Answer and Explanation:
The Preparation of partial income statement for Splish is shown below:-
Splish Corporation
Partial income statement
For the year 2020
Particulars Amount
Income from operations $10,703,000
Less:
Discontinued operations:
Loss from operations $322,000
Loss from disposal $205,000 $527,000
Net income $10,176,000
Earnings per share:
Income from continuing
operations 1.07
($10,703,000 ÷ 10,000,000)
Less:
Discontinued operations, net of tax 0.05
($527,000 ÷ 10,000,000)
Net income 1.02
($10,176,000 ÷ 10,000,000)
A(n) _____ is the maximum price for a good allowed by law.
Please choose the correct answer from the following choices, and then select the submit answer button.
Answer choices
equilibrium price
price floor
price ceiling
fair price
Answer:
an price ceiling
atau equilibrium price
I'm sorry ya kalo jawaban nya salah
A selected list of accounts used by Cline Manufacturing Company follows: Code Code A. Cash F Accounts Payable B. Accounts Receivable G Factory Labor C. Raw Materials Inventory H Manufacturing Overhead D. Work In Process Inventory Cost of Goods Sold E. Finished Goods Inventory JSales Revenue Cline Manufacturing Company uses a job order system and maintains perpetual inventory records. Instructions Place the appropriate code letter in the columns indicating the appropriate account(s) to be debited and credited for the transactions listed below.Account(s) Account(s)Transactions Debited Credited1. Raw materials were purchased on account.2. Issued a check to Dixon Machine Shop for repair work on factory equipment.3. Direct materials were requisitioned for Job 280.4. Factory labor was paid as incurred.5. Recognized direct labor and indirect labor used.6. The production department requisitioned indirect materials for use in the factory.7. Overhead was applied to production based on a predetermined overhead rate of $8 per labor hour.8. Goods that were completed were transferred to finished goods.9. Goods costing $80,000 were sold for $105,000 on account.10. Paid for raw materials purchased previously on account
Answer:
1. Raw materials were purchased on account.
Account to be Debited: Raw Materials Inventory
Account to be Credited: Accounts Payable
2. Issued a check to Dixon Machine Shop for repair work on factory equipment.
Account to be Debited: Manufacturing Overhead
Account to be Credited: Cash
3. Direct materials were requisitioned for Job 280.
Account to be Debited: Work In Process Inventory Cost of Goods Sold
Account to be Credited: Raw Materials Inventory
4. Factory labor was paid as incurred.
Account to be Debited: Factory Labor
Account to be Credited: Accounts Payable
5. Recognized direct labor and indirect labor used.
Account to be Debited: Work In Process Inventory Cost of Goods Sold, Manufacturing Overhead
Account to be Credited: Accounts Payable
6. The production department requisitioned indirect materials for use in the factory.
Account to be Debited: Manufacturing Overhead
Account to be Credited: Raw Materials Inventory
7. Overhead was applied to production based on a predetermined overhead rate of $8 per labor hour.
Account to be Debited: Work In Process Inventory Cost of Goods Sold
Account to be Credited: Manufacturing Overhead
8. Goods that were completed were transferred to finished goods.
Account to be Debited: Finished Goods Inventory
Account to be Credited: Work In Process Inventory Cost of Goods Sold
9. Goods costing $80,000 were sold for $105,000 on account.
Account to be Debited: Cost of Goods Sold
Account to be Credited: Finished Goods Inventory
10. Paid for raw materials purchased previously on account
Account to be Debited: Accounts Payable
Account to be Credited: Cash
Using the column headings provided below, show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name, amount, and indicating whether it is an addition (+) or subtraction (−). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity.
1) The firm borrowed $4,000 from the bank; a short-term note was signed.
2) Merchandise inventory costing $1,500 was purchased; cash of $400 was paid and the balance is due in 30 days.
3) Employee wages of $2,000 were accrued at the end of the month.
4) Merchandise that cost $700 was sold for $900 in cash.
5) This month's rent of $1,400 was paid.
6) Revenues from services during month totaled $13,000. Of this amount, $4,000 was received in cash and the balance is expected to be received within 30 days.
7) During the month, supplies were purchased on account at a cost of $1,040, and debited into the Supplies (asset) account. A total of $800 of supplies were used during the month.
8) Interest of $480 has been earned on a note receivable, but has not yet been received.
Transaction/Adjustment Assets Liabilities Stockholders' Eguity Net Income
1
2
3
4
5
6
7
8
Answer:
I used an excel spreadsheet since there is not enough room here
Explanation:
Suppose that a firm has both fixed-rate and floating-rate debt outstanding. What effect will a decline in interest rates have on the firm's times-interest-earned ratio
Answer and Explanation:
The times interest earned ratio refers to the ration that shows a relationship between the earnings before interest and taxes and the interest payments. In the case when the rate of interest declines so the interest payment would also be reduced that result in an increment of the times earned ratio keeping the EBIT unchanged.
This represents that the company has the good capacity to coverup the interest payments
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?
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.
Suppose that, in a competitive market without government regulations, the equilibrium price of donuts is $1.50 each. Complete the following by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
a. The government has instituted a legal minimum price of $1.80 each for donuts.
b. Due to new regulations, donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so.
c. The government prohibits donut shops from selling donuts for more than $1.10 each.
Answer:
Option A is a price floor, option B is binding and option C is price ceiling.
Explanation:
It is stated that the equilibrium price of a donut is $1.50.
If the government institutes a legal minimum price of $1.80 for a donut, that would be an example of price floor because the price cannot be lower than that. $1.80 is higher than $1.50 so it serves a purpose.
Option B is binding since any donut shop that wants to pay better wages is prohibited from hiring more workers.
The government prohibiting donut shops from selling a donut for more than $1.10 is an example of floor ceiling because the price can not go higher than $1.10.
I hope this answer helps.
An individual has total assets of 120,000 and total liabilities of 80,000. what is his net worth?
Answer:
40,000
Explanation:
Net worth is the value of a person or a firm's assets minus the liabilities. It is the net value of all the assets owned by an individual or organization. Calculation of net worth is by deducting liabilities from assets,
i.e., Asset - liabilities.
For this individual, net worth will be
=120,000 - 80,000
=40,000
Suppose you’ll have an annual nominal income of $65,000 for each of the next three years, and the inflation rate is 5 percent per year.
Required:
a. Find the real value of your $65,000 salary for each of the next three years.
b. If you have a COLA in your contract, and the inflation rate is 5 percent per year, what is the real value of your salary of 70.000 for each year?
Answer:
a) real income in one year = $65,000/1.05 = $61,904.76
real income in two year = $65,000/1.05² = $58,956.92
real income in three year = $65,000/1.05³ = $56,149.44
b) if you have a COLA agreement, then your salary will adjust to inflation. This means that your real salary will remain the same during the 3 years = $70,000 per year.
In this case, your nominal salary will increase by 5% each year, but your salary will remain equal.
How much would a worker have to be paid per hour in 2016 to keep her real wage the same as in 1980 if she earned $10 per hour in 1980
Answer:
In order to calculate this question we need the CPI for both 1980 and 2016. I looked for them on the internet and found that the CPI for 1980 was 82.4 and the CPI for 2016 is 240.
This means that in real dollars (dollars adjusted to inflation), $10 back in 1980 were $10/0.824 = $12.1359
In order to convert 1980 real dollars to nominal dollars in 2016, we have to multiply $12.1359 x 2.4 = $29.1262 ≈ $29.13.
This means that $10 back in 1980 could purchase the same amount of goods or services that $29.13 dollars purchased in 2016.
Equity Method Investment with Basis Differences Several Years LaterSaxton Corporation purchased 25 percent of Taylor Company's voting stock on January 1, 2013, for $3 million in cash. At the date of acquisition, Taylor reported its total assets at $60 million and its total liabilities at $56 million. Investigation revealed that Taylor's plant and equipment (15-year life) was overvalued by $1.8 million and it had an unreported customer database (2-year life) valued at $500,000. Taylor declares and pays $100,000 in dividends and reports net income of $250,000 in 2016.RequiredPrepare the necessary journal entries on Saxton's books to report the above information for 2016 assuming Saxton uses the equity method to report its investment.Enter answers in thousands. For example, $1 million is $1,000 and $100,000 is $100.Calculation of 2016 Equity in Taylor's Net Income:Saxton's share of Taylor's reported income $Answer+/- Revaluation adjustments AnswerEquity in net income of Taylor $Answer General JournalDate Description Debit Credit1/1/16 AnswerCashInvestment in TaylorEquity in net income of Taylor Answer Answer AnswerCashInvestment in TaylorEquity in net income of Taylor Answer Answer12/31/16 AnswerCashInvestment in TaylorEquity in net income of Taylor Answer Answer AnswerCashInvestment in TaylorEquity in net income of Taylor Answer Answer
Answer:
Calculation of Saxton's equity in Taylor's net Income
Saxton's share of Taylor reported Income $62,500
($250,000 * 25%)
Less: Revaluation adjustment $30,000
($1,800,000/15)*25%
Equity in net income of Taylor $32,500
Saxton's equity in Taylor's net income is $32,500
Preparation of the required Journal entries
Account Titles and Explanation Debit Credit
Cash ($100,000*25%) $25,000
Investment in Taylor $25,000
(To record receipt of dividends)
Investment in Taylor $32,500
Equity in Net Income of Taylor $32,500
(To record earnings of the investee)
Life, Inc., experienced the following events in 2018, its first year of operation.
1. Performed counseling services for $22,000 cash.
2. On February 1, 2018, paid $18,000 cash to rent office space for the coming year
3. Adjusted the accounts to reflect the amount of rent used during the year.
Required:
Based on this information alone:
A. Record the events under an accounting equation.
B. Prepare an income statement, balance sheet, and statement of cash flows for the 2016 accounting period.
C. Ignoring all other future events, what is the amount of rent expense that would be recognized in 2017?
Answer:
Life, Inc.
A. Recording the events under the accounting equation:
Debit Cash Account (Assets) $22,000
Credit Service Revenue (Equity) $22,000
To record the receipt of cash for counseling services performed.
Debit Prepaid Rent (Assets) $18,000
Credit Cash Account (Assets) $18,000
To record the payment of cash for office space.
Debit Rent Expense (Equity) $16,500
Credit Prepaid Rent (Assets) $16,500
To record the rent expense for the year.
B. Life, Inc. Income Statement for the year ended December 31, 2018:
Service Revenue $22,000
Rent expense 16,500
Net Income $5,500
C. The amount of rent expense to be recognized in 2019 is $18,000.
Explanation:
a) Data and Calculations:
Service Revenue = $22,000
Prepaid Rent = $18,000 (from February 1, 2018 to January 31, 2019)
Rent Expense for 2018 = $16,500 ($18,000 * 11/12)
b) The accounting equation is Assets = Liabilities + Equity. The equation shows that every business transaction affects the assets, liabilities, and equity. This is why it is always in balance with every given transaction.
Hart, Attorney at Law, experienced the following transactions in 2016, the first year of operations: 1.Accepted $36,000 on April 1, 2016, as a retainer for services to be performed evenly over the next 12 months. 2. Performed legal services for cash of $54,000. 3. Purchased $2,800 of office supplies on account. 4. Paid $2,400 of the amount due on accounts payable. 5. Paid a cash dividend to the stockholders of $5,000. 6. Paid cash for operating expenses of $31,000. 7. Determined that at the end of the accounting period $200 of office supplies remained on hand. 8. On December 31, 2016, recognized the revenue that had been earned for services performed in accordance with Transaction 1. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.)
Answer:
Find attached the effects of the events on the financial statements using a horizontal statements model.
No. 7 is -$2,600 because only $200 remains from the Material purchase in No. 2.
No. 8. April to December is 9 months so 9 months of the service revenue would have been earned = 9/12 * 36,000 = $27,000.
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools:_____.
Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Labor-related Direct labor-hours $ 269,100 29,900 DLHs Purchase orders Number of orders $ 11,000 220 orders Parts management Number of part types $ 78,440 106 part types Board etching Number of boards $ 85,050 1,890 boards General factory Machine-hours $ 242,400 20,200 MHs
Required:
1. Compute the activity rate for each of the activity cost pools.
2. The expected activity for the year was distributed among the company’s four products as follows:_________.
Expected Activity Activity Cost Pool Product A Product B Product C Product D Labor-related (DLHs) 7,500 13,400 3,800 5,200 Purchase orders (orders) 66 30 32 92 Parts management (part types) 29 19 47 11 Board etching (boards) 580 750 560 0 General factory (MHs) 2,600 7,300 3,700 6,600 Using the ABC data, determine the total amount of overhead cost assigned to each product.
Answer:
Activity Activity Expected Expected
cost pool measure overhead cost activity
Labor-related Direct labor-hours $269,100 29,900 DLHs
Purchase orders Number of orders $11,000 220 orders
Parts management # of part types $78,440 106 part types
Board etching # of boards $85,050 1,890 boards
General factory Machine-hours $242,400 20,200 MHs
1) cost per direct labor hour = $269,100 / 29,900 = $9
cost per order = $11,000 / 220 = $50
cost per number of parts = $78,440 / 106 = $740
cost per # of boards = $85,050 / 1,890 = $45
cost per machine hour = $242,400 / 20,200 = $12
Expected Activity
Activity Cost Pool Product A Product B Product C Product D
Labor-related (DLHs) 7,500 13,400 3,800 5,200
Purchase orders (orders) 66 30 32 92
Parts management 29 19 47 11
Board etching (boards) 580 750 560 0
General factory (MHs) 2,600 7,300 3,700 6,600
2) Using the ABC data, determine the total amount of overhead cost assigned to each product.
overhead cost assign to product A = ($9 x 7,500) + ($50 x 66) + ($740 x 29) + ($45 x 580) + ($12 x 2,600) = $149,560
overhead cost assign to product B = ($9 x 13,400) + ($50 x 30) + ($740 x 19) + ($45 x 750) + ($12 x 7,300) = $257,510
overhead cost assign to product C = ($9 x 3,800) + ($50 x 32) + ($740 x 47) + ($45 x 560) + ($12 x 3,700) = $140,180
overhead cost assign to product D = ($9 x 5,200) + ($50 x 92) + ($740 x 11) + ($45 x 0) + ($12 x 6,600) = $138,740
Yancey Productions is a film studio that uses a job-order costing system. The company’s direct materials consist of items such as costumes and props. Its direct labor includes each film’s actors, directors, and extras. The company’s overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates:
Direct labor-dollars to support all productions $8,000,000
Fixed overhead cost $4,800,000
Variable overhead cost per direct labor-dollar $0.05
Required:
1. Compute the pre-determined overhead rate.
2. During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:
Direct materials $1,259,000
Direct labor cost $2,400,000
Compute the total job cost for this particular film.
Answer:
Yancey Productions
1. Predetermined overhead rate = $0.65
2. Computation of the total job cost for "You Can Say That Again:"
Direct materials $1,259,000
Direct labor cost $2,400,000
Overhead cost $1,560,000 ($0.65 * $2,400,000)
Total job cost = $5,219,000
Explanation:
a) Estimates:
Direct labor-dollars to support all productions $8,000,000
Fixed overhead cost $4,800,000
Variable overhead cost per direct labor-dollar $0.05
b) Computation of total estimated overhead costs:
Fixed overhead cost = $4,800,000
Variable overhead = 400,000 ($0.05 * $8,000,000 )
Total overhead cost = $5,200,000
c) Computation of predetermined overhead rate:
Predetermined overhead rate = Estimated overhead costs divided by direct labor-dollars
= $5,200,000/$8,000,000
= $0.65
What is the most popular method of filing in Nepal?
why?
Answer:
OK this is your ans to the ques
The most popular method of filing in Nepal is the Electronic Filing System. This is because it is faster, more convenient, and more efficient than traditional paper filing.
What is the most popular method of filing in Nepal?
The most popular method of filing in Nepal is paper-based filing.
This is because electronic filing systems are not widely used or accessible in many parts of the country, particularly in rural areas where there may not be reliable internet access or electricity.
Additionally, many people in Nepal may not have access to computers or other electronic devices, so paper-based filing is often seen as the most practical and accessible method.
However, the government of Nepal has been working to promote the use of electronic filing systems in recent years, particularly for businesses and other organizations, as part of its efforts to modernize and streamline administrative processes.
Learn more about filing in Nepal here:
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Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools:
Activity Cost Pool Estimated Overhead Cost Expected Activity
Labor-related $16,800 2,000 direct labor-hours
Machine-related $16,000 8,000 machine-hours
Machine setups $30,400 800 setups
Production orders $6,600 200 orders
Product testing $12,000 500 tests
Packaging $51,000 3,400 packages
General factory $55,600 2,000 direct labor-hours
1. Compute the activity rate for each activity cost pool.
2. Compute the company's pre-determined overhead rate, assuming that the company uses a single plantwide pre-determined overhead rate based on direct labor-hours.
Answer:
Results are below.
Explanation:
To calculate the activity rate for each activity cost pool, we need to use the following formula on each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Labor-related= 16,800/2,000= $8.4 per direct labor hour
Machine-related= 16,000/8,000= $2 per machine-hour
Machine setups= 30,400/800= $38 per setup
Production orders= 6,600/200= $33 per order
Product testing= 12,000/500= $24 per test
Packaging= 51,000/3,400= $15 per package
General factory= 55,600/2,000= $27.8 per direct labor-hour
Now, the plantwide predetermined factory overhead:
Total overhead= $188,400
Total direct labor hours= 2,000
Predetermined manufacturing overhead rate= 188,400/2,000
Predetermined manufacturing overhead rate= $94.2 per direct labor hour
Manta Ray Company manufactures diving masks with a variable cost of $25. The masks sell for $34. Budgeted fixed manufacturing overhead for the most recent year was $792,000. Actual production was equal to planned production.
Required: Under each of the following conditions, state (a) whether operating income is higher under variable or absorption costing and (b) the amount of the difference in reported operating income under the two methods. Treat each condition as an independent case.
1. Production ............................................... 110,000 units
Sales ........................................................ 108,000 units
2. Production ............................................... 90,000 units
Sales ........................................................ 95,000 units
3. Production ............................................... 79,200 units
Sales ........................................................ 79,200 units
Answer:
(First Case) Absorption cost income is higher by 14,200 dollars
(Second Case) variable costing income is higher by 44,000 dollars
(Third Case) they are equal as produciton = sales
Explanation:
the difference arises when production differs with sales.
that's because variable will consider the entire amount of fixed cost as cost of the period while, absorption will capitalizethe fixed cost through inventory. If production matches sales then in both cases the fixed cost are entire expressed in the income statement. If they don't the difference is the difference times unit fixed cost.
(First Case)
fixed cost per unit $792,000 / 110,000 = $7.2
difference (110,000 - 108,000) x $7.2 = $14,200
(Second Case)
fixed cost per unit: 792,000 / 110,000 = $8.8
difference (90,000 - 95,000) x $8.8 = $44,000
(Third Case)
They match thus, no difference arises.
Sportly, Inc. completed Job No. B14 during 2012. The job cost sheet listed the following:Direct materials $55,000Direct labor $30,000Manufacturing overhead applied $20,000Units produced 3,000 unitsUnits sold 1,800 unitsHow much is the cost of the finished goods on hand from this job? a.$51,000 b.$105,000 c.$42,000 d.$63,000
Answer:
Ending inventory= $42,000
Explanation:
Giving the following information:
Direct materials $55,000
Direct labor $30,000
Manufacturing overhead applied $20,000
Units produced 3,000 units
Units sold 1,800 units
First, we need to calculate the total cost:
Total cost= 55,000 + 30,000 + 20,000= $105,000
Now, the unitary cost:
Unitary cost= 105,000/3,000= $35
Finally, the ending inventory:
Ending inventory= 1,200*35= $42,000
Key figures for the recent two years of both Apple and Google follow. Apple Google $ millions Current Year Prior Year Current Year Prior Year Net income $ 48,351 $ 45,687 $ 12,662 $ 19,478 Net sales 229,234 215,639 110,855 90,272 Current assets 128,645 106,869 124,308 105,408 Current liabilities 100,814 79,006 24,183 16,756 Required: 1. Compute profit margins for (a) Apple and (b) Google for the two years of data reported above. 2. In the current year, which company is more successful on the basis of profit margin? 3. Compute current ratios for (a) Apple and (b) Google for the two years reported above. 4. In the current year, which company has the better ability to pay short-term obligations according to the current ratio?
Answer:
Please see solution below
Explanation:
1. Profit margins :
= Net income / sales
Current year.
• Apple
= (48,351/229,234) × 100
= 21.1%
= (12,662/110,855) ×100
= 11.4%
Prior year
• Apple
= (45,687/215,639) × 100
= 21.2%
= (19,478/90,272) × 100
= 21.6%
2. Apple is more successful . This is because the profit margin of Apple is higher than the profit margin of Google in the current year.
3. Current ratio
=Current asset / Current liabilities
Current year
• Apple
= 128,645/100,814
= 1.28 times
= 124,308/24,183
= 5.14 times
Prior year
• Apple
= 106,869/79,006
= 1.35 times
= 105,408/16,756
= 6.29 times
4. Google, because it has the highest current ratio, compared to Apple, in the current year.
Greater indirect costs are associated with:
a. Specialized engineering drawings
b. Quality specifications and testing
c. Inventoried materials and material control systems
d. All of these answers are correct.
Answer:
d. All of these answers are correct.
Explanation:
Indirect cost are cost that are not directly associated to the cost of a particular project. It could be overhead cost or subsidiary cost.example of indirect cost are; personel cost, rent, utilities cost and so on.
It should be noted that Greater indirect costs are associated with Quality specifications and testing,Inventoried materials and material control systems as well as Specialized engineering drawings.
Zander Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month. In July the company completed job F21X that consisted of 29,850 units of one of the company's standard products. No other jobs were in process during the month. The job cost sheet for job F21X shows the following costs: Beginning balance $80,595 Direct materials $937,290 Direct labor cost $316,410 Manufacturing overhead cost applied $543,270 During the month, the actual manufacturing overhead cost incurred was $537,300 and 19,900 completed units from job F21X were sold. No other products were sold during the month. The unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for July is closest to:_______.
Answer:
The answer is "$ 1,251,710".
Explanation:
Formula:[tex]\text{Overall cost for Job F21X completed during the month = } \\\text{Beginning balance + Direct materials + Direct labor + Manufacturing overhead applied }[/tex]
[tex]= \$ 80,595 + \$ 937,290 +\$ 316,410 + \$ 543,270 \\\\= \$ 1,877,565[/tex]
Complete unit in Job = 29,850 units
Per unit cost units
[tex]= \$ 62.9[/tex] per unit
Sold units= 19,900 units
Sold goods cost [tex]= 19,900 \times \$ 62.9[/tex]
[tex]= \$ 1,251,710[/tex]
Bonita Marina has 300 available slips that rent for $900 per season. Payments must be made in full by the start of the boating season, April 1, 2021. The boating season ends October 31, and the marina has a December 31 year-end. Slips for future seasons may be reserved if paid for by December 31, 2021. Under a new policy, if payment for 2022 season slips is made by December 31, 2021, a 5% discount is allowed. If payment for 2023 season slips is made by December 31, 2021, renters get a 20% discount (this promotion hopefully will provide cash flow for major dock repairs).
On December 31, 2017, all 300 slips for the 2018 season were rented at full price. On December 31, 2018, 240 slips were reserved and paid for the 2019 boating season, and 56 slips were reserved and paid for the 2020 boating season.
Prepare the appropriate journal entries for December 31, 2017, and December 31, 2018.
Answer and Explanation:
The Journal entry is shown below:-
1. Cash Dr, $270,000 (300 × $900)
To Unearned rent revenue $270,000
(Being cash receipts is recorded)
2. Unearned rent revenue $270,000
To rent revenue $270,000
(being unearned rent revenue is recorded)
3. Cash Dr, $205,200 (240 × $900 * 95%)
To Unearned rent revenue $205,200
(Being cash receipts is recorded)
4. Cash Dr, $40,320 (56 900 80%)
To Unearned rent revenue $40,320
(being unearned rent revenue is recorded)
Managerial accounting differs from financial accounting in several areas. Specify whether each of the following characteristics relates to managerial accounting or financial accounting. a. Reports are usually prepared quarterly and annually. ▼ b. Information is verified by external auditors. ▼ Financial accounting Managerial accounting c. Focus is on the past. ▼ Financial accounting Managerial accounting d. Main characteristic of information is that it must be relevant. ▼ Financial accounting Managerial accounting e. Reports tend to be prepared for the parts of the organization rather than the whole organization. ▼ Financial accounting Managerial accounting f. Primary users are internal (i.e., company managers). ▼ Financial accounting Managerial accounting g. It is governed by Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). ▼ Financial accounting Managerial accounting h. The primary characteristics of information are that it must be reliable and objective. ▼ Financial accounting Managerial accounting i. Reports are prepared as needed. ▼ Financial accounting Managerial accounting j. It is not governed by legal requirements. ▼ Financial accounting Managerial accounting k. Primary users are external (i.e., creditors, investors). ▼ Financial accounting Managerial accounting l. Focus is on the future. ▼ Financial accounting Managerial accounting m. Reporting is based mainly on the company as a whole.
Answer:
Financial accounting encompasses established policies, rules and standards of recording and reporting of financial activities to achieve established plans and verification of results by auditors to obtain true monetary position of the organization for gaining stakeholder's and external users interests.
Managerial accounting can be defined as an internal process which revolves around monetary and non-monetary affairs without outside influence of auditing standards or accounting constraints.
a. Reports are usually prepared quarterly and annually
Account Relation: Financial accounting
b. Information is verified by external auditors.
Account Relation: Financial accounting
c. Focus is on the past.
Account Relation: Financial accounting
d. Main characteristic of information is that it must be relevant.
Account Relation: Managerial accounting
e. Reports tend to be prepared for the parts of the organization rather than the whole organization.
Account Relation: Managerial accounting
f. Primary users are internal (i.e, company managers).
Account Relation: Financial accounting
i. Reports are prepared as needed.
Account Relation: Financial accounting
j. The primary characteristics of information are that it must be reliable and objective
Account Relation: Financial accounting
k. Primary users are external (i.e., creditors, investors)
Account Relation: Financial accounting
l. Focus is on the future.
Account Relation: Managerial accounting
m. Reporting is based mainly on the company as a whole.
Account Relation: Financial accounting
Last year, XYZ Corporation incurred the following expenditures in the development of a new plant process:
Salaries $250,000
Materials 90,000
Utilities 20,000
Quality control testing costs 40,000
Management study costs 5,000
Depreciation of equipment 18,000
During the current year, benefits from the project began being realized in May. If XYZ Corporation elects a 60 month deferral and amortization period, determine the amount of the deduction for the current year.
Answer:
$50,400
Explanation:
Amount
Salary $250,000
Materials $90,000
Utilities $20,000
Depreciation $18,000
Research and experimental costs $378,000
Current deduction = $378,000/60 * 8(May-December)
Current deduction = $50,400
You have been asked to estimate the beta for a large South Korean company, with large holdings in steel and financial services. A regression of stock returns against the local market index yields a beta of 1.10, but the firm is 15% of the index. You have collected the average betas for global companies in each of the sectors, as well as the average debt equity ratios in each sector:
Setor Average Regression Beta Average D/E ratio
Steel 1.18 30%
Financial
Services 1.14 70%
The average tax rate for these industries is 40%.
In the most recent period, the company you are analyzing earned 70% of its operating income from steel and 30% from financial services. The firm also had a debt/equity ratio of 150%, and a tax rate of 30%. Estimate the levered beta for the company.
Answer:
The levered beta for the company is 1.93.
Explanation:
Levered beta for the company = (Weight of steel business*levered beta of steel business) + (Weight of financial services business*levered beta of financial services business)
Levered beta of steel business = Unlevered beta of steel sector*[1+(1 - firm's tax rate)*(firm's debt/equity ratio)
levered beta of financial services business = Unlevered beta of financial services sector*[1+(1 - firm's tax rate)*(firm's debt/equity ratio)
Unlevered beta of steel sector = Current beta of steel sector/[1+(1 - avg. tax rate of firms in the sector)*(Avg. debt/equity ratio of the sector)
Unlevered beta of steel sector = 1.18/[1+((1-0.4)*0.3)]
Unlevered beta of steel sector = 1.18/[1+(0.6*0.3)]
Unlevered beta of steel sector = 1.18/(1+0.18)
Unlevered beta of steel sector = 1.18/1.18
Unlevered beta of steel sector = 1
Levered beta of steel business = 1*[1+((1-0.3)*1.5)]
Levered beta of steel business = 1*[1+(0.7*1.5)]
Levered beta of steel business = 1*(1+1.05)
Levered beta of steel business = 1*2.05
Levered beta of steel business = 2.05
Unlevered beta of financial services sector = Current beta of financial services sector/[1+(1 - avg. tax rate of firms in the sector)*(Avg. debt/equity ratio of the sector)
Unlevered beta of financial services sector = 1.14/[1+((1-0.4)*0.7)]
Unlevered beta of financial services sector =1.14/[1+(0.6*0.7)]
Unlevered beta of financial services sector = 1.14/(1+0.42)
Unlevered beta of financial services sector = 1.14/1.42
Unlevered beta of financial services sector = 0.80
Levered beta of financial services business = 0.8*[1+((1-0.3)*1.5)] = 0.8*[1+(0.7*1.5)] = 0.8*(1+1.05) = 0.8*2.05 = 1.64
Levered beta for the company = (0.7*2.05) + (0.3*1.64)
Levered beta for the company = 1.44 + 0.49
Levered beta for the company = 1.93
Hence, the levered beta for the company is 1.93.
[The following information applies to the questions displayed below.]Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit Annual Production Rims 0.30 26,000 units Posts 0.50 70,000 units Additional information about the company follows: Rims require $15 in direct materials per unit, and Posts require $11. The direct labor wage rate is $15 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Activity Measure Estimated Overhead Cost Rims Posts Total Machine setups Number of setups $ 32,900 60 140 200 Special processing Machine-hours $ 114,800 4,000 0 4,000 General factory Direct labor-hours $ 1,404,000 6,000 72,000 78,000Required:1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Answer:
1) activity rate per:
machine setup = $164.50 per setupspecial processing = $28.70 per machine hourgeneral factory = $18 per direct labor hour2) unit cost per product
total cost per rim = $28.45total cost per post = $37.34Explanation:
Direct Labor-Hours per unit Annual Production Total
Rims 0.30 26,000 units 7,800
Posts 0.50 70,000 units 35,000
Rims require $15 in direct materials per unit, and Posts require $11.
The direct labor wage rate is $15 per hour.
The ABC system has the following activity cost pools:
Estimated Activity
Activity Activity Estimated Rims Posts Total
cost pool measure OH cost
Machine setups # of setups $32,900 60 140 200
Special processing machine H $114,800 4,000 0 4,000
General factory direct LH $1,404,000 6,000 72,000 78,000
activity rate per:
machine setup = $32,900 / 200 = $164.50 per setup
special processing = $114,800 / 4,000 = $28.70 per machine hour
general factory = $1,404,000 / 78,000 = $18 per direct labor hour
total machine setup costs assigned to rims = $9,870 / 26,000 units = $0.38 per unit
total special processing costs assigned to rims = $114,800 / 26,000 units = $4.42 per unit
total general factory costs assigned to rims = $108,000 / 26,000 units = $4.15 per unit
direct labor cost per unit = 0.3 x $15 = $4.50
direct materials = $15
total cost per rim = $28.45
total machine setup costs assigned to posts = $23,030 / 70,000 units = $0.33 per unit
total special processing costs assigned to posts = $0 / 70,000 units = $0 per unit
total general factory costs assigned to posts = $1,296,000 / 70,000 units = $18.51 per unit
direct labor cost per unit = 0.5 x $15 = $7.50
direct materials = $11
total cost per post = $37.34
Which of the following corectly illustrates how prices serve as signals to consumers
Answer:
Most word-processing programs allow the user to select a command from the menu to insert a graphic. Clicks in the document where you want your file, choose insert and picture click from file select the image the press open and you picture will become inserted in to the document.
Hope this helps!!! Brainlist???
We are evaluating a project that costs $864,000, has an eight-year life, and has no salvage value. Assume that de-preciation is straight-line to zero over the life of the project. Sales are projected at 71,000 units per year. Price per unit is $49, variable cost per unit is $33, and fixed costs are $765,000 per year. The tax rate is 35 percent, and we require a return of 10 percent on this project.
Required:
a. Calculate the accounting break-even point. What is the degree of operating leverage at the accounting break-even point?
b. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.
c. What is the sensitivity of OCF to changes in the variable cost figure? Explain what your answer tells you about a $1 decrease in estimated variable costs.
Answer:
Depreciation = $864,000/8 = $108,000 per year
a. Accounting breakeven =
= ($765,000 + 108,000)/($49 - $33)
= 54,563 units
b&c. OCF base= [(P – v)Q – FC](1 – tc) + tc D
OCF base= [($49 – 33)(71,000) – $765,000](0.65) + 0.35($108,000)
OCF base=[$1,136,000-$765,000]0.65 +$37,800
OCF base= [$371,000] 0.65 +$37,800
OCF base=$241,150+$37,800
OCF base=$278,950
Calculating the NPV using our base-case projections. Also, no salvage value, hence the NPV=
NPV(base) = –$864,000+ $278,950 (PVIFA10%,8)
NPV(base) = -864,000+$278,950 x 5.335
NPV(base) = -864,000+ 1,488,178
NPV(base) = $624,178
We will use sales of 72,000 units in calculating the sensitivity of the NPV
OCF new = [($37 - 21)(72,000) - $765,000](0.65) + 0.35(108,000)
OCF new = [ $1,152,000-$765,000]0.65+0.35 (108,000)
OCF new = [387,000] 0.65 + $37,800
OCF new = $251,550+37,800
OCF new = $289,350
NPVnew= –$864,000 + $289,350(PVIFA15%,8)
NPVnew=-$864,000+$289,350 x 5.335
NPVnew=- $679,661
So, the change in NPV for every unit change in sales is:
DNPV/DS = ($624,178 – 679,661)/(71,000 – 72,000)
NPV/DS = +$55.48
If sales were to drop by 500 units, then NPV would drop by:
NPV drop = $55.48(500)
NPV drop = $27,742.
levon files a suit against manufacturing corporation the defendant believes that even if the plaintiff manufactoring corporation should
Answer: d. file a motion to dismiss.
Explanation:
A Motion to Dismiss can be filed by either the Plaintiff or the Defendant but is usually done by the defendant when they believe that there is no validity to the claims of the plaintiff.
In this instance, Manufacturing Corporation does not believe that it is liable for the claims made by the Plaintiff which means they are question the validity of those claims. They can therefore file a motion to dismiss the case.
After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $19,300 price, but financing through the dealer is no bargain. He has $3,000 cash for a down payment, so he needs an $16,300 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $16,300 for a period of four years at an add-on interest rate of 10 percent.1. What is the total interest on Richard's loan? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
2. What is the total cost of the car? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
3. What is the monthly payment? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
4. What is the annual percentage rate (APR)? (Do not round your intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Answer:
Explanation:
Price of car = $19300
Down payment = $3000
Loan. Amount = $16300
Number of years = 4
Rate = 10%
1. What is the total interest on Richard's loan?
Simple interest = PRT/100
where p = principal = 16300
R = rate = 10%
T = Time = 4 years
Simple interest= (16300 × 10 × 4)/100
= $6520
2. What is the total cost of the car?
Total cost = Price + Interest
= 19300 + 6520
= $25820
3. What is the monthly payment?
This will be calculated as:
= (Loan amount + Interest)/Number of months
= (16300 + 6520)/4 years
= (16300 + 6520)/48
= 22820/48
= $475.41667
4. What is the annual percentage rate (APR)?
APR = (2×n×l)/P(N+1)
where,
n = number of payments period in a year.
I = Interest
P= Loan amount
N = Total number of payments
APR = (2×12×6520)/16300(48+1)
= 156480/16300(49)
= 156480/798700
= 0.1959
= 19.59%