Answer:
$572,000
Explanation:
Cash flow from operating activities
Net income $464,000
Adjustment for Non-Cash items :
Depreciation $78,000
Adjustment for Changes in Working Capital items :
Increase in Accounts payable $45,000
Increase in Inventory ($36,000)
Decrease in Accounts receivable $12,000
Decrease in Accrued liabilities ($24,000)
Decrease in Prepaid insurance $33,000
Net cash flow provided by operating activities $572,000
thus,
net cash flow from operating activities using indirect method is $572,000.
Nieto Company’s budgeted sales and direct materials purchases are as follows.
Budgeted Sales Budgeted D.M. Purchases
January $250,600 $32,200
February 238,100 45,300
March 299,600 38,300
Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.
A) Prepare a schedule of expected collections from customers for March
B) Prepare a schedule of expected payments for direct materials for March.
Answer:
Nieto Company
A) Schedule of expected collections for March:
30% Cash Sales $89,880
Credit Sales $167,307
Total collections for March $257,187
B) Schedule of expected payments for direct materials for March:
40% month of purchase $15,320
60% ffg month $27,180
Total expected payments $42,500
Explanation:
a) Data and Calculations:
January February March Total
Budgeted sales $250,000 $238,100 $299,600
Cash collections:
30% Cash $75,000 $71,430 $89,880
70% Credit $175,000 $166,670 $209,720
Cash collections from credit sales:
Month of sale, 10% $17,500 $16,667 $20,972
Following month, 50% 87,500 83,335
Second month, 36% 63,000
Total collections for March (credit sales) $167,307
Budgeted D.M. Purchases $32,200 $45,300 $38,300
Cash payments:
40% purchase month $12,880 $18,120 $15,320
60% ffg month $19,320 $27,180
Total payments $12,880 $37,440 $42,500
You want to have $5 million in real dollars in an account when you retire in 20 years.
The nominal return on your investment is 10 percent and the inflation rate is 3 percent.
What is the real amount you must deposit each year to achieve your goal?
Answer:
The real amount that you must deposit each year to achieve your goal is:
= $54,662.78.
Explanation:
a) Data and Calculations:
Required amount in real dollars = $5 million
Nominal return on investment = 10%
Inflation rate = 3%
Real return on investment = 13% (10 + 3)
From an online financial calculator:
N (# of periods) 20
I/Y (Interest per year) 13
PV (Present Value) 0
FV (Future Value) 5000000
Results
PMT = $54,662.78
Sum of all periodic payments $1,093,255.61
Total Interest $3,906,744.3
If you were originally a lender, remain a lender even after a decline in interest rates. Will you get better or worse after the interest rate change? Analyze consumer behavior in the above situation.
Answer:
If the lender rate decline he will be worst of due to consumer buying behavior.
Explanation:
Lenders are creditors and not all creditors are leanders. During a decline in the interest rates goes down and borrowing gets cheaper. The leander will be worse after the interest rates decline. If the interest rate rises or changes the lender may get higher rates.Pontchartrain Company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,145. The company uses effective-interest amortization. Interest expense reported on the 2017 income statement will total
Answer:
$1,568,498
Explanation:
First calculate the Amont of discount
Discount on the bond = Face value - Proceeds from the bond = $20,000,000 - $19,604,145 = $395,855
Now prepare the bond amortization
The Bond Amortization schedule is attached with this answer, please find it.
Now calculate the interest expense for 2017
Interest Expense 2017 = $784,165.80 + $784,332.43
Interest Expense 2017 = $1,568,498.23
Interest Expense 2017 = $1,568,498
A 4-year project has an annual operating cash flow of $42,000. At the beginning of the project, $6,000 in net working capital was required, which will be recovered at the end of the project. The firm also spent $21,900 on equipment to start the project. This equipment will have a book value of $5,460 at the end of the project, but can be sold for $6,920. The tax rate is 21 percent. What is the Year 4 cash flow?
Answer:
Total cash flow $54,613
Explanation:
The computation of the year 4 cash flow is given below:
Selling price of equipment $6,920
Book value at year 4 end $5,460
Capital gain $1,460
Tax on capital gain at 21% $306.6
So, net cash flow from the sale of equipment
= $6,920 - $307
= $6,613
Now year 4 cash flow is
Annual operating cash flow $42,000
Release of working capital $6,000
Net cash flow form sale of equipment $6,613
Total cash flow $54,613
Ted, a used car dealer, entered into a written agreement to sell a car to Debra, a sixteen year old high school junior. The agreement provided that Ted would replace any defective parts for one year. Debra agreed to pay Ted $200 per month for three years (which she has done). The age of majority for the jurisdiction is eighteen. After six months, Debra's transmission fails but Ted refuses to replace it. If Debra (or a representative on her behalf) brings a lawsuit against Ted, it is more likely than not that the court will rule:_____.
A. Ted will prevail because Debra was a minor when the contract was formed.
B. The contract is illegal.
C. The contract is void.
D. Debra will prevail, as Ted is bound to the contract.
Answer:
D. Debra will prevail, as Ted is bound to the contract.
Explanation:
A minor can enter a contract that is not prohibited by law for minors. For example sale of alcohol or tobacco is prohibited.
When a minor enters a contract they can either honor it or void it before they come of age.
This is different for adults that cannot disaffirm a contract.
So in this scenario where the agreement provided that Ted would replace any defective parts for one year, failure to do so will see Debra prevailing in court. Since she did not void the contract
The neoclassical view holds that long-term expansion of potential GDP due to _______________________ will determine ____________________. Group of answer choices
Answer:
economic growth; the size of the economy.
Explanation:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. Also, Gross Domestic Products (GDP) is a measure of the production levels of any nation.
Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).
The new classical theory also known as the neoclassical economic theory is one that repudiates and tends to restructure the John M. Keynes theory of macroeconomics, popularly referred to as the Keynesian Macroeconomics theory.
The new classical theory argues that efficient demand and supply is the most important feature or key behind the level of output, pricing, and consumption of goods and services by the people at a specific period of time in a country. Also, the new classical theory assumes that the wages of the employees in a country is flexible in contrast to the Keynesian macroeconomic theory.
The neoclassical view posits that long-term expansion of potential Gross Domestic Products (GDP) due to economic growth will significantly determine the size of a country's economy.
However, the economy cannot sustain production above its potential Gross Domestic Products (GDP) in the long run.
A distinguishing characteristic of the neoclassical view from other economic theory such as the Keynesian Macroeconomics theory, is flexibility of wages and prices over time.
causes of wage rigidity
Answer:
According to the Efficiency-wage theories: High wages paid to the workers' make them more productive, therefore, the firms are reluctant or fail to decrease wages despite of an excess supply of labour.
importance of settlement
Answer:
The function of a settlement helps to identify the economic and social development of a place and can show its main activity. Most large settlements have more than one function though in the past one function was maybe the most important in defining the success and growth in importance of the settlement.
The function of a settlement helps to identify the economic and social development of a place and can show its main activity. Most large settlements have more than one function though in the past one function was maybe the most important in defining the success and growth in importance of the settlement.
Explanation:
The main functions of a settlement are:
Market town – where farmers will buy and sell their goods and materials
Mining town – where minerals and fuel might be extracted
Industrial town – where raw materials will be processed into manufactured products
Port – a place where goods can be imported and exported
Route centre – a place where several important roads/ transport links will meet
Service centre – a place that will provide for the main needs and services for people living in a particular area
Cultural/ Religious centre – a place that will welcome people from different places for learning or religious observance
Administrative centre – where government offices and departments will be located
Residential town – a place where people will live but will travel to work somewhere else
Tourist resort – where people visit to relax and enjoy themselves
The Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid for months of advertising. How much advertising expense should Law Firm record for the two months ending February 28 under the
a. cash basis
b. accrual basis?
Answer and Explanation:
The computation of the advertising expense that should be record for the two month under following basis is
a. For cash basis
It should be recorded at $2,000
b. For accrual basis
= $2,000 ×2 ÷5
= $800
In this way, it should be determined
And, the same should be relevant
How do systems serve different management groups in a business and how do systems that link the enterprise improve organizational performance
Answer:
In simple words, Enterprise apps are created to bring together a variety of activities and procedures. To facilitate coordination and decision-making, enterprise systems combine a company's major internal business operations into an unified software platform . Supply chains administration software assists a company in managing its relationships with vendors in order to improve product planning, procurement, production, and supply of commodities.
Which of the following is an example of a functional structure? Multiple Choice Fred owns a diner and has three employees. Borrowit Lending has a business division and a consumer division. Shelter Semiconductors has offices in Berlin, Tokyo, Chicago, and London. Leopard Industries has a plastics group, an electronics group, and a transportation group. At Mark’s Furniture, all the carpenters are in one group, and all the upholsterers are in another.
Answer: At Mark’s Furniture, all the carpenters are in one group, and all the upholsterers are in another.
Explanation:
Functional structures refer to the grouping of company departments based on what the labor involved do for the company i.e. their functional expertise.
Mark's company is therefore using a functional structure because it groups its workforce by their functional expertise with carpenters in one group and upholsters in another.
Most companies follow this strategy which is why companies have departments such as accounting, human resources, marketing and production.
Producer surplus directly measures a. the well-being of buyers and sellers. b. the well-being of society as a whole. c. the well-being of sellers. d. sellers' willingness to sell.
Answer:
c. the well-being of sellers.
Explanation:
A surplus is the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.
Producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.
On the other hand, consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
Hence, an export subsidy will increase producer surplus.
In conclusion, producer surplus directly measures the well-being of sellers.
1. Define equilibrium.
Answer:
In chemistry:
Chemical equilibrium is defined as the condition in the course of a reversible chemical reaction in which no net change in the amounts of reactants and products occurs
In physics:
Equilibrium is defined as the condition of a system when neither its state of motion nor its internal energy state tends to change with time.
A simple mechanical body is said to be in equilibrium if it experiences neither linear acceleration nor angular acceleration; unless it is disturbed by an outside force, it will continue in that condition indefinitely.
the condition of a system when neither its state of motion nor its internal energy state tends to change with time is called equilibrium.
Hope it is helpful to you
Swifty Corporation has 46,500 shares of $13 par value common stock outstanding. It declares a 15% stock dividend on December 1 when the market price per share is $18. The dividend shares are issued on December 31. Prepare the entries for the declaration and issuance of the stock dividend. (
Answer:
Common stock dividend distributable = Par * Number of shares * % dividend
= 13 * 46,500 * 15%
= $90,675
Stock Dividend = Number of shares * market price * % dividend
= 46,500 * 18 * 15%
= $125,550
Date Account Title Debit Credit
Dec, 1 Stock Dividend $125,550
Common Stock Dividend Distributable $90,675
Paid in Capital in excess of Par- $34,875
Common stock
Date Account Title Debit Credit
Dec, 31 Common Stock Dividend Distributable $90,675
Common Stock $90,675
Ice Cream Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 2,400 Materials costs $ 14,500 Conversion costs $ 6,600 Percent complete with respect to materials 75 % Percent complete with respect to conversion 20 % Units started into production during the month 11,100 Units completed and transferred to the next department during the month 10,000 Materials costs added during the month $ 173,600 Conversion costs added during the month $ 243,600 Ending work in process inventory: Units in ending work in process inventory 3,500 Percent complete with respect to materials 90 % Percent complete with respect to conversion 30 % The cost per equivalent unit for materials for the month in the first processing department is closest to:
Answer:
Ice Cream Corporation
The cost per equivalent unit for materials for the month in the first processing department is closest to:
= $14.30.
Explanation:
a) Data and Calculations:
Units Materials Conversion
Beginning work in process 2,400 $ 14,500 $ 6,600
Percentage of completion
Beginning work in process 75% 20%
Started into production 11,100
Units in production 13,500
Completed and transferred 10,000
Ending work in process 3,500 90% 30%
Costs added during the month $173,600 $243,600
Total costs of production
Beginning work in process $ 14,500 $ 6,600
Costs added during the month 173,600 243,600
Total costs of production $188,100 $250,200
Equivalent units of production:
Completed and transferred 10,000 10,000 (100%) 10,000 (100%)
Ending work in process 3,500 3,150 (90%) 1,050 (30%)
Equivalent units of production 13,150 11,050
Cost per equivalent unit:
Total costs of production $188,100 $250,200
Equivalent units of production 13,150 11,050
Cost per equivalent unit $14.30 $22.64
Henry has a $10,000 car insurance policy with a $400 per claim deductible. Henry is involved in an accident, and his car sustains $7,000 worth of damage. How
much will Henry's insurance company pay?
Answer:
The answer is $6,600
Explanation:
I know this because i got it right when i answered it
You just sold 900 shares of Alcove stock at a price of $34.08 a share. Last year you paid $39.20 a share to buy this stock. You received dividends totaling $1.04 per share. What is your total capital gain on this investment?a. $5,544 44b. -$3,672c. -$5,544d. -$4,608e. $4,608
Answer:
d. -$4,608
Explanation:
The computation of the total capital gain is shown below:
Total capital gains is
= (End value - Beginning value) × 900 shares
= ($34.08 - $39.20) × 900 shares
= -$4,608
Hence, the total capital gain on this investment is -$4,608
Therefore the option d is correct
And, the same is to be relevant
Materials cost per yard: standard, $1.90; actual, $2.04 Standard yards per unit: standard, 4.69 yards; actual, 5.03 yards Units of production: 9,400 Calculate the direct materials price variance. a.$1,316.00 unfavorable b.$6,619.48 unfavorable c.$6,619.48 favorable d.$6,172.04 favorable
Answer:
b.$6,619.48 unfavorable
Explanation:
Calculation to determine the direct materials price variance
First step is to calculate the Total number of actual quantity used
Total number of actual quantity used = 9400×5.03
Total number of actual quantity = 47,282
Now let determine the Material price variance
Using this formula
Material price variance = ( Standard price - Actual price ) × Actual quantity used
Let plug in the morning
Material price variance= ( $1.90 - $2.04 ) × 47,282
Material price variance=-0.14×47,282
Material price variance = -$6,619.48 unfavorable
Therefore the direct materials price variance is
-$6,619.48 unfavorable
For the month of September, Florida, Inc., incurs a direct materials cost of $12,000 for 7,500 gallons of strawberry lemonade produced in its Mixing Department. It also incurs conversion costs of $6,000 with 80% completed. If the conversion cost per equivalent unit was $1.15 per gallon in August, what is the difference in the conversion cost per equivalent unit between the two months
Answer:
Florida, Inc.
The difference in the conversion cost per equivalent unit between the two months is:
= $0.15.
Explanation:
a) Data and Calculations:
Direct materials cost = $12,000
Production units (gallons of strawberry lemonade) = 7,500
Conversion costs = $6,000
Degree of completion of conversion = 80%
Equivalent units of conversion = 6,000 (7,500 * 80%)
Therefore, the conversion cost per equivalent unit = $1.00 ($6,000/6,000)
The difference in the conversion cost per equivalent unit between the two months is $0.15 ($1.15 - $1.00)
Beer Corporation had net income of $216,000, and paid dividends to common stockholders of $43,000 in 2017. The weighted average number of shares outstanding in 2017 was 58,500 shares. Beer Corporation's common stock is selling for $79 per share on the New York Stock Exchange. Calculate Beer Corporation's price earnings ratio. Round answer to one decimal place.
Answer:
21 times
Explanation:
Calculation to determine Beer Corporation's price earnings ratio
First step is to get Calculate the Earning per share ( EPS)
EPS=$216,000 ÷ $58,500
EPS= $3.69
Now let calculate the price earnings ratio
Price earnings ratio= $79 ÷ $3.69
Price earnings ratio= 21 times
Therefore Beer Corporation's price earnings ratio is 21 times
The U.S. government could reduce its budget deficit by expanding the income assistance programs. raising the eligible retirement age to receive Social Security benefits. increasing discretionary spending. borrowing funds from abroad.
Answer:
raising the eligible retirement age to receive Social
Explanation:
We can agree that there is a budget deficit in an economy if the government expenditures in the economy are greater than its revenue. The remedy in the face of such an economic problem is either to raise taxes or to decrease the expenditures of the government.
In this question, the way that the US government can reduce the budget deficit is by raising the eligible retirement age of those who are to receive the social security benefits. When this age is increased, it means that less people would be receiving this benefit. Less people would meet the required age for the benefit. By so doing, the government is cutting its expenditures.
the rest of the options in the question would increase the deficit.
Which of the following is an important consideration in setting up the proper environment to complete tasks on time?
In general, setting choosing the appropriate atmosphere to execute assignments in time is critical.
Following are the knowing step in which we define how to develop these priorities:
If you want to ensure sure activities are finished on schedule, it is the most crucial factor.This ability to manage one's time is essential for all types of leaders, especially leaders, managers, and coaches. These corporate leaders must have a sound plan, set clear goals, and also be effective.For something like that to happen, people should define goals, focus on the work at hand, create an environment favorable to the activities which need to be done, and eliminate distractions to develop the necessary habits that lead to production.Learn more:
sociocultural environment: brainly.com/question/24244964
Management process with proper coordination & cooperation is important to set up proper environment to complete tasks on time
Task completion on time (effectively) & in best optimum way (efficiently) is inherent goal of process of management.
These proper steps of management should be followed for it :
Planning - Analysing future prospectus Organising - Designing layout Staffing - Choosing personnel Directing - Guiding, motivating, supervising personnel Controlling - Comparing performance with goal at various milestones.Coordination & cooperation imbibed in this process is likely ensure decided tasks completion, effectively & efficiently
Correll Company, which operates a mail-order clothing business, is physically located in State L. This year, the firm shipped $18 million of merchandise to customers in State R. State R imposes a 6 percent sales and use tax on the purchase and consumption of retail goods within the state.
Required:
a. Do State R residents who purchased Firm L merchandise owe use tax on their purchases?
b. If State R could legally require Firm L to collect a 6 percent tax on mail-order sales made to residents of the state, how much additional revenue would the state collect? Explain the reasoning behind your answer.
Answer:
Correll Company
a. Yes State R residents who purchased Firm L (out-of-state) merchandise owe use tax on their purchases.
b. State R would collect $1,080,000 additional revenue ($18 million * 6%) if Correll was required to collect the use tax at the point of sale and then remit the tax collected to State R.
Explanation:
a) Data and Calculations:
Cost of merchandise to customers in State R = $18 million
State R's sales and use tax on the purchase and consumption of retail goods within the state = 6%
Amount that Correll could collect for State R = $1,080,000 ($18 million * 6%)
b) Note that Correll (Firm L) collecting the State R use tax does not affect State R residents' legal liability to pay the use tax. Unfortunately, not many people actually remit their self-assessed use tax.
If a nail salon hires an additional worker, that worker can service 8 additional customers per day. The average nail service fee is $30. The most the salon would be willing to pay that groomer is
Answer:
Therefore, the salon will pay = $240
Explanation:
Below is the given values:
Service additional worker per day = 8 customers per day
Average fee = $30
The firm would like to pay the groomer up to the amount that is generated by them so the amount generated 30 x 8 = $240
Therefore, the salon will pay = $240
Other things the same , as the price level rises, the real value of money a. falls and the exchange rate rises. b. and the exchange rate fall. c. rises and the exchange rate falls. d. and the exchange rate rise.
Answer:
falls and the exchange rate fall.
Explanation:
Increase in general price level is referred to an inflation.
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
When price level rises, the real value of money decreases
For example, imagine that price of an apple is $5. If you have $100, you can by 20 apples. If price level increases by 100%, $100 would only buy 10 apples. thus, the real value of money decreases
Also exchange rate falls. exchange rate is the rate at which one currency is exchanged for another currency
If price level increases, domestic currency would become cheaper. As a result, exchange rate falls
MC Qu. 131 At Midland Company's break-even point... At Midland Company's break-even point of 9,000 units, fixed costs are $180,000 and variable costs are $540,000 in total. The unit sales price is:
Answer:
selling price per unit = $80
Explanation:
Giving the following information:
Company's break-even point of 9,000 units
Fixed costs are $180,000
Total variable costs= $540,000
First, we will calculate the unitary variable cost:
Unitary variable cost= 540,000 / 9,000
Unitary variable cost= $60
Now, the unitary selling price, using the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
9,000 = 180,000 / (selling price per unit - 60)
9,000selling price per unit - 540,000 = 180,000
9,000selling price per unit = 180,000 + 540,000
9,000selling price per unit = 720,000
selling price per unit = 720,000/9,000
selling price per unit = $80
Answer:
$80
Explanation:
The first step is to find the variable cost
= 540,000/9000
= 60
Therefore the unit sales price can be calculated as follows
= 180,000/90,000+60
= 20+60
= $80
Hence the unit sales price is $80
Al owned a family high-deductible health policy as part of his MSA for the entire year. What is his maximum permitted contribution to the MSA in 2020 if his deductible is $5,000?
The number of people employed in one country is 230 million, with a total number of unemployed people at 40 million. The total population for the country is 500 million. What is the unemployment rate? Group of answer choices
Answer:
Unemployment rate = 14.81 %
Explanation:
Unemployment is defined as the number of people that are willing and able to work in an economy but that are not able to get employment.
If is used as a measure of the level of economic growth of a country.
Mathematically:
Unemployment rate = (Unemployed) ÷ (Economically active people) *100
Economically active people are employed plus unemployed.
That is 230 million + 40 million = 270 million
Therefore
Unemployment rate = (40/270) * 100
Unemployment rate = 14.81 %
An abundance of utility-focused blogs exist, posting negative information about utilities in general and even about ABC Utility. Which of the following is NOT a wise response to control the negative blogs?
a. Repost the negative blogs that appear in other places, and argue against the content.
b. Create a company sponsored blog and post blogs with useful information.
c. Monitor the blogs to gather information about public perception.
d. Ask the CEO to frequently write a blog post regarding the values and vision of the organization.
Answer:
a
Explanation:
Blogs are a good medium that can be used by firms to disseminate information about their goods and services.
Blogs are also a good way to gather information about the perception of consumers to a company's goods and services
A company can make use of blogs to disseminate positive information about their goods and services by creating a company sponsored blog and post blogs with useful information. It would be and advantage if key personals in the firm frequently write a blog post about the firm e.g. the values and vision of the organization.
