On September 1, Year 1, Gomez Company collected $9,000 in advance from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would the company report as net cash flows from operating activities for Year 1?

Answers

Answer 1

Answer:

$3,000 and $9,000

Explanation:

In the income statement only four months revenue is recorded i.e from September 1 to December 31      

= $9,000 × 4 months ÷ 12 months

= $3,000

And, under the operating activities the whole amount i.e $9,000 is to be recorded and added to the net income as it is inflow of cash and the same is added using the direct method of the cash flow statements


Related Questions

The reported net incomes for the first 2 years of Sandra Gustafson Products, Inc., were as follows: 2014, $147,000; 2015, $185,000. Early in 2016, the following errors were discovered.

1. Depreciation of equipment for 2014 was overstated $17,000.
2. Depreciation of equipment for 2015 was understated $38,500.
3. December 31, 2014, inventory was understated $50,000.
4. December 31, 2015, inventory was overstated $16,200.

Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed. (Ignore income tax considerations.)

Answers

Answer:

Debit 2016 Beginning retained earning for $37,700;

Credit Accumulated depreciation for $21,500, and

Credit Inventory for $16,200.

Explanation:

The entries will affect the 2016 beginning Retained earning except for the December 31, 2014 inventory which was understated by $50,000 which was a self correcting error at the end of 2015.  

Accumulated depreciation = Understatement of 2015 depreciation - Overstatement of 2014 depreciation = $38,500 - 17,000 = $21,500

The entries will affect the 2016 beginning retained earning as follows:

Details                                                         Dr ($)                  Cr ($)

Beginning retained earning                     37,700

Accumulated depreciation                                                21,500

Inventory - 2015 Overstatement                                       16,200

To correct the error discovered in the accounts.                             .

Which law is referred to as the credit cardholders Bill Of Rights ?

Answers

Answer: credit CARD act

Hope this helps!!!

A) Fair and Accurate Credit Transaction Act

Which of the following activities of the central bank do not constitute monetary​ policy? A. Monitoring key stock prices. B. Monitoring financial institutions. C. Controlling certain key interest rates. D. Indirectly controlling the money supply. The​ Fed's dual mandate includes maintaining ▼ low and predictable levels of inflation maximum and sustainable levels of money supply maximum and sustainable levels of unemployment . The Fed engages in different types of activities to achieve its dual mandate. In the following​ examples, identify the type of activity being carried out by the Fed. Example Activity The Fed transfers​ $1 million from Santander​ Bank's reserves​ (on deposit at the​ Fed) to Deutsche​ Bank's reserves when​ Alice, a customer of Deutsche​ Bank, goes to clear a check written to her by​ April, a customer of Santander Bank. ▼ Regulation Management of macroeconomic fluctuations Management of interbank transfers The Fed increases the quantity of bank reserves to stimulate the economy by increasing inflation and lowering unemployment. ▼ Management of interbank transfers Management of macroeconomic fluctuations Regulation The Fed fails Morgan Stanley in its stress test and orders the bank to improve its balance sheet by adding more capital. ▼ Regulation Management of interbank transfers Management of macroeconomic fluctuations Click to select your answer.

Answers

Answer: Please refer to Explanation

Explanation:

1. A. Monitoring key stock prices.

This does not fall under what the Central Bank does when Monetary Policy is implemented. Monetary Policy allows the government to influence interest rates, monitor financial institutions and indirectly control money supply.

2. Low and predictable levels of inflation.

Under the mandate of PRICE STABILITY, the Fed aims to ensure low and Predictable inflation in the long run to preserve the purchasing power of money.

3. Management of interbank transfers.

The Fed monitors and manages Interbank transfers to protect the financial system.

4. Management of Macroeconomic fluctuations.

- The Fed just embarked on monetary policy to correct the Economy. This was a Macro Economic function as it dealt with the entire economy as a whole.

5. Regulation

The Fed acts as the regulator of Banks and ensures that they follow certain practices and rules to ensure the safety of the banking system and the money belonging to the people who put it there.

Income statement _______ Click on an event in any transaction report b. Balance sheet _______ Click an account on any report c. Statement of cash flows _______ Click to add a new column in a report d. AR aging report _______ Reflects unpaid bills for the current period e. AP aging report _______ Reports revenues and expenses f. Inventory valuation report _______ Includes operating, investing, and financing activities g. Profit and Loss report _______ Reports inventory quantities on hand h. To view a transaction report _______ Reports assets, liabilities, and equities i. To view a source document _______ Another name for the income statement j. % of income check box _______ Reflects unpaid invoices for the current period

Answers

Answer and Explanation:

a Income statement = Reports revenues and expenses

The income statement only records the revenues earned and expenses incurred

b Balance sheet = Reports Assets, liabilities and Equities

The balance sheet records the 3 items i.e assets, liabilities and stockholder equity

With the help of the accounting equation, the balance sheet should be matched

c Statement of Cash flows = Includes operating, Investing & Financing

The cash flow statement consist of operating activities, investing activities, and financing activities. It records only cash payments and cash receipts transactions

d AR Aging Report= Reflects unpaid invoices for current period

It shows the invoices which are not paid

e AP Aging Report  = Reflect unpaid bills for current period

It shows the bills which are not paid

f Inventory valuation report = Reports Inventory Quantities on hand

It shows the quantities of inventory remains on till date

g Profit and loss report = Another name for Income statement

The other name of income statement is profit and loss account or report

h To view a transaction report = Click an account on any report

For seeing the transaction report we have to just click on any report

i To view a source document = Click on an event in any transaction report

For seeing the source document we have to just click on the event of any transaction report

j % of income check box = Click to add a new column in a report

For percentage of income check box we need to add a new column in a report

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 72,000 Direct labor $ 36,500 Variable manufacturing overhead $ 16,200 Fixed manufacturing overhead 28,900 Total manufacturing overhead $ 45,100 Variable selling expense $ 12,600 Fixed selling expense 19,200 Total selling expense $ 31,800 Variable administrative expense $ 4,300 Fixed administrative expense 25,600 Total administrative expense $ 29,900 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost

Answers

Answer:

Product cost= $153,600

Explanation:

Giving the following information:

Direct materials $ 72,000

Direct labor $ 36,500

Variable manufacturing overhead $16,200

Fixed manufacturing overhead 28,900

Total manufacturing overhead $ 45,100

The product cost is the sum of direct material, direct labor, and total manufacturing overhead.

Product cost= 72,000 + 36,500 + 45,100

Product cost= $153,600

ImpressMe Products embosses notebooks with school and corporate logos. Last year, the company’s direct labor payroll totaled $352,100 for 50,300 direct labor hours. The standard wage rate is $6.75 per direct labor hour. Calculate ImpressMe’s direct labor rate variance. (Round answer to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Answers

Answer:

Direct labor rate variance= $12,575 unfavorable

Explanation:

Giving the following information:

Last year, the company’s direct labor payroll totaled $352,100 for 50,300 direct labor hours. The standard wage rate is $6.75 per direct labor hour.

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 352,100/50,300= $7 per hour

Direct labor rate variance= (6.75 - 7)*50,300

Direct labor rate variance= $12,575 unfavorable

Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $68,000 and $3,450, respectively. During Year 2, Allegheny wrote off $6,300 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $5,400. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement

Answers

Answer:

$8,250

Explanation:

Relevant data provided for compute the Uncollectible Accounts Expense is here below:-

Amount written off = $6,300

Closing balance = $5,400

Opening balance = $3,450

The computation of Uncollectible Accounts Expense is shown below:-

Uncollectible Accounts Expense = Amount written off + Closing balance - Opening balance

= $6,300 + $5,400 - $3,450

= $11,700 - $3,450

= $8,250

Therefore for computing the Uncollectible Accounts Expense we simply applied the above formula.

Why do more than half of enterprise application projects exceed budgets, deliver less than expected benefits, or experience overruns?

Answers

Answer: The answer is provided below

Explanation:

1. Underfinancing: One main reason that cause budget overrun and less than expected benefits is underfinancing. Allocation of an adequate amount of budget to project at the beginning will lead to a budget overrun or failure.

2. Unfeasible Cost Estimates: Estimation of cost is a vital process in a project and another common reason for budget overrun. When the cost is calculated by inexperienced or unqualified personnel, the project is going to face budget overruns.

3. Underestimating the Project Complexity: Big projects are usually at the risk of overrunning its budget as a result of bigger complications that may arise during its execution.

4. Lack of Resource Planning: When one fails to plan the resources that are available effectively, then this would lead to a budget overrun and less benefits. A common mistakes that cause overrun is failure to estimate the resources which would be utilized during the project.

If a firm has retained earnings of $2.7 million, a common shares account of $4.7 million, and additional paid-in capital of $9.4 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity.

Answers

Answer:

Change in retained earnings = $1.02 million (Decrease)

Change in common shares account = $5.17 million (Increase)

Change in additional paid-in capital = $10.61 million (Increase)

Explanation:

Given:

Retained earnings = $2.7 million

Common shares account = $4.7 million

Additional paid-in capital = $9.4 million

Stock dividend = 10%

Find:

Changes in account.

Computation:

1. Change in retained earnings

Change in retained earnings = Retained earnings - (Retained earnings - Common shares account - Additional paid-in capital)Stock dividend

Change in retained earnings = $2.7 million - ($2.7 million - $4.7 million - $9.4 million)10%

Change in retained earnings = $2.7 million - 1.68 million

Change in retained earnings = $1.02 million (Decrease)

2. Change in common shares account

Change in common shares account = Common shares account (1+Stock dividend)

Change in common shares account = $4.7 million (1+10%)

Change in common shares account = $5.17 million (Increase)

3. Change in additional paid-in capital

Change in additional paid-in capital = Additional paid-in capital + (Additional paid-in capital + Retained earnings)Stock dividend

Change in additional paid-in capital = $9.4 million + ($9.4 million + $2.7 million)10%

Change in additional paid-in capital = $9.4 million + 1.21 million

Change in additional paid-in capital = $10.61 million (Increase)

On April 1, 2017, Pharoah Company issued $990,000 of 12%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1. Prepare journal entries to record the following. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) (a) The issuance of the bonds. (b) The payment of interest on July 1. (c) The accrual of interest on December 31.

Answers

Answer:

(a)

April 1, 2017

Dr. Cash                $990,000

Cr. Bond Payable $990,000

(b)

July 1, 2017

Dr. Interest Expense $59,400

Cr. Cash                     $59,400

(c)

December 31, 2017

Dr. Interest Expense                 $59,400

Cr. Interest on Bond Payable   $59,400

Explanation:

Bond issued is a liability as company receives cash against the issuance of bond which will be repaid on a specific time.

Interest is calculated using Face value and coupon ate of the bond. As the interest is being paid semiannually, so interest expense will be as follow after each 6 months.

Interest Expense = $990,000 x 12% x 6/12 = $59,400

As the payment of the loan will be made on January 1, So on December 31 at the year end interest expense accrual is recorded according to the accrual concept of accounting. A liability of Interest on Bond Payable is arose and it will be paid on January 1.

Evaluate the statement “Accounting is all about numbers.". Using the definition of accounting to justify your answer.​

Answers

Explanation:

Accounting is not all about numbers. For accounting is characterized as the entire process of recording financial transactions of an organization.

Some of the accounting activities are the summary and analysis of accounting information to economic entities, as well as communicating non-financial information such as those that can impact people and the environment.

Hardware is adding a new product line that will require an investment of $ 1 comma 476 comma 000. Managers estimate that this investment will have a​ 10-year life and generate net cash inflows of $ 300 comma 000 the first​ year, $ 290 comma 000 the second​ year, and $ 240 comma 000 each year thereafter for eight years. Assume the project has no residual value. Compute the ARR for the investment. Round to two places

Answers

Answer:

42,51%

Explanation:

Accounting Rate of Return (ARR) = Average Profits / Average Investment

Calculation of Average Profits

Average Profit = Sum of Profits / Number of Years

                        = (300,000+290,000+240,000×8)/10

                        = $2,510,000 / 8

                        = $313,750

Calculation of Average Investment

Average Investment = Initial Investment + Scrape Value / 2

                                  = $1,476,000/2

                                  = $738,000

Accounting Rate of Return (ARR) = $313,750/$738,000×100

                                                      = 42,51%

Select a publicly traded firm of your choice that enjoys a large shareholder base. What challenges may this firm have encountered (or is likely to encounter) in terms of (a) incorporating ethics into financial management practices, and (b) maintaining/sustaining ethical practices in the face of internal or external (market) pressures? Frame your response relative to the financial manager's fiduciary duty to maximize shareholder's wealth.

Answers

Answer: The answer is provided below

Explanation:

The publicly traded firm of my choice is Amazon.

a. Amazon would in its initial phase have encountered challenges as a result of the inculcating of financial management practises. At the beginning, the founders and the employees may not be willing to disclose all the profits on their books of accounts.

Also, the use of debt might not be taken as a healthy sign at the beginning. The preparation of statement of position might not be taken seriously and the internal control mechanisms will have been challenging to put up and also keep accountability.

b. It would have been really difficult for managers to sustain best practises during pressures. Also, stakeholders due to their personal goals might not allow finance manager to independently work. The pressure to exhibit certain level of sales or profit may also be there.

Furthermore, the lagging or leading of expenses might be done to show

lesser or higher profit. A materially price sensitive information might not be disclosed or reported. Finally, the extent of any loss might also not be reported as a result of internal pressures.

Grape Inc. uses the percentage of credit sales method of estimating doubtful accounts. The Allowance for Doubtful Accounts has an unadjusted credit balance of $3,500 and the company had $180,000 of net credit sales during the period. Grape has experienced bad debt losses of 4% of credit sales in prior periods. After making the adjusting entry for estimated bad debts, what is the ending balance in the Allowance for Doubtful Accounts accou

Answers

Answer:

$9,700

Explanation:

The calculation of ending balance in the Allowance for Doubtful Accounts account is shown below:-

Ending balance in the Allowance for Doubtful Accounts account = Net credit sales × Credit sales percentage + Credit balance

= $180,000 × 4% + $2,500

= $7,200 + $2,500

= $9,700

So, for computing the ending balance in the Allowance for Doubtful Accounts account we simply applied the above formula.

Suppose that the standard deviation of monthly changes in the price of commodity A is $2. The standard deviation of monthly changes in a futures price for a contract on commodity B (which is similar to commodity A) is $3. The correlation between the futures price and the commodity price is 0.9. What hedge ratio should be used when hedging a one month exposure to the price of commodity A

Answers

Answer:

0.6

Explanation:

Correlation r = 0.9,

Standard deviation of monthly change in price of commodity A, σA = 2,

Standard deviation of monthly change in price of commodity B, σB = 3

The hedge ratio will be calculated using the formula

Hedge ratio=r×σA÷σB

Hedge ratio=0.9×2÷3

Hedge ratio = 0.6

Therefore, the hedge ratio used when hedging a one month exposure to the price of commodity A is 0.6.

Goodmark Company produces two types of birthday cards: scented and regular. Expected product data for the coming year are given below. Overhead costs are identified by activity.

Scented Cards Regular Cards Total
Units produced 20,000 200,000 -
Prime costs $160,000 $1,500,000 $1,660,000
Direct labor hours 20,000 160,000 180,000
Number of setups 60 40 100
Machine hours 10,000 80,000 90,000
Inspection hours 2,000 16,000 18,000
Number of moves 180 120 300

Overhead costs:
Setting up equipment $240,000
Moving materials 120,000
Machine 200,000
Inspecting products 160,000

Calculate the activity consumption ratios for Scented cards (round to two decimal places).
Setups:
Moving materials:
Machining:
Inspection:

Answers

Answer:

Setups: $ 144,000

Moving materials: $72000

Machining: $22,200

Inspection:  $17,777.78

Explanation:

Goodmark Company

                Scented Cards        Regular Cards             Total

Units produced 20,000             200,000 -

Prime costs    $160,000        $1,500,000               $1,660,000

Direct labor hours 20,000       160,000                     180,000

Number of setups 60                   40                                 100

Machine hours        10,000         80,000                      90,000

Inspection hours      2,000         16,000                         18,000

Number of moves      180             120                              300

First we find the rate by dividing the overhead costs with the corresponding cost driver as follows.

Overhead costs:                               Rate

Setting up equipment $240,000 = Setting up equipment / Number of setups=$240,000/100=2400

Moving materials 120,000   =   Moving materials/Number of moves

                                               120,000/300=400

Machine 200,000         =   Machining/Machine hours    

                                        =  200,000/ 90,000=2.222

Inspecting   160,000  =  Inspection/Inspection hours

                                        = 160,000/18000= 8.89

Now we find the overhead applied to the scented cards by multiplying the rate to the  corresponding overhead activity of the scented cards.

Activity                        Rate                Scented Cards

Setups:                        2400                   2400*60=$ 144,000

Moving materials:       400                    400*180= $72000

Machining:                    2.22                  2.22*10,000=$22,200

Inspection:                   8.89                  8.89*2000= $17,777.78

All of the following are correct statements about transfers between divisions located in countries with different tax rates except that

A. differences in tax rates across countries complicate the determination of the appro-priate transfer price
B. a decreasing number of transfers are between divisions located in different countries
C. companies must pay income tax in the country where income is generated
D. many companies prefer to report more income in countries with low tax rates.

Answers

I think it’s A .................

All of the following are correct statements about transfers between divisions located in countries with different tax rates except that the companies must pay income tax in the country where income is generated. Thus option (C) is correct.

What is tax?

Taxes are mandatory contributions levied on individuals or corporations by a government entity—whether local, regional, or national.

Tax revenues finance government activities, including public works and services such as roads and schools, or programs such as Social Security and Medicare.

In economics, taxes fall on whoever pays the burden of the tax, whether this is the entity being taxed, such as a business, or the end consumers of the business’s goods.

From an accounting perspective, there are various taxes to consider, including payroll taxes, federal and state income taxes, and sales taxes.

Learn more about tax here:

https://brainly.com/question/16423331

#SPJ5

Crane Company required production for June is 112000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 290000 and 310000 pounds, respectively. How many pounds of direct material Z must be purchased

Answers

Answer:

Purchases= 356,000 pounds

Explanation:

Giving the following information:

Production= 112,000 units.

Standard quantity= 3 pounds of direct material Z

Beginning inventory= 290,000 pounds

Desired ending inventory= 310,000 pounds

To calculate the purchase required for direct material, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 112,000*3 + 310,000 - 290,000

Purchases= 356,000 pounds

Four employees received feedback from their managers. Jose was told what he did wrong and was given a warning. Jolette was told that she has been too shy in team meetings and is not speaking enough. Richard was told that his unique skill of analysis has been very valuable to the team. Gloria was told about some errors she made on the reports the team produced. Who will most likely feel highly engaged and be more productive?

Answers

Answer:

 Richard

Explanation:

In simple words, Among all the employees in the organisation only Richard got the appreciation for the work he is performing. Such appreciation would work as an incentive for Richard to perform his duty with more effectiveness in the future.  

Positive comments from the employer always works as a motivation to the employees and results in positive reinforcement of such employee which further results in better results.

How long do foodbourne illnesses last

Answers

Answer:

5-7 days

Explanation:

Immune-comprised individuals may experience a more serious illness. Severe diarrhea (often bloody diarrhea), abdominal cramps, and vomiting. Usually little or no fever. Can begin 2 to 8 days, but usually 3-4 days after consumption of contaminated food or water and last about 5 to 7 days depending on severity.

Answer:

about a week

Explanation:

Can begin 2 to 8 days, but usually 3-4 days after consumption of contaminated food or water and last about 5 to 7 days depending on severity.

Fultz Company has accumulated the following budget data for the year 2020.

1. Sales: 31,410 units, unit selling price $85.
2. Cost of one unit of finished goods: direct materials 1 pound at $6 per pound, direct labor 3 hours at $12 per hour, and manufacturing overhead $7 per direct labor hour.
3. Inventories (raw materials only): beginning, 10,120 pounds; ending, 15,480 pounds.
4. Selling and administrative expenses: $170,000; interest expense: $30,000.
5. Income taxes: 30% of income before income taxes.

Prepare a schedule showing the computation of cost of goods sold for 2020.

Answers

Answer:

COST OF Goods SOLD $ 1,1539,110

Explanation:

Fultz Company

Schedule  of Cost of Goods Sold for 2020

As there are no beginning and ending finished goods inventories the total units produced are sold. (Finished Goods   required       31410  Units)

Inventories raw materials : beginning, 10,120 pounds

Add Direct Materials Purchases 36770 pounds

Less Inventories ending raw materials , 15,480 pounds

Direct Materials Used 31410 pounds

Materials 1 pound at $6 per pound= $ 6*  31410  Units=  $ 188460

Direct labor 3 hours at $12 per hour= $ 36*  31410  Units= $ 1130780

Manufacturing Overhead $7 per direct labor hour= $ 7*  31410  Units=

                                                                                             $ 219870

Total Manufacturing Costs  $ 1,1539,110

There are no beginning and ending work in process inventories so the total manufacturing cost gives us the COST OF Goods SOLD.

For the year ended December 31, 2016, Norstar Industries reported net income of $655,000. At January 1, 2016, the company had 900,000 common shares outstanding. The following changes in the number of shares occurred during 2016: Apr. 30 Sold 60,000 shares in a public offering. May 24 Declared and distributed a 5% stock dividend. June 1 Issued 72,000 shares as part of the consideration for the purchase of assets from a subsidiary. Required: Compute Norstar's earnings per share for the year ended December 31, 2016.

Answers

Answer:

1.272 per share

Explanation:

The computation of earnings per share is shown below:-

Weighted Average number of Common shares outstanding = outstanding common shares ÷ Net income

= 900,000 ÷ $707,810

= 1.272 per share

Where,

Net Income = Preferred Dividends ÷ Weighted Average number of Common shares outstanding

= $655,000 ÷ (1 + 0.05) + ( 60,000 × 8 months ÷ 12 months) × 1.05 + (72,000 × 7 months ÷ 12 months)

= $623,810 + 40,000 × 1.05 + 42,000

= $623,810 + 42,000 + 42,000

= 707,810

Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Cafeteria Services has costs of $255,000 and Maintenance has costs of $175,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are: Cafeteria Services 4 Maintenance 5 Assembly Department 10 Packaging Department 10

Answers

Answer:

The Total allocation of maintenance cost of packaging department is $87,500

Explanation:

According to the given data we have the following:

The Total Maintenance cost is $175,000 before allocation.

Total employees of in Production Department is=  10 Assembly + 10 Packaging= 20

Hence, Total maintenance cost per employee = $175,000 / 20

Total maintenance cost per employee =$8,750

                                                       

Therefore, the Total allocation of maintenance cost of packaging department= Total maintenance cost per employee× Employees Packaging Department

Total allocation of maintenance cost of packaging department=$ 8,750 X 10 employees= $87,500

Exercise 4-20 (Algo) Statement of cash flows; indirect method [LO4-8] Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $ 15,500 Operating expenses: Cost of goods sold $ 5,100 Depreciation expense 410 Insurance expense 950 General and administrative expense 3,500 Total operating expenses 9,960 Income before income taxes 5,540 Income tax expense (2,216 ) Net income $ 3,324 Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash $ 640 $ 370 Accounts receivable 835 1,000 Inventory 825 770 Prepaid insurance 140 40 Equipment 3,300 2,650 Less: Accumulated depreciation (1,180 ) (770 ) Total assets $ 4,560 $ 4,060 Liabilities and Shareholders' Equity: Accounts payable $ 385 $ 530 Accrued liabilities (for general & administrative expense) 385 570 Income taxes payable 365 320 Notes payable (due 12/31/2022) 1,100 800 Common stock 1,120 970 Retained earnings 1,205 870 Total liabilities and shareholders' equity $ 4,560 $ 4,060 Required: Prepare Tiger’s statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You will have to calculate dividend payments). (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer and Explanation:

The preparation of the cash flow statement is presented below:        

                                TIGER ENTERPRISES

                                  Cash flow statement

Cash flow from operating activities

Net income $3,324

Adjustment made

Add: Depreciation expenses $410

Add: Decrease in account receivable $165 ($835 - $1,000)

Less: Increase in inventory -$55($825 - $770)

Less: Increase in prepaid insurance -$100 ($140 - $40)

Less: Decrease in account payable -$145 ($385 - $530)

Less: Decrease in accrued liabilities -$185 ($385 - $570)

Add: Increase in income taxes payable $45 ($365 - $320)

Net cash provided by operating activities  $3,459

Cash flow from investing activities  

Purchase of equipment -$650 ($3,300 - $2,650)

Net cash used by investing activities -$650

Cash flow from financing activities

Issuance of the note payable $300 ($1,100 - $800)

Issuance of the common stock $150 ($1,120 - $970)

Dividend paid -$2,989 ($870 + $3,324 - $1,205)

Net cash used by financing activities -$2,539

Increase in cash $270

Add: Beginning cash balance $370

Ending cash balance $670

The items which shown in a positive sign reflects the cash inflow and the items which shown in a negative sign reflects the cash outflow ,

A bidding firm, A, is worth $27,000 as a stand-alone entity. A target firm, B, is worth $12,000 as a stand-alone entity, but $18,000 if it is acquired and integrated with Firm A. Several other firms are interested in acquiring Firm B, and Firm B is also worth $18,000 if it is acquired by these other firms. If A acquired B, would this acquisition create value? If yes, how much? How much of this value would the equity holders of A receive? How much would the equity holders of B receive?

Answers

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Firm A’s worth as a stand-alone entity = $27,000

Firm B’s worth as a stand-alone entity = $12,000

But if Firm A acquired Firm B it’s increase worth of Firm B at $18000.

Firm A is acquired Firm B, this acquisition create value of

= $18,000 - $12000

= $6000.

With this acquisition equity holders of Firms received $18,000 which is $6,000 more than Firm B stand alone.

On March​ 1, 2018, Everson Services issued a 5​% long−term notes payable for $25,000. It is payable over a 5−year term in $5,000 annual principal payments on March 1 of each year plus​ interest, beginning March​ 1, 2019. Each yearly installment will include both principal repayment of $5,000 and interest payment for the preceding one−year period. On March​ 1, 2019,​ ________. The accounting period ends on December 31.

Answers

Answer:

The description including its given problem is outlined in the following section on the explanation.

Explanation:

Everson resources or services released a 5% hard-term notes convertible for $25,000 on Mar 1, 2018. This is paid on March 1 of every year, starting on March 1, 2019, throughout a five-year term in $5,000 amount installments. This payment seems to have the consequence of:

Assets are through during the form of money, as extra money is earned whenever a note is given.Long-term assets are rising by $25,000 at either the time of requirement throughout the form of a large-term note paid. It is indeed a longer-term burden. $5,000 notice is shown as current assets throughout the income statement on Dec 31, 2018, while the resulting $20,000 notice would be shown as significant longer-term liabilities.

Therefore, the Journal will be:

Title of accounts and explanation              Debit                     Credit

Cash                                                              25,000                       -

Long-term payable of notes                             -                        25,000

Suppose the interest rate is 4.3 %. a. Having $ 400 today is equivalent to having what amount in one​ year? b. Having $ 400 in one year is equivalent to having what amount​ today? c. Which would you​ prefer, $ 400 today or $ 400 in one​ year? Does your answer depend on when you need the​ money? Why or why​ not? a. Having $ 400 today is equivalent to having what amount in one​ year?

Answers

Answer: a. $417.2. b. $383.51. c. $400 today.

Explanation:

a. Present value = $400

Interest rate = 4.3%

Future value= PV(1+r)^n

= 400(1+0.043)^1

= 400(1.043)

= $417.2

b. FV = $400

PV = Unknown

Interest = 4.3%

Future value= PV(1+r)^n

400 = PV(1+0.043)^1

400 = PV(1.043)

PV = 400/1.043

PV = $383.51

c. I'll prefer $400 today.

My answer does not depend on me needing money presently, I can actually invest the $400 today and get more value when it's a year. I'll have made more than $400.

Selected comparative financial statements of Korbin Company follow.
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2017, 2016, and 2015
2017 2016 2015
Sales $ 555,000 $ 340,000 $ 278,000
Cost of goods sold 283,500 212,500 153,900
Gross profit 271,500 127,500 124,100
Selling expenses 102,900 46,920 50,800
Administrative expenses 50,668 29,920 22,800
Total expenses 153,568 76,840 73,600
Income before taxes 117,932 50,660 50,500
Income taxes 40,800 10,370 15,670
Net income $ 77,132 $ 40,290 $ 34,830
Required:
a. Calculate the income statement data in common-size percents.

Answers

Answer and Explanation:

The computation is shown below:

Particulars          2015        %          2014          %            2013             %

Sales                 $555,000 100        $340,000  100       $278,000     100    Less

COGS               $283,500  51.08     $212,500  62.5  $153,900      55.36    Gross profit      $271,500  $48.92   $127,500   37.5    $124,100       44.64    Less:

Selling expenses $102,900 18.54   $46,920    13.8     $50,800       18.27    Administrative expenses $50,668 9.13  $29,920 8.8 $228,00        8.20

total expenses  $153,568   27.67     $76,480    22.49 $736,00       26.47   Income before tax $117,932 21.25    $50,660    14.9    $50,500      18.16    Income taxes     $40,800   7.35        $10,370     3.05   $15,670       5.64  

Net income        $77,132     13.90      $40,290    11.85  $34,830       12.53

For cost of goods sold percentage we simply divide the cost of goods sold by the sales and the same is applied for other items

Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 32,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 26,000 and 30,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models.

The following information was compiled by the accounting department.

Model
Mountaineering Touring
Selling price per unit $ 149.00 $ 137.00
Variable costs per unit 87.70 87.70
Fixed costs will total $622,400 if the mountaineering model is produced but will be only $526,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 50 percent income tax rate.

Required:

Compute the contribution-margin ratio for the touring model. (Round your final answer to 2 decimal places.)

If Alpine Thrills Ski Company desires an after-tax net income of $41,620, how many pairs of touring skis will the company have to sell? (Do not round intermediate calculations. Round your final answer to the nearest whole unit.)

How much would the variable cost per unit of the touring model have to change before it had the same break-even point in units as the mountaineering model? (Round your intermediate calculations and final answer to 2 decimal places.)

Suppose the variable cost per unit of touring skis decreases by 15 percent, and the total fixed cost of touring skis increases by 15 percent. Compute the new break-even point. (Do not round intermediate calculations. Round your final answer up to nearest whole unit.)

Answers

Answer:

35.98%

12,362 pairs

$2.53

9,688 pairs

Explanation:

As per the data given in the question,

1)

As we know that

Contribution margin ratio = (Contribution margin per unit) ÷ (Selling price per unit) × 100

where,

Contribution margin per unit = Selling price per unit - variable cost per unit\

So,

Selling price = $137.00

Variable cost = $87.70

Contribution Margin = $137.00 - $87.70 = $49.30

Contribution margin ratio = $49.30 ÷ $137.00

= 35.98%

2)

Net Income after tax = $41,620

Income Before tax = $41,620 ÷ 50%

= $83,240

Now Pairs of touring skis will be sold by company = (Income before tax + fixed cost) ÷ Contribution Margin

= ($83,240 + $526,200) ÷ $49.30

= 12,362 pairs

3)

Break-even of mountaineering model

= Fixed cost ÷ (Selling price per unit - variable cost per unit)

= $622,400  ÷ ($149 - $87.70)

= $10,153

Now Let Variable cost be Y

$10,153 = $526,200 ÷ ($137 - Y)

Y = $85.17

Therefore, Variable cost per unit decreased by

= ($87.70 - $85.17)

= $2.53

4)

New Fixed cost

= Fixed cost × increased percentage

= $526,200 × 1.15

= $605,130

New variable cost per unit

= $87.70 × 0.85

= $74.54

New Break-even point = New Fixed cost ÷ Contribution Margin

= $605,130 ÷ ($137-$74.54)

= 9,688 pairs

Maritime Sail Makers manufactures sails for sailboats. The company has the capacity to produce 37 comma 000 sails per year and is currently producing and selling 25 comma 000 sails per year. The following information relates to current​ production: Sales price per unit $ 185 Variable costs per​ unit: Manufacturing $ 60 Selling and administrative $ 20 Total fixed​ costs: Manufacturing $ 700 comma 000 Selling and administrative $ 250 comma 000 If a special pricing order is accepted for 5 comma 700 sails at a sales price of $ 160 per​ unit, fixed costs remain​ unchanged, and there are no variable selling and administrative costs for this​ order, what is the change in operating​ income?

Answers

Answer:

Increase in operating income  = $456,000

Explanation:

According to the scenario, computation of the given data are as follow:-

                 Operating Income Statement

Particular                             Existing         New order       Total  

Current selling                     25,000             5,700             30,700

Selling price per unit                $185                    $160  

Manufacturing variable cost per unit $60            $60  

Selling and administrative variable cost per unit $20  $20  

Contribution margin per unit(CMPU)= $105     $80  

(sale price - variable cost)

Contribution margin                 $2,625,000   $456,000 $3,081,000

(sale units × CMPU)

Manufacturing fixed cost         $700,000   $700,000

Selling and administrative fixed cost $250,000  $250,000

Net operating income                $1,675,000  $2,131,000

So, Difference in net income are as follows:

Increase in operating income = $2,131,000 - $1,675,000

= $456,000

Other Questions
DEL LLUVIEWHow does reading the second passage help the readerbetter understand the first passage?Read the passage from The Lion, the Witch, and theWardrobe.They were sent to the house of an old Professor who lived inthe heart of the country, ten miles from the nearest railwaystation and two miles from the nearest post office. He had r5wife and he lived in a very large house with a housekeepercalled Mrs. Macready and three servants.- The Lion, the Witch, and the Wardrobe,C.S. LewisIt explains why people like the Professor were chosen tolook after evacuated children.It reveals that many of the evacuated children built strongfriendships with their hosts.It shows the reader why the Professor did not want tohave children of his own.It suggests that sending children to small farms was saferthan keeping them in the cities.Now read the passage from "Children of the WEvacuation."As there was such pressure on rural households to takeevacuees, some children were billeted with childless couplesand for many a lifelong relationship ensued. These are thegood news stories that we don't hear enough about.-"Children of the Wartime Evacuation."Mark this and returnSave and ExitNextSubmit 2. Which one is not true?a. I can follow my own religion.b. I have the right to be treated fairly and equally.c. I can hurt someone else.d. I have the right to a good education. Can someone help me plz? What is the direction of the vector [tex]r(t)=(1,\sqrt{3} )[/tex]?1[tex]\sqrt{2}[/tex]pi/6pi/3 (MUSIC) Provide 5 examples each for monophonic, polyphonic, and homophonic textured songs (musical and non-musical). I need help plz how much pop will buy from the store and how many candy bars will buy from store bc i am not ok A triangle has a side with length of 6 feet and another side with length of 8 feet. The angle between the sides measures 73. Find the area of the triangle. Round your answers to the nearest tenth. Please show work.a. 23.0 ft^2b. 45.9 ft^2c. 1752 ft^2d. 7.0 ft^2 Archaeology students are constructing a replica of the Great Pyramid of Giza that they will then fill with sand. The replica is to be the size of the original pyramid. The Great Pyramid is approximately meters tall and each side of the base is approximately meters long. Based on these measurements, how many cubic meters of sand will the students need? Round your answer to the nearest whole number. Help me please............ in paragraph 7, the last sentence states, tattoos further Away from the heart are also harder to remove because circulation is poorer. why do you think this makes tattoos harder to move using laser removal techniques? Find the volume of the prism shown below if the height is 3 inches Anthony has a combination of 104 nickels and quarters totaling $22. Which system of linear equations can be used to find the number of nickels? how do electric and magnetic fields interact to create electromagnets? cual es el escenario donde acontecen los hechos?? cazador de tesoros - What does X represent for this transmutation?96242Cm+X98245Cf+01n gamma +10e 24He 10e Can someone pls tell me Triangle ABC is rotated 180 using the origin as the center of rotation.On a coordinate plane, triangle A B C has points (negative 4, negative 3), (negative 5, negative 2), (negative 3, negative 2). Triangle A prime B prime C prime has points (4, 3), (5, 2), (3, 2).Which sequence of transformations will produce the same result? aa reflection over the x-axis and then a reflection over the y-axis ba translation up 4 and then a translation right 6 ca translation up 4 and then a reflection over the y-axis da translation right 6 and then a reflection over the x-axis plzzz help will mark the brainliest Can someone please help me? I keep losing points...CORRECT ANSWERS ONLY PLEASE!!!!Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.Round your answer to the nearest dollar. 2/4% 70= _____ stieliniarb kram lliw (read that backwards. may need to write it down How do developed countries maintain an advantage over developingcountries in international trade?