Answer:
Journal Entries:
1. Debit Supplies Expense $1,250
Credit Supplies $1,250
To record supplies expense for the month.
2. Debit Prepaid Insurance $440
Credit Cash $440
To record insurance prepaid.
Debit Insurance Expense $37
Credit Prepaid Insurance $37
To record insurance expense for the month.
3. Debit Wages Expense $3,400
Credit Cash Cash $3,400
To record wages paid.
4. Debit Sales Commissions Expense $620
Credit Sales Commission Payable $620
To record the sales commission expense.
5. Debit Interest Expense $130
Credit Interest Payable $130
To record the interest expense.
6. Debit Cash $2,675
Credit Accounts Receivable $2,675
To record the receipt on account.
7. Debit Inventory $700
Credit Accounts Payable $700
To record the purchase of inventory on account.
8. Debit Interest Payable $130
Credit Cash $130
To record the payment of interest.
9. Debit Wages Expense $870
Credit Wages Payable $870
To record accrued wages expense.
10. Debit Accounts Payable $590
Credit Cash $590
To record payment on account.
Explanation:
a) Data and Analysis:
1. Supplies Expense $1,250 Supplies $1,250
2. Prepaid Insurance $440 Cash $440
Insurance Expense $37 ($440/12)
Prepaid Insurance $37
3. Wages Expense $3,400 Cash $3,400
4. Sales Commissions Expense $620 Sales Commission Payable $620
5. Interest Expense $130 Interest Payable $130
6. Cash $2,675 Accounts Receivable $2,675
7. Inventory $700 Accounts Payable $700
8. Interest Payable $130 Cash $130
9. Wages Expense $870 Wages Payable $870
10. Accounts Payable $590 Cash $590
1-year Treasury bill yield is 3.5%. 10-year Treasury bond yield is 4.5%. Expected rate of inflation embedded in both the Treasury bill and bond is 2.0%. Average yield on AAA-rated 10-year corporate bonds is 5.75%. Average yield on BB-rated 10-year corporate bonds is 8%. Liquidity premium on both Treasury bill and bond is zero. Liquidity premium on both AAA-rated and BB-rated bonds are 0.5%. What is the maturity risk premium embedded in the 10-year Treasury bond
Answer: 2.5%
Explanation:
Treasury bonds have no default risk as they are backed by the U.S. government. The premiums that make up the yield are the inflation, liquidity and maturity risk premiums.
Required yield on Treasury bond = Inflation premium + Liquidity premium + Maturity risk premium
4.5% = 2% + 0% + Maturity risk premium
MRP = 4.5% - 2% - 0%
= 2.5%
How can the business sector contribute more positively to the economy
Answer:
Small businesses contribute to local economies by bringing growth and innovation to the community in which the business is established. Small businesses also help stimulate economic growth by providing employment opportunities to people who may not be employable by larger corporations.
Explanation:
Hope it helps! Correct me if I am wrong :>
Im sure about my answer :>
If you dont mind can you please mark me as brainlest?
Of the following, the most important cause of the Great Depression was soaring energy costs soaring energy costs:________
A. serious dislocation in international trade serious dislocation in international trade
B. European abandonment of the gold standard European abandonment of the gold standard
C. confiscatory social security taxes confiscatory social security taxes
D. excessive government spending
Answer:
The correct answer is the option A: Serious dislocation in international trade.
Explanation:
To begin with, the Great Depression is the famous name that receives the financial crisis that started in the United States with the breakdown of the New York's stock exchange market and that quickly spread throught out the whole world ended up shooking the entire global economy for about a complete decade.
The major causes of it where a couple of various things and situation that finally tended to the explosion of the stock market. The context was that the United States after winning the First War became the most powerful nation in the world and with that also the country with more gold reserves so it obligate the european nations to pay the debts of the war as well as difficult them to trade in the international market by elevating the taxes to their imports and pushing its own exports to every other country. So thats basically how the whole international trade suffered from a dislocation.
The most important cause of the Great Depression was A. serious dislocation in international trade.
What was the Great Depression?The Great Depression was the global economic meltdown that was experienced by many nations following the end of the first world war.
After the defeat of Germany, many reparation sanctions were imposed on it for civilian damages caused by aggressive Germany.
Many nations who participated in the war also experienced economic stagnation and uncertainty with war debts suffocating economic activities.
Thus, the most important cause of the Great Depression was Option A.
Learn more about the Great Depression at https://brainly.com/question/441267
3. Consider the following price indexes: 2 pts
2018 Consumer Price index: 251.107 2019 Consumer price Index: 255.651
1. Which year is likely the base year?
2. What is the inflation rate from 2018 to 2019?
Answer:
1. Which year is likely the base year?
The base year is likely to be 2018, because it has the lower consumer price index. This is because most economies show inflation (the gradual increase of the prices overtime within an economy) rather than deflation (the gradual decrease)
2. What is the inflation rate from 2018 to 2019?
Using the consumer price index (CPI) the inflation rate formula is:
Inflation rate = CPI year 2 - CPI year 1 / CPI year 1
in this case, the year 1 is our likely base year, 2018, and year 2 is 2019.
Now, we simply plug the amounts into the formula:
Inflation rate = 255.651 - 251.107 / 251.107 = 0.018 or 1.8%
So the inflation rate from 2018 to 2019 is 1.8%, a rather low number.
A company must repay the bank a single payment of $20,000 cash in 3 years for a loan it entered into. The loan is at 8% interest compounded annually. The present value of 1 (single sum) at 8% for 3 years is 0.7938. The present value of an annuity (series of payments) at 8% for 3 years is 2.5771. The present value of the loan (rounded) is: Multiple Choice $15,876. $20,000. $25,195. $7,761. $51,542.
Answer:
Present Value of the loan = $19999.36 rounded off to $20000
Explanation:
The present value of loan will comprise of the present value of the principal amount of loan plus the present value of the interest that the loan will charge for the 3 year time period for which it is outstanding. As the interest payments are fixed and occur after equal intervals of time, they are considered an annuity.
To calculate the present value of the loan, we must discount the interest payments using the present value factor of annuity given in the question as 2.5771 and we must discount the principal to present value using the present value factor given in question as 0.7938.
We will first calculate the annual interest payment on loan.
Annual Interest payment = 20000 * 0.08 = 1600
Present value of the Interest payment - annuity = 1600 * 2.5771
Present value of the Interest payment - annuity = $4123.36
Present value of the Principal loan = 20000 * 0.7938
Present value of the Principal loan = $15876
Present Value of the loan = 15876 + 4123.36
Present Value of the loan = $19999.36 rounded off to $20000
Sound Software estimates that it will sell LaTeX: NN units of a program after spending LaTeX: aa thousands of dollars on advertising, where LaTeX: N\left(a\right)=-a^2+300a+6N ( a ) = − a 2 + 300 a + 6 when LaTeX: 0\le a\le3000 ≤ a ≤ 300. What is the maximum number of units that can be sold and how much need to be spent on advertising in order to achieve this sales goal?
Answer:
Explanation:
From the given information:
N(a) = -a² +300a + 6
Taking the differential of the above equation with respect to "a"
Then;
N'(a) = - 2a + 300
where;
the Critical points N'(a) = 0
-2a + 300 = 0
-2a = -300
a = -300/-2
a = 150
Now;
N(0) = -(0)² +300(0) + 6
N(150) = (-150)² +300(150) + 6 =22506
N(300) = (-300)² +300(300) + 6 = 6
∴
The max. number of the possible unit that can be sold = 22506
The amount spent on advertising to get to this goal = 150 thousand dollars
what is hospitableness in your own understandings?
Answer: Hospitableness is being able to make someone feel welcomed in your home,Such as asking them if they need a drink,or food etc. Basically anything to make the person feel comfortable.
Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 52,000 Total fixed manufacturing overhead cost$291,200 Variable manufacturing overhead per direct labor-hour$5.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 20 Total direct labor-hours 100 Direct materials$780 Direct labor cost$5,200 The unit product cost for Job P951 is closest to
Answer:
Unitary cost= $352
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (291,200 / 52,000) + 5
Predetermined manufacturing overhead rate= $10.6 per direct labor hour
Now, we can calculate the total cost of Job P951:
Total cost= 780 + 5,200 + 10.6*100
Total cost= $7,040
Finally, the unitary cost:
Unitary cost= 7,040 / 20
Unitary cost= $352
Calculating the geometric and arithmetic average rate of return) Marsh Inc. had the following end-of-year stock prices over the last five years and paid no cash dividends: Time Marsh 1 $ 2 3 4 5 (Click on the icon in order to copy its contents into a spreadsheet.) a. Calculate the annual rate of return for each year from the above information. b. What is the arithmetic average rate of return earned by investing in Marsh's stock over this period? c. What is the geometric average rate of return earned by investing in Marsh's stock over this period? d. Considering the beginning and ending stock prices for the five-year period are the same, which type of average rate of return (the arithmetic or geometric) better describes the average annual rate of return earned over the period?
Complete Question:
Marsh Inc. had the following end-of-year stock prices over the last five years and paid no cash dividends:
Time Marsh
1 $99
2 141
3 121
4 88
5 99
a. Calculate the annual rate of return for each year from the above information.
b. What is the arithmetic average rate of return earned by investing in Marsh's stock over this period?
c. What is the geometric average rate of return earned by investing in Marsh's stock over this period?
d. Considering the beginning and ending stock prices for the five-year period are the same, which type of average rate of return (the arithmetic or geometric) better describes the average annual rate of return earned over theperiod?
Answer:
Marsh Inc.
a. annual rate of return for each year
Year
2 42. 4%
3 -14.2%
4 -27.3
5 12.5
b. The arithmetic average rate of return earned by investing in Marsh's stock over this period is:
= 3.35%
c. The geometric average rate of return earned by investing in Marsh's stock over this period is:
= -0.7502%
d. Considering the beginning and ending stock prices for the five-year period are the same, the geometric type of average rate of return better describes the average annual rate of return earned over the period.
Explanation:
a) Data and Calculations:
Time Marsh ARR
1 $99
2 141 42. 4% ($42/$99 * 100)
3 121 -14.2% (-$20/$141 * 100)
4 88 -27.3 (-$33/$121 * 100)
5 99 12.5 ($11/$88 * 100)
Sum of ARR = 13.4%
Arithmetic mean = 3.35% (13.4%/4)
Geometric mean = {(1 + 0.424 * 1 - 0.142 * 1 - 0.273 * 1 + 0.125)∧1/4} - 1
= {(1.424 * 0.858 * 0.727 * 1.125)∧1/4} - 1
= {(0.99927)∧1/4} - 1
= 0.2498 - 1
= -0.7502
< 0
explain the various functions of an entrepreneur
Assume the equity method Equity Investment account relating to a subsidiary has a reported balance of $9,036,000, including $864,000 of Goodwill. The fair value of the subsidiary is $8,100,000. The fair value of the subsidiary's individually identifiable net assets is $7,740,000. The subsidiary has only one reporting unit, which is the same as the overall entity.1. For this fact set, determine whether Goodwill is impaired.2. Prepare the required journal entry if you determine Goodwill is impaired.
Answer:
The impairment amount will be "$504,000". A further explanation is below.
Explanation:
The given values are:
Goodwill,
= $864,000
Subsidiary fair value,
= $8,100,000
Subsidiary's individually identifiable net assets,
= $7,740,000
Now,
(1)
The impairment amount will be:
= [tex]Goodwill-(Subsidiary \ fair \ value-Identifiable \ net \ assets)[/tex]
On substituting the values, we get
= [tex]864,000 - (8,100,000- 7,740,000)[/tex]
= [tex]864,000-360,000[/tex]
= [tex]504,000[/tex] ($)
(2)
The journal entry is:
Description Debit Credit
Equity income $504,000
Equity investment $504,000
Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: Provided $82,000 of services on account. Collected $49,200 cash from accounts receivable. Paid $30,000 of salaries expense for the year. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $ 24,272 .01 0-30 1,640 .05 31-60 2,296 .10 61-90 1,968 .30 Over 90 days 2,624 .50 Required a. Record the above transactions in general journal form and post to T-accounts. b. Prepare the income statement for Vulcan Service Co. for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1
Answer:
Vulcan Service Co.
a. Journal Entries:
Debit Accounts Receivable $82,000
Credit Service Revenue $82,000
To record services rendered on account.
Debit Cash $49,200
Credit Accounts Receivable $49,200
To record cash collected on account.
Debit Salaries Expense $30,000
Credit Cash $30,000
To record salaries expense for the year.
2. Debit Bad Debts Expense $2,456.72
Credit Allowance for Uncollectible $2,456.72
To record bad debts expense.
b. Income Statement for year ended December 31, Year 1:
Service Revenue $82,000
Salaries Expense 30,000
Bad Debts expense 2,456.72 32,456.72
Net income $49,543.28
c. The net realizable value of the accounts receivable at December 31, Year 1 is:
Accounts Receivable = $32,800
less Allowance for
uncollectibles 2,456.72
Net realizable value = $30,343.28
Explanation:
a) Data and Calculations:
Accounts Receivable
Account Titles Debit Credit
Service Revenue $82,000
Cash $49,200
Balance 32,800
Service Revenue
Account Titles Debit Credit
Accounts receivable $82,000
Salaries Expense
Account Titles Debit Credit
Cash $30,000
Bad Debts Expense
Account Titles Debit Credit
Allowance for Collectibles $2,456.72
Allowance for Uncollectibles
Account Titles Debit Credit
Bad Debts expense $2,456.72
Cash Account
Account Titles Debit Credit
Accounts receivable $49,200
Salaries expense $30,000
Balance 19,200
Trial Balance as at Year 1:
Account Titles Debit Credit
Cash $19,200
Accounts Receivable 32,800
Allowance for Uncollectibles $2,456.72
Service Revenue 82,000
Salaries Expense 30,000
Bad Debts expense 2,456.72
Totals $84,456.72 $84,456.72
Accounts receivable aging schedule:
Number of Percent Likely to
Days Past Due Amount Be Uncollectible Allowance Balance
Current $ 24,272 .01 $242.72
0-30 1,640 .05 82.00
31-60 2,296 .10 229.60
61-90 1,968 .30 590.40
Over 90 days 2,624 .50 1,312.00
Total $32,800 $2,456.72
A large financial institution is losing market share to savvy upstart companies, and it has asked its top marketing executive to identify the main reasons for their sliding performance. Using textbook concepts, describe three barriers that might cause the marketing executive to poorly identify the problem(s), and include an illustrative example for each barrier.
Answer:
Problems that could be discussed are
1)Stakeholder framing:
2)Perceptual defense
3)Decisive leadership:
4) mental model
Explanation:
what is commercial bank? in your own words.
1. Cash balance per bank, July 31, $7,308.
2. July bank service charge not recorded by the depositor $42.
3. Cash balance per books, July 31, $7,392.
4. Deposits in transit, July 31, $2,982.
5. $1,680 collected for Cullumber Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Cullumber Company.
6. Outstanding checks, July 31, $1,260.
(a) Prepare a bank reconciliation at July 31, 2010
(b) Journalize the adjusting entries at July 31 on the books
Answer:
Part a
Bank reconciliation at July 31, 2010
Balance as per Bank Statement $ 7,308
Add Outstanding Lodgments $2,982
Less Unpresented Checks ($1,260)
Balance as per Cash Book $9,030
Part b
Adjusting entries at July 31 on the books
Item 2
Debt : Bank service charge $42
Credit : Cash $42
To record the Bank service charge
Item 5
Debt : Cash $1,680
Credit : EFT Payment - Account Receivable $1,680
To record the amount collected on behalf of Cullumber Company
Explanation:
The Bank Reconciliation Statement is used to determine the true Cash Balance at the end of the month.
Updated Cash Book
Debit :
Balance $7,392
Credit Transfer $1,680
Total $9,072
Credit
Bank service charge $42
Balance (Balancing amount) $9,030
Total $9,072
The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered 5 Years employed as of January 1 4 (each) Attribution period 20 years EPBO, January 1 $ 60,000 EPBO, December 31 $ 63,600 Interest rate 6 % Funding and plan assets None What is the correct entry to record postretirement benefit expense for the current year
Answer:
Date Account Title Debit Credit
December 31 Postretirement benefit expense $3,900
APBO $3,900
Explanation:
Service cost = Ending EPBO / Attribution period
= 63,600 / 20
= $3,180
Interest cost = Beginning EPBO * Years employed / Attribution period * Interest rate
= 60,000 * 4/20 * 6%
= $720
Postretirement benefit expense = 3,180 + 720
= $3,900
Credit to Accumulated Postretirement Benefit Obligation (APBO).
Liz and Bob just had a baby named Isabelle, and they want to save enough money for Isabelle to go to college. Assume that they start making monthly payments when Isabelle is 5 into an ordinary annuity earning 3.79%, and they calculate that they will need $21,200.00 by the time Isabelle turns 18. How much should they deposit every month so that they reach their goal
Answer:
They should deposit $105 every month so that they reach their goal.
Explanation:
Given - Liz and Bob just had a baby named Isabelle, and they want to
save enough money for Isabelle to go to college. Assume that
they start making monthly payments when Isabelle is 5 into an
ordinary annuity earning 3.79%, and they calculate that they will
need $21,200.00 by the time Isabelle turns 18.
To find - How much should they deposit every month so that they reach
their goal.
Proof -
We know the formula -
Future value = [tex]PMT\frac{(1 + i)^{n} - 1 }{i}[/tex]
Here , we have
i = [tex]\frac{\frac{3.79}{100} }{12} = \frac{{0.0379} }{12}[/tex]
n = 12×(18 - 5) = 156
Future value = 21,200.00
∴ we get
21,200.00 = [tex]PMT\frac{(1 + \frac{0.0379}{12} )^{156} - 1 }{\frac{0.0379}{12} }[/tex]
⇒21,200 = [tex]PMT\frac{(1 + 0.00315834 )^{156} - 1 }{0.00315834 }[/tex]
⇒21,200 = [tex]PMT\frac{(1.00315834 )^{156} - 1 }{0.00315834 }[/tex]
⇒21,200 = [tex]PMT\frac{1.635460826 - 1 }{0.00315834 }[/tex]
⇒21,200 = [tex]PMT\frac{0.635460826}{0.00315834 }[/tex]
⇒21,200 = PMT(201.2008924)
⇒PMT = [tex]\frac{21,200}{201.2008924}[/tex]
⇒PMT = 105.3673259 ≈ $105
∴ we get
They should deposit $105 every month so that they reach their goal.
What is the role of the Federal Trade Commission?
Explanation:
The fredeal trade commission protests consumers by stopping unfair, deceptive and fraudulent practices in the marketplace. We conduct investigation, sue companies, develop rules to ensure a vibrant marketplace, and educated consumers and businesses about their rights and responsibilities.A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory 0 Units produced 5,000 Units sold 4,900 Units in ending inventory 100 Variable costs per unit: Direct materials$61 Direct labor$63 Variable manufacturing overhead$26 Variable selling and administrative expense$24 Fixed costs: Fixed manufacturing overhead$105,000 Fixed selling and administrative expense$49,000 What is the variable costing unit product cost for the month
Answer:
$217,600
Explanation:
Calculation for the variable costing unit product cost for the month
Variable selling and administrative expense $117,600
($24 per unit x 4,900 units sold)
Fixed manufacturing overhead $105,000
Fixed selling and administrative expense$49,000
Variable costing total period $217,600
($117,600+$105,000+$49,000)
Therefore the variable costing unit product cost for the month is $217,600
If in the textile markets we know that two brands, X and Z, are substitutes. Suppose that the supply of X increases and, at the same time, the supply of the Z decreases. Other things being equal, what would be the expectations for the change in the equilibrium quantities in the two markets
Answer:
Equilibrium quantity of X increases and that of z decreases.
Explanation:
If two goods are substitutes then 1 can be used in the place of the other. As supply of Z falls, we would have market demand to be greater than supply. This brings about a price rise. The price rise will make consumers of Z to want it less and opt for a cheaper good X. Increase in the demand for X causes its supply to rise in the market.
So we would have increase in equilibrium quantity of X and that of Z would fall.
What is the relationship between households and the financial market?
Answer:
In other words, the household sector diverts a portion of income to the financial markets which is then used by the business and government sectors to finance their spending. Household Saving: The household sector both buys and sells legal claims through the financial markets.
Explanation:
alton Corporation is currently selling 104 units of its product. The company is deciding the price that it should charge for a bulk order of 40 units. The variable cost per unit is $200. This order will not involve any additional fixed costs and the company's current sales will not be affected. The company targets a profit of $4,000 on the bulk order. What selling price per unit should the company quote for the bulk order
Answer:
the selling price per unit is $300
Explanation:
The computation of the selling price per unit is shown below;
= Variable cost + profit needed per unit
= $200 + ($4,000 ÷ $40 units)
= $200 + $100
= $300
hence, the selling price per unit is $300
xercise 7-24 (Static) Assigning Costs to Jobs (LO 7-1, 2) Forest Components makes aircraft parts. The following transactions occurred in July. Purchased $119,000 of materials on account. Issued $117,600 in direct materials to the production department. Issued $8,400 of supplies from the materials inventory. Paid for the materials purchased in transaction (1) using cash. Returned $15,400 of the materials issued to production in (2) to the materials inventory. Direct labor employees earned $217,000, which was paid in cash. Purchased miscellaneous items for the manufacturing plant for $120,400 on account. Recognized depreciation on manufacturing plant of $245,000. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $3,000,000. Estimated overhead for the year was $2,790,000. The following balances appeared in the inventory accounts of Forest Components for July. Beginning Ending Materials Inventory ? $88,200 Work-in-Process Inventory ? 73,500 Finished Goods Inventory $18,200 49,700 Cost of Goods Sold ? 521,500 Required: a. Prepare journal entries to record these transactions. b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
Answer:
Forest Components
a. Journal Entries
1. Debit Raw materials $119,000
Credit Accounts payable $119,000
To record purchase of materials on account.
2. Debit Work in Process $117,600
Credit Raw materials $117,600
To record transfer of materials to production.
3. Debit Overhead $8,400
Credit Raw materials $8,400
To record indirect materials used.
4. Debit Accounts payable $119,000
Credit Cash $119,000
To record payment for materials.
5. Debit Raw materials $15,400
Credit Work in Process $15,400
To record the return of materials to warehouse.
6. Debit Work in Process $217,000
Credit Cash $217,000 (direct labor)
To record the payment for direct labor.
7. Debit Overhead $120,400
Credit Account payable $120,400
Purchase of miscellaneous items for manufacturing plant.
8. Debit Overhead $245,000
Credit Depreciation expense $245,000
To record depreciation expense for overhead
9. Debit Work in Process $201,810
Credit Overhead $201,810
To record overhead applied.
b. T-accounts:
Materials Inventory
Account Titles Debit Credit
Beginning balance $79,800
Accounts payable $119,000
Work in Process $117,600
Overhead 8,400
Work in Process 15,400
Ending Balance 88,200
214,200 214,200
Work in Process Inventory
Account Titles Debit Credit
Beginning balance $105,490
Raw materials 117,600
Raw materials $15,400
Direct labor (cash) 217,000
Overhead 201,810
Finished Goods 553,000
Ending Balance 73,500
$641,900 $641,900
Overhead
Account Titles Debit Credit
Raw materials $8,400
Accounts payable 120,400
Depreciation exp. 245,000
Work in Process $201,810
Finished Goods Inventory
Account Titles Debit Credit
Beginning balance $18,200
Work in Process 553,000
Cost of goods sold $521,500
Ending balance $49,700
Cost of Goods Sold
Account Titles Debit Credit
Finished Goods $521,500
Explanation:
a) Data and Analysis:
1. Raw materials $119,000 Accounts payable $119,000
2. Work in Process $117,600 Raw materials $117,600
3. Overhead $8,400 Raw materials $8,400
4. Accounts payable $119,000 Cash $119,000
5. Raw materials $15,400 Work in Process $15,400
6. Work in Process $217,000 Cash $217,000 (direct labor)
7. Overhead $120,400 Account payable $120,400
8. Overhead $245,000 Depreciation expense $245,000
9. Work in Process $201,810 Overhead $201,810 ($217,000 * $0.93)
Estimated direct labor costs = $3,000,000
Estimated overhead costs = $2,790,000
Predetermined overhead rate = $2,790,000/$3,000,000 = $0.93
Some recent financial statements for Smolira Golf Corp. follow.
SMOLIRA GOLF CORP.
2014 and 2015 Balance Sheets
Assets Liabilities and Owners’ Equity
2014 2015 2014 2015
Current assets Current liabilities
Cash $ 24,236 $26,000 Accounts payable $25,084 $29,000
Accounts receivable 14,348 17,100 Notes payable 19,000 12,700
Inventory 27,892 29,000 Other 13,471 18,300
Total $ 66,476 $72,100 Total $ 57,555 $60,000
Long-term debt $ 88,000 $99,000
Owners’ equity
Common stock and paid-in surplus $45,000 $45,000
Accumulated retained earnings 219,616 233,000
Fixed assets
Net plant and equipment $343,695 $364,900 Total $264,616 $278,000
Total assets 410,171 $437,00 Total liabilities and owners’ equity
$410,171 $437,000
SMOLIRA GOLF CORP.
2015 Income Statement
Sales $ 392,640
Cost of goods sold 257,000
Depreciation 48,800
Earnings before interest and taxes $86,840
Interest paid 16,200
Taxable income $70,640
Taxes (40%) 28,256
Net income $ 42,384
Dividends $ 29,000
Retained earnings 13,384
Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate): (Enter your profitability ratio answers as a percent rounded to 2 decimal places, e.g., 32.16. Round the remaining answers to 2 decimal places, e.g., 32.16.)
Short-term solvency ratios: 2014 2015
a. Current ratio times times
b. Quick ratio times times
c. Cash ratio times times
Asset utilization ratios:
d. Total asset turnover times
e. Inventory turnover times
f. Receivables turnover times
Long-term solvency ratios: 2014 2015
g. Total debt ratio times times
h. Debt–equity ratio times times
i. Equity multiplier times times
j. Times interest earned times
k. Cash coverage ratio times
Profitability ratios:
I. Profit margin %
m. Return on assets %
n. Return on equity %
Answer:
Smolira Golf Corp.
Short-term solvency ratios: 2014 2015
a. Current ratio 1.15 times 1.20 times
b. Quick ratio 0.67 times 0.72 times
c. Cash ratio 0.42 times 0.43 times
Asset utilization ratios:
d. Total asset turnover times 0.90 times
e. Inventory turnover times 9.03 times
f. Receivables turnover times 24.97 times
Long-term solvency ratios: 2014 2015
g. Total debt ratio times times 0.35 times 0.36 times
h. Debt–equity ratio times times 0.55 times 0.57 times
i. Equity multiplier times times 0.65 times 0.64 times
j. Times interest earned times 5.36 times
k. Cash coverage ratio times 1.50 times
Profitability ratios:
I. Profit margin % = 10.79%
m. Return on assets % = 9.70%
n. Return on equity % = 15.25%
Explanation:
a) Data and Calculations:
SMOLIRA GOLF CORP.
2014 and 2015 Balance Sheets
Assets
2014 2015
Current assets
Cash $24,236 $26,000
Accounts receivable 14,348 17,100
Inventory 27,892 29,000
Total current assets $ 66,476 $72,100
Fixed assets
Net plant &
equipment $343,695 $364,900
Total assets 410,171 $437,000
Liabilities and equity
Current liabilities:
Accounts payable $25,084 $29,000
Notes payable 19,000 12,700
Other current liabilities 13,471 18,300
Total $ 57,555 $60,000
Long-term debt $ 88,000 $99,000
Total $145,555 $159,000
Owners’ equity:
Common stock and
paid-in surplus $45,000 $45,000
Accumulated
retained earnings 219,616 233,000
Total liabilities and
owners’ equity $410,171 $437,000
SMOLIRA GOLF CORP.
2015 Income Statement
Sales $ 392,640
Cost of goods sold 257,000
Depreciation 48,800
Earnings before
interest and taxes $86,840
Interest paid 16,200
Taxable income $70,640
Taxes (40%) 28,256
Net income $ 42,384
Dividends $ 29,000
Retained earnings 13,384
Short-term solvency ratios: 2014 2015
a. Current ratio times times $ 66,476/$ 57,555 $72,100/$60,000
1.15 times 1.20 times
Current assets/Current liabilities
b. Quick ratio times times $38,584/$57,555 $43,100/$60,000
0.67 times 0.72 times
= (Current assets- Inventory)/Current liabilities
c. Cash ratio times times $24,236/$57,5555 $26,000/$60,000
0.42 times 0.43 times
Cash ratio = Cash/Current liabilities
Asset utilization ratios:
d. Total asset turnover times = Sales/Total asset = $ 392,640/$437,000 = 0.90 times
e. Inventory turnover times = Cost of goods sold/Average Inventory = $257,000/$28,446 = 9.03 times
f. Receivables turnover times = Sales/Average Receivable = $392,640/$15,724 = 24.97 times
Long-term solvency ratios: 2014 2015
g. Total debt ratio times times = Total Debt/Total Assets
= $145,555/$410,171 $159,000/$437,000
= 0.35 times 0.36 times
h. Debt–equity ratio times times
= $145,555/$264,616 $159,000/$278,000
= 0.55 times 0.57 times
i. Equity multiplier times times
= $264,616/$410,171 $278,000/$437.000
= 0.65 times 0.64 times
= Equity/Assets
j. Times interest earned times $86,840/$16,200
= 5.36 times
= EBIT/Interest Expense
k. Cash coverage ratio times = $24,236/$16,200 = 1.50 times
Profitability ratios:
I. Profit margin % = Net income/Sales = $42,384/$392,640 * 100 = 10.79%
m. Return on assets % = Net income/Assets
= $42,384/$437,000 * 100 = 9.70%
n. Return on equity % = Net income/Equity
= $42,384/$278,000 * 100
= 15.25%
Steve's only source of income for the year is a salary of $24,000. He is not married and has one dependent child who is eligible for the child tax credit. Steve's tax liability is $570 before any credits or prepayments are applied. He had $500 withheld from his salary. After applying the earned income credit, what is Steve's refund or balance due
Answer:
$2,678
Explanation:
Calculation for what is Steve's refund or balance due
Refund or balance due=3461 - [(24,000-18,660)*.1598]
Refund or balance due= 2607-(570-500)
Refund or balance due= $2,678
Therefore Steve's refund or balance due is $2,678
HELLPPPPPPPPPPP PLEAEE!!!!!!!!!
Answer:
c
Explanation:
relocation is the moving of people from one place to another
Answer:
relocation
Explanation:
but for me I will say it's called migration
Taxable income and pretax financial income would be identical for Skysong Co. except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared. Taxable income 2019 2020 2021 Excess of revenues over expenses (excluding two temporary differences) $148,000 $227,000 $96,400 Installment gross profit collected 8,400 8,400 8,400 Expenditures for warranties (5,500 ) (5,500 ) (5,500 ) Taxable income $150,900 $229,900 $99,300 Pretax financial income 2019 2020 2021 Excess of revenues over expenses (excluding two temporary differences) $148,000 $227,000 $96,400 Installment gross profit recognized 25,200 -0- -0- Estimated cost of warranties (16,500 ) -0- -0- Income before taxes $156,700 $227,000 $96,400 The tax rates in effect are 2019, 40%; 2020 and 2021, 45%. All tax rates were enacted into law on January 1, 2019. No deferred income taxes existed at the beginning of 2019. Taxable income is expected in all future years. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019, 2020, and 2021.
Answer:
Explanation:
This question was computed in an Excel SOlver and the result are shown below:
Date Particulars Debit($) Credit($)
31-Dec-19 Income tax expense 62970
Deferred tax asset 4950
Income taxes payable 60360
Deferred tax liability 7560
(To record income tax expense
for the year)
31-Dec-20 Income tax expense 102150
Deferred tax asset 3780
Income taxes payable 103455
Deferred tax asset 2475
(To record income tax expense
for the year)
31-Dec-21 Income tax expense 43380
Deferred tax liability 3780
Income taxes payable 44685
Deferred tax Asset 2475
(TO record income tax expense
for the year)
Assume that Toy Craft makes ragdolls. Each ragdoll requires 15 square feet of fabric. If the number of dolls to be produced during the quarter is 20,100, the desired ending inventory of fabric is 12,500 square feet, the beginning inventory of fabric is 23,900 square feet, and the cost of the fabric is $12 per square foot, what is the total cost of fabric purchases
Answer:
Total cost - Purchases = $3,481,200
Explanation:
We first need to find out the requirement for fabric to produce 20100 ragdolls and adjust it for the already available inventory of fabric (beginning inventory) and the desired ending inventory.
The production of 20100 ragdolls will require fabric of,
Fabric required = 20100 * 15 => 301500 square feet
The purchase of fabric in square feet will be,
Production = Beginning Inventory + Purchases - Ending Inventory
301500 = 23900 + Purchases - 12500
301500 + 12500 - 23900 = Purchases
Purchases = 290100 square feet
The total cost of fabric purchases will be,
Total cost - Purchases = 290100 * 12
Total cost - Purchases = $3,481,200
The labor force (sum of employed and unemployed workers) is fixed at 120 million. Each month, 2% of the workers who are employed at the beginning of the month lose their job, and 10% of the workers who are unemployed at the beginning of the month find a job. Assume that in January the number of workers without a job (unemployed) are 10 million. How many workers will be unemployed in March, that is, two months later
Answer:
Total number of unemployed (March)= 12,256,000
Explanation:
Giving the following information:
Total labor force= 120 million
Unemployed people (January)= 10 million
Each month, 2% of the workers who are employed at the beginning of the month lose their job, and 10% of the workers who are unemployed at the beginning of the month find a job.
First, we will calculate the unemployed and employed people for February:
New Unemployed= 110,000,000*0.02= 2,200,000
New employed= 10,000,000*0.1= 1,000,000
Total number of unemployed= 10,000,000 + 2,200,000 - 1,000,000= 11,200,000
Total number of employed= 110,000,000 + 1,000,000 - 2,200,000= 108,800,000
Now, for March:
New Unemployed= 108,800,000*0.02= 2,176,000
New employed= 11,200,000*0.1= 1,120,000
Total number of unemployed= 11,200,000 + 2,176,000 - 1,120,000= 12,256,000
Total number of employed= 108,800,000 + 1,120,000 - 2,176,000= 107,744,000
A person managing a dry-cleaning store for $30,000 per year decides to open a dry-cleaning store. The revenues of the store during the first year of operation are $100,000 and the expenses are $35,000 for salaries, $10,000 for supplies, $8,000 for rent, $2,000 for utilities, and $5,000 for interest on a bank loan. Calculate (a) the explicit costs, (b) the implicit costs, (c) the business profit, (d) the economic profit, and (e) indicate whether the person should open the dry-cleaning store.
Answer:
$60,000
$40,000
$30,000
$10,000
he can open the store
Explanation:
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
Explicit cost = $35,000 + $10,000 + $8,000 + $2,000 + $5,000 = $60,000
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. If he didn't open the dry cleaning stores he could be earning $30,000 as a manager. $30,000 is his implicit cost
Accounting profit or business profit = total revenue - explicit cost
$100,000 - $60,000 = $40,000
Economic profit = accounting profit - implicit cost
$40,000 - $30,000 = $10,000
Since his economic and accounting profit are positive, he can open the store
