to be 50% more energy efficient than hydraulic designs. Two designs are being considered for implementation in a new building.
(a) Given an interest rate of 20% which bid should be accepted?
Alternatives
Installed cost
Annual cost
Salvage value
Life, in years
A
$45,000
2700
3000
10
B
$54,000
2850
4500
15
(b) Research and list a few attributes that the company might be using in the elevators' major systems drive, cab, hoist, and control mechanisms that make them more energy efficient.
Answer:
An Elevator Company
a) Given an interest rate of 20%, bid A should be accepted.
b) Attributes that make the Elevators More Energy Efficient:
1. software- and microprocessor-based controls without using electromechanical relays
2. in-cab sensors and software to automatically turn off lights, ventilation, and other facilities when not in use.
3. destination dispatch control software to batch elevator stops.
4. Using dispatch controls that rely on personalized calls instead of in-cab controls.
Explanation:
a) Data and Calculations:
Interest rate = 20%
Alternatives A B
Installed cost $45,000 $54,000
Annual cost 2,700 2,850
Salvage value 3,000 4,500
Life, in years 10 years 15 years
Present value
annuity factor 4.192 4.675
Discount factor 0.162 0.065
Present values:
Installed cost $45,000 $54,000
Annual cost 11,318 13,324
Salvage value (486) (293)
Net present cost $55,832 $67,031
The United States requires that 50 percent of all parts used to construct an automobile in the United States be manufactured in the United States. As a result of this, when Toyota Motor Company builds automobile manufacturing plants in Tennessee and Ohio, it faces economic risks associated with _______
Answer:
Local-content laws
Explanation:
Local content laws are designed to encourage increased impact of locally produced goods on the local, regional, or national economy.
It goes beyond just making profit for the firm, but also how much the local products contribute to the economy.
In the given scenario the local content law in the United States is that 50 percent of all parts used to construct an automobile in the United States be manufactured in the United States.
This is a local content requirement.
So Toyota motor Company is facing risk associated with local content laws.
Verer Custom Carpentry manufactures chairs in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to nondetectible material defects. Spoiled units generally constitute 4% of the good units. Data provided for March 20X5 are as follows:
WIP, beginning inventory 3/1/20X5 32,000 units
Direct materials (100% complete)
Conversion costs (85% complete)
Started during March 70,000 units
Completed and transferred out 80,000 units
WIP, ending inventory 3/31/20X5 18,000 units
Direct materials (100% complete)
Conversion costs (80% complete)
Costs:
WIP, beginning inventory:
Direct materials $70,000
Conversion costs 40,000
Direct materials added 105,000
Conversion costs added 128,160
Required:
What are the normal and abnormal spoilage units, respectively, for March when using FIFO?
Answer:
Verer Custom Carpentry
Processing Department
Normal spoilage units = 3,920
Abnormal spoilage units = 80
Explanation:
a) Data for March 20X5 and Calculations:
WIP, beginning inventory 3/1/20X5 32,000 units
Direct materials (100% complete)
Conversion costs (85% complete)
Started during March 70,000 units
Completed and transferred out 80,000 units
WIP, ending inventory 3/31/20X5 18,000 units
Direct materials (100% complete)
Conversion costs (80% complete)
Costs:
WIP, beginning inventory:
Direct materials $70,000
Conversion costs 40,000
Direct materials added 105,000
Conversion costs added 128,160
Spoilage units:
Units Direct materials Conversion
Beginning inventory 3/1/20X5 32,000 0 (0%) 6,400 (20%)
Started during March 70,000
Total units available 102,000
Completed and transferred 80,000
Ending inventory 3/31/20X5 18,000
Spoilage units = 4,000 (102,000 - 80,000 - 18,000)
Good units = 98,000 (80,000 + 18,000)
Normal spoilage units = 3,920 (98,000 * 4%)
Abnormal spoilage units = 80 (4,000 - 3,920)
Use the following information to create an Excel workbook and write the appropriate Excel formula.
Single Payment Compound Amount-
SPCA = (1+i)^n
i, interest rate per period, has a value of 0.00675
n, number of periods, has a value of 89.
Your answer must be the value produced by the Excel formula. Your answer must contain TWO and only TWO decimal places.
Answer:
id k
Explanation:
I=Prt try that if it helps
intrest = principla x rate x time
Durable goods $3,000
Services $6,000
Business purchases of capital goods $400
Fixed investment $850
Exports $600
Imports $800
Nondurable goods $700
Inventory investment $200
Government transfer payments $100
Purchases of new residential housing $450
Government purchases $900
GDP is equal to:_______
a. $14,000
b. $11,550
c. $11,450
d. $8,600
e. $13,050
Answer:
c. $11,450
Explanation:
GDP = Consumption (C) + Investment (I) + Government Expenditure (G) + Net Export (NX)
GDP = [Non durable goods+Durable goods+Services] + [Fixed investment+Inventory investment] + Government purchase + [Export-Import]
GDP = [$700+$3000+$6000] + [$850+$200] + $900 + [$600-$800]
GDP = $9700 + $1050 + $900 - $200
GDP = $11,450
Explain (with theories support) the elements that can affect an individual behavior
Answer:
wow who has theory support THAT MENAS YOU HAVE wow but none of them has it
Explanation:
Social Cognitive Theory3,4
Bandura’s Social Cognitive Theory proposes that
people are driven not by inner forces, but by external factors. This model suggests that human functioning can be explained by a triadic interaction of
behavior, personal and environmental factors (see
figure 1). This is often known as reciprocal determinism. Environmental factors represent situational
influences and environment in which behavior is preformed while personal factors include instincts,
drives, traits, and other individual motivational forces. Several constructs underlie the process of human
learning and behavior change.3 These variables may also intervene in the process of behavior change4.
• Self-efficacy — A judgment of one’s ability to perform the behavior.
• Outcome Expectations — A judgment of the likely consequences a behavior will produce. The
importance of these expectations (i.e., expectancies) may also drive behavior.
• Self-Control — The ability of an individual to control their behaviors.
• Reinforcements — Something that increases or decreases the likelihood a behavior will continue
g If it is difficult to substitute for a good in the short run, but easy in the long run, then _____ . Group of answer choices the elasticity of demand is more elastic in the short un elasticity changes along the demand curve the elasticity of demand is more elastic in the long run the good is an inferior good
Answer:
the elasticity of demand is more elastic in the long run
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
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.
In the long run, people have more time to search for suitable alternatives than when compared to the short run. Thus, demand tends to be more elastic in the long run
List of ten household items (clothing, shoes, accessories, electronics, food (fruit is particularly good for this activity), etc.) that includes:
a. the name of the item
b. where it was made/produced/manufactured (country is usually all that is provided) . Identify and discuss the different infrastructure systems that facilitated the production, transportation, and your eventual purchasing of the product. Drawing on Massey’s "global sense of place," explain how these infrastructure system fold the global into the local (and vice versa, fold the local into the global).
Answer:
BR UH
Explanation:
what type of qs is this even
bannana
fridge
pencil
sink
spoon
fork
knife
sisscors
toaster
cup
bowl
bed
pillows
desk
door
tv
couch
chair
table
apple
grapes
cherries
peaches
napkins
toilet
The income statement of Martinez Company is shown below. MARTINEZ COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue $6,380,000
Cost of goods sold
Beginning inventory $2,080,000
Purchases 4,350,000
Goods available for sale 6,430,000
Ending inventory 1,460,000
Cost of goods sold 4,970,000
Gross profit 1,410,000
Operating expenses
Selling expenses 430,000
Administrative expenses 670,000 1,100,000
Net income $310,000
Additional information:
1. Accounts receivable decreased $300,000 during the year.
2. Prepaid expenses increased $150,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $280,000 during the year.
4. Accrued expenses payable decreased $110,000 during the year.
5. Administrative expenses include depreciation expense of $70,000.
Required:
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Vince Gill Company, using the indirect method.
Answer:
Cash flow from operating activities
Net income $310,000
Adjustment to reconcile net income to
net cash provided by operating activities
Depreciation expense $70,000
Decrease in account receivable $300,000
Decrease in inventory $620,000
Increase prepaid expense -$150,000
Decrease account payable -$280,000
Decrease accured expense payable -$110,000 $450,000
Net cash outflow from operating activities $760,000
Prepare journal entries to record each of the following four separate issuances of stock.
a. A corporation issued 3,000 shares of $10 par value common stock for $36,000 cash.
b. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $23,000. The stock has a $2 per share stated value.
c. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $23,000. The stock has no stated value.
d. A corporation issued 750 shares of $75 par value preferred stock for $79,250 cash.
Answer:
Transaction a
Debit : Cash $36,000
Credit : Common Stock (3,000 x $10) $30,000
Credit : Common Stock - Paid in excess of par $6,000
Transaction b
Debit : Cash $23,000
Credit : Common Stock $23,000
Transaction c
Debit : Cash $23,000
Credit : Common Stock $23,000
Transaction d
Debit : Cash $79,250
Credit : Preferred Stock (750 x $75) $56,250
Credit : Preferred Stock - Paid in excess of par $23,000
Explanation:
The journal entries to record each of the following four separate issuances of stock have been prepared above.
Step 1 : Distinguish if Stock has par value or not
For par value stock, any amount paid in excess of par value is places in a reserve - Paid in Excess of Par on issuance.
For non par value stocks, we value stocks at market price of item exchanged
Step 2 : Recording
On Issuance, Cash is increasing so we debit Cash Account. The Stock Account as well as the Reserve - Paid in Excess (if applicable) both increases on the credit side, so that will be a Credit entry