Answer:
Selling price = $301.3
Explanation:
The selling price would be determined by adding the total unit cost to the mark- up.
Mark up is the proportion of cost that is to be earned as profit.
Selling price = Total unit cost + Profit
Profit = 25% × unit cost
Selling price = Unit cost + Mark-up
Selling price = Unit cost + (15%× unit cost)
Total unit cost =Variable cost + unit fixed cost
Total fixed cost = 645,000 + 111,000 = 756,000
Unit fixed cost = $756,000 /10,500 =×72
Total unit cost = 105 + 35 + 50 + 72 = 262
Selling price = 262 + ( 15% + 262) = 301.3
Selling price = $301.3
Inventory at the end of April, 2008: 200 unitsExpected demand during April, 2008: 50 unitsProduction expected during April, 2008: 100 unitsWhat was the inventory at the end of March 2008?
Answer:
beginning inventory= 150 units
Explanation:
Giving the following information:
Endiing inventory= 200 units
Sales= 50 units
Production= 100
To calculate the beginning inventory, we need to use the following formula:
Production= sales + ending inventory - beginning inventory
100= 50 + 200 - beginning inventory
beginning inventory= 250 - 100
beginning inventory= 150 units
An investment adviser has a soft dollar arrangement with DEF Brokerage Company. An investment adviser representative brings a big new account to the RIA and the account owner tells the IAR to direct 50% of his trades to XYZ Brokerage Company. If execution is not an issue, then the IAR should:
Answer:
The remaining part of the question:
Which statement is TRUE?
A. Because the payment received by the IAR is small, there is no requirement to notify the client of the payment arrangement with the executing broker
B. Because the client has an investment objective of aggressive growth, requiring an active trading strategy, there is no requirement to notify the client of the payment arrangement with the executing broker
C. The IAR must notify the client of the payment arrangement with the executing broker
D. The IAR must notify RIA of the payment arrangement with the executing broker
Correct Answer:
C. The IAR must notify the client of the payment arrangement with the executing broker .
Explanation:
Consider a hypothetical closed economy in which households spend $0.65 of each additional dollar they earn and save the remaining $0.35. The marginal propensity to consume (MPC) for this economy is , and the spending multiplier for this economy is .
Answer:
Marginal propensity to consume or MPC = 0.65
Multiplier or k = 2.85714 rounded off to 2.86
Explanation:
The marginal propensity to consume (MPC) is the proportion of increased disposable income that consumers spend. It is a metric to quantify the induced consumption and how an increase in consumer spending occurs as a result of increase in income.
MPC is calculated as follows,
MPC = Change in consumer spending / change in income
MPC = 0.65 / 1
MPC = 0.65
To calculate the multiplier, we simply use the following formula,
Multiplier or k = 1 / (1 - MPC)
k = 1 / (1 - 0.65)
k = 2.85714 rounded off to 2.86
The marginal propensity to consume is a measure in economics that quantifies induced consumption, or the idea that private expenditure grows in tandem with disposable income.
The spending power is the amount of expendable cash spent on consumption by individuals.
The answers to the questions in the context are:
Marginal propensity to consume or MPC = 0.65
Multiplier or k = 2.85714 rounded off to 2.86
The proportion of extra discretionary income spent by the customer is defined as the level of consumption (MPC).
It's a statistic for measuring induced consumption, or how an increase in consumer spending occurs as a result of an increase in income.
MPC is calculated as follows,
MPC = [tex]\frac{\text{Change in consumer spending}}{\text{change in income}}[/tex]
MPC = 0.65 / 1
MPC = 0.65
To calculate the multiplier:
Multiplier or k = [tex]\frac{1}{1-MPC}[/tex]
k = [tex]\frac{1}{1-0.65}[/tex]
k = 2.85714 rounded off to 2.86
Therefore,
Marginal propensity to consume or MPC = 0.65
Multiplier or k = 2.85714 rounded off to 2.86
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Next week, Mortimer is preparing to go to work for the Illinois department of Child Services. He was surprised when his friends told him that he was going to have to pay one percent of his salary to the union that represents the unionized workers that would include Mortimer, whether he joined the union or not - a so-called agency fee to prevent 'free riders'. This was for services provided to Mortimer, including collective bargaining and grievance representation. Mortimer was shocked - no one had told him about this! What advice would you provide to Mortimer?
Answer:
The implication is that the Illinois Department of Child Services is a unionized workplace.
Mortimer will derive better benefits that surpass the costs of membership. He is covered in all collective bargains, even when he resigns his union membership. Unions negotiate for better working conditions, higher pays, and improved benefits.
When Mortimer has any grievance against the department, the union will also represent him, thereby making his life easier since unions can negotiate better with employers than individual workers.
Mortimer is even lucky to find a job at a unionized workplace because the jobs are not usually advertised as union members easily bring in their relatives and friends to occupy such vacancies.
Explanation:
Most of the disadvantages that Mortimer should complain about unions are disadvantages to the employer and not to him as an individual worker. For the employer, the union acts as a form of monopoly that can decide whether the workers would work or not. The unionized workers are not easy to replace with other workers.
he beginning share price for a security over a three-year period was $50. Subsequent year-end prices were $62, $58 and $64. The arithmetic average annual rate of return and the geometric average annual rate of return for this stock were:
Answer:
Arithmetic average rate of return = 9.30%
geometric average annual rate of return = 8.58%
Explanation:
share price at the beginning = $50
time = 3 year
price at the end of year 1 = $62
price at the end of year 2 = $58
price at the end of year 3 = $64
Annual rate of return in year 1 = ($62 / $50 - 1) x 100 = 24%
Annual rate of return in year 2 = ($58 / $62 - 1) x 100 = -6.45%
Annual rate of return in year 3 = \($64 / $58 - 1) x 100 = 10.34%
Arithmetic average rate of return = sum of annual rate of return / 3
Arithmetic average rate of return = (24% + -6.45% + 10.34%) / 3
Arithmetic average rate of return = 9.30%
geometric average annual rate of return = { (1 + r1) x (1 + r2) x (1 + r3) }^1/3 - 1
= (1.24) x (0.9355) x (1.1034)^1/3 - 1 = 8.58%
_______ appraisals occur between managers and their subordinates whenever the need to discuss ongoing progress and areas for improvement arise.
Answer: Informal
Explanation: appraisals that occur between managers and their subordinates whenever the need to discuss ongoing progress and areas for improvement arise is known as an informal appraisal. Here, a manager provides significant feedback and direction to his employees outside of a formal review meeting thus providing opportunities for coaching and rapport building. It is carried out whenever the manager or supervisor deems it necessary.
Millie withdraws $1,000 from her checking account so she can have $1,000 in cash. If no other changes occur, M1 will
Answer:
M1 will not change
Explanation:
M1 is the money supply that is composed of physical currency , coin, demand deposits, travellers' checks, checking accounts, and negotiable order of withdrawal (NOW) accounts. M1 includes the most liquid of money supply.
Because checking account and cash are both components of M1, there would be no change in M1
Sarah takes out a loan today for $26,000 at an interest rate of 2 percent a year. She plans to repay the loan after 5 years. How much will he have to pay?
Sarah will have to pay:__________
Answer:
$28,706.10
Explanation:
The computation of the amount of pay is shown below:
Here we have to find the future value by using the following formula
Future value = Present value × (1 + interest rate)^number of years
= $26,000 × (1 + 0.02)^5
= $28,706.10
We simply applied the above formula so that the amount of pay could be come and the same is to be considered
Your client is 40 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $5,000 per year; and you advise her to invest it in the stock market, which you expect to provide an average return of 9% in the future.
Answer:
14,000
Explanation:
im smart
Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturity:
Date Cash Effective Decrease in Outstanding
interest interest balance balance
1/1/2021 $207,020
6/30/2021 $7,000 $6,211 $789 206,230
12/31/2021 7,000 6,187 813 205,417
6/30/2022 7,000 6,163 837 204,580
12/31/2022 7,000 6,137 863 203,717
6/30/2023 7,000 6,112 888 202,829
12/31/2023 7,000 6,085 915 201,913
6/30/2024 7,000 6,057 943 200,971
12/31/2024 7,000 6,029 971 200,000
What is the annual stated interest rate on the bonds?
a. 3.5%
b. 6%
c. 7%
d. none of the above
Answer:
c. 7%
Explanation:
According to the given scenario, the computation of the annual stated interest rate on the bonds is shown below:-
Sated interest Rate = Cash interest ÷ Face Value of the bond × 2
= $7,000÷ $200,000 × 2
= 7%
Therefore for computing the annual stated interest rate on the bonds we simply applied the above formula. hence the correct option is c
A subcontractor is responsible for outfitting six satellites that will be used for solar research. Four of the six have been completed in a total of 600 hours. If the crew has a 75% learning curve, how long should it take them to finish the last two units?
Answer: ∑Tₓ = 201.222
time required to complete the last two units is 201.222 minutes
Explanation:
Given that,
total time required to four units is 600 hours,
Learning curve applied is 75% and from the learning curve coefficient table, total time factor to complete four units at 75% learning curve is 2.946
so
∑Tₙ = T₁ × total time factor
{ ∑Tₙ is total time required to complete all the units which is 600 hrs, T₁ is Time for first unit, total time factor = 2.946 }
we substitute
∑T₄ = ∑T₁ × total time factor
600 = ∑T₁ × 2.946
∑T₁ = 600/2.946
∑T₁ = 203.666 minutes
Now to get the total time required to complete 6 units, we say:
∑T₆ = ∑T₁ × total time factor
Note that total time factor at this point changes;
( from the learning curve coefficient table, total time factor to complete 6 units at 75% learning curve is 3.934)
so we substitute
∑T₆ = 203.666 × 3.934
∑T₆ = 801.222
Now to find how long should it take them to finish the last two units, we say
∑Tₓ = ∑T₆ - ∑T₄
∑Tₓ = 801.222 - 600
∑Tₓ = 201.222
Therefore time required to complete the last two units is 201.222 minutes
The time required to complete the last two units is 201.222 minutes
Given data
Total time required to four units is 600 hours
Learning curve applied is 75% and 75% learning curve is 2.946
∑Tₙ = T₁ × total time factor
{ ∑Tₙ is total time required to complete all the units which is 600 hrs, T₁ is Time for first unit, total time factor = 2.946 }
we substitute
∑T₄ = ∑T₁ × total time factor
600 = ∑T₁ × 2.946
∑T₁ = 600/2.946
∑T₁ = 203.666 minutes
Now to get the total time required to complete 6 units, we say:
∑T₆ = ∑T₁ × total time factor
so we substitute
∑T₆ = 203.666 × 3.934
∑T₆ = 801.222
Now, we will find how long should it take them to finish the last two units
∑Tₓ = ∑T₆ - ∑T₄
∑Tₓ = 801.222 - 600
∑Tₓ = 201.222
In conclusion, the time required to complete the last two units is 201.222 minutes
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ABC is a full-service technology company. They provide equipment, installation services as well as training. Customers can purchase any product or service separately or as a bundled package. Container Corporation purchased computer equipment, installation and training for a total cost of $144,000 on March 15, 2021. Estimated standalone fair values of the equipment, installation and training are $90,000, $60,000 and $30,000 respectively. The journal entry to record the transaction on March 15, 2021 will include a
Answer:
ABCJournal Entries:Debit Cash or Accounts Receivable (Container Corporation) $144,000
Credit Sales Revenue $72,000
Credit Installation Revenue $48,000
Credit Training Revenue $24,000
To record the sale of goods and services worth $144,000.
Explanation:
a) Data and Calculations:
Performance Obligations and Contract Price:
Computer equipment = $90,000/$180,000 x $144,000 = $72,000
Installation = $60,000 x 0.80 = $48,000
Training = $30,000 x 0.80 = $24,000
Total purchase costs = $144,000
b) The performance obligations and the consideration prices are allocated accordingly based on their separate consideration values.
Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment $400,000 $600,000 Annual net income 30,000 46,000 Net annual cash inflow 110,000 146,000 Estimated useful life 5 years 6 years Salvage value -0- -0- The company requires a 10% rate of return on all new investments. Present Value of an Annuity of 1 Periods 9% 10% 11% 12% 5 3.890 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111 "The net present value for Project Nuts" is Group of answer choices
Answer:
NPV = $35,868.06
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV for Project Nuts
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-600,000
Cash flow each year from year 1 to 6 = 146,000
I = 10%
NPV = $35,868.06
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Andrews Corp. ended the year carrying $153,576,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.?
Answer:
$153,576,000
Explanation:
The reason is that the company has sold maximum number of units that it can in the year. If it desires to sell all of its stock then it will have to decrease the cost of the product to increase the demand of the product. The least level of cost that the company can charge will be its finished goods recorded value which is the price at which the company breakevens.
Hence the additional sales would be $153,576,000 which is the carrying worth of inventory.
Your boss has asked you to hand deliver five invitations to a special luncheon he is hosting. When you receive the
invitations, they have only first and last names but no addresses. You remember that they all live side by side in an
apartment building on Central Street. The boss left the following information with his assistant, but it is all you have. Time to
problem-solve to figure out who lives where!
This much you know for sure Carly has Greg as one next-door neighbor and the Joneses as her other next-door
neighbors. Now it's it up to you to figure out who lives in the other apartments. It may be helpful for you to draw five boxes
to use as a visual guide. Furthermore, writing names on your drawing in pencil will allow you to keep track of the neighbors
as you place them in their homes.
1 The Smiths live in the westernmost apartment, Louis lives in the easternmost
2. Leon has Mia as one next-door neighbor with TJ on the other side.
3. Both Tami and TJ live east of the Williamses.
4. TJ lives next door to the Browns
5. Tom lives west of the Garcias and east of Carly
6. Kris and Tami are next-door neighbors. The Garcias also live next to Tami but on the other side.
7. Nikki lives east of TJ.
Answer:
1)Smiths
2)Nikki
3)Williams
4)Mia
5) Leon
6)TJ
7)Browns
8)Joneses
9)Carley
10)Greg
11)Tom
12)Garcias
13)Tami
14)Kris
15)Loise
Explanation:
What is the yield to maturity of a -year, bond with a % coupon rate and semiannual coupons if this bond is currently trading for a price of ?
What is the yield to maturity of a five-year, $5000 bond with a 4.5% coupon rate and semi-annual coupons if this bond is currently trading for a price of $4876?
A) 6.30%
B) 4.50%
C) 4.30%
D) 5.07%
E) 8.60%
Answer:
5.07%
Explanation:
Given the following parameters from the question:
Number of years = 5
N => Number of compounding periods = 5 * 2 = 10
FV => Face Value = $5,000
PV => Present Value = $4876
Percentage rate = 4.5%
PMT => Annuity Payment = Face Value * percentage
=> 5,000 * 0.045 = 225
Given that, it is semi annual rate, we have 225 / 2 = 112.5
CPT YTM or I/Y => Yield to Maturity = 2.53 * 2 = 5.07%
Hence, the final answer is 5.07%
Suppose your yearly demand for renting DVDs is Q = 20 − 4P. If there is a rental club that charges $2 per rental plus an annual membership fee, what is the most that you would be willing to pay for the annual membership fee?
Answer:
$12
Explanation:
If P = $2 then the Q will be;
Q = 20 - 4 * 2
Q = 20 - 8
Q = 12
The maximum annual membership fee will be equal to the amount of demand. The annual membership fee cannot be greater than the demand function if so there will be decline in the demand.
Historically the stock market goes up when there is bad news on unemployment. The latest statistics show the unemployment rate is skyrocketing so this could be a good time to buy stocks.
The arguments target is:
A. Bad news on unemployment
B. The stock market in the past when there is bad news on unemployment
C. The stock market now
Answer: C. The stock market now
Explanation:
The Argument target refers to the subject of the discussion in question. The speaker in question is attempting to explain why it would be a good time to buy stocks in the present which concerns the stock market today making it the subject.
The speaker does this by calling into evidence, the correlations between variables in the past and showing that with one variable ( high unemployment) currently in effect, the other variable (increasing stock prices) which it correlates with therefore has a chance of happening in the present.
Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The variable costs for each product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales 7 hours; and Wales 1 hour. Assuming that Widgeon Co. can sell all of the products it can make, what is the maximum contribution margin it can earn per month?
a. $56,000.
b. $34,000.
c. $49,000.
d. $70,000.
Answer:
b. $34,000.
Explanation:
The computation of contribution margin is shown below:-
Particulars Bales Tales Wales
Seeling price $55 $78 $32
Variable cost $20 $50 $15
Contribution
margin $35 $28 $17
Required hour to
process 5 7 1
Contribution margin
per hour 7 4 17
Maximum contribution margin is
= Contribution margin per hour × number of machine hours
= 17 × 2,000
= $34,000
[The following information applies to the questions displayed below.]
Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.
May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000).
5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $15,000.
7 Macy returns 125 units because they did not fit the customer’s needs (invoice amount: $1,750). Allied restores the units, which cost $1,250, to its inventory.
8 Macy discovers that 200 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage.
15
Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.
Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.)
Answer:
Allied Merchandisers
Journal Entries
Date General Journal Debit Credit
03-May Merchandise Inventory $20,000
To Cash $20,000
05-May Accounts Receivable $21,000
To Sales $21,000
05-May Cost of goods sold $15,000
To Merchandise Inventory $15,000
07-May Sales Returns and allowances $1,750
To Accounts Receivable $1,750
07-May Merchandise Inventory $1,250
To Cost of goods sold $1,250
08-May Sales Returns and allowances $300
To Accounts Receivable $300
15-May Cash $18,571
Sales Discounts $379
($18950*2%)
To Accounts receivable $18,950
($21000-$1750-$300)
In order to document a business transaction in the accounting records of the company, a journal entry is employed. A journal entry is often made in the general ledger, but it can also be made in a subsidiary ledger and subsequently rolled forward into the general ledger after being summarised.
The journal entry has been attached below:
Allied Merchandisers
Journal Entries
Date General Journal Debit Credit
03-May Merchandise Inventory $20,000
To Cash $20,000
05-May Accounts Receivable $21,000
To Sales $21,000
05-May Cost of goods sold $15,000
To Merchandise Inventory $15,000
07-May Sales Returns and allowances $1,750
To Accounts Receivable $1,750
07-May Merchandise Inventory $1,250
To Cost of goods sold is $1,250
08-May Sales Returns and allowances $300
To Accounts Receivable $300
15-May Cash $18,571
Sales Discounts $379
($18950*2%)
To Accounts receivable $18,950
($21000-$1750-$300)
After then, the general ledger is utilized to produce the company's financial statements. The idea behind a journal entry is to use double-entry accounting, which requires that every company transaction be recorded at least twice.
For instance, when you make a cash sale, the revenue account and the cash account are both increased. Alternatively, if you purchase items on credit, this raises both the accounts payable and inventory accounts.
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On the first day of the fiscal year, a company issues a $8,800,000, 7%, 10-year bond that pays semiannual interest of $308,000 ($8,800,000 × 7% × ½), receiving cash of $7,655,303. Required:Journalize the first interest payment and the amortization of the related bond discount.
Answer and Explanation:
The journal entry is shown below:
Interest expense $403,391
To Cash $308,000
To Discount on note payable $95,391
{($8,800,000 - $7,655,303) ÷ 12}
Here we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets and credited the discount on note payable
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $655,500 $546,000 Marketable securities 759,000 614,300 Accounts and notes receivable (net) 310,500 204,700 Inventories 1,039,500 674,100 Prepaid expenses 535,500 430,900 Total current assets $3,300,000 $2,470,000 Current liabilities: Accounts and notes payable (short-term) $435,000 $455,000 Accrued liabilities 315,000 195,000 Total current liabilities $750,000 $650,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
Answer:
1. Previous Year = $1,820,000, Current Year = $2,550,000
2. Previous Year = 3.80 times , Current Year = 4.40 times
3. Previous Year = 2.70 times, Current Year = 3.00 times
Explanation:
working capital = current assets - current liabilities
working capital (Previous Year) = $2,470,000 - $650,000
= $1,820,000
working capital (Previous Year) = $3,300,000 - $750,000
= $2,550,000
Current ratio = current assets ÷ current liabilities
working capital (Previous Year) = $2,470,000 ÷ $650,000
= 3.80 times
working capital (Previous Year) = $3,300,000 ÷ $750,000
= 4.40 times
Quick ratio = (current assets - inventory) ÷ current liabilities
working capital (Previous Year) = ($2,470,000 - 674,100) ÷ $650,000
= 2.70 times
working capital (Previous Year) = ($3,300,000 - 1,039,500) ÷ $750,000
= 3.00 times
All of the following are factors that may complicate capital investment analysis except a.qualitative factors. b.changes in price levels. c.the federal income tax. d.the age of the current fixed assets.
Answer:
Correct Answer:
a.qualitative factors.
Explanation:
Capital investment analysis is the process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets. For example, in a situation where a decision was taken to install new equipment, replace old equipment, and purchase or construct a new building.
Answer:
d.the age of the current fixed assets.
Explanation:
The age of current fixed assets is straight forward since it was set at start of operation based on company`s usage thus within the entity`s control.
However the other factors makes capital investment analysis complex as they are not within the entity`s control.
Company X was expected to have earnings per share of $0.52 for the upcoming quarter. On the day of the results, the company reported earnings per share of $0.83. What happened to the share price when the stock market opened?
Answer:
Rise in stock price.
Explanation:
In general, the stock price has increased because the expected earning was $0.52 per share but the actual earnings were $0.83. therefore, we can say that stock prices have increased. moreover, there are other factors that may affect the stock price. But in this case. A positive surprise in the earnings per share results in stock price going up.
Your auto dealer gives you the choice to pay $15,500 cash now, or make three payments: $8,200 now, $4,200 in one year and $3,200 in two years. If your cost of money (discount rate) is 7.25%, what is the PV of the installment plan?
Answer:
The answer is $14,898.07
Explanation:
Assume that the cost of money (discount rate) of 7.25% is on annual basis.
Present value (PV) of the installment plan is:
PV = Down payment + PV(first installment) + PV(second installment)
= $8,200 + $4,200 / (1 + 7.25%) + $3,200 / (1 + 7.25%)^2 = $14,898.07
Obviously, the three payments option is more lucrative than the 100% down payment one.
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense—selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.
Debit Credit
Merchandise inventory (ending) $43,500
Other (noninventory) assets 174,000
Total liabilities $50,243
Common stock 58,556
Retained earnings 83,482
Dividends 8,000
Sales 297,540
Sales discounts 4,552
Sales returns and allowances 19,638
Cost of goods sold 114,570
Sales salaries expense 40,763
Rent expense—Selling space 13,984
Store supplies expense 3,570
Advertising expense 25,291
Office salaries expense 37,193
Rent expense—Office space 3,570
Office supplies expense 1,190
Totals $ 489,821 $489,821
Beginning merchandise inventory was $35,105. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.
Invoice cost of merchandise purchases $127,890
Purchases discounts received 2,686
Purchases returns and allowances 6,139
Costs of transportation-in 3,900
Required:
1. Compute the company’s net sales for the year.
2. Compute the company’s total cost of merchandise purchased for the year.
3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.
4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.
Answer:
1. Net sales = $273,350
2. Total cost of merchandise purchased = $122,965
3. Gross profit = $158,780; and Net Income = $33,219
4. Net Income = $33,219
Explanation:
Note: The data in the question are merged. They are therefore sorted before answering the question. See the attached pdf file for the sorted question.
The explantion to the answers are now provided as follows:
1. Compute the company’s net sales for the year.
Note: See the attached excel file for the net sales computation.
2. Compute the company’s total cost of merchandise purchased for the year.
Note: See the attached excel file for total cost of merchandise purchased computation.
3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.
Note: See the attached excel file the multiple-step income statement.
A multi-step income statement is a detailed income statement that presents net sales, cost of goods sold, gross profit, expenses and overall net profit or loss of a company for a particular accounting period.
4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.
Note: See the attached excel file the single-step income statement.
A single step income statement is a less detailed income statement that only present all expenses including cost of goods sold in one column without breaking down expenses into categories of net sales, cost of goods sold, gross profit, expenses and overall net profit or loss of a company for a particular accounting period.
Suppose that we have the following information concerning the government's finances and the macroeconomy for a given year: Government Debt: $12 trillion Inflation: 10% Nominal Deficit: $1.5 trillion What is the real deficit for the year
Answer: $300 billion
Explanation:
The real deficit that a Government has is one that has been adjusted for inflationary effects. It is calculated by subtracting the inflation rate times the total debt from the nominal deficit.
= Nominal deficit - (Inflation rate * Total debt)
= 1.5 trillion - ( 10% * 12 trillion)
= 1.5 trillion - 1.2 trillion
= $300 billion
While making purchase decisions, which of the following products is most likely to elicit the greatest reference group influence?
A) A car.
B) A medicine.
C) An award-winning novel.
D) A toothbrush.
Answer: a car
Explanation:
While making purchase decisions, the product that is most likely to elicit the greatest reference group influence will be a car.
This because when an individual has a car, other people see the person and use that as a reference group. It should also be noted that a good thatbis considered public good has a strong influence group.
While making purchase decisions, the product that is most likely to elicit the greatest reference group influence is A) A car.
What is a reference group?A reference group is a group that can influence an individual's buying preferences.
The influence wielded by a reference group depends on the level of conformity within the group.
Thus, while making purchase decisions, the product that is most likely to elicit the greatest reference group influence is A) A car.
Learn more about reference groups in consumer behavior at https://brainly.com/question/13362488
TB MC Qu. 7-137 Farris Corporation, which has ... Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 144 Units in beginning inventory 0 Units produced 9,350 Units sold 8,950 Units in ending inventory 400 Variable costs per unit: Direct materials $ 26 Direct labor $ 68 Variable manufacturing overhead $ 14 Variable selling and administrative expense $ 18 Fixed costs: Fixed manufacturing overhead $ 140,250 Fixed selling and administrative expense $ 9,600 What is the net operating income (loss) for the month under variable costing
Answer:
Net operating income= $11,250
Explanation:
Giving the following information:
Selling price $144
Units sold 8,950
Variable costs per unit:
Direct materials $26
Direct labor $68
Variable manufacturing overhead $14
Variable selling and administrative expense $18
Total variable cost= $126
Fixed costs:
Fixed manufacturing overhead $140,250
Fixed selling and administrative expense $9,600
Variable costing income statement:
Sales= 8,950*144= 1,288,800
Total variable cost= (126*8,950)= (1,127,700)
Contribution margin= 161,100
Fixed manufacturing overhead= (140,250)
Fixed selling and administrative expense= (9,600)
Net operating income= 11,250
Becker Financial recently declared a 2-for-1 stock split. Prior to the split, the stock sold for $60 per share. If the firm's total market value is unchanged by the split, what will the stock price be following the split?a. $35.28b. $39.53c. $42.50d. $33.58e. $33.15
Answer:
$30
Explanation:
In a 2 for 1 split, for every 1 share owned, the shareholder receives 2 shares
share price after split = share price before split / 2 = $60 / 2 = $30
