Answer: $59080
Explanation:
Firstly, we need to calculate the net operating income which will be:
= $355000 - $172000 - $118000
= $65000
Then, we calculate the desired income which will be:
= $80000 × 7.40%
= $5920
Residual income will be:
= Net operating Income - Desired income
= $65000 - $5920
= $59080
Kathy Elliot has decided that she will start an internet company to sell reliable used cars to customers Nationwide she has decided to use the sole proprietorship business format. Elliot's next step is to write a formal _____ before she applies for a business loan
Answer:
business plan
Explanation:
At $180, a firm can sell 18,100 stereo earphones (3.5 mm for android). These are premium earphones, guaranteed for 5 years. At this price, elasticity is estimated at 0.6. What is the change in total revenue ( or -) if the firm drops price by 11%
Answer:
revenue falls by $167,005.08
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
When elasticity of demand is less than 1, demand is inelastic
Demand is inelastic if a small change in price has little or no effect on quantity demanded.
change in percentage demanded when price falls by 11% = 11% x 0.6 = 6.6%
Quantity demanded increases by 6.6%
Increase in quantity demanded = 18,100 x 1.066 = 19,294.60
decrease in price = 0.89 x $180 = $160.20
change in total revenue
(180 x 18,100 ) - ( $160 .20 x 19,294.60)
= 3,258,000 - 3,090,994.92
=167,005.08
Required: a. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser. Hint: Not all information may be necessary. b. Use the above information from a service company and from a merchandiser to compute net income.Kleiner Merchandising CompanyAccumulated depreciation $ 700Beginning inventory 10,000Ending Inventory 6,000Expenses 1,950Net Purchases 11,900Net Sales 19,500Krug Service CompanyExpenses $ 8,400Revenues 24,000Cash 650Prepaid rent 660Accounts payable 200Equipment 2,200
Answer:
A.
a. Good Available For Sale $21,900
b. Cost of goods sold $15,900
c. Gross profit $3,600
B. Net income for merchandise company $1650
Net income for service company $15600
Explanation:
A.Compution for gross profit, the goods available for sale, and the cost of goods sold for the merchandiser.
a. Good Available For Sale
Using this formula
Good available fro sale = Beginning inventory + Net purchase
Let plug in the formula
Good available fro sale = $10,000 + $11,900
Good available fro sale = $21,900
b. COST OF GOODS SOLD
Using this formula
Cost of goods sold = Goods available for sale - Ending inventory
Let plug in the formula
Cost of goods sold= $21,900 - $6000 =
Cost of goods sold= $15,900
c. GROSS PROFIT
Using this formula
Gross profit= Sales - COGS
Let plug in the formula
Gross profit = $19,500 - $15,900
Gross profit= $3,600
b.Computation for net income
Net income for merchandise company = Gross profit - Expenses = $3,600 - $1,950 = $1,650
Net income for service company = Revenue - Expenses = $24,000 - $8,400 = $15,600
Gabbe Industries is a division of a major corporation. Last year the division had total sales of $23,615,600, net operating income of $3,164,490, and average operating assets of $5,492,000. The company's minimum required rate of return is 19%.
Required:
a. What is the division's margin?
b. What is the division's turnover?
c. What is the division's return on investment (ROI)?
Answer:
Gabbe Industries
a. Division's margin
= 13.40%
b. Division's turnover
= 4.3x
c. Division's return on investment (ROI)
= 57.62%
Explanation:
a) Data and Calculations:
Sales = $23,615,600
Net operating income = $3,164,490
Average operating assets = $5,492,000
Minimum required rate of return = 9%
a. Division's margin =Net operating income/Sales * 100
= $3,164,490/$23,615,600 * 100
= 13.40%
b. Division's turnover = Sales/Average operating assets
= $23,615,600/$5,492,000
= 4.3x
c. Division's return on investment (ROI) = Net operating income/Average operating assets
= $3,164,490/$5,492,000 * 100
= 57.62%
Which statement in the given text points to George being an ethical leader?
George had been working as a manager in a company that ran a chain of restaurants. His company had been going through a lot of transition in the past year because they wanted to improve their public image.
George made sure that the restaurant served all the dishes that were popular in the locality.
George set up standards regarding the disposal of the restaurant’s waste products and made sure they were followed.
He also heavily advertised about the company’s food along the various highways. He also ran advertisements in national newspapers.
He set up a close-knit monitoring system in the kitchens and the service area to make sure that the quality standards were maintained.
Answer:
George set up standards regarding the disposal of the restaurant’s waste products and made sure they were followed.
Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents.$7,000 cash deposit in checking account.$28,000 bond investment due in 20 years.$7,000 U.S. Treasury bill due in 1 month.$400, 3-year loan to an employee.$1,800 of currency and coins.$700 of accounts receivable.
Answer:
the cash and cash equivalents is $15,800
Explanation:
The computation of the cash and cash equivalents is given below:
= Cash deposit + U.S. Treasury bill due in 1 month + currency and coins
= $7,000 + $7,000 + $1,800
= $15,800
hence, the cash and cash equivalents is $15,800
The same is to be considered and relevant
Match the term with its beliefs about the millenium.
a. The millennium represents the whole of the last days; we are in it now.Satan has already been defeated and bound by the death and resurrection of Christ. He is still active, but he can do nothing to thwartGod's purposes. Christians who have died already reign with Christ in heaven.
b. Christ will return before the millennium. He will raise dead Christians tolife again and they will reign with him on earth. Satan will have no power until the very end of this period when he will gather together allthose who still resist Christ's rule. They will then be destroyed in a finalbattle, and the end will come.
c. The millennium is the time immediately before the second coming: he will return after it. This "millennial age" will be a period of peace and righteousness in which more and more people will become Christians and the world will grow more godly.
1. Premillenialism
2. Postmillennialism
3. Amillennialism
Answer:
a is premillenialism
b is postmillenialism
c is amillenialism
Explanation:
for a, the answer to this question is premillinialism. this is the belief that Jesus is going to come back to this earth phsyically. It can aslo be referred to as the second coming of Jesus christ. And he would come before the millenium
1. Susie Ques Inc., a company that produces and sells a single product, has provided its contribution format income statement for October: Sales (6,200 units) $136,400 Variable expenses $80,600 Contribution margin $55,800 Field expenses $48,700 Net operating income $7,100 If the company sells 5,800 units, its total contribution margin should be how much money
Answer:
52,200
Explanation:
Calculation to determine total contribution margin
First step is to calculate the contribution margin per unit
Contribution margin per unit=($136,400/6,200 )-($80,600/6,200)
Contribution margin per unit= $22 per unit- $13 per unit
Contribution margin per unit = 9
Now let determine the total contribution margin
Total contribution margin=5,800 x 9
Total contribution margin = 52,200
Therefore total contribution margin should be $52,200
Cash equivalents by definition a.are a comparison of cash and liabilities. b.will be converted to cash within one year. c.are expected to be converted to cash within three months. d.are long-term investments.
Answer: c.are expected to be converted to cash within three months
Explanation:
Cash equivalents refers to the total value of cash on hand which consist of items that are similar to cash. It should be noted that cash equivalents are typically current assets and are expected to be converted to cash within three months.
Examples of cash equivalents include money market funds, treasury bills, Commercial paper, etc.
When purchases of merchandise are made on account with a perpetual inventory system, the transaction is recorded with which entry
Answer:
debit Merchandise Inventory, credit Accounts Payable.
Explanation:
In the case when the merchandise is purchased on account, so the following journal entry is recorded
Merchandise inventory Dr XXXXX
To account payable XXXXX
(Being merchandise inventory purchased on account)
Here merchandise inventory is debited as it increased the assets and credited the account payable as it also increased the liabilities
Following are selected accounts for a company. For each account, indicate whether it will appear on a budgeted income statement (BIS) or a budgeted balance sheet (BBS).
a. Sales …………………………………….._____
b. Administrative salaries paid….._____
c. Accumulated depreciation………._____
d. Depreciation expense………………_____
e. Interest paid on bank loan….….._____
f. Cash dividends paid…………………_____
g. Bank loan owed………………………_____
h. Cost of goods sold………………….._____
Answer:
Find the answers below
Explanation:
a. Sales ……………………………………. Budgeted Income Statement
b. Administrative salaries paid…..Budgeted Income Statement
c. Accumulated depreciation………._____ Budgeted Balance Sheet
d. Depreciation expense……………Budgeted Income Statement
e. Interest paid on bank loan….….Budgeted Income Statement
f. Cash dividends paid…………………Budgeted Income Statement
g. Bank loan owed………………………Budgeted Income Statement
h. Cost of goods sold.........Budgeted Balance Sheet
Interim financial statements:
A. Are always prepared before any adjustments have been recorded.
B. Show the liabilities above assets.
C. Cover less than one year, usually spanning one-, three-, or six-month periods.
D. Report revenues when incurred and expenses when earned
Tomlinson Packaging Corporation began business in 2018 by issuing 30,000 shares of $5 par common stock for $8 per share and 5,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2019 balance sheet, Tomlinson Packaging would report:___________
a. Common Stock of $100,000
b. Paid-In Capital of $150,000
c. Common Stock of $200,000
d. Common Stock of $160,000
Answer:
d. common stock of $150,000.
Explanation:
First and foremost, upon issuance of stocks, the common stock account would be credited with the total par value of the shares issued as shown below:
total par value=par value per share*shares issued
total par value=$5*30,000
total par value=$150,000
The paid-in capital would be credited with the total amount the cash proceeds from the share issue exceeds the total par value
total cash proceeds=$8*30,000
total cash proceeds=$240,000
paid-in capital=$240,000-$150,000
paid-in capital=$90,000
The correct option is the common stock of $150,00, except that the number of shares issued is 20,000,hence, the common stock of $100,000 would be correct
Check a similar question below to drive home my point:
Kerwin Packaging Corporation began business in 2010 by issuing 30,000 shares of $5 par common stock for $8 per share and 10,000 shares of 6%, $10 par preferred stock for par. At year-end, the common stock had a market value of $10. On its December 31, 2011 balance sheet, Kerwin Packaging would report:
a. common stock of $300,000.
b. paid-in capital of $150,000.
c. common stock of $240,000.
d. common stock of $150,000.
L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $8,000. The capital balances of each partner are $96,000 and $40,000, respectively, prior to the revaluation.
a. Provide the journal entry for the asset revaluation.
b. Provide the journal entry for Ortiz’s admission under the following independent situations:
1. Ortiz purchased a 20% interest for $20,000.
2. Ortiz purchased a 30% interest for $60,000.
Answer: See attachment and explanation
Explanation:
1. Ortiz purchased a 20% interest for $20,000.
Total capital after the admission of the partner will be:
= ($96000 - $4000) + ($40000 - $4000) + $20000
= $92000 + $36000 + $20000
= $148000
The share of new partner in the capital structure will be:
= Total capital × Interest of new partner
= $148000 × 20%
= $29600
There'll be a deficiency in the profit which the existing partner contributes to and this will be:
= $29600 - $20000
= $9600
Then each partner shares =$9600/2 = $4800
2. Ortiz purchased a 30% interest for $60,000.
Total capital after the admission of the partner will be:
= ($96000 - $4000) + ($40000 - $4000) + $60000
= $92000 + $36000 + $60000
= $188000
The share of new partner in the capital structure will be:
= Total capital × Interest of new partner
= $188000 × 30%
= $56400
Since the share is less than the amount of $60000 bought in, the existing partner will be compensated in the amount of ($60000 - $56400) = $3600. Therefore each partner gets $3600/2 = $1800
Check attachment for the journal entries.
Which of the following considerations is related to sociocultural environment
Answer:
You didn't provide anything for me to choose from, so I can't give you an answer.
Casino Inc. is expected to pay a dividend of $3 per share at the end of year-1 (D1) and these dividends are expected to grow at a constant rate of 6% per year forever. If the required rate of return on the stock is 18%, what is current value of the stock today
Answer:
$25
Explanation:
Calculation to determine what is current value of the stock today
Using this formula
P0= Div1/(r - g)
Let plug in the formula
P0= (3/(0.18 - 0.06))
P0= $25
Therefore current value of the stock today is $25
You are considering two mutually exclusive projects. Project A costs $3.6 million, has a required return of 14.5 percent, and an IRR of 14.3 percent. Project B costs $4.1 million, has a required return of 16 percent, and an IRR of 15.6 percent. Which project(s) should be accepted
Answer:
Neither
Explanation:
The internal rate of return is a capital budgeting method that is used to determine the profitability of a project.
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
The decision rule when using the internal rate of return is to undertake the project if the internal rate of return is greater than the required return of the project. If this is not met, the project should be rejected.
If choosing between multiple projects, the decision rule is to choose the projects with the highest internal rate of return. This is because that project would be the most profitable.
Neither of the project should be selected because the IRR of both projects is less than their required returns
Silky Smooth has an EPS of $2.93 per share and a profit margin of 6.3 percent. If the Price to Sales ratio of the industry is 1.56 times, what is a good estimate for Solky Smooth's stock price
Answer:
$88.16
Explanation:
The computation of the estimation of the stock price is given below:
Net profit ÷ sales = 6.3%
And,
Net profit ÷ Number of shares = $2.93
So,
6.3% of sales ÷ Number of shares = $2.93
Sales ÷ Number of shares = 46.51
Now PS ratio is = Price ÷ sales
= 1.56 × 46.51
= $88.16
g A monopoly is a market that has Group of answer choices Only one buyer. Only one seller. Many sellers who sell differentiated products. Many sellers who sell identical products.
Answer:
Only one seller.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller (one seller) who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.
Also, a monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.
For example, a public power supply company is an example of a monopoly because it serve as the only source of power supply to the general public in a society.
A public power company refers to a company that provides power (electricity) utility to the general public of a society.
In conclusion, a monopoly is a market that has only one seller.
1. The journal entry to recognize depreciation on machinery would include a debit to Factory Overhead. debit to Accumulated Depreciation. credit to Factory Overhead. None of these choices are correct. 2. The journal entry to record the transfer from work in process to finished goods would include a debit to Work in Process. Finished Goods. Cost of Goods Sold. None of these choices are correct.
Answer:
1. The journal entry to recognize depreciation on machinery would include
= None of these choices are correct.
2. The journal entry to record the transfer fro work in process to finished goods would include a debit to
= Finished Goods.
Explanation:
a) The correct journal entry is a debt to Depreciation on Machinery and a credit to Accumulated Depreciation on Machinery. However, when the Depreciation is being transferred to Work in Process, the debit goes to Work in Process with the credit going to the Depreciation on Machinery account.
b) The corresponding credit entry is a credit to Work in Process.
You wish to sell short 100 shares of XYZ corporation stock. If the last two transactions were at $34.10 followed by $34.15, you only can sell short on teh next transaction at a price of
Answer: b. 34.15 or higher
Explanation:
Short sales refer to the sale of borrowed stocks in anticipation that the stock price of the underlying stock will fall. This will then enable you to make a profit by buying the cheaper shares and giving it back to the entity you borrowed from thereby making a profit.
With short sales, the price is usually upward trending so will normally increase from the last price. As the last price here was $34.15, that would be the likely minimum for the next sale.
This means that the next sale will either be at a price of $34.15 or a price higher than that.
The cost to produce was $20 per unit in 2019. During 2020, it has increased to $23 per unit. In 2020, Supplier Company has offered to supply for $18 per unit. For the make-or-buy decision:_____.a. incremental costs are $2 per unit.
b. differential costs are $7 per unit.
c. net relevant costs are $2 per unit.
d. incremental revenues are $7 per unit.
Answer: Differential cost is $5 per unit
Explanation:
Differential cost is the extra cost that the company would incur if they made the product themselves versus if they bought it from an outside supplier.
Differential cost is therefore:
= Cost to produce internally - Cost from supplier
= 23 - 18
= $5
likely
In the short run, fixed costs: Group of answer choices are an important feature in a firm's decision to produce or not produce. have no impact on a firm's profit level. remain constant. do not exist.
Answer:
remain constant.
Explanation:
The short run is a period where all factors of production are fixed. In the short run, a firm would continue to produce if price is above average variable cost. If this is not the case, it would shut down
The long run is a period where all factors of production are varied. It is known as the planning time for a company
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
Loger's, a high-end apparel company in Bruslon, an Asian country, cuts back on production as consumers start turning to basic products such as food because of the economic downturn in the country. The company also lays off many of its employees to further cut down expenses. In the context of the business cycle, Bruslon is most likely going through a period of _____.
a. economic expansionb. economic integration
c. economic recovery
d. economic contraction
Answer:
d. economic contraction
Explanation:
Contraction is in economics means it is business cycle phase where the overall economu should be fall. Also the contraction should arise when the cycle of the business is in peak but it should be prior to became as a trough
So at the time of economic contraction, the company normally took the measures of the cost cutting
So as per the given situation, the option d is correct
On July 1, 2021, Clearwater Inc. purchased 9,300 shares of the outstanding common stock of Mountain Corporation at a cost of $213,000. Clearwater will have significant influence over the financial and operating policies of Mountain. Mountain had 31,000 shares of outstanding common stock. Assume the total book value and fair value of identifiable net assets is $660,000. Both companies have a January through December fiscal year. The following data pertains to Mountain Corporation during 2021:
Dividends declared and paid, Jan. 1–June 30 $11,700
Dividends declared and paid, Jul. 1–Dec. 31 $11,700
Net Income, January 1–June 30 $13,700
Net Income, July 1–December 31 $17,700
Required:
a. Prepare the entry to record the original investment in Mountain.
b. Compute the goodwill (if any) on the acquisition.
c. Prepare the necessary entries (other than acquisition) for 2021 under the equity method.
Answer and Explanation:
1. The journal entry is given below:
Investment in Mountain $213,000
To Cash $213,000
(Being the original investment is recorded)
Here the investment is debited as it increased the assets and credited the cash as it decreased the assets
2.
The goodwill is
Purchase price $213,000
Less : Fair value of assets purchased (30%of $660,000) $198,000
Goodwill Purchased (difference) $15,000
3.
Cash (30% × $11,700) $3,510
To Investment in Mountain $3,510
(being cash is recorded)
Investment in Mountain (30% 17,700) $5,310
To Investment Revenue $5,310
(Being investment is recorded)
Assume banks are required to hold reserves equal to 20 percent of deposits. Instructions: Enter your responses as a whole number. a. How much excess reserves does the bank hold
Answer: $100
Explanation:
If the reserve requirement is 20% then the required reserves being held by the company is:
= Total deposits * reserve requirement
= 8,000 * 20%
= $1,600
The reserves held by the company of $1,700 comprise of both the required reserves and the excess reserves. The excess reserves will therefore be calculated as:
Excess reserves = Reserves - Required reserves
= 1,700 - 1,600
= $100
A monopolist desiring to increase its profit has just discovered that lowering its price and selling more output yielded the desired result. Profit increased. Based on this, one can conclude that the marginal cost of production is _____ the marginal revenue from production.
Answer:
Less than
Explanation:
The marginal cost of production is that change in the total production cost when an extra unit is produced. While the Marginal revenue from production is the additional profit realized from production due to the sale of an extra unit.
Generally, When, the marginal cost is less than the marginal revenue, the company's production is low and should increase its output to maximize profit.
A monopolist has to its price in order to sell due to marginal revenue not equalling to price, the monopolist maximizes profits by ensuring its marginal revenue and its marginal cost are the same. Producing when Price is greater than marginal cost makes a monopolist realize profits.
A potential investor in Cristian's company wants to know how much money was paid in dividends in the last reporting period. What type of financial statement should he look at?
A. Statement of changes in equity
B. Balance sheet
C. Cash flow statement
D. Income statement
Answer:
A. Statement of changes in equity
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Basically, the type of financial statement a potential investor should look at is the statement of changes in equity.
The statement of changes in equity provides an information about the reconciliation of the opening and closing balances of equity with respect to a company at a specific period of time.
Kamal made a scale drawing of a house. The scale of the drawing was 7 inches : 3 feet. A rug in the hallway is 6 feet long in real life. How long is the rug in the drawing?
Answer:
14 inches
Explanation:
Given that :
Scale drawing ; 7 inches = 3 feets ;
This means that 7 inches on the drawing equals 3 feets in real life
With this, we can calculate the length of scale drawing for 1 feet long object.
7 inches = 3 feets
x = 1 feet
Cross multiply :
3x = 7
x = 7/3 inches
Therefore, for a 6 feet long rug in real life, the length of drawing will be :
1 Feet = 7/3 inches
6 feets = (7/3 * 6) inches
(7/3 * 6) = 42 / 3 = 14 inches
83) Suppose in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies. a. What is the opportunity cost of producing an auto body for the United States
Answer:
Opportunity cost = 0.25 motor engine
Explanation:
Below is the given value:
In the U.S. ,Opportunity cost of 1 motor engine = 4 auto bodies
In the Canada, Opportunity cost 1 motor engine = 2 auto bodies
Below is the calculation for opportunity cost pf 1 auto body in the U.S.
Opportunity cost = Motor engine / Auto body
Opportunity cost = 1 / 4
Opportunity cost = 0.25 motor engine
