Answer:
The right approach is Option a (Bargaining power of suppliers).
Explanation:
The concept is such an industry influences the buyer's business climate and determines the potential including its buyer to attain profitability.The meaning is basically how very much jurisdiction a single provider has. By supplier, I represent the industries that create the manufactured goods that even the sellers refine into the finished product to something like the sellers throughout the business. If there are several suppliers during the sector because each supplier is indeed very poor.Financial Statements of a Manufacturing Firm The following events took place for Focault Inc. during July 20Y2, the first month of operations as a producer of road bikes: Purchased $598,700 of materials Used $514,900 of direct materials in production Incurred $444,000 of direct labor wages Applied factory overhead at a rate of 70% of direct labor cost Transferred $1,218,900 of work in process to finished goods Sold goods with a cost of $1,185,400 Sold goods for $2,121,900 Incurred $509,700 of selling expenses Incurred $189,700 of administrative expenses a. Prepare the July income statement for Focault. Assume that Focault uses the perpetual inventory method. Focault Inc. Income Statement For the Month Ended July 31, 20Y2 $ $ Selling and administrative expenses: $ Total selling and administrative expenses $ b. Determine the inventory balances at the end of the first month of operations. Materials inventory, July 31 $ Work in process inventory, July 31 $ Finished goods inventory, July 31 $
Answer and Explanation:
The Preparation of the July income statement for Focault is shown below:-
Focault Inc.
Income Statement
For the Month Ended July 31
Particulars Amount
Sales $2,121,900
Cost of goods sold $1,185,400
Gross profit $936,500
Selling and administrative expenses:
Selling expenses $509,700
Administrative expenses $189,700
Total selling and administrative
expenses $699,400
Net operating income $237,100
b. The computation of inventory balances at the end of the first month of operations is shown below:-
Particulars Amount
Materials inventory, July 31 $83,800
($598,700 - $514,900)
Work in process inventory, July 31 $50,800
($514,900 + $444,000 + ($444,000 × 70%) - $1,218,900)
Finished goods inventory, July 31 $33,500
($1,218,900 - $1,185,400)
Item7 1.25 points Return to questionItem 7Item 7 1.25 points In 1898, the first Green Jacket Golf Championship was held. The winner’s prize money was $230. In 2018, the winner’s check was $2,640,000. a. What was the annual percentage increase in the winner’s check over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the winner’s prize increases at the same rate, what will it be in 2056? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 1,234,567.89.)
Answer:
a. 8.10%
b. $50,930,776.45
Explanation:
a. The 2018 prize money can be expressed as a compounded amount of the 1898 amount in the manner;
2,640,000 = 230 * ( 1 + rate) ^ 120 years
Year 2018 - 1898 = 120 years
Solving for rate;
2,640,000/230 = ( 1 + rate) ^ 120 years
( 1 + rate) = (2,640,000/230) ^ 1/120
1 + rate = 1.081016
rate = 0.0810
= 8.10%
b. Number of periods = 2056 - 2018
= 38 years
= 2,640,000 * ( 1 + 8.10%) ^ 38
= $50,930,776.45
On February 5, 2018, Cinch Rental Corporation's board of directors declared a dividend of $0.35, to be paid on March 18, 2018, to the shareholders of record as of the close of business on March 9, 2018. Cinch has 6,200,000 shares of $0.01 par-value common stock authorized with 900,000 shares issued and outstanding. The company has no preferred stock.
Required:
Record the declaration of the explanations from any journal entries) dividend and the payment of the dividend.
Answer:
Feb 5
Dr Cash dividend (900,000 shares*.35) 315,000
Cr Dividend payable 315,000
Mar 18
Dr Dividend payable 315,000
Cr Cash 315,000
Explanation:
Preparation of the Journal entry to Record the declaration of the payment of the dividend.
Based on the information given we were told that the on Feb 5 the board of directors declared dividend of the amount of $0.35, which is to be paid on March 18 including 900,000 shares that was issued and outstanding which means that the company Journal entries will be:
Feb 5
Dr Cash dividend (900,000 shares*.35) 315,000
Cr Dividend payable 315,000
Mar 18
Dr Dividend payable 315,000
Cr Cash 315,000
Questions for the Opening Vignette Why is it important for IRS and for U.S. state governments to use data warehousing and business intelligence (BI) tools in managing state revenues? What were the challenges the state of Maryland was facing with regard to tax fraud? What was the solution they adopted? Do you agree with their approach? Why? What were the results that they obtained? Did the investment in BI and data warehousing pay off? What other problems and challenges do you think federal and state governments are having that can benefit from BI and data warehousing? What We Can Learn from
Answer:
I have typed each answer under it's corresponding question for easier understanding.
Explanation:
1. Why is it important for IRS and for U.S. state governments to use data warehousing and business intelligence (BI) tools in managing state revenues?
using Bi tools allows for better analysis and this woiuld make understanding and governance to be easier for the government. revenues can be very complex and difficut to understand but business intelligence tools can make it easier.
2. What were the challenges the state of Maryland was facing with regard to tax fraud?
the state of maryland was having issues with tax fraud due to fraudulent returns and they were having problems detecting and investigating this because of how time consuming the process was.
3. What was the solution they adopted?
As a solution the state used a data warehouse from teradata. this gave them the opportunity to be able to identify and trace data that showed patterns of fraudulent returns. priority was made to go after refund fraud.
4. Do you agree with their approach? Why?
yes i agree with their approach. the reason is because the use of this tools in tracing tax fraud was an efficient way of tracing the problem and through the results appropriateways on how to combat the problem would be adopted.
5. What were the results that they obtained? Did the investment in BI and data warehousing pay off?
through the use of these tools the state was able to recover about 7 million dollars. therefore the investment paid off.
6. What other problems and challenges do you think federal and state governments are having that can benefit from BI and data warehousing?
some other problems that the government is having which can benefit from these tools are
a. voter fraud
b. medical usage
c. other forms of tax issues.
Company X classifies the total transportation costs paid to deliver goods to customers as a mixed cost with respect to the units sold. During the current year, the units sold have decreased unexpectedly, but are still within the relevant range. Which of the following statement is (are) correct about the transportation costs? Group of answer choices The per unit transportation costs increase as the units sold decrease. The total transportation costs increase proportionally to the decrease of units sold. The per unit variable component of transportation costs remains constant. The per unit transportation costs decrease proportionally to the decrease of units sold. The total transportation costs decrease proportionally to the decrease of units sold.
Answer:
The per unit transportation costs increase as the units sold decrease.
The per unit variable component of transportation costs remains constant.
Explanation:
mixed costs are costs that share both a fixed component and a variable one, e.g. transportation costs generally are mixed because depreciation, insurance and sometimes even maintenance costs are fixed, while gasoline and drivers' wages are variable.
If total units transported decrease, then the fixed part of transportation costs will increase on a per unit basis. Even if the variable part remains stable, total costs per unit will still increase.
We can plug in some numbers:
Fixed expenses = $1,000 per month
variable costs = $2 per package
total packages sent during month 1 = 500
total costs = $1,000 + ($2 x 500) = $2,000
costs per unit = $4
if suddenly the number of packages delivered drops to 300
total costs = $1,000 + ($2 x 300) = $1,600
costs per unit = $5.33
a 40% decrease in the number of packages delivered resulted in a 33.33% increase in costs per unit delivered.
A local government operates on a calendar-year basis. Prepare journal entries to record the following transactions and events for calendar year 2018.
1. On February 1, 2018, borrowed $400,000 on tax anticipation notes (TANs). The TANs will be repaid with 1.0 percent interest on January 31, 2019.
2. To prepare for issuing financial statements for 2018, accrue interest on the TANs through December 31, 2018
3. Invested $100,000 in a certificate of deposit (CD) on April 1, 2018. The CD, which pays interest of 0.8 percent, will mature on September 30, 2018.4. The CD matured on September 30, 2018.
Answer:Please find answers in explanation column
Explanation:
1. Journal to record Short term borrowing
Date Account title Debit Credit
Feb. 1, 2018 Cash $400,000
Tax anticipation notes payable $400,000
2.Journal to record accrued interest payable on TAN)
Date Account title Debit Credit
Dec. 31, 2018 Expenditures – interest $3,666.67
Accrued interest payable $3,666.67
Calculation :Accrued interest= Principal x rate x period (time)
$400,000 x 1% x 11/12= $3,666.67
3. Journal to record investment in CD
Date Account title Debit Credit
April 1, 2018 Investments $100,000
Cash $100,000
4.Journal To record redemption of CD with interest
Date Account title Debit Credit
Sept. 30, 2018 Cash $100,400
Investments $100,000
Cash Revenues – interest income $400
Calculation
Accrued Interest
Principal x rate x period (time= )100, 000 x 0.8 %x 6/12)= $400
Cash = Investment + interest= $100,000 + $400 = $100,400
Dalinda loves her BMW Z4 car. It handles well around corners and has plenty of kick to make driving a pleasure. She takes the Z4 in regularly to the BMW dealership shop for oil changes, maintenance, and services, and she continues to experience quality service each time. She trusts the brand and recommends purchasing BMW cars to her friends and family. What is the best way to describe what Dalinda’s collective brand experience with BMW?
Why is ethics important in business give an example of how an unethical practice can affect a business
Answer:
being ethical ensures a trustworthy reputation in business, and will make sure your less likely to be sued for malpractice or involved in a major scandal. for an example, probably just make a unethical financial situation or involving social or environmental ethics
The 2017 Annual Report of Tootsie Roll Industries contains the following information. (in millions) December 31, 2017 December 31, 2016 Total assets $930.9 $920.1 Total liabilities 197.1 208.6 Net sales 515.7 517.4 Net income 80.7 67.2 Compute the following ratios for Tootsie Roll for 2017. (a) Asset turnover (Round answer to 3 decimal places, e.g. 0.851 times.) enter the asset turnover rounded to 4 decimal places times (b) Return on assets (Round answer to 2 decimal places, e.g. 4.87%.) enter the return on assets in percentages rounded to 2 decimal places % (c) Profit margin on sales (Round answer to 2 decimal place
Answer:
a. 0.557 times
b. 8.72%
c. 0.16
Explanation:
a. Asset turnover = Net sales ÷ Average total assets
We will calculate the average total asset first
Average total asset = [Beginning total assets - ending total assets)] / 2
= [(930.9 + 920.1)] / 2
= 925.5
Asset turnover = 515.7/925.5
= 0.557 times
b. Return on assets = Net income/Average total assets
= 80.7/925.5
= 0.087196
= 0.087196 × 100
= 8.72%
c. Profit margin on sales = Net income/Net sales
= 80.7/515.7
= 0.16
A luxury bathtub manufacturer offered scented bubble bath foams and massage coupons as a gimmick when their bathtubs did not sell. Their bubble foam became famous among some women and led to a line of exclusive bath products for women. They established shops in various regional locations and roped in celebrities to market their products to enhance sales. Now its products are sold through retail outlets and online sites throughout the world. Which of the following is accurate?a. Roping in celebrities to market their products was an emergent strategy.b. Creating a sub-brand that offered exclusive bath products for women was an emergent strategy.c. Establishing shops in regional locations was an emergent strategy.d. Creating a worldwide presence through retail outlets and online sites was an emergent strategy.e. Offering scented bubble bath foams and massage coupons was an emergent strategy.
Answer:
Option B: Creating a sub-brand that offered exclusive bath products for women was an emergent strategy.
Explanation:
Item1 Time Remaining 2 hours 44 minutes 44 seconds02:44:44 Item 1Item 1 Time Remaining 2 hours 44 minutes 44 seconds02:44:44 On April 1, Garcia Publishing Company received $19,080 from Otisco, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year
Answer and Explanation:
The journal entry is shown below:
Unearned revenue $4,770
To fees earned $4,770
(Being the adjusting entry is passed)
The calculation is shown below:
= Received amount ÷ total months × calculated months
= $19,080 ÷ 36 months × 9 months
= $4,770
Hence, the above entry should be recorded and the same is to be considered
The FOMC has instructed the FRBNY Trading Desk to purchase $820 million in U.S. Treasury securities. The Federal Reserve has currently set the reserve requirement at 5 percent of transaction deposits. Assume U.S. banks withdraw all excess reserves and give out loans. a. Assume also that borrowers eventually return all of these funds to their banks in the form of transaction deposits. What is the full effect of this purchase on bank deposits and the money supply? b. What is the full effect of this purchase on bank deposits and the money supply if borrowers return only 95 percent of these funds to their banks in the form of transaction deposits? (For all requirements, enter your answers in billions. Round your final answers to 2 decimal places. (i.e., 5,500,000,000 should be entered as 5.50).)
Answer: See explanation
Explanation:
a. . Assume also that borrowers eventually return all of these funds to their banks in the form of transaction deposits. What is the full effect of this purchase on bank deposits and the money supply?
Based on the above scenario, there'll be an increase in bank deposits and money supply by $16.4 billion.
= (1/5%) × $820 million
= (1/0.05) × $820 million
= 20 × $820 million
= 16,400,000,000
= 16.4 billion
b.What is the full effect of this purchase on bank deposits and the money supply if borrowersreturn only 95 percent of these funds to their banks in the form of transaction deposits?
This will lead to an increase in the bank deposits and money supply by $8.2 billion
= [1/(0.05+(1-0.95)] × $820 million
= [1/0.05+0.05] × $820 million
= (1/0.1) × $820 million
= 10 × $820 million
= $8.2 billion
Royal Company wants to raise $51.5MM to open a plant overseas. To achieve this goal, the company decides to do an underwritten IPO to raise the funds. It hires an investment bank, who estimates that legal, accounting, SEC, taxes and other direct costs will be $1,455,000. Royal anticipates that its indirect costs associated with the process will total $587,934. The investment bank also estimates that the IPO shares can be priced at $31 per share. Royal Company agrees to pay the investment bank a 9.5% spread. How much money does Royal Company actually receive from the IPO after direct expenses
Answer: $51.5MM
Explanation:
Royal Company wants to raise $51.5MM for the plant and this is the amount they will receive from the IPO after direct expenses.
As for the Direct expenses, Royal Company will raise an amount that will account for the amount of $51.5MM that they want to raise and still pay off any expenses (including direct expenses) that arise.
In other words, They will raise more than $51.5MM so that they may be able to get $51.5MM.
Jamie's Motor Home Sales currently sells 1,100 Class A motor homes, 2,200 Class C motor homes, and 2,800 pop-up trailers each year. Jamie is considering adding a mid-range camper and expects that if she does so she can sell 1,500 of them. However, if the new camper is added, Jamie expects that her Class A sales will decline to 850 units while the Class C camper sales decline to 2,000. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $140,000 each. Class C homes are priced at $59,500 and the pop-ups sell for $5,000 each. The new mid-range camper will sell for $42,900. What is the erosion cost of adding the mid-range camper
Answer:
$46,900,000
Explanation:
Calculation for the erosion cost of adding the mid-range camper
Erosion cost = [(1,100 - 850) × $140,000] + [(2,200 -2,000) × $59,500]
Erosion cost =(250×$140,000)+(200×$59,500)
Erosion cost =$35,000,000+$11,900,000
Erosion cost = $46,900,000
Therefore the erosion cost of adding the mid-range camper will be $46,900,000
Suppose that lower production costs increases the supply of wheat, such that more wheat is supplied at each price level. After the increase in supply, the equilibrium quantity _____.
Answer:
Equilibrium quantity Increase
Explanation:
Equilibrium quantity is the level of supply that's meet the market demand of a product. At equilibrium quantity, there is no excess supply nor shortage in quantity supplied.
Should the cost of producing wheat decline, farmers will supply more wheat in the market. An increase in supply without a corresponding increase in demand results in reduced prices. Many suppliers will complete with few buyers. Due to a decline in prices, the equilibrium quantity increases because farmers will sell more quantities at the new low prices. The supply and demand curves will intersect a higher position in the graph, reflecting the new point where increased supply meets the demand at lower prices.
You are faced with the probability distribution of the HPR on the stock market index fund given in Spreadsheet 5.1 of the text. Suppose the price of a put option on a share of the index fund with exercise price of $110 and time to expiration of 1 year is $12, and suppose the risk-free interest rate is 6% per year. You are contemplating investing $107.55 in a 1-year CD and simultaneously buying a call option on the stock market index fund with an exercise price of $110 and expiration of 1 year. What is the probability distribution of your dollar return at the end of the year
Answer:
Follows are the solution to this question:
Explanation:
The price of one share plus one choice for the index fund is $112. Its distribution of HPR probabilities on the portfolio is:
[tex]\boxed{\left \begin{array}{cccc} \text{economy states} & \text{Probability}& \text{Endig price+Put+Dividend}&HPR\\ Excellent &0.25& \$ 131.00& \frac{(131-112)}{112} = 17\% \\Good &0.45&\$ 114.00& \frac{(114-112)}{112} = 1.8 \% \\poor &0.25& \$ 113.00& \frac{(113.50 -112)}{112} = 1.3 \% \\ Crash&0.5& \$ 112.00& \frac{(112-112)}{112} = 0.0 \% \end{array}\right}[/tex] The chances of dollar return distributions on the CD plus call option can be defined in the attached file please find it:
(c) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease. unanswered If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will decrease. unanswered If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will be unaffected. unanswered If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected. unanswered
Answer:
Customer and Product Margin under Activity-based Costing and Traditional Costing
True Statements:
1. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.
2. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected.
Explanation:
Customer Margin is the difference between the total revenue generated from a customer minus the acquisition and service costs. In the above instance, the customer margin decreases because of the costs of servicing the customer's frequent orders. Customer service costs are usually higher with more frequent orders, when activity-based costing is employed because frequent orders increase the activity level and the associated costs.
Product Margin is the profit margin generated per product. It is the markup on the cost of the product. It shows the difference in amount between the selling price and the manufacturing cost. Frequent orders cannot change the product margin under the traditional costing technique unlike it does with the activity-based costing technique.
Answer:
Customer and Product Margin under Activity-based Costing and Traditional Costing
Explanation:gey
When you introduce your product to a focus group or a small geographical location, which activity does it signify?
cite three real life situations where quadratic equations are illustrated. Formulate quadratic equations out of these situations then describe each.
Answer:
I want to know the sides of a pizza if the width is 9 inches larger than the height and the area is 250 squared inches.
My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.
My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.
Explanation:
To solve this you just have to think on the unknown value and represent it as "X" in the first problem we do not know the length or width but we have a values given between them, so if "x" is the height then the width becomes "x+9" so those two values multiplied become the area.
[tex]x(x+9)=250\\x^{2} +9x=250\\x^{2} +9x-250=0\\[/tex]
With this you just keep solving the others.
My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.
2m as an area and the height is "x"
[tex]x(x+-5)=2\\x^{2} +.5x=2\\x^{2} +.5x-2=0\\[/tex]
My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.
57,600 is the area and width will be "x"
[tex]x(x+200)=57,600\\x^{2} +200x=57,600\\x^{2} +200x-57,600=0\\[/tex]
Is some number of occupational illnesses and injuries an acceptable part of doing business? Why or why not? Explain your answers.
Answer:
Explanation:
No injury or illness is ever an acceptable part of doing business. It reflects poorly on the company if they don't take the proper steps to prevent illness and injury. OSHA works hard to make sure work places are safe, and levy large fines if they don't meet safety requirements. In addition, if an injury or illness occurs the company can be sued, depending on the severity, the company could go out of business.
The following information pertains to Windsor Solar Panels, Inc.
July 1 Sold $128,000 of solar panels to Wildhorse Company with terms 3/15, n/30. Windsor uses the gross method to record cash discounts. Windsor estimates allowances of $1,500 will be honored on this sale.
12 Sold $82,000 of solar panels to Novak Corp. with terms of 4/10, n/60. Windsor expects no allowances related to this sale.
18 Novak Corp. paid Windsor for its July 12 purchase.
20 Wildhorse calls to indicate that the panels purchased on July 1 work well, but the color is not quite right. Windsor grants a credit of $2,100 as compensation.
29 Wildhorse Company paid Windsor for its July 1 purchase.
31 Windsor expects allowances of $5,340 to be grated in the future related to solar panel sales in July.
Prepare the necessary journal entries for Larkspur. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
Date Account Titles and Explanation Credit Debit
July 18
Answer:
Windsor Solar Panels, Inc.
Date Account Titles and Explanation Debit Credit
July 1 Accounts Receivable (Wildhorse Co.) $128,000
Sales Revenue $128,000
To record the sale of solar panels, terms 3/15, n/30.
July 12 Accounts Receivable (Novak Corp.) $82,000
Sales Revenue $82,000
To record the sale of solar panels, terms 4/10, n/60.
July 18 Cash Account $78,720
Cash Discount $3,280
Accounts Receivable (Novak Corp.) $82,000
To record the receipt of payment from Novak Corp.
July 20 Sales Allowances $2,100
Accounts Receivable (Wildhorse Co.) $2,100
To record the credit allowance granted to Wildhorse Company.
July 29 Cash Account $125,900
Accounts Receivable (Wildhorse Co.) $125,900
To record the receipt of payment from Wildhorse Company
July 31 "No Entry"
Explanation:
Windsor Solar Panels, Inc. will record the above journal entries to initially record the business transactions that take place within the period. These journal entries determine the accounts to be debited and the ones to be credited in the general journal.
Markets can be characterized by the lifepan of the
assets traded. The market for assets with
a life of less than One
year is
Answer:
Money markets
Explanation:
The money market is a formal exchange market that brings together lenders and borrowers of short-term debt securities. The money market facilitates governments and corporates to sell short-term securities to meet their cash flow shortages.
Money markets enable institutional and retail investors with excess cash flow to invest in quality short-term investments. The money markets provide investors with options for investments and diversification.
Ms. Shaver, a single taxpayer, has $213,000 taxable income, which includes a $19,580 qualified dividend from Benbow Inc. Use Tax rates for capital gains and qualified dividends. Required: Compute her income tax on this dividend assuming that on the basis of Ms. Shaver’s instruction, Benbow made a $19,580 direct deposit into her bank account. Compute her income tax on this dividend assuming that on the basis of Ms. Shaver’s instruction, Benbow reinvested the dividend in additional Benbow shares.
Answer:
Reinvested will be "$ 2,937". The further explanation is given below.
Explanation:
According to the IRS, on either the order of the corresponding lender, the cash dividend earned or reinvested seems to be taxable during the same year.
Income tax on dividend will be:
⇒ [tex]19,580\times 15 \ percent[/tex]
⇒ [tex]2,937[/tex] ($)
When the amount is reinvested, the income tax will be:
⇒ [tex]19,580\times 15 \ percent[/tex]
⇒ [tex]2,937[/tex] ($)
Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.May 11 Sydney accepts delivery of $31,500 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $21,105. Sydney pays $635 cash to Express Shipping for delivery charges on the merchandise.12 Sydney returns $1,500 of the $31,500 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,005.20 Sydney pays Troy for the amount owed. Troy receives the cash immediately.(Both Sydney and Troy use a perpetual inventory system and the gross method.)1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.
Answer and Explanation:
The Journal entries are prepared below:-
1. Merchandise inventory Dr, $31,500
To Accounts payable $31,500
(Being purchase of inventory on the account is recorded)
2. Merchandise inventory Dr, $635
To Cash $635
(Being cash paid is recorded)
3. Accounts payable Dr, $1,500
To Merchandise inventory $1,500
(Being return inventory is recorded)
4. Accounts payable Dr, $30,000
To Merchandise inventory $900 ($30,000 × 3%)
To Cash $29,100 ($30,000 × 97%)
(Being cash paid is recorded)
b. 1. Accounts receivable Dr, $31,500
To Sales $31,500
(Being sales is recorded)
2. Cost of goods sold Dr, $21,105
To Merchandise inventory $21,105
(Being cost of goods sold is recorded)
3. Sales return and allowances Dr, $1,500
To Accounts receivable $1,500
(Being returns is recorded)
4. Merchandise inventory Dr, $1,005
To cost of goods sold $1,005
(Being returned goods is recorded)
5. Cash Dr, $29,100
Sales discounts Dr, $900
To Accounts receivable $30,000
(Being cash received is recorded)
Matt inherited as a trust a fifteen-year annuity-immediate with annual payments. He has been told that the annuity payments earn compound interest at a level rate and that at the end of fifteen years, their accumulated value will be $37,804.39. He has further been assured that figured at this same rate of interest, the value of his inheritance was $15,077.10. The trust executor will not reveal the amount of the annual payments. Determine this amount and also the annual effective interest rate earned by the annuity payments.
Answer:
effective annual interest rate = 6.32%
annual payment = $1,585
Explanation:
I believe that this is an ordinary annuity, so we can use the future and present value of an ordinary annuity formula:
FV = annual payment x FV annuity factor, so annual payment = FV / FV annuity factor
PV = annual payment x PV annuity factor, so annual payment = PV / PV annuity factor
we can equal both equations:
PV / PV annuity factor = FV / FV annuity factor
FV / PV = FV annuity factor / PV annuity factor
$37,804.39 / $15,077.10 = FV annuity factor / PV annuity factor
2.5074 = FV annuity factor / PV annuity factor
the easiest way to solve this is to use an annuity table since we already know that there are 15 periods (I used an excel spreadsheet):
%,15 periods FV annuity factor PV annuity factor FV/PV
1 16.097 13.865 1.1609
2 17.293 12.849 1.34586
3 18.599 11.938 1.55797
4 20.024 11.118 1.80104
5 21.579 10.380 2.07890
6 23.276 9.7122 2.3966
7 25.129 9.1079 2.7590
8 27.152 8.5595 3.1721
9 29.361 8.0607 3.6425
10 31.772 7.6061 4.4112
The interest rate must be between 6 and 7%:
%,15 periods FV annuity factor PV annuity factor FV/PV
6 23.276 9.7122 2.3966
6.1 23.45404 9.6461 2.43145
6.2 23.63369 9.5858 2.46549
6.3 23.81491 9.52467 2.50034
6.31 23.83312 9.51851 2.50387
6.32 23.85135 9.51236 2.5074
6.4 23.99773 9.46337 2.53585
effective interest rate = 6.32% per year
annual payment = $37,804.39 / 23.85135 = $1,585
Tickets Now contracts with the producer of Riverdance to sell tickets online. Tickets Now charges each customer a fee of $4 per ticket and receives $10 per ticket from the producer. Tickets Now does not take control of the ticket inventory. Average ticket price for the event is $150. How much revenue should Tickets Now recognize for each Riverdance ticket sold? Group of answer choices $14 because both the fee from the customer and the producer are earned $150 because the $140 is cost of goods sold paid to the Riverdance producer None of the above $186 because the $140 is cost of goods sold paid to the Riverdance producer $4 because the $10 from the producer is similar to a negative cost of goods sold
Answer:
The correct option: $14 because both the fee from the customer and the producer are earned
Explanation:
Based on the information given we were told that Tickets Now charges each of their customer a fee amount of $4 per ticket in which they receives the amount of $10 per ticket from the producer which means that the amount of revenue Tickets should Now recognize for each Riverdance ticket they sold will be $14 ($10 per ticket +$4 per ticket) because both the fee from the customer and the producer are earned.
Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2019, and December 31, 2020. This information is presented below:
Cost Lower-of-Cost-or-Market
12/31/19 $356,000 $327,000
12/31/20 420,000 395,000
(a) Prepare the journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/19 12/31/20
(b) Prepare journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/19 12/31/20
(c) Which of the two methods above provides the higher net income in each year?
Answer:
1. 12/31/19
Dr Cost of Goods Sold29,000
Cr Allowance to reduce29,000
Inventory to Market
12/31/20
Dr Allowance to Reduce 4,000
Inventory to Market
Cr Cost of Goods Sold 4,000
2. 12/31/19
Dr Loss due to market 29,000
Decline of Inventory
Cr Allowance to reduce29,000
Inventory to Market
12/31/20
Dr Allowance to Reduce 4,000
Inventory to Market
Cr Loss due to market 4,000
Decline of Inventory
C) Both the two methods provides the same net income each year
Explanation:
1. Preparation of the journal entries for both December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and perpetual inventory system
First step is to compute for inventory to market for December 31, 2019 and December 31, 2020
December 31, 2019
Cost of inventory at 12/31/19 $356,000
Less:Lower of cost or market at 12/31/19 (327,000)
Allowance amount needed to reduce inventoryto market (a)$29,000
December 31, 2020
Cost of inventory at 12/31/20 $420,000
Less: Lower of cost or market at 12/31/20(395,000)
Allowance amount needed to reduce inventoryto market (b)$25,000
Second step is to find the Recovery of previously recognized loss amount
Recovery of previously recognized loss = (a) – (b)
Recovery of previously recognized loss= $29,000 - $25,000
Recovery of previously recognized loss= $4,000
Now let prepare the Journal entry for December 31, 2019 and December 31, 2020
12/31/19
Dr Cost of Goods Sold29,000
Cr Allowance to reduce29,000
Inventory to Market
12/31/20
Dr Allowance to Reduce 4,000
Inventory to Market
Cr Cost of Goods Sold 4,000
2. Preparation for the journal entries for both Dec. 31, 2019 and Dec 31, 2020,assuming that the inventory is recorded at market under a perpetual system
12/31/19
Dr Loss due to market 29,000
Decline of Inventory
Cr Allowance to reduce29,000
Inventory to Market
12/31/20
Dr Allowance to Reduce 4,000
Inventory to Market
Cr Loss due to market 4,000
Decline of Inventory
C) Both the two methods provides the same net income each year
For a Windows laptop, what is the best way to save power when the computer will not be used for an extended period?
A. Sleep the system
B. Turn off by power button
C. Use battery power
D. Hibernate the system
Answer:
b turn off by power button
Which people would make up a flight crew? (Select all that apply.)
O captain
flight engineer
O avionic mechanic
O co-pilot
For the next fiscal year, you forecast net income of and ending assets of . Your firm's payout ratio is Your beginning stockholders' equity is and your beginning total liabilities are . Your non-debt liabilities such as accounts payable are forecasted to increase by . Assume your beginning debt is . What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The amount of equity to issue will be
Answer:
Since the numbers are missing, I looked for a similar question:
"you forecast net income of $50,000 and ending assets of $500,000. Your firm's payout ratio is 10%. Your beginning stockholders equity is $300,000 and your beginning total liabilities are $120,000. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,000. What is you net new financing needed for next year?"
we must first determine the debt to assets ratio = $120,000 / ($300,000 + $120,000) = 0.2857
since total assets are expected to be $500,000, then total liabilities + equity will also = $500,000 (basic accounting equation)
since debt to equity ratio should remain constant, then:
total liabilities = $500,000 x 0.2857 = $142,850
total equity = $500,000 - $142,850 = $357,150
we can verify our calculations:
old debt to equity ratio = $120,000 / $300,000 = 0.4
new debt to equity ratio = $142,820 / $357,150 = 0.4
since your current equity = $300,000, you will need to raise $57,150
your current liabilities + future accounts payable = $120,000 + $10,000 = $130,000, therefore, you will need to issue debt for $142,850 - $130,000 = $12,850