Answer and Explanation:
The Preparation of budgeted functional income statement for 2015 is shown below:-
Pendleton Company
Budgeted functional income statement
For the year ended 2015
Particulars Amount
Sales revenue $2,204,800
($2,000,000 × 106% × 104%)
Less:
Estimated uncollectible accounts at 2% $44,096
Net sales revenue $2,160,704
Less: Cost of goods sold $1,178,320
($1,100,000 × 103% × 104%)
Gross Profit $982,384
Less: Operating expense $575,000
($500,000 + 10%) + $25,000
Net income $407,384
We simply deduct all expenses from the sales revenue so that the net income could come
Many leaders have difficulty implementing their vision and strategies. Such problems may stem from a variety of issues in the design of the organization such as
Answer:
Inappropriate budgeting and control system
Explanation:
If there is no proper budgeting with respect to the revenues, expenses and also if there is no proper control than the implementation of the vision and strategies would become difficult due to which organization is not able to accomplish its goals and objective within a prescribed time
There should be proper structure of work by considering the budgeting and control system as if any organization would ignore this then they would lead to suffered high losses
Therefore as per the given scenario, the third option is correct
Answer:
inappropriate budgeting and control systems is the correct answer.
Explanation:
The Park Avenue Corporation currently makes a part required in its finished product. The company uses 2,116 units of this part annually. Park Avenue Corp has been approached by a vendor to provide this part for $13.04 each. The following cost information is provided
Direct Materials per unit $6.34
Direct Labor per unit $7.30
Variable Factory Overhead per unit $2.50
Fixed Factory Overhead per unit $7.50
How much would Park Avenue Corporation save by having the vendor make the part, instead of making it themselves?
Answer:
If the company buys the part, it will save $$6,559.6
Explanation:
Giving the following information:
Purchase price= $13.04
The company uses 2,116 units of this part annually.
Production:
Direct Materials per unit $6.34
Direct Labor per unit $7.30
Variable Factory Overhead per unit $2.50
We weren't provided with information regarding the fixed costs. I will assume that non of the fixed overhead costs are avoidable, therefore, they are irrelevant to the decision making process.
Buy:
Total cost= 2,116*13.04= $27,592.64
Production:
Total cost= 2,116*(6.34 + 7.3 + 2.5)= $34,152.24
If the company buys the part, it will save $$6,559.6
In the case when the company buys the part, it will save $6,559.6.
Calculation of the value of part:Since
Purchase price= $13.04
Direct Materials per unit $6.34
Direct Labor per unit $7.30
Variable Factory Overhead per unit $2.50
Now
For Buy:
Total cost= 2,116*13.04= $27,592.64
For Production:
Total cost= 2,116*(6.34 + 7.3 + 2.5)= $34,152.24
So, we can say that In the case when the company buys the part, it will save $6,559.6.
Learn more about material here: https://brainly.com/question/24555844
Suppose Emilio offers you $500 today or $X in 10 years. If the interest rate is 6 percent, then at what value of X would you be indifferent between the two options
This question is impossible and implausible
Who is Emilio? How do we know he'll be around in 10 years? IS he good for the money, or is it counterfeit? Are we adjusting for inflation? The dollar is worth more in Malaysia than the U.S., so where are we starting and where are we ending? There's just not enough data here.
Which of the following is a factor that influences the business cycle?
interest rates on loans
tax rebates
political elections
import fees
Answer:
hey mate
good morning....
Explanation:
answer:is...... Interest rates on loan's...
I hope it's helpful to you......
plzzzz... mark Me As BrainleastIf the expected sales volume for the current period is 7,000 units, the desired ending inventory is 400 units, and the beginning inventory is 400 units, the number of units set forth in the production budget, representing total production for the current period, is
Answer:
7,000 units
Explanation:
Calculation for the number of units set forth in the production budget, representing total production for the current period
Using this formula
Number of units =Sales volume for the current period +Desired ending inventory -Beginning inventory
Let plug in the formula
Number of units=7,000 units +400 units-400 units
Number of units=7,000 units
Therefore the number of units set forth in the production budget, representing total production for the current period is 7,000 units
The marketing staff wants to supply pens with attached USB drives to clients. In the past this client has been victimized by social engineering attacks that led to a loss of sensitive data. The security administrator instructs the marketing staff not to supply the USB pens due to which of the following?
A. The cost associated with distributing a large volume of the USB pens
B. The security costs associated with securing the USB drives over time
C. The security risks associated with combining USB drives and cell phones on a network
D. The risks associated with the large capacity of USB drives and their concealable nature
Answer: C. The security risks associated with combining USB drives and cell phones on a network
D. The risks associated with the large capacity of USB drives and their concealable nature
Explanation:
Based on the scenario that has been discussed in the question, the security administrator will instructs the marketing staff not to supply the USB pens based on the security risks that are associated with combining USB drives and cell phones on a network.
Another reason is due to the risks that are associated with the large capacity of USB drives and their concealable nature.
Since the client has been victimized by social engineering attacks that led to a loss of sensitive data in the past, they'll be extra careful this time around.
According to Twitter’s amended S-1 filed November 4, 2013, what were the estimated amounts of net proceeds to be received by the company after the offering, excluding and including the over-allotment option?
Answer:
$1.62billion ; $1.82billion
Explanation:
According to amended S-1 filed November 4, 2013, the estimated amounts of net proceeds to be received by the company after the offering, excluding and including the over-allotment option is $1.62billion or approximately $1.86billion if the underwriters fully exercise their option to purchase additional stock. The standard initial public offering price is assumed to be $24 per share.
goes on to explain that the main reason for this offering is to optimize their financial flexibility and capitalization, as well as to make their common stock available to the public. Net proceeds from the offering would also be fully utilized in facilitating their working expenses as well as funding business and taxation expenses.
Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 37,600 machine-hours. The estimated variable manufacturing overhead was $4.38 per machine-hour and the estimated total fixed manufacturing overhead was $1,026,856. The predetermined overhead rate for the recently completed year was closest to:
Answer:
Predetermined OH rate = $ 31.69 per machine hour
Explanation:
Predetermined Fixed OH rate = Estimated Fixed Overhead / Estimated machine hours = $1,026,856 / 37,600
Predetermined Fixed OH rate = $27.31 per machine hour
Predetermined OH rate = Predetermined Fixed OH rate + Predetermined variable OH rate = $ 27.31 + $ 4.38
Predetermined OH rate = $ 31.69 per machine hour
DIP LLC reports ordinary income (before guaranteed payments) of $120,000, rent expense of $40,000, and interest income of $4,000 for the year. In addition, DIP paid guaranteed payments to partner Percy of $20,000. If Percy owns a 40% capital and profits interest, how much income will he report for the year and what is its character?
Answer:
$24,000 ordinary income
$1,600 interest income
$20,000 guaranteed payment.
Explanation:
Calculation for what how much income will Percy report for the year and what is its character
Calculation for Percy Ordinary income: 120,000 - 40,000 - 20,000
= 60,000 x 40%
= 24,000.
Calculation for Percy Interest income:
4,000 x 40%
= 1,600
Guaranteed Payment: 20,000
Therefore what Percy will report will be: $24,000 ordinary income
$1,600 interest income
$20,000 guaranteed payment.
The claim is that the proportion of peas with yellow pods is equal to 0.25 (or 25%). The sample statistics from one experiment include 540 peas with 159 of them having
yellow pods. Find the value of the test statistic.
The value of the test statistic is (Round to two decimal places as needed.)
Answer:
2.361
Explanation:
Calculation to Find the value of the test statistic
Based on the given information let our:
p=0.25
x = 159
n = 540
Since our p is 0.25 the first step is to find q using this formula
q = 1 - p
Let plug in the formula
q = 1-0.25
q= 0.75
Second step is to find the psample using this formula
psample= x/n
Let plug in the formula
psample= 159/540
psample = 0.294
Last step is to find the value of the test statistic
Using this formula
z= (psample - p) / √(pq/n)
Let plug in the formula
z = (0.294 - 0.25) / √(0.25×0.75/540)
z=0.044/√(0.1875/540)
z=0.044/√(0.000347222222)
z=0.044/0.01863389
z=2.361
Therefore the value of the test statistic will be 2.361
Globus Autos sells a single product. 8 comma 3008,300 units were sold resulting in $ 84 comma 000$84,000 of sales revenue, $ 24 comma 000$24,000 of variable costs, and $ 18 comma 000$18,000 of fixed costs. If Globus reduces the selling price by $ 1.10$1.10 per unit, the new margin of safety is: (Round any intermedary calculations to the nearest cent.)
Answer:
$59,000
Explanation:
We will first determine the variable cost per unit
= $24,000/300
= $80
Contribution margin percentage =
$280 - ($80 - $1.10)/$280
= 0.72
= 72%
New break even point = $18,000/72%
= 25,000
Old break even point =
($280 - $80)/280
= 0.71
= 71%
= $18,000/71%
= $25,352
Margin of safety = $84,000 - $25,000
= $59,000
You’ve just secured a new client in your accounting practice, Peter's Pool Corporation (PPC), a brand new small business specializing in pool service. The owner, Peter Peck, is a terrific swimmer and pool repair specialist, but definitely not an accountant. Your job is to help Peter put his affairs in order. Luckily, Peter has only been in operation for a month and things have not gotten too out of hand yet! Peter has to submit his financial statements to his investors and doesn’t know where to begin. It’s your job to go through the complete Accounting cycle to prepare the financial statements for the PPC.
Answer: just give what u know the business is small so it can’t manage
Explanation:
Colt Carriage Company offers guided horse-drawn carriage rides through historic Charleston comma South Carolina. The carriage business is highly regulated by the city. Colt Carriage Company has the following operating costs during April: LOADING...(Click the icon to view the information.) During April (a month during peak season), Colt Carriage Company had 13 comma 500 passengers. Sixty percent of passengers were adults ($23 fare) while 40% were children ($15 fare). Requirements 1. Prepare the company's contribution margin income statement for the month of April. Round all figures to the nearest dollar. 2. Assume that passenger volume increases by 10% in May. Which figures on the income statement would you expect to change, and by what percentage would they change? Which figures would remain the same as in April?
Answer:
1) Colt Carriage Company
Income Statement
For the month ended April 202x
Revenues:
Adults passengers $186,300Children $81,000 Total revenues $267,300Variable costs:
City fees $26,730Souvenirs $7,425Brokerage fees $11,340Carriage drivers $52,650Total variable costs $98,145Contribution margin $169,155
Period costs:
Depreciation $2,900Horse leases $48,000Marketing expenses $7,350Payroll expenses $7,600Total period costs $65,850Operating profit $103,305
2) If the total amount of passengers increase by 10%, then all variable costs will increase by 10% except brokerage fees which would increase only by 6%. Revenues should also increase by 10%. Period costs should not change.
Contribution margin should increase by 10.29% and operating profit would increase by 16.81%.
Explanation:
since the information is not complete, I looked it up:
Revenues
13,500 passengers:
8,100 x $23 = $186,300
5,400 x $15 = $81,000
total $267,300
variable costs:
fees paid to the city 10% of total revenue
souvenirs $0.55 per passenger
brokerage fees 60% of total tickets x $1.40
carriage drivers $3.90 per passenger
fixed costs:
depreciation $2,900
horse leases $48,000
marketing expenses $7,350
payroll expenses $7,600
Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted.
Sales $610,000
Cost of goods sold 435,000
Salaries 113,000 ($25,000 is indirect)
Utilities 15,600 ($5,700 is indirect)
Depreciation 54,400 ($17,400 is indirect)
Office expenses 29,600 (all indirect)
1. Prepare a departmental income statement for 2019.
2. & 3. Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should Jansen eliminate the ski department?
Answer:
1.
Jansen Company
Departmental Income Statement—Ski Department
For Year Ended 2019
Sales 610,000
Less : Cost of goods sold 435,000
Gross profit 175,000
Less; Expenses
Salaries 113,000
Utilities 15,600
Depreciation 54,400
Office expenses 29,600 212,600
Operating loss $37,600
2.
Jansen Company
Departmental Income Statement—Ski Department
For Year Ended 2019
Sales 610,000
Less : Cost of goods sold 435,000
Gross profit 175,000
Less; Direct Expenses
Salaries 88,000 (113,000 - 25,000)
Utilities 9,900 (15,600 - 5,700)
Depreciation 37,000 (54,400 - 17,400)
Total Direct Expenses 134,900
Contribution to overhead $40,100
They should not eliminate the Ski Department because it would contribute $40,100 to overhead.
Our company has reviewed the utilities bills for our company. We have determined that the highest and lowest bills were $5,600 and $3,200 for the months of January and September. If we produced 1,200 and 600 units in these months, what was the variable cost per unit associated with the utilities bill
Answer:
Variable cost per unit= $4
Explanation:
Giving the following information:
We have determined that the highest and lowest bills were $5,600 and $3,200 for January and September. We produced 1,200 and 600 units in these months.
To calculate the variable cost per unit, we need to use the high-low method. We will use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (5,600 - 3,200) / (1,200 - 600)
Variable cost per unit= $4
A selection model in which an applicant moves on to the next stage in the process on the condition that she or he satisfies a score criterion on previous parts of the process is referred to as a _____ model. Group of answer choices
Answer:
multiple hurdle
Explanation:
The term is described in the question is known as a multiple hurdle model. In this specific approach, the individual applying needs to pass each step in the selection process in order to continue to the next one. Failure at any of the steps results in an automatic disqualification of the applicant from further consideration. Each step needs to be passed by meeting the minimum score that has been pre-set before starting the step.
This question explores the calculation of the unemployment rate. You will be provided some imperfect employment data for four different countries and asked to identify the unemployment rate. Task 1: The population of Asartaland is 95. Of these 95 individuals, 75 are in the labor force and 65 are employed. What is the unemployment rate in Asartaland
Answer:
Unemployment rate= 0.13= 13%
Explanation:
Giving the following information:
Of these 95 individuals, 75 are in the labor force and 65 are employed.
To calculate the unemployment rate, we need to use the following formula:
Unemployment rate= unmeployed population / labor force
Unemployment rate= 10/75
Unemployment rate= 0.13
On July 1, 2015, Pryce Co. issued 1,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2015 and mature on April 1, 2025. Interest is payable semiannually on April 1 and October 1. What amount did Pryce receive from the bond issuance
Answer:
$1,015,000
Explanation:
the issuer will receive = $1,000 x 99% = $990 for each bond
$990 x 1,000 bonds = $990,000
the issuer will also receive accrued interests = $1,000 x 10% x 3/12 months = $25 per bond
$25 x 1,000 bonds = $25,000
in total, the issuer will receive $990,000 + $25,000 = $1,015,000
If Wiper's stock had a price/earnings ratio of 10 at the end of 2020, what was the market price of the stock?Calculate the cash dividend per share for 2020 and the dividend yield based on the market price calculated in part e.Calculate the dividend payout ratio for 2020.Assume that accounts receivable at December 31, 2020, totaled $322 million. Calculate the number of days' sales in receivables at that date.Calculate Wiper's debt ratio and debt/equity ratio at December 31, 2020 and 2019.Calculate the times interest earned ratio for 2020 and 2019.
Answer:
Stock Price is $54.50
Cash Dividend per share $1.50
Dividend Yield 2.75%
Dividend payout ratio 27.46%
Days Sales in Receivable 38 days
Debt Ratio 68.29%
Debt/equity ratio 1.57
Interest earned ratio 3.16 times
Explanation:
1. Market price = Price to earning ratio * Earning per share
Earnings per share = Net Income / Average number of shares outstanding
Earnings per share : 233 / 42.7 = 5.45
Market price per share : 10 * 5.45 = 54.50
2. Dividend per share : Dividend paid / number of shares outstanding
DPS : 64 / 42.7 = 1.50
3. Dividend Yield : Dividend per share / Stock Price share
Dividend Yield : 1.50 / 54.50
4. Dividend Payout ratio : Total Dividend paid / Net Income
Dividend Payout ratio : 64 / 233 = 27.46%
5. Day Receivale : (Average Receivable / Sales ) * 365
Days Receivables : 322/ 3064 * 365 = 38 days
6. Debt Ratio : Total Liabilities / Total Assets
Debt ratio : 2194 / 3215 = 68.29%
7. Debt/ equity ratio : Debt / Equity
Debt/Equity : 1603 / 1021 = 1.57
8. Interest Earned Ratio : Earning before Interest and Tax / Interest Expense
Interest Earned Ratio : 310 / 98 = 3.16 times
Eastline Corporation had 12,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 4,080 shares. At the time of the stock dividend, the market value per share was $16. The entry to record this dividend is:
Answer: Debit Retained Earnings $40,080; credit Common Stock Dividend Distributable $40,080.
Explanation:
From the question, we have been informed that Eastline Corporation had 12,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 4,080 shares. At the time of the stock dividend, the market value per share was $16.
Based on the information provided, above, the entry to record the dividend will be to debit the retained earnings by $40,080 and then credit the common Stock dividend Distributable by $40,080.
Blossom Company sells equipment on September 30, 2020, for $20,100 cash. The equipment originally cost $72,800 and as of January 1, 2020, had accumulated depreciation of $42,100. Depreciation for the first 9 months of 2020 is $5,45. Prepare the journal entries to (a) update depreciation to September 30, 2015, and (b) record the sale of the equipment.
Answer:
Date Account titles and explanation Debit Credit
30/09/2020 Depreciation expense $5,450
Accumulated depreciation $5,480
(To record depreciation expense)
30/09/2020 Accumulated depreciation $47,550
Cash $20,100
Loss on sale of equipment $5,230
Equipment $72,880
(To record sale of equipment)
During the month of March, Karen Company's employees earned wages of $68,000. Withholdings related to these wages were $5,202 for Social Security (FICA), $14,700 for federal income tax, $6,300 for state income tax, and $900 for union dues. The company incurred no cost related to these earnings for federal unemployment tax, but incurred $2,000 for state unemployment tax.
Required:
Prepare the necessary March 31 journal entry to record wages expense and wages payable. Assume that wages earned during March will be paid during April.
Answer:
Journal entry to record wages expense and wages payable
Explanation:
As the company incurred no cost related to these earnings for federal unemployment tax so it would be excluded from wages and salaries expense
Entry DEBIT CREDIT
Salaries and wages Expense $68,000
Social Security(FICA) $5,202
Federal income tax $14,700
State income tax $6,300
union dues $900
Salaries and wages payable $40,898
Harvest Inc. produces and sells a single product. The selling price of the product is $200.00 per unit and its variable cost is $80.00 per unit. The fixed expense is $300,000 per month. The break-even in monthly unit sales is closest to:
Answer:
Break-even point (units)= 2,500 units
Explanation:
Giving the following information:
The selling price of the product is $200.00 per unit and its variable cost is $80.00 per unit. The fixed expense is $300,000 per month.
To calculate the break-even point in units, we need to use the following formula:
Break-even point (units)= fixed costs/ contribution margin
Break-even point (units)= 300,000 / (200 - 80)
Break-even point (units)= 2,500 units
Impact of 2020 lockdown on world's business economy?
If a stock is purchased for $100 per share and held one year, during which time a quarterly dividend of $1.5 is paid, each quarter, and the price climbs to $130 per share. What is the rate of return
Answer:
Total yield or rate of return is 0.36 or 36%
Explanation:
To calculate rate of return which is also the total yield on the stock, we will use the following formula,
Total Yield = (D + C) / P0
Where,
D represents dividends paid by the stock during the yearC is the capital appreciation(pr depreciation) or rise(or fall) in the price of the stock as compared to the purchase priceP0 is the purchase price or price in Year 0Total dividends for the year = 1.5 * 4 = $6
C = 130 - 100 = $30
Total Yield = (6 + 30) / 100
Total yield = 0.36 or 36%
A machine costs $600000 and is expected to yield an after tax net income of $23000 each year. Managment predicts this machine has a 10 year service life and a $120000 salvage value, and it uses straight line depreciation. Compute this machine's accounting rate of return
Answer:
6.39%
Explanation:
The cost of the machine is $600,000
The net income is $23,000
The management predict a that it has a 10 years service life
The salvage value is $120,000
The first step is to calculate the average investment
Average investment= (Cost of machine+Salvage value)/2
= $600,000+$120,000/2
= $720,000/2
= $360,000
Therefore, the accounting rate of return can be calculated as follows
= Annual net income/Average investment
= $23,000/$360,000
= 0.0639×100
= 6.39%
Hence the accounting rate of return is 6.39%
Flip's Pizzeria Inc. has the following financial items for the current year: Advertising Expenses $35,000 Cost of Goods Sold $400,000 Other Operating Expenses $300,000 Sales $2,735,000 Cost of Equipment purchased during the year (10 year estimate useful life, 0 salvage value) $325,000 Calculate Flip's taxable liability for the current year.
Answer:
we must determine the taxable income:
Sales $2,735,000
Cost of Goods Sold $400,000
Advertising Expenses $35,000
Other Operating Expenses $300,000
taxable income = $2,000,000
assuming the current corporate income tax rate (21%), current tax liability = $2,000,000 x 21% = $420,000
Since the question did not include any specific tax rate, I used the current one. But if the complete question includes some other tax rate, just multiply the taxable income by it.
Ace Company purchased a machine valued at $310,000 on August 1. The equipment has an estimated useful life of six years or 2.5 million units. The equipment is estimated to have a salvage value of $7,200. Assuming the straight-line method of depreciation, what is the amount of depreciation expense that needs to be recorded at the end of the first year
Answer:
The amount of depreciation at the end of the first year = $21027.77
Explanation:
Given machine cost = $310000
The life of machine = 6 years
Salvage value = $7200
Now find the total depreciation by subtracting the salvage value from the cost of the machine.
Depreciation = Machine cost – salvage value
= 310000 – 7200
= 302800
Total depreciation of 6 years = $302800
Annual depreciation = 302800 / 6 = 50466.66
Since in the first year the machine is used from 1st August to 31st December. So, depreciation = 50466.66 *(5/12) = 21027.77
on august 1 2018 rocket retailers adopted a plan to discontinue in its income statement rocket would report a before-tax oss on discontinued operations of
Answer: $143,000
Explanation:
Before-tax loss on Discontinued Operations for the year ended January 31, 2019;
= Operating loss + Impairment of division assets
= $128,000 + $15,000
= $143,000
This loss will be recorded in the Income statement of Rocket Retailers separately from Continuing Operations and as it is a loss, it will most probably incur a future tax benefit. It will however reflect in the overall income of Rocket Retailers.
Russell Inc. had sales of $2,300,000 for the first quarter of 2017. In making the sales, the company incurred the following costs and expenses.
Variable Fixed
Cost of goods sold $940,000 $464,000
Selling expenses 74,000 54,000
Administrative expenses 96,000 145,000
Prepare a CVP income statement for the quarter ended March 31, 2017.
Answer:
$527,000
Explanation:
Preparation of a CVP income statement for the quarter ended March 31, 2017.
Russell Inc.income statement for the quarter ended March 31, 2017.
Sales $2,300,000
VARIABLE EXPENSES
Cost of goods sold $940,000
Selling expenses 74,000
Administrative expenses 96,000
Total Variable Expenses 1,110,000
Contribution Margin 1,190,000
($2,300,000-$1,110,000)
FIXED EXPENSES
Cost of goods sold $464,000
Selling expenses 54,000
Administrative expenses 145,000
Total Fixed Expenses 663,000
Net Income/(Loss) $527,000
(1,190,000-663,000)