Answer:
a. 2.50:1
Explanation:
Calculation for Current ratio
First step is to Calculate the Total current assets :
Cash $130,000
Accounts receivables $100,000
Inventory $110,000
Prepaid insurance $60,000
Total current assets (a) $400,000
Second step is to Calculate the Total current liabilities :
Accounts payable $140,000
Salaries and wages payable $20,000
Total current liabilities (b) $160,000
Now let find the current ratio using this formula
Current ratio = Total current assets / Total current liabilities
Let plug in the formula
Current ratio =$400,000 / $160,000
Current ratio =2.50 : 1
Therefore the Current ratio will be 2.50 : 1
The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm. Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining-balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/2021 year-end financial statements for Company B:
Income Statement
Depreciation expense $12,500
Balance Sheet
Assets:
Plant and equipment, at cost $125,000
Less: Accumulated depreciation (50,000)
Net $75,000
You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $125,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero.
Required:
a. In order to compare performance with Company A, estimate what B's depreciation expense would have been for 2021?
b. If Company B decided to switch depreciation methods in 2021 from the straight line to the double-declining-balance method, prepare the 2021 journal entry to record depreciation for the year
Answer:
a. Company B's depreciation expense for 2021 is $12,800
b. Accumulated Depreciation (Dr.) $23,800
Plant and equipment (Cr.) $23,800
Explanation:
The depreciation expense of 2021 will be $12,800. The cost of plant and equipment is $125,000.
Depreciation 2018 : $125,000 * 10% = 12,500 * 2 = $25,000
2019 : $125,000 - $25000 = $100,000 * 10% * 2 = $20,000
2020: $100,000 - $20,000 = $80,000 * 10% * 2 = $16,000
2021 : $80,000 - $16,000 = 64,000 * 10% * 2 = $12,800
Due to use, wear and tear, or obsolescence, the monetary worth of an object decreases with time. Depreciation is the term used to describe this reduction.
A.Company B's depreciation expense for 2021 is $12,800
B. Accumulated Depreciation (Dr.) $23,800
Plant and equipment (Cr.) $23,800
Solution:-
The depreciation expense of 2021 will be $12,800. The cost of plant and equipment is $125,000.
Depreciation 2018 : $125,000 * 10% = 12,500 * 2 = $25,000
2019 : $125,000 - $25000 = $100,000 * 10% * 2 = $20,000
2020: $100,000 - $20,000 = $80,000 * 10% * 2 = $16,000
2021 : $80,000 - $16,000 = 64,000 * 10% * 2 = $12,800
To know more about depreciation, refer to the link:-
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In the long run, a decrease in the money supply will
decrease real Gross Domestic Product (GDP).
decrease the price level.
increase real Gross Domestic Product (GDP).
increase the price level.
Answer:
decrease real Gross Domestic Product (GDP).
Explanation:
GDP represents the total value of a country output. The calculation of GDP using the expensive method is identical to that of the aggregate demand. Aggregate demand is the total of government spending, consumer spending, investment, and net exports. Therefore, GDP and aggregate demand are the same.
A decrease in the money supply leads to firms and households having less money to spend. Reduction in disposable income results in reduced consumer spending, which has adverse effects on aggregate demand. Therefore, reduced money supply results in a decline in consumer spending and reduced aggregate demand, leading to a reduction in a country's output.
Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his firm's competitors. This analysis is called ___________ analysis. Group of answer choices competitor challenger strategic participant industry
Answer:
Competitor analysis
Explanation:
In any business, an analysis of competition is very essential as it gives an understanding of your competitive posting relative to competitors, provide or generate insights into competitive strategies. Competitor analysis encompasses insights benefited to influence and develop business strategy,identify current and potential competitors. the bargaining of power of supplier, the bargaining power of customers the threat of new entrants and also the threat of substitute products and services.
Suppose the beta of Microsoft is 1.13, the risk-free rate is 3 percent, and the market risk premium is 8 percent. Use CAPM to calculate the expected return for Microsoft. Group of answer choices 12.04% 15.66% 13.94% 8.65%
Answer:the Expected return for Microsoft = 12.04%
Explanation:
According to Capital Asset Pricing Model CAPM, we have that
Expected return= risk free rate+(betaXmarket risk premium)
= 3 + ( 8 x 1.13)
=3+9.04
=12.04%
Therefore the Expected return for Microsoft = 12.04%
In general, research and development costs for projects other than software development should be: A. None of the answer choices are correct. B. Expensed if unsuccessful; capitalized if successful. C. Expensed in the period they are determined to be unsuccessful. D. Expensed in the period they are determined to be successful. E. Deferred pending determination of success.
Answer:
Research and development costs must be expended during the period that they occur, they are not capitalized. Whether the project is successful or not does not affect the expensing of the R&D costs.
Both options C and D are correct:
C. Expensed in the period they are determined to be unsuccessful. D. Expensed in the period they are determined to be successful.Explanation:
On the other hand, software companies are allowed to capitalize some (not all) R&D costs.
To repeat an important concept, the focus of marketing must constantly involve what 4 things?_________________
YO! PLEASE HELP ME
__________________________________________________________________________________
37 POINTS
Answer:
point
Explanation:
this are the point
1. What, historically, have been Apple's competitive advantages in the personal computer market (compared to other PC makers)?
The following selected accounts from the Bramble Corp.’s general ledger are presented below for the year ended December 31, 2022:
Advertising expense $54,000 Interest revenue $32,000
Common stock 249,000 Inventory 66,000
Cost of goods sold 1,084,000 Rent revenue 24,000
Depreciation expense 124,000 Retained earnings 534,000
Dividends 149,000 Salaries and wages expense 674,000
Freight-out 24,000 Sales discounts 8,600
Income tax expense 69,000 Sales returns and allowances 43,000
Insurance expense 15,000 Sales revenue 2,399,000
Interest expense 69,000
Required:
Prepare a multiple-step income statement.
Answer:
$ $
Sales Revenue 2,399,000
Less:
Sales return and allowances 43,000
Sales discount 8,600
2,347,400
Net sales
Cost of goods sold 1,084,000
Gross profit 1,263,400
Operating expenses;
Advertising expense 54,000
Depreciation expense 124,000
Freight out 24,000
Insurance expense 15,000
Salaries and wages expense 674,000
Total operating expense 891,000
Income from operation 372,400
Other revenue and gains
Interest revenue 32,000
Rent revenue 24,000
56,000
Other expenses and loss
Interest expense 69,000
Income before income taxes 359,400
Income tax expense 69,000
Net income 290,400
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $19 1,000. The trial balances for the two companies on December 31, 20X7, included the following amounts:
Prince Corporation Sword Company
Debit Credit Debit Credit
Cash $94,000 $39,000
Accounts Receivable 53,000 58,000
Inventory 188,000 108,000
Land 92,000 34,000
Buildings and Equipment 494,000 161,000
Investment in Sword
Company 217,000
Cost of Goods Sold 494,000 257,000
Depreciation Expense 24,000 14,000
Other Expenses 74,000 74,000
Dividends Declared 56,000 26,000
Accumulated Depreciation $151,000 $70,000
Accounts Payable 64,000 28,000
Mortgages Payable 189,000 141,000
Common Stock 294,000 45,000
Retained Earnings 348,000 84,000
Sales 685,000 403,000
Income from Sword
Company Prince
Corporation 55,000
$1,786,000 $1,786,000 $771,000 $771,000
Additional Information
1. On January 1, 20X7, Lime reported net assets with a book value of $150,000. A total of $20,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7.
2. Lime's depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment.
3. Jersey used the equity method in accounting for its investment in Lime.
4. Detailed analysis of receivables and payables showed that Sword owed Prince $23,000 on December 31, 20x7.
Required:
Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for 20x7
Answer:
Explanation:
two companies on December 31, 20X7
On December 31, 2020, Reagan Inc. signed a lease with Silver Leasing Co. for some equipment having a seven-year useful life. The lease payments are made by Reagan annually, beginning at signing date. Title does not transfer to the lessee, so the equipment will be returned to the lessor on December 31, 2026. There is no purchase option, and Reagan guarantees a residual value to the lessor on termination of the lease. Reagan's lease amortization schedule appears below:
Decrease in Outstanding
Dec. 31 Payments Interest Balance Balance
2020 $410,442
2020 $74,700 $74,700 335,742
2021 $74,700 $20,145 54,555 281,187
2022 $74,700 16,871 57,829 223,358
2023 $74,700 13,401 61,299 162,059
2024 $74,700 9,724 64,976 97,083
2025 $74,700 5,825 68,875 28,208
2026 $29,900 1,692 28,208 0
What is the amount of residual value guaranteed by Reagan to the lessor?
Answer: $29,900
Explanation:
Residual value guaranteed is the amount that the lessee promises to pay in the last year including the repayment and the interest payment.
= $28,208 + 1,692
= $29,900
PLEASE HELP What platforms do digital media campaigns use to reach customers?
Question 1 options:
Websites
Social Media
Live Chats
All of the Above
1. Define a red ocean vs. a blue ocean strategy.
2. For one of the products in your business simulation (action cameras for UAV drones), discuss whether you are in a red ocean or a blue ocean.
3. Identify and discuss the blue ocean four actions framework.
4. For one of the products in your business simulation (action cameras for UAV drones), discuss the components of a current value cure and a new value curve.
Answer:
1. Define a red ocean vs. a blue ocean strategy.
A red ocean strategy occurs in a marketplace that is saturated with more or less similar products.
A blue ocean strategy occurs in a marketplace that does not have market saturation. Where there are no close substitute products.
2. For one of the products in your business simulation (action cameras for UAV drones), discuss whether you are in a red ocean or a blue ocean.
Action cameras are part of a red ocean strategy because the market for action cameras is saturated, with many competitors providing a similar product.
UAV drones are part of a blue ocean strategy because the product offers an unique service, and there are very few companies that provide this good.
3. Identify and discuss the blue ocean four actions framework.
The four actions are: raising quality standards to a new level, creating new quality standards, reducing some factors below quality standards, and eliminate some factors that are commonly used in the industry.
4. For one of the products in your business simulation (action cameras for UAV drones), discuss the components of a current value cure and a new value curve.
UAV Drones are part of the blue ocean strategy, and as a result, they have a new value curve. However, the market could become part of a red ocean strategy if enough competitors enter the market.
This is why UAV Drones producers should cotinually revise the four actions frameworks in order to develop the drones and keep the competitive advantage, and the blue ocean enviroment.
A project has annual depreciation of $25,500, costs of $101,900, and sales of $150,500. The applicable tax rate is 34 percent. What is the operating cash flow
Answer:
$48,600
Explanation:
Operating Cash flow is the cash generated from operating/trading activities of a firm. It is very important to include only the cash transactions and ignore any non -cash items.
Thus,
Operating Cash flow = $150,500 - $101,900
= $48,600
Alpha Industries is considering a project with an initial cost of $8.2 million. The project will produce cash inflows of $1.93 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.67% and a cost of equity of 11.31%. The debt-equity ratio is 0.62 and the tax rate is 21%. What is the net present value of the project
Answer:
$347,941.73
Explanation:
First, find the Weighted Average Cost of Capital (WACC). WACC is the minimum return that a project must offer before it can be accepted. It is thus used to discount the future cash flows of a project to its Present Value.
WACC = Ke × E/V + Kd × D/V
where,
Ke = cost of equity
= 11.31%
E/V = Market Weight of Equity
= (1/1.62 × 100)
= 61.73%
Kd = After tax cost of debt
= 5.67% × ( 1 - 0.21)
= 4.48 %
D/V = Market Weight of Debt
= 0.65/1.65 × 100
= 39.40%
Therefore,
WACC = 11.31% × 0.6773 + 4.48 % × 0.3940
= 9.43 %
Next, find the net present value of the project using a financial calculator as follows :
CFj -$8,200,000
CFj $1,930,000
CFj $1,930,000
CFj $1,930,000
CFj $1,930,000
CFj $1,930,000
i/yr = 9.43 %
Shift NPV = $347,941.73
How has the introduction of these markets, technologies and resources affected the lifestyle of the people of Cuba
Answer:
he economy of Cuba is a largely planned economy dominated by state-run enterprises. The government of Cuba owns and operates most industries and most of the labor force is employed by the state. Following the fall of the Soviet Union in 1991, the ruling Communist Party of Cuba encouraged the formation of worker co-operatives and self-employment. However, greater private property and free market rights were granted by the 2019 Constitution.[10][11] It has also been acknowledged that foreign market investment in various Cuban economic sectors increased before 2019 as well.[12][13]
As of 2000, public-sector employment was 76% and private-sector employment (mainly composed of self-employment) was 23% - compared to the 1981 ratio of 91% to 8%.[14] Investment is restricted and requires approval by the government. The government sets most prices and rations goods to citizens. In 2016 Cuba ranked 68th out of 182 countries, with a Human Development Index of 0.775, much higher than its GDP per capita rank (95th).[15]As of 2012, the country's public debt comprised 35.3% of GDP, inflation (CDP) was 5.5%, and GDP growth was 3%.[16]
Housing and transportation costs are low. Cubans receive government-subsidized education, healthcare and food subsidies.[17]
The country achieved a more even distribution of income after the Cuban Revolution of 1953–1959,[citation needed] which was followed by an economic embargo by the United States (1960- ). During the Cold War period, the Cuban economy was heavily dependent on subsidies from the Soviet Union, valued at $65 billion in total from 1960 to 1990 (over three times as the entirety of U.S. economic aid to Latin America), an average of $2.17 billion a year.[18] This accounted for anywhere between 10% and 40% of Cuban GDP, depending on the year.[19] While the massive Soviet subsidies did enable Cuba's enormous state budget, they did not lead to a more advanced or sustainable Cuban economy; although described by economists as "a relatively highly developed Latin American export economy" in 1959 and the early 1960s, Cuba's basic economic structure changed very little between then and 1990. Tobacco products such as cigars and cigarettes were the only manufactured products among Cuba's leading exports, and even these were produced by a preindustrial process. The Cuban economy remained inefficient and over-specialized in a few highly subsidized commodities provided by the Soviet bloc countries.[20] Following the collapse of the Soviet Union, Cuba's GDP declined by 33% between 1990 and 1993, partially due to the loss of Soviet subsidies[21] and a crash in sugar prices in the early 1990s. It rebounded in the early 2000s due to a combination of marginal liberalization of the economy and heavy subsidies from the friendly government of Venezuela, which provided Cuba with low-cost oil and other subsidies worth up to 12% of Cuban GDP annually.[22] Cuba retains high levels of healthcare and education.[23]
Contents
1 History
1.1 Before the Revolution
1.2 Cuban Revolution
1.3 Special Period
1.4 Recovery
1.5 Post-Fidel reforms
1.5.1 International debt negotiations
2 Sectors
2.1 Energy production
2.1.1 Energy sector
2.2 Agriculture
2.3 Industry
2.4 Services
2.4.1 Tourism
2.4.2 Retail
2.5 Finance
2.6 Foreign investment and trade
2.7 Currencies
2.8 Private businesses
3 Wages, Development, and Pensions
4 Public facilities
5 Connection with Venezuela
6 Economic freedom
7 Taxes and revenues
8 See also
9 References
9.1 Citations
9.2 Sources
10 External links
History
Before the Revolution
Although Cuba belonged to the high-income countries of Latin America since the 1870s, income inequality was high, accompanied by capit
Explanation:
hope it helps i took a long time plz mark as brainly
During 2017, its first year of operations as a delivery service, Sarasota Corp. entered into the following transactions.
1. Issued shares of common stock to investors in exchange for $103,000 in cash.
2. Borrowed $45,000 by issuing bonds.
3. Purchased delivery trucks for $61,000 cash.
4. Received $18,000 from customers for services performed.
5. Purchased supplies for $4,900 on account.
6. Paid rent of $5,400.
7. Performed services on account for $12,000.
8. Paid salaries of $26,100.
9. Paid a dividend of $11,200 to shareholders.
Required:
Show the effect of each transaction on the accounting equation.
Answer:
1.Equity = Increase ($103,000) and Assets = Increase ($103,000)
2.Assets = Increase ($45,000) and Liabilities = Increase ($45,000)
3. Assets = Increase ($61,000) and Liabilities = Increase ($61,000)
4. Equity = Increase ($18,000) and Assets = Increase ($18,000)
5. Assets = Increase ($4,900) and Liabilities = Increase ($4,900)
6. Equity = Decrease ($5,400) and Assets = Decrease ($5,400)
7. Equity = Increase ($12,000) and Assets = Increase ($12,000)
8. Equity = Decrease ($26,100) and Assets = Decrease ($26,100)
9. Equity = Decrease ( $11,200) and Assets = Decrease ( $11,200)
Explanation:
Accounting Equation is written as;
Equity = Assets - Liabilities
So, from each of the transactions given identify the elements Assets, Liability and Equity affected.
DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $8,000, an estimated life of 10 years, a salvage value of $1,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. Machine A37Y has a first cost of $8,000, a life of 10 years, and no salvage value. Its annual operating costs will be $260 regardless of the number of gumdrops produced. MARR is 6%/year, and 30 million gumdrops ware produced each year.
Based on an internal rate of return analysis, which machine should be recommended?
Answer:
I would recommend Machine 7745
Explanation:
Machine 7745
initial outlay = $8,000
operational costs per year = $300
depreciation cost per year = $700
salvage value (at year 10) = $1,000
total costs per year (1 - 9) = $1,000
total costs year 10 = $0
using an excel spreadsheet, the IRR = 2%. Since you are analyzing costs only, not incremental revenue, then you must select the project with the lowest IRR.
Machine A37Y
initial outlay = $8,000
operational costs per year = $260
depreciation cost per year = $800
total costs per year (1 - 10) = $1,060
using an excel spreadsheet, the IRR = 4%
Fit-for-Life Foods reports the following income statement accounts for the year ended December 31.
Gain on sale of equipment $6,350 Depreciation expense—Office copier $600
Office supplies expense 770 Sales discounts 15,700
Insurance expense 1,240 Sales returns and allowances 4,000
Sales 215,000 TV advertising expense 2,100
Office salaries expense 31,500 Interest revenue 600
Rent expense—Selling space 11,000 Cost of goods sold 88,100
Sales staff wages 23,000 Sales commission expense 13,600
Required:
Prepare a multiple-step income statement.
Answer: Check attachment
Explanation:
Note that, in the attachment, the total expense was calculated as the addition of the selling expense and the general and administrative expenses. This will be:
= $49700 + $34110
= $83810
Operating income was calculated as:
= Gross profit - Total expenses
= $107200 - $83810
= $23390
Check the attachment for further details.
You are an administrator working for the Maine Department of Environmental Protection, a state administrative agency. You are tasked with implementing a new and controversial pollution control rule. The media will be watching closely to ensure all required procedures are followed. Local citizens are requesting that the rule be implemented immediately and without a hearing because, they argue, the need for controls are so acute. A California environmental group is requesting that you consider the impacts of the rule on their state. A manufacturing lobbyist has asked you to decrease relevant pollution standards in the rule by 90%, even though you have significant evidence that current pollution levels are dangerously high. Assuming that Maine administrative law, including the Administrative Procedure Act, is substantially the same as federal law discussed in this chapter, evaluate your responses to these requests in light of rules you need to follow. You want to avoid having your rule held unlawful and set aside by a court.
Answer:
the answer to this question has been well explained. Thank you!
Explanation:
the environmental protection department has to apply the pollution control rule through a good examination of the effect it would have on all stakeholders if it is passed.
local citizens: for this group the best way to respond to their request is by making sure that the rule is applied in a timely manner. they have to be given the assurance that environmental implications would be reduced to the highest possible extent by this rule and that this rule would prove to be effective.
california environmental group: the request of this group is valid and they have to get the assurance that the effect of rule on the state have been studied well enough and that policies to lower environmental effects would be put in place as much as possible.
manufacturing lobbyist: theirs is a critical request. passing the rule would obviously increase necessary pollution standards. to ensure the lobbyist is made awarebof this, administrative agency has to have a meeting with the lobbyist and the person has to be made aware of the new position and current standards that are obtainable to organizations that are in manufacturing, as well the opportunities that are open to them. it is good to do this clearly in other to avoid any future confrontations of any kind.
"What is the allowable MACRS depreciation on Evergreen’s property in the current year if Evergreen does not elect out of bonus depreciation?"
Answer:
the list of assets is missing, so I looked for a similar question and found the following:
MACRS depreciation for machinery is 10 years, and the depreciation % for the first year using the half year convention is 10% ⇒ depreciation expense = $70,000 x 10% = $7,000
MACRS depreciation for computer equipment is 5 years, and the depreciation % for the first year using the half year convention is 20% ⇒ depreciation expense = $10,000 x 20% = $2,000
MACRS depreciation for the delivery truck is 5 years, and the depreciation % for the first year using the half year convention is 20% ⇒ depreciation expense = $23,000 x 20% = $4,600
MACRS depreciation for furniture is 7 years, and you can use the mid-quarter convention since furniture represents more than 40% of total assets placed in to service. The depreciation % for the first year, second quarter using the mid-quarter convention is 17.85% (the half year convention depreciation rate is 14.29%) ⇒ depreciation expense = $150,000 x 17.85% = $26,775
total depreciation expense = $40,375
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense—Store Equipment, Sales Salaries Expense, Rent Expense—Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative.
NELSON COMPANY Unadjusted Trial Balance January 31
Debit Credit
Cash $22,150
Merchandise inventory 13,000
Store supplies 5,100
Prepaid insurance 2,800
Store equipment 42,800
Accumulated depreciation—Store equipment $19,250
Accounts payable 17,000
Common stock 4,000
Retained earnings 25,000
Dividends 2,100
Sales 115,900
Sales discounts 2,100
Sales returns and allowances 2,000
Cost of goods sold 38,000
Depreciation expense—Store equipment 0
Sales salaries expense 12,900
Office salaries expense 12,900
Insurance expense 0
Rent expense—Selling space 8,000
Rent expense—Office space 8,000
Store supplies expense 0
Advertising expense 9,300
Totals $181,150 $181,150
Additional Information:
a. Store supplies still available at fiscal year-end amount to $2,550.
b. Expired insurance, an administrative expense, for the fiscal year is $1,720.
c. Depreciation expense on store equipment, a selling expense, is $6,500 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,720 of inventory is still available at fiscal year-end.
Required:
a. Compute the current ratios as of January 31, 2017.
b. Prepare a multiple-step income statement for the year ended January 31.
c. Prepare a single-step income statement for the year ended January 31.
Answer:
a. Store supplies still available at fiscal year-end amount to $2,550.
Dr Supplies expense 2,550
Cr Supplies 2,550
b. Expired insurance, an administrative expense, for the fiscal year is $1,720.
Dr Insurance expense 1,720
Cr Prepaid insurance 1,720
c. Depreciation expense on store equipment, a selling expense, is $6,500 for the fiscal year.
Dr Depreciation expense 6,500
Cr Accumulated depreciation, equipment 6,500
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,720 of inventory is still available at fiscal year-end.
Dr Cost of goods sold 2,280
Cr Merchandise inventory 2,280
Cash $22,150
Merchandise inventory 10,720
Store supplies 2,550
Prepaid insurance 1,080
Store equipment 42,800
Accumulated depreciation—Store equipment $25,750
Accounts payable 17,000
Common stock 4,000
Retained earnings 25,000
Dividends 2,100
Sales 115,900
Sales discounts 2,100
Sales returns and allowances 2,000
Cost of goods sold 40,280
Depreciation expense—Store equipment 6,500
Sales salaries expense 12,900
Office salaries expense 12,900
Insurance expense 1,720
Rent expense—Selling space 8,000
Rent expense—Office space 8,000
Store supplies expense 2,550
Advertising expense 9,300
Totals $187,425 $187,425
a) current ratio = current assets / current liabilities = $36,050 / $17,000 = 2.12
c) Nelson company
Income Statement
For the month ended January 31, 202x
Revenues:
Net sales $111,800Expenses:
Cost of goods sold $40,280 Depreciation expense - equipment $6,500Sales salaries expense $12,900 Office salaries expense $12,900 Insurance expense $1,720 Rent expense - Selling space $8,000 Rent expense - Office space $8,000 Store supplies expense $2,550 Advertising expense $9,300 ($102,150)Operating income $9,650
b) Nelson company
Income Statement
For the month ended January 31, 202x
Sales:
Total sales $115,900 Sales discounts ($2,100 )Sales returns and allowances ($2,000 ) $111,800Cost of goods sold ($40,280)
Gross profit $71,520
Selling expenses:
Depreciation expense - equipment $6,500Sales salaries expense $12,900 Rent expense - Selling space $8,000 Store supplies expense $2,550 Advertising expense $9,300 ($39,250)S&A expenses:
Office salaries expense $12,900 Insurance expense $1,720 Rent expense - Office space $8,000 ($22,620)Operating income $9,650
155 million people were working in the US in 2016. If 42% of all people working were baby boomers, how many were working in 2016? If 15% of the baby boomers retire within 10 years, how many jobs will this represent from 2016 employment?
Answer:
65,100,100 baby boomers were working: 6.3 %
Explanation:
In 2016, 155,000,000 people were working.
42 percent were baby boomers,
The actual number of baby boomers were
= 42/100 x 155,000,000
=0.42 x 155,000,000
=65,100,100 baby boomers were working
If 15 percent of baby boomers were to retire in 10 years
The number ow retirees will
=15% of 65,100,100
=15/100 x 65,100,100
=0.15 x 65,100,100
=9, 765,015
As a percentage of the number of people working in 2016
= 9, 765,015/155,000,000 x 100
=0.0630000 x 100
=6.3 %
The contract drawings prepared by the architect are generally not specific enough to facilitate accurate fabrication of the materials involved. Therefore, to produce the necessary materials for a project, subcontractors and suppliers must provide ________________________ to amplify/clarify the contract drawings.
Answer:
construction specifications
Explanation:
Construction contracts must always include construction specifications. These specifications refer to what materials, installations and specialized labor is required to perform correctly the building process.
Architects are paid for their blueprints, i.e. their designs. Sometimes an architect can recommend certain materials that fit his/her design, but the contractor is responsible for carrying on the actual construction.
The contractor has to specify which materials will be used and how the construction process will be carried out. E.g. it is not the same to build a house with luxurious materials like expensive floors and ceilings than a normal house.
Sandhill Company expects to have a cash balance of $61,550 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017.
1. Collections from customers: January $86,550, February $161,550.
2. Payments to suppliers: January $55,550, February $90,550.
3. Wages: January $31,490, February $41,490. Wages are paid in the month they are incurred.
4. Administrative expenses: January $22,490, February $25,490. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.
5. Selling expenses: January $16,490, February $21,490. These costs are exclusive of depreciation. They are paid as incurred.
6. Sales of short-term investments in January are expected to realize $13,490 in cash. Sandhill Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $35,550.
Required:
Prepare a cash budget for January and February.
Answer:
January February
Beginning Cash Balance 61,550 36,570
Add: Receipts
Collections from Customers 86,550 161,550
Sale of Marketable Securities 13,490 0
Total Receipts 100,040 161,550
Total Available Cash 161,590 198,120
Less: Disbursements
Payments to Suppliers 55,550 90,550
Wages 31,490 41,490
Admin Expenses 21,490 24,490
Selling Expenses 16,490 21,490
Total Disbursements 125,020 178,020
Cash Balance 36,570 20,100
Financing
Add: Borrowings 0 15,450
Less: Repayments 0 0
Ending Cash Balance 36,570 35,550
Admin Expenses are independent of Depreciation which is not a cash expense.
The company wants to maintain a minimum monthly cash balance of $35,550 so in February they will have to borrow;
= 35,550 - 20,100
= $15,450
Jake borrowed $18,000 from his father to purchase a camper. Jake paid back $25,000 to his father at the end of 6 years. What was the average annual compound rate of interest on Jake's loan from his father
Answer:
5.63%
Explanation:
The annual compound rate of interest on Jake's loan from his father is calculated as :
PV = $18,000
N = 6
P/yr = 1
Pmt = $ 0
FV = - $25,000
i = ?
Using a financial calculator to input the values as shown above, the annual compound rate of interest is 5.6277 % or 5.63%
Assume you are a business consultant. The owner of a company sends you an e-mail expressing concern that the company is not taking advantage of its discounts offered by vendors. The company currently uses the gross method of recording purchases. The owner is considering a review of all invoices and payments form the previous period. Due to the volume of purchased, however, the owner recognizes that this is time-consuming and costly. The owner seeks your advice about monitoring purchase discounts in the future.
Required:
Provide a response in memorandum form.
Answer:
i have no clue
Explanation: :)
For each of the following, is the business a price-taking producer?
The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.
MOTO HOTEL Trial Balance May 31, 2017
Debit Credit
Cash $2,403
Supplies 2,600
Prepaid Insurance 1,800
Land 14,903
Buildings 70,000
Equipment 16,800
Accounts Payable $4,603
Unearned Rent Revenue 3,300
Mortgage Payable 36,000
Common Stock 59,903
Rent Revenue 9,000
Salaries and Wages Expense 3,000
Utilities Expense 800
Advertising Expense 500
$112,806 $112,806
Other data:
1. Insurance expires at the rate of $450 per month.
2. A count of supplies shows $1,160 of unused supplies on May 31.
3. (a) Annual depreciation is $3,480 on the building. (b) Annual depreciation is $2,880 on equipment.
4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)
5. Unearned rent of $2,580 has been earned.
6. Salaries of $760 are accrued and unpaid at May 31.
Required:
Journalize the adjusting entries on May 31.
Answer:
General Journals
1.
Insurance Expense $450 (debit)
Prepaid Insurance $450 (credit)
Insurance for May expired
2.
Supplies Expenses $1,140 (debit)
Supplies $1,140 (credit)
Supplies used during May
3a.
Deprecation $290 (debit)
Accumulated Depreciation $290 (credit)
Depreciation for building for May
3b.
Deprecation $240 (debit)
Accumulated Depreciation $240 (credit)
Depreciation for equipment for May
4.
Interest Expense $3,000 (debit)
Mortgage Payable $3,000 (credit)
Interest expense on Mortgage for May
5.
Unearned Rent Revenue $2,580 (debit)
Rent Revenue $2,580 (credit)
Rent Revenue earned
6.
Salaries Expense $760 (debit)
Accounts Payable $760 (credit)
Salaries for May owing
Explanation:
Mortgage Interest = 1/12 × $36,000
= $3,000
See the correction/adjusting entries prepared above.
If annualized interest in the U.S. and France are 9% and 13%, respectively, and the spot value of the French franc is $0.1109, then at what 180-day forward rate will interest rate parity hold
Answer:
0.1130 FF/$
Explanation:
Spot value = 0.1109 FF/$
Interest rate in US for 180 days = 9%*180/365 = 0.044384
Interest rate in France for 180 days = 13%*180/365 = 0.06411
Forward rate = Spot value*(1+Interest rate in US)/(1+Interest rate in France)
Forward rate = 0.1109*(1+0.06411)/(1+0.044384)
Forward rate = 0.1109*(1.06411/1.044384)
Forward rate = 0.1109* 1.018888
Forward rate = 0.1130 FF/$
If a company sold $1,000 worth of goods in a period, the closing entry for the
revenue accounts would show a
A. $1,000 credit to Sales Expense
B. $1,000 debit to Income Summary
C. $1,000 debit to Sales Revenue
D. $1,000 credit to Sales Revenue
Answer:
Explanation:C. $1,000 debit to sales revenue
Answer:$1,000 debit to sales revenue
Explanation: