Answer:
true
Explanation:
In its income statement for the year ended December 31, 2017, Darren Company reported the
following condensed data.
Salaries and wages expense $465,000 Loss on disposal of plant assets $83,500
Cost of goods sold 987,000 Sales revenue 2,210,000
Interest expense 71,000 Income tax expense 25,000
Interest revenue 65,000 Sales discounts 160,000
Depreciation expense 310,000 Utilities expense 110,000
Instructions
(a) Prepare a multi-step income statement.
(b) Calculate the profit margin and gross profit rate.
(c ) In 2016, Darren had a profit margin of 5%. Is the decline in 2017 a cause for concern?
(Ignore income tax effects.)
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a) DARREN COMPANY
Income Statement
For the Year Ended December 31, 2017
Sales
Sales revenue $2,210,000
Less: Sales discounts $160,000
Net Sales $2,050,000
Cost of goods sold $987,000
Gross profit $1,063,000
Operating expenses
Salaries and wages expense $465,000
Depreciation expense $310,000
Utilities expense $110,000
Total operating expenses $885,000
Income from operations $178,000
Other revenues and gains
Interest revenue $65,000
Other expenses and losses
Loss on disposal of plant assets 83,500
Interest expense 71,000 154,500
Income before income taxes 88,500
Income tax expense 25,000 28%
Net income $63,500
(b) Profit margin
Net income $63,500
Net Sales 2,050,000
3.10%
Gross profit rate
Gross profit $1,063,000
Net sales $2,050,000
51.9%
After you have completed E5-8 , consider the following additional question.
1. Assume that cost of goods changed to $1,015,000 and that the income tax rate is 28%.
What impact does this change have on the multi-step income statement and the
profitability ratios?
Answer:
Part a
Darren Company
Multi-step income statement
Sales
Sales revenue $2,210,000
Less: Sales discounts ($160,000)
Net Sales $2,050,000
Cost of goods sold ($987,000)
Gross profit $1,063,000
Operating expenses
Salaries and wages expense $465,000
Depreciation expense $310,000
Utilities expense $110,000
Total operating expenses ($885,000)
Income from operations $178,000
Other revenues and gains
Interest revenue ($65,000)
Other expenses and losses
Loss on disposal of plant assets $83,500
Interest expense $71,000 ($89,500)
Income before income taxes $88,500
Income tax expense 25,000 28% ($25,000)
Net income $63,500
Part b
Darren Company
Profit margin = 3.10 % and gross profit rate = 51.85 %
Part c
Change in profit margin : The Profit Margin has fallen from 5% to 3.10 % in 2017 by 2.10% . The cause of this decline is a concern and must be investigated. The Profit margin rate measure the success with respect of earnings on sales thus more investigations must be done on what caused the earnings to decline in 2017.
Part 1
Cost of Goods Sold has increased by $28,000 ($1,015,000 -$987,000). Income tax rate has not changed.
a. Impact of the change on multi-step income statement
The items of Gross Profit and Income from Operations will decline by $28,000.
b. Impact of the change on profitability ratios
The Profit ratios will decline. Profit margin will be 1.73 %. Gross Profit margin will be 50.49 %
Explanation:
Multiple Step Income Statement shows separately the Operating Income and the Net Income. Operating Income being Income derived from Primary Activities of the Company whilst the Net Income includes the Secondary Activities of the Company such as Income taxes or Sale of assets.
Other Workings :
Profit margin = Net Income / Net Sales x 100
= $63,500 / $2,050,000 x 100
= 3.10 %
Gross Profit rate = Gross Profit / Net Sales x 100
= $1,063,000 / $2,050,000 x 100
=51.85 %
The Total Revenue and Net Earnings are shown individually on the Several Stage Financial Statements. Operating income comes from the company's main activities, whereas net earnings come from the industry's support functions, such as taxable income and divestments.
The income statement has been attached below.
Part. B.
Darren Company
Profit margin = 3.10 % and gross profit rate = 51.85 %
Part. C.
Profitability has dropped by 2.10 percent from 5 percent to 3.10 percent in the year 2017. The basis for this drop is a point of anxiety that needs to be questioned.
Because the gross margin rate evaluates achievement in terms of income on selling, more analysis into what prompted the profitability to drop in 2017 is required.
Part 1
Cost of Goods Sold has boost up by $28,000 ($1,015,000 -$987,000).
The income tax rate has not changed.
a. Impact of the change on the multi-step income statement
The items of Gross Profit and Income from Operations will reduce by $28,000.
b. Impact of the change on profitability ratios
The Profit ratios will decline.
The profit margin will be 1.73 %.
The Gross Profit margin will be 50.49 %
Working Notes:
Profit margin = [tex]\frac{ \text{Net Income}}{ \text{Net Sales}} \times 100[/tex]
= [tex]\frac{ \$63,500}{ \$2,050,000}\times 100[/tex]
= 3.10 %
Gross Profit rate = [tex]\frac{\text{Gross Profit}}{\text{Net Sales}} \times 100[/tex]
= [tex]\frac{ \$1,063,000 }{ \$2,050,000}\times 100[/tex]
=51.85 %
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choosing a computer that costs_____ instead of one that cost ____
means that youll have less money available for other purchases
a 1700 1900
b 1700 1800
c 1800 1700
d 1800 1900
On March 2nd, a fire destroyed the entire inventory stored in a warehouse for the Madison, Inc. The following information is available from the records of the company's periodic inventory system: Beginning inventory 1/01/2020 $989,000 Purchases through 3/02/2020 $784,329 Sales through 3/02/2020 $1,345,789 Gross Profit Ratio 33% Estimate the cost of the inventory destroyed by the fire using the Gross Profit Method.
Answer:
Madison, Inc.
The cost of the inventory destroyed by the fire using the Gross Profit Method is:
$871,650
Explanation:
a) Data and Calculations:
Beginning inventory 1/01/2020 = $989,000
Purchases through 3/02/2020 = $784,329
Sales through 3/02/2020 = $1,345,789
Gross Profit Ratio 33%
Gross profit = $444,110 ($1,345,789 * 33%)
Cost of goods sold = $901,679 ($1,345,789 - $444,110)
Cost of goods available for sale = $1,773,329 ($989,000 + $784,329)
Estimate of the cost of the inventory destroyed by the fire = cost of goods available for sale minus the cost of goods sold
= $871,650 ($1,773,329 - $901,679)
b) The estimate of the cost of the inventory destroyed by the fire is equal to the cost of the ending inventory. It is obtained by subtracting the cost of goods sold from the cost of goods available for sale for the period. The gross profit margin is the difference between the Sales Revenue and the Cost of goods sold. When expressed as a percentage of Sales Revenue, the resulting figure is called the gross profit margin ratio.
Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Set up a schedule of interest expense and discount amortization under the straight-line method
Answer:
Devon Harris Company
Schedule of Interest Expense and Discount Amortization under the straight-line method:
Time Cash Interest Interest Expense Amortization Carrying Amount
0 N/A N/A N/A $1,855,816
1 $200,000 $228,836.80 $28,836.80 $1,884,652.60
2 $200,000 $228,836.80 $28,836.80 $1,913,489.40
3 $200,000 $228,836.80 $28,836.80 $1,942,326.20
4 $200,000 $228,836.80 $28,836.80 $1,971,163.00
5 $200,000 $228,836.80 $28,837.00 $2,000,000
Explanation:
a) Data and Calculations:
10% Bonds' maturity value = $2,000,000
Bonds sales value = $1,855,816
Total discount = $144,184
Annual Interest = $200,000 ($2,000,000 * 10%)
Maturity period = 5 years (January 1, 2020 to January 1, 2025)
Annual amortization of discount = $28,836.80 ($144,184/5)
Total interest cost with amortized discount each year = $228,836.80
b) Under the straight line method, the premium or discount on the bond is amortized in equal amounts over the life of the bond, as demonstrated above.
Based on the information given, it should be noted that the Cash Interest, Discount amortized and Interest Expenses will be $20,000, $28836.80, and $228836.80 respectively.
Interest expenseFrom the information given, the following can be calculated:
Discount on issue = $2000000 - $1855816 = $144184
Discount to be amortized on each interest date = $144184 / 5 = $28836.80
Cash interest annual = $2000000 * 10% = $200000
Therefore, the Cash Interest, Discount amortized and Interest Expenses from 2020 to 2025 will be $20,000, $28836.80, and $228836.80 respectively.
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A market is in equilibrium when A. the government sets the price high enough so that all producers can make profits. B. the government sets the price low enough so that all consumers can afford to purchase as much of the product as they want. C. there is a surplus of the product. D. the price is such that the amount consumers want to buy equals the amount producers want to sell. g
Answer:
D. the price is such that the amount consumers want to buy equals the amount producers want to sell.
Explanation:
A market is in equilibrium when the price is such that the amount consumers want to buy equals the amount producers want to sell.
Generally, a market is considered to be at equilibrium when the quantity of goods and services supplied by the producer is equal to the quantity of goods and services demanded by the consumers.
A direct opposite of this phenomenon is market failure. Market failure is when the market fails to produce the efficient level of output.
This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market. Thus, the demand of the consumer of these goods and services are not being met with the level of supply (output) required i.e the forces of demand and supply are not efficient in producing the level of output required by the economy.
Some of the causes of market failure are imperfect information, monopoly, oligopoly, externalities etc.
The following cost data relate to the manufacturing activities of Black Diamond Ski Company during 2013:
Manufacturing Overhead Costs:
Property taxes, factory $ 3,000
Utilities, factory $ 5,000
Indirect labor $10,000
Depreciation, factory $24,000
Insurance, factory $ 6,000
Total Actual Manufacturing OH Costs $48,000 Other Costs Incurred: Purchases of raw materials $32,000 Direct labor costs $40,000 The Black Diamond Ski Company used 10,200 machine hours during the period. Inventories: Raw Materials, 1/1/13 $ 8,000 Raw Materials, 12/31/13 $ 7,000 Work in Process, 1/1/13 $ 6,000 Work in Process, 12/31/13 $ 7,500 The company uses normal costing to record product costs. The company budgeted for $52,500 in total overhead costs for the year. The cost driver associated with the overhead is machine hours and the company expected to use 10,500 machine hours.
REQUIRED:
1) Compute the amount of over-applied or under-applied overhead cost for the year.
2) Determine the cost of goods manufactured for the year.
Answer:
See Below
Explanation:
1.
= Actual manufacturing overhead cost - Budgeted total overhead
Actual manufacturing overhead cost = $48,000
Budgeted total overhead = $52,500
= $48,000 - $52,500
= $4,500
The above is under applied overhead since Budgeted overhead is more than the actual overhead expended.
2. Cost of goods manufactured
Inventories ; raw materials at the beginning
$8,000
Add purchases of raw materials
$32,000
Less direct materials ending
$7,000
Direct materials used
$33,000
Direct labor cost
$40,000
Manufacturing overhead cost
$77,000
Indirect labor
$10,000
Property tax
$3,000
Utilities factory
$3,000
9. Assume that Cane expects to produce and sell 87,000 Alphas during the current year. A supplier has offered to manufacture and deliver 87,000 Alphas to Cane for a price of $108 per unit. What is the financial advantage (disadvantage) of buying 87,000 units from the supplier instead of making those units?
Answer: Financial disadvantage of -$863,000
Explanation:
If they made the 87 thousand units themselves, they would incur a cost of:
= 87,000 * (Direct labor + Direct materials + Variable manufacturing overhead) + Traceable fixed manufacturing overhead
= 87,000 * (23 + 24 + 22) + (23 * 110,000)
= 87,000 * 69 + 2,530,000
= $8,533,000
Traceable fixed costs are based on the total capacity of 110,000 units being produced and so will not change.
If they buy from the supplier, the cost would be:
= 108 * 87,000
= $9,396,000
Financial advantage (disadvantage) = 8,533,000 - 9,396,000
= -$863,000
Describe the role of communication in effective leadership. Discuss your own administration style and how it may influence your successful completion of your program of study. Use headings to support the organization of your content. (1,000 words, two scholarly sources, APA format) Discuss in your owns words
Answer:
Knowledge and ideas of leader are shared with the team through effective communication.
Explanation:
A good leader possesses many qualities among which effective communication is an essential quality which a leader must have. Leader should be able to express his ideas and inspire others through his leadership skills. Leader should communicate with its team in a routine language and should not use jargons. The team should be involved in decision making and ideas should be gathered through brainstorming.
Jones signs a three-year contract to construct a new office building for Smith. The contract price is $3 million and estimated cost $2 million. For year one, Jones recognizes $1 million of revenue and $800,000 of cost. During year 2, Jones incurs $1.2 million in cost and estimates that during year 3 an additional $1.1 million will be necessary to complete the project. Actual costs incurred during the third year were $1.2 million. For year 3, Jones should recognize a loss of:____.
a. $100,000.
b. $0.
c. $300,000.
d. $200,000.
Answer:
$100,000
Explanation:
Jones incurs $1.2 million in cost and estimates that during year 3 an additional $1.1 million will be necessary to complete the project
additional costs for year 3 over the estimated costs represent an additional loss}
Batch Co. employs knowledge workers and is finding that its employees are retiring closer to age 75 than to age 65. As a result, they recently amended their defined benefit pension plan such that benefits will begin at age 72, with certain exceptions for those employees demonstrating an earlier need, instead of at age 60. Batch Co. has been able to measure the actuarial present value of this amendment, which is the change in the projected benefit obligation (PBO) that results from the change. How will this affect pension expense in current and future periods?
Answer:
It will decrease prior service cost and, as prior service cost is amortized, will decrease pension expense.
Explanation:
In the given if there is any change in the projected benefit obligation so the pension expense would impact in the present and future period by reducing the service cost that incurred before also the service cost that incurred before would be amortized that ultimately reduce the pension expense
Therefore the first option is correct
For the year, Jensen's has depreciation of $2,058, dividends paid of $125, interest expense of $382, an addition to retained earnings of $3,408, and an increase in common stock of $2,500. The total tax rate is 21 percent. What is the operating cash flow
Answer:
$5,973
Explanation:
The computation of operating cash flow is seen below;
Net income = $125 + $3,408 = $3533
Net income $3,533 - Interest expense $382 - Depreciation $2,058 = EBIT $1,093
Tax = 21% × $1,093 = $229.53
Operating cash flow = $1,093 + $2,058 + $2,700 - $229.53 = $5,973
Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 10,000 units and 15,000 units, respectively, with the latter units being 2/3 complete at the end of the period. Universal started 30,000 units into production and completed 25,000 units. Manufacturing costs follow.
Beginning work in process: Materials, $60,000; conversion cost, $150,000
Current costs: Materials, $180,000; conversion cost, $480,000
Universal's equivalent-unit cost for conversion cost is:____.
a. $4.50.
b. $6.00.
c. $8.00.
d. $9.60.
e. some other amount.
Answer: b. $6.00
Explanation:
Equivalent Cost Per Unit = Total Material Cost/Materials Equivalent Units
Materials Equivalent Units
= Opening inventory + Units completed + Ending inventory
= 10,000 + 25,000 + 5,000
= 40,000 units
Equivalent cost per unit = (Beginning WIP Materials + Current costs) / Materials EUP
= (60,000 + 180,000) / 40,000
= $6.00
Note: Ending materials inventory = Units started - Units completed
The balance in the equipment account is $3,150,000, and the balance in the accumulated depreciation—equipment account is $2,075,000. a. What is the book value of the equipment? $fill in the blank 1 b. Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $2,075,000? , because depreciation is an allocation of the of the equipment to the periods benefiting from its use.
Answer:
A. $1,075,000
B. No
Explanation:
A. Calculation for the book value of the equipment
Using this formula
Book value of the equipment=Equipment account -Accumulated depreciation—equipment account
Let plug in the formula
Book value of the equipment= $3,150,000-$2,075,000
Book value of the equipment=$1,075,000
Therefore the book value of the equipment will be $1,075,000
(b) NO the balance in the accumulated depreciation account does NOT mean that the equipment's loss of value is the amount of $2,075,000.
Select the correct answer.
The restaurant manager rarely offers instructions. He expects employees to make decisions without input. He is nice and cares about them, but
they often don't have what they need at the restaurant or don't have enough people working. He is an example of a:
OA Authoritarian leader
OB. Free rein leader
OC, Democratic leader
OD. Narcissistic leader
Answer:
B.
Explanation:
Free rein leadership, also known as the Laissez-Faire style, is a type of leadership in which the manager or leader allows their employees to make decisions. In this form of leadership, the manager gives his/her employees objectives and does not provide any guidance on how to achieve those objectives.
In the given case, this restaurant manager exhibits the quality of free-rein leadership. He has set his employees off the noose to allow them to make decisions on their own.
So, option B is the correct answer.
Answer:
b, free rein leader
Cost of Goods Sold Section, Multiple-Step Income Statement
Based on the information that follows, prepare the cost of goods sold section of a multiple-step income statement.
Merchandise Inventory, January 1, 20-- $37,000
Estimated Returns Inventory, January 1, 20-- 1,000
Purchases 102,000
Purchases Returns and Allowances 4,200
Purchases Discounts 2,040
Freight-In 800
Merchandise Inventory, December 31, 20-- 30,500
Estimated Returns Inventory, December 31, 20-- 1,500
Income Statement
For Year Ended December 31, 20--
Cost of goods sold:
$
$
$
$
$
$
$
Cost of goods sold $
Answer and Explanation:
The preparation of the cost of goods sold section of a multiple-step income statement is presented below:
Cost of goods section
Multiple-income statement
Opening inventory $37,000
Estimated return inventory $1,000
Purchase $102,000
Less purchase returns -$4,200
Less: Purchase discount -$2,040
Add: Freight in $800
Less: closing inventory -$30,500
Less: estimated return inventory -$1,500
Cost of goods sold $102,560
The following accounts are taken from the ledger of Crane Company at December 31, 2017. Notes Payable $19,600 Cash $5,900 Common Stock 24,500 Supplies 4,900 Equipment 74,500 Rent Expense 2,000 Dividends 7,800 Salaries and Wages Payable 2,900 Salaries and Wages Expense 37,200 Accounts Payable 8,800 Service Revenue 84,300 Accounts Receivable 7,800
Prepare a trial balance.
CRANE COMPANY
Trial Balance
For the Month Ended December 31, 2017For the Year Ended December 31, 2017December 31, 2017
Debit Credit
$ $
$ $
Answer:
DEBIT SIDE $140,100
CREDIT SIDE $140,100
Explanation:
Preparation of a trial balance.
CRANE COMPANY Trial Balance For the Month Ended December 31, 2017
DEBIT SIDE
Equipment $74,500
Accounts receivable $7,800
Cash $5,900
Supplies $4,900
Dividends $7,800
Salaries and Wages Expense $37,200
Rent Expense $2,000
TOTAL DEBIT SIDE $140,100
CREDIT SIDE
Common stock $24,500
Notes payable $19,600
Salaries and wages payable $2,900
Accounts payable $8,800
Service Revenue $84,300
TOTAL CREDIT SIDE $140,100
Therefore Prepare a trial balance CRANE COMPANY Trial Balance will have both. DEBIT and CREDIT BALANCE of $140,100
Application of career management model
Summary of Preferred work
1. Components of PWE
2. Tasks and activities more interesting to you
3. Significant talents you want to express at work
4. Importance of independence at work
5. Importance of job security
6. Relationship between work and other parts of life
7. Physical work setting
A review of Parson Corporation's accounting records found that at a volume of 90,000 units, the variable and fixed cost per unit amounted to $8 and $4, respectively. On the basis of this information, what amount of total cost would Parson anticipate at a volume of 85,000 units
Answer:
Total cost= $1,040,000
Explanation:
For 90,000 units:
Unitary variable cost= $8
Unitary fixed cost= $4
First, we need to calculate the total fixed cost:
Total fixed cost= 4*90,000= $360,000
Now, we can determine the total cost for 85,000 units:
Total cost= 85,000*8 + 360,000
Total cost= $1,040,000
Use the following items to prepare a balance sheet and a cash flow statement. Determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows. Balance Sheet and Cash Flows Rent for the month$1,240 Monthly take-home salary$3,420 Cash in checking account 700 Savings account balance 2,110 Spending for food 820 Balance of educational loan 2,930 Current value of automobile 8,590 Telephone bill paid for month 69 Credit card balance 236 Loan payment 177 Auto insurance 239 Household possessions 3,680 Stereo equipment 3,240 Payment for electricity 110 Lunches/parking at work 271 Donations 169 Home computer 1,870 Value of stock investment 1,750 Clothing purchase 148 Restaurant spending 177
Answer:
1. Balance Sheet:
Assets:
Cash in checking account $700
Savings account balance 2,110
Current value of automobile 8,590
Home computer 1,870
Value of stock investment 1,750
Household possessions 3,680
Stereo equipment 3,240 $21,940
Liabilities:
Balance of educational loan 2,930
Credit card balance 236 $3,166
Net Worth $18,774
2. Cash Flows:
Cash Inflows:
Monthly take-home salary $3,420
Outflows:
Rent for the month $1,240
Spending for food 820
Telephone bill paid for month 69
Auto insurance 239
Payment for electricity 110
Lunches/parking at work 271
Donations 169
Clothing purchase 148
Restaurant spending 177
Loan payment 177
Total cash outflows $3,420
Explanation:
Monthly take-home salary $3,420
Rent for the month $1,240
Spending for food 820
Telephone bill paid for month 69
Auto insurance 239
Payment for electricity 110
Lunches/parking at work 271
Donations 169
Clothing purchase 148
Restaurant spending 177
Loan payment 177
Assets:
Cash in checking account 700
Savings account balance 2,110
Current value of automobile 8,590
Home computer 1,870
Value of stock investment 1,750
Household possessions 3,680
Stereo equipment 3,240
Liabilities:
Balance of educational loan 2,930
Credit card balance 236
Ashley Corporation uses a process-cost accounting system. The company adds direct materials and direct labor at the start of its production process; overhead cost is incurred evenly throughout manufacturing. The firm has no beginning work-in-process inventory; its ending work in process is 40% complete. Which of the following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory?
a. Materials, 100%; labor, 100%; overhead cost, 40%.
b. Materials, 100%; labor, 100%; overhead cost, 100%.
c. Materials, 100%; labor 40%; overhead cost, 40%.
d. Materials, 40%; labor, 40%; overhead cost, 60%.
e. Materials, 40%; labor, 40%; overhead cost, 100%.
Answer:
a. Materials, 100%; labor, 100%; overhead cost, 40%
Explanation:
Since Materials and Labor are added at the start of its production process, they will always be 100 % complete at the the end of the period as this mark is already passed. Overheads will be complete up to the extent of the work done in work in process that is 40%.
Consider the following yields to maturity on various one-year zero-coupon securities: Security: Treasury AAA Corporate BBB Corporate B Corporate Yield (%): 4.6 4.8 5.6 6.2 The price (expressed as a percentage of the face value) of a one-year, zero-coupon, corporate bond with a BBB rating is closest to:
Answer:
94.70%
Explanation:
The computation of the price expressed as a percentage of the face value is given below:
= Price ÷ Face value × 100
= (Face value ÷ (1 + YTM)) ÷ Face value × 100
= ($1,000 ÷ (1 + 5.6%)) ÷ ($1,000) × 100
= $946.97 ÷ $1,000 × 100
= 94.70%
Hence, the price expressed as a percentage of the face value is 94.70%
Here we assume the face value be $1,000
Stoneside Inc. has provided you with the following information for its Manufacturing Overhead account at the end of the period. Actual manufacturing overhead costs incurred total $31,910. The company applied manufacturing overhead cost in the amount of $28,900. What is the overapplied or underapplied manufacturing overhead
Answer:
Under applied overhead of $3,010
Explanation:
Actual manufacturing overhead
$31,910
Less:
Applied manufacturing overhead
($28,900)
Under applied overhead
$3,010
The difference between actual overhead incurred and the overhead applied is under applied or over applied manufacturing overhead.
With regards to the above, it is under applied manufacturing overhead because applied overhead is less than actual overhead.
A company uses a perpetual inventory system. The company began its fiscal year with inventory of $998,000. Purchases of merchandise on account during the year totaled $3,124,089. Merchandise costing $3,456,980 was sold on account for $6,909,879. Prepare the journal entries to record these transactions.
Answer:
Date Account Titles and Explanation Debit Credit
Inventory $3,124,089
Account payable $3,124,089
(To record purchase of merchandise inventory)
Account receivables $6,909,879
Sales revenues $6,909,879
(To record sales on account)
Cost of goods sold $3,456,980
Inventory $3,456,980
(To record the cost of sales)
[The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 43,000 $ 52,000 Work in process 10,200 21,300 Finished goods 63,000 35,600 Activities and information for May Raw materials purchases (paid with cash) 210,000 Factory payroll (paid with cash) 345,000 Factory overhead Indirect materials 15,000 Indirect labor 80,000 Other overhead costs 120,000 Sales (received in cash) 1,400,000 Predetermined overhead rate based on direct labor cost 70 % Raw materials purchases for cash. Direct materials usage. Indirect materials usage. Prepare journal entries for the above transactions for the month of May.
Answer:
Journals have been prepared below !
Explanation:
The purpose of growth accounting is to estimate the contribution each component of the aggregate production function makes to overall economic growth. estimate the growth rate of an economy. use the change in total factor productivity to estimate the growth rate of an economy. estimate the extent to which growing costs are affecting the overall performance of an economy.
Answer:
Estimate the contribution each component of the aggregate production function makes to overall economic growth
Explanation:
Growth accounting is a quantitative tool used to estimate the contribution each component of the aggregate production function makes to overall economic growth.
Growth accounting was first developed by Robert Solow.
The growth accounting equation is :
Capital Growth*(Weight of Capital's Contribution) + Labour Growth*(Weight of Labour's Contribution) + Technological Advancement
The 2017 Annual Report of Tootsie Roll Industries contains the following information.
(in millions) December 31, 2017 December 31, 2016
Total assets $930.9 $920.1
Total liabilities 197.1 208.6
Net sales 515.7 517.4
Net income 80.7 67.2
Compute the following ratios for Tootsie Roll for 2017.
(a) Asset turnover (Round answer to 3 decimal places, e.g. 0.851 times.)
(b) Return on assets (Round answer to 2 decimal places, e.g. 4.87%.)
(c) Profit margin on sales (Round answer to 2 decimal places, e.g. 4.87%.)
Answer:
1.108 times
8.66%
16%
Explanation:
A. 2017 Asset turnover
Net sales / Average total assets
= 515.7/[(930.9 + 0)/2]
= 515.7/465.45
= 1.108 times
B. Return on assets
Net income/Total assets
= 80.7/930.9
= 0.0866 × 100
= 8.669%
C. Profit margin on sales
= Net income/Net sales
= 80.7/515.7
= 0.16 × 100
= 16%
The time management skill of knowing your limits means: A. Knowing how long it will take you to accomplish a task. B. Knowing how to accomplish a lot of objectives so you do not have to cut back C. Knowing how to do everything so you never need to say no. D. All of the above
Answer:
A. Knowing how long it will take you to accomplish a task
Explanation:
Knowing your limits refers to understanding one potential and abilities. It is recognizing one's strengths and weaknesses. The time management skill of knowing your limits refers to the ability to accurately estimates how long it will take one to accomplish a specific task. It implies that an individual is fully aware of their true potential, what they can achieve, and how long it will take them to achieve it.
Answer:
The answer is A
Explanation:
An investor is in the 33 percent tax bracket and pays long-term capital gains taxes of 15 percent. What are the taxes owed (or saved in the case of losses) in the current tax year for each of the following situations?
a) Net short-term capital gains of $3,000; net long-term capital gains of $4,000
b) Net short-term capital gains of $3,000; net long-term capital losses of $4,000
c) Net short-term capital losses of $3,000; net long-term capital gains of $4,000
d) Net short-term capital gains of $3,000; net long-term capital losses of $2,000
e) Net short-term capital losses of $4,000; net long-term capital gains of $3,000
f) Net short-term capital losses of $1,000; net long-term capital losses of $1,500
g) Net short-term capital losses of $3,000; net long-term capital losses of $2,000
Answer:
The taxes owed (or saved in the case of losses) in the current tax year for each of the following situations) are:
Taxes owed Taxes saved
a. $1,590 $0
b. $0 $1,000
c. $150 $0
d. $0 $1,000
e. $0 $1,000
f. $0 $2,500
g. $0 $5,000
Explanation:
a) Data:
Investor's tax bracket = 33% (same as the short-term capital gains taxes)
Long-term capital gains taxes = 15%
b) Events and Calculations:
a) Net short-term capital gains of $3,000; net long-term capital gains of $4,000
Short-term tax = $990 ($3,000*33%)
Long-term tax = $600 ($4,000*15%)
Total taxes = $1,590
b) Net short-term capital gains of $3,000; net long-term capital losses of $4,000
Long-term capital losses = $4,000
Short-term capital gains = (3,000)
Savings = $1,000
c) Net short-term capital losses of $3,000; net long-term capital gains of $4,000
Long-term capital gains = $4,000
Short-term capital losses (3,000)
Long-term capital gains taxes = $150 ($1,000 * 15%)
d) Net short-term capital gains of $3,000; net long-term capital losses of $2,000
Short-term capital gains = $3,000
Long-term capital losses (2,000)
Savings = $1,000
e) Net short-term capital losses of $4,000; net long-term capital gains of $3,000
Short-term capital losses = $4,000
Long-term capital gains (3,000)
Savings $1,000
f) Net short-term capital losses of $1,000; net long-term capital losses of $1,500
Short-term capital losses = $1,000
Long-term capital losses 1,500
Savings = $2,500
g) Net short-term capital losses of $3,000; net long-term capital losses of $2,000
Short-term capital losses = $3,000
Long-term capital losses 2,000
Savings = $5,000
Catherine Jones has determined the following information about her own financial situation. Her checking account is worth $750 and her savings account is worth $1,900. She owns her own home that has a market value of $91,000. She has furniture and appliances worth $11,000 and a laptop worth $3,300. She has a car worth $11,500. She has recently purchased a mutual fund worth $5,500 and she has a retirement account worth $37,000. What is the total value of her assets
Answer:
$150,450
Explanation:
With regards to the above, her assets are: checking account, savings account, Home, furniture and appliances, laptop, mutual fund, car and retirement account.
= $750 + $1,900 + $91,000 + $11,000 + $3,300 + $5,500 + $37,000
= $150,450
Therefore, the total value of her asset is $150,450
How do state and federal courts differ in the United States?
Answer:The primary distinction is that state and local courts are authorized to hear cases involving the laws and citizens of their state or city, while federal courts decide lawsuits between citizens of different states, cases against the United States, and cases involving specific federal laws.
Explanation:
