Answer:
$25,000,000
Explanation:
Schaeffer corporation reports $52 million accumulated other comprehensive income in its balance sheet
The company reveals a net income of $520 million
Other comprehensive income is $27 million
Therefore the balance accumulated in last year's balance sheet can be calculated as follows
= $52,000,000 - $27,000,000
= $25,000,000
ACE Co. stock is not paying a dividend today, but has announced it will start paying a dividend in year 4 of $2.00 per share, and that will increase 5% per year forever. What is an estimate of the price of the stock today if r
Answer:
$77.22
Explanation:
the question is incomplete, so I looked for a similar question and found that Re = 9%
Div₀ = 0
Div₁ = 0
Div₂ = 0
Div₃ = 0
Div₄ = $2
the terminal value at year 3 = Div₄ / (Re - g) = $4 / (9% - 5%) = $100
in order to determine the current stock price we must discount $100 by 9% for 3 periods = $100 / 1.09³ = $77.22
According to the information above, which of the following is an appropriate analysis of the sales from the paper supplier? Select the correct answer below: From the data, the paper supplier had continued increasing sales over the 11 days. From the data, the paper supplier had continued decreasing sales over the 11 days. From the data, the paper supplier had decreasing sales from day 0 to day 5. After day 5, the sales increased. From the data, the paper supplier had increasing sales from day 0 to day 5. After day 5, the sales decreased.
Answer:
From the data, the paper supplier had decreasing sales over the 11 days.
Explanation:
The sales of the paper supplier have been declined over the 11 days. This might be because the demand for the paper is reduce due to lock down offices are closed and mostly work is done online on the soft copies. The paper supply has been increased and demand is decreased resulting in the price fall.
United Parcel Service, Inc. (Ticker: UPS (Links to an external site.)) estimates its cost for a distribution center at $18.63 million. Management has decided to invest $1.1 million a quarter to fund the project. Assuming that the firm can earn a return of 6.25 percent, compounded quarterly, on its savings, how long does the firm have to wait before expanding its operations
Answer:
It will take 182.44 quarters to reach $18,630,000.
Explanation:
Giving the following information:
Future Value= $18,630,000
Initial Investment= $1,100,000
Interest rate= 0.0625/4= 0.01563
To calculate the time required to reach the objective, we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(18,630,000 / 1,100,000) / ln (1.01563)
n= 182,44
It will take 182.44 quarters to reach $18,630,000.
ear Net Income Profitable Capital Expenditure 1 $ 14 million $ 8 million 2 18 million 11 million 3 9 million 6 million 4 20 million 8 million 5 23 million 9 million The Hastings Corporation has 2 million shares outstanding. (The following questions are separate from each other). a. If the marginal principle of retained earnings is applied, how much in total cash dividends will be paid over the five years? (Enter your answer in millions.)
Answer:
$42 Million
Explanation:
The computation of the total cash dividend is shown below:-
Year Net Income Profitable capital Expenditure Dividends
1 $14 Million $8 Million $6 Million
2 $18 Million $11 Million $7 Million
3 $9 Million $6 Million $3 Million
4 $20 Million $8 Million $12 Million
5 $23 Million $9 Million $14 Million
Total cash dividends $42 Million
A machine with a cost of $150,000 and accumulated depreciation of $95,000 is sold for $70,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:
Answer:
$0
Explanation:
The operating activities section of the cash flow statement under the direct method records the cash receipts with regard to sale of the products and the cash payments with regard to expenses
Therefore in the given case, it would be $0 as there is no transaction occured that should be reported in the operating activities section of the cash flow statement
The same is to be considered
In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures to a market value basis. KJM Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par) $10,000,000 Preferred stock 2,000,000 Common stock ($10 par) 10,000,000 Retained earnings 4,000,000 Total debt and equity $26,000,000 The bonds have a 4.0% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt
Answer:
$5,412,000
Explanation:
The semi annual interest = $20
Periods (n) till maturity are 10*2 = 20
Discounting rate is 12%/2 = 6%
Principal amount is $1,000
Market Value = 20 * PVIFA (20,6%) + 1,000 * PVIF (20,6%)
Market Value = 20 * 11.4699 + 1,000 * 0.3118
Market Value = 229.398 + 311.8
Market Value = 541.198
Market value = $541.20
Number of bonds = 10,000,000/1,000
Number of bonds = 10,000
Current market value = Number of bonds * Market value
Current market value = 10,000 * 541.20
Current market value = $5,412,000
Below is Salem Company’s income statement for 2019 that was prepared by an inexperienced accountant.
Salem Company
Income Statement
As of December 31, 2019
Revenues:
Sales revenue ……………..…………………………………… $298,000
Wages payable…………..……………………………………….. 4,000
Gain on sale of investment…………………………………….. 5,250
Deferred revenue………………………………………………. 2,500
Interest payable………………………………………………… 1,000
Accumulated depreciation……………………………………… 8,000
Total revenues ………………………………………………….. $318,750
Less operating expenses:
Selling expenses….……………………… …………………. $32,250
Research and development expense………………….…….. 4,75
Question Completion:
Research and development expense………………….…….. 4,750
Prepaid advertising …….…………………………………. 3,000
Indirect manufacturing labor cost..………………………… 16,200
Utilities expense..…. .....................………………………… 10,200
Direct manufacturing labor cost. ………………………..… 41,000
Factory equipment………………………………………….. 40,000
Insurance expense…………………….………………. …… 3,500
Restructuring costs………………………………………….. 4,000
Direct materials purchased………………………………..... 93,000
Interest expense……………………………………………. 1,750
Rent expense…..…………….………………. …………….. 18,000
Other factory indirect costs…………………………………. 3,000
Dividend paid………………………………………………. 1,500
Administrative expenses………………….…………………. 40,400
Short-term investment……………………………………… . 19,000
Total operating expenses …………………………………….. 331,550
Net operating loss …………………………………………….. ($10,800)
a. Seventy percent (70%) of utilities expense and 80% of insurance expense are for factory operations. Apply the remaining utilities and insurance expenses equally to selling expense and administrative expenses.
b. Sixty percent (60%) of the rent expense is associated with factory operations. Allocate the remaining rent equally to selling expense and administrative expenses.
c. Factory equipment was purchased January 1, 2017. It was estimated that the useful life of the equipment is 10 years and the residual value, $4,000. The $10,000 accumulated depreciation above is for 2017. No depreciation was charged for 2018. The company uses the double-declining balance method of depreciation.
d. Inventory balances are: January 1, 2018 December 31, 2018
Direct materials……………… $5,000 $6,600
Work-in-process ……………..$8,000 $10,000
Finished goods ……………$25,000 $28,000
e. The company’s tax rate is 21%. The president is disappointed with the results of operations and has asked you to review the income statement and make a recommendation as to whether the company should look for a buyer for its assets. Required:
1. As one step in gathering data for the president, prepare a corrected schedule of cost of goods manufactured for the year ended December 31, 2018.
2. As a second step, prepare a new multiple-step income statement for the year ended December 31, 2018.
3. Calculate the cost of producing one unit if the company produced 120,000 units in 2018 (round your answer to two decimal points).
Answer:
Salem Company
Income Statement
For the year ended December 31, 2019
Description Reference Amount ($) Amount ($)
Sales Revenue A 298,000.00
Cost of goods Sold:
Purchases - Change in Inventory 6,600.00
Direct Materials purchased 93,000.00
Direct Manufacturing labor cost 41,000.00
Manufacturing Costs:
Utilities Exp (70%) 7,140.00
Insurance Exp (80%) 2,800.00
Rent Exp (60%) 10,800.00 20,740.00
Total Cost of Goods Sold 161,340.00
Gross Profit $136,660.00
Operating Expenses:
Indirect Manufacturing labor cost 16,200.00
Other factory indirect cost 3,000.00
Selling Expenses 32,250.00
Utilities Exp (15%) 1,530.00
Insurance Exp (10%) 350.00
Rent Exp (20%) 3,600.00
Administrative Exp 40,400.00
R&D Expenses 4,750.00
Restructuring cost 4,000.00
Depreciation 7,200.00
Total Operating Expense 118,760.00
Operating Income $17,900.00
Non - Operating Expenses:
Interest Exp 1,750.00
Dividend Paid 1,500.00
Total Non- Operating Expense (3,250.00 )
Non-operating / Other Income
Gain on sale of investment 5,250.00
Total Non- Operating Income
Net Income before tax 19,900.00
Tax at 21% 4,179.00
Net Income after taxes $15,721.00
3. Assume company produced 120,000 units for year 2018, then cost per unit would be
Total cost of goods sold = $ 161,340 divided by 120,000 units
= $ 1.34 per unit
Explanation:
a) Data and Calculations:
Salem Company
Income Statement
As of December 31, 2019
Revenues:
Sales revenue ……………..…………………………………… $298,000
Wages payable…………..……………………………………….. 4,000
Gain on sale of investment…………………………………….. 5,250
Deferred revenue………………………………………………. 2,500
Interest payable………………………………………………… 1,000
Accumulated depreciation……………………………………… 8,000
Total revenues ………………………………………………….. $318,750
Less operating expenses:
Selling expenses….……………………… …………………. $32,250
Research and development expense………………….…….. 4,750
Depreciation= (40000-4000)*(100%/10yrs*2) = $7,200.00
Available-to-Promise: (choose all that apply) Check All That Apply Tells the sales force how many products are available to sell.Tells the sales force how many products are available to sell. Coordinates production and sales efforts.Coordinates production and sales efforts. Takes into account current inventory, confirmed orders, and scheduled production.Takes into account current inventory, confirmed orders, and scheduled production. Helps to determine when production is scheduled.
Answer:
B. Coordinates production and sales efforts.
C. Takes into account current inventory, confirmed orders, and scheduled production.
Explanation:
Available to promise is a feature in businesses where the person in charge links up the available goods to the customer's demands. It is a coordination of production and sales.
The personnel representing the business checks the current level of production and tries to see if the current level of production or even the scheduled production can meet up with customer's demands. Some computer software are used to perform this operation in real-time.
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Division Locomotive Division Corporate Total Cost of goods sold $45,500 $31,400 Direct operating expenses 27,800 22,800 Sales 91,800 66,500 Interest expense $2,800 General overhead 18,400 Income tax 4,500 The income from operations for the Rails Division is a.$46,300 b.$91,800 c.$18,500 d.$64,000
Answer: $18500
Explanation:
The income from operations for the rail divisions will be calculated thus:
For the rail division,
Sales = $91800
Cost of goods sold = $45500
Direct operating expense = $27800
Income from operations:
= $91800 - $45500 - $27800
= $18500
You invested $1,400 in an account that pays 7 percent simple interest. How much more could you have earned over a 20-year period if the interest had compounded annually
Answer:
$4,017,56
Explanation:
The Future Value is the amount that you would have earned over the 20year period. This will be greater than the amount of the initial investment due to the interest compounded.
The Future Value (FV) is calculated as follows :
PV = - $1,400
I = 7 %
N = 20
P/yr = 1
PMT = $0
FV = ?
Using a financial calculator to in put the values as shown, the Future Value will be $5,417.56.
The Total Interest on this Investment was $4,017,56 ($5,417.56 - $1,400).
The rate of economic growth per capita in France from 1996 to 2000 was 1.9% per year, while in Korea over the same period it was 4.2%. Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country remain the same.
Compute the doubling time for France’s per capita real GDP.
Compute the doubling time for Korea’s per capita real GDP.
What will France’s per capita real GDP be in 2045?
What will Korea’s per capita real GDP be in 2045?
Answer:
Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country remain the same. 1. Compute the doubling ... remain the same. 2. For Korea, the doubling time will be 72 ÷ 4.2 = 17.1years 3. ... Same with the above, there are 42yrs between 2003 and 2045.
Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. We use the rule of 70. The doubling time for France’s per capita real GDP is 70/1.9 = 36.8 years, so France's GDP will double in 2040. Explanation:
The maintenance expense (paid at the end of the year) on a machine, with 6 years of useful life, is expected to be (in constant dollars of year 0) $5,000 during the first year and to increase (in constant dollars) $500 each year for the following five years. The average inflation rate for the next 6 years is calculated to be 3%. What is the equivalent equal annual maintenance cost (in actual dollars) for the machinery if the interest rate is 8%
Answer: $1387.5
Explanation:
Given data:
Useful life of the machine = 6years
Inflation for the 6years period = 3%
Interest rate = 8%.
Cost of maintenance = $5000
Yearly increments = $500 for five years.
Solution:
Total cost of maintenance for five years
= cost of maintenance + yearly increments x 5
= $5000 + $500(5)
= $5000 + $2500
= $7500.
Interest rate on the machinery = 8%
= 0.08 x $7500
= $600
Inflation rate
= 0.03 x 7500
= $225
Equal yearly maintenance cost
= $7500 + $600 + $225/ 6
= $8325/6
= $1387.5
Accounts receivable had a debit balance of $4,000 at the beginning of the period, and a debit balance of $3,000 at the end of the period. Credit sales for the period totaled $22,000. Using this information, cash receipts for the period totaled:
a. $26,000
b. $32,000
c. $28,000
d. $20,000
Answer:
$23,000
Explanation:
The computation of the cash receipts is shown below:
= Opening balance of account receivable + credit sales - ending balance of account receivable
= $4,000 + $22,000 - $3,000
= $23,000
We simply applied the above formula
Hence, the cash receipts is $23,000
The above is the answer.
The options that are given is wrong
K Manufacturing would like to install a machine costing $37,500 with a life of 12 years to bring in benefits to the company of $5,100 per month. The monthly expenses for the machine are $4,650. If the MARR that the company uses is 12% per year, what should be the minimum salvage value as a percentage of the initial machine cost that the company should get at the end of the machine life to justify installing the machin
Answer:
$12,585
Explanation:
initial investment = -$37,500
then you have 143 cash flows = $5,100 - $4,650 = $450
the last cash flow = $450 + salvage value
we can use an annuity factor to determine the present value of the first 143 payments = $450 x 75.89853 (PV annuity factor, 1%, 143 periods) = $34,154.34
not considering the last cash flow, the NPV = -$37,500 + $34,154.34 = $3,345.66
we need to find the future value of $3,345.66:
FV = $3,345.66 x (1 + 12%)¹² = $13,034.61
the last cash flow = $13,034.61
salvage value = $13,034.61 - $450 = $12,584.61 ≈ $12,585
Sampson Industries has an annual plant capacity of 70,000 units; current production is 59,000 units per year. At the current production volume, the variable cost per unit is $26.00 and the fixed cost per unit is $4.80. The normal selling price of Sampson's product is $41.00 per unit. Sampson has been asked by Caldwell Company to fill a special order for 7,000 units of the product at a special sales price of $20.00 per unit. Caldwell is located in a foreign country where Sampson does not currently operate. Caldwell will market the units in its country under its own brand name, so the special order is not expected to have any effect on Sampson's regular sales. Read the requirementsLOADING.... Requirement 1. How would accepting the special order impact Sampson's operating income? Should Sampson accept the special order? Complete the following incremental analysis to determine the impact on Sampson's operating income if it accepts this special order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order.) Incremental Analysis of Special Sales Order Decision Total Order (7,000 units) Revenue from special order $140,000 Less expenses associated with the order: Less: Variable manufacturing cost 182,000 Contribution margin $(42,000) Less: Additional fixed expenses associated with the order – Increase (decrease) in operating income from the special order
Answer:
Sampson Industries
1. How would accepting the special order impact Sampson's operating income?
The acceptance of the special order will decrease Sampson's operating income by $42,000.
2. Should Sampson accept the special order?
No. Sampson should not accept the special order. It does not make any contribution in reducing the fixed costs. Instead, it decreases the net income. Special orders should be accepted when they add to the contribution in defraying the fixed costs, even if they do not add to the net income.
Explanation:
a) Data and Calculations:
Annual plant capacity = 70,000 units
Current production = 59,000
Variable cost per unit = $26.00
Fixed cost per unit = $4.80
Normal Selling price per unit = $41
Special order = 70,000
Price of special order = $20
Incremental Analysis of Special Sales Order Decision
Total Order (7,000 units)
Revenue from special order $140,000
Less expenses associated with the order:
Less: Variable manufacturing cost 182,000
Contribution margin $(42,000)
Less: Additional fixed expenses associated with the order –
Increase (decrease) in operating income from the special order ($42,000)
Hanover Glassware produces crystal serve ware and uses process costing. At the start of May, 2,300 units were in process. During May, 11,000 units were completed and 2,000 units were in process at the end of May. The units in process at the end of May were 80% complete with respect to material and 30% complete with respect to conversion costs. Other information is as follows: Work in process, May 1: Direct material $28,800 Conversion costs 48,000 Costs incurred during May: Direct material $198,000 Conversion costs 242,000 How much is the cost per equivalent unit for direct materials during May?
Answer:
$18.00
Explanation:
First calculate the equivalent units of production with respect for direct materials.
Ending Work In Process (2,000 × 80%) = 1,600
Completed and transferred out (11,000 × 100%) = 11,000
Equivalent units of production with respect to direct materials = 12,600
Then, calculate the cost per equivalent unit for direct materials
Cost per equivalent unit = Total Cost ÷ Total Equivalent Units
= ($28,800 + $198,000) ÷ 12,600
= $18.00
II. In order to establish a p-chart with 3-sigma control limits, you have collected the following 10 samples of size 300.
Sample Defects Sample Defects
1 25 6 15
2 22 7 14
3 17 8 15
4 42 9 16
5 16 10 16
Required:
a. Determine CL, UCL, and LCL for the p-chart.
b. Is the process in statistical control? Explain.
Answer and Explanation:
Please find answer and explanation attached
In 2018, the country of Brazil, had imports of $78.02 billion and had a favorable balance of trade. This means that Brazil had:_______
a. less than $78.02 billion in exports
b. exactly $78.02 billion in exports
c. more than $78.02 billion in exports
d. low inflation
e. an unfavorable exchange rate
Answer:
c. more than $78.02 billion in exports
Explanation:
The nation of Brazil had imports of $78.02 billion in 2018 and had a positive trade balance. This means that Brazil has exports of greater than $78.02 billion. That if a country's exports go beyond its imports, it is claimed that the country has a positive balance of trade. It indicates that Brazil has exports of greater than $78.02 billion.
Hence, the correct option is c.
A bank offers 8.00% on savings accounts. What is the effective annual rate if interest is compounded semi-annually?Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))
Answer:
Effective Annual Rate = 8.1600%
Explanation:
The effective annual rate the interest rate that is adjusted for compounding over a given period of time. It is given by the formula:
[tex]r = (1+\frac{i}{n})^n -1\\where:\\r = effective\ annual\ rate\\i = nominal\ interest\ rate\ = 8.00\% = 0.08 \\n = number\ of\ compounding\ periods\ per\ year\ = 2\ (semi-annually)[/tex]
[tex]r = (1+\frac{0.08}{2})^2 -1\\r = (1\ +\ 0.04)^2 - 1\\r = (1.04)^2 - 1\\r = 1.0816 - 1\\r = 0.0816\\r = 8.1600 \%[/tex]
All the long-term debt of a government, including the long-term debt that will be financed by Enterprise Fund revenues, is reported in the fund-level financial statements.
a. True
b. False
Answer: False
Explanation:
False.
Long term debt is a debt owed by an economic entity which could either be the inividual, a business or the government and such debts are expected to mature in a period of at least one year.
It should be noted that the long term debt isn't reported in fund level financial statement but rather it's reported in government wide statements.
Kahn Company paid $240,000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resulted in the development of a new machine that costs $300,000. The old machine costs $100,000 per year to operate, but the new machine could be operated for only $36,000 per year. The new machine, which will be available for delivery on January 1, year 3, has an expected useful life of four years. The old machine is more durable and is expected to have a remaining useful life of four years. The current market value of the old machine is $80,000. The expected salvage value of both machines is zero.
Required:
Based on this information, recommend whether to replace the machine. Support your recommendation with appropriate computations.
Answer:
Yes, the machine should be replaced
Explanation:
The computation is shown below:
Particulars old Machine New machine
Purchase price $300,000
Less:
Salvage value -$80,000
Operating cost $400,000 $144,000
($100,000 × 4 ) ($36,000 × 4)
Total cost $400,000 $364,000
So, the financial advantage is
= $400,000 - $364,000
= $36,000
Since there is a financial advantage of $36,000 so the old machine should be replaced with the new machine
Show how Cablevision can conduct an ROI analysis. Describe the information that the company should collect and how it should b collected.
Answer:
Explanation:
Cablevision can easily accomplish this by doing the following. First gather the number of sales of premium services and other products that non-trained individuals are accomplishing in a given time period (example, one month). Next, under the same conditions place the newly trained individuals and gather the same data from them (number of sales/subscribers gained, premium products, and other products). Finally, they would simply need to compare the difference in the number of sales to see if the training paid off. They would also need to calculate if the difference in sales surpasses the costs of training.
an example of an instrinsic reward is
Explanation:
An intrinsic reward is an intangible award of recognition, a sense of achievement, or a conscious satisfaction. For example, it is the knowledge that you did something right, or you helped someone and made their day better.
Cantlay, Inc., earns pretax book net income of $800,000 in 2019. Cantlay acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $80,000. Cantlay reported no other temporary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21% and Cantlay earns an after-tax rate of return on capital of 8%. What is Cantlay’s current income tax expense for the year?
Answer: $151,200
Explanation:
The Tax depreciation exceeds book depreciation so this excess will have to be removed from the income before tax is calculated as it is tax deductible.
Current Income Tax = (Pretax book income - Excess tax depreciation) * Income tax rate
= (800,000 - 80,000) * 21%
= $151,200
Your firm has a credit rating of BBB. You notice the credit spread for 5yr maturity BBB debt is 1.1% or 110 basis points. Your firm's 5yr debt has a coupon rate of 6% with annual payments. You see that new 5yr Treasury bonds are being issued at par with a coupon rate of 2.6%. What should the price of your outstanding 5yr bonds be per $100 face value?
a. $110.33.b. $115.75.c. $123.71.d. $112.54.
Answer:
Bond Price = $110.3260609 rounded off to $110.33
Option A is the correct answer.
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual interest rate in the market will be,
Coupon Payment (C) = 100 * 0.06 = $6
Total periods (n) = 5'
i or market interest rate = 2.6% + 1.1% = 3.7%
We use the market interest rate for BBB rated bonds in the calculation. The market rate can be found by taking the risk free rate and adding the credit spread for BBB rating bond in this case. The market rate comes out to be 3.7%
The formula to calculate the price of the bonds today is attached.
Bond Price = 6 * [( 1 - (1+0.037)^-5) / 0.037] + 100 / (1+0.037)^5
Bond Price = $110.3260609 rounded off to $110.33
The following account balances were listed on the trial balance of Edgar Company at the end of the period: AccountBalance Accounts Payable$31,600 Cash 49,900 Common Stock 35,000 Equipment 16,000 Land 47,500 Notes Payable 62,500 The company’s trial balance is not in balance and the company’s accountant has determined that the error is in the cash account. What is the correct balance in the cash account?
Answer: $65,600
Explanation:
Debits should equal credits
Debits = Cash + Equipment + Land
= 49,900 + 16,000 + 47,500
= $113,400
Credits = Accounts Payable + Common stock + Notes Payable
= 31,600 + 35,000 + 62,500
= $129,100
The difference will be added to the Cash account where the error is from.
= 49,900 + (129,100 - 113,400)
= $65,600
Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $152,000 Credit sales, $452,000 Selling and administrative expenses, $112,000 Sales returns and allowances, $32,000 Gross profit, $492,000 Accounts receivable, $130,000 Sales discounts, $16,000 Allowance for doubtful accounts credit balance, $1,400 Flyer prepares an aging of accounts receivable and the result shows that 3% of accounts receivable is estimated to be uncollectible. How much is bad debt expense
Answer:
$2,500
Explanation:
The computation of bad debt expense is shown below:-
Total Bad Debt = $130,000 × 3%
= $3,900
Balance of allowance for doubtful accounts after Bad debt Expense = Total bad debt - Allowance for doubtful account credit balance
= $3,900 - $1,400
= $2,500
So, we have applied the above formula.
The same is to be considered
If your business receives a loan for $40,000,
what account will you debit and what
account will you credit?
A. Debit Notes Payable and Credit Cash
B. Debit Cash and Credit Expenses
C. Debit Accounts Payable and Credit Cash
D. Debit Cash and Credit Notes Payable
the answer:
I would do c
A company purchased a weaving machine for $350,170. The machine has a useful life of 8 years and a residual value of $19,500. It is estimated that the machine could produce 769,000 bolts of woven fabric over its useful life. In the first year, 114,500 bolts were produced. In the second year, production increased to 118,500 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year
Answer:
$50955
Explanation:
Purchase value = $350170
Residual value = $19500
Total Production = $769000
Increase in production = $118500
Depreciation expense for second year = (Purchase value - Residual value)/Total Production * Increase in Production
Depreciation expense for second year = ($350170 - $19500 / $769000) * $118500
Depreciation expense for second year = $330670 / $769000 * $118500
Depreciation expense for second year = $50955
Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents. $3,000 cash deposit in checking account. $20,000 bond investment due in 20 years. $5,000 U.S. Treasury bill due in 1 month. $200, 3-year loan to an employee. $1,000 of currency and coins. $500 of accounts receivable.
Answer:
Total Cash and Cash Equivalent = $8,000
Explanation:
Particulars Amount (in $) Reason
Checking Account 3,000 Readily realizable
U.S. Treasury Bill 5,000 Due in 1 month
Currency and Coins 1,000 They are cash itself
Total Cash and Cash 8,000
Equivalents
