Zisk Co. purchases raw materials on account Budgeted purchase amounts are April, $80,000, May, $110,000, and June, $120,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $22,000. Prepare a schedule of budgeted cash payments for April, May, and June. (I need ending accounts payable)
Answers
Answer:
A schedule of cash payments for April, May, and June is prepared.
Explanation:
The following image shows the calculation and explanation of the cash payment schedule.
Related Questions
Dome Metals has credit sales of $144,000 yearly with credit terms of net 120 days, which is also the average collection period. Assume the firm adopts new credit terms of 5/10, net 120 and all customers pay on the last day of the discount period. Any reduction in accounts receivable will be used to reduce the firm's bank loan which costs 10 percent. The new credit terms will increase sales by 20% because the 5% discount will make the firm's price competitive.
Required:
a. If Dome earns 25 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted?
b. Should the firm offer a discount?
Answers
Answer:
a. The net change in income if the new credit terms are adopted is a net gain of $2,880.
b. Since the discount of 5% will result in a net gain which is $2,880, the firm should offer a discount.
Explanation:
a. If Dome earns 25 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted?
Old sales = $144,000
New Sales = Old sales * (100% + Percentage sales increase) = $144,000 * (100% + 20%) = $172,800
Increase in Sales = New Sales - Old sales = $172,800 - $144,000 = $28,800
Increase in Profit from new sales = Profit Margin * Increase in Sales = 25% * $28,800 = $7,200
Average Accounts Receivable without discount = Average Collection Period * Average daily Sales = 120 * ($144,000 / 360) = $48,000
Average Accounts Receivable with discount = Average Collection Period * Average daily Sales = 10 * ($172,800 / 360) = $4,800
Reduction in Accounts Receivable = Average Accounts Receivable without discount - Average Accounts Receivable with discount = $48,000 - $4,800 = $43,200
Loan balance as a result of reduction in accounts receivable. Therefore, we have:
Interest Saving = Interest Rate * Loan Reduction = 10% * $43,200 = $4,320
Cost of Discount = Discount Rate * New Sales = 5% * $172,800 = $8,640
Net Gain (loss) = Increase in Profit form new sales + Interest Saving - Cost of Discount = $7,200 + $4,320 - $8,640 = $2,880
Therefore, the net change in income if the new credit terms are adopted is an net gain of $2,880.
b. Should the firm offer a discount?
Since the discount of 5% will result in a net gain which is $2,880, the firm should offer a discount.
A three-year bond has an 8.0 percent coupon rate and a $1,000 face value. If the yield to maturity on the bond is 10 percent, calculate the price of the bond assuming that the bond makes semiannual coupon payments.
Answers
Answer:
$949.24.
Explanation:
The price of the bond also known as the Present Value (PV) of the Bond CAN be calculated using a Financial Calculator as
FV = $1,000
I/yr = 10%
Pmt = ($1,000 x 8.0 %) / 2 = $40
N = 3 x 2 = 6
P/yr = 2
PV = ???
Inputting the data in a Financial Calculator gives a Present Value of $949.24. Thus the price of the bond is $949.24.
Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $23.00 million. The plant and equipment will be depreciated over 10 years to a book value of $2.00 million, and sold for that amount in year 10. Net working capital will increase by $1.46 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $9.03 million per year and cost $1.93 million per year over the 10-year life of the project. Marketing estimates 17.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 22.00%. The WACC is 14.00%.
Required:
Find the NPV (net present value).
Answers
Answer:
Net cash flow in year 0 = initial investment + increase in working capital
Net cash flow in years 1 to 9 = income after taxes + depreciation
Net cash flow in year 10 = income after taxes + depreciation + recovery of working capital
the percentage of buyers shifting from regular to diet drink is irrelevant for this project
IRR is calculated using the IRR function in Excel, with the inputs of values being the array of cells containing the net cash flows
IRR = 16.7627%
What promotional strategy is being employed when Blue Cross/Blue Shield (a health insurance company) runs advertisements targeting Boeing Co. employees, in hopes that they will persuade their bosses to consider adopting a Blue Cross/Blue Shield insurance plan for their company
Answers
Answer:
Pull Strategy
Explanation:
Distribution Strategies
This simply covers the most favorable way to deliver product or service to target market/audience.
Types of distribution strategies
They includes :
1. Push Strategy:
2. Pull Strategy:
3. Combination of both: that is the use of both push and pull strategies.
Pull Strategy
In this type of strategy, marketing in this aspect is solely directed on the end consumer, who thereafter demands it from the retailer, who also then demands it from the wholesaler and lastly then the manufacturer. It is simply pulling of products through the channel. This strategy is used when consumers gather information and decide about their purchases before entering the retail outlet. Company moves their products through the distribution channel by building consumer demand for the products and thereafter influence/convince retailers to stock these products.
Types of marketing communications used in Pull strategy selling. They includes:
1. Advertising,
2. Consumer sales promotions,
3. Public relation.
When a company uses advertising to increase demand for their product or services, the pull promotional strategy is used. Blue Cross/ Blue shield uses the pull promotion strategy.
What is a strategy?
A strategy refers to the method or plan used to achieve the organization's goals.
A Pull marketing strategy is a type of strategy employed by an organization to create the demand for a product by various means like Sales promotion and discount, Advertising, Email marketing, Social media networks, etc.
Different marketing activities are involved to pull customers to their products.
Therefore, Blue cross employed the pull promotional strategy to target Boeing co. employees.
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out line four roles played by entrepreneurs in Kenya
Answers
Answer:
The roles of entrepreneurs in Kenya are:
Looking out for and spotting opportunities in the marketCreating jobsIncreasing the Internally Generated Revenue of KenyaDevelopment of InfrastructureExplanation:
Entrepreneurs know how to spot changes and patterns in business trends. When the market begins to tilt in a particular direction, entrepreneurs are quick to spot and take advantage of such. Many times, they even think of the demand before the market knows it to exist.Job creation is one of the reasons why SMEs are invaluable to any economy. Kenya inclusive. When a business does well, where it is located, this translates to increased revenue for the government. There are two main channels via which the government can make money from businesses:A. Company Income Tax
B. Taxes paid to the government by employees working in such establishments.
Countries that are business savvy run an environment that is enabling for entrepreneurs whilst providing tax incentives for top talent. Hence attracting more revenue to their coffers.
Because governments need businesses to thrive, they provide every amenity that is necessary for businesses and their staff to be comfortable in such environments. This way, entrepreneurs indirectly influence the development of infrastructure.Cheers
You purchased a stock at a price of $47.52. The stock paid a dividend of $1.55 per share and the stock price at the end of the year was $52.34. What was the total return for the year
Answers
Answer:
13.40%
Explanation:
The price of the stock is $47.52
The stock paid a dividend of $1.55
The stock price at the end of the year is $52.34
Therefore the total return for the year can be calculated as follows
= 52.34-47.52+1.55/47.52
= 6.37/47.52
= 0.1340×100
= 13.40%
Hence the total return for the year is 13.40%
You have just been hired as the director of operations for Reidâ Chocolates, a purveyor of exceptionally fine candies. Reid Chocolates is evaluating a kitchen layout under consideration for its recipe making and testing department. The strategy is to provide the best kitchen layout possible so that food scientists can devote their time and energy to productâ improvement, not wasted effort in the kitchen.
Flow Refrigerator Counter Sink Storage Stove
Refrigerator - 8 14 0 0
Counter 7 - 4 4 8
Sink 4 14 - 4 0
Storage 3 0 0 - 5
Stove 0 9 4 11 -
For layout numberâ one, the cumulative â"loadtimesÃâdistance" orâ "movementâcost"equals=_____feet â(enter your response as a wholeâ number).
For layout numberâ two, the cumulativeâ"loadtimesÃâdistance" orâ "movement âcost"= _________feetâ(enter your response as a wholeâ number).
Answers
Solution :
Number or strips between the work centers
From/To Refrigerator(1) Counter(2) Sink(3) Storage(4) Stove(5)
Refrigerator 1 8 14 0 0
Counter 2 7 4 4 8
Sink 3 4 14 4 0
Storage 4 3 0 0 5
Stove 5 0 9 4 11
The weighted average score can be calculated by finding the distance between the departments.
Departments No. of strip Distance Wt. Distance
1,2 8 4 32
1,3 14 8 112
2,1 7 4 28
2,3 4 4 16
2,4 4 8 32
2,5 8 12 96
3,1 4 8 32
3,2 14 4 56
3,4 4 4 16
4,1 3 12 36
4,5 5 4 20
5,2 9 12 108
5,3 4 8 32
5,4 11 4 44
660
Therefore, load time x distance or the movement cost = 660 feet
Begin with a single sum of money at period 0. First, calculate a future value of that sum at 12.01%. Then discount that future value back to period 0 at 11.99%. In relation to the initial single sum, the discounted future value:_________
a. Is greater than the original amount
b. Is less than the original amount
c. Is the same as the original amount
d. Cannot be determined with the information given
Answers
Answer:
A
Explanation:
Let single sum = 100
The formula for calculating future value:
FV = P (1 + r)^nm
FV = Future value
P = Present value
R = interest rate
m = number of compounding
N = number of years
Future value in year 1 = 100 x 1.1201 = 112.01
Present value = future value / (1 + r)
112.01 / 1.1199 = 100.02
The discounted future value, 100.02 , is greater than, 100, the value at the initial stage by 0.02
Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $18,000 but the book value is $32,000. The firm's tax rate is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired.
A. $47,800
B. $70,000
C. $52,000
D. $40,100 20.
Answers
Answer:
A. $47,800
Explanation:
Calculation to determine the net cash outflow for the new machine after considering the sale of the old machine
First step
Loss on sale of old machine = 18000 - 32,000
Loss on sale of old machine = ($14,000)
Second step
Tax savings from loss on sale=14,000 x 30%
Tax savings from loss on sale = $4200
Third step
Net benefit from sale of old machine = Sales proceeds + tax on loss of sale
Net benefit from sale of old machine= $18,000 + $4200
Net benefit from sale of old machine= $22,200
Now let determine the Net cash outflow for new machine
Net cash outflow for new machine = Cost of new machine – Net benefit
Net cash outflow for new machine= $70,000 – $22,200
Net cash outflow for new machine= $47,800
Therefore the net cash outflow for the new machine after considering the sale of the old machine is $47,800
This Question: 1 pt
The law of demand
shown graphically by a
demand curve
When the price of a good drops, consumers purchase more of it because of
O A. the substitution effect only.
OB. neither the income nor the substitution effect.
O C. the income effect only
OD. both the income and substitution effect.
Click to select your answer
Type here to search
о
Answers
Answer:
C. the income effect only
Explanation:
In microeconomics, the income effect is the change in demand for a good or service caused by a change in a consumer's purchasing power resulting from a change in real income. This change can be the result of a rise in wages etc., or because existing income is freed up by a decrease or increase in the price of a good that money is being spent on
Terry estimates that the costs of insurance, license, and depreciation to operate his car total $460 per month and that the gas, oil, and maintenance costs are 34 cents per mile. Terry also estimates that, on average, he drives his car 2,000 miles per month. Required: a. How much cost would Terry expect to incur during July if he drove the car 1,534 miles
Answers
Answer:
Total cost= $984.62
Explanation:
Giving the following information:
Fixed cost= $460
Unitary variable cost= $0.34 per mile
Miles driven= 1,534
First, we need to establish the total cost formula:
Total cost= fixed cost + unitary variable cost*number of units
Total cost= 460 + 0.34*x
x= number of miles
Now, the total cost for the month:
Total cost= 460 + 0.34*1,543
Total cost= $984.62
You own 400 shares of Stock A at a price of $50 per share, 290 shares of Stock B at $75 per share, and 700 shares of Stock C at $27 per share. The betas for the stocks are .6, 1.2, and .5, respectively. What is the beta of your portfolio
Answers
Answer:
0.67
Explanation:
Beta measures the systemic risk of a portfolio
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
weighed beta of a stock = percentage of the stock in the portfolio x beta of the stock
total number of stocks in the portfolio 400 + 290 + 700 = 1390
(400 / 1390 x 0.6) + (290 / 1390 x 1.2) + (700 / 1390 x 0.5) =
0.17 + 0.25 + 0.25 = 0.67
)An investor is trying to decide between a muni paying 5.75 percent or an equivalent taxablecorporate paying 8.25 percent. What is the minimum marginal tax rate the investor must have toconsider buying the municipal bond
Answers
Answer: 30.3%
Explanation:
Because taxes are not paid on municipal bond interest, their interest rates are usually lower with the difference accounting for the taxes paid.
For a municipal bond to be similar to a corporate bond, the tax rate must be such that it makes them equal:
Municipal bond return = Corporate bond return * (1 - tax rate)
5.75% = 8.25% * (1 - tax)
1 - tax rate = 5.75% / 8.25%
1 = 0.6969697 + Tax rate
Tax rate = 1 - 0.6969697
= 30.3%
You are considering the purchase of a machine out of your evaluation among four new ones. They have differing initial and ongoing costs and differing lives. Whichever machine is purchased will be replaced at the end of its useful life. Under such circumstances, you should choose the machine to purchase based on the ___________________.
Answers
Answer:
Lowest equivalent annual cost.
Explanation:
Considering the above scenario, it is more advantageous to choose the machine that has the lowest equivalent annual cost. As the newly acquired machine will be replaced at the end of its useful life, it is more advantageous for it to have a higher performance and lower annual cost among others, as the cost of depreciation of machinery and equipment must be considered as a fixed cost that will also directly impact a company's accounts.
On January 1, a machine with a useful life of 10 years and a residual value of $76000 was purchased for $280000. What is the depreciation expense for year 2 under the double-declining-balance method of depreciation
Answers
Answer:
ill try but no promises ok
Based on a predicted level of production and sales of 20,000 units, a company anticipates total variable costs of $96,000, fixed costs of $24,000, and operating income of $163,200. Based on this information, the budgeted amount of contribution margin for 17,000 units would be:
Answers
The budgeted value of the contribution margin for 17,000 units should be $159,120.
But before determining the contribution margin value first determine the following amounts:
Current contribution margin = Fixed costs + Target operating income
= $24,000 + $163,200
= $187,200
Now contribution margin per unit is
= $187,200 ÷ 20,000 units
= $9.36 per unit
And, finally the contribution margin value should be
= 17,000 units × $9.36 per unit
= $159,120
Therefore, we can conclude that The budgeted value of the contribution margin for 17,000 units should be $159,120.
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Goal setting is a valuable tool for improving your own performance and managing that of your subordinates.
a. True
b. False
Answers
Help please
Identify ways to reduce shrinkage
Answers
Answer:
Increase Employee Accountability. ...
Train Staff to Follow Security Policies and Procedures. ...
Consider Your Store Layout. ...
Develop a Culture of Loss Prevention. ...
Invest in Automated Cash Management Technology.
Elm Corporation is a merchandising company. The year began with inventory of $21,000, Purchases for the year were $46,000, and the Ending Inventory was $8,000. What is the Cost of Goods Sold that would be reported on the income statement
Answers
Answer:
$59,000
Explanation:
Calculation to determine the Cost of Goods Sold that would be reported on the income statement
Using this formula
Cost of Goods Sold=Purchases for the year+beginning Inventory)-Ending Inventory
Let plug in the formula
Cost of Goods Sold=($46,000+$21,000) - $8,000
Cost of Goods Sold=$67,000-$8,000
Cost of Goods Sold=$59,000
Therefore the Cost of Goods Sold that would be reported on the income statement is $59,000
Inc. has just now paid a dividend of $2.50 per share (Div0); its dividends are expected to grow at a constant rate of 4 percent per year forever. If the required rate of return on the stock is 14 percent, what is the current value of the stock, after paying the dividend?
a. $26
b. $25
c. $17.86
d. $21.33
Answers
Answer: a. $26
Explanation:
Given the details in the question, the value of the stock can be calculated by the Gordon Growth Model:
= Next dividend / (Required return - growth rate)
= (Current dividend * growth rate) / (Required return - growth rate)
= (2.50 * (1 + 4%)) / (14% - 4%)
= 2.625 / 10%
= $26.25
= $26
Suppose a firm has an annual expenses of $170,000 in wages and salaries, $75,000 in materials, $60,000 in rental expense, and $5,000 in interest expense on capital. The owner-manager does not choose to pay himself, but he could receive income of $30,000 by working elsewhere. The firm earns revenues of $420,000 per year.
1. What are the annual economic costs for the firm described above?
$310,000.
$320,000.
$340,000.
$400,000.
2. What is the economic profit for the firm described above?
$10,000.
$20,000.
Loss of $80,000.
$80,000.
3. To receive a normal profit the firm described above would have to:
Reduce expenses by $10,000.
Earn $80,000 more in revenue.
Earn $80,000 less in revenue.
Earn $310,000 more in revenue.
Answers
Answer:
1. The annual economic costs for the firm described above is:
= $340,000.
2. The economic profit for the firm described above is:
= $80,000.
3. To receive a normal profit the firm described above would have to:
None of the above.
Explanation:
a) Data and Calculations:
Wages and salaries expenses = $170,000
Cost of materials = $75,000
Rental expense = $60,000
Interest expense on capital = $5,000
Total expenses = $310,000
Opportunity cost = $30,000
Total costs = $340,000
Revenue per year = $420,000
1. The annual economic costs for the firm described above is:
= $340,000 ($310,000 + $30,000).
2. The economic profit for the firm described above is:
= $80,000 ($420,000 - $340,000).
3. To receive a normal profit the firm described above would have to:
None of the above.
The normal profit = $110,000 ($420,000 - $310,000)
difference between Kenyan and china culture
Answers
Chinese culture is one of the world's oldest cultures, tracing back to thousands of years ago. Important components of Chinese culture includes ceramics, architecture, music, literature, martial arts, cuisine, visual arts, philosophy and religion
If there are 360 million people living in the U.S, but 1 million died of health issues leaving 289 million eligible workers, what is the unemployment rate if 170 million are in the labor force and 7 million are actively seeking work?
Answers
Answer: 4.12%
Explanation:
Unemployment rate only includes people who are actively looking for work and no discouraged workers or those who have retired:
Unemployment rate = Number of unemployed looking for work / Labor force
= 7,000,000 / 170,000,000
= 4.12%
, G's employees each earned an average of $870 per week. A total of 600 vacation weeks earned in 2021 were not taken during 2021. Wage rates for employees rose by an average of 6 percent by the time vacations actually were taken in 2022. What is the amount of G's 2022 salaries expense related to 2021 vacation tim
Answers
Answer:
$31,320
Explanation:
Calculation to determine the amount of G's 2022 salaries expense related to 2021 vacation tim
G's employees earned average of $870 per week.
Total vacation week in 2021 wew not taken - 600 week
Total salary expense of G corporation = $870 per week × 600
Total salary expenses = $522,000
If Wage rates for employees rose by an average of 6 percent
The amount of G's 2022 salaries expense = Total salary expenses × wage rate
The amount of G's 2022 salaries expense = $522,000 × 6%
The amount of G's 2022 salaries expense = $31,320
Therefore the amount of G's 2022 salaries expense related to 2021 vacation tim is $31,320
A frozen foods company changes an ingredient to meet a new government standard. This is an example of
O following a federal regulation.
O lowering prices for customers.
O reducing the risk for consumers.
o creating a new product.
Answers
O following a federal regulation.
It’s not lowering prices, because there’s no mention of prices in the question, and it wouldn’t be creating a new product if it’s altering a single ingredient. It although it could possibly reduce risk for consumers, the question doesn’t directly say anything about that, so the answer would have to be the top one.
Higher customer satisfaction and more efficient use of resources are impacts of businesses that operate with a _______
a: cost saving motive
b: customer service motive
c: efficiency motive
d: profit motive
Answers
Answer:
customer service motive
Answer:
I believe it's C: efficiency motive.
Explanation:
I did inspect element on course hero for the same question, and the answer was highlighted. Additionally, the question seems to highlight efficient uses of resources purposefully in businesses, so it seems that efficiency motive also goes hand in hand with that.
A company issued $50,000 of 8%, 10-year bonds on January 1. The bonds pay semi annual interest. The present value factor of a single amount of 20 periods at 8% is 0.2145.The present value of 10 periods at 4% is 0.6756. The present value of 20 periods at 4% is 0.4564. Determine the present value of the par value of the bonds. Multiple choice question. $22,820 $10,725 $50,000 $33,780 g
Answers
Answer:
$22,820
Explanation:
Calculation to determine Determine the present value of the par value of the bonds.
Discount rate =8%/2
Discount rate= 4%
Present value factor of 20 periods at 4%= ( 1 / 1.04^20 )
Present value factor of 20 periods at 4%=0.4564
Using this formula
Present value of the par value of the bond = Future value of the bond x Present value factor =
Let plug in the formula
Present value of the par value of the bond=$50,000 x 0.4564
Present value of the par value of the bond = $22,820
Therefore the present value of the par value of the bonds is $22,820
Describe two distinct reasons why someone who has never used a drug in his or her life might refuse a test at work. Convert those reasons into well-founded ethical arguments.
Answers
Answer: See explanation
Explanation:
The two main reasons why someone who has never used a drug in his or her life might refuse a test at work are provided below:
1. If there's no health related reason for the employer to perform the test.
2. When there's no reason by the employee to believe that drug use is occurring.
It should be noted that an employee can refuse a testing unless testing is mandatory for the job or when there's reasonable suspicion. In a situation where there's suspicion, then ethically, the drug test is reasonable as an employee who uses drug can be less productive than others.
Based on this argument, the privacy of the employee should be respected. For example, in a scenario whereby an employer request for a urine sample of the employee, this is an invasion of privacy. Even if the worker took the substance tbe previous night, he or she didn't take it while at work and hence, that isn't the concern of the employer.
Also, there is an argument of freedom. As individuals, we have the right to pursue our own happiness. This is a legal argument.
During Year 1, Hardy Merchandising Company purchased $20,000 of inventory on account. Hardy sold inventory on account that cost $15,000 for $22,500. Cash payments on accounts payable were $12,500. There was $20,000 cash collected from accounts receivable. Hardy also paid $4,000 cash for operating expenses. Assume that Hardy started the accounting period with $18,000 in both cash and common stock.
Required:
a. Record the events in a horizontal statement model.
b. What is the balance of accounts recelvable at the end of 2018?
c. What is the balance of accounts payable at the end of 2018?
d. What are the amounts of gross margin and net income for 2018?
Answers
Answer:
[b] = $ 2500
[c] = $ 7500
[d] = Gross margin = 22500 – 15000 = $ 7500
Net Income = 7500 – 4000 = $ 3500
[e] = $ 3500
Explanation:
Here the solution is given as follows,
To reduce your chances of identify theft you should
a.
carry your Social Security Card in your wallet.
b.
check your credit rating regularly.
c.
only use drive thru ATM’s.
d.
never keep receipts with credit information printed on them.
Answers
To reduce your chances of identify theft you should: d. never keep receipts with credit information printed on them.
What is identity theft?Identity theft can be defined as the way in which person tend to make use of another person personal data or information so as to defraud people or to commit a crime.
This person can either make use of the person name, credit card numbers among others to commit a fraudulent act by impersonating the owner without the awareness of the person that owns the information.
In order to reduce the identify theft it is advisable that a person should never keep receipts that has details of their credit information printed on them as a fraudster can make use of the information to defraud or to commit crime.
Therefore To reduce your chances of identify theft you should: d. never keep receipts with credit information printed on them.
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