The following transactions occurred during July: Received $1,600 cash for services performed during July. Received $7,800 cash from the issuance of common stock to owners. Received $800 from a customer as payment for services performed during June. Billed $4,700 to customers for services performed on account in July. Borrowed $3,300 from the bank and signed a promissory note. Received $2,200 from a customer for services to be performed during August. What is the amount of revenue that will be reported on the income statement for the month ended July 31

Answers

Answer 1

Answer:

the amount of revenue that should be reported is $6,300

Explanation:

The computation of the amount of revenue that should be reported is shown below;

= Cash received + service revenue earned on the account

= $1,600 + $4,700

= $6,300

hence, the amount of revenue that should be reported is $6,300

Basically we add the two items so that the correct value could arrive


Related Questions

After the issuance of its year 1 financial statements, Serenity Inc. discovered a computational error of $150,000 in the calculation of December 31, year 1 inventory. The error resulted in a $150,000 overstated in the cost of goods sold for the year ended December 31, year 1. In October, year 2, Serenity paid $500,000 to settle litigation initiated it during year 1. In the financial statements for year 2, the year 1 retained earnings balance, as previously reported, should be adjusted by (ignore income taxes):_________-
a. $350,000 debit
b. $500,000 debit
c. $150,000 credit
d. $650,000 credit

Answers

Answer: C. $150,000 credit

Explanation:

In the financial statements for year 2, it should be noted that the year 1 retained earnings balance, should be adjusted by $150,000 credit.

The corrections of errors should be treated as the period adjustments before. In this case, the $150,000 overstatement for the cost of goods that was sold in the previous year, will then be credited to the beginning balance of the retained earnings.

Therefore, the correct option is C.

Presented below is information related to Ricky Henderson Company.
Cost Retail
Beginning inventory $ 282,140 $ 291,600
Purchases 1,425,000 2,144,000
Markups 92,300
Markup cancellations 17,400
Markdowns 37,900
Markdown cancellations 6,100
Sales revenue 2,346,000
Compute the inventory by the conventional retail inventory method.

Answers

Answer:the inventory by the conventional retail inventory method=the cost of Ending inventory becomes == $90,236.

Explanation:

Inventory computed  for Ricky Henderson Company

  Using the conventional retail inventory method, we have

                                                           Cost              Retail

Beginning of Inventory               $ 282,140       $ 291,600

Purchases                                    1,425,000           2,144,000

Total                                               1,707,140            2,435,600

 Add:

Net Markups                                                                74,900

(Markups -Markup                           92,300 - 17,400)                

cancellations)                                        

  Total                                               1,707,140                2510500

Less:

Net Markdown                                                                   31,800

(Markdowns -Markdown                          (37,900 - 6,100)                

cancellations)                                                                        

                     

Sales price of goods                                                            2,478,000

Sales revenue                                                                       2,346,000        

The retail ending                                                                        132,700

(Sales price of goods-Sales revenue)

Therefore,

The retail cost ratio is =   1,707,140 /2,510,500=0.68= 68%

Hence, the cost of Ending inventory becomes =  132,700 x 68%

= $90,236.                                                  

                                     

     


What is the purpose of database normalization in tables?

Answers

Answer:

This includes creating tables and establishing relationships between those tables according to rules designed both to protect the data and to make the database more flexible by eliminating redundancy and inconsistent dependency.

Answer: its A

Explanation:

Tanner-UNF Corporation acquired as an investment $260 million of 5% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 7% for bonds of similar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $215 million.

Required:
a. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate.
b. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2021, balance sheet.

Answers

Answer:

Tanner-UNF Corporation

a. Journal Entry

July 1, 2021:

Debit Investment in Bonds $260 million

Credit Discount on bonds $60 million

Credit Cash $200 million

To record the acquisition of bonds.

December 31, 2021:

Debit Cash $6.5 million

Debit Discount on bonds $0.5 million

Credit Interest Revenue $7 million

To record cash received from bond investment and amortization of the bond discount for the semi-period.

b. Debit Unrealized Bonds Investment Loss $45 million

Credit Investment in Bonds $45 million

To record the unrealized loss on the investments.

Explanation:

a) Data and Calculations:

July 1, 2021:

Face value of bonds = $260 million

Interest rate = 5%

Market interest rate = 7%

Payment for the bonds = $200 million

Discount on bonds = $60 million

December 31, 2021:

Semi-annual interest cash receipts = $6.5 million ($260m * 2.5%)

Semi-annual interest revenue = $7 million ($200m * 3.5%)

Amortization of bonds discount = $0.5 ($7 million - $6.5 million)

Fair value of bonds = $215 million


The phase of the business cycle that includes a period of consistent growth
in GDP and falling unemployment is called a(n).

A. trough
B. contraction
C. expansion
D. peak

Answers

The phase of the business cycle that includes a period of consistent growth in GDP and falling unemployment is called expansion.

What do you mean by business cycle?

A business cycle is characterized by four main stages that are expansion, peak, contraction, and trough.

The business cycle stage of expansion is when an economy experiences relatively rapid growth, interest rates tend to be low, production increases and inflationary pressures build.

Therefore, C is the correct option.

Learn more about the business cycle here:

https://brainly.com/question/4511868

#SPJ2

According to the survey article on mergers by Mukherjee et al,

A) a minority of managers believe that diversification can be a good reason to merge.
B) acquiring managers discount targets’ cash flows at the targets’ cost of capital.
C) managers do not believe operating synergies to be important in merger decisions.
D) managers do not use the discounted cash flow formula to value a target in a merger.

Answers

I think it’s d but not sure

An economy starts in a long-run equilibrium, but then a severe drought kills crops and dramatically increases the price of food. If the Federal Reserve wanted to stabilize the economy and return it back to full employment, it would Group of answer choices decrease the money supply, which would restore the original price level increase the money supply, but prices would forever be higher decrease the money supply, but prices would forever be lower increase the money supply, which would restore the original price level

Answers

Answer:

increase the money supply, but prices would forever be higher.

Explanation:

In this scenario, an economy starts in a long-run equilibrium, however a natural disaster such as drought kills crops and dramatically increases the price of food in the market. Thus, if the Federal Reserve wanted to stabilize the economy and return it back to full employment, it would increase the money supply, but prices would forever be higher.

The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.

Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.

Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;

I. The Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.

II. It provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."

III. It regulates banking activities in the United States of America: it has the power to supervise and regulate banks.

Indirect: Computing cash flows from operation
Case X Case Y Case Z
Net income $7,200 $180,000 $129,600
Depreciation expense 54,000 14,400 43,200
Accounts receivable increase (decrease) 72,000 36,000 (7,200)
Inventory increase (decrease) (36,000) (18,000) 18,000
Accounts payable increase (decrease) 43,200 (39,600 ) 25,200
Accrued liabilities increase (decrease) (79,200 ) 21,600 (14,400)
For each of the above separate cases X, Y, and Z, compute cash flows from operations using the indirect method.

Answers

Answer:

                                                          CASE X      CASE Y       CASE Z

NET INCOME                                    $7,200      $180,000    $129,600

ADJUSTMENT TO RECONCILE

NET INCOME TO NET CASH

DEPRECIATION                                 $54,000   $14,400      $43,200

CHANGES IN ASSET & LIABILITIES

ACCOUNT RECEIVABLES                $72,000    $36,000     ($7,200)

INVENTORY                                      ($36,000)  ($18,000)     $18,000

ACCOUNT PAYABLE                        $43,200    ($39,600)    $25,200

ACCRUED LIABILITY                        ($79,200)    $21,600     ($14,400)

NET CASH PROVIDED BY               $61,200    $194,400    $194,400

OPERATING ACTIVITY

Jasmine owned rental real estate that she sold to her tenant in an installment sale. Jasmine acquired the property in 2008 for $1,840,000; took $644,000 of depreciation on it; and sold it for $1,012,000, receiving $101,200 immediately and the balance (plus interest at a market rate) in equal payments of $91,080 for 10 years. What is the nature of the recognized gain or loss from this transaction?

Answers

Answer:

The nature of recognized gain or loss from this transaction is known as capital gain or loss and its important for the computation of individual income taxes

Explanation:

Given the above information, the gain or loss on sale of real estate is computed as;

Original cost

$1,840,000

Less:

Depreciation

($644,000)

Current value of property

$1,196,000

Less:

Sales value

($1,012,000)

Loss on sale

$184,000

Here, there is loss on sale because sales is less than the present value of the property taken into consideration, hence a capital loss is recognized.

ouvenir sheets to stamp collectors. The postal service purchases the souvenir sheets from a supplier for $1.80 each. St. Vincent has been selling the souvenir sheets for $14.00 each and ordinarily sells about 100,000 units. To test the market, the postal service recently priced a new souvenir sheet at $12.60 and sales increased to 114,000 units. Required: 1. What total contribution margin did the postal service earn when it sold 100,000 sheets at a price of $14.00 each

Answers

Answer:

Total contribution margin= $1,220,000

Explanation:

Giving the following information:

Purchase price= $1.8

Selling price= $14

Number of untis= 100,000

First, we will determine the unitary contribution margin:

Unitary contribution margin= selling price - unitary variable cost

Unitary contribution margin= 14 - 1.8

Unitary contribution margin= $12.2

Now, the total contribution margin:

Total contribution margin= 100,000*12.2

Total contribution margin= $1,220,000

Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves $150 Deposits $1,200 Loans $600 Debt $200 Securities $750 Capital (owners' equity) $100 Suppose a new customer adds $100 to his account at Northeastern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account an

Answers

Answer:

A. Increase; Deposits

B. Initial Value 15; New Value 16

C. The aim of Capital requirement is to protect the interests of all depositors.

Explanation:

A. This would increase the loans account and INCREASE the DEPOSITS account since the double entry principle state that every Debit entry must have a corresponding Credit entry and every Credit entry must have a corresponding Debit entry, therefore based on the information given assuming the new customer adds the amount of $100 to his account at the Mutual Bank, which we were told that the owners of the bank then use to make $100 worth of new loans, in this case both the loans and deposits will be have to increase by the amount of $100.

B. Calculation to determine the leverage ratio from its initial value to a new value

Calculation for Leverage Ratio using this formula

Leverage Ratio = Reserves+Loans+Securities/Capital

Let plug in the formula

Leverage Ratio = $150+$600+$750/$100

Leverage Ratio = $1,500/$100

Leverage Ratio =15

Calculation for New Leverage Ratio

Using this formula

New Leverage Ratio=Reserves+(Loans+increase in loans)+Securities/Capital

Let plug in the formula

New Leverage Ratio=$150+($600+$100)+$750/$100

New Leverage Ratio=$150+$700+$750/$100

New Leverage Ratio=$1,600/$100

New Leverage Ratio=16

Therefore This would also bring the leverage ratio from its INITIAL VALUE of 15 to a NEW VALUE of 16

C.The aim of CAPITAL REQUIREMENT is to protect the interests of all depositors.

The distributable net income (DNI) of a fiduciary taxpayer: a.Marks the maximum amount of gross income that income beneficiaries must report when receiving distributions. b.Specifies the character of the distributions in the hands of the year's income beneficiaries. c.Constitutes the maximum amount for the fiduciary's distribution deduction. d.All of these choices are correct.

Answers

Answer: d. All of these choices are correct.

Explanation:

The Distributable Net income is the taxable income acquired by a person who is a beneficiary to a trust from that trust. It is therefore the maximum amount that they should report for taxation purposes when they receive distributions from their trusts.

It also specifies the character of the distribution and is the maximum amount that the fiduciary can deduct for distribution income purposes from their taxable income.

A PROSPECTIVE BUYER SIGNS AN OFFER TO PURCHASE A RESIDENTIAL PROPERTY. ALL THE FOLLOWING CIRCUMSTANCES WOULD AUTTOMATICALLY TERMINATE THE OFFER EXCEPT

Answers

Answer:

WHAT ARE THE CIRCEMENTANCES?

I believe the correct answer is that the offer would NOT be automatically terminated if the seller received a better offer from another buyer

Diamond Company has three product lines, A, B, and C. The following financial information is available:
Item Product Line A Product Line B Product Line C
Sales $30,000 $45,000 $12,000
Variable costs $18,000 $24,000 $7,500
Contribution margin $12,000 $21,000 $4,500
Fixed costs:
Avoidable $4,500 $9,000 $3,000
Unavoidable $3,000 $4,500 $2,000
Operating income $4,500 $7,500 ($500)
Assuming that Product Line C is discontinued and the manufacturing space formerly devoted to this line is rented for $6,000 per year, operating income for the company will likely:____________.
a. Increase by $7,200.
b. Increase by $3,300.
c. Increase by some other amount.
d. Be unchanged—the two effects cancel each other out.
e. Increase by $4,500.

Answers

Answer:

e. Increase by $4,500.

Explanation:

Analysis of the effect of discontinuing Product Line C

Income :

Rent Income                                                    $6,000

Savings : Fixed Costs - Avoidable                 $3,000

Total Income                                                   $9,000

Costs :

Opportunity Cost - Contribution Margin       $4,500

Total Costs                                                      $4,500

Net Income (Loss)                                           $4,500

therefore,

By discontinuing Product Line C, operating income for the company will likely  Increase by $4,500

A property that produces a first year NOI of $80,000 is purchased for $750,000. The NOI is expected stay constant through year 5, and to increase by 15% in the sixth year when some of the leases turn over. The NOI would then stay constant in years 6-10. The resale price in year 10 is expected to be $830,000. What is the net present value of investing in this property based on the 10-year holding period and a required return of 9.5%

Answers

Answer: $115998

Explanation:

Based on the information given, we can calculate the NOI from the 6th year which will be:

= $80,000 × (100% + 15%)

= $80,000 × 115%

= $80,000 × 1.15

= $92,000

Therefore, the net present value of the property based on the 10-year holding period and a discount rate of 9.5% will be:

= 80000(PVAF, 5 year) + 92000[PVAF,(10-5),9.5%] + 830000/(1.095)10-750000

= (80000 × 3.839) + (92000 × 2.439) + (830000 × 0.403) - 750000

= 307120 + 224388 + 334490 - 750000

= 865998 - 750000

= $115998

Therefore, the net present value is $115998

Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $95,500) is worth $114,600 and Johnathan's land has a fair market value of $90,725, Johnathan also gives Logan cash of $23,875.
a. What is Logan's recognized gain?
b. Assume instead that Johnathan's land is worth $90,000 and he gives Logan $10,000 cash. Now what is Logan's recognized gain?

Answers

Answer:

A. $19,100 Recognized Gain or Fairmarket Value of ($23,875).

B.$19,100 Recognized Gain or Fairmarket Value of ($10,000).

Explanation:

a. Calculation to determine Logan's recognized gain

Based on the given information in a situation where Jonatha land is worth the amount of $90,725, which means Logan's RECOGNIZED GAIN will be $19,100, the lower of the REALIZED GAIN calculated as ($114,600 amount realized − $95,500 adjusted basis = $19,100) or the FAIRMARKET VALUE of the boot received of the amount of ($23,875).

b. Based on the information given assuming Johnathan and is been worth the Amount of $90,000 which therefore means that Logan's RECOGNIZED GAIN will be the amount of $19,100, the lower of the realized gain calculated as ($114,600 amount realized − $95,500 adjusted basis = $19,100) or the FAIRMARKET VALUE of the boot received OLog the amount of ($10,000).

5. Which of the following statements is false? A) The incentives come from owning stock in the company and from compensation that is sensitive to performance. B) The role of the corporate governance system is to mitigate the conflict of interest that results from the combination of ownership and control without unduly burdening managers with the risk of the firm. C) Punishment comes when a board fires a manager for poor performance or fraud, or when, upon failure of the board to act, shareholders or raiders launch control contests to replace the board and management. D) The corporate governance system attempts to align interests by providing incentives for taking the right action and punishments for taking the wrong action. E) None of the above

Answers

Answer: B) The role of the corporate governance system is to mitigate the conflict of interest that results from the combination of ownership and control without unduly burdening managers with the risk of the firm.

Explanation:

Corporate governance has to do with the combination of laws, rules, and processes through which businesses are being operated, regulated. Corporate governance comprises of both the internal factors and the external factors which has an impact on the interests of the stakeholders in the company.

From the options given, the option that is false is B. It should be noted that the role of corporate governance system isn't about mitigating conflict of interest which arises from the combination of ownership and control.

Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected Benefit Obligation Plan Assets Value
2019 $2,000,000 $1,900,000
2020 2,400,000 2,500,000
2021 2,950,000 2,600,000
2022 3,600,000 3,000,000
The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $280,000 loss; 2020, $90,000 loss; 2021, $11,000 loss; and 2022, $25,000 gain.
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.

Answers

Answer:

10%Corridor

2011 $0

2012 $250,000

2013 $295,000

2014 $360,000

Accumulated

2011 $0

2012 $280,000

2013 $367,000

2014 $372,000

Minimum Amortization of Loss

2011 $0

2012 $3,000

2013 $6,000

2014 $1,000

Explanation:

Calculation to determine the net gain or loss amortized and charged to pension expense under the corridor approach

Year, Projected Benefit Obligation (a) , Plan Assets, 10%Corridor, Accumulated d OCI (G/L) (a), Minimum Amortization of Loss

2011 $2,000,000 $1,900,000 $200,000 $ 0 $0

2012 $2,400,000 $2,500,000 $250,000 $280,000 $3,000(b)

2013 $2,950,000 $2,600,000 $295,000 $367,000(c) $6,000(d)

2014 $3,600,000 $3,000,000 $360,000 372,000(e) $1,000(f)

Calculation for 10%Corridor

2011 $0

2012 10%*$2,500,000 =$250,000

2013 10%*$2,950,000 =$295,000

2014 10%*$3,600,000 =$360,000

Calculation for Accumulated Depreciation and Minimum Amortization of Loss

a. As at the beginning of the year

b. ($280,000 – $250,000) ÷ 10 years = $3,000

c. $280,000 – $3,000 + $90,000 = $367,000

d. ($367,000 – $295,000) ÷ 12 years = $6,000

e. $367,000 – $6,000 + $11,000 = $372,000

f ($372,000 – $360,000) ÷ 12 years = $1,000

Therefore the net gain or loss amortized and charged to pension expense under the corridor approach are :

10%Corridor

2011 $0

2012 $250,000

2013 $295,000

2014 $360,000

Accumulated Depreciation

2011 $0

2012 $280,000

2013 $367,000

2014 $372,000

Minimum Amortization of Loss

2011 $0

2012 $3,000

2013 $6,000

2014 $1,000

Jose Consulting paid $540 cash for utilities for the current month. Determine the general journal entry that Jose Consulting will make to record this transaction. Multiple Choice Utilities Expense 540 Cash 540 Cash 540 Utilities Expense 540 Cash 540 Accounts Payable 540 Utilities Expense 540 Accounts Payable 540 Prepaid Utilities 540 Accounts Payable 540

Answers

Answer: Utilities Expense 540 Cash 540

Explanation:

Journal entry simply refers to the recording of transactions in a company's books. It should be noted that every transaction entered in the general ledger begins with a journal entry.

With regards to the question, the journal entry will be:

Debit Utilities expense $540

Credit Cash $540

A firm has an average loan outstanding of $75,000,000 on a $100,000,000 line of credit. There is a commitment fee of 0.25% on the unused portion of the line, and the interest rate on the borrowed funds is LIBOR 175 basis points. LIBOR is 3.0%. What is the effective annual borrowing rate on the line of credit

Answers

Answer:

2.44%

Explanation:

Average outstanding loan = $75,000,000

Total line of credit = $100,000,000

Unused portion = $25,000,000 ($100,000,000-$75,000,000)

Commitment fee = 0.25%

Interest rate = 3.175% (3+0.175%)

Commitment fee = Unused portion*Commitment fee rate

Commitment fee = $25,000,000*0.0025

Commitment fee = $62,500

Interest = Average outstanding balance*Interest rate

Interest = $75,000,000*0.03175

Interest = $2,381,250

Total borrowing cost = Commitment fee + Interest

Total borrowing cost = $62,500 + $2,381,250

Total borrowing cost = $2,443,750

Effective borrowing rate = Total borrowing cost / Credit limit

Effective borrowing rate = $2,443,750/$100,000,000

Effective borrowing rate = 0.0244375

Effective borrowing rate = 2.44%

Suppose that you are considering purchasing an investment property for $30 million. The property is expected to have a year 1 net operating income of $1.8 million. You expect to finance the purchase of the property with a 30-year loan for 60% of the purchase price. If the annual interest rate on the loan is 5% with monthly payments and monthly compounding, what will the year 1 before-tax cash flow be for the property

Answers

Answer:

b. $640,465.32

Explanation:

Options include "$1,800,000, $640,465, ($132,558), $614,846, $704,512"

I/Y = 0.42% [5%/12]

N = 360 [12*30]

PV = -$18,000,000 [-30000000*60%]

FV = $0

So, we calculate the PMT using financial calculator

Monthly payment (CPT)  = PMT(I/Y. N, PV, FV)

Monthly payment (CPT)  = PMT(0.42%. 360, 18000000, 0)

Monthly payment (CPT)  = $96,627.89

Before-tax cash flow = Expected year 1 net operating income - 12*PMT

Before-tax cash flow = $1,800,000 - 12*$96,627.89

Before-tax cash flow = $1,800,000 - $1,159,534.68

Before-tax cash flow = $640,465.32

Direct Labor Variances
The following data relate to labor cost for production of 22,000 cellular telephones:
Actual: 4,220 hrs. at $44.50
Standard: 4,160 hrs. at $46.00
a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Rate variance $
Time variance $
Total direct labor cost variance $
b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was than standard.

Answers

Answer:

Explanation:

a. The Direct labor rate variance will be:

= 4220 × (44.5 - 46)

= 4220 × -1.5

= -6330 Favorable

The direct labor time variance will be:

= 46 × (4220-4160)

= 46 × 60

= 2760 Unfavorable

Total direct labor cost variance will be:

= (4220 × 44.5) - (4160 × 46)

= 187790 - 191360

= -3570 Favorable

b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a (lower) labor rate than planned.

The lower level of experience or training may have resulted in (less) efficient performance. Thus, the actual time required was (more) than standard.

Crane Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $144000, the present value of the lease payments discounted at 8%. The first of eight annual lease payments of $21500 due at the beginning of each year of the lease term was received and recorded on July 3, 2021. Crane had purchased the equipment for $113000. What amount of interest revenue from the lease should Crane report in its 2021 income statement

Answers

Answer:

$4,900

Explanation:

Calculation to determine What amount of interest revenue from the lease should Crane report in its 2021 income statement

Interest revenue=8%/2*($144000 - $21500)

interest revenue=4%*$122,500

interest revenue = $4,900.

Therefore the amount of interest revenue from the lease should Crane report in its 2021 income statement is $4,900

Consider the following information for Watson Power Co.: Debt: 3,500 7 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 102 percent of par; the bonds make semiannual payments. Common stock: 84,000 shares outstanding, selling for $59 per share; the beta is 1.06. Preferred stock: 10,000 shares of 6 percent preferred stock outstanding, currently selling for $104 per share. Market: 8.5 percent market risk premium and 5.5 percent risk-free rate. Assume the company's tax rate is 35 percent. Find the WACC.

Answers

Answer:

9. 82 %

Explanation:

WACC = Cost of equity x Weight of equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt.

Remember to always use the After tax cost of debt :

Cost of Debt :

PV = - $1,020

FV = $1,000

N = 20 x 2 = 40

P/YR = 2

PMT = ($1,000 x 7 %) ÷ 2 = $35

I/YR = ???

The Cost (I/YR) is calculated as 6.82 %. The  After tax cost of debt is 4.433 %.

Cost of Equity :

Cost of Equity = Return from risk free security + beta x market premium'

                        = 5.5 % + 1.06 x 8.5 %

                        = 14.51 %

Cost of Preferred Stock :

Cost of Preferred Stock = 6 %

therefore,

WACC = 14.51 % x 51.8 % +  6 % x 10.87 %+ 4.433 % x 37.3 %

            = 9. 82 %

Web Cites Research projects a rate of return of 20% on new projects. Management plans to plow back 30% of all earnings into the firm. Earnings this year will be $3 per share, and investors expect a 12% rate of return on stocks facing the same risks as Web Cites. a. What is the sustainable growth rate

Answers

Answer:

6%

Explanation:

Sustainable growth rate is the rate of growth a company can afford in the long term

Sustainable growth rate (g)  = b x ROE

b = retention rate. It is the portion of earnings that is not paid out as dividends = 30%

ROE = return on equity = 20%

Return on equity is an example of a profitability ratio.

Profitability ratios measure the ability of a firm to generate profits from its asset

g = 0.3 x 0.2 = 0.06 = 6%

Based on the information given  the sustainable growth rate is 6%.

Using this formula

Sustainable growth rate= ROE × Plowback ratio

Where:

ROE=20%

Plowback ratio=30%

Let plug in the formula

Sustainable growth rate = 0.20 × 0.30

Sustainable growth rate=0.06×100

Sustainable growth rate= 6.00%

Inconclusions the sustainable growth rate is 6%.

Learn more here:https://brainly.com/question/14279774

Brightstone Tire and Rubber Company has capacity to produce 204,000 tires. Brightstone presently produces and sells 156,000 tires for the North American market at a price of $100 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 24,000 tires for $86.5 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows:

Direct materials $54
Direct labor 24
Factory overhead (62% variable) 24
Selling and administrative expenses (44% variable) 25
Total $127.00

Brightstone pays a selling commission equal to 4% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $7.65 per tire. In addition, Euro has made the order conditional on receiving European safety certification. Brightstone estimates that this certification would cost $165,424.

Required:
a. Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors.
b. Determine whether the company should reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors
c. What is the minimum price per unit that would be financially acceptable to Brightstone?

Answers

Answer:

Brightstone Tire and Rubber Company

a. Differential Analysis dated January 21

                                                  Alternative 1         Alternative 2

                                                      Reject                   Accept

Revenue from special order   ($2,076,000)        $2,076,000

Avoidable costs                           2,493,120            2,831,520

Cost Differential                           ($417,120)          ($755,520)

b. The company should reject the special order from Euro Motors as it will incur more costs when it accepts than when it rejects the special order.

c. The minimum price per unit that would be financially acceptable to Brightstone is $117.98.

Explanation:

a) Data and Calculations:

Production capacity in tires = 204,000

Current production and sales units = 156,000

Selling price per tire for the North American market = $100

Special order of 24,000 tires from Euro Motors = $86.50 per tire

Total cost per tire:                                                      Total     Variable

Direct materials                                                          $54         $54

Direct labor                                                                   24           24

Factory overhead (62% variable)                                24            14.88

Selling and administrative expenses (44% variable) 25             11

Total                                                                          $127.00  $103.88

Special Order:

Offer price =                    $86.50

                                                               Reject                   Accept

Variable cost per unit    $103.88        $2,493,120          

Less selling commission    (0.44)

Additional shipping cost      7.65

Cost of certification             6.89

Total per unit costs =      $117.98                                    $2,813,520

Operating income (loss) ($31.48)

Coolidge Cola is forecasting the following income statement: Sales $30,000,000 Operating costs excluding depr and amort 20,000,000 EBITDA $10,000,000 Depreciation and amortization 5,000,000 Operating income (EBIT) $ 5,000,000 Interest expense 2,000,000 Taxable income (EBT) $ 3,000,000 Taxes (40%) 1,200,000 Net income $ 1,800,000 Assume that depreciation is Coolidge's only non-cash revenue or expense. Congress is considering a proposal allowing companies to depreciate their equipment at a faster rate. If approved, Coolidge's new depreciation expense would be $8,000,000, although there would be no effect on the economic value of the company's equipment, nor would it affect the company's tax rate, which would remain at 40%. If this proposal were implemented, what would be the company's net cash flow

Answers

Answer:

new net cash flow = $8,000,000

Explanation:

Current net cash flow before any change approved by Congress = net income + deprecaition expense = $1,800,000 + $5,000,000 = $6,800,000

Cash flow after Congress approves change = net income + new depreciation expense:

taxable income = $10,000,000 - $8,000,000 - $2,000,000 = $0

deprecaitione xpense = $8,000,000

new net cash flow = $8,000,000

Examine this supply and demand graph for a product. What does the red dot
on the graph represent?
Demand
$5
Supply
$4
Price
$3
$2
$1
0
2
4
5
Quantity
O A. The product's equilibrium price
O B. The product's quantity demanded
O C. The product's quantity supplied
O D. The product's supply schedule

Answers

The product’s equilibrium price

Just simply because the price and quantity is the same

The red dot on the graph represents the product's equilibrium price.

What do you mean by demand and supply?

Demand refers to the consumer's desire and ability in order to purchase a good or service at a given period of time. There is an inverse relationship between demand and price. When price of a product increases, the demand decreases and vice versa.

Supply refers to the total amount of a given product or service a supplier offers to consumers at a given period of time. Supply is usually determined by market movement.

What does the supply and demand graph indicate?

The supply and demand graph indicates the relationship between quantity supplied and the quantity demanded. In the graph it is seen that the demand curve and supply curve meet a point, which is the point of intersection (the red dot) and also the point of equilibrium.

Equilibrium is a state of rest. At equilibrium demand matches supply at the same price. If a market is at its equilibrium price and quantity, then it has no reason to move away from that point, as it's balancing both, quantity supplied and the quantity demanded.

However, in the graph the equilibrium price represents the point where the supply of a product is equal to the demand for that product. Thus, red dot on the graph represents the product's equilibrium price where supply meets demand.

Hence, option A is correct.

To learn more about demand and supply here:

https://brainly.com/question/13590042

#SPJ2

Kiley Corporation had these transactions during 2022. Classify transactions by type of activity.
a. Purchased a machine for $30,000, giving a long-term note in exchange.
b. Issued $50,000 par value common stock for cash.
c. Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
d. Declared and paid a cash dividend of $13,000.
e. Sold a long-term investment with a cost of $15,000 for $15,000 cash.
f. Collected $16,000 from sale of goods.
g. Paid $18,000 to suppliers.

Answers

Answer:

Cash flow from Operating Activities

f. Collected $16,000 from sale of goods.

g. Paid $18,000 to suppliers.

Cash flow from Investing Activities

e. Sold a long-term investment with a cost of $15,000 for $15,000 cash.

Cash flow from Financing Activities

b. Issued $50,000 par value common stock for cash.

d. Declared and paid a cash dividend of $13,000.

None-Cash Activity

a. Purchased a machine for $30,000, giving a long-term note in exchange.

c. Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.

Explanation:

Operating Activities - Results from business daily trading operations with customers and suppliers.

Investing Activities - Results from purchases and sell of assets and investments

Financing Activities - Results from a company`s efforts in raising and repayment of capital

The amounts reported for assets and liabilities in the total column for the combining balance sheet for nonmajor governmental funds are also reported in the other governmental funds column of the governmental funds balance sheet.
A. True
B. False

Answers

Answer: True

Explanation:

Governmental funds refers to the assets, money, or property, of the government.

It should be noted that the non major governmental fund is also a form of fund as well and therefore, the amounts that are reported for assets and liabilities in the total column for the combining balance sheet for the nonmajor governmental funds will also have to be reported in the other governmental funds column of the governmental funds balance sheet.

Therefore, the correct option is True

Other Questions
What factors influence voters and election campaigns? A balloon contains 25.0 L of helium gas at 177 kPa. What is the volume when the balloon rises to an altitude where the pressure is only 43.0 kPa ? Assume the temperature remains constant.A.34.2 LB.68.8 LC.46.5 LD.103 L George has been playing a video game for ten minutes and is in the middle of a challenging level. Ashley comes in and says that she has to leave for the dentist in a half hour. She's nervous and wants to relax by playing a dance game on the game system. Which of the following is the best definition of an opinion? Information that cannot be proven true or false. C. Something that b. Information that is incorrect. d. An argument. 19 Which of the following is equivalent to 2(12-6n+9)- Z(n? - En+9)? =1 19 (n- 32 =10 19 (n-32 19 (n+ 3)? =10 19 (n+ 3)?EDGE ASAP!!!! Janes, Inc., is considering the purchase of a machine that would cost $410,000 and would last for 5 years, at the end of which, the machine would have a salvage value of $41,000. The machine would reduce labor and other costs by $101,000 per year. Additional working capital of $3,000 would be needed immediately, all of which would be recovered at the end of 5 years. The company requires a minimum pretax return of 13% on all investment projects.Required:Determine the net present value of the project. (Negative amount should be indicated by a minus sign.) suppos f(x) = x^3 find the graph of f(x+1) 2. Does a topic sentence need to berelated to the information that will bediscussed in the paragraph?O yesOno Two tanks contain equal amount of liquid. They are connected by a pipe and 2500 gallons ispumped from tank 1 to tank 2. When the pumping is done, one tank then contains 5 times asmuch as the other. How many gallons did each tank contain at the start? Your carry-on bag can weigh at most 40 pounds.Select an inequality that represents how much more weight x (in pounds) you can add to the bag and seal meet the requirement. Then solve the inequality. help. complete with the correct preterite verb endingy quien pag__? anita pag__ 5. If you were to be starting your own personal fitness journey for the first time right now, based on everything that you have learned in the unit, where would you begin? What would be some important first steps for you to take? Describe what your personal fitness motivations, goals, and concerns would be. What is the side length of the smaller square plate on which 36 CM chopstick can fit along a diagonal without any overhang The graphs below have the same shape. What is the equation of the bluegraph? Which document held the provision that a person could NOT be considered guilty of a crime with no body of evidence against them? A. Writ of Habeas Corpus B. English Bill of Rights C. Petition of Right D. Magna Carta A cylinder has a base radius of 3cm and a height of 2cm. What is its volume in cubiccm, to the nearest tenths place? y are selling lollipops for $0.50 and candy bars for $1.50. Lydia buys 6 lollipops and some candy bars. If she spends $15 in total, how many candy bars, b, did Lydia buy? Jamie went deep sea diving. If he descends at a rate of 4 feet per minute, what integer represents his depth after 8 minutes? What slide lists your research material?O A. Key pointB. Works citedOC. Title slideOD. IntroductionReset Selection why was the monroe doctrine a significant foreign policy achievement during the 18