Answer:
sales might decrease by $287,000 - $189,000 = $98,000 and the company will still break even
Explanation:
gross profit = net income + fixed costs = $35,280 + $68,040 = $103,320
COGS = total sales - gross profit = $287,000 - $103,320 = $183,680
contribution margin ratio = $103,320 / $287,000 = 36%
break even point in $ = $68,040 / 36% = $189,000
sales might decrease by $287,000 - $189,000 = $98,000 and the company will still break even
For example, in 2012, each of the 80 billion pieces of advertising brought 21 cents in revenue, compared to 42 cents for first-class mail. Which word could best replace revenue in this sentence
Answer:
Returns
Explanation:
Returns on an investor is the amount of profit or gain an outlay of cash is able to bring at the end of a period.
Rate of returns on invested funds is used as a yardstick by potential investors in deciding which enterprise to fund.
In the given instance where each of the 80 billion pieces of advertising brought 21 cents in revenue, a better replacement for the word revenue is return.
So returns of funds invested on each piece of advertising is 21 cents.
Answer: income
Explanation:
synonym for revenue
Waterway Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2020, is as follows.
WATERWAY BEAUTY CORPORATION
Income Statement
For the Year Ended December 31, 2020
Sales $79,000,000
Cost of goods sold
Variable $32,390,000
Fixed 8,750,000 41,140,000
Gross margin $37,860,000
Selling and marketing expenses
Commissions $16,590,000
Fixed costs 10,607,200 27,197,200
Operating income $10,662,800
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur additional fixed costs of $9,480,000.
A. Calculate the company’s break-even point in sales dollars for the year 2017 if it hires its own sales force to replace the network of agents.
B. Calculate the degree of operating leverage at sales of $78,800,000 if (1) Bonita Beauty uses sales agents, and (2) Bonita Beauty employs its own sales staff.
C. Calculate the estimated sales volume in sales dollars that would generate an identical net income for the year ending December 31, 2017, regardless of whether Bonita Beauty Corporation employs its own sales staff and pays them an 10% commission or continues to use the independent network of agents.
Answer:
a) total sales = $79,000,000
variable costs:
COGS $32,390,000commissions $7,110,000total variable costs = $39,350,000contribution margin ratio = $39,350,000 / $79,000,000 = 0.5
total fixed costs = $8,750,000 + $10,607,200 + $9,480,000 = $28,837,200
break even point = $28,837,200 / 0.5 = $57,674,400
b) one of the formulas that we can use to calculate the degree of operating leverage is:
operating leverage = fixed costs / total costs
1) total costs using sales agents = $8,750,000 + $10,607,200 + ($78,800,000 x 0.62) = $68,213,200
total fixed costs = $8,750,000 + $10,607,200 = $19,357,200
degree of operating leverage = $19,357,200 / $68,213,200 = 28.38%
2) total costs employing its own sales staff = ($78,800,000 x 0.5) + $8,750,000 + $10,607,200 + $9,480,000 = $68,237,200
total fixed costs = $28,837,200
degree of operating leverage = $28,837,200 / $68,237,200 = 42.26%
c) when the sales level is $79,000,000, the operating income for both alternatives is $10,662,800
($79,000,000 x 0.5) - $28,837,200 = $10,662,800
($79,000,000 x 0.38) - $19,357,200 = $10,662,800
Answer:
A or D
Explanation:
Crow earned $585.15 during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of $4,733.20. Round your answers to the nearest cent. a. The amount of OASDI taxes to withhold from Crow's pay is $ . b. The amount of HI taxes to withhold from Crow's pay is
Answer:
A. $36.28
B. $8.48
Explanation:
a. Calculation for the amount of OASDI taxes to withhold from Crow's pay
OASDI taxes is 6.2%
Hence,
OASDI taxes to withhold = 585.15*0.62
OASDI taxes to withhold = $36.28
Therefore the OASDI taxes to withhold from Crow's pay is $36.28
b. Calculation for the amount of HI taxes to withhold from Crow's pay
HI taxes is 1.45%
Hence,
HI taxes to withhold =585.15*0.0145
HI taxes to withhold=$8.48
Therefore HI taxes to withhold from Crow's pay is $8.48
Discuss the types of financial statements and their purpose.
Answer:
They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity. Balance sheets show what a company owns and what it owes at a fixed point in time. Income statements show how much money a company made and spent over a period of time.
Explanation:
Farley Inc. has perpetual preferred stock outstanding that sells for $50 a share and pays a dividend of $5.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places.
Answer:
10%
Explanation:
The Required Rate of return is the minimum acceptable return on investment sought by individuals or companies considering an investment opportunity.
Dividend = $5
Market price = $50
Required rate of return = Dividend / Market price
Required rate of return = 5/50*100
Required rate of return = 10%
The number of people or subordinates that a manager effectively controls and directs is called the manager's span of:
Answer: Span of Control
Explanation:
A Manager's span of control refers to all the subordinates that report to that manager. The manager therefore effectively controls and directs them and as such is answerable for them.
Spans of Control are different depending on the type of company it is. A manager with a lot of people in their span of control is said to have a Wide span of control and the reverse is a Narrow Span of control.
A very important part of management is determining the largest number of subordinates that can be in a span of control without overwhelming the manager.
Which best describes the difference in the duties of restaurant employees who work inside and outside a kitchen?
O Kitchen workers clear tables and wash dishes, while the other restaurant employees take orders and prepare and
cook the food.
O Kitchen workers answer phones and handle advertising, while the other restaurant employees prepare drinks and
set tables.
O Kitchen workers greet guests and take orders, while the other restaurant employees prepare and cook food and
clean dishes.
o Kitchen workers prepare and cook food and clean dishes, while the other restaurant employees greet guests and
take orders
Answer:
Kitchen workers prepare and cook food and clean dishes, while the other restaurant employees greet guests and take orders.
Explanation:
Kitchen workers prepare and cook food and clean dishes, while the other restaurant employees greet guests and take orders is the best describes the difference in the duties of restaurant employees who work inside and outside a kitchen. Hence, option D is correct.
What are duties and responsibilities of restaurant staff?The tasks and obligations of a waiter or waitress include greeting and seating customers, collecting their orders, properly relaying them to the kitchen, and memorizing the menu in order to suggest additional appetizers, desserts, or drinks.
The duties of an assistant manager in a restaurant range from scheduling shifts to taking care of the needs of the personnel. They must also guarantee that the establishment complies with all relevant rules and encourages a pleasant dining experience with top-notch customer service.
promptly, expertly, and amiably handled customers' orders for food and beverages. Good menu knowledge was used to help clients and, when possible, upsell menu items. Ensured that everything was kept orderly and clean at all times, including the placement of all tables and silverware.
Thus, option D is correct.
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If the expected sales volume for the current period is 9,000 units, the estimated the beginning inventory is 200 units and the desired ending inventory is 300 units, calculate the production budget for the current period.Group of answer choices9,0008,9008,7009,100
Answer:
Production= 9,100 units
Explanation:
Giving the following information:
Sales= 9,000 units
Beginning inventory= 200 units
Desired ending inventory= 300 units
To calculate the budgeted production for the period, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 9,000 + 300 - 200
Production= 9,100 units
Chance company had two operating divisions, one manufacturing farm equipment and other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on Sept. 1, 2016, the company adopted a plan to sell the assets of the division.
The actual sale was completed on Dec. 15, 2016, at the price of $600,000. The book value of the division's assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. The division incurred a before-tax operating loss from operations of $130,000 from the beginning of the year through Dec. 15. The income tax rate is 40%. Chances after-tax income from its continuing operations is $350,000.
Required:
Prepare an income statement for 2016 beginning with income from continuing operations. Include appropriate EPS disclosures assuming that 100,000 shares of common stock were outstanding throughout the year.
Answer:
-21,000
Explanation:
We can calculate the net income by Adding/deducting the gain/loss on the discontinued operations from the gain/loss of the continuing operations.
INCOME STATEMENT
Income from continuing Operations $350,000
Discontinued Operations
Loss from discontinued operations(w) -530,000
Income tax benefit $159,000
(400,000+130,000) x 30%
Net Income -21,000
Earning per share
Continuing Operations $3.5
(350,000/100,000)
Discontinued Operations -$5.3
(-530,000/100,000)
Net Income -$1.8
Working
Sale value of the segment $600,000
Book value of the segment ($1,000,000)
loss on sale of segment -$400,000
Loss from the Operations of the segment -$130,000
Loss on discontinued operation -$530,000
Which represents the best way to compose experience statements? a. Input 35+ accounts receivable using QuickBooks Prepared monthly billing statements and mailed them to customers Answered phones in busy office, referred customer billing questions to appropriate staff, and wrote e-mails to vendors b. Used QuickBooks to input accounts recievable Prepare monthly billing statements for customers Conducted general office duties such as phone inquiries, referring customers to proper staff, and I also wrote e-mails to vendors c. Responsible for inputting data for more than 35 accounts into QuickBooks Experienced with creating monthly billing statements to mail to customers As receptionist, I answered customer billing questions, wrote e-mails to vendors Skip
Full question read.
"You will graduate with a BA in accounting from the University of Texas in Austin in a few weeks. And saw an ad for a position in your hometown of San Antonio that matches your skill set. Your experience in your current job, in which you counted cash from various establishments around campus, and prepared daily deposit slips matches one of the full-time jobs requirements. Before that, you performed accounts receivable functions at a large construction company. Another requirement named in the job ad. You decide to apply for the position. Your task. Create a resume tailored to the position. "
This well-written objective customized for the job opening, includes strategic key words for applicant tracking systems and focuses on how the candidate can contribute to the organization. This bulleted list of employment history, most appropriately quantifies the candidates accomplishments.
Which represents the best way to compose experience statements?
Answer:
C. Responsible for inputting data for more than 35 accounts into QuickBooksExperienced with creating monthly billing statements to mail to customersAs receptionist, I answered customer billing questions, wrote e-mails to vendorsExplanation:
Remember, we are told that "strategic key words for applicant tracking systems..." would be used by the organization to determine the best candidates. It, therefore means that accurate spelling would make an experience statement compelling and detectable by the tracking system.
From the above statements, under these conditions, option c appears to be the best way to compose experience statements.
If a specific economy has extra capital resources available,
be able to produce top-quality goods and services.
continually look to expand and invest.
be able to produce more goods and services needed and wanted by society.
have additional labor available to focus on production.
this
Answer: A
Be able to produce top-quality goods and services
If a specific economy has extra capital resources available, be able to produce more goods and services needed and wanted by society.
What is an economy?An economy is a region where products and services are produced, distributed, traded, and consumed. It is generally understood to be a social domain that places an emphasis on the behaviors, discourses, and tangible manifestations connected to the creation, utilization, and management of finite resources.
One's culture, values, education, technological advancement, history, social organization, political structure, legal system, and natural resources are all major determinants of an economy's processes.
These elements determine the parameters and conditions under which an economy operates in addition to providing background and content. In other words, the economic realm is a social domain made up of connected human behaviors and exchanges that cannot exist independently.
Individuals, companies, organizations, or governments all qualify as economic actors. When two persons or organizations agree on the value or price of the good or service being exchanged, which is typically stated in a particular currency, an economic transaction takes place.
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Carla VistaInc. leased a new crane to Martinez Construction under a 5-year, non-cancelable contract starting January 1, 2020. Terms of the lease require payments of $45,500 each January 1, starting January 1, 2020. The crane has an estimated life of 7 years, a fair value of $220,000, and a cost to Carla Vista of $220,000. The estimated fair value of the crane is expected to be $45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Carla Vista and Martinez adjust and close books annually at December 31. Collectibility of the lease payments is probable. Martinez’s incremental borrowing rate is 8%, and Carla Vista’s implicit interest rate of 8% is known to Martinez.
Required:
a. Identify the type of lease involved and give reasons for your classification. Discuss the accounting treatment that should be applied by both the lessee and the lessor.
b. Prepare all the entries related to the lease contract and leased asset for the year 2020 for the lessee and lessor, assuming the following amounts:
1. Insurance $500.
2. Taxes $2,000.
3. Maintenance $650.
4. Straight-line depreciation and salvage value $15,000.
c. Discuss what should be presented in the balance sheet, the income statement, and the related notes of both the lessee and the lessor at December 31, 2020.
Answer:
Lessee's Entries:
Rent expense (Dr.) $45,500
Cash (Cr.) $45,500
Lessor's Entries:
1. Property Tax expense (Dr.) $2,000
Maintenance and Repair Expense (Dr.) $650
Insurance Expense (Dr.) $500
Accounts Payable (Cr.) $3,150
2. Depreciation Expense (Dr.) $ 29,285
Accumulated Depreciation (Cr.) $29,285
3.Cash (Dr.) $45,500
Rent Revenue (Cr.) $45,500
Explanation:
The lease is considered as an operating lease as it does not have bargain purchase option and renewal options. The property ownership is not transferred in this lease.
Depreciation expense:
[ Cost - Salvage Value ] / 7
220,000 - 15000 / 7
Assume you make monthly deposits of $200 starting one month from now into an account that pays 6% per year, compounded semiannually. If you want to know how much you will have after four years, the value of i you should use in the F/A factor, assuming no interperiod interest, is
Answer:
3%
Explanation:
the account pays a 6% annual rate, but since it is compounded semiannually, you must divide it by 2 = 6% / 2 = 3%
since no interperiod interest is paid, the semiannual payment = $200 x 6 = $1,200
the future value = $1,200 x 8.8923 (FV annuity factor, 3%, 8 periods) = $10,670.76
Blago Wholesale Company began operations on January 1, 2017, and uses the average cost method in costing its inventory. Management is contemplating a change to the FIFO method in 2018 and is interested in determining how such a change will affect net income. Accordingly, the following information has been developed:
2017 2018
Final inventory:
Average cost $150,000 $255,000
FIFO 160,000 270,000
Condensed income statements for Blago Wholesale appear below:
2017 2018
Sales $1,000,000 $1,200,000
Cost of goods sold 600,000 720,000
Gross profit 400,000 480,000
Selling, general, and administrative 250,000 275,000
Net income $150,000 $205,000
Required:
Based on this information, what would 2018 net income be after the change to the FIFO method?
Answer:
Blago Wholesale Company
New Net income for 2018 = $220,000
Explanation:
Data and Calculations:
Final inventory: 2017 2018
Average cost $150,000 $255,000
FIFO 160,000 270,000
Difference $10,000 $15,000
2017 2018
Sales $1,000,000 $1,200,000
Cost of goods sold 600,000 720,000
Gross profit 400,000 480,000
Selling, general, and
administrative 250,000 275,000
Net income $150,000 $205,000
2018 Net Income after the change to the FIFO method:
Cost of goods sold (weighted average) 720,000
less adjustment for change of method 15,000
Adjusted cost of goods sold 705,000
Income Statement after the change
Sales $1,200,000
Cost of goods sold 705,000
Gross profit 495,000
Selling, general, and
administrative 275,000
Net income $220,000
Statz Company had sales of $1,900,000 and related cost of goods sold of $1,100,000 for its first year of operations ending December 31, 20Y1. Statz provides customers a refund for any returned or damaged merchandise. At the end of 20Y1, Statz Company estimates that customers will request refunds for 1.7% of sales and estimates that merchandise costing $12,000 will be returned. Assume that on February 3, 20Y2, Buck Co. returned merchandise with an invoice amount of $5,300 for a cash refund. The returned merchandise originally cost Statz Company $3,200.
Required:
a. Journalize the adjusting entries on December 31 to record the expected customer returns.
b. Journalize the entries to record the returned merchandise and cash refund to Buck Co. on February 3.
Answer:
pasensya na di ko alam ang sagot
Consider a project to supply Detroit with 20,000 tons of machine screws annually for automobile production. You will need an initial $3,000,000 investment in threading equipment to get the project started; the project will last for four years. The accounting department estimates that annual fixed costs will be $850,000 and that variable costs should be $450 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the four-year project life. It also estimates a salvage value of $280,000 after dismantling costs. The marketing department estimates that the automakers will let the contract at a selling price of $600 per ton. The engineering department estimates you will need an initial net working capital investment of $300,000. You require a return of 18 percent and face a marginal tax rate of 38 percent on this project.
Required:
a. What is the estimated OCF for this project?
b. Suppose you believe that the accounting department’s initial cost and salvage value projections are accurate only to within ±15 percent; the marketing department’s price estimate is accurate only to within ±10 percent; and the engineering department’s net working capital estimate is accurate only to within ±5 percent. What is your worst-case and best-case scenario for this project?
Answer:
a) expected revenue = 20,000 tons x $600 = $12,000,000 per year
initial investment = $3,000,000 + $300,000 = $3,300,000
contribution margin per unit = $600 - $450 = $150
total contribution margin = $150 x 20,000 = $3,000,000
annual fixed costs = $850,000
depreciation expense per year = $750,000
tax rate = 38%
required return rate = 18%
after tax salvage value = $280,000 x (1 - 38%) = $173,600
NCF₀ = -$3,300,000
NCF₁ = [($3,000,000 - $850,000 - $750,000) x 0.62] + $750,000 = $1,618,000
NCF₂ = $1,618,000
NCF₃ = $1,618,000
NCF₄ = $1,618,000 + $300,000 + $173,600 = $2,091,600
NPV = $1,296,797.61
IRR = 36.36%
b) our best case scenario:
expected revenue = 20,000 tons x $660 = $13,200,000 per year
initial investment = $2,550,000 + $285,000 = $2,835,000
contribution margin per unit = $660 - $450 = $210
total contribution margin = $210 x 20,000 = $4,200,000
annual fixed costs = $850,000
depreciation expense per year = $637,500
tax rate = 38%
required return rate = 18%
after tax salvage value = $322,000 x (1 - 38%) = $199,640
NCF₀ = -$2,835,000
NCF₁ = [($4,200,000 - $850,000 - $637,500) x 0.62] + $637,500 = $2,319,250
NCF₂ = $2,319,250
NCF₃ = $2,319,250
NCF₄ = $2,319,250 + $285,000 + $199,640 = $2,803,890
NPV = $3,655,445.13
IRR = 74.34%
our worst case scenario:
expected revenue = 20,000 tons x $540 = $10,800,000 per year
initial investment = $3,450,000 + $315,000 = $3,765,000
contribution margin per unit = $540 - $450 = $90
total contribution margin = $90 x 20,000 = $1,800,000
annual fixed costs = $850,000
depreciation expense per year = $862,500
tax rate = 38%
required return rate = 18%
after tax salvage value = $238,000 x (1 - 38%) = $147,560
NCF₀ = -$3,765,000
NCF₁ = [($1,800,000 - $850,000 - $862,500) x 0.62] + $862,500 = $916,750
NCF₂ = $916,750
NCF₃ = $916,750
NCF₄ = $916,750 + $315,000 + $147,560 = $1,379,310
NPV = -$1,060,302.54
IRR = 3.56%
Champion manufactures winter fleece jackets for sale in the United States. Demand for jackets during the season is normally distributed, with a mean of 20,000 and a standard deviation of 10,000. Each jacket sells for $60 and costs $30 to produce. Any leftover jackets at the end of the season are sold for $25 at the year-end clearance sale. Holding jackets until the year-end sale adds another $5 to their cost. A recent recruit has suggested shipping leftover jackets to South America for sale in the winter there rather than running a clearance. Each jacket will fetch a price of $35 in South America, and all jackets sent there are likely to sell. Shipping costs add additional $5 to the cost of any jacket sold in South America, along with the $5 for holding jackets till the end of the season.
Required:
a. Would you recommend the South American option? Support your decision with calculations.
b. How will the South American option affect production and profitability at Champion?
c. On average, how many jackets will Champion ship to South America each season? (Note: you have already calculated this value in order to get the expected profit for the South American option.
Answer:
a. South American generates higher service level.
b. The profitability is higher in South American Option.
c. 19,269 jackets
Explanation:
Particulars : Current Policy ; South American Option
Anticipate demand : 20,000 ; 20,000
Standard deviation : 10,000 ; 10,000
Unit costs : $30 ; $30
Sales price : $60 ; $60
Disposal value : $25 ; $30
Inventory holding cost : $5 ; $5
South America Sales Price : 0 ; $35
Shipping Costs : 0 ; $5
Salvage Value : $20 ; $25
Cost of under stock : $30 ; $30
Cost of overstock : $10 ; $5
Optimal cycle service level : 0.7500 ; 0.8571
Optimal production size : 26,745 ; 30,676
Expected profits : $472,889 ; $521,024
Expected Overstock 8,236 , 11,407
Minion, Inc., has no debt outstanding and a total market value of $211,875. Earnings before interest and taxes, EBIT, are projected to be $14,300 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 35 percent lower. The company is considering a $33,900 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,500 shares outstanding. Assume the company has a tax rate of 21 percent.
Required:
a. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued.
b. Calculate the percentage changes in EPS when the economy expands or enters a recession.
c. Calculate earnings per share, EPS, under each of the three economic scenarios after the recapitalization.
d. Calculate the percentage changes in EPS when the economy expands or enters a recession assuming recapitalization has occurred.
Answer:
EPS and percentage change is calculated below
Explanation:
Earnings per share (EPS) is the monetary value of earnings per outstanding share of common stock for a company.
a.EPS
Recession Normal Expansion
EBIT 9,295 14,300 17,160
Less: Interest 0 0 0
Earnings before taxes 9,295 14,300 17,160
Less: Taxes (1,952) (3,003) (3,604 )
Net Income 7,343 11,297 13,556
Number of Shares 7,500 7,500 7,500
EPS 0.979073 1.506267 1.80752
b. Percentage change
Recession = (2.683-3.833)/3.833
Recession = -35.00%
Expansion 20.00%
c. EPS
Recession Normal Expansion
EBIT 9,295 14,300 17,160
Less: Interest (2034) (2034) (2034 )
Earnings before taxes 7,261 12,266 15,126
Less: Taxes (1,525) (2,576) (3,176 )
Net Income 5,736 9,690 11,950
Number of Shares 6,300 6,300 6,300
EPS 0.91 1.53 1.89
d. Percentage change
Recession = (2.683-3.833)/3.833
Recession = -40.80%
Expansion 23.32%
Value per share = 211875/7500 = $28.25
Number of shares bought back = 33900/28.25 = 1200 shares
What are some of the government requirements imposed on a public corporation that are not imposed on a private, closely held corporation? Discuss pros and cons of each
Answer:
The government (the SEC) imposes several regulations on publicly traded corporations and requires mandatory reporting regarding their financial position, compensation to key employees, auditing and accounting procedures, conflicts of interest between upper management and shareholders, operating results, etc.
The pros of that large amount of reports is that it makes management accountable for what happens and it makes their job more transparent.
The downside is that they are expensive and time consuming.
On the other hand, privately held corporations decide what to disclose to the general public or the government. The IRS is something that cannot be avoided, but the SEC and its scrutiny is avoided.
Other advantages of publicly held corporations:
a publicly held corporation should be able to raise larger amounts of capitalsince the number of owners is larger, debt per ownership stake is generally much lowertop management tends to be more independent and suffer less pressures from individual stockholderspublicly trades corporations tend to receive more publicity and are better knownthey also attract more talentOther disadvantages of publicly held corporations:
publicly held corporation have a lot of owners and they all have the right to be informed about what happens within the corporation and vote to elect the board of directorssome decisions require that shareholders vote on them, e.g. mergersstock prices suffer from market riskgoing public is also expensiveUse the five transactions for Martin Rentals described below to answer the questions that follow Transactions:
Oct. 1 Martin purchases 2 new saws on credit at $375 each; the saws are added to Martin's rental fleet; payment is due in 30 days.
8 Martin accepts advance deposits for tool rentals of $75.15 Martin receives a $150 bill for electricity provided by Local Electric Company; payment is due in 30 days.
20 Customers are charged $750 by Martin for tool rentals; payment is due from customers in 30 days.
31 Payments of $500 are received by Martin from customers billed for rentals on October 20.
Answer:
I couldn't find the questions that should follow these transactions, the only requirement that I found on similar questions was to journalize them:
Oct. 1 Martin purchases 2 new saws on credit at $375 each; the saws are added to Martin's rental fleet; payment is due in 30 days.
Dr Equipment 750
Cr Accounts payable 750
8 Martin accepts advance deposits for tool rentals of $75.
Dr Cash 75
Cr Unearned revenue 75
15 Martin receives a $150 bill for electricity provided by Local Electric Company; payment is due in 30 days.
Dr Electricity expense 150
Cr Accounts payable 150
20 Customers are charged $750 by Martin for tool rentals; payment is due from customers in 30 days.
Dr Accounts receivable 750
Cr Service revenue 750
31 Payments of $500 are received by Martin from customers billed for rentals on October 20.
Dr Cash 500
Cr Accounts receivable 500
Presented below is the trial balance of Sage Corporation at December 31, 2020.
Debit Credit
Cash $201,720
Sales $8,101,160
Debt Investments (trading) (at cost, $145,000) 154,160
Cost of Goods Sold 4,800,000
Debt Investments (long-term) 303,720
Equity Investments (long-term) 281,720
Notes Payable (short-term) 91,160
Accounts Payable 456,160
Selling Expenses 2,001,160
Investment Revenue 67,870
Land 261,160
Buildings 1,044,720
Dividends Payable 140,720
Accrued Liabilities 97,160
Accounts Receivable 436,160
Accumulated Depreciation-Buildings 152,000
Allowance for Doubtful Accounts 26,160
Administrative Expenses 904,870
Interest Expense 215,870
Inventory 601,720
Gain 84,870
Notes Payable (long-term) 904,720
Equipment 601,160
Bonds Payable 1,004,720
Accumulated Depreciation-Equipment 60,000
Franchises 160,000
Common Stock ($5 par) 1,001,160
Treasury Stock 192,160
Patents 195,000
Retained Earnings 82,720
Paid-in Capital in Excess of Par 84,720
Totals $12,355,300 $12,355,300
Required:
Prepare a balance sheet at December 31, 2020, for Sage Corporation.
Answer:
Balance sheet at December 31, 2020, for Sage Corporation.
Current Assets
Cash $201,720
Debt Investments (trading) $154,160
Equity Investments (long-term) $281,720
Accounts Receivable $436,160
Allowance for Doubtful Accounts ($26,160)
Inventory $601,720
Total Current Assets $1,649,320
Non-Current Assets
Land $261,160
Buildings $1,044,720
Franchises $160,000
Patents $195,000
Accumulated Depreciation-Buildings ($152,000)
Accumulated Depreciation-Equipment ($60,000)
Total Non-Current Assets $1,448,880
Current Liabilities
Notes Payable (short-term) $91,160
Dividends Payable $140,720
Accrued Liabilities $97,160
Total Current Liabilities $329,040
Non-Current Liabilities
Accounts Payable $456,160
Notes Payable (long-term) $904,720
Bonds Payable $1,004,720
Total Non-Current Liabilities $2,365,600
Stockholder's Equity
Common Stock ($5 par) $1,001,160
Treasury Stock $192,160
Retained Earnings $82,720
Paid-in Capital in Excess of Par $84,720
Total Stockholder's Equity $1,360,760
Some characteristics of the determinants of nominal interest rates are listed as follows. Identify the components (determinants) and the symbols associated with each characteristic:
a. This is the rate for a riskless security that is exposed to changes in inflation.
b. Over the past several years, Germany, Japan, and Switzerland have had lower interest rates than the United States due to lower values of this premium.
c. This is the premium that reflects the risk associated with changes in interest rates for a long-term security.
d. This is the rate for a short-term riskless security when inflation is expected to be zero.
e. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value.
f. This is the premium added as a compensation for the risk that an investor will not get paid in full.
Answer:
a. This is the rate for a risk less security that is exposed to changes in inflation.
Component: Nominal risk free rate
Symbol: rRF
b. Over the past several years, Germany, Japan, and Switzerland have had lower interest rates than the United States due to lower values of this premium.
Component: Inflation premium
Symbol: IP
c. This is the premium that reflects the risk associated with changes in interest rates for a long-term security.
Component: Maturity risk premium
Symbol: MRP
d. This is the rate for a short-term risk less security when inflation is expected to be zero.
Component: Real risk free rate
Symbol: r*
e. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value.
Component: Liquidity risk premium
Symbol: LRP
f. This is the premium added as a compensation for the risk that an investor will not get paid in full.
Component: Default risk premium
Symbol: DRP
The following information is available for two different types of businesses for the Year 1 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses. Sports Clothing is a merchandising business that sells sports clothing to college students.
Data for Hopkins CPAs
Borrowed $90,000 from the bank to start the business.
Provided $60,000 of services to clients and collected $50,000 cash.
Paid salary expense of $32,000.
Data for Sports Clothing
Borrowed $90,000 from the bank to start the business.
Purchased $60,000 inventory for cash.
Inventory costing $26,000 was sold for $50,000 cash.
Paid $8,000 cash for operating expenses.
Required
Prepare an income statement, balance sheet, and statement of cash flows for each of the companies (Statement of Cash Flows only, items to be deducted must be indicated with a negative amount.)
Answer:
Please see attached detailed explanation.
Explanation:
Please find attached detailed preparation of income statement, balance sheet and cash flow statement for the above.
Select the qualitative characteristics for the following statements.
a. Quality of information that permits users to identify similarities in and differences between two sets of economic phenomena. select a qualitative characteristic.
b. Having information available to users before it loses its capacity to influence decisions.
c. Information about an economic phenomenon that has value as an input to the processes used by capital providers to form their own expectations about the future.
d. Information that is capable of making a difference in the decisions of users in their capacity as capital providers.
e. Absence of bias intended to attain a predetermined result or to induce a particular behavior.
Answer:
Options includes the followings: Relevance, Faithful representation, Predictive value, Confirmatory value, Comparability, Completeness, Neutrality, Timeliness.
a. Quality of information that permits users to identify similarities in and differences between two sets of economic phenomena. select a qualitative characteristic.
Qualitative characteristics: Comparability
b. Having information available to users before it loses its capacity to influence decisions.
Qualitative characteristics: Timeliness
c. Information about an economic phenomenon that has value as an input to the processes used by capital providers to form their own expectations about the future.
Qualitative characteristics: Predictive Value
d. Information that is capable of making a difference in the decisions of users in their capacity as capital providers.
Qualitative characteristics: Relevance
e. Absence of bias intended to attain a predetermined result or to induce a particular behavior.
Qualitative characteristics: Neutrality
Marketing by the Numbers: Pricey Sheets
Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more consumers pay almost $3,000 for Frett'e "Tangeri Pizzo king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market and are determining the price at which to sell their sheets directly to consumers online. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long staple organic cotton from India. Given the cost information below, refer to Appendix 2: Marketing by the Numbers to answer the following questions.
Cost/King-size Set
Raw Cotton $28.00
Spinning/Weaving/Dyeing $12,00
Cut/Sew/Finishing $10,00
Material Transportation $3,00
Factory Fee $16,00
Inspection and Import Fees $14,00
Ocean Freight/Insurance $5,00
Warehousing $8,00
Packaging $15,00
Promotion $30,00
Customer Shipping $15,00
10-13 Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed costs of $500,000 and estimates first year sales will be 50,000 sets, determine the price to consumers if the company desires a 40 percent margin on sales.
10-14 If the company decides to sell through retailers instead of directly to consumers online, to maintain the consumer price you calculated in the previous question, at what price must it sell the product to a wholesaler who then sells it to retailers? Assume wholesalers desire a 10 percent margin and retailers get a 20 percent margin, both based on their respective selling prices.
Answer:
10-13 : $277
10-14 : $199.40
Explanation:
10-13
therefore Cost per king-size sheet set will be
$28 + $12 + $10 + $3 + $16 + $14 + $5 + $8 + $15 + $30 + $15 = $ 156
First year sales = 50,000 sets
Total cost = $500,000
Average fixed cost = $500,000/50,000 = $10
Total Cost per king-size sheet set = ( cost per king-size sheet )$156 + (Average fixed cost ) $10 = $166
Desired margin on sales = 40%
Let us consider the sale price to be $100x
since the margin is 40% of the sales this means margin = (40/100)*100x = 40x
So, cost price should be= $(100 – 40) = $60x
Also, Cost price = $166
which means : $166 = 60x
hence x = 166 / 60 = 2.77
therefore the sale price = ( 100 * 2.77 ) = $277
10 - 14
The Retailer sells to customers at a price of $277 after buying from the wholesaler
The retailer gets the margin of 20%, therefore the margin of retailer will be = (20/100)*277 = $55.4
Therefore the price at which retailer will buy the sheet set from the wholesaler will be = $277 ( original price ) - ( 20% of $277) $55.4 = $221.60
While the Wholesaler sells the sheet set to the retailer for $221.60 and gets the margin of 10%
hence the margin of the wholesaler = 10%*221.60 = $22.16
Then the wholesaler will get the sheet set at
= $221.6 – $22.16 = $199.40
This the price at which the company will now sell the sheets to the wholesaler
HELP ME PLSSS SOMEONE HELPP ILL GIVE BRAINLIEST
tom sold 3 cars ( a total value of $112,500) in the month of january. it is paid only by commission for its seller. he receives a commission of 7%. what is tom’s salary for the month of january?
Answer:
$7,875
Explanation:
Total car sales in January: $112,500
Commission at the rate of 7%,
Salary for January is :
7 percent of $112,500
=7/100 x $112,500
=0.07 x $112,500
=$7,875
Learning design software, applying to college and creating a website to showcase work are examples of ______ that lead to a career as a graphic artist?
Answer:
Long term goals
Explanation:
goals are later on
Answer:
Long term goals
Explanation:
hopes this helps<3
If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 190 bags to 210 bags, then the price elasticity of demand (by the midpoint method) is:
Answer:Price elasticity of demand = -0.05
Explanation:
Price elasticity of demand using the midpoint method= [tex]\frac{(Q2- Q1)/(Q2+Q1)/2}{(P2- P1)/(P2+P1)/2}[/tex]
where Q =Quantity demanded
P = Price
Price elasticity of demand = ([tex]\frac{(210-190/210+190)/2}{0.90-1.10/ 0.90+1.10)/2}[/tex]
= [tex]\frac{20/400)/2 }{ -0.2/2)/2}[/tex]
0.025/ -0.05 = -0.05
Price elasticity of demand = -0.05
The Price elasticity of demand tells us how much quantity demanded changes in response to a change in price. Here the Demand for a good is inelastic because the PED coefficient is less than one -0.05
Answer:
Elasticity = 0.5
Explanation:
Elasticity is defined as the responsiveness of quantity demanded to changes in price. One of the methods used to calculate it is the midpoint method.
Midpoint method uses average values to calculate the elasticity of demand of a good.
Elasticity = {(Q2 - Q1) ÷ (Q1 + Q2)/2} ÷ {(P2 - P1) ÷ (P1 + P2)/2}
Elasticity = {(210 - 190) ÷ (210 + 190)/2} ÷ {(0.9 - 1.10) ÷ (0.9 + 1.10)/2}
Elasticity = 0.1 ÷ 0.2
Elasticity = 0.5
As CFO for Everything.Com, you are shopping for 5,000 square feet of usable office space for 25 of your employees in Center City, USA. A leasing broker shows you space in Apex Atrium, a 10-story multi-tenanted office building. This building contains 300,000 square feet of gross building area. A total of 45,000 square feet is interior space and is non-rentable. The non-rentable space consists of areas contained in the basement, elevator core, and other mechanical and structural components. An additional 30,000 square feet of common area is the lobby area usable by all tenants. The 5,000 square feet of usable area that you are looking for is on the seventh floor, which contains 28,000 square feet of rentable area, and is leased by other tenants who occupy a combined total of 20,000 square feet of usable space. The leasing broker indicated that base rents will be $30 per square foot of rentable area.
Required:
a. Calculate total rentable area in the building as though it would be rented to one tenant.
b. Calculate the load factor and common area on the seventh floor only.
c. Calculate the rentable area, including the load factor for common areas on the seventh floor and the total rent per square foot that will be paid by Everything.Com for the coming year if it chooses to lease the space.
d. Adjust (b) assuming that the owner adjusts the load factor for other common areas in the building.
e. Calculate total rent per square foot, assuming that adjusted load factors are applied to usable area for both the common areas in the building lobby and on the seventh floor.
Answer and Explanation:
Please find answer and explanation attached
garland mills purchased a certain piece of macinery 3 years ago for $500,000. Its present resale value is $320,000. Assuming that the macine's resale value decreases exponentially, what will it be 4 years from now
Answer:
New value= $80,000
Explanation:
Giving the following information:
Purchase price= $500,000
Current value= $320,000
First, we need to calculate the annual decrease in value:
Total decrease 3 years= 500,000 - 320,000= 180,000
Annual decrease= 180,000/3 = $60,000
Now, the value of the machine 4 years from now:
New value= 320,000 - (60,000*4)
New value= $80,000