Answer:
an executive summary is compelling which reveals the company's mission statement, along with a short description of its products and services. its also good to briefly explain why you're starting your company and include details about your experience in the industry that you're entering
Hawkins Inc. had pre-tax accounting income of $1,800,000 and a tax rate of 35% in 2017, its first year of operations. During 2017 the company had the following transactions: Received rent from Barrett Co. for 2018 $64,000 Municipal bond income $80,000 Depreciation for tax purposes in excess of book depreciation $40,000 Installment sales revenue to be collected in 2018 $108,000 For 2017, what is the amount of income taxes payable for Hawkins Inc.
Answer:
Hawkins Inc.
For 2017, the amount of income taxes payable for Hawkins Inc. is:
= $572,600.
Explanation:
a) Data and Calculations:
2017 tax rate = 35%
Pre-tax accounting income = $1,800,000
2018 Rent from Barrett Co. 64,000
Less:
Exempt Municipal bond income (80,000)
Tax Depreciation (in excess of
book depreciation) (40,000)
2018 Installment sales revenue (108,000)
Adjusted taxable income $1,636,000
Income tax (35%) 572,600 (35% of $1,636,000)
Tax expense (provision) 630,000 (35% of $1,800,000)
b) The difference between the income tax payable of $572,600 and the provision for income tax expense for the year of $630,000 is due to temporary differences and exempt Municipal bond income. The temporary differences are caused by the different timings of the recognition of revenue and expenses under the tax jurisdiction and the GAAP accounting.
a stock analyst wants to use a dividend pricing model to value stock. the analyst believes will pay its first dividend in exactly 15 years, and she is guessing that the dividend will be $10.00 per share at that time. the analyst assumes that dividends will grow by 5% per year going forward after year 15. the required return to hold is estimated to be 12% per year. based on these assumptions, what is the intrinsic value of stock today
Answer:
P0 = $27.4044 rounded off to $27.40
Explanation:
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is the dividend expected in Year 1 or next year g is the constant growth rate in dividends r is the discount rate or required rate of return
To calculate the price of the stock today, we firsts need to calculate the price of the stock in year 15 and discount it back to today's value.
As we can see that to calculate the price of the stock today, we use dividend that is expected for the next period or Year 1. Thus to calculate the price of the stock in Year 15, we will use the dividend that will be expected in Year 16.
P15 = D15 * (1+g) / (r - g)
P15 = 10 * (1+0.05) / (0.12 - 0.05)
P15 = $150 per share
To calculate the price of this stock today, we must discount the Year 15 price to today's price.
P0 = P15 / (1+r)^15
P0 = 150 / (1+0.12)^15
P0 = $27.4044 rounded off to $27.40
On April 30, 2019, Macy Products purchased machinery for $132,000. The useful life of this machinery is estimated at 5 years, with a $32,000 residual value. The company uses the double-declining-balance method. Depreciation expense for the fiscal year ending on December 31, 2020 will be:
Answer:
$38,720
Explanation:
Depreciation Expense = 2 x SLDP X BVSLDP
where,
SLDP = 100 ÷ number of useful life
= 100 ÷ 5
= 20 %
2019
Annual Depreciation Expense = 2 x 20 % x $132,000
= $52,800
But, depreciation expired for only 8 months from April 30, 2019 to December 31, 2019 during the year, therefore
Depreciation Expense = $52,800 x 8/12 = $35,200
2020
Annual Depreciation Expense = 2 x 20 % x ($132,000 - $35,200)
= $38,720
Conclusion :
Depreciation expense for the fiscal year ending on December 31, 2020 will be $38,720
During March, Hanks Manufacturing started and completed 30,000 units. In beginning work in process, there were 5,000 units 60 percent complete with respect to conversion costs. Materials are added at the beginning of the process. In EWIP there were 10,000 units 40 percent complete for conversion costs. Using FIFO, the equivalent units of materials and conversion costs are, respectively:
Answer:
Equivalent units
Materials= 40,000 units
Conversion= 36,000 units
Explanation:
Equivalent units are notional whole units which represent incomplete work and are used to apportion cost between work progress and completed work
Equivalent units = Degree of work done(%) × units of inventory
Conversion cost
Item equivalent units
Opening inventory 40% × 5,000 = 2,000
Fully worked units 100% × 30,000= 30,000
Closing inventory 40%× 10,000= 4,000
Total equivalent unit 36,000
Notes
The following notes explains the computation of the items of equivalent unit for conversion cost:
1. DOC for opening inventory is 40% i.e 100%-60%. Remember that 60% work has been done in the previous period, so the balance is to be done in this current period
2. Fully work represent the units of inventory introduced in the current period and completed in the same period. Meaning 100% work was achieved in the period.
3. Closing work is only 40% completed. This represent work started this period but not yet completed.
Material cost
Item equivalent units
Opening inventory 0% × 5,000 = 0
Fully worked units 100% × 30,000= 30,000
Closing inventory 100%× 10,000= 10,000
Total equivalent unit 40,000
Notes
The following notes explains the computation of the items of equivalent unit for Material cost:
1. DOC for opening inventory is 0% i.e 100%-1000%. Remember that materials are added at the beginning. Hence all the materials required for the opening inventory had been added in the previous period
2. Fully work represent the units of inventory introduced in the current period and completed in the same period. Meaning 100% materials was added in the period.
3. All the materials required for the closing inventory were added in this period, hence, 100% degree of completion was used
Equivalent units
Materials= 40,000 units
Conversion= 36,000 units
For a cheese-lover, Burger King's Mac n' Cheetos are what type of product? (1pt)
Answer:
specialty product
Explanation:
For a cheese-lover, this product would be considered a specialty product. This is because they will actively seek out this product specifically because they love the ingredient/flavor of the product. For someone that loves cheese, products that are cheese flavored or contain cheese will be prioritized above all of the other products that do not contain cheese. This ultimately classifies the product as a specialty product because it is being sought after, even with other options around.
Alejandro, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2016. January 1, 2019 December 31, 2019 Fair value of pension plan assets $4,200,000 $4,500,000 Projected benefit obligation 4,800,000 5,160,000 Accumulated benefit obligation 840,000 1,020,000 Accumulated OCI – (Gains / Losses) -0- (90,000) The service cost component of pension expense for 2016 is $450,000 and the amortization of prior service cost due to an increase in benefits is $60,000. The settlement rate is 10% and the expected rate of return is 10%. What is the amount of pension expense for 2016?
Answer: $570,000
Explanation:
The amount of pension expense for 2016 is calculated below:
Service cost = $450,000
Add: Interest on projected benefit obligations = 10% × 4,800,000 = $480,000
Less: Expected return on plan assets = 10% × $4,200,000 = $420,000
Add: Amortization of prior service cost = $60,000
Pension expense = $570,000
What are products called that are special or different from those grown as commodities?
unique products
salable products
fungible products
differentiated products
Answer:
unique prroducts
Explanation:
A product is a commodity when all units of production are identical, regardless of who produces them. However, to be a differentiated product, a company's product is different than those of its competitors. On the continuum between commodities and differentiated products are many degrees and combinations of the two.
What type of arrangement(s), if any, would avoid double taxation for Wendall's and Shirley's endeavor? Choose the best answer if the choices below.
Answer:
An s corporation or a limited liability company, but not a corporation.
Explanation:
According to your question, is An S corporation, a limited liability company, or a corporation? Therefore Option D is correct.
What is Liability?Accounts payable, wages and taxes are examples of current obligations, which are sums owed for ongoing costs. Current obligations will also include payments on long-term debt due in the following year.
Liabilities include things like -
a bank loan
a mortgage loan
Payment due to suppliers (accounts payable)
Paid wages
tax debt
Liabilities are listed on a company's balance sheet. The entire number of liabilities must match the difference between the total amount of assets and the total amount of equity, according to the accounting equation.
Hence, An S corporation, a limited liability company, or a corporation is correct according to the question.
To know more about Liability follow the link.
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Your Question was incomplete but most probably your question was.
What type of arrangement(s), if any, would avoid double taxation for Wendall's and Shirley's endeavors? Choose the best answer if the choices below.
A. A corporation
B. A limited liability company
C. An S corporation
D. An S corporation, a limited liability company, or a corporation
E. An S corporation or a limited liability company, but not a corporation
Seattle Health Plans currently uses zero-debt financing. Its operating profit is $6 million, and it pays taxes at a 23 percent rate. It has $10 million in assets and, because it is all-equity financed, $10 million in equity. Suppose the firm is considering replacing 59 percent of its equity financing with debt financing that bears an interest rate of 9 percent. What impact would the new capital structure have on the firm's ROE (return on equity)
Answer: ROE increases by 56.5% to 102.7%
Explanation:
ROE before capital structure change:
= Net income / Equity
= (Operating income * ( 1 - tax)) / Equity
= (6,000,000 * (1 - 23%)) / 10,000,000
= 46.2%
With new capital structure:
Debt financing = 59% * 10,000,000
= $5,900,000
Interest = 9% * 5,900,000
= $531,000
Net income = (Operating profit - interest) * ( 1 - tax)
= (6,000,000 - 531,000) * ( 1 - 23%)
= $4,211,130
Return on Equity = 4,211,130 / ( 10,000,000 - 5,900,000)
= 102.7%
Difference:
= 102.7 - 46.2
= 56.5%
Identify each statement as either true or false. In the United States, banks keep the entire value of all customer deposits in the bank vault to meet customer withdrawals. Banks typically loan out a portion of customer deposits. Bank runs occur when many customers attempt to withdraw deposits from a bank at the same time and the bank is unable to pay all customer withdrawals. The Federal Deposit Insurance Corporation (FDIC) protects bank depositors from bank failure. The fractional reserve banking system requires all banks to keep the total value of customer deposits in their vaults to prevent bank runs. Answer Bank
Answer:
In the United States, banks keep the entire value of all customer deposits in the bank vault to meet customer withdrawals. FALSE.
Banks keep only a portion of the customer deposits in the bank vault. A small portion is kept with the Fed called the Reserve Requirement.
Banks typically loan out a portion of customer deposits. TRUE.
Banks only loan out the portion of customer deposits that they did not leave with the Fed.
Bank runs occur when many customers attempt to withdraw deposits from a bank at the same time and the bank is unable to pay all customer withdrawals. TRUE.
When too many people try to withdraw from a bank, the bank might not meet these obligations because they loaned out money to people and those people were not yet due to pay back. This is a bank run.
The Federal Deposit Insurance Corporation (FDIC) protects bank depositors from bank failure. TRUE.
The fractional reserve banking system requires all banks to keep the total value of customer deposits in their vaults to prevent bank runs. FALSE.
As explained in the first paragraph, the Fed requires that banks keep a portion of customer deposits with the Fed instead of the total value of customer deposits.
Answer:A
Explanation:
i just did it
Job destroyer? ~ The Wellcome Global Monitor is the world’s largest study into how people around the world think and feel about science and major health challenges. The battle between man and machines goes back centuries. Are they taking our jobs? Or are they merely easing our workload? According to the article in The Guardian titled "Technology has created more jobs than it has destroyed, says 140 years of data", a study by economists at the consultancy firm Deloitte concluded that rather than destroying jobs, technology has been a "great job-creating machine". The article further states that machines will take on more repetitive and laborious tasks but seem no closer to eliminating the need for human labor than at any time in the last 150 years.
How can our perceptions help us to choose the channel for our message?
a.
Sharing our perceptions will encourage our receivers to tell us what channel to use.
b.
Perceptions do not help us to choose the channel for our message.
c.
Perceptions about our receiver can help us to decide on the most appropriate channel.
d.
none of the above
Answer:
b was not correct on edge
Explanation:
True or False: Evaluation of a Request for proposal is based solely on price.
Answer:
false.
Explanation:
u help me i help you
This statement is false because there are many factors to be considered except price while evaluating the proposal.
What factors should keep in mind while evaluating a proposal?Evaluation of a proposal measures the progress of the condition between the project started and when the project was completed. To decide how many changes are required to make it successful.
there are many factors to keep in mind while evaluating a proposal are
Price of the projectCustomer review and preferenceThe competitive environmentThe uniqueness of the proposalTherefore this statement is false.
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Which examples demonstrate common qualifications for Quality Assurance careers? Check all that apply.
Claudia designs images and writes text for a product advertisement.
Harrison stands for long periods while checking the quality of a factory’s manufacturing process.
Mercedes inspects products on an assembly line to make sure they meet the company’s standards.
Lyle convinces customers to purchase defective products for a discounted price.
Arturo performs laboratory tests to check for pollution in the area near a factory.
Simone weighs and measures products to make sure they are the right size.
Answer:
2, 3, 6
Explanation:
Answer:
2,3,6 just did it on edge
Explanation:
Suppose that the residents of Greenland play golf incessantly. In fact, golf is the only thing they spend their money on. They buy golf balls, clubs, and tees. In 2019, they bought 1,000 golf balls for $2.00 each, 100 clubs for $50.00 each, and 500 tees for $0.10 each. In 2020, they bought 1,000 golf balls for $2.50 each, 100 clubs for $75.00 each, and 500 tees for $0.12 each. What was the CPI for each year
Answer:
CPI in 2020 =142.7
CPI in 2019 = 100
Explanation:
Inflation is the increase in the general price level. Inflation erodes the value of money.
Consumer Price Index(CPI ): This is the weighted average price of a basket of goods and services consumed by a typical consumer. It is used to measure the rate of inflation.
The increase in the CPI is taken to be the rate of inflation. For example, the CPI rose to 1.09 from 1.00, this implies an inflation rate of 9% within the time period in focus.
The CPI =
The price of a basket of goods in a current year ÷ Divided by the price of a basket of goods in a base year
The consumer price
CPI in 2019 = (1000× $2) + (100× $50) + ( 500× $$0.10)= 7050
CPI in 2020= (1000× $2.50) + (100× $75) + ( 500× $$0.12)=10,060
CPI in 2020 = 10,060/7050× 100 =142.7
CPI in 2019 = 100
CPI in 2020 =142.7
CPI in 2019 = 100
Note , we assume the CPI for 2019 is 100, since we were not provided with data to compute the price of a basket of good in 2018
An economy that produces goods and services based on long standing
customs is a
A command economy
D. market economy
c. mixed economy
ОО
D. traditional economy
Answer:c
Explanation:
On September 1, Home Store sells a mower (that costs $260) for $560 cash with a one-year warranty that covers parts. Warranty expense is estimated at 12% of sales and is recorded at the time of the sale. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Repair Parts Inventory. Prepare the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs. (Round your answers to 2 decimal places.)
Answer:
25
Explanation:
Burger Prince buys top-grade ground beef for $1.05 per pound. A large sign over the entrance guarantees that the meat is fresh daily. Any leftover meat is sold to the local high school cafeteria for 75 cents per pound. Four hamburgers can be prepared from each pound of meat. Burgers sell for 70 cents each. Labor, overhead, meat, buns, and condiments cost 40 cents per burger. Demand is normally distributed with a mean of 385 pounds per day and a standard deviation of 30 pounds per day. What daily order quantity is optimal
Chelsea is a dispatcher who answers calls from patients with medical emergencies
and assigns medical personnel to address patient needs. What education would
Chelsea most likely have needed to complete to get her job?
high school diploma
associate degree
bachelor's degree
master's degree
Answer:
The answer is an associate degree
Explanation:
I just took the test and got it right.
Answer:
associate degree is the answer
Your broker requires an initial margin of $6,100 per futures contract on wheat and a maintenance margin of $4,400 per contract. Wheat futures contracts are based on 5,000 bushels and quoted in cents per bushel. You sold one wheat futures contract yesterday at the closing settlement price quote of 780. Today, the settlement quote is 802. Will you receive a margin call and if so, for what amount? All margin calls restore the margin level to its initial level.
Answer: No margin call
Explanation:
Based on the information given in the question, the new margin will be calculated as:
= Initial margin + (Sales - Settlement quote)/100 × Size
= 6100 + [(780 - 802)/100 × 5000]
= 6100 + (-22 × 5000)
= 6100 - 1100
= 5000
Since we've our new margin as 5000 while the maintenance margin is 4400, then there'll be no margin call once new margin is higher.
Which form of currency is a promissory note that is to be paid back with
interest at a certain date?
A. A banknote
B. A government bond
C. A paper dollar
D. A treasury note
Answer:
D.
Explanation:
A treasury note is a form of currency that needs to get paid back with interest at a certain date.
Treasury notes, also known as T-notes, are issued by the US treasury. It earns a fixed interest rate every six months till it gets matured. The treasury notes get issued in terms of 2, 3, 5, 7, and 10 years. By issuing the treasury notes, the US government partially funds itself.
A treasury note is a promissory note that is to be paid back with interest.
Therefore, option D is correct.
Answer:B, a government bond
Explanation:
Just took the test.
On December 1, Year 1, Childe Company purchased $100,000 of bonds issued by Paperman Company at face value. The bonds mature in ten years. Childe’s intent was to keep the bonds available to sell when cash needs arise in future years. The fair value of those bonds increased to $102,000 on December 31, Year 1. Which of the following statements are correct with regards to this investment? (Select all that apply.) Check All That Apply The bonds should be reported among assets in the balance sheet at December 31, Year 1. The bonds should be reported among assets in the balance sheet at December 31, Year 1. The bonds should be reported at their fair value of $102,000 in the balance sheet. The bonds should be reported at their fair value of $102,000 in the balance sheet. An unrealized holding gain of $2,000 should be included in net income for Year 1. An unrealized holding gain of $2,000 should be included in net income for Year 1. An unrealized gain of $2,000 should be included in other comprehensive income for Year 1.
Answer: A- The bonds should be reported among assets in the balance sheet at December 31, Year 1.
B- The bonds should be reported at their fair value of $102,000 in the balance sheet.
D- An unrealized gain of $2,000 should be included in other comprehensive income for Year 1.
Explanation:
what gives rise to the problem of scarcity
Answer:
Explanation:
Often scarcity is caused by a combination of demand and supply induced effects. A rise in demand, e.g. due to rising population causes overcrowding and population migration to other fragile ecological areas
Fred is a car owner with automobile insurance with coverage only for accident liability. Choose the statements that accurately
describes the out-of-pocket costs to Fred for an accident that was determined to be Fred's fault.
A)
Fred must pay for the damages to the car with which he was in an accident
B)
Fred must pay for the damages done to his own car resulting from the
accident
Fred must pay for the bodily injuries to the other driver involved in the
accident
Fred must pay for any increases to his insurance premium occurring due to
the accident
D)
E)
Fred must pay for any of his own medical bills not covered by his own
health insurance resulting from the accident.
Answer:
B) Fred must pay for the damages done to his own car resulting from the accident.E) Fred must pay for any of his own medical bills not covered by his own health insurance resulting from the accident.Explanation:
Fred has insurance coverage for only accident liability. This means that his insurance will only pay for damage to the other party in the accident if it was Fred's fault and they will not cover Fred's own expenses.
Fred must therefore pay for damages done to his own car because his insurance will not cover that. Any medical bills that he incurs as a result of the accident that his medical insurance does not pay for will also have to be paid by him.
Unibic India: From Fastest Growing Niche Cookie Brand to a Challenger?
In 2007, Lighthouse Funds acquired a 25% stake in Unibic from Unibic Australia for Rs. 200 million. In 2010,
Unibic Australia started making losses and wanted to withdraw from the Indian market. At that time, Unibic
operated solely in the premium, high-margin cookies segment in India, with a share of around 8%. It had a
market presence primarily in south India and was exporting to the Middle East and Hong Kong. It had strategic
alliances to make cookies for various private players. However, it was not yet making profits and was cash-
strapped...
Over the next few years, Unibic grew rapidly. Its growth was primarily fueled by the changes sweeping through
the Indian biscuit industry, wherein glucose biscuits that had dominated the market, gradually lost out to cream
biscuits and cookies. The reasons for the shift included rising disposable incomes leading to an increase in
consumption of premium biscuits; a larger number of manufacturing facilities of premium biscuits; growing
health awareness; innovation bringing in attractive new products; rising affordability of cookies; and increase
in eye-catching packaging...
Over the years, Unibic regularly introduced fresh and unique flavors, ultimately producing over 30 variants of
cookies. Its products could be broadly categorized into chocolate, butter, milk, savory, and health. The company
considered its target market to be between the ages of 14 and 40. It continued its efforts at innovation and
produced new products which would appeal to its target market...
In 2015, Unibic had used celebrity endorsement by signing on south Indian actor Shruti Hassan, for over a year.
It stated that it wanted someone who was relevant and would give the brand a boost to get to the numbers it
wanted in the South...
Unibic didn’t advertise much in print media; TV remained the company’s core focus and got the largest chunk
of its advertising spend, followed by digital and OOH. Instead of following the traditional strategy of having a
similar marketing campaign across markets, Unibic employed a unique strategy in each market, thereby playing
to its strengths in each market while keeping in mind the market conditions and consumption patterns...
From 2019 onward, Unibic started feeling the heat of the economic slowdown in India. The Indian economic
slowdown of 2019 led to a serious and continuing decline in the country’s real estate, automobile and
construction sectors and in overall consumption demand. The second quarter (July- September) of the financial
year (April 2019-March 2020) witnessed a drastic fall in the gross domestic product (GDP) growth rate to 4.5%.
The main reasons attributed to the fall in the GDP growth rate were – contraction in manufacturing activity,
weakened investments, and lower consumption demand.
As of 2020, Unibic had the largest wire cut cookie manufacturing plant in India. The plant had the capability to
manufacture 100 tonnes of cookies each day, with five production lines. While it used 98% of its production
capability to produce its own brand, the rest was used to manufacture for private label brands – six in India and
10 across the world. It had annual revenu7 es of Rs. 5 billion. It also exported its products to more than 21
countries including across Australia, North America, the UK, and Europe, Asia, the Middle East, and New
Zealand. It derived 45% of its earnings from the south of India.
Questions:
a) Explain three factors that had a negative impact on the financial performance of Unibic in its early years.
(6 marks)
b) Which environmental force did Unibic use in segmenting its market? What is this force about? (6 marks)
c) What does the following statement suggest to you about Unibic: “It continued its efforts at innovation
and produced new products which would appeal to its target market”?
d) Which marketing strategy did Unibic use in 2015 and explain any two (2) reasons why firms adopt that
strategy? (9 marks)
e) What main media did Unibic use to implement its marketing strategy? State one advantage of this media.
(6 marks)
Answer:
Explanation:I want an answer
Marigold Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 250 $14 $ 3,500 April 15 purchase 420 17 7,140 April 23 purchase 330 18 5,940 1,000 $16,580 Calculate weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.) Weighted average cost per unit $enter weighted average cost per unit in dollars rounded to 2 decimal places LINK TO TEXT Compute the April 30 inventory and the April cost of goods sold using the average-cost method. (Round answers to 0 decimal places, e.g. 2,760.) Ending inventory $enter the ending inventory in dollars rounded to 0 decimal places Cost of goods sold
Answer:
Marigold Company
Cost of goods sold = $9,119
Ending inventory = $7,461
Explanation:
a) Data and Calculations:
Units Unit Cost Total Cost
April 1 inventory 250 $14 $ 3,500
April 15 purchase 420 17 7,140
April 23 purchase 330 18 5,940
Total 1,000 $16,580
Weighted-average costs $16.58
Sales 550
Cost of goods sold = 550 * $16.58 = $9,119
Ending inventory = 450 * $16.58 = $7,461
b) The first computation is for the total cost of goods available, which is then divided by the total units available for sale. This gives the weighted-average cost per unit. This unit cost is then multiplied with the units of ending inventory and sales to obtain the cost of the ending inventory and the cost of goods sold, respectively.
Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the computers was $130,000. This noncancelable lease had the following terms: Lease payments: $23,000 semiannually; first payment at January 1, 2018; remaining payments at June 30 and December 31 each year through June 30, 2022. Lease term: five years (10 semiannual payments). No residual value; no purchase option. Economic life of equipment: five years. Implicit interest rate and lessee's incremental borrowing rate: 5% semiannually. What is the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet
Answer:
$89,350
Explanation:
Calculation to determine the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet
First step is to calculate the Balance after first payment
Initial lease liability $130,000
Less: First payment $23,000
Balance after first payment $107,000
Second step is to calculate the Interest expense for June 30,2021
Interest expense for June 30,2021= $107,000*5%
Interest expense for June 30,2021=$5,350
Third step is to calculate the Principal payment for June 30,2021
Principal payment for June 30,2021=$23,000-$5,350
Principal payment for June 30,2021=$17,650
Now let calculate the Outstanding balance on June
Balance after first payment. $107,000
Less: Principal payment for June $17,650
Outstanding balance on June $89,350
Therefore the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet is $89,350
Identify which of the following statements are true for the corporate form of organization. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
Ownership rights cannot be easily transferred
Ownership rights cannot be easily transferred
Owners have unlimited liability for corporate debts
Capital is more easily accumulated than with most other forms of organization.
Corporate income that is distributed to shareholders is usually taxed twice.
It is a separate legal entity.
It has a limited life.
Owners are not agents of the corporation.
Answer:
Statements that are true:
a. Capital is more easily accumulated than with most other forms of organization.
b. Corporate income that is distributed to shareholders is usually taxed twice.
c. It is a separate legal entity.
d. Owners are not agents of the corporation.
In a corporation, capital is more easily accumulated because the company has easier access to loans and can go into the stock market to get more capital.
Corporate income to shareholders is taxes twice. First is when the net income is taxed, second is when the dividends are taxed.
Corporations are a separate entity from their companies which means they are not held for the debt if the company.
Owners are not agents of the corporation. They are the Principal.
Sales $ 79,000 $ 65,000 $ 61,000 $ 57,000 $ 50,000 Cost of goods sold 75,900 50,100 49,800 40,200 30,000 Dollar amounts stated are in thousands. a. Compute trend percentages for the above items taken from the financial statements of Lopez Plumbing over a five-year period. Treat 2017 as the base year. b. State whether the trends are favorable or unfavorable.
Answer:
This is a two part question and the answer is given in two separate headings.
Explanation:
Trend Percentages
Year 2021 2020 2019 2018
Sales* 58% 30% 22% 14%
Cost of Goods Sold** 153% 67% 66% 34%
*Sales is calculated by dividing the difference (between current Sales and Base Sales Year) by the Base Sale Year 2017 * 100. Example for 2018 the percentage is 14% [(57,000 - 50,000) / 50,000 * 100]. The same way other years have been calculated.
**Cost of Goods Sold has been calculated by dividing the difference (between current Cost of Goods Sold and Base Year Cost of Goods Sold) by the Base Year Cost of Goods Sold 2017 * 100. Example for 2018 the percentage is 14% [(40,200 - 30,000) / 30,000 * 100]. The same way other years have been calculated.
Trends Favourable or Unfavourable
It is noted that the trend is unfavourable for the five-year period. This is because the sales have been increasing but in comparison to the Cost of Goods Sold the rise is fairly slow. As shown in the above table where sales have increased by only 58% since its inception. However, the Cost of Goods Sold has increased rapidly and by the last trending year the rise in comparison to the base year 2017 was by 153%.
Bandar Industries manufactures sporting equipment. One of the company’s products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. The plastic cost the company $171,000. According to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 35,000 helmets? 2. What is the standard materials cost allowed (SQ × SP) to make 35,000 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance?
Answer:
1. 21,000 kg of plastic
2. $168,000
3. $3000 Unfavorable
4. Materials Price variance $9000 Favaorable
Materials Quantity variance $12,000 Unvaforable
Explanation:
1. Calculation to determine the standard quantity of kilograms of plastic (SQ) that is allowed to make 35,000 helmets
Using this formula
Standard quantity of kilograms of plastic (SQ) = Standard quantity required per helmet x Total no. of helmets
Let plug in the formula
Standard quantity of kilograms of plastic (SQ) = 0.60 kg x 35,000
Standard quantity of kilograms of plastic (SQ) = 21,000 kg of plastic
Therefore The standard quantity of kilograms of plastic (SQ) that is allowed to make 35,000 helmets is 21,000 kg of plastic
2. Calculation to determine the standard materials cost allowed (SQ X SP) to make 35,000 helmets
Using this formula
Standard materials cost allowed (SQ X SP) = Standard quantity required per helmet x Standard cost per kg x Total no. of helmets
Let plug in the formula
Standard materials cost allowed (SQ X SP)= 0.60 x $8 x 35,000
Standard materials cost allowed (SQ X SP)= $168,000
Therefore The standard materials cost allowed (SQ X SP) to make 35,000 helmets is $168,000
3. Calculation to determine the materials spending variance
First step is to calculate the Materials Price variance
Using this formula
Materials Price variance = (AQ × AP) - (AQ × SP)
Let plug in the
Materials Price variance= $171,000 - (22,500 x $8)
Materials Price variance= $171,000 - 180,000
Materials Price variance= -$9,000
= $9000 Favaorable
Second step is to calculate the Materials Quantity variance using this formula
Materials Quantity variance = (AQ × SP) - (SQxSP)
Let plug in the formula
Materials Quantity variance=
Materials Quantity variance= 180,000 - $168,000
Materials Quantity variance=$12,000
Materials Quantity variance= $12,000 Unvaforable
Now let calculate the Materials spending variance using this formula
Materials spending variance = Price variance + Quantity variance
Let plug in the formula
Materials spending variance= -$9,000+ $12,000 Materials spending variance= $3,000
Materials spending variance= $3000 Unfavorable
Therefore Materials spending variance is $3000 Unfavorable
4. Calculation to determine the materials price variance and the materials quantity variance
Calculation for the Materials Price variance Using this formula
Materials Price variance = (AQ × AP) - (AQ × SP)
Let plug in the formula
Materials Price variance= $171,000 - (22,500 x $8)
Materials Price variance= $171,000 - 180,000
Materials Price variance= -$9,000
Materials Price variance= $9000 Favaorable
Therefore Materials Price variance is $9000 Favaorable
Calculation to determine Materials Quantity variance using this formula
Materials Quantity variance = (AQ × SP) - (SQxSP)
Let plug in the formula
Materials Quantity variance= = 180,000 - $168,000
Materials Quantity variance=$12,000
Materials Quantity variance= $12,000 Unvaforable
Therefore Materials Quantity variance is $12,000 Unvaforable
