Answer: I will vote in favor of the bill.
Explanation:
Based on the above scenario, I would vote in favor of the bill. The argument here is in the case of bankruptcy, if an individual is willing to pay their dues but because of unavoidable financial circumstances, the individual seeks more time or other assistance which can help so that the person will later pay. I believe it's a good idea which should be supported by the law.
The court should have the right to decide terms of mortgages to help debtors in order for them to pay their debts in future rather than forcing them to leave the house. It will also help the country deal with issue of facilitating housing to maximum number of individuals.
In my opinion, the judge's decision should be given prime importance as the judge must evaluate the intention of the debtor and the capability of the debtor to pay the debts
You are reviewing the accounting records of Cathy's Antiques, Inc. owned by Cathy Miller. You have uncovered the following situations. Compose a memo to Ms. Miller that cites the appropriate accounting principle and the suggested action for each separate situation.
1.In August, a check for $500 was written to Wee Day Care Center. This amount represents child care for her son Brandon.
2.Cathy plans a Going out of Business Sale for May, since she will be closing her business for a month-long vacation in June. She plans to reopen July 1 and will continue operating Cathy's Antiques indefinitely.
3.Cathy received a shipment of pine furniture from Quebec, Canada. The invoice was stated in Canadian dollars.
4. Joseph Clark paid $1,500 for a dining table. The amount was recorded as revenue. The table will be delivered to Mr. Clark in six weeks.
Answer and Explanation:
The accounting principles and the suggestions are shown below:
a. Business Entity Concept:
In this given situation, the amount of $500 should be refunded to the business or it can be recognized as the withdrawal amount by Cathy Miller. The suggestion is that She should use a personal check for paying daycare in the future for her son
b. Going Concern Concept:
Since the business is closed for month-long vacation in the month of June. As Cathy's Antiques is not closing the business for permanent. As she plans for reopening on July 1. The suggestion is that she should hold an inventory decline sale or for other relevant sales.
c. Monetary Unit Concept:
The invoice should be restated in the united states for the purpose of accounting
d. Revenue Recognition Concept:
The revenue should be recognized when it is realized or earned. As the table is not delivered so the revenue should not be recognized.
The amount of $1,500 should be recorded for an account like deposits received from the customers until the delivering of the table is not done
At December 31, 2021 and 2020, Sheridan Company had 171000 shares of common stock and 12000 shares of 7%, $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 $442000. For 2021, earnings per common share amounted to (rounded to the nearest penny)
Answer:
The earnings per common share amounted to $2.53
Explanation:
Solution
Given that:
The Net Income for 2021= $442000
Thus,
The Dividend to be accrued on Preference shares for 2021 = 1200 *7% * 100
= $8400
The Earnings available to common share-holders for 2021 =$442000-$8400
= $433600
The number of common shares outstanding is = 171000 shares
So,
The Basic Earnings per share = 433600/171000
= $2.53
Question I - Debbie Debtor borrowed $1,000.00 from First Big Bank. Debbie Debtor agreed to repay the $1,000.00 over eight months plus interest. Debbie Debtor loses her job and stops making payments to First Big Bank after two months. What is the source of law that governs the subsequent remedies that may be available to First Big Bank? Question II - Eddie Embezzler has worked for Betty Boss for many years as an accountant. During his employment, Eddie has taken thousands of dollars from Betty’s business. As a result, Betty has suffered. Did Eddie violate a criminal law, a civil law, or both? Explain.
Answer:
(1). Check Explanation.
(2). Under both laws.
Explanation:
(1). Many times, things do not go as one wishes as this is the case of Debbie Debtor in the question above. Debbie Debtor is unable to repay her debt and no matter what the First Big Bank must collect their money back. The ways in which First Big Bank will collect their money back is governed by the Fair Debt Collection Practices Act (FDCPA).
The money can be collected ( if the loan is secured) from the the guarantors or if the bank has taken a mortgage on the loan, the property can be collected by the bank.
(II). Eddie violated both the criminal law and the civil law because embezzlement( a statutory offence) is different from theft(so, we can't really say that it is a criminal case or it violates the criminal law).
Embezzlement is about converting another's person properties into your own. The judgement depends on the kind of property or the situation in which the fund or the properties are embezzled.
What is the correct way to dispose of used oil filter
1. A_ can be cut from chickens, pheasants, and ducks.
2. Chickens that are large, castrated males are called
3. Boning knives are ideal for cutting around the of poultry.
implies that the poultry has been allowed to go outside.
5. List three steps in trussing a bird.
Answer (1)
A poultry meat can be cut from chickens, pheasants and ducks.
Explanation:
Generally, bird meats are referred to as poultry meat
Answer (2)
Capon
Explanation:
Some male chicken are kept specially for mat production. These male chickens are usually neutered to encourage size increase
Answer(3)
Boning knives are used for cutting around the bones of poultry
Explanation:
Boning knives are used for cutting meat from bones in meats generally
Answer(4)
Free ranged poultry
Explanation:
Some chicken are raised in a free ranged method and allowed to roam outside.
Answer(5)
1. Loop around front and tie wings
2. Tie wings
3. Trim and finish.
Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 4% and IR 5%. A stock with a beta of 1 on IP and 0.6 on IR currently is expected to provide a rate of return of 16%. If industrial production actually grows by 5%, while the inflation rate turns out to be 6%, what is your best guess for the rate of return on the stock? (Round your answer to 1 decimal place.)
Answer:
17.6%
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the rate of return on the stock by using following formula:-
Expected Provide Rate of Return = Estimate Rate of Return on the Stock + (Expected IP × Stock with a Beta on IP) + (Expected IR × Stock with a Beta on IR)
Before estimate rate of return on the stock
= 16% = α + (4% × 1) + (5% × 0.6)
= 16% = α + (0.04 × 1) + (0.05 × 0.6)
= 0.16 = α + 0.04 + 0.03
= 0.16 - 0.04 - 0.03 = α
α = 0.09 =9%
Rate of return after the changes
= 9% + (5% × 1) + (6% × 0.6)
= 0.09 + 0.05 + 0.036
= 0.176
= 17.6%
According to the analysis, New rate of return on the stock is 17.6%
Suppose that on Valentine's Day, the demand for both roses and greeting cards increases by the same percentage amount. However, the price of roses increases by more than the price of greeting cards. Based on this information, you can conclude that the supply of Valentine's cards is sensitive to price than the supply of roses?
Answer:
Based on the information supply of cards is more elastic (price sensitive) than that of roses
Explanation:
Price elasticity of supply is defined as the sensitivity of quantity supplied to changes in price.
The formula is given below
Price elasticity of supply= Change in quantity supplied ÷ Change in price
In this scenario the demand for both roses and cards increases, however the price of roses increases more.
This implies that the denominator in the formula is higher in roses resulting in smaller price elasticity of supply.
The elasticity of supply for cards is higher than that of roses, so it is more sensitive to changes in price.
Cards can be stored from year to year so the labour for maintaining a stock of cards is low with resultant low price.
On the other hand roses require care to grow. It requires watering, application of chemicals to treat infestation and so on. So suppliers tend to push the extra cost of growing roses to the buyers
Answer:
Yes , Valentine cards are more price sensitive.
Explanation:
When Demand exceeds supply, prices rise. As a result of the increase in price, supply increases.
The increase in supply is in line with the law of supply which says, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
If there's an increase in the demand for roses and cards, it is expected that prices would rise. However, if supply for these items increases, prices would fall and if supply doesn't increase, price would not decrease.
So if the price of roses increases by more than the price of greeting cards it indicates that the supply of rose didn't increase as much as the increase in supply of cards.
This means that the supply of roses is less price sensitive when compared to greeting cards.
You are a new summer intern working for a major professional services firm. during your lunch break each day, you and a fellow intern, bob, eat at a local sandwich shop. one day, bob’s girlfriend joins you for lunch. when the bill arrives, bob pays with a company credit card and writes the meal off as a business expense. bob and his girlfriend continue to be "treated" to lunch for a number of days. you know bob is well aware of a recent memo that came down from management stating casual lunches are not valid business expenses. when you ask bob about the charges, he replies, "hey, we’re interns. those memos don’t apply to us. we can expense anything we want. does bob really believe that what he is doing is not wrong? does it matter? what are you going to do about it?
Answer:
1. Bob is aware of what he is doing. He knows it is wrong.
2. It matters.
Explanation:
Bob is committing fraud against the firm. Because he received the memo from the business organization that casual lunches are not business expenses.. Bob acted on purpose as he and his girlfriend who is not an employee are enjoying benefit from the firm by making the meals to be business expenses, when he is aware that they are not. Thus, it can be said that Bob is committing fraud against the business.
2. Yes it matters and as an employee of the business, I'm going to speak to Bob and explain to him that he is going against company policy. And it could constitute as employee embezzlement.
Since the expenses that he is writing off as business expenses is completely invalid. The fraud would be reported to the management because failure to might put me at risk by making me an accomplise to the fraud.
Suppose that the total benefit to any one person (all people are identical) of a fireworks display is , where g is the dollar amount of fireworks(thus the marginal cost of $1 worth of fireworks is $1). Also suppose that each person in a town pays an equal share of the cost of the display. Does adding more people to the town make each person better off(in terms of net benefits derived from fireworks displays)? If so, by exactly how much?
Answer: The answer is provided below
Explanation:
As g is a constant, the addition of more people to the town will decrease per person cost of firework display. Therefore, adding more people to the town will make each person better off.
The net benefit is also equal to the total benefit each person gets (2√g) minus cost of per person of the firework display which is (g/h), where h is the number of people that are in the town.
Net benefits =2√g-(g/h)
Therefore, as h increases, "g/h" decreases and net benefits will increase.
If we then derivative net benefits with its respect to h ,we then get how much the net benefit will change.
∆net benefits/∆h=+g/h²
The Porter Beverage Factory owns a building for its operations. Porter uses only half of th ebuilding and is considering two options for the unused space. The Popcorn Store would like to purchase the half of the building that is not being used for $390,000. A 9% commission would have to be paid at the time of purchase. Salty Snacks would like to lease the half of the building for the next 5 years at $103,000 each year. Stewart would have to continue paying $38,600 of property taxes each year and $7,400 of yearly insurance on the property, according to the proposed lease agreement.
Determine the differential income or loss from the lease alternative.
Enter a loss as a negative number.
Answer:
The differential loss from the lease alternative would be -$69,900
Explanation:
In order to calculate the differential income or loss from the lease alternative we would have to make the following calculations:
Alternative I ( Sale) Alternative II ( Lease)
Sale proceeds net of commission $354,900
Total lease rentals $515,000
Property taxes and insurance ($230,000)
Net proceeds $354,900 $285,000
Difference loss from the lease alternative would be - $69,900
The differential loss from the lease alternative would be -$69,900
5-BB. A large lithium-ion phosphate battery pack for an industrial application is expected to save $20,000 in annual energy expenses over its six-year life. For a three-year simple payback period, the permissible capital investment is $60,000. What is the internal rate of return on this $60,000 battery pack if it has a residual value of $10,000 at the end of six years
Answer:
26.14%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated using a financial calculator
Cash flow in year 0 = $-60,000
Cash flow each year from year 1 to 5 = $20,000
Cash flow in year 6 = $20,000 + $10,000 = $30,000
IRR = 26.14%
To find the IRR using a financial calacutor:
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 IRR button and then press the compute button.
I hope my answer helps you
Horizontal analysis evaluates a series of financial statement data over a period of time:
A. that has been arranged from the highest number to the lowest number.
B. to determine which items are in error.
C. to determine the amount and/or percentage increase or decrease.
D. that has taken place that has been arranged from the lowest number to the highest number.
Answer:
C. to determine the amount and/or percentage increase or decrease.
Explanation:
Horizontal analysis is a method used in financial statement analysis to compare financial ratios, or line items, over a number of accounting periods.
Financial information can be compared with a benchmark.
By making this comparison, one can determine if financial information been compared have increased or deceased.
I hope my answer helps you
Last year Swensen Corp. had sales of $303,225, operating costs of $267,500, and year-end assets of $195,000. The debt-to-total-assets ratio was 27%, the interest rate on the debt was 8.2%, and the firm's tax rate was 25%. The new CFO wants to see how the ROE would have been affected if the firm had used a 45% debt ratio. Assume that sales and total assets would not be affected, and that the interest rate and tax rate would both remain constant. By how much would the ROE change in response to the change in the capital structure
Answer:
The correct option is D
There is increase in ROE by 2.86%
d. 2.86%
EXPLANATION:
THIS IS THE COMPLETE QUESTION BELOW;
Last year Swensen Corp. had sales of $303,225, operating costs of $267,500, and year-end assets of $195,000. The debt-to-total-assets ratio was 27%, the interest rate on the debt was 8.2%, and the firm's tax rate was 37%. The new CFO wants to see how the ROE would have been affected if the firm had used a 45% debt ratio. Assume that sales and total assets would not be affected, and that the interest rate and tax rate would both remain constant. By how much would the ROE change in response to the change in the capital structure?
a. 2.08%
b. 2.32%
c. 2.57%
d. 2.86%
e. 3.14%
CHECK THE ATTACHMENT BELOW FOR DETAILED EXPLANATION
Texas Instruments builds a large plant to produce a great quantity of products, hoping that as prices decline, sales volume increases and thus costs decline. This market-penetration pricing is dependent upon three conditions existing in the marketplace. Which one of the following is NOT one of these conditions?
a. Low price discourages competition from entering the market.
b. Production and distribution costs actually fall with increases in production.
c. Low prices does not increase consumer demand but increases retailer competition.
d. The market is stimulated by lower prices.e. The market is highly price sensitive.
Answer:
c. Low prices does not increase consumer demand but increases retailer competition.
Explanation:
Penetration pricing is a marketing strategy employed for a new product. The price of the new product is initially set relatively low in order to attract customers to the new product.
The goal of penetration pricing is to attract customers through the low prices. If penetration fails to achieve this goal, the firm would most likely incur losses.
Also, if a price war erupts among retailers, it would lead to losses and the goal of penetration pricing would not be achieved.
I hope my answer helps you
For the strategy that Texas Instruments wants to embark on to work, it is not ideal that c. Low prices does not increase consumer demand but increases retailer competition.
For the strategy to work:
More people have to buy the product when the price drops Less competitors should come into the market because they would be worried about low profits Costs reduce with higher productionIf a situation arises where people don't buy regardless of the small prices and more competitors enter thereby reducing market share, Texas Instruments will make a loss.
In conclusion, it is best that there is little competition and increased demand for this strategy to work.
Find out more at https://brainly.com/question/18613754.
Good strategy combined with good strategy execution: Select one: a. Offers a guarantee for avoiding periods of weak financial performance b. Are the two best signs that a company is a true industry leader c. Signal that a company has a superior business model d. Are the most trustworthy signs of good management
Answer:
d. Are the most trustworthy signs of good management
Explanation:
The strategy refers to the planning through which the company could able to accomplish its goals and objectives within the prescribed time set by the company
The goods strategy mostly achieved the company targets within the standard time set by the company. And if the combination of both the good strategy and execution of the good strategy leads to the sign of good management i.e become trustworthy.
hence, the last option is correct
At the beginning of July, CD City has a balance in inventory of $3,400. The following transactions occur during the month of July.
July 3 Purchase CDs on account from Wholesale Music for $2,300, terms 1/10, n/30.
July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110.
July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200.
July 11 Pay Wholesale Music in full.
July 12 Sell CDs to customers on account, $5,800, that had a cost of $3,000.
July 15 Receive full payment from customers related to the sale on July 12.
July 18 Purchase CDs on account from Music Supply for $3,100, terms 1/10, n/30.
July 22 Sell CDs to customers for cash, $4,200, that had a cost of $2,500.
July 28 Return CDs to Music Supply and receive credit of $300.
July 30 Pay Music Supply in full.
Required:
1. Assuming that CD City uses a perpetual inventory system, record the transactions.2. Prepare the top section of the multiple-step income statement through gross profit for the month of July.
Answer:
Journal Entries
July 3
CDs Inventory $2,300 (debit)
Trade Payable - Wholesale Music $2,300 (credit)
July 4
Freight Charges $110 (debit)
Cash $110 (credit)
July 9
Trade Payable - Wholesale Music $200 (debit)
CDs Inventory $200 (credit)
July 11
J1
Trade Payable - Wholesale Music $2,079 (debit)
Cash $2,079 (credit)
J2
Trade Payable - Wholesale Music $21 (debit)
Discount Received $21 (credit)
July 12
J1
Trade Receivable $5,800 (debit)
Revenue $5,800 (credit)
J2
Cost of Goods Sold $3,000 (debit)
Inventory CDs $3,000 (credit)
July 15
Cash $5,800 (debit)
Trade Receivable $5,800 (credit)
July 18
Inventory CDs $3,100 (debit)
Trade Payable - Music Supply $3,100 (credit)
July 22
J1
Cash $4,200 (debit)
Revenue $4,200 (credit)
J2
Cost of Goods Sold $2,500 (debit)
Inventory CDs $2,500 (credit)
July 28
Trade Payable - Music Supply $300 (debit)
CDs Inventory $300 (credit)
July 30
J1
Trade Payable - Wholesale Music $2,772 (debit)
Cash $2,772 (credit)
J2
Trade Payable - Wholesale Music $28 (debit)
Discount Received $28 (credit)
multiple-step income statement
Revenue ($4,200+$5,800) $10,000
Less Cost of Goods Sold :
Opening Stock $3,400
Add Purchases ( $2,300 + $3,100) $5,400
Less Returns Outwards ( $200 + $300) ($500)
Add Freight Charges $110
$8,190
Less Closing Stock (Balancing figure) ($190)
Cost of Goods Sold ($3,000+ $2,500) $8,000
Gross Profit $2,000
Explanation:
The Income Statement is Prepared on Accrual Basis of Accounting meaning that Revenues and Expenses are recorded when they occur or incur not when cash is paid or received.
Ben attended a workshop hosted by SCORE, a SBA organization that counsels small-business owners on developing a good vision statement. In that workshop the speakers discussed how an organization's vision needs to describe ________.
Answer:
what the company wants to become, and its long-term direction and strategic intent
Explanation:
Vision statement is a long term road map of the direction a business needs to take in order to achieve its set goals and objectives. It usually undergoes little revision.
However the short term operational processes are constantly reviewed to make the business better align with long term goals as stated in the vision statement.
In this scenario where the vision statement of small businesses are being formulated the speakers will discuss what the company wants to become, and its long-term direction and strategic intent
For a certain good we have LaTeX: q=f\left(p\right)=200e^{-0.4p}q = f ( p ) = 200 e − 0.4 p. a) Find the elasticity of demand at price p = $50. b) At p = $50, is the demand elastic, inelastic, or does it have unit elasticity? Explain what this means for this product. c) Find the elasticity of demand at price p = $20. d) At p = $20, is the demand elastic, inelastic, o
Answer:
a) 20
b) elastic
c) 8
d) elastic
Explanation:
Given that q = f ( p ) = [tex]200e^{-0.4p}[/tex]
[tex]\frac{dq}{dp} = -80e^{-0.4p}[/tex]
a) The elasticity of demand is given as:
Elasticity of demand = [tex]\frac{dq}{dp}*\frac{p}{q}[/tex]
At p =$50, [tex]\frac{dq}{dp} = -80e^{-0.4p}=-80e^{-0.4*50}=-1.65*10^{-7}[/tex]
q = f ( p ) = [tex]200e^{-0.4p}[/tex] = [tex]200e^{-0.4*50}=-4.12*10^{-7}[/tex]
Elasticity of demand = [tex]\frac{dq}{dp}*\frac{p}{q}[/tex] = [tex]-1.65*10^{-7}*\frac{50}{-4.12*10^{-7}}=20[/tex]
b) At p = $50, it is elastic Since Elasticity of demand is greater than 1 it is elastic. That is the price have a big effect on the quantity
c) The elasticity of demand is given as:
Elasticity of demand = [tex]\frac{dq}{dp}*\frac{p}{q}[/tex]
At p =$20, [tex]\frac{dq}{dp} = -80e^{-0.4p}=-80e^{-0.4*20}=-0.027}[/tex]
q = f ( p ) = [tex]200e^{-0.4p}[/tex] = [tex]200e^{-0.4*20}=-0.067[/tex]
Elasticity of demand = [tex]\frac{dq}{dp}*\frac{p}{q}[/tex] = [tex]-0.027*\frac{20}{-0.067}=8.0[/tex]
d) At p = $20, it is elastic Since Elasticity of demand is greater than 1 it is elastic
On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $100,000 face value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $30,192 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $52,000 cash per year.
Prepare an amortization schedule for the four-year period.
Answer: Please see below
Explanation: Amortization for the four year period is given as
FOR 2018
Principal Balance = $100,000
cash payment for dec 31st= #30,182
Applied to interest== 8% of 100000= 0.08 x100,000=8000
Applied to Principal = cash payment -interest= 30192-8000= $22, 192
Principal balance at end of period=Principal Balance--applied to Principal
= 100,000 - 22,192=$ 77, 808
FOR 2019
Principal Balance = $77,808
cash payment for dec 31st= $30,182
Applied to interest== 8% of 77,808= 0.08 x77,808 =$6225
Applied to Principal = cash payment -interest= 30192-6225= $23,967
Principal balance at end of period=Principal Balance--applied to Principal
= 77,808 - 23,967=$ 53,841
FOR 2020
Principal Balance = $53,841
cash payment for dec 31st= $30,182
Applied to interest== 8% of 53,841= 0.08 x53,841 =$4307
Applied to Principal = cash payment -inbterst= 30192-4307= $25,885
Principal balance at end of period=Principal Balance--applied to Principal
= 53,841- 25,885= $27,956
FOR 2021
Principal Balance = $27,956
cash payment for dec 31st= $30,182
Applied to interest== 8% of 27,956= 0.08 x27,956 =$2236
Applied to Principal = cash payment -interest= 30192-2236= $27,956
Principal balance at end of period=Principal Balance--applied to Principal= 27,956- 27,956=0
Leichter Auto Parts, a family-owned auto parts store, began January with $ 10,500 cash. Management forecasts that collections from credit customers will be $ 11,000 in January and $ 15,200 in February. The store is scheduled to receive $ 8,500 cash on a business note receivable in January. Projected cash payments include inventory purchases ($ 15,600 in January and $ 14,800 in February) and selling and administrative expenses ($ 2,900 each month).).Leichter Auto Parts's bank requires a $10,000 minimum balance in the store's checking account. At the end of any month when the account balance falls below $10,000, the bank automatically extends credit to the store in multiples of$1,000. Leichter Auto Parts borrows as little as possible and pays back loans in quarterly installments of $2,500, plus 33% APR interest on the entire unpaid principal. The first payment occurs three months after the loanprepare Northeast AutoParts's cash budget for January and February.
Answer:
Northeast AutoParts's
Cash Budget
January February
Cash inflows:
Customers' credits $11,000 $15,200Business note $8,500Total cash inflows $19.500 $15,200
Cash outflows:
Inventory purchases ($15,600) ($14,800)selling and adm. expenses ($2,900) ($2,900)Total cash outflows ($18,500) ($17,700)
Monthly cash flow $1,000 ($2,500)
Initial cash balance $10,500 $11,500
Ending cash balance $11,500 $9,000
Required bank loan $0 $1,000
Total $11,500 $10,000
Explanation:
January 1, beginning cash $10,500
cash collections from customers' credits:
January $11,000February $15,200also a business note for $8,500 in Januaryestimated cash outflows:
January $15,600February $14,800S&A expenses $2,900 each monthBank's minimum balance $10,000
loans in multiples of $1,000
Salad Express exchanged land it had been holding for future plant expansion for a more suitable parcel of land along distribution routes. Salad Express reported the old land on the previously issued balance sheet at its original cost of $79,000. According to an independent appraisal, the old land currently is worth $150,000. Salad Express paid $23,500 in cash to complete the transaction.
Required
1. What is the fair value of the new parcel of land received by Salad Express?
2. Record the exchange.
Answer:
1. $173,500
2. $ 71,000
Explanation:
Requirement 1: Solution
We can calculate the fair value of new parcel of land just by adding the current market price with additional cash paid to complete the transaction
Fair Value = Current market price + cash paid additionally
Fair Value = $150,000+$23,500
Fair value = $173,500
Requirement 2: Solution
We need to calculate Gain/loss on exchange first in order to record them on books. This can be done by just subtracting the land's book value from the current market price of land
Gain/loss on exchange = Current market price - book value
Gain/loss on exchange = $150,000 - $79,000
Gain/loss on exchange = $71,000
Entries: Debit Credit
New land $173,500
Old land $79000
Cash $23,500
Gain $71,000
Andrew Industries purchased $172,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $23,400, and the materials used to complete jobs during the month were $147,300 of direct materials and $13,700 of indirect materials. What is the ending Raw Materials Inventory balance for March?
Answer:
ending inventory= $34,400
Explanation:
Giving the following information:
Purchase= $172,000
Beginning Raw Materials= $23,400
Materials used= $147,300 of direct materials and $13,700 of indirect materials. (161,000)
To calculate the raw materials ending inventory, we need to use the following formula:
Direct material used= beginning inventory + purchases - ending inventory
161,000= 23,400 + 172,000 - ending inventory
ending inventory= 23,400 + 172,000 - 161,000
ending inventory= $34,400
Spiffy Sandals (Scenario) Spiffy Sandals is a Canadian footwear firm. Spiffy is planning to enter into a contract with an international producer to lower costs of production. On paper the figures look very good. However, Spiffy management has learned that the producer's factories are sweatshop conditions. Benito is the key Spiffy executive involved in the contract. He adheres to the relativist view regarding ethical standards and in meetings often says "When in Rome, do as the Romans do." Which of the following do you think Benito agrees with most strongly?
a. Freedom should not partner with foreign business entities.
b. Freedom should passively accept the practices that prevail in countries where it does business.
c. Freedom should not hire foreign managers.
d. Freedom should institute a single global code of conduct for all its employees and suppliers.
Answer:
Option B. Freedom should passively accept the practices that prevail in countries where it does business.
Explanation:
The Spiffy Executive knows that the a norm or ritual or common practice can be ethical in one country whereas not acceptable in the other one. So when he says that "when in Rome, do as the Romans do", so he literally means that we are going to accept the cultural diffences and get maximum out of it. This means he is not concerned about the sweatshop conditions as it is acceptable in that country.
Flow Company has provided the following information for the year ended December 31, 2014:Cash paid for interest $20,000Cash paid for dividends $6,000Cash dividends received $4,000Cash proceeds from bank loan $29,000Cash purchase of treasury stock $11,000Cash paid for equipment purchase $27,000Cash received from issuance of common stock $37,000Cash received from sale of land with a $32,000 book value $25,000Acquisition of land costing $51,000 in exchange for preferred stock issuance Payment of a $100,000 note payable by exchanging used machinery with a $77,000 book value and $100,000 fair value Required:How much was Flow's net cash flow from investing activities:_________a) A net outflow of $2,000.b) A net inflow of $2,000.c) A net outflow of $53,000.d) A net inflow of $49,000.
Answer:
The correct option is B,A net inflow of $2,000
Explanation:
The net cash flow from investing activities is the cash dividends received minus cash paid for equipment purchase plus cash received from sale of land
Cash dividends received is $4,000
cash paid for equipment purchase is $27,000
Cash received from the sale of land is $25,000
Net cash flow from investing activities=$4000-$27,000+$25,000=$2000
The correct option ,therefore, is B, a net cash inflow of $2000 from investing activities
2. Beachcomer, a coin dealer, sues to rescind a purchase by Boskett, who paid $50 for a dime both parties thought was minted in San Francisco. In fact, it was a very valuable dime minted in Denver. Beachcomer asserts a mutual mistake of fact regarding the genuineness of the coin as San Francisco-minted. Boskett contends that the mistake was as to value only. Explain who should win.
Answer and Explanation:
Beachcomer will withdraw its complaint (university of technology Legal Proceedings) to eliminate the deal, as Boskett acknowledges the poor interest. In actuality, Beachcomer claims that there is a consensual error in trying to measure the dime significance. Sue to revoke was the method used mostly by Beachcomer could assert the quality of Dime.As well as, if Beachcomer brings the suit back but rather resolves the deal with each other, all of them seem to be in a win-win situation. When Beachcomer decides to withdraw and Boskett can pay for its true worth, therefore Boskett will win, because the deal has indeed actually occurred.So that the above seems to be the right answer.
During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows:
Resource Airplane Flight Hours Total Cost
Airplane depreciation:
High 44,000 $ 18,000,000
Low 28,000 18,000,000
Fuel:
High 44,000 445,896,000
Low 28,000 283,752,000
Airplane maintenance:
High 44,000 15,792,000
Low 28,000 11,504,000
Required:
1. Develop an annual cost formula for airplane depreciation.
Total annual cost of airplane depreciation = ________ x $________
Develop an annual cost formula for fuel.
Total annual cost of fuel = $________ x (Select: Airplane depreciation, Fuel, or Annual number of airplane flights))
Develop an annual cost formula for airplane maintenance.
Total annual cost of airplane maintenance = $________ + ($_____ x (Select: Airplane depreciation, Fuel, or Annual number of airplane flights))
2. Using the three annual cost formulas that you developed, predict the cost of each resource in a year with 480,000 airplane flight hours.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Airplane depreciation:
High 44,000 $ 18,000,000
Low 28,000 $18,000,000
Fuel:
High 44,000 $445,896,000
Low 28,000 $283,752,000
Airplane maintenance:
High 44,000 $15,792,000
Low 28,000 $11,504,000
Required:
1.
A) Depreciation expense remains constant on both flight hours. Therefore, the depreciation expense is calculated using the straight-line method. In this method, depreciation is constant.
Depreciation expense= $18,000,000
B) To calculate the fuel cost, we need to use the high low method:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (445,896,000 - 283,752,000) / (44,000 - 28,000)
Variable cost per unit= $10,134 per hour of flight.
Fuel is a variable cost.
C) We need to calculate the variable and fixed component of maintenance.
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (15,792,000 - 11,504,000) / (44,000 - 28,000)
Variable cost per unit= $268
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 15,792,000 - (268*44,000)
Fixed costs= $4,000,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 11,504,000 - (268*28,000)
Fixed costs= $4,000,000
2. Hours= 480,000
Depreciation= 18,000,000
Fuel= 10,134*480,000= $4,864,320,000
Maintenance= 268*480,000 + 4,000,000= $132,640,000
Total= $5,014,960,000
A company allocates overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $1,020,000, and direct labor cost is $525,000.
a. Determine whether there is over- or underapplied overhead using the T-account.
b. Prepare the entry to close over- or underapplied overhead to cost of goods sold.
Answer:
(A) $180,000 (B) A journal entry was prepared for over- or under applied overhead to cost of goods sold.
Explanation:
Solution
Now,
Let us recall from the statement from the example as follows:
A company gives an overhead at =1 60% rate
The actual overhead cost for the present period is =1020,000
Direct cost of labor = $525,000
Then,
(a) For the under applied overhead using T account we have the following:
The direct labor cost overhead = 525,000 * 160% (allocated overhead)
=$ 840,000
Thus
The Under applied overhead becomes,
Under applied overhead =The actual overhead - applied overhead
In other words we deduct the actual overhead for applied overhead
=$1020,000 - $840,000 = $180,000
(B) A Journal entry is carried out for the close over or under applied overhead.
Date Particulars Debit Credit
Cost of goods sold A/c $180,000
Manufacturing overheads $180,000
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer.
Month Occupancy- Days Electrical Costs
January 3,250 $9,660
February 3,470 $10,185
March 3,660 $10,360
April 1,760 $6,160
May 1,350 $4,725
June 4,350 $11,575
July 3,280 $9,765
August 1,610 $5,635
September 700 $2,450
October 1,300 $4,550
November 1,640 $5,740
December 2,220 $7,770
Required:
1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day.
2. What other factors other than occupacy-days are likely to affect the variation in electrical costs from month to month?
Answer:
1) Variable cost = $2.5
Fixed cost per month = $700
2) Factors like location, weather conditions, nature of clients, number of equipments used are other factors other than occupacy-days that are likely to affect the variation in electrical costs from month to month.
Explanation:
1) Find the fixed cost and variable cost using high-low method.
For the occupancy days electric cost, let's check for the high & low activity level, i.e months with the highest and lowest costs.
High activity level = June 4,350 $11,575
Low activity level = September 700 $2,450
Change = high - low
= 3650 (4350 - 700), $9125 ($11,575 - $2450)
Change = 3650, $9125
It means that Change in cost = $9125
Also, Change in activity = 3650
For variable cost, we'll use the formula:
Variable cost = change in cost / change in activity
= $9125 / 3650
= $2.5
Variable cost = $2.5
For fixed cost:
Fixed cost = Total cost - variable cost element
= 11575 - (2.5 * 4350)
= 11575 - 10875
= $700
Fixed cost per month = $700
2) Factors like location, weather conditions, nature of clients, number of equipments used are other factors other than occupacy-days that are likely to affect the variation in electrical costs from month to month.
Martinez Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the cost driver of purchase orders. The activity cost pool of assembly has a cost driver of parts. The activity cost pool of supervising has the cost driver of labor hours. The accumulated data relative to those cost drivers is as follows: Cost Drivers Total Expected Estimated Leashes Collars Cost Drivers Overhead Purchase Orders 130,000 orders $260,000 70,000 60,000 Parts 800,000 parts 400,000 300,000 500,000 Labor Hours 25,000 hours 300,000 15,000 10,000 $960,000The costs assigned to leashes for supervising are:_______.a. $90.000b. $180.000c. $120.000d. $60.000
Answer:
The cost assigned to leashes for supervising is $180,000
Explanation:
Estimated Overhead Cost Drivers Overhead Rates
$ 260,000.00 130,000 $ 2.00 Per Order
$ 400,000.00 800,000 $ 0.50 per Part
$ 300,000.00 25,000 $ 12.00 Per Hour
Labor hours for the leashes is 15,000 hours
Cost assigned to leashes for supervising = 15,000 x 12 = $180,000
Use the following information to prepare the September cash budget for PTO Co. The following information relates to expected cash receipts and cash payments for the month ended September 30.Beginning cash balance, September 1, $40,000.Budgeted cash receipts from sales in September, $255,000.Raw materials are purchased on account. Purchase amounts are August (actual), $80,000; and September (budgeted), $110,000. Payments for direct materials are made as follows: 65% in the month of purchase and 35% in the month following purchase.Budgeted cash payments for direct labor in September, $40,000.Budgeted depreciation expense for September, $4,000.Other cash expenses budgeted for September, $60,000.Accrued income taxes payable in September, $10,000.Bank loan interest payable in September, $1,000.
Answer and Explanation:
According to the scenario, the presentation of the September cash budget is presented below:
September Cash Budget for PTO Co.
Particulars Amount ($)
Opening cash balance 40,000
Add - Cash receipts 225,000
Total cash receipts 265,000
Less - Cash paid for raw material in august (80,000 × 35%) -28,000
Less - Cash paid for raw material in September (110,000 × 65%) -71,500
Less - Direct labor -40,000
Less - Cash expenses -60,000
Less - Income tax paid -10,000
Less- Bank interest -1,000
Ending cash balance 54,500
We simply added the cash receipts as it increased the cash balance and deduct all cash payments as it decreased the cash balance
