Answer:
May 15, 2020
No Entry
June 15, 2020
Debit: A/R for 2,060
Credit: Revenue for 2,060
Debit: COGS for 1,350
Credit: Inventory for 1,350
July 15, 2020
Debit: Cash for 2,060
Credit: A/R for 2,060
Explanation:
Preparation of the journal entries for Cosmo related to this contract.
May 15, 2020
No Entry
June 15, 2020
Debit: A/R for 2,060
Credit: Revenue for 2,060
Debit: COGS for 1,350
Credit: Inventory for 1,350
July 15, 2020
Debit: Cash for 2,060
Credit: A/R for 2,060
On January 1, 2014, P Company purchased an 80% interest in S Company for $616,800, at which time S Company had retained earnings of $295,600 and common stock of $340,300. Any difference between book value and the value implied by the purchase price was entirely attributable to a patent with a remaining useful life of 10 years. Assume that P and S Companies reported net incomes from their independent operations of $199,900 and $95,700, respectively. Calculate the controlling interest and noncontrolling interest in consolidated net income for the year ended December 31, 2014.
Answer:
For the year ended December 31, 2014, we have:
Controlling interest in consolidated net income = $76,560
Noncontrolling interest in consolidated net income = $19,140
Explanation:
This can be calculated as follows:
Net income of S Company = $95,700
Controlling interest percentage = P Company percentage interest in S Company = 80%
Noncontrolling interest percentage = 100% - Controlling interest percentage = 100% - 80% = 20%
Therefore, we have:
Controlling interest in consolidated net income of S Company = Controlling interest percentage * Net income of S Company = 80% * $95,700 = $76,560
Noncontrolling interest in consolidated net income of S Company = Noncontrolling interest percentage * Net income of S Company = 20% * $95,700 = $19,140
Therefore, for the year ended December 31, 2014, we have:
Controlling interest in consolidated net income = $76,560
Noncontrolling interest in consolidated net income = $19,140
One year ago, Richard purchased $1,260 worth of Double GG Corporation common stock for $42 per share. During the year, Richard received two dividend payments, each equal to $.05 per share. The current market value of the stock is $44 per share. What yield did Richard earn on his investment during the year
Answer:
Yield earned by Richard on his investment during the year is 5%.
Explanation:
This can be calculated as follows:
Number of shares purchased = Worth of common stock one year ago / Price per share one year ago = $1,260 / $42 = 30 shares
Total dividend received during the year = Number of shares purchased * Dividend per share * 2 = 30 * $0.05 * 2 = $3
Current worth of common stock = Number of shares purchased * Current market value per share = 30 * $44 = $1,320
Yield earned during the year = (Current worth of common stock - Worth of common stock one year ago + Total dividend received during the year) / Worth of common stock one year ago = ($1,320 - $1,260 + $3) / $1,260 = 0.05, or 5%
Therefore, yield earned by Richard on his investment during the year is 5%.
Sansa, Cercei, and Tyrion have just finished their team's project and are waiting for their supervisor's feedback. Cercei has been mostly unengaged and quiet ever since the project started. While this was not her best work, neither was her work bad. Her mood would be categorized as Group of answer choices deactivated. negative activated. intense negative. intense positive. positive activated.
Answer:
Cercei's mood would be categorized as:
negative activated.
Explanation:
Moods do not last longer than emotions. Like Cercei's that unengaged and quiet mood during the project duration, it starts and ends within some period of time. However, a person's mood can be described as either negative or positive. Since Cercei's mood was negative from the commencement of the project to its ending, one can conclude that she activated her negative mood during the period.
Security Analysts that have evaluated Concordia Corporation, have determined that there is a 15% chance that the firm will generate earnings per share of $2.40; a 60% probability that the firm will generate earnings per share of $3.10; and a 25% probability that the firm will generate earnings per share of $3.80. What are the expected earnings per share for Concordia Corporation
Answer:
3.17
Explanation:
Expected earnings per share = (15%x2.40)+(60%x3.10)+(25%x3.80)
Paul, the Director of Recruitment at an insurance company, finds that the company has a disparate impact on the proportion of Hispanic employees compared to the proportion of Hispanics in the labor market. Which of the following steps should Paul take to solve the problem most efficiently?
a) He should lower the job specifications for Hispanic applicants.
b) He should continue using the current recruiting practices because only organizations with affirmative action plans are required to meet EEO guidelines.
c) He should start advertising for job openings on the local Spanish radio station.
d) He should freeze the hiring process until qualified Hispanics apply for vacant positions
Answer: c) He should start advertising for job openings on the local Spanish radio station.
Explanation:
This realization by Paul should make him want to hire more Hispanics into the company and the best way to do so would be to advertise it in such a way that Hispanics have a better chance of hearing about job openings.
Advertising on Spanish radio would ensure that Hispanics hear the advertisements because they are the main ethnicity that speaks Spanish. This will give them an edge in learning about job openings and enable Paul to hire more Hispanics.
In the month of March, Wildhorse Salon services 620 clients at an average price of $130. During the month, fixed costs were $16,380 and variable costs were 70% of sales
(a) Determine the total contribution margin in dollars, the per unit contribution margin, and the contribution margin ratio Contribution margin in dollars 5 Contribution margin per unit $ Contribution margin ratio %
Answer:
a) We have:
Total contribution margin in dollars = $24,180
Per unit contribution margin = $39
Contribution margin ratio = 30%
b) We have:
Break-even point in dollars = $54,600
Break-even point in in units = 420 units
Explanation:
Note: This question is not complete as its part b is missing. The part b of the question is therefore provided to complete it before answering it as follows:
b) Using the contribution margin technique, compute the break-even point in dollars and in units.
The explanation of the answer is now provided as follows:
a) Determine the total contribution margin in dollars, the per unit contribution margin, and the contribution margin ratio
Average price = $130
Variable costs = Average price * 70% = $130 * 70% = $91
Total sales = Number of clients * Average price = 620 * $130 = $80,600
Total variable cost = Total sales * 70% = $80,600 * 70% = $56,420
Therefore, we have:
Total contribution margin in dollars = Total sales - Total variable cost = $80,600 - $56,420 = $24,180
Per unit contribution margin = Average price - Variable costs = $130 - $91 = $39
Contribution margin ratio = (Total contribution margin in dollars / Total sales) * 100 = ($24,180 / $80,600) * 100 = 30%
b) Using the contribution margin technique, compute the break-even point in dollars and in units.
Break-even point in dollars = Fixed cost / Contribution margin ratio = $16,380 / 30% = $54,600
Break-even point in in units = Fixed cost / Per unit contribution margin = $16,380 / $39 = 420 units
At the end of the financial year, A & Z Travel has earned $90,000 in total sales for tours. It offered 5% a discount of total sales. All the expenses reported as: cost of goods sold of $50,000; salary & other expenses of $20,000. The company had to pay for its debts at 10% of interest rate. Tax is 20%
7. What is A & Z Travel’s net sales?
A. $90,000
B. $85,000
C. $85,500
D. $80,000
8. What is A & Z Travel’s EBIT?
A. $10,500
B. $20,000
C. $40,000
D. $35,500
9. What is A & Z Travel’s net income?
A. $7,560
B. $9,450
C. $10,500
D. $20,000
Answer:
D
Explanation:
Find the average payment period if accounts payable is $20,000, cost of goods sold is $200,000, and sales are $500,000.
Answer:
36.5
Explanation:
Account payable = $20,000
The cost of goods sold is $200,000
Sales are $500,000
The average payment period can be calculated as follows
= 20,000/200,000/365
°= 20,000/547.9
36.5
Henbe the average payment period is 36.5
Amanda is playing a game of chance in which she rolls a number cube with sides numbered from to 1 to 6. The number cube is fair, so a side is rolled at random. This game is this: Amanda rolls the number cube once. She wins $1 if a 1 is rolled, $2 if a 2 is rolled, $3 if a 3 is rolled, and 4 if a 4 is rolled. She loses $0,50 if a 4, 5 or 6 is rolled.
(a) Find the expected value of playing the game.
(b) What can Elsa expect in the long run, after playing the game many times?
1) Elsa can expect to gain money. She can expect to win__dollars per roll.
2) Elsa can expect to lose money. She can expect to lose___dollars per roll.
3) Elsa can expect to break even (neither gain nor lose money).
Answer:
a. 0.75
b. elsa can expect to gain money. 0.75$
Explanation:
x = 1/6 = 0.166667
given an outcome of 1,
1$ win * 0.166667 = 0.166667
given an outcome of 2,
$2 win * 0.166667 = 0.33333
given an outcome of 3,
$3 win*0.166667 = 0.5
remember that if she has an out come of 4, 5 and 6 she loses 0.5 dollars
given an outcome of 4,
-$0.5 * 0.166667 = -0.083333
given an outcome of 5,
-$0.5 * 0.166667 = -0.083333
given an outcome of 6,
-$0.5 * 0.166667 = -0.083333
The expected value of playing the game = 0.166667+0.333333+0.5-0.083333-0.083333-0.083333
= 0.750001
expected value of plying game = 0.75
b. in the long run, after playing the game many times, Elsa can expect to gain money. she can expect to win 0.75$ per role. option 1
Suppose that the reason the jewelry was brand new and at such a bargain price online was because the seller actually stole the jewelry. If the jewelry were stolen, what type of title would Hugo hold when he purchased the jewelry
Answer: d. Void.
Explanation:
The seller stole the jewelry and so does not hold any legal title to the jewelry in the first place. The seller cannot therefore pass something that they do not possess which means that Hugo did not get a title.
Hugo's supposed title is therefore void which means that should the real owner of the jewelry ever find out that he has it, they can simply come back and claim it without needing to pay Hugo for it.
A company receives $176, of which $16 is for sales tax. The journal entry to record the sale would include a
Answer:
Explanation:
Cash 176
Sales revenue. 160
Sales tax payable 16
During normal economic times, unemployment in Europe tends to be ________ than in the United States mainly because of ________.
Answer:
higher; labor market regulations
Explanation:
I hope this helps you!
In 2020, Susan had interest expense of $58,500 from her investments. Susan's has investment income of $46,500. Of this amount, interest is $15,000, qualified dividends are $9,000, and a net capital gain on the sale of securities is $22,500. What is the maximum amount of Susan's investment interest expense deduction for the current year if she decides to give up the capital gain preferential treatment
Answer:
Susan
The maximum amount of Susan's investment interest expense deduction for the current year if she decides to give up the capital gain preferential treatment is:
= $46,500.
Explanation:
a) Data and Calculations:
Investment interest expense = $58,500
Investment income = $46,500
Makeup of investment income:
Interest = $15,000
Dividends = $9,000
Net capital gain on the sale of securities = $22,500
b) Susan's investment interest expense is the interest amounting to $58,500 that she paid on the money she borrowed to purchase the taxable investments. The amount that Susan can deduct is capped at her net taxable investment income for the year, which totaled $46,500 since she gives up the capital gain preferential treatment. The remaining $12,000 in interest expense can be carried forward to the next fiscal year to reduce her future taxes.
Stan’s Sporting Goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net. Which statement correctly compares the two businesses?
Sabrina’s Soccer has a comparative advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower opportunity cost.
Stan’s Sporting Goods has a comparative advantage over Sabrina’s Soccer because Stan’s Sporting Goods has a lower opportunity cost.
Sabrina’s Soccer has an absolute advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower production cost.
Stan’s Sporting Goods has an absolute advantage over Sabrina’s Soccer because Stan’s Sporting Goods has a lower production cost.
Answer:
Sabrina’s Soccer has a comparative advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower opportunity cost.
Answer: A
Explanation: PogChamp
Julio purchased a stock one year ago for $27. The stock is now worth $32, and the total return to Julio for owning the stock was 37 percent. What is the dollar amount of dividends that he received for owning the stock during the year
Answer:
$5
Explanation:
Calculation to determine the dollar amount of dividends that he received for owning the stock during the year
First step is to calculate the total profit earned
Total profit=$27*37%
Total profit=$10
Second step is calculate the Value of stock with profits earned
Value of stock=$27+$10
Value of stock=$37
Now let calculate the the dollar amount of dividends
Dividend=$37-$32
Dividend=$5
Therefore the dollar amount of dividends that he received for owning the stock during the year is $5
The domestic demand (QD) for wheat in the United States is estimated to be
QDD = 1430 - 55P
where the quantity of wheat is measured in millions of bushels per year. Suppose China also demands U.S. wheat (QDC) and that its demand is given by
QDC = 2100 - 100P
What is the total demand for U.S. wheat, assuming the only two sources of demand are domestic and Chinese?
The total demand for U.S. wheat is:____.
A. QD = 3530 - 155P for all P.
B. QD = 1430 - 55P for all P.
C. QD = 3530 - 155P for P < or = to $26 and QD = 2100 - 100P for P > $26.
D. QD = 3530 - 155P for P < or = to $21 and QD = 2100 - 100P for P > $21.
E. QD = 3530 - 155P for P < or = to $21 and QD = 1430 - 55P for P > $21.
Answer:
E. QD = 3530 - 155P for P < or = to $21 and QD = 1430 - 55P for P > $21.
Explanation:
United States domestic demand function is QDD = 1430 - 55P
Demand for wheat in China is QDC = 2100 - 100P.
The total demand function for U.S. wheat will be given by function:
QD = 3530 - 155P
The Down and Out Co. just issued a dividend of $2.91 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $35 a share, what is the company's cost of equity?
Answer:
14.81%
Explanation:
Cost of equity = (Dividend for next period / Current price) + Growth rate
Cost of equity = (($2.91*1.06) / $35) + 0.06
Cost of equity = $3.0846/$35 + 0.06
Cost of equity = 0.08813143 + 0.06
Cost of equity = 0.14813143
Cost of equity = 14.81%
A spurious regression refers to a situation where:____.
a. the direction of the relationship between the dependent variable and the explanatory variables is uncertain.
b. even though two variables are independent, the OLS regression of one variable on the other indicates a relationship between them.
c. a few important and necessary explanatory variables are left out of a regression equation, thus leading to inefficient and inconsistent forecasts.
d. at least one of the variables used in a regression equation does not have a unit root and the error terms are heteroskedastic.
Answer:
b. even though two variables are independent, the OLS regression of one variable on the other indicates a relationship between them.
Explanation:
An experiment can be defined as an investigation which typically involves the process of manipulating an independent variable (the cause) in order to be able to determine or measure the dependent variable (the effect).
This ultimately implies that, an experiment can be used by scientists to show or demonstrate how a condition causes or gives rise to another i.e cause and effect, influence, behavior, etc in a sample.
In an experiment , the variable being manipulated by an experimenter is known as an independent variable while the dependent variable is the event expected to change when the independent variable is manipulated
A spurious regression refers to a situation where even though two (2) variables are independent, the ordinary least squares (OLS) regression of one independent variable on the other variable indicates a relationship between them.
An ordinary least squares (OLS) regression is typically designed to be used in estimating unknown variables or parameters in a linear regression model.
The Cavy Company accumulated
560 hours of direct labor on Job 345
800 hours of direct labor on Job 777
The direct labor incurred at a rate of:
$20 per direct labor hour for Job 345
$21 per direct labor hour for Job 777
Journalize the entry and record the flow of labor costs in production.
Answer:
Date Journal Entry Debit Credit
Work in Process $28,000
((560*$20) + (800*$21)
Wages payable $28,000
(To record the flow of labor costs in production)
A seller's opportunity cost measures the a. value of everything she must give up to produce a good. b. amount she is paid for a good minus her cost of providing it. c. out-of-pocket expenses to produce a good but not the value of her time. d. consumer surplus.
Answer:
a. value of everything she must give up to produce a good.
Explanation:
The opportunity cost of the seller determines the value of each and every thing in which the seller gives up the production of the a good in order to generating an output
So as per the given situation, the option a is correct
And, the rest of the options seems incorrect
Your company is estimated to make dividends payments of $2.4 next year, $3.4 the year after, and $4.1 in the year after that. The dividends will then grow at a constant rate of 4% per year. If the discount rate is 13% then what is the current stock price
Answer:
40.78
Explanation:
Following is information from Intel Corporation for 2016 ($ in millions). Total revenue $59,387 Projected revenue growth rate 5.0% Net operating profit margin (NOPM) 17.3% Net operating assets (NOA) $83,316 Net operating asset turnover (NOAT) 0.74 Projected net operating profit after tax (NOPAT) for 2017 is:
Answer:
the Projected net operating profit after tax (NOPAT) is $10,788
Explanation:
The computation of the Projected net operating profit after tax (NOPAT) is given below:
= Total revenue × (1 + growth rate) × net operating profit margin
= $59,387 × (1 + 0.05) × 17.3%
= $62,356.35 × 17.3%
= $10,788
Hence, the Projected net operating profit after tax (NOPAT) is $10,788
Blitz Corp. had total sales of $3,130,000 last year and has 109,000 shares of stock outstanding. The benchmark PS is 1.66 times. What stock price would you consider appropriate
Answer:
$47.68
Explanation:
Calculation to determine stock price would you consider appropriate
Using this formula
Stock price=(Total sales/Shares of stock outstanding)*Benchmark PS
Let plug to determine
Stock price=($3,130,000/109,000) ×1.66
Stock price=28.72x 1.66
Stock price= $47.68
Therefore the stock price that you would
consider Appropriate is $47.68
Moody Farms just paid a dividend of $3.95 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 14 percent for the first three years, a return of 12 percent for the next three years, and a return of 10 percent thereafter. What is the current share price
Answer:
$81.52
Explanation:
The current share price is the present value of future dividends as well as the present value of the terminal value of dividends beyond year 6 as shown thus:
Current dividend=$3.95
Year 1 dividend=$3.95*(1+5%)=$4.15
Year 2 dividend=$4.15*(1+5%)=$4.36
Year 3 dividend=$4.36*(1+5%)=$4.58
The required rate of return(discount rate) for the dividends in the FIRST 3 years above is 14%
Year 4 dividend=$4.58*(1+5%)=$4.81
Year 5 dividend=$4.81*(1+5%)=$5.05
Year 6 dividend=$5.05*(1+5%)=$5.30
The required rate of return(discount rate) for the dividends in the NEXT 3 years above is 12%
Terminal value of dividend=Year 6 dividend*(1+growth rate)/(rate of return-growth rate)
growth rate=5%
rate of return=10%(rate of return thereafter)
terminal value=$5.30*(1+5%)/(10%-5%)
terminal value=$111.30
current share price=$4.15/(1+14%)+$4.36/(1+14%)^2+$4.58/(1+14%)^3+$4.81/(1+12%)^4+$5.05/(1+12%)^5+$5.30/(1+12%)^6+$111.30/(1+10%)^6
current share price=$81.52
Suppose that when the price of hamburgers rises by 7%, the quantity of ketchup demanded at the current price of ketchup falls by 6%. When income rises by 12%, the quantity of ketchup demanded at the current price increases by 5%. Calculate the income elasticity of demand for ketchup.
Answer:
0.42
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.
If the absolute value of income elasticity of demand is less than one, it means demand is inelastic.
Income elasticity of demand = percentage change in quantity demanded / percentage change in income
5/12 = 0.42
If 2 percent growth is your break-even point for an investment project, under which outlook for the economy would you be more inclined to go ahead with the investment: (1) A forecast for economic growth that ranges from 0 to 4 percent, or (2) a forecast of 2 percent growth for sure, assuming the forecasts are equally reliable? What core principle does this illustrate?
Answer: (2) a forecast of 2 percent growth for sure, assuming the forecasts are equally reliable.
Core principle 5 - Stability improves welfare.
Explanation:
Based on the information given, I'll be more inclined to go ahead with the investment whereby there is a forecast of 2 percent growth for sure, assuming the forecasts are equally reliable.
It should be noted that when there's uncertainty about the future, it leads to the unattractiveness of investment. Here, the core principle illustrated is Core principle 5 - Stability improves welfare.
Lisa Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the year, Lisa had 85 units in ending inventory.
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.)
The cost of the ending inventory
$ FIFO
$ LIFO
$ Average-cost
The cost of goods sold
$ FIFO
$ LIFO
$ Average-cost
Answer:
Lisa Company
FIFO LIFO Average-cost
The cost of the ending inventory $11,050 $8,500 $10,200
The cost of goods sold $24,950 $27,500 $25,800
Explanation:
a) Data and Calculations:
Beginning inventory 100 units $10,000 $100
Purchase of 200 units 26,000 $130
Total units available for sale = 300 $36,000
Ending inventory - 85 units
Units sold = 215 units
Weighted-average cost per unit = $120 ($36,000/300)
FIFO:
Cost of goods sold = $24,950 ($36,000 - $11,050)
Ending inventory = $11,050 (85 * $130)
LIFO:
Cost of goods sold = $27,500 ($36,000 - $8,500)
Ending inventory = $8,500 (85 * $100)
Weighted-average:
Cost of goods sold = $25,800 (215 * $120)
Ending inventory = $10,200 (85 * $120)
The free trade pact known as Mercosur has been successful at creating a full customs union between Brazil and Argentina. True False
Answer:
The given statement is "True".
Explanation:
An agreement for reducing obstacles to exporters and importers amongst two or even more organizations is determined as Free trade pact.Commodities could be purchased as well as transferred crossing international boundaries mostly under free markets having minimal or no governmental taxes restrictions or subsidies to prevent interchange.
If there is a greater quantity supplied than the quantity demaded ( an excess supply of a good or service) you are most likely dealing with:_______.
A- price ceiling set below the equilibrium price
B- price floor set above equilibrium price
Which one is not a main question when you evaluate earnings' quality?
a. Source of revenue and persistent of revenues
b. Gross profit relationship between earnings and the market price of the common stock
c. Debt to equity ratio and total amounts of liabilities.
Answer:
Debt to equity ratio and total amounts of liabilities
Explanation:
Permanent and Temporary components of Earnings
The Permanent components of earnings may continue into future. Example is the sales revenue from regular product lines may continue in the future.
Temporary components of earnings may not continue in the future. Example is the gains or losses from the sale of equipment
Quality of Earnings
This is simply defined as any substance of earnings and their sustainability into future accounting periods.
The Quality of Earnings is influence largely by:
1. Accounting Methods: this entails all methods/means are set up/designed to match revenue and expenses.
2. Accounting estimates: this is when users of financial statement need to be aware of the impact that accounting estimates have on income.
3. One time items: this covers if and when earnings increase/decrease because of a one time items,then that portion of earnings will be sustained in the future.
Components of Earnings quality
1. Proper revenue and expense recognition
2. Declining or stable operating expenses compared to sales
3. High and persistently improving gross margin/ sales ratio etc.
The debt to equity ratio and the total amount of liabilities of a company is not important in evaluating the earnings' quality.
