Answer:
D. If the mean amount of money that students from the university spend on a first date is $100, the probability is 0.026 that a randomly selected group of 32 students from the university would spend a mean of $92.23 or less on their most recent first dates
Explanation:
Given that:
mean amount of money spent by the students is= $100
Surveyed of random selection of 32 students is obtained from the university
sample result a mean value of $92.23
The p-value = 0.026
The p-value is the probability value that helps to determinethe observed or more extreme results when the null hypothesis H₀ of a study question is true.
From the question; the correct interpretation of the p-value is :
If the mean amount of money that students from the university spend on a first date is $100, the probability is 0.026 that a randomly selected group of 32 students from the university would spend a mean of $92.23 or less on their most recent first dates
Answer:
The correct answer is (D)
Explanation:
Solution
For the value p, the correct interpretation is: Under null hypothesis the probability of obtaining the sample observations
From the question given,the right answer is:If the mean amount of money that students from the university spend on a first date is $100, the probability is 0.026 that a randomly selected group of 32 students from the university would spend a mean of $92.23 or less on their most recent first dates
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead (a) 486,144 (b) 405,120 Bal. 81,024 Work in Process Bal. 10,880 (c) 754,000 298,500 90,500 (b) 405,120 Bal. 51,000 Finished Goods Bal. 39,000 (d) 662,000 (c) 754,000 Bal. 131,000 Cost of Goods Sold (d) 662,000 The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: Work in Process, ending $ 24,480 Finished Goods, ending 62,880 Cost of Goods Sold 317,760 Overhead applied $ 405,120 For example, of the $51,000 ending balance in work in process, $24,480 was overhead that had been applied during the year. Required: 1. Identify reasons for entries (a) through (d). 2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
Answer and Explanation:
As per the data given in the question,
1.
a) Cost of goods manufactured.
b) Cost of goods sold.
c) Overhead cost applied to work in process
d) Actual manufacturing overhead cost.
2. Journal Entry
Manufacturing overhead A/c Dr. 81,024
To cost of goods sold A/c. 81,024
3.
Work in process ending $24,480 =6.04%
Finished goods ending $62,880 =15.52%
Cost of goods sold $317,760 =78.44%
Total cost $405.120 =100%
To calculate overhead allocation :
Work in process ending = ($81,024× 6.04%) =$4,894
Finished goods ending = ($81,024 × 15.52%) =$12,575
Cost of goods sold = ($81,024 × 78.44%) = $63,355
Total cost = $81,024
Journal Entry
Manufacturing overhead A/c Dr. 81,024
To work in process A/c. $4,893
To finished goods A/c. $12,575
To cost of goods sold A/c. $63,555
Todd is working on resource scheduling in preparation for the start of a project. There is a potential problem in the works, however, as the new collective bargaining agreement with the company's union has not been concluded. Todd decides to continue working on the resource schedule in anticipation of a satisfactory settlement. Todd's approach would be an example of which method of dealing with risk
Answer:
Accept it.(Risk).
Explanation:
This is commonly known also as risk retention which is been encountered in business or investments. Many businesses use risk management techniques to identify, assess and prioritize risks for the purpose of minimizing, monitoring, and controlling said risks.
Most businesses and risk management personnel will find that they have greater and more numerous risks than they can manage, mitigate, or avoid given the resources they are allocated. As such, businesses must find a balance between the potential costs of an issue resulting from a known risk and the expense involved in avoiding or otherwise dealing with it. Types of risks include uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural causes and disasters, and overly aggressive competition.
Which of the following statements generates the greatest amount of disagreement among economists? a. Increases in the money supply shift aggregate demand to the right. b. In the long run, increases in the money supply increase prices, but not output. c. Recessions are associated with decreases in consumption, investment, and employment. d. Government should use fiscal policy to try to stabilize the economy.
Answer:
d. Government should use fiscal policy to try to stabilize the economy.
Explanation:
Suggesting that the government should use fiscal policy to try to stabilize the economy generates the greatest amount of disagreement among economists because the process of implementing fiscal policy usually experiences lag as it is being slowed down by the political system (bureaucracy) of checks and balances.
Fiscal policy is the use of government expenditures, revenues and tax policies to influence macroeconomic conditions such as employment, inflation and Aggregate Demand (ADl in a specific country.
The benefits of fiscal policy is that investments, savings and growth is usually influenced in the long-run while it basically influences aggregate demand for goods and services in the short-run.
The following information will be used for 2 questions on this exam: Charlotte Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: Time spent between receipt of order and start of production 3.7 days Time spent ensuring quality levels 0.2 days Time spent working on the product 1.3 days Time spent transporting the product between work stations 0.8 days Time spent waiting to be worked on in the factory 6.9 days What is the throughput time?
Answer:
6.00 days
Explanation:
data provided
Inspection time = 3.7 days
Process time = 0.2 days
Move time = 1.3 days
Queue time = 0.8 days
The calculation of throughput time is given below:-
Throughput time = Inspection time + Process time + Move time + Queue time
= 3.7 days + 0.2 days + 1.3 days + 0.8 days
= 6.00 days
Here, we added the inspection time, process time , move time and queue time to reach at throughput time and we ignore the time spent waiting to be worked on in the factory as it is not relevant.
Assume that Bethany acquires a competitor's assets on March 31st. The purchase price was $150,000. Of that amount, $125,000 is allocated to tangible assets and $25,000 is allocated to goodwill (a §197 intangible asset). What is Bethany's amortization deduction for the current year? (Round final answer to the nearest whole number.)
Answer:
$1,389
Explanation:
Tangible assets are depreciated, not amortized. Only the $25,000 goodwill will be amortized.
A §197 intangible asset can be amortized over a 15 year period that starts on the month that the intangible asset was acquired. In this case, the amortization expense will include March, so we need to calculate amortization for 10/12 of a year.
The amortization per year = $25,000 / 15 years = $1,667
amortization for year one = amortization per year x number of months = $1,667 x 10/12 = $1,389
Hawk-Dove (or Chicken) (t = tough, c = concede)
Two (young) players are engaged in a conflict situation. For instance, they may be racing their cars towards
each other on Main Street, while being egged on by their many friends. If player 1 hangs tough and stays in
the center of the road while the other player concedeschickens outby moving out of the way, then all glory is
his and the other player eats humble pie. If they both hang tough they end up with broken bones, while if
they both concede they have their bodiesbut not their prideintact.
Player 1 \ Player 2 t c
t -1,-1 10,0
c 0, 10 5, 5
The matrix form can be used to compactly represent the strategic form when there are two players even if
each player has more than two strategies to choose from.
Answer:
Sorry , didn't mean to tap this
Explanation:
Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co. a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.
Answer and Explanation:
The preparation of the differential analysis is presented below:
Particulars Order rejected (Alternative 1) order accepted (Alternative 2) Differential Effect on Income (Alternative 2)
Revenues $0 $576,000 $576,000
($18,000 × $32)
Costs
Variable Manufacturing Costs $0 $522,000 -$522,000
($18,000 × $29)
Income (Loss) $0 $54,000 $54,000
We simply deduct the variable manufacturing cost from the revenues so that the income or loss could come
On January 1, Year 1, Zero Company obtained a $52,000, 4-year, 6.5% installment note from Regional Bank. The note requires annual payments consisting of principal and interest of $15,179, beginning on December 31 of the current year. Of the first payment due on December 31 of Year 1, how much of the $15,179 payment will go toward paying down the principal balance of the note payable?
Answer:
$ 11,799 is the principal balance of the note payable.
Explanation:
The Interest expense for the installment note on the year of the December 31, year can be determined by the following equation that are mention below
[tex]= 52,000 * 6.5\ percent[/tex]
[tex]52,000 * \frac{6.5}{100}[/tex]
[tex]= $\ 3,380[/tex]
Now the Principal balance of the component in $15,179 payment of the December 31, year 1 can be determined by the
[tex]principal\ and \ interest\ of \ note\ annual\ payments - Interest\ expense \ for\ the\ installment\ note[/tex]
[tex]= 15,179 -3,380[/tex]
=$ 11,799
Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 units of cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 Direct labor 25 Selling and administrative expenses 140,000 Factory overhead 40 Selling and administrative expenses 25 Total variable cost per unit $240 Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000.
a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. Total variable cost $ Variable cost amount per unit $
b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places.
c. Determine the selling price of cellular phones. If required, round to the nearest dollar.
Answer:
(a). Total variable Cost = $2,890,000
Total variable Cost Per Unit = $289
(b). Variable Cost Markup Percentage = 12.46%
(c). Selling Price Per Unit = $325
Explanation:
According to the scenario, computation of the given data are as follow:-
a). Total Fixed Cost = Selling and Administrative Expenses + Factory Overhead
= $140,000 + $350,000 = $490,000
Fixed Cost Per Unit = Total Fixed Cost ÷ Cost of Produced and Selling Units
= $490,000 ÷ 10,000 = $49
Total variable Cost Per Unit = Fixed Cost Per Unit + Variable Cost Per Unit
= $49 + $240 = $289
Total variable Cost = Cost of Produced and Selling Units × Total Cost Per Unit
= 10,000 × $289 = $2,890,000
b). Desired Profit = Invested Assets × 30%
= $1,200,000 × 30÷100 = $360,000
Variable Cost Markup Percentage = Desired Profit ÷ Total Cost
=$360,000 ÷ $2,890,000 = 0.1246 = 12.46%
c). Selling Price Per Unit = (1 + Variable Cost Markup Percentage) × Total Cost Per Unit
= (1 + 12.46%) × $289
= 1.1246 × $289
= $325
he principle that suggests that the distribution of income should be based on the contribution made by individuals to society's total output is known as A. the functional distribution of income. B. the relative poverty standard. C. the productivity standard. D. the egalitarian principle. The productivity standard fails to yield an equal distribution of income because A. individuals have different abilities and skills. B. it is difficult to measure productivity accurately. C. richer countries have higher productivity than poorer countries. D. diminishing marginal productivity holds.
Answer:
The principle that suggests that the distribution of income should be based on the contribution made by individuals to society's total output is known as:
C. the productivity standard.The productivity standard fails to yield an equal distribution of income because:
A. individuals have different abilities and skills.Explanation:
Generally speaking, productivity refers to how many units of output we can produce by using X amount of units of inputs. The higher the output, the more productive we are.
The same principle is used by the productivity standard to allocate resources in a society. This is a basic doctrine of capitalism that believes that more work and more productivity should equal more income. That is why capitalistic countries tend to have unequal income distribution.
Financial statement data for the years ended December 31 for Parker Corporation are as follows: Current Year Prior Year Sales $2,595,600 $2,409,498 Fixed assets (net): Beginning of year $901,070 $820,000 End of year 829,330 901,070 a. Determine the fixed asset turnover ratio for the current and prior years. Round your answers to one decimal place. Current Year: Prior Year: b. Does the change in fixed asset turnover ratio from the prior year to the current year indicate a favorable or unfavorable trend
Answer:
we need to calculate the Average Fixed assets for both the periods.
Average Fixed Assets = (Fixed Assets at the beginning + Fixed assets at the ending period)/2
Current Year = ($901070+829330)/2
= 1730400/2
=$865200
Prior Year = $820000+901070
= 1721070/2
= $860535
Fixed Assets Turnover = Sales/Average Fixed Assets
Current year = $2595600/865200
= 3
Prior Year = $2409498/860535
= 2.8
b) There is an increase in the Fixed asset turnover which indicates an increase in efficiency of using fixed assets to generate sales.
Answer:
a. Current year 1.5 Prior year 1.4
b. Yes it indicates a favorable trend as it shows that sales of $1.50 was generated for every $1 invested in current year as against $1.40 for every $1 invested in prior year.
Explanation:
Fixed Asset turnover is the ratio of revenue to average Fixed assets of a company.
It is a financial indicator that shows how much revenue a company generates in an accounting period for each $ 1 invested in assets (fixed asset in this case).
Average assets in the
current year
= $901,070 + $829,330
= $1,730,400
Prior year
= $820,000 + $901,070
= $1,721,070
As such fixed assets turnover for
current year
= $2,595,600/$1,730,400
= 1.5
prior year
= $2,409,498/$1,721,070
= 1.4
Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows:
Atlantic Wave Pacific Pounder
Sales price $280 $130
Variable cost of goods sold per unit 220 97
Manufacturing margin per unit $60 $33
Variable selling expense per unit 32 18
Contribution margin per unit $28 $15
The sales unit volume for the sales territories and products for the period is as follows:
East Coast West Coast
Atlantic Wave 30,000 21,000
Pacific Pounder 0 21,000
Required:
Prepare a contribution margin by sales territory report. Calculate the contribution margin ratio for each territory as a whole percent
Answer:
Contribution margin ratio:
For East Coast = 10%
For West Coast = 8.05%
Explanation:
As per the data given in the question,
Contribution margin by sales territory report :
C C S Inc.
Contribution margin by Territory
Particulars East Coast West Coast
Sales (a) $8,400,000 $8,610,000
(30,000×$280)+(0×$130)
(21,000×$280)+(21,000×$130)
Less: variable cost of goods sold(b) $6,600,000 $6,657,000
(30,000×$220)+(0×$97)
(21,000×$220)+(21,000×$97)
Manufacturing margin (c=a-b) $1,800,000 $1,953,000
Less: Variable selling expense (d) $960,000 $1,260,000
(30,000×$32)+(0×$28)
(21,000×$32)+(21,000×$28)
Contribution margin (e=c-d) $840,000 $693,000
For East Coast:
Contribution margin ratio = (Contribution margin ÷ Sales revenue)×100
=($840,000÷ $8,400,000)×100
= 10%
For west coast:
Contribution margin ratio = (Contribution margin ÷ Sales revenue)×100
=($693,000 ÷ $8,610,000)×100
= 8.05%
Which one of the following statements regarding disclosure is true?
1. The seller and licensees need not disclose to a prospective buyer the manner or occurrence of an occupant's death in the home if it occurred within the past three years.
2. HIV/AIDS cannot be disclosed even when asked; by law HIV/AIDS are not material facts that require disclosure.
3. If an occupant died of AIDS or an AIDS-related syndrome within the past three years, that fact must be disclosed to a prospective buyer.
4. If asked by a prospective buyer if an occupant died of AIDS or an AIDS-related syndrome within the last three years, the seller or licensee must reply truthfully if known.
Answer:
4
Explanation:
The death on property must be disclosed to buyers by stateagents or owners if the death has occurred within last three years but the manner of death is not requried to be disclosed unless asked by the buyer.
Foreman Mining purchased land containing a copper deposit for $2,640,000 on January 7, 2021. The company expects to mine 770,000 tons of copper over the next 10 years, and the land is expected to have a residual value of $1,408,000. The company has also purchased mining equipment for $570,000 that will be used only at this site over the 10 years with an estimated residual value of $54,100. By the end of the first year, the company has mined and sold 61,000 tons of copper. What is the cost attributed to copper inventory for 2021, assuming the company uses the units-of-production method?
Answer:
$138,470
Explanation:
cost of mine = $2,640,000
residual value of the land = $1,408,000
cost of equipment = $570,000
residual value = $54,100
it should contain 770,000 tons of copper
units of production depreciation method:
depreciation of mine = ($2,640,000 - $1,408,000) / 770,000 tons of copper = $1.60 per ton of copperdepreciation of equipment = ($570,000 - $54,100) / 770,000 tons of copper = $0.67 per ton of coppertotal depreciation per ton of copper = $1.60 + $0.67 = $2.27since 61,000 tons were extracted, then the depreciation expense = 61,000 x $2.27 = $138,470
The following present value factors are provided for use in this problem. Periods Present Value of $1 at 8% Present Value of an Annuity of $1 at 8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121 Xavier Co. wants to purchase a machine for $36,300 with a four year life and a $1,200 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $11,300 in each of the four years. What is the machine's net present value
Answer:
$2007.6
Explanation:
According to the scenario, computation of the given data are as follow:-
4th Year Cash Flow = Salvage Value + Expected End Year Net Cash Flow
= $1,200 + $11,300
= $12,500
Year Cash flow ($) PVF at 8% Present value ($)
0 36,300 1.000 -36,300
1 11,300 0.9259 10462.67
2 11,300 0.8573 9687.49
3 11,300 0.7938 8969.94
4 12,500 0.7350 9187.5
Net present value 2007.6
According to the analysis, net present value of machine is $2007.6
Conner runs a rafting company on a local river. He runs two kinds of tripslong dash a wild whitewater experience and a more mellow wildlife tour. If he spends the day only doing whitewater trips, he can do 2 trips per day; if he spends the day only doing wildlife trips, he can do 6 trips. If he does some of each, however, he can do more total trips: 1 whitewater trips and 5 wildlife trips. Suppose that Conner's time is valued at $15 an hour. What can you say about his economies of scope? That is, what is the sign of his measure of economies of scope, SC?
Answer:
The economies of scope will be "0.6". The further explanation is given below.
Explanation:
Conner's estimated time seems to be $17 an hour.
And a full day's worth becomes
⇒ $17 × 24 = $408
The estimated value of every other white-water journey,
= [tex]\frac{408}{2}[/tex]
= $[tex]204[/tex], perhaps if two white-water trips could be made per day.
The net value or amount of each wildlife tour
= [tex]\frac{408}{4}[/tex]
= $[tex]102[/tex], because if four wildlife visits could be made through one day.
Presently, when he does several of them, he could do more visits, that would be to say, one white-water trip as well as three wildlife.
Therefore the total value of one trip in white-water as well as three trips in wildlife will be:
= [tex]204\times 1 + 102\times 3[/tex]
= [tex]204+306[/tex]
= $[tex]510[/tex]
Now,
The economies of scope,
= [tex]\frac{(408+408-510)}{510}[/tex]
= [tex]\frac{306}{510}[/tex]
= [tex]0.6[/tex]
The price of just doing individuals around each other is therefore,
= [tex](0.6\times 100)[/tex]
= 60% lower than that of the expense of doing all the multiple trips.
A company used straight-line depreciation for an item of equipment that cost $15,350, had a salvage value of $3,200 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,535 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life: Multiple Choice $2,880. $5,672. $1,215. $2,580. $3,200.
Answer:
The correct answer is $2,580.
Explanation:
Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($15,350 - $3,200) / 6 years = $2,025 yearly depreciation expense.
Accumulated depreciation at Year 3 = $2,025 x 3 = $6,075
Net book value (NBV) becomes $15,350 - $6,075 = $9,275
New depreciation is ($9,275 - $1,535) / 3 years = $2,580 yearly depreciation expenses
g Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $20,000,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. If an amount box does not require an entry, leave it blank. c. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000? The market rate of interest is the contract rate of interest.
Answer:
Explanation:
a
Cash 20811010
Bonds payable 20000000
Premium on Bonds payable 811010
b
Interest expense 818899
Premium on Bonds payable 81101 =811010/5*6/12
Cash 900000 =20000000*9%*6/12
c
The market rate of interest will be lower than the contract rate of interest.
When Starbucks sells "Starbucks" T-shirts in its coffee shops or when the Chicago Cubs peddle cubs branded merchandise at Wrigley Field, why are their marketers so happy?
Answer:
Because they have produced beyond their normal sale products such as coffee for Starbucks in other words they have found a other way to make more money.
Explanation:
pls mark brainliest
Neptune Corporation owns 70 percent of Pluto Company's stock. On July 1, 20X4, Neptune sold a piece of equipment to Pluto for $56,350. Neptune had purchased this equipment on January 1, 20X1, for $63,000. The equipment's original 15-year estimated total economic life remains unchanged. Both companies use straight-line depreciation. The equipment's residual value is considered negligible.
79.
Required information
Based on the information provided, in the preparation of the 20X4 consolidated financial statements, equipment will be ______ in the consolidation entries.
debited for $6,650
debited for $56,350
debited for $63,000
credited for $63,000
Answer:
credited for $63,000
Explanation:
According to the scenario been described in the question, the correct answer is credited for $63,000, this is so because from the information been given, when making the preparation of the consolidated financial statements, the equipment that will be credited for $63,000 is in the consolidation entries. Since the value of the book equipment is $63,000 so that will be credited.
Your bagel shop uses both capital and labor in the production of bagels. In this production process capital and labor are substitutes. If you install a new oven and the marginal product of capital increases, you will:
a. reduce the number of workers you employ
b. increase the number of workers you employ
c. reduce the amount of capital you are using not make any changes since you are already maximizing profit
Answer:
The answer is option A) reduce the number of workers you employ
Explanation:
Installing a new oven is capital intensive. So, for a business person to incur an additional capital cost to aid the efficiency of production, something has to give.
In this case, where capital and labor are substitutes, installing a new oven will drastically reduce the workload thereby necessitating a reduction in the number of workers.
By implication, the cost of paying wages which is a recurrent expenditure will reduce. In the long run and if the oven is maintained, it will e a very cost effective option.
Installing a new oven also suggests a marginal increment in capital.
The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,800 direct labor-hours will be required in September. The variable overhead rate is $7.00 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $43,120 per month, which includes depreciation of $3,640. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Answer:
$59,080
Explanation:
The calculation of September cash disbursements is shown below:-
September cash disbursement = Company's budgeted fixed manufacturing overhead - Depreciation + Variable manufacturing overhead
= $43,120 - $3,640 + $7.00 × 2,800
= $43,120 - $3,640 + $19,600
= $62,720 - $3,640
= $59,080
Therefore for computing the September cash disbursement we simply applied the above formula.
Thunder Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $ 28 $ 31 Accounts receivable 60 65 Inventory 41 42 Property, plant, and equipment 454 380 Less accumulated depreciation 206 172 Total assets $ 377 $ 346 Liabilities and stockholders' equity: Accounts payable $ 43 $ 45 Bonds payable 190 260 Common stock 41 40 Retained earnings 103 1 Total liabilities and stockholders' equity $ 377 $ 346 Income Statement Sales $ 874 Cost of goods sold 533 Gross margin 341 Selling and administrative expense 161 Net operating income 180 Income taxes 54 Net income $ 126 The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $24. Required: Prepare a statement of cash flows in good form using the indirect method.
Answer and Explanation:
The preparation of the cash flow statement is presented below:
Thunder Corporation's
Cash flow statement
Cash flow from operating activities
Net operating income $180
Adjustment made
Add: Depreciation expenses $34 ($206 - $172)
Add: Decrease in account receivable $5 ($60 - $65)
Add: Decrease in inventory $1 ($41 - $42)
Less: Decrease in account payable $2 ($43 - $45)
Net cash provided by operating activities $164
Cash flow from investing activities
Purchase of Property, plant, and equipment -$74 ($454 - $380)
Net cash used by investing activities -$74
Cash flow from financing activities
Repayment of bond payable -$70 ($190 - $260)
Issuance of the common stock $1 ($41 - $40)
Dividend paid -$24
Net cash used by financing activities -$93
Decrease in cash -$3
Add: Beginning cash balance $31
Ending cash balance $28
The items which displayed in a positive sign indicates the cash inflow and the items which displayed in a negative sign indicates the cash outflow
Harry and Meghan have considered starting their own business but are concerned about the possibility of losing even their personal assets if the business fails. One way for BOTH Harry and Meghan to avoid this liability risk would be to :
A.
divorce as soon as possible and establish two sole proprietorships
B.
Organize a limited partnership with Harry as the general partner
C.
set up offshore accounts
D.
form a corporation
Answer:
The correct option is D,form a corporation
Explanation:
The rationale for my choice of answer is that limited liability applies to a corporation which is found in other types of businesses.
Limited liability is a concept which implies that the liability of shareholders in a limited liability company is limited to the amount contributed to the business by a way of shares held in the company.
When a company runs into debt,the shareholders would not be required to make up such debts from their private pockets,hence Harry and Meghan personal effects are secure.
The way for Harry and Meghan to avoid liability risk is to form a corporation
Typically, a limited liability applies to a corporation which means that the owner liability is limited to the amount he owns in the business.
Limited liability implies that liability of shareholders is limited to the amount contributed to the business by a way of shares held in the company.
So, when company runs into debt, the shareholders would not be required to make up such debts from their private pockets,therefore, the investment of Harry and Meghan are secure.
Hence, the only way for Harry and Meghan to avoid liability risk is to form a corporation
Therefore, the Option D is correct.
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On January 1, 2017, Culver Company issued 10-year, $2,060,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Culver common stock. Culverâs net income in 2017 was $291,000, and its tax rate was 40%. The company had 108,000 shares of common stock outstanding throughout 2017. None of the bonds were converted in 2017.Required:(a) Compute diluted earnings per share for 2017. (Round answer to 2 decimal places, e.g. $2.55.)(b) Compute diluted earnings per share for 2017, assuming the same facts as above, except that $1,080,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Culver common stock.
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow: JulyAugustSeptemberBudgeted sales$64,000 $80,000 $48,000 Budgeted cash payments for Direct materials 16,160 13,440 13,760 Direct labor 4,040 3,360 3,440 Factory overhead 20,200 16,800 17,200 Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $45,000 in accounts receivable; and a $5,000 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,000 per month), and rent ($6,500 per month).rev: 03_17_2020_QC_CS-2046792. Prepare a cash budget for each of the months of July, August, and September.
The Preparation of cash budget for each of the months of July, August, and September is shown below:
Preparation of the cash budget:Cash budget
For the month of July, August and September
July August September
Beginning cash balance $15,000 $15,000 $25,505
Cash receipts from
customer (Working note) $57,800 $67,200 $73,600
Total cash available $72,800 $82,200 $99,105
Less:
Cash disbursements
Direct Materials $16,160 $13,440 $13,760
Sales commission $6,400 $8,000 $4,800
(10% of sales)
Office salaries $4,000 $4,000 $4,000
Rent $6,500 $6,500 $6,500
Direct Labor $4,040 $3,360 $3,440
Overhead Cost $20,200 $16,800 $17,200
Interest on bank loan
For July (5,000 × 1%) $50
For August $46
($5,000 - $4,550) × 1%))
For September $0
Preliminary Cash
balance $15,450 $30,055 $49,405
Repayment of loan to
Bank $450 $4,550
($5,000 - $450)
Ending cash balance $15,000 $25,505 $49,405
Working Note
The ending balance of the particular month should be treated as a opening balance of next month
August ending balance will be forwarded in Sept as a opening balance.
Working Note
July August September
Sales $64,000 $80,000 $48,000
Less:
Ending accounts
receivable
(80% of sales) $51,200 $64,000 $38,400
Cash sales $12,800 $16,000 $9,600
Last month cash
collection $45,000 $51,200 $64,000
Cash receipts from
customer $57,800 $67,200 $73,600
Therefore we added the cash receipts as it increase the cash balance and deduct all cash payment as it decrease the cash balance
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Tyrell Co. entered into the following transactions involving short-term liabilities in 2012 and 2013:
2012
Apr. 20 Purchased $38,000 of merchandise on credit from Locust, terms are 1/10, n/30. Tyrell uses the perpetual inventory system.
May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 9% annual interest along with paying $3,000 in cash.
July 8 Borrowed $63,000 cash from National Bank by signing a 120-day, 10% interest-bearing note with a face value of $63,000.
? Paid the amount due on the note to Locust at the maturity date.
? Paid the amount due on the note to National Bank at the maturity date.
Nov. 28 Borrowed $27,000 cash from Fargo Bank by signing a 60-day, 6% interest-bearing note with a face value of $27,000.
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
2013
? Paid the amount due on the note to Fargo Bank at the maturity date
Required:
Prepare the journal entries for these transactions.
ank by signing a 60-day, 6% interest-bearing note with a face value of $27,000.
Dec. 31 Recorded an adjuO
Which one of the following statements is correct concerning the mutual fund cash ratio (MFCR)? A. When mutual funds have a lot of cash it is a bearish signal because managers are not buying stocks. Your answer is not correct.B. A high MFCR is like high short interest in that it indicates pent up demand. This is the correct answer.C. Low mutual fund cash is bullish because it means managers have been buying stocks. D. High mutual fund cash indicates that fund managers might be forced to sell securities should investors wish to withdraw funds, a bearish signal.
Answer:
Following is the correct statement "When mutual funds have a lot of cash it is a bearish signal because managers are not buying stocks"
Explanation:
When the common assets have a large proportion of cash, it is the indications that stock managers are the market bearish in common and hold back on purchasing.
Therefore, the correct statement in he given scenario is A and other statement B, C and D are incorrect
A firm that has an ROE of 12% is considering cutting its dividend payout. The stockholders of the firm desire a dividend yield of 4% and a capital gain yield of 9%. Given this information, which of the following statements is (are) correct? I. All else equal, the firm's growth rate will accelerate after the payout change. II. All else equal, the firm's stock price will go up after the payout change. III. All else equal, the firm's P/E ratio will increase after the payout change. Multiple Choice I only
Answer:
I only is correct. That is, all else equal, the firm's growth rate will accelerate after the payout change.
Explanation:
Holding every other condition constant, the cutting of the company's dividend payout will lead to a permanent fall in the dividend per share and this will cause a decrease in price.
However, the cutting the company's dividend payout will increased the retention rate that will increase the growth rate of the company.
Therefore, all else equal, the firm's growth rate will accelerate after the payout change.
Employer-sponsored employee assistance programs (EAPs) are created to help workers overcome hurdles in their personal lives. Which employee is the most likely to receive help under a typical EAP? A. John Jones, who needs assistance to overcome a chemical dependency problem B. Steve Brown, who needs legal advice for his brother’s bankruptcy proceeding C. Cindy Savage, who needs a list of shop mall near the office D. Kate Johnson, who needs help choosing an appropriate M.B.A. program
Answer:
The correct answer to the following question will be Option A (John Jones, who wants help addressing a drug dependency crisis).
Explanation:
EAPs provide services and support for the struggle of employees or staff and which may be suitable for a certain company. This is a special opportunity for the employee working in such an intervention group.These are designed to help employees tackle challenges in every personal affair that need support addressing an issue of chemical dependence.The other solutions are not following the specified scenario. So choice A is the right answer.
