Answer:
Basic earnings per share(EPS)=$2.90
Explanation:
Earnings per share is the total earnings attributable to ordinary shareholders divided by the number of units of common stock .
It represents profit per unit of stock unit held by common stock holder investor. The higher, the more profitable and the better.
Earnings per share = Earnings attributable to ordinary shareholders / units of common stock
Earnings attributable to ordinary shareholders= Net income after tax - preference dividend
Net Income 2021= $590,000=
Preference Dividend =$2 × 19,000=$38,000
Earnings attributable to ordinary shareholders for 2021=
=$590,000-$38,000=$552,000
Basic Earnings per share=$552,000/190,000 shares=$2.90
Basic earnings per share(EPS)=$2.90
Personal budget
At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:
Cash balance, September 1 (from a summer job) $8,150
Purchase season football tickets in September 130
Additional entertainment for each month 210
Pay fall semester tuition in September 4,200
Pay rent at the beginning of each month 500
Pay for food each month 460
Pay apartment deposit on September 2
(to be returned December 15) 500
Part-time job earnings each month (net of taxes) 1,000
a. Prepare a cash budget for September, October, November, and December.
b. What are the budget implications for Craig Kovar?
Answer:
Craig Kovar
Cash Budget
September October November December
Beginning balance $8,150 $3,150 $2,980 $2,810
Wages 1,000 1,000 1,000 1,000
Deposit refund 500
Total cash receipts $9,150 $4,150 $3,980 $4,310
Payments:
Season football tickets 130
Entertainment 210 210 210 210
Semester tuition 4,200 4,200
Rent 500 500 500 500
Food 460 460 460 460
Apartment deposit 500
Total payments $6,000 $1,170 $1,170 $5,370
Cash balance $3,150 $2,980 $2,810 ($1,060)
b. Craig needs to borrow $1,060 in December to meet up with expenses. Alternatively, he will need to increase his monthly earnings by more than $265. He can also reduce his monthly expenses by $265 at least, especially from additional entertainment and food. He should also start considering how he could survive January without additional income.
Explanation:
a) Data and Calculations:
Receipts:
Cash balance, September 1 (from a summer job) $8,150
Part-time job earnings each month (net of taxes) 1,000
Apartment deposit returned in December $500
Payments:
Season football tickets in September 130
Additional entertainment for each month 210
Semester tuition in September 4,200
Rent at the beginning of each month 500
Food each month 460
Apartment deposit on September 2 500
Crane Company estimates that variable costs will be 55.00% of sales, and fixed costs will total $702,000. The selling price of the product is $4. (a) Compute the break-even point in (1) units and (2) dollars. (1) Break-even sales units (2) Break-even sales $ (c) Assuming actual sales are $2,000,000, compute the margin of safety in (1) dollars and (2) as a ratio. (1) Margin of safety $ (2) Margin of safety ratio %
Answer and Explanation:
The computation is shown below;
The Variable cost is
= 55% of $4
=$2.2
Now
Contribution margin per unit
= Sale - Variable cost
= $4 - $2.2
= $1.8 per unit
a.Breakeven point is
= Fixed cost ÷ Contribution margin
In units
= ($702,000 ÷ $1.8)
= 390,000 units
in dollars = (390,000 × $4)
= $1,560,000
b.Margin of safety = Total sales - Breakeven sales
In dollars = ($2,000,000 - $1,560,000)
= $440,000
Margin of safety ratio =Margin of safety ÷ Total sales
= ($440,000 ÷ $2,000,000)
= 22%
Use General Mills financial statements to answer questions in this section. All answers should be for the most recent fiscal year unless otherwise stated. For all questions in this section, enter all numbers exactly as they appear in the financial statements. This includes intermediate calculations. If it is stated as a decimal in the financials, use the same decimal in your answer. Answer without dollar signs and other symbols.
Answer:
27.4 days
Explanation:
Accounts receivable turnover days :
365 / Receivable turnover ratio
Receivable turnover ratio :
Sales / Average accounts receivables
12,442,000,000 / 932,500,000 = 13.34
Account receivable turnover days :
365 / 13.34 = 27.4 days
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 7.90 pounds $2.10 per pound $16.59
Direct labor 0.50 hours $5.00 per hour $2.50
During the most recent month, the following activity was recorded:
a. 14,850.00 pounds of material were purchased at a cost of $2.00 per pound.
b. All of the material purchased was used to produce 1,500 units of Zoom.
c. 600 hours of direct labor time were recorded at a total labor cost of $4,200.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2.1 - 2)*14,850
Direct material price variance= $1,485 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (7.9*1,500 - 14,850)*2.1
Direct material quantity variance= $6,300 unfavorable
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1,500*0.5 - 600)*5
Direct labor time (efficiency) variance= $750 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (5 - 7)*600
Direct labor rate variance= $1,200 unfavorable
Actual rate= 4,200/600= $7
Skyler Manufacturing recorded operating data for its shoe division for the year. Sales $4,500,000 Contribution margin 500,000 Controllable fixed costs 200,000 Average total operating assets 900,000 How much is controllable margin for the year
Answer:
Controllable margin= $300,000
Controllable margin in %= 33.3%
Explanation:
Controllable margin is sales revenue less controllable variable costs and fixed cost.
Controllable margin= Sales revenue - controllable variable cost - controllable fixed costs
Controllable margin= contribution margin - fixed costs
= 500,000 - 200,000= 300,000
Controllable margin in %= 300,000/900,000 × 100 =33.3%
Controllable margin in %= 33.3
Suppose that there is asymmetric information in the market for used cars. Sellers know the quality of the car that they are selling, but buyers do not. Buyers know that there is a 50% chance of getting a "lemon", a low quality used car. A high quality used car is worth $30,000, and a low quality used car is worth $15,000. Based on this probability, the most that a buyer would be willing to pay for a used car is $________. (Enter your response rounded to the nearest dollar.)
Answer:
$22,500
Explanation:
Chance of getting low quality car = 50%
Chance of getting high quality car = 50%
Cost of low quality car = $15,000
Cost of high quality car = $30,000
So, Price of the car = 50% of lower quality + 50% of higher quality
= (50% × $15,000) + (50% ×30,000)
= $7,500 + $15,000
= $22,500
Hence, price of the used car will be $22,500.
The Foundational 15 (Static) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] Skip to question [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total cost per unit $ 100 $ 68 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Foundational 13-1 (Static) Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products
Answer:
Cane Company
Total traceable fixed manufacturing overhead:
Alpha = $1,600,000
Beta = $1,800,000
Explanation:
a) Data and Calculations:
Alpha Beta
Selling price per unit $120 $80
Direct materials $ 30 $ 12
Direct labor 20 15
Variable manufacturing overhead 7 5
Traceable fixed manufacturing overhead 16 18
Variable selling expenses 12 8
Common fixed expenses 15 10
Total cost per unit $ 100 $ 68
Total traceable fixed manufacturing overhead:
Alpha = $1,600,000 ($16 * 100,000)
Beta = $1,800,000 ($18 * 100,000)
Modigliani and Miller's world of no taxes. Roxy Broadcasting, Inc. is currently a low-levered firm with a debt-to-equity ratio of /. The company wants to increase its leverage to / for debt to equity. If the current return on assets is % and the cost of debt is %, what are the current and the new costs of equity if Roxy operates in a world of no taxes? What is the current cost of equity if Roxy operates in a world of no taxes?
Answer and Explanation:
The computation is shown below:
For Current
Total assets = Debt + Equity
= 2 + 7 9
Now
Debt ratio = Debt ÷ Total assets = 2 ÷ 9
Equity ratio = Equity ÷ Total assets = 7 ÷ 9
Return on assets = Cost of debt × Debt ratio + Cost of equity × Equity ratio
11% = 9% × 2 ÷ 9 + Cost of equity × 7 ÷ 9
Cost of equity × 7 ÷ 9 = 11% - (9% × 2 ÷ 9)
Cost of equity = ( 11% - (9% × 2 ÷ 9) ) × 9 ÷ 7
= 12%
For New
Total assets = Debt + Equity = 7 + 2 = 9
Debt ratio = Debt ÷ Total assets = 7 ÷ 9
Equity ratio = Equity ÷ Total assets = 2 ÷9
Return on assets = Cost of debt × Debt ratio + Cost of equity × Equity ratio
11% = 9% × 7 ÷ 9 + Cost of equity × 2 ÷ 9
Cost of equity × 2 ÷ 9 = 11% - (9% × 7 ÷ 9)
Cost of equity = ( 11% - (9% × 7 ÷ 9) ) × 9 ÷ 2
= 18%
Matthew is the CEO of an international company. He oversees business operations in eleven countries across the globe. Which information system will he use to make strategic decisions about his company as per the four-level pyramid model?4
A.
decision support system
B.
executive information system
C.
transaction processing system
D.
office support system
E.
management information system
Answer: B. executive information system
Explanation:
The Executive information system would be best for Matthew as it provides easy information for those at executive level like Matthew.
Executive information system shows company wide information and analyses it in such a way that it presents integrated information that incorporates important data from all of the company's divisions and departments. This allows for strategic decisions to be made based on the general situation of the entire company.
What management function is to ensure that all factors of production are available to departments
You are sitting around the fire at a lodge in Dillingham, Alaska, discussing a fishing expedition you are planning with your colleagues at Great Alaska Adventures (GAA). Earlier in the day you received a fax from the president of BlueNote, Inc. The president wants to reward her top management team by taking them on an all-expense-paid fly-fishing adventure in Alaska. She would like GAA to organize and lead the expedition.
You have just finished a preliminary scope statement for the project (see below).
You are now brainstorming potential risks associated with the project.
1. Brainstorm potential risks associated with this project. Try to come up with at least five different risks.
2. Use a risk assessment form similar to Figure 7.6 to analyze identified risks.
3. Develop a risk response matrix similar to Figure 7.8 to outline how you would deal with each of the risks.
PROJECT SCOPE STATEMENT
PROJECT OBJECTIVE
To organize and lead a five-day fly-fishing expedition down the Tikchik River system in Alaska from June 21 to 25 at a cost not to exceed $35,000.
DELIVERABLES
• Provide air transportation from Dillingham, Alaska, to Camp I and from Camp II back to Dillingham.
• Provide river transportation consisting of two eight-man drift boats with outboard motors.
• Provide three meals a day for the five days spent on the river.
• Provide four hours fly-fishing instruction.
• Provide overnight accommodations at the Dillingham lodge plus three fourman tents with cots, bedding, and lanterns.
• Provide four experienced river guides who are also fly fishermen.
• Provide fishing licenses for all guests.
MILESTONES
1. Contract signed January 22.
2. Guests arrive in Dillingham June 20.
3. Depart by plane to Base Camp I June 21.
4. Depart by plane from Base Camp II to Dillingham June 25.
TECHNICAL REQUIREMENTS
1. Fly in air transportation to and from base camps.
2. Boat transportation within the Tikchik River system.
3. Digital cellular communication devices.
4. Camps and fishing conform to state of Alaska requirements.
LIMITS AND EXCLUSIONS
1. Guests are responsible for travel arrangements to and from Dillingham, Alaska.
2. Guests are responsible for their own fly-fishing equipment and clothing.
3. Local air transportation to and from base camps will be outsourced.
4. Tour guides are not responsible for the number of King Salmon caught by guests.
CUSTOMER REVIEW
The president of BlueNote, Inc.
Solution :
Risk management first involves the identification of the potential risk that may be involved. It should focus both on the objectives as well as events that could cause the consequences.
Some of the major risks that can be involved are :
• sudden weather conditions which may not support the flight travel.
• Embargo on fishing by the State or local authority suddenly
• any kind of physical injury to the members of the group
• there may be forest fire around the lake
• technical error that might occur during the course of adventures
The impact for the risk that includes the majuere risk will be very high for all the parameters that can increase the cost by 40%, it can also lead to increase in time by about 20% which can cancel the expedition. . These types of risk will not be covered under any scope.
For the physical risk, the impact will be moderate for the parameters.
Risk Response Matrix
Risk Response Contigency plan Trigger Who is responsible
Force Mitigate Choosing another Situation is Nils
Majuere destination as a back not clear in
up. 24 hours.
Physical Mitigate Proper training and After observing Eddie
injury safety kits the participants
Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20%. Banks hold no excess reserves. A customer deposits $6,000 in her checkable deposit. Assume that after receiving the deposit, the bank lends out its excess reserves. When the loan is spent, _____ of the loan will be a checkable deposit and _____ will be held by the public as cash. $6,000; $0
Answer: $2,400; $2,400
Explanation:
If a deposit of $6,000 is made, the reserve requirement is 20% so the bank will have to reserve this amount of:
= 6,000 * 20%
= $1,200
The bank will be left with:
= 6,000 - 1,200
= $4,800
The bank lends all of this out.
The public holds 50% of the currency so they will keep:
= 50% * 4,800
= $2,400
The rest - which is $2,400 - will be deposited as checkable deposits.
Assume you are the new Branch Manager of a regional distributor and you would like to ensure your sales force is making the best use of its time with the different customer segments. For those customers that exhibit all of the characteristics of the transactional customer as discussed in the notes (with no possibility to move the customer to a deeper relationship), which of the following approaches would you recommend to your sales force? Group of answer choices By creating value in the first phase of the relationship by helping transactional customers solve complex problems. By spending time researching and identifying growth opportunities for the transactional customer in other, unrelated markets. By spending time creating exceptional customer value during all four phases of the purchasing process. By exerting significant time and effort during the riskiest part of the sales process in hopes that the investment will pay off with a sale. By making the purchase process easy, hassle free and preventing post-sale issues.
Answer:
By creating value in the first phase of the relationship by helping transactional customers solve complex problems.
Explanation:
Transactional customers are this that are focused primarily on the transaction they are engaged in.
They do extensive research on order to get some expertise on a product. Therefore they do not focus on enjoying the sales process. Only the beginning of the process that involves pricing, negotiation, and to discover great products.
To retain such customers it is important to make a good impression at the early stage by creating value in the first phase of the relationship and helping them solve complex problems.
This will satisfy their need for research into a product or service.
They will keep coming back for such assistance.
If you are the proprietor of a
business, how much of the
business do you own?
A. 50%
B. 85%
C. 100%
Stella, age 38, is single with no dependents. The following information was obtained from her personal records for the 2020 year. Salary $30,000 Interest income 7,000 Alimony received 12,000 Individual retirement account contribution 2,000 Home mortgage interest expense 4,000 Property taxes 2,000 Personal casualty loss in a Federal disaster area (after the $100 floor) 38,000 Stolen investment property 16,000
Unreimbursed employee business loss 3,000
Based on the above information, what is Stella’s net operating loss for 2015?
Answer:
Net operating loss -$10,360
Explanation:
The computation of the net operating loss for the year 2015 is as follows:
Salary $30,000
Interest income 7,000
Alimony received 12,000
Less Individual retirement account contribution 2,000
Adjusted gross income $47,000
Home mortgage interest expense -$4,000
Property taxes -$2,000
Personal casualty loss ($38,000) - ($47,000 × 0.10) -$33,300
Stolen investment property -$16,000
Unreimbursed employee business loss ($3,000) - ($47,000 × 0.02) -$2,060
Net operating loss -$10,360
Question 81 pts Doug Graves Company had 50,000 shares of common stock issued and outstanding at January 1, 2020. During 2020, Graves made the following transactions: June 1 Declared a 2-for-1 stock split, when the fair value of the stock was $25 per share. Oct 15 Declared a $0.40 per share cash dividend. In Graves's statement of shareholders' equity for 2020, what amount should Graves report as dividends
Answer:
See below
Explanation:
Given the above information, we will calculate first the revised stock
Revised stock
= 50,000 × $2
= 100,000
Then,
The Dividend par share
= 100,000 × $0.40
= $40,000
The sum of $40,000 will be reported as divided as the number of shares outstanding has doubled due to stock split
In a two-player, one-shot simultaneous-move game each player can choose strategy A or strategy B. If both players choose strategy A, each earns a payoff of $400. If both players choose strategy B, each earns a payoff of $200. If player 1 chooses strategy A and player 2 chooses strategy B, then player 1 earns $100 and player 2 earns $600. If player 1 chooses strategy B and player 2 chooses strategy A, then player 1 earns $600 and player 2 earns $100.
Required:
a. Write the above game in normal form.
b. Find each player’s dominant strategy, if it exists.
c. Find the Nash equilibrium (or equilibria) of this game.
d. Rank strategy pairs by aggregate payoff (highest to lowest).
e. Can the outcome with the highest aggregate payoff be sustained in equilibrium? Why or why not?
Answer:
a) attached below
b) Player 1 dominant strategy = when he chooses strategy B
Player 2 dominant strategy = when he chooses strategy B
c) Strategy A is the Nash equilibrium
d) AA = $800
AB , BA = $700
BB = $400
e) Yes
Explanation:
A) The Game written in Normal form
attached below
B) Determine each player dominant strategy
Player 1 dominant strategy = when he chooses strategy B
Player 2 dominant strategy = when he chooses strategy B
C) The Nash Equilibrium of the game is when Both players choose strategy A because when they both choose Strategy they both earn $400 each
D) Ranking strategy pairs from Highest to lowest
AA = $800
AB , BA = $700
BB = $400
E) The outcome can be sustained
because The Nash equilibrium is the same as the highest ranking strategy pair ( i.e. AA = $800 )
Jan. 27 Received Lee's payment for principal and interest on the note dated December 13.
Mar. 3 Accepted a $5,000, 10%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company.
17 Accepted a $2,000, 30-day, 9% note in granting H. Cheng a time extension on his past-due account receivable.
Apr. 16 H. Cheng dishonored his note.
May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts.
June 1 Received the Tomas payment for principal and interest on the note dated March 3.
Required:
Calculate the interest amounts and use those calculated values to prepare your journal entries.
Question Completion:
Dec. 13 Accepted a $9,500, 45-day, 8% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable.
Answer:
Journal Entries:
Jan. 27 Debit Cash $9,595
Credit Notes Receivable (Miranda Lee) $9,500
Credit Interest Revenue $95
To record the full settlement of note and interest.
Mar. 3 Debit Notes Receivable (Tomas Company) $5,000
Credit Accounts Receivable (Tomas Company) $5,000
To record the acceptance of a 10%, 90-day note.
17 Debit Notes Receivable (H. Cheng) $2,000
Credit Accounts Receivable (H. Cheng) $2,000
To record the acceptance of a 30-day, 9% note
Apr. 16 Debit Accounts Receivable (H. Cheng) $2,015
Credit Notes Receivable (H. Cheng) $2,000
Credit Interest Revenue $15
To record the dishonoring of Cheng's note.
May 1 debit Allowance for Doubtful Accounts $2,105
Credit Accounts Receivable (H. Cheng) $2,015)
To record the write-off of H. Cheng's account.
June 1 Debit Cash $5,125
Credit Notes Receivable (Tomas Company) $5,000
Credit Interest Revenue $125
To record the full settlement of Tomas' account.
Explanation:
a) Data and Calculations:
Jan. 27 Cash $9,595 Notes Receivable (Miranda Lee) $9,500 Interest Revenue $95
Mar. 3 Notes Receivable (Tomas Company) $5,000 Accounts Receivable (Tomas Company) $5,000, 10%, 90-day note
17 Notes Receivable (H. Cheng) $2,000 Accounts Receivable (H. Cheng) $2,000 30-day, 9% note
Apr. 16 Accounts Receivable (H. Cheng) $2,015 Notes Receivable (H. Cheng) $2,000 Interest Receivable $15
May 1 Allowance for Doubtful Accounts $2,105 Accounts Receivable (H. Cheng) $2,015)
June 1 Cash $5,125 Notes Receivable (Tomas Company) $5,000 Interest Revenue $125
Interest amounts
A company reports the following: Sales $3,150,000 Average accounts receivable (net) 210,000 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover fill in the blank 1 b. Number of days' sales in receivables
Answer:
a. Account Receivables turnover = Sales / Average Account Receivables
Account Receivables turnover = $3,150,000 / $210,000
Account Receivables turnover = 15
b. Number of days sales in receivables = 365 / Account Receivables turnover
Number of days sales in receivables = 365 days / 15
Number of days sales in receivables = 24.33 days
The FOMC is presented with data and analysis showing that the output gap has gone from nearly 0 to large and negative. Additionally, inflation is 1.2% instead of the target rate, 2%. a. Using the floor framework, the FOMC is likely to influence interest rates by the interest rate it pays on excess reserves and its overnight borrowing from financial institutions. b. Additionally, the FOMC is likely the discount rate.
Answer:
A. decreasing
B. decrease
Using the floor framework, the FOMC is likely to influence interest rates by the interest rate it pays on excess reserves and decreasing its overnight borrowing from financial institutions. Additionally, the FOMC is likely decreasing the discount rate.
What is FOMC?The Board of Governors of the Federal Reserve System is in control of the discount rate and reserve requirements, while the Federal Open Market Committee is in charge of carrying out open market activities.
The FOMC is in charge of setting interest rate targets and controlling the money supply. The Fed has historically been motivated by two objectives: first, to maintain stable prices; and second, to achieve full employment.
When the Federal Open Market Committee raises interest rates, the economy and stock markets are impacted because borrowing costs for households and businesses might go up or down.
Thus, the answers are written above.
For more information about FOMC, click here:
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You have been hired as CEO of Lugar Industries and have been asked to change the organizational culture. Because your company operates in a quickly changing environment, you need to have a culture which encourages employees to respond quickly to changes, to take risks, innovate, and have the authority to make quick decisions to take advantage of opportunities and to avoid risks. Based on these conditions, you, as CEO, want a(n) ____ culture.
Answer:
adaptive culture
Explanation:
An organization with an adaptive culture is usually one that can adapt quickly to changes in their environment, This changes can result from technological innovations, changes in consumer habits, changes in regulations, etc.
The key issue here is that the organization will respond rapidly to new opportunities and changes.
A customer of RoughEdge Sharpeners alleges that RoughEdge's new razor sharpener had a defect that resulted in serious injury to the customer. RoughEdge believes the customer has a possible chance of winning the case, and that if the customer wins the case, there is a range of losses of between $1,000,000 and $3,000,000 in which any number is equally likely to occur. Under U.S. GAAP, RoughEdge should accrue a liability in the amount of:
Answer:
$5,000,000,000,000,000,000.000
Sunland Company uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2020 was $277000. The balance in the same account at the end of 2021 is $419000. Sunland’s Cost of Goods Sold account has a balance of $2110000 from sales transactions recorded during the year. What amount should Sunland report as Cost of Goods Sold in the 2021 income statement?
Answer:
$2,252,000
Explanation:
Calculation to determine what amount should Sunland report as Cost of Goods Sold in the 2021 income statement
Using this formula
2021 income statement Cost of Goods Sold =Cost of Goods Sold account+(2021 LIFO Reserve account ending balance-2020 LIFO Reserve account ending balance)
Let Plug in the formula
2021 income statement Cost of Goods Sold =$2110000+($419000-$277000)
2021 income statement Cost of Goods Sold =$2110000+$142,000
2021 income statement Cost of Goods Sold =$2,252,000
Therefore The amount that Sunland should report as Cost of Goods Sold in the 2021 income statement is $2,252,000
DeLong Corporation was organized on January 1, 2017. It is authorized to issue 13,000 shares of 8%, $100 par value preferred stock, and 526,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year.
Jan. 10 Issued 84,500 shares of common stock for cash at $6 per share.
Mar. 1 Issued 5,150 shares of preferred stock for cash at $105 per share.
Apr. 1 Issued 24,000 shares of common stock for land. The asking price of the land was $91,000. The fair value of the land was $80,500.
May 1 Issued 83,500 shares of common stock for cash at $4.75 per share.
Aug. 1 Issued 11,000 shares of common stock to attorneys in payment of their bill of $38,500 for services performed in helping the company organize.
Sept. 1 Issued 12,000 shares of common stock for cash at $7 per share.
Nov. 1 Issued 2,000 shares of preferred stock for cash at $109 per share.
Journalize the transactions. (Record journal entries in the order presented in the problem.)
Journalize Common and Preferred Stock Transactions
When most businesses are first organized or established, they include what is called Articles of Incorporation which are filed with the Secretary of State of the state in which the business is incorporated. These Articles specify the capital structure of the corporation, including preferred stock and how many shares of preferred stock may be issued and the par value of each share of preferred stock. These Articles also specify the number of common shares which the corporation may issue, and either the par value, no-par value, or the stated value per share of common stock.
Answer:
DeLong Corporation
Journal Entries:
Jan. 10: Debit Cash $507,000
Credit Common stock $253,500
Credit Additional Paid-in Capital- Common stock $253,500
To record the issue of 84,500 shares at $6 per share.
Mar. 1: Debit Cash $540,750
Credit Preferred stock $515,000
Credit Additional Paid-in Capital - Preferred stock $25,750
To record the issue of 5,150 shares at $105 per share.
Apr. 1 Debit Land $80,500
Debit Loss on Purchase of Land $10,500
Credit Common stock $72,000
Credit Additional Paid-in Capital- Common stock $19,000
To record the issue of 24,000 shares for land.
May 1: Debit Cash $396,625
Credit Common stock $250,500
Credit Additional Paid-in Capital- Common stock $146,125
To record the issue of 11,000 shares at $4.75 per share.
Aug. 1: Debit Attorney Fees $38,500
Credit Common stock $33,000
Credit Additional Paid-in Capital- Common stock $5,500
To record the issue of 11,000 shares for attorney's fees.
Sept. 1: Debit Cash $84,000
Credit Common stock $36,000
Credit Additional Paid-in Capital- Common stock $48,000
To record the issue of 12,000 shares at $7 per share.
Nov. 1: Debit Cash $218,000
Credit Preferred stock $200,000
Credit Additional Paid-in Capital-Preferred stock $18,000
To record the issue of 2,000 shares at $109 per share.
Explanation:
a) Data and Analysis:
January 1, 2017, Authorized Shares:
13,000 shares of 8%, $100 par value Preferred Stock
526,000 shares of no-par Common Stock with a stated value of $3 per share
Jan. 10: Cash $507,000 Common stock $253,500 Additional Paid-in Capital $253,500
Mar. 1: Cash $540,750 Preferred stock $515,000 Additional Paid-in Capital $25,750
Apr. 1 Land $91,000 Common stock $72,000 Additional Paid-in Capital $19,000
May 1: Cash $396,625 Common stock $250,500 Additional Paid-in Capital $146,125
Aug. 1: Attorney Fees $38,500 Common stock $33,000 Additional Paid-in Capital $5,500
Sept. 1: Cash $84,000 Common stock $36,000 Additional Paid-in Capital $48,000
Nov. 1: Cash $218,000 Preferred stock $200,000 Additional Paid-in Capital $18,000
Select the education and qualifications that are most helpful for Warehousing and Distribution Center Operations careers. Check all that apply.
high school degree
stamina
leadership
patience
concentration skills
associate degree
creativity
Answer:
High school degree
Stamina
Patience
Concentration skills
Explanation:
Just did it on edg.
The education and qualifications that are most helpful for Warehousing and Distribution Center Operations careers are:
High school degreeStaminaPatienceConcentration skillsWhat is Warehousing and Distribution Center Operation?Distribution centers offer value-added services such product mixing, order fulfilment, cross-docking, kitting, and packing in addition to the primary function of storing items in warehouses. Distribution centers, in contrast to warehouses, also only keep the necessary quantity of goods for a shorter amount of time.
Because they primarily support B2B enterprises as a conduit between suppliers and customers, distribution centers are more customer-centric. Distribution centers are in charge of effectively meeting customer demands and expectations; warehouses are in charge of safely keeping products.
Operations at distribution centers are therefore more complicated than those at warehouses. Distribution centers use state-of-the-art technology for order processing, inventory management, warehouse management, and transportation management.
Define concentration."The ability to direct your thinking in any direction you choose and to hold it for as long as you choose" is the definition of concentration.
Concentration is the capacity to narrow the field of awareness to one particular idea or subject while rejecting all other distractions.
One of the most crucial skills anybody should have is the capacity to concentrate. However, the majority of people find it difficult to focus. They frequently can't focus on one thing for a reasonable amount of time since their attention tends to wander.
This is a problem that can be solved. The capacity for concentration can be improved, just like any other talent. A person who practices mental discipline may concentrate without being interrupted by thoughts, sounds, or anything else.
While you might occasionally appear to be reading or concentrating on your work, if your attention is diverted you probably won't be able to retain the information for long enough to use it properly to produce something intelligible.
If you find the subject matter to be "boring," you're too sleepy or hungry, you have too much on your plate, you lack motivation for a long-term or short-term goal, or you're very concerned or worried and easily distracted, your ability to focus may be affected.
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The company started when it acquired $38,000 cash by issuing common stock. Purchased a new cooktop that cost $14,200 cash. Earned $23,400 in cash revenue. Paid $12,500 cash for salaries expense. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $3,500. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1.
Required:
Record the above transactions in a horizontal statements model like the following one. (In the Cosh Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA),a financing activity (FA) and net change in cash (NC). The letters NA indicate that an element is not affected by the event. Enter any decreases to account balances and cash outnows with。 minus sign.) Horizoetal Statements Model Balance Sheet Income Statement Statement of Cash Flows Event Assets Equity Common R Revenue -Expense Net Income Cash Equipment Bal
Answer:
Horizontal Statements Model
Balance Sheet Income Statement Statement of
Assets = Liabilities + Equity Revenue - Expenses = Profit Cash Flows
1. +$38,000)= 0 + $38,000 FA
2. +$14,200-$14,200 = L + E IA
3. +$23,400 = L + E +$23,400 - $23,400 OA
4. -$12,500 = L + E - $12,500 -12,500 OA
5. -$2,140 = L + E - $2,140 - 2,140 None
Total $46,760 = Liabilities + $38,000 + $8,760
Where A = assets
L = Liabilities
E = Equity
Explanation:
a) Data and Analysis:
Cash $38,000 Common stock $38,000
Cooktop $14,200 Cash $14,200
Cash $23,400 Sales revenue.
Cash $12,500 Salaries expense $12,500
Depreciation $2,140 ($14,200 - $3,500)/5
A company has designed a new product and tested the prototype. what is the next step in product development?
A. test-market the product
B. launch the product
C. evaluate ideas
D. generate ideas
Answer:
A company has designed a new product and tested the prototype. What is the next step in product development ? Test - market the product.
Explanation:
Answer option A) Test - market the product.
Structuring the Sell-or-Process-Further Decision
Bart’s Butters receives 1,000,000 containers of raw milk each period that it subsequently processes into consumable milk by adjusting the fat content, adding vitamins, and destroying any potentially harmful bacteria. For Bart’s, one container equals one gallon of consumable milk. Bart’s then must decide whether to sell its consumable milk at split-off or to process it further into butter. Bart’s normally sells consumable milk for a per-gallon price of $3. Alternately, each gallon of milk can be processed further into one-half tub of butter (i.e., one gallon of milk equals 0.5 gallon of butter) at an additional cost of $1.50 per tub of butter. Also, butter can be sold for $6.00 per tub.
Required:
1. What is the contribution to income from selling the consumable milk?
2. What is the contribution to income from processing the consumable milk into butter?
3. Should Bart’s continue to sell the consumable milk or process it further into butter?
Answer:
a. The contribution to income from selling the consumable milk is:
= 1,000,000 gallon * $3
= $3,000,000
b. The contribution to income from processing the consumable milk into butter is:
= (1,000,000 gallon*0.5 gallon) * ($6 - $1.50)
= 500,000 gallon * $4.50
= $2,250,000
c. Bart's should continue to sell the consumable milk, rather than processing the consumable milk into butter due to high contribution of $750,000 ($3,000,000 - $2,250,000).
The independent cases are listed below includes all balance sheet accounts related to operating activities:
Case A Case B Case C
Net income $314,000 $17,000 $424,000
Depreciation expense 44,000 154,000 84,000
Accounts receivable
increase (decrease) 108,000 (204,000) (24,000)
Inventory increase
(decrease) (54,000) 39,000 54,000
Accounts payable
increase (decrease) (54,000) 124,000 74,000
Accrued liabilities
increase (decrease) 64,000 (224,000 ) (44,000)
Show the operating activities section of cash flows for each of the given cases.
Answer:
Cash Flow from Operating Activities
Case A Case B Case C
Net Income $314,000 $17,000 $424,000
Adjustments to Reconcile Net income to
Net cash provided by Operating Activities
Depreciation $44,000 $154,000 $84,000
Changes in Assets and Liabilities
Accounts Receivable -$108,000 $204,000 $24,000
Inventory $54,000 -$39,000 -$54,000
Accounts Payable -$54,000 $124,000 $74,000
Accrued Liabilities $64,000 -$224,000 -$44,000
Net cash under Operating Activities $0 $236,000 $508,000
On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances:
Accounts Debit Credit
Cash $58,700
Accounts Receivable 25,000
Allowance for Uncollectible Accounts $2,200
Inventory 36,300
Notes Receivable (5%, due in 2 years) 12,000
Land 155,000
Accounts Payable 14,800
Common Stock 220,000
Retained Earnings 50,000
Totals $287,000 $287,000
During January 2021, the following transactions occur:
January 1 Purchase equipment for $19,500. The company estimates a residual value of $1,500 and a five-year service life.
January 4 Pay cash on accounts payable, $9,500.
January 8 Purchase additional inventory on account, $82,900.
January 15 Receive cash on accounts receivable, $22,000.
January 19 Pay cash for salaries, $29,800.
January 28 Pay cash for January utilities, $16,500.
January 30 Firework sales for January total $220,000. All of these sales are on account. The cost of the units sold is $115,000.
Information for adjusting entries:
Depreciation on the equipment for the month of January is calculated using the straight-line method.
The company estimates future uncollectible accounts. The company determines $3,000 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
Accrued interest revenue on notes receivable for January.
Unpaid salaries at the end of January are $32,600.
Accrued income taxes at the end of January are $9,000.
Required:
a. Prepare a multiple-step income statement for the period ended January 31, 2021.
b. Prepare a classified balance sheet as of January 31, 2021.
c. Record closing entries.
Answer:
TNT Fireworks
a. Multiple-step Income Statement for the period ended January 31, 2021:
Sales revenue $220,000
Cost of goods sold 115,000
Gross profit $105,000
Interest Revenue 50
Expenses:
Depreciation exp. 3,600
Salaries expense 62,400
Utilities expense 16,500
Bad debt expense 5,900 $88,400
Income before tax $16,650
Income taxes exp 9,000
Net income $7,650
Beginning Retained Earnings 50,000
Ending Retained earnings $57,650
b. Classified Balance Sheet as of January 31, 2021:
Assets
Current assets:
Cash $5,400
Accounts Receivable 223,000
Allowance for
Uncollectible Accounts (8,100)
Interest Receivable 50
Inventory 4,200 $224,550
Long-term assets
Notes Receivable (5%,
due in 2 years) 12,000
Land 155,000
Equipment 19,500
Depreciation (3,600) $182,900
Total assets $407,450
Liabilities and equity
Current liabilities:
Accounts Payable $88,200
Salaries payable 32,600
Income taxes payable 9,000
Total liabilities $129,800
Equity:
Common Stock $220,000
Retained Earnings 57,650
Total equity $277,650
Total liabilities and equity $407,450
c. Closing Entries:
Accounts Debit Credit
Sales revenue $220,000
Interest Revenue 50
Income summary $220,050
To close sales and interest revenue to the income summary.
Income Summary $212,400
Cost of goods sold $115,000
Depreciation exp. 3,600
Salaries expense 62,400
Utilities expense 16,500
Bad debt expense 5,900
Income taxes exp 9,000
To close cost of goods sold and expenses to the income summary.
Income summary $7,650
Retained earnings $7,650
To close the net income to the retained earnings.
Explanation:
a) Data and Calculations:
Account Balances:
Accounts Debit Credit
Cash $58,700
Accounts Receivable 25,000
Allowance for
Uncollectible Accounts $2,200
Inventory 36,300
Notes Receivable (5%,
due in 2 years) 12,000
Land 155,000
Accounts Payable 14,800
Common Stock 220,000
Retained Earnings 50,000
Totals $287,000 $287,000
Analysis of Transactions:
January 1 Equipment $19,500 Cash $19,500
January 4 Accounts payable, $9,500 Cash $9,500
January 8 Inventory $82,900 Accounts payable $82,900
January 15 Cash $22,000 Accounts receivable, $22,000
January 19 Salaries expense $29,800 Cash $29,800
January 28 Utilities expense, $16,500 Cash $16,500
January 30 Accounts receivable $220,000 Sales revenue $220,000
Cost goods sold $115,000 Inventory $115,000
Accounts Debit Credit
Cash $58,700 - 19,500 -9,500 +22,000 - 29,800 - 16,500
= $5,400
Accounts Receivable 25,000 - 22,000 + 220,000 = 223,000
Interest Receivable 50
Allowance for
Uncollectible Accounts $2,200 + 5,900 = 8,100
Inventory 36,300 + 82,900 - 115,000 = 4,200
Notes Receivable (5%,
due in 2 years) 12,000
Land 155,000
Equipment 19,500
Accumulated depreciation 3,600
Accounts Payable 14,800 - 9,500 + 82,900 = 88,200
Salaries payable 32,600
Income Taxes Payable 9,000
Common Stock 220,000
Retained Earnings 50,000
Sales revenue 220,000
Interest Revenue 50
Cost of goods sold 115,000
Depreciation exp. 3,600
Salaries expense 29,800 + 32,600 = 62,400
Utilities expense 16,500
Bad debt expense 5,900
Income Taxes 9,000
Totals $287,000 $287,000
Adjusting entries:
Depreciation expenses $3,600 Accumulated depreciation $3,600
Allowance for Uncollectible Accounts = $1,500
Allowance for uncollectible accounts = $6,600 ($220,000 * 3%)
Total allowance for uncollectible = $8,100 ($1,500 + $6,600)
Bad debts expense $ 5,900 Allowance for Uncollectible $5,900
Interest Receivable $50 Interest Revenue = $50 ($12,000 * 5% * 1/12)
Salaries Expense $32,600 Salaries payable $32,600
Income Taxes $9,000 Income Taxes Payable $9,000
Adjusted Trial Balance
As of January 31, 2021
Accounts Debit Credit
Cash $5,400
Accounts Receivable 223,000
Interest Receivable 50
Allowance for
Uncollectible Accounts $8,100
Inventory 4,200
Notes Receivable (5%,
due in 2 years) 12,000
Land 155,000
Equipment 19,500
Accumulated depreciation 3,600
Accounts Payable 88,200
Salaries payable 32,600
Income taxes payable 9,000
Common Stock 220,000
Retained Earnings 50,000
Sales revenue 220,000
Interest Revenue 50
Cost of goods sold 115,000
Depreciation exp. 3,600
Salaries expense 62,400
Utilities expense 16,500
Bad debt expense 5,900
Income taxes exp 9,000
Totals $631,550 $631,550