Answer:
Please find attached.
Explanation:
Please find attached the journal entries per the attached question
Forest Components makes aircraft parts. The following transactions occurred in July.
1. Purchased $119,000 of materials on account.
2. Issued $117,600 in direct materials to the production department.
3. Issued $8,400 of supplies from the materials inventory.
4. Direct labor employees earned $217,000, which was paid in cash.
5. Purchased miscellaneous items for the manufacturing plant for $120,400 on account.
6. Recognized depreciation on manufacturing plant of $245,000.
7. Applied manufacturing overhead for the month.
8. Job X that cost $533,000 was completed.
9. Some units in Job X, that cost $521,500, were sold for $800,000 cash.
10. After all of the previous transactions posted, the Manufacturing overhead control account shows a debit balance of $373,800, and the Applied manufacturing overhead account shows a credit balance of $201,800. The over- or under-applied overhead was closed to Cost of goods sold. 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.
Required:
a. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
b. Prepare journal entries to record these transactions.
Answer and Explanation:
Answer and explanation attached
Beginning raw materials = ending raw materials +raw materials for production+issued raw materials- raw materials purchased -raw materials returned from production= $79800
Cost of goods manufactured =ending finished goods+cost of goods sold -beginning finished goods= $553000
Beginning work in progress inventory=
Ending work in progress + cost of goods manufactured + materials returned - manufacturing overhead applied- issued raw materials-direct labour wages =$105490
Professionalism is a skill necessary for......
Professional skills are career competencies that often are not taught (or acquired) as part of the coursework required to earn your masters or PhD.
Answer:
Professional skills such as leadership, mentoring, project management, and conflict resolution are value-added skills essential to any career.
The manager of a computer help center needs to determine a shift schedule for
his sta . The center is open from 8am until midnight (12am), and is divided into four shifts. The number of employees needed on each shift is as follows: 4 on the rst shift (8am-12pm), 10 on the second shift (12pm-4pm), 8 on the third shift (4pm-8pm), and 6 on the last shift (8pm-12am). Two types of employees can be hired to sta the computer center: full-time employees and part-time employees. Full-time employees must be hired for two consecutive shifts, and can be hired to start in the rst, second or third shift. Part-time employees are hired for a single shift. Full-time employees are paid $14 an hour, while part-time employees are paid $12 an hour. Lastly, during each of the shifts, there must be at least two full-time employees sta ed for every part-time employee.
Formulate a linear programming model to satisfy the stang requirements at minimum cost.
Explanation:
we have to define certain variables in ordet for us to formulate the linear programming model
[tex]aj =[/tex] the number of full time staff hired at time j
[tex]bj=[/tex] number of full time staff hired at time j
1 full time emploer 8hrs x 14$
= 112 dollars
1 part time worker = 4hrs x $12
= 48 dollars
we set up the model as:
[tex]minimize 112(a_{1} +a_{2} +a_{3} )+48(b_{1} +b_{2} +b_{3})[/tex]
[tex]a_{1} + b_{1} = 4[/tex]
[tex]a_{1} +a_{2} +b_{2} = 10[/tex]
[tex]a_{2} +a_{3} +b_{3} =8[/tex]
[tex]a_{3} +b_{4} =6[/tex]
[tex]a_{1} >2b_{1}[/tex]
[tex]a_{1} +a_{2} \geq 2b_{2}[/tex]
[tex]a_{2} +a_{3} \geq 2b_{3}[/tex]
[tex]a_{3} \geq 2b_{4}[/tex]
[tex]a_{j} ,b_{j} \geq 0[/tex]
∀j
Assume these events happened to Bakko, Inc. in Year 4. Bakko uses December 31 for the annual reporting period. At the beginning of Year4, Bakko owns 12 donut stores and 30 gas stations. Each of the 42 businesses is a separate business component. Bakko sells 2 donut stores in Year4 on October 1. The disposition is not considered to be a strategic shift. Bakko sells 6 gas stations in urban areas on May 1. The disposition is considered to be a strategic shift.
Match each of the following descriptions to where it would most likely be reported on Bakko's corporate income statement for Year 4.
1. Gain of $12,000 on sale of some equipment from one of the gas stations that Bakko still owns at 12/31/Year 4.
2. Bakko receives $5,000 for a fuel contract that will begin in Year 5.
3. Bakko has $100,000 gain on the sale of the gas stations on May 1, Year 4.
4. Operating results through April 30,Year 4 for the gas stations that were sold.
5. Bakko has a $20,000 loss on the sale of the donut stores on October 1.
A. Part of income from continuing operations.
B. As a discontinued operation.
C. Not part of net income for Year 4.
Answer:
1. Gain of $12,000 on sale of some equipment from one of the gas stations that Bakko still owns at 12/31/Year 4. - Part of income from continuing operations.
The gas station is still owned by Bakko so the gain received will form part of income from continuing operation.
2. Bakko receives $5,000 for a fuel contract that will begin in Year 5. - Not part of net income for Year 4
As per the Revenue Recognition principle of Accounting, revenue is only to be recorded when earned which means that this revenue will be in the Year 5 income.
3. Bakko has $100,000 gain on the sale of the gas stations on May 1, Year 4. - As a discontinued operation.
The gas station has been sold and so is a discontinued operation.
4. Operating results through April 30,Year 4 for the gas stations that were sold. - As a discontinued operation.
The gas station has been sold and so is a discontinued operation. Will be reported in the Income statement as such.
5. Bakko has a $20,000 loss on the sale of the donut stores on October 1. - As a discontinued operation.
The donut store was sold and is no longer a part of Bakko so is a discontinued operation.
Compute Net Operating Assets Selected balance sheet and income statement information for Home Depot follows.
$ millions Jan. 31, 2016 Feb. 01, 2015
Operating assets $40,583 $38,473
Nonoperating assets 2,241 1,748
Total assets 42,824 40,221
Operating liabilities 15,018 13,527
Nonoperating liabilities 21,340 17,222
Total liabilities 36,358 30,749
Sales 88,944
Net operating profit before tax (NOPBT) 12,024
Nonoperting expense before tax 778
Tax expense 4,208
Net income 7,038
Compute net operating assets for the years ended January 31, 2016 and February 1, 2015.
2016 NOA $Answer
2015 NOA $Answer 0
Answe
4
English
4
Social Studies
1
Geography
1
World Languages
1
Spanish
1
Show More
My challenges
Answer 5 questions from any subject in 48 hours to collect 50 points
3/5
1d : 23h
Challenges to complete
Answer 10 questions from any subject in 48 hours to collect 100 points
0/10
2d : 00h
START
You may attempt only one challenge at a time.
Answer 25 questions from any subject in 48 hours to collect 400 points
0/25
2d : 00h
START
You may attempt only one challenge at a time.
Answer 5 English questions in 48 hours to collect 50 points
0/5
2d : 00h
START
You may attempt only one challenge at a time.
Answer 10 English questions in 48 hours to collect 100 points
0/10
2d : 00h
START
You may attempt only one challenge at a time.
Answer 25 English questions in 48 hours to collect 400 points
0/25
2d : 00h
START
You may attempt only one challenge at a time.
Answer 5 Mathematics questions in 48 hours to collect 50 points
0/5
2d : 00h
START
You may attempt only one challenge at a time.
Answer 10 Mathematics questions in 48 hours to collect 100 points
0/10
2d : 00h
START
You may attempt only one challenge at a time.
Answer 25 Mathematics questions in 48 hours to collect 400 points
0/25
2d : 00h
START
You may attempt only one challenge at a time.
Answer 5 Social Studies questions in 48 hours to collect 50 points
0/5
2d : 00h
START
You may attempt only one challenge at a time.
Answer 10 Social Studies questions in 48 hours to collect 100 points
0/10
2d : 00h
START
You may attempt only one challenge at a time.
Answer 25 Social Studies questions in 48 hours to collect 400 points
0/25
2d : 00h
START
You may attempt only one challenge at a time.
Answer 5 History questions in 48 hours to collect 50 points
0/5
2d : 00h
START
You may attempt only one challenge at a time.
Answer 10 History questions in 48 hours to collect 100 points
0/10
2d : 00h
START
You may attempt only one challenge at a time.
Answer 25 History questions in 48 hours to collect 400 points
0/25
2d : 00h
START
You may attempt only one challenge at a time.
WE'RE IN THE KNOW
This site is using cookies under cookie policy. You can specify conditions of storing and accessing cookies in your browser
Company
About us
Blog
Careers
Terms of Use
Copyright Policy
Privacy Policy
Cookie Policy
Cookie Preferences
Community
Brainly Community
Brainly for Schools & Teachers
Brainly for Parents
Brainly Scholarship Program
Honor Code
Community Guidelines
Community Insights
Become a Volunteer
Help
Signup
Help Center
Safety Center
Responsible Disclosure Agreement
Contact Us
Get the Brainly App
Download iOS App
Download Android App
How to add a great answer
ADD YOUR ANSWER
Question
Compute Net Operating Assets Selected balance sheet and income statement information for Home Depot follows.
$ millions Jan. 31, 2016 Feb. 01, 2015
Operating assets $40,583 $38,473
Nonoperating assets 2ating liabilities 15,018 1erating liabilities 21,340 17,222
Total liabilities 36,358 30,749
Sales 88,944
Net operating profit before tax (NOPBT) 12,024
Nonoperting expense before tax 778
Tax expense 4,208
Net income 7,038
Compute net operating assets for the years ended January 31, 2016 and February 1, 2015.
2016 NOA $Answer
2015 NO
Microsoft develops, produces, and markets a wide range of computer software, including the Windows operating system. On its recent financial statements, Microsoft reported the following information about net sales revenue and accounts receivable (amounts in millions).
Current Year Prior Year
Accounts receivable, net of allowances of $405 and $426 $19,792 $18,277
Net sales revenue 89,950 85,320
According to its Form 10-K, Microsoft recorded bad debt expense of $14 and there were no bad debt recoveries during the current year.
Required:
What amount of bad debts was written off during the current year?
Answer:
$106 million
Explanation:
allowance for doubtful accounts
debit credit
beg. balance 426
bad debt 85
ending balance 405
106
Since you need $106 million to balance the account, that should be the amount of bad debt written off during the current year. Allowance for doubtful accounts is a contra asset account, any debit balance increases accounts receivable while a credit balance decreases it.
What designation would you hold if you have the most common designation in the accounting field, which is also considered the backbone of the accounting function?
The certification of Public accountant will be held by an employee if he/she has most common designation in the accounting field.
What is a certification of Public accountant?This license are issued to accounting professionals that have an extensive education and has pass a rigorous four-part exam and meet experience.
Hence, the license will be by an employee if he/she has most common designation in the accounting field.
Read more about certification
brainly.com/question/24931496
#SPJ1
Prepare the journal entries to record the following transactions on Sunland Company's books using a perpetual inventory system.
a. On March 2, Splish Brothers Company sold $885,600 of merchandise to Sunland Company on account, terms 2/10, n/30. The cost of the merchandise sold was $519,500.
b. On March 6, Sunland Company returned $110,200 of the merchandise purchased on March 2. The cost of the merchandise returned was $63,000.
c. On March 12, Splish Brothers Company received the balance due from Sunland Company.
Answer:
a. March 2, 202x, merchandise purchased on account from Splish Brothers, credit terms 2/10, n/30
Dr Merchandise inventory 885,600
Cr Accounts payable 885,600
b. March 6, 202x, defective/wrong merchandise returned to Splish Brothers
Dr Accounts payable 110,200
Cr Merchandise inventory 110,200
c. March 12, 202x, paid invoice to Splish Brothers within discount term
Dr Accounts payable 775,400
Cr Cash 759,892
Cr Purchase discounts 15,508
purchase discount = purchase balance x 2% = $775,400 x 2% = $15,508
Chicago's Hard Rock Hotel distributes a mean of 1,000 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy. The laundry firm that has the linens contract requires a 2-day lead time. The hotel expects a 98% service level to satisfy high guest expectations.
Required:
a. What is the reorder point?
b. What is the safety stock?
c. What is the ROP?
Answer:
1. Reorder point = 2,290 towels
2. Safety shock = 290 towels
Explanation:
1. Reorder Point
ROP = (Average daily demand * Lead time in days) + Z*б(dlt)
Z= No of SD depending on the service level of 98%
б(dlt) = SD in demand during the lead time
We derive б(dlt) given the SD in demand б(d) = 100 towels/day using the formula
б(dlt) = б(d) *[tex]\sqrt{ Lead time}[/tex] .................(2)
Where the lead time = 2 days
Substitute in equation 2, the value of б(d) = 100 towels/day and Lead time = 2 days to obtain
б(dlt) = 100 * [tex]\sqrt{2}[/tex]
б(dlt) = 100 * 1.4142
б(dlt) = 141.42 towels
Substitute in equation (1), Z = 2.05 for a service level of 98%
Average daily demand = 1,000 towels, Lead time = 2 days, б(dlt) = 141.42 towels to obtain
ROP = (1,000 * 2) + 2.05*141.42
ROP = 2,290 towels
b. Safety shock
The safety shock = Z * б(dlt)
Substitute the value of Z = 2.05 and б(dlt) = 141.42 towels to obtain
The safety shock = 2.05 * 141.42
The safety shock = 290 towels
Lewis Bros. currently has outstanding debt but has decided to issue additional debt for expansion purposes. The pretax cost of the new debt is best estimated at the ________ of the currently outstanding debt.
Answer: b. current yield to maturity
Explanation:
Interest rates charged on debt are primarily based on the risk of the borrower being able to pay back the debt. The higher the risk, the higher the interest rate charged.
The risk of not paying (default) back the debt is higher when the borrower already has existing debt. This is why in such instances, the interest on the new debt will be based on the yield to maturity (interest rate) of the existing debt so that the risk of default is adequately accounted for.
Causwell Company began 2018 with 27,000 units of inventory on hand. The cost of each unit was $5.00. During 2018 an additional 45,000 units were purchased at a single unit cost, and 37,000 units remained on hand at the end of 2018 (35,000 units, therefore, were sold during 2018). Causwell uses a periodic inventory system. Cost of goods sold for 2018, applying the average cost method, is $192.500. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.Required:1. Determine the cost of goods sold for 2018 using the FIFO method.2. Determine the cost of goods sold for 2018 using the LIFO method.
Answer:
Causwell Company
FIFO LIFO
Cost of goods sold $181,400 $203,000
Explanation:
Data and Calculations: Units Unit Cost Weighted FIFO LIFO
Beginning Inventory = 27,000 $5 $135,000 $135,000 $135,000
Purchases of inventory 45,000 $5.8 $261,000 $261,000 $261,000
Goods available 72,000 $396,000 $396,000 $396,000
Ending Inventory (37,000) $5.5 $203,500 $214,600 $193,000
Inventory Sold 35,000 $5.5 $192,500 $181,400 $203,000
Unit cost = $5.00
Computation of the Value of beginning inventory = $135,000 (27,000 x $5)
From the value of Inventory Sold (Cost of goods sold), determine the unit cost. This is applied to the ending inventory units, to ascertain its value. This value is added to the cost of goods sold, to determine the cost of goods available for sale, which is made up of the beginning inventory and purchases. From the Cost of Goods Available for Sale subtract the beginning inventory, to obtain the purchases in amount. Divide the value by units and you obtain the unit cost.
Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $320,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $828,000 at January 1, 2017. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2017. No goodwill resulted from Belden's share purchase.
Sheffield reported net income of $180,000 in 2017 and S230,000 of net income during 2018. Dividends of $70,000 and $80,000 are declared and paid in 2017 and 2018, respectively. Belden uses the equity method.
a. On its 2018 comparative income statements, how much income would Belden report for 2017 and 2018 in connection with the company's investment in Sheffield?
b. If Belden sells its entire investment in Sheffield on January 1, 2019, for S400,000 cash, what is the impact on Belden's income?
c. Assume that Belden sells inventory to Sheffield during 2017 and 2018 as follows:
Year Cost to Belden Price to Sheffield Year-End Balance (at Transfer Price)
2017 $29,700 $54,000 $18,000 (sold in following year)
2018 29,500 59,000 40,000 (sold in following year)
d. What amount of equity income should Belden recognize for the year 2018?
Answer:
Please answers below
Explanation:
1. a Equity income in 2017 = $49,525
b. Equity income in 2018 = $64,525
2. Gain on sale of investment = $10,950
3. Equity income in 2018 = $60,955
Kindly find attached breakdown of the answers above.
A company issued 800 shares of $4 par value preferred stock for $5 per share. What is true about the journal entry to record the issuance
Answer:
This question is incomplete. I tried looking for the full question but i could not find it.
However, I have provided the notes below to help you with important principles on the issuance of Par Value stated Preference Stock.
Notes :
It is important to remember that any amount paid in excess of par value when it comes to par value stated stocks is accounted for in a stock premium reserve.
Journal Entry to record issuance of preferred stock is :
Cash $4,000 (debit)
Preference Stock $3,200 (credit)
Paid In Excess of Par $800 (credit)
Thus, of the $5 , 1$ was paid in excess and the total to go in the reserve is $800.
Amazon.com, Inc., headquartered in Seattle, WA, started its electronic commerce business in 1995 and expanded rapidly. The following transactions occurred during a recent year (dollars in millions):
Issued stock for $6 cash.
Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account.
Paid $513 in principal and $91 in interest expense on long-term debt.
Earned $88,988 in sales revenue; collected $87,949 in cash with the customers owing the rest on account.
Incurred $10,766 in shipping expenses, all on credit.
Paid $28,241 cash on accounts owed to suppliers.
Incurred $4,332 in marketing expenses; paid cash.
Collected $620 in cash from customers paying on account.
Borrowed $6,359 in cash as long-term debt.
Used inventory costing $62,752 when sold to customers. Paid $177 in income tax recorded as an expense in the prior year.
For each of the transactions, indicate the effects (positive value for increase, negative value for decrease, and leave blank if no effect) on Income Statement and Balance Sheet.
Answer:
Please see below
Explanation:
1. Issue stock for $6 cash.
•Assets increase by $6
•Stockholder's equity increase by $6
2. Purchase equipment costing $6,320, paying $4,893 in cash and charging the rest on account
•Asset will increase by $6,320 (equipment)
•Assets decrease by $4,893 (cash)
•Hence net assets increase by $1,427
•Liabilities increase by $1,427 I.e The amount that was paid on account.
3. Paid $513 in principal and $91 in interest expense on long term debt
•Liabilities decrease by $604
4. Earned $88,988 in sales revenue;
Collected $87,949 in cash with the customers owing the rest on account
• Revenue increase by $88,988
• Assets increase by $87,949
5. Incurred $10,766 in shipping expenses, all on credit
• Expenses increases by $10,766
• Liabilities increases by $10,766
6. Paid $28,241 cash on accounts owned to suppliers
• Assets decrease by $28,241
• Liabilities decrease by $28,241
7. Incurred $4,332 in marketing expenses; paid cash
• Expenses increase by $4,332
• Assets decrease by $4,332
8. Collected $620 in cash from customers paying on account.
• Assets increase by $620
9. Borrowed $6,359 in cash as long term debt
• Assets increase by $6,359
• Liabilities increase by $6,359
10. Used inventory costing $62,752 when sold to customers
• Assets decrease by $62,752
11. Paid $177 in once tax recorded as an expense in the prior year
• liabilities decrease by $177
Businesses in the United States are governed by laws that provide rights to all citizens regardless of their race, color, religion, gender, or country of origin. The U.S. Constitution established three branches of government to ensure that no one group or individual could control all the power. The three branches—legislative, executive, and judicial—act as a system of checks and balances. The goal of this activity is to determine which branch of government regulates each human resource management issue. The three branches of government in the United States influence human resource management (HRM) practices such as recruitment, selection, compensation, and performance management. This activity is important because Individuals need to be aware of the legal system and legislation governing HRM practices in the workplace.
Match the brach of the Fedral goverment with the followings.
a. Retirement
b. Best Buy
c. Labor Relations
d. Affirmative Action
e. Ford
f. Education
g. Oil Pipeline
h. Starbucks
i. Equal Employment
1. Judicial Branch
2. Executive Branch
3. Legislative Branch
Answer:
Executive Branch: Affirmative Action, Oil Pipeline, Equal Employment
Judicial Branch: Labor Relations, Best Buy, Starbucks
Legislative Branch: Ford, Education, Retirement
A company understated its ending inventory balance by $4,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022?
Answer:
Cost of goods sold will be overstated by $4,000 in 2021.
Gross profit will be understated by $4,000 in 2022.
Explanation:
If ending inventory is underestimated, then the cost of goods sold would increase by same amount of underestimated inventory I.e $4,000.
However, since cost of goods would increase by $4,000 in 2021, the gross profit will be underestimated by $4,000 in 2022. This is because the overstatement of cost goods sold have eroded the extra profit that should have been added to the gross profit.
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is 0.4. The risk-free rate of return is 5%. The standard deviation of the returns on the optimal risky portfolio is :_______
a. 25.5%
b. 22.3%
c. 21.4%
d. 20.7%
Answer:
Option c (21.4%) is the right approach.
Explanation:
As we know.
wA and wB = weights of the securities SDA and SDB = standard deviations Cor(A,B) = correlation coefficient.On applying the formula:
⇒ [tex]SD \ Portfolio = [wA^2\times SDA^2+wB^2\times SDB^2+2\times wA\times wB\times SDA\times SDB\times Cor(A,B)]^{0.5}[/tex]
On substituting the values, we get
⇒ [tex](0.29^2\times 39^2+0.71^2\times 20^2+2\times 0.29\times 0.71\times 39\times 20\times 0.4)^{0.5}[/tex]
⇒ [tex]21.40 \ Percent[/tex] (%)
The City of Breukelen maintains a rapid transit system, which is accounted for in a proprietary fund called Breukelen RTS. Based on the following excerpt from the trial balance, prepare a statement of revenues, expenses, and changes in net position for the Breukelen RTS for the year ended December 31, 2019, using the appropriate format.
Revenues from fares $3,150,000
Train operating expenses 2,430,000
Track and train maintenance expenses 565,000
Depreciation 325,000
Investment income 50,000
Interest expense on long-term debt 320,000
Cash subsidy from the City of Breukelen 500,000
Net position, January 1, 2019 7,430,000
Answer:
The City of Breukelen
Breukelen RTS
Statement of revenues, expenses, and changes in net position
For the year ended December 31, 2019
Particulars Amount$ Amount$
Revenues
Operating Revenue 3,150,000
Operating Expenses
Train operating expenses 2,430,000
Track and maintenance expenses 565,000
Depreciation expenses 325,000
Total operating expenses 3,320,000
Operating loss (170,000)
Non-Operating revenue (Expenses)
Investment income 50,000
Interest expenses 320,000
Total Non-operating (expenses) (270,000)
Loss before transfer (440,000)
Transfer from City of B 500,000
Change in net assets 60,000
Total net position (beginning) 7,430,000
Total net position (ending) 7,490,000
helpp please 10 points!
2. What are Internal and external factors.
A company had the following assets and liabilities at the beginning and end of this year.
Assets Liabilities
Beginning of the year $ 109,500 $ 46,943
End of the year 169,000 68,445
a. Owner made no investments in the business, and no dividends were paid during the year.
b. Owner made no investments in the business, but dividends were $1,450 cash per month.
c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock.
d. Dividends were $1,450 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock.
Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases:
(Decreases in equity should be indicated with a minus sign.)
a. b. c. d.
Beginning of the year
Answer: Check attachment
Explanation:
Note that the beginning of the year equity was calculated as:
= 109500 - 46943
= 62557
Ending of the year equity was calculated as:
= 169000 - 68445
= 100555
Check attachment for further analysis
Self-disclosure is considered a major theme of interpersonal relations because
5. Problems and Applications Q5 In the 1990s and the first two decades of the 2000s, investors from the Asian economies of Japan and China made significant direct and portfolio investments in the United States. At the time, many Americans were unhappy that this investment was occurring. True or False: It was better for the United States not to receive this foreign investment because it shrank the capital stock. True False True or False: It's best for Americans that China and Japan, rather than Americans themselves, made the investment, so that Americans can have more to spend on consumption. True False
Answer:
False FalseExplanation:
The investment from China and Japan would have increased the capital stock because it would mean that there was more cash for investment products in the United States. It would be false therefore to say that the investments shrank capital stock.
On the other hand, it would have been best that Americans and not the Chinese or the Japanese made the investments because when investments yield returns, those returns are sent to the investors which in this case are in Japan and China which means that more money will be flowing out the United States.
a. If you will be making equal deposits into a retirement account for 20 years (with each payment at the end of the year), how much must you deposit each year if the account earns 8% compounded annually and you wish the account to grow to $5,000,000 after 40 years (in time 40)?
b. How does your answer to part (a) change if the account pays interest compounded monthly at an annual rate of 8%?
Answer:
A) we can use the future value of an annuity formula:
future value = annual contribution x FV annuity factor
future value = $5,000,000FV annuity factor, 8%, 40 periods = 259.05652annual contribution = $5,000,000 / 259.05652 = $19,300.81
B) we need to calculate the effective annual interest rate:
= (1 + 0.08/12)¹² - 1 = 8.3%
future value = annual contribution x FV annuity factor
future value = $5,000,000FV annuity factor, 8.3%, 40 periods = 280.40756annual contribution = $5,000,000 / 280.40756 = $17,831.19
your annual contribution will decrease by $1,469.62
Business-process outsourcing (BPO) is a type of outsourcing that consists of contracting operations and responsibilities of a specific business process (e.g.,human resources) to a third party service provider. Such outsourcing generally began with manufacturing firms outsourcing your supply chain but has grown into a much wider range of process, including marketing, finance, sales, and accounting. According to a recent Frobes articles, the revenue of the globe outsourced services Industry rose from 45 billion in 2000 to nearly 100,000,000,000 in 2012. Competition among firms in that BPO market is strong. Companies based in the United States include HP enterprise services, affiliated come to Peterson services, an automated data processing (ADP). A number of Indian companies, however, also provide worldwide BPO services, such as Infosys, Wipro, and Genpact. An article in business wk. suggested that BPL can save and users anywhere from 15 to 85%. International BPO service providers are particularly attractive says offshore labor I first an additional 25 to 30% cost savings. Furthermore, approximately 25% of the cost savings result from BPO firms proprietary products. The remaining 10% to 30% in cost reduction accrues from consolidated operations. Suppose you are the manager of a U.S.-based company and must decide whether to outsource your human resources department. Based on the above information and your study, please outline arguments supporting and opposing a decision to outsource this function of your business. Please explain from a purely business standpoint, any issues that might arise from contracting with an international-based versus U.S.-based BPO service firm? Explain.
Answer and Explanation:
A good number of problems usually arise with outsourcing from outside the country.
1. Different laws and regulations: this is one if not the greatest impediments to outsourcing staff for a business. The legal and tax implications of outsourcing to a different country creates the need to make sure business processes align with the legal frameworks or laws in these regions.
2. Language barriers: this aspect considers the challenges of communication when utilizing BPO services. There is the need for clear communication using US English from the example. Example outsourcing to an Asian country where English is somewhat a rarity.
3. There is also the need for increased data protection, privacy and security measures as there is more exposure to data breaches with this form of outsourcing.
4. However overall outsourcing makes available cheaper labour as well as more competent hands as is this case with US and China
The prepaid insurance account shows a debit of $6,336, representing the cost of a 2-year fire insurance policy dated August 1 of the current year. 2.
On November 1. Rent Revenue was credited for $1,809, representing revenue
from a subrental for a 3-month period beginning on that date.
3. Purchase of advertising materials for $767 during the year was
recorded in the Advertising Expense account.
On December 31. Advertising materials of $277 are on hand.
4. Interest of $714 has accrued on notes payable. The interest will
be paid in January of the next year.
Instructions:
Prepare the following in general journal form.
A) The adjusting entry for each item.
B) The reversing entry for each item where appropriate.
Answer and Explanation:
The Journal entries are shown below:-
1. Insurance Expense Dr, $1,320 ($6,336 ÷ 24 × 5)
To Prepaid Insurance $1,320
(Being insurance expense is recorded)
No Reversing Entry required
2. Rental Revenue $603 ($1,809 ÷ 3)
To Deferred Rental Revenue $603
(Being rental revenue is recorded)
Reversing entry in the next year will be:
Deferred Rental Revenue Dr, $603
To Rental Revenue $603
(Being deferred rental revenue is recorded)
3. Advertising Materials Inventory Dr, $277
To Advertising Expense $277
(Being advertising material inventory is recorded)
The reversing entry would be:
Advertising Expense Dr, $277
To Advertising Materials Inventory $277
(Being advertising expense is recorded)
4. Interest Receivable Dr, $714
To Interest Income $714
(Being interest receivable is recorded)
Interest income Dr, $714
To Interest receivable $714
(Being interest income is recorded)
Hokies uses the following accounts:
Accounts Payable
Equipment
Supplies
Rent Expense
Notes Payable
Salaries
Expense
Accounts
Receivable
Utilities
Expense
Service
Revenue
Retained
Required:
Indicate which accounts should be debited and which should be credited for the following transactions of Hokies companies.
1. Pay a cash dividend.
2. Pay rent in advance for the next three months.
3. Provide services to customers on account.
4. Purchase office supplies on account.
5. Pay salaries for the current month.
6. Issue common stock in exchange for cash.
7. Collect cash from customers for services provided in (3) above.
8. Borrow cash from the bank and sign a note.
9. Pay for the current month's utilities.
10. Pay for office supplies purchased in (4) above.
Answer:
Transaction Account Debited Account Credited
1. Pay a cash dividend. Dividends Cash
2. Pay rent in advance for the next Prepaid Rent Cash
three months.
3. Provide services to customers Accounts Receivables Service revenue
on account.
4. Purchase office supplies on Supplies Accounts receivables
account.
5. Pay salaries for the current Salaries Account Payables
month.
6. Issue common stock in Cash Common stock
exchange for cash.
7. Collect cash from customers for Cash Account Receivables
services provided in (3) above.
8. Borrow cash from the bank Cash Notes payable
and sign a note.
9. Pay for the current month's utilities. Utilities Cash
10. Pay for office supplies purchased Account payables Cash
in (4) above.
The following terms relate to the fundamental qualities of useful information. Match the key letter of the correct term with the descriptive statement below. a. Confirmatory value b. Faithful representation c. Neutral d. Timely e. Predictive value f. Verifiable g. Relevant 1. Providing information that is not biased toward one position or another. select a letter 2. Providing information before it loses its capacity to influence decisions. select a letter 3. Providing information that is proven to be free from error. select a letter 4. Providing information that would make a difference in a business decision. select a letter 5. Provide information that accurately depicts what really happened. select a letter 6. Providing information that confirms or corrects prior decisions.
Answer:
1. Providing information that is not biased toward one position or another.
c. NeutralAs an accountant, you cannot prepare, record or select information in order to favor someone's personal interests.
2. Providing information before it loses its capacity to influence decisions.
d. TimelyInformation must be available when it can influence future decisions. E.g. having a 2010 cost report today is useless if you are preparing next year's budget.
3. Providing information that is proven to be free from error.
b. Faithful representationFaithful representation means that information must be accurate, complete, neutral, and free from errors.
4. Providing information that would make a difference in a business decision.
g. RelevantRelevant information should be material and be either predictive or confirmatory.
5. Provide information that accurately depicts what really happened.
b. Faithful representationFaithful representation means that information must be accurate, complete, neutral, and free from errors.
6. Providing information that confirms or corrects prior decisions.
a. Confirmatory valueIt can be used to check, confirm or correct prior reports or evaluations.
The Johnson Materials Inc. has an EBIT of $3,500,000. Its Times Interest Earned (TIE) ratio is 5, Profit Margin is 16% and the tax rate is 35%. Costs of Goods Sold (COGS) is $6 million. Develop an income statement by filling in the blanks in the following table:
Sales = _________
COGS = 6000000
EBITDA =
Depreciation & amortization=
EBIT= 3500000
Interest Expense =
EBT =
Tax =
Net Income =
Answer and Explanation:
The computation of missing amounts is shown below:-
As we know that
Times Interest Earned Ratio = EBIT ÷ Interest Expense
So it can be write as
Interest Expense = EBIT ÷ Times Interest Earned Ratio
= $3,500,000 ÷ 5
= $700,000
Now
EBT is
= EBIT - Interest Expense
= $3,500,000 - $700,000
= $2,800,000
Now
Tax = 35% of EBT
= 0.35 × $2,800,000
= $980,000
After that
Net Income is
= Earning Before Tax - Tax
= $2,800,000 - 980,000
= $1,820,000
Also,
Profit Margin = Net Income ÷ Sales
So it can be written as
Sales = Net Income ÷ Profit Margin
= $1,820,000 ÷ 16%
= $11,375,000
And,
EBITDA = Sales - Cost of Goods Sold
= $11,375,000 - $6,000,000
= $5,375,000
Now
EBIT = EBITDA - Depreciation & Amortization
So, it can be written as
Depreciation & Amortization = EBITDA - EBIT
= $5,375,000 - $3,500,000
= $1,875,000
Tootsie Roll Industries is engaged in the manufacture and sale of candy. Major products include Tootsie Roll, Tootsie Roll Pops, Tootsie Pop Drops, Tootsie Flavor Rolls, Charms, and Blow-Pop lollipops. The following items were listed on Tootsie Roll's recent income statement and balance sheet. Mark each item from the balance sheet as an asset (A), liability (L), or shareholders' equity (SE) and each item from the income statement as a revenue (R) or expense (E).
a. Notes payable to banks
b. General and administrative
c. Accounts payable
d. Dividends payable
e. Retained earnings
f. Cash and cash equivalents
g. Accounts receivable
h. Provision for income taxes[1]
i. Cost of goods sold
Answer:
Matching the financial statement items to financial statement categories:
Financial Statement Items Financial statement
a. Notes payable to banks Liability (L)
b. General and administrative Expense (E)
c. Accounts payable Liability (L)
d. Dividends payable Liability (L)
e. Retained earnings Shareholders' equity (SE
f. Cash and cash equivalents Asset (A)
g. Accounts receivable Asset (A)
h. Provision for income taxes[1] Expense (E)
i. Cost of goods sold Expense (E)
SNC has its own, modest internet-based business. However, the company has been approached by Golden Years Nutraceuticals, a much larger online distributor of third-party brands with connections to a national healthcare website endorsed by a leading senior advocacy association. Therefore, Golden Years reaches a large-and increasing-consumer base of older Americans. This opportunity would generate an additional 10% increase in sales in 2016, followed by increases of 5% in 2017 and 3% in 2018. Increasing the percentage of SNC's business that is conducted online would decrease DSO, because internet sales are collected very quickly. Accounts receivable would decrease by 7 days in the first year and by an additional 3 days in 2017, for a total improvement of 10 days. In 2018, the DSO would decline by another 2 days-in effect, 12 days lower than at the start of 2016. Going forward, the DSO would stay at this lower level and SNC's profit margin would remain unchanged. What would you like to do about this opportunity?
Accept or Decline
2016 2017 2018 Post 2018
Incremental Summary Income Statement ($ in thousands)
Change in Sales $1,600 $2,480 $3,034 $3,034
Change in Cost of Sales $1,492 $2,313 $2,830 $2,830
Change in EBIT $108 $167 $204 $204
Incremental Balance Sheet ($ in thousands)
Change in Accounts Receivable $145 $241 $289 $289
Change in Inventories $368 $570 $698 $698
Change in Accounts Payable $162 $251 $307 $307
Please find question attached
Answer and Explanation:
Find full answer and explanation attached