Use the information from the balance sheet and income statement below to calculate the following ratios:
a. Current Ratio
b. Acid-test ratio
c. Times interest earned
d. Inventory turnover
e. Total asset turnover
f. Operating profit margin
g. Days in receivables
h. Operating return on assets
i. Debt ratio
j. Fixed asset turnover
k. Return on equity
Balance Sheet ASSETS
Cash $100,000
Accounts receivable 30,000
Inventory 50,000
Prepaid expenses 10,000
Total current assets $190,000
Gross plant and equipment 401,000
Accumulated depreciation (66,000)
Total assets $525,000
LIABILITIES AND OWNERS' EQUITY
Accounts payable $90,000
Accrued liabilities 63,000
Total current liabilities $153,000
Long-term debt 120,000
Common stock 205,000
Retained earnings 47,000
Total liabilities and equity $525,000
Income Statement Sales* $210,000
Cost of goods sold (90,000)
Gross profit $120,000
Selling, general, and
administrative expenses (29,000)
Depreciation expenses (26,000)
Operating profits $65,000
Interest expense (8,000)
Earnings before taxes $57,000
Taxes (11,970)
Net income $45,030
Answer:
a. Current Ratio = current assets / current liabilities = 190,000 / 153,000 = 1.24
b. Acid-test ratio = (current assets - inventory) / current liabilities = (190,000 - 50,000) / 153,000 = 0.92
c. Times interest earned = EBIT / interest expense = 65,000 / 8,000 = 8.13
d. Inventory turnover = COGS / inventory = 90,000 / 50,000 = 1.8
e. Total asset turnover = net sales / total assets = 210,000 / 525,000 = 0.4
f. Operating profit margin = operating income / total sales = 65,000 / 210,000 = 0.31
g. Days in receivables = (accounts receivables / total sales) x 365 = (30,000 / 210,000) x 365 = 52.14 days
h. Operating return on assets = operating income / total assets = 65,000 / 525,000 = 0.12
i. Debt ratio = total liabilities / total assets = 273,000 / 525,000 = 0.52
j. Fixed asset turnover = total sales / fixed assets = 210,000 / 335,000 = 0.63
k. Return on equity = net income / total equity = 45,030 / 252,000 = 0.18
During November, the production department of a process operations system completed and transferred to finished goods 26,000 units that were in process at the beginning of November and 120,000 units that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 45% complete with respect to conversion. At the end of November, 33,000 additional units were in process in the production department and were 100% complete with respect to materials and 65% complete with respect to conversion.
Required:
Compute the number of equivalent units with respect to materials for November using the weighted-average method.
Answer:
Equivalent Units = 179,000
Explanation:
Number of units completed and transferred out = Units in beginning + Units started and completed during the month
= 26,000 + 120,000
= 146,000 units
Equivalent Units = Number of units completed and transferred out + (Additional units in process *Percentage completed)
= 146,000 + 33,000*100%
= 146,000 + 33,000
= 179,000
Therefore, the number of equivalent units using the weighted-average method is 179,000
Cullumber Company has the following balances in selected accounts on December 31, 2020.
Accounts Receivable $0
Accumulated Depreciation—Equipment 0
Equipment 8,000
Interest Payable 0
Notes Payable 10,000
Prepaid Insurance 3,960
Salaries and Wages Payable 0
Supplies 2,200
Unearned Service Revenue 28,000
All the accounts have normal balances. The information below has been gathered at December 31, 2020.
1. Cullumber Company borrowed $11,400 by signing a 9%, one-year note on September 1, 2020.
2. A count of supplies on December 31, 2020, indicates that supplies of $820 are on hand.
3. Depreciation on the equipment for 2020 is $1,200.
4. Cullumber Company paid $3,960 for 12 months of insurance coverage on June 1, 2020.
5. On December 1, 2020, Cullumber collected $28,000 for consulting services to be performed from December 1, 2020, through March 31, 2021. The company had performed 1/4 of the services by December 31.
6. Cullumber performed consulting services for a client in December 2020. The client will be billed $4,200.
7. Cullumber Company pays its employees total salaries of $5,400 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2020.
Required:
Prepare adjusting entries for the seven items described above.
Answer and Explanation:
The adjusting entries are shown below:
1. Interest expense [$11,400 × 9% × 4 ÷ 12] $342
To Interest payable $342
(being accrued interest expense is recorded)
2. Supplies expense [$2,200 - $820] $1,380
To Supplies $1,380
[Being supplies expense is recorded]
3. Depreciation expense $1,200
To Accumulated depreciation-Equipment $1,200
[Being depreciation expense is recorded]
4 Insurance expense [$3,960 × 7 ÷ 12] $2,310
To Prepaid insurance $2,310
[being insurance expense is recorded]
5 Unearned service revenue $7,000
To Service revenue $7,000
[Being revenue from unearned is recorded]
6 Accounts receivable $4,200
To Service revenue $4,200
[Being accrued service revenue is recorded]
7 Salaries expense [$5,400 × 3 ÷ 5] $3,240
To Salaries payable $3,240
[being accrued salaries expense is recorded]
For a program to be successful, readiness for training should be assessed on two dimensions: employee characteristics and work environment. The employee characteristics that are relevant to training are the ability to learn the subject matter, attitudes toward training, and motivation to learn. Even if these are present, however, training will not be effective unless there is a positive work environment—an environment that encourages learning and eliminates obstacles for trainee success.
An important characteristic of employee readiness is having basic learning skills, especially cognitive ability that includes using written and spoken language, solving math problems, and using logic to solve problems. If employees lack certain basic skills, they may have to attend some remedial classes before participating in job-related training. Seeing potential benefits from training programs may increase employee motivation to participate. Readiness for training also depends on work environment characteristics called situational constraints and social support. Constraints can include the limits of training's effectiveness from within the organization, such as lack of money or lack of time for training and practicing. Social support refers to the ways that the organization encourages training by expressing positive attitudes toward its training programs. The goal of this activity is to evaluate employee readiness for training.
Read each statement, then select the appropriate category
1. When new employees arrive on the sales floor after training at Hamilton Department Store, experienced employees have a tendency. Forget what you learned. This is how we really do it.
2. Time and again, Brooke's employees complained that the statistical quality control training was too difficult to be useful.
3. As much as she would like to. Elizabeth really doesn't think top management is going to allocate enough money to train everyone on the new software this year.
4. Although Jane really wanted to participate in the diversity training program, she knew it was impossible to get away from the office for three days in order to participate.
5. Ed was excited to hear about the new technical training program, but disappointed when he heard his boss say that he really didn't think the training was the time and effort
a. Social Support
b. Situational Constraints
c. Employee Readiness
Answer:
1.
by asking new employees to unlearn the theories they have so that they can learn on the job, these experienced employees are getting the new ones ready to start applying concepts. this shows social support from the old employees to the new ones
2.
these complaints by Brooke's employees shows employee readiness because the complaints are basically about not being able to find their way around around the training since they say it is too difficult.
3.
this is situational constraints as the question implies a constraint in funds available to train all employees on the new software. and it is causing an issue In getting all employees trained.
4.
this is situational constraint and time is the constraint. elizabeth though ready does not have the time for the training.
5. this is social support. ed's manager has caused him to reevaluate on this training because in his opinion it would be like a waste of time and effort.
One year ago, Tyler Stasney founded Swift Classified Ads. Stasney remembers that you took an accounting course while in college and comes to you for advice. He wishes to know how much net income his business earned during the past year in order to decide whether to keep the company going. His accounting records consist of the T-accounts from his ledger, which were prepared by an accountant who moved to another city. The ledger at December 31 follows. The accounts have not been adjusted. Stasney indicates that at year-end, customers owe him $1,600 for accrued service revenue. These revenues have not been recorded. During the year, Stasney collected $4,000 service revenue in advance from customers, but he earned only $900 of that amount. Rent expense for the year was $2,400, and he used up $1,700 of the supplies. Stasney determines that depreciation on his equipment was $5,000 for the year. At December 31, he owes his employee $1,200 accrued salary.
Answer:
net income = $33,900
Explanation:
The T-accounts are missing, so I looked for a similar question:
Stasney indicates that at year-end, customers owe him $1,600 for accrued service revenue. These revenues have not been recorded.
Dr Accounts receivable 1,600
Cr Service revenue 1,600
During the year, Stasney collected $4,000 service revenue in advance from customers, but he earned only $900 of that amount.
Dr Unearned revenue 900
Cr Service revenue 900
Rent expense for the year was $2,400, and he used up $1,700 of the supplies.
Dr Rent expense 2,400
Cr Prepaid rent 2,400
Dr Supplies expense 1,700
Cr Supplies 1,700
Stasney determines that depreciation on his equipment was $5,000 for the year.
Dr Depreciation expense 5,000
Cr Accumulated depreciation 5,000
At December 31, he owes his employee $1,200 accrued salary.
Dr Wages expense 1,200
Cr Wages payable 1,200
Total expense for the year = $17,000 (paid wages) + $1,200 (accrued wages) + $800 (utilities) + $2,400 (rent) + $1,700 (supplies) + $5,000 (depreciation) = $28,100
total revenues = $59,500 (previously recorded) + $1,600 (unrecorded service revenue) + $900 (accrued service revenue) = $62,000
net income = $62,000 - $28,100 = $33,900
Sheridan Company pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Sheridan accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2020 are as follows: Last payroll was paid on 12/26/20, for the 2-week period ended 12/26/20. Overtime pay earned in the 2-week period ended 12/26/20 was $24000. Remaining work days in 2020 were December 29, 30, 31, on which days there was no overtime. The recurring biweekly salaries total $444000.
Assuming a five-day workweek, Sheridan should record a liability at December 31, 2020 for accrued salaries of:_________.
a. $266400
b. $290400
c. $133200
d. $157200
Answer:
d. $157,200
Explanation:
Calculation for the amount that Sheridan should record a liability at December 31, 2020 for accrued salaries
Liability for accrued salary=$24,000 + ($444,000 ÷ 10 days × 3)
Liability for accrued salary=$24,000+$133,200
Liability for accrued salary= $157,200
Therefore the amount that Sheridan should record a liability at December 31, 2020 for accrued salaries will be $157,200
If the college strictly enforces the rent ceiling of $250 a month, the on-campus housing market is
Answer: B. inefficient; the rent ceiling has no effect on the number of rooms rented
Explanation:
If the college strictly enforces the rent ceiling of $250 a month, the on-campus housing market is inefficient because the rent ceiling has no effect on the number of rooms rented.
An efficient market will see equilibrium supply meting equilibrium demand and this is not the case in this market because the supply seems to stay the same regardless of the demand.
This market is inefficient because supply does not react to the rent paid and is always the same. This is why a rent ceiling of $250 had no effect on the market in terms of supply. Efficient markets should see both supply and demand reacting to price so that a mutually beneficial equilibrium can be reached.
The following expenditures were incurred by Tamarisk, Inc. in purchasing land: cash price $74,000, accrued taxes $4,400, attorneys’ fees $4,300, real estate broker’s commission $1,500, and clearing and grading $3,600. What is the cost of the land?
Answer:
$87,800
Explanation:
The following expenditures were incurred by Tamerisk incorporation when purchasing a land
Cash price = $74,000
Accured taxes = $4,400
Attorneys fee= $4,300
Real estate brokers commission = $1,500
Clearing and grading = $3,600
Therefore the cost of the land can be calculated as follows
= $74,000 + $4,400 + $4,300 + $1,500 + $3,600
= $87,800
Hence the cost of the land is $87,800
Allen Air Conditioning manufactures room air conditioners at plants in Houston, Phoenix, and Memphis. These are sent to regional distributors in Dallas, Atlanta, and Denver. The shipping costs vary, and the company would like to find the least-cost way to meet the demands at each of the distribution centers. Dallas needs to receive 800 air conditioners per month, Atlanta needs 600, and Denver needs 200. Houston has 850 air conditioners available each month, Phoenix has 650, and Memphis has 300. The shipping cost per unit from Houston to Dallas is $8, to Atlanta $12, and to Denver $10. The cost per unit from Phoenix to Dallas is $10, to Atlanta $14, and to Denver $9. The cost per unit from Memphis to Dallas is $11, to Atlanta $8, and to Denver $12. 14700.
Required:
a. Based on the given demand and supply, the given transportation problem is ________
b. Before finding the initial solution, a dummy_____________ should be introduced.
c. The total cost of the optimal solution =____________
Answer:
(A) An optimization problem
(B) Variable
(C) $14,700
Explanation:
HOUSTON, PHOENIX, MEMPHIS ----- DALLAS, ATLANTA, DENVER
| | | | | |
850 650 300 800 600 200
Shipping Cost per Room Air Conditioner:
HOUSTON to Dallas - $8 [800 × 8 = $6400]
to Atlanta - $12 [50 × 12 = $600]
to Denver - $10
Total shipping cost = $7,000
PHOENIX to Dallas - $10
to Atlanta - $14 [250 × 14 = $3500]
to Denver - $9 [200 × 9 = $1800]
Total shipping cost = $5,300
MEMPHIS to Dallas - $11
to Atlanta - $8 [300 × 8 = $2400]
to Denver - $12
Total shipping cost = $2,400
The total cost of the optimal solution is:
7,000 + 5,300 + 2,400 = $14,700
How was this optimal cost gotten?
- Check the least shipping cost to Dallas, this is found in Houston and that's 8 dollars. Houston hence supplies Dallas 800 ACs and has 50 left. Remember this, in case you need more ACs.
- Check the least shipping cost to Atlanta, this is found in Memphis and that's 8 dollars. An obstruction here is that Memphis only has 300 ACs to send to Atlanta, so Atlanta needs 300 more. Keep this in mind.
- Check the least shipping cost to Denver, this is found in Phoenix and that's 9 dollars. Phoenix hence supplies Denver its needed 200 ACs and has 450 left.
- There is need to complete shipping to Atlanta and the next affordable shipping cost to Atlanta is found in Houston and that's $12. Houston should send its remaining 50 ACs to Atlanta.
- Atlanta needs 250 more ACs and Phoenix has 450 extra. Allen Air Conditioning Company can now settle for the relatively high shipping cost of Phoenix to Atlanta, to supply the remaining 250 ACs which Atlanta needs.
The following incorrect income statement was prepared by the accountant of the Axel Corporation:
AXEL CORPORATION Income Statement For the Year Ended December 31, 2021 Revenues and gains:
Sales revenue $660,000
Interest revenue 39,000
Gain on sale of investments 86,000
Total revenues and gains 785,000
Expenses and losses:
Cost of goods sold $360,000
Selling expense 66,000
Administrative expense 86,000
Interest expense 23,000
Restructuring costs 62,000
Income tax expense 47,000
Total expenses and losses 644,000
Net Income $141,000
Earnings per share $1.41
Required:
Prepare a multiple-step income statement for 2018 applying generally accepted accounting principles. The income tax rate is 40%.
Answer:
AXEL CORPORATION
Income Statement For the Year Ended December 31, 2021
Particulars Amount Amount
Sales Revenue $6,60,000
Less : Cost of Goods Sold $360,000
Gross Profit $300,000
Less: Operating Expenses
Selling Expenses $66,000
Administrative Expenses $86,000 $152,000
Operating Income $148,000
Non- Operating and others
Restructuring cost -$62,000
Interest Expenses -$23,000
Interest Revenue $39,000
Gain on sale of investment $86,000 $40,000
Net Income before Taxes $188,000
Less : Income Tax Expenses $47,000
Net income after Taxes $141,000
The Earning Per Shares remains $1.41
Consider the experiments. Experiment 1: A study is done to determine which of two fuel mixtures allows a rocket to travel farther over a period of time. Rocket A, which requires additional equipment to keep it stable, is used to test one fuel mixture, and rocket B is used to test the other. Both rockets are identical aside from their mass. The results indicate that rocket B traveled farther than rocket A over the same period of time. Experiment 2: A double-blind experiment is performed to test whether a new drug is effective in lowering blood pressure. A random sample of subjects with high blood pressure is assigned to two groups. One group receives the new drug and the other group does not. Neither group is permitted to take any other medications during the experiment or to change their lifestyles in any way. The results of the experiment show that the drug is effective in lowering blood pressure.
Identify the experiment in which confounding occurs and the reason for its occurrence.
a. Neither experiment has a confounding variable.
b. Experiment 1 has a confounding variable related to the fuel mixtures. Varying the fuel mixture could skew the results of the study and should be kept constant.
c. Experiment 2 has a confounding variable related to the type of experiment. A double-blind experiment may increase the risk of the placebo effect and possibly skew the results.
d. Experiment 1 has a confounding variable related to the mass of the rockets. Any variation in mass may cause a discrepancy in the distance traveled.
e. Experiment 2 has a confounding variable related to the subjects used. Choosing a sample of subjects with high blood pressure instead of individuals with different blood pressure levels may confuse the results.
Answer:
d. Experiment 1 has a confounding variable related to the mass of the rockets. Any variation in mass may cause a discrepancy in the distance traveled.
Explanation:
Both experiments have confounding variables. But the reasons given for the occurrence of the confounder in experiment 2 do not justify (c) and (e) as correct answers. By definition, confounders are factors other than the independent variable that cause differences in outcome. For experiment 1, the different masses of the two rockets affect the independent variable (fuel mixture) being studied, and actually cause the discrepancy in the distance traveled as indicated in answer (d). Other examples of confounders are placebo, weather, age, and experimenter bias which a double-blind can eliminate.
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. If the Chicago-Atlanta round-trip air fare were $350, should you use the coupon to go to Miami?
Answer:
You should use the discount coupon to pay for the Chicago-Miami trip. Not considering the personal motivations for the trip, the coupon is worth $500. The cost of flying is $600, so you will only pay $100 yourself. You will be spending $900 + $1000 = $1,000 in total.
The opportunity cost of using the coupon is $350 (the cost of the round trip to Atlanta). Even if you add the $350 to the $1,000 expense, the total is $1,350, less than your $1,400 maximum budget.
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences:
($ in thousands)
Situation
1 2 3 4
Taxable income $84 $216 $196 $260
Future deductible amounts 16 20 20
Future taxable amounts 16 16 28
Balance(s) at beginning of the year:
Deferred tax asset 2 9 4
Deferred tax liability 8 2
The enacted tax rate is 25%.
Required:
For each situation, determine the following:
Situation
1 2 3 4
a. Income tax payable
b. Deferred tax asset - balance
c. Deferred tax asset - change
d. Deferred tax liability - balance
e. Deferred tax liability - change
f. Income tax expense
Answer:
Please see attached detailed solution
Explanation:
a. Income tax payable
b. Deferred tax asset - balance
c. Deferred tax asset - change
d. Deferred tax liability - balance
e. Differed tax liability - change
f. Income tax expense
Please find attached detailed solution to the above questions.
All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December 31
On September 1 of the current year, Zimmerman collected six months' rent of $8,520 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,520.
On October 1 of the current year, the company borrowed $13,200 from a local bank and signed a one-year, 12 percent note for that amount. The principal and interest are payable on the maturity date.
Depreciation of $3,000 must be recognized on a service truck purchased in July of the current year at a cost of $24,000.
Cash of $3,600 was collected on November of the current year, for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was received.
On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $9,960, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount.
The company earned service revenue of $4,200 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded.
At December 31 of the current year, wages earned by employees totaled $13,700. The employees will be paid on the next payroll date in January of the next year.
On December 31 of the current year, the company estimated it owed $490 for this year's property taxes on land. The tax will be paid when the bill is received in January of next year.
2. Using the following headings, indicate the effect of each adjusting entry and the amount of the effect. Use + for increase, − for decrease. (Reminder: Assets = Liabilities + Stockholders’ Equity; Revenues – Expenses = Net Income; and Net Income accounts are closed to Retained Earnings, a part of Stockholders’ Equity.)
Answer:
1) adjusting entries
a. On September 1 of the current year, Zimmerman collected six months' rent of $8,520 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,520.
Dr Unearned rental revenue 5,500
Cr Rental revenue 5,500
b. On October 1 of the current year, the company borrowed $13,200 from a local bank and signed a one-year, 12 percent note for that amount. The principal and interest are payable on the maturity date.
Dr Interest expense 396
Cr Interest payable 396
c. Depreciation of $3,000 must be recognized on a service truck purchased in July of the current year at a cost of $24,000.
Dr Depreciation expense 3,000
Cr Accumulated depreciation 3,000
d. Cash of $3,600 was collected on November of the current year, for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was received.
Dr Unearned service revenue 600
Cr Service revenue 600
e. On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $9,960, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount.
Dr Insurance expense 1,660
Cr Prepaid insurance 1,660
f. The company earned service revenue of $4,200 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded.
Dr Accounts receivable 4,200
Cr Service revenue 4,200
g. At December 31 of the current year, wages earned by employees totaled $13,700. The employees will be paid on the next payroll date in January of the next year.
Dr Wages expense 13,700
Cr Wages payable 13,700
h. On December 31 of the current year, the company estimated it owed $490 for this year's property taxes on land. The tax will be paid when the bill is received in January of next year.
Dr Property taxes expense 490
Cr Property taxes payable 490
2) Assets = Liabilities + Stockholders’ Revenues - Expenses = Net
Equity Income
a. na - + + na +
b. na - - na - -
c. - na - na - -
d. na - + + na +
e. - na - na - -
f. + na + + na +
g. na + - na - -
h. na + - na - -
20 points I need help Which tasks are common to all Education and Training career pathways?
Answer:
teaching students and collaborating with teachers on instructional content
Explanation:
Mattola Company is giving each of its employees a holiday bonus of $200 on December 13, 20-- (a nonpayday). The company wants each employee's check to be $200. The supplemental tax percent is used.
Nobody has capped for OASDI prior to the bonus check.
a. What will be the gross amount of each bonus if each employee pays a state income tax of 2.8% (besides the other payroll taxes)? You may need to add one penny to the gross so that net bonus exactly equals $200. Round your calculations and final answers to the nearest cent.
b. What would the net amount of each bonus check be if the company did not gross-up the bonus? Round your intermediary calculations to the nearest cent.
Answer:
a. Gross amount of each bonus = $309.84
b. Net amount of each bonus = $129.10
Explanation:
Since the supplemental tax percent is used, the following are the relevant tax rates to be applied in the calculations:
STP = Supplemental tax percent = 25%
FICASO = Federal Insurance Contributions Act (FICA) social security tax = 6.2%
FICAM = Federal Insurance Contributions Act (FICA) Medicare tax = 1.45%.
SIT = State income tax = 2.8%
We therefore proceed as follows:
a. What will be the gross amount of each bonus if each employee pays a state income tax of 2.8% (besides the other payroll taxes)? You may need to add one penny to the gross so that net bonus exactly equals $200. Round your calculations and final answers to the nearest cent.
Given the tax rates above, the following formula is used to calculate the gross amount of each bonus:
Gross amount of each bonus = Holiday bonus amount / (100% - STP - FICASO - FICAM - SIT) …… (1)
Substituting the relevant values into equation (1), we have:
Gross amount of each bonus = $200/ (100% - 25% - 6.20% - 1.45% - 2.8%)
Gross amount of each bonus = $200 / 64.55%
Gross amount of each bonus = $309.837335398916
To the nearest cent which implies to two decimal places, we have:
Gross amount of each bonus = $309.84
b. What would the net amount of each bonus check be if the company did not gross-up the bonus? Round your intermediary calculations to the nearest cent.
The net amount of each bonus can be calculated using the following formula:
Net amount of each bonus = Holiday bonus amount * (100% - STP - FICASO - FICAM - SIT) …… (2)
Substituting the relevant values into equation (2), we have:
Net amount of each bonus = $200 * (100% - 25% - 6.20% - 1.45% - 2.8%)
Net amount of each bonus = $200 * 64.55%
Net amount of each bonus = $129.10
Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2021-2023. At December 31, 2020, the corporation's accounts included:
Common stock, 111 million shares at $1 par $111,000
Paid-in capital-excess of par 666,000
Retained earnings ($ in thousands) 900,000
a. November 1, 2021, the board of directors declared a cash dividend of $0.50 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.
b. On March 1, 2022, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $2.6 million, but were purchased two years previously for $2.3 million. Because they were intended to be held to maturity, the bonds had not been previously written up. The property dividend was payable to shareholders of record March 13, to be distributed April 5.
c. On July 12, 2022, the corporation declared and distributed a 6% common stock dividend (when the market value of the common stock was $18 per share). Cash was paid in lieu of fractional shares representing 660,000 equivalent whole shares.
d. On November 1, 2022, the board of directors declared a cash dividend of $0.50 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.
e. On January 15, 2023, the board of directors declared and distributed a 3-for-2 stock split effected in the form of a 50% stock dividend when the market value of the common stock was $19 per share.
f. On November 1, 2023, the board of directors declared a cash dividend of $0.35 per share on its common shares, payable to shareholders of record November 15, to be paid December 1.
Answer:
a)
dividends 55.5 million debit
dividends payable 55.5 million credit
--Nov 1st, 2021--
dividends payable 55.5 million debit
cash 55.5 million credit
b)
dividends 2,600,000 debit
dividends distributable 2,600,000 credit
--March 1st--
dividends distributable 2,600,000 debit
Warner Securities 2,300,000 credit
Gain on Investment 300,000 credit
--April 5th--
c)
dividends 119.88 million debit
cash 11.88 million credit
common stock 18 million credit
additional paid-in CS 90 million credit
d)
dividends 58.5 debit
Dividends Payable 58.5 credit
--Nov 1st
Dividends payable 58.5 million debit
cash 58.5 million credit
--Dec 1st--
e) NO ENTRY REQUIRED
f)
dividends 61.425 debit
Dividends Payable 61.425 credit
--Nov 1st
Dividends payable 61.425 million debit
cash 61.425 million credit
--Dec 1st--
Explanation:
a) 111 millions shares x $0.50 = $55.5 millions
c)
111 millions x $18 per share x 6% = 119.88 millions
660,000 x $18 = 11.88 millions
net: 119.88 - 11.88 = 108 millons on shares
$108 millons / $18 per share = 6,000,000 shares
d)
111 + 6 new shares = 117 shares
$117 x $0.50 = $58.5 millons
f) 3-2 split gives 3 shares for every 2 shares
117 x 3/2 = 175.5 millons
175.5 millions x 0.35 per share = 61.425 million cash dividends
Your boss would like your help on a marketing research project he is conducting on the relationship between the price of soup and the quantity of soup supplied. He hands you the following document:
Price of Soup Quantity of Soup Supplied
0.50 750
0.75 1,000
1.00 1,500
1.25 2,000
Your task is to take this blank and construct a graphical representation of the data. In doing so, you determine that as the price of soup rises, the quantity of soup supplied increases. This confirms the blank.
For both blanks, the choices are supply curve, quantity of soup supplied, supply schedule, and law of supply. I got law of supply for the first blank, and supply curve for the second blank and I wanted to make sure if I was correct.
Answer:
Your task is to take this supply schedule and construct a graphical representation of the data. In doing so, you determine that as the price of soup rises, the quantity of soup supplied increases. This confirms the law of supply.
Explanation:
We draw the supply curve being X-axis the quantity and Y-axis the Price.
The date to construct this representation is in the supply schedule.
This confirms the "law of supply" which states that as the price of a good icnrases the willingess to produce more units of that good increases as there is higher revenue.
In an example, a local church is made up of people who are very different in their lifestyles and their stages of life. Mary is a 23-year-old single parent who earns the minimum wage. Jonathan is 60 years old, extremely wealthy, and works because he enjoys it. Jane is a 45-year-old lawyer who earns well and is well-respected in her profession. She is extremely career-oriented and is proud of her achievements. Which of the following do you think would motivate Jonathan the most?
a. safety
b. physiological
c. self-actualization
d. growth
e. esteem
Answer:
C) Self actualization
Explanation:
From the question, we are informed about example of alocal church is made up of people who are very different in their lifestyles and their stages of life, we are told if Mary who is is a 23-year-old single parent who earns the minimum wage. Jonathan is 60 years old, extremely wealthy, and works because he enjoys it. Jane is a 45-year-old lawyer who earns well and is well-respected in her profession. She is extremely career-oriented and is proud of her achievements.
In this case, self actualization would motivate Jonathan the most. This is because self actualization can be regarded as self fulfilment, it is when one fully realize his/her potential and gives appreciation, and here
Jonathan is 60 years old, and described as extremely wealthy, and works because he enjoys it. Hence self actualization is the best answer.
On July 1, 2020, Buffalo Inc. made two sales.
1. It sold land having a fair value of $904,290 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,422,914. The land is carried on Buffalo's books at a cost of $591,300.
2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $408,830 (interest payable annually).
Buffalo Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest.
Required:
Record the two journal entries that should be recorded by Vaughn Inc. for the sales transactions above that took place on July 1, 2020.
Answer:
Journal 1
July 1
Note Receivable $1,422,914 (debit)
Profit and Loss $851,614 (credit)
Land $591,300 (credit)
Sale of land on credit
Journal 2
July 1
Note Receivable $861,394 (debit)
Service Revenue $861,394 (credit)
Rendered Services on credit
Explanation:
Journal 1
Sale of land on credit :
De-recognise the Land in Buffalo Inc. books at cost, Recognise the Assets of Note Receivable and a Profit from sale. Proceeds are measured at the future value
Future Value :
PV = $1,422,914
n = 4
pmt = $0
p/yr = 1
fv = ?
Using a financial calculator the future value is $1,422,914.
Journal 2
Rendered Services on credit :
Recognize the Assets of Note Receivable and Recognise the Revenue at the future value.
Future Value :
pv = - $408,830
n = 8
pmt = 3% × $408,830 = $12,264.90
i = 12%
p/yr = 1
fv = ?
Using a financial calculator, the future value is $861,394
20. The consumer price index was 120 in 2013 and 126 in 2014. The nominal interest rate during this period was 8 percent. What was the real interest rate during this period? A) 3 percent B) 2 percent C) 3.3 percent D) 5.2 percent E) 12.8 percent
Answer: 3%
Explanation:
To calculate the real interest rate, it should be noted that the inflation rate is needed and this can be calculated using the consumer price index as:
= [(126-120)/120] × 100
= 6/120 × 100
= 5%
Real interest rate will now be:
= Nominal Rate - Inflation Rate
= 8% - 5%
= 3%
It is important that marketers be able to identify which strategy a competitor is using so that they better understand how to position their own products and services. You will see a list of recent or potential strategic decisions made by large firms, and your job is to identify which type of strategy was used in each example.
While there are a variety of strategies across industries, most fall under four basic categories.
1. Market penetration strategies emphasize selling more existing products and services to existing customers.
2. Product development strategies involve creating new goods or services for existing markets.
3. Market development strategies focus on selling existing products or services to new customers. The targeted new customers could be a different gender, age group, or international market.
4. Finally, diversification strategies involve offering new products that are unrelated to the existing products produced by the organization.
Select the most appropriate category of emotional intelligence for below mention behaviors.
i. Arm and Hammer selling baking soda for new purposes.
a. Market penetration
b. Product development
c. Market development
d. Diversification
ii. Apple opening mini-stores within Target
a. Market penetration
b. Product development
c. Market development
d. Diversification
iii. Disney purchasing ESPN
a. Market penetration
b. Product development
c. Market development
d. Diversification
Answer:
1. Market development
2. Market penetration
3. Diversification
Explanation:
we have already been given a definition of these concepts from question
1.
for Ann and hammer: it is market development because they are trying to create a product for new purposes
2.
for apple: since they are opening mini stores within target they are trying to have an expansion approach where more products and services would be sold to their customers.
3.
for disney: they are diversifying into a new product entirely. ESPN is a well known channel for sporting related activities.
Gayne Corporation's contribution margin ratio is 18% and its fixed monthly expenses are $53,500. If the company's sales for a month are $318,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.
Answer:
$3,740
Explanation:
The computation of net operating income is shown below:-
Contribution margin = Sales × CM ratio
= $318,000 × 18%
= $57,240
Net operating income = Contribution margin - fixed assets
= $57,240 - $53,300
= $3,740
So, we have applied the above formula.
Hence, the net operating income is $3,740 and the same is to be considered
On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.
Sept. 6 Purchased with cash 80 calculators at $20 each from Guthrie Co.
Sept. 9 Paid freight of $80 on calculators purchased from Guthrie Co.
Sept. 10 Returned 3 calculators to Guthrie Co. for $63 cash (including freight) because they did not meet specifications.
Sept. 12 Sold 26 calculators costing $21 (including freight) for $31 each on account to Lee Book Store, terms n/30.
Sept. 14 Granted credit of $31 to Lee Book Store for the return of one calculator that was not ordered.
Sept. 20 Sold 30 calculators costing $21 for $32 each on account to Orr's Card Shop, terms n/30.
Journalize the September transactions.
Answer and Explanation:
The journal entries are shown below:
Inventory $1,600 (80 × $20)
To Accounts Payable $1,600
(Being inventory purchased on account)
Inventory $80
To Cash $80
(Being the freight charges is paid)
Accounts Payable $63
To Inventory $63
(being returned inventory is recorded
Accounts Receivable $806 (26 × $31)
To Sales Revenue $806
(Being sale of calculators on account is recorded)
Cost of Goods Sold $546 (26 × $21)
To Inventory $546
(being cost of calculators sold is recorded)
Sales Returns and Allowances $31
To Accounts Receivable $31
(Being return of calculator that is recorded)
Inventory $31
Cost of Goods Sold $31
(Being cost of calculators returned is recorded)
Accounts Receivable $960 (30 × $32)
To Sales Revenue $960
(Being sale of calculators on account is recorded)
Cost of Goods Sold $630 (30 × $21 )
To Inventory $630
(Being cost of calculators sold is recorded)
when the business cycle or economic activity is declining the economy is said to be what
Answer:
Contraction
Explanation:
Contraction is when the level of economic activities in a country goes down. There is decreased productivity in the country, as indicated by a decline in the GDP value. At contraction, the economy will experience a drop in real incomes, retail sales, and industrial production. The unemployment rate begins to rise steadily as companies stop hiring while other lay-off workers due to reduced demand.
Three different companies each purchased trucks on January 1, 2018, for $76,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 81,000 miles in 2018, 55,000 miles in 2019, 46,000 miles in 2020, and 71,000 miles in 2021. Each of the three companies earned $65,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes.
Required:
a. Calculate the net income for 2021?
b. Which company will report the lowest amount of net income for 2021?
c. Calculate the book value on the December 31, 2020, balance sheet?
d. Which company will report the highest book value on the December 31, 2020, balance sheet?
e. Calculate the retained earnings on the December 31, 2021, balance sheet?
f. Which company will report the highest amount of retained earnings on the December 31, 2021, balance sheet?
Answer:
a) 2021: Company A Company B Company C
Sales Revenue $65,000 $65,000 $65,000
Depreciation 17,500 3,500 19,880
Net Income $47,500 61,500 $45,120
b) Company C.
c) Book Value on December 31, 2020 Balance Sheet:
Company A Company B Company C
Truck $76,000 $76,000 $76,000
Accumulated Depreciation $52,500 $66,500 $50,960
Book value $23,500 $9,500 $25,040
d) Company reporting the highest book value on December 31, 2020:
Company C.
e) Retained Earnings:
Company A Company B Company C
2018:
Net Income $47,500 27,000 $42,320
2019:
Net Income $47,500 46,000 $49,600
2020:
Net Income $47,500 55,500 $52,120
2021:
Net Income $47,500 61,500 $45,120
Retained earnings $190,000 $190,000 $189,160
f) Companies A and B will report the highest amount of retained earnings because C's units of production did not tally to 250,000.
Explanation:
Cost of Truck = $76,000
Lifespan = 4 years or 250,000 miles
Salvage value = $6,000
Depreciable amount = $70,000 ($76,000 - $6,000)
Straight-line rate = $17,500 ($70,000/4) or 25% (100/4) per year
Double-declining balance rate = 50% (100/4 * 2) on the book balance
Units of production rate = $0.28 ($70,000/250,000) per unit
Income Statement for the three companies:
Company A Company B Company C
2018:
Sales Revenue $65,000 $65,000 $65,000
Depreciation 17,500 38,000 22,680
Net Income $47,500 27,000 $42,320
2019:
Sales Revenue $65,000 $65,000 $65,000
Depreciation 17,500 19,000 15,400
Net Income $47,500 46,000 $49,600
2020:
Sales Revenue $65,000 $65,000 $65,000
Depreciation 17,500 9,500 12,880
Net Income $47,500 55,500 $52,120
2021:
Sales Revenue $65,000 $65,000 $65,000
Depreciation 17,500 3,500 19,880
Net Income $47,500 61,500 $45,120
Accumulated Depreciation:
Company A Company B Company C
Depreciation 2018 17,500 38,000 22,680
Depreciation 2019 17,500 19,000 15,400
Accumulated Depreciation $35,000 $57,000 $38,080
Depreciation 2020 17,500 9,500 12,880
Accumulated Depreciation $52,500 $66,500 $50,960
Depreciation 2021 17,500 3,500 19,880
Accumulated Depreciation $70,000 $70,000 $70,840
A small country is collecting more money than it spends. What is MOST likely the fiscal policy stance that this government takes?
expansionary stance
contractionary stance
economic stance
neutral stance
Answer:
Contractionary stance
Explanation:
When the government collects more extra money than it is spending, it signals a robust and fast-growing economy. Contractionary fiscal policy measures are applied to slow down growth and reduce inflationary pressure.
The contractionary fiscal policy is the government's mechanism of reducing the money supply in the economy. The government may reduce its spending in the economy, increase business taxes, or both. These actions decrease the money supply in the economy, which reduces the amount that businesses can borrow to expand. The objective is to lower the aggregate demand, thereby slowing the country's rate of producing new goods and services.
Last month Dexter Company had a $11,780 loss on sales of $164,000. Fixed costs are $62,620 a month. By how much do sales have to increase for Dexter to break even
Answer:
$38,000
Explanation:
Calculation for how much do sales have to increase for Dexter to break even
First step is to find the contribution margin ratio
Contribution margin ratio = ($62,620 - $11,780)/$164,000 = 30%
Contribution margin ratio =$50,840/$164,000
Contribution margin ratio=31%
Second step is to find the Break even sales Break even sales=$62,620/0.31
Break even sales=$202,000
Last step is to find the increase in sales
Sales must increase =$202,000 - $164,000
Sales must increase = $38,000
Therefore the amount that sales have to increase for Dexter to break even will be $38,000
Camille Sikorski was divorced last year. She currently provides a home for her 15-year-old daughter, Kaly, and 18-year-old son, Parker. Both children lived in Camille’s home, which she owns, for the entire year, and Camille paid for all the costs of maintaining the home. She received a salary of $55,000 and contributed $4,200 of it to a qualified retirement account (a for AGI deduction). She also received $6,000 of alimony from her former husband. Finally, Camille paid $2,700 of expenditures that qualified as itemized deductions.
a. What is Camille’s taxable income?
b. What would Camille’s taxable income be if she incurred $9,800 of itemized deductions instead of $2,700?
c. Assume the original facts but now suppose Camille’s daughter, Kaly, is 25 years old and a full-time student. Kaly’s gross income for the year was $5,300. Kaly provided $3,180 of her own support, and Camille provided $5,300 of support. What is Camille’s taxable income?
#6 is it Greater of standard deduction or itemized deduction or is it Lesser of standard deduction or itemized deduction
Description Amount
1) Gross income
2) For AGI deductions
3) Adjused gross income $
4) Standard deduction
5) Itemized deductions
6)
7) Personal and dependency exemptions
8) Total deductions from AGI $
Taxable income
Answer:
Uhhh is there any sources?
Explanation:
O’Hara Associates sells golf clubs, and with each sale of a full set of clubs provides complementary club-fitting services. A full set of clubs with the fitting services sells for $1,400. O’Hara estimates that it incurs $50 of staff compensation and other costs to provide the fitting services, and normally earns 20% over cost on similar services. Assuming that the golf clubs and the club-fitting services are separate performance obligations, estimate the stand-alone selling price of the club-fitting services using the expected cost plus margin approach.
Answer:
$60.00
Explanation:
Calculation to estimate the stand-alone selling price
Hara Amount $ Note
Staff compensation $50.00
Mark up % 20%
Mark up amount $10.00
(20%*$50)
Standalone selling price of club fitting services $60.00
($50.00+$10.00)
Therefore the estimated stand-alone selling price will be $60.00