Answer:
$30,000 unfavorable.
Explanation:
Calculation for what The direct labor efficiency variance for October was
Using this formula
Direct labor efficiency variance = (Standard hours for actual production - Actual hours) × Standard rate per hour
Let plug in the formula
Direct labor efficiency variance=(5,000 × 2 - $207,000 ÷ $18.00) × $20
Direct labor efficiency variance= (10000 - $11,500) × $20
Direct labor efficiency variance= $1,500 × $20
Direct labor efficiency variance= $30,000 unfavorable
Therefore The direct labor efficiency variance for October was $30,000 unfavorable
Bledsoe Company acquired $35,000 cash by issuing common stock on January 1, Year 1. During Year 1, Bledsoe earned $10,500 of revenue on account. The company collected $10,000 cash from customers in partial settlement of its accounts receivable and paid $7,400 cash for operating expenses. Based on this information alone, what was the impact on total assets during Year 1?
A. Total assets increased by $38.500.
B. Total assets increased by $1800.
C. Total assets increased by $30100.
D. Total asset did not change.
Answer:
Total Assets Increased by $38,100
Explanation:
Calculation for the impact on total assets during Year 1
Using this formula
Impact on total assets during Year 1=Cash+Revenue-Cash paid for operating expenses
Let plug in the formula
Impact on total assets during Year 1=$35,000+$10,500-$7,400
Impact on total assets during Year 1=$=38,100 increase
Therefore the impact on total assets during Year 1 is that the Total Assets will Increased by $38,100
Carlsbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $3 million at the end of 2019. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 4%. Assume that the company pays no dividends. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $
Answer:
Answer is explained and solved in the explanation section below.
Explanation:
Data Given:
First we need to clearly extract the data from the question.
Sales of the year = 5000000
Increase in Sales (%) = 20%
Profit Margin = 4%
Retention Ratio = 100%
Dividend Payout = 0
1. Increase in Assets necessary to support increase in Sales = Increase in Sales x total Assets = 20% x 3000000 = 600000
2. Increase in Liabilities necessary to support increase in Sales = Increase in Sales x Total Liabilities Accounts payable + Accrued Liabilities + other payables = 20% x 500000 = 100000
3. Net Income = 5000000 x (1 + 0.20) x 4% = 240,000
So Addition of Retained Earnings = 100% = 240,000
4. AFN = Increase in Assets - Increase in Liabilities - Increase in Retained Earnings = 600000 - 100000 - 240000 = 260000
Under this scenario, the company would have higher level of retained earnings which would reduce the amount of additional funds needed.
g Chelsea can either take a bus or drive to work. A bus pass costs $30 per week, whereas driving costs $70 per week (parking, tolls, gas, etc). A one-way trip to work lasts 24 minutes longer by bus than by car. She works 5 days a week and neither time spent driving nor riding the bus enters her utility directly. Will Chelsea take the bus or drive if her wage rate is $7
Answer:
If Chelsea takes the bus then it will take 24 minutes longer to reach the work. And since Chelsea works 5 days a week total extra minutes that will be spent while riding bus to work will be equal to
= 24 * 5
= 120 minutes
And 120 minutes is equivalent to = 120/60 = 2 hours.
So in terms of money, taking the wage rate of $7 total money that will be spent not working while taking the bus will be equal to
= Wage rate * Hours spent not working while taking the bus
= $7 * 2
= $14
So, total amount spent not working while taking the bus to work is equal to $14 per week.
And there is also a direct cost for taking the bus is equal to $30 per week.
So total cost associated by taking the bus = Cost of not working while taking the bus + Direct cost for taking the bus
= $14 + $30
= $44
So, total cost associated with taking the bus is equal to $44 per week while the cost for driving car to work is equal to $70 per week.
So, as you can see taking bus to work cost $44 week while taking car to work $70. Now we can clearly see that taking bus to work cost ($70 - $44) = $26.
So, Chelsea must take the bus to work since the cost of taking bus $26 less than the cost of taking car to work.
Pronghorn Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. PRONGHORN COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash $241,500 Accounts receivable (net) 351,500 Inventory (lower-of-average-cost-or-market) 412,500 Equity investments (marketable)-at cost (fair value $131,500) 151,500 Property, plant, and equipment Buildings (net) 581,500 Equipment (net) 171,500 Land held for future use 186,500 Intangible assets Goodwill 91,500 Cash surrender value of life insurance 101,500 Prepaid expenses 23,500 Current liabilities Accounts payable 146,500 Notes payable (due next year) 136,500 Pension obligation 93,500 Rent payable 60,500 Premium on bonds payable 64,500 Long-term liabilities Bonds payable 511,500 Stockholders’ equity Common stock, $1.00 par, authorized 400,000 shares, issued 301,500 301,500 Additional paid-in capital 171,500 Retained earnings ?
Bramble Corp. applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:
Estimated annual overhead cost $4100000
Actual annual overhead cost $4070000
Estimated machine hours 500000
Actual machine hours 495000
Answer:
$11,000 under applied
Explanation:
To compute the under or over applied overhead, we need to find out the predetermined overhead rate
Predetermined overhead rate = Total estimated manufacturing overhead ÷ Estimated machine hours
= $4,100,000 ÷ 500,000
= $8.2
Then, the overhead applied is;
= Actual machine hours × Predetermined overhead rate
= 495,000 × $8.2
= $4,059,000
Now, the under applied or over applied overhead is
= Actual annual overhead cost - Applied overhead
= $4,070,000 - $4,059,000
= $11,000 under applied
Which of the following is incorrect in terms of data warehousing and business intelligence? Group of answer choices Operational information is mainly current Does not include information from other operational applications Operational information frequently has quality issues Operational systems are integrated
Answer:
Operational systems are integrated.
Explanation:
A data warehouse can be defined as a large collection of data gathered or collected from various sources within an organization and managed to provide a guide for making decisions by the management.
This ultimately implies that, a data warehouse avails the management of an organization the ability to collect, analyze and manage data in order to gain meaningful insights and aid in the decision-making process.
In terms of data warehousing and business intelligence, the following statements are true and correct;
I. Does not include information from other operational applications.
II. Operational information is mainly current.
III. Operational information frequently has quality issues.
You're getting the idea that Julio's departure may negatively affect the employees' job attitudes. You're concerned about employee levels of job satisfaction, job involvement, organizational commitment, perceived organizational support, and employee engagement. What would you like to do on your first week as restaurant manager
Answer:
Consider conducting a comprehensive, anonymous poll of the employees to determine if they are happy in their current positions.
Explanation:
In the given scenario an employee Julio is leaving, and you feel this may affect the other employees attitude.
The best action to take when you are concerned with employee satisfaction is to conduct a comprehensive, anonymous poll of the employees to determine if they are happy in their current positions.
As the poll is anonymous this will encourage employees to respond honestly.
The information gained will give insight on level of employee satisfaction.
Measures can now be taken to ensure improvement in levels of job satisfaction, job involvement, organizational commitment, perceived organizational support, and employee engagement.
The Changing Workforce The composition of the modern labor force is changing rapidly. Increasing diversity in race, ethnicity, and gender, a shift in age distribution, and a shift in the skill levels required of the workforce have created new challenges for human resource professionals. It is critical for human resource managers to be aware of the changing trends in workforce composition because these trends will impact the organization's options for creating an internal labor force with the skills and motivation to help the organization gain a competitive advantage
Read the case below and answer the questions that follow Jennifer thought she had done a good job as her company's HR director in terms of forecasting employee needs, but there were clearly some trends that she had not anticipated. The most significant of these trends was the huge increase in the number of immigrants now living in the local community. Although these newcomers were willing and capable of performing many jobs in the company's plant, there were some definite issues with language and cultural differences.
Jennifer also sensed some reservation on the part of long-time employees toward accepting the newcomers. Jennifer now knows she needs to be proactive in preventing workforce issues and making the best use of this new group of potential employees. Which of the following is not a trend in the composition of the labor force impacting HRM practices today?
a. skills needed have shifted away from physical strength
b. older workers are staying in the workforce longer
c. younger workers between 16 and 24 will be fewer
d. asian and other groups are the fastest growing category
e. more women are in the pald labor force than in the past
Answer:
e. more women are in the paid labor force than in the past
Explanation:
The labor force is also known as the work force. It is defined as the labor pool that is either in the employment or the unemployed. It generally describes those people who are working for an organization.
The workforce today is changing and is different from the early days. The modern labor force is rapidly changing. There is a huge challenge for the HR professionals as there is increase in the diversity of race, gender, ethnicity , age distribution and the requirement of skills. Now-a-days more and more women are engaged in the paid labor force as compared to the early days. More women are learned and skilled and work under a paid labor force. They have shown success in many fields and are sometimes better performer than men.
Thus now more women are in the paid labor force when compared to the past.
Before any month-end adjustments are made, the net income of Russell Company is $37,000. However, the following adjustments are necessary: office supplies used, $3,060; services performed for clients but not yet recorded or collected, $2,940; interest accrued on a note payable to bank, $3,540. After adjusting entries are made for the items listed above, Russell Company's net income would be: Group of answer choices
Answer:
the net income would be $33,340
Explanation:
The computation of adjusted net income is shown below:
= Net income - office supplies used + service performed for clients - interest accrued to bank
- $37,000 - $3,060 + $2,940 - $3,540
= $33,340
Hence, the net income would be $33,340
The following errors took place in journalizing and posting transactions:
a. Cash of $8,800 received on account was recorded as a debit to Fees Earned and a credit to Cash.
b. A $1,760 purchase of supplies for cash was recorded as a debit to Supplies Expense and a credit to Accounts Payable.
Note: Prepare the entry to reverse the original entry first. Journalize the entries to correct the errors. If an amount box does not require an entry, leave it blank.
Solution :
a).
Cash account drawn $ 17600
To the fees earned is $ 8800
To the account receivable is $ 8800
(It is now rectified, being wrong entry made earlier)
b).
The accounts payable Dr 1760
To the supplies expenses is $ 1760
To supplies account Dr is 1760
Cash $ 1760
(It is now rectified, being wrong entry made earlier)
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you are in a 98 story building taking the elevator to the top from the bottom. Each story is 15 feet. The elevator travels at 20 miles per hour. There are 5,280 feet in a mile. How long do you have for your elevator pitch ?
Answer: 50 seconds
Explanation:
I took the test just now.
You are in a 98-story building taking the elevator to the top from the bottom. Each story is 15 feet. The elevator travels at 20 miles per hour. There are 5,280 feet in a mile. Around 50 seconds you can have for your elevator pitch.
What is an elevator pitch?An elevator pitch, elevator speech, or elevator statement is a short description of an idea, product, or company that explains the concept in a way such that any listener can understand it in a short period.
This description typically explains who the thing is for, what it does, why it is needed, and how it will get done. When explaining a person, the description generally explains one's skills and goals, and why they would be a productive and beneficial person to have on a team or within a company or project.
An elevator pitch does not have to include all of these components, but it usually does at least explain what the idea, product, company, or person is and their value.
Learn more about elevator, here:
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Verbal/linguistic learners prefer learning activities that involve reading, writing, and speaking.
False
True
Answer:
I would assume it is true
Explanation:
While attending a baseball game cheering for the home team a fan of the other team sneaks up behind jack and hits jack on the head with a hard piece of pretxel injuring jack. Jack has no ideas he is about to be hit an dis embarrassed when his friends see that he was injured by a pretzel. Which of the following torts has the fan committed?
a) assault and battery.
b) battery and negligent infliction of emotional distress.
c) battery.
d) assault.
e) assault, battery, and negligent infliction of emotional distress.
Answer:
C) Battery
Explanation:
From the question we are informed about an instance, While attending a baseball game cheering for the home team a fan of the other team sneaks up behind jack and hits jack on the head with a hard piece of pretxel injuring jack. Jack has no ideas he is about to be hit an dis embarrassed when his friends see that he was injured by a pretzel. In this case, The torts that the fan has committed is the battery. A tort as regards common law jurisdiction can be regarded as a civil wrong which make a claimant to count losses/ harm which resulted in legal liability on the part of the person that committed the tortious act. These could be invasion of privacy as well as injuries
State and federal governments actively support education at the primary, secondary, and collegiate levels. But they mandate education at the primary and secondary levels, while merely providing subsidies and loan guarantees at the collegiate level. Of the key rationales for public provision of education described, which do you think underpins this differential treatment?
Answer:
1. positive externalities
2. educational credit for the market failure
3. redistribution
4. failure to maximize the family utility
Explanation:
There are generally four rationales or logical thinking for the public provisions for education. They are the positive externalities, failure to maximize the family utility, educational credit for the market failure, redistribution.
Now each rationales provides reasons that educations is more likely to be underprovided without any intervention from the government. But many of them does not provide any reasons for the mandate of education.
Like suppose the government can support and solve any educational credit market failure by just offering some loan guarantees for the students while letting them chose to receive education or not.
Similarly government can also address positive externalities that are associated with productivity gains or just letting a person educated without any mandating it.
And finally, government redistributes the poor families through the progressive taxation or the offerings of free education without any mandating them.
December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions): 2021 2020 Accounts receivable (net) $ 20 $ 16 Net sales $ 115 $ 100 Cost of goods sold $ 60 $ 55 Net income $ 20 $ 17 Inventory turnover 5.22 Return on assets 10.3 % Equity multiplier 2.36 Dowling's 2021 profit margin is (rounded):
Answer:
17.40%
Explanation:
Profit margin = Net income / Net sales * 100
Profit margin = $20 million / $115 million * 100
Profit margin = 0.1739130 * 100
Profit margin = 17.3913%
Profit margin = 17.40%
So, Dowling's 2021 profit margin is 17.40%
Wildhorse Locomotive Corporation purchased for $604,000 a 40% interest in Lopez Railways, Inc. This investment enables Wildhorse Locomotive to exert significant influence over Lopez Railways. During the year, Lopez Railways earned net income of $159,000 and paid dividends of $27,000. Prepare ZaneLocomotive’s journal entries related to this investment.
Answer:
Dr Equity Investments $604,000
Cr Cash $604,000
Dr Equity Investments $63,600
Cr Investment Income $63,600
Dr Cash $10,800
Cr Equity Investments $10,800
Explanation:
Preparation of ZaneLocomotive’s journal entries related to this investment.
Dr Equity Investments $604,000
Cr Cash $604,000
(Being to record Investment)
Dr Equity Investments $63,600
Cr Investment Income $63,600
(40% × $159,000)
(Being to record share in net income)
Dr Cash $10,800
Cr Equity Investments $10,800
(40% × $27,000)
(Being to record shares in dividend)
What is the variable cost of sterilizing an instrument using the new equipment
After graduating from dental school two years ago, Dr. Lauren Farish purchased the dental practice of a long-time dentist who was retiring. In January of this year she had to replace the out-dated autoclave equipment she inherited from the previous dentist. Now as she is preparing her budget for next year, she is concerned about understanding how her cost for sterilizing her dental instruments has changed. She has gathered the following information from her records:
Month Number of instruments used Total autoclave cost
January 634 $7,466
February 534 6,526
March 734 7,148
April 934 9,028
May 834 7,744
June 1,034 8,596
July 1,234 10,009
August 1,134 9,924
What is the variable cost of sterilizing an instrument using the new equipment? (Round answer to 2 decimal places, e.g. 15.25.)
Variable cost _____ $ per instrument
What is the fixed cost of the autoclave equipment? (Round answer to 0 decimal places, e.g. 5,275.)
Fixed cost $ ________
What is the cost formula that Dr. Farish should use for estimating autoclave sterilization costs for next year
Answer:
Results are below.
Explanation:
Giving the following information:
Month Number of instruments used Total autoclave cost
January 634 $7,466
February 534 6,526
March 734 7,148
April 934 9,028
May 834 7,744
June 1,034 8,596
July 1,234 10,009
August 1,134 9,924
To determine the fixed and variable cost, we need to use the high-low method:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (10,009 - 6,526) / (1,234 - 534 )
Variable cost per unit= $4.9757 per unit
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 10,009 - (4.9757*1,234)
Fixed costs= $3,869
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 6,526 - (4.9757*534)
Fixed costs= $3,869
Total cost= 3,869 + 4.9757x
x= number of instruments
I don’t know what the percentages are for each one
Answer:
thats correct
Explanation:
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $890,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Years Amount
1-6 $ 89,000
7 79,000
8 69,000
9 59,000
10 49,000
If purchased, the restaurant would be held for 10 years and then sold for an estimated $790,000.
Required:
Determine the present value, assuming that John desires an 11% rate of return on this investment. (Assume that all cash flows occur at the end of the year.) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
Answer and Explanation:
The computation of the present value is as follows:
Years Value Factor at 11% Present value
1-6 $89,000 4.2305 $376,515
7 $79,000 0.4817 $38,054
8 $69,000 0.4339 $29,939
9 $59,000 0.3909 $23,063
10 $49,000 0.3522 $17,258
10 $790,000 0.3522 $278,238
Present value $763,067
it should be rejected as it less than the initial investment
The following information is available for Trinkle Company for the month of June:
a. The unadjusted balance per the bank statement on June 30 was $56,037.
b. Deposits in transit on June 30 were $2,215.
c. A debit memo was included with the bank statement for a service charge of $11. A $5,281 check written in June had not been paid by the bank.
d. The bank statement included a $950 credit memo for the collection of a note. The principal of the note was $920, and the interest collected amounted to $30.
Required:
Determine the true cash balance as of June 30.
Answer:
$52,971
Explanation:
To arrive at the true cash balance, we use the Bank Reconciliation Statement.
The Bank Reconciliation Statement adjusts the Bank Statement amount with items that are recorded in the Cash Book but not in the Bank Statement.
These include Deposits in transit and Payments already made in Cash Book.
Bank Reconciliation Statement
Balance as per Bank Statement $56,037
Add Outstanding Lodgements $2,215
Less Unpresented Checks ($5,281)
Balance as per Cash Book $52,971
Conclusion :
Thus, the true cash balance as of June 30 is $52,971
Jake Fleming sells graphic card update kits for computers. Jake purchases these kits for $20 and sells about 250 kits a year. Each time Jake places an order, it costs him $25 to cover shipping and paperwork. Jake figures that the cost of holding an update kit in inventory is about $3.50 per kit per year. What is the economic order quantity
Answer:
60 Kits
Explanation:
Cost price (C) = $20/Kit
Yearly se (D) = 250 kit/year
Shipping cost / Ordering cost (Co) = $25
Holding cost (Ch) = $3.5/Kit-year
Economic order quantity = √2.D.Co / Ch
Economic order quantity = √2*250*25/3.5
Economic order quantity = √12500/3.5
Economic order quantity = √3571.4285
Economic order quantity = 59.7614305
Economic order quantity = 60 Kits
Wade Company estimates that it will produce 6,800 units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $8, direct labor $13, and overhead $17. Monthly budgeted fixed manufacturing overhead costs are $8,300 for depreciation and $3,500 for supervision. In the current month, Wade actually produced 7,300 units and incurred the following costs: direct materials $51,800, direct labor $87,400, variable overhead $124,400, depreciation $8,300, and supervision $3,780.
Prepare a static budget report. Hint: The Budget column is based on estimated production while the Actual column is the actual cost incurred during the period. (List variable costs before fixed costs.) Wade Company Static Budget Report Difference Favorable Neither Favorable Budget Actual nor Unfavorable Were costs controlled?
Answer:
Wade Company
Static Budget Report
Budget Actual Variance
Units of production 6,800 7,300 500 Favorable
Variable manufacturing costs:
Direct materials $54,400 $51,800 $2,600 Favorable
Direct labor 88,400 87,400 1,000 Favorable
Overhead 115,600 124,400 (8,800) Unfavorable
Sub-Total $258,400 263,600 ($5,200) Unfavorable
Fixed manufacturing costs:
Depreciation $8,300 $8,300 $0 Neither
Supervision 3,500 3,780 (280) Unfavorable
Sub-Total $11,800 $12,080 ($280) Unfavorable
Total $270,200 $275,680 ($5,480) Unfavorable
Some costs were controlled (direct materials and labor). The overhead costs were not very well controlled.
Explanation:
a) Data and Calculations:
Estimated units of production of product IOA = 6,800 units
Budgeted variable manufacturing costs:
Direct materials $8 * 6,800 = $54,400
Direct labor $13 * 6,800 = $88,400
Overhead $17 * 6,800 = $115,600
Total= $38
Budgeted fixed manufacturing overhead costs:
Depreciation = $8,300
Supervision = 3,500
Total = $11,800
Actual:
Units produced = 7,300
Direct materials cost = $51,800
Direct labor cost = $87,400
Variable overhead = $124,400
fixed manufacturing overhead costs:
Depreciation = $8,300
Supervision = 3,780
Total = $12,080
Tom is comparing two printers for his small business. The purchase price for Printer A is $1,000, with maintenance and operations costs of $400. Printer B increases productivity by $100, and reduces the maintenance and operations costs by half. The expected lifetime value is one year for both printers. What is the economic value to the customer (EVC) of Printer B
Answer:
EVC = $1300
Explanation:
In this question, we need to find the economic value to the customer (EVC) of Printer B.
First of all we need to know the basics of Economic value of a product,
It is basically starts with evaluating the additional values of the product first which are associated with it and then, those values are added to the next best product in the market. In this case, Printer A is the next best product whose price is $1000.
We know that, Printer B increase productivity by $100
Reduce the maintenance and operations costs by half, which means $400/2 = $200.
Additional value of the product = $100 + $200
Cost of the next best product = $1000
So,
According to the EVC definition and understandings, we must add the additional values of the product to value of the next best product.
Hence,
EVC = $1000 + $100 + $200
EVC = $1300
Question 2 (5 points)
(01.07 MC)
How do we know our current money has value? (5 points)
а
People talk about money a lot.
Ob
It is backed by gold.
Ос. .
People accept it in exchange for goods or services,
od
It has many security measures.
Answer:
It's C
Explanation:
a and d are kind of a result of C but C is still correct
we no longer back our money with gold
Larry is considering two investment strategies. The first strategy involves putting all of his available funds in Project X. If Project X succeeds, he will receive a $10,000 return, and if it fails, he will suffer a $2,000 loss. There is a 70% chance Project X will succeed and a 30% chance it will fail.
The second strategy involves diversification: investing half of his funds in Project X and half of his funds in Project Y (which has the same payoff structure as Project X).
If both projects succeed, he will receive a $5,000 return from Project X and a $5,000 return from Project Y, for a net gain of $10,000.
If both projects fail, he will suffer a $1,000 loss on Project X and a $1,000 loss on Project Y, for a net loss of $2,000.
If one project succeeds and one fails, he will receive a $5,000 return from the successful project and will suffer a $1,000 loss on the failed project, for a net gain of $4,000.
As with Project X, there is a 70% chance that Project Y will succeed and a 30% chance that it will fail. Assume that the outcomes of Project X and Project Y are independent. That is, the success or failure of Project X has nothing to do with the success or failure of Project Y.
The expected payoff from the first strategy (investing everything in Project X) is :__________
Answer: $6,400
Explanation:
The expected return is simply a weighted average of the different returns given their probability of happening.
If everything was invested in Project X, there is a 70% chance of success and 30% of failure. Payoff is $10,000 if successful and $2,000 if unsuccessful:
= (70% * 10,000) + ( 30% * -2,000)
= 7,000 - 600
= $6,400
When the economy is doing well, the financial market is also guaranteed to do well.
True
False
ABC Co. had 600,000 shares of Common Stock, 40,000 shares of Convertible Preferred Stock, and $3,000,000 of 6% Convertible Bonds outstanding during 2021. The Convertible Preferred Stock is convertible into 80,000 shares of Common Stock. During 2021, ABC Co. paid dividends of $4 per share on the Common Stock and $3 per share on the Convertible Preferred Stock. Each $1,000 Convertible Bond is convertible into 80 shares of Common Stock. The Net Income for 2021 was $1,600,000 and the income tax rate was 30%.
Calculate basic earning per year of common stock for the year ended January1 31, 2104.
If company's preferred stock were convertiable into common stock what additional calculation would be required?
Answer:
a. Net income for 2021 $1,600,000
Less: Preferred dividends $120,000 (40000*$3)
Net income for Common Stockholders $1,480,000
Divide by Common Shares outstanding 600,000
Basic Earnings per share for 2021 $2.47
b. If company's preferred stock were convertible into common stock, diluted earnings per shares will also have to be calculated.
Whitch of the following is required to be considered an entrepreneur?
Answer:
An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures
Explanation:
Sales (8,700 units) $ 269,700 $ 31.00 Variable expenses 174,000 20.00 Contribution margin 95,700 $ 11.00 Fixed expenses 54,100 Net operating income $ 41,600 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units
Answer:
Missing word "Required: Prepare a new contribution format Income Statement under each of the following conditions (consider each case independently): 1. The sale volume increases by 90 units. 2. The sales volume decreases by 90 units"
a. Contribution Income Statement
Total Per unit
Sales (8,790 units) $272,490 $31.00
Variable Expenses $175,800 $20.00
Contribution Margin $96,690 $11.00
Fixed Expenses $54,100
Net Operating Income $42,590
b. Contribution Income Statement
Total Per unit
Sales (8,610 units) $266,910 $31.00
Variable Expenses $172,200 $20.00
Contribution Margin $94,710 $11.00
Fixed Expenses $54,100
Net Operating Income $40,610