Business College

Sparty Corporation has provided the following information for its most recent year of operation: Revenues earned were $84,000, of which $9,000 were uncollected at the end of the year. Operating expenses incurred were $46,000, of which $8,000 were unpaid at the end of the year. Dividends declared were $19,000, of which $3,000 were unpaid at the end of the year. Income tax expense is $13,300.

Required:
How much net income was reported on Sparty's income statement?

Answers

Answer 1

Answer: $247000

Explanation:

The following can be deduced from the question:

Revenue 84,000

Less: Operating Expenses 46,000

Profit Before Tax 38,000

Less Taxes 13,300

Net Income 24700

Therefore, the net income that was reported on Sparty's income statement will be $24700.

Related Questions

5. Problems and Applications Q5 In the 1990s and the first two decades of the 2000s, investors from the Asian economies of Japan and China made significant direct and portfolio investments in the United States. At the time, many Americans were unhappy that this investment was occurring. True or False: It was better for the United States not to receive this foreign investment because it shrank the capital stock. True False True or False: It's best for Americans that China and Japan, rather than Americans themselves, made the investment, so that Americans can have more to spend on consumption. True False

Answers

Answer:

False False

Explanation:

The investment from China and Japan would have increased the capital stock because it would mean that there was more cash for investment products in the United States. It would be false therefore to say that the investments shrank capital stock.

On the other hand, it would have been best that Americans and not the Chinese or the Japanese made the investments because when investments yield returns, those returns are sent to the investors which in this case are in Japan and China which means that more money will be flowing out the United States.

A company understated its ending inventory balance by $4,000 in 2021. What impact will this error have on cost of goods sold and gross profit in 2021 and 2022?

Answers

Answer:

Cost of goods sold will be overstated by $4,000 in 2021.

Gross profit will be understated by $4,000 in 2022.

Explanation:

If ending inventory is underestimated, then the cost of goods sold would increase by same amount of underestimated inventory I.e $4,000.

However, since cost of goods would increase by $4,000 in 2021, the gross profit will be underestimated by $4,000 in 2022. This is because the overstatement of cost goods sold have eroded the extra profit that should have been added to the gross profit.

how do you determine a bond premium or discount

Answers

A premium is likeand a discount i

Business-process outsourcing (BPO) is a type of outsourcing that consists of contracting operations and responsibilities of a specific business process (e.g.,human resources) to a third party service provider. Such outsourcing generally began with manufacturing firms outsourcing your supply chain but has grown into a much wider range of process, including marketing, finance, sales, and accounting. According to a recent Frobes articles, the revenue of the globe outsourced services Industry rose from 45 billion in 2000 to nearly 100,000,000,000 in 2012. Competition among firms in that BPO market is strong. Companies based in the United States include HP enterprise services, affiliated come to Peterson services, an automated data processing (ADP). A number of Indian companies, however, also provide worldwide BPO services, such as Infosys, Wipro, and Genpact. An article in business wk. suggested that BPL can save and users anywhere from 15 to 85%. International BPO service providers are particularly attractive says offshore labor I first an additional 25 to 30% cost savings. Furthermore, approximately 25% of the cost savings result from BPO firms proprietary products. The remaining 10% to 30% in cost reduction accrues from consolidated operations. Suppose you are the manager of a U.S.-based company and must decide whether to outsource your human resources department. Based on the above information and your study, please outline arguments supporting and opposing a decision to outsource this function of your business. Please explain from a purely business standpoint, any issues that might arise from contracting with an international-based versus U.S.-based BPO service firm? Explain.

Answers

Answer and Explanation:

A good number of problems usually arise with outsourcing from outside the country.

1. Different laws and regulations: this is one if not the greatest impediments to outsourcing staff for a business. The legal and tax implications of outsourcing to a different country creates the need to make sure business processes align with the legal frameworks or laws in these regions.

2. Language barriers: this aspect considers the challenges of communication when utilizing BPO services. There is the need for clear communication using US English from the example. Example outsourcing to an Asian country where English is somewhat a rarity.

3. There is also the need for increased data protection, privacy and security measures as there is more exposure to data breaches with this form of outsourcing.

4. However overall outsourcing makes available cheaper labour as well as more competent hands as is this case with US and China

The prepaid insurance account shows a debit of $6,336, representing the cost of a 2-year fire insurance policy dated August 1 of the current year. 2.
On November 1. Rent Revenue was credited for $1,809, representing revenue
from a subrental for a 3-month period beginning on that date.
3. Purchase of advertising materials for $767 during the year was
recorded in the Advertising Expense account.
On December 31. Advertising materials of $277 are on hand.
4. Interest of $714 has accrued on notes payable. The interest will
be paid in January of the next year.
Instructions:
Prepare the following in general journal form.
A) The adjusting entry for each item.
B) The reversing entry for each item where appropriate.

Answers

Answer and Explanation:

The Journal entries are shown below:-

1. Insurance Expense Dr, $1,320 ($6,336 ÷ 24 × 5)

To Prepaid Insurance $1,320

(Being insurance expense is recorded)

No Reversing Entry required

2. Rental Revenue $603 ($1,809 ÷ 3)

To Deferred Rental Revenue $603

(Being rental revenue is recorded)

Reversing entry in the next year will be:

Deferred Rental Revenue Dr, $603

To Rental Revenue $603

(Being deferred rental revenue is recorded)

3. Advertising Materials Inventory Dr, $277

To Advertising Expense $277

(Being advertising material inventory is recorded)

The reversing entry would be:

Advertising Expense Dr, $277

To Advertising Materials Inventory $277

(Being advertising expense is recorded)

4. Interest Receivable Dr, $714

To Interest Income $714

(Being interest receivable is recorded)

Interest income Dr, $714

To Interest receivable $714

(Being interest income is recorded)

The manager of a computer help center needs to determine a shift schedule for
his sta . The center is open from 8am until midnight (12am), and is divided into four shifts. The number of employees needed on each shift is as follows: 4 on the rst shift (8am-12pm), 10 on the second shift (12pm-4pm), 8 on the third shift (4pm-8pm), and 6 on the last shift (8pm-12am). Two types of employees can be hired to sta the computer center: full-time employees and part-time employees. Full-time employees must be hired for two consecutive shifts, and can be hired to start in the rst, second or third shift. Part-time employees are hired for a single shift. Full-time employees are paid $14 an hour, while part-time employees are paid $12 an hour. Lastly, during each of the shifts, there must be at least two full-time employees sta ed for every part-time employee.
Formulate a linear programming model to satisfy the stang requirements at minimum cost.

Answers

Explanation:

we have to define certain variables in ordet for us to formulate the linear programming model

[tex]aj =[/tex] the number of full time staff hired at time j

[tex]bj=[/tex] number of full time staff hired at time j

1 full time emploer 8hrs x 14$

= 112 dollars

1 part time worker = 4hrs x $12

= 48 dollars

we set up the model as:

[tex]minimize 112(a_{1} +a_{2} +a_{3} )+48(b_{1} +b_{2} +b_{3})[/tex]

[tex]a_{1} + b_{1} = 4[/tex]

[tex]a_{1} +a_{2} +b_{2} = 10[/tex]

[tex]a_{2} +a_{3} +b_{3} =8[/tex]

[tex]a_{3} +b_{4} =6[/tex]

[tex]a_{1} >2b_{1}[/tex]

[tex]a_{1} +a_{2} \geq 2b_{2}[/tex]

[tex]a_{2} +a_{3} \geq 2b_{3}[/tex]

[tex]a_{3} \geq 2b_{4}[/tex]

[tex]a_{j} ,b_{j} \geq 0[/tex]

∀j

The president of the Super Sip Soda Corporation asks you, as the company economist, to forecast changes in consumer root beer purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $8.50 to $10.50, the quantity demanded will decrease from 2,500 units to 2,350 units a month

Answers

Answer:

the price elasticity of demand (midpoint formula) = % change in quantity demanded / % change in price = {(2,350 - 2,500) / [(2,350 + 2,500)/2]} / {(10.50 - 8.50) / [(10.50 + 8.50)/2]} = (-150 / 2,425) / (2 / 9.50) = -0.0619 / 0.2105 = -0.294 or |0.294| in absolute terms, price inelastic

this means that for every 1% that price increases, total quantity demanded will decrease by only 0.294%.

You can increase total revenue by increasing the price of beer:

previous revenue = $8.50 x 2,500 = $21,250

new revenue = $10.50 x 2,350 = $24,675

It is actually a very good idea to go ahead and increase the price.

Assume these events happened to Bakko, Inc. in Year 4. Bakko uses December 31 for the annual reporting period. At the beginning of Year4, Bakko owns 12 donut stores and 30 gas stations. Each of the 42 businesses is a separate business component. Bakko sells 2 donut stores in Year4 on October 1. The disposition is not considered to be a strategic shift. Bakko sells 6 gas stations in urban areas on May 1. The disposition is considered to be a strategic shift.
Match each of the following descriptions to where it would most likely be reported on Bakko's corporate income statement for Year 4.
1. Gain of $12,000 on sale of some equipment from one of the gas stations that Bakko still owns at 12/31/Year 4.
2. Bakko receives $5,000 for a fuel contract that will begin in Year 5.
3. Bakko has $100,000 gain on the sale of the gas stations on May 1, Year 4.
4. Operating results through April 30,Year 4 for the gas stations that were sold.
5. Bakko has a $20,000 loss on the sale of the donut stores on October 1.
A. Part of income from continuing operations.
B. As a discontinued operation.
C. Not part of net income for Year 4.

Answers

Answer:

1. Gain of $12,000 on sale of some equipment from one of the gas stations that Bakko still owns at 12/31/Year 4. - Part of income from continuing operations.

The gas station is still owned by Bakko so the gain received will form part of income from continuing operation.

2. Bakko receives $5,000 for a fuel contract that will begin in Year 5. - Not part of net income for Year 4

As per the Revenue Recognition principle of Accounting, revenue is only to be recorded when earned which means that this revenue will be in the Year 5 income.

3. Bakko has $100,000 gain on the sale of the gas stations on May 1, Year 4. - As a discontinued operation.

The gas station has been sold and so is a discontinued operation.

4. Operating results through April 30,Year 4 for the gas stations that were sold. - As a discontinued operation.

The gas station has been sold and so is a discontinued operation. Will be reported in the Income statement as such.

5. Bakko has a $20,000 loss on the sale of the donut stores on October 1. - As a discontinued operation.

The donut store was sold and is no longer a part of Bakko so is a discontinued operation.

There is a new country called Saffron where the people's political opinions lead them to divide themselves into five different groups, representing different outlooks on how the legislature should approach public policy. These five groups based on political convictions in turn result in the formation of five political parties (each named after a type of food). The five parties are listed below in order from most liberal to most conservative. In the first election for the legislature in this country the people vote for their candidates and their parties as follows, with the vote in the whole country being the same as the vote in every part of it:
Fruit 28%Soup 14%Bread 12%Meat 20%Vegetable 26%If after the first election process is complete the Vegetable party has some seats in the legislature and the Meat party has none, then the election system is which of the following?A. Proportional representation.B. Single member districts and majority winners.C. Single member districts and plurality winners.

Answers

Answer: B. Single member districts and majority winners.

Explanation:

This is a Single member district majoritarian system because that is the only way that Vegetable party would have some seats in the legislature and the Meat party would have none.

In a Single member district majoritarian system, only 1 member will be chosen per district and this would be the person with the majority of votes in the first election process.

In this case therefore, Vegetable party won the majority in some districts that it ran in and Meat did not win the majority in any.

A company had the following assets and liabilities at the beginning and end of this year.
Assets Liabilities
Beginning of the year $ 109,500 $ 46,943
End of the year 169,000 68,445
a. Owner made no investments in the business, and no dividends were paid during the year.
b. Owner made no investments in the business, but dividends were $1,450 cash per month.
c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock.
d. Dividends were $1,450 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock.
Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases:
(Decreases in equity should be indicated with a minus sign.)
a. b. c. d.
Beginning of the year

Answers

Answer: Check attachment

Explanation:

Note that the beginning of the year equity was calculated as:

= 109500 - 46943

= 62557

Ending of the year equity was calculated as:

= 169000 - 68445

= 100555

Check attachment for further analysis

Prepare the necessary adjusting entries at December 31, 2019 for the Washington Apple Company. Assume that no adjustments were made during the year. Use the journal below.

a. On October 1, 2019 the company purchased for cash a one year fire policy for $4000.
b. The company had depreciation on equipment of $12,500 for the year.
c. On December 28, 2019 the company received $4000 cash for products. The entire $4000 was counted as revenues for the year when the transaction was made. One half of the product was shipped on December 30, 2019 and the other half won't be produced and shipped until mid-January.

Answers

Answer:

Entries are given

Explanation:

Fire policy will be debited as it is an asset for the company. Depreciation is always debited as it is a non-cash expense and accumulated depreciation will be credited related to the equipment depreciated. Revenue will be recognized to the extent of value the company has provided as a service or a product.

DEBIT CREDIT

Fire policy $4,000

cash $4,000

Depreciation expense $12,500

Accumulated depreciation (equipment) $12,500

Cash $4.000

Revenue $2,000

Unearned revenue $2.000

Businesses in the United States are governed by laws that provide rights to all citizens regardless of their race, color, religion, gender, or country of origin. The U.S. Constitution established three branches of government to ensure that no one group or individual could control all the power. The three branches—legislative, executive, and judicial—act as a system of checks and balances. The goal of this activity is to determine which branch of government regulates each human resource management issue. The three branches of government in the United States influence human resource management (HRM) practices such as recruitment, selection, compensation, and performance management. This activity is important because Individuals need to be aware of the legal system and legislation governing HRM practices in the workplace.

Match the brach of the Fedral goverment with the followings.

a. Retirement
b. Best Buy
c. Labor Relations
d. Affirmative Action
e. Ford
f. Education
g. Oil Pipeline
h. Starbucks
i. Equal Employment

1. Judicial Branch
2. Executive Branch
3. Legislative Branch

Answers

Answer:

Executive Branch: Affirmative Action, Oil Pipeline, Equal Employment

Judicial Branch: Labor Relations, Best Buy, Starbucks

Legislative Branch: Ford, Education, Retirement

The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred:
Indirect materials $15,300
Indirect labor 133,000
Property taxes, factory 8,300
Utilities, factory 73,000
Depreciation, factory 152,100
Insurance, factory 10,300
Total actual manufacturing overhead costs incurred $392,000
Other costs incurred:
Purchases of raw materials (both direct and indirect) $403,000
Direct labor cost $63,000
Inventories: Raw materials, beginning $20,300
Raw materials, ending $30,300
Work in process, beginning $40,300
Work in process, ending $70,300
The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 20,000 machine-hours were used during the year.
Required:
a. Compute the amount of under-applied or over-applied overhead cost for the year.
b. Prepare a schedule of cost of goods manufactured for the year.

Answers

Answer:

See explanations below.

Explanation:

a. It is over applied overhead cost because applied overhead cost is more than the actual overhead cost.

Applied overhead cost = 20,000 hours × $20 = $400,000.

b. Please find attached schedule of cost of goods manufactured as requested.

Hokies uses the following accounts:

Accounts Payable
Equipment
Supplies
Rent Expense
Notes Payable
Salaries
Expense
Accounts
Receivable
Utilities
Expense
Service
Revenue
Retained

Required:
Indicate which accounts should be debited and which should be credited for the following transactions of Hokies companies.

1. Pay a cash dividend.
2. Pay rent in advance for the next three months.
3. Provide services to customers on account.
4. Purchase office supplies on account.
5. Pay salaries for the current month.
6. Issue common stock in exchange for cash.
7. Collect cash from customers for services provided in (3) above.
8. Borrow cash from the bank and sign a note.
9. Pay for the current month's utilities.
10. Pay for office supplies purchased in (4) above.

Answers

Answer:

Transaction Account Debited Account Credited

1. Pay a cash dividend. Dividends Cash

2. Pay rent in advance for the next Prepaid Rent Cash

three months.

3. Provide services to customers Accounts Receivables Service revenue

on account.

4. Purchase office supplies on Supplies Accounts receivables

account.

5. Pay salaries for the current Salaries Account Payables

month.

6. Issue common stock in Cash Common stock

exchange for cash.

7. Collect cash from customers for Cash Account Receivables

services provided in (3) above.

8. Borrow cash from the bank Cash Notes payable

and sign a note.

9. Pay for the current month's utilities. Utilities Cash

10. Pay for office supplies purchased Account payables Cash

in (4) above.

The City of Breukelen maintains a rapid transit system, which is accounted for in a proprietary fund called Breukelen RTS. Based on the following excerpt from the trial balance, prepare a statement of revenues, expenses, and changes in net position for the Breukelen RTS for the year ended December 31, 2019, using the appropriate format.
Revenues from fares $3,150,000
Train operating expenses 2,430,000
Track and train maintenance expenses 565,000
Depreciation 325,000
Investment income 50,000
Interest expense on long-term debt 320,000
Cash subsidy from the City of Breukelen 500,000
Net position, January 1, 2019 7,430,000

Answers

Answer:

The City of Breukelen

Breukelen RTS

Statement of revenues, expenses, and changes in net position

For the year ended December 31, 2019

Particulars Amount$ Amount$

Revenues

Operating Revenue 3,150,000

Operating Expenses

Train operating expenses 2,430,000

Track and maintenance expenses 565,000

Depreciation expenses 325,000

Total operating expenses 3,320,000

Operating loss (170,000)

Non-Operating revenue (Expenses)

Investment income 50,000

Interest expenses 320,000

Total Non-operating (expenses) (270,000)

Loss before transfer (440,000)

Transfer from City of B 500,000

Change in net assets 60,000

Total net position (beginning) 7,430,000

Total net position (ending) 7,490,000

helpp please 10 points!

2. What are Internal and external factors.

Answers

Hope that helps! If you look it up it's all online!

An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is 0.4. The risk-free rate of return is 5%. The standard deviation of the returns on the optimal risky portfolio is :_______

a. 25.5%
b. 22.3%
c. 21.4%
d. 20.7%

Answers

Answer:

Option c (21.4%) is the right approach.

Explanation:

As we know.

wA and wB = weights of the securities SDA and SDB = standard deviations Cor(A,B) = correlation coefficient.

On applying the formula:

⇒ [tex]SD \ Portfolio = [wA^2\times SDA^2+wB^2\times SDB^2+2\times wA\times wB\times SDA\times SDB\times Cor(A,B)]^{0.5}[/tex]

On substituting the values, we get

⇒ [tex](0.29^2\times 39^2+0.71^2\times 20^2+2\times 0.29\times 0.71\times 39\times 20\times 0.4)^{0.5}[/tex]

⇒ [tex]21.40 \ Percent[/tex] (%)

Taco Bell processes on average 1,500 customers per day (15 hours). On average there are 75 customers in the restaurant (waiting to place the order, waiting for the order to arrive, eating, etc.). How long does an average customer spend at Taco Bell and what is the average customer turnover

Answers

Answer:

1.333 customers per hour

Explanation:

The computation of average customer turnover is shown below:-

number of customers processed per hour = 1,500 ÷ 15

= 100 customers per hour

Now,

Average time spend by the customer is given as the ratio I/R = 75 ÷ 100

= 0.75 hours

= 45 minutes

Customer turnover = 100 ÷ 75

= 4/3

= 1.333 customers per hour

Professionalism is a skill necessary for......

Answers

Professional skills are career competencies that often are not taught (or acquired) as part of the coursework required to earn your masters or PhD.

Answer:

Professional skills such as leadership, mentoring, project management, and conflict resolution are value-added skills essential to any career.

Belden, Inc. acquires 30 percent of the outstanding voting shares of Sheffield, Inc. on January 1, 2017, for $320,000, which gives Belden the ability to significantly influence Sheffield. Sheffield has a net book value of $828,000 at January 1, 2017. Sheffield's asset and liability accounts showed carrying amounts considered equal to fair values except for a copyright whose value accounted for Belden's excess cost over book value in its 30 percent purchase. The copyright had a remaining life of 16 years at January 1, 2017. No goodwill resulted from Belden's share purchase.

Sheffield reported net income of $180,000 in 2017 and S230,000 of net income during 2018. Dividends of $70,000 and $80,000 are declared and paid in 2017 and 2018, respectively. Belden uses the equity method.

a. On its 2018 comparative income statements, how much income would Belden report for 2017 and 2018 in connection with the company's investment in Sheffield?
b. If Belden sells its entire investment in Sheffield on January 1, 2019, for S400,000 cash, what is the impact on Belden's income?
c. Assume that Belden sells inventory to Sheffield during 2017 and 2018 as follows:

Year Cost to Belden Price to Sheffield Year-End Balance (at Transfer Price)
2017 $29,700 $54,000 $18,000 (sold in following year)
2018 29,500 59,000 40,000 (sold in following year)

d. What amount of equity income should Belden recognize for the year 2018?

Answers

Answer:

Please answers below

Explanation:

1. a Equity income in 2017 = $49,525

b. Equity income in 2018 = $64,525

2. Gain on sale of investment = $10,950

3. Equity income in 2018 = $60,955

Kindly find attached breakdown of the answers above.

a. If you will be making equal deposits into a retirement account for 20 years (with each payment at the end of the year), how much must you deposit each year if the account earns 8% compounded annually and you wish the account to grow to $5,000,000 after 40 years (in time 40)?
b. How does your answer to part (a) change if the account pays interest compounded monthly at an annual rate of 8%?

Answers

Answer:

A) we can use the future value of an annuity formula:

future value = annual contribution x FV annuity factor

future value = $5,000,000FV annuity factor, 8%, 40 periods = 259.05652

annual contribution = $5,000,000 / 259.05652 = $19,300.81

B) we need to calculate the effective annual interest rate:

= (1 + 0.08/12)¹² - 1 = 8.3%

future value = annual contribution x FV annuity factor

future value = $5,000,000FV annuity factor, 8.3%, 40 periods = 280.40756

annual contribution = $5,000,000 / 280.40756 = $17,831.19

your annual contribution will decrease by $1,469.62

Prepare the journal entries to record the following transactions on Sunland Company's books using a perpetual inventory system.

a. On March 2, Splish Brothers Company sold $885,600 of merchandise to Sunland Company on account, terms 2/10, n/30. The cost of the merchandise sold was $519,500.
b. On March 6, Sunland Company returned $110,200 of the merchandise purchased on March 2. The cost of the merchandise returned was $63,000.
c. On March 12, Splish Brothers Company received the balance due from Sunland Company.

Answers

Answer:

a. March 2, 202x, merchandise purchased on account from Splish Brothers, credit terms 2/10, n/30

Dr Merchandise inventory 885,600

Cr Accounts payable 885,600

b. March 6, 202x, defective/wrong merchandise returned to Splish Brothers

Dr Accounts payable 110,200

Cr Merchandise inventory 110,200

c. March 12, 202x, paid invoice to Splish Brothers within discount term

Dr Accounts payable 775,400

Cr Cash 759,892

Cr Purchase discounts 15,508

purchase discount = purchase balance x 2% = $775,400 x 2% = $15,508

Compute Net Operating Assets Selected balance sheet and income statement information for Home Depot follows.
$ millions Jan. 31, 2016 Feb. 01, 2015
Operating assets $40,583 $38,473
Nonoperating assets 2,241 1,748
Total assets 42,824 40,221
Operating liabilities 15,018 13,527
Nonoperating liabilities 21,340 17,222
Total liabilities 36,358 30,749
Sales 88,944
Net operating profit before tax (NOPBT) 12,024
Nonoperting expense before tax 778
Tax expense 4,208
Net income 7,038
Compute net operating assets for the years ended January 31, 2016 and February 1, 2015.
2016 NOA $Answer
2015 NOA $Answer 0

Answers

Answe

English

Social Studies

Geography

World Languages

Spanish

My challenges

Answer 5 questions from any subject in 48 hours to collect 50 points

3/5

1d : 23h

Challenges to complete

Answer 10 questions from any subject in 48 hours to collect 100 points

0/10

2d : 00h

START