The adjusting entry for uncollectible accounts using the percentage-of-credit-sales method is necessary in order to properly reflect the estimated amount of uncollectible accounts in the financial statements of Suzuki Supply. This method involves calculating the estimated percentage of credit sales that are expected to be uncollectible, and then recording an adjusting entry to reflect this estimate.
In this case, Suzuki Supply reports credit sales of $260,000 for 2021 and estimates that 3% of these sales will not be collected. Therefore, the estimated amount of uncollectible accounts is $7,800 (3% of $260,000). The adjusting entry to record this estimate would be to debit the allowance for uncollectible accounts account by $6,700 ($7,800 - $1,100) and credit the bad debt expense account by $6,700.
This adjusting entry will increase the allowance for uncollectible accounts, which is a contra-asset account, and reduce the net accounts receivable balance. The bad debt expense account is an expense account that reflects the estimated cost of uncollectible accounts. By recording this adjusting entry, Suzuki Supply will have a more accurate representation of their accounts receivable and bad debt expense in their financial statements.
It is important for companies to estimate and record uncollectible accounts accurately, as it can have a significant impact on their financial statements and overall financial health. By using the percentage-of-credit-sales method, Suzuki Supply can estimate the amount of uncollectible accounts and ensure that their financial statements accurately reflect their business operations.
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Jones Company developed the following static budget at the beginning of the company's accounting period: Revenue (9,600 units) $ 19,200 Variable costs 4,800 Contribution margin $ 14,400 Fixed costs 4,800 Net income $ 9,600 If actual production totals 10,000 units, the flexible budget would show total costs of: Multiple Choice $9,900. $19,600. None of these answers are correct. $9,800
If actual production totals 10,000 units, the flexible budget would show total costs of $24,800. The correct answer is option d.
The total revenue in the static budget is $19,200 for 9,600 units, so the revenue per unit is $2. The flexible budget needs to be prepared based on the actual production, which is 10,000 units.
Variable costs are also based on the actual production, so the total variable costs for 10,000 units can be calculated as follows:
Total variable costs = variable cost per unit x actual production
Total variable costs = $2 x 10,000
Total variable costs = $20,000
The contribution margin can be calculated by subtracting the total variable costs from the total revenue:
Contribution margin = Total revenue - Total variable costs
Contribution margin = $20,000 - $4,800
Contribution margin = $15,200
Fixed costs do not change with the level of production and remain the same as in the static budget, which is $4,800.
Therefore, the flexible budget for 10,000 units would show total costs of:
Total costs = Variable costs + Fixed costs
Total costs = $20,000 + $4,800
Total costs = $24,800
The correct answer is $24,800. The correct answer is option d.
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Complete Question
Jones Company developed the following static budget at the beginning of the company's accounting period: Revenue (9,600 units) $ 19,200 Variable costs 4,800 Contribution margin $ 14,400 Fixed costs 4,800 Net income $ 9,600 If actual production totals 10,000 units, the flexible budget would show total costs of: Multiple Choice
a. $9,900.
b. $19,600.
c. None of these answers are correct.
d. $24,800
darrell owns a furniture store. his total costs are $225,000 per year, and his fixed costs are $150,000 per year. this means that his variable costs are:
This means that Darrell's variable costs are $75,000 per year.
Darrell's total costs are made up of two components: fixed costs and variable costs. Fixed costs are expenses that do not change regardless of how much furniture Darrell sells.
In this case, Darrell's fixed costs are $150,000 per year. Variable costs, on the other hand, are expenses that change with the level of sales. These costs increase as Darrell sells more furniture and decrease as he sells less.
To calculate Darrell's variable costs, we need to subtract his fixed costs from his total costs. So, variable costs can be calculated as:
Variable costs = Total costs - Fixed costs
= $225,000 - $150,000
= $75,000 per year
These costs could include expenses like raw materials, labor costs, and other expenses that are directly related to the production and sale of furniture.
By understanding the breakdown of his costs, Darrell can make better decisions about pricing and production to maximize his profits.
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if the projects were independent, which project(s) would be accepted according to the irr method? -select- if the projects were mutually exclusive, which project(s) would be accepted according to the irr method? -select- could there be a conflict with project acceptance between the npv and irr approaches when projects are mutually exclusive? -select-
IRR for two projects for Bellinger Industries, and we found that Project A has an IRR of approximately 17.65% while Project B has an IRR of approximately 23.07%.
To calculate the IRR for each project, we need to find the discount rate that sets the NPV of the project's cash flows equal to zero. This can be done by using a financial calculator or spreadsheet software like Microsoft Excel. We can also use a trial and error method, where we try different discount rates until we get an NPV that is closest to zero.
For Project A, we can use the formula:
NPV = -1,110 + (790/(1+r)) + (350/(1+r)²) + (250/(1+r)³) + (300/(1+r)⁴) = 0
where r is the IRR we're trying to find. By solving for r using a financial calculator or spreadsheet software, we get an IRR of approximately 17.65%.
For Project B, we can use the same formula:
NPV = -1,110 + (390/(1+r)¹) + (285/(1+r)²) + (400/(1+r)³) + (750/(1+r)⁴) = 0
Again, by solving for r using a financial calculator or spreadsheet software, we get an IRR of approximately 23.07%.
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Complete Question:
Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 12%. 0 2 3 4 Project -1,110 790 350 250 300 Project -1,110 390 285 400 750
What is Project A's IRR? Do not round intermediate calculations. Round your answer to two decimal places.
What is Project B's IRR? Do not round intermediate calculations. Round your answer to two decimal places.
Suppose that the current service level is 70%. What does it mean? Choose the best answer.
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a The number of cancellations is sufficient for total overbookings with probability 70%.
b The number of cancellations is sufficient for total overbookings with probability 30%.
c The number of overbookings is sufficient for total cancellations with probability 70%.
d The number of overbookings is sufficient for total cancellations with probability 30%.
e None of the above is correct.
This means that the number of cancellations is sufficient for total overbookings with probability 30%.
Therefore, option b - "The number of cancellations is sufficient for total overbookings with probability 30%" - is the correct answer. What is service level? The service level is a performance measurement indicator that shows how successful a company is at delivering a service to its clients. It is measured by dividing the number of requests handled within a given period by the number of requests received during the same period. The service level is used to assess the company's operational efficiency and performance.
A service level of 70% indicates that 70% of the clients' requests have been successfully processed, and the remaining 30% have not been completed. Therefore, 30% of overbookings are necessary for the business to be able to meet its commitments.
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Both employer and employee are responsible for paying a set percentage of the employee's earnings. What is the name of this payroll tax? Select one: a. Federal Insurance Contributions Act withholdings b. Family Medical Leave Act withholdings c. Employee Retirement Income Security Act withholdings d. Consolidated Omnibus Budget Reconciliation Act withholdings
The payroll tax that is responsible for the employer and employee paying a set percentage of the employee's earnings is known as "Federal Insurance Contributions Act withholdings". Option A is the answer.
The Federal Insurance Contributions Act (FICA) is a payroll tax levied on both workers and employers in the United States to fund Social Security and Medicare programs. The amount of FICA tax withheld from an employee's paycheck is determined by the employee's income and the current FICA tax rate.
The employer and employee each contribute half of the total FICA tax, which is a set percentage of the employee's gross earnings.The Federal Insurance Contributions Act withholdings option (a) is the correct answer to the given question.
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On has just received information that there were increases in both accounts payable and accounts receivable for $12,000 and $15,000, respectively. the net income is $230,000. what is the net cash provided by operating activities
The net cash provided by operating activities: is $227,000.
To calculate the net cash provided by operating activities, we will start with the net income of $230,000. Then, we will adjust for changes in accounts payable and accounts receivable. The increase in accounts payable represents an increase in cash, as the company has not yet paid for goods or services. On the other hand, the increase in accounts receivable represents a decrease in cash, as the company has not yet collected payments from customers.
Therefore, to find the net cash provided by operating activities, we will add the increase in accounts payable ($12,000) to the net income ($230,000) and subtract the increase in accounts receivable ($15,000):
Net cash provided by operating activities = $230,000 + $12,000 - $15,000 = $227,000.
In conclusion, the net cash provided by operating activities, given the provided information, is $227,000.
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a franchise is able to control costs because: a. franchisees are locked into long-term contracts with vendors. b. franchise networks have greater buying power. c. suppliers prefer to sell to franchises. d. franchises generally pay only minimum wa
A franchise is able to control costs because franchise networks have greater buying power. The correct answer is b.
Franchises are able to leverage their brand recognition and collective purchasing power to negotiate better deals with suppliers, which allows them to control costs. Since franchisors often have a large network of franchisees, they can negotiate bulk pricing and other discounts with suppliers that would not be available to individual small businesses.
This can result in significant savings on inventory and supplies for franchisees.
In addition to purchasing power, franchises also benefit from standardized operating procedures and centralized management, which helps to streamline operations and reduce costs.
Franchisors provide training and support to franchisees to ensure that they are following the same procedures and using the same equipment and supplies, which helps to eliminate variability and increase efficiency.
Overall, franchises are able to control costs by leveraging the resources and buying power of the franchisor, implementing standardized procedures, and benefiting from economies of scale.
The correct answer is b.
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Rent control keeps prices of housing below market rates. Which of these is an unintended consequence of rent control?.
Rent control may seem like an ideal solution to make housing more affordable, but it can have unintended consequences. One of these consequences is a decrease in the quality of housing available. Landlords may not have the financial incentive to invest in upkeep and repairs when they are unable to charge market rates for rent.
This could lead to deteriorating conditions in the units, which could potentially be hazardous to tenants' health and safety.Another unintended consequence is a decrease in the supply of available housing. With rent control, landlords may be more likely to convert rental units into condos or other forms of housing that are not subject to the rent control restrictions. This could make it more difficult for renters to find affordable housing options, especially in areas with high demand.
Overall, while rent control may seem like a solution to the housing affordability crisis, it can have unintended consequences that may ultimately harm renters. Policymakers need to consider these consequences when implementing such policies and should explore alternative solutions that address the root causes of the problem.
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If tax laws allow a company to postpone paying taxes on activities that are currently reported in the company's income statement, the company recognizes a ___________ to reflect the anticipated future taxable amounts
If tax laws allow a company to postpone paying taxes on activities that are currently reported in the company's income statement, the company recognizes a deferred tax liability to reflect the anticipated future taxable amounts.
A deferred tax liability arises when there is a temporary difference between the amount of taxable income reported on the company's financial statements and the amount of taxable income reported on its tax return. Temporary differences can arise due to a variety of reasons, such as differences in depreciation methods, timing of recognition of revenue and expenses, or differences in tax rates.
When a temporary difference results in the company reporting lower taxable income on its financial statements than on its tax return, the company is expected to pay more taxes in the future. Therefore, a deferred tax liability is recognized on the company's balance sheet to reflect this anticipated future tax payment.
The deferred tax liability is eventually reversed when the temporary difference is eliminated, either through the reversal of the underlying transaction or through the passage of time. When the deferred tax liability is reversed, it reduces the company's income tax expense in the future.
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Shares of halva corp. stock offer an expected total return of 14.6 percent. what is the dividend yield if the dividend increases by 2.8 percent annually?
If shares of halva corp. stock offer an expected total return of 14.6 percent then the dividend yield if the dividend increases by 2.8 percent annually is 11.8 percent.
We can use the total return formula to solve for the dividend yield:
Total return = Dividend yield + Capital gains yield
Given the expected total return of 14.6 percent and assuming that the capital gains yield is equal to the dividend growth rate of 2.8 percent annually, we can write:
14.6% = Dividend yield + 2.8%
Solving for the dividend yield:
Dividend yield = 14.6% - 2.8%
Dividend yield = 11.8%
The total return formula is commonly used to evaluate the overall return on an investment, taking into account both the dividend yield and the capital gains yield. In this case, we are given the expected total return of 14.6 percent and the assumption that the capital gains yield is equal to the dividend growth rate of 2.8 percent annually.
To solve for the dividend yield, we subtract the capital gains yield (2.8 percent) from the total return (14.6 percent). This calculation is based on the assumption that the total return is the sum of the dividend yield and the capital gains yield.
By subtracting 2.8 percent from 14.6 percent, we find that the dividend yield is 11.8 percent. This means that the dividend payments received from Halva Corp. stock contribute 11.8 percent of the total return on the investment.
Therefore, the dividend yield for Halva Corp. stock is 11.8 percent.
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the following data have been recorded for the production of product a-11 in the current period. direct materials cost was $2,039. a total of 32 direct labor-hours and 175 machine-hours were worked to make the product. the direct labor wage rate is $14 per labor-hour. the company allocates manufacturing overhead on the basis of machine-hours. the predetermined overhead rate is $15 per machine-hour. the total cost for product a-11 for the current period would be:
The total cost for product a-11 in the current period is $5,112.
To determine the total cost for product a-11 in the current period, we need to consider the direct materials cost, direct labor cost, and manufacturing overhead cost.
The direct materials cost for product a-11 was $2,039. This cost includes all the materials that were used to manufacture the product. For direct labor cost, we need to know the number of direct labor-hours worked and the wage rate per hour. The data provided states that 32 direct labor-hours were worked and the wage rate is $14 per labor-hour. Therefore, the direct labor cost for product a-11 is:
32 hours x $14 per hour = $448
Finally, we need to calculate the manufacturing overhead cost. The company allocates manufacturing overhead based on machine-hours, and the predetermined overhead rate is $15 per machine-hour. The data provided states that 175 machine-hours were worked to make product a-11. Therefore, the manufacturing overhead cost for product a-11 is:
175 machine-hours x $15 per machine-hour = $2,625
To determine the total cost for product a-11, we add the direct materials cost, direct labor cost, and manufacturing overhead cost:
$2,039 (direct materials) + $448 (direct labor) + $2,625 (manufacturing overhead) = $5,112
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Cars arrive at a drive-thru vaccination clinic at the rate of one every 29 seconds, on average, and the vaccinations for all the people in the car take on average 4 minutes and 23 seconds. The exponential distribution is a good model for car arrivals and vaccinations times. A vaccination station costs $75 per hour if idle and $125 per hour if busy. Time spent waiting or being vaccinated is valued at $50 per hour. What is the optimal number of vaccination stations?
To find the optimal number of vaccination stations, we can balance the cost of idle stations and waiting time, model the arrival and vaccination times, and use optimization techniques to minimize the total cost per hour.
To determine the optimal number of vaccination stations, we need to consider the trade-off between the cost of idle stations and the cost of waiting time. Let's start by calculating the average time between car arrivals. Since the rate of car arrivals is one every 29 seconds, the average time between car arrivals is also 29 seconds.
Next, we need to calculate the average time it takes to vaccinate all the people in the car. Since vaccinations for all the people in the car take on average 4 minutes and 23 seconds, or 263 seconds, we can model the vaccination time using an exponential distribution with a rate of λ = 1/263.
Assuming that there are k vaccination stations, the utilization of the stations can be modeled as a Poisson process with a rate of λk, where λ is the arrival rate of cars. The average waiting time for a car to get vaccinated is given by Little's law as L = λW, where W is the average time a car spends in the system (i.e., waiting plus being vaccinated).
The cost of idle stations is $75 per hour per station, and the cost of busy stations is $125 per hour per station. Therefore, the total cost per hour is (k - N) * $75 + N * $125, where N is the number of busy stations.
Finally, we can use optimization techniques to find the optimal number of stations that minimizes the total cost per hour while meeting the target waiting time. This can be done by iterating over different values of k and solving for L and the total cost per hour. The optimal value of k is the one that satisfies the target waiting time and results in the minimum total cost per hour.
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What evolutionary advantage does compartmentalization.
Compartmentalization, which refers to the separation of different cellular processes and structures within a cell, provides several evolutionary advantages.
Firstly, compartmentalization allows for the specialization of cellular processes. By separating different functions into distinct compartments, cells can optimize the efficiency of each process and reduce the likelihood of interference or competition between processes. This specialization can allow for more complex and specialized cellular functions, which can confer advantages in adapting to different environmental pressures and challenges.
Secondly, compartmentalization can help to protect the cell from damage or infection. For example, the nucleus, which is separated from the cytoplasm by the nuclear membrane, provides a protective environment for the cell's genetic material, preventing damage from external factors and helping to prevent the spread of viral infections.
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Consider an open economy. if aggregate desired saving is greater than aggregate desired investment, then: a. current account balance is positive b. current account balance is negative c. financial account balance is positive d. interest rate is negative
Consider an open economy. if aggregate desired saving is greater than aggregate desired investment, then financial account balance is positive. The correct option is c.
In an open economy the ratio of aggregate desired saving to aggregate desired investment indicates that the nation is saving more than it is investing. This suggests that there are excess savings in the economy that are not being put to use as investments.
In a market economy surplus savings can be spent on foreign assets or debt repayment. As a result there would be a capital outflow and a corresponding rise in the balance of the financial accounts.
The domestic economy would also experience a slowdown as a result of excessive savings and low investment which would result in lower imports and a surplus in the current account. The correct option is c.
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When you withdraw money from an ATM ("cash machine"), there may be a service fee that applies (e.g., a fixed fee of $1.75 per transaction). This fee is most similar to which parameter in the Economic Order Quantity (EOQ) model?
A. D
B. H
C. S
D. Q
When you withdraw money from an ATM and a service fee applies, this fee is most similar to parameter S of Economic Order Quantity. Therefore, the correct option is C.
The service fee for withdrawing money from an ATM is most similar to parameter S in the Economic Order Quantity (EOQ) model, which represents the cost of placing and receiving an order. Just like the service fee, the cost of placing and receiving an order is an additional cost incurred in the process of obtaining a product or service.
Hence S in the Economic Order Quantity (EOQ) model represents the ordering cost, which is a fixed cost per transaction, just like the ATM service fee. Hence, the correct option is C: S parameter of EOQ.
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what is the term that is often used for the acquisition of services? what is the term that is often used for the acquisition of services? contracting requisitioning ordering purchasing
The term often used for the acquisition of services is purchasing. So, correct option is D.
Purchasing refers to the process of procuring goods or services in exchange for money or other valuable consideration. It involves the identification of the need for the goods or services, the selection of suppliers, and the negotiation of terms and conditions for the transaction.
Purchasing is a critical business function that helps organizations to achieve their goals by ensuring the availability of the goods and services needed to operate effectively.
The process of purchasing involves various stages, including identification of the need, specification of requirements, identification of potential suppliers, solicitation of proposals or bids, evaluation of proposals, negotiation of contracts, and monitoring of supplier performance.
Effective purchasing requires a thorough understanding of the goods or services being acquired, the market conditions, and the suppliers. It also requires the ability to negotiate favorable terms and conditions, manage risks, and maintain good relationships with suppliers.
In summary, purchasing is the term used for the acquisition of goods and services and is a critical business function that contributes to the success of organizations.
So, correct option is D.
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(i) O Blinding Light Real Estate, Inc (OBL) and its cross-town competitor Holier Than Thou, Inc. (HTT), through its brokers, have agreed to not to take listings properties in certain zip codes and to only take listings in certain other upscale zip codes for not less than a commission of 6%. (ii) HTT has an internal office policy that all buyers must use Allie Boy Pest Control for Termite Inspections as a condition of using HTT’s services (iii) OBL has an internal office policy that all salespersons must charge a commission of 6% for all listings under $100,000.00. (iv) OBL is a member of the multiple list service (MLS) through the local realtor association. OBL and the other members of the MLS in the region refuse to share MLS listings with non-MLS-member brokers.(a) What, if any, prohibited conduct has occurred in the following? (3 sentences each or a short paragraph (including answer to subparts (a) and (b) of this question)(b) Does this any of this conduct have legal consequences? If so, what are the penalties?
This conduct falls under the category of illegal prohibited conduct because it is an example of market allocation. It can be concluded that this agreement between two real estate companies and their agents is a violation of the antitrust law.
On the other hand, the act of Holier Than Thou, Inc. (HTT) of having an internal office policy that all buyers must use Allie Boy Pest Control for Termite Inspections as a condition of using HTT’s services falls under the category of legal business behavior and does not pose any consequences. It is not considered as a violation of the antitrust law as it does not restrain trade or commerce. Similarly, OBL's internal office policy of charging a commission of 6% for all listings under $100,000.00 is also considered legal and does not pose any legal consequences. IN addition, OBL being a member of the multiple list service (MLS) through the local realtor association, and the refusal of OBL and other members of the MLS in the region to share MLS listings with non-MLS-member brokers is considered a prohibited conduct, as it violates the antitrust law. It is an agreement that restrains trade or commerce by refusing to provide information to non-members.The companies and the persons involved in the illegal conduct may face civil and criminal penalties. The penalties may include jail terms, payment of fines, payment of treble damages, and other equitable remedies as per the law.
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Which sentences identify the advertising objectives of a business?
An ice cream business ran into trouble when news of a possible contamination reached its consumers. After a consumer uproar over negligence, the company decided to restore its credibility with the help of public relations. It released statements to the media about its strict regulated processes and also refuted rumors of contamination. It decided to target a market between ages five and fifteen to help position the product as child friendly and establish it as safe to consume. The company wanted to ensure that the product was marketed in a repackaged form in order to gain credibility and boost sales as compared to rivals. However they did not reduce prices, as reducing prices would be met with suspicion. Frequency of the advertised commercial was increased in order to increase recall among consumers. This proved effective, as within a few months there was no further drop in sales and sales slowly started gaining momentum
The sentences that identify the advertising objectives of the business are: - The company decided to target a market between ages five and fifteen to help position the product as child-friendly and establish it as safe to consume.
- The company wanted to ensure that the product was marketed in a repackaged form in order to gain credibility and boost sales as compared to rivals.
- Frequency of the advertised commercial was increased in order to increase recall among consumers.
These sentences show that the advertising objectives of the business were to establish the product as safe for children, gain credibility and boost sales, and increase consumer recall through increased advertising frequency.
Here's another set of sentences that identify advertising objectives:
A new car company wants to launch its first electric vehicle in the market and wants to create awareness about the brand and the product. The company decides to launch a print and online advertising campaign targeting eco-conscious consumers who are interested in technology and innovation.
A fashion brand wants to launch its new line of clothing for young adults. The objective of the advertising campaign is to create awareness about the brand and the new line, generate buzz on social media platforms, and drive traffic to the brand's website and physical stores. The company decides to use influencer marketing and social media advertising to reach its target audience.
A fast food chain wants to promote a new menu item and increase sales. The objective of the advertising campaign is to create awareness about the new item and persuade customers to try it out. The company decides to use TV commercials, billboards, and social media advertising to reach a large audience and promote the product's unique features and benefits. The company also offers discounts and promotions to incentivize customers to try the new item.
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In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $130. 0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $60 million at the end of 2022. Taxable income is $520 million.
Required:
Prepare the appropriate journal entry to record income taxes Iin 2022
To record income taxes in 2022, you need to consider the deferred portion of rent collected in 2021, which was $130 million, and the deferred portion of rent collected at the end of 2022, which was $60 million. The taxable income in 2022 is $520 million, and the tax rate is 25%.
First, calculate the change in the deferred portion of rent:
Change in deferred rent = Deferred rent in 2021 - Deferred rent in 2022
Change in deferred rent = $130 million - $60 million = $70 million
Next, calculate the income tax expense based on taxable income:
Income tax expense = Taxable income * Tax rate
Income tax expense = $520 million * 25% = $130 million
Now, calculate the deferred tax liability:
Deferred tax liability = Change in deferred rent * Tax rate
Deferred tax liability = $70 million * 25% = $17.5 million
Finally, prepare the journal entry to record income taxes in 2022:
- Debit Income Tax Expense: $130 million
- Credit Deferred Tax Liability: $17.5 million
- Credit Income Taxes Payable: $112.5 million ($130 million - $17.5 million)
Your answer: In 2022, the journal entry to record income taxes includes a debit to Income Tax Expense for $130 million, a credit to Deferred Tax Liability for $17.5 million, and a credit to Income Taxes Payable for $112.5 million.
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Schwartz Industry is an industrial company with 80. 1 milion shares outstanding and a market capitalization (equity value) of $3 27 billion. It has $2. 35 bilion of debt outstanding Management have decided to delever the firm by issuing new equity to repay all outstanding debt a. How many new shares must the firm issue? b. Suppose you are a shareholder holding 100 shares, and you disagree with this decision. Assuming a perfect capital market describe what you can do to undo the effect of this decision The firm must issue a. How many new shares must the firm isso? million shares. (Round to one decimal place) b. Suppose you are a shareholder holding 100 shares, and you disagree with this decision. Assuming a perfect capital market, describe what you can do to undo the effect of this You should__new shares and___ $ (Select from the drop-down menus, round the number of shares to the nearest integer, and round the dollar amount to the decision nearest dollar)
a. The firm must issue 57.6 million new shares to deliver the firm.
b. If you disagree with this decision, you can either hold on to your shares or sell them in the market.
a. To deliver the firm, the total equity value after issuing new equity must equal the current total enterprise value (equity value + debt). Therefore, the new equity issued must be equal to the amount of debt outstanding.
New equity = Outstanding debt = $2.35 billion
To find the number of new shares to be issued, we need to divide the new equity by the current share price:
Number of new shares = New equity / Current share price
To find the current share price, we can divide the current market capitalization by the number of outstanding shares:
Current share price = Market capitalization / Number of outstanding shares
Current share price = $3270 million / 80.1 million = $40.82 per share
Number of new shares = $2.35 billion / $40.82 per share = 57.6 million shares
Therefore, the firm must issue 57.6 million new shares to delever the firm.
b. In a perfect capital market, the issuance of new equity to repay debt should have no effect on the value of the firm. Therefore, as a shareholder, you can do nothing to undo the effect of this decision. The value of your shares will remain the same, as the total value of the firm remains unchanged. If you disagree with this decision, you can either hold on to your shares or sell them in the market.
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11. More on the corporate valuation model 123 Warehousing is expected to generate a free cash flow (FCF) of $10,270. 00 million this year (FCF, = $10,270. 00 million), and the FCF is expected to grow at a rate of 21. 40% over the following two years (FCF, and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2. 82% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If 123 Warehousing's weighted average cost of capital (WACC) is 8. 46%, what is the current total firm value of 123 Warehousing? (Note: Round all intermediate calculations to two decimal places. ) $307,865. 25 million $248,201. 19 million $297,841. 43 million O $31,930. 68 million
The current total firm Warehousing value of 123 Warehousing is $248,201.19 million, rounded to two decimal places. Therefore, the correct answer is option B: $248,201.19 million.
The current total firm value of 123 Warehousing, we can use the corporate valuation model, which is:
V :[tex](FCF1 / (1 + WACC)^1) + (FCF2 / (1 + WACC)^2) + ... + (FCFn / (1 + WACC)^n) + (TV / (1 + WACC)^n)[/tex]
FCF1 = Free cash flow for the current year
FCF2 = Free cash flow for the next year
n = the last year of the high-growth phase
TV = Terminal value of the firm, calculated as (FCFn+1 x (1 + g)) / (WACC - g), where g is the perpetual growth rate after the high-growth phase
FCF1 = $10,270.00 million
FCF2 = FCF1 x (1 + growth rate) = $12,451.54 million
FCF3 = FCF2 x (1 + growth rate) = $15,090.48 million
n = 3
WACC = 8.46%
g = 2.82%
TV = (FCF4 x (1 + g)) / (WACC - g)
= ($15,090.48 million x (1 + 2.82%)) / (8.46% - 2.82%)
= $319,183.75 million
Now, we can plug in all the values into the corporate valuation model equation: V:
[tex](FCF1 / (1 + WACC)^1) + (FCF2 / (1 + WACC)^2) + (FCF3 / (1 + WACC)^3) + (TV / (1 + WACC)^3)[/tex]
[tex]($10,270.00 million / (1 + 8.46)^1) + ($12,451.54 million / (1 + 8.46)^2) + ($15,090.48 million / (1 + 8.46)^3) + ($319,183.75 million / (1 + 8.46)^3)[/tex]
V = $248,201.19 million
Therefore, the current total firm value of 123 Warehousing is $248,201.19 million, rounded to two decimal places. Therefore, the correct answer is option B: $248,201.19 million.
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For employees to form a new local union, several things must occur. first, employees must become interested in having a union. the second step is to _____.
The second step for employees to form a new local union would typically be to select a union or labor organization to represent them. This involves researching and contacting various unions to determine which one would be the best fit for the employees' interests and goals. Once a union has been selected, the employees can then work with the union to develop a strategy for organizing and gaining recognition from their employer. This may involve gathering signatures, holding meetings, and engaging in other forms of outreach and communication to build support among their fellow employees. Ultimately, the goal is to gain enough support to hold a union election and establish the union as the employees' official bargaining representative.
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which statement is true regarding the industry data that a hotel may see on a star report? north america and non-north america hotels see the same exact pages on the str report related to industry data north america hotels will see industry data for market, market class, tract and tract scale non-north america hotels will not see any industry segment data north america hotels will see data for only a single industry segment
The statement that is true regarding the industry data that a hotel may see on a STAR (Smith Travel Accommodations Report) report is:
North America hotels will see data for only a single industry segment.
This statement is accurate as per the standard practice followed in the STAR report. The report provides benchmarking data and performance metrics for hotels in North America and other regions. However, North America hotels typically receive data for only one industry segment, whereas hotels in non-North America regions may not receive any industry segment data. This is because the STAR report focuses on providing detailed market data for North America hotels, while non-North America hotels may have limited or no industry segment data available.
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A company sells a product for $3. the company prepares a flexible budget at two sales volumes. at a sales volume of 50 units, budgeted sales will be $
A flexible budget is a budget that adjusts according to changes in sales volume or other variables.
In the given case, budgeted sales at a sales volume of 50 units, we need to know the sales volume's effect on the company's total revenue. If we assume that the company's pricing remains constant at $3 per unit, the budgeted sales will be:
Budgeted sales = Sales volume × Price per unit
At a sales volume of 50 units, the budgeted sales would be:
Budgeted sales = 50 units × $3 per unit = $150
Therefore, at a sales volume of 50 units, the company's budgeted sales would be $150.
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How do we overcome the weaknesses to counteract challenges?
To overcome weaknesses and counteract challenges, we should follow steps like Identifying our weaknesses, Setting specific goals, Developing a plan, Acquiring necessary resources, and many more which are as follows:
1. Identify your weaknesses: The first step in overcoming weaknesses is to recognize them. Evaluate your skills, knowledge, and traits to identify areas where you need improvement.
2. Set specific goals: Once you have identified your weaknesses, set specific, measurable, achievable, relevant, and time-bound (SMART) goals to address them. This will help you stay focused and motivated on your journey to self-improvement.
3. Develop a plan: Create a detailed plan outlining the steps needed to achieve your goals. This plan should include a timeline, resources, and support systems to help you stay on track.
4. Acquire necessary resources: Gather the necessary tools, information, and resources to help you improve in your weak areas. This may include enrolling in courses, attending workshops, or seeking mentorship.
5. Practice and apply new skills: Consistently practice and apply the newly acquired skills to real-life situations. This will help you build confidence and reinforce your learning.
6. Monitor progress: Regularly assess your progress towards your goals. This will help you identify any gaps or areas where you need to adjust your strategy.
7. Seek feedback: Solicit feedback from others to gain insights into your performance and areas for improvement. This will help you make more informed decisions and adjustments to your plan.
8. Embrace setbacks: Understand that setbacks are a natural part of the learning process. Learn from them and use them as opportunities for growth.
9. Stay persistent: Overcoming weaknesses takes time and effort. Stay committed and persistent in your efforts, even when faced with challenges.
10. Celebrate your successes: Recognize and celebrate your achievements, no matter how small. This will help build your confidence and reinforce your commitment to self-improvement.
By following these steps, you can overcome your weaknesses and counteract challenges more effectively.
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Knob, Inc. , is a nationwide distributor of furniture hardware. The company now uses a central billing system for credit sales of $248. 40 million annually. First National, Knob’s principal bank, offers to establish a new concentration banking system for a flat fee of $290,000 per year. The bank estimates that mailing and collection time can be reduced by two days. Assume a 360-day year.
a. By how much will Knob’s cash balances be increased under the new system? (Enter your answer in dollars not in millions. )
Increase in cash balance $
b. Assume that the borrowing rate is 10%. How much extra interest income will the new system generate if the extra funds are used to reduce borrowing under Knob’s line of credit with First National? (Enter your answer in dollars not in millions. )
Interest savings $
c. Calculate the total annual cost of the old system if collection costs under the old system are $59,000 per year? (Enter your answer in dollars not in millions. )
Annual cost of old system $
d. Should Knob accept First National's offer?
No
Yes
a. The increase in cash balance under the new system will be $502,599.95.
b. The total annual cost of the old system is $1,437,666.67.
c,d. The total annual cost of the old system is $1,437,666.67.
a. The reduction in mailing and collection time by two days will allow Knob to have access to funds two days earlier than before. Assuming a 360-day year, the daily savings in cash balances can be calculated as follows:
Daily savings = Credit sales / 360 = $248.4 million / 360 = $689,999.99 (rounded to the nearest cent)
Annual savings = Daily savings x 2 days x 365 = $502,599.95
Therefore, the increase in cash balance under the new system will be $502,599.95.
b. The extra funds generated from the new system can be used to reduce borrowing under Knob's line of credit with First National. Assuming a borrowing rate of 10%, the extra interest income can be calculated as follows:
Interest income = Extra funds x Borrowing rate = $502,599.95 x 10% = $50,259.99
Therefore, the new system will generate an extra interest income of $50,259.99.
c. The total annual cost of the old system can be calculated as follows:
Total cost = Collection costs + Mailing and collection float
Mailing and collection float = Credit sales / 360 x Float days
Float days = 2 days (since the new system will reduce the float days by 2)
Mailing and collection float = $248.4 million / 360 x 2 = $1,378,666.67
Total cost = $59,000 + $1,378,666.67 = $1,437,666.67
Therefore, the total annual cost of the old system is $1,437,666.67.
d. The total annual cost of the old system is $1,437,666.67, which is higher than the flat fee of $290,000 per year for the new system. Therefore, Knob should accept First National's offer and switch to the new concentration banking system. The new system will increase cash balances and generate extra interest income, while reducing the total annual cost for Knob.
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During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,500. The truck was discarded on December 31.
During the year 2022, the company had to remove several assets from its service. These assets included machinery, a forklift, and a truck.
The machinery was retired on January 1, which means that it was no longer in use by the company from that date onwards. It was most likely due to the fact that the machinery had become old and outdated, and it was no longer cost-effective for the company to continue using it.
On the other hand, the forklift was sold on June 30 for $11,500. This suggests that the forklift was still in relatively good condition and had some value that the company was able to realize. It is likely that the company decided to sell the forklift because it no longer needed it or had found a better replacement.
Finally, the truck was discarded on December 31, which means that it was no longer of any use to the company. It is possible that the truck had reached the end of its useful life or was damaged beyond repair. In either case, the company had no choice but to discard it.
Overall, the removal of these assets indicates that the company is making efforts to optimize its resources and ensure that it is using its assets in the most efficient way possible.
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A company purchases office furniture on January 1, 2102 for $28,000. Depreciation is charged at 10 percent per annum using the declining balance method. What will the book value of the asset on December 31, 2013?
A.
$22,680
B.
$22,400
C.
$22,000
D.
$5,600
Using the declining balance method at a rate of 10 percent, the asset will be depreciated by $22,680
Therefore, the answer is A. $22,680.
Using the declining balance method at a rate of 10 percent, the asset will be depreciated by:
The declining balance method is a method of calculating depreciation where the depreciation expense is a fixed percentage of the remaining balance of the asset's book value each year. In other words, the annual depreciation expense decreases over time as the asset ages and the book value decreases.
Year 1: 28,000 x 10% = 2,800
Year 2: (28,000 - 2,800) x 10% = 2,520
The book value of the asset at the end of Year 2 (December 31, 2013) will be:
28,000 - 2,800 - 2,520 = $22,680
Therefore, the answer is A. $22,680.
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Why do businesses have a legitimate role in decisions about the environment?.
Businesses have a legitimate role in decisions about the environment because they are significant users of natural resources and producers of waste and pollution.
They can have a significant impact on the environment through their production processes, supply chains, and the products and services they provide. Therefore, it is important that businesses are held accountable for their environmental impact and take steps to minimize any negative effects.
In addition, businesses have a responsibility to their stakeholders, including customers, employees, investors, and the wider community, to operate in a sustainable and responsible manner.
By adopting environmentally sustainable practices, businesses can reduce their costs, enhance their reputation, and contribute to the overall health and well-being of the communities in which they operate.
Governments also have a role to play in regulating and encouraging environmentally sustainable practices by businesses, through legislation, taxation, and other incentives.
However, businesses can play an important role in shaping environmental policy by participating in public debates and consultations, and by engaging with stakeholders to identify and implement sustainable solutions.
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Please write 20 - 25 sentences or more. Need to write a paperwith references. No copying from other answers. Thank youWhat decisions do supervisors find to be very difficult andwhy?
Supervisors find decisions difficult when they involve complex and sensitive situations that require balancing multiple factors, such as ethical considerations, legal implications, and organizational goals.
Supervisors face numerous challenges in their role, including managing staff, overseeing operations, and making critical decisions. However, certain decisions are particularly challenging because they involve complex and sensitive situations that require balancing multiple factors.
For example, a supervisor may need to decide how to handle an employee who has engaged in misconduct, taking into account factors such as the severity of the offense, the employee's history, and the organization's policies and values. Similarly, a supervisor may need to make decisions regarding resource allocation, weighing competing demands for limited resources and considering the long-term impact on the organization.
These decisions can be emotionally taxing, requiring the supervisor to manage their own stress and emotions while also ensuring that their decisions align with the organization's goals and values. Additionally, supervisors may face legal and ethical considerations that further complicate decision-making.
Overall, effective decision-making requires strong leadership skills, a thorough understanding of organizational policies and goals, and the ability to navigate complex and sensitive situations with sensitivity and compassion.
References:
Chhokar, J. S., Brodbeck, F. C., & House, R. J. (Eds.). (2013). Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge.Goleman, D. (1995). Emotional intelligence. Bantam.Yukl, G. (2013). Leadership in organizations. Pearson.Learn more about supervisor: https://brainly.com/question/30408770
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