Answer:
(a) Dec 31:
Dr Interest Expense 370
Cr Interest Payable 370
(b) Dec 31:
Dr Account Receivable 1,830
Cr Service Revenue 1,830
(c) Dec 31:
Dr Salaries & wages expense 900
Cr Salaries & wages payable 900
Explanation:
Preparation of Journal entries
(a) Based on the information given we were told that Interest on notes payable of the amount of $370 was accrued which means that the Journal entry will be:
Dec 31
Dr Interest Expense 370
Cr Interest Payable 370
(To record accrued interest on note payable)
(b) Based on the information given we were told that Services was performed but unbilled totals of the amount of $1,830 which means that the Journal entry will be :
Dec 31
Dr Account Receivable 1,830
Cr Service Revenue 1,830
(To record unbilled service revenue)
(c) Based on the information given we were told that Salaries of the amount of $900 earned by employees have not been recorded which means that the Journal entry will be :
Dec 31
Dr Salaries & wages expense 900
Cr Salaries & wages payable 900
(To record salaries earned but not recorded)
1. Compute (a) the cost of goods purchased and (b) the cost of goods sold.
2. Prepare the Income Statement for 2017.
The following data are for Marvin Department Store. The account balances (in thousands) are for 2017.
Marketing and advertising costs $24,000
Merchandise inventory, January 1, 2011 45,000
Shipping of merchandise to customers 2,000
Building depreciation $4,200
Purchases 260,000
General and administrative costs 32,000
Merchandise inventory, December 31, 2011 52,000
Merchandise freight-in 10,000
Purchase returns and allowances 11,000
Purchase discounts 9,000
Revenues 320,000
Answer and Explanation:
1. The computation is shown below:
(a) For the cost of goods purchased
Purchases $260,000
Add: Merchandise freight-in $10,000
Less: Purchase returns
and allowances $(11,000)
Purchase discounts $(9,000)
Cost of goods purchased $250,000
(b) For the cost of goods sold
Merchandise inventory, January 1, 2011 $45,000
Add: Cost of goods purchased $250,000
Goods available for sale $2,95,000
Less: Merchandise inventory,
December 31, 2011 $ ($52,000)
Cost of goods sold $243,000
2. Now the preparation of the income statement is presented below:
Marvin department store
Income statement
year ended December 31, 2017
(In thousands)
Revenues $320,000
Less:
Cost of good sold (see above) ($243,000)
Gross Margin $77,000
Less:
Operating costs:
Marketing and advertising cost ($24,000)
Shipping of merchandise to customers (2,000)
Building depreciation ($4,200)
General and administrative costs ($32,000)
Total operating cost ($62,200)
Operating income $14,800
Broomhilda manufactures broomsticks for her fellow witch (and wizard) friends. Broomhilda uses a job order cost system and applies overhead to production on the basis of direct labor cost. On September 1, Job 50 (a super deluxe broom complete with a separate sleep space and shower area as well as an espresso machine) was the only job in process. The costs incurred prior to September on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of September 1, Job 49 (a broom shaped like a cat with some extra cargo space for all the cats) had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account. During the month of September, Broomhilda began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $90,000 on account.
2. Incurred manufacturing overhead costs as follows: indirect materials $17,000 (including broom polish and specially crafted scissors to trim stray twigs), indirect labor $20,000 (Hansel and Gretel clean the shop and run errands for the elves), depreciation expense on equipment $12,000 (Broomhilda has multiple molding stations for each broom she creates), and various other manufacturing overhead costs on account $16,000.
3. Assigned direct materials and direct labor to jobs as follows:
Job no. Direct Materials Direct Labor
50 10,000 5,000
51 39,000 25,000
52 30,000 20,000
Required:
1. Calculate the predetermined overhead rate for September, assuming Broomhilda estimates total manufacturing overhead costs of $840,000 and direct labor costs of $700,000 for September.
2. Open job cost sheets for Jobs 50, 51, and 52. Enter the September 1 balances on the job cost sheet for Job 50.
3. Prepare the journal entries to record the purchase of raw materials, and the manufacturing overhead costs incurred during the month of March.
4. Prepare the summary journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning overhead costs, use the overhead rate calculated in (1). Post all costs to the job cost sheets as necessary.
5. Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.
6. Prepare the journal entry (or entries) to record the sale of any job(s) during the month.
7. What is the balance in the Finished Goods Inventory account at the end of the month? What job(s) does this balance consist of? 8. What is the amount of over- or underapplied overhead? Prepare the journal entry to close this to Cost of Goods Sold
Answer:
Broomhilda
1. Predetermined overhead rate = overhead costs/direct labor costs
= $840,000/$700,000
= $1.20 per direct labor cost
2. Job Cost Sheets for Job 50 Job 51 Job 52
Beginning balances:
Direct materials $20,000
Direct labor $12,000
Manufacturing overhead $16,000
3. Journal Entries for the purchase of raw materials and manufacturing overhead costs:
Debit Raw materials $90,000
Credit Accounts Payable $90,000
To record the purchase of raw materials on account.
Debit Manufacturing overhead $65,000
Credit Raw materials $17,000
Credit Wages $20,000
Credit Depreciation expense $12,000
To record the manufacturing overhead incurred.
4. Debit Job 50 $21,000
Credit Raw materials $10,000
Credit Direct labor $5,000
Credit Manufacturing overhead $6,000
To record the assignment of direct materials, direct labor, and manufacturing overhead costs to Job 50.
Debit Job 51 $94,000
Credit Raw materials $39,000
Credit Direct labor $25,000
Credit Manufacturing overhead $30,000
To record the assignment of direct materials, direct labor, and manufacturing overhead costs to Job 51
Debit Job 52 $74,000
Credit Raw materials $30,000
Credit Direct labor $20,000
Credit Manufacturing overhead $24,000
To record the assignment of direct materials, direct labor, and manufacturing overhead costs to Job 52
5. Job Cost Sheets for Job 50 Job 51 Job 52
Beginning balances:
Direct materials $20,000
Direct labor $12,000
Manufacturing overhead $16,000
Direct materials $10,000 $39,000 $30,000
Direct labor $5,000 $25,000 $20,000
Manufacturing overhead $6,000 $30,000 $24,000
Total $69,000 $94,000
6. Debit Accounts Receivable $280,000
Credit Sales Revenue $280,000
To record the sale of goods (Jobs 49 and 50 for $122,000 and $158,000, respectively).
Debit Cost of Goods Sold $159,000
Credit Job 49 $90,000
Credit Job 50 $69,000
To record the cost of goods sold for Jobs 49 and 50.
7. Finished Goods Inventory balance = $94,000
This balance consists of Raw materials $39,000, Direct labor $25,000, and Manufacturing overhead $30,000 for Job 51.
8. The amount of over-or underapplied overhead:
Overhead incurred = $65,000
Overhead applied = $60,000
Underapplied = $5,000
Debit Cost of Goods Sold $5,000
Credit Manufacturing overhead $5,000
To close the underapplied overhead to the cost of goods sold.
Explanation:
Jobs 50 costs prior to September:
direct materials $20,000,
direct labor $12,000, and
manufacturing overhead $16,000
Total costs so far = $$48,000
Job 49 completed at a cost of $90,000
Beginning balance of Raw Materials Inventory = $15,000
Started Jobs 51 and 52, completed Jobs 50 and 51
Sold Jobs 49 and 50 on account for $122,000 and $158,000, respectively.
Additional events:
Raw materials purchased on account = $90,000
Manufacturing overhead incurred:
indirect materials $17,000
indirect labor $20,000
depreciation expense on equipment $12,000
Various manufacturing overhead = $16,000
Total = $65,000
Assignment of direct materials and direct labor to jobs:
Job no. Direct Materials Direct Labor Manufacturing overhead
50 10,000 5,000 $6,000
51 39,000 25,000 $30,000
52 30,000 20,000 $24,000
Estimated total manufacturing overhead costs = $840,000
Estimated direct labor costs = $700,000
Predetermined overhead rate = overhead costs/direct labor costs
= $840,000/$700,000
= $1.20 per direct labor cost
Lendell Company has these comparative balance sheet data:
Lendell Company
Balance Sheets
December 31
2020 2019
Cash $ 16,000 $ 29,000
Accounts receivable (net) 71,000 61,000
Inventory 61,000 51,000
Plant assets (net) 200,000 176,000
$348,000 $317,000
Accounts payable $50,000 $59,400
Mortgage payable (15%) 106,000 106,000
Common stock, $10 par 143,000 115,000
Retained earnings 49,000 36,600
$348,000 $317,000
Additional information for 2020:
1. Net income was $25,200.
2. Sales on account were $415,300. Sales returns and allowances amounted to $19,300.
3. Cost of goods sold was $196,000.
4. Net cash provided by operating activities was $44,400.
5. Capital expenditures were $26,200, and cash dividends were $8,900.
Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, e.g. 1.67. Round Accounts receivable turnover, Average collection period, Inventory turnover and Days in inventory to 1 decimal place, e.g. 1.6.)
a. Current ratio
b. Accounts receivable turnover
c. Average collection period
d. Inventory turnover
e. Days in inventory
Answer:
Lendell Company
a. Current ratio = Current assets/Current liabilities
= $148,000/50,000
= 2.96
= 3
b. Accounts Receivable Turnover = Net Sales/Average Accounts Receivable
= $396,000/66,000
= 6 times
c. Average collection period = Average Accounts Receivable/Net Sales * 365 days
= $66,000/$396,000 * 365
= 60.8 days
d. Inventory turnover = Cost of Goods Sold/Average Inventory
= $196,000/56,000
= 3.5 times
e. Days in inventory = 365/3.5
104.3 days
Explanation:
a) Data and Calculations:
Lendell Company
Balance Sheets
December 31
2020 2019 Average
Cash $ 16,000 $ 29,000 $ 22,500
Accounts receivable (net) 71,000 61,000 66,000
Inventory 61,000 51,000 56,000
Current assets $148,000 $141,000 $144,500
Plant assets (net) 200,000 176,000 188,000
$348,000 $317,000 $332,500
Accounts payable $50,000 $59,400 $54,700
Mortgage payable (15%) 106,000 106,000 106,000
Common stock, $10 par 143,000 115,000 129,000
Retained earnings 49,000 36,600 42,800
$348,000 $317,000 $332,500
Additional information for 2020:
1. Net income was $25,200.
2. Sales on account were $415,300.
Sales returns and allowances amounted to $19,300.
Net Sales $396,000
3. Cost of goods sold was $196,000.
4. Net cash provided by operating activities was $44,400.
5. Capital expenditures were $26,200
Cash dividends were $8,900
Answer:
Lendell Company
a. Current ratio = Current assets/Current liabilities
= $148,000/50,000
= 2.96
b. Accounts Receivable Turnover = Net Sales/Average Accounts Receivable
= $396,000/66,000
= 6 times
c. Average collection period = Average Accounts Receivable/Net Sales * 365 days
= $66,000/$396,000 * 365
= 60.8 days
d. Inventory turnover = Cost of Goods Sold/Average Inventory
= $196,000/56,000
= 3.5 times
e. Days in inventory = 365/3.5
104.3 days
Explanation:
Wildhorse Co. entered into these transactions during May 2022, its first month of operations.
1. Stockholders invested $33,000 in the business in exchange for common stock of the company.
2. Purchased computers for office use for $26,900 from Ladd on account.
3. Paid $3,100 cash for May rent on storage space.
4. Performed computer services worth $15,300 on account.
5. Performed computer services for Wharton Construction Company for $3,500 cash.
6. Paid Western States Power Co. $8,700 cash for energy usage in May.
7. Paid Ladd for the computers purchased in (2).
8. Incurred advertising expense for May of $3,400 on account.
9. Received $11,100 cash from customers for contracts billed in (4).
Required:
Using a tabular analysis, show the effect of each transaction on the accounting equation. Provide explanations for changes to Stockholders' Equity.
Answer and Explanation:
Find answer and explanation attached
On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month:
a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $17,500.
b. Purchased supplies on account, $2,300.
c. Earned sales commissions, receiving cash, $13,300.
d. Paid rent on office and equipment for the month, $3,000.
e. Paid creditor on account, $1,150. Paid dividends, $1,800.
f. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $400.
g. Paid office salaries, $2,800.
Determined that the cost of supplies used was $1,050.
Answer:
a. Dr Cash 17,500
Cr Common Stock 17,500
b. Dr Supplies 2,300
Cr Account payable 2,300
c. Dr Cash 13,300
Cr Sales commission 13,300
d. Dr Rent expense 3,000
Cr Cash 3,000
e. Dr Account payable 1,150
Cr Cash 1,150
f. Dr Dividend 1,800
Cr Cash 1, 800
g. Dr Automobile expense 1,500
Dr Miscellaneous expense 400
Cr Cash 1,900
h. Dr Salaries expense 2,800
Cr Cash 2,800
i. Dr Supplies expense 1,050
Cr Supplies 1,050
Explanation:
Preparation of Journal entry
a. Dr Cash 17,500
Cr Common Stock 17,500
b. Dr Supplies 2,300
Cr Account payable 2,300
c. Dr Cash 13,300
Cr Sales commission 13,300
d. Dr Rent expense 3,000
Cr Cash 3,000
e. Dr Account payable 1,150
Cr Cash 1,150
f. Dr Dividend 1,800
Cr Cash 1, 800
g. Dr Automobile expense 1,500
Dr Miscellaneous expense 400
Cr Cash 1,900
(1,500+400)
h. Dr Salaries expense 2,800
Cr Cash 2,800
i. Dr Supplies expense 1,050
Cr Supplies 1,050
The difference between the revenue from selling inventory and the cost of that inventory is measured as:
Answer:
Gross Profit
Explanation:
Gross Profit is calculated as Selling Price less Cost of Goods Sold. Gross Profit is found in Trading Account.
This information relates to Flounder Real Estate Agency.
Oct. 1 Stockholders invest $29,600 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $30,600.
3 Buys office furniture for $3,660, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,050 (not paid by Roads at this time).
10 Receives cash of $180 as commission for acting as rental agent renting an apartment.
27 Pays $600 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $2,550 in salary for October.
Required:
Prepare the debit-credit analysis for each transaction.
Answer and Explanation:
Oct 1:
Debit cash $29600
Credit common stock $29600
Oct 2:
Debit no effect
Credit no effect
Oct 3:
Debit office furniture $3660
Credit accounts payable $3660
Oct 6:
Debit accounts receivable $10050
Credit revenue account $10050
Oct 10:
Debit cash $180
Credit revenue $180
Oct 27:
debit accounts payable $600
Credit cash $600
Oct 30:
Debit salary expense $2550
Credit cash $2550
Note :credit and debit can both increase and decrease an account's value depending on if the account is an asset or liability account or an income or expense account
Match the following sentecnes with followings.
a. A graphical object showing the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices
b. The amount of a good that buyers are willing and able to purchase at a given price
c. The claim that, with other things being equal, the quantity demanded of a good falls when the price of that good rises
d. A table showing the relationship between the price of a good and the amount that buyers are Willing and able to purchase at various prices
1. Quantity Demanded
2. Demand Curve
3. Demand Schedule
4. Law of Demand
Your coworker Rina is really concerned about a project that she has just been assigned. She is in charge of analyzing and determining conditions in the market for televisions from an extensive sales report. If Rina's boss is interested in a graphical representation of the relationship between the price and quantity of televisions demanded, you would advise your coworker to construct __________ using the data provided. However, if Rina's boss is more interested in the detailed numbers used to construct this visual representation, you would instead advise your coworker that __________would be more appropriate.
Answer:
a) & 2) ; b) & 1) ; c) & 4) ; d) & 3)
Demand Curve ; Demand Schedule
Explanation:
a) A graphical object showing the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices : 2) Demand Curve
b) The amount of a good that buyers are willing and able to purchase at a given price : 1) Quantity Demanded
c) The claim that, with other things being equal, the quantity demanded of a good falls when the price of that good : 4) Law of Demand
d) A table showing the relationship between the price of a good and the amount that buyers are Willing and able to purchase at various prices : 3) Demand Schedule
If Rina's boss is interested in a graphical representation of the relationship between the price and quantity of televisions demanded, you would advise your coworker to construct Demand Curve using the data provided. If Rina's boss is more interested in the detailed numbers used to construct this visual representation, you would instead advise your coworker that Demand Schedule would be more appropriate.Constructing and Assessing Income Statements Using Cost-to-Cost Method Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NSTAR, a utility company serving the Boston area. General Electric Company estimated that its construction costs would be $840 million. The contract price of $1,050 million is to be paid as follows: $350 million at the time of signing; $350 million on December 31, 2016; and $350 million at completion in May 2017. General Electric incurred the following costs in constructing the generator: $336 million in 2016 and $504 million in 2017.
Required:
Compute the amount of General Electric's revenue, expense, and income for both 2016 and 2017, and for both years combined, under the cost-to-cost revenue recognition method.
Answer:
Year Costs % Total cost Revenue Income
incurred excepted costs recognized
$'million $'million $'million $'million
2016 336 40% 420 84
2017 504 60% 630 126
Total 840 100% 1,050 210
Workings
1. % Total cost excepted costs
2016 = 336 / 840 = 0.4 = 40%
2017 = 504/840 = 0.6 = 60%
2. Revenue recognized
2016 = 1,050 * 40% = 420
2017 = 1,050 * 60% = 630
3. Income = Revenue recognized - Cost incurred
Consider two neighboring island countries called Bellissima and Dolorium. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor.
Jeans Rye
(Pairs per hour of labor) (Bushels per hour of labor)
Bellissima 8 16
Dolorium 5 20
Initially, suppose Bellissima uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Dolorium uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Bellissima produces 8 million pairs of jeans and 48 million bushels of rye, and Dolorium produces 15 million pairs of jeans and 20 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.
Felicidad's opportunity cost of producing 1 pair of jeans is (1/2 bushel, 1/4 bushel, 2 bushel, 4 bushel) of corn, and Bellissima's opportunity cost of producing 1 pair of jeans is (1/2 bushel, 1/4 bushel, 2 bushel, 4 bushel) of corn. Therefore, (Bellissima, Felicidad) has a comparative advantage in the production of jeans, and (Bellissima, Felicidad) has a comparative advantage in the production of corn.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce _____ million pairs per month, and the country that produces corn will produce _____ million bushels per month.
Answer:
Bellisima's opportunity cost:
Production of corn per million hours of labor = 8 / 16 = 0.5 pairs of jeans Production of jeans per million hours of labor = 16 / 8 = 2 bushels of ryeDolorium's opportunity cost:
Production of corn per million hours of labor = 5 / 20 = 0.25 pairs of jeans Production of jeans per million hours of labor = 20 / 5 = 4 bushels of ryeDolorium has a comparative advantage int he production of rye while Bellisima has a comparative advantage in the production of jeans.
If both countries specialize:
Dolorium will produce 80 million bushels of rye. Bellisima will produce 32 million pairs of jeans.Total production of rye has increased by 12 million bushels.
Total production of jeans has increased by 9 million pairs.
Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. Opportunity costs are by definition invisible, making it simple to ignore them
The potential cost of Bellisima is calculated as follows:
8/16 = 0.5 pairs of jeans were produced for every million hours of labor in the production of maize.
16/ 8 = 2 bushels of rye are produced for every million hours of work spent producing jeans.
The opportunity cost of delirium
The amount of maize produced for one million hours of work is 5/20, or 0.25 pairs of jeans.
20/5 = 4 bushels of rye are produced for every million hours of work spent producing jeans.
In the cultivation of rye, Dolorium has a comparative advantage, whereas Bellisima has a comparative advantage in the manufacture of jeans.
If both nations have specialized:
Eighty million bushels of rye will be produced at Dolorium.
32 million pairs of jeans will be produced by Bellisima.
Rye production has gone up by 12 million bushels overall.
Nine million additional pairs of jeans have been produced overall.
Making smarter decisions requires an understanding of the possible possibilities lost when a company or person chooses one investment over another.
Opportunity cost is the advantage that was lost because a particular alternative was not selected. It is necessary to examine the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs. Opportunity costs have a value that may help people and businesses make more lucrative decisions.
Learn more about opportunity costs here:
https://brainly.com/question/31580865
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Amber, a publicly held corporation, had been paying its chief executive officer (CEO) an annual salary of $900,000. Amber instituted a performance-based compensation plan, effective January 1, 2017, that increased the CEO's 2017 compensation by $300,000. It is anticipated that the plan will provide an additional $350,0000 in 2019. Prepare a letter to Amber's board of directors explaining how much of the CEO's 2019 compensation is deductible and the consequences of any changes that might be made to the compensation plan in 2019. Address the letter to the board chairperson, Angela Riddle, whose address is 100 James Tower, Cleveland, OH 44106. Dear Ms. Riddle:
I am responding to your inquiry regarding the current compensation plans for Amber Corporation's president. The Board agreed to amend the president's compensation plan effective January 1, 2017, to allow an increase in the compensation she can earn through a performance-based compensation plan. In 2017, the president earned an additional $300,000 under her revised contract. This amount increased to $350,000 in 2018 and 2019, and it is projected that she will increase her earnings by $350,000 under this plan in 2020.
In general, any salary paid to the president in excess of $_______ is deemed excessive executive compensation and not deductible. Before 2018, compensation earned under a performance-based compensation option was not subject to this limitation. Therefore, in 2017, Amber deducted $________ as compensation.
Answer:
Amber
October 8, 2020
Attn: Angela Riddle
The Board Chairperson
Amber Corporation
100 James Tower
Cleveland, OH 44106
Dear Ms. Riddle,
Re: President's Performance-based Compensation
I am responding to your inquiry regarding the current compensation plans for Amber Corporation's president.
The Board agreed to amend the president's compensation plan effective January 1, 2017, to allow an increase in the compensation she can earn through a performance-based compensation plan.
In 2017, the president earned an additional $300,000 under her revised contract. This amount increased to $350,000 in 2018 and 2019, and it is projected that she will increase her earnings by $350,000 under this plan in 2020.
In general, any salary paid to the president in excess of $_1 million______ is deemed excessive executive compensation and not deductible. Before 2018, compensation earned under a performance-based compensation option was not subject to this limitation. Therefore, in 2017, Amber deducted $__1.2 million______ as compensation.
I hope that the above clarifies the issue.
Yours sincerely,
Tony Ohagwam, FCCA
Chief Finance Officer
Explanation:
This is an official letter to the Chairperson of the Board of Directors of Amber Corporation. In this letter, the issue of the President's compensation and the tax deduction for the corporation is clearly presented. It is the writer's hope that the subjects of the enquiry are adequately resolved.
Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Nitai’s employer called and offered him $525 in overtime pay if he would agree to work over the weekend. Nitai could get his car repaired over the weekend at Autofix for $420. If Nitai works over the weekend, he will have to pay the $420 to have his car repaired, but he will earn $525. Assume Nitai’s marginal tax rate is 12 percent rate.
Required:
a. Strictly considering tax factors, should Nitai work or repair his car if the $420 he must pay to have his car fixed is deductible for AGI?
b. Given the answer in a above, by how much is Nitai better or worse off?
Answer:
A) $12.6 B)He will have earned $92.4 extra.
Explanation:
A) Assuming that the $420 is not included when calculating the 12 percent tax, that means the tax that he will pay for the $525 is 12 percent of $105 which is (105 x 12) / 100 = $12.6
B) If Nitai does not work and instead fixes the car himself without spending the $420, he will save that money. But if he works and gets the car fixed at Autofix, he will have earned $92.4 over the weekend and still get his car fixed.
I hope this answer helps.
Required:
1. Prepare general journal entries to record these transactions using the following titles:
Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163); Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Engineering Fees Earned (402); Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604).
Transactions:
Aracel Engineering completed the following transactions in the month of June.
Jenna Aracel, the owner, invested $205,000 cash, office equipment with a value of $8,200, and $70,000 of drafting equipment to launch the company in exchange for common stock.
The company purchased land worth $56,000 for an office by paying $9,800 cash and signing a long-term note payable for $46,200.
The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b.
The company paid $4,200 cash for the premium on an 18-month insurance policy.
The company completed and delivered a set of plans for a client and collected $7,600 cash.
The company purchased $34,000 of additional drafting equipment by paying $10,400 cash and signing a long-term note payable for $23,600.
The company completed $16,000 of engineering services for a client. This amount is to be received in 30 days.
The company purchased $1,950 of additional office equipment on credit.
The company completed engineering services for $27,000 on credit.
The company received a bill for rent of equipment that was used on a recently completed job. The $1,591 rent cost must be paid within 30 days.
The company collected $9,000 cash in partial payment from the client described in transaction g.
The company paid $1,100 cash for wages to a drafting assistant.
The company paid $1,950 cash to settle the account payable created in transaction h.
The company paid $1,110 cash for minor maintenance of its drafting equipment.
The company paid $9,880 cash in dividends.
The company paid $2,000 cash for wages to a drafting assistant.
The company paid $4,300 cash for advertisements on the Web during June.
Answer:
Jenna Aracel, the owner, invested $205,000 cash, office equipment with a value of $8,200, and $70,000 of drafting equipment to launch the company in exchange for common stock.
Dr Cash 205,000
Dr Office equipment 8,200
Dr Drafting equipment 70,000
Cr Common stock 283,200
The company purchased land worth $56,000 for an office by paying $9,800 cash and signing a long-term note payable for $46,200.
Dr Land 56,000
Cr Cash 9,800
Cr Notes payable 46,200
The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b.
Dr Building 58,000
Cr Cash 58,000
The company paid $4,200 cash for the premium on an 18-month insurance policy.
Dr Prepaid insurance 4,200
Cr Cash 4,200
The company completed and delivered a set of plans for a client and collected $7,600 cash.
Dr Cash 7,600
Cr Engineering fees 7,600
The company purchased $34,000 of additional drafting equipment by paying $10,400 cash and signing a long-term note payable for $23,600.
Dr Drafting equipment 34,000
Cr Cash 10,400
Cr Notes payable 23,600
The company completed $16,000 of engineering services for a client. This amount is to be received in 30 days.
Dr Accounts receivable 16,000
Cr Engineering fees 16,000
The company purchased $1,950 of additional office equipment on credit.
Dr Office equipment 1,950
Cr Accounts payable 1,950
The company completed engineering services for $27,000 on credit.
Dr Accounts receivable 27,000
Cr Engineering fees 27,000
The company received a bill for rent of equipment that was used on a recently completed job. The $1,591 rent cost must be paid within 30 days.
Dr Equipment rental expense
Cr Accounts payable 1,591
The company collected $9,000 cash in partial payment from the client described in transaction g.
Dr Cash 9,000
Cr Accounts receivable 9,000
The company paid $1,100 cash for wages to a drafting assistant.
Dr Wages expense 1,100
Cr Cash 1,100
The company paid $1,950 cash to settle the account payable created in transaction h.
Dr Accounts payable 1,950
Cr Cash 1,950
The company paid $1,110 cash for minor maintenance of its drafting equipment.
Dr Repairs expense 1,110
Cr Cash 1,110
The company paid $9,880 cash in dividends.
Dr Dividends 9,880
Cr Cash 9,880
The company paid $2,000 cash for wages to a drafting assistant.
Dr Wages expense 2,000
Cr Cash 2,000
The company paid $4,300 cash for advertisements on the Web during June.
Dr Advertising expense 4,300
Cr Cash 4,300
Describe the laws that are enforced by the SEC for companies that publicly sell stock.
(SEC); US security and exchange commission is a body in the United States that has 3 main part mission.
They maintain fair, orderly and efficient market,they also protect investors as well as facilitate capital formation.
SEC enforced some laws to companies that publicly sell stocks,this enforced laws covers the fact that broker dealers,public companies as well as certain insiders are all required to make a regular fillings with SEC. These financial professionals and investors solely rely on these fillings with SEC to get information about companies they are evaluating for the purpose of investment.
Answer:
The SEC ensures that companies publicly selling stock tell the public the truth about their businesses, the stocks they are selling, and the risks involved in investing.
Explanation: Sample Response
What is market demand?
a. The subtraction of the individual quantities demanded by each buyer in a market at each price.
b. The addition of the individual prices of the product at each level of quantity.
c. The multiplication of the prices of each product by the individual quantities demanded by each buyer in a market.
d. The division of the total spending by an individual buyer by the prices paid for the product.
e. The addition of the individual quantities demanded by each buyer in a market at each price
Answer:
e. The addition of the individual quantities demanded by each buyer in a market at each price
Explanation:
Among the options given above, the selected is the best explanation to what a market demand happens to be. The quantity of goods demanded by each individuals when added together gives an idea of what the market demand is for that particular goods.
P purchased a machine on January 1, 2018 for $53656 At the time of purchase, the machine was expected to have a useful life of 16 years and a residual value of $4292 P uses straight-line depreciation At the beginning of 2026, P estimated the machine had a remaining useful life of 11 years with no residual value. Determine the following amounts
1. The depreciation expense for the year ending December 31, 2018:
2. The carrying value of the machine on January 1, 2026:
3. The depreciation expense for the year ending December 31, 2026:
4. The carrying value of the machine on December 31, 2026:
Answer:
Jan' 18 to Dec' 25 estimated annual depreciation = 3085, Jan'26 onwards estimated annual depreciation = 4878
1) 3085, 2) 28976, 3) 4878, 4) 24098
Explanation:
Annual Depreciation = (Cost - Scrap Value) / Useful Years
On Jan 2018, Estimated Annual Depreciation = (53656 - 4292) / 16 = 3085
On Jan 2026, Estimated Annual Depreciation = (53656 - 0) / 11 = 4878
1. The depreciation expense for the year ending December 31, 2018 = 3085
2. The carrying value of the machine on January 1, 2026 = Cost - Dep 8 years (2018 - 2025) = 53656 - (3085) 8 = 53656 - 24680 = 28976
3. The depreciation expense for the year ending December 31, 2026 = 4878
4. The carrying value of the machine on December 31, 2026 = Carrying capacity Jan'2026 - depreciation for year ending Dec'2026 = 28976 - 4878 = 24098
You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies: tt & t Inc. and Phonez Corp. corporate tax for both firms is 35%. Your associate analyst has calculated and compiled, in the following table, a list of important figures you need for the analysis:
TT &T Inc. Phonz Crop.
EBIT $175,000 $124,600
Depreciation $70,000 $49,840
Total operating capital $1,029,000 $802,900
Net investment in operating capital $490,000 $259,000
WACC 8.84% 11.50%
In your analysis, you want to look for several characteristics-one of them being the return on invested capital (ROIC). Using the information available, complete the following statements:
TT&T inc. has a ______________free cash flow than Phonez Corp. does. The net operating profit after tax (NOPAT) for tt&t inc. is___________, whereas the NOPAT for Phonez Corp. is_________. TT&T inc. has a return on invested capital of_________, whereas, Phonez Corp. has a return on invested capital of___________
Your inference from the analysis is that both firms are in a high-growth phase, and their growth will be profitable. Considering your analysis, which of the following statements is true?
a. If ROIC is less than the rate of return that investors require, which is the weighted average cost of capital (WACC), then the firm is adding value.
b. If ROIC is greater than the rate of return that investors require, which is the weighted average cost of capital (WACC), then the firm is adding value.
Considering the following labor markets. A slightly different feature of labor markets is that employees are the suppliers of labor and firms are the demanders of labor. Assuming an identical inward shift of the demand curve, which market will cause a higher level of unemployment due to the demand shift, as measured by the number of jobs lost due to the demand shift (not the absolute number of jobs)? Note: We are assuming we are in an industry with market power. While this is not necessarily the best assumption for a labor market, it is reasonable in the presence of a strong labor union.
Answer:
i added the graph of both markets as an attachment
The answer is market B or 2. This market a higher level of unemployment.
When elasticity of supply increases, we have it that the suppliers would have greater market power.
In market B, we have it that the elasticity of supply is bigger than that if A. This means that the supplier has more market power in this market than in market A.
Since the elasticity us greater in this market, then we would have change in unemployment due to a fall in demand to be more here than in A.
Best Buy Co, Inc., is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended January 28, 2017, are shown below. Best
Buy Co, Inc.
Balance Sheet
At January 28, 2017
($ in millions)
Assets
Current assets:
Cash and cash equivalents $2,240
Short-term investments 1,681
Accounts receivable (net) 1,347
Inventory 4,864
Other current assets 384
Total current assets 10,516
Long-term assets 3,340
Total assets $13,856
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $4,984
Other current liabilities 2,138
Total current liabilities 7,122
Long-term liabilities 2,025
Shareholders’ equity 4,709
Total liabilities and
shareholders’ equity $13,856
Best Buy Co, Inc.
Income Statement
For the Year Ended January 28, 2017
($ in millions)
Revenues $39,403
Costs and expenses 37,549
Operating income 1,854
Other income (expense) (38)
Income before income taxes 1,816
Income tax expense 609
Net income $1,207
Includes $72 of interest expense.
Required:
1-A. Calculate the current ratio for Best Buy for its fiscal year ended January 28, 2017.
1-B. Calculate the acid-test ratio for Best Buy for its fiscal year ended January 28, 2017.
1-C. Calculate the debt to equity ratio for Best Buy for its fiscal year ended January 28, 2017.
1-D. Calculate the times interest earned ratio for Best Buy for its fiscal year ended January 28, 2017.
Answer
A)=1.47655 times
B)0.74 times
C)1.94 times
D)26.2 times
Explanation
The formulas and calculations are shown below:
1-A)the current ratio for Best Buy for its fiscal year ended January 28, 2017.
= Total Current assets ÷ total current liabilities=[10516 ÷ 7122]
=1.47655
1-B)the acid-test ratio for Best Buy for its fiscal year ended January 28, 2017 can be calculated below as
Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)
=2240 + 1681 + 1347=5268
the current liabilities = 7122
If we substitute the values into the above expresion, we have
=$ 5652 ÷ $7122
= 0.74 times
1-C.) the debt to equity ratio for Best Buy for its fiscal year ended January 28, 2017.
Debt equity ratio = (Total debt ÷ Shareholders’ Equity)
where,
Total debt = Total current liabilities + Long-term liabilities
Total current liabilities =$ 9147
the Shareholders’ equity is $4709
If we substitute the values we have,
$9147 ÷$ 4709
= 1.94 times
1-D. Calculate the times interest earned ratio for Best Buy for its fiscal year ended January 28, 2017 can be calculated as
Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)
Earnings before interest and taxes = Income before income tax + Interest expense + income tax expense
$1854 - $38 + $72
=$1888
Interest expense=$72
Then substitute into above expresion, we have
=$ 1888 ÷$ 72
= 26.2 times
Rambo-Conduit Corporation manufactures plastic conduit that is used in the cable industry. A conduit is a tube that encircles and protects the underground cable. In the process of making the plastic conduit, called extrusion, the melted plastic (resin) is pressed through a die to form a tube. Scrap is produced in this process. Information from the cost of production reports for three months is as follows, assuming that inventory remains constant:
May June July
Resin pounds input into the process 470,000 700000 650,000
Price per pound x81.50 x81.50 x81.50
Plastic material costs 493,000 6,40,000 6,77,000
Conversion costs 80,000 120,000 115000
Conduit output 800,000 1200,000 1130,000
from the process (feet)
Assuming that there is one-half pound of resin per foot of the finished product, determine the resin materials cost per foot of finished product for June.
a. $0.53
b. $0.60
c. $0.54
d. None of these choices are correct.
Answer: a. $0.53
Explanation:
Material Cost per foot of finished product = Material Cost/ Number of feet produced in June
Plastic Material Cost in June= $640,000
Number of Feet produced in June = 1,200,000
Material cost per foot of finished product
= 640,000/ 1,200,000
= $0.53
Several transactions for Trolley, Inc. are presented below. The company adjusts its books only at year-end.
a. On August 1, the company rented some land from another company for $2,660 for a three-year time period. Trolley charged an expense account on August 1.
b. On February 1, Trolley received $8,000 for a four-year technical service contract. Trolley is performing the services evenly over the four-year period. The company credited a liability account, Unearned Service Revenue, on February 1.
c. On May 1, Trolley loaned $3,400 to another company on a 12%, one-year note.
d. The weekly (five-day) payroll of Trolley amounts to $2,500. All employees are paid at the close of business each Friday. December 31 falls on a Thursday.
Required:
Prepare the adjusting entries for December 31.
Answer: See explanation
Explanation:
It should be noted that adjusting entries are normally made at the conclusion of an accounting period so that the income and expenditure will be allocated to the particular period when they took place.
Prepaid rent is calculated as:
= 2660 × (36-5)/36
= 2660 × 31/36
= 2290.56
Unearned revenue:
= 8000 × 11/48
= 1833.33
Accrued interest:
= 3400 × 12% × 8/12
= 3400 × 0.12 × 8/12
= 272
Salary expense:
= 2500 × 4/5
= 2000
The adjusting entry has been attached.
Your younger sister is just starting high school, and 5 years from today she should be entering college. Your father plans to start a college fund for her, beginning today. He will invest $5,000 per year in a mutual fund, beginning today, and he expects to earn an annual return of 8%. What is the expected value of the college fund when your sister enters college?
Answer:
FV= $29,333
Explanation:
Giving the following information:
Number of periods= 5 years
Annual investmemnt= $5,000
Interest rate= 0.08
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,000*[(1.08^5) - 1]} / 0.08
FV= $29,333
We know that most decisions are in part, based on expectations of the future. Suppose we have two people who are trying to decide whether to consume today (assume it is currently January 2008) or save for the future and consume one year later, in January 2009. One person, let's call him Joe, is basing his decision on the ex-ante real rate of interest like most of us do. The other person who has a crystal ball, we'll call her Crystal, can see exactly what the actual rate of inflation is going to be and thus, has perfect foresight and bases her decision on the ex-post real rate. Look at the difference in the ex-ante and ex-post real rates you calculated in #25 and # 26 above. Who would be more likely to save and who would be more likely to spend? A. Both Joe and Crystal are savers. B. Both Joe and Crystal are spenders. C. Crystal saves, Joe spends. D. Crystal spends, Joe saves.
Please see attachment for full question
Answer and Explanation:
please see attachment for answer and explanation
On November 1 of the current year, Rob Elliot invested $30,000 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $56,150 and total stockholders' equity of $37,785.
Cash Accounts Accounts Common Retained Fees Supplies
Recivable Land Payable Stock Earnings Dividends Earned Expense
$8,350.00 $15,500.00 $5,000.00 $5,750.00 $27,250.00 $6,450.00
Utilities Wages Miscellaneous
Expense Expense Expense
$4,625.00 $1,220.00 $400.00
Balance Income Retained Earnings
Sheet Statement Statement Amount
1. What is the amount reported for total
liabilities and stockholders' equity on
December 31? $54,400.00
2. What is the retained earnings amount
reported on December 31? $8,455.00
3. How much does GGE Enterprises Inc.
owe to its creditors?
4. How much cash is being held by GGE
Enterprises Inc.? $30,550.00
5. By what amount did retained earnings
increase or decrease during the period?
6. What is the amount of profit or loss during
December?
7. What were the total expenses for December? $9,205.00
8. How much was paid for utilities?
Answer:
1. What is the amount reported for total liabilities and stockholders' equity on December 31?
$56,150 (same as total assets)
2. What is the retained earnings amount reported on December 31?
= total equity - common stock = $37,785 - $30,000 = $7,785
3. How much does GGE Enterprises Inc. owe to its creditors?
accounts payable = $56,150 - $37,785 = $18,365
4. How much cash is being held by GGE Enterprises Inc.?
cash = $56,150 - $8,350 - $15,500 = $32,300
5. By what amount did retained earnings increase or decrease during the period?
$7,785 - $5,000.00 from Nov. = $2,785
6. What is the amount of profit or loss during December?
profit = increase in retained earnings + dividends = $2,785 + $5,750 = $8,535
7. What were the total expenses for December?
total expenses = fees earned - December's profit = $27,250 - $8,535 = $18,715
8. How much was paid for utilities?
$18,715 - $6,450 - $4,625 - $1,220 - $400 = $205
Explanation:
the numbers are all mixed, so I looked for a similar question:
Cash ? = $56,150 - $8,350 - $15,500 = $32,300
Accounts Receivable $8,350.00
Land $15,500.00
Accounts Payable ? = $56,150 - $37,785 = $18,365
Common Stock ? $30,000
Retained Earnings = $37,785 - $30,000 = $7,785 ($5,000.00 from Nov. + $2,785 from Dec.)
Dividends $5,750.00
Fees Earned $27,250.00
Supplies Expense $6,450.00
Utilities Expense ?
Wages Expense $4,625.00
Rent Expense $1,220.00
Miscellaneous Expense $400.00
You are given the following information regarding prices for a sample of stocks. PRICE Stock Number of Shares T T+1 A 1,000,000 60 80 B 10,000,000 20 35 C 30,000,000 18 25 a. Construct a price-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1.b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1.c. Briefly discuss the difference in the results for the two indexes.
Answer and Explanation:
Please find answer and explanation attached
How have the evolving business environment and the emergence of free agent workers affected make-or-buy talent decisions?
The evolving business environment and emergence of free agent workers affected have led to more rigorous processes before hiring workers.
What is Hiring?This is defined as the process of employing workers for different roles in an organization.
The increase in free agent workers and evolving business environment have led to more rigorous recruitment processes to get the best results.
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Hentzel Landscaping commenced its business on January 1, 20X1. During its first year of operations, Hentzel purchased supplies in the amount of $12,000 (debited to Supplies inventory), and of this amount, $3,000 were unused as of December 31, 20X1. On March 1, 20X1, Hentzel received $18,000 for landscaping services to be rendered for 18 months (beginning July 1, 20X1). This amount was credited to a liability called Deferred landscaping revenue. The company’s gasoline bill for $2,500 for the month of December 20X1 was not received until January 15, 20X2. No entry was made. The company borrowed $50,000 from HomeTown Financing on April 1, 20X1, at a 5% interest rate per annum. It credited a liability for notes payable. The principal, along with all the interest, is due on April 1, 20X2. On January 1, 20X1, the company purchased 10 lawnmowers at $3,000 each. It debited fixed assets. The lawnmowers are expected to last for three years with no salvage value. On December 31, 20X1, Hentzel did not record any adjusting entries with respect to these transactions.
Required:
Prepare all adjusting entries necessary to prepare financial state.
Answer:
Hentzel purchased supplies in the amount of $12,000 (debited to Supplies inventory), and of this amount, $3,000 were unused as of December 31, 20X1.
December 31, 20x1, supplies expense adjusting entry
Dr Supplies expense 9,000
Cr Supplies 9,000
On March 1, 20X1, Hentzel received $18,000 for landscaping services to be rendered for 18 months (beginning July 1, 20X1). This amount was credited to a liability called Deferred landscaping revenue.
December 31, 20x1, deferred revenue adjusting entry
Dr Deferred landscaping revenue 6,000
Cr Landscaping revenue 6,000
The company’s gasoline bill for $2,500 for the month of December 20X1 was not received until January 15, 20X2. No entry was made.
December 31, 20x1, gasoline expense adjusting entry
Dr Gasoline expense 2,500
Cr Gasoline payable 2,500
The company borrowed $50,000 from HomeTown Financing on April 1, 20X1, at a 5% interest rate per annum. It credited a liability for notes payable. The principal, along with all the interest, is due on April 1, 20X2.
December 31, 20x1, interest expense adjusting entry
Dr Interest expense 1,875
Cr Interest payable 1,875
On January 1, 20X1, the company purchased 10 lawnmowers at $3,000 each. It debited fixed assets. The lawnmowers are expected to last for three years with no salvage value.
December 31, 20x1, depreciation expense adjusting entry
Dr Depreciation expense 1,000
Cr Accumulated depreciation, lawnmowers 1,000
Preparation of all adjusting entries necessary to prepare financial statement.
Hentzel Landscaping
Hentzel purchased supplies in the amount of $12,000 (debited to Supplies inventory), and of this amount, $3,000 were unused as of December 31, 20X1.
December 31, 20x1, supplies expense adjusting entry
Dr Supplies expense 9,000
Cr Supplies 9,000
On March 1, 20X1, Hentzel received $18,000 for landscaping services to be rendered for 18 months (beginning July 1, 20X1). This amount was credited to a liability called Deferred landscaping revenue.
December 31, 20x1, deferred revenue adjusting entry
Dr Deferred landscaping revenue 6,000
Cr Landscaping revenue 6,000
The company’s gasoline bill for $2,500 for the month of December 20X1 was not received until January 15, 20X2. No entry was made.
December 31, 20x1, gasoline expense adjusting entry
Dr Gasoline expense 2,500
Cr Gasoline payable 2,500
The company borrowed $50,000 from HomeTown Financing on April 1, 20X1, at a 5% interest rate per annum. It credited a liability for notes payable. The principal, along with all the interest, is due on April 1, 20X2.
December 31, 20x1, interest expense adjusting entry
Dr Interest expense 1,875
Cr Interest payable 1,875
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Derick works as a customer service representative in a car showroom. He needs to interact with several customers every day. In which situation would Derick deliver the most effective customer service?
Answer: c) while handling a complaint that a customer is furious about
Explanation:
Answer:
while handling a complaint that a customer is furious about
Explanation: I took the test
The rate of flow of a continuous income stream (in thousands of dollars per day) is given by Find the total income produced during the first ten days of operation. Round to the nearest dollar.
Answer: $2397.9
Explanation:
Here is the complete question:
The rate of flow of a continuous income stream (in thousands of dollars per day) is given by f(t) = 1/t+1. Find the total income produced during the first ten days of operation.
The total Income is gotten as $2397.9. Check the attachment for further explanation.
SNC is considering working with Nutrilife on a half-size contract for its herbal nutraceutical product line, with an incremental sales benefit to the top line of $2 million (a one-time 20% increase). In addition, Ayurveda Naturals, the India-based supplier of herbs for the Nutrilife contract, is offering very favorable payment terms: 2/30 net 60. In other words, SNC could lower its accounts payable liability to $153,000 by paying Ayurveda Naturals within 30 days, thereby realizing a 2% discount on raw materials. What would you like to do about this opportunity?Accept or Decline2013 2014 2015 Post 2015Incremental Summary Income Statement ($ in thousands)Sales $2,000 $2,000 $2,000 $2,000Cost of Sales $1,833 $1,833 $1,833 $1,833EBIT $167 $167 $167 $167Incremental Balance Sheet ($ in thousands)Accounts Receivable $603 $603 $603 $603Inventories $452 $452 $452 $452Accounts Payable $151 $151 $151 $151
Answer and Explanation:
Answer and explanation attached