Controlling is defined as monitoring performance, comparing it with goals and taking corrective action as needed. Hence, option A is correct.
What is Controlling?Others may label someone a controlling person if they attempt to control events or other people in an unhealthy way. They might try to exert control over an environment by taking charge and handling everything themselves, or they might try to exert control over others via trickery, coercion, threats, and intimidation.
When one spouse dominates the other in an unhealthy or self-serving way, the relationship is said to be controlling. You may be in a dominating relationship if your partner consistently makes you feel frightened, insecure, or guilty. Control is sometimes a form of abuse in a relationship.
Thus, option A is correct.
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The trial balance for Splish Brothers Inc. appears as follows: Splish Brothers Inc. Trial Balance December 31, 2022 Cash $340 Accounts Receivable 595 Prepaid Insurance 93 Supplies 205 Equipment 4560 Accumulated Depreciation, Equipment $680 Accounts Payable 438 Common Stock 1370 Retained Earnings 1600 Service Revenue 3415 Salaries and Wages Expense 1140 Rent Expense 570 $7503 $7503 If as of December 31, 2022, rent of $171 for December had not been recorded or paid, the adjusting entry would include a: debit to Rent Expense for $171 debit to Rent Payable for $171 credit to Cash for $171. credit to Accumulated Rent for $171.
Answer:
debit to Rent Expense for $171
Explanation:
The adjusting entry would be
Rent Expense $171
To Rent expenses payable $171
(Being Rent expense accounted is recorded)
Here the rent expense is debited as it increased the assets and credited the rent expense payable as it also increased the liabilities
Therefore the a option is correct
ANd, the rest of the options would be wrong
Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system.
A report for the company's Assembly Department for the month of March follows:
Assembly Department
Cost Report
For the Month Ended March 31
Actual Results Planning Budget Variances
Machine-hours 15,000 20,000
Variable costs:
Supplies $9,300 $ 9,900 $600F
Scrap 32,200 34,500 2,300F
Indirect materials 93,800 111,000 17,200F
Fixed costs:
Wages and salaries 77,500 73,000 4,500 U
Equipment depreciation 103,000 103,000 -
Total cost $315,800 $331,400 $15,600F
After receiving a copy of this cost report, the supervisor of the Assembly Department stated, "These reports are super. It makes me feel really good to see how well things are going in my department. I can't understand why those people upstairs complain so much about the reports."
For the last several years, the company's marketing department has chronically failed to meet the sales goals expressed in the company's monthly budgets.
Required:
1. The company's president is uneasy about the cost reports, identify at least two reasons.
2. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs?
3. Complete the new performance report for the quarter, based on the Flexible Budget Performance approach.
4. Were costs well controlled in March?
Answer:
Westmont Corporation
1. One reason is that the actual results shows that budget performance was not more than 75% but the actual variable costs were more than 75%. Two, despite the above, the variance reports show a favorable outcome instead of an unfavorable one.
2. Using a flexible budget report will draw out better insight into the performance of the departmental supervisors and how they are controlling costs.
3. Assembly Department
Cost Report
For the Month Ended March 31
Actual Results Flexible Budget Variances
Machine-hours 15,000 20,000
Variable costs:
Supplies $9,300 $ 7,425 $1,875 U
Scrap 32,200 25,875 6,325 U
Indirect materials 93,800 83,250 10,550 U
Fixed costs:
Wages and salaries 77,500 73,000 4,500 U
Equipment depreciation 103,000 103,000 -
Total cost $315,800 $292,550 $23,250 U
4. The above report shows that costs were not well controlled in March. This contrasts with how performance was showed with the planning budget.
Explanation:
a) Data and Calculations:
Assembly Department
Cost Report
For the Month Ended March 31
Actual Results Planning Budget Variances
Machine-hours 15,000 20,000
Variable costs:
Supplies $9,300 $ 9,900 $600 F
Scrap 32,200 34,500 2,300 F
Indirect materials 93,800 111,000 17,200 F
Fixed costs:
Wages and salaries 77,500 73,000 4,500 U
Equipment depreciation 103,000 103,000 -
Total cost $315,800 $331,400 $15,600 F
Flexing the budget:
Machine-hours 15,000 20,000
Variable costs:
Supplies $9,900 *15,000/20,000 = $7,425
Scrap 34,500 *15,000/20,000 = $25,875
Indirect materials 111,000 *15,000/20,000 = $83,250
b) The flexible budget of the Assembly Department of Westmont Corporation shows that costs were overrun and overall variance was unfavorable unlike the report presented under the planning budget.
how can a writer be grief when writing professional letters
A. By adding a writer be brief when writing professional letters
B. By adding background information
C. By avoiding words that end in " Ize or ton"
D. By writing a concise letters that addresses your purpose
Answer:
D. By writing a concise letters that addresses your purpose
Explanation:
Got it right.
Exercise 13-06 a-b Here are the comparative income statements of Sarasota Corp.. SARASOTA CORP. Comparative Income Statement For the Years Ended December 31 2020 2019 Net sales $588,000 $490,000 Cost of goods sold 449,820 402,780 Gross Profit 138,180 87,220 Operating expenses 85,260 46,550 Net income $ 52,920 $ 40,670 (a) Prepare a horizontal analysis of the income statement data for Sarasota Corp., using 2019 as a base
Answer:
Horizontal Analysis of the Income Statement
For the Year Ended December 31, 2020:
Percentage
Increase
Net sales $588,000 20%
Cost of goods sold 449,820 11.68%
Gross Profit 138,180 58.43%
Operating expenses 85,260 83.16%
Net income $ 52,920 30.12%
Explanation:
a) Data and Calculations:
SARASOTA CORP.
Comparative Income Statement
For the Years Ended December 31
2020 2019 Increase
Net sales $588,000 $490,000 $98,000
Cost of goods sold 449,820 402,780 47,040
Gross Profit 138,180 87,220 50,960
Operating expenses 85,260 46,550 38,710
Net income $ 52,920 $ 40,670 12,250
Net Sales increase = $98,000/$490,000 * 100 = 20%
Cost of goods sold = $47,040/$402,780 * 100 = 11.68%
Gross profit = $50,960/$87,220 * 100 = 58.43%
Operating expenses = $38,710/$46,550 * 100 = 83.16%
Net Income = $12,250/$40,670 * 100 = 30.12%
b) Horizontal Analysis (%) = [(Amount in 2020 – Amount in 2019) / Amount in 2019] * 100. The analysis records the growth trend between the elements of the base year and the comparison year.
In 2020, Bertha Jarow had a $28,000 loss from the sale of a personal residence. She also purchased from an individual inventor for $7,000 (and resold in two months for $18,000) a patent on a rubber bonding process. The patent had not yet been reduced to practice. Bertha purchased the patent as an investment. In addition, she had the following capital gains and losses from stock transactions:
Long-term capital loss ($6,000)
Long-term capital loss carryover from 2019 (12,000)
Short-term capital gain 21,000
Short-term capital loss (7,000)
Required:
What is Bertha's net capital gain or loss?
Answer:
Bertha has a net long-term capital loss of $ 7,000. Bertha has a net short-term capital gain of $ 14,000 As a result, Bertha has an overall net short-term capital gain of $ 7,000.
Explanation:
Bertha Jarrow had a $28,000 loss from the sale of a personal residence. She also purchased from an individual inventor for $7,000 (and resold in two months for $18,000) a patent on a rubber bonding process. The patent had not yet been reduced to practice. Bertha purchased the patent as an investment. In addition, she had the following capital gains and losses from stock transactions: Long-term capital loss carryover from 2018 ($6,000) (12,000) 21,000 (7,000) Short-term capital gain Short-term capital loss a. What is Bertha's net capital gain or loss? Bertha has a net long-term capital loss of $ 7,000. Bertha has a net short-term capital gain of $ 14,000 As a result, Bertha has an overall net short-term capital gain of $ 7,000.
b. Complete the letter to Bertha, explaining the tax treatment of the sale of her personal residence. Assume Bertha's income from other sources puts her in the 24% bracket. Nellen, Young, Raabe, & Maloney, CPAs 5191 Natorp Boulevard Mason, OH 45040 March 17, 2020, Ms. Bertha Jarow 120 West Street Ashland, OR 97520 Dear Ms. Jarow: This letter is in response to your request for an explanation of the tax treatment of the sale of your residence. As you know, the residence was sold for less than your cost. Thus, you had a $ loss on the residence sale. Because the home was a personal use asset, tax law does not allow that loss to be deducted on your tax return. Thank you for the opportunity to be of service. Please telephone me if you have additional questions.
Stockholders of Hudson Enterprises recently received an annual dividend of $2.50 per share. Three analysts are trying to determine the value of this stock based on expected future dividends. Each analyst uses a required return of 14%. Use appropriate dividend valuation models to find the value of Hudson stock under each of the following sets of assumptions:
a. Analyst A assumes dividends will remain constant at $2.50 for the indefinite future. Show D0, D1, r, g and Analyst A's price.
b. Analyst B assumes dividends will grow at a constant rate of 7% per year for the indefinite future. Show D0, D1, r, g and Analyst B's price.
c. Analyst C assumes dividends will grow at 14% for the next 2 years and will thereafter grow at a constant rate of 7% for the indefinite future. Show D0, D1, D2, D3, r, g and Analyst C's price.
d. Analyst D uses the market multiple approach to value a company's stock. Hudson has had an average P/E of 15 and an average P/S of 2 over the last few years. Earnings per share of $3 and sales per share of $20 are forecast for next year. What is Analyst D's price based on earnings? Based on Sales?
A company issues $90,000 of 9%, 10-year bonds dated January 1 that pay interest semiannually on June 30 and December 31 each year. If bonds are sold at par value, the issuer records the payment of principal at maturity with a (debit/credit) ________ to bond payable in the amount of _______. Multiple choice question. debit; $171,000 credit; $171,000 debit; $90,000 credit; $90,000 Need help
Answer:
Debit; $90,000
Explanation:
Based on the information given in a situation where the company issues the amount of $90,000 on January 1 which means that assuming the bonds are sold at par value, the issuer of the bonds will records the payment of principal at maturity with a DEBIT to bond payable in the amount of $90,000.
Cost behavior for variable overhead is more difficult to predict than the behavior of direct materials or direct labor cost for all the following reasons except: A. Multiple cost drivers are involved with variable overhead. B. Direct material and direct labor contain no semi-variable component. C. The variable portion of overhead must first be separated from the fixed portion. D. Variable overhead is a relatively small part of total overhead.
Answer:
D. Variable overhead is a relatively small part of total overhead.
Explanation:
The variable overhead of the cost behavior would become more difficult for estimation as compared with the behavior of direct materials or direct labor for all the given reasons but it should not be valid for the variable overhead that contains small part of the total overhead
Therefore according to the given situation, the option D is correct
In the history of product liability, the rights of produces and consumers have
a.
favored producers.
b.
favored consumers.
c.
remained nuetral.
d.
None of the above
Answer:
a
Explanation:
Selling Something People Could Get for FREE". Is it possible? Comment with example.
Answer:
yes its possible. You could sell dirt
rdan Corporation expects to incur indirect overhead costs of $172,550 per month and direct manufacturing costs of $18 per unit. The expected production activity for the first four months of the year are as follows. January February March April Estimated production in units 5,300 7,300 4,800 6,400 Required Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. Allocate overhead costs to each month using the overhead rate computed in Requirement a. Calculate the total cost per unit for each month using the overhead allocated in Requirement b.
Answer:
Results are below.
Explanation:
Giving the following information:
Total estimated overhead costs= (172,550*4)= $690,200
Total estimated units= 23,800
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 690,200 / 23,800
Predetermined manufacturing overhead rate= $29 per unit
Now, we can allocate overhead to each month:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
January= 29*5,300= $153,700
February= 7,300*29= $211,700
March= 29*4,800= $139,200
April= 29*6,400= $185,600
Finally, the unitary total cost:
Unitary cost= 18 + 29= $47
Bella Donna Company has 100,000 shares of $2 par common stock issued and outstanding as of January 1, 2018. The shares were originally issued for $8 per share. On February 3, 2018, Bella Donna repurchased 3,590 shares at $6 per share for the purposes of retiring them. What will be the balance in Paid in capital in excess of par after February 3rd transaction?
Answer:
$585,640
Explanation:
Paid in capital in excess of on January 1 , 2018
= 100,000 × ($8 - $2)
= $100,000 × $6
= $600,000
Paid in capital in excess of par on repurchased share for retiring
= 3,590 × ($6 - $2)
= 3,590 × $4
= $14,360
Therefore,
Balance in paid in capital in excess of par after February 3rd transaction
= $600,000 - $14,360
= $585,640
Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing.
2019 2020 2021
Sales revenue $292,090 _________ $413,950
Sales returns and allowances (10,530) (13,790) (17847)
Net sales 281560 345,615 396103
Beginning inventory 19,340 34,400 _________
Ending inventory 34400 43065 49896
Purchases 247720 260,690 297,524
Purchase returns and allowances (4,760) (7,410) (10,070)
Freight-in 8,790 _________ 11,900
Cost of goods sold (236,690) (252735) (292,523)
Gross profit on sales 44,870 92,880 _________
Answer:
2020:
Sales revenue = Net Sales + Sales returns
= 345,615 + 13,790
= $359,405
Freight-In = Cost of goods sold - Beginning inventory - Purchases + Purchase returns + Ending inventory
= 252,735 - 34,400 - 260,690 + 43,065 + 7,410
= $8,120
2021:
Beginning inventory = Ending inventory 2020 = $43,065
Gross Profit on sales = Net sales - Cost of goods sold
= 396,103 - 292,523
= $103,580
Many influential economists, politicians, and business leaders think that a shift toward a more integrated and interdependent global economy is a good thing.
a. True
b. False
Answer:
A) true
Explanation:
Globalization can be regarded as process involving interaction as well as integration that exist among firms, peopl as well as government and companies worldwide. As a result of Globalization national as well as international companies has become stable and increased in competency and thriving in giving their very best in terms of their produced products.quality in technology as well as quality in education and health sector has also been increased as a result of Globalization. It should be noted that Many influential economists, politicians, and business leaders think that a shift toward a more integrated and interdependent global economy is a good thing.
Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company granted 20 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $7 per share on the grant date. Required: 1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2022.
Answer:
See below
Explanation:
1. Total compensation pertaining to the restricted shares
= Fair value per share × Shares granted
= $7 × 20,000,000
= $140,000,000
Therefore, the total compensation cost pertaining to the restricted shares is $140,000,000
2. Journal entries as at December 31, 2021 (in million dollars)
Dr Compensation expense ($140,000,000 ÷ 2 years) $70
Cr Paid- in capital - restricted stock $70
Journal entries as at December 31, 2022 (in million dollars)
Dr Compensation expense ($140,000,000 ÷ 2 years) $70
Cr Paid in capital - restricted stock $70
Dr Paid in capital restricted stock $140
Cr Common stock (20 million shares × $1 par) $20
Cr Paid in capital in excess of par (remainder) $120
Why is compound interest preferable to simple interest?
Compound interest pays at least double the interest on the principal
Compound interest is paid by the week or by the month, not only on
O Compound interest is based on the entire principal, not just a percer
O Compound interest pays interest on the principal and the interest ea
Answer:
Compound Interest, when it comes to investing, compound interest is better since it allows funds to grow at a faster rate than they would in an account with a simple interest rate. Compound interest comes into play when you're calculating the annual percentage yield.
Explanation:
I hope this helped a lot bro. Hope you make a 100 on your test or quiz. Can I get brainiest.
Answer:
D.) Compound interest pays interest both on the principal and the interest earned in each period.
Explanation:
On Edg
Job Order Cost Accounting Entries for a Service Business Media Connect Inc. provides advertising services for clients across the nation. Media Connect is presently working on four projects, each for a different client. Media Connect accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 40% of media purchases. On April 1, the four advertising projects had the following accumulated costs:
April 1 Balances
First Bank $40,000
Reliable Airlines 18,000
Motel 26 33,000
Blue Mountain Beverages 27,000
During April, Media Connect incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts:
Direct Labor Media Purchases
First Bank $115,000 $ 480,000
Reliable Airlines 84,000 320,000
Motel 26 110,000 200,000
Blue Mountain Beverages 125,000 300,000
At the end of April, both the First Bank and Reliable Airlines campaigns were completed. The costs of completed campaigns are added to the cost of services account. Determine each of the following for the month:
a. Direct labor costs.
b. Media purchases.
c. Overhead applied.
d. Cost of completed First Bank and Reliable Airlines campaigns.
Total Costs
First Bank $
Reliable Airlines $
Answer:
A. $434,000
B. $1,300,000
C. $520,000
D. First bank $827,000
Reliable Airlines $550,000
Explanation:
A. Calculation to determine the Direct labor costs.
Direct Labor
First Bank $115,000
Reliable Airlines 84,000
Motel 26 110,000
Blue Mountain Beverages 125,000
Total $434,000
B. Calculation to determine the Media purchases
Media Purchases
First Bank $ 480,000
Reliable Airlines 320,000
Motel 26 200,000
Blue Mountain Beverages 300,000
Total $1,300,000
C. Calculation to determine the Overhead applied
Overhead applied=$1,300,000*40%
Overhead applied=$520,000
D. Calculation to determine the Total cost for First bank and Reliable Airlines
First bank=$40,000+$115,000+$ 480,000+($ 480,000*40%)
First bank=$40,000+$115,000+$ 480,000+$192,000
First bank=$827,000
Reliable Airlines=$18,000+84,000+320,000+(320,000*40%)
Reliable Airlines=$18,000+84,000+320,000+$128,000
Reliable Airlines=$550,000
Therefore Total cost for is First bank $827,000 and Reliable Airlines is $550,000
11
Jeanne Crawford had $10,675.50 deposited in an account paying 6.5% interest compounded semiannually.
a) What is the amount in her account 2 years later?
b) What is the compound Interest?
Answer and Explanation:
The computation is shown below:
a. The amount in 2 years later is
As we know that
Amount = Principal × (1 + rate)^time period
= $10,675.50 × (1 + 6.5% ÷ 2)^2× 2
= $10,675.50 × (1 + 0.03125)^4
= $10,675.50 × 1.130982
= $12,073.80
b. Now the compound interest is
= Final Amount - principal amount
= $12,073.80 - $10,675.50
= $1,398.30
The above formulas should be applied
All of the following are cash and cash equivalents, EXCEPT *
Savings deposit
Money maker placement
Cash to be paid by a debtor
Currency that is legal tender
Answer:
money maker placements
Trew Company plans to issue bonds with a face value of $909,000 and a coupon rate of 6 percent. The bonds will mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar.)
Determine the issuance price of the bonds assuming an annual market rate of interest of 8.5 percent.
Issuance price
Answer:
$757,943
Explanation:
face value = $909,000
maturity = 10 years x 2 = 20 periods
coupon rate = 6% / 2 = 3%
coupon = $27,270
YTM = 8.5% / 2 = 4.25%
using a financial calculator, the PV of the bonds = $757,943
Dr Cash 757,943
Dr Discount on bonds payable 151,057
Cr Bonds payable 909,000
The following information describes production activities of Mercer Manufacturing for the year.
Actual direct materials used 31,000 1bs. at $5.80 per lb
Actual direct labor used 10,600 hours for a total of $217,300
Actual units produced . 63,000
Budgeted standards for each unit produced are 0.50 pounds of direct material at $5.75 per pound and 10 minutes $21.50 per hour.
AQ = Actual Quantity
SQ=Standard Quantity
AP =Actual Price
SP =Standard Price
AH =Actual Hours
SH= Standard Hours
AR= Actual Rate
SR= Standard Rate
(1) Compute the direct materials price and quantity variances
(2) Compute the direct labor rate and efficiency varian rect labor rate and efficiency variances.
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= (5.75 - 5.8)*31,000
Direct material price variance= $1,550 unfavorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (63,000*0.5 - 31,000)*5.75
Direct material quantity variance= $2,875 favorable
To calculate the direct labor rate and efficiency variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (10,500 - 10,600)*21.5
Direct labor time (efficiency) variance= $2,150 unfavorable
Standard quantity= (10/60)*63,000= 10,500 hours
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (21.5 - 20.5)*10,600
Direct labor rate variance= $10,600 favorable
Actual rate= 217,300 / 10,600= $20.5
Mervon Company has two operating departments: Mixing and Bottling. Mixing has 330 employees and Bottling has 220 employees. Indirect factory costs include administrative costs of $192,000. Administrative costs are allocated to operating departments based on the number of workers. Determine the administrative costs allocated to each operating department.
Answer:
Mixing= $115,199.7
Bottling= $76,799.8
Explanation:
First, we need to calculate the allocation rate for Administrative costs:
Allocation rate= total estimated costs for the period/ total amount of allocation base
Allocation rate= 192,000 / (330 + 220)
Allocation rate= $349.09 per employee
Now, we can allocate costs:
Mixing= 330*349.09= $115,199.7
Bottling= 220*349.09= $76,799.8
You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.
Inventory, July 1 $41,010
Purchases-goods placed in stock July 1-15 90,490
Sales revenue-goods delivered to customers (gross) $119,400
Sales returns-goods returned to stock $3,960
Your client reports that the goods on hand on July 16 cost $33,210, but you determine that this figure includes goods of $7,170 received on a consignment basis. Your past records show that sales are made at approximately 40% over cost. Duncan's insurance covers only goods owned.
Compute the claim against the insurance company.
Answer:
$23,003
Explanation:
Computation for the claim against the insurance company.
Using this formula
Claim against insurance company = Total cost of goods available for sales - Cost of goods sold - Owned inventory on hand on July 16
Let plug in the formula
Claim against insurance company= ($41,010 + 90,490) - [($119,400 - $3,960)*100/140)] - ($33,210- $7,170)
Claim against insurance company= $131,500 - $82,457 - $26,040
Claim against insurance company= $23,003
Therefore the claim against the insurance company is $23,003
Which transaction involves a good?
A. Selling desk chairs
B. Washing windows
C. Providing technology support
D. Displaying an advertisement
Answer:
Providing technology support
Answer:
Explanation:
selling desk chairs, just got it right
Alex is an avid ornithologist and bird-watcher. He received a tweet from a colleague that the "pink-tufted warbler," a rare and exotic bird, was sighted only ten miles away from his workplace in a remote area. Disregarding the signs indicating "Private Road" and "Private Property", Alex drives to the site.
Answer:
trespass to land
Explanation:
At December 31, 2021 and 2020, P Co. had 58,000 shares of common stock and 5,800 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $620,000. For 2021, basic earnings per common share amounted to: (Round your answer to 2 decimal places.)
Answer:
$10.19 per share
Explanation:
With regards to the above, the basic earnings per common share is seen below;
Preferred dividend = Shares × Par value × Shares percentage
= 5,800 × $100 × 5%
= $29,000
So, basic earning per share = (Net income - Preferred dividend) ÷ Common shares
= ($620,000 - $29,000) ÷ 58,000
= $10.19 per share
Therefore, for 2021, basic earnings per common share amounted to $10.19
Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $158,000 Credit sales, $458,000 Selling and administrative expenses, $118,000 Sales returns and allowances, $38,000 Gross profit, $498,000 Accounts receivable, $185,000 Sales discounts, $22,000 Allowance for doubtful accounts credit balance, $2,000 Flyer estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded
Answer:
$8,870
Explanation:
Calculation to determine the balance in the allowance for doubtful accounts after bad debt expense is recorded
Using this formula
Balance in the allowance for doubtful accounts=
(Credit sales* Percentage of Credit sales)+Allowance for doubtful accounts credit balance
Let plug in the formula
Balance in the allowance for doubtful accounts= ($458,000*1.5%)+$2,000
Balance in the allowance for doubtful accounts=$6,870+$2,000
Balance in the allowance for doubtful accounts=$8,870
Therefore the balance in the allowance for doubtful accounts after bad debt expense is recorded will be $8,870
location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of 0.50, transportation cost, which has a weight of 0.40, and labor cost, which has a weight of 0.10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:____.
a. build a plant in both cities.
b. be indifferent between these locations.
c. choose Boston.
d. choose Akron.
e. reject both locations.
Answer:
e. reject both locations.
Explanation:
Akron's weighted score:
supply of raw materials = 0.5 x 60 = 30
transportation costs = 0.4 x 80 = 32
labor costs = 0.1 x 70 = 7
total composite score = 69
Boston's weighted score:
supply of raw materials = 0.5 x 70 = 35
transportation costs = 0.4 x 50 = 20
labor costs = 0.1 x 90 = 9
total composite score = 64
An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery costs $400 today and is expected to last for 5 years with no salvage value. Straight line depreciation will be used. Project inflows connected with the new machinery will begin in one year and are expected to be $200 each year for 5 consecutive years and project outflows will also begin in one year and are expected to be $90 each year for 5 consecutive years. The corporate tax rate is 32% and the required rate of return is 9%. Calculate the project's net present value.
$-9.48
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(400 - 0) / 5 = 80
(200 - 90- 80) x (1 - 0.32) + 80 = $100.40
Cash flow in year 0 = $-400
Cash flow each year from year 1 to 5 = $100.40
I = 9%
NPV = $-9.48
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Vaughn Company manufactures equipment. Vaughn’s products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Vaughn has the following arrangement with Winkerbean Inc.
Winkerbean purchases equipment from Vaughn for a price of $920,000 and contracts with Vaughn to install the equipment. Vaughn charges the same price for the equipment irrespective of whether it does the installation or not. The cost of the equipment is $644,000.
Winkerbean is obligated to pay Vaughn the $920,000 upon the delivery and installation of the equipment. Vaughn delivers the equipment on June 1, 2020, and completes the installation of the equipment on September 30, 2020. The equipment has a useful life of 10 years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately.
Assuming Vaughn does not have market data with which to determine the standalone selling price of the installation services. As a result, an expected cost plus margin approach is used. The cost of installation is $35,700; Vaughn prices these services with a 30% margin relative to cost.
How should the transaction price of $920,000 be allocated among the service obligations?
Equipment $
Installation $
Answer: See explanation
Explanation:
The transaction price of $920,000 should be allocated among the service obligations as thus:
For Equipment:
= Fair value of equipment / Total fair value × Transaction price
= (920000 / (920000 + 276000) × 920000
= (920000 / 1196000) × 920000
= $707692
Installation:
= Fair value of installation / Total fair value × Transaction price
= 276000 / (920000 + 276000) × 920000
= (276000 / 1196000) × 920000
= $212308