Answer:
$121,012.53
Explanation:
principal = $300,000
APR = 8%
n = 30 years
annual payment = $25,580
assuming that interest is compounded annually, then the annual payment should be = $300,000 / 11.25778 (PV annuity factor, 8%, 30 periods) = $26,648.24
I prepared an amortization schedule to calculate the balloon payment: $121,012.53
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
The city of Ashkelon, on the eastern end of the Mediterranean Sea, is one of the major cities of the Philistines. A powerful merchant family (known henceforth as The Family) of this city has to decide how to allocate its vast but finite resources to further their own wealth and the glory and influence of their state. Some trade routes use camel caravans and go to the southern deserts, where they may trade in salt and gold with the great inland African nations; others may go north and west, oversea by galley, toward the Greeks; others may push their foul-mouthed, humped mounts east, overland toward Sumeria, to trade in spices and the crafted goods specific to that region. Some of the routes are over more arduous terrain than others, so make take longer to pay off (no revenue is realized by The Family until the caravan returns to Ashkelon). The financial costs and returns of each route are as follows (in Phils, the currency of the Philistines:
Route Costs,Period 0 Revenue, Period1 Revenue, Period 2 Revenue, Period 3
African Route - 75,000 215,000
Greek Route - 50,000 140,000
Sumerian Route -125,000 385,000
Costs are incurred at the end of year zero, and revenues accrue at the end of Periods 1, 2, and 3, for each respective route (for instance, the African caravan returns at the end of period two, at which time its revenue is realized). The discount rate for the shipping company is 5%.
a. Calculate the NPV, B/C ratio, Payback period, and IRR for each route option
b. Rank the route options according to NPV, B/C ratio, Payback period, and IRR
c. If the company had unlimited funds, which trade routes would you recommend the family pursue? Why? Be sure to consider all combinations of routes, including multiple caravans on the same trade route
d. Given that the family can only invest 150,000 Phils, which combination of trade routes would you recommend pursuing? Why?
Answer:
African Route costs = -75,000, period 1 revenues = 215,000
Greek Route costs = -50,000, period 2 revenues = 140,000
Sumerian Route costs = -125,000, period 3 revenues = 385,000
discount rate = 5%
a) African route:
NPV = -75,000 + 215,000/1.05 = 129,762
B/C ratio = 215/75 = 2.87
Payback = 1 period
IRR = 187%
Greek route:
NPV = -50,000 + 140,000/1.05² = 76,984
B/C ratio = 140/50 = 2.8
Payback = 2 periods
IRR = 67%
Sumerian route
NPV = -125,000 + 385,000/1.05³ = 332,577
B/C ratio = 385/125 = 3.08
Payback = 3 periods
IRR = 45%
b) rank according to:
NPV = Sumerian route, African route, Greek route
B/C ratio = Sumerian route, African route, Greek route
Payback = African route, Greek route, Sumerian route
IRR = African route, Greek route, Sumerian route
c) if the family had unlimited resources, they should invest in the 3 routes since all their NPVs are positive.
d) African and Greek routes since they yield the highest gains (IRR).
On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 4,000 units of Comfort Office Keyboard to one of its clients, Bionics, Inc., at a fixed price of $68,000, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2021. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher, and that the coupon will be applied to $40,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.00 per unit. Required: 1. How many performance obligations are in this contract
Answer:
this contract includes 2 performance obligations
Explanation:
the performance obligations are as follows:
performance obligation 1 refers to providing 4,000 keyboards to Bionicsperformance obligation 2 refers to the special discount options which could be redeemed by the client resulting in a material right. If the client had not made this purchase, then it wouldn't be entitled to the special discount.A performance obligation is created whenever a business promises a customer that it will deliver or provide a good or service.
A can of dog food is on sale for 20% off the original price. If the original price is $1.35, what is the discount?
Answer:
this is pretty simple $ 00.27
What is one main objective in the study of economics?
recognizing the types of services available to everyone
recognizing the relationship between producers and consumers
recognizing the reasons why consumers supply services
recognizing the difference between producers and consumers
Answer: brecognizing the difference between producers and consumers
Explanation:
Economics is the part of social studies that helps us for knowing the production, distribution, and consumption of goods and services to the targeted customers. it mainly focuses upon the environmental and market factor that helps in the marketing and production of goods and services.
One of the main objectives for the study of economics is to recognize the difference between the producer and the consumers.
Reason:
The main objective of economics is to determine and bifurcate the producer and consumer as they are both different.
The producer is the person who is making the finished goods from the raw materials. The producer takes the raw materials either from the market or from the farmer. The entire cost of goods is determined by the producer by the name of the direct cost of goods.
While the consumer is the final user of the produced items. The consumer is the last person in the product cycle. The consumer has to pay the entire cost and expenses being added by various parties of the product cycle.
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Refer to the following items on the balance sheets of a firm for the years ending December 31, 2018 and 2019.
Item 2018 2019
Accounts Payable $729,500 $917,300
Long Term Debt $1,267,700 $1,093,400
Common Stock ($1 par) $2,184,000 $2,471,300
Retained Earnings $3,227,100 $3,419,800
If the firm's interest expense on its 2019 income statement was $312,920, calculate the net cash flow to the firm's creditors in 2019.
a) $312,920
b) $138,620
c) $425,920
d) $487,220
Answer: d) $487,220
Explanation:
The net cash flow to creditors in 2019 is calculated by the formula;
= Long term debt in 2018 - Long term debt in 2019 + Interest expense in 2019
= 1,267,700 - 1,093,400 + 312,920
= $487,220
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
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.
X Corporation reported the following data for the month of August: Inventories: Beginning Ending Raw materials $36,000 $24,000 Work in process $23,000 $17,000 Finished goods $37,000 $55,000 Additional information: Budgeted manufacturing overhead cost $672,000 Budgeted direct labor cost $1,680,000 Raw materials purchased $79,000 Manufacturing overhead cost incurred $51,975 Indirect materials included in manufacturing overhead cost incurred $8,000 Manufacturing overhead cost applied to Work in Process using direct labor cost 37800 Job #82 started in August Direct materials used $4,000 Direct labor cost $6,000 Round your answers to the nearest dollar. Fill in the blank without $ or comma or period, e.g., 12345 What was Job# 82's total manufacturing cost in August using normal costing?
Answer:
$12,400
Explanation:
The computation of Job 82's total manufacturing cost in August using normal costing us shown below:-
Overhead rate = Budgeted Overhead ÷ Budgeted Labor cost
= $672,000 ÷ 1,680,000
= 40%
Applied overhead = 6000 × 40%
= 2,400
The Total cost of Job 82 = Direct material + Direct labor + Overhead applied
= $4,000 + $6,000 + $2,400
= $12,400
(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
You sell $4,000 per week in bags of dog food at 30% margin. You sell $3,000 per week in dog toys at 45% margin. Which generates more margin for you?
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $890,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Years Amount
1-6 $89,000
7 79,000
8 69,000
9 59,000
10 49,000
If purchased, the restaurant would be held for 10 years and then sold for an estimated $790,000.
Required:
Determine the present value, assuming that John desires an 11% rate of return on this investment. (Assume that all cash flows occur at the end of the year.) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
Answer:
$763,057
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1-6 = $89,000
Cash flow in year 7 = 79,000
Cash flow in year 8 = 69,000
Cash flow in year 9= 59,000
Cash flow in year 10 = 49,000 + $790,000 = 839,000
I = 11%
Present value = $763,057
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Time period used to compute indirect cost rates. Capitola Manufacturing produces surfboards. The company uses a normal-costing system and allocates manufacturing overhead on the basis of direct manufacturing labor-hours. Most of the company's production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Pacific Wholesale, due to large fluctuations in price. The owner of Capitola has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year:
Quarter
1 2 3 4
Surfboards manufactured and sold 500 400 100 250
It takes 2 direct manufacturing labor-hours to make each board. The actual direct material cost is $65.00 per board. The actual direct manufacturing labor rate is $20 per hour. The budgeted variable manufacturing overhead rate is $16 per direct manufacturing labor-hour. Budgeted fixed manufacturing overhead costs are $20,000 each quarter.
1. Calculate the total manufacturing cost per unit for the second and third quarters assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter.
2. Calculate the total manufacturing cost per unit for the second and third quarters assuming the company allocates manufacturing overhead costs based on an annual budgeted manufacturing overhead rate.
3. Capitola Manufacturing prices its surfboards at manufacturing cost plus 20%. Why might Pacific Wholesale be seeing large fluctuations in the prices of boards? Which of the methods described in requirements 1 and 2 would you recommend Capitola use? Explain.
Answer:
1) production cost per unit (Q2) = $187
production cost per unit (Q3) = $337
2) production cost per unit (Q2) = $201
production cost per unit (Q3) = $201
3) Capitola should allocate manufacturing costs based on total annual production because if it allocates them on a quarterly basis, the unit costs in the quarters were production is lower will be much higher. E.g. in Q3 only 100 units were produced, therefore production costs are 80% higher than Q2 costs. If costs are allocated on an annual basis, then production costs will be stable and the company will benefit. The company actually lost money when it sold its production during quarters 1 and 2 since overhead costs were not correctly applied.
Explanation:
Quarter
1 2 3 4
Units produced 500 400 100 250
costs per unit:
2 labor hours x $20 = $40direct materials = $65variable overhead = $16total = $121 per unit
fixed overhead = $20,000
1) total production costs second quarter:
materials = 400 x $65 = $26,000
direct labor = 400 x $40 = $16,000
variable overhead = 400 x 2 x $16 = $12,800
fixed overhead = $20,000
total = $74,800
production cost per unit (Q2) = $187
total production costs third quarter:
materials = 100 x $65 = $6,500
direct labor = 100 x $40 = $4,000
variable overhead = 100 x 2 x $16 = $3,200
fixed overhead = $20,000
total = $33,700
production cost per unit (Q3) = $337
2) total production costs second quarter:
materials = 400 x $65 = $26,000
direct labor = 400 x $40 = $16,000
variable overhead = 400 x 2 x $16 = $12,800
fixed overhead = ($80,000 / 1,250) x 400 = $25,600
total = $80,400
production cost per unit (Q2) = $201
total production costs third quarter:
materials = 100 x $65 = $6,500
direct labor = 100 x $40 = $4,000
variable overhead = 100 x 2 x $16 = $3,200
fixed overhead = ($80,000 / 1,250) x 100 = $6,400
total = $20,100
production cost per unit (Q3) = $201
Your annual sales are $240,000. The sales are spread evenly over four quarters. What are your sales in each quarter?
Answer:
60000
Explanation:
240,000/4
Answer:
60000
Explanation:
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.
Which characteristic describes the privatization of Social Security?
A. increases the employer’s contribution to Social Security
B. raises the retirement age to claim full benefits to 70
C. enables Americans to invest their Social Security contributions in the stock market
D. reduces benefits across the board by 13 percent
E. obtains a loan from the Fed
Answer:
the answer is C because it makes sense...
Enables Americans to invest their Social Security contributions in the stock market - describes the privatization of Social Security. Hence option C is correct.
What are the characteristic of the privatization of Social Security?Privatization of Social Security refers to a proposal where individuals are allowed to invest their Social Security contributions into individual retirement accounts (IRAs) or other investments instead of the government-managed Social Security Trust Fund.
Under this system, individuals would have control over their retirement funds and would be able to invest in the stock market, bonds, and other financial instruments. This would also mean that individuals would be responsible for managing their own retirement funds and bearing the associated risks.
Options A and B do not describe privatization but rather refer to potential changes in the current Social Security system. A reduction in benefits, which is not necessarily associated with privatization. Option E is not related to the privatization of Social Security at all, but rather refers to obtaining a loan from the Federal Reserve.
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The city of Ashkelon, on the eastern end of the Mediterranean Sea, is one of the major cities of the Philistines. A powerful merchant family (known henceforth as The Family) of this city has to decide how to allocate its vast but finite resources to further their own wealth and the glory and influence of their state. Some trade routes use camel caravans and go to the southern deserts, where they may trade in salt and gold with the great inland African nations; others may go north and west, oversea by galley, toward the Greeks; others may push their foul-mouthed, humped mounts east, overland toward Sumeria, to trade in spices and the crafted goods specific to that region. Some of the routes are over more arduous terrain than others, so make take longer to pay off (no revenue is realized by The Family until the caravan returns to Ashkelon). The financial costs and returns of each route are as follows (in Phils, the currency of the Philistines):
Route Costs, Period 0 Revenue, Period1 Revenue, Period 2 Revenue, Period 3
African Route -75,000 215,000
Greek Route -50,000 140,000
Sumerian Route -125,000 385,000
Costs are incurred at the end of year zero, and revenues accrue at the end of Periods 1, 2, and 3, for each respective route (for instance, the African caravan returns at the end of period two, at which time its revenue is realized). The discount rate for the shipping company is 5%.
Required:
a. Calculate the NPV, B/C ratio, Payback period, and IRR for each route option.
b. Rank the route options according to NPV, B/C ratio, Payback period, and IRR.
c. If the company had unlimited funds, which trade routes would you recommend the family pursue? Why? Be sure to consider all combinations of routes, including multiple caravans on the same trade route.
d. Given that the family can only invest 150,000 Phils, which combination of trade routes would you recommend pursuing? Why?
Answer:
African Route costs = -75,000, period 1 revenues = 215,000
Greek Route costs = -50,000, period 2 revenues = 140,000
Sumerian Route costs = -125,000, period 3 revenues = 385,000
discount rate = 5%
a) African route:
NPV = -75,000 + 215,000/1.05 = 129,762
B/C ratio = 215/75 = 2.87
Payback = 1 period
IRR = 187%
Greek route:
NPV = -50,000 + 140,000/1.05² = 76,984
B/C ratio = 140/50 = 2.8
Payback = 2 periods
IRR = 67%
Sumerian route
NPV = -125,000 + 385,000/1.05³ = 332,577
B/C ratio = 385/125 = 3.08
Payback = 3 periods
IRR = 45%
b) rank according to:
NPV = Sumerian route, African route, Greek route
B/C ratio = Sumerian route, African route, Greek route
Payback = African route, Greek route, Sumerian route
IRR = African route, Greek route, Sumerian route
c) if the family had unlimited resources, they should invest in the 3 routes since all their NPVs are positive.
d) African and Greek routes since they yield the highest gains (IRR).
Kingbird Windows manufactures and sells custom storm windows for three-season porches. Kingbird also provides installation service for the windows The installation process does not involve changes in the windows, so this service can be performed by other vendors. Kingbird enters into the following contract on July 1, 2017, with a local homeowner.
The customer purchases windows for a price of $2,470 and chooses Kingbird to do the installation. Kingbird charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $580. The customer pays Kingbird $1,940 (which equals the standalone selling price of the windows, which have a cost of $1,050) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Kingbird completes installation on October 15, 2017, and the customer pays the balance due.
Prepare the journal entries for Kingbird in 2017.
Answer:
Kingbird Windows
July 1, 2017:
Debit Cash Account $1,940
Credit Unearned Sales Revenue $1,940
To record the receipt of cash from customer.
Sept. 1, 2017:
Debit Unearned Sales Revenue $1,940
Credit Sales Revenue $1,940
To record the sale of windows.
Debit Inventory $1,050
Credit Cost of Goods Sold $1,050
To record the cost of goods sold.
Oct. 15, 2017:
Debit Cash Account $530
Credit Service Revenue $530
To record the service revenue earned for installation of windows.
Explanation:
Since Kingbird's selling price equals $1,940, which the customer pays in advance, this amount is taken as the sales revenue. Though the stand-alone price of installation is estimated to be $580, only $530 is recorded as revenue for installation because the $580 remains an estimate of a stand-alone item.
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:
Jason Day Company had bonds outstanding with a maturity value of $300,000. On April 30, 2020, when these bonds had an unamortized discount of $10,000, they were called in at 104. To pay for these bonds, Day had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 103 (face value $300,000).
Required:
Compute the gain or loss.
Answer: Loss of $22,000
Explanation:
Gain (loss) = Net Carrying Value of Bonds recalled - Price bond called at
Net Carrying Value of Bonds
= Par value - Unamortized discount
= 300,000 - 10,000
= $290,000
Gain (loss) = 290,000 - (300,000 * 104)
= ($22,000)
Mickey is a 12-year-old dialysis patient. Three times a week for the entire year he and his mother, Sue, drive 20 miles one way to Mickey’s dialysis clinic. On the way home, they go 10 miles out of their way to stop at Mickey’s favorite restaurant. Their total round trip is 50 miles per day. How many of those miles, if any, can Sue use to calculate an itemized deduction for transportation? Use the mileage rate in effect for 2019.
Answer:
The right approach will be "$ 1123.2".
Explanation:
The number of miles to be used will be:
= [tex]40 \ miles \ round \ trip\times 3 \ trips \ per \ week\times 52 weeks[/tex]
= [tex]6240 \ miles[/tex]
Now,
The item deduction will be:
= [tex]Number \ of \ used \ miles\times 18 \ cents \ per \ mile[/tex]
= [tex]6240\times 1123.2[/tex]
= [tex]1123.2[/tex] ($)
Instructions: Round your answers to 2 decimal places. If you are entering a negative number include a minus sign. a. Using the midpoint method, what is the price elasticity of demand from a price of $4.00 to a price of $4.50 per iced coffee? , and demand is said to be price (Click to select) . b. Using the midpoint method, what is the price elasticity of demand from a price of $2.00 to a price of $3.00 per iced coffee? , and demand is said to be price (Click to select) . c. Using the midpoint method, what is the price elasticity of demand from a price of $0.50 to a price of $1.00 per iced coffee? , and demand is said to be price (Click to select) .
Answer:
The answer is below
Explanation:
The graph is attached below.
a) The price elasticity of demand is given by:
price elasticity of demand = [tex]\frac{\%\ change\ in\ quantity }{\%\ change\ in\ price}=\frac{\Delta Q}{\Delta P}[/tex]
[tex]\Delta Q=\frac{Q_2-Q_1}{(Q_2+Q_1)/2} \\\\\Delta P=\frac{P_2-P_1}{(P_2+P_1)/2}[/tex]
Price of elasticity demand = [tex]\frac{\frac{Q_2-Q_1}{(Q_2+Q_1)/2} }{\frac{P_2-P_1}{(P_2+P_1)/2} }[/tex]
Price of elasticity demand = [tex]\frac{\frac{50-100}{(50+100)/2} }{\frac{4.5-4}{(4.5+4.0)/2} }=\frac{-0.6667}{0.1176} =5.7[/tex]
Since the price of elasticity demand > 1, it is elastic
b) Price of elasticity demand = [tex]\frac{\frac{200-300}{(200+300)/2} }{\frac{3-2}{(3+2)/2} }=\frac{-0.4}{0.4} =1[/tex]
Since the price of elasticity demand = 1, it is unitary
c) Price of elasticity demand = [tex]\frac{\frac{400-450}{(400+450)/2} }{\frac{1-0.5}{(1+0.5)/2} }=\frac{-0.1176}{0.6667} =0.18[/tex]
Since the price of elasticity demand < 1, it is inelastic
Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $8.40 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,600 shirts to break-even. The after tax net income last year was $5,220. Donnelly's expectations for the coming year include the following: (CMA adapted) The sales price of the T-shirts will be $12. Variable cost to manufacture will increase by one-third. Fixed costs will increase by 10%. The income tax rate of 40% will be unchanged. The selling price that would maintain the same contribution margin ratio as last year is:
Answer:
$11.23
Explanation:
Calculation for the selling price that would maintain the same contribution margin ratio as last year
Selling price per unit = $8.40
Variable cost per unit = $2.25
First step is to the Contribution margin per unit using this formula
Contribution margin per unit = Selling price per unit-Variable cost per unit
Contribution margin per unit= $8.40-$2.25
Contribution margin per unit = $6.15
Second step is to find the Contribution margin ratio using this formula
Contribution margin ratio= Contribution margin / Selling price per unit
Contribution margin ratio= $6.15/$8.40
Contribution margin ratio= 0.73*100
Contribution margin ratio=73%
Third step is to calculate for the Increase in variable cost per unit For coming year
Variable cost per unit will increase by 1/3
Increase in variable cost per unit = 6.15 x 1/3
Increase in variable cost per unit= $2.05
Variable cost per unit = 6.15+2.05
Variable cost per unit = $8.2
Last step is to find the selling price per unit using this formula
Selling price per unit =Variable cost per unit /Contribution margin ratio
Let plug in the formula
Selling price per unit = $8.2/0.73
Selling price per unit= $11.23
Therefore the selling price that would maintain the same contribution margin ratio as last year is $11.23
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.
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
When you introduce your product to a focus group or a small geographical location, which activity does it signify?
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?
Peabody, Inc., sells fireworks. The company’s marketing director developed the following cost of goods sold budget for April, May, June, and July. April May June July Budgeted cost of goods sold $79,000 $89,000 $99,000 $105,000 Peabody had a beginning inventory balance of $2,700 on April 1 and a beginning balance in accounts payable of $15,000. The company desires to maintain an ending inventory balance equal to 20 percent of the next period’s cost of goods sold. Peabody makes all purchases on account. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Peabody will report on the end-of-quarter pro forma balance sheet. c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Peabody will report on the end-of-quarter pro forma balance sheet. This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next Visit question mapQuestion 7 of 7 Total7 of 7 Prev
Answer:
Peabody, Inc.
a. Inventory Purchase Budget:
April May June
Budgeted cost of goods sold $79,000 $89,000 $99,000
Add Ending Inventory 17,800 19,800 21,000
Cost of Goods Available 4 Sale $96,800 118,800 120,000
Less Beginning Inventory 2,700 17,800 19,80
Purchases $94,100 $101,000 $100,200
b. The amount of Ending Inventory that Peabody will report on the end-of-quarter proforma balance sheet is:
$21,000
c. A Schedule of Cash Payments for Inventory:
April May June
70% in month of purchase 65,870 70,700 70,140
30% in the month following 15,000 28,230 30,300
Total payment $80,870 $98,930 $100,440
d. Balance of the Accounts Payable is:
$30,060
Explanation:
a) Data and Calculations:
1. Cost of Goods Sold Budget:
April May June July
Budgeted cost of goods sold $79,000 $89,000 $99,000 $105,000
Add Ending Inventory 17,800 19,800 21,000
Cost of Goods Available 4 Sale $96,800 118,800 120,000
Less Beginning Inventory 2,700 17,800 19,800 21,000
Purchases $94,100 $101,000 $100,200
Accounts Payable
Beginning balance $15,000 $28,230 $30,300
Purchases $94,100 $101,000 $100,200
Less payment:
70% in month of purchase 65,870 70,700 70,140
30% in the month following 15,000 28,230 30,300
Ending balance $28,230 $30,300 $30,060
You’ve observed the following returns on Yamauchi Corporation’s stock over the past five years: −10 percent, 24 percent, 21 percent, 11 percent, and 8 percent. The average inflation rate over this period was 3.1 percent and the average T-bill rate over the period was 4.1 percent. a. What was the average real return on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the average nominal risk premium on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
Year Return
1 -0.10
2 0.24
3 0.21
4 0.11
5 0.06
0.540
Average return = 0.540 / 5
Average return =0.108
Average return = 10.80%
a. Average Real Return = [( 1 + Average return) / (1+ inflation rate)] - 1
Average Real Return = [(1+0.1080)/(1+0.081)] - 1
Average Real Return = 0.0747
Average Real Return = 7.47%
b. Average Nominal Risk Premium = Average Return - Risk free rate
Average Nominal Risk Premium = 0.1080 - 0.041
Average Nominal Risk Premium = 0.067
Average Nominal Risk Premium = 6.70%
The average real return on the stock is 7.47% while the average nominal risk premium on the stock is 6.70%.
From the information given, the average return will be calculated thus:
= 0.540 / 5
= 0.108
Average return = 10.80%
Therefore, the average real return will be:
= [( 1 + Average return) / (1+ inflation rate)] - 1
= [(1+0.1080) / (1+0.081)] - 1
= 0.0747
= 7.47%
Also, the average nominal risk premium will be:
= Average Return - Risk free rate
= 0.1080 - 0.041
= 0.067
= 6.70%
Therefore, the average real return on the stock is 7.47% while the average nominal risk premium on the stock is 6.70%.
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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