Merline Manufacturing makes its product for $60 per unit and sells it for $142 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows.


MERLINE MANUFACTURING Income Statement For Month Ended December 31, 2017

Sales $1,420,000
Cost of goods sold 600,000
Gross profit 820,000
Operating expenses Sales commissions (10%) 142,000
Advertising 224,000
Store rent 25,200
Administrative salaries 46,000
Depreciation—Office equipment 56,000
Other expenses 13,200
Total expenses 506,400
Net income $313,600

Management expects December’s results to be repeated in January, February, and March of 2018 without any changes in strategy. Management, however, has an alternative plan. It believes that unit sales will increase at a rate of 10% each month for the next three months (beginning with January) if the item's selling price is reduced to $127 per unit and advertising expenses are increased by 15% and remain at that level for all three months. The cost of its product will remain at $60 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same.

Required:
Prepare budgeted income statements for each of the months of January, February, and March that show the expected results from implementing the proposed changes. (Enter your final answers in whole dollars.)

Answers

Answer 1

Answer:

Merline Manufacturing

MERLINE MANUFACTURING Budgeted Income Statement For Months of January, February, and March, 2017

                                       December       January       February        March

Sales                             $1,420,000     $1,397,000  $1,536,700  $1,690,370

Cost of goods sold          600,000         660,000       726,000      798,600

Gross profit                      820,000        $737,000     $810,000     $891,770

Operating expenses:

Sales commissions (10%) 142,000           139,700        153,670      169,037

Advertising                      224,000          257,600        257,600      257,600

Store rent                          25,200            25,200         25,200       25,200

Administrative salaries     46,000            46,000         46,000       46,000  

Depreciation—

Office equipment             56,000           56,000          56,000       56,000

Other expenses                13,200            13,200           13,200        13,200

Total expenses              506,400         537,700         551,670      567,037

Net income                   $313,600      $199,300      $258,330    $324,733

Explanation:

a) Data:

MERLINE MANUFACTURING Income Statement For Month Ended December 31, 2017

                                                     December  

Sales                                          $1,420,000

Cost of goods sold                       600,000

Gross profit                                   820,000

Operating expenses:

Sales commissions (10%)             142,000

Advertising                                  224,000

Store rent                                      25,200

Administrative salaries                 46,000

Depreciation—Office equipment 56,000

Other expenses                            13,200

Total expenses                          506,400

Net income                               $313,600

b) Calculations:

Sales:

January = $1,420,000/$142 x 1.1 x $127 = $1,397,000

Sales unit = 11,000 (10,000 x 1.1)

February = 11,000 x 1.1 x $127 = $1,536,700

Sales unit = 12,100 (11,000 x 1.1)

March = 12,100 x 1.1 x $127 = $1,690,370

Sales unit = 13,310 12,100 x 1.1)

c) Advertising = $224,000 x 1.15 = $257,600

d) Cost of goods sold:

January = $660,000 (11,000 x $60)

February = $726,000 (12,100 x $60)

March = $798,600 (13,310 x $60)

e) Sales commission for each month is 10% of sales for the month.

f) Budgeted income statements are summaries for a period based on estimated incomes and expenses.  They are useful in helping management to make projections and production decisions that will achieve desired outcomes.  From these budgeted statements, management may decide to retain the December selling price and units and not increase advertising costs since the achieved net income did not improve over December's performance until March.


Related Questions

The following General Fund information is available for the preparation of the financial statements for the City of Eastern Shores for the year ended September 30, 2017:
Revenues:
Property taxes $ 27,025,000
Sales taxes 13,323,000
Fees and fines 1,332,000
Licenses and permits 1,730,000
Intergovernmental 2,375,000
Investment earnings 661,000
Expenditures:
Current:
General government 11,731,000
Public safety 24,451,000
Public works 6,219,000
Health and sanitation 1,171,000
Culture and recreation 2,163,000
Transfer to capital project fund 1,127,000
Special item—proceeds from sale of land 831,000
Fund balance, October 1, 2016 1,819,000
From the information given above, prepare a General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the City of Eastern Shores General Fund for the year ended September 30, 2017. (Deductions should be entered with a minus sign.)

Answers

Answer:

                                    City of Eastern Shores

          General Fund Statement of Revenues, Expenditures and

                    Changes in Fund Balances for the year ended

                                     September 30, 2017.

Particulars                     Amount($)                    Amount($)

Revenues  

Property Taxes            27,025,000  

Sales Taxes                  13,323,000  

Fees and Fines             1,332,000  

Licenses and Permits   1,730,000  

Inter Governmental      2,375,000  

Investment Earnings     661,000

Total Revenues           $46,446,000                 $46,446,000

Expenditures  

Current  

General Government     11,731,000  

Public Safety                  24.451,000  

Public Works                  6,219,000  

Health and Sanitation    1,171,000  

Culture and Recreation  2,163,000

Total Expenditures        $45,735,000                - $45,735,000

Excess of Revenue over Expenditure                      $711,000

Less : Transfer to capital project fund                     -$1,127,000

Add : Special Item - Proceeds from Sale of Land     $831,000

Net Change in Fund Balance                                     $415,000

Add : Fund Balance, Oct. 1, 2017                               $1,819,000

Fund Balance, Sep. 30, 2017                                   $2,234,000

From 1991 to​ 2000, the U.S. economy had an annual inflation rate of around 2.76​%. The historical annual nominal​ risk-free rate for this same period was around 5.71​%. Using the approximate nominal interest rate equation and the true nominal interest rate​ equation, compute the real interest rate for that decade. What is the estimated real interest rate using the approximate nominal interest rate equation for that​ decade?

Answers

Answer:

2.95% and 2.87%

Explanation:

The computation of the approximate real rate and the estimated real interest rate is shown below:

The Approximate real rate is

= Historic annual nominal risk free rate - Annual inflation rate

= 5.71% - 2.76%

= 2.95%

And, the estimated real interest rate is

= (1 + historical annual nominal risk free rate) ÷ (1 + annual inflation rate) - 1

= (1 + 0.0571) ÷ (1 + 0.0276) - 1

= 2.87%

We simply applied the above formulas so that each one could be determined

Angela has an annual contract with Stenbach Service Centre to provide property maintenance services; this includes lawn care, snow removal and parking lot maintenance. Angela spends, on average, 20 hours per week working at the company’s premises and is paid a flat amount monthly. She hires part-time workers, when necessary, to assist her. Angela does not have any other clients.

Angela uses her own small tools; however the company supplies and maintains a riding lawn mower and a snow plow for her use. Her contact at the company is Chris Moore, the Facilities Manager, who meets with her every Monday to discuss the work to be done that week. Chris approves Angela’s monthly invoices and submits them to Accounts Payable.

Does Angela have a contract of service or a contract for service with Stenbach Service Centre As the company’s Payroll Supervisor, explain to Chris the process and factors you used to make your decision.

Answers

Answer:

Angela and Stenbach Service Centre

Contract for Service and Contract of Service:

1. Angela has a contract for service.

2. Factors used to decide whether a contract is for service or of service:

a) Employment terms are slightly different from business contract terms.

b) Employees are paid Wages and Salaries, while contractors are paid fees.

c) Employees do not submit monthly invoices for payment, but contractors do.

d) Angela fills tax forms for herself and remits the taxes, so she is self-accounting with respect to her income taxes, unless withholding taxes like Sales taxes.  An employee's income tax is deducted from her salary before payment and the company remits the taxes to the IRS.

Explanation:

The agreement between Angela, a self-employed individual, and Stenbach Service Centre is a contract for service.   A contract of service is an employment contract between Stenbach Service Centre, the employer, and the Payables Supervisor, an employee, for example.  Essentially, Angela can be described as an outsourcer for services vendor or service provider to Stenbach Service Centre, an outsourcer of service company.  Angela is engaged for a fee to carry out property maintenance services, including lawn care, snow removal, and parking lot maintenance.  She is an independent contractor with Stenbach.  She does not need to work on any day and she can subcontract her work by hiring others to help her discharge the service.  An employee, like Chris, cannot hire another person to discharge his responsibilities and must work on designed days.

Another important difference is that Angela submits monthly invoices for actual work done.  An employee does not have to submit an invoice in order to be paid for work done.  Angela's invoices will not be of the same amount from one month to the other, unlike Chris' whose salary pay sheet may be static in amount from month to month.  

Emmitt had the following final balances after the first year of operations: assets, $55,000; stockholders' equity, $25,000; dividends, $3,000; and net income, $10,000. What is the amount of Emmitt's liabilities

Answers

Answer:

$30,000

Explanation:

Calculation for Emmitt amount of liabilities

Using this formula

Liabilities =Assets -Stockholders's equity

Let plug in the formula

Liabilities =$55,000-$30,000

Liabilities =$30,000

Therefore the amount of Emmitt liabilities will be $30,000

If Takeoff withdraws a $100 bill from his checking account and Quavo deposits another $100 bill in his saving account how much will M1 and M2 change

Answers

Answer:

M2 Will be unchanged

while M1 will decrease by $100

Explanation:

M1 will be the cash and coins + checking account + traveler check (it is consideread near-money)

Takeoff Transactions is whitin the M1  metric. Quavo transactions is not included thus, M1 decrease by 100

While M2 includes M1 and it adds the saving deposits thereofre, Quavo operation is included in this concept so we get:

-200 from takoff + 100 from Quavo = zero

No change arise from the combination of this transactions.

In the mid 1980s, what emerging product market did a major foreign competitor capitalized on and Kodak miss due to a poor understanding of the company's core competency

Answers

Answer:

Kodak missed the digital camera revolution that it started.

Explanation:

According to history, Kodak's Steve Sasson was the first to invent a digital camera prototype in 1975.

But, Kodak relied on its past successes to the extent that it could not see beyond its shoulders.  Kodak spotted digital technology opportunity in its business, but it lacked the foresight to sharpen its core competency so that it could redefine the market and its business from a film producing and selling company to one that gives consumers the opportunity to share images online.  It lacked the competency to understand the emerging needs of its customers and woefully failed to invest rightly in digital technology.

On the other hand, Fuji created new opportunities for itself that were related to its core business by branching into magnetic tape optics, videotape, copiers, and office automation.  As a result, it overtook Kodak in market share while Kodak submerged into bankruptcy, from which it later emerged stronger better than it was before the bankruptcy but smaller.

Choose three distinct but related business functions (e.g., inventory control, purchasing, payroll, accounting, etc.). Write a short paper describing how interfacing the information systems of these three functions can improve an organization’s performance.

Answers

Answer:

The three functions can be described as follows:

i) Inventory control

ii)  Procurement

iii) Sales

Explanation:

Following are the description of the given points:

In point (i):

It is also the center of the operational activities, in which it would be accountable to always get rid of a perfect product inventory and thus not have an untouched inventory in the storage facility.

In point (ii):

This is the first step for just a brand until it hits the end user. It is sourcing, which most appropriate and progressed necessity for both the manufacturing of the company.  

In point (iii):

For the business, it primarily provides, a large number of alternative considerations. However, certain expenses it control, including the expense of keeping as well as the wastefulness in raw resources, all will be determined from selling price.

Maurer, inc.,has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If yoy require a return of 10 percent on the company's stock, how much will you pay for a share today?

Answers

Answer:

Price of stock = $44.05

Explanation:

The price of a share can be calculated using the dividend valuation model  

According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.  

To determine the price of the stock to , we calculate the present value for each of the dividend payable for the next five years and then sum them.

The formula below would help

PV = G× (1+r)^(-n)

PV = Present Value, r  required rate of return - 10%, n- the year, G- dividend payable in a particular year

Year                             PV of dividend

1            2+6 ×× 1.1^-1  = 7.27

2           10 ×   1.1^-2 = 8.26

3           12× 1.1^-3    = 9.02

4           14 × 1.1^-4   =9.56

5          16 × 1.1^-5     = 9.93

Total Present Value of dividend = 7.27 + 8.26  +9.02  +9.56  +9.93  = 44.05

Price of stock = $44.05

 

 

 

Maurer, inc.,has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If yoy require a return of 10 percent on the company's stock, how much will you pay for a share today?

Answer:

Price of stock = $44.05

Explanation:

The price of a share can be calculated using the dividend valuation model  

According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.  

To determine the price of the stock to , we calculate the present value for each of the dividend payable for the next five years and then sum them.

The formula below would help

PV = G× (1+r)^(-n)

PV = Present Value, r  required rate of return - 10%, n- the year, G- dividend payable in a particular year

Year                             PV of dividend

1            2+6 ×× 1.1^-1  = 7.27

2           10 ×   1.1^-2 = 8.26

3           12× 1.1^-3    = 9.02

4           14 × 1.1^-4   =9.56

5          16 × 1.1^-5     = 9.93

Total Present Value of dividend = 7.27 + 8.26  +9.02  +9.56  +9.93  = 44.05

Price of stock = $44.05

 

 

 

In 2008, the United States began to witness one of the worst recessions since the 1930s. The collapse of the housing bubble in 2006 led to a massive decline in real estate prices, affecting consumers and institutions, especially banking and financial entities. Severe liquidity shortfalls in the United States as well as other global markets led to a serious credit crisis. During the credit crisis of 2008–2009, several banks and other businesses went through a reorganization process or were forced to liquidate. Consider the following example:________.
In January 2009, American electronics retailer Circuit City Inc. closed all of its stores and sold all of its merchandise.
The above is an example of:______.
A. Reorganization
B. Liquidation.

Answers

Answer:

B. Liquidation.

Explanation:

Liquidation is and aftermath of the inability of a company or establishment to meet up with her obligations at the required moment. Thus, the company folds-up, lay off her staff and stop operating. While reorganization is a form of restructuring in a company or establishment. It may involve change of positions and duties among capable staff.

The example in the given scenario is that of liquidation because it ceased from operation.

The country of Morson has decided to privatize the state-owned cable television company. How can the country help this newly privatized industry succeed

Answers

Answer:

Government Support

Explanation:

Privatization is better for a country. It minimizes the monopoly and encourages healthy competition. Increased competition in the business world is good. There can be variety of services available to the consumers. Government should support privatization by introducing schemes of interest free loan for investors. There will be large number of firms that might want to enter business world but the money is not available to them for startup.

Mary buys an annuity that promises to pay her $1,500 at the end of each of the next 20 years. The appropriate interest rate is 7.5%. What is the value of this 20-year annuity today?

Answers

Answer:

PV= $15,291.74

Explanation:

Giving the following information:

Annual cash flow= $1,5000

Number of years= 20

Interest rate= 7.5%

To calculate the present value, first, we need to determine the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {1,500*[(1.075^20) - 1]} / 0.075

FV= $64,957.02

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 64,957.02/(1.075^20)

PV= $15,291.74

Multiple Product Performance Report Storage Products manufactures two models of DVD storage cases: regular and deluxe. Presented is standard cost information for each model:
Cost Components Regular Deluxe
Direct materials
Lumber 2 board feet × $3 = $6.00 3 board feet × $3 = $9.00
Assembly kit = 2.00 = 2.00
Direct labor 1 hour × $4 = 4.00 1.25 hours × $4 = 5.00
Variable overhead 1 labor hr. × $2 = 2.00 1.25 labor hrs. × $2 = 2.50
Total $14.00 $18.50
Budgeted fixed manufacturing overhead is $13,000 per month. During July, the company produced 5,000 regular and 2,000 deluxe storage cases while incurring the following manufacturing costs:
Direct materials $70,000
Direct labor 31,000
Variable overhead 11,500
Fixed overhead 15,500
Total $128,000
Prepare a flexible budget performance report for the July manufacturing activities.

Answers

Answer:

Flexible budget performance report for the July manufacturing activities

Direct Materials :                                         $62,000

Lumber :

Regular ($6.00 × 5,000) $30,000

Deluxe ($9.00 × 2,000) $18,000

Assembly kit :

Regular ($2.00 × 5,000) $10,000

Deluxe ($2.00 × 2,000) $4,000

Labor :                                                            $30,000

Regular ($4.00 × 5,000) $20,000

Deluxe ($5.00 × 2,000) $10,000

Variable overhead :                                      $15,000

Regular ($2.00 × 5,000)  $10,000

Deluxe ($2.50 × 2,000)   $5,000

Fixed manufacturing overhead                  $13,000

Total                                                             $120,000

Explanation:

A Flexed Budget is a Master budget that has been adjusted to reflect the Actual Level of Operation.

1. Suppose the Kenyan shilling (KS) is currently traded at KS 1.4/$.The Ethiopian Birr (EB) is traded at E B1.39/$.Ignoring transaction costs: A. Determine the KS/EB exchange rate consistent with these direct quotations

Answers

Answer:

The answer is KS 1.01/EB.

Explanation:

This is an example of a cross rate.

Cross rate refers to an exchange rate between two currencies that is calculated based on the exchange rate of each of the two currencies to a third currency.

For this question, the cross rate KS/EB will be estimated by reference the US dollar which is third currency. This can be calculated by simply dividing the KS 1.4/$ by the E B1.39/$ as follows:

KS/EB = 1.4 / 1.39 = 1.01

That is, the answer is KS 1.01/EB.

Ray’s Radios believed the synergies between radio production and battery production could be realized if he expanded. However, due to overseeing the battery expansion Ray devoted less time to the radio business leading to the radio unit costs increasing. At this point, Ray’s Radios should

Answers

Answer:

C. ​Shut down the production of the batteries

Explanation:

Since in the question it is mentioned that The Ray trust that the synergies between the radio production and the battery production is realized when it is expanded but by due to overseeing it ray spend less time to the radio business.

As from the above information provided first of all its trust is not be pratical. nor he search for an expansion he should more concentrate on the radio production as it is the main product

Answer:

a

Explanation:

On October 1, 2017, Waterway, Inc. assigns $1,160,700 of its accounts receivable to Wildhorse National Bank as collateral for a $747,900 note. The bank assesses a finance charge of 3% of the receivables assigned and interest on the note of 9%. Prepare the October 1 journal entries for both Waterway and Wildhorse.

Answers

Answer:

                                             Waterway, Inc.

        General Journal                            Debit            Credit

Cash                                                      $713,079

Interest Expense ($1,160,700 * 3%)     $34,821  

Notes Payable                                                          $747,900

                                     Wildhorse National Bank

        General Journal                            Debit            Credit

Notes Receivable                                  $747,900

Cash                                                                           $713,079

Interest Revenue ($1,160,700 * 3%)                          $34,821

Use the information provided below to answer the following question (same for set of 5 questions). Nash began April with accounts receivable of $49,000 and a credit balance in Allowance for Uncollectible Accounts of $1,000. They made $500,000 in credit sales (sales on account) during April. Collections from customers totaled $493,003. One customer, frank Jones, could not pay his $1, 200 account receivable. On April 7, he negotiated to exchange his past-due account for a $1, 200, 4%, 90-day note receivable. Historically, 1% of credit sales have prove uncollectible. During April, 3375 of old accounts receivable were written off as uncollectible.
The necessary adjusting entry at April 30 would include:
a) Debit to Interest Receivable, $11, 84
b) Credit to Interest Payable, $48.00
c) Debit to Note Receivable, $3.02
d) Credit to Interest Revenue, $3.02
e) Both C and D.

Answers

Answer:

d) Credit to Interest Revenue, $3.02

Explanation:

beginning balance of accounts receivable $49,000

allowance for doubtful accounts $1,000

net credit sales $500,000

collections on accounts receivable $493,003

$6,997

Frank Jones:

Dr Notes receivable 1,200

    Cr Accounts receivable 1,200

Write offs:

Dr Allowance for doubtful accounts 3,375

    Cr Accounts receivable 3,375

the adjusting entry in this question refers to the notes payable from frank Jones:

we must determine the interest revenue for the month of April = $1,200 x 0.04 x (23 days/365 days) = $3.02

the journal entry should be:

April 30, accrued interest from notes receivable

Dr Interest receivable 3.02

    Cr Interest revenue 3.02 ⇒ OPTION D

Pell Corporation is a company that manufactures computers. Assume that Pell: allocates manufacturing overhead based on machine hours estimated 9,000 machine hours and $ 90, 000 of manufacturing overhead costs actually used 15,000 machine hours and incurred the following actual costs: (click the icon to view the actual costs.) The company allocated manufacturing overhead of $150, 000 using a predetermined overhead rate of $ 10.00 per machine hour. The total actual manufacturing overhead costs are $84. What entry would Pell make to adjust the manufacturing overhead account for overallocated or underallocated overload?

Answers

Answer:

Adjusting entry is given below

Explanation:

DATA

Estimated Overhead = $150,000

Actual Overhead = $84,000

Under/Over allocated =?

Solution

Under/Over allocated Overhead = Estimated Overhead - Actual Overhead

Under/Over allocated Overhead = $150,000 - $84,000

Under/Over allocated Overhead = $66,000

We had over-allocated manufacturing overhead with $66,000

To adjust manufacturing Overhead account we should make the following entry

Entry                                               DEBIT     CREDIT

Manufacturing Overhead              $66,000

Cost of goods sold                                          $66,000

Bookmark question for later Cross-training workers does the following for your workers a. creates a sense of achievement and job satisfaction b. workers take pride as they help their companies compete through higher productivity c. helps reduce turnover d. all of the above e. only a and b

Answers

Answer:

d. all of the above

Explanation:

Cross-training applies to workers, who are trained for different spectrum other than their job responsibilities.

Cross-training workers are multitasking and do the following tasks:

They helps other employees to appreciate each other’s jobs.They help companies through higher efficiency & productivity and are proud of that. Cross-training forces also helps in reducing the turnover to gain more profit.

So, Cross-training workers helps to train other employees to perform new tasks in addition to their usual duties and the correct option is "d".

Identify the sentences with correct parallel structure.
1. Al is tasked with researching, analyzing, and to write the Simpson Inc. recommendation report.
2. Sarah would like to meet her sales goals, run a marathon, and get her promotion before the end of July. Last month, I traveled for business, pleasure, and community service
3. On the second floor, past the green door, next to the green vase, you'll see your umbrella
4. Next month, we anticipate that Hassam Creamery will consolidate, Nicolette Dairy Systems will be acquired, and General Lactose will go out of business.

Answers

Answer:

2. Sarah would like to meet her sales goals, run a marathon, and get her promotion before the end of July. Last month, I traveled for business, pleasure, and community service

3. On the second floor, past the green door, next to the green vase, you'll see your umbrella

Explanation:

The parallel structure refers to the structure in which there is the same words example that reflects a minimum two words or thoughts that contains the same importance

In the given options the second and third statement represents the parallel structure as it involves various thoughts that have one objective to accomplish that

Hence, all the other options are incorrect

Zisk Co. purchases raw materials on account. Budgeted purchase amounts are: April, $99,000; May, $129,000; and June, $139,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $41,000. Prepare a schedule of budgeted cash payments for April, May, and June.

Answers

Answer and Explanation:

The preparation of a schedule of budgeted cash payment for the three months i.e April, may and June is presented below:

Particulars                         April           May                June  

Purchase                          $99,000    $129,000        $139,000  

Payment made in

Latest Month (70%)       $69,300    $90,300          $97,300  

Payment made in

Next Month (30%)            $29,700     $38,700         $41,700  

                                    Cash Disbursements  

Particulars                        April             May                  June  

Payment made in  

Current Month (70%)      $69,300       $90,300          $97,300  

Add:

Last Month

Purchases       (30%)       $41,000        $29,700          $38,700  

Budgeted

Cash Payments                $110,300      $120,000        $136,000

On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day, 8%, $7,500 note. What is the journal entry needed to record the transaction by Jarrett Company

Answers

Answer:

Debit cash with $7,500

Credit notes payable with $7,500

Explanation:

The journal entry needed to record the transaction by Jarret company is

Cash account. Dr $7,500

Notes payable account $7,500

Since Jarret company borrowed $7,500, it means an increase in cash hence increase in asset will be debited. Cash will therefore be debited. Because the company signed a note payable against cash, it means note payable account will be credited.

On May 22, Jarrett Company borrowed $7,500 frog Fairmont Financing. signing a 90-day, 8%. $7,500 note. The journal entry is made to record the transaction by Jarrett Company. Debit cash with $7,50

Credit notes payable with $7,500

The journal entry needed to record the transaction by Jarret company is

Cash account. Dr $7,500

Notes payable account $7,500

Because Jarret Company borrowed $7,500, a rise in cash and thus an increase in asset will be debited. As a result, cash will be deducted. Because the corporation signed a note payable against cash, the account will be credited.

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Bond issuance: 20% of total funds, requires 15% interest per year Bank loan: 60% of total funds, requires 9.5% interest per year Preferred Stock issuance: 20% of total funds, requires 5% dividend per year What is Valentino’s average rate of return on the new project?

Answers

Answer: 28.57%

Explanation:

Average return given the variables will be;

[tex]Average rate of return = \frac{Annual net income}{Average investment}[/tex]

Average rate of return = [tex]\frac{1,000,000}{\frac{7,000,000}{2} }[/tex]

Average rate of return  = 1,000,000/3,500,000

Average rate of return = 28.57%

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 30,400 Total fixed manufacturing overhead cost $ 425,600 Variable manufacturing overhead per machine-hour $ 5.00 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 20 Direct materials $ 590 Direct labor cost $ 1,180 The amount of overhead applied to Job T687 is closest to:

Answers

Answer:

The amount of overhead applied to Job T687 is closest to: $280.

Explanation:

Predetermined rate = Budgeted Overheads / Budget Activity

                                 = $ 425,600 /  30,400

                                 = $14.00 per machine-hour

Applied overheads to job T687 = Predetermined rate × Actual machine hours used

                                                     =  $14.00 × 20

                                                     =  $280

Conclusion :

The amount of overhead applied to Job T687 is closest to: $280.

Data for 2021 were as follows: PBO, January 1, $243,000 and December 31, $278,000; pension plan assets (fair value) January 1, $186,000, and December 31, $233,000. The projected benefit obligation was underfunded at the end of 2021 by:

Answers

Answer:

$45,000

Explanation:

Computation for the projected benefit obligation

December 31 PBO($278,000)

December 31 Plan assets 233,000

Funded status($45,000)

Therefore the projected benefit obligation was underfunded at the end of 2021 by: $45,000

has a margin of safety percentage of 20% based on its actual sales. The break-even point is $759000 and the variable expenses are 60% of sales. Q: Given this information, the actual profit is:

Answers

Answer:  $379,500

Explanation:

Total Sales = Break-even sales + Margin of Safety

The Break-Even sales are therefore = 100% - 20%

= 80% of sales

Total Sales is therefore;

Break-even =   80% * Total Sales

Total Sales = Break-even/80%

= 759,000/0.8

= $948,750

Assuming no fixed costs, actual profit will be Sales less Variable expenses;

=Sales - Variable expenses  

= 1 - 60%

Actual profit = 40% * Sales

= 40% * 948,750

= $379,500

A production line at V. J.​ Sugumaran's machine shop has three stations. The first station can process a unit in 9 minutes. The second station has three identical​ machines, each of which can process a unit in 15 minutes​ (each unit only needs to be processed on one of the three ​machines). The third station can process a unit in 7 minutes. Which station is the bottleneck station?

Answers

Answer:

Station 1 is a bottleneck station because the processing time taken to process the product in such station is 9 minute when compared with Station 2 and Station 3

Explanation:

Station 1 = Processing time is 9 minutes

Station 2 = Processing time is 5 minutes per unit (15 minutes / 3  machines)

Station 3 = Processing time is 7 minutes

Thus, the Station 1 is the bottleneck station with a bottleneck time of 9 minutes per unit.

Describe Reid Hoffman the founder and creator Linkedln?

Answers

Answer:

Reid Garrett Hoffman is an American internet businessman, tech entrepreneur, writer. Hoffman became co-founder and president of LinkedIn, an enterprise-oriented social media network mainly utilized for business networking. In 2016, Hoffman transferred LinkedIn for $26.2 billion in cash to Microsoft, then entered the board for Microsoft.

Dorpac Corporation has a dividend yield of 1.3 %1.3%. Its equity cost of capital is 7.4 %7.4%​, and its dividends are expected to grow at a constant rate. a. What is the expected growth rate of​ Dorpac's dividends? b. What is the expected growth rate of​ Dorpac's share​ price?

Answers

Answer:

(A) 6.1%

(B) 6.1%

Explanation:

Dorpac corporation has a dividend yield of 1.3%

Its equity cost of capital is 7.4%

(a) The expected growth rate of Dorpac dividend can be calculated as follows

= Equity cost of capital-Dividend yield

= 7.4%-1.3%

= 6.1%

(b) Since the dividend is expected to grow at a constant growth rate then, the expected growth rate of Dorpac's share price is 6.1%

Paragon Properties built a shopping center at a cost of $50M in year 2010. The company started leasing space in July of 2014. The land was purchased for $5M. Determine the depreciation charges through 2017 if the property was sold in November 2017.

Answers

Year = 2014  

Cost= $50 M - $5 M = $45 M

Rate =1.177%  

Depreciation= 1.177% * $45 M = $529,650

Year=2015

Cost = $45 M

Rate= 2.564%  

Depreciation= $45 M * 2.564% = $1,153,800

Year = 2016

Cost = $45 M

Rate =2.564%  

Depreciation= $45 M * 2.564% = $1,153,800

Year = 2017

Cost = $45 M

Rate =2.564%  

Depreciation= $45 M * 2.564% = $1,153,800

therefore, total depreciation= $1,153,800 + $1,153,800 + $1,153,800 + $529,650 = $3,991,050

Depreciation charges through 2017 = $3,991,050 .

The Depreciation charges through 2017, if property was sold in November 2017 will be $3,991,050.

Depreciation

In the following question we are provided with information as follows:

The Value of the Property in the year 2010 = $50M. The Company started leasing space in July of 2014.

Land was purchased for $5M, which means the Cost of property is now $50M - $5M = $45M. The Depreciation rate in 2014 is 1.17%,

Depreciation value in 2014 = $45M × 1.17 =Depreciation rate in 2016 = 2.5%, Depreciation value = $45M × 2.5% =  $529,650

Depreciation rate in 2015 = 2.5%, which give Depreciation value in 2015 = $45M × 2.5% =  $1,153,800.

Depreciation rate in 2016 = 2.5%, Depreciation value = $45M × 2.5% =  $1,153,800.

Depreciation rate in 2017 = 2.5%, Depreciation value = $45M × 2.5% =  $1,153,800.

Therefore, Total Depreciation value in 2017 =  $529,650 + $1,153,800 + $1,153,800 + $1,153,800  = $3,991,050

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Which type of business is likely to have purchasing activities related primarily to consumable goods rather than products that will later be resold to consumers?

A. Printing business

B. Service oriented business

C. Retail business

D. Manufacturing business

Answers

Answer:

B. Service oriented business

Which type of business is likely to have purchasing activities related primarily to consumable goods rather than products that will later be re-sold to customers? Answer is service oriented business

Explanation:

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