Answer:
A.
Explanation:
The keynesian prescription for stabilizing the economy implies government intervention at macroeconomic level-increasing aggregate demand when private demand falls and decreasing aggregate demand when private demand rises.
Create the following budgets for each quarter in the year with the data provided below. Each budget will show results for each quarter and a total for the year.
1. Sales budget
2. Cash collections budget
3. Cash budget Data
a. The budgeted unit sales are 500 units, 700 units, 800 units, and 1,000 units for quarters 1-4, respectively. The budgeted selling price for the year is $50 per unit.
b. All sales are on credit. 50% percent of all credit sales are collected in the quarter of the sale, 35% are collected in the next quarter, and the remainder is collected in the quarter after. The following data is provided to complete the cash collections budget:
1. Q1 cash collection from prior year Q4 sales: $9,000
2. Q1 cash collection from prior year Q3 sales: $2,000
3. Q2 cash collection from prior year Q4 sales: $1,000
c. The company plans to maintain a minimum cash balance at the end of each quarter of $60,000. If the cash balance is below $60,000, the company will borrow money from the bank to arrive at a $60,000 balance. All borrowings take place on the first day of the quarter and have a 12-month maturity, an interest rate of 2.5% per quarter, and interest paid quarterly. The following data is provided to complete the cash budget:
1. Beginning cash balance: $70,000
2. Q1 cash disbursement: $26,000
3. Q2 cash disbursement: $41,250
4. Q3 cash disbursement: $34.000
5. Q4 cash disbursement: $38.000
Answer:
1. Sales Budget:
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Budgeted unit sales 500 700 800 1,000 3,000
Sales revenue $25,000 $35,000 $40,000 $50,000 $150,000
2. Cash collections budget:
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
50% sales quarter $12,500 $17,500 $20,000 $25,000 $75,000
35% next quarter 9,000 8,750 12,250 14,000 44,000
15% quarter after 2,000 1,000 3,750 5,250 12,000
Total collections $23,500 $27,250 $36,000 $44,250 $131,000
3. Cash budget data:
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Beginning balance $70,000 $67,500 $60,325 $62,150 $70,000
Total collections $23,500 $27,250 $36,000 $44,250 $131,000
Bank borrowing 0 7,000 0 0 7,000
Total cash available $93,500 $101,750 $96,325 $106,400 $208,000
Cash disbursement $26,000 $41,250 $34,000 $38,000 $139,250
Interest expense 0 175 175 175 525
Ending balance $67,500 $60,325 $62,150 $68,225 $68,225
Minimum cash 60,000 60,000 60,000 60,000 60,000
Excess (Deficit) $7,500 $325 $2,150 $8,225 $8,225
Explanation:
a) Data and Calculations:
Budgeted selling price per unit = $50
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Budgeted unit sales 500 700 800 1,000 3,000
Sales revenue $25,000 $35,000 $40,000 $50,000 $150,000
Cash collections:
50% sales quarter $12,500 $17,500 $20,000 $25,000 $75,000
35% next quarter 9,000 8,750 12,250 14,000 44,000
15% quarter after 2,000 1,000 3,750 5,250 12,000
Total collections $23,500 $27,250 $36,000 $44,250 $131,000
Minimum cash balance at the end of each quarter = $60,000
Interest rate for borrowing to reach minimum cash requirement = 2.5% per quarter
1. Beginning cash balance: $70,000
2. Q1 cash disbursement: $26,000
3. Q2 cash disbursement: $41,250
4. Q3 cash disbursement: $34.000
5. Q4 cash disbursement: $38.000
Park Co is considering an investment that requires immediate payment of $28.245 and provides expected cash inflows of 59,300 annually for four years. Assume Park Co requires a 7% return on its investments.
What is the net present value of this investment?
Answer:
The net present value of this investment is $3,256.06.
Explanation:
Note: There two errors in the figures provided in this question. They are they therefore fixed before answering this question as follows:
Park Co is considering an investment that requires immediate payment of $28,245 and provides expected cash inflows of $9,300 annually for four years. Assume Park Co requires a 7% return on its investments.
What is the net present value of this investment?
The explanation of the answer is now provided as follows:
The present value (PV) of the annual expected cash inflows of $9,300 can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV of the annual expected cash inflows = Annual expected cash inflows * ((1 - (1 / (1 + rate of returns))^number of years) / rate of returns) = $9,300 * ((1 - (1 / (1 + 0.07))^4) / 0.07) = $31,501.06
Net present value = PV of the annual expected cash inflows – Required immediate payment for the investment = $31,501.06 - $28,245 = $3,256.06
Therefore, the net present value of this investment is $3,256.06.
Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the journal entry necessary to record the repurchase of stock on June 30?A. Debit Common Stock $2,300; credit Cash $2,300.
B. Debit Common Stock $20; debit Treasury Stock $2,290; credit Cash $2,300.
C. Debit Common Stock $2,300; credit Treasury Stock $2,000; credit Paid-In Capital, Treasury Stock $300.
D. Debit Cash $2,300; credit Paid-in Capital, Treasury Stock $300; credit Treasury Stock $2,000.
E. Debit Cash $2,300; credit Treasury Stock $2,300.
Answer:
When shares are repurchased, they are recorded at the cost price in the books which means that they will be recorded at:
= 100 * 40
= $4,000
Cash will then be credited because assets are credited when they reduce.
Treasury stock will be debited to show that Equity is reducing.
Date Account Title Debit Credit
June, 30 Treasury Stock $4,000
Cash $4,000
A trial balance is a(n) (list/balance/chart)
of accounts and their balances at a point in time and is used to confirm that the sum of debit account balances equals the sum of
account balances. Use one word for each blank.
Answer:
- List; credit
"A trial balance is a(n) list of accounts and their balances at a point in time and is used to confirm that the sum of debit account balances equals the sum of credit account balances."
Explanation:
'Trial Balance' is described as the 'statement of the balances of all nominal accounts in a double-entry ledger.' It is primarily made with the aim to examine the equality in the debit, as well as, credit balances. As per the accounting rules, the total value of the debits must be equal to the total of credit values. Any difference or discrepancy in the balance signals that an error has been made in the calculation or making the entries and certain transactions are missed out. Thus, the correct words would be 'list and credit.'
Travis and Andrea were divorced in 2017. Their only marital property consisted of a personal residence (fair market value of $400,000, cost of $200,000), and publicly traded stocks (fair market value of $800,000, cost basis of $500,000). Under the terms of the divorce agreement, Andrea received the personal residence and Travis received the stocks. In addition, Andrea was to receive $50,000 for eight years. I. If the $50,000 annual payments are to be made to Andrea or her estate (if she dies before the end of the eight years), the payments will qualify as alimony. II. Andrea has a taxable gain from an exchange of her one-half interest in the stocks for Travis' one-half interest in the house and cash. III. If Travis sells the stocks for $900,000, he must recognize a $400,000 gain. a.I, II, and III are true. b.Only III is true. c.Only I and II are true. d.Only I and III are true.
Answer: B. b.Only III is true.
Explanation:
It should be noted that in order to qualify as an alimony, then the cash payments have to stop when the payer dies.
It should be noted that the $50,000 annual payments that are to be made to Andrea or her estate if she dies before the end of the eight years doesn't qualify as alimony.
Therefore, the correct option will be that If Travis sells the stocks for $900,000, he must recognize a $400,000 gain.
Therefore, only III is correct.
Molly sells bracelets to Jean's Place, a boutique store. Molly is scheduled to deliver 100 bracelets on July 1. On June 15, Jean, the owner of Jean's Place calls Molly and says "I might not be able to pay for your bracelets." Molly does not deliver the bracelets on July 1. Jean can probably recover from Molly for breach of contract. Group of answer choices True False
Answer: False
Explanation:
The contract is such that Molly agreed to bring bracelets if Jean would pay for said bracelets.
The terms of the contract therefore are that Jean would pay and Molly would deliver. Jean then calls Molly and says that they will be unable to pay which means that they are not going to be able to hold up their responsibilities in the contract.
Molly has the right to then cancel the contract because the other party will not be able to perform their obligations and face no repercussion for it.
Jamar Co. sold its headquarters building at a gain, and simultaneously leased back the building. The lease was reported as a finance lease. At the time of the sale, the gain should be reported as
Answer:
a deferred gain
Explanation:
Deferred gain occurs when the recipient of the proceeds or profits from a transaction do not collect it all upfront. Some of the gain is not collected now but deferred to some future time.
It is referred to as unrealised revenue and is represented on the balance sheet as a liability.
In the given scenario Jamar Co. sold its headquarters building at a gain, and simultaneously leased back the building. This means not all the gains from the sale are received now.
So this is a deferred gain.
Western Electric has 28,000 shares of common stock outstanding at a price per share of $71 and a rate of return of 13.40 percent. The firm has 6,900 shares of 7.00 percent preferred stock outstanding at a price of $91.00 per share. The preferred stock has a par value of $100. The outstanding debt has a total face value of $380,000 and currently sells for 107 percent of face. The yield to maturity on the debt is 7.84 percent. What is the firm's weighted average cost of capital if the tax rate is 39 percent
Answer: 11.05%
Explanation:
The weighted average cost of capital is calculated as follows:
= (Weight of debt * after tax cost of debt) + (weight of equity * cost of equity) + (weight of preferred stock * cost of preferred stock)
Total equity = 28,000 * 71 = $1,988,000
Total preferred stock = 6,900 * 91 = $627,900
Total debt = 380,000 * 107 = $406,600
Total = 1,988,000 + 627,900 + 406,600
= $3,022,500
Cost of preferred stock = Dividend / Current price = 7 / 91 = 7.69%
After tax cost of debt = 7.84% * (1 - 39%) = 4.78%
WACC = (406,000 / 3,022,500 * 4.78%) + (1,988,000 / 3,022,500 * 13.40%) + (627,900 / 3,022,500 * 7.69%)
= 11.05%
who is the cm of korea
Kim boo-kyum is cm ko korea
Answer:
kim book kyum is the cm of korea
Explanation:
hope it helps!!
Suppose that in an economy, investment is $160 billion, saving is $140 billion, government expenditure on goods and services is $150 billion, exports are $200 billion, and imports are $250 billion. What is the amount of tax revenue and the government budget balance?
Answer:
Tax revenue is 120 billion dollars
The government budget balance is -30 billion dollars
The tax revenue for the given situation will be $120 billion; and the government budget balance will be -$30 billion in an economy.
What is a tax revenue?The amount of total revenue generated by an organization or the government in the form of taxes is known as a total tax revenue for such government.
For the given condition, the tax revenue will be computed as,
[tex]\rm Tax\ Revenue\ = (Investments\ - Savings)\ - Expenditure\ + Imports\\\\\rm Tax\ Revenue\ = (160-140)-150+250\\\\\rm Tax\ Revenue\ = \$120[/tex]
Furthermore, the budget balance of the government will show a deficit of $30 billion, as the expenditure and imports of the government are lesser than the exports and revenues.
Hence, the tax revenue is aforementioned.
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Fuente, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,070 2 1,300 3 1,520 4 2,260 a. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4
Answer:
Total FV= $6,765.82
Explanation:
Giving the following information:
Year Cash Flow 1 $ 1,070 2 1,300 3 1,520 4 2,260
Discount rate= 8%
To calculate the total future value, we need to use the following formula on each cash flow:
FV= Cf*(1 + i)^n
FV1= 1,070*(1.08^3)= 1,347.9
FV2= 1,300*(1.08^2)= 1,516.32
FV3= 1,520*1.08= 1,641.6
FV4= 2,260
Total FV= $6,765.82
epartments have estimated annual factory overhead costs of $256,000 and $480,000, respectively. The Fabrication Dept. expects 25,000 machine hours this year. The Assembly Dept. expects $592,000 DL cost this year. Calculate the factory overhead cost that will be charged to each unit of the two products using multiple production dept. factory overhead rates (round to nearest $0.00).
Answer:
Factory overhead cost charged to each unit:
Fabrication Assembly
Factory overhead rates $10.24 $0.81
Machine hours per unit 5
Direct labor cost per unit $118.40
Factory overhead cost per unit $51.20 $95.90
Explanation:
a) Data and Calculations:
Fabrication Assembly
Annual overhead costs $256,000 $480,000
Expected machine hours 25,000 0
Expected direct labor costs 0 $592,000
Overhead rates $10.24 $0.81
($256,000/25,000) ($480,000/$592,000)
Assuming number of units produced = 5,000
Each unit will consume 5 (25,000/5,000) $118.40 ($592,000/5,000)
machine hours direct labor cost
Overhead cost per unit = $51.20 $95.90
($10.24 * 5) ($118.40 * $0.81)
On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $4,500, terms 4/10, n/30. On June 20, SH returns to Oakley inventory that SH had purchased for $1,000. On June 24, SH completely fulfills its obligation to Oakley by making a cash payment. What is the amount of cash paid by SH to Oakley
Answer: $3360
Explanation:
Based on the information given in the question, the amount of cash paid by SH to Oakley will be calculated as thus:
SH will be entitled to a discount of 4% since the payment was made within the discount period, therefore, the discount that is applicable will be:
= $4500 - $1000
= $3,500
Therefore, the amount of cash payment that is made by SH to Oakley will be:
= $3,500 - (4% × $3,500)
= $3500 - (0.04 × $3500)
= $3500 - $140
= $3360
Therefore, the amount of cash paid by SH to Oakley is $3360.
Product quality is ultimately reflected in the __________ and the price that customers are willing to pay. Group of answer choices market share development capability development time development cost
Answer: Market share
Explanation:
When a product is of high quality, more people will want to buy it because humans are drawn to things of superior quality. The quality item will therefore have a higher market share than its competitors.
The price will also reflect this as it would be higher than competing products to show that it is more sought after.
Take the iPhone for example. There are many more smartphones in the market but because of the quality of iPhones, they have such a high market share in the United States.
A state of economic scarcity exists when consumers:
A. do not have enough resources to satisfy all of their wants.
B. save their money in banks instead of spending it.
C. borrow too much money to buy unnecessary products.
D. have their economic freedoms restricted by the government.
Neubart Company owns 100% of the outstanding shares of two European subsidiaries, which operate largely independently and operate in a different industry than Neubart. The subsidiaries' earnings typically are reinvested in their home country. In consolidating the subsidiaries financial statements with those of the U.S. parent, the subsidiaries' financial statement numbers should be:________ a) remeasured using the current rate method. b) remeasured using the temporal method. c) translated using the current rate method. d) translated using the temporal method.
Answer: c) translated using the current rate method.
Explanation:
It should be noted that the translation method is utilized when the financial statements of a subsidiary unit are being expressed in the functional currency of the parent company.
Following the question given above, in consolidating the subsidiaries financial statements with those of the U.S. parent, the subsidiaries' financial statement numbers should be translated using the current rate method.
Therefore, the correct option is C.
A truck that cost $72,000 and on which $60,000 of accumulated depreciation has been recorded was disposed of for $18,000 cash. The entry to record this event would include a
Answer:
Gain of $6,000.
Explanation:
Calculation to determine what The entry to record this event would include
Using this formula
Gain=(Accumulated depreciation+Cash)-Cost
Let plug in the formula
Gain=($60,000+$18,000)-$72,000
Gain=$78,000-$72,000
Gain=$6,000
Therefore The entry to record this event would include a gain of $6,000
An investment offers $2,374 per year for 13 years, with the first payment occurring 1 year from now. If the required return is 8 percent, what is the value of the investment
Answer:
PV= $18,763.56
Explanation:
Giving the following information:
Annual payment (A)= $2,374
Number of payments= 13
Discount rate (i)= 8%
To calculate the present value, we need to use the following formula:
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
PV= 2,374*{(1/0.08) - 1 / [(0.08*(1.08^13)}}
PV= $18,763.56
Suppose Siam Traders has the following results related to cash flows for 2020:
Net Income of $7,200,000
Increase in Accounts Payable of $600,000
Increase in Accounts Receivable of $100,000
Decrease in Debt of $700,000
Depreciation Expenses of $2,000,000
Dividends Paid of $500,000
Decrease in Inventory of $1,000,000
Purchases of Property, Plant, & Equipment of $8,300,000
Other Adjustments from Financing Activities of -$100,000
Other Adjustments from Investing Activities of $400,000
Other Adjustments from Operating Activities of -$200,000
Requried:
Create a statement of cash flows with amounts in thousands.
Answer:
Siam Traders
Siam Traders
Statement of Cash Flows (in thousands)
Operating Activities:
Net Income $7,200
Non-cash adjustment:
Depreciation Expenses $2,000
Increase in Accounts Receivable ($100)
Decrease in Inventory $1,000
Increase in Accounts Payable $600
Other Adjustments from Operating Activities ($200)
Net cash from operating activities $10,500
Investing Activities:
Purchases of Property, Plant, & Equipment ($8,300)
Other Adjustments from Investing Activities $400
Net cash from investing activities ($7,900)
Financing Activities:
Decrease in Debt ($700)
Dividends Paid ($500)
Other Adjustments from Financing Activities of ($100)
Net cash from financing activities ($1,300)
Net cash flows $1,300
Explanation:
a) Data and Calculations:
Net Income of $7,200,000
Increase in Accounts Payable of $600,000
Increase in Accounts Receivable of $100,000
Decrease in Debt of $700,000
Depreciation Expenses of $2,000,000
Dividends Paid of $500,000
Decrease in Inventory of $1,000,000
Purchases of Property, Plant, & Equipment of $8,300,000
Other Adjustments from Financing Activities of -$100,000
Other Adjustments from Investing Activities of $400,000
Other Adjustments from Operating Activities of -$200,000
Operating Activities:
Net Income of $7,200,000
Depreciation Expenses of $2,000,000
Increase in Accounts Receivable of $100,000
Decrease in Inventory of $1,000,000
Increase in Accounts Payable of $600,000
Other Adjustments from Operating Activities of -$200,000
Investing Activities:
Purchases of Property, Plant, & Equipment of $8,300,000
Other Adjustments from Investing Activities of $400,000
Financing Activities:
Decrease in Debt of $700,000
Dividends Paid of $500,000
Other Adjustments from Financing Activities of -$100,000
Discretionary fiscal policy will stabilize the economy most when Group of answer choices deficits are incurred during recessions and surpluses during inflations. deficits are incurred during inflations and surpluses during recessions budget surpluses are continuously incurred. the budget is balanced each year.
Answer:
deficits are incurred during recessions and surpluses during inflations
Explanation:
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes. These policies are carried out in a recession when the government wants to increase total spending
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes . These policies are carried out in periods of inflation when the government wants to reduce money supply in the economy
The Federal Reserve's tool for changing the money supply is the__________ (open market operation or reserve requirement or discont rate) In order to decrease the number of dollars in the U.S. economy the money supply, the Federal Reserve will_________( buy or sell) government bonds.
Answer:
Open market operations; sell
Explanation:
Open market operations; sell
Central bank (Federal bank) use the open market operation that encompasses the increase and decrease of reserve requirement, discount rate, etc. It also includes the selling of government bonds when Fed wants to decrease the money supply in the economy and it buys back when it wants to increase the money supply in the economy.
Consider the following information from the records of Bennington Corporation. The company uses the weighted-average method. Brining Department Materials Conversion Equivalent units of production 1,670 1,660 Costs of beginning work in process $ 250 $ 350Costs added during the period $ 2,255 $ 3,385 i. When computing the cost per equivalent unit for conversion, what is the total cost that will be included in the numerator of that calculation? a. $3,735 b. $2,255 c. $5,640 d. $6,240 ii. What is the cost per equivalent unit for conversion? a. $1.50 b. $1.67 c. $2.20 d. $2.25
Answer:
1. a) $3735
2. d) $2.25
Explanation:
1. Computation of total cost that will be included in the numerator of that calculation
Total Conversion cost = 350+3385
Total Conversion cost= 3735
Therefore the total cost that will be included in the numerator of that calculation is 3735
2. Computation for Cost per equivalent unit of conversion cost
Cost per equivalent unit of conversion cost = 3735/1660
Cost per equivalent unit of conversion cost = 2.25
Therefore Cost per equivalent unit of conversion cost is $2.25
Item 2 On July 1 of the current calendar year, Plum Co. paid $8,000 cash for management services to be performed over a two-year period beginning July 1. Plum follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 of the current year for Plum would include:
Answer:
- July 1st - December 31st (6 months)
- Here, $8,000 is paid for 2 years (24 months)
So, expenses for 6 month = $8,000 * 6/24 = $2,000
Date Journal Entry Debit Credit
Expense $2,000
Prepaid expense $2,000
(To record the expense)
Fiscal policy proponents see fiscal as a superior strategy for market corrections.
a. True
b. False
Answer: True
Explanation:
Fiscal policy refers to the government suing taxation and spending policies to influence the economy of a country. If the government wants to improve production, they reduce taxes and increase spending and if they want to reduce production, they increase taxes and reduce spending.
Fiscal policy proponents believe that the government is right to use fiscal policy to correct the market because its effect is more direct. John Maynard Keynes was one of the most famous proponent for Fiscal policy.
The Baldwin Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,090,000. What will the book value of this purchase (exclude all other plant and equipment) be after its third year of use
Answer:
$38,448,000
Explanation:
Calculation to determine What will the book value of this purchase
First step
Depreciation = (cost - salvage)/useful life
Depreciation= (40,900,000 - 4,090,000 )/15
Depreciation=36810000/15
Depreciation=2454000
Now let determine the
Book value=Cost -Depreciation
Book value=$40,900,000-$2,454,000
Book value=$38,448,000
Therefore the book value of this purchase is$38,448,000
Determine if the research is deductive or inductive: - If because of analysis of data collected, one infers that the problem of turnover can be minimized by three important factors: (i) flexible work hours; (ii) recognition of superior performance of workers through suitable merit pay raises; and (iii) enriching certain types of jobs. If a manager observes that people residing at distances beyond 50 miles from the workplace remain absent more frequently than those he knows to reside close by, and infers thereby that distance is a factor in absenteeism. Fares spent some time reviewing the literature on child behavior and focused particularly on theoretical explanations for gender differences he might expect to find in his upcoming study of children.
Answer:
1. Deductive
2. Inductive
3. Deductive
Explanation:
Deductive research is a form of reasoning that stems from existing theories that can be tested. Data is collected to test a theory and the results are analyzed. The first and third scenarios are deductive research works because there are existing theories or data that can be worked on. In the first instance, data on issues of turnover already exist. In the third scenario, there were theories to explain gender differences.
Inductive research proposes a theory after observation. This is applicable in the second instance where the manager proposes the theory that relates distance to absenteeism after close observation.
Belltone Company made the following expenditures related to its 10-year-old manufacturing facility: 1. The heating system was replaced at a cost of $210,000. The cost of the old system was not known. The company accounts for improvements as reductions of accumulated depreciation. 2. A new wing was added at a cost of $790,000. The new wing substantially increases the productive capacity of the plant. 3. Annual building maintenance was performed at a cost of $16,500. 4. All of the equipment on the assembly line in the plant was rearranged at a cost of $44,000. The re-arrangement clearly increases the productive capacity of the plant.Required: Prepare journal entries to record each of the above expenditures.
Answer:
S/N Journal Entries Debit Credit
1 Accumulated depreciation-Building $210,000
Cash $210,000
2 Building $790,000
Cash $790,000
3 Maintenance expense $16,500
Cash $16,500
4 Equipment $44,000
Cash $44,000
a. Net income was $471,000.
b. Issued common stock for $74,000 cash.
c. Paid cash dividend of $11,000.
d. Paid $130,000 cash to settle a note payable at its $130,000 maturity value.
e. Paid $122,000 cash to acquire its treasury stock.
f. Purchased equipment for $91,000 cash.
Use the above information to determine cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
-$189,000
Explanation:
Calculation to determine the cash flows from financing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Issued common stock for cash $74,000
Less Paid cash dividend ($11,000)
Less Paid cash to settle a note payable ($130,000)
Less Paid cash to acquire its treasury stock ($122,000)
Cash flows from financing activities -$189,000
Therefore the Cash flows from financing activities is -$189,000
Cycle counting ______.
a. is used to determine average cycle service level
b. is used to identify shelves needing repair
c. has a lower tolerance level for slower-moving items
d. follows a schedule such that the quantity of every SKU in inventory is counted at least once a year
Answer:
d. follows a schedule such that the quantity of every SKU in inventory is counted at least once a year
Explanation:
An inventory is a term used to describe a list of finished goods, goods still in the production line and raw materials that would be used for the manufacturing of more goods in a bid to meet the unending consumer demands.
Basically, an inventory can be classified into three (3) main categories;
I. Finished goods.
II. Work in progress (WIP).
III. Raw materials.
An inventory is recorded as a current asset on the balance sheet because it's primarily the most important source of revenue for a business entity.
Generally, it's important for a business to have a good idea of how many inventory it has at a specific period of time. In order to determine this, a process referred to as cycle counting can be used.
Cycle counting is a process that typically involves counting all stock keeping units (SKUs) for a specific period of time (in years), following a schedule that requires counting all items (every SKU in inventory) at least once a year.
Hence, a count of the stock keeping units (SKUs) simply means that you're physically counting how many units of each stock keeping unit (SKU) is carried at a particular point in time.
Furthermore, employees who are referred to as cycle counters are saddled with the responsibility of counting the stock keeping units (SKUs) and recording the information.
In cycle counting, the important items are counted more frequently by the cycle counters.
Production and sales estimates for March for Robin Co. are as follows: Estimated inventory (units), March 1 18,500 Desired inventory (units), March 31 20,000 Expected sales volume (units): Territory M 6,800 Territory L 8,300 Territory L 7,300 Unit sales price $15 The number of units expected to be manufactured in March is
Answer:
Robin Co.
The number of units expected to be manufactured in March is:
= 23,900 units.
Explanation:
a) Data and Calculations:
Estimated inventory (units), March 1 = 18,500
Desired inventory (units), March 31 = 20,000
Expected sales volume (units): Territory M 6,800 Territory N 8,300 Territory L 7,300
Unit sales price = $15
Total expected sales volume (units) = 22,400
Production estimation:
Total expected sales units = 22,400
Desired inventory (units), March 31 20,000
Units available for sale = 42,400
Estimated inventory (units), March 1 18,500
Units expected to be manufactured 23,900
