Business
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.4 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end.Required:a. Prepare the journal entries on October 1, 2021, to record the issuance of the note.b. Record the adjustments on December 31, 2021.c. Prepare the journal entries on September 30, 2021, to record payment of the notes payable at maturity.
Chrzan, Inc., manufactures and sells two products: Product E0 and Product N0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product E0 340 9.4 3,196 Product N0 1,200 8.4 10,080 Total direct labor-hours 13,276 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product E0 Product N0 Total Labor-related DLHs $ 298,390 3,196 10,080 13,276 Production orders orders 57,587 500 600 1,100 Order size MHs 581,866 5,200 4,900 10,100 $ 937,843 The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
X Company must purchase a new delivery truck and is using the payback method to evaluate two possible trucks. Truck 1 costs $31,000; Truck 2 costs $44,000. The useful life of both is seven years, with the following estimated operating cash flows:Year Truck 1 Truck2 1 6000 70002 8,000 4,000 3 8,000 3,000 4 8,000 3,000 5 6,000 3,000 6 5,000 2,000 7 4,000 2,000 If X Company chooses Truck 2 instead of Truck 1, what is the payback period (in years)? A: 2 B: 3 C: 4 D: 5 E: 6 F: 7
The financial information below presents selected information from the financial statements of Pelican Company. Sales revenue during the current year was $13,340,300 and cost of goods sold was $8,914,195. All of Pelican's sales are made on account and are due within 30 days. Prior Year Current Year Cash and cash equivalents $ 570,330 $ 635,780 Accounts receivable 4,730,000 3,818,000 Inventory 938,360 1,277,440 Total current assets 8,250,030 8,210,100 Total assets 11,118,020 10,998,000 Total current liabilities 7,830,300 6,306,000 Total liabilities 8,467,900 8,276,700 Required: Current ratios as of the end of the current and prior year. Calculate the receivables turnover ratio for the current year. Calculate the days to collect for the current year. Calculate the inventory turnover ratio for the current year. Calculate the days to sell for the current year.Required ARequired BRequired CRequired DRequired ECurrent ratios as of the end of the current and prior year. (Round your answers to 2 decimal places.)Current YearPrior YearCurrent RatioRequired ARequired BRequired CRequired DRequired ECalculate the receivables turnover ratio for the current year. (Round your answer to 2 decimal places.)Receivables Turnover RatioComplete this question by entering your answers in the tabs below.Required ARequired BRequired CRequired DRequired ECalculate the days to collect for the current year. (Round your intermediate calculations. Round your final answer to 2 decimal places.)Days to CollectRequired ARequired BRequired CRequired DRequired ECalculate the inventory turnover ratio for the current year. (Round your answer to 2 decimal places.)Inventory Turnover RatioRequired ARequired BRequired CRequired DRequired ECalculate the days to sell for the current year. (Round your intermediate calculations. Round your final answer to 2 decimal places.)Days to Sell