WalkLikeYou, Corp. is a specialty athletic shoe manufacturer which uses a job order costing system. The following information below is given for WalkLikeYou:
As of January 31 As of February 28
Inventory account balances:
Raw materials inventory $42,000 $30,000
Work in process inventory $9,200 $20,600
Finished goods $56,000 $33,500
Additional information for the month ended February 28:
Raw materials purchased $198,000
Factory payroll $150,000
Actual factory overhead costs:
Indirect materials $15,000
Indirect labor $34,500
Other overhead costs $13,500
Sales $1,100,000
Predetermined overhead rate (based on direct labor costs) = 55% of DL costs
Compute the following amounts for the month of February. You must show all of your work, either using formulas or using T-accounts.
a. Cost of direct materials used.
b. Total manufacturing costs.
c. Cost of goods manufactured.
d. Cost of goods sold.(ignore effects of underapplied / overapplied overhead)
e. Gross profit.
f. Overapplied or underapplied overhead.

Answers

Answer 1

Answer:

a.  $195,000

b.  $423,525

c.  $412,125

d.  $434,625

e.  $665,375

f.   $525 over-applied

Explanation:

a. Cost of direct materials used.

Cost of direct materials used = Opening Materials Inventory + Materials Purchase - Ending Materials Inventory - Indirect materials

                    = $42,000 + $198,000 - $30,000 - $15,000

                    = $195,000

b. Total manufacturing costs.

Total manufacturing costs = Variable Manufacturing Costs + Fixed Manufacturing Costs

Total manufacturing costs calculation

Direct materials                                                         $195,000

Direct Labor ($150,000 - $34,500)                          $115,500

Indirect materials                                                        $15,000

Indirect labor                                                              $34,500

Other overhead costs - applied ($115,500 x 55%)  $63,525

Total Cost                                                                 $423,525

c. Cost of goods manufactured.

Cost of goods manufactured = Opening Work In Process + Total manufacturing costs - Closing Work In Process

                                                = $9,200 + $423,525 - $20,600

                                                = $412,125

d. Cost of goods sold.

Cost of goods sold = Opening Finished Goods Inventory + Cost of goods manufactured - Closing Finished Goods Inventory

                                = $56,000 + $412,125 -  $33,500

                                = $434,625

e. Gross profit.

Gross profit = Sales - Cost of goods sold

                    = $1,100,000 - $434,625

                    = $665,375

f. Overapplied or underapplied overhead

If Actual Overheads > Applied Overheads, we have under-applied overheads

and

If Applied Overheads > Actual Overheads, we have over-applied overheads

where,

Actual Overheads =  $15,000 + $34,500 + $13,500 = $63,000

Applied Overheads = $63,525

Over-applied overheads = Applied Overheads - Actual Overheads

                                         = $63,525 - $63,000

                                         = $525


Related Questions

Marriott International is a worldwide operator, franchisor, and licensor of hotels, residential, and timeshare properties totaling nearly $1.8 billion in net property and equipment. Assume that Marriott replaced furniture that had been used in the business for five years. The records of the company reflected the following regarding the sale of the existing furniture:Furniture (cost) Accumulated depreciation $8,000,000 7,700,000 Required: Prepare the journal entry for the disposal of the furniture, assuming that it was sold for: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars not in millions.) a. $300,000 cash b. $900,000 cash c. $100,000 cash

Answers

Answer:

Net Book Value of furniture:

= Cost price - Accumulated depreciation

= 8,000,000 - 7,700,000

= $300,000

a. $300,000 cash

        Account Title                                                        Debit                Credit

        Cash                                                               $300,000

        Accumulated Depreciation                         $7,700,000

        Furniture                                                                                 $8,000,000

b. $900,000 cash

       Account Title                                                        Debit                Credit

        Cash                                                               $900,000

        Accumulated Depreciation                        $7,700,000

        Furniture                                                                                 $8,000,000

       Gain on disposal                                                                      $600,000

c. $100,000 cash

       Account Title                                                        Debit                Credit

        Cash                                                               $100,000

        Accumulated Depreciation                          $7,700,000

       Loss on Disposal                                            $200,000

       Furniture                                                                               $8,000,000

Rhonda has an adjusted basis and an at-risk amount of $12,400 in a passive activity at the beginning of the year. She also has a suspended passive activity loss of $2,480 carried over from the prior year. During the current year, she has a loss of $19,840 from the passive activity. Rhonda has no passive activity income from other sources this year. Determine the following items relating to Rhonda's passive activity as of the end of the year. At year-end, Rhonda has the following:

a. Adjusted basis in the passive activity: __________
b. Loss suspended under the at-risk rules: _________
c. Suspended passive activity loss: ___________

Answers

Answer:

A. $0

B. $7,440

C. $14,880

Explanation:

a. Based on the information given Rhonda Adjusted basis in the passive activity will be $0

Therefore The Adjusted basis in the passive activity will be $0

b. Calculation to determine the Loss suspended under the at-risk

Loss suspended under the at-risk =$19,840-$12,400

Loss suspended under the at-risk =$7,440

Therefore The Loss suspended under the at-risk will be $7,440

C. Calculation to determine the Suspended passive activity loss

Suspended passive activity loss=$12,400+$2,480

Suspended passive activity loss=Suspended passive activity loss=$14,880

Therefore The Suspended passive activity loss wi be $14,880

Break-Even Sales Currently, the unit selling price of a product is $1,500, the unit variable cost is $1,200, and the total fixed costs are $4,500,000. A proposal is being evaluated to increase the unit selling price to $1,600. a. Compute the current break-even sales (units). fill in the blank 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. fill in the blank 2 units

Answers

Answer and Explanation:

a. The computation of the current break-even sales (units) is shown below:

= Fixed cost ÷ (Selling price - variable cost)

= $4,500,000 ÷ ($1,500 - $1,200)

= $4,500,000 ÷ $300 units

= 15,000 units

b. The anticipated break-even sales (units) is

= Fixed cost ÷ (Selling price - variable cost)

= $4,500,000 ÷ ($1,600 - $1,200)

= $4,500,000 ÷ $400 units

= 11,250 units

On January 1, 2020, ABC Corporation had 990,000 shares of common stock outstanding. On March 1, the corporation issued 150,000 new shares to raise additional capital. On May 1, the company issued a 5% stock dividend. On July 1, the corporation declared and issued a 3-for-1 stock split. On October 1, the corporation repurchased on the market 400,000 of its own outstanding shares and retired them.
Instructions:
Compute the weighted average number of shares to be used in computing earnings per share for 2020.

Answers

Answer:

ABC Corporation

The weighted-average number of common stock shares to be used in computing the earnings per share for 2020 is:

= 1,452,500.

Explanation:

a) Data and Calculations:

The Weighted-average number of shares to be used in computing earnings per share for 2020:

2020                   Description                            Number    Weight   Result

January 1,   Outstanding common stock         990,000   12/12     990,000

March 1,      New issue of common stock         150,000    10/12     125,000

May 1,         5% Stock dividend (1,140,000 *5%) 57,000      8/12      38,000

July 1,         3-for-1 stock split (1,197,000/3)      399,000     6/12     199,500

October 1,  Treasury stock                              (400,000)     3/12    100,000

Weighted-average number of common stock shares                1,452,500

Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13,500.
1) The common stock has a market value of $20 per share, and the preferred stock has a market value of $90 per share.
2) The common stock has a market value of $20 per share, and the value of preferred stock is unknown.
Prepare the journal entry to record the issuance. (Round answers to 0 decimal places, e.g., 1520. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation Debit Credit

Answers

Answer:

A. Dr Cash $13,500

Cr Preferred Stock $5,000

Cr Common Stock $3,000

Cr PICEP-preferred 3,100

Cr PICEP-Common 2,400

B. Dr Cash 13,500

Cr Common Stock 3,000

Cr PICEP-(c/s) 3,000

Cr Preferred stock 5,000

Cr PICEP (p/s) 2,500

Explanation:

Preparation of the journal entry to record the issuance

Dr Cash $13,500

Cr Preferred Stock $5,000

(100 shares * $50)

Cr Common Stock $3,000

(300 shares * $10)

Cr PICEP-preferred 3,100

($8,100-$5,000)

Cr PICEP-Common 2,400

($5,400-$3,000)

Preferred share$90*100) $9000

Common stock($20*300) $6000

Total $15,000

$9000/$15000*$13500

=$8,100

$6000/$15000*$13,500

=$5,400

B.

Cash 13,500

Common Stock 3,000

(300 shares * $10)

PICEP-(c/s) 3,000

(300 shares * $10)

Preferred stock 5,000

(100 shares * $50)

PICEP (p/s) 2,500

[13,500-($20*300)]-$5,000

= $7,500-$5,000

=$2,500

You purchased a 5-year annual interest coupon bond one year ago. Its coupon interest rate was 6% and its par value was $1,000. At the time you purchased the bond, the yield to maturity was 4%. Suppose you decided sell the bond after receiving the first interest payment and the bond's yield to maturity had just changed to 3% , what would your annual total rate of return on holding the bond for that year have been approximately?

Answers

Answer:

Bond purchase price

Face value (FV) = $1,000

Coupon rate = 6.00%

Number of compounding periods per year = 1

Interest per period (PMT) = 60.00

Number of years to maturity = 5

Number of compounding periods till maturity (NPER) = 5

Market rate of return/Required rate of return = 4.00%

Market rate of return/Required rate of return per period (RATE) = 4.00%

Bond price = PV(RATE,NPER,PMT,FV)

Bond price = $1,089.04

Bond selling price:

Face value (FV) = $1,000

Coupon rate = 6.00%

Number of compounding periods per year = 1

Interest per period (PMT) = $60.00

Number of years to maturity = 4

Number of compounding periods till maturity (NPER) = 4

Market rate of return/Required rate of return = 3.00%

Market rate of return/Required rate of return per period (RATE) = 3.00%

Bond price = PV(RATE,NPER,PMT,FV)

Bond price = $1,111.51

Return during one year = Bond selling price - Bond purchase price + Interest per period) / Bond purchase price

Return during one year = ($1,111.51 - $1,089.04 + $60) / $1,089.04

Return during one year = $82.47 / $1,089.04

Return during one year = 0.075727246

Return during one year = 7.57%

Duration measures Group of answer choices weighted-average time until a bond's half-life. weighted-average time until cash flow payment. the time required to make excessive profit from the investment. weighted-average time until a bond's half-life and the time required to make excessive profit from the investment. weighted-average time until cash flow payment and the time required to make excessive profit from the investment.

Answers

Answer:

weighted average time until cash flow payment.

Explanation:

Duration is simply known as a market value based model. It was set up so as to be able to manage interest rate risk. It is also defined as the effective measure of the interest rate risk of an asset.

Duration is commonly known as the weighted average time to maturity of a loan (fixed-income instrument) using the relative PV's of the CF's as weights. It is used commonly in bond investment and analysis application. it can be applied to individual fixed income instruments, a liability, or an entire portfolio.

features of duration includes: duration and maturity, duration & yield and duration & coupon.

The Extreme Reaches Corp. last paid a $1.50 per share annual dividend. The company is planning on paying $3.00, $5.00, $7.50, and $10.00 a share over the next four years, respectively. After that the dividend will be a constant $2.50 per share per year forever. What is the market price of this stock if the market rate of return is 15 percent

Answers

Answer:

Market price of share = $26.57

Explanation:

According to the dividend valuation model, the value of a stock is the present value of the expected future dividends from the stock discounted at the the required rate of return.

The required  rate of return here is 15%

The dividend growth model a be applied to each of the years as appropriate.

The share price of Extreme Reaches Corp can be computed as follows:

Year                     working                  Present value of Dividend  

1                          3.00 × (1.15) ×(-1) =        2.61

2                             5× (1.15)^(-2) =           3.78

3                            7.50× (1.15^(-3) =         4.93

4                             10.0×  1.15^(-4) =         5,72

5  to infinity        (see working)     =           9.52

Present value                                               26.57

Working

Present value of dividend from Year 5 to infinity

PV (in year 4) of dividend from  year 5 to infinity = 2.50× 1/(1.15)= 16.66

Present value in year 0 = PV in year 4× 1.15^(-4)

Present value in year 4 = 16.66× 1.15^(-4) = 9.52

Market price of share = $26.57

The law of supply indicates that:A)the product supply curve is downsloping.B)consumers will purchase less of a good at high prices than they will at low prices.C)producers will offer more of a product at high prices than they will at low prices.D)producers will offer more of a product at low prices than they will at high prices.

Answers

Answer:

C) producers will offer more of a product at high prices than they will at low prices.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

The law of supply indicates that producers will offer more of a product at high prices than they will at low prices.

In order to understand both short-run economic fluctuations and how the economy move from short to long run, we need the aggregate supply and aggregate demand model.

When the price level rises, the wealth effect and the interest-rate effect provide incentives for consumers to spend less. The price level of goods and services in an economy influences the exchange rate, imports and exports.

An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.

When the price of a good is $5, the quantity demanded of a good is 30 units, and the quantity supplied of the good is 50 units. For every $1 decrease in the price of this good, quantity demanded rises by 5 units and quantity supplied falls by 5 units. The equilibrium price of this good is ___________and the equilibrium quantity of this good is _________ units.

Answers

Answer:

the equilibrium price is $3 and equilibrium quantity is 40

Explanation:

The computation of the equilibrium price and quantity is shown below:

Price       Quantity demanded          Quantity supplied

$5                 30                                     50

$4                  35                                     45

$3                  40                                     40

$2                  45                                      35

$1                   50                                      30            

The equilibrium price is the price where the quantity demanded is equivalent to the quantity supplied        

So the equilibrium price is $3 and equilibrium quantity is 40

An advantage of a corporation is that
A
owners pay fewer taxes than owners of other forms of business.
B
the business is subject to little government regulation.
с
owners have limited liability for debt.
D
owners have direct and immediate control over daily management of the business.

Answers

Answer:

Explanation:

An advantage of a corporation is that owners have limited liability for debt.

The advantage of a corporation is that owners have limited liability for debt. Thus, option (c) is correct.

This means that the corporate entity shields the shareholders from liability beyond the value of their investments, so protecting their personal assets.

When a company regularly assumes significant risks for which it could be held liable, limited liability is a distinct advantage. A corporation also offers protection from personal liability, continuity, and security for the business, quicker access to financing, and simple ownership transfers.

Therefore, option (c) is correct.

Learn more about on corporation, here:

https://brainly.com/question/30029715

#SPJ6

The bond, which has a $1,000 face value and a coupon rate equal to 10 percent, matures in six years. Interest is paid every six months; the next interest payment is scheduled for six months from today. Assuming the yield on similar risk investments is 14 percent, calculate the current market value (price) of the bond.

Answers

Answer:

Market value of bond = 841.14

Explanation:

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate.

Value of Bond = PV of interest + PV of RV

The value of bond  can be worked out as follows:

Step 1  

Calculate the PV of interest payments

Semi annual interest payment

= 10% × 1,000× 1/2 = 50

PV of interest payment

A ×(1- (1+r)^(-n))/r

r- semi-annual yield = 14%/2 = 7%

n- 6× 2 = 12

= 50× (1-(1.07^(-12)/0.07

= 397.13

Step 2

PV of redemption Value

PV = $1000 × (1.07)^(-12)

= 444.011

Step 3

Price of bond

= 397.13 +444.01

=841.14

Market value of bond = 841.14

Trell Corporation transferred $56,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 80% of the factored amount to Trell and retains the remaining 20%. When the bank collects the receivables, it will remit to Trell the retained amount less a fee equal to 3% of the total amount factored. Trell estimates a fair value of its 20% interest in the receivables of $11,000 (not including the 3% fee). Trell will show an amount receivable from factor of:

Answers

Answer:

$9,320

Explanation:

Calculation to determine what Trell will show as the amount receivable from factor of:

Using this formula

Amount receivable =Interest in the receivables-( Local bank transferred accounts receivable*Fees percentage)

Let plug in the formula

Amount receivable=$11,000 - ($56,000 × 3%)

Amount receivable=$11,000-$1,680

Amount receivable= $9,320

Therefore Trell will show an amount receivable from factor of:$9,320

Suppose that you could either prepare your own tax return in 12 hours or hire a tax specialist to prepare it for you in 3 hours. You value your time at $25.00 an hour; the tax specialist will charge you $60 an hour. The opportunity cost of preparing your own tax return is

Answers

Answer:

$300

Explanation:

Opportunity cost also known as Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

By choosing to do my tax, i am forging the value of my time which is $25 per hour.

If i do my returns i would be spending 12. total value of time = 25 x12 = 300

the amount i would pay the specialist is my explicit cost

Oriole Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $890,082. The purchase agreement specifies an immediate down payment of $216,000 and semiannual payments of $83,108 beginning at the end of 6 months for 5 years. What is the interest rate, to the nearest percent, used in discounting this purchase transaction

Answers

Answer:

Annual rate = 8%Semiannual rate = 4%

Explanation:

The present value of the amount that is to be paid periodically:

= Fair value - Down payment

= 890,082 - 216,000

= $674,082

This is a semi annual payment so the variables need to be converted as such:

Period = 5 years * 2 = 10 semi annual periods

This payment is constant so it is an annuity.

Present value of annuity = Annuity * Present value interest factor, 10 periods, x percent

674,082 = 83,108 *  Present value interest factor, 10 periods, x percent

Present value interest factor, 10 periods, x percent = 674,082 / 83,108

= 8.1109

If checked in the PVIFA Table, 8.1109 at 10 periods corresponds with 4%.

The annual interest rate is therefore:

= 4% * 2

= 8%

Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following. Units to be produced (by quarters): 10,800, 12,400, 14,900, 16,200. Direct labor: Time is 1.6 hours per unit. Variable overhead costs per direct labor hour: indirect materials $0.90; indirect labor $1.30; and maintenance $0.50. Fixed overhead costs per quarter: supervisory salaries $37,500; depreciation $18,390; and maintenance $13,960. Prepare the manufacturing overhead budget for the year, showing quarterly data.

Answers

Answer:

The manufacturing overhead budget for the year - Each Quarter

Explanation:

Make sure you find the Total Variable Cost for each quarter

Total Variable Cost = Units Produced x Unit Variable Costs

Fixed Costs are the same for each quarter. Add these to the Total Variable Costs calculated above.

On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and has a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 25,000 and 84,000 units, respectively, were produced.
1. Compute depreciation expense, accumulated depreciation and the book value of the drill press at December 31, 2018 and 2019, assuming the straight-line method is used.
2. Compute depreciation expense, accumulated depreciation and the book value of the drill press at December 31, 2018 and 2019, assuming the double-declining-balance method is used.
3. Compute depreciation expense, accumulated depreciation and the book value of the drill press at December 31, 2018 and 2019, assuming the units-of-production method is used.

Answers

Answer:

$2,000

Explanation:

1. straight-line method

depreciation expense = $3,000 and $3,000

accumulated depreciation = $6,000

book value $30,000

2. double-declining-balance method

depreciation expense $7,200 and $5,760

accumulated depreciation = $12,960

book value = $23,040

3. units-of-production method is used.

depreciation expense $1,500 and $5,040

accumulated depreciation = $6,540

book value = $29,460

Are you smart first to reply gets braaaaaiiiiiiiinnnliest​

Answers

honestly i don’t even know what i’m doing here

Answer:

Hello

Explanation:

This is a homie checkpoint and i would just like to ask if you are ok? And if you do not answer that is fine. But just know there is always someone here for you.

;)

Match each term with its definition.

a. accelerated depreciation method
b. amortization
c. book value
d. boot
e. capital expenditures
f. capital leases
g. copyright
h. declining-balance method
i. depletion
j. depreciation
k. fixed assets
l. goodwill


1. Long-term or relatively permanent tangible assets that are used in the normal business operations.
2. The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.
3. The estimated value of a fixed asset at the end of its useful life.
4. A method of depreciation that provides tor equal peri0dic depreciation expense over the estimated life of a fixed asset.
5. A method of depreciation that provides tor depreciation expense based on the expected productive capacity Of a fixed asset.
6. A method of depreciation that provides periodic depreciation expense based on the declining
book value of a fixed asset over its estimated life.
7. The cost of a fixed asset minus accumulated depreciation on the asset.
8. A depreciation method that provides for a higher depreciation amount in the first year of the assets use, t0110wed by a gradually declining amount of depreciation.
9. The costs of acquiring fixed assets, adding to a fixed asset, improving a fixed asset, or extending a fixed assets useful lite.
10. Costs that benefit only the current period or costs incurred for normal maintenance and repairs

Answers

Answer:

Definition       Item

1.                fixed assets

2.               depreciation

3.               amortization

4.               copyright

5.               depletion

6.               declining-balance method

7.                book value

8.               accelerated depreciation method

9.               capital expenditures

10.              boot

Explanation:

The Definition has been matched to the items as above.

On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $175,600. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $22,000. On March 1, 2021, the truck was sold for $72,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to update depreciation in 2021. 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $97,000, prepare the journal entry to record the sale.

Answers

Answer:

Part 1

Debit : Depreciation Expense $11,200

Credit : Accumulated Depreciation $11,200

Part 2

Debit : Cash $72,000

Debit : Accumulated Depreciation $88,000

Debit : P & L $15,600

Credit : Cost $175,600

Part 3

Debit : Cash $97,000

Debit : Accumulated Depreciation $88,000

Credit : P & L $9,400

Credit : Cost $175,600

Explanation:

Depreciation = (Cost - Residual Value) / Useful Life

Annual Depreciation = $19,200

to update depreciation in 2021 = $11,200

Accumulated Depreciation = $88,000

his year, State A raised revenues by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, the volume of taxable sales declined from $800 million to $710 million. In contrast, State Z raised revenues from its 5 percent sales tax by expanding the tax base to include certain retail services. The volume of services subject to tax was $50 million. Required: Compute the additional revenue raised by State A. Compute the additional revenue raised by State Z.

Answers

Answer and Explanation:

The computation is shown below

a.

For Additional revenue raised by State A:

Following calculations need to be done

Initial revenue = 5% × 800 million

= $40 million

Revenue from increased tax rate is

= 6% × $710 million

= $42.6 million

Now Additional Revenue raised by State A is

= $42.6 million - $40million

= $2,600,000

For Additional revenue raised by State Z :

Revenue from increased tax base is

= 5% × $50 million

= $2,500,000

On August 8, 2020, Sam, single, age 62, sold for $210,000 his principal residence, which he has lived in for 10 years, and which had an adjusted basis of $60,000. On November 1, 2020, he purchased a new residence for $80,000. For 2020, Sam should recognize a gain on the sale of his residence of: a.$130,000 b.$25,000 c.$50,000 d.$0 e.None of these choices are correct.

Answers

Answer: d. $0

Explanation:

IRS rules state that if a person sells their principal residence in which they have lived for at least 2 of the last 5 years, they are not to be taxed on up to $250,000 of profit.

Sam had lived in the sold house for 10 years and this was his principal residence so it qualifies for the above provision.

Gain = Selling price - Basis

= 210,000 - 60,000

= $150,000.

This gain is less than the $250,000 allowed so Sam would recognize a gain of $0.

The Change Corporation has two different bonds currently outstanding. Bond M has a face value of $30,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $3,100 every six months over the subsequent eight years, and finally pays $3,400 every six months over the last six years. Bond N also has a face value of $30,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 12% compounded semi-annually. What is the current price of Bond M and Bond N?

Answers

Answer:

a. Current price of Bond M = $24,062.31

b. Current price of Bond N = $2,916.67

Explanation:

a. Calculation of current price of Bond M

Note: See the attached excel file for the calculation of current price of Bond M (in bold red color).

In the attached excel file, the following are used:

r = required return = 12%

s = number of semiannuals in a year = 2

From the attached excel file, we have:

Current price of Bond M = $24,062.31

b. Calculation of current price of Bond N

This can be calculated using the following formula:

Current price of Bond N = Face value of bond N / (100% + Semiannual required return)^n ............................ (1)

Where;

Face value of bond N = $30,000

Semiannual required return = Required return / Number of semiannual in a year = 12% / 2 = 6%

n = Number of semiannuals = Number of years of maturity * Number of semiannual in a year = 20 * 2 = 40

Substituting the above into equation (1), we have:

Current price of Bond N = $30,000 / (100% + 6%)^40 = $2,916.67

Fultz Company has accumulated the following budget data for the year 2020.
1. Sales: 31,230 units, unit selling price $89.
2. Cost of one unit of finished goods: direct materials 1 pound at $6 per pound, direct labor 3 hours at $13 per hour, and manufacturing overhead $7 per direct labor hour.
3. Inventories (raw materials only): beginning, 10,170 pounds; ending, 15,490 pounds.
4. Selling and administrative expenses: $170,000; interest expense: $30,000.
5. Income taxes: 30% of income before income taxes.
Prepare a budgeted multiple-step income statement for 2020.

Answers

Answer:

Fultz Company

Budgeted multiple-step income statement for 2020.

Sales ( 31,230 units x $89)                                      $2,779,470

Less Cost of Sales                                                    ($138,320)

Gross Profit

Less Expenses :

Operating Expenses

Selling and administrative expenses:                      $170,000

Operating Profit

Non - Operating Expenses

Interest                                                                      ($30,000)

Income before income taxes.

Income tax expense at 30%

Net Income

Explanation:

Cost of Goods Manufactured Calculation :

Materials = 5,320  x 6           = $31,920

Direct Labor =  5,320 x $13 = $69,160

Manufacturing Overhead     = $37,290

Total                                        $138,320

Analyzing and Interpreting Restructuring Costs and Effects
General Electric (GE) reports the following footnote disclosure (excerpted) in its 2018 10-K relating to its restructuring program. Restructuring actions are an essential component of our cost improvement efforts to both existing operations and those recently acquired. Restructuring and other charges relate primarily to workforce reductions, facility exit costs associated with the consolidation of sales, service and manufacturing facilities, the integration of recent acquisitions, and other asset writedowns. We continue to closely monitor the economic environment and may undertake further restructuring actions to more closely align our cost structure with earnings and cost reduction goals. 2018 2017 2016 $0.9 $1.2 $1.3 1.8 1.9 1.3 Workforce reductions Plant closures & associated costs and other asset write-downs Acquisition/disposition net charges Other 0.8 0.8 0.6 0.1 0.2 0.3 Total $3.6 $4.1 $3.5 For 2018, restructuring and other charges were $3.5 billion of which approximately $1.4 billion was reported in cost of products/services and $2.1 billion was reported in selling, general and administrative expenses (SG&A). These activities were primarily at Power, Corporate and Oil & Gas. Cash expenditures for restructuring and other charges were approximately $2.0 billion for the twelve months ended December 31, 2018. (a) Which of the following in NOT an example of a common non-cash charge associated with corporate restructuring activities? Olnventory revaluations Severance paid to employees O Fixed-asset write-downs Olmpairment charges on intangible assets (b) Using the financial statement effects template, show the effects on financial statements of the (1) 2018 restructuring charge of $3.6 billion, and (2) 2018 cash payment of $2.0 billion. Use negative signs with answers, when appropriate. Enter answers in billions. Balance Sheet (in $ billions) Income Statement Noncash Contributed Earned Transaction Cash Asset + Assets Liabilities Capital Capital Revenue Expenses = Net Income (1) (2) + + (c) Assume that instead of accurately estimating the anticipated restructuring charge in 2018, the company overestimated them by $30 million. (1) How would this overestimation affect financial statements in 2018? OOverstates the expense and understates pretax income by $30 million. The restructuring liability on the 2018 balance sheet will be overstated by $30 million. OUnderstates the expense and overstates pretax income by $30 million. The restructuring liability on the 2018 balance sheet will be overstated by $30 million. OOverstates the expense and understates pretax income by $30 million. The restructuring liability on the 2018 balance sheet will be understated by $30 million. OUnderstates the expense and understates pretax income by $30 million. The restructuring liability on the 2018 balance sheet will be overstated by $30 million. (2) How would this overestimation affect financial statements in 2019 when severance costs are paid in cash? OThe cash paid out in 2019 will be more than the 2018 accrual. Any excess (the $30 million) would increase expense (decrease profit) in 2019. OThe overestimation from 2018 will have no effect on the 2019 balance sheet or income statement. OThe cash paid out in 2019 will be less than the 2015 accrual. Any excess (the $30 million) would increase expense (decrease profit) in 2019. OThe cash paid out in 2019 will be less than the 2018 accrual. Any excess (the $30 million) would reduce expense (increase profit) in 2019.

Answers

too much for my brainn sorryyy

For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income 285,000 Temporary difference-depreciation (20,000) Taxable income $ 265,000 Tringali's tax rate is 40%. Assume that no estimated taxes have been paid. What should Tringali report as income tax payable for its first year of operations

Answers

Answer:

$106,000

Explanation:

Calculation to determine What should Tringali report as income tax payable for its first year of operations

Using this formula

Income tax payable=Taxable income*Tringali's tax rate

Let plug in the formula

Income tax payable=265,000 x 40%

Income tax payable= $106,000

Therefore the amount that Tringali should report as income tax payable for its first year of operations is $106,000

You overhear your coworker say that only the balance sheet and income statement are needed to evaluate a firm's financial health. Do you agree with this assessment? Why, or why no​

Answers

Answer:

I do not agree.

Explanation:

The financial health of a company involves more elements than the balance sheet and the statement of results.

For the success or failure of a company to be truly evaluated, it is necessary that in addition to the factors shown above, it is necessary to analyze: the company's profitability in relation to its fixed and variable costs, the level of indebtedness, the balance point between demand and supply and gross and net profit.

For centuries, Alaskans relied on salmon and other freshwater fish for protein, oil, and other nutrients. But when jetliners began flying tourists who love fishing from Seattle to Anchorage in the 1950s, the stock of Alaskan salmon began falling. The Alaska Department of Fish and Game had concerns about the high fraction of young salmon caught before they could reproduce. Following the advice of environmental scientists and economists, the Alaska Department of Fish and Game introduced restrictions on the minimum size (28 inches) and the number of salmon caught (5 per day). Among their concerns was the high fraction of young salmon caught before they could reproduce.
a. Alaskan salmon are a ____________.
b. In addition to restricting the number of salmon caught and imposing minimum size limits, which of following are suitable policy interventions to deal with this market failure?
The government could :________.
i. allow only Alaska residents to purchase fishing permits.
ii. increase the cost of fishing permits for sport fishers.
iii. decrease the number of fish allowed for commercial fishers.
iv. limit the fishing season to only certain times of the year, i.e., prohibit fishing during spawning.

Answers

Answer:

a. Rivalrous and Non-excludable good.

When a good is said to be rivalrous, it means that consuming them reduces the supply left for others. When salmon, especially the younger ones, are fished, it will reduce the supply of salmon remaining which makes salmon a rivalrous good.

Salmon is also a non-excludable good which means that everyone has access to it which is why people could fly in from Seattle and still be able to fish salmon in Alaska.

b. The government could do all of the options listed in b.

Allowing only Alaska residents to fish would keep salmon stock healthy as Alaskan residents have managed to do so for centuries.

People who fish just for sport should be made to pay more for fishing permits to discourage them from reducing salmon stock for sport.

Commercial fishers should be limited in the number they can fish.

The fishing season should not be all year round but rather only in certain periods, especially after the salmon has had time to repopulate.

The following information pertains to Newman Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.

Assets Cash and short-term investments $40,000
Accounts receivable (net) 30,000
Inventory 25,000
Property, plant and equipment 215,000
Total Assets $310,000
Liabilities and Stockholders' Equity Current liabilities $60,000
Long-term liabilities 95,000
Common stock 80,000
Retained earnings 75,000
Total liabilities and stockholders' equity $310,000
Income Statement Sales $90,000
Cost of goods sold 45,000
Gross margin $45,000
Operating expenses 20,000
Net income $25,000
Number of shares of common stock 6,000
Market price of common stock $40
Dividends per share $1.00
Cash provided by operations $40,000

What is the rate earned on total assets for this company?

a. 8.1%
b. 6.8%
c. 10.5%
d. 16.1%

Answers

Answer:

a. 8.1%

Explanation:

Calculation to determine the rate earned on total assets for this company

Using this formula

Rate earned on total assets=Net income /Total Assets

Let plug in the formula

Rate earned on total assets=$25,000/$310,000

Rate earned on total assets=0.0806*100

Rate earned on total assets=8.06%

Rate earned on total assets=8.1% (Approximately)

Therefore the rate earned on total assets for this company will be 8.1%

Monrovia Bike Corporation manufactures one model of bicycles: the Gully Runner. Monrovia has decided to utilize an activity-based costing system for the current year and calculated the following estimates: Activity Estimated Overhead Cost Estimated Activity Automated Assembly...... $189,000 7,000 machine hours Parts management.......... $63,000 100 part numbers Calulate the Activity Rate for the Parts Management activity that should be used during the year.

Answers

Answer:

Parts management= $630 per part

Explanation:

Giving the following information:

Activity Estimated Overhead Cost Estimated Activity Automated Assembly $189,000 7,000 machine hours

Parts management $63,000 100 part numbers

To calculate the activity rate, we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Parts management = 63,000 / 100

Parts management= $630 per part

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